Search Documents

By Henry B. Estabrooks

As was the case with many other mining companies, the management of Tennessee Copper Company' viewed with some interest reports in various trade and technical journals of the successful use of ammonium nitrate-fuel oil mixtures as an explosive in coal stripping., construction, open pit mining and finally in underground salt mines. The apparently simple transition from the "interested" stage to a point where in excess of 80% of the ex¬plosives used is ammonium nitrate may be of interest. The Tennessee Copper Company operates five mines in the "Copper Basin" of Polk County which lies on the extreme southeast corner of Tennessee. The ore is a massive sulfide principally pyrrhotite and pyrite with some tough lime silicates as gangue while the walls are greywacke interbedded with schist. Average total production is 28,000 tons per 5-day week and an average of 422 feet of development per week. Development work consists of 8'x 8?, 6?x 7?, 5'x 7? and 4'x 6? drifts driven with drifter drills using 1-5/8" carbide detachable bits and 5'x 5' raises driven with stopers using 1-5/8" bits.

Jan 1, 1962

By Dean Newman, Michael Behrens, Mark Trim, Justin Arifin

Road tunnels in recent infrastructure projects in Sydney, Australia, are designed to have a fire resistance level of either a 4-hour cellulosic fire or a 2-hour hydrocarbon fire. Where permanent ground support for tunnels consists of systematic rock bolts and relatively thin layer of shotcrete, it is important to ensure that during and after the fire event the ground support is designed/predicted not to pose risks to the tunnel occupant. The global behavior of the ground support can be predicted using finite element analysis, and its resistance is derived with consideration of the material strength degradation due to the elevated temperature.

Dec 1, 2022

By W. M. Hart

Business Process Improvement (“BPI”) Change to Survive “It is not the strongest of species that survive, nor the most intelligent, but the one most responsive to change.” [Charles Darwin] “If you want to understand something, try to change it.” [Kurt Lewin, social scientist] Many companies have tried one or more process management initiatives. Each effort may help develop a culture that is more receptive to change. Executive Management needs to be unwavering in support of change with systems and structures, staffing, development of people, measures, with incentives and rewards. General Electric developed principles for quality change management that are necessary for effective, continuing Business Process Improvement (BPI). Change Acceleration Process (“CAP”) One of the tools General Electric developed has been used successfully by companies around the world in a wide variety of industries. This tool, named Change Acceleration Process (“CAP”), is designed to improve acceptance of change. Acceptance is the method by which the creative energies of the workforce can be fully tapped. Over time, every employee receives CAP training at least once, and in many instances three (3) or four (4) times, and will work on one or more High Performance Teams. Thus, BPI can achieve and maintain its goals. The CAP tool focuses on: • Leading Change • Creating a Shared Need • Shaping a Vision • Mobilizing Communication • Making Change Last • Monitoring Progress • Changing Systems and Structures

Jan 1, 2006

By B. M. Davis

The uncertainty associated with a reserve estimate has generally been expressed as a subjective ranking rather than a quantitative expression of either reliability or uncertainty. These rankings of estimate reliability have taken a very nonquantitative bent as well. For example, the U.S. Securities and Exchange Commission definition of proven reserves is given as: Reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings, or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well-defined that size, shape, depth and mineral content of reserves are well-established. (U.S. SEC, Form S-18, Item 17A)

Jan 1, 1992

By Pierre Dosmond

In ore mining technology, the loading and hauling operations are undoubtedly the area where the most spectacular progress has been made during the last twenty years. I shall draw some examples from the Eastern France iron ore mines which I how well and whose production of 62 million tons for 1962 and 1963 constitute a worthwhile experience worldwide. The iron ore deposits of Lorraine are of sedimentary origin. They contain many mineralized horizons with workable seams situated from 330 to 830 ft. in depth. The dip of these seams is generally less than six percent. Their thickness varies from 6 to 23 ft. All seams are not workable throughout the whole area of occurrence, but in some mines there are five mineable seams in the same vertical section, with from 5 to 20 ft. of barren ground intervening between them. The iron content of the mineral varies from 28 to 36 percent. Specific gravity of the ore is 156 lb. per cu. ft. m place and 100 lb. per cu. ft. blasted. Reserves of iron ore in the Lorraine region are estimated at six billion tons with an iron content of more than 28 percent. These mines operate by means of rooms and pillars process, with pillar robbing; the final recovery is very good and averages 90 percent. Some years back, competition from richer, imported ores incited these mines to make constant efforts to increase their productivity and reduce mining costs, thus placing them in a leading position in mining technology, as evidenced by the dramatic evolution of their output per manshift (Figure No. 1).

