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By Sabina Brady

Nearly a decade and a half after the US and China established formal diplomatic relations, and two decades after the two countries signed the Shanghai Communique and established commercial ties, the world, and perhaps China itself, has discovered that a wealth of natural mineral and energy resources lie beneath China's soil and directly off its coast. The country's coal reserves and oil and gas potential are well known. Its ferrous and nonferrous metal reserves are respectable and in a number of instances pre-eminent. According to 1981 Minerals Yearbook estimates - more often than not below those now being claimed by China - the country's aluminous metal reserves are about 907 Mt (1 billion st); iron ore reserves are 40 Gt (44 billion st); and copper reserves are about 46 Mt (54.4 million st) of contained metal. In addition, the country has about 10.7 Gt (11.8 billion st) of phosphate reserves, the fourth largest in the world, and 3 Gt (3.3 billion st) of pyrite. China's national Sixth Five Year Plan promulgated in late 1982 ended a stringent three-year retrenchment or readjustment period in which a number of major development projects involving foreign participation initiated in the late 1970s were shelved. The new Five Year Plan is a signal both within and outside of China that things are now moving again, and that major industrial and service sectors are receiving the kind of funding and flexibility they need for expansion, construction and modernization. The new plan's strategy for growth is measured and much less grandiose and frenetic than it was five years ago when China flung open its doors to foreign companies and invited participation in large-scale development projects. Now, the country's reticence to spend foreign exchange to purchase key equipment, technology, and services -a reaction to these projects and the spending they entailed - is clearly on the wane. In China's effort to quadruple its GNP by the year 2000, there is a new willingness to use some of its substantial foreign reserves. In fact, it is projected that 1983 will witness a $1.9 billion deficit, with a $2-3 billion deficit in 1984 and 1985. The following article discusses implications the Sixth Five-Year Plan has for nonferrous metal development in China. It is the first in a series of three articles on Chinese mineral resource development to be published in Mining Engineering over the next few months. The second article will identify specific nonferrous projects underway, while the third in the series will focus on trade and development opportunities for phosphate and potash producers in China. China's Ambitious Plans In the last few months, the exploitation of China's nonferrous resources and development of its industrial processing capabilities have begun to receive increasing attention on both provincial and central levels. Unlike the earlier modernization drive of 1978 when China's ferrous sector - best typified in the Baoshan iron and steel project - got the lion's share of the Ministry of Metallurgical Industry's (MMI) energy and resources, it now appears that in some respects the nonferrous and industrial sectors are finally moving out from beneath the dominating shadow of ferrous and getting their own day in the sun. Separation of Nonferrous from Ferrous One clear demonstration of this is the establishment in April 1983 of the China Nonferrous Metals Industry Corporation (CNFMIC). The corporation is composed of 819 enterprises with over a million workers, and also includes 12 nonferrous metal construction companies, eight design institutes, and three prospecting companies. Of ministerial rank, CNFMIC is responsible for the development of both the country's nonferrous resources and its processing facilities. Although closely tied to the parent ministry from which it sprang (i.e. MMI), CNFMIC, at least theoretically, is separate and independent from it. One strong indication that this independence is, or soon will become a reality, can be seen from the fact that the new corporation is not headed by the former MMI officials, not even those who made up the ministry's now defunct nonferrous bureau. Instead, its president Qiu Chunfu is formerly of the State Economic Commission and the China International Trust and Investment Corp. Its general manager Fei Ziwen, an engineer in his early 50s, is from the Jiangxi Province Copper Corp. The new nonferrous corporation appears to be powerful

Jan 7, 1983

By Lynton B. Manssen

Introduction Net Present Value (NPV) techniques are becoming widely used in industry as a standard analytical tool in making capital budgeting decisions. However, NPV techniques are often misused in "common practice." A comparison was made between the use of NPV techniques in common practice and an Adjusted Net Present Value (ANPV) approach to capital budgeting in the financial analysis of a mining project. The comparison was made by applying both methods to a hypothetical copper project. The intent of the analysis is to provide an example for practitioners to follow when financially analyzing mining (or other) projects. To maintain the thrust of the analysis, the project has been evaluated as a stand alone, total project. No consideration has been made of the division of cash flows accruing to various owners over the life of the project. This omission will not affect the comparative nature of the analysis. This discussion assumes that the reader is familiar with present value as a concept and as a tool in capital budgeting. Finance theory has embraced NPV analysis as the correct way to evaluate capital budgeting alternatives. Many articles have been written expounding the virtues of NPV over other capital budgeting methods, such as Internal Rate of Return (IRR), Payback, Accounting Rate of Return, and others. It is not the purpose of this article to review all of the literature in this area; suffice it to say that in academic circles NPV concepts are accepted as the norm. A survey by Schall, Sundem, and Geijsbeck (1978) indicates that major US companies are finally following in academia's footsteps. Fifty-six percent of the companies responding to the survey use NPV techniques in their capital budgeting process. Further, some 86% of the companies surveyed use discounted cash flow methods (NPV or IRR) for capital budgeting decisions. This compares with a survey by Klammer (1972) that showed 57% of companies using both techniques, a considerable increase in seven years. With the increasing use of NPV techniques in industry, there are certain uses in common practice that can give misleading results. Five common errors in NPV analysis of large projects are: • No distinction is made between real and nominal cashflows. • The discount rate(s) used in the NPV analysis is not formally adjusted for risk. • There is no distinction of possible differences in the riskiness of different project cash flows; i.e., revenue vs. depreciation. • There is no recognition of the cash benefits to the project from interest tax shields (interest payments on the project's debt that are tax deductible). • There is no clear recognition of subsidies to the project from concessionary debt financing. No Distinction Between Real and Nominal Cash Flows Often, expected cash flows for a project are stated as a mixture of real (in constant dollars) and nominal (in current dollars) cash flows. For example, expected revenue cash flows may be stated in real terms and depreciation may be stated in nominal terms. If cash flows are added together to give an after tax cash flow, and this single cash stream is discounted, care must be taken to ensure that cash flows are consistently stated. All cash flows should either be stated in nominal terms or in real terms. In addition, the discount rate used must be stated in the same terms as the cash flows being discounted. Real cash flows must be discounted using real discount rates and nominal cash flows using nominal discount rates. Discount Rate Not Adjusted Numerous methods for obtaining discount rates are used in common practice. Schall and others

