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By J. Holmes Armstead, John L. Dobra

This paper examines some lesser known risks in foreign investment by U.S. companies that derive from international judicial activism by U.S. courts and the potential for extending U.S. anti-trust regulations to companies' foreign operations. The discussion of international judicial activism reviews the implications of the U.S. Second Circuit Court's ruling in the Union Carbide/Bhopal case for U.S. companies investing abroad and the discussion of extending U.S. anti-trust regulations focuses on proposals coming out the Clinton administration's Justice Department.

Jan 1, 1996

By V. W. Smith

For the past 50 years, the primary crushing of stone at the Dolase Bros. Co. Richards Spur Quarry. 13 miles north of Lawton, Oklahoma, has been accomplished by a Traylor 42-inch gyratory crusher. The production capacity of the primary system, consisting of a feeder, grizzly, and the gyratory crusher, was approximately 2100 tons per hour. Shot-down scone was hauled from the working face about one mile to the feeder by a fleet of Caterpillar Model 773's and WABCO 60- and 65-ton trucks. In order to maintain production, nine to ten trucks and four Caterpillar Model 992 front-end loaders were required to be operational at all times.

Jan 1, 1986

By Vanessa M. Torres

Diagnostic leaching tests provide a good indication of gold deportation in its various occurrence phases. With the results of these tests, possible flowsheets for difficult ore treatment can be established for further evaluation and plant operation can be optimized. The use of this technique can be extended, including heap leach evaluation and complex copper-gold ores. The results on the use of diagnostic leaching tests in gold ores from Companhia Vale do Rio Doce (CVRD) are presented and discussed, as well as the methodology to select steps and interpret results used at CVRD Technology Center (Sutec).

Jan 1, 1998

By R. J. Sweigard

Stabilization of slopes on abandoned mine land (AML) invariably involves some channelization to control surface drainage. Typically, these channels are lined with riprap or gabions, depending on gradient and expected flow rate. The conventional treatments pose a problem since they require frequent maintenance and replacement at times. Soil bioengineering presents an alternative to the conventional measures. In soil bioengineering, living woody plant material forms the main structural component in systems designed to prevent shallow mass slope failures, surface erosion, and channel bank erosion. An experimental application of soil bioengineering techniques was designed and implemented at an AML site in eastern Kentucky. The design consisted of live fascines and live stakes using willow branches installed with coir geotextile. Channel gradient, length, and cross-section were considered in the design.

Jan 1, 1998

By K. Thomson

The Mule Canyon gold deposit, located 14 miles ESE of Battle Mountain, Nevada, was discovered in 1986 as the result of a GFMC grass-roots exploration program. Drilling to date has identified six discrete orebodies which contain a demonstrated gold reserve of 8.487 million tons at an average grade of 0.136 oz/ton, totaling 1,152,000 ounces. Mineralization is associated with argillic alteration and silicification, localized along NNW trending high-angle faults within Miocene basaltic andesites. Trace element geochemistry at Mule Canyon is typical of upper level hot spring precious metal systems, displaying elevated Ag, As, Sb, Hg, and Se.

Jan 1, 1993

By Robert L. Vines

"What is past is prologue" - motto of National Archives The question of past, present, and future safety performance in the coal mining industry is not merely an academic one, or one which arises from soul-searching curiosity. It is a question involving pragmatic ramifications, and the answers, or perhaps the public perception of the answers, will have a strong impact on the public policies which influence the course of meeting the Nation's future energy demands. Those of us in the coal industry are keenly aware of the significant impact of the public reaction -- in the form of the 1969 Health and Safety Act -- to -past performance of the coal industry which it found unacceptable. That Act was revolutionary -- and it was expensive. But in finding the industry's past performance unacceptable, the public also recognized its own contributory role through having enjoyed a "buyer's market" forced on a highly competitive industry. One result was to limit the industry's resources and restrict its ability for self-improvement of its safety performance. In acknowledgement of that role, the public picked up the tab for Black Lung disability incurred prior to that time.

Jan 1, 1985

By Sadatoshi Ohmori, Simin Zhai, Devini Abeyawardena

A road tunnel is planned to be constructed in soft, high overburden ground of around 600 m in Japan by using the center drift advancing method. The dodging effect and early ring closure of the center drift were expected to reduce the displacement and deformation of tunnel and promote safe construction. The measurement result during construction was analyzed and those effects, which the displacement and deformation after the widening excavation decreased and its effect increased as the center drift radius increased, were confirmed by numerical analysis. Also, the effect of the early closure of center drift after widening excavation did not have much effect.

