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By R. H. Tien

The accuracy of the method of steady-state approximation applied to the problems of heat transfer involving phase change (London and Seban's solution) is improved by defining a "modified heat of fusion" which accounts for the effect of specific heat. An analytical expression for this modified heat of fusion is derived in terms of the actual heat of fusion, specific heat, and surface temperature. Numerical solution for the freezing of iron indicates that the ratio of the modified heat of fusion to the actual heat of fusion increases from 1.04 to 1.4 as the surface temperature decreases from 2700° to 1600°F. The heat transfer process accompanying solidification is complicated owing to the moving solid-liquid interface where the latent heat of fusion is released. Exact analytical solution is available only for a few special cases of freezing problems such as Stefan's1 problem. In a commonly used steady-state approximation method, London and seban's2 solution, the effect of specific heat is neglected. This approximation, however, may introduce some degree of error in mathematical analysis when the temperature of the solid surface is much lower than the freezing temperature, as in the case of freezing metals. In a recent work by Robertson and Schenck,3 the problem of freezing a semi-infinite region with finite surface conductance was programed in a digital computer through the finite difference method. A family of curves for the correction of the London-Seban solution was given in a dimensionless plot for different ratios of heat of fusion and specific heat effect; it was shown that the London-Seban solution when applied to the freezing of a mild steel slab under some particular conditions gave results in error by about 10 pct in the solidification rate. Although the Robertson-Schenck computer result has improved the London-Seban solution to a great extent, lack of generality and the tedious computing procedure have restricted its application. In this paper a "modified heat of fusion" which accounts for the effect of specific heat is defined, and is used instead of the actual heat of fusion in the London-Seban solution. An analytical expression of this modified heat of fusion in terms of the specific heat, surface temperature, and actual heat of fusion is derived by comparing the solutions of Stefan and London-Seban for the case of freezing of a semi-infinite region with constant surface temperature. It can also be extended to the case with finite surface conductance, and the results show good agreement with the Robertson-Schenck computer solution. The expression of the modified heat of fusion, the accuracy of the London-Seban solution, and the temperature distribution within the solid are presented graphically in dimensionless form. Numerical solution for the freezing of iron indicates that the ratio of the modified heat of fusion to the actual heat of fusion increases from 1.04 to 1.40 as the surface temperature decreases from 2700° to 1600°F.

Jan 1, 1969

By James K. Stanley

When a plastically deformed mctal is heated to a certain temperature, it undergoes a complete change in microstructure, the consequence of which is a marked alteration of mechanical properties such as hardness, strength and ductility. This change in microstructure occurs by re-crystallization and is a process involving the formation and growth of strain-free nuclei in the deformed matrix. These nuclei continue to form with time and grow until a new grain structure replaces the cold-worked structure. The formation of the nuclei in the deformed sheet of I per cent silicon ferrite is illustrated in Fig. I. If a recrystallization is conducted iso-thermally, a nleasurement of the fraction of the matrix recrystallized plotted against time leads to an isothermal recrystallization curve, first established in 1942.1 Such recrystallization curves are shown in Fig. 4. These curves show that the recrystallization of a cold-worked metal is best considered as a rate process rather than a time independent process such as is suggcsted by the improperly named and misleading recrystallization diagrams involving deformation, temperature, and grain size.2-5 Any study of the rate of recrystallization resolves itself into a study of the component rates of nucleation and growth. The previous paper1 provided an account of the determination of the rates of nucleation; N, the number of nuclei formed per unit time per unit of unre-crystallized area, and growth, G, the radial growth in unit time, in the recrystallization of silicon ferrite (I per cent Si). A method was developed to furnish experimental data for evaluating the effect of the recrystallization variables on N and G. The mathematical analysis for the derivation of the isothermal recrystallization curve was developed for a two-dimensional case (in thin sheets where the diameter of the recrystallized grain is greater than the sheet thickness). The present paper is a continuation of the study of recrystallization of I per cent silicon ferrite begun in 1942.1 In this work the effect of the factors deformation, temperature, grain size, composition, and recovery is studied with respect to the rates of liucleation and grouth. At the same time it is shown how the cooperation of N and G affects the isothermal recrystallization curve. The study of these variables on N and G has a definite bearing on the mechanism of recrystallization and should lay a foundation for a rational theory on the subject. Procedure The procedure used in these experiments was essentially the same as that described previously but in certain details some changes were made in the interests of speed. With few exceptions, the procedure is the same for the study of all the variables. Where the procedure is different from standard manipulations attention is called to this fact.

