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By Duluth Engineers' Club, Engineers' Club of Northern Minnesota

"Iron ore in Minnesota probably carries a heavier tax burden than any mineral in any other place in the world. The State Tax Commission, created in 1907, originated the system, and with the assistance of the School of Mines is constantly making such adjustments, changes and increases as appear necessary, in order to place mineral reserves on the assessment rolls at their true and full present taxable value. The ore bodies on the Mesabi are so well defined by drilling and underground devel¬opment that it is possible to estimate very exactly the volume on every forty acres of land taken as a unit. This is done by the operating or holding company and reported annually to the Tax Commission, Who check the estimates, having all data, and- proceed to fix the valuation for taxation purposes.The first step is to ascertain a general average selling price in open market, over a period of years ; then the total cost per ton (exclusive of royalty) to produce and market the ore. The difference between the average selling price and producing cost per ton is taken as the future full value per ton. This is then discounted at a rate of interest that represents the present and possible future worth of money, over a period of years that will be required to exhaust the ore body, giving the present full value per ton., Iron ore is taxed at 50 per cent of its full value, while other property is taxed at 33 1/3 per cent and 25 per cent."

Jan 1, 1920

By John W. Rushton

THE PLANNED MAINTENANCE PROGRAM All concentrators should start with a planned maintenance program from day one. Every- body thinks they have a program in place before start-up, but in reality, most have only a fraction of what is needed to avoid the "Post Start-up Disaster" (PSD) - two years for start-up is not that uncommon. An effective program has all of the following: (1) Good people. (2) Area Maintenance. (3) Good PM Checklists. (4) Daily Work Schedules. (5) Written Work Orders. (6) Equipment Histories. (7) Backlog Control. The installation of a workable program takes hard work, talent, and commitment. You have to know what you are doing (hard work will not replace talent). Good People Good people are available in any location if you make the effort. Always check references carefully (both superiors, peers and subordinates). Was the last concentrator they worked at successful? Was it clean? Find out! Success or failure follows people around. I know people who are experts on PSD because they have lived through it three or four times. You need some college trained people with hands-on experience. There are no secrets, you have to make the effort. If you make a mistake in hiring (and you probably will), make the tough decision necessary to rectify it quickly. Area Maintenance Area maintenance refers to organization of supervision such that one person is uniquely accountable for every inch of ground and piece of equipment. Avoid overlapping authority if at all possible. You must have a planner as a staff position. A foreman cannot effectively plan and

Jan 1, 1986

By Robert A. Haney

During the last ten years, longwall mining systems have undergone many changes. Panel widths and lengths have increased. Longwall faces have become more automated. Average production from individual longwall panels has increased from 1,000 to 3,600 tons per shift. To control the dust generation resulting from the higher production, longwall dust control systems have integrated various dust control techniques. Systems designed to control dust generated at the crusher/stageloader, shearer, and supports are common to most longwall faces. A survey was made of the dust controls that are currently in place on all the longwalls in the U.S. This survey addressed the types of controls used to reduce dust generated at the crusher/stageloader, shearer and roof support movement. Additionally, information on face ventilation rates, cutting cycle and level of automation was obtained. The purpose of this paper is to review the dust control practices that have been implemented throughout the United States and to identify those controls that are being used on high production longwall faces. Additionally, a model is used to demonstrate how ventilation and automation affect occupational exposure. Automation of roof support movement can offer some of the greatest reductions in occupational dust exposures. While technically feasible, its full benefit has not been fully realized by the industry. Until technology to fully automate longwall mining systems becomes more reliable, future dust control systems must rely on increased ventilation, application of headgate dust collectors, improved shearer dust controls and improved shield dust suppression systems.

Jan 1, 1995

By S. C. Suboleski

Underground long-range planning and mine design is an iterative process beginning with a specified production level, quality criteria, and geology of the deposit. Given these factors, face equipment is selected, the number of units needed and production per unit are calculated, and the mine infrastructure needs are developed. The scheduling of units then follows, with the design of the various support systems coming next. The support systems needed to maintain production can be grouped as follows: (1) outby haulage of mined material, (2) supply and manpower haulage, (3) ventilation and associated environmental considerations, (4) drainage, fresh water, and related considerations, (5) rock mechanics, and (6) power, supply. Thus, long-range planning may be viewed as a three-tiered structure, with the data on required production, product quality, and geology at the upper level; the development of face production capacity and the scheduling of units sufficient to meet the needs of the first two at the second level; and the development of support operations for the production units at the third level. Changes at any level may affect not only the items on that tier but may also cause a change to the items on the tier above and below. For example, if the rock mechanics data indicate that desired opening sizes will not be stable, then this situation will affect not only the ventilation design but also the production rate and possibly the selection of equipment itself. These, in turn, may affect the scheduling of units and the number of units, ultimately influencing the entire third tier of systems.

