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By Charles F. Herbert

The waves of prospectors who struggled across the wide Alaskan wilderness between 1898 and 19 10 came close to but did not actually find the rich copper/zinc/silver deposits strung out along 161 km ( 100 miles) of felsic schist in the remote Brooks Range of northwestern Alaska. They had heard rumors of gold in the valley of the Kobuk River, so they skirted the Arctic ice pack in the Chukchi Sea and, in a force at least 800 men strong, ascended the Kobuk River in 1898. Twenty-eight placer mining camps were established but only a handful survived for more than a few years. One of the placers that died rapidly was Ruby Creek. A map showing the location of Alaskan mineral deposits is given in Fig. 1. The Ruby Creek miners, disappointed with the scarcity of gold in that creek, followed copper-bearing float to two places where the float was especially plentiful. Pits, a short adit, and a shallow shaft uncovered copper carbonates, bornite, and chalcopyrite in fractured limestone but the remoteness of the district blocked efforts to sell the claims or to raise capital for development. Shortly after 1906, the copper prospects were abandoned and, except for an account published in 1913 by the US Geological Survey, they were forgotten, as were the names of the prospectors.

Jan 1, 1991

By C. B. Manula

A method for the feasibility assessment of open-pit operations using conventional shovel/ truck systems to mine steeply pitched coal seams has been applied at The Pennsylvania State University. Three computer models were developed for the analysis: a geology and reserves model (GEOL), an open-pit materials handling simulator (OPMHS), and a cash flow model (CASH) (Manula, Albert, and Burgos, 1976). GEOL provides the basic mining data; OPMHS simulates shovel/truck performance related to pit profiles and average mining locations to provide productivity rates needed to size the system; and CASH provides either a selling price or rate of return (ROR) for the product. The general flow of information generated by these models is shown in Fig. 1. Since the ratio of overburden-extracted to coal-produced places a definite economic limit upon a mining venture, geological data must be analyzed with the least possible manual effort to minimize computational errors. This is especially true if the property contains several seams that are steeply pitched. In this situation, a computerized analysis is by far the most efficient and effective method to determine coal reserves and waste tonnage. This chapter describes the reserve model developed at Penn State and provides an example to demonstrate its application.

Jan 1, 1979

By Simon Wright, Roland Heersink

In the past, the center of most companies' e-initiatives has been on reduction of indirect costs, such as selling and procurement. Recently, e-commerce has moved its attention from back-office functions into manufacturing, in order to significantly reduce direct operating costs. This paper describes many of the Web-Powered Manufacturing initiatives being employed across various industries, and relates them to similar opportunities being started within the mining and mineral-processing sector. The following opportunities are enabled by Web-Powered Manufacturing: • Collaboration with outside experts to extend their pool of resources • Management of remote and distributed operations • Tie-in of small operations to a larger operation • Monitoring a position in a JV operated by a partner • Managing a plant located in someone else's facility • Having a chemical supplier manage his inventory in a customer's tanks • Having an equipment supplier remotely troubleshoot his equipment installed in a customer's site • Having an additive supplier provide remote pro-active. guidance in optimization of a customer's operation • Having software suppliers take responsibility for the results of their applications • Outsourcing software and systems support by providing remote access Details of one of these opportunities are described in this article, and the benefits captured using this approach and the technologies necessary to make them a reality are emphasized.

Jan 1, 2002

By Peter H. Grimley

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

Jan 1, 1988

By J. D. Austin

Currency fluctuations affect the rand revenues of all exports of mineral commodities, as well as influencing their price on local markets. Of the more than 50 mineral commodities produced by South Africa, about 75 per cent derive 40 to 100 per cent of their revenues from exports. . Although supply and demand are largely beyond its control, management can maximize its revenues despite fluctuating overseas prices and exchange rates by using the right market at the right time. Management can operate in the futures markets, which involve a specific commitment to deliver a specific quantity of a standardized commodity at a set time in the future and at a price that is determined on a futures exchange in open auction; or management can use the options market, in which a producer can insure against the risk of a falling price by taking out a put-option, which gives the holder the right (but not the obligation) to sell the commodity at a stated price at an agreed time in the future. In the forward markets, management has three available tools; forward currency transactions, trading of currency options, and money market hedges. Revenues, currencies of exchange earnings, purchasing power of the rand, and world price trends are shown in over 40 diagrams and tables for the main mineral commodities produced in South Africa.

