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The elite group of companies below represent the mining sector of Fortune magazine's June Directory listing the 500 U.S. industries that chalked up the largest dollar sales volume in 1966. The companies are listed according to their 1966 sales rank, which is given along with their 1965 rank for comparative purposes. All of the firms except two-Freeport Sulphur and Texas Gulf Sulphur-were in the Fortune Directory last year, and both these exceptions have been counted among the top 500 in former years. The one mining name that is missing from last year's list-Consolidation Coal-has actually jumped from number 217 to 4 by virtue of its merger with Continental Oil. As can be seen from the Industry Medians, the mining industry as a whole boosted its sales 17.8%, in 1966, making it the seventh largest gainer among the 22 industrial classifications covered in the Directory. By comparison, 1965 mining sales increased 10.2%, a gain which was surpassed by 13 other industries. In two other comparative tables, mining leads the field, topping the entire list in return on sales and in assets per employee.

Jan 8, 1967

By H. S. Ten Eyck

Fertilizer normally is spoken of as having three main components: nitrogen, phosphorus and pot- ash. Certainly, however sulfur must also be considered a basic component of fertilizers, even though in many instances it does not end up as a part of the end product. In addition, with heavier cropping and the resultant drain of plant foods from the soil, we have now reached a point where the minor elements necessary for plant growth have become a major factor in the fertilizer industry.

Jan 7, 1967

By Cornelius J. Dwyer

It is possible to hold a very optimistic view of the future of the U.S. coal industry, and there are those in the coal industry who generally choose to do so. For example, a major coal company stated recently in its annual report, "Coal's prospects appear brighter today than at any period in the past." In order to continue in this state of euphoria, it is only necessary to remind oneself of the following "facts":

Jan 7, 1967

By R. J. Robbins, D. L. Anderson

A tunnel boring machine has potential use in al- most any type of mining where the access shaft (or adit) is large enough or can be made large enough for its initial entry and where the orebody is of sufficient size to warrant its use. Some time will inevitably be lost in negotiating curves or making lateral moves and moving from level to level. Nevertheless, if the orebody is sufficiently large, advance scheduling can minimize the lost time encountered in such moves. Ideally, a mine will be planned for the use of these machines, thus eliminating access and transport problems. From the viewpoint of time involved, the rate of advance by boring as compared to conventional means is worthy of review. For instance, the Blanco Tunnel, one section of the Bureau of Reclamation's San Juan-Chama Project in southern Colorado, was bored in competent sedimentary rock with the following performance:

Jan 7, 1967

By R. P. Aikman, F. G. Miller, J. M. Podgursky

In response to the growing demand for low-sulfur coking coal for iron-making, the coal industry is continually striving to perfect methods for cleaning coal to acceptable ash and sulfur levels while maintaining maximum product yield. By present standards the industry has adequate processes for cleaning coarse coal, (i.e., +28 mesh) at almost any desired specific gravity. However, in the case of fine coal (i.e., -28 mesh) neither of the two existing processes-froth flotation and hydrocycloning-in its present state of development yields products that are comparable in ash and/or sulfur content to products normally obtained from coarse coal processes. The work outlined in this article is part of a larger study directed toward maximum exploitation of froth flotation for fine coal processing. The concepts and data presented are now serving as a basis for designing fine-coal circuits in which improved efficiency is obtained by optimum use of froth flotation with other fine-coal processing methods.

Jan 7, 1967

By Arnold H. Kackman

At the Kaiser Cement and Gypsum plant near San Jose, Calif., one rod-ball mill has taken over the entire raw grinding function for the largest single cement operation in the West. Installed as part of a major overhaul performed on the plant by Kaiser Engineers, the new mill does the work of seven previous mills in feeding the plant's six kilns and keeping pace with its annual capacity of 8.5 million bbl of cement. Installation of the mill, which is the largest in the world, was started in December of 1966 and completed in April of 1967. The over-all modernization program surrounding the new mill has included the modification of existing crushing facilities; the building of new raw materials handling and blending facilities, new raw milling facilities, and new slurry handling facilities; and the installation of a digital-analog control system.

