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By D. J. Torpy

With copper at its host depressed price in several years, producers are looking at every opportunity to cut costs in order to continue operating. Some of the measures that have been applied by different companies include reduction in manpower, high grading, and in some cases partial shutdowns. The most beneficial cost cutting measure implemented by Southern Peru Copper Corporation was to steepen the slope of the final pit limit from a conservative 37 degrees to an average of 48 degrees. By doing so, substantial cash outlays were saved. Southern Peru Copper Corporation (SPCC) operates two open pit copper mines and concentrators in the southern part of Peru, about 150 kilometers from the Chilean bordar. The Toquepala Mine went into production in 1960 and the Cuajone Mine in 1976. Both mines use shovel, truck and train operations. The trains, which haul ore to the crusher or waste to the dumps, are loaded either directly by shovels or by a transfer system. The Toquepala Concentrator treats an average of 43,000 tons per day and the Cuajone Concentrator an average of 55,000 tons per day. Concentrates are shipped via a 200 kilometer railroad to the port city of Ilo where the SPCC smelter is located. The annual production in the smelter from both mines is 290,000 tons of blister copper.

Jan 1, 1987

By Stanley Dempsey

INTRODUCTION The mining industry has been under- going a significant restructuring for the past several years. Some firms have been liquidated. Some have been merged with other firms. A number of mining divisions of larger firms have been spun off, in some cases in leveraged buyouts by management. Recently, there have been a number of spin outs of gold subsidiaries. There are also a number of start-up situations where new firms are emerging as significant gold producers through mine development or acquisition. This restructuring has created an attractive market for specialized mining finance firms, and a number of firms have recently entered that field in the United States. These firms provide financial advisory and valuation services to mining firms and project developers, and access to venture capital. In some cases, they invest for clients or for their own account. I have been asked to describe how our firm works, and what kind of information we expect to receive when mine developers seek our assistance in financing a project. HOW WE OPERATE Denver Mining Finance works for both mine developers and investors. We also provide expert advice on mining issues to governments and to firms who are in litigation over mining issues. A lot of our work involves valuing mineral interests for various purposes. Our principal expertise is in the technical, commercial, and financial area. We help put mining deals into shape commercially so that they can be financed, and we help investors get into mining deals that are commercially sound. We work on projects, but we also advise mining firms on the structure of their business and how to make the most out of one or several mines that they might own. In addition to our work for clients, we are also prepared to invest in mining projects for our own account, and to recommend gold properties for acquisition by our parent company, Royal Gold, Inc. We are, to some extent, a venture capital firm, in that we sometimes work with projects that are not "bankablerV1 and are prepared to invest in attractive early-stage situations in mining. However, I want to emphasize that our principal focus is on development of commercially attractive mining projects that can be brought into production in the best possible financial terms. If we can make a project qualify for a project loan from a commercial bank, we will not advise the developer to use high cost venture capital. For the purpose of this paper, I will focus primarily upon our functions with respect to development of precious metal projects. In a typical case, a firm with an advanced-staged project approaches us for help with financing the final feasibility study, and construction and operation of a mine. In some cases, the developer has already developed a financing plan and wants only our access to investors. If we agree that the project is sound and that the financing scheme will be attractive to investors, we will help the developer reach investors on a commission basis. In such cases, we are particularly insistent that the financing plan and our participation meet all regulatory requirements, particularly compliance with state and federal securities laws. In most cases, however, the developer asks us for advise both on how to structure the financing, and how it can be implemented. Here we work for fees based on hourly rates for advisory work,

Jan 1, 1987

By H. Kellerwessel

This paper refers to the new crushing and grinding process, which was invented by Professor Schönert (Ref.1), Clausthal, Germy (author of one of the papers presented at this meeting). The process is known as high pressure particle bed comminution or interparticle crushing. Several papers by Professor Schonert and his coworkers and by specialists of the companies producing the necessary equipment under license agreements already described fundamentals of the process, the equipment used, results of lab size and large scale tests and finally the first results of truly commercial operations (Ref .2 to 11). Therefore it should be sufficient to summarize the main facts here: - To a bed of bulk material a pressure of more than 50 MPa is applied. Comminution is achieved mainly by the pressure which one particle transfers to the other and not by squeezing single particles between the working surfaces of some crusher or grinding media.

