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By A. L. Muler

Since 1956, when Broadbent and Callcott 1 proposed to analyze breakage processes by matrix methods, several authors and their co-workers have proposed various models of grinding that, in principle, could lead to fully automated grinding circuits. In particular, Meloy and Gaudin2, Gardner and Austin3, Kelsall and Reid4, Neloy and Bergstrom5, Callcott and Lynch 6, and Draper and Lynch have, by either computer simulation or by experimental data, or by a combination of the two, verified that comminution is reasonably well described by at least two functions: a selection function and a breakage function. The stage concept proposed by Callcott and Lynch6 requires that a classification matrix be included to completely describe breakage in an open circuit rod mill. The purpose of this work, portions of which are herein described, is to accumulate sufficient information on the breakage characteristics of quartz and magnetite in an open circuit rod mill, so that several of the theoretical and experimental approaches proposed in the literature can be compared with each other. Data is being gathered to compare the experimental method used by Kelsall and paid against the stage approach of Callcott and Lynch.

Jan 1, 1968

Development of computer-based information systems is predicated on the merger of rapidly developing computer technology and growing managerial demands for information. The focus of this section is on managing the development and implementation of information systems for the 1980's. It is the experience of the majority of contributors to this volume that among unresolved problems of major dimensions in a mineral organization are those of managing the computer-based information systems resource itself. There are three major reasons for this: (1) mineral information systems are relatively new to the senior management of a mining company or a mineral organization; (2) problems are compounded by a developing technology, a new type of personnel with a changing experience/education mix; and (3) an organizational structure and location which, in many organizations, are still being examined. The three authors in this section present aspects of managing the information systems function which, based on their experience, are common to the solution of the problem. The premise that the information systems function has been placed appropriately within the entire business plan of the firm has been made by the authors in their discussion of the various aspects of the management process.

Jan 1, 1979

By A. F. Klebanov, K. N. Trubetskoy, M. Yu Khoudine, V. L. Postnikov

The information system of monitoring of mine receive layouts is being created In the "ROSUGOL" Company for the prompt analysis of the state-of-the-art of mining operations at under- ground and open cast mines of the Company, rapid and effective decision-making and elaboration of recommendations on the basic directions of enterprise development. The data bank storing the digital mapping and attributive information describing the actual background of mining operations at the enterprises of the Company is the core of the system. The Oracle database management system and the ARC1 INFO geographic information system have been chosen as basic software packages for the Project realisation. The updating of the information will be performed on a regular basis via the transmission of actual digital data on under- ground and open cast mine layouts In ARCIINFO conversion to the central office of the "ROSUGOL" in Moscow. Centralised storage of digital mapping and attributive data, database administration and navigation is effected with the Oracle software package. Access to the data in the operation mode with an interactive display map will be effected with the use of the local computer net of the "ROSUGOL."

Jan 1, 1996

By Roderick K. Davey

The objective is to develop a short-range mining plan which satisfies management and operating criteria and also "dovetails" with the long-range mining plan. In the past years, this objective was accomplished entirely by manual methods. Today, the computer is used to assist the engineer with this task. The results provided by these programs usually are incomplete and require further manual manipulation. The advantage of using the computer programs is that the program can be used to evaluate alternative plans on a first-cut basis minimizing the manual work. Subsequently, the most promising alternatives can be analyzed in more detail, commencing with the first-cut results. In this specific case history, one technique for using computer programs to assist with short-range mine planning will be discussed. Some of the basic operating and management criteria considered directly and indirectly are as follows: (1) operating criteria which include minimum and maximum shovel cut size, equipment performance, haulage roads, requirements for blending, and plant capacities; and (2) management criteria which consist of production requirements, cash flow requirements, return on investment, market demands, and availability of capital.

Jan 1, 1979

By H. Huang, J. C. Wu, C. H. Xie, Y. Q. Xue, Z. H. Zhang

Two- and three-dimensional groundwater flow models for dewatering in an opencast mine are presented. The models focus on solving special problems using numerical simulations of the opencast mine. These special problems include the drying up of the aquifer, the movement of the model boundary and the prediction of the residual head. These models are used to describe the decline of groumdwater levels in the Yuanbaoshan Opencast Coal Mine and its neighboring area during the drainage period. The simulated values agree very well with the field data. There have been several successful examples of numerical simulation for predicting the mine dewatering rate in an opencast mine. However, The hydrogeological conditions for the Yuanbaoshan Opencast Coal Mine are rather complex, and the total average flow rate is very high at 4.676 x 105 m3/d (1.65 x 107 cu ft/day). In this paper, a two-dimensional groundwater flow model in a large area is developed to solve the problems mentioned above by simulating regional drawdowns of the groundwater level during the drainage period, and a three-dimensional flow model is developed to simulate the residual head near the open-pit bench.

