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By John B. Draper

The 1980 Mine Dewatering Act was enacted to protect water rights and to allow mine dewatering to proceed where impairment of a water right might have otherwise created a bar to mine development. In New Mexico, new appropriations for beneficial use are subject to the State Engineer's jurisdiction and are granted only upon a showing of non-impairment. Before 1980, mine dewatering was not considered a beneficial use, nor was it considered waste. The Act brings mine dewatering under the jurisdiction of the State Engineer, makes it subject to the same requirements as an application for appropriation for beneficial use, grants the right to replace the water of users whose rights would be impaired by mine dewatering without a plan of replacement, and extends the right of replacement to non-mining appropriations of water for beneficial use, Application of the Act requires determination of the definition of impairment (the threshold of significant impact on existing water rights), hydrologic evaluations to determine the impact of the proposed dewatering, and preparation and execution of a plan of replacement to avoid impairment of existing rights.

Jan 1, 1983

By Michael P. Evans

Traditionally in coal processing jigs have been used to clean the coarse coal fraction, the +3/8" or +1/4" material. Today with the advent of modern fine coal jigs in the United States, its place was moved from the coarse to the inter- mediate coal circuit, the 3/8" x 100 mesh. The most economical coarse coal circuit to build and operate is a heavy media bath circuit. The following table summarizes the cost per raw coal ton processed for a coarse coal jig circuit, and a coarse coal heavy media bath circuit. The flowsheets used to compare these two circuits are shown in Figures 1 and 2.

Jan 1, 1983

By Thomas Hard

A description is given of a new facility processing blast furnace slag into a high quality cementitious material to be used as an ingredient in concrete for general construction purposes. A brief history of the process is given, followed by a detailed discussion of the water granulation system and the methods used to transport and dewater the granulate. Environmental advantages of handling slag away from the blast furnace by water granulation are included.

Jan 1, 1983

By Samuel W. Woods

The Tacoma, Washington plant is one of six plants in the United States Gypsum Company's Acoustical and Mineral Fiber Division. The Tacoma facility was acquired in 1959 along with six other mineral wool plants from the American Rock Wool Company. Originally, the Tacoma plant was built as a carbide plant during the Second World War and after that was converted and operated as a mineral wool plant by several insulation companies. Through these early years, the use of raw materials at Tacoma consisted primarily of slags along with small percentages and various combinations of silica (in various forms such as gravel), limestone and basalt. These raw materials were melted in cupolas using coke as the heat source. Raw material usage and types as well as mineral wool production methods and equipment remained without major changes for many years.

Jan 1, 1983

By Richard R. Klimpel

The first part of this two-part article summarizes the result of a 10-year, multimillion dollar research and plant testing program involving operating mining companies throughout the world. The program was aimed at developing a better understanding of the influence of slurry rheology on the performance of mineral/coal grinding circuits. Part 1 presents the basic concepts identified, including typical laboratory results showing the influence on grinding behavior of controlled changes in percent solids, particle size, slurry temperature, and viscosity control chemicals. Part 2, in January, will illustrate typical industrial scale test results on both open and closed circuits using the concepts presented in Part 1. Special emphasis will be placed on identifying some industrial operating implications of controlling rheology by different methods. Introduction The industrial-scale practice of wet grinding minerals and coals in tumbling media mills (ball, rod, and pebble) is well-known to operating mineral processing engineers and plant design personnel. Over the last century, considerable experience and data has been collected, correlated, and put into rules or guidelines for successful circuit design and operation. Typical factors influencing circuit throughput that have been analyzed in some depth are mill diameter and length, grinding media size and loading, feed and product particle size, mill power use, and the interaction of classifier type and efficiency with the grinding device. Until recently, knowledge of slurry rheology influence on large scale grinding circuit performance has been limited. Even today slurry rheology effects are essentially ignored in plant design. Indeed, in most plant operations only qualitative guidelines are followed. For example, too thick a slurry causes throughput losses and too thin a slurry uses excessive water or causes water handling problems such as pumping limitations. A search of published literature and numerous discussions with experienced plant operating personnel has shown an awareness that changing the percent of solids in the mill influences grinding or the response of grinding involving fine feeds versus coarse feeds. However, most the work identified relative to rheology effects in mineral/coal grinding was qualitative. Even in the few studies that were more quantitative, the scope of the work was usually too narrow to draw general conclusions. Also, the detailed rheological characterization tied to observed breakage and the combination of laboratory to industrial-scale testing that is required to develop a broad understanding of any factor influencing grinding had not been done. In this environment, this detailed program began in 1967. It had three distinct goals: • To develop a basic understanding of slurry rheology influence on breakage characteristics in the laboratory. • To test general rheology concepts developed in the lab on the industrial scale. • To develop a commercially viable chemical approach to controlling slurry rheology that would lead to the use of chemical grinding additives or grinding aids. The goals have been met, at least in part, this year. A small fraction of the extensive laboratory and plant results have been made available in published literature. Much of the research program dealt with identifying and developing chemical grinding aids, but a lot of useful and practical information on percent solids, particle size, and slurry temperature influence on grinding circuit performance also was collected. The purpose of this article is to present a clear and concise sum¬mary of the results of the entire program. The importance of rhe¬ology control in grinding circuit behavior will be demonstrated using a series of carefully per¬formed industrial scale experi¬ments (both open and closed cir¬cuits) that have not yet been reported in general literature. Mining companies participating in the test program on a proprie¬tary basis have found the informa¬tion in this article to be useful in better understanding and improv¬ing circuit performance. Viscosity Effects in Grinding Studies In this program&apos;s previous labo¬ratory studies, it was shown that there is a consistent pattern of change in specific rates of break¬age of both mineral and coal slur¬ries as slurry fluidity changes. Using the net production rate of material smaller than some spec¬ified size-for example, kg/hr of <75 µm (200 mesh)-as an index of mill production in a standard batch mill test (with a given feed material, feed size, mill, and mill conditions such as constant time of grind), the following facts were established (see Fig. 1): • The normal range of low den¬sity, low viscosity slurry (region A) gave no variation in mill produc¬tion. The measured rates of break¬age exhibited normal first order grinding. • Grinding of a somewhat higher viscosity slurry (region B) could give increased production. The higher viscosity was obtained

