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By George Wilson

As the economic and environmental attractiveness of conveying coal and ore slurries by pipeline increases, greater attention has been given to designing and selecting components for these pipeline systems. Pumps are one critical element in pipelining. Pumping slurries is a particularly arduous task, calling for special design and construction. The first article in this two-part series describes some factors to consider when selecting pumps to resist abrasive wear.

Jan 9, 1981

Part two of this three part series looks at explosives use in open-pit and underground mining operations. Part three, next month, will discuss the transportation, storage, handling, and destruction of explosives. Larger ore bodies, lower grade deposits, and more difficult geologic conditions have led to changes in blasting products, techniques, and field practices in both open-pit and underground metal mines. Pit blasting operations must consider the material's geology, needed fragmentation for the material, and hole diameter and depth-as well as the traditional consideration of the type of explosive used. With underground mines, various blasting aspects of burn, angle, and machine cuts must be considered for an efficient and safe operation. Of the factors related to open-pit blasting, geology of the material is most important. Many theories relating to sonic velocity and rock hardness are used to determine needed explosives ratios. Extensive field tests are necessary to determine these factors. In most cases, results assume that the material to be broken is homogenous. The drilling penetration rate is sometimes used as a guide to determine rock hardness; however, this is not necessarily a good idea. In many cases, a very hard, brittle rock will blast with less difficulty than a soft, spongy rock. The formation's stratification is also important. In thinly laminated horizontal seams, rock will usually break and adequately fragment with relatively large burdens and spacings using a low explosives ratio. Massive formations with few laminations require close burdens and spacings and a high explosives ratio. When the stratification is pitched on a severe angle, it is usually preferable to develop the pit face 90°-but no less than 45°-to the stratification. If the face must be developed parallel to the stratification, burdens and spacings must be reduced and the angle drilling that will conform to the angle of the lamination should be given serious consideration.

Jan 8, 1981

By J. Craig Green

Companies mining for coal, oil shale, and minerals in the western US must often complete extensive geotechnical studies to satisfy federal and state regulations. The modern mining process is further complicated by the legal problems and liabilities associated with mineral rights and land leasing. Yet the study of water rights-unique to the West is often incomplete or ignored until the latter stages of mine planning. Water rights in the West are not adequately understood by many mining companies and their geotechnical consultants. Some firms, headquartered outside the western US, have not had to contend with the water supply problems of a semi-arid region. Water problems encountered by eastern mining companies, for example, are primarily water quality, drainage, and flood control. Even when water quantity is a problem in these areas, ownership and/or use of it is governed by entirely different legal and administrative concepts than in the West. Both legal and engineering issues have to be considered when studying western water rights. Legal issues, such as existence and title, must be addressed to insure that a particular water right is properly established and maintained. The exercise of a water right, however, often requires engineering analyses that focus on preventing injury to the properly established water rights of others.

Jan 8, 1981

By Walter Shukin, Mark T. Olsen

An enormous quantity of tailings to be ultimately stored, unfavorable topography, severe climatic conditions, and an environmentally offensive red effluent all contributed to the challenge of designing an effective and cost efficient tailings confinement program at the open-pit iron ore mine operated by Quebec Cartier Mining Co. at Mount Wright in northeastern Quebec. The mine has been operating since 1976, but a detailed disposal plan was first initiated with construction of some channels and ditches during 1980. In the coming years, a system of dams, channels, and tailings confinement dikes will be constructed to accommodate tailings produced in the next 25 years. Careful consideration has been given to environmental effects, and the works under construction have been sized and situated to be extended as required to an ultimate mine life of 87 years.

Jan 8, 1981

By A. Smithson

It is generally accepted by British mining engineers that coal will continue to be worked by the. advancing or retreating longwall system for the foreseeable future. At the coal face, the emphasis will be on better machine utilization; increased equipment reliability; modular design and more standardization; remote control and monitoring; and a continuing drive to increase productivity and safety. Improvements at the face can be sustained only if there are corresponding improvements in efficiency elsewhere in the mine. Coal handling systems, for example, must be able to accept increased tonnages without creating bottlenecks. As workings move further from the shafts, the time taken to transport men and materials must be kept within reasonable limits. Development drivages must he on schedule to be ready for the planned opening of new faces, and face ends must keep up with faster moving faces.

