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By Boyd Wise

A jet pump injector was developed and successfully tested, thereby demonstrating the feasibility of a jet injector for introducing coarse coal into an operating slurry face haulage system: In Phase I a variety of injection concepts were evaluated, and the jet pump was identified as best, due to its simplicity, compactness and performance potential. In Phase IIA subscale jet pump injector tests were conducted, and a computer model of a jet pump injector was developed whose performance predictions correlated well with subscale test results. In Phase IIB various system configurations were defined for integrating a jet pump injector into a fully operational underground coarse slurry face haulage system, further highlighting the feasibility and practicality of such a system. In Phase III a full-scale mobile haulage vehicle embodying a jet pump injector and coal sizing equipment was detail designed into a practical vehicle with attractive performance characteristics. More importantly, fully operational full scale jet pump injector -and feeder/breaker subassemblies were tested and proven successful in their ability to down-size coal to 3" in all 3 dimensions and to consistantly provide slurry of 4217 weight concentration at 6.4 TPM throughput under a wide range of operating conditions including zero to maximum feed rate within 5 seconds.

Jan 1, 1985

By G. Styles, K. Lye, R. Tenbergen, M. Mayhew

Requirements to produce a higher bulk concentrate grade have necessitated extensive use of on-stream analyser data and computer programming to obtain the targets set for Frood Stobie Mill as required by overall milling considerations.A brief history of milling process changes associated with the changes from a low grade (3% Ni) bulk concentrate in the sixties to a high (6 to 8.5%). Nil bulk concentrate currently will be presented.The heart of the presentation will be the computer control schemes for ""self optimisation"" of the distinct flotation sections in the plant within certain restraints to achieve targets set by the mill metallurgist.

Jan 1, 1985

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Jan 1, 1985

By David L. Veith

This Bureau of Mines bibliography of U.S. and Canadian literature pertaining to revegetating coal-mined lands contains 805 references published from 1977 to 1984. Each reference is evaluated by keywords, providing the reader with a means of rapidly sorting through the references to locate only those dealing with the coal mining region and subject of interest. All references are annotated. Other sources of information are given, including Office of Surface Mining (OSM) and State reclamation agencies and other published bibliographies.

Jan 1, 1985

By I. A. Tinto

Labrador City is located in the southwestern portion of Newfoundland-Labrador, approximately 965 kilometers north-east of Montreal. The mine and beneficiation complex of the Iron Ore Company of Canada, known as the Carol Project, is situated 535 metres above sea level in a climatic region characterized by cold winters and short, cool summers. History The iron Ore Company of Canada commenced work in the area in 1949, however, it was not until 1958 that the decision was made to proceed with mining operations. The ore body consists of Specular Hematite (Fe203) and Magnetite (Fe304) with small quantities of Limonite and Geothite. The average grade of the ore bodies is 39% iron.

Jan 1, 1985

By H. E. James

Much has been said and written about the need to reduce South Africa&apos;s dependence on gold. To compensate for the decline in the country&apos;s foreign-exchange earnings resulting from the phasing out of gold, which must inevitably occur at some future date, a far higher priority will have to be placed on the mining, beneficiation, and export of the 59 other mineral commodities produced in South Africa. The basic strategy of the mining and metallurgical industries should be to move from the traditional approach of establishing a resource base to the establishment of a market base; to turn from production orientation to market orientation; and to rely less on exploration and economies of scale and more on process innovation and product development. The enthusiasm, entrepreneurial spirit, and commitment of the leaders in the mining and metallurgical industry will clearly be of decisive importance in the establishment of new industries for the beneficiation and export of added-value mineral-based products. The State can make a significant contribution by the provision of a welldeveloped and efficient infrastructure, including rail and harbour facilities, communications and health services, roads, and of electricity and water supplies. In our search for a new development strategy for the beneficiation and export of South Africa&apos;s minerals, we need to recognize that no one nation has all the mineralresources that it needs. Commercial and strategic manipulation of mineral supplies should no longer be tolerated. The future of the human species lies in international cooperation and in a greater understanding of the limitations of the world we live in.