Jan 6, 1983

By R. W. Carn, D. Vincent

During the next 15 years, US coal production is expected to double, with the increased production evenly divided between the East and the West. Along with greater production, coal export markets should increase dramatically from East, West, and Gulf Coast ports. The annual overseas export capacity of US coal-loading terminals is expected to rise from 147.1 Mt (162.1 million st) in 1981 to a minimum of 278.1 Mt (306.6 million st) in 1985, according to the US Maritime Administration. Increased coal production and use will lead to more development of import and export terminals, a vital link in the coal transportation chain. With continually escalating capital costs and the competitive markets that the terminals will serve, a well designed and efficient terminal is necessary. This article begins a two-part series that presents concepts presently used in coal export terminal design. Part I looks at site selection factors and equipment needs, while Part II will examine environmental considerations in building a terminal as well as typical capital and operating costs. The world is nearing the end of the oil era. In a few years oil will not be available to sustain the growth rate and increasing standard of living we have known in our lifetime. The big question is what energy era are we moving into? With the decline of readily available oil reserves and rapidly increasing prices, many countries are trying to switch to alternate energy forms. While intensive efforts to find new oil reserves continue, alternate energy sources such as natural gas, coal, synthetic fuels, nuclear, hydroelectric, solar, and wind power are being developed. Recent indications are that coal is expected to bridge the energy gap over the next 25-30 years until the technology and economics of the alternate energy forms reach satisfactory levels. Use of coal for energy is receiving strong attention due to its long-term availability (200-300 years minimum), relative ease of development, and its low cost per unit of power produced. By the year 2000, it is expected that 25% of world energy supply will be met by direct coal combustion and possibly another 5-10% by synthetic fuel from coal. Coal's expanding share in the world energy market, along with an increase in coking coal requirements, will result in a large increase in the world's seaborne coal trade. Recent statistics and projections for the future are shown in Table 1. This phenomenal development rate includes increases in both coking and thermal coal requirements. Because of the rapid increase of seaborne coal trade during the last 10 years and the even greater projected increase of trade to 2000, various sectors of the coal industry are faced with enormous technical challenges and huge investments in equipment, land, transportation systems, and port facilities. Very large bulk terminals are under development throughout the world. Latest surveys indicate that there are about 30 new coal export and import terminals under consideration and at least 30 existing terminals have expansion programs planned or underway. With the high cost of borrowed capital and rapid inflation rates there is great emphasis on new planning and design techniques to minimize capital and operating costs of coal transportation systems. Terminals A total coal supply system can be considered to consist of one or more mines; a train, barge, truck, or other haulage system; an export terminal; a fleet of bulk carriers; a receiving terminal; and possibly, local inland distribution networks that include barges and railways. Terminals, though only a small link in the total transportation system, play a key role in overall system efficiency. At ports or inland distribution centers, terminals act as transportation links bringing trains, ships, barges, or trucks together for cargo transfer and temporary storage. A well-designed terminal can provide maximum independence between two modes of transportation and optimum freedom for intermodal interference. A terminal acts as a buffer between the two transportation modes by providing sufficient storage capacity so a ship need not wait for its cargo on, for example, a train-by-train basis, but can load immediately from the ready stock. Similarly, a train need not wait for a ship to unload its contents but can dump immediately into storage. A terminal also can be used to properly mix various types of coal to satisfy a buyer's requirements. Consider the relative value of various production and transport segments for a typical steam coal

Jan 6, 1983

By Andrew N. Peterson

US mine operators frequently fail to investigate more cost effective and productive bulk material handling systems because surface mines seem to lend themselves to truck ore haulage. In this country, as a result, use of conveyors to move heavy loads from mine to process facilities has been minimized, if not actually neglected. In contrast, there are more than 50 conveyorized surface mines in successful operation around the world. These mine operators have learned that properly applied conveyorized systems can offer major savings in capital and operating costs, which contribute to improved profits when combined with other proven mining technologies. Growing acceptance and application of conveyorized bulk material handling in surface mines also points up how unique each mine is and how careful planning contributes to maximum mine effectiveness. Because of these differences, mining executives and technical and operating staffs need to develop an understanding of three factors in applying conveyorized bulk material handling in surface mines: • Why each mine will benefit from the type of automation permitted by conveyorized operation, •What kind of equipment is available, and • What applications most effectively demonstrate the first two factors in action - hauling either ore or waste. The conveyorized systems considered in this presentation have production rates from 0.5-2.7 kt/h (500-3,000 stph). Worldwide, these systems have been operating since the early 1960s. Advantages of Conveyors Why do you want conveyorized bulk material handling? First, it almost always provides lower operating and maintenance costs. Second, it frequently requires lower initial capital costs and almost always requires lower capital costs over the life of the surface mine. Third, it provides comparable operating availability, and finally, it frequently gives comparable operating flexibility - depending on the mine plan. Cost avoidance can be accomplished with modern production methods. These, in turn, permit increased productivity and reduced operating costs such as those for energy, maintenance, and manpower. It has been demonstrated in European surface mines and elsewhere, that conveyor systems frequently require lower initial costs than does truck haulage. Almost always such operations require lower capital costs over the mine life. Those costs include the continual addition of haulage trucks to both accommodate the increasingly difficult haulage routes and fulfill replacement requirements when trucks wear out. Conveyor systems handling ore in numerous large crushing and port facilities, which have operated since the early 1950s, have clearly demonstrated a useful conveyor life of more than 25 years. In contrast, off-highway trucks have life spans of six to eight years. The following examples illustrate comparative capital costs to purchase conveyor systems and comparable truck haulage units. Example 1 The ore haulage route from point A to point B is level and 610m (2,000 ft) long. The material weighs 1.8 t/m3 (110 lbs per cu ft) and must be transported at a rate of 1.8 kt/h (2,000 stph). The installed capital costs to provide a properly designed conveyor that will transport the described material from point A to B is about $450,000. The capital cost to purchase three 77-t (85-st) off-highway trucks and one spare truck - which would provide equivalent capacity - would be about $1.2 million. The truck cost estimate is based on a 6 min. or 771 kt/h (850 stph) truck cycle time. Truck efficiency is estimated at 0.8. Each 77-t (85-st) truck would have an actual haulage rate of 617 kt/h (680 stph). Therefore, three trucks would be necessary to transport the designated tonnage of 1.8 kt/h (2,000 stph). A movable crushing plant would be located at point A for the conveyors and a permanent crushing plant at point B for the truck haulage system. Capital costs for these primary crushing plants were not included in the calculations for either system because the capital costs are frequently comparable. Example 2 The transport route from point A to point B is 610 m (2,000 ft) horizontally and 122 m (400 ft) vertically - on a 20% grade (Fig. 1). The material weighs 1.8 t/m3 (110 lbs per cu ft) and must be moved at a rate of 1.8 kt/h (2,000 stph).

Jan 6, 1983

Although out of the ordinary, MINING ENGINEERING is pleased to present a few photographs that typify Western US mining activity during WWII. The photographs, taken by R.G. Zellers at Colorado mining operations between 1942 and 1946, were primarily intended for equipment manufacturers. The pictures capture scenes of hardworking miners during a time when output was essential to fuel a wartime effort. In addition to providing a rare opportunity to step back 40 years and view the equipment and activity common at the time, Zellers' skill with photo composition and his ability to obtain clarity in dimly lit underground operations gives viewers an acute awareness of the dampness and dirt of the mines, and a sense for the miners' limited working space.

