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By W. J. S. Craigen, G. E. Wittur

"In the context of today's continuously changing world, there are many factors which must be considered when attempting to assess the ability of Canada's primary copper producers to remain competitive in the face of increasing competition in world markets. In this paper, we have attempted to document those factors that will have the greatest impact on the future viability of Canada's copper industry, and to suggest possible strategies to fully utilize whatever inherent advantages Canada may have to enhance its competitive position. Technological factors related to the efficiency of precious and by-product metals recovery, energy type and utilization efficiency, production and sale of sulphur by-products, and control of 502 emissions are given high priority in this evaluation of Canada's future needs to remain competitive. Particular emphasis is placed on assessing the relative viability of hydrometallurgical versus pyrometallurgical processes for copper; to address uniquely Canadian conditions and problems. Due consideration is also given to the economic incentives required to allow Canada's copper producers to compete under anticipated world market conditions and to facilitate the continued development of Canada's copper resources. IntroductionWhen we try to assess the viability or competitiveness of any industry the bottom line is still usually, ""Can we produce a pound of product cheaper than the competition?"" Canada's copper industry is certainly no exception. However, as with most resource-based industries dependent upon exports, there are many factors which have a significant effect on the cost components which make up the total cost of producing and selling a pound of copper. It is desirable therefore to have as clear a picture as possible of the cost components, the major factors affecting them, and how they compare with the competition, particularly the third-world copper producers.In this paper we have attempted to provide a brief outlook for world copper markets and a brief overview of Canada's competitive position. We have also attempted to document those factors which will have the greatest impact on future production costs, and have suggested possible initiatives to utilize inherent Canadian advantages to enhance our competitive position. Special emphasis has been placed on technological initiatives designed to make full use of these ""advantages"", to develop superior beneficiation and extraction! refining technologies. Major factors considered in the present study are:"

Jan 1, 1986

By Douglas F. Stevenson

Your committee doesn't assign any easy topics to us speakers. How do you define "successful" in what is essentially a losing game? I am reminded of the fellow who returned from a one-week vacation in Las Vegas, and proudly stated, "I only lost $150." To him, that was "success." I am afraid that workers' compensation is a losing game for employers, too, and success has to be defined in terms of how much or how little is lost. We have no chance of producing a profit for our employer. We will narrow down to some suggestions about conducting a workers' compensation program at the plant level, but first I want to discuss the general legal, social and legislative climate in which your plant program operates. Workers' compensation is a statutory program with its general parameters established by the legislature. These parameters are then amplified by the boards and commissions established to administer workers' compensation. What influences the legislature and the boards and commissions as they establish the framework in which we must function?

Jan 1, 1986

By J. E. Lema

America's bulk commodity transportation systems have taken on a new look in the 1970's and 1980's. Railroad systems, barge lines providing inland and intra- coastal waterway transportation, and Great Lakes carriers have undergone substantial changes through mergers and acquisitions, consolidations of ownership and control, and construction of modern intermodal transportation facilities linking railroads and water carriers. The new look has generated some concerns and opportunities with regard to producers and shippers of bulk commodities which are characterized by the necessity of moving large quantities of heavy materials long distances. Clearly such transportation requirements call for efficient railroad and water carrier services. Shippers of commodities like coal, grain, .chemicals, minerals, ores, forest products, petroleum products, and heavy manufactured goods find reductions in transportation competition lead to concerns that rates charged by carriers will not be sufficiently constrained by market forces. At the same time, new policies on contracting for railroad services can lead to greater efficiencies, a rewarding opportunity for carriers which should be shared with shippers and consumers of bulk commodities. Then, of course, there's a related problem that in the absence of effective competition, the benefits of increased carrier efficiency will not be passed on, in part, to shippers and consumers, causing losses in markets for producers.

