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By Jürgen Lotze

Previously (1981), it was shown that the fiscal policy practised by some IBA-member countries is mainly responsible for a significant shift of known bauxite resources into higher processing-cost categories. The possible impact of politically imposed fiscal costs on the competitiveness of relevant bauxite resources is investigated in detail by means of a model calculation procedure.

Jan 1, 1984

By K. R. Wood, P. M. Blythe, J. A. Finch, M. L. Lavallee

A new analytical approach for characterizing and improving the performance of ball milling is presented. Individual ball mill circuit design and operating variables can be related to overall circuit performance through two distinct parameters for classification and breakage. The ball mill circuit functional performance equation is presented. Applications in the industrial plant and in the research field are discussed.

Jan 1, 1991

By Karl A. Smith, Roger T. Johnson, David W. Johnson

Conflicts are common in the mining industry. Engineers are accustomed to addressing issues such as land use, air and water pollution, and health and safety. Although conflicts of interest are important in the industry, they do not have the impact on organizational decision making that controversy does. Controversy is a type of conflict, probably the most important type, for effective decision making and competent problem solving. It exists when one person's ideas, information, preference, choices, conclusions, theories, opinions, or perspectives are incompatible with another's and the two seek to reach an agreement (Johnson and Johnson, 1979). Interpersonal and intergroup controversy is prevalent in the day-to-day functioning of organizations. If constructively managed, this type of controversy has important implications for effective decision making and problem solving. Too few organizational members accept controversy, and almost none attempt to stimulate it. This is because too few of them understand controversy well enough to accept and use it effectively. Most organizational personnel lack the interpersonal skills needed to stimulate controversy and manage it effectively. Discussion of conflicting ideas may not be common in problem solving situations due to the fear and anxiety most people feel in conflict situations. Traditionally, organizations suppressed conflict. They believed it was avoidable, caused by management errors. Optimal organizational performance required its removal. Conflict, though, is inevitable. And optimal organizational performance requires a moderate level of conflict. Management should manage the level of conflict and its resolution, for optimal performance. The current view stresses the importance of controversy for learning. Confronting a person with a different point of view stimulates that person to gather more information to elaborate, justify, or provide rationale for their position. Controversy: Process and Outcomes The decision making process begins with participants categorizing and organizing current information and experiences so that a conclusion is derived. When participants present their conclusions to another group and realize their conclusions are being challenged, a state of internal conceptual conflict or uncertainty ensues. This uncertainty motivates the challenged group to actively search for more information, experiences, and a more adequate cognitive perspective and reasoning process to resolve the uncertainty. Participants will adapt their cognitive perspective and reasoning through understanding the perspective and reasoning of others to derive a new or reorganized conclusion. This process may be repeated several times before a decision is reached. The active search for additional information on the alternatives is also promoted, along with greater mastery and retention of information and a more accurate understanding of opposing viewpoints (perspective taking). Of the many positive outcomes of the use of controversy, the effect on higher level cognitive reasoning and processing is especially important in engineering decision making. Research has been done on expert-novice difference in medical diagnoses, physics problem solving, and geological exploration. It shows that preparation for verbal interaction and the actual verbal interaction with peers with differing view-points promotes the development of expertise. Constructive Controversy Conditions Some controversies among decision makers concerning their preferred solutions to a problem can be beneficial. But sometimes they are not. As with all types of conflict, the potential for either constructive or destructive outcomes is present. Whether the consequences are positive or negative depends on the controversy and the way it is managed. The conditions and procedures of controversy management that determine the outcome include: the goal structure within which the controversy occurs; the degree of heterogeneity of decision makers; the amount of relevant information distributed among decision makers; the ability of decision makers to disagree with each other without creating defensiveness; and the perspectivetaking skills of the decision makers. Goal structure: Two possible contexts for controversy are cooperative and competitive. A

