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By Paul Chamberlin

Although performing a heap leach test is inherently simple, a lot of information beyond extraction, leach time, and reagent consumption can be obtained from a well designed test program. The following is a list of information to look for and acquire when performing column tests and field heap leach tests.

Jan 1, 1998

By O. L. Papendorf

For purposes of simplification, a case is presented for an engineer to discount cash flows in real rather than in current terms when giving evidence in a court of law. The difference between the two methods is highlighted, and a recommendation is made in the case where differential rates apply.

Jan 1, 1981

By S R. "Bob" Pilshaw

Productivity is the popular "buzz" word that catches the attention of most managers when it is featured in the more popular mining and construction magazines. Engineering Task Forces and teams are formed to take advantage of productivity opportunities in almost all phases of an operation except the drilling and blasting area.

Jan 1, 1988

By Jack C. Leader

The success of a blast using ANFO in wet boreholes is dependent on the quality of the bag the ANFO is packaged in. When a shot fails the dragline may stop and expensive redrilling may be necessary. The total loss to the mining operation can be hundreds-of-thousands-of-dollars.

Jan 1, 1981

It is suggested that if adequate knowledge is available about classifiers in closed grinding circuits, these units may be used as on-stream size analysers when equipped with suitable sensing devices. Research work which is at present in progress to enable a hydrocyclone to be used for this purpose is discussed.

Jan 1, 1967

An airlift pump is fitted to the screw conveyor of a decanter type centrifuge in order to pump out soft cakes which are difficult to discharge from a standard decanter. The new patented2 design improves separation performance and allows more stable operation, particularly when operating the decanter as a thickener.

Jan 1, 1989

By Jeff Senules, Oana Meins, Catherine Aimone-Martin, Scott Lanker, Brent Meins

Global wall strains from 4 to 77 micro-strains were measured at three structures adjacent to a highly-confined Florida quarry blast when PPV amplitudes ranged up to 6.05 in/s. Increasing the peak zero-crossing frequencies with carefully control delay timing helped to lower ground displacements affecting wall strains.

Feb 1, 2020

By Andrzej Wala, Henry P. Cole, Perry David Passaro

Cognitive representations and misconceptions of flow through circuits is an area which has received little attention from science educators, cognitive psychologists, or accident investigators. Misconceptions are also called Aristotelian thinking. They involve a person using primitive unscientific ways of reasoning to make decisions about events (Piaget, 1929; Nussbaum & Novick, 1982; McCloskey, 1983). The use of such primitive concepts leads to errors in reasoning about scientific and technical problems. The existence of misconceptions is well documented among children, adolescents, and adults involved in learning science concepts (Piaget, 1929; Cole & Raven, 1969; Clement, 1982; Mistrell, 1982; McDermott, 1984; Richardson, 1987). Concepts of flow through circuits are important because miners' conceptual errors about these aspects may be, in part, responsible for two fatal mine disasters. On at least two separate occasions, methane gas explosions occurred in underground mines when separate ventilation systems were connected (Elam, Fuller, Carter, Cavanaugh, Fesak & Painter, 1983; Fesak & Cavanaugh, 1984). A review of these disasters indicates that conceptual errors made by miners may have resulted in the accidents (Cole, Wala, Haley, & Vaught, 1987). In this study, co-author Andrzej Wala, stated that his research had "identified conceptual errors that may have caused the miners in these disasters to make fatal mistakes" (Cole et al. 1987), p. 167. Further exploration of these conceptual errors by Wala has led to the hypothesis that misconceptions of basic aspects of flow distribution changes in mine ventilation circuits, are at least, in part, responsible for some mine disasters caused by errors in ventilation systems (Wala & Cole, 1987). Why should these conceptual errors occur? Ausubel (1963) suggested that students come to a new area of study with their own conceptions or preconceptions about how a process operates. Furthermore, these preconceptions may be in conflict with the empirical data from the discipline. In such cases, learning becomes a process in which new concepts must displace or be re-molded from stable concepts that the student has constructed over many years (Clement, 1982). Given the existing research with misconceptions and the work of Wala and Cole (1987), it was hypothesized that experienced miners; either working miners, students of mining engineering, or professional mining engineers, harbored misconceptions about the formal or conceptual aspects of mine ventilation circuits. The misconceptions hypothesized to exist involved flow distribution changes in complex mine ventilation circuits; specifically, how does flow distribution change when a ventilation circuit pathway is altered? Given this information, the following research questions were proposed. Research Questions 1. Do experienced miners and mining engineers harbor misconceptions about mine ventilation systems? This question was addressed by: A. The administration of the Cutthrough Ventilation Arrangements (CVA) exercise that measures subjects' performance level when making decisions about major ventilation changes when connecting two mine sections;

