Search Documents

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth's surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

By A. Ignatow

"A review is made of some of the principal factors and conditions that are, and will be, important to the over-all market climate for asbestos fibre and for the future of Canada's asbestos industry: - health hazard associated with asbestos exposure;- uncertain international regulatory environment for continued asbestos use;- adverse public reaction to asbestos;- product liability/litigation costs (U.S.A. primarily);- promotion of substitution by governments and asbestos user industries; and- minimal product and market development efforts by asbestos producing and consuming industries.In addition, Canadian producers, who export some 95 per cent of their production, face additional constraints:- dramatically reduced integration with asbestos-consuming industries;- 60 per cent of exports to most rapidly declining markets (U.S.A., Europe);- increased competition from offshore producers favourably located to growth markets in developing countries;- increasing production costs;- a strong dollar;- disadvantageous freight rates; and- loss of price leadership and price erosion.Future market trends, as well as prospects for Canada's asbestos industry, will be projected in this paper.Economic FactorsTable 1 presents asbestos fibre production in all countries for the period 1980-82. In certain instances, e.g. U.S.S.R. and China, these are capacity estimates as production statistics are not officially published. The U.S.S.R, by far, is the world's largest producer accounting for some 50 per cent of world production, though most production is consumed internally or by COMECON countries. It is estimated that some 700 plants produce asbestos-containing products within the U.S.S.R.Canada accounts for some 25 per cent of world production though it ranks first in world trade. Other important producers are South Africa Zimbabwe, Brazil and Italy. Since 1979, Canada's asbestos mining industry has experienced a dramatic drop in production and exports of asbestos fibre, as demonstrated in Table 2."

Jan 1, 1985

By Francis X. McCullough

After OSHA published a Notice of Proposed Rulemaking on August 5, 1983, to revise its standards for Underground Construction, many contractors and their representative associations became concerned by the sweeping changes in the proposed rule. After reviewing all of the evidence and testimony on file with OSHA, the contractors presented extensive written and oral testimony to the Department of Labor in Washington, D. C. to help insure that the final published rule would be effective without jeopardizing the economic viability of the industry. The results of those efforts, the entire OSHA rulemaking process, and the opportunity for the construction industry to participate in that process will be discussed.

Jan 1, 1985

By R. V. Ramani

This volume is the fourth of a four-volume final report on research carried out under a contract from the U.S. Bureau of Mines on the development of a computer simulation model for surface mine reclamation planning. The other volumes are titled as follows: Volume I: Ore Reserve Estimation, Volume II: Dragline Model, and Volume III: Mine Coordinate Generator System. The Open Pit Materials Handling Simulator (OPMHS) was first developed" in 1971 and modified and updated in 1975. The present work is an update of the 1975 version and provides a direct link between the geology and reserves system and the various activities of the mining equipment in a mining system. Also, the modeling techniques in OPMHS/2 have incorporated a flexible method for describing various equipment (shovels, trucks, belts, trains, etc.), locations, their sequence of operations, place changes, and their interactions. These features allow for studying mining equipment selection, mining method analysis and reclamation planning. This report describes the Open Pit Materials Handling Simulator Version 2 (OPMHS/2). The report details the program features, operation, and application. Through an extensive set of appendices, the data input sequence, input variable definitions, sample data listing and program output are presented in detail.

Jan 1, 1985

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By D. J. Barratt

The application of autogenous and semi-autogenous grinding circuits in recent years has contributed toward substantial savings in capital and operating costs compared to conventional circuits, particularly for large scale copper and molybdenum operations. Such savings have been realized from the deletion of operating, maintenance, equipment purchase and substantial civil/structural costs associated with secondary-/tertiary crushing and screening, fine ore storage and conveying. In spite of the downturn in the copper- moly industry in North America, there is still an interest in autogenous and semi-autogenous grincting for copper-zinc, gold and silver ores and in the overseas market. Both single-stage and two-stage circuits are in operation. Primary circuits operate autogenously or semi-autogenously in either open or closed-circuit. Critical sizes are extracted and crushed for recycle in some cases (e.g. ABC circuit). Secondary grinding is conducted using ball mills or pebble mills.

