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By John Hanna

The Mineral Resources Institute (MRI) has developed a unique process for selective fatty acid flotation of phosphate minerals from siliceous ores. The process takes advantage of preferential adsorption and high reactivity of fatty acid collectors towards apatite over silica surfaces under slightly acidic conditions of pH 5-6.5. The process was successful in upgrading various phosphate samples from Florida and North Carolina containing 7.7-15.3% P205 and 62.3- 77.2% Insol to concentrates assaying 28.1-33.1 % P205 and 4.1-9.9% Insol with high P2O5 recovery of 81.8-92.2%. Depending on the type of silica impurities present one or more cleaning steps, with or without sodium silicate, would be required to improve the grade of the rougher phosphate concentrate.

Jan 1, 1992

By Billy W. Parks

This paper reports on the first 2 years in operation of a special-purpose coal handling rig which provides blending, temperature reduction, and continuous, automatic mechanical sampling as part of midstream barge to ship coal transfers. Briefly reviewing some of the characteristics of coal handling peculiar to midstream transfers, the paper discusses how the most beneficial aspects of midstreaming were enhanced through the design of this blending and sampling rig.

Jan 1, 1986

By Augusto Andres Torres Toledo, João Felipe Coimbra Leite Costa, Luciano Nunes Capponi, Diego Machado Marques

Short-term mine planning to open pit requires defining diglines to orientate the excavation geometry. In deposits with multiple chemical variables, it is necessary to have more rigorous control over the feeding of the processing plant. This study analyzes the impact of incorporating multiple chemical variables, the risks generated by geological uncertainty, and the number and starting point locations of shovels in the sequential design of diglines. The objective is to maintain and preserve the low-grade variability, required tonnage, and continuity in sequentially selecting blocks. To achieve this, the probability distribution function of each chemical variable is used while attempting to maintain the ore grades as constant as possible. As it is difficult to maintain multiple elements with low variability simultaneously, the relevance of each chemical variable in the economic benefit is identified. Weights are assigned to signal the importance of each element based on its significance in the recovery process. Several diglines, consisting of sequential blocks, were generated on the same seed point to meet the weekly ore demand. Optimizing the stationarity of multiple chemical variables, accessing and reducing the geological uncertainty performed through geostatistical simulation of grades and transfers functions, considering the number and location of shovels, while meeting the operational restrictions of the selected blocks. The optimized digline with the multiple grades as stationary as possible is retained. The process is illustrated in a phosphate mine. The results show that the proposed method is viable and allows for a quick solution.

Jun 25, 2023

By Parris A. Lyew-Ayee

The Government or Jamaica has just completed agreements with four of the five bauxite/alumina companies operating in Jamaica. These companies are Kaiser, Reynolds, Alcoa, and Alcan, and the Agreements came into effect on February 1, 1980. One of the results of these new Agreements is the Acquisition of all company-owned bauxite lands by the Government and the rationalization of bauxite reserves.

Jan 1, 1980

By Richard E. Sabaski

The demand placed on the mining industry in the past 15 years for increased production, coupled with lower grade ore and higher cost capital, has resulted in a noticeable increase in grinding mill sizes. The pressure to increase mill size continues. During the mid sixty's and early seventy's, ?larger? conventional ball mills were in the range of 13 - 16-1/2 f t. diameter (4 - 5 m) increasing by the mid 70's to 18 ft. (5.5 m) diameter. At the same time, autogenous mills expanded from 24 - 32 ft. (7.3 - 9.1 m) to the present 34 and 36 ft. (10.b and 11.0 m) diameters. These size pioneers of 16-1/2, 18, and 36 ft. diameter mills from Allis-Chalmers have been free from structural problems, because they were analyzed, modeled, designed, and field tested to meet the challenge.

Jan 1, 1981

A viable mineral economy requires availability of economic deposits, the ability to exploit then, and protection of the public interests. The natural tendency for each party to consider only its legitimate self interests can lead to delays or deadlocks. The paper presents several viewpoints aimed at opening each party's mind to the ideas of others in the hope that negotiations might be more reasonable and rapid for the benefit of all concerned.