Jan 8, 1981

A panel discussion on carbon-in-pulp processing of gold and silver ores was one of the highlights of the 1981 AIME Annual Meeting in Chicago. The session generated considerable interest and discussion among panelists and the audience. For those unable to attend the panel, the program was recorded and the discussion appears in this two-part report. The panel was co-chaired by Robert S. Shoemaker, vice president of San Francisco Mining Associates, and Laurence D. Hartzog, principal engineer with Bechtel Civil and Minerals Inc., San Francisco, CA. Panel members included: George Potter, consultant, Tucson, AZ; Kenneth B. Hall, metallurgical superintendent, Homestake Mining Co., Lead, SD; and Donald M. Duncan, resident manager, Pinson Mining Co., Winnemucca, NV. There have been several types of carbon-in-pulp adsorption vessels in use, such as the Dorr-type agitator, the simple propeller agitated tank, the Pachuca tank, and, lately, the draft tube-type of agitated tank. Which one of these is best and why? Potter: On the selection of the most appropriate adsorption vessel, there is a considerable difference of opinion that stems largely from the fact that every ore is different. The mesh of grind, the pulp solids, and the apparent viscosity of the pulp as caused by its clay content and chemical conditions all differ. The traditional Dorr agitator with the slow speed center sweep and either peripheral or center column air lifts has worked quite well on the finer grinds of all minus 65 and probably 70-80% minus 200 mesh. Pachuca tanks have also been successful and they may be capable of handling a coarser feed than the traditional Dorr tank. One uranium mill, for example, handles minus 28 mesh sandstone ore in a Pachuca. The most recent development and one that commands consideration is the draft tube agitator in which there is a turbine which closely fits inside a draft tube. Velocity in the tube is carefully calculated to avoid undue shear and thus abrasion of the carbon. The objective in all cases, of course, is to mix the granular carbon, which is typically 6 x 16 mesh, very gently but thoroughly in a slurry with minimum carbon abrasion. I do not know that there is one outstanding choice just yet and I have been unable so far to get information on C-I-P service for ore grinds as coarse as 35 mesh. Duncan: The major advantage of draft tube-type is the ease of startup. At the Pinson plant we installed draft tube-type agitators but it is too early to quote experience with them. We also haven't operated long enough to determine just what our carbon loss is. The advantage, of course, in the draft tube design is that it requires only about one-third the horsepower input of a conventional agitator. If it has no other advantages, it has that. Hall: The type of vessel most suitable for C-I-P adsorption depends on the type of ore treated and the prevailing operating conditions. In most cases, a deep tank with turbine-type mechanical agitator and low speed tip velocities would be satisfactory. Turbine-type impellers give a positive type of agitation which assures optimum ion contact and reduces short circuiting. Thorough aeration is possible with an air sparge properly located. A mechanical agitator can easily be started up after an outage, but it is usually necessary to drain and wash out a Dorr rake-type or Pachuca before restarting. The turbine-type impeller requires more power, but maintenance costs are negligible if rubber covered impellers are used. Carbon losses are minimal. In smaller plants, Pachuca type agitators provide adequate aeration and agitation. Bob Polak, Occidental Minerals (from the floor): Mr. Hall, you favor the mechanical-type agitator with the preface that the proper design is critical. Could you elaborate on this for us? Hall: The most important thing is low tip speed to prevent carbon attrition. I think the impeller should be sized so that you get a good sweeping action toward the bottom of the tank, across its bottom, up the sides, and back to the center. The advantage of the draft tube is that you get a more positive agitation and you probably get improved aeration too. Polak: Do you know of anyone using an upflow mechanical agitator rather than a downflow unit? Hall: I think that Bob Wilson at Custom Equipment has designed one where he has located the sparge directly beneath the impeller. The air bubbles are broken up by the impeller as the slurry passes through it. The slurry flows upward, outward, down the sides, and, again, back to the center of the tank. I don't know that any tanks of this design are in commercial use. Hans Von Michaelis, Randol International (from the floor): A question to any of the panelists on flat bottom versus conical bottom Pachucas. Hall: I would say the conical bottom would be most suitable in most cases. Some plants have experienced problems with flat bottom Pachucas in that they have a tendency to sand in on the sides of the tank so only the center of the tank is active. Duncan: With our draft tube tank we placed an inverted cone in the center of the tank bottom and blanked off the bottom comer around the circumference of the tank to facilitate movement of the pulp. Other than that, as far as conical bottom tanks are concerned, I'm generally opposed to them because of the cost and height differential. Larry Kramer, Kennecott Minerals Co. (from the floor): Mr. Duncan, you mentioned that the draft tube-type could be agitated with about one-third the horse-power applied to a conventional propellor agitated tank. I have trouble trying to pin down that kind of number. Could you give a bit of rationale as to why that mechanism has a lower horsepower requirement? Duncan: I think it has to do with the fact that below the propeller you have straightening vanes. The pulp, which is flowing vertically downward, is turned and flows upward again without any recirculation. You have an inherently less horse-power requirement in that type of tank. The one-third horsepower requirement is a number I obtained from Lightnin, which supplied us with details of the draft tube. There is probably much more recirculation with a conventional impeller type that is wasted motion. Potter: Last week I saw some agitators in South Africa with short draft tubes and actual turbine-type impellers. This plant was handling 200 kt of ore per month. The tanks were flat bottomed, and the agitation appeared to be quite satisfactory.

