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'Nothing happens until something is sold' This statement is not original - it is a necessary orientation for marketing industrial minerals. The most important single philosophy of marketing is that it recognises the consumer as the starting point. Production orientation is concerned with producing products that the customer might buy. Market orientation is concerned with finding the needs of the customer and how they can be satisfied. The difference between the two approaches can be recognised in company structures but the most tangible difference is in the approach by a company to selling and development. In other words, it is the market that decides what can be done with a mineral. The markets requirements dictate what mineral, what grade and what price will be paid. Therefore it follows that when pricing a product we should avoid taking the basic cost and arriving at a final selling price through a series of standard markups (unless government insists on it). We should start with the price the market can stand and work backwards to find out whether you have a profitable product or one that will fail because it is too dear. Naturally a thorough understanding of production costs is necessary particularly when marginal markets are concerned.

Jan 1, 1978

By Robert Hochscheid

When the original water-only cyclone patents were established in the 1950?s, the supplies of low cost oil and natural gas were abundant and low selling prices for metallurgical and steam coal provided little incentive for developing more sophisticated coal cleaning systems. Bituminous coal sold for less than $5.00 per ton, and in this period many domestic coal producers discarded to the slurry pond the coal finer than 0.5-mm. For many producers, the selling price would not permit the recovery of the capital and operating costs required for dewatering and drying the fine coal. Water-only Cyclones Clean Fine Metallurgical Coal The first broad interest in the water-only cyclone became evident in the mid- 19601s, and though some work was done on coarser coals, investigators were particularly interested in cleaning coal finer than 0.5-mm. Flotation was the only fine coal cleaning method that was broadly accepted, but short-comings were recognized and investigators were looking for an effective fine coal cleaning device or system. Because of the greater market value and the need for reducing pyritic sulfur in metallurgical coals, much of the development work of the 1960's was done on coking coals.

Jan 1, 1981

By Drew A. Meyer

Magnetic metals are the granddaddy of products which may be recovered from municipal waste. Aside from hand-picking of newsprint and corrugated boxes, magnetic metals are usually the first items a resource recovery facility considers extracting from the solid waste stream. Magnetic metals from incinerator residues and from municipally mandated source segregation programs were first used in significant quantities by the Copper Industry. The ability of the Copper Industry to consume metals from the municipal solid waste stream raised everyone's hopes that there would be more markets for municipal scrap when more of it became available. Somehow something has gone wrong. It is widely acclaimed that scrap is an environmentally sound and economical source of iron. It is greatly in demand for Its contained energy. The prices that the steel industry has been willing to pay for the scrap during the past year are all the proof anyone should need that scrap Is desirable and sought after. But the very fact that I'm speaking today on the markets for magnetic metals recovered from municipal waste indicates that something Is wrong. Clearly the problem is not that we do not need the scrap. The problem is we have not produced the kind of scrap that consumers are willing to buy - either through ignorance of what the consumers wanted or through a conviction that ferrous scrap is so obviously a good thing somebody will surely want it no matter what. Dr. Harvey Alter of the National Center for Resource Recovery has said "You can't sell garbage". In a sense that is only partly true. It really should be "You can't sell garbage for very long". The Steel Companies, in an effort to prove that steel is an environmentally desirable packaging medium, have bought some scrap that can only be described as garbage. They are to be commended for doing so. The fault lies not with the Steel Company for taking and paying for "garbage" but with the producer of that poorly prepared scrap. Far every instance where the steel industry has purchased the often undesirable product from resource recovery facility there are several magnetic installations sitting Idle because someone forgot the most essential part of producing the magnetic product - selling it to someone.

