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By Charles W. Daugherty, Eugene B. Waggoner

In the construction of recent subsurface projects, particularly mined openings and transit systems, it has been apparent that final costs were often greater than first expected. Because many overruns result from alleged differing site conditions, there was reason to suspect that pre-bid geotechnical investigations were inadequate for predicting subsurface geology. In 1982, nine federal agencies involved in constructing underground facilities funded the National Academy of Sciences' U.S. National Committee on Tunneling Technology (USNC/TT) in an effort to evaluate and clarify the relationship between geological knowledge and construction costs. That committee formed the special Subcommittee on Geological Site Investigations, which spent more than two years studying underground projects by examining contract documents and geologic reports, making site visits, and interviewing owners, designers and contractors. The study ultimately encompassed 84 mined tunnels and chambers and three deep shafts in the United States and eastern Canada. Data collected on geologic exploration, design and construction were analyzed and conclusions reached concerning whether and how site investigations need to be improved. The results of the study are published in two volumes by the National Academy of Sciences. Due to the recent completion date of the main report, it was not possible to prepare a summary for inclusion in the RETC Proceedings. However, the complete two-volume report, "Geotechnical Site Investigations for Underground Projects," can be obtained by writing or calling: U.S. National Committee on Tunneling Technology National Academy of Sciences 2101 Constitution Avenue, N.W. Washington, D.C. 20418 (202) 334-3136

Jan 1, 1985

By Lucia Kuizon

The Pinnacles Wilderness Contiguous Wilderness Study Area (WSA) (CA-040-303) is 30 miles south of Hollister, CA, in San Benito and Monterey Counties. It is composed of five parcels of public land totaling 5,838 acres adjacent to the Pinnacles National Monument. The U.S. Bureau of Land Management later reduced the size of the Recommended Suitable Area (RSA) to 2,200 acres. U.S: Bureau of Mines personnel examined the entire WSA in May 1984. The WSA is underlain by Tertiary sedimentary and Cretaceous plutonic rocks. Diatoms occur in interbedded tuff, shale, and sandstones in the northern part of the WSA, but outside the RSA. In 1984, there were no mines, prospects, mining claims, leases, or mineral resources in or within one mile of the study area. No energy minerals were identified; however, an oil well was drilled in 1951 in the northern part of the WSA, but outside the RSA; it was a dry hole.

Jan 1, 1985

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 McGregor GW

The Utah International group of companies has a wide geographic spread of operations, including a significant interest inAustralia's largest coking coal operation in Queensland, steaming and coking coal mines in USA, a copper mine in Canada, a half interest in an iron ore operation in Brazil, a number of smaller operations, and a significant portfolio of undeveloped properties in South America, South Africa and South East Asia.The opportunity to acquire this group of companies presented an immediate problem to BHP in that it was regarded as too large for BHP to absorb by itself. In addition, there was a concern that such an acquisition would increase BHP's coking coal exposures to unacceptable levels. Despite these dilemmas, BHP was keen to acquire Utah.A plan was therefore developed and agreed to by General Electric (GE) (the then owner of Utah) which would give BHP nine months in which to put together a consortium to share in the ownership of the Queensland coal assets (plus coal assets owned by BHP), and to arrange a project financing for use by BHP and the consortium. BHP would own 100% of the rest of the assets.

Jan 1, 1985

By Herbert D. Drechsler

The objective of this paper is to identify the components of income above that necessary to keep a mine in production and relate those components to the profits of a mining firm. This is a discussion of "Economic Rent". Economic rent is the payment to the factors of production -- capital, labour, entreprenuer and the owner of the mineral deposit -- above the minimum necessary to keep all of these factors cooperating in the production of minerals from a particular deposit. THE SOURCE OF ECONOMIC RENT IN THE MINING INDUSTRY In the mining business each mine has a unique cost of production unrelated to any other mine. The cost of production is developed from many factors such as the technical characteristics of the deposit: depth of deposit, depth of overburden, areal extent, and type of deposit. Furthermore, there are locational factors which also alter cost of production. For example, identical mineral deposits located in Zambia or in the southwest U.S.A. would have different capital and operating costs. These differences occur because of different qualities of labour, ease of acquisition of operating supplies or investment capital and other similar factors. To explain the source of rent, we shall use ideas developed by Alfred Marshall and Kenneth Boulding. Suppose a meteorite with special qualities exploded over earth and sent showers of small meteorites to the ground in various places. At some point in time, people learned of the special qualities of these meteorites and a demand arose and one mine was started. Suppose further that the cost of production to produce these meteorites was different for each deposit. Probably the lowest unit cost mine would commence production because if a higher unit cost mine started-up, eventually someone would discover a deposit that had a lower unit cost of production. The lower unit cost mine would take over the market and the high unit cost mine would cease production. The cost curve for the first mine would look like the following Figure 1. [ ] The output for the first mine is on the horizontal axis with the cost per ton on the vertical axis. The curve labelled AC I is the average total cost of production over the range of possible production that could occur at the property. The total costs are composed of variable costs, which are dependent on output and fixed costs, which are dependent on time. For example, the cost of operating supplies would be a variable cost and normal profit would be a fixed cost.1 The opportunity cost of the investment would also be part of the fixed costs. In our example, all factors of production, are receiving the minimum necessary payment that will keep the mine operating. The average total cost curve is U-shaped because at zero output, the meteorite mine has no variable costs, only fixed costs which, on a unit basis, obviously are very high. To produce a small output of meteorites, the mining firm adds

Jan 1, 1985

By H. C. Roland Kammel

Stannous sulfate electrolytes are widely used nowadays in electrolytic tin production. Characteristic features of this electrolysis process are that dense cathode deposits can only be obtained by additions of organic additives and that so called ?black mud is formed on the anode surface which leads to an increase in cell-voltage. In order to prevent excessive cell-voltages or oxygen evolution the black mud has to be removed periodically. Studies in laboratory scale have been performed about the effect of different organic additives on electrolytic tin deposition and the formation of surface layers on pure and industrial tin anodes. Results reveal that organic addition agents are effective in reducing cathode roughening as well as extending the covering time of the anode ?by black muds.

Jan 1, 1985

By Ross R. Bhappu

A theoretical and experimental investigation into pyrometallurgical refining of chloride leach/electrowin copper is described. The two techniques investigated were (i) vaporization and (ii) gaseous halogenation. Experiments were carried out with a packed bed of electrowon copper crystals and a boat of melted copper crystals. Nitrogen gas and Freon 12/nitrogen mixtures were used as the carrier and reac.tive gases. Vaporization was found to be effective in removing Bi, Pb and S while halogenation was effective. in removing As, Bi, Pb, S and Sb. Silver resisted all attempts at removal. Iron was removed but less effectively than the other impurities.

Jan 1, 1985

By William G. Pariseau

The research reported here concerns a four year study of the rock mechanics aspects of two underground hardrock mine study stopes. The first study was conducted at Anaconda Minerals Company's Carr Fork Mine near Tooele, Utah. The second study was conducted at the Homestake Mining Company's Homestake Mine In Lead, South Dakota. Both case studies were cooperative efforts of mining company personnel, the Spokane Research Center of the Bureau of Mines and the Department of Mining Engineering, University of Utah. Large diameter (6 1/2 In.) blastholes were an integral part of the stoplng method at each mine. A true vertical crater retreat (VCR) method was used at the Homestake Mine, while a vertical bench mining method (VBM) was used at the Carr Fork Mine. VCR and VBM methods were developed In the 1970's; they offer significant productivity gain and are now used throughout the world. The new technology, however, brings with It a requirement for more sophisticated engineering design and control. Since there are no personnel in a VCR or VBM stope, all ground control Including dimensioning of stopes and pillars and the layout of cable bolt assays or other artificial support must be done in advance of production blasting. Accordingly, the objective of the research study was the establishment of a procedure for optimizing stops and pillar sizes. The approach taken was In each case a combination of mine measurements of the study stope response to mining, laboratory testing for rock properties and In situ stress measurements of the premining stress field, and theoretical calculations of the study stope response to mining. All calculations were done with the UTAH-II finite element computer program. Simulation of the blasting sequence gave a correlation of 0.88 between measured and calculated extensometer readings (Incremental relative displacements) at the Carr Fork Mine where other 30 Instrumentation boreholes were used to monitor the test stope response. A correlation of 0.84 was obtained at the Homestake Mine where 19 instrumented boreholes were used for monitoring purposes. These high correlations validated the computer mode and calibrated It for rock mass properties. The calibrated model was then used In parametric studies of alternative design layouts.

Jan 1, 1985

1. Domestic Production and Use: In 1984, 12 companies operated 27 primary aluminum reduction plants, with 3 firms accounting for 57% of production. Washington, Oregon, and Montana accounted for 35% of the production; Indiana, Kentucky, Missouri, and Tennessee 25%; Alabama, Arkansas, Texas, South Carolina, and North Carolina 20%; other States 20%. Based on published producer prices, output of primary metal in 1984 was valued at $7.2 billion. Aluminum consumption by 25,000 firms was centered in the east-central United States. Packaging accounted for an estimated 35% of domestic consumption in 1984, transportation, 20%; building, 18%; electrical, 9%; consumer durables, 8%; and other uses, 10%.

Jan 1, 1985

By R. E. Chaney

This report summarizes the research on the Strategic and Critical Materials Program tasks conducted at the Idaho National Engineering Laboratory (INEL) between May 1984 and April 1985. The work is divided into two areas: 1. Production Technologies - Tasks directed at developing advanced extraction technologies ? Biologically-Assisted Minerals Processing ? Metal/Gas Reactions and Thermal Plasmas ? Dehydration of Aluminum Chloride Hexahydrate (completed). 2. Conservation/Substitution Technologies - Tasks directed toward establishing the technical processing base which will permit the use of advanced materials ? Joining of Rapidly Solidified Alloys (RSA) ? Joining of Silicon Nitride-Based Ceramics ? Nondestructive Evaluation of Ceramic and RSA Joints and Materials ? Substitute Catalytic Materials for Platinum.

Jan 1, 1985

By C. E. Brechtel

A testing program was conducted to design a cemented backfill fur hydraulic placement in underhand cut and fill mining of a steeply dipping coal seam. The testing evaluated the use of three different backfill aggregates, locally available at the coal mine, with Portland cement and five different pozzolans, including a Class F fly ash, a Class C fly ash, a cement kiln dust and ground smelter slag. Both viscosity and uniaxial compressive strength of backfill mixtures with different pozzolan and Portland cement contents were used to evaluate their suitability. Based upon the results of preliminary testing, an optimum mixture of alluvial sand with six percent Portland cement and ten percent Class F pozzolan was chosen for further compression testing.

Jan 1, 1985

By H. P. Cole

Methods for increasing compliance to medical and health regimens were reviewed along with similar research in industrial and mine safety. Principles abstracted from both areas suggest that compliance with health and safety practices is improved when: (1) Workers are cooperatively involved with management in setting safety goals and planning for their achievement, (2) the program has the support of workers, supervisors, and management, (3) specific tasks responsible for injuries are targeted, (4) company organizational policy, educational, and behavioral programs work together toward the same goals, (5) workers and supervisors are frequently informed about their degree of correct task performance, and (6) programs are monitored by the frequency of correct performance of targeted tasks, (the means to lowered accident rates) rather than by lowered accident and injury rates themselves (the goals for safety programs.) Safety programs that incorporate these principles increase persons' adherence to specified health and safety practices and subsequently decrease injury rates. It is recommended that: (1) a group of experts be convened to study the application of these principles to coal mine safety programs, and (2) a short course for safety trainers be developed to demonstrate how these principles can be used to strengthen existing mine safety programs.

Jan 1, 1985

By David J. Hoadley

This report describes the development and limited testing of a semi-automatic, raise climber, Compact Service Hoist System designed for stope access in underground metal and nonmetal mines. Demonstrated capabilities of the system include a 1,000-lb payload capacity, control from the traveling cage and from up to three remote stations, operating in vertical or inclined raises 3 ft in diameter and up to 300 ft in length and a travel speed of 50 ft/min. The system has the capability of operating in crooked raises because the conveyance climbs two stationary wire ropes suspended down the raise. The drive unit is electrically powered with power and control signals supplied to the drive unit through an umbilical 'cable also suspended down the raise. The system has been designed for portability, ease of installation and minimum raise development. The hoist has been demonstrated successfully in an above ground test tower. This report provides a detailed description of the hoist design and its demonstrated performance to date.

Jan 1, 1985

By Glenn A. Shirey

The objective of this contract as to prepare a detailed, readily usable handbook on dust control techniques for longwall mining operations. Information was gathered from available literature, and through contacts with industry and government personnel. The handbook describes those methods of dust control applicable to today's longwall mining systems, and contains sufficient design elements to assist operators with problems in testing or implementing new control procedures. Complete reference lists are presented at the end of each chapter to direct the reader to additional information.

Jan 1, 1985

By Robert S. Schechter

A minitest of the new potassium chloride-potassium carbonate two-stage in-situ uranium leach process has been carried out at the Intercontinental Energy Corporation (IEC) Zamzow project site in South Texas. Substantial quantities of high concentration uranium were produced indicating the viability of the leach solution. The test results yield information regarding the reservoir dispersivity, the average cation-exchange capacity of the formation, and the distribution coefficients describing cation-exchange reactions. The test also indicates permeability anisotropy and the existence of disturbed flow fields.

Jan 1, 1985

By T. F. Anstett

The Bureau of Mines estimated the potential availability of tungsten from 57 mines and deposits in 19 market economy countries. The tungsten resources of China and the U.S.S.R. were also estimated. This resulted from an evaluation of tonnage-cost relationships indicating the quantity of tungsten available as ammonium paratungstate (APT), artificial and natural scheelite, and ferrotungsten at various average total costs of production including 0- and 15-pct rates of return on invested capital. The evaluated deposits contain 1.2 million metric tons (t) of recoverable WO3, of which approximately 52,000 t of AEYT can be produced at the January 1983 market price of $5.37/lb, 89,000 t of natural and artificial scheelite at a market price of $3.63/lb, and 1,700 t of ferrotungsten at $5.61/lb of tungsten. An annual availability analysis indicates that by the early 1990's new deposit discoveries, development of known prospects, or expansions of producing mines will be necessary to meet projected tungsten demand.

Jan 1, 1985

By F. A. Penning

Improved skips, with lightweight cylindrical bodies, have made a significant contribution to advancing mine hoisting technology. New concept skips of aluminum bodies with rubber lining; fiberglas bodies with polyurethane liners have been designed and fabricated for field testing at an operating mine. New design, adjustable guide rollers have shown improved ride characteristics with noticeably less wear. Major reductions have been made in stress levels and stress concentrations. Field experience has shown the practicality of the approach. Guide alignment has been measured using the Guide Alignment Measuring System (GAMS). Analysis has been applied to interpret the data. Field measurements in an operating shaft and a test tower have shown the agreement in data from GAMS and plumb wires. Reproducibility has been demonstrated. The data are useful to realign shafts, to use as s maintenance tool, and to evaluate the maximum safe hoisting speeds. The surveys are made at several hundred feet per minute and the system is self-contained. Dynamics of skip-guide interaction has been analyzed using the computer program SKIP II. The effects of speed, weight, type of guides, kind of misalignment have been studied. Resonance has been demonstrated and factors that eliminate resonance have been identified. Data from the GAMS surveys are applicable to the SKIP II program. Interaction between the hoist rope and the mine conveyance has also been studied. Computer programs and closed-form solutions are presented. Economic impact of lightweight skips is presented for an existing mine and for a new mine. Reduction in rope size has a profound effect when using a lightweight skip for the same capacity. Increased productivity can be realized by keeping maximum rope pull the same while increasing skip capacity. Examples and charts project the significant savings in capital expenditure for new installations.

Jan 1, 1985

By R. V. Ramani

This volume is the second of a four-volume final report on research carried out under a contract from the U.S. Bureau of Mines on the development of a computer simulation model for surface mine reclamation planning. The other volumes are titled as follows: Volume I: Ore Reserve Estimation, Volume III: Mine Coordinate Generator System, and Volume IV: User's Manual for OPMHS/2. The dragline model described in this report simulates the movement of the dragline bucket across the digging face, the swing load, the dump, and swing back. It is programmed to handle chopdown, key cut, main cut, and rehandling operations. Provisions have been made for simulating equipment and mining delays. Any mining method can be specified in terms of numbered blocks, the dragline positions for the mining block and the dumping location for the block. Accounting procedures permit the calculation of production rates, rehandle volume, dig and delay times. The model can be used to study the effects of varying mining conditions, cut width, and spoiling sequence with special reference to toxic spoil, overburden and bench removal procedures. The basic input data for the model include machine parameters, the geology and material characteristics, the mining parameter, and the delay characteristics of the equipment.

Jan 1, 1985

By Michael E. Henderson

Presented in this report are the experimental results of coarse coal slurry degradation data obtained from the Hydraulic Transport Research Facility (HTRF) at the Pittsburgh Research Center (PRC), Bruceton, PA. The facility is operated by Boeing Services International, under Bureau of Mines Contract No. J0333956. Presented in this report are the experimental results of coarse coal slurry degradation data obtained from the Hydraulic Transport Research Facility (HTRF) at the Pittsburgh Research Center (PRC), Bruceton, PA. The facility is operated by Boeing Services International, under Bureau of Mines Contract No. J0333956. This particle degradation report is a summary of the particle distribution data obtained at the HTRF for the period 26 November 1982 to 1 October 1983. The testing covered herein is for coarse Pittsburgh Seam coal in the 6-in (150 mm) and 12-in (300 mm) pipelines, at velocities ranging from 5 to 18 ft/s (1.5 to 5.5 m/s), and at concentrations by weight ranging from 15 to 55 pet. Particle size distribution samples were taken systematically throughout the testing.

Jan 1, 1985

By James W. Reil

A test series of small, precisely-controlled and thoroughly-monitored production blasts was conducted at two quarries. In each series, all variables except delay were kept constant, as much as practically possible. The first aim of the study was to determine the effect of local geology on ground vibration. The second aim was to test several hypotheses relating the effect of millisecond delay intervals to fragmentation and ground vibration. A resonant frequency of ground vibration was shown to be related to the thickness of the overburden, in accord with a model proposed by Gupta (1961). Since the overburden geology creating this resonant vibration cannot usually be changed, two methods were tested to choose delays such that blast vibrations would destructively interfere. These were shown to be effective in modifying both the peak particle velocity and response spectra of ground vibration. The delay interval chosen also affects fragmentation, primarily in massive rock, with an optimum relief between holes of 2 ms/ft. Strain gage records indicate a possible mechanism consistent with this information.

Jan 1, 1985