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By J. W. Halley

RIMMING steels derive their name from their action during solidifica-tion in the molds. As a result of incomplete deoxidation, gas is evolved during freezing, and the metal has a characteristic rolling action. The metal rises along the mold walls and descends in the center of the ingot. This action keeps the top of the ingot open and the advancing rim of solid metal can be seen. The rim grows until the rolling action is insufficient to prevent the top of the ingot from freezing or until the action is stopped by capping the ingot with a heavy plate. The violence of the reaction and its characteristics, such as growth or drop ill the molds, are deter-mined by the Composition, the furnace practice, and the deoxidation in the ladle and in the molds. Though rimming steels represent a large proportion of the amount of plain carbon steel made, they have received comparatively little attention in the technical literature. The manufacture of rimming steels has been described by Hibbard,1,2 Fleming,3 Pierce4 and Jackson.5 The reactions occurring during rimming have been considered from the theoretical point of view by Chipman and Samarin.7 The structure of rimmed-steel ingots has been discussed by Nead and one of the present authors.6 Meyer,8 in studying segregation, investigated the distribution of carbon, sulphur and phosphorus in rimmed-steel ingots by analyzing the rim and core of blooms. In their studies of segregation, the Joint Committee of the Iron and Steel Institute and the British Iron and Steel Federations studied distribution in one billet and one ingot of rimmed steel. A detailed study of the distribution throughout the ingot has not been published. The present investigation was undertaken to determine accu-rately the distribution of carbon, manganese and sulphur in normal rimmed ingots and the general distribution of other common elements present. The study included some work on the effect of pouring condi-tions and furnace practice on the distribution, though there is still much to be done in this direction.

Jan 1, 1938

By S. LeFevre

, The solution of the housing and sanitation problem in mining communities, keeping in view both economic and humanitarian aspects, demands the best thought of the management of such enterprises. Upon the solution depend the health and comfort of the employee and his family, and as a consequence his contentment and efficiency. The following description covcrs briefly the methods installed for Witherbee, Sherman & Co. The operation of the system has been for about two years under the direct supervision of T. A. Hammond, Land Agent, and I am indebted to him for a compilation of the results. Sanitation The sanitary service covers 238 tenements. The installation cost was about $22 per tenement, as follows: Privy, $15; privy box, $3; proportion of incinerator cost, $2; garbage can, $2. The operating cost is $1 per month for each tenement. In considering the installation of an ordinary village system of water supply and sewerage two difficulties were encountered: First, lack of a sufficient quantity of water; there is no stream large enough, as Mineville is situated very close to the divide between the Lake Champlain and Hudson River watersheds. A storage reservoir was tried, but the only location available, among glacial hills, would not hold water. Second, the expense of digging ditches for the distribution of water and sewer pipes is so great as to be prohibitive; Mineville is built chiefly in a valley covered in the bottom with drift, in this case a combination of boulders and hard pan. Digging in this material costs 80c. to $1 per cubic yard, and pipes must be placed 41/2 ft. down to be below frost. The houses are scattered along 4 miles of streets, the oldest having been built in the original forest 65 years ago. The newer houses have gone up a few at a time wherevcr a clear space could be found and the slopes were not too steep. This has advantages, as it separates the dwellings into

Jan 1, 1915

By H. M. Chance

The present value of most coal properties resides largely in the cod remaining to be mined, which thus constitutes the most important asset. The object of this paper is to discuss methods commonly used in computing the value of minable coal. To distinguish clearly between such coal values and the values of other property, the several kinds of property values should be divided into classes; so as to avoid the unintentional omission of items of importance. Value op Coal Reserves Judicial decisions prescribe, and appraisers commonly accept, current sales value as the preferred means for determining the value of transferable property. With few exceptions a property is worth the sum that can be realized from its sale by a willing seller to a willing buyer, a sale in which compulsion urges neither party, and between whom there is no community of interest to fix a value; or it is worth at least as much as a responsible buyer will offer for it. Actual sales of like property or bids from responsible buyers for the property, or for substantially like property, are the best established methods for determining values. Only in the absence of such sales or bids can valuations by other methods be entertained, and only for reasons of weight can sales values be set aside. Valuation Based on Royalties Sales of coal in the ground, as customarily carried out through lease under royalty agreements, are therefore the most trustworthy means available for determining the value of coal reserves. The constantly rising value of high-grade coal in the United States can most readily be shown by the increasing royalties per ton that can be obtained for such coals under leasehold. The rising value of land containing such coal can also, of course, be proven by the price at which such properties are actually sold as compared with prices obtainable for lands containing coal of the same grade in the past. It is exceedingly difficult, however, to establish values by the prices paid for coal

