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On April 5, the potlines at Consolidated Aluminum Corp.'s 35,000 ton-per-year primary aluminum smelter at Lake Charles, La., were frozen when natural gas lines were accidently cut by a dredge. Full production is expected to resume in 3 to 4 months. Three primary aluminum producers announced plans to restore much of the idled capacity in the Pacific Northwest as a result of a special power allocation by the Bonneville Power Administration. Reynolds Metals Co. planned to bring a total of 40,800 tons per year of capacity back onstream at Troutdale, Oreg., and Longview, Wash. The Aluminum Company of America (Alcoa) will restart half of a 23,500 ton-per-year potline at Vancouver, Wash. Kaiser Aluminum & Chemical Corp. planned to restart a 27,500 ton-per-year potline at Mead, Wash., and to bring an additional 10,000 to 20,000 tons per year back onstream at Mead and Tacoma, Wash.

Jan 1, 1980

Since March 28, domestic producer prices on 99.5 percent aluminum ingot have been at 5l¢ per pound. Dealers in this same time frame have held ingot quotes at 49¢-50.5¢ per pound. COBALT: Imports from southern Africa in 1976 constituted 73 percent of total cobalt imports. Moreover, the United States is 98 percent dependent on imports of cobalt. For this reason, the Bureau of Mines is closely monitoring developments abroad to ensure an advance notice of any possibility of a shortfall in supply. Included in these imports were those from Zaire (41 percent directly from Zaire and 15 percent via Belgium-Luxembourg), Zambia (11 percent), and Botswana (6 percent). Also being closely watched are industry stocks.

Jan 1, 1977

During the period January 1, 1977 through July 31, 1977, 5 percent (264,000 tons) of U.S. capacity was closed due to power curtailments in the Pacific Northwest because of the shortage of water. During July, one plant in Tennessee cut production by 50,000 tons annually due to a power reduction by the Tennessee Valley Authority. Full capacity production was resumed at a West Virginia smelter during September. If demand for aluminum is strong it seems likely that aluminum supply during the remainder of 1977 and in 1978 will be tight. The price was increased 3¢ per pound to 51¢ per pound effective March 28, 1977, and by an additional 2¢ per pound to 53¢ per pound, effective July 5, 1977. New projects and expansion of existing facilities are planned by Australian aluminum companies over the next 2 to 3 years. The companies listed have committed themselves to spending approximately A$801 million: Alcoa of Australia Ltd. -New alumina plant at Wagerup, south of Perth. Darling Ranges bauxite is located near the proposed project. A$650 million. Coma 1 co Industries Pty. Ltd. -Increase bauxite mining capacity and upgrade or replace other facilities at its Weipa mines on Cape York Peninsula region of Northern Queensland. A$81 million. Alcan Australia Ltd. -Expansion program that will increase capacity of the Kurri Kurri aluminum smelter north of Sydney about 50 percent, and improvement of other facilities at the plant. A$70 million.

Jan 1, 1977

U.S. producers for more than 5 months have priced 99.5 percent primary aluminum ingot at 486 per pound. Sales by independent dealers in this same period reportedly declined by 0.5$-2.5$ to 43.50- 44.56 per pound. CADMIUM: U.S. producer-published cadmium prices for the last 5 months have been at $3 per pound. Dealer quotes in the same period fell by almost 504 and ranged from $2.45 to $2.55 per pound.

Jan 1, 1977

At the end of August, U.S. producer posting of 99.5 percent unalloyed aluminum had been established at 48¢ per pound. At that time, dealer-quoted unalloyed ingot was reportedly at 44¢-47¢. CADMIUM: By late August, most U.S. producers had raised cadmium selling prices by 25¢ to $3 per pound. As a consequence, dealer quoting of cadmium ranged from $2.95 to $3.05 per pound. COAL: The wildcat strike, which began in southern West Virginia on July 19 and eventually spread to nine other States before ending on August 13, at its peak, idled approximately 115,000 miners and accounted for daily coal losses of an estimated 1.5 million tons at the height of the work stoppage. Concerned about the effects of the production cutbacks, the Bureau of Mines, early in the strike period, initiated its coal strike monitoring system which it had developed during the prolonged coal strike in the fall of 1974.