Jan 1, 1985

By H. E. James

Much has been said and written about the need to reduce South Africa's dependence on gold. To compensate for the decline in the country's foreign-exchange earnings resulting from the phasing out of gold, which must inevitably occur at some future date, a far higher priority will have to be placed on the mining, beneficiation, and export of the 59 other mineral commodities produced in South Africa. The basic strategy of the mining and metallurgical industries should be to move from the traditional approach of establishing a resource base to the establishment of a market base; to turn from production orientation to market orientation; and to rely less on exploration and economies of scale and more on process innovation and product development. The enthusiasm, entrepreneurial spirit, and commitment of the leaders in the mining and metallurgical industry will clearly be of decisive importance in the establishment of new industries for the beneficiation and export of added-value mineral-based products. The State can make a significant contribution by the provision of a welldeveloped and efficient infrastructure, including rail and harbour facilities, communications and health services, roads, and of electricity and water supplies. In our search for a new development strategy for the beneficiation and export of South Africa's minerals, we need to recognize that no one nation has all the mineralresources that it needs. Commercial and strategic manipulation of mineral supplies should no longer be tolerated. The future of the human species lies in international cooperation and in a greater understanding of the limitations of the world we live in.

Jan 1, 1985

By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd's Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco's experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco's research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco's strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco's financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960's very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo's Project Development Study was completed. in January 1972. Based upon Toyo's cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo's cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco's planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950's and 1960's. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985

By David L. Veith

This Bureau of Mines bibliography of U.S. and Canadian literature pertaining to revegetating coal-mined lands contains 805 references published from 1977 to 1984. Each reference is evaluated by keywords, providing the reader with a means of rapidly sorting through the references to locate only those dealing with the coal mining region and subject of interest. All references are annotated. Other sources of information are given, including Office of Surface Mining (OSM) and State reclamation agencies and other published bibliographies.

Jan 1, 1985

By Branch of Editorial Services

"The Bureau of Mines was established in the public interest to conduct inquiries and scientific and technologic investigations concerning mining and the preparation, treatment, and utilization of mineral substances; to promote health and safety in the mineral industries; to conserve material resources and prevent their waste; to further economic development; to increase efficiency in the mining, metallurgical, quarrying, and other mineral industries; and to inquire into the economic conditions affecting those industries. The organic act of the Bureau, as amended by Congress and approved February 25, 1913, made it the province and duty of the Bureau of Mines to ""disseminate information concerning these subjects in such manner as will best carry out the purposes of this Act.""In accordance with this directive, the Bureau reports the findings of its research and investigations in its own series of publications and also in articles that appear in scientific, technical, and trade journals; in proceedings of conventions and seminars; in reference books; and in other non-Bureau publications. The number of these reports, the wide range of subjects they cover, and the variety of mediums in which they appear make the kind of list and index presented in this special publication both necessary and valuable. This issue of the Bureau of Mines List of Publications and Articles describes reports and articles published during the period January 1, 1980, to December 31, 1984. It supplements the 50-year list of Bureau publications issued from July 1, 1910, to January 1, 1960;1 the 50-year list of articles by Bureau authors published outside the Bureau from July 1, 1910, to January 1, 1960;2 the 5-year lists of publications and articles from January 1, 1960, to December 31, 1964,3 from January 1, 1965, to December 31, 1969,4 from January 1, 1970, to December 31, 1974,5 and from January 1, 1975, to December 31, 1979;6 and the annual lists of Bureau publications and articles from January 1 to December 31, 1980,7 from January 1 to December 31, 1981,8 from January 1 to December 31, 1982,9 and from January 1 to December 31, 1983. 10"