Jan 7, 1967

By John V. Beall

Given: One large, but dated open-pit copper mine and processing plants, down about one third in production capacity in decade because of declining ore grade. Solve for: Restoration of former peak capacity without further losses during period of reconstruction. That is the problem that Kennecott's Utah Cop- per Division began solving in 1963. Most of the work went to a task force of engineers, several of whom were plucked out of line jobs and assigned to the so-called "Expansion Project" for the duration. There was no doubt from the beginning that effective cooperation between Expansion Project engineers and operators was critical to success, and personnel was chosen accordingly. This foresight paid off. The Expansion Project is all but complete, and the Utah Copper Division is returning to its rated capacity of 300,000 tons per year of copper metal.

Jan 6, 1967

By N. E. Norman, R. Stier

The mining industry is continually seeking out new and better underground mining techniques. One of the most recent-also, perhaps, the most significant-of the new concepts in underground mining is the use of mechanical rock-boring machines. And one of the problems that concerns us all in this matter is the cost of mechanical rock tunneling. To help answer the oft-quoted question "What will it cost me?" the following pages deal with the operating costs of so-called "medium to medium hard rock" boring machines-i.e., those designed to meet the drilling requirements in 8000 psi to 25,000 psi rock. A few machines are capable of drilling hard rock above 25,000 psi, but the economics of mechanical tunneling in rock that hard is limited at the present time. [ ] For mechanical rock tunneling, there are five main cost factors influencing the expense: Capital Investment, Cutters, Labor, Power Requirements, and Maintenance. These factors give us a good basic picture of the cost of excavation, although muck handling, erecting supports, and other costs directly related to conventional tunneling and mechanical boring enter into the final picture.

Jan 6, 1967

By R. L. Tobie, E. K. Staley

Because of high production demands at San Manuel mine (approximately 40,000 tpd) and the relatively narrow grade range of the orebody, no attempt is made by the company to mine selectively. The caving sequence is laid out to meet the production demands, and proceeds in a manner to induce the least amount of weight on extraction openings. Once an area is undercut, draw control procedures are applied uniformly until the area has been mined to depletion. The orebody, located 50 miles northeast of Tucsoil, Ariz., is a low-grade deposit of chalcopyrite disseminated throughout a structurally weak, highly fractured, strongly altered granitic host rock over- lain by several hundred feet of relatively competent andesitic conglomerate. When undercut, the granite ore caves readily into fragments which usually pass through the grizzly without either excessive breaking or an undue amount of secondary blasting.

Jan 6, 1967

By H. R. Spedden

As part of its broad program of educational assistance-including grants, fellowships, and scholarships -Kennecott Copper Corp. offers summer employment opportunities for college students at each of its operations. Originally, summer job programs were intended primarily to help students defray their educational expenses. But as the nation's economy expanded with increased production and a growing demand for well-trained engineers, summer employment became an important means to help qualify future professionals and fill industry's need for them. Both the employer and the student thus derive benefits from such training.

Jan 6, 1967

By Howard W. Jacky

At Weed Heights, Nev., precipitation plays a major role in the plant operation. Almost two-thirds of the present copper production is leach-precipitation plant copper. The entire plant complex processes about 135,000 tons of low grade copper ore per week. Of this tonnage, 49,000 tons of about 0.78% sulfide ore are treated in the concentrator. This is handled in the conventional manner of crushing, grinding, and concentration of the copper sulfide by flotation.

Jan 6, 1967

By A. T. Yu

From the very beginning when an ore body is blocked out, till the last ton of mineable ore is shipped to the smelter, consciously or not, a mining engineer is incessantly wrestling with the materials- handling problem. In the mine and the plants, over the haulage routes, and at the shipping terminals, his fundamental responsibility is to see that each ton of ore and/or waste is extracted, processed and moved easily and economically. Success or failure of many a mining enterprise often rests principally with the judicious and effective application of existant materials-handling technique or its innovation. Time and again, key innovations in practicing techniques have turned a losing venture into a successful and profitable one.