Oct 12, 1982

By Paul D. Tomlingson

Maintenance costs in the mining industry often account for as much as 18-20% of total operating costs and with the cost of labor and materials rising, they threaten to become an even larger percentage of the total. Yet, without an effective maintenance program costs can soar beyond what they would be without a program. In other words, when production equipment is down, there is no production and no product to sell in the marketplace. This cost of downtime in lost product far exceeds the actual cost of maintenance, which is defined here as labor and materials. Thus, mine management must have an effective maintenance program to avoid downtime and meet production targets. Attaining an Effective Maintenance Program Many mine management and operations supervisors believe that an effective program is a function of how hard they push maintenance. Yet, when vital production equipment is inoperable and production is lagging, no amount of pushing helps. In actuality, maintenance has little control over its own destiny and needs support from other departments to deliver good service. Success of the maintenance program depends on gaining control of those factors that directly influence maintenance. Consider the following. Organization-The maintenance organization must be structured for maximum responsiveness to production needs. Unfortunately, some needs are immediate and many are unknown in advance. The maintenance department has little control over them. These outside influences limit the department manager&apos;s ability to control his own organizational structure. Preventive maintenance procedures-Routine lubrication, equipment inspection, minor adjustments and the like are controlled mostly by maintenance. Yet, scheduling preventive maintenance depends also on the availability of equipment controlled by other departments. Planning-The purpose of planning maintenance jobs is to ensure that the best use is made of maintenance resources. If the production department creates an environment of running repairs and emergencies, there can be little planning. Even well-planned jobs will suffer if there is less than full cooperation in carrying them out. As a consequence, the maintenance department is not blocked from planning, but the value of its planning is reduced. Scheduling-Maintenance scheduling should be a joint effort. Although maintenance does the planning, production must agree to the scheduled maintenance of its equipment. Workload-As a service organization, the maintenance department has limited control over its workload because it must consistently respond to other department&apos;s demands. At best, maintenance controls only the fixed portion of its workload-utility work, janitorial service, maintenance shop work, and assigned repetitive and preventive maintenance duties. Unscheduled and emergency work are initiated by operations. Major maintenance actions require full cooperation. Labor productivity-The effective use of labor is tied to other key functions of maintenance. These include organization, preventive maintenance, planning, scheduling, and emergency work. An area type organization, for example, can often respond more quickly to immediate needs than a centrally controlled maintenance group. Yet, area maintenance can result in lower labor productivity unless tight control is exercised. One of the advantages of a good "detection-oriented" preventive maintenance program is early discovery of problems and better opportunity to schedule corrective work in advance. Under planned work conditions, use of labor can be more productive. Complete planning and scheduling can minimize time spent on each job, increase effectiveness of supervision, and improve labor productivity. Finally, if emergency work is minimized, there are fewer delays, less lost time, better coordination, and more productive use of labor. While labor productivity is an important factor in carrying out maintenance, it also is influenced by outside factors. However, few realize the impact of being able to improve maintenance productivity. By improving the productivity of 30 men from 30% to 40%, maintenance could accomplish the same work value as if it had added 7.5 men working at 40% productivity. 30 (1800) (40%) = 21,600 man-hr/yr 30 (1800) (30%) = 16,200 man-hr/yr Difference = 5,400 man-hr/yr 1800 (40%) 7.5 men Leadership-The maintenance department can have significant control over its own leaders, the front-line foremen, but they must

Jan 12, 1982

By Paul L. Russell

Numbers, arithmetic, mathematics. Where did it all come from? Who needs it? We all do, but many school children would not agree. Engineers, physicists, accountants, tax collectors, and most of the general public are well aware that modern society in large part is founded on mathematics and could not exist without it. Mathematics developed over thousands of years as part of the everyday life of man. No one area, tribe, or race can claim discovery. In fact, from the records that do exist, it is evident that many facets of mathematics were discovered independently of others who made similar discoveries. While proof may be lacking, the earliest concepts of mathematics may be some 250,000 to 300,000 years old. The first use of numbers as written records is unknown. However, a bone of a young wolf deeply cut with 55 notches-arranged in two rows, one of 25 notches, the other of 30-was found in Czechoslovakia. Dated to be about 30,000 years old, it is perhaps an early record of some kind of counting system. It is assumed that mathematics was developed as an answer to man&apos;s practical needs, but anthropological studies suggest that the art of counting may have developed in connection with the needs of primitive religious ceremonial rites. Fingers probably were first used to designate sets of from one to five objects. Using both hands, up to 10 items could be indicated. As civilization developed, so did the need for more flexible systems to record items of trade, measure land, and figure taxes. Aristotle noted that the development of the decimal system comes from the fact that most people are born with 10 fingers and 10 toes. In spite of this obvious fact many early civilizations used binary, ternary, and quinary systems while vigesimal systems (with 20 as a base) and even sexagesimal systems (with 60 as a base) were used by others. A form of writing was in use in both the Mesopotamian and Nile valleys as early as 3000 to 4500 B.C. In Mesopotamia, wedge-shaped marks were impressed upon soft clay tablets that were hardened in ovens or by the sun. Many thousands of such tablets have survived. When the tablets were finally deciphered, some were found to be records of items shipped in trade, inventories, tax accounts, and mathematics exercises for teaching. Mesopotamia is also the source of an interesting board game dating back to about 2500 B.C. Its buttonlike men and triangular dice were apparently used with squares of shell, inlaid with lapis lazuli and red sandstone. Unfortunately, rules of play were not found. In Egypt, record preservation was somewhat better. Discovery of the Rosetta Stone in 1799 eventually led to deciphering the Egyptian hieroglyphics that included a numbering system at least 5,000 years old. These records show a competence in counting and numbering. A calendar of good accuracy may have been in existence as early as 4,200 years ago. Mathematics, as practiced today, developed when the Greeks added logic and proof to arithme-

