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COUNCIL FOR 1988/89 President C.E. Fivaz President-elect Dr O.K.H. Steffen Senior H.G. Mosenthal Vice Presidents Junior R.D. Beck Immediate Past President B.C. Alberts Honorary Treasurer Dr H. Wagner

Jan 1, 1989

COUNCIL FOR 1990/91 President H.G. Mosenthal President Elect RD. Beck Senior J.P. Hoffman Vice Presidents Junior Or H. Scott-Russell Immediate Past President Or O.K.H. Steffen Honorary Treasurer OrH. Wagner

Jan 1, 1991

The Council of the Institution of Mining and Metallurgy submitted the report of the affairs of the Institution for the session 1970-71, and the Statement of Accounts for the year ended 31 December, 1970. The statistics given in the report refer to the calendar year 1970. Details are included of membership, officers, representation on other bodies, honours and distinctions, awards, meetings, publications, library, overseas activities, fellowships and grants, the revenue and expenditure account, the balance sheet, trust fund balances, contributing companies, and schedule of investments

Dec 1, 1971

ANNUAL meeting of the Woman's Auxiliary of the American Institute of Mining and Metal-lurgical Engineers convened on Tuesday morn-ing, Feb. 20, the president, Mrs. H. W. Hardinge, presiding. President Hardinge, in opening the meet-ing, said: "I have the honor and great pleasure to welcome you to our seventh annual meeting. It has been a happy year, though I started in fear and trembling. My fear is partly gone and my trembling becomes less as time goes on. Never has a chairman had such splendid cooperation and harmony in her work; no. matter how much was asked nor what the task, I have always received the same answer, `We are with you, of course we can do it.' Often the road has been untried and the way full of snares, but we have all pulled together. Is it any wonder we have had a prosperous year? I cannot thank the governing -board and officers enough for their help." Mrs. Hardinge described her trip through the West last summer, during which she visited many of the local sections of the Auxiliary. She also spoke of the work of the Rossiter Raymond memorial library which has been started as an activity of the Woman's Auxiliary. Mrs. Reynders read the minutes of the last annual meeting, and Mrs. Kemp read the treasurer's report. The latter showed that on Feb. 1, 1922, there was a bank balance of $683.61 and on Feb. 10, 1923, the bal-ance was $947.93. Mrs. Westervelt expressed the sorrow of the Auxiliary for the death -of Mrs. Florence Howe Hall and of Mrs. Levi P. Holbrook.