Jan 1, 1987

By A. D. Walters

Computer simulation models of preparation plant operations and cost analysis have been used to determine the profitability of individual coals. The model's input consists of raw coal size and washability analysis, operating cost data, and raw coal and clean costs. The model's output predicts yields, qualities, costs and profitability for an individual coal.

Jan 1, 1987

By B. V. Clingan

A practical application of recent design concepts makes it possible to design a column cell to fit a specific set of conditions. The design and operating parameters Of a column cell installation that replaced a conventional two stage copper flotation cleaning circuit at MAGMA COPPER COMPANY, SAN MANUEL, ARIZONA using these design concepts is described. A survey of other mineral processors using column cell technology was conducted. The results of this survey will also be discussed.

Jan 1, 1987

By Steven E. Paulson

In situ mining is emerging as a potential alternative to conventional surf ace and underground mining techniques. A major factor in determining recoveries by in situ mining is the proportion of ore minerals that can be contacted and solubilized by the leach solutions. To provide basic information on the processes occurring during in situ leaching, particularly at the microscopic scale, the Bureau of Mines has developed a geologic characterization research program. This includes laboratory experiments using leaching apparatus that can accommodate whole core samples. Whole core experiments result in higher leach solution-ore mineral contact ratios than packed column experiments, and also allow for the assessment of permeability changes taking place as the result of mineral dissolution, precipitation, and clay swelling within the flow channels in the rock. A nonreactive, reusable reaction cell has been designed and tested. The leaching apparatus can be used for constant-pressure or constant-flow experiments and allows for the control of flow rate, pressure, and temperature during the experiments, thus permitting studies on a wide variety of ore samples. Details of the experimental apparatus and design are presented, as well as preliminary results from the first series of experiments on an oxide copper ore from the Casa Grande, AZ, area.

Jan 1, 1987

By John Berney-Ficklin

Large scale grinding mills can reduce both capital and operating costs for concentrators. These mills can be effectively used, but they must be free from design and manufacturing deficiencies if they are to reach their full potential and avoid costly downtime. This paper presents the evolution of today's complex grinding mill specifications and discusses the most important items to look for when buying new equipment. It emphasizes the need to monitor specification requirements during design and manufacture. It also discusses the growing trend to have grinding mills fabricated in overseas plants, and the importance of recognizing this when preparing specifications.

Jan 1, 1987

By B. Caines

Much of the mining industry in North America is in a crisis state. Host producers are operating at production levels well below capacity, some have been merged or sold, while others have been mothballed or closed permanently. For many of us still operating, the future is uncertain. Despite the many cutbacks and closures, there is still an abundant supply of minerals in the world market and there is almost no hope for any relief on price pressures on most mineral commodities in the near future. The Iron Ore Company of Canada (IOC)operates an iron ore mine, a concentrator and a pellet plant known as the Carol Project located in Labrador City, Newfoundland. This concentrator and the pellet plant have the annual capacity to produce 20 million and 10 million tons respectfully. A company owned and operated railway links this operation with the dock terminal facilities in Sept Iles, Quebec.

