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By Henry E. Reed

This presentation is about a small company, Industrial Mineral Products, that was formed in 1972 with one product and one customer and by a series of value-added changes avoided disaster and increased sales many times over. The principal of the company stopped by my office in Seattle looking for industrial mineral opportunities in the Northwest. We got together and went through all the minerals in Ladoo's "Industrial Minerals" from Abrasives to Zircon to see if we could find something available on the vast holdings of the Burlington Northern. At that time one of our lessees was operating a silica sand mine near Ravensdale, Washington and indicated that he might be interested in selling out. This sounded interesting to my client and within two weeks the transaction was completed.

Jan 1, 1990

By Steven B. Van Kouteren

Added value is a term loosely used in the industry, but what exactly does it mean? What does it take to make a value-added product and more importantly how does a company maintain the value added to its products? Most people agree that value-added means the value of a mineral minus the cost to produce it. But what is misleading is that producing value added products does not necessarily guarantee the profitability of the products. In some cases firms that make "value-added" products are not very profitable. It is not only important to understand how to make a value-added product but also how competitive forces in the market can erode the value added. Therefore, when we look at value-added opportunities, we must understand how to obtain the value added and more importantly how to maintain the value. There are four major factors that limit a company's ability to add value to its products. This paper will examine these factors and will use the ground calcium carbonate and mica industries as examples.

Jan 1, 1990

"In 1989, improved milling and recoveries resulted in a record production of 7 722 200 Ib Nb2P5 at the Niobec Mine. At the beginning of 1990, proven and probable reserves stood at 11 952 000 tons grading 0.65% Nb205. This year, the world steel market has slowed and as a result, niobium consumption is down. Consequently, production at the mine dropped 14% for the second quarter.IntroductionThe Niobec Mine is located approximately nine miles northwest of Chicoutimi, Quebec, (Fig. I). After ten years of production, the Niobec Mine is the only operating niobium mine in North America and the second largest producer of niobium in the world after Brazil.The Niobec Mine is a joint venture held equally by Teck Corporation and Carnbior. Teck Corporation operates the mine while Cambior is responsible for marketing and selling the niobium pentoxide concentrate (Nb2P5).The deposit was discovered in 1964 following an airborne radiometric survey in search of uranium. However, mining of the deposit did not begin until 1976. The initial production capacity of 1500 tons per day was increased several times to the present capacity of 2450 tons . The deposit is considered as an ample source of pyrochlore concentrate for at least 15 years at the present production rate.Niobium, also known as columbium, is a greyish-white metal used primarily as an alloy in various steels and other metals. The use of niobium in alloys heightens tensile strength and improves corrosion resistance while at the same time reducing the weight of the alloy. Niobium is also used in the fabrication of steel for the aerospace, automobile, and oil and gas pipeline industries. Although substitutes for niobium exist, their use often results in diminished performance and net cost increases."

Jan 1, 1990

By A. V. Castelli

The provinces of Guangxi, Guizhou, Hubei (and most recently Fujian) were the prime exporters of barite during this period. Guangdong and Shandong were exporters too but not major participants. These are all primarily agricultural areas so there existed a sufficient labor force willing to work in the mines to supplement their income from farming. During the early years, barite export pushed the existing transportation systems in these provinces to operational capacity. The mines from which this barite is extracted are located about 250 to 1,400 kilometers from the sea ports. Transportation of the ore from the mines to the ports follows a net-work that includes trucking to various rail-heads where it is then shipped via freight trains to ports for loading into seagoing vessels. in some instances, the barite travels by truck or train to the Yangtze River where it is then barged to an ocean port.

Jan 1, 1990

Traditionally, capital costs of major resource development projects have been estimated as a single amount to which a percentage accuracy has been assigned based on the method of preparation of the estimate, that is, on the amount of information available to develop the estimate.However, there is a growing recognition of the importance of a probabilistic approach to capital cost estimates, and of a more rigorous calculation of estimate accuracies and of the presentation thereof. Accuracies can be expressed with more certainty as a percentage of the estimate amount where the percentage represents one standard distribution on the probability curve for the capital cost of that specific project. Thus confidence levels can be stated for various estimated amounts - for example, it can be stated that there is an 85% chance that a stated amount will not be exceeded, or a 90% certainty that a (higher) amount will not be exceeded. Moreover, the right skewness of the probability distribution curve for most projects can be readily recognised and reflected in the evaluations. This enables senior executives and board members to have a clearer understanding of investment uncertainties, and the possible magnitude of commitments.

