Search Documents

By F. G. Crack, R. V. Ramani, R. L. Frantz

Management for mine construction and development differs from that needed for routine mine production and maintenance. An integrated approach to managing mine development projects must consider contract documents; management organization of a project; the project manager's role and the field supervisor's responsibility; and the use of scientific techniques for planning, scheduling, executing, and controlling projects. Professional project management encompasses the following: • Preparing contract documents that establish technical and financial schedules, and detail the responsibility for the physical work commitment. • Developing a project's organizational structure, to clearly define the roles of the project manager and the field supervisors. • Establishing project management and field supervisor relationships, to avoid ambiguity in assigning responsibility and to ensure desired project progress. • Using management science techniques, particularly networking techniques such as the critical path method for planning scheduling, executing, and controlling projects. Project Versus Production Management Project management differs from routine production management in the following ways: • Uniqueness: A project is unique. Production operations tend to be repetitive. The magnitude of one-time capital expenditures for many facets of mine development warrant special skills and attention. These professional project development skills must already be available by prior experience in the management team. • Personnel: In projects, personnel are usually assigned on a specialty basis and frequently change with the project activity. On the other hand, production personnel work together, more or less permanently. • Management Structure: In a project there may be several staff-line relationships that are not clearly defined and change with changing project activities. In a production situation, the lines of communication and authority are usually well defined. • Time Frame: A difference between project and routine production management is that project activities have comparatively less well defined durations and often tend to be relatively short-term. Production usually has both long-term and short-term plans and well defined long-term and shor-term goals. In project management, formal, critical, short-term reviews are frequently required. In production management, five year plans can be formally adjusted quarterly and annually. Short-term weekly or daily reviews can be informal. • Response to Delays: Delays in a development project may occur without anyone being immediately aware of their existence or suspecting the magnitude of consequence. In contrast, any delays in the production process can be easily identified from prior results comparison. Additionally, the response is quick, usually in a set routine. This can be traced back to the management structure and personnel. • Control Techniques: Measurements of project progress for control are not easily made due to the variety of activities that are carried on at the same time by different work groups. The yard-sticks of performance measurement for individual activities, let alone for the total project, are not easily established. However, due to the difficulty in detecting project delays, a workable control system is vitally important to a project manager. To apply a scientific project control technique such as "management by exception" requires specific planning and monitoring from the project manager for each activity in the project. Production and productivity are quick and effective yard-sticks of measuring performance in a routine operation. Control techniques required in production management usually revolve around these measures. Construction Contracts The construction contract is an important document that establishes contract scope, technical and financial details of the work, and achievement deadlines. It may also serve as the contract document to pay for work done and to verify field progress with planned progress. In practice, it is a good idea to develop a job-specific contract. This whole area is replete with legal precedence and procedures, and it is not the intent here to deal with the intricacies of establishing a contract document. But it is necessary to have an understanding of major contract types. Construction contracts are extremely important legal documents. They may vary in work specifications and enforcement of the provisions. Due to their nature, they must be composed with legal help and will take some time to compile. Even with all the precautions and provisions, it is not uncommon to find owner and contractor disagreeing. Therefore, it is important to include a way to resolve any difference quickly and to incorporate aspects of the contract as part of an overall management control tool for efficient project management.

Jan 7, 1982

By M. Churchill, V. R. Degner

Over the past two decades, declining ore body grades and increased operating and construction costs have provided an incentive for the development of progressively larger flotation machines. As a result, the 1.7-2.8 m3 (60-100 cu ft) flotation machine of the 1950's and 1960's is being rapidly replaced by large volume machines. The result has been improved flotation machine specific capacity (tph processed per sq ft of floor space); specific power (hp per tph processed); and process control simplicity. The recent development and satisfactory plant evaluation of the 28 m3 (1000 cu ft) flotation machine allows economic and operating advantages in high tonnage mill applications. Some principles of mechanically induced air flotation and the development of the large 28.3 m3 (1000 cu ft) flotation machine are reviewed here. Performance evaluation in beneficiating metalliferous ores-copper, zinc, and iron-is also given and recently completed plant results provided. Mining lower grade ore bodies results in the need to process increased tonnage in the concentrator. This greater tonnage requires more individual flotation machines, unless individual machine capacity, or cell volume, is increased. As the ore processing rate of the concentrator increases, the benefits of progressively larger individual cells in the flotation section become more significant. The accompanying figure illustrates the advantages of a larger flotation machine. In the figure, the number of machines in the rougher-scavenger section is related to the plant tonnage for three sizes of flotation machine: 8.5 m3 (300 cu ft), 14.2 m3 (500 cu ft), 28.3 m3 (1000 cu ft). The 28.3 m3 (1000 cu ft) flotation machine results in 95 fewer machines, compared to the 8.5 m3 (300 cu ft) machine at 45.4 kt/d (50,000 stpd) feed. The flotation cell reduction is, of course, doubled at a plant production rate of 90.7 kt/d (100,000 stpd). Using fewer flotation machines saves floor space. The 14.2 m3 (500 cu ft) and the 28.3 m3 (1000 cu ft) machines result in a floor area reduction, relative to the 8.5 (300 cu ft) machine requirements, of 134.7 and 418.1 m2 (1450 and 4500 sq ft), respectively, for the 45.4 kt/d (50,000 stpd) rate and 269.4 and 836.1 m2 (2900 and 9000 sq ft), respectively, for the 90.7 kt/d (100,000 stpd) rate. In addition, flotation practice has shown that the "specific power intensity"-power per unit cell volume-is less for increased cell size. This results in a power draw reduction, for the rougher-scavenger circuit, of between 552 and 686 kW (740 and 920 hp) for the 14.2 and 28.3 m3 (500 and 1000 cu ft) machines, respectively, when processing 90.7 kt/d (100,000 stpd). Fewer cells improve machine control and simplify maintenance needs while reducing floor space and power requirements. These are tangible incentives for the development of large flotation machines for high tonnage applications. Flotation Principles The accompanying figure shows how key hydrodynamic regions influence the performance of a mechanically induced air flotation machine. Air is induced into the fluid from the top of the cell, due to the mechanical action of a rotating impeller. The impeller circulates the liquid, or pulp, from the bottom of the cell. The result of these dual flow paths is the mixing of the two fluids and one solid phase in the highly agitated region where physical contact between the air bubbles, and the solid particles to be floated, is accomplished. The particle to be floated is assumed to have a properly prepared hydrophobic surface prior to flotation. Upon leaving the three-phase mixing region, the "floatable particle-air bubble matrix" and

