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By Toshihide Ito, Jie Liu, Takashi Nishiyama

"Human society evolved from an agricultural to industrial and, subsequently, to a service society. As the resource requirements for each stage of this development differ, trends of metal and energy consumption are related to shifts in society. The increase pattern of supplemental energy is similar to that of mineral production throughout the world. Low positive and stable long-term increasing occurred before 1950, whereas they increased quickly after 1950, especially between 1950 and 1973. A substantial decline in· the growth of energy and mineral production began in 1973 and lasted until the early 1980s. Production of energy resources has recently begun to increase again at a high growth rate in the world. Observing the consumption trends of energy and key metals, it is clarified that increasing patterns can be thought in three stages.IntroductionHuman society evolved from an agricultural to industrial and, subsequently, to a service society. As the resource requirements for each stage of this development differ, trends of metal and energy consumption are related to shifts in society [1-3]. Humphreys [4] described that both the non-ferrous metal consumption and the construction material consumption showed a similar trend dropping markedly in the UK over the period 1960-1992. On the other hand, per GDP (Gross Domestic Product) consumption, that is, the intensity of use of construction materials has declined sharply over the past 30 years, more so than the intensity of metal use in the USA [5]. Nishiyama [6] observed that increase pattern of supplemental energy is similar to that of mineral production throughout the world."

Jan 1, 2000

By G. T. Lapidus, O. J. Solis-Marcial

"The oxidative dissolution of copper from refractory minerals, such as chalcopynte, represents a technological challenge that has occupied hydrometallurgists for more than half a century. Innumerable processes have been suggested, but the majority operates at high temperatures or employs corrosive media. The origin of this refractory nature is the formation of passivating phases of iron(III) or copper. One option is to add non-corrosive ligands that complex these metal ions, thereby facilitating their dissolution. In the present work, the effect of acetone in sulfuric acid solutions was studied. The initial experiments were on chalcopynte carbon paste electrodes using cyclic voltammetry, where greater reactivity was observed. Later, leaching tests with hydrogen peroxide, cupric sulfate and ozone and, as oxidants, were performed. High extractions were achieved in three hours at 50°C. The solid residues contained the iron in the form of Fe203 and FeOOH.IntroductionChalcopyrite is the most important mineral of polysulfide copper ores [1] and accounts for approximately 70% of the world's copper reserves [2]. Currently, the copper present in chalcopyrite is extracted mainly by pyrometallurgical processes, which generate environmental concerns because of the formation of SO2 gas and submicron particulates [3]. The development of a less aggressive hydrometallurgical process for the extraction of copper would constitute a possible solution to these problems. For that reason, studies of the dissolution behavior of chalcopyrite are of great technological importance [4], However, the proposed oxidative leaching routes for chalcopyrite, generally at high pressures and temperatures, have not been implemented on an industrial scale, because of the elevated costs required to equal the high copper extractions obtained in thermal processes. These extreme leaching conditions are required because of the refractory nature of chalcopyrite. Passivation has been used to explain this phenomenon, although researchers have disagreed on the composition of the layer, which is various have assumed to be sulfur, copper sulfides, and iron-bearing jarosites or hydroxides [5]. If the latter compounds are the cause, an alternative solution would be the use of polar organic solvents in the oxidative leach to decrease the formation of the passivating iron layer. In this work, the influence of acetone on the oxidative leaching of a chalcopyrite concentrate at room conditions is explored."

Jan 1, 2012

By Arthur E. Morris

Process modeling software is used extensively in process engineering, but there is a notable lack of affordable software for educational uses. This paper describes two educationally oriented software programs for thermochemical modeling of processes involving metals, minerals, and ceramic materials. Both programs run as Excel@ spreadsheet files. The first is FREED, a thermodynamic database program containing datafiles for 2500 species. It contains the entire U. S. Bureau of Mines and most of the U. S. Geological Survey database, plus data for scores of other species drawn from various sources. Several modules are available for manipulating and viewing the data. The second program is THERBAL, for making thermodynamic calculations using FREED data. Equilibrium calculations can be made for systems with non-ideal solutions, for a specified set of pressure, temperature, and input amounts of reactants. An optional heat balance is also calculated. The results are displayed as tables or charts in Excel worksheets. Examples of the use of THERBAL will be given for the reforming of natural gas for DRI production, DRI production, and EAF steelmaking. Some observations will be made on its use in the classroom. The development of FREED and THERBAL was initially carried out at the Department of Metallurgical Engineering, University of Missouri - Rolla as part of a project to preserve and enhance the Bureau of Mines database. The current versions were developed privately by the authors.

