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By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By James D. Bennett

Relationships among mine and injured miner characteristics and HSAC's degrees of injury are examined for 91,404 injuries in under- ground bituminous coal mines in the United States from 1975 through 1982. Injury severity varies by the mining system, geographical region, circumstances surrounding the injury, the injured miner's age, whether the miner was using powered equipment, the year which the injury occurred, and the location in the mine where the injury happened. Injury severity is not related to the injured miner's total mining experience, job experience, and experience in the mine in which the injury occurred.

Jan 1, 1984

The Coal Utilization review arrived too late to appear in the May issue. Coal utilization technology is improving due to the urgency with the 1990 Clean Air Act and the incentives provided by the Clean Coal Technology (CCT) program. Advances in the CCT are the subject of this report because of their broad industry application, support and involvement. Clean coal demonstration program Projects in the $5 billion Clean Coal Technology program are jointly funded cooperative agreements - not contracts - between government and industry. The industry participant in each project contributes at least 50% of the total cost. The participant takes primary responsibility for the project and is awarded any patent rights for inventions that may occur during the demonstration. The government, on the other hand, ensures that schedules are met, costs are controlled and project objectives are met.

Jan 1, 1991

By R. J. Manser

A mathematical model of a shaking table is being developed, for inclusion in a package for the simulation of gravity concentration. The general form of the modules and how they fit into the package is briefly described. The separation on a shaking table is controlled by a number of operating variables and the importance of these variables in the model development is discussed. The influence of wash water, feed pulp density, deck slope, deck amplitude and mass feed rate are reported. The form of the model is described being based on the probability of a particle of defined size and density reporting to a specific discharge site. The mathematical relationships which relate size and density distributions to variations in the operating parameters are presented. The use of these functions in the prediction of the performance of a shaking table is outlined.

Jan 1, 1986

By J. West-Hansen

The problem of long-term production scheduling in an underground coal mine is approached through the concepts of sequencing theory. Based on a typical layout of mining sections, the principles for the approach are: 1. The definition of mining sections as jobs, and mining methods as machines. 2. The reduction of the overall mining activity to the general problem of nonpreemptive scheduling of precedence related jobs on parallel machines. 3. The simplification of the layout to a general type directed network with the nodes representing jobs and the arcs representing precedence relations. 4. The determination of a feasible and near-optimal job schedule given the objective of maximizing the total net present value of the jobs. A general scheduling heuristic is being developed for implementation on an IBM personal computer (PC) as part of an interactive computer system for long-term production planning.

Jan 1, 1986

By Sathit Tandanand

Geological differences among various coalfields restrain the applicability of subsidence prediction using existing European methods. To modify these methods for domestic conditions, the Bureau of Mines, U.S. Department of the Interior, developed a method of assessment to evaluate the lithological effects on subsidence in the Northern Appalachian basin by examining data collected from 16 longwall panels in the coalfield. The assessment is partially completed, and the results to date show that the ratio of maximum subsidence to the extraction thickness, known as the subsidence factor, can be expressed in terms of the width-to-depth ratio by a simple exponential equation which has a coefficient tentatively considered as the subsidence index. This index varies with the lithology of a particular site and can be expressed in terms of the percent distribution of weak and strong rocks in the overburden.

