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By Eugene Guccione

The domestic iron and steel industry is a vital and major segment of the US economy. Including its employees in coal mining, iron ore mining, limestone quarrying, and related transportation, the industry directly provides jobs for approximately 750,000 people, has a $10 billion annual payroll, and indirectly supports a substantial volume of employment for the entire country. Because of its size and visibility, if nothing else, the US iron and steel industry has always been an easy target of attack and has often been subjected to a great deal of political sound and fury. Today, the industry has different troubles and is fighting for survival: it is faced with spiralling costs, inadequate earnings, labor unrest, foreign competition, government over-regulation, an acute shortage of investment capital, and an all-time high debt burden.

Jan 11, 1975

By Thomas M. Plouf

Flotation, as we know it today, is a physiochemical method of concentrating finely ground ores. The process involves chemical treatment of an ore pulp to create conditions favorable for the attachment of certain mineral particles to air bubbles which are carried to the surface of the ore pulp for removal. Frother reagents, combined with air and the agitation mechanism, produce the effective bubbles in a flotation cell. A method of analysis is presented to evaluate the effect of frother reductions and additions on a bank of flotation cells, and to economically determine if and to what extent frother reductions and additions are justified. Comparative evaluations of different frother systems, as well as the amount of frother used in a given flotation machine, cannot be made on the frother cost alone. An indepth study must be made to evaluate any given frother as applied to a particular ore body. The recovery of a given mineral is as dependent on the amount of frother as on the type of frother used. An actual case study follows in which the amount of frother required by two different flotation machines was used to make a decision as to which unit performed more efficiently based on costs. This same method may be used to evaluate new frothers as well as to determine if a larger frother addition is advisable.

Jan 11, 1975

By Christine Alexander

Twenty years ago, the northern Oquirrh Mountains overlooking Salt Lake City were bare. Heavy logging and overgrazing combined with erosion and uncontrolled forest fires had severely denuded the mountains by the turn of the century. As a final coup de grace, a copper smelter was built there in 1906, and for the next 50 years its sulfurous fumes killed off what little vegetation remained. In 1956, Paul Rokich, a biology student at the Univer¬sity of Utah, started to surreptitiously restore the mountains. For the next 17 years, Rokich devoted his spare time and money to replanting the Oquirrhs, with the result that several thousand acres of the mountains are green again, and animals have returned: deer, elk, and rabbits thrive among olive, maple, and fruit trees, wheat grass, and sunflowers.

Jan 10, 1975

By Alan K. Burton

Along with tires and transmission systems, engines have been a limiting factor in the growth of large off- highway trucks. The problem, primarily, has been the development of reliable, high-performance engines that are not prohibitively heavy or expensive. For many years, horsepower to overall truck weight ratios have been in the vicinity of 300 lb per hp for rear dump units up to 50 tons capacity. This ratio is obviously very poor when compared to the much lighter and smaller highway trucks, which frequently have a performance ratio of 100 lb per hp. Unfortunately, the larger mining trucks have not been able to match even the 50-ton trucks, and in some cases, ratios have dropped as low as 450 lb per hp. This results in a performance of only 67% of that achieved by the older smaller trucks. Thus, the message is clear: what is needed is more horsepower and less weight.

Jan 10, 1975

By A. D. Rovig, T. J. Fisher

By converting its autogenous mills to steel ball mills at the C. E. Weed concentrator in Butte, Mont., The Anaconda Co. has achieved substantial increases in through- put tonnage, plus better recoveries as a result of the finer feed size to subsequent flotation operations. If steel grinding is so superior to autogenous grinding, why wasn't it chosen in the first place? Briefly, here's why:

Jan 10, 1975

By F. Milton Lewis, Roshan B. Bhappu

In Part I of this article, published in the September issue of MINING ENGINEERING, Edward S. Frohling and Robert M. McGeorge of Mountain States Mineral Enterprises, Inc., reviewed the general overall financial aspects and methods of raising the necessary capital for developing the mine. In Part 2 of this two-article series, we will present several case histories to show how realistic feasibility studies are used for evaluating the choices and options entailed in mining ventures. Basically, after a potential ore body has been discovered, and the necessary funds obtained for the development of the deposit, the next major problem is one of ascertaining what specifically is to be produced, and the costs of production. The profit potential of the mining venture can then be accurately assessed by the mine owner, operator, or loan officer.

Jan 10, 1975

By C. W. Schulties, W. J. Mallio, L. J. Petrovic, J. A. L. Campbell

Roof control comprises about 35% of direct and indirect underground mining costs. In addition, difficulties in estimating roof control costs for new areas lead to the greatest uncertainties when negotiating coal contracts. And obviously, coal cannot be mined if the roof can't be held. Accordingly, there are strong incentives to attack this problem on as many fronts as possible. One successful geological modeling technique for predicting future roof conditions was recently applied at Peabody Coal's Simco mine No. 5, located in Coshocton, Ohio. Benefits derived from it included: - A better identification of areas where poor safety conditions may be encountered. - Improved roof control cost estimates for contract negotiations. - Estimates of time-duration while mining in bad roof areas. - Labor and materials cost predictions in an existing mine. - Productivity increases through prior knowledge of areas to avoid.