Jan 1, 1975

By W. E. Segsworth

Introduction By far the largest part of the money raised for mining is raised by honest and legitimate means; but a not inconsiderable amount is raised by fraudulent sales methods. It will be conceded without argument that the greatest menace to the mining business is the fraudulent promoter. The sale of worthless mining stocks to the public by high-pressure. salesmen, house to house canvassers, telephone campaigns, fraudulent use of the mails, fraudulent statements, and reloading, has seriously prejudiced the public against even legitimate mining. A very small percentage of the funds raised by such fraudulent means is ever spent on the property, but instead is absorbed by the promoter in illegitimate' profits, enormous commissions, high office rents, and other expenditures, and is just so much subtracted from the fund which the legitimate developer needs to bring new mines to the point of production. The mining fraternity has been at fault in that, while they recognized this situation, they made no adequate attempt to rectify it. They knew that these fraudulent practises were conducted by parasites who attached themselves to the mining business in boom times and claimed to be part and parcel of it, but who were merely professional salesmen and promoters who, when there was not a mining boom, were selling sky-line real-estate, worthless oil stocks, or fraudulent securities which happened to be popular with the public. While mining people had this distinction well in mind, the public did not differentiate between the crooked promoter temporarily selling fraudulent mining stock and the honest promoter who made mining finance his life work; and we did little to make this distinction clear to the public or to sweep these money grabbers out of our house. The historic boom of 1927-8 and '29 brought with it the usual crop of crooked mining promoters, and the scandals resulting from their operations forced the Governments into the enactment of laws to attempt to protect the gullible public against the operations of these meanest of thieves and to appease public clamour.

Jan 1, 1934

By Samuel H. Dolbear

THE value of a mine is basically dependent on its capacity to yield profits. Since the ore must be mined, treated, and sold, some of it in various future years, there is a risk involved as to future costs, selling price, and working conditions. It cannot be expected that the economic condition existing at the time of valuation will continue unchanged for long periods in the future.

Jan 9, 1953

By Salinger, Herbert

WITH the large amount of metallurgical re- search work now being done and the constant effort of the engineer to effect economies of operation, I think it is a safe prediction that the next few years will see a great change in the handling of mine products. The well-managed mine, with sufficient ore reserves to warrant the necessary plants, will increasingly call upon the metallurgist and chemist for the solution of its problems. Shipping sorted ore or concentrate to the nearest smelter will not be the course followed. From ore to metal, or at least to a product directly salable to the consumer, will be the practice followed. As a consequence, mine managers will be increasingly interested in metal trade problems. By metal trade I mean the buying, selling, shipping, handling, and all the practices, forms and customs that go to make up the trade.

Jan 1, 1928

By Clinton H. Crane

IN October, 1925, J. R. Finlay delivered an address entitled, "The Future Price of Lead." Lead was then selling at 8.85c. and Mr. Finlay and most of the rest of us were concerned about the shortage. Now, a little more than six years after, lead is selling for 3.55c., and nobody is worrying about the difficulty of getting plenty of it. For 1931 the U. S. G. S. reports United States produc¬tion as 390,000 tons of recoverable lead in ore. Our estimate is slightly higher than this; nearer 400,000 tons. This is the smallest production since 1911 and 1912, but in spite of this, stocks for the year-have increased nearly 50,000 tons. Our estimate for the production outside the United States is 1,120,000 tons, or more than double the production of either 1920 or 1921, and 30 per cent more than in 1913. Stocks abroad probably have not increased more than stocks in the United States. In other words, foreign consumption is double what it was in 1.920-21, whereas domestic consumption is substantially less. It looks as if Mr. Krueger, president of the Swedish match trust, was right when he said that "This country had better stop worrying about Europe and think a little bit more about its own affairs."

Jan 1, 1932

By Donald M. Duncan

An acceptable source of concrete aggregate is available in Kansas City in a continuous, medium bedded, slightly dipping limestone unit. Removal is accomplished in shallow depth, 12 feet to 17 feet high, room and pillar mines. The accepted empirical design spaces 20 foot pillars 60 feet on center. A portion of the 20 foot unit is left in place for roof support. Rock and soil cover is variable to 100± feet maximum. Long-term stability of these mines is affected by numerous factors, including the above mine-rock profile, ground water conditions and mining practice. Crusher-run aggregate sells at the mine for $2.20 per ton, yielding a gross income of $2.00 to $2.80 per square foot of mine. Use of mine space for real estate development requires a new perspective in mine development. Mining practices to obtain long term stabile structures can become an over-riding factor as compared with minimum production costs and maximum extraction ratios. Poorly mined areas are unusuable for secondary purposes. Development cost for lease space in less desirable mines is substantially greater than those planned for a secondary use. Real estate development in mine space involves unique engineering problems. Properly engineered developments offer singular advantages. Warehouse lease space sells for $.50 to $1.00 per square foot per year; fully developed office areas may double these values.