Jan 3, 1985

By W. Zhang

"Western China has many shallow coal seams. Mining of these shallow seams contributes to environmental deterioration in part due to disruption of groundwater sources. The lowering of the phreatic surface is attributed to the instability of the impermeable rock groups as a result of mining leading to an increase in permeability and drop in phreatic surface. Underground mining with partial backfilling is one of the fundamental methods of controlling the lowering of the water table in sensitive cases. At present, although significant research has been done in shallow seam mining, there has been no research on the laws governing the movement of impermeable rock groups in partial backfill mining using backfill materials of lower strength. this research, conducted in the Yu Shen-fu region of Western China, developed similar material of sand-based paste filling materials, tested the mechanical parameters of similar material of sand-based paste filling materials, researched on long wall partial backfill mining through similar simulation experiments, obtained the development of “upward fractures” and “downward fracture” under different gap-filling widths and body-filling widths and the movement law of impermeable rock groups under different gap-filling widths and body-filling widths. INTRODUCTION Jurassic coalfield is in the North of Shaanxi province in China, located in border areas of the Maowusu Desert and the Loess Plateau, water resources of Jurassic coalfield in the North of Shaanxi province is meager, ecological environment is fragile (Wang, 2010). With the large-scale development of the mining area, permeable fracture zone will directly affect and spread to the aquifer, causing direct damage to water sources, and lead to the dried up of reservoir, river, wellspring which is recharged by the aquifer(Qian, 2003). There are many researches on aquiclude or impermeable rock groups of shallow coal seam in china, but researches are mainly based on the key strata theory characterized by hard rock as skeleton, without considering the flexibility of impermeable rock groups which is important to reduce the cost of control (Huang, 2010). There are some researches on the stability of impermeable rock groups, but the researches are mainly on permeable fracture zone, which is also called the ""upward crack"" (Wang, 2010), ignoring the influence of the ""downward crack"" on the edge of subsidence basin of impermeable rock groups (Huang, 2010). Previous researches showed that pillar-and-room mining can control the rock crack and surface subsidence (Qiu, 2013), but with the loss of coal resources, and existing disaster a threat of a large scale roof falling. Partial backfill mining mainly by eolian sand bring hope to water-preserved-mining (Fan, 2000), successful practice of paste material backfill mining under buildings and water(Song, 2010)showed its feasibility. Through useing the filling materials with low strength, flexibility and small ratio of height to width, eliminated the threat of a large scale of roof falling, the quantity of partial backfill materials relative to full backfilling are little, the price of sand paste backfilling material is low(Huang, 2011), through designing rational parameters of partial backfill mining, we can achieve the purpose of protecting the phreatic. In this paper, based on the similar simulation experiments, researched on development of the ""upward crack"" , ""downward crack"" and subsidence of impermeable rock groups, researching results can provides the rational parameters to partial backfill mining, and can reduce the cost of filling mining."

Jan 1, 2015

By Pengfei Wang, Guorui Feng, Shufeng Zhang, Yuxia Guo, Tingye Qi, Dian Li

"Based on the geological conditions of the No. 10203 mining face of the Xinyang coal mine, a numerical model of the longwall backfilling face is built using the FLAC3D software to calculate the limit broken length of the key strata. Based on the deformation laws of the immediate roof, the backfilling parameters are determined. Furthermore, the movement laws of the overburden strata with different volume filling rates (0, 40, 60, 100, and 100%) and with different layout forms of the filling strip (under a volume filling rate of 60%) are analyzed. The results of the numerical modeling show that the stress of the two sides of the working face and the deformation of the overlying rock are gradually reduced with the increment of the volume filling ratio. In view of the deformation of the roof strata within the allowable range, a volume filling rate of 60% is selected to simulate and analyze the filling effect under different layout forms of the filling strip. The filling width, stress concentration area, and layout form of the filling strip are the key factors to control the movement of the overlying strata. In addition, the probability integral formula is used to calculate and predict the ground subsidence on the filling area, which confirmed that the backfilling mining method is fully applicable in the Xinyang coal mine. The results of this study provide a certain theoretical basis for the determination of the filling process in the field.INTRODUCTIONIn China and other coal producing countries, gob is managed using the caving, filling, supporting, and slowly sinking methods (Zhang, Zhou, and Zhang, 2009). With the continuing development of the concept of green coal mining (Guo, Deng, and Zou, 2004), the filling method, which is safe and environmentally friendly, has been widely used in the field. On one hand, this method could reduce waste rock and other waste discharge. On the other hand, it could effectively slow the surface subsidence. Recently, strip-filling mining mostly adapted the arrangement of the strip backfill with equal intervals and widths (Xie et al., 2004), but the reasonability of this arrangement should be discussed. To arrange the intervals and width of the strip-filling body reasonably, Feng et al. (2019) put forward the “constructional backfill mining (CBM)” concept. The CBM is a type of backfill mining with low backfill rate, strong structural stability, and good backfill effect. The targets of the CBM include the efficient usage of solid waste resources in mining areas to reduce the backfill cost, the improvement of backfill materials and backfill technologies to increase the backfill efficiency, and rational planning of backfill and mining scheme to reuse the underground mining space. The determination of proper width and intervals for the strip-filling body is the main content of the CBM. Strip-filling mining using cemented coal gangue backfilling is the main method to undertake overburden of the overlying strata and to slow down the surface deformation. It also plays an effective role in cost reduction (Xu et al., 2007). This study focuses on proper determination of the strip-filling body parameters according to actual geological conditions by a simulation. It provides an appropriate reference for backfill mining in the Xinyang coal mine."

