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For the third successive year it appears that demand for platinum will exceed supplies of newly-mined metal, forecasts Johnson Matthey in its "Platinum 1987 Interim Review." Based on data available at the end of August 1987, Johnson Matthey estimates that western world demand for platinum could exceed 93t (3 million oz) for the first time ever in 1987. Given a likely increase in demand of 4.3t to around 94t (140,000 oz to around 3.02 million oz), up by about 5% over 1986, there would be a 1.8- to 2.2-t (60,000- to 70,000-oz) shortfall in 1987 supply. South African mines enjoying undisrupted production last year after strikes affected Impala's output in 1986. The rate of increases in western world supplies, though, has probably not kept pace with the growth in demand. A downturn in US demand for platinum was counterbalanced by substantially increased purchases from Japanese and Western European consumers of the metal. Total imports of platinum into Japan in 1987 may have reached a record level of 45t (1.45 million oz). The largest source of demand for platinum remains its use in autocatalysts US and Japanese auto manufacturers reduced their platinum purchases in the wake of falling car production. Therefore, a small decline in overall 1987 sales of perhaps 780 kt (25,000 oz) was expected in 1987. Western European demand, however, rose strongly as a result of increased output. The spread of exhaust emission control regulations has sharply boosted the number of cars equipped with three-way catalysts containing platinum and rhodium. Western European auto makers probably needed 5.6t (180,000 oz) of platinum last year, a 50% increase over 1986. The jewelry industry, the second largest user of platinum, increased its offtake of platinum in 1987. Japan, the key to the jewelry industry's consumption of platinum, could absorb 24.8 to 26.4 (800,000 to 850,000 oz) in 1987, compared with 23t (740,000 oz) in 1986. Platinum has wide and diverse applications in industry. Other major users are the chemical, glass, electronics and petroleum industries. They were expected to increase their aggregate demand by about 1.8t (60,000 oz), or 11% in 1987. Investment demand for small platinum bars and coins of up to 311g (10 oz) dropped back in relatively inhospitable conditions. This, after rapid increases in recent years and a surge in US demand in 1986. However, Japanese investors purchasing bars weighing 500g or 1 kg (16 to 32 oz), and considered more speculative, recovered last year. Over the first eight months of 1987, platinum performed strongly on the open market with average prices well up from 1986 in dollar terms. But the increase was less marked where measured in sterling or yen. Platinum ad¬vanced by $3.70/g ($115 per oz) between Jan. 1 and mid-September with the average price having been surpassed only in the heady days of 1980. Johnson Matthey believes that supply and demand appear likely to keep more or less in step on a gently rising path. The recent open market volatility will continue with prices fluctuating widely over short periods. Writing in mid-September, and basing its view on the tangible evidence of platinum's price fall since the review was written, the company's assessment of price prospects is unchanged. Demand for platinum remains strong all-round. In October, imports of platinum into Japan were exceptionally high. And in the US and Japan there was a marked resurgence of demand from private investors. Although market sentiment may have been influenced in part by the news of several potential new platinum mines in South Africa, the full effects of these prospects on supply, even if they were all to materialize, would not be felt before the early-mid 1990s, Johnson Matthey said. According to the review, no radical change in platinum supplies is discernible in the near-term. Incremental growth from South Africa can be expected as the major producers continue to make the most of their existing resources. The Soviet Union may be keener to sell than it appeared earlier in 1987, especially if prices hold up, but a substantial increase is improbable. Canadian supplies are not capable of much variation from present levels. The palladium-rich Stillwater mine will make a modest contribution. Referring to the investment market, Johnson Matthey concluded that despite this year's reduction in sales of small-denomination investment products, platinum does appear to have established itself with private investors. Bearing in mind how business multiplied in comparatively unfavorable conditions before 1986, it is reasonable to look for a resumption of growth once the climate improves.

