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By Peter B. Lilly

Thank you, Tom, I appreciate that generous introduction - and your generous welcome. When Doris Finnie asked me to speak here today, my decision to join you couldn't have been easier - for two reasons. First, I can't say no to an opportunity to return to Steamboat Springs. My family has wonderful memories of skiing here. And this time of year, golf in the mountains is so good you almost don't miss the skiing. The second reason this was such an easy decision is that The Rocky Mountain Coal Mining Institute is such an important forum for the coal industry, and it's certainly important to Peabody. We have mines in five western states - Arizona, Colorado, Montana, New Mexico and Wyoming. Last year, our western mines produced more than 110 million tons of coal. That's about two-thirds of our total domestic production. So western states are obviously critical to us. A couple of weeks ago, the west became even more significant to Peabody. Of course, I'm speaking of PacifiCorp's planned acquisition of The Energy Group - including Peabody - announced the middle of this month. Admittedly, when I agreed to speak here - some months ago - I had no idea just how much change Peabody would face in this relatively brief period. Still, not knowing then about the PacifiCorp announcement, I chose change as the subject for this talk. I'll update you on our recent news. But, first I want to establish a broad context for the PacifiCorp/Energy Group announcement and other change in the electricity business, change here in the United States and all over the world. ? We'll see how change is driven by two major trends - privatization in emerging markets and deregulation in mature markets, In turn, those two trends will cause ever-increasing consolidation - in both the coal industry and the broader power industry. ? After outlining those trends, I'll discuss the change that will dramatically affect Peabody following the announcement a week ago that PacifiCorp and The Energy Group intend to join forces to create one of the world's largest international integrated energy companies - an event that adds considerable credibility to the prophesies I'll outline in my remarks today. ? Finally, I will discuss an issue that threatens our industry's future - and, indeed, the economic future of all Americans. That issue is the inappropriate response to the unproven possibility of global climate change. Let's set the stage for change. And let's begin with the first trend I mentioned - the trend to privatization in developing economies. What drives the trend to privatization? Economics. It's all about the supply and demand of capital. And the engine that drives the supply/demand ratio is growth in electricity demand - tremendous growth in demand in developing economies. The U.S. EIA projects worldwide growth in electricity demand at 63 percent between 1990 and 2010, most of it in developing countries. This strong growth means that a new 500 MW power plant will be needed every three and one-half days until the year 2010. Now, if we say that a 500 MW plant will cost about $500 million dollars, we're talking about a bill of about $1 billion dollars a week - through 2010. That voracious demand for capital drives the trend to privatization. It means countries in Eastern Europe and the former Soviet Union want to sell generating assets. And Asian countries - for example, India, Indonesia and the Philippines - want to find private investors to build power plants. Privatization already is well underway. In the future, it will grow, with countries in South America, Central America, and Africa joining the trend. Bottom line: The privatization trend means rich new opportunities for companies willing to think beyond "business as usual." Meanwhile, developed economies face a different but no less fundamental change. Western European countries, the United States and Australia face deregulation. Why does deregulation represent such a big change? Consider a few basic facts about the U.S. electricity market to see what a big change -

Jan 1, 1997

By Philip L. LeHoux

"Kennecott Barneys Canyon Mining Co. is a gold heap leaching facility that has been in operation since 1989. In 1994, a flotation plant was commissioned to remove sulphide minerals from refractory sulphide ore. Tailings from the plant are mixed with oxide heap leach material in order to produce a geotechnically stable agglomerate from which the gold is leached and recovered in a conventional heap leach cyanidation process. The experience to arrive at an effective blending methodology is discussed.IntroductionAgglomeration is the practice of binding fine particles to coarser rock or other fines in order to avoid the deleterious effects of mobilizing the fines during the course of heap leaching(l-Chamberlin). Agglomeration has been considered a key component of successful operation at many heap leach sites. If the ore is of sedimentary origin and crushed, there is a high likelihood that the resulting product will contain a significant quantity of fines and a skewed gradation, that i~, a disproportionate amount of coarse and fine particles, with few in the intermediate size range. The exact methodology for determining whether the practice of agglomeration will have to be integrated into the operating scheme has been well discussed. These conditions are primarily geotechnical and geochemical. This paper will deal with the specific experiences of Kennecott Barneys Canyon Mining Company in modifying the agglomeration practices to suit evolving operational requirements."

