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DR. BANOWSKY: Thank you very much. That was the shortest introduction that I have had lately, and I didn't have time to get my coat on. But I appreciated it, and I'm delighted to be here with an industry with which 1 feel strong affinity. At the University of Oklahoma we have an energy history. We are a little more currently involved in oil and gas, and those of you who know the history of our state would be aware we have an early coal development back really before the turn of the century in the southeast part of our state what we call Little Dixie. How many of you have spent anytime in Oklahoma or are from the state of Oklahoma? I'm not going to ask how many are from OSU or the University of Colorado. We did send you a football coach here from Oklahoma, and 1 see you have exchanged him. Several of you were only interested in the lobby in asking about our football team this year. 1 would like to go somewhere where we can talk about something besides football. I'm just trying to build a University that our football team can be proud of. We're going to be strong again. 1 can assure you. We've got the best football team money can buy. It's not quite as bad as the college president who called the coach in and said, "Coach we're in trouble, you're losing games and the alumni is very unhappy." "What can we do?" the president asked. The coach said, "Well the football team is flunking the admissions test. We can't get them in with the standard achievement and SAT tests." The president said, "What can we do?" The coach said, "Well the coaching staff has substituted for the American College Test the simple fill in the blank questionnaire." The president said, "Let's use it. We have got to get the team in." The first question was, Old MacDonald had a (-). And a couple of the big tackles were taking it and one of them said, "Hey, what did Old MacDonald have?" His friend said, "Stupid, Old MacDonald had a farm." "Well how do you spell farm?" He said, "Stupid, e i e i 0." Now the gentleman who met me at the registration line from Lakewood, Colorado, was asking me about one of our great big tackles; and he is doing well. We call him Doctor Death; he is also a wrestler and that gentleman said, "1 don't know how bright he is." 1 said, "He is bright enough for our academic tutoring that he is going to get through all right." So I'm delighted to see you and be here with my very dear friend, Carl Terzian. Carl and 1 were in Los Angeles together for 10 or 12 years when I was president of Pepperdine University. He and I are exactly the same age. Born in 1935 and 1 a month or two later in 1936. Fewer children were born in that period than in any other period of time in this century. For those of you who remember anything about that period, you will know why no one was having babies during that period. But Carl called and said, "Bill do you know where Vail, Colorado is?" Well when you live in Oklahoma, you learn where Colorado is in a hurry. 1 not only know this beautiful area, but have made too much of an investment here at a place called Beaver Creek. The real estate is cheap over there. 1 play regularly in the Gerald Ford Invitational Golf Tournament here. Hope you will visit Beaver Creek. It's just 10- 12 miles to the west. The sight of the 1976 winter olympics until the people of Colorado voted them out. And now Vail Associates and I are good Oklahoma families. Bass family, Harry Bass of course, many of you know this story, who is chairman of the Board of Vail Associates, is making quite an investment in that year-round resort area. Beautiful golf course now. You can come out and afford the green's fee and beautiful, beauti-

Jan 1, 1982

By Lyman H. Hart

Some of the significant facts that will affect the supply and demand for metals during the next few decades are given in this presentation. This is important because the only hope for intelligent guidance of the national destiny depends upon presenting a consistent and accurate picture of basic problems. The metals problems now fomenting are only slightly less important than those precipitating the energy crisis. Admittedly, it is difficult to generate serious thinking on this subject when the world is enjoying easy access to all metals at modest prices. This is possible because of the current world capacity to over-produce, and United States credit standing, at least up to now, has permitted buying freely on world markets. Although both these vital conditions are subject to change, there is little doubt that if the U.S. financial house is kept in order, we can muddle along for a while on a generally expanding, metal-based economy. But should our credit standing be permitted to collapse, or should there be a tightening of world supplies of metals, the nation would immediately find itself in trouble. Unfortunately, clear signals indicate that both of these conditions are threatening. The metal age started many centuries ago, and with the exception of the noble metals, barely a dent was made in world reserves until the present century. Then, as a result of the pioneering ideas of D. C. Jackling and Paul Gemmel, and the willingness of the McNeals, Penroses and Guggenheims to back ideas with money, a virtual explosion of metal production was propagated throughout the world. It is important to examine the causes of this expansion to determine whether it is a trend that may be sustained or whether it is anomalous and therefore attributable to circumstances not likely to be repeated or continued. This period of plenty is a once only phenomenon. Vast metal resources have been sitting around here for eons, while the world was unaware of or unconcerned with their existence. But when population began to grow exponentially, and ways were discovered to use metals to develop machines to do the work of men and animals, the exploitation of raw materials increased at a staggering rate. And now the realization is dawning that minerals are a wasting asset and are beginning to present supply problems that should begin to be of concern. Two main factors have caused this condition; One is the population growth, and the other is the expanding demand for irreplaceable raw materials as nations become more developed. A group of systems analysts, at Massachusetts Institute of Technology in a book Limits of Growth, has warned that at present rates of population growth and resource consumption together with environmental constraints, a point will be reached within 100 years when the world population will become totally incapable of supporting itself. The authors conclude that this end result could be avoided if a planned equilibrium could be established at a lower rate of population growth and resource consumption. Fortunately, there is evidence that the population problem is moderating. The growth rate in the U.S. has decreased from 2.3% per year in 1900 to 1.1% in 1970. But, even at the lower rate, population will double in 70 years. The world rate is greater, and if it continues, world population will rise from 3.5 billion to nearly 10 billion in 50 years. All of these projections are questionable because the dangers of growing population are now being recognized. A marked decrease in growth rate has been noted in the more developed countries-in fact, it was zero in the U.S. in 1972. The other factor affecting consumption of raw materials is the increase in per capita use of most items as individuals become more affluent. Many economists believe that developing countries such as China and India represent a vast future potential market; but there are others, with whom the author agrees, who believe over-population tends to stagnate development. Nevertheless, it is a fact that vigorously developing societies increase consumption at a rate far above their population growth rate.

Jan 1, 1974

By Reaves. M. J.

