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By Louis J. Sousa, Elizabeth H. Yaremchuk, Annette P. Graham

Introduction Responding to Congressional inquiries regarding the purchase of a number of major domestic mining and metals companies by foreign firms, the US Bureau of Mines examined trends in foreign direct investment in the US. mining and mineral processing industries1. "Foreign Direct Investment in the US Minerals Industry" analyzes the extent of foreign investment in several major mineral commodity industries. It identified the countries of origin of foreign investment in US mineral assets. The study also described several reasons for the growth of foreign investment in US minerals and discussed some potential implications of this activity. Foreign investment trends in the economy and minerals For the economy as a whole, between 1977 and 1985 the number of US affiliates of foreign investors more than doubled - from 4046 to 9824 - as did employment at these affiliates - from 1.2 million workers to 2.9 million (Table 1)2. During this same time period, the total value of assets of all US affiliates throughout the economy rose from $239 billion to $736 billion (1985 constant dollars). In the domestic minerals industry, foreign investment also grew substantially during that same time as the number of US minerals-related affiliates increased by 74% - from 125 to 217 - between 1977 and 19853. During the same period, employment at all foreign-owned affiliate mineral operations in this country increased by 78% and totaled 198,000 workers at the end of 1985. Parallelling the growth in the number of and employment at foreign-owned US mineral and metal operations, the total value of US mineral assets owned by foreign firms (or individuals) has nearly doubled since 1977 and amounted to $30.9 billion at the end of 1985. The rate of increase in foreign investment in US mineral assets was slightly higher in the metals industries than in the nonmetallic groups. Foreign investment more prevalent in minerals Perhaps a more useful way of evaluating the growth in foreign investment is to analyze growth in the "intensity" of foreign investment - the proportion of total US industry assets held by foreign investors. Although insufficient data on total industry assets prevented the development of such a measure, employment data provide an indication of relative differences in the intensity of foreign investment among the mineral industries and other industries. For example, as noted in Fig. 1, the 198,000 minerals industry workers employed at US-affiliate companies in 1985 represented 12.7% of total employment in this sector of the economy. In comparison, for the mining and manufacturing sectors of the economy as a whole, 7.8% of all workers were employed at US-affiliate firms in 1985. For the total economy, 2.7% of the entire civilian employed workforce worked at US-affiliate firms that year. Using employment as an indicator, foreign investment has been more prevalent in the minerals industry than in most other industries. About one worker in eight in the minerals sector was employed at a US-affiliate firm in 1985. In comparison, for the goods producing sectors of the economy - all mining, petroleum, and manufacturing industries - about one worker in 13 was employed at a

Jan 8, 1988

By Robert D. Coyle, David L. Emmons

Introduction The Cove gold-silver deposit is located in Lander County, NV about 50 km (30 miles) southwest of Battle Mountain, NV (Fig. 1). The deposit is in the north-central part of the Fish Creek Mountains within the McCoy mining district. Gold was first discovered in the McCoy district in 1914 by Joseph H. McCoy (Vanderburg, 1939). From 1928 to the early 1930s, minor production occurred from shallow underground workings. Total gold production was less than 311 kg (10,000 oz; Stager, 1977). The district was inactive until the mid-1960s when it was explored by Bear Creek Mining, Summa Corp., Houston Oil and Minerals Corp., Gold Fields, and Tenneco Minerals. Tenneco began a detailed reevaluation of the McCoy deposit in the fall of 1984. Tenneco's decision to place the deposit into production was based on a geological reserve of 8.7 t (280,000 oz) of gold (Kuyper, 1987). Subsequent exploration and development drilling of the McCoy skarn deposit has more than doubled the mineable skarn reserves to 19 t (615,000 oz) of gold. In September 1985, Tenneco began development work on the McCoy gold-skarn deposit. The project is an open-pit, heap leach mine. The first gold was poured in April 1986. Echo Bay Mines acquired Tenneco's precious metals properties in October 1986. The mining operation and district exploration started by Tenneco is continuing under the Echo Bay's ownership. The Cove deposit was discovered in January 1987 and production began in February 1988. The deposit will begin as an open-pit, heap leach operation. It will be converted into an open-pit and underground mine with a 9-kt (10,000-stpd) mill. Geologic setting The Cove gold-silver deposit is situated on the east flank of the Fish Creek Range. Surface elevations range from 1460 to 1680 m (4800 to 5500 ft). The deposit is 1.6 km (1 mile) northeast of the McCoy gold-skarn deposit. The Cove deposit is hosted by the Augusta Sequence of Triassic age. Three formations of the sequence are mineralized at the Cove. In ascending order they are the Favret, Panther Canyon, and Augusta Mountain formations. The Favret formation is a gray, locally silty limestone that is commonly fossiliferous. The base of the formation is not exposed. Exposed and drilled intervals are more than 60 m (200 ft) thick. Conformably overlying the Favret formation is the Panther Canyon formation. This formation is 215 m (700 ft) thick and consists of a siliclastic and carbonate sequence of conglomerate, quartzite (sandstone), mudstone, limestone, and dolomite. It is a distinctly coarsening-upward sequence of rocks. The top of the unit is conglomerate with chert and quartzite clasts up to 150 mm-diam (6 in.-diam). The Augusta Mountain forma-

Jan 8, 1988

By G. Johnston, P. K. Chatterjee, S. Holguin

M. Gershon The article is an excellent one, providing a basis for the conduct of the major tasks in underground mine planning and scheduling. I object to only one word. Since that word is featured in the title, it is a strong objection. The word used erroneously is optimization. There is no optimization performed in the article. By definition, an optimization is an approach that yields the best of all possible solutions. We can limit this definition to its narrowest sense, the optimization techniques of operations research such as linear programming, or broaden it to include less sophisticated search procedures that find the best mine plan or schedule. No such claim is made in the article. No optimization of any kind is performed. The major tool used is a simulation, which, in truth, is probably more appropriate for this problem than any optimization. But simulation does not optimize. It only allows for quick evaluation of many options, leading to the selection of the best plan "of those tried," not "of all possible plans." This article, of course, is not the first mining paper to make this error. It seems that the word optimization is used more to impress people than to refer to any act of optimizing. It is used in a way that implies "try to optimize"or "come close to optimize," but not to really do it. It is usually appropriate to quietly ignore this error. But when Dr. Chatterjee, who has done so much good work in true optimization projects and whose work I have come to admire, makes such an error, it is time to publicly dispute it. Having discussed this very point with him in the past, I am sure that he will agree. If he can support this position in his response, perhaps people will start to listen and we can reduce the number of false claims of optimization. This should be easy for him in this case since the approach he used, simulation, is the more appropriate one anyway.