Jan 1, 1984

By Edwin H. Bentzen

Talc, as a mineral, is rather widespread, but as an ore sultable for mining, it is rather limited. Materials sold as "talc" range from the impeccable white material from Italy to a gray-green-bluish material from Virginia. Some uses of the material called "talc" seem to be determined by the color of the material, some by the chemistry of the material, and some by the particle size of the ground material. But, there seems to be some overlapping of criteria used to judge the acceptability of a raw material. So then, any producer of talc material that is not a consumer of this raw material is faced with the age-old problems: "what do I call the stuff, and to whom should I try to sell it?" The answer to the first part is easy: if you want a high price, call it "talc"; if you want a low price, call it "soapstone". This may seem like a very simplified answer, but it is apparent that some of the products sold as "talc" have more than a minor amount of impurities in them; whereas, if they were called "soapstone", these same products would probably get a lower price.

Jan 1, 1973

By Robert M. Adler

In order for a taxpayer to produce income, he may be required to exhaust his capital assets. With respect to the mining industry, those exhaustible capital assets may result in income tax deductions under the general categories of depreciation, obsolescence, losses and depletion. The percentage depletion deduct ion concept is not based upon "economic" depletion, or "geological" depletion theories. Instead, it is wholly an income tax concept created by Congress. This is significant in that, in its application, tax depletion has no adherence to traditional economic or geological depletion concepts For example, the Internal Revenue Code limits percentage depletion to 50 percent of the miner's net income for the taxable period.1/ Should a particular miner extract and sell 500,000 tons of material during the year, but at a loss, he receives no percentage depletion. The same would apply to an electric utility which mined its own coal. Should its mining costs exceed the "going price" for coal, as established by actual arm's-length sales in the market, the utility has no net income, and is therefore not entitled to percentage depletion.2/

Jan 1, 1973

By Thomas E. Howard

Recently, the mining community has begun to move toward a more prominent place in the structure of American society. Extensive press coverage of our energy problems during the past year or two has led to an increasing awareness on the part of the public of the vital role that mining must play if today's standard of living is to be maintained. It appears that mining may be emerging from a status generally characterized in the public mind as an esoteric, dirty, man-killing, land- scape-despoiling endeavor, to a new stature that may eventually become as respectable as agriculture. To be sure, we are still being criticized, as has been the lot of miners since the time of Agricola. In fact, the clamor has never been louder. Nevertheless, the public, in increasing numbers, is beginning to know it needs us. But we cannot be complacent. Our improving stature brings along with it increasing responsibility. The mineral industry will be expected to produce mineral raw materials and fuels in ever larger amounts and sell them at reasonable prices, in the face of rising labor costs, decreasing labor availability, chacging labor attitudes, increasingly stringent environmental regulation, stricter health and safety standards, and a deteriorating geo-political climate.

Jan 6, 1975

The Secretary of the Treasury, acting through the National War Savings Committee, soliciting the support of patriotic associations in America in the sale of War Savings Stamps, has addressed the following letter to the President of the Institute: It is particularly desirable to have you urge the members of your association to give their assistance wholeheartedly, and to this end we urgently request that you write a letter to each of your members, outlining the aims of this campaign. That you may more easily draft your letter, we mention a few things in which your members could render a special service. Agencies and Sales Stations.-We desire immediately to establish several hundred thousand agencies and sales stations. It is as easy to sell a War Savings Stamp as it is in ordinary postage stamp, and we have launched a great drive to establish sales stations everywhere. The plan is simplicity itself! Your town, city, county or State Director can furnish you with supplies, posters and publicity matter. You can get the stamps from your post office or bank. Such stations should be at every pay window of manufacturing, industrial and mercantile establishments, and at every retail counter in the country. These stamps should be the easiest bought merchandise in the world, and when these agencies are established this end will have been accom-plished. Therefore, please lay extra pressure on the thought of immediately establishing these sales stations.

