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By James N. Grassby

Metal production has traditionally been a cyclical industry. 1977 in the base metals industry has highlighted that fact with a steady decline in the market place for base metals. Corporate aggregate planning is based on good forecasting and when changing conditions make that forecasting inaccurate, alternate analysis of schedules must be accomplished quickly. The computer is the only medium powerful enough to answer management's questions within an acceptable time frame. Worldwide communications networks now make it possible for the many multinational mining companies to arrive at coordinated corporate production plans based on similar basic data from several producing divisions. The Ontario Div. of Inco Metals Co., a unit of Inco Ltd., encompassed during 1977 14 producing mines, 2 nonproducing mines, 1 nonproducing open pit, 5 flotation mills, I smelter, 2 nickel refineries, 1 copper refinery, and an iron ore recovery plant. Several new mines are under development. Mine production approximates 63 500 tpd (70,000 stpd) from some 1000 workplaces. The need for longrange mine planning and scheduling is obvious and until recently has been satisfied by manual methods. However, while manual methods are often quite practical for a small number of mines, or for mines with relatively short lives, or for mines with only one mining method, the situation in the Ontario Div. is too complex and long-term to allow effective, timely planning by such methods. In 1967, a year after the first computer was installed in the division, work was begun on the computerization of the more than 30,000 borehole logs kept in the mines exploration files with a view to speeding up the assessment of mineral resources. Also in 1967 one of the first substantial systems developed on the main business systems computer was the monthly scheduling of development and production for all mines. This system encompassed tons productions per workplace, feet development per workplace, auxiliary and service activities and the requisite labor for each of these. These two dates are mentioned to show that concurrently with the acquisition of computers in the division there was an early understanding of the importance of automating mine scheduling and planning and of the potential for effective and useful computerization of such activities. In 1970, a pilot program was developed in one of the mines containing a large number of workplaces (350) to schedule the production on a network basis. Varying degrees of interest were shown by the individual mine engineers based on the complexity of the production planning problem at each mine. In an evolutionary process, mines were added to the system as its value became obvious in terms of time saving, flexibility, and accuracy. In 1975, the central mine engineering department decided that the system should be extended to all mines so that a complete division-wide long-range scheduling system would be available upon which to base development and production planning. This system would use basic ore data, allow the addition of scheduling commands, and calculate a schedule for the life of the mine. Many reports could be produced for each mine and all-mine summaries would also be available. The significance of the system can be stated in one phrase-speed, accuracy, and flexibility. Whereas in the past a long-range all mines schedule might have been done once a year, taking from two to three months, now it can be done in a day. The chief mines engineer can incorporate changes in input data and external constraints and call for a "new look" at the long-range schedule to assist him and mines production management in their decision-making processes. Using previous manual methods this could not be done quickly enough to be useful.

Jan 1, 1979

During the war period of quicksilver activity there were a number of departures from what may be termed the classical quicksilver metallurgy. Attempts were made to beneficiate low-grade ores by gravity concentration and flotation; mechanical furnaces began to replace the Scott furnace and the vertical coarse-ore furnaces, and condensers of sewer tile and redwood tanks were used in place of the older brick and stone condensing chambers. Other developments that have occurred during the current period of quicksilver activity are mainly in the nature of improvement and further refinement of those started during the war period. Each period of quicksilver activity has been accompanied by the proposal of various new processes, including wet methods for the treatment of quicksilver ores and innovations in furnaces, retorts and condenser equipment. As far as the author knows, nothing of economic significance in the way of "new processes" has been developed. There is in fact no real need for any essentially new process for the treatment of quicksilver ores; the direct furnace treatment is simple and inexpensive. Moreover, with rare exceptions, the quicksilver industry has no complex or refractory ore problems corresponding to those which are receiving more and more attention from metallurgists in other branches of the nonferrous field. Untler these conditions improvements in quicksilver metallurgy must be looked for through the adaptation of current developments in engineering and metallurgy generally to the particular needs of quicksilver practice rather than through the invention of new processes. Preliminary Treatment of Quicksilver Ores At Sulphur Bank, in the treatment of old dump material left by the early operators, wet screening is being used as a preliminary step in concentration ahead of flotation. Power shovels and trucks are used to deliver some 400 tons of ore per day to the lower terminal of a hoist, which in turn discharges the material at the top of the screening plant. Wet screening is carried on in two stages. Depending on the character of the material, 1-in. or 2-in. punched screens are used on the first trommel.