Jan 1, 1982

By Yi Luo, FENGLIANG WU

Explosions and fires originated from longwall gob due to the formation of methane-air mixture have been a severe threat to coal miner’s lives.Many numerical studies on coalmine fire and explosion hazards have focused on the airflow in roadways and mine gobs. However, most of these studies isolate the gob from its surrounding roadways, and the network analysis and the CFD method are applied independently tomodel the two classes of airflows. This approach greatly limits the ability of simulatingmine ventilation flow, especially unable to consider the effects of gob boundary conditions on air exchange between the gob and the surrounding airways. An innovative finite tube method (FTM) is developed to couple the one-dimensional mine ventilation network (MVN) and the 2D/3D gob flow field (GFF). In FTM, GFF is discretized into a finite number of flow tubes each of which is formed by any two adjacent stream lines. These tubes, representing the gob’s field flow, connect the MVN into a new coupling network. To solve the coupling model betweenMVN and GFF, an iterative solution technique is developed inwhich the MVN analysis is used to evaluate the boundary pressures for GFF simulation and in turn the FTM feeds the GFF results back to the coupling network. Based on the FTM approach, a model for gas migration in gob has been established for delineating the hazard zones of explosive methane concentration and spontaneous combustion. A computer program is developed to implement the FTM simulation. An illustrative example with five flow tubes representing the GFF is created to verify the stability and convergence of the FTM solution process. A simulation example also indicates that the accuracy of FTM is improved by 12% compared with previous method. Results of an application case show that the program is capable of quantitatively evaluating the gob’s risk zones prone for spontaneous combustion and gas explosion as well as performing risk analysis for various ventilation scenarios.

Jul 10, 2020

By Peter L. Siems

Humid tropical environments pose many problems for mineral exploration. The problems result from thick lateritic soils, dense vegetation, seasonally heavy rains, deep chemical weathering, few outcrops and thick saprolites. Although geochemical exploration should be potentially a useful technique in these environments, it appears from the scarcity of reports in the literature that insufficient attention has been paid to developing procedures that are specific to the needs of humid tropical areas. For this reason, the authors believe that this account of a geochemical study in a tropical coastal area on the edge of the Brazilian shield is of general interest and importance for potential geochemical exploration surveys in similar areas within the tropics. The objective of the geochemical study was to develop a practical technique of reconnaissance geochemical prospecting for copper deposits in Brazilian tropical coastal lowland areas. In order to achieve this objective, information concerning the secondary dispersion of copper in these areas was required. Consequently, an orientation survey was designed to provide this information. The present account contains details of the geochemical study and the information about the secondary dispersion of copper that was acquired during the course of the orientation survey. Location and Climate The field area is on the Atlantic coastal lowland of Brazil at latitude 13°S. It lies approximately 10 kilometers south of Maragojipe, a city of 15,000 inhabitants; this city is on the western side of the Bay de Todos os Santos about 45 airline kilo¬meters northwest of Salvador. (See Fig. 1) A good gravel road from Sao Felipe to Sao Roque do Paraguay crosses the southern part of the field area. The climate of the area is hot and moist, and is without prolonged dry periods. The mean annual rainfall is about 1600 mm (63 in.) and the greatest precipitation occurs during the winter months of May and June and the summer months of December

Jan 1, 1972

By S. Usui

In a previous article1 the methyl stretching vibrations for a series of xanthates and amines were reported, and the frequency of the methyl stretching vibrations in a homologous series of the alkyl compounds were shown to decrease exponentially with chain length and approach a limiting value corresponding to that of saturated hydrocarbon beyond six or seven carbons. These observations were explained quantitatively by the theory of Goto and Takenaka2 who proposed an equation relating the frequency shifts to the inductive effect of polar groups. As a result, the alkyl groups in the shorter chain heteropolar compounds were interpreted as becoming somewhat polar, and a good correlation was observed between the CH3-stretching frequencies and such surface chemistry parameters as contact angle, surface tension lowering, solubility, and critical micelle concentration" The substitution of fluorine atoms, the most electronegative of all atoms, for the hydrogen atoms in alkyl groups was expected to reverse the direction of the inductive effect within a heteropolar molecule, and its effect on the C-F stretching frequency shifts and on some surface chemical properties became of interest. In a recent study the C-F stretching frequencies of a series of normal perfluorocarboxylic acids and a few 1,1' -dihydroperfluoro alcohols were determined as a function of chain length and the results were compared with the corresponding hydrocarbon analogs. Furthermore, the nature of the induced polarity in the hydrocarbon and fluorocarbon groups was investigated through surface potential measurements at the interfaces of air-aqueous solutions of normal butyl alcohol and of l,l'-dihydroperfluorobutyl alcohol and through differential capacity and electrocapillary measurements at the interfaces of mercury-aqueous solutions containing the above two alcohols. Experimental Normal perfluorocarboxylic acids and 1,1' -dihydroperfluoro alcohols were provided through the courtesy of the 3M Company, St. Paul, Minnesota. Normal butyl alcohol was purchased from Distillation Product Industries, Rochester, New York. A Perkin-Elmer Model 621 infrared spectrophotometer was used to investigate the spectra in the frequency region of 1200 to 1270 cm-l with frequency scale