Jan 1, 1976

The Aluminum Co. of America raised its 99.5 percent unalloyed aluminum ingot selling price in March by 34 to 514 per pound. Other producers, including Kaiser Aluminum and Chemical Corp. , Anaconda Aluminum Co. , and Reynolds Metals Co., followed Alcoa's lead, raising their quotes to 51$. In late March, domestic merchants quoted ingot at levels ranging between 49.56 and 50.50 per pound. BISMUTH: Several domes tic dealers lowered their bismuth prices in recent weeks by 50t-606 to within a range of $5.60-$5.75 per pound; producers continue to hold published prices at $7.50.

Jan 1, 1977

Throughout October, U.S. producers priced unalloyed 99.5 percent aluminum ingot at 53¢ per pound. Dealers, in last month's domestic market, were quoting unalloyed ingot at a range of 45.5¢-46.3¢ per pound. Costa Rica recently issued a proposal to Japanese aluminum smelters to participate in an integrated aluminum-refining project which would include bauxite development. The project reportedly would include a 600,000-kilowatt hydroelectric power station, a 600,000-metric-ton-per-year alumina plant, and a 300,000-ton-per-year primary aluminum smelter. Two U.S. firms--Aluminum Co. of Amerjca (Alcoa) and Martin Marietta Co.--and several European aluminum smelters are also said to be interested in taking part in this project. Alcoa conducted a feasibility study for the Costa Rican Government in 1970 and estimated the bauxite reserves to contain 150 million metric tons.

Jan 1, 1977

Since early July, domestic producer listings in primary aluminum ingot have been at 53¢ per pound. Dealers, however, lowered their August quotes by 1.8¢-2¢ to 47.5¢-48¢ per pound. BITUMINOUS COAL AND LIGNITE -The wildcat strike of UMWA coal miners which began on June 23 in protest of cutbacks in medical benefits appears to have ended. According to the West Virginia Coal Association on September 7, 1977, all mines in West Virginia were back in operation on September 6 and again on September 7. The Kentucky Coal Association reported approximately 2,500 miners were on strike in eastern Kentucky on September 6, but there was full employment on September 7.

Jan 1, 1977

The extremely cold weather and heavy snowstorms of January and February in northeastern Pennsylvania--with frozen mining equipment, diminished preparation and lack of railroad cars--severely hampered the production and distribution of anthracite. As a result, the previous estimates for the 2 months have been revised. On March 1, 1977, at the Porter Tunnel of the Kocher Coal Company at Tower City, Pa., an underground flash flood, which apparently broke through the wall of an adjoining abandoned shaft, swept through the mine. As of March 9, 1977, four miners were reported killed, three injured, and five trapped in the wreckage. The Kocher Coal Company began operations at the Porter Tunnel in 1968 and has had no fatalities until this current tragedy. The mine employs 20 persons on the surface and 115 miners underground, producing 750 tons of coal per day. Of the 109 underground mining operations in the anthracite region, this is the one remaining large mine that employs over 100 men.

Jan 1, 1977

A new mine has begun production of antimony ore and concentrates in Serbia, Yugoslavia. The mine is operated by the mining and metallurgical enterprise "Aajaca." Initial production is running at approximately 45 thousand tons of ore per year, yielding about 1,500 tons of concentrate. The mine is located on the mountain Kopaonik-Raiceyoj Gori. It is planned to expand production eventually to approach the level of 300,000 tons of ore per year. This level will be a significant addition to the world supply of antimony and will place Yugoslavia among the world's major producers. Currently the United States produces only about 6 percent of its primary requirement for antimony. COBALT -Anglo American Corporation, Ltd. reportedly is considering restarting the Tenke-Fungurume copper-cobalt project in Zaire. Construction on the project was suspended in January because of inadequate financing and political uncertainties. Technical feasibility and financing on a smaller scale than previously envisioned are now being considered. However, an increased copper price may be necessary before any decision to proceed is made.