Jan 7, 1982

By D. C. Torre

Since the early 1960s, there have been efforts to develop and produce reliable continuous haulage systems capable of taking the full output of a continuous miner and transporting it, in one continuous flow, from the face to the tipple. The majority of the successful continuous haulage systems were placed in operation in the early 1970s. These were all of the bridge conveyor type. They usually consisted of bridges and mobile bridge carriers (MBC) attached at the inby end to the continuous miner and at the outby end to the panel conveyor itself. These successful bridge conveyor continuous haulage systems are either of the belted or chain type. The most successful belt type continuous haulage systems are those manufactured and marketed by the Long-Airdox Co. Until early 1977, Jeffrey Mining Machinery Division manufactured and marketed the most successful chain conveyor type haulage sys¬tems. In 1977, Long-Airdox reentered the market with a chain-type system to complement its belted system. The original bridge-type continuous haulage system was introduced to the coal mining industry in the early 1960s by the old Long Co., a predecessor to the current Long-Airdox Co. These original units were of the chain conveyor type. In the early 1970s, there were also developments in continuous haulage, employing different material handling media. These in¬cluded the Serpentix, a flexible type belt, introduced by the Joy Manufacturing Co. There was also a serious attempt to introduce hydraulic-type continuous haulage by Consolidation Coal Co. and Conoco Research. Despite some startling successes, particularly with the bridge-type haulage systems, the general and widespread application of continuous haulage has eluded the mining industry. Some of the problems are related to underground conditions; others to people, both management and labor. One of the greatest obstacles to universal success continues to be the difficulty of accepting the philosophy as well as the machinery of continuous haulage. Nevertheless, efforts continue to spread the success of commercial and viable systems in the industry. There is also effort to improve on these systems, and on methods for their successful use. In addition, efforts continue, with private and public support, to develop new types of continuous haulage equipment and systems. Bridge Type System Developments Because they have already been successful in some US and overseas mines, new developments in bridge-type systems will first be touched on. The Long-Airdox Co. has continued to improve both its belted and chain continuous haulage system. In the belted system, the company recently introduced a new design that will be mainly applicable in higher coals and in noncoal mining applications, as shown in the accompanying figure. This new system is equipped with 305-mm-diam (12-in.-diam) pulleys in the bridges and mobile bridge carriers, in place of the 150-mm-diam (6 in.-diam) pulleys in the standard system. The modification is designed primarily to improve belt life and keep belt problems to a minimum. An operator, the Clinchfield Coal Co., a Division of Pittston Coal, developed the detaching of the bridge-type continuous haulage system from the miner by placing a mobile bridge carrier at the head of the string. However, Long-Airdox and Jeffrey have now made this an option to their at¬tached-type system. In the US, there are many chain type haulage systems detached from the miner with an extra MBC at the head. There are two such belted systems

Jan 7, 1982

By W. C. Yates

Lack of visibility from large, open-pit haulage truck cabs has become a serious safety problem. Anaconda conducted a research program to develop a low cost system to alert haulage truck operators to small vehicles present in blind areas. Several systems were developed and tested. As open-pit haulage truck size has increased, so has the size of the blind areas. Mine utility vehicles, pickup trucks, and cars are concealed within these blind areas and become safety hazards. Figure 1 shows the typical blind areas of a 136 t (150-ton) haulage truck. The areas of greatest concern are at the rear center and front right corner of the truck. In these "no visibility" areas many small vehicles have been crushed by large haulage trucks at various mine sites. In most instances, the occupants escaped the vehicle before it was destroyed. But injuries and death have occurred. In most cases, the accidents were attributed to negligence or carelessness by the small vehicle driver. The limited visibility problem still exists, though, and a solution is needed. Initial Solution The usual plane mirror on the driver's side and the convex mirror on the right front of the haulage truck allow only limited rear visibility. The typical, right side convex mirror is generally small and difficult to locate at a glance. This convex mirror also presents an image that distorts distance perception. These mirrors are of¬ten broken and immediate replacement not demanded or made. The US Bureau of Mines, in a contract with M.B. Associates, San Ramon, CA, developed an improved visibility system. It consisted of a larger, left view mirror and unique, blind area viewer. The large 230 x 690 mm (9 x 27 in.) left mirror has a small convex spot mirror near the bottom. The entire unit can be quickly replaced if broken. The large size provides a full view of driver orientation features such as the rear tire and the top of the load bed. The right 300 x 410 mm (12 x 16 in.) mirror has a convex surface and is quite rugged. The 510 mm (20 in.) spherical radius presents the operator with some distance distortion, but objects in its view are easily seen. The "blind area viewer" consists of a modified fresnel lens that allows the driver to "look around the corner." Installation of three of these lenses on the front of each haulage truck is rec¬ommended for adequate blind area coverage. This system significantly increases an operator's field of view and allows viewing of objects within about 3 m (9.8 ft of the truck. Many open-pit mines are nor mounting on smaller vehicles a long whip with a flag and lamp or both. This increases vehicle visibility to haulage truck operators. The whip is permanently attached to the mine vehicle. It can also be magnetically attached to transient vehicles. The whip system. though, is inadequate for visibility in the critical rear and right front blind areas. Alternate Solutions All of these visibility aids as¬sume an attentive driver. In addi¬tion, areas such as the rear blinc, area are not covered. Based on the inadequacy of existing visibility systems, Anaconda made a com mitment to further the truck de¬tection technology. The best ap¬proach was considered to be ar active system. It would notify the haulage truck operator that an en¬croaching vehicle is present. Sev¬eral systems were considered, in¬cluding ultrasonics and elec¬tromagnetics. For the ultrasonic system, com mercial and in-house design were looked at. Designing an( building transducers with the spe cific beam shape to match the haulage truck blind spots re¬quired a major technological breakthrough. False alarms ap¬peared difficult to prevent en¬tirely. They were caused by pass¬ing, trailing, or leading vehicles a., well as nonthreatening objects. As a result of these problems, the ul¬trasonic technique was not pur sued. An alternative, an electro

Jan 7, 1982

International Technology for the Nonferrous Smelting Industry, by T. K. Corwin et al., Noyes Data Corp., Mill Road at Grand Ave., Park Ridge, NJ 07656, 413 pp., cloth, $36-Describes current and new production processes, and pollution control technology, in the primary nonferrous smelting industry in the US and abroad. The methods described are intended to reduce costs, increase production, and lower pollution levels. Techniques used in copper, lead, and zinc smelting are emphasized and, whenever possible, the authors describe pollution control practices.