Jan 1, 1998

By Yu. P. Astafyev

The, control of drilling and blasting is a complicated dynamic system whose aim is to ensure safety and prepare rock of required grade and the standard level of broken material reserves Unlike other processes drilling and blasting, as an object have the following features: -a large variety of drilling and blasting methods due to specific conditions of blasting, various types of drilling equipment, schemes-of blasting, types of explosives and others; -relative continuity of drilling, the character of mammoth blasts being discrete; -increased requirements to the safety of blasting;; -a great. number of control parameters, some of them having a qualitative characteristic but not a quantitative one; -availability of feedforward and feedback with other mining processes in terms of time and space. These features predetermine the hierarchical structure of an automated system of planning and control of drilling and blasting (fig.1). The system is implemented on the basis of unity of the data base and in interre lation with other problems of controlling mining operations. An automated system of this kind makes it possible to take optimal decisions actually on all the levels and stages of operations, with rock having been blasted before extraction.

Jan 1, 1986

By Wang Yingmin, Xu Zhuyun

There are 3 steps in the process of forming a mine ventilation system, (1) selecting a reasonable ventilation pattern (included pit shaft arrangement); (2) optimizing of the ventilation network and (3) computing and outputting the flow splitting results of the network with the optimal ventilating equipments selected. In the past, the first step was relied on artificial decision-making. In order to design a common ventilation system, some ventilation experts were needed to participate or do some examinations. Even so, the design made was reasonable only for those experts. If there is a mistake in the first step, then even the followed 2 steps are best done, the losses are very difficult to retrieve. So that, the first step is very important. The development of expert systems provided an efficient means and tool for all engineering fields. This paper presents an expert system of selecting mine ventilation pattern and pit shaft arrangement. After testing many times, it is shown that the system can perform the first step of designing a mine ventilation system, and can help the experts doing their study works more efficiently.

Jan 1, 1991

By Richard L. Bullock

INTRODUCTION TO COAL MINE PRACTICES To illustrate the trends and the proportions of the various methods used to mine coal underground, Fig. 1 is useful. However, of all the underground coal mining practices in the US, room-and-pillar mining still accounts for 96.5%. This percentage is divided as follows: conventional, machine cut-33.0%; conventional, hand cut -1.7% : and continuous mining-61 .8%. As was stated in Sec. 1, Chap. 7, the term "development" means different things to a coal miner and a metal miner. Though some of the ideas and concepts presented in the first two chapters of this section are valid for all types of mines, they apply particularly to mines using noncoal methods. In coal mines (and many other mines using coal mining systems) development refers to that phase of the mining cycle which advances several entries through the virgin seam, forming pillars by cross- cutting between the parallel entries. Because in the past, coal seams (as well as seams of potash, trona, oil shales, gilsonite, salt, and some uranium) have been much more uniform in their thickness, continuity, and quality, and because they often cover large areas, it has been possible to develop the room-and-pillar mine completely from a preplanned, systematic approach with a minimum of surface drilling information. As the better coal seams of the midwest and east are being depleted (or eliminated because of high sulfur), seams of poor quality and continuity will have to be mined. Also, seams that are not nearly so well known at greater depth will have to be taken as well as some of the steeply pitching and folded seams of the west. The American coal miner is only now feeling the need to do a much more complete job of prospecting the geology of the coal seams than he has ever done before. This is the only way that the risk of unknown rock conditions can be minimized. In many ways, surprises in the rock or coal seams are much more of a disaster to the coal miner developing a room-and- pillar mine than to his metal mining counterpart. Be- cause of the multiple entries, the complex set of the Federal Coal Mine Health and Safety regulations, and the totally dedicated design of coal mining equipment, coal mining systems do not have the flexibility to easily overcome changes in the seams mined or the rocks around them. Thus, if a wide parting of rock shows up unexpectedly in the middle of a coal seam entry being milled away by a continuous miner, it will either have to slowly "chew" through it, convert to a conventional mining system, or stop that particular entry. Likewise, if suddenly the coal disappears completely and in its place are the remains of an old creek bed, the "want" or "wash out" as it's called will usually have to be mined right along with the coal, by the same methods and with the same soft rock equipment, or the entry will have to be abandoned. For reasons such as these, coal seams today should be drilled from the surface just as thoroughly as the ore bodies in metal mines. Having once determined a more precise location of where the coal seams are located and which are suitable for mining, the engineer must still take a systematic approach to planning the mine as completely as possible. The initial series of entries must be planned to be driven either from the side hill portal or from the bottom of the shaft or slope. In either case, they should usually intersect the area close to the midpoint of the mass to be mined.