Jan 1, 1986

By P. B. Queneau, Peter V. Avotins, Lauch F. Farris

"The Lang Bay germanium property is a carbonaceous sandstone deposit outcropping near the Pacific coast, 100 km north of Vancouver. The germanium-bearing seams are up to 5 m thick. Where one such seam outcrops, it averages 50 to 60 g Ge/tonne. Drill core analyses have shown considerably greater concentrations of germanium at depth. Additional drilling to establish continuity and grade of the germanium-b earing strata is scheduled for 1986. The germanium occurs in association with lignite, which makes up 1 to 2% of the seam. American Cyanamid Company engineers have developed a proprietary flotation reagent effective for concentrating the germanium rich vitrain portion of the Lang Bay lignite. Ongoing laboratory studies are developing procedures for further upgrading and refining of this germanium. This paper outlines progress made by Fargo Oil Corporation on Lang Bay geology, reserve estimation, mine planning, ore dressing, refining, and economic evaluation.IntroductionIn 1871, Mendeleyev specula ted on the properties of a ""missing"" element between silico n and tin on the periodic table. The discovery of germanium fifteen years later proved the Mendeleyev predictions to be remarkably accurate. Almo half a century later, the pioneering work of McCutcheon of Eagle-Picher led to production of germanium dioxide from Oklahoma zinc smelting residues. Demand for the element surged due to development of the Ge02 diode rectifier during World War II, followed by development of the transistor in 1947. The chief commercial sources for germanium during the following two decades were the Cu-Zn mines in the Congo and the Zn-Cu-Pb mines of Tsumeb in Southwest Africa. The germanium was chemically combined in complex Cu-Fe sulphides (germanite and renierite), from which the element was recovered either by leaching the selectively roasted sulphide, or by direct fuming of GeS(I). Although these deposits have reportedly been depleted (2), new deposits of renierite have been discovered in Zaire. Alternative sources of germanium are therefore being sought worldwide for use in infrared optics, semiconductors, fibre optics, and catalysts. One such source is germanium-rich coal (2)."

Jan 1, 1986

By B. G. Russell

A wide range of minerals is found within the Republic of South Africa, many of which are exploited to a greater extent than in similar deposits found elsewhere. It is often asked whether this is atributed to the high grade of the ores encountered in this country, or whether such factors as fiscal and Infrastructural incentives create an economic climate that has en bled the mining industry to successfully extract and market minerals at a profit. This paper views South Africa's mineral resources in a regional and global context In an attempt to place the country's geological wealth in perspective. It represents the author's own Views, and not necessarily those of the Department of Mine al and Energy Affairs.

Jan 1, 1986

By D. R. Wilburn

The Bureau of Mines investigated the potential availability of magnesium from 45 properties in market economy countries (MEC's). The 38 significant deposits evaluated have demonstrated resources of approximately 29 billion short tons (st) magnesium-bearing material containing 416 million short tons (MMst) magnesium oxide (MgO). Using data it gathered, the Bureau determined the magnesium production potential for each property including a 15-pct rate of return on invested capital. Total and annual availability assessments for the next 30 yr were completed for magnesium (Mg) metal, deadburned MgO, and caustic calcined MgO. At a January 1984 market price of $1.34/Ib Mg metal, the properties evaluated could economically produce an estimated 13 MMst Mg metal. At a market price of $400/st nonmetal magnesium product, these properties could economically produce 109 MMst deadburned MgO and 43 MMst caustic MgO. These properties could produce approximately 301,000 st Mg metal, 3.0 MMst deadburned MgO, and 430,000 st caustic MgO annually at current full production levels and 1984 market prices until at least the year 2000. Total 1984 MEC production assessed in this study was 153,000 st Mg metal and 4.3 MMst nonmetallic MgO products.

Jan 1, 1986

By R. M. Rowe, T. E. Irwin

A flowsheet was developed for upgrading Climax tin concentrate to about 45 percent Sn. Bench-scale test work conducted at AMAX Extractive Research and Development, Inc., was used to design a multiple-stage tin- processing flowsheet which included screening, high-intensity magnetic separation, and high- tension (electric- static) separation. Formal engineering and plant installation was accomplished in-house by Climax mill personnel. The successful start-up operation of the facility was the joint effort of the AMAX R&D and Climax-mill staffs.