Jan 1, 1987

By R. M. Yeates

Public concern over possible degradation of groundwater resources has resulted in an array of Federal laws and corresponding state laws to regulate contaminates from solid and hazardous waste. A mine owner must be familiar with environmental regulations which could impact his operation and must know what precautions and corrective actions to take in order to protect his mining operation from potentially expensive remedial actions. The Environmental Protection Agency (EPA), has issued few regulations controlling the management of mining wastes. Federal regulation of mining came primarily under the Surface Mining Control and Reclamation Act (SMCRA) administered by the Office of Surface Mining (OSM). Waste generated from the extraction, benefication and processing of ores and minerals was exempt from regulation under the Resource Conservation and Recovery Act (RCRA), which is EPA's major instrument in controlling surface contaminates. On December 31, 1985, EPA submitted to Congress a report entitled "Wastes from the Extraction and Benefication of Metallic Ores, Phosphate Rock, Asbestos, Overburden from Uranium Mining and Oil Shale", which will be referred to, henceforth, as the Congressional Report. This Congressional Report assessed the possible adverse effects of mine associated wastes. This report is the first step toward developing regulations with which EPA can regulate waste from the extraction, benefication and process of mineral ores.

Jan 1, 1987

By R. S. Olsen

Intensely altered rock has had a large effect on slope stability as slopes increase in height at Island Copper mine. Traditionally used, fracture-controlled rock slope stability design techniques have been supplemented with analyses of failure modes which include failure along curved surfaces typical of soil materials. A rock mass rating (Pa) system has been developed that addresses the lower end of rock mass strengths. Rock masses are rated in terms of fabric integrity, alteration, fracturing intensity and gouge strength. Rock mass classes have been defined using statistical frequency distributions of rock mass rating values. Strength values have been assigned to the various classes from shear testing, back analyses of failures and engineering judgment.

Jan 1, 1987

By D. R. Forshey

Although the United States has the world's largest coal reserves, most of those reserves will require underground mining. Unless underground injury and fatality rates are reduced, the number of disabling injuries and accidental deaths will grow as coal production increases. The Bureau's Mining Research Program, designed to reduce the exposure of workers to hazards while improving productivity, is described. Major program thrusts are 1) re- moving the hazards or removing miners from the areas in which hazards exist, 2) developing ways to improve management decisions and mining skills so as to reduce the incidence of situations requiring human involvement in hazardous, emergency, or corrective tasks, and 3) improving, or at least maintaining, productivity so that both the tangible (dollar) and intangible (human) costs are reduced. In these ways, projected demands for coal can be met using resources without an increase in human suffering.

Jan 1, 1987

By E. R. Cole

One objective of Bureau of Mines recycling research is to devise technology that enables recovery of metals and minerals from wastes. From October 1982 through September 1985, researchers at the Bureau and at the University of Missouri Rolla (contract H0222002) investigated the use of nonferrous flue dust with varying Zn contents (11 to 66 pct) as a source of Zn for electrogalvanizing steel wire. The waste dusts used were from a secondary Cu smelter, a brass smelter, a Pb smelter, and a water treatment plant. The dusts were leached in H2S04, and the leach solutions were treated to make electrolyte for electrogalvanizing steel wire using soluble Zn anodes. Cyclic voltammetry was used in an inno-vative method to evaluate the quality of the electrolytes used for elec-rogalvanizing. After electrogalvanizing, the wire was drawn on a labo-ratory draw bench to simulate industrial practice. Corrosion resistance was measured by a number of electrochemical techniques and by the stan-dard ASTM salt-spray tests. After successful bench-scale tests, the process was demonstrated in an industrial pilot plant. Results indicate that nonferrous flue dusts can be used as a source of Zn for electro-galvanizing if certain impurities are either partially or completely removed from the starting electrolyte.