Jan 1, 1982

By Hans von Michaelis

The revolution in development of new technology and practices in the gold mining and metallurgy industry continues unabated despite the ups and downs in the gold price. Some of the new cutting edge technologies are listed in Table 1 overleaf. There is room to discuss just a few of these here, but many more are identified and described in RANDOL (1992). Cutting edge advancements in gold recuperation, can be sorted into three categories. The first category includes fundamental advances that offer major improvement with significant economic benefits. Second would include evolutionary developments that offer smaller, but nonetheless commercially valuable improvements. Finally there are those "advances" that are interesting but of trivial or question­able economic benefit to industry. It is essential to adopt a "systems approach" philosophy towards developing and applying new technology. Practical innovation often comes about as a result of having to solve a problem. Innovation for innovation sake is an ego trip. Environmental management has become an important part of the system and the environmental implications of new processes and practices in the mine and mill have to be carefully considered for potential benefits and/or liabilities.

Jan 1, 1993

By Cuong V. Trang, Christopher A. Fleming

There has been greatly renewed interest throughout the gold mining industry over the last few years in cyanide recovery from gold and silver plant tailings. This interest has been spmred by two factors. Firstly, the increasing cost of destroying cyanide to levels that meet more and more stringent regulations for tailings impoundment or discharge to the environment. Secondly, many gold ore bodies suffer high cyanide consumption costs as a result of the presence of base metals (principally copper) that react with and consume cyanide during the gold leach. In most cases, the cost of recovering and recycling this cyanide from the tailings is signif­icantly lower than the cost of purchasing new cyanide. When this cost benefit is added to the lower costs of tailings detoxification, a compelling case can frequently be made for cyanide recove1y. A number of processes for recovering cyanide from gold plant barren solutions or pulps have been developed. Most of the processes require that the recoverable cyanide is first converted to the highly toxic hydrocyanic acid gas (HCN) and fears surrounding the handling of this compound have probably presented the great­est impediment to implementation of these processes.

Jan 1, 1998

By Richard Hogg, Heechan Cho

Investigations of long-time grinding of fine quartz (to about 80% passing 0.35 pm) in a 0.6 liter stirred-media mill are described. Breakage rates and primary breakage distributions have been determined based on extensive characterization of the ground products by laser scattering/diffraction and gas adsorption. The results indicate that, while there is qualitative similarity between the breakage parameters for ultrafine and conventional (coarse) grinding, there are important, quantitative differences. In particular, it is found that primary breakage distributions become significantly narrower in the submicron sizes. The trend can be described using double-truncated log-normal distributions in which both a maximum (breaking) size and a grind limit are specified. The breakage distributions become progressively narrower as the size being broken becomes finer. Breakage rates follow a typical, consistent pattern in which the rate decreases with size according to a simple power law. Further decrease in the rates seems to occur after very long grinding times when the entire mill contents become finer than about 1µm. The effect is explained as a result of changes in the rate/size relationship in the submicron range.

Jan 1, 1995

By David M. Mchaina, Steve Hardcastle, Michel Grenier

An overview of the process employed to assess arsenic exposure levels at a gold mine is provided together with the recommended control measures. Arsenic and its compounds are regulated in Ontario as designated substances in all workplaces except mines and concentrators. There is a proposal to remove the exemption for mine and concentrators. If the exemption is removed, the mining industry will be required to adopt the proposed exposure Limit of 0.01 mg/m over 40 hours. There are many mines in Ontario which will be affected by this new regulation. To determine the extent of which workers are exposed to Levels exceeding 0.01 mg/m , an assessment program was initiated at the mine. The main objective of the program was to determine the effect of the proposed regulation on underground and surface operations in term of compliance if it becomes Law. The data obtained from the assessment program shared that only 1ML of the workplaces monitored for arsenic indicated levels above the proposed limit of 0.01 ,/yard all workplace levels were below the present Limit of 0.2 mg/m .

Jan 1, 1992

By Michael Beyer

Following the last Cholera Epidemic in 1872, resulting in approximately 400 deaths, the City Council of Munich decided to re¬place the former water supply system within the city limits by tapping new water supply areas outside of the city. Since 1883 Munich has been obtaining its water from the Mangfall River catchment located some 35 km to the south. Its most distinguishing characte¬ristics are as follows: 1) the water is free-flowing, i.e., a pumping system is not required as the catchment area is 100 m higher than the city; 2) the water does not normally have to be treated, meaning "spring fresh" tap water. On a daily basis, 300,000 m3 of water flow through the more than 100 year old pipes, accounting for 70% of the city's daily need. There was originally no requirement of a water tight system as strategically installed drain pipes prevented the build-up of exter¬nal water pressure on the lining. As the qua¬lity of today's water has become significant¬ly worse, the tunnels are now in dire need of restoration or replacement.