Jan 1, 1985

By Richard J. Stoehr

In his time on earth, man has mined about 93.3 kt (3 billion oz) of gold. About one-half of this has been produced in the past 35 years. Roughly one-third of this gold is held as reserve in Central Banks. One-third held is in personal reserves. And one-third is held as jewelry or other fabricated products. The world per capita availability of mined gold is increasing. There are many forces shaping gold&apos;s future. Gold currently has a favorable exchange ratio. This is encouraging many new gold mining developments. Production is increasing and new recovery techniques are surfacing. The use of gold in the financial markets is increasing in some unique ways. And gold is again fulfilling its role as a universal money, making its future predictable. Gold Today Man is currently mining gold at the rate of about 1.4 kt/a (44 million oz per year). This adds about 1.5% of newly mined gold to the total supply each year. This production plays a small role in the pricing mechanisms since much of the 93.3 kt (3 billion oz) mined is available to the market in some form. The 31.1 kt (1 billion oz) held by central and international banking

Jan 11, 1984

By Edward H. Jr. Boyle, Paul R. Thomas

Introduction It is estimated that nearly 40% of all the gold ever mined in free world countries has been produced by South African operations. There is concern that this immense productive capacity will soon decline. Such a decline could reduce world gold supply and lessen the ability of market economy countries (MEC) to exert the major influence upon the world gold market. This paper addresses three general issues concerning South African gold production: • How much gold remains to be recovered from the demonstrated resources of the 44 evaluated South African mines; • How long can production at current levels continue; and • What will be its cost. Table 1 provides production data on the world&apos;s 10 largest producers for the years 1971, 1981, and 1983. As shown, South African gold production declined significantly from 1971 through 1981. As of 1981, annual South African gold production had dropped by more than 311 t (10 million oz) in 10 years. Despite this, its mines still produced 656 t (21 million oz) that year, about half the world total. From 1981 through 1983, this trend was reversed. Annual South African gold production increased by more than 21.8 t (700,000 oz). The trend reversal was also evident in the US, Canada, and Australia. This illustrates the general, inverse relationship between gold price and gold production. In South Africa especially, as gold prices increased substantially during the 1970s, the average grade of ore mined (pay limit) was lowered as new, lower grade areas and materials were exploited. Gold production declined in volume. But gold revenues increased, and the lives of the operations were extended. The 1981-83 period was one of declining (US dollar-based, average annual) gold prices that resulted in increasing South African production as average ore grades were raised. South Africa currently accounts for 50% of world production (Fig. 1). Figure 2 illustrates South Africa&apos;s contribution to total MEC production in 1971 and 1983. Although South Africa&apos;s relative share of production has declined, it still represents the single most important source of new gold supply. In 1983, it supplied more than 65% of total MEC production. South Africa currently produces more than twice as much gold as the Soviet Union (ranked second in world production), and 11 times more gold than the US (ranked fourth in world production). Barring major discoveries, South African gold production is expected to peak in 1987 and begin to decline again throughout the 1990s. The rate of decline is ex-

Jan 11, 1984

By William H. Dresher

Introduction A subject long debated but rarely resolved involves the interaction between the academic community and industry in the sponsorship and conduct of research. The subject is, unfortunately, too often treated as a controversy involving ethics and the profit motive. But, in fact, the two branches of society - industry and academia - are necessarily part of the same system. In the last 25 years, the realization has developed that research alone is not sufficient to bring about use of those results to benefit society through productivity gains and economic growth. The flow of events shown in Fig. 1 was generally believed to be the steps required for reaping the benefits of research. Today, research still has the very important role of creating new information or new ideas. However, it is recognized to be but one of many steps in a process that we now refer to as technological innovation. Charpie (1967) said, "Technological innovation is the driving force behind economic growth in the US. In this context, innovation means the process by which a new idea is successfully translated into economic impact within our own society, by providing better products, and simultaneously creating new jobs in the manufacturing of those products. Only after an investigation is put into sufficient use to have an economic effect, is it termed an innovation." One of the best depictions of the technological innovation process is shown in Figs. 2 and 3. These are adapted from Haeffner (1975), and modified by the Committee on Mineral Technology of the National Research Council (1981). Figure 2 identifies the many steps involved in the process. It designates a generalized form for interaction between the academic community and industry. Figure 3 identifies the steps in the "innovation activity" box of Fig. 2. Academia is generally responsible for developing of new knowledge and ideas, as well as maintaining and enlarging the collected body of scientific knowledge. Industry is responsible for developing new products, methods, and processes. Both institutions operate for the benefit of society, but under different driving forces. In academia, the driving force is the achievement of academic excellence. In industry, the driving