Jan 8, 1981

By John R. Sturgul, Elizabeth Yost

The number of Native Americans presently working as mining engineers is extremely low-perhaps three in the entire US. At the New Mexico Institute of Mining and Technology, it was felt that introducing high ability students to mining engineering at the high school level would encourage more to consider mining engineering as a career. New Mexico Tech, in Socorro, NM, has initiated a continuing summer college program for Native American high school students. The program, which began in the summer of 1980, is designed to introduce participants to college life, enrich their high school curricula, and expose them to the problems and challenges of a career in mining and related engineering fields. Students From reservations throughout New Mexico with a demonstrated aptitude for science and mathematics were encouraged to apply for admission. Preference was given to high school sophomores and juniors since it is hoped that students will want to return for a second year before graduating from high school and beginning university studies. The program seeks to impress upon the students the need fir Native Americans in the fields of seience and mineral engineering.

Jan 7, 1981

By Earle J. Klohn

Tailings disposal has rapidly become an area of increasing importance to both existing and planned mining operations. In recognition of the significance of this topic, MINING ENGINEERING is presenting a series of articles on tailings disposal. The first, published in June, outlined some site criteria that influence tailings disposal and some of the design options available to meet these criteria. The following article explores in more detail important design criteria for tailings dams and provides several case study illustrations.

Jan 7, 1981

By W. N. Key, L. C. Acton

Freeport Minerals Co.'s Ertsberg East underground operation typifies the cliche that all the "easy" ore deposits have already been found. Despite its location, in a remote Indonesian rain forest, and the effort and expense required to develop the ore body, the mine was developed on schedule, under budget, and with minimal disruption of the adjacent open-pit mining operation. Development of the Ertsberg East copper, gold, and silver ore body took less than two years after exploration drilling and feasibility studies were completed. In addition, the project came in well under its targeted budget of $101.5 million. Initial block caving and underground ore production took place last year. About 3 kt/d of Ertsberg's total 8.6 kt/d ore production is currently mined underground. This will increase to 5.4 kt/d by year's end. Underground operations will eventually account for all of Ertsberg's production, as the open-pit ore body is depleted. Freeport Minerals is currently studying the possibility of increasing total Ertsberg East production tonnage to 10.5 kt/d by 1983. The equipment, work practices, and development methods at Ertsberg East (Gunung Bijih Timur or "GBT"), while typical of other block caving mines, were modified for rapid mine development and maximum ore recovery. Located in the Irian Jaya province, "Gunung Bijih" is the Indonesian expression for the Dutch "Ertsberg" that in English means "ore mountain." "Timur" means "east" and relates to the fact that the new underground ore body lies about 1 km east of the open pit. The area surrounding GBT is mountainous, with peaks from 4.2-5 km. The underground mine adit and surface plant are located at a 3.6-km elevation. The mine, 4° south of the equator, gets 5.1 m/a of rain, but has an average daily temperature of only 13°C because of the mine's elevation.