The title of my talk, "What Happened to the Uranium Boom?" is old news. Certainly it is for this group. All of us that make our living in uranium know that the boom of the last half of the 1970's is over. U.S. production has been exceeding consumption by more than two to one. Mines and mills are closing and yellowcake prices have been dropping for over 20 months. The gloomy outlook for the industry in the near term has been well documented by soothsayers of various descriptions, your daily newspapers, and in the Nuexco Monthly Reports. I'd like to attempt to describe the next upturn in the market (speculate, really) based upon the clues we're seeing now. In order to do that, I'd first like to go over briefly, some of the market factors that contributed to the recent price drop and resultant production cutbacks, and then hypothesize on the way these factors are changing and will change. Market prices are greatly affected (maybe even entirely determined) by buyer perceptions. This is particularly true with uranium, because of the long lead times associated with nuclear plant construction and also with conventional mine/mill development. Before the price rise (say, 1975) utility uranium buyers believed that: 1) U.S. producers would have difficulty expanding to meet U.S. demand. 2) Australian and Canadian production was essential to avoid shortages in the early 1980's. 3) Uranlum prices would continue to rise as demand exceeded supply. 4) Enrichment capacity would become inadequate. It was thought necessary, therefore, to build enriched inventory in the early 1980's for use in the late 1980's. Artificially accelerated expansion of the uranium producer industry was necessary to accommodate anticipated enrichment demand. Current perceptions are largely the opposite. These are the beliefs that were held most of this year and late last year as prices dropped. 1) U.S. production is far in excess of domestic need. Contraction of the U.S. production lndustry is necessary. 2) Canadian and Australian supply is optional and not essential. Producers in those countries are expanding mainly by displacing higher cost production and not because they fill a void, 3) Prices may be essentially stable for some time. 4) Enriched uranium is in excess supply. That is 1981. 1982 is shaping up to look like this: 1) Prices will have bottomed out. (That is not Nuexco's opinion necessarily, by the way, but it is my opinion.) 2) There will still be substantial utility inventories, but fewer spot sales. 3) Canadian and perhaps Australian sellers will have made substantial sales in the U.S. and will be aggressively seeking more. 4) U.S. production will have been dramatically curtailed. U.S. utilities that wish to con- tract long term will have difficulty in finding domestic sellers. Concern will develop about the availability of U.S. production capability. Virtually all long term con- tracts signed will be with non-U.S. sellers. 5) An awareness will begin to develop among U.S. buyers that we are approaching a period of dependence upon foreign uranium (which will be true). The history of the uranium market has been one of dramatic changes and overreaction to those changes. The rapid price rise of a few years ago generated excess U.S. production capacity and the rapid price drop of the last two years will almost certainly result in too little capacity. It will soon be difficult for U.S. buyers to buy domestic material except on the spot market. The question is, "will they care?" The lack of demand, of course, is the underlying reason for the current poor health of the uranium industry. In 1972, 1973 and 1974 collectively, there were 105 nuclear reactors ordered in the U.S. That ordering rate was expected to continue and accelerate throughout this century. In 1975, 1976, 1977, 1978, 1979, and 1980 altogether, there were 56 more reactors cancelled than ordered. The net growth of our only customer since 1974 has been a negative 56. TO put this in perspective, if these 56 reactors were operating now it would more than double present U.S. uranium consumption. Underlying lack of demand is something that is simply not going to change in this decade. Time is going to be required. The NRC indicates that the maximum feasible number of new reactors that can be licensed each year is six. That would increase uranium consumption by only 10% per year. New reactors, if ordered tomorrow, would not generate new uranium demand until after 1990. Even so, United States' consumption of uranium will rise from the 1980 level of 18 million pounds per year, to

Jan 1, 1982

By Lowell T. Harmison

I appreciate very much the invitation to speak with you and the opportunity of bringing you messages from both the Secretary of the Department of Health and Human Services and the Assistant Secretary for Health/Acting Surgeon General of the U.S. Public Health Service. I would like to take this opportunity to congratulate you (the organizers of this Conference) on identifying the critical issues in the field and assembling such a broad array of experts to address them. I would like to present a brief view of the emerging framework for health that puts into perspective some of the aspirations of the Administration and to highlight several points with regard to prevention and occupational health. The goals are: 1. To improve the overall health status of our people. (This has been and will remain the National policy regarding health.); 2. To engage the Nation in the important effort of enhancing public health. (This is not reserved exclusively for the activity of the Federal Government or for State Governments. Public health has to be a cooperative effort that brings together all of the people engaged in the process of serving the people.); and 3. To pledge that health care will not be priced out of anyone's reach because of inflation. (It is clear that there are major tasks of bringing about economic recovery in our country. One aspect of this effort is to guard against the cost of health care not being allowed to rise beyond the reach of persons who need that care.) "How will these goals be achieved and what must change in the delivery of health and medical care in our society?" There are a number of real issues as well as perceptions that adversely affect the attainment of these goals: First, The cost of medical care is soaring and the public, industry unions and other elements of our society are becoming concerned. (They recognize the problem and are demanding a solution.); Second, There is a growing concern about the priorities that have been set. (For example, the evidence that preventive interventions are the most effective approach is overwhelming, yet medicine has not yet given that a high priority.); and Third, There is the perception that physicians do too much to too many people at too great a cost and that too much and too costly technologies are used. In view of the perceptions, we all must accept some changes and the challenges that needed changes will bring. A month before the new budget went to Congress, President Reagan went on nationwide television and told the American people that, "It is time to recognize that we have come to a turning point and we are threatened with an economic calamity of tremendous proportion and the [old business as usual treatment can't save us. Together we must chart a new course]." Now eight months down the road from this and a long Spring and Summer of discussion both within the Executive Branch and in the Congress, many plans and programs and concepts have emerged. The new course has been charted and the turning point has been made. Business as usual has been put aside and the Administration's leadership has been stretched and tested in putting forth a better approach with the reality that money is tight and that old habits of delivering care are difficult to change. The Congress has now given us a look at a new health budget that takes into account some of the harsh economic realities and that does make allowances for the persistence of familiar behavior. Against this background, it is now possible to begin addressing ways to provide health services to people at a price the Nation can afford to pay. There are without question difficult decisions involved but the Administration is committed to supporting and improving health care in America. It has been the President's contention that one of the principal causes of the inflationary spiral in the country was the steady and indefensible growth of the Federal budget. The problem stems from the fact that we have been living well, but beyond our means for nearly 30 years. Now we are discovering that there is a bottom to the barrel after all. It is possible for our society to run out of things like energy (oil), water or money. The health bills must be paid -- by Government, by insurance, by parents or by someone. Each year with a bigger shopping list and more money to spend the Federal Government went into the marketplace to buy. This action altered the