Jan 1, 1995

By Donald E. Ralston, A. T. Yu, Richard P. Killmeyer, Peter Phillips, R. W. Vander Laan, John N. Murphy, John R. Messineo, John Peters

Overview Coal production in the first half of 1982 remained near the high levels begun in mid-1981. Production then fell sharply during the latter part of the year due to recession-weakened demand. Even so, 1982 coal production was estimated at 756 Mt (833.4 million st), a record high that exceeded 1980's previous production record of 752.7 Mt (829.7 million st). Though 1982 coal production was substantially below industry expectations, the attained production represented a modest achievement in view of the recession's severity. In 1982, the gross national product declined 1.8%, its worst performance in 36 years. The recession, along with mild weather, improved energy efficiency, and conservation efforts caused the nation's energy use to drop 4.1%. With the iron and steel, construction, and auto industries experiencing production declines, industrial energy use fell 10.8%. The extent to which the nation's economic slump affected coal markets in 1982 varied: • total domestic coal use declined 3.4%; • exports remained strong for most of the year; • electric utility coal use declined for the first time in 25 years; • coal use at coke plants declined by one-third; and • coal use in other industrial sectors stayed surprisingly near the 1981 level. Coal Use Domestic coal use totaled 641.8 Mt (707.5 million st) in 1982,22 .9 Mt (25.2 million st) below the 1981 level. Nearly all the decline occurred at coke plants where use dropped to 37.1 Mt (40.9 million st) in 1982 from 55.3 Mt (61 million st) in 1981. The decline in all other industrial and electric utility coal markets was only 5.3 Mt (5.8 million st). Residential and commercial coal use increased 635 kt (700,000 st) to 7.3 Mt (8.1 million st) from 6.7 Mt (7.4 million st). Power generation decreased 2.3% in 1982, the first year since 1945 that output failed to increase. The decline was due to a drop in industrial demand. Electricity sales to residential, commercial, and other nonindustrial users increased slightly. But coal's competitive position stayed strong. Power generation from oil and natural gas fell 28.9% and 11.7%, respectively. Power generation from coal declined only 0.9%. Among the primary energy sources, coal fueled 53.2% of US electric power generated in 1982, compared with 52.4% in 1981. In 1982, US steel production declined to 66.1 Mt (72.9 million st), the lowest level in 50 years and down from 109.6 Mt (120.8 million st) in 1981. The reduced steel demand forced 13 coke plants to shut down. Coal Exports Coal exports in 1982 totaled 96.4 Mt (106.3 million st), 5.7 Mt (6.3 million st) less than in 1981. Despite the worldwide recession and above normal coal stockpiles in many countries, exports were higher than many expected. This showed the relatively strong US position in international coal trade. The US continued to export near-record coal tonnages despite increasingly competitive influences. These included an improvement in Australia's labor difficulties, the return of Polish coal to Western European markets, and lower oil prices. In 1982, US port facilities were improved and expanded, and more efficient methods for scheduling foreign vessels were implemented. As a result, high volume coal shipments to US ports were routinely loaded and dispatched unhampered by bottlenecks that plagued East Coast ports in 1981. Appalachian coalfield production declined 1.4% from 1981 output and 3.9% from 1980 output. The interior region of the US showed an increase of 7.8% in production. This was primarily because of a