Jan 1, 1971

By Akira Ishikuro, Masamichi Shintaku, Futoshi Kusumoto, Takeshi Kudo

"The Bankei-Kitanosawa tunnel that is located in Sapporo, Hokkaido, Japan includes a 450m long section near the arrival point where mudstone which can liquate out natural hazardous materials such as arsenic and selenium exceeding the tolerance stipulated by country as well as weathered mudstone and unconsolidated sedimentary rocks with small overburden and the competence factor less than 1.0 are present. The mucks containing hazardous materials were disposed into the waterproof branch tunnels created from the inside of the main tunnel. The full face early ring closure method was employed to ensure the stability of the tunnel in the low strength rock masses having no stand-up time. As a result, the waterproof tunnels branching off the main tunnel can manage water tightness so as to ensure safety and relief against environmental risks of the hazardous materials. It is also demonstrated that the full face early ring closure method enable construction of the tunnel with a small overburden in the low strength rock masses. INTRODUCTION The Bankei-Kitanosawa tunnel includes a 450m long section near the arrival point where mudstone which can liquate out natural hazardous materials such as arsenic and selenium exceeding the tolerance stipulated by country as well as weathered mudstone and unconsolidated sedimentary rocks with small overburden and the competence factor less than 1.0 are present. In order to overcome the restrictions, the hazardous materials were designed to be disposed into large cross section waterproof tunnels which were newly designed and constructed in high strength and hazardous material free Andesite. The lining for the tunnels was composed of with shotcrete. In addition, full face early ring closure (Sato et al., 2013) was employed to stabilize the tunnel so as to enable safe tunnel excavation in low strength rock masses where a ground arch is deemed unachievable. This paper presents the safe disposal method of mucks which are likely to liquate out natural hazardous materials as well as the full face early ring closure method and its mechanical characteristics."

Jan 1, 2016

By Richard L. Bullock

Believe it or not, mine evaluation and feasibility studies are as old as the industry itself. In the first recorded writing on mining by Agricola (1556), he gave several clues as what to look for in evaluating a mine, to determine if it was economically feasible. Below is the guidance from Agricola, with my interpretation of what he would include today. Now a miner, before he begins to mine the orebodies must consider seven things, namely: ? The situation (the geography/topography). ? The conditions (the geologic/mineralogic and mining conditions). ? The water (availability, hydrology and ownership). ? The roads (plus the railroads, power lines, all other infrastructure). ? The climate (the weather-rainfall/environment). ? The right of ownership (the land and legal entitlement). ? The neighbors (the social environmental concerns of the area). It is amazing how much of his guidance has not changed in 455 years. Yet Agricola gives no guidance on determining the correct cost, or determining the correct commodity pricing. But he does give a few words of caution on the related ethics involved on buying mineral properties: ?A prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him.? Three hundred years later (1866), to further amplify this point, in the most famous thing that Mark Twain never said, as an introduction to a lecturer to an audience of gold-miners at Red Dog, CA, the famed author/humorist allegedly described a mine as ?a hole in the ground owned by a liar? (Farrar & Rinehart, 1935). So, one might conclude that between these two dates, the mining industry did little to improve its reputation. Unfortunately, since Mark Twain allegedly made those remarks, we have not done near enough to gain accountability for the mineral industry.