Jan 10, 1984

By Badiozamani Khosrow

Introduction The mining industry has been using computers since the late 1950s. Despite this early start, the use of mine planning software is not a common practice in many operations. But the trend might be changing because of the availability of relatively inexpensive personal computers (PC). The introduction of these machines has generated unprecedented interest by mine managers to computerize their planning operations. However, some managers have become disappointed with the PC&apos;s lack of adequate software and the inability to handle the massive amounts of information required for modeling. This paper is an attempt to shed some light on the future of computers in the mining industry. It will examine: • historical progress in the computer industry, • future advances in the computer industry, • historical usage of computers in mining, and • future alternatives available to mining. Historical Progress The computer industry has come a long way since the first full-fledged electronic digital computer Electronic Numerical Integrator And Calculator (ENIAC) was built in 1946. This machine weighed more than 27 t (30 st). It contained 19,000 vacuum tubes, occupied 139 m2 (1500 sq ft), and could perform 5000 additions per second. By contrast, today&apos;s fastest, commercially available computer is the CRAY-X. It weighs less than 5 t (6 st), has no vacuum tubes, occupies less than 9 m2 (100 sq ft), and performs over 100 million operations per second. This is an incredible advancement in less than 40 years. One person commented on the rate of advancement in the computer industry. He suggested that if the auto industry had advanced at the same rate as the electronics industry, we could buy a Rolls Royce for $2.75 and it would run

Jan 9, 1984

By Paul L. Russell

Introduction As the US and world population increases, so does the problem of supplying expanding energy needs. Early requirements worldwide were mostly met by abundant forest vegetation. Man&apos;s large scale use of minerals-energy resources is a fairly recent development. It occurred only during the past 200 years. Coal was the first mineral fuel to be used extensively. It was not a large factor in US energy production until the beginning of the 19th century. Petroleum and natural gas use is about 125-years-old. Electricity generation by falling water is about a century old. Atomic energy is only about 30-years-old. Extensive use of it is still in the future. Solar energy is in its infancy. Other energy sources such as wind, peat, and geothermal energy are minor and primarily of local importance. There were three main features of the fuel supply picture during the past 125 years. By 1900 coal replaced wood as the principal energy source. Since 1900, oil and gas have captured many coal markets. And after the mid-1970s, there was a resurgence of coal usage. (Figs. 1 and 2). Wood Until the advent of mineral fuels for energy, the major global energy source was wood. But populations increased and became centered in towns and cities. The problem of a sufficient energy supply first developed as nearby, easily obtained wood was exhausted. This problem became more acute as industries such as shipbuilding, smelting, and pottery making, became more widespread. Results of wood use as an energy source and building material are starkly evident in areas of the world where civilization is oldest. Entire forests were consumed and have never been replaced. In the US, wood supplied 90% of all fuel requirements until about 1850; and more than 50% until after 1880. By 1900, wood still supplied 20% of all energy uses. In the mid-1970s, energy costs increased, due largely to the oil embargo. This increase resulted in an increased wood demand for domestic heating. While large quantities of wood were being used, its share of the total energy market was still less than 3%. By 1983, wood was becoming increasingly scarce and more costly near most large US cities. Wind Wind powered ocean vessels for many centuries. Sailing ships were still common in 1900. Windmills provided an early, cheap energy source and continue to be used today on farms. Design and development of windmills for electricity generation is being conducted. Interest in wind power is growing worldwide where availability of wind currents warrants the investment. Also, US regulation requires power companies to "buy back" electricity generated by windpower in excess of that used by the windmill owner. Coal By the 1600s, England was producing, 900 kt/a (1 million stpy) of coal for heating and other uses. The first coal-fired blast furnace for iron smelting was developed in 1621. Coke-making was developed in 1755, and Watt invented the steam engine in 1769. Illuminating gas made from coal was introduced in London in 1800. During this same 200-year period, France and Germany developed coal production, but on a smaller scale than England. US, bituminous coal was mined near Richmond, VA, as early as 1748. Major bituminous coal-producing states in the early period were Pennsylvania, Virginia, Ohio, Kentucky, Illinois, and Maryland. West Virginia replaced Virginia as a major producer, when that state was formed in 1863. As the US expanded west, new coal deposits were found and exploited. Indiana, Alabama, Tennessee, Iowa, Kansas, Missouri, Washington, Colorado, Wyoming, Arkansas, Oklahoma (Indian Territory), Montana, New Mexico, and Texas had significant coal mining operations by 1900. Today the eight major coal producing states are Kentucky, West Virginia, Pennsylvania, Illinois, Ohio, Virginia, Wyoming, and Montana. These states accounted for about 80% of all coal (lignite, bituminous, and anthracite) produced in the US during the past several years.