Jan 1, 2002

By Zhang Jianliang, Xu, Zuo, Runsheng, Haibin, Kexin, Jiao

Full oxygen blast furnace iron-making is one of the new technologies, which is most likely to realize large-scale application. In this paper, based on the technology of full oxygen blast furnace, the reduction behavior of pellets is studied systematically by using the analytic method of non-isothermal dynamics on the different atmosphere(CO,H2) and the dynamics model of gas-solid reduction reaction is constructed, which lay the foundation of reduction model establishment of full oxygen blast furnace burden. The result shows that the time of pellets which began to react is delayed with the increase of the content of H2. When the temperature is between 650 'C and 1050 'C, the content of H2 in the reduction atmosphere is larger, and the rate of the reduction pellets is larger. The reduction rate changes at 780 'C, and a certain amount of H2 in the reducing atmosphere will significantly improve the reduction reaction when the temperature is above 780 'C. Non-isothermal reduction behavior is controlled by interfacial chemical reaction and internal diffusion under high reduction potential. H2 ratio in reducing atmosphere increased from 0% to 100%. The reduction reaction of the apparent activation energy decreased from 49.03kJ-mor1 to 33.74kJ·mor1.

Jan 1, 2013

By L. J. Cabri

The level of mineral exploration activity for platinum in recent years, especially in North America, has ranged widely. Exploration programs have been based on a variety of ore deposit models and deposit types. These range from the classic magmatic model for sulfide/oxide deposits and their associated placers, through hydrothennal models for bonanza-type deposits, to low-grade mineralization potentially amenable to lower cost bulk mining methods. The platinum-group element (PGE) distribution in these different deposit types is not well-known however, and PGE determination is fraught with analytical difficulties. To properly assess a prospect or to achieve effective recovery by mineral processing, it is important to determine the mineralogical distribution of the PGE.

Jan 1, 1988

By T. Xin

A vertical grain boundary intercepting a horizontal free surface forms a groove to reduce the combined surface energy of the system. We study grooving by surface diffusion with anisotropic surface energy. A recently developed delta-function model of facets is used to describe the surface energy with three or four fold symmetry. It is found that the groove grows following a similarity law. The self-similar groove profile is solved numerically by a shooting method. Even with strong anisotropy, the groove profile can be smooth if the exposed surface orientations do not include a facet orientation. The smooth self-similar groove shape is the same as an isotropic groove, but the size is reduced by a factor that depends on the degree of anisotropy. This induces a large error on the value of surface diffusivity if the isotropic model is used for an anisotropic system. In this talk. we will describe how to correct for this error.1 I Xin, T. and H. Wong, "Grain-Boundary Grooving by Surface Diffusion with Strong Surface Energy Anisotropy," Acta Materialia 51, 2305-2317 (2003). Keynotes: Grain growth, Surface Diffusion, Surface energy, Anisotropy

Jan 1, 2003

By Elsa Agante

Recycling of solid wastes, a common practice nowadays, requires the separation of the different materials in order to increase the products added value. The separation of one plastic from mixtures of different types of plastics is not easy due to their similar physical properties, but different techniques are available, from automatic sorting systems based on optical sensors to techniques adapted from mineral processing, namely gravity, froth flotation and electrostatic processes. In the last decade, many researchers have addressed the separation?s problem of different polymers, like Polyethylene Terephthalate (PET) and Polyvinyl Chloride (PVC), two polymers commonly used in packaging which have similar density. One proposed technique is the classical froth flotation performed in agitated cells. Froth flotation is a versatile and relatively cheap process widely used in mineral separation. It is based on the different behaviour of particles in the presence of an inter-phase air-water, which depends on the materials surfaces properties. Froth flotation can be affected by some variables such as impeller speed and air flow rate. Agitated cells, when used with low density materials, like plastics, can produce overstated turbulence that prevents the adhesion and collection of particles in the froths. In this case, separation is favoured by column flotation smoother hydrodynamics. This paper proposes the separation of PET from PVC by column flotation. The experimental work was carried out in a column of 9cm diameter and 1m high. The effects of some operating conditions, such as depressor and frother concentration, air flow rate and feed grain size on products grade and recovery were evaluated and the best flotation conditions for the separation of these plastics were established.

