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By NEFE NONE

Possible New U.S. Half-Dollar. - Tile George Washington Commemorative Coin Act, H.R. 3133, was introduced in the House and approved by the House Banking Committee. It would allow the minting of at least 10 million commemorative silver half-dollars the size of the same coin produced before 1965. A companion bill, S. 1228, was introduced in the Senate. Taxes and the U.S. Minerals Industry. - The General Accounting Office completed a report to Congress on "Assessing the Impact of Federal and State Taxes On the Domestic Minerals Industry." the study presents a quantitative method to assess the effect of taxes on profitability, and suggests ways to use taxes or tax credits to help marginal mine operations and possibly to increase mineral production, Limited copies of the 139-page report are available free of charge from U.S. General Accounting Office, Documents Handling & Information Sevices Facility, P.O. Box 6015 Gaithersburg, Md. 20760.

Jan 1, 1981

U.S. Gold Commission Established. - The President, with the authorization of Congress, has named a gold commission made up of 17 individuals, most of them Government officials, to study U.S. policies related to the role of gold in domestic and international monetary systems and report its findings and recommendations to Congress. U.S. Lead Exposure Ruling. - On June 29, the Supreme Court upheld the Government's right to set lead exposure levels for employees at the workplace. The Court ruled in favor of the Occupational Safety and Health Administration (OSHA) in a challenge by a group that alleged that OSHA had failed to conduct a cost-benefit analysis prior to issuance of the lead standards. It was the Court's contention that Congress did not require such an analysis when it empowered OSHA to establish workplace standards. The petition to the Court was made by the Lead Industries Association Inc., Battery Council International Inc" American Iron and Steel Institute, St. Joe Minerals Corp., and other lead mining and consuming firms.

Jan 1, 1981

By L. Ozdemir

An investigation was made to determine the mechanical properties of oil shale at elevated temperatures and confining pressures, the thermal properties at elevated temperatures, and to provide mathematical models for mine design for in situ oil shale retorting. A review of current activity in in situ retorting is included with a comprehensive list of references. Tests were run at temperatures from 20°C to 500°C and confining pressures to 1500 psi with shale of 10 to 30 gallons per ton. A major loss of strength occured in heating 140°C with a partial regain from 380°C to 500°C. Higher grade shale had lower compressive strength. Elastic properties showed large variations. Brazilian tensile strength showed a similar temperature sensitivity as the compressive strength. Equations were developed for each property in terms of grade, temperature and pressure. Thermal, electrical and acoustical properties showed anomalies through the temperature range. Creep is a major factor in overall deformation of heated shale. Oil shale was found to be an excellent insulator. Loss of pillar support area at 800 hours of heating would be about 10 percent. Good correlation was found between a finite element model using the developed properties and an in situ heater test.

Jan 1, 1981

By Rudolf E. Greuer

Two computer programs for the real-time calculation of concentration distributions in the ventilation system of underground mines were designed. They allow one to simulate the movement of fumes or other contaminants with the ventilating air, the calculation of concentrations at any given point and time, and the determination of the total contaminant exposure at different places in the mine. Multiple and time variable contaminant sources can be handled and recirculation is no obstacle. The, first program is based on an airflow distribution which has, in the input data, to be stated. The second program has been linked to in existing program for the calculation of airflow distributions. Two versions of this second program are provided to accommodate the two existing programs. Several executed examples demonstrate the program performance.

Jan 1, 1981

By Robert D. Brown, Robert B. Parsons

"The mining industry may have survived the October 28 federal budget relatively unscathed, but the same certainly cannot be said of the petroleum sector-and many mining men are left wondering if their industry will be the next one to be singled out for special attention, as federal and provincial governments seek additional revenues and pursue nationalistic or provincial policies.Higher taxes, higher prices, a potpourri of ""incentives"", and a -""Canadianization"" policy mark the principal features of the new National Energy Program released by the government along with Finance Minister MacEachen's budget address.This month, Tax Notes examines the federal budget. with appropriate emphasis on the National Energy Program and its possible future implications forthe Canadian resource industries.IntroductionMost of the Canadian mining industry (tar sands miners excepted) heaved a sigh of relief on the evening of October 28, 1980, as Finance Minister MacEachen confounded the prophets in his budget address by not raising personal or corporation taxes and by making only relatively modest changes in the general tax system. Instead, he concentrated on a sweeping new energy policy. Unfortunately for that important sector of Canada's mining industry which is involved in mining the country's vast tar sands reserves, either now or in the future, the National Energy Program that was introduced along with the budget 'has serious implications."

