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By W. Keith Buck

This paper defines the discipline of mineral economics. By example, it describes the application of the tools of economic analysis to mineral problems - to problems in the areas of: mineral resource analysis and forecasting, mineral industry activity from exploration to distribution and marketing, mineral commodity analysis, and mineral policy analysis and policy formulation - all in a regional, national or international context.

Jan 1, 1972

By John J. Schanz

INTRODUCTION The two prior Seeley W. Mudd books on mineral economics devoted their final chapters to themes having to do with the future. In 1932, the last chapter in Mineral Economics8 was "The Future Value of Mineral Property" by J. R. Finlay. Both the first edition (1959) of Economics of the Mineral Industries7 and the slightly revised second edition (1964) closed with "Minerals and Man's Future" by Zay Jeffries. We are not inclined in this third AIME volume on mineral economics to ignore the tradition of the prior volumes. Moreover, it always is fitting and proper to close a book about the mineral industries by examining in a rather general way the challenges and uncertainties that are perpetually strewn in our path as we pick our way into the future. Unlike its predecessor volumes, which were written to acquaint the nonspecialist with the economic characteristics of mineral resources and to provide data about the mineral industries, this edition was also designed with the mineral economics student and practicing specialist in mind. Thus it is anticipated that it will be both a reference as well as suitable for use as a textbook. Consequently, this closing examination of our changing perspectives about mineral resources devotes some space to the past events and current status of mineral economics as a field of study. The fears and forecasts of the past can be a perceptive and usually deflating way to begin an examination of the future. As we look up and down the track of time from the 1975 platform, we find that many of the past views of the future were transient in character, others were imperfect in their prognosis, while others were based on fears that now seemed unfounded. But down through the years some of the observations or expressions of concern have a persistency which perhaps reflects some elemental characteristics of mineral resources. On these "truths" rest our contemporary understanding of the economics of the mineral industries. The uncertainties and priorities for the next 25 or more years, not surprisingly, have a somewhat different mix than those that seemed most compelling to our predecessors in 1932 or 1959. So it is appropriate that we review how the perspective of the mineral economist has changed over the span of a half century. In light of the particular interest of AIME on the role technology must play, it is fitting that we close with some observations on that topic. THE EMERGENCE OF MINERAL ECONOMICS AS A FIELD OF STUDY The publication of Mineral Economics by the AIME in 1932 as a Seeley W. Mudd volume marked the end of emerging interest in

Jan 1, 1976

By Elmer W. Pehrson

NINETEEN FORTY-SIX was an eventful year for the mineral industries. Perhaps the most significant development was the socialization of industry in Great Britain, initiated in 1945 but carried to fruition in the coal industry in 1946. On Jan. 1, 1947, management of the coal industry will be vested in a National Coal Board, responsible to the Ministry of Fuel and Power. A sum of £164,660,000 has been provided to compensate private owners for assets transferred to the Board. The British coal industry has been a problem for many years. Production has declined to a point where serious shortages of fuel for domestic needs have developed. Exports have dwindled to a small fraction of the previous trade. Costs have increased greatly, and quality has deteriorated. The industry's physical plant has not kept pace with the rapidly mounting wage scales in recent years. Some claim that the best and most accessible coal reserves of Britain are heavily depleted. The industry has been harassed by difficult labor problems, including bad morale among the workers and a shrinking labor force.

Jan 1, 1947

By Arthur Notman

THE year 1937 started off most hopefully for the metal industry but the prices for nonferrous metals declined after reaching a peak in the first quarter. E. & M. J. average prices for March were: -electrolytic copper f.o.b. refinery for domestic delivery 15.775c., lead 7.19c., and zinc 7.38c. There was the usual talk of shortages and the accompanying peak in the market prices of securities of producing companies. In retrospect it now appears that this was the peak of general security prices as well and of most commodity prices. On Dec. 1 copper was back to 11c., lead to 5c., and zinc to 5.5c. At the same time metal security prices had fallen to less than 40 per cent of their March highs. This has not been a purely domestic phenomenon. Metal prices have followed a similar course in London, in spite of the fact that in all three metals a tariff wall separates the domestic market from the foreign. There is nothing in the record to suggest that planning has so far had any stabilizing effect on prices. It is doubtful whether anybody will he found to claim credit for the planning. Strong evidence supports the conclusion that domestic demand for these and the other metals has been dammed back by the uncertainties confronting those who are considering long term construction commitments. This is particularly true with the public utilities, who are the largest consumers of copper and lead. If the plans were designed to maintain employment rather than to maintain political control of the Government, it would appear that they should be discarded. The course of the steel industry has been followed so closely in the press that no comment is necessary to indicate its similarity.

