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By Andrew L. Mular, K. K. Humphreys

Introduction Estimates performed on potential future plants must by their very nature be either order-of-magnitude or budget (preliminary) estimates. Of the three types of estimates recognized by the American National Standards Institute (ANSI Standard Z94.2), order-of-magnitude and budget estimates are the least accurate. Order-of-magnitude estimates have an expected accuracy of plus 50 percent to minus 30 percent. In other words, it is anticipated that actual project cost will be no more than 50 percent above the estimate and no less than 30 percent below the estimate. Budget estimates, or preliminary estimates as they are often called, have an expected accuracy of plus 30 percent to minus 15 percent. The reason that greater accuracy cannot be expected in performing estimates on proposed new facilities is simply that insufficient data is generally available to permit performance of a highly accurate estimate. As stated in ANSI Standard Z94.2, a definitive estimate, i.e., an estimate with an expected accuracy of plus 15 percent to minus 5 percent," . . is an estimate prepared from very defined engineering data . . . (including). . .as a minimum, fairly complete plot plans and elevations, piping and instrument diagrams, one line electrical diagrams, equipment data sheets and quotations, structural sketches, soil data and sketches of major foundations, building sketches and a complete set of specifications." In other words, the engineering of the project must be fairly well underway to permit a definitive estimate to be performed. Such is the case only after the construction decision has been made, all potential alternatives evaluated, and major expenditures committed for a particular course of action. This situation is beyond the scope of this chapter. The chapter is directed to comparison of various technological alternatives for which site specific engineering data is not generally available. Accordingly, such comparisons can be made only by utilizing preliminary or order-of-magnitude estimating techniques.

Jan 1, 1982

By John Lohrenz

Consider an investor who, knowing future costs and revenues, can choose how rapidly to produce from a given mineral source. If the investor elects to make that choice to maximize present value of future profits, how do policies affect the choice? Various alternative policies are examined. Some, such as higher royalty rates, lead to slower production rates than would otherwise obtain. Clearly, the chosen rates of production are policy-dependent. One is wisely counseled to consider how mineral policies affect the rate of production from given sources when analyzing current and alternative policies.

Jan 1, 1982

By Y. C. Kim, I. K. Chopra, F. Martino

This paper reviews geostatistical work in a coal deposit performed jointly by the University of Arizona and the Homer City Owners. The study objective was to Predict more accurately the inseam sulfur values of the deposit for the purpose of future emission control. Based on initially available 112 DDH information, variogram models were developed for sulfur, ash, and thickness for the entire deposit. The deposit was then kriged using 333 m x 333 m panel size. Kriging produced better results than conventional isopachs. The estimation variance information obtainable from geostatistics was then used to improve development drilling activities that were underway. This effort was successful. Up-to-date experience on the use of conditional simulation of the deposit appears promising for future emission control strategy development

Jan 1, 1982

By John R. Dyni

Colorado nahcolite deposits, estimated at 29 Gt, formed in an asymmetric permanent-lake basin whose waters were rich in algae and sulfate-reducing bacteria. Nahcolite (NaHCO3) occurs in oil shale of the Green River Formation (Eocene) as aggregates (62%), disseminated crystals (24%), and impure beds (13%). Because much of the nahcolite is nonbedded, it will be mined with oil shale and can be concentrated to marketable grade by crushing and screening. Impurities in nahcolite are kerogen, quartz, pyrite, and carbonate minerals. A promising new market for nahcolite is in the process of removal of sulfur dioxide from industrial stack gases. When heated, nahcolite reacts with sulfur dioxide to form sodium sulfate. Differences in thermally induced microporosity may explain why nahcolite is more reactive than trona, a Possible competitor with nahcolite for SO2 removal. Limited production of nahcolite at one or possibly two localities is expected in the next several years, but large-scale production is probably at least 10 years away.

