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By Ian F. Hughes

"Concepts of an integrated steel plant for sheet products to be built and operating in the year 2000 will be described. The design and operating methodology of this market driven facility will integrate process uniqueness, standardization, manufacturing automation, artificial intelligence and information flow.An integrated steel plant for the year 2000 is defined for this article as one that will be built on a greenfield site and ""started up"" in the year 2000 with a capacity of three million tons per year of flat rolled products ranging from cold rolled and electrical steels to high strength formable steels and a full range of coated products.It may seem that the 21st century and the steel plant we're discussing are far into the future. The startling truth, however, is quite the opposite. As shown in Figure 1, even with accelerated development, a new process on which laboratory development work is begun today might just barely pass through the laboratory phase, pilot plant, and commercial feasibility stages such that it can be considered viable for construction and start up in the year 2000.On that basis, it is very unlikely that this 21st century steel plant will utilize any technology that isn't at least under investigation in the laboratory in 1988. As a result, we recognize that planning and selecting the facilities for this plant is, in fact, a pragmatic rather than futuristic process, and that its main value is in providing a bridge to longer-term predictions."

Jan 1, 1988

By L. Crocker

The Bureau of Mines investigated processes for recovering a marketable lithium product from the montmorillonite-type clays of the McDermitt caldera. The clay deposit, located on the Nevada-Oregon border, is estimated to contain over 3 million short tons of lithium. Limestone-gypsum roasting and selective chlorination proved most successful for extracting lithium from the clays; 80-pct Li recovery was achieved using either technique. With both processes, lithium silicate in the clay was converted to a water-soluble compound-either lithium sulfate or lithium chloride. The lithium was then recovered as a carbonate by water leaching the calcine, concentrating the leach solution by evaporation, and precipitating the lithium with soda ash. The operating costs for the limestone-gypsum roast process were estimated at $2.02/lb Li2C03; selective chlorination operating costs were estimated at $3.85/1b Li2C03. The current selling price of Li2C03 is about $1.50/lb. A detailed flowsheet, material balance, and process evaluation are presented for the limestone-gypsum roast process. In addition, lithium reserves and resources are discussed and the McDermitt clays are described.

Jan 1, 1988

By J. Douglas Causey

In 1987, at the request of the Bureau of Land Management, the U.S. Bureau of Mines studied a part of the 21,296-acre Million Hills Wilderness Study Area (NV-050-233) in order to evaluate its identified mineral resources. The study area is located in Clark County, NV, about 46 miles south of Mesquite, NV. The area is on the east edge of the Gold Butte mining district and has had minor production of copper and zinc from the Azure Ridge mine in the early 1900's. Assessment work was being done on the Esperanta claims, which covers the mine workings, in March 1987.

Jan 1, 1988

By E. Chin

The domination of Bangladesh's mineral industry by natural gas was in for some possibly significant changes. A modest flow of crude oil was struck in a gas development well in the northeastern corner of the country. This was the first commercial flow of crude oil in Bangladesh. All crude oil was being imported, which cost a significant proportion of the nation's foreign exchange earnings. The development of an oilfield producing only a few thousand barrels per day would be a welcome help to the economy. Additional exploration at a 1985 coal discovery in the northwest indicated a considerable reserve of good-quality coal at a depth suitable for mining. If the coal is mined, it would be a boon to the local economy because natural gas was not available in the area.

Jan 1, 1988

By Joan Weinberg

Real output expanded at a 3.0% rate worldwide in 1987, a slightly lower pace than the 3.2% rate in 1986. The decline was accounted for largely by slower growth in the U.S.S.R. and the East European countries, as well as in the developing countries (table 1). According to the International Monetary Fund, output of industrial countries output grew 3.1% and rose most strongly in Japan, the United Kingdom, and Canada (table 2). U.S. economic growth remained at 2.9%, the same as in 1986. Consumer and government spending declined in industrial countries, while gross fixed investment: rent increased. This increase in fixed investment expenditures could be attributed partly to lagged results of some 1986 developments: the fall in oil prices, declining interest rates, and exchange rate changes. The U.S. budget deficit, as well as the large external deficits and surpluses among major industrial countries, hindered further growth .2 A report from the Organization for Economic Cooperation and Development (OECD) indicates that the impact of the October stock market crash was short-lived because it hit economies that were growing strongly, anyway.3 The growth of output in the developing countries slowed in 1987; however, output declined in the fuel-exporting developing countries. These countries have been adversely affected by weakness in oil prices and the depreciation of the U.S. dollar. The weighted average of inflation rates in industrial countries--as measured by the [ ] GNP deflator, was 2.9% in 1987, down from 3.4% in 1986. Prices rose 3.0% in the United States, up from 2.6% the previous year. Inflation for 1988 is expected to remain slightly higher in the United States than in Japan and the Federal Republic of Germany because of recent exchange rates changes and the elimination of slack productive capacity and labor in the U.S. economy. Prices in developing countries as a whole rose more than 10 percentage points in 1987. Higher import prices, caused by

