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

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

Jan 7, 1982

By Richard L. Stein

INTRODUCTION Increasing a miner's chance of surviving a disaster requires advance planning for emergencies, adequate training of personnel, and the provision of proper survival equipment. It is extremely important that fires and toxic gases be detected early, and that warning systems such as stench, audible and visual alarms, and communications systems be provided to allow timely escape. However, situations do occur where timely warning is not provided and immediate escape is not possible, regardless of the precautions that are taken. Under such circumstances, a combination of new per¬sonal protective devices and old techniques can provide protection that is adequate to save a miner's life. SELF-RESCUE EQUIPMENT Self-rescuers are devices which provide a short-term supply of respirable air under the potentially lethal con¬ditions following a mine disaster. Functioning either as filtration devices for the elimination of carbon monoxide (CO) or as oxygen supplies, self-rescuers allow an endangered miner a limited amount of time in which to effect an escape or reach a place of temporary safety. Carbon-Monoxide Self-Rescuers For almost 50 years, filtration self-rescuers have protected miners' lives following explosions or fires. Designed to eliminate carbon monoxide from inhaled air, the first of these devices was approved in the 1920s and has evolved into the two units that are approved today-the Mine Safety Appliance (MSA) W-65 and the Draeger 810. Both of these units rely on the cata¬lytic conversion of very toxic carbon monoxide to rela¬tively safe levels of carbon dioxide (CO,). As shown in Figs. 1 and 2, both of these filtration self-rescuers operate in the same manner. On inhalation, the mine air passes through both coarse and fine filters that remove the dust, preventing the dust from coating the chemical beds or entering the miner's mouth. The air then passes over a drying agent that removes water vapor; this is required to prevent the water vapor from poisoning the catalyst. Subsequently, the dried air passes over the Hopcalite catalyst, where carbon monoxide is converted to carbon dioxide. Then, the air passes through a heat exchanger that reduces the temperature of the inhaled air. Finally, the air is inhaled by the user. Air exhaled by the user passes through the heat ex¬changer and exits the device through an expiratory valve. Both units of this type are subject to certain limita¬tions: 1) The units do not protect the user against oxygen¬deficient air; when air is inhaled through this type of self-rescuer, the device only removes the carbon mon¬oxide. If the mine air contains less than 15% oxygen, anoxia is inevitable. Symptoms of anoxia include dizzi¬ness, shortness of breath, quickened pulse, and deeper and more rapid respiration while the victim is at rest. During heavy exertion such as would be expected dur¬ ing escape efforts, a 15% oxygen level can cause loss of consciousness. 2) The units do not protect against excessive levels of carbon dioxide. Available data on carbon monoxide and carbon dioxide concentrations following explosions or fires are limited, but there are indications that the carbon monoxide concentration can rise to 2% and the carbon dioxide concentration can reach 5 or 6% of the mine air (by volume). In some situations, the in¬haled air could contain up to 6 or 7% carbon dioxide. At a carbon dioxide concentration higher than 2%, breathing patterns can be affected adversely. At a con¬centration of 6 or 7%, the effects include severe respira¬tory distress, with unconsciousness resulting from exer¬tion such as that needed for escape activities. 3) The units do not protect against high inhalation temperatures. The catalytic oxidation of carbon mon¬oxide to carbon dioxide is an exothermic reaction that evolves a large amount of heat. As the carbon monoxide concentration increases, the temperature of the inhaled air also increases. Available data show that above 1.5% carbon monoxide, the air inhaled through some self¬rescuers can be as high as 90°C (194°F). At those