Jan 1, 1979

By James J. Brady

The basic story at Bear Swamp was how to excavate an underground chamber 79 feet wide by 227 feet long and 150 feet high, along with the related access, tarbrace, leads, power tunnels and shafts, do it under cost and ahead of schedule and still have just about everybody love you. The isometric sketch of the overall project follows. I won't go into any of the details of the physical scope at this point. Instead, we'll bring out the sizes, grades, particular problems of the different areas as we cover them. First of all, let's establish that Bear Swamp was a Target Estimate - Fee with Incentives type of contract. Gates and Fox's contract was with the project's general contractor, J. A. Jones. We were one of three contractors who submitted proposals and estimates to Jones. After much negotiation and many submittals, Gates and Fox was notified we had been selected to do the underground excavation on April 12, 1971. We had our first people back on site in two days, set up a temporary office, made our first steel order for jumbo erection, pacing our jumbo construction to meet the date when J. A. Jones would have the access portal ready for us. The shops, yards, dry house, compressor building were all erected as sites were designated for our use. At last, on Thursday, June 3, we trimmed the face and moved our 9-machine Euclid jumbo up a hastily constructed haul road and started our portal preparation of the access tunnel.

Jan 1, 1974

By T. P. Lim, A. J. Vivyurka, N. K. Davé

Chemical and radioisotope stratification studies were carried out in an abandoned uranium tailings pile at Elliot Lake, Ontario, Canada. The tailings, with an average thickness of 7 m over an area of 16 hectares, were deposited approximately 20 years ago on a layer of black peaty material which overlays deposits of permeable glaciofluvial sands. Geohydro-chemical investigations of this tailings area have been ongoing since 1978. The radioisotope profile study was conducted on three adjacent sites. Solid core samples, collected with a split spoon sampler at various depths, were analyzed for various chemical and radioisotope constituents. The results indicated by 2 distinct zones of stratification; an upper zone, where the constituents were uniformly distributed, and a lower zone, near the peat-tailing interface, which showed increasing concentration with depth. Within the peat layer, the concentration decreased rapidly with no significant levels of contaminant penetration below the peat layers observed, though the samples were limited. The pH profile showed that the top 5 m of the tailings have been oxidized, the average soil pH in this zone was 3.4 compared to 5 .8 underneath it. The groundwater hydrology of the system was observed to be complex showing downward and lateral flow in the dry season and lateral and upward flow during the spring and periods of heavy rainfall. The results are discussed in terms of a model based on the combined segregation and settling process of the tailings fine fraction, and the geohydro-chemical interaction of the solid and liquid phases.

Jan 1, 1981

By K. L. Kayler

Ball clay production in 1991 amounted to about 800 kt (880,000 st), about the same as in 1990. 1992 estimates show a 5% decrease to 750 kt (827,000 st). This decrease continued a trend of reduced production that began after the peak of 900 kt (1 million st) that occurred in 1988. Use of ball clay in sanitary ware was about 2% less in 1992, although levels of use in floors and wall tile, dinner ware and pottery remained constant. Filler, extender and binder applications continued to be important end uses, accounting for about 17% of total market. Refractory uses maintained their market share of about 17 kt (18,700 st). Use of clay liners in toxic and waste dumps is an application widely found in Germany. However, its use has not been fully exploited in the United States. This could represent an opportunity for domestic clay producers. Tennessee remained the leading source of ball clays. Other producers were Indiana, Kentucky, Mississippi and Texas. Tennessee's production, however, decreased about 3% in tonnage produced and its value dropped from 68% to 65% of total production. The ceramics division of Southern Clay Products, Inc., was bought from LaPorte plc by United Clays of Texas, Inc., a US subsidiary of Watts Blake Bearne & Co. The purchase included ball clay reserves at Troup, TX. The acquisition makes United Clays the second largest ball clay producer in the United Sates. United is also the only company mining clay in Texas. Fire clay production decreased 5%