Jun 23, 2024

By Neal P. Cochran

The United States is faced with increasing demands for electricity, coupled with continuing demands for crude oil and gas. Superimposed on these' national requirements are our national requirements for clean air and elimination of thermal pollution of our rivers. From the coal viewpoint, this situation is complicated still more by the rapid advances in nuclear power. In this paper, I hope to show a way to use our Western coals as a solution to this involved national problem by producing: 1. High quality crude 2. Low cost power 3. Economic byproducts We could expect these products to be made at one site in an integrated plant that would mine (extract) coal, process it, and convert it to electricity. Perhaps the most important attribute of the plant is its reduced water requirement and the elimination of air pollution from the power cycle. Quite logically, such a plant would probably recover valuable byproducts, such as pipeline gas, sulphur, cement, aluminum, and the like. Although the plant projected in this paper is a conceptual one, it is based on work now underway by Government and industry. Prediction of the future is a most hazardous occupation, but plants such as the one projected are based on current knowledge and can be expected to reach commercial operation in the near term future.

Jan 1, 1967

By N. R. Hasenmueller, V. Rajaram, R. K. Leininger, D. D. Carr

The content of the paper by V. Rajaram does not fulfill the expectations of the title. But Rajaram submitted the article in October 1983, and he could not have foreseen the numerous developments that would occur before his paper was published more than two years later. Nevertheless, Rajaram failed to mention the interest in oil shale development in southern Indiana beginning in late 1979 and continuing through the present as a result of special financial encouragement of three oil shale projects in May and August 1984 by the Indiana Energy Development Board and the Indiana Corp. for Science and Technology. A session at the 1985 Eastern Oil Shale Symposium in Lexington, KY, Nov. 18-20, 1985, gave the current status of oil shale developments in the eastern United States. Speakers at this session reported on the three Indiana projects. First, Gary D. Aho, Cliffs Engineering Inc., spoke on a feasibility study by Cliffs Engineering and Allis Chalmers for a site-specific pilot plant using the Allis Chalmers process. The plant site is in Clark County, IN, on property of the Midwest Energy Resources Co. The project is funded by $240,908 each from the Indiana Energy Development Board/Corp, for Science and Technology (EDB/CST) and the US Department of Energy (DOE) and $120,454 from the corporate sponsors (total $602,270). Completion is scheduled for mid-1986. Next, Edwin M. Piper, Stone and Webster Engineering Corp., discussed the American Syn-Crude/Indiana Oil Shale Project. This effort followed the completion of two smaller projects funded by the Indiana EDB/ CST: "Testing of Indiana Oil Shale in a Petrosix Pilot Plant" (total funding by EDB/CST at $50,000) and "Assessment of the Petrosix Process for an Indiana Shale Oil Plant" (total funding by EDB/CST at $100,000). The status at the time of the report at the Oil Shale Symposium was that a request for an extension of time for securing nonfederal support had been submitted to the US Synfuels Corp. The proposal included building an 11-m (36-ft) diam retort in south-eastern Indiana to process the New Albany Shale and to produce 366 m3 (2300 bbl) of shale oil per day by the PETROSIX process. The Indiana EDB/CST had contracted with Stone and Webster at $401,100 from EDB/CST and $245,835 from Stone and Webster for activities to advance the project in the negotiations with Synfuels Corp. At the time of the report, this project was the only eastern oil shale proposal that was still on the agenda of the Synfuels Corp. As a result of Congressional action in late December 1985, federal support from the Synfuels Corp. is no longer possible. Finally, Victor H. Carr, Eastern Shale Research Corp., described his firm's project, which is jointly supported by DOE ($227,749) and the Indiana EDB/ CST ($73,850) and is entitled "Feasibility Study to Determine Suitability of an In-Situ Process to Recover Hydrocarbons from Eastern Shale." An area in Scott County, IN, had been chosen, but not a specific 9 x 15-m (30 x 50-ft) site. One burn of a small in situ retort is contemplated as part of the project. Besides these three projects, several reports on shale research were presented. Joseph Damukaitis, American Syn-Crude Corp., reported that a pilot plant using the hydrogenation-extraction (H-E) process (described at the 1984 Eastern Oil Shale Symposium) was 94% built and would go through shakedown with oil shale but would then shift mechanical devices to process coal mine waste. Current status of research on the HYTORT process was then presented by Raymond C. Rex, Jr. Oil shale beneficiation research at the University of Alabama/Minerals Research Institute was reported by R. Bruce Tippin. Scott D. Carter discussed continued research on fluidized-bed retorting of shale at the Kentucky Center for Energy Research Laboratory. Carl E. Roosmagi of DOE, Morgantown, reported on the oil shale research at the Morgantown Energy Technology Center (METC) laboratory. Henry J. Gomberg, Ann Arbor Nuclear Inc., discussed "Radiation Combined with Donor Solvents for Extraction and Up-Grading of Kerogen." Aurora M. Rubel and coauthor Eileen Davis presented results of research at the Kentucky Center for Energy Research Laboratory under the title "The Effect of Shale Particle Size on the Products from the Bench Scale Fixed Bed Steam Pyrolysis of Kentucky Sunbury Shale." Lastly, Maria Rockwell, Technical University of Nova Scotia, presented "Processing and Up-Grading of Low Grade Nova Scotia Oil Shale for Potential Use." A review of shale oil prospects by Gerald Parkinson in Chemical Engineering for Feb. 3, 1986, covers both western and eastern projects and includes a report that the US DOE is funding a few relatively small projects; most of the fiscal 1986 budget of $12 million for shale oil is for fundamental research. Projects include a $3.2 million three-year contract with Hycrude Corp. (Chicago) for development of the HYTORT process and a $1.2 million three-year contract with the University of Alabama's Mineral Resources Institute on beneficiation of eastern oil shale by froth flotation. The report incorrectly states that current projects include a total investment of $466 million in a pair of 18-month technical and economic feasibility studies for proposed projects in southern Indiana. The correct figure is $468,657 [$240,908 for the Cliffs Engineering/

