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By D. I. Bleiwas

Bureau of Mines personnel evaluated the potential availability of nickel from 151 deposits in 18 market economy countries and selected 126 for detailed analyses. An evaluation was made of tonnage-cost relationships indicating the quantity of nickel available at various total costs of production expressed in dollars per pound nickel, including a 15-pct rate of return on the invested capital. The 126 deposits studied contain approximately 73 million metric tons (t) of nickel. An estimated 52 million t is available from laterite deposits, of which less than 2 pct could be produced at $3.50/lb Ni, about equal to the average published price of nickel in 1981. Approximately 21 million t of nickel is available from sulfide deposits, of which about 10.0 million t can be produced at $3.50/lb. Sensitivity studies performed for both laterite deposits and sulfide deposits indicate that the total cost of nickel from laterites is most sensitive to increases in energy costs, and that sulfides are most sensitive to increases in labor costs; sulfides are also sensitive to changes in byproduct revenues. In 1983 the Nickel Mountain mine in Oregon was the only U.S. producer, though development continued on the Gasquet property in California. Of the total 5.1 million t of recoverable nickel in the United States, about 20 pct is available at or below $3.50/lb.

Jan 1, 1984

By E. C. Baker

The Bureau of Mines estimated the economic feasibility of investing in a directional hole methane drainage project in the Pittsburgh coalbed for 5 yr in advance of mining. This report estimates the capital investment and operating cost of recovering 325 MMft3 of methane gas per year and the selling price of approximately 317 MMft3 of gas per year. The labor, equipment, and supply requirements were determined from those of a previous directional hole drilled at the Emerald Mine, near Waynesburg, PA. The cost of equipment, materials, services, and labor are in third quarter 1982 dollars. They were obtained from vendors, contractors, and the U.S. Department of Labor. Findings indicate a total capital investment of $1,381,160. Annual operating cost amounted to $167,690. At a wellhead price of $2.05 per thousand cubic feet, the sale of approximately 317 MMft3 of gas per year results in a rate of return on investment of approximately 25 pet.

Jan 1, 1984

By Dr. O’Neil Thomas J., Donald W. Gentry

It was a western truism that more money was made from selling mines than from buying them, just as it was accepted that many a good mine had been spoiled by working it. from R. E. White, "The Mining Town," Alta California August 18,1873 INTRODUCTION One of the most important aspects of mineral enterprises of US corporations is the influence of the depletion allowance on cash flow. This allowance permits mineral producers to claim sizable federal income tax deductions not available to other industries, and these deductions significantly increase cash flows in mining. In the past several years the minerals depletion allowance has come under increasingly heavy fire from many sectors as a tax loophole that deprives the federal government of large amounts of revenue. One estimate of the loss of tax dollars in 1968 was $2.25 billion due to depletion deductions and intangible expenses in the oil industry. Largely on the basis of such arguments, the Tax Reform Act of 1969 reduced percentage depletion rates for a number of minerals, and the Tax Reduction Act of 1975 totally eliminated statutory depletion for most oil and gas. In regard to percentage depletion for hard minerals, the federal government has estimated its resulting loss of revenue at $1.75 billion for 1980. The TEFRA legislation of 1982 further reduced the statutory depletion allowance available to iron ore, coal, and lignite beginning in 1984. Thus, it is clear that minerals engineers and managers should have a thorough knowledge of the origin, evolution, justification, and computational procedures relating to the depletion allowance. ORIGIN AND EVOLUTION OF THE DEPLETION ALLOWANCE

Jan 1, 1984

By Lester M. Adams

In 1980, the Bureau of Mines surveyed a group of mine seals in Randolph County, WV, to evaluate their effectiveness for reducing toxic pollutants in mine water discharges. The survey focused on 11 block wet mine seals, but mine seals of several other types were also examined. The seals were installed in 1966 and 1967 in abandoned drift portals by the Federal Water Quality Administration (FWQA), a predecessor of the Environmental Protection Agency (EPA), in cooperation with the Bureau of Mines and other Federal and State agencies, in a project known as Elkins Mine Drainage Pollution Control Demonstration Project. The seals were designed to prevent air from entering the mine portals while allowing mine water to flow out. It was believed that by preventing air from entering inactive or abandoned mines, the formation of toxic pollutants and acid mine drainage (AMD) could be reduced. Evaluation of the seals was based on water flow measurements, water analyses, and visual observations. The Bureau's 1980 data were compared with past data collected by the EPA. Several leaks and failures were observed in the clay seals, as evidenced by apparent blowouts and the absence of vegetation where the mine water surfaced. Analyses of the 1980 data indicated some improvement in the quality of water discharged from many of the wet air seals.