Jan 1, 2019

By G. J. Simandl

Jade is a commercial term encompassing green, white, black or yellow-brown jadeitite and nephrite. Jadeitite consists of Na-rich pyroxene, whereas nephrite consists of prismatic to acicular amphiboles of the tremolite-actinolite series forming bundles that are randomly oriented and interlocked. Nephrite is tougher (harder to break) than jadeitite. Its fracture strength is about 200 MN/m2 whereas that of jadeitite is about 100 MN/m2. On the other hand, jadeitite has a higher hardness (7 compared to 6.5 on the Mohs scale). There are over fifty known nephrite occurrences in British Columbia (B.C.). These occurrences consist of individual blocks, boulder fields, talus blocks and in situ occurrences. Most of the in situ occurrences are lens or cigar shaped. They occur at, or near the contact of ultramafic/mafic rocks (mainly serpentinites) with cherts, and other metasedimentary or igneous felsic rocks of Mississippian to Jurassic oceanic terranes such as Cache Creek and Slide Mountain. These contacts are commonly interpreted as shear/fault related. In general, it is believed that the B.C. nephrite formed by metasomatic exchange between ultramafic and silica-bearing rocks. Impurities in B.C. nephrite are spinel group minerals (chromite, magnetite, picolite), diopside, uvarovite, titanite, chlorite, and talc. Jadeitite is slightly denser than nephrite and good quality material sinks in methyl iodine. There are no known jadeitite occurrences of economic interest in B.C., but there are at least four geographic areas where favorable lithologies, and metamorphic conditions (Pn) required for the formation of jadeitite coincide. These are Bridge River, Pinchi Lake, Dease Lake, and Jennings River. These areas are known to contain small concentrations of jadeite, or are characterized by blueschist or eclogite-grade metamorphic conditions. Rhodonite and pyroxmangite are MnSi03 polymorphs. These minerals are pyroxenoids and are macroscopically and microscopically very similar. For brevity, both are grouped together under the term "rhodonite". Most of the B.C. occurrences are hosted by late Paleozoic chert sequences and are lens shaped and concordant. The common association of rhodonite with iron formations, jasperoids, and/or volcanogenic sulphide deposits in southwestern B.C. permits the delineation of favorable horizons using magnetic or electro-magnetic geophysical methods. Geographic associations between manganese showings and sulphide deposits, and the hydrothermal chemical signature of the rhodonite occurrences from this area, suggest a genetic link between rhodonite and volcanogenic sulphide deposits. The typical rhodonite rocks consist of rhodonite, pyroxmangite, neotocite, black amorphous Mn-oxides, Mn-bearing garnet, ± epidote, ±chlorite, ±rhodochrosite, ± parakutnah-orite, ± Mn-bearing calcite, ± iron oxides and hydroxides. Garnet ± epidote forms yellow patches and layers within the rhodonite. Within some of the rhodonite occurrences, the garnet is altered to chlorite. Rhodonite-bearing rock is commonly cross cut by secondary manganese oxide veins, creating a characteristic web-like texture. In several localities, the contorted bedding planes are readily recognized. Mn-calcite and quartz also crosscut rhodonite. Rhodonite deposits hosted by high grade metamorphic rocks may contain pyroxmangite. Rhodonite is an important gemstone and ornamental stone in B.C., second only to nephrite in dollar value. B.C. nephrite and rhodonite have been used for the past 100 years in local jewelry and ornamental applications. More recently they have been used in table tops, and they have potential as upscale materials in tile-making. There may be a market for tiles made from lower grade materials that were previously extracted and stockpiled. The prices of nephrite, jadeitite, and rhodonite vary widely with quality, but gem and ornamental grade stones are relatively highly priced materials and they trade world-wide.

