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By P McCarthy

"This paper is based on 30 years of involvement in feasibility studies as a participant, study manager and the leader of a firm that provides study components and overall study management. The following topics are discussed:the purpose of feasibility studiesaligning the goals of the study team with those of the ownerthe difference between optimisation and designhow the types and levels of studies affect the organisation of the studythe relative merits of various management structures and contractual arrangementssetting scopes of work and tendering the work outthe selection of a study manager and the study management teamcommunications within the study team and externallythe project management trianglemanaging scope changes and maintaining flexibility to respond to study findingsprogress paymentsmanaging a study crisisinnovation, risk aversion and bankabilityreporting the resultsthe dangers and benefits of value engineering.CITATION:McCarthy, P, 2016. Making studies work – organisation, communication and management, in Proceedings Project Evaluation 2016, pp 20–30 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By Lee W. Saperstien

At the heart of the mining process are a number of basic and fundamental tasks whose regular and repeated performance constitute the mining cycle. As will be discussed presently, these tasks are the basic components of the mining system. Section 9, Production Operations, provides the mine designer and engineer with an understanding of these tasks and with sufficient design principles to allow this person to create an efficient mine system. This section is meant to be an introduction and adjunct to subsequent sections that describe specific mining systems. However, sufficient design information is included here for the independent design of mine systems that may not be described elsewhere or for subsequent verification of existing designs. For the purposes of this section, mining subsumes excavation; thus this material applies to any excavation process. Accordingly, this section is written in general enough terms to include both surface and underground mining. It may be used also for civil engineering excavations that often involve the same steps. Obviously, the actual procedures undertaken in any specific mining system will appear to be very different from those taken in any other system. This is certainly true when comparing surface with underground methods. Yet the fundamental principles are often the same. This segment is written to explicate the basics. Wherever appropriate, the section will suggest the differences between the application process to surface or to underground mining.

Jan 1, 2008

By W J. Haylock, K Wasiel

PX4 Software Pty Ltd is a Brisbane-based company, which specialises in providing tenement management software to mining and exploration teams operating in Australia and several international jurisdictions, including the United States, Africa, and Canada. Whilst the company is experiencing substantial growth due to a demand from both the minerals and mining technology sector, there is a crucial gap in the market for critical minerals, which will be required to achieve the net-zero emissions goal set by the Paris Agreement for 2050. To help understand and address the technology gap identified by the unprecedented demand, PX4 Software undertook the Annual Survey of Technological Transformation in the Exploration Industry. This survey involved interviews with 12 very distinguished subject matter experts in the fields of Geoscience and Geology from across the globe. From this survey, we have defined eight major categories of exploration technologies. Notably, the most transformative of these technologies over the past 65 years falls into the Geophysical Methodology category, specifically focusing on image and signal processing of both airborne and downhole data. Advances in computing power during this period have significantly improved data processing quality, enhancing orebody modelling, and targeting. This has had a profound impact on the industry. Moreover, the survey reveals that future transformative technologies are expected to centre on the automation of existing processes through AI and Machine Learning techniques. This is expected to help facilitate the identification of critical mineral systems and thus enable the exploration industry to make more informed decisions based on data analysis using Machine Learning and AI.

Sep 1, 2024

By Ram V. Ramachandran

As an industry with major potential impacts (both good and bad) on water resources and due to the rising costs of process water, the mining and metallurgical processing industry has a key responsibility to contribute to the overall goal of preserving both the quantity and quality of water available within the watersheds they operate in. As we plan for new and existing mining and metallurgical projects, we need to consider a hierarchy of options to minimize our impact within the watersheds we operate; keeping clean water clean by diverting around our operations; reduction in the amount of water we use; reuse of water wherever possible, and improvements to water quality for recycling and/or release to environment. Technology is needed to treat water to improve its quality for reuse or release to the original watershed. While lime precipitation followed by sulfide polishing is effective for removal of most of the metals, it does little or nothing to remove ammonium ions and anions such as chloride, nitrate, molybdate, arsenate and selenite/selenite. Regulations on sulfate limits in treated discharge water has drawn close attention to the treatment of acid mine drainage (AMD). Management of brine and salt disposal is also posing a problem due to strict regulations and cost of disposal. This paper will: (a) address issues associated with managing water with the objective of maintaining water sheds—status quo-during and after operation (b) discuss potential technologies for advanced water treatment plants.