Jan 8, 1988

By Barton J. Suchomel

Introduction Despite perennial economic turbulence, Argentina continues to push ahead with efforts to develop its fledgling hardrock mining industry. The country lacks the infrastructure and mining history of neighboring Chile, but contains vast areas of great resource potential. The eastern slope of the Andean Cordillera in west-northwest Argentina is a relatively little-explored region offering geology highly conducive to the occurrence of base and precious metals deposits. Past exploration has concentrated on locating and evaluating porphyry copper-molybdenum (Cu-Mo) type occurrences. Comparatively little attention has been given to precious metals potential. An interesting and important group of base and precious metals prospects in northwestern Argentina occurs within and adjacent to the Upper Miocene Farallon Negro volcanic complex in Catamarca province. The volcanic complex contains numerous base and precious metals vein occurrences, high gold porphyry copper prospects, and possible disseminated gold targets that have attracted relatively minor attention in the past. Various geologic aspects of the region have been reported by several workers (Llambias, 1970, 1972; Caelles et al, 1971; and Sillitoe, 1973). Regional geology The Farallon Negro volcanic complex is located within the Sierras Pampeanas morphostructural province about 200 km (125 miles) east of the main Andean Cordillera (Fig. 1). The Sierras Pampeanas is characterized by north-south-trending basin and range topography that developed during the Miocene and Pliocene. Uplifted blocks are composed mainly of lower Paleozoic metasediments and granitoid plutonic rocks unconformably overlain by Tertiary redbeds and minor carbonates. A consistent landward migration of volcanic and intrusive ac¬tivity occurred in this region of the Andes from the early Mesozoic through the mid-Tertiary. An eastward extension of magmatism during the Miocene and Pliocene resulted in the formation of the Farallon Negro volcanic center. Volcanism at Farallon Negro ini-

Jan 8, 1988

By H. Lyn Bourne

This is the sixth annual tabulation that gives mineral royalty information. This tabulation, like the previous editions, includes all of the earlier data plus more than 100 new entries. In addition to the royalty information, some entries show the cost of purchased reserves. An article in the December 1984 Kentucky Coal Journal could have far reaching applications. It explains that a banking firm examined the "reserve risk" as one of six factors for analysis when financing a coal project. The firm concluded that coal reserves in Kentucky are worth an average of $0.29/t ($0.26 per st) in-place. The banking firm based this in-place value on its examination of more than 50 leases. In-place value is especially important when trying to establish a mineral value for a given deposit. Ernie Lehman wrote to this author after last year's column appeared and he quoted the lease rates for lead and zinc on federal land. He states, from first hand information, that the leases are based on a percentage of net smelter return as follows: 4% for the first five years, 4.5% for the next five years, and 5% thereafter. The figures used in last year's column ($ per st) came from dividing reported royalty income by reported production. The information reported last year merely translates the results of the net smelter return (as written in the lease) to royalty income per ton to the US Government for the various years. Statistics from the Minerals Management Service of the Federal Government show that oil and gas account for 40% and 53%, respectively, of the Federal royalty income. Coal accounts for about 4% and all other minerals, the remaining 3%. Oil and gas leases are mostly at 12.5%. Most of the coal leases are at 12.5% for surface mining operations and 8% for underground mining. Many of the other commodities are leased at 5%, which has been true for decades. Relative to Federal leases, this year's table shows some percentages and some costs per ton. This was done to give information about the leases and also to show income produced by various commodities. Note that some commodities have a variation in $/ton even though the royalty percent is the same. These variations result from a combination of factors that influence the value of a mineral commodity. The same caveats that have appeared in previous columns relative to factors that influence the value of reserves are restated. The data in the table serve as a general reference and are not intended to present an absolute scale of reserves costs. Several factors influence the value of any mineral commodity. The factors include: • location/transportation (especially significant for most industrial minerals); • market conditions both for the commodity and the company acquiring the right to mine it; *quality or grade of the deposit as it reflects the amount of processing/beneficiation necessary to produce the finished product; and • legislative restrictions and conditions for mining a given material at a given site. These and other factors will significantly influence the cost of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity in column 1, and the subsequent columns give the location - either by state, US geographic area or Canadian province; the cost - R for royalty and P for purchased cost; and the year in which the lease or purchase agreement occurred. The last column offers either comments or gives a footnote number for more information. The cost column requires more explanation. The units may refer to cubic yards (/yd), cubic feet (/cu ft), tons (/T, 2000 lbs) or acres (/A). 1 cu yd = 0.7646 m3 1 cu ft = 0.2832 m3 1st=0.9078t 1 acre = 0.4047 hm or m2 In several cases, the royalty is a percentage of the sales price of the finished product and is levied against either the amount produced or the amount sold. We thank those who contributed information for the table: G. Anderson, B. Brown, R. Ganis, K. Hauser, E. Lehman, and S. Sims. Their help is appreciated as are the contributions by those who asked to remain anonymous. This column requires additional information each year. That data must come from people in the minerals industry who have royalty information. What appears in the table is only a very small fraction of the cost information relative to the various commodities and the geographic areas for which there is royalty information. If you find this column of interest and possess information write the author at the address given in the author's box or call 313-462-0005.

Jan 7, 1988

By Barbara S. Parrish, I. S. Parrish

For two consecutive years the author and his wife have been fortunate enough to have been invited by the Peoples Republic of China to work with Chinese geologists of the Geological Bureau of the Ministry of Metallurgical Industries (MMI). Our visits, each of which lasted 7-8 weeks, took us to northwestern Sichuan, central Anhui, and much of Hebei Province, as shown in the accompanying drawing. We were asked to evaluate, criticize, and offer suggestions on the exploration and mining techniques used by the Chinese. Our commission both years was centered on gold, although we were also to visit other operations when the opportunity arose. In 1986, the visit primarily concerned with disseminated "Carlin" type gold deposits; in 1987, with "Greenstone" type gold deposits. Gold has been targeted by the Chinese as a metal of importance to the nation. Several governmental agencies have received direction and budgets to seek and develop gold properties. Besides the Ministry of Metallurgical Industry, gold is being sought by the Ministry of Geology, the China Gold Corporation, and reportedly the Peoples Army. There is considerable competition among these agencies. It is not uncommon to find two or more agencies working in the same general area. However, communication between the groups is minimal. Last year, we toured a small mine at Bambishan. We could see a diamond drill across the valley. The rig belonged to another Ministry and my guides voiced their curiosity to know what their competitors were finding. Mining, too, is not the monolithic bureaucracy that most Westerners anticipate in China. There are various levels of mining. These differ not only in sophistication, but in ownership. First, for small deposits the state allows "Peoples Mines". These can be owned and worked by individuals. The individual owner-miner may hire relatives or neighbors and give them a wage or he may turn the mine into a joint ownership situation. They