Jan 12, 1982

By Thomas O’Neil

Part 2 of this article continues with a discussion of features that distinguish contemporary investment analysis in mining from earlier methods. Part 1 traced the evolution of evaluation methodology from the traditional and discounted cash flow methods to the present. Quantitative investment models of the past 20 years played an important role in mine evaluation, but a new integrated approach to mine investment decision-making is now developing because of growing economic, technical, and political uncertainties. One of those uncertainties -inflation-was discussed in Part 1. Increased Risk At a time when mineral production technology and analytical evaluation tools have never been more sophisticated, it may seem anomalous to claim that mining ventures are riskier. Whereas technical risk has, indeed, been notably reduced, business risk the chance of a major loss due to market factors-has increased. This has been caused by two factors: the rapidly rising capital requirements of new projects and increasingly unpredictable future economic conditions. These difficulties are compounded by the long lead times of large, new mining projects. Rising Capital Requirements A $100 million investment is no longer considered to be a large mining project in most cases. For a large metal mining project, the total cost of the concentrator alone can exceed $100 million. Amoco Minerals&apos; Thompson Creek molybdenum mine being developed in Idaho will cost over $350 million, for a relatively modest sized (23-kt/d or 25,000-stpd) ore operation with no extraordinary features. For a major grass roots copper operation producing blis¬ter or refined copper, the capital requirements are billions of dollars, not millions. Project costs are higher for two reasons. One, the projects themselves are larger; and two, the capital cost per unit of production is rising rapidly. Projects are larger because lower grade ores, yielding smaller margins, must be mined in greater volume-particularly in view of the high fixed costs of modern technology. When analysts contemplate any capital project, an important consideration is the minimum economic size of the facility. This is the smallest size that can be built and still be competitive on a total unit production cost basis. In the conventional copper smelting business, for example, a production rate of at least 91 kt/a (100,000 stpy) of blister copper is about the absolute minimum for reducing unit fixed costs to competitive levels. Clearly, many variables affect the minimum economic size of a mining facility, but with few exceptions that size continues to grow. Unit capital costs of new mining projects also are continuing to rise. The accompanying table shows that the capital costs in primary copper production have risen faster than the cost of living. Of particular note is the capital charge of over $1.70/kg (77411b) required for a new, fully integrated facility in 1981. Thus, the mid-1982 copper price would not even cover the cost of capital for a new copper producing complex without considering the direct operating costs for such a facility. The breath-taking costs of new mining projects are caused by factors such as increasingly complex technology, the rising social costs of creating attractive living and working conditions for employ¬ees, and the expenditures re¬quired for environmental protec¬tion. For whatever reasons, how¬ever, unit capital costs in mining continue to exhibit staggering growth rates. Future Economic Conditions Risk is not only a function of the size of the potential loss-an im¬portant measure of which is the capital intensity of mining dis¬cussed above-but also of the like¬lihood of incurring the loss. It is here that the ever increasing lead times of mining projects and the glaring limitations of economic forecasting are so important. In comparison to nearly all other in¬vestments, mining has more capi¬tal at stake for a longer period of time before commercial uncer¬tainty is resolved by distant eco¬nomic conditions that are subject to high forecasting errors. A sobering example of the pre¬ceding points occurred with the Lakeshore copper mine in south¬ern Arizona that Hecla Mining Co. undertook to finance and manage in 1969. The project was a joint venture of Hecla and the El Paso Natural Gas Co. and included two mines-one producing oxide ore and a second in the sulfide zone¬and a complex processing facility producing both electrowon cop¬per cathodes and copper precipi¬tates. The project originally was

Jan 12, 1982

By Katzer R. Klimpel, J. Sewell

Dr. Roussey Roussev The use of chemical additives on grinding is of significant importance considering the high energy consumption of grinding processes. My research indicates that the dispersant approach explains the effects, in this particular case of wet grinding. Further, the dispersant approach combined with torque measurements give the possibility of clarifying the mechanisms involved when using grinding aids. I find the conclusions derived from the data obtained to be correct and useful for grinding. In general, I agree with the explanations. However, I would like to discuss several additional points that I consider to be important, and in the same time to mention some of my own results from investigations similar to those presented in the study under discussion. The "bed volume concept" and the change of slurry viscosity explain adequately the data plotted on fig. 3, in conjunction with Figs. 1 and 2. However, the significant increase of the average torque in the case of 83% solid with XFS-4272 introduces the necessity of establishing the optimum of percent solid when dispersant is used. For example, the optimum percent of solid for different materials varies. One of the reasons is the material&apos;s mass density. On the other hand, it is necessary to determine the concentration of the chemical used. Because of this, it would be interesting to know how the cited concentration was selected. The supportive discussion and verification by Dr. Roussev, with results similar to that of the paper, is appreciated. I will try to answer the additional questions he has raised. To begin with, the mill was fitted with six lifters of approximately one-quarter inch height. There has been extensive lab and plant level work to understand downstream influences of using dispersants like XFS-4272*. In sulfide ore processing, which is the area in which most industrial scale testing has been performed with this approach, neutral to positive influences have been observed. For example, positive effects (e.g., increased recovery) have been noticed in flotation operations involving ores that have a tendency to produce excessive slimes upon grinding. (1) Also, the use of a dispersant has been shown to demonstrate a positive influence on classification by improving the sharpness of separation and preventing a decrease in d50 value that usually accompanies increasing flow rates to classifiers.(2) The biggest potential downstream problem is in thickening, which at the dosages involved, has not been a problem in plant scale usage. The commercial price of dispersants like XFS-4272 is quite variable depending on source, concentration, etc, but a typical cost of XFS-4272 to achieve a 10% increase in throughput in industrial mills has been between 20 and 35- US per ton of feed ore (1981).