Jan 7, 1982

By Marianne Snedeker

In January we published a questionnaire asking about the content of MINING ENGINEERING and about your interests. At the same time we hired an outside firm, READEX Inc., of St. Paul, MN, to send the same questionnaire to a sampling of about 1000 US members, selected on an nth name basis, so that we could have some preliminary numbers for the Annual Meeting in February. READEX sent us the final results of its survey in March. At that time, 525 responses of the 992 surveys sent out had been returned, for a 52.9% response, an extraordinarily high return for a low-key (no incentive for return) random sampling. On May 7, we cut off on tabulating returns from the magazine so that we could report the results to you in this issue. At that time, we had 594 questionnaires returned. Our 594 and READEX's 525 (we have assumed that relatively few people returned both), represent a 1119 return, about 3.5% of the approximately 32,000 who received the January issue of ME. About ME Through responses to the questionnaire, we were hoping to learn more about you, your interests, and how the magazine could better serve you. Those of you who responded, told us something positive-you look at or read the magazine. Of the 1119 respondents, 1068 or 95.4% indicated that they had read or looked through the November and/or December issues. Those of you who refer to the magazine once are 466 or 42.6%. Those of you who refer to the magazine two or three times are 559 or 51.1%. Those of you who refer to the magazine four or more times are 68 or 6.2%. How much time do you spend reading the magazine? Of those responding to this question: 186 spent up to 1/2 hr 16.6% 590 spent up to 1 hr 52.7% 292 spent 1-2 hr 26.1% 51 spent more than 2 hr 4.6% In an informal survey among our staff, we determined that most people spend 1/2 to 1 hr reading magazines to which they subscribe at home. Does that match your experience? Many of you, 764 or 69.4%, clip your magazine for further reference. Also, many of you, 513 or 64.2%, do not pass your copy on to another reader, indicating perhaps that you are clipping it or receiving the magazine at home. Those magazines that are passed on reach: 2 people - 159 - 20.0% 3-5 people - 95 - 11.9% 5 or more - 31 - 3.9% Answers to what portions of the magazine you find useful indicated that the top three were Industry News, feature articles, and Technical Papers; see Table 1. The "other" category included advertising-display, classified, and employment-Coming Events, product information, Washington Survey, new books, the reader service card, and Engineering Fundamentals. Of those responding, 797 or 75.3% indicated a preference for dual notation of SI (metric) with English units; 228 or 21.5% preferred all SI units; while 34 or 3.2% preferred SI with dual notation of other metric units. Based on the preliminary numbers reported by READEX for this question, the MINING ENGINEERING Committee in February voted to return to a policy of dual notation. This decision has been implemented. We asked for your appraisal of the technical level of the magazine. Of those responding, 78 or 7.4% indicated it is too technical, 147 or 13.8% indicated it is not technical enough, and 836 or 78.8% judged it to have the correct tech¬nical level. In response to the question about whether you like to read an occasional feature that is not technically oriented, 32 said no, but an overwhelming 97% (1024) said yes. Of the specific topics, 785 like history, 558 political or socioeconomic articles, 440 career development, and 373 human interest. Other topics suggested included new disciplines, mineral resources of the world by

Jan 6, 1982

By Carl Eschman

Productivity from large walking draglines is primarily dependent on operator skills. This machine may be in operation three shifts a day, 364 days a year, and its output is directly related to coal uncovered and mine profitability. Dragline operators must have highly developed manual skills and be knowledgeable in mine planning and working strategies. When using equipment costing more than $25 million, some formal training is usually required before an operator is allowed to assume complete con¬trol; however, dragline operators rarely receive any structured training before operating these giant excavators. A form of apprenticeship is usually followed where an operator candidate progresses from a groundsman to an oiler position. As an oiler, he is permitted to operate the dragline for short periods under supervision. After apprenticeship, the operator is considered sufficiently prepared to operate the largest, most powerful machine at the mine. The apprenticeship training method has obviously provided the surface mining industry with skilled dragline operators; however, conditions are arising that require a realistic and effective training tool that can be accessed by mining companies. New mines -either planned, under construction, or recently opened in the West-do not have access to a pool of experienced operators and oilers as do Midwest mines. As coal mining activities increase in both the West and Midwest, demand for trained dragline operators could be required in a short amount of time. Also, the more productive techniques along with sound basics of strip mining are sometimes lost in the informal "OJT" training method. Modern draglines are the pacemakers of the strip mine, and are simply too expensive to be used as a training device where lost productivity and susceptibility to damage can directly affect mine output. The Dragline Training System is a logical first step in formally educating or retraining operators. The program, started by the US Bureau of Mines and continued by McDonnell Douglas Electronics Co. under contract with the US Department of Energy, was installed and evaluated at DOE's Carbondale Mining Technology Center in Carterville, IL, last year. It is now being operated by Southern Illinois University at Carbondale. System Description The Dragline Training System addresses specific environments and work practices encountered during an actual mining operation at a midwestern US surface mine. This area was chosen because of its high number of strip mines using large walking draglines. Most draglines in the region are Bucyrus-Erie 1370, 1450, and 2570 models, so the dragline trainer was patterned after the company's 1370 machine. Operating and emergency controls are sufficiently standardized for most large walking draglines, and peculiar dynamics and responses from any specific dragline can be programmed into the computer system. The computer simply prompts the user to select the manufacturer and any peculiar response or rate changes needed. A 46-m3 (60-cu yd) bucket is simulated, but for closer simulation, various bucket configurations can be provided. Dragline Trainer The dragline trainer uses the TV-model simulation technique. A scaled model of the dragline is positioned in a model mine. A television camera is positioned at the operator's theoretical eyepoint, and the view captured is projected into a large screen in full scale. The screen is positioned in front of the operator seated in a full-size cab at Bucyrus-Erie controls. By manipulating the controls, the trainee can operate the model dragline and observe its reaction in the television display. In addition to housing dragline controls and consoles, the wooden, oversized cab contains the digital computer, terminal, video recorder and monitor, power switch box, air conditioner, and has enough room for the instructor and five student observers. The 50:1 scaled dragline model contains servo-controlled functions for hoist, drag, swing, delta swing, and longitudinal and lateral position. The delta swing provides bucket lag during swing and a realistic pendulum action when the swing is terminated. The over-responsive second order servo system is designed to provide hoist, drag, and swing rates exceeding present draglines. In all cases, position servos are used for better control and sta¬bility. The normal rate operation of an actual dragline is computed for the specific machine and presented to the servo amplifiers as iterative position commands increasing or decreasing

