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By Nelson Rivera

El presente texto analiza la crisis económica y su relación con el Banco Minero. Para ello, se revisa las dos últimas recesiones económicas que tuvo el Banco entre 1975 y 1982, donde la crisis se agudizó por una caída en los precios de los metales y una inflación de costos que no pudo ser transmitida al precio de venta. Como consecuencia de ello, las empresas mineras que tuvieron préstamos, acusaron pérdidas en sus ejercicios e incumplieron en el pago de sus obligaciones. Como medida anti-crisis, el Banco Minero estableció comisiones de alto nivel para evaluar las situaciones y recomendar la dación de dispositivos legales que permitieron asistir a los Pequeños y Medianos mineros en la restitución de liquidez mediante préstamos sobre liquidaciones a precios deprimidos, Asimismo, generó la consolidación, refinanciación y moratoria de los clientes que estaban en suspensión de pagos de las obligaciones contraídas con el Banco Minero y la creación de líneas de crédito especiales para la Pequeña Minería.

Mar 1, 1985

By Gerald C. Smith

Introduction Newmont Mining Corp.'s Carlin Gold Mining Co. mines gold ore and waste material from four open-pit mines in Northeastern Nevada. Combined production rate is 24.5 Mt/a (27 million stpy). The company is producing gold bullion from the 2.4 kt/d (2600 stpd) Carlin Mill No. 1. and the 2.3 kt/d (2600 stpd) Maggie Creek heap leaching plant. In August 1985, the 6.3 kt/d (7000 stpd) Carlin Mill No. 2 at Gold Quarry came on-line. The total combined throughput of 11.2 kt/d (12,000 stpd) will make Carlin Gold Mining one of the largest US gold producers. Feasibility studies are underway to increase the total gold out-put from Gold Quarry. This will be done by adding a continuous dump-leaching process that will recover gold from lower grade ore. History In 1961, Newmont exploration geologists located claims in the Lynn Creek mining district near Carlin, NV. An exploration drilling program revealed significant gold mineralization. A stepped-up drilling program revealed an ore body with an estimated 10 Mt (11 million st) of ore containing 109 t (3.5 million oz) of gold. Test results in 1963 allowed metallurgists to develop the flowsheet and design for a 1.8-kt/d (2000-stpd) countercurrent decantation (CCD) cyanide plant. Carlin Gold Mining Co. was formed to operate the property. Carlin purchased its first mining equipment in 1965. This consisted of two Bucyrus-Erie 2.7 m3 (3.5 cu yd) shovels and nine 27.2 t (30 st) Wabco Haulpak trucks, two Inger¬soll-Rand track-mounted drills, one Chicago Pneumatic T-650 rotary drill, one rubber tired Michigan 280 dozer, one Caterpillar D-8 36A track dozer, one Caterpillar 16 motor grader, and the necessary ancillary equipment. The fleet was capable of mining 3.2 Mt/a (3.5 mil¬lion stpy) working two eight-hour shifts, five days a week. In 1967, one P&H 1500 3.8 m3(5 cu yd) diesel electrical shovel and three 59 t (65 st) Dart trucks were added to the fleet, along with a Chicago Pneumatic rubber tire mounted rotary drill. This equipment addition increased the mining capabilities to 5.7 Mt/a (6.3 million stpy). Three separate pits, the Main, East, and West, within a 1.6-km (1-mile) radius of the Carlin mill were being mined. The crew consisted of 46 hourly men and three supervisors. This equals 497 t/ total hourly manshift (548 st) or 407 t/total manshift (515 st). Rising gold prices in the early 1970s allowed lower grade deposits to be mined at greater distances from the mill. The Boot-strap pit, 19.3 km (12 miles) north of Carlin, was started in 1973. Two Hough 45.4 t (50 st) front-end loaders, four Wabco Haulpak 45.4 t (50 st) trucks, and a second track type D-8H dozer were added. The higher grade ore was trucked to the Carlin mill using three