Jan 12, 1982

By J. D. Miller, R. J. Smith

Earl C. Herkenhoff Publication of the article "The Flotation Behavior of Digested Asphalt Ridge Tar Sands" by R.J. Smith and J.D. Miller has confirmed and again spotlighted a most significant and important development in the field of tar sand and heavy oil mining. This is the ability to recover 95 % of the bitumen in dry tar sands by a hot water process. The initial investigation by Miller and Sepulveda in early 1978, "Separation of Bitumen from Dry Tar Sands," was the first blockbuter. It is disappointing that there has been so little scientific and industry ackowledgement that the authors laid to rest the long entrenched belief that the sand grains had to be "water wetted" for a hot water process to be applicable. Dr. Miller and his researchers at the University of Utah used slightly different mineral dressing terminology in describing their process but it is essentially the old, established technique of high solids attrition scrubbing at elevated temperatures with a conditioner or modifier, followed by dilution and froth flotation. Similar techniques were described in detail for other nonmetallic minerals in the mid-1940s by Stuart Falconer of American Cyanamid Co. The authors used a 15-minute "scrub" period (or in their terminology "digester step") at 73% solids and 95°C (203°F) in a 0.3 m solution of sodium carbonate -about 4 kg/t (8 lb per st) of tar sand. Flotation was at 10% solids. Obviously, the scrub is an expensive step with respect to energy input but the high recovery of bitumen appears to justify it. Two basic questions then arise: • What are the effects of shorter scrubbing time, lower temperature, and less sodium carbonate? • Would a two-stage approach be advantageous? That is, could you get the major proportion of the bitumen with a mild scrub and apply the high power and temperature only to the refractory portion? These variables should be evaluated. Apparently, all results were only for rougher flotation. What would the grade and recovery of bitumen be if multiple cleaner flotation steps were employed? We must concede that a 60-62% grade of bitumen leaves considerable room for upgrading. Finally, it should be noted by all executives who approve funds for heavy oil recovery schemes, most of which are variations of in-situ methods, that mining can yield a 95% recovery of bitumen. That is correct, 95%. Imagine what that does to the total barrels recovered from a heavy oil resource compared with the scrawny 30-35% maximum recovery we are getting now. The conclusion-let&apos;s mine heavy oil and tar sands. Reply by R.J. Smith and J.D. Miller We, too, share Mr. Herkenhoff s enthusiasm for the mining of tar sands-heavy oil and continue the development of related processing technology. Specifically, it will be noted that by appropriate control of bitumen viscosity in the feed (probably the most important variable for successful separation) the recovery can be accomplished at low digestion temperature and low addition of alkali. A 91 t/d (100 stpd) pilot plant based on our technology is now being operated by Enercor in Salt Lake City (Hatfield, Oblad, and Miller, 1982). In these same pilot facilities, rougher concentrates containing more than 80% bitumen on a dry basis are being produced from Asphalt Ridge Feed. However, the processing of certain other tar sands results in incomplete digestion of bitumen/sand aggregates as discussed elsewhere (Miller and Misra, 1982). Such undigested aggregates are shown in Fig. 1. In this regard, it is intended that a recycle stream will be installed in the pilot plant to provide for redigestion of middling products. Further details regarding surface chemistry aspects of this tar sand technology have recently been published (Misra, Aguilar, and Miller, 1981). References Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Recovery of Bitumen from Oil Wet Tar Sands," Processing, Second International Conference on Heavy Crude and Tar Sands, Caracas, Venezuela, Feb. 7-17. Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Processing of Oil-Wet Tar Sands," Symposium, Rocky Mountain Fuel Society, Salt Lake City, Utah, Feb. 18-19. Miller, J.D. and Misra, M. 1982, "Hot Water Process Development for Utah Tar Sands," Fuel Processing Technology, Vol. 6, No. 1, April, pp. 27-49. Misra, M., Aguilar, R., and Miller, J.D., 1981, "Surface Chemistry Features in the Hot Water Processing of Utah Tar Sand, Proceedings, "Symposium of Separation Science and Technology for Energy Applications," Gatlinburg, Tennessee, May 5-8.

Jan 11, 1982

By Adrian C. Dorenfeld, John T. Oleksy

John D. Maefadyen Subject paper unfortunately has some serious flaws negating the usefulness of the paper. The authors claim that sulfur is the major source of production problems in cement kilns. This is not the case. Sulfur is not a problem as long as the mole ratio of sulfur to alkali oxides is less than, or equal to, 1. This is attributed to the sulfur preferentially combining with the alkali oxides and not acting as a clogging agent due to the nature of the pre-heater vessels. Where the mole ratio exceeds 1, many methods are available to eliminate or reduce the clogging problems such as using the preheater bypass or a precalciner with up to 100% kiln gas bypass. In non-preheater kilns, the presence of sulfates is hardly ever a problem anyhow. Thus, the level of sulfur in the fuel and raw material that might cause problems is not a fixed amount, but is predictable. The purpose of the paper is to discuss the economics of conversion of kilns in the Indonesian and Phillippine cement industries from oil firing to coal firing. This economic analysis has very little to do with the sulfur levels. Thus, the section of the paper on sulfates is actually rather meaningless. The economic analysis is also rather meaningless because the authors have failed to follow accepted economic analysis procedures by including interest charges. They have fallen into the trap of confusing financing with economic evaluation. When the accepted methods of economic evaluation are used, the return on investment increases to about 35%. In conclusion, the paper is not a meaningful contribution, and sadly, quite erroneous.