By Ernesto Furtado de Mello Neto, Eliezer Thuler, Claudio Vano Nunes, Carlos Alberto Cristofari

The Brazilian steel industry is dealing an adverse scenario with direct competition from global emerging markets. In this scenario, the need to improve asset operational performance, makes complex studies involving technical knowledge and asset life behavior, become important tools to support companies strategic accomplish. These studies allow consider performance, costs and operational risks relationship in the decision make process. The Asset Management approach support these studies in order to observe the whole asset life cycle, understand value chain through all company process and optimize the asset economic life. In this context, the present technical work has the purpose to support asset management decision making regarding ArcelorMittal Vega cold rolling drive motors, through the motors fail behavior modelling and estimated the risks involved in asset management decision. Through the Reliability, Availability and Mantenability (RAM) analysis, simulations were performed considering the failure, repair cost data and investments to build options to mitigate the operational risks.

Oct 9, 2019

By P. Kostuik

"Recent interest in the pipeline transport of solid mate-als has been sparked by the idea that, in an inflationary onomy, pipeline costs are more stable than the costs of any other transport systems. Pipelines have proved over 1e years to be dependable, records indicate that main-•nance and operating costs are comparatively low, and 1eir amenability to automation is of considerable im->rtance.The concept of hydraulic hoisting of solids from under-round, or cross-country hydraulic transportation of con-~ntrates and ores, is currently of prime interest to the ining industry. In general, this paper deals with a preliminary investi-ation of energy losses incurred while transporting a rela-vely heavy, crushed mine product, namely magnetite, oth vertically and horizontally. The basis and validity of everal equations derived by other experimenters to com-ute these losses is discussed. A theoretical analysis of ydraulic hoi:,,ting is made, and, based upon test results, calculation of horsepower requirements for hoisting an re under a given set of conditions is presented. Results indicate that:n vertical transport, the friction head losses are identical to those of clear water, and the total energy requirement for hydraulic hoisting then becomes a function of height of lift, concentration and specific gravity of the solids being hoisted. .-In horizontal transport, friction head losses can be calculated with reasonable accuracy using Bonning-ton's correlation curve. Losses computed utilizing Durand's correlation (K = 85) result in estimates which are too low by 10 to 30 per cent, an<l those calculated using Newitt's correlation (K = 1,100, K = 66) give friction loss values which are too high by 10 to 30 per cent . . -The theoretical horsepower (RMS-hp.) required for hoisting hydraulically is approximately half of that required for conventional double-drum skip hoisting."

Jan 1, 1966

By Douglas Muir, Chas. A. Chase

The Aztec mine is not widely known, by reason of its isolation and the relative insignificance of its tonnage; financially, however, it has an enviable record and geologically it is extremely interesting. The town of Baldy, Colfax County, the mine camp, at an elevation of 10,000 ft. (3048 m.) is 8 mi. west of Ute Park, the terminus of a branch of the A. T. & S. I?. Ry. The mining tract was designated by the Maxwell Land Grant Co. as the Aztec Reservation, and lies on the east slope of Mt. Baldy, the summit of which, 12,491 ft. (3807 m.), is one of the highest in the state. Rich copper float was found on the northeast slope of the mountain in 1865, and discovery work was begun the next year. At the same time, gold placers were found on Willow Creek, on the southwest side of the mountain, and the Elizabethtown settlement followed shortly. Gold washing lasted many years. In 1867, placer gold was found also on Ute Creek, the tracing of which to its source led to the locating of the Aztec mine by Lynch, Dogherty, and Fosley in the following year. The early production came from the contact of shale and sandstone or from sandstone immediately above the contact. Exact record of production is lacking, but L. C. Gratonl gives estimates ranging between $1,250,000 and $1,500,000, of which about $1,000,000 was taken out in the first four years. After the exhaustion of the early bonanza, production continued intermittently until 1909, when the Maxwell Land Grant Co, undertook systematic development, through four adits at intervals of 75 ft. vertically or approximately 100 ft. on the dip of the contact, which was thought to contain generally a quartz-pyrite vein. The two intermediate adit? almost immediately reached ore, the most southeasterly in Fig. 2. This ore, however, was not mined until 1911-12; its grade was about $20 and