Jan 1, 1970

By R. L. Bullock

The New Lead Belt of Missouri, situated in the heart of the Clark National Forest, stands as a dynamic example of how mining activities can successfully coexist in a restricted wilderness area. After 16 years of intensive drilling activity, mine development and surface plant construction, many would agree that the mine-plant design philosophy of St. Joe has minimized the imbalancing effects to the ecology and the wilderness appearance of the Ozark area. In a recent dedication speech of St. Joe's newest operation, it was stated: 1 "this Brushy Creek Mine, as well as nearly all of the mines in this district, lies within the boundaries of the Clark National Forest. Here the Forest Service has an outstanding and realistic program for multi-use of Federal lands. Mining, lumbering, recreation and conservation coexist in, what I consider, a delightful wilderness environment. I believe that this same type of usage could be permitted on all government land without seriously detracting from its natural beauty." Each and every activity in the process of discovery, exploration, development and finally operating a mine and process mill could have drastically degraded some phase of nature's environment were it not for the well developed and executed plans of the mining people involved. This is not to say that everything has been kept in perfect balance; but most certainly the industrial impact on what was once a wilderness area has been held to a minimum. What follows is the story of how each phase of this gigantic development was handed by industry people. Through their interaction and cooperation with government agencies, educators and researchers, allowed not only the ecology of the area to be protected, but the aesthetic beauty of the Ozarks to remain intact.

Jan 1, 1973

By David Runnels

In September 1970, the Quebec Cartier Mining Company, started development of the Mount; Fright iron ore mine. The estimated ore reserve is in excess of 1,000,000,000 long tons with an average grade of 31.5% Fe. The run of mine ore is crushed, ground and concentrated to a product having 66% Fe and 5% silica at an annual concentrate production rate of 18.4 million long tons. The daily production rate of over 50,000 long tons of concentrate necessitates a daily mine output of approximately 250,000 long tons of material of which 50% is waste. The mine is located in the Province of Quebec, close to the Labrador border approximately 600 miles north-east of Montreal. The development of the mine necessitated the construction of an all electric one thousand housing unit townsite along with associated services such as a shopping center, swimming pool, arena, school, etc... A one-hundred mile long, 315 K.V. Dower line was built between the mine site and the Hydro-Quebec 735 K.V. existing power line between Churchill Falls and the Montreal area. The construction near the mine of a beneficiation plant was necessary to upgrade the 31.5% iron ore to a marketable product of 66% iron.

Jan 1, 1977

By Ali Nazem, Rennie Kaunda, Zoheir Khademian, Fei Wang, Raymond Henn, Alex Peretiatkol

"The field demonstration portion of the Underground Grouting and Ground Improvement (UG&GI) short course offered by the Colorado School of Mines was held on May 18, 2016 at Baski Inc.’s Yard in Denver, CO.Numerous full field scale demonstrations of grouting methods and equipment were conducted under various field conditions. As part of these field tests, permeation grouting testing and demonstrations were also conducted. Various cement grout mixes were injected into 1.5-m (60-in.) tall transparent sand columns under controlled conditions (Fig. 1). The objective of the sand column permeation grouting demonstrations in the study was to show students the effects of ordinary Portland cement versus ultrafine cement on the engineering properties of the grout, and the permeation height through various types of soil stratigraphic layers in the sand columns. Similar previous demonstrations have had a specific focus on various brands of Type I-II Portland cements and ultrafine cements with a range of water cement ratios and injection pressures. More detailed information about these previous studies can be found in published proceedings (e.g. Henn et al., 2009 -2011).Equipment and material usedThe five clear plastic sand columns were 191 mm (7.5 in.) inside diameter and 1,524 mm (60 in.) tall. Each sand column had a 19 mm (0.75 in.) diameter hole drilled at the base (bottom) of the blind flange for injection of the grout. A perforated plate and/or screen at the base of the sand columns helped to prevent sand from plugging injection port. A ChemGrout grout plant was used for the demonstration consisting of 0.36 m3 (97 gal) high shear (colloidal) tank mixer, a 0.36 m3 (97 gal) agitator tank and a progressive helical cavity pump with maximum output capacity of 77 L/min (20 gpm) at a maximum discharge pressure of 265 psi (18 bar) (Fig. 2). A simple grout header arrangement consisting of control valves, pressure gauges, flow meter, grout delivery and return line, and a short injection line was also custom built. Also used were infra-red thermometers to measure the temperatures of the grout mix batches, CRD and marsh funnels to measure viscosity, baroid mud balance to measure specific gravity, and a digital scale to measure weights. The grout materials used were Holkim Portand cement (Type I-II), Nippon Steel Sumikin superfine cement and U.S. grout ultrafine cement."

