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By Ronald M. Hays

During the twentieth century the Mesabi Range in northeastern Minnesota has been the major source of iron ore for American steel mills. The Mesabi Range extends along an iron bearing outcrop known as the Biwabik formation. This outcrop is some 120 miles long and up to three miles wide. The formation is from 200 to 650 feet thick and dips 5 to 10 degrees to the southeast. The iron content of the original Biwabik formation was quite uniform, but much of this formation has been subjected to alteration. Thus major variations in iron content and mineral composition exist both laterally and vertically in the present Biwabik formation. The remaining unaltered iron formation includes the magnetic taconites which are commercially processed by Reserve Mining, Erie Mining, Eveleth Taconite, National Steel, Butler Taconite, and U.S. Steel. These six operations have a capacity of 32 million tons. per year of iron pellets and have produced approximately 170 million tons of pellets since 1956. Capacity for another 30 million tons per year of pellets is being considered by the industry for the next ten years. This increase will be obtained by construction of new plants and expansion of present operations. Thus by 1977, it is estimated that approximately 60 million tons per year of iron pellets will be produced from magnetic taconite on the Mesabi Range. The portions of the Biwabik formation subjected to intense alteration resulted in the direct shipping, wash and heavy media ores. Since 1892, 1.8 billion tons of direct shipping ore have been shipped from the Mesabi Range. This ore has been the major source of iron for American steel mills. In 1966, 12 million tons of direct shipping ore and 18 million tons of wash, jig, heavy media and other gravity concentrates were shipped from the Mesabi Range. These products generally have poorer physical and chemical properties than the iron pellets produced from magnetic taconite. It is predicted that the shipment of these materials will decrease from about 30 million tons in 1966 to 6 to 8 million tons in 1975. This decrease will be due to depletion of reserves and poor quality product.

Jan 1, 1968

By Brian W. Mackenzie

The mine development decision is made on completion of exploration to determine whether or not a mineral deposit should be developed to production and, if so, how. This involves the selection of an optimum mine development alternative from a number of technically feasible alternatives and the comparison of this optimum with those of other available investment opportunities. If the optimum is sufficiently attractive, the deposit is developed to production. The selection process is carried out within a framework of corporate objectives and resources. The mine development decision is based on the balancing of two parameters - - rate of production as reflected in plant capacity and cut-off grade. On the basis of available information and experience, detailed revenue and cost 'estimates are made for each feasible combination of plant capacity and cut-off grade. What economic evaluation techniques should be applied to these estimates to reduce each alternative to economic indicators that will enable meaningful comparisons and an informed investment decision? This is the essence of the paper. The determination of optimum plant capacity and cut-off grade has been the subject of intensive research efforts by economists and mining engineers (1-7). Their studies are based on marginal analysis and assume that, at the time of decision, certainty conditions prevail with respect to ore reserves, mining costs and mineral markets. The optimum mine development alternative is defined as that which maximizes profitability.

Jan 1, 1969

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By C. N. Bailey

Let's review the economic factors in mill design. Talking about engineering economics in mill design reminds me of an old' saying "There are several ways to handle women but nobody knows what they are." I'm sure that the same economic factors do not apply to each of our mill designs, but for the sake of emphasis, it is well to review a few of them. They are so simple that we are apt to feel they are not important. Other speakers today are talking about the engineering factors of mill design, but I'm asking the question "Have we checked the economic factors involved in these designs? Have we checked the obvious? Many great discoveries have resulted from analysis of the things that appeared to be obvious all the time. What are some of these economic factors? Perhaps the most basic one is simply the value of minerals in place if minerals have value in the ground, they have value only because many important and different considerations add up to the probability that the minerals can be mined, beneficiated and disposed of profitably. The size formation and quality of the ore body, the distance from market, and the transportation available to the market area, depreciation rates, taxes, and the ownership interests involved are but some of the factors that must dovetail into the answer of profit, an answer prerequisite to hoped-for financing.

Jan 1, 1961

By L. E. Garner

Aggregate resources should be considered primary factors in urban development. Resource planning is essential because land values, previous construction, or zoning restrictions often preempt exploitation of aggregate deposits within an urban area. Sequential land use practices allow development of areas prior to urban development. Population and aggregate consumption trends in Austin, Texas, indicate that substantial quantities of reserves will be lost to future development. Aggregate materials are present in nearby seas. However, a comparison of transportation and reclamation costs indicates that reclaiming land after mineral extraction can be significantly cheaper than transporting materials longer distances.