Jan 6, 1982

By John H. Bassarear

How best to grind? This article compares conventional crushing and grinding circuits to semiautogenous circuits, reviews recent installations of each circuit, and describes seven methods of using autogenous or semiautogenous techniques. In addition, steel and power consumption data are reported and benefits of a dedicated digital computer are discussed. Size reduction is the most expensive operation in most mills. Crushing and grinding are usually the greatest part of capital costs. They often make up 60-70% of total mill operating costs. Picking the proper crushing and grinding method must, therefore, be done with great care, so the best circuit is chosen. In the past 10 years, there has been a strong trend toward using autogenous or semiautogenous grinding in mills throughout the world. Autogenous grinding is favored when the ore is quite competent and a fine grind is needed. Semiautogenous grinding is applied when fine crushing could cause severe problems or when ore varies in hardness or competency. The taconite iron ores of northern Minnesota fit the description for an autogenously ground ore and many are successfully ground that way. Most im¬pressive are the nine lines of 11 x 4.9 m (36 x 16 ft) mills powered by 9 MW (12,000 hp) motors at Hibbing Taconite. Porphyry copper and molybdenum ores fit the description for semiautogenous grinding. Recent installations include Highmont in British Columbia, Canada, and Quintana in New Mexico. Sampling Many mills have been built based on inadequate sampling data or insufficient tests. With the cost of many mills exceeding several hundred million dollars, it is mandatory that geologists, mining engineers, and metallurgists work together to prepare representative testing samples. Simple, repeatable work index tests are usually sufficient for rod and ball mill tests. However, pilot plant tests on 50-100 t (55-110 tons) of ore are frequently necessary for autogenous or semiautogenous mills. Preparation and selection of the test sample is of utmost importance. Procedures for autogenous and semiautogenous mill pilot plant tests are relatively simple for those experienced in running them. Reliable and repeatable results can be obtained if simple, fundamental procedures are followed. The accompanying figure shows a typical conventional crushing-grinding circuit with three stages of crushing followed by ball mills or a rod mill-ball mill combination. This flowsheet is typical of many mills that have been built throughout the world. Also shown is a typical semiautogenous (SAG) circuit with feed coming directly from a primary crusher, and the semiautogenous mill product going to the separation process. Many similar semiautogenous circuits are built today because they are simple and flexible, lend themselves readily to high tonnages, and usually cost less to build and operate. With some ores, it is possible to send mine-run ore directly to the semiautogenous mill, eliminating the need for a primary crusher, as at Benquet's Dizon mill in the Philippines. An autogenous or semiautogenous circuit, as the name implies, uses the ore itself to assist in the grinding process. Generally, for this type of circuit, the ore must be competent so large ore chunks can be used to grind smaller ones. If ore alone is used, then the circuit is autogenous; but if balls are added to supplement the charge, then the circuit is termed semiautogenous. Ore competency is not always a criterion, to break up large pieces and wash away cementing material. Autogenous and semiautogenous mills have been very successful on relatively soft uranium ores where the values are frequently found in the material that cements together the sandstone grains. Autogenous Circuits When an ore is hard and competent, it is always possible it might make good "pebbles" that could be used for fine grinding media. Seven methods have been tried using combinations of autoge-

Jan 6, 1982

By William L. Young

There is an old saying in Canada: "Mines are made as much as discovered." What follows is Young's perception of his experience developing and financing the Cochrane Hill gold mine project. In 1974, I came back from rutile and zircon exploration and mining in Australia. I became interested in a copper, lead, and zinc project in the Bathurst District, New Brunswick. Much field work had already been done but I was convinced that a reinterpretation of the geophysical work left room to enlarge on the known mineralization. So, with my own money I put a property deal together, found an underwriter willing to raise $100,000, and had a lawyer produce a prospectus. The prospectus was ultimately accepted for filing by the Ontario Securities Commission and I acquired funding and began work. It did not take many drill holes to determine that the interpretation was not geologically valid. However, while drilling was going on, geophysical and geochemical explorations indicated interesting anomalous zones elsewhere on the property. But by now the base metal market climate had soured and the $50,000 I had left was not enough to evaluate the new results. So I decided to farm out the property. A data folio was produced and the property was optioned to a major mining company, with Northumberland Mines Ltd. retaining a 20% free, carried interest. By 1976, the market for junior issues was so bad no under¬writer would even talk to a geologist and I still had the $50,000 in the bank and was looking for something to initiate. A Project That Went Nowhere Market research indicated that the Toronto area imported fine calcium carbonate fillers from Georgia, Alabama, and Vermont. I was aware of the specs and the fact that there is a large marble belt in Eastern Ontario. After some prospecting, I found an interesting deposit. The product was slightly high in silica and low on brightness. Research work eliminated the silica and corrected the brightness. So, with insufficient money we launched a feasibility study. This included diamond drilling, bulk sampling, special fine grinding and air classification tests, and an in-depth market survey. Our product was as good or better than those on the market. Our advantage was that delivery could be made by a two-hour truck haul to the customer. The present system of rail delivery had many problems, especially in winter. Despite everything looking rosy, we ran into a stone wall. The underwriters were singularly unimpressed because the public saw little glamour in a substance most people had never heard of. The issue would have been difficult-if not impossible-to sell. Banks and government agencies took the position that if we could get long term take-or-pay contracts then they would lend the required capital. None of the suppliers, however, would even consider a contract until production had begun and they could evaluate the production material. It was a classic "catch 22" situation. I have gone into this in some detail to show how tough the industrial mineral market can be. We eventually optioned this calcium carbonate property to a major corporation. The option agreement would give us a free, carried 15% and the right to buy up to 40% for contributing 25% of the production costs. But the experience left my company in poor financial shape. To survive, I think the entrepreneur-geologist must always have at least one project in reserve, an emergency plan. I had been searching out a new project to work on, after the calcium carbonate option was wrapped up. It was gold. Gold intrigued me and I knew quite a bit about Nova Scotian gold. I felt that with any rise in price, many of the former high-grade gold mines would have interesting potential for the larger, low grade portions of the deposits. That is how I happened on Cochrane Hill, where much work had been done in the early 1970s when gold as $4.82/g ($150/ oz). This time my timing was good. No sooner had Northumberland signed an option agreement than gold prices started to rise. In six months, they went to $27.331g ($850/oz). Even so, financing gold prospects in early 1980 was still not easy. It had been years since gold financing had been undertaken. A whole new generation of investors, with no knowledge of gold mining, had grown up. So, with accounting and legal council, we decided on a semiprivate "seed money" offering. Under the new Ontario Securities Act, this was a new-and partly tax sheltered-concept. At the time, it was very innovative.

