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By John Hickey

Management teams at mining companies begin to ask themselves whether to take a company public and, if so, how to do it as they approach the normal threshold for going public in terms of revenue and operating performance. Today, the expense of going public generally suggests the company has at least $20 million in annual revenue and at least $2 million in cash. The revenue number can be lower for mining companies with large reserves. In order to properly attract the investing public, the company must also be operationally strong with robust prospects. The company should have a strong management team and a consistent history of double-digit growth that will continue into the foreseeable future. Assuming the thresholds are met, a company?s management needs to weigh the pros and cons of going public.

Jan 1, 2012

By J. Z. Keating

There are close to two million tons of Industrial Minerals processed and sold in North America wherein the processor/marketer has no affiliation with the source mine. The largest quantity, about 800,000 tons, is barium sulfate, which is sourced in lump ore form mainly from China and India. The Alumina Trihydrate Industry sources several hundred thousand tons from various alumina refineries. Substantial quantities of bauxite, zircon, magnesite, and fluorspar arrive in North American ports each month. There are also rapidly growing quantities of offshore talcs and calcium carbonate ores being processed in U.S. plants. These feedstocks are usually quite pure, have unique properties, and enjoy bulk rail or waterborne freight economies that allow successful competition with locally sourced raw materials. With increasing restrictions on mining activities, and the increasing need for sophisticated functional minerals, the importation of minerals will continue to grow.

Jan 1, 1994

By J. E. Brownhill

This paper does not deal with the typical start-up issues of equipment, production capacity or work force. This is a description of the challenges faced and the changes made by the project team to bring to fruition the reconstruction of Port Inland. Many honored traditions and norms had to be overturned to find the winning combination that provided the productivity, flexibility and cost necessary to survive in today's competitive minerals environment. This paper covers the innovation in terms of machinery, operations, and management philosophy that permitted the renovation and reopening of Port Inland as a commercial limestone producer in the spring of 1992. Port Inland, constructed by Inland Steel in 1930, operated as a captive source of metallurgical grade limestone for the steel industry until its closure in 1989. Located in the Upper Peninsula of Michigan on the north edge of Lake Michigan, the operations consist of a deep water port facility with crushing, screening and stockpile storage for 500,000 tons of finished product at the port. Ninety-nine percent of the stone is shipped via lake boat to ports within the Great Lakes. The operation is unique in that both metallurgical Dolomite and Limestone are produced on site. In 1930, Port Inland was at the fore front of technological advancement. It was the first major mining operation to use roller bearings and other equipment innovations. Over the 60 years of operation, Inland Steel placed emphasis on steel making technology and iron ore mining at the detriment of the limestone operation. By the early 80's, Port Inland was no longer a leading competitor. Inland Steel, unable or unwilling to spend the capital to modernize, closed the facility in the fall of 1989.

Jan 1, 1994

By M. J. Virnig, G. A. Kordosky

Throughout time, the mining industry has been very successful in meeting the world's requirements for metals and materials while meeting the challenges of decreasing ore grades and increased emphasis on protection of the environment. This success has been due to the development and implementation of new technologies. A clear example of such a development over the past 25 years is the increasing use of leaching/solvent extraction/electrowinning for the recovery of copper from oxide and sulfide ores. The key to the successful introduction of this technology was the discovery and development of the hydroxyoxime liquid ion exchange reagents by General Mills Chemicals (now Henkel Corporation). An important role was also played by the close working relationships between General Mills Chemicals and Ranchers Exploration which resulted in startup of the first plant in 1968 and between General Mills Chemicals and Bagdad Copper which resulted in the startup of the second copper SX-EW plant in August of 1970. Following on the heels of the hydroxyoxime development came the commercialization of other new chelating reagents based on different chemical functionalities, i.e., beta-diketones, alkylated 8- hydroxyquinolines and sulfonamidoquinolines. This initial spurt of activity was then followed by a slowing of development in terms of new reagent functionalities. Activity has continued in terms of further optimization/improvement of existing reagent functionalities but the commercialization of new reagent functionalities has slackened. This observation reflects the fact that the development of new reagent functionalities for metal recovery has become increasingly more expensive such that the right combination of price and sales volume must exist in order to justify the investment required to bring a new reagent to the market place. Given the dependence of the mining industry on innovation to meet the needs of the future, one can ask how these new developments, particularly in new reagents, will occur. To arrive at an estimate of the costs involved in commercializing a new metal extractant functionality, particularly a chelating type functionality, a case study of the development of LIX ®* 34

Jan 1, 1994

By Jr. Bacon

Kaolin clay is one of the yeoman minerals. It sees duty in almost every aspect of our lives: -in and on most paper products (from modern newsprint to National Geographic and packaging board) sometimes as much as 25% (by weight) of the product -40% of the tile (ceramic, rubber, and linoleum) you walk on. -15 % of the tires you ride on, -30% of the fiberglass filaments in circuit boards, bathtubs, boats, doors, and more, -25% of many housepaints, adhesives, grouts, caulks, and putty -30% of sparkplugs, power insulators, dinnerware. and toilets, -50% of most catalysts (both cracking and emission control) -20% of cosmetic powders. -20% of wire insulation, and animal feed to rocket insulation!