Jan 1, 1997

Currently, mining in Australia underpins the economic vitality of the nation, generating massive revenue from commodity exports and providing substantial infrastructure and employment. In addition, it is predicted that mining related services will in the future develop a global market of their own that could eventually grow to rival, in value, the export trade in mineral commodities. There is however little room for complacency. In the short- to medium-term, escalating, vigorous competition can be expected from many previously underdeveloped countries that are reforming their own mining and mineral export industries. In addition, most mining companies are facing a modem-day renaissance in terms of new expectations, changing social norms, evolving employee relations and statutory obligations. Thus, along with whatever promise the future might hold, the mining industry is currently being subjected to a growing number of largely unprecedented problems and pressures, both economic and social, that are both highly complex and demanding. In particular, it remains a matter of on-going concern that relations between mining companies and their employees still, in spite of recent reforms, continue to constrain productivity, perpetuate inefficiencies, affect quality of work life and retard progress towards mutually beneficial goals and achievements. If mining in Australia is to attain and hold on to a commanding position on the global scene, then further changes will clearly need to be made. Realisation of this appears to be growing, with most mining companies having attempted in recent years to improve workplace culture. Based on a wide ranging study, this paper presents an overview of what has been learned to-date with regard to the `people factor' when it comes to implementing and progressing positive change and reform in mining. From this, a number of practical suggestions, arising from hard won lessons and experiences in the field, are offered. Attention to the nine `key principles' given should help to ensure that many of the common problems encountered to-date with change and reform in the mining industry are in future avoided or at least minimised.

Jan 1, 1997

By Leonard Harris, Rosa H. Harris

"It is becoming increasingly obvious to mining and exploration companies, when operating overseas, that their activities should not conflict with the interests of the surrounding communities. The world's largest gold heap leach operation, Minera Yanacocha has installed community assistance programs in Peru concerned with health, education, electrification, agricultural assistance and road improvements. The programs are conducted with joint venture partners consisting of the company, the community people, the contractors and suppliers, government and non government organizations and a ladies association composed of the employees' wives and female staff.IntroductionThe l 990's is the decade highlighted by enormous investments in mineral exploration and mining projects in the developing world. Figure 1 illustrates the distribution of exploration spending by mining companies in 1995."

Jan 1, 1997

By B. Q. Li, S. P. Song

"Numerical models are developed to represent complex electromagnetic, free surface deformation and fluid flow phenomena in floating zone refining processes with radio frequency inductive heating. The computational methodology is based on the coupled finite/boundary element method for the electromagnetic field distribution and the Galerkin finite element method for magnetically driven fluid flow and free surface profiles of the molten zone. With the models, the complex transport and free surface phenomena in a floating zone system can be studied as a function of various operating conditions including applied current, frequency, inductor position and shape, surface tension, floating zone diameter and height. Results show that the equilibrium shape is sensitive to the height of the molten zone and that the free surface shapes can have a significant effect on the melt flow in the molten zone. Our extensive simulations also suggest that to ensure accurate results, the same mesh should be used, whenever possible, for both the electromagnetic forces and fluid flow calculations.1. IntroductionThe floating zone processes have been widely used in the materials industry to grow ultra-pure rare earth metal or semiconductor single crystals for sensor or electronic applications that have a tough demand on purity. Developed based on the principle of magnetic melting/levitation, the processes possess a main advantage that the molten zone is supported in air by the electromagnetic forces generated by the coil (see Figure 1), and therefore is free from contamination from a container. Consequently, the final products made from the floating zone processes have higher inherent purity than those by other techniques [1-4].Complex physical phenomena occur in the floating zone processing of materials. These include free surface deformation, magnetically-driven melt flow, which may be turbulent or mildly turbulent [5] depending on the applied conditions, and solidification. Thermal stresses also develop in the single crystals, which are affected by the flow and temperature field and which can have direct implications to qualities of single crystals [6]. An understanding of the fundamentals governing these physical phenomena can be of critical value in elucidating the physics that controls the properties of the metal or semiconductor crystals being produced, thereby providing a rational basis for process improvement and quality control."

