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When it comes to processing industries, speed matters. More precisely, the faster/greater the throughput of finished product out the door, the more quickly money can flow back into the corporate coffers. In this quest for greater output, no processor can afford any weak links in the chain. Especially in the case of bulk solids operations, any one piece of equipment that slows the process down jeopardizes the profitability of the entire plant. However, one clay processor uncorked a pre-existing bottleneck by replacing its outdated separating equipment with a new design that immediately improved output.

Jan 1, 2007

By Katzer R. Klimpel, J. Sewell

Dr. Roussey Roussev The use of chemical additives on grinding is of significant importance considering the high energy consumption of grinding processes. My research indicates that the dispersant approach explains the effects, in this particular case of wet grinding. Further, the dispersant approach combined with torque measurements give the possibility of clarifying the mechanisms involved when using grinding aids. I find the conclusions derived from the data obtained to be correct and useful for grinding. In general, I agree with the explanations. However, I would like to discuss several additional points that I consider to be important, and in the same time to mention some of my own results from investigations similar to those presented in the study under discussion. The "bed volume concept" and the change of slurry viscosity explain adequately the data plotted on fig. 3, in conjunction with Figs. 1 and 2. However, the significant increase of the average torque in the case of 83% solid with XFS-4272 introduces the necessity of establishing the optimum of percent solid when dispersant is used. For example, the optimum percent of solid for different materials varies. One of the reasons is the material's mass density. On the other hand, it is necessary to determine the concentration of the chemical used. Because of this, it would be interesting to know how the cited concentration was selected. The supportive discussion and verification by Dr. Roussev, with results similar to that of the paper, is appreciated. I will try to answer the additional questions he has raised. To begin with, the mill was fitted with six lifters of approximately one-quarter inch height. There has been extensive lab and plant level work to understand downstream influences of using dispersants like XFS-4272*. In sulfide ore processing, which is the area in which most industrial scale testing has been performed with this approach, neutral to positive influences have been observed. For example, positive effects (e.g., increased recovery) have been noticed in flotation operations involving ores that have a tendency to produce excessive slimes upon grinding. (1) Also, the use of a dispersant has been shown to demonstrate a positive influence on classification by improving the sharpness of separation and preventing a decrease in d50 value that usually accompanies increasing flow rates to classifiers.(2) The biggest potential downstream problem is in thickening, which at the dosages involved, has not been a problem in plant scale usage. The commercial price of dispersants like XFS-4272 is quite variable depending on source, concentration, etc, but a typical cost of XFS-4272 to achieve a 10% increase in throughput in industrial mills has been between 20 and 35- US per ton of feed ore (1981).

Jan 12, 1982

By Mengxiong Guo, Xuxin Shao

The recent depressant research is summarized, and a new kind of depressant (SCO) has been put forward in this article. Using Na-oleate as a collector and SCO as a depressant, separation of dolomite and phosphate was studied. When SCO was added in the concentration range of 80 g/t to 2kg/t at pH 9.5 ± 0.2, dolomite was absolutely depressed, and apatite kept its floatability. Interestingly, in the mixture of phosphate and dolomite, the dolomite floated. The reasons for such a behavior are investigated through flotation and electrokinetic studies. It was found that the adsorption of dissolved species on dolomite and phosphate resulted in reverse flotation. A concentration of 31.59% P205 and 83.87% recovery of P205 was obtained from the mixture of phosphate and dolomite (2:1) with 26.6% P205 using 210 g/t SCO and Na-oleate 4.93*10-5 M at pH 9.

Jan 1, 1989

By David M. Lake

Conversion to trolley assist is a means of minimizing diesel fuel consumption, which in many mining situations offers a rapid payback of capital investment plus the inherent flexibility and maneuverability of truck shovel operation. When diesel electric truck shovel mining operation with trolley assist is compared to alternative mining methods such as conveyor systems, the trolley assist system can be easily justified in terms of return on investment, payback and increased productivity. A review of present technology, performance requirements and past experience in the mining industry has led to the development of a trolley assist system for diesel electric haulage trucks which, is proven in the mining environment, offers significant reduction in fuel consumption and increased productivity.