Jan 1, 1930

By C. Chapman, M. G. Reading, M. P. Amsden

Computer control of flotation at the Ecstall concentrator By M. P. AMSDEN, C. CHAPMAN, and M. G. READING Ecstall Mining Limited, a subsidiary of Texas Gulf Sulphur Company, operates the Kidd Creek Mine, a 10000 tons per day base metal producer, near Timmins, Ontario. Two different types of ore are mined and milled: copper-zinc and silver-lead-zinc. At the highly automated Ecstall concentrator the ores are processed by selective flotation in three individual circuits. One of the most important metallurgical tools for process control is a sample system incorporating continuous on-stream X-ray analysis. Recently this system was automated further by the addition of computer control of reagents for two copper-zinc flotation circuits. The computer programs, utilizing optimum seeking methods and smelter contract terms, have increased copper recovery by 1,1 per cent, zinc recovery by 1,4 per cent, and have reduced reagent costs by 16 per cent. Although not expected, copper and zinc concentrate grades were improved slightly as well.

By Dunlop GA

Pilot Plant confirmatory testing of the treatment route developed in the Metallurgical Laboratory is an essential factor in the development of complex ore bodies. Objectives should be well defined to permit the efficient planning and cost effective operation of the pilot plant project. The primary objective for the pilot plant should be to confirm the viability of the developed flowsheet on a continuous basis, examining only major variables such as ore types, quantum changes in grind, comparison between bulk and sequential flotation circuits, use of flotation columns, evaluation of autogenous grinding and production of samples of concentrates for market evaluation. Secondary objectives may include the collection of engineering design data and the production of a comprehensive report to Bankable Document standards to provide technical support for capital financing. The complexity of the ore body and the scale of the final operating project together with the pilot plant objectives will determine the extent of the pilot plant operations. The level of expenditure associated with a pilot plant can vary, in total cost and as a percentage of the total development capital investment required to take the prospect from exploration to a producing mine. Factors contributing to expenditure are discussed. Associated with cost considerations is the level of confidence mining company investors can have that their capital investment will return dividends.

Jan 1, 1990

By Dan Swidrak, Bill Zietlow

Halfway through a 17,770-ft long stormwater tunnel, an 11-ft diameter TBM encountered a karst void below the Mississippi River in Missouri, resulting in significant inflow. It was decided that the TBM could not safely advance without external intervention. Low-mobility grout was pumped from the surface. A rescue shaft was constructed and a conventional tunnel with spiling support was mined back to the machine. The TBM was removed and a 14-ft diameter TBM equipped with probing drills was relaunched. Probing from the new TBM encountered one additional karst feature but the machine advanced after grouting and successfully completed the tunnel.