Mar 1, 2017

By Ditend Tesh, Mallikarjun Pillalamarry, Nikowa Namate, Harmony K. Musiyarira

Many reports have been written about the issues surrounding small scale miners’ challenges in Namibia; yet little has been done to address these challenges. There has been a fragmented approach to address these challenges. Various government arms and donor organizations have utilized piece meal methods in the past in trying to make improvements on the productivities across the sector, but with no meaningful success. This has led to the design and implementation of inappropriate technologies and support services for the sector. The structures of many of the semi-precious stones mining businesses are informal, with very little royalties received by the government. Miners often work informally or illegally and they fear government interference and they distrust outsiders, resulting in them withholding production information. The presence of small scale miners is quite often associated with major challenges, including poor safety and environmental management standards, the spread of communicable diseases and poor working conditions. The majority of the miners employ uncontrolled extraction techniques which damage the crystals and mineral specimens, resulting in intermediate and final products of low quality along with high wastage at the extraction stage. The vision of the Namibian government is to expand the range and value of semi-precious stones and jewelry products processed within Namibia, while curbing illicit flows of raw stones. This will simultaneously secure maximum benefit for the country. This study investigated the interventions aimed at making the small scale mining sector in Namibia sustainable. A baseline study was conducted to analyze the current situation and characterize the industry, including a SWOT analysis. Information was collected through questionnaires, interviews, consultative meetings, field visits and workshops in order to profile the sector. The baseline study results were used in developing interventions for improving artisanal and small scale mining operations. The main challenges for the Namibian semi-precious sector were identified as: factual information about raw material resources and its beneficiation are insufficient or not available, lack of skills, lack of education and access to finances, rudimentary exploration and mining practices, trading and logistics that are not functioning effectively and inadequate sector governance. One key finding of this study was that Namibia is not benefiting through value addition due partly to illicit flows of the uncut stones and to the fact that lapidary is not much pronounced to a greater extent. The following strategic interventions were identified as key in ensuring the sustainability of the small mining sector in Namibia: conducting geological assessment to identify new deposits and quantify the existing ones, improving exploration and mining practices, investing in education and training, creating an enabling environment and improving the sector governance and strengthening the sector organization and supporting the infrastructure.

Jan 1, 2017

By M. H. Morcali

Pistachio nut shells, an agricultural waste biomass, and Lewatit TP 214, a commercial sorbent, were investigated as adsorbents for the adsorption of platinum from dilute hexachloroplatinic acid solutions. Before the pistachio nut shells were carbonized, adsorption percentage was 65%, whereas Lewatit TP 214 ensured almost 100% adsorption. However, after the pistachio nut shell was carbonized at 1,000° C under an argon atmosphere, the platinum adsorption (%) increased two-fold. The effects of such parameters as sorbent dosage, contact time, temperature and solution pH on adsorption were studied in detail in batch mode. The adsorption equilibrium data were best fitted with the Langmuir isotherm model. The maximum adsorption capacities, Qmax, at 25° C were found to be 38.31 and 33.22 mg/g for the carbonized pistachio nut shell and Lewatit TP 214, respectively. The adsorption of platinum on both sorbents was found to be described by the pseudo-second-order kinetic model. The results indicated that the activated carbon prepared from pistachio nut shells can be effectively used for the removal of platinum from acidic solutions.

