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By K. Hasselwander, K. Knabel

"A significant area of Outotec’s business involves fluidized bed roasting. With several decades of experience, more than 300 reference plants and strong R&D capabilities, the company provides several industries with optimum processing solutions. Applications include oxidation and sulfation of sulfides found in copper, pyrite and zinc concentrates. Gold production and de-arsenifying roasting are also within this scope. This paper describes the latest furnace developments and includes novel trends. Moreover, hot and wet gas cleaning systems are examined focusing on unit operations related to the removal of components such as dust, SO2 for sulfuric acid production, fumes, halides, Hg, hydrocarbons, nitrous oxides and metals.INTRODUCTIONGenerally, when defining roasting processes, it can be stated that the respective primary pyrometallurgical reaction is exothermic, of gas-solid nature and relates to a value solid product. These processes are a key focus within Outotec’s scope and include: (i) dead roasting (ii) sulfating roasting (iii) partial de-arsenifying roasting and (iv) two-stage, de-arsenifying roasting.Dead roasting involves the oxidation of a given sulfide, thus allowing for a subsequent leaching process, and has been applied to producing ZnO. Dead roasting of pyrite has also been extensively utilized with a primary goal of producing sulfuric acid. In contrast, sulfating roasting involves converting a sulfide to its sulfate, enabling a selective sulfation of components, such as Cu or Co, and their separation from ferrous components during leaching (produced sulfates are soluble). Partial roasting involves partially oxidating the metal sulfide to its oxide with the simultaneous production of gaseous As4O6, which is handled during gas cleaning. The solid product, containing hardly any As, is rich in S and can be fed to a respective smelter (e.g. in the case of Cu). Alternatively, if the production of oxide is required, a dead roasting step is added after the partial roasting step, with the overall process considered as two-stage roasting."

Jan 1, 2012

By R Memary

The environmental and economic impacts of a significant dependence on fossil fuels are affecting the future of sectors such as of mining. These impacts are prompting the Australian Government to seek solutions for reducing its dependence on fossil fuels more generally, such developing clean energy and improving energy efficiency. However, limited research has been undertaken to assess the potential synergies between clean energy and mining in an uncertain global future. This paper analyses current energy use by mining in Australia and reviews the drivers and opportunities for energy efficiency and cleaner energy technologies to be coupled to mining under three future scenarios. Linkages between mining and clean energy are investigated for three global scenarios for mining and metals to 2030, developed by the World Economic Forum (WEF), namely Green Trade Alliance, Rebased Globalism and Resource Security. These scenarios are applied to assess how they could change the barriers, opportunities and trade-offs required for the development of a more sustainable energy sources by the minerals industry in Australia.

Nov 22, 2011

By Elburt F. Osborn

The phrase "Clean Synthetic Fluid Fuels From Coal," implies that it is possible to obtain adequate and dependable supplies of fuel without sacrificing the quality of our air, water, and land. Because of the long lead times needed to develop technical feasibility, into commercial reality, however, vigorous efforts must be made now in order to do it. The available options for clean fuels include many exotic sources, like solar and geothermal power, fuel cells, and thermionic and thermoelectric systems. To solve the energy crisis, however, we have three basic energy criteria-abundance, reliability, and commercial availability by 1985. Only processes based on converting coal and oil shale to clean, synthetic fluid fuels can meet all three.

Jan 9, 1974

People in economically developed societies demonstrate inherent human care for Earth and want to stop pollution. Yet efforts to clean Earth seem bogged in confusion from wildly contradictory and alarmist predictions of æclimate crisisÆ. Supposed experts openly disagree yet weÆre told thereÆs universal agreement humans are causing æthe end of life as we know itÆ. The turmoil combines with peopleÆs feelings of fear, guilt, anger, hopelessness and even resignation and apathy to trigger æclimate alarmÆ. The paper enables people to rediscover clarity, hope and support for Earth by understanding how climate alarm and confusion were created and how they actually increase pollution. Many people seem to think global warming is as serious as pollution and worry that questioning alarm will enable pollution. Yet theyÆre different. We need be even more concerned about climate alarm because history shows repeatedly that when buried by ignorance and panic real problems grow overwhelming. Environmental credibility is endangered by confused politicians and sensationalist media. When weÆre willing to re-evaluate what weÆve been told we replace fear and confusion with facts and freedom to identify opportunities. Combining this with practical understanding of human behaviour and leadership enables opportunities to be identified and action taken. The paper shows how confident, informed leadership leads and supports higher productivity and effective care for the natural environment.