Jan 11, 1985

M.S. Azun I have many objections to the content of the author's paper. Before discussing it, however, I would like to repeat the property of semivariogram function. Second order stationary properties of regionalized variables (ReV's) such as semivariogram function y(h) are perfectly known in geostatistics. Also, the kriging equations in the language of mathematical statistics using second order stationary properties are well understood. However, the way to use the sample (estimated) semivariogram function in any one of the kriging procedures is vague. The sample semivariogram function is given as follows: [ ] where N is the total number of samples, Xi is the sample value at the i - th location, Xi+h is the sample value at the i + h - th location, and h is the distance among the samples. An estimation variance of sample semivariogram function of first lag is smaller than that of higher order lag. The theoretical semivariogram function reaches the variance of samples asymptotically. But this is not easily observable because of the larger variation involved in the estimate of semivariogram function. In general, an estimation procedure is done for h = 0, 1, 2, up to the greatest integer less than N/2, even though sample semivariogram function can be computable through N-1. After estimating semivariogram function, the critical question of how to model sample semivariogram function arises. As seen in the above equation, sample semivariogram function is discrete and can be smoothed by the model being selected. Therefore, modeling of sample semivariogram function is the most important step in geostatistics. It not only smoothes a discrete function but also affects the results of the kriging procedure. When the only aim is to model the semivariogram function, which is the basic point of the author's paper, one can employ any fitting techniques, such as curve fitting, or any arbitrary functions, which are called submodels in the paper. The term "arbitrary function" is used rather than "submodel" because there is no basic understanding of developing them. The author suggests that the sum of those submodels can also be used for the modeling of sample semivariogram function. The combination of any arbitrary functions brings many problems instead of giving an insight of the domain structure considered. The author used two arbitrary functions and the nugget effect in response to sample semivariogram function (Fig. 10). For the same example, he stated that the parameters involved in the mixed arbitrary function model can be accepted when the discrepancy between sample semivariogram function and the model is small visually. For verifying the fitting behavior of any selected model, one should not be contented with the visual satisfactory. Some statistical measure such as goodness of fit has to be used. The author's practice is no more than an exercise in curve fitting without any fundamental understanding or conceptualization of the underlying physical mechanism. Furthermore, the selection of any model is not an easy task if the purpose is the search for the "best" response to the observed second order properties of ReV's. I suggest that the Markovian model (Azun, 1983), on the basis of a theoretical understanding of underlying mechanism, which gives more information about the occurrence of regionalized variables, is used to respond all properties of ReV's. There are a lot of problems for modeling of one-dimensional sample semivariogram function. Thus, it is not appropriate to go to higher order dimensional sample semivariogram function modeling. In the meantime, I would recommend that one can connect the values of standardized sample semivariogram function rather than simple values of semivariogram function in the two-dimensional estimation. The standardized values can be computed in dividing the semivariogram function value by the number of sample pairs involved in each lag regardless of the directions. In conclusion, geostatistics is an interdisciplinary area in mining that uses the principles of mathematical statistics. Thus, it should not violate any probabilistic and statistical rules. When Matheron was developing the theory of geostatistical study in the early years of geostatistics, many mining people had a reservation accepting the geostatistical tools. However, this does not mean that we, the geostatisticians, might try to convince those people using some "strange" tools or rules as some authors implied (Baafi and Kim, 1984). Instead, we have to develop and explain the geostatistical tools staying only in the framework of statistical concepts and properties. References Azun, M.S., 1983, "Stochastic Process Modeling of Spatially Distributed Geostatistical Data," Columbia University, Ph.D. Thesis. Baafi, E.Y., and Kim, Y.C., 1984, "Discussion - Comparison of Different Ore Reserve Estimation Methods Using Conditional Simulation," Mining Engineering, Vol. 36, No. 3, p. 280. Reply by J.M. Rendu The interactive method proposed by Rendu allows practitioners to develop semivariogram models that take into account not only the numerical information obtained by sampling, but also highly significant additional information that often cannot be quantified. The geology of the deposit - including hypotheses concerning its genesis, sampling methods, assaying methods, and mathematical methods used to calculate the semivariograms - all have an influence on the numerical results obtained and on how these results should be interpreted. If all the information concerning the spatial distribution of values in a mineral deposit was contained in the sample values, it could be argued that statistical techniques alone would produce optimum models. However, this is rarely, if ever, the case. Methods that allow the user to take into account his experience and his geologic understanding of the deposit should not be rejected for the sake of theoretical statistical purity.

Jan 11, 1985

By Ray E. Harris

Introduction A resource of more than 122 Gt (134 billion st) of minable trona and mixed trona and halite underlies an area of about 3400 km2 (1300 sq miles) west of Green River, WY (Culbertson, in preparation) (Fig. 1). In 1982, the total domestic consumption of soda ash (refined trona) was 6 Mt (6.7 million st) (Kostick, 1983). About 90% of this came from Wyoming trona. This enormous deposit occurs in the Wilkins Peak Member of the Green River Formation that is of Eocene age. This formation is derived from sediments deposited in a large lake named Gosiute. Lake Gosiute occupied the Green River Basin in southwestern Wyoming some 38 to 54 million years ago. The Wilkins Peak Member represents a restricted, evaporite-rich cycle of deposition when the trona deposits were formed. A total of 42 trona beds are known. Of these, 25 are of sufficient thickness and extent to be considered minable (Culbertson, in preparation). The production of sodium compounds from the trona deposits in the Wilkins Peak Member began in 1896 when wells were drilled within the present boundaries of the town of Green River. The purpose of the drilling was for extraction of sodium carbonate brines. Sodium carbonate (sal soda) was removed from these brines at a plant in Green River. Bedded trona was discovered in 1938 in a core from an oil well drilled south of Westvaco. In 1947, the underground mining of trona began. Production has continued from 1948 to date. Currently, five companies are mining trona and producing soda ash from the Wilkins Peak Member in Wyoming. Additionally, Allied Chemical Co. mines and processes trona for Church and Dwight's sodium bicarbonate (baking soda) operation in Green River. Competition in the soda ash industry depends primarily on the efficiency of mining and refining, allowing for lower-cost production. Newer plants and mine designs should increase efficiency. Solution mining holds promise as an even lower-cost method of mining. Employment in the soda ash industry is declining since the newer mining and refining methods are less labor intensive. Declines in employment, however, may be offset as production increases. Due to the large resource, the availability of minable trona should not be a problem for perhaps hundreds of years. Geology of Wyoming trona deposits Forty-two beds of trona or mixed trona and halite occur in the

