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By William R. Oakley

In order to best-discuss the met spar industry let me take the liberty to review our involvement, that is, my company's. Our organization has been involved in the fluorspar industry for approximately thirty-five years. We started our activity in Western Kentucky as a mining company and a beneficiator of spar, that is, grinding and grading. After a few short years, the mine became contaminated and rather than invest in a flotation plant, the property was sold and our spar activity was moved, primarily to Mexico. It was decided not to establish ourselves as a Mexican corporation, so, it was necessary to take the position of backer-financier of numerous mining operations. We served in this capacity for quite some time. We also built processing plants on the border in Texas, that is, sizing, grading, etc. in order to market into the steel industry. In 1957, generally speaking, fluorspar for the steel industry was purchased as gravel fluorspar with a maximum of 10% -1/16". The price of this material was $23.50 to $24.00 per ton f.o.b. railcar at the Rio Grande Crossings and about $26.00 or $26.25 f.o.b. barge, Brownsville, Texas. Usually the material was purchased on an effective basis. As you know, 2-1/2 times the silica total, subtracted from the total CaF2 gives the effective calcium fluoride. This was normally the extent of the chemical specifications. Consequently, material was shipped with no regard whatever, to anything other than effective units. The variations in material was absolutely unbelievable. In addition to this, quite frequently, cars were shipped, as they say in the industry, topped. This being, good material placed in the top of cars or barges over bad or low grade. The entire shipment may very well have met the effective unit spec, but the complete imbalance of the sub grade vs. the high grade more or less guaranteed that the consumer was probably using a great deal of low grade and therefore, his usage had to be way higher than it should have been. He came to the conclusion, that because of these conditions and the new technology developing in the steel industry, it was just a matter of time that the entire raw material industry would have to improve. Rather than spend our efforts directed to a substitute flux, we put together a sizing and grading plant in order to ship a controlled crude product, with independent laboratory analysis confirming size and quality. The age of control was started. We began shipping 70 to 72-1/2, 80 and 85 effective with sizing 1/2" by 2", 1" by 3", and 2" by 5" with absolute control on the amount of fines. A material with no fines was a premium product. Incidentally it sold for $24.50 -60 effective up to $28.50, $29.50 for 80 effective.

Jan 1, 1978

By C. L. McKenzie, R. A. Heig

The design and operation of metallurgical laboratories is discussed. Laboratory size, general laboratory equipment and metallurgical staffing are discussed from a standpoint of desired laboratory results.

Jan 1, 1986

By John E. Litz

Coca Mines Inc. is a medium sized company exploring for and developing precious metal properties in the Western United States. They own interests in a number of properties which contain reserves of gold and silver. The Hog Heaven property presently is under development for a combination of open pit and underground mining, followed by recovery of the silver and gold by cyanidation. Property Location The properties included within the Hog Heaven Project are located in Flathead County, northwestern Montana. The property is readily accessible by road from either Polson or Kalispell, Montana, Figure 1. [ ]

Jan 1, 1984

By Peter Mason, Chris Walker, Mike Costello

The Phase I electrowinning system at KCGM's Fimiston Operation utilised the well proven technology of electrowinning precious metal values onto steel wool followed by calcining and direct smelting to bullion. The above process, while reliable and successful, was to some extent labour intensive. The Williams Mine in Ontario, Canada had published conditions under which precious metal values are electrowon onto woven stainless steel and directly removed using high pressure sprays. The current paper describes the testwork which was carried out to check the applicability of the Williams criteria to KCGM eluates arising from the elution of highly loaded carbon from the calcine circuit and lowly loaded carbon from the float tails circuit. Information is also given on the commissioning and opera­tional experience which occurred.

