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By A. J. Richardson

Before the development of the underground stoping and mining costs can be considered, certain facts about the ore body, the proposed mine, markets, etc., must be known or determined. In the case to be studied, the zinc-lead mineralization occurred with a narrow vertically dipping structure of undetermined length and vertical extent. Exploration completed to date has revealed 6.5 mil¬lion st t of proven reserves. A further 820,000 st of in¬dicated reserves has been outlined and this tonnage is considered capable of being expanded by a factor of approximately four after more detailed drilling. After studying the market conditions and completing a very preliminary feasibility study, it was decided that production would be 730,000 stpy (or 2000 stpd) of ore. First year production would be at the rate of 1500 stpd. The main design criteria for the selection of the min¬ing methods are minimizing surface subsidence, maxi¬mum recovery of the ore body, maximum degree of grade control, maximum productivity, and safe working conditions. Two basic extraction systems are considered capable of meeting these requirements: mechanized cut¬and-fill stoping and sublevel long-hole stoping with filling. The primary development system of the mine has been designed to give maximum flexibility in stoping systems and layout and to permit changes if considered necessary as a consequence of actual production ex¬perience. At the present time, access to the mine is by a circu¬lar concrete lined vertical shaft, 16 ft diam, sunk to a depth of 1380 ft. Two exploration levels have been driven within the ore zone at depths of 165 and 1246 ft below the surface outcrop. The development to date had the objective of sampling the mineralization and produc¬ing detailed information on the outline of the ore body and the distribution and controls of zinc and lead values. In an attempt to satisfy the basic design criteria for the mine, it was decided that production would be best achieved by a combination of 40% sublevel long-hole stoping and 60% cut-and-fill mining. Costs of exploration and capital development of per¬manent underground facilities are normally written off over the life of a mine. Production expenditures, on the other hand, are of a temporary nature and are normally charged as and when incurred as an operating expense. Reasonably accurate predictions of mine production costs can be built up from engineering design and estimates of individual mine activities for ultimate inclusion in the comprehen¬sive data required for financial decision making. The simulated operations can be costed on a detailed basis in the form of a monthly operating budget. The budget format can be generalized or detailed, depending upon the scope of the project. However, ex¬perience suggests that a fairly detailed format has the advantage of assuring that all significant cost items are included. For underground costing it is suggested that the budget structure include five major cost centers (i.e. development, diamond drilling, ore extraction, hoisting/ transportation, and general mine expense). These in turn are detailed under numerous subheadings. The mechanism for compiling an operating budget will be illustrated. Because of its relative simplicity, ore extraction under sublevel long-hole stoping has been chosen for illustration. All other activities, simple or complex, can be estimated in similar fashion. BLOCK AND STOPE DEVELOPMENT Long-hole blocks, used where advantageous, will be up to 250 ft in height, depending upon the vertical con¬tinuity of the mineralization, and approximately 300 ft long. Drawpoints will be at 36-ft intervals and serviced by loading crosscuts driven from a footwall drift parallel to and close to the ore zone. Pillars between the stopes will be 50 ft wide. Stopes will be drilled off with vertical rings of blastholes drilled from sublevels approximately 60 ft apart vertically. This drilling will be done by percussion drilling machines (31/2 in.) mounted on a trackless drilling rig. Load¬haul-dump (LHD) equipment will be used to move broken ore from the drawpoints to the orepass connecting to rail haulage systems. On completion, long-hole stopes will be backfilled to prevent caving and to facili¬tate later pillar removal. From a planned stope layout, a forecast of produc¬tion and development is made in Table 1. Table 1. Block Tonnage and Stope Development Quantity Ore Waste Total ore block 375,000 st 2 stopes 310,000 st 1 pillar 65,000 st Access crosscuts, 4 at 100 ft 400 ft Drill sublevel drifts, 6 at 300 ft 1800 ft Stope raises, 3 at 250 ft 750 ft Undercut sublevel drifts, 2 at 300 ft 600 ft Loadout crosscuts at 35-ft intervals 550 ft 100 ft 3300 ft 500 ft Total development footage 3800 ft Tons per ft of development 987 st

Jan 1, 1982

The application of methods using large diameter down holes has become an important facet in both the development and stoping operations of mines within the Aberfoyle group. Holes of up to 98 metres (vertical) and 78 metres (inclined) have been successfully used in stoping operations. A number of rises have been developed to meet ventilation, servicing and escape-way requirements. The most ambitious rise to date has been a..vertical 93 metre long by 4.50 metre square ventilation rise. Although some early problems were experienced, the ultimate successful completion of this rise has enabled the technique to be incorporated with confidence in future mining plans. This paper summarises experience in long hole rising techniques, their evolution from the original cratering concepts, and the approach to further development of these techniques.

