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By Steve Garcia

GEORGE WEINMAN: Our next speaker is Steve Garcia, operations vice president and general manager of mining at IMC-Agrico, Florida. Steve was born in Lakeland, Florida, to an IMC mining family. He has 17 years with IMC-Agrico and Freeport companies, including assignments in North Carolina, Nevada, Arkansas, and Indonesia. His work within the industry includes technical and operating positions including chief metallurgist, drying superintendent, and mines operations manager at Pane Creek. Other experiences include design of a grassroots phosphate facility in North Carolina; construction and start-up of a gold facility near Elko, Nevada; work in the Blytheville, Arkansas, ammonia urea facility; and three years managing engineering, construction, and support services in Irian Jaya, Indonesia. Steve's presentation is "Evaluation and Standardization of Multiple Slurry Pumping Systems."

Jan 1, 1998

By D. Morgan Warren, David Hanson, Alice Alex, Tom Meuzelaar, Heather Lawson, Sam J. S. Wright

Dynamic coal failure events remain a safety concern in underground coal mining due to their sudden nature and high fatality rate. Previous research utilized Principal Component Analysis on field samples revealing strong empirical correlations between positive failure history and low sulfur content (S) and high volatile matter (VM). Further studies indicated that bumping coals tend to be less mature and less well-cleated than non-failure coals. However, these in situ studies faced the challenge of distinguishing intrinsic coal properties from external geological and stress-related influences. This study augments previous findings through laboratory experimental testing of coal samples that included unconfined compressive strength, chemical composition analysis, and qualitative observations on cleating, combined with compositional data analysis and machine learning techniques, to isolate and understand coal’s inherent bursting capacity. These results further confirmed the relationship between coal chemistry and failure classification.

Feb 22, 2026

By E. D. Gálvez, L. A. Cisternas, A. López-Valdivieso, F. Lucay

"The floatability of molybdenite fines in saline solutions was investigated through microflotation studies using a modified Hallimond tube. In addition, the effect of pH and gypsum precipitation from calcium ions (Ca2+) and sulfate ions (SO4 2-) ions in saline water on the recovery of the molybdenite was analyzed. It was found that the floatability of molybdenite fines significantly increased with the ionic strength of the saline solutions and is independent of pH above 0.5 mol/L ionic strength. The high floatability of molybdenite in saline solutions is explained as being due to the low electrostatic repulsion between bubbles and the edges of molybdenite particles, which is exceeded by interactions due to van der Waals and hydrophobic forces. The precipitation of Ca2+ and SO4 2- ions as gypsum had a detrimental effect on the natural floatability of molybdenite because of gypsum crystal attachment on the faces of the molybdenite particles. This precipitation phenomenon may be initiated in copper–molybdenite flotation circuits that use recycled saline water, like seawater containing Ca2+ and SO4 2- ions.IntroductionWater availability is a significant factor in mining projects. Water, particularly fresh water from rivers and underground water, is becoming a scarce resource for mining operations and new projects. Under these circumstances, the use of water with high concentration of salts in flotation plants is becoming increasingly important (Cisternas and Moreno, 2014). The use of seawater has been studied as a sustainable solution for many mining companies in dry areas located near the sea. Notably, using seawater in mining operations is how mining companies in Chile have coped with the problem of water resources (Cisternas and Gálvez, 2014). In 1930, small plants in Chile used seawater to float chalcopyrite from high-copper-grade ores. In 1975, the results of tests in pilot plants for the flotation of copper minerals with seawater were reported. It was found that froth formation in seawater at pH 9.5 was suitable to make the rougher circuit work properly, even without frothers. The Cenizas mining group successfully floated chalcocite, bornite and chalcopyrite in the Las Luces plant in Taltal in Chile using seawater (Moreno et al., 2011). Minera Centinela (Antofagasta Minerals S.A. Chile) is currently processing porphyry copper ores using a seawater mixture consisting of 20 percent fresh seawater and 80 percent recycled water. Lower consumption of flotation reagents was reported in both seawater and salt water. In addition, studies performed with synthetic seawater showed that certain frothers increase the froth volume, whereas others decrease it. Additionally, the froth produced with seawater carries a high amount of gangue, and low-quality concentrates are obtained, requiring more cleaning stages."

