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By T. W. Beck

Roof bolter occupations in underground coal mines continue to experience overexposure to respirable dust. One potential source of dust in roof bolting operations is the exhaust from the roof bolter dust collection system. A wet exhaust conditioner (water box) has been developed to reduce dust emissions from the exhaust of the vacuum dust collection system on roof bolting machines. The exhaust conditioner consists of a muffler chamber and a water chamber with four internal partitions to direct airflow over the surface of the water. The National Institute for Occupational Safety and Health conducted a series of laboratory tests to assess the respirable dust capture ability of this device as compared to the standard exhaust muffler. To determine the dust collection efficiency, both devices were placed in the exhaust stream of a simulated roof bolter dust collection system. Gravimetric samplers were operated upstream and downstream of the exhaust conditioner and muffler to evaluate the ability to capture both respirable coal and limestone dust. Researchers observed a 41 % reduction in dust concentrations for the water exhaust conditioner in the laboratory configuration. Significant levels of dust deposition in the sampling chambers may have contributed to this effective capture rate.

Jan 1, 2012

By Craig E. Saporito

INTRODUCTION Freeport-McMoRan Inc. has been very active recently with two major discoveries and its restructuring activities. This paper describes Freeport-McMoRan's businesses, the two major mineral discoveries, and exciting opportunities within the oil and gas operations. BUSINESS ACTIVITIES Freeport-McMoRan is the largest and one of the lowest cost fully integrated U.S. phosphate fertilizer producers. It is the second largest domestic Frasch sulphur producer. Freeport- McMoRan will become the largest domestic producer of Frasch sulphur when its Main Pass Block 299 sulphur deposit reaches full production in 1993. Furthermore, it is the largest transporter of sulphur produced by others. Its oil and gas activities rank among the largest U.S. independents in terms of production and proved reserves. The copper/gold operations in Indonesia are among the world's lowest cost. When expansion operations reach full capacity levels in 1992, the Indonesian copper/gold complex will be the fifth largest copper operation in the world. Operations are divided into three business segments that include: 1. Agricultural minerals, incorporating sulphur, phosphate rock and phosphate fertilizer activities; 2. Energy, including oil and gas activities; and 3. Metals, incorporating copper, gold and silver operations in Indonesia. In early 1989, Freeport-McMoRan announced the discovery of two world-class ore bodies; a sulphur deposit off the coast of Louisiana on Main Pass Block 299, and a copper/gold deposit -- the Grasberg in Indonesia -- approximately two miles away from the existing Ertsberg East operations. As a result of these major discoveries, Freeport- McMoRan decided to carry out a restructuring program. Its purpose was to sell $1.2 to $1.5 billion of non-strategic assets. Debt levels and associated interest expenses will be significantly reduced, and general and administrative expenses will be reduced, which will place Freeport- McMoRan in an excellent position to fund the development of the Main Pass Block 299 sulphur discovery, the Grasberg discovery, and oil and gas discoveries. This restructuring program also will allow Freeport-McMoRan to achieve the greatest future value for shareholders by focusing on its principal businesses (Figure 1). Strategic Restructuring • Sell $1.2 - $1.5 Billion Of Non-Strategic Assets • Significantly Reduce Debt • Significantly Reduce G&A • Fund Development Of Main Pass & Grasberg • Stronger Company; Positioned For Future Growth • Focus Is On Principal Businesses: - Sulphur/Phosphate Fertilizers - Indonesian Copper/Gold - Oil And Natural Gas Figure 1 - Strategic Restructuring AGRICULTURAL MINERALS Main Pass Block 299 Discovery The Main Pass Block 299 discovery has a proven reserve of 67 million long tons of recoverable sulphur. This is the largest known Frasch sulphur deposit in North America. The discovery increased Freeport-McMoRan's sulphur reserves more than five-fold, and is synergistic with the company's phosphate fertilizer assets. The