Jan 1, 1982

By Charles W. Bauer

Most of the aluminum produced in the United States today is derived from foreign bauxite deposits. Earth Sciences, Inc. initiated a program to evaluate domestic non bauxite sources for alumina in the 1960's. In the initial evaluation of alunite, domestic resources were not sufficient to support development. An exploration program led to the discovery of large deposits of alunite in Utah and several other western states. Identification of alunite is difficult as both its physical and chemical characteristics are similar to the minerals with which it is associated. Most of the significant alunite deposits in the western United States are replacement type deposits. These deposits have formed as a result of hydrothermal alteration of volcanic, sub-volcanic, and igneous rocks. Typical alunite deposits contain between 30 and 50% alunite and 50 and 70% quartz, with minor amounts of other minerals. Four mineralogical zones are common in these systems. They include a siliceous zone, a quartz-alunite zone, a kaolinite zone, and a chlorite-montmorillonite zone. Total US reserves of alunite were estimated at 20 Mt fat 30% alunite) by the US Bureau of Mines in 1941. More recent work by the US Geological Survey estimates reserves of 252 Mt and potential resources at 1.4 Gt. Reserves and resources estimated for 23 properties on which field work has been done by ESI are considerably higher. Most of these properties have reserves and potential resources of several hundred million metric tons. The combined demonstrated reserves of these properties are estimated to be about 650 Mt. Inferred reserves are estimated at 2.5 Gt and potential resources at 8 Gt. It appears that the US has sufficient reserves and resources for alunite to be considered as a potential nonbauxite source of alumina.

Jan 1, 1982

By John Ward Smith

Dawsonite-bearing oil shale of Colorado's Green River formation offers a unique and vast (more than 5.9 Gt of A120 j) resource of easily extractable alumina. The processing methods required by the thermal reactions of dawsonite and its oil-shale carrier also require production of shale oil, soda ash, and nahcolite as marketable coproducts. These production methods are presented. The alumina production process is contrasted with the Bayer process to describe technical advantages of extraction of alumina from oil shale which may offset the problems associated with processing a relatively lean ore. While alumina production from oil shale requires development of new technology, the technical problems appear solvable. Only the political problems arising from the now onerous and completely unnecessary federal oil-shale withdrawal appear less solvable.

Jan 1, 1982

By D. M. Spratt, O. R. Bell

In Australia's remote northwest are located the operations of Cliffs Robe River, one of the world’s largest iron ore projects. initial project cost was $US300 million and required the construction of a deepwater port, two towns for 3000 people, a 105 MW power station, and 170 km of railroad, all in harsh, arid country over 1300 km from the nearest industrial center. The ore occurs as goethite cappings on scattered mesas and averages 57% iron. All aspects of the project are reviewed from pre-operational research, through project construction to current operation.

Jan 1, 1982

By F. M. Lewis, R. B. Bhappu

In 1977 a paper was presented which reviewed the cost trends in producing copper by conventional processes for five years, 1972 through 1976. In this paper these costs have been updated to include the years 1977 and 1978.