Jan 1, 1990

By R. E. MacDougall

Very few mineral properties spend their entire lifespans from discovery to depletion in the hands of one owner. More likely, properties will have several owners, and partial interests may change quite often. Similarly, mineral companies are bought and sold with frequency, in recent years at what appears to be an accelerating rate. The reasons for selling a property can be manifold -need for additional capital in other parts of the business, need for development capital, realization of a large gain at a perceived high point in the market, pessimistic commodity outlook, retirement of principals, or resolution of estate problems. Regardless of the reasons for a sale, there are specific steps that logically follow. Spruce up the business, package the information, market the property, negotiate the terms, close the sale, and make sure it stays sold. Adherence to certain very basic ground rules in property sales can maximize the profits and minimize the effort.

Jan 1, 1990

By B Vernon, M Whiteley, T Robinson

The Western Australian gold industry has approximately 100 operating plahts, mainly CIP/CIL. The nature of the State's rapidly expanding gold industry gave rise to concerns over management of the  cyanide hazard, in that most plants are remote from major population centres, have a workforce with a high tum over and use highly saline process water. Approximately 4500 workers in the industry have the potential to be exposed to cyanide in the course of their normal work.   This paper outlines the risk management strategy developed by Government and industry to monitor atmospheric HCN gas in the work environment and the role of continuing education and training along with regular site inspections by Department of Mines Inspectors.

Jan 1, 1990

By G. P. Larson

We define a specialized mineral market as follows: Specialized Markets are markets where a low volume of a given mineral is used to convey a large benefit to a specific product. Sales of these value added minerals to small markets generally require a different marketing approach compared to bulk or commodity markets for traditional minerals. Specialized and commodity markets are differentiated by several characteristics as listed in Table 1.

Jan 1, 1990

By J. Iannicelli

Kaolin, normally an inert filler when compounded with polymers, is converted into a strongly reinforcing pigment by prereaction with certain functional silanes. Modification of kaolin with amino and mercapto silanes allows it to form crosslinks and confers significant improvements in modulus, abrasion resistance, compression set and other physical properties of a broad range of polymers.

Jan 1, 1990

By Jeffrey L. Zelms

Environmental issues and how they are addressed -- or not addressed -- by the lead industry in the 1990s will determine the eventual fate of lead mining in both the U.S. and worldwide. Clearly, governmental regulation throughout the West will become harsher. Equally clearly, the industry has? failed to educate the public regarding lead. Instead of public support for a critical mineral, we face widespread public ignorance and paranoia. If we can demonstrate the public interest benefits of the industry, the 1990s will be a decade of continuing growth -- not dynamic growth, certainly, but growth at least comparable to the world economy. If, however, we fail to demonstrate the industry's public interest benefits, the 1990s could mark the beginning of the end of our business.

Jan 1, 1990

By T. D. Hackett

Multislice mining methods were analyzed by the U.S. Bureau of Mines to determine their application to western United States thick coal seams; ground control, geology, and costs were considered. Multislice mining is used in widely varying seam conditions worldwide, including flat seams too thick to mine in a single pass, pitching thick seams, and seams containing a rock parting. Longwall multislice methods predominate, but room-and-pillar variants also exist. The initial use of the method in western seams is planned at a deep Colorado mine where a rock parting will be used to separate two slices mined by longwall. Ground control and spontaneous combustion are major hazards associated with multislice mining. A well-consolidated upper slice gob can reduce ground control problems and provide a seal against spontaneous combustion. Geologic analysis indicates that the consolidation of the gob depends on the composition of the upper slice roof, the presence of water, and sufficient overburden pressure. A geologically competent intermediate rock parting can also reduce ground control problems and seal against spontaneous combustion. To compete in western coal markets, the cost of multislice mining must be within the range of normal longwall costs. Analysis indicates that multislice operating costs should be within this range, and that multislice mining costs decrease as panel width increases. Relatively wide (600 to 800 ft) panels also provide increased coal recovery.