Jun 23, 2024

By S. Gilbert, G. R. Bailey

A further evaluation of the bomb-sampling method for determining the oxygen content of liquid steel is presented. The results of this study and their close agreement with the results of an earlier evaluation confirm the conclusion that the bomb-sampling method is valid for obtaining representative samples for the determination of the oxygen content of a liquid steel bath. WHAT constitutes the most desirable procedure for obtaining a sample suitable for determining the oxygen content of a liquid steel bath has been a controversial subject for several years. In 1952 Huff, Bailey, and Richards' described a modification of the bomb-sampling technique originated by McCutcheon and Rautio.' In both the modified and original techniques, a small cast-iron or steel mold containing aluminum wire and appropriately covered is inserted into the furnace, coated with slag, and then plunged into the metal bath. Upon entering the metal, the cover melts and a sample of the steel bath enters the mold. The data presented by Huff, Bailey, and Richards' indicated that reproducible samples could be obtained by their method. Furthermore, the oxygen analyses from samples obtained by their method agreed better with those from controlled laboratory experiments than did analyses from samples obtained by methods previously suggested for sampling large liquid-metal baths. Most techniques, other than bomb-sampling, require that a sample of liquid steel be removed from the furnace in a well slagged spoon and poured into an iron mold containing aluminum or into a massive copper mold for rapid chilling. Pouring in this manner requires that the sample pass through the air. The controversy, then, is somewhat as follows: Proponents of the spoon-sampling method and similar dip-and-pour methods feel that the introduction of a cold steel mold into a molten steel bath may result in a localized boiling condition that may deplete the steel of oxygen to a significant degree in the area where the bomb is introduced. Conceivably this boil could cause results that are, on the average, too low and nonrepresentative of the bath composition. On the other hand, samples that are spooned and then poured through the air may also be nonrepresentative because of oxidation by the atmosphere. The restrictions imposed in sampling with a spoon are much more stringent than those imposed when sampling with the bomb-type mold within the furnace. The spoon sample must be taken in a well slagged spoon, a requirement that depends on the condition of the slag in the furnace. Also, the samples must be poured as quickly as possible, without shaking the spoon and without allowing slag to enter the mold. The necessity of fulfill-

Jan 1, 1955

By M. Samuels

"Block and panel cave mining methods are being increasingly proposed as they allow massive, deeply situated ore-bodies to be mined economically at a time when discovery rates of significant near surface deposits are declining. Cave-to-Mill, a mine-to-mill approach for block cave mines, defines ore block models with respect to both mine and mill performance. A cave-to-mill study for the New Afton block caving operation focused on identifying value opportunities related to fragmentation and sorting for a future lift as development progresses deeper. The lack of selectivity and potential for dilution associated with the block cave mining method results in many caving operations having to mine and either dispose of or process material that is below cut-off grade at certain stages of production. As an outcome of the study, the variation in cave fragmentation size and the sensitivity of mill throughput to feed size was examined. To evaluate the amenability of bulk and particle sorting, Prompt Gamma Neutron Activation Analysis and X-Ray Fluorescence sensors were tested. A conceptual bulk and particle sorting flowsheet is presented. Grade data from regular underground sampling was used to predict the performance of a bulk sorter. A heterogeneity analysis of material reporting to drawpoints helped to identify areas of the extraction level that experience high variations in grade and thereby stand to benefit from dedicated ore and waste material handling systems should underground bulk sorting be implemented.INTRODUCTION Block and panel caving are low-cost underground mass mining methods that are suitable for excavating weak, massive and steeply-dipping orebodies. Accordingly, cave mining methods have predominantly been used to mine copper porphyry and diamond bearing deposits. Due to the increasing depletion of near-surface orebodies, it is expected that block and panel caving methods will be increasingly used in the copper-gold industry. Their implementation holds significant potential to extend the life of existing open-pit operations by providing an economic means to access ore located at depths that are beyond the practical limits of open-pit mining. Examples of cave mines proposed for British Columbia include the Kwanika Mine, Red Chris underground, Kemess Underground project, and the Iron Cap and Mitchell cave mines of the Kerr-Sulphurets and Mitchell (KSM) project (Moose Mountain Technical Services, 2017; Imperial Metals, 2017; Golder Associates, 2017; Tetra Tech, 2016)."

Jan 1, 2018

By WILLIAM COUPER

THE completion of the excavation of the tunnels through Bergen Hill for the extension of the Pennsylvania Railroad into New York City, together with the fact that the excavation for the rest of the tunnel-line has been practically completed for some time past, arouses sufficient interest to justify a description of the engineering- and contracting-work, and the organization by which it has been accomplished. The finishing of the excavation is a long step towards the completion of the entire tunnel-project. It will be interesting to the members of the Institute, who last spring were taken through a great part of this work, to know that by the excavation now completed it is possible to walk by tunnel from a, point near Sunnyside yard, Long Island, east of the 34th Street ferry, to the central passenger station site in the City of New York, and thence by tunnel to the Hackensack meadows, and by an embankment constructed across these meadows to Newark, N. J. This New York tunnel extension is being constructed as a part of the Pennsylvania Railroad system by the Pennsylvania Tunnel & Terminal R. R. Co., a corporation of the States of New Jersey and New York. It extends from a point near Newark, N. J., to the Sunnyside yard, Long Island, as indicated on the accompanying plan.