Jan 1, 1979

By H. S. Kibler, A. E. J. Gallagher, J. J. Sebesta

A review will be made of the nature, value, costs, and factors associated with industrial minerals production in general. Comparisons will also be made between some of these data and similar criteria for metallic mineral production.

Jan 1, 1987

By A. E. J. Gallagher

There are many influences which have a bearing on the economics of industrial minerals production. The purpose of this paper is to discuss briefly three factors which have economic significance in the production of these mineral commodities. The three items of discussion include 1) the nature and relative value of the industrial minerals group, 2) project planning, and 3) market analyses. General aspects of these factors are familiar to most of us. However, an attempt will be made to give some current details regarding each. Also, in reality, project planning and market studies are usually so closely associated that they will be discussed jointly, rather than separately. This will be done by way of examples which show how these two activities actually evolved for two industrial minerals projects.

Jan 1, 1984

By R. L. Neman

Southern Oklahoma (including the Arbuckle Mountains) has outcrops of rocks representing Precambrian, Paleozoic, and Cretaceous ages. Thus, rocks of every geologic age in the Paleozoic and Mesozoic Eras, except the Jurassic and Triassic Periods, are present in south-central Oklahoma. With rocks of such an enormous age range present in a relatively small geographic area, it is little wonder that a wide variety of economic rock and mineral resources are locally present. This report will describe the occurrence, mining, processing, and end-uses (dictated by chemical and physical properties) of the Precambrian Troy Granite, the Cambrian Royer Dolomite and Fort Sill Limestone, Ordovician silica sands of the Simpson Group, Ordovician limestones of the Viola Springs and Welling Formations, and Ordovician Sylvan Shale. In general, the more the end-use depends upon chemical composition and purity, the greater the price that can be demanded for such-minerals. The not-so-successful attempts to mine zinc, manganese, copper, and iron from the Arbuckle Mountains also will be discussed briefly, and I will provide a sermonette on analytical chemistry and its usefulness to corporate CEOs. I may be one of the few persons at this Forum on the Geology of Industrial Minerals who is not a professional geologist. I am an analytical chemist specializing in geochemistry. In particular, I investigate trace elements in rocks and their consequences in industrial processes. As such, I have consulted to the mining industry (and their clients) for two decades, always with the intent of improving service and product quality.

Jan 1, 1999

By V. F. Hollister

The Ivanhoe district, Elko Co., Nevada, is located in the northern part of the Carlin trend of epithermal gold-deposits, but it differs from most mines in the belt in that Ivanhoe epithermal gold ores are found in 14 m.y. old Tertiary volcanic rocks as well as in the better known Paleozoic sediments. Within the Ivanhoe district U.S. Steel (USX Corp.) discovered and partly developed an epithermal gold deposit largely hosted by Tertiary rocks that, with a 167-hole program, was found to contain an open ended probable reserve of 4.0 million tons of heap leachable open pit oxide ore averaging .042 opt Au. An additional 4.0 m.t. of open pit sulfide ore averaging .048 opt Au were also developed. The U.S. Steel orebody was a blind discovery in that it just barely outcropped, and it was found by drilling through a premineral but barren cover of altered Tertiary volcanic rocks.

Jan 1, 1988

By T. E. Garnar

Heavy mineral mining has been a small, but important Florida industry over the past sixty years. Early geologic history of each deposit is similar up to point of deposition in alluvium, deltaic sediments, or along shorelines. Later geological development through reworking and concentration is different for each deposit. The Trail Ridge deposit was formed by reworking Citronelle sediments of the Lake Wales ridge. Post depositional leaching of iron from ilmenite makes Trail Ridge an important source of titanium minerals for TiO2 pigment manufacture. Research leading to the separation and sale of by-product heavy minerals from Florida deposits has been important in maximizing profitability. Advances in mineral dressing technology will lead to future mining of lower grade reserves. Future needs for heavy minerals seem certain to expand, with increased activity in exploration and development of mining operations.