Jan 1, 1993

By C. D. Harrison

The 1990 Clean Air Act Amendments specify national objectives for reducing sulfur dioxide emissions from coal-fired power plants System-wide reductions can be achieved by combining various emissions controls technologies and allowances, or compliance credits, that can be purchased, sold, or traded. As part of the Coal Quality Expert development project funded by U.S. Department of Energy and the Electric Power Research Institute (EPRI), Black & Veatch has developed an interactive computer tool, the Acid Rain Advisor (ARA). ARA allows the user to develop integrated system-wide compliance plans by comparing the costs and emissions reduction benefits for emissions allowances and various SO2 control technologies such as coal cleaning, fuel switching, and scrubber retrofits.

Jan 1, 1992

By J. L. Heaver

All complete plant foods require phosphorus, nitrogen and potassium. And phosphate rock is the primary source for the phosphorus of the inorganic fertilizers. As more and more world food production is grown with these chemical fertilizers and since the Florida field supplies over 30% of the phosphorus component, let us look at the vital phosphate industry. Mining of phosphate rock in Central Florida began in 1891 and production has continued to grow at a steady pace. In 1965 a phosphate mine was opened in Hamilton County, North Florida and one in Beaufort County, North Carolina in 1966 . Since the beginning of mining in 1891, approximately 700 million metric tons of phosphate rock have been produced of this amount one-half was mined in the last 11 years. While the field was not deliberately "high-graded," the best of the known deposits were mined first. Those now being mined, and those yet to be mined, cost more to operate and the product is of lower grade. The U. S. Bureau of Mines' data for 1977 lists "Florida" phosphate rock production as 40.6 million tons; 86% of U. S. production and 85% of "Florida" capacity. The U. S. Bureau of Mines includes North Carolina production in "Florida" statistics so as not to reveal individual data for the one mine operating there. Approximately one-half of "Florida" production is exported, either as rock or as rock equivalent in upgraded products. Deposits of phosphate rock necessary to support present and future production are catalogued as: reserves, paramarginal reserves and resources. Reserves denote deposits which can be mined at a profit now. Paramarginal reserves are defined by the U. S. Bureau of Mines and the U. S. Geological Survey as: that portion of sub-economic resources that a) borders on being capable of production economically, or b) is not commercially available solely because of legal or political circumstances. The " b)" part of this definition may now be expanded to include environmental controls and requirements. Resources are deposits which cannot be mined at a profit at present. Listed in Table I are reasonable values for each of the three categories of phosphate deposits in the northern and southern parts of Central Florida. North Florida and North Carolina.

Jan 1, 1978

By J. Gustavson, E. Mallard, F. Pirkle

The Sales Comparison Approach to estimating the value of a mineral property must always be attempted1 . In addition to other parameters, the approach depends heavily on the availability of transaction data. The consideration for the mineral property must be in form of cash, cash equivalent or other consideration. In other words, “What dollar amount did the property sell for?” Mineral properties are generally real estate, albeit frequently buried deeply under the overlying surface real estate, unless the property may be a quarry. In some states, transactions must be recorded in county courthouses, and the sale consideration must be included. In such cases, the appraiser’s job is made easy. In other locations, the sale considerations are withheld in the courthouse data; but occasionally a local transfer tax is collected and recorded. Again, the appraiser’s job is made easy by back calculation with knowledge of the legislated transfer tax percentage. The worst problem occurs when the consideration for a mineral real estate sale is totally withheld. That may occur in so-called nondisclosure states. A recent map2 of ten non-disclosure states in red is shown below. For the full color code, please refer to the footnote

Mar 2, 2022

Coal has traditionally been an integral part of life in Kentucky. Coal mining produces a large part of revenue for the Commonwealth of Kentucky and provides a significant number of jobs to the residents of eastern (less in western) Kentucky. Recently, however, the coal industry of Kentucky has had to endure many hardships. The Clean Air Act set forth sulfur dioxide emission standards which have severely affected much of the coal mining industry in Kentucky, because much of the coal mined in Kentucky has a high sulfur content. In this paper, the background around the effects of Clean Air Act on the coal industry is introduced. The economic and social effects of the Clean Air Act on the Kentucky coal mining are addressed.

