Search Documents

By Carmine Nappi

This article examines some important trends in East-West trade in non-fuel mineral products, in particular the recent decline in Eastern bloc exports of such products. It relates this decline to an improvement in Soviet terms of trade; a deterioration of geological and locational conditions in Soviet mineral production; an increased integration of the CMEA-countries based on a regional pooling of resources; and a surge in demand for mineral commodities in Eastern countries coupled with a slowdown in Western economic growth. Finally, it evaluates to what extent these determinants may evolve in a different direction during the eighties and thus foster East-West mineral trade. Eastern1 bloc trade in mineral products is a subject of perennial interest in the West. When exports increase, there is much talk of the dangers of dependence on the East for critical fuels and materials. When imports increase, talk turns to the danger of Soviet dependence on Western supplies. A common fear is that the USSR may not only seek to meet its own resource needs but also deny the access of Western countries to these resources. This paper, like three other recent additions to the lite5ature on Soviet foreign trade of commodities2, tries to put matters in clearer and cooler perspective. The first section evaluates the structure of East-West mineral trade and tries to identify some important trends of recent years. The second section relies on supply and demand factors, as well on the Comecon connection (the intra-Council for Mutual Economic Assistance mineral cooperation) to explain why there has been a reversal in the mineral trade trend since the end of the seventies. The last section evaluates the factors which could stimulate East-West mineral trade in the future.

Jan 1, 1986

By Joseph E. Worthington

The announcement of a high-grade ore intercept near Wenatchee, Chelan County, WA, by Asamera Minerals in 1983 triggered widespread interest in this old gold mining district. The district has a long history of exploration and production and was actually one of the few underground gold mines that operated in the post World War I1 years in the US. Gold occurs in a north-trending structural zone in folded and faulted Eocene arkose intruded by andesite and dacite dikes having dates in the 42 to 50 m.y. range. Ore has been mined selectively from ladder veins perpendicular to the trend, from the south end of the trend near Squilchuck Creek. These veins narrow and silicification becomes pervasive northerly where wider zones were caved later in the operation. Recent discoveries at "B" reef at the north end are also in wide zones of silicified arkose. The gold lodes originally cropped out as prominent silicified and iron-stained ridges that were described in the early days as "reefs." The early discoveries were made in out- crop about a hundred years ago, and two claims, the Gold King and Macbeth lodes, covering the most prominent out- crops on the north side of Squilchuck Creek, were staked in 1885 and patented shortly thereafter. A five stamp mill was erected in 1894, but failed to liberate gold for amalgamation. The two patented claims were acquired in 1934 by J. Keegan, who carried out limited exploration and shipped small amounts of flux ore to Tacoma during the next few years. There was no substantial exploration or development of the claims, however, for several years after that time, and ownership of the claims eventually passed to a series of trusts administered by a bank in Seattle.

Jan 1, 1990

By Marshall D. Himes, Erich U. Petersen

The Sheep Creek deposit near White Sulfur Springs, Montana, is a middle Proterozoic stratabound and strataform sediment- hosted massive sulfide containing 4.5 million tonnes (5.0 million tons) averaging 2.5% copper, and 0.1% cobalt in the upper sulfide zone (USZ) and 1.8 million tonnes (2.0 million tons) averaging 6% copper in the lower sulfide zone (LSZ). Mineralization is hosted in lower Newland shales and debris flow conglomerates in the graben controlled Helena Embayment of the Belt Basin. USZ mineralization is characteristically high in Cu, Co, Ni, Ba, As, Pb, and Ag. Mineralogically it consists of barite, pyrite, chalcopyrite, and tennantite with minor amounts of marcasite and various cobalt minerals. By contrast, the LSZ is higher in Cu, Ni, and Au and lower in Co, As, Pb, and Ag. Mineralogy of the LSZ consists of dolomite, pyrite, and chalcopyrite. In both zones significant amounts of cobalt, nickel, arsenic and copper are incorporated in pyrite rims. Tennantite controls the abundance of numerous trace elements in the ores. Fluid incluison data from hydrothermal USZ barite suggests that mineralization took place at temperatures in excess of 250°C, under relatively oxidizing conditions (f02 = 10-32+1) from moderately saline (1.1-3.5m), metal rich brines. The absence of barite in the LSZ suggests mineralization under more reduced conditions (f02 = 10.38+2). Mineralization was initiated following basin subsidence in excess of 400m. Contemporaneous with movement along a growth fault(s) was upward migration of hot metal-bearing fluids which permeated the loosely consolidated sediments and may have vented on the sea floor. The differences in the two zones may be explained by the effects of variations in local basin morphology and solution chemistry.