Jan 6, 1983

By S. P. Chong, Peter V. Avotins

The iron and steel industry continues to operate at depressed production levels due to the low level of demand for steel and foundry products. Crude steel production in the Western world dropped by 13.7% from 459.3 Gt (506 billion st) in 1981 to 396.4 Gt (437 billion st). The reduction was particularly severe in North America where the industry suffered a loss of 37.3% from 123.6 to 77.5 Gt (136 to 85 billion st). This reduced level of production severely affected iron ore and agglomerates output. Substantial curtailment was made in both sintering and pelletizing plants to meet reduced demand. The pressure on these plant operators shifted from quantity to quality. With energy cost becoming an ever increasing part of production costs, conservation was a major area of emphasis. Iron Making Sinter has continued to be the favored burden for blast furnaces overseas. As hot metal production declined and excess sintering capacity developed, many of the overseas operators that have been using pellets found it advantageous on hot metal production cost to increase the ratio of sinter at the expense of pellets. This was the case despite the depressed price level of pellets in the world market. In North America where pellets have been the predominant burden material-mainly because it is necessary to pelletize the fine grain iron ores available domestically-there was also increased interest in sinter usage. Bethlehem Steel Corporation's 13.6-m (44.5-ft) furnace at Sparrows Point experimented with a burden with more than 70% of sinter during the second half of the year and indicated some favorable results as compared to its previous 50% super flux sinter and 50% acid pellet burden. The blast furnace operators continued to press for improved burden quality. In addition to the emphasis on the importance of burden chemistry and quality, uniformity, much emphasis was placed on improving reducibilitiy and high temperature metallurgical qualities. These burden properties were recognized to hold further promise in reducing fuels rates. Sintering With reduced consumption caused by the cutback in hot metal production, many sinter plants sat idle while others operated at greatly reduced rates. The deemphasis on production in many plants allowed them to experiment with various means to reduce operating costs. The most notable action was the introduction of low cost South American pellet feed fines into the sinter ore mix. These feed fines, which are finer than 150 µm (100 mesh) ore, were previously thought to be too fine for sintering. However, when the full production rate is not required the use of up to 40% in the ore mix was reported to be successful with the aid of burnt lime and adequate premixing and granulation of the sinter mix before sintering. The emphasis on quality and tighter cost control also has resulted in a further breakthrough in sintering technology. It was recognized that good feed preparation-including selection of compatible ores, good blending, good pseudo-particle formation, additive size control increased bed depth, and closed control of the sintering bed heat pattern-could allow the production of high quality sinters with much lower heat input and FeO level. Bed depth of more than 600 mm (23.6 in.) was practiced in a number of operations. Total heat input of better than 1.3 GJ/t (290,300 kcal per st) has been achieved. Kawasaki Steel's Chiba Works has also achieved a 5.3% SiO2 in the sinter with good quality. The low heat input approach allowed production

Jan 5, 1983

By Clement K. Chase, J. A. Eisele, Paul D. Chamberlain, Terry Laverty, Lee Rice, Larry Sevenker, Albert G. Law, Daryl Tweeton, John Peters

"Name your poison," wrote Forbes, Jan. 3, 1983, in an article describing the plight of much of the mineral industry as it entered the new year. "To ask which (mining) segment is better these days is almost like asking which of several stones would make a better life preserver." "The scene has seldom seemed darker or apparently less promising," said the Mining Journal in June 1982. And the Northern Miner described the year as the third in a "3-year drought which has completely dried up (company) coffers." Thus, 1982 became the worst year for much of the mining industry since the Great Depression. Low prices, commodity surpluses, output reductions, layoffs, temporary and permanent closures, and financial losses made headlines as the general recession continued to hurl blows at an industry facing strong foreign competition, increased government regulations, and plummeting market demand. At fault were tight US monetary policies and the resulting high interest rates that, while forcing inflation to slow, also threw the economic wheels of the country into reverse gear. Automobile production, housing starts, consumer durable sales, and capital spending all fell dramatically. US industrial production fell about 8.5% in 1982, with the GNP dropping by 1.7%. Production Value Not a single mineral escaped this recession. According to the US Bureau of Mines, US nonfuel production value dropped for all but four out of 21 metals and 14 out of 44 nonmetals. Production quantities increased for only gold, lead, and zirconium among metals and for only six nonmetals. Total nonfuel mineral production value dropped a whopping 21% from 1981 levels, the largest decline since 1938 and the first since 1971. Production value was estimated at $20 billion. Metal commodities showed heavier losses than nonmetals-37% vs. 12%-because of their link to depressed automobile and construction industries. Prices From peaks in early 1980, prices of precious and base metals, ferrous and nonferrous metals, and virtually every mineral dropped to 30-month lows in June 1982. Gold dropped to $9.64/g ($300/oz) compared to a high of $27/g ($850/ oz). Silver was quoted below 164/g ($5/oz) versus a $1.61/g ($50/oz) high. Copper was offered at a five-year low of $1.22/kg (55.5¢/lb) compared with a high of $3.30/kg ($1.50/lb). Lead went for 53¢/kg (24¢/lb) versus $1.21 (554). Nickel begged for buyers at $4.19/kg ($1.90/lb) compared to a high price of $7.72/kg ($3.50/lb). Molybdenum was available at or below $8.82/kg ($4/lb), down from a high of $44/kg ($20/lb). Cobalt went for $11/kg ($5/lb) versus $55/kg ($25/lb). Adjusted for inflation, increased currency costs, and currency devaluation, many of these prices are the lowest reached in decades. Financial Profits & Losses Low prices severely impacted companies' earnings, turning profits into sometimes disastrous or fatal losses. Robert Norton, director of the US Bureau of Mines, noting there has been a recession in the mineral industry for years, said, "Profit rates as related to invested capital have been considerably lower (for mining) than those of other industries. Mineral industry profits have been subject to greater cyclical swings and debt equity ratios have been significantly greater than

Jan 5, 1983

By S. K. Kawatra

Three International Symposiums-the 14th International Minerals Processing Congress, the 17th APCOM, and the SME-AIME Fall Meeting special symposium on Design and Installation of Com¬minution Circuits-held in 1982 contained a number of papers relating to the fundamentals of processing coals and metallic minerals. In addition, many papers were published elsewhere in the literature. Some of the more significant papers are discussed below. Flavel reviewed key performance parameters, such as energy-size relationships for crushing processes and presented a fundamental basis for optimizing crusher productivity and possibly for development of improved crushers. Pascoe et al. reviewed the use of such control schemes. Magerowski and Karra presented a paper on a computer program developed to and in the design of crushing circuits. The problems associated with the scale-up to very large ball mills were discussed by Arbiter and Harris, and by Kavetsky and Whiten. Both groups concluded that limits on mill productivity arise due to problems associated with particle breakage and transport through mills. Austin et al., and Herbst and Rajamini reviewed the state of the art for the use of grinding circuit simulators for design and control. The effects of mill operating and design parameters on selection and breakage were discussed in detail. The philosophy of control and instrumentation for grinding circuits was extensively discussed by Kawatra and Seitz. Their paper presented for the first time an analytical basis for the inferential particle sizing technique and provided a fundamental basis for the implementation of this technique. The effect of reagent addition variation's on the performance of coal flotation circuits was reported by Kawatra and Waters, and on sulfide flotation circuits by Klimpel et al. Both groups analyzed circuit behavior from a kinetic point of view and reached similar conclusions on the effects of collectors and frothers. The computer simulation of an iron ore flotation circuit also was reported by Kawatra et al. In this work particular attention was paid to the phenomena of froth overloading. Klimpel et al., Kawatra and Waters, and Niemi et al. discussed the philosophy of control by flotation circuits from a fundamental kinetic point of view. An extension of the use of high intensity magnetic separators to the beneficiation of specular hematite was discussed by Thayer and Linkson.