Jan 7, 1908

By R. S. Fukuhara, M. J. Allan

"Highmont, a wholly owned subsidiary of Teck Corporation, operates a 25,000 ton/day mine and concentrator located in the Highland Valley of British Columbia. Construction of the plant commenced in the spring of 1979, and production from one grinding line began in late December 1980. The second grinding line began production in March 1980.The ore body consists of two main zones, the east and west pits, containing 134 million tons of ore, averaging 0.26% Cu and 0.27% Mo. Mineralization consists mainly of chalcopyrite (2/3), bornite (1/3), and molybdenite.The concentrator design incorporates an A-B-C grinding circuit (auto mill ball mill - crusher), followed by bulk flotation, copper-moly separation and leaching for moly concentrates. The two grinding and bulk flotation circuits are parallel and independent. Concentrate storage is provided between bulk flotation and copper¬moly separation and also ahead of molybdenite leaching. The plant design has been previously described in some detail. (""THE HIGHMONT CONCENTRATOR"" by C. V. Sibbald, CIMM Bulletin, March 1981).This paper will outline some of the problems associated with the construction, startup and early operation phases of the concentrator. The objective is to help others avoid some of the potential pitfalls by outlining those areas where problems occurred, or where things went well. Criticism of design or equipment is not intended."

Jan 1, 1982

By N. Singh

Merensky Reef is mined extensively within the Bushveld Complex. In previously mined-out areas on the Merensky Reef horizon there are pillars, potholes and remnants that have not been mined. These unmined blocks of ground on the Merensky Reef horizon can influence the mining of the underlying UG2 Reef. The extent of the influence will depend on the size of unmined ground and the middling between the two reef horizons. This paper quantifies the influence of partially extracted Merensky Reef on mining of the UG2 Reef, and aims to provide recommendations for mining strategies, as well as regional and local support to achieve efficient and safe extraction of the UG2 Reef, for various middlings beneath the Merensky Reef horizon. In some cases it was found that relatively shallow UG2 Reef mining could encounter conditions similar to those experienced in deep and ultra-deep mining environments.

Jan 1, 2005

By William F. Boericke

THE Christy Creek clay mine of the General Refractories Co., in the Olive Hill District, ranks with the most important producers in the north-eastern Kentucky fire clay field, both from production of high-grade flint clay, as well as unusual extent and thickness of deposit. The property is but one of a number controlled by the General Refractories Co. in this district, but is given first consideration among them by the operating staff. Its total area is over 5000 acres, owned in fee or by lease of clay mining rights, and although mining operations have been in progress for over five years, scarcely one per cent of the ground has been worked as yet. The mine is near the southwestern end of the clay field, which extends in a belt 12 miles wide and 55 miles long, in a southwestern direction from Kenova, W. Va., which, as the name indicates, is at the junction of Kentucky, Ohio, and West Virginia. Olive Hill, where there is one of the l1Ulin plants of the General Refractories Co., and to which the clay from the mine is shipped, is about 26 miles distant from the mine. Connection is made with the Chesapeake & Ohio R. R. by a spur line . 8 miles in length, owned and operated by the company.