Jan 1, 1938

By Arthur Notmon

WORLD production of the three major nonferrous metals, copper, lead, and zinc, in 1939 will aggregate about 6,050;000 tons, compared with the all-time peak of 6,237,944 tons in 1937, and the previous peak of 5,679,442 tons in 1929. The United States will furnish 30.9 per cent of the total compared with 30.4 per cent in 1937 and 41.3 per cent in 1929. Table 1 gives the details of the three metals.

Jan 1, 1940

By AIME AIME

FOR the mineral industry, as for many others, the year 1944 brought to fruition the seeds planted in previous war years. Accomplishment in attaining ends in the production of minerals has given more time for the consideration of postwar problems, such as plans for resuming production for civilian uses and measures to prevent possible mass unemployment. The hectic atmosphere in production circles lessened during the latter half of 1943, conditions becoming static during 1944 as peak production rates were reached. Withdrawal of deferment of young men from the mining districts by Selective Service connotes that man power at the battlefronts became more important than the persistence of pressure for metal production. This is in contrast to the return of soldiers in 1943 to augment the labor ranks in the mining districts. The year ended in the midst of changing needs. Over-all metal production in the United States in 1944 will record a lessening, compared with the previous year owing to labor shortages which affected both development work and ore output.

Jan 1, 1945

By Ross R. Bhappu

In 1989, William A. Vogely created the Mineral Economics and Management Society (MEMS). He did this after SME disbanded the Minerals Resource Management Committee, a group dedicated to technical programming of minerals economics and management issues. A few years later, SME reinstated this committee. MEMS held its fourth annual conference "Mineral resources: Managing dilemmas and opportunities," in Boulder, CO March 9-11, 1995. Some of the MEMS programs are similar to the Minerals Resource Management Committee programs. However, MEMS conferences cover more diverse issues. These include minerals policy, environmental legislation impacts on the minerals industry and minerals economics issues. The 1995 MEMS conference included six sessions and three distinguished speaker addresses. Papers topics included US and Canadian mineral policy, financial strategies for managing mining companies, Latin American mineral investment opportunities, quantitative economic modeling and the impact of environmental interest groups on the minerals sector in the United States and Canada. One session was dedicated to students who competed for $1900 in prizes for outstanding papers.

Jan 1, 1995

By Charles H. Fulton

FOR some time it has been thought that there should be > closer relationship between the members' of the Institute engaged in education in the mining schools, the mining, metallurgical, ceramic, and geological departments of universities, and the members of the Institute actually engaged in the production of mineral products and the operation and direction of works. The American Society of Chemical Engineers and the American Ceramic Society have for some years past devoted especial attention to the educational matters of their respective fields. The Engineering Foundation, representing the great engineering societies of the country, is deeply interested in technical education and maintains a Committee on Educational Research.

Jan 1, 1932

By T. R. McMillan, R. D. English

An engineer's education is a lifetime pursuit, a fact which the Society of Mining Engineers of AIME recognizes through its Education Board. Created in 1977 and comprised of six standing committees, the Board addresses several broad areas of responsibility: Continuing education; professional accreditation; statistical reporting; career guidance; scholarships; and educational publications.