Jan 1, 1982

By Bernard L. Cohen

INTRODUCTION The most serious occupational radiation episode in U.S. history was the exposure of uranium miners to radon daughters in the 1945-1968 time period. Although the maximum permissible dose at that time was 12 WLM (working level months) per year, average exposures were several times that figure, and ten times higher exposures were not uncommon. Starting in the early 1960s, mounting epidemiological evidence appeared for an excess incidence of lung cancer among these miners; up to 1974, there was an excess of 134 cases (159 observed vs 25 expected) among the 4000 in the group under study (NAS-1980). When this excess became apparent, the Federal Government took jurisdiction, greatly tightened enforcement, and in 1969 lowered the maximum permissible exposure to 4 WLM per year. These standards were met largely by a great improvement in ventilation. As a result of these measures, average miner exposures were reduced 5-fold from 1965 to 1968 and by another factor of 3 by 1970. In 1978, the 4 WLM/year maximum permissible exposure was exceeded by only 37 of 7500 underground miners, for only 16 wars it exceeded by more than 25%, and for only 8 was it exceeded by 502 (AIF-1980). The average exposures to the various groups are listed in Table 1. We see that the average exposure for all miners was 1.03 WLM, and for those who worked essentially full time underground it was 1.45 WLM. For purpose of later discussion, it will be convenient to choose a single value for average exposures. In view of the fact that employment situations and job categories are bound to vary over a lifetime of work, we take this to be 1.3 WLM/year. The purpose of this paper is not to dwell on history, but rather to address the question of whether or not this present situation is satisfactory. This question was considered recently by a study group under the auspices of National Institue of Occupational Safety and Health (NIOSH-1980) and it answered the question in the negative, concluding that the maximum permissible exposure should be substantially reduced. However, their arguments were incomplete and were lacking in perspective. The principal thrust of this paper is to provide some of the material overlooked. RISK TO URANIUM MINERS FROM RADON EXPOSURE In order to quantify the risk to uranium miners under present working conditions, it is first necessary to estimate the risk of lung cancer per WLM of exposure. The most straightforward way of doing this is to use the data on the group of uranium miners under study. These are listed in Table 2 for 8 exposure ranges and for the total group (NAS-1980). If all data are given equal weight, the risk is seen to be 3.5 x 10-6 per year per WLM. Much can be said in favor of using this value for the risk as dose independent; it is within one standard deviation (SD) of the observations in 5 of the 8 dose categories (as expected from the definition of SD), and within 2 SD for all 8, and for the three cases differing from the mean by more than one SD, two are above and one is below. However, the uranium miner exposures in the present situation will be far below those covered in Table 2, so it is worth considering the possibility that the risk differs from this at low doses. From the last column of Table 2 we see that the experience from all exposures below 600 WLM indicates a risk higher than the mean for the entire group by more than two standard deviations (the value 600 WLM in this comparison was deliberately chosen to maximize this deviation; for exposures below 360 WLM and 840 WLM, the excess is only 1.0 and 1.6 standard deviations respectively). In view of this tendency for the risk to be higher at lower dose, we will take the risk to be 5.0 x 10-6 per year per WLM in what we will refer to as model A. This risk estimate is based entirely on exposures much [higher] than those that will be experienced by