Jan 1, 1981

By Alan K. Burton

Massive increases in the productive capability of open pit nines after World. War II were in a large part made possible by the introduction of ever larger trucks and the supply of a seemingly bottomless ocean of inexpensive and readily accessible oil. Over a period of about 25 years, a variety of technological developments permitted a tenfold truck payload increase, from about 32 tonnes (35 tons) to 320 tonnes (350 tons). There is no, doubt that this was a remarkable achievement resulting in impressive benefits of scale as well as the ability to control what would otherwise have become an intolerable traffic congestion problem in today's large open pit mines. It became fashionable and economically possible during this time to mine large quantities of low grade material and to tolerate very high stripping ratios. As tine has gone by and as easier to get at and higher grade deposits have been depleted, ore grades have tended to decline while stripping ratios have increased. The alternative to reduced revenues has been an ever increasing demand to step up production which in turn has led to a continuing demand for ever larger and larger trucks. While a larger truck has had the effect of reducing the cost of the operator per unit of material moved and of reducing traffic congestion, it has not specifically addressed the subject of fuel cost.

Jan 1, 1981

By V. E. Suter

Anyone with geothermal experience can readily attest that geothermal operations are a natural extension of oil and gas operations. A geothermal company and an oil company need the same type of people to do the same kind of work. In the geothermal industry, geologists and geophysicists define prospects through surface geology, analysis of surface seeps, magnetics, gravity, and resistivity surveys - techniques similar to those used in the petroleum industry. In addition, shallow (250-ft) temperature gradient holes often are used in geothermal operations. Landmen take geothermal leases that are patterned after oil and gas leases. Exploratory drilling is done with the same drilling contractors and same drilling rigs, with minor modification. Drilling foremen and drilling engineers share the same objective of making the most hole, in the shortest time, at the least cost, with a proper completion. Petroleum engineers test the wells, design the completions, determine the reserves, make economic calculations, work with the tax assessor, and manage the reservoirs. Production engineers build roads, locations and pipelines, install gas/liquid separators and meters, and operate production and injection facilities. A contract to sell steam to a public utility is required. Various governmental regulations, permits, environmental concerns, and public affairs pose similar problems in both industries. Also required of both are top management people who are acquainted with geologic risk, prepared to accept million dollar dry holes, willing to bid competitively at lease sales, and able to invest large sums based on a technology not yet fully proven. Successful geothermal development requires in-depth financial ability similar to that required for petroleum development. A high capital investment is required early for leases, geological and geophysical work, and exploratory and confirmation drilling. After

Jan 9, 1980

By M. P. Adamson, Bryson D. Trexler, R. V. Ramani, Mark L. Koenig, V. Rajaram, Alan Burton, C. S. Crocker, Kim. Y. C., A. G. Law, William C. Larson