Jan 1, 1927

By R. J. Schilthuis

In 1929, Coleman, Wilde, and Moore1 undertook an investigation of the theoretical decline in reservoir pressure as related to the production of oil and gas. The most important part of this work was presented in an equation defining the relationship between the reservoir pressure, the quantities of oil and gas produced, the oil and gas content of the reservoir, and the properties of the reservoir fluids. With this equation, it appeared that, with sufficient data, it would be possible to calculate the oil content of the reservoir and predict quantitatively the effect of gas-oil ratio on the decline of reservoir pressure. Needless to say, such an expression would be highly important in evaluating fields and in arriving at a choice of production methods to be used. Unfortunately, at the time these investigators published their work, there were not sufficient data available to permit application of the equation. The technique of measuring reservoir pressures had not been developed, gas measurements were uncommon, oil and water production records were in most cases inadequate, and little was known of the properties of the complex hydrocarbon mixtures making up the oil and gas in the reservoirs. For these reasons, little additional work of a similar nature could be done. However, during the past four years many data have been systematically accumulated on reservoir pressures and the properties of oil and gas, and it is now possible to use these data in furthering the studies on the behavior of oil and gas reservoirs. It is the purpose here: first, to present the derivation of a modified form of the equation given by Coleman, Wilde and Moore, which will permit the calculation of what later will be defined as the "active oil" content of a reservoir; second, to derive formulas for calculating the reservoir-energy changes that occur during the course of production, and finally, to discuss the limitations and application of the equations developed.

Jan 1, 1936

By R. J. Schilthuis

In 1929, Coleman, Wilde, and Moore1 undertook an investigation of the theoretical decline in reservoir pressure as related to the production of oil and gas. The most important part of this work was presented in an equation defining the relationship between the reservoir pressure, the quantities of oil and gas produced, the oil and gas content of the reservoir, and the properties of the reservoir fluids. With this equation, it appeared that, with sufficient data, it would be possible to calculate the oil content of the reservoir and predict quantitatively the effect of gas-oil ratio on the decline of reservoir pressure. Needless to say, such an expression would be highly important in evaluating fields and in arriving at a choice of production methods to be used. Unfortunately, at the time these investigators published their work, there were not sufficient data available to permit application of the equation. The technique of measuring reservoir pressures had not been developed, gas measurements were uncommon, oil and water production records were in most cases inadequate, and little was known of the properties of the complex hydrocarbon mixtures making up the oil and gas in the reservoirs. For these reasons, little additional work of a similar nature could be done. However, during the past four years many data have been systematically accumulated on reservoir pressures and the properties of oil and gas, and it is now possible to use these data in furthering the studies on the behavior of oil and gas reservoirs. It is the purpose here: first, to present the derivation of a modified form of the equation given by Coleman, Wilde and Moore, which will permit the calculation of what later will be defined as the "active oil" content of a reservoir; second, to derive formulas for calculating the reservoir-energy changes that occur during the course of production, and finally, to discuss the limitations and application of the equations developed.