Jan 9, 1979

By E. A. Holbrook

AT the meeting of the Committee on Engineering A Education of the Institute at the New York meeting last February, it was brought out that the number of men graduating in mining engineering from our colleges at the present time is not sufficient to meet the ordinary needs of the mineral industries. Following the meeting, Samuel S. Wyer, consulting engineer of the Fuel-Power Transportation Educational Foundation of Columbus, Ohio, prepared a pamphlet called "Mining Engineering's Appeal to High School Seniors." Under the auspices of this Foundation the pamphlet is being sent to every high school in the United States. The pamphlet does not in any way paint glowing word pictures of the profession; rather it is a statement of the importance of mining engineering in our present-day civilization, together with the requirements in young men who are looking forward to an engineering career.

Jan 1, 1930

By William B. Plank

THE growing dependence of our vast industrial civilization (:n mineral products demands today, as never before, the highest technical skill in those who produce these product-;. That the duty of training the engineers, whose responsibility it is to produce these mineral products efficiently and in sufficient amount, falls directly on the schools of mining is beginning to be more fully recognized. The Institute, realizing this fact and that its future membership depends largely on the annual accretion of young men, is showing a keen interest in the problems of the mining schools and in the work of its Committee on Engineering Education. The Committee has, during the past several years, considered the problems connected with the training of men for the mineral industry, whether these have been problems of college training, or placement of the young engineer in the industry, or personnel training after he enters the industry. The field of interest and discussion has been as broad and varied as the mineral industry itself. Coal mining, metal mining and metallurgy have been discussed and the papers on these subjects have been outstanding contributions to the literature on mineral education.

Jan 1, 1931

By Ferron A. Olson

Occasionally it is good to consider the past, assess the present and project the future. Curriculum, enrollment, matriculation of graduates and changes in industry which influence mineral education are all relevant for determining what changes will be needed in educational institutions to support growth and development in the United States. It would appear likely that with environmental pressures, energy needs with present stress in fossil fuels and general societal needs for metals and minerals that mining and metallurgical engineering faces a period of growth and may be on the threshold of a new era with a vitality that has not been enjoyed for several decades. The following information is based on material obtained through questionnaires received from twelve schools accredited in mining or mineral engineering (out of 18 in the U.S.), 2 not accredited and 5 which no longer have mineral engineering disciplines. The schools presented do not include the smaller nor larges of the undergraduate programs in mining engineering.

Jan 8, 1972

By Andrew J. Freyman, George S. Barry

"Mineral endowment in northern British Columbia and the Yukon Territory was assessed on the basis of geological opinion which was gathered in a quantitative framework of subjective probabilities. The survey area encompassed 364,000 square miles and was divided into 310 cells having dimensions of one degree of longitude by one-half degree of latitude. The response solicited related to tonnage, grade and number of deposits of a particular mineral in each cell. The questionnaire sought an expression of mineral endowment down to mine-able depth as distinct from economic expectations. Details on the questionnaire and responses are presented in a series of contour maps on individual commooities, which illustrate the collective occurrence picture of the respondents. The approach is largely dependent on the cooperation of an adequate number of geologists familiar with the region being examined. This approach to an assessment of the mineral endowment of a region has a wide range of applicability, from the focusing of exploration effort to aiding government and development bodies in the formulation of regional strategies and the planning, for example, of road, rail and power facilities."

Jan 1, 1970

By William B. Plank

For the first time in four years the number of mineral engineering students in the 228 engineering colleges of the U. S. and Canada exceeds 10,000. According to figures just released by the American Society for Engineering Education, the current enrollment of all engineering students is 222,178. The total of 10,274 mineral engineering students, undergraduate and graduate, is a 4% pct increase over a year ago. Total engineering is 11 pct larger than last year, about the same as in 1949-50, and 24 pct above 1950-51.