Jan 1, 1986

By K. Schimann, H. D. Knipping, J. P. Fouques

"RESUMELe gisement d 'uranium de Cigar Lake, dans la région de l'Athabasca au nord du Saskatchewan, fut découvert en mai 1981 par Cogema Canada Ltée, opérant pour Ie compte de la ""Waterbury Lake Joint Venture"".Le corps minéralisé. qui est dépourvu de toute expression directe en surface, est situé a la discordance entre les met sédiments du wottaston Group (Protérozoïque inférieur ou Aphébien) et les grès de l 'Athabasca (Protérozoïque moyen ou Hélikien), à une profondeur de 410 a450 m.Fin 1984, Ie gisement était reconnu par 105 sondages minéralisés repartis sur une longueur de 1800 m, pour une largeur comprise entre 25 et 105 m. 11 se présente sous forme d’une lentille aplatie de 5 a30 m de puissance, et montre une remarquable continuité d'ensemble. Une ride ou bombement topographique de la discordance est associée au gisement surtoute sa longueur.A l'échelle régionale, le corps minéralisé à est associe à un corridor structural d’orientation est-ouest, a l'intérieur duquel des facies particuliers aténdance blast mylonitique sont développes dans les formations métapolitiques agraphite du socle métamorphique. Il est entouré par un halo d'altération très important, caractériser Ie développement de minéraux argileux alumino-magnesiens (illite-chlorite).La minéralisation est située, pour la plus grande part, dans les grès d'Athabasca, et se compose essentiellement d'uraninite et de sulfo-arseniures de nickel et de cobalt,De nombreux levés géochimiques et géophysiques ont été effectues dans la région de Cigar Lake. Aucune anomalie ne peut être associée directement au corps minéralise, mais la combinaison des données en provenance de plusieurs sources s’est révélée fort utile au niveau de l’interprétation géologique régionale et de la définition des cibles de sondages a l'intérieur des zones reconnues favorables.Le gisement de Cigar Lake présente de nombreuses analogies avec plusieurs des gites classiques de la région de l'Athabasca; il est caractérise en particulier par l'intensité des phénomènes d’altération et la présence de minéralisations extrêmementriches.En 1984, les réserves géologiques globales estimées par géostatistique sur I ‘amas minéralise principal s 'élevaient a 110 000 tonnes d'uranium, aune teneur moyenne de 12.2%, avec une précision de 25% à l'intervalle de confiance de 95%.ABSTRACTThe Cigar Lake uranium deposit, in the Athabasca area of North Saskatchewan, was discovered in May 1981 by Cogema Canada LId., as operator of the Waterbury Lake Joint Venture. The deposit, which is devoid of direct surface expression, is located at the unconformity between the Lower Proterozoic (Aphebian) Wollaston Group meta-sediments and the Middle Proterozoic (Helikian) Athabasca sands tone, at a depth of 410 m to 450 m below surf ace.AI the end of 1984, the deposit had been defined by 105 mineralized holes over a length of 1800 m and a width of between 25 m and 105 m. It has the shape of a flat-lying lens 5 m to 30 m thick and shows a remarkable longitudinal and latera continuity from the information obtained to date. A well-defined bulge of the unconformity underlies the mineralized zone over its entire length.The deposit appears to be controlled by an east-west-trending structure within which a particular rock facies (""augen gneiss"") has developed in the graphitic metapelites of the Wollaston Group. It is surrounded by a strong alteration halo affecting both sandstone and basement, characterized by extensive development of Mg-A I rich clay minerals (illite-chlorite).The mineralization is hosted principally by the Athabasca sandstone, and consists mainly of uraninite and sulfo-arsenides of nickel and cobalt.Numerous geochemical and geophysical surveys have been carried out in the Cigar Lake area, and no specific geochemical or geophysical anomaly can be directly associated with the mineralized body, although there may be locally a good coincidence. However, a combination of several methods proved extre"