Jan 1, 1987

By M. Hodgson

The redox reactions that occur on pyrrhotite and pentlandite in contact with oxygenated deionized water were examined using voltammetry. Reactions were put forward in which both minerals were progressively hydroxylated to form thermodynamically metastable surface intermediate products. These intermediates were modelled as metal deficient sulphides where a sulphurous layer was coordinated onto the remaining metal sites via polysulphides. Prior to hydroxylation pentlandite exhibited changes in the surface stoichiometry which were not related to pH effects. The formation of polysuiphide-sulphur intermediates were believed to promote collectorless; flotability for the two minerals. Microflotation tests (0.3 g samples) verified that the surface potential and particle size affected the flotation response, excessive oxidation inhibiting the minerals' flotability. Larger scale tests using ore samples (30 g) confirmed that the extent of pulp oxidation, particle size distribution and the presence of frothers affected the flotation response, the findings being in accordance with the postulated model for the hydrophobic species generated on the pentlandite and pyrrhotite surfaces.

Jan 1, 1985

By Don Runge, John T. Zeni

Cuprex Limited is currently developing a small gold mining operation in Central Australia in the Tennant Creek field. In February 1984, the company undertook a feasibility study on the project and operations commenced in August 1984. Ore reserves are located between 230 and 280 metres (755 ft and 919 ft) below surface and ore extraction required the establishment of a shaft network for access, ore hoisting and ventilation. Zeni Drilling Company from West Virginia, U.S.A. was contracted to blind drill two shafts for the project. Blind drilling was selected for various reasons, including timing which related to cost efficiency. The blind drill shaft technique has proved successful in this application and with enthusiastic and innovative support from the mining industry, will prove an efficient and cost effective means of accessing and operating underground mining projects of all sizes in the future.