Jan 1, 1945

By Frank Pepe, Nestor Garavelli

The 2023 Rapid Excavation and Tunneling Conference (RETC) will be held in Boston, MA and will include the presentation of 133 papers divided into 20 technical sessions during the 3 day conference that were selected from over 200+ papers that were submitted to the committee. The selected papers are included within this book to provide a comprehensive recap of the conference while also providing a source of reference for contractors and engineers in the future. The selected papers will include contributions from all divisions of the tunneling industry plus risk management and best contract practices. Boston is known to the tunneling industry for its complex and difficult tunneling history, specifically of recent memory the Central Artery/Tunnel Project also know as the “Big Dig” of the 1980s and early 1990s. The selection of Boston as a host city was fitting from a historical perspective and as avenue for the city to present its upcoming tunnel projects. RETC began in 1972 with the idea of sharing ideas, design and project construction experience, and new technology, between contractors, designers, owners and suppliers. The ability to provide a single location every other year for all facets of the tunneling industry to gather and discuss the aforementioned was and still is viewed as a way to help the tunnel industry grow. The lessons learned from completed projects, the advancement of technology which could be implemented into design and the presentation of new projects by owners/designers and contractors allows for the limits and complexity of upcoming projects to be expanded beyond our current capabilities. Our industry has never been as busy as it currently is, and we are seeing more future projects coming out for solicitation across all business sectors. With the good fortune that all of us have been blessed with one of the biggest challenges that we have been faced with is the shortage of future management on all levels for our projects including the labor force. We all want our industry to continue to grow and succeed, our most important assets are the people that we employ. Investing in the education and continued training of our work forces to be up to date with the latest technology and methods is the key to our success. This also includes develop, recruiting and mentoring of young students graduating college to join our industry so that we can all continue to grow. We hope that all those attending the conference will have the ability to attend as many sessions as possible and to expand their network within our industry. As in past years, scholarship students will be in attendance and we encourage all to offer these students an opportunity to visit jobs, attend learning sessions or future internships to expand their interest in our industry that needs an injection of young engineers to contribute and lead our future Rapid Excavation and Tunneling Conferences. The program chairs wish to thank the session chairs, co-chairs, authors, and other members of the RETC Executive Committee for their dedication to this conference. Last but certainly not least, we give special thanks to the SME staff for their hard work and enthusiastic support in making this conference possible.

Dec 1, 2023

By Haigh C. J

A process has been developed to recover at least 75% of the 2-naphthol contained in cobalt precipitate produced during the removal of cobalt from electrolytic zinc plant solution. The recovered material is in a form suitable for recycling to precipitate further cobalt from solution. The process consists essentially of two steps. The first involves leaching of cobalt precipitate in 400 g/l sodium hydroxide solution at 95¦C in the presence of an additive. The second step involves treating the filtrate from the leaching stage with sodium sulphide to precipitate cobalt as the sulphide thereby re- generating the sodium hydroxide for recycling. The process is only marginally profitable at present 2-naphthol prices, giving a net return of 20% on a capital investment of $1 200 000. A reaction mechanism is proposed which accounts for the 25% loss of the 2-naphthol in the recovery process.

Jan 1, 1977

By J. M. Casas

This work presents the development of an ionic equilibrium model and its use to simulate the distribution and concentration of chemical species (speciation) in sulfuric acid - cupric sulfate solutions in the 0-2 pH range, 0.1-10 gpl copper concentration range and 15-45°C temperature range. The model consists of a set of equations which represent the equilibrium relationships for the ionic reactions and the mass balances for the components present in the system. The effect of ionic strength was taken into account by correcting the equilibrium constant in concentrated solutions. Several species can be formed at different pH and temperature values, the principal being: HSO-4, SO42-, CuSO4(aq), Cu2+, and H+ in order of increasing solution acidity. Simulations show that concentrations are highly dependent on pH. The sulfuric acid speciates mainly as bisulfate ion (HS0-4) and hydrogen ion (H+) at pH values lower than 1. The model presented in this work can be applied to predict and analyze the solution composition in electrolytic copper processes such as electrowinning, electrorefining and electrodialysis, as well as the purification of various industrial solutions.

