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By V Kumar, A S. Venkatesh, R K. Upadhya

The enormous iron ore deposits of eastern India are part of the volcano-sedimentary basins containing iron and to some extent manganese deposits that belong to the Iron Ore Group (IOG) of Archaean Singhbhum Craton, occurring as western and eastern limbs of a broad synclinorium. The eastern iron basin contains typically huge amounts of blue dust and powdery ores. There is a remarkable difference between the western flank ores and the eastern flank ores and the present study is part of the eastern flank ores from Noamundi. Demand for sintered fines as blast furnace feed coupled with the higher export price for lumpy ores that produce enormous amounts of fines during processing has created a situation whereby both primary and secondary fines, such as classifier fines, are being increasingly used as sintered feed for blast furnace. Systematic mineralogical and geochemical characterisation indicates that in many cases the ROM and classifier fines have to be processed to increase their Fe content and at the same time reduce their Al, Si and P contents. The fines which are already at micron sizes are amenable for beneficiation using the Mozley mineral separator and sink float test. It was observed that beneficiation was better and significantly greater by the sink float method than the Mozley mineral separator. Mineralogical and chemical studies of the fines reveal that around 80 per cent of alumina bearing minerals (gibbsite, clay and silicates) are present in the liberated form. Microscopic studies confirmed that the iron minerals are well liberated by controlled grinding to -300 mesh sizes with the beneficiation of iron ore fines and low-grade ores carried out using the Mozley mineral separator and sink float test. Beneficiation using the Mozley mineral separator increased the grade of concentrate with increasing flow rate of water as well as increase in amplitude of oscillation of the tray, but not very significantly with the increase in slope of the tray. In this method, though, iron concentration improved from 47 to 63 per cent with a recovery of around 67 per cent. It is not suitable for industry scale operation as only a small quantity of ores can be handled at a time. Beneficiation using the sink float test produced a better result with the Fe content increasing from 47 - 49 per cent to 66 - 68 per cent with a recovery of approximately 58 per cent. Initial feed Al2O3, SiO2 and Fe contents of 9.85 per cent, 15.3 per cent and 49.8 per cent respectively were beneficiated to 2.13 per cent Al2O3, 1.5 per cent SiO2 and 67.5 per cent Fe in the concentrate, with a recovery of 54.1 per cent. In contrast, using the Mozley table resulted in beneficiable contents 66.3 per cent Fe, 3.01 per cent alumina and 2.05 per cent silica. The combined alumina and silica content for the Mozley Table was >5 per cent, which exceeds the industry requirement of

Jan 1, 2005

By R. L. Grant

During the last decade or more , experimental research on commercial detonators used for initiating the detonation of dynamite and other high explosives has led to important improvements . Developments , especially in the United States , have been directed toward improvement in the construction of detonators to make them safer to manufacture and use . More suitable and safer initiating charges also have been found . Although for many years mercury fulminate was unrivaled as the initiating charge for dynamite , during the last decade it has been replaced to a large extent by less sensitive , more efficient, and cheaper combinations of ignition , priming , and base charges . Commercial detonators were once of relatively simple construction and almost universally identical . Today they are technically complex, with special nodifications for particular uses ; they have developed along different lines n various countries and even among the several manufacturers within any one country .

Apr 1, 1943

By R. P. Stahura

In many ways, conveyors are the lifeline of mining and processing operations. Like arteries in the human body, they continuously supply materials to and carry finished products and waste away from vital on-going operations. And like arteries, when the conveyors are running with less than maximum efficiency and productivity, it spells serious trouble for the operation's overall health. Inefficient conveyors suffer carryback, leading to the build-up of materials on idlers and other expensive components. They spill and leak material at loading zones and conveyor transfer points, causing accumulations that can damage the belt, wear moving components, and increase both clean-up labor and maintenance expense. They wander or mistrack, spilling material and endangering personnel and conveyor components including the belt itself. And through these inefficiencies, they multiply the operation's hidden costs. These added expenses are created in lost production, increased downtime for service and maintenance, and the cost of the replacement of prematurely worn equipment. In addition, the attitude that inefficiency is "good enough" is recognized elsewhere in the organization; as a result, other departments relax or operate at less than peak performance. Quality goes down and with it employee morale.