Jan 1, 1979

By K. A. Natarajan, M. R. Sabari Prakasan

"Biodegradation of sodium isopropyl xanthate using two types of bacterial strains, Paenibacillus polymyxa and Pseudomonas putida, is demonstrated. At concentrations higher than 50 mg/L, the presence of xanthate in the growth medium resulted in bacterial toxicity, retarding growth kinetics. Adaptation through serial subculturing in the presence of higher xanthate concentrations resulted in the development of xanthate-tolerant bacterial strains. Stress proteins secreted by bacterial cells grown in the presence of xanthate were isolated. Bacterial cells could utilize xanthate as a growth substrate, degrading xanthate species in the process. Acidic metabolic products generated by bacterial metabolism promoted efficient xanthate decomposition. Probable mechanisms for the biodegradation of isopropyl xanthate are illustrated.IntroductionDifferent types of alkyl xanthates (ethyl, isopropyl, amyl, etc.) have been used as flotation collectors in the concentration of sulfidic ores for several decades. Large quantities of waste water and xanthate-containing effluents are generated by ore flotation processes, posing considerable environmental challenges. Billions of cubic meters of such process waste waters are produced annually across the world, most of which are discharged to the environment, often without any treatment. Leakages and accidental release of xanthate reagents from manufacturing plants and during transportation and storage can also contaminate the environment. Residual concentrations of xanthate reagents are encountered in waste effluent, which are found to be toxic to aquatic life and unfit for human consumption (Harris, 1984; Okibe and Johnson, 2002). Further, direct recycling of such waste waters for plant operations can compromise water quality standards required for process operations. The presence of residual xanthate in recycled waters from flotation plants deleteriously influences flotation processes. Xanthate can be easily decomposed at low pH values; however, CS2, which is more toxic, will be produced by the acidification of neutral and mildly alkaline xanthate-containing solutions. Physico-chemical methods such as flocculation, chemical oxidation and decomposition and physical adsorption used to remove residual collector reagents from mill process waters are often expensive and not environment-friendly (Oliveira and Rubio, 2009; Cheng et al., 2012; Molina et al., 2013,)."

Jan 1, 2015

By Göksel Hızlı, Selim Ertürk, Ayşegül Bilen, Raşit Sezer, Cüneyt Arslan

The carbothermic reduction of celestite is the first step in producing many strontium products. The way materials move in the rotary kiln has an essential effect on the carbothermic reduction efficiency as well as the temperature. In this study, the reduction of celestite ore and excess carbon blend in a laboratory-scale rotary kiln was investigated. In the experiments carried out at three different temperatures, the rotational speed and slope of the furnace tube were altered, and their effects on the reaction efficiency were examined. The leachability of the reduced powders and the content of the unburned coke indicated the optimal parameters for the reaction.When the speed was increased to 10 rpm, the powders weremoremobile in the stack and could react more easily with the furnace atmosphere. According to the results, celestite can be reduced by carbon at temperatures of 1000–1200 °C, at rates of between 5% and 75%. The maximumreaction yield (75%) was obtained with a slope of 2° and a rotational speed of 6 rpm at 1100 °C.

May 7, 2020

By Klaus Schönert

In the analysis of comminution processes, it is necessary to have a detailed knowledge of such sub-processes as: (i) The transportation of the particles to the zone where they are stressed, (ii) The stressing of the particles to a level high enough for breakage, (iii) The removal of the fragments that are smaller than the limit size from the grinding zone, and (iv) The prevention of agglomeration of the fine fragments. The breakage phenomena of particles is the most difficult sub-process to understand. It can be understood only by applying the principles of fracture physics to obtain information about the stress-strain field in particles which are loaded either by compression or by impact, and by using this theoretical knowledge to interpret experimental results obtained from single particle crushing studies. It is not only of academic interest to know how a particle breaks, but also it is important for practical applications because it provides a basis for evaluating both the direction and limitation for any potential comminution improvement.

Jan 1, 1971

By Andrea Biagi, Elisa Comis, Gianluca Bella, Enrico De Panicis, Guido Barbieri, Matteo Giani

The Sotra Link Project is a major infrastructure project in Norway involving the design, construction, financing and maintenance of several underground and surface structures between Sotra island and the city of Bergen, among them 23 tunnel portals, 12.5 km of tunnels and a 900 m long suspension bridge. This paper describes the benefits in applying a Building Information Modelling (BIM) approach to tunnelling, from Early Design to the Detail Design Phase. The BIM application to the Sotra Link Project resulted in several improvements, such as efficient handling of clashes and inconsistencies, deeper understanding of effective design choices (reduction of errors), more efficient communication between designers, enhanced control of project quantities and costs. The advantages of the BIM approach during the ongoing Construction Phase are also explained.