Jan 6, 1967

By Nicklaus Heil, L. D. Clark

As political tensions in African and Asian mineral producing regions increase, the orientation of Latin America's economic development assumes importance not only in the U.S. hemispheric policy but also in our mineral-based economy. Latin America as a mineral supply source has been confronted with regional, political and economic problems which may, at best, have limited further investment and, at worst, have suggested possible repudiation of existing investments. Historically, the mining industry has provided a basis for the national economies of Bolivia, Chile and Peru, and recently the governments of these countries have sought to force increased development of the industry through new and somewhat revolutionary mineral legislation. The extent to which the mineral industries are intended to finance economic development is uncertain and the influence of this legislation on economic freedom and incentive for foreign and domestic investment is a matter for some thought. Two facts are outstanding: first, mining, at present, provides approximately 80% of the foreign exchange in Chile and Bolivia and 42% of that in Peru and, second, existing tax revenues are insufficient to finance a developing economy.

Jan 5, 1967

By M. J. Coolbaugh

Mining of potash more than 3000 ft beneath the water-bearing sediments in Saskatchewan presented the unique challenge of designing stable mine workings and assuring protection from overhead water in a material that was believed to flow plastically, but whose behavior as a plastic material was not sufficiently known. Under the stress conditions ordinarily encountered in mining most rocks behave as elastic materials; that is, they compress slightly under pressure, and rebound when the pressure is released. Salt and potash, however, are different. Even under the relatively low pressures encountered at shallow depths, these materials become slightly plastic and yield to stress by flowing.* The plastic properties become more pronounced at greater depth and pressure, and the question arises as to whether or not the plastic flow will be rapid enough and exert enough pressure to destroy underground structures or interrupt the mining process.

Jan 5, 1967

On August 22, 1966, just 20 months after writing sales agreements with Japanese steel mills, Hamersley Iron Pty Ltd made its first contractual shipment of 52,000 tons to Yawata Iron and Steel Co Ltd. As world news, the event was not spectacular. But to mining men it represented an astonishing achievement. Twenty months of feverish effort and the expenditure of more than $100 million had created a large open-pit iron ore mine, a crushing plant, storage and load-out facilities for sized ore, and a supporting township at Mt Tom Price; a 182-mile standard gauge railway; and port and loading facilities for a nominal loading capacity of 6000 tph as well as a port town, Dampier, on King Bay. The project was executed in the sparsely inhabited, arid, dissected-plateau country of the Hamersley Range in the northwest sector of Western Australia. Hamersley, 60% owned by Conzinc RioTinto of Australia Pty Ltd and 40% by Kaiser Steel Corp, holds sale contracts for ore and pellets valued at $770 million. The main contracts are with the Japanese, who are to be supplied with 65.5 million tons of ore during the 16 years from August 1966 to August 1982 and 18 million tons of pellets over a 10-yr period beginning in early 1968. Of lesser importance at this time, but presaging trends, are contracts for a total of nearly 1.5 million tons to be shipped to England and Western Europe during the years 1966-68. A pellet plant with a capacity of 2 million tpy is now under construction at Dampier and is to be on stream early next year. Another interesting project for which the plans are set, is a desalination plant for sea water to supply industrial requirements and potable water for the town of Dampier.