Jan 1, 1990

By A. V. Castelli

Since the record year of 1981 through 1985 the tonnage of weighting materials (barite and other heavy minerals) used in drilling fluids has decreased an estimated 49%. As in the past, barite still makes up over 90% of the minerals used for weighting materials in drilling fluid. Domestic production of barite has decreased 69% since 1981 and imported barite has made up over 50% of the total barite consumed since 1982. See Figure 1 for usage of barite. The number of operating grinding plants has decreased from 69 in 1982 to 39 at the end of 1985. With the decrease in demand of weighting materials for drilling fluids and an over capacity of grinding existing, prices for weighting materials have decreased dramatically. Although the American Petroleum Institute has not changed any of the specifications for barite, some users have initiated their own new specifications and have proposed to have them included in the API specifications. The exploration for and development of oil and gas dictates the level of weighting material used in the drilling fluids industry. Most forecasters do not foresee (or predict) increases in the level of drilling until the 90's. The primary or unground barite produced in the U.S. mines has a difficult time competing with imported barite due to the location of the mines. These mines are located in North Central Nevada, with small tonnages being produced in California, Missouri, Illinois, Montana and Washington. The major reason, is the difference in transportation costs from the mines versus ocean freight rates from the foreign ports to the major area of use, the U.S. Gulf. Since 1981, the production of primary barite has decreased from 2,849,000/ST (2,584,596/MT) in 1981 to an estimated 890,000/ ST (807,403/MT) in 1985(1). If it were not for the use of unit trains by some producers the production of primary barite in the U.S. would have probably declined another 20% in 1985. During the same period, of the total amount of barite consumed in the U.S., imported barite ore increased from 417, in 1981 to 65% in 1985. The major exporting countries to the U.S. during this period were China 46.27, Morocco 15.27., Chile 10%, Peru 8.4%, India 7.9%, Mexico 5.4%, Thailand 3.9% and Ireland 2.3%.

Jan 1, 1986

By R. B. Berg

Montana sapphires were first discovered in alluvial deposits in the Helena area in 1865 and subsequently were discovered in other alluvial deposits in southwestern Montana and also in a lamprophyre dike at Yogo in central Montana. From about 1900 until the late 1930?s, when synthetic sapphire began to come into widespread industrial use, Montana sapphire mines produced large quantities mainly for watch bearings with lesser production for the gemstone market. The Yogo deposit is now mined for the gemstone market and two of the alluvial deposits are mined to produce sapphires for the fee-sieving of sapphire-bearing gravel and for the direct sale of gemstones. The generally pale-colored sapphires from the alluvial deposits in southwestern Montana are heated to enhance their colors whereas the generally blue sapphires from the Yogo deposit require no treatment. Markets for sapphires from both the alluvial deposits and the Yogo deposit are strong. In spite of reported historic production in excess of 70 tonnes, mineable resources appear to remain at most major deposits. Also abundant untested lamprophyre dikes in central Montana may host sapphires similar to those at the Yogo deposit.

Jan 1, 2009

By M. L. Mellish

The year 1988 unexpectedly turned out to be a good year for the US coal industry. In fact, it was a third consecutive year of record coal production. Accord¬ing to preliminary Energy Information Administration data for 1988, domestic coal consumption went up 5%, or 41 Mt (45 million st), from 1987. Coal exports were up by a surprising 13.6 Mt (15 million st). In 1988, 22.7 Mt (25 million st) of coal were drawn from stockpiles for consumption. Even so, US coal production increased to 862 Mt (950 million st). That was up 28 Mt (31 million st) from 1987. While coal consumption, exports, and production were up, delivered prices for steam coal continued to slide during the year. Metallurgical coal prices, however, firmed up and showed a moderate increase. This reflected tight metallurgical coal markets at home and abroad. Coal consumption US coal consumption reached 800 Mt (882 million st), compared with 759 Mt (837 million st) in 1987. Increased metallurgical coal consumption was one factor. Most of the rise in coal consumption, however, was due to unexpectedly high electricity demand. Unseasonably hot summer weather al lowed added coal-fired electric generation to supplement the drought-related reduction in hydro-electric power supply. Electric utilities consumed 687 Mt (757 million st) of coal in 1988, 35.4 Mt (39 million st) more than in 1987. Coal-fired power plants remained the primary source of US electricity generation, providing 57% of the total in 1988. Coal consumption at coke plants increased 13%, to 38 Mt (42 million st), from the level consumed in 1987. This increase reflects the recent recovery in the iron and steel industry. Metallurgical coal consumption in 1988 could have been greater. But US coke plants reportedly reached their maximum practical production capacity. As a result, net US coke imports amounted to 1.45 Mt (1.6 million st). Despite increased industrial activities, steam coal consumption by industrial plants was up only slightly from the 1987 level, amounting to 69 Mt (76 million st) in 1988. Residential and commercial coal consumption remained virtually unchanged at 6.4 Mt (7 million st). Coal exports and imports US coal exports rebounded in 1988, reaching 86 Mt (95 million st). It was the highest level of annual US coal exports since 1982, when they reached 96 Mt (106 million st). An unusual set of factors led to an opening for US coal exporters in 1988: • a high level of industrial production in Japan and the European Economic Community, • supply disruptions due to labor problems at coal mines in Poland and Australia, • a drought-related reduction in hydro-electric power generation in Canada, requiring increased coal-fired generation, • China's problems in meeting its export commitments, and • a fall in the value of the US dollar. US metallurgical coal exports in 1988 amounted to 56 Mt (62 million st), 9.1 Mt (10 million st) more than the 1987 level. Europe, Japan, and Canada were the principal importers of US metallurgical coal in 1988. European countries, in particu¬lar, increased their take by one-third of US metallurgical coal. The labor problems in Poland and Australia contributed to these higher levels of imports. So did increases in pig iron production of 8% in Japan and 9% in the European Economic Community. US steam coal exports - including bituminous, anthracite, and lignite-increase to 30 Mt (33 million st). This was up from 25.4 Mt (28 million st) in 1987 Contributing to this overall rise were 1.8-Mt (2-million st) increase in shipments to Canada and a 2.7-Mt (3-million st) increase to Europe. Unaffected by the somewhat tighter world coal market, US coal imports showed a slight increase to 1.8 Mt (million st) in 1988. Colombia continue to be the leading exporter to the United States, followed by Canada and Venezuela. Venezuela's entry into the US market is a relatively recent one, having made its first significant shipment in the fourth quarter of 1987.