Jan 1, 1996

By Harold R. Kokal, Madhu G. Ranade

A metallurgical/flux is a substance that is added to combine with gangue (unwanted minerals) during ore smelting, with impurities in a molten metal, or with other additives in metal refining processes to form a slag that can be separated from the metal. Because slags are immiscible with the metallic melt and are of lower density, a separation of the slag and metal occurs if the viscosity and surface tension are of the proper values. The chemistries of slags are adjusted to provide the proper melting point, viscosity, surface tension, conductivity, specific heat, density, or chemical properties to effect the desired task. In addition to absorbing impurities from the metal, the purposes of the slag are to thermally insulate the metal bath, protect the molten metal from the atmosphere, and control the chemical potential of the system. Several excellent references on slags and metallurgical fluxes are available (Boynton, 1980, Lankford, Jr., et al., 1985, Turkdogan, 1983, Rosenqvist, 1974, Fine and Gaskell, 1984). The function of the slag might vary at different stages within a process prior to final melting. For example, the slag composition and behavior will change as materials descend in the iron blast furnace, or as they melt in the early stages of formation of steel- making slags. Selection of the chemistry for a slag might be influenced by factors outside the primary function as when blast furnace slags are used to make cement, rock wool insulation, or fertilizer supplements. Sometimes slags contain a sufficient amount of valuable recoverable elements to be sold as raw materials for other processes. Fluxes are often referred to as acid, basic, or neutral. Acid fluxes are those that generally form acids in water and bases are those that would generally form bases in water. Typical acid fluxes are silica, alumina, and phosphorus, although alumina can function as either an acid or base. Typical basic fluxes are lime and magnesia. Fluorspar, or calcium fluoride, is a neutral substance because it can be viewed as the reaction product of a base and an acid. The degree of acidity (ratio of acids to bases) or basicity (ratio of bases to acids) is often specified to characterize the slag chemistry for a particular system. The system might also be referred to as acid or basic depending on the choice of slag, for example, basic steelmaking uses slags with more bases (lime and magnesia) than acids (silica and alumina). Many forms of minerals and compounds have been used as fluxes depending on the process requirements, availability, costs, requirements for recycling of intermediate products, and environmental concerns. Because slags are most often mixtures of oxides and silicates, fluxes are usually oxides, carbonates (which decompose to oxides) and silicates. Slags comprising phosphates, borates, sulfides, carbides, or halides have also been used (Rosenqvist, 1974, Moore, 1981, Szekely et al., 1989). In ironmaking and steelmaking, some acidic components are sometimes added. In nonferrous processes slags and fluxes are acidic with silica as the primary component, and although the use of basic flux such as limestone or lime is not extensive, some amount is used to modify slag properties and some refining slags are lime based. The production of iron is accomplished by smelting of ores, pellets, and sinter in blast furnaces with subsequent refining of molten iron and scrap in oxygen-blown processes. The electric furnace is used to make steel, stainless steels, ferroalloys, and special alloys, whereas ferromanganese is often made in blast furnaces. Fluxes are used in all of these processes, and either limestone or lime is the major flux component with some dolomite, dolomitic lime, silica, alumina, and fluorspar being used. In ironmaking, the flux is added either by direct charging or through sinter and fluxed pellets. In steel refining by the basic oxygen process, flux is added as lime and dolomitic lime that are either charged as lumps or injected as fines. Some small amount of limestone is sometimes used. Fluorspar is often added as lumps or mixed with other fine materials in briquettes. Alumina is sometimes added to blast furnaces either by direct charging of sized lumps or through sinter. Typical acid fluxes are sand, gravel, quartz rock, used silica brick, or raw siliceous ore (Lankford, Jr., et al., 1985). Olivine, which is a magnesium-silicate mineral, has been added to iron blast furnaces to enhance removal of alkalis (Lankford, Jr., et al., 1985). Alumina in the form of bauxite, aluminiferous clay, and recycled alumina brick has been used as flux. Alumina can function amphoterically as either an acid or base, for example it can form aluminum silicate in high silica slags or calcium aluminate in lime-bearing slags (Lankford, Jr., et al., 1985). Limestone (calcium carbonate) and dolomite (magnesium-calcium carbonate), or fluxstones as they are sometimes called (Boynton, 1980), and their calcined forms, lime and dolomitic lime are the major basic fluxes. In the latter cases, the carbonates are de- composed in a kiln-type process to drive off carbon dioxide that might otherwise interfere with the subsequent smelting or refining process or require expensive forms of energy to effect the decomposition (e.g., by combustion of coke in the iron blast furnace). Limestone is considerably less expensive than lime because it is not calcined; however, lime is far more difficult to handle and reacts readily with water. Dolomite and dolomitic lime are used for their magnesia content. Fluorspar is a neutral flux often used as an additive in steel- making slags to improve fluidity, but it has also been used in combination with lime as a primary slag in electroslag refining (Duckworth and Hoyle, 1969). Fluorspar is available in several grades, with the lowest grade often used for steelmaking. When the price of fluorspar has risen, substitutes including aluminum smelting dross, borax, manganese ore, titania, iron oxides, silica sand, and

