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In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

By C. Gerow

THIS paper is entitled "Some" problems, rather than "The" problems, met in selling coal, since the problems to be met in selling any commodity have to deal with an infinite number of circumstances and conditions. These are believed to be more varied in the case of coal than probably any other commodity. This is due, perhaps, to the fact that coal has been one of the basic materials in the guiding of industrial and national achievement for the past two hundred years. During this time its use has developed from a most haphazard one to uses involving all modern scientific methods, which, rather than simplifying matters as regards the marketing of coal, have added many fresh problems, and these vary according to the particular market served. Since the concern of this paper is primarily the selling of Nova Scotia coal, it is proposed to deal chiefly with some of the specific conditions met in the markets presently served by this coal. For the purpose of discussion, these markets may be considered as divided into three main groups, namely, the Maritime market, the Quebec market, and the Ontario market. THE MARITIME MARKET First of all, let us consider the Maritime market. This is a market which has been regularly served by Nova Scotia coal since coal mining became the first industry in Cape Breton, slightly over one hundred years ago. Conditions as applying to the use of coal have naturally tended to adjust themselves to the characteristics of the coal most readily available, and, therefore, marketing problems are fewer in the Maritimes than in districts where many coals of varied characteristics are offered. Up to recent years, the problems involved were chiefly those of providing satisfactory service insofar as de-liveries were concerned. However, with the speeding-up of manufacturing processes and the necessity of reducing costs to a minimum, users of coal have become interested in obtaining coal that will give the most economical service. It is, therefore, now of importance that the salesman should have full knowledge of the particular conditions applicable to each customer's use in order to deal to the best advantage.

Jan 1, 1936

By Thomas D. Kaufmann

Whether pursuing hedging or speculative strategies, gold miners can increase sales revenues 1 % to 6% by constantly pricing production forward. Unlike other commodities, gold futures prices are consistently higher than spot prices. A Colorado School of Mines study showed theoretically and empirically that in the 15 years since the price of gold was released from government control, the forward price for gold has been higher than the current price almost 100% of the time. The reason why Metal traders know that holders of metal earn a bonus selling forward when the metal is in "contango." "Contango" is a mysterious word that crept into the trading vocabulary a century ago. It designates a situation when the price of a metal on the futures markets is higher than the price in the immediate or spot market. If the spectrum of spot and futures prices remains static over time, the forward seller who has contracted at a higher than spot price can make a profit equal to the contango by redeeming his commitment at the lower spot price when the contract matures. Consequently, when a seller in a contango market hedges, he makes a profit on the transaction in addition to avoiding a price change risk. On the other hand, buyers of the metal who hedge in a contango situation will sustain a loss equal to the contango. Producers of gold, however, are sellers of gold. For most metals and oil, there is no inherent reason why futures prices should be higher than present prices. Buyers and sellers decide that the price of the commodity will be lower or higher than present values for a variety of reasons.

Jan 1, 1991

By William K. Burriss

Computer technology was applied to solve three problems in the selling of certain industrial minerals to the glass and foundry industries. The computer solutions provide for better service to customers and have helped increase sales. II. Summary Electronic data processing techniques were applied: 1. To automatically and continuously "trace" rail car shipments of bentonite. 2. To aid our sales people in recommending to glass plant purchasing agents which of several possible feldspathic materials is the best value at any of about 100 glass plants and to give guidance on the amount of value difference. 3. To help in locating plant sites for three blending or pre-mixing stations to serve the foundry industry at minimum cost and with maximum tonnage and maximum profitability.

Jan 1, 1968

By John R. Bogert

The title of this session is "Wall Street Looks at the Mining Industry," and I am going to attempt to answer the question: Shouldn't Mining Stocks Sell at Higher Price Levels? Or, What Does Wall Street See When Looking at the Mining Industry? Well, it sees a capital intensive business, a technical industry, and a growing industry becoming more vertically integrated. But, at the same time, Wall Street sees a cyclical industry, a fragmented industry of erratic earnings, spotty public relations, a feast-or-famine business where the public usually does not differentiate between coal mining or metal mining, and does not appreciate either the risks or the rewards. As a result, mining stocks generally sell at relatively low price learnings ratios in comparison to other industrial groups. This PIE ratio, the current market price of the capital stock divided by annual earnings per share, is probably the most popular index of a stock's value. The average of the price/ earnings ratios of the 30 stocks comprising the Dow Jones Industrial Average is over 14. This diverse group of stocks is widely regarded as being a cross-section and representative of the industrial companies listed on the New York Stock Exchange. However, in comparison to 14, Asarco and Kennecott shares are currently available for about 8 times annual earnings. Even discounting earnings from South America, the stock of these two companies sells at only 10 times earnings. Of course, Peruvian politics is currently preventing Cerro shares from selling above 6 times earnings, and Chilean politics keeps Anaconda shares at a PIE multiple of 7. However, even in better times, these companies rarely sell above 10 times earnings. American Metal Climax and Newmont sell at only 11 times earnings as does Phelps Dodge and St. Joseph Lead. Few mining companies then have what can be considered a high PIE ratio-a figure higher than