Jan 1, 1986

By M. E. Grimes

"The future of the uranium industry in Canada during the next twenty years will be very dependent on political and social issues on a world scale. Technology, as such, will tend to be of lesser importance. Nonetheless, some technical changes can be anticipated.This paper deals with milling of uranium ore, leaving further processing and nuclear power production to specialists in these fields. An attempt has been made to look at uranium production technology in Canada in relation to that in other countries, and to draw interference regarding future changes that seem probable in the Canadian context. In particular, recent advances in mill equipment are considered.The chemistry of uranium and its relatively low concentration in most ores has been responsible for a completely hydrometallurgical approach to mill processing, and this should continue. In spite of little commercial success to date, pre-concentration of lower grade ores will be researched further in order that these ores can compete with higher grade deposits in Canada.The discovery of the relatively high-grade ores of the Athabasksa region will undoubtedly influence choice of mill processes and equipment. The potential effect on innovations is discussed"

Jan 1, 1986

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

International tenders for contract mining opportunities require the Contractor to make an assessment of risk for an operation with a life span of up to twenty-five years usually based on data made available by the Client. This paper seeks to address how the Contractor assesses the data and quantifies the risks associated with the project. The areas of risk are common to most projects, but in the--Lontractor's case, risk assessment is carried out on the Client's data base and within a compressed time frame of usually less than six months. Incorporation of that risk assessment into the contract documentation is also discussed. Practical examples are given in a number of areas.

Jan 1, 1986

By Lawrence S. O’Rourke

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.

Jan 1, 1986

By Ted Schwinden

It's my pleasure to welcome the Rocky Mountain Coal Institute to Montana. Now that you've ended a 74 year history of meeting outside our borders, I hope you'll be back more often. Even if I can't convince you to come back before 2060, when another 74 years will be up, I'm confident the Kalispell and Flathead Lake area will do the persuading for me. In recent weeks, I've made a number of speeches around the state pointing out just how wrong the revenue projections in Montana's state government made in April of '85 were when we came to April of '86. Since the middle of this month, Montana's legislators have been in Helena struggling to balance a state budget that, by the end of fiscal year '87, threatened to be some $88 million in the red. Other western states reliant on natural resource and agricultural economies have found themselves caught in the same deflationary spiral. The "window of opportunity" I proposed and the 1985 Montana Legislature passed, couldn't have been opened at a more difficult time. What was envisioned as an incentive to expand Montana's coal production, and our tax base, ran aground on low oil prices and excess hydroelectric power. De- spite the one-third severance tax rebate offered on new coal production, year-to-date figures published in the June 2nd Coal Week show that production in Montana is down almost 10 per- cent from last year. Again, we're not alone. Production in Wyoming is down 8 percent and in North Dakota, it has dropped 13 percent. An over- all 3 percent production decline in western states looks even worse when contrasted against a 12 percent increase for your eastern competitors. Montana's "window of opportunity" had the potential to be a significant signal to your industry. That potential was quickly tempered by the inability of Arab nations to stabilize world energy prices. If any of us had forgotten, the last twelve months have reminded western states that the well-being of our natural resource economies has a tremendous impact on the ability of all levels of government to provide services. The past year has also driven home that in the world of business and in the business of the world, risk-taking is still the name of the game. The Western Governors recognize the problems facing this industry - and our states - and we're prepared to fight for the future of western coal. In the past two decades, legitimate environmental concerns have created a vast body of new legislation affecting coal producers. The industry has been required to meet new reclamation standards - tough regulations relating to ground water, air quality and wildlife habitat. To the industry's credit, coal companies have hired professionals with the technical know-how to do it right. Rather than considering reclamation laws to be an unreasonable burden, today's coal company is more likely to view its reclamation efforts as a source of corporate pride. In a sense, the industry and the agencies which regulate it have matured together . . . although at times OSM is reluctant to admit that either of us capable of or willing to play by the rules. Certainly some abuses exist and OSM's oversight has been helpful in ensuring parity between those states willing to comply and those that would rather defy federal law. Nonetheless, penalizing the more modem and responsible western coal industry for abuses that occur elsewhere is both unfair and counterproductive. Federal penalties range from "cruel and unusual" reporting requirements to the proposed electricity tax that would effectively force utilities and ratepayers who have already met the sulphur emission standards to subsidize those who have dodged their cleanup responsibilities. As a member of the Alliance for Acid Rain Control, I have joined corporate leaders, academicians, environmental representa-

