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By James M. Barker

Marketing is the linchpin of the industrial-mineral (IM) industry. Without markets and consumers for IM products, all other associated IM activities are superfluous. The simple existence of an IM deposit does not mean that it can be exploited. A dynamic interaction between exploration (geology), mining, processing, transport, marketing, sales, and consumers is required for profits. Geology dictates the existence of a deposit, but markets dictate its development, and transportation provides the connection. This is true to such an extent that marketing commonly is called the exploration phase of IMs. Marketing is strategic and includes long-range market-development and planning activities, whereas selling is tactical and more focused on day-to-day consumer interactions. Each will help the other when properly done. Many producers of IMs have failed because of inadequate marketing skill, information, and practice. Over many years at the Montana Bureau of Mines, the many developers seeking technical assistance to find an IM deposit, but who had no marketing plan, always failed. In contrast, the few who sought assistance first on marketing, with the IM deposit to be found later, always succeeded (Richard Berg, personal communication, 1998). Marketing has many facets helped by geologists who must be aware of what marketing is attempting to do. A geologist needs to understand many aspects of IMs: location (deposits, plants, consumers), processing (specifications), transportation (truck, rail, barge, ship), competition (local, regional, national, international), substitutes, pricing, and new developments and market forces of all kinds. Some needed skills are not taught formally to geologists, so well-rounded self-education and on-the-job training are the way a geologist normally enters into IM marketing. The IM geologist generally is associated with marketing either by helping to prepare a market study or by acting on the results of one. Preparing a market study is a two-part process. The first part is relatively simple but requires a time-consuming collation of data into an IM survey (mostly past-and present-oriented). The more difficult and much more important second part entails expanding the IM survey into a market evaluation (mainly future-oriented) that emphasizes forecasting, timing, location, and specific products. A market evaluation generally boils down to formulating the right questions to ask of the right persons. One very good question to ask is, "What could be the market for this specific IM?" while thinking for yourself without excessive recourse to gossip, rumors, promoters, developers, or (at times) IM experts. The evaluation must prove that market potential exists and suggests a marketing plan. Effective marketing is an ongoing process, with the initial marketing plan modified over time, using wide and continuous input to avoid tunnel vision. Industrial-mineral markets are based either on commodity (lower-priced, basic-processing) minerals or specialty (higher-priced, value-added) minerals. IM marketing methods are either product-driven (commodity minerals), a more traditional approach, or market-driven (specialty minerals), but these are neither mutually exclusive nor is one always better than the other. Focusing too much on specialty minerals can lead to problems. A blend of commodity products with specialty products commonly lowers risk and enhances long-term profits. The highest profits occur in specialty minerals at the cost of higher risk and complexity and require intelligent marketing, versatile technical services, and creative research and development. Industrial minerals are best served by an industrial-marketing approach rather than a consumer approach. Modern industrial marketing emphasizes the consumer using the "marketing concept." The marketing concept focuses all management and operational activities on total consumer management and satisfaction similar to the total quality management approaches to excellence.

Jan 1, 1999

By S. A. Bradford

The twenty years before World War I was the Golden Age of copper smelting in British Columbia. In this short time, the smelters developed from small, primitive units to large, efficient operations. The first copper claims had been staked on Howe Sound and Knight Inlet in 1864, and there was extensive copper mining in the interior by the mid-1880s, but before 1895, all ore was shipped out of the country for smelting, converting and refining. The first interest in smelter construction was undoubtedly inspired by a Provincial bonus and Dominion land grants offered to smelter builders. The early smelters made use of small blast furnaces which were designed to smelt any kind of ore, but usually far too little ore was available. The first smelter seems to have been the McRae furnace on the Spillimacheen River (1883), followed by Vancouver (1889), Revelstoke (1891), and Golden (1891) (1). They each smelted a few tons of galena and then quickly closed down permanently for lack of ore. Only smelters that actually produced some copper matte are described in the following sections.