Jan 1, 1990

By Stewart Murray, Philip Klapwijk

INTRODUCTION Forecasting commodity markets is like predicting winners in a horse race: to get the answers right, one needs both luck and judgement. Commodity analysts bear some resemblance to racing tipsters as they try to convince interested parties that they have an inside track on which metal is going to win the great minerals race of the 1990s. Commodity analysts share some features with the gentlemen of the turf: • They influence other people in how to spend risk capital, • They don't put their own money at risk, and • If their tips consistently fail to deliver, then they end up looking elsewhere for employment. In order to find winners we need to know about the kind of race we are in and the strengths and weaknesses of all the runners. Miners are not interested in a five furlong sprint: their race is a long distance affair -- after all, the lead-times between discovery and start-up generally approach a decade for mines that will provide the staying power which leaders require in this industry. We need to look at the environment in which our commodities will be competing: in racing parlance, the going. Our equivalent is the economic background: just as some horses are at a relative advantage when the going is soft, so some commodities will do better than others if economic growth is sluggish. If we are going to pick the winners for the late 1990s, and as an industry, make the right investment decisions, nothing is more important than being able to forecast (with at least a semblance of accuracy) how and where the world's economy is going to develop in the next decade. In addressing the question of whether minerals are going to be leaders in the 1990s, this paper considers the idea that it will increasingly be the world outside the industrialised OECD that will provide the incremental growth in demand for mineral products. Economic growth in the Developing World is fundamentally different from that in the OECD, and the pattern of demand for materials in relation to economic output is much more favourable than in the OECD. If we are to forecast the future, we need to be able to understand the past, both in the boom times of the so called Golden Sixties and in the lean years that followed them. This should help us to decide whether the future is going to be like one or other of these extremes or, on the other hand, a return to normality. Having forecast the going, we can look at individual competitors. • Which are best placed to take advantage of the economic, social and industrial trends that we can now dimly foresee? • Which can resist the continued onslaught of the new materials and technologies? • Which of them will best weather the economic storms (assuming that recessions have not yet been abolished)? If we can provide answers to these questions, we will be well on our way to picking winners, i.e., the metals and minerals that will reward their owners with growing demand, steady (and high) prices leading to profits beyond the dreams of avarice.

Jan 1, 1990

By D. W. Loughridge

INTRODUCTION Raising capital in the 1990s is a timely subject. However, many of us thought why should raising capital in the 1990s prove to be unlike it was in the 19805, the 1970s, the 1%0s, or earlier? There are a lot of creative people in banking and in corporate treasury departments. New tools and techniques are continuing to emerge, many of which are discussed in other papers in this book. While we have new financing tools at our disposal, the underlying issue has not changed. Projects and investments must be judged on their own merits. If they cannot be justified by conventional financial analysis, they should not be built. If they can be justified, it is likely that the financing will be available. The challenges faced in raising capital in this decade will persist to the next. The issues of the 1980s -- currency fluctuation, disruptive merger and acquisition activity, commodity price volatility, political risk, and debt crisis -- will all persist in an increasingly international business environment. I will focus on the financing we have just completed for the Escondida Copper Project in Chile. The Escondida financing is structured along the classic project financing model developed in the late 1970s, but it deals with issues of the 1980s and the 1990s. The financing was intriguing, not just because of the technical issues involved, but also the challenge of reaching an agreement in a large and diverse group. Escondida had the one essential feature that made its financing possible. It was commercially very attractive. It would produce at low cost a commodity (copper concentrates) that direct consumers felt would be in tight supply. The project had the direct support not only of its sponsors, but also its customers, and, very importantly, its host government. The non- recourse financing of Escondida would not have been possible without the support of these parties, and without the robust economics that made this effort worthwhile. The issue was more complicated. Operations in all parts of the world entail some political exposure. This project is in Chile, where there was a constitutional requirement that a plebescite be held when the project would be in its early stages. This plebescite would determine the fate of a 15 year old military dictatorship. The project is copper, a commodity generally deemed to be in surplus. Copper has a history of price volatility (whose price has varied from $.58 to $1.53 per pound over the past two years). It is politically sensitive, not only in Chile, but in the United States, Canada and other developed countries. The project is international, with all the problems of dealing with a variety of currencies, a variety of cultures, and a variety of laws and commercial practices. The project is also large and capital intensive, with a total cost of U.S. $1.1 billion. ESCONDIDA PROJECT Escondida, the largest known copper ore body in the world, was discovered in March of 1981, by Utah International in a joint venture with Getty Oil Company. In 1984, both Utah and Getty were involved in ownership changes, Utah being acquired by BHP. A later restructuring of the ownership of Escondida resulted in BHP, as manager, carrying a 60% interest, Rio Tinto-Zinc Corporation (RTZ) 30%, and a consortium of Japanese companies led by Mitsubishi Corporation with 10%. The Japanese consortium is incorporated as JECO (Japan Escondida Corporation). This ownership structure, which spread ownership around the world, was the first tangible step toward managing both the commercial and political risk associated with the project.

