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By E. L. Kapfer

A preliminary description is made of the field of automation and optimization of the oxygen blast furnace process. The concept of static and dynamic process control is illustrated. After a short general description of all factors concerning the optimization of this process, a learning system is derived which gives better results than models previously used. This learning or self-adaptive control system uses statistical methods with exponential aging of process data and requires derivation of multi-variable functions of the process for which measurements can be made available. The practical application of this new procedure and of additional measuring instruments are discussed, and results obtained in plants using the adaptive control system are described. A survey of European steel plant automation using the Siemens technique is presented.

Jan 1, 1969

Today, the employment of the modern hammer drill, using hollow steel, with air or water to expel the cuttings from the drill hole, is the rule rather than the exception in practically all rock-drilling operations. There is considerable carelessness in the matter of keeping the hole in the drill steel properly opened. Plugged steels wholly or partially, prevent proper operation of the drill, whereby drilling speed is retarded, water tubes are bent or broken, and time is lost in tink-ering, or, as often happens, the drilling gang is idle while someone makes a trip to the shop after another drill steel or water tube. To relieve this condition, the Ingersoll-Rand Company has developed, as an auxiliary to the Leyner sharpener, a new device-the Leyner shank and bit punch.

Jan 4, 1918

By George C. Toland, Ronald E. Versaw

Most existing impoundment ponds and dams leak effluent into the soil or rock upon which they are constructed. However, proposed environmental legislation will require very stringent control of the release of toxic effluents such as cyanide. More exacting investigation, design, and construction techniques than have been used in the past will be required to satisfy these new regulations. The types of field and laboratory investigations required to develop the data for the design of an impoundment system containing toxic effluent are discussed, together with the technical considerations necessary to design this system. Design topics include reservoir sealing with natural and man-made materials; embankment sealing; embankment design considering stability, surface hydrology, capacity, and downstream catchment basins; and special implications of cyanide effluents.

Jan 1, 1977

By W. D. Robertson, Raymond C. Boettner

A study was made of the change in density during the first (transient) and second (linear) stages of the creep curve of polycrystalline copper as a function of 1) stress, 2) temperature, 3) plastic strain, 4) impurity and atmosphere effects, and 5) structure, including single crystals. Voids were not observed in single crystals strained 15 pct at 500°C, or in a polycrystal-line aggregate produced by recrystallizing a single crystal, within the limit of sensitivity, Ae/e = 1 x 10-4. It appears that voids are heterogeneously nucleated at grain boundaries by an insoluble phase, or phases, which can be removed by directional solidification. The principal controlling mechanism of void growth appears to be condensation of vacancies at grain boundaries. Vacancies are transported to a boundary and condense as a consequence of the tensile stress component across the boundary, which depends on the orientation and configuration of the boundary plane and on boundary shear across ledges and other irregularities. The ultimate source of vacancies is the free surface and diffusional transport is by way of the boundary plane. PREVIOUS investigations have dealt with the nucle-ation of voids at grain boundaries under creep condition~'-~ and with the connection between grain boundary voids and subsequent brittle fracture.5-7 Growth of voids during the creep process, particularly in the transient and linear stages of creep, has not been studied with the same intensity. Therefore, it seems pertinent to investigate the process of void growth with respect to the related creep curve, and the morphology of growing voids with respect to the structure.