Jan 1, 1988

By Julius G. Chang

Against the receding background of the October stock market crash and the December overhang of inventories, the economy began with a shaky start in 1988. As 1988 began, the Administration's estimate of real growth for 1988 had just been reduced from 3.5% to 2.4% and economists and other ob-servers were concerned that the expansion that was 5 years old might be near the end and that a recession might be around the corner. The ensuing moderately strong economic activity, however, belied all the negative signals that were evident earlier, and the real GNP continued to grow at an estimated 2.3% annual rate during the first quarter of 1988, extending the ongoing recovery into the sixth year (table 1.). The relatively accommodative policy of the Federal Reserve Board (the discount rate was cut by 0.25% in January), a strong performance by the export sector, and the revival of consumer spending were major forces underlying the economic strength. But as the quarter drew to a close, signs of tight capacity utilizations were apparent in many of the export and capital goods sectors, including textile, chemical, plastic, metal, and machinery. Employment was at a record high level while the unemployment rate was close to a historical low. Prices were rising at a faster pace than those of 1987, and the dollar resumed its slide after a brief recovery in January and February. These factors gave rise to the fears of higher inflation. Long-term interest rates increased, casting a pall over the prospect of a robust growth for the rest of the year.

Jan 1, 1988

This paper examines the cost and economic consequences of varying a number of key factors in the course of developing and operating new underground longwall coal mines with both shallow and deep cover in New South Wales. The economics of the project are assessed for the first 20 years of mine life using the discounted cash flow method with produc- tion and selling price being determined to provide break even costs for a range of minimum rates of return.

Jan 1, 1988

By M. Rieber

In July 1985, as the U.S. copper industry contracted and the Mexican industry expanded, a trans border pollution agreement was signed which included smelter air pollution control in the "Gray Triangle": Cananea, Nacozari and Douglas. Since then the Douglas smelter has been closed, a year earlier than initially required; though its new smelter is operating, S02 collection and acid disposal at Nacozari is yet to come; and the Cananea smelter has been un-touched. Nacozari and Cananea copper mining have expanded while a reduced U.S. copper industry has rationalized to a point of fragile profitability. As a paradigm of U.S. copper competitiveness, this paper attempts to explain the differential fortunes of copper in the two countries, to project the future of the smelter agreement as a function of acid disposal, and to consider the consequences of the politicized application of smelter pollution control in Arizona.

Jan 1, 1988

By Cao rong-jiang, Tang Xin-he

"In ordinary manufacture process of tungsten powder, a preferable intermediate product used is ammonium paratungstate (APT). The particle size of tungten powder made from it through W2OO58 is larger than 1. 0 um. In order to obtain ultrafine tungsten powder with narrow size distribution, a new type of tungstate, hydraziniull tungstate, was studied. Its formula is 5(N2H5)2O·12 WO.s , with tetragonal crystal structure of a=5.821 , c=18. 468. Three methods for preparing hydrazinium tungstate (ART) were set up and ART can be produced by current industrial APT process with little modification of operation and without any change of equipment.Under certain PH and operation condition of the solution from which ART was produced, an autoreduction of tungsten occured, which produced a lower valency tungstate with blue color when ART was heated at different temperatures, in N atmosphere, tungsten bronze, tetragonal W0290 and W02.7E could be obtained respectively. They all have the superiorities, in the production of tungsten powder, of superfine size and narrow size distribution [average size of 0.5um or even smaller.The rate of autoreduction of ART is very fast at elevated temperature. The reduction reaction, which gaves tetragonal WO290, could be handled smoothly without explosion. To research their behaviors at autoreduction temperatures and the products of autoreduction will be new advances of tungsten chemistry and may also serve tungsten industry with new processes and materials."