Jan 1, 1968

By Robert C. Johnson

Domestic byproduct fluorine (in fluosilicic acid) availability at various price levels of aluminum fluoride were determined and a contingency availability curve developed. The supply of byproduct fluosilicic acid is restricted in amount to certain geographic regions, where plants processing phosphate rock are located, and the byproduct can be collected. The maximum possible U.S. annual supply, based on potential plant capacities, is 373,400 tons of fluosilicic acid containing 295,400 tons of fluorine. Based on inputs of 5, la, 25, 50, and 100 thousand tons per year, five levels of producing aluminum fluoride from fluosilicic acid (100 percent) were costed. Based on a 12-percent discounted cash flow rate, including the cost of salvaging the fluosilicic acid, the calculated selling price of aluminum fluoride ranged from $233 per ton to $448 per ton. At the higher price, 98 percent of the potential supply of byproduct fluosilicic acid could be used profitably; at the lower price only 46 percent could be used profitably.

Jan 1, 1973

By James L. Poole

INTRODUCTION Companies in the mining industry are subjected at times to currency exchange rate risks and interest rate risks. The former occurs any time a firm deals in more than one currency. The latter occurs anytime a firm is financing itself with borrowings that have a floating interest rate (although a fixed rate can be a problem at times). FOREIGN EXCHANGE RISKS There are two general reasons why exchange rate risks (FX risk) can occur: First, a firm may be building a mine or plant in another country where financing for the plan is denominated in funds other than the country hosting the plant. For example, if a Canadian firm is building a smelter in another country which is being financed with Canadian dollars, the C$100 million for labor, which must be paid in the local currency, has subjected the firm to a C$100 million FX exposure risk. If after the cost estimates were made the local currency appreciates 30% against the Canadian dollar, the cost of labor has increased to C$130 million. (Of course, the local currency could also devalue during this period making the labor cost component less than estimated.) The other reason exchange rate risk arises is due to the fact that the costs of production in one country producing minerals may be incurred in one currency while the production is sold in another currency, such as coal being exported from Canada to Japan under contracts denominated in Yen. In this example, the Canadian firm is exporting coal to Japan and being paid in yen in 30 days at a contract price of 100 Y per ton. Furthermore, assume that the mining firm anticipates a depreciation of the yen against the Canadian dollar of 5% in the next 30 days. Therefore, the mining firm stands to lose 5% of the value of its shipment in a month's time not including carrying costs. In both cases, the mining company risks an adverse change in the exchange rate, that is, the currency the company holds may decrease in value relative to the other currency. There are a number of ways to mitigate the exposure to foreign exchange which can be utilized by the mining company. Optimally, a company should try to match all their inflows and all their outflows in the same currency. For example, if a Canadian firm has mining costs and debt service costs both denominated in Canadian dollars then 100% of their receipts would need to be in Canadian dollars. If a Canadian firm has 70% of its cash outflows in Canadian dollars and 30% of its cash outflow in American dollars in the form of a loan amortization then their receipts would need to be 70% in Canadian dollars and 30% in U.S. dollars. This general principle of matching cash receipts and cash costs in the same currency works fine in a perfect world but what of the real world when these cannot be matched? In actual practice, however, the financial markets have developed a number of ways in which foreign exchange risks can he managed or reduced. FORWARD MARKETS One method is to use the forward markets which are made on a world-wide basis by the commerical banks for foreign exchange. If a firm wanted to lock in the current exchange rate for the receipt of a foreign currency at some point in the future, they could do so by contracting on the forward market with a bank selling that foreign currency at the current rate at the future date. For example, assume that a Canadian firm is exporting coal to Japan which would pay yen in 90 days. If a firm wanted to lock in today's exchange rate they could contract with a bank to sell on the forward market yen in 90 days. When the yen was received the contract would be executed by selling the yen to the bank and receiving the previously agreed upon number of Canadian dollars. Generally speaking, the forward market can be used to sell forward about 12 months. The costs of selling (or buying) forward

