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By E. Dernedde

Industrial plants located in the province of Quebec, Canada, are subjected to large variations of the ambient air temperature, Building ventilation systems of these plants must have some flexibility in order to meet industrial hygiene standards (TLV for chemical substances, heat stress and cold stress) at any time of the year, The building ventilation of a bath treatment plant of an aluminium smelter in Quebec was examined under summer and winter conditions, Part of the plant has periodic emissions of hydrogen fluoride gas and heat from hot anode butts, CFD modeling was used to optimise the building ventilation of the bath treatment plant, The present study proposes a modified building ventilation system, which improves the internal environment, complies with industrial hygiene standards and also reduces heating costs by 20 % during winter.

Jan 1, 2005

By Brian Rausch

Agenda ?? Refresher: Victor Project Execution ?? Operations Capability roadmap: ? Operations staffing starter group: design participation ? Operations staffing build up for production start-up ? Training and commissioning integration ? Turning OPSCAP ramp-up into a project ?? Go Live! The Results

May 1, 2009

By Dong-kil Lee

A ventilation improvement index (VII) was developed in an effort to propose an optimal ventilation improvement measure for a designated mine. The index was designed to incorporate both ventilation effectiveness and cost efficiency. To verify the effect of the index, a mine experiencing a ventilation problem was selected, the ventilation assessed and ventilation network analyses were conducted. In the selected mine, four areas with ventilation difficulties were detected and an improvement schemes for each area were proposed. These were simulated through network simulation and evaluated using the ventilation improvement index. As a result, an optimum ventilation improvement scheme was proposed. The improvement scheme with the highest VII value was incorporated in the design.

Aug 1, 2013

By Roméo Roussin

"The yearly production from the Asbestos Hill pit is 1,550,000 tons of asbestos ore, with a yield varying between 18 and 20 % . The orebody was exposed at the top of a hill, and initial production started without having to remove any overburden. The projected ratio of barren rock to ore, based on the present orebody, was 2 to 1. However, as it was necessary to push back the upper benches, this ratio has changed to 3 to 1. The final pit will be 2,300 feet long by 1,000 feet at the longest and widest points. The final depth will be 680 ft. A pit slope stability study was carried out and an average wall angle of 60-70 degrees must be maintained. Preshearing of final pit limits will produce good wall stability. Permanent access ramps will be 60 ft wide, with an 8 % maximum grade. Geological conditions and the low rock temperature are the major causes of the operation's drilling and blasting problems."

Jan 1, 1976

By M. Al Mukhtar, D. Hoxha, X. Brunetaud, D. P. Do, C. Auvray, L. Michel

"Mechanical behavior of rock joints is often the key factor governing the response of complex structures constructed in fractured rock masses such as underground openings or of objects assembling various stones blocks such as historical building walls or damaged marble statues. This paper aims at developing a theoretical model to describe the behavior of fresh joints based on the description of their morphology. The main idea of the model is to establish a link between the effective contact surface of joints and the frictional coefficient. Beginning from a chosen level of joint surface description where a joint is considered as “smooth”, the model describes the added friction with respect to the increase of the contact surface of the joints and the distribution of stress in these contacts. The model developed initially for asperities with regular geometry is firstly compared with existing models and then applied on fresh artificial joints. For that, healthy artificial joints have been characterised using in one hand classical CNL shearing tests and in another hand the morphology of joints. The joints surfaces are digitized before testing using a high resolution laser scanner (Konica Minelota Vivid 910) allowing to obtain a precision up to 10µm. From these scanned surfaces the morphology of joints is characterised on the profiles running in the direction of shearing and a mean value of friction is calculated using the developed model. This calculated value is then compared with that obtained from CNL shearing test and a good approximation is notedINTRODUCTIONThe role of the mechanical behavior of rock joints on the overall response of fractured rock masses is well established in many fields of engineering activity going from the stability of underground constructions (Souley M, Hoxha D, Homand F 1999), rock slope stability (Einstein H.H. Veneziano D., Baecher GB., O’Reilly K.J, 1983, Jaeger 1971), various rehabilitation of masonry construction, damaged stone artworks restoration (Michel L., Do D.P, Coignard B, Hoxha, 2014) and so on. In the same time the characterisation of the behavior of joints and their modeling is nowadays a dynamic field of research or/and investigations and many alternative approaches have been proposed (Barton, N.R. and Choubey, V. 1977, Tatone, S.A. Bryan, Grasselli Giovanni 2010, William C E. 2007). While empirical relations of shear strength with various parameters of the joint morphology are the most used in practice because of their simplicity (Barton. and Choubey, 1977, Barton 1973, Bandis S., Lumsden A. C. and Barton N. R. 1983) many other models of joint strength are developed based on mechanistic considerations (Haberfield CM, Johnston IW. 1994), multiscale approaches (Yang Z.Y., Di C.C., Yen K.C. 2001, Fardin N., O. Stephansson, Lanru Jing 2001) or micromechanical ones (A. Serrano, C. Olalla, R.A. Galindo 2014) to mention just a few of research trends on rock joints modeling."