Jan 8, 1984

By Thomas D. Kaufmann

Introduction Mining has always been sensitive to the fluctuating income of downstream customer industries. The industry is now becoming more vulnerable to booms and busts as economic pulsations increase and demand for mining products shows little or no long-term growth. As the general economy has become more cyclical in the last decade, the capital-intensive primary industries have become more aware that timing as well as preparation of survival plans are vital in investment decisions. Strangely, however, some of us have not yet included the business cycle in our feasibility studies. Cyclic prices and volumes and fluctuations in profits and cash flows do not fit our linear models. The increased cyclical nature of our economy is recent and poorly understood. Forecasting peaks and troughs is still more an art than a science. Nevertheless, avoiding business cycle parameters can lead to error in value estimation and contingency planning of new projects. Metal and Mineral Industries More than half the iron and steel, aluminum, copper, lead, zinc, manganese, tin, nickel, molybdenum, cobalt, and chrome that we mine, smelt, upgrade, and recycle goes to construction, transportation, capital goods, and consumer durable industries. All are cyclical. Their products are consumed slowly, so replacement can be postponed in recessions. Purchases of such goods are usually financed by debt, and their customers are sensitive to highly cyclical changes in interest rates. During prosperous periods, people tend to buy capital goods despite high interest rates. Upstream industries also tend to be whipsawed by inventory cycles. With high interest rates and good transportation, downstream fabricators can lighten their inventories during recessions. They know that upstream suppliers can deliver supplies and raw materials immediately, And, with the advent of electronic accounting, the fabricator with timely inventory information can afford to hold fewer contingency stocks. Likewise, when recovery returns, inventories surge back through industry pipelines, accelerating demands on primary supplies. The price elasticity of most primary products is low. Their share of the value of finished products of the industries they supply is generally small. The 60 kg (130 lb) of aluminum in a car is vital. But whether it costs $80 or $130 will not visibly influence the demand for an automobile. With low elasticities of demand, the primary producer is hit with decreases (or increases) in prices and in sales volume, during recessions as well as recoveries.