Jan 10, 1985

By G. T. Lineberry, L. Adler

Due to safety-imposed constraints on clearances for mobile bulk handling equipment, it is necessary to optimally select a unit based on speed and size. The unit cannot be both large and fast. Since output is proportional to both size (or capacity) and speed, the combination must be carefully examined to maximize output. A simple graphical procedure and a calculus-based solution are presented to accomplish this. While the procedure applies to all mobile bulk handlers, as an example of the solution technique, attention is focused on shuttle cars. Background Major variables To fully define a bulk handling problem, the conditions, equipment, and activities must be characterized. The conditions and activities, when lumped together, are termed "encumbered space," since they "act to impede motion, as with a burden" (Lineberry, 1979). The insertion of mobile bulk handling equipment into what is already a difficult set of conditions and activities compounds the state of encumbrance, as limited space is competed for by many normal and life support systems. Long (1972) recognized the effects of design criteria, including road width, on haulage vehicle speed and, therefore, on production. Velocity -clearance curves Velocity-clearance curves are either available or can be constructed in the field. A preliminary set of curves for average conditions and activities is shown in Fig. 1, where clearances are only for the side of the vehicle (Lineberry and Adler, 1984). These curves set the safe speed limits for a vehicle operating at given clearances, under given conditions and activities. When feasible, velocity-clearance curves should be constructed through field measurement and observation. Curve construction should also consider haulway roughness, distances, and operator skill, as well as loading and dumping characteristics. It should be noted that haulage capacity determination is a total systems problem, not one just dependent on velocity and clearances. Production requirements and company capabilities also influence capacity determination.

Jan 10, 1985

By C. P. Mangelsdorf

Introduction The use of frequency of vibration measurements to determine tension has long been accepted by industries that use electrical or stranded cables of wire ropes in their operations. In contemplating how to determine the tension in chords of a roof truss, it seems almost inevitable that a similar approach should be investigated even though there are some important dissimilarities in physical behavior between a chord of a rod-type Birmingham truss and a stretched wire rope. While the dominant feature of both types of behavior is the existence of tension, the bending resistance of the vibrating truss chord cannot be ignored. And it is common to have attached to the chord, pieces of hardware (turnbuckles, extension sleeves, wedge boxes) that represent concentrations of mass not usually found in a vibrating wire rope. Analytical solutions to the problem of vibrating wires or beams can be found in the literature on vibrations (Timoshensko, 1955; Den Hartog, 1956). But in every case, at least one of the ingredients of the vibrating truss chord is missing. The presence of axial tension, or bending resistance, of concentrated masses and of end conditions peculiar to truss chords is a combination that appears not to have been dealt with before, although the techniques for dealing with it are commonly known. The purpose of this note is to report the results of a project to measure and calibrate such frequencies. The work was conducted by the University of Pittsburgh under the sponsorship of the US Bureau of Mines. Field observations Tests were conducted on 24 different truss installations. The first 18 trusses were installed in shale roofs above Kentucky No. 9 seam and Illinois No. 6 seam. The remaining six were placed against the competent sandstone over the Pocahontas No. 3 seam in West Virginia. Chord tension was determined by two electrical resistance strain gages, in series, applied diametrically opposite to one another on the rod before tensioning. Due to the combined effects of inexact gage placement, rod bending and residual torsion in the chord due to tightening, errors in tension as high as 1780 N (400 lb) were reasonably possible. Due to faulty soldering or damage, three of the first 18 trusses and one of the final six were rendered completely unreliable. In addition to strain, the first natural frequency of vibration was observed to the nearest 0.1 Hz. Dimensions recorded included the span between contact points at the bearing blocks (Fig. 1) and the locations and amount of excess rod and rod gap at the wedge box and turnbuckle, respectively.