Another record year vas experienced by the mining industry as the value of nonfuel minerals production soared to $23.5 billion-up 15% from the previous year. Based on preliminary estimates by the Bureau of Mines, US mine output was the basis for about $225 billion worth of minerals-derived materials. Metal mining accounted for $8.5 billion, or 36%, of the total. Of the 22 metals produced in the US, 11 showed quantity increases, while 16 had value increases. Business Week's survey of 1200 companies (Mar. 17, 1980, pg. 81) revealed that 21 metals and mining companies had sales increases of 30% with earnings up 104%. Higher prices and increased demand for metals were primary factors behind the improved performance. The steel sector reported a 30% decrease in earnings for the year, but the slump was primarily the result of a $383-million loss for US Steel coupled with a 17% decrease in earnings at Inland Steel. Other firms did well in 1979, with earnings up 279% at Interlake and 269% at Kaiser Steel. Major obstacles facing the steel industry included substantial tonnages of dumped and subsidized imports, environmental expenditures, runaway inflation, and price controls. Turning to nonmetallic production, of the 49 commodities reported by the US Bureau of Mines, 29 had higher outputs and 39 had increased values. While production statistics may seem encouraging, government regulations continued to stifle industry efforts to develop needed new capacity. A case in point may be publication of the Environmental Protection Agency's simplified procedure to streamline five permit programs by consolidating them into one. The five included: hazardous waste management, national pollution discharge elimination, dredge and fill, underground injection control, and prevention of significant deterioration. The new procedure, published by EPA in the Federal Register, took 149 pages. AMC's J.A. Overton, Jr., noted that (MCJ, Nov. 1979, p. 39) to visually depict the complexity of the proposed regulations, Sell Oil Co. developed a flow chart mapping a path through one section. The chart required 10 days to map and two weeks for two draftsmen, using computerized drafting techniques, to plot the results. Overton said, "Perhaps the greatest service EPA has performed in preparing its proposal is to demonstrate again that federal regulations have become a complexity compounded by confu¬sion that culminates in a conundrum." While regulatory agencies promulgate new regulations, the lack of a cohesive government minerals policy remained a matter of significant importance to mine management. A non-fuel minerals study to provide input to the Administration for a national minerals policy program was a dismal shock, according to Rep. Jim D. Santini (D-NV). He said the first phase of the program, which was to identify industry problems, failed to come to grips with the hard decisions necessary regarding these problems, their impact, and their interrelationship. Santini said the report failed to acknowledge government's role in the process and absolved the government of any adverse influence on the domestic minerals industry. In response to the phase one report, eight senior mining executives testified before Santini's House Subcommittee on Mines and Mining concerning mineral supply, access to foreign sources, environmental protection, conservation and recycling, national security, and capital formation. By year's end, Rep. Santini promised to prepare a hard-hitting committee report on problems affecting the non-fuel minerals industry to provide a better base for subsequent policy recommendations (MCJ, Jan. 1980, p. 34). On the technological front, interest again centered on mechanization, automation, and scaleup to improve and expand production. Computer use increased for calculation of ore reserves, mine planning, operations research, and mineral processing.

Jan 5, 1980

By K. P. Wang, Ta M. Li

The Chinese energy and mineral industries are readying themselves for a period of dynamic transition, unprecedented in the country's long and sometimes turbulent history. The transition comes as a result of the government's new program of "Four Modernizations" in its agricultural, defense, industry, and science and technology sectors. The announced program is generally considered by Western observers to be a moderate, pragmatic approach to get China on the road to industrial parity with Western nations by the year 2000. The game plan calls for integration with the West to beef up Chinese know-how and the purchase of foreign technology to supplement areas where China lacks the ability to do so itself. While the role of energy and minerals is not specifically mentioned in the program, it was made clear to ME that China realizes the basis of any sustained modernization program is tied closely to the health of its minerals sector. Various published reports have indicated the existence of an already vibrant energy and minerals sector with world rank production in coal, iron ore, tin, antimony, cement, pyrite, asbestos and tungsten to name just a few. For the most part, except for the export metals, the primary focus of China's production has been on fulfilling domestic needs. Now the new initiatives are aimed not only at self-sufficiency, but also on propelling the country's natural resource clout into international prominence. With a mineral resource base that is considered by many westerners a potential bonanza, China's new long march toward modernization will be an exciting adventure, well worth watching. Big Projects Spark Excitement China's renewed commitment to a more liberal program is as much a desire to "walk on its own two legs" as it is a backlash from the frustrating years that followed the Cultural Revolution of the 1960s and early 1970s. Much of the early excitement was initiated by China's Premier and Party Chairman Hua Guo-feng in speaking to the fifth National People's Congress (NPC) in 1978. Here, Chairman Hua presented the Communist Party's 10-year blueprint for economic development. Specifically, the Party's plans called for completion of 120 large-scale industrial projects by 1985. Mentioned were 10 new iron and steel works, 30 power plants, six new railways, 10 oil and gas fields, nine nonferrous metal