Jan 1, 1985

By K. A. Natarajan, S. C. Riemer, I. Iwasaki

The relative significance of corrosive and erosive wear in magnetic taconite grinding is examined. The influence of different types of aeration (nitrogen, air, and oxygen) on ball wear was established for mild steel and high carbon low alloy steel balls. Ball wear data from dry and wet grinding tests are compared with those obtained in the presence of an organic solvent that does not promote electrochemical corrosion. Marked ball grinding tests and electrochemical measurements involving ball material and magnetite electrodes indicate that contribution from oxygen toward wear (corrosive wear) is relatively small, and abrasive wear appears to be significant. Rheological properties of the slurry appear to have an important bearing on the abrasive wear of grinding balls.

Jan 1, 1985

By Flavelle IV

A survey is made of changes in the technical status of a number of western world copper extraction and refining operations over the past 20 years. Specific developments in pyro- and hydro-metallurgy and refining practices are identified together with factors in the changing environment of the industry which has influenced their adoption. Nickel extraction and refining is similarly discussed.The replacement of traditional technology by more attractive alternatives has occurred in a considerable number of operations. The develop-ment and status of new continuous smelting processes, advances in hydrometallurgy and refining innovations which emerged during the 1960s and early 1970s is discussed. The varying experience in commercial acceptance of these new technologies is noted.Finally some possible future directions are canvassed for both operators and the research and development institutions.

Jan 1, 1985

By D. N. Hedges

This paper discusses the actual recovery and installation of a longwall in a bituminous coal mine in western Pennsylvania. The coal bed mined is in the Lower Freeport seam, which averaged 1.07 m (42 in.) in height locally. Drainage from the mine is about 13.25 ML/day (3.5 million gal per day) of water. This water deteriorates the mine's predominately fire clay bottom making it extremely difficult to move equipment. Support removal is accomplilshed by pulling the 5.44 t (6 st) shields out under their own hydraulic power and transporting them by track 8.05 km (5 miles) to the next longwall panel. This paper also discusses the changes that will be made to aid in the succeeding longwall recoveries and installations.

Jan 1, 1985

By David M. Rempe

The purpose of this standard is to provide a method for testing of cushion materials that leads to uniform results when employed by various organizations and laboratories. The load-deflection characteristics measured using this method are intended to provide input data for analysis of pile driving, as in wave equation analysis of pile driving. It should be recognized, however, that there are several factors which may cause a difference in performance between the test samples under laboratory conditions and actual cushion materials under pile driving conditions. These factors include variations in material properties from sample to sample, compaction and/or deterioration of the materials with use, eccentric loading due to misalignment, confinement effects or the cushion container or inter layered materials, head buildup, rate of loading, etc. In order to obtain representative load-deflection characteristics, therefore, testing of cushion specimens which have been subjected to actual pile driving conditions is encouraged 1 such specimen should be tested at various stages of the useful life of the cushion. The users of the data are cautioned to determine if the particular wave equation program they are using requires either the secant or tangent definition of the stiffness and modulus of elasticity.

