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By P. M. Daignault

"Fording Coal Limited is one of Canada's largest producers of metallurgical coal for the export market. Medium- to highvolatile coals are mined at its Fording River operations in southeastern British Columbia. This paper discusses some of the mine design and production related problems encountered, and how they have been resolved. Other aspects of the operation such as geography, geology and standard mining methods employed are also covered.IntroductionFording Coal Limited was formed in 1968 to mine and market metallurgical coal resources held by the company in the East Kootenay region of southeastern British Columbia<1>. The company, at its Fording River operations, holds approximately 19,635 hectares of coal lands, having an estimated resource of 3.5 billion tonnes of metallurgical coal. Total reserves are approximately 520 million tonnes.Fording Coal is owned 600Jo by Canadian Pacific Enterprises Limited and 400Jo by Cominco Limited. Cominco itself is owned approximately 540Jo by Canadian Pacific Enterprises. The company, originally staffed and managed by Cominco, has been independent since January 1978, with its own board of directors, management, staff and employees. The head office is in Calgary, Alberta. The Fording River operations are located in British Columbia, approximately 70 km north of the Crowsnest Pass, near the Alberta/ British Columbia boundary, only 150 km by air and 320 km by road from Calgary.A contract was signed in 1969 with the Japanese steel mills to provide 45. 7 million tonnes of metallurgical coal over fifteen years, commencing in 1972, at an annual rate of 3 .05 million tonnes per year. The mine is presently expanding annual production capacity from the original 3.0 million long tons (3.05 million tonnes) to in excess of 5.0 million tonnes.Concurrent with this production expansion, a vigorous marketing effort has diversified Fording's customers to include additional countries in the Pacific Rim area. Three cleaned coal products are now marketed compared to the single ""standard blend"" product originally shipped to satisfy the Japanese contract. The product specifications are listed in Table I."

Jan 1, 1985

By Donald J. Worth

INTRODUCTION Minera Real de Angeles makes a very interesting case study in more ways than one. To begin with, it represents the first time a bulk silver deposit has been put into production in Mexico. Second, the feasibility and financing stage spanned a period when the silver price ranged from $4 to $40 per ounce. Third, there was a major devaluation of the peso and a financial crisis in Mexico at completion of the project. Fourth, the composition of the partnership (a major Canadian mining company, a major Mexican mining company and the host government&apos;s own mining entity) is worthy of note. This paper gives considerable background on the project and how it came to fruition. The political risk aspects and how the major provider of funds perceived Mexican risk at the time of decision to participate and afterwards are highlighted. LOCATION AND HISTORY The Real de Angeles deposit is located at an elevation of 2300 meters in Central Mexico in the State of Zacatecas (Figure 1). The closest village is Noria de Angeles, three kilometers to the north. The closest cities are Aguascalientes, Zacatecas and San Luis Potosi. The first-mentioned is one hour to the southwest by automobile over good roads. Exploitation of the vein outcrops probably began towards the end of the sixteenth century by the Spanish. Evidence of past mining activity is shown by numerous shafts, manways, dumps and ruins. Also, there were remnants of two rudimentary concentrating mills now obliterated by pit development and in the nearby town of Noria de Angeles the ruins of a small smelter still exist. Compania Minera Gamma, an affiliate of a major international mining company, investigated Real de Angeles from 1969 to 1971. Its evaluation program included 20 drill holes and comprehensive geological engineering and metallurgical studies. The results were not encouraging and the option on the property was dropped. In late August 1973 geologists representing Placer Mexicana which was later renamed Explomin were advised of the availability of the property and liked the prospects sufficiently to make an option payment soon due and to agree to outright purchase by year-end. A series of 34 holes were drilled by Explomin and a preliminary study indicated that the prospect had mine-making potential if the silver price was right. [ ] DESCRIPTION OF THE PROJECT Real de Angeles is best described as a large, low grade open pit silver mine because at today&apos;s prices approximately 70% of the realizable revenue is derived from that metal. One must also keep in mind that the operation produces two concentrates - a lead concentrate with high silver content and