Jan 3, 1918

By Robert B. Parsons

"Canada doesn't really have a tax system for mining - it has eleven separate tax systems! The consequent maze adds some undefinable margin of difficulty to making investment decisions in Canada. But, this 11U1Ze is not likely to be simplified. Solution: learn it and sell it! Intricate Network of Winding PathwaysWebster's New World Dictionary defines the word ""maze"" as follows: ""a confusing, intricate network of winding pathways; labyrinth ... a state of confusion or bewilderment"". Webster's does not go on to give an example of a maze, but the dictionary could easily have referred to the taxation of a Canadian mining operation. The uninitiated would almost certainly look upon such taxation as a maze of the most perplexing sort.Twenty years ago, Canada's tax system was really quite simple. It is true that Canadian mining profits were subject to three levels of taxation (federal income tax, provincial income tax, and provincial mining tax), but this didn't pose a problem. Prior to 1974, at least the provincial income tax systems were somewhat the same in terms of rules .and rates, and even the provincial mining tax systems resembled one another. Mining profits were subject to pretty much the same rules, no matter what province or territory hosted the mine. Those were the “good old days” one could even dare to generalize about tax rates without fear of being labelled an imbecile!"

Jan 1, 1994

Geologist or Mining Engineer who has had sufficient experience to make examination of a large area and who can report upon economic value of any minerals found. Work will extend over a period of 2 or more years. Location, India. R-1660. Assistant Superintendent of malleable and gray iron foundry, young man. Must have thorough molding experience, especially on squeezers, knowledge of mixture control and operation of air furnaces, cupolas, and annealing ovens college graduate preferred. R-1727. Engineer thoroughly familiar with distilling, evaporating and drying machinery. Capable of taking charge of entire evaporator department, including engineering and selling. New Jersey. R-155C. Experimental Draftsman familiar with small automatic mechanisms, principally those produced in large quantities by punch-press methods, such as adding machines or typewriters. New York City. R-1566. Patent Draftsman.-At least 2 years' experience on perspective rend-ering of small automatic machinery. New York City. R-1570. Designer.-Familiar with hydraulic work and capable of going ahead with detail and design work without supervision. Pennsylvania. R-1575. Superintendent or Foreman. Knowledge of ceramics, clay products, electric porcelain, tile, factory materials, etc. New York State. Good salary to right man. R-1578. Designer. Experienced in designing mining machinery, including electric hoists. Canada (Quebec). R-1589. Construction and Operating Superintendent. Executive and thor-oughly experienced in the zinc melting industry. Will have charge of construction of plant and its operation. Salary $6000 to start; increase to $8000 later. India. R-1593.

Jan 11, 1919

By Orr Hamilton

VALUATION of a mine is an approximation of its true cash value which requires the application of fundamental principles of economics. Mines are valued from necessity, for the following reasons: (a) Transfers of titles. (b) Dissolutions of partnerships or corporations. (c) Mergers of mining companies. (d) Appraisals for the purpose of State and Federal taxation. (e) Establishment of the fact of worth as a basis of loans. (f) Determination of values as frequently required in litigation. (g) Listing of stock for sale by a reputable stock exchange. For the majority of purposes a valuation is required as at the present time, but for some purposes valuations as of bygone times may more nearly reflect the intrinsic worth of a mine because its subsequent history can never be, entirely ignored, but valuations made as at the present time are better indicators of cash values. Many mines with great intrinsic worth have been sold for small cash prices. The object of legitimate mine valuations is to deter-mine salable value, or that price in cash at which a transfer of the property from a willing seller to a willing buyer might be consummated, assuming that both vendor and vendee have knowledge of all pertinent data and that the owner, is not forced to sell at a sacri-fice-the definitions of fair market value precluding a forced sale.

Jan 11, 1923

By Rachel De Lucas

Current methods of hydrogen storage are an impediment to the transition of our energy infrastructure from a hydrocarbon to a hydrogen base. The transportation, handling, and storage costs of hydrogen gas account for a majority of its selling price. Magnesium hydride slurry is a safe, environmentally friendly alternative for hydrogen storage. If this form of storage is to be adopted on a large scale, a cost-effective method for recycling the enormous amounts of magnesium hydroxide byproduct must be identified. The solid oxide membrane (SOM) process can be used to recycle the magnesium hydroxide byproduct into magnesium metal, which can be reformed into magnesium hydride and reused for fuel storage. Conventional magnesium extraction/recycling technologies require a great deal of energy and create byproducts that are harmful to the environment and human health. The SOM process poses none of these detrimental effects and requires less energy and feed preparation. The economic viability of a facility that utilizes the solid oxide membrane process for the direct reduction of magnesium must be examined in more detail if industry is to consider it. Cost analysis data related to the commercial viability of a scale-up will be compared to two standard industrial processes: current magnesium production techniques including electrolytic and metallo-thermic processes. We have shown in our cost comparison that the SOM process is cheaper than these traditional techniques and that it is also comparable to aluminum's Hall-Héroult process in cost but with none of the environmentally harmful byproducts.