Jan 9, 1985

By C. F. de Mendonca, T. Kater, R. P. de Souza

The authors are to be commended for finding a material for pellets binding that we were unable to uncover during the investigations that led to US Patent No. 3,748,116, “Method for producing metallic iron powder from iron ore concentrate, ” July 24, 1973, by G.G. Reed, Jr., J.M. Karpinski, and S.V. Fox. This patent concerns a method of processing “super’ ‘-concentrates prepared from magnetite or “blue dust” into molding-grade metallic iron powder for use as a bulk commodity, in contrast to current methods which produce small batches that are custom-blended with additives and/or alloye to customer specifications. The one thing we had not found at that time was an organic binder (mineral-matter-free ) that would allow induration to produce hardened pellets that would survive SL/RN Direct Reduction. Peridur appears to provide this missing link needed for large scale (200 t/a, or 220,460 stpy) single line plant capacity consistent with a low market price to ensure greatly broadened use of metallic iron powder. I hope that industry will adopt this combination so that metallic iron powder usage can fulfill its potential

Jan 9, 1985

By D. Gignac, P. A. Studemeister, H. Koza

Two epiclastic horizons in an Archean volcanic sequence host the gold occurrences on the Dunraine property near Wawa, Ontario, Canada. The Grace horizon of cherty and pelitic tuff strikes north-northwest and dips east. Native gold occurs with arsenopyrite in bedlike and podlike bodies of quartz lenses and stringers set in a pelitic matrix. The Parkhill horizon of lithic graywacke with associated flow-breccia strikes southwest and dips south. Native gold occurs with minor sulfides in similar bodies of quartz erratic within the Parkhill horizon. The auriferous bodies occupy paleotopographic channels and troughs within the two horizons. The former producers are the Parkhill mine with 1689 kg (54,300 oz) Au, Darwin mine with 473 kg (15,200 oz) Au, and Van Sickle mine with 48 kg (1536 oz) Au between 1902 and 1944. The gold occurrences are syndepositional with the host volcanic sediments laid during a pause in explosive volcanism. Fumaroles along steep gullies on the flank of a subaqueous volcanic center precipitated aprons of auriferous silica-sulfide mud. Downslope slumping resulted in exhalative debris flows; gold concentrated in flexures and depressions along stumpage channels. Renewed explosive volcanism covered the auriferous sediments with pyroclastic tuffs, arresting the slumping of in situ fumarolic deposits.

Jan 9, 1985

By K. A. Grace

K.A. Grace's article advocates usage of the terms describing resources as defined by the US Bureau of Mines (USBM) and the US Geological Survey (USGS). Originally recommended in 1943, the terms were revised in 1976 and again in 1980. Mr. Grace further recommends that the term reserves should be severely restricted and that it should encompass mining and processing factors. The list of references quoted in the article does not, however, mention the study concerning reserves that was made over a period of almost four years by a joint Committee on Definitions. This committee was sponsored by three societies - the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the Society of Economic Geologists (SEG), and the American Institute of Professional Geologists (AIPG). Most of the detailed work was done by a working party appointed by the Society of Mining Engineers (SME) of AIME. After studying previous definitions in the US as well as in the United Kingdom, Canada, Australia, France, and other European countries, the following definitions were proposed and accepted in 1974 by the SME board of directors. (Ore reserve definitions in Rhodesia, South Africa, or New Zealand were not mentioned as having been reviewed.) Table 1 lists definitions from MINING ENGINEERING, July 1975. Notice in Table 1 it was mentioned, under Resources, that the definitions of reserves were recommended for the purposes of commercial evaluation. It was further stated that the terminology adopted by the USBM and the USGS, as released to the public, covering resources, was recognized as such. Mr. Grace also recommends that reserve calculations should allow for future losses in ore tonnage, ore grade, milling, and smelting. Unfortunately, it might take years to develop a prospect after it has been discovered. Mining methods have to be tested before being finalized in order to know what tonnage of ore is going to be lost, or how much dilution is likely to occur. The same problems are present in concentrating or in smelting. Operating mines usually know how mined grade compares with ore reserve grade. They can usually predict fairly closely what their final metal recoveries are probably going to be. It is, however, expecting too much to have to delay quoting reserves from say a recently drilled prospect. Any responsible mining geologist or mining engineer (or company for that matter) should state several things about an ore reserve calculation: that it is or is not a preliminary estimate only; that estimated grades have not been diluted to allow for a future, as yet unknown, mining method; that metal recoveries are or are not only tentative, based perhaps on drill hole samples only or on no metallurgical testing at all. Reserves of a partially explored prospect are always quoted when it becomes necessary to raise capital. If they are described as preliminary only (really just tonnage and grade estimates and not true "reserves") in addition to being accompanied by some of the items just mentioned, nobody is going to be misled. If, on the other hand, a report by a member of the SME or SEG is intentionally misleading, the individual must be reported and eventually disbarred from his or her society. To summarize, let us stay with the definitions of ore, ore reserves, and related terms as recommended and accepted by SME. I might add that on occasion I have used a fourth category in my ore reserve calculations, namely Geologically Possible Ore. This category is more or less the same as Inferred ore defined by the USBM and USGS. I have never given a grade to this category, which may be based only on geological mapping, geochemical sampling, or geophysical traversing.