Jan 1, 1936

By Richard L. Gordon

Minerals long have been important commodities in international trade. As an inevitable result, the governments of the world have employed a wide variety of programs that affect the flow of trade. Roughly speaking, we may distinguish between the desire of more developed countries (MDCs) like the United States, western Europe, and Japan to control imports of minerals and the concern of less developed countries (LDCs), like India, about exploiting and exporting their minerals. The terminology used to describe different countries and the classification of specific countries into groups is unsettled and often changing. The poorest countries have been characterized as backward, undeveloped, underdeveloped, and developing. The problem seems to be in selecting a term that is both accurate and polite. Less developed seems, for reasons outlined by Hagen [pp. 51-57], the most convenient term. The borderline between an LDC and an MDC is always open to dispute. Objective measures are difficult to develop because of deficiencies in basic data, and enormous conceptual problems arise in making valid comparisons from even good data [see Hagen, pp. 7-28]. Thus, policies of the MDCs can be evaluated chiefly by using a few basic arguments for protectionist attitudes towards international trade. In dealing with the LDCs, a more far-ranging evaluation that covers general economic policy goals, the role of foreign investment, and the indirect effects of trade is required. This duality breaks down when trying to deal with the depressed areas in an MDC; here the issues are more akin to those associated with problems in an LDC. Similarly, variants of arguments used in LDCs appear in debates about foreign investments in MDCs. The whole discussion of minerals in LDCs, moreover, has obvious implications for MDCs like Canada and Australia. They, too, must face problems about the best utilization of their resources. THE RESTRICTION OF MINERAL TRADE BY DEVELOPED COUNTRIES[a] At least to some extent, the world's leading industrial nations have intervened to control the inflow of minerals. Such regulation is particularly pronounced for energy. Both the United States and western Europe employ

Jan 1, 1976

By L. T. Leyson, U. C. Tainton

Some time ago, at ameeting of the Institute Prof. J. W. Richards1 said, "I take exception to the statement that all the factors in the production of electrolytic zinc were known long ago.... There is possible in my opinion an improvement of perhaps 50 per cent. in the new electrolytic processes." An examination of the literature of the subject will show the justness of Professor Richards' contention. The work of the earlier investigators was carried on in the shadow of difficulties that, today, are hardly more than memories. We seldom hear now of zinc sponge, that bête noir of the electrolytic-zinc pioneers. Zinc sponge was the name given to a peculiar, soft, black, non-adherent form of zinc deposit that was utterly useless for melting into ingot form. At the big plant at Cockle Creek, New South Wales, in 1897, Edgar Ashcroft2 said that the solution in the plant would suddenly, and without ascertainable cause, go' "bad" and begin to deposit spongy zinc. The most delicate, even spectroscopic, methods of analysis were unable to detect any difference between "good" solution and "bad" solution; either form might change to the other on being kept for a while. When it is added that an outbreak of this insidious disease (which appeared to be infectious, or at least contagious) could be dealt with only by discarding the solution and washing out all tanks and pipe lines, some idea may be gathered of the troubles of the zinc electrometallurgist in what may be spoken of as the "sponge age" of electrolytic zinc. Thanks to the efforts of a number of investigators, we are today able to diagnose with considerable certitude the nature of the malady that puzzled Ashcroft and his co-workers. The researches of Mylius and

Jan 1, 1924

By A. S. Richardson

VENTILATION of the Butte mines has long been a rather difficult problem because of the natural high temperature of the rock. With increase in mining depth, higher rock temperatures have been encountered, and this has caused a constantly growing demand for more effective ventilation measures. During recent years the hazards of dust in mine air have been more clearly recognized, and have necessitated the adoption of dust-prevention methods. To meet these ventilation problems in the mines of the Anaconda Copper Mining Co., a mines ventilation department was organized in 1918, to act under the direction of the general superintendent of mines. At the present time, under normal operating conditions, the force employed includes the ventilation engineer, two chief assistant ventilation engineers and eight assistant ventilation engineers. The activities of the department are, briefly: (1) planning and supervising operation of the general ventilation system; (2) planning and supervising the operation of dust-prevention measures, together with dust sampling and related microscopic work for the quantitation of the dust samples and determination of particle-size distribution; (3) the design and development of air- conditioning methods to meet present exceptionally severe temperature conditions and in anticipation of future requirements. To a large extent the technical features of the ventilation methods have been described in earlier papers by the author. This paper is written mainly to summarize past accomplishments bearing most closely on health and safety, with a somewhat more detailed account of the dust- prevention measures that have been developed comparatively recently. FACILITATING FLOW OF AIR As a basic requirement for the safety of the men, all ventilation plans are subject to a ruling that the main operating shafts must be maintained as inlet air courses. Under this condition, a safe, fresh-air escapeway is assured if a fire occurs within the mine, and the shaft is available as a base for fire-fighting operations. Control of the direction of air flow is