Jan 1, 2009

By Nathan P. Schmidt

Climate and hydrology data are required during all phases of mining projects, including impact assessment, mine planning and design, operational water management and mine closure and reclamation design. In the Canadian north, data sources are spatially sparse and often short-term in nature, and design parameters are often estimated based on data collected at sites far distant. Confidence in such data can be increased by verification or modification using data collected during properly implemented baseline and operational monitoring programs. A data set that accurately reflects conditions at the project is more readily accepted by regulatory agencies during the permitting process, and allows development of more effective and economic water management, mitigation measures and compensation. Data requirements and collection methods for developing an adequate data set for mine development are reviewed. These are illustrated using examples from oil sands, diamond and metal mines in the Canadian north.

May 1, 2004

By Henry Hengeveld

Are the IPCC results credible? The most recent IPCC assessment is??an admirable summary of research activities in climate science? US National Academy of Science 2001 report to President Bush Joint statement by Academies of Science from 17 other countries ? May 2001 ?The work of the?IPCC represents the consensus of the international science community on climate change science. We recognize IPCC as the world?s most reliable source of information?and endorse its method of achieving this consensus.?

Nov 1, 2002

By L. Schernikau, W. H. Smith

Oil, coal, and gas account for approximately 80% of global primary energy, but only a portion of total airborne CO2 eq (approx. 35% at GWP20 to 65% at GWP100), even though they account for 95% of total measured CO2 emissions. The benefits of these energy sources, as well as their related costs, are not all incorporated in current energy policy discussions. Global greenhouse gas policies must include documented changes in measured airborne CO2 eq to avoid spending large amounts of public funds on ineffective or sub-optimal policies. The authors examined airborne CO2, which is less than half of emitted CO2, as well as reported CH4 emissions and the global warming potential of CH4 as published by the IPCC for coal and natural gas. The surprising conclusion is that surfaced-mined coal appears ‘better for the climate’ than the average natural gas, and all coal appears beneficial over LNG. Therefore, current CO2-only reduction policies and CO2 taxes are leading to unintended consequences and the switch from coal to natural gas, especially LNG, will not have the desired impact of reducing predicted future global warming; in fact, quite the contrary. A large portion of anthropogenic global warming is attributed by the IPCC and IEA to CH4, but it must be noted that CH4 emissions from natural sources and from agriculture account for approximately 40% and 25% of annual global CH4 emissions respectively. Energy accounts for about 20% of documented CH4 emissions. CO2 contributes only approximately 35% of annual airborne anthropogenic GHG emissions after accounting for CH4, over a 20-year horizon. At a 100-year horizon, the contribution of CO2 increases to approximately 60%. Energy policies that do not consider all GHG emissions along the entire value chain will lead to undesired economic and environmental distortions. All carbon taxation and CO2 pricing schemes are incorrect and need to be revised. At IPCC’s GWP20 an approximately 2%1 higher loss of CH4 across the value chain prior to combustion of natural gas versus coal will lead to ‘climate parity’ of coal with natural gas. According to public data, natural gas value chains have high CH4 and undocumented CO2 losses. On a global average, using only IEA-documented CH4 data, natural gas emits approximately 15% more CO2 eq than surface-mined coal, over a 20-year horizon. This difference will increase as the use of shale gas and LNG expands. Investors should support all energy systems in a manner that avoids an energy crisis, including intermittent renewable energy systems where they make sense. If CO2 emissions need to be reduced, one of the most effective ways would be to install ultra-supercritical power plants with CCUS technology. However, the undisputed benefits of increased CO2 concentrations in the atmosphere because of its promotion of photosynthesis and plant growth effects (fertilization) need to be considered in energy policy decisions as well. The authors suggest that future research and development should concentrate on reducing net emissions from fossil fuel power plants and providing cost-effective and reliable new conventional power generation capacity, utilizing clean coal and clean natural gas technology.