Jan 1, 1985

By Robert Gillham, Victoria Yablonsky, Grover R. Castle

INTRODUCTION The commercial paper market, unique to the United States, is a direct exchange of funds between high-grade borrowers and large lenders; because it eliminates both the bank&apos;s role as middleman and also some significant transaction costs, commercial paper is the lowest cost short term instrument in the world. For this reason, virtually all borrowers would like to enter the market, but only issuers with the highest rating from Moody&apos;s and Standard & Poor can attract purchasers at the best rates. COMMERCIAL PAPER The commercial paper market, in existence for over 100 years, has traditionally been used for short-term financings, with most paper maturing within 30-45 days. Under the U. S. Securities Act of 1933, (section 3(a)3) industrial paper can avoid registration only if it matures within 270 days and is used for current transactions. It was first used to finance the short-term seasonal working capital needs of manufacturing companies. Since World War II, commercial paper use has grown steadily, serving in the 1950&apos;s as the market in which finance companies financed the explosion in consumer credit purchases of heavy consumer durables. LETTER OF CREDIT BACKING As far as is known, the use of letters of credit to support energy-related commercial paper began about 13 years ago with an arrangement to finance the nuclear fuel for Con Edison&apos;s Indian Point 3 Plant. Goldman, Sachs was the architect of this financing and Chemical Bank provided the letter of credit support. After an early burst of interest, this type of financing wobbled severely in the difficult credit markets of the mid-seventies before regaining serious momentum in 1976 and 1977. A mining project would not normally qualify as a borrower in the commercial paper market because of its credit standing and because its large capital needs require long term financing. However, lately, commercial paper has begun to take the place of a bank term loan in limited recourse project financings. L/C backed commercial paper took this new and startling turn in 1982 when it was used as part of the $700 million financing for the development of the Newlands-Collinsville coal mines of Mount Isa Mines Ltd. in Australia. This was the first use of L/C backed commercial paper in a long-term limited recourse project financing. First Boston acted as financial advisor and, again, Chemical Bank provided sole letter of credit support of $155 million. The $785 million BHP financing for the acquisition of the Queensland (Australia) coal assets of Utah International from General Electric Company followed the next year; there we acted with two other Front Banks to provide $270 million of L/C support. These two important transactions indicate that not only has commercial paper become an integral part of a long-term financing package, but also that it is no longer the exclusive domain of the best known U. S. companies. Lesser-rated companies and a multitude of foreign borrowers have gained access to this "exclusive club." How has this become possible? OPERATION OF AN L/C An instrument of the commercial banks, the "direct pay" letter of credit, has enabled lesser-rated companies to issue commercial paper in their own names. The letter of credit allows the issuer to substitute the credit rating of the supporting bank for its own. The L/C in effect allows a lesser-rated company to rent the bank&apos;s credit rating. This upgrading is possible because the bank is unconditionally obliged to pay the note-holders at maturity and then turn to the Issuer for reimbursement. The Issuer commonly "rolls over" a new short-term issue and reimburses the supporting bank from the sale of the new issue until cash flows from the project allow the borrower to reduce the level of paper outstanding. The commitment for an L/C facility, up to 12 years in the case of the Broken Hill transaction, governs the life of the commercial paper tranche of the financing. The term of the L/C commitment thus has the power to extend the ordinary 30-45

Jan 1, 1985

By Thomas J. Keefe, O&apos

The effects of cobalt, B-naphthol, glue and antimony on the polarization behavior of zinc sulfate electrolyte were investigated. It was found that B-naphthol was beneficial in reducing the detrimental effects of cobalt while antimony and excess glue were each harmful. Since the nu cl eat ion over potential was insensiti1ve to coba1t, other regions of the polarization curve were used to indicate electrolyte balance. The low? current density area occurring in the reverse or anodic sweep direction was? often an indicator when an ?unstable condition existed. The two parameters evaluated were the degree of inflection in the polarization curve in the low current density region during scanning and the rate of current rise observed when the sample was potentiostated at -0.781 Volts (SHE). Using this technique, a two-additive system was shown to be desirable to control cobalt and antimony containing electrolytes. The structure of the deposits was examined using scanning electron microscope techniques.

Jan 1, 1985

By Hal D. Peterson

In research sponsored by the Bureau of Mines, a technique was developed for simulation of heap leaching on uranium ores. The equipment used for this simulation consisted of 2-ft-diam columns, constructed in sections, such that ores as coarse as minus 4-in could be treated in bed depths ranging from 8 to 18 ft with test condition variations. The technique consisted of the separate steps of ore preparation, column loading, charge wetting, leaching, washing, and residue recovery. For the ores studied, sulfuric acid was found to be generally superior to alkaline lixiviants. The rate of uranium extraction by acid leaching proved" to be primarily a function of percolation rate, alkalinity of the ores and oxidant requirements of the ores. Column leaching was closely comparable to field-scale heap leaching in terms of uranium extraction rate and recovery results. Acid and oxidant requirements were lower for the field-scale operation. All column tests, as well as the field-scaly heap, achieved in excess of 96-pct uranium extraction on a Bear Creek, Wyoming ore.

Jan 1, 1985

By Howard Keele

"The Whitewood Mine near Edmonton, Alberta, is owned by TransAlta Utilities Corporation and operated by Manalta Coal Ltd. Approximately 2 million tonnes of sub-bituminous coal is supplied annually to the Wabamun Generating Plant. A high water table, high groundwater pressure, and structural folds contribute to stability problems in the fine-grained overburden. Significant increases in coal recovery have been achieved in recent years through improvements in water management and mining methods. Agricultural capability of the post-mining landscape has also been improved following the completion of mining/ reclamation activities. Introduction The Whitewood Mine, located to the north of Lake Wabamun and seventy kilometres west of Edmonton, Alberta, is owned by TransAlta Utilities Corporation and operated by Manalta Coal Ltd. Figure 1 shows the location of the Whitewood Mine with respect to the city of Edmonton. The mine presently supplies two million tonnes annually of sub-bituminous ""C"" coal to the 582-megawatt Wabamun Generating Plant located adjacent to the mine. The area is characterized by a high water table-, rolling coal seams and an overburden that consists of muskeg, clay and various sedimentary layers of sand, gravel and fine-grained sandstone. These distinctive characteristics require careful attention in order to not only meet the coal delivery requirements of the Wabamun Generating Plant but also to do so economically. Historical Background A small-scale underground coal mine was opened in the Wabamun area in 1910 by the Conner Coal Mining Co. Ltd. Underground operations were continued by several operators until 1948 when the Alberta Coal Co. Ltd. opened a strip mine which was subsequently taken over by the Alberta Southern Coal Co. Ltd. in 1951. The small-scale strip opera"

Jan 1, 1985

By Gary L. Hundley

The Bureau of Mines has devised and demonstrated an ammoniacal sulfate leach process for recovering nickel and cobalt from low-grade domestic laterites. Solvent extraction of cobalt, one of the process steps, requires the reduction of hexammine complexes of C03+ to C02+ in an ammo-niacal leach solution. Previously, reduction was accomplished using cobalt metal shot in a column. This report presents experimental results and an economic evaluation comparing two alternate techniques with the shot column: (1) an electrolytic reduction cell with an extended surface area cathode and (2) direct electrowinning from purified leach solution using a cell with a fluid bed cathode. The second alternative eliminates the conventional solvent extraction-electrowinning steps. The costs of the three methods, based on the requirements of a pro-posed commercial-sized plant, including all unit operations, were deter-mined by the Bureau&apos;s process evaluation group. The operating costs for the shot column, $1.19/kg Co, and for electrolytic reduction, $1.20/kg, are essentially the same, but the cost of direct electrowinning, $3.77/ kg Co, would eliminate this method as a practical alternative. The cap-ital cost of approximately $14.4 million for reduction in a shot column is much higher than the approximately $4.4 million for electroreduction.