Jan 1, 1981

By J. Le Gac, P. Zettwoog, J. Brenot, J. W. Piechowski, J. C. Nenot

INTRODUCTION The components of the radiological hazard in uranium mines are: 1. exposure to radon and its short-lived daughters 2. exposure to long-lived ore dust 3. external irradiation With usual ventilation rates, the dosimetry relative to the first component only requires to know each miner&apos;s exposure to a potential energy of short-lived radon daughters, (EXP[a]). Presently in France, (EXP [a]) is determined monthly from radon concentration measurements. This is an indirect method based on ambient monitoring. After technical improvements achieved during the last years it is now possible to measure (EXP [a] directly with an individual portable monitor developed by the CEA. The purpose of this study is to analyze and compare monitoring results obtained by these methods. DETERMINATION OF INDIVIDUAL MONTHLY EXPOSURES TO[ a] POTENTIAL ENERGY OF SHORT-LIVED RADON DAUGHTERS [(EXP a) amb, by ambient monitoring] In this case, it is necessary to know individual monthly exposures to radon, (EXP Rn). As mentioned by Pradel, J.,et al., 1976, (EXP Rn) is estimated for each worker from informations both on radon concentrations (CRn) measured as described by Pradel, J., 1962 and times (t) elapsed in the various workplaces. (EXP Rn) is obtained by summing up the elementary radon exposures CRn x t relative to all the workplaces where the miner was successively engaged during the month. (EXP Rn) values are then corrected by an average equilibrium factor of 0.17 deduced from many measurements and taken as representative for all the French mines. Finally: [ ] (EXP [a])ind are obtained directly with an individual portable instrument described by Chapuis, A.M., et al., 1972. Samples of the air breathed by the miners are pumped continuously and radioactive aerosols containing the short-lived radon daughters are trapped on a filter. The principle of the measurement lies on track-etch detection of the a particles emitted by the deposited material. The technical aspects have been described by Duport, P., et al., 1980a, Mouden, A., et al., 1980 and Chapuis, A.M., 1980. As mentioned by Duport, P., et al., 1980, fiability is good. Indications on measurement reproducibility are given by Pradel, J., et al., 1977. PRESENTATION OF THE STUDY The underground miner population of a French mine was followed during a period of 8 months (October 1978 - May 1979). Monthly exposure values for each miner determined either by ambient or individual monitoring, (EXP [a])amb or (EXP[ a])ind, had been previously collected by Le Gac, J., 1980, who had also defined miner categories according to the characteristics of the work performed. Four groups are considered here, the "whole mine" and three categories as described in table 1. Data on the individual monthly exposures,(EXP [a])ind and (EXP [a])amb, were taken again to analyze the individual cumulative exposures instead of the "month by month" values. The influence of the mean habits of each individual on its surveillance results is thus taken into account. Each miner has a cumulative exposure as an individual of the "whole mine" and as an individual of each category in which he has worked. The results obtained by ambient or individual monitoring were analyzed (characteristics and adjustements of the distributions) and then compared (description of the discrepancies observed). Obviously, such a study is possible only if all the exposures are cumulated on a same duration. As miners have not worked during the same number of months in the course of the data collecting period, one must considerer the individual average monthly exposures, [(EXP a)]amb and[ (EXP a)]ind, instead of the individual cumulative exposures, which is typically the same thing. To be sure that the exposure values of a given group (A, B, C or D) are representative, only those miners really present for at least 3 months in this group were taken into account. Finally, each individual of the "whole mine" and of the various work categories has a pair of average monthly exposure values : [(EXP a)amb] determined by ambient monitoring and[ (EXP a)ind] deduced from the track-etch recording of the individual portable monitor. Let a miner be engaged during n months[ (3 < n < 8)] in a group, the following relations then apply : [ ]

Jan 1, 1981

By G. H. Khoe

addressed in a number of studies in the past. In this paper, the stability of a ferrous arsenate compound is evaluated using a solution model and the thermodynamic data which were determined for the system. The environmental stability of the ferrous arsenate precipitate is compared with the literature data for ferric arsenate and arsenate-bearing ferric hydrous oxide.

Jan 1, 1991

By Robert L. Sandefur

Geostatistics of coal thickness and quality parameters for various coal seams in the San Juan Basin of New Mexico are reviewed. Interpretation of the histograms, variograms, and drifts of the data in the context of depositional environment and post-depositional geological history is discussed. A multivariate geostatistical technique for checking the accuracy of seam correlations is demonstrated.

Jan 1, 1982

By D. Royston

A novel low-cost technology is described that treats excavation waters in estuarine environments where water coloration due to humic material is present, along with acidity, turbidity, sediment and salinity. The process treats all the components in the water to produce a clear (color-free) water stream that meets requirements for direct discharge to local estuarine waterways.

Jan 1, 2003

By T. N. Singh, M. M. Singh, R. B. Singh

Fly rock is common when blasting shallow holes and during secondary blasting. Although the required quantity of explosives for secondary blasts is less, noise and fly rock can have an enormous environmental impact. This paper mainly deals with field experiments on blast-design parameters and addresses some precautionary measures that can be taken when pop shooting.

Jan 1, 2000

By Xingshen Wang, Xuefeng Liu

This paper introduces the methods of adjustment over air pressure, air quantity and the method of comprehensive adjustment over air resistance during a mine ventilation survey. The method of selection of weight value for the adjustment is discussed. Finally a calculating method in regard to saving computer memory units and speeding up calculating process is described.

Jan 1, 1989

By K. T. Valsaraj, L. J. Thibodeaux

Solvent sublation, the separation process for the removal of two hydrophobic compounds (penta- and trichlorophenols) from the aqueous phase, is discussed, as is a steady-state mathematical model for fire process. Solvent Sublation "&apos;as conducted in a continuous countercurrent mode. The underlying mechanisms, theory and experimental details on the effects of process variables on removal efficiency are reported.