Jan 4, 1923

By E. D. Attanasi, J. H. DeYoung

Although fraught with problems of completeness and comparability, statistical measures of mineral exploration in the United States point downward for 1985 and 1986. Exploration expenditures in the US domestic and Canadian companies have dropped steadily from a 1981 peak of about $400 million to about $190 million in 1985, according to a recent survey of exploration statistics by the Society of Economic Geologists (SEG). These totals have been adjusted to account for differences in the estimated coverage of exploration activity by each year's SEG survey. This survey is now supported by the US Bureau of Mines and the US Geological Survey (USGS). The drop in current dollar amounts does not take into account the effects of inflation, which would make the decline even more substantial. Metals Economics Group of Boulder, CO reported in its Mine Development Bimonthly that announced exploration budgets for 1986 indicated an even larger drop for the past year. Worldwide expenditures for companies covered by the report dropped from about $800 million to $750 million from 1984 to 1985 and plummeted to about $600 million in 1986. Exploration activity has been declining since about 1981. This has been due in large part to low prices for base and ferrous metals. Exploration budgets of mining subsidiaries of oil companies have plunged as parent companies try to conserve cash in the face of the sharpest decline in oil prices in nearly 40 years. Mining subsidiaries of petroleum firms that were either liquidated or divested recently include Anaconda (Arco), Getty Mining (Texaco), and Cyprus Minerals (Amoco). Exploration expenditures in Canada increased in 1984 in regions where gold is a traditional target. But there was little change in 1985, based on preliminary statistics from a federal government report (Energy, Mines and Resources Mineral Bulletin MR 211, 1986). Claim staking in Canada dropped 23% from 1983 to 1984 and declined slightly in 1985. Diamond drilling increased in 1984 to the record levels of 1980 and 1981. The ratio of exploration to development expenditures in Canada, however, fell from a 1981 peak of 0.9 to about 0.5 in 1984. The report also indicated that, since 1981, there has been a massive write-off of reserves with high production costs. Reserve levels of all major metals were down since 1981. Precious metals exploration accounts for an increasing share of total mineral exploration. For example, the SEG data show that 90% of 1985 US exploration expenses by domestic mining companies were devoted to base and precious metals, compared with only 51% in 1980. The restructuring of the mining industry has been accompanied by a decrease in response to the last two SEG annual surveys, but the trend towards precious metals was already established in earlier years. Trade journal reports suggest that the reduction of long-term interest rates has encouraged the mining industry to make cost-reducing capital investments in existing mines to maintain competitiveness. This is consistent with the observations that metals explorations in 1986 was characterized not by announcements of "grassroots" discoveries, but by on-property exploration on identified mines or prospects. In an effort to cut costs, gold mining companies have been following up on low cost production opportunities in their prospect inventories. Short-term, low risk, heap leach operations that can produce rapid returns on investment have been pursued. Specific exploration projects are covered in the individual state sections of this Annual Review. Even though economic growth continued steadily through 1986, the domestic mining industry has

Jan 5, 1987

By M. D. Cooper

Production of both anthracite and bituminous coal in 1954 was about 16 pct below 1953. Estimates on Dec. 1, 1954, indicated 27 million tons of anthracite and 385 million tons of bituminous. Decline in production was due principally to lower demand by the steel industry and the railroads, although competition from other fuels also affected coal. The year was notable for vigorous effort by the coal industry to promote the use of its product. A Cabinet Committee on Energy Supplies and Resources Policy and an Interdepartmental Committee on the Soft Coal Industry were set up by the Administration in Washington. A Governors' Fuel Conference was also organized.

Jan 3, 1955

By John F. Barkley, J. W. Woomer, H. F. Yancey, H. B. Charmbury

The coal picture in 1955 was much brighter than in 1954, when the tonnage produced dropped to the 1939 level. Bituminous coal and lignite production are expected to approach 465 million tons, against 392 million tons in 1954, an increase of about 19 pct. On the other hand, the production of anthracite declined about 7 pct to some 25 million tons. There was marked improvement in coal consumption in all industrial lines except railroads. At the end of November 1955 the largest consumer, electric power utilities, had used about 126 million tons, an increase of some 22 million tons over the previous year. Coke-oven consumption increased about 19 million tons and coal coked in beehive ovens increased about 1.5 million tons, due to heavy coke

Feb 1, 1956

By Robert C. Stephenson

In 1954, a year when general industrial production declined, it is significant that industrial mineral products continued in high demand. Phenomenal growth of the cement industry, increase in filler-fibre markets such as for asbestos and diatomite, expansion of the gypsum industry, and the increasing production of agricultural raw materials all illustrate the vitality of industrial minerals fields. Pioneer development of new industrial raw materials-wollastonite as a current example-requires keen foresight, hard work, and tremendous intestinal fortitude. The present-day requirements of industry for rigid quality control and uniformity of raw materials have resulted in highly specialized

Jan 3, 1955

By Hugh Steele, Brower Dellinger

U. S. mining trends for 1956 continued steadily U+ S. uphill, technique and equipment advanced with the pull, and exploration and development of once mined districts attracted more attention than new areas. Expansion of the Ambrosia Lake district in New Mexico more than doubled known uranium ore reserves, and production began from several of the large new ore discoveries. In Canada the up trend was more spectacular, especially in exploration and development. To combat increasing problems arising from high labor costs, taxes, low grade orebodies, and dwindling discoveries, manufacturers and mining companies have continued to introduce new techniques and new products-reamer bits for enlarging small holes drilled by jacklegs, whup d'whups for drift mucking, Cryderman machines and over-the-head small crawler-type machines for shaft mucking, the 20-ton TL 220 four-wheeled tractor trailer unit for underground haulage, inertia-type dust collectors, roof bolting in conjunction with chain link fencing for wall support, wooden roof bolting using compression support of ground for wall support, and new one-use carbide bits.