Jan 1, 1985

By Keith L. Harris

Economic activity in the United States picked up in the third quarter, according to the latest estimate released by the Department of Commerce. Real gross national product (GNP)--the Nation&apos;s output of goods and services--grew at a seasonally adjusted annual rate of 4.3%, or $17.6 billion, compared with a rate of 1.9% for the second quarter of 1985 and 1.6% for the third quarter of 1984 (table 1). The 4.3% rate is one percentage point above the preliminary estimate reported in the August/September issue of Minerals and Materials. Most of the upward revision was due to the change in business inventories and Government purchases, while the figure for net exports was revised downward substantially. The 4.3% growth bettered by 1.5% the average rate of growth in GNP from 1974 through 1984 and was 1.1 % above that of the period from 1975 through 1984 and 0.7% above that of 1980 through 1984. Of importance to the minerals industry was the $14.4-billion growth in personal consumption expenditures, $10.2 billion of which was for durable goods (especially domestically produced automobiles) and the growing residential investment. The net export deficit continued to grow, however, and investment in nonresidential structures, producers&apos; durable equipment, and business inventories declined. Prices, as measured by the GNP fixed-weighted price index, increased at an annual rate of 3.1% in the third quarter, compared with 3.9% in the second quarter. The slower rate of inflation resulted mainly from a decline in energy prices, following second-quarter increases. Fourth-Quarter Prognosis Many of the economic data available for October and November indicate that the economy is growing modestly and will continue to grow over the next 3 to 6 months. The composite index of leading indicators, designed to predict economic activity within 3 to 6 months, rose 0.3% in October, the sixth consecutive monthly advance, according to the Department of Commerce. Six of the 11 available leading indicators were positive: Stock market prices rose, as did sensitive material prices, credit outstanding, and manufacturers&apos; new orders for consumer goods and materials; initial claims for unemployment insurance decreased, and firms were getting slower delivery of goods. Four of the indicators were negative: Business formations, homebuilding permits, contracts and orders for plant and equipment, and money supply all declined. The average hours worked per week, already at a high level, remained unchanged.

Jan 1, 1985

By Dan Nilsson

Rock from underground mining has a size-distribution, that varies from mine to mine, depends on rock conditions and mining method and on how much explosives etc, that is used. Because at the high costs, associated with full-scale studies of the size-distribution of blasted rock in a mine, detailed information is seldom published about such size-distributions. However, some facts can be noticed. Rock from tunnelling and other types of development work has a fine fragmentation. Cut-and- fill mining is a method that normally results in blasted rock with an advantageous size distribution. Block caving on the other hand often results in large amounts of boulders, since blasting of the rock is normally not used.

Jan 1, 1985

By James L. Poole

INTRODUCTION Companies in the mining industry are subjected at times to currency exchange rate risks and interest rate risks. The former occurs any time a firm deals in more than one currency. The latter occurs anytime a firm is financing itself with borrowings that have a floating interest rate (although a fixed rate can be a problem at times). FOREIGN EXCHANGE RISKS There are two general reasons why exchange rate risks (FX risk) can occur: First, a firm may be building a mine or plant in another country where financing for the plan is denominated in funds other than the country hosting the plant. For example, if a Canadian firm is building a smelter in another country which is being financed with Canadian dollars, the C$100 million for labor, which must be paid in the local currency, has subjected the firm to a C$100 million FX exposure risk. If after the cost estimates were made the local currency appreciates 30% against the Canadian dollar, the cost of labor has increased to C$130 million. (Of course, the local currency could also devalue during this period making the labor cost component less than estimated.) The other reason exchange rate risk arises is due to the fact that the costs of production in one country producing minerals may be incurred in one currency while the production is sold in another currency, such as coal being exported from Canada to Japan under contracts denominated in Yen. In this example, the Canadian firm is exporting coal to Japan and being paid in yen in 30 days at a contract price of 100 Y per ton. Furthermore, assume that the mining firm anticipates a depreciation of the yen against the Canadian dollar of 5% in the next 30 days. Therefore, the mining firm stands to lose 5% of the value of its shipment in a month&apos;s time not including carrying costs. In both cases, the mining company risks an adverse change in the exchange rate, that is, the currency the company holds may decrease in value relative to the other currency. There are a number of ways to mitigate the exposure to foreign exchange which can be utilized by the mining company. Optimally, a company should try to match all their inflows and all their outflows in the same currency. For example, if a Canadian firm has mining costs and debt service costs both denominated in Canadian dollars then 100% of their receipts would need to be in Canadian dollars. If a Canadian firm has 70% of its cash outflows in Canadian dollars and 30% of its cash outflow in American dollars in the form of a loan amortization then their receipts would need to be 70% in Canadian dollars and 30% in U.S. dollars. This general principle of matching cash receipts and cash costs in the same currency works fine in a perfect world but what of the real world when these cannot be matched? In actual practice, however, the financial markets have developed a number of ways in which foreign exchange risks can he managed or reduced. FORWARD MARKETS One method is to use the forward markets which are made on a world-wide basis by the commerical banks for foreign exchange. If a firm wanted to lock in the current exchange rate for the receipt of a foreign currency at some point in the future, they could do so by contracting on the forward market with a bank selling that foreign currency at the current rate at the future date. For example, assume that a Canadian firm is exporting coal to Japan which would pay yen in 90 days. If a firm wanted to lock in today&apos;s exchange rate they could contract with a bank to sell on the forward market yen in 90 days. When the yen was received the contract would be executed by selling the yen to the bank and receiving the previously agreed upon number of Canadian dollars. Generally speaking, the forward market can be used to sell forward about 12 months. The costs of selling (or buying) forward