Dec 1, 1984

By E. C. Robertson

D.G. Wilder I found the suggestion that the amount of displacement of a fault can be numerically related to the thickness of gouge or breccia to be both intuitively satisfying and intriguing. I have long agreed that there is some type of relationship between the amount of gouge and the amount of displacement of faults. I congratulate the author for developing a numerical relationship between them. However, I am concerned that the limits for applying this relationship be fully understood. An underlying assumption in this approach is that there is either a uniform thickness of gouge or breccia along a given fault or the thickness does not vary widely. Since it is not always possible to confirm this, the displacements derived by this method should be viewed with caution unless significant fault extent can be observed. At the Nevada Test Site, in drifts constructed in granite for test emplacement of spent nuclear reactor fuel, we found a fault with 0.3 to 0.4 m (12 to 16 in.) of clay gouge. Within a few meters of this location, the fault had no clay gouge, but rather consisted of a highly fractured zone with significantly altered rock and some slickensides. Based on Fig. 1, the 0.3 to 0.4 m (12 to 16 in.) thickness of gouge would indicate a displacement in excess of 30 m (98 ft). However, no gouge thickness would indicate essentially no displacement. Based on a quartz vein that terminated on the fault, and is not identified nearby, an estimated displacement of more than a few meters was made. This estimate is consistent with that obtained using the regression line proposed in the paper if the 0.3 to 0.4 m (12 to 16 in.) thickness for the gouge is used. However, using the regression curves with zero thickness would not yield results consistent with what was observed in the field. Therefore, it is important to recognize that the suggested procedure would properly yield a range of probable displacements. ? *Work performed under the auspices of the US Department of Energy by the Lawrence Livermore National Laboratory under Contract W-7405-Eng-48. Reply by E.C. Robertson It is certainly true that the t (thickness) of gg-bx (gouge and breccia) on a fault does vary along the fault. My observations have been that near the termination of a fault, the displacement d is small and the t is also small, whereas the maximum d and t will usually be found in the central part of the fault. The information on gg-bx and t of the fault found in granite in the NTS tunnel by Mr. Wilder could be interpreted somewhat differently than he does. He speaks of the fault changing within a few meters from 0.3 to 0.4 m (12 to 16 in.) of clay gg to "a highly fractured zone with significantly altered rock and some slickensides," but no gg. The highly fractured rock may be taken to be bx, rock not so finely ground as gg but still crushed by the fault movement, equivalent to the gg in my usage, and probably occupying about the same t. Mr. Wilder's estimates for the fault in the NTS tunnel for t of 0.3 to 0.4 m (12 to 16 in.) and for d of a quartz vein, in excess of "a few meters," would place the point on the low side of the central trend line in my Fig. 1, at the lower limit. There is, of course, a problem with determining d using displacement of only one planar surface. It would be greater or lesser depending on the rake of the movement. Finally, estimating the d of a fault from its t should be made with awareness of our present uncertainties, as pointed out by Mr. Wilder. Although the central trend line in my Fig. 1 has a ratio of d/t of 100, I have put the limiting ratios at 10 and 1000. Understanding of the values of the ratio will be improved only with collection of more data, for which the discussion of Mr. Wilder is much appreciated. G.C. Waterman E.C. Robertson's paper provides significant information to a geologist attempting to deduce fault offset by noting the products of structural dislocation. However, considerable mapping in underground and open-pit mines, and examination of structures produced in different geological settings, have convinced me that gouge and breccia thickness are controlled by geological conditions and fault movement. The following paragraphs suggest geological variables that control them. 1. Depth of Loading A near-surface fault resulting from tensional stress has more breccia/gouge than is produced by a similar stress at considerable depth. A deep-loaded compressional stress may produce a linear zone of schist, or structural dislocation may occur along an earlier formed belt of schist. Such "shear zones" are common in Canadian mines in precambrian rocks. In neither case can offset be directly deduced by an analysis of the minimal gouge/breccia in the shistose rocks. At greater depth, stress may be partially to wholly relieved by flowage. I vividly recall first noting the regional "Midas Thrust" in the Lark mine, Bingham Mining District, UT (where we called the structure the North Fault). My recorded notes, as I remember them, showed a narrow gouge streak separated the `Jordan" and "Commercial" limestone units from impure, muddy limestone beds of uncertain stratigraphic position. The visible structure did not indicate the great importance of this premineral fault