Jan 1, 2015

By Peter F. Howard

The lower Middle Cambrian phosphorite deposits of the Georgina Basin shown in Figure 1 were found in the period 1966-1968 by three companies, namely, International Minerals and Chemical Corporation, Continental Oil Corporation and Broken Hill South Limited. Of these deposits the significant ones are Duchess, Sherrin Creek, D Tree, Lady Annie, Lady Jane, and Wonarah which together aggregate several billion tons reserves of phosphate. Due to the economic factors of freight costs to the coast and softening of the world market price for rock phosphate, none of them is in production, nor is any in the development stage. This paper reviews the historical background to the discovery of these deposits and then deals principally with the discovery of non-outcropping phosphorites in the Barkly Tablelands of Northern Territory by the interpretation of gamma radiation logs of abandoned water bores.

Jan 1, 1971

By Peter Hall

The need for large volume covered storage has increased drastically in the last ten years. Increased world demand for such products as thermal coal, potash, metallic concentrates, etc., availability of land for large open storage and environmental issues have brought about this need. This paper discusses briefly demand, environment, types of covered storage and the Alternative Storage System "Eurosilo", a proven system for storage of dry bulk mateials in units up to 100,000 m3.

Jan 1, 1982

By B. P. Bellport

This paper summarizes the Bureau of Reclamation's experience in the use of boring machines to excavate six major tunnels on the Bureau's water resources development projects in the western United States. The summary of experience is presented as a compilation of brief case studies for each of the six tunnels. Each compilation presents data on the tunnel dimensions, geological characteristics of the excavated rock, the tunneling machine used, machine operation, muck handling, method of tunnel support, ventilation system, and related information. The listing of the six tunnels in Table 1 reflects a diversity of tunnel lengths and diameters. However, despite this diversity of dimensions as well as the variety of rock encountered during excavation, the six tunnels have one major characteristic in common: their excavation was significantly expedited by the use of boring machines. Beginning with the 10,079-foot-long Tunnel No. 1 on the Navajo Indian Irrigation Project in New Mexico - the Bureau's first tunnel to be excavated by a boring machine - the boring machines, or "moles," have demonstrated their effectiveness in rapid and economical tunnel excavation. Tunnel No. 1, virtually 2 miles long, was bored through in 9 months, an unprecedented achievement in Bureau engineering experience, as compared with tunnels previously excavated by conventional means. Boring of the 45,630-foot-long Blanco Tunnel and the 26,610-foot-long Oso Tunnel, both on the San Juan-Chama Project in Colorado, set world records in rates of excavation,l/* Two days of exceptional progress highlighted the

Jan 1, 1970

By Ronald G. Schmidt

AND SOME RIN UP HILL AND DOWN DALE, KNAPPING THE CHUCKY STANES TO PIECES WI' HAMMERS, LIKE SAE MANY ROAD MAKERS RUN DAFT. THEY SAY IT IS TO SEE HOW THE WARLD WAS MADE. Sir Walter Scott St. Ronan's Well - 1824 In the minds of many, geologic exploration has advanced little since the early nineteenth century. In truth, despite the development and refinement of new and potentially valuable technological tools, the approach or philosophy of the explorationist has received meager attention in professional literature. In many areas, the explorationist relies upon experience, subjective judgement and general intangible inspiration, often traveling together under the misleading pseudonym of "art," in achieving both an exploration plan and in making the myriad day to day decisions necessary to the execution of that plan. Without a solid, objective basis for decisions, exploration under this concept is little more than guesswork largely by intuition, and it is small wonder that many exploration programs flounder in a sea of over-expenditure inefficiency or fail to fulfill their expected goals within the funding which has been provided. From a rational management point of view, such a state of affairs is frustrating and inconsistent with the application of the same scientific principles which are presumed to be the basis for the exploration methods which are used. This somewhat presumptuous point of view cannot be extended as a general condemnation of the many exploration programs which are both technically and economically successful. On the other hand, the