Jan 1, 1989

By Simon D. Strauss

This article is part of a presentation Strauss made Dec. 3, 1988 at the sixth annual American Mining Hall of Fame (AMHofF) banquet in Tucson, AZ. At the banquet, the Mining Club of the Southwest honored Strauss by naming him the 1988 recipient to the AMHofF. (Industry newswatch, page 6). Introduction In the last two decades, there have been two previous periods of sharply rising copper prices. One was in 1973-74; the other in 1979-80. In both cases, a short period of high copper prices was followed by steep and prolonged periods of low prices. In the language of the market analyst, the high prices were called spikes. Is it likely, then, that three or four years from now the present price of copper will show up as a spike in the charts? There are substantial differences between the current position and the markets of 1973-74 and 1979-80. In 1973-74, US copper prices were subject to government-imposed price ceilings of $0.60 per lb through early December, 1973. These were increased to $0.68 per lb through May, 1974. Meanwhile, mines outside the United States were free of restraint. Rising demand in London pushed the price above $1 per lb in the third quarter of 1973. In early April 1974, it reached a peak of $1.50 a lb. In May of that year, the US ceilings were removed and the domestic price began to rise. What were the causes of this price strength? While ceilings held the domestic price below the world market, domestic consumers acquired all the tonnage offered by US mines. Meanwhile, in the world market, buyers feared prolonged shortages. The Club of Rome had warned that world economic growth would be limited by impending depletion of mineral resources. There was al so concern about a copper cartel that might increase copper prices even more. In early 1974, at a special United Nations session, developing-country spokesmen warned the industrialized world to expect high commodity prices. Also adding to the concerns of copper buyers was the fear that when US wage contracts expired in mid-1974, protracted strikes might ensue. The combined effect of this atmosphere was that consumers accumulated large amounts of copper, far above their normal carry. By midsummer, the position changed radically. While some strikes did occur in the United States, they proved short-lived. The most significant development was a massive economic recession. The energy crisis was causing enormous dislocations in the world economy. Construction activities were sharply reduced and automobile sales plummeted. Public confidence was shaken. Copper sales fell precipitately as consumers decided to draw down their swollen inventories. The price came down too. In April 1974, the London price- as noted-was $1.50 per lb. By the end of the year, it was down to $0.57 per lb. In 1973-74, the copper price rise was fed by fears of shortages, cartels, and strikes. In 1979-80, the market rose on the strength of good demand plus political and military instability. The price rise was also fed by inflationary trends, exemplified by speculation in precious metals. Prior to this second spike in copper prices, the market had been depressed despite economic recovery. Despite reduced US output, copper production in the rest of the world was increasing. Though consumption was rising, surplus stocks reached unprecedented levels. At the end of 1977, the aggregate of stocks at the refineries and in the exchange warehouses was 1.5 Mt (1.67 million st). That was more than three months' shipments at then rates of consumption. In 1978, the statistical position improved. Shipments of refined copper that year were 8% greater than in 1977. The result was reduced visible stocks but -just as was to be the case in 1984-86 - the price remained depressed. In 1979, an even sharper drop in visible stocks occurred as shipments rose by another 4%. This time, though, the price responded. In December 1978, the price in current dollars had been less than $0.70 per lb. By the end of 1979, it was above $1 per lb. And in the first quarter of 1980, it averaged more than $1.20 per lb. Military and political developments were a factor. The hostage crisis in Iran was followed by the Soviet invasion of Afghanistan. To many, it appeared that war might result if the Soviets pushed on into Pakistan. At the same time, speculation drove gold and silver prices to incredible levels. As silver prices rose above $40 per oz), copper above $1 per lb did not seem unreasonable. Then, in March 1980, the precious metals price boom collapsed. Copper prices also retreated, though not as much. In February 1980, the copperprice averaged $1.32 per lb. By December, it had dropped to $0.85 per lb. In 1981 and 1982, the decline continued. The present copper situation Why is the current situation different from these two previous episodes of high prices? First of all, today's inventories are far lower than they were in either 1974 or 1980, when the price declines began. The stocks at refineries and in exchange warehouses are substantially less than they were then. More significantly, consumers today have very limited holdings compared with stocks they carried in 1974 and 1980. Even if faced with a downturn in their own business, copper consumers will not be able to stay out of the market. To the extent they have any business at all, they will have to buy copper. And on the supply side, there is also a significant difference. The year 1988 has been unusual. US production is up sharply, responding to higher prices. But production is little changed in the rest of the Free World. Indeed, several of the major producing countries have mined less copper this year than in 1987 despite the prices increases. Peru has had labor problems that have cut its output. Zambia and Zaire suffer from shortages of expatriate technicians, not to mention spare parts. They also suffer from the failure to maintain equipment or perform adequate development. In Chile, the two largest mines, Chuquicamata and El Teniente, have not met their production targets. Chuquicamata is struggling with high arsenic content in its ore. And, in late 1987, severe rockbursts hampered operations at El Teniente. In addition, depletion of some mines in Australia and South Africa has offset rising output at other properties. Indeed, when final mine output figures for 1988 become available, it may well be

