Search Documents

By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By William T. Jr. Renfroe, Donald C. Gipe

INTRODUCTION Historically, pollution control in the metal-ore mining industry has been very limited. Unless mine water contained large quantities of solids, it was generally discharged without any treatment. If treatment was used to control solids, it was principally the provision of a settling basin in the form of a tailings impoundment used in conjunction with an associated metal ore dressing facility. Recently, however, a growing awareness of the adverse environmental impacts of mine drainage, coupled with strict environmental laws, has prompted the mining industry to look at new technologies and to refine the existing methods to further treat the wastes generated. This industry is unique in that waste loadings are extremely variable, and a "typical facility with typical waste loads" does not exist. Consequently, one waste- water treatment system cannot be utilized on an industry wide basis; rather, each treatment system must be designed specifically for the pollutants in each individual discharge. Public Law 92-500, the Federal Water Pollution Control Act (FWPCA) Amendments of 1972, became effective on Oct. 18, 1972. This law completely restructured Federal laws and philosophies underlying the Federal approach to water pollution control. Prior to the 1972 amendments, the principal Federal regulatory tool had been water-quality standards based on a designated use for a particular body of water. The concept was that waste disposal into water bodies is a desirable and acceptable use of the water body if it does not interfere with other beneficial uses. This had the effect of requiring various degrees of treatment and, consequently, various economic hardships on industries de- pendent upon their location. In many waterways. it is very difficult to quantitatively relate discharges to water quality. The 1972 amendments changed the basic philosophy, as stated in the Senate Committee report on the bill, to ". . . no one has the right to pollute . . . that pollution continues because of technological limits, not because of any inherent right to use the nation's waterways for the purpose of disposing of wastes." Pursuant to Sections 301, 304(b), and 306 of the FWPCA Amendments of 1972, the US Environmental Protection Agency (EPA) was required to establish effluent standards applicable to all industrial discharges. These standards must be based upon the application of the "best practicable control technology currently avail- able" (BPT) and the application of the "best available technology economically achievable" (BAT). The BPT and BAT levels must be achieved industry-wide by July 1, 1977, and July 1, 1983, respectively. WASTE SOURCES The waste-water situation in the mining segment of the ore mining and dressing industry is unlike that encountered in most other industries. Most industries (e.g., the milling segment of this industry) utilize water in the specific processes they employ. This water frequently becomes contaminated during the process and must be treated prior to discharge. However, in the mining segment, process water normally is not utilized in the actual mining of ores (exceptions are hydraulic mining operations and dust control), but it is a natural occurrence that interferes with mining activities and must be removed before mining can commence. Water enters mines by ground-water infiltration and surface runoff, and it comes into contact with materials in the host rock, ore, and overburden. The underground mine must pump large quantities of ground water to prevent flooding of the mine. Water from surface mining operations generally occurs as a result of surface runoff of rainwater. Generally, mining operations control surface runoff through the use of diversion ditching and grading to prevent, as much as possible, excess water from entering the working area. Nevertheless, some surface runoff does come into contact with the working area and may become contaminated. The quantity of water from an .ore mine is unrelated, or only indirectly related, to production quantities. De- pending upon its quality, the mine water may require treatment before it can be discharged into the surface drainage network. The variability of water quality from mines can best be demonstrated by looking at Table 1. This table shows the range of pollutant concentrations in untreated discharges from three different categories of mines (as categorized by EPA in the development of BPT and BAT effluent standards for the metal-mining industry). Data for this table were obtained during EPA's preparation of effluent standards for this industry. The parameters shown on the table are the pollutant parameters of primary interest in this industry; blanks in the table indicate that data were not available, and the parameter is not expected to be present in significant quantities. Other pollutant parameters are present in mining waste water, but they are either incidentally removed in the treatment process or are found only in trace amounts. The three categories comprise more than 90% of the metal production value in the United States and approximately 95% of the total mine discharges. It is important to note that not all parameters are found in significant concentrations at all locations. IMPACT ON WATER QUALITY One of the most troublesome mine-drainage problems is acidity. Although generally associated with coal mining, acid mine drainage frequently occurs from other types of mines. Although the exact mechanism of acid mine drainage is not fully understood, it generally is believed that pyrite (iron sulfide, FeS,) is oxidized by oxygen (Eq. 1) or ferric iron (Eq. 2) to produce ferrous sulfate (FeSO4) and sulfuric acid (H2SO4) . The mining of ores associated with pyritic material exposes the pyrites to water and oxygen and grossly accelerates the natural oxidation processes, resulting in the significant production of acid mine drainage.

Jan 1, 1982

By L. L. Lien

In this economic age of high interest rates and softening mineral commodity markets, the mining industry is taking a hard look at how it conducts its business and where economies can be effected. The capital investment to build a new metallurgical facility or open a new property has traditionally attracted substantial investigation, analysis and management attention. The areas of mineral exploitation, financial feasibility, engineering and construction have been studied extensively and their management, although still difficult, have become refined disciplines.

Jan 1, 1982

By Brain W. Lawrence

Sublevel stoping generally is a large-scale open stoping method. It sometimes is referred to as long-hole or blasthole stoping. This method usually is applied to strong ore bodies that require minimal support and are surrounded by strong country rock. The ore body should be fairly regular in shape and well-defined. The dip of the footwall normally should be sufficient to allow broken ore to gravitate freely, although the method has been adapted successfully to mine some of the flatter ore bodies. Sublevel stoping is not dependent on the width of the ore body. Widths of less than 6 m (20 ft), however, make the utilization of long-hole drilling techniques more difficult. The main criteria for sublevel open stoping are competent ore and stable host rock, regular ore boundaries, and a footwall dip that exceeds the angle of repose of broken ore. Basically, the method entails providing access to the ore body at various subintervals between the main haul- age levels in order to drill and blast the intervening ore. Stope drilling is carried out from drilling drifts on the sublevels, and the ore is blasted in slices towards an open face, which generally is vertical on the downholes and may be inclined towards the open face for the up holes. The blasted ore gravitates to the bottom of the stope and is collqcted through drawpoints. Fig. 1 illustrates a typical sublevel stoping mine. The method requires extensive ore body development with relatively high capital expenditures. How- ever, much of the development is in ore, and production costs are comparatively low. Productivity rates are in the 13.6 to 27.2 t (15 to 30 st)/manshift range. The drilling, blasting, and loading operations are performed independently, and equipment utilization is high. Large outputs can be obtained with few units and limited personnel. Dilution with waste rock may occur if ore boundaries are irregular or if caving occurs, but 100% of the ore within the stope usually is recovered. Pillar recovery sometimes is a problem. It is at this point that most of the waste dilution occurs. At the time data was gathered for this report (1973), the sublevel open stoping method was used by more than 21% of the metallic ore mines in the US (9 out of 42 mines producing 1088 + t/day (1200 + stpd) and provided more than 12% of the total metallic ore production from these mines. DEVELOPMENT Access to a sublevel open stope mine is gained by a slope or shaft that is normally sunk in the footwall of the ore zone, away from any possible effects from blasting or other production operations in the stoping process. Main level interval is selected and usually varies from 45.7 to 121.9 m (150 to 400 ft), depending on the vertical extent of the ore body, the number of drawpoints required to maintain output, and the eventual stope height. The main haulage drifts are located at the bottom of the stope horizon, either directly in ore or in the footwall, with access crosscuts at intervals. Raises are driven up through the ore to connect to the level above and provide access and ventilation to the sublevel drilling drifts, which are driven horizontally in the ore for the length of the stope. Depending on the drawpoint system to be used, the stope is either undercut by a raise-and-cone system, from a scram or slusher drift, or simply provided with a drilling drift from which access is made at intervals to the main haulage level. A raise driven either at the end or in the middle of the stope (if stope access is from both ends) provides a start for opening up a vertical slot across the stope to establish a free or open face for long-hole drilling and blasting. Sublevel stoping has proved to be a relatively safe and economical system.

Jan 1, 1982

US 4,183,794 - Electrowinning zinc from a zinc sulfate solution produced by leaching zinc ore with sulfuric acid. The leach liquor is subjected to electrolysis in a first cell having an insoluble anode to deposit primary zinc on the common electrode. The coated electrode is transferred to a second cell having an alkaline electrolyte, and electrolysis is effected in the second cell to transfer zinc from the common electrode to the second cell cathode in a spongelike form which is readily stripped. R.H.C.L. Ross. Jan 15, 1980. 10 pp. (204-119). Filed: 12-22-77 (863,190). Same: Canadian 1,051,820, dated Apr. 3, 1979.

Jan 1, 1982

By Makoto Terada

The most important consideration in planning the plugging and sealing of a mine for mine water control is to predict the water flow from the mine. For this purpose, a method of numerical analysis on the water behavior in the ground at the concerned mine area was developed and the mine water flows were simulated. A hydrological survey at the surface of the mine determined the recharge rate of ground- water and the apparent permeability of ground.

Jan 1, 1982

By Robert H. Scott

Developments during the past few years have brought coal-based composite fuels to commercial readiness. During the next few years, composite fuels will become available from a number of suppliers. Potential users must evaluate the combustion properties of these fuels to determine equipment and operating changes required for their use. Most work to date has been done with boiler applications. However, many potential non-boiler applications exist in the metals and minerals industry. These applications require specific evaluations appropriate for the processes involved.

Jan 1, 1982

By Legett Garrett

Texas Utilities Generating Company (TUGCo) surface mines lignite for use as a boiler fuel at mine mouth generation stations. Currently, the annual lignite production requirement of approximately 28 million tons necessitates mining across approximately 1,600 surface acres each year. The mining operations, located in Freestone, Panola, Titus, and Hopkins counties, Texas, have drastically disturbed some 13,000 surface acres to depths of up to 110 feet since initial startup in 1971. The TUGCo mining philosophy, a commitment made prior to initiation of mining operations and prior to any mining regulations, includes a return of mined-out land to private ownership in the most useful state possible. In the areas of TUGCo operations, the local economies are based upon agricultural production. Historic land use surveys have typically shown a trend from row crop production to pastureland for cattle production. During the 1960?s, the percentage of acreage devoted to row crop production approached zero with respect to the total acreage devoted to agriculture. TUGCo reclamation operations have therefore emphasized restoration of land to a state that is favorable to cattle production

Jan 1, 1982

By Karl J. Dreher, Charles C. Hennig, Gregg A. Scott

INTRODUCTION Theodore Roosevelt Dam is a cyclopean-masonry, gravity-arch dam located on the Salt River northeast of Phoenix, Arizona. Construction of the dam began in 1903 and was completed in 1911. The dam is about 85 m high with a total reservoir capacity of about 1.7x109 m3. Raising the dam is now being considered to provide additional water storage and flood control. This paper describes preliminary analyses performed to assess foundation stability for increased loading resulting from raising the dam and reservoir water surface about 12 m. The foundation of Theodore Roosevelt Dam consists of variably metamorphosed limes tones, sands tones, mudstones, and shales. Bedding uniformly strikes nearly normal to the river (N 40º W) and dips upstream at 25 to 30º. The rock is cut by four prominent joint sets as indicated by the joint contour diagram shown in figure 1A. The diagram was developed from surf ace observations and vertical drill core oriented relative to the bedding. Sampling biases account for the differences in concentrations of various joint sets. However, field observations indicate that all sets are relatively prominent, planar, and continuous. SEEPAGE ANALYSES Consistent with practice at the time of construction, no foundation drainage was installed at Theodore Roosevelt Dam. Finite element seepage analyses were therefore performed to study the potential for large uplift pressures in the foundation. The dam has steep abutments and is curved in plan as shown in figure 1B. The effects of modeling the seepage two-dimensionally, radially symmetric about the dam's axis center, and three-dimensionally were therefore com-

Jan 1, 1982

By Wilton Johnson

Native asphalt was produced in 1981 by five companies in three States, Alabama, Texas, and Utah. Texas was the leading State in production of native asphalt. Total production increased in 1981 to 1.26 million tons, while value increased 10.5% to $27.7 million. Bituminous limestone, used primarily for street and road repair, was produced by Whites Uvalde Mines and Uvalde Rock Asphalt Co., both in Uvalde County, Tex., and Southern Stone Co., Colbert County, Ala. Gilsonite was produced by American Gilsonite Co., Uinta County, Utah, and Ziegler Chemical and Mineral Corp., Weber County, Utah. This material was used for purposes other than road repair.

Jan 1, 1982

By L. Nutter, J. Clancy

"Barite is used extensively by the oil and gas well-drilling industry as a weighting agent. It is particularly well suited for drilling mud because of its qualities; it is non-abrasive, heavy, virtually inert chemically, easy to handle and inexpensive compared to other available heavy materials. Increased deep well drilling in Western Canada, and especially in the Arctic regions, could dramatically affect the demand for barite through this decade. Known deposits in northeast British Columbia are possible sources of incremental barite supplies, should the situation develop.IntroductionThe purpose of this report is to examine the opportunities for expanding barite production in British Columbia. Of primary interest will be the relationship between the projected future levels of production and consumption of barite in Western Canada and the extent to which increased domestic production could replace the need for imports in filling any expected supply shortages.After a brief overview of the nature and uses of barite and some of the relevant features of the barite supply industry, the discussion will turn to the supply gap in the Canadian market and the possibilities for import substitution.OverviewBarite is an industrial mineral which is used in large quantities by the oil and gas well-drilling industry. It is often an important component of drilling mud, a fluid circulated continuously in the well during the drilling process to lubricate and cool the drilling apparatus and to contain the high oil and gas pressures found at depth. Barite (BaSO4) is particularly well suited as a weighting agent for drilling mud because it is a heavy (specific gravity to 4.5) inert mineral which is inexpensive in relation to other materials having a high specific gravity. In the on-site use of drilling mud, ground barite is combined with numerous other solid ingredients and chemicals in the form of a slurry. Other advantages of barite include cleanliness, ease in handling and its non-abrasive character (hardness of 3-3.5)."

Jan 1, 1982

By Richard E. McGee

The paper presents a description of the procedures that were used to generate a ventilation criterion based on measurements of ambient mine air exhaust pollutant gases and ventilation airflow quantities. Today's economics dictate that a ventilation requirement be based on actual operating conditions. This will assure optimum economics and a safe working environment at the same time. The paper presents a methodology by which a ventilation requirement is based on the average maximum expected concentrations of nitric oxide (NO), nitrogen dioxide (NO2), carbon monoxide (CO), and carbon dioxide (CO2) that equipment operators in one of our Southeast Missouri mines will be subjected to. A graph has been generated whereby the expected maximum levels of NO, NO2, CO and CO2 are plotted against the ventilation quantity of a mine stope.

Jan 1, 1982

By Takashi Goto

In 1968 three historical rockbursts had occurred at Bibai Coal Mine in Hokkaido. At the time they had been observed by several seismic observatories as natural earthquakes away more than 100km from Bibai City. These facts taught us that the occuerrence of failure yielded in underground opening that was accompanied with seismic wave could be observed by seismometer on the surface. After two years from this desaster, the study concerning to microseismic events generated from underground mining panels has been begun by researchers with heart-throb.

Jan 1, 1982

By W. A. Haley

The use of diesel engines in underground hard-rock mines dates back to the late 1940s. For the first several years, they were used only occasionally, being limited to a few metal mines that experimented with crawler¬mounted front-end loaders, tractor-trailer hauling units, a few tractors for drill-compressor mounts, and utility cleanup machines. By the mid-1950s, track loaders had become commonplace in limestone mines and uranium mines on the Colorado Plateau in the United States, as well as in Canada. Use of crawler-mounted tractors as drill and compressor mounts also increased. By the end of the 1950s, rubber-tired loaders and some haulers began to replace the track-type machines and rail-mounted cars that had been in use. About 1960, the rubber-tired machines brought about a new era of underground mining mobility and flexibility, centered on a method commonly known as "trackless mining." Ultimately, many of the underground rail-type systems for loading and hauling were replaced by the trackless mining technique. ECONOMIC CONSIDERATIONS The size and nature of mineral deposits, plus ground control techniques, historically had dictated small open¬ings to the surface from many underground mines. The small mine openings led to the development of special rubber-tired loaders and haulers designed specifically for access through the small openings. However, some mines, particularly those in massive mineral deposits, are able to excavate and maintain very large openings, and some use modified room-and-pillar systems. With the large mine openings, the use of larger, more produc¬tive equipment such as that commonly found in surface mining becomes economical. In fact, productivity gen¬erally increases at a more pronounced rate than machine size increases because many of the larger machines were designed for heavy-duty shot-rock applications in surface mines and construction sites where the handling of blasted rock is common. Table 1 can be used as a very Table 1. General Productivity Comparison for Conventional Machines In Underground Use (Shot-Rock Conditions) 2.3 m3 (3 cu yd) 4.6 m3 (6 cu yd) Loader Loader Expected Surface 230 t/h 540 t/h Production (250 stph) (600 stph) Expected Underground 90 t/h 270 t/h Production (100 stph) (300 stph) Expected Total Efficiency: Surface 40%-60% 50%75% Underground 25%.-40% 30%50% Expected Useful Machine 8000 hr 12,000 hr Life Before Replacement general comparison of the production and efficiency between small and large machines. Combining greater productivity often inherent in larger machines, with reduced downtime resulting from using fully developed machines with fast parts and service backup, some mine operators have been able to reduce material handling costs appreciably while reduc¬ing manpower requirements for operators and main¬tenance men. Large mine openings increase the amount of rock that must be handled in the development work, and they sometimes increase the dilution in stopes or rooms, de¬pending upon the dimensions of the ore zone. Providing adequate space for the unrestricted operation of large surface mining machines could, therefore, lead to more waste segregation and handling costs. It could also cause greater ore dilution that would result in a lower grade of ore being delivered to the processing plant. The tradeoffs between opposing cost factors must be reconciled and balanced to achieve the best overall cost of the crude ore, concentrates, or product. EQUIPMENT MODIFICATIONS Loaders and haulers designed for surface mining are seldom used underground in their standard con¬figurations without some modifications. If done, the modifications generally are made by the equipment dealer and/or the user, and the modifications usually include one or more of the following items: 1) The exhaust stack is lowered, and its direction is changed. Usually, it is repositioned horizontally to the rear, or it is fed into the engine fan to diffuse the exhaust gases. 2) The operator's position is lowered by either lowering the seat or changing the seat to a side mount. 3) The operator controls are adjusted to fit the new operator position. 4) Other components, such as the radiator and loader tower, are lowered. 5) Special bumper guards are mounted at the base of the radiator area. 6) An exhaust conditioner is mounted and con¬nected, using either a catalytic or a water-type condi¬tioner, or both. This usually is controlled by the safety and health regulatory authority having jurisdiction. 7) The positions of other components are rearranged

Jan 1, 1982

By Milton C. Head, Aulton E. Roland, William E. Hawes

INTRODUCTION Uranium mining in the Grants Mineral Belt has undergone changes from methods pioneered during the 1950's and has now become fairly standardized throughout the district. The orebodies vary in size and shape and have been most successfully mined by using modified room and pillar methods with pillar recovery. This paper will expand on methods and equipment that are being used and modifications of these that will increase productivity and efficiency. GEOLOGICAL BACKGROUND The petrology of the Grants Mineral Belt consists of alternating layers of sandstone and shales (mudstone), with occasional thin layers of coal. The sandstones are aquifers which are generally artesian to some extent. The shales are bentonitic and decompose into extremely sloppy mud when exposed to water. Figure 1 shows a typical geologic section. Most of the uranium produced in the Grants Mineral Belt comes from the Westwater Canyon member of the Morrison Formation and occurs as scattered ore bodies throughout the formation. This formation consists of layers of bentonitic shale and sandstone of varying degrees' of cementing and grain size. It is also a very significant artesian aquifer. The unconfined compressive strength of the various formations is not high, as shown in Table I. It is important to note that these represent average values and a great range may exist within a single formation, especially In the Westwater which is the ore formation. [ ]

Jan 1, 1982

By T. M. Kohler, G. L. Finfinger, D. M. Hyman, A. T. Iannacchione

The Bureau of Mines measured methane emission rates from an advancing salt face ranging from 15 to 56 ft3/ton (0.5 to 1.8 m3/t). Small room size, use of a continuous miner, and a well-defined ventilation system made possible air velocity and methane concentration measurements, These measurements, representing data from 18 production days, were con- ducted in an area of abnormally low grade salt, Methane emissions occurred primarily during the advance of the salt face by continuous miner.

Jan 1, 1982

By H. Colijn

The design of bulk materials handling facilities is greatly influenced by the handling characteristics of the bulk solids. For instance, free flowing materials need only small discharge openings in hoppers, while cohesive materials require large discharge openings. Chute and hopper slope angles are affected by the sliding friction coefficients. During the past ten years, large lignite deposits in Texas are being opened up for energy production, both in generating plants as well as in synfuel projects. The early plants have encountered many problems in handling and storing this lignite. This paper will provide some information about the handling characteristics of Texas lignite.

Jan 1, 1982

By Denis G. Maxwell

INTRODUCTION It is my intention in this paper to deal with gold, uranium, diamonds, platinum, manganese, chrome, vanadium and heavy mineral sands. These are the most important strategic minerals produced by the Republic of South Africa which are not covered in other sessions of this program. In each case I have high- lighted the statistics and peculiar advantages which combine to make South Africa a vital source of these minerals. Before proceeding to give individual attention to these minerals I believe it would be useful to define what I mean by 'strategic'. The Concise Oxford Dictionary defines strategic in the context of materials as 'essential for war'. However it is commonly used in a much broader sense than this (often, in fact, very loosely) and I prefer to define it as 'concerned with the acquisition and maintenance of power, whether economic, political or military.' A VITAL SOURCE In dealing with the individual minerals I have quoted statistics which are contained in Tables 1, 2 and 3. Table 1 clearly shows the absolute size of the South African mineral industry. However, it can also be used to demonstrate the importance of the industry to the South African economy if compared with the GNP in 1980 of about R60 billion. Table 4 illustrates clearly how important South Africa is as a supplier of these minerals to most of the important industrialized countries of the Western World. Gold If anyone had any doubts about the inclusion of gold in a list of strategic minerals I am sure that the above definition of 'strategic' will convince them that it certainly belongs there. Similarly no one is likely to have any doubt about the fact that South Africa is a vital source of supply. Tables 2 and 3 show that in 1980 we had 51% of the world's reserves and accounted for 55% of world production. The figures for the Western World are considerably higher. The only other major producer, of course, is Russia, with small but significant production in the Pacific Rim area coming from Australia, Canada, Latin America, Papua New Guinea, Philippines and the U.S. All South African mine gold production is shipped in bullion form containing about 88% gold and 9% silver to the Rand Refinery which is a modern refinery with large scale units capable of refining half a ton of bullion at a time. The Refinery is equipped to produce standard 'good delivery' gold as well as 9999 gold and 999 silver. The Refinery also produces the 22 karat blanks which are, used by the South African Mint to produce Kruger Rands. It goes without saying that the South African gold mining industry leads the world in all aspects of deep-level, narrow-reef mining technology. The industry's metallurgists, too, have a record of tenacious and continuing efforts to improve extraction to the level of the present finely honed efficient process used on all the modern mines. Uranium In 1980 South Africa had 14% of the uranium reserves of the Western World and accounted for 14% of production. In view of the paucity of data I am not in a position to estimate figures for the total world. All the other major sources of uranium in the Western World are situated around the Pacific Rim, with the U.S. and Canada already being major suppliers and accounting for 38% and 17% of Western World production in 1980. Australian production at the time was small but they have very large reserves and production is already rising rapidly. The U.S., Canada and Australia account respectively for 22%, 19% and 29% of the uranium reserves of the Western World. South Africa has been a major producer continuously for 30 years. Nearly all the uranium produced, amounting to about 115 000 tons up to the end of 1981, was a by-product or co-product of gold extraction. During that time the industry has frequently led the world in technological innovation, and has established a reputation as a reliable producer of a consistent, high-grade product. In the latter respect, it is helped by the fact that production is marketed by one company, Nuclear Fuels Corporation, which also blends, dries and calcines the product from the individual mines and samples and assays it before shipping. Diamonds Diamonds are the rock on which the South African mineral industry is founded. The discovery of diamonds in 1866 gave rise to the first major mineral industry in the country and the profits from diamond mining helped to finance the gold mining industry 20 years later. Although now overshadowed by gold, diamonds are still very important in the overall picture of mineral production and exports, as can be seen in Table 1. There are really three separate diamond markets - gem, natural industrial, and synthetic - and, to be meaningful, statistics should be provided separately. Unfortunately separate figures are not available. The figures in Tables 2 and 3 show that, for gem and natural industrial together, South Africa ranks third in the world in production and second in reserves. South Africa is a major producer of synthetics and probably ranks second in the world after the U.S. Recently, of course, Australia was the scene of a major diamond discovery and will soon become the only

Jan 1, 1982

By Young C. Kim

Use of geostatistics to solve mining problems is gaining importance as the cost of developing new mines is increasing and there is a need to mine more marginal deposits. But, until recently, coal companies have shown little or no interest in geostatistics. However, the stringent quality controls on coal burning has led to a surge in interest in improved methods for estimating clean coal characteristics. Until now, most of the geostatistical applications have centered on the problems of estimating in-situ coal characteristics (Sabourin, 1975; Wood, 1976, 1979; Fang and Stark, 1976; Pauncz and Nixon, 1979; and Knudsen et al., 1980). Little work has been done in applying geostatistics to coal washability, except that by Armstrong (1980). Applying geostatistics to coal washability basically means the estimation of cleaned coal characteristics, with the aid of geostatistics. Cleaned coal estimation plays a very important role in overall emission control strategy, as can be seen by the general flow diagram of such a strategy shown in Figure 1. The scope of this paper is limited to one aspect of the overall emission control strategy shown in Figure 1; namely, the prediction of cleaned coal characteristics using geostatistics.

Jan 1, 1982

By R. E. Le Messurier

GENERAL DESCRIPTION The mines are located at Broken Hill in the western part of New South Wales, Australia, 930 km west¬northwest of Sydney. Mining Methods Where pillars must be left between stopes, extraction of a block of ore between two or more levels is carried out in stages: 1) Stopes are mined overhand by horizontal cut¬and-fill stoping, or by long-hole stoping. The various methods of horizontal cut-and-fill stoping used are desig¬nated as: -Loader cut-and-fill stoping with horizontal blast¬holes and diesel load-haul-dump (LHD) units. -Open stoping with horizontal blastholes and com¬pressed air or electric scrapers, or with diesel or electric LHD units. Square-set timber stoping, where ground condition precludes open stoping. The backs are sup¬ported with timber square sets. Pattern rockbolting of the backs may be used as an intermediate stage between open stoping and square-set stoping. 2) Vertical pillars are mined by undercut-and-fill stoping or by vertical crater retreat stoping. 3) Where a horizontal pillar has been formed below the level above the primary stope, this level pillar, usually 6.1 to 8.2 m in depth, may be mined by over¬hand square-set stoping or by undercut-and-fill. Long-hole stoping is used at the Zinc Corp. (ZC) and New Broken Hill Consolidated (NBHC) to mine parts of the zinc-rich A and B lodes. Drilling is carried out from drill drives and, in some cases, sills. Hole sizes used are 165 mm (61/2 in.), 110 mm (4'h in.), and 65 mm (21/2 in.) nominal diam with hole lengths being limited to 50, 30, and 20 m respectively. Ammonium nitrate-fuel oil (ANFO) and water gel explosives are used. Broken ore is loaded from drawpoints at the bottom of the stope using rubber-tired diesel-driven LHD units which deliver ore to an orepass. Annual production at Zinc Corp. and NBHC accord¬ing to mining method is given in Table 1. At Zinc Corp. mining is being carried out at depths varying between 200 and 832 m. At NBHC it ranges from 528 to 915 m below the surface. The average travel time to the stope is 30 to 45 min. GENERAL ORE BODY REQUIREMENTS Size, Shape, and Dip There are six separate lodes which carry minable ore in the mines of Zinc Corp. and New Broken Hill Consolidated. The lowest of these and the main ore bodies presently being mined at Zinc Corp. are the lead lodes, consisting of a siliceous fluoritic ore body (No. 3 lens) and overlying it a calcite rhodonitic ore body (No. 2 lens). Each possesses characteristic ratios of lead, silver, and zinc, although the grade within each lens is variable, in places being as high as 30% Pb. There are also low¬grade portions which consist chiefly of poorly mineral¬ized rhodonitic material. No. 3 lens terminates within the Zinc Corp. leases, while No. 2 lens continues into the NBHC leases where it continues to provide a significant proportion of pro¬duction from the mine. Overlying the No. 2 lens are the various zinc-rich ore bodies. In ascending sequence these are lower No. 1 lens, upper No. 1 lens, A lode, and B lode. A typical assay for the small No. 1 lens group ore bodies is 8% lead, 50 g/t silver, and 20% zinc. The `A' lode is a large low-grade ore body in which the higher grade sections assay 4% lead, 30 g/t silver, and 10% zinc; larger quantities of lower grade ma¬terial also occur. B lode, the main zinc lode, typically assays 5% lead, 30 g/t silver, and 17% zinc. B lode increases in size as it extends south, and in NBHC is a major ore body, contributing about 52% of the production. All the lodes pitch south, the average pitch being 0.52 rad (30°) in the Zinc Corp. leases and rather flatter than this in the NBHC leases (see Figs. 1-3). The ground is all competent rock. Production requirements at Zinc Corp. are 900 000 t and 1 200 000 at NBHC.

Jan 1, 1982