Jan 1, 1985

By David E. Pearson

"There are many tests that can be used to characterize and classify coals, and describe their quality. One of the easier tests, and most versatile in its application, is petrography. Rank and coal type are precisely defined by petrographic evaluation, and in this paper they are compared with other definitions of rank and coal type. Brief descriptions are given of the various rank tests, and of rheological and coking tests used to describe coking-coal quality in Canada. Similarly, tests used to evaluate thermal coal quality are discussed. Finally, the use of these tests as parameters to classify Canadian coals is examined with reference to four coal classifications.Introduction Among all coals there are two independent variables that are required to evaluate coal quality. These are, coal rank and coal type (or composition), and although coal petrography can be used to precisely define them, other methods are often used to provide values that are, in fact, functions of rank and coal type. For example, volatile matter yield is used as a proxy for rank, and free swelling index is used as a proxy for coal type in the International Classification of Hard Coals by type. Currently, there are a number of methods in use in Canada to define rank. The approach taken here, (obviously the author's bias), is that Romax, the mean maximum reflectance of vitrinite, is both a quick and an accurate measure of rank. It is logical to compare the other techniques employed in the measurement of rank to this favoured method. Coal type is, in theory at least, simply a quantitative measure of the various varieties of coal. In practice, the microscopic entities are assigned to a Reactive or Inert category, and at that point objectivity fades from petrography. Despite this somewhat subjective approach, petrographic composition of coals remains an independent variable of such.importance that its place in the evaluation of coal is essential. In this paper, a variety of me.thods that are used to assess rank and coal type are reviewed and compared; the influence of these variables over other parameters that are used to determine the quality of metallurgical and thermal coals is examined, and their usefulness in coal classifications is discussed."

Jan 1, 1985

By William A. Vogely, Robert T. Deacon, Walter J. Mead

Oil and gas together are the most important energy sources consumed in the United States. In 1983, 67% of total energy consumption was represented by these two resources (43% was oil and 25% natural gas), while coal accounted for only 23% of U.S. energy use. All other sources (hydroelectric, nuclear, geothermal, wood and other waste products) accounted for only 10% (U.S. Department of Energy, 1983, p. 1). In this chapter we address the issue of regulation in the oil and natural gas sectors of the U.S. energy industry. In addition, we analyze the cartel characteristics of the Organization of Petroleum Exporting Countries (OPEC). If OPEC is an effective cartel, then U.S. oil as well as substitute energy prices, production, and consumption will be affected by cartel action. Further, as the nation learned in the 1970s, major changes in oil prices produced major disturbances in other sectors of the U.S. and world economies. Consequently, it is important to determine whether the roughly ten-fold increase in nominal prices that occurred in the 1970s was the result of cartel action, the result of normal economic forces adjusting to the fact that the world was running out of cheap oil, or some combination of the two. Furthermore, the presence of OPEC- associated oil price increases is related to regulations that were imposed on the energy sector during the decade of the 70s. THE RATIONALE FOR GOVERNMENT INTERVENTION Economists have traditionally judged the state of an economy to be efficient if it is impossible to improve the welfare of any one member of society without harming someone else. Any economy that satisfies this condition is said to be Pareto efficient, after the Italian economist Vilfredo Pareto who first gave rigorous attention to such questions (see Chapter 4.10). It is easy to see why an economy that fails to satisfy this condition could not be efficient; by definition, it would be possible to alter the allocation of resources in a way that improves everyone&apos;s welfare.&apos; Much of the appeal of this weak efficiency criterion is that it avoids comparisons of levels of well being among different individuals. The cost of such generality, however, is that in any given economic system a wide array of different Pareto efficient states will typically be attainable. In the simple Robinson Cursoe economy of the undergraduate textbook, for example, efficiency could just as easily be attained in the case where most of the island&apos;s resources are owned by Friday as in the case where they are under Crusoe&apos;s control. However, the distribution of welfare among the two inhabitants would obviously be quite different in the two situations. Such equity issues cannot be settled on objective or scientific grounds. To decide which distribution of welfare is socially "best" an explicit value judgment is needed. It is useful to keep in mind the preceding distinction between efficiency and equity issues when analyzing the role of government in a market economy. Decentralized market processes will not necessarily result in a distribution of welfare that society considers just. For this reason a potential role for government lies in the redistribution of income among individuals. In some circumstances, however, market pro-

