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By L. A. Morley

This report summarizes the work performed on Bureau of Mines Contract J0199106, "Portable Trailing Cables, Splices, and Couplers - Design and Installation Considerations," from May 1, 1979 until December 31, 1981. Splice installations and considerations for the possible use of conductive-rubber shielding in low-voltage trailing cables as well as coupler installations in high-voltage cables were the principal tasks. Flammability measurements on cable components and general testing facilities for mine electrical equipment were secondary tasks. Theoretical and empirical data indicate that conductive rubber with high resistivity values is an unsatisfactory shield design for current-sensing fault detection. Elimination of partial discharge in coupler installations requires meticulous care.

Jan 1, 1982

It is easy to demonstrate the importance of aggregates in any conversation about infrastructure and other engineering artefacts. Peoples around the world have made use of stone to enrich and enhance their lives since the earliest days of civilisation. In New Zealand, Maori used hard durable rocks for weapons, tools, and basic structures. European settlement accelerated the use of quarried materials and formed the basis for development of our society as we see it today. Logic might suggest that the quarrying sector would be recognised positively for, and encouraged to continue to contribute to, this underpinning of the way we are. The reality is æNot In Most Back YardsÆ. Why? The rock is where it's always been (often overlooked) and our æsocialÆ environment is today's hard place. For a resource-based business in New Zealand, that environment is principally the Resource Management Act, with the widespread power it has distributed to anyone prepared to invest their time. This coupled with a lack of leadership and direction in the implementation of the Act has created a climate that stifles development and diverts energy and resources to æplaying the gameÆ rather than ælifting the gameÆ. Perhaps the real costs of this are not yet widely recognised. The paper will draw mainly on the experience of endeavouring to consent a ægreenfieldÆ quarry in the Waikato region. This is supported by commentary based on nearly 10 years of ælivingÆ with the RMA at sites across much of New Zealand. RMA Scorecard Summary: Effects based? Rarely. Level playing field? No. Maori Consultation? Could do better. Efficient use of resources? No. Timely? No. Is it working for other sectors? Certainly not the quarrying industry's customers and end users.

Jan 1, 2000

By D. Harrington

United States newspapers of 25 or 30 Years ago ran headlines every few weeks telling of some mine disaster. Each disaster was a first-page attraction for a day or so then was forgotten until the next sensational event, frequently another mine disaster, a few weeks later. Interspersed with the large mine disasters were the so-called ?snipping? mine accidents that caused the death of one or two mine workers. The summation of mine fatalities of all types usually exceeded 3,000 a year, and nonfatal accidents to workers in mines of the country approximated 250,000 annually. From 1906 to 1910, inclusive, there were 84 major explosion disasters (about 17 per year) in. United States coal mines. The resulting fatalities totaled 2,388 for the 5-Year period. These frightful catastrophes helped the number of fatalities in coal mines of the country to reach the enormous total of 13,288 for the 5 years, or an average of 2,658 per year.

Jan 1, 1940

By James Rowland, Marcia Harris, Richard Mainiero

This paper reviews the potential hazards posed by the toxic fumes produced by detonating explosives in surface mining and construction operations. Blasting operations produce both toxic and nontoxic gaseous products; the toxic being mainly carbon monoxide (CO) and the oxides of nitrogen (NO x ). The quantity of toxic gases produced by an explosive is affected by formulation, confinement, age of the explosive, and contamination of the explosive with water or drill cuttings, among others. Techniques to protect workers and the public from the potential hazards of explosive-related toxic fumes are discussed.

Jan 1, 2007

By W Roy

When it comes to plan implementation and securing success in organisations in the 21st century, if there was such a thing as the secret to success it would be effective communication. Commoditisation brings financial, operational and cultural advantages to organisations that use effective communication. Effective communication tools turn æpeople problemsÆ into system control solutions, removing personality clashes that hide procedural malfunctions. By introducing communications frameworks available in the market place today, and case studies of their use, this paper provides insights into the successes available to organisations courageous enough to redefine their communications for the 21st century.