Jan 11, 1982

By Henry O. Ash

On June 16, 1982, Rio Blanco submitted a request to the US Minerals Management Service for a suspension of operations under its federal oil shale lease. The company also wanted a five-year delay in the requirement for further minimum royalty payments and a five-year extension of the primary lease terms of 20 years. The request was granted in late July in the midst of yet another slump in oil shale activity. Rio Blanco holds one of four Federal oil shale leases that were granted under the Interior Department&apos;s Prototype Oil Shale Leasing Program in 1974. That year the DOI offered for lease six federal oil shale tracts, two each in Colorado, Utah, and Wyoming. The leases in Colorado and Utah were granted for substantial bo¬nus bids as shown in Table 1, but the Wyoming tracts had no takers. In the eight years hence, no oil shale has been produced commercially. Indeed, the prospects for successful oil shale development have fluctuated widely, continuing a 60-year- old cyclical pattern in the fledgling industry. The prototype program was developed and initiated while this infant industry struggled to begin anew, without the benefit of any federal oil shale leasing regulations, or any history of federal oil shale leasing at all. Permanent regulations were not required because the effort was limited and designed to provide the foundation for any future leasing program. Section 21 of the Mineral Leasing Act of 1920, a Nov. 30,1973 Federal Register notice, and the leases themselves constitute the legal and regulatory framework for leasing and developing prototype oil shale tracts. The prototype leases contain some unusual provisions including installment payments of the bonus bids, credit of early development costs against payments due the government, adjustment of royalty rates according to regional crude oil price fluctuations, and unusually extensive and detailed environmental stipulations. Several of the provisions were intended to provide incentives for early development and financial penalties for failure to develop. The requirement for minimum royalty payments in lieu of actual production royalties beginning in the sixth year of the lease falls in the latter category. After the sixth year, the required minimum payment is increased east year through the 15th year by an increment equal to that due in the sixth year. The minimum royalty then remains the same through the final five years of the primary lease term. Minimum royalty is calculates on a different production level for each prototype lease, based on the quantity of 125 L/t (30 gal/st) shale estimated to be recoverable from. each tract by room-and-pillar mining. That mining system was selected for reference as the only proven extraction method for oil shale at that time (early 1970s) The minimum royalty (production) rate was calculated for each tract by direct comparison of its estimated recoverable 125-L (30-gal) resource to a hypothetical tract containing 1.9 Gt (2.1 billion st) of recoverable 125-L (30-gal) shale. For the hypothetical lease tract, the minimum production for the sixth year was calculated to be 3.2 kt/d (3,500 stpd), increasing by a like amount each lease year through the 15th to a daily production rate of 31.7 kt (35,000 st). Under this formula, the hypothetical lease tract would yield $16 million in minimum royalty payments over the 20-year primary lease term if there were no production, no development credits taken, and no adjustment of the royalty rate due to fluctuation of regional crude oil prices. The production rate of 31.7 kt/d (35,000 stpd) was a somewhat arbitrary figure that was considered, in the early 1970s, to represent a minimum size for a commercial oil shale operation. A production rate of 7.9 dam3/d (50,000 bbls/day) soon supplanted that smaller mine production figure as a rule of thumb for the minimum size for a commercial facility. The proportional relation-

Jan 11, 1982

By Thomas J. Neil, O&apos

Most analysts find that progress has been evolutionary in any technologic field. To be sure, a few discrete breakthroughs can usually be identified, but viewed in its entirety, the curve of technologic progress over time tends to be relatively smooth with few discontinuities. Even in those cases where a major scientific discovery is achieved, the rate of technologic progress is limited by the often surprisingly slow rate of commercializing the concept into usable products. Whereas discovery and invention tend to be discrete events, technical innovation is often a painfully slow process. In spite of overall gradual change, technologic progress in most fields, when viewed in retrospect, tends to reveal certain relatively homogeneous periods where little change is evident, separated by episodes of accelerated progress. Thus, open-pit mining over the past century has changed from predominately train haulage to truck haulage and is now experiencing a major increase in belt haulage. Ore reserve estimation is another field that fits the same pattern, and the history of mine evaluation lends itself to a similar analysis. Evaluating mine investment opportunities is a fascinating aspect of mining. The unique set of risks inherent to every mining project is particularly intriguing. Geologic risks are most obvious, since faulty ore grade and tonnage estimates are among the leading causes of mine failures. Wide swine&apos;s in mineral commodity prices are usually cited as another major risk in mining. Because any ore deposit is a finite resource and the miner has limited discretion in selecting a mining sequence, mines are generally at the mercy of notoriously fickle commodity markets. There is a tendency for many mine investment analysts to feel that mineral market uncertainties are unprecedented in severity. Of course, prices in other markets rise and fall also-in some cases as precipitously as with minerals. However, two other mining characteristics tend to compound this marketing risk. First, the preproduction development period for a new mine is characteristically long. Under extremely favorable conditions, a significant mine may be developed in as little as two years, but the norm is four to six years or more. Second, mining is among the most capital intensive industries, consistently ranking near the top among all industrial sectors in assets per employee, and near the bottom in annual sales dollars per dollar of assets. Thus, mine investors typically have large sums invested for a long time before the outcome of the venture is determined by notoriously unpredictable markets. This is not a business for the faint of heart, and the importance of sound investment decision making is obvious. The high risk and technical complexity of mining operations have combined to require greater attention to financial evaluation by mining engineers than by most engineers in other specialties. Nearly all early mining engineering textbooks dealt with problems in mine valuation in a detailed manner; and, today, the sophistication of capital investment analysis is high in the mineral industries. Traditional Mine Valuation Methods Although some evaluation process has no doubt accompanied nearly every mine development throughout history, a formalized quantitative approach first emerged in the last half of the 19th century with the establishment of academic programs in mining engineering. The philosophy and approach to mine valuation that evolved at this time were, with periodic minor refinements, considered the standard for nearly a century. Only after 1960 did major changes begin to occur. The traditional approach to mine valuation reflected the investment community&apos;s historic attitudes toward risk. Mines were generally considered too risky for debt financing, and virtually every new mine was financed from internally generated funds or new equity subscriptions. The investment evaluation methods that evolved focused on mining&apos;s higher risk relative to other