Mar 2, 2022

By M Grigorescu, J H. Hodgkinson, H Alehossein

A new framework that collates and interprets pre-existing data to assess vulnerability and ultimately plan to avoid or minimise flood-related risk to infrastructure, people, downtime, environment and revenue has been developed. The æClimate Related Adaptation from Terrain Evaluation ResultsÆ (CRATER) method tested at a coal mine in Queensland, provides semi-quantitative information to assist decision makers when designating investment for minimising vulnerability of mining operations to climate. Here we present the processes involved in this three-step approach that uses pre-existing spatial data of the mine site and local knowledge to build a set of visual tools to assist decision-making. The first step of the process is performing multi-criteria evaluation (MCE) within a geographic information system (GIS) on ranked natural conditions at the mine, such as elevation, slope, drainage, soil and vegetation, which is performed to identify critical flood areas. Secondly, a fault-tree analysis identifies how impact can occur and what options there are for impact reduction. Finally, a resource assessment of the mineÆs capacity to adapt reduces the adaptation options to those most suited to the mine. The results are confidential, but for the purpose of introducing the methodology, we present simplified results, particularly of steps 2 and 3. CRATER can also be used for future æwhat-ifÆ flooding scenarios to identify the most suitable locations for roads, buildings or other critical infrastructure. The methodology is transferable to any mine, series of mines or locations along the mining value chain that have sufficient data, providing a practical decision-making tool to identify æno-regretsÆ actions that not only could reduce downtime after or during an event, but in some cases may enhance production between extreme events. We now plan to test this method at a broader scale, to encompass more than one mine in the analysis.CITATION:Hodgkinson, J H, Grigorescu, M and Alehossein, H, 2013. Climate Related Adaptation from Terrain Evaluation Results (CRATER) - interpretation of pre-existing data for mine site flood vulnerability and management, in Proceedings Water in Mining 2013 , pp 259-266 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

In the grand scheme of things, the 9.5-t (21,000-lb) shipment of molybdenum concentrate that left Freeport-McMoRan?s Climax Mine site on May 10, 2012 was not unlike the thousands of others that have been hauled away from the site during the last century, except for the fact that this shipment marked the official rebirth of one of America?s greatest mines. For nearly two decades, 17 years to be exact, there was no production from the mine that was once the largest underground mine in the world and was so important to the Allies? effort during World War II that it was assigned the highest priority of any mine in the United States by the War Production Board. The economic recession in 1980 put an end to the mine?s success, and the Great Recession of 2008 nearly derailed the mine again. But, like the nearby town of Leadville, CO, the mine survived thanks to an investment of more than $700 million by Climax Molybdenum Co., a Freeport-McMoRan company, to bring the Climax Mine back into production.

Jan 1, 2012

By Stephen M. Voynick

Two hours driving time west of Denver, CO and 21 km (13 miles) north of Leadville, Bartlett Mountain rises 4,065 m (13,337 ft) high in central Colorado's Tenmile Range. Bartlett Mountain is one of Colorado's most recognizable peaks, especially when the late afternoon sun casts a surreal, reddish light across its most prominent feature - the Glory Hole. This is a gaping, half-mile-wide, 245-m- (800-ft-) deep crater. Created by subsidence from 60 years of massive underground mining, the Glory Hole is a monument to the Climax Mine, one of the great achievements in American mining and metallurgy. For most of this century, the name Climax has been synonymous with brilliant mining engineering, innovative metallurgical research and entrepreneurial promotion of a once-obscure metal - molybdenum. Climax overcame an array of economic, technological and social problems to become a model for underground development of massive deposits of low-grade ores. It is one of the few mines in the world where cumulative production is measured in the billions of dollars. The Climax mineralization was emplaced 30 million years ago. Magmatic intrusions formed a large, mineralized stockwork within the granite country rock of Bartlett Mountain. Associated hydrothermal events forced superheated metal- and quartz-rich solutions through fracture zones, silicifying the country rock and depositing huge amounts of molybdenite, or molybdenum disulfide. The mineralized rock, a light gray, finely crystalline, silicified granite, is laced throughout with blue-gray quartz veinlets containing molybdenite. Although the richest ores graded only about 1% molybdenite, the Bartlett Mountain deposit contained more than 2.7 Mt (3 million st) of elemental mo- lybdenum.