Jan 1, 1982

By Jim F. Lemons

INTRODUCTION A nickel doesn't buy much anymore. That's even true in the cost of recovering nickel -- the commodity. A 5[C] per pound (11 [c] per kilogram) increase in the nickel price won't cover a 10-percent increase in fuel costs for processing laterite ores, nor will it cover a 10- percent increase in wages for recovering nickel from a sulphide ore. It won't even cover a 5- percent increase in the capital cost necessary to mine and process ocean nodules. The basis for this statement and a quantitative analysis of the variations in costs to recover nickel from different types of nickel ores will be discussed in this paper. During the early part of the 1970's, the interest in nickel and its potential development was shifting from Canada to the Pacific Basin area. Canadian growth rate was slowing and each additional increase in nickel capacity was very expensive (Argall, G.O., 1970). Laterite ores were attractive to developers since they were easy to mine at a low labor cost, and technologies were being developed that would allow the recovery of nickel in marketable forms (Mohide, T.P., Warden, C.L., Mason, J.D., 1977). During the last decade, new laterite production was achieved in the Philippines and Botswana, and a significant increase in production from Indonesia and New Caledonia occurred. However, recent reports on nickel identify numerous problems plaguing the industry, i.e., high energy costs that are forcing shutdowns (INCO, 1980), (Mohide, T.P., Warden, C.L., Mason, J.D., 1977), high Canadian sulphide mining labor costs (Anon., 1976), and rapid inflation of nickel capital costs (Anon., 1981b). No definitive study has been made to determine how sensitive the total cost of production is to rising energy, labor, or capital costs, or to identify to what extent increased byproduct revenues could be used to offset these production costs. The purpose of this paper is to quantify the effects of increases in energy, labor, capital costs, and by-product credits on the future cost of production from nickel reserves and/or resources. METHODOLOGY OF ANALYSIS In order to evaluate the sensitivity of nickel production costs to changes in energy, labor, and capital costs, and in byproduct revenues, an analysis was made of existing and proposed nickel operations, their costs, and their sensitivity to change. The data for these analyses were obtained from numerous sources including international govern¬ment and university publications, professional journals, company reports, private communications, U.S. Bureau of Mines contracts, and estimates by Bureau of Mines personnel. These data were collected, in part, as an ongoing effort of the U.S. Bureau of Mines Minerals Availability System (MAS) to systematically measure and classify identified mineral resources according to their respective extraction technologies, economics, and commercial availability. The MAS Program is currently evaluating the present and potential availability of nickel to the United States in relation to mining, beneficiation, smelting, refining, leaching, transportation, infrastructure, environment, land use, labor, productivity, technology efficiencies, operating capacities, deposit life, and political factors. As a summary of this data, the following briefly describes nickel ore types as each relates to energy, labor, capital, and byproducts. Sulphide Operations Nickel is currently available from sulphide deposits. Roughly 55 percent of the current world nickel production in market economy countries is from sulphide ores, although only about 20 percent of the known land-based nickel reserves and/or resources are sulphides (INCO, 1981). In 1979, the Western World sulphide reserves were estimated at about 9.2 million metric tons of nickel (Little, A.D., 1979). Sulphide ores are typically mined underground, thus resulting in high mining costs; however, these ores can often be upgraded by flotation prior to final nickel recovery and require about one-third of the energy required to recover nickel from laterites (Anon., 1981c). In addition, nickel in sulphide ores may be associated with economically recoverable byproducts, which include copper, cobalt, gold, silver, and other precious metals. Laterite Operations Forty-five percent of current nickel production is from laterite deposits. Laterite deposits account for 80 percent of the known land-based nickel reserves and/or resources (INCO, 1981). In 1979, the Western World laterite reserves were estimated at over 35 million metric tons of nickel (Little, A.D., 1979). Nickeliferrous laterites are residual soils formed by weathering, typically under tropical or near tropical conditions. They can be easily mined by open-cut methods, but generally cannot be beneficiated; thus, recovery of nickel must entail processing of the total mined ore. Usually, these ores have high moisture content (20 to 30 percent by weight) that result in additional fuel costs to dry the ore. Nickel silicates, garnierites, are, processed by pyrometallurgical methods; limonite nickel oxides are normally leached. Byproduct cobalt is not recovered from most ferronickel operations, and is only recovered to a limited extent from many leach operations.

Jan 1, 1982

By J. George Gregr

INTRODUCTION This part contains field case studies of typical mishaps, accidents, equipment damage or post installation failures resulting from mistakes in design, manufacturing and construction, as well as improper storage, handling and installation procedures of the equipment covered in Part 1. GENERAL Certain mistakes are repeated and common rules violated on almost all industrial equipment installations, with the inevitable consequences of additional cost, construction delays and aggravation of all parties involved. The most common failures are in the following areas: Cleanliness of all components during installation and later in operation. Adherance to manufacturer' s recommendations and tolerances for equipment installation. Comprehensive, properly identified installation and maintenance records. Handling of the components. Adequate tooling and auxiliary equipment in working order. An inoperable hydraulic power unit for torque wrench or for jacking of the mill, or faulty crane can be a very costly proposition. A special area in comminution circuits are wear components. Apart from the mill liners, the wear components such as, feed chutes, rock boxes, mill trunnion liners, discharge sumps, etc. are designed to the best theoretical configuration, based on experiences in similar installations. However, each process is different to a various degree, mainly because of various types of ores and grinding requirements. Consequently the first generation of wear components is very seldom the ideal one. Based on operational experience, the shape and material of wear components should be modified, until the optimum, most economical design is achieved. SHIPPING AND STORAGE Considerable damage to the equipment can be done by careless packing, shipping or storage.