Jan 2, 1957

By E. D. Attanasi, M. W. Bultman

Most statistical measures of mineral exploration continued downward in 1986. Prospects in 1987, however, appear to have brightened for exploration as the overall economic health of the mineral industry improved. The Society of Economic Geologists (SEG) survey of US and Canadian firms documents the marked decline in US mineral exploration since the early 1980's. From 1981 through 1986, the total exploration expenditure by US firms declined by more than 73% (Fig. 1). Exploration expenditures by US firms declined by 66%%. US based professional exploration staffs were slashed by 70% (Fig. 2). Also, many firms have written off some reserves because of weak markets or have not delineated new reserves to replace production. The Canadian government reported that between 1981 and 1986 Canadian molybdenum re¬serves had declined by 30%, lead and zinc reserves by 20%, and nickel and copper reserves by 15%. The SEG survey also shows the immediate impact of the decline in the dollar on US exploration expenditures abroad. Between 1981 and 1986 the share of the exploration dollar spent by US firms outside of the country declined by nearly one-half and exploration acreage abroad declined by 69%. The downward trend of the last six years may finally be near the end as a leaner and more efficient minerals industry starts to gear up for a period of increased activity. An industry survey reported to Mine Development Bimonthly (Metals Economics Group) indicates that mining firms were expected to increase exploration expenditures in 1987 by at least 10% above 1986 levels. Worldwide expenditures for 1987 by companies covered by the report were expected to top $800 million. It is the first time since 1984 that an increase in exploration expenditures was expected. Also, the US Bureau of Land Management reported a 30% increase in new mining claims for fiscal year 1987 over fiscal year 1986. The bulk of the increase in claims was in states having intense gold exploration, particularly Washington and Oregon. Much of the optimism is undoubtedly due to the increases in metal prices that occurred in 1987. Some of these increases include gold, average price up about 20%; copper, average price up 24%; aluminum, average price up 26%; and nickel, average spot price up 20%. The SEG survey shows precious and base metals accounting for 89% of the exploration expenditures in the US in 1986, up 52% from 1981. The US Bureau of Mines estimates that 80% of US exploration activity in 1986 was directed entirely at gold (1986 Minerals Yearbook). Worldwide exploration plans indicate the continued dominance of gold exploration. New programs were announced for Ghana, Malaysia, and Indonesia. Major new exploration programs were also launched for lead-zinc sulfides in Morocco, platinum and palladium in northwest Brazil, rare earth minerals in Greenland, diamonds in Indonesia, and heavy minerals off-shore Australia. Significant gold discoveries were made at Angels Camp in Oregon; South Africa, near Potchestroom; India, in the Chitradgra district; Northern Ireland near Mt. Speerin; Chile, San Cris-