Jan 1, 1987

By J. Perlacia, J. M. Eguiluz

"INTRODUCTION The Bulk Handling Technology has suffered an important development in the recent years, allowing the use of conveyor belts in the most important and critical applications. As a consequence of this, the reliability and lasting performance of the conveyor belt components is becoming more and more significant, thus the implementation of preventive maintenance programs is a must. The rollers are one of the consumables in the conveyor belts, which have to be changed once arrived to the end of life. The actual ways of detecting this moment always require intensive use of labour and they are not very accurate. Indeed, if the rollers get broken before replacement, the consequences could be very important, generating additional costs and operational losses. The R&D Department of ULMA Conveyor Components, has been working since early 2012 on the development of Monitored Rollers along with a Management Software to provide users the capacity to Manage and Monitor the rollers from its desk, getting continuous online information on the internal temperature of the bearings, on the working status of the rollers as well as the identification of the rollers close to their end of life so that they could be changed during the next maintenance stop of the conveyor belt. In short, a system of Preventive Maintenance for Conveyor Belt Rollers BACKGROUND AND CURRENT STATE The malfunction of a single roller in certain conveyor belts can suppose the standstill of the whole installation until its replacement, due to the risk of greater and more expensive failures like the rip of the belt. In the case of a bulk handling installation where a continuous supply of material is necessary, a bare stop of one hour could entail huge economical losses. What’s more, many conveyor belts are several kilometers length or the access to some parts of them is very complicated. Due to these difficulties the inspection and maintenance operations can become expensive and hard going, with staff going over the whole area checking the correct condition of the conveyor and rollers, which means a dangerous activity. In addition, it’s quite common to find rollers working in very harsh conditions, completely exposed to the elements or working in corrosive closed environments like underground mines. These tough working conditions together with the very demanding features of Bulk Handling sector (high loads, speed, dangerous materials etc.) can bring the unexpected failure of a roller, even being designed to support them. Thus, to have the working conditions of the rollers real time is clearly required, in order to achieve an actual predictive maintenance of the system and avoid fatal failures. Nowadays the most common procedures to identify a broken roller is to hear how it sounds or use thermo-graphic cameras to measure their internal temperature, both of them implying workers inspecting the whole length of the conveyor while the conveyor is running. This means intense use of workmanship and operational safety level reduction."

Jan 1, 2018

By R. J. Sandberg

The Copper Creek area, part of the Bunker Hill District, Pinal County, Arizona, lies within the southwest porphyry copper province of North America at the intersection of a northwest trend and an east-northeast trend of Laramide porphyry copper deposits. The Copper Creek area has been mined and explored for copper and molybdenum since the early 1900?s. The majority of this work focused on the more than 400 surface exposed breccia bodies. In the 1960 to 1970?s deeper drilling discovered a deep porphyry copper-like setting. Redhawk Copper currently has NI 43-101 compliant resources of about 0.652 billion pounds of measured and indicated and 2.745 billion pounds of inferred copper equivalent in breccia hosted and porphyry style deposits. See Figure 1.