Jan 1, 1985

By H. Boyd

Fluid energy grinding, or jet pulverization, refers to the process of entraining solid particles in high velocity gaseous or vaporous streams and reducing their size by impact and attrition against other particles or some sort of target. Since all desired size reduction is not achieved in one pass through the zone where energy is applied, some form of classification is necessary to return oversize particles to the grinding zone for further size reduction. Applications Fluid energy mills have normally been used to produce products where the particle size is basically finer than 325 mesh. Products having particle size distributions with a maximum size of 4 or 5 µm, and with a high percentage finer than I µm, can be produced using fluid energy mills. More recently, some fluid energy grinding units have been applied economically to produce ground products with 1 or 2% coarser than 200 mesh. It is also possible to consider usage of a jet-pulverizing zone, without the usual integrated air classi¬fier, operated either in open circuit or in conjunction with a screen. Feed sizes to be delivered to the fluid energy mill depend on the material involved, the type of jet pulverizer used, the finished product size requirement, and the upstream process. In some units feed sizes up to l in. or larger can be accepted, but practical economics usually require the starting material to be -4 mesh or smaller and some pulverizers are typically fed at 20 mesh top size. It is not unusual to find feed materials at essentially -325 mesh when extremely fine products are needed, since capacities are improved with finer feeds. Conventionally the fluid energy grinding process has been used for relatively soft and nonabrasive materials. This includes very low¬melting-point and temperature-sensitive materials or coatings, since there is no measurable temperature rise during fluid energy milling. More recently, however, jet pulverizers are being used on highly abra¬sive materials such as silica, feldspar, glass, zircon, calcined alumina, coke, boron carbide, and similar materials. Since the primary energy application is by impact of particles against themselves, there is a low rate of wear resulting in a small amount of product contamination and in low maintenance costs. Usually the fluid energy pulverizer produces a more narrow particle size distribution than other mills provide, and this is useful where such a requirement exists. It is possible, within limits, to adjust classifi¬cation and other functions of the overall fluid energy system to vary the particle size distribution curve and thereby approach the broader distribution obtained from other grinding methods. By controlling the temperature, composition, and humidity of the fluid used, it is possible to incorporate other functions with the size-reduction process. These include drying or adding moisture, coating, mixing and blend¬ing, and even oxidation or reduction and other chemical reactions or their inhibition. The finished product is discharged in the fluid stream and is conveyed pneumatically to the desired point, where a suitable dust collector must be provided. Operation and Mechanical Features One of the earliest fluid energy mills is the Micronizer now manu¬factured by the Sturtevant Mill Co. Similar units are also manufac¬tured by Jet Pulverizer Co. and others. As shown in Fig. 81, the micronizer consists of a shallow circular grinding chamber with noz¬zles arranged at the outer periphery to discharge tangentially inward. Fluid (usually compressed air or superheated steam) is provided to the nozzles from a manifold at pressures normally in the range of 100-150 psig and at temperatures up to 800°F or higher, depending on the raw material, required results, and economic factors. The com¬pressible fluid expands to high velocity through the nozzles and gener¬ates a spiral flow pattern in the grinding chamber, and discharges

Jan 1, 1985

By J. A. Herbst, H. R. Cooper, R. J. Brison, R. W. Harper, K. P. Ananthapadmanabhan, W. C. Hellyer, B. H. Bergstorm, D. M. Hopstock, H. Rush Spedden, W. C. Hellyner