Jan 1, 1929

By C. Perez

In mineral processing plants it is important to estimate rock composition, size and grindability to improve control of the grinding process. It is well known that variation in ore grindability and size distribution directly affects mills power consumption and throughput. This paper extends a general machine vision approach for on-line estimation of rock mixture composition using color information. Our proposed rock lithological recognition method requires the following steps: division of each image into sub-images, color feature extraction using the Binary Quaternion-Moment-Preserving thresholding technique (BQMP) and support vector machines (SVM) for classification. The BQMP thresholding technique splits the image in two and chooses representatives of each half using the histogram as features. The statistical parameters of the color data can be expressed using the quaternion moments into the representatives. This method can be recursively applied to the sub-images, obtaining 5x2n features in n iterations. Once the feature vector has been computed, each vector is assigned to one of three classes using a classifier. The method was tested on a database containing 20480 sub-images (64x43 pixels) of five ore types as follows: massive sulphide (MS), disseminated sulphide (DS), net textured (NT), gabbro (G), and peridotite (P). These ore types were assigned to three grindability classes: soft (MS), medium (DS and NT) and hard (G and P). The database was divided in 2 subsets: 15360 sub-images used for training and cross validation and 5120 sub-images used for test. The classification accuracy was compared with a method previously published based on a mixture of principal components analysis (PCA) for color, and wavelet texture analysis (WTA) for texture feature extraction. WTA-PCA approach reached a 76% accuracy in test while our BQMP method reached 90% of classification accuracy using only color features. Experimental results show that our proposed method yields excellent results compared to previously published results. Keywords: rock classification, lithological classification, grindability estimation

Sep 1, 2012

The development of 3D multi-parametric models facilitate the provision of resource information well in advance of the mining face. Using the model, one can evaluate mining areas not only for grade and tonnage predictions but also for predictions of rock mass quality. Blast design and milling requirements can be derived from the rock mass quality predictions. This information can be used for overall mine planning and evaluation, costing, production optimization and slope design. This allows the full range of mining activities and costs to be interconnected, there by lowering costs and improving efficiencies through the application of the multi-parametric model. Feasibility studies for new projects require an expected budget expenditure estimate to within5% of actual costs. This level of accuracy is expected by mining companies and investors but cannot be achieved without a sound knowledge of the rock mass variability. By developing a 3Dmulti-parametric model as part of the feasibility study and using the same geological model exploration boreholes, a significantly better understanding of the rock mass conditions can be obtained. This rock mass information can be used for equipment selection, economic pit layouts, processing plant design, underground mining layouts and support requirements, to name but a few design parameters that depend on rock mass conditions. The initiative at Anglo Platinums, Potgietersrust Platinum Ltd.?s (PPRust) operation, has delivered significant results showing improvements across the mine to mill value chain. These include increased loading rates, reduced electricity and crushing consumables, as well as higher plant throughput. The ore reserve model has gained international acceptance as an invaluable tool for a mining operation. Certainly most financial organizations will not invest in a mining project that does not have an ore reserve model. There is the potential for multi-parametric models to be recognized as vital tools in the mining process, as is the case with ore reserve models.

Jan 1, 2006

By José Hamilton Resende Tavares, Késsius Bortolan Menezes, Mariana Vieira de Moura

Sampling and its representativeness is of significant importance in process control and decision making in the mineral sector. In this way, the present work seeks to compare different methodologies for the sampling of the iron ore from Anglo American. Through a sample of 120 kg, representing the industrial flotation circuit feed, samples obtained by the method of long pile, random sampling and rotary sample divider were analyzed, being the latter adopted by the company. In this case, after sampling, the material obtained through each method was subjected to the same sequence of characterization tests and the difference between the results statistically analyzed. Through such analysis it was observed that the random sampling method showed high values of variability and is therefore considered as unsatisfactory when compared to the other methods tested. In addition, rotary sample divider also showed parameters slightly superior to the long pile method. This study confirms the importance of appropriate sampling systems and procedures systems in the pursuit of reliable results.

Oct 3, 2019

By Xiao-hui Fan, Xu-ling Chen, Zhi-yuan Yu1, Guanghui Li, Min Gan, Yun-song Huang, Tao Jiang

Compared with the traditional de-NOx processes by cleaning the waste gas, a new approach for reducing the formation of NOx during sintering process is proposed. Since more than 90vol% of NOx comes from the fuel combustion, the influence of sintering coke breeze pretreated by CO(NH2)2 additive on the NOx emission is researched. As adding CO(NH2)2, the reduction agents (NHi) are generated during the pyrolysis of CO(NH2)2, which reinforce the NOx reduction, And the appropriate content of CO(NH2)2 is 1.0 mass% of coke breeze.