Jan 1, 1989

By M. Visnjic

Open Pit Mine Production scheduling under commodity price uncertainty suffers from an exponentially increasing problem size as simulations and real options flexibility are used to generate and evaluate multiple production schedules. Robustness evaluation techniques attempt to evaluate a production schedule that is generated on a single set of economic parameters against several varying prices and sources of uncertainty. This approach is invalid as the corresponding optimal LOM mine plan will change for each set of evaluation parameters. Using commodity market futures and treasury bonds as production schedule economic input parameters provides fully price and time-value-of-money risked scheduling parameters that maintain a deterministic problem size. This paper will provide comparative analysis of project NPV’s coming from traditional price uncertainty evaluation based on a single fixed LOM mine plan using varying prices versus evaluation based on varying LOM plans that are both generated and evaluated using varying prices. When cross evaluating constant price mine plans against simulations, the upside potential and downside risk of a project are significantly misrepresented. INTRODUCTION The life of mine (LOM) production scheduling problem seeks to answer the question of from where and when to extract a given block within the ultimate pit limit as well as where and when to process it. Solving this problem takes into account the constraints of extracting any particular block while seeking to maximize the net present value (NPV) of the mineral asset as a whole. A direct driver of the value of a block, and there for the entire asset, is the market price of the commodity in question. Complications arise when an optimal production schedule is attempted to be solved under price uncertainty. Many solution methodologies have been proposed in an attempt to optimize under this criterion, yet there are three salient aspects that are overlooked during this process. They are: • Generating a single production schedule and evaluating it against many simulated price paths. • Failing to understand the mechanism describing particular commodity price behavior • Inappropriate risk adjustment In an effort to address these aspects of production scheduling under commodity price uncertainty, we propose a methodology to define the economic parameters as input that is applicable to most if not all production scheduling approaches. This methodology will not only simplify the production scheduling process in terms of establishing block value but utilizes the risk adjustment of real options valuation to avoid the arbitrary blanket risk adjustment of traditional discounted cash flow valuation. Our findings conclude that attempting to optimize around individual price paths is futile and using a market risk adjusted single price forecast provides a justified economic basis for production scheduling while maintaining the same problem size as a deterministic production scheduling problem.

Jan 1, 2019

By Stephen C. Tadolini, Anand Bhagwat

"Intrinsic supports installed in mines with limited seam or mining heights have always proven to be difficult when the required support length is longer. To date, three solutions have been used to ensure that the correct length bolt is installed to achieve the required anchorage or to maintain immediate roof material: combination bolts, milled-notch bolts, and hot-notch bolts. The combination bolts use threaded sections and couples, which can be screwed together to form the required length. The primary bolt of choice, to minimize costs and achieve the desired support, has been milled- or hot-notch rebar bolts. These notches can be placed at strategic (required) locations along the bolt axis, so the bolt can be successfully bent and straightened during the installation process. However, these notches can reduce the strength of the bolting system; special reductions are detailed in ASTM F432-13 (2013). Technical advances in steel rolling and forged heading processes have led to the development of a deformed rebar bolt termed, the BORE bolt, which stands for Bendable Oval REbar. The BORE bolt can be bent at any location and straightened during the bolt installation cycle. This support exceeds the minimum designed capacities described in ASTM F432-13 and meets the yield and tensile strength requirements of a full diameter no. 6 rebar bolt. The profile and shape also reduces the resin annulus during the installation process to enhance mixing and shreds the cartridge film to help eliminate glove fingering.INTRODUCTIONThe height or depth of competent strata material, in the immediate mine roof, can be greater than the developed mine openings heights. This is especially true in coal mine openings where 50% of the minable seams in the US are less than 50 inches (132 cm). When this scenario occurs, it can be difficult to insert steel bolts in a solid single length. Figure 1 illustrates what difficulties can be experienced when a roof bolter operator is working and supporting a thin seam coal mine. There are three viable options currently available. Lengths of the bolt can be threaded and a steel coupler can be used between the sections to reach the required depth of anchorage. These systems, called “coupled bolts,” usually require a larger diameter hole to facilitate the larger coupler diameter and can be anchored with an expansion shell, resin, or a combination of both. To ensure that the coupler will develop the tensile capacity of the bolting system, required by ASTM 432-13 Standard Specifications for Roof and Rock Bolts and Accessories (2013), the threaded bars should be completely rotated and engaged into the coupler. Premature failures can occur when the threads “strip out” if not inserted completely."