Jan 1, 2015

By H. Salamanca

Recently, the mining industry has become one of the leading target markets for the technology industry as they need to innovate in their productive processes in order to boost productivity, reduce operation costs, increase operation safety, and improve the quality of life of their workers. This work presents the technological developments that HighService has done in different stages of the mining productive processes to include robotic manipulators in their automation solutions as well as the development of new equipment and sensors. The robotic technology integration is presented in different applications such as handling and selection of cathodes in E-W machines, automation of base plate maintenance, automation of cathode stripping machine, and multi-tools handler for liner bolt replacement in SAG mill liner maintenance activities. The proposed solutions show technical and economical viability with low initial investment and short implementation period of six (6) to ten (10) months. The results have been validated in plant, obtaining higher production rates and availability.

Jan 1, 2007

By Paul-Henri Girard

La Mine Agnico-Eagle division Laronde situé à Cadillac, est un producteur d?or, d?argent, de cuivre et de zinc. Cette propriété est situé dans les cantons Bousquet-Cadillac le long d?une des ceintures géologiques les plus productives au monde. La mine Laronde a débuté la production en octobre 1988 à un rythme de 1360 tonnes par jour. Ensuite, elle a augmenté son rythme de production successivement à 1800 TPJ en 1990, 3300 TPJ en janvier 2000 et 4500 TPJ en octobre 2000. Agnico-Eagle, fondé par feu Paul Penna, a toujours eu comme politique la participation des employés aux décisions de la compagnie pour le déveleppement de celle-ci. Cet écrit va permettre de mieux comprendre la façon dont la division fût développé.

May 1, 2001

By B. Jakovljevic, M. D. Soderstrom, T. McCallum, A. J. Quilodrán

Cytec has developed a new organophosphorus based solvent extraction (SX) reagent for rare earth separations. The new product, CYANEX® 572, has been formulated to allow efficient extraction while minimizing the strip acid requirements. The optimization of formulation strength is expected to significantly reduce the operating costs of these circuits. Modeling capabilities for CYANEX® 572 (similar to those used successfully in Cu and Co/Ni SX) have also been developed to aid in the design and optimization of the SX circuits. Simulations will be shown comparing CYANEX® 572 to a traditional rare earth extractant.

Jan 1, 2014

By Kazutoshi Haga, Ariunbolor Narankhuu, Ariuntuya Battsengel, Yasushi Watanabe, Altansukh Batnasan, Akita University