Jan 1, 2006

By A. Motamedi

Indoor localization has gained importance as it has the potential to improve various processes related to the lifecycle management of facilities and to deliver personalized and location-based services. Radio Frequency Identification (RFID) based systems, on the other hand, have been widely used in different applications in construction and maintenance. This paper investigates the usage of RFID technology for indoor localization of RFID equipped movable assets during the operation phase of facilities. The location-related data on RFID tags attached to fixed assets are extracted from a Building Information Model (BIM) and can provide context-aware information inside the building which can improve Facilities Management (FM) processes. The paper proposes a new approach to use received signals from available reference tags in the building attached to fixed assets to locate movable assets. The approach uses signal pattern matching and clustering algorithms for localization. As a result, a user equipped with an RFID reader is able to estimate the location of target assets, without having access to any Real- Time Location System (RTLS) infrastructure. A case study is performed to demonstrate the feasibility of proposed methods.

Aug 1, 2013

By N Elith

Coal is a valuable energy source in New Zealand and has been mined from the West Coast for over 100 years. Stockton Mine is New Zealand's largest opencast coal producer supplying around 1.5 Mt of hard coking and thermal coal to international markets annually. The Stockton Plateau forms an extensive, gently inclined dip slope on erosion resistant Lower Eocene Brunner Coal Measures unconformably overlying basement rocks. The dip slope rises 600 - 1000 masl, locally dissected by fault scarps and present-day fluvial systems, some of which are deeply incised. Within the Mt Augustus Mining Block overburden comprises of a 30 - 40 m thick sequence of fluviatile, coarse to granular coal measure sandstones. High quality coking coal is preserved as a gently dipping, 10 - 12 m thick seam. High and sometimes very steep cliffs of jointed overburden shape the skyline escarpment, above steep forested slopes and gullies. As mining has progressed at Mt Augustus individual coal blocks are progressively becoming more technically challenging. This paper outlines the scientific approach taken by Solid Energy International and mining contractors to carefully unlock many thousands of tons of coal whilst protecting nearby flora and fauna from the impacts of dislodged rock and other blasting side-effects. The strategy involved: an expert-driven onsite risk assessment,formulation of a management plan to manage impacts,conducting an in situ vibration research program, andanalysis of results and operational designs to eliminate potential environmental problems.

Jan 1, 2003

By Almer E. C. van der Stoel

"Abstract This paper deals with assessing the bearing capacity of existing wood pile foundations. With a wide range of restoration projects being performed in the Netherlands, on many locations deep excavations need to be constructed next to existing, many times listed buildings. The building are founded on piles that are often centuries old, so a close evaluation of the remaining bearing capacity, combined with and assessment of the influence of the excavation is in place.After giving an introduction on Dutch pile foundations, a methodology is described to assess the bearing capacity. Aspects as physical foundation investigation, determination of the current bearing capacity and a calculation of the bearing capacity in the new situation are discussed. The results of both analytical and Plaxis calculations are outlined, focussing on how to practically use this approach in renovation projects. Finally, cases studies of the successful application of this approach in major renovation projects in Amsterdam, such as the Conservatorium Hotel and the New Rijksmuseum are used to illustrate the successful application of this approach.A Short Dutch Pile Foundation History (based on Van der Stoel, 2001)The first houses built in Amsterdam, in the 12th century, were very light constructions of timber without foundations. Because of the soft peat layers found in Amsterdam, the houses there suffered from damage due to settlement. In the 13th century, castles and churches were increasingly built of bricks, which made it necessary to provide support for bigger loads. Under the wall of the construction a trench was dug, and this was filled on either side by alder fascines. Between the fascines small wood piles were driven (by hand) on which another series of fascines was put. On top of this construction, were placed oak slabs on which the bricks were then laid. From that moment on, a problem was caused by the decay of wood foundation elements in the humid soil. In 1503 a law was introduced forbidding building foundations on public streets without permission of the Building Inspection (to keep the fronts of the buildings in a straight line). In 1528 a law requiring permission from the local authorities for all building activities replaced this law. In this period developments started which led to the use of the type of foundation that can be considered the mother of the current “typical” Dutch pile foundation. The piles used in this period were shaft- bearing piles about 5 to 7 meters long. The mostly pine piles were driven between oak beams, which were placed on either sides of a trench, after which other oak beams were laid across at regular spaces: the so called “pile bent” pile foundation (Figure 1)."