By M. Measures, W. A. Napier, C. Pomroy, J. M. Jardine

INTRODUCTION In most uranium mines the concentration of uranium in the ore is low enough that inhalation of dust does not present a radiological problem. Conversely in the mills there is a potential inhalation hazard from inhaled uranium in concentrated form, namely "yellowcake" and other compounds intermediate between the ore and the final product of the mill. It was generally assumed that the solubility of yellowcake placed it in the category of Class D materials. This plus the fact that the uranium is non-enriched led health physicists to assume that the potential health hazards were a result of the uranium's chemical properties rather than its radiological properties. Bioassay programs have thus been limited to routine urine sampling at a weekly or monthly frequency. In most cases when a high reading was obtained, subsequent sampling within one or two days showed a rapid return to low levels, therefore tending to confirm the class D nature of the material. Two developments over the last few years have however suggested that modifications to this simple bioassay program may be necessary and practical. Firstly, a number of studies on the solubility of uranium mill products, from ore to yellow cake, in simulated lung fluid (Eidson A.F., Mewhinney J.A., 1980) have shown that some of the material is not class D, but class W or even Y. This raised the possibility that, while the urine levels rapidly decreased, indicating rapid excretion of the class D component, the W and Y components remained in the lung. Thus an unsuspected lung burden could have been accumulated. The second development, the ready availability of [in vivo] counting facilities with which to make direct measurements of uranium lung burdens, offered a means of confirming the hypothesis of unsuspected lung burdens. A study was therefore initiated to correlate lung burdens with urinary excretion. METHOD A total of 79 subjects from 3 uranium mills participated in the study. They were brought to the Ottawa laboratories of the Radiation Protection Bureau in groups of 4 or 6, over a period of several months. In Ottawa, [in vivo] thorax measurements were performed, and a urine sample collected. Each subject also brought with him a urine sample that had been collected the previous day. All samples were split, for analysis by both R.P.B. and the mill laboratory. [Concentrations of Uranium Dust] Results obtained by mills A, B and C for concentrations of uranium in air at various locations are given in table 1. Samples taken at mill B were obtained using continuous sampling with a midget impinger over a six hour period. Samples taken at mills A and C were 5-minute gravimetric samples. [Subject Selection] The subjects were selected to represent a wide range of work history in terms of both length of employment and type and location of job, as shown in table 2.

Jan 1, 1981

By A. D. S. Gillies, A. Haghighat

"A study has been undertaken at the Missouri University of Science and Technology (MS&T) limestone Experimental Mine to determine new fans set up and wiring options.to install additional mine ventilation capacity. Selection for main fans has been undertaken according to the mine’s required performance specifications and fan characteristics. Available fans for ventilating the mine are Joy and Alphair axial fans each of 24 kW each and two Spendrup booster fans of 12 kW each. The installation of main mine fans on the surface and underground entails numerous considerations. Design of a ventilation network for the Experimental Mine incorporating surface and booster fans has been accomplished using Ventsim Visual program software. The ventilation network has been separated into two segregated parts. A main surface fan and a booster fan have been used in each segregated part of the network. The mine has had a vane axial Joy fan in place for many years. The Alphair 4800 VAX 1800 full blade adjustable pitch vane axial fan was selected and installed as the other surface fan and eventual replacement for the Joy fan. Main surface fans have been connected individually to booster fans in series. The Alphair main surface fan has been installed vertically. Four different wiring options and related cost estimations for addition of the new main fans to the ventilation network have been considered. The analysis resulted in an innovative steel frame design used to allow the fans, when necessary, to be moved to the side of the shaft so that blast pressures do not damage the blades. INTRODUCTION Main fans are the heart of a mine’s ventilation network and play a key role in supplying required airflow (Haghighat, 2014). The Missouri S&T Experimental Mine has been developed in uniform limestone with few stratigraphic features. The mine floor is approximately horizontal and water drains well. A study has been carried out on MS&T Experimental Mine. Selection of main fans has been undertaken according to the mine’s required performance specifications and fan characteristics. Ventsim Visual computer simulation has been used to assist in design of the ventilation network. Wiring circuits, fan foundations and flexibility have been considered as the three main parameters for surface fan installation at the Experimental Mine. Two surface and two underground wiring options and three surface set up options and related cost estimates for the new surface fan system were investigated. Frequent use of explosives in the mine occurs throughout each year. Flexibility in changing the position of a surface fan is important. A number of options have been considered for the location of a vertical main fan positioned on the upcasting shaft. The mine is used for a variety of purposes and flexibility has a high priority amongst design considerations."

Jan 1, 2015

By Donald S. Clarke

The Umuna epithermal precious metal deposit has provided the target for a simulated rock geochemistry exploration program, directed at bedrock exposed in the drainage system of eastern Misima Island. A geochemical halo to the deposit is readily recognised in the mafic meta-volcanic country rock. This halo is defined by anomalous results for both major (K, Na, Ca, Mg) and minor (Au, As, Sb, Cu, Pb, Zn, Ba, Rb, Sr, Cs, Bi, Ga, S) element geochemistry, extending further than 1km from the deposit. Such halos are sufficiently extensive to provide adequate exploration targets in the search for epithermal mineralisation, complementing mineralogic and secondary media geochemical investigations.