Jan 7, 1981

The first of this three part series examines he history and some of the properties and characteristics of explosives. Use of explosives is discussed for underground and surface coal operations—the largest consumers in the mining industry. Part two of the series will deal with explosives use in surface and underground hardrock operations. Part three will discuss explosives transportation, storage, handling, and destruction.

Jan 7, 1981

By Gordon L. Steele

Candelaria, a century old mining camp in western Nevada, was famous for its high-grade silver veins. Continuing demand for precious metals resulted in renewed interest in the mining camp and it is now being mined with modern open-pit methods and heap leaching of disseminated silver ore between mined-out veins. The Candelaria operation, in Mineral County, NV, handles 32.7 kt/d of material and was designed, built, and functioning within a year of corporate approval. Occidental Minerals Corp., an Occidental Petroleum Corp. wholly owned subsidiary, is the project's general partner and Congdon and Carey is the only limited partner.

Jan 6, 1981

By Lindsay Norman

To many who for years have scrutinized the US mineral supply picture, recent, often strident debate on present-day security of many critical mineral supplies echoes sentiments repeatedly expressed in the past decade by the minerals industry. At no time since the last world war has such a flurry of public concern been expressed for the economy's mineral sector. Where once mineral availability problems were relegated to the newspaper's business section or not reported at all, today comprehensive analyses of our international mineral posture are discussed in detail by some of the nation's most respected and widely read periodicals. In past years, disinterest was also experienced whenever the mining industry attempted to carry its message to Congress, the public, and the government's executive branch. Among minerals professionals, the past decade was a time of particular frustration clue to serious erosion ill US ability to competitively produce the vast array of raw materials vital to the economy acid national defense. Fervent calls for immediate attention were simply not answered. These professionals have understood that mining and agriculture are the primary sources of wealth, fulfilling virtually all needs and creating and sustaining jobs. Why then has it been so difficult to raise the consciousness of the American public, and even more surprisingly, of the government and national leadership? The answer to this question is perhaps endemic to how government functions, but pore important, it begs that mining professionals capitalize on the opportunity and the attention now at hand. Carefully conceived and implemented actions by both private and public sectors are needed more than ever before in the past 35 years. To this end, it is vitally important to seek out and resolve the root causes of supply problems and not dwell on superficial solutions. The following discussion attempts to establish a simple framework to view this process. It does not presume to be an exposition of cause and effect, but hopefully identifies some needed steps. Growing Awareness in the 1970s Of all events stimulating current concern, certainly the OPEC oil embargo has left the deepest impression. It was inevitable that after such a shock, man. Americans would begin asking whether the US was as vulnerable to cutoffs of minerals as it was to oil cutoffs. Then, when serious trade security questions surfaced in sonic mineral-rich nations in Africa and the Persian Gulf, the ominous term ''resource war" began to be heard. Countries such as South Africa, Zaire, Zambia, and Zimbabwe have suddenly become key areas for testing our national security resolve. As the US witnesses the influx of Marxist influence in many sub-Saharan exporting nations and the rising threat to free world access to critical materials and energy, the assurance of adequate supplies is becoming a national issue at last. The US is now learning that self-sufficiency for many vitally important mineral commodities has vanished. Of course, it did not vanish overnight; it had been leaking away for years, and the trend was noted by industry and a few in government. Within the minerals community, suspected weaknesses in America's resource posture were sought and found. As a result, the country's heavy reliance on foreign sources fur more than a score of minerals, many extremely vital to security, has been forcefully documented and the case for drastically altering the supply unbalance hits been proposed. The renewed concern for national defense is central to almost all proposals for minimizing US foreign mineral dependence. It is not surprising that many of the voices heard today on the dependency issue are active members or alumni of the militate establishment. Unfortunately, their almost total focus on the security aspects of dependency has tended to obscure important underlying issues which are not directly defense-related. Some of the proposals advanced might mitigate the deeps-dency problems, but they still fall short of curing the underlying problems that have led to a steady loss in mineral self-sufficiency. In almost all instances these problems call be traced to increasing government influence on the free market minerals economy. Some national security proponents seek to attain total self-sufficiency in minerals. Such arguments must he tempered by existing realities. It is easy to demonstrate that the US obtains substantial quantities of sonic essential minerals from potentially insecure sources abroad. That the US will continue to do so in the foreseeable future is not in doubt Uncertainty begins, however, when we try to interpret the significance of these facts. It is important to understand that mineral dependency does not irrevocably lead to vulnerability. Unlike oil, no mineral commodity combines the same degree of universal indispensibility and centralized foreign control of supplies. Moreover, although many US-required minerals are produced by fewer countries than export oil, those minerals cannot approach petroleum in economic or industrial importance. Finally, most foreign supplies come front friendly, secure nations such as Canada, 'Mexico, and Brazil. This, aid more, constitutes a vital element in US economic health as a world trading nation. The Cost of Interruption The US is currently stronger and more resilient than many expected after absorbing the oil embargo shock and subsequent price increases. Nevertheless, major worldwide