Jan 6, 1982

Hoses provide a variety of critical functions in nearly every mining operation. Care must be taken when selecting, installing, and maintaining hoses to insure maximum hose life. This article provides some tips on selecting, installing, and maintaining hoses, and gives some background on hose construction and safety. In the mining industry, hoses are used for everything from hydraulic systems that power drills and hammers, to suction systems that carry away dust and debris. Hoses are used on such a large scale that a detailed discussion of specific applications would require many volumes. Dayco Corp. has, however, provided these basic and brief guidelines on how to select and maintain hoses for mining applications. Hose Construction Industrial hoses are classified as much by construction as they are by application. So, it is a good idea to start any discussion of hoses with a description of their basic construction. There are four basic components to hoses: the tube, reinforcement, cover, and couplings. The tube is the inner core or lining, and is usually made of smooth rubber or plastic. Rubber or plastic composition is scientifically determined to be compatible with the materials passing through it, such as fluids, chemicals, gases, or substances. Other considerations in compounding rubber or plastic for the tube are temperature ranges and stresses. In practice, the required compound can be precisely chosen from various charts listing them according to application. There are, however, applications where the compounding of tube rubber or plastic must be customized. The reinforcement hose layer immediately surrounds the tube. As its name implies, this layer gives the hose strength and provides protection for the tube component. Reinforcement must be able to contain the inner forces-pressure and shock-transmitted through the tube, and such external forces as twisting, bending, and crushing. So it is usually made of high tensile strength cord, fabric, or wire that is wrapped, wound, or braided around the tube. The cover is the outermost layer, so it may encounter oils, acids, water, dust, abrasion, and other potentially damaging influences depending, of course, on the application. An appropriate cover material must be selected, usually a rubber compound. Couplings, even though they are a hose attachment, are as vital as any other component and should be considered part of the hose. Couplings are usually made of carbon steel or malleable iron; however, bronze or stainless steel might be used if corrosive chemicals are involved and brass or aluminum might be used for flammable fluids. A coupling is usually in two parts: an insert that fits into the hose bore and contains the threaded male, female, or other type of connection, and the ferrule or collar that fits over the hose and secures the coupling in place. There are, however, some one-part couplings that fit securely into the hose without a ferrule. These are usually limited to low pressure applications and are secured to the hose by clamps or metal bands. Some fittings can also be permanently "built-in" as the hose is made. Couplings can be classified as reusable or permanent. The reusables can be removed when the old hose expires and used again on a new hose. The permanent types are crimped or swaged on at the factory or in the field (using special equipment) and must be discarded with the hose. Although couplings are most commonly thought of as having threaded fittings, there is another type called "quick connect." These either have a crow-foot or jaw-type design that permits a fast, "snap" connection. This can

Jan 6, 1982

By I. S. Parrish

This article offers one of the infrequent looks at Chinese mining. It includes a brief review by Parrish of a tungsten symposium held there and his comments on and impressions of the mines he visited. In early Oct. 1981, a Symposium on the Geology of Tungsten was held in the Peoples Republic of China. There were approximately 100 participants. Half of them were Chinese. The remainder included representatives of the United Nations, geologists from other nations in Southeast Asia, and 10 invited specialists from other countries. The invited guests included K.F.G. Hosking of the Camborne School of Mines, United Kingdom; C.S. Hutchinson of the University of Malaysia; K. Mattson of LKAB Int. AB, Sweden; T. Kwak of Latrobe University, Australia; K. Sato and S. Ishihara of the Geological Survey of Japan; M. Clarke of the Department of Mineral Resources, Indonesia; P. Bateman of the US Geological Survey; and the author. R. Horsnail of Amax was also invited but was unable to attend because of delayed visa clearance. The meeting was noteworthy because the Chinese were presenting more than half the papers. In addition, following the formal session, everyone was taken to the famed Jiangxi tungsten district and toured four mines there. Organization and Background The idea for a symposium on tungsten geology was brought up in late 1979 during a visit to China by the Economic and Social Commission for Asia and the Pacific (ESCAP) and, in particular, by members of the Regional Mineral Resources Development Centre (RMRDC) of the United Nations. Discussions continued and in the spring of 1981 invitations were sent to selected geologists throughout the world. China's Ministry of Geology handled arrangements, scheduling, and logistics. Travel to China and all correspondence before the symposium were coordinated by the Bandung, Indonesia Bureau of RMRDC. All costs in China were met by the Peoples Republic of China. Airfares and "per diem" enroute for participants were paid by respective governments, sponsors, or individuals. On Oct. 10, visiting participants entered China from Hong Kong. The author and a few others traveled by train to Guangzhou (Canton). Most of the group flew in the next day. The entire group was then taken to Nanchang, traveling by sleeper train and arriving on Oct. 11. The symposium group stayed at the Kiangsi Hotel, where the meetings were held. Meetings Oct. 11 was a day of orientation and rest. The group was taken to an art museum and treated to a Chinese opera movie. The formal meetings began on Monday, Oct. 12. Simultaneous translations aided presentations, though more than half the Chinese speakers delivered their talks in English. The acoustics and sound system were excellent, and the Chinese provided 35-mm and overhead projectors. There was no screen, however, and the yellow, painted wall that was used detracted from projection clarity. In general, the Chinese papers were detailed, thoughtful, and professional. Some, naturally, were stronger than others. Taking them as a unit, one derives the following sequence to the Chinese approach to tungsten exploration: (1) Geologic investigations with mapping at a scale of 1:200,000 accompanied by only minor geochemical or geophysical work. (2) Geophysical investigation with regional gravity and magnetic surveys directed toward identifying deep, tectonic systems and seeking granites in thick, crustal environments. (3) Geochemical sampling in-

Jan 6, 1982

By P. Albert Carpenter, Wallace B. Howe, Michael N. Greeley, E. C. Bingler, Gilbert R. Eakins, Christy Bell, John Callahan, Gary B. Glass, T. J. Crabs

Although gold's market price dropped considerably from 1980's all time high, exploration for the precious metal remained a particularly bright spot last year, especially in the western US. For example, in Nevada-the nation's largest gold producer-further exploratory drilling at Louisiana Land & Explorations Co.'s deposit at Round Mountain and Newmont Mining Corp.'s find near Carlin resulted in sharp boosts in estimated reserves at both sites. Louisiana Land said its deposit is well on the way to being one of the largest gold reserves in the US. Based on further drilling, Newmont said its Gold Quarry property near Carlin could now produce 4.7-6.2 t/a (150,000-200,000 oz/ year). Reserves at Newmont's two properties near Carlin and a third property in southeast California are reportedly at least 218 t (7 million oz), up from the previously announced 128 t (4.1 million oz). Gold exploration activities were brisk in many other states, including a noticeable effort to explore and reopen dormant properties. Although the return on investments didn't appear as favorable last year as they did in 1980, the gold price was apparently sufficient to spur healthy exploration activity. Outside precious metals, market conditions, and subsequent exploration activity, appeared much more bleak. In the molybdenum market, for example, prices continued to slide, and Amax Inc. tightened its exploration budget. (Amax supplies 60% of the domestic market and 45% of the world demand for molybdenum.) The company spent 16% less on exploration during the first six months in 1981, compared to the same period in 1980. Copper and many other base metal producers appeared in similar straits throughout the year. Uranium exploration activities continued to suffer last year also due to depressed market conditions. Among others, Gulf Minerals Resources and Amoco Minerals Co. suspended uranium exploration activities in the West. Despite current unfavorable conditions, some companies continue uranium searches, confident that market conditions will rebound. On a brighter note, interest in exploring for some industrial and strategic minerals appeared on the upswing last year. Minerals used for oil and gas drilling, such as barite and special sands, were especially noteworthy. In geophysical activity, significant developments were achieved for electromagnetic techniques in both frequency-domain and time-domain systems. Geophysical logging activity declined due to decreased uranium exploration, and computer hardware continued to impact the way mining geophysical data are being acquired. Many presentations and papers were given last year to help exploration geochemists develop new techniques to locate concealed ore bodies. Among techniques described were statistical and computer modeling for enhancing anomalies over blind deposits.