Jan 10, 1975

By Leland O. Erdahi

Many problems have surfaced in our economy during this decade, and the mining industry has certainly had its share: huge capital outlays for environmental controls, volatile markets, double-digit inflation, inadequate capital markets, political uncertainties-plus shortages of energy, manpower, supplies, and equipment. All these and other problems have left their visible marks on the economy of our industry. Solutions are slow in coming; perhaps, in some instances, there are no right answers. However, it appears that many companies are using joint ventures to an increasing extent in efforts to reach partial solutions to some of these problems. A joint venture does present an economic alternative that should be examined-especially when trying to answer questions arising within the current economic context. The dictionary defines "venture" as an undertaking involving chance, risk, or danger. The word was originally applied to hazardous undertakings involving delivery of cargoes to distant ports and subsequent disposition of the merchandise, but it is now applied to any project of limited scope and temporary duration. When two or more entities join in such a project, it becomes a joint venture, and this is the context in which I have used the term. Joint ventures may be formed for exploration, for development of a new ore body, or for expansion of an existing operation. Each requires different approaches for negotiating and drafting the agreement governing the conduct of the joint venture.

Jan 9, 1975

By Timothy Collins

There was once a speculative period of interest in small mining companies that is commonly referred to as "the uranium boom of the 50's." In the late 60's, there was a second mining stock boom: it centered around uranium and silver, when silver had reached a new high of $3.60. In the mid 1970Js, there may be a new boom in the making, and it appears that substantial public and institutional interest in mining equities will finally result in a viable long-term capital market rather than the boom-or-bust pattern of the 50's and 60's. The reason for Wall Street's renewed interest in mining is understandable: most mineral commodities have recently gone up in price. Domestically, these price increases have come in the wake of the inflationary spiral unleashed by years of unbridled government deficit spending and erratic fiscal and monetary policies. Internationally, of course, the biggest push for higher prices has come from third-world countries whose primary income derives from indigenous natural resources. Many of these countries-whose fiscal and monetary policies haven't been models of excellence either-have attempted to cope with the worldwide economic mess by forming cartels that could control the price of commodities. What's happened to petroleum is well-known; what's happened to copper, bauxite, phosphate, and uranium is part and parcel of the same syndrome.

Jan 9, 1975

By Barry S. Epstein

Financing the acquisition of a going coal mine operation has not had the exposure other finance-oriented projects have had. Therefore, C.I.T. feels that coal mining people and financial people should improve their understanding of the factors involved in this important type of acquisition. The discussion consists of two major subjects: analysis of the acquisition of the property, and sources and terms of funding the acquisition. Source and Terms of Funding There is a need to keep the competent medium-sized independent operator in the coal business, especially in these times of energy shortage. The creation of a resale market for coal mines encourages new investment in the coal mining business by medium-sized operators and their financial backers. Who provides debt and equity financing to acquire going coal mine operations and on what terms?

Jan 9, 1975

By Donald W. Gentry

Many firms in the minerals industry are facing enormous capital-equipment requirements for existing operations, planned expansion programs, pollution control systems, etc. Yet, because of existing economic conditions, mining companies find it increasingly difficult to obtain reasonable financing for the acquisition of large, high-cost capital equipment. One way of obtaining the use of mining and other major pieces of high-cost capital equipment is through leasing. The popularity of this approach is evidenced by the growing number of leasing companies, equipment manufacturers, and financial institutions now offering this service to their customers. Indeed, leasing has become a billion-dollar industry, and many commercial banks have developed sizeable portfolios in this area. "Should we buy or lease?" This question eventually comes up whenever a mining company needs additional major capital assets. Unfortunately, many buy-or-lease decisions are made on an emotional basis-rather than on a proper financial evaluation that would yield the…

Jan 9, 1975

By Robert M. McGeorge, Edward S. Frohling

Most mining engineers and metallurgists who get out of school usually wind up working for a large or medium-sized company and are seldom heard of again. The enterprising few who decide to go into business for themselves soon discover that while they can adequately tackle the various technical problems involved in developing a new ore body, they know little about putting together a feasibility study-and even less about financing their project. If you are in that predicament, you'll probably tend to view the financing problem as insurmountable, especially when the economy is in a slump, capital is scarce or seemingly non-existent, the equity market is in the doldrums, labor and equipment costs keep going up relentlessly-and, to make things worse, you must operate within the competitive context created by large mining firms that seem to have in abundance all the capital and managerial expertise you feel you lack. If it's any consolation, many potentially successful properties, whether owned by big companies or small firms like yours, never reach the production stage either because of illogical expenditures made in the early phases of development or because of inefficient management. And inefficient management is a common plague in big and small companies

Jan 9, 1975

By Eugene Guccione

FOREWORD-Back in October of last year, I approached three of the largest commercial banks in the country to solicit an article about the role of commercial banks in mine financing. "We'll be delighted to cooperate with you in any way we can," was the stock response. As the September 1975 deadline approached, however, every bank officer I had contacted almost a year earlier informed me that he couldn't write such an article be- cause of "prior commitments," "an excessive workload," or "vacation schedule," etc. This was not a total surprise. Any commercial banker will be truly delighted in talking with you, if you have a good mining prospect, a good reputation, a good batting average in your business-and if he has the capital you want to borrow. But what happens when banks themselves are illiquid? Much as they would like to help you, they simply can't. And most of them clam up.