Jan 1, 2006

By Edward C. Krug

"You are to use the word ... purely for its selling power. It is a name they venerate. As a result, you can use the word ... to ... get [them] to practice, not only without shame bit with a positive glow of self-approval, conduct which, if undefended by the magic word, would be universally derided." (C.S. Lewis, The Screwtape Letters, 1982, p. 162). "We need to tear everything down over a period of time and reconstruct a whole new world, planned top to bottom. "Right now there are just way too many people on the planet [5.3 billion]. `If we had ... an ethic ... we could cut back to 250 million-350 million people. `The United States is ... a bunch of pigs ... the average citizen ... [uses] maybe 70 to 80 times as much as anyone in the Third World.` "The indigenous pople were the ones that were right! I mean, they had their own religion, their own ethics and their own technology. We just went down a wrong road. "So when he says, `We got to rebuild the whole world,' you have no doubt this is serious sentiment .... And it is finally this world view that distinguishes (Ted) Turner as a media mogul and an environmentalist. It is why Worldwatch's Lester R. Brown told me Turner was `truly a visionary. "'(Interview of Ted Turner, Audubon magazine, November-December 1991. On Dec. 28, 1991, Ted Turner was name Time magazine's "Man of the Year." Clearly, media and environmental leadership agree with Turner's openly stated beliefs.)

Jan 1, 1992

By A. Azis

The problem of expressing a nation's mineral resources in terms that convey a sense of economic reality poses a great challenge to those charged with keeping government policymakers informed. A model is presented that can be used to simulate and examine the effects of, for instance, differences in levels of output, transportation costs, mining costs or selling prices on the exploitability and expected order of development of new mineral deposits. The model in its present form can be used to screen, as a first cut, the economic from uneconomic deposits in cases where little or nothing is known about them in detail. To date, this has generally been done - reluctantly - by subjective judgments. This model provides an improvement on the "informed opinion" approach, as it forces those who use the model to be both systematic and explicit in their assumptions. Moreover, the procedure is repeat- able and each step can be defended and justified. Implications can be examined of the uncertainty associated with many of the variables. The model is entirely too general to be of use for actual feasibility studies. It is not useful, in the case of speculative or little-known deposits, to provide a model that has an input format more detailed than the information that is likely to be available. Should the user see a need for it, the model can easily be expanded to allow for the input of more detail or more variables.

Jan 1, 1977

By R. V. Ramani, V. T. Burgos, J. A. McClay

Cost System The cost system reported here is a suite of computer programs which incorporates the logic and information flow structure as outlined in earlier chapters. Specifically, computer programs have been devel¬oped to: 1. compute labor, operating, and capital costs, 2. summarize cost and production data, and 3. compute the minimum acceptable selling price for coal. While the cost system can be executed independently, it is de¬signed primarily for use with the Master Design Simulator and there¬fore must conform to the overall system hardware. The computer model is written in Fortran IV for use with the IBM System 360/370 computers as well as with compatible units such as the Univac 1110 and CDC-6600. For ease in error detection and program modification, the model was constructed with a main routine and eight subroutines. The main routine reads and stores the data necessary for the cost computations and calls the subroutines in logical sequence. The subroutines perform the cost computations and data adjustments for reporting purposes. Each subroutine performs the cost computations for its particular com¬ponent of the cost cycle. The program operations are described in the following narrative outline. Control Subsystem As previously described, the main routine is a passive element, reading and storing input data and directing execution to the active subroutines for cost calculations. Figure 10 is a macro-flow diagram

Jan 1, 1975

Pumping coal to market may help Appalachian coal operators increase their share of the eastern seaboard fuel business. Transporting it by pipeline is already an accomplished fact, but until recently it had to be dewatered to be used in boiler furnaces. The campaign for these eastern markets was begun in earnest last November by the widely publicized announcement of successful plant-scale firing of a central station boiler with coal slurry pumped to the burners. This latest advance makes coal similar to oil and gas in convenience in handling and controlling at the consumption end of the pipeline. Slurry could be considered a new commodity for the fuel market. HUGE POTENTIAL MARKET The heaviest concentration of power plants in the U.S. is along the line Washington, Baltimore, Philadelphia, New York and Boston which makes this region the best hunting ground for selling pipelined coal brought from western Pennsylvania and northern West Virginia. Furthermore, if this region is assumed to consume 125 million tons of coal annually, on a comparable basis, the consumption of oil and gas would be about 180 million tons. Even if all of this fuel is not consumed in central stations, it is still a very big market for coal at the right price. Consolidation Coal Co. and Texas Eastern Transmission Co. are trying to line up customers in this area so that a pipeline can be built. This is not to say that there are not many other areas in the U.S. that could not be supplied advantageously by a mine-to-market pipeline.