Jan 1, 1990

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By Ian MacGregor

INTRODUCTION I retired in 1977 and have been enjoying myself ever since doing odd jobs for various people - on occasions, politicians. I commend it to you as post retirement - get involved in situations that nobody else will take on. It produces all sorts of excitement, it is a lot of fun and, courtesy of the media, you provide great raw material for their current Punch and Judy shows. The example of the adventures in the Escondida financing made me think about the history of the minerals industry in the United States. In order to see more clearly what is going to happen in the future, we have to look at the past and what we have learned, and try to extrapolate from that a scenario for the future. This paper is about global material cycles and the financial needs of the extractive industries. Since about 2,000 years B.C. we have been living in the Iron Age. Since about 4,000 B.C. we have been living in the Copper Age. These have been the two foundations of modern industrial society. Understanding the use of metals and materials helps us understand the civilization in which we live today. Let me focus more closely on the United States, particularly in this century. In the first two-thirds of this century the United States was growing and expanding and developing. It was providing for its inhabitants a society which was enjoying the benefits of a rising standard of living, improved opportunities and the ability to support a population growing at quite a dramatic rate. It is still growing. In the Department of Commerce, there is a clock that shows how many people there are in the United States. It turns all the time; the numbers are going up. On January 21,1980, when Ronald Reagan was sworn in as President, the number on that clock was a little over 220 million, and in the last week before he left, it was travelling towards 245 million. During his period in Washington, we have added , the equivalent of one total state such as California. That gives the dimensions of the U.S. appetite for raw material inputs. The inputs are of critical importance. COMPARATIVE ADVANTAGE During the first two-thirds of this century, the minerals sector enjoyed comparative advantages. There was a clear understanding of the importance of minerals enshrined in the tax legislation of the country from the early decades of this century - the depletion allowance. No other country identified as clearly that the supplies of minerals were finite. As they are used up, just as with a wearing-out machine, one must get capital back to replace the resource when the time comes. Within the last decade, that idea has been questioned and criticised. It is now seen as giving money away to a preferred part of the economy, instead of recognizing what depletion is all about. In previous times it insured that the U.S. always was able to regenerate the capital in its minerals industry, so that it could remain competitive. The U.S. had plenty of everything, including energy. We had a growing population. Equally important, we had an agriculture that led the world in productivity, even as far back as the turn of the century. It continues to do so. We still retain that comparative advantage, an ability to produce our foodstuffs in quantity and quality at excellent cost. Look at another ingredient of our comparative advantage, the energy position. We ran through the first two-thirds of the century with ever- decreasing energy costs. In the 1940s and 1950s the coal industry went into a decline. Why? Because the $3.00 - $5.00 a ton cost of mining coal in the U.S. represented relatively expensive energy. A ton of good grade bituminous coal contains 25 million BTU's. $0.20 a million BTU's represents $5.00 a ton at the pithead. That price was undermined by the increasing ability to find petroleum at even lower costs. At the apex of the growth of development of the American dominated

Jan 1, 1990

By Jan H. Hommen

TRENDS IN MINE FINANCE Reviewing historical trends may help in dealing with future funding strategies. The first trend is the increase in the use of debt to fund corporate America. Surprisingly, when comparing that with other corporates in the global marketplace, the U.S. does not look too poorly. Japanese, in particular, but also German companies, are much more leveraged than their U.S. counterparts. Note that in Japan and Germany the government and the consumer have shown substantial restraints when it comes to credit. Not so in the U.S. where the savings rate (4%) is much lower than that in Japan (20%) and in Germany (14%). As a result, the cost of leverage is substantially lower in Japan and in Germany than in the U.S. Lower debt costs in these countries allows one to obtain more of it for the same price. The close relationships between financial institutions, corporations and governments in Japan and Germany also make the risk of leverage more bearable and understandable. Also note that interest rate volatility in these countries is more subdued. The investor base in common stock is also changing. Private pension funds have been net sellers of equities during the last few years while public pension funds have been net buyers. Individuals are basically out of the market. It is estimated that over $330 billion of equity was retired in the U.S. through 1986-1988. The reasons are well known: restructurings, buy-backs, takeovers, mergers, and buy-outs. This de-equitization is likely to continue as the cost of equity capital is higher than the cost of debt capital, even on a before-tax basis. Because there has been no market for equity since October 19, 1987, junk bonds have replaced equity capital in the corporate finance structure. The non-investor-grade borrower has access to the public markets through high-yielding debt securities that often look like senior equity. Deregulation has also provided 24-hour markets; securitization can now liquify assets that before were rusting on balance sheets; information processing and communication tools give facts that are instantaneously available, creating the need for products to cover risk and exposures unknown before the start of the information and technology explosion. Thus we now have swaps, options, futures, options on futures, caps, as well as program trading, portfolio insurance, index funds, etc. Globalization will be unstoppable. Today's environment demands it. Corporations are now global competitors, even though they may have never shipped a product off-shore. Boundaries are disappearing and impediments have been removed. Stocks can be issued in a global offering with distribution in all major financial centers of the world. The high leverage of Japanese companies has made common stocks very scarce, which with the high savings rate, makes equity capital inexpensive in Japan. If markets were perfect everyone would issue stock in Tokyo and buy it back in New York. This would certainly stop the bleeding on the balance of payments. With the deficit balance of payments in America, it is no surprise that the cost of money is expensive here. The risk-return relationship on U.S. equity is not favorable enough to appeal to Japanese equity investors. The Tokyo-market, helped by a stronger yen, surpassed New York as the most important equity market in the world. The question is, will the Tokyo market hold up when Japanese domestic consumption increases at the expense of savings? In the U.S. debt markets, the plain vanilla debenture is making a comeback after a period of absence. Commercial paper has replaced short term bank borrowings for working capital funding by larger corporations. The banks have made an interesting comeback with loan sale programs that will continue to attract borrowers. There will be a continuing