Jan 1, 1992

By M. D. Hassialis

THE object of a technical paper is to communicate new technical knowledge, the paper being the vehicle of communication and the existence of new knowledge its reason for being. It follows that the development of information worthy of communication, the criterion being novelty, is prerequisite to exercising the privilege of communication. The act of communication is achieved when the reader perceives the nature of the new knowledge, i.e., when he understands it. A paper achieving this objective is an acceptable technical paper. Development of new knowledge has as one of its purposes the increase of the existing state of knowledge and the enjoyment of the benefits derived therefrom. Technical knowledge is a collection of facts so ordered as to make apparent, relations existing between the facts. When the interrelations have been exposed the facts have been interpreted or explained Three broad, overlapping categories of technical papers may be recognized: papers consisting of (a) a report of facts, (b) an explanation of facts, or (c) a combination of a report and an interpretation. Ideally a technical paper should belong to one of the last two categories but current practice is to accept papers belonging to any of the three categories. Based on a small sample drawn from the scientific and engineering literature, the relative frequency of the three types is a: b: c:: 20:1:14. If the sample be limited to engineering literature, the ratios become a:c::2:1; type (b) being nonexistent. This large departure from the ideal is a consequent of the

Jan 1, 1948

By S W. Houlding

The Certificate in Mining Studies program at the University of British Columbia, Vancouver, Canada is a collaborative initiative between mining schools and industry to provide accessible, cost-effective, accredited continuing education and training, designed to address the future needs of the global mining community. Content is provided by industry specialists and delivered through an integration of online learning, short courses and interactive webcasts. Accreditation is provided by a network of mining schools. In 2011, the program will deliver close to 100 short courses and interactive webcasts and provide 24/7 access to more than 130 online courses in six mining streams, to participants from as far afield as Tanzania, Argentina and Mongolia. The program is proving adaptable to corporate and mine site engineer-in-training and graduate-development programs, as well as providing accessible professional development opportunities for individuals. It also provides opportunities for cross-training from other disciplines and integration with mining school curricula.

Nov 22, 2011

By R. L. Zick

The High Density Sludge Process was originally developed by Bethlehem Steel Corporation for use on acid mine drainage and diluted waste pickle liquor discharges requiring continuous chemical treatment systems. This work began in the early 1970s and was first put into practical use around 1973. To date there are approximately 15 operating systems which have been installed on mine drainage in the United States, and another 10 systems worldwide. Dense Sludge is an innovative and improved method for treating acidic metal bearing streams in a manner which minimizes the volumetric generation of sludge for disposal. The technology utilizes a sludge recycle process which forms particles that have a low affinity for water, unlike conventional metal hydroxide solids which contain tightly bound interstitial waters. Typical acid mine drainage streams contain high sulfate concentrations which combine with calcium ions in lime based treatment systems to form gypsum crystals. The physical form of this gypsum is radically altered when the Dense Sludge process is utilized compared to the form generated in conventional lime treatment systems. The characteristics of the metals particles are also changed in this process, as the metal hydroxides are converted to metal oxides. Slides No. 1 and No.2 show scanning electron micrographs of conventional and densified sludges illustrating these differences. The magnification used was 300X. The dense sludge particles settle faster, dewater more readily, are more easily pumped, and hold much less water than conventional precipitates. In some cases, because the metal content of the sludge is more concentrated, it can be economically recovered.

Jan 1, 1998

By Phillip E. Butler

Since early 1973, the Pennsylvania Department of Transportation (PennDOT) has been actively engaged in the utilization of coal mine refuse in the design and construction of highway embankments. The Soils and Geological Engineering Division of the Bureau of Materials, Testing and Research has the task of managing the program which includes field investigations, laboratory testing, engineering evaluation, planning, coordination, implementation, construction control, and review of construction performance. The objectives of the utilization program, in removing colliery refuse banks and utilizing the material in construction, are the environmental and aesthetic rehabilitation of those areas in the Anthracite and Bituminous coal fields which have been plagued for such a long time by air and water pollution, and unsightly landscapes; and the economic rehabilitation of those areas occupied by refuse banks by providing usable land which can now be developed as residential, business, or industrial sites.