Jan 1, 1938

By Gerald V. Jergensen

Does an idea have merit? What does it cost to implement? Can the concept be implemented successfully? The ultimate proof is to try, then see. However, when there are many millions of dollars at stake, blindly building and trying requires considerable courage. Owners and investors in retrospect might choose other less complimentary words. So we might ask, "How might we establish the feasibility of an idea or concept before committing large sums of money to the ultimate test?" From this basic and prudent question, has evolved the engineering concept of the feasibility study. A feasibility study is simply a systematic evaluation of an idea or concept to determine the prospects for success. In a literal sense, a feasibility study considers an idea in terms of its data base, "builds" the idea on paper, "operates" that idea, calculates the cost and benefits, then measures the probable success in terms of some economic, technical or financial standard. Feasibility studies can be quite modest in scope yet provide useful insights as to the viability of an idea. A study might be initiated only to examine the completeness or validity of the metallurgical data base. Another study could be a search for a workable idea or solution to an already-identified possibly troublesome problem. In this latter case, the question, "Will it work?" may be far more important than, "How much will it cost?" Feasibility studies are sometimes global in scope, involving several dozens of specialists and examining an entire "grass roots" mining complex. Other studies may be less ambitious but equally important in examining an expansion proposal or developing new operating techniques. Studies may be commissioned to remove plant bottle-necks, solve maintenance problems and so on. The terms study and feasibility study are used interchangeably in this chapter. They denote a systematic method to examine a proposed concept or idea. DATA BASE Typically, studies are initiated with a minimum amount of specific information and a maximum number of assumptions. As the work proceeds and the data base expands, assumptions are replaced

Jan 1, 1982

By John Garcia

THE presence of carbon de terre along the banks of the Illinois river was noted by the members of the Joliet and Marquette expeditions in 1673, and that may be referred to as the birthday of coal in the Middle West. The march of progress in the majority of indus-tries radiating from Chicago-one of the phenomena of history-is due in no small measure to this same carbon de terre and to the development and exploita-tion of the vast coal resources, which nature in a generous mood spread so lavishly over almost the en-tire state. The geological records indicate that coal-bearing rocks underlie three-quarters of Illinois, in-cluding 85 of the 102 counties and the entire area is estimated at from 36,000 to 42,000 square miles. Not all of the coal in this great area may be mined under the conditions existing today; producers are now taking the "cream" since industry demands the best quality and the lowest cost, thereby forcing competition among operators, which, in turn, com-pels the development of mines in those areas where the coal may be most readily .won, leaving the coal that is more difficult and expensive to mine to pos-terity. This is not such a bad arrangement, since the engineers of succeeding generations will enjoy the advantage of the experience of their ancestors, where-by they should profit and know how to mine a 2-ft. seam with as much economy and dispatch as we today work coal of thrice that thickness. During the period between 1830 and 1850, Illinois coal-mining progressed from the art of scratching along the outcrop to the development of small mines, mostly slopes, drifts and shallow shafts, but the real progress in the industry was coincident with the con-struction of railroads.

Jan 2, 1927

By A. F. Taggart

THE following notes represent significant excerpts from a mass of records of experimental work done in the ore-dressing laboratory at the Columbia School of Mines during the years 1926 to 1928-inclusive. CLASSIFICATION OF EXPERIMENTAL WORK The experiments performed may be grouped for purposes of description under the following general -headings: I. Collecting agents. a. A method for quantifying collecting effect. b. Coating with undissolved collecting agents (oils) c. Action of dissolved collecting agents. II. Frothing agents. a. A method for quantifying frothing effect. b. Relation between frothing effect and chemical composition. III. Inorganic reagents. a. Methods of studying the effects of these reagents. b. Effect on slime dispersion. c. Effect on sulfides. SUMMARY OF THE ORIGINS OF PRESENT-DAY FLOTATION PRACTICE The first practicable, foolproof method of froth flotation was described in U. S. patent 835120, issued in 1906 to Sulman, Picard and Ballot, and in the equivalent patents in other countries. A number of less simple methods of producing the same result had been described previously in patent publications and otherwise.1 The reagents specified in all of these early patents were "oils" and, in addition, some inorganic substance, usually an acid. The quantities of reagents recommended and added were enormous when' compared with those used today.