Jan 1, 1997

By R. Melley, P. Wissner

The paper looks at the basic theory of tri-bological wear and the role played by the lubricant and its additives. It presents the argument that the “real cost of lubrication” is not the purchase price of the oil or grease, but rather the costs associated with not using the correct lubricant. A number of examples are presented, covering oils, greases and additives, in which a detailed evaluation of the application has shown that when all of the benefits of using the best lubricant/additive are evaluated, the savings achievable greatly surpass the incremental cost of the superior lubricant. One of the emerging classifications of costs in industry today are those associated with environmental protection. Two of the examples used describe the replacement of more conventional lubricants with environmentally acceptable products, compounded to compete in all aspects of serviceability, but which have the added bonus of being not only biodegradable but also of being of low toxicity.

Jan 1, 1997

By Simon C. Dominy, Alwyn E. Annels, Paul Wheeler, Suzanne P. Barr, G. Simon Camm

Narrow veins are an important world-wide source of silver, tin, uranium and particularly gold. To potential ?nanciers, this style of mineralization is viewed as high risk because of the often relatively small resource involved and high cost of estimation. In many cases diamond core drilling will not enable resource estimation beyond the inferred and indicated categories. Exploratory under-ground development is required to de?ne measured resources. The de?nition of geological and grade continuity are major factors in narrow vein assessment. A measured resource must be based on strong geological and grade continuities. Narrow veins, generally less than 3 m wide, are complex geological phenomena, which commonly display unpredictable geometry and grade distribution. Variations in structural continuity, dip, strike, width, mineralogy and speci?c gravity are common. Veins may be composite, with ore-grade mineralization restricted to a speci?c structural domain. Branches, intersections and braided zones are common features. Potentially high-grade zones are often localized within ore shoots, which are surrounded by barren/low-grade regions. Resources must be determined as closely as possible to reality and re?ect the distribution of the commodity in the rock. Estimation has three main requirements: (1) geological study to determine orebody nature;(2) estimation of tonnage and grade, and (3) the presentation of this information using a classi?cation that is clear, unambiguous and bankable. Estimation methods employed are either classical or geostatistical; however, classical methods are often used because of the dif?culties in applying geo-statistics. Grades generally show a strong positively skewed distribution testifying the presence of high-grade values. Problems exist in the applicability of cutting outlier values risking over- or under-estimation of grade. It is generally believed that where resource estimates are in error, poor geological control is usually the cause. Overestimation can lead to the closure of a mine through lost revenue and capital. An understated estimate can result in an opportunity missed for pro?t and/or greater economies of scale. De?nition of reserves involves the consideration of economic and engineering data, to decide which part of the resource is economically mineable. Geology plays a similarly important role at this stage in the assessment of likely mining method, dilution, recovery etc. Throughout resource/reserve estimation, it is crucial that the amount and quality of the data and the geologist’s experience are relevant. The impact of geological understanding on estimation is often undervalued or assumed to be of lesser importance than ?nding grades and tonnages. This paper discusses the geology of narrow vein deposits and the importance of geology in their evaluation.

Jan 1, 1997

This is what I term ... the graveyard end of any Conference. It's almost over. Those of you remaining are either all talked out or past the information overload stage. And some of the sensible? ones have left for more exciting field trips, or gone back to their work-site where they earn their daily crust, or headed off South to another Conference of interest to the Energy sector that is being held currently in Christchurch. But that's OK. I have a thick skin! And neither am I particularly Politically Correct! I am not a miner: I am not involved in the mining industry in a hands on way at all. I am not even an academic. I am not even too sure why I am here ... apart from the fact that I agreed to come! At various times in my life I have been a D istrict Councillor, Chairman of a Regional Council and even an MP. I am a supporter of responsible mining.  All of what I have to say is my own point of view rather than that of either the Coal Producers' Federation or the mining industry. That is not to say that we are often in agreement, but I thought I would clear that point right at the outset. And some of what I will talk about will not strictly be to the topic - it's hardly mind-bending riveting stuff. Well, is it? But obviously because you are still here you have some interest in the topic.