Jan 4, 1955

By Kazimierz St. Sztaba

"Mineral processing – the first technological stage of utilization of mineral – has a very long history. In particular, it revealed and reveals the continuous development and perfection of technological operations and process organization, comprising not only new design solutions and exploitation procedures but also, for example, perfected systems of control and automation as well as methods of process description and result evaluation. During the recent decades the attitude to mineral raw materials was clearly changed, both to the primary ones, i.e. minerals, and to the secondary ones, such as side products and waste, formerly considered useless and at present more commonly used. This results both from the appearance and growth of demand for more and more numerous components of mineral raw materials and also from the necessity of protection of natural resources, constituting the integral part of the system of sustained development of society.These circumstances, and especially the requirements concerning gaining some components which cannot be separated by means of “classical” (used for many years) technological processing operations and aiming at increasing the technological procedures, evoked the necessity of using new technological solutions, applying other basic operations, also the ones characteristic so far for other processing technologies, i.e. chemical, biotechnological and others.These development tendencies, in general commonly perceived, allow us to formulate an opinion that the former state of tasks and processes of mineral processing is being transformed into a qualitatively new form. It can be assumed that this process was signaled by a situation in which, due to the growing role of technological operations based on physicochemical phenomena (flotation and others), magnetic and electrical ones, etc., one should have observed that the former term of “mechanical processing” became inadequate for the real content of the notion determining the discussed stage of mineral utilization, so the adjective “mechanical” disappeared in most languages."

Jan 1, 2003

Mineral exploration is the business of finding and defining ore deposits. Ore bodies are developed into mines and mines supply every mineral and metal upon which our society is built. Whether it be steel for our bridges, cement and aggregate for our concrete, coal for our power stations, copper for our wire, phosphate for our fertiliser or gold for our jewellery it first must he found, then mined and processed before we can use it. There is no other way.

Jan 1, 1993

By Wolfgang O. Gluschke

INTRODUCTION Virtually all countries have general legislation covering most aspects of mining and mineral processing, including investment and tax laws, safety and health regulation, and specific rules applying to exploration reporting procedures. Yet most developing countries negotiate individual agreements with foreign investors for major mineral projects, in particular when all or part of the expected output is exported. Such agreements are known under several different names, as for example concession agreement; technical assistance agreement or service contract; management agreement; production sharing contract; joint venture; or contract of work. The objectives and conditions governing such contracts are as diverse as these titles are. While a mining project is only one among a large mumber of similar undertakings in industrial countries, in most developing countries such projects usually have a dominating position within the country's economy. The general legislation is often inadequate and insufficiently detailed to cover all aspects of large projects with extensive foreign inputs and international markets. Therefore, the need for specific arrangements. Specific arrangements may also become necessary due to the complexity of markets for mineral products, the large number of participants - equity partners, suppliers, financial institutions, buyers, etc. - or economic and political conditions in the host country and fiscal regulations in the home country of the investors. Most agreements are concluded between governments, or government agencies, in developing countries and private industry headquartered in developed market economies - Canada and the United States of America in North America, Western European countries, Japan, South Africa and Australia - or, in some instances, with state-owned firms in these countries. There are fewer agreements between developing countries and the centrally planned economy countries - Eastern Europe and the USSR - which cannot be considered here because of absence of adequate information. Agreements can be concluded at any of the different stages from exploration through closing of a mine. While most contracts are negotiated at the time when a potentially viable ore body has been delineated and investigated sufficiently to anticipate a realistic time for commencement of production, other agreements start with "grass-roots" exploration, during operation of a mine, smelter or refinery or, exceptionally, after a temporary shutdown. While several major provisions are included in all types of agreements, others are covered in much more detail (or not at all) in some contracts reflecting the specific work programme of each project. While it is realized that subdivision and classification of complex contractual relations is necessarily arbitrary to a certain extent, such grouping is useful in practical terms, especially for the non-specialist. The following discussion, therefore, will start with a description of the major forms of contractual relation - concession, investment contract, joint venture, management agreement, service and production sharing contracts. Major issues covered in all, or almost all, agreements will then be dealt with. These include stages of development, corporate structure and control, fiscal arrangements, infrastructure development and environmental law, and dispute settlement and renegotiation. FORMS OF CONTRACT RELATIONS There has been marked change in the type of agreement entered into during the 1960s (and before) and the early 1970s and the period thereafter. While straight "concessions" - granting of exclusive rights to foreign investors over a certain deposit or areas with little restriction or well-defined obligations - were the rule during the first half of this century, more complex agreements have evolved since. Some of these cover every conceivable aspect, foreseen or only possible, and define rights and obligations of all partners to the last detail. Over the years, agreements have without doubt become more beneficial for the developing host countries, in part as a result of well-publicized nationalizations, as for example in Chile, and in part due to changed attitudes in all countries