Jan 7, 1988

By Charles L. Kimbell

Introduction Despite the focus on the so-called "high-tech" and service components of the economy, the minerals industry in 1987 continued to provide the world the overwhelmingly dominant share of the total raw material supply for all manufacturing operations. And, in the form of fertilizers and other soil treatment materials, minerals also supplied indispensable raw materials to ensure continued high production of the agricultural and forestry sectors of the world's economy. Moreover, the role of minerals as a source of construction raw materials was essential to that sector. On the basis of preliminary and partial statistics on world output of crude mineral commodities, 1987 appears to have been a year of further recovery from the recessional years of 1981-1983. The value of world crude mineral industry production (all mineral commodities including fuels) apparently advanced about 5% to nearly $1.1 trillion in terms of constant 1983 dollars.' That is significantly above the recently revised 1986 level of nearly $1.05 trillion, but still considerably below the record-to-date high of $1.27 trillion set in 1980, as shown in Table 1. That growth in value took place despite relatively flat world oil prices - oil being the most important component of the aggregate, as it has been for decades. There is insufficient information available to assess the total value of processed mineral commodities (refined metals, refined oil, manufactured fertilizers and the like). But a figure of $2.6 trillion (constant 1983 dollars) would be a quite conservative estimate for those materials derived only from primary or newly mined materials. And an additional, as-yet-unestimated increment should be added for processed materials derived from secondary raw materials - scrap and other reclaimed substances. From a world trade viewpoint, minerals and mineral products dominate in terms of tonnage. For example, in 1985, on a weight basis, mineral commodities including fuels constituted more than 58% of all goods moving through the Suez Canal and 53% of all goods passing through the Panama Canal. These waterways cannot accommodate giant tankers and ore carriers. So an even larger share of total oceanic trade is composed of minerals and mineral products. Yet, in terms of value, the share of the total accounted for by these industrial essentials is much lower than that accounted for by other commodities, most notably sophisticated high-tech equipment and other goods with a relatively high per-pound value. Worldwide data on the value of mineral export trade for 1987 is so incomplete at this writing that it is impossible to assess that actual level. Indeed, the compilation of similar available data for 1986 covers only the exports of nations with developed market economies. In 1985, these countries accounted for only 67% of total world exports of all goods. They accounted for only 41% of world exports of major mineral commodities: crude nonmetals; metal ores, concentrates, and scrap; mineral fuels; nonferrous metals excluding gold; and iron and steel. For these developed-market-economy countries, the value of exports of these major mineral commodities declined by more than 10% between 1985 and 1986. Most of the shortfall came as a result of a 26% drop in the value of fuels exports. If these patterns of

Jan 7, 1988

By L Baumgardner, A. V. Castelli

Barite In 1987, United States mine production of barite increased 15.870, consumption (sold or used by grinding plants) increased by 6.97, and imports are estimated to have fallen by 19.57. World mine production decreased by 137, according to the US Bureau of Mines. The value of US produced barite, fob mine, decreased 1.4%, according to the Bureau. The declared value for cif US port of all imported unground barite during the first 10 months of 1987 decreased from $39.02/t ($35.40 per st) to $37.16/t ($33.71 per st), the Bureau stated. Nevada continued to be the leading US producer of' barite with 637r of the total. It is followed by Georgia, Missouri, California, Tennessee, and Montana. The Bureau of Mines estimates 657 of the US mine production was used as a weighting agent in drilling fluids. The remaining 35°/r was used in barium chemicals, glass or as a filler. Most of the production from Missouri, Georgia, and Tennessee was used in the non-oilfield sector. This sector continued to increase. Of the total consumption (used by grinding plants and chemical manufacturers), it is estimated that 8070 was used in drilling fluids and 2017( in the non-oilfield sector - barium chemicals and fillers in paper, plastics, and glass. The tonnage consumed in the drilling fluids market increased slightly. But the average number of rotary rigs operating decreased from 964 in 1986 to 936 in 1987. This is the lowest number of operating rigs reported since 1949. The increase in consumption in this sector is due to an increase of rigs operating in the US Gulf and other higher consumption areas over 1986. Crude barite imports were estimated to be down by 19.5% in 1987. Still, they accounted for 637 of the barite consumed in the US. During the first 10 months, China continued to be the leading exporter to the US with 86.970, followed by Mexico with 10.997, and Morocco 2.107(. About 5Y of the imported ore was used in the nonoilfield sector. Ground barite imports dropped from 19.8 kt to 8.8 kt (21,800 st to 9800 st) in 1987. Of this amount, 1.4 kt (1598 st) was used in drilling muds and the remainder of the non-oilfield use. During 1987, a few more grinding plants that supplied the drilling fluid market were closed. Along the US Gulf Coast, there are 13 operating plants versus a high of 31 in 1981. Cameron Offshore reopened its grinding plant at Cameron, LA. New Riverside Ochre Co. of Cartersville, GA, purchased a jigging-washing plant in Missouri and plans to place it in operation this year on a new deposit near Cartersville, GA. Milpark purchased Hughes Drilling Fluid in 1987 and operates under Milpark. US mine production will probably stay about the same as 1987. Price increases in the 10 % range for imported ore are expected due to water freight and the weak dollar. Baker Hughes estimates the average number of operating rotary rigs at 1070. A slight increase is expected in the non-drilling fluid market (chemicals, glass, and filler). Bauxite and alumina L. Baumgardner, US Bureau of Mines Domestic bauxite production in 1987, expressed as dried equivalent, was 581 kt (640,400 st), a 14% increase over 1986. US mine production amounted to less than 170 of total world production. Virtually none of the domestic bauxite was consumed in the production of primary alumina metal. About 30% of the bauxite produced by US mines was calcined to produce 117 kt (128,970 st) for use in abrasives, catalysts, chemicals, proppants, and refractories. Most of the uncalcined bauxite was refined to specialty aluminum oxide (alumina) forms. Metallurgical grade bauxite was imported from 10 countries in 1987. Principal suppliers of the 9.8 Mt (10.8 million st) were Guinea (4270), Jamaica (3501,), Australia (127), and Brazil (57). The average value, delivered U.S. ports, cif, as reported to US Customs Service, was $29.50/t ($26.76 per st). Calcined refractory grade baux-