Jan 6, 1984

By A. Tobey Yu, W. Joseph Schlitt, Alfred Weiss, Frederic L. Kadey, Louis Kuchinic

Introduction The February and April 1984 issues of MINING ENGINEERING have already provided introduction to the long-range planning efforts of the Society of Mining Engineers (SME). These efforts are intended to provide the basis for effectively maintaining and improving the Society in the face of the changes that are besetting the mineral industry. This requires that SME recognize what changes are occurring and determine how these will impact the membership. Then a plan must be developed and implemented so that the Society successfully meets the challenges of the next decade. The Board of Directors has charged the Long Range Planning Commission with the responsibility for meeting these goals. This article provides a summary of the work done by the Management and Organization Committee of the Long-Range Planning Commission. This committee&apos;s task was to analyze the Society&apos;s current organizational structure and management process. Then a set of recommended improvements was to be developed. In doing this, the Committee has been careful to operate under that popular axiom, "If it ain&apos;t broke, don&apos;t fix it." Thus, changes were not proposed simply for the sake of change, but only where the present system appeared to be less effective than desired. Bases For Action The Committee began by establishing a set of premises about SME and its membership. These premises provided the bases for subsequent actions and recommendations by the Committee. Highlights from the premises included: • The Society should be run on a business-like basis. However, its "business" is that of a not-for-profit scientific, technical, and educational public institution. SME enables professionals involved in or associated with the mineral industry to serve the public purpose of benefitting mankind. • The Society operates as a national (US) organization with transnational (worldwide) interests. It recognizes its obligation to make its goods and services available to minerals professionals throughout the world. In addition, the Society recognizes its obligation to translate technology for the "lay" public, who then also become users of its goods and services. • The Society&apos;s Board of Directors is the policy-making body of SME and has final approval of all programs. These responsibilities will become greater when the Society becomes a separate corporation. • At present, the Society provides the following goods and services: publications, meetings/programming/short courses, academic education support, information dissemination - internal and external, and individual member services. • Planning is an ongoing process. It is best performed on a decentralized basis. That is, each major service category should have a responsible group authorized to conduct planning for that category, subject to the Society&apos;s master plan and the Board&apos;s approval. • The Society is privileged to have highly qualified and motivated members who volunteer their time and efforts on behalf of the Society. The best of these volunteers should rise to the highest positions of leadership - the Presidency of the Society and Institute (AIME). • The Sooiety is strongly committed to the protection and promotion of the history, traditions, and identity of AIME and the use of AIME as the unifying forum for the Constituent Societies. Identification of Potential Problems Once the premises about the Society and its membership were well in hand, the committee began examining the many facets of SME&apos;s organizational structure and management process. This was done in order to identify problems or potential problems in these areas. After considerable review and discussion, 10 areas of potential concern were called out for more detailed study and possible recommendations for improvement. These 10 areas include: • A lack of continuity at the Board level and among officers due to the established turnover policy. • A series of subboards that serve, by practice, to diffuse management authority and accountability, rather than enhance it. • A question as to whether the dissemination of information has been adequately planned, organized, and staffed. • An apparent illogical divisional organization. Two divisions are discipline oriented and two are commodity oriented. • A regional organization that does not adequately fulfill its purposes. • Uncertainties about the per-

Jan 6, 1984

By Thomas C. Shapiro

This is the final article in a three-part series on microcomputers and application software in the mineral industry. The first article covered microcomputer terms and concepts. The second discussed exploration and mining software. This article will examine plant, administrative, and geotechnical software. Every effort has been made to be current in the latest software developments. Rapid change, however, is a fact of life in the computer world and any omission is inadvertent. Introduction Geotechnical disciplines have received considerable attention in software programming. Calculations are repetitive and the formulas needed to solve them are not extremely complicated. These programs are ideally suited to the microcomputer and the microcomputer is ideally suited to the consulting geologist or engineer, due to its low cost and reliability. In fact, the advent of the Apple (a registered trademark of Apple Computer Inc.) and, more recently, the IBM personal computer has caused an explosion of inexpensive software programs available to the microcomputing public. Another area that has benefited from computerization, although not in the same way, has been mineral beneficiation. Here, process control for start-up or phase-down operations has been used in newer plants for some time. Programs to perform various calculations are becoming more common as micros increase in number. Tappi Journal has a section with solutions to handheld-calculator and microcomputer problems. Process Modeling Most process modeling is still done only on mainframes. One such program is called ASPEN PLUS (a registered trademark of Aspen Technology), and a one-week course is recommended so the user can best use the program. This program is available through timesharing from University Computing Co. Programs to find an optimal solution using Linear Programming (LP) have been around for some time. Also, plant process simulation has been possible using simulation programs. Both simulation and LP are expensive to program and run. Although there are LP programs available for some micros, the user must be fairly knowledgeable about how to set up the problem. This is because each problem must be set up as a unique program that typically requires custom programming. There are some programs that can handle blending of mine crudes and examine economic parameters over the life of the mine. Plant Applications Areas relating to mine and plant applications with programs available for micros are maintenance, production reporting, inventory, accounting, and personnel scheduling. Maintenance Maintenance typically requires that certain jobs be performed in a particular sequence and parts be ordered with enough lead time for maintenance to take place on time. There is, therefore, a critical sequence of tasks that must be performed or the scheduled maintenance will not take place. Two answers needed for maintenance project scheduling are: what is the lead time needed