Jan 1, 1929

W. S. GRESLEY, Erie, Pa. (communication to the Secretary): A six-entry method of opening coal-mines is, or was a short time ago, practiced in the Connellsville coal-region; but Dr. Chance's method has a novel aspect; for while in the Connellsville region the main pillars are formed outside of two pairs

Jan 1, 1901

By F. E. Bash

Previous to the war, this country depended on Europe for its supply of a number of alloys of great importance in the manufacture of electrical apparatus and equipment. When this source was cut off shortly after the beginning of hostilities and the small stocks in the United States were exhausted, either inferior substitutes had to be used or the manufacture of the apparatus suspended. Since electrical equipment was of primary importance in the prosecution of the war, the substitutes had to be used until the composition and processes of manufacture of the alloys could be determined. Included among these alloys was one generally known as manganin, which is composed chiefly of copper and manganese and which, beside having a low-temperature coefficient of resistance, has a low thermal electromotive force against copper. These qualities make it valuable for the manufacture of electrical instruments and machines in which it is used in the shape of wire, rod, and strip. As a result of these circumstances, an investigation was started to determine how manganin could be made on a commercial basis so that a product of uniform quality and the necessary electrical characteristics could be produced. The object was to procure an alloy with temperature coefficient of resistance not greater than 1 X 1X per " C. and a thermal e.m.f. against copper no greater than that of the imported material. It is characteristic of manganin that the temperature-resistance curve is not a straight line but has a peak, which varies in position with different samples; it is most desirable, however, to have it at a temperature of 25' C. if possible. The coefficients of manganin from all records available ranged from a large negative to a large positive value. The composition as reported by different authorities is given in Table I. Prof. Matthew A. Hunter, of Rensselaer Polytechnic Institute, made up a number of small melts of manganin in a graphite crucible and the one that he reported as having the best cocfficient gave the following analysis: Copper, 83.6 per cent.; nickel 2.5 per cent.; manganese, 13.6 per cent.; iron, 0.3 per cent. An analysis of a sample of German manganin gave the following: Copper, 82.6 per cent.; nickel, 3.8 pcr cent.; manganese, 12.8 per cent.; iron 0.7 per cent.

Jan 1, 1921

By Klaus W. John

The geologic factor of greatest significance in rock mechanics and rock engineering is considered to be the geologic structure represented by joints, faults, and other planes of weakness. This geologic structure differentiates between the rock element and the rock system composed of these elements. Only during the last decade has the difference of the technological properties of element and system been recognized but this appears to be more in theory than in engineering practice. If rock mechanics is to achieve real significance in engineering practice, it has to provide methods of analysis which are realistic compromises between the best representation of the actual conditions and pragmatic engineering. The rock mechanics practitioner has to face the fact that many geological engineering and rock mechanics problems may be too complex to allow rigorous analysis but at the same time are deemed satisfactory for the construction of major structures. Ultimately, the geotechnical engineer or the engineering geologist has to express the effect of geologic factors in quantitative, even if approximate, terms and provide numerical data on strength and deformability of rock systems to be utilized in construction. Qualitative evaluations, quantitative descriptions of geologic features as such, and comparisons of specific test results are always of interest but may not suffice as basis for engineering decisions and designs. The present efforts of the rock mechanics group at the Karlsruhe University, Federal Republic of Germany, are based on a systematic combination of geomechanical models and numerical analyses based on the finite element approach. This group considers that at the present stage