Jan 1, 1923

By Douglas Muir, Chas. A. Chase

The Aztec mine is not widely known, by reason of its isolation and the relative insignificance of its tonnage; financially, however, it has an enviable record and geologically it is extremely interesting. The town of Baldy, Colfax County, the mine camp, at an elevation of 10,000 ft. (3048 m.) is 8 mi. west of Ute Park, the terminus of a branch of the A. T. & S. I?. Ry. The mining tract was designated by the Maxwell Land Grant Co. as the Aztec Reservation, and lies on the east slope of Mt. Baldy, the summit of which, 12,491 ft. (3807 m.), is one of the highest in the state. Rich copper float was found on the northeast slope of the mountain in 1865, and discovery work was begun the next year. At the same time, gold placers were found on Willow Creek, on the southwest side of the mountain, and the Elizabethtown settlement followed shortly. Gold washing lasted many years. In 1867, placer gold was found also on Ute Creek, the tracing of which to its source led to the locating of the Aztec mine by Lynch, Dogherty, and Fosley in the following year. The early production came from the contact of shale and sandstone or from sandstone immediately above the contact. Exact record of production is lacking, but L. C. Gratonl gives estimates ranging between $1,250,000 and $1,500,000, of which about $1,000,000 was taken out in the first four years. After the exhaustion of the early bonanza, production continued intermittently until 1909, when the Maxwell Land Grant Co, undertook systematic development, through four adits at intervals of 75 ft. vertically or approximately 100 ft. on the dip of the contact, which was thought to contain generally a quartz-pyrite vein. The two intermediate adit? almost immediately reached ore, the most southeasterly in Fig. 2. This ore, however, was not mined until 1911-12; its grade was about $20 and

Jan 1, 1923

By A. Y. Smith, R. J. Allan, E. H. W. Hornbrook, R. W. Boyle, W. Dyck

"HYDROGEOCHEMICAL METHODS in the Canadian Shield can be based on analyses of the following :(1) spring waters and their precipitates;(2) stream and river waters;(3) lake and muskeg waters;( 4) ground waters from drill holes, wells, faults, etc.;(5) waters issuing from diamond drill holes, faults, shear zones, etc. into mine workings and open pits; also analyses of precipitates associated With these waters.The first four can be utilized in both reconnaissance and detailed surveys. The last is suitable only for detailed work.For hydrogeochemical methods of prospecting to be effective, the following conditions must be present. 1. Natural waters must come into contact with mineral deposits and remain in contact with them long enough for the solution of detectible amounts of ore, gangue or indicator elements. 2. Dispersion patterns must be present in the hydrologic systems in order to trace the elements back to their source. These patterns may take the form of trains (e.g., increasing amounts of elements upstream toward t he source (s), Figure 1 ) or halos (e.g., increasing amounts of elements in bodies of water toward the source (s), F igures 2 and 3)."