"Rare earth minerals are usually concentrated by flotation, magnetic or gravity separation methods to produce concentrates that are subsequently leached with hydrochloric (HCl), sulfuric acid (H2SO4) or nitric acid (HNO3). About 75 % REEs are lost in gypsum by-product when apatite is dissolved in H2SO4, whereas more than 80% of REE can be extracted from the apatite using HCl and HNO3 leaching processes, respectively. Therefore, the main aim of this study was to find an efficient process of dissolution of rare earth elements (REEs) from apatite ore by sulfuric acid solution due to its lower cost. In order to optimize the dissolution process, effects of different parameters, namely, concentration of H2SO4 (0.05 – 6 M), solid/liquid phase ratio (1:50 – 1:100), temperature (20 – 80 ºC), agitation speed (300 – 900 rpm), and leaching time (0.5 - 6 h) on the dissolution of REEs from apatite ore were examined in various intervals. The contents of main REEs in the apatite ore used in this study were (as % wt): 3 % La, 6 % Ce, 0.6 % Pr, 2.1 % Nd, 0.2 % Sm and 0.3 % Y. X-ray diffraction (XRD) analysis identified fluorapatite and phlogopite as main minerals in the ore. The results obtained from leaching experiments showed that more than 85% of REEs were dissolved from the apatite ore under the optimized conditions, which were: 1 M H2SO4, particle size of -150 + 100 µm, S:L phase ratio of 1:50, agitation speed of 500 rpm at 20 ºC for 1h. The XRD analysis revealed that main mineral compositions of the residues from 1M and 6 M H2SO4 leaching are gypsum (CaSO42H2O) and hemigypsum (CaSO40.5H2O), respectively.INTRODUCTIONThe term rare earth elements (REEs) denote the group of 17 chemically similar metallic elements consisting of the 15 lanthanides, plus yttrium (Y) and scandium (Sc) in the periodic table. These metallic elements are generally divided into two sub-groups; (1) the cerium sub-group, which is called “light rare earth elements” (LREEs), includes the elements from lanthanum (La) to europium (Eu), and (2) the yttrium (Y) sub-group elements, which are known as “heavy rare earth elements” (HREEs), are the remaining lanthanides from gadolinium (Gd) to lutetium (Lu) plus yttrium (Gupta and Krishnamurthy, 2005). The REEs occur together in the minerals due to their chemical and physical similarities, which cause problems of separating them from one another (Abreu and Morais, 2014). Although REEs are relatively abundant in the earth’s crust, they are typically dispersed and rarely occur in concentrated forms, making them economically challenging to obtain. There are a wide variety of rare earth minerals, however economic deposits of REEs in mining are bastnasite (La, Ce) FCO3, monazite (Ce, La, Y, Th) PO4, and xenotime YPO4 (Binnemans, 2013; Xie, et al, 2014). Due to the unique physical, chemical, catalytic, electrical, magnetic and optical properties of REEs, demand of these elements has increased dramatically with the advent of new technologies in electronics, communication, construction, energy and medicine (Jordens, et al, 2013). Since 1990, China has provided about 90 % of REEs worldwide. Japan and United States are the largest consumers of China’s REEs. In 2010, China announced to reduce REEs exports to Japan, as it tended to increase prices of REEs and to reduce a stable supply of REEs in the world market (Humphries, 2013). Therefore, there has been an increase in recent exploration activities intended to reveal new commercial sources of REEs and to bring them into production (Antico, et al, 1996). Apatite is an important host mineral for REEs in igneous and metamorphic rocks and can be used as an ore for those metals (Kanazawa and Kamitani, 2006). Apatite is also the main source of phosphate fertilizers and phosphoric acid (Habashi, 2013; Emsbo, 2015)."

Jan 1, 2016

By L. Contretras

This study has as an objective to analyze and to propose actions to improve the quantity and quality of the graduate education in the area of mining industry, specifically of mining engineers, metallurgists, geologists, to satisfy the expectations of professionals in the mining industry. Included are an analysis of the present scenario and the future demands in countries like Chile and proposed plans for the Establishment of Educational Initiatives, country policies and market forecast, vis-a-vis the experience of Australia, South Africa, United Kingdom, Canada and the United States of America.

Jan 1, 2007

By S-E. Vandat

The goal of this work was to select an appropriate electrode for dummy load of diesel engine in fully salt-water in the DESA factory. The electrochemical corrosion rate of general structural steel, commercial pure aluminum and cathode copper calculated as weighting, volumetric and commercial in fully salt-water by city power. After several tests and then applying the fuzzy logic method, it was determined that general structural steel is the best selection for this purpose.