Jan 4, 1984

By M. J. Shulman

An algorithm used by the US Coast Guard to find lost objects is utilized to optimally allocate exploration efforts during initial stages of an exploration program. Based on classical search theory, the algorithm assumes a target probability distribution function, a detection func¬tion, and a cost function. The three Junctions are analogous to delineating areas of possible mineralization, choice of exploration methods, and exploration budget. Application of the algorithm is shown for a hypothetical target distribution. Using the maximum number of field days available as the cost function, the optimal allocation of effort is shown for different exploration methods, e.g. electromagnetic survey and induced polarization. The adaption of the algorithm for the exploration process is discussed.

Jan 3, 1984

By Thomas C. Shapiro

This is the second in a series of articles on microcomputers and applications in the minerals industry. The first article (ME, Feb., page 129) discussed microcomputer terms and concepts. This article will discuss software for geology and mining. The third article will cover plant, administrative, and geotechnical software applications. Introduction Geology and exploration are areas where computers have a natural fit. Large volumes of data need to be tabulated, evaluated, and made into maps and reports that allow geologists and management to make a decision on a project or mine. Until recently, the programs that performed these tasks were cumbersome and not user friendly by any stretch of the imagination. Learning time to become an expert in these programs typically would be six months or more. The computers needed to run these programs are expensive mainframes. Several years ago, the use of minicomputers became popular because of their lower cost. Programs were adapted to fit these smaller machines and became friendlier. With the advent of micros, many programs. were rewritten and used the screen capability more effectively, thus providing a real advance in user interface. Programs and Price The definition of micro, mini, and mainframe is becoming blurred. For the purposes of this article, micro refers to either an eight- or 16-bit computer, costing less than $10,000 and, more typically, under $5,000. Mini refers to a 16- or 32-bit computer that typically costs more than $25,000. Mainframe refers to a 32-bit or larger computer that costs more than $250,000. There is a large gray area between micros and minis, and minis and mainframes. Technology and prices are changing so fast that the traditional definitions have become almost meaningless and price has become a better guide. With the arrival of the minicomputer, costs for hardware began to fall, but the programs have tended to remain unfriendly. In some cases, the minicomputer acted as a front end to the mainframe. Cost of both the programs and minicomputers could easily run a minimum of $70,000. A total cost of $200,000 would not have been out of line. The average geologist and company would have a great deal of difficulty justifying such a purchase. The advent of the microcomputer has changed all that. For $3,500 to $5,000, one can buy a 16-bit micro and a printer. Plotters with six pens are available for $2,000 that will produce a 280- x 430-mm (11- x17-in.) map. For several hundred dollars, software is available to act as a word processor, an economic spread sheet, or to perform ground water calculations. In fact, some programs are available for free. Some of these programs are relatively easy to learn. In addition, programs are being developed daily that are easy to use. More importantly, large programs that once ran only on mainframes are being converted

Jan 3, 1984

By M. Guney, A. R. Bell

In Mindola mine on the Zambian Copperbelt, there is a plan to extend the current production level of 1.2-1.5 km (3,900-4,900 ft) with five additional production levels. Research work indicated that the present total heat output of 38.6 MW will inevitably increase to 63.2 MW in 25 years. Estimated WB and DB temperatures, representing the total heat generation in stope faces and development headings during these same periods are predicted to increase to 33.8/40.2°C (93/104°F) and 35.3142.10C (95/108°F) respectively. It is assessed that the nominal refrigeration capacity needs to be progressively increased to 9, 000 MW.