Jan 5, 1982

By R. Addison, P. V. Avotins, E. Martinez, L. A. Haas, D. K. Mortenson, E. EI-Shall, R. D. Kulkarni, M. D. Flavel, S. Chong

Mineral processing activities in general reflected the economic ills of 1981 and early 1982, but in some areas the depressed state of the industry resulted in increased activity. As were all aspects of the minerals industry, processing plant operations were severely affected by the recession-prone economy, by sagging prices for primary metal products-copper, molybdenum, nickel, iron, manganese, and especially uranium-and numerous shutdowns and layoffs. Copper production by major producers in Arizona and Utah was severely curtailed; Amax, the major US molybdenum, producer did considerable belt-tightening; and the uranium industry was in a state of disaster. Even the precious metal superstars-gold and silver-were affected, with a steady decline throughout the year in world market prices. Perhaps hardest hit have been newly developed properties, particularly in the uranium industry, and old-line properties where historical development impacts today. No longer can such properties afford the luxuries, for example, of a long haul distance between mine and plant or continued use of antiquated facilities. Surprisingly enough, the very state of the economy has caused increased activity in some sectors of the mineral processing industry. In mill design, although large projects have been tabled, smaller projects have gone on, with innovations in design, often for cost-saving reasons, that will affect future designing approaches. Economic restrictions are impacting on mill flowsheets as researchers look for improvements and better, less expensive techniques. Other unit processes-hydrometallurgy, pyrometallurgy, concentration, materials handling-are impacted by the need for a better, less costly product. Although at the end of the first quarter of 1982, no major environmental legislation had been enacted, rumors persist that there will be a loosening of some of the stricter standards, both in the requirements themselves and in the time allowance for implementation. The year had seen some relaxation in how current legislation and standards are administered. For example, in OSHA (Occupational Safety and Health Administration) operations, there has been a shift toward voluntary checking of industry compliance with work rules, rather than emphasis on agency inspections. However, the industry continues to view environmental factors as having major influence on future operations and efforts to design for environmental safety are becoming almost as important as the processes themselves. Throughout the industry there has been a further focussing on project management, recognizing the necessity for tight control of budgets and schedules-and the systems used to effect them. Materials Handling Review prepared by A. T. Yu, ORBA Corp. The frenzy of coal export activities has continued into 1981. Many modern export terminals are now in construction while others have either been held up or cancelled. Economics and environmental permits have been some of the major problems. Currently under construction are terminals in Newport News, VA; Charleston, SC; and Baltimore, MD. Expansion of existing facilities at Mobile, AL, and New Orleans, LA, is also well under way. A wide variety of systems and components are being used. They include traveling shiploaders, tunnel and bucket wheel reclaim¬ers, stackers and high line trippers, and bottom and side dump-type car dumpers. Manufacturers from Japan and Europe have been participating along with domestic suppliers. As an attempt to avoid environmental problems, a system of loading and unloading coarse coal

Jan 5, 1982

By T. J. Crebs

The latest estimates compiled by the Society of Exploration Geophysicists again indicate a moderate increase in mining geophysical activity in 1980 over the 1979 level. While North American activity remained at above the 1979 level, a considerable increase in mining geophysics was reported in South America, Australia, and the Far East. The total worldwide expenditures for mining geophysics were reported to be $53.7 million in 1980, compared to $44.4 million in 1979, and $31.6 million in 1978. During 1980, approximately 2% of all dollars spent on geophysics were attributed to mining geophysical activities; this percentage has remained relatively constant in recent years. Airborne surveys accounted for 51% of the total worldwide mining geophysical expenditure, 43% was spent for land surveys, and 6% for borehole surveys. Within the US, the breakdown of expenditures for land surveys was 60% for elec¬trical methods, 23% for gravity and magnetic methods, and 17% for seismic techniques. Electrical techniques remain the primary exploration tool for US mining geophysicists. Electrical Methods With inductive or electromagnetic (EM) techniques, significant developments were achieved in both frequency-domain and time-domain systems. Work continued on increasing the signal level on most time-domain (TEM) methods, to increase the exploration depth. The Crone group increased the power of its Pulse ElectroMagnetic system (PEM) to a 20-amp transmitter-loop capability. The GEOEX group is modifying the SIROTEM II system to obtain larger transmitter amperage from a portable motor generator. Geonics developed a new digital recording system (data logger) for its EM-37 system. This development should increase the productivity of EM-37 crews. A new ground, frequency-domain EM system was developed by the Scintrex group. This novel Genie system does not require a wire link between the receiver and transmitter. Because an amplitude-ratio is measured, the Genie data are reported to be relatively insensitive to coil orientation and distance errors. This new technique does not need extensive line-cutting or accurate station-chaining and would appear to be a good reconnaissance instrument. Scintrex also began marketing the new IPR-11 induced polarization spectral receiver. This receiver is microprocessor controlled, and can output to a cassette tape and record 10 windows of secondary voltage decay simultaneously from up to six receiver dipoles. The Phoenix group's new 100 kW induced polarization/resistivity (IP/R) transmitter began tests using their IPV-3 multifrequency, multichannel receiver. While this unit was primarily developed for "oilfield" IP exploration research, it has obvious application to "deep" mineral exploration. The Phoenix group also developed a new remote-reference, real-time magneto-telluric (MT) device in 1981. This five-component MT sys¬tem has a frequency range from 0.0005-384 Hz. Helicopter-borne electromagnetic (HEM) developments also continued in 1981. The mining in¬dustry increased its use of the new Geonics EM-33-3 multifrequency, multicoil instrument. In 1981, the Dighem group developed software for estimating magnetite as a mapping parameter from its HEM system. Dighem's work is said to complement airborne magnetic intensity surveys, since the HEM estimate is independent of remanent magnetism and magnetic latitude effects. Gravity and Magnetic Methods Probably one of the most innovative techniques in geophysics in 1981 was the use of airborne gravity surveys for both mining and petroleum exploration. The Carson group is using a modified, shipborne LaCoste-Romberg platform in helicopters. Data accuracies to 0.5 milligal have been achieved by flying gridded surveys. Although this airborne method is expensive-up to $186/ km ($300/line-mile)-the geophysical community has been excited by initial results. On the ground, the portable proton-precession magnetometers are becoming sophisticated. Both GeoMetrics and EDA recently introduced field magnetometers having data storage and processing capabilities. This development should greatly increase the productivity of ground-magnetic surveys. Seismic Methods Development of high-resolution seismic techniques continued in 1981. These techniques have primarily been directed toward coal studies for fault detection. OYO Instruments introduced their McSEIS-1500 seismic data acquisition system in 1981. This device contains a 24-channel recording capability, with digital output to 256-kbyte floppy disks. The high-speed data transfer using the disk media is considered a desirable feature. Borehole Methods The general decrease in uranium exploration, where borehole logging is extensively used, probbly led to the overall decline of geophysical logging activity in the minerals industry. However, a number of new sondes and logging systems were introduced in 1981: • Mount Sopris recently introduced their Series III logging system. This microprocessor-controlled unit records up to four channels of data on nine-track or cassette magnetic tape. The logging package is relatively light-weight, so helicopter transport to mountainous or roadless exploration sites is possible. (Both the Edcon and Woodware-Clyde consulting groups offer "slinging" capabilities for their Mount Sopris units.) Mount Sopris is continuing work on their 500-mm-diam (2¬in-diam) spectral gamma-ray sonde. This tool is expected to be available soon. • Owl Technical "slim-downed" its successful digital deviation probe to 380-mm (1.5-in) outside diameter. This new sonde will also measure inclinations up to 80° from the vertical, as compared with its older instrument that could measure inclinations to 30°. • A magnetic susceptibility sonde was introduced in the US by the OYO Instruments group. This Kappalog sonde contains two aircored coils for measurements slightly affected by thermal changes within the borehole. The increased activity in massive-sulfide exploration and the need to "look" deeper no