Jan 1, 1993

By John W. Rold

These encompass all adverse effects of oil shale mining, processing, and ancillary developments on the environment. Specific problems concern: land, vegetation, wildlife, water, air, population growth, aesthetics and public emotion; and fall into four categories of: land, water, air and emotion. Land includes excavations, spent shale disposal, loss of vegetation and impact on wildlife and domestic grazing, plant sites, buildings and roads, necessary urbanization and the total aesthetic or visual Impact. Water considerations are: requirements for Industrial and domestic supplies, adverse effect of underground water on mining, avoidance of pollution or adverse effect on surface or near-surface water, and the utilization or safe disposal of liquids. Air problems include dust, smoke and stack gas, Public emotional problems include reaction to the above problems, and misconceptions of oil shale country and an oil shale Industry. Government and industry are aware of the problems, and are seeking solutions. Last year, the three affected states studied oil shale environmental problems and solution costs. Colorado estimated environmental costs would add approximately 7% to construction and 7% to operation. The report suggested research in: (1) Water availability and impact; (2) Disturbed lands revegetation and rehabilitation, including spent shale; (3) Environmental inventory and impact; and (4) Regional development and land use planning. Governor Love appointed a 47-person committee representing Industry, government and environmentalists to attack the problems. Research pro-posals were prepared to focus on each problem. $715,000 state, federal and industry money is being committed. Results should provide data for industrial solutions and equitable agency administration.

Jan 1, 1972

By S. R. Wardwell, M. J. Robison

INTRODUCTION The first phase of the Los Angeles Metro Rail Project consists of 7.1 km of subway and stations running through downtown Los Angeles from Union Station to MacArthur Park. Contract A146, Tunnels from 5th/HILL Station to 7th/Flower Station, involves tunnel construction through the heart of downtown Los Angeles. The alignment of the tunnels passes beneath twelve buildings, ranging from a 3-story below grade parking structure to numerous 12 to 14 story buildings. The soil along the alignment is alluvium, consisting of silts and clays, clean sands and gravels located above the ground water table. Because of unstable ground conditions, which led to excessive ground losses in several instances, and because of the potential for excessive building settlements, it became necessary to design and perform a program of chemical grouting. The chemical grouting program was designed such that tunneling could proceed on a one shift per day basis, with chemical grounting being performed on the remaining two shifts. Each day 21,000 to 31,000 liters of sodium silicate grout were injected through sleeveport grout pipes installed 18 m deep through the tunnel face. Tunnel advance rates of 12 m per day, 60 m per week, under full chemical grout cover were achieved. The chemical grouting program virtually eliminated both ground loss and settlement and permitted successful excavation of the tunnels. The purpose of this paper is to describe the chemical grouting program used to control ground losses and settlement on Los Angeles Metro Rail Contract A146. The paper begins with a description of

Jan 1, 1991

By Guy T. McBride

Mr. Chairman, Fellow Keynoters, Ladies, and Gentlemen: It is purposed to consider the theme of this meeting, "The 1970's - Pivotal Decade for the Mineral Industries," from the particular -- some would say peculiar -- point of view of one engaged in mineral engineering education, and this coign of vantage prompts the textbookish subtitle, "Problems and Solutions (?) in Undergraduate Mineral Engineering Education." Three interrelated problems, or problem areas, will be presented and discussed, and where solutions seem to be emerging or seem worthy to be suggested, they will be identified. The three problems are: 1. The goals, and therefore the course requirements, of the undergraduate curricula are in question, 2. The unit costs of undergraduate education appear excessive to those who bear the charges, and 3. The social ambience of the day affects for the worse the work attitudes and the career motivation of both prospective and in-course students. The Need. - Any discussion of these problems must bottom upon recognized national needs for minerals and a technologically sound minerals industry staffed by competent engineers, particularly at the exploration, development, and production levels, Fortunately, these needs have been recognized and to some extent quantified, and they are even now under further intensive study by some of the most competent members of our society and profession. The latter reference is, of course, to the current work of the National Commission on Materials Policy (U.S.A.) under the executive directorship of Dr. James Boyd. Predating this, and perhaps to some extent