Jan 1, 2018

By V. G. Prikhodko, G. I. Sukhinin, I. V. Yarygin, A. V. Fedoseev, S. A. Novopashin

"The first experiments on the vacuum drying of spherical clay sample are presented and the theoretical model of the process is considered. The model is based on the solution of the heat and the moisture transfer equations with the effective thermal conductivity and water diffusion coefficients for wet porous clay-like medium. The time and radial dependence of the temperature and the moisture were calculated for different initial conditions. The results obtained for the time dependence of the moisture content are in good agreement with the experimental results obtained in the initial period, when all the moisture in the sample did not freeze to form an ice crust. INTRODUCTION Capillary-porous materials very often occur in nature and in industry. A porous medium is a solid matrix with voids, or pores, which are continuously connected. These pores are usually filled with fluids or moisture, water vapor and air that can pass through the medium because the voids are interconnected. The void fraction in the solid matrix is referred to as the porosity. Porosity or void fraction is a measure of the void (i.e. ""empty"") spaces in a material, and is a fraction of the volume of voids over the total volume. The moisture content in porous media determines the properties of the porous body, its mechanical and thermo-physical properties, such as density, plasticity, viscoelasticity, swelling, cracking, and so on. Complex processes of heat and mass transfer occur in porous bodies when they are heated or cooled, during drying or freezing (Luikov,1966). The course of these processes depends essentially on the physical-chemical composition of the solid matrix of the porous body, on its fractal dimension, porosity and morphology. The clay and clay minerals are the most important porous materials in the history of the mankind (Mukherjee, 2013). Clay is a very fine grained, unconsolidated rock matter, which is plastic when wet, but becomes hard and stony when heated. It has its origin in natural processes, mostly complex weathering, transported and deposited by sedimentation within geological periods. Clay is composed of silica {SiO2), Alumina (Al2O3) and water (H2O) plus appreciable concentrations of oxides of iron, alkali and alkaline earth, and contains groups of crystalline substances such as quartz, feldspar, and mica. Building materials, bricks, and tiles, pottery, porcelain and faience are made from clay. Clay is used in the food and medical industry, and, not least, in the mining industry as a carrier containing aluminum, silicon and other valuable elements, as well as metals (copper, gold) as constituents, contained in the pores in the form of micro- and nano-particles or grains."

Jan 1, 2018

By Frank Firmstone

In April, 1873, No. 2 furnace at the Glendon Iron Works being out of blast, it was decided to alter it from an open to a closed top. The three side flues, through which a part of the gas was formerly taken off, were 15 feet below the top, and as, for various reasons, it was not convenient to cut new flues through the brickwork at the top, as is commonly done with closed-top furnaces, a modification of Coingt's charger was employed. This apparatus, as figured by De Vathaire,* consists of a cup or hopper, like that used with the cup and cone, and a central pipe for taking off the gas, which descends some distance into the furnace, and has a projection around it forming a seat for a ring of a triangular cross-section, which closes the opening between the cup and the central gas-pipe. The charge is put into the cup, and by lowering the ring, is thrown into the furnace, a part going outside of the ring toward the walls, and a part through the inside toward the gas-pipe. In this form the apparatus was not applicable, for: 1st. With a gas-pipe three feet in diameter, in a top eight feet in diameter, the openings left by lowering the ring would not be large enough to let lump coal pass through. 2d. For the charger to shut tight, the ring must bear equally against the projection made for it on the gas-pipe, and against the edge of the cup. This would not be difficult to effect when the apparatus is first put up, but a comparatively small change in the relative position of the parts, such as is almost certain to occur from expansion, would cause the ring to touch the pipe or the cup, whichever happened to be the lower, first, and leave a leak between it (the ring) and the other. In the plan adopted (Figs. 5 and 6, Plate I), the central opening in the ring is closed by the bottom of the gas-pipe, whereby more room is left for the passage of the stock when the charger is open, than if the pipe descended into the furnace; and the pipe, instead of being rigidly supported, rests on the ring, when the charger is closed, and follows it for two or three inches as it opens, until stopped by the counter-balance lever C. When the ring is raised to close the furnace top, it comes in contact first with the bottom edge of the gas-pipe, then both are raised together, until stopped by the ring touching the edge of the cup. In this way a good joint is made at both places.