Jan 11, 1982

By J. Steenkamp, A. L. Hannaford, A. N. Jones

O’Okiep Copper Co. Ltd.’s 45-kt/month (49,600-stpm) concentrator at the Spektakel mine in South Africa is comprised largely of reconditioned equipment from the old O’Okiep mill, which operated from 1940-1975. When combined with modern approaches to layout, crushing, classification, and flotation, a simple-to-operate plant was constructed at a cost of only $3.2 million.

Jan 11, 1982

By Tom Skodack

Mine and tunnel contractors face a complex environment-one in which economic risks are high, operating costs grow ever higher, ore grades are lower or recovery more difficult, and civil construction projects are intensely competitive on a world-wide scale. Within the context of this environment, the risks and rewards of proper machine selection for rock excavation have become proportionately large. Speed, depth and scope of analysis, and extensive supporting information are indispensable in the selection process. Equipment designs and their applications are also myriad and diverse. Several equipment alternatives and excavation techniques may have to be evaluated at once to choose the most cost-efficient approach. The following examples are typical of the current demand for more detailed equipment analysis: • An aggregate supplier starts a new quarry. He knows his targeted tonnage, blasting restrictions, and previous operating costs from other quarries. But he must improve on his old costs. What drill pattern, hole size, and bench height will give lowest cost per ton? How many crawler drills and what type will produce this tonnage most efficiently? • A mine is using a fleet of twin pneumatic ring drills for long hole drilling to initiate their cave. The mine is facing both air shortages and increasing operating costs with decreased efficiency in the ring drill fleet. If they invest in new hydraulic long hole drills, what impact will each drill unit have on production? Each twin drill unit? What configuration gives best operator efficiency and subsequent reduction in manpower? Which configuration gives the best return on investment? • A tunnel contractor is bidding a long straight water tunnel by conventional drill and blast methods. What is the optimum number of drill booms for the tunnel cross section and excavation schedule? How many rounds per day can he achieve? What are his total project drill, blast, and muck costs? In the past, such questions could be answered, but only approximately at best. One good prediction could involve many hours of laborious calculations that had to be repeated each time a new parameter was introduced or an existing parameter changed. In 1980, increasingly complex analysis, coupled with increasing need and quick response times demanded by industry, led Atlas Copco&apos;s project department to turn to the computer. New computer programs based on theoretical considerations and three decades of worksite performance data were developed for evaluating mine and tunnel contractors&apos; equipment needs, productivity, and partial or total operating cost calculations for most conventional drill and blast excavation techniques-including shot rock loading and transportation. This Computerized Analysis of Rock Excavation-or CARE-program has since been available to the mining and construction industry. From each program specific results can be pre- dicted, including: • Productivity Calculations-Rock drill penetration rate for a given drill, hole size, and rock type, optimized for the best drill steel life; net machine productivity (drill-out time or drill meters-footage-per shift); total drill round time, including charging, blasting, loading, and haulage; suggested drill pattern, computer printed, including hole size for a given rock drill, rock type, and associated blasting restrictions for either drift rounds or benching applications; long-hole drill meters (ft) per drill shift; breasting down (upper drilling) drill meters (ft) per drill shift; and comparison between continuous loading machine capacity and LHD capacity. • Operating Cost Calculations-Operating costs expressed as cost per drill meter (ft), cost per cubic meter (cubic yard) of excavated rock, and cost per meter (ft) of tunnel advance. These costs may be calculated using as many cost centers as the mine, quarry, or tunneling contractor wishes. Specific operating costs may cover drill rig operating costs only, less capitalization; drill rig operating costs, including amortized equipment investment; drilling and blasting costs; drill, blast, load, and haulage operating costs; long-hole drilling operating costs per drill meter (ft) or per blasted cubic meter (cubic yard) of rock; and loading and transport operating costs. In all the above cases, any number of cost and capacity calculations may be run by simply changing important cost center variables to judge their net effect. Accuracy as a Function of Input Data and the Statistical Data Base Accuracy of a projection clearly depends heavily on the data base from which the projection is drawn.