Jan 1, 1999

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company's ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining's future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year's end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year's end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world's gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999

By Kris Inwood

"In 1879, when the Dominion government initiated its controversial program of industrial promotion, iron smelting in Canada was limited to one company producing coke iron on the mainland of Nova Scotia and three small charcoal blast furnaces in Quebec. There was no steel production. By the eve of the First World War, iron and steel were being produced in very large quantities, the companies active in 1879 had disappeared and new centres of integrated iron and rolled steel production at Hamilton, Sydney and Sault Ste. Marie had come to resemble the industry as we know it today. The most dramatic change was that at Sydney, Nova Scotia, where in the early 1900s, two steelmaking companies established works. The Sydney developments have been explained as the result of resource discovery and technical change. W.J. Donald, in his authoritative account of the Canadian iron and steel industry, observes:(1) ""The most rapid growth of the Canadian iron and steel industry has occurred since 1897 ... The remarkable growth has been caused largely by the new conditions of the industry. The discovery and use of Newfoundland ores, together with the availability of Cape Breton coal, has made the Nova Scotia industry not only possible but profitable .... It is a safe conclusion that the Canadian industry would not have been an important one, had it not been for the discovery of the Michipicoten and especially the Wabana (Newfoundland) ores:' Donald also argues that metallurgical progress had been necessary to render the ores valuable. ""Newfoundland ores ... contain a considerable amount of phosphorus, and were made available for steel-making by recent inventions:' The purpose of this paper is to re-examine Donald's story. It will be argued that the origin of steel-making at Sydney is somewhat more complicated than Donald has indicated. The difficulty with Newfoundland ore extended beyond its phosphorus content and a resolution required more than the basic open hearth furnace identified by Donald. Moreover metallurgical change was only one of several developments necessary to induce industrial investment at Sydney. Surprisingly, however, the discovery of iron ore in the late nineteenth century does not appear to be part of the explanation."

Jan 1, 1999

By Gerald A. Crawford

"1880s - Unmasking the Sudbury Basin Falconbridge Ltd. turned 60 in 1988 but its roots go back more than a century to the discovery and development of the mineral resources of the Sudbury Basin. Nickel was first identified in the area in 1856 but sustained exploration awaited the early 1880s and the advance of the CPR westward from Sudbury. Rock was laid bare in the right-of-way and by forest fires and logging. Reddish oxidized outcropping or ""gossan"" were exposed, heralding the presence of nickel as the shape of this astounding geological formation gradually began to emerge. Many great mines of the area were opened up in this period on the south rim of the Basin west of Sudbury. To the east the ore dips below overburden, however, and Falconbridge remained a mere dot on the map until the turn of the century when Thomas Edison detected a magnetic occurrence by dip needle."

Jan 1, 1999

A thermochemical model is developed to study the two-stage smelting reduction process for ironmaking without post-combustion. Steady-state multi-material and heat balance equations are solved simultaneously to study the effect of metallisation, slag basicity, coal rank and heat loss on consumption rates of coal, ore, flux and oxygen and production rate of slag to produce hot metal of a given composition, tapped at a given temperature. The model is applied to the commercial data for a COREX-plant producing a wide range of hot metal compositions, tapped at different temperatures. The computed rates of coal, slag, flux, ore and oxygen were found to be close to the reported ones, but an exact match could not be obtained. It is found that a four per cent change in metallisation brings changes the coal rate by five per cent, flux rate by six per cent, slag rate by eight per cent and oxygen rate by 13 per cent, while a ten per cent change in basicity changes the coal rate by ten per cent, flux rate by 13 per cent and oxygen rate by 22 per cent. Further, it is found that an increase in metallisation decreases the coal rate and export gas. At a given per cent metallisation, the coal rate and the export gas are lowest for anthracite compared to all other types of coal.

Jan 1, 1999

By E. F. Schnitzer, S. R. Mamoyac, P. J. Wampler

During 1996 and 1997, Oregon experienced flooding on a scale not seen in many years. Some gravel pits located near rivers experienced erosion and, in several cases, breaches between the gravel pit and the river. Initial evaluation of several sites that experienced breaches indicates that impacts to the river system are complex and vary significantly from site to site. The impacts to the adjacent river system may be viewed as both positive and negative. Several floodplain-mining sites in Oregon located in areas of historic river flow have reverted to active riverbed. In many cases, state and federal fisheries biologists and university researchers see the resulting increase in channel complexity and habitat as favorable. The Oregon Department of Geology and Mineral Industries – Mined Land Reclamation Program (DOGAMI-MLR) is performing additional studies of the impacts to the off-channel areas that resulted from the 1996 floods. More data is needed to make sound floodplain decisions regarding mining.