Jan 1, 1997

By Randall M. Wheeler

Many of us have used a seismograph to measure peak particle velocity and frequency. But do we really understand why? Also, why do we measure particle velocity instead of displacement and/or acceleration? What is the vector sum? How do these items relate? Where does frequency fit in? This workshop will attempt to answer these and other questions. Some of the answers may surprise you, others may not.

Jan 1, 1997

By P. J. Lunder, R. C. Pakalnis

This paper presents the results of research that has been undertaken in order to develop an improved method of determining the strength of hard-rock mine pillars. Pillars are found in various shapes and sizes in all underground mining operations. Prudent engineering design requires that if pillars are to perform as desired, both the pillar strength and the pillar stress must be determined. A detailed pillar stability study has been combined with an extensive database of published pillar case histories (178)resulting in a new “hybrid” pillar strength formula, “The Confinement Formula”, that utilizes classic strength of rock methods combined with empirical methods. “The Confinement Formula” utilizes a “mine pillar friction term” calculated from the average minor/major stress ratio with-in the pillar core. Statistically, the new formula provides better results at predicting pillar strength for the combined database than the best empirically ft pillar methods that currently exist. “The Confinement Formula” allows for the determination of the strength of mine pillars with an increased level of confidence over previously applied methods.

Jan 1, 1997

By A. Fleming

The exploration process, like any other commercial activity, can only succeed if the objective of the exercise is clearly defined and persistently pursued. Successful exploration requires properties, funding, personnel and persistence. Many of us have years of experience in conducting exploration in our countries of residence. Conducting exploration in a foreign country, however, requires a number of significant other criteria.

Jan 1, 1997

By D. Williamson

In the post war years metals analysts and statisticians have generally tracked the demand for metals in line with changes in OECD industrial production (IP) growth rates because, undoubtedly, the correlation between IP growth and metal demand was reasonable. However the correlation was exaggerated. During times of expanding IP growth metal demand increased at a faster proportional rate than IP growth. This was probably due to industry restocking in anticipation of growing demand at the start of each economic cycle. Conversely, metal demand would slacken at a greater rate than would be suggested by negative IP growth as industry destocked in order to reduce costs. Nonetheless, overall, a reasonable correlation between IP growth, over the longer term, and metal demand could be painted. Yet, although this correlation has stood well since the last world war it has been based on the fact that the bulk of the world's IP growth stemmed from the industrialized countries of the western world, latterly including Japan. The so called "developing world" was of little consequence, whilst countries of the Soviet Union and Communist Bloc were deemed to be closed, self-contained entities which, for each metal, would either be net exporters or importers. These quantities would be used by analysts to calculate the overall supply/demand equation for the western world only and to deduce whether a commodity was in shortage or surplus. It is now believed that this method of projecting total world supply and demand for raw materials is outdated and takes little account of the worldwide political changes which have occurred since the collapse of communism and the revitalization of China, albeit under a notional communist government. It is no longer appropriate to assess global balances for raw materials on the basis of three economic blocs namely, western world, developing world and communist bloc. Rather, global balances need to be projected on a global basis. In this regard, since the collapse of communism and the removal of many other totalitarian regimes, capitalist forces are at work and are attempting to satisfy, with some considerable success, the expectations of the great mass of the world's poorer people. Such people, usually located in Asia, Africa and Latin America have aspired to the same standard of living as people living in western Europe, North America and Japan. Now, with free market forces at work their aspirations will start to be met. Consequently, the demand for metals and other raw materials will now rise at a much faster rate than at any other time in the world's history. Not only will the production of raw materials have to keep pace with rising IP in the developed world but will also have to keep pace with the demands associated with the rising expectations of rapidly increasing populations in the developing world, as well as from within the old communist bloc countries. This paper sets out to argue the case that metal demand could well increase at a rate faster than the world's mining companies, governments and financiers can deliver.

Jan 1, 1997

By John L. Didlinger

We all hate the paper work in keeping accurate blasting records. Nevertheless, have you ever thought what those records could show you? Think about it. Those records could show you vibrations, noise, and safety problems. They could show you the ratio of powder used and tons produced, the cost per foot, even help negotiations for pricing.