Jan 1, 1993

By G. E. Erdman

This paper presents talc milling guided by a theme of "So You Want to Be In The Talc Business". Such a theme strikes a cautionary note to warn the uninitiated of potential pitfalls, and this paper will cover briefly some of the technical traps as well as one of the larger talc milling operations. It is important to our purpose to pre- sent some of the market and mineral complications that make the business of producing and selling industrial talcs much more intricate than an outsider would perceive. Metal markets by comparison are great worldwide pools into which production streams of generally identical metals can flow over a weir of market prices. Industrial talc markets are not as well defined and often must be developed by the producer working closely with a specific customer or groups of customers to prove out the attributes of the specific product from a new property. All the negatives of a new market seem to work against the introductory talc in the forms of industry or customer reluctance to change, sales prices, cost of delivery, mode of transportation, health considerations of the minerals and many more. Just locating the potential customers for a new industrial talc may be a substantial undertaking. Thus, an analogy of the worldwide metal market might compare starting a new talc operation to trying to gather up enough fallen rain drops to be able to start a production stream of a worthwhile size.

Jan 1, 1984

By S. M. Carpenter

In an ever increasing ?carbon? society; management and growth will be measured by one?s carbon footprint (or output). Industries, especially mining, are under an ever increasing scrutiny of carbon, water and environmental mandates. These mandates are measured by the emissions caused by the combustion of fossil fuels. The fundamental building-block for any business, strategic or management decision must be based on an understanding of one?s ?footprint?. The scrutiny is most stringent for the commodities producers, power producers & fuel suppliers in the energy market. An overview of currently acceptable standards, application of those standards and nuances experienced in collecting the data necessary to analyze and complete a company?s carbon footprint will be presented. A lack of regulation, the fear and expectation of new and ever constraining rules, regulation and a change in the federal administration is a recipe for uncertainty in the marketplace.

Jan 1, 2010

By J. H. Fowler

Canada's gypsum industry began over two hundred years ago in the Maritime Provinces when farmers attempted to supplement their incomes by selling "land plaster" to traders bound for the United States. Rising from such humble beginnings, gypsum now contributes significantly to the economies of nine of Canada's ten provinces. Thirteen open-pit and three underground mines produced a total of 8.38 million tonnes of crude gypsum and seventeen processing plants manufactured 2.49 million tonnes of finished products in 1985. Recent economic growth in North America has resulted in steady increases in gypsum production, however, competition from foreign producers and by-product gypsum poses a growing threat to Canada's gypsum mining industry.

Jan 1, 1987

By J. D. Forrester

I have availed myself of the opportunity to prepare, and to give this talk because, as incumbent Chairman, I am directed by the Bylaws of the Council of Education to make an Annual Report of the Council activities which have transpired during the past year. In addition, and inasmuch as I have this captive audience, I am taking the liberty to express also some beliefs I hold about various other elements of Mineral Industry education. First, my report is that constructive progress has been achieved in the Council of Education during 1960-61. These advancements have been particularly notable through projects carried on by the Committee on Meetings and Programs, by the Student Chapters Committee, by the Accrediting Affairs Committee and by the Committee for Securing Better Representation of Mineral Industry Colleges. I believe each of these groups will report concerning details of their respective programs at the Business Meeting of the Council. On the other hand, not as much has been done in some areas of work as I had hoped would be the case when I took office as Chairman last February. Let me make clear that these delinquencies, for the most part, have resulted through my ineptness in handling of affairs; they are not caused by the failure to perform various assignments which I have given to council members.

Jan 1, 1961

By K. Dagdelen

The definition and shortcomings of traditional cutoff grades are discussed. The concept of optimum cutoff grade policy which maximizes the Net Present Value (NPV) of annual cash flows coming from a mining project is introduced within the basic framework outlined by K. F. Lane. Several examples are used to demonstrate the shortfalls of cutoff grade policies obtained by various heuristic optimization techniques. An algorithm to obtain an optimum cutoff grade policy which maximizes the NPV of a project is given and described in detail.

Jan 1, 1993

By Deepak Malhotra

Following a severe recession in the early 1980's, mining companies have taken significant steps to improve metallurgy and reduce operating costs. They do not view chemical reagents and the long-term relationship with reagent producers the same way they did two decades ago. This paper discusses the general perspective of changes that have taken place over the years, especially with respect to cost of production, selling price and environmental constraints. A cooperative program between the consumers and producers of chemical reagents is recommended to understand each other's problems and identify the present and future needs of the mining industry. This approach will be beneficial to the long-term survival of both parties.

