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By Brian F. Taylor

The Mexican fluorspar industry is faced with and will face serious problems, some of their own making and others beyond their control. However, they still offer the most secure source of fluorspar for North American' consumers. Since 1975, even in light of declining markets, they have, increased then production capabilities' as shown in Table #1. In analyzing Table #1, we note that Compania Miners Rio Colorado has closed down due to their ore reserves being exhausted. Fluorita de Rio Verde expanded their acid grade fluorspar capacity in anticipation of additional North American business. Campania Miners Las Cuevas presumably increased capacity to meet their North American contractual commitments and to supply their own hydrofluoric acid plant (Fluorex) at Juarez, Mexico. Historically, the Mexican fluorspar industry has relied on the United States as the mainstay for their sales. As shown in Tables #2 and #3, the Mexican share of the United States market has moderately decreased. However, as noted in Table #4 the volume loss is substantial as explained below.

Jan 1, 1985

By Michael J. Klishis

It was the goal of this project to develop training materials specific to two areas of the mining industry: (1) safe use and care of the self-contained self-rescuers, and (2) awareness and avoidance of electrical hazards. This report describes the development of the following training material: Instructor's modules for the OCENCO EBA 6.5, CSE AU-9A1, and PASS 700E self-contained self-rescuers; and a textbook, slide tapes, and accident case study scenarios for mine electricity, and a computer based instructional package on mine electricity and electrical hazards. The report concludes that additional efforts are needed in mine training and four recommendations are made: (a) tailor existing materials to fit specific mine sites, (b) develop and evaluate computer based instructional material, (c) develop parallel training materials for metal and non-metal mines and, (d) develop additional training materials for preparation plants and surface areas of underground mines.

Jan 1, 1985

By James J. Fallon

I'm glad this meeting is being held in New York. First, because the city is close to my home in New Jersey, only 35 minutes from Times Square ..... if I were to come to Times Square between two and three in the morning. Otherwise it takes two hours. But even more important is the fact that all of you good people from around the country and around the world will enjoy the unique experience of that warm friendly atmosphere in the greater metropolitan area, something that you won't see any place else on the face of the earth. Seriously, the greater metropolitan area has been a large part of my industrial, cultural and spiritual experience. There are many aspects of it which I find disagreeable but on net I would rather live in this area, at least for the time being, than any other area of the United States. As a consultant I find contact with financial institutions, corporate headquarters, information sources and a great many production and research facilities a valuable asset to my activity.

Jan 1, 1985

By Ross Glanville

INTRODUCTION The Optimum Production Rate (OPR) is one of the most important parameters in the evaluation of a mineral deposit. The OPR can also be expressed as the Optimum Mine Life (OML) in years since the expected mine life is determined by dividing the OPR per year into the estimated ore reserves. Unfortunately, very little time and effort has been directed towards the determination of the OPR. Instead, "rules of thumb" are often applied to select a mine life without due consideration of the economic implications of such a selection. A "justification" for a particular production rate is often based on a pre-conceived arbitrary requirement for a mine life of 5, 10, or 15 years, for example. In this paper it is demonstrated that such arbitrary selections for high-grade/low-tonnage mines (such as many underground gold/silver deposits) often lead to sub-optimal results. In fact, an apparently uneconomic deposit at an arbitrary production rate may be economic at the OPR. Consequently, investment opportunities may be overlooked if one analyzes mine properties based on arbitrary production rates. This paper analyzes the interrelationships of variables such as production rates, capital and operating costs, cut-off grades, discount rates, metal prices, etc. The analysis shows that the OML for high-grade/low-tonnage deposits is often in the range of two to four years. Although such mine lives intuitively appear too short to many individuals, it should be noted that, in the past, much of the mining industry became familiar with the economics of large scale mining operations. The rules of thumb developed for such large scale operations should not be applied to high-grade/low-tonnage mines such as many of the underground gold deposits. DEFINITION OF OPTIMUM PRODUCTION RATE The OPR is selected on the basis of maximizing the net present value of the after-tax cash flows. However, as discussed later in this paper, the production rate selected for a particular mine may be somewhat higher or lower than the theoretical OPR as a result of other variables such as: 1) the probability or expectation of additional reserves being discovered 2) the likelihood of being able to custom mill nearby deposits owned by others 3) the configuration or attitude of the orebody, which may place upper limits on the production rate 4) the residual, or salvage values, of the mine/mill facilities COMPARISON BETWEEN DIFFERENT PRODUCTION RATES For an orebody with definite physical cutoffs*, or boundaries (such as faults or unconformities), the total ore reserves at different production rates may be identical. Consequently, for such an orebody, varying production rates result in differing mine lives. Although the metallurgical recoveries, the mine dilution, and other similar physical parameters may vary slightly at different production rates, the major differences are the capital costs and operating costs per ton. The ramifications of these differences are especially important at low production rates (up to approximately 1000 tons per day), but can also be significant at higher production rates.

Jan 1, 1985

By J. Korak

Belt conveyor systems, long the standard transportation technique in soft-rock open-pit applications, are encountering growing interest in the hard-rock open-pit sector as economic factors force companies to seek an alternative to costly truck haulage. A general review of mine conveyor systems is followed by detailed analysis of the mobile and semi-mobile in-pit crushing plant essential to successful use of mine conveyors. A final section presents case studies of three crusher-conveyor systems handling overburden, copper ore and granite.

Jan 1, 1985

By Edward E. Johnson

The U.S. economy made significant progress in 1984. The current-dollar gross national product (GNP), the market value of the Nation's output of goods and services, increased almost 11 percent over that of 1983 to slightly more than $3.66 trillion (table 1), and the real gross national product increased almost 7 percent.2/ Such rapid growth in real GNP has not occurred since the early 1950's. Real final sales increased only 5 percent during 1984, and real business inventories increased $24.8 billion ($57.9 billion in current dollars). Total employment of 106.7 million was an all-time record, and the unemployment rate declined from 9.5 percent in 1983 to 7.4 percent in 1984. During 1984 the U.S. dollar showed great strength on international markets, contributing to large current-dollar negative net exports of goods and services (-$62.5 billion) and even larger negative net exports of merchandise (-$107.6 billion). The strong dollar and the substantial increase in net imports of goods and services helped reduce U.S. inflationary pressures and provided a major source of loanable funds for financing domestic private investment.

Jan 1, 1985

By K. J. Ashley

Over the last six years I have been involved with the calculation of ore reserves and mine planning using various computer systems and soft- ware packages. This experience has given me a unique perspective from which to view the needs of the engineers and geologists whose job it is to produce geologic and mineable ore reserves. The purpose of this paper is to share that perspective with those who are in this field or are thinking of purchasing computer software to aid in these calculations. My first experience with computers in mining was the creation of a mini-computer based coal reserve and mine planning package written as part of my Easter's thesis. This package took about ten weeks to write, four weeks to document, and two weeks to install at the mine for which it was written. It did what it was designed to do, which was to emulate the hand procedure which had been used prior to its installation. The package was specific to its application which involved several small seams of coal being mined simultaneously and would have required major modification for it to be applied to a mine where, say, one thick seam was mined in two benches.

Jan 1, 1985

By A. K. Sinha

A great potential market for the high BTU midwestern thermal coal exists if the coal is desulfurized and prepared to meet the environmental restrictions and the utility customer specifications. Because the midwestern coal is very high in pyritic sulfur, it can be adequately desulfurized by removing the pyrite with the help of such coal cleaning techniques as the froth flotation. Froth flotation cells are now commonly employed in modern coal preparation plants for recovering the fines but they are not utilized for desulfurizing the coal probably due to a lack of system operating data for such applications. A research project recently conducted at Southern Illinois University shows that the total sulfur in the midwestern coals can be successfully reduced from as high as 5.3 percent to less than 1.4 percent by single stage froth flotation. The results obtained on ten different samples of high sulfur coal obtained from different areas in the Illinois Basin are presented and discussed.

Jan 1, 1985

By K. H. Singh

The addition of new data and corrections can be made under the control of a simple editing session. All programs for this system are written in FORTRAN and executabe "MACROS".. After the addition of new data, the whole file Is reinitialized to update the binary file and cross-reference tables. Updating the binary file involves rerunning the initializing program. The creation of graphic plots like cross sections and plan views is menu-driven from a terminal and very user-friendly. Small files containing not more than 10,000 entries (survey and assay points) are suitable for this setup, particularly for computers with less than 2 Megabytes of real and virtual memory. The largest file processed contained 35,000 lines of survey and assay information and required 4 megabytes of virtual memory. Working with this size file slows down the time for the creation of plots and cross sections. Another independent system is more akin to a financial type of data base. It was installed in one Anaconda mine as part of the operation's inventory, warehouse, day-pay payroll, and purchasing data bases. It is a highly hardware-dependent system, in particular, IBM's CICS/VS (Customer Information Control System/Virtual Storage). This is a true relational data base that optimizes storage requirements, supports online inquiry, update, data entry, and data security. While this system has been tested and proven in accounting applications, it requires programming expertice in PL/I and other CICS utility programs. It is well suited for huge data bases (like the 35,000 lines of data), but cumbersome for small engineering files.

Jan 1, 1985

By T. C. Canter

Technological change is continually affecting the mining industry and the many papers being presented at this meeting reflect this fact. I fully agree that miners must remain fully cognizant of technology that can change mining costs and therefore your competitive marketplace. Despite the embrace of new technology and effective mine management techniques, the mining enterprise may not realize increased net income if the structure of the minerals marketplace is not understood. An important segment of the marketing structure for minerals is transportation. Transportation costs per ton can be much greater than the mining costs per ton and may accordingly overshadow hard earned gains in productivity. Change is greatly affecting the transportation industry but the change is driven more by governmental policy than technology. Although some technological advances are occurring in the bulk transportation business, the changes I want to address arise from policy. Policy changes have come from legislation in the 1970's culminating with the Staggers Act of 1980 and ensuing Interstate Commerce Commission decisions.

Jan 1, 1985

By Madhu G. Ranade

A statistically designed pot grate- kiln test program was conducted to determine the agglomeration process variables necessary for increasing the low temperature disintegration resistance (LTD) and reducibility (R40) of magnetite-based Empire acid pellets. The ASTM tumble index and compression strength were to be maintained at an acceptable level. Six process variables, bentonite addition level, preheat time and temperature, firing time and temperature, and cooling rate, were investigated within the constraints of the Empire plant. The bentonite addition level and firing temperature had the largest effect on pellet properties. The results of this program were verified during a pl ant trial. The target firing temperature at the Empire Plant has been decreased for increasing the LTD and R40 of commercially produced Empire pellets

Jan 1, 1985

By Catherine C. Kilgore

The Bureau of Mines investigated the availability of fluorspar from 35 domestic and 50 foreign, mines and deposits in 13 countries. Only 6 domestic properties are considered to be economic reserves, as 29 domestic deposits were found to have an average total cost of production that was uneconomical at a breakeven (0 pct) DCFROR. The 50 foreign properties evaluated were selected to represent at least 85 pct of the known demonstrated fluorspar resources located in market economy countries and China. All evaluated foreign operations were found to be economic to marginally economic in January 1984 dollars. World demonstrated ore reserves of 344 million metric tons (mt) containing 123 million mt of CaF2 were evaluated for the 56 operations. Average total costs needed to cover all costs over the life of each operation were determined for all recoverable fluorspar products. Comparisons of mining, beneficiation, and transportation costs per mt of fluorspar concentrate illustrate advantages between countries. Of the three largest producing countries, China, with its high-grade, low-cost operations had the lowest weighted average total cost of production ($38/mt concentrate). Mexico was next at $54/mt concentrate, and South Africa needed an average of $90/mt of concentrate to cover all costs of production for its low grade deposits.

Jan 1, 1985

By V. R. Degner

The minerals industry trend toward very flotation machines, exceeding 10 m3, began in the late 1960's and responds to the continuing desire to achieve better plant economics through improved plant floor-space utilization, power requirements, and operational /maintenance manpower heeds. In general, as process design tonnage increases, the benefits of the larger flotation machine becomes more evident. The development of the larger flotation machine can be distingushed from earlier, smaller, machines in demanding a rational "scale-up" procedure to guide the basic design, thereby producing a machine prototype capable of satisfactory-operational evaluation at minimum cost. Proven flotation machine "hydrodynamic" scale-up consideration, successfully applied in the development of both the WEMCO No. 164 (28.3 m3) and No. 190 (42.5 m3) machine will be reviewed, and the resulting economic benefits of large flotation machines in high tonnage applications will be summarized.

Jan 1, 1985

By J. S. Hansen

To advance technology that can conserve critical materials, the Bureau of Mines investigated a cast-on hard-surfacing that wear resistance and confines alloy additions to wear-prone surfaces. Wear-resistant material in form is on a polystyrene , the is embedded in a mold of unbonded s and the wear-resistant material is transferred to a cas surface at the time of For low-stress abrasion, derived from high-carbon ferro-chrome had higher wear resistance than did commercially available weld-hard. The microstructure of the was typi-white iron carbides. Free carbon added to the ferrochrome powder produced more M7C3 carbides than did material contained in surfacings made from ferrochrome alone, and improved the wear resistance. Several white iron powders with greatly reduced chromium contents also white iron contain-M7C3 carbides. One derived from white iron powder had wear resistance to that of weld-deposited hard facings. Among the parameters investigated, surfacing thickness was found to have a or influence on diffusion of elements out of the , microstructure, and wear resistance. The results of field tests on bucket-wheel excavator teeth and plowshares with cast-on hard surfacing are given.

Jan 1, 1985

By H. F. Anderson

The Palabora Mining Company Ltd. is probably best known for its production of copper since 1965. The success of the PMC mine lies in the outstanding technical and highly organized efficiencies applied to the massive mining, transportation, and treatment operations necessary to produce profitable copper. We are not however going to discuss the well-known copper operation but the extremely successful recovery and marketing of Baddeleyite by the PMC group. Let us first review the extraction process at the Heavy Minerals Plant. Non-magnetic ground ore from the copper magnetic separators is processed in the Heavy Minerals Plant for the extraction of the "heavy minerals" uranium and zirconia (Baddeleyite). Thorium is also present as a potentially recoverable mineral. The content of the minerals in the feed is probably the lowest in the world to be treated commercially. Minerals are separated from the waste ore by a gravity separation process in which the high density minerals segregate preferentially in a waterborne system.

Jan 1, 1985

By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985

By A. C. Alexander

Chevron Resources Company owns and operates an open pit phosphate mine and mill 11 miles north of Vernal, Utah. The plant currently produces 500,000 tons per year of concentrate and has the capacity to produce 750,000 tons per year. The operation is currently being expanded to 1,300,000 tons per year of concen¬trate in order to supply a new fertilizer plant being constructed by Chevron Chemical Company in Rock Springs, Wyoming. A 10-inch, 96-mile pipeline is being built to transport the concentrate from Vernal to Rock Springs. The present and expanded operation will be discussed. HISTORY In 1915, Harry Ratliffe staked nearly 15,000 acres of low to medium grade phosphate rock along the southern flank of the Uintah Mountains. This deposit became the largest privately owned phosphate deposit containing approximately 700 million tons of reserves. Initial development of the deposit began in 1958 by San Francisco Chemical, a joint venture between Stauffer Chemical Company and Mountain Copper Limited. In 1968, Stauffer Chemical Company bought out Mountain Copper Limited and became sole owner and operator. In 1981, Chevron Resources Company bought the property from Stauffer and has operated the mining and milling operations since.

Jan 1, 1985

By Rod Heath

The Saskatchewan industry has the advantages of an ore body of a size and consistency unmatched anywhere else in the world, and large, efficient mines with production costs that compare favourably with those in other countries. On the minus side, Saskatchewan is remote from most major markets, and producers face a distribution challenge to reach the offshore markets which is the main focus of this presentation. One of the characteristics of the world potash business is that all of the major sources of production are located in the developed areas of the world, while there is no significant production in any of the highly populated developing countries. The major potash producers are located in Canada and the United States, in West Germany, France, Spain and the U.K., in Russia and East Germany, and in Israel and Jordan. There is currently no significant production in any of the countries in Asia (with the exception of Jordan where a plant is currently in the start-up phase), Africa, Latin America or Oceania, and all of these areas must, therefore, import a11 of their potash requirements from the producing countries.

Jan 1, 1985

By J. George Gregr

"This paper gives a brief review of grinding mills installation procedures with special emphasis on future maintenance. The importance of cooperation between the customer, construction contractor and manufacturer's representative is discussed, as well as the imparlance of complying with standards, specifications and the keeping comprehensive installation records.Fundamentals of mill maintenance are explained with the aim being to maximize the equipment availability and to minimize unscheduled downtime. The paper also includes development of wear items design, based on operating conditions, drive components and bearings, and how to keep large gears healthy thus eliminating surprise failures.Experience with installation of a large gear on a 34-foot diameter mill in Lornex and successful application of a computer program for the gear alignment on the mill are given.IntroductionSuccessful operation of a concentrator begins with the engineering of the project and continues through selecting the right equipment, its installation , start-up period, and ends with final tuning of the process. machinery and the human factor into an efficient and viable industrial complex.The following is a brief review of grinding mill installation procedures with special emphasis on future maintenance. Fundamentals of mill maintenance are discussed with the aim being to maximize the equipment availability and to minimize unscheduled downtime, with some specific points on key grinding mill components such as bearings and drives.Finally, the experience is recounted with the installation of a large ring gear on a 34-foot diameter mill at Lornex, and the successful application of a computer program for the gear alignment on the mill."

Jan 1, 1985

By Perry L. Christian

"Mana/ta Coal Ltd. 's Costello Mine, located seven kilometres east of Estevan, Saskatchewan, has been operating at the present location since 1960. During the past twenty-three years, annual production of lignite coal has averaged 590 000 tonnes. The coal is used for power generation and for industrial and domestic use. Markets, operating techniques, facilities in place and reclamation are discussed. Introduction The Costello Mine (formerly the Klimax Mine) is located in southeastern Saskatchewan, approximately 210 kilometres southeast of Regina and 5 kilometres from the United States' border, as shown in Figure 1. The present mine, 7 kilometres east of the city of Estevan, has been operating since 1960. The history, however, of the Costello Mine and of the Estevan Coalfield dates from the initial settling of the area in the 1880s. Mining initially consisted of burrowing into the side of the Souris River Valley or other hillsides where the coal seam was exposed. Eventually, slopes were put down in the Estevan/Bienfait area and vigorous underground activity existed. In the late 1920s surface strip mining was introduced. The use of strip mining progressed to the point where it completely replaced underground mining in the 1950s and it is the only method in use today. During the past 23 years annual production has averaged 590 000 tonnes. The lowest production was in 1960 when the mine was starting up at 167 000 tonnes and the highest production was in 1977 when production was 1 509 000 tonnes. The Costello Mine controls approximately 11 400 hectares of mineral rights in the Estevan area. This is made up of 4 900 hectares of freehold coal and 6 500 hectares of leases. The area forms a large, irregular shaped configuration. Most holdings are contiguous and adjacent. The mine also owns some 8 400 hectares of surface rights. The lands under the Costello Mine's surface rights control, which are not being used in the mining operation, are leased to local farmers and ranchers. This ensures that the land is used to its full potential, both before and after mining."

Jan 1, 1985