Jan 1, 2011

By Richard M. Tinlin

Some of the practices of the mining industry that may place an undesirable stress on the groundwater environment are coming under increasing scrutiny from legislators and regulatory agencies. Among these practices are mine dewatering, the use of tailings ponds, land rehabilitation, and technological innovations such as in situ leaching of waste clumps and ore deposits. Pernichele, noting that 24 states have enacted legislation controlling to varying degrees the environmental effects of mining, has emphasized the importance of assessing the potential for damage to groundwater when evaluating, planning, and designing mining projects. 1 Illinois has enacted legislation requiring anyone opening, operating or abandoning a mine site to obtain a permit from the Illinois EPA. The law is one of the first to require regular monitoring and reporting to a control agency. Legislation has also been recently enacted at the national level that will have a significant impact on the mining industry; e. g., the Federal Water Pollution Control Act Amendments of 1972 (Public Law 92-500). The stated objective of this Act is to restore and maintain the chemical, physical and biological integrity of the nation's waters. Specifically, according to Sec. 102(a), the Administrator of the U.S. Environmental Protection Agency (EPA) is required to prepare or develop comprehensive programs for preventing, reducing or eliminating the pollution of the navigable waters and groundwaters and improving the sanitary condition of surface and underground waters. The definition of the terms "pollution" and "pollutant" is of particular significance to those who must comply with PL 92-500. The definitions are quite broad and include most of the adverse water quality effects of man's activities. As defined in Sec. 502(19), "pollution means the man-made or man-induced alteration of the chemical, physical, biological and radiological integrity of water." Within the Act, the list of pollutants includes dredged spoil, solid waste, incineration residue, chemical wastes, radioaetive materials, heat, wrecked or discarded equipment, rock, sand, cellar dirt, and industrial waste discharged into water.

Jan 1, 1973

By John M. Dale

Now that the price of sulfur has reached unexpected high levels, it is little wonder that sulfur from surface ores is again receiving attention. In most instances, it is advantageous for an ore to be at or near the surface. However, it is a distinct disadvantage for sulfur ore to be close to the surface because it precludes the use of the Frasch process. The Frasch process depends on the presence of at least 180 m of uniform overburden to allow pressure injection of superheated water into the sulfur-bearing formation to melt the sulfur. In the Frasch process, sulfur separates cleanly from the gangue underground and comes to the surface in a very pure form. Surface sulfur deposits, particularly those in the Western Hemisphere, exist largely due to volcanic activity, and sulfur separation from the gangue is a formidable technical problem. None of the surface deposits are large compared to some of the Frasch deposits, but at the present sulfur price, they are certainly of economic importance. From the turn of the century until 1975, the price of sulfur was for the most part $18-$28/t. However, with the price of sulfur now over $154/t, there are a variety of technical alternatives to consider for sulfur surface ore separation that may not have been economically attractive a few years ago.

Jan 9, 1981

By Gregory Beckstrom

"During a year of challenges in the mining industry, two groups collaborated Aug. 17- 20 for a joint conference on industrial minerals of the Upper Midwest. Hosted in Minneapolis, MN, the 4th Annual SME Twin Cities technical conference and the 51st Annual Forum on the Geology of Industrial Minerals (FGIM) drew attendees from throughout the United States and Canada.Highlights of the event included a one-day field trip on Aug. 17 to a crushed stone and gravel mining and processing operations near the Twin Cities, followed by a visit to a historic mine tunnel within the St. Peter sandstone formation. The latter was used as a speakeasy during America’s prohibition era. A two-day field trip on Aug. 19-20 made stops in central and northeastern Minnesota at a granite quarry and processing plant, a peat harvesting and packaging plant, an iron mine and taconite processing plant, and a silica sand storage and loading operation. In a nod to one of Minnesota’s celebrated luminaries, the group also stopped in Hibbing to visit the boyhood home of Robert Allen Zimmerman, better known to the rest of the world as Bob Dylan.A full-day technical program featuring talks on environmental impacts of silica sand mining, regulatory updates, mine land reclamation and methods for identifying construction material failures (alkali-silica reaction) was bookended by the two field trips.According to Minnesota state geologist Harvey Thorleifson, the keynote speaker of the technical program, “This joint SME and Forum on the Geology of Industrial Minerals conference is a reflection of the important role of the mining industry in society, of the important role that partnerships play, and of the prominence of industrial minerals on the Twin Cities region and iron ore on a national scale.” He added, “While this is a tough year for the mining industry in the region, we are confident in the strength of the profession and the industry in the medium term, as we anticipate a superb SME national conference in Minneapolis in 2018.”"