Jan 1, 1984

By Duane L. Abata

This work, conducted under Bureau of Mines contract, deals with the development of a computer graphics software package that will: 1. display mine ventilation schematics and other representative Illustrations for a real-time data acquisition system under development by the Bureau, and, 2. utilize the Bureau-owned Minefire and Ventilation Code for display of ventilation on and contamination predictions. The software package has been written try operate on a 64K, Z-80 based microprocessor-computer. The project has been divided into two phases. The first phase dealt with the development of the graphics software The sec rind phase dealt with the retrofit of the Minefire and Ventilation Code to the Z-80 microprocessor-computer.

Jan 1, 1984

By P. R. Thomas

The Bureau of Mines determined the costs associated with the production of chromium, in the form of chromite and high-carbon ferrochomium, from the demonstated resources of 10 market economy nations. The analyses evaluated the relative geologic and economic position of these chromite resources contained within 80 producing or potential mining operations. This report presents cost evaluations of a demonstrated resource of chromite, contained within the nations studied, of appoximately 1.2 billion metric tons (t). Of this total, 70 pct is contained within the southern African nations of Zimbabwe and the Republic of South Africa. The majority of current chromium mining and smelting capacity is contained within these two countries as well. India and the Philippines have recently demonstrated greatly increased chromite resources and hold the most promise for expanding both chomite and ferrochromium production outside southern Africa. Their demonstrated resources represent approximately 7 and 16 pet, respectively, of the cost evaluated total tonnage. Chromite resources, on an identified or hypothetical basis worldwide, are highly concentrated within Zimbabwe and South Africa, with these two nations containing in excess of 95 pet of the total. Given the present market structure, a majority of chromium contained within the demonstrated chromite resources of the nations studied is economically recoverable; but from a long-term resource and economic perspective, South Africa should inceasingly dominate the markets for both chromite and high-carbon ferrochromium. In addition, it is anticipated that an increasing percentage of chromium traded on the world market in the future will be in the form of high-carbon ferrochromium as opposed to chromite, as this additional processing stage continues to relocate from the industrial nations that account for a majority of chromium consumption to those nations that mine chromite.

Jan 1, 1984

By Luis v. Coppa

Since its inception in 1910, the Bureau of Mines has been the principal Federal agency involved in ore reserve estimations, using such traditional methods as polygons of influence and variations of inverse distance weighting While adequate for estimating the average are grades in a mining block or section, these methods do mot, however, provide a consistent way of quantifying the reliability of the estimates. This report describes a technique for enhancing ore reserve estimations using geostatistics, the methodology of which combines the spatial and random aspects of geologic phenomena into a formal theoretical framework for deriving the estimation variance of ore reserves. Correctly used, geostatistics enables confidence intervals to be placed around ore reserve estimates calculated from drill hole data. A geostatistical software system was obtained -From the U.S. Geological Survey and installed, aster slight modifications, on the Bureau's Wang computer. System testing and validation was conducted using a simple cast-book-type example. This was then followed by variogram analysis, point kriging and block kriging of data from a previously worked section of a uranium mine.

Jan 1, 1984

By W. H. Somerton

Many oil-producing formations contain significant amounts of clay. Because of the large surface area and reactivity of such surfaces, the response of the formations to various recovery processes may be dominated by the reactions of fine-grained minerals, including clay minerals, in the formations. Thus, the success or failure of enhanced oil recovery (EOR) methods may be controlled to a large extent by the amount and nature of these minerals in the formations to which the methods are being applied. One of the deterrents to the successful application of chemical EOR methods is the loss of chemicals injected into the formation, to non-oil recovery processes. These chemical loss processes include adsorption onto mineral surfaces, chemical reactions with rock and fluids in the formations, possibly leading to precipitation and plugging of the formation, and trapping of chemicals in parts of the rock structure so that they become unavailable for displacing oil. Chemicals that may be injected include surfactants, polymers and caustic solutions which react with organic acids in the crude oil to produce surfactants in-situ. These losses are most pronounced in fine-grained reservoir rocks containing substantial amounts of clays.