Jun 23, 2024

By J. C. Wynn

J.R. Hillebrand From the abstract, "A realistic ore deposition model to serve as a conceptual framework." Further, on page 246, "The first area of study was the Josephine peridotite, now identified as an ophiolite terrane, located in northern California and south-western Oregon (Fig. 3). Here, it was felt that we could test the models shown in Figs. 1 and 2 and, if successful, expand the model and test it in other chromite districts in the US and around the world." My comments refer only to chromite deposits in Europe and the Middle East. First, I question that may chromite deposits occur in the idealized ophiolite section shown in Fig. 1. Second, although some podiform deposits (referring to morphology) have been important (Guleman, Turkey, for example), the stratiform deposits are of greater importance in tonnage and frequently grade. Examples include Nada, Yugoslavia; Bulqiza, Albania; Xerolivado, Greece; Saranovsk, Russia; and Abdasht, Iran. Reply by J.C. Wynn Mr. Hillebrand raises two issues that deserve a serious response. One issue is basically subjective and the other is ultimately political. First, the question of where (and how many) podiform chromite deposits are found in the idealized ophiolite section of Dickey (1975). The Dickey model is still perhaps somewhat controversial (Panayoutou, 1980), but our experience in the Josephine ophiolite of northern California (Wynn, 1980; and Albers, 1983) shows that the model works well there. Virtually all the chromite is found in dunite lenses in the tectonite peridotite (harzburgite). Since there are few complete ophiolites exposed in the world, the model will probably never satisfy everyone. The degree of acceptance is a function of any individual's subjective experience. Second, it is well known that stratiform chromite contributes more than 95% of the chromite reserves presently known in the world, and it could be reasonably argued that there is no point in exploring for or exploiting podiform deposits further. The title of the paper, however, was in part 'strategic minerals geophysical research'; chromite is considered a strategic and critical mineral of the US and many other industrialized nations. Stratiform deposits in South Africa and Zimbabwe account for most of the chromite reserves in the world. Unfortunately, experience in modern times with substantial price fluctuations and even resource cartels dictates the wisdom of identifying and maintaining a national chromite reserve, irrespective of the cost. An improved exploration methodology is an essential element in this strategic objective. References Albers, J.P., 1983, "Geological and Geophysical Studies of Chromite Deposits in the Josephine peridotite, California and Oregon," US Geological Survey Bulletin 1546 A-D, 118 pp. Dickey, J.S. Jr., 1975, "A Hypothesis of Origin for Podiform Chromite Deposits," Geochimica et Cosmochimica Acta, Vol. 39, pp. 1061.1074. Panayiotou, 1980, Proceedings, International Ophiolite Symposium, Cyprus, 1979, 781 pp. Wynn, J.C., 1980, "Exploration Geophysical Methods and Strategies, and Their use to Locate and Assess Small Mineral Deposits," Chapter 12 of Meyer and Carmen, eds., The Future of Small Scale Mining, McGraw-Hill, New York, pp. 75-83.

Jan 12, 1983

By Ben Roderds

The Waneta Expansion Project (WAX) is located near the existing Waneta Dam site at the confluence of the Pend d?Oreille and Columbia rivers, approximately 10 km (6.2 miles) south of Trail, BC, Canada. The WAX owners consist of a partnership between Fortis Inc., Columbia Basin Trust and the Columbia Power Corp. This design-build project was awarded to SNC-Lavalin in late 2010 and is expected to be operational in mid-2015. The WAX consists of a new 335-MW powerhouse, including two new Francis turbine units, each generating approximately 167 MW. The powerhouse is located downstream of the existing Waneta Dam, and will make use of excess water that would otherwise be spilled during the runoff season. Water will be funneled to the turbines through an intake structure and two 10.5- m (34.5-ft) diameter, concrete-lined Penstock Tunnels. A 10-km (6.2-mile) transmission line will connect the powerhouse to existing electrical grids. Redpath/FKCI Waneta Tunnelers (RFK) was subcontracted by the heavy civil contractor, the Aecon/SNC Lavalin (ASL) joint venture, to excavate the two penstock tunnels and install the cast-in-place concrete liner. RFK is a joint venture partnership between J.S. Redpath Ltd., an underground mine contractor located in North Bay, Ontario, and Frontier-Kemper Constructors ULC, a heavy civil tunneling contractor based in Nova Scotia, Canada. Since penstock tunnel excavation was planned using drill-and-blast methods with a significant grade of more than 17 percent, the combined experience of these two contractors was a perfect match.