Jan 1, 2014

By H. -L. Heikkilä, E. Peuraniemi

"Boliden Harjavalta Oy has a long tradition in the Finnish metal industry starting from the 1930's. The Smelter consists of copper and nickel flash smelting lines. Off-gases are captured in the acid plant to produce sulfur products. During the early years of production, the surrounding environment suffered from high SO2 and dust emissions. The first acid plant started in 1947, a few years after commissioning of the smelter. The flash smelting method was developed and commissioned in 1949. This created the basis for today’s environmentally sound metal production. Recent air emission reductions are related to treating lean ventilation and granulation gases. Emissions from the stacks are monitored with continuous measurement devices. SO2 and PM10 concentrations are also measured from the residential area and reported online in cooperation with Harjavalta community and other local industry.INTRODUCTIONProductionBoliden Harjavalta Oy smelts copper and nickel concentrates and refines copper in the western part of Finland. The copper concentrates come from external copper mines mainly in South America and Europe. Concentrates are unloaded at the Pori harbor and transported to Harjavalta by train from a distance of about 60 km. Boliden Harjavalta Oy has operations in Harjavalta and Pori. The smelter in Harjavalta produces copper anodes that are transported via railway to the copper refinery in Pori. The anodes are electro-refined into copper cathodes and by-products like Se, Ag, Au and Pt/Pd concentrate. In the Harjavalta smelter SO2 containing gases are delivered to a sulphuric acid plant where sulphuric acid and liquid sulphur dioxide are produced.Our nickel smelter smelts nickel concentrates on a tolling basis to produce nickel matte for customer needs. SO2 containing off-gases are delivered to the sulphuric acid plant for sulphur capture and modification into products.All our operations are certified according to the Quality, Environmental and Occupational Health and Safety Standards ISO 9001, ISO 14001 and OHSAS 18001. Boliden Harjavalta Oy was the first company in Finland operating in the metal and technology industry to be certified according to the Energy Management Standard EN 16001, currently this certification is done according to ISO 50001."

Jan 1, 2012

A model was developed to facilitate secondary tailgate support selection based on analysis of over 100 case studies, compiled from two different surveys of operating longwall coal mines in the United States. The ALPS (Analysis of Longwall Pillar Stability) program was used to determine adequacy of pillar design for the successful longwall case histories. A relationship was developed between the secondary support density necessary to maintain a stable tailgate entry during mining and the CMRR (Coal Mine Roof Rating). This relationship defines the lower bound of secondary support density currently used in longwall mines. The model used only successful tailgate case history data, with adequate ALPS SF according to the CMRR for each case. This model facilitates mine design by predicting secondary support density required for a tailgate entry depending on the ALPS SF and CMRR, which can result in significant economic benefits.

Jan 1, 1996

There are multiple stages in a mining operation that a mining engineer has to draw polygons to be used as operation guidelines. These polygons are drawn by hand and based on engineer?s experience. However, having automatic procedures for forming the shapes can increase the quality and decrease the efforts required. These shapes need to be homogenous in grades and rock types so that the quality and dilution of material sent to the plant can be estimated with the good approximation. In this paper, a clustering algorithm with shape control is introduced which can provide reasonable guidelines for all the aforementioned shapes by manipulating its parameters. At the end, implementations of the algorithm on a small part of a gold deposit with different mining strategies is presented and evaluated based on homogeneity of grade, rock types and determined destinations as well as the shape.