Scope of Section The physical characterization of an ore or mineral mixture in such detail that mineral processing may be effectively applied to create more useful products is one part of the technology of sampling and testing. In addition, the evaluation of the multitude of separation processes, both physical and chemical, combined with ancillary opera¬tions and performed on samples at a laboratory scale, is another part of the testing procedure. Although analytical techniques provid¬ing quantitative determinations of elemental compositions are an im¬portant and necessary supplement to any testing program, that field of endeavor is a well-developed, separate entity beyond the scope of this Section. Sampling procedures cover the practice of selecting representative quantities of test materials in the field to evaluate mineral deposits, and extend to techniques of obtaining process samples in slurry and bulk ore as part of process evaluation. The same techniques are appli¬cable, of course, to standardized methods of metallurgical accounting. Sampling is also an important facet of successful on-line measurement of slurry properties such as assays and particle size in the practice of automation. However, the sampling methods in this case can be different from those needed for precise testing and accounting pur¬poses. Sampling was well defined in Taggart&apos;s Handbook as "the opera¬tion of removing a part convenient in size for testing, from a whole which is of much greater bulk, in such a way that the proportion and distribution of the quality to be tested (e.g., specific gravity, metal content, recoverability) are the same in both the whole and the part removed (SAMPLE). The conditions of the more stringent definition, that the sample shall be completely representative of the whole as regards all aspects save bulk, are practically never fulfilled when heterogenous mineral mixtures are sampled." Taggart&apos;s Handbook of Mineral Dressing, Section 19, "Sampling and Testing," continues to be a very useful compendium of principles and techniques, particularly as applied to manual methods for han¬dling samples. In the intervening years since its last revision, substan¬tial progress has been made in both the theory and the techniques; thus, this current contribution is designed to be an extension of the earlier work, yet complete enough to provide procedural guidelines to methods of continuing validity. Although basic principles of testing remain unchanged, the meth¬ods of applying those principles have undergone great change. New testing equipment has become available, yielding a greater precision of results. Testing methods have been refined which, in many cases, allows for a valid scale up of flowsheet designs without the necessity of costly pilot or prototype plant development. Justification for a Sampling and Testing Program* The proper evaluation of a mineral property is a complicated process. It often is done on a team basis with the exploration geologist, mining engineer, mineral process engineer (extractive metallurgist), economist, and product utilizer (ceramist, chemical engineer, chemist, metallurgist, etc.) all represented. The mineral processing engineer is a key member because he can provide a go no-go answer to the question, "Can this ore be processed economically?" In addition, his judgment on the response of even the initial sample to processing can be an invaluable guide to the proposed process and its mutations. Since the capital investment and operating costs are so sensitive to the type of process used, the judgment of the mineral processing engineer forms an important part of the early evaluation of the profitability of a new mining venture. This early estimation of the processing approach is all the more important since, for some metalliferous ores, the capital investment for mill, smelter, water supply, and tailings disposal exceeds the cost of the mine. At present, for commodities such as coal, the reverse is true. There is a smaller capital investment for the coal preparation plant than for the mine. In general, both the capital and operating costs escalate very rapidly in the following order: gravity concentration of alluvial deposits (e.g., dredging), gravity concentration of lode ores, flotation, simple hydrometallurgical processes, and complicated hydrometallurgical and pyrometallurgical processes. The latter two processes may cost 100 to 1,000 times more per ton treated than processing of a simple alluvial deposit. This dictates that the valuable mineral be concentrated as much as possible to minimize the total tonnage treated in the more expensive operations. Within each of these ore-processing categories there is a wide range of process sophistication and hence of capital and operating costs. Perhaps the greatest variations are in the chemical processing of ores. These range from the simple leaching of a copper waste dump to very sophisticated hydrometallurgical processing of ores in increasing order of cost. Because the overall cost of a mining venture is so sensitive to the process selected, it is essential that the mineral¬ processing engineer evaluate the ore in the initial stages of the development of an ore body. As better samples become available, he must continually revise his estimate of the process to be employed. The sampling and testing process must be a necessary and continuing activity throughout the life of a project. One fundamental aspect of nearly all mineral deposits is the inherent variability of the mineral assemblage and composition. A utopian goal of any processing plant is to have the process so flexible and so well-defined that an automatic process control system can optimize the economic recovery at all times. Since this is rarely possible, a continuing or at least a periodic testing program is desirable. Variables to be considered are: 1) Ore body inconsistencies. 2) Zonal variations. 3) Feed variations from mining plan or methods. 4) Variable performance of processing units due to wear. 5) Seasonal or other changes affecting processing conditions such as water quality, temperature, etc. 6) Changing market conditions for product quality or byproducts. 7) Technological advances in processing methods or equipment. 8) Increasing demands for environmental control. 9) Changing economics of competitive processes, of supplies, of capital investment vs. labor costs, etc. Sampling Procedures Preliminary Guidelines for Sampling Ore Deposit Studies. t At a very early stage, it is essential that the mineral processing engineer receive a sample of the ore. This may be a portion of the diamond drill core or a split from the trench, pit, churn drill, channel, or sheet sample. Even a grab sample may have some value, but it should be selected by the mining engineer or exploration geologist to be as representative of the ore body as possible within his best judgment. The sample delivered to the process engineer should have been subjected to as little prior crushing as is practical since fine sizes are difficult to concentrate. In addition, finely ground ores are readily oxidized and thus may give misleading test results. Furthermore, ground samples may make it impossible to eval¬uate either the comminution or the coarse-gravity concentration pro¬cesses. For an initial evaluation, a good deal may often be learned from a sample of only a few pounds if that is all that is available. To obtain the maximum information from a sample, its selection should be carefully discussed with the mineral processing engineer. In addi¬tion to being as representative as possible, the mineralogically distinct samples should be carefully segregated rather than composited. Since drastically different processes are often needed to process samples of differing mineralogy, considerable care and time must be exercised during this sample collection step. The segregation of samples showing gross mineralogical differences, such as the oxide caping on a sulfide deposit or a laterized zone, is easy. It is the more subtle changes in mineralogy that can often elude the field man. Yet these differences are often sufficient to dictate that an entirely different type of process be used. Obviously, the selection of these initial samples for ore testing and mineralogical studies requires that it be done by a man of consider¬able experience and judgment. While the mining engineer or field geologist is collecting these samples, he should also note and convey to the processing engineer such details as water quality and availabil¬ity, terrain, potential mill location, tailings-disposal areas, case of transportation, etc. As the property is developed with additional drill holes, adits, etc., larger and more representative samples will be required to develop the ore-processing flowsheet more adequately. If pilot-plant studies are required, a very large sample may be necessary. Though the type and amount of sample collected for flowsheet development investigations vary widely, gathering a representative sample of the ore body is a prime requisite for any process development effort. The process developed for any given ore body is only as reliable as the sample on which the flowsheet was based¬

Jan 1, 1985

By D. G. Collins

As part of its effort to develop ways to maximize resource recovery, the Bureau of Mines investigated the extraction of vanadium from Western phosphate beneficiation tailings with H2S04 and/or H3P04. Dissolution of the vanadium was accomplished by digesting a mixture of acid and a 50-pet-solids, tailings-water slurry. In the most effective method investigated, vanadium and phosphorus were leached by digesting the slurry at a constant boiling temperature (1000-1100 C) in a stirred reactor. In batch tests, maximum vanadium dissolution was 95 pet. In continuous-circuit tests designed to further evaluate vanadium dissolution at con-stant boiling temperature in a continuously stirred reactor, vanadium dissolution ranged from 70 to 85 pet. An economic evaluation of the process demonstrated that H2S04 consumption is the major cost factor. Based on the value of the vanadium product with no allowance for a phos-phate product, the cost of producing the V205 is more than twice its value. The potential for profit would depend upon the value of the phosphate fertilizer produced from the impure H3P04 remaining after vanadium extraction.