Jan 5, 1988

By E. D. Attanasi, M. W. Bultman, J. H. DeYoung

The 1987 recovery in the US mining industry permitted modest increases in exploration expenditures that year (Fig. 1). Favorable market conditions apparently allowed the gains to be sus¬tained in 1988. There was great uncer¬tainty early in the year as to whether world and US economic growth would be a casualty of the October 1987 worldwide stock market crash. By nearly all measures, the performance of the US minerals industry was strong¬. A weak US dollar and the strong growth of worldwide capital spending resulted in in¬creased US exports of con¬sumer and producer durable items as well as strong domes¬tic demand for metals. In fact, 1988 US steel industry exports reached levels not attained since the mid-1970s. It was re¬ported that steel industry labor productivity is now roughly twice the 1981 level. Among metals with signifi¬cant average nominal price increases in 1988 over 1987 levels were copper (43%), alu¬minum (52%0), and zinc (44%). Even though domestic copper production has grown since 1984 by 30% in mining and 24% in refining, em¬ployment in mining and milling is 4% below the 1984 level. Domestic unit costs are reported in the range of $1.10 to $1.33/kg (50 to 60 cents per lb). The US base metals industry is proba¬bly in its best cash position in many years. However, there has not been a large increase in exploration expendi¬tures. This is due mostly to the percep¬tion that worldwide capacity can easily be increased. Industry reports do show that "low cost" copper producers have been buying reserves from weaker com¬panies. The 1987 Society of Economic Ge¬ologists (SEG) survey of exploration activity indicated that 95 cents out of every exploration dollar spent by US and Canadian firms was for base and precious metals (Economic Geology, January 1989). Press reports, though, make it clear that most of that spending was targeted for precious metals. US claim staking data (Fig. 2) rein¬forces this suspicion. The apparent lag in new claim filings in Alaska and phe¬nomenal growth in filings in the lower 48 states suggests that exploration is directed at relatively low risk targets. In the conterminous 48, more than 40% of the new claims were made in Nevada, indicating an emphasis on gold (although even Nevada had some base metals exploration). Even with a price decline during 1988, the difference between the gold price and average global "cash" production cost of $7.30/g ($227 per oz) still leaves room for an attractive return (Northern Miner, 1988). Exploration plans and results Metals Economics Group (Halifax) indicated in its 1988 exploration survey that exploration expenditures by US and South African firms would be at about 1987 levels. It also reported that Canadian and Australian firms were ex¬pected to reduce their exploration spend¬ing significantly. Firms in both coun¬tries were caught in changes in tax laws. In Canada, the Mining Ex¬ploration Depletion Allow¬ance (MEDA) once permitted generous tax write-offs to in¬dividuals investing in miner¬als exploration. It was to be replaced in January 1989 with the Canadian Exploration In¬centives Program (CEIP). Although structured and ad¬ministered differently than MEDA, CEIP can provide an equivalent or possibly greater financial incentive for min¬eral exploration, for junior mining companies. In 1987, it is estimated that junior com¬panies accounted for two¬-thirds of the off-property (or grass roots) exploration ex¬penditures in Canada. Australia will revoke the tax exemption for gold in 1990. Australian operators, therfore, were expected to concentrate efforts on speeding up pro¬duction during 1988 and 1989. In 1988, Chile and Mali announced special efforts to attract gold explora¬tion by foreign companies. The Cana¬dian government continues to express concern about the write-off (and drawdown) of base metal reserves. Falconbridge did announce a new initiative to identify additional base metal reserves in the Sudbury district. Discoveries Gold deposits dominated discoveries

Jan 1, 1989

By E. D. Attanasi

The US mining industry finished the traumatic 1980s with a strong economic performance. Worldwide economic growth and capital spending led to tight metal markets. So, 1989 metals prices were generally higher than average 1988 prices. Financial markets' volatility resulted from US junk bond defaults, heavy US savings and loan losses and effects on the US budget deficit, higher energy prices, and the seemingly intractable problems of some debtor countries. Moreover, the events in Eastern Europe promise fundamental changes in the world economic system for the 1990s. US mining companies that survived the decade had weathered economic changes that, at one point, reduced industry employment by 40%, drove oil companies to divest or liquidate recently acquired mineral subsidiaries, and led to substantial write-offs of reserves. Canadian and other international minerals firms experienced similar industry upheavels. The forced modernization and capacity rationalization produced an internationally competitive US industry. For example, even though 1989 US copper production was 27% greater than in 1980, industry employment was less than half the 1980 level. The steel industry and other minerals industries showed similar productivity improvements.