Jan 2, 1988

By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By R. Bruce Tippin

Background Iron ore is the No. 1 metal mining industry in the U.S. with dollar value of $2.3 billion in 1984 (U.S.B.M Mineral Commodity Sunnnaries , 1985). However, during the past decade this nation's iron ore industry has been subjected to a major market depression and a correspondingly downward adjustment in output. The recent trend in the curtailment of iron ore production traces a slow-down of the country's steel industry. Both pig iron and steel production have decreased significantly over the past several years. These trends are shown in Figure 1 from data collected by the federal Bureau of Mines (U.S.B.M. Mineral Commodity Summaries, 1985; U.S.B.M. Mineral Industry Surveys 1986). The industry is presently operating at less than 60% of its annual capacity. The domestic steel industry has been forced by reduced profits or losses to close facilities, curtail operations and restructure the financial status of several corporations. Companies have been sold or are trying to sell selected properties to improve their financial circumstances. Even with such actions, many of the steel companies are in very serious straits, including the seventh largest steel company, LTV, which has filed for bankruptcy. Many of the major steel companies have financial interests in iron ore mining and thus their adverse economic conditions directly reflect those operations. Several iron ore producers have been shut down including Reserve Mining Company in May, 1986 and Butler Taconite in June, 1985. The latter recently filed for bankruptcy under Chapter 11. A1 so in mid-1986, U.S. Steel Corporation, owner of the Minntac mine and iron ore processing plant, underwent corporate restructuring. The effect on their Minnesota plant is not known at this time. An excellent summary of the interrelationship of the iron ore companies and the steel producers has been provided by Skillings (1986), and an analysis of the iron ore situation was given by Robert F. Anderson, CEO of M. A. Hanna Company, in his keynote address at the 1986 University of Minnesota Mining Symposium (Anderson, 1986). Steel imports to the United States decreased slightly in 1985 because of import restrictions, but the long-term import situation remains dim and uncertain. As shown in Figure 2, the imports averaged about 25% in 1985, and the preliminary indications are that this figure could be as high as 30% when the final 1986 information is collected by the U.S. Bureau of Mines. At best, the industry can only hope for imports to stabilize at a constant level in the near future. Although the tonnage is small, the quantity of U.S. export steel has fallen over 50%. With many other materials replacing steel , the projected demand through 1990 is expected to increase only about 1% per year. Consequently, 1986 U.S. iron ore production will probably be 15% lower than in 1985. The 41 mil lion tons of iron ore production expected in 1986 represents only 53% of the industrial capacity, which is about 74.5 mil lion tons. Over 95% of this iron ore is in the form of beneficiated pellets. Today there is not an iron ore producer west of the Mississippi River, nor is there any production in the South. The Birmingham (Alabama) iron ore industry has been shut down since 1971. The western producers ceased operations in the early 1980's. Only the taconite operations in Minnesota and the plants in the Upper Peninsula of Michigan remain as our major domestic iron ore source. The economic situation for both the iron ore producers and the steel industry can be described as confused and in turmoil. Such a condition directly impacts the iron ore processing plants' operations and plans for the future. Plant Practice At present the nation's eight major operating iron ore mines, listed below, are concentrated in northern Minnesota (Mesabi Range) and the Upper Peninsula of Michigan (Marquette Range). The only exception to the Minnesota/Michigan location is the Pea Ridge Iron Ore plant in Missouri, which is a subsidiary of St. Joe Mineral s.