By Frank Firmstone

IN April, 1873, No. 2 furnace at the Glendon Iron Works being out of blast, it was decided to alter it from an open to a closed top. The three side flues, through which a part of the gas was formerly taken off, were 15 feet below the top, and as, for various reasons, it was not convenient to cut new flues through the brickwork at the top, as is commonly done with closed-top furnaces, a modification of Coingt's charger was employed. This apparatus, as figured by De Vathaire,* consists of a cup or hopper, like that used with the cup and cone, and a central pipe for taking off the gas, which descends some distance into the furnace, and has a projection around it forming a seat for a ring of a triangular cross-section, which closes the opening between the cup and the central gas-pipe. The charge is put into the cup, and by lowering the ring, is thrown into the furnace, a part going outside of the ring toward the walls, and a part through the inside toward the gas-pipe. In this form the apparatus was not applicable, for: 1st. With a gas-pipe three feet in diameter, in a top eight feet in diameter, the openings left by lowering the ring would not be large enough to let lump coal pass through. 2d. For the charger to shut tight, the ring must bear equally against the projection made for it on the gas-pipe, and against the edge of the cup. This would not be difficult to effect when the apparatus is first put up, but a comparatively small change in the relative position of the parts, such as is almost certain to occur from expansion, would cause the ring to touch the pipe or the cup, whichever happened to be the lower, first, and leave a leak between it (the ring) and the other. In the plan adopted (Fig's. 5 and 6, Plate I), the central opening in the ring is closed by the bottom of the gas-pipe, whereby more room is left for the passage of the stock when the charger is open, than if the pipe descended into the furnace; and the pipe, instead of being rigidly supported, rests on the ring, when the charger is closed, and follows it for two or three inches as it opens, until stopped by the counter-balance lever C. When the ring is raised to close the furnace top, it comes in contact first with the bottom edge of the gas-pipe, then both are raised to¬gether, until stopped by the ring touching the edge of the cup. In this way a good joint is made at both places. * Etudes our lea Haut Fourneaux, page 108.

Jan 1, 1874

By F. A. Orth

COAL-mine opera- tors face a difficul- ty in notifying men when there is no work. If the miners come to the shaft when there is no work, they must be paid, by agreement, two hours' wages. This involves a considerable loss since it is not uncommon to em- ploy two or three hun- dred men or more at a single shaft. Many mines have solved the problem by using an electric siren. This carries the "no work" message to all of the miners within a ra- dius of from one and one- half to two miles, so they do not trudge uselessly to work and the operator saves the two-hours wage payment. At the Valley Smokeless Coal Co., Johns- town, Pa., such a siren serves as a start and quit- work signal for three mines which previously re¬ quired three individual signal systems. Similar units are used by the Old Ben Coal Corp. mines, Dolly's Smokeless Coal Co., Rhonda Coal Co., Bird Coal Co., and hundreds of others. Many other applications of the electric siren have been found in mines. They are used on underground locomotives, to awaken miners in the morning, to tell them it is time to come to work, to sound the start and quit-work signal, and to warn of fire or accident. The sirens are most generally used to give a start and quit-work signal, fire, and general emergency alarms as well as no-work signals. They require 3 and 5 hp. to operate. The smaller unit has a sound radius of from three-quarters to one mile, while the larger siren can be heard over a distance of from one and one-half to two miles. The 5-hp. unit has been heard for as great a distance as 14 miles, and 10 miles is not at all uncommon. One of the outstanding features of the 3 and 5-hp. units, which is uncommon in the smaller sirens is that they may be adapted to sound code signals. When used to sound a fire or general emergency alarm the siren may tell at the same time where the fire or acci-dent is. When a remote control device is used with a siren it is possible to operate the siren from any number of distant points. Any number of "start" buttons may be placed at various places. By using one "start and stop" button where the remote control is mounted, and one or more "start" buttons at various places about the plant, it is necessary to run only two wires to the various "start" buttons. If "start" and "stop" buttons are used altogether, then three wires must be run.