Jan 1, 1971

By Michael Cruickshank

All life on Earth relies on the ocean and yet the ocean is 95 percent unexplored, unknown and unseen by human eyes,? said Paula Keener, director of education programs for National Oceanic and Atmospheric Administration?s (NOAA) Office of Ocean Exploration and Research. ?To better understand, manage and protect the ocean and its resources, NOAA believes it is critical to use the best technology to explore, discover, inform, educate and motivate? (MTS, newsletter, January 2011). In the last few decades, our understanding of the global mineral resource base has been drastically changed by some surprising new developments. The potential for commercial minerals per unit area in the oceans and seabed appears to be similar to that of the terrestrial lands. Thus, almost three-fourths of the global mineral resources are in, or under, the sea and are virtually undeveloped. The area of the Pacific seabeds alone is greater than the total area of the global lands. Half of the global seabed minerals are now controlled by nation states within their Exclusive Economic Zones (EEZ). The other half is controlled by the United Nations (UN) through the International Seabed Authority (ISA) within the ?areas beyond national jurisdiction? known as The Area. Thus, the Law of the Sea, ratified in 1994, has resulted in the largest transfer of control of natural resources in the history of mankind. This paper was prepared by the Society for Mining, Metallurgy and Exploration (SME) Committee on the Offshore Technology Conference for the SME Board of Directors and other interested parties. As the premier professional society for the mining and mineral community in the United States, with a history dating back to the 19th century, SME?s mission is to encourage and support young men and women engineers in the minerals industry, provide the services they need, improve the image of the industry, strengthen the networking among global industry professionals and engage in proactive collaboration among industry, government, academia and nongovernmental organizations (NGOs). The accomplishment of this mission can be strongly advanced by highlighting what is probably now the most significant development in the history of the modern minerals industry - the exploration of the marine environment and the understanding of the potential for the development of the minerals therein.

Jan 1, 2011

By W. H. Yarroll

This paper presents a general discussion of the utility of the statistical technique known as multiple correlation, and gives three specific examples of its application. The first demonstrates the most simple form, or straight-line, multiple correlation. The other two demonstrate multiple correlation analysis in best-fitting third-degree parabolas. With the increasing availability of digital computers, the method becomes entirely feasible where heretofore its use was impractical. The advantages of the method are discussed, and curves are presented which were developed by computerizing the regression equations developed in the examples. The method described in this paper is for use with complex systems, and the examples given are complex metallurgical systems. This subject falls under the general classification of cybernetics, which is defined&apos; as "the science of control and communication, in the animal and the machine." Machine, in this case, can include chemical and physical processes which take place within machines and processing equipment of all kinds. The classical approach to scientific investigation has been the construction of simple models and the changing of variables one at a time. This method is wholly inadequate for obtaining useful information from the complex systems of modern technology including many of our flotation and hydrometallurgical processes. Cybernetics offers the method by which complex systems which have been implemented as an art in the past can now be analyzed with all the discipline of a science. Mathematical techniques for achieving multiple correlation analysis have decided advantages over some of the other statistical methods.2-4 Multiple correlation does not require a series of experiments that have been rigidly planned as do many of the other statistical methods. For this reason, it can be used effectively for interpretation of information from op- erating plants, where planned experiments are impractical, as well as for laboratory experiments. First-degree multiple correlation has been used for many years, and was useful, but limited to linear or nearly linear relationships. The technique described in this paper provides a method for analyzing systems which may be non-linear. This particular technique is multiple correlation analysis in best-fitting third-degree parabolas. It is quite possible that lack of reference to the technique has been due to the overwhelming mass of computations it requires even for relatively simple problems. With the advent of computers, however, its use has become entirely feasible. For the benefit of those who may not be familiar with the subject, it might be well to pause at this point to discuss multiple correlation analysis — what it is and what it achieves. To go back to the old familiar fitting of a set of points with a best-fitting straight line by the least squares procedure, it is conceded that this a good method where there is only one independent variable influencing the dependent variable under consideration, and providing that the relationship is linear. In most fields of investigation, however, there are usually a number of factors exerting important influence, and they frequently bear relationships with the dependent variable other than straight line. Under these conditions, it is easy to see how misleading a simple correlation study might be. Multiple correlation can be used for any number of variables. Within the experience of the writer, this technique has been used to establish regression equations for determination of carbon rate, burden permeability, and production rate on iron blast furnaces, production rate on open hearth steel furnaces, life of molds for steel ingots, rolled steel tensile strength and various defects in rolled products, the performance of ore dressing equipment, and optimization of extractive metallurgical process variables. The discovery of mathematical correlation does not prove, per se, true cause-and-effect relationship, but simply establishes a hypothesis. If the regression equation can be used to make successful predictions of what will happen with future arrays of independent variables, then one can feel reasonably assured that true cause-and-effect relationships have been discovered.