Feb 27, 2013

By H. E. Lee, D. Ingvoldstad

AT Bunker Hill the original charge storage and preparation system was installed in 1917 to accommodate lead-silver gravity mill products. Only minor tonnages of wet fines such as vanner and flotation concentrates were received. Charge flux and diluent requirements were provided by an ample supply of siderite middlings and coarse lime-rock. While oversize material was crushed through %-in., the use of roll crushers in series resulted in a more or less granular, free-running charge of adequate porosity. Under such conditions, receipts could be proportioned directly from receiving bins, and suitable blending was obtained by passing the resultant layered composite through a small Stedman disintegrator. This elementary system served well for production and smelting of an extremely lead-rich sinter, in the low column blast furnace. Here sinter physical quality is less critical, and appreciable quantities of raw flux and oxidized ore may be charged directly to the blast furnace without seriously impairing furnace capacity. Prior to 1938 the relative proportions of zinc receipts were low and extraneous flux requirements at a minimum. However, subsequent war-inflated zinc demands brought marked increase in fine concentrate and slimy zinc leach residue receipts and an abrupt introduction to smelting a more refractory zinciferous charge. The higher temperature demands of the more refractory zinciferous charge required a higher smelting column and the higher column, in turn, rendered the blast furnace less receptive to improperly prepared feed. Inadequate presinter processing facilities prevented the production of acceptable sinter, and blast furnace production declined to 50 pct of former capacity. In view of a prevailing contention among lead metallurgists as to the deleterious action of high zinc slag on blast furnace capacity, it was natural to overstress this factor and to concentrate on possible changes in furnace design. Another interpretation was that primary correction should be sought through expanded sintering facilities. This divergence of opinion, together with the extreme material shortages of the 1940's, delayed corrective

Jan 1, 1957

By J. Utt

Recent developments in circulating fluidized bed (CFB) once-through supercritical technology (OTSC) have enabled this technology to be offered as a utility-scale alternative competing head-to-head with pulverized fuel (PF) OTSC offerings. One clear example is the CFB supercritical unit at the Lagisza Power Plant in Poland, owned by PoludniowyKoncernEnergetyczny SA (PKE). This unit has now been in commercial operation for three full years, exhibiting very good performance, and has validated Foster Wheeler?s performance model at this utility scale as well as for units in the 600 MWe and 800 MWe size ranges offering net efficiency of ~43 per cent (LHV basis). This operating unit has also proven the use of the world?s first FW/BENSON? vertical-tube OTSC low mass flux technology. Since the Lagisza original international tender specified OTSC PF technology, it is important to note that the alternative selection of CFB OTSC technology over conventional PF technology is of historic significance, not only for the validation of the CFB supercritical platform as a viable alternative to conventional PF technology, but it also positions the CFB OTSC with fuel flexibility for offering of sizes up to and including 800 MWe units. This paper explores the differences between CFB OTSC technology and standard PF OTSC in utility power generation. Selection criteria, fuel burning range in both technologies, and other selection drivers are discussed. Economic analysis of both technologies, based on existing cases, is also provided. Also discussed are the technical advantages and uses of each technology. Foster Wheeler has recently been awarded a contract for four units of CFB OTSC technology, which utilizes a 2 on 1 configuration of two 550 MWe CFB OTSC boilers on two single 1000 MWe turbines. Essentially this provides a fuel-flexible low-emissions alternative to a 2 × 1000 MWe solid fuel power block.

Jan 1, 2012

By Russell E. Griffin

The current state-of-the-art of fire and smoke detection technology is reviewed from the standpoint of suitability for use in underground metal and nonmetal mines. Detection modes, fire signatures, and environmental considerations are included. Preliminary results of long-term in-mine tests are presented.