Jan 1, 1981

By Ergin Arioglu, Werner Burger

"SUMMARY The Istanbul Strait Road Crossing Project includes a 3.34 kilometer subsea tunnel excavated by TBM with an excavation diameter of 13.71 m. The tunnel will incorporate two road decks, each employing two traffic lines and shoulder with the daily capacity of 100,000 light vehicles. The tunnel alignment crosses full face rock sections with heavily fractured zones due to tectonic events as well as a long central stretch of difficult mixed face and very variable soft ground conditions. The demanding ground conditions and the large diameter in combination with realized face pressures well above 10 bar required a highly specialized and well adapted TBM. The paper describes the project challenges and the related technical solutions incorporated within the TBM design as well as the real site experience. INTRODUCTION In 2013, a 13.71 m diameter Mixshield was manufactured in Germany for the Istanbul Strait Road Crossing Project. The delivery of the TBM in late 2013 was a major milestone for the Istanbul Strait Road Crossing Project, also known as the Eurasia Tunnel Project. The Eurasia Project (www.avrasyatuneli.com.tr/en) consists of a 14.6 km route including a 5.4 km tunnel segment in its central part crossing the Bosphorus. The 3.34 km subsea section of the tunnel was excavated in closed mode using a Mixshield TBM. The remaining tunnel length is constructed by sprayed concrete lining (SCL) method followed by a cast in place (CIP) lining or by cut and cover (CC) structures for the TBM transition boxes (Figure 1, right). Other project sections on the European and Asian side consist of upgrading and widening surface access roads towards the tunnel. Conceptual ideas of connecting Asia with Europe via a tunnel crossing the Bosphorus have been around for an extended time and only became realistic towards the end of the 20th century based on significant technical developments in mechanized tunneling. Feasibility studies for a new Bosphorus crossing in 2003 and 2005 confirmed and suggested a road tunnel in its present alignment as the preferred solution. Following an international tender process the Ministry of Transport, Maritime Affairs and Communications of Turkey assigned ATAS, a special purpose company formed by Yapi Merkezi (Turkey) and SK E&C (South Korea), to design, build and operate the Eurasia Tunnel Project. The Implementation Contract was signed in February 2011. In 2012, Herrenknecht AG was selected as the supplier for the 13.71 m Mixshield TBM."

Jan 1, 2016

By Fred W. Brackebush

In underground stopes that require more than minimal support, backfill is almost universally used. The term cut and fill stopingis used in a broad sense in this section, which describes underground mining methods requiring support. Support in stopes can be classified as local or short-term and general or long-term. Local support for the back of a stope, for example, can be accomplished with rock bolts or timber stulls. General support for the walls of the stope is provided by backfill. Local support provides a safe working place for the stope miners. General support, provided by backfill, preserves the access way to the stope and prevents large scale dilution of ore. Supported methods are a set of cut and fill stoping methods using backfill for general support and various local support methods. his section is subdivided into three chapters: 19.1 Cut and Fill Mining 19.2 Excavation Techniques 19.3 Backfilling Methods

Jan 1, 2008

By David R. Delling

Introduction In 1967, Tenneco acquired Kern County Land Co. The primary reason for the acquisition was to obtain Kern's agricultural, manufacturing, and oil interests. Included in the Kern portfolio were the core of Tenneco's present sodium leases in Sweetwater County, WY. This lease base has been ex¬panded and now consists of 62 km2 (24 sq miles). Beneath this property lies more than 500 Mt (550 million st) of economic trona ore. Following the Kern acquisition, Tenneco continued exploration and feasibility studies concerning the trona leases. The effort was accelerated in 1976. Tenneco was attracted to trona because of the favorable lease position it held, the growth rate of the Wyoming industry during the 1960s and 1970s, and the prospects for a long-term, stable business enterprise. The reserve picture was certainly attractive to a company long accustomed to the never-ending struggle to replace oil and gas reserves. In 1978, Wyoming was a boom area that had experienced rapid growth for a number of years. Unemployment was very low and vacant housing nonexistent. The prospects for soda ash were somewhat different in the 1970s than now. But it was recognized even then that a new producer would have a challenging task to compete in this business. Tenneco knew the capital burden required to build a grassroots facility during inflationary time, would have to be offset elsewhere Since labor and energy are the dominant direct costs in mining trona and producing soda ash these factors have always received a great deal of attention. Contracting and permits Environmental monitoring on the site began in late 1977. With the already mentioned considerations in mind, engineering began by mid-1978. Brown & Root Inc. was selected as the general contractor for the project. S. A. Scott & Co. was the engineering subcontractor for the mine shafts, hoists, ventilation system, and miscellaneous mine facilities. Frontier-Kemper was awarded the contract for sinking the two mine shafts. Acquisition of numerous federal, state, and local permits occupied all of 1978 and 1979. The Wyoming Industrial Siting Permit, which addresses socioeconomic issues, drew the most public interest. Siting issues were all satisfactorily resolved by negotiating reasonable stipulations with various local governmental units, school districts, and the like. Site location The Green River project location is not truly remote. It is located within 5 km (3 miles) of Interstate 80 and only about 32 km (20 miles) west of the city of Green River. Nevertheless, a substantial investment had to be made in communication and utility links to the site. These included: • A 14-km (8.5-mile) rail spur connecting with the Union Pacific Railroad at Bryan, WY. This spur has four bridge structures including one crossing Interstate 80. Most soda ash is shipped by rail, and coal is received over this line as well. • A paved 5-km (3-mile) roadway connecting to Interstate 80. • A powerline extension of about 27 km (16.5 miles), along with two new substations. • A 24-km (15-mile) waterline connecting the plant to a pump station on the Green River. The site is located on gently sloping terrain at an elevation of about 2.1 km (6800 ft). Ground conditions are good for construction. Weathered bedrock lies near the surface in most places. Geology The general geology of the Green River Basin has been well described previously. Tenneco's ore is in several superimposed evaporate beds. But the bulk of it is present in Bed 17, located about 457 m