Jan 1, 1989

By W. J. Miles

At the beginning of the 20th century, barite was a mineral of minor importance in the USA. Its primary use was to extend lead oxide in white paint. Barite also added the special qualities of hiding power and flatness to paint. Because white lead sometimes turns black or yellow and barite does not, ground barite became a pigment on its own merit. Barium chloride was added to bricks before firing to stop efflorescence when exposed to weather. Barium carbonate or nitrate added luster and brilliance to glass. Barium chemicals were added to refining sugar, enameling iron, making oilcloths and paper collars, and in the manufacture of paper, artificial ivory, rubber and lithopone. Lithopone became a major paint ingredient in the 1920s; its use lasted until the 1950s, peaking at 150,000 metric tons of barite in both 1937 and 1947 for the manufacture of lithopone. Later in the 20th century, titanium dioxide replaced lead oxide, barite and zinc oxide in the coatings industry. In the 21st century, barite is used as a filler, extender, or weighting agent in products such as paints, plastics, and rubber. Some specific uses include its use in brake and clutch pads for automobiles, automobile paint primer for metal protection and gloss, add weight to rubber mud flaps on trucks, and add weight to the cement jacket around petroleum pipelines under water. In the metals casting industry, barite is part of mold release compounds. Because barite significantly blocks X-ray and gamma ray emissions, it is used as aggregate in high density concrete for radiation shielding around x-ray units in hospitals, nuclear power plants, and university nuclear research facilities. Ultra-pure barite consumed as liquid is used as a contrast medium in medical X-ray examinations. Barite is the raw material for barium chemicals, such as barium carbonate, which is an ingredient in faceplate glass in the cathode-ray tubes of televisions and computer monitors. In the 21st century, barite industrial uses account for an estimated 78,000 tons per year in the United States. Another barite use was patented in 1926 by the oil industry. In this patent, barite is primarily used as a non-abrasive weighting agent for drilling for oil and gas exploration and production. As a weighting agent, it provides the downward force in a water based or oil based drilling fluid for cutting through rock with a tri-cone diamond drill bit. In order to minimize the wear on the drill bit and drill stem, minimum abrasion of the weighting agent is preferred. In recent years in the USA, 95% of the barite produced and about 80% on a world basis are used as a fluid weighting material during the search for oil and gas. During the latter part of the 20th century, barite was used in the drilling mud of oil and gas wells, particularly for wells deeper than 2000 meters, and petroleum well drilling demand for barite became the mineral?s major end use during economic expansions after World War II and subsequent increased use of oil and gas in the USA. The profitability of oil and gas production had a strong effect on the number of drill rigs and consumption of barite. The United States was the leading petroleum well drilling country starting in 1970, reaching 4,530 drill rigs in December 1981, and was the largest consumer of barite. In the USA, record highs of about 2.6 million tons of barite produced and 4.3 million tons consumed were reported in 1981. From 1997 to 2006, barite production declined from 662,000 to 589,000 metric tons. However, USA imports increased from 1,470,000 to 2,530,000 metric tons for lump barite. World production of barite increased from 6,780,000 to 7,960,000 metric tons during the same period. Table 1 (see Appendix) lists USA production, imports and exports and world production from 1997 to 2006. Major sources of imported barite include China, India and Morocco. Table 2 (see Appendix) lists the USA imports and price of barite by country. China, India and Morocco are the three largest exporters of barite to the USA and the world. Vietnam is a new producer, beginning in 2006. IMPACT OF CHINA ON DRILLING GRADE BARITE In the 1970s or before, China began supplying barite to the world drilling market in order to help develop their economy. When China first entered the barite export market, their high production volume, low pricing and low ocean transport expenses to the Gulf Coast forced barite producers in the USA to supply only regional markets, such as Battle Mountain Nevada barite for the western and Rocky Mountain states and Canada. Until recently, it was China?s government policy for domestic consumers to use barite below the API 4.20 specific gravity specification, leaving higher grades for export, but this is no longer the case. In recent years the internal demand for barite in China increased tremendously as their economy rapidly developed. China reduced their former 15% VAT tax rebates to 5% for Chinese barite producers, and then eliminated all VAT tax rebates on December 15, 2006. On the supply side, some high-grade barite deposits in China have been depleted. In particular, the low heavy metals sources are less plentiful. Additional mine capacity is being developed, but the new mines are underground and therefore costs will be higher. China?s appetite for other raw materials has tied up a large portion of the world?s bulk vessel fleet, including Panamax vessels (preferred for barite ore transport). Ocean transport freight rates have increased in recent years, and receiving ports in the USA are congested with imports of higher-added-value products. The Panamax Index, which tracks maritime shipping rates, more than doubled in 2006. China has also devalued its currency from RMB8.30 to RMB7.80 per dollar. These factors are driving up the import price of crude and ground barite for drilling. In addition, in the USA, rail congestion and high fuel prices led to higher trucking rates, increasing the delivered cost of ground barite to oil customers. India is the second largest supplier of crude barite to the USA and world drilling market. It produces all of its barite from a single deposit in the Cuddapah region of Andhra Pradesh State. More than 90% of production comes from the State-owned Andhra Pradesh Mineral Development Corp., and the government continues to closely control production, export volumes, and prices. India saw a dramatic increase in barite prices as a result of its last 3-year tender in 2004. However, in 2004 and 2005 their shipments of crude barite to the USA were not significant. In 2005, India began supplying barite pulverized to meet API specifications to the Gulf Coast. In 2006, Indian production was reduced owing to severe flooding in November 2005 that curtailed mining until mid-April 2006. Morocco has been the third largest supplier of crude barite to the USA and world drilling market. In 2003 and 2004 their shipments of crude barite to the USA were not significant. In 2005, Morocco resumed shipment of crude barite to the Gulf Coast and began supplying barite ground to meet API specifications to the Gulf Coast.