Jan 5, 1983

By V. Duddempudi, B. Goertz, J. Brune, G. Bogin, F. S. Barreto

"INTRODUCTION In designing a new pneumatic Dust Sampling Device (DSD) for coal mines, it was essential to analyze the air and particle flow inside the device in detail using Computational Fluid Dynamics (CFD) modeling. Several CFD models were developed to simulate the air and dust flow and sample collecting process of the DSD. These CFD models were developed to assist in the design of the DSD instrument prototypes for laboratory testing. Nozzle and injection parameters such as geometry, air velocity and pressure, were varied across a wide range to obtain the optimal settings to accurately simulate the fluid dynamics of the multi-phase flow within the DSD. Accordingly, these parameters were used as a guide for the design of the DSD and to verify the dust scouring dynamics, which is designed to represent the dust entrainment during an actual methane or coal dust explosion. BACKGROUND The 2010 explosion at the Upper Big Branch mine has demonstrated the destructive violence of a coal dust explosion. A major contributing factor for this disaster was that the mine operators did not have a reliable, direct-reading method to collect mine dust and determine inert content and combustibility. This led to the development of a new prototype handheld, pneumatic mine dust sampling device (DSD), which blows a puff of air and entrains the mine dust by mimicking the entrainment process during a mine explosion. A computational Fluid Dynamics (CFD) model is used to analyze the air and dust flow inside the DSD. The objective of the CFD modeling effort is to find the optimum design of the DSD prototype, nozzle orientation, air pressure and pulse length by analyzing and varying these parameters so that the scouring action collects a valid, representative and repeatable mine dust sample. CFD MODEL DESIGN Figure 1 shows a wireframe image of the DSD which is utilized in the setup of the CFD model. The DSD has a triangular cross section and is 10 cm wide. Two nozzles with cross-sectional dimension of 2.8 cm by 0.25 cm act as inlets at the narrow end of the triangular cross section. The CFD model includes a reference plane 6 cm away from the nozzle to measure the quantity of dust collected. The geometry shown in Figure 1 was created for the model and it matches with the design of the actual device shown in the figure 2. Symmetry, along the plane X-Y through the center of the device, is used to reduce the number of computational cells in the CFD model. Figure 2 shows the prototype device used for experimental testing. CFD MODEL SETUP Figure 3 shows a hexahedral mesh with a cell size of 0.8 mm and the total number of cells is around 650,000. The ANSYS Fluent® pressure based solver with a transient case was used with a total duration of 40 ms. The 40 ms simulation time is based on experimental measurements to capture the injection of air and initial scouring of dust."

Jan 1, 2016

By G. Swartz, R. J. Brison, R. A. Wyman, J. P. Vandenhoeck, S. E. Khalafalla

Magnetic fluids are commonly composed of ultrafine submicron particles of magnetite (Fe3O4) dispersed in either a kerosene or a water carrier medium with oleic acid as a protective colloid. The unique property of these fluids is that when the magnetic particles are attracted to a magnet the carrier medium moves along with the particles so that the liquid also appears magnetic. The availability of a fluid whose gross behavior changes sharply in a magnetic field without affecting its rheologic characteristics is becoming critical for many technologic applications. About two gener¬ations ago suspensions of relatively large, micron-sized ferromagnetic particles in oil proved useful in clutches, brakes, and dashpots. These were called magnetic clutch materials, and their viscosities were highly dependent upon the applied magnetic field, in contrast to true mag¬netic fluids which retain their fluidic characteristics under all applied fields and field gradients. While the term "ferrofluid" was used by Rosensweig and Kaiser&apos; to designate a magnetic colloid composed of a dispersed magnetic ferrous material, the more general term, "mag¬netic fluid," is preferred. This is because these fluids may contain ferro- or ferrimagnetic substances, such as cobalt, nickel, gadolinium, dysprosium, or magnetic ferrites in carrier liquids, such as hydrocar¬bons (kerosene), silicones, water, fluorocarbons, etc. Preparation of Magnetic Fluids Magnetic fluids were first prepared by Papell and Faber, at the NASA Lewis Research Center, Cleveland, Ohio, by tumbling ferrite materials for several weeks in a carrier medium (such as kerosene) and a dispersing agent (such as oleic acid) with steel balls. Rosensweig et al.1 compared the stability of their ferrofluids obtained from both metallic iron and the magnetic oxides of iron, Fe3O4 and yFe2O3. They found that, although the saturation magnetization of iron is 3.5 times greater than that of magnetite, its colloidal solutions deterio¬rated much more rapidly. The iron particles were undoubtedly rapidly oxidized to a nonmagnetic state due to the enormous surface area of these colloidal particles. Because the properties of these fluids are highly dependent on particle size and may acquire opposite characteristics by small incre¬ments in that size, more controllable methods of preparation have been developed recently by Khalafalla and Reimers.6 In one method metastabilized pyrophoric wiistite is ground to colloidal size in a kerosene oleic acid mixture, and then it is disproportionated to colloi¬dal magnetite and iron at temperatures just below the eutectoidal temperature of wüstite stability (570°C); thus, t < 570°C 4 FeO t > 570°C Fe + Fe30, (1) Because of its antiferromagnetic characteristics, the precursor wüstite is much easier to grind than magnetite. Another method3 avoids grinding entirely and utilizes a peptiza¬tion technique from ferrous materials in the molecular state of aggrega¬tion. This latter procedure has resulted in preparation of strong fluids at considerable savings in cost.