Jan 1, 1999

This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

By E. F. Schnitzer, P. J. Wampler

During 1996 and 1997, Oregon experienced flooding on a scale not seen in many years. Some gravel pits located near rivers experienced erosion and, in several cases, breaches between the gravel pit and the river. Initial evaluation of several sites that experienced breaches indicates that impacts to the river system are complex and vary significantly from site to site. The impacts to the adjacent river system may be viewed as both positive and negative. Several floodplain-mining sites in Oregon located in areas of historic river flow have reverted to active riverbed. In many cases, state and federal fisheries biologists and university researchers see the resulting increase in channel complexity and habitat as favorable. The Oregon Department of Geology and Mineral Industries – Mined Land Reclamation Program (DOGAMI-MLR) is performing additional studies of the impacts to the off-channel areas that resulted from the 1996 floods. More data is needed to make sound floodplain decisions regarding mining.

Jan 1, 1999

By W. J. Spat

Political risk is an integral part of the mining business in Northern Andean countries. Peru, Ecuador, Colombia, and Venezuela all have a higher than average political risk compared with other South American countries. Successful operations in such contexts require: 1. Good political risk information; 2. A thoroughgoing political risk management plan; and 3. A strategy to deal with political risk perception on the part of the investing public. Obtaining quality political risk information, developing a political risk management plan, and addressing political risk perception are the foci of this work.

Jan 1, 1999

By John T. Ling

"This paper describes the operation of a rope haulage used as the main system of transportation in an underground coal mine. Prince Colliery, which is operated by the Cape Breton Development Corporation, has been in operation for 23 years and produces 1.2 million tonnes of coal annually. The mine extends a distance of 8000 metres under the Atlantic Ocean. All personnel and supplies are transported by means of an endless rope haulage system consisting of a train of rail cars that are operated by an electric engine on surface. The wire rope is 15 km long and weighs 63 tonnes. The system is believed to be the longest of its type used in an underground coal mine. The design of the system, safety features of the haulage, and problems encountered during the design and construction are described. IntroductionCoal has been mined commercially in Cape Breton, Nova Scotia since the 1800s. Several coal seams that are part of the Sydney coal fields, dip toward the north and northeast out under the Atlantic Ocean at angles between -4 and -15 degrees. Coal has been economically mined at depth in excess of 1200 m and more than 11 km from the coastline.Traditionally, single and double drum hoists have been used to haul the coal to the surface and also for transporting the workers and the materials required for mining up to 8 km. With the introduction of mechanized mining methods in the late 1960s, conveyor belts began to replace rope hoists for coal transportation. Improvements in hoisting system design also allowed for drums that could wind up to 6100 m of 32 mm wire rope in 15 layers.These hoists are commonly referred to as “drop hoists” because they take advantage of the gradient of the slope to assist in allowing the mine car train to reach the end of travel. The cars travel on steel rails and the rope is guided by rollers to reduce friction in the system."

Jan 1, 1999

By Jon C. Yingling

Lean manufacturing, pioneered by Toyota, has been credited with the most significant improvements in production efficiency and product quality since the transformation from craft manufacturing to mass production in the early 20th century. It represents a comprehensive philosophy for structuring, operation, control, and management of production systems that is believed to have wide applicability. This paper outlines major lean manufacturing principles and discusses their potential for application in the mining industry.

Jan 1, 1999

By Paul J. Henkels

Synthetic gypsum is the calcium sulfate co-product of a number of industrial processes. Synthetic gypsum utilization as an alternative to the naturally occurring mineral continues to grow in the gypsum industry. In particular, flue gas desulfurization (FGD) gypsum produced by the electrical utility industry has had a significant impact and a far-reaching effect on the gypsum wallboard manufacturing industry. This paper will discuss the various synthetic gypsum sources verses natural gypsum and highlight issues of use in gypsum wallboard and related products.