Jan 1, 1986

By A. Dale Wunderlich

With the price of precious metals at an 18-year low, every ounce of metal produced is important. The theft of metals from mining and refining sites can mean the diffrence between profit and loss for many mining companies. Low metal prices do not reduce the potential for the theft of precious metals. History has shown that the price of gold has little to do with the desire for employees to steal precious or base metals. There is actually evidence that the theft of precious metals increases when the price of this commodity goes down. Several of the major precious metal thefts in the past year took place at silver mines when the price of silver was less than 16 cents/g ($5/oz). How does the lowest gold price in 18 years affect the need for security at precious metals properties? There is no short answer to this question. One reason is because the exposure to theft of precious metals is unique to each property. This makes it important that each property be evaluated individually. More than 95% of all precious metals thefts can be attributed to those working at the mine site. So preventing employee theft is the primary concern. One consideration is the location of the property. Gold selling at any price is still an attractive commodity in countries where the employees are making between US$400 and US$600 a month. It is not uncommon for employees at mines in countries where low wages are the norm to consider the value of a gram or two of gold to be a significant amount of money. A gram or two of gold a day may not seem like much. But if 15 employees steal two grams a day, that equates to a significant amount of money during a year. The type of property where the precious metals product is being recovered is also important. For example, a property with a gravity circuit is more likely to suffer from the theft of gold product than a property where all gold is finely disseminated and the only gold seen in the ore body is through a microscope. Gravity circuits increase an operation's exposure to theft because the grinding circuit that is associated with a gravity circuit often becomes a giant concentrator. Areas such as the bottom of grinding-mill pump boxes, cyclone-feed-pump clean out traps and the sumps often become locations where precious metals concentrate (Figs. 1 and 2). Muck concentrations in these locations can be as high as 25% to 40% of gold or silver. Not long ago, muck was removed from a barren-solution sump at a Merrill Crowe circuit that had concentrated to more than 40% gold. At a milling site in the Pacific Rim, residents of the community adjacent to the mine learned about the value of the concentrates in the sump under the ball mill and committed an armed rob¬bery. While several of their co-conspirators held the em¬ployees at bay with machetes, the others emptied the contents of the sump into buckets and removed it from the site. Armed robbery is not as common as employee theft. However, while this article was being written, an armed robbery occurred at a gold property in Central America. Armed perpetrators took as hostages the night shift employees at a process plant and used cutting torches that were on site to cut into the high-security and gold-storage areas. The perpetrators then stole a company vehicle to remove the stolen gold buttons and sludge from the site. Unfortunately, this type of activity goes on regularly. But managements of most mining companies are reluctant to discuss theft scenarios. So information pertaining to the theft of precious metals seldom becomes a newsworthy item. An audit conducted at a mine site with a gravity circuit recommended that the gravity recovery area be shut down until adequate protection could be provided. Although it was not connected with the audit, it was necessary to shut down the gravity area for a pro¬longed period because of problems with the gravity table. In the two months that followed, gold production at the site increased by about 31 kg/month (1,000 oz/month). It is difficult to attribute all of this increase to the theft of concentrates. But there was a good chance that at least part of the increase was due to the fact that concentrates were being stolen from the gravity area.

Jan 1, 1998

Contributions made by mining have played a much more significant role in the development of civilization than is generally conceded by historians or recognized by ordinary citizens. In modern society, mined products pervade all industry and the lives of all civilized people. Early man relied largely on stone and ceramics, and eventually metals, to fashion tools and weapons. Civilization was advanced by discoveries such as abundant supplies of high-quality flint in northern France and southern England and firesetting to break rock. Middle Eastern cultures flourished not only because of agriculture and trade, but also because of mineral-rich deposits nearby. The earliest miners date back perhaps to 300,000 BC; their quest was for nonmetallic minerals (chert, flint, obsidian) suitable for utensils and eventually for weapons. Other rocks and minerals (ceramics, clay, salt, meteoric iron) attracted the miners for jewelry, cosmetics, construction materials, food seasoning, and coinage. At first, their excavations were confined to the surface, either pits or placers. But by about 40,000 BC, mine workings had been extended underground as short adits or shafts, and by 8000 BC as elaborate interconnected openings 300 ft (90 m) in depth. Metallurgical separation of metals from their ores and their subsequent fabrication evolved gradually over the centuries, copper being the first liberated (c. 7000 BC) followed by lead, silver, gold, and iron. Man enhanced both the sophistication of his

Jan 1, 2008

By H. L. Bourne

Not everyone understands the concept of mineral royalty. Mineral royalty is a fee paid to a landowner by someone who extracts a mineral commodity from the owners property. The royalty contract between the lessor and lessee contains clauses and conditions that are significant to both parties, e.g., annual m1n1mum, escalation factor, duration of the lease, reclamation and assignability. Comparison of royalty rates requires knowledge of many conditions that influence the value of a given deposit. People in several different professions benefit from shared royalty information.