Jan 12, 1984

By G. Kemp Williams, Peter H. Dohms, Barry A. Hillman, Laurie A. Williams

Introduction In 1969, the US devalued the dollar. This action, over the ensuing four years, resulted in the deregulation of the price of gold. It also resulted in the rebirth of the US gold mining industry. The extreme inflation of the 1970s led to a dramatic increase in the price of precious metals. Consequently an increased interest in the exploration for and mining of gold has occurred. The enthusiasm began among the few existing producers who had survived on marginal profits during a prolonged period of fixed prices and constantly rising costs. Then came the newcomers. They saw the opportunity to enter an industry that historically had been characterized by small operations with low capital costs. It was not until the late 1970s that large mining companies recognized that investment in gold projects could generate cash flows that previously were associated only with world class deposits. Today, gold mining has tremendous appeal for the entire mining community, despite the dramatic price drop from 1980-81 levels. There are even major firms with no mining experience attempting to gain a foothold. But how easy is it to enter the US gold mining industry? What are the basic factors that influence the economics, and what are they likely to be for the remainder of the decade? How has the industry changed, and what is the composition of the active companies? An examination of the industry will help to answer these questions. US Gold Mining History The current gold rush is actually the fifth in the 208-year history of the US. The first recorded commercial mining of gold occurred in the Southeast in 1799. It produced from small, yet relatively rich placer deposits. The famous California gold rush of 1848 placed the US as a major producer with 62.2 t (2 million oz) of output by 1850. More than 93.3 t (3 million oz) was mined by 1853, equivalent to 63% of world production. But the richest placers were soon depleted. By the end of the Civil War, annual production had declined to well below 62.2 t (2 million oz). The government then relaxed prices and the industry again began to recover. The 1870-80s saw the great mines of the California Mother Lode and Grass Valley brought into production. This was followed by development of Nevada's Comstock, which later became one of the world's largest producers. Discovery of gold at Cripple Creek in 1892, coupled with technological advances in the use of large dredges in the California placers, resulted in significant production increases. And, with the expansion of the Homestake mine at Lead, SD, in 1898, US output again surpassed the 93.3-t (3 million-oz) level. By 1905, produc¬tion climbed to 124.4 t (4 million oz) with the addition of the Alaskan deposits, new output at Goldfields, NV, and the introduction of the cyanidation process. During World War I, the government forced the shutdown of gold mines. By 1920, total production had dropped to little more than 62.2 t (2 million oz). Many mines remained closed until the Great Depression. This, combined with the devaluation of the US dollar in 1934, resulted in a gold price increase to about $1.13/g ($35 per oz). Then began the fourth gold rush. By 1937, output had again surpassed 124.4 t (4 million oz). This was due to an increase in primary production and new byproduct production from base metal operations. Unlike the previous period of growth, however, this period was short-lived. The imposition of Executive Order L-208 in 1942 once again forced the shutdown of most mines. At the end of World War II, cumulative US gold production had

Jan 12, 1984

By Edward H. Jr. Boyle, Paul R. Thomas

Introduction It is estimated that nearly 40% of all the gold ever mined in free world countries has been produced by South African operations. There is concern that this immense productive capacity will soon decline. Such a decline could reduce world gold supply and lessen the ability of market economy countries (MEC) to exert the major influence upon the world gold market. This paper addresses three general issues concerning South African gold production: • How much gold remains to be recovered from the demonstrated resources of the 44 evaluated South African mines; • How long can production at current levels continue; and • What will be its cost. Table 1 provides production data on the world's 10 largest producers for the years 1971, 1981, and 1983. As shown, South African gold production declined significantly from 1971 through 1981. As of 1981, annual South African gold production had dropped by more than 311 t (10 million oz) in 10 years. Despite this, its mines still produced 656 t (21 million oz) that year, about half the world total. From 1981 through 1983, this trend was reversed. Annual South African gold production increased by more than 21.8 t (700,000 oz). The trend reversal was also evident in the US, Canada, and Australia. This illustrates the general, inverse relationship between gold price and gold production. In South Africa especially, as gold prices increased substantially during the 1970s, the average grade of ore mined (pay limit) was lowered as new, lower grade areas and materials were exploited. Gold production declined in volume. But gold revenues increased, and the lives of the operations were extended. The 1981-83 period was one of declining (US dollar-based, average annual) gold prices that resulted in increasing South African production as average ore grades were raised. South Africa currently accounts for 50% of world production (Fig. 1). Figure 2 illustrates South Africa's contribution to total MEC production in 1971 and 1983. Although South Africa's relative share of production has declined, it still represents the single most important source of new gold supply. In 1983, it supplied more than 65% of total MEC production. South Africa currently produces more than twice as much gold as the Soviet Union (ranked second in world production), and 11 times more gold than the US (ranked fourth in world production). Barring major discoveries, South African gold production is expected to peak in 1987 and begin to decline again throughout the 1990s. The rate of decline is ex-