Jan 1, 1979

By A. Habibi

The FMC Westvaco Trona Mine is located near Green River, Wyoming and has an annual production of 4.5M tons. Trona is an evaporite mineral that is processed into several products, mostly soda ash. The underground mine has two active development panels and one longwall (LW) panel. The mining horizon is about 500m below surface and the surrounding strata liberates methane. Three surface-based, blowing fans provide ventilation air as a positive pressure system. The mine operates a 225m long LW face, built by Joy Mining Machinery. Headgate and Tailgate developments are driven with four entries. The recovery room, at the end of each panel, is 8m wide with three access chutes. Additional recovery room support comes for concrete blocks used with a center to center spacing of 1.5m. As the LW enters this pre-driven recovery room there are notable responses and shifting ground stresses. This study was undertaken to measure the ground response using seven vibrating wire displacement transducers. These devices were used to monitor the convergence as the LW approached the recovery room. The methane concentration in the air ventilating the recovery room was also monitored. The correlation between convergence and gas liberation was then studied. The results show that the convergence varies from 0.1m to 0.25m along the length of the recovery room. Ventilating the recovery room becomes critical as methane is liberated from oil shale as the more plastic floor material is disrupted. Appropriate methods are employed to ventilate the recovery room.

Feb 23, 2014

By T. BoBo

"In the 1990’s metal prices were trending in a long term decline and the usual cost cutting exercises were adopted. Cuts to research and development made innovation difficult and the outlook was grim. But necessity is a strong motivator, and these conditions spurred the Mine-to-Mill movement which optimised across organisational “silos” and utilising new technology tools, innovative software and increased computing power. Many applications of Mine-to-Mill exploited the fact that comminution is usually the site processing bottleneck, and that blasting is more efficient at breaking rock than grinding. This approach sought to: • Understand and characterise rock breakage from mining to the mill • Develop models and simulators for blast design, fragmentation, crusher and mill circuits • Develop tools to measure in real time the particle size distribution of rocks on conveyors and Run of Mine (ROM) muckpiles • Ensure effective communication across the silos between geologists, blast design engineers, mining engineers and metallurgists These methods and the technology tools available in the 1990s were widely adopted at numerous sites around the world with significant benefits. SAG mill throughput increases of 10-20% were common. This was the advance the industry desperately needed. It was low capital cost; it was obvious. It was here to stay. Except, in too many cases, it didn’t. In the minerals price boom of the 2000’s Mine-to-Mill was no longer necessary to “survive”, even though it was still good business. Some operations, including some of the early success stories, slipped back to old habits of optimising within organisation silos instead of across them. Fortunately, other operators still embraced Mine-to-Mill and developed new techniques. Mine to Mill was still successful, but it not as widely adopted as we had expected it to be.Now the boom has ended and operations are again under cost pressure. Since these are the same circumstances that created Mine-to-Mill, it seems time to achieve the wider adoption. Since the 1990s many new or advanced technology tools are available for Mine-to-Mill projects: blast-hole sensors, new explosives formulations, new blasting techniques and modelling, ore tracking devices, improved image analysis to determine size, texture and colour of coarse ore, grade sensors, whole-stream simulation tools, even more powerful computing hardware and data analysis software. If we could achieve so much in the 1990’s, how much more can we achieve today when we have the same imperative, the same potential and a larger number of high technology tools?"

Jan 1, 2017

By Brent Duncan, Doug Harding, Bob Stier

The 73rd Street Tunnel Project is part of “The Tunnel and Reservoir Plan” (TARP)also known as the Deep Tunnel Project, and is located in the Village of Bedford Park, County of McCook, State of Illinois. The project consists of a ø 4.42 meter × 2,060 meter long (14´-6? bore, 6,760 foot)tunnel. The completed tunnel is used as a bypass tunnel for the McCook Cup Reservoir Project. The project was awarded to Affholder Inc. of St. Louis, in 2000. The paper describes the project in which a new, high-powered open gripper type main beam machine was used in which high advance rates have been achieved using conventional muck haulage techniques. Features of the project include the installation of rock support consisting of counter-sunk rock bolts that are required to be pull-tested for strength per project specifications. Installation and testing of the bolts are done during the boring cycle. Muck haulage was done by conventional muck car train and hoisting at the construction shaft. As the site layout did not include a tail tunnel, the trains needed to be shuttled at the shaft bottom. Even with the bolting requirements and the muck haulage without a tail tunnel, the Affholder site personnel still achieved high advance rates on the 73rd Street Project.