Jan 1, 1968

By Jacob Mathis, Mark Bradford, Alston Noronha, R. M. True

In June 2022, Louisville MSD completed a 6.5-km (4.0-mi), 6.1-m (20-ft.) diameter CSO conveyance and storage tunnel system located along the Ohio River in downtown Louisville, Kentucky. For large diameter shaft and tunnel construction, drill-and-blast operations among other methodologies were used in close proximity to federal, commercial, and residential properties with no impact to stakeholder infrastructure. s one of the rst maor tunneling proects in Louisvilles metropolitan area, this paper explores Black & Veatchs rigorous geotechnical instrumentation monitoring program that provided uality assurance for local stakeholders and afrmed innovative tunneling solutions can be successfully executed in an urban setting.

Jun 23, 2024

By Yu. A. Polozov, V. A. Lagunov, O. Yu. Lushinkova, Yu. I. Svirskiy, Eh. Ya. Kipko, Roy A. Williams

5.1 TECHNOLOGY FOR INJECTING GROUT INTO BOREHOLES The grouting of fractured rock aquifers is carried out in separate stopes' whose size is determined by the hydro¬stratigraphy and the hydrogeologic properties of the rocks. The number of grouting stopes required depends on the number of intervals in the hydrogeological section. Each grouting stope can include one or several aquifers. Com¬bining several water-producing strata into one stope is pos¬sible only when the values of their permeability coefficients are very similar. In order to achieve efficiency, as many aquifers as possible are included in each stope. In practice, the length of a grouting stope in a borehole usually ranges within 10 to 40 m, but occasionally up to 100 m or more. When conducting grouting operations through boreholes drilled from the face of underground workings, the stope's size can be determined by the thick¬ness of each fractured zone (fault) or by the length of the hole if the entire rock is fractured. Injecting grout into separate intervals of fractured rock can be done from the bottom to the top with ascending stopes or from the top to the bottom with descending stopes. Injection from bottom to top is always preferred. Injection also can be accomplished in separate fractured permeable horizons in the section. The STG integrated grouting method is based on the use of packer and injection equipment and technological schemes that facilitate injection in highly isolated fractured aquifers. For this purpose STG has developed a standard series of packers. 5.1.1 INJECTING GROUT THROUGH BOREHOLES DRILLED FROM THE SURFACE Grout can be injected according to one of four techno¬logical schemes depending on the depth of the fractured aquifers, their hydrogeologic properties and the availability of grout injection equipment if the area is remote (Fig. 43). In the first and most preferred technological scheme (1), the grout is injected from the bottom up with ascending stopes. When this scheme is employed, grouting holes are drilled to the entire projected depth based on the field investigations injection tubes is installed above the top of the first hydrostratigraphic unit to be grouted. This scheme al¬lows the grout to be injected only into the permeable stra¬tum or strata isolated by the packer near the bottom of the hole; it precludes the need to clean or redrill the hole before injecting grout into the next overlying stope. This ascending stope scheme is preferred because of its simplicity and ef¬ficiency. It is used in most of the grouting of saturated fractured rock for the purpose of isolating aquifers while excavating deep mine shafts in the USSR. The second technological scheme (II in Fig. 43) injects the grout in sequence from top to bottom with descending stopes. Injection under this scheme is accomplished through the hermetically-sealed mouth of the hole. It is most advis¬able to grout with descending stopes in saturated fractured rock wherein the aquifers constitute thick networks of frac¬tures. Under these conditions it is practically impossible to drill a grout hole to the entire depth of the underground workings due to the large production rate of ground water. In conducting isolation operations with descending stopes, additional work (relative to ascending stopes) is necessary to drill out the grout in order to create and inject the next stope. As a result, the total amount of drilling required to drill out grout can even exceed the volume of drilling of original rock. Consequently it is advisable to use this inefficient scheme only for injecting grout into holes that contain prolific frac¬tured aquifers at depths less than 150 to 200 m. The third and fourth technological schemes (III and IV in Fig. 43) are used in the selective grouting of separate aquifers. For example, these methods would be applied when a grout hole is drilled to its entire depth, wherein grouting of the upper aquifers must be done first so that the sinking of the first shaft can begin prior to deeper grouting. The third technological scheme is used for the selective injection of grout into an aquifer with a thickness of up to 5 m. For this work the DAU-1-2 removable dual packer is installed. It is lowered into the borehole on an injection pipeline. For aquifers with thicknesses of more then 5 m, the selective injection of the grout is carried out according to the fourth technological scheme; a combination of the DAU-2 hydrodynamic plug and the DAU-1 packing device is used. In order to implement this injection scheme, the DAU-2 hydro-dynamic plug is installed at the bottom of the fractured aquifer and the DAU-1 packer is installed at the top of the aquifer.