Jan 1, 1972

By Cyril Heever

ROCKS outcropping in Elandsrand's lease area consist of quartzite, shale and lava of the Pretoria group and are underlain first by 1 300 metres of dolomite and then by the Black Reef series. This in turn rests unconformably on Ventersdorp and Witwatersrand rocks and truncates the basal member of the Ventersdorp Super group, the Ventersdorp Contact Reef (VCR), near the northern boundary of the lease. The Ventersdorp Super group is composed of lava and varies in thickness from nil in the north of the lease area to 1 000 metres in the south. The VCR, less than 100 cm thick, dips 210 to the south east and lies between 1 786 and 3 386 metres below datum. The Oberholzer dyke straddles the north-western corner of the property and separates the dewatered Oberholzer compartment, over which most of Elandsrand lies, from the as yet undewatered Turffontein compartment. As so much of the lease area is covered by thick impermeable rocks, the water-bearing capacity of the underlying dolomite was expected to be low. The man-material (MM) and rock hoisting ventilation (RU) shafts were sited well within and above a gravimetrically determined 200-metre 'safe-limit' contour of the northern slope of the Gatsrand. Two pre-cementstion holes were drilled and the cementation rigs were placed within a 15 metre annulus round each shaft to seal any likely water-bearing pockets in the proximity of the excavation during sinking through the first 300 metres of shales and the surface water-table.

Jan 1, 1981

By A. B. Van Cleave

It was first pointed out in 1934 by Gaudin (1) that the "oily" oxidation product of the alkyl xanthate ion-dialkyl dixanthogen, might be the "active flotation agent" on sulphide minerals and there have been a number of studies supporting this hypothesis (2,3,4). However, all of these studies have relied largely on electrochemical evidence. Galena, being a semiconductor, may be used as an electrode in aqueous solution and it was shown that ethyl xanthate ion does not adsorb with charge transfer in the absence of oxygen unless the potential of the galena surface is above -100 mv versus the hydrogen electrode (H2 E). At this potential the galena surface is slightly hydrophobic but does not become strongly hydrophobic unless the potential is raised to 210 mv (versus H2 E). It is suggested that, at potentials of 210 mv or above, ethyl xanthate ions are oxidised to diethyl dixanthogen and that chemisorption of oxygen raises the galena surface to this potential. On the other hand, examination of xanthated galena surfaces by chemical or physical methods (5,6,7) has failed to detect dixanthogen and it has been shown that dixanthogen may be reduced to lead xanthate at a lead sulphide surface. (5,8)*. It was suggested by Leja and Poling (5) that, as dixanthogen is a neutral molecule it would not be repelled by the negatively charged galena surface so that the adsorption was envisaged as taking place through homogeneous oxidation of the xanthate ion to dixanthogen, adsorption and reduction of the dixanthogen to a chemisorbed lead xanthate species. In paper I of this series (11) it was shown that the thiosulphate ion, which forms on galena surfaces in slurries at the pH normally used for flotation, will reduce dixanthogen. There is, therefore, the impasse that the electrochemical evidence requires that xanthate ion be oxidised to dixanthogen at the galena surface while the chemical evidence shows that the reverse reaction takes place.

Jan 1, 1973

By J. R. Parry

Over the past several years, computerized financial models have been an important part of Newmont's strategic planning process. Two applications will be discussed in this paper: a general purpose financial model of Newmont, and a detailed operational/financial model of Magma Copper Company. Newmont?s general purpose financial model was developed using Lotus 1-2-3. It was designed to aid management in assessing the financial consequences of investment and financing decisions associated with long-term strategic planning by simulating the consolidated effect from individual transactions. Not only is the model capable of assessing the sensitivity of specific decisions to changes in the external economic environment (i. e., commodity prices, interest rates, inflation and exchange rates), it can also evaluate the effect from operating and financial decisions, including changing production levels and cost structures at individual operating units as well as simulating several types of transactions, including equity and debt issues, acquisitions and divestitures. The analysis of Magma Copper Company required the development of a detailed operating and financial model of the Company. The model was developed using IFPS in the corporation?s UNISYS (then Burroughs) B7900 mainframe computer and included separate pro forma financial statements for each of San Manuel-Pinto Valley's mines and concentrators, as well as Magma's smelting and refining operations. The outcome of this analysis was the decision to merge Magma Copper and Pinto Valley Copper Corporation, and to recapitalize the new corporation in order to provide funds for a retrofit and expansion of its Arizona smelter and expansions of its refinery and SXEW facilities.