Jan 11, 1982

By E. L. Fidler, T. E. Finch

Wayne Anderson Regarding the technical paper by Thomas E. Finch and Edward L. Fidler, "Recovery of Stray (Thin) Seams in Western Coal Mining." I would like to comment on this subject. In western Canada, most strip mines encounter thin seam coal or rider seams. Although the paper addresses the problems and costs associated with the recovery of this coal, it does not take into account what the savings are. Without looking at the savings, the "Total Objective" is of course not clear. I feel that in a stripping operation the mine can spend per ton (of the thin seam) up to their dragline stripping costs per ton to recover a rider seam or thin seam. The reasoning behind this is simply that this is the price the mine will have to pay to expose an equivalent amount of coal without the recovery of these thin seams. If the mine can recover a rider seam or thin seam for less than the dragline operating costs per ton, a savings will be realized. By recovering a thin seam or rider seam, the life of an ore body is extended by that amount of coal not thrown away. In addition, the cost of land acquisition, associated permits, capital, and reclamation will be reduced as more coal is delivered for a given area. When the above points are considered, the recovery of these thin seams can be very profitable and indeed worth recovering.

Jan 11, 1982

By Jim Oehler

The US minerals industry, as well we know, has been hit hard by the recent recession and is faced with what is projected to be a slow recovery. Even so, there was an underlying feeling of optimism at American Mining Congress&apos; International Mining Show in Las Vegas, NV, Oct 11-14. More than 25,000 people attended during a particularly rough financial year, dispelling fears that attendance would dip sharply below 1978&apos;s 30,000 plus tally. The equipment expositionheld every four years-was the largest show of its kind this year in the Western Hemisphere in terms of exhibit space, providing an extensive view of mining-related equipment. In addition to the nearly 700 exhibits occupying more than 445 hm2 (11 acres), 20 technical sessions were held covering topics ranging from minerals availability and the state of the mining industries to communications, computers, and accounting. Government officials were well represented, with six US senators and five US representatives participating in various convention functions. Sen. Paul Laxalt (R-NV) was the keynote speaker at the welcoming luncheon. Other senators involved in the show included Howard W. Cannon (D-NV), Pete V. Domenici (R-NM), James A. McClure (R-ID), Frank H. Murkowski (R-AK), and Steven D. Symms (R-ID). Representatives on the program were Joseph M. Gaydos (D-PA), Guy Vander Jagt (R-MI), Don Young (R-AK), Jim Santini (D-NV), and Ceil Heftel (D-HI). There were also many international vistors at the show, including exhibitors from Australia, Austria, Canada, England, Finland, Sweden, South Africa, and West Germany. Equipment Highlights Equipment and services featured at the exposition ranged from aerial mapping to wire rope. Aisle space alone between exhibits exceeded 8 km (5 miles). And the companies represented ranged from small businesses to large corporations. Some of the company products described here are representative of the many exhibitors in attendance. Atlas Copco&apos;s extensive display of rock drilling and tunnel and shaft boring equipment featured its Boomer H-201, the newest addition to its line of underground drifting rigs; the ROC 306, a new track-mounted, high pressure down-the-hole drill rig; a new hydraulic surface crawler drill, the ROC 712H, designed for small and medium-size holes in quarries and small open-pit mines; a computerized analysis system, CARE (see page 1570), designed to project productivity and operating costs for various mining operations; several electro-hydraulic loaders, including the new rail bound LM E60 and LM E80, and two Hagg-loaders-the 7HR and 10HR-that use two digging arms to rake and guide muck; a mechanized blasthole charging system; rock bolting equipment and its new Swellex roof bolting method; Sandvik Coromant drill steel and bits; and its new Jarva R200 raise boring machine.

Jan 11, 1982

By Mark W. DeLawyer

The base of the stone quarry still stands today, as imposing as any Mavan temple or Egyptian pyramid. For 80 years it has been a reminder to those who must sweat to earn a wage. There are no plaques to indicate its impressive history. Rather, it stands as a towering monument to the masons and stone cutters who built it-a testimony in stone to that most demanding and back-breaking of industries. Take your imagination back to the limestone quarries at Split Rock, near Syracuse, NY. The sound of an occasional steam drill and the mighty roar of a dynamite explosion herald progress. The ring and crash of a hundred sledge hammers are music in the calloused hands of the quarry men. It is a symphony of man against nature. Hundreds of sweat-soaked men break up the blue Onondaga limestone for the "sodi ash," the popular name for the quarry owner, the Solvay Process Co. Nearby, expert stone masons fit mammoth 454-kg (1,000-1b) blocks of cut stone into place, building the foundation for what may have been, back in 1902, the world&apos;s largest stone crusher. Consider for a moment, a modern stone quarry. The business is now essentially one of machine against nature. The shovels, drills, conveyors, and locomotives help make the quarry of today a profitable venture. Now consider the quarry of the early 20th Century. Anyway you look at it, a tougher, more demanding life would be difficult to imagine-12 hours a day, all kinds of weather, breaking up tons of rock that had been drilled, blasted, or pounded from the bowels of an uncooperative earth. Before proceeding, it might be prudent to briefly describe the history of the Split Rock quarries. Before the purchase of the quarry lands by the fledgling Solvay Process Co. in 1889, the quarries already had a reputation literally chiseled in stone. Most of the municipal buildings in Syracuse were made of it, as well as over half of the Erie Canal, including the engineering marvel of the time, the Montezuma Aqueduct. This was where the Canal passed not only through, but in some