Jan 1, 1976

The Particulate Mineralogy Unit has been established at the College Park, Maryland, Metallurgy Research Center. The Particulate Mineralogy Unit will have the responsibility within the Bureau of Mines for the characterization of particulate minerals which have potential for adverse environmental effects. The Unit will provide a focal point for identifying particulates in connection with environmental problems related to the activities of agencies such as OSHA, HEW, EPA, and MESA. The Particulate Mineralogy Unit is seeking to clarify the ambiguities surrounding the mineralogy of and terminology used for asbestiform minerals and other mineral particles. The Unit?s investigations of the morphology, composition, and structure of asbestiform minerals and their nonasbestos analogs have made its members recognized experts in this field. The information which it develops on the characterization of asbestos and other particulate mineral forms such as silica should provide a technically rational basis for decisions by regulatory agencies. Those desiring further information, contact Dr. W. J. Campbell, Program Coordinator, College Park Metallurgy Research Center, College Park, MD 20740, telephone: 301-344-4014. ALUMINUM: For over a month, domestic producers have priced 99.5 percent grade primary aluminum ingot at 48¢ per pound. In the same period, merchants raised ingot quotes by 1.5¢-2.5¢ to a range approaching 44¢-47¢ per pound.

Jan 1, 1976

Wildcat strikes in the Appalachian coal fields, primarily in West Virginia, have resulted in an estimated 4.5 million ton loss in coal production during July and through the first week in August. Since then, the strike intensified further, and on August 9, nearly all of West Virginia's 60,000 miners were off the job with another 10,000 miners on strike in eastern Kentucky. The Bureau of Mines estimates that West Virginia's coal output is currently (8/9) eight million tons below last year when the state produced 108 million tons. West Virginia, the Nation's second largest coal producer of coal behind Kentucky, has not failed to mine over 100 million tons a year since 1938. At the end of the second week in August, nearly all coal miners in West Virginia remained out. The strike is a protest against a cutback in union health and retirement benefits. An announcement June 23 about the United Mine Worker's health and retirement fund precipitated the strike, Fund directors said that because of inflation and production losses caused by earlier wildcat strikes and the severe winter, miners would have to pay the first $250 of hospital costs and 40 percent of doctor bills, up to $500 a year. Previously, the funds paid all hospital and doctor bills. According to the West Virginia Coal Association each day of the strike in West Virginia results in a loss of coal production of 500,000 tons, a loss of $3.8 million in miners wages and $1 million in contributions to the UMWA's health and retirement fund.

Jan 1, 1977

The revised estimate of coal production in January 1977, is 39 million tons -- down 12 mi 11 ion tons compared with production in January of last year, largely as a consequence of the snow storms and cold. The major coal-hauling railroads operating in Eastern and Midwestern States reported to the Bureau of Mines that they loaded approximately the same number of cars for the week ended February 5, as in the preceding week. The Bureau of Mines estimates that U.S. coal production for the week ending February 5, 1977, was approximately 8.5 million tons, or nearly 3.5 million tons less than production for the corresponding week in 1976. Coal production from January 1 - February 5, 1977, was approximately 47.8 mi 11 ion tons compared with production of 63.5 million tons for the corresponding period in 1976. As of the first week in February, river and truck shipments of coal in the Eastern U.S. were about one-half of the normal traffic. Despite the freezing weather and ice and snow conditions of rivers and highways and reduced rail shipments, there was reportedly little or no shortage in coal supply to consumers. Inventories at electric utility plants and steel company coke plants at the beginning of the severe weather were sufficient in most cases for at least 30 days" operations. There have been no reports of coal shortages at other industrial plants.

Jan 1, 1977

According to reports in August, Botswana RST's copper- nickel-cobalt smelter at Selebi-Pikwe produced 7 percent above the rated capacity of about 3,500 metric tons of matte per month. This record production occurred after 2 years of plant production difficulties and was brought about by a new management team. A shutdown for furnace maintenance had been planned for this year, but was postponed because of the improvements in production and operations. However, the mining operation continued to face problems relating to higher costs and some outstanding claims. COPPER: Effective December 1, ASARCO, Inc. and Phelps Dodge Corp. reduced their domestic copper prices by 54 per pound. Within a period of 3 days, a11 other producers (Kennecott Copper Corp., Newmont Mining Corp., Cities Service Co. , Copper Range Co. , Duval Corp., and Inspiration Consolidated Copper Go. ) had either lowered or discounted their market postings by 5¢ to 65.625¢ per pound on electrolytic wirebar and 65$ on cathode plate. Between November 29 and December 3, New York merchants decreased wirebar quotations by 1.8¢-2¢ to within a range of 57.8¢-58¢ per pound. New York Commodity Exchange (COMEX) spot-contracted copper in the week was priced at 57. 1¢ on Monday, 56.7¢ on Wednesday and Thursday, and 57.4¢ on Friday, resulting in a 5-day average of 56.9¢, London Metal Exchange (LME) cash (prompt) wirebar averaged 56.3¢ last week, opening Monday at 56.6¢, falling from Tuesday?s high of 57.2¢ to Wednesday?s low of 55.6¢ and closing Friday at 56.1¢. Foreign producers, guided by LME market transactions, lowered wirebar quotes to 56¢ per pound. Copper stocks as of December 3 totaled 187,702 short tons at COMEX warehouses and 654,573 tons at LME depositories, compared to 97,413 and 537,481 tons, respectively, for the corresponding 1975 period.

Jan 1, 1976

New Copper Deposit in Chile. - The recent copper discovery in Chile, made jointly by U.S.-owned Empresa Minera Utah de Chile, Inc., and Getty Mining Chile), Inc., awaits the passage of Chilean legislation which is expected to govern the terms of new foreign investment in the country's mining sector. Named La Escondida, the discovery is reported to have the potential for producing 100,000 tons of refined copper per year. This compares with Chile's total refined primary copper production in 1980 of 811,000 metric tons, and to U.S. refined primary production in 1980 of 1,122,000 metric tons derived from domestic material, and 89,000 metric tons from foreign material. U.S. Firms Buy Chilean Properties. - A bid of $18.1 million, made jointly by Chevron and St. Joe Minerals Corp., won over competing bids for the purchase of the Libra and Mena gold-silver-copper deposits in northern Chile. Chevron is the lead partner and owns 70% of the venture. The two properties purchased have not been developed to any significant extent. They are located near St. Joe's El Indio gold-silver-copper mine. The venture is also looking at the possible purchase of two other mines in the area.

Jan 1, 1981

By Arthur Notman

YEAR ago, the Committee on Mineral Economics ventured to predict a more realistic attitude by the public toward the folly of seeking to have more by making less under the guidance of the Blue Eagle. A unanimous decision of the Supreme Court of the United States has now laid that embattled bird to rest. De rnortuis nil nisi bonum. In spite of dire predictions of disaster to follow its early demise, the metal industries and many others have improved substantially. One could name many indications of that improvement, and on the strength of stock-market activities might assume

Jan 1, 1936

By Henry J. Sandri

ACQUISITION JUSTIFICATION There are many reasons why companies consider acquisitions as a means to expand their operations. Some wish to reduce the impact of business cycles on their businesses. Others seek firms within the same industry for expansion and increased market share. Still others diversify in order to avoid takeovers. Whatever the reasons or justification, an evaluation of an acquisition candidate should be systematic and thorough. To many financial managers the concept of a systematic acquisition evaluation indicates the need for a regular set of evaluation criteria. While these are available from numerous sources, one basic parameter frequently overlooked is the application of these criteria to an industry which is different from the acquirer. This becomes particularly important when evaluating firms within the mineral industry. The mineral industry is significantly different from other industries to require different valuing techniques. • This paper will present a number of reasons why an acquisition candidate in the mineral industry should be evaluated differently from other acquisitions, including by other mineral firms. Additionally, this paper will review the most appropriate means of valuing a mineral firm. • Firms considering the acquisition of a mineral firm should understand the nature of the industry before ever making a tender offer. Some of the general considerations include the following: • Level of Capital Intensity: In the mid-1980's the start up cost for a gold mine has been between 20-200 million dollars and 500-1,500 million dollars for a bauxite operation. • Global Nature of Competition: Except for certain industrial minerals, most minerals and metals are traded worldwide and many on national exchanges, such as COMEX. • Start-Up Time: Many mining operations in developed and developing countries have long lead times, 7 to 10 years in some cases, prior to the start-up of production. • Long Term Nature of Investment: For most mineral operations payback usually occurs at least 7 years after production has started. Additionally, many mining operations will continue producing for 80-100 years. • High Level of Risk: The number of factors that a mining firm cannot control such as grade, volume, world supply and demand, plus the long payback periods tend to classify mineral firms at a higher than average risk compared to other investments. • Cyclical Nature: The mineral industry is cyclical in nature, experiencing long troughs and explosive peaks, thus making timing a critical issue. • Labor Intensive: Even with the large capital requirements needed to operate a mine, most mines are labor intensive in proportion to their capital equipment. • Location: Obviously, the nature of this industry requires operators to work in difficult locations, frequently far from civilized localities, in poor weather conditions and without proper supply and distribution infrastructure. One of the most important considerations is an understanding of asset replacement and asset value. Unlike manufacturing concerns, firms in the mineral industry are working toward the elimination, through depletion, of their asset base. Product flexibility is not available to a mining operation. A mineral firm basically has two options as its resource base is depleted: 1) replace the asset with new production, or 2) deplete the asset and close down operation, as in the South African gold mining model referred to later in this paper. An understanding of the

Jan 1, 1985

By William R. Chedsey

ALTHOUGH few changes can be reported in educational methods at the mineral technology schools during 1940, other events have taken place of direct interest to, and that will have a profound effect upon, mineral industry education on the United States. In the erection of new buildings, some notable changes have been made on the campus, The U.S. Bureau of Mines Experiment Station at the University of Utah, Salt Lake City, was dedicated on May 20. The construction and equipment of this building cost between $300,000 and $400,000. It will be the general headquarters for the metallurgical division of the Bureau and will have a pronounced effect upon the mineral industries research program at the University.

Jan 1, 1941

By Francis A. Thomson

IN reviewing mineral industry education a year ago, occasion was taken to congratulate the Institute in general and to felicitate the Education Di- vision in particular on "the most gratifying growth which is taking place in Institute consciousness in regard to its responsibility for the recruitment and adequate training of student personnel and for the successful bridging of the difficult gap between graduation and achievement of professional status." Continuation of this growth of interest throughout 1939 is a recognition of the validity of the splendid statement of George Otis Smith that the mining students of today are the ore reserve of the Institute for the future. In this connection one recalls the equally apt expression of another distinguished geologist, George M. Fowler, who, speaking of exploration for ore deposits, says, "The place to look for elephants is where elephants have been found."

Jan 1, 1940

By W. B. Plank

RETURNS already received from a current survey of the enrolment of students in the mineral technology schools indicate a degree of activity and prosperity in those schools never before equalled. The returns are as yet too meager for accurate analysis, but those at hand point LO considerable increase in the metallurgical and petroleum engineering groups, and indicate that the total of 5011 two years ago in the United States schools will be substantially increased. Generally speaking, the enrolment is not only maximum in quantity but optimum in quality. Better income has sent the boys back to school, but the improved employment conditions have somewhat reduced the number of graduate students. Laboratories are commonly filled to capacity, in some instances overcrowded. Increased enrolment of foreign students from both Canada and South America is noticeable.

Jan 1, 1937