Jan 1, 1975

By G. Martino, F. Silva, Emmanuel Marchal

The definition of the chemical specification at multiple steps of the steelmaking process is very common in the industry. Among all elements and compounds, the Sulphur content has a special control over several stages, from the coal blend to the final products. Coke, iron and steelmaking specialists usually agree on a static specification for each intermediate product according to their local operation capacity and production cost. However, local decisions have major impacts on the whole production chain and many global factors should be considered in order to make the best decision. In this study, we will exemplify focusing on Sulphur content concepts and techniques that could be applied to many decisions in an integrated carbon steel plant. The variation of coal and coke prices, the desulphurization cost and time, the processes operating points, the hot metal rate at converters, prices and demands of low and ultra-low Sulphur steel grades are some of the integrated factors that are usually disregarded during the specification process. Mathematical modeling presents itself as a proper option into dealing with all the complexity that emerges from integrating all these processes' trade-offs and decisions. This study presents the results of a mathematical model that encompasses economic, thermal, chemical, and mass balances, physical quality of materials and productivity constraints of all processes of a hypothetical integrated carbon steel plant. It optimizes the iron and steelmaking process on a global and unique objective, dynamically defining targets for product quality to achieve the lowest steel production cost. This study details multiple market-plant scenarios in order to compare economic and operating results of a static vs dynamic specification practice.

Oct 1, 2019

By D. E. Wolfson, D. A. Reynolds, F. W. Smith

IN 1948 the U. S. Bureau of Mines began a three-phase program to evaluate the extent and quality of U. S. coking coal: 1) a factual appraisal of known recoverable reserves in beds of mineable thickness, 2) a study of preparation characteristics, and 3) a study of carbonization properties. A previous paper presented the methods used in assessing reserves.' Although this investigation is only partly completed, data on coking properties of the Pittsburgh district coals are now available. The results are presented in this article. When coals are selected for manufacture of metallurgical coke more factors must be considered than for any other major use, as no basic industry requires coal of such high quality and uniformity. This is particularly true in the Pittsburgh district, where blast furnace practice is based on use of cokes from high quality coals. Although it is true that inferior coals are carbonized in other industrial areas, both here and abroad, the Pittsburgh coals are the best economically obtainable in the required tonnages, even though they are not the most desirable for metallurgical use. In the general evaluation of suitability of coals for coke making, particular attention is given to: 1) reserve, 2) ash and sulfur content, 3) inherent properties of forming strong, well fused coke, 4) expanding characteristics, and 5) blending properties. Items 1 and 2 are covered in detail in the first two phases of the survey, and coking behavior is considered in items 3 through 5. Problems is Coal Evaluation: Although not all coal beds of immediate or potential use to the coking industry in the Pittsburgh area have been tested for their coking properties, enough tests have been made to permit certain generalized statements. Virtually all the coals that will be used in this district are from the Appalachian region, and except for high oxygen coals from outcrops or stripping operations, they are coking coals. Hence the evaluation problem is not so much that of distinguishing between coking and noncoking coals as attempting to measure quantitatively differences in the coking and expanding properties of the better coking coals. Quantitative differentiation between good coking coals, is complex, since differences in their coking abilities are frequently of about the same magnitude as the precision of the test. Small-scale tests are generally unsuitable for measuring these slight differences, and there has been gradual acceptance of pilot-scale tests. Test Methods Employed: All the data reported here were obtained in two units known as the Bureau of Mines-American Gas Association (BM-AGA) carbonization apparatus and the sole-heated expansion oven. The BM-AGA unit, which consists essentially of a cylindrical steel retort about 18 in. diam and 26 in. high, carbonizes enough coal (180 lb) to allow evaluation of the coke by standard methods of the American Society for Testing Materials. The BM-AGA carbonization procedure and methods of testing the gas, liquid, and solid products have been described.' Expanding characteristics of the coals were determined in the sole-heated expansion oven," wherein the coal charge, heated from the bottom only, is carbonized under a constant applied force and the linear expansion or contraction is measured. Although results in this oven have never been quantitatively correlated with the expansion behavior of coals in conventional slot ovens, they are useful in assessing expansion behavior. In this report discussion will be confined to results obtained from these pilot-scale units, although the following data are available for most coals: proximate and ultimate analyses, free swelling index, agglutinating value, and plasticity. Sources of Coals Tested: In selection of coals for coke manufacture, economic considerations are as important as quality, and each coke plant balances these two factors to meet requirements of the most satisfactory coke at lowest price. Although these economic factors may in some instances outbalance small differences in coke quality, they are usually specific to each coke plant and cannot be given in any general statement. Recognizing that coal and plant operating costs are beyond the scope of the survey, the USBM evaluates the coking quality of various coals without regard to their competitive economic status. For the purpose of this article, coals of interest to the Pittsburgh district are arbitrarily defined as