Jan 1, 1985

By IPMI Educational and Scientific Foundation

It is with great pleasure that we announce the availability of this fourth issue of the IPMI Journal, a publication of the International Precious Metals Educational and Scientific Foundation. This digital peer reviewed publication has been created as a vehicle for the sharing of technical information related to the science and technology of precious metals. Since 1976, the International Precious Metals Institute has championed the exchange of information of critical importance to the precious metals scientific and commercial communities through its various communications vehicles. This has included instructional videos, annual conference symposia, special topic committee meetings, regional seminars, and professional and student achievement awards. Due to the breadth of important topics related to all aspects of precious metals, it has been the vision of the IPMI to provide a publication available to the general public that would become a key source of pertinent topics containing high quality publications by experts in their fields of study. Historically, the IPMI has attracted world renowned experts in many fields (including Nobel Laureates Henry Taube, Ei-ishi Negishi, Robert Grubs, Professor Ben Feringa, and David MacMillan) in the dissemination of discoveries, inventions, and industry proven practices. Such information has a total value greater than the sum of its parts as seemingly unrelated innovations from distinct focus areas can be adapted to solve problems. Because of this important characteristic of information exchange, we have decided to create a digital journal, available to the general public, that will not only communicate state of the art discoveries and sound practices, but will also review historical communications from the IPMI’s archives that have value and use even in today’s environment. On behalf of the members and leaders of the IPMI, we hope you will find value in this new publication.

Dec 1, 2021

By J. R. Thoenen

"The curtailment of imports of foreign potash during the World War directed attention to the necessity of establishing a domestic source of potash for fertilizer, and considerable study has been given to the subject by Government bureaus, research organizations, and private individuals. These studies have covered all known sources of potash, and among them the extensive greensand deposits of New Jersey in which the potash content is found in the mineral glauconite have been investigated.Several hundred patents have been obtained covering processes for the extraction of potash from siliceous minerals, but up to the present time none have proved successful on a large commercial scale.When the investigation of the potash deposits of Texas was started by the Federal Government, the laboratory study of the drill cores was assigned to the Nonmetallic Minerals Experiment Station at New Brunswick, New Jersey, with the object of ascertaining a possible commercial method of utilization.The purpose of this preliminary study was to investigate existing literature and previous investigations to ascertain the extent and availability of the deposits, the extent of commercial success so far attained in potash extraction, the most promising known methods and by-products obtained from them, probable markets, and possibility of competition with foreign potash, and by a study of these data to determine whether further chemical engineering analysis and laboratory investigation were warranted.As the study advanced it became evident that adequate reserves of green-sand were available for many years supply. and that whereas many processes had been patented few had been tried commercially. In collaboration with former private and Government investigators these patents were first divided into two"

Feb 1, 1929

This summary of State laws on explosives was compiled primarily to ascertain what subjects relating to their control have been acted upon by each State legislature and, in general, how they have been treated. It does not include any legislation passed after 1942, or any proclamations, regulations, or administrative orders. It does not purport or attempt to be authoritative. If any problem arises involving interpretation of the statutes of any particular State, the original source must be consulted for the exact words used by the legislature. This summary, however, will be useful in determining whether relevant statutes exist and in locating them quickly, with a minimum of effort. It will be of value also in comparing statutes in one State with similar statutes in other States to determine what construction has been placed upon them by the courts of those jurisdictions or to contrast the varying provisions of many States upon a single subject. To make these comparisons easier, the statutory provisions for each State have been grouped under several major topics in outline form. Although

Jan 1, 1943

This summary of State laws on explosives wag compiled primarily to ascertain what subjects relating to their control have been acted upon by each State legislature and, in general, how they have been treated. It does not Include any legislation passed after 1942, or any proclamations, regulations, or administrative orders. It does not purport or attempt to be authoritative. If any problem arises involving interpretation of the statutes of any particular State, the original source must be consulted for the exact words used by the legislature. This summary, however, will be useful in determining whether relevant statutes exist, and in locating them quickly, with a minimum of effort. It will be of value also in comparing statutes in other States to determine what construction has been placed upon them by the courts of these jurisdictions or to contrast the varying provisions of many States upon a similar subject. To make these comparisons easier, the statutory provisions for each State have been grouped under several major topics in outline form. Although this sometimes has resulted in disruption of the continuity of individual acts, the increased general clarity and availability of comparable sections have more than justified the procedure followed.