Jan 1, 1990

By L. B. Phelps

This paper focuses on the use of an integrated mine planing software package entitled "REMINE" which was constructed to provide a project evaluation tool for analysis of remining projects. Coal remining constitutes the affecting of sites which have had a past history of mining and have a pre-existing pollutional discharge. Such sites require a Best Professional Judgement (BPJ) analysis. The program was written to provide such an analysis with flexibility in the mine plans which can be analyzed. The process required for a BPJ analysis will be detailed and mine plan simulation performed to demonstrate the analysis.

Jan 1, 1990

By M. R. Peterson

The U.S. Bureau of Mines investigated column flotation for recovery of a high-grade fluorite (CaF2) concentrate and byproduct concentrates from the Fish Creek fluorite deposit in Eureka County, NY. The recovery scheme consisted of (1) grinding the ore to minus 48 mesh, (2) fluorite rougher and cleaner flotation, (3) desliming the rougher fluorite flotation tailings at 20 Jjm, (4) mica flotation, and (5) silicate rougher flotation. Acid-grade fluorspar, mica, free silica (Si02) sand, and low-grade beryl (Be3Al2S~018) concentrate were produced in a 100 lb/h continuous column flotation unit (CCFU). The highest results achieved were %.6-pct CaF2 recovery in a fIrst cleaner concentrate containing 99.7 pct CaF2. Beryl recovery was as high as 92 pct at a grade of 5.3 pct BeO. The silica sand, which assayed 98 pct Si02, was recovered as the rougher beryl flotation tailings. Collector reagent consumption was reduced 45 pct for fluorite and 58 pet for silicate flotation in comparison with bench-scale conventional flotation. All products were signillcantly improved in both grade and recovery over conventional flotation results, and the recovery scheme was simplifIed by removal of several stages of flotation in the fluorite and silicate flotation steps.

Jan 1, 1990

By T. R. A. Davey

The technologies of lead, zinc and tin extraction have made varying degrees of progress over the past twenty years. Producers of all metals have faced increasing demands for reduction of pollution and environmental degradation, and the level of public concern is rising rather than abating. New processing techniques must therefore be not only economically feasible, but politically acceptable, even when the demands of "conservationists" and ?environmentalists? are unreasonable. A new generation of processing techniques has come into being, which do not rely on an expensive sintering stage, nor use metallurgical coke, which is difficult to make without serious pollution. They utilise intense reactors, conveying materials from one stage to the next preferably within an enclosed space, obviating fume emissions, and avoiding heat losses as far as possible. The acceptability of the new techniques? is increased if lowgrade or complex materials can be treated, along with a variety of returns and wastes. In addition, a good selling and servicing organisation seems to be as important as good process technology in determining the spread of the new processes. In the field of pyrometallurgical refining the need is for more general application of several recently developed techniques rather than a search for alternatives to the existing process technologies. However, there is a need for fundamental work investigating the phenomenon of oxygen anode overvoltage in the electrolytic zinc process, in order to make progress in the further reduction of energy consumption. There is also scope for further development and application of vacuum distillation to up-grade thermally produced zinc. This paper presents a personal view of processes which should be developed to overcome existing problems, as we approach the turn of the century,

Jan 1, 1990

Large GDP increases in the Pacific Rim countries have been accompanied by similarly large increases in demand for oil products. In the case of residual fuels, this demand has been tempered by the substitution of other energy products such as coal or gas. In the region's developing and newly industrialised nations, it has not been possible to make the very large investments in infrastructure which allow other energy sources to be used for transportation. As a result, GDP growth has been mirrored in the demand growth for automotive fuels. Other non-substitutable products such as lubricants have also benefitted by the region's GDP growth.   The combination of a number of years of sustained growth, coupled with increasing quality requirements is now stretching the upgrading capacity of the region's refineries. IT, as seems likely, the region continues to enjoy a high GDP growth rate, then this will be accompanied by increasing reliance on finished products coming out of the Middle East.   The owners of the most simple form of refinery in which crude is simply distilled and the naphtha reformed into petrol will face major capital investments. If they decide not to bear this cost, they will face increasing problems in selling their surplus residual fuel oil at an economic price. Quality will become an increasingly important issue. Not only in the well publicised areas such as unleaded petrol, but also for products such as lubricants which play a major role in the efficiency of modem equipment. Quality of service such as hours of opening, ease of access, and service station facilities will also become increasingly important as the oil companies use these to attract customers and gain brand differentiation.