Jan 1, 1990

By Alistair Frame

INTRODUCTION In April 1988 discussions were about to start with BP on the possibility of buying their- mineral interests, and it took a long time to arrange a deal. I will talk about RTZ without BP Minerals, look at the new RTZ with BP Minerals, discuss the outlook for metal prices, and review the problems in South Africa and develop the case against sanctions on that country. RTZAT THE END OF 1988 Late in 1987, after completing a worldwide review of our strategic thrust, we decided: 1. That the business focus would be to remain a major diversified natural resource group with interests in related industries. 2. To divest non-core and low growth businesses. 3. To develop a logical acquisition plan. 4. To emphasise organic growth and, most importantly, to enhance shareholders' wealth by capital increase and a progressive dividend policy. Subsequently, we concluded that we should sell our oil and gas business and dispose of several assets for which we saw little growth potential. The disposal programme raised some U.S.$ 1,600 million, representing a significant capital gain on our various investments. All transactions were carried out by our small Head Office staff in London, without the help of merchant banks and lawyers, and we were able to safeguard the employment of our staff in all these operations. The most interesting disposal was of our oil and gas interests. Before the 1987 strategic review, we had ambitions to develop our oil and gas interests and to become the leader in the second division of European oil companies. Our interests, which were purely in exploration and production of oil and gas, consisted of the 100% owned RTZ Oil and Gas company, and 29% of LASMO, a publicly quoted U.K. oil and gas company with extensive worldwide interests. LASMO, in turn, owned 25% of Enterprise Oil, one of the more successful of the North Sea oil exploration and production companies. Prior to the end of 1987, our intention was to acquire control of both LASMO and Enterprise. However, when we evaluated the net asset value of these two companies based on our oil price assumptions, which were pessimistic for the next five years or so, we concluded that they were both trading in the market at significant premiums. This, taken with the additional premium required for acquisition and the high cost of exploration, led us to conclude that, since funds could undoubtedly be used to better effect, we should sell our interests. Turning to the other major achievements in 1988, we commissioned, and built up to design levels in a very short period of time, the Morro do Ouro gold mine in Brazil. This mine reached its design output of 100,000 ounces of gold per year within three months of start-up, which was on time and under budget. We are now considering a possible expansion of this property. In South America, Utah International, Mitsubishi and RTZ arranged non-recourse finance, with post completion guarantees, for the giant Escondida Project in Northern Chile. Financing came from a group of banks in Japan, Germany and Finland -- the countries to which most of the concentrates will be sold -- and from the LEC. The average output of the mine for the