Jan 1, 1989

By Edie Trimmer

Utah statute defines sovereign lands as "those lands lying below the ordinary high water mark of navigable bodies of water at the date of statehood, and owned by the state by virtue of its sovereignty." The lands within the bed of Great Salt Lake (GSL) are, by this definition, sovereign lands, acquired at statehood in 1896 in accordance with the "equal footing" doctrine, granting each state control and ownership of navigable waters and the lands underneath those waters within its borders. Under public trust doctrine, the state, as trustee for the people, bears responsibility for preserving and protecting the right of the public to use of the waters for navigation, commerce, fishing, recreation, and wildlife habitat. Also by statute, sovereign lands are defined as "state lands," to be managed by "multiple use sustained-yield principles." The Division of Forestry, Fire and State Lands is given management authority for sovereign lands and, as manager, has responsibility to prepare comprehensive plans, initiate studies of the lake and its resources, implement comprehensive plans through state and local entities, and coordinate the activities of various divisions within the Department of Natural Resources (DNR). The Division of Forestry, Fire and State Lands also has responsibility for management of mineral leasing on sovereign lands. The many resources on the lake--water, minerals, wildlife, recreation, archeological and historical values--are managed by as many state agencies which occasionally creates conflicts. The brines of GSL contain several ions that crystalize into valuable minerals during evaporation. The major ions in the lake are, in order of relative abundance, chloride, sodium, sulfate, magnesium, and potassium. Mineral products which are currently extracted from lake brines are sodium chloride, magnesium chloride brine which can be sold as flake magnesium chloride or further processed into magnesium and chlorine gas, and potassium sulfate. Mineral products which have potential for extraction include gypsum, sodium sulfate, and trace amounts of lithium, boron, and bromine. The GSL contained an estimated 4.3 billion short tons (st) (3.9 billion metric tons [mt]) of dissolved salts in 1998. Utah Geological Survey (UGS) estimates of the dissolved salt content in GSL have fluctuated from 4.0 to 5.5 billion st (3.6 to 5.0 billion mt) due to the dynamic conditions in the lake as salts are precipitated and redissolved, and due to the diversion of brines from GSL, such as the West Desert Pumping Project. The lake has four areas of varying salinity, separated by dikes or other man-made structures: north arm and Stansbury Bay brines at near saturation (25 to 27 percent total dissolved solids [TDS]); the main body of the south arm with concentrations ranging from 7 to 15 percent TDS as lake elevations fluctuate; the waters in Farmington Bay at approximately 3 to 5 percent TDS; and Bear River Bay at <1 to 7 percent TDS. The percent TDS in Bear River Bay fluctuates with lake level, and changes in Bear River inflow. The transfer of salts from the south arm to the north arm has raised questions about the viability of the mineral and brine shrimp industries. The UGS and the U.S. Geological Survey (USGS) continue to monitor salinities at designated sites on the lake to document changing lake salinity. A recurrent theme is that placement of dikes and diversions can have significant and rapid impacts on various conditions in the lake. Hydrocarbon resources on the lake are significant, but presently undeveloped. The hydrocarbons are low gravity (4 to 9 degree API) and tar-like, contain high nitrogen concentrations, and up to 12 percent sulfur. The unusual characteristics of the oil have been the subject of studies by chemists at Weber State University and University Louis Pasteur de Strasbourg. However, these resources are difficult, and at present, uneconomic to extract using current technology because of the nature of the hydrocarbons, and production in "an offshore, highly saline environment." Oolitic sand deposits make up many of the beaches and shorelines around the lake. Because of their high calcium carbonate content, oolites have been used by Magnesium Corporation of America (MagCorp) and its predecessors for acid neutralization and dike construction. Oolites are also used in very minor amounts in flower drying. The Utah Division of Oil, Gas and Mining reports up to 130,000 st (118,000 mt) mined annually by MagCorp from U.S. Bureau of Land Management (BLM) lands adjacent to GSL. Currently, there are twelve producing mineral leases which generated slightly more than $1,000,000 in royalties during calendar year 1998. IMC Kalium Ogden Corp. (IMC Kalium) produces potassium sulfate and magnesium chloride from brines concentrated through solar evaporation in Bear River Bay and Clyman Bay. By-product sodium chloride is transferred to IMC Salt, which packages and sells the salt. MagCorp produces magnesium metal from brines concentrated in Stansbury Bay. Cargill Salt produces sodium chloride from brines provided by MagCorp under a lease agreement. Morton Salt produces salt at the southeast end of Stansbury Island. Lastly, North Shore Limited produces cocentrated brines for use in dietary and mineral/vitamin supplements near Spring Bay in the north arm of the lake. Producers of magnesium, potash, and salt from GSL contribute significantly to the value of metals and industrial minerals in Utah. Together these companies contribute approximately $240 million in gross value, or 18 percent of the value of the state&apos;s nonfuel mineral production. Most of this production is exported.