Jan 1, 1962

By David Segura

THE Huitzuco mercury deposits have been described by C. W. Vaupell,1 therefore the general information such as location, history, production, etc. will not be repeated here. The present owners acquired the property when the deep levels of the Cruz mine were flooded, and it was believed that a relatively large tonnage of low-grade ore and fills would be encountered in the flooded section, because f the early mining methods used in the Cruz mine. The mine was partly unwatered and about 187,000 tons of fills was pit-sampled in the San Cayetano stope. These fills average 2.4 kg. Hg per. ton. During the period of maximum production at Huitzuco, the ores were sorted in the mine and cobbed into 3-in. pieces, which were treated in Scott furnaces. Large pieces of raw ore are found in the sinter, and it is indicated that both recovery and, costs were not very satisfactory. Recent practice has been to treat the ores in closed retorts made of 10-in. pipes. Because f the presence of combined antimony in the mineral livingstonite (HgS.2Sb2S3) and considerable native sulphur, little or no metallic mercury is recovered in the condensers and a second retorting of the condenser muds is-necessary. This makes the treatment of the ores expensive and tends to low recoveries of mercury. The prin-cipal costs of retorting are, in their relative order: (1) fuel, (2) low recov-ery of mercury, (3) replacement of retort pipes, (4) labor.

Jan 1, 1938

By Clifford S. Wilson

ScReened pipe is designed with the view of restraining the fine, free-running sands of the production zone from entering oil wells. Its successful use is dependent on a number of factors. The nature and effects of some of these factors can be determined through experiment and observation, but some of the elements that have a distinct bearing on the use of screened pipe can be evaluated only by estimate. The important subsurface conditions which affect the use of screened pipe are: 1. Depth of production zone. 2. Extent of production zone. 3. Reservoir pressure. 4. Character and relative quantity of oil and gas. 5. Character of sediments: a. Cossolidation of beds. b. Variation in beds. c. Grain-size gradation of sands. d. Free-running characteristics of sand from different levels. Aside from the use of mechanical equipment and tools, the measures to be taken in the installation of screened pipe involve: 1. Size of liner. 2. Length of liner. 3. Design and mesh of screen. 4. Portion of liner to be screened. 5. Manner of setting liner. 6. Preparation of or washing of the well before or during the setting of the screen. 7. Manner of bringing in the well. 8. Manner of flowing the well. Values applicable to the actual subsurface conditions that exist at any well can only be approximated. The accuracy of the estimate will be measured by the amount and quality of the evidence at hand and the personal factor of ability to interpret the evidence fairly, whether

Jan 1, 1933

By E. H. Mohr

AT the McGill concentrator of the Nevada Consolidated Copper Co., all flotation operations have been carried out in Forrester cells since November, 1926. In respect to cost of operation, the new cell has proved to be superior to the Callow, which it supplanted, and its incorporation in the flow sheet has resulted in a marked improvement in the metallurgy. Before citing the advantages of the new machine over the old, it should be explained that the Forrester has not only replaced the Callow, but it has made possible the elimination of a number of tables as well. When Callow cells were in use, table concentration preceded flotation. The ball mill pulp was elevated, by means of air lifts, to roughing Wilfley tables situated two floors directly above the flotation floor. On an intermediate floor were additional tables which cleaned the concentrate from those above. The finished table concentrate constituted approximately 60 per cent. of the total mill production, and contained about 40 per cent. of the recovered copper. The table tailings were returned to the classifiers, the overflow from which went to the flotation cells and the oversize to the ball mills. As soon as the Forrester cells were installed, this tabling operation was discontinued. The ball mill pulp now discharges into the classifiers direct, without the intermediate tabling. It was impracticable to employ the present flow sheet when Callow cells were in use, for the reason that unless the greater part of the heavy mineral was first removed, it accumulated on the mats and adversely affected the flotation operation. By tabling ahead of flotation, it was practicable to maintain the concentrator at 10 to 20 per cent. greater capacity (depending upon the pyrite content of the ore) than was possible by flotation alone. This was due to the necessity for finer grinding in the latter case. Even though the table concentrates contained only 6 to 8 per cent. copper content, the low smelting costs made it advantageous to operate at high mill capacity, at the cost of low grade of product.