Jan 1, 1997

At many locations in Australia the decommissioning of mining operations will require the disposal of excess water. If the water is contaminated its disposal may be restricted by government guidelines. The timing of water disposal may be critical to the schedule of close-out. The uncertainty of the annual rainfall input to the water storage and disposal system may determine the success or failure of close-out. The uncertainty associated with any outcome can be used to determine the reliability of the system, or inversely its risk. The technique of Monte Carlo simulation, using the uncertainty in annual rainfall, is applied to quantify the risks associated with water disposal as part of the requirements for close-out in two case studies. In both case studies it is assumed that water disposal is via evaporation only. The first case study is the Nabarlek operation, located about 270 km east of Darwin. This project is required to complete the engineering work associated with its close-out by December 1995. The second study investigates the situation of close-out for the Ranger Uranium Mine, about 250 km east of Darwin. It should be noted that the Ranger mine was examined as part of the annual update of its contingency rehabilitation plan and the probability of implementing the plan is extremely small. The probability of success for the Nabarlek case varied from less than ten per cent to greater than 95 per cent depending on the management strategy. Four possible strategies were investigated for the Ranger mine with the chance of success varying between 20 and 95 per cent. The estimation of the evaporation rate and the area allocated to evaporation was critical in both cases. By applying seasonally based evaporation pan coefficients determined on site, rather than an average monthly value of 0.75, the chance of success was improved by up to 35 per cent for Ranger. Simulation modelling is able to provide information on the likely response of mine water management systems and the level of risk. This information is required to efficiently plan and manage the disposal of water for close-out.

Jan 1, 1994

By Wujian jun

In the process of wire rod production, the rolled wire products must be cooled from the red-hot state to the normal temperature state. How to cool the wire rod after rolling is one of the key links of product quality control in the whole wire rod production process. In this paper, combined with the closed-loop transformation project of controlled cooling temperature of Xuanhuan iron and steel group co., LTD., the closed-loop related controlled cooling equipment (including water cooler, valve table, etc.), nozzle layout and process layout of water tank, and closed-loop software control system of controlled cooling temperature of high-line are analyzed and designed. Closed-loop system design USES temperature of cooling water cooling and water cooling two temperature closed loop regulating circuit, through temperature feedback and feedforward to achieve the uniformity of temperature adjustment, in order to prevent occur due to temperature closed loop control function with the phenomenon of a steel before and after the temperature difference is bigger, system Settings have "absolute temperature regulation" and "relative temperature regulation" selection mode. The system has a self-learning mode, which can modify the temperature feed forward formula. In addition, this paper takes the hard wire 82B rod as the test object, and studies the process parameters and the comprehensive mechanical properties of the rod before and after the water cooling system reform. The research results show that the temperature closed loop system, can ensure the rolled piece temperature control precision of plus or minus 10℃, enhances the stability of wire rod cleaner performance. It can reduce water consumption by about 186m3/h and improve the utilization rate of cooling water.

Oct 1, 2019

By Terry A. Kirk

"This paper describes Derrick High Frequency Vibrating Screens and their process performance in grinding circuit applications. The benefits of screen sizing in closed circuit grinding are illustrated by case histories from a wide spectrum of mineral industries.INTRODUCTIONHigh capacity, reliable wet screening equipment is increasingly in demand by the mining and allied industries for separations finer than 1/.7 5mm (I/ mesh). The continuing search for improved energy efficiency and reduced steel consumption in comminution has Jed to greater scrutiny of every aspect of circuit design and operation, including the classifier efficiency (selectivity) function.Derrick Manufacturing Corporation has been developing high frequency screening machines designed specifically for grinding circuit applications since 1973. Successful installations are currently operating in iron ore, copper, coal, uranium, phosphate and other extractive industries."