Jan 10, 1985

By Thomas V. Falkie, Howard L. Hartman, Bruce R. Palmer, Donald W. Gentry, John E. Frost, Peter T. Luckie, Michael K. McCarter, Lee W. Saperstein

Education in the mineral engineering professions is in the same flux and turmoil as is the entire minerals industry. Overcapacity in some areas, undercapacity in others, and the constant fear of substitution plague education as well as industry. The exercise in long-range planning that The Society of Mining Engineers has undertaken gives an excellent opportunity to examine the problems and the opportunities in minerals engineering education. Charge to the Committee The Educational Activities Committee was asked by the Long-Range Planning Commission (LRPC) to examine SME's future role with respect to "education policy, role and organization, education department, education board, continuing education, short courses, and extension courses." This examination is timely. It follows a reorganization of SME's Education Board designed to make the Board more efficient in its operation, more responsive to the needs of education, and more active in the setting of Society policy on education. In addition, the roller-coaster cycle of boom and bust experienced by the mineral industry in the last decade has been shared by the minerals schools and has created enrollment problems that need to be addressed promptly. Within SME there is much experience on educational issues to draw from and many problems to solve. Major Premise The committee is emphatic in espousing the philosophy that SME should support, in word and in deed, the highest possible standards that can be maintained by the minerals schools. As guardians of the various mineral engineering and scientific professions (geological engineering, geophysical engineering, mineral engineering, mineral processing engineering, and mining engineering), it is appropriate for the Society to be a watchdog for academic standards. One member of the committee put it succinctly, "We need to educate engineers and technologists, not muckers." A vital and profitable minerals industry needs professionals educated by good teachers, equipped with the most modern available methods, techniques, and knowledge, and challenged by their education to be innovative contributors to their chosen profession. Such education occurs only if it takes place in an institution that is vital and challenging. SME can enhance the quality of its membership if it works to maintain the standards of the schools that graduate new members. Education does not end with the award of a degree. It is appropriate for SME to strive for continued technical quality of its membership. To this goal, SME should maintain its attention to the process of licensing professional engineers, and it must continue and expand its efforts in continuing education for the membership. Recommendations for Action The following recommendations were submitted by the committee and then amended slightly by the full commission. The recommendations have support from the SME Board. • SME Education Coordinator and Staff Department of Education - Staff support for education should be provided by someone with experience in engineering education who would be appointed as SME Education Coordinator for all educational activities: accreditation, continuing education, student affairs, and liaison with mineral schools. The Board has approved an Education Coordinator and the position has been filled. • Advisory Committee on Education - SME should recognize, by amending its committee structure, that functions important to education are filled by SME-appointed representatives to the Accreditation Board for Engineering and Technology (ABET), its Engineering Accreditation Commission (EAC), and Technology Accreditation Commission (TAC). It is suggested that these persons, plus the chairman of the Education Council, plus two other persons appointed by the SME Board, form an advisory committee on education. The Board has approved this. • Education Council - The recently organized Education Board, having full agendas for its committee meetings and having

Jan 6, 1984

By Neil and Associates

Seismic tomography is one of several additions to the suite of geotechnical engineering tools for use in various underground rock and mineral geologic structures. Seismic tomography is a method for reconstructing a cross section of an object based on attributes of seismic energy that have been transmitted through the object. The in-seam seismic tomogram provides a dataset that can be graphically portrayed in a color-coded format that is then used to infer relative stress concentration (Fig. 1). During the past several years, the US Bureau of Mines (USBM) at its Denver, CO and Twin Cities Research Centers in Minnesota funded several innovative hardware and software developments. These were directed toward use of in-seam seismic tomography for underground geologic strata evaluations. These preliminary investigations have matured into well-defined and field-proven technical advances for improving ground-control decision making in the mining industry.