Jan 8, 1985

By Paul D. Tomlingson

Part two of this two-part series covers the use of an integrated information system with administrative information, including error and absentee reports as well as open work files. Part one (ME, July, page 650) discussed conceptualizing and developing a maintenance information system. It explained what information is needed to manage such a system.

Jan 8, 1985

By Adam H. Zimmerman

Introduction Noranda, like similar businesses, is suffering the pain of previously unheard of currency relationships, a cost structure built in better days, and conditions of gross oversupply possible in almost any commodity. Indeed, it does seem like the worst of all possible worlds is out there before us. To understand a Canadian natural resource company, you must know how the country is organized. So far as natural resources are concerned, Canada is not Canada. Canada is 10 provinces and each own the resources situated therein. Thus, the conditions of extraction, exploitation, and operation are all set by the province, while the conditions of trade and currency are set by the Federal government. This means that what may be the rule in Newfoundland may not be the rule in Manitoba or British Columbia. The second thing is that the Canadian currency has been a satellite of the US dollar for a long time. This means that we hold the unenviable and unjustified position of being the country with the second strongest currency in the world. What this has meant to us is what it has meant to an American operator. Since 1980, a pound of copper fetches 214% more for a Chilean than it does for us and a pound of zinc 115% more for a Belgian. From an American point of view, Canada is favored because its dollar is valued at 25% to 30% less than the U.S. However, because of industrial indiscretions in years past, Canada has a locked in labor cost disadvantage that is very hard to cope with. Canada has a unique situation with its labor unions. Many of the unions are, or have been, internationals and therefore gained undue strength in early days. Canada has a third political party of socialist persuasion. It is entirely funded by dues from laor union members. Thus, we have a politicized workforce. And finally, we have a public service that has the right to strike. This had made the public service unions by far the strongest now in Canada. What this means to the mining industry is that there is somebody out there blazing the trail. The unrelenting power of these public service unions probably creates a climate more conducive to excessive wage settlements in industry than would otherwise be the case. Study, Work, and Pray So what do we do when times get tough? In simple terms, we study a lot, we work harder, and we pray a great deal. We study a lot in terms of learning hitherto unknown strengths and weaknesses of our products, processes, and operations. We work hard in the sense that we do everything possible to improve our productivity. And we pray a lot because, so far, anything else we have done has not been enough. Some years ago, Noranda recognized that its principal base and precious metal operations were diminishing. To provide for the future, we should branch out into other resource type operations. These might be countercyclical and also perhaps a little more permanent. For this reason, Noranda entered the potash, aluminum, and forest products businesses. This, of course, was a 'brilliant' strategy that was much applauded in its early days. We built an excellent potash mine, the smallest inte-

Jan 6, 1985

By R. A. Jankowsi, S. K. Ruggieri

Airborne respirable dust levels on longwalls can be reduced if operators approach the dust control problem in a logical and fundamental manner. This can be accomplished through the proper application and continued use of effective dust control techniques. The Bureau of Mines is currently assessing the effectiveness of longwall dust control techniques in use today to provide mine operators with guidelines for selecting the most appropriate control technology. This paper presents a fundamental approach to the problem of shearer dust control. Three dust control techniques to be discussed are: deep cutting/increased pick penetration for reducing the amount of respirable dust generated; drum water sprays/improved water supply system to suppress the amount of airborne respirable dust; and improved external water spray system, the "shearer-clearer," to push the dust close to the face. The techniques have been evaluated in field trials and have been shown to be both practical and effective in applications to control shearer generated dust.

Jan 6, 1985

Diesel powered machines are doing some specific operations in the cyclic order required by the technical process. The dynamics of this process in certain conditions has an essential influence on environmental health conditions in the working area. The main purpose of this paper is to show, using computer simulation, how the movement (dynamic) of diesel vehicles effects environmental health standards and also how to determine the required air quantity for ventilation.