Jan 11, 1927

By I. Fatt

Networks of resistors are used as analog computers to obtain relative permeability and resistivity index curves for networks of tubes. These curves have all of the characteristics of those obtained on porous media and, therefore demonstrate the validity of the network of tubes model. INTRODUCTION In paper I' of this series the network model was shown to give information on the structure of porous media that could not be obtained from the bundle of tubes model. The agreement between the capillary pressure characteristics of a network of tubes and those of typical porous media does not prove the validity of the network made. The bundle of tubes model, although it gives less information, also shows this agreement. In this paper the flow properties of a network of tubes are shown to be in agreement with flow properties of porous media. The flow properties of the bundle of tubes model are not in adequate agreement with those of porous media. The dynamic properties of porous media, such as fluid permeability and electrical conductivity, have been found experimentally to be more sensitive functions of structure and pore size distribution than are the static properties such as porosity and capillary pressure characteristics. The network model can, therefore, be best tested by comparing the dynamic properties of a network of tubes with the observed properties of porous media. All static and dynamic properties of a completely valid model must agree with the observed properties. The most commonly measured sensitive dynamic properties are the relative fluid permeability and the relative electrical resistivity. Experimental measurements of these dynamic properties on sandstone, sintered glass, sintered alumina, and soil are reported in the petroleum and soil science literature. These properties were chosen, therefore, for the test of the network model. In the network model, relative permeability is the permeability of the network when some of the tubes are not conducting fluid, relative to the permeability when all tubes are conducting fluid. Similarly, the relative resistivity is the electrical resistivity of the network of tubes when some of the tubes are filled with a nonconductor. relative to the resistivity when all tubes are filled with the electrical conducting fluid. Single Size Tube Network The simplest porous medium is one in which all pores are of the same size. Such media can be approached by packing beds or columns of uniform size particles of sand, glass, or metal. The model of such medium in this study is a network of single size tubes. The network form, the ß factor, is usually not known for real porous media. If the validity of the network model can be established, then the study of the flow properties

Jan 1, 1957

By Charles H. Morgan

THE process of wire drawing depends upon the property which certain metals possess, termed ductility, 'which is defined in Brande's Dictionary of Science as a property in consequence of which metals may be drawn out at length without interrupting the continuity of their constituent parts. As defined by M. Tresca, it is the property of flowing when subjected to pressure, and is termed by him the "flow of solids," in his paper, read before the Academy of Sciences in Paris, November, 1865 * In the simple language of the wire shop, it is that quality in certain metals that permit, them to be drawn (or stretched) out through a tapering, hole in a metal block or die, the die being more dense and harder than the metal to be reduced. It is a fact well known to those skilled in the art, that to succeed in drawing iron or steel wire, it is of the utmost importance to have thorough lubrication, as a lack of it would caws abrasion of the wire, or of the walls of the tapering hole in the die or plate, and quickly put an end to the operation. In drawing coarse or large sizes of wire, say 2/10 inch diameter, the pressure upon the sides of the tapering hole, where the wire comes in contact with the die, is so great that an ordinary lubricant is squeezed out when the usual reductions in size are made, and abrasion takes place. In order to meet this difficulty, and secure proper lubrication, it has been' a common practice for years to apply a paste made of rye or wheaten flour, or lime, to the surface of the wire to be drawn, and when the paste is dry, to smear the wire with tallow or grease; the wire is then ready to be drawn, the dried paste serving to prevent the lubricant from being pressed out in the. process. Some years since, when Bessemer metal came largely into use as material for wire, "the writer found that its drawing required so much more power than iron wire, that he was led to institute a series of trials to ascertain the difference in power required. It was found that Bessemer wire required from 100 to 200 per cent. more power to make the same reduction in sizes than soft iron wire, the difference depending upon the amount of carbon and other chemical constitu- * Interesting experiments in the flow of metals have been made, by Messrs. Hoopes Townsend, of Philadelphia, in cold-punching iron, published and illustrated in the Journal of the Franklin Institute, of March, 1878, by Mr. David Townsend.