Jan 1, 1981

By John A. Ames

Webster's dictionary nearly equates portland cement with its current primary definition of cement. While such equation may be a triumph of common usage, the confusion between the terms cement and concrete unfortunately is very widespread. Full definition of cement properly would extend to many substances, but for purposes of this chapter cement is restricted to "varieties" of portland cement including "portland-pozzolan" cement. Among the usually recited historical notes concerning cement is that it was developed by the Romans. Their use of cement in the great structures of Rome, and even in the far corners of their Empire, such as Hadrian's Wall in the north of England, testifies to the antiquity of a major cement industry. From English sources we know of John Smeaton's carefully proportioned hydraulic cement mixed in 1756 and of Joseph Aspdin's patented cement to which, in 1824, he gave the name portland cement. (He claimed that his cement mortar looked like the famous dimension limestone quarried from the Isle of Portland on England's south coast.) The year 1971 marked the centennial of portland cement manufacture in the United States. A fair historical account of the many real contributors to the cement industry between 1756 and 1972 unfortunately would be too extensive for this chapter. Development of rotary kiln practice and burning at higher temperatures clearly was the major move into today's technology. As part of the 4th edition of Industrial Minerals and Rocks, this chapter on utilization focuses on inferred interests of the anticipated readers. The main period for which statistics are cited generally is that since the 3rd edition (1960) of this same volume. Cement manufacture is the processing of selected and prepared mineral raw materials to produce the synthetic mineral mixture (clinker) that can be ground to a powder having the specified chemical composition and physical properties of cement. Cement making incorporates a number of distinct steps, but it is characterized by the key pyroprocessing (or "burning") step, which brings about the necessary changes in the raw materials. This pyro processing is a chemical process. Conversion of large volumes of mineral raw materials into specification-controlled cement at relatively low cost is the objective. Statistics on the cement industry are of uneven quality. The U.S. Bureau of Mines (USBM) is the principal collector of available data. These statistics can be only as good as the quality of information supplied by the reporting companies. The data perhaps most often questioned relate to productive capacity of the industry. The questions submitted by USBM are valid, nevertheless, and the information gained from them, as good as is available, is what is generally used. The Portland Cement Association also is a source of much quality information. The year 1972 witnessed a test of the adaptability of cement industry statistics. This was the year of conversion from barrels and sacks of cement as the units of measure to tons and hundredweights. The barrels and sacks related to volumetric measures in that a sack was judged to be 1 cu ft (weighing a "standard" 94 lb). A barrel was 4 sacks. Volumes of concrete are stated in cubic yards, and the number of cubic feet of cement in a cubic yard of concrete was a sensible approach to the mensuration involved. However, cements do not weigh the same amount from plant to plant or from type to type, and the buyer was more interested in getting an assured weight for his money than in "buying air." Thus, a sack, in accepted practice, became 94 lb instead of 1 cu ft, and a "barrel" became 376 lb, regard- less of whether it would fit into 4 cu ft of space. With the de facto dealing in weight rather than in volumes, the awkward numbers made little

Jan 1, 1975

Visit to the Datsun Nissan Company's body pressing and assembly plant at Rosslyn, Pretoria, and the Claremont-Danville Tunnel on 27th February, 1970. The excursion arranged for the 27th February to the Datsun Nissan motor car assembly plant at Rosslyn, near Pretoria, in the morning and the Claremont-Danville tunnel in the afternoon was well supported by some 43 members. The visitors were met at the factory by Mr Rademeyer, the Industrial Relations Manager, and members of his staff and were taken to the artisan training centre for light refreshments. There is a well-equipped training section with an air-conditioned lecture hall; we were told that such training facilities were important because of the cosmopolitan nature of the artisan staff. The visitors were divided into small parties and taken to the tool die and jig-making section, which is perhaps the key department for a factory of this nature. There the many dies for the presses in the body pressing section, as well as the complicated jigs for body welding are made. The technique for making the castings for the dies is interesting. A polystyrene model of the casting is embedded in moulding sand. In a neighbouring foundry molten metal is pressed into the headers and burns away the polystyrene, which leaves no residue, and this exactly fills the space occupied by the model. This rough casting is then machined in large copying machines (costing as much as Rl80 000). An exact plastic model of the surface of the pressing required, set up in juxtaposition to this casting is traversed by a master stylus which operates the slave milling cutter, thereby machining the surface to close tolerances. The machined casting is cleaned up by hand and finally finished in large spotting machines, using a blue dye to show up high spots, to the fine degree of accuracy required. The body pressing section was next visited. There the large number of pressed parts which make up a vehicle body are pressed out of special deep drawing steel plate. Some of the largest presses were capable of applying a pressure of 1 200 tons and cost as much as Rl85 000 each. The visitors then followed through to the assembly section where jigs are used to hold together the many pressings, which are then spot welded into body frames. The frames go to an assembly line where they are finished to the stage for painting. The continuous crawl painting assembly line carries the frames through all the stages of prime coating with zinc phosphate sprayed on in a tunnel, followed by immersion of the lower parts in a priming bath, then drying and spray painting and baking in tunnels. The body frames, after painting, join another assembly line, where the doors, upholstery and many fittings are attached. After this stage the completed bodies are lowered onto and attached to the chassis units which are largely assembled from imported parts (engines, transmission units, etc.). From the end of the line the completed cars are driven off to the trial track and then pass through a tunnel with powerful water sprays to detect leaks in the body work. The proportion of locally made parts is just on 45 per cent. An interesting aspect of the assembly organization is that, of the 140 or 160 cars completed each day there may be included some of each of the Datsun model as well as some Renault and Alfa Romeo models models which are assembled by this company. The change from one model to another several times a day does not present any difficulty to the organization. Each section of the assembly plant 'buys' the units from the preceeding section and 'sells' to the succeeding section. This means that the responsibility of each section ends when the unit is sold to the next section. The cost of repairing any faults found subsequently is charged to the section where it is found, which puts a powerful emphasis on meticulous inspections between sections to safeguard their costs. After the tour the parties assembled at the lecture hall where a lavish cold buffet luncheon was provided by the company. After luncheon Mr A. R. C. Fowler, on behalf of the Institute, thanked the Managing Director, Mr W. J. Wilson and his staff for this most interesting and well organized visit. The party then left for the Claremont-Danville tunnel. The tunnel is being driven by General Mining Federale Kontrakteurs through the Daspoort Range, Pretoria, to link the suburbs of Danville, near Iscor, and Claremont, which at present can only be reached by a nine mile detour. It is estimated that some 6000 vehicles per day will use the tunnel. Before entering the tunnel a short talk was given by Mr Ross who is in charge of operations. He called on various officials and staff of the Consulting Engineering firm, Basil Read (Pty.) Ltd., to describe the tunnel and