Jan 1, 1994

By G. C. Adams, J. H. Fowler

Canada's gypsum industry began more than 200 years ago in the Maritime provinces when farmers attempted to supplement their incomes by selling "land plaster" to traders bound for the United States. Rising from such humble beginnings, gypsum now contributes significantly to the economies of nine of Canada's 10 provinces. Thirteen open-pit and three underground mines produced a total of 8.4 Mt (9.3 million st) of crude gypsum, and 17 processing plants manufactured 2.5 Mt (2.8 million st) of finished products in 1985. Recent economic growth in North America has resulted in steady increases in gypsum production. However, competition from foreign producers and by-product gypsum pose a growing threat to Canada's gypsum mining industry.

Jan 1, 1987

By T. R. Ellis

The vast majority of valuations produced for mineral properties using the net present value method provide an estimate of investment value or use value. Such an estimate can be a long way from the price that the property would actually sell for if placed on the market. Indicators from the market need to be used to validate or modify the net present value calculation if market value is being appraised. The comparable sales and replacement cost methods used in the appraisal of urban buildings generally fail when used in the appraisal of mineral properties. Other methods of sales analysis are introduced. Guidelines for what a minerals appraisal report should contain are presented.

Jan 1, 2002

By Paul Wellman

The energy problem of the U. S; was emphasized by the oil embargo of late 1973 and early 1974 and it seemed for a time that the Federal Government, under pressure from the general public, might take some corrective action. However, this was not the case. With the gasoline lines gone and an apparent plentiful supply of petroleum products, public concern quickly dissipated., This country is more vulnerable to an oil embargo today than we were in 1973-1974 and this fact should be of concern to all our people. Since 1968, we have used oil and natural gas at a much more rapid rate than we have been able to find new domestic sources; thus, there is an increasing gap between domestic production and consumption and we have filled the gap with ever increasing oil' imports. These imports have increased at an alarming rate in the recent past, some 58 percent in 1976 compared with 1975. Imports are nearing 8 million barrels per day. Then, by applying some simple arithmetic, at $12 per barrel, the resulting trade deficit is $96 million per day or $35 billion per year. Obviously, this cannot be tolerated by our economy over a long period of time. Historically, we have shifted from one fuel to another as is shown in this slide. In 1850 about 90 percent of our fuel requirements came from direct combustion of wood, by 1900 we shifted to coal for 70 percent of our fuel, and now about 78 percent of fuel requirements comes from oil and natural gas. The difference is that the previous shifts were voluntary and the one facing us now is of necessity.

Jan 1, 1977

By Casters B. Foster

The U.S. Department of Energy has undertaken, in a cost sharing partnership with industry and utilities, an extensive coal-oil mixture (COM) combustion program in a number of promising applications. One of these is the injection of COM through tuyeres into a blast furnace in lieu of oil. From work done previously, it has been established that COM can be burned in existing oil, fired facilities. The issues being addressed by the current DOE program are: 1) determination of best available technology to achieve environmentally acceptable operation, and 2) determination of applications for which COM can be utilized economically.

Jan 1, 1978

By James M. Barker

No commodity agreements now exist for sulfur and a lack of reference to sulfur commodity agreements exists in the literature. Law (1975) made a passing reference to sulfur as one of a group of commodities where "there have been additional control efforts of various types." Clearly, sulfur was a candidate, at least conceptually in the past, for some form of commodity agreement and the following discussion centers on the world sulfur market of the early 1980's in this context. GENERAL THEORY OF COMMODITY AGREEMENTS The upsurge in demands for commodity agreements seen in the last decade or so stems largely from agitation by the less developed countries (LDC) for better economic treatment by more developed countries (MDC). Several economic factors, real or imagined, adversely affect the LDC's as follows (MacAvoy, 1977): 1) variable demand in MDC's causes wide fluctuations in commodity prices which hurt the economies of commodity producers, who are often LDC's although consumer economies may also benefit from more predictable prices; 2) a general decline of commodity prices relative to the price of manufactured goods which hurts commodity producers in their balance of trade while their stocks and overcapacity rise; 3) instability of LDC economies enhanced by the above factors lowers internal stability, inhibits foreign investment, and retards economic growth; and 4) a lack of self respect when dealing with developed countries o, following the OPEC lead, LDC producers want the stature related to cartel market power.

Jan 1, 1985