Jan 1, 2005

By R. Grau

"After commissioning and start-up of the first 500m3 TankCell® flotation cell in 2014, the over 300m3 mechanical flotation cells have earned their place in large-scale flotation operations. These 500 to 630m3 cells, designed for projects with large throughputs, are proven to provide savings in project capital and operational expenditure through savings in foot print, energy consumption, and less equipment to install and maintain. Addition to savings in different phases of a project, these cells provides operational flexibility and has shown improvements in metallurgical performance. In this paper a case study from Kevitsa TankCell® e500 installation and Buenavista del Cobre TankCell® e630 installations will be given.INTRODUCTION After development (Grönstrand and Bourke, 2008), characterization (Morales et al. 2009; Yanez et al. 2009; Grönstrand at al. 2009), validation (Elgueta et al. 2009; Coleman and Dixon, 2010), and more than 350 industrial installations of the Outotec TankCell® e300 flotation cell, the well proven energy efficient TankCell® product family introduced the TankCell® e500 forced-air flotation cell late June 2012 (Outotec.com, 2012). The introduction of the 500 m3 flotation cell followed by introduction of a 630 m3 flotation cell, TankCell® e630, in October 2014 (Outotec.com, 2014). These large flotation cells are designed for projects with high throughputs where the number of cells needed for operation with smaller equipment would become large. The benefits of this size of flotation cells comes from the lower capital expenditures due to lower equipment costs, savings in plant footprint, less installation work with less auxiliary equipment, lower energy consumption, and less units per installation resulting in less components, spare parts and maintenance.The first TankCell® e500 was commissioned and taken into operation in October 2014 at FQML Kevitsa Cu-Ni-PGE concentrator, nowadays owned by New Boliden. The first TankCell e630 was taken into operation in January 2018 at GrupoMexico’s Buenavista del Cobre Cu-Mo concentrator. The start-ups of the first TankCell® e500 and TankCell® e630 followed with test work where the hydrodynamic performances of the cells were characterized and metallurgical performance studied. The results of the TankCell® e500 test work were presented in detail by Mattsson et al (2015a; 2015b) and TankCell® e630 by Grau et al. 2018. In this paper the metallurgical improvements achieved with the large cell installations will be presented."

Jan 1, 2019

By D. J. Wesolowski, D. A. Palmer, P. Bénézeth, S. Hilic

The equilibrium solubilities of gibbsite, Al(OH)3, and boehmite, A1OOH, have been extensively studied in our laboratory from 30 to 90°C, and 100 to 300°C, respectively, to ionic strengths of 5 mol.kg-1 (NaC1) over a wide range of pH. The resulting solubility constants have been treated with consistent empirical models that incorporate appropriate experimental data taken from the literature. These studies were initiated in part to understand and quantify scale formation in geothermal fields as a result of fluid re-injection from electric power generating plants. Most of the experimental results were obtained through application of a unique potentiometric method that allows for rapid, precise measurement of the in situ pH and allows the approach to equilibrium to be monitored from under- and super-saturation. The experimental program was extended to deal with more basic solutions (e.g., five molal NaOH), in which the dissolution of boehmite was measured for application to the refining of bauxite by the Bayer process. More recent results in strong caustic solutions at temperatures below 90°C were obtained to investigate the dissolution of aluminum-containing sludge from holding tanks at the Savannah River waste reprocessing site. In this case the solubility enhancing effects (kinetic and equilibrium) of triethanolamine were also established and quantified. Finally, potentiometric solubility experiments were conducted (50°C in 0.l mol-kg-1, NaCl) on aluminum alloy sheets to identify mainly the nature of the aluminum oxide/hydroxide surface layer formed under these conditions.

Jan 1, 2004

By L. B. Tsymbulov, L. Sh. Tsemekhman, A. N. Golov

Gipronickel Institute, JS is developing a process of continuous converting of Nicontaining copper matte and concentrates resulting in the production of blister copper and fluid NiO-containing slag in a two-zone Vaniukov furnace. The process under development is an alternative for the existing technology of blister copper production in converters, the latter being characterized with insufficient sulphur utilization, low direct copper recovery and the production of inconvenient for further processing solid slag on the basis of NiO and NiFe20 4- The results of pilot testing on processing of copper concentrate obtained from high-grade matte (HGM) separation in the two-zone Vaniukov furnace with the hearth area of 11.4 m2 are presented.