Jan 1, 1982

By Allan D. Taylor

INTRODUCTION From the designer's view, the installation starts with the first definition of the orebody, and progresses through a long and complex development. The design is affected not only by the characteristics of the ore, but by all of the personalities and events of the project during its development. The following discussion attempts to touch on the most important aspects which define the context in which the designer must work in apply the do's and don'ts. That context is the basis of the viewpoint. WHAT CAN GO WRONG The Project Is Going Over Budget This is a common and serious concern to the plant designer. The Project Falls Behind Schedule Another common and disturbing condition with which the plant designer must cope. Some Equipment Fails to Perform This can be due to either faulty equipment or operating deficiencies. It can be the result of a wide variety of causes, but the designer will be an interested party in the search for the cause and the cure. The Plant Isn't Flexible Enough Sometimes a plant will handle some or even most of the ore satisfactorily but is unable to treat another type properly. This can be a significant problem. An example might be a case where low capacity of a cyclone feed pump makes it impossible to accompany an increase in grinding mill throughput with a corresponding increase in dilution water. This could lead to an increase in cyclone feed density, and a loss in product grade or a limit on the plant capacity. Spillage And Cleanup Are Excessive This is one of the most common and annoying defects in metallurgical plants, and one for which the designer can rarely delegate blame. Maintenance Is Excessive Another common complaint in new plants, and also one for which the dedesigner must accept most of the responsibility.

Jan 1, 1982

By Christopher J. Bise

Introduction In August 1977, the federal Surface Mining Control and Reclamation Act was signed into law. It stated that: "The Congress finds and declares that because of the diversity in terrain . . . and other physical conditions in areas subject to mining operations, the primary governmental responsibility for developing. authorizing, issuing, and enforcing regulations for surface mining and reclamation operations subject to the Act should rest with the States." Section 516 of Title V (Control of the Environmental Impacts of Surface Coal Mining) of the Act deals with the surface effects of underground coal mining operations. "Each permit issued under any approved State or Federal program pursuant to this Act and relating to underground coal mining shall require the operator to adopt measures consistent with known technology in order to prevent subsidence. causing material damage, to the extent technologically and economically feasible, maximize mine stability, and maintain the value and reasonable foreseeable use of such surface lands, except in those instances where the mining technology used requires planned subsidence in a predictable and controlled manner: Provided, that nothing in this subsection shall be construed to prohibit the standard method of room and pillar mining." This section raises many questions. Precisely what is the "reasonably foreseeable" future as far as land use is concerned? And what is the "standard method of room and pillar mining"? The first part of the paragraph seems to rule out longwall mining, but isn't longwalling a "predictable" manner of "planned subsidence"? Does the Act take into account variations among mining methods in differing regions or coal seams? With these questions and the need to comply with the Act's provisions in mind, many states may turn to the Pennsylvania Bituminous Mine Subsidence Act of 1966- the only comprehensive subsidence act passed by any state-as a model for their own programs. Thus, it is very important to evaluate Pennsylvania's Act to see whether its basic assumptions can accommodate national application. This paper will note the Subsidence Act's provisions and guidelines, briefly analyze the current state-of-the-art in subsidence damage prevention and control, and list several recommendations for altering the Act's application guidelines for different mining areas.

Jan 1, 1982

By Richard Addison, Ronald O. Cranor

Tailings dam construction and operation of Rosario Dominicana's gold/silver mine in the Dominican Republic is described. Impoundment of 8.5 kt/d of cyanide-process tailings is required in an intensive agricultural area which is also an earthquake and high rainfall zone. The earthfill embankment dam, incorporating internal gravel drains, is described together with methods of construction used. Methods of tailings transport, solution reclaim, and runoff water diversion that have evolved are discussed.

Jan 1, 1982

By Fuad S. Maayeh, Robert J. Evans, Paul M. Yavorsky

A description and capabilities of the Mine Roof Simulator at the Pittsburgh Mining Technology Center is illustrated for testing longwall roof support equipment. This unique Mine Roof Simulator has the capacity to exert 3 million lbs. of compressive force vertically and 1.6 million lbs. of force horizontally to simulate loads on hydraulic supports typically found in longwall mining. The supports that undergo testing are instrumented with strain gauges and photoelastic coatings such that critically strained areas become readily apparent. These critically strained areas are redesigned or retrofitted with appropriate reinforcement and retested. A data base will be accumulated from several support designs that will lead to an optimized design that will have the potential to reduce downtime by malfunctions of supports and thus increase productivity. A typical test procedure and analysis is given for a two leg 350 ton shield along with a description for placement of strain gauges, displacement gauges, and hydraulic pressure monitors for critical sites.