Jan 1, 1994

By James Watson Baxter

Fluxes are used to promote pyrometallurgical processes that rely on adhesion (soldering or brazing) or fusion (gas and arc welding) to join metallic surfaces. In the adhesive processes, the metal surfaces to be joined are not melted; the join is formed using a filler metal with lower melting point than the base metal. Fusion welding involves use of heat in excess of the melting point of the base metal. The fused joint may be achieved either by simply fusing together metal surfaces brought in contact with each other or by introducing additional molten metal of similar composition to form a fused joint. ADHESIVE PROCESSES--SOLDERING AND BRAZING In order for molten filler metal, solder or braze, to spread in a manner that creates a successful join; the work surfaces on the base metal must be thoroughly cleansed. Fluxes remove stubborn oxide films and other surface contaminants, promote wetting of the work surfaces, add fluidity to the solder or braze, and enhance workability and ease of spreading. Brazing processes involve higher temperatures than those reached in soldering. Brazing fluxes, which must remain active and effective at the higher temperatures, differ from those employed in soldering. Some common fluxes used in adhesive processes are rosin for soldering tin and electrical connections, hydrochloric acid for use in soldering galvanized iron and other zinc surfaces, and borax for brazing. Soldering and brazing are similar processes, the primary difference being the temperature at which the joining operation is carried out. Soldered joints, produced with low-melting-point fillers (solders) that melt and flow at temperature less that 450°C (Althouse et al., 1988) can sustain loads of 1 to 1.7 MPa for extended periods of time (Anon., 1966). Brazing involves the use of filler materials with melting points commonly above 500°C and generally provides stronger joints than those obtained with solder. Both processes require local application of heat to melt and spread the filler so that the molten filler can wet (adhere to) the base metals by alloying and diffusion. Soldering Soldering is a means of joining metals by adhesion using a metallic bonding alloy as the filler, commonly a mixture of lead and tin. However, the adhesion of solder depends more on its ability to be keyed into minute surface irregularities than on alloying. The most familiar application is to provide and secure electrical connections. Soft solders can range from 1 to 70% tin with the remainder mostly lead. However, for general-purpose, soft-solder work, the alloy is commonly 50% lead-50% tin. Higher lead contents provide a wider range in the melting temperature and, for this reason, a 60% lead-40% tin alloy, which yields a mushy mixture, is used for wiped joints in lead sheet and pipe work. Conversely, 40% lead-60% tin alloys are used in soldering tin and other low- melting-point materials for which a narrower range of melting temperature is required. There are numerous other solder compositions such as tin-silver, 95% tin-5% silver and antimony-tin, 95% tin and 5% antimony (Carlin, Jr., 1992). Heat needed to melt and spread the solders is commonly provided by electrically heated, copper-tipped soldering irons or by means of torches; the solder is applied by hand, usually face-fed by means of wire. For wiped joints in plumbing and lead-cable splicing, the solder is manipulated with cloth pads. The molten solder wets the joint surfaces and is drawn, by surface tension, into minute fissures and capillary openings. Other applications involve use of induction heaters and furnaces with pre-shaped solder appropriately placed prior to fluxing and heating. In some processes, the joints are immersed in molten solder. Constituents and Role of Soldering Fluxes: Soldering fluxes generally fall into one of three categories: highly corrosive fluxes, intermediate fluxes, and noncorrosive fluxes. These same categories are sometimes designated inorganic, organic and rosin-based respectively (Althouse et al., 1988). Common constituents of each group are discussed briefly below. Corrosive Fluxes (Inorganic). Work with aluminum, magnesium, stainless steel, high alloy steel, aluminum bronzes, and silicon bronzes is carried out at temperatures in the upper portion of the range for solder operations. Soldering these materials requires use of highly active, corrosive fluxes to remove and prevent the formation of the especially stubborn, hard, oxide films that form on these materials upon exposure to the atmosphere. The corrosive fluxes consist of inorganic acids and salts that are applied either as pastes or dry. They are active at elevated temperatures and, since they remain active after the soldering is completed, must be completely removed. The main constituent of most corrosive fluxes is zinc chloride with a melting temperature well above the solidus temperature of most commercial tin-lead solders. It is made by the action of hydrochloric acid on zinc. When zinc chloride is used alone, un- melted particles of this corrosive salt get caught up in the joint and weaken it. For this reason, other inorganic salts such as ammonium chloride (NH4Cl) or sodium chloride (NaCl) may be added to lower the melting temperature. A mixture of zinc chloride and ammonium chloride is very effective because the excellent oxide reducing properties of ammonium chloride and the protective action of the molten zinc chloride combine to produce a fluxing action superior to that achieved when either is used alone. In addition to zinc chloride, ammonium chloride, and sodium chloride; common con-