Jan 1, 2006

By P. K. Jha, M. M. Mahapatra, H. K. Mohanty, Pradeep Kumar

"During friction stir welding, the tool geometries affect the weld together with the process parameters like welding speed, vertical pressure and tool rotational speed. The present investigation deals with the three dimensional computational fluid dynamics modeling of friction stir welding process considering material flow around the tool, welding speed with respect to tool geometries. Friction stir welding tools with different tool geometries were used for the experiments to achieve acceptable aluminum welds. The temperatures near the welds for each tool were experimentally observed. A 3-D computational fluid dynamics (CFD) model was developed. Temperature-dependent material properties of the aluminum alloy were used in the CFD model. Thermal analysis was carried out considering rotational speed, vertical pressure and traverse speed for the tool geometries. The numerically predicted stirring patterns and temperature profiles closely matched with the experimental ones. IntroductionThe friction stir welding (FSW) is a solid state welding process where generally the metallic materials are joined by the combined action of frictional heating and weld zone stirring by a rotating tool [1]. The heat generated in the process is much below the requirement of melting the plates; hence the FSW process is devoid of harmful effects those are observed during arc welding. The FSW process utilizes a tool which has a shoulder and a protruding pin known as the probe. The shoulder is responsible for frictional heating while the pin probe facilitates stirring of the joint material. A schematic of FSW process is shown in Fig. 1."

Jan 1, 2012

By Xueming Lv

The rotary kiln-electric furnace (RKEF) process is the main method for producing ferronickel from nickel laterite ore. However, this process is energy intensive as it involves several high temperature steps. Therefore, a novel process is proposed to directly produce ferronickel from nickel laterite ore by semi-molten reduction, which is expected to be realized in a rotary hearth furnace (RHF). The RHF process is able to shorten the flow sheet, decrease the reaction temperature as well as reduce energy consumption. In this study, the influence of basicity on reduction of nickel laterite ore was investigated. The results showed that it is possible to produce the ferronickel nugget directly at 1400 °C when the quaternary basicity [(mCaO + mMgO)/(mSiO2 + mAl2O3)] was fixed at 0.60. Under this experimental condition, the grade and the recovery ratio of nickel reached 11.53% and 98.59%, and the grade and recovery ratio of Fe were 84.16% and 68.72%, respectively.

By O. Tiitu

Drying is a unit process that has numerous applications in metallurgical process industry. Kumera Technology Center is a worldwide equipment and process supplier, who has expertise on both direct and indirect drying. In a conventional direct heated dryer, the required energy is obtained from combustion of fossil fuels emitting a considerable amount of off-gases. However, thermal energy can be already available in some metallurgical plants such as modem copper smelters where steam is produced by waste heat boilers of flash smelting furnaces. The total volume of off-gases, and especially the amount of harmful gases, released into atmosphere can be remarkably reduced when using steam as an indirect energy source for drying. Kumera Technology Center has developed a new type of steam dryer for drying of, for example, abrasive copper concentrate with silica sand. In the development of the new dryer, Kumera's approach has been to combine the best properties of both the existing steam dryers and the rotating drum dryers. In the design, special attention has been paid to overcoming the reported problems of excessive wear and clogging of steam tubes and to reducing the required maintenance operations. The Kumera Steam Dryer, having a patented flexible steam tube arrangement inside the rotating shell, has a high effective heating area - drum volume ratio without leading to problems with build-up and clogging. It can also be easily scaled up so that a single dryer can dry all of the feed for a large flash furnace. In this paper, we will present the operational and maintenance experiences from two years operation of the first full-scale Kumera Steam Dryer at Norddeutsche Affinerie Aktiengesellschaft in Hamburg, Germany. We will also provide an overview of the future developments with respect to construction and scale up as a response to market demands.