Jan 1, 1927

By R. P. Carreker

GERMANIUM is a member of that group of ele-nents—carbon, silicon, germanium, and tin-— that are currently of particular interest because of their interesting electrical properties. Near room temperature these materials of diamond cubic crystal structure are characteristically brittle. However, there have been several recent reports that germanium is not brittle at elevated temperatures These observations may be summarized as follows: 1—Germanium single crystals were observed to creep in bending under a maximum fiber stress of 6 kg per mm&apos; (8500 psi) at 500°C and above.&apos; The creep curves were sigmoidal, with an induction period that decreased with increasing temperature. 2—Germanium crystal bars have been bent 90" about radii ten times the bar thickness at 550°C.&apos; 3—-Audible clicks were heard when l/4 in. thick crystals were bent drastically at 450" to 500°C. No microstructural evidence of mechanical twinning was observed 4—Slip lines have been observed in tensile specimens deformed at 600°C, and are coincident with (111) planes, the close-packed planes of the diamond cubic structure.] The slip direction has not been established. 5—A germanium crystal has been compressed approximately 20 pct along a <110> axis at 700°C." The results reported subsequently were obtained in exploratory experiments intended to indicate some aspects of the behavior of germanium single crystals when tested in simple tension. Specimen Preparation A single crystal bar of n-type germanium was used. It was of purity corresponding to a resistance range of 2 to 20 ohm-cm. Tensile specimens were prepared by cutting small rectangular bars

Jan 1, 1957

By R. T. Moolick, John E. Neill, O&apos

In selecting a particular stripping method the ultimate aim is the removal of material at the least possible cost. Accomplishment of this goal requires the careful consideration of many factors including geologic and topographic information, proximity of the stripping operation to waste disposal areas, possible problems of land reclamation, types of suitable equipment available, and auxiliary equipment requirements. 4.2-1. Selection of Stripping Methods. The size of an orebody and the distribution of values within that orebody normally will limit the variety of economical stripping methods which need to be considered. Much may depend upon the selectivity required in the mining due to the relationship between ore and overburden, as well as the character of the overburden itself. The following factors concerning the geologic nature and environment of an orebody, as well as the production requirements, must be determined before any selection of equipment is made: 1. The size of the orebody and distribution of the values within that orebody. Is the ore massive or scattered, bedded or disseminated, thick or thin? 2. The nature of the overburden to be removed. Is it a hard dense rock, bedded rock (thick or thin), friable material, earth, sand, elay, marsh, etc.? 3. The character and significance of geologic structures (fractures, faults, shear zones, etc.) associated with the ore occurrence. Are there water bearing formations with resulting water disposal problems? 4. In considering the nature of the overburden, including its alteration products, the physical or chemical conditions which, when combined with anticipated climatic conditions, may render certain equipment inoperable during unfavorable seasons.

Jan 1, 1968

By W. T. Burns

Attempts were made in 1908, at the Great Falls Works, to produce ingots direct from the Butte precipitate by smelting the material in a reverberatory refining furnace. The ingots produced in this manner averaged 99.4 per cent. of copper and 0.40 per cent. of arsenic and antimony. The copper content being considered too low, it was decided to cast the copper into anodes and to treat the anodes in the electrolytic plant. No. 1 Furnace, in which the precipitate was treated, was a regular cathode refining furnace previously employed in making wire bar, cake, and ingot from electrolytic cathodes. The hearth of the furnace was 24 by 12 ft., having a capacity of 100,000 lb. of cathodes. The furnace was coal fired, and the copper was dipped by means of trolley ladles. The average composition of the furnace charges was as follows: Per Cent. Peer Cent. Copper. Precipitate,..........7.5.3 40 to 80 Purification cathodes,.....1.9 92 Refinery slag (oxide slag),.. 10.1 50 to 60 Electrolytic cathodes,... 2.1 99.9 Precipitate anode scrap,.... 3.1 99.0 Scrap copper,.........7.5 99.2 100.0 The slag from this furnace amounted to 46 per cent. of the total amount charged and was of the following average composition: Per Cent. Cu..............16.86 SiO2.............34.7 FeO.............18.8 A12O3.............13.0 CaO.............9.4 MgO.............2.7 S............... 0.47 As..............0.11 Sb...............0.006 Ag, oz per ton.....0.18