Jan 5, 1983

The administration came on as a strong supporter of the mining industry in April of 1982 when President Reagan delivered his long-awaited minerals policy statement. He promised to reduce America's minerals vulnerability, and called for spending billions on meeting stockpile goals for strategic minerals, opening up federal lands for mineral exploration, elimination of barriers to deep sea mining, and regulatory relief. He defended the favorable tax incentives in the Economic Recovery Act as a stimulus to private research and development that would ensure the availability of materials essential to the nation's economy and national defense. But the administration just didn't seem to get anywhere. Congress, environmentalists, and even foreign governments fought White House-proposed legislation on all fronts, delivering the ultimate coup in forcing Environmental Protection Agency Administrator Anne Burford's resignation and the subsequent EPA staff house cleaning in early 1983. Anti-Reaganites scored victory after victory against Reagan's efforts to stimulate the minerals industry. Congress was stalemated on so many mining-related issues that not much was done either for or against the industry. And the US was not to get its way on the issue of sea mining either. Most of Reagan's mineral policy objectives failed to be met. Three months after the National Materials and Minerals Program Plan was presented and the Cabinet Council on Natural Resources and the Environment was made its coordinator, the head of the Cabinet Council James Watt blamed lack of progress in reviving the mining industry and creating a better strategic stockpile on the weak economy and the House of Representatives, which repeatedly thwarted efforts to open wilderness lands to mining. Congress The 97th Congress spent much of its time saying no in 1982-to the Reagan administration's deep cuts in energy and environment programs, to major changes in clean air and water laws, to oil and gas leasing in wilderness, and to killing the Department of Energy. Most of 1982 (and 1981) was spent in heated budget disputes. Some things that did not happen: • The administration and industry failed to get changes in controls of hazardous air pollutants and sulfur dioxide emissions that are implicated in the phenomenon known as acid rain. Industry had wanted to relax requirements for new industries building in clean air regions where the air act demands prevention of significant deterioration (PSD) of air quality, and to relax requirements tightening up the regulation of emissions of hazardous air pollutants. The air battle is expected to continue on five major fronts-acid rain, hazardous air pollutants, PSD, automobile pollution, and nonattainment. • Regulatory reform legislation to overhaul the way government carries out the law died a slow death last year. Business groups and the administration said federal agencies should be required to consider cost-effective measures of reaching regulatory objectives of protecting public health, safety, and the environment. Opponents, including environmentalists, feared such action would delay, weaken, or scuttle important regulations. • Congress turned thumbs down several times on proposals for oil and gas leasing in wilderness but could not agree on any new wilderness recommendations (see The Wilderness Battle). • Congress refused to open the door to the Reagan administration's plan to raise up to $4 billion a year from sales of federal lands. The administration identified surplus and excess federal lands, mostly obsolete buildings or isolated tracts of land, that could be sold by the General Services Administration (GSA) to help out the federal budget deficit. Congress took no action. Some things that did happen: • Congress extended the Defense Production Act (DPA) for six months through March 1983 without changing the 32-year-old law. That came after it failed to resolve sharp differences over proposals for critical minerals programs. Differences concerned both the amount of funds and the scope of programs that would be authorized under the DPA's Title III. Some proponents pressed for $5 billion in funding for loan guarantees or purchase commitments to spur domestic production of minerals such as cobalt. Other members of Congress wanted smaller amounts of funding, and the Reagan administration, until about November, had opposed any use of federal funds for strategic mineral programs. These measures were certain to come up again before the DPA extension expired in March. • House supporters of the Critical Materials Act of 1982 were unable to come up with the twothirds majority needed to pass the bill, so it died on the House floor in December. The bill proposed that a council be established with responsibility for coordinating federal materials research and development. The administration opposed the council creation contending that the Cabinet Council

Jan 5, 1983

By Donald E. Ralston, A. T. Yu, Richard P. Killmeyer, Peter Phillips, R. W. Vander Laan, John N. Murphy, John R. Messineo, John Peters

Overview Coal production in the first half of 1982 remained near the high levels begun in mid-1981. Production then fell sharply during the latter part of the year due to recession-weakened demand. Even so, 1982 coal production was estimated at 756 Mt (833.4 million st), a record high that exceeded 1980's previous production record of 752.7 Mt (829.7 million st). Though 1982 coal production was substantially below industry expectations, the attained production represented a modest achievement in view of the recession's severity. In 1982, the gross national product declined 1.8%, its worst performance in 36 years. The recession, along with mild weather, improved energy efficiency, and conservation efforts caused the nation's energy use to drop 4.1%. With the iron and steel, construction, and auto industries experiencing production declines, industrial energy use fell 10.8%. The extent to which the nation's economic slump affected coal markets in 1982 varied: • total domestic coal use declined 3.4%; • exports remained strong for most of the year; • electric utility coal use declined for the first time in 25 years; • coal use at coke plants declined by one-third; and • coal use in other industrial sectors stayed surprisingly near the 1981 level. Coal Use Domestic coal use totaled 641.8 Mt (707.5 million st) in 1982,22 .9 Mt (25.2 million st) below the 1981 level. Nearly all the decline occurred at coke plants where use dropped to 37.1 Mt (40.9 million st) in 1982 from 55.3 Mt (61 million st) in 1981. The decline in all other industrial and electric utility coal markets was only 5.3 Mt (5.8 million st). Residential and commercial coal use increased 635 kt (700,000 st) to 7.3 Mt (8.1 million st) from 6.7 Mt (7.4 million st). Power generation decreased 2.3% in 1982, the first year since 1945 that output failed to increase. The decline was due to a drop in industrial demand. Electricity sales to residential, commercial, and other nonindustrial users increased slightly. But coal's competitive position stayed strong. Power generation from oil and natural gas fell 28.9% and 11.7%, respectively. Power generation from coal declined only 0.9%. Among the primary energy sources, coal fueled 53.2% of US electric power generated in 1982, compared with 52.4% in 1981. In 1982, US steel production declined to 66.1 Mt (72.9 million st), the lowest level in 50 years and down from 109.6 Mt (120.8 million st) in 1981. The reduced steel demand forced 13 coke plants to shut down. Coal Exports Coal exports in 1982 totaled 96.4 Mt (106.3 million st), 5.7 Mt (6.3 million st) less than in 1981. Despite the worldwide recession and above normal coal stockpiles in many countries, exports were higher than many expected. This showed the relatively strong US position in international coal trade. The US continued to export near-record coal tonnages despite increasingly competitive influences. These included an improvement in Australia's labor difficulties, the return of Polish coal to Western European markets, and lower oil prices. In 1982, US port facilities were improved and expanded, and more efficient methods for scheduling foreign vessels were implemented. As a result, high volume coal shipments to US ports were routinely loaded and dispatched unhampered by bottlenecks that plagued East Coast ports in 1981. Appalachian coalfield production declined 1.4% from 1981 output and 3.9% from 1980 output. The interior region of the US showed an increase of 7.8% in production. This was primarily because of a