Jan 1, 1970

This study estimates costs of producing bituminous coal and lignite by strip-mining methods in 12 hypothetical mines. Basic costs are developed by geographic area, rank of coal, and output capacity. Seam thickness and depth and type of overburden are considered typical for the area in which the hypothetical mine would be located. The cost analyses are based on the use of new equipment, the prevailing union wage scales, and the payment of all miscellaneous costs including royalties, contributions to the miners' welfare fund, and license and permit fees. All model mines are considered to have a life span of 20 years. Capital costs of bituminous strip mines with a capacity of 1 million tons per year range from $12.7 million in the Appalachian region to $16.0 million in the Interior province. The corresponding selling price, assuming a discounted cash flow return of 12 percent on investment, is $5.40 and $6.95 per ton, respectively. For bituminous coal strip mines producing 3 million tons annually, a capital investment of $24.9 million will render a selling price of, $3.46 per ton in the Interior province, whereas a similar mine in the Appalachian region requires a capital investment of $28.0 million to produce coal selling for $4.01 per ton. Subbituminous strip mines of 5 million tons of output per year range in capital costs from $28.7 million in the Southwest to $13.9 million in Wyoming and Montana. Coal produced in the Southwest would sell for $3.03 per ton, while coal from Wyoming and Montana would sell for $1.83 and $1.64 per ton, respectively. The capital costs for the strip mining of lignite range from $6.4 million for an output capacity of 1 million tons annually to $20.7 million for an annual capacity of 5 million tons. The corresponding selling prices of $3.01 and $2.12 per ton, respectively, Indicate the advantages of a large-capacity strip mine.

Jan 1, 1972

By H. L. Monro

CONTRIBUTION BYP.J.D.LLOYD The thought-provoking paper by Monro deserves serious consideration. If he is correct, the practice of selling gold forward should cease forthwith. However, similar arguments may well be advanced against the selling forward of many other commodities, and this runs counter to the success of futures markets worldwide. If, indeed, the practice were basically flawed, then such markets should long since have failed.

Jan 1, 1992

By Raja P. Upadhyay

An evaluation of the economics of mining the deep, thick oil shale deposits of the central portion of the Piceance Creek basin, Colorado, U.S.A. is presented in this paper. For the analysis, a modified large scale underground mining system developed by Cameron Engineers, Inc. and the Gas Combustion retorting process developed by the U.S. Bureau of Mines were used to determine capital investment and annual operating costs. A modified risk analysis computer program was then used to calculate DCFROI’s for various grades of oil shale and selling prices of partially refined shale oil. Sensitivity analyses were performed to quantify the affect of bonus bid payments, operating costs, capital investment, and all costs on DCFROI. In addition, a probabilistic evaluation was made to determine the risk involved in obtaining desired rates of return. Results of the economic evaluation indicate that for current selling prices of crude oil a high risk is involved in obtaining a DCFROI of 15%, unless only higher grades of oil shale are mined. However, mining only the higher grade oil shales, 125 l/mt (30 gpt) and above, would effectively reduce the potentially mineable resources by 90%. Risk can also be reduced through higher selling prices of shale oil. Sensitivity analyses indicate that the capital investment has a three times greater effect on required selling price than total operating costs.

Jan 1, 1977

By F. F. Aplan

Pollution control will be of utmost importance in the 1970's. In this area, the mineral process engineer has a special competence to understand and remedy many pollution situations. There is an old adage that goes, "Build a better mouse- trap and the world will beat a path to your door." Would that it were so, but the reality of the situation is such that, just as a supplier must sell his machine, a professional man must sell his competence. It is a sad but true fact that mineral processing engineers have not done a very good job in selling their extensive competence in the control of a broad range of pollution problems. Recently one of our students visited a paper pulp mill where he was shown a foam fractionator used to remove paper pulp fibers from plant discharge waters. "Foam fractionator hell, that's a flotation cell!'' was his comment. Ah so, it would appear that large numbers of technical people consider themselves experts on "foam fractionation" Or is it that we have been very remiss in demonstrating the usefulness of our equipment and processes and our professional competence to solve, these pollution problems?