Jan 1, 1996

By H. Haselhuhn

Filtration of hematite ore slurries can be a bottleneck in some hematite processing plants due to inadequate filtration rates caused by the dispersion of fine particles. Flocculation of fine particles in the slurry decreases the specific cake resistance of the filter cake allowing for increased filtration rates. CO2 sparging of hematite slurry was shown to increase the filtration rate by altering the pH and the surface chemistry of the particles. It was shown that an increase in filtration rate of 278% can be accomplished by lowering the pH from 11 to 6.5 using CO2. This was attributed to increased flocculation of hematite and silica particles in the ore.

Jan 1, 2012

By R. Shields

"Hard rock mines move large volumes of material, which can cause the conveyors that are essential to this movement to suffer lots of problems, including carryback, spillage, dust and belt wander. Many of these issues are created at the transfer points where the belts are loaded.This article provides an overview of the latest transfer point systems that incorporate safety and serviceability by design as well as a report on recent projects. One project is the Conveyor B Transfer at the Coeur Rochester silver mine near Lovelock, NV. Here, performance was improved with the installation of belt support cradles, engineered chute walls with external wear liner, and a compact dust collector. A second project is the improvement of belt support idlers and skirtboard sealing in a long loading zone of a conveyor under the concentrator at an Arizona copper mine.The importance of transfer pointsConveyors are essential in mine material handling. Their performance will often make the difference in mine productivity and profitability. A key to conveyor performance is the transfer points where the conveyor belt is loaded and discharges. At these transfer points, many of the problems encountered with the conveyor system are created.The problems that arise at the transfer stations include off-center and segregated loading, mistracking, blockages and plugging. And there are a variety of problems originating with fugitive material — cargo released in the form of carryback, spillage or airborne dust — that are created or exacerbated in the transfer points. These fugitive materials turn into other conveyor-related problems, including shortened component life, unplanned outages for conveyor maintenance, unexpectedly high labor costs for maintenance and cleanup, worker health and safety problems and issues with community relations. The U.S. Mine Safety and Health Administration estimates that 85 percent of conveyor maintenance is a result of fugitive material at conveyor transfer points.Technologies to improve transfer pointsA number of techniques to improve the performance of conveyor transfer points have been developed. They include:"

Jan 11, 2017

By D. N. Adams, M. M. Wong, M. J. Robison

Islais Creek Contract E, a transport/storage tunnel in San Francisco, was visited on a fieldtrip during construction by delegates to the 1995 RETC. This paper is a follow-up to that fieldtrip. The project’s two tunnels are 3.7 m and 3.2 m finished diameter, 155 m and 77 m long, respectively. The contractor used 1,000 overlapping jet grout columns to pre-treat the weak Bay Mud along the tunnel alignments, then mined them with an open faced tunnel shield, eliminating the need for compressed air tunneling. This paper documents the jet grouting program and the tunneling operation used on the project.

Jan 1, 1997

By R. S. Conti, M. R. Krump, C. P. Lazzara Ph. D., R. L. Derick, L. L. Chasko

A mine fire is one of the most challenging safety issues facing a mine operator and can occur at any location underground. The National Institute for Occupational Safety and Health (NIOSH) and the Twentymile Coal Mine, CO, conducted in-mine experiments to determine the capability of high-expansion foam for addressing underground fires. The tests were conducted in sloping entries with high-capacity diesel-powered foam generators. The following results were observed: a well-designed, maintained and properly operated high-expansion foam generator can propagate a foam plug hundreds of feet in steep upward-sloping (20%) multiple entries against a ventilation pressure; stoppings and partitions designed to contain the foam plug in upward-sloping entries must be substantially constructed; and the predicted quantity of foam concentrate can be significantly less than the actual amount used, due to foam losses, such as bubble breakage on dry surfaces. This paper describes the production of high-expansion firefighting foam and discusses the in-mine experimental tests and results.

Jan 1, 2010

By J. MacFadyen

The U.S. cement industry experienced its best year ever during 2004 in terms of production and shipments of cement. Clinker, portland and masonry cements production and shipments were up considerably. Clinker production as reported to the U.S. Geological Survey (USGS) was 87.75 Mt (96.73 million st), an increase of 5.4 percent. Gray and white portland cement production from domestic and imported clinker was estimated to be 91.6 Mt (101 million st), up 5 Mt (5.5 million st) from 2003.