Jan 1, 1994

By Ezra L. Kotzin

Foundry sands used to make molds and cores have been very important to foundrymen since metal casting began hundreds of years ago. They are now used in two basic ways, either in an uncured green state, grain-bonded with clay, or in a set cured state achieved with sand that, mixed with resins or oils, is cured by baking or by chemical reaction. The term sand, as generally used in foundry applications, may best be defined as material composed of granular particles of mineral matter, ranging in size from 0.5 to 2 mm in diameter. The particulate nature of the material may be the result of natural disaggregation or result from crushing and screening of rock or ceramic materials; crushed and screened products are sometimes referred to as "manufactured sand." Based on their origin, the raw materials for foundry sands will vary in grain shape, grain composition, relative surface, grain size, and grain distribution patterns. These properties, in addition to their chemical analyses, sintering point and expansion characteristics play an important part in the choice of sands used as the base molding or core aggregate in metal casting. Sands with different origins may be blended to produce specific compositions and grain size distributions. Early raw material requirements based on silica sand were simple, but as sand/core/mold technology became more sophisticated and binder technology continued to be developed, the physical properties of foundry sands became more critical. Silica sand is composed of quartz, along with, in most cases, small amounts of feldspar, mica, clay, and other common minerals. Although silica sand is still by far the most widely used base material in production of molds and cores used in metal casting, other natural mineral sands have their own unique characteristics and fill an important niche in special applications. As a result, the term sand, as applied to raw materials used in metal casting, has been logically extended to include granular materials composed of a group of minerals other than quartz. With increased use in advanced foundry technology, natural sands composed predominantly of zircon, chromite, staurolite, or aluminum silicate minerals and of granularized chromite or olivine, have become more than just alternate materials and are now commonly classified as sands when the grains are sand-sized. Foundry sand may therefore be considered under two categories: silica sands and non-silica sands.

Jan 1, 1994

By Osvaldo Bascur, Barun Gorain, Jaco Steyn

"The last few decades have seen some remarkable advancement in information technology, but recently various digital technologies have resulted in several synergies to deliver innovation in diverse applications. The mining industry has been relatively slow in adopting these technologies compared to the other industries, but this scenario is changing fast.Challenges. Mining companies globally are going through a series of challenges such as declining ore grades with complex metallurgy, increasing depth of ore bodies, high capital and operating costs, lower productivity, shortage of technical resources, significant pressure from stake-holders to deliver, along with growing environmental and corporate social responsibility issues. Improvement in profitability would need significant improvements in operational performance.Consequently, over the last few years, there has been a major focus among some mining companies to imbibe operational excellence. This has been only possible because of the replacement of a silos-based approach by an integrated view of the organization. Such an integrated view is now possible via the evolving digital technologies. Even so, such a transformation calls for a change in culture, which, for most organizations is not trivial. Attempts in the past to integrate functions, such as through mine-to-mill initiatives in the mining industry, have demonstrated significant benefits to many operations (McKee, 2013). Still, sustaining these benefits has clearly been a challenge due to manpower turnover and lack of proper systems and structures that integrate information between business functions within an operation and between operations and the corporate level.Opportunities. The advent of digital technology has opened up opportunities to integrate interdepartmental information for a unified understanding across an entire organization. The advances in instrumentation, equipment control systems, supervisory control systems (SCADA/ Historian) and industrial networks have helped in the direction of enterprise- wide integration. The availability of real time information across an enterprise has given rise to numerous possibilities to improve organization performance. As suggested by Seshan and Gorain (2016), some of the potential opportunities are as follows:"