Jan 6, 1988

Crushing and grinding The Crushing and Grinding Technical Committee There was substantial activity in the area of crushing and grinding with the improved outlook in the industry. The Crushing and Grinding Committee's theme of 1987's Annual Meeting in Denver was Fundamentals of Mechanical Design for Crushing and Grinding Mills. At the meeting, the concept of gearless sag mill variable speed drives was taken out of the closet, dusted off, and a wraparound motor was put on hard copy with the ordering of a 9.7- x 4.5-m, 8.2-MW (32- x 15-ft, 11,000-) sag mill. Additionally, comparisons were provided to the mill design of the gearless drive sag mill and the twin 4.5 MW (6000 hp) do variable speed drives placed on the drawing board for the Kennecott UCD Expansions. This involved a 10- x 4.5m, 8.9 MW (34- x 15 ft, 12,000 hp) sag mill. Differing opinions were also expressed in technical presentations pertaining to the need for quality mill specifications in design and manufacturing. J. Berney-Ficklin of Bechtel presented a paper outlining the need for quality design and manufacturing specifications in large scale grinding mills, and the overall cost reduction in capital and operating costs. Others presented differing specific views, but all emphasized a central theme. Quality and reliable designs in large mills should not be compromised. In-pit crushing applications continue to increase, overseas and in the US, in both mining and quarrying. Different in-pit crushing units have been classified as mobile, with integral transport systems; semi-mobile, typically modular systems that use separate transporters for repositioning; semi-stationary plants that must be dismantled before transporting and typically require earthwork and concrete foundation work; and stationary in-pit crushing plants, which remain in place for the life of the pit. The majority of equipment sales of conventional crushing and grinding circuits in 1987 were to gold mining operations. There have been two areas of end use: • conventional jaw/gyratory or impact crushing circuits preparing low grade ores for heap leaching; and • small scale sag/ball mill circuits preparing higher grade ores for classical cyanide leach/ recovery circuits. There was also continued interest in ABC and SABC circuits for both base and precious metals plants. High pressure roll crushers continue to attract considerable interest in the cement industry. There, they are used to prepare raw materials or clinker for subsequent ball/tube milling. However, they have apparently been less successful in the mineral industry where the energy savings/ capacity gains have been much less dramatic. Several papers covering the theory and application of these machines were presented in an industrial minerals session on cement at the SME Annual Meeting. The Third International Conference on Hydrocylones, held in England in October produced several papers of interest on classification and screening to the mining industry. In particular, a new cyclone apex, developed by Mt. Newman Mining, shows promise of reducing water flow to the cyclone underflow stream and, therefore, increased underflow pulp densities and reduced fines recycle in grinding circuits. A twin vortex hydrocyclone was also described and shown to give a sharper split than conventional units. Similar double cyclones were introduced in the 1950's, but failed to achieve widespread acceptance. This was due mainly to a proneness to blockage in the transitional zone. It will be interesting to see whether this latest variant can overcome this problem in the typical operation. A number of North American iron ore plants installed the capability to produce fluxed iron ore pellets. Most chose to grind the stone on site with circuits designed to grind taconite ore. Methods employed to grind this material included single-stage ball mills closed with fine screens, rod and ball mill circuits - both open and closed with cyclones - and semiautogenous mills, followed by ball mills closed with screens or cyclones. Dewatering and tailings disposal B.M. Moudgil and D.L. Sober, University of Florida Due to tightened environmental regulations and the need for more efficient land use, a greater interest in dewatering and waste disposal has developed. As a result, research efforts in flocculation, surface chemistry, and polymers science have focused on the problems related to the dewatering of solid mineral wastes. A few studies have been conducted to examine the flocculation process. Hogg et al., (1987) discussed the formation and growth of flocs. They determined the size and density of flocs was controlled by the physical conditions of the system (e.g. agitation,

Jan 5, 1988

By E. R. Pantos

US coal production increased 3% to a record 832 Mt (917 million st) in 1987, according to preliminary Energy Information Administration (EIA) data. Most of the increase was due to the unusually warm summer and the increased coal-fired electricity demand for air conditioning. Drought conditions in the Northwest lowered hydroelectric generation, contributing to the higher use of coal by electric utilities. However, excess production capacity and increased competition from natural gas added further downward pressure on delivered coal prices, continuing the declining price trend of the last several years. Coal production by region Appalachian coal production reached 402 Mt (443 million st) in 1987. This is about 3% more than in 1986 and just short of its 1984 peak. Virginia produced 7% more than its 1986 level, due to increased coal-based electricity demand. Smaller percentage increases were attained in eastern Kentucky, Pennsylvania, and West Virginia. Ohio and Alabama were the only major coal-producing states in Appalachia that produced less coal in 1987 than in the previous year. In the Interior region, 1987 coal production reached a record 182 Mt (201 million st), about 2% above 1986. Illinois is the largest coal-producing state in that region. Production there fell about 3.7%, primarily because of lowered demand at electric utility plants in Alabama and Tennessee. However, this was more than offset by production increases in western Kentucky, Texas, and Indiana. After falling slightly in 1986, coal production in the West resumed its upward trend to a record 248 Mt (273 million st). Wyoming is that region's dominant coal producer. It mined 7% more coal than in 1986. Wyoming's increase offset the 11% decline in New Mexico production and smaller declines in other Western states. Coal consumption and prices Domestic coal consumption reached a record 759 Mt (837 million st) in 1987. Most of the increase resulted from the unusually warm summer that led to higher than normal peak demands for electricity in the third quarter. Electric utility coal consumption was also boosted by the below-normal hydroelectric generation that resulted from low water levels in the Northwest. These factors more than offset the effects of increased nuclear power generation and competition from natural gas. As a result, coal provided 56.9% of electric utility generation in 1987, compared with 55.7% in 1986. Electric utilities consumed a record 651 Mt (718 million st) of coal. While electric utility coal consumption increased, the average cost of coal to utilities was down, from $1.58 per million Btu in 1986 to $1.52 in 1987. The average price of coal delivered to utilities in 1987 was $35.09/t ($31.84 per st), the lowest since 1981. Coal prices were held down by a glut of coal supplies and by a decline in the average price of natural gas to electric utilities. Coal consumption at coke plants in 1987 was 2.6% above the 1986's 32.5 Mt (36 million st). This increase reflects steel's recent resurgence. Coking coal demand, though, was reduced by the increased use of continuous casting and electric furnace technologies. The average price of coal delivered to coke plants fell from $56.02 to $51.35/t ($50.83 to $46.59 per st). Coal consumption in the industries other than coke plants amounted to 68.2 Mt (75.2 million st) in 1987, slightly less than in 1986. Coal lost part of its market share to natural gas, which was priced favorably relative to coal. The average price of coal delivered to manufacturing plants was at its lowest level of the current decade. It fell from $39.50/t in 1986 to $37.27/t ($35.84 to $33.81 per st). Residential and commercial coal consumption fell to 6.2 Mt (6.9 million st) that is 9.8% below 1986 and the lowest since 1980. This decline is also attributed to the relatively low price of natural gas in 1987. Coal stocks Coal consumers held 169 Mt (186 million st) of coal stocks at the end of 1987, 5.9% above the 1986 year-end level. Most of this increase was due to stockpiling by electric utilities in anticipation of a possible strike by the United Mine Workers of America early in 1988. Stocks at electric utilities increased to an estimated 154 Mt (171 million st) at the end of 1987, 5.6% higher than the previous year. This was much lower than 1984's stock buildup. Coke plants increased their coal stocks by 30% in 1987 to 3.5 Mt (3.9 million st), rebounding from the unusually low inventories of 1985 and 1986. Other industries increased their stocks slightly in 1987. Coal producers and distributors ended 1987 with 25 Mt (28 million