Jan 1, 1958

By M. Downing

This paper gives a brief overview of impacts of coal blending on coal-fired power plants performance and discuses the preliminary results of an on-going study aimed at evaluating the effect of coal properties on the effectiveness, compatibility and thermal reactivity of coal blends. Plant survey studies reported no significant impacts on an existing plant designed for a high rank coal when switched to a blend of low-and high-rank coal. However, slight modification of some aspects (handling, fuel storage/stockpile, transportation, preparation, and general housekeeping) of plant design and operation may be necessary. The preliminary results of an on-going study at the Mineral Industry Research Laboratory shows that more compatible and better blends could be made from coals where ranks are closer than from those where ranks are far apart.

Jan 1, 1997

By A Giblett, B Putland

This paper provides a simple guiding framework for grinding circuit optimisation, focussing on common themes in past optimisation success stories, the conditions for success and techniques that can be employed to identify and define opportunities. Many significant grinding circuit improvements have been reported for operating plants, based on recurring themes such as the optimisation of mill feed size, mill liner design, process control, critical size, grinding media and classification. The paper condenses these experiences into a set of simple questions for the operator to ask, and provides guidance towards identifying and achieving the optimisation goals.CITATION:Giblett, A and Putland, B, 2018. The basics of grinding circuit optimisation, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 129–140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By Chu Bo-Yi

"This paper contains a comparison of creep-feed and shallow-cut grinding on ceramics with both neat oil and water-based grinding fluids. When a water-based grinding fluid was used in creep-feed grinding on ceramics the vertical forces and specific energies increased markedly fast with result that the wheel surface was damaged seriously. Creep-feed grinding on ceramics with neat oil not only produced much lower grinding forces and specific energies but also resulted in the wheel remaining in good condition and minimizing damage to the ground surface. This finding may lead to a deeper understanding of the behaviors of grinding fluids in grinding processes both on ceramics and metal as well.1. IntroductionAs advanced ceramics are obtaining more and more applications in the technical area, some machining processes are needed after the sintering to reach the accuracy and finish required by components. Because of higher hardness and brittle behaviors of modem ceramic many researches have been done in order to improve grinding efficiency and surface quality.In the grinding metals the concept of creep-feed grinding has been developed in industry as a real alternative to the normal method of shallow-cut grinding. In addition to the general economic advantages, dimensional accuracy and surface integrity are invariable improved using the creep-feed grinding technique.In grinding ceramics former studies have done many works on both creep-feed and shallow-cut grinding on ceramics with water-based grinding fluids since the water-based were thought to be better coolants than neat oil in most tests of grinding metals[l]. It was suggested that the specific grinding energies of ceramics are markedly higher in creep-feed grinding. The grinding force increases vary rapidly with time in the creep-feed case. In other words, so-called speed stroke grinding with high workpiece speed is considered more suitable for improving the grinding efficiency [2][3]."