Jan 1, 1986

By Denis Yaychuk, Gary Billingsley

The economic eva luation of a mineral property or mining venture should include the quantification of ri k as part of the analy is. The re ults of such an analysis provide the decision-makers not only with the most likely financial outcome and the probability of achieving that or any other outcome. but al o with a ranki ng of the relative impact of all the ri sk factors. These type of resu lts offer more complete information for investment and technical deci ions than the traditional cash flow/ ensitivity analysis. In addi tion. by attempting to quantify ri sk. the personnel providing the va ri able input are forced to take a much clo e r look at the data involved, and are fo rced to work together. the reby increa ing substantially the awa reness of the impact their work and others· work has on th e outcome of the analysis.

Jan 1, 1986

By David Thomas, Charles Harper, Brian Watters

The Star-Waddy Lakes area lies withjn the northeasterly-trending early- to mjd-Proterozoic volcanoseilimentary-pl utoruc belt referred to as the La Range Domllin. In the area investigated the domajn is composed of the Central Metavolcaruc Belt which is bordered by metasedimentary belts of the Crew Lake and MacLean Lake Belts to the northwest and southeast respectively. The boundaries between the Central Metavolcanic Belt and the flanking belts are generally marked by prominent zones of shearing. The volcanosed imentary succession is intruded by a variety of ultramafic to felsic plutons which, on the basis of lithology, field relations and geochronology, can be broadly subdivided into three groups or episodes. These are: a) an 'early' (ea. 1866 Ma), possibly subvolcanic, episode marked by composite intrusions ranging from gabbro-diorite to granite, b) an 'intermediate' (ea. 1854 Ma) plutonic event distinguished by more homogeneous felsic intru ions ; and c) a 'later' (ea. 1835 Ma) event characterized by leucocratic quartz-rich grani te intrusions. The La Range Domain has undergone polyphase deformation with a strongly developed northeast-trending structural grain. Large scale folding is manjfested by large regional sy nforms, arcuate and triangular patterns associated with many of the plutons and by tight to isoclinal folds within the adjacent metasedimentary belts. Inhomogeneous strain characterizes much of the Star-Waddy Lakes area. With strain gradients being typically very steep, zones of high strain consisting of zones of extreme extensional fabrics, discrete shearing, as well as broader zones of cataclasis and structural slicing, are often juxtaposed with areas of relatively minimal deformation . Dilation structures tend to favour these zones of highly contrasting strain. Late, brittle fractures, faults and shear zones are widespread and appear to be particularly important as loci for gold mineralization. Metan1orphic mineral assemblages indicate that upper greenschist to middle amphibolite facies conditions were attained. Geological and geochenucal evidence indicates that the Central Metavolcanic Belt evolved in an island arc environment. Metavolcanic rocks from both the Waddy and Star Lakes areas display similar characteristics on variation diagrams (e.g. AFM and the Jensen cation plot) in that the dominant trend is calc-alkaline with some basic to intermediate types having a mildly tholeiitic character. A few samples from the southern end of Lower Waddy lake display komatiitic to basaltic-komatiitic afl'injties. The relatively immobile minor and trace elements (e.g. Ti , Zr, Nb, Y, Cr) provide reliable characterization of the metavolcanics, particularly of the basalts, which have highly distinctive trace element properties. Geochemical patterns for the basalts are similar to those for modem volcanic arc basalts. Low initial 87Sr/86Sr ratios (0.7017 - 0.7019) are consistent with a subduction-related origin for the volcanics. The major plutons have chemical properties typical of volcanic arc granites and are largely calc-alkaline in character, showing little chemical variation from the volcanics.