Jan 1, 2010

By Kelly F. Bailey

Introduction On June 20, 1986, the Occupational Safety and Health Administration (OSHA) published revised asbestos exposure standards for general industry and construction. The standards reflect OSHA's attempt to adequately control workplace exposures to minerals it considers carcinogenic - minerals capable of causing or contributing to cancer. These standards specifically identify asbestos as: chrysotile, an asbestiform serpentine mineral; and the amphibole minerals amosite, crocidolite, tremolite asbestos, actinolite asbestos, and anthophyllite asbestos. Each of these has a more common nonasbestos mineral analog that exists in nature in a crystalline, blocky shape rather than the hair-like or fibrous shape of asbestos. The mineralogical names for three of these nonasbestos minerals are unique: antigorite for chrysotile, cummingtonite-grunerite for amosite, and riebeckite for crocidolite. The other three nonasbestos analogs do not have unique mineralogical names. They are simply designated as actinolite, tremolite, and anthophyllite without the word asbestos following their names. The 1986 OSHA standards not only cover exposure to the six asbestos minerals, they also cover specifically the nonasbestos forms of actinolite, tremolite, and anthophyllite (AT&A). The new standards regulate these minerals exactly like asbestos (OSHA, 1986). The construction aggregate industry views this as a major problem because these nonasbestos minerals are common amphibole rock-forming minerals in the earth's crust. They exist in small quantities over large areas of the United States (Kuryvial et al., 1974). These minerals, unlike asbestos, are not mined for a specific commercial purpose. They are unavoidable components in much of the aggregate used for construction throughout the US. They are also common in the gangue material of metallic ores. There are areas of the US where amphibole-bearing bed¬rock is common. Not every rock mass in these areas contain amphiboles, however. It does mean, though, that amphiboles are physically compatible with many of the rocks in those areas. And given the correct geochemical conditions, they will be present primarily in the nonasbestiform variety. In addition, these amphiboles will probably exist in the natural drainage system, sand and gravel deposits, stream sediments, lake shores, valley basins, or ordinary beach sand within these areas. There has been little quantification of nonasbestiform AT&A in dusts and soils in the US. This is not surprising since these nonasbestiform minerals are not commercially valuable. However, an example of the pervasive nature of these minerals can be found in a 1981 Geological Society of America publication where about 0.7% tremolite-actinolite was found in the desert dust in and around Tempe, AZ (Pewe, 1981). Since OSHA standards treat these common nonasbestos minerals as carcinogens in the same way as asbestos, large natural areas in the US are implicitly being labeled as hazardous by OSHA. When a substance is identified as a carcinogen, another OSHA standard comes into play, the Hazard Communication standard. There are also right-to-know laws in 9 states that essentially duplicate this federal standard. These standards require that a product containing 0.1% or more of an OSHA-designated carcinogen be labeled as such (OSHA, 1983). This means that much of the stone and sand gravel products occurring naturally and mined in the US could be labeled a carcinogen when, in fact, they are not. The National Stone Association (NSA) and the domestic construction and mining industries believe that OSHA has seriously erred. The NSA has studied the health, mineralogical, technical, economic, and legal basis for OSHA's action. These studies concluded that there is no justification for the agency regulating nonasbestos minerals as if they were asbestos. Health issues The preamble to OSHA's 1986 asbestos standard states that evidence for asbestos-like health effects from exposure to nonasbestiform varieties of AT&A is inconclusive (OSHA, 1986). The fact is, not only are the data inconclusive, they are nonexistent. During 1986-1987, NSA's occupational health and epidemiology consultant, Environmental Health Associates (EHA), reviewed all available health studies related to AT&A. EHA found evidence that malignancies in both experimental animals and humans are associated with the asbestos forms of these minerals. No experimental or epidemiological evidence was found that indicated such pathogenic effects occur from exposure to nonasbestiform varieties of these minerals. There are relatively few scientific studies of the health effects of exposure to nonasbestiform varieties of AT&A. In three different animal studies, exposure to either nonasbestiform tremolite or actinolite did not result in pulmonary fibrosis on in excess tu-

Jan 11, 1988

By D. M. Fritz

Environmental experts face large and rapidly-increasing volumes of raw data obtained from environmental monitoring stations. These professionals must compile and analyze the data in a systematic manner to cost-effectively understand and minimize the impacts of mining. The shift toward desktop computing, combined with the downsizing of company staffs, has now more than ever created a demand for a modern, PC-based application for the storage, retrieval, analysis and presentation of environmental data. This paper discusses the general requirements of such a system, and points out specific ways in which such industry-specific software can provide convenient and useful access to the data. The software used to illustrate these features is the HydroDat program, developed by Western Water Consultants, Inc.