Jan 9, 2018

By B. Gorain

"INTRODUCTION The last few decades have seen some remarkable advancement in information technology, but recently various digital technologies have resulted in several synergies to deliver innovation in diverse applications. The mining industry has been relatively slow in adopting these technologies compared to the other industries, but this scenario is changing fast. Keywords: Digital Transformation, Operational Intelligence, Gold Recovery, Mine to Mill integration, Planning and Execution strategy, Theory of Constraints. Challenges Mining companies globally are going through a series of challenges such as declining ore grades with complex metallurgy, increasing depth of ore bodies, high capital and operating costs, lower productivity, shortage of technical resources, significant pressure from stake-holders to deliver, along with growing environmental and corporate social responsibility issues. Improvement in profitability would need significant improvements in operational performance. Consequently, over the last few years, there has been a major focus amongst some mining companies to imbibe Operational Excellence. This has been only possible because of the replacement of a silos based approach by an integrated view of the organization. Such an integrated view is now possible via the evolving digital technologies. Even so, such a transformation calls for a change in culture, which, for most organization is not trivial. Attempts in the past to integrate functions such as through Mine-to-Mill initiatives in the mining industry have demonstrated significant benefits to many operations (McKee, 2013). Still, sustaining these benefits has clearly been a challenge due to manpower turn over and lack of proper systems and structures that integrate information between business functions within an operation and between operations and the corporate.Opportunities The advent of digital technology has opened-up opportunities to integrate inter-departmental information for a unified understanding of, and across, an entire organization. The advances in instrumentation, equipment control systems, supervisory control systems (SCADA/Historian) and industrial networks have helped in the direction of enterprise wide integration. The availability of real time information across an enterprise has given rise to numerous possibilities to improve organization performance. As suggested by Seshan & Gorain (2016), some of the potential opportunities are as follows:"

Jan 1, 2018

By E. H. Smith

St. Joe Minerals Corp., a subsidiary of Fluor Corp., treats high-grade gold, silver, and copper ore at its El Indio plant at an altitude of 4 km in the Chilean Andes. The ore is complex, being a mixture of massive pyrite-enargite and quartz, both containing very fine gold and silver. Treatment produces a copper flotation concentrate containing high levels of gold, silver, and arsenic, and also dore bullion. Part of the flotation concentrate is roasted to remove the arsenic content, and arsenic trioxide is collected as a by-product.

Jan 1, 1987

By Edward Hall Smith

The E1 Indio Mine is located in the Andes mountains about 180 kilometers East of La Serena, capital of the Fourth Region of Chile. It is reached by an international highway running up the Elqui Valley as far as Juntas from where the last 42 kilometers is on a road constructed by the Company. The plant is located at 3.900 meters above sea level among extremely rugged terrain with nearby mountains rising about 5.500 meters. Climatic conditions at these altitudes are severe with winter temperatures down to -20°C. Snow storms lasting several days and leaving up to two meters of snow have been experienced, while fierce winds are corm=.