Jan 1, 1985

By R. Todd Swinderman

Variations in designs between belt cleaner systems are so wide that it is impractical to establish a dimensional stan- dard. The number of variables that affect the efficiency of belt cleaners is too great to assume a required number or style of cleaners for broad classifications of bulk solids or typical applications. The amount of carryback remaining on the belt is more dependent upon the characteristics of the bulk solid and the physical parameters of the conveyor system than it is on tonnage of material conveyed. Therefore, a performance-based standard is proposed. Three levels of cleaning performance are proposed: • Level I cleaning is general specified when concerns about carryback are not critical. Cleaning systems normally associated with achieving a Level I performance are single or double cleaner systems with one-piece blades undergoing poor to average maintenance. Frequent cleaning of the carryback that falls from the return run will likely be required. • Level II cleaning is generally specified when carry- back is of concern but does not create a safety or environmental problem. Cleaning systems normally associated with Level I1 performance are multiple cleaner systems with segmented blades undergoing the manufacturer&apos;s specified maintenance. Regular but infrequent cleaning of the carryback that falls from the return run will likely be required. • Level III cleaning is generally specified when con- cerns about carryback are critical. Concerns range from safety to environmental to product contamination. Cleaning systems normally associated with achieving a Level 111 performance are multiple cleaner systems in conjunction with at least one low- volume water spray. Scheduled inspection and the manufacturer&apos;s specified maintenance would have to be performed to maintain a high level of cleaning performance. Difficult-to-clean bulk materials may require the use of a washbox system with multiple cleaners using a combination of low-volume eater sprays to lubricate the cleaners and high-volume sprays to keep the washbox and discharge piping freely flowing. Further addition of a water and sludge recycling system reduces the amount of water that ends up in the product to a negligible amount. Very infrequent cleaning of the carryback that falls from the return run will be required. PURPOSE The purpose of this proposal is to propose a standard method for specifying belt cleaner systems based on user expectations and equipment performance over time. DEFINITION In bulk solids handling by conveyor belt, carryback is the material that adheres to the belt after the belt discharges its cargo. PROPOSED STANDARD Required Basic Good Practices There are a number of basic design and operating principles that are good practice for the selection, installation, and maintenance of belt cleaning systems on conveyors in order to achieve "standard belt cleaning performance over time. 1. The Belt Cleaning System shall be designed to meet the performance requirements based on the worst operating conditions and worst bulk solids proper- ties that are expected. 2. Each conveyor discharge point shall be designed to readily accept the manufacturer&apos;s recommended minimum number of belt cleaners. In addition, the discharge chute shall be designed to accept, with minor modifications, at least one additional cleaner if it is required.

Jan 1, 2004

By Robert B. Fulton

The objective of this chapter is to discuss the interrelationship between industrial minerals and chemical manufacturing. It is intended to supplement rather than duplicate the commodity chapters. Particular emphasis is given to the pertinent chemical element and to market factors. Condensing this broad subject into a few pages of this handbook permits treating only the most important elements derived from industrial minerals. Hydrocarbons, which quantitatively dominate as raw materials for the chemical industry, are omitted, as are the metallic elements and the minerals covered in other "use" chapters such as phosphorous, potassium, and nitrogen for fertilizers, and titanium dioxide for pigments. The remaining six elements of major importance are: boron, bromine, chlorine, fluorine, sodium, and sulfur. These elements are treated individually under separate headings. [Table 1] affords an overview of the main industrial minerals, the chemical products derived from them, and end uses of the products. Salt brines have particular importance as raw material sources for the chemical industry. Table 2 is a chart of the chemical compounds derived from four types of brines: (1) Owens Lake-type brines, which are sources of boron and sodium compounds; (2) Midland-type brines, from which bromine, iodine, and chlorides of calcium, magnesium, potassium, and sodium are derived; (3) Searles Lake-type brines, yielding boron, bromine, lithium, magnesium, potassium, and sodium compounds; and (4) Silver Peak- type brines, produced mainly for lithium. MARKET ATTRIBUTES Some of the important market traits common to industrial minerals used by the chemical industry are: 1. They are international commodities, such as fluorspar and sulfur, which largely move to foreign consumers. 2. Grade, and freedom from deleterious elements are important factors affecting their usability in chemical processes. An example is salt (NaCl) used in electrolysis where ultrapure evaporated salt is required to meet rigid specifications. 3. Purified products take on the characteristics of specialty items and command a distinctly higher price than the basic commodity from which they are derived. 4. In practically all cases, chemical users require some sort of cleaning or beneficiation of the naturally-occurring mineral to bring it to specification, and individual specifications may vary from user to user for essentially the same use. 5. In some instances it is necessary to strike a balance between what the vendor can supply and what the buyer requires, with the result that specifications have to be eased to afford the needed materials in marginal cases. 6. Because they tend to be bulk commodities, low cost for handling and transportation are important and such costs may limit the area from which a chemical user can draw his supply. 7. Shipments are usually in bulk and frequently in multiple-car, full-trainload or full-shipload lots to reduce transport costs, which in turn may require large terminal investment facilities. 8. Purchases are generally by contract of one year or longer term, with spot buying playing only a minor role. 9. Contract prices are usually fixed in short term commitments, but may vary according to assay, with premiums and penalties for content above or below the norm; however, general practice is for specifications to be fixed in the contract with minimums being set for the desired material and maximums for undesired elements. In longer term contracts, prices are often escalated on labor, fuel, and other vendor processing costs. 10. Suppliers of individual commodities to the chemical industry tend to be limited in number and are generally medium- to large-size producers that supply a few major consumers. 11. The bulk of the mineral volume is for basic chemical uses, sulfur suppliers to sulfuric acid producers and fluorspar for hydrofluoric acid producers being typical examples. These basic chemical products then are used for the production of other products. 12. Shortage of a supply of adequate quality leads consumers to seek substitutes. In the case of fluorspar, much work is being done on recovery of fluorine from phosphate rock. Success in the form of fluorosilicic acid and/or hydrofluoric acid production could, in time, affect the hydrofluoric acid chemical industry. 13. Markets tend to be characterized by cycles of shortage followed by oversupply, with attendant wide price fluctuations. 14. Baniers to trade can have an adverse effect on the necessary movement of industrial minerals used by the chemical industry in international trade. Antidumping laws, quotas, and tariffs can disrupt or dislocate normal markets. 15. Chemical industry consumers may back-integrate for security of supply or for favorable economics, sometimes by joint ownership and often with experienced mining partners.