Jan 5, 1967

By B. Trenary, D. D. McNaughton, C. D. Baer

High capacity off-highway haulage trucks equipped with electric wheel drives have been available for commercial applications since 1963 and, although still interesting to study, cannot be considered as a "new" type of equipment any longer. However, the electric wheel drive components which played a key role in the development of these trucks has indirectly led to another new trucking development-the gas turbine engine for off -highway vehicles. Although most of the production models of the electric-wheel haulage trucks are equipped with 700 hp engines (the largest production engine commonly available), the electric drive components of the motorized wheel were designed to transmit more than 700 hp. To utilize this added potential, 1000-hp class diesel engines are in the process of being developed, but progress has been much slower than expected. The delay has caused some engineering thoughts to concentrate on the adaptation of the 1000-hp gas turbine engines, originally designed for aircraft applications, for use in haulage trucks. The question in most minds centered around the ability of such an engine to withstand the tough usage expected of it in an open pit.

Jan 5, 1967

By H. Evans, L. A. Hunt

In the pellet-producing industry it is sometimes claimed that "The pellets are made in the concentrator," or that "The key to good pellets is in the balling operation." However, one claim is generally agreed on: If you can put in, on, and through the indurating furnace a good green ball of Proper size and adequate strength to withstand the handling, load, dehydration, and thermal shock until it is properly heat-hardened, you will have the pellet product you desire-that is, a "competent" green ball. The strength requirements that enable a competent green ball to withstand the environment of the indurating furnace are usually less restrictive than those for transporting the green ball from its source of production to the furnace. Experience has shown that different types of material may have different balling characteristics which may impose limitations on the quality of the green ball that can easily be produced under normal conditions. Therefore, if a specific material will produce a green ball that meets the physical requirements for competency in the furnace, but not for handling or transportation, various practices must be instituted to overcome this deficiency. In other words, if a normal handling system is too rigorous for the green balls that can be produced under standard conditions, then "handling with care" should be tried.

Jan 5, 1967

By George H. K. Schenck, Peter G. Donald

There is an accelerating acceptance of change by management of cement companies. Diversity of response is noticeable in efforts across the country to reverse the downward trend in profits that brought margins in 1966 to the lowest point in 20 years. New concepts are emerging among managers as they seek to increase the efficiency in use of the basic corporate resources of men, capital and technology. The shift towards computerized control of cement manufacturing is making new gains as is diversification of cement companies into allied fields such as production and sale of natural and light- weight aggregates, crushed stone and concrete products. Increased interest in special products such as white cement and further moves overseas are also significant. Perhaps the most dramatic event of recent years occurred in Washington at hearings before the Federal Trade Commission where cement producers split on whether there should be FTC guidelines that would prevent ownership of ready-mixed concrete producers by cement companies.

Jan 4, 1967

By A. J. Carlson, G. M. Marincel, M. L. Hovland, J. H. Healy

Research personnel of Erie Mining Co., a pioneer taconite mining firm on the Mesabi Range, have invented a new method to make an effective 325 mesh separation at high tonnage rates over stationary screens. The company regards this development as historically significant in that it represents the first successful method to commercially screen large tonnages of ore at fine sizes. Erie, which is now completing an expansion program at its plant site near Hoyt Lakes, Minn., has incorporated this screening method as part of that expansion. When completed, the concentration plant will produce 10.3 million tons of iron concentrate, all of which will have been efficiently screened at 325 mesh.

Jan 4, 1967

By John A. Wolfe

The brightest spot in the mineral economy of the Philippines is the rapid development of reserves and production of copper. If economic conditions remain favorable and the political climate is encouraging, production of this metal should increase at a rate of 25% per year for several years, long enough to rank this country as one of the major copper producers of the world. In 1965 the copper content of the Philippine concentrates was approximately 60,000 tons. It should total about 80,000 tons in 1966. A major part of the increase will come from the rich Lepanto mine located in Mountain Province, North Central Luzon. Daily production of ore increased from 1200 to 2000 tons at the end of 1965. The ore, consisting of enargite and luzonite, averages nearly 3% copper and 0.12 oz. of gold per ton. It is an under- ground operation with a cutoff grade of 2%. The ore is associated with extensive silicification under a volcanic cap rock. Further expansion to increase ore production to 2600 tpd is under way.

Jan 4, 1967