Jan 1, 1970

By Felicia F. Peng

An economic analysis for evaluating coal preparation plants in the Appalachian Region is presented. A complete coal preparation plant which includes multi-streams and/or multi-stages coal cleaning circuits, complete closed water circuits, environmentally acceptable refuse disposal and reclamation systems is used to determine the capital and operating costs. The plant is capable of producing metallurgical grade clean coal or deep cleaned steam grade coal for future power generating plants use. Utilizing a profit maximization as a decision criterion, an optimal yield, and optimal coal clean¬ing circuits, closed water circuits, and disposal and reclamation systems for a given coal characteristic may be selected among the process alternatives by using a process simulation-economic model of the coal preparation plant. A deterministic analysis is used to calculate the discounted-cash-flow interest rate of return (DCFIROR) and project the selling prices, and determine the Return on Investment (ROI) for the cases of 32.65% and 52.74% plant utilization with producing two cleaned products. Sensitivity analyses are performed to quantify the effect of total capital investment, operating cost, run-of-mine cost and yield on an economic criterion-ROI and selling prices. A probabilistic evaluation using the Monte Carlo simulation technique is further made to quantify the risk involved in obtaining the desired profit levels. The results of the economic analysis for a given coal preparation plant configuration and characteristics of raw coal indicates that the selling prices of producing two cleaned products are greatly affected by the change in percent of plant utilization (production schedule), yield, and run-of-mine cost, and total capital cost. The sensitivity analysis also shows that the total capital investments has a three times greater effect on required selling prices than operating costs. The risk analysis shown that the overall economics look very attractive with current coal sale prices and 52.74% plant utilization.

Jan 1, 1979

By S. H. Ash

lowest fatal injury rate in history conferences stress selling worker on safety international safety conference beneficial

Jan 2, 1951

By John R. Duda

The Bureau of Mines is developing estimates of capital investment, operating cost, and selling price for underground mines producing bituminous coal by various mining methods. This study estimates the required capital investment, operating costs, and selling prices for two hypothetical mines designed to produce 1.3 and 2.6 million tons per year (MM tpy)3 by using a longwall system in conjunction with a continuous-mining system. The coal properties being mined are assumed capable of sustaining a 20-year production period. Wages and union welfare payments used in this study are those in effect as of December 6, 1975, as set forth under the National Bituminous Coal Wage Agreement of 1974. Costs of materials and equipment are based on January 1976 indexes. Initial capital investment is $34.6 million for the 1.3-MM-tpy mine and $63.5 million for the 2.6-MM-tpy mine. Capital requirements, including deferred investments, were estimated to be $50.8 and $92.2 million, respectively. These figures translate into total capital investments of $38.51 and $34.91 per ton of annual production. Assuming a desired 15-percent discounted cash flow (DCF) rate of return, with Federal income taxes at 50 percent, the required selling prices would be $13.41 and $12.27 per ton for the 1.3- and 2.6 -MM- tpy mines.

Jan 1, 1976

By John R. Duda

The Bureau of Mines is developing estimates of capital investment, operating cost, and selling price for underground mines producing bituminous coal by various mining methods. This study estimates the required capital investment, operating costs, and selling prices for two hypothetical mines designed to produce 1.5 and 3 million tons per year (MM tpy)3 by using a longwall system in conjunction with a continuous-mining system. The coal properties being mined are assumed capable of sustaining a 20-year product Lon period. Wages and union welfare payments used in this study are those in effect as of December 6, 1975, as set forth under the National Bituminous Coal Wage Agreement of 1974. Costs of materials and equipment are based on January 1976 Indexes. Initial capital investment is $33.8 million for the 1.5-MM-tpy mine and $61 million for the 3-MM-tpy mine. Capital requirements, including deferred investments, were estimated to be $52.5 and $94.2 million, respectively. These figures translate into total capital investments of $34.87 and $31.31 per ton of annual production. Assuming a desired 15-percent discounted cash flow rate of return, with Federal income taxes at 50 percent, the required selling prices would be $12.06 and $10.94 per ton for the 1.5- and 3-MM-tpy mines.

Jan 1, 1976

By John D. Kinton

A patent is a right granted by the government to exclude others from making, using, selling, offering to sell, or importing a claimed invention. Once the right is granted, the patentee may use the U.S. Federal Courts to enforce that right. Reading a patent from a litigation perspective is quite different than reading it from a technical perspective. The Judge's interpretation of the claims will affect their scope, and likely the ultimate outcome of a patent case. Additionally, the patent right can be challenged. If done successfully, the patent can be rendered invalid or unenforceable. The likelihood of success, and well as the achievement of other litigation goals is often influenced by the forum where the litigation is initiated. Finally, patent litigation costs are significant, and will weigh heavily in the decision to file (or fight) a patent lawsuit.