Jan 1, 1968

By Camilo Uribe, Williams Calderón, Gonzalo Montes-Atenas

In industrial hydrometallurgical operations, the leaching process is often implemented via heap or dump leaching operations. During the pile up of these massive amounts particles a porous material is then formed. The manner it is constructed is crucial since it will define the permeability and other parameters determining the flowrate of leaching solution across the material. This study aims to estimate how the unsaturated permeability of the staked porous structure confined in a column-like geometry varies with and without particle size segregation. The piling up will be modeled using the Rocky® software. Different disposals of particle size distributions across the column will be simulated and their effect onto the overall column unsaturated permeability will be estimated. It was found that when the belt speed increased, the particle segregation in the column also increased. This condition is expected to improve the permeability of the porous structure in the column, probably due to the smaller compaction of larger particles when they are located at the base of the column and maintain a suitable porosity to permit leaching flowrates relatively high, suggesting better extraction results. The opposite was observed when small particles were preferentially located at the bottom of the column. These results are expected to provide an insight towards what is the best way to construct heaps and dumps.

Jan 1, 2014

By Michael K. Phang

The use of explosives to fragment rock generates ground vibrations which may have a detrimental effect on contiguous underground coal mine openings. Increased surface blasting by a burgeoning number of surface coal mines and quarries has caused considerable concern among underground mine operators. Ground vibration effects generated from surface mine blasting are also causing public concern. In response to this concern, the U.S. Bureau of Mines (Stagg and Engler, 1980) has measured and analyzed ground vibrations and their effects on underground and surface structures. Some of the complaints registered against the mining industry are claims of substantial material damage from vibrations generated by the blasting; others are nuisance complaints of minor damage or annoyance. In general, allegations of damage from surface blasting have been sufficiently numerous to constitute a major problem for mine operators engaged in blasting operations. They have recognized the need for more technological data to evaluate the vibration problems associated with blasting. Both the operators and the general public need adequate safeguards based upon factual data to protect their specific interests. The coal mine industry needs reliable information from which to change blasting operations to reduce the number and severity of major damage claims and eliminate the growing number of nuisance complaints. The problem is of major concern not only to coal mine operators and nearby property owners, but also to federal, state and local governments. At the same time, environmental control agencies responsible for blasting and explosives use require reasonable and appropriate guidelines to protect the miners&apos; lives.

Jan 1, 1984

By J. W. R. Rayner

THE conventional method of making water gas involves individual plants for the separate carbonization of coal to coke and the subsequent gasification of coke with steam. The process demands lump coke, preferably made from the best quality of coking coals. The ash in the coke should have a high melting point and the gasification process suffers a loss of efficiency when cokes with low ash-melting points are used. In Britain, these coals are generally the most expensive and they are readily available only in certain localities. The coals not suitable for making lump coke, or yielding only poor quality coke, are much more widely available and are generally cheaper. DEVELOPMENT OF ALTERNATIVE PROCESSES In Germany, processes have been developed and operated commercially for the production of water gas from very low-rank coals such as brown coal and lignites, but much less effort has been spent on processes to use coals of intermediate rank, which are widely available in Britain. The brown-coal processes use coal in the form of either dust or briquettes. The most successful of the dust-gasification methods is the Winkler process, which made a substantial contribution to German oil production during the war. It uses coal in the size range 0 to 8 mm and the fuel bed is blown with a mixture of oxygen and steam at a rate high enough to give it a characteristic boiling motion or, in present-day phraseology, at a rate more than sufficient to fluidize it (Fig. 1). Air cannot be used to provide the heat required for gasification, for vari¬ous reasons. In the first place, to make the process continuous by mixing air and steam would involve the production of a lean gas containing much nitrogen. If a separate blow were used, a large amount of potential heat would be lost because the blow gas in such a process would contain a very high percentage of carbon monoxide. Oxygen is necessary therefore and oxygen remains relatively expensive for use in gasification. In the Winkler generator, formation of clinker caused by local overheating does not occur, because of the mobility and high heat transfer of a fluidized bed. These properties of fluidized dusts have been used most successfully.