Jan 1, 1970

By F. M. Lewis, J. F. Meyers

In the mining and handling of sulphide ores, some degree of oxidation takes place on the sulphide surfaces, which are exposed to the atmosphere. It is, moreover, well known that the oxidation compounds formed are a factor when such ores are subsequently treated by flotation. Modern operating technique and reagents are capable of contending with this condition to a major degree, provided that the proportions of the reagents used are varied correctly. This is particularly true at the Tennessee Copper Co., where the ore treated contains pyrrhotite in addition to other sulphides. A number of soluble salts, some of which are unstable, can be formed during the oxidation of the sulphide ores. Those unstable salts, whose oxygen requirements are unsatisfied, are constantly changing to more stable forms because oxygen reacts with them during the crushing, grinding and other operations of ore preparation. We add no chemicals of any kid to the ore pulp in its preparation for flotation feed. Consequently the only compounds that are present in the flotation feed are those produced by the natural oxidation of the ore in the presence of air and water. The Tennessee Copper Co. ore is composed of from 60 to 70 per cent sulphides and from 40 to 30 per cent non-sulphide material. It is not the purpose of this paper to discuss the nature of these various oxygen-sulphur compounds nor their effect on flotation, but to describe a method for correcting the effect. Suffice it to say that we have found that the reducing sulphur and oxygen salts have a depressing action on our bulk flotation process.' From long experience we find that the best means of correcting for this variation in our work is to increase or decrease the quantity of xanthate, the promoting agent, as the quantity of the reducing salts increases or decreases. It was, therefore, very desirable to provide the operators with some quick and

Jan 1, 1947

By J. F. Myers, F. M. Lewis

IN the mining and handling of sulphide ores, some degree of oxidation takes place on the sulphide surfaces, which are exposed to the atmosphere. It is, moreover, well known that the oxidation compounds formed are a factor when such ores are subsequently treated by flotation. Modern operating technique and reagents are capable of contending with this condition to a major degree, provided that the proportions of the reagents used are varied correctly. This is particularly true at the Tennessee Copper Co., where the ore treated contains pyrrhotite in addition to other sulphides. A number of soluble salts, some of which are unstable, can be formed during the oxidation of the sulphide ores. Those unstable salts, whose oxygen requirements are unsatisfied, are constantly changing to more stable forms because oxygen reacts with them during the crushing, grinding and other operations of ore preparation. We add no chemicals of any kind to the ore pulp in its preparation for flotation feed. Consequently the only compounds that are present in the flotation feed are those produced by the natural oxidation of the ore in the presence of air and water. The Tennessee Copper Co. ore is composed of from 60 to 70 per cent sulphides and from 40 to 30 per cent nonsulphide material. It is not the purpose of this paper to discuss the nature of these various oxygensulphur compounds nor their effect on flotation, but to describe a method for [ ] correcting the effect. Suffice it to say that we have found that the reducing sulphur and oxygen salts have a depressing action on our bulk flotation process.1 From long experience we find that the best means of correcting for this variation in our work is to increase or decrease the quantity of xanthate, the promoting agent, as the quantity of the reducing salts increases or decreases. It was, therefore, very desirable to provide the operators with some quick and

Jan 1, 1946

By F. M. Lewis, J. F. Meyers

In the mining and handling of sulphide ores, some degree of oxidation takes place on the sulphide surfaces, which are exposed to the atmosphere. It is, moreover, well known that the oxidation compounds formed are a factor when such ores are subsequently treated by flotation. Modern operating technique and reagents are capable of contending with this condition to a major degree, provided that the proportions of the reagents used are varied correctly. This is particularly true at the Tennessee Copper Co., where the ore treated contains pyrrhotite in addition to other sulphides. A number of soluble salts, some of which are unstable, can be formed during the oxidation of the sulphide ores. Those unstable salts, whose oxygen requirements are unsatisfied, are constantly changing to more stable forms because oxygen reacts with them during the crushing, grinding and other operations of ore preparation. We add no chemicals of any kid to the ore pulp in its preparation for flotation feed. Consequently the only compounds that are present in the flotation feed are those produced by the natural oxidation of the ore in the presence of air and water. The Tennessee Copper Co. ore is composed of from 60 to 70 per cent sulphides and from 40 to 30 per cent non-sulphide material. It is not the purpose of this paper to discuss the nature of these various oxygen-sulphur compounds nor their effect on flotation, but to describe a method for correcting the effect. Suffice it to say that we have found that the reducing sulphur and oxygen salts have a depressing action on our bulk flotation process.' From long experience we find that the best means of correcting for this variation in our work is to increase or decrease the quantity of xanthate, the promoting agent, as the quantity of the reducing salts increases or decreases. It was, therefore, very desirable to provide the operators with some quick and