Jan 5, 1988

By E. D. Attanasi, M. W. Bultman

Most statistical measures of mineral exploration continued downward in 1986. Prospects in 1987, however, appear to have brightened for exploration as the overall economic health of the mineral industry improved. The Society of Economic Geologists (SEG) survey of US and Canadian firms documents the marked decline in US mineral exploration since the early 1980's. From 1981 through 1986, the total exploration expenditure by US firms declined by more than 73% (Fig. 1). Exploration expenditures by US firms declined by 66%%. US based professional exploration staffs were slashed by 70% (Fig. 2). Also, many firms have written off some reserves because of weak markets or have not delineated new reserves to replace production. The Canadian government reported that between 1981 and 1986 Canadian molybdenum re¬serves had declined by 30%, lead and zinc reserves by 20%, and nickel and copper reserves by 15%. The SEG survey also shows the immediate impact of the decline in the dollar on US exploration expenditures abroad. Between 1981 and 1986 the share of the exploration dollar spent by US firms outside of the country declined by nearly one-half and exploration acreage abroad declined by 69%. The downward trend of the last six years may finally be near the end as a leaner and more efficient minerals industry starts to gear up for a period of increased activity. An industry survey reported to Mine Development Bimonthly (Metals Economics Group) indicates that mining firms were expected to increase exploration expenditures in 1987 by at least 10% above 1986 levels. Worldwide expenditures for 1987 by companies covered by the report were expected to top $800 million. It is the first time since 1984 that an increase in exploration expenditures was expected. Also, the US Bureau of Land Management reported a 30% increase in new mining claims for fiscal year 1987 over fiscal year 1986. The bulk of the increase in claims was in states having intense gold exploration, particularly Washington and Oregon. Much of the optimism is undoubtedly due to the increases in metal prices that occurred in 1987. Some of these increases include gold, average price up about 20%; copper, average price up 24%; aluminum, average price up 26%; and nickel, average spot price up 20%. The SEG survey shows precious and base metals accounting for 89% of the exploration expenditures in the US in 1986, up 52% from 1981. The US Bureau of Mines estimates that 80% of US exploration activity in 1986 was directed entirely at gold (1986 Minerals Yearbook). Worldwide exploration plans indicate the continued dominance of gold exploration. New programs were announced for Ghana, Malaysia, and Indonesia. Major new exploration programs were also launched for lead-zinc sulfides in Morocco, platinum and palladium in northwest Brazil, rare earth minerals in Greenland, diamonds in Indonesia, and heavy minerals off-shore Australia. Significant gold discoveries were made at Angels Camp in Oregon; South Africa, near Potchestroom; India, in the Chitradgra district; Northern Ireland near Mt. Speerin; Chile, San Cris-

Jan 5, 1988

By J. D. Morgan

Introduction In 1987, the US economy continued to grow steadily, reaching an annual rate of $4.6 trillion in the last quarter. The value of domestically processed mineralbased materials rose slightly to $250 billion. The value of US metals rose sharply to more than $7 billion. Industrial minerals rose slightly to $18 billion recycled scrap was valued at $4 billion. Metal prices rose sharply toward year-end. A number of mining and metal companies experienced increased profitability, fostering more optimism about the future. Consumer demand strongly affects mining because the US economy is relatively saturated with long-lived products. Consumer, mortgage, and federal debt continue to rise. 244 million citizens already possess 170 million licensed motor vehicles and 100 million dwelling units. New car production fell 9% to 7.1 million units, but truck and bus production rose 9% to 3.8 million units. New housing starts fell 10% to 1.6 million units. Excess productive capacity exists not only in the US, but also in many other countries. Consequently, the US mineral industry is encountering stiff competition from others, as well as increasing competition from newer engi¬neered materials. Domestic production of plastics rose 9% to 25 Mt (27 million st) - on a volume basis, double all metals. Some 7% of petroleum goes to make petrochemicals including plastics. Imports of nonfuel mineral-based materials in 1987 were valued at $37 billion and exports at $24 billion. Imports supplied a significant proportion of total US consumption of several important mineral materials, including many classified as strategic and critical. In December, the Congress mandated that any major changes in stockpile goals be made only by law, and that the Department of Defense submit annually detailed stockpile supply/demand analyses. Concern about apartheid in South Africa continued, resulting in increasing interest about chromium, manganese, platinum-group metals, cobalt, vanadium, and gold. The National Critical Materials Council continued to monitor the US materials position. The Defense Production Act, authorizing priorities and allocations, supply expansions, voluntary agreements, and the National Defense Executive Reserve continues in effect through Sept. 30, 1989. Under the DPA, the US Bureau of Mines maintains the Emergency Minerals Administration. Further consultations were held with Canada to strengthen the North American defense industrial base. Coal production, 60% from open pits, rose 2% to 825 Mt (910 million st) valued at $21 billion. Nearly four-fifths was burned to generate 56% of US electricity. Exports included 42 Mt (51 million st) of metallurgical coal and 24 Mt (27 million st) of steam coal, with a total value of $3.3 billion. Domestic petroleum production fell 5% to 480 Mm' (3 billion bbl). Uranium mining, including recovery from phosphates, fell 4% to 5.9 kt (6500 st). Nonfuel minerals Major metals: Raw steel production - a major consumer of many minerals - rose 7% to 79 Mt (87 million st). Domestic iron ore production rose 11% to 44 Mt (48 million st), about 96% pelletized. Net imports, though, fell 8% to 11 Mt (10 million st). Raw steelmaking capacity fell 6% to 102 Mt (112 mil-

Jan 5, 1988

By Joseph C. Rota, Charles E. Ekburg

Introduction The Gold Quarry gold deposit is the largest bulk tonnage epithermal gold deposit in northeastern Nevada to be developed by Newmont Gold Co., formerly known as Carlin Gold Mining Co. Exploration and development of the deposit extended over a period of nearly 50 years before bulk tonnage mining became economically feasible. Proven reserves at Gold Quarry are currently estimated at more than 255 t (8.2 million oz.) of gold, accounting for more than 40% of the total Carlin Trend mineable reserves for 1986. Milling began in late 1985; dump leaching of lower grade ores began in May of 1986. The mill has exceeded the initial design throughput rate of 6.3 kt/d (7000 stpd) and is now processing more than 8 kt/d (9000 stpd). The dump leach facility will process more than 7.3 Mt (8.1 million st) of lower grade ores in 1986. The Gold Quarry ore body is to be developed by an open pit that will eventually be 1830 m (6000 ft) long, 1220 m (4000 ft) wide and 300 m (1000 ft) deep. The mine currently produces 77 kt/d (85,000 stpd) on a 24-hour-a-day, seven-day workweek. Planned pit production will increase to nearly 168 kt/d (185,000 stpd) in 1988. Production equipment currently includes one Demag H-/285, three Komatsu PC-1500 hydraulic shovels, two Cat 992C loaders and 21 90 to 135 t (100 to 150 st) haul trucks. Mining is conducted on 8 m (20 ft) benches within the Paleozoic