Jan 1, 1982

By Vince Poxleitner, John Delaney

Introduction In the mining industry, comminution typically begins in the mine with a blast of explosive to break rock so that it can be handled by the avail- able equipment. Though the breaking of the rock is essential for material handling in the mine and plant, this is not the only reason for ore reduction in the mineral industry. Comminution is primarily required to liberate minerals from ore so that they can be concentrated into valuable products or to prepare minerals, such as talc, for market as mined. The size of the equipment used for comminution ranges from small to massive. Regardless of equipment size, the power required to reduce the rock is a major expense. Years ago, mineral deposits could be mined more selectively and required less grinding to produce saleable products. However, as richer deposits were depleted, it has become necessary to mine low-grade deposits, with the valuables dispersed throughout the rock. Comminution equipment evolved in physical size and capacities to meet the new mine and process requirements. A modern, modestly sized mining operation, with a capacity of 25.000 TPD may use crushers two stories high weighing over a million pounds, SAG mills 36 feet in diameter driven by dual motors putting out 10.000 horse- power, and ball mills over 16 feet in diameter . Because of the increasing size and weight of modern equipment, the builder is faced with the problems of erecting massive foundations and field assembling equipment on these foundations. As equipment costs and plant construction costs increase, builders are finding that owners are asking for more detailed progress and cost data. Comminution construction projects are generally classified as grass roots plants or expansions or modifications to existing plants. It is estimated that 60-702 of the jobs involve existing plants. Today ' s costs for construction of small, new comminution plants can reach tens of millions of dollars; larger plants can cost hundreds of millions of dollars. Modifications, on the other hand, usually run from a few thousand to several million dollars. Though many problems are common to the construction of both new plants

Jan 1, 1982

By Nicholas J. Palethorpe

BACKGROUND Before addressing the above topic in any detail, it is pertinent to provide some background on Australia for those people who have not been there or who have a limited knowledge of our continent. Australia is approximately the size of the continental U.S.A. (excluding Alaska) covering an area of approximately 7 million square kilometres. It has a very dry climate which has led to a concentration of people in major cities scattered around the continents perimeter. Australia's population is currently approximately 15 million. Of the work force of 6.3 million, 72% work in tertiary industries, 20.2% in manufacture, 6.5% in agriculture and 1.3% in mining. Agriculture accounts for 46% of exports, mining for 31% and manufacturing for 23,. Economic activity is based on:- Agriculture This is capital intensive and covers extensive areas and is reliant on low cost farming. A.range of foods and fibres are produced with over 70% of production being exported. Such products are of course subject to the usual vagaries of world market demand and market access, particularly in regard to the operation of trade blocks such as the E.E.C. Mineral Resources A wide range of minerals and an abundance of iron ore, coal, gas and uranium resources provide an increasing volume of exports. However, Autralia's oil resources at present only supply approximately 70% of local requirements. Industry This is diverse and encompasses the processing of agricultural products and mineral ores as well as helping to supply the consumer and capital goods needs of the whole community. However, the small scale of local markets, the geographic isolation of Australia and relatively high wage costs have limited the scale of Australia's industry. Advanced technology has overcome some of these difficulties and high tariff and import quotas protect local producers from the full force of international competition. In 1980/81 Australia's Gross Domestic Product amounted to $130 billion with approximately 24% of this being devoted to investment. In the past decade Australia has experienced inflation rates ranging from 5% to 17% and only modest real growth rates ranging from 0.4% to 5% per annum. We have also experienced, as have many other industrialised nations, continuing wage and price increases. Unemployment presently stands at 6%. MINERAL DEVELOPMENT As the above figures indicate, Australia's continuing prosperity is very dependent on the mineral and agricultrual sectors of our economy. The dependence on these sectors is highlighted by the table below which indicates our position in a global context. [Australian Production of Minerals in a World Context Western World % Total Western World Position Mineral Production 1980 1st Rutile 75 Ilmenite 31 Zircon 70 Bauxite 36 Iron Ore 11 Tungsten 14 2nd Lead (Conc.) 15 3rd Manganese Ore 14 Brown Coal 11 (1979) Zinc (Conc.) 10 4thSilver (Conc.) 10 Nickel 6 5th Tin (Conc.) 5 6th Black Coal 5 Gold 2 Source: Mining Annual Review 1981] The total value of all mineral and fuel exports in 1980/81 is estimated at $5.9 billion. This prominence in the world mineral production has largely been achieved in the last 15 - 20 years. In fact, in the early 1960's, Australia had only 2 major mining export centres, Broken Hill in New South Wales and Mt. Isa in Queensland. This growth is highlighted by the fact that in 1963, for example, we exported only 9 tonnes of iron ore and less than 4 million tonnes of coal. In 1980/81 we exported 75m. tonnes ',of iron ore (valued at $1,117m.) and 47m. tonnes of coal valued at $1,965m.). The growth in our mineral industry has come about because of a number of factors. Abundance of Mineral Resources We are particularly well endowed with mineral resources, as indicated below.