Jan 1, 1914

[Estimated Receipts Dues: Arrears $ 3,500.00 Current 108,115.00 New Members 11,937.00 In Advance 1,763.00 $125,315.00 Initiation Fees 7,250.00 Initiation Fees-Additional if increased to $20.00 7,250.00 Sale of Transactions....3,000.00 Sale of Binding 7,092.00 Sale of Magazine 2,913.00 Sale of Pamphlets 70.00 Sale of Indexes and Emmons Vols 313.00 Sale of Pyrometry 900.00 Sale of Raymond Vol 100.00 Interest received on Bank Balance 500.00 Interest received on Life Memberships 500.00 Advertising-Gross 27,000.00 Voluntary Subscriptions-Estimated 16,000.00 Income from James Douglas Fund 5,000.00 Total $203,503.00] [ ]

Jan 1, 1925

By Ulrich H. Roesler

RECENTLY, C. Zener1 published a new thermo-dynamic treatment of the a/y transformation in iron alloys. His interpretation differs from the previous theories2-0 ainly through the separation of the free energy difference, Ga—G, into two additive

Jan 1, 1957

By R. F. Krueger, L. C. Vogel

A design is presented for an electrical analog computer which can solve non-steady state heat transfer problems in an extensive radial forrnation containing a moving cylindrical source. The computer is used to simulate a .simplified thermal oil recovery process in which heat transfer from a moving, constant temperature source takes place radially by conduction only. Temperature distribution curves are .shown for several different assumed modes of travel for the heat source. The data are used to estimate the residual fuel requirements necessary to maintain a self-propagating isotherma1 front for the particular system being studied. Although the computer is designed to represent an unique system. conversion factors can he adjusted to show the effects of changing the assumed values of system constants, such as thermal conductivity of the formation and temperature of the source isotherm. Examples are given to illustrate the relative influence the assumed values of these variab1es will have upon the quantity of fuel required to maintain the source. The maximum effect of heat transfer by the flowing air stream is estimated mathematically, and full requirements for this system are shown to he markedly reduced. Inasmuch as the examples discussrd refer to a simplified process, the results are not directly applicable to a practical field operation. It is believed, however, that the data il1ustr-ate some general trends which are important in thermal recovery processes. Data from laboratory and field experimentation can he used to modify the computer to take into account the influence of heat transfer by various mechanisms, for example, by injected air and by fluids ahead of the hot zone. With .such refinements it would be possible to estimate more accurately the limiting values for the rate of travel of the high temperature front and for the required air- injection rates. Use of this computer should aid in evaluating the economic feasibility of oil recovery by various thermal processes. It is hoped this paper will stimulate further work by others to help accomplish this objective. As the costs of exploration for and development of new oil fields rise. increasing the recovery of oil from established fields becomes more and more important. In fields containing low gravity crude oil, ultimate recoveries by primary means are sometimes less than 10 per cent and often total only 10 to 20 per cent of the oil in place. Conventional secondary recovery methods are not always effective in increasing this total. Methods which have been proposed for increasing the recovery of viscous oils include thermal processes for increasing the mobility of the oil. One method is to provide a moving heat source generated within the formation to heat the oil and a flowing gaseous medium (for example, air) to sweep the oil to the producing wells. The possibility of such a process has intrigued engineers for many years.&apos;. &apos;." but little or no information has been available in the literature relative to the technical or economic feasibility of this method. Recently, however, interest has been revived by publication of laboratory and field test results indicating the feasibility of maintaining