Jan 1, 2015

By Chee S. Theng

As the 2017 president of the Society for Mining, Metallurgy & Exploration Inc., I am pleased to present the 2017 issue of the Transactions of the Society for Mining, Metallurgy & Exploration Inc., Vol. 342. A significant portion of the contribution that we make as a professional society is the publication of professional and technical papers that accelerate the advancement of scientific knowledge and enable the transfer of technology. Communication within the mining community is the key to a successful society. This technology exchange continues a tradition that dates back to the 1871 meeting of 22 mining engineers in Wilkes-Barre, PA, that resulted in the founding of the American Institute of Mining, Metallurgical and Petroleum Engineers (AIME). Those individuals envisioned that these transaction volumes “would form a most valuable and greatly needed addition to our professional literature.” This volume fulfills that pledge. The 2017 Transactions contains some of the most interesting research and insights from the past year and features an international slate of authors spanning industry, academia and government. Papers include the latest findings from the U.S. National Institute for Occupational Safety and Health (NIOSH), a special review article on Heap Leach Modeling, and articles from two Special Issues on Rare Earths. The 2017 Transactions consists of a total of 54 technical papers, encompassing all 21 papers published in 2017 in the Technical Papers Section of Mining Engineering (Vol. 69) and all 24 papers published in 2017 in Minerals & Metallurgical Processing (Vol. 34). Additionally, this volume contains 9 papers that are being published for the first time in this issue. The papers presented in this volume were written by some of the most distinguished professionals in the industry worldwide. All of the technical papers were peer-reviewed. The process of review and publication requires much hard work by authors, reviewers and our Publications staff. As the 2017 president of SME and on behalf of all our members, I would like to extend our gratitude to all whose volunteer efforts contributed to the publication of this volume.

Jan 1, 2017

By Chee S. Theng

As the 2016 president of the Society for Mining, Metallurgy & Exploration Inc., I am pleased to present the 2016 issue of the Transactions of the Society for Mining, Metallurgy & Exploration Inc., Vol. 340. A significant portion of the contribution that we make as a professional society is the publication of professional and technical papers that accelerate the advancement of scientific knowledge and enable the transfer of technology. Communication within the mining community is the key to a successful society. This technology exchange continues a tradition that dates back to the 1871 meeting of 22 mining engineers in Wilkes-Barre, PA, that resulted in the founding of the American Institute of Mining, Metallurgical and Petroleum Engineers (AIME). Those individuals envisioned that these transaction volumes “would form a most valuable and greatly needed addition to our professional literature.” This volume fulfills that pledge. The 2016 Transactions contains some of the most interesting research and insights from the past year and features an international slate of authors spanning industry, academia and government. Papers include the latest findings from the U.S. National Institute for Occupational Safety and Health (NIOSH) and special-issue articles on process development testing. The 2016 Transactions consists of a total of 65 technical papers, encompassing all 21 papers published in 2016 in the Technical Papers Section of Mining Engineering (Vol. 68) and all 27 papers published in 2016 in Minerals & Metallurgical Processing (Vol. 33). Additionally, this volume contains 17 papers that are being published for the first time in this issue. The papers presented in this volume were written by some of the most distinguished professionals in the industry worldwide. All of the technical papers were peer-reviewed. The process of review and publication requires much hard work by authors, reviewers and our publications staff. As the 2016 president of SME and on behalf of all our members, I would like to extend our gratitude to all whose volunteer efforts contributed to the publication of this volume.