Jan 1, 2002

By K. Adham

"Fluidized beds are utilized in a wide range of high-temperature applications throughout the metals and materials industry. Their main advantage is the fast and uniform heat and mass transfer between the hot combustion gases and the particulate solid feed. A further benefit can be the lowering of the processing plant's energy consumption, through heat recovery from the fluid bed processes used for solids heating. Here, the enhanced energy efficiency of fluidized systems is investigated and the modeling results are discussed for three configurations: the flash tube, the single bubbling bed and the multi-stage fluid bed. Key thermal design aspects of each system are identified based on results from process simulations, in order to benchmark their main operating features and overall energy efficiency. Suitability and applicability of each configuration is also discussed based on a number of process and material property considerations.IntroductionCombustion based heating of particulate solids is commonly done using three different types of fluidized beds. The flash tube (FT) is similar to a hot pneumatic transport system. The single-stage fluidized bed (FB) typically uses in-bed combustion. The multi-stage fluidized bed (MSFB) can have two or more stages stacked into a tower.Flash tube (FT) suspends the incoming solid charge in a high-velocity stream of hot combustion gases. To maintain the solids suspension in the FT, two parameters are required: high velocity for elutriation of the particles and adequate solid-to-gas ratio for avoiding high pressure drops and solids drop-out [l].The fluid bed (FB) works at much lower velocities than the flash tube. Therefore, most of the solids are not conveyed in the gas stream, but are only suspended in a liquid-like manner. At minimum fluidization velocity (Umr), the gas flow exerts just enough force on the solids to keep them suspended in place [2].Multi-stage fluid bed (MSFB) heats up the solids as they are transferred from an upper bed level to a lower one, counter-current to the rising flow of hot gases generated at the lowest stage. As the temperature and volumetric flow of the gases decrease from bottom to the top stage, smaller bed diameters can be used in the energy recovery stages [3]."

Jan 1, 2014

By S. V. Subramanian

The tool material and the machine design for high speed machining are well advanced over the last decade but the steel design has lagged behind. The paper examines the design of steel in order to control the sliding tribology for high speed machining under dry machining conditions. In high speed machining of steel, accelerated chemical wear of the tool occurs once atomic contact is established at the tool-chip interface, resulting in poor tool life even with high performance tools such as cubic boron nitride. Recent research has confirmed the occurrence of nanocrystalline grains in the interfacial layer of the chip at the tool-chip contact. The volume percentage of grain boundary is increased significantly (10 to 30%) as the nanocrystalline grain size is decreased well below 30 nm. The solubility of tool material into the nanocrystalline grain boundary is two or three orders of magnitude greater than in the crystal lattice. Further the kinetics of diffusion in the grain boundary is seven or eight orders of magnitude greater than in the crystal lattice. Enhanced nanocrystalline grain boundary diffusion occurring in the interfacial layer at the tool-chip contact causes the accelerated chemical wear. Significant improvement in tool life could be achieved by engineering glassy oxide inclusions in steel, designed to self-lubricate the tool-chip interface in-situ at higher cutting speeds. Thus the control of sliding tribological condition at the tool-chip interface is key to suppress nanocrystalline layer formation at the tool-chip contact and hence prevent accelerated chemical tool wear. Sulfide inclusions are designed essentially to promote chip fracture. In addition, sulfide inclusions are designed to act as a diffusion barrier at the tool-chip interface. The application of inclusion engineering concepts to enhance the tool life in high speed machining will be demonstrated with a suitable case history.

Jan 1, 2006

By Petrus Christiaan Pistorius, Farzin Fatollahi-Fard

The production of titanium oxycarbide – a consumable anode material used in molten-salt processes for electrowinning titanium – from heavy mineral concentrate, such as a high-titania leucoxene and natural rutile is described. The oxycarbide is prepared by carbothermic reduction of the oxide at elevated temperature. Particle size distribution (of the titanium oxide raw material) and temperature have large effects on the kinetics of the reaction, which seem to follow a “shrinking-core” model. It is anticipated that low porosity (in the anode pellets) would be advantageous during electrolysis. Particle size distribution, extent of reaction during carbothermic reduction, and sintering temperature are expected to affect pellet porosity after sintering, and are being tested experimentally.

Jan 1, 2015

By F. Kongoli

Nonferrous and ferrous smelting industries have recently faced the unavoidable necessity of changing and/or improving the smelting technologies as a result of the use of new raw materials which are becoming available from different geographical areas. These new feed materials usually contain different ore composition and higher level of minor components, which adversely affect the smelting process. Due to the problems encountered in several processes as a result of this feed diversification some work has been undertaken in order to make uniform the feed and avoid later surprises in the smelting process. However this has proven to be very difficult and sometimes almost impossible. In this work a more viable approach is undertaken to deal with this problem. It consists of controlling not the cause of the problem i.e. the feed composition but instead the results of this feed change, i.e. the end-point of smelting technologies. It is shown that this approach, when carried out through advances physicochemical modeling and simulation tools is not only easier and less costly but it also helps the control optimization and automation of the smelting processes. Several examples are given and future work is underlined.