Jan 6, 1981

By Albert Musschoot

The expanding applications of vibrating feeders for controlling the flow of bulk materials, and their adaptation for processing requirements, have developed considerable interest in stockpiling and reclaim systems. The general design of these units consists of a material transporting trough, or platform, driven by a vibratory force system. Design flexibility and variety is limited only by engineering ingenuity. The basic motion of the vibratory trough, or work member, is a controlled directional linear vibration that produces a material tossing or hopping action. Material travel speeds vary from 0 to about 30 m/min, depending on the combination of frequency, amplitude, and slope vibration angle.

Jan 6, 1981

Electrostatically charged water droplets efficiently suppress breathable dust produced during open air rock crushing operations, according to recently completed independent tests conducted for the Environmental Protection Agency. Since a primary rock crusher produces very heavy clouds of dust, this application was selected as an appropriate test site to measure the efficiencies of new "charged fogging" equipment in mining and mineral processing operations. EPA's Industrial Environmental Research Laboratory, Research Triangle Park, NC, contracted TRC-Environmental Consultants Inc. of Wethersfield, CT, to conduct a full-scale demonstration of a recently developed electrostatic fogger, designed to project a charged fog spray at distances up to 15.2 m. Test results indicated overall fogger efficiencies of approximately 70%. The Fogger IV* employed in these tests is reportedly the largest charged logger ever made, with an extremely long operating range. The original fogger was designed for indoor dust control; this fourth generation version is designed for fugitive dusts, indoor and outdoor, and has an operating range up to 15.2 in.

Jan 6, 1981

By Steven G. Vick

Not too long ago a mill superintendent, when asked where his tailings were being disposed, could simply shrug his shoulders and point to the open end of the thickener discharge pipe. This “out of sight, out of mind” approach to tailings disposal is a practice of the past. Today there are very few planned hardrock or energy-related mining facilities where tailings disposal has not been identified as the major area of impact and controversy. In fact, development of some ore bodies has been stymied altogether by lack of suitable sites or methods for tailings disposal. The bottom- Iine result is that tailings disposal often controls the permitting lead time and has a significant influence on construction cost (up to 2070 in some cases) of new minemill complexes. The following article, the first in a series of three, explores technical background and historical perspectives on siting and design of tailings impoundment facilities.