Jan 1, 1989

By Robert J. Wise

The mine plan for an underground longwall mine plan usually requires a longwall panel conveyor that begins operation at its maximum length and gradually shortens over the life of the panel. Current mine plans around the United States require initial panel conveyor lengths of up to 4500 m (15,000 ft) and capacities of up to 3.2 kt/h (3500 stph). Because these conveyors are constantly being moved from panel to panel, their components must be as compact and light as possible, and the design must be flexible enough to be modified as new terrain and conditions are met. In the past, when drive horsepowers or belt tensions were exceeded due to conveyor length, a new flight would be added, including additional belt storage units. In some cases, this led to as many as three flights installed in a single longwall panel. As the longwall retreated through each flight, mining was required to stop during removal of the drives and storage units. This sometimes meant several days of lost production. Intermediate drive technology was developed to eliminate this excessive downtime and still keep conveyor belts, motors, pulleys and other components as small as possible. With intermediate drives placed along the carrying side of the conveyor, belt and motor sizes are kept as small as possible, and only one storage unit is needed. Most importantly, as the longwall retreats through a booster drive station, it can generally be removed in a regular downtime slot and no additional production time is lost.

Jan 1, 1993

By Pierre Ollivier, Dominique Morin

A general study of gold refractory arsenopyrite pyrite concentrate bioleaching has been carried out including two continuous bioleach testworks at different sizes, namely one at a laboratory scale with a 100 1 unit at a 2 kg/d dry solid flowrate and the other at a pilot scale at a 100 kg/d dry solid flowrate. Both tests show a 80% bioleaching of arsenopyrite in about four days of treatment and with the same kinetic. Pyrrhotite is attacked at the earlier stage of the bioleaching but pyrite remains unaffected. The weak potential of oxidation associated with the decomposition of arsenopyrite and the abundance of arsenite leads to a high grade of elemental sulfur in the bioresidue which consumes the major part of the cyanide during the gold recovery, furthermore, the arsenite and ferrous produced in solution have to he oxidized to obtain a stable precipitate in the waste products and as outlined in previous works of other authors on this subject the addition of iron to obtain a Fe/As molar ratio at least above 3 is necessary. The agitation equipment used in the pilot unit allowed an optimisation study calculation for scaling-up the design and power requirements of an industrial installation, For the pretreatment of a gold refractory As high-graded concentrate the reagent cost has the greatest part in the operating cost of the biooxidation step due to the necessary retreatment of the biosolution, In that conditions the power cost is quite marginal, actually it is significant for the treatment of pure pyrite.

Jan 1, 1990

By G. Bräuner

The methods of burst control treated in the authors' very informative paper have been applied in the Ruhr Coalfield, Germany, for more than 20 years and have proved to be highly effective. It might be interesting here to mention a few experiences: • The symptoms of critical stresses when drilling with small diameters ("test drilling") are essentially the same as described. However, we consider the situation safe if these symptoms occur beyond a certain distance ahead of the face. • That safety distance equals three times the seam thickness plus the daily advance. It is the total seam thickness that counts, not merely the mined portion. • Critical stresses within the safety distance are dissolved by so-called destressing measures: drilling with heavier equip¬ment, blasting, or water infusion. • To avoid bump initiation, the destressing operations should begin at the sides of the stressed zone rather than in the middle. • As to water injection, there are two different principles. If the situation is critical already, high pressures are applied for hydraulic fracturing. If the stresses still allow to drill deep holes, the fluid pressure is kept low and acts for a longer time. This is to make the coal break successively instead of violently - a long-term precaution. • When the stresses are very high, destressing is the most appropriate means. We mostly drill with 95 mm-diam (3.7 in. - diam). The techniques in detail are somewhat complex and sub¬ject to modifications. But the general idea is to accomplish burst prevention by controlling the potential burst situations.

Jan 1, 1989

By G. Bräuner

The methods of burst control treated in the authors' very informative paper have been applied in the Ruhr Coalfield, Germany, for more than 20 years and have proved to be highly effective. It might be interesting here to mention a few experiences: The symptoms of critical stresses when drilling with small diameters ("test drilling") are essentially the same as described. However, we consider the situation safe if these symptoms occur beyond a certain distance ahead of the face. That safety distance equals three times the seam thickness plus the daily advance. It is the total seam thickness that counts, not merely the mined portion. Critical stresses within the safety distance are dissolved by so-called destressing measures: drilling with heavier equipment, blasting, or water infusion. To avoid bump initiation, the destressing operations should begin at the sides of the stressed zone rather than in the middle. As to water injection, there are two different principles. If the situation is critical already, high pressures are applied for hydraulic fracturing. If the stresses still allow to drill deep holes, the fluid pressure is kept low and acts for a longer time. This is to make the coal break successively instead of violently - a long-term precaution. When the stresses are very high, destressing is the most appropriate means. We mostly drill with 95 mm-diam (3.7 in.- diam). The techniques in detail are somewhat complex and subject to modifications. But the general idea is to accomplish burst prevention by controlling the potential burst situations.