Jan 1, 2001

By Gary Bennethum, L. Courtland Lee

INTRODUCTION For any identified mineral resource to qualify as a minable reserve, it must contain legally and economically extractable mineral at the time of determination. As competition for land has increased, the legal complexities have more than kept pace, frequently becoming the most important determinant in mineral exploration and development projects. Rarely will developers of a project avoid having to obtain numerous federal, state, and/or local permits while acquiring the necessary legal permission to begin mining. Each site must be selected carefully, not only for economic feasibility, but also for legal feasibility. Although it is impossible to present site-specific solutions for all potential underground developments, certain generalizations may be applied to specific land categories, particularly federally owned land. Such federally owned land includes more than 33% of the land area of the United States and many of the areas potentially attractive for future development. State and local restrictions affect a large portion of the nonfederal land, and those restrictions are equally important even though their diversity and current status require more regional study than can be provided herein (the list of references include sources of additional information). Each potential mining site requires a title search of the land status to determine the land ownership and the conditions affecting development. In addition, appropriate data concerning the mineralogic and economic potentials of an area must be collected. As listed in Table 1, many sources of public information are avail- able to aid potential developers. Fig. 1 illustrates a typical federal master title plat. HISTORICAL PERSPECTIVE The settlement of the United States reflects a fascinating history of public-land laws and subsequent mineral-disposal laws. Most of the statutes of the eighteenth and nineteenth centuries sought to dispose of land for the purpose of generating revenue to the federal government. The underlying need for general revenue contributed directly to numerous and often conflicting land policies. More recently, diverse federal programs such as environmental legislation have transcended the need for revenue in forming the framework that determines who has power over mineral developments and where those developments can take place. In 1812, the General Land Office was established under the Treasury Dept. At that time, English common law prevailed, entitling the owner of the surface to whatever was contained within the surface boundaries from the surface to the center of the earth. Unless a distinct title separated the mineral estate, it was included in the surface-land ownership. However, gold and silver were the property of the crown and were controlled by sovereign prerogative. Early state legislation on the subject of mines and minerals may be classified as legislation providing for the sale of state lands with a reservation of the minerals and legislation recognizing or asserting the sovereign prerogative for precious metals. In 1781, a Pennsylvania statute reserved 20% of all gold and silver ore for the use of the commonwealth. Thomas Jefferson suggested that a portion of all gold and silver be retained by the federal government. These early rules affecting land in the eastern states, now privately held, have been re- pealed, declared obsolete, or largely ignored. Federal legislation prior to 1848 and affecting mining may be classified as legislation reserving the minerals to the United States and legislation authorizing the disposition of reserved minerals by sale, lease, or grant. With many modifications, these basic policies remain in effect at the present time. A 1796 act provided for the sale of the Northwest Territory and for the establishment of the present system of rectangular survey for public lands. The Lake Superior copper region was the scene of "wild and baseless excitement in 1837" when the attorney general concluded that the president had the power to lease lands in Wisconsin; this opinion soon was overturned by another attorney general. By 1846, Congress had passed legislation authorizing the president to sell reserved lead mines "as soon as practicable" since the system of granting Leases had proved to be unprofitable to both the government and the lessees, many of whom refused to pay the rent. The general practice of early federal Legislation was to make a distinction between mineral lands and other lands, deal with them separately, and generally withhold mineral lands from disposal except through special legislation dealing with particular land. In 1848, following the treaty of Guadalupe Hidalgo, a vast land area was ceded to the United States by Mexico. This area included the present states of California, Nevada, and Utah, as well as portions of Arizona. Colorado, New Mexico, and Wyoming. This abolished the Mexican laws and customs relating to mining and preceded the adoption of the miners&apos; own rules and customs. The adoption of those rules and customs followed a hard-fought battle between western congressmen and the eastern establishment. The western congressmen advocated adopting local customs through a location patent system, while the eastern establishment, particularly in Ohio and Indiana, favored an all- leasing system to pay off Civil War debts. The first mining law was passed in 1869 as an amendment to an act granting right-of-way to ditch land owners, and it was followed by the 1872 Mining Law. Precedent was established for the first categories of protected lands in the opening words of this act, which included the phrase "all unreserved" lands. Reserved lands subsequently defined included military and Indian reservations and were excluded from location since they were determined to be reserved lands. However, the overriding purpose of the mining laws was to settle the western lands and generate revenues for the federal