Jan 1, 1984

By R. Thorpe, M. Dosbaba, A. Kopriva, A. Niiranen, J. Ruokanen

"Automated Mineralogy (AM) is an important diagnostic tool in flotation plants as it adds ore and particle mineralogical properties to traditional mass and chemical data. AM is used in project development, for future ore studies and for diagnosing concentrator operations. With the exception of operations who own central laboratory or on-site systems, the use of AM is often limited to the analysis of a comparatively small set of samples. Metrix Plant Technologies has partnered with TESCAN to integrate TIMA AM technology into the implementation of Performance Assessment Campaigns (PAC). Routine daily composite samples from the mill are analysed mineralogically on a size-by-size basis over several weeks. All the relevant metallurgical, process control and mineralogical data is combined into a single large database for mass balancing and interactive examination. This paper describes the implementation and results of a PAC at the Agnico Eagle Kittilä gold mine in Finland. Although challenging, the addition of mineralogical data as dependent variables in multivariate analysis leads to a much deeper understanding of the root cause effect of events driving the flotation performance. INTRODUCTION TO STUDY The Kittilä mine, owned by Agnico Eagle, is Europe’s largest primary gold mine, with annual production of approximately 180,000 Oz. The operation is located in Lapland in northern Finland, and is currently expected to operate until 2035. The location of the operation is shown in Figure 1. Historically, the mine was an open pit, although in recent years ore is sourced solely from underground operations. The processing plant features crushing and grinding, followed by carbon flotation and sulphide flotation. Carbon concentrate is a waste stream, and sulphide concentrate reports to pressure oxidation (autoclave) and CIL circuits for gold extraction. The final flowsheet is shown in Figure 2. Following commissioning in late 2008, the operation achieved commercial production on May 1st 2009. Gold recovery in flotation gradually increased to a 92-96% range at a throughput of ~3500-4000 tonnes per day. In late 2014, the operation commissioned a plant expansion to ~5000 tonnes per day. Following a commissioning period, the operation stabilised with recoveries in a 90-94% range, which over any given period was determined to be ~2% lower with statistical significance. The trends from start-up of gold recovery in flotation and throughput are shown as follows in Figure 3. In early 2016, Agnico Eagle Kittilä mine, along with Agnico Eagle Technical Services (AETS) partnered with Metrix Plant Technologies and TESCAN, to perform a Performance Assessment Campaign (PAC) at Kittilä, involving automated mineralogy on five key streams at Kittilä on 40 days selected from a 50 day period between February 15th and April 4th 2016, when plant operations were stable. In addition to the mineralogical data, metallurgical and operational data were pooled into a single, powerful database to explore opportunities for the operation to improve recovery in a sustained manner, ideally to the levels pre-expansion."

Jan 1, 2017

By R. Mier

The metals and minerals mining industry has evolved dramatically from the earliest objects ever made out of native copper circa 9,000 BC to the modern developments we see today. To better appreciate past developments and to get a sense of where the industry is heading, a brief overview of mayor industry highlights over the last 100 years will be presented, followed by a discussion on potential global scenarios and by a review on mayor industry trends.

Feb 27, 2013

By Christian F. Baiz

A new agenda has risen. Born out of governments' policies and world economies, the years ahead will carry with them reduced growth. For inflation dependent and capital intensive industries, such as metals and mining, as well as most other natural resource industries, a period of long-term contraction in outmoded and costly capacity will evolve. This will be supplanted by new, lower cost capacity in some cases, but only if the total cost of production, including cash operating and debt service costs comes in at or below current market conditions. The industrial outlook can be characterized as bearish. As one major U.S. bank economist put it, mining companies planning their five-year forecast from 1984 out, should take the current market conditions and straight-line them to the end of the decade. With low growth and low inflation, the real price of metals will remain flat or slightly declining. As a result, capital funding will be problematic. The low cost producer, that is one with low cash costs and low principal and interest costs per unit of production, will succeed.

Jan 1, 1984

By R. H. Lien, B. T. Waterman

Passive bioremediation can be a cost effective treatment for a variety of mine waters, including final draindown of closed cyanide heap leaches and seepage from tails dams. These solutions can contain noncompliance concentrations of arsenic, antimony, cyanide, mercury, nitrate, selenium, silver, etc. Passive bioremediation involves treating the contaminated solutions under anaerobic conditions. Contaminants such as mercury and nitrate are effectively removed in passive bioreactors whereas the effect of this treatment on TDS, cyanide, and sulfate is minimal. Several waters from gold heap leach operations were treated in the column tests. These tests determined the effectiveness of contaminant removal from each water and also provided important scaleup design information.