Jan 5, 1983

The value of US industrial mineral output last year was $20 billion, a 12% decline from 1981. A glance at the accompanying table and a review of the comments made by several contributors reveals how poorly many industrial minerals fared during 1982. Bromine and peat posted a 6% increase in production while recovered sulfur showed only a 3% gain over 1981. Pumice, salt, and dimension stone managed to stay more or less even with 1981 production. However, most industrial minerals posted losses for the year from 3% for vermiculite, sodium carbonate, and gypsum to 49% for ilmenite. Naturally, the depressed economy is to blame for decreased production and consumption. Low steel and auto production, lower housing starts, and many other factors impacted the industrial mineral industries. Hopefully the worst is over. Interest rates are down, energy costs are decreasing, the automobile and housing industries show signs of picking up. Perhaps the 1983 annual review will be less gloomy. Many thanks to these industrial minerals technical committee members for their contribution to this year's annual review: G. S. Austin, E. S. Montgomery, H. P. Ehrlinger III, D. B. Jorgensen, R. L. Parratt, J. F. Burst, W. Mallory, N. C. Trivedi, and N. K. Olson.

Jan 5, 1983

The only good news in the exploration sector in 1982-a year plagued by low metal prices and weak demand-was precious metals. Gold in particular remained in the forefront, as it has for at least the past three years. The reason for this is partially due to gold's seeming resilience to conventional supply side factors-such as new production-that normally influence many other metals. Also, with projected production costs of about $6.40-$9.65/g ($200¬$300/oz), modest deposits with average grades can offer an early return on capital investment and good profit potential. Keeping escalating capital costs for new mining ventures within reason has shifted gold exploration efforts in recent years. Many mining companies are seeking relatively low grade, modest tonnage, near-surface gold mineralization. This, of course, leads to lower development costs using open-pit mining methods. Recent refinements in the carbon-in-pulp recovery process also has enhanced the economics of such deposits. Slumping economic conditions certainly played a key role in shaping exploration activity last year. Nearly every major mineral-producing state recorded exploration slowdowns. In Alaska, for example, development expenditures approached the level of exploration spending for the first time in the state's history. This not only reflects major companies' decisions to move toward production but also the economic slowdown. The worldwide recession stopped Nevada's exploration and mining boom "dead in its tracks," said John Schilling, state geologist. The year was one of layoffs and closings for the state's mines and exploration offices, he reported. Similar trends were noted in most other states, especially in the West and Southwest. In the Pacific Northwest, however, exploration appeared to continue at a relatively good pace considering the metals market. In the mining geophysical community, recent advances in telecommunications and microprocessor technology are continuing to provide a positive impact. Many geophysicists have begun using satellite digital communication links to access computer systems from remote sites where using a microcomputer would be difficult. There were also major contributions made in exploration geochemistry last year. Highlights include progress in formulating mineral deposit models, geochemical exploration in glaciated and arid environments, and publication of many informative books. The following state-by-state summary and articles on geophysics and geochemistry provides a detailed view of exploration events throughout the US in 1982.

Jan 5, 1983

By Michael Chender

The rapid and continuing expansion of computer and communication capability is giving birth to profound changes in the business environment. Some commentators hold that the basis of the world economy has already shifted from industry to information. Regardless of the overall implications of these changes, it is now clear that every company potentially has both access to and a need for much more information for decision making than was the case a few years ago. The importance of information to the mining industry has been underlined by the rash of unexpected economic and political developments and by the accompanying market volatility that have marked the past decade. It should be abundantly clear to even the smallest mine operator that the price for his output can be instantly affected by unexpected developments halfway across the world. Nevertheless, many mining companies still are much less sophisticated about information than they might be. For many, the historical feeling that information is an unnecessary luxury for a production-oriented business still seems to linger. On the other hand, the overwhelming volume of source material, uncertainty as to its accuracy, and the problems of finding relevant material when needed, presents stumbling blocks to viable systems of information management. Introduction When a company needs certain information, it has two basic alternatives. It can either research and develop the information in-house or pay for someone else to do it. Few mining companies have the in-house capability to assemble information needed for careful planning. On the other hand, companies often engage consultants to find information that is in fact easily accessible. All too often companies give up on procuring needed information because of the frustration of not being able to find it, and of not wanting to pay seemingly exorbitant sums for someone else to produce it. The result is poor planning. This article addresses two aspects of the information problem-finding the right sources and then accessing the particular information desired, especially as it pertains to nonferrous metal exploration and development issues. In the first section, major English-language sources that report on exploration and development (excluding primary sources of geological information, such as technical journals) are discussed.* In the second section, some available techniques for efficiently accessing this information are presented, focusing on the new MINESEARCH database system. Part One: The Information Following the News The most obvious way to follow exploration and mining developments from a distance is through regular mining media. Many active mining districts have local newspapers, usually published in the district's major towns, that give extensive coverage to miningrelated activities. For instance, to follow activities in Idaho's Coeur d'Alene silver district, one might subscribe to the Kellogg Wardner News and/or the Wallace Miner. Similarly, one might get the Sacramento Bee for news of current mining developments in north-central California. The American Metal Market, published in New York, is the daily newspaper that covers the metals industry as a whole, both in the US and abroad. Its coverage is weighted towards the refining, manufacturing, and consumption end of the business, but it frequently carries stories on mining activity, company dealings, and market outlooks. For news of major mining companies, the daily Wall Street Journal provides occasional coverage of North American companies, while the Financial Times of London serves as probably the best single source for worldwide company information. International Coverage There are three metals industry weeklies that have broad international coverage and readership. These are Metal Week, Metal Bulletin, and Mining Journal. Each has its strengths. Metals Week, a McGraw-Hill newsletter, focuses primarily on news of the metals markets, concentrating on those developments that are seen to most directly affect the price of nonferrous metals. Metals Week is strongest on North American news. Metal Bulletin, published in London, is particularly strong on