Jan 1, 1998

By S. J. Frank

Ferroalloy furnaces are well known to be extremely difficult to control from a metallurgical perspective. Mostly metallurgical control is still reactive in nature, causing a significant amount of reworking and product blending to achieve a proper product specification. Despite numerous efforts towards the model based control of primary smelting operations, actual metallurgical feed forward control seems to remain elusive. One of the key reasons in the failure to model these metallurgical reactors well, is that fundamentally orientated pyrometallurgists, statisticians, data miners and control engineers very often have diverging ideas how to model these systems. Furthermore, metallurgists have often come to rely on their ability to develop empirical regression models of furnace behaviour, as they have lost their faith in the ability of thermochemical and metallurgical engineering fundamentals to accurately predict the outcomes from furnaces. This paper shows how good thermochemical modelling can be combined with proper technological and systems analysis, as well as a proper inventory model, to predict the alloy and slag chemistry with good accuracy one tap into the future, at a time horizon of typically around 4 to 6 hours. For this modelling approach, a number of tools will be used, such as data reconciliation, thermodynamic modelling using Fact Sage®, inventory and heel estimation, neural networks and statistical data exploration. Furthermore, systems identification theory will be combined with the approaches given above to develop a truly dynamic predictive model. This paper seeks to demonstrate the need for a hybrid approach, which incorporates plant data and readily accessible thermodynamic data to develop a proper dynamic model.

Jan 1, 2004

By C. C. Furnas

In the course of an investigation3 of the flow of gases through beds of broken solids the author obtained a number of data .on the specific volume of beds of broken solids of variously mixed sizes. A mathematical theory of the limiting conditions has been developed and some generalizations have been made for intermediate cases. A more definite knowledge of the relation between space occupied and size composition would be valuable to all those who are handling large quantities of broken materials. Such knowledge might be advantageously applied to the operation of a coke oven. For example, the output of the oven depends in general upon the number of pounds of coal which can be put in the oven at charging. It is known that the capacity of one battery of ovens was increased several per cent by slightly increasing the proportion of fine material in the charge.

Jan 1, 1928

By W. G. Miller, J. D. Scott, D. C. Sego

ABSTRACT: As part of an overall study of properties and processes influencing consolidation of oil sands fine tailings resulting from different extraction processes, self-weight consolidation tests were per-formed. Fourteen 2 m and 1 m high standpipe tests were instrumented to monitor the rate and magnitude of consolidation of seven fine tailings materials. Tests provided valuable information about the variation of consolidation related to differences in fine tailings material properties that result from a change in bitu-men extraction process (caustic versus non-caustic). In addition, the effect of adding a coagulant to caustic fine tailings was measured. Test results are presented and discussed in terms of consolidation rate long-term volume decrease, compressibility, and downward drainage. Non-caustic fine tailings had fasterinitial consolidation, which is important in tailings ponds for reducing storage capacity and returning decant water at a faster rate to the extraction plant. Similar results were obtained for caustic fine tailings with a coagulant addition. However, long-term settlement of the different fine tailings appears to con-verge to a similar value over time because it is then governed by effective stress.

Jan 1, 2011

By B. Holaday, H. McLaughlin

Orano Canada Inc. (Orano) operates the McClean Lake mill, located in the Athabasca Basin region of northern Saskatchewan. It processes high concentration uranium ore, delivered in slurry form from the Cameco Corporation operated Cigar Lake mine. After the ore slurry is leached at the McClean Lake mill, the leach residue solids are washed in a process known as counter-current decantation (CCD). This process uses six thickeners to facilitate counter-current washing of solids with diluted acid, flocculation and settling, as well as pumping the washed leach residue to the tailings neutralization circuit (TN), and the uranium laden aqueous to the solvent extraction circuit (SX). Challenges in settling the slurry in CCD started in early 2017. This is largely due to the variation in fines content of the slurry (D80≤75μm), and clay content. There are several changes that have allowed the mill to adapt to the evolving challenges of settling leached Cigar Lake leach residue. Flocculant selection and mixing, temperature effects, bed level management philosophy, and centre-well feed density are key parameters that have been explored as part of adapting to changes in Cigar Lake ore quality.