Jan 1, 1994

By K. R. Wood, P. M. Blythe, J. A. Finch, M. L. Lavallee

A new analytical approach for characterizing and improving the performance of ball milling is presented. Individual ball mill circuit design and operating variables can be related to overall circuit performance through two distinct parameters for classification and breakage. The ball mill circuit functional performance equation is presented. Applications in the industrial plant and in the research field are discussed.

Jan 1, 1991

By Y. H. Zhan

In beneficiation of phosphate ores it is common to use screening to produce the coarse "pebble" concentrate, and flotation to process the -1+0.1 mm size fraction. The -0.1 mm desliming product is treated as tailings. A new partially hydrophobic flocculant, P(MAAA) latex was developed to enhance flotation recovery of fine apatite particles through selective flocculation.

Jan 1, 2002

By Jürgen Lotze

Previously (1981), it was shown that the fiscal policy practised by some IBA-member countries is mainly responsible for a significant shift of known bauxite resources into higher processing-cost categories. The possible impact of politically imposed fiscal costs on the competitiveness of relevant bauxite resources is investigated in detail by means of a model calculation procedure.

Jan 1, 1984

By B. S. Hulvey

Thin support liners are becoming more accepted and being developed with improved properties because the mining industry as a whole has been offering underground safe test trial sites. This is because of the huge potential for such products. Recent developments tend to indicate that the technology is “coming of age” and these are discussed in this paper.

Jan 1, 2003

By M. Churchill, V. R. Degner

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

Jan 7, 1982

By T. B. Acton

There are two types of ore transportation systems in use at Newmont&apos;s Magma Copper Co. San Manuel mine in Arizona-rail-mounted, box-type rotary cars and the newer rail-mounted, bottom-dumping ASEA cars. Though the cost per car for the ASEA units greatly exceeds the cost per rotary car, the advantages of the ASEA units, including much faster dump times, have made the ASEA system a successful alternative at the San Manuel mine. The rotary system of ore transportation has been in use at San Manuel since production began in 1956. The system employs 7.9-m3 box-type cars to transport ore by rail to shaft pocket areas. A rotating dumping mechanism turns three cars at a time upside down to empty them, and returns them to an upright position. Trains of 15 cars each are dumped in about six minutes. Each 15-car train is pulled by an 18-t rated trolley locomotive. There are about 400 rotary cars in service at San Manuel and the system is used for the majority of ore haulage. This well-proven rotary method was instrumental in achieving the December 1977 world record of 272 Mt hoisted from an underground copper mine. Magma Copper Co. began using ASEA cars in late 1977. Designed by ASEA of Sweden, the cars are built for San Manuel by Kasper-Hall Manufacturing Co. in Tucson. The cars basic design feature is a hinged floor that opens at the side as the car is pulled through the dump. As it passes over the dump, a fifth wheel attached to the hinged floor (opposite the hinges) travels along a rail in the dump. This rail dips down into the pocket and then returns to track level. As the fifth wheel travels along the rail, the car floor opens, the car dumps, and the floor is then returned to track level. As the car is dumping, the body remains suspended over the pocket by wheel rollers attached to each side of the dump. Trains of 10 cars each are emptied in about 45-50 seconds. Each ASEA train is pulled by an 18-t rated trolley locomotive, adapted at San Manuel to allow it to pass through the ASEA dump. At minimal cost, "wings" are welded to each side of the locomotive. These wings suspend the locomotive over the pocket as the train passes through the dump. Advantages of the ASEA System Major design characteristics of the ASEA and rotary systems are shown in the accompanying table. The comparison points out some of the following advantages demonstrated by the ASEA system. • Faster dumping-An ASEA train dumps in 50 seconds, while a rotary train takes at least six minutes. There is no stopping or starting when dumping an ASEA train. The train enters the dump area, dumps, and leaves in one continuous motion-in contrast to rotary trains which must stop and start five times to dump. With the rotary system, three cars are spotted in the dump mechanism by remote control. When the cars are in place, the train operator activates the dump, the cars are turned over, and then returned to an upright position. This process is repeated until all 15 cars in the train are emptied.