Jan 4, 1988

By A. Dale Wunderlich

Introduction Loss prevention programs have become absolutely necessary at any precious metals producing property. In the past eight years, one security company, specializing in precious metals mine, mill, and refinery security, has been involved in investigations at gold and silver properties that have resulted in 62 criminal convictions. Of those, all but five were employees, former employees, contract employees, or vendors for the company. Several of the cases involved losses of more than $1 million. The largest number of employees prosecuted from one investigation was 17. A recent case resulted in 12 criminal prosecutions and, several years ago, one involved an additional 12 criminal prosecutions. The most serious theft problem facing precious metals mines is employee theft. Is is estimated that 95% of the dollar losses from precious metals thefts can be attributed to employees. This does not mean there is no robbery or burglary exposure. There have been successful robberies, burglaries, and extortion cases. Most mining companies, though, provide better protection against external theft than from internal theft. That is one reason employee theft has reached epidemic proportions. Any product can be stolen No product is immune to theft. Precious metals investigations have involved the theft of high grade ore, dore, bullion, concentrates, precipitates, loaded steel wool, loaded carbon, and sump cleanup. Over a period of several years, this author's security agency has documented the theft of more than 22.5 t (25 st) of load carbon. Most mining companies do not protect the number one adsorption tank or the loaded carbon screens, which frequently leads to losses. Precipitates, electrowinning tank sludge, sump material, and concentrates are usually afforded lit¬tle protection because mine management believes it is too difficult to process. There are custom mills throughout the United States that will process any form of precious metals with no questions asked. This has become a particular problem since the certificate of ownership requirement has been eliminated by most states. Due to the large number of gold mines coming on line, many mine managers are being recruited from base metal mines, where primary security problems involve the theft of tools and company property. These managers do not understand the unique security problems associated with precious metals production. Consequently, they usually forego many security needs in the interest of economy. Unfortunately, numerous cases are on file where mining companies have suffered large losses because their physical security and their security procedures were not adequately addressed when the property was in its planning stages. Properly designed and appropriate equipment The most economical time to plan alarm/closed-circuit televi-

Jan 4, 1988

By J. A. Brierley, S. R. Hutchins, C. L. Brierley

Introduction Many gold and silver ores are refractory to conventional processing technologies. Thus, precious metals recovery is uneconomic. These resources can consist of ores, flotation concentrates, mill tailings, and other reserves. The refractory nature of these materials can be ascribed to such components as iron sulfide minerals, silica minerals, tellurides, organic compounds, and sulfosalts. Precious metals locked within iron sulfide minerals account for a large number of refractory gold ores. These minerals consist principally of pyrite or arsenopyrite. They must be oxidized to liberate the encapsulated precious metal and allow its contact with the leaching agent. Carbonaceous gold ores represent a unique class of refractory precious metal ores in general. Not only does gold encapsulation by iron sulfide minerals occur (Hausen, 1985), but these ores also contain organic matter that interferes with gold recovery by cyanidation. Direct interference can be attributed to either occlusion of gold within organic matter or formation of a stable gold-carbon complex. The magnitude of this problem is debatable. Wells and Mullens (1973) examined two carbonaceous gold ores and found no association between the gold and carbonaceous material. A more common problem is indirect interference, whereby the aurocyanide complex formed during cyanidation is sorbed by the native organic matter and is not available for recovery. This phenomenon is referred to as "preg robbing" (Osseo-Asare et al., 1984; Hausen and Bucknam, 1984). Guay (1981) summarized various methods that can reduce preg robbing during processing of carbonaceous gold ores. However, some are not applicable to carbonaceous ores that have significant amounts of gold locked in iron sulfide minerals. Several methods exist for oxidizing iron sulfide minerals and rendering refractory precious metal ore amenable to conventional recovery processes. These include various embodiments of roasting (Jha and Kramer, 1984; Brown, 1984; Arriagada and Os-seo-Asare, 1984; Smith, 1986), pressure oxidation (Muir et al., 1984; Beattie et al., 1985; Thompson, 1986; Weir et al., 1986; Argall, 1986), and chemical oxidation (Scheiner, 1971; Jackson, 1983; Van Weert et al., 1986). Each process has been successfully used for refractory precious metal ores. In many instances, however, their use is precluded by capital and operating costs relative to the value of the ore. An alternative to these methods is microbial pretreatment - a biological process whereby iron sulfide minerals are degraded and the liberated precious metal values can be recovered by conventional technologies. Bioleaching refractory precious metal ores is a relatively new concept compared to roasting and chemical oxidation. It is rapidly becoming established as a viable pretreatment alternative. Numerous studies have been conducted in the laboratory and on a pilot scale (Yudina et al., 1979; Lawrence and Bruynesteyn, 1983; Pol 'kin et al., 1985; Marchant, 1985; Livesey-Goldblatt, 1985; Gibbs et al., 1986). Comparative tests have demonstrated that bioleaching can be equal to or better than roasting or pressure oxidation in terms of product recovery and process economics (Fridman and Savari, 1983; Livesy-Goldblatt et al., 1983; Karavaiko et al., 1985; Gilbert et al., 1986; Hackl et al., 1986). Bioleaching's main drawback is that pretreatment requires days rather than hours. This can lead to excessive operating costs for difficult-to-treat ores. In all of the tests reported thus far, the leaching microorganism used has been thiobacillus ferro-