Jan 1, 1953

AN unprecedented expansion of the mineral industries began in mid-1950. There are few minerals on the strategic list for which some source of supply here at home has not been found. All types of inducements have been utilized, ranging from RFC loans to guaranteed-price purchase contracts. No one can deny that tremendous progress toward mineral self-sufficiency has been made. Despite the greatness of these accomplishments, made&apos; in the name of national defense, one cannot help but. have a feeling of uneasiness over the price which has been paid-in indebtedness, in freedom, and in the sacrifice of private enterprise. The people of the Soviet have been enslaved by a military state which attempts complete control of the economy. A similar yoke has been imposed on the business life of this nation. Of course, there is a difference in degree of control and in purpose. We are dedicated toward defense and the resistance of aggression. And, our personal liberties have not been usurped. The realization of the extent to which this nation has been forced by Communist aggression to adopt the practices of the socialized state is appalling.

Jan 1, 1952

"Investment in diamond exploration has been declining over the past decade, in spite of positive long-term industry fundamentals and a growing interest in diamonds as an investment category. The lack of new significant discoveries in recent years has eroded investor confidence, yet no new discoveries are possible without investment in exploration. Junior ‘mine finders’ have been the hardest hit. Their agility, tenacity, and appetite for risk are not sufficient to attract the funding required, even at the greenfield stage. Developing new discoveries into mineral resources can be crippling without solid financial support. Junior incubators could play a crucial role, especially at the project evaluation stage – but where are they? Alternatives to traditional funding mechanisms have become available, many still untested in the junior diamond exploration space. Valuable lessons can be drawn from the past and used to inform emerging new strategies. IntroductionDiamonds are the ultimate expression of love. Their ancient and timeless allure continues to influence consumer emotions and behaviours across continents, cultures and age groups. Analysts are predicting a sustained supplydemand shortfall in the years ahead which will trend diamond prices generally upwards. With positive long-term industry fundamentals, one cannot help but wonder why funding for diamond exploration and development projects is so scarce.Investment in exploration across commodities – including diamonds – has been declining for a number of years, reaching a historic eleven-year low early in 2017. The lack of major diamond discoveries in recent years has done little to strengthen the case for investing in diamond projects, yet no new discoveries can be made without investment in exploration.Global estimates of known carats in the ground stand currently at 2.5 billion carats, which equates to around 18 years of production at current levels of 140 million carats (mct) per annum. Sustainable replenishment of depleting diamond resources is possible only through the development of new discoveries. This is what junior explorers are best at – but they need investors to fund their evaluation activities from early in the project development continuum."