Jan 6, 1985

By Frank W. Luerssen

Introduction "Austerity" is perhaps an overly generous description of the past three years in the American steel industry. Steel plants operated at an average of only 57% of their capability in 1982-84. The dismal losses for last year are still being totaled. But during the two years before this period, American steelmakers recorded an aggregate net loss of a staggering $6.8 billion. Steelmakers responded by closing numerous marginal facilities. And production capability was cut by 13.6 Mt (15 million st). Capital expenditures still averaged $2 billion annually. But this was inadequate to maintain the existing base of steelmaking facilities. The general economy experienced a satisfactory recovery during this period. American steel, however, continued to suffer from a lagging recovery in the capital goods sector. This was due to record penetration of its domestic market by imports and from very weak realizing prices on the volume that was available. In addition to the direct influx of offshore steel products - which itself depressed prices - the industry also became painfully aware of the growing importance of "indirect" imports. These came in the form of steel-containing producer and consumer durables. Industrial equipment and autos fabricated from foreign steel accounted for the equivalent of 6 Mt (6.5 million st) of lost market opportunity for domestic steel-makers last year. That is over and above the 23.5 Mt (26 million st) of direct steel imports. Given these factors, Inland Steel was not spared from the threeyear downpour of red ink. Despite its record of continuing modernization in steel, our single-plant location in the world's best steel-consuming market, and the high proportion of consumer durables related products, such as cold rolled and coated sheet in our mix, Inland suffered aggregate losses of $277 million during the 1982-84 period. Strategic Planning The foregoing establishes a perspective - a base from which we have restructured our view of the steel industry, and of our own role within that picture. Until possibly two years ago, this present weakness in steel demand was viewed around the world as an aberration, eventually to pass. By contrast, it is now recognized that austere times are the normal steel environment. The topic here is management of resources. This implies an emphasis on strategic planning. It is worthwhile to examine some of the more critical assumptions that were driving strategies among a number of steel companies just before the 1980s. Those projected characteristics of the future steel environment were arrived at through painstaking analysis. They were carefully and heavily quantified and were generally shared by outside observers and our peers within the steel industry. • First, the assumption was made that domestic steel demand would continue to grow at an average rate of 2% per year. • Second, it was assumed that this growth in the American market would continue to be filled predominantly by US mills. It was believed that increases in steel and steel-related demand overseas would absorb much of the ominously growing capacity of third

Jan 6, 1985

By Wilfred P. Schmoe

Introduction An integrated oil company has two options in approaching strategic planning. It has to decide whether it is in business for the long-term. I state this in all seriousness. Those who help manage public companies have the responsibility of good stewardship of other people's money. We must decide whether continued investment in our basic business will generate a reasonable rate of return. With a world surplus of petroleum production capacity, and continuing downward pressure on prices, this question should be addressed by all oil companies. And a positive answer is not necessarily a foregone conclusion in all cases. The decision should be made based on proven competence in finding and developing petroleum reserves on a cost-competitive basis with other producers, and on a frank analysis of future prospects. This should include a realistic assessment of the projected rate of return on specific investment projects. If a company did not pass these tests, its strategy could take one of four paths. Diversification First, it could diversify. But recent history suggests that oil companies are not good at managing other businesses. Second, it could seek a buyer for its business at the optimum return for its owners. Third, it could sell its assets on a piecemeal basis. And, fourth, it could adopt a longer-range plan of self-liquidation by living off current recoverable reserves. In other words, by not investing in exploration and development, it could maximize short-term profit and pass the money back to shareholders in the form of dividends. The Conoco component of DuPont has a below-average cost of finding petroleum, a good track record of efficient production, and a full plate of projects that pass the test of return-on-investment. In short, Conoco is in business for the long-term. That fact, in itself, determines at least one key element in strategy. This is to extend the life of the petroleum reserve base while at the same time maintaining maximum efficient rates of production to provide a strong cash flow. A company that is able to maintain a strong reserve base will ultimately see the value of those reserves escalate as world oil supplies tighten. Our planners expect this tightening to occur within the next decade as demand grows and production in non-OPEC areas of the world begins to decline. An exploration program tailored to meet the requirements of reserve replacement and current production should have two basic parts. The first is relatively low-risk exploration in proven oil provinces. This is augmented by

Jan 6, 1985

By E. D. Attanasi, J. H. DeYoung

Mineral exploration activity in the US suffered through another depressed year in 1984. And continued strength in precious metals (and possibly industrial minerals) exploration failed to make up for declines in other minerals. 1984 offered little solace for the explorationist. But some new data on mineral exploration provided better statistics for analysts of US mineral exploration trends. The Society of Economic Geologists (SEG) published data from its survey of 1980,1981, and 1982 exploration by US and Canadian companies - 96 companies responded (Barber and Muessig, 1984). In addition, a Mining Engineering (April 1984 p. 345) article by Emerson and Ivosevic presented their data on annual exploration expenditures in the US for gold and for all minerals from 1961 through 1983. A review of 1984 domestic exploration and development activities reported in several industry journals indicates that almost 90% of those projects were directed at gold and silver deposits. Statistics on 1984 exploration expenditures are not available. But some industry observers believe that precious metals accounted for an even larger share of industry's exploration budget in 1984 than in 1983. According to the data of Emerson and Ivosevic (ME, April 1984, p. 349), gold exploration expendi-