Jan 1, 1990

By E. D. Attanasi

Exploration for non-fuel minerals has declined since 1988 as recessionary pressures have slowed growth in the industrialized economies. By most accounts, however, 1990 expenditures were still significantly greater than the low levels experienced in the mid-1980s. The Persian Gulf crisis introduced instability in energy prices and greater uncertainty into an already cloudy economic picture. As 1990 unfolded, the US savings and loan problems spread to the commercial banking system, leading to the failure of several major US commercial banks. The Japanese stock market also suffered significant losses as Japan's Central Bank raised interest rates. The Soviet Union experienced shortages of food and other basic items. Its government faces resistance to changes leading to a market economy. Individual Soviet republics also are seeking more control of their own destiny. The cost of German reunification, in terms of the capital required to bring the east's infrastructure and industrial base to western standards, also appears to have been underestimated.

Jan 1, 1991

In 1991, most industrialized countries, except for Germany, were in a recession or a period of reduced growth. The US economy, already in recession, suffered from mounting banking system losses and the uncertainty brought about by the Persian Gulf War. However, US and worldwide minerals exploration did not collapse as it did during the mid-1980s. Even though gold and base metal prices declined, prices were still above cash costs for most operations. This allowed the continuation of established exploration programs but sharply limited new initiatives. Exploration 1990-1991 Planned worldwide 1991 exploration expenditures declined by about 8% from 1990 levels, according to a survey of 153 companies by the Metals Economic Group (MEG). Canada was the leading exploration target with 23% of the total, followed by Australia and the US (19% each), South Africa (13%), Latin America (11%) and the South Pacific (7%). The remaining 8% was split evenly between Europe and the rest of Africa. In Latin America, Mexico and Chile are the most attractive countries for exploration. Recognizing the risks involved, the industry has been cautious about ventures in the former Soviet Union. Survey results also showed that while the majors expected to maintain exploration spending, smaller firms were cutting back or actively seeking farm-outs from the majors (personal communication, M. Wegener, MEG).

Jan 1, 1992

Worldwide minerals exploration slipped in 1992 from 1991 levels. Although industrial production figures showed the US economy emerging from recession in early 1992, it was not until February 1993 that the lagging indicator of unemployment dropped to 7%. Most other industrialized countries are still in recession. Preliminary data for 1992 showed industrial production dropping in Japan (5%), Germany (1.4%), the United Kingdom (0.5%) and France (1.4%). The slowdown in industrial production led to reduced mineral demand. This resulted in lean cash flows from mining operations, which squeezed exploration funding. Although mineral prices were steady during most of 1992, some mineral commodity prices began falling in late 1992 and early this year. Exploration 1991-1992 According to Metals Economics Group (MEG), planned 1992 exploration expenditures were down by about 5%. Geographically, the leading exploration target was the United States with 21 % of the expenditures, followed by Australia (19%), Canada (18%), Latin America (15%), South Africa (9%) and the western Pacific (7.5%). The remaining 10% was split between Europe and Africa. There were absolute increases in exploration expenditures in the United States and Latin America. Latin America showed the largest increase. The change in the Mexican mining law allowing foreign ownership of mines should result in the inflow of direct foreign investment in Mexico's mining industry.

Jan 1, 1993

During 1993, contraction of indus¬trial economies in Germany (-2%), France (-1 %), Japan (-0.1 %), Eastern Europe (-2%) and the former Soviet Union (-13%) dimmed prospects of a robust economic recovery for North America. Some European countries that suffer from high unemployment and large government deficits have non-com¬petitive cost structures that will require long-term economic reforms to solve. Restructuring in the United States also continued in 1993. The sluggish pace of the US economic recovery, in¬troduction of federal tax increases and the persistence of high levels of unemployment did little to inspire consumer confidence. By the end of the year, however, sales of consumer durable and capital equipment began to grow. Depressed demand for minerals by industrial economies in recession was partially offset by continuing rational¬ization or abandonment of non-competi¬tive productive capacity in Eastern Eu¬rope and the former Soviet Union. Al¬though aluminum, lead, titanium sponge and zinc prices fell, increases in copper and steel consumption helped steady their prices along with prices of some alloys. Cash flow to the mining industry - the primary source of exploration funds - was therefore constrained. For many companies, exploration expendi¬tures were reallocated geographically and in terms of commodities sought.