Jan 1, 2009

By E. R. Pantos

US coal production increased 3% to a record 832 Mt (917 million st) in 1987, according to preliminary Energy Information Administration (EIA) data. Most of the increase was due to the unusually warm summer and the increased coal-fired electricity demand for air conditioning. Drought conditions in the Northwest lowered hydroelectric generation, contributing to the higher use of coal by electric utilities. However, excess production capacity and increased competition from natural gas added further downward pressure on delivered coal prices, continuing the declining price trend of the last several years. Coal production by region Appalachian coal production reached 402 Mt (443 million st) in 1987. This is about 3% more than in 1986 and just short of its 1984 peak. Virginia produced 7% more than its 1986 level, due to increased coal-based electricity demand. Smaller percentage increases were attained in eastern Kentucky, Pennsylvania, and West Virginia. Ohio and Alabama were the only major coal-producing states in Appalachia that produced less coal in 1987 than in the previous year. In the Interior region, 1987 coal production reached a record 182 Mt (201 million st), about 2% above 1986. Illinois is the largest coal-producing state in that region. Production there fell about 3.7%, primarily because of lowered demand at electric utility plants in Alabama and Tennessee. However, this was more than offset by production increases in western Kentucky, Texas, and Indiana. After falling slightly in 1986, coal production in the West resumed its upward trend to a record 248 Mt (273 million st). Wyoming is that region's dominant coal producer. It mined 7% more coal than in 1986. Wyoming's increase offset the 11% decline in New Mexico production and smaller declines in other Western states. Coal consumption and prices Domestic coal consumption reached a record 759 Mt (837 million st) in 1987. Most of the increase resulted from the unusually warm summer that led to higher than normal peak demands for electricity in the third quarter. Electric utility coal consumption was also boosted by the below-normal hydroelectric generation that resulted from low water levels in the Northwest. These factors more than offset the effects of increased nuclear power generation and competition from natural gas. As a result, coal provided 56.9% of electric utility generation in 1987, compared with 55.7% in 1986. Electric utilities consumed a record 651 Mt (718 million st) of coal. While electric utility coal consumption increased, the average cost of coal to utilities was down, from $1.58 per million Btu in 1986 to $1.52 in 1987. The average price of coal delivered to utilities in 1987 was $35.09/t ($31.84 per st), the lowest since 1981. Coal prices were held down by a glut of coal supplies and by a decline in the average price of natural gas to electric utilities. Coal consumption at coke plants in 1987 was 2.6% above the 1986's 32.5 Mt (36 million st). This increase reflects steel's recent resurgence. Coking coal demand, though, was reduced by the increased use of continuous casting and electric furnace technologies. The average price of coal delivered to coke plants fell from $56.02 to $51.35/t ($50.83 to $46.59 per st). Coal consumption in the industries other than coke plants amounted to 68.2 Mt (75.2 million st) in 1987, slightly less than in 1986. Coal lost part of its market share to natural gas, which was priced favorably relative to coal. The average price of coal delivered to manufacturing plants was at its lowest level of the current decade. It fell from $39.50/t in 1986 to $37.27/t ($35.84 to $33.81 per st). Residential and commercial coal consumption fell to 6.2 Mt (6.9 million st) that is 9.8% below 1986 and the lowest since 1980. This decline is also attributed to the relatively low price of natural gas in 1987. Coal stocks Coal consumers held 169 Mt (186 million st) of coal stocks at the end of 1987, 5.9% above the 1986 year-end level. Most of this increase was due to stockpiling by electric utilities in anticipation of a possible strike by the United Mine Workers of America early in 1988. Stocks at electric utilities increased to an estimated 154 Mt (171 million st) at the end of 1987, 5.6% higher than the previous year. This was much lower than 1984's stock buildup. Coke plants increased their coal stocks by 30% in 1987 to 3.5 Mt (3.9 million st), rebounding from the unusually low inventories of 1985 and 1986. Other industries increased their stocks slightly in 1987. Coal producers and distributors ended 1987 with 25 Mt (28 million