Jan 1, 2020

By Alexander Burns, David Dreisinger

The kinetics of the oxidation of uranium(IV) by oxygen gas in aqueous systems is dependent on acid concentration, oxygen partial pressure, and temperature. In order to better understand the relationship between these variables and the speed of oxidation, a series of experiments have been conducted where each parameter has been varied in turn. Data were collected continuously using UVVis spectroscopy, allowing for a detailed examination of the reaction rate over the course of each experiment. The data fit an overall apparent rate law that is 1.5order in uranium(IV), -2order in H+, first order in oxygen, and unaffected by uranium(VI). This relationship does not appear to hold for solutions with <0.2 mol/L initial acid, where a different kinetic mechanism appears to be dominant.

Jan 1, 2014

By Kerry Spickelmier

Editor&apos;s note: information for this feature was taken from the published APCOM proceedings. Computer trends, with special focus on the reasons for computer use, grabbed the lion&apos;s share of attention at the 23rd worldwide meeting on the Application of Computers and Operations Research in the Mineral Industry (APCOM 23). However, technical topics did not provide the meeting&apos;s sole focus. The last-minute inability of certain former communist countries to fund the travels of a few scheduled speakers was a reminder that science does not operate in a void. As with all technical progress, the APCOM presentations raised interesting questions regarding interrelated organizational dynamics and political and socioeconomic issues. Consider US Bureau of Mines (USBM) research to design an expert control systems to "duplicate" an experienced, "good" operator during automated underground roof bolting. In his presentation of the project, Takach, Jr. stressed the importance of preserving the ability to switch from automatic to manual drilling control. From a technical standpoint, this allows the expert system to "learn" from a good operator. As important, he said, is that this flexibility decreases the human operator&apos;s sense of being replaced by the machine. The question arises: Which will loom larger in union minds, increased operator safety through remote opera¬tion or the potential for total operator replacement? Like any new product, computer technology relies on marketing to aid its acceptance and use. Consider, too, a decision support system, by Schena and Gochin, for mineral resource management in a developing country. The authors said "the analysis permits the assessment of the overall socioeconomic consequences of mineral prospects and allows incorpo-

Jan 1, 1992

By W. E. Wrather

CURTAILMENT of production was a matter of far more serious concern to the oil industry through 1933 than the search for new supplies of oil. The huge reserves of crude, built up during past years, instead of inspiring a feeling of security, were viewed apprehensively. The status of past laws and court decisions seemed to guarantee to operators the right to produce oil at will, and this entrenched privilege was so widely adhered to that the market was-in a constant state of chaos. The more modern idea of the ownership of oil in place and correlative rights gained headway slowly, since usually there were enough belligerent producers, staunch believers in the old established order, to defeat the efforts of the majority who sought to&apos; introduce order and restraint. State regulatory commissions were unable to cope, with the rebellion among producers with the result that those who abided by proration rulings were penalized, while those who flouted the rulings and produced unrestrainedly were able to make profits on large volumes of flush oil even at low prices. This situation, known in the vernacular as the "hot &apos;oil" problem, became so acute that the industry was threatened with ruin. The low price for 36c A.P.I. in the Mid-Continent came in April. at 25c per barrel &apos;but gradually moved upward to the long-hoped for price of $1.00 per barrel in October, after the Federal Government had taken a hand in the matter and effectively allocated production among the oil producing states and materially curbed the "hot oil" runs.