Jan 1, 1994

The US economy grew at a rate of 4% in 1994 and the gross domestic product rose to $6.74 trillion. With 261 million people - 605,000 in mining, including petroleum -the United States has l 10 million dwelling units and 200 million licensed motor vehicles. New private housing units authorized in 1994 rose 14% to 1.4 million units. New car production rose 11 % to 6.6 million units, while truck and bus production rose 30% to 5.2 million units. The inflation rate was less than 3% and the prime rate of interest averaged 7.15%. The producer price index (1982 = 100) for fuels and related products and power was down 4% to 78, while metals and metal products rose 5% to 125. Chemicals and allied products rose 3% to 132, and non-metallic mineral products rose 3% to 124. The merchandise trade deficit rose 25% to $166 billion. Disorder in the former Soviet Union led to substantial dumping of mineral materials. With vast mineral resources, the former Soviet Union land area totaled 22.4 million km2 (8.6 million sq miles). In comparison, the North Ameri¬can Free Trade Agreement (NAFTA) area (United States, Canada and Mexico) totals 21.4 million km2 (8.3 million sq miles).

Jan 1, 1995

By D. Washington

The US economy and the demand for nonfuel minerals grew at lower rates in 1995 than in 1994. Demand for major metals, such as aluminum, copper and steel, was mixed but relatively stable. The building industry, including highway construction, helped to support modest overall growth in demand for industrial minerals. The value of processed materials of nonfuel mineral origin produced in the United States during 1995 was estimated to be $395 billion, an increase of almost 10%compared with 1994 (Fig. 1). The estimated value of US raw nonfuel minerals production during 1995 was $38billion, about 7% more than in 1994. The value of US minerals production has increased in 30 of the last 35years.

Jan 1, 1996

By R. F. Balazik

By March 2001, shrinking global markets, reduced consumer spending and declines in domestic manufacturing and industrial output ended the longest economic expansion in US history and pushed the nation’s economy into its first recession in a decade. Aggravated by the terrorist attacks of Sept. 11, the recession led to large reductions in the domestic production of processed mineral materials. Some of the most significant production declines in the US metals industry were registered by aluminum, copper and steel producers. They faced strong foreign competition, higher energy costs and lower prices for their products. However, homebuilding and other domestic construction sectors — major users of nonmetallic mineral products such as cement, brick, glass and stone — remained strong enough to help raise the output of industrial mineral materials slightly above previous year levels. A strong US dollar continued to weaken the competitive stance of US metal and nonmetallic mineral materials companies alike against foreign producers in markets at home and abroad.

Jan 1, 2002

By P. A. Plunkert, D. E. Morse, L. McCartan, S. F. Sibley

Following the recession of 2001, restrained consumer spending, declines in domestic manufacturing and industrial output, and increased unemployment led to a lack-luster year in the domestic economy. In 2002, the U.S. real gross domestic product (GPD) grew only 2.4%. Significant production declines in the U.S. metals industry were registered by copper, lead and zinc producers. Steel producers, despite a slight improvement in shipments, continued to face strong foreign competition, higher energy costs and lower prices for their products. Homebuilding and other domestic construction sectors— major consumers of nonmetallic mineral products such as cement, brick, glass and stone — remained strong enough to help raise the output of industrial mineral materials slightly above 2001 levels. A strong U.S. dollar relative to other national currencies continued to weaken the competitive stance of U.S. metal and non-metal mineral materials companies alike against foreign producers in markets at home and abroad.

Jan 1, 2003