Jan 1, 2007

By P. J. Deveaux, M. J. Kreczmer

The Tartan Lake deposit 12 km northeast of Flin Flon, Manitoba, was discovered in March of 1984 during the investigation of a VLF anomaly. The discovery hole intersected 16.83 metres averaging 21 gm Au/tonne. Since then, 99 holes, over 21,000 metres, have been drilled outlining 419,491 tonnes grading 11.79 gm Au/tonne in a di stinct group of mineralized lenses referred to as the Main Zone. Three other mineralized zones are known on the property but no reserves have been allowed for these, the South , East and Base Line zones. The Main Zone consists of seven parallel, east-west striking, quartz lenses. The lenses dip steeply to the north and plunge steeply west to northwest. Lens number l strikes for 160m and extends vertically to the 90m level. Within th is lens there is a 60m interval of low grade materi al. Lens number 2 is located about 5-l0m within the foo twall of Lens number I. Near surface this lens stri kes for 40m, at 200m level the strike length increases to 200 m. To date the deepest mineralization on Lens 2 has been intersected at a vert ical depth of 527m. Five smaller lenses are located in the foo twall of Lens 2 , containing gold va lues similar to the two main lenses but erratically distributed. The South Zone, located 100m south of the Main Zone, strikes east-west fo r l00m above the 100m level. The East Zone, found 230m east of the Main Zone, strikes fo r 80m and may possibly be an ex tension of the South Zone. The Base Line Zone is located 275m south of the Main Zone. Sporadic, but very significant gold intersections have been obta ined1n all three zones. Gold-bearing quartz-ca rbonate tourmaline veins are generally confined to a silicous crystal tu ff hori zon. The crystal tuff exhi bits fi ve distinct types of alteration: silicification, sericitization, ca rbonati zation, chlorit ization and pyritization. Silicification has resulted in a perasive addition of silica and the generation of multiple quartz veins. Sericiti zation is restricted to the crystal tuff. All rock units are pervasively carbonatized . Ankerite is abundant in the quartz veins and within the shear zones, particul arly those located along the chilled margin of a nearby gabbro-diorite intrusion. Chloritization is widely spread th roughout the rock units, while pyritization fo rms a broad alteration halo associated with the orebody. Sulphide accesso ry minerals associated with the gold , whi ch fo r the most part appears to be free, are chalcopyrite and pyrite. Generally, the higher grade gold values are related to an increased content of sulphides in the qua rtz veins. The average sulphide content in the deposit is less than 5 %.

Jan 1, 1986

By Jing Chai

The Cenozoic unconsolidated strata with the thickness of 100 to 240m in the east area of China are composed of clay, sandy clay and hardpan, etc. Numerous shafts of the coal mines in these areas have been damaged to various degrees since 1987, with the main reason for this being the subsidence of the super-thick unconsolidated strata. To prevent the continuing settlement deformation of unconsolidated strata caused by groundwater removal, long-term water injection through multiple boreholes controlled the settlement deformation of unconsolidated strata. A new type of fiber Bragg grating (FBG) sensing system was successfully used for real-time strain monitoring of the unconsolidated strata during water injection at a coal mine in China. A mathematical model for the compression settlement induced strain calculation is proposed which can assist understanding of the effect of water injection on the ground. With the increase in water injection, the unconsolidated strata compressed state was improved by the transition of the stress state from compressive to tensile stress. The wavelength change of fiber Bragg grating sensors corresponded with the trend of the water level in the same strata. Engineering practice indicates that these sensors can normally, safely and reliably survive conditions associated with hydrous unconsolidated strata. The FBG sensing can be used for continuous lifetime monitoring of the system, starting with real-time monitoring during low-pressure water injection process of multi-borehole. The results will give important guidance for water injection and mastering stratum subsidence.

Aug 1, 2013

By J. A. Allan

OCCURRENCES of salt in Alberta have been mentioned and described by the writer in 1929 (l) and by Cole in 1930 (2). Brine springs occur at a number of places along the valley of Athabaska river north of latitude 56 degrees, and also on the south margin of Salt prairie, twenty-five miles west of Fitzgerald in the vicinity of the 60th parallel of latitude, which is the boundary between Alberta and the Northwest Territories. These salt springs were visited by Sir James Richardson in 1820, and in the same year D. W. Harmon stated that " ... clown Salt river there are several places where almost any quantity of excellent dean white salt may be taken with as much ease as sand along the seashore" (3). One hundred years later, in 1920, when the writer first visited these springs, the "dean white salt" which had accumulated about the springs was about 400 tons ( 4). This paper deals with a thick deposit of rock-salt which has been proved by drilling in the vicinity of McMurray. Particular attention will be given to a well drilled at Waterways early in 1936 by Industrial Minerals, Limited, when a continuous bed of rock-salt was penetrated with a thickness of 199 feet. As this paper is being presented, a salt plant is being completed and a production well is being drilled at the plant. < is salt deposit is in the vicinity of McMurray, close to the junction of the Clearwater and Athabaska rivets, in township 89, range 9, west of the 4th meridian. McMurray is about 240 miles northeast from Edmonton. As shown on Figure 1, Clearwater river, which rises at Methy portage, in Saskatchewan, enters Athabaska river at McMurray. Some three miles above the mouth of Clearwater river, the Hangingstone enters from the southwest. Waterways, where the latest salt development has taken place, is situated at the end of the Northern Alberta railway, a distance of 304 miles from Edmonton. This railway reaches the bottom of the Clearwater valley at Draper station, about 3 miles east of Waterways and near the mouth of Deep creek. The Draper bituminous sand plant is approximately half a mile east of Draper station. About one mile south of the townsite of McMurray, Horse river enters the Athabaska from the east.