By Tim Neil, O&apos

Acid rain legislation, the new tax package, excess coal capacity, the effects of low oil prices, how to increase coal exports: These were among the items discussed at the May 4-7, American Mining Congress coal convention in Pittsburgh. Some 2000 people attended the convention, which also offered 15 technical sessions. As always, the state of the domestic coal industry might be characterized as "long-term promise, short-term problems." And one of these problems is acid rain. Acid rain The proposed acid rain legislation in Congress could be the most costly piece of environmental legislation ever written. In its present form, the measure could cost the nation up to $110 billion over the next 15 years. Rep. Henry Waxman's (D-CA) bill, HR 4567, would mandate large reductions in sulfur dioxide emissions from coal-fired power plants. The bill has more than 150 Republican and Democratic cosponsors. Ed Addison is president of the Southern Co., one of the nation's largest utilities and users of domestic coal. Addison noted that America's electric utility industry buys and uses nearly 85% of the coal consumed in this country. He said Waxman's bill would drive up prices of low-sulfur coal, raise electric rates, and force miners out of work in high-sulfur coal regions. In repeating a standard coal industry response, Addison said the Clean Air Act is doing the job. In recent years, while coal use has gone up, S02 emissions have gone down. Current air pollution standards are producing cleaner air, he said. Despite concern over HR 4567, the bill's future is uncertain. Several coal industry executives and analysts predict the bill will die under weight of opposition from coal, utility, and steel interests. But the acid rain issue is gaining momentum. Future legislation of some kind is likely. Meanwhile, research continues to develop clean coal technology to deal with the S02 problem. Commercialization of these front-end technologies currently lags public sentiment for acid rain legislation. Ground water runoff and contamination is another area where future legislation would seem likely. Already, one bill has been introduced in Congress. A second is being drafted. The impact of such legislation may be significant according to Bruce Leavitt, a hydrogeologist with Consolidation Coal Co. He said if current proposals are adopted, there will be more federal, state, and local government involvement in ground water regulation. In any event, the coal industry can expect to see more emphasis on preventing acid mine drainage and on water replacement, according to Leavitt. He urged those in the coal industry to present information about mining and ground water. That is needed to prevent misdirected state and federal programs, he said. Another coal industry concern is excess capacity. The industry has the mines, equipment, and employees to produce 15% more coal than at present. Problem is, the markets are not there. Slower-than-predicted growth in electric utility coal use has kept sales sluggish. There are also tax uncertainties. Congress is considering repeal of the investment tax credit and elimination of black lung payments and excise taxes as deductible expenses. One analyst estimates the coal industry would lose $1.1 billion in five years, if the changes are approved. In addition, there are the usual concerns about excessive governmental regulations involving safety and environmental matters. Bill Kegel, for example, said these regulations mean extra costs and delays in developing mines. Kegel is president and chief executive officer of the Rochester & Pittsburgh Coal Co. More than half the electrical power in the US is generated by coal-fired plants. That percentage could slip by a couple of points as nuclear generators come on-line the next few years. About 1990, though, we will see the end of US nuclear plant construction. No new nuclear plants have been scheduled since 1978. So any growth in electric power use should benefit the coal industry. BethEnergy - High Power Mountain During 1985, BethEnergy - a Bethlehem Steel Corp. - subsidiary developed High Power Mountain, a 1.8-Mt/a (2-million-stpy) surface mine in West Virginia. Construction saw movement of more than 3 hm3 (4 million cu yds) of earth. A computerized 544 t/h (600 stph) heavy media cyclone prep plant and a 3.6-kt/h (4000-stph) railroad loadout facility were built in six months. And a 5.6-km (3.5-mile) railroad spur and loop bridging a major highway were constructed. Larry Willison of BethEnergy noted the project's ambitious construction schedule. It was forced by the need for the project to be market driven and - lacking available capital - externally financed. BethEnergy did several things before obtaining with Detroit Edison a market for 0.9 Mt/a (1 million stpy) of coal. Willison said his company prospected and proved the eastern half of its 8-km2

Jan 7, 1986

By W. S. Cavender

The Round Mountain mining district, Nye County, Ne- vada, was discovered in 1906 on claims owned by Lewis D. Gordon. Initial mining operations uncovered gold veins of spectacular richness, and within a few days of discovery, Gordon sold his controlling interest for some $87,000. From this sale emerged the Round Mountain Mining Co., predecessor of Nevada Porphyry Gold Mines, Inc., the latter destined to become the major property owner in the area. Vein mining in the district continued sporadically into the early 1930s, yielding 9.3 Mg (330,000 oz) of gold plus substantial silver credits from approximately 626 kt (690,000 st) of ore. In addition to the lode deposits, the early miners recognized the placer potential in the alluvial fan material accumulated around the west and north sides of Round Mountain itself. Intermittent placer operations were carried out for a number of years, and in the 1940s and 1950s, Round Mountain Gold Dredging Co. worked the placers under a lease from Nevada Porphyry Gold Mines. The last placer operation terminated in 1959 when it, like some of its predecessors, proved uneconomic. Total placer production for the district is estimated at 3657 km (4 million yd) of gravel containing 59 Mg (210,000 oz) of gold and possibly 2.0 to 2.3 Mg (70,000 to 80,000 oz) of silver. Round Mountain is a small hill situated on the east flank of the Toquima Range in central Nevada. The hill is com- posed of relatively flat-lying Tertiary rhyolitic ash flow tuffs, which overlie Paleozoic metasediments and Cretaceous granites. Throughout the surrounding Round Mountain mining district, most of the known gold ores occur in the tuffs, although the metasediments and granites are also mineralized. Mineralization is structurally controlled, principally by a series of northwest-trending shears and shattered zones. Vein, stockwork, and disseminated ores occur, usually containing simple quartz-pyrite-gold mineral assemblages. The gold itself is electrum, having a silver content of 30% to 40%. In September, 1967, Elwood Dietrich, a prospector and mine promoter, obtained a purchase option on the 4452 ha (1 1,000 acres) of mineral rights held at Round Mountain by Nevada Porphyry Gold Mines. The original option had a buy-out price of $1 million and was established through Dietrich's friendship with officers of Nevada Porphyry. In April, 1968, Dietrich conveyed his option to Ordrich Gold Reserves Co., a partnership created by a group of west coast investors, mostly employees of the airline industry. There- after, Ordrich invested considerable funds in trying to test and develop the property, but soon recognized the need to seek financial and technical support from the mining industry. In December, 1968, Dietrich contacted Wayne Cavender, then Regional Geologist, Southwest, for Copper Range Exploration Company (CRX) in Tucson, Arizona, and made a data presentation. Shortly thereafter, Cavender was appointed Manager of Exploration and Chief Geologist for Copper Range Co. (parent company of CRX), New York City, and he asked C. Phillips Purdy, CRX Regional Geologist, Northwest, to make an initial property examination. Purdy's one-week field study took place in March, 1969, and resulted in a recommendation that CRX pursue its investigation of the property. The presence of low-grade gold mineralization in both the alluvial gravels and in the bedrock was verifiable, but the placer was deemed to have the greater immediate economic mining potential. At that time, gold was in the $1.41/g ($40 per oz) price range. Working from Purdy's information, Cavender decided to attempt acquisition of the property, and the first in a long series of negotiations was initiated with Ordrich. Basically, CRX felt that the placer had a promising potential for several reasons, including (I) past operators had recovered free gold but not the gold contained in the pebble fraction of the gravels; (2) past operations appeared to have been ineffectively designed or managed and not costefficient; and (3) the price of gold appeared to be poised for an upward move. Negotiations with Ordrich were prolonged and difficult, with CRX competing against several ma* mining companies, but finally an agreement was reached, effective June I, 1970. Gold was then back to $35. It is believed that, in