Jan 1, 1982

By Willard C. Lacy

A mining operation begins with prospecting and exploration-stages with long periods of investment and high risk of failure. However, success in exploration ultimately determines survival of the mining industry. Prospecting and exploration may discover evidence of a mineral occurrence and outline its size and character, but ore deposits that support mining are "made" through the collective efforts of project geologists, geophysicists, geochemists, metallurgists, engineers, chemists, lawyers, and even politicians (Joralemon, 1975). Some deposits may go through multiple cycles of rejection and recommendation, discovery and development, decline and abandonment, rediscovery and development, etc., as economic, technological, or political conditions change or geologic understanding is improved. Peters (1987, p. 233) graphically illustrates the normal life cycle of a mine and the position of exploration in the cycle (Fig. 4.0.1). During the past fifty years, mineral exploration has evolved from comparing evidence of mineralization of prospects with that of known deposits to a more quantitative science employing many facets of geochemistry, geophysics, multispectral sensing from space, computer data storage, analysis, modeling, and most importantly, a better understanding of ore genesis. This modem approach to exploration began in the late 1940s and continues to develop. Exploration efforts peaked in the 1960s with emphasis upon the search for porphyry copper deposits, Mississippi Valley lead-zinc deposits, and volcanogenic massive sulfide copper-lead-zinc deposits. It peaked again in the middle and late 1980s with emphasis upon micron-size disseminated gold and epithermal and stratiform precious metal deposits.

Jan 1, 2008

By M. P. Juszli

During the 1980&apos;s, a revolution has been taking place in industrial minerals marketing. Transportation deregulation and a handful of creative marketing and distribution managers have completely changed the rules for marketing many industrial minerals. Minerals are being trans-ported much farther than in prior decades and at much less cost. Bulk and package terminals are becoming increasingly common as a means to take advantage of freight rate savings and to provide enhanced service to far-away customers. Water and rail transportation are being used increasingly to penetrate markets considered unreachable Just a few years ago.

Jan 1, 1989

By J. G. Russell

The valuation of known mineral re-serves entails the economic evaluation of the mining enterprise and the valuation of other assets employed, including mining and processing plant and intangible assets. A case study approach analyzes two reserve situations: ownership of reserves (phosphate rock), and leasing of reserve lands (kaolin). The appraisal of the physical property is outlined, along with the economic analysis of the operation. The discounted net cash flow approach is used to value the enterprise, leading to value of the reserves after correlation with other assets employed.