Jan 5, 1985

By Stanley Lefond

The health of the industrial minerals industry appears to be improving year by year. In fact, preliminary information suggests that only three commodities (asbestos, bromine, and sulfur-other) failed to show a production gain in 1984 over 1983. In 1983, 10 commodities failed to post gains and six remained constant. The total value of industrial mineral production in 1984 was $16.7 billion, up $1.4 billion from 1983. Cement, clays, gypsum, and crushed stone production increased. Since these are used in housing and construction, this suggests these industries are moving out of their recent doldrums. Barite and clay production also improved in 1984. Local US barite production, however, still has a long way to go to attain the 1981 high of 2.6 Mt (2.9 million st). Barite imports remain high. But they are not as high as the 1982 importation of 2 Mt (2.3 million st). Bentonite production in 1984 increased 20% in volume and 25% in value over the previous year. This suggests improvement in the drilling industry and an increase in demand for iron ore pelletizing grades. All in all, the industrial mineral industry is alive and well. And it shows signs of great improvement in the next few years. Many thanks to those industrial mineral technical committee members for their assistance in assembling this industrial minerals review: M. F. Dibble, H. W. Allen, G. H. Gallup, S. G. Ampian, D. W. L. Spry, H. G. Fleshman, and L. J. Czel.

Jan 5, 1985

By P. Rosten

US mine production of iron ore in 1984 showed some improvements compared to 1983. But reduced demand from the iron and steel industry caused temporary shutdowns of many iron ore mines and pelletizing plants. US raw steel production in 1984 was slightly above 1983, but still at a depressed level. Production was 83 Mt (92 million st), compared with 77 Mt (85 million st) in 1983 and 68 Mt (75 million st) in 1982. Two major production trends continued in 1984. They were the increased production from electric furnaces and the growing use of continuous casters. Electric furnace production included 33.2% of the steel poured in 1984, compared with 31.5% in 1983. Continuous casting was used for 39% of 1984 steel production, compared with 32.1% in 1983. Statistical Process Control Statistical Process Control (SPC) has taken on new proportions in the iron ore and steelmaking industries within the last year. This mathematical technique is used to monitor, control, evaluate, and analyze a manufacturing process. The technique charts variability of important quality parameters. Training and adaptation of SPC techniaues for process control have been initiated at Inland, Steel's Minorca, Pickands-Mather's Hibtac, Cleveland-Cliff's Empire and Sherman operations, and at Reserve Mining. One of these operations has requested its bentonite supplier provide SPC charts on quality specifications. Some of the steelmaking operations (Inland Steel, Bethlehem Steel, Dofasco, LTV Steel, National Steel, Stelco, Weirton Steel, and Wheeling-Pittsburgh) have set up SPC programs within their operations. And they also have insisted that some of their suppliers use SPC. Plant Shutdowns The permanent closure of Stelco's Griffith mine at Red Lake, Ontario, has been delayed by one year. This gives employees more time to adjust. The mine is now set to close in April 1986, instead of April 1985. Sidbec (Canadian government) and its other partners (including British Steel Corp., Quebec Cartier Mining, and US Steel) closed its iron mining operations at Gagnon, Quebec. The pellet plant has been leased to Quebec Cartier. New Iron Ore Operations The massive Carajas iron ore project in Brazil is scheduled to come onstream in Jan. 1986. It is to achieve full-scale commercial shipments by July of that year. The 66% iron crude ore requires only crushing and screening before shipment. The product consists of 83% sinter feed and 17% coarse ore. Annual production capacity will be 32 Mt (35 million st) when the project is completed. Principal customer for the ore is Nippon Carajas Iron Ore Co., a consortium of Japanese steel mills. The Arab Iron & Steel Co. (AISCO) has started up a $US300 million, 3.6 Mt/a (4 million stpy) iron ore pelletizing plant built by Kobe Steel Ltd., at Al Hidd-hide in Bahrain. By 1986, this grate-kiln-cooler plant will supply high quality iron ore pellets to feed direct reduction plants in the immediate Gulf area and Far East markets. Iron ore supplied from Brazil, Peru, India, and Mauritania provides the feed to the pellet plant. Hydrated lime (2%) is used as a burden.