Jan 1, 1997

By John A. Cordes, Thomas F. Torries

INTRODUCTION Nonfuel mineral markets have always tended to be volatile due to the cyclical nature of demand and the difficulty of fine-tuning capacity and output levels. Experiences over the past two decades, however, have been especially perverse. This short volume attempts to provide insights into this era and some guidance for the future. The papers are linked together by their focus on issues of productive capacity. At the same time, they provide a useful description, explanation and evaluation of the industry's evolution and its implications for the near-term. The regnant pessimism of the 1980s was very much alive during the early months of 1987 when the theme of this symposium was formalized. Indices of real metal prices had only inched-up from all-time lows in 1986. The hemorrhage of corporate red-ink was still a powerful memory. Frustration with the apparent inability of closures and reduced capacity utilization to re-establish market balance was strong. To the more pessimistic, the industry appeared destined to a quarter century of persistent excess capacity and nonremunerative prices. The conditions to support this pessimism were readily apparent. Economic literature tells us that surplus capacity is a complex, usually unexpected and often long-lived phenomenon caused by the interaction of at least three factors. The first is a rising capital-intensity of production. The second is the presence of aggressive new entrants whose capacity additions are typically (1) trade- dedicated because local market absorption is low; (2) cost-competitive for natural or policy-support reasons; (3) heavily burdened by debt-repayment obligations; and (4) viewed as important sources of employment, regional development and foreign exchange. The third, and often decisive, factor is an unanticipated decline or stagnation in demand growth for the sector's output. The first two factors combine to increase competitive pressures and to raise the actual or perceived cost of idle capacity. Market rigidity reduces responsiveness to price signals and distorts the burden of adjustment. Demand atrophy exacerbates these pressures especially on unprotected producers in the higher quadrants of the global supply function. In the mid-1980s, evidence of the existence of all these factors were easy to cite. Culprits were often identified. Claims for protection, global sharing of adjustment burdens, and imposition of disincentives to new capacity regardless of inherent economic status were co-dominant themes with the buzz-words of "competitiveness" and "level playing fields." This, notwithstanding the suggestions of the same economic literature that excess capacity persists longest when interventionist remedies permit it to continue. Today, only eighteen months later, the mood is decidedly more buoyant and most analysts are cautiously optimistic about the next few years. Many informed analysts have concluded that the excess capacity of the recent past has disappeared. For the present, the marketplace seems to have restored a balance between supply and demand. That the adjustment took five or six years longer than anticipated attests to the dramatic structural changes which have characterized the industry. The implications of these changes for the future are unclear. Were the macroeconomic shocks, coupled with industry transitions, so extraordinary in magnitude and timing that experiences were unique? If so, the next years may hold more stable and cautious times for the industry. Alternatively, is the inherently volatile metals industry facing a future of cycles equally perverse in terms of amplitude and duration due to economic uncertainities and inflexible industry response capabilities?

Jan 1, 1989

By Robin G. Adams

The market prices received by producers of internationally traded commodity metals have been, and continue to be remarkably volatile and unpredictable compared with most other traded goods and services. This volatility results in an erratic financial performance on the part of producing companies, disruptive and often inflationary cost changes for consumers, unreliable tax revenues and export earnings for host governments and severe social and economic pressures on local, sometimes remote, communities which are dependent on the activity in question. Generally speaking, price volatility appears to be associated with the inability of the metal producing side of the industry to regulate the volume of supply in a manner that is consistent with metal demand, which in turn reflects broad macroeconomic and industrial developments around the world. This statement does not purport to apply to all metals or to all instances of volatility of course. Price movements may occur as a result of pure speculation or even illegal manipulation of the commodity markets. Embargoes, boycotts and other politically induced supply changes may contribute. Threatened or actual strikes also cause artificial swings in sales volumes and prices. How- ever, most of these developments are of a short-term nature. Yet metals price cycles may last for several years, as demonstrated by the extended copper price trough from 1981 to 1986. This paper deals with price volatility which reflects long-term economic cycles and the adaptive processes that exist within the industry in response to such cycles. Special emphasis is placed on the role of forecasts and forecasters in these processes. It should be said at the outset that this reflects the personal experience of one forecaster working in private sector commercial consulting practices that are independent of producers, consumers and host governments. However, the experience does cover the entire period since 1973 and has involved working with a substantial majority of the major companies that supply high volume commodity metals. By way of background it should be stated that the post-1973 world economy has provided a challenging environment for forecasters. One cannot be precise about the forecasting record of either industry insiders or outside consultants, financial analysts and academic forecasters because comprehensive records have not been kept, or if they have the results are too embarrassing to be published. Institutions such as the World Bank have published forecasts of the prices of major commodities on a regular basis and these have, presumably, had some influence on financing decisions in the industry. This record along with our own experience and numerous discussions with metal producers, major consumers and host governments permits certain generalizations to be made. The most important of these is that during the early 1980s. from about 1980 through 1985/6, the forecasters system- atically and substantially over- estimated metal prices. While some fore- casters did correctly anticipate a recession in the early 1980s and some consequential decline in prices, the magnitude and duration of the decline was far greater than anyone foresaw. This systematic forecasting "failure" appears to have occurred independently of the forecasting methodology employed. Moreover, its extent cannot be explained by obvious factors such as incorrect macroeconomic assumptions. There appears to have been some kind of structural change in the world mining and metals industry over this period