Jan 1, 1994

By Kumara Rachamalla

North American mining companies are lagging behind their global competitors in participating in the outstanding opportunities in India. The Indian government has liberalized foreign equity participation in the mining sector by up to 50% and, in some cases, even higher. Delegates from Europe, North America and South Africa learned this at an information seminar held in London, England, Attendees were welcomed by L.M. Singhvi, the UK&apos;s high commissioner for India. He introduced a government of India delegation headed by B.P. Baishya, minister of steel and mines. Singhvi is an eminent jurist and leading constitutional expert. He reiterated the soundness of India&apos;s legal system. He also outlined the recent Investment Protection Treaty between India and the United Kingdom. Baishya emphasized thee geological diversity and strengths of India&apos;s domestic market with its population of more than 920 million people the second largest in the world after China and its reservoir of skilled labor. He also outlined the potential of India&apos;s untapped natural resources. The private sector is the backbone of the Indian economy. It accounts for 75% of gross domestic product (GDP). The current minimum program of the new United Front government envisions 12% growth in the industrial sector, 7% in GDP and direct foreign investment of US$10 billion a year. "Mining is an area that can attract a sizable part of this investment," Baishya said. "Projected growth of the Indian economy will require increasingly large quantities of basic raw materials, such as coal and base- and precious-metals to meet the needs of domestic and export markets." Administration of India&apos;s mining sector is divided into the Ministry or Mines for regulating and developing the country&apos;s mineral resources, five public sector Mining Enterprises, the Geological-Survey of India (GSI), the Indian Bureau of Mines (IBM)and 25 states and seven Union Territories. The GSI is the second oldest (founded in 1851) and the third largest organization of its kind in the world, Baishya said. It has geologically mapped more than 90% of India&apos;s 3.2 million kmz (1.2 million sq miles) at a scale of 1:50,000. Several promising mineral projects have emerged from regional exploration programs conducted by GSI and the Mines and Geology State Governments. IBM recently completed a national mineral inventory. It covers 13,000 deposits/prospects of 61 nonferrous minerals. GSI also compiled a similar inventory on 61 coal fields. India is attractive to exploration companies for several reasons. These include favorable geology, accessible locations and a large mineral database. India also has many experienced geoscientists with well-equipped and efficient laboratories, Baishya said. Secretary to the Ministry of Mines A.C. Sen emphasized the largely untapped-geological and mining potential of India. He also discussed the new vistas that have opened up opportunities for exploration and mining. India has large quantities of mineral reserves, Sen said. Its vast Precambrian Shield - like those in Canada and Australia - is endowed with gold, platinum group and base metals, as well as coal and industrial minerals. Annual mineral production is valued at more than US$7 billion. Sen pointed out that India is the largest single consumer of gold. And domestic gold prices command at least a 20% premium above international prices. Recent diamond, gold and base-metal discoveries and prospects uncovered by GSI have generated investment interest from abroad, he added Delegates heard that the Indian Constitution gives the central government the job of framing legislation and the regulation and development of minerals. This ensures that mineral laws are uniform throughout the country. However, the right to grant mineral concessions, such as prospecting licenses and mining leases, rests with the minerals&apos; owner. In India&apos;s case, that is the state government. The Indian government has formulated several guidelines that regulate the granting of prospecting licenses for large areas. ? The central government will consider the requests of state governments for the granting of prospecting licenses for areas exceeding 25 kmz (9.6 sq miles). But the license must include a provision to conduct aerial prospecting of the area. ? Any prospecting licensing area should not exceed 5,000 kmz (1,930 sq miles). for a single license. And the total area held by one company should not exceed 10,000 km2 (3,861 sq miles) for the whole country. ? The grant of larger areas will be linked to a mini- mum expenditure commitment on physical targets. State governments will monitor these expenditures. ? The granting of large areas for prospecting will be linked to a schedule of relinquishment.