Jan 1, 1997

By Harold L. Gibson, Don H. Rousell, Ian R. Jonasson

"Abstract - The Sudbury Structure consists of three major components: 1) the Sudbury Basin; 2) the Sudbury Igneous Complex which surrounds the basin as an elliptical collar; and 3) an outer zone of shatter-coned and intensely brecciated footwall rocks. Although the Sudbury Event which formed the structure may be unique, the area has, in fact, been shaped by a series of tectonic, magmatic and mineralization events which can be considered in terms of two Wilson cycles of continental extension and closure. The first cycle, from 2500 to 1700 Ma, included the following events: doming (uplift of Levack Gneiss Complex); NE-SW extension (Matachewan dikes); N-S to NW-SE rifting (faults, mafic intrusions, sedimentation, and Ni-Cu-PGE and U mineralization); NW-SE extension (Nipissing diabase, and Ni-Cu-PGE, Ag, Co mineralization); and NW-SE and NE-SW closure (Penokean Orogeny, 1900 to 1700 Ma) with superimposed meteorite impact (1850 Ma, Ni-Cu- PGE, Zn-Cu-Pb deposits). The second cycle, from 1700 to 1000 Ma, included: N-S extension (alkali metasomatism, Au); N-S extension (hornblende diabase dikes along the Murray fault set); NNESSW extension (olivine diabase dikes); NE-SW extension (Fecunis Lake fault set); and NW-SE closure (Grenvillian Orogeny).The rich and diverse Ni-Cu-PGE and subordinate Zn-Pb-Cu and Au mineralization of the Sudbury region is related to endogenic and impact-triggered crustal extension and magmatism. The Sudbury Structure apparently was the site of a triple junction or hot-spot. The Sudbury ores, although located within an impact structure, are analogous in terms of age and tectonic setting to Ni-Cu-PGE and Zn-Pb-Cu ores elsewhere in the world. Meteorite impact accentuated on-going ore forming processes and magmatism at Sudbury."

Jan 1, 1997

By John Wallace, Chib Iheagwara

"Refinements in sensor design have produced low-cost rugged elements to act as loop coupled with stable detection hardware for eddy current measurement in difficult environments. This has allowed direct dimension gauging of nonferrous and ferrous products above the curie point for absolute dimensions and electrical conductivities independently. The software was developed for the analysis of electrical conductivity profiles in CZ silicon crystal growth, then refined for monitoring bar properties and tube properties. Since in most metal working operations, speeds at the minimum of a few hundred feet per minute are encountered the design of the gauge was optimized for a rapid measurement. Independently extracting electrical conductivity provides data in some metal systems for determining the temperature of the monitored product.IntroductionThe primary reason for the use of eddy currents in gauging is that in hostile environments of metal working techniques such as laser gauging and ultrasonics are not always robust enough for in process measurements. Our goal is to use the technique of eddy current measurement as a quantitative control element in various hot and cold processing operations. Inspection in the early stages of metal and semiconductor processing is usually too costly to introduce in a well developed process and these tools are usually only employed in process development. Until recently there has been no efficient general analysis to allow real time measurements in the cylindrical and the probe geometry that could separate dimensional changes from material property changes both which effect the eddy current response. The basis for these measurements is that forward electromagnetic problem for conductors can be solved exactly for the test geometry which allows an inverse analysis to be made by relaxing the dimensions and conductivity to values which reproduce the measured response[!]. This transformation is based on analysis developed in Robert Siegfried' s thesis and was explored both by modeling and by physical measurement. This analysis was extended over the last few years to allow a more compact data set to be used to exact physical properties. The main result was that the technique would work on high ·quality physical data on as little as three test frequencies with the penalty being that the analysis is computational intensive. The main result of this work was that a quantitative inverse analysis of eddy current response would allow a general instrument to be used for a variety of measurements rather than being tailored for a specific measurement on a specific material test geometry. The development of these instruments has progressed over the last ten years for monitoring real time solidification, crystal growth[2] and hot seamless tube forming where the use of standards in traditional eddy current is limiting. The specific instrument design was dictated by the requirements of the algorithm for both frequency selection and levels of systematic noise that could be tolerated. Because the data is need for real time information this dictated that the system be a parallel multifrequency eddy current instrument feeding the same sensor. The sensor have to be simple and robust and usually a single loop or several loop of heat resistant wire or tube. This presentation is about using inversion of multifrequency eddy current data in real time to produce dimensional and property data on cylindrical conductors and planar conductors in real time. The object of the measurements is to produce dimensional outputs on measurements of conducting material without having to establish a detailed standard for each material or size tested. The dimensional measurements using eddy currents is complicated by material variations in conductivity due to temperature and composition. Those variations that are not geometric are often not of critical interest and complicate the measurement. The dimensional changes are often of more importance"