Jan 1, 2015

By S. N. Monteiro, C. M. F. Vieira, A. P. N. M. de Sa, J. P. D. Vitorino

"This work has as its objective to characterize an ash waste and to evaluate its incorporation into a clay to produce bricks and roofing tiles. The waste is a type of fly-ash resulting from the incineration of a selected part of urban garbage, which is basically constituted of organic matter and plastics. The waste was submitted to mineralogical and chemical characterization. Compositions were prepared with incorporation of the waste in amounts of up to 20wt.% into athe clay. Rectangular specimens were prepared by extrusion and fired in a laboratory furnace at 900°C. The physical and mechanical properties evaluated were: linear shrinkage, water absorption and flexural rupture strength. The results showed that the waste is predominantly composed of quartz and calcium compounds. The incorporation of the ash was deleterious to the evaluated properties of the clay. It is suggested that the incorporation should be made in amounts below 5wt. % to avoid deleterious effect in the mechanical strength and water absorption of the clayey ceramic.IntroductionThe world attention has turned to a subject of great concern today, the production and disposal of large amounts of industrial wastes as well as wastes of various sources. When deposed in an unsuitable place, these wastes can cause considerable harm to human health and to the environment. Our planet suffers with air pollution, groundwater and soil contamination as well as silting of rivers and lakes with the growing amounts of our society wastes.The recycling of waste materials is of great interest to the industries, mainly due to the environmental agencies legislation. One of the practices for correct disposal of these wastes being investigated is to incorporate into red ceramics, such as bricks and roofing tiles. The natural variability of the characteristics of the clays associated with the relatively simple processing techniques and also the low performance required for the products allow the presence of relatively high levels of impurities in clayey ceramics."

Jan 1, 2011

By John R. Marks

The recent trend in the ventilation of deep under- ground metal mines in the United States is to rely more and more on refrigeration for air cooling. This paper describes the layout and the economics of the refrigeration method used by Hecla Mining Company at the Star Mine. An economic analysis must compare the benefits of an engineering system against the costs. The benefits of refrigeration, for example, are increased production rates, a better safety record, improved employee moral, and generally lower airflow requirements. Air-conditioning costs include capital expenditures for equipment, labor and supply costs for maintenance, and power costs for machine operation. A study of whether or not to install refrigeration becomes academic when a mine reaches the critical ventilation depth1 (the depth at which adiabatic compression alone produces station temperatures equal to the desired stope temperatures). Ventilation planning alternatives for such mines, including the Star Mine, are limited to the different methods of refrigeration usage. In this case study of the Star Mine, the refrigeration layout is described in detail. After the system performance is discussed, air-conditioning costs are calculated. The paper then concludes with a cost- benefit analysis of the Star Mine refrigeration system.

Jan 1, 1980

Grade control is a real challenge, and better sampling and modelling practices are among the tools that have proven efficient in improving it. Although based on rather trivial examples, this paper addresses the following important issues: How much of a challenge is it? How and to which degree can it be improved? And what kind of economic benefits should be expected in return for the corresponding efforts?