Jan 3, 1984

By Frederick H. Raab

An electromagnetic (EM) system for the location of trapped mine workers at coal-mine (300 m) depths has been developed. The use of such a system in deep mines (1-km depth) requires transmission at extremely low frequencies (ELF) and a reduction in the effective noise level beyond that which can be obtained by acceptable Integration times. Automatic-noise-cancellation (ANC) techniques reduce the effective noise level by combining several received signals that contain correlated noise. Such signals can be obtained either from a remote magnetic antenna or a local electric antenna. During Phase III of this program, real ELF noise data were acquired and used to test the ANC algorithms developed during Phase II. The ELF noise data were obtained from analog recordings made by Develco under another Bureau-of-Mines contract. Digitization was accomplished by an ND converter that was added to a GMRR computer. Phase III tasks Included preparation of software for digitization, computer-computer communication, data processing, and statistical analysis. Useable data were obtained from eleven half-hour tapes containing noise from one axis of the primary antenna and three axes of the remote antenna. The overall average Improvement in SNR was 4.1 dB. However, the average Improvements for the Individual X, Y, and Z axes were 4.2, 11.9, and -1.9 dB, which roughly follow the observed noise power. Nonlinear processing was not effective with this noise.

Jan 2, 1984

By A. M. Radigan, W. G. Prast

M.S. Azun The authors&apos; paper did not explain the facts and reasons why state companies are established and what their role is in international industrial mineral trading. Also, I do not agree with the conclusion implying that the main goal for state companies is to capitilize natural resources. Almost all state companies are founded by certain laws and their activities are arranged by state regulations. Their only aim is to operate mineral deposits for their people and to protect the rights of the people. Although some ore deposits, such as nonstrategic or small, may be exploited by privately owned companies, the state has the right to control the operation and production. Activities of state companies may or may not be widened because of the character of the deposits and the importance of the mineral market involved. For some countries, although governments may occasionally change hands, the policy of the mineral trading system is not affected by this change. There is no doubt that any government desires to make more earnings to increase GNP, when it is involved in operating and trading mines. It wants to produce and sell the finished products, instead of unprocessed ones, if possible. When it is known that some mineral deposits are relatively rare, such as Turkish boron deposits, the government can nationalize the mines to control production and affect the market. If there is an abundance of a certain mineral in the market, the government can cut production and set a floor price, such as Canadian potash. Also, when production of a specific mineral is unique, such as Turkish chromite, the price of such mineral may be set by correspondant government. One may add that if some governments with their state companies produce a certain mineral in a larger amount, they may decide to establish a cartel to protect their production and price. These are the facts followed by government-owned state companies and partially government-owned companies. The reason being charge of many deposits by the state companies is always the same: "protect" the mineral rights of the people.

Jan 2, 1984

By Don L. Deardorff

The Deserado Mine and transportation system is the fuel supply portion of the Bonanza Power Plant project. Deserado Mine con¬sists of an underground mine with a capacity of 1,224,700 tonnes (1,350,000 tons) of clean coal per year, a 649 tonne (715 tons) per hour closed water circuit jig type preparation plant, a 5.6-kilometer (3 ½ -mile) overland conveyor with covered slot storage, a unit train rail load-out and 59.5 kilometers (37 miles) of totally independ¬ent, captive electrified railroad. Planning and exploration started in March of 1978. Construction of all facilities was completed in April of 1984, approximately six years after initial planning was commenced. This paper will discuss exploration, environmental permitting, mine planning, engineering and construction of the Deserado Mine project.

Jan 1, 1984