Jan 1, 2003

By Norihiro Murayama

The hydrothermal syntheses of zeolites from coal fly ash were carried out using NaOH and KOH as an alkali source. The cation exchange capacity (CEC) and the ion exchange selectivity were investigated for the zeolites synthesized by a hydrothermal treatment. The effective usage of the zeolite as a cation exchanger was considered from the viewpoint of engineering. Zeolite P, HS (hydroxysodalite) and K-CHA (potassium-chabazite) are mainly formed as zeolite species in NaOH or KOH solution at 393K. The zeolite P and K-CHA have a large exchange capacity as a cation exchanger. The cation exchange isotherms of various monovalent and divalent cations with various zeolites are investigated. The order of selectivity of the zeolites is as follows, NH4+> K+> Li+.For the divalent cation, the largest removal amount is obtained for Pb2+ in the low equilibrium concentrations below 0.2mmol/dm3, and almost perfect removal can be achieved for Pd2+. The order of selectivity of zeolites in low concentration is expressed in the following order; Pb2+> Co2+> Cd2+> Ca2+> Mg2+> Ni2+. Ii is considered the zeolites obtained from coal fly ash can be used as an excellent cation exchanger.

Jan 1, 2006

By Micheal McCarter, Biswadeep Saha, Meenakshisundaram Ramanathan, Chai Ren, Sivaraman Guruswamy

"Three-point bend test was used to study the effect of electrochemically charged hydrogen and magnetic field on the embrittlement behavior of AISI 4340 steel in this work. Acoustic emission signals were collected during the test and analyzed to gain an understanding of the crack growth process. Cathodic hydrogen charging in AISI 4340 steel resulted in drastic reduction of ductility and strength. Hydrogen embrittlement was characterized by a change in fracture surface from dimpled ductile surface to quasi cleavage type fracture. No significant effect was observed in the presence of magnetic field. The acoustic emission signals collected during the test provided an indication of the extent of energy released during the crack growth process.*Support of this work by NSF through the award DMR-0854166 is gratefully acknowledgedIntroductionGrowing interest in hydrogen as a clean fuel and use of steel and other iron based alloys for storage and transport of hydrogen has led to extensive study of the influence of hydrogen on the mechanical properties of these alloys. Hydrogen interaction with materials may result in degradation of mechanical properties. Embrittlement, either ductile or brittle, can be described as a condition which decreases the toughness of the material or increases the ease of crack growth. Hydrogen present even in few parts per million is sufficient to embrittle steels at room temperature [1]. In most cases, hydrogen exposure is through an electrochemical process in aqueous corroding environments. In such cases, they are prone to be exposed simultaneously to electrically induced magnetic fields, which are also believed to affect the hydrogen embrittlement susceptibility of these alloys. So it is also important to study the effect of magnetic field on the hydrogen embrittlement susceptibility. Hydrogen solubility by electrochemical process in aqueous solution is proportional to square root of current density for iron. [2,3]"

Jan 1, 2012

By Xuyang Liu, Xuewei Lv, Yu Zhang, Xiaolong Wu, Chunxin Li

Titanium nitride is a broad-spectrum specific functional material because of its many superior properties. Therefore, it is necessary to investigate synthesis methods of TiN and alloys containing TiN reinforcement. In the current study, with the increase of nitrogen gas pressure and the optimization of routine ball milling parameters, the conventional mechanical ball-milling method can be improved, the nanometers TiH2-TiN composite powder can be synthesized successfully in a shorter time. Nitrogen gas filled in ball mill jar in which the pressure was 0.6 MPa. TiH2 powder was milled under nitrogen atmosphere at a spinning rate of 250 rpm. The results show that the stable TiN is formed after grinding for 2.5 h according to the X-ray diffraction pattern. DSC (differential scanning calorimetry) curves also indicate that milled compound powder adsorbs certain nitrogen gas. The gas adsorbed in TiH2-TiN composite can exist stably below 200 °C.