Jan 5, 1982

By Donald E. Ralston, William B. Seward, Washington Bernard, William J. Halvorsen, Richard P. Killmeyer, Kelvin K. Wu, Peter Phillips, John N. Murphy, W. H. Mullins

Despite a recession that's crippling many US industries, and a UMW strike that wasn't supposed to happen, 1981 was a fairly good year for the coal industry. The big news was record-high exports. Queues of colliers waited for weeks at Hampton Roads, VA, and Baltimore, MD, to load coal destined for Europe and the Far East. Private industry and city governments began scrambling for a share of the export boom, and port developments were planned in nearly every coastal state. Coal exports jumped from about 82 Mt (90 million st) in 1980 to a record 83 Mt (92 million st) in 1981, according to the National Coal Association. NCA projects exports to remain at this level 1982. The following statistics illustrate industry performance in other areas: • Demand by domestic utilities and overseas customers was so strong that total US consumption reached 760 Mt (838 million st) in 1981. DOE predicts another record year in 1982, with consumption forecast at 804 Mt (886 million st). • 1981 production of 730 Mt (805 million st) was just slightly below the record high of 748 Mt (824 million st) in 1980, "a remarkable figure considering that UMW production was shut off for 72 days during 1981," says NCA President Carl Bagge. Production in 1982 should set a new record, 800 Mt (880 million st). • Eastern coal production fell 7.4%, while western production-largely unaffected by the UMW strike-rose almost 10%. NCA says eastern output will rise almost 12% to 538 Mt (593 million st) in 1982, and western production will increase by 6.6% to 266 Mt (293 million st). • Production per manhour is improving. After the strike, weekly production hit the 16 Mt (18 million st) mark and has approached the 18 Mt (20 million st) per week level. •Coal's share of the US electric generation market increased from 51% in 1980 to 53% in 1981. Electric utilities are coal's biggest customer, and their financial situation is precarious. Inflation has thwarted necessary expansion plans, while shifting environmental regulations have played havoc with construction costs. Utilities increased power sales by only 2.5% in 1981; NCA predicts that utility coal use will increase 4% in 1982. The Association's long-range forecast indicates that growth in electricity demand in the immediate future will be much lower than in the 1960s and 70s. Administration Impact Industry optimism following the election of Ronald Reagan and a Republican-dominated Senate didn't survive the year. One bright spot was the appointment of James Watt as Interior Secretary, and his promises to review surface mining regulations and resume leasing. The administration, however, has declined to support federal eminent domain for slurry pipelines and expects port users to foot most of the bill for expansions and improvements. It has also drastically reduced government financial support for synthetic fuels. The outlook for synfuels-one of three major markets for coal-has

Jan 5, 1982

By Stanley J. LeFond

After two disappointing years where most industrial minerals posted decreasing production, 1981 saw an increase in production over 1980, or at least in status quo. Several commodities did, however, post significant gains. For example, bromine posted a 14% increase; fluorspar production dropped 21% in 1980, but gained 24% in 1981; and sulfur production increased. However, perlite was off 13% and manufactured sodium sulfate off 18% in 1981, while natural sodium sulfate production remained almost even with 1980. In fact, many industrial minerals production either remained constant, increased, or decreased only slightly over 1980. Increasing energy costs had their impact on industrial minerals in 1981. Hopefully, the recent downward trend in energy costs, at least gasoline, will financially help some of the more marginal plants. The 1979 shortage of rail cars that did not carry through 1980 also did not carry through in 1981. Rail rates increased 12.8% over-all last year, while average freight rates for industrial minerals increased 15.5%, according to Neil Johnson, consultant. Also, the trucking industry posted a 5-6% decrease in rates due to deregulation. All in all, we in the industrial minerals section seem to be holding our own at least. Stanley J. Lefond Contributing Editor

Jan 5, 1982

By Donald E. Ralston, V. Rajaram, Michael N. Greeley, John W. Peters, Terry J. Laverty, F. S. Kendorski, Peter G. Chamberlain, J. Brent Hiskey, William C. Larson