Jan 4, 1983

By Robert W. Wheeler, Richard G. Ames, Robert B. Reger

Introduction The use of diesel engines as an alternate power source in US underground coal mines has been a controversial step towards more efficent mining practices. Three areas of potential benefit are foreseen. First, diesel-powered mining equipment is believed to be more efficient, resulting in less occupational risk for any given amount of production. Second, diesels are believed to pose fewer intrinsic hazards, especially those related to fires and ignition of combustibles. Finally, several other health and safety advantages are foreseen for diesel units. Each of these issues will be discussed separately. Diesel Efficiency Proponents of the use of underground diesel-powered mining equipment point to increased production efficiency due to greater maneuverability, speed, power, and payload (Bradbury, 1973; Jorgensen, 1982; Ogden, 1978; Wenberg, 1979; Olsen, 1980). Units most suitable for diesel power include LHD vehicles, shuttle cars, personnel carriers, and maintenance vehicles. Estimates of increased efficiency vary from 60%-300% and more (Wenberg, 1979). Increased diesel mining efficiency is usually viewed as making it practical to mine lower grade seams. Diesel units can also operate over a wider range of floor pitches and distances than electrically-powered units, thus allowing mining of seams with special mining problems (Olsen, 1980). Diesel application is not a universal substitute for electrical power. For example, continuous miners are unlikely diesel candidates. Reduced Intrinsic Hazards Proponents of diesel use have pointed to the increased safety potential due to a reduction in electrocutions, arcs, burns, underground cable fires, and methane ignition (Ogden, 1978). Diesel units are frequently employed in maintenance activities for lifting and moving, and for coal cleanup. Thus the case is made that diesel use, by making powered operations more conveniently available, reduces the incidence of lower back injuries and related causes for days lost due to disability (Olsen, 1980). Several other issues relating to diesel safety have also been suggested. Diesel units can continue operation even during power outages allowing, for example, personnel evacuation. The maneuverability of diesel units make them particularly attractive in difficult physical conditions, such as long haulage from the face to the belt and in areas where water is deep. The case for diesel use focuses heavily on the potential for a "per worker" reduction in accidents, or a reduction in the severity of accidents. Since accidents are a major part of the health impact of mining, a reduction in accidents and resulting injuries would make a major contribution to the health of coal miners. Opposition to Diesel Use Opposition to the use of underground diesel mining equipment in the US seems to have started with the United Mine Workers of America. Some opposition to US diesel use has been based on a widely publicized 1976 letter from NIOSH to Mine Enforcement and Safety Administration administrator Robert Barrett (NIOSH, 1982). In essence, this letter warned that while insufficient evidence existed as to diesel effects on underground coal miners, NIOSH had concerns based on prior knowledge of separate diesel exhaust constituents and the potential for interaction between these constituents and coal mine dust. Current opposition to underground diesel use has focused on respiratory health effects related to diesel emissions, particularly nitrogen dioxide (NO,), carbon monoxide (CO), and particulate content (Barrett, 1982). Through

Jan 4, 1983

By Calvert D. Iles

Open-pit mines in the US and throughout the world are typically characterized by increasing operating costs and decreasing ore grades. Thus, companies must continue to improve their use of human and technological resources to remain competitive in the marketplace. Duval Corp. has historically been very sensitive to mining costs, in part because of relatively low grade copper-molybdenum ore bodies. These concerns have resulted in three haulage system generations at the 218 kt/d (240,000 stpd) Sierrita-Esperanza open-pit mine south of Tucson, AZ. Each generation has exceeded the performance of the one replaced. The latest system of portable crushers and conveyors reduces hauling costs by combining both hardware and technique. Savings are achieved not only bysubstituting conveyors for haul trucks, but also by permitting the crusher-convey or system to closely follow mining as the pit deepens and/or mining areas change location. The Duval system is capable of easy and inexpensive relocation in varying site configurations in relatively short time periods. Its implementation in active mining areas results in minimum disruption to both the mine operation and mine design. This haulage concept allows the mining engineer maximum freedom to design an open pit for profit rather than for equipment. Maximum savings with a portable system are achieved by minimizing truck haulage costs. At Sierrita, for example, the yearly estimated operating cost savings for each thousand feet of +10% truck ramp replaced by conveyors is about $1 million per portable crusher. A savings of $30 million could be achieved fora three-portable system overa 10 year period simply by reducing the average truck Iiftto the crusher by 30 m (100 ft), There is also the added capital expense of buying trucks to cover the additional 30 m (100 ft) of lift. Relocation costs are an important consideration in a portable system. Direct costs can become a significant operating expense if frequent relocations are necessary to take full advantage of potential haulage cost savings. A site preparation cost of $375,000, for example, would add an additional operating cost of 2.8¢/t(2.5¢/st) for a system handling 13.6 Mt/a (15 million stpy), assuming one move a year, In addition to the direct cost of site preparation, such as installation of retaining walls, apron feeder slots, and equipment pads, there is the cost of site renovation after abandonment. Indirect relocation costs, while less tangible and more dependent on specific mine design and scheduling, can be of significance. A slowdown in the mining rate or a less efficient mining plan can result from a site not being immediately available for mining after abandonment. Conversely, mining in narrow areas can be adversely affected if two or three month lead times are required for site preparation.

Jan 4, 1983

By David M. Parkes, Mike Fisher

In 1947, coal production in Western Canada was 10 Mt (11 million st) which predominantly came from 120 underground mines. By 1968 production was down to 1 Mt (1.1 million st). Production in 1981 was back up to 29 Mt (32 million st), but only 1.5 Mt (1.7 million st) of the total was from underground mines. In fact, because of competition from open-pit mines, only two underground mines were operating in 1981-the McIntyre and B.C. Coal mines. While several other underground mines are being planned, this article will deal with only the two in production. Geology The geology in Western Canada is frequently complicated; hence only more regular deposits are mined. Coal is generally thick, often steeply pitched and usually soft or well cleated. The 5000-km (3,100-mile) coal belt that runs from the Yukon to Mexico is well developed in Western Canada. It is divided into two distinct regions-the Rocky Mountain Lower Cretaceous coals and the mostly uniform level Upper Cretaceous coals of the plains area to the east. Isolated pockets of coal occur at Vancouver Island and Hat Creek. Hat Creek's massive 300-m (984-ft) thick geologically recent lignite deposit is 250 km (155 miles) inland. Geography The infrastructure of Western Canada is shown in Fig. 1 along with the locations of the two mines. Both rely on exports of premium low volatile metallurgical coal mostly to the Pacific Rim. The rail distance from both mines to port is 1100 km (684 miles)-accounting for a significant portion of the sales cost of the coal. Mining Methods Two main mining methods are used-room and pillar and hydraulic. Longwall has been attempted and is being considered again. In the past, a simple hand method used gravity to help mine most of the coal on steep pitches. Levels were driven in the seam, rising slightly to assist in draining. On the advance, mining would start at the upper level, usually from adits driven in the side of the mountain. Rooms or angles were driven up 100 m (328 ft) at a suitable angle for the coal to flow down. On retreating out of the level, the pillars would be taken, starting from the highest point, using batteries to stop coal or rock flushing down the room. Batteries consisted of three to six stout wooden posts set at an angle to resist material flow. Coal loading was directly from chutes at the bottom of raises into 1- to 2-t mine cars hauled by diesel or battery locomotives. Often output was restricted by the supply of empty cars. Mechanization began in the 1960s but was difficult in these conditions. Mines such as Canmore and Coleman continued operation into the 1970s but closed because steep seams, high methane emissions, and faulting made mining difficult. McIntyre Mines The McIntyre mines are located 360 km (224 miles) west of Edmonton, Alberta, in the foothills of the