Jan 1, 1999

By W. Missildine, J. K. Hrica, I. Benbourenane, T. J. Orr, J. L. Bellanca

Each year, haul truck accidents account for a large portion of mining injuries and fatalities. To better understand why these accidents continue to occur, researchers from the National Institute for Occupational Safety and Health (NIOSH) utilized a cognitive task analysis methodology to identify the user requirements of surface haul truck operators and assess differences in perceptions between operators, managers, health and safety professionals, trainers, and maintenance personnel. Additionally, researchers used the critical decision method to focus on better understanding the cognitive demands, decision-making, and problem solving during nonroutine incidents. The preliminary results of this study identify and explore themes within the broad categories of hazards, skills & expertise, and training and provide detailed accounts of nonroutine incidents such as near-misses, loss of control, and collisions. These accounts reveal insights into operator decision making and event progressions that can then be used to build more realistic training scenarios and address hidden hazards and root causes of these incidents. These results, along with potential solutions offered by study participants, can inform future research and help identify creative interventions that can be used by mine operators to address haul truck safety issues

Mar 2, 2022

By S. Hill

For a mining operation, the determination of the best place to build haul roads is typically done by hand, or with the assistance of rudimentary shortest path optimisation algorithms. Straight line, point to point, modelling of costs is often used with distances multiplied by constants that are based on rise of the road between the points. Failings of this approach are that straight line approximations are notoriously poor as they do not take into account areas where a truck cannot travel. In addition, the rise and fall of the road may vary considerably over the truck journey meaning acceleration/deceleration and varying truck speeds are not taken into account. Lastly, the use of rudimentary optimisation algorithms means properties a truck must obey such as minimum turning circles, line of sight restrictions or even that the truck must travel forward at all times are not taken into account. Thus solutions generated may not be feasible, let alone optimal. In this paper we discuss a state of the art parallel Artificial Intelligence tree search technique for solving haul road location problems. As well as the above properties, factors such as road utilisation, cut and fill, and construction costs are taken into account. The combination of advanced modelling and fast computing and optimisation techniques produces significant benefits both in terms of time to generate roads and cost savings. Preliminary results where this method has been used are discussed.

Aug 1, 2013

By Stephen L. Chryssoulis

"""Preg-robbing"" of gold by carbonaceous matter during the cyanidation of certain types of carbonaceous gold ores is well documented. Recent studies established that ""preg-robbing"" of gold is not limited to carbonaceous matter. Gold sorbed on the surface of pyrite grains was detected and quantified by TOF-LIMS (Time of Flight Laser Ionization Mass Spectrometry). Crystallites of pyrite from a number of ores from different geological environments have been shown to have gold on their surface apparently sorbed from the ore forming solutions. Surface gold accounts for significant fractions of the gold head assay. Preg-robbing of gold by pyrite from pregnant cyanide solutions was also documented, and accounts for significant losses to tailings. Preventative measures are discussed.1.0 IntroductionThe detection and subsequent quantification of gold sorbed on the surface of pyrite particulates came about during routine determinations of the deportment of gold employing the comprehensive mineralogical approach (Chryssoulis and Cabri, 1990). In some pyritic gold ores it was discovered that the sum of the various forms in which gold ""conventionally"" occurs, was short of the gold assay. The mineralogical procedure used involves the independent determination of each fraction of gold, in other words there is no form of gold which is calculated ""by difference"". The systematic shortfall after having added the forms of gold listed in Table 1 led to the inquiry for the 'missing' gold and its discovery on the surface of pyrite grains, such as crystal facets and fractured surfaces.Preg-robbing of gold by pyrite from pregnant solutions was first described by Lloyd. In his studies, preg-robbing was measured by changes in the solutions/solids gold assays. This paper describes the first application of a direct measurement method for surface gold on pyrite particles from untreated and processed samples, its impact on gold deportment and processing. The advantage of the direct measurement lies in the absence of interference from other forms of gold, leading to more accurate and precise determinations of this unconventional form of gold."