Jan 5, 1988

By Richard B. Berg

California was a major talc-producing State until the late 1980s when production from the deposits in the Death Valley area ceased because of a number of factors which included pressure to discontinue mining in and around Death Valley National Monument, and health concerns affecting markets for tremolitic talc. The states of Montana and Texas now account for slightly more than half of U.S. talc production. Deposits in an area encompassing southern Death Valley and extending east into the Kingston Range were formed by contact metamorphism of carbonate beds in the Precambrian Crystal Spring Formation next to Precambrian diabase sills. These deposits contain ore ranging from high-purity, fine-grained talc to platy, tremolitic talc with high brightness. Deposits of tremolitic talc and talc schist in the Silver Lake District in San Bernardino County resulted from metamorphism of Precambrian carbonate beds intruded by granitic plutons. Northeast in Esmeralda County, Nevada hydrothermal alteration related to Late Jurassic plutons caused talc replacement of Precambrian to Early Cambrian dolomite. A hydrothermal origin is also indicated for talc deposits in the lnyo Range just north of the Death Valley District where bodies of unusually pure talc occur in Paleozoic lime- stone near Jurassic granitic plutons. Talc is now mined from a deposit in the foothills of the Sierra Nevada Range southeast of Sacramento where quartz-mica schist of the Permian Calaveras Formation has been hydrothermally altered to talc. Replacement of magnesite of the Precambrian Allamoore Formation produced talc deposits mined in the Allamoore District of west Texas. This dark-gray talc of low iron content with carbon- aceous material and dolomite is ideally suited for use in ceramics where it makes a white product when fired. Small bodies of platy light-pink to white talc suitable for use as an extender in paint are also mined in this district. In the Llano District of central Texas talc has replaced impure carbonate rocks and serpentinite. All Montana talc production is from deposits in the southwestern part of the State that formed by Precambrian hydrothermal alteration of dolomitic marble. This alteration produced material with high purity that ranges from very fine-grained, massive talc to coarser grained, foliated talc. Markets include pitch control in paper, paint, cosmetics, ceramics, rubber and plastics. In southwestern and northeastern Oregon, talc has replaced serpentinite in the vicinity of Mesozoic plutons. Soapstone for carving is mined from a southwestern Oregon deposit. Deposits of similar origin occur in central and northwestern Washington.

Jan 1, 1995

By B. Das

Most coals are susceptible to spontaneous heating which in turn creates problem to mining, storage and transportation of coal. It is impossible in actual practice o eliminate spontaneous heating but spontaneous combustion can effecively be controlled through a clear understanding of its mechanism and the factors affecting it. There are altogether six stages in the process of spontaneous combustion. This includes the water adsorption stage and six oxidation stages: chemi-sorption (upto 70°C), decomposition of peroxygens (70°C-150°C), oxy-coal formation (150°C-230°C), combustion initiation (230°C) and active combustion (> 230°C). Heat is produced in all these stages. On the other hand heat is also dissipated so that some equilibrium temperature is reached. If this temperature exceeds a certain critical value (generally about 70°C), coal oxidation may advance to spontaneous combustion. The major factors influencing spontaneous combustion of coal are: coal rank, maceral composition,, water, mineral matter, joints and fissures, seam depth and thickness, mine Layout, method of ventilation, etc. Susceptibility is high for low rank coals and generally decreases with increase in rank. Of the macerals, the exinites are generally most susceptible, the inertinites least and the vitrinites somewhere in between. Water plays a major role on the spontaneous heating of coal, assisting in someways and inhibiting in other. Unrecovered coal in the gob (generally in thick seams) is a major source of fire hazards and this is specially important in shallow mine. Proper design of mine ventilation system can substantially reduce the risk of mine fire. Panel layout and load transfer can affect the development of induced cracks which in turn influence spontaneous heating. Finally, the difference between the spontaneous heating of coal in a seam and that in storage or transportation is mainly due to the change in moistured content, air circulation through the coal and coal fragmentation. These aspects have been analyzed in this paper with a view o reducing the risk of spontaneous combustion.

Jan 1, 1986

By Scott L. Burrill

In the past 100 years in the mining industry, many references are made to the "Widow Makers", 'Miners Con" and many other derogatory names related to physical hazards. They reflect the lack of understanding of the problem facing the early day miner. Workers were enticed, in some cases, to take a chance against a medical question mark that could not be explained by the doctors of those early days. The optimism of the mining man and the challenge of work led him to believe that the physical results could not apply to himself and only applied to some of his fellow workers. Much of the time, to his dismay, he found that he had lost to the game of chance. As medical knowledge improved and mining management began to understand the effects of conditions in the mines and beneficiation plants, steps were taken to alleviate or eliminate the health hazards that were present, The organizations engaged in mining that did not take an active interest in employee health found themselves to eventually be placed in the position of being forced to take action by Federal and State legislation. We find ourselves in the 1970's on the threshold of a new era where the general public is concerned vociferously about "their" environment and the industry feels the governmental controls more strongly than ever before. It can be said that in the past 100 years we have advanced from the "Widow Makers" of the 1870's to the "Retirement Makers" of today. The difficulties of the early days in underground mining were of times compounded in the beneficiation plants above ground. As late as the 1950's some crushing and milling installations in the United States were operating under environmental conditions that complied to the then existing legislation but were below the health level sought by conscientious management. The Mission Concentrator Crushing Plant was designed in 1959 and placed in operation in July, 1961. In the past ten years the crushing plant has been continuously complimented by technical people, government inspectors and casual