Jan 1, 1937

By Maureen McGuiness

"The pastefill circuit at the Bell Allard Mine in Matagami, Quebec started up in August 1999. The surface pastefill plant produces a cemented paste which is sent underground by gravity through a vertical pipeline in the mine ventilation shaft. Difficulties with paste flow during the start-up highlighted the importance of understanding paste rheology and the effect of operating procedures on line wear. By June 2000, the original circuit had been modified to include a paste pump to transport the paste to the shaft.The steps taken during the paste plant commissioning are discussed. The final flow sheet is presented, focussing on the use of instrumentation to ensure full column flow and proper distribution underground. Resistance modelling and accelerated curing of samples are examined as possible ways of predicting paste resistance to ensure compliance with the mine’s paste specifications.INTRODUCTIONCommissioning a new plant can be difficult and time consuming. The start-up of Noranda’s Bell Allard paste backfill plant was no exception. Since the first day it went into operation, the paste circuit could not meet the tonnage and paste quality requirements of the mine because the paste would not flow by gravity into the vertical pipeline in the mine’s ventilation shaft.Diagnosis of the pastefill problems proved difficult. It was only when the rheology of the Bell Allard paste was understood that the flow problems were solved. To ensure that the paste placed in the stopes meets mine requirements, two methods of paste resistance prediction are being developed."

Jan 1, 2002

By Gordon Sparks, Lyle Kajner

"An often over-looked component in the assessed value of a mining property is the value derived from the ability of the operator to limit financial losses during adverse economic times (i.e. low market price, high energy prices, etc.) by suspending operations. Overlooking the value of this type of operating flexibility when conducting mine investment analysis may negatively bias the risk profile for the investment by over estimating the investment&apos;s downside potential, thereby effectively undervaluing the investment. This paper illustrates the nature of the value of operating flexibility and discusses how it may be explicitly quantified within the context of conducting stochastic mine investment analysis. IntroductionMining properties are evaluated using an array of techniques ranging from simplistic non-discounted payback calculation s to sophisticated, discounted-stochastic simulation. Stochastic simulation analysis is perhaps the most robust mine investment analysis technique as it not only provides an estimate of the expected value of the property, but also quantifies the associated risks (for examples of stochastic mine investment analysis, see: Billingsley and Yaychuk, 1986; Gentry and O&apos;Neil, 1984; Munro, 1977; or Harris, 1970).The quantification of risk is important as it provides the necessary yardstick required to allocate the corporation&apos;s resources efficiently. Resources are said to be allocated efficiently when the corporation&apos;s expected long-term financial reward is maximized while at the same time minimizing its risk (see Hertz, 1968; or Markowitz, 1952 for in depth discussions on efficiency as it relates to investment policy). The efficient allocation of resources should be the objective of any rational corporation. Therefore, rational corporations should employ stochastic evaluation techniques when screening their investments."

Jan 1, 1992

By Keith C. Hendrick

"Metal prices are frequently the most critical and least predictable element in determining the profitability of mining operations. Short -term fluctuations can be offset in varying degrees by hedging or other market actions. Such solutions are not practical for the longer term, The paper investigates the nature and extent of metal price risks and evaluates methods to reduce them.IntroductionIt is management&apos;s responsibility to improve the odds by managing the-risks by identifying them clearly, assessing them accurately, minimizing them where possible-and, then, timing decision s success fully.In determining the profitability of current operations, preparing forward plan s or developing feasibility studies for new projects or expansions, pr ices are usually the most critical input. Being market determined rather than cost based, they can also be the most unpredictable As a result, commodity prices are frequently the greatest of all risk factors.Nature of Commodity PricesThe cyclical nature of commodity prices is well known. They are stable only when supply is in balance with demand and forecast to remain that way. An imbalance on either side of the equation can lead to a price reaction completely out of proportion to the actual or perceived surplus or shortage.This exaggeration arises through the cumulative effect of market forces. When the market senses an uptrend, consumers buy for the expected increase in activity. They also seek additional quantities for inventory before price s rise. Merchants defer spot sales anticipating higher price s, speculators go along for the same reason, and producers raise prices in response to demand. Events tend to confirm the expectation of each party and strengthen their reaction causing prices to move higher."

Jan 1, 1983