Jan 1, 1985

By Fredley D. C

Georgius Agricola wrote in De Re Metallica in 1556 that a prudent a miner should not work in a region ruled by a tyrant-a person inimical to mining. In 1926, Associate Chief Sherman of the United States Forest Service in a speech stated, "It is the policy of the Forest Service to encourage the development of the mineral resources within the boundaries of the National Forests ... a man who fails to cultivate a friendly, helpful, cooperative spirit in his relations with those who are endeavoring to develop the mineral wealth of our mountains has no place in the Forest Service." Both statements are as true today as they were in 1556 and 1926. The challenge to the Forest Service and the mineral industry today is to maintain that cooperation in a world that has changed significantly since Agricola and Sherman. The United States Forest Service manages 77,000,000 hectares of land-mostly in the Western United States-an area equal in size to New South Wales. The vast majority-75 million hectares are National Forests, and 1.6 million hectares are National Grasslands. National Wilderness Areas account for 13 million hectares or rough- ly 17 per cent of the National Forest System. National Forest System lands (NFS) are some of the most visible, scenic and controversial lands in the country. They are also some of the most valuable for their mineral potential and production. The value of mineral produced exceeds US$4 billion per year. There are over 1200 producing mines, 15,000 oil and gas leases, and some of the largest lead, copper, silver, gold, platinum, molyb- denum, and coal deposits in the hemisphere. Every year the Forest Service approves nearly 5,000 mineral operations on the NFS. Much of the NFS (75 per cent) is open to location of mining claims pursuant to the 1872 Mining Law. And an equal amount of land is legally available for oil and gas leasing.

Jan 1, 1991

By C. K. Leith

In discussing the subject of mineral exploration, one is tempted to resort to reminiscence. I could tell of many missed opportunities, but I propose rather to outline certain changes in the methods and conditions of exploration which present new problems to the mineral explorers of today. Our subject might appropriately be called The Passing of the Old Time Prospector. The first question that presents itself is whether the job of mineral exploration is not already pretty well finished. The current market surplus of most minerals and the present overcapacity for production, with their attendant financial troubles, naturally raise the question whether the accumulation of reserves has not gone far enough for the present, and whether further exploration should not be left to some future time when consumption shall have caught up. Unquestionably we have gone far in the conquest of our physical environment, and the fear of shortage of minerals is less than formerly. For the time being there is no great need of further supplies for the world as a whole of many of the great essential minerals, coal, oil, copper, zinc, silver, and others. For a few minerals, such as gold and lead, the known future world supplies are not yet large enough. For all minerals the distribution is so unequal among the nations that exploration will continue in deficient areas in the attempt to make nations self-supporting.

Jan 1, 1932

By Colin E. Dunn

Abstract-Plants have a remarkable ability to select, use and store metals derived from the substrate. Each species is unique in its requirements for and tolerances to the full spectrum of chemical elements in the Periodic Table. Studies to define the chemical characteristics of common trees and shrubs of the temperate forest are providing insight to their use for exploration, i.e., biogeochemical exploration. Examples of surveys over gold deposits in British Columbia show the effectiveness of sampling various tissues from different species in a range of biogeoclimatic environments. At the Nickel Plate mine in the Montane-Spruce zone, outer bark of Lodgepole pine was effective in defining a large area of metal enrichment; at the Carolin mine in the zone of Coastal Mountain Hemlock, analysis of twigs of western hemlock and Pacific silver fir provided an exploration target considerably larger than that defined by lithogeochemistry; at the Mount Washington gold deposit in the Mountain Hemlock zone, twigs of mountain hemlock and rhododendron were used to outline the mineralization; and in the Interior Douglas-fir zone at the QR deposit analysis of Douglas-fir tops collected by helicopter provided a rapid and effective method of identifying a gold-rich area.

Jan 1, 1995