Jan 1, 1993

By A. A. Wallach

During the early design stages of the San Manuel Concentrator, numerous questions were raised concerning the required slope for tailings pipelines. The tailings disposal area which had been selected was so situated, that an average down-slope of 5% existed. A gravity tailings disposal system was to be designed and it was necessary to determine the optimum pipeline slope for design purposes. This information was also necessary to determine the life of the available disposal areas before tailings pumping would be required. At approximately the same time as this problem arose, it was reported that a concentrator in the southwest was having considerable operational difficulties due to periodic plugging of tailings lines. These factors combined made it seem desirable to conduct some sort of test work which might give information concerning the flow characteristics of the tailings to be produced, from the San Manuel Concentrator. It was felt that the maximum information could be obtained if a tailings line could be erected which would allow for varying slopes, varying heads and accurate measurement of pulp velocity. A five-foot Denver Agitator was installed on a bank overlooking a cut for a rail- road track. Approximately 160 feet for new &-inch pipeline with victaulic connections was installed on low trestles along the track, with provisions made for varying the slope of the line by use of accurately constructed sets of shims, A valve discharge was installed on the tank so agitated pulp could be run into a standpipe at controlled volumes. This standpipe was 10 inches in diameter and approximately 5 feet high. A 4-inch nipple welded into the side of the standpipe approximately one inch from the bottom was connected to the 4-inch pipeline. At the discharge end of the 4-inch pipeline a launder arrangement was so constructed that the entire discharge could run into a pump sump or into 50-gallon measuring vessels. In normal operation the flow was from the agitator to the standpipe through the pipeline into the pump sump and from there pumped back to the agitator tank.

Jan 1, 1958

By R. G. Johnston

Minerals have many uses in paint systems. These roles include use as primary and extender pigments, sheen control, film durability enhancement, and rheology control. These and other uses of minerals in paints, and the effects of mineral quality variations on coatings performance are discussed. As coatings performance requirements become more demanding, tighter consistency of important mineral properties, such as particle size distribution and purity, is becoming increasingly vital. Future directions of mineral use to meet projected environmental restrictions and performance demands on coatings, including the use of advanced minerals technologies, are examined.