Jan 1, 1982

By Terry G. Richard, Sunder H. Advani

A sequence of 250 unconfined compression tests were completed on a common marine shale indicative of the overburden strata of east- central Ohio. The samples were of a light gray clay shale of Pennsylvanian age. The shales considered are obvious layered materials with distinct bedding planes. For this reason there is sufficient evidence to consider this material as anisotropic in nature. With a properly chosen reference coordinate system this anisotropy can be reduced to a layered orthotropic characterization. This implies that the mechanical properties can be specified with regard to principal material directions. With this nature in mind a systematic study of the combined influences of strain rate and moisture conditioning was initiated. Of particular interest is the variations in unconfined ultimate compressive strength with variations in the controlled parameters of strain rate, moisture conditioning level and direction of testing. Results of this particular phase of the program are presented.

Jan 1, 1982

By G. C. Amstutz

The topic of the industrial applications of mineralogy is a vast field which can be adequately covered only in a large book or by a two or three semester course. This paper recalls experiences of the writer in this field, a task requested by the Process Mineralogy Committee. Therefore, this paper is largely an account of the industrial mineralogy problems I was involved with, since my student years, Although I will treat each application only briefly, it is hoped that they will illustrate to the students in the field how varied are the applications of mineralogical methods. In this respect, I want to emphasize that it is important for mineralogy teachers to point out the usefulness of mineralogical methods much more often in their courses. Not only does that help prepare young individuals for industrial careers, but also it arouses their feeling of consciousness of public responsibility which is an important attribute for the world's scientists. When professors utilize the varied applications in their teaching of mineralogical methods students then understand better the significance of learning those methods and appreciate the many years of necessary university preparation. The first time I was involved in an application of mineralogical methods was about 1944 as a student of Professor Paul Niggli. He was asked to study the problems of ice crystallization on wings of airplanes. The ice formed at high altitudes and during the winter. This was not outside his realm of expertise because he was the main initiator of the Snow Research Institute on the Weissfluhjoch in Switzerland. I believe that the work of this Institute was an important factor in stimulating much of the snow research subsequently carried out at the United States Army Snow Research Center, which was located at that time in Willmette near Chicago. Dr. Bader, one of Paul Niggli's former students, was the Director of Research at Wilmette at that time and for quite a number of years thereafter. A mineralogist-crystallographer can make important contributions to a better understanding of the problems of snow and ice formation, avalanche hazards, and the prevention of hail. The habits of snow crystals are essentially a function of the temperature and the humidity,