Jan 4, 1988

By Y. C. Kim, I. S. Roditis, P. K. Medhi

P. Mousset-Jones I found the article most interesting and timely. I consider it imperative that mine case studies like this one are undertaken and published so that the practicing mining engineer and geologist can obtain a better idea of what is the preferred estimation and grade control technique to use, given the site-specific geology, grade distribution, etc. Mining companies, with operating gold mines, need to be encouraged to either initiate such a study in-house or support a research project by financing a graduate student at a local university. The latter method is preferable since it not only provides research support but also an excellent training opportunity for young mining engineers and geologists. Ideally, what is needed is exploration drill-hole, blasthole, and mine production data that can then be used to assess the efficiency of different estimation and grade control methods by comparing the results obtained using the drill/blasthole data with the actual production data. It is hoped that more mining companies will realize that the rewards from this kind of research greatly outweigh the sometimes perceived problem with releasing data to a university. I noticed that the authors used the blasthole data to represent the actual values, the validity of which relies heavily on the two key assumptions with regards to blasthole assays and in-pit ore-waste selection procedures. Could the authors comment in more detail on these assumptions and what criteria they used to check the validity of the assumptions? Since the article was published, have the authors had the opportunity to compare their estimates with the actual production data? It would be interesting to compare other estimation methods with OK and IK. For example, how well did the polygonal method used at the mine compare with the results given in the paper? I would like to mention that B.L. Kwa completed a similar study (Kwa and Mousset-Jones, 1986) using exploration drill-hole, blasthole, and production data from the Alligator Ridge mine in Nevada. The study compared a variety of estimation methods, including IK, and the final results are shown in Fig. 1. The IK method exhibits the smallest difference between estimated and production results and is closely followed by the indicator moving window (Ind MW) method. Reference Kwa, B.L., and Mousset-Jones, P., 1986, "Indicator Kriging Applied to a Gold Deposit in Nevada," Proceedings, Symposium on Ore Reserve Estimation Methods, Models, and Reality, CIMM Annual Meeting, Montreal, Quebec, Canada, May, pp. 185194. Reply by Y.C. Kim We do concur with Professor Mousset-Jones with respect to the merit of such case studies performed at a local university. In answer to his request for comment on the validity of the two key assumptions made in our paper, we can only say that these are reasonable assumptions that are very difficult to validate. The assumption of blasthole assays being accurate can be partially validated by a careful analysis of the nugget component of blasthole variograms. The assumption that the in-pit ore-waste selection procedure in use was an effective one can only be validated through comparison between the mine estimates of ounces of gold versus the actual recovered ounces of gold at the mill. Neither one of these two assumptions has been validated to date due to several reasons. For example, the mine went through a change in management since the study. Similarly, no compelling reasons have been presented to perform detailed variogram analysis of the blasthole data. We do, however, believe that the obtained results (i.e., indicator kriging performs better than OK in a highly skewed deposit) will remain the same in relative terms, regardless of how valid these two assumptions may be. The most recent comparative study by D. S. Lindsey of the Montana College of Mineral Science and Technology also shows a similar ranking between ordinary kriging versus probability kriging, which is an extended version of indicator kriging. Reference Lindsey, D.S., 1987, "A Comparative Study: Probability Kriging vs. Ordinary Kriging at the Golden Sunlight Mine," MS Thesis, Department of Mining Engineering, Montana College of Mineral Science and Technology, Butte, MT, May, 81 pp.

Jan 3, 1988

The most complete mining show ever held in the United States and the largest exposition of its kind to be held anywhere in the world in 1988. That's how the American Mining Congress is billing its "MINExpo International '88," to be held April 24-28 at Chicago's McCormick Place, the largest exposition facility in the country. MINExpo International '88 will combine for the first time two previously separate AMC-sponsored shows - the International Coal Show and the International Mining Show. Starting with the 1988 show, MINExpo International will be held every four years. The next show, in 1992, will be held in Las Vegas. The MINExpo in Chicago will feature more than 500 mining equipment and services exhibits covering 3 hm2 (320,000 sq ft) of exhibit space. Exhibitors will display products ranging from small safety devices to large earth-moving equipment. MINExpo is one of the few trade shows selected by the US Department of Commerce for its Foreign Buyer Program. Commerce is working with US embassies around the world to publicize MINExpo and to form delegations of visitors from many countries. Overseas visitors to the show will be assisted at an on-site International Business Center. It will provide currency exchange, translation, and other services to foreign buyers. Registrants at MINExpo will also be able to attend their choice of 27 morning-only program sessions. At these sessions, international mining experts from industry, government, and academe will analyze technical, strategic, and policy matters and discuss the outlook for the industry. "Toward the 21st Century" is the theme of this year's program. The technical workshops and managerial seminars are designed to assist mining executives, engineers, and geologists as well as mine superintendents, managers, and foremen in handling their responsibilities. Based on previous attendance at AMC international mining shows, the association says that more than 25,000 persons are expected to attend the Chicago show. It is expected that approximately 15% of the attendees will be from foreign countries. The Soviet Union will be among those exhibiting at MINExpo. The Russians have leased more than 2.8 dame (3000 sq ft) of space to display their mining machinery and equipment. It is the first time that the Russians have joined in an exhibition of mining equipment in the US. The two largest manufacturers of mining equipment in the Soviet Union, Setmash and Avtoexport, will put on display in Chicago a variety of Russian-made equipment. It will range from 100 t (110 st) heavy-duty dump trucks and diesel engines to drilling, hoisting, and conveying equipment. In addition to some 400 US exhibitors of mining equipment and services at MINExpo, nearly 100 companies will be present from other major mining nations such as Australia, Canada, Great Britain, Japan, the Netherlands, and West Germany. And, for the first time, a Chinese manufacturer will take part in the AMC show, participating with its US marketing partner.

Jan 3, 1988

By Donna L. Boreck

Introduction Coal has been mined in the western United States since the mid-1800s. The resource is abundant in the West. Despite recent economic conditions, it remains an important part of the nation's energy warehouse. Many of the seams that comprise the western resource base are thick, some exceeding 61 m (200 ft). Multiple, closely-spaced seams or thick coals that split into two or more minable seams are also common. Historically, subsurface development recovered from less than 15% to 50% of these deposits (Matson and White, 1975). This resulted in a substantial loss of inplace reserve due to the limited height that could be mined using the available technology. In an effort to increase future recovery from such deposits, the US Bureau of Mines analyzed the potential for incorporating three thick-seam mining methods into western coal mines. These methods are high-face longwall, multislice longwall, and longwall caving. They were developed in Europe and are being used to mine thick coal seams in Europe and Asia. One aspect that will determine their success in the US is the geology of the individual deposit; namely, are the methods adaptable to the geologic conditions characteristic of western coal? This paper analyzes some of the geologic factors that would affect development of thick or closely-spaced seams using these mining methods. Occurrence of thick and closely-spaced seams Since mining conditions and methods differ around the world, a thick seam is often defined as a seam whose total thickness cannot be extracted using the available equipment. In the western US, the maximum extractable mining height is about 4.3 m (14 ft). For this research, a thick seam was defined as a minable seam 4.6 m (15 ft) thick or more. Since one of the seams is usually lost using standard mining methods, closely-spaced or split seams were also addressed. These were defined as two minable seams 1.5 m (5 ft) thick or more separated by 9 m (30 ft) of interburden. Thick or closely-spaced coal seams are common in the West. Their importance has not been documented due, in part, to the methods used to measure resources. In the past, all reserves greater than 1.1 m (42 in.) thick for bituminous seams and greater than 3 m (10 ft) thick for subbituminous seams were grouped together and were differentiated only by rank. Further differentiation by seam thickness or minability was not done. For this reason, reserve figures for thick or split seams are difficult to determine. By analyzing available published resource data, Ferm and Muthig (1982) addressed thick seam resources. They estimated a resource of 90 Gt (99 billion st) of coal (16% of the Western resource base) in seams 4.6 (15 ft) or greater at less than 610 m (2000 ft) overburden. Yet, a later study of Pierce and others (1982) on one thick seam deposit in the Powder River Basin estimated a resource of 103 Gt (113 billion st). Pierce (1986) reported that the overburden reached a maximum of 731 m (2400 ft). The resources in this single deposit exceeded the 90 Gt (99 billion st) total projected for the entire western US by 12.7 Gt (14 billion st). Due to such differences, this author chose to look at reported occurrences of thick or closely-spaced minable seams in place of resource figures, to verify the need to research thick seam mining in the West. An occurrence was defined as an isolated site where a thick seam or two or more closely-spaced seams were reported. The occurrences were derived from published material - mostly mine descriptions, measured sections, coal exploration logs, and oil and gas logs. Due to time constraints, the reserves associated with each occurrence were not determined. All data points were random. The analysis was limited to occurrences in Colorado, Wyoming, and Utah. Although source material available to the author was limited to general coal summa-