Jan 1, 2001

By Hans E. Tausig

The economics of transporting minerals by sea in less than full cargo lots encompasses an analysis of production costs, sale and inventory calculations and a careful comparison of ocean freight costs all of which when pieced together will usually definitively indicate which of the ocean freight alternatives is the correct one for the economic factors involved. To illustrate: Let us assume that a production to be marketed yields 60,000 metric tons of copper concentrates over a twelve month period. Shipment is geographically viable through Vancouver, B.C. The production has been sold to a Japanese Smelter and the mine produces at a rate of 5,000 metric tons of concentrates per month. The copper has been sold CIF FO. The Seller has carefully investigated ocean freight rates Vancouver, B.C./Hibi, Japan and finds that he could obtain a twelve month freight contract at $15.00 per metric ton FIGS based on a loading/discharging speed of 4000/ 2000 metric tons per WWDSHEX (weather working day, Sundays and Holidays excluded) this freight rate being predicated on shipping in lots of minimum. 15,000 tons. A further freight investigation reveals that to ship at the same terms and conditions but in lots of 5,000 tons, and shipping each month (in accordance with the mine's actual production) would cost $20.00 per metric ton FIOS. The calculation that is now made is whether it is more desireable to pay a higher ocean freight by shipping in 5,000 ton lots or to pay the lower freight where here the ocean freight involves a difference of some $300,000.00.

Jan 1, 1979

By Roy A. Grancher

CYCLING WITH CEMENT "THE WHEEL IS COME FULL CIRCLE" Shakespeare's King Lear Act V, Scene 3, Line 176 The time clock of the cement industry has been turned back to the early 1950s. After the trials and tribulations of the decade of the Sixties, the hands now stand where they did just over twenty years ago. Cement shipments have steadily increased, with a record 419 million barrel level (78.8 million tons) being reached last year. Plants are operating at average utilization rates in excess of 85 percent of rated capacity. The spread between supply and demand has narrowed to where a definite shortage of cement now exists within the industry. The notable and unfortunate difference between the two periods however is that, back then, cement's returns were a respectable 14 to 18 percent, whereas today they stand at less than half those levels. Insufficient return forms the present foundation of the U.S. cement industry. This lack is destined to have a cumulative effect. Just as the industry's balance between supply and demand is returning to favorable proportions, promising a period that has historically and now should generate those profit levels required to modernize and provide for capacity addition, cement instead finds itself frozen by federal price controls into the semi-depressed condition that has existed for over a decade and from which it was just starting to emerge. Capital is not attracted to continued low returns, and increasingly restrictive pollution control measures are necessitating great non-productive expenditures be made as definite costs to stay in business. Even a clouded crystal ball would reveal that additional cement plant closings can be expected.

Jan 1, 1972

By Thomas P. Goslin

T e mechanization of industry to reduce labor costs and to improve product quality is affecting he scale industry as it has affected many other industries. With increased emphasis on higher production rates many operators are experiencing difficulty in overcoming production problems where weight is a factor. Unfortunately, the scale industry has not shown the development over the last twenty-five years that other instrument industries have. For centuries the balance scale has been the standard and the workhorse of most weighing operations. In recent years considerable effort has been applied to designs to make balance scales more acceptable to industries employing automatic or semi-automatic processes. For the most part the designers have not attempted to replace the basic scale but toautomate functions of material handling and human judgement. Modern dump scales, for example, will accept material from a conveyor until a preset amount of material is on the scale, At this time the scale turns off the conveyor, dumps the load of material and repeats the operation with any desired timing. These improvements have helped industry. Even the scale observer has been replaced with devices which observe the scale reading and operate on weighed objects according to their weights. In spite of' the application of automation to the material handling, the balance scale has not been completely satisfactory. One reason for this is fairly evident when one considers the construction of the scales. Inherently, they are slow devices because of the inertia of the beams. The beam scale, primarily a static measuring device, is at the best limited to slow dynamic measurements.

Jan 1, 1958

By David. C. Hoffman

As you are all well aware, the minerals processing industry and process industries in general are now heavily involved in reassessing their process flowsheets. The topic of concern is the little arrow in one corner of the drawing at the end of the process flow that usually says "to waste." A really startling statement might have said "to waste disposal area," which implied that there was some concern, thought, or measures taken to deal with the waste. Since 1965, the year of the Water Quality Act, many laws have been passed and agencies formed dealing with the multi-faceted area of pollution. One of these laws, the Air Quality Control Act of 1967, was the initiating force in the development of Calcilox additive to help solve the problem of sludge disposal resulting from the scrubbing of SO2 bearing gases. The intent of this paper is to focus in with a wide-angle view on a particular type of waste stream, generally an aqueous, inorganic slurry, and present the reader with an alternate approach to their disposal via Calcilox additive stabilization. Each waste stream is unique and will require different techniques to meet the design objectives. Calcilox additive is not intended to be a panacea for every slurry disposal problem, but, rather a viable alternative that should be investigated before a final waste disposal approach is chosen. This paper will summarize the development of Calcilox additive; briefly discuss stabilization; and most importantly, discuss some applications to develop a feeling for Calcilox additive stabilization. Actual dollar costs will not be presented, for each waste stream differs and the ultimate disposal mode chosen greatly influences the costs.