Jan 1, 1982

By James H. Boettcher

INTRODUCTION A complex interaction of worldwide economic and political forces is increasingly requiring 3 primary participants for the successful development of large natural resource projects in developing countries. They are the host government of the developing country (the "host government"), one or a consortium of international natural resource companies, (the "Resource Company") and one, or more likely, a syndicate of international lenders. The host government typically controls the rights to its country's natural resources and establishes the economic ground rules for their development. However, because of worldwide inflation and the depletion of easily accessible, high-grade resources, the nominal and real capital development and operating costs of projects have been spiraling. Moreover, the depletion of high-grade and mineralogically uncomplicated resources also raises the technical and operating risks associated with resource recovery. Thus, despite increasing political self-consciousness and economic nationalism in developing countries, international resource companies are still often necessary project sponsors since they can provide, among other things, the required technical and management expertise and equity capital. The presence of these factors, and often the addition of worldwide market access in a project, is often critical in determining whether or not the project will be considered creditworthy by international commercial lenders. The international commercial lender is often the critical third party in project development, due in a large part to the ever escalating-costs of project developments relative to the financial resources of many companies and even a growing number of countries. In addition, lenders have other reasons for taking more than a passive interest in all aspects of a project's development. These reasons include the following: 1. Projects are often financially structured such that the primary security for a loan, once completion and performance standards are met, is the cashflow of the project rather than recourse to its sponsors. 2. Lenders, in addition to the "project risk" just described, are frequently asked to assume various elements of "political" risk which nay put them in a sensitive economic position between the host government and international resource firms (This is discussed later). 3. International banks today have large loan portfolios of developing country debt with final maturities ranging from one to fifteen years. The various current projects undertaken are the building blocks of most developing country economies that will hopefully contribute to the long run economic development of a country as well as generate the foreign exchange necessary to repay foreign loans in the future. In this regard it is useful for lenders to realize whether a given project "makes sense" in terms of a country's natural resource endowments and competitive advantages over other countries. The type of framework discussed in this article would help lenders to better make such assessments. In order to facilitate the continued international flow of capital and technology to developing countries and of readily available supplies of raw materials from them, it is important for each of these three parties to increase its awareness of the goals and objectives of the other parties as well as the bargaining process that results in the legal, financial, credit and fiscal structures by which a joint venture project ultimately proceeds. Each of the parties faces increasingly complicated accept/reject decisions when they are faced with difficult choices among. a wide range of alternative structural combinations each of which has different implications for risk and reward to them. Therefore, by increasing the mutual, 3-way awareness of the decision processes of the other parties, it should be possible to: • provide better information and results in the formation of more rational expectations by all parties going into negotiations, • facilitate the project formulation process by allowing parties to focus more clearly on the areas of common interest and conflict, • result more frequently in final structures and agreements that better reflect the economic and political realities associated with a project and thus • result in more creative, innovative agreements that should reduce the need for changes to them and thus promote the kind of long run political stability conducive to attracting capital and further investment.

Jan 1, 1982

By W. R. Dengler

INTRODUCTION Shaft sinking represents a relatively small proportion of the activities involved in mine development. Because of this limited utilization, shaft sinking has been one of the most difficult functions to mechanize. Although shaft machines (muckers) were introduced more than 30 years ago, the first machines were low-capacity units, and machines of this type did not gain wide acceptance by the mining industry until the late 1950s. However, the increasing depth of underground mines and the es¬calating costs of labor have increased the benefits obtain¬able from high-speed shaft sinking. The result has been a growing need for high-capacity shaft machines. Most of the machines available at the present time have been developed by modifying existing equipment to increase the payload capacity and performance. AVAILABLE SHAFT MACHINES In general, shaft machines may be classified accord¬ing to the types of digging mechanisms and the mecha¬nisms of operation. The available digging mechanisms include clamshells, cactus grabs, front-end buckets, and backhoes. The mechanisms of operation can be classified as either pneumatic or hydraulic. Selection Criteria For efficient operation, the primary consideration in selecting a shaft machine is its capacity. The minimum capacity of the machine should match the capacity of the hoisting system at the ultimate depth of the shaft. In many cases, two machines may be needed to obtain a sufficient mucking capacity. The shaft dimensions and configuration often dictate the type of machine that may be utilized; for example, an overshot loader does not work well in a circular shaft that has a diameter of less than 5.5 m (18 ft). Similarly, a single Cryderman mucker is not suitable for a large-diameter shaft, nor is it applicable where very high sinking buckets are to be used. Other factors for consideration include the degree of material fragmentation, the abrasiveness of the rock, and the amount of ground water that is inter¬sected. Machine Descriptions Riddell Mucker: The Riddell mucker, illustrated in Fig. 1, was first introduced in 1948. This is one of the most common shaft machines in the medium-capacity range. The Riddell mucker consists of a hoisting and traveling mechanism that operates a clamshell suspended on cables. The early machines operated with a 0.3 m3 (10 cu ft) clamshell and had an hourly capacity of approximately 27 t (30 st). This type of shaft machine has gained wide acceptance throughout North America. Essentially, the Riddell mucker consists of standard components, such as the pneumatic tugger hoists that operate the clamshell. The carriage is suspended on rails that also serve as the blasting set, located immediately below the shaft timbers. To effectively position the clam¬shell in the shaft, the operator controls the carriage travel by means of wheels that are driven by a pneu¬matic motor. The Riddell mucker most commonly is used in rec¬tangular timbered shafts. However, some units have been installed with circular rails, allowing them to work in circular concrete-lined shafts. A popular practice with many Riddell muckers is to increase the capacity through the use of larger clamshells, often ranging up to 0.76 m3 (1.0 cu yd), in conjunction with more powerful tugger hoists. In some large rectangular shafts, two Riddell units have been used side by side to achieve a sufficient capacity. Cryderman Mucker: The Cryderman mucker, illus¬trated in Fig. 2, is another common shaft machine in the low- to medium-capacity range. Developed in the early 1950s, it also has gained wide acceptance throughout North America. Equipped with a 0.3 m3 (10 cu ft) bucket, the Cryderman mucker has an hourly capacity of approximately 23 t (25 st). The Cryderman mucker is operated entirely by means of pneumatic cylinders and a pneumatic telescopic boom. The boom is suspended from a sectional frame¬work that is usually located at one end of the shaft. The framework or headframe can be suspended from an independent hoisting system located either on the sur¬face or in the shaft. In large shafts of either rectangular