Jan 1, 1982

By Don Rose

In the USA the cost of steel ribs for tunnels approximates $100 million each year. European practice has long since abandoned heavy steel ribs for tunnel support, and tunnel coats in Europe (normalized for wages) are about half the costs incurred in the USA. A feeling has existed for some time that the USA practices of supporting tunnels with heavy steel ribs have been overly conservative. The USA practice is based on rock load coefficients by Karl Terzaghi. In 1946, Karl Terzaghi published a tunnel rock classification system (Terzaghi, 1946), with the rock loads on tunnels predicted for each class of rock. No data on real rock loads were presented by Terzaghi and his rock load coefficients may have been largely intuitive. His classification system and associated predicted rock loads have been widely used in the USA. Each rock class, taken from Terzaghi's classification system, is assumed to generate loads of loosened rock resting as dead load. The dimensions of the loosened rock are described by rock load coefficients multiplied by the tunnel diameter. The resulting rock loads are used by design engineers, contractors and agencies to size supporting steel ribs. Terzaghi clearly stated that he had conservatively assumed high rock loads for his classes 4, 5 and 6 to take a presumed effect of groundwater into account. If the tunnel was not affected by ground- water, Terzaghi stated those rock loads should be reduced by 50 percent. Twenty two years later Tor Brekke (1968) wrote a paper clearly showing that based on observation of more than 250 tunnels groundwater does not affect tunnel rock loads. In 1969, Deere, et al., published measurements made on a number of tunnels, and a well-known curve was drawn by Deere to illustrate Terzaghios coefficients graphically. Deere's text stated that Terzaghi's predicted rock loads were too high and should be reduced. Cording and Deere (1972) more recently published data indicating that very large real rock caverns and chambers were being successfully built using rock bolts, which can take only a very limited rock load, thus indicating that real rock load is much smaller than Terzaghi or even Deere predicted.

Jan 1, 1982

By W. N. Poundstone, P. C. Thakur

Introduction Horizontal drilling in coal mines is a relatively new technology. The earliest recorded drilling in the United States was done in 1958 at the Humphrey mine of Consolidation Coal Co. for degasification of coal seams. Spindler and Poundstone experimented with vertical and horizontal holes for several years. They concluded in 1960 that horizontal drilling in advance of underground mining appeared to offer the most promising prospect (for degasification) but effective and extensive application would be dependent upon the ability to drill long holes, possibly 300 to 600 m, with reasonably precise directional control and within practical cost limits (Spindler and Poundstone, 1960). Mining Research Division of Conoco Inc., the parent company of Consolidation Coal Co., began a research program in the early 1970s to achieve the above objective. The technology needed to drill nearly 300 m in advance of working faces was developed by 1975 and experiments on advance degasification with such deep holes began in 1976. Preliminary results of this research have already been published (Thakur and Davis, 1977). To date nearly 4.5 km of horizontal holes have been drilled for advance degasification and earlier results were reconfirmed. In summary, these are: • The greatest impact of these boreholes was felt in the face area where methane concentrations were reduced to nearly 0.3% in course of two to three months from original values of nearly 0.95%. • The methane concentration in the section return reduced to 50% of its original value immediately after the boreholes were completed, indicating a capture ratio of 50%. • The total methane emission in the section (rib and face emission plus the borehole production) did not increase but rather gradually declined with time. • Initial production from 300 m deep boreholes in the Pittsburgh seam varied from 3 m3/min to 6 m3/min but then slowly declined as workings advanced inby of the drill site (well head) exposing a larger surface area parallel to the borehole. Encouraged by these results, it was decided to design a horizontal drilling system that would be mobile and compatible with other face equipment. A mobile horizontal drill can be divided into three subsystems: the drill rig, the drill bit guidance system, and borehole surveying instruments. The drill rig provides the thrust and torque necessary to drill 75- to 100-mm diam holes up to 600 m deep and contains the mud circulation and gas cuttings separation systems. The drill bit guidance system guides the bit up, down, left, or right as desired. Borehole surveying instruments measure the pitch, roll, and azimuth of the borehole assembly. Additionally, it also indicates the thickness of coal between the borehole and the roof or floor of the coal seam. Thus, it becomes a powerful tool for locating the presence of faults, clay veins, sand channels, and the thickness of coal seam in advance of mining. In recent years, many other potential uses of horizontal boreholes have come to light, such as in situ gasification, longwall blasting, improved auger mining, and oil and gas production from shallow deposits. The purpose of this paper is to describe the hardware and procedure for drilling deep horizontal holes. The Drilling Rig [Figures 1 and 2] show the two components of the mobile drilling rig: the drill unit and the auxiliary unit. The equipment (except for the chassis) was designed by Conoco Inc. and fabricated by J. H. Fletcher and Co. of Huntington, WV. The drill unit. It is mounted on a four-wheel drive chassis driven by two Staffa hydraulic motors with chains. The tires are 369 X 457 mm in size and provide a ground clearance of 305 mm. The prime mover is a 30-kw explosion-proof electric motor which is used only for tramming. Once the unit is Crammed to the drill site, electric power is disconnected and hydraulic power from the auxiliary unit is turned on. Four floor jacks are used to level the machine and raise the drill head to the desired level. Two 5-t telescopic hydraulic props, one on each side, anchor the drill unit to the roof. The drill unit houses the feed carriage, the drilling console, 300 m of 3-m-long NQ, drill rods, and the electric cable reel for instruments. The feed carriage is mounted more or less centrally, has a feed of 3.3 m, and can swing laterally by ± 17°. It can also sump forward by 1.2 m. The drill head has a "through" chuck such that drill pipes can be fed from the side or back end. General specifications of the feed carriage are: [ ] The auxiliary unit. The chassis for the auxiliary unit is identical to the drill unit but the prime movers are two 30-kW explosion proof electric motors. It is equipped with a methane detector- activated switch so that power will be cut off at a preset methane concentration in the air. No anchoring props are needed for this unit. The auxiliary unit houses the hydraulic power pack, the water (mud) circulating pump, control boxes for electric motors, a trailing cable spool, and a steel tank which serves for water storage and closed-loop separation of drill cuttings and gas.