Jan 1, 1985

By Robert B. Fulton

The objective of this chapter is to discuss the interrelationship between industrial minerals and chemical manufacturing. It is intended to supplement rather than duplicate the commodity chapters. Particular emphasis is given to the pertinent chemical element and to market factors. Condensing this broad subject into a few pages of this handbook permits treating only the most important elements derived from industrial minerals. Hydrocarbons, which quantitatively dominate as raw materials for the chemical industry, are omitted, as are the metallic elements and the minerals covered in other "use" chapters such as phosphorous, potassium, and nitrogen for fertilizers, and titanium dioxide for pigments. The remaining six elements of major importance are: boron, bromine, chlorine, fluorine, sodium, and sulfur. These elements are treated individually under separate headings. [Table 1] affords an overview of the main industrial minerals, the chemical products derived from them, and end uses of the products. Salt brines have particular importance as raw material sources for the chemical industry. Table 2 is a chart of the chemical compounds derived from four types of brines: (1) Owens Lake-type brines, which are sources of boron and sodium compounds; (2) Midland-type brines, from which bromine, iodine, and chlorides of calcium, magnesium, potassium, and sodium are derived; (3) Searles Lake-type brines, yielding boron, bromine, lithium, magnesium, potassium, and sodium compounds; and (4) Silver Peak- type brines, produced mainly for lithium. MARKET ATTRIBUTES Some of the important market traits common to industrial minerals used by the chemical industry are: 1. They are international commodities, such as fluorspar and sulfur, which largely move to foreign consumers. 2. Grade, and freedom from deleterious elements are important factors affecting their usability in chemical processes. An example is salt (NaCl) used in electrolysis where ultrapure evaporated salt is required to meet rigid specifications. 3. Purified products take on the characteristics of specialty items and command a distinctly higher price than the basic commodity from which they are derived. 4. In practically all cases, chemical users require some sort of cleaning or beneficiation of the naturally-occurring mineral to bring it to specification, and individual specifications may vary from user to user for essentially the same use. 5. In some instances it is necessary to strike a balance between what the vendor can supply and what the buyer requires, with the result that specifications have to be eased to afford the needed materials in marginal cases. 6. Because they tend to be bulk commodities, low cost for handling and transportation are important and such costs may limit the area from which a chemical user can draw his supply. 7. Shipments are usually in bulk and frequently in multiple-car, full-trainload or full-shipload lots to reduce transport costs, which in turn may require large terminal investment facilities. 8. Purchases are generally by contract of one year or longer term, with spot buying playing only a minor role. 9. Contract prices are usually fixed in short term commitments, but may vary according to assay, with premiums and penalties for content above or below the norm; however, general practice is for specifications to be fixed in the contract with minimums being set for the desired material and maximums for undesired elements. In longer term contracts, prices are often escalated on labor, fuel, and other vendor processing costs. 10. Suppliers of individual commodities to the chemical industry tend to be limited in number and are generally medium- to large-size producers that supply a few major consumers. 11. The bulk of the mineral volume is for basic chemical uses, sulfur suppliers to sulfuric acid producers and fluorspar for hydrofluoric acid producers being typical examples. These basic chemical products then are used for the production of other products. 12. Shortage of a supply of adequate quality leads consumers to seek substitutes. In the case of fluorspar, much work is being done on recovery of fluorine from phosphate rock. Success in the form of fluorosilicic acid and/or hydrofluoric acid production could, in time, affect the hydrofluoric acid chemical industry. 13. Markets tend to be characterized by cycles of shortage followed by oversupply, with attendant wide price fluctuations. 14. Baniers to trade can have an adverse effect on the necessary movement of industrial minerals used by the chemical industry in international trade. Antidumping laws, quotas, and tariffs can disrupt or dislocate normal markets. 15. Chemical industry consumers may back-integrate for security of supply or for favorable economics, sometimes by joint ownership and often with experienced mining partners.

Jan 1, 1994

By Robert Fernie

Demographics and Infrastructure demands have led to a significant increase in construction of: deep basements for buildings and, trough structures for Highway and Rail/Metro. Concrete embedded walls used for temporary works can be incorporated into permanent works and because of this (and geological conditions) tend to be favoured in UK. This paper considers British practice in the provision of diaphragm (slurry) walls secant (true and pseudo) piled walls contiguous piled walls Plant utilisation, construction techniques, reinforcement placement, connections, propping, water tightness, tolerances, general UK practices and their relation to design practices are discussed. [ ]

Jan 1, 2000

By A. Holeyman

The displacement compaction piles described in the paper are installed using a heavy casing or tube and an internal drop hammer. The casing which initially is closed at the bottom by a sand plug displaces the surrounding soil during the driving. Additional sand is rammed down through the casing during the extraction of the casing. The applications and limitations of the method are reviewed in the paper. The importance of checking the sand compaction piles during and after the installation is stressed. Indications of the compaction of the surrounding soil during the driving can be obtained by comparing the initial and the redriving logs of the casing as well as from the volume of sand added. A method to estimate the increase of the mean cone resistance as measured by CPT tests in sandy and silty soils is presented. The governing parameters are the volume of the added sand, the granulometric index and the initial cone resistance.

Jan 1, 2010

By A. F. van Weele

In general cast-in place piles will have an irregular pile shape. However, it is possible that these irregularities are so large that they may lead to pile deficiencies. It is very rarely possible to examine the pile foundations visually. Also the performance of a static or dynamic load test on each individual pile is not practical and much too expensive. This is the reason why pile integrity tests have been developed: to reduce the risk of inadequate pile foundations by performing a simple test. Pile integrity tests are non destructive tests which are carried out after a pile has been installed. Over the years a number of techniques have been developed of which the most important techniques are briefly described in this paper. Of all pile integrity testing methods, Sonic Integrity Testing is the most widely used method in western Europe. This method has been developed by TNO some 15 years ago. Since then the method has been improved, largely due to advances in micro-processing. A major improvement was made by the introduction of digital signal processing techniques. This made the Sonic Integrity Testing method more accurate (smaller defects can be detected), faster (more than 200 piles can be tested on a single working-day) and more reliable (the results are easier to interprete). A few cases will be presented which will show the usefulness of the Sonic Integrity Testing method. In one of these cases, a helpful tool for interpretation of the results is explained: the Sonic Integrity Testing Simulation program TNOWAVE. Notwithstanding the fact that Sonic Integrity Testing is a powerful method, it has also some strict limitations. These will be discussed at the end of the paper.

Jan 1, 1987

By Ian Gordon Hall

El presente texto describe el proceso de recuperación de las partículas ultrafinas de casiterita en los relaves de la mina San Rafael a través de diversas pruebas metalúrgicas, donde se usaron dos tipos de concentradores centrífugos, los cuales indicaron la posibilidad de una recuperación de 50%, produciendo concentrados de 50% Sn. Asímismo, se instala una planta piloto donde se verifica el proceso de las distintas configuraciones y combinación de equipos, como el efecto de las cargas circulantes. Paralelo a ello, se realizan pruebas para aumentar la ley de los concentrados primarios y así obtener concentrados finales a través de concentración gravimétrica.

Sep 12, 2005

By John G. Parker

The rare-earth elements, sometimes known as the lanthanides, comprise the series of 15 chemically similar elements with atomic numbers 57 through 71. Yttrium, with atomic number 39, is often included in the group, because its properties are similar and it more often than not occurs in association with the lanthanides. Thorium is included in this survey due to its close association with the lanthanides, particularly in the mineral monazite. The lanthanides were first recognized as elements around 1750 and were the subject of much study by chemists during the 19th century. The purely chemical methods then available failed to resolve the strange intimate relationships between these elements, and it was not until about 1920 that the full series was explained.