Jan 1, 1984

By S. C. Essack

"Tenova Pyromet has designed a slag flow control valve that throttles the flow of slag in order to control the tapping rate. In addition, the valve has proved to be a reliable tool for closing the furnace during normal operation as well as emergency conditions. The valve makes use of a water-cooled copper element that is hydraulically operated and attached directly to the slag tap-hole. The equipment is compact, simple to maintain, and cost-effective to purchase and install. It can be retrofitted to most existing slag tapholes with minimal modifications.During the development phase, finite element method (FEM) and computational fluid dynamics (CFD) software was extensively used to model predicted operating conditions and to optimize the design. By using CFD, it was possible to understand the flow patterns inside the copper and to optimize these to improve overall performance.The slag valve was installed and commissioned in 2011/2012 on a 12 MW furnace as part of a new mineral wool plant in the USA. It has performed well since its installation despite operating under conditions in excess of the original design criteria. During the first 6 months of operation it quickly became the preferred method of closing the furnace, although the design intent was for occasional use during emergency shutdown conditions only. Since replacing the mudgun as the main method of closing the tap-hole, a few minor changes have been made to the installation in order to cope with the increased heat load and much higher frequency of use."

Jan 1, 2014

By H Jones

Closure cost estimates may be generated at any stage of a mining operationÆs life; commencing with the initial prefeasibility studies and continuing through to the final decommissioning cost estimates. However, not all mine closure cost estimates are necessarily the same. Cost estimates will vary depending on the purpose for which they are prepared, the organisations requiring or undertaking the estimate and the stage of the mining operation. Different organisations can legitimately arrive at disparate cost estimates for closing the same mine because the organisations have different reasons for requiring the estimates. Another, equally valid, reason for potentially wide variations in cost estimates by different organisations on the same mine site is the different definitions of æclosure costsÆ used by different estimators. This paper considers the different approaches by different organisations including operating companies, government authorities and financial organisations and uses a hypothetical example based on practical experience to illustrate some of these differences in estimation methods.The paper suggest that a more consistent approach to closure cost estimating in the Australian mining industry would assist mining companies, governments, the accounting industry and the broader community to better understand this complex component of mine planning. One possible approach to closure cost estimating is briefly outlined.CITATION:Jones, H, 2012. Closure cost estimation - All things to all men?, in Proceedings International Mine Management 2012, pp 115-124 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By Cary Hirner, Sarah Lothman, Chris Mueller, Savita Schlesinger, Mike Hanna, Ian Fitz-James

Loudoun Water is currently implementing a quarry to reservoir conversion that will improve water supply reliability in periods of drought and flexibility in water supply operations when turbidity in its Potomac River supplies are high. The Milestone Reservoir Project consists of an inter-tie to the existing Potomac River Pipeline; new pipeline and tunnel; and a pumped intake and outlet works. Planned construction involves significant risks due to underground conditions which includes hard, igneous rock and high groundwater at the creek crossing. In addition, the site is constrained by Goose Creek, an adjacent residence, active mining in a quarry next to the new reservoir, public use of adjacent park space, and the Washington and Old Dominion Trail. Working with these constraints will require close coordination with active mining operations and public and private property owners. Safety of personnel involved with construction also represents a concern with quarry high walls over 30 meters in height near the planned construction. In consideration of key projects risks, Loudoun Water determined that an innovative CMAR delivery approach provided the best opportunity to achieve its goals in quality, innovation, front-end cost and schedule certainty, and operational flexibility and reliability. What matters most to Loudoun Water is the value in having a builder participate in the design process where key decisions can be made based on consideration of risks, cost, schedule, quality, and operability and maintainability of the system. While a progressive design-build delivery model may have produced similar outcomes, Loudoun Water had already invested in substantial development of the design for the work, and ultimately, CMAR provided Loudoun Water the opportunity to retain the partnership with the design team while gaining valuable input from a contractor. Among the challenges with CMAR in the Commonwealth of Virginia is a substantial limitation on self-performance corresponding to 10 percent of the construction value of the work. A significant industry outreach program was initiated by Loudoun Water to encourage participation with incentives in contract terms that allowed for the CMAR Contractor to make a reasonable profit. This paper reviews the CMAR procurement process and discusses contract incentives that were adopted to promote the work within the constraints of contract law in Virginia.