Jan 1, 1986

By Brian W. Mackenzie

The paper addresses five questions concerning the economic of gold exploration in the western Canadian shield. Can historical footprints be used to project future gold prices for exploration planning? Experience suggests that gold price forecast are too clo ely tied to current market events to provide meaningful guidelines. What range of breakeven gold price will typically be required to ju tify gold exploration in Canada? Minimum price requirements. initially asses ed at $540 to $1080 per ounce, probably lie in the range of $480 to $760 per ounce (expressed in 1985 Canadian dollar). Within Canada, what role do regional conditions and taxation policies play in determining the viability of prospective gold exploration targets? Striking interprovincial differences are found to exist, given the same geological circum tance -Nova Scotia, ew Brunswick, and Quebec rank towards the top in term of motivating exploration, Briti h Columbia provides the least investment incentive, while Saskatchewan and Manitoba place around the middle of the Canadian league. How can minimum acceptable tonnage-grade conditions for gold targets in the western shield be established and, then, constructively applied to provide exploration planning guidelines? Minimum target conditions, realis tically defined in terms of a broad band of doubt, can be used judiciously to help balance the direct costs of uneconomic exploration with the opportunity costs associated with rejecting economic deposits. How does the average cost per ounce of gold discovered in the western shield compare with the overall Canadian experience? Average discovery costs for the we tern shield, apprai ed at $100 per ounce, are shown to compare favourably with the Canada-wide record.

Jan 1, 1986

By Paul D. Tomlingson

Part one of this two-part series covers conceptualizing and developing a maintenance information system. It explains what information is necessary to manage such a system. Next month, part two will discuss using this type of system with administrative information, including error and absentee reports as well as open work files. Introduction There is no doubt that quality, timely, and accurate information can make a solid contribution to maintenance cost reduction objectives. Yet, despite obvious benefits, methods being used to acquire information systems are proving costly, frustrating, and often unsuccessful. Those needing the information are disappointed. Mine managers, hoping to reduce costs with quality information, are instead seeing no system, no savings, and massive spending on information endeavors of questionable benefit. Options Any software vendor will happily sell you his program. Numerous mining organizations, having "gone to the cleaners" themselves, will gladly make their programs available to help cover huge trial and error development costs. Any package can only be a generalization. Any program bought from some other organization must undergo numerous modifications to make it work properly. In the process the initial cost is doubled. Many mining maintenance organizations do not know how to go about the task of conceptualizing, developing, installing, and effectively using a maintenance management information system. Consequently, many have hedged their primary responsibility of specifying what information they want, how they will get it, and how they will use it effectively. Into this void have jumped many who claim they can help. But some may not understand the special information needs of maintenance in the mining industry. By default, the whole scene of maintenance information systems has become confused and in need of clarification. A Starting Point Four broad phases are used to organize the steps by which maintenance acquires an effective maintenance management information system and initiates its use. Conceptualization is an identification of needs, factors that influence development, and an assessment of support for the system. Development is a plan of action for bringing the conceptualized information system to life. Consideration is given to the practical aspects of collecting field data, processing it, and converting it into useful information. Implementation consists of those actions by which the newly developed system is integrated into the organization and put in the hands of its personnel so that its value can be derived. Use addresses the means by which personnel use the information to accomplish maintenance improvement objectives. These phases are preceded by establishing the need for the information system. They are followed by a requirement to measure its success (Fig. 1). Conceptualizing the Information System Responsibilities - The information system user must acquire the system best suited for its use. A step-by-step process is essential to avoid many serious problems than can easily occur. The most important step is to clearly identify its objectives and lay out a course of action to achieve those objectives. The major reason for the failure to achieve information objectives is not carrying out this responsibility. Maintenance cannot delegate the task to data processing. It can obtain technical assistance but it must retain responsibility. Nor can maintenance purchase