Jan 1, 1996

By P. Bevilacqua, M. C. Williams, T. P. Meloy

We will bet you that, without prior programming within 10 minutes, we can design and simulate a 10,000 unit operation separation circuit. We will even do it at your place. We do it all the time. [ ] There are no tricks; we do it in a spreadsheet. We do it in those user friendly spreadsheet such as Quattro Pro. Spreadsheets must be user friendly. Accountants use them as do managers, business men, lawyers, doctors and salesmen. What these users seldom realize, is how powerful a mathematical tool a spreadsheet is. Among their other capabilities, spreadsheets can do a finite element analysis. That is why they are useful for accounting. That is also why they are more useful to engineers in the mineral industry. Spreadsheets are ideally suited for the engineering problems in the mineral industry. We have used then for solving problems in: a) mine ventilation; b) circuit design and optimization of dense media, flotation and sizing; c) comminution circuit design; d) shaking tables; e) Humphrey spirals; f) sluice ways and channel flow; g) lock particle and liberation problems; h) tunnel and shaft stress problems; i) cascadograph simulation; j) complex heat transfer problems; k) flow in porous media; and sheet flotation (Figure 1). Mineral industry problems presented on or with a spreadsheet are an excellent teaching instrument, problem statement and solution tools and sales devices. Spreadsheets answer easily, quickly and reliably many mineral industry engineering problems. What makes spreadsheets so useful to the mineral industry. The short answer is: they are easy to use; mineral industry problems fit the spreadsheet format. Those reasons are part of the answer. The real answer lies with the structure of the spreadsheet itself. Essentially, a spreadsheet is a "finite element analysis" form of computer software. Many mineral industry problems are readily solved by finite element analysis techniques. While some in the mineral industry may think they have never heard of finite element analysis, most use it weekly if not daily. Any profit and loss statement is essentially a finite element instrument. In fact, any array of numbers where one number is related to another may be construed as a finite element analysis product. Finite element analysis is a common daily activity. To get an appreciation of a finite element analysis, think of a monthly sales forecast for the next year. For each product and for each month, there exists a dollar figure for the forecasted amount of sales. In the forecast statement, for a given product in a given month, there is a "box" where the forecasted figure is presented. The forecast figure in that box was arrived at through some type of formula. The formula probably required some information from other neighboring boxes in the master forecast statement. Voila, one has a finite element analysis. Today the analysis would be done in a spreadsheet. A typical mineral industry problem is ventilation in an underground mine. Think of a rectangular room and pillar mining operation. Each room has air entering at a given pressure and velocity and air leaving at another pressure and velocity. During steady state, the air entering and leaving the room is determined by conditions in the adjacent rooms. One can readily model the room and pillar mine layout in a spreadsheet, and then find the flow in and out of each room at steady state. Change the flow by moving a brattice cloth or blocking off a path way and one gets a new air flow profile. Change the numbers on the spreadsheet that reflect

Jan 1, 1993

By F. Forbes

For many years, the Machinery Division of Dravo Corporation has been designing and constructing bins and hunkers as part of overall plant facilities. We have designed bins to handle a variety of materials including coal, coke, iron ores and concentrates, sintered and pelletized ores, calcined and raw limestone, bentonite, alloys for BOF shops, and even cast iron chips from machining operations. We, along with everyone else in this business, have had our bin problems. The bins either plug, rathole, segregate, wear out, flood the discharge device, or overload it. Surprisingly, sometimes they have worked. As engineers, it has long concerned us that something as important as bin design should be so imprecise and that it has been so conspicuously avoided in research and in literature. In past years, rule-of-thumb design criteria had been to keep the sides of the bins as steep as possible and the outlets of the bin as large as possible. This criteria led to the design of bins with 600 to 700 side slopes and table feeders which were very large. Unfortunately, this meant trying to fit tall, skinny bins into a layout where minimum building height was required for obvious economic reasons. Like everyone else in the industry, we found that this design procedure was expensive and ineffective.

Jan 1, 1968

By F. W. Bond

Predictive ground-water modeling is currently being applied to a wide range of engineering applications. In recent years models have been used to evaluate the effect of large ground-water withdrawals on regional water supplies; subsidence associated with overpumping; siting and design studies for chemical dumps; siting and safety aspects of nuclear waste storage; and heavy metal migration from disposal sites. Similar modeling techniques could be used to analyze water-related problems in the minerals industry such as mine dewatering (both open pit and underground), environmental and pollution control, and process water supply and disposal The objective of this discussion is to describe how ground-water models are being used to assist in the solution of water-related problems outside the industry and to extrapolate that use to mining problems.

Jan 1, 1980

By S. C. Libby

The amount of fine material (minus 60 Tyler mesh) generated during calcination and/or handling of calcined abrasive grade bauxite from Alcoa's operations at Moengo, Suriname, has recently increased relative to past production experience. Bulk samples of raw abrasive grade bauxite from three deposits in the Moengo area have been studied in order to determine the factors controlling the generation of fine material samples from the Jones IC and Tapira deposits, which generate excessive amounts of fine material, have been compared with reference samples from the Begi Gado deposit, which does not generate excessive fine material. Additional type samples of abrasive grade and marginal abrasive grade bauxite from deposits in the Moengo area which represent different bauxite textures found in the Jones IC, Jones I, and Begi Gado deposits have also been studied. Field observations in the Moengo area have indicated that abrasive grade bauxites with a dull, earthy appearance generally do not generate excessive fines. On the other hand, excessive fines are generally associated with coarsely crystalline bauxite in which the gibbsite crystals appear to sparkle in sunlight.

Jan 1, 1980

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