Jan 1, 2005

By understanding the ore breakage characteristics and utilising comminution circuit modelling, the benefits of SAG mill feed size manipulation can be readily assessed. This paper looks at the benefits and problems of total secondary crushing of mill feed and advocates partial secondary crushing as a means of improving grinding efficiency for certain hard ores. Case studies are reviewed for new and existing SAG mill circuits.

Jan 1, 2007

By Anthony Leddin, Gillian Dooley

This paper is concerned with mineral policy in Ireland and how it might be improved to encourage more exploration and investment in mining in the country. The approach is to first outline the main desirable characteristics of a comprehensive national mineral policy document. This aspirational document is then used to assess the current regulatory, legislative and fiscal frameworks for mining in Ireland. The analysis also contains a brief account of the history, structure and characteristics of the mining industry in Ireland. The main focus of the paper is to identify those aspects of the existing framework that erode Ireland’s attractiveness to mineral investment and to suggest policy improvements.

Jan 1, 2005

By Harry E. Holzschuh

The two Agrico Chemical Company self unloading Phosphate Rock barges put into service in 1976 operate at over their design carrying capacity. Each barge now carries 26,000 short ton instead of the planned 25,000 short ton at 32 foot of draft. They are in service between Agrico's Tampa, Florida Terminal and the Donaldsonville, Louisiana Fertilizer Complex, moving a total of 2,500,000 short tons each year. This was the first use of the Parascrew design for a marine application. The barges, with their 3,000 STPH unloading and matching loading rate is the vital link in this total transportation and handling system. Rock is moved from the Pierce, Florida Mines through the Tampa Big Bend Terminal, across the Gulf of Mexico, and up the Mississippi to the Agrico Faustina Phosphoric Acid Plant 30 miles below Bacon Rouge, Louisiana. The trip from the terminal to the plant is 600 miles and the turnaround time is just about six days. Seven years operating experience has proved that the system works. Fittingly, the two barges are named the "Faustina" and the "Pierce". They have a beam of 85-feet and are 495 feet long. folded depth is 43 feet, with a ballasted light draft of 19 feet and a typical loaded draft of 32 feet. There are four separated holds with the machinery room located forward of 101 hold. Each hold is 51 feet wide at the coamings with an 18 foot straight section on the side, and a 24 foot long, 600 slope sheet for a 23 foot clear reclaim width at the bottom. The Parascrew in each of the holds is 37 feet long between the bearings and is supported on a 14 inch diameter hollow shaft. The screw pitch varies and the diameter of the flights step up from l'-9" diameter to 2'-6" diameter on the discharge end. By sloping the centerline, a minimum four inch bottom clearance is maintained across the hold. Some bending of the tube does take place.

Jan 1, 1983

By M. J. Friedel

The U.S. Bureau of Mines (USBM) investigated the use of seismic refraction tomography (SRT) for identifying changes in pillar loading at the Foidel Creek coal mine near Steamboat Springs, CO. The inherent three-dimensional problem of directly imaging coal pillar conditions is reduced to a single plane by considering only the load transmitted from the pillar to the adjacent floor rock. Floor strata velocity tomograms (at two pillar locations) illustrate that loading conditions are non-uniform and non-unique. Also, time sequence monitoring, as the longwall face advanced, demonstrated that SRT can be used to image spatial changes in loading conditions. SRT offers the mining engineer a simple and flexible technique for evaluating pillar conditions, and thus, both present and alternative mine designs.

Jan 1, 1994

By Tianzu Yang, Weifeng Liu, Lin Chen, BOYI XIE, DUCHAO ZHANG, HUI XIAO

The oxygen-rich bath smelting process of copper dross was simulated using Factsage software. It was found that the two-step simulation results agreed better with the industrial data, especially in the speiss. Bi, Pb, Sb, As, and Cu contents in the speiss by two-step simulation differed from the industrial data by 0.6 wt.%, 0.8 wt.%, 2.6 wt.%, 7.2 wt.%, and 8.6 wt.%, respectively. Twostep simulation results indicated that the speiss partitioning of Sb, As, and Cu increased from 60.1%, 32.3%, and 27.5%to 81.6%, 67.8%, and 47.2%, respectively, with the smelting temperature increasing from 1050 °C to 1250 °C. While the metal partitioning of Sb and Cu increased from 0% and 2.7% to 15.2% and 13.3%, respectively, with the separation temperature increasing from 400 °C to 700 °C.

Oct 19, 2020

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