Jan 9, 1975

By Alan K. Burton

An industry-wide demand for bigger and more efficient trucks, with their supposed economies of scale, is well established. Some trucks have been, and often are brought "off the shelf," with the manufacturer offering only certain minor options, much as in the private automobile industry. The market is well established; there is keen competition; in recent years there have been few significant changes, and few are expected. With large trucks (100-ton-capacity and over), however, the situation is different. Here, with an individual truck costing several hundred thousand dollars, there is an ever in- creasing trend to engineer a truck for a specific application. The body will be designed and sized for the material that the truck will carry; the engine and transmission will be geared to the haul profile, and tires will be designed to suit road conditions and work requirements. Early Truck Development Haulage trucks designed expressly for open-pit mine service were introduced during the 1930's. The first models to arrive on the scene hauled about 15 tons, and easily outperformed the modified highway trucks that had been used for mine haulage up to that time.

Jan 8, 1975

By Raphael G. Kazmann

Is electricity from nuclear-fueled power plants a partial solution to the energy shortage? According to various public and private institutions, the answer is an emphatic "yes." According to various other groups, the answer is an equally emphatic "no." I believe that a true and scientifically valid "yes" or "no" answer at this stage is premature because of conflicting claims and inadequate data regarding these two fundamental aspects: (a) the duty of uranium, i.e., the actual number of kilowatt-hours that can be generated from a ton of natural uranium through the use of light water reactors; and (b) the availability of uranium in the US to meet the lifetime requirements of the reactors scheduled for construction in the 1975-1985 period, as well as to supply the requirements of those reactors now in operation.

Jan 8, 1975

"Minerals in Transition" is the timely theme of this year's SME-AIME Fall Meeting and Exhibit, to be held September 10-12 at the Salt Palace, Salt Lake City, Utah. Approximately 2000 members and guests are expected to attend the meeting, which will include 117 technical papers, presented during 27 sessions. To complement the technical program, a record number of mining manufacturers and suppliers will be on hand to exhibit the latest in equipment innovation and professional services.

Jan 8, 1975

Improvement of drilling operations through the development of new, unconventional drill bits is a prime research target at Sandia Laboratories, Albuquerque, N.M. Sandia is currently focusing efforts on four new bit designs which its engineers believe may eventually improve penetration and reduce operating costs. The Energy Research and Development Administration (ERDA) has budgeted $500,000 in support of this program to date. Two of the drill bits-one that chips rock with high voltage spark discharges, and another which fires small projectiles into the rock ahead of a regular roller bit-are designed to increase both penetration rates and downhole bit life.

Jan 8, 1975

US underground mine production of nonfuel minerals was 153 million tons of crude ore in 1971, according to a recent US Bureau of Mines report compiled by Dravo Corp. Underground capacity includes all nonfuel mineral commodities and is distributed into three general categories: (1) metallic ores; (2) nonmetallic ores; and (3) construction materials, such as clay, sandstone, and limestone. All three categories are produced by a combination of open-pit and underground methods. While US underground mining represents only 5.9% of total domestic capacity, it is significant in the types of products produced. Domestic supplies of potash, trona, A lead, zinc, sulfur, and fluorspar are almost exclusively recovered from underground mines, as well as a significant portion of the gold, silver, molybdenum, and salt supply.

Jan 7, 1975

By Glenn C. Waterman

The use of stream sediment and soil sampling as an aid in exploration has markedly increased in recent years as more and more attention has been directed to areas that are generally geologically favorable for mineralization but show little outcrop. Numerous ore deposits and many hundreds of mineral deposits that have no surface exposure have been found associated with anomalous geochemical patterns. Sophisticated techniques have been developed to "wring out" of geochemical data subtle information that is pertinent in defining areas of exploration interest. Variations in metal patterns in soils and sediments as they are affected by pH, Eh, weather, topography, etc., are pretty well known. Field studies have determined the variations and controls of metal ion distribution in the several soil horizons and the contributions to metal concentrations made by different types of vegetation. Less well known is how to interpret geochemical data since thickness of soils over bedrock varies in an unknown fashion and, particularly, where glacial debris of unknown thickness is piled on top of soils or scoured bedrock.

Jan 7, 1975

By John F. Havard, Armine F. Banfield

Sooner or later, we all get involved in the economic study and valuation of a mineral deposit. To communicate clearly the necessary information, we must scrupulously use various terms with specific meaning. All these terms-such as ore, exploration, development, production, reserves, proven ore, probable ore, possible reserves, resources, as well as similar terms applying to coal-are continually on the lips of anyone who reports on the economic aspects of a mineral deposit at the exploration, development, and production stages. The meaning of these terms is even more important in feasibility studies to determine whether a deposit should be put into production. Finally, careless use of these terms in reports published for public financing may, and sometimes does, lead to prosecution of the writer for misleading information.

Jan 7, 1975