Jan 3, 1980

Arsenic.--Inorganic arsenic has been added to the Environmental Protection Agency's list of hazardous air pollutants because of a high probability it can cause cancer. EPA estimates that inorganic arsenic emissions into ambient air total more than 6,000 tons per year, with about 65;L of this coming from the operations of copper, lead, and zinc smelters. Asbestos Detection.--In June 14, the President signed S. 1658 providing $172.5 million to detect and remove asbestos hazards in schools. Asbestos Use Must be Reported.--All firms using asbestos in the manufacture of some 30 categories of products must describe in detail how they use the mineral to the Consumer Product Safety Commission, for all manufactures since January 1, 1977.

Jan 1, 1980

By Byron S. Kutscher

This report summarizes the program to develop and construct an improved light-scattering dust monitor (ILSDM). This improved light-scattering dust monitor, which operates on the forward light scattering principle, provides instantaneous measurements of airborne dust concentrations in units of mg/m. The program was divided into two phases. Phase I involved the design of the ILSDM which was reviewed by the Bureau of Mines. Phase II included the fabrication of a prototype ILSDM based upon the design developed during Phase I. After completion, the ILSDM was delivered and demonstrated at the Bureau of Mines. A description of the final ILSDM design, operating instructions, maintenance instructions and recommendations for additional work are also included in this report.

Jan 1, 1980

By K. P. Bingham

Lime is one of the largest volume chemicals produced in the United States. In 1979 approximately 21 million tons were produced. Lime is, in fact, second only to sulfuric acid as the largest volume basic chemical produced. Lime, also known as quick lime (calcium oxide) and hydrate lime (calcium hydroxide), is the principle alkali used in a multitude of industrial processes. In addition to its use as a principle industrial alkali, lime has experienced dramatic growth in four general market areas during the past 30 years. These four areas are: 1. Water Treatment - Lime is used extensively in treating and purifying water for industrial and potable use, Although significant tonnage is shipped to this market of municipal and industrial water treatment plants, the end-users are widely spread geographically and individual shipments are relatively low tonnage. Lime, which is nonhazardous, can safely be shipped by truck or rail to these small end-users. 2. Municipal and Industrial Waste Treatment - Environmental agencies at all government levels,

Jan 1, 1980

By G. W. Toth

The coal mining cost models described in this paper represent a computerized estimating procedure for analyzing mining costs and requirements of proposed coal mining projects. Both surface and underground mining analyses can be conducted through the use of these models. These models were developed by the NUS Corporation for the Electric Power Research Institute (EPRI). The methodology design of the cost models follows a process engineering approach for determining mining requirements and costs similar to the logic typically employed in preliminary mine feasibility studies. All capital and operating costs associated with a new coal mining project are thereby estimated. The results of these analyses are then entered into a financial analysis framework which computes annual cash flow summaries, utilizing a profit and loss statement approach, to solve for either the coal value/ton (minimum required selling price) or the rate of return on equity for the project. The coal value/ton is also referred to as the economic cost of production (F .O . B. mine, including preparation).

Jan 1, 1980

By Robert L. Davidoff

Growing domestic and global demands for mineral resources have established an imperative need for developing comprehensive, versatile mineral supply analysis evaluation tools. The Minerals Availability System (MAS) of the Bureau of Mines is meeting this need with its computerized Supply Analysis Model (SAM). This paper describes the SAM system and the quantitative methods used by the MAS for mineral supply analyses. The MAS evaluating process consists of deposit identification, tonnage and grade determinations, engineering and cost evaluations, financial analyses, and supply curve generation. MAS has developed this computerized system primarily to facilitate the maintenance of data information for the constructing of commodity supply curves. The SAM system presently has the analytical capabilities of simultaneously (I) evaluating many mineral deposits, (2) updating mineral supply information to reflect inflationary changes in costs and prices, and (3) conducting sensitivity analysis to determine impacts on mineral supply under various conditions. Many potential users in both government and industry will find the SAM system a valuable tool for policy analysis, forecasting, and planning. The SAM system has been constructed so that any types of information that are similar to the data elements in the MAS data base may be used to perform supply studies. The storage space needed for the SAM system?s programs, files, and output data is approximately 14 million characters.