Jan 1, 1881

Manganese Resources in Relation to Domestic Consumption Discussion of paper by JOHN V. W. REYNDERS, presented at the Cleveland Meeting and issued, as Pamphlet No. 1656-C, with MINING AND METALLURGY, May, 1927. A. G. BETTS, Kinderhook, N. Y. (written discussion).-When a business concern hires an office boy, it takes on the first bright-appearing young chap to apply and pays him the prevailing rate of wages. One of the chief tasks the .office boy is supposed to be competent to perform, is to clean out the office. The manager of the business is highly competent in many lines, but for some reason lacks the ability to keep the office clean. To the steel man, it would seem that manganese is the office boy, and it is purchased just as found and offered to the purchasing agent. The steel mill is competent to perform many functions on a grand scale and with wonderful efficiency, but it is unable to make real steel. It is the function of the office boy, manganese, to do this. It is open to serious doubt if steel mill operators have ever taken seriously the metallurgy of the preparation of crude manganese. It has merely been found that some usable crude manganese may be obtained by running certain manganese ores through an iron furnace when not busy on anything else, or remote from iron ore, or with a lining that is about gone. It is, however, an entirely unwarranted assumption that the metallurgy of manganese has been worked out, or that the supplies of usable raw ore must be limited to materials of some specified analysis. There was a time when ores of copper, lead and zinc, for example, had to be rich and of specified analysis, to be usable, but the commercial raw materials of today bear little resemblance to such ores of the past. The discussions of manganese that I have seen are based on the assumption that the metallurgy of manganese is fully established and that the only usable manganese raw materials are of the kind used today. These discussions contain another error, not so much of statement, but of implication-that the tonnages of manganese materials in the United States are so much in this state and so much in that. When it requires a period of years and the expenditure of millions of dollars for a competent mining company to explore thoroughly a few acres of mining ground, is it not absurd to say that there are so many hundred tons of manganese ore in a certain state? This fact is not apt to be known fully in 10,000, years. I do not charge the mining engineers. who are on record, of making misstatements, because they merely say that so much

Jan 5, 1927

By R. R. Hoffman

The name L'brush,l as applied to the parts to be briefly considered in this paper, is not clearly descriptive of the design and function of those parts when the usual definition of the word is applied. In a general way, the brushes to be considered here are the parts employed on certain types of electrical equipment to facilitate the transfer of electrical current between a rotating or moving element and a stationary element. These machines are generally motors and generators of both the slip-ring and commutator types, rotary converters, battery charges, etc. Parts that serve a similar purpose on relatively slow or intermittently moving devices such as rheostats, switches, controllers, etc., are generally referred to as contacts. A few special applications involve the use of current-carrying washers, rollers, bushings, etc. As may be inferred, therefore, the design of these brushes and allied parts is dictated by both electrical and mechanical considerations. In most cases these factors are closely interrelated, and unfortunately many of them are not subject to exact scientific or mathematical analysis. Special Advantages Since brushes operating on direct-current machines must carry the load current, resist destructive action from voltage induced in imperfectly compensated armature coils, and in addition act as a bearing material, maintaining intimate contact with the commutator at peripheral speed, which may be as high as 70 miles per hour it is difficult to obtain in one brush the ideal properties necessary for perfect functioning under all operating conditions. The engineer-designer, therefore, when selecting a brush for a specific application, must choose a grade that possesses the characteristics most adequate to meet the conditions involved. In many cases a characteristic that makes a specific grade of brush the ideal selection for one type of machine may be of secondary importance to some other property when the brush is applied on another machine. Frequently different grades of brushes must be applied to the same type of machines when they operate under different or unusual atmospheric conditions. Completely satisfactory brush operation depends on freedom from appreciable sparking, minimum electrical and mechanical losses, negligible commutator or slip-ring wear, uniform film over the commutator or slip ring, quiet operation and good brush life. The ability to produce special structures, and to combine in widely varying proportions materials that are incompatible, through conventional melting and alloying procedures has been the basic contribution of powder metallurgy to the solution of problems involving brushes and allied parts. This is especially true where current-carrying capacity is a major factor, owing to the limitations of all carbon or all graphite brushes in that respect. Metal-graphite Brushes With very few exceptions, friction between moving elements. across which