Jan 11, 1982

By James M. Link

The first rule of mineral deposits always seems to be: the deposit is never close to the market. With gems and precious metals, this is not much of a problem. But with most of the mineral commodities used in today&apos;s world, transportation becomes a major part of the cost to the consumer. In Japan, for example, more than 60% of the cost of coal to the consumer may be attributed to transportation. The purpose of this article is to examine pipeline transportation, particularly mineral slurry pipelines, as a means of getting the mineral to market. Pipelines Today Regulated pipelines in the US totaled nearly 724 Mm (450,000 miles) in 1980 according to the Federal Energy Regulatory Commission (FERC). Worldwide, more than 210 Mm (125,000 miles) of new pipelines will start construction in 1982 at an estimated cost of more than $150 billion. According to the Bechtel Corp., the period between 1982 and 2000 will see major growth in pipelines of all kinds. In North America, major movements of crude oil from Alaska and synfuels from the Rocky Mountains will require the construction of nearly 16 Mm (10,000 miles) of new pipelines. Nearly 42 Mm (26,000 miles) of new gas transmission pipelines will be needed to tap both US and Canadian arctic gas fields and move the gas to major markets on both coasts. Other pipelines will be required to move additional quantities of natural gas from the Rocky Mountains to more populous regions. Bechtel says more than 24 Mm (15,000 miles) of slurry pipelines will be needed to transport coal from both eastern and western coal provinces to the Mississippi valley and coastal areas. In 1980, 125 companies delivered more than 1 km3 (6.5 billion bbl) of crude oil and 652 hm3 (4.1 billion bl) of products in the US. At the same time natural gas pipelines transported 498 km3 (17.6 trillion cu ft). The reported investment by these companies was nearly $20 billion at the end of 1980. Advantages of Pipeline Transportation The obvious success and vitality of the oil and gas pipeline industry is based, at least in part, on the fact that pipelines are a very efficient and low-cost method of transportation. This fact, coupled with the need for lower cost trans¬portation, has led to the marriage of oil and gas transmission technology and the bulk mineral solids transportation industry. The off-spring of this marriage is the mineral slurry pipeline. Slurry pipelines have a number of advantages over other transportation methods. One of these is the fact that they are buried-out-of-sight, out-of-mind. Second, they are relatively small users of labor because they lend themselves to automation and remote, or even computer control. Third, they offer an attractive economic alternative to other transportation systems. For example, for a 1000 km (621 miles) distance, rail costs of 1?/ km (1.7?/ton-mile) are about equivalent to slurry pipeline costs. But, as the distance increases, pipeline cost per t-km continues to drop while equivalent rail charges remain essentially insensitive to distance. Where existing rail, barge, or ocean ships are available, the cost of new construction associated with a slurry pipeline probably will render it noncompetitive. However, where new rail or other construction is needed, the cost of a slurry pipeline is very competitive. About three-fourths of the cost of a pipeline is in pipe, fittings, and construction. Nearly a fifth of the investment is in pump stations and the remainder is in right-of-way, surface facilities, utility acquisition, communication facilities, and other support areas. The fact that pipelines are capital intensive is, at the present time, a mixed blessing. For example, the delivered cost of coal in a hypothetical project doubles when the cost of money rises from 9% to 17.5% per year. The largest cost element for delivered coal in this example is in depreciation and finance charges. The next largest cost element is electricity to power the pumps, with labor making up the smallest increment of the delivered cost of coal. World Slurry Pipelines The idea of a slurry pipeline was probably first investigated in the latter 19th century, but the first ones were successfully built and operated in the US in the early 1900s. Today, they are fairly common worldwide. Table 1 shows a number of the world&apos;s slurry pipelines. An examination of these will further emphasize the fact that pipelines provide a cost competitive alternative where new construction of a transportation system is required. In each of the examples, the desired mineral commodity is located in a remote corner of the world, markets are at a great distance, value of the commodity is not great, and no other transport system is available.

Jan 10, 1982

By Peter J. Szabo

Many mining engineers tend to think of the economic analysis of mining ventures and projects on an f.o.b. mine basis. This is especially true of mines that are operated in an established domestic mining district. Here, transportation costs are many times smaller in comparison to overall delivered prices. One has only to consider the development economics of taconite mines in Minnesota with production destined for lower lake ports to see the truism of this statement. In the international arena, however, with consumers such as Japan and Europe located thousands of miles from source countries such as Brazil and Australia, the situation is different because mineral transportation is often a critical factor in determining project viability. This article is being presented to provide a basic understanding of the factors that govern ocean transportation of the three largest bulk mineral commodities shipped around the world: iron ore, coal, and phosphate. The major dry bulk commodity trades as a percentage of volume shipped are iron ore, 45%; grain, 25%; coal, 20%; phosphate rock, 5%; and bauxite and aluminum, 5%. Most of these commodities are carried by bulk carriers rather than tankers. These are vessels that have cargo, usually in solid form, loaded directly into the hold of a vessel by shore-side materials handling facilities or, in the case of a geared bulk carrier by the vessel&apos;s cranes and derricks. Gearless bulk carriers are used in most cases for iron ore and coal. Geared bulk vessels are mainly used for minor dry bulk trades such as ore concentrates (copper, lead, zinc, etc.), fertilizers (phosphate, potash, etc.), cement, petroleum, and coke. There has been, however, a trend toward using more self-unloading ships in both iron ore and coal ocean transport. And large vessels, such as the Universe Kure of Japan, have been designed with a cargo capability of 157 kt (155,000 dwt (deadweight tons)). Trade patterns of major bulk commodities are influenced by the Panama and Suez canals. Both of these canals have draft limitations that prohibit large, deep-draft, ocean-going vessels from using them for shorter trade routes used by Panamax and Suex vessels. The shipping industry has developed two widely used vessel classes; the Panamax and Suex vessels. The former is the maximum size vessel that can pass through the Panama Canal, usually 51-61 kt (50,000 - 60,000 dwt), depending on the season and draft of the vessel. The Panama Canal is usually 0.6-0.9 m (2-3 ft) deeper in the winter than in the summer. Thus, less cargo can be carried by the same size ship in the summer through the canal than in the winter. The Suex vessel is in the 71-81 kt (70,000-80,000 dwt) class. This larger vessel is able to transit the Suez since Egypt deepened the canal following the Seven Days War. Recently, the Suez Canal has been deepened to accommodate vessels with drafts as deep as 152 kt (150,000 dwt).

Jan 10, 1982