Mar 1, 2014

By W. D. Elston, A. E. McLaughlin, G. B. Hampton, W. L. Barham, J. F. Murphy, W. H. Cundiff, J. W. Mulloy, R. G. Breuer, J. W. Shaffer

Introduction Alumina (aluminum oxide) is the material from which all the world's aluminum is produced. In the Western World, all the alumina is made from bauxite by the Bayer process. In the nearly 150 years since aluminum was first isolated by Oersted, the metal has grown from a laboratory curiosity to a position of major importance in the world's commerce. In terms of annual production rates aluminum is first among nonferrous metals. Oersted's discovery-reduction of aluminum chloride with potas¬sium amalgam-was improved on by Ste. Claire Deville, whose so¬dium amalgam reduction of aluminum chloride led to the commercial production of aluminum in France in 1855. Ste. Claire Deville's method prevailed until 1886 when Charles Martin Hall and Paul T. Heroult each invented a process for the production of aluminum by the electrolysis of alumina dissolved in molten cryolite. The inven¬tion by Karl Josef Bayer in 1888 of an economical process for making very pure aluminum oxide (alumina) from bauxite established the necessary link between known ores and the Hall-Heroult reduction process. Bayer's work completed the scientific base-the ore bauxite refined to alumina by the Bayer process (U.S. Patent No. 515,895), the alumina reduced to aluminum in the Hall-Heroult cell (U.S. Patent No. 400,766--upon which today's aluminum industry is founded. Small-scale production of aluminum in the U.S. began in 1888 utilizing the Hall cell. By 1903, bauxite properties and a Bayer process refining step had been incorporated into the production activities. On this base the aluminum industry in the U.S. has grown at an annual compounded rate of 15%. Since 1946 the annual growth rate has been 10%.1 The rapid growth of the industry is the result of many factors among which are the existence of widespread bauxite ore deposits; a sound and economic production technology; and the properties of the metal-lightness, strength, ductility, good electrical and heat con¬ductivity, and pleasing appearance, which lead to ever greater de¬mands for aluminum in an industrializing society. At the inception of the industry, the only market that could be found for aluminum was in the production of cooking utensils. How¬ ever, the rapidly accelerating industrial and technological development of the Western World soon created new needs for aluminum, and today aluminum is marketed in a broad range of industrial, commer¬cial, and consumer applications. The principal uses for aluminum are:' building and construction, 22%; transportation, 18%; electrical, 13%; packaging, 11%; consumer durables, 10%; machinery and equipment, 7%; other, 19%. The 1974 production of primary alumi¬num in the world was 14.5 million short tons, which at an approximate ingot price of 40¢ per lb puts a value of $11.6 billion on the industry product prior to fabrication. While aluminum is widely distributed in the earth's crust and is a major constituent of many rocks and soils, to date no method of extraction of aluminum from such nonbauxite material has been brought to commercial practice in the Western World. In the USSR alumina is produced by the complex processing of nepheline syenite, but elsewhere all commercial production of alumina is from bauxite. A brief discussion of recent developments and other processes for alumina is included in the subsection "Other Processes for Alumina," page 19-15. In early 1973, a major U.S. aluminum producer announced the successful development of processes for the production of aluminum from aluminum chloride. This achievement promises to exert a major influence on the future of the aluminum industry. In the initial com¬mercial application of this new technology, Bayer alumina will be chlorinated, and the aluminum chloride then reduced by electrolysis. Important claims for the new processes are lower energy requirements (one-third less than obtainable in Hall cells) and reduced labor costs. Capital costs are said to be no greater than for conventional plants. While the announced intention is to produce the aluminum chlo¬ride from Bayer process alumina, the new chloride reduction process will eliminate the other raw materials, carbon and fluorides, required by the conventional Hall cells. The electrodes in the chloride cell will not be consumed on the reduction process and the electrolyte will have, as the name indicates, a chloride rather than a fluoride base. 2. Bauxite Definition and Origin. Bauxite is a naturally occurring raw material composed principally of a mixture of one or more of the hy¬drated aluminum oxide minerals gibbsite (Al2O2 3H2O), boehmite (Al2O3 H2O), and diaspore (Al2O, - H2O), and impurities of silica, iron oxide, titania, and other various elements in trace amounts. It is an end or near-end product of chemical weathering. Depending on the amount of iron impurities, the color of bauxite varies from dark red and brown to pink to white. Some bauxite is finely divided, free digging earthy material, while other forms are dense and rocky, requiring explosives in mining. Many gradational forms exist. It is one of the most variable of mineral raw materials in chemical composition and physical appearance. It is generally believed that bauxite deposits resulted from intense chemical weathering of aluminum-bearing rocks or formations under tropical or subtropical conditions with alternating wet and dry sea¬sons. Topographic conditions were favorable for drainage and the in-situ accumulation of aluminum, iron, and titanium oxides. There was low to moderate topographic relief with a minimum of erosion during long quiet periods in earth history.2 The occurrence of bauxite is widespread and it has been found on all continents except Antarctica. Production was reported from 27 countries in 1974, at which time total world production was over 79 million metric tons. Of this production 76% was from seven coun¬tries-Australia, Jamaica, Surinam, Guinea, USSR, Guyana, and Greece-which ranked in that order of production. In Table 1 are shown typical compositions of bauxite from some