Jun 13, 2021

By L. Yuan, J. Qin, J. Xie, Q. D. Qu, Y. P. Liang

"This paper presents key outcomes of a major Asia-Pacific Partnership project between the Commonwealth Scientific and Industrial Research Organisation and Huainan Mining Industry Group Co. Ltd. to develop and demonstrate advanced technologies at Pansan mine, Huainan, China. A comprehensive approach assessed fundamental strata and coal seam methane conditions during mining and optimized mining sequences and coal mine methane capture systems. The project demonstrated a practical approach and procedures for advanced coal and methane co-extraction systems, improved mining safety and efficiency, increased methane capture and use, and reduced fugitive methane emissions.RÉSUMÉ Le présent article donne les principaux résultats d’un grand projet de partenariat Asie- Pacifique entre le CSIRO (Commonwealth Scientific and Industrial Research Organisation) [Organisation de recherche scientifique et industrielle du Commonwealth australien] et le Huainan Mining Industry Group Co. Ltd.; ce projet cherche à développer et à démontrer des technologies avancées à la mine Pansan, à Huainan, en Chine. Une perspective globale a évalué les conditions fondamentales des strates et du méthane dans les couches de charbon durant l’exploitation et a optimisé les séquences d’extraction et les systèmes de captage du méthane dans les mines de charbon. Le projet a permis de démontrer une approche pratique et des procédures pour des systèmes avancés d’extraction conjointe du charbon et du méthane, pour améliorer la sécurité et l’efficacité minières, accroître le captage et l’utilisation du méthane et réduire les émissions fugitives de méthane."

Jan 1, 2015

By K. Isaac, S. O. Bada

This research focuses on the co-firing of discard coal with refuse-derived fuel (RDF) to utilize this abundant resource in South Africa for energy generation and reduce the volume of waste disposed of at landfills. The potential of a coal with a high ash content (> 40%), which is a grade used in some power stations in South Africa, and its combustion compatibility with two different RDFs in terms of emission reductions has been established. Gaseous emissions and ash residues from the combustion and cocombustion of the coal, two different RDFs and coal/RDF blends of different proportion were analysed. One of the RDF samples contained mostly paper (PB) and the other mostly plastic (PL). Co-combustion ash from the discard coal and RDFs showed a decrease in chloride and alkali metal contents as the coal ratio in the blend increased. The slagging propensity of the co-fired blends was found to be very low, while the propensity for fouling decreased from high to medium for all the blends with < 75% RDF. Cocombustion of RDF with coal showed a decrease in SO2 emissions from 387 ppm (discard coal) to 50 ppm for the sample containing 25% coal discard plus 75% PL. A 15% PL to 85% coal blend also reduced NOx emissions from 145 ppm (100% PL) to 88 ppm. The lowest CO2 emission observed was 6000 ppm for the blend of 85% discard coal plus 15% PB. It was established that the most favourable fuel blend that can produce the lowest sulphur emissions if used for power generation is the 25% coal discard plus 75% PL sample.