Jan 1, 1947

By Rodney P. Smith

The solubility of niobium carbide in y iron has been determined for the temperature range 1000" to 1300°C from the carbon content of a series of Fe-Nb alloys equilibrated with hydrogen-methane mixtures. The method is similar to that used by Darken, Smith, and Filer 1 to determine the solubility of aluminum nitride in y iron and by smith2 to determine the solubility of niobium nitride in y iron. The samples* were strips 1.2 by 3 by 0.035 cm. The niobium oxide.* For samples of composition slightly

Jan 1, 1967

By John D. Siddle

Efficient energy utilization in the electrolytic zinc process, relative to other zinc processes, is one of the reasons for its wide adoption in recent years. Designers and operators of electrolytic zinc plants have pioneered process improvements, new equipment, and operating techniques to conserve energy. As energy costs advance still higher in the future, and competitive pressure against the less efficient producers increases, these or alternative energy-saving methods will be looked upon as a necessity for economic survival. Estimated energy savings which may be achieved by various equipment and techniques are included.

Jan 1, 1977

By Leons Kovisars

Introduction Competitive analysis is the collection and evaluation of data on a product, a product line or on an entire industry. Much of the focus of competitive analysis centers on production volume and the price targets of the competitors. In actual practice capacity may be used in place of production volume. Similarly, unit production costs and individual producing units - mines, mills, smelters, refineries - may be the targets of the analysis. The purpose of competitive analysis is to provide information for strategic planning. The analysis will locate the position of the company in the industry and define the competitive margin -- or lack of a margin - between the company and other producers. The analysis can show the current situation and may be expanded to examine the outlook for the future. The forecast option is particularly valuable because it will show the opportunities for new project development or the expansion of current production. Similarly, the forecast will show the potential threat from new entrants, and may provide early warning to reconsider operations that may become uncompetitive in the future. Production cost analysis is a clearly understood means to evaluate producers and estimate the outlook for their profitability. The cumulative cost for the industry outlines the supply structure and defines the marginal cost of production used in developing price forecast as explained in the sub- sequent section of this paper. Competitive analysis is particularly important to the mining industry, notably to metal producers. The final product is typically a purified metal conforming to standards, and interchangable with the output of other producers, i.e. a fungible commodity. Brand loyalty is questionable in the mineral industry. Consumers will show a preference for specific brands, but this preference will be limited to a premium of several percent over the general market price. Price and assurance of supply are the keys to marketing success. Assurance of supply depends on geopolitical considerations and production capabilities. Price will be closely related to cost of production and a thorough competitive analysis should describe the cost structure of the industry. This snapshot will locate one's own position and provide an immediate and readily understandable evaluation of the hazards and opportunities inherent in this position. In the following section we shall discuss elements, methods and sources for competitive evaluation. ELEMENTS OF COMPETITIVE ANALYSIS The practice of systematic collection and analysis of data on competition is hardly a new concept; see, for example, Wall (1) or Porter (2). However, most discussions have been in the context of conventional industrial or manufacturing industries, with a focus on product lines and brand marketing. These considerations are not irrelevant to mining but they do have only a limited application. The key to success in the mining industry is minimizing the cost of production. However, this simple concept becomes complex when we consider relevant costs and the planning horizon. Production costs include the factors consumed in production, namely labor, fuel, energy, materials and supplies. The cost also includes purchased and contracted services such as freight, smelting and refining, sampling and sales required to convert ore to the finished metal. Royalties and ad valorem taxes paid on gross production are direct expenses, as is the cost of administration required by the production units. The sum of these outflows is the total cash cost, the expense that has to be paid in cash in order to continue production. Indirect costs incurred by a producer will commonly include allocated headquarters expenses, as well as the capital charges associated with equity investment and debt. Profit is not generally considered an indirect cost even though it represents the cost of using the owner's capital; similarly, income taxes represent the government's participation in the profits of the enterprise. Interest payments are considered as a direct expense in some cost studies, but many competitive evaluations would consider

Jan 1, 1985