Jan 1, 2003

By U. Paschedag, H. Bussmann

"Bucyrus manufactures the most comprehensive product portfolio of mining equipment worldwide. Its mission is to have a positive, lasting effect on our world. Bucyrus makes sustainable development a fundamental way of doing business through economic, environmental and social initiatives that support, educate and benefit our employees, customers, shareholders and other stakeholders. Our participation in GRI (Global Reporting Initiative), a network-based organization that has pioneered the most popular sustainability reporting framework will be discussed as well as examples will be given on each major field of engagement. Two examples from surface machinery are most fuel efficient haul trucks as well as the Highwall mining system which allows access to coal reserves which are lost not making use of this kind of system. Two examples from underground machinery are Bucyrus’ automated plow systems for the mining of medium and thin coal seams with minimum rock and Bucyrus’ intelligent CST drive system for high-powered armored face conveyors (AFCs) for efficient use of energy."

Jan 1, 2011

By Harry: Lobb Verakis

Mining operations have made tremendous strides in improving the safety of blasting as shown by the significant and continual decrease in fatalities and serious injuries. Advances in blasting technology and blasting practices have played a significant role in reducing fatalities and injuries. However, even with the decline of fatalities and injuries blast area security continues to be by far the leading factor in blasting accidents. Even though there continues to be an increase in the use of industrial explosives and blasting agents in the U.S.A., the decline in fatalities and injuries from blasting accidents has persisted.