Jan 1, 1999

By Weber P, Sneyd S

The total world steel production in 1998 amounted to approximately 780 000 000 t. The share of electric steelmaking was in the range of 35 per cent and is expected to increase further to over 40 per cent of the world's production within the next ten years. As electric steelmaking is primarily based on the use of scrap and as it is progressing more and more into higher steel grades the need for low-residual metallics will become increasingly important. Consequently, the demand for scrap substitute material will increase, reflected in the world wide spate of interest for DRI (Direct Reduced Iron) and HBI (Hot Briquetted Iron). The increased significance of DRI/HBI as a substitute for steel scrap has obviously emanated also from its comparatively lower and more predictable costs per ton and definable chemistry. In 1998 already 37 million tons of DRI/HBI were globally produced.

Jan 1, 1999

By M. H. Rogers

Coal has been at the forefront of mankind?s drive to improve his quality of life and also for sustainable development, from the Industrial Revolution onwards. The international coal industry today is large, with some 3,7 billion tons being produced and consumed in 1997. South Africa is an important participant in the coal industry, selling some 220 million tons in 1997 of which 64 million tons were exported. It is the second-largest thermal coal exporting country in the world. Despite the size of the world coal industry, it is not immune to change. The address examines growth projections for the industry and the change drivers that will impact on it in the future. Environmental pressures, the most important of which being the climate change debate, the Kyoto Protocol arising from this debate and the development of clean coal technologies, to reduce the impact of coal production and usage on the environment are considered. Other major change drivers considered are competition from other sources of energy and that between coal producers, the deregulation of the electric power industry, corporate restructuring and for the South African producer, legislative reform. The declining (real term) coal price, the consequent squeeze on margins and the need for producers to actively contain costs is covered. Technology has, in the past, been the driver behind the growth and change of the South African coal industry and its future role in ensuring that coal is the fuel of choice for continued improvement in standards of living and economic development is addressed.

Jan 1, 1999

By S Munn

Today, it can be said that the majority of mines utilise communications equipment in one form or another. Either for communications between staff making their day-to-day operations more efficient, or for emergency communications, as well as linking computer based mine management systems, and providing remote control over complex mobile and fixed machinery. With the advances in technology now available, we are moving into the next generation of mine communications equipment, using digital communications in the underground mine environment. It is a proven fact that an efficient underground mine communications system can help maximise production, by providing major gains in areas such as equipment and manpower utilisation, staff and vehicle tracking, reaction times to break downs and emergencies. In this paper we will describe some of the facilities that are currently available, as well as what will soon be available to mining and tunnelling companies around the world.

Jan 1, 1999

By M. E. Rossi

Reconciliation of production information is critical to evaluating the effectiveness of the predictive models, and to allow for optimization of mining operations. Whether mining open pit or underground, mine-to-mill reconciliations can be one of management's better tools to perform proper accounting, and a very useful evaluation and optimization tool. This paper proposes a set of criteria and objectives for a typical reconciliation program; also presents a stepwise, logic approach to performing reconciliations, and discusses the benefits and costs associated with the up-keeping of the information. It also highlights some of the potential pitfalls involved, and methods used to avoid collecting misleading information. These issues are illustrated with an example of a model-to-mine-to-mill reconciliation program being implemented at an operating mine; the program involves multiple predictive models (Long-term and Short-term block models), different open pit and underground mines, stockpiling, and at least 23 different mill streams. This paper presents the initial results of the program implemented at Minera Michilla S.A.