Jan 1, 2016

By Thomas W. Healy, David V. Boger, Yee-Kwong Leong, Lee R. White, Peter J. Scales

The concentration of mineral slurries by conventional thickening devices is discussed. The role of additives on the compression of mineral slurries is also examined. Results for a range of flocculation conditions are presented. The compression of flocculated mineral slurries is found to be highly dependent on the fundamental particle-particle interaction forces and hence, the rheology of the particulate fluid. It is demonstrated that a detailed knowledge of the properties of both the mode of operation of the thickening device and of the solid/liquid interface is required for improvement in the rate and in particular, the extent of dewatering.

Jan 1, 1995

By R. E. Johnson, L. V. Araújo, B. R. Palmer, L. M. Abrantes, G. W. Warren

The behaviour of chalcopyrite - mineral specimens and a Portuguese concentrate - in 2M chloride solutions prepared from hydrochloric acid and sodium chloride, has been characterized by cyclic voltammetry. The study has shown the influence of the potential and of the presence of impurities in the reaction schemes and their relative extent. The dissolution of chalcopyrite concentrate under potentiostatic control has been investigated and found to confirm the effect of the selected potential on the surface modification/rate of dissolution. An attempt has been made to correlate the information obtained with the response of the concentrate electrode to constant current treatments.

Jan 1, 1993

By James Lonergan

This paper describes the application of the Graphics Assisted Under Ground Engineering (GAUGE) software to a 2-layered room and pillar hard rock mine. The graphics- assisted mine modeling and mine planning capabilities of GAUGE are demonstrated. The system uses polygons to model the room and pillar mine design and displays the model in plan view on the graphics screen,. The planning engineer interactively specifies areas to be mined in the medium or long term. The system calculates and accumulates tonnages and grades for the user-specified areas based on the layer being mined and the particular unit operation (drifting, widening or benching).

Jan 1, 1989

By Mark J. Zdunczyk

Short Mountain Silica mines the Clinch Formation, an orthoquartzite, for silica sand. The operation is located near Mooresburg, TN, about 80 km (50 miles) northeast of Knoxville. Short Mountain is a local geographic name given to an area of resistant sandstone (Fig. 1). The area is part of the Clinch Mountain system that extends from eastern Tennessee to southwestern Virginia. The thick sandstone unit is more technically called a quartz arenite (orthoquartzite) that forms most of the mountain. In 1980, a Knoxville resident brought the Clinch Formation - Short Mountain in particular - to the attention of the large silica-sand producers as a potential silica-sand mine. Working with a local contractor who owned several hundred acres on Short Mountain, the Knoxville resident contacted interested companies. Many silica companies reviewed the property including Ottawa Silica Co., Pennsylvania Glass Sand Co. (both now US Silica Co.),Unimin Corp.,The Morie Co. and others. AFG Industries was the main market for the glass sand product from this potential mine. It had two plants, both within trucking distance from the site. All the silica sand producing companies, however, declined to develop the site. A few years later, Unimin Corp. decided to drill and evaluate the deposit. From that evaluation, Unimin leased the property but later dropped it. The relatively limited market for the Short Mountain product as well as Unimin’s recent acquisition of Carolina Silica were reportedly instrumental in the company’s decision to let go of the lease. Several other companies-unrelated to the silica sand industry - looked at the site but no one was interested in developing it. In 1986, J.D. Nicewonder, owner of coal mines in Virginia and Kentucky, was approached to investigate the site. Nicewonder began to develop the site with the intent to produce glass sand to supply AFG Industries. In May 1988, the first shipment of sand was trucked to AFG Industries.

Jan 1, 1992