Jan 11, 1984

By Howard L. Hartman

Introduction The federal government's declining role in funding research has created a critical dollar gap for university departments of mining engineering. Industry, too, is affected by the drought. Research is lagging. Hardpressed universities are going to the private sector for funding. Mining companies should not shower universities with philanthropy, but a research partnership should be contracted on a pay-as-you-go basis. A model exists at The University of Alabama (albeit not in mining) that could be adopted by the mining industry. An equal partnership arrangement between a university and an industry for conducting research is proposed. The concept is not that a corporation sponsors and a university performs the research. Nor does it call for educational contributions or giveaways from industry. Rather, the corporation and the educational institution enter into a cooperative research endeavor, a full and equal partnership. Both parties contribute and both share the benefits. A key to the relationship is that it has a single objective: it must generate profits or reduce costs for the company. Working Model Recent literature is replete with examples of proposals for joint research endeavors, involving both contracts and grants, between industry and universities (Bronwell, 1971; Bugliarello, 1978; Branscomb, 1981; Sanford and Holland, 1982). They are all good proposals and offer something to both parties. They are, however, not widely supported. Few have received a favorable nod from the US mining industry. Though it may be logical, for example, to remake the American Mining Congress (or some new consortium) in the mold of umbrella-type industry organizations to fund cooperative research with mining institutions, such proposals have never flown. What model, then, will work? First, look for a model that has worked in industry in general. Second, seek to apply it to mining specifically. There is a model project that satisfies the first of those criteria. It is a project complicated by a third party, in addition to a corporation and a university. In January 1983, the "Factory of the Future Project" was initiated between The University of Alabama (UA) and General Motors Corp. (GM). The United Auto Workers (UAW) is a third party to the agreement. The factory was GM's Rochester Products Division manufacturing plant in Tuscaloosa, AL, also home of UA's main campus (Fig. 1). Saving a Plant The agreement came about at the initiative of GM and the UAW. Faced with having to close the plant because of excessive production costs, company and union officials proposed to the university that an applied research facility be established at the plant. The university would operate the laboratory, dedicated to $470,000 a year cost reductions for the company. The school would lease the 5.1 km2 (55,000 sq ft) space for $470,000 a year for three years. Any savings effected by the university's research effort would be credited toward to the rent. GM said the small factory, which made replacement carburetors