Jan 7, 1985

By Wilfred P. Schmoe

Introduction An integrated oil company has two options in approaching strategic planning. It has to decide whether it is in business for the long-term. I state this in all seriousness. Those who help manage public companies have the responsibility of good stewardship of other people's money. We must decide whether continued investment in our basic business will generate a reasonable rate of return. With a world surplus of petroleum production capacity, and continuing downward pressure on prices, this question should be addressed by all oil companies. And a positive answer is not necessarily a foregone conclusion in all cases. The decision should be made based on proven competence in finding and developing petroleum reserves on a cost-competitive basis with other producers, and on a frank analysis of future prospects. This should include a realistic assessment of the projected rate of return on specific investment projects. If a company did not pass these tests, its strategy could take one of four paths. Diversification First, it could diversify. But recent history suggests that oil companies are not good at managing other businesses. Second, it could seek a buyer for its business at the optimum return for its owners. Third, it could sell its assets on a piecemeal basis. And, fourth, it could adopt a longer-range plan of self-liquidation by living off current recoverable reserves. In other words, by not investing in exploration and development, it could maximize short-term profit and pass the money back to shareholders in the form of dividends. The Conoco component of DuPont has a below-average cost of finding petroleum, a good track record of efficient production, and a full plate of projects that pass the test of return-on-investment. In short, Conoco is in business for the long-term. That fact, in itself, determines at least one key element in strategy. This is to extend the life of the petroleum reserve base while at the same time maintaining maximum efficient rates of production to provide a strong cash flow. A company that is able to maintain a strong reserve base will ultimately see the value of those reserves escalate as world oil supplies tighten. Our planners expect this tightening to occur within the next decade as demand grows and production in non-OPEC areas of the world begins to decline. An exploration program tailored to meet the requirements of reserve replacement and current production should have two basic parts. The first is relatively low-risk exploration in proven oil provinces. This is augmented by

Jan 6, 1985

By R. Kent Comann

Introduction This article describes ways to maximize employment potential for those looking for a job in the minerals industry. Advice on the right way to prepare a resume is followed by tips on where and how to look for a job and ways to make the best of an interview. Information on current salaries is also included. RESUME NAME: Give home and college addresses and telephone numbers, ADDRESS: if still in school. Otherwise, give home address and TELEPHONE: telephone plus business telephone number. JOB OBJECTIVE: What do you want to do? EDUCATION: List degree(s), name of college(s), location(s), and date(s) degree(s) received or to be awarded. Do not list your high school but do include postgraduate education, training, or seminars. WORK EXPERIENCE: List your most recent experience first, and the rest in reverse chronological order. Include dates (month and year) and company names. First show the entire time spent with each employer, then list the various jobs (with dates and duties) you may have had with this employer. MILITARY SERVICE: List dates, branch of service, and duties. If you did not serve, delete this section. COLLEGE ACTIVITIES: Show organizations, sports, and offices held. Only list these if you are a graduating senior, otherwise delete this section. PERSONAL DATA: List age, marital status, height, weight (optional), foreign languages spoken, professional memberships, and health (if good or excellent, otherwise do not mention it in the resume). If you prefer a certain location and would not accept a job anywhere else, list the location desired. Otherwise, do not restrict yourself. Also list special skills, hobbies, or interests that will help sell you to the company. Be brief in this section and use good judgement as to what you say. REFERENCES: Furnished on request. Resume Guidelines There are some things to remember when preparing a resume. These include: • Limit your resume to one page, unless you have a lot of experience. Then it should be a maximum of two pages. • Use 8.5 x 11 plain bond paper, white or off-white. Stay away from colored paper, odd size paper, and cute resumes. They are counter-productive. • Make certain your resume is typed professionally. Be sure to check for spelling, grammar, and typographical errors. • Have your resume reproduced by copier or printing shop. Do not use carbon copies. • Keep your sentences and remarks short and punchy. Use action verbs. • Have a good layout that is easy to read, brief, and uncluttered. Allow some white space in your resume. There are also some things you should not do when preparing a resume. These include the following: • Do not include a photograph or mention your religion, race, or sex. • Do not leave gaps of time unaccounted for in your resume. • Do not include your college transcripts with your resume or list all the courses you took in college. • Do not list all the articles you have written. Only list one or two, if appropriate for, say, a research and development job. • Do not include reference letters with your resume. Any good, prospective employer will make telephone reference checks. • Do not use "Curriculum Vitae," use "Resume." • Do not include unnecessary data such as your social security number, passport number, or PE registration number. If you are a PE or EIT, be sure to mention that in your resume. Do not mention US citizenship or US work permit unless you have a foreign education or are not a native US citizen. • Do not include present salary or salary requirements. This will come out in the interview. • Do not use the word "I" in your resume or refer to yourself in the third person. • Do not lie, distort, exaggerate, or editorialize in your resume. • Do not have your resume prepared by an outside resume service. This is unnecessary, costly, and generally not effective.