Jan 1, 2010

By W. J. Miles

At the beginning of the 20th century, barite was a mineral of minor importance in the USA. Its primary use was to extend lead oxide in white paint. Barite also added the special qualities of hiding power and flatness to paint. Because white lead sometimes turns black or yellow and barite does not, ground barite became a pigment on its own merit. Barium chloride was added to bricks before firing to stop efflorescence when exposed to weather. Barium carbonate or nitrate added luster and brilliance to glass. Barium chemicals were added to refining sugar, enameling iron, making oilcloths and paper collars, and in the manufacture of paper, artificial ivory, rubber and lithopone. Lithopone became a major paint ingredient in the 1920s; its use lasted until the 1950s, peaking at 150,000 metric tons of barite in both 1937 and 1947 for the manufacture of lithopone. Later in the 20th century, titanium dioxide replaced lead oxide, barite and zinc oxide in the coatings industry. In the 21st century, barite is used as a filler, extender, or weighting agent in products such as paints, plastics, and rubber. Some specific uses include its use in brake and clutch pads for automobiles, automobile paint primer for metal protection and gloss, add weight to rubber mud flaps on trucks, and add weight to the cement jacket around petroleum pipelines under water. In the metals casting industry, barite is part of mold release compounds. Because barite significantly blocks X-ray and gamma ray emissions, it is used as aggregate in high density concrete for radiation shielding around x-ray units in hospitals, nuclear power plants, and university nuclear research facilities. Ultra-pure barite consumed as liquid is used as a contrast medium in medical X-ray examinations. Barite is the raw material for barium chemicals, such as barium carbonate, which is an ingredient in faceplate glass in the cathode-ray tubes of televisions and computer monitors. In the 21st century, barite industrial uses account for an estimated 78,000 tons per year in the United States. Another barite use was patented in 1926 by the oil industry. In this patent, barite is primarily used as a non-abrasive weighting agent for drilling for oil and gas exploration and production. As a weighting agent, it provides the downward force in a water based or oil based drilling fluid for cutting through rock with a tri-cone diamond drill bit. In order to minimize the wear on the drill bit and drill stem, minimum abrasion of the weighting agent is preferred. In recent years in the USA, 95% of the barite produced and about 80% on a world basis are used as a fluid weighting material during the search for oil and gas. During the latter part of the 20th century, barite was used in the drilling mud of oil and gas wells, particularly for wells deeper than 2000 meters, and petroleum well drilling demand for barite became the mineral?s major end use during economic expansions after World War II and subsequent increased use of oil and gas in the USA. The profitability of oil and gas production had a strong effect on the number of drill rigs and consumption of barite. The United States was the leading petroleum well drilling country starting in 1970, reaching 4,530 drill rigs in December 1981, and was the largest consumer of barite. In the USA, record highs of about 2.6 million tons of barite produced and 4.3 million tons consumed were reported in 1981. From 1997 to 2006, barite production declined from 662,000 to 589,000 metric tons. However, USA imports increased from 1,470,000 to 2,530,000 metric tons for lump barite. World production of barite increased from 6,780,000 to 7,960,000 metric tons during the same period. Table 1 (see Appendix) lists USA production, imports and exports and world production from 1997 to 2006. Major sources of imported barite include China, India and Morocco. Table 2 (see Appendix) lists the USA imports and price of barite by country. China, India and Morocco are the three largest exporters of barite to the USA and the world. Vietnam is a new producer, beginning in 2006. IMPACT OF CHINA ON DRILLING GRADE BARITE In the 1970s or before, China began supplying barite to the world drilling market in order to help develop their economy. When China first entered the barite export market, their high production volume, low pricing and low ocean transport expenses to the Gulf Coast forced barite producers in the USA to supply only regional markets, such as Battle Mountain Nevada barite for the western and Rocky Mountain states and Canada. Until recently, it was China?s government policy for domestic consumers to use barite below the API 4.20 specific gravity specification, leaving higher grades for export, but this is no longer the case. In recent years the internal demand for barite in China increased tremendously as their economy rapidly developed. China reduced their former 15% VAT tax rebates to 5% for Chinese barite producers, and then eliminated all VAT tax rebates on December 15, 2006. On the supply side, some high-grade barite deposits in China have been depleted. In particular, the low heavy metals sources are less plentiful. Additional mine capacity is being developed, but the new mines are underground and therefore costs will be higher. China?s appetite for other raw materials has tied up a large portion of the world?s bulk vessel fleet, including Panamax vessels (preferred for barite ore transport). Ocean transport freight rates have increased in recent years, and receiving ports in the USA are congested with imports of higher-added-value products. The Panamax Index, which tracks maritime shipping rates, more than doubled in 2006. China has also devalued its currency from RMB8.30 to RMB7.80 per dollar. These factors are driving up the import price of crude and ground barite for drilling. In addition, in the USA, rail congestion and high fuel prices led to higher trucking rates, increasing the delivered cost of ground barite to oil customers. India is the second largest supplier of crude barite to the USA and world drilling market. It produces all of its barite from a single deposit in the Cuddapah region of Andhra Pradesh State. More than 90% of production comes from the State-owned Andhra Pradesh Mineral Development Corp., and the government continues to closely control production, export volumes, and prices. India saw a dramatic increase in barite prices as a result of its last 3-year tender in 2004. However, in 2004 and 2005 their shipments of crude barite to the USA were not significant. In 2005, India began supplying barite pulverized to meet API specifications to the Gulf Coast. In 2006, Indian production was reduced owing to severe flooding in November 2005 that curtailed mining until mid-April 2006. Morocco has been the third largest supplier of crude barite to the USA and world drilling market. In 2003 and 2004 their shipments of crude barite to the USA were not significant. In 2005, Morocco resumed shipment of crude barite to the Gulf Coast and began supplying barite ground to meet API specifications to the Gulf Coast.

Jan 1, 2009