Jan 6, 1981

By Paul Russell, M. M. Kimberley, Erick F. Welland, Louis Cope, C. C. Mosher, William M. Shepard, William C. Larson, Graham Closs

Exploration activities in 1980 felt the effects of unstable economic conditions and oscillating metal prices. In the cyclical, boom-or-bust precious metals and uranium markets, precious metals activity flourished and uranium was definitely in a slump. By November last year, the price for vellowcake was down nearly $20 from two years earlier. Many mining and milling operations closed, particularly in Wyoming, New Mexico, and Colorado. Decreasing emphasis on nuclear power continued to impact the market, as did the Three Mile Island accident of 1979. Earlier forecasts estimated that 10 to 12 reactors would be ordered per year by US utilities throughout the 1980s, but current forecasts suggest that it may be 1983 or 1984, or even later, before any new US plants are ordered, according to Thomas A. Boyden, vice president of Nuclear Exchange Corp. "Without those new plants, the consumption loss to industry is 4 to 5 million pounds (1.8-2.3 kt) of uranium per year. The cumulative loss to the industry is currently estimated at 25 to 30 million pounds (11.3-13.6 kt)," Boyden said in a May 1980 presenta¬tion. Despite the plunging market, there were a few notable uranium explora¬tion programs: •Exxon expanded uranium exploration in New Mexico, where the company reportedly took preliminary steps toward acquiring mineral rights to a 22-km2 prospect, 19 km south of Santa Fe. • Mountain States Resources began the second phase of an exploratory drilling program on its Sinbad/ Solo prospect in Utah. • Also in Utah, Cotter Corp. drilled its first exploratory hole in the Dirty Devil River district. Exploration for precious metals in 1980, however, appeared to tend toward the opposite extreme. High prices sparked near feverish searches in Alaska, California, Colorado, and Nevada. Numerous mines abandoned years ago were revived with some signs of success. Significant gold finds were reported in California and Nevada: • Homestake Mining Co. announced a gold discovery in California estimated to contain over 5 Mt with an average grade of about 5.8 g/t. Because the deposit consists of finely disseminated particles not visible to the eye, many speculate that prospectors bypassed the area during the 1849 California gold rush. • Newmont Mining Corp. discovered two gold ore bodies-Maggie Creek and Gold Quarry. Maggie Creek reportedly contains an estimated 13.7 t of gold in 4.3 Mt of ore, and Gold Quarry contains about 31.1 t of gold in 9 Mt of low grade ore and 2.3 Mt of higher grade ore. Highlights of this year's exploration review include articles on the modest growth recorded in geophysical activity, technical developments in exploration geochemistry, the variety of new instruments being tested or made available for exploration, and a state-by-state exploration review for the year.

Jan 5, 1981

By R. Addison, P. V. Avotins, D. W. Kestner, M. F. Dibble, L. A. Haas, M. D. Flavel, D. Halbe, D. J. Barratt, G. V. Jergenaen

Mineral processing in 1980 can be described by several key words, familiar to the industry throughout the past decade: complex, low grade, environmental, energy, high tonnage, and economics. Flowsheets have become more complex in order to treat lower-grade, finer-grained, more complex ores and still meet environmental and economic constraints. Operators and researchers have had to cope with these problems, which have resulted in marked trends in mineral processing. The use of advanced instrumentation in process monitoring, control, and modeling has been increasing to deal with fluctuating ore grades, higher plant capacities, rapidly rising operating costs, and process complexities. The industry has been presented with new generations of equipment that reportedly do the job more efficiently and at a reduced cost. The need to meet stricter air and water environmental standards has resulted in a concerted effort by the mineral industries to obtain an appropriate balance between the needs of mining and mineral processing and the requirements for proper environmental, safety, and health protection. Energy and economic considerations have led to increased equipment size, particularly in grinding, flotation, and conveying. Throughout all phases of mineral processing there has been an effort to reduce energy consumption. One avenue followed by researchers and operators was the testing and use of chemicals to reduce energy requirements.