Jan 1, 1987

By A. M. Krzanowski, T. S. Golosinski

"This paper presents results of a study undertaken to determinethe feasibility of mining plains overburdens with bucket wheel excavators. Based on extensive geotechnical testing of overburdens under study, the relations between material geotechnical properties and its cuttability were defined. The properties with the highest correlations to the cuttability werethen used to develop the material diggability classification. This classification may be used for identification of overburdens and coals mineable by bucket wheel excavators.IntroductionLow cost of mining and high productivity can be achieved when mining unconsolidated soils and soft rocks with bucket wheel excavators. As a result this mining equipment will likely be introduced into plains coal mines. At present there are plans to use a bucketwheel excavator (BWE) in at least one mine by the end of this decade. Unfortunately, the performance of a BWE deteriorates rapidly with the increasing strength of mined material. To avoid costly misapplication, material diggability must be defined in advance of an application (i.e. the force required at the cutting edges of BWE buckets must be quantified). Correct definition of material diggability permits reliable selection of a BWE, or may indicate unsuitability of this equipment for a particular application.The reported studyu i was undertaken to investigate the diggability of typical prairie overburdens and thus provide a guidance for likely future applications of bucketwheel equipment. Investigations concentrated on the parts of overburden most likely to create problems for a BWE mining. These are defined in Table 1. At present, thin layers of the two investigated materials (samples K and L) are mined by a BWE in an oil sand mine, after being loosened by blasting."

Jan 1, 1987

By Vladimir Adamek

This paper describes the Bureau of Mines development of a novel subsidence prediction methodology suitable to the mining and geologic conditions in the Northern Appalachian Coal Region. It describes the computation of vertical and horizontal movements, inclination, curvature, and horizontal strains. The substance of this method is the separation of the effects of lithology by introducing a correlation between hypothetically homogeneous overburden and existing lithologic conditions, while providing for different mining conditions, i.e., underground geometry and overburden thickness. The effects of lithology have been expressed in the form of a variable subsidence coefficient within the subsidence trough. The subsidence co-efficient is considered a constant for other predictive methods. Field data from 16 test sites at 11 Bureau longwall panel studies were used in the analysis. For each panel, the characteristics of the variability of the subsidence coefficient were defined. Regression analysis of the subsidence coefficients from all test sites on their locations relative to the edges of their respective panels yielded a third-degree polynomial equation. The results from additional longwall panel studies, not included in the regression analysis, were used to prove the validity of this method. To facilitate the use of this precalculatlon methodology, a computer program was written in BASIC for use on a personal computer.

Jan 1, 1987

By Keith L. Harris

Surprisingly, real gross national product (GNP) surged at a seasonally adjusted annual rate of 4.3% for the first quarter of 1987 according to preliminary estimates made by the Department of Commerce, the highest rate in 3 yr and significantly above the revised fourth quarter 1986 rate of 1.1% (table 1). The spurt, however, was caused by an unusual $59.5 billion rise in inventories, mostly cars and trucks, and there was little support from other sectors of the economy. Motor vehicle inventories rose as consumers continued to tighten their purse strings--consumer spending declined 0.4% for the second quarter in a row. Nonresidential and residential fixed investment and government purchases of goods and services were also down from the previous quarter. The increasing cost of energy was the major factor in the jump to 3.696 in the rate of inflation, as measured by the fixed-weighted price index for GNP, and rising inflation also helped put a damper on consumer spending. The underlying good news was that the trade deficit shrank for the second quarter in a row as imports declined at an annual rate of 11.1%. Also, profits in the manufacturing sector rose strongly in the fourth quarter, and for the first time in 9 quarters, the primary metal industries became profitable (table 1). If one discounts the anomalous inventory growth, the bottom line is that the economy continues to grow at close to the expected 2.5% level experienced over the past 2 yr. Of concern over the next several quarters, though, is the impact of the large over- hang of motor vehicles inventories on the economy. EMPLOYMENT The civilian unemployment rate declined to 6.636 in March after remaining at 6.7% for the previous 3 months. Employment continued to expand in February and March, although growth was significantly slower in March than in previous months. The manufacturing sector, however, lost 24,000 jobs in March after gaining 46,000 in February. Three-quarters of that gain came when striking workers at USX Corp. and Deere & CO. returned to their jobs. Employment in the manufacturing sectors of direct interest to the mineral industries has generally been increasing for at least the last quarter, while worker hours for these sectors have been on the upswing since April 1986 (figures 1 and 2).