Jan 1, 1956

By E. T. Turkdogan, P. Grieveson

Molten silver is equilibrated with silicon nitride at 1400°C in nitrogen + hydrogen gas mixtures, and from the solubility data the activity coefficient of silicon is found to be 1.76 at silicon concentrations below 1 pct. Using this value, and that available from the silicon cmbide solubility measurements, together with those derived from the phase equilibrium diagvam, the activities of silver and silicon are estimated for the entire composition range. The main feature of the activity data is that there is a pronounced positive deviation from ideality. The activity of silver in molten silver containing up to 5 pct Si was determined by Schadel, Derge, and Birchenall1 by measuring the vapor pressure of pure silver and of the alloy over a temperature range of 850º to 1050°C. They deduced from their results that there is a positive deviation from Raoult&apos;s law and that the activity coefficient of silver increases with decreasing temperature. However, as pointed out by Kubaschewski and Catterall,2 their activity coefficients are much too high, giving silver activities greater than unity. At a later date McCabe and Birchenal13 showed that the previous vapor pressure data on silver4 were high by a factor of about 1.3; presumably a similar error must have occurred with the vapor pressure measurements on the Ag-Si alloys. The activities of silicon and silver calculated by tager&apos; from the phase diagram and by Gibbs-Duhem integration, respectively, show a positive deviation from Raoult&apos;s law for silicon activity and positive and negative deviations for the silver activity. According to these computations, at infinite dilution of silicon ygi = 1.12 at 1420°C. d&apos;Entremont and chipman6 measured the solubility of silicon carbide in molten silver at unit carbon activity; the equilibrium silicon content is found to be Nsi = 0.017 ± 0.002 atom fraction for 1420°C. Using the data of Grieveson and Alcock7 for the free energy of formation of silicon carbide from pure silicon and graphite, the activity of silicon for unit activity of carbon and of silicon carbide is asi = 0.0308 at 1420°c; therefore for the above solubility data on silver, YSi = 1.81, which is somewhat higher than that given by Hager. Use is often made of silver alloys in the measurements of activities of solutes in metals where silver has a very low solubility; in fact, Ag-Si and Ag-A1 alloys have been used in the past for such purposes. In an attempt to gain more thermodynamic data on molten Ag-Si alloys, measurements have been made in the present study on the solubility of silicon nitride in molten silver; the results on these solubilities are given in this paper together with a detailed discussion of activities of silver and silicon. SOLUBILITY OF SILICON NITRIDE The standard free energy of formation of silicon nitride is known with a reasonably high degree of accuracy. According to the measurements made by Hincke and Brantle8 and by Pehlke and Elliott,&apos; the following are the free energy data for the standard states of solid Si3N4, liquid silicon, and Nz at 1 atm pressure:

Jan 1, 1963

OFFICERS AND COMMITTEES C C Long, President John Chipman, Past President J S Smart, Jr, Vice President T D Jones, Treasurer R W Shearman, Secretary AIME, 29 West 39th Street New York 18, N Y D C Johnston, Assistant Secretary

Jan 1, 1960

By F. E. Griffith

Several disastrous and a great number of near-disastrous mine fires have been started by igniting the combustible conductor insulation and outer covering of trailing cables. Those who have had experience in fighting such fires know that they are extremely difficult to combat and extinguish owing to the irritating and noxious gases, fumes and vapors evolved from evaporation, distillation and combustion of the sundry compounds used in the construction of cables. When electric-motor-driven coal-cutting machines were first introduced in coal mines, the electricity was transmitted to the apparatus by two single-conductor trailing cables. Later, two-conductor parallel and concentric types were developed. These early cables were made with the materials available at that time with relatively little thought given to using new materials or utilizing the old to the best advantage. The copper conductors were stranded to give flexibility, but there were too few strands and the method of laying them was such that they did not endure well the stresses of twisting and pulling, to which trailing cables used in mines are usually subjected. The rubber insulating compounds used were not satisfactory in resisting water, high temperature, and the crushing stresses encountered in mine service. The outer coverings were cotton or jute braids saturated with tars or asphalts having relatively no abrasive resistance. In fact, the only consideration given to trailing cable design because of its extremely short life, was to construct it at the lowest possible cost. With increased electrification and mechanization, more serious problems were encountered. Cables used in mines were exposed to more severe conditions than in any other industry. The excessive overload currents, poor heat dissipation, severe abrasion, crushing loads from falling material, runovers, and any of the other things that tend to destroy cable, called for vast improvement in trailing cable design for mine use. About 1918, one manufacturer who recognized the need for improving the toughness of cables in order to obtain greater safety and longer life, developed a special rope-stranded conductor, a superior rubber insulation compound and a tough rubber sheath or jacket compound. As a result of this type of construction, broken conductor strands were practically eliminated, the insulating material withstood high temperature without undue disintegration, and the jacket, similar to that used for automobile tire tread, had high abrasion resistance, high tear resistance, and was waterproof. While the initial cost of these cables was higher than the jute-filled braided types, this disadvantage was more than offset by increased safety and longer service. Cables with these improved characteristics were first installed in mines in 1920. Since 1930, the use of braided trailing cables in coal mines has been almost completely supplanted by the more superior types, employing high-grade rubber compounds for insulation and sheath. The next steps taken to improve the