Jan 1, 1993

By Y. Lahaye, O. Martinsson, B. I. Palsson

"Four main and three minor rare-earth-element (REE)-bearing minerals were identified and quantified in the Kiirunavaara apatite iron ore tailings using optical microscopy, an electron probe microanalyzer (EPMA) and a mineral liberation analyzer, and their chemical compositions were analyzed by the EPMA and laser ablation inductively coupled plasmamass spectrometry. REEs are shown to be contained in the minerals apatite, monazite, allanite, titanite, zircon, thorite and synchysite. In zircon, thorite and synchysite, they occurred in only trace amounts and contributed limited amounts to the total REE budget, and these are consequently of minor importance. Monazite occurred as inclusions in apatite and as free particles, 90 percent liberated. Allanite occurred to some degree in mixed grains with magnetite but also as free particles. Monazite mainly reported to the apatite concentrate, while allanite and titanite largely went to the tailings, the latter preferably to those fractions smaller than 38 µm. The amount of titanite in the finest tailings fraction was 2.3 weight percent, containing close to 1 percent REEs, with heavy rare earth elements (HREEs) making up 28 percent of the total REEs. However, a texturally distinct group of titanite grains showed an HREE/REE ratio of up to 67 percent. Furthermore, titanum dioxide analyses indicate that titanite is preferentially released into the tailings from the secondary magnetic separation step in the concentrator. Our data therefore suggest that titanite, occasionally enriched in HREEs, can be extracted from the processing stream and might thus be considered a new source for REEs at Kiirunavaara and similar deposits.IntroductionDeposits of apatite iron ores are the major source for iron in the European Union and are exploited by Luossavaara-Kiirunavaara AB (LKAB) in several mines in the Kiruna-Malmberget area in northern Sweden. Kiirunavaara is the largest of the apatite iron orebodies in Sweden, comprising more than 2 Gt of iron ore with 60 to 68 percent iron (Fe). At the end of 2015, the total accumulated production of crude ore from openpit and underground mining since the start of mining was 1,566 Mt, with ore reserves of 644 Mt grading 46.3 percent Fe (LKAB, 2016). The deposit defines a steeply dipping tabular body, approximately 6 km long and up to 180 m thick, extending at least 1,500 m below the surface. It is situated in the middle part of the Palaeoproterozoic Kiirunavaara Group of volcanic rocks and follows the contact between a thick pile of trachyandesitic lava and overlying pyroclastics (Martinsson, 2004)."

Jan 1, 2017

By D. W. Park

Longwall Strata Control and Maintenance System (LoSCoMS) is a software and data communication system developed at the University of Alabama. This system integrates real-time shield monitoring, data presentation, analysis and forecasting of forthcoming events. The main objective of this system is to provide stability information on longwall panels including excessive shield load, low setting pressure, leg leakage and poor shield performance, eminent maintenance problems, etc. Analyses of various mining and geological parameters were also performed to determine past and present roof characteristics and to forecast roof loading patterns for the following mining cycles, next periodic weighting, etc. A local coal mine in the Warrior Coal Basin has adopted this system to provide daily evaluation of ground stability and maintenance problems of their longwall panels. Two years of experience with this system is covered in this paper.

Jan 1, 1998

By Ping Li, Baokun Zhou, Lei Yang, Changfeng Li, Erhui Zhang

A uniaxial compression experiment was conducted on standard sandstone specimens to explore the sandstone’s mutation characteristics and early warning interval during deformation and failure. Meanwhile, acoustic emission (AE) and digital image correlation (DIC) techniques were introduced to realize multi-field analysis and cross-validation from the stress field, deformation field, and elastic wave field. The mutation characteristics of rock failure were investigated based on the cusp catastrophe theory. The results showed four mutation points in the destabilization process of sandstone: compressional density, yielding, destruction, and residual retention. As an internal activity characteristic of the sandstone failure process, AE directly reflected the dynamic failure process of sandstone. The stress variation was closely related to the evolution of AE characteristics. Sandstone loading failure was a process of the mutations of releasable elastic strain energy, dissipative energy, and releasable elastic strain energy. The mutation of dissipative energy was used as the starting mark of the sandstone warning state, and the second mutation of releasable elastic strain energy was used as the end mark of the sandstone warning state. Besides, the warning range corresponded to the loading time of 178 to 208 s. Finally, the sandstone instability warning interval was re-determined from deformation field evolution characteristics in the sandstone damage process, with a loading time of 180–204 s. This was consistent with the warning interval specified using the cusp catastrophe theory. The combination of AE, DIC, and cusp catastrophe theory revealed the mutation characteristics and early warning interval of sandstone failure. Hence, the results provide significant importance to predicting rock failure.