Jan 1, 1989

By Matias Pentinnen, Wayne Dickinson

Electrowinning is a key process for copper production contributing roughly twenty percent globally and thirty to forty percent of production in the Americas1. Copper grade is assessed largely on deposit smoothness and on level of impurities in the metal. Smoothing aids are essential to create dense, low porosity deposits and guar has long been the material of choice for this purpose. Guar is, however, poorly stable under the strongly acidic electrowinning conditions, underlying ongoing research to identify an effective, acid-tolerant replacement. Current efficiency is also a critical factor in controlling copper production costs and chemical additives should ideally improve current efficiency as well as improving deposit smoothness.

Feb 1, 2025

By J. M. Dean

With the continued downward pressure on coal selling prices, mine management must make its operations as efficient as possible. The problem is the same one throughout the mineral industries, streamlining operations to maintain competitive mining costs (Born, 1991). There has been a great deal of research into better using production manpower. But the story is different for operations support personnel. Traditionally, planning man-power requirements are done annually, with modifications to the operating plan occurring generally quarterly. On the other hand, the demands on manpower are often dynamic, being responsive to changing productivity levels ,mine conditions (including water influx, bad roof, poor floor)and unanticipated project requirements (responses to machine breakdowns or a new section setup requirement because of a drop in coal quality in another area). Such changes may impact the manpower structure significantly. At times they may cause serious labor relations problems concurrently. Realignments and the generation of instability in the workforce because of active job switching (bidding) are a result. Most responses by coal operators are reactive rather than proactive, a situation that could be mollified by more accurate and detailed planning of predictable manpower requirements. A manpower planning tool is needed that takes into consideration such things as changing productivity levels and conditions as manhour requirements for different work areas are planned, rather than blindly allocated through traditional staffing modes.

Jan 1, 1995

By M. Rieber

In July 1985, as the U.S. copper industry contracted and the Mexican industry expanded, a trans border pollution agreement was signed which included smelter air pollution control in the "Gray Triangle": Cananea, Nacozari and Douglas. Since then the Douglas smelter has been closed, a year earlier than initially required; though its new smelter is operating, S02 collection and acid disposal at Nacozari is yet to come; and the Cananea smelter has been un-touched. Nacozari and Cananea copper mining have expanded while a reduced U.S. copper industry has rationalized to a point of fragile profitability. As a paradigm of U.S. copper competitiveness, this paper attempts to explain the differential fortunes of copper in the two countries, to project the future of the smelter agreement as a function of acid disposal, and to consider the consequences of the politicized application of smelter pollution control in Arizona.

Jan 1, 1988

On Dec. 20, 2013, an 8-m (26.2-ft) diameter Robbins hybrid single shield/earth pressure balance tunnel boring machine (EPB TBM) was launched to bore the Grosvenor decline tunnel for Australia?s Anglo American coal mine. The machine was built using onsite first time assembly (OFTA) in order to fit within a tight project schedule. Assembly at the remote jobsite near Moranbah, Australia took about four-and-a-half months, and then the machine was walked down into a launch tunnel. Two decline tunnels, at grades of 1:6 and 1:8, will be used for mine access to new coal seams. The hybrid machine is tackling mixed ground conditions ranging from sand and clay to varying types of sedimentary hard rock up to 120 MPa UCS, as well as coal seams. Methane gas is expected to be present throughout the tunnel, so the machine has been designed as explosion-proof-compliant to ERZ-1. ?Grosvenor is the first underground coal mine in Queensland to use a TBM for drift construction,? said Glenn Tonkin, Grosvenor project director. ?We are proud to be pioneering this technology.? Only about 300 m (984 ft) of ground in each decline tunnel is expected to require EPB mode, while the rest of the tunnel will be bored in hard rock mode. Thus, the design was optimized toward hard rock excavation.

By N. T. Rogers

An accepted statement of fact is that transportation next to agriculture is the second most important industry in the world. The transportation networks of the United States contributed immensely to the growth and prosperity of our nation. My objective is to make each and everyone here aware of the need for communication between geologists, mining engineers, purchasing agents and transportation managers. Only through a cooperative effort is it possible to reap the benefits of transportation in the industrial minerals field. Transportation is often thought of in terms of trucks, rail cars, barges, covered wagons or whatever. If this is your only exposure to the transportation industry then you probably spent most of your life in a cave.