Jan 1, 1980

By James R. Cosby

This report describes work performed for the Bureau of Mines to evaluate available portable instruments for their effectiveness in detecting and locating damaged metallic shields in Types SHD and SHC cables. A second phase of the program is also covered wherein several instruments of a type which show promise are purchased for modification and testing to verify their performance.

Jan 1, 1980

By Roger M. Sherman

[Investigation of mine land characteristics, evaluation of irrigation systems, and evaluations by the mining industry, determined that irrigation is a feasible method for aiding revegetation of coal mined lands in western arid and semi-arid regions. The various regions studied displayed a commonality of characteristics which enables, independent of the site or region, the recommendation of solid set irrigation. Irrigation should be supplemental by complimenting natural precipitation and be should implemented on a temporary basis.]

Jan 1, 1980

New Trade Status for Mainland China--On January 24, the Congress approved a most-favored-nation trade status with Mainland China for both imports and exports. A Presidential Proclamation had been issued earlier in anticipation of the Congressional action. Import duties on such commodities as tungsten, mercury, and antimony are automatically decreased. Defense Production Act Extended--The Defense Production Act of 1950 was extended 60 days to March 28, 1980. The provision for the usual 2-year extension of the Act is reportedly included in an omnibus energy bill that is tied up in committee. The Act under Title III provides for the expansion of productive capacity and supply and, more specifically, it gives priority to defense contracting where defense and non-defense interests conflict

Jan 1, 1980

Dry weather since the third week in January has set back any prospects for an early increase in hydroelectric power in the Pacific Northwest, according to The Bonneville Power Administration. The 25% cutback made in July probably will not be restored in March or April. Noranda Aluminum, Inc., increased its price for 99.5% aluminum ingot from 66 cents to 70 cents per pound effective March 1, 1980. Revere Copper & Brass, Inc., also -increased its price for primary aluminum from 66.0 cents to 70.0 cents per pound effective February 1. Kaiser Aluminum & Chemical Corp. raised its international price for 99.5% primary aluminum from 72.6 cents to 82.6 cents per pound, c. i. f., effective February 26 on new orders and on shipments from March 15.

Jan 1, 1980

By George Chung

"The Iron Ore Company of Canada's Carol Lake Project is Located near the western boundary of Labrador, 960 air kilometers northeast of Montreal (Figure 1).The Concentrator operation was started in 1962 with a capacity to produce 7 million tonnes of concentrate per year. The bulk of the concentrate was pelletized at a 6 million tonnes per year pelletizing plant completed in 1963. The remaining concentrate was sold in the international market. The concentrator was first expanded in 1966 to 10 million tonnes per year capacity with the pellet plant also expanded in 1967 to match the increase in concentrate production. In 1973, the concentrator was further expanded to gear with the increase in concentrate sales. In 1977, more than 40 million tonnes of crude ore was processed to produce in excess of 17.4 million tonnes of concentrate and 10.4 million tonnes of pellets."

Jan 1, 1980

By Charles L. Kusik

As part of an effort to establish the extent of the domestic chromium supply that could be exploited in case of adverse changes in international chromium production and trading patterns, a two-part study was conducted for the Bureau of Mines, to assess the domestic availability of critical metals in scrap containing significant amounts of chromium. This report describes the part of the study that deals with wrought stainless steels and heat-resisting alloys. Data were collected on types of scrap, sources, quantities, and ultimate disposition, leading to the conclusion that In 1917 about 62,000 tons of contained chromium was unrecycled. Unrecovered obsolete stainless steel scrap accounts for most of these uncollected chromium values. Error margins in the amount of uncollected scrap are estimated to be 10 to 20 percent.

Jan 1, 1980