Jan 1, 1990

Large GDP increases in the Pacific Rim countries have been accompanied by similarly large increases in demand for oil products. In the case of residual fuels, this demand has been tempered by the substitution of other energy products such as coal or gas.In the region's developing and newly industrialised nations, it has not been possible to make the very large investements in infrastructure which allow other energy sources to be used for transportation. As a result, GDP growth has been mirrored in the demand growth for automotive fuels. Other non-sustitutable products such as lubricants have also benefitted by the region's GDP growth.The combination of a number of years of sustained growth, coupled with increasing quality requirements is now stretching the upgrading capacity of the region's refineries. If, as seems likely, the region continues to enjoy a high GDP growth rate, then this will be accompanied by increasing reliance on finished products coming out of the Middle East. The owners of the most simple form of refinery in which crude is simply distilled and the naphtha reformed into petrol will face major capital investments. If they decide not to bear this cost, they will face increasing problems in selling their surplus residual fuel oil at an economic price. Quality will become an increasingly important issue. Not only in the well publicised areas such as unleaded petrol, but also for products such as lubricants which play a major role in the efficiency of modem equipment. Quality of service such as hours of opening, ease of access, and service station facilities will also become increasingly important as the oil companies use these to attract customers and gain brand differentiation.

Jan 1, 1990

By Bruce Vandenberg

Two tests were set up as part of the course given by Blasting Analysis International. Both tests were performed using the prototype Velocity of Detonation Recorder (VODR). The prototype has several limitations, which have been rectified for the production units.

Jan 1, 1990

By S. Don Brown

Between 1987 and 1988, the Bureau of Mines studied the mineral resources of the White River National Forest and part of the Arapaho National Forest to appraise the resources present and to determine the types of deposits, and their location, that could be mined economically if sufficient demand and metal prices existed. The study included a comprehensive literature search and a limited amount of field investigation of minerals and mining activity in and near the Forest. This report summarizes a more comprehensive minerals report on the Forests prepared by the Bureau of Mines and was written for a general audience without a background in geology or related fields. Mineral resource information indicates that in the Gore Range-the area between Tennessee Pass and Gilman may contain large base-and precious-metal deposits, and could be the focus of exploration activity in the near future. The Breckenridge mining district was found to have a moderate to high likelihood for mineral exploration and possible development of gold. Recent exploration and minor development work has occurred in several other areas: Montezuma, Kokomo-Tenmile, and Upper Blue River districts, and portions of the Sawatch Range.

Jan 1, 1990

By A. von Röpenack

A forecast of the consequences of our techniques and goods produced, at least a technical assessment will be demanded from us as an industry. The hydrometallurgical winning of zinc is therefore at a crossroads. New processes promise not only better economics, better maintenance of resources and simpler operation, but also more harmony with nature. Pressure leaching promises to eliminate roasting and thus one complete process step. The hematite process solves a difficult and always costly iron problem. HOA opens a possible road to a totally new ,generation of electrolysis. Zinc has a long tradition behind it. Its? importance is as great as ever-. There is still room for new production developments. In my estimation there are good chances for successful new techniques? which will benefit our whole industry. Zinc is a modern and forward-looking metal.

Jan 1, 1990

By G. C. Marino

The performance of the V-Day Mine near Danville, Illinois has been evaluated from data extending over about a 20 year period. The area included in this study involves over 16 acres. Essentially this entire area has progressively subsided. Extensive data has been collected on the geologic and mining conditions, the subsidence movements, as well as on the response of the surface structures to the subsidence. In this paper a detailed summary of the site conditions is given, and the mechanics of progressive failure of the studied room and pillar mine is postulated. These progressive long-term failures of the V-Day are then compared to other similar mine failures in Illinois. Some overall, but tentative, long-term strength evaluations are presented as well.

Jan 1, 1990