Jan 1, 1982

By D. J. Lachel, Douglas E. Hansen, Bruce Kennedy

The very high cost of exploration and development for new mines requires that a carefully planned, complete, and technically competent geotechnical evaluation be applied to the ore body and the surrounding rock. The ground conditions must be predetermined sufficiently so that, during the development and exploitation stages, unexpected conditions will be of minor consequence. Ground conditions are a major factor affecting the cost of excavated items such as shafts and inclines. For example, shafts cost less to sink in tight dry ground than in highly pervious ground below the water table, with all other factors being equal. The proper mining methods also is dependent upon the ground conditions. Bad ground for room-and-pillar mining may be ideal for caving methods; whereas, ideal ground for room-and-pillar mining would be extremely difficult for a caving operation. To do a proper engineering design, the parameters of strength, deformability, and permeability must be determined, in addition to the loads that will be applied as a result of the mining activity. The required degree of accuracy for each parameter depends upon the individual case. For example, the strength of massive rock in which openings of small cross-sectional area are to be driven at shallow depths needs to be resolved only within several thousand kilopascals (pounds per square inch). Under such conditions, the rock strength is not likely to be of great economic importance unless the rock is very weak. Large openings at great depths require a much more accurate appraisal of rock strength and deformation characteristics. Ground water conditions are important at any depth. Today, a number of techniques exist for evaluating conditions before opening up the ground for development. These techniques and their applications are described in more detail later in this text. The evaluation of ore body ground conditions should start at an early stage, as soon as the deposit has been proven viable for a mine. Economic geology investigations mainly serve to define the value and limits of the ore deposit. To do this properly, the geology of the site is determined in at least as much detail as is necessary to define the "controls" for the ore body. The ground-condition evaluation must determine the engineering properties of the ore body and the surrounding material. This includes the structural geology as it relates to rock strength; i.e., the frequency, extent, and orientation of discontinuities such as faults, joints, bedding, etc. Ground water conditions also must be determined. It is important that the detailed geology of the site be determined at an early date. Reasonable geotechnical parameters must be established during this time period, so they can be used in mining model studies that include both physical and mathematical models. The ultimate goal bf-the geotechnical evaluation is to predict the ground behavior as the excavations are made and how the ground behavior will affect the safety and economic well-being of the mine. The formulation of a ground-condition evaluation program should be planned carefully to determine the particular geotechnical parameters only in as great a detail as will have a bearing on the mine design. For instance, it is not necessary to make numerous triaxial tests in strong rock when the mining will be conducted within a few meters (feet) of the surface in a regime of gravity loading and an absence of tectonic stresses. Similarly, it is not necessary to invest large amounts of time and effort in the determination of joint strengths if the orientations of the joints are such that the failure could not occur along them. Generally, the determination of ore body ground conditions can be divided into four main steps: 1) The general and structural geology of the site must be determined; this is determined primarily during the economic evaluation. 2) The material behavior characteristics of the deposit and the vicinity must be determined. 3) The ground water hydrology of the deposit and the vicinity must be determined. 4) Miscellaneous ground support considerations must be established. Gross features are defined first, followed by a series of increasingly detailed investigations. Specifically, the geology study should start by utilizing techniques such as remote sensing, topographic map interpretation, geologic mapping, etc. After the gross features, such as major faults, have been delineated, the studies are directed toward defining the more detailed elements of jointing, rock strength, ground water hydrology, and other characteristics. This information is used to formulate an assessment of the strength of the ore body and the surrounding rock. Finally, all of the gathered information is integrated to make an assessment of the rock behavior in relation to the types of openings, the excavation methods, the support requirements, etc., that should be used for the rock conditions that are present. The mine design and the geotechnical assessment should be an iterative process. General conclusions about the rock conditions will dictate a type of mine plan. The specific mine plan then should be modified by specific geotechnical considerations. For example, an initial assessment may conclude that the ore body is strong and that a strong rock unit is present over the ore body. Thus, one definite possibility is to mine the deposit by room-and-pillar methods. However, subsequent investigations may reveal faults through the deposit, requiring relocation of the mine openings so that pillars and other structures are in sound rock. In other words, the final mine plan should be compatible with the geotechnical aspects of the ore body.