Jan 1, 1985

By J. A. Meech, R. J. Tucker

"A dynamic computer model has been developed to simulate the operation of ore crushing plants. The model was created in a general form to allow imitation of a wide variety of secondary crushing circuits with only minor program modifications. The system can be run on either a microcomputer or a large time-sharing main frame computer as required.The size reduction and separation characteristics of crushers and screens are based on standard manufacturers' design and performance data. These calculations are isolated within various subroutines to facilitate tailoring of the model to emulate any particular plant of interest. Input and output data are presented in a variety of formats. Crusher, screen and conveyor amperages and surge bin levels can be presented in a tabular form along with appropriate alarms arising from improper circuit operation or process interruptions. Graphical representation of the circuit together with strip chart data output are features of the system when operated in a microcomputer environment.The program is currently being used at Queen's University as a teaching aid to demonstrate plant operating characteristics, control strategies and design concepts. The acceptance of, and reaction to the program at this level indicates a good potential for it to provide a valuable tool for operator training."

Jan 1, 1985

By F. J. Palumbo

Effective recycling or disposal of flue dusts is a continuing problem for copper, brass, and bronze smelters. Over 300,000 short tons (st) of dust is generated annually by U.S. secondary copper, brass, and bronze smelters. The Bureau of Mines has developed an alkaline leach method for recovering metal values from copper converter flue dust containing zinc, tin, lead, and copper. The dust was leached with a hot solution of ammonium chloride and ammonium hydroxide to solubilize ZnO. All of the tin (as Sn02) and the metallic copper, lead, and zinc, as well as possible insoluble compounds of each, report to the residue. Dissolved copper and lead salts are removed from the leachate by cementation with granular zinc. Zinc oxide is precipitated by diluting the leachate with water. The tin-rich (9.8 pct) residue has a ready market. The cement product is recyclable to the smelting operation. The ZnO is at least 97 pct pure and has potential marketability.

Jan 1, 1985

By Richard L. Gordon, William A. Vogely

ENERGY POI.ICY-PRINCIPLES AND THEIR PRACTICE Persistently, at least since the end of World War 11, governments have intervened broadly, deeply, and incoherently in major energy markets. If we take a broad definition of energy that encompasses gas distribution and electric power, we can observe regulations of even older vintage. This trend, of course, is not unique to energy. Expansion of government controls has occurred in many areas. The relevant basic question about energy regulation, therefore, is not why is energy special, but whether any general principles exist to explain the wisdom of existing regulations. This review takes place at a time, the middle 1980s, in which a massive onslaught is being undertaken against government regulation. However, the present chapter is influenced primarily by my observations of the failures of energy regulations and not by any inspiration from those ideologically opposed to government intervention. Several subquestions arise in policy appraisal. A primary need is to establish clear objectives and determine the consistency between these goals and the policies imposed. Thus, the first step is to set objectives. The next is to outline ways to attain these goals. However, it should be recognized that many apparently distinct options are economically equivalent. When the goal is to charge producers or consumers for something, it is possible to attain the same result through either government ownership or taxing private transactions. The tax can raise the price to the level the government would have charged if it were the owner. Creation of a Department of Energy is not necessarily any different from having separate energy agencies well coordinated by some small supervisory body. Thus, a distinction should be made between substance and form in policymaking. The critical substance concerns such matters as whether the government imposes financial penalties, incentives, or rules to attain a goal. Then, there can be many equivalent ways to implement the basic policy form. The second prior illustration suggests that one favorite question is how to attain proper integration of policy. At various times, voices on either (or even both) sides of the Atlantic have called for a coordinated energy policy. The U.S. Paley Commission made this a primary goal for future policy. The western European governments that were the founding members of the Coal and Steel, Economic, and Atomic Energy Communities spent much time in the middle fifties and much of the sixties trying futilely to agree on an energy policy. (See Gordon, 1970 for an annotated review). The energy price rises of the 1970s rekindled United States interest in coordination. However, astute observers of the problem such as O. C. Herfindahl of the United States and Maurice Allais (1 962) in France warned the discussions confused form with substance. The crucial issues were what were the goals and what were the best types of policies to attain such goals. Policy suffered, not from poor organization, but from discord about the goals and how to attain them. All this suggests that we need principles to guide policy appraisal. The branch of economic theory known as welfare economics concentrates on providing guidance about the problems of policymaking. The theory examines both what