Jan 1, 2006

By J. Rabe

Tasked with developing a flow sheet for a new resource, one typically turns the experts for help. The advice of an expert can be invaluable in reducing the time and costs associated with characterizing an ore (not to mention extracting maximum information from limited samples). While guiding and optimizing a metallurgical concept study requires a certain skill set, selling a project is something different. The metallurgical specialist is usually not responsible for sharing the results of investigations with potential investors. However, the person responsible for selling the project can ensure that a metallurgical concept study is conducted thoroughly and responsibly without having the ability to do the work, while being sufficiently familiar with the metallurgical aspects to authoritatively sell the project. The process of identifying suitable process routes through to constructing a concept flow sheet and mass balance is discussed as a basic example. From basic mineralogical information and a thorough literature survey, the most likely beneficiation routes can be identified and targeted testing conducted. The final top size will depend on the required product properties (mainly grade), the selected beneficiation technology, and the ore?s liberation properties. Once the required top size has been identified, comminution options can be evaluated. Once again, literature surveys can be used to supplement concept-level comminution property information, and select possible equipment and circuit configurations. Marketing, material handling, and logistics-related information can be used to determine required dewatering technologies. At this stage, enough information is available to develop a concept mass balance and conduct basic equipment sizing..

Jan 1, 2014

By J. R. Thoenen

Profits in the crushed-stone industry, as in any other, represent the difference between selling price and production cost. When consumer demand increases rapidly, as occurred in the crushed-stone industry from 1918 to 1927, selling prices tend to rise. Cost of production usually rises, also, owing to the expense of expanding facilities, searching for and developing new quarries, and purchasing, installing, and operating new equipment. Frequently, also, the inattention of managements to the details of operating costs is responsible for their increase. This is not due to negligence but rather to the necessity of confining attention to the problems involved in producing material to supply orders. When market conditions change and consumer demand becomes stabilized or contracts, the producer's attention usually is directed to assuring the orders necessary to keep his enlarged facilities busy. Hence, competition increases and soiling prices decline.

Jan 1, 1939

By Sidney Katell

This Bureau of Mines study estimates capital investment, operating costs, and selling prices for three underground bituminous mines producing coal with annual production ranging from 1.03 to 3.09 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of November 12, 1973, under the Bituminous Wage Agreement of 1971, and costs for material and equipment are based on 1973 indexes. Initial capital investment ranges from $12,938,200 for the 1.03-million-ton-per-year (MJ.Vl tpy) mine to $31,435,500 for the 3.09 MM tpy mine. Total capital investment ranges from $21,607,200 to $51,982,000 for the same mines. Corresponding selling prices for the coal range from $9.11 to $8.06 per ton, assuming a 12-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1974

By Sidney Katell

This study estimates capital investment, operating costs, and selling prices for four underground bituminous mines producing coal with annual production ranging from 1.06 to 4.99 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of November 12, 1973, under the Bituminous Wage Agreement of 1971, and costs for material and equipment are based on 1973 indexes. Initial capital investment ranges from $12,540,700 for the 1.06-million-ton-per-year (MM tpy) mine to $44,720,500 for the 4.99 MM tpy mine. Total capital investment ranges from $21,850,700 to $75,693,500 for the same mines. Corresponding selling prices for the coal range from $8.76 to $7.53 per ton, assuming a 12-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1974

By Sidney Katell

This study estimates capital investment, operating costs, and selling prices for four underground bituminous mines producing coal with annual production ranging from 1.06 to 4.99 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes. Initial capital investment ranges from $23,629,500 for the 1; 06- million-ton-per-year (MM tpy) mine to $79,907,500 for the 4.99-MM-tpy mine. Total capital investment ranges from $35,336,500 to $1 18,863,500 for the same mines. Corresponding selling prices for the coal range from $13.57 to $11.36 per ton, assuming a 15-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1975

By Sidney Katell

This Bureau of Mines study estimates capital investment, operating costs, and selling prices for three underground bituminous mines producing coal with annual production ranging from 1.03 to 3.09 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes Initial capital investment ranges from $26,498,500 for the 1.03- million-ton-per-year (MM tpy) mine to $67,173,300 for the 3.09-MM-tpy mine. Total capital investment ranges from $37,437,500 to $92,984,300 for the same mines. Corresponding selling prices for the coal range from $14.83 to $13.26 per ton, assuming a 15-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1975