Feb 1, 2019

By J. T. Crawford

Although nearly 10 pct of the total tonnage of coal produced annually within the United States is handled by bulk freighters on the Great Lakes, very little of the detail connected with it has been published other than occasional newspaper stories and publication of tonnage statistics. Of the total tonnage floated on the Lakes each year some 10,000,000 is stored and distributed from the port of Duluth-Superior, at the western end of Lake Superior commonly known as the Head of the Lakes. This port has the largest single area concentration of coal docks in the world. Since this area contains the largest ore docks, the largest movable material handling bridge, the largest and highest grain elevator and the largest coal bri-quetting plant in the world, it is entirely fitting and proper that here also should be located the largest coal dock and what we believe to be the world&apos;s largest clam shell. Of the sixteen coal docks operated by ten companies, five are owned and operated by the North Western-Hanna Fuel Co. which has two docks on the Superior, Wis., waterfront and three docks in Duluth, Minn. It is with these five docks that we are primarily concerned, General History In the summer of 1871 a small sailing vessel entered the harbor of Duluth-Superior with the first commercial coal cargo. All the coal brought up that first year did not amount to more than 3000 tons. During the year 1877 the first dock equipped for handling coal was built in Duluth. Coal receipts increased to 52,785 tons in 1879 the first year for which an official record was kept. Since then the volume of water-borne coal to the Head of the Lakes steadily increased to a maximum of 12,688,321 tons in the year 1923. This tonnage was nearly equalled in the year 1927 and the next highest tonnage recent year was in 1946 when 10,105,703 tons were unloaded. The average annual bring-up over a ten year period 1938 to 1947 was 8,605,231 tons. Approximately 30 pct of the coal unloaded at the Head of the Lakes is handled over the docks of the North Western-Hanna Fuel Co. Competition of other fuels coupled with expansion of coal fields in the mid-west have held coal receipts for Duluth-Superior at a relatively constant figure during the last eight years although the total tonnage of coal floated on the Great Lakes has more than doubled in the past 25 years. From the shovel and wheelbarrow method of unloading early cargoes to the horsepowered windlass derrick with a wooden tub was but a short step. The first movable coal handling, steam operated,

Jan 1, 1949

By C. B. Piazzarollo

Ceramic materials exhibit dispersion results after being subjected to various levels of stress, from the point of view of mechanical strength. With the focus on sustainable development and to improve the strength of these material, was incorporated ornamental rock waste into clay in up to 10% in mass to conform some samples, that was fired to 750ºC, 850ºC and 950ºC and submitted to technological tests. This paper presents an analysis of the technological properties of the samples through the use of Weibull statistic to determine which the best firing temperature for these red ceramic materials. The Weibull Modulus indicates a greater homogeneity for samples with 10R at 950ºC.

Jan 1, 2015

By Martin B. Zimmerman

It is becoming evident that traditional methods of econometric analysis are inadequate in estimating-the long-run supply of minerals. Econometrics is limited to extracting estimates from observations of the theory predicts that the least cost deposits will be exploited first.1 The estimation of parameters from past data then must lead to biased projections of the future. Mining conditions in the future will be worse than in the past and it is the impact of the future conditions on cost that we need to know. In this paper we present a methodology for dealing with this problem. We estimate a "cumulative cost" function that yields the long-run marginal cost of mining as a function of cumulative output produced over time.2 This is relatively easy to do for coal mining in the United States where exploration for new deposits is not a major factor in supply. The first step of the procedure relates cost to the rate of output and to the geological conditions of the mine. The second step combines geological information on remaining deposits with the cost function to yield the cumulative cost function. A central theme of both these steps is the interaction of economics with geology. The best deposits are selected first and in each step of the estimation allowance must be made for this fact. The problem of depletion is part of the general problem of structural change. The change through depletion in the nature of the exploitable mineral stock is only one factor that calls for an analysis sensitive to the changing circumstances of the industry. The factors impinging most heavily on the coal industry today are the strict environmental regulations legislated

Jan 1, 1977

By ROBERT E. HARDWICKE

THE QUESTION of whether the production of oil should be limited to market demand has been constantly discussed during the last two years. Oil men, legislatures and courts have reached highly conflicting conclusions. Opponents of limitation to market demand assert that it is a scheme of the big purchasing companies to fix prices and to create a monopoly. Proponents, on the other hand, declare that such a limitation is necessary to prevent physical waste and that the effect on prices is merely incidental. