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By Tomek Ulatowski

INTRODUCTION In 1974, Industrial Miners Mexico, S.A. (IMMSA), agent for the borrowers, was the largest privately-held mining, smelting, and refining company in Mexico (accounting for 32% of Mexico's nonferrous metal and coal production in 1974), the fourth largest company in terms of sales, and the second most profitable company in Mexico, excluding government wholly-owned and operated industries. The company was engaged in the mining, smelting and refining of coal, copper, fluorite, gold, lead, silver, zinc and related by-products for domestic consumption and export. A combination of favorable factors led IMMSA to propose an investment plan amounting to US$286 million for 1974 through 1978, of which US$150 million was to be financed. These factors included: Substantial profits in 1973 and 1974 Positive near-term outlook for metal prices Success of the reinvestment program in increasing productivity Substantial additions to proved reserves during 1973-1974 and Fiscal incentives provided by the Mexican government to stimulate investment in the mining industry. The primary purpose of the investment program was to construct a new electrolytic zinc refinery and to expand and modernize many of the company's existing mining and refining facilities. THE BORROWER Company History Compania Miners Mexico, S.A. was incorporated in the city of Monterrey in 1918 as a wholly-owned subsidery of ASARCO Inc. (formerly American Smelting and Refining Company, New York) for the purpose of mining and processing non-ferrous metals and related products. In compliance with the Government's Mexicanization program, ASARCO Inc. divested itself of 51% of its equity in Compania Miners Asarco, S.A. on June 30, 1965. Subsequently, ownership in the divested share was apportioned as follows: 15% ownership in Compania Miners Asarco, S.A. to a group of private investors, and 36% in trust for subsequent public sale. The company's name was changed to Asarco Mexicana, S.A. in 1965. Mexican ownership in Asarco Mexicans, S.A. was increased to 51% in 1967, following the purchase of the 36% share ownership held in trust, and then to 66% in 1974 when ASARCO Inc. divested itself of an additional 15% of its holdings in Asarco Mexicans, S.A. Following its 1974 divestiture of 15% of Asarco Mexicans, S.A., ASARCO Inc's ownership in Asarco Mexicana, S.A. was reduced to 34%. In 1974, the company changed its name for the second time to Industrial Miners Mexico, S.A. (IMMSA). Fiscal Agreement IMMSA entered into a fiscal agreement with the Mexican government in 1969. The agreement, which was renewed in 1974, provided for 100% of the production and export tax corresponding to the federal government with a minimum of 50% of the amount refunded to be reinvested in fixed assets. Further, the agreement permitted the company to

Jan 1, 1985

The cleaning of copper containing fayalite slag using a CuFe alloy was studied under an oxygen pressure ranging from 10-7 to 5 X 10-11 atm at 1200º c. The reduction of copper from fayalite slags by Cu-Fe alloys was found to be very effective. For example, at a P 02 of 10-7 atm, the copper content in the slag was reduced from 4.1 to 0.402 wt. percent after 90 min. of reaction time using a Cu- 5.27 wt. percent Fe alloy. The copper reduction rates were found to be independent of P02 in the gas phase when using Cu-Fe alloys which exhibit an iron activity of greater than 0.4. A mechanism for slag c1eaning is proposed based on the concept that the Cu-Fe alloy lowers the oxygen potential of the slag according to Eq.1 1, fol1owed by the reduction of cuprous oxide by wustite as shown in Eq.2. Here X represents element X in the alloy phase while (X) represents the element in the slag phase. The copper and iron transfer behaviour obtained in this study are explained by a ?Stepwise equilibrium model.

Jan 1, 1985

By D. L. Sawyer

The Bureau of Mines studied alumina extraction from uncalcined, kao-linitic clay at temperatures from 1000 to 2500 C using 20-or 27-wt-pct-HCI concentrations and with an acid-to-clay ratio of from 0.8 to 1.4 times stoichiometric. Autogenous digestion pressures ranged from atmospheric pressure to about 900 psia. Extraction of 96 pct of the alumina was obtained by HCI leaching at temperatures and leaching times that varied from 1000 C for 120 h to 2000 C for 15 min. Hydrochloric acid stoichiometry of the reaction A1203'2Si02'2H20 + 6HCI + 2AICl3 + 2Si02 + 5H20 was studied at different temperatures and leaching times in a 750-mL tetrafluoroethylene-polymer-lined autoclave. A combination of high temperature and 20 wt pct excess HCI promoted rapid and almost quantitative extraction of alumina (99 pct in some tests). Additional Bureau data obtained with 35-mL tantalum bombs and leach-ing tests with added fluoride are also provided. At high temperatures, the addition of fluoride did not result in a significant improvement over HCI alone and was deleterious to the filtering properties of the digest residue.

Jan 1, 1985

By S. M. Bishoff

The disturbance of surface land to support the underground mining of coal requires several hundred acres to produce easily in excess of $1 billion in sales at a moderately sized mine over 20-30 years. Due to the recent influx of environmental legislation, these surface operations must now undergo complete reclamation upon permanent cessation of production. This reclamation procedure has become so complex that the cost of reclamation must be a major consideration in the design of a new mine. This presentation will discuss these costs as they may be methodically evaluated and surcharged as a percentage of the product price. When placed in the proper, logical perspective, it is anticipated that the obstacles involved in this process may be minimized.

Jan 1, 1985

By Jon C. Volkwein

The Bureau of Mines and many member companies of the Industrial Sand Association have been working in several areas to reduce personal exposure to respirable dust. Areas investigated include ventilation, modification of hardware, moisture addition to the product, and improved housekeeping practices. Ventilation systems have been devised and shown to contain 100 pct of a tracer gas released within the hood. An industrial clean air island has been developed and shown to reduce dust levels 90 pct at the opera- tor's position, Modification of hardware on a bag filling machine has been demonstrated to reduce dust 83 pct at the machine operator's lapel. This particular development has been termed a significant advancement in the state-of-the-art of bag filling by industry representatives. Addition of moisture to dried product materials has been tested with results showing dust reductions of 90 pct are possible!, Control of the moisture addition method still needs refinement and costs may be prohibitive. Dust sampling results clearly show the benefits of housekeeping practices such as building cleaning and vacuum sweeping. Rotation of work schedules is also effective for reducing personal exposure.

Jan 1, 1985

By S. M. Hsiung

This paper presents the results of an extensive study concerning a series of roof falls in a room-and-pillar coal mine located in West Virginia. Three dimensional finite element modeling was employed to identify the possible causes for the roof falls. The effectiveness of possible roof control measures for alleviating or eliminating the adverse roof conditions is analyzed, discussed, and compared. The best mining alternatives are recommended. It has been found that large overburden depth and typical roof geology are the major reasons for the roof falls. Angle bolting may not solve the problem encountered in the mine studied. Changing the mine layout currently used in the mine appears to be the best alternative. The recommended pillar size and entry width which will eliminate the problem completely are 90 ft. x 90 ft. and 14 it., respectively.

Jan 1, 1985

By R. O. Y. Breese

Perlite is a hydrated acid volcanic glass that has been derived from the alteration of obsidians through incorporation of water into the silica structure. It is distinguished from other members of the water-bearing natural glass family by total water content, characteristic fracture and luster. The distribution of major occurrences worldwide is associated with silicic Tertiary through early-mid Quaternary volcanics related to plate movement. The No Agua dome and flow complex is one of the most highly studied perlite occurrences in the world. It clearly exhibits lithologic and textural zonations that reflect simple cooling history. Similar features are commonly observed within other perlitized, extrusive glass selvages. This paper briefly discusses current thought regarding geologic occurrence, the hydration process and the modes of origin with special emphasis on No Agua.

Jan 1, 1985

By Jeffrey Y. Foley

Chromite deposits along the Border Ranges Fault in southern Alaska were investigated by the Bureau of Mines. This report, part 1 of a two- part series, describes the deposits. Part 2 describes the mineralogy and the results of metallurgical tests. Fieldwork began in 1981 and continued through 1983. Ninety-four subeconomic podifom chromite deposits in eight mafic-ultramafic complexes were investigated. Previously unreported chromite deposits at Red Mountain on Kenai Peninsula, on Kodiak Island, and near Tonsina are described. Deposits range in size from less than a thousand tons to over 1.25 million tons of contained chromic oxide (Cr203). Grades range from about 5 to 10 pct chromite. Excluding all deposits more than 10 miles from tidewater or existing roads and all deposits containing only chemical- or refractory-grade chromite, about 2,200,000 tons of Cr203 are contained in 41 hard-rock deposits. A placer deposit contains an additional 556,000 tons. These 42 deposits constitute a subeconomic indicated and inferred reserve sufficient to meet the Nation's chromite demands for about 4 yr, or the metallurgical industry's demands for over 5 yr, at 1981 consumption rates.

Jan 1, 1985

By Borsaru M

The production of high-grade calcined bauxite is very dependent on the moisture content of the final product. Existing procedures rely on the ignition of small samples to monitor the effectiveness of the calcination process. The results obtained by this gravimetric technique are several hours behind production and do not permit regular adjustment of the furnace to optimize the control of the chemically bound water content (LOI).To provide rapid and hence more relevant results, a neutron moderation technique has been developed for measuring the LOI of bulk samples of calcined bauxite while they are still hot. The method uses fast neutrons from an 241 Am-Be neutron source to irradiate the samples, and the backscattered thermal neutrons detected are a measure of bound moisture content.The rms deviation between neutron and conventional determinations of LOI, in 15 calcined bauxite samples, was 0.08 per cent LOI over the range 0.1 to 0.9 per cent LOI. When allowance is made for the rms error in the ignition method, the error in the neutron method is found to be 0.07 per cent LOI.

Jan 1, 1985

By R. W. Draves

Planning and testing in advance of the mining operation are essential. This advance work can involve physical and chemical analysis of overburden cores, field test plots, green- house studies or any of a multitude of other baseline data collection activities. This paper presents the results of Central and South West's field test plots and how they relate to topsoil substitution. Besides the obvious need for testing in advance of mining, there are the inevitable regulatory requirements. Quoting from the office of Surface Mining Regulations concerning topsoil substitution: 216.22(e) TOPSOIL SUBSTITUTE AND SUPPLEMENTS -Selected overburden materials may be substituted for or used as a supplement to topsoil if the office determines that the resulting soil medium is equal to or more suitable for sustaining revegetation than is the available topsoil and the substitute material is the best available to support revegetation.

Jan 1, 1985

By Yoginder P. Chugh

The control of soils has been found to be one of the highest priority factors influencing the return of reclaimed prime farmland to production. The compaction of soil is primarily a result of the movement of high ground pressure wheel scrapers and dozers over soils during the soils replacement and regarding process and occurs to a maximum depth of about 1.2 m (4 ft) The deleterious effects of soil compaction can be controlled by deep soil loosening to a depth of 1.2 m (4 ft). Most farm tillage equipment can only loosen soils to a maximum depth of 0.33 m (1.0 ft). Deeper soil loosening equipment, in the 0.33-1.2 m (1.0-4.0 ft) range is currently avail- able in the U.S. and abroad which may have potential for application on reclaimed prime farmland. This study has appraised such available equipment and the results indicate that a few manufacturers in the U.S., West Germany, and England market static and vibratory soil loosening equipment which have potential for deeper soil loosening of reclaimed prime farmland.

Jan 1, 1985

By Paul L. Broughton

"IntroductionThe coal deposits, all of lignite rank, of economic interest in Saskatchewan are associated with the Ravenscrag Formation (Paleocene). Several Cretaceous formations have less significant lignite accumulations (Broughton, Irvine and W'hitaker, 1974). The Swan River Group (lower Cretaceous) and Judith River Formation (upper Cretaceous) have the only coalbearing strata in the shallow subsurface of central Saskatchewan. The Swan River Group coalfield is relatively small and underlies only 15 sq km of the surface approximately 40 km south of La Ronge, Saskatchewan. An estimated 36 billion short tons are within 45 m of the surface. No reserve estimates are known to have been calculated for the coal-bearing Judith River Formation exposed at the surface in the vicinity of the South Saskatchewan River valley in west-central Saskatchewan. Although no coalfields have been delineated, lignite beds up to 1.8 m thick have been intersected in test holes. The coal-bearing upper Cretaceous and lower Tertiary strata of the northern Williston Basin extends the full width of southern Saskatchewan for 650 km, and from the United States border 120 km north to 50° latitude (Fig. 1). Only the coalfields of the Ravenscrag Formation, because of their economic interest, will be considered further. There are four major coalfields. They are, from east to west: Estevan, Willow Bunch, Wood Mountain and Shaunavon (Cypress) coalfields. Cumulative lignite seam thickness for each basin is 10 -15 m (Figs. 2 and 3). The origin of each coal basin, resource calculations, seam stratigraphy, and mining activity are discussed. Regional Setting The Williston Basin is an ellipsoidal depression in the Precambrian basement, centered in western North Dakota and marginal to the exposed craton of northern Saskatchewan and central Manitoba (Fig. 1). The sediments of the basin range from Cambrian to Pleistocene in age and have a maximum known thickness of 4614 min western North Dakota. A maximum of 3200 m is recorded in southern Saskatchewan. Most structural deformation is late Cretaceous to early Tertiary (Paleocene) in age, coinciding with the Laramide Orogeny. The pre-Laramide Williston Basin, with a depocenter near Williston, North Dakota, began developing during the middle Ordovician, or possibly earlier."

Jan 1, 1985

By Waters CA, Happ JV

The debismuthising plant, commissioned in 1980, is based on the Kroll-Betterton process for preliminary bismuth removal with subsequent antimony treatment for fine debismuthising. Bullion flowrate is continuous and the plant was designed to achieve low bismuth lead product at rates of up to 20 tonne/h.Development of the first stage of the operation has enabled reliable operations at 25 tonne/h to be achieved. Thesedevelopments also introduced the opportunity to treat higher bismuth bullion at up to 35 tonne/h when operating the first stage only to produce product lead of 0.029 per cent Bi, meeting the ASTM B29-55 Corroding Lead Standard.

Jan 1, 1985

By Peter H. Fletcher

THE ECONOMIC THEORY It will assist in the understanding of the Resource Rent Tax ("RRT") proposals in Australia if the economic theory behind the tax is briefly explained. The idea goes back to the concept of rent put forward by the nineteenth century economist David Ricardo. His analysis was broadly as follows: A tenant who farms land which is just on the margin of economic viability cannot afford to pay his landlord any rent, because the value of the crop produced by such marginal land is equal to the cost of producing the crop, plus the cost of keeping the tenant alive. There is nothing left out of which to pay rent to landlord. A tenant who farms good land can afford to pay his landlord rent -- but the maximum amount of rent that he can be asked to pay is the excess of the value of the crop produced by the good land over the cost of producing the crop and of keeping the tenant alive. Adapting this theory to the taxation of mining projects, modern economists who favour this system of taxation say that a profitable mining (or resource) project produces rent in the Ricardian sense. The amount of the rent is the excess of the profits by the project over the amount of profit which is required to attract the taxpayer to invest in the project in the first place. This explains why the tax is called "Resource Rent Tax". PAPUA NEW GUINEA PRECEDENT Although Papua New Guinea ("PNG") is now independent of Australia, there are still close links between the two countries, and strong similarities between their respective tax regimes. PNG introduced an Additional Profits Tax ("APT") in 1978. In many respects, Australia's RRT proposals follow the precedent set by PNG1s APT. However, in practical terms, not a great deal can be learned at this stage from PNG's experiences since, according to the writer's understanding, no PNG mining project has yet paid any APT. The Bougainville mine is not liable to APT, being subject to tax under its own separate Act, which contains a different formula. Outline of PNG Additional Profits Tax. PNG has two versions of Additional Profits Tax ("APT) - one applying to general mining, the other to petroleum mining. The two versions are very similar. The general mining version is described below. The tax applies on a licence by licence basis. This means that losses on Licence A cannot be offset against profits on Licence B. Expenditure relating to two or more licences, is apportioned "in such manner as the Chief Controller thinks reasonable". Tax is levied on the "accumulated value of net cash receipts" at the rate of (70 - n)% where n=the rate of income tax. The accumulated value of net cash receipts ("av") is calculated as follows: Calculations commence from the first year in which substantial expenditure was incurred on the construction of facilities for the carrying out of mining operations on the licence. For that year the av consists of the total allowable expenditure to date on that lease. For the second year, the av is the av at the end of year one indexed in accordance with the statutory formula set out below, plus the total allowable expenditure in year 2. For year 3, the av is the av at the end of year 2 adjusted by the index factors, plus the total allowable expenditure in year 3. This process is repeated year after year. When the licence starts to earn revenue, the revenue is deducted from total allowable expenditure for that year. If revenue exceeds total allowable

Jan 1, 1985

By Peter J. Franklin

"Short-term mine planning of open pits is an activity that has historically been carried out by hand. Typically, the use of computers has played little part in this type of mine planning. This paper describes the objectives and the procedures involved in short-term mine planning, comments on the type of computer systems available, and describes in detail a computer-aided short-term planning and scheduling system known as STEPS.IntroductionThe mine planning department of any o pen-pit mining operation performs a wide variety of different tasks. However, their primary concern is the preparation of detailed long-and short-term mine plans. These mine plan s will define the long-term operating strategies and definitive everyday working plan s for the ongoing development of the open pit.In this day and age, when operating costs have spiralled upwards due to inflation , and product revenues have decreased due to depressed economies and poor markets, it is vitally important for all aspects of the mining operation, including mine planning, to be efficient and cost effective.There are numerous options available for planning engineers when generating a mine plan. A cost effective mine plan must investigate all these options and select the optimum. When using manual planning techniques, it is often impossible to evaluate all the available options. To do this, and to produce an optimum mine plan, a computer is required.This paper discusses mine planning, with emphasis toward the short-term plan and comments on how the processes may be computerized. It also describes in detail, a computer software system called STEPS, which has been designed as an interactive graphics, computer-aided short -term mine planning and scheduling tool."

Jan 1, 1985

By Michael R. Cartwright

The Gold Acres outcrop was located by Lee Lakin in 1922, according to Mr. H. W. Treweek. There was no activity, however, until 1935, when prospect drifts and pits penetrated the deposit. It was then drilled by the Willow Creek Mining Company. Beginning in the late 1930s and continuing to the late 1940s more than 150 churn drill holes were drilled in the Gold Acres area. From this drilling came what is now known as the London Extension pit. Only oxidized ore amenable to cyanide vat leaching was mined during this time. Our records indicated that this period of mining removed some 1.4 Mt (1.5 million st) of ore at an average grade of 0.006 kg/ t (0.2 oz per st). Union Pacific and Newmont Mining Company worked in the area prior to acquisition by the Cortez Joint Venture. Union Pacific drilled a number of core holes in the area. The unoxidized nature of the ore, small tonnage, and low grade undoubtedly prevented mining at this time. From these indications of mineralization shown by previous companies, the Cortez Joint Venture developed and mined 2 Mt (2.4 million st) at 0.005 kg/t (0.15 oz per st) in the Gold Acres pit. This pit is located immediately southwest of the older London Extension pit. Cortez Gold Mines has continued to drill to the west and south of these pits along the downdip continuation of the former ore bodies. The downdip extension is unoxidized and more metallurgically difficult than the normal Carlin type ores, but, more than 2.4 Mt (2.7 million st) have been outlined. It depends now upon the gold price and milling costs to turn this mineralized area into an ore body. A possible lesson to be learned from this deposit is that continued mining success depends upon an ongoing adequately funded exploration-development-metallurgical research program. These three disciplines must always be present to locate the mineralization and to turn this mineralization into ore. [ ]

Jan 1, 1985

By Mark R. Pettitt

The results of an extensive research and development program to reduce the noise generated during coal cutting are presented. The characteristics and magnitude of continuous miner coal cutting noise sources are defined. This work consisted of development of a simulated coal ,cam to facilitate above-ground coal cutting tests, noise measurements in a reverberant acoustic chamber during simulated mining operations of a continuous miner (cutting the simulated coal scam), and noise measurements in an underground coal mine during continuous miner operation. In-mine and laboratory test results were in excellent agreement for both A-weighted overall levels as well as A-weighted one-third octave band spectra. Methods to reduce coal cutting noise are presented. These methods take full advantage of the dynamic characteristics of the forces generated during coal cutting. Dynamic cutting force isolation was shown to be a very effective technique. Finally, a continuous miner was equipped with a cutter head that incorporated (among other design factors) cutting force isolation. Successful, lung term, in-mine use of the cutter head demonstrated coal cutting noise at the operator's station of less than 90 dBA and 50% coal, 50% rock cutting of less than 93 dBA.

Jan 1, 1985

By Armin C. Supp

Since 1975, about a dozen high capacity flotation plants have been installed in the Ruhr district. Depending on the size of the preparation plants, the design capacity of the flotation section is between 100 - 150 t/h. The flotation units generally comprise rougher and cleaner stages in which 5 to 6 or 4 to 5 agitators respectively are arranged in line. The unit volume allocated to each agitator is up to 16 m3. The type of flotation machines, the design of these plants and their instrumen¬tation and control equipment are described in detail. The run of mine coal in the Ruhr district is characterized by a wide variety of the volatile matter. Generally, a distinction must be made between coals with more than 30 - 35% V.M., which are preferably used in power station, and coal with lower V.M. content, which are preferably used as coke-oven feed. The difference between these coals in respect to grain-size distribution, ash cotent and flotation properties will also be described in detail.

Jan 1, 1985

By Johann Steynberg

The design and construction of a Concentrator based on initial pilot plant work is rarely perfect. Palabora's plant was no exception although the basic objective to produce copper in a safely conservative manner was certainly achieved in a profitable manner. identification of the metallurgical and mechanical deficiencies of the plant through operating experience and a better concept of the minerology of the orebody enabled the development of a more efficient process both in terms of the metallurgical performance and cost effectiveness. To maintain and improve this level of efficiency, continuous inspection and revision of the plant metallurgy and engineering standards is required. In this presentation a few of the investigations and changes are described: 1.0 Alternative methods to restrict and eliminate the detrimental effect of critical size material on the performance of an autogenous mill. 2.0 An analysis of the environmental condi¬tions in Palabora's grinding circuit and the introduction of high chrome balls as grinding media. 3.0 The role of magnetite in the beneficiation process at Palabora. 1.0 Alternative methods to restrict and eliminate the detrimental effect of critical size material on the performance of an autogenous mill.

Jan 1, 1985

By B. C. Darst

Developments in the agricultural use of potassium (K) have been based solely on the essential role K plays in crop production. Crop plants cannot complete their normal life cycle if K is deficient or absent. In fact, no essential plant nutrient other than nitrogen is required in greater quantities. Table 1 shows the amounts of K some crops take up from the soil. Although the exact functions of K in the plant are not well known, its primary role seems to be tied to plant metabolism. Potassium is vital to the process of photosynthesis. When K is deficient, photosynthesis declines, but respiration increases. These two K-deficient conditions. . . reduced photosynthesis and increased respiration ... lower the plant's carbohydrate supply, the end result being poor agronomic crop production. Potassium is also essential to several other plant functions, including the following: 1) Protein synthesis. 2) Water use efficiency, through the influence of K on stomata opening and closing, to maintain the turgidity in plant leaf cells. 3) Translocation of heavy metals such as iron and zinc. 4) Ionic balance. 5) Control of enzyme reactions within plants.

Jan 1, 1985