Jan 1, 1997

By R. M. Brick, Arthur Phillips

The Institute of Metals Division Lecture in 1936, given by R. F. Mehl, on diffusion in solid metals1, was introduced with the statement that "the phenomena of diffusion are intimately related to many basic problems of the metallic state, but in addition to this the process of diffusion is of first importance practically." In view of the scope of that lecture, it does not seem necessary to review the importance, history or present status of diffusion problems. One aspect of the subject of diffusion that has received little attention became of some immediate importance in the course of a study on segregation. When a solid solution alloy freezes, the familiar mechanism of solidification requires that the first nuclei formed be low in solute concentration, with a resultant normal segregation or coring effect during freezing. Theoretically, musion of solute atoms during solidification should result in a homogeneous solid solution. Actually, of course, it is impossible in most binary alloys to obtain a cooling rate that will permit diffusion to eliminate coring in the freezing dendrites. For a given alloy, the extent of diffusion attained up to the point of final solidification will determine the degree of enrichment in solute atoms of the final liquid phase. The flow of this liquid into dendritic contraction channels and the solute concentration of the liquid seem to be the determining factors as to whether the final gross segregation is normal, inverse or absent. The purpose of the present study of diffusion was to determine to some extent the separate diffusion rates of copper and magnesium into pure aluminum with a view to clarifying previous results on segregation in these alloys; i.e., the fact that under similar freezing conditions aluminum-copper alloys segregate inversely and aluminum-magnesium alloys segregate normally. Of concomitant interest were the questions of the homogenization times required for segregated ingots or partially melted, i.e., "burnt," structures, and the solution heat-treatment times required for cast, hardenable aluminum-copper and aluminum-magnesium alloys, for worked and annealed structures, and so forth.

Jan 1, 1937

By M. Huang

Electrodeless conductivity was employed to investigate the feasibility of continuous on-line monitoring of the free acidity of sulphate and/or chloride solutions of Cu and other base metals from various hydrometallurgical processes. These solutions were measured with both commercial and experimental electrodeless conductivity sensors from 15 to 250°C. It was confirmed that hydrogen ion has the greatest impact on conductivity by carrying the bulk of the current because it is the most mobile ion. In combination with a solution speciation analysis the conductivity sensor can be calibrated to account for the contribution of Cu electrolytes as well other dissolved salts allowing fast and accurate on-line measurement of free acid. The sensor was tested at both lab and pilot scale with very good performance. The average difference between the measured and the titrated acid concentration was less than 5%, which is excellent for industrial applications.

Jan 1, 2007

By Frédéric Flament, Luc Lachance

"The important task of metallurgical accounting that used to be done manually is being more and more automated. Currently available solutions can generate accounting reports without human intervention or almost. However, the practical conditions for fully delivering the promised benefits of those solutions are sometimes overlooked either by end-users or by integrators. The mere fact of filling reports with values satisfying several constraints such as mass conservation constraints does not, by itself, ensure a high quality metallurgical balance. Since managers make decisions based on these reports, it is logical that the metallurgical balance performance be monitored and retrofits be made if necessary. Such retrofits may involve modifications to the measurement strategy or the reduction of the spatial resolution of the material balance model. This requires an estimability and redundancy analysis (ERA) tool to assess the feasibility of the modified model. Since determining by hand the estimability and redundancy of a set of non measured and measured variables is not trivial, even for a medium-sized mineral processing plant, a dedicated ERA tool brings valuable assistance to the metallurgist in charge. The present paper aims first at explaining how a state of the art metallurgical balance is a key enabler for the adoption of a smart process plants paradigm (SPPP) in mineral processing. Then, the fundamentals behind the building of an ERA algorithm are introduced and illustrated by two examples. Finally, the role of an ERA tool in achieving state of the art metallurgical accounting and how it contributes to delivering additional value are discussed.INTRODUCTIONThe Smart Process Plants Paradigm (SPPP)Mineral processors have seen an increase lately in external pressures toward operating performance improvements. Indeed, the globalization of the mining business is a key driver to becoming more productive, more responsive to market changes, to improving corporate governance and reporting standards. Furthermore, mineral processors are also expected by their neighbouring communities to continuously improve their sustainability score. These current pressures differ somewhat from the past ones in leading to a larger than ever number of conflicting constraints that plant managers must concurrently satisfy while maximizing plant profitability. It is in turn not surprising that this context requires actions involving more real-time collaborative actions between more people in more places than ever before."

Jan 1, 2011

By Leigh J. Wardle

This paper describes a numerical method for calculating the three¬-dimensional stresses and displacements induced by tabular excavations in a rock mass consisting of parallel layers of distinct material properties. The method is based on the superposition of numerical solutions for elementary displacement discontinuities in a parallel layered rock mass. The method can be used to analyse complicated excavation layouts such as those encountered in room-and-pillar or longwall mining. The method can automatically take into account the effect of the earth's surface. The method offers an economic and efficient solution to stress analysis problems which cannot be adequately modelled using two¬-dimensional methods and for which the expense of three-dimensional finite element or general boundary element analysis cannot be justified.

Jan 1, 1984

By James A. Voigt

The efficient separation of metal species from aqueous streams by precipitation techniques requires 'a fundamental understanding of the various processes that occur during precipitation. These processes include particle nucleation, particle growth by solute deposition, agglomerate formation, and agglomerate break-up. The application of the population balance approach has been used to develop a kinetic model that accounts for these competing kinetic processes. The usefulness of the model is illustrated through its application to the precipitation of yttrium hydroxynitrate, YHN. The kinetic parameters calculated from the model equations and system-specific solution chemistry are used to describe several aspects of the effect of pH on the precipitation of the YHN. Implications with respect to the simultaneous precipitation of more than one cation type are also discussed through use of example systems: The effects of solution chemistry, precipitator design, and solvent choice are considered.

Jan 1, 1996

By George A. Morgan

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East. The 15 countries that constitute the region accounted for 28% of world crude petroleum output, 17.2% of world natural gas plant liquid production, and 5.3% of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. About 66% of total world crude petroleum reserves and 31 % of total world natural gas reserves are in the Middle East. Transportation and port facilities in the region are geared to expediting efficient and rapid shipment of these materials. Export sales of these fuels provide funding for further diversification of the mineral industry. Additional development of downstream facilities for producing energy-intensive metals such as aluminum and byproducts of the fuels such as petrochemicals and fertilizers can be expected. Earnings from the industry are also channeled by several Governments in the region to mineral industry projects in Africa and elsewhere. Several countries in the region own major petroleum refineries and distribution facilities worldwide. Petroleum prices rose overall during the year owing to the invasion by Iraq of Kuwait in August 1990. Output from both countries, the fourth and fifth largest producers, respectively, in the Middle East, was negatively affected by the war. Kuwaiti crude oil wells and pipeline facilities suffered extensive war damage while exports of petroleum and petroleum refinery products by Iraq ceased owing to a U.N. embargo. The embargo also impacted Jordan, an exporter of phosphate and potash. Shipments of crude petroleum by pipeline from Iraq through Saudi Arabia and Turkey and by vessel through the Persian Gulf were terminated. However, the loss in production from Iraq and Kuwait was more than made up by accelerated output from other Middle East and world producers. Saudi Arabia, in particular, with its excess production capacity, accounted for the largest portion of the increase.

Jan 1, 1992

By Oliver Zach

To know as much as possible about the condition of the refractory material (lining thickness, slag layer, build ups, ...) in an high temperature furnace is very important due to the safety and economic impacts. The new CONSCAN system offers the possibility to measure the inner surface of an furnace, and based on this results to calculate the thickness of the refractory lining, slag layer, build ups,.... The CONSCAN System provides this results as figures and graphics. This system is also working under hot conditions so it is not necessary to cool down the furnace. Based on these results the process control and the refractory lining concept could be optimized for maximum campaign life of the furnace.

Jan 1, 2006

By N. Duda, P. Śliwiński, P. Stefaniak, B. Jachnik

Ventilation and air-conditioning are some of the most energy-consuming processes in deep underground mining. Additionally, the energy consumption of these processes systematically increases along with the expansion of the mine. Therefore, proper energy efficiency assessment and consumption forecasts of these systems are particularly important in modern mines for ongoing tracking and planning of the likely costs. In the article, a short-term prediction model for surface air–conditioning stations is described. This model takes into account dependencies that were identified, based on the data from the supervisory control and data acquisition (SCADA) systems. These dependencies between the response value and the external conditions are then incorporated into the model. This way, for example, the ambient temperature or the total number of specific days of the week (with sometimes significantly lower or higher than the weekly average energy consumption levels) are included. Taking into account these dependencies, and e.g. forecasted average monthly temperatures allow us to include the seasonality of energy consumption in the presented model. In the article, a sample energy efficiency analysis of the A/C system based on an example of the KGHM Polish Copper Polkowice-Sieroszowice mine is performed. The results of the solution proposed in the article are then evaluated, and compared to the currently functioning, more basic forecasting methods. However, given the general nature of the dependencies used in the model, similar solutions could be used in other case studies.