Aug 23, 2023

By S. G. Hardcastle, Akbar Sheikh

In Canadian underground uranium mines, bacterial leaching is being increasingly applied to low-grade ore reserves. At Denison Mines Limited uranium operations, old stopes are used as leaching vessels; these contain a leaching muck pile brought down by drilling and blasting from the back which contained a low-grade reef. The bacteria used require atmospheric oxygen to oxidize the pyritic ore. A study was initiated to evaluate the ventilation, including oxygen supply, specifically, of flood leaching stopes during their rest period. The method of ventilation investigated was a single ended compressed air system which feeds airlines laid under the muckpile and carried through the inlet pressure bulkhead. The air delivery system was tested for post- blast integrity with a sulphur hexafluoride, SF6, tracer gas technique. This was injected into the intake compressed air line and collected at the stope's borehole exhaust in grab-sampling bags. The samples were analyzed with a laboratory gas chromatograph and results provided information on the stope's airflow, average residence time, overall clearance time, volume of the airpath and the airflow distribution. The borehole exhaust was monitored by anemometer and psychrometer and indicated that the psychrometric conditions in the stope were independent of the area's ambient climate. Evaluation of the exhaust's standard gaseous composition showed the oxygen consumption of the bacteria to be independent of the investigated flow range. Field derived results are compared with computer models, theoretical predictions and laboratory investigations.

Jan 1, 1987

By Miles L. Silberman

Three major suites of igneous rocks were erupted in the Great Basin in middle and late Cenozoic time. The first, most likely, resulted from sub- duction of a Pacific plate (Farallon plate) beneath the North American plate, resulting in eruption of andesitic rocks in the northern Great Basin between 42 and 43 m.y. ago. Between 34 and 17 m.y. ago, igneous activity migrated to the southwest, largely as eruption of volumincus rhyolite-quartz latite ash-flow sheets, ending about 17 a.y. ago with the onset of crustal extension and north-south-trending Basin and Range (rift) faulting. The second volcanic suite erupted between 17 and 8 m.y. ago in the northern Great Basin; is mostly basaltic or bimodal basalt-rhyolite. The third volcanic suite consists of andesitic and rhyolitic lavas and some basalt erupted between about 22 to 6 m.y. ago in the western Great Basin along the northwest-trending Walker Lane fault zone. Hydrothermal ore deposits are associated with all suites of igneous rocks, but the largest production has come from mines associated with andesitic rocks of the third (western Great Basin) suite. The oldest (34 to 42 m.y.) andesitic rocks (first suite) of the northern Great Basin have produced some large deposits; slightly younger silicic rocks of this suite are mostly barren. Many small ore deposits are associated with the 17- to 8-m.y.-old basalts (second suite) of northern Nevada.

Jan 1, 1976

By K. Y. Haramy, K. Hanna

Early identification of adverse geologic conditions and high stress concentrations during the high-speed extraction of coal using modern mechanized longwall systems is a major challenge facing the mining industry. Often, unexpected geologic anomalies that affect rock mass quality are encountered more rapidly, leaving the mine operator with insufficient time or information to deal with the changing ground conditions. The RockVision3D™ seismic tomographic system, developed by NSA Engineering, Inc., offers substantial benefits over conventional geologic/stress-detection methods and has been used successfully in coal mines worldwide. Tomographic images, produced economically and in near-real time, are easy to interpret, allowing mine operators to deal with potential hazards on a day-to-day basis.