Jan 1, 1971

By T. Matthews

"One critical factor in mineral reserves reporting, as well as mine-reserves reconciliation, is the impact of dilution and ore loss in the mining process. This paper considers the implications of various factors on dilution and ore loss projections, by orebody geometry, mining method, and ore control systems. We also discuss the implications of resource estimation methodology on dilution for reserves. DEFINITIONS Dilution and ore loss are two critical concepts in mining, which address the differences encountered between modeled grade and tonnages and actual production. Dilution is volume increase and grade reduction caused by multiple factors, chief among which are mining of waste material along ore-waste contacts, mining of internal waste as ore, and misclassification of waste as ore in the ore control process. There are also geostatistical and estimation aspects sometimes lumped with dilution, including the volume-variance effect (the tendency for small volumes of material to include a less regular distribution of grade than large volumes of material). Ore loss is described as reductions of ore volumes in the mining process due to misclassification of ore as waste in the ore control process, exclusion of discontinuous mineralization from mining due to geometry or continuity, and mechanical losses in the mining process. Dilution is typically taken as an increase in tonnes of ore with no change in contained metal (and thus results in a reduction in grade.) (Some workers consider the likely grade of the diluting material as well, particularly in deposits with gradational grade boundaries—this will be addressed later in the text.) Ore loss is typically taken as a reduction in tonnes at average grade of the ore, and thus results in a reduction in both tonnes and contained metal. If model (resource) tonnes are Mt, grade is Mg, and contained metal is Mm, the resource with ore loss (L) and dilution (D) included (Rt, Rg, and Rm) will be:"

Jan 1, 2015

By Gustavo A. Aristizábal-H, Oscar J. Restrepo-B, J. Alejandro Delgado-J

"In Antioquia region of Colombia – South America most of extractive activity is developed as artisanal and small-scale level, exploiting different types of minerals resources but predominantly gold. This is not only an ancestral livelihood of hundreds of families in this region, but also their unique way of subsistence. However, that situation has not had a positive effect in the sustainable development of this territory because of several unsustainability factors mainly related to mercury use for gold extraction, the incorrect management of tailings and the informal way in which miners perform their activity. In 2010 Antioquia was the place with the highest contamination by mercury in the world with serious effects in ecosystems and health of habitants of this region (Veiga 2010) This paper presents a Socio-Technical Model focused on strengthening capabilities and social capital of artisanal and small-scale miners and its surrounding communities in Antioquia region. This is based on processes of evaluation, design and implementation of appropriate technologies to obtain “clean minerals” without using mercury and with a right management of tailings. In gold extraction it is about gravitational methods of concentration, which take advantage of high density of this element. These methods not only are cleaner but more profitable for miners. Notwithstanding its technical origins, the current model proposes a holistic framework that manages the elimination of mercury in mining not only as a technology transfer matter. Thus, more than formalization the strengthening process seeks to promote a business vision in miners and to develop productive chains in surrounding communities, this means to improve the skills of artisanal and small-scale miners to organize in a corporative way and to help surrounding communities to provide support and supply services to mining and even to other companies. Besides, the articulation with local institutions drives to reinforce their functions of control and accompaniment. In shorthand, this effort aims to empower local institutions, miners and surrounding communities in such a way they are able to face together their own development challenges in a sustainable way."

Jan 1, 2017

By Richard D. Lang

Introduction Argyle is located in the Kimberley region in northwest Australia (Fig. 1). It is a significant diamond discovery by world standards and is the first major diamond find in Australia. The deposit consists of a pipe and associated alluvial deposits. Before the 1970s, diamonds were known to exist only sporadically in Australia. They have been found occasionally in association with gold deposits in Western Australia. There is a small deposit near Copeton in New South Wales. Some alluvial occurrences have also been found in Victoria, South Australia, and New South Wales. The first indicator minerals in the Kimberley region of Western Australia were discovered in January 1973. Production from the alluvial deposits at Argyle began in 1983. A $430-million construction program to develop a mine and treatment plant capable of producing 25 million carats per year was completed in December (1 carat = 0.2 grams). Ownership and management Participants in the project are known as the Argyle Diamond Mines Joint Venture. The group consists of CRA Ltd., 56.8%; Ashton Mining Ltd., 38.2%; and the Western Australian Diamond Trust (formerly Northern Mining Corp.), 5%. The project is managed by Argyle Diamond Mines Pty. Ltd., a wholly-owned subsidiary of CRA. Marketing is undertaken separately by the Western Australian Diamond Trust and by Argyle Diamond Sales Ltd. (for CRA and Ashton Mining groups). History Ownership of the Exploration Joint Venture has changed over the last 12 years as various parties changed their shareholdings. The original Kalumburu Joint Venture was formed in 1972 with five participants, each holding a 20% interest. By 1983, a number of ownership changes had occurred. The end result is that two original participants have sold out. CRA now holds a 56.8% share and the Ashton Mining Group holds 38.2%. CRA also assumed project management in January 1977. Table 1 demonstrates the long lead times involved in developing a project.