Jan 1, 1989

By John A. Cordes, John J. Schanz

INTRODUCTION The economic structures of industrialized countries require a continuous supply of reasonably priced and appropriately processed nonfuel minerals. As a result, national policy makers are sensitive to real or perceived threats to the effective operation of these commodity markets. Their most persistent concerns can be subsumed into the related political economy issues of supply availability and marketplace stability. These concerns are not new. For over a century the "global struggle" for mineral resources has influenced national policies and international relations (Eckes, 1979). During the past two decades the complexity of these issues, if not their place on national political agendas, has increased. Dramatic changes in the structure of mineral industries and in the nature of international economic relations have redefined policy needs and response options. This paper focuses on how selected OECD countries have responded to nonfuel mineral industry issues over the past twenty-five years. Particular emphasis is placed on the impact these policy decisions have had on the size and location of productive capacity and its utilization rates. The results, perhaps, are not surprising for this group of market- oriented economics. While individual cases of significant impact are easy to identify at various times in most countries, the overall importance of policy decisions has not been great. This is especially true for the past decade when excess capacity reached unusual highs of magnitude and duration. Macroeconomic forces and market structure changes played much more important roles. PERSPECTIVES ON THE ISSUES OECD nations dominate the international nonfuel minerals marketplace as producers, consumers and traders. In 1986, these twenty-four countries accounted for 75 percent of the Western world's export trade value in minerals, ores and metals. They imported 88 percent of the total value. During 1966, the respective percentages were 70 and 94. Japan was the world's largest importer in 1986 followed by the US, FRG, UK and France. The same five countries led the 1966 list except that, then, Japan was ranked fourth. Table 1 ranks the fifteen largest Western exporting nations in the two specified years. It also indicates the growth in current export dollars earned in 1986 compared to 1966.

Jan 1, 1989

By James P. Dorian, James M. Otto

The value of exported nonenergy minerals from the less-developed countries has increased substantially between 1970 and 1985, but their market share relative to world exports has remained stagnant. Of the top twenty minerals exporters, only four are developing countries. Production capacity in the developing countries is shown to be less sensitive to demand downturns than capacity in the developed countries. Two approaches to the management of cyclical minerals demand are given using examples from India and Papua New Guinea. The authors conclude that pro¬tective policies implemented by developing nations have, barring a few exceptions, relatively little impact on the chronic nonfuel minerals oversupply problem.

Jan 1, 1989

By Daniel E. Collins

Massive banded Fe-Zn-Cu-Pb sulfide deposits in the Bagdad are associated with metamorphosed eugeosynclinal mafic volcanic and intrusives rocks Precambrian age. The geologic environment is very similar to that of the Jerome-Prescott area which lies 70 km. east of Bagdad. Mining of massive sulfides deposits began in 1917 on the Copper King mine in spite of its early discovery and the discovery of the Old Dick mine in 1882. The first shipments of zinc ore from the Copper King were hand sorted and averaged 46.89% Zn, 5.7 oz. Ag, 3.58% Pb and 1.68% Cu. Oxidized copper was first produced from the Old Dick mine in 1943~ In all, five deposits of massive sulfide ores have been mined in the Bagdad for a total production of nearly 2 million tons with an average grade of 12.0% Zn and 3.6% Cu. The largest deposit, the Bruce mine is currently closed because reduced metal prices and has produced a total of 823,000 tons of Zn-Cu ore to date. Mining of massive sulfide ore in the Bagdad area is presently idle. However, the potential for locating yet undiscovered ore bodies is good. Exploration for new ore bodies is difficult at best due to the complex geologic history of the area, the small size of individual ore bodies and lack of understanding as to the formation of massive sulfide deposits. The purpose of this investigation was to obtain a better understanding of the host rock formations through detailed geologic mapping, petrography and chemical analysis.

Jan 1, 1977