Jan 1, 1971

By J. Maheu

Heap leaching is an old technique for the recovery of copper, but a fairly new technique for the recovery of gold.The paper outlines the equipment required for the establishment of heap leaching test facilities and the procedure required to insure meaningful results. Sampling methods, the metal balance, carbon adsorption and stripping and safety procedures are discussed in broad outline.

Jan 1, 1982

By William P. Jones

THE consumption of sulphuric acid, one of the most important commodities in our modern industrial world, is often used as a barometer for industrial activity. The economics of acid manufacture are largely dependent upon the location of the place of consumption and the availability of raw materials in that locality. Sulphuric acid is made from SO,, oxygen from the air and water. Therefore the sulphur dioxide is the only raw material to be considered in an economic study. SO, can be obtained from almost any material containing inorganic sulphur, such as elemental sulphur, pyrites, coal, sour gas and oil, metallurgical gases, waste gases, or gypsum and anhydrite. Many tons of acid can also be reclaimed by the recovery and concentration of spent acids. The aim of this paper is to present a guide to the economic aspects to be considered when the installation of an acid plant is contemplated. It must be remembered that 1 ton of elemental sulphur produces 3 tons of sulphuric acid and that the shipping of sulphuric acid by tank car is very costly. The size of the plant must also be given careful consideration. For instance, operation of a plant producing 5 tons of acid per day might be warranted in Brazil or Pakistan, whereas economics usually favor buying quantities up to 50 tons per day for use within the United States. Elemental sulphur, when available at the low price of 1M4 per lb delivered at an acid plant, has always been the raw material most frequently used for sulphuric acid. All conditions favor its use at this price. The so-called sulphur shortage has been the subject of so many technical papers, magazine articles, and newspaper items during the past y6ar that it hardly seems necessary to mention it again, but a very brief review of the matter will serve as a foundation for the discussion that follows. There is no shortage of sulphur. Only a shortage of low-cost Frasch-mined brimstone exists today. Other more expensive sulphur-bearing materials are plentiful, both in the United States and abroad. The low cost of Frasch-mined brimstone has discouraged the development of higher cost sources. However, the approaching depletion of Gulf Coast dome deposits and the greatly increased demand for sulphur here and abroad have made it necessary for industry to prepare for conversion to utilize sulphur in other forms. For future planning this situation must be considered permanent and not temporary. This conclusion is based on the fact that although sulphur demand will continue to rise, the production of Frasch-mined sulphur probably will not increase greatly beyond its present level of about 5,000,000 long tons per year. The International Materials Conference in Washington estimates 1952 requirements of the free world at nearly 7 million long tons; and the Defense Production Administration has recently set a new goal for 8,400,000 long tons annual domestic production by 1955. The total sulphur equivalent produced in this country in 1950 was 6 million tons. What, then, are the alternatives for the manufacture of the vital chemical, sulphuric acid? Today about 85 pct of this country's sulphur, and nearly 50 pct of the world supply, comes from our Gulf Coast salt domes and is extracted from the earth by Frasch's hot water process. The Gulf Coast salt dome deposits have been the most important known natural deposits in the world, producing 90 million tons of sulphur during the past 50 years. However, at the present rate of extraction these deposits cannot be expected to last indefinitely. Pyrites Pyrites are, and have been for many years, the source of more than 50 pct of the world's sulphur requirements. The principal use, of course, is in the manufacture of sulphuric acid. The use of pyrites in the United States has diminished greatly because of the availability of low cost native sulphur, but pyrites have continued a major source of sulphur in many other countries. The most available pyrites for use in this country are in the form of lump pyritic ore and in mill tailings from flotation of other minerals such as lead, zinc, copper, gold, and silver. An important factor, when the use of pyrites for acid manufacture is being considered, is the disposal of calcine. A ton of sulphuric acid requires approximately ton of high-grade pyrite and results in 1/2 ton of calcine. If the calcine is a fairly pure oxide, free of harmful impurities, it can be used, after sintering, in an iron blast furnace burden. Its value might be as high as 15d per unit of Fe at the blast furnace; or possibly $10.00 per ton of sinter, if it assays 65 pct Fe. This might result in a credit of $4.00 per ton of acid if the sintering plant and blast furnace are both located adjacent to the acid plant. On the other hand, several factors must be considered before this credit can be realized, i.e., freight to blast furnace, availability of sintering facilities, methods of eliminating impurities, and the removal of valuable metal values. In some locations it would be most economical to dump the calcines.

Jan 1, 1953

By William P. Jones

THE consumption of sulphuric acid, one of the most important commodities in our modern industrial world, is often used as a barometer for industrial activity. The economics of acid manufacture are largely dependent upon the location of the place of consumption and the availability of raw materials in that locality. Sulphuric acid is made from SO2 oxygen from the air and water. Therefore the sulphur dioxide is the only raw material to be considered in an economic study. SO2 can be obtained from almost any material containing inorganic sulphur, such as elemental sulphur, pyrites, coal, sour gas and oil, metallurgical gases, waste gases, or gypsum and anhydrite. Many tons of acid can also be reclaimed by the recovery and concentration of spent acids. The aim of this paper is to present a guide to the economic aspects to be considered when the installation of an acid plant is contemplated. It must be remembered that 1 ton of elemental sulphur produces 3 tons of sulphuric acid and that the shipping of sulphuric acid by tank car is very costly. The size of the plant must also be given careful consideration. For instance, operation of a plant producing 5 tons of acid per day might be warranted in Brazil or Pakistan, whereas economics usually favor buying quantities up to 50 tons per day for use within the United States. Elemental sulphur, when available at the low price of 1 ½ ¢ per lb delivered at an acid plant, has always been the raw material most frequently used for sulphuric acid. All conditions favor its use at this price. The so-called sulphur shortage has been the subject of so many technical papers, magazine articles, and newspaper items during the past year that it hardly seems necessary to mention it again, but a very brief review of the matter will serve as a foundation for the discussion that follows. There is no shortage of sulphur. Only a shortage of low-cost Frasch-mined brimstone exists today. Other more expensive sulphur-bearing materials are plentiful, both in the United States and abroad. The low cost of Frasch-mined brimstone has discouraged the development of higher cost sources. However, the approaching depletion of Gulf Coast dome deposits and the greatly increased demand for sulphur here and abroad have made it necessary for industry to prepare for conversion to utilize sulphur in other forms. For future planning this situation must be considered permanent and not temporary. This conclusion is based on the fact that although sulphur demand will continue to rise, the production of Frasch-mined sulphur probably will not increase greatly beyond its present level of about 5,000,000 long tons per year. The International Materials Conference in Washington estimates 1952 requirements of the free world at nearly 7 ½ million long tons; and the Defense Production Administration has recently set a new goal for 8,400,000 long tons annual domestic production by 1955. The total sulphur equivalent produced in this country in 1950 was 6 million tons. What, then, are the alternatives for the manufacture of the vital chemical, sulphuric acid? Today about 85 pct of this country's sulphur, and nearly 50 pct of the world supply, comes from our Gulf Coast salt domes and is extracted from the earth by Frasch's hot water process. The Gulf Coast salt dome deposits have been the most important known natural deposits in the world, producing 90 million tons of sulphur during the past 50 years. However, at the present rate of extraction these deposits cannot be expected to last indefinitely. Pyrites Pyrites are, and have been for many years, the source of more than 50 pct of the world's sulphur requirements. The principal use, of course, is in the manufacture of sulphuric acid. The use of pyrites in the United States has diminished greatly because of the availability of low cost native sulphur, but pyrites have continued a major source of sulphur in many other countries. The most available pyrites for use in this country are in the form of lump pyritic ore and in mill tailings from flotation of other minerals such as lead, zinc, copper, gold, and silver. An important factor, when the use of pyrites for acid manufacture is being considered, is the disposal of calcine. A ton of sulphuric acid requires approximately ¾ ton of high-grade pyrite and results in ½ ton of calcine. If the calcine is a fairly pure oxide, free of harmful impurities, it can be used, after sintering, in an iron blast furnace burden. Its value might be as high as 15¢ per unit of Fe at the blast furnace; or possibly $10.00 per ton of sinter, if it assays 65 pct Fe. This might result in a credit of $4.00 per ton of acid if the sintering plant and blast furnace are both located adjacent to the acid plant. On the other hand, several factors must be considered before this credit can be realized, i.e., freight to blast furnace, availability of sintering facilities, methods of eliminating impurities, and the removal of valuable metal values. In some locations it would be most economical to dump the calcines.