Jan 1, 1987

By Robert A. Clifton

This Bureau of Mines report discusses the mineralogy of zeolites, the properties that make them commercially valuable, the conditions of formation of both natural and synthetic zeolites, and present and potential markets.

Jan 1, 1987

By J. L. Holman

The Bureau of Mines is investigating recovery of Ni, Co, Cr, and other metals from mixed contaminated supera110y scrap. The scrap is melt-refined and cast into anodes for electrodeposition of recyclable Ni-Co alloy. Melt oxidation using roasted superalloy grinding sludge as oxygen source can divert the Cr to the slag but with excessive Ni-Co loss. Melt oxidation-carburization or direct melt carburization retains -95 pct of the Ni-Co in the anode alloy. With direct carburization, -90 pct or more of the Cr and other refractory metals report to the anode alloy, largely as carbide phases insoluble in electrolysis. Electrorefining data relate parameters such as controlled cathode potential, Fe and Cr impurities, pH, and compartmented cell use, to current efficiency and Ni-Co deposit quality. Recovery of -90 pct of the Ni-Co in the scrap can be achieved. Preliminary experiments to recover Cr, W, and other metals from the anode sludge and other byproducts are discussed. 347

Jan 1, 1987

Cutter roof failure, a ground control problem that frequently results in massive roof failure, is common in coal mines of the Northern Appala-chian Coal Basin, causing delays in production and posing a safety hazard to mine personnel. The Bureau of Mines is conducting research on the causes of cutter roof failure to gain a basis from which to predict and prevent its occurrence, and to support such roof when failure occurs or is imminent. Research conducted at the Greenwich Collieries North and South Mines, in central Pennsylvania revealed a correlation between the presence of clastic dikes and formation of cutter roof failure. The research con-sisted of in-mine mapping of geologic and deformational features, rock pressure monitoring, core recovery and evaluation, and in situ stress measurement. It was found that roof failure increased in areas where the occurrence of clastic dikes was most frequent, especially where two or more clastic dikes intersect. Staggering of crosscuts prevented the extension of cutters and deterred the occurrence of large falls extending over several break-throughs. In addition, trusses and cribbing were effective in stabilizing clastic dikes and inhibiting the development of cutter roof failure when employed immediately or shortly after mining.

Jan 1, 1987

By René Winand

A new process was studied at large laboratory scale at Université Libre de Bruxelles, under contract with Metallurgie Hoboken-Overpelt. A two cathodes (1m long ; 0.2 m high) channel cell was used at 2000 A/m2, with an electrolyte flow rate up to 1.8 m/sec. The main results may be summarized as follows : cathodes are electro¬refined grade in analysis ; metallographic structure and surface roughness are kept under control up to 1.3 cm (one side deposits) ; silver in cathode is controlled by CI and Br ions in solution ; organics must be used at very low concentrations (in the range of 0.1 mg/1, with a consumption of about 0.01 mg/lh).

Jan 1, 1987

By Lynn B. Hales

Everywhere you turn today there are articles on artificial intelligence and the rapid emergence of expert systems. Expert systems form a class of software that has developed as a result of the large research effort to develop computers and software that think intelligently. By definition, an expert system is a computer program that contains the knowledge component of an expert skill, can offer intelligent advice and justify its line of reasoning. Expert systems can advise people on what actions to take and when, assist in the diagnosis of the physical condition of a human patient or piece of equipment, or even take actions without human guidance, as in process control applications. Expert systems can also explain the line of reasoning behind a particular piece of advice or query for information from the user. Expert systems can be used as advisors to newcomers in any field in which mastery is attained by many years of experience. They often can provide expertise more uniformly and rapidly than human experts. Expert systems can also provide a means of documenting expert knowledge and procedures and provide a common repository for a changing knowledge base. The expert system can represent the best expertise available, thought out in the absence of pressure situations. Each of these attributes or characteristics should be helpful in improving typical concentrator control systems.

Jan 1, 1987