Jan 1, 1988

By Peter H. Grimley

It is important to realize that lending institutions have a very different risk-profile from that of an equity investor. For bank financing, a feasibility study must address the concerns of the lender and these can be summarized under the four 'PI Is: Project, Performance, Product and People. Generally, feasibility studies focus on the measurable project risks associated with a new venture, but frequently insufficient emphasis is placed on key risk areas such as ore grade and metallurgical recovery. Before accepting full or even partial non-recourse risk, financial institutions will demand evidence that the project was constructed according to specifications and within budget and that its Performance within agreed limits has been demonstrated. Product risk should be discussed in detail in any feasibility study. For industrial minerals, penetration of the market can be critical to success and for commodities with volatile prices, the sensitivity of the cash flow to a range of prices should be carried out. Methods of reducing price risk such as long term contracts or, in the case of gold, forward selling should be carefully evaluated. The People risk is rarely discussed in feasibility studies, but can be a key element. Few projects turn out to be faithful copies of the study and the ability of the operator to identify

Jan 1, 1988

By John B. Bennett

In this report estimates are presented of the impact of the passage of five recently proposed "acid rain" bills on electric utility costs for coal-burning utilities servicing the domestic aluminum smelting industry, and on the costs of production for affected aluminum smelters. As aluminum smelting is an energy-intensive industry, domestic increases in electricity prices could affect the industry's competitiveness. Energy costs in U.S. aluminum smelting are compared to aluminum smelting energy costs in the rest-of-the-world. Governmental policies affecting these energy costs are discussed.

Jan 1, 1988

By C. S. Simons

This paper presents a review of the extractive processes used in the production of nickel, with emphasis on developments since the beginning of the Second World War. Attention is given to the factors, many outside the nickel industry itself, which determined the direction of process research and strongly influenced the ultimate commitments to industrialize the resulting developments. An example of such a factor is the sudden surge in demand, far exceeding the then available nickel production capacity, that was caused by the advent of World War II; the result was the first serious consideration ever given to low- grade laterites as a viable source of primary nickel. Other factors discussed include such items as process development in the extraction of other metals - particularly copper; the availability of increasingly sophisticated materials of const- ruction; the advent of the "environmentalist" and related political developments; the massive escalation in the price of energy - particularly oil. The paper concludes with an attempt to forecast the nature of the most effective nickel process of the future, based on extrapolation from the economic and political situation that exists today.

Jan 1, 1988

By D. A. Newman

The accurate prediction of mine profitability is essential for success in the present minerals market as is the ability to quantify the influence/of variations in revenues and costs on cash flow. A menu based spreadsheet template has been developed to determine annual cash flow, maintain depreciation schedules, and estimate labor and operating expenses. Sensitivity analyses may be conducted to determine the effect of productivity upon mining costs and the effect of selling price escalation upon rate of return. The advantage of this approach is that it can be used by a wide variety of professionals without extensive computer experience.

Jan 1, 1988

By Patricia R. Devine

This report expands an earlier study by Jack Faucett Associates (OFR #40-88) of the same title. Both reports are based upon an interindustry analysis from 1963 through 1982, during which time U.S. metals consumption and production did not keep pace with economic growth. The report discusses three sources of change: technological change, economic growth, and composition of final demand, as well as the relative importance of the individual components of final demand for metals. The results show investment and personal consumption to be the most metal-intensive components of final demand, and technological change to be the major cause of decline in consumption growth during the study period. Technology change is defined as alterations in production processes resulting in more or less consumption of metal per unit of output, often because of material substitutions and design changes. A trade analysis shows the significance of import growth, particularly indirect imports (metal contained in imported goods) as a factor contributing to the reduced growth rate of domestic metal production. The effect of import growth is partially offset by indirect export growth, suggesting that continued increase of all U.S. exports can have a strong effect in reducing the negative trade balance in metals.

Jan 1, 1988

By Thomas J. Peters

In 1987, at the request of the U.S. Bureau of Land Management, the U.S. Bureau of Mines studied the 15,174-acre Sleeping Giant study area, including the 6,112-acre Wilderness Study Area (MT-075-111), in order to evaluate its identified mineral resources. The study area is located in Lewis and Clark County, MT, about 30 miles north of Helena. Sleeping Giant Mountain trends west-northwest from the Missouri to the eastern crest of Little Prickly Pear Canyon (the route of Interstate 15), and has several summits over 6,000 ft. Geologically, the area is in the Disturbed Belt, and a large block of Middle Precambrian metasedimentary siltstone and underlying shale has been thrust northeast over younger, sedimentdry volcanic and intrusive rocks.

Jan 1, 1988

By P. G. Bennett

The Bureau of Mines developed a process using ion exchange to recover cobalt from spent copper leach solutions. A preliminary economic evaluation of the process indicated that about one-third of the capital cost was attributed to the total resin inventory, and one-third of the operating cost was required for reagents to remove iron from the ion-exchange eluates. An agitated Pachuca elution system was investigated in place of a fixed-bed elution system. The Pachuca system reduced the resin inventory by 27 pet when compared with the fixed-bed elution system. Processing fresh spent copper leach solution reduced the resin inventory by 20 pct and resin iron loading by 80 pct. Reagent requirements for removing iron from the eluates were decreased because less iron was extracted. The Pachuca system, along with processing fresh spent copper leach solution, reduced the total resin inventory by 47 pct. A revised cost evaluation of the cobalt recovery process was obtained to determine the effects of these process modifIcations. The estimated total capital cost for a plant processing 10,000 gpm of spent copper leach solution containing 26 ppm Co was $23.1 million. With credits for nickel, zinc, and copper byproducts, the estimated net operating cost was $5.10/lb of cobalt.

Jan 1, 1988

By Choon Kooi Quan

Water availability is essential for mining and minerals processing. To provide government and industry with recent data for water use planning and management, the Bureau of Mines canvassed a number of U.S. producers of nonfuel minerals to determine their water use in 1984. Data were analyzed and compared with previously published data in order to examine historical trends in water utilization in the nonfuel minerals industry and to estimate water requirements in the year 2000. Total water use in the domestic nonfuel minerals industry during 1984 was estimated at 2,267 billion gal, of which 571 billion gal was new water and 1,696 billion gal recirculated water. The largest users of water were the phosphate rock, iron ore, copper, sand and gravel, and crushed stone industries, together accounting for almost 90% of total used. More than one-half of all water was used in Florida, Michigan, and Minnesota. In the year 2000, total water use will amount to an estimated 2,679 billion gal, of which 810 billion gal will be new water and 1,869 billion gal recirculated water. Most of this water would be used in producing the foregoing suite of minerals,

Jan 1, 1988

By D. E. Macdonald

"Approximately 2.0 million tonnes of phosphate rock is imported from the U.S. to Alberta annually and is used in the production of agricultural fertilizers. No phosphate rock is presently mined in Canada, although sources of igneous phosphate have been mined in the past. Sedimentary phosphate rock is found in nine geological units within the Cordilleran Foothills and Front Ranges region of Alberta. The Devonian-Mississippian Exshaw Formation, Permo-Pennsylvanian Rocky Mountain Supergroup, and the Jurassic Fernie Formation have the best potential f or future development. Most of the phosphate rock in Alberta is of low grade and lies within restricted land use areas. The best over-all resource potential lies in the Fernie basin area of southeastern British Columbia, in the Fernie Formation. The possibility of deep phosphate rock deposits in the plains region should be examined.Phosphate rock is mined in Idaho, Utah, Montana and Florida, and is shipped to Canadian fertilizer plants for processing. Raw phosphate rock is acidified, usually with sulphuric acid, by a wet process. Varying amounts of ammonia are added, and the fertilizer is pelletized. Future research, in western Canada, is needed in the beneficiating of low-grade ores and in the area of in situ mining. At the present time, phosphate rock sells for around US$50Itonne, and Alberta fertilizer companies probably pay in the range of C$7D-$85Itonne for U.S. phosphate rock delivered to the plant. Environmental concerns about phosphate rock processing are centred around gypsum tailing ponds, and radioactive wastes.U.S. supplies of phosphate rock are secure until the year 2000; however, by this time, the richer deposits in the U.S. may be exhausted. Alternate deposits, such as the ones in Alberta and British Columbia, might then be considered. Phosphate byproducts, such as uranium, vanadium, fluorine and rare earth elements, may help in making the processing of low-grade Canadian phosphates economically feasible."

Jan 1, 1988

By Marilyn Biviano

This analysis was conducted in response to concerns raised by the Chairman of the Energy and Commerce Committee of the House of Representatives regarding the potential impacts on automobile production, GNP and employment resulting from embargoing south African supplies of the platinum-group metals, platinum and rhodium. This analysis should be considered an addendum to the recently released study in which the direct economic costs I of a U.S. embargo on selected South African strategic and critical materials are estimated. The estimated GNP and employment impacts result when a mineral shortage reduces domestic industrial production and are in addition to the direct costs estimated in the earlier study. The direct cost to this nation resulting from a decision to embargo six south African strategic and critical minerals was estimated at $1.85 billion per year during the 1988-1992 time frame of the study. The estimated direct costs include the costs to U.S. consumers resulting from higher strategic mineral prices, lower mineral consumption, and the cost of developing higher cost domestic mineral resources. A large proportion of the costs result from the shortage of the two metals: platinum and rhodium. The average direct annual cost of embargoing is estimated at about $1.4 billion for platinum and $384 million for rhodium.2

Jan 1, 1988

By R. J. Sweigard, R. V. Ramani

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis, it was determined that the profitability of a project is most sensitive to delays in production, particularly if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1988