Jan 1, 1962

By E. M. Yates, H. M. Hamilton

"For the assent of any new mining project it is essential to determine a realistic value of revenue from the sale of concentrates.A description of the market factors influencing the concentrate terms will be presented along with a detailed review of historical terms of a smelter contract for zinc concentrates. OverviewFor the assessment of any new mining project it is essential todetermine a realistic value of revenue from the sale of concentrates.This applies at all stages of assessment through to the final feasibilitystudy. In forecasting revenue for a zinc mine the followingfactors must be considered:(a) mill recovery and zinc concentrate grade;(b) metal price forecast for all payable metals;(c) smelter terms; and(d) other selling costs.Normally, data from test work are used to determine mill recovery and concentrate grade.Market forecasting, and indeed all economic prediction is an inexact science and probably will always remain so. We have our econometric models our input/output models and a lot of other tools. But they are of no help in predicting the unpredictable. OPEC's huge increase in the price of oil was certainly the most dramatic example of this. It had a tremendous effect on the cost of producing most products world wide and on the price of these products. Any forecasts made prior to the OPEC action were obviously proven wrong."

Jan 1, 1994

By Peter Maltby

A $20M pressure oxidation facility is under construction at the Nerco Con Mine, Yellowknife. Plant commissioning will start in the third quarter of 1992. Roasting of arsenical auriferous concentrates prior to 1970 left 45,000 tons each of highly toxic gold-bearing arsenic trioxide sludge and roaster calcine at the minesite. Safe disposal of these wastes has been a high priority. In 1983 an arsenic trioxide plant was built by the former owner to re-treat the sludge and to sell the product. Due to a poor market and high operating losses, the plant was closed by Nerco in 1989. Mine production in the future will revert increasingly to refractory ore as a replacement for free-milling ore which has been the mill feed since the roaster was shut down. With this fact in mind, Nerco management saw the potential of a proven process to recover the gold from a combined feedstock of refractory flotation concentrate, sludge, and calcine waste. A further requirement was the stabilization of all the arsenic as an insoluble ferric arsenate. By the end of 1989, after the completion of a literature search and a study of process economics, pressure oxidation was selected. Extensive bench and pilot plant work was completed in 1990 and early 1991 to develop the process parameters and to complete environmental testing of the autoclave products. Management approval for construction of a pressure oxidation facility was made in December 1990. Plant capacity is 96 tpd requiring a 40 tpd VSA oxygen plant on site. Detailed engineering began in March 1991. The pressure oxidation building was completed by the end of 1991. The autoclave arrived on site and was mounted on its foundation in December 1991.

Jan 1, 1992

By Alan U. Seybolt

UNLIKE its sister elements, columbium (niobium) and tantalum, vanadium has not been available until recently in fabricated form. While Vanadium Corporation of America has offered the metal in fairly pure form for sale for many years in small lots for research purposes, this grade of vanadium has been brittle, probably because of a high oxygen content. Hence, when in 1950 the announcement1 was made that wrought vanadium was available as a commercial material, this represented a large step forward in the metallurgy of vanadium. While vanadium is generally regarded as a rare metal, data on its occurrence in the earth's crust show it to be as abundant as copper, zinc, and lead combined. Vanadium is widely distributed, but it does not seem to occur in massive deposits except in a few localities, principally in Colorado, Utah, and Arizona, where it is found in sandstone formations, and in Mina Ragra, Peru. Only in Colorado or Peru are ores mined solely for the vanadium content. Ores in the United States are principally carnotite and roscoelite; the former is of particular interest because of its uranium content. It is a uranium-potassium vanadate containing approximately 52 pct of UO2 and 18 pct of V2O5. Production in the United States during the war years averaged around 2000 tons a year, but dropped to 636 tons in 1946. In recent years, ferrovanadium has been selling for about $2.80 per pound of contained vanadium. This suggests that the price of the pure metal will never be as low as $2.80 per pound, but it could

Jan 1, 1953