Jan 1, 1999

By Wayne P. Myers

Electricity, as normally thought of by a layman's definition, is a man- made force that has no color, no odor, is not visible, cannot be heard, yet man can control it and make it perform his work for him. A person dare not cheat on it, for it then will master him. It has laws, rules, and regulations that must be strictly adhered to if it is to perform in the safest, most reliable, and economical manner. In the early days of coal mining the power source was man himself. Later man employed steam and compressed air to reduce his muscle power requirements needed in the extraction of coal. By the turn of the 20th century, electricity had become the most common source of power for the coal industry. Steam and compressed air are still found in use in isolated cases today for specific applications; however, they are rapidly being replaced by electricity. Electrical laws and regulations are quite extensive and somewhat complex for the proper generation and use of electricity. Man-made laws, rules, and regulations for the care and handling of electricity, designed for man's safety, are rigidly enforced by Mine Safety and Health Ad- ministration (MSHA), as well as the various state departments of mines.

Jan 1, 1981

By George C. Hawley

Historically, mica usage has been low because of limited availability; as a by-product of many small processors, who have lacked motivation for extensive R & D. The discovery of a 30 million ton deposit of 85-90% pure phlogopite, when existing markets are only 300,000 tonnes annually, forced the search for large volume new markets. Increasing costs of energy, petrochemicals, plastics and glass fibers, and environmental constraints on asbestos usage, have led to new opportunities for mica as a reinforcing filler. Extensive research and developments; in beneficiating, processing and treating mica, has been necessary to satisfy these new markets.

Jan 1, 1981

By S. D. Bechtel

Bechtel Civil and Minerals, Inc., one of the Bechtel group of companies, is a large engineering and construction firm that services the mining industry, among others. The firm's head, S. D. Bechtel Jr., comments on how his E&C company is dealing with the recessionary economy. First, he offered a historical perspective. About a half century ago-in the middle of the Great Depression-W. A. Bechtel and several business partners drew up a fixed price bid to build the Hoover Dam. At that moment in history, the W. A. Bechtel Co. was a modest success, but the times were troubled and uncertain. Money was scarce and a lot of contractors across the country were one project ahead of bankruptcy. The bid for Hoover was a make-or-break proposition for Bechtel, and it turned out successfully. The Hoover Dam was a no-frills operation in an isolated and harsh environment. There was plenty of hard work, long hours, and not many amenities. Controlling costs was critical. Everyone knew what had to be done, and why and what the consequences were. Today's Challenge Bechtel is now a bigger, more complex organization whose management views the current economic recession as a challenge to be met in much the same way W. A. Bechtel met the challenge of the Hoover Dam: by pulling together with a sense of purpose and direction. In many respects, Bechtel's situation today has a number of parallels to that which faced my grandfather. The company is eminently successful, but times are tough and there are plenty of signs that they could get tougher. My grandfather bet on the Hoover Dam to insure the future health of his company and I think we can work together again in that same tradition, make some tough decisions together, and the company's future can be just as promising. The first and most important requirement is to make certain that everyone understands the situation. The Bechtel group of companies are in an excellent financial position now. Its workload hit an alltime high in 1982 and it is well positioned in its principal markets. But the next two years may be critical for the company. Traditionally, Bechtel's work load lags behind general developments in the economy. Although many of its clients continue to suffer serious business difficulties, Bechtel is only beginning to feel the impact. The worldwide market for basic metals remains soft; relatively low prices and abundant supplies of oil and gas have flattened the petroleum market and made once promising synfuels projects economically unattractive; utility clients are still caught in the vise between overregulation and escalating costs. And persistently high, long-term interest rates have made capital investments expensive and difficult to justify. The company maintained a healthy workload through 1982. In some areas it has had little new work and consequently has been forced to lay off some staff as projects have been canceled or concluded. In other areas new work has tided the company over and more people have been hired. But new work bookings have fallen off, creating some uncertainty for the near future. 1983 requirements are clear, although seemingly contradictory. Belt tightening and cost reduction are necessary for Bechtel to remain healthy and competitive, enabling it to handle a possible further downturn with a minimum of turmoil and dislocation. At the same time, we need to allocate resources and funds in areas that will keep us positioned for the turn-around marketplace.

Jan 2, 1983