Jan 4, 1980

By Lynton B. Manssen

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

Jan 6, 1983

By John W. Goth

This article, though not common feature material, should be of reader interest. Goth made this presentation as the keynote address at the 19th Annual Intermountain Minerals Conference in Vail, CO, in August. Introduction Working backward, what is an LDC? LDC stands for Less Developed Country. LDCs play a dynamic role in world supply and demand of basic materials. They occupy an equally important position in international marketing and finance. I will explain later some of my concerns with LDCs. First, I want to address an issue I think is of equal or even greater concern. Mining and High Technology Unfortunately, many people believe that America must make a decision now between being a smokestack-based economy or a high-technology-based economy. Some would have you believe that smokestack America is dead. Our only option is to turn to high technology, in a manner similar to countries such as Japan. Presumably, when we talk about high-technology industries we envision organizations that came into being within the last decade or so and incorporate microelectronics, biotechnology, and interconnected computers. The entire workforce is clad in lab coats and there are few employees in proportion to the work performed. High-technology industry is not labor-intensive work thanks to the efficient robots used. On the opposite side are smoke-stack industries, that we presume include the older, basic industries such as mining, agriculture, iron and steel manufacturing, ship-building, auto manufacturing, and nearly all forms of construction. These industries are judged to be labor intensive, requiring unsophisticated and untrained employees who succeed by the sweat of their brows rather than by advanced degrees in mathematics and physics. If these are indeed the presumptions about high technology versus smokestack industries, then I submit that those presumptions are a disaster. They are wrong and far from the truth. Smokestack industries, such as mining and the others mentioned, are indeed much older than some of the recently founded high-tech industries. But this does not mean that those smokestack industries are low-technology industries. On the contrary, American agricul¬ture is a very high-technology industry whose crop yields are the envy of the entire world. Mining uses virtually all of the advances available through modern technology. Far too many opinion leaders still envision mining as Humphrey Bogart and John Huston in the movie Treasure of the Sierra Madre. Yet there are many who hold the opinion that our basic industries are dead and that this country&apos;s future depends on specialized high-technology industries and services. That is tantamount to announcing we will continue to build space shuttle vehicles, but we no longer need launching pads and landing fields. The point is, we should not be wasting our time talking about "new" industries and "old" industries. We should devote our time and effort to industries that are effective and efficient in meeting our needs, in contrast to industries that are not effective and efficient in meeting our needs. Less Developed Countries That leads me to some of the problems I perceive with policies regarding the previously mentioned LDCs - Less Developed Countries. Far too many people do not realize that many of the smokestack industries being lauded in Less Developed Countries are being operated at a loss and to the detriment of worldwide industry. And the losses incurred

Jan 12, 1983

By Keith P. Bingham

A total transportation system providing for delivery of finished products to customers and raw materials to the plant is one of the key elements contributing to Dravo Lime Co.&apos;s success. Dravo Lime operates one of the largest noncaptive lime and limestone plants in the US at Maysville, KY, where products produced can cost as much to deliver as they do to manufacture, depending on the product itself, its destination, and mode of transportation. With delivery costs comprising a significant portion of total costs for its products, Dravo Lime has made total transportation services an integral part of its business strategy. Prices for most products produced at Maysville are quoted f.o.b. destination. In short, Dravo Lime&apos;s Distribution Department relies on the approach that says to customers: "Leave the delivery to us." The 0.9-Mt/a (1-million stpy) Maysville facility, located about 121 km (75 miles) east of Cincinnati, OH, on the Ohio River, primarily produces sulfur-absorbing Thiosorbic lime used by coal-fired electric utilities as a scrubber reagent to remove SO2 from stack gases. The product is currently supplied to eight power plants in the Ohio River valley region which extends through portions of Kentucky, Indiana, Ohio, West Virginia, and Pennsylvania. The plant ships approximately 907 kt (1 million st) of lime and a comparable amount of limestone fines each year. In addition, it arranges for delivery of about 181 kt (200,000 st) of coal to the plant. Lime is transported by covered hopper barges, covered rail cars, covered dump trucks, and pneumatic trucks. It is transferred from barges to storage silos and trucks at a terminal on the Ohio River near Marietta, OH. At another terminal near Aliquippa, PA, lime is transferred from barges to silos, trucks, and rail cars. Future plans call for rail-truck transfer terminals. To produce lime from limestone at the Maysville plant, about 181 kt (200,000 st) of coal is burned annually in three coal-fired kilns. In transporting this coal from the mine to Maysville, Dravo takes maximum advantage of opportunities for reloading carriers with limestone for outbound backhaul movement. Coal, shipped from southeastern Kentucky mines in rail cars, is transferred to barges at a river terminal in West Virginia. After it is unloaded at Maysville, the barges are cleaned with a front-end loader and then reloaded with limestone. Limestone also is backhauled in connection with truck deliveries of coal. The economics of using backhaul shipments has permitted Dravo to enter into markets in which Maysville limestone otherwise would not be competitive. The company plans to backhaul limestone in empty open hopper cars in the future. As part of its ongoing assessment of the distribution system that supports the Maysville operation, Dravo Lime recognizes that a new environment has developed between shippers and carriers because of regulatory changes in the railroad and trucking industries. Although dry bulk shipments by barge to and from Maysville have always been unregulated, other forms of transportation have not. With railroads and motor carriers now approaching varying degrees of deregulation, contracts and agreements are replacing tariffs, and rate negotiations are becoming a daily activity. Dravo Lime plans to take advantage of these transportation changes, all of which may be beneficial to both its plant and its customers.