Jan 1, 1982

By J. Wong

We report a successful use of x-ray absorption spectroscopy to probe the chemical and structural environment of trace elements in coal. When applied to vanadium in coal, it was found that vanadium exists in at least two environments: a trivalent site 6-fold coordinated by oxygens at ca. 2.0~ and a tetravalent site 5-or 6-fold coordinated also by oxygens, one of which forms a short V=O bond at ca. 1.6a. No evidence of nitrogen (porphyrin)1'or sulfide environment was found. It was also found that the vanadium environ-ments in the raw coal did not survive unchanged in a liquefaction process. These findings have implications for coal cleaning processes and for trace element release into liquefaction process streams.

Jan 1, 1982

By Randal J. Barnes

Computer based techniques for solving the Ultimate Pit Limit Problem have appeared in mining literature since the early 1960's. The majority of papers pertaining to this subject can be partitioned into one of two categories: discussion of the pros and cons of a particular algorithm, or a case study presenting specific applications of an algorithm. Subsequently, there has a1 so been considerable debate concerning the best techniques between, essentially, two camps: those favoring the moving cones techniques, and those favoring the techniques which yield true optimal pit designs. The purpose of this paper is not to add to this debate, but rather to present a few new ideas (partially a new look at an old idea), which can be easily implemented to noticeably improve any ultimate pit limit approach independent of the particular algorithm used. These ideas fall under the heading of "bounding the optimum" (Barnes and Johnson, 1980).

Jan 1, 1982

By Robert L. Grayson

An application of goal programming (GP) in evaluation of proposed purchases of major mining machinery is presented. It incorporates historical operating data compiled on mechanical delays to production time. The goal programming technique, which is an extension of integer programming, is used to maximize an objective function. The objective function combines the capital budgeting evaluation methods of net present value, payback period, profitability index, and total net earnings as goals weighted according to a management preference. The GP method gives an optimal solution to a multiple-goal problem. A sensitivity analysis is performed to determine the effect of an increased production forecast or a tightened budget on proposal selection.

Jan 1, 1982

By Herbert R. Babitzke

The Minerals Availability System (MAS) was formally established by the Bureau of Mines in May 1975 to provide current appraisals of the engineering and economic availability of nonfuel minerals for consideration in the formulation of both domestic and foreign minerals policy, Domes- tic mineral property reports are developed by the Bureau's four Field Operations Centers, and foreign data are obtained under contract. This site-specific information is subsequently subjected to engineering verification and economic evaluation, and the results are analyzed and published as Minerals Availability System Appraisals. The deposit-specific data are also entered into the computerized MAS data base, where a subset of this information, the Mineral Industry Location System (MILS), is available to the public in the form of computer graphics and listings. Other MAS products are also described. The Bureau's MAS personnel are frequently involved in special engineering and mineral economic projects for other Federal and State agencies. MAS personnel also work closely with the private sector, both in the area of mining and processing cost estimation, and as a source of nonproprietary mineral deposit information.