Jan 1, 1989

By James E. Myers

This study is a survey of the current "state-of-the-art" of commercially-available sonar tools to monitor the true shape of man-made cavities within the Hutchinson Salt of south-central Kansas. The work entailed ferreting out the available information, most of which is proprietary in nature; then examining actual existing conditions and arriving at a reasonable scientific evaluation of the method. Our studies were confined to one LPG field and two brine well operations in south-central Kansas. No field testing of any devices was performed, only questioning user firms, and studying cores, logs, and sonar surveys graciously made available by the companies we have contacted. Since these data are still somewhat proprietary, the company participants have asked that their company names be omitted from this presentation.

Jan 1, 1973

By C. A. Oestreicher

For sulfide minerals, the presence of dissolved oxygen in the water phase is an influencing factor for separation by flotation. Klassen and Mokrousov(I:217l distinguish three stages of oxygen adsorption; namely, reversible adsorption, activated adsorption and, finally, surface oxidation. While contraversial, limited adsorption of oxygen is believed to improve the interfacial reactivity between collector and mineral. Intensive surface oxidation of sulfide minerals usually results in unsatisfactory flotation with collectors of the xanthate type. The influence of dissolved oxygen in the water phase has received consideration for sphalerite, galena, chalcopyrite, arsenopyrite, chalcocite, and covellite(2,3,4,5,6). However, the nature of surface oxidation products of sulfide minerals has received very limited investigation(6,7). Lightly oxidized galena promotes the adsorptive reaction of surfactant (xanthate or dixanthogen). Tolun and Kitchener(8) state that limited interaction occurs between galena and xanthate under relatively reducing conditions. And, that exposure to oxygen raises the electrochemical potential of the galena to that required for reaction with xanthate or dixanthogen. In the latter condition, the galena has an "effective flotation surface". On the other hand, intensive oxidation of galena reduces the chemical reaction with xanthate collectors (9) . Complete flotation with xanthate-type surfactants with increasing oxygen content in the water phase has been determined to have the following sulfide mineral sequence(3): galena, pyrite, sphalerite, chalcopyrite, pyrrhotite and arseno-pyrite. The work of Cusack(4) suggests that some threshold amount of oxygen is necessary for flotation to occur, but heavy oxidation hinders flotation with xanthates. According to Tolun and Kitchener(8) catalytic oxidation of xanthate to dixanthogen occurs. From infrared studies, Poling and Leja(IO,II) found that in the absence of oxygen in solution, xanthate ions do not adsorb either on

Jan 1, 1972

By Furuyama Takashi, Mori Sukeyuki, Hara Tsuyoshi, Fukushima Yujin

In mineral processing practice, flocculation is largely established as an engineering technique of waste water treatment and the study of parameters increasing the settling velocity of particles is still of great importance to improve the process. Further investigations were made using quartz (Q89) and fluorite samples (F91) which included 58.8% and 65.8% of -2.3 µm particles respectively. In all the experiments the flocculation phenomena were observed varying the pH value of the aqueous suspension. In contrast to quartz particles (Q89) which did not flocculate for all pH values, it was, noticed that fluorite particles (F91) flocculated in the alkaline range of pH over 11. With an aqueous suspension containing equal quantities of Q89 and F91, a hetero-flocculation of particles was observed at a range of pH below 10. In this case, the maximum floc size of the hetero-flocculation was 37.0-26.2 µm This size was about three times larger than when quartz (Q84) and fluorite particles (F85) were used with 32.4% and 40.4% of -2.31 µm particles respectively. Besides, in the experiments using Q89 and F91, the maximum size of hetero-flocculated single particles was found to be 6.54 µm instead of 3.27 µm as obtained with Q84 and F85.