Jan 1, 1986

By J. David Lowell

This paper describes the geology of the Kalamazoo copper orebody discovered in the course of an exploration project carried out by Quintana Minerals Corporation under the author's direction in an area immediately southwest of the San Manuel mine, Pinal County, Arizona. In the period 1943-1947, exploration projects were carried out in the San Manuel area by the U.S. Bureau of Mines and Magma Copper Company which resulted in the development of the San Manuel underground block-cave mine which is now in production at a rate of 41, 000 tons per day. Mining claims covering the area immediately west of the San Manuel orebody were staked in 1946 by Frank F. Salas, R. A. Buzan, H. G. Buzan, and W. C. Buzan of Mammoth, Arizona. These claims were optioned to Martha Purcell in 1946, and in the period of 1947-1958 seven churn drill holes ranging in depth from 1,400 to 2,950 feet were drilled by Mrs. Purcell. These holes did not intersect ore and no further deep exploration was attempted prior to the Quintana Minerals project which began in August, 1965, and which is described in this report. The Kalamazoo deposit is in Sections 3, 4, 9, and 10, T 9 S, R 16 E, Pinal County, Arizona, and it is reached by driving seven miles east from Oracle, Arizona (Figure 1) . The writer is indebted to Corbin J. Robertson and Ronald B. Thompson who participated in the exploration planning of this project and to a number of other individuals who contributed to its execution and management. Petrographic work by J. M. Guilbert was used as a basis for rock and alteration classifications.

Jan 1, 1968

By Steve Kral

The Fourth International Symposium on Hydrometallurgy was organized to give those in the minerals processing field an opportunity to discuss current topics of interest in the broad field of hydrometallurgy. Held in Salt Lake City, UT Aug. 1-5, 1993, this fourth symposium also paid tribute to Milton E. Wadsworth for his many contributions in this area over the past 40 years. The science of hydrometallurgy has made great strides since the last symposium was held 10 years ago. The use of electrochemical principles and techniques has produced encouraging results. For example, the application of in situ electrode spectroscopy has helped to understand the mechanisms operating in hydrometallurgical processes. Sophisticated computer models have been developed to handle the thermodynamic properties of concentrated electrolytes. However, it is up to the hydrometallurgist to continuing working on bridging the gap between theory and practice. The successful application of solvent extraction-electrowinning (SXEW) is one illustration of the successful transfer of technology. Its widespread use in the United States during the 1980s played a significant role in the revival of the domestic copper industry. Currently, electrowon copper accounts for about 30% of total US production. Impressive developments in precious metals recovery have also occurred. Since the last symposium, carbon-in-pulp (CIP) and heap leaching have become widely used in gold recovery. And recovery of refractory precious metals ores and concentrates by pres¬sure oxidation and bio-oxidation have made significant advances. In all these examples, hydrometallurgy has played a significant role in the recovery of minerals and metals from primary sources. In addition, considerable attention has been focused on the treatment and recovery of values from secondary sources.

Jan 1, 1994

By F. Mensah-Dwumah, W. H. Baker, G. W. Clough

INTRODUCTION The practice of injecting chemical grouts into permeable soils in order to stabilize them for tunnel construction is a common procedure in Great Britain, Europe and Japan. In this technique, the grout penetrates the soil in a fluid condition, but hardens or "sets-up" in about one hour due to a chemical reaction. As a result, the soil, is strengthened and made less pervious, and this, in turn, reduces ground surface movements, limits ground water flow, and controls movements of the heading during tunnel construction. It is only within the last five years or so that this technology has been used in the United States. Most of the applications have been involved in the work for the Washington Metropolitan Area Transit Authority (WMATA) subway construction. The experience gained from this work is, in many instances, unique and should serve to guide use of the grouting technology in future projects. This paper documents five WMATA case histories; information is provided as to the soil conditions, method of treatment, reason for treatment, and tunnel performance. Locations of the five projects covered by this study are indicated in Figure 1. All are within the boundaries of the District of Columbia and involve soft ground tunnel construction. Basic information for the case histories is given in Table 1. Tunnel sizes and depths below the ground surface as well as general soil conditions are similar in all instances. The tunnels are about six meters in diameter and are located so that the crown is five to ten m below the ground surface. The soils typically consist of alternating sand, clay and silty sand strata. However, soil stratification details are

Jan 1, 1979

By Wilhelm J. Kogelmann

The quest for U.S. energy independence will result in a major increase in underground mining operations. It will necessitate the rapid excavation of development drifts, entries and slopes to exploit underground deposits of energy resources such as coal, uranium and oil shale. Most of this development work will be done in soft and medium hard rock up to an unconfined compressive strength of approximately 20, 000 psi. OBSTACLES TO RAPID TUNNEL EXCAVATION Labor In the U. S. coal mining industry, the underground productivity in tons per man-day declined from 15. 61 in 1969 to 11. 00 in 1973 which is a startling 30% decline. While productivity declines, the cost of labor and supplies continues to rise. Ralph E. Bailey of Consolidation Coal Company recently stated four reasons for the decline of productivity: A shortage of experienced miners, enactment of the Federal Coal Mine Health and Safety Act effective April 1970, major changes in union work rules in 1968, and a deterioration in the attitude of the work force (1). Because there is already a great shortage of skilled miners, the situation will get worse when large new mines for oil shale, coal and uranium open in sparsely populated areas in the Western United States. Only the large scale use of easy to operate tunneling machines can increase productivity and lower the cost of excavation.

Jan 1, 1974

By Lynton B. Manssen

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

Jan 6, 1983