Jan 1, 1984

By William L. Rice

This Bureau of Mines Open File Report on nickel is one of a series of minerals availability commodity deposit abstracts. Nonconfidential information from the Minerals Availability Program data base covering domestic and foreign nickel properties and deposits has been abstracted for use in this report. Abstracts include applicable data on location, published reserves and resources, geology, mine and beneficiation systems, and operation information.

Jan 1, 1984

By N. Seidle

Numerous studies conducted in the 1960's and 1970's concluded or implied (1) that a high accident rate in terms of severity and frequency exists among new (first year) operators of mine machinery equipment, and (2) that lack of experience and training is a major cause of this high accident rate. Further studies refined this premise to show that the major causes of accidents among first year operators are: (1) lack of manipulative skills; (2) failure to follow/adhere to routine procedures; and (3) failure to recognize and respond properly to hazards. This report describes the design, development, and manufacture of a shuttle car operator training system, including a program of instruction which: ? Is economically feasible. ? Addresses accident data and specific causes of accidents. ? Includes an aerospace quality simulator of sufficient fidelity to teach and develop manipulative skills, recognition of and response to hazards, and routine and emergency procedures. ? Is designed to significantly reduce the severity and frequency of accidents especially during the operator's first year. ? Is designed to significantly improve the performance of the trainee as compared to the standard learning curve. Development of the simulator produced several valuable by-products including a major state-of-the-art technological advance in visual systems for simulators, and a first-time application of (certain) advanced filming techniques to underground filming.

Jan 1, 1984

By Robert A. Cummings

A rock mass classification system has been developed for recommending drift support requirements in block caving mines. This development follows a two-year program incorporating field observations of support practice and performance in rocks of different classes, at several U. S. block caving mines. Popular rock mass classification systems presently in use for tunneling were applied at the various field sites; and were evaluated for conformance with caving mine support requirements and for general utility to caving mine operations. The developed system (MBR System) accepts readily-obtainable engineering and geologic data to yield a rational estimate of support requirements. The background and development of the MBR system is described in this report (Volume I). The use of the system is given in the Manual, a separate volume (Volume II).

Jan 1, 1984

By E. Kamon

This report summarizes completed research pertaining to the reaction of human subjects exposed to Self-Contained Breathing Apparatus (SCBA) stressors during escape conditions (viz., resistance breathing, C02 breathing, hot air breathing, and static positive facepiece positive pressure breathing) and the development of an automated breathing and metabolic simulator (ABMS). Volume I contains summarizes of the studies performed under this contract. Volume II is an appendix which contains more detailed descriptions of these studies.

Jan 1, 1984

By Leslie S. Rubin

A ventilated helical boost pump was developed that can handle varying flow rates and/or solids concentrations while operating at a single rotational speed and without computer assisted feedback controls. The boost pump developed and briefly tested during this program was designed to accomodate flows suitable for a 3-in. diameter pipeline. The boost pump's ventilated design provides the automatic pressure regulation needed to meet the system's requirements for supporting transient pipeline flow.

Jan 1, 1984

1. Domestic Production and Use: In 1983, 12 companies operated 27 primary aluminum reduction plants, with 4 firms accounting for 65% of production. Washington, Oregon, and Montana accounted for 35% of the production; Indiana, Kentucky, Maryland, New York, Ohio, and West Virginia 35%; Tennessee, Alabama, South Carolina, and North Carolina 14%; other central States 16%. Based on published producer prices, output of primary metal in 1983 was valued at over $5.7 billion. Aluminum consumption by 25,000 firms was centered in the East Central United States. Packaging accounted for an estimated 37% of domestic consumption in 1983, transportation 19%, building 17%, electrical 9%, consumer durables 8%, and other uses 10%.

Jan 1, 1984

Research 84 highlights significant studies conducted during the past fiscal year at Bureau facilities and offices. Readers who want more information about the projects and studies summarized here can contact the researchers whose names and locations appear with each summary. General information on Bureau of Mines programs is available from the Office of Technical Information, 2401 E Street, NW., Washington, DC 20241. A listing of principal officials, a location map of field facilities, and a selected bibliography of publications and patents issued on Bureau developments during the past 3 years are provided.