Jan 5, 1985

By J. D. Morgan

Demand for nonfuel minerals depends on the overall state of the economy, which steadily improved each quarter in 1984. New housing starts rose to 1.8 million units. Automakers turned out about 15% more cars (7.8 million) and 30% more trucks (3.1 million) than in 1983. Nevertheless, many domestic mineral operations experienced difficulties in 1984. This resulted from import competition greater use of newer engineered materials, emphasis on multi-unit housing and downsizing of motor vehicles. About 15% of our energy was imported. This in cluded $36 billion worth of crude oil and $22 billion in refined products This added significantly to the overall merchandise trade deficit of $12; billion. On the bright side for mining, coal production rose 14% to 810 Mt (890 mil lion st). Three-fourths o: the coal was burned to generate electricity and more than half of our electricity was derived from coal-burning plants. With the exception of a few large-bulk, low-value raw minerals, most minerals move relatively freely in world trade. The strong dollar encouraged imports and made exporting more difficult. Consequently, our nonfuel minerals trade deficit rose 60% to $19 billion, reflecting imports of $39 billion and exports of $20 billion. There were increased pressures from some major segments of the minerals industry for some form of import protection. But President Reagan said, "Our goal is a system of free and fair trade in goods, services, and capital. We will work toward this goal through both bilateral and multilateral trading agreements." The US minerals industry consists of domestic mines, concentrators, smelters, refineries, mineral manufacturing plants, and recyclers. It also includes many wholly- or partially-owned operations in many parts of the world, providing employment and income for US citizens and others as well. Compared with 1983, the value of US raw nonfuel mineral output rose 8%, to $23 billion. The $253 billion worth of goods processed from this crude mineral output was a 14% increase. Major Metals Raw steel production - a major indicator of both material use and mineral production-rose 10%, to 84 Mt (93 million st). This stimulated a 36% rise in domestic iron ore production, to 52 Mt (57 million st), about 98% pelletized. Iron ore imports rose 44%, to 14 Mt (15 million st). Despite the increase of steel production, output remained well below levels of just a few years ago. For example, 1984 production was still 23% less than in 1981. Raw steelmaking capacity remained steady at 122 Mt (135 million st). The industry continued to cite steel imports as a major reason for low domestic capacity. In December, pacts with seven leading steel exporting nations were announced. This is an effort to reduce import penetration to about 18.5% of the domestic market. Domestic producers of bulk ferroalloys of chromium, manganese, and silicon operated at about 50% capacity. The US mined no manganese or chromium. Only a small quantity of ferronickel was produced from domestic laterite mining in Oregon. Molybdenum production, at 45 kt (49,500 st), rose threefold. Mine shipments of tungsten, another mineral tied to steel

Jan 5, 1985

By William R. Bond, Jim V. Rouse

Introduction The pressure/vacuum (p/v) lysimeter or soil water sampler has become useful for monitoring vadose zone or unsaturated zone water conditions. The soil water sampler was first introduced around 1961. It was used as a monitoring and research device for studies in agriculture and soil contamination around landfills. Since then, it has been used for many purposes. The use of p/v lysimeters at mining facilities to monitor for solution loss is a relatively new idea. The primary purpose of the lysimeter here is to function as an early warning system. It detects leakage through liners of tailings ponds, heap leach pads, and leachate holding ponds. Their use has proven valuable for collecting baseline data and detecting loss of precious leachate fluid. Different lysimeter designs are capable of vadose moisture sampling from near the surface and down to 90 m (300 ft). They are also capable of sampling soil moisture or saturation plume contaminants from areas not accessible by conventional water well installations. The most common installations are usually simple and cost-effective. In many cases, they can be installed without the use of heavy drilling equipment. A properly placed and installed lysimeter can detect solution leaks in several days or weeks. A conventional perimeter monitor well may take months or years to detect a leak of the same magnitude. A discussion on the general design and installation of p/v lysimeters will give an understanding of its versatility. Three case studies of lysimeter installations at mining sites will be examined in detail. Design, Installation, and Sampling Design The basic design of a p/v lysimeter chamber consists of a porous material through which the soil is drawn into a collection chamber. Access tubes run from the unit to the sample station at the ground surface. Most units currently available range from 25 to 76 mm-diam (1 to 3 in.-diam). The sample collection chamber, or body, can vary from 0.6 to 1.8 m (2 to 6 ft) in length. The body can be constructed of PVC casing or Teflon, depending on the installation desired. The collection chamber functions as a holding reservoir for the collected soil moisture. The intake, or porous material, on the lysimeter is the most complex and vulnerable portion of the unit. The pore size selection varies based on the needs of the installation, type of fluid to be sampled, and type of soil material surrounding the unit. Teflon (PTFE) and porous ceramic are used in fabrication of the porous inlet portion. When using a Teflon material, which is hydrophobic, a larger pore size of 70 µm is needed to overcome surface tension and draw water into the collection chamber. It is typically used at sites involving organic contamination, because of its inert properties. Ceramic material is generally hydrophilic, having less surface tension. Therefore, it has a smaller porosity range to conduct the moisture through the porous medium while under vacuum. Pore sizes may be selected from 0.16 to 6 µm, and can be manufactured for the specific needs of the installation. The final major design component of the p/v lysimeter is the access or sampling tubes. The tubes are usually of 6.3-mm-outside-diam. (0.25-in.-outside-diam). They are made of rigid polyethylene or flexible Tygon with a wall thickness of 1.5 mm (0.06 in.). The con-

Jan 4, 1985