Jan 1, 1985

By C. A. Rowland

Introduction Rod mills are horizontal, cylindrical, rotating, tumbling mills in which steel rods, that are usually about 6 in. shorter than the length of the grinding chamber, are used for grinding media. Fig. 33 shows a cutaway view of a rod mill. Rod mills were first used around 1910 because of their ability to grind in open circuit, consistently produce a uniformly sized prod¬uct, give greater continuous availability, and give lower maintenance costs. They have basically replaced roll crushers and coarse grinding ball mills in comminution flowsheets. The present 20-ft limit on rod length, based on rod manufacturing methods, and the pulp flow char¬acteristics, that influence mill capacity, have established the maximum rod mill sizes&apos; of 15 x 21 Vs ft using 20-ft rods and drawing from 2,200 to 2,300 hp. Rod Mill Uses. The principal uses for rod mills are: preparing feed for ball or pebble mills, grinding gravel or aggregates to the size analysis required for making concrete sand, preparing coarse agitator feed for leaching operations, and for primary grinding circuits, particularly in industrial mineral applications. Wet grinding is the most frequently used grinding process for rod milling. There are a few special cases where dry rod milling is used. Preparing feed for ball or pebble mills is the most common use for rod mills. In ferrous and nonferrous ore concentrators, wet open-circuit grinding is used to prepare ball-mill feed. Figs. 34 thru 37 show the four basic grinding circuits used in these concentrators. In rod mill-ball mill grinding circuits, where the rod-mill discharge contains 25% or more of the grinding circuit product-size material, the rod-mill discharge can be fed to the ball- or pebble-mill classifier as shown in Fig. 34. This is the most frequently used rod mill-ball mill circuit in the nonferrous ore concentrators. In a few concentrators such as Anaconda&apos;s Weed concentrator,55 the rod mill discharges to one classification stage which makes the same or a slightly coarser particle-size cut as the classifiers used to close the ball- or pebble¬mill circuits, as shown in Fig. 35. In concentrators where rod mill-ball mill circuits are used to grind low grade magnetic iron ores such as Reserve Mining Co., Silver Bay, Minn.; Erie Mining Co., Hoyt Lakes, Minn.; Eveleth Taconite Co., Forbes, Minn.; US Steel, Mt. Iron, Minn. and Atlantic City, Wyo.; Inland Steel-Jackson County Iron Co., Black River Falls, Wis.; and The Cleveland-Cliffs Iron Co., Adams mine, Kirkland Lake, Ont., the rod mills discharge to rougher magnetic separators (cobbers), the concentrates from which are fed to a ball milling stage as shown in Fig. 36. The same basic circuit is also used with gravity concentra¬tion methods such as spirals (Hanna Mining Co., Groveland, Mich.), tables (St. Joe Minerals, Bonne Terre, Mo.), and jigs. When the rod-mill discharge contains less than 25% of the grind¬ing circuit product size, this indicates an ore that does not readily produce the fines needed to help carry the coarse feed into the ball charge. When this occurs, the fines in the rod-mill discharge are needed in the ball mill or pebble mill so the rod-mill discharge flows direct to the second-stage mills as shown in Fig. 37. Rod mills are used to make feed for open-circuit ball mills such as those used in wet grinding cement raw material (American Cement, Brennan Ave¬nue plant, Detroit, Mich., and Port Huron, Mich., plant, and at the South Dakota State Cement plant, Rapid City, S. Dak.). Grinding gravel or aggregates to the size analysis required for making concrete sand is used in areas where natural sand of the proper particle size gradation required to make concrete is not availa¬ble. Three-quarter inch crushed aggregate is ground to 4 mesh using center peripheral-discharge rod mills (Fig. 38) operating in open circuit. US Corps of Engineers specifications state that the sand product be 93-100% passing 4 mesh and contain no more than 3-7% passing 200 mesh. It may be necessary to classify the rod-mill discharge to remove any excess -200 mesh sand produced in the rod mill. Particu¬larly when processing aggregate with high abrasion indices, center peripheral-discharge rod mills are used instead of hammer mills, fine bowl crushers, and crushing rolls for the production of specification sand. If the -4 mesh size fraction of the rod-mill feed is removed

Jan 1, 1985

By E. Kendall Cork

The traditional financial objective for a single mine company has been to operate as frugally as possible and to pay out most of the earnings as dividends. If the business is cyclical (as it is for most metals) the dividends might fluctuate quite widely. When the mine is exhausted the company disappears. This is still quite a viable strategy for a single mine company. It is not however a viable strategy for the world as a whole. The mining industry is built by mine development companies who can mobilize the people and capital to bring new mines into production. Their skills must include marketing, engineering, finance and other politics. It is very rare for a property to be brought in without the support of a major company that can provide all these services. The exceptions will usually have some other form of big brother support, for example the U.S. government uranium contracts at guaranteed generous prices. The mine development company will seek as a minimum to perpetuate itself by developing new mines in order to replace those which are running out. The more common and more ambitious objective is to grow -- that is to add to its ore reserves and current production by developing more new mines. The financial objectives for that company are very different. Obviously if all the earnings were paid out in dividends there would be nothing left to work with. The first financial policy then is to spend an appropriate amount on exploration for new properties. The next is to retain enough of the earnings to provide the capital for new projects at least sufficient for the equity. There is no magic formula as to what proportion of earnings should properly be distributed as dividends by a growth-oriented mine development company. As a rough rule of thumb distributing half or more will probably leave too little to work on and 30% or so is probably a good balance. However the circumstances differ widely from company to company. It may be useful to set an objective for the rate of growth of a company&apos;s earnings. Some have picked rates such as 15% per annum compounded. Others have set a target in real terms which might appear as 10 or 11% plus inflation. Obviously the arithmetic of compound interest is very attractive; however in practice there is much variation. Indeed current returns from existing operations swing widely with the business cycle and there is no assurance that economic new properties will be found according to someone&apos;s arbitrary time schedule. For example, Western Mining Corporation Limited in Australia explored for 30 years with little to show for it, but then found the great Australian nickel deposits and more recently the huge Roxby Downs copper. That long dry spell could not have fitted anyone&apos;s arbitrary calendar of growth and yet they would not have found such orebodies without that long period of effort. Should they have abandoned the search? Once a new property has been found or acquired there has to be a threshold rate of return on the new capital to be invested against which to evaluate the property&apos;s economics. Conventionally this seems to be 15% after tax, a number common in other heavy industries as well. In some cases it is expressed as a lower number plus allowance for inflation. Discounted cash flow analysis is a very useful tool but it does not make the decision. In the end a "go" decision depends on judgment of many factors some of which are numbers used in the DCF calculation whose credibility must be examined. It is curious how frequently investment proposals come in with the rates of return very close to 15%. The project advocates know that a number much less than 15% will not fly and that a number much more is not necessary. With much higher nominal and real interest rates of recent years, even though before tax, logic suggests that the hurdle rate should also rise. The power of compound interest is so great that 20% is very hard to achieve in any cash flow projection but 18% may be a sensible yard - stick. Once again it is remarkable how many project proposals come in with an 18% return. On the record the mining industry as a whole has not been overly restrictive in choosing its hurdle rates of return. This is shown by the abundance of metals in recent years and the failure of metal prices to keep up with inflation. All of the foregoing is standard text book stuff.

Jan 1, 1985