Sep 1, 2021

By James L. Coburn

Leaching is defined as a form of extraction in which a valuable constituent is removed from a solid body by mass transfer to a solution which, for the purpose of this discussion, is considered to be an aqueous medium. Historically, leaching has been applied to the recovery and purification of many elements. This paper, however, is directed toward the recovery of copper, uranium, vanadium, and precious metals included in the following systems: 1. The leaching of copper minerals, sulfides and oxides, by acid or by ammoniacal leach solutions with or without an oxidant. 2. The leaching of gold and silver, either native metals or as minerals by an oxygen-containing alkaline cyanide solution. 3. The solubilization of certain uranium and vanadium minerals by oxygen or oxidant-bearing lixiviants. Many other systems of this general type exist, but from a production standpoint, these three systems account for most of the major values recovered by leaching.

Jan 1, 1975

By W. A. Dixon Edwards

Industrial mineral production in Alberta, worth $468 million in 1997, comes from a dozen types of industrial minerals, mined by about 400 producers. Cement and lime from Paleozoic limestone formations exposed along the Rocky Mountains account for the greatest production value. Sand andgravel is the primary source ofmineral aggregate. Almost two-thirds of this aggregate is consumed in the Edmonton and Calgary regions. Sulphur produced at 48 sour gas processing plants and two oil sands plants was valued at $84.8 million in 1997 and accounted for 80% ofCanadian sulphur production. Four companies solution mine the Elk Point salt beds to produce chlor-alkali chemicals, industrial salt and sodium chlorate. Natural brine is also produced as a dust control product. Al $22 million, peat moss is a major industrial mineral product in Alberta. Other minerals with noteworthy production include shale, stone, silica and ammolite. The commodities with the greatest development potential are diamond, silica and oil sands tailings by-product minerals.

Jan 1, 2001

By George A. Morgan

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East. Downstream processing of these mineral fuels to petrochemicals and fertilizers is a major investment opportunity. In 1991, the 15 countries that constituted the region accounted for 26 % of world crude petroleum output, 15.3 % of world natural gas plant liquid production, and 4.5 % of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. Production of these mineral fuels all declined from that of 1990 owing to the Persian Gulf War, during which output from Kuwait and Iraq either ceased owing to war damage, or was embargoed. Prior to the war, Iraq and Kuwait were the fourth and fifth largest world producers of crude petroleum, respectively. In the war, virtually all of Kuwait's production and transport facilities were destroyed or damaged. Iraq's output was embargoed from export, with only domestic sales taking place. The embargo also affected Jordan, both in terms of transshipment of materials through it to Iraq and in exports of phosphate and potash. Shipments of crude petroleum by pipeline from Iraq through Saudi Arabia and Turkey and by vessel through the Persian Gulf were terminated. However, the loss in production from Iraq and Kuwait was made up by accelerated output from other Middle East and world producers. Saudi Arabia, in particular, with its excess production capacity, accounted for the largest portion, increasing crude petroleum output by 27 % to almost 3 billion barrels.

Jan 1, 1993

By Keith L. Harris

The economy continued to expand during the second quarter, but at a much slower pace than expected. According to latest estimates released by the Department of Commerce, the real gross national product (GNP) grew at a seasonally adjusted annual rate of 0.6% compared with a revised growth rate of 3.8%2 for the first quarter of 1986 and 2.3% for the second quarter of 1985 (table 1). The strong growth of personal consumption expenditures, Government purchases of goods and services, and residential investment was moderated by the growing trade deficit, declining investment in business inventories, and the continuing lag in nonresidential investment. Much of the decreased capital spending for the nonresidential sector for the first and second quarters resulted from reduced petroleum exploration and drilling in response to low petroleum prices. Capital spending and trade continue to be areas of weakness for the economy. Real new plant and equipment expenditures for 1986 are estimated to be 1.3% below those of 1985 (table 2). Real net exports of goods and services decreased $24.6 billion, as exports declined 5.6% and imports grew 16.5%. About two-thirds of the $19.3 billion increase in imports was in petroleum and petroleum products, which, because of their lower prices, should help the economy in the future. In response to the sluggishness of the economy, the Federal Reserve System reduced its discount rate from 6.5% to 6% in early July. Inflation, as measured by the fixed-weighted GNP price index, declined from a revised 2.5% in the first quarter to 1.9% in the second quarter because of significantly lower energy prices.

Jan 1, 1986