Jan 2, 1985

By R. J. Roman

Introduction This paper attempts to describe the characteristics of the industrial minerals segment of the minerals industry that make it different from the other segments. Also described are the trends, strengths, and shortcomings in the industrial minerals segment. This may help professionals in the minerals industry determine if there is a place for them in industrial minerals. Industry Overview It is difficult to generalize when describing the industrial minerals industry. Some products, such as cement and potash, are produced exclusively by large, well capitalized and technically sophisticated companies. Others, such as sand and gravel, are generally produced by small, family-owned companies operating on a shoestring budget. Still other products, such as feldspar, are produced by both types of companies. Not only are the companies vastly different, the products and marketing of their products are also different. Industrial mineral products are sold based on their physical characteristics (abrasives), or their chemical characteristics (trona), or both (glass sand). Marketing can be direct by the producing plant, a corporate office handling products form several plants, or through distributors. The geologic, mining, and processing skills needed can be minimal or sophisticated. There can even be large differences in the technical skills needed in two plants producing the same product. One feldspar producer may only need to mine and grind his ore, while another may use a delicate flotation process. One easy generalization is that there are industrial mineral operations in all geographic locations. A second is that industrial minerals offers more opportunities to entrepreneurs than the metals field because of the variety in the sizes and types of operations. Industry Growth Industrial minerals must be considered a mature industry. Consequently, little exciting growth can be expected. Over the past 30 years, industry sales have grown at a rate of 6.2%, compared to a 6.7% growth rate of the GNP (Kliff, 1978). A 3.8% growth rate has been forecast for the remainder of this century. The fortunes of those plants producing a product for local consumption will depend on the prosperity of the local economy. The fortunes of those plants that sell into the national market will depend on their competitiveness in their industry. Major industrial mineral products are shown in Table 1. The first three commodities account for 66% of the industrial minerals market. Typically, deposits of stone, sand and gravel, and the limestone, silica, and clay needed for cement are easy to find and mine. Role of Mining Engineers and Geologists Because a sophisticated techcical knowledge of geology or mining is not required, very few geologists and mining engineers are employed in industrial minerals. Geologists working for these companies function less as geologists than managers and executives dealing with permitting and land acquisition. Likewise, mining is done mostly by open-pit methods. It is generally supervised by an individual experienced in the operation and maintenance of heavy equipment, not a mining engineer trained in rock mechanics or computer methods of mine planning. What of the geologists and mining engineers employed by the industrial minerals industry? Many gained their positions as a result of their experience dealing with the regulatory agencies that control the operations of all mines and mills. Their technical expertise in geology or mining becomes only a side benefit. Finding and mining industrial minerals does not generally require the concentrated efforts of geologists and mining engineers. But the processing of the ores does

Jan 2, 1985