Jan 1, 1949

By Michael Perch, Charles C. Russell

Nearly 75 per cent of the total coke production in the United States in 1940 was consumed in blast furnaces. In 1939 the percentage was 69.9, and in 1938 it was 61.3. To produce a net ton of pig iron 1757 lb. of coke was required in 1940 and 1760 lb. in 1939. These figures indicate how dependent the production of pig iron is upon the production of coke. The rate of iron production is in some measure influenced by the physical and chemical characteristics of the coke. Blast-furnace operators believe that the physical properties of coke profoundly influence the operation of the furnace. Although it is true that coke of a wide variety of physical properties is used in American blast furnaces, the periodic fluctuation of these properties is one of the causes of irregularity of blast-furnace operation. The purpose of this paper is to present a broad picture of the physical properties of by-product coke that are generally considered to be important by coke-oven and blast-furnace operators. Effects of the kind of coal used, the preparation of the coal, the rate of coking, and other factors will be considered. Of all these variables, the kind of coal used is by far the most important. In this discussion use will be made of the method of coal classification by rank1 standardized by the American Society for Testing Materials. Although this method of classification has been an American standard for several years, it has not been given the attention it deserves, especially in connection with the selection of coal for production of coke. Despite the fact that many producers of blast-furnace coke are limited to some particular source or sources of coal, a good understanding of the principles involved in setting up the standard method of classification may lead to a better appreciation of the causes of changes in coke characteristics. Furthermore, where it is necessary to select new coals as a substitute for the original supply, this method of classification can be of great assistance. The data presented have been gathered from many sources, but no attempt has been made to cover the vast literature. Instead, some of the more important data have been selected to show how coals and their carbonization affect some of the physical properties of coke. It must be emphasized that generalizations concerning the behavior of coking coals are presented and that individual coals may vary widely from the specific behavior depicted. Nevertheless, it is believed that the data illustrate certain typical behaviors. Neither was it possible to cover completely all the factors involved; for example, the macroscopic constituents of coal are believed to have important effects on the physical properties of coke, but since there is little information available for such study, and since vitrain, clarain, and durain are neither

Jan 1, 1942

Vice-Chairmen GEORGE D. BARRON, PHILIP N. MOORE, EDWARD H. BENJAMIN, ROBERT H. RICHARDS, FRED H. BOSTWICK, MILNOR ROBERTS. ELI T. CONNER, CARL SCHOLZ. C. R. CORNING, WILLIAM WRAITH, WALTER DOUGLAS, THOMAS T. READ, Secretary, Woolworth Bldg.. New York, N. Y.