Jan 1, 1997

Over the longer term, the adoption of new technology is an essential component in the endless tasks of reducing mining costs, improving safety and improving environmental standards. However the choice of which of the many available new technologies to adopt and which not to adopt is not easy and the price of mistakes can be very high. The most important issue for mine developers faced with making such choices is knowing whether or not a new technology has been developed to the stage where the timing is right for its adoption. A system for categorising new mining technologies is provided. It provides a basis for more easily reaching common understandings about various new technologies and the background information supplied provides an understanding of what it takes to get new technologies to the proven stage and the risks of never getting there. Wherever possible, new full-scale mine developments should not rely on unproven technologies. Approaches to handling situations where a proposed new mine development is not feasible on the basis of proven technologies are also provided. If any commitment to the use of unproven technologies is made, a guarantee of high quality development support from the supplier of that technology is essential. Several case studies of successful and unsuccessful new technology development programs at BHP are Provided.

Jan 1, 1997

By Kenneth A. Brunk

"This address discusses how ""Mineral Processing Technology"" can play a major role in the life and profitability of a mining company. Examples of past and present technological breakthroughs and their impacts will be examined. Also, the future of processing technology will be emphasized.IntroductionThis talk will center on the role of technology as an important component of a business plan for mining companies. I'll attempt to explain how I see technology development as an underpinning of a successful mining company. We will examine an example of a technology that has resulted in a re-birth of segments of the industry, examine a technology life cycle and discuss technology as it relates to ore reserve replacement. Also, we will touch on technology in today's mining company and propose some food for thought for those designers of corporate organizations."

Jan 1, 1997

By M. C. Bétournay, J. E. Udd

"The Mining Laboratories of CANMET are the principal federal government vehicle for the delivery of mining research in Canada. With research being performed at five locations, which are mostly mining communities, the laboratories are in close proximity to the industry which they serve.The Mining Laboratories have three principal roles: (1) to support government in its development of policy; (2) to aid industry in the enhancement of productivity; and (3) to improve the health and safety of Canadians,both in the workplace in mines and around abandoned mine sites.From 1994 to 1996, CANMET’s mining research was re-focused into four programs. These are: (1) Underground Mine Environments; (2) Mine Mechanization and Automation; (3) Ground Control, and; (4) Coal Mining Health and Safety.In this paper, the authors outline the work of the Mining Laboratories and also identify the areas considered to be primary targets for future mining health and safety research in Canada."

Jan 1, 1997

By T. Owen

Not since 1917 has a foreign company developed a standalone, grass roots gold mine in Russia. With. Russia's political changes of the late 1980s, development of mineral prospects once again beckons foreign investors. In 1990, Cyprus Amax began aggressively searching for such an opportunity. Early in 1997, production will commence at the Kubaka gold project located in the Russian Far East, near the Arctic Circle. The Kubaka project is a 1,750-tonne per day open-pit operation that will produce more than 300,000 ounces of gold per year. This paper discusses the challenges of locating such a prospect, doing business in Russia, developing supply lines, identifying work force capabilities, gaining government approvals, securing financing, arranging for gold sales and ultimately building a facility in this arctic region.

Jan 1, 1997

By G. C. Presley

With plant construction scheduled for the Spring of 1997, U. S. Zeolites will become the new source for quality in natural zeolites. The company will selectively mine, dry process, package, and market a very high quality clinoptilolite possessing many unusual properties. These unusual chemical and physical properties provide a multitude of industrial, commercial, and consumer applications. Extensive testing has determined many potential applications.

Jan 1, 1997