Jan 1, 1972

By Jerome F. Machamer

Ninety percent of manganese is used as an alloying element in steel. Smaller amounts are used in dry-cell batteries, in aluminum and bronze alloys, and many other uses. The element has several oxidation states, and oxidation-reduction reactions control its chemical behavior. Manganese, in primary minerals such as rhodochrosite, rhodonite, and braunite, is in a divalent oxidation state, and manganese in secondary minerals, such as pyrolusite and cryptomelane, is in a quadrivalent state. Virtually all manganese ore production comes from three types of sedimentary manganese deposits. First, lenticular beds of manganese carbonate or carbonate-silicate rock in Early Precambrian volcano-sedimentary complexes in South America and Africa have been major sources of manganese ore. Second, laterally extensive beds of mangano-silicate and manganiferous carbonate minerals in certain banded iron formations are major sources of commercial ore and constitute the largest resource of manganese. Finally, manganese accumulations deposited in marginal to epicontinental basins are the largest source of current manganese ore production. Residual deposits resulting from the destructive weathering of rocks with a low manganese content have been, but are no longer, important sources of manganese ore. Most deposits have been altered to some extent by super- gene oxidative processes, and are economic because of that alteration. Outcrops of manganese ores are invariably oxidized and can be very deceiving as to the character of the underlying material. Nearshore facies of epicontinental basins, and nearshore age-equivalents of metalliferous black shales are among the targets for new manganese exploration. Very high-grade manganese occurs in sedimentary deposits altered by metamorphic and metasomatic processes.

Jan 1, 2001

By Richard M. Chamberlin

Perlite is an altered rhyolitic glass with 2 to 5 wt % water that expands or "pops" when heated quickly to plasticity while evolving steam to form lightweight, glass foam. Commercial perlite deposits in New Mexico are well-developed zones of chemical weathering (hydration) superimposed on highly permeable and thick glassy zones at the chilled upper surface and toes of high-silica-rhyolite lava flows and lava domes. The maximum tonnage of glass in these volcanoes was predetermined by their unique eruptive histories. New Mexico perlite production (80% of US production of 571,00 st) is mostly from the 3.9 Ma high-silica-rhyolite lava flows at the No Agua Peaks volcanic center. The primary vent at No Agua is defined by a 900 ft-high rubidium-rich composite lava dome, known as West Peak, that contains minor perlite reserves. Slightly less rubidium-rich lava squeezed out from under the west flank of the dome to form relatively thin (250 ft) but highly vesicular lobate flows that now consist of about 50 % recoverable perlite. Finally, rubidium-poor lavas were extruded from a radial dike on the northeast flank of the dome. These thicker (400 ft) flow lobes contain about 20 % recoverable perlite. The largest mass of lava does not always contain the most perlite. The thinner (west) flow at No Agua yields the largest perlite reserves rather than the large composite lava dome or thicker (east) flow.

Jan 1, 1994

By M. A. Alan

The Bellavista Gold Deposit lies 75 Kms north west of San Jose, the capital of Costa Rica, Central America and 3 Kms north east of Miramar, in the Province of Puntarenas. The total road distance from San Jose to the deposit is 120 Kms all paved road except for a 2.5 Km graded, gravel road on the property (Figure 1). Infrastructure services in the Miramar-Puntarenas area are well developed with electrical power distribution, a modern port facility and community services being available. The deposit lies on the south west flank of the Tilaran Mountain Range between an elevation of 550 and 800 meters above sea level. The local topography is steep, originally covered with pre-montaine, tropical wet forest vegetation which has been largely destroyed due to clearing for cattle grazing. The annual rainfall is approximately 2,950 mms, 90% of which occurs between May and October.

Jan 1, 1992

By F. Harold Weber

On July 13, 1967 the San Bernardino County Planning Commission approved publicly a request by American Smelting and Refining Company for a zone variance to conduct a silver mining and milling operation in the Calico district, southern California, Coincidentally, on July 14 the U.S. Treasury halted its sales of silver, and the U.S. free market price quoted rose immediately from $1.30 to $1.77 per ounce. In its request to the commission Asarco stated that about 13,500 to 15,000 tons of rock would be moved daily by surface mining, including 7,000 tons of ore. The ore would be crushed to minus three-quarters inches and the silver recovered "by a chemical process." The grade of the ore was not given, but the company said that it might also recover barite as a byproduct, The operation would employ 150-160 people. Additional activity in the district includes exploration programs by Superior Oil Company and Calico Silver Mines, Ltd. History and production: In retrospect, as the price of silver began to rise in 1961 from 91 cents an ounce, and as Asarco began its exploration program in late 1964, a new era for an old bonanza silver district would seem to have begun. The Calico district has been mined for silver only on a very, very small scale since 1882 to 1896, when an estimated $12 to $20 million (perhaps 15 to 20 million troy ounces) of that metal was produced from the 50-odd mines of the district and vicinity. These mines include the Silver King, Oriental, Waterloo, Garfield, Odessa and Waterman (which is about 8 miles west of the district). Much smaller-valued amounts of barite, gold, lead, and copper also have been produced from the ore deposits of the district; and from 1884 to 1907 the region yielded about $9 million worth of borate minerals.