Jan 1, 1917

E. W. King, Bozeman, Mont.: The form of measuring up ore in sight looks very plausible, as illustrated in the paper of Mr. Emmons, but from my experience of many years of mining in Montana and Nevada, I have found it is very hard to measure up anything nearer than a guess of what you have in sight, except in the case of a true vein, or a flat vein where the boundaries are well defined. I have been interested in several miues with Dr. A. R. Ledoux, and I know that my foreman and myself, going into the mines and using our best judgment, could seldom see more than 30 days&apos; supply actually in sight, and yet we were running from 100 to 250 tons a day, and keeping it up year after year. Prof. John D. Irving, New Haven, Conn.: I understand from Mr. Emmons that this is a method which has been found applicable in the copper-mines in Tennessee, where the record could be made with a good deal of accuracy, and where the work in the mines allowed the necessary development to be done, so that the record could be kept up. I do not think there was any intention in his mind to imply that this was applicable to all cases, especially such as Mr. King has mentioned. President Charles Kirchhoff, New York, N. Y. : I think the point is that the paper impresses the necessity for doing it where the possibilities exist. There has been too little attention given to this very matter, particularly in the United States; but I think our English friends are following it very much more zealously, and the demand for it there is possibly greater than it is here, because English boards of directors handle mines that are often very much further away than our own are, and the English public and the English engineers generally are very much more insistent upon seeing how much longer current dividends are going to last, or current assessments are going to continue.

Jan 1, 1913

By Leons Kovisars

Introduction Competitive analysis is the collection and evaluation of data on a product, a product line or on an entire industry. Much of the focus of competitive analysis centers on production volume and the price targets of the competitors. In actual practice capacity may be used in place of production volume. Similarly, unit production costs and individual producing units - mines, mills, smelters, refineries - may be the targets of the analysis. The purpose of competitive analysis is to provide information for strategic planning. The analysis will locate the position of the company in the industry and define the competitive margin -- or lack of a margin - between the company and other producers. The analysis can show the current situation and may be expanded to examine the outlook for the future. The forecast option is particularly valuable because it will show the opportunities for new project development or the expansion of current production. Similarly, the forecast will show the potential threat from new entrants, and may provide early warning to reconsider operations that may become uncompetitive in the future. Production cost analysis is a clearly understood means to evaluate producers and estimate the outlook for their profitability. The cumulative cost for the industry outlines the supply structure and defines the marginal cost of production used in developing price forecast as explained in the sub- sequent section of this paper. Competitive analysis is particularly important to the mining industry, notably to metal producers. The final product is typically a purified metal conforming to standards, and interchangable with the output of other producers, i.e. a fungible commodity. Brand loyalty is questionable in the mineral industry. Consumers will show a preference for specific brands, but this preference will be limited to a premium of several percent over the general market price. Price and assurance of supply are the keys to marketing success. Assurance of supply depends on geopolitical considerations and production capabilities. Price will be closely related to cost of production and a thorough competitive analysis should describe the cost structure of the industry. This snapshot will locate one&apos;s own position and provide an immediate and readily understandable evaluation of the hazards and opportunities inherent in this position. In the following section we shall discuss elements, methods and sources for competitive evaluation. ELEMENTS OF COMPETITIVE ANALYSIS The practice of systematic collection and analysis of data on competition is hardly a new concept; see, for example, Wall (1) or Porter (2). However, most discussions have been in the context of conventional industrial or manufacturing industries, with a focus on product lines and brand marketing. These considerations are not irrelevant to mining but they do have only a limited application. The key to success in the mining industry is minimizing the cost of production. However, this simple concept becomes complex when we consider relevant costs and the planning horizon. Production costs include the factors consumed in production, namely labor, fuel, energy, materials and supplies. The cost also includes purchased and contracted services such as freight, smelting and refining, sampling and sales required to convert ore to the finished metal. Royalties and ad valorem taxes paid on gross production are direct expenses, as is the cost of administration required by the production units. The sum of these outflows is the total cash cost, the expense that has to be paid in cash in order to continue production. Indirect costs incurred by a producer will commonly include allocated headquarters expenses, as well as the capital charges associated with equity investment and debt. Profit is not generally considered an indirect cost even though it represents the cost of using the owner&apos;s capital; similarly, income taxes represent the government&apos;s participation in the profits of the enterprise. Interest payments are considered as a direct expense in some cost studies, but many competitive evaluations would consider

Jan 1, 1985