Jan 1, 1990

By Douglas G. Hubert

To put coal in its proper perspective as a source of energy for electric power production, we must first compare it to other energy sources. A report of the Atomic Industrial Forum dated February 1958 records a number of authoritative though widely varying predictions. The most optimistic of these states that by 1968 there will be a total U.S. capacity of about 6000 megawatts of nuclear power, if growth continues at the present rate. Other sources indicate over 200,000 megawatts of total electrical capacity in utility plants by 1968. This is only 3% nuclear. Therefore, 97% of our total power production will be from non-nuclear energy. Fig. 1 shows the distribution of energy sources of electric utility product- ion in the U.S. as reported by the Federal Power Commission in 1954. Note that less than one quarter of the total is hydro and about one half of the total is coal. For 1957, the Edison Electric Institute reports that of the total steam- electric generation in the U. S., 68.6% was by coal, 7.9% was by oil and 23.5% was by gas. This is an increase for coal and a decrease for oil and gas in those three years. Thus we can conclude that two-thirds of the steam-electric power in the U. S. is now generated by coal. Fig. 2 shows the major markets for coal for 1947 vs 1957. The greatest in- crease has been in the electric utility market, where it has more than doubled in the ten years. One-third of the total coal produced goes to the utilities which now represent coal?s major market. Utilities used 160 million tons of coal in 1957, and the estimated quantity for 1967 is 275 million tons, and for 1977 is 525 million tons. It is predicted that 85% of steam-electric power will be generated by coal in 1975.

Jan 1, 1959

By S. Tavani, R. E. Browner, R. Dunne

Lead is used in CIP/CIL circuit to increase the leaching rate of gold from ores. At least four mechanisms have been proposed for the action of lead in gold leaching circuits: (I) precipitation of sulphides as highly insoluble lead sulphides preventing consumption of cyanide and oxygen; (2) su,face reaction on sulphide particles forming an insoluble lead sulphide layer peventing dissolution of those sulphides; ( 3) precipitation of lead sulphide, which undergoes further oxidation to soluble lead sulphate recycling the lead to solution,· ( 4) contact reduction of lead onto the gold szaface which then acts as a secondary oxidising agent. Rotating disc studies using a pure gold disc show that small amounts (5ppm) of sulphide ions are sufficient to significantly reduce the leaching rate of gold. Lead increased the leaching rate at small concentrations but at higher levels decreased the rate of leaching. The detrimental effects of lead were only found for a pure solution when leaching the gold disc. Ores mediate the amount of lead available by ads01ption/reaction, thus, reduced leaching rates from excess lead are not serious even when 500ppm of lead ions are added to the sluny. The detrimental effects of sulphide ions could be countered by lead addition during the leaching process. A penalty, in the form of reduced leaching rate, will occur the longer lead addition is delayed. A time lag was noted between the addition of lead and the increased leaching rate when a large concentration of sulphide ions was present.

Jan 1, 2000

By B. N. Everett

The growing role of Colombia as a major supplier of internationally traded steam coal has been widely discussed in the industry. Although Colombian coal has been produced and exported in small quantities for a number of years, Colombia's position as a major coal exporter began in earnest in 1985 with the first commercial exports from the Cerrejon North Block Project. By way of background: ? The mine is located on the Guajira peninsula in Northeast Colombia, about 90 miles from the coast, as shown in Figure 1. ? In addition to the mine itself, the project involves construction of a dedicated railroad and port, which form a modern, efficient and integrated system. ? The Project is embodied in a 50/50 Association Contract between International Colombia Resources (Intercor), a wholly owned subsidiary of Exxon, and Carbocol, the Colombian state coal company. Intercor and Carbocol share investment and operating expenses equally and Intercor has the additional responsibility of managing operations on behalf of both partners. Each partner is entitled to 50% of the coal produced, and each markets its share separately. ? The project is a multi-seam, truck and shovel operation, based on large reserves (2-3 billion tonnes') of high quality bituminous coal. ? Exports began in the first quarter of 1985 at modest levels through what we call Early Coal Facilities, designed and constructed apart from the permanent coal handling system. ? Production will increase rapidly in each of the next few years, reaching the design capacity of 15 Mt per year in 1939. Based on available resources, however, the resource will support expansion, and continued growth n production into the 1990s appears feasible.

Jan 1, 1986