Jan 10, 1982

By D. M. Bodily, V. J. Hucka

INTRODUCTION Interest in the recovery of methane from coalbeds has increased rapidly over recent years, because of its potential as an energy resource and to alleviate pollution and safety problems. The resource base of coalbed methane in the United States has been estimated at 11.2 Gm3, roughly equivalent to 20 years consumption (Mroz et al., 1983; Kuuskraa and Brandenburg, 1989). Methane contributes to the adverse environmental impacts of global warming, tropospheric ozone formation (smog), and potentially stratospheric ozone destruction. Association of methane with coal has always presented a safety problem in mines due to the potential for explosions. The rate of release of methane depends on the amount adsorbed by the coal, the adsorption isotherm for the coal, and the size of the coal particles. Mining operations can affect the particle size distribution and the production of fines and therefore the rate of release. The time the mined coal remains in the mine may also be important in determining total emissions. The methane content of some Utah coals was determined in this study. The methane content of the coals is compared with the chemical and physical properties of the coals and the properties of the seam and neighboring strata. Correlations are developed to better understand the formation and retention of methane by these coal seams. METHANE FORMATION IN COALBEDS Three mechanisms for methane formation may be considered: (1) nonbiogenic formation, (2) formation by anaerobic bacteria during plant material deposition and the early stages of diagenesis, and (3) formation from pyrolysis of coal material during coal maturation. Nonbiogenic formation by thermal processes involving carbon- and hydrogen-containing compounds has been proposed as a mechanism for methane formation in the earth. It is not likely to be of importance where other fossil fuel materials are present. Coal would not survive the temperatures required and hence the methane would need to migrate and be trapped by the coal seam. This mechanism is unlikely for coalbed methane. Formation of methane by anaerobic bacteria undoubtedly occurs during coalification, but the methane may not be trapped until the pore system of the coal is developed, and would likely be displaced by methane formed during further coalification. Methane formed by maturation of the coal material as it progresses from peat to coals of various rank is the most probable mechanism for the formation of coalbed methane. Most of the methane is adsorbed onto the walls of microvoids in coal. It has been estimated that the surface area of one kilogram of coal is between 20,000 m2 to 200,000 m2. Surface area measurements depend on the coal and also on the method of measurement. At 20 atmospheres, in some coals, the adsorbed methane is 10 times greater than methane as a free gas. At 100 atmospheres the adsorbed gas can be as densely packed as a liquid. The volume of methane gas held in coal depends on the volume of gas that exists as a free gas and the adsorbed gas capacity. The volume of free gas in the coal can be calculated from the kinetic theory of gases (methane can be assumed to be an ideal gas because errors would not be greater than 1 % for normal mining pressures). Langmuir (1916) derived an equation for the adsorption of gases on uniform surfaces and this is applied to the adsorption of methane on coal:

Jan 1, 1993