Jan 1, 1934

By Simon D. Strauss

This article is part of a presentation Strauss made Dec. 3, 1988 at the sixth annual American Mining Hall of Fame (AMHofF) banquet in Tucson, AZ. At the banquet, the Mining Club of the Southwest honored Strauss by naming him the 1988 recipient to the AMHofF. (Industry newswatch, page 6). Introduction In the last two decades, there have been two previous periods of sharply rising copper prices. One was in 1973-74; the other in 1979-80. In both cases, a short period of high copper prices was followed by steep and prolonged periods of low prices. In the language of the market analyst, the high prices were called spikes. Is it likely, then, that three or four years from now the present price of copper will show up as a spike in the charts? There are substantial differences between the current position and the markets of 1973-74 and 1979-80. In 1973-74, US copper prices were subject to government-imposed price ceilings of $0.60 per lb through early December, 1973. These were increased to $0.68 per lb through May, 1974. Meanwhile, mines outside the United States were free of restraint. Rising demand in London pushed the price above $1 per lb in the third quarter of 1973. In early April 1974, it reached a peak of $1.50 a lb. In May of that year, the US ceilings were removed and the domestic price began to rise. What were the causes of this price strength? While ceilings held the domestic price below the world market, domestic consumers acquired all the tonnage offered by US mines. Meanwhile, in the world market, buyers feared prolonged shortages. The Club of Rome had warned that world economic growth would be limited by impending depletion of mineral resources. There was al so concern about a copper cartel that might increase copper prices even more. In early 1974, at a special United Nations session, developing-country spokesmen warned the industrialized world to expect high commodity prices. Also adding to the concerns of copper buyers was the fear that when US wage contracts expired in mid-1974, protracted strikes might ensue. The combined effect of this atmosphere was that consumers accumulated large amounts of copper, far above their normal carry. By midsummer, the position changed radically. While some strikes did occur in the United States, they proved short-lived. The most significant development was a massive economic recession. The energy crisis was causing enormous dislocations in the world economy. Construction activities were sharply reduced and automobile sales plummeted. Public confidence was shaken. Copper sales fell precipitately as consumers decided to draw down their swollen inventories. The price came down too. In April 1974, the London price- as noted-was $1.50 per lb. By the end of the year, it was down to $0.57 per lb. In 1973-74, the copper price rise was fed by fears of shortages, cartels, and strikes. In 1979-80, the market rose on the strength of good demand plus political and military instability. The price rise was also fed by inflationary trends, exemplified by speculation in precious metals. Prior to this second spike in copper prices, the market had been depressed despite economic recovery. Despite reduced US output, copper production in the rest of the world was increasing. Though consumption was rising, surplus stocks reached unprecedented levels. At the end of 1977, the aggregate of stocks at the refineries and in the exchange warehouses was 1.5 Mt (1.67 million st). That was more than three months&apos; shipments at then rates of consumption. In 1978, the statistical position improved. Shipments of refined copper that year were 8% greater than in 1977. The result was reduced visible stocks but -just as was to be the case in 1984-86 - the price remained depressed. In 1979, an even sharper drop in visible stocks occurred as shipments rose by another 4%. This time, though, the price responded. In December 1978, the price in current dollars had been less than $0.70 per lb. By the end of 1979, it was above $1 per lb. And in the first quarter of 1980, it averaged more than $1.20 per lb. Military and political developments were a factor. The hostage crisis in Iran was followed by the Soviet invasion of Afghanistan. To many, it appeared that war might result if the Soviets pushed on into Pakistan. At the same time, speculation drove gold and silver prices to incredible levels. As silver prices rose above $40 per oz), copper above $1 per lb did not seem unreasonable. Then, in March 1980, the precious metals price boom collapsed. Copper prices also retreated, though not as much. In February 1980, the copperprice averaged $1.32 per lb. By December, it had dropped to $0.85 per lb. In 1981 and 1982, the decline continued. The present copper situation Why is the current situation different from these two previous episodes of high prices? First of all, today&apos;s inventories are far lower than they were in either 1974 or 1980, when the price declines began. The stocks at refineries and in exchange warehouses are substantially less than they were then. More significantly, consumers today have very limited holdings compared with stocks they carried in 1974 and 1980. Even if faced with a downturn in their own business, copper consumers will not be able to stay out of the market. To the extent they have any business at all, they will have to buy copper. And on the supply side, there is also a significant difference. The year 1988 has been unusual. US production is up sharply, responding to higher prices. But production is little changed in the rest of the Free World. Indeed, several of the major producing countries have mined less copper this year than in 1987 despite the prices increases. Peru has had labor problems that have cut its output. Zambia and Zaire suffer from shortages of expatriate technicians, not to mention spare parts. They also suffer from the failure to maintain equipment or perform adequate development. In Chile, the two largest mines, Chuquicamata and El Teniente, have not met their production targets. Chuquicamata is struggling with high arsenic content in its ore. And, in late 1987, severe rockbursts hampered operations at El Teniente. In addition, depletion of some mines in Australia and South Africa has offset rising output at other properties. Indeed, when final mine output figures for 1988 become available, it may well be

Jan 1, 1989