Jan 5, 1981

A glance at the following chart reveals that because of the continued poor economy, the slump in industrial mineral production continued into 1980. Gypsum was down 17% from 1979; cement down 9%, sand and gravel, 17%, and crushed stone, 11%. All these downward trends reflect the high interest rates and high costs that slowed construction starts. Domestic fluorspar was down 21% and imports off 14% due to the steel iudustry slump. However, potash production was up 8% and phosphate, 5%. Increased drilling activity spurred au increase in barite production of 25%. Most other industrial minerals posted losses with only a few insignificant increases. As expected, prices were higher, reflecting increases due to high costs for labor, supplies, and above all, energy. Increasing energy and transportation costs also had their effect on industrial mineral production. Railroad freight rates increased 16-22% including fuel surcharge; truck rates increased 11-14%a; and ocean freight rates increased 20% for finished goods. The 1979 shortage of boa and hopper cars did not continue into 1980-most likely due to low production of many of the hulk industrial mineral commodities. All in all, 1980 was not a good Year for industrial minerals.

Jan 5, 1981

By M. J. Garcia, Howard Hallman, G. M. T. Marshall, Ken Higby, Louis Cope, Robert S. Hess, John Peters, A. G. Law, William C. Larson

After a good year in 1979-strong mineral demand, adequate prices for most metals, minimal labor problems-1980 was not so good. The US produced $24.8 billion worth of nonfuel minerals last year, up 3.5% from 1979, according to preliminary US Bureau of Mines figures. But the $800 million increase was the smallest annual gain since 1977 and reflected reduced auto and construction industry demand, strikes, and energy shortages. Preliminary figures for 68 minerals show that production of 42 decreased, 25 increased, and one was unchanged. Production of 11 of 21 US-produced minerals was up. Noteworthy mineral events in 1980 included a copper industry strike, increased gold and silver prices, troubles in the iron ore and uranium industries, discussion about a US nonfuels mineral policy, and corporate interest in mining companies as merger targets. Recessionary conditions experienced by the Western world in 1980 resulted in a slowdown in new mine development, evident in the relative scarcity of major new base metal projects. This could lead to short term supply/demand anomalies within the next few years which, in turn, could have a significant effect on metal prices, according to Mining Magazine (Jan. 1981). World Mining (Sept. 1980) noted that US mining strength is in open pit operations. A much lower tonnage is mined underground and is centralized in trona, uranium, lead, zinc, molybdenum, potash and, to a lesser extent, copper. The most notable increase in new underground mines has been in Wyoming's trona district where new mines are being developed and production will increase, the magazine said.

Jan 5, 1981

By Dennis Keay, Barbara Schickner, P. L. Longenecker, Glenn J. Philips, Lee Rice, Herman E. Knight, Wayne E. Veneman, B. W. Washington, Robert S. Hess

The outlook for coal continued to improve in 1980, fueling expectations that a long-awaited boom is at hand. The surprising surge in coal exports contributed to the latest wave of optimism. Overseas exports hit 66 Mt in 1980, buoyed by a significant increase in demand for steam coal, up from 1979's 2.3 Mt to 15 Mt in 1980. US coal production rose 6.9% to 750 Mt in 1980 and total coal consumption increased 8.1% to about 725 Mt, due primarily to higher world oil prices and setbacks in the US nuclear power industry. Yet the industry is beset with problems-both internal and external. Although demand for US coal is growing, the industry's excess productive capacity is estimated at over 90 Mt/a. Public utilities, where real increases in coal consumption must come, are still moving slowly, blaming delays on antipollution equipment costs. Coal supplies are uncertain, subject to the vagaries of the UMW. For the sixth time since 1964, the coal industry and UMW failed to renew their labor contract without a national strike, reinforcing the perception held overseas that the US is not a reliable supplier. The expected boom in coal exports will, in part, depend on our ability to assure foreign buyers that US sources are dependable. The US industry is also plagued by inadequate facilities linking mines and consumers: inadequate rail systems, coal ports, and barges, For US producers to be competitive, ports must be expanded, rail lines improved, and harbors dredged to allow 136-kt ships to load coal. The im¬provements will require an enormous commitment and investment. Despite these major problems and unresolved issues, two factors continue to favor an increased reliance on coal as an energy source: abundant US reserves and coal's comparative price advantage. Coal's performance in the 1980s may at last exceed its promise.

Jan 5, 1981