Jan 1, 1967

By Thomas W. Mitcham

A program of geological research in support of mineral exploration efforts is outlined. Specific goals are stated, approaches to accomplish their attainment are described, and the type of useful results to be expected are outlined. Because mineral exploration or prospecting has intensely practical goals, research in support of it must be applied research, applied to the problem of maintaining or increasing the discovery rate of the exploration effort. To attain research goals, attention to personnel selection, group structure, and program are critically important, and in about that order. A large percentage of the professional personnel should have had experience in mining geology or mineral exploration, and they all should be prospector-oriented. Structuring in the group should be at a minimum, with wide allowance for the kind of independent research which is essential to the nurturing of on-target creativity. The program should be field-oriented, and it should include a wide representation of those subdisciplines of geology which are applicable to mineral exploration. The types of results to be anticipated include improved or new conceptual models for various types of orebodies and their settings from which new ore guides can be derived, new exploration techniques, and the development of a knowledge bank for various aspects of the exploration effort.

Jan 1, 1968

By Wayne Hilgedick

Peabody Coal Company is the nation's largest producer of coal and is headquartered in St. Louis, Missouri. In 1978 Peabody divisionalized its operations to establish more responsive and effective mine management. Peabody Coal Company's Arizona Division operates two large surface mines, the Black Mesa and Kayenta Mines. Both are located in northeastern Arizona, approximately 30 miles from Kayenta, Arizona, on the Navajo and Hopi Indian Reservations. The Black Mesa Mine produces 4 to 5 million tons of coal per year and the Kayenta Mine produces 7 to 8 million tons per year. Coal from the Black Mesa Mine is transported 274 miles by coal slurry pipeline to the Mohave Generating Plant located on the Nevada/Arizona border at Bullhead City, Arizona. This plant is jointly owned by Southern California Edison, the Los Angeles Department of Water and Power, Nevada Power Company and Salt River Project Agriculture Improvement and Power District.

Jan 1, 1983

By G. Richard Dreese

Most coal mining states have passed or amended laws restricting strip ruining in the past two years. In light of this and in anticipation of further restrictions by the states and the federal government on strip mining this paper attempts to show the Impact of these new laws on the structure of the coal mining industry in Ohio and specifically on one small stripping firm in Ohio. The implications of the study are applicable to other states under similar circumstances and to other industries which are being caught up in the ecological-economic struggle.

Jan 1, 1973

By H. L. Bourne

The sand dunes which line the east shore of Lake Michigan resulted after the last, or Wisconsin, glacial period in Michigan. Melt-water streams carried vast quantities of glacial debris to the near shore areas of predecessors to Lake Michigan. As the lake levels receded, these vast quantities of sand were exposed to the prevailing westerly winds, which was the last major process that acted upon the sand and resulted in the formation of the dunes. 1 These dunes are one of the significant natural resources within the state. Michigan dune sands supply about 90% of the foundry sand used in the automotive industry, and 40% of the foundry sand used 2 for all purposes within the United States. The deposits owe their importance to the following factors: grain size distribution, grain shape, mineral composition and location with respect to the foundry sand market. In spite of their economic significance these I deposits are in jeopardy through legislative preemption.

Jan 1, 1975

By W. Trask

The state of the art in crawler transporters for loads to 3 kt (3300 st) is sufficiently advanced to allow compilation of job cost figures showing the economics of tracked vehicle use under a wide variety of circumstances. Initial costs, cost per ton of capacity, and operational and maintenance expenses are presented. Data is derived from participation by the Neil F. Lampson Co. in more than 3 Mt - km (2.05 million st - mile) of crawler operation during the past 16 years. The effects of economics on future design trends will be examined with particular reference to versatility, portability, and capacity.

Jan 1, 1987

By Randall D. Peterson

Economic operation of a mine ventilation system must include some means by which operating costs can be quantified and evaluated periodically. Current practice at most mines relies upon the best judgement of foremen, engineers and managers to identify high cost or problem areas in the system and to estimate potential costs and benefits of work proposed to reduce inefficiencies. The problem with this is that significant savings can be overlooked or sub-economic projects may be undertaken when sufficient attention is not paid to the interrelationship between airflow characteristics and corporate financial criteria. In order to accurately determine costs and benefits it is necessary to view the solution of each potential ventilation problem as a separate economic opportunity.

Jan 1, 1993