Jan 1, 1984

This report summarizes the work performed under USBM Contract No. H0395041. The primary objective of this work was to extend the noise control technology developed under earlier USBM projects to a wider range of load-haul-dump models to evaluate the general applicability of these techniques. Noise control treatments were designed, fabricated, and installed on three Wagner LHDs (an 5T-2B, ST-2D, and an 5T-8A) selected as demonstration machines for this project. The machines were evaluated either in production mines or at the Bureau's Lake Lynn Mine. The results indicate that it is possible to achieve overall noise reductions of between 4 and 8 dB using these techniques. Engine cooling and seal design were determined to be important design issues in such treatments.

Jan 1, 1984

By R. J. Fantel

The Bureau of Mines investigated the resource potential of 201 mines and deposits in 28 market economy countries and 17 mines and deposits in the U.S.S.R. and China. The 201 mines and deposits evaluated from market economy countries contain an estimated 34.2 billion metric tons of recoverable phosphate rock (at the demonstrated resource level), with Morocco and Western Sahara accounting for 61% (21 billion tons), followed by the United States with 19% (6.4 billion tons). The 17 mines and deposits evaluated in the U.S.S.R. and China contain approximately 1.5 billion tons of potentially recoverable phosphate rock. Potential annual capacity from low-cost, high-grade producing mines in the United States is estimated to decline significantly during the latter half of the next decade, and the United States will have to develop new, higher cost, lower grade mines in order to satisfy demand into the next century. Of the world's new production capacity which could likely be developed over the next decade, slightly over one-third could be produced at an estimated 1981 cost of $40 per ton or less, and about two-thirds would cost in the $40 to $50 range (including a 15% rate of return). In comparison, moot of the competing phosphate rock from producing mines in Morocco could be produced for under $40 per ton. The United States has sufficient demonstrated resources of phosphate rock (plus huge quantities at the identified and hypothetical resource levels) to satisfy domestic consumption for many years to come, but its future ability to compete in the major export markets against low-cost competitors is much more uncertain.

Jan 1, 1984

By Allen G. Gray

It's not news to you that the United States is highly vulnerable to potential problems in supply of critical and strategic metals, and that these metals - chromium, for example - are employed in important bearing alloys. It's also not news to you that there is a significant challenge to improve durability and life of bearing systems which contribute to conservation as well as productivity. The objectives of this workshop are to identify available technologies and opportunities for new technologies in conservation, substitution, and displacement of critical and strategic metals in bearing systems. These considerations are among the most viable options for reducing vulnerability to a cutoff of chromium and other critical metals and action should be taken to identify and develop those technologies now rather than after a crisis is upon us.

Jan 1, 1984

By H. L. Monro

Contribution by B. K. Martust I congratulate the author on his interesting paper. In my view, the establishment of the level at which South African gold output is at some kind of optimum is an interesting though somewhat academic exercise. Contribution by D. M. Hawkins* The thesis of the paper is a very interesting one, but, before it is used as the basis of any firm proposals to restructure the mining industry, which changes may be irreversible, one should be very sure that the basis of the calculations is sound. Contribution by P. J. Niewenhuizen* The hypothesis advanced by Mr Monro that the demonetization of gold in August 1971 introduced a major new policy variable, namely the supply-pricejdemand-price relationships, into the decision making process touches on a matter that has never really been given serious thought by the industry. Contribution by B. G. Kingsman* As a co-worker on the development of an econometric model for supply and demand in the world gold market with Mr H. L. Monro, it would perhaps be useful for me to make some comments on the various points raised in the discussions on his paper.

Jan 1, 1984

By David M. Rubio

The Ortiz Mine is an open pit-heap leach gold operation in central New Mexico processing about 3,100 tonnes (3,400 short tons) per day. It is the initial mining property in the United States developed by Gold Fields Mining Corporation, a subsidiary of Consolidated Gold Fields, PLC. This paper discusses the evolution of the present mining and ore control procedures as adaptions to the characteristics of both the rock being mined and the orebody, and with respect to the fact that mining is done by a contractor.

Jan 1, 1984