Jan 1, 1952

By William P. Jones

THE consumption of sulphuric acid, one of the most important commodities in our modern industrial world, is often used as a barometer for industrial activity. The economics of acid manufacture are largely dependent upon the location of the place of consumption and the availability of raw materials in that locality. Sulphuric acid is made from SO,, oxygen from the air and water. Therefore the sulphur dioxide is the only raw material to be considered in an economic study. SO, can be obtained from almost any material containing inorganic sulphur, such as elemental sulphur, pyrites, coal, sour gas and oil, metallurgical gases, waste gases, or gypsum and anhydrite. Many tons of acid can also be reclaimed by the recovery and concentration of spent acids. The aim of this paper is to present a guide to the economic aspects to be considered when the installation of an acid plant is contemplated. It must be remembered that 1 ton of elemental sulphur produces 3 tons of sulphuric acid and that the shipping of sulphuric acid by tank car is very costly. The size of the plant must also be given careful consideration. For instance, operation of a plant producing 5 tons of acid per day might be warranted in Brazil or Pakistan, whereas economics usually favor buying quantities up to 50 tons per day for use within the United States. Elemental sulphur, when available at the low price of 1M4 per lb delivered at an acid plant, has always been the raw material most frequently used for sulphuric acid. All conditions favor its use at this price. The so-called sulphur shortage has been the subject of so many technical papers, magazine articles, and newspaper items during the past y6ar that it hardly seems necessary to mention it again, but a very brief review of the matter will serve as a foundation for the discussion that follows. There is no shortage of sulphur. Only a shortage of low-cost Frasch-mined brimstone exists today. Other more expensive sulphur-bearing materials are plentiful, both in the United States and abroad. The low cost of Frasch-mined brimstone has discouraged the development of higher cost sources. However, the approaching depletion of Gulf Coast dome deposits and the greatly increased demand for sulphur here and abroad have made it necessary for industry to prepare for conversion to utilize sulphur in other forms. For future planning this situation must be considered permanent and not temporary. This conclusion is based on the fact that although sulphur demand will continue to rise, the production of Frasch-mined sulphur probably will not increase greatly beyond its present level of about 5,000,000 long tons per year. The International Materials Conference in Washington estimates 1952 requirements of the free world at nearly 7 million long tons; and the Defense Production Administration has recently set a new goal for 8,400,000 long tons annual domestic production by 1955. The total sulphur equivalent produced in this country in 1950 was 6 million tons. What, then, are the alternatives for the manufacture of the vital chemical, sulphuric acid? Today about 85 pct of this country's sulphur, and nearly 50 pct of the world supply, comes from our Gulf Coast salt domes and is extracted from the earth by Frasch's hot water process. The Gulf Coast salt dome deposits have been the most important known natural deposits in the world, producing 90 million tons of sulphur during the past 50 years. However, at the present rate of extraction these deposits cannot be expected to last indefinitely. Pyrites Pyrites are, and have been for many years, the source of more than 50 pct of the world's sulphur requirements. The principal use, of course, is in the manufacture of sulphuric acid. The use of pyrites in the United States has diminished greatly because of the availability of low cost native sulphur, but pyrites have continued a major source of sulphur in many other countries. The most available pyrites for use in this country are in the form of lump pyritic ore and in mill tailings from flotation of other minerals such as lead, zinc, copper, gold, and silver. An important factor, when the use of pyrites for acid manufacture is being considered, is the disposal of calcine. A ton of sulphuric acid requires approximately ton of high-grade pyrite and results in 1/2 ton of calcine. If the calcine is a fairly pure oxide, free of harmful impurities, it can be used, after sintering, in an iron blast furnace burden. Its value might be as high as 15d per unit of Fe at the blast furnace; or possibly $10.00 per ton of sinter, if it assays 65 pct Fe. This might result in a credit of $4.00 per ton of acid if the sintering plant and blast furnace are both located adjacent to the acid plant. On the other hand, several factors must be considered before this credit can be realized, i.e., freight to blast furnace, availability of sintering facilities, methods of eliminating impurities, and the removal of valuable metal values. In some locations it would be most economical to dump the calcines.