Jan 1, 1982

By Deborah A. Kopsick

Several minerals were observed and collected in a small gully originating from a weathered coal processing waste (gob) pile in Barton County, Missouri. The rapid alteration of these various minerals after collection suggested that they might represent a dehydration sequence. X-ray diffraction of the dehydrated and rehydrated minerals deposited on the gob pile indicated the presence of the monohydrate and heptahydrate forms of ferrous sulfate, szomolnokite and melanterite respectively. The occurrence of melanterite (FeSO4.7H2O), was limited to isolated areas of ponded water while szomolnokite (FeSO4.H2O), was associated with the outwash areas of the pile. Laboratory dehydration of melanterite collected at the gob pile revealed the formation of rozenite (FeSO4.4H2O), an intermediate form of ferrous sulfate. Szomolnokite was shown to be the stable form of these ferrous sulfates during these experiments while melanterite and rozenite were shown to alter readily. Chemical analysis of szomolnokite revealed enrichment in Fe, Mg, Zn, Cd, Cu and Mn relative to the chemical composition of the gob ad the lechate generated from the gob wastes. Although this gob pile had been weathering for more than 35 years, significant concentrations of trace metals were still being released from the pile through the generation of leachate and the formation of various soluble metal enriched ferrous sulfate minerals.

Jan 1, 1982

By John W. Chang

Introduction Automatic control of primary ball mill circuits has received much attention over the past decade, primarily because its advantages ultimately can be translated into economic terms. Apart from such obvious benefits as improved product quality, increased throughput, and more stable operation, less direct benefits such as easier operation, more orderly maintenance scheduling, and timely management reports all can be realized with the application of modern automatic process control equipment and techniques. Software configurable digital computer-based control systems offer ease of change in control strategies. Occasional control strategy changes are necessary whenever control objectives change or circuit modifications occur. The dependency of control strategies on control objectives and circuit equipment to effect optimal circuit operation is an important, but often neglected issue. Because of the potential for even better control, research and development work continues. [See (Ulsoy & Sastry, 1981) and (Hulbert & Braae, 1981).] Some of the possibilities are discussed later in this presentation. A few preliminary remarks may be in order concerning the relationships among control objectives, control strategies, and circuit equipment. Generally accepted control objectives for primary ball mill circuits include: 1. Maintaining a desired percent solids in the mill. 2. Maintaining a desired measure of particle size distribution at the cyclone overflow. 3. Maximizing throughput. Control Objective I is a requirement for proper operation of the ball mill, especially if it is a grate mill. It concerns smooth movement of material through the mill. Control Objective 2 is a product specification - one of the requirements for proper flotation operation. Control Objective 3, an expression of the desire to get the most out of the circuit, is the easiest to evaluate in economic terms. It assumes that the processes downstream

Jan 1, 1982

By Charles W. Perry

The options of enhanced oil recovery, coal syncrude, and shale syncrude are compared by approximately equivalent economics. The physical constraints for the major enhanced oil recovery processes are described, followed by new estimates of cost. The range for all three options in terms of light syncrude equivalent are $22 to $40 per barrel in 1980 dollars.

Jan 1, 1982

By Mark E. Gershon

A mixed-integer formulation of the mine scheduling problem is discussed and applied for the purpose of optimizing both the mine production sequencing and the mill blending and processing problems simultaneously. Previous attempts at solving these problems separately, although successful, fail to take into account the interrelationships between these problems. Project structure serves as the outline of this paper, which is directed towards a mining engineering audience. Generalized in its organization, this concept is useful for long, intermediate and short range scheduling. Actual applications are mentioned which show that the concept is also applicable to mining a variety of ores.