Jan 1, 1945

By Andrew J. Regis

The methods of evaluation of industrial minerals occurring on Federal lands have different meanings if the evaluations are done by a company rather than a government agency. For example, when the Bureau of Land Management (BLM) conducts an examination of mining claims, this is commonly referred to as a "validity examination," whereas it is an "economic evaluation" when performed by a company. Not only is there a difference in nomenclature in these evaluations, but there is a general lack of expertise in the Federal government on industrial minerals in general. A metallic mentality still prevails in the U.S. Forest Service (USFS) and the BLM. Because of this, many validity exams on industrial-mineral deposits commonly just skim the surface concerning economics and marketability. The BLM and USFS place a high amount of emphasis on past administrative case law pertaining to the validity of industrial minerals under the 1872 Mining Law and, rightly so, on marketability, which also is heavily addressed in case law. When the BLM considers marketability, only the marketability of a particular industrial mineral for only the primary use for which it was located is considered and any value-added markets cannot be included. The BLM defines marketability based only on the value of the mineral material in its in situ or raw state, rather than value-added through processing. Another difference in the evaluation of industrial minerals by government and industry is the question of by-products. When a company evaluates a mineral material it looks at all the markets. The BLM looks only at that market for that locatable mineral for which the claim was located. In other words, sales from non-locatable by-products cannot be used to support marketability or the prudent-man rule (i.e., oversize silica sand from a glass-sand claim being sold for construction sand, road base, fill, etc.). The question of reserves also can present conflicts. An industrial-mineral company will often try to identify all the reserves available for a possible future development. They must do this for financial backing and support from upper management. The BLM, however, will limit their validity examination only to those reserves that meet the prudent-man rule and marketability tests. The BLM will validate reserves sufficient to last 25-30 years, based on available market. The development of industrial minerals on Federal lands is a difficult process, and, if the 1872 Mining Law is changed, it could become not only more challenging but also more costly. The industry must become more tolerant of the mineral specialists in the BLM and the USFS. On the other hand, the government mineral examiners must become more aware of the importance of industrial minerals in everyday living, and the economic evaluation of these materials.

Jan 1, 1999

By Kenneth K. Humphreys

INTRODUCTION At the time the 4th edition of this book was published in 1979, the coal industry had experienced a sharp upturn in prices for its product. From 1950 throgh 1969, steam coal prices had held almost flat at about $5 US per st (about $5.50/t). Thus, when considering the effects of inflation, the price of coal had actually been declining for two decades. The passage of the Coal Mine Health and Safety Act in 1969 and its cost effects started an upward trend in coal prices which was rapidly accelerated by the effects of the Mid-East oil embargo in 1972. Prices of steam coal on the spot market eventually climbed to over $30 US per st ($33/t) and higher in some cases. Metallurgical coal prices skyrocketed in a similar manner and the industry at long last appeared assured of an adequate return on investment. Many companies did expend large sums of money to upgrade and expand their mining and preparation facilities. Unfortunately the bubble eventually burst, in great measure due to the downturn in the US domestic steel industry and the resultant decline in metallurgical coal demand, loss of export markets to other nations and even imports of large amounts of foreign coal to the United States, and more stringent environmental regulations which made many high sulfur coal measures uneconomical to mine. Compounding the problem was the rapid world decline in oil prices in the mid-1980s which encouraged many consumers to utilize oil rather than coal. During the 1980s, metallurgical coal dropped over 20% in price, which, when considering inflation, actually amounted to about a 40% decrease in value. Export coal decreased a similar amount in price. Steam coal prices held nearly constant, thus also losing considerable value when inflation is considered. All of these factors make it even more imperative than ever that the industry do everything in its power to make wise economic decisions and to examine carefully all existing operations and planned future expenditures to be certain that their full cost implications are understood and that they can be justified on the basis of an adequate return on investment. It cannot be assumed that the price of coal will increase. To the contrary, as indicated previously, when considering inflation, coal decreased in value in the 1980s, just as it also did in the 1950s and 1960s. The price surges in the 1970s merely were a catchup game, and in truth the true market value of coal is in reality even lower than it was in 1950. CAPITAL AND OPERATING COST ESTIMATION Prior to constructing a new plant or expanding existing facilities, a detailed preliminary cost estimate is necessary to determine the capital investment

Jan 1, 1991