Jan 1, 1990

By H. N. Kalia, J. B. Gresham

Several attempts have been made in the past 60 years to commercialize the vast oil shale deposits of the US. However, the industry has yet to become economically viable. To date, it has not been possible to produce oil from oil shales at a competitive price compared with oil produced by conventional methods. The development work, nevertheless, has been fruitful in furthering the art of thick bed mining and technology of in situ retorting. The in situ method has the potential of recovering oil from thick beds, and the resource recovery potential is much greater than that from underground mining and surface retorting. In situ methods require that the shales/marlstones be fragmented in place to induce adequate porosity and permeability to allow in situ heating of the fragmented shales. This can be accomplished by using explosives. However, it has been found that the existing blasting systems, though very efficient, have some drawbacks. The explosives become insensitive when shot in multiplevertical decks. They can also become insensitive when spaced horizontally at close proximity to other charges. Also, since the blasting is done in a very limited free face, the delay time that can be allowed between charges is also quite limited. Consequently, it is not always possible to routinely predict the performance of the blasting system. Furthermore, since it is not possible to undertake secondary blasting, it is imperative that the blast design function properly. Recent successful retorting by Occidental Petroleum Co. Of Retorts 7 and 8 suggests that some of these problems may have been overcome. This paper addresses some aspects of in situ retorting and problems that have impeded the development of a viable oil shale industry in the US.

Jan 1, 1986

A. Cook K.A. Grace's article advocates usage of the terms describing resources as defined by the US Bureau of Mines (USBM) and the US Geological Survey (USGS). Originally recommended in 1943, the terms were revised in 1976 and again in 1980. Mr. Grace further recommends that the term reserves should be severely restricted and that it should encompass mining and processing factors. The list of references quoted in the article does not, however, mention the study concerning reserves that was made over a period of almost four years by a joint Committee on Definitions. This committee was sponsored by three societies - the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the Society of Economic Geologists (SEG), and the American Institute of Professional Geologists (AIPG). Most of the detailed work was done by a working party appointed by the Society of Mining Engineers (SME) of AIME. After studying previous definitions in the US as well as in the United Kingdom, Canada, Australia, France, and other European countries, the following definitions were proposed and accepted in 1974 by the SME board of directors. (Ore reserve definitions in Rhodesia, South Africa, or New Zealand were not mentioned as having been reviewed. Table 1 lists definitions from MINING ENGINEERING, July 1975. Notice in Table 1 it was mentioned, under Resources, that the definitions of reserves were recommended for the purposes of commercial evaluation. It was further stated that the terminology adopted by the USBM and the USGS, as released to the public, covering resources, was recognized as such. Mr. Grace also recommends that reserve calculations should allow for future losses in ore tonnage, ore grade, milling, and smelting. Unfortunately, it might take years to develop a prospect after it has been discovered. Mining methods have to be tested before being finalized in order to know what tonnage of ore is going to be lost, or how much dilution is likely to occur. The same problems are present in concentrating or in smelting. Operating mines usually know how mined grade compares with ore reserve grade. They can usually predict fairly closely what their final metal recoveries are probably going to be. It is, however, expecting too much to have to delay quoting reserves from say a recently drilled prospect. Any responsible mining geologist or mining engineer (or company for that matter) should state several things about an ore reserve calculation: that it is or is not a preliminary estimate only; that estimated grades have not been diluted to allow for a future, as yet unknown, mining method; that metal recoveries are or are not only tentative, based perhaps on drill hole samples only or on no metallurgical testing at all. [ ] Reserves of a partially explored prospect are always quoted when it becomes necessary to raise capital. If they are described as preliminary only (really just tonnage and grade estimates and not true "reserves") in addition to being accompanied by some of the items just mentioned, nobody is going to be misled. If, on the other hand, a report by a member of the SME or SEG is intentionally misleading, the individual must be reported and eventually disbarred from his or her society. To summarize, let us stay with the definitions of ore, ore reserves, and related terms as recommended and accepted by SME. I might add that on occasion I have used a fourth category in my ore reserve calculations, namely Geologically Possible Ore. This category is more or less the same as Inferred ore defined by the USBM and USGS. I have never given a grade to this category, which may be based only on geological mapping, geochemical sampling, or geophysical traversing. ?

Jan 1, 1986

By R. C. Rastogi, F. F. Aplan

The goal of this study is to evaluate the coal flotation process and the interaction of the chemical (reagent) and hydrodynamic (machine, operational) variables as they affect yield, flotation of various sized particles, and sulfur and ash rejection. Coal flotation is found to follow a first order process with the coal floating much faster than either pyrite or ash. This circumstance may be used to achieve gangue rejection during flotation. When floated with MZBC, cresol, or pine oil frothers, coal floats in the size sequence: 108 pm ( - 65 mesh), 589 x 808 pm (88 x 65 mesh), and 1.17 mm x: 589 pm (14 x 18 mesh). However with a substantial amount of fuel oil collector, all particles tend to float roughly in proportion to their content in the feed. An increasing aeration rate was found to be the most important variable in increasing the coal flotation rate. This increase in flotation rate, unfortunately, is also accompanied by an increase in the flotation rate of the pyrite. The rejection of pyrite during coal flotation is best accomplished at low aeration rates, low frother concentrations, and low impeller speeds.