Jan 1, 1943

By ARCH L. FOSTER

The rapid increase in the mmber of automobiles during the last 25 years has resulted in the insistent and growing demand for better roads of more permanent construction. Some form of State license for the operation of automobiles has been in effect almost from the time of the first "self-propelled" vehicle, and some part of the revenue derived from the sale of these licenses has been applied to the maintenance and construction of roads. However, to obtain funds with which to build their present highway systems, the individual States have resorted to the taxation of gasoline. The first State to adopt a gasoline tax was Oregon, the law becoming effective February 25, 1919. By 1928, all of the States except two had levied taxes on gasoline at rates varying from 2 to 5 cents per gallon. New York and Massachusetts passed gasoline tax laws which became effective in 1929. Regulations governing the quality and the methods of handling gasoline and other petroleum products sold in the States have also been adopted by 29 States; many of these laws antedate the adoption of a gasoline tax. The variations in motor fuel speci- fications and methods of test have been pronounced in the several States. The Bureau of Mines, in making certain technical studies of the rasolines marketed throughout the United States, the results of which are reported in its semiannual motor gasoline surveys and other reports, has had occasion to obtain and compile all of the present (April 1, 1931) tax and pection laws of the several States which relate to motor fuel and other petroleum products. To facilitate the use of this material and to obviate the need in most cases of reading the complete text of the laws as published by the States, the pertinent information was arranged in tabular form for cly reference. 3 Although digests of States gasoline tax laws' are available and copies of the complete laws can be obtained from the State agancies in charge of the enforcement of gasoline tax and inspection laws, it is believed that

Jan 1, 1932

By BUREAU OF MINES

This summary of State laws on explosives was compiled primarily to ascertain what subjects relating to their control have been acted upon by each State legislature and , in general , how they have been treated . It does not include any legislation passed after 1942 , or any proclamations , regulations , or administrative orders . It does not purport or attempt to be authoritative . If any problem arises involving interpretation of the statutes of any particular State , the original source must be consulted for the exact words used by the legislature . This summary , however , will be useful in determining whether relevant statutes exist , and in locating thern quickly, with a minimum of effort . It will be of value also in comparing statutes in one State with similar statutes in other States to determine what construction has been placed upon them by the courts of these jurisdictions or to contrast the varying provisions of many States upon a similar subject . To make these comparisons easier , the statutory provisions for each State have been grouped under several major topics in outline form . Although this sometimes has resulted in disruption of the continuity of individual acts , the increased general clarity and availability of comparable sections have more than justified the procedure followed ,

Jul 1, 1943

By Sidney Katell

This Bureau of Mines study estimates typical capital investments, operating costs, and selling prices for two bituminous coal strip mines in the Eastern and Interior provinces and a subbituminous coal operation in the Northern Great Plains province. The annual productions were based on tonnage required to fuel a 250-million-standard-cubic-foot-per-day, high-Btu gas plant. The annual tonnage for the Eastern province mine is 4.8 million tons; for the Interior province mine, 6.72 million tons; and for the Northern Great Plains province mine, 9.2 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the terms of the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes. Initial capital investment varies: $65,137,900 for the 4.8-million-ton-per-year (MM tpy) mine in the Eastern province, $78,514,600 for the 6.72-MM-tpy mine in the Interior province, and $42,050,100 for the 9.2-MM-tpy mine in the Northern Great Plains province. Total capital investments for the Eastern province mine, the Interior province mine, and the Northern Great Plains province mine are $86,969,900, $109,378,500, and $78,543,500, respectively. Corresponding selling prices for the coal, per ton, are $6.94, $6.03, and $3.39, assuming a 15-percent discounted cash flow rate of return after Federal income taxes. These studies are considered typical for the areas involved. Costs will vary depending on specific locations in these areas.

Jan 1, 1976

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 J. M. King, C. J. Boggs

Acquisitions of mineral properties and companies can saddle the acquirer with unexpected and substantial liabilities and obligations incurred by the acquired or selling company that are not readily apparent from review of the company's books or files. This paper will address selected areas of concern, such as environmental and reclamation liabilities, problems of foreign ownership by the buyer or seller, pension obligations, plant closing laws, effective title review, land use and zoning.

Jan 1, 1992

By John R. Spencer

Today's coal market offers many unique buying and selling opportunities. By reviewing past and present marketing practices, new contracting philosophies can be developed with cooperation between the buyer and seller that can lead to a more stable market. This paper presents an analysis of the past and present coal markets and techniques that are currently being used in contracting that are intended to develop a more stable market place in the future.

Jan 1, 1987