Jan 1, 1999

By R. S. Tahautdinov, A. N. Posazhennikov, V. V. Bastrygin

"The Bakal (South Ural, Russia) deposit of iron ore bearing iron carbonate (siderite) with the capacity of more than 1 billion tones belongs to the MMK. This ore cannot be fully processed via blast furnace technology because of high content of MgO. According to the investigations carried out in the USA and Japan in 1999-2004 the ITmk3 (Ironmaking Technology mark three) RHF technology is a breakthrough in Ironmaking. Four iron ore types (hematite, magnetite, high and low Al2O3/SiO2) were tested. Reduction, melting and slag removal can be achieved in just 10 min. The main objective of the investigation is to establish optimum operation conditions for the production of iron nuggets from iron carbonate bearing ore via the ITmk3 by means of the lab scale testing. Samples of iron ore and carbon reductant were chemically and physically analyzed. Green pellets were processed via a lab tube furnace to simulate RHF conditions. The nuggets and slag were chemically analyzed. This preliminary test work provides valuable information which may be used for large-scale testing in a commercially sized RHF.IntroductionThe ITmk3 process upon which this paper focuses was developed by Kobe Steel in its research facilities in 1996 [1]. After pilot testing at Kobe Steel’s Kakogava Works in 1999-2004 the pilot demonstration plant was built and operations were successfully carried out by Mesabi Nugget joint venture in 2002-2004. Steel Dynamics has committed to building the commercial plant at the Mesabi Nugget site in Hoyt Lakes (Minnesota). Only 4 iron ore types (hematite, magnetite, high Al2O3/SiO2 and low Al2O3/SiO2), as well as 4 coal types with range of volatility, ash and fixed carbon were tested. Results were consistent with nugget characteristics confirming ITmk3’s flexibility with respect to raw material inputs. At the same time, no research in the field of nugget from iron carbonate bearing ore with high content of MgO has been done. Such kind of iron ore is restricted for charging into the blast furnace due to contamination of MgO. The reason for restriction is the limitation of load of MgO in the blast furnace. If a lot of MgO enters the blast furnace, slag becomes viscous. The viscous slag is obstacle for stable operation of the blast furnace."

Jan 1, 2011

By William A. Griffith

The recent recession has severely impacted the performance and results of virtually all of our natural resource companies. The depressing climate continues to linger and recovery maybe sometime away. Problems remain for resource companies in the steel and petroleum industries as well as the mining business. In February, at the AIME Annual Meeting in New York, an All-Institute session presented a variety of views on the situation. A. T. Yu, chairman of ORBA Corp., Mountain Lakes, NJ, organized presentations by top management personnel of four natural resource companies. This well attended session heard management strategems for the present and views for the future. A compilation and synthesis of these presentations, gathered by Dr. Yu, are presented here for ME readers. Leading off will be William A. Griffith, president and chief executive officer of Hecla Mining Co., Wallace, ID. Other speakers presented here include Wilfred P. Schmoe, executive vice president of Du Pont Co., Wilmington, DE; Frank W. Luerssen, chairman and chief executive officer of Inland Steel Co., Chicago, IL; and Adam H. Zimmerman, president and chief operating officer of Noranda Mines Ltd., Toronto, Ontario. First, then Griffith's remarks. Introduction The key to successfully managing a natural resource company in austere times is good management in good times. In other words, position the company during prosperous times to survive the times when the well dries up. Although we know how to manage properly, for various reasons we sometimes do not do it. We forget the lessons of history. We allow ourselves to be carried away by our egos. We fail to position our companies properly in good times. As a result, in bad times we find ourselves in deep trouble. We need constant reeducation in the things we already know. In the natural resource industries, proper positioning in good times involves becoming a low-cost producer, retaining the flexibility to pull in our horns, developing a lean and effective organization, and maintaining a healthy balance sheet. Nothing improves the chance of survival during austere times as much as being able to produce at a lower cost than your competitors. In our business, that means having low-cost mines - low cost because the ore bodies are high grade or favorably located, and because they are efficiently operated. It also means recognizing the competition. The key numbers are the cost to produce an ounce of silver or gold. Nothing else really counts. And our competition is every other precious metal mine in the world. Flexibility is important when one gets stuck with a high-cost operation, often because things do not work out as we expect. It is important to be able to shut down an operation quickly and easily, without high holding costs, and without disrupting the corporate organization. A lean and mean, effective organization of competent people is vital during bad times. A company will not have that if it is not developed and maintained during good times. Finally, a natural resource company has to develop a healthy balance sheet during good times if it is to survive the bad. Money in the

Jan 6, 1985