Jan 1, 1999

By Kristen E. Coose

Concrete is a mixture of a fine aggregate (sand), a coarse aggregate (gravel), cement, and water. Cement itself is the most expensive of the ingredients but generally amounts to only about 10% of the concrete mixture. Cement raw materials include calcium, alumina, iron oxide, silica, and gypsum. They are heated and chemically changed into clinker "minerals," which are then ground and shipped as cement. Each of the four main clinker minerals-tricalcium silicate, dicalcium silicate, tricalcium aluminate, and tetracalcium aluminoferrite-impart specific strength and compositional properties to the final concrete product. During hydration of the cement, chemical changes produce new minerals that include calcium silicate hydrate gel (C-S-H, the main constituent of hydrated cement paste), calcium hydroxide, and calcium, sodium, potassium, and sulfate ions, among others. Two main reactions can occur that may be deleterious to concrete. Normal cement pore solutions, in a hydrated cement, contain sodium hydroxide and potassium hydroxide. If these alkali concentrations are too high, they can react with the siliceous aggregate (alkali-silica reaction, or ASR) to form an alkali-rich calcium silicate hydrate gel (C-N+K-S-H), which, upon prolonged contact with water, can expand to crack the concrete. The other deleterious reaction occurs when the mineral ettringite (Ca6A12(S04)3OH12. 26H20) forms after the concrete is hardened (delayed ettringite formation) and cracks the concrete. Many of the concrete bridges and structures built in New Mexico in the past 20 years are in need of replacement due to deterioration. Many others constructed very early on in the century are still sound. By collecting and analyzing samples of both old and new concrete and good and bad concrete, we compared their differences on both a microscopic and macroscopic scale. Samples taken from concrete sidewalks, parking lots, drainage canals, spillways, and a railroad-trestle foundation have construction dates that range from 1923 to 1997. They were analyzed by electron microprobe and by petrographic microscopy. Cracks, air voids, and aggregate alteration were primary locations for investigation and analysis. Using the electron microprobe, ettringite was found in voids of most of the samples, both in good and bad concrete. This leads us to believe that ettringite formation is not causing distress in the concrete. There was one exception in which ettringite was found lining a crack. In this instance, ettringite may have the ability to further the cracking and cause distress. No alkali-silica gel was identified with the microprobe. Using the petrographic microscope in cross-polarized light, a light-brown material was observed that lined some of the air voids and cracks; however, exact mineralogic identifications were not made. Although many instances of chalcedony and other deleterious quartz phases were found, no clear evidence of ASR-gel deterioration was present in our samples using these methods. However, positive identification of the ASR gel was made on an in-place concrete near one of our sample sites and in several sample cores using a newly developed chemical test for the soluble potassium ions associated with the gel. The chemical used in this test is sodium cobaltinitrite, Na3Co(NO2)6.

Jan 1, 1999

By W. M. Williams

"Although manganese is a metal virtually unknown to the layman, it is hardly necessary to point out to the engineer the importance of manganese in modern metallurgy, an importance intimately linked with iron (and steel), the basic materials of engineering construction for hundreds of years and certain to remain so for long into the future. World steel production will approach and perhaps reach 1 billion tons/year in the 1980s; with a manganese content between 0.5% and 1 % in ordinary steels, and more in specialty steels, manganese use worldwide will soon approach 15 million tons annually. Manganese was discovered and isolated in Sweden in 1774 by Karl Wilhelm Scheele (who also discovered molybdenum), but the element was only of scientific interest for several decades. By the early part of the nineteenth century, however, manganese oxide had become commercially available and was in use for colouring glass and for the production of chlorine. Commercial application in metallurgy appears to have been limited to the manufacture of crucible (or ""cast"") steel, a highquality product made by carburizing wrought iron, and melting it in small batches to make ingots which could be rolled and used for special applications, e.g. for the manufacture of fine tools or for ""steeling"" the cutting edges of implements such as wrought iron axes and chisels.* However, it was not until Bessemer's epoch-making invention of cheap steel in 1856, and the dramatic expansion of the steel industry thereafter, that manganese assumed the importance that it holds in modern steelmaking."

Jan 1, 1999

By Dhar B. B, Gupta R. C

Grinding of iron ore is an essential step to utilise ore fines for pelletisation needed for DRI units. While preparing iron ore pellets for DRI production, the iron ore needs extensive grinding which is highly energy consuming step causing the process to become non-viable in some cases. In the present paper an attempt has been made to evaluate grinding performance of thermally treated ore compared to normal ore grinding. Such thermal pre-treatment has been found to reduce the energy requirement with lower consumption rate of grinding media. It has been observed that by applying thermal shock the ore is rendered weak with improved grindability. The stresses generated due to thermal treatment may extend existing micro-cracks in the ore and in some cases it may even nucleate fresh cracks. Experimental studies carried out on thermally treated hematitite ore reveals that the heating to 400¦C followed by water quenching can cause a reduction of 45 per cent in grinding energy. The paper gives the details of the experiment and the Results.

Jan 1, 1999