Mar 1, 2017

By Yuanbo Zhang, Guihong Han, Guanghui Li, Tao Jiang, Zengqing Sun, Yanfang Huang

"Because of small specific surface area and poor ballability, vanadium/titanium-bearing magnetite is difficult for production of oxidized pellet. A novel organic copolymer binder, modified humic acid (MHA), has been authorized recently in China. Effects of the novel MHA binder on the quality of V/Ti-bearing magnetite pellets are studied in this paper. Experimental results show the MHA binder can obviously improve the strength of green pellet. Because of better heat endurance, the MHA binder pellet has a higher strength than Peridur pellet under the same preheating conditions. Moreover, TFe grade of pellet with the MHA binder is much higher than that of the bentonite pellet. The strength of preheated pellet containing MHA binder of 0.25%~1.0% meets the requirements of oxidized pellet production by grate-kiln process. Comparatively, MHA is a promising orgainc binder for iron ore pellets. Its price is only one tenth of Peridur price and about 3 times of bentonite price.IntroductionThe iron-making practices show that the use of pellet is beneficial to blast furnace life, productivity and fuel savings. Therefore, many iron-making plants have expanded the production of oxidized pellets in order to meet the needs of modern large-scale blast furnaces [1]. Presently, bentonite is widely used to improve the quality of iron ore pellets. The negative effects of using bentonite include decreasing total iron (TFe) grade and degrading the metallurgical properties of the final products [2, 3]. Many studies, therefore, have been conducted on the application of organic binders to overcome the weakness of the inorganic bentonite. In comparison with inorganic binders, one of the biggest strengths of organic binders is low residual silica content [4]. However, those studies showed that the economics of foreign organic binder addition into pellets was not attractive. For example, the compression strength of preheated pellets and roasted pellets are both too low, resulting in powder generation and ring formation in the industrial rotary kiln [3, 4]."

Jan 1, 2011

By John J. J. Chen, Barry J. Welch

"As in many industrial processes, the detailed mechanisms involved must first be understood before being able to redesign, or to carry out improvements or optimisation of the process and equipment performance. In a great majority of metallurgical processes, visual observation and actual measurement of process variables are either very difficult or near impossible. Often, the cost and effort involved are prohibitive. Consequently, physical modelling is often used to provide some understanding of the process and for the validation of computer numerical models. In this paper, we summarise some of the work carried out at The University of Auckland on the modelling of the Hall-Héroult electrolytic cell, the in-line melt treatment process, and the steel casting tundish. IntroductionIn any industrial process, it is essential to understand the underlying mechanisms before any optimization or process improvement can be carried out. In many metallurgical operations, the processes are conducted at elevated temperature and under rather hostile environments. Consequently, it is often difficult, and sometimes impossible, to observe the actual processes occurring, or conduct measurements which are pertinent. In some situations, it is possible to formulate mathematical equations purported to describe the process, and obtain the solutions numerically. However, in this latter case, the validity of the simplifying assumptions made are often uncertain. Physical modelling may provide the necessary information for the validation of such numerical models. Furthermore, through an application of the principle of similitude, it is possible to apply data obtained from physical modelling to actual metallurgical processes. This paper will summarise some the work carried out at The University of Auckland on the physical modelling of gas-induced flow in the Hall-Héroult electrolytic cell, an in-line melt treatment unit, and the flow in a steel casting tundish.Gas-Induced Flows in a Hall-Héroult CellIn an aluminium cell, the effects due to electro-magnetic forces have been addressed and various design modifications such as magnetic shielding and the positioning of risers have been carried out to control or lninimise the effects of magnetic fields'. Consequently, the effects of gas-induced flows are now becoming significant providing the impetus for the study of the gas behaviour in the bath. Furthermore, the shape and size, and the rate of evacuation of the anodically generated gases affect the cell voltage affecting the energy efficiency; at the same time, the back-reaction between the anode gas and the metal produced is the predominant cause of the loss of current efficiency. Figure 1 shows a cross-section of a conventional cell in which the gas evolution occurs directly under the anodes, and the gas induced flow is confined mainly to the region occupied by the bath"

Jan 1, 1994

By Peter Kettle

This paper describes the performance of the copper industry over a period of some two decades and examines the theme that improvements in operating efficiency have not been matched by improved returns on capital. The financial performance of the copper industry is analysed using CRU's MICA database. Regression analysis indicates a two percentage point increase in operating margins but no increase in returns on capital. The gain in operating efficiency appears to have been mainly achieved in the mid 1980s. The investment boom of recent years has resulted in a rapid increase in the industry's level of debt and gearing ratio (now some 47%). Data on 44 copper mine projects is used to show the linear relationship between scale and capital costs. Typically new capacity costs some US$5,000 /tpy. The relationship between cash costs and capital intensity of projects is also plotted. The greater attention now being focused on efficient use of capital means that capital intensity rankings will become increasingly important in determining which projects go ahead.

Jan 1, 1999