Jan 1, 1976

By Andrew Mackenzie, Paul Rantala

Data is now appearing in literature that indicates many current paste fill systems in Canada suffer from plugged lines and severe wear rates. Both of these conditions suggest: design problems with the pipe distribution system, backfill composed of poorly graded material and/or possibly poor operator practices. Problems that can be prevented in the design stage, but still may be readily solvable with current technology. However, if left untreated will lead to an increasing frequency of down time. The compatibility of the distribution system with the paste fill rheology is fundamental and essential for the reliable delivery of fill. Either many mine operators are not familiar enough with the technology to provide a critical review that could foresee problems down the road, prior to construction and or North American designers are not clarifying their designs to their customers. The objective of this paper is to highlight key concepts to mine operators with the purpose of better enabling a critical review of contractor's/consultant's designs. There is a great deal of understanding about the rheology of backfill over a range of pulp densities from hydraulic slurry to dense to paste. However, outside of deep mines (especially in South Africa) neither hydraulic or dense fill distribution systems have suffered the problems of paste fill. Paste fill is fundamentally different from hydraulic fill principally in its transportation characteristics. These differences have a direct impact on the design of the distribution system. By understanding the practical implications of these differences the operator can play a more active role in their design while better appreciating how to best operate their own system.

Jan 1, 2001

By Victor F. Hollister

This section includes examples of discoveries of Kuroko- and Anyoz-type massive sulfides, and shale-hosted, zinc-lead deposits, and describes exploration models for each group of case histories. Exploration or empirical models can differ from genetic models, because ore guides and controls are emphasized in exploration models. Genetic models may form the scientific basis for exploration or prospecting models, although factors that are important to the localization of ore are stressed in exploration models. The paper by Sato (abstracted herein) on Kuroko deposits can be used as a general exploration guide for that type of deposit. It is clear, however, that no unambiguous stratigraphic control for Kuroko-type ore is given in the Sato paper. The paper by MacIntyre (an excerpt herein) describing Gataga, Midway, and Windy Craggy includes most of the elements of the shale-hosted and Anyox models. Although more recent work by the Geological Survey of Canada has modified the Windy Craggy stratigraphy, the Anyox model as applied to Windy Craggy is well described in the MacIntyre (1983) paper. Discoveries of ophiolite-, Ducktown-, volcanic-associated Ni- Cu-, and Besshi-type deposits are not included in this section. Conformable massive sulfide deposits are generally assumed to be syngenetic. Sulfides in the crosscutting feeder zones, however, are classed as epigenetic. Therefore, volcanogenic massive sulfides can contain both a syngenetic and an epigenetic component. Vital to the development of the epigenetic component is a heat source that propels the convection cycle that forms both components. In all massive sulfide discoveries described in this section, it is assumed that a volcanic magma fueled the hydrothermal fluids.

Jan 1, 1991

By J. W. Wilson, S. Nakajima, B. D. Singh

According to the Project Independence blueprint, a 270 percent increase in coal production is expected from western coal fields compared to an increase of 100 percent for the nation as a whole. Furthermore, 30 percent of the total United States coal reserves lie in the western states, which are classified as beyond the strippable limits and can be recovered only by underground methods. In view of the fact that the majority of the seams in the West are thicker than those presently mined in other parts of the country, it is important to consider the parameters that relate to mining thick seams and the factors that affect such mining systems. Apart from thick seams, a common feature of many western coal fields is the occurrence of multiple seams that lie in close proximity to one another. These multiple seam deposits present difficult mining problems that have not been encountered to any degree in other U.S. coal fields; for example, ground pressure changes in one mine level caused by mining in the other, sudden water or gas influx from the adjacent levels, the danger of spontaneous combustion in gobs and large and complex subsidence displacements on the surface. Perhaps equally important is the fact that the country can ill afford the present systems of underground mining that attain only 50 to 60 percent coal recovery. With the probability of increased thick seam mining, conservation shall be a focal point in future mine design systems. It is possible that in the future it will be forbidden to adopt the present day wasteful mining methods to ensure that coal can be conserved for future generations.