Jan 1, 1953

By Kenneth A. Grace

Introduction The 1980s have not been kind to the mining industry, especially in the United States. As mineral commodities prices plunged, marginal producers were squeezed out and then major players were forced to cut back or close down operations. Base metal miners suffered the most. Gold was all that glittered. As had been the case throughout min¬ing's history, exploration activity was an early victim of these depressed conditions. Mining companies had to economize drasti¬cally and exploration was deemed a nones¬sential activity. Funding for new explora¬tion ventures dried up as mining was seen as a poor investment. A national magazine even proclaimed the death of the industry. Indeed, ignoring matters of independ¬ence of supply and the relationship of min¬eral production to national security, it was argued that mining was but a small cog in the overall scheme of things in the United States. The industry made a relatively small contri¬bution to the gross national output. We were becoming a service industry economy, re¬member? But what of those countries where mining plays a major role in the economic well-being? In some, mining is the national economy. In a few specific cases, special conditions actually brought prosperity. Copper production in Chile is one example. There, high grade copper, low production costs, and a technically advanced industry reaped the benefits of mine closures else¬where. In most other cases, however, par¬ticularly in the lesser developed countries, whole economies were devastated. This article will show what one major mineral producer, Canada, did to ensure the survival and even growth of its minerals exploration activity during these lean years. Background While Canada is among the world's mining leaders, mining is not its dominant industry. Still, it plays a far more important role than in the United States. It is a major earner of foreign exchange, currently accounting for about 25% of the total value of exports. Through spinoffs and a multiplying effect, it is a significant employer. In the far north, particularly, mining is the major nongovernment industry and a leading factor in the opening up of frontier territory. The industry cannot be allowed to die because it is often the main economic underpinning for vast, remote areas. Thus, exploration for new deposits cannot be cur¬tailed significantly without it having a long¬term negative impact on the very fabric that melds such a large, sparsely-populated ex¬panse of country into a nation. Over the years, Canadian governments have employed various means to encourage the development of new mines. Often, these incentives were tax-oriented, such as the three-year income tax holiday that applied to new mines in the 1950s and 1960s. The advantage of the tax connection is that any such incentive policy can be applied across the board to the 10 provinces and two territories that make up the federation of Canada. This is important because mining, except for the two federally-administered northern territories, comes under provincial government jurisdiction. Mining taxation is a complex give-and-take between the central and provincial authorities. In Canada, expenditure on mineral exploration is an allowable cost against reve¬nue for tax purposes. This works well pro¬vided there is some revenue from which to deduct. New exploration companies, those with no income from mining activities, de¬rive little benefit from this type of tax provi¬sion. Similarly, in times of depressed prices and reduced or nonexistent profits, the tax deductibility of exploration spending loses its value even for the major mining compa¬nies. To encourage exploration in Canada during the lean years, a different sort of incentive was required. The instrument used during the 1980s was again tax connected. It became known as flow-through financing or, simply, flow-through shares. When it assumed its final shape, it worked dramati¬cally. Flow-through shares Flow-through shares are so-named because they permit tax benefits earned by a corporation to 'flow-through' to the share¬holder. Basically, when an investor buys a flow-through share and the proceeds de¬rived by the company from this transaction are used for Canadian exploration, the in¬vestor can claim a deduction for tax pur¬poses as if the exploration expenditure was made by him personally. Flow-through shares go back to the early 1970s when Canada revamped its mineral income tax law. At that time, it permitted full deduction of exploration and development expenditures and provided for an automatic depletion allowance of one¬ third of operating profits from mining. There was also the three-year income tax holiday for new mines. New legislation replaced the depletion allowance with an earned depletion arrange¬ment whereby one dollar of depletion was earned for every three dollars spent on ex¬ploration and development. This earned depletion was `banked' during a transitional period (to 1974). After that it could be deducted from resource profits up to a maximum of 25% of such profits in any one year, with the excess carried forward. To promote exploration and mine de¬velopment in Canada, the earned depletion allowance plus the continued deductibility of exploration and development expendi¬tures permitted the recovery of risk capital before taxation. The three-year tax holiday, however, disappeared. Also, mining com¬panies that did not reinvest in exploration lost the depletion allowance benefit.

Jan 1, 1989

By George F. Learning

TOTAL DIRECT IMPACT The uranium mining industry's principal economic impacts on the Texas economy are the result of three flows of money from the industry into the remainder of the state's economy. These three are: (1) money paid to individuals (personal income) ; (2) money paid to other businesses (business income); and (3) money paid to state and local governments (government revenues). As these direct payments from the uranium industry to various other sectors of the Texas economy subsequently circulate and recirculate within the state, the indirect effects of uranium mining's direct impacts multiply to reach amounts significantly higher than the direct income flows alone. Over the past decade, the uranium mining industry has substantially increased its role as a provider of jobs, personal income, business income, and government revenues in Texas. The growth has come almost exclusively in a largely rural, seven-county area that lies within the triangle formed by the Laredo, San Antonio, and Corpus Christi metropolitan areas. The uranium mining industry, in fact, has been the major dynamic element in this rural area despite relative stagnation in most of the region's other basic economic sectors. Over the three years from 1976 to 1978, the South Texas uranium mining industry directly contributed a total of $115 million to the economy of the seven- county region in which it operated and $164 million to the economy of the entire state of Texas. In 1979 alone, the total direct contribution of the industry to the Texas economy had climbed to $124 million in personal, business, and government income. PERSONAL INCOME IMPACT In the period from 1976 through 1978, the South Texas uranium mining industry provided an average of $12.5 million in personal income each year directly to residents of Atascosa, Bee, Duval , Karnes, Live Oak, McMullen, and Webb counties -- the seven Texas' counties that make up the South Texas Uranium Belt. A1 though 84 percent of this resulted from the employment of area residents in uranium industry jobs, some amounts were also provided by the payment of rents and royalties to land owners for the use of their land and mineral rights in uranium mining operations. In 1979, the uranium industry provided approximately $38 million to residents of the Uranium Belt and the rest of Texas. This was more than double the average of $16.1 million provided to Texas residents during the 1976 to 1978 period. The full importance of the uranium industry as a source of personal income, however, should not be reckoned merely by the amount of wages and salaries that it pays directly to its own employees, nor by its rent and royalty payments paid directly to land and mineral rights owners living in Texas. The added payments that the industry makes directly to other Texas businesses and state and local governments in Texas are themselves converted into personal income as those business firms and government units in turn pay their employees. All of the direct income payments made by the uranium industry circulate and recirculate within the state's economy, multiplying their impact as they go, until they eventually all leak out of the state as federal taxes or as payments to individuals or businesses located outside of Texas. The combined circulation and recirculation of the direct personal, business, and government income that was provided by the-uranium industry in Texas during 1976, 1977, and 1978 resulted in an average annual amount of indirect personal income of more than $83 mill ion. This alone was $20 mill ion more than the industry's average annual sales during the same years. The total of combined direct and indirect personal income contributed to the Texas economy by the uranium mining industry in that same three-year period thus averaged almost $100 million annually. In 1979, the amount of indirect personal income contributed to the Texas economy by the circulation of uranium mining's direct contributions had risen to about $196 million, more than double the average of the previous three years. The combined direct and in- direct personal income impact in 1979 thus amounted to $234 million. BUSINESS INCOME IMPACT The income provided directly to other Texas business firms through the purchase of needed goods and services by the uranium industry has been twice as big as the industry's payrolls. In 1976, 1977, and 1978, the South Texas uranium industry spent an average of almost $36 million each year to buy both goods and services from other Texas businesses. By 1979, this direct contribution to the Texas economy had swollen to $76 million. The biggest share of the uranium industry's payments to other businesses have gone to contracting firms, including both construction firms and those providing specialized mining services. In the past four years, about 40 percent of the direct payments made by Texas uranium producers to other Texas firms have been to contractors. Texas wholesale and retail firms have also shared in the business sales provided by the South Texas uranium mining industry. Over the past four years, Texas wholesale and retail trade businesses have accounted for about 34 percent of the uranium mining industry's purchases from other Texas businesses. Public utilities firms have received another six per- cent, while Texas manufacturers and transportation firms have accounted for about five percent each. The other sectors of the state's economy, including other mineral industries, agriculture, finance, insurance, real estate, and services, have accounted

Jan 1, 1980