Jan 3, 1988

By Betty L. Gibbs, Jean A. Arcamone

Introduction Microcomputers are becoming more convenient to use at all levels in the business world, including the mining industry. The state of the mining industry requires that we become more productive and innovative in our analysis of deposits and operations. With the help of computers, examination of options to increase productivity can be performed quickly and inexpensively. Effective computer use to design underground workings combines the calculating power and speed of a computer with the technical expertise and judgment of an engineer. Computer programs can perform in minutes calculations that might take several months for an engineer. But the engineer must be on guard when using computers for calculations. It is easy to assume the results produced by a computer program are always correct. However, the computer is only a sophisticated calculator. It cannot recognize logical errors or transposition of numbers. Also, some intuitive or obvious decisions made by an engineer are difficult or impossible to program effectively. In this article, selected commercial programs are discussed. These programs can provide engineers with tools to evaluate engineering designs for underground mines. The programs perform much of the tedious calculation. The engineer, though, must still make decisions and conceptualize designs. The software mentioned in this article runs on microcomputers and minicomputers. The mention of particular software, however, does not imply endorsement. Mining projects After a decision has been made to proceed with an underground mining project, more detailed evaluation of the mining method and extraction sequence begins. If a mine is already in operation, schedules and plans are needed to more clearly define future production. Existing operations can benefit from identification of bottlenecks in material movement and produce extraction options to make the mine more efficient. Detailed studies for a new mine are based on the technical engineering design. These studies provide specific details to determine equipment requirements. Detailed studies done during a project are similar to short-term planning and control carried out daily by the mining engineers. The engineering design phase includes: • Study of the infrastructures - entries, shaft, access from surface to underground; • Definition of the mine layout, hydrogeology, geotechnical considerations, transport, and ventilation; • Choice of machines and equipment; • Mine scheduling, including waste extraction and production sequencing; and • Economics, including labor and supplies. Further detailed studies include: • Blasting patterns; • Detailed geotechnical calculations; • Secondary ventilation; and • Production cycles along with coordination of the workings. Objectives The primary objective of underground mine planning is moving material out of the mine at the least cost. Development of the production schedule considers location and volume of ore units, transport distance, equipment and manpower interactions, and grade or quality of material. Two methods can be used to determine the scheduled material removal: optimization or trial and error. The microcomputer programs discussed here do not cover optimization for underground mine planning. For several reasons, optimization is often a "black box" approach. Although optimization is possible with linear programming techniques, few mining operations can be described effectively with linear equations. An interactive trial-and-error approach is desirable because engineering judgment can be inserted as a plan develops. Because of the large number of factors in an underground operation, an optimization technique seldom covers all possibilities. Few of the programs available consider all of the possible parameters. The programs use an interactive sequencing or a simulation approach and are either event-oriented or deposit-oriented. The most desirable programs offer an integrated approach. They consider a broad range of operating conditions including equipment, labor, costs, material movement, timing, and mine layout, among other factors. The two types of models generally used in designing underground workings include: • The interactive model, which requires direct, incremental input from the user. Outlines of the section to be mined may show on the screen. The engineer causes the model to develop piece-by-piece. The program may offer feedback on parameters such as tons and grade, or other values, as the section is "mined." • The simulation model, which is usually an automatic technique. Parameters related to the process are entered. The program then calculates the mining sequence over a designated time period or until the economic material is exhausted. A simulation model imitates step-by-step performance of equipment or other processes.

Jan 3, 1988

By L. Eros, R. H. King

The US Bureau of Mines has funded several research and development projects in computerized mine monitoring and control. Hardware and software components have been sufficiently developed so that mine operators have been provided with an efficient means to comply with federal regulations and increase mine safety. Several cost benefits have been realized as well, particularly with increased conveyor belt haulage availability. Western Fuels-Utah Inc. approached the Bureau to assist in planning, installing, and evaluating a computerized mine monitoring and control system because of the agency's research experience in this area. The installation was planned for Western Fuel's Deserado mine, located in Rangely, CO. Since a large, complex, underground mine producing about 2.4 Mt/a (2.7 million stpy) of coal was projected, the company anticipated significant benefits in safety and efficiency through a computerized monitoring and control system. A major part of the cooperative program was to document and evaluate the system design, installation, and operation. This will assist others to adequately design, specify, install, and operate future systems. Mine description The Deserado mine plan and layout have important impacts on the monitoring system requirements. Long range plans are to produce 2.4 Mt (2.7 million st) of clean coal annually from two longwall sections and four continuous sections. Presently, two continuous miner sections operate under 213 m (700 ft) of overburden in the 2.3 to 2.5 m (7.5 to 8.5 ft) thick D seam to develop main, submain, and panel entries have developed for a longwall. These began operation in December 1986. Belt conveyors haul the coal from the mining sections to a 1.4-m (54-in.) belt located in the upper compartment of the slope. The lower compartment contains a hoist for men and material transport. From the slope, the coal moves to two 9 kt (10,000 st) raw coal storage silos, then to a 680-t/h (750-stph) preparation plant. After cleaning, a 5.5-km (3.5-mile) overland conveyor carries the coal to a clean coal slot storage and rail load-out facility. An electric locomotive then transports the coal to the Bonanza Power Plant in Utah. Allen-Bradley monitoring and control hardware and software controls the preparation plant, with two PLC-3 programmable controllers and a Process Control Industries D-1200 color graphics interface. The system operator uses three "smart" color video display units and an alarm printer for hard copy records. Originally, it also monitored and controlled the conveyors from the bottom of the slope to the top of the raw coal silos, the preparation plant, the overland conveyors, the main mine ventilation fan, and the hoist. Some of these features, though, were later transferred to the mine system.

Jan 2, 1988