Jan 1, 1981

By William I. Rau

This presentation will examine the role commercial banks will be expected to assume in financing international minerals projects, including a discussion of various financing techniques such as project loans, production loans, and production payments. A discussion of the necessity for completion guarantees, finalized sales contracts, reserve evaluations, management contracts, and marketing undertakings in conjunction with financing availability are also included.

Jan 1, 1981

The Western World's gold reserves now exceed 23,000 mt (750 million oz), 65% of which exist in South Africa. Although several major mines are reducing production or closing because of depletion of reserves, new mines or expansions of existing mines are coming on-stream which will maintain an annual production of 684 mt (22 million oz) of gold well into the 1990s. These new operations by the South African mining industry represent the largest expansion since the opening of the Witwatersrand gold fields in 1886. Included in three new mines being opened is that of Anglo American Corporation's Elandsrand plant, their fir& new gold venture in South Africa in seventeen years. Current average grade of South African mines is 8.2 g Au per mt (0.24 oz per st); and while the cost of the Elandsrand 135,000 mt (149,000 st) operation, including mine development, was about $314 million, it is estimated that the cost of a comparable operation started today and completed in the mid-1980s would be of the order of $480 million. New mines to exploit low-grade ore bodies are, therefore, likely to be few in number, and further expansion will undoubtedly be in the form of extensions to existkg operations where cash flow can be used to finance development. The authors' first monograph, "Gold and Silver Cyanidation Plant Practice," devoted a section to South African cyanide plant operation; and it is believed that this new volume would not be complete without a description of Elandsrand, South Africa's newest gold plant. The Elandsrand mine is adjacent to Anglo American's Western Deep Levels on the Far West Rand. The decision to go ahead with the development was taken in mid-1974 from the results of exploration drilling carried out over a period of .lo years. Results of 17 bore holes and 68 intersections of the Ventersdorp Contact Reef had indicated a gold-.bearing reef less than one meter thick at a depth of 1,800 to 3,000 meters (5,900 to 9,840 ft). Preliminary studies indicated a mine of 900 km (560 miles) of underground workings would yield 725,000 kg (23. 3 million oz) of gold from 60 million mt (66 million st) of ore to be milled over a period of 34 years. Eventually, when the mine is in full production, the total hoisting capacity will be 300,000 mt per month (331,000 st) for a milling capacity of 225,000 mt per month (248,000 st). The Elandsrand surface facilities have been built on a low range of 0 hills to take maximum advantage of the 10 slope in transporting ore

Jan 1, 1981