Jan 1, 1986

By S. D. Thompson

An AIME transaction by P.L. Allsman (1960), "Analysis of Explosive Action in Breaking Rock," contains many useful concepts applicable to blast design. Of special interest was the derivation of a heave blasting burden formula, which is important in establishing the maximum burden. Unfortunately, its derivation contains a fundamental error and then a compensating one. This formula was: [bImpulse _P d At max =nwuwu where: bmax = maximum burden in m (ft). P= average detonation pressure in N/m2 (lb per ft2). A= duration of the average detonation pressure in sec. n= 3.1416. w= specific weight of rock in N/m3 (lb per ft3). u= minimum velocity that must be imparted to the rock in m/sec (ft per sec). d= borehole diameter in m (ft).] The derivation used the impulse-momentum principle, with a 0.3 m thick (1 ft thick) radius of rock mass being acted on by an explosive impulse. However, the rock weight was not converted to mass by dividing by the gravitational constant. This mistake can be verified by checking the units in the formula, which resolve into m1/2-sec instead of meters. Adding the gravitational constant corrects this: [P d Atbmax =gu g = gravitational constant equal to 9.81 m/sect (32.2 ft per sec2).] If the minimum velocity is now taken as 0.3 m/sec (1 ft per sec), as was recommended, excessively large burdens result. Any appropriate rock velocity should be capable of throwing the rock mass a minimum distance so that the swell needed for breakage can occur. Unless the burden is extremely small and the bench height is very high, it is unlikely that a velocity of only 0.3 m/sec (1 ft per sec) will be sufficient. A review of the literature indicates that average rock velocities observed by camera studies typically range from 15 to 30 m/sec (50 to 100 ft per sec) (duPont deNemours and Co., 1977; Tansey, 1979). On this basis, a minimum rock velocity of about 15 m/sec (49 ft per sec) would be expected and not 0.3 m/sec (1 ft per see). When a velocity of 15 m/sec (49 ft per sec) is inserted into the corrected formula, the results approximate those of the original formula with a velocity of 0.3 m/sec (1 ft per sec). The errors were approximately self-compensating [(9 = 1.24)]. ? References Allsman, P.L., 1960, "Analysis of Explosive Action in Breaking Rock," Transactions, AIME, Vol. 217, pp. 475-476. E. I. duPont deNemours and Co., 1977, Blasters' Handbook, 175th Anniversary Edition, Dupont, Wilmington, DE, pp. 233. Tansey, D.O., 1979, "The DuPont Sequential Blasting System," CIM Bulletin, Vol. 72, July, p. 80. Thompson, S.D., 1981, "Critical Review and Revision of Surface Blasting Practice," MS thesis, West Virginia University, pp. 308-316.

Jan 1, 1986

By G. T. Lineberry, L. Adler

Due to safety-imposed constraints on clearances for mobile bulk handling equipment, it is necessary to optimally select a unit based on speed and size. The unit cannot be both large and fast. Since output is proportional to both size (or capacity) and speed, the combination must be carefully examined to maximize output. A simple graphical procedure and a calculus-based solution are presented to accomplish this. While the procedure applies to all mobile bulk handlers, as an example of the solution technique, attention is focused on shuttle cars. Background Major variables To fully define a bulk handling problem, the conditions, equipment, and activities must be characterized. The conditions and activities, when lumped together, are termed "encumbered space," since they "act to impede motion, as with a burden" (Lineberry, 1979). The insertion of mobile bulk handling equipment into what is already a difficult set of conditions and activities compounds the state of encumbrance, as limited space is competed for by many normal and life support systems. Long (1972) recognized the effects of design criteria, including road width, on haulage vehicle speed and, therefore, on production. Velocity-clearance curves Velocity-clearance curves are either available or can be constructed in the field. A preliminary set of curves for average conditions and activities is shown in Fig. 1, where clearances are only for the side of the vehicle (Lineberry and Adler, 1984). These curves set the safe speed limits for a vehicle operating at given clearances, under given conditions and activities. When feasible, velocity-clearance curves should be constructed through field measurement and observation. Curve construction should also consider haulway roughness, distances, and operator skill, as well as loading and dumping characteristics. It should be noted that haulage capacity determination is a total systems problem, not one just dependent on velocity and clearances. Production requirements and company capabilities also influence capacity determination.