Jan 1, 1995

By G. H. Lewis, C. L. Krcil, N. S. Harding, D. E. Havekotte

INTRODUCTION Limestone injection work was completed in a 440-kW (1.5-million Btu per hour) pilot-scale combustor in preparation for a 50,000-kg/h (110,000-lb per hour) industrial steam boiler limestone injection test program. The main objectives were to: (1) identify the important variables that affect sulfur capture, (2) determine the maximum SO2 removal, and (3) determine the effect of limestone addition on furnace operability and heat transfer. A more detailed report is given by Lewis et al. (1985). The test program was divided into two phases. The objectives of Phase I were to determine the important variables that affect SO2 reduction and to investigate the effect of limestone addition on combustor operation and heat transfer surfaces. The objective of Phase II was to determine, using only the important variables identified during Phase I, the conditions that resulted in the greatest sulfur dioxide reduction. Phase I Test program Using one limestone, five variables were identified as having an effect on SO2 reduction. These are noted with their respective ranges: heat release rate [103 to 166 kW/m3 (10,000 to 16,000 Btu per hour-cu ft)], Ca/S molar ratio (0 to 3), flue gas oxygen concentration (3% to 5%), additive particle size [90% -150 µm (-100 mesh) and 90% -45 µm (-325 mesh)], and burner stoichiometry (SR = 0.75 and >1.15). A 2.3% sulfur northern West Virginia coal, pulverized to a nominal grind of 70% -75 µm (-200 mesh), was burned for the tests. The limestone used was obtained from a Maysville, KY, quarry and contained 51.75% (wt) CaO. An 11-run statistically designed program (plus three duplicates) was used to screen the five variables. The effect of limestone injection on the combustor heat transfer surfaces was determined by comparing the heat transfer rates through a slag panel and fouling probes during periods with and without limestone injection. Combustor operation was determined by noting any operating problems that occurred during the tests. Test procedure After furnace wall temperatures had stabilized at operating conditions, heat transfer surfaces (slag panel and fouling probes) and the convection section were blown clean, and a four-hour test was begun. The

Jan 1, 1987

By R. L. Eppley

The Blacklick Creek Watershed Association was awarded a $158,000 Growing Greener grant from the Pennsylvania Department of Environmental Protection in 2002 for the design and construction of a sulfate reducing bioreactor (SRBR) cell to treat acidic discharge from the Judy 14 abandoned underground coal mine near Indiana, PA. The vertical flow SRBR was designed to treat 38 liters per minute of MIW containing elevated concentrations of aluminum and iron. Other treatment systems at this site plugged due to aluminum precipitates; this problem did not occur in the SRBR. The bioreactor has been periodically overloaded with flows up to six times the design rate. To date, the only maintenance performed on the unit has been the addition of hay to the surface of the unit in response to less than expected performance. The periodic hay additions appear to have restored the SRBR to nearly post-construction levels. Since construction, the SRBR has treated about 136,000 cubic meters (36 million US gallons) of MIW.

Jan 1, 2010

By D. R. Gibbons

This morning I would like to speak to you about an area of chemistry that is enjoying a revival-organometallic compounds. This renewed interest, principally stimulated by defense needs, has already created new markets for the products of the mineral industry. Although the consumption of metals in these new products is modest at oresent, several hold promise of importance. Because this is a new and growing market, I am sure the Council of Economics is aware of many of its facets and is interested in new developments. Of course, the chemical industry has been a significant consumer of minerals for many years. I estimate that in 1957 the chemical-industry purchased a total of $1175 million worth of minerals as raw materials (not including fuels). This estimate can be broken down as follows: [Metals and metallic minerals $375 million Nonmetallic minerals (excluding hydrocarbons ) 330 million Hydrocarbons 470 million $1175 million]

Jan 1, 1958

By Hans E. Tausig

The economics of transporting minerals by sea in less than full cargo lots encompasses an analysis of production costs, sale and inventory calculations and a careful comparison of ocean freight costs all of which when pieced together will usually definitively indicate which of the ocean freight alternatives is the correct one for the economic factors involved. To illustrate: Let us assume that a production to be marketed yields 60,000 metric tons of copper concentrates over a twelve month period. Shipment is geographically viable through Vancouver, B.C. The production has been sold to a Japanese Smelter and the mine produces at a rate of 5,000 metric tons of concentrates per month. The copper has been sold CIF FO. The Seller has carefully investigated ocean freight rates Vancouver, B.C./Hibi, Japan and finds that he could obtain a twelve month freight contract at $15.00 per metric ton FIGS based on a loading/discharging speed of 4000/ 2000 metric tons per WWDSHEX (weather working day, Sundays and Holidays excluded) this freight rate being predicated on shipping in lots of minimum. 15,000 tons. A further freight investigation reveals that to ship at the same terms and conditions but in lots of 5,000 tons, and shipping each month (in accordance with the mine's actual production) would cost $20.00 per metric ton FIOS. The calculation that is now made is whether it is more desireable to pay a higher ocean freight by shipping in 5,000 ton lots or to pay the lower freight where here the ocean freight involves a difference of some $300,000.00.

Jan 1, 1979