Jan 1, 1985

By W. D. Delahaut

Sampling tests performed at the Paradise Peak Mine compared various blasthole samplers and reverse circulation sampling methods. Statistical analysis of the data indicates that be-low-the-deck bag sampling produced a 24 to 29 percent error when compared to bulk sampling methods. Use of a chip pile wedge sampler reduced error to 17 percent. Reverse circulation sampling upgraded over bulk blasthole sampling by 7 percent for gold and 11 percent for silver. These results indicate that bias sampling conditions exist when small volume bag sampling is employed in production blasthole drilling.

Jan 1, 1991

By W. C. Meyer

Surface tension and its control are important in the concentration of ores by froth flotation, both in terms of producing the proper bubble size distribution and to render the ore surface of interest hydrophobic such that adhesion to a bubble will take place. The influence a substance has on surface tension has traditionally been measured using static, equilibrium techniques. Yet many applications such as flotation involve rate-related effects of surface tension where equilibrium values are not reached. In the time frame of 1 - 300 seconds, aging effects have been noted for bubbles formed in dodecylamine acetate solutions; a slow decrease in surface tension occurs until an equilibrium value is reached, as studied by Finch and Smith (1972). Since stationary bubbles do not exist in flotation cells because of the turbulence generated by agitation and aeration, it is more likely that the chemical composition of the bubble is determined during its formation, under dynamic conditions. The chemical composition is extremely important because the induction time required for a particle-bubble entity to collide and adhere to each other is augmented by favorable surface tension (wetting) proper- ties between the surface of the particle and the bubble air-water interface or envelope, as considered by Mackenzie and Matheson (1963). Finch and Lyman (1976) have established that the probability of a "permanent" attachment taking place during this contact time is aided by the ability of an oil droplet (viz. bubble) to relieve non- equilibrium surface tension effects which are involved in the water-thinning process. This Maragoni effect, or surface elasticity, can be considered in the context of particle agglomeration addressed by Kao and coworkers (1975). Water drainage leads to the formation of a collector-frother meniscus appearing between the colliding entities, arising from their combined partial immiscibility in the water phase and promoted by hydrophobic bonding within the interface. Together they constitute a liquid bridge whose force of attraction drawing the particles together is proportional to the interfacial tension existing between the water phase and liquid bridge. This adhesive force shows an approximate linear decrease with separation distance until rupture occurs, that is, FX = Fmax (1 ? X/Xr) (1) for a distance of separation X and rupture distance G. The greater the surface elasticity of the bubble, the greater will be the rupture distance and the better will be the force of adhesion. Since van den Tempel (1965) has related surface dilational properties of bubbles to the elasticity, E, of the film as