Preliminary figures from the US Mine Safety and Health Administration show 801 underground metal mines and 490 surface metal mines, at the end of 1981, up from 663 and 383, respectively, in 1980. Preliminary MASH figures also show 207 underground nonmetal mines and 1070 surface nonmetal mines at the end of 1981, compared with 167 and 1092, respectively, last year. In addition, preliminary MASH figures show there were 14,676 mineral extraction operations on the surface and 3845 underground at the end of 1981, versus 14,951 and 3675, respectively, for last year. The number of mines, then, in three of four categories increased significantly, while having a lower net total of just 2% in the other category. And the number of underground extraction operations increased nearly 5% for the year, while surface operations were down less than 2%. But despite operations totals that mostly held their own or showed significant increases, it was a tough year for the nation's mining industry. The nonferrous segment of the industry had a bad year and 1982 may be no better, according to Business Week (Jan. 11, 1982), which adds that a turnaround is impossible unless the general economy recovers. Even then, with diminishing markets and overcapacity plaguing its products, the mining industry's condition "will be far from robust," the magazine says. The basic problem is that nonferrous metals-aluminum, copper, lead, molybdenum, nickel, and zinc-are tied to the most troubled sectors of the US economy. As recently as 1979, for example, more than 40% of all aluminum shipments went to the construction and transportation industries. Last year, these markets were down to 35% of aluminum shipments. And molybdenum sales to steel producers dropped by nearly 15% last year. Moreover, nonferrous products ended 1981 at disastrously low prices. Molybdenum oxide sold at $8.77/kg ($3.98/lb), half its $17.63/kg ($8/lb) price earlier in 1981 and aluminum was listed at $1.08/kg ($0.49/lb), compared with $1.54/kg ($0.70/lb) a year earlier. The Comex price of copper was $1.54/ kg ($0.70/lb), down from $3.11/kg ($1.41/lb) in early 1980, in real terms the worst copper price in 30 years. Lower prices led operators to cut their output and increase layoffs, shut down mines, and defer capital spending projects. In December, Duval Corp., a Pennzoil Co. subsidiary, shut all four of its US copper mines until March. Aluminum Co. of America had laid off 7.3% of its work force, shut nine of its 38 smelting lines, and entered 1982 operating at only 68% of capacity. Inco Ltd., the Free World's largest nickel producer, lost money in 1981, an estimated $11 million, for the first time since 1932. And, like Falconbridge Nickel Mines and other major nickel producers, had cut back on nickel production and was operating at only 63% of capacity (Forbes, Feb. 15, 1982). Amax, the country's largest molybdenum producer, had cut production by 20%. And Hanna Mining Co. sold lead for $5.07/kg ($2.30/lb), about $1.54/kg ($0.70/lb) below what it cost to produce. Another problem is that copper companies in the next few years must come to terms with problems of aging smelters. Some companies are simply closing them. In 1980, Anaconda closed its 75-year-old Butte, MT, smelter and is shipping concentrates to Japan, rather than modifying the smelter to meet environmental requirements. And oth Phelps Dodge Corp. and Asarco Inc. have antiquated smelters on which they will have to make decisions. The most troubled metal in 1982, Business Week said, will be molybdenum, with no real recovery in sight until the mid-1980s. High molybdenum prices in the late 1970s, caused in part by shortages, triggered overexpansion that will take years for the US market to soak up. On a more upbeat note, 1981 mergers might help stabilize the industry by providing funds for mining companies. Standard Oil Co. (Ohio) said it plans to spend $7 billion on Kennecott during the next 10 years for modernization and expansion. And Atlantic Richfield Co. said it will spend $500 million on Anaconda Copper Co. during the next five years. Another positive note was sounded by T. H. Adams of the United Banks of Colorado Inc. He said he expects the mining industry to experience moderate growth in 1982, led by "interest rate sensitive" demand from energy, electronics, and defense markets. And mining will be helped by "weak, but improved" construction and auto markets. The mining industry will be operating in an economy stronger than 1981, but still relatively sluggish by postwar standards, Adams predicted. Iron Ore Estimated US iron ore production in 1981 was 75.2 Mt (74 million long tons), up 6% from 70.7 Mt (69.6 million long tons) in 1980, though down from the 87.1 Mt (85.7 million long tons) produced in 1979. The mine value of usable iron produced from domestic mines was estimated at $3 billion. US iron ore was produced by 28 companies operating 35 mines, 26 concentration plants, and 16 pelletizing plants. The mines included 34 open pits and one underground mine. Byproduct ore recovered from copper- and titanium-mining operations accounted for less than 1% of total iron ore production. Fifteen mines operated by nine companies accounted for 94% of total

Jan 5, 1982

Because of the different types of reagents used for the flotation of sulfide and nonsulfide minerals, it is convenient to consider these two groups of ores separately. The metal sulfides and native metals are substantially all floatable with xanthate and similar collectors.

Jan 4, 1982

By Thomas F. Stinson

Energy-producing states see severance taxes as attractive sources of increased revenues for otherwise tight budgets. Consumers in energy-poor states, however, protest that current rates are excessive and have moved to obtain a reduction. The US Supreme Court heard two cases questioning such taxes during its 1981 term, and Congress, in each of its last two sessions, has seriously considered measures placing a ceiling on severance tax rates. Although discussions usually focus on coal severance taxes levied by Montana and Wyoming, ramifications of changes in national policy are much larger, potentially affecting mineral taxes in all states. Severance taxes yield substantial revenues in some states, as illustrated in the accompanying table. In fiscal 1980, Texas collected more than $1.5 billion from such taxes, while Louisiana, Alaska, and Oklahoma collected $525 million, $507 million, and $436 million, respectively. Oil and natural gas production were the major items taxed. While the table shows only the 10 states with the largest severance tax collections, a total of 17 states had severance tax receipts exceeding $10 million in 1980. The enormous increases in severance tax revenue between 1970 and 1980 can be seen from the table by comparing columns A and B. For the 10 states shown, revenues increased from $650 million to $3.8 billion during that period, due to a combination of higher prices, increased production, and new or increased taxes. In most states, increases in prices and production were more evident than higher tax rates. Although the revenue increase is impressive, it understates the extent of changes occurring during the past decade. Since tax collections are shown for fiscal 1980, the full impact of the decontrol of domestic oil prices is not evident. Also, taxes on natural gas reflect controlled prices. When full de-control of natural gas occurs, significantly higher revenues can be expected in gas-producing states, even if tax rates, production, and world prices remain constant. These increases in severance tax revenues, coupled with further increases expected to accompany natural gas decontrol, have produced fears that a substantial transfer of income is taking place from residents of energy-poor states to those living in energy-rich areas. Others worry that increased severance tax revenues will be used to substitute for a substantial portion of state taxes that would have otherwise been collected from firms and individuals. The resulting improvements in tax climate, it is thought, may encourage firms and workers to migrate to energy-producing states. While these issues are often portrayed as pitting energy have-nots against the haves, such is not entirely the case. Much of the original impetus for limits on coal taxes came from Texas residents, the state collecting the most severance tax revenue. One way of gaining perspective on these concerns is by examining severance taxes per capita and as a percent of state tax collections (see columns C and D in the table). When this is done, Alaska, where 1980 taxes on oil and gas production totaled more than $1300 per capita (and 35% of all state tax collections), stands out as a special case. There, the state was able to eliminate some individual taxes, place revenues in a permanent trust fund, and consider offering a rebate of some previous income

Jan 4, 1982

By T. Naarttijärvi

The Fabian ore body near Malmberget, Sweden, has an ore reserve of 5 Mt of predominately low grade iron ore, containing 40-55% Fe. Mining began in 1971 with a new method called slot block caving. About 2 Mt were mined, but poor fragmentation resulted in too much secondary blasting. This decreased mucking efficiency to such an extent that the method was abandoned after only 40% of the ore volume had been mined. At this stage a large stope (180 x 30 x 100 m) had been excavated. Although the exposed area was quite large, no caving action occurred in the hanging wall or in the ceiling. LKAB decided in 1977 to introduce sublevel stoping using 105-mm-diam holes. This was the first time large diameter holes were used underground in Sweden. The method had been evaluated in collaboration with the University of Luleå (LuH), the Swedish Detonic Research Foundation (SveDeFo), and the Swedish Mining Research Foundation.

Jan 3, 1982