Jan 1, 1982

By William B. Coker, Vladimir J. Sopuck, J. S. Fox

"Preliminary investigations indicate that organic lake sediments offer some potential for gold exploration within the Canadian Shield of northwestern Saskatchewan. It is also apparent that certain precautions must be taken.Gold is primarily related to the organic fraction of the lake sediments, which, although giving consistant Au contents to those sediments, may restrict the dispersion of Au within the lake itself. It may be necessary to carry out selective extractions on the lake sediments to differentiate between Au related to organic sequestration, indicative of hydromorphic and/ or chemical dispersion, and Au related to inorganics, indicative of mechanical dispersion.Lake sediments are probably only of use for very detailed exploration (i.e. every lake). One to three samples per lake should be appropriate, although a single centre-lake organic-rich sediment sample may be adequate in very small lakes. Each lake sediment sample should be analyzed at least twice and the analytical data carefully monitored and evaluated.The use of As in lake sediments as a pathfinder element for gold is applicable in the search for certain types of gold occurrences.Following detailed lake sediment sampling, basal till sampling can possibly be used to localize areas of potential gold with or without base metal mineralization."

Jan 1, 1982

Australia is tightening its rules governing mineral processing and the purchase of rural land by foreign investors" Rural land purchasers in the future will have to demonstrate to the Foreign Investment Review Board, the applicable governing body, that they will introduce new techniques or developments that will benefit Australia. In mineral processing, the criterion will be the availability of maximum opportunities for Australian equity capital. The changes are designed to discourage absentee landlords and speculators from abroad. A diamond field discovered several years ago in the northern section of Western Australia, known as the Kimberley region, is now thought to be one of the largest in the world, according to Conzinc Riotinto of Australia Ltd. (CRA). Figures released late in 1981 by CRA indicate that the main orebody of at least 100 million metric tons contains possibly 500 million carats of diamonds with a conservative market value of $8 billion. The diamond stones in the 100-acre deposit are about 10% gem-quality, 30% near gem, and 60% industrial. Initial production is expected to be about 17 million carats annually, which could be expanded to 25 million carats annually. World production of natural diamonds has been about 40 million carats per year from a reserve base of about 700 million carats.

Jan 1, 1982

By Ernest Koenigsberg

In 1961 Lerchs and Grossman presented a method, based on graph theory, to determine the optimum ultimate pit limits for an open-cast mine. At the same time they demonstrated a dynamic programming algorithm for the optimum pit limits for a two-dimensional open-cast mine. Since then many methods for determining optimum limits for three-dimensional mines have been programed, and even more have been reported in the literature. The methods include computer "simulation" of the manual methods used by engineers, the development of sets of conic sections and fitting to exclude overlap, integer linear programming (and its equivalent network flow model), and dynamic programming. Many of the methods do not guarantee optimal solutions but seem to satisfy the user. Other reported methods have never been applied, partly because they did not yield optimal solutions. We have developed a three-dimensional dynamic programming algorithm which requires a single pass through the data. Large problems can be solved on a small computer because only a small part of the data is required at any time. In this paper we will review the state of the art and to demonstrate the connection between linear programming (and network flow) models and the dynamic programming method.

Jan 1, 1982

Despite modest improvements in the performance of domestic interest rates and gross national product,1 fixed investment in domestic producers' durable equipment continued to weaken during the second quarter of 1982 and declined at a 12.8 percent annual rate compared with the first quarter.2 Large declines occurred during the second quarter in expenditures on many of the major mineral-consuming industries such as aircraft, computers, agricultural and construction machinery and mining and oil field equipment. These data appear to be consistent with the low level of business investment plans for 1982 reported in the DOC's Bureau of Economic Analysis survey of expenditures on new plant and equipment.3 Domestic and foreign industrial production and mineral industry production activities continued to decline in the most recent period because of weak demand conditions (Tables 1 and 2). The U.S. mining production index declined 7.7 percent between April and June as compared with 1.2 percent for total U.S. industrial production (Table 1).

Jan 1, 1982

By James W. Baxter

State geological surveys promote sound procedures for evaluation of mineral resources before development-procedures that protect the environment and accrue maximum benefit to citizens. Sophisticated laboratories have been equipped for geophysical, geochemical, petrographic, and mineralogic characterization of materials to assist citizens in land-use planning and optimum development of natural resources, activities clearly within purview of the state. Proper use of these facilities in support of exploration in a competitive, free-enterprise system should be based on achieving ultimate benefits to the public, but, in general, should not entail competition with commercial laboratories.

Jan 1, 1982