Jan 1, 1977

By J. Keng, S. T. Chen, T. M. Shih

Kwanyin Tunnel is presently the longest (7.7 km) railway tunnel in Taiwan. Due to heavy railway traffic, a pass-by station will be built inside the tunnel to increase the traffic flow. Since the concentration of toxic gases released by the locomotives may reach dangerous levels, a research program was conducted for the purpose of designing a ventilation system which could dilute and/or remove the toxic gases to maintain an acceptable pollutant level. The program consisted of two parts. The first part was field measurement during which the concentrations of pollutants and wind velocities were measured at various points inside the tunnel to acquire basic data regarding ambient air quality, piston effects for the different types of trains, and existing ventilation conditions. Weather data (temperature, humidity, atmospheric pressure, wind direction and velocity) were gathered at many stations, both on the surface and inside the tunnel. The amount of pollutants released by each type of locomotive for various conditions were also measured. The second part of this study involved establishing mathematical models for predicting the air quality of the various proposed ventilation systems. Three different models were used for this work. The first one is a piston effect model which assumes that the gases and air undergo immediate mixing inside the tunnel. The second one is also a piston effect model which assumes that the diffusion ability of the gases is zero. The third one is a conventional ventilation model which was used for natural and mechanical ventilation conditions. From the result of field measurement and mathematical model studies, a ventilation system was chosen with consideration of both ventilation effects and construction costs.

Jan 1, 1987

By G. H. Khoe

addressed in a number of studies in the past. In this paper, the stability of a ferrous arsenate compound is evaluated using a solution model and the thermodynamic data which were determined for the system. The environmental stability of the ferrous arsenate precipitate is compared with the literature data for ferric arsenate and arsenate-bearing ferric hydrous oxide.

Jan 1, 1991

By Robert L. Sandefur

Geostatistics of coal thickness and quality parameters for various coal seams in the San Juan Basin of New Mexico are reviewed. Interpretation of the histograms, variograms, and drifts of the data in the context of depositional environment and post-depositional geological history is discussed. A multivariate geostatistical technique for checking the accuracy of seam correlations is demonstrated.

Jan 1, 1982

By L. W. Cope

Cuba is a mineral rich area, and the Cuban government is encouraging mining investment in the country. Joint ventures with government entities are encouraged. This paper will give some insights into the laws and regulations, and the agencies to contact for investment and development. The present-day situation of the US sanctions against Cuba will be covered.

Jan 1, 2004

By T. N. Singh, M. M. Singh, R. B. Singh

Fly rock is common when blasting shallow holes and during secondary blasting. Although the required quantity of explosives for secondary blasts is less, noise and fly rock can have an enormous environmental impact. This paper mainly deals with field experiments on blast-design parameters and addresses some precautionary measures that can be taken when pop shooting.

Jan 1, 2000

By J. Changsheng, Z. Youdi

Based on the criteria of maximum net present value per ton of reserves and on the optimum matching of some other essential parameters, a comprehensive optimization model of surface-mine production rate is developed using system- engineering approaches and using the theory of economy of scale. A mine is then selected to demonstrate the application of the model.

Jan 1, 2000

By Timothy J. Haddon

For the mining industry in general and gold mining in particular, the past few years have been difficult. Economic conditions, coupled with growing regulatory restrictions, have led to increasingly important reasons for managing assets wisely. From a public company perspective, such asset management makes sense because it ultimately provides for an increase in shareholder wealth, and that is why we are in business. Regardless of whether a company is public or not, assets must be managed effectively to remain a player in today's competitive environment. So, as the chief executive officer of a gold mining company, how do we manage our assets to ensure that we are satisfying our obligations to our customer-the Amax Gold shareholder? The gold industry has been under siege. We have just completed the third year with average prices below $12.85/ g ($400/oz). When finding, and/or acquisition costs and development costs to operating costs are added, there isn't much of a profit margin left. What this environment provides, however, is opportunities for growth. In the gold business, you either grow or you die. Today, most North American gold producers have, at most, a 10-year mine life. We are all scrambling to add reserves so we do not become extinct. As prices remain low, opportunities abound for increasing diminishing reserves. This is the time for the opportunistic company to take advantage of market conditions and that is precisely what Amax Gold has done. There are six components to running a successful gold business: • finding reserves through exploration, acquisition or joint venture, • financing the project, • permitting and constructing the project, • operating the project, • cash management and • communication.

Jan 1, 1992