Jan 9, 1984

By L. Arbore

Introduction Mine operators are interested in energy conversation in two ways. With our finite sources of energy, we are concerned for future generations. In addition, as mine operators, we want to minimize energy costs. Moving material represents a substantial amount of the energy used in mining operations. Wheeled vehicles are used extensively to move materials. And they derive all their energy from fuel. Energy is also required to overcome the vehicle's inertia, and internal and external frictional forces. Included in the vehicle's frictional forces is its suspension. Tires are an important part of this suspension. What influence do tires have on the overall fuel consumption of the vehicle? Does tire construction affect this influence? As far back as 1896, it was apparent that tires were a factor in fuel consumption. A test was devised in France using a coal-fueled steam-driven auto. The test measured whether there was any fuel savings with the new pneumatic tires rather than of the then commonly used solid tires. The result was a 28% savings in water and a 29% savings in coal on pneumatic tires. Today, the pneumatic tire is accepted, but there are differences in present constructions. Tire Construction: Bias vs Radial There are basically two types of tire construction, bias and radial. Bias tires have been around for about 60 years. Radial tires are more recent. They were developed to improve a tire's ability to withstand higher speeds and loads, as well as to improve tire life and vehicle handling. Another advantage of the radial tire is its lower rolling resistance. This characteristic results in lower fuel use by a vehicle. This has been demonstrated with passenger cars and over-the-road trucks. It is now being demonstrated with earthmoving equipment. A basic description of both types of tire construction should now be reviewed: The casing of a bias-ply tire is made up of crisscrossed textile plies or layers. The cords of these plies run on a bias, from bead to bead. The cords of each ply run on an angle relative to the cords of the adjacent plies. As the tire rolls and deflects, the angle between the cords changes, like the blades on scissors (Fig. 1). The cords of one ply pull one way, and the adjacent ply pulls another, straining each other. This movement generates heat. Since the same layers of cords wrap around under the tread, they

Jan 9, 1984

By James J. Fallen

In this paper we are going to look at some things that may happen to the industrial minerals industry in the next decade. First, some concepts and definitions. What are industrial minerals? Not everyone agrees on an answer to this. So let's look at some of the opinions. Some say that industrial minerals are non-metallic minerals. As you well know, metallic minerals are used as a source material for metals. Copper, lead, and zinc are extracted from metallic minerals. But, some metallic minerals are also used for other reasons. Bauxite is used as a source of alumina and aluminum. It is also used as proppant in well drilling, as an abrasive, as a refractory material, and as a source of aluminum-based chemicals. So bauxite is both metallic and nonmetallic. There are other examples, too. Bastnasite is a source of rare earth metals and alloys but its concentrate is used in fluid cracking catalysts. Phosphate rock is an industrial mineral when used for fertilizer, but it is also the source of phosphorus. Ilmenite and rutile are sources for titanium dioxide pigments as well as titanium. So the nonmetallic designation is not adequate to define industrial minerals. Some say industrial minerals are called such because they are consumed in industry. How about your cat's litter box? Is that industry? Huge amounts of montmorillonite, attapulgite and other sorbtive minerals are pelletized and calcined to make animal litter. Doctors are trying to get people to cut down on their salt consumption. They are against people eating industrial minerals. When diamonds are a girl's best friend, they are not industrial minerals; when they are grinding and polishing media, they are. These examples show that industrial minerals are not exclusive to industry. Regardless, here is my list of industrial minerals: Abrasive Materials - Bentonite Antimony (Oxide) - Borates Asbestos - Calcium Carbonate Attapulgite - Diatomite Ball Clay - Dolomite Barite - Feldspar Bauxite (and Alumina) - Fire Clay Fluorspar - Pyrophyllite Fuller's Earth - Rare Earths Graphite - Salt Gypsum - Sand and Gravel Kaolin - Silica Sand Kyanite - Soda Ash Limestone - Sodium Sulfate Magnesite - Spodumene (Lithium) Magnetite - Sulfur Mica - Talc Nepheline Syenite - Titanium Dioxide Perlite - Vermiculite Phosphates - Wollastonite Potash - Zeolites Pumice There is some overlapping. Fuller's Earth takes in some attapulgite, bentonite, and other minerals, depending on the market. Some would like to distinguish industrial minerals by the market emphasis they receive compared to fuels, metallics, and precious metals. But even there, strict logic fails. Some industrial minerals are commodities. They are sold on a price basis against industry product specs, usually in large volumes. Phosphate rock, potash, sulfur, salt, soda ash, and other materials fit this category. Some are almost custom-designed for end-use and meet performance specs. These are sometimes called functional or specialty industrial minerals. Examples of these are ground calcium carbonate, water-washed kaolin, cosmetic grade talc, filtration grades of diatomite, perlite, and vermiculite. To determine prospects for the decade ahead, regardless of our

Jan 8, 1984