Aug 2, 2022

By E. S. Schubert

Keywords: co-generation, furnace CO-gas cleaning, disintegrator scrubber, Theisen In a closed, electric, reduction furnace, no oxygen enters the furnace from the surrounding environment. The off-gases are thus not ?burnt? and therefore contain a considerable amount of CO and H2. Traditionally these gases have been captured and burnt in a flare stack. Recent developments have led operators of such furnaces to revise this strategy and to consider utilising these gases as a fuel for gas-fired generator sets to produce electricity, thus becoming more energy efficient. On 31 March 2010 the new emission standards, in accordance with the Air Quality Act, Act 39 of 2004, were promulgated. The minimum emission standards according to the act require that the particulate matter emissions from the primary fume-capture systems on closed furnaces for ?new plants? in ferroalloy and calcium carbide production not exceed 50 mg/Nm³ and 25 mg/Nm³, respectively. By implementing co-generation, the producer automatically complies with the new environmental emission standards for an off-gas. As much as 30% of the electrical power cost, which is set to double in the near future, can be saved by partly generating one?s own electrical power. In December 2010, the National Treasury published a discussion paper for public comment, one entitled ?Reducing greenhouse gas emissions: The carbon tax option?. Irrespective of how the tax is finally implemented, it will result in an increase of production costs in affected industries. This paper focuses on the characteristics of a furnace-off-gas cleaning system for closed ferroalloy smelters, characteristics that meet the requirements of both reducing solid-matter emissions and operating a safe and reliable gas plant.

Jan 1, 2011

By Marshall Pease, R. J. Brandon

A UTILITY that has a large consumption of coal must insure an adequate and sound supply of fuel. The Detroit Edison Co., which has an annual coal consumption of about four million tons and spends approximately $32 million a year for coal, including freight charges, has developed a program for fuel procurement and for evaluation and selection of fuel for reliable and efficient plant operation. Fuel Procurement Coal Purchasing Division: The Fuel Supply Div. of the Purchasing Dept. combines all of the procurement functions in one group, which must maintain adequate stocks of fuel. In addition to its usual purchasing duties, the division also governs transportation, follow-up, invoice and freight bill, in cooperation with the Accounting Dept. The Fuel Div. is comprised of the fuel agent, an assistant fuel agent, a coal buyer and five coal clerks, who follow the movement of each car, initially approve freight bills and invoices, and file claims whenever there is a shortage of one ton or more. The fuel agent reports directly to the purchasing agent of the Company, and all major programs are planned jointly with the chief purchasing officer. The apparent individuality of the fuel section is necessary because of the tremendous volume of coal cars handled each day, sometimes as many as 500, which must be handled promptly to complete the fastest possible move from the mines to the plants. Determining Annual Coal Volume: Through the combined studies of a Production Dept. Load Committee and the Controller&apos;s office, accurate predictions of coal requirements for any given year are provided the Fuel Dept. from 12 to 15 months in advance. This is divided into the requirements of all individual power plants and central heating plants. This in turn determines the quantity and quality for plants whose specific fuels vary with the type of equipment installed. In the Detroit area, which has a high industrial load, early estimates of annual coal consumption usually are resolved at the end of the year within 4 or 5 pct of the original plan. Operating in a highly developed industrial area eases the task of estimating primary output; and, with the residential demands increasing in a steady and fairly well-defined pattern, the overall coal schedules are not subject to radical changes during any given year. Selecting Suppliers: At any time, but especially during or before an emergency, the coal supply factor must be made secure. This is particularly true in the procurement of utility fuel. There are always extreme quantities of so-called "bargain" coal available during the buyers&apos; markets, such as recently prevailed. These opportunistic offerings may be considered a means of averaging down overall price, rather than as a steady and dependable supply source. Coal is purchased on contract from mine operators and sales agents who have proved reliable. They are not opportunists who desert for higher dollars in times of duress; they do not fail to fulfill contracts when markets rise or overship when markets dip. The progressive operator today who is willing to expend capital to improve quality and service deserves much more consideration than a matching of short-term pennies. When a company has a high volume of annual needs, all phases of the mine supply must be considered. The mine must be able to produce the quality required at a fair price and be able to sell oversizes of coal in enough volume to screen sufficient nut and slack. It must crush coal and sell mine run at prices in line with competitive nut and slack and be willing to do so when there is no demand for prepared sizes. Determining Price: The public utility is in direct competition with any of its customers who can, if savings are guaranteed, generate their own power. Today, to a greater extent than ever before, private industry must do a better overall job than Government-controlled operations. The price of coal must be realistically balanced with the price paid by almost all industries and the railroads as well. The supply-demand ratio in coal is not difficult to discern. There is access at all times to Govern-

Jan 1, 1952