Jan 1, 1997

By Christian F. III Baiz

Introduction A new mining agenda is before us. Born of government policies and world economies, the years ahead will show reduced growth. Metals, mining, and most other natural resource industries are inflation dependant and capital intensive. For these, a long period of contraction of outmoded and costly capacity will evolve. In some cases, this will be supplanted by new, lower cost capacity. But this will occur only if the cost of production - including cash operating and debt service costs - comes in at or below current market conditions. The industrial outlook for metals mining can be characterized as bearish. A US bank economist said mining companies planning their five-year forecasts should take current market conditions and straight-line them to the end of the decade. With low growth and low inflation, the real price of metals will remain flat or decline slightly. As a result, capital funding will be problematic. The low-cost producer will succeed. That means only the producer with low cash costs and low principal and interest costs per unit of production, will succeed. Gaining a perspective One must look back 30 years to see the evolution of the capital markets, for metal mine financing. This period can be divided into two economic periods. The 1950s were a time of stable economics. Mining companies earned and reported good profits. They had good corporate creditworthiness. In essence, mining companies of the 1950s were highly self-reliant. When equity infusions were needed, they were easily obtained. Financial management kept long-term debt low. Fixed rate, long-term financing was readily available in the long-term bond markets. The commercial banks of the 1950s were rarely used by the mining industry. When necessary, mining companies went to the banks for short-term financing - the kind that was needed for working capital requirements. Changing rhythms In the old rhythm there was an orderly market. Even into the mid-1960s, 75% of world annual copper production was controlled by eight companies: two in the UK, one in Belgium, and five in the US. During times of poor market demand, these producers would control supplies to the market. They took their losses out of retained earnings. Capital was easily restored during the ensuing good times. The new rhythm called for copper to be an economic means to a political end. Third World copper producers brushed aside the market fundamentals of commodity economics. Yet, the political solutions of these countries - their lack of response to the market - have seldom achieved their original objectives. Each commodity has its own old and new rhythm. Aluminum may have a similar rhythm, coming 10 to 20 years later than copper. By the late 1960s, changes were occurring. Inflation was on the rise. Ore reserve quality was falling. As a result, capital expenditures were necessary to maintain existing output. These costs created an increase in corporate leverage, thus adding to inflation and rising interest rates. Indicators A comparison of the gross national product (GNP) deflator index, consumer price index, and the metal mining deflator index is instructive. (Fig. 1 and Table 1). With 1972 equal to 1, note that the metal mining deflator reached its lowest point in 1967. From that point, the metal mining deflator has accelerated severely for 16 years. Only two minor downturns occurred during the business recessions of the mid-1970s and the early 1980s. In essence, Fig. 1 shows that while GNP has grown modestly, a miner&apos;s dollar in 1972 would require $3.48 in 1980. This is an almost 17% compounded growth rate over that eight-year period. Beginning in the late 1960s, for the first time in mine financing, the risk of success shifted from the corporate balance sheet to third parties. Limited-resource financings were taken up by banking syndicates that accepted certain of these risks. The lender needed to be well acquainted with the types of risks to be evaluated. These include resource quality and quantity, construction and completion, capital and operations costs, market risks, force majeure, and political and exchange rate risks. Project financings became the basis whereby mining companies were able to maintain their borrowing capacities. In essence, the lender was willing to share some of the project risk while only receiving lenders&apos; returns on these investments. Over the last two decades, mineral project financings have become highly complex transactions involving multicurrency, multi-

Jan 8, 1985