Jan 1, 1989

By Steven McCutcheon

As most of us have learned through prior and often frustrating experience, anyone proposing to construct a new or expanded mining-ore processing facility must first contend with a rather complex array of environmental laws and permitting regulations administered by a number of different Federal, State and local agencies. At our lost count, there were about 55 federal enactments affecting base and precious metals projects. Applicable State and local laws will usually increase that number significantly. The time and costs associated with complying with all these various regulatory programs usually constitutes one of the major areas of uncertainty in the development of a proposed project. There are many in the mining industry who firmly believe that these environmental regulation and permit programs necessarily causes significant delays and increased costs in the development of a project. This belief, unfortunately, is probably a result of a basic misunderstanding of how the environmental permitting and regulatory system actually works.

Jan 1, 1984

By Emily Wortman-Wunder

While the mood at the 2013 annual joint meeting between the Pittsburgh Coal Mining Institute of America (127th Annual Meeting) and SME Pittsburgh Section (68th Annual Off-the-Record Meeting) in Canonsburg, PA was subdued following a rocky year in the coal industry, attendance was down only slightly, to 300, and overall, the meeting?s focus was optimistic about the future of coal. The conference began by addressing one of the central challenges of coal mining head-on with a keynote address on the status of safety in the mining industry. Noting that two more U.S. miners had died in 2013 than by the same date in 2012, the National Mining Association?s (NMA) Senior Vice President of Regulatory Affairs Bruce Watzman made a plea for a new approach to safety. He described the NMA CORESafety initiative, a program that promotes proactive safety measures versus a compliance-driven model. CORESafety, described in more detail on pp. 29 of this issue, focuses on developing successful ways to change company cultures of safety and behavior. Other industries that have adopted this approach have seen dramatic drops in fatalities, including the Australian mining industry, which has seen its annual fatality rate drop to nearly zero even while the number of people employed in the industry has soared. The rest of the morning?s sessions explored what is arguably the industry?s biggest challenge right now ? maintaining the social license to operate.

Jan 1, 2014

By Heather Wright

Shovel operators are one step closer to having a better tool to operate and monitor their equipment. The development of a unified shovel interface is proceeding into phase three, focused on producing a standard application programming interface (API) for connecting onboard devices. This solution will positively impact safety, performance and productivity, and is the result of collaborative work driven by the Global Mining Standards and Guidelines Group (GMSG). Proof of concept revealed During the spring of 2013, Peck Tech Consulting was engaged to develop the working proof of concept (POC) software implementation, which integrates multiple vendors? systems into a single interface using one-to-two displays. As a result, the GMSG developed a functioning, manipulatable, unified shovel interface proof of concept and unveiled it at the World Mining Conference in August in Montreal. The proof of concept effectively provides a unified operator interface that pulls together the many divergent systems onboard large shovels.

Mar 1, 2014

By Richard W. Brummett

Problems in new strip mine development is a subject that could require several days to cover adequately. Coupled with the fertile imagination of television writers, we could probably expand it into a series rivaling Gunsmoke in longevity with just as many shootouts at sundown. It would-of course-be subject to a high Neilson Rating. To bring the subject into perspective, we will limit the comments to a general discussion covering western strip coal developments. Stimulated by increased demand for low sulfur coal, surface mineable western coal operations began a shift into high gear approximately four years ago. Then came last year&apos;s "energy crisis" that increased the pressure on coal development not only in the west, but nationwide. Several eastern power plants having dual oil and coal burning facilities were directed to discontinue using oil. Also, a number of new south and southwestern power plants scheduled to burn natural gas or of I commenced an ordered conversion to other fuels, namely, coal. The involved utilities with reserve positions accelerated their planning while others began the search for long-term commitments from coal producing companies. In addition, announcements were made for proposed mine mouth coal gasification projects in New Mexico, Wyoming, and North Dakota.

Jan 1, 1974