Jan 1, 1983

By Enrique Rubio Esquivel, Matías Fuentes Bustamante

The transition from open pit to underground mining represents a key strategic challenge in modern mine planning. This paper presents a multicriteria and multivariable methodology to plan such a transition, integrating technical, economic, environmental, and social considerations. The proposed framework focuses on risk reduction (de-risking) through the identification of alternative development paths, the use of stochastic simulation to model geological and technical uncertainty, and different mining strategies such as methods, production rates, sequence, etc. for ultimate underground implementation. The study summarizes the limitations of traditional planning methods—which usually treat the open pit and underground mine designs as independent processes—, also often it considers a single mining method and production rate for the underground option. Instead it is proposed an integrated approach that leverages synergies between both mining methods and scalable production rates. Also the proposed methodology incorporates the definition of critical variables (geotechnical, economic, and social, among others), the construction of multiple operational and technological transition paths, and the evaluation of each path under criteria of economic attractiveness and practical do-ability (capacity to be executed). Using simulation tools (SIMPLAN for operational performance and SIMVAL for economic evaluation), probabilistic distributions of the different path are obtained, enabling the quantification of the project’s Value at Risk (VaR). A subsequent multicriteria analysis weights the expected profitability against the feasibility of execution of each alternative, producing a decision matrix that provides a framework for evaluating the different project path. As a result, the proposed approach identifies OP→UG transition strategies that maximize business value by capturing remaining resources while minimizing financial and operational risks. Finally, strategic conclusions and recommendations for the industry are provided, emphasizing the importance of early transition planning even challenging the open pit sequencing of the latest push backs by introducing early underground operations. Future work includes strengthening the methodology—such as integrating real-time analysis and adaptive decision-making—and providing recommendations for its application in various mining operations. In summary, this paper delivers a technical and professional framework to guide mining companies on when and how to carry out a successful transition from open pit to underground mining, balancing resource recovery with financial, operational, and social security.

Feb 22, 2026

By Donald E. Zipperian

The studies described in this paper have established that flotation conducted in a column cell provided with gas generation by aspiration into surface tension lowered water, may considerably increase the efficiency and particle size range of a flotation process. Operation of a DEISTER FLOTAIRE ® Cell at several Southwest United States flotation plants under continuous rougher, scavenger and cleaner conditions has demonstrated the main positive features to be: (a) higher capacity per unit volume than conventional flotation equipment, (b) improvement of flotation of plus 0.210 m particles, (c) improved flotation of particles minus 0.037 m.

Jan 1, 1984

By CADEN VITTI, Barbara J. Arnold

Mine tailings, the byproduct of mining and mineral processing, are increasingly mass produced as a result of increased demand for metals and minerals as well as the advancement in technology that allows for the exploitation of lower-grade ores. Lower grades can increase the volume of tailings that may contain new gangue minerals that should be evaluated for the presence of critical minerals and other valuable metals. The practice of reprocessing, while relatively new, is crucial to reducing environmental damages, obtaining valuable critical minerals from waste, and contributing to more sustainable repurposing and disposal methods. With the increase in tailings dam failures in recent years, there is a large motivating factor in remining and removing the potential hazard to benefit the safety of potentially impacted communities. In analyzing the perspectives of various domestic and international studies, this literature review will determine the feasibility of reprocessing and reutilizing mine tailings waste for a more sustainable future while exploring current practices that have benefitted ecosystems and communities.

Jan 1, 2022

By Richard Addison

Rosario Dominicana, S. A. operates an 8,500 tonne per dayopen pit gold/silver mine in the Dominican Republic on the Caribbean island of Hispaniola. The mine is located in an agricultural area which is also an earthquake and heavy rainfall zone. In the 64 years from 1910 to 1974 there were 19 earthquakes within 300 km of the mine in the range of 6 to 8 on the Richter scale and the most recent earthquake in this range occurred in March, 1979. Average annual rainfall in the area is 1.7 m and is distributed throughout the year. Safe and environmentally sound tailings disposal in such conditIons has demanded the buiIding of an extremely strong dam wall and use of a fail-safe system of tailings disposal and solution reclaim. The type of dam, the system of tailings disposal and solution reclaim comprise an interesting example of the manner of handling tailings for a medium tonnage mine. The system is relatively costly but does assure a long-term, safe and trouble free structure and operating system. General views of the dam wall and tailings pond are shown in Figures l through 4.

Jan 1, 1980

By John H. Lichtblau

There are three parties to the oil imports controversy: the domestic oil producers, whose side has just been ably summarized by Mr. Jameson; the oil importers; and the public. Domestic producers and importers are both motivated by economic self-interests, that is by their natural and legitimate desire for profit maximization, in their respective positions. Thus, domestic producers, rightly, regard every barrel of imported crude oil (with the exception of some specialty crudes) as a displacement of a barrel of their own crude. Hence, the lower the import Level the better they like it. Conversely, U .S. refiners whose plants are located at the seaboard or at certain inland waterways generally welcome a higher level of imports because refiner profits are based primarily on the spread between the crude oil price and the refined products price, since crude oil represents by far the refiner?s largest cost factor. The relatively low cost of foreign oil means therefore higher profits to those refiners able to process such oil, This applies particularly to integrated companies whose own domestic oil production is insufficient, to meet their refinery requirements but who have developed ample low-cost foreign oil supplies.

Jan 1, 1962