Jan 4, 1983

By Earl M. Frizzell, Ronald W. Utley

Introduction For the past several years the Bureau of Mines has undertaken research to develop alternative mine material haulage systems that will improve mine productivity, reduce haulage costs, increase mineral availability, and conserve energy. One basic concept being pursued is a means for crushing primary blasted rock to a size that can be reliably and economically moved on conveyors. During 1980, mine requirements for this equipment and the capability of existing technology to satisfy these requirements were assessed. The study continued into 1981 on the basis that satisfactory equipment for this purpose needed to be developed. The objective of the 1981 program was to perform an engineering design of such a system. A mine survey and equipment development study was conducted in cooperation with the open-pit mining industry by GATX through its subsidiaries, Fuller Co. (a crusher manufacturer) and GARD Inc. (GATX's research and development center), under contract to the USBM. Results of a mine survey in the copper, iron, and molybdenum industries indicated that a universal crusher system could be developed even though details might vary from mine to mine. The crushing characteristics, including tonnages desired, were similar in all surveyed mines. Most mines had similar views about the desirability and frequency of crusher movement. The perceived need for in-nit crushing varied between copper and iron mining. The copper mines felt a greater sense of urgency for introduction of such a system, probably because typically greater vertical haulage is found in copper mines than in the iron mines. All mine personnel surveyed were interested in portable crushers and almost universally preferred gyratory-type primary crushers. They preferred large crushers, citing inherent reliability and durability, and the machine's relative freedom from clogging. Large size minimizes the number of crushers and conveyors needed. Analysis of desired crusher system characteristics (Table 1) fixed the crusher size at 1.5 x 2.3 m (60 x 89 in.). The 1.5-m (60-in.) feed-opening dimension could accept the largest material normally fed to the crusher, and the 2.3-m (894n.) head diameter could fulfill the 3.63 kt/h (4,000 stph) capacity requirement. Selected System Description The comments and analyses discussed in the contract report led to the design and refinement of a movable crusher system. This system represents the consensus of more than 100 mine workers and almost 50 construction and engineering company personnel. It is supported by more than 50 years of experience in crusher manufacturing. Although many alternatives are available for any given system, and selections are likely to be dictated by varying site conditions, the selected system is believed to be appropriate for most projected requirements. Final design would be dictated by mine operators during evaluation for approved projects. Detail design of the feed and discharge systems were not included in the study because they are mine specific. The basic system (Fig. 1) consists of a 1.5 x 2.3-m (60 x 89-in.) gyratory crusher on a structural steel frame. The frame is used as an operating platform for the crusher and as a carriage to move the crusher. The control tower includes a crusher lubrication room, a hydraulic equipment room, a switch gear room, a room for the motor control center, and a control room for operating the crusher and maintaining the equipment. The auxiliary system consists of a hydraulic rock hammer and pedestal crane with 74-t (80-st) and 14-t (15-st) hooks. Figure 1 also shows stairs, railings, and a work platform. Feed and discharge arrangements are shown on Fig. 2. The system shown is for mildclimate applications. Additional enclosure and heating would be needed for extremely cold weather conditions. Crusher A 1.5 x 2.3-m (60 x 89-in.) gyra¬tory crusher was selected for this application. This size can handle the typical throughput of 3-3.63 kt/h (3,500-4,000 stph) desired by the mines and the 1.3-m (50-in.) material to be crushed without difficulty. The crusher is the heaviest

Jan 4, 1983

By Kerry M. Masson

Perhaps the hottest item on the agendas of most state legislators this year is the state budget. The main question: Where will all the dollars come from to finance health care programs, state jobs, unemployment compensation programs, and on and on? This is especially so since people are out of work, business bankruptcies are up, sales are down, and incoming revenues from some sources have decreased or dried up. A sure bet is that state taxes will be increased in some form or another. The mining industry could face increased income taxes, property taxes, severance taxes, or even a host of new taxes (if the state does not already have them) like a gross receipts tax, investment tax, or tax on revenues made outside state borders. That's bad news for an already depressed industry, even though increased taxes may be the least of the industry's worries in the current economic climate. While reopening existing mines and developing most new mineral projects depends primarily on higher commodity prices, new taxes still could pose long term concerns for mine project development. Just how mineral tax law impacts a project is not easy to figure. It involves a complex set of calculations based on interpretations of numerous federal, state, and local tax laws that change almost annually. At best, projections of tax effects for the life of a mine are educated guesses. At the same time, projections are necessary to evaluate the economic feasibility of a mineral project. At a recent Technology Transfer Seminar, the US Bureau of Mines introduced a computer software program designed to evaluate the feasibility of a mineral project and to determine the tax effects on the project's discounted cash flow rate of return (DCFROR). The program, called MINSIM, began in 1967 as a 200-statement FORTRAN II program for evaluating a hypothetical large-scale open-pit gold mine. This single-commodity oriented program employed discrete simulation techniques and a continuous DCFROR was used to measure the effect of changes in revenues and costs. Over the past 15 years, MINSIM has developed into a program 70 to 100 times larger than the original. Basically, it will analyze costs and parameters specific to an identified deposit, then determine the DCFROR. Or by using a specified DCFROR, it will determine the primary commodity price required to attain that specified rate of return. MINSIM, which is explained in detail in this article, is available from the Division of Minerals Availability, USBM free of charge. Written in FORTRAN IV, it comes on punch cards or magnetic tape and is compatible with most major computer systems. The MINSIM Program The main objective of any freeenterprise mining venture is to make a profit. To determine profitability of a given project, alternate methods of operating and financing must be evaluated. That is the purpose of MINSIM. While there are a number of methods of evaluating the economic profitability of a mining project, MINSIM uses the Discounted Cash Flow Rate of Return (DCFROR) method as its major criterion because DCFROR considers the time value of money and gives the truest measure of profitability. One disadvantage is that the calculations are deposit oriented. In other words, MINSIM analyzes only those costs and parameters specific to the deposit. It cannot be used to evaluate the overall corporate picture. The program is designed to simultaneously handle five different commodities and a leach operation for any type of mining project. For example, analysis of a coal project would include only one commodity-coal at the mine mouth. Analysis of a copper operation might include numerous commodities-from the raw material to the refined product. Input MINSIM considers capital investment-recoverable exploration, acquisition, and development costs; depreciable capital investments such as mine plant and equipment, mill plant and equipment, and infrastructure costs; all general and commodity specific operating costs; and the cost of alternate financing methods. The program has the capacity to incorporate different types of depletion allowances, numerous commodity-dependent severance taxes, variations of property taxes, and many methods for calculating state or provincial taxes. There are even many different ways to calculate federal and national taxes. The capacity to handle tax variations is generated from an internal subroutine in the program called the "open file." The user can reconstruct, customize, or evaluate any kind of tax desired. Outputs Given this kind of capacity for numerous input parameters, MINSIM is capable of the follow¬ing major outputs:

Jan 3, 1983

By Maurice Grieves

GC. Waterman Mr. Grieves' paper on "Shaft Sinking Today--A Boring Business Tomorrow" in the Dec. 1981 issue of MINING ENGINEERING is an excellent description of recent improvements in speed and costs of shaft sinking. However, shaft boring techniques are not a recent development. In 1935-36, the Idaho Maryland Co. (gold), Grass Valley, CA, bored the vertical 1.5-m-diam Idaho No. 2 ventilation and supply shaft to a depth of 346 m. The equipment was designed and perfected by Branner Newsome and was, I believe, described in "Transactions." Pickands Mather later bored a 1.8-m-diam shaft to a depth of about 305 m using Newsome's design. The Idaho No. 2 shaft cut through hard gabbro, diabase dikes, soft serpentine, very incompetent ankeritized serpentine and a strong fault zone. The completed shaft did not require timber support; the fault zone was cemented. Equipment consisted of a rotating 1.5-m or 3-m core barrel with a slotted bottom which cut a 76-mm kerf. The cutting agent was chilled steel shot introduced into the slot as needed. The driving mechanism and core barrel were lowered into the shaft, the former secured to the wall and the inshaft "engineer" operated the motors which controlled core barrel rpm and advance. After an advance of 1.5-3 m the equipment was lifted out of the shaft, a half(?) stick of powder cut off the drilled core, and it was hoisted to the surface with a cable attached to an eye bolt at the tope of the core. A "shift" consisted of three men: hoistman, equipment operator (down the shaft), and a surface laborer. Advance was variable as equipment and techniques were perfected. Near the end of the job advance was, as I remember, 1.5-3 m per shift. Costs were, as I recall, about $115/m. Up to 4 m cores were lifted out in one piece and swung to the dump by a stiff leg derrick. The Newsome equipment was relatively inexpensive to build and operate and his method should be (more than?) competetive with the methods described by Grieves. W.E. Hawes The author, in mentioning the South African developments of the cactus grab, ignores the parallel development of the Cryderman mucker in this hemisphere. Perhaps a slightly longer history of blind hold drilling would have been in order. Blind shaft boring got a major boost at the Nevada Test Site, as part of the nuclear weapons development, when it was essential to be able to quickly assess depth for weapons testing. One of the early civilian attempts to utilize this technology occurred when Kerr McGee drilled the shaft at the Section 19 Mine at Ambrosia Lake, NM. This twin masted drill rig belonged to a subsidiary of Kerr McGee, not Shaft Drillers. This was a difficult hole, due to bentonitic shales that decomposed. Later advances in drilling fluids eliminated this problem. The Conoco project referred to is not entirely correct, and needs minor amplification: The depth of the development (not pilot) shaft drilled was 684 m, at a diameter of 3.05 m, with a 2.16 m ID hydratatic casing being installed to a depth of 669 m. Conoco Inc., not Challenger, executed the drilling, however Conoco did use Challenger Drilling Company's Rig 14-S. Rig 14-S is unique in that it is specifically designed for shaft drilling, rather than being an oil field rig used for this service. All work was planned and directed by Conoco personnel. Deviation of the aforementioned shaft from vertical was 31 cm. Two smaller shafts (pilot shafts) were drilled with the same rig. These smaller ones were drilled 1.8 m in diameter, to depth of 665 m and cased with .91-m-diam casing, to depth of 650 m to be used as pilot holes for 5.5 m diameter shafts. The total elapsed time for all drilling, casing, cementing, and rig moves was 50 weeks. The constraints mentioned of vertical accuracy, torque, wall collapse, rig set up time, lining time etc., pumping out, etc., may not be as serious as the author implies. First, vertical accuracy: The record achieved by Conoco indicates that with reasonable care, good accuracy can be obtained, primarily by having a fair amount of weight in tension, rather than on the drill bit. Second, the amount of torque that can be applied to the drill stem has been greatly increased by the introduction of larger diameter drill stems, such as the new Hughes rig uses. Third, risk of collapse of shaft walls is minimal with the proper mud program. Basically, the walls are supported by the weight of the mud and it is not removed until some type of casing is installed and grouted in. Here in the real challenge of blind drilling shafts to devise a more economical method of lining bored shafts than using steel casing. The remaining issues were minor at Conoco, provided adequate planning and scheduling takes place. An excellent paper, "Shaft Drilling--Crownpoint Project" by Hassell H. Hunter, presented at the Fifth Uranium Symposium in Albuquerque in Sept. 1981 contains details of this project. A combination of blind boring, with enlargement by either mechanical means (boring machine, or tunneling type shield) or slabbing down, with muck removal through a larger bored shaft would seem to be the future trend in shaft development. The economics, especially for wet conditions, favor this concept over conventional sinking, as has been demonstrated at Kerr McGee --Churchrock, UNC--Churchrock and Conoco at Crownpoint.

Jan 3, 1983

By J. W. Carson

Introduction Many bulk solids such as coal, limestone, and fine moist ores often flow unpredictably out of bins, hoppers, and boreholes. Vast amounts of time and money are spent-with or without success-on flow promoting devices. In addition, many solids segregate in storage, feed erratically, flood, arch, rathole, and stick to bin walls reducing the live capacity. This article discusses bulk solids flow properties and provides guidelines for designing storage bins, hoppers, and feeders to provide reliable flow. Bulk Solids A bulk solid is a granular material consisting of discrete solid particles-submicron to several inches in size-that is handled in bulk form (for example, in a bin or silo). The gas filling the voids is generally insufficient to fluidize the material and the liquid (usually water) content is assumed to be less than saturation. Types of Flow Problems To design an efficient storage system, an engineer must be aware of problems that can arise during storage and flow of bulk solids: • No flow. A stable arch or pipe (rathole) develops within the solid, stopping flow. • Erratic flow. Momentary arches form within the solid, (ratholes), partly or completely empty out, and then collapse. • Flushing. Powders become fluidized, aerate, and flush uncontrollably through the bin outlet. • Lack of design capacity. A large part of the stored material remains stable around a rathole. Manual prodding, severe vibration, and even explosives may be used to restore flow. • Segregation. Smaller particles tend to sift through the voids between larger particles causing accumulations of fines and coarse in various areas of the bin. • Product degradation. Some materials spoil, cake, or oxidize if they remain in a bin too long. This is usually caused by a first-in-last-out flow sequence. • Level control. Measuring the volume of material left in a bin is difficult if a rathole develops. In one portion of the bin the level control device may indicate the bin is full; in another portion it may indicate it is empty. Eliminating Flow Problems All flow problems can be minimized or prevented by suitable design of the bin/feeder unit. This involves knowing the flow properties of the solid, then choosing the appropriate type of bin and feeder to establish the desired flow pattern. There are three types of flow patterns that may occur in a bin: funnel flow, mass flow, and expanded flow. Funnel flow occurs when some of the material in the bin is stationary while the rest is in motion. Funnel flow bins, shown in Fig. 1, are characterized by: • Low head room. A flat bottom or shallow hopper bin has large storage capacity with minimum height. Unfortunately, all this storage capacity may not be usable ("live"). • First-in-last-out flow sequence. The first material put into a funnel flow bin is the last material withdrawn because the flowing material is concentrated in the region directly above the outlet. • Ratholes. Because of the flow channel that forms, a stable rathole develops if the material has sufficient cohesive strength. • Erratic flow. Once a rathole becomes partially or completely empty, it may collapse creating a stable arch and erratic flow. • Flushing. Collapsing ratholes cause flushing and flooding of fine material. • Segregation. If a bulk solid has a tendency to segregate, this tendency will be accentuated as the material is discharged from a funnel flow bin. Funnel flow bins are suitable for coarse, free flowing, nondegrading solids, when segregation is not important. Mass flow occurs when all the material in a bin is in motion whenever any is withdrawn. Char-

Jan 3, 1983