Jan 1, 1986

By A. S. Malicsi, I. Iwasaki

The removal of hydrophobic coatings of flotation collectors from iron ores becomes of interest when a duplex flotation process is considered for upgrading, when a pelletizing process is considered for a concentrate floated with a fatty acid or a soap collector, or when a disposal of froth products from cationic silica flotation is of environmental concern. Ozone can oxidize organic compounds rapidly, thereby removing the hydrophobic coatings of flotation collectors. Ozone is widely used for treating and purifying drinking water, waste water treatment, and for chemicals processing (Murphy and Orr, 1975; Rice et al., 1980). Its uses in metallurgical operations, however, are very sparse (Allegrini et al., 1970; Chernobrov and Rozinoyer, 1975; Ishii et al., 1970; Iwasaki and Malicsi, 1985; Matsubara et al., 1978). Yet, its high reactivity and the absence of potentially hazardous byproducts become of interest in destroying flotation reagents adsorbed on mineral surfaces or remaining in mill water for recycle or for discharge. Duplex Flotation A duplex flotation process, as applied to oxidized iron ores, would involve a fatty acid flotation of iron minerals followed by an amine flotation of the siliceous gangue from the rougher iron concentrate. Such a process has been used in the Florida phosphate fields. Fatty acid coatings cannot be removed as readily with a simple acid or alkali treatment from iron oxide surfaces as from Florida phosphates. A combination of reagents, such as lime and quebracho, lime and alkali phosphate, or sulfuric acid and oxalic acid, has therefore been proposed. In a previous article (Iwasaki et al., 1967) , the use of activated carbon was found to be effective in removing fatty acid coatings both in the duplex flotation and the pelletizing processes. The use of ozone offers another approach to the removal of fatty acid coatings from iron oxide surfaces. To investigate the possible application of the duplex flotation process, a specularite ore from Michigan analyzing 36.5% iron was used. A 600-g (1.3-1b) sample was ground in a laboratory rod mill together with 250 g/t (0.5 lb per st) of sodium silicate to -150 µm (-100 mesh). This was transferred to a Fagergren laboratory flotation cell, and deslimed four times at 20 µm (quartz equivalent). The deslimed pulp was transferred to a laboratory conditioner, diluted to 40% solids, and conditioned with 250 g/t (0.5 lb per st) of soda ash and 250 g/t (0.5 lb per st) of oleic acid. The conditioned pulp was then transferred back to the Fagergren cell, floated until barren of froth, and the rougher froth product was returned to the cell and cleaned. The results are presented in Table 1. The cleaner concentrate at this point analyzed 45.3% Fe. The cleaner concentrate coated with fatty acid was transferred to a 2-L (0.53-gal) beaker. While the pulp was agitated with a glass T-stirrer, ozone was bubbled into the agitated pulp for 15 minutes at a rate of 10 mg/min (0.00035 oz per min) ozone (250 g/t or 0.5 lb per st 03 feed). It was observed that the pulp ceased to froth after about 10 minutes. The amine flotation of siliceous gangue from the ozonated pulp was carried out first by conditioning with a dextrin, a commonly used starch depressant for iron oxides. This was followed by flotation with a stage addition of an ether amine at increments of 100 g/t (0.2 lb per st). Three stages were required to float the siliceous gangue to near completion. The three froth products were combined and cleaned twice. When the cationic flotation Rougher, Cleaner 1 and Cleaner 2 cell products were combined, an iron concentrate analyzing 64.5% iron was obtained at an overall iron recovery of 72.8%. Pelletizing Fatty acid flotation concentrates have been pelletized successfully in northern Michigan mills. But at other locations, fatty acid coatings on iron flotation concentrates proved so undesirable in agglomeration that other methods of concentration had to be sought. For example, a sinter mix containing iron ore concentrates upgraded by fatty acid flotation resulted in decreased productivity. This occurred because the micropellets of particles with the hydrophobic coating are less tolerant of moisture. Thus, the bed permeability is lost (Beebe, 1965). The agglomeration of concentrates obtained by the fatty acid flotation alone, and the hydrophobic coatings destroyed by ozonation or by the duplex flotation process, is not expected to cause any difficulty since the surfaces of the concentrates would be hydrophilic. Removal of the fatty acid coating with activated carbon, indicated by the loss of floatability, was shown to restore the decrepitation temperature of wet balls during drying cycle (Iwasaki et al., 1967). Disposal of Cationic Silica Flotation Froths Recent demands of iron blast furnaces place the silica content of the magnetic taconite pellets at about 5%. Conventional process for magnetic taconite involving fine grinding and magnetic separation often produces magnetic concentrates analyzing in excess of 5% silica. This is due to the presence of the middling grains of siliceous gangue and magnetite. Cationic silica flotation of magnetic taconite concentrates (DeVaney, 1949) may be used to reduce the silica content. But the amine coating on siliceous gangue becomes of environmental concern when the flotation tailings are discarded in tailing ponds.

Jan 1, 1986

By S. E. Clay, G. P. Martins, P. R. Taylor

A grain model for gas-solid reactions in cylindrical pellets is formulated and solved numerically. The numerical solution demonstrates when it is safe to assume either a thin disk or a long cylinder geometry, and when the more general two dimensional geometry must be used. The numerical solution also demonstrates the solution of a two-dimensional moving boundary problem (i.e., when the reaction is diffusion controlled and the ratio of the height to diameter dictates two dimensions).

Jan 1, 1986

By R. W. Marrs

Kimberlite contains a unique assemblage of minerals and exhibits a characteristic pattern of spectral reflectance in the visible and near-infrared wavelength region. This spectral pattern is readily discerned in well exposed kimberlite outcrops, but becomes increasingly difficult to identify when outcrops are partially covered by vegetation or soils derived from nonkimberlitic materials. Detection of poorly exposed kimberlite diatremes is possible using multispectral imaging techniques where spectral bands are chosen to optimize contrast between the kimberlitic soils, nonkimberlitic soils, and vegetation. Careful processing of the multispectral data is essential to separate the spectral signature of kimberlite from the signatures of other components of the scene.

Jan 1, 1986

By A. Sainato, E. Baker, J. Cervik

In Europe, water infusion is used widely to reduce generation of respirable dust during mining. Its use in the US is limited to a few plow operations in the deeper parts of the Pocahontas No. 3 Coalbed. The technology for infusing water into retreating longwalls is described and results of a recent Bureau test in the Lower Sunnyside Coalbed demonstrated dust reductions ranging from 47% to 64%. Because water infusion increases moisture content of the coalbed, face air velocities in excess of 2.5 m/s (500 fpm) are possible, further diluting dust levels before dust entrainment occurs. An economic analysis shows a 23% reduction in operating costs when coal production is increased by changing from unidirectional to bidirectional mining with water infusion.

Jan 1, 1986

By M. J. Hart, E. C. McDowell

There are no formulas that guarantee success when obtaining zoning approval for mineral aggregate mining. Local land use decisions often represent the most controversial issues faced by a community. Public awareness, concern, willingness to get involved, sensitivity to the environment and, probably most important, fear of change only begin to describe the atmosphere in which local land use decisions are made. The public hearing process is quasi judicial, adversarial, and unfortunately, not designed for resolution of disputes. It is not difficult to see the need for an alternative to present methods. Hopefully, some day there will be a process that will do away with or at least minimize unnecessary, unproductive, and unmanageable community conflicts.

Jan 1, 1986

By H. Nakazawa, I. Iwasaki

Galvanic contact, occurring between electrically conducting minerals in flotation pulps, may affect the nature of mineral surfaces and influence their floatabilities. Rest potential and galvanic current measurements were made on an electrode combination of pyrite and pyrrhotite under nitrogen, air and oxygen aeration conditions. The results were correlated with their oxygen-consuming characteris- tics and flotation behaviors. The galvanic contact improved the floatability of pyrrhotite, but adversely affected that of pyrite. Auger electron spectroscopy, X-ray photoelectron spectroscopy, and scanning electron microscopy indicated that the formation of hydroxide or oxide and sulfate species of iron on pyrrhotite decreased, whereas that on pyrite increased when these minerals were held in contact. An electro- chemical mechanism was proposed for the observed behaviors.

Jan 1, 1986

By M. I. Kabir, R. S. Schechter, L. W. Lake

This paper presents the development and application of a novel scaling technique that, when used with a streamline model, causes a "bundle" of one-dimensional (1-D) problems to reduce to a single 1-D calculation. The 1-D bundle is the streamline representation of a two-dimensional (2-D) problem. The 1-D calculation accounts for chemical-rock interactions and the streamline model for areal sweep. The scaling technique significantly reduces computation time, is readily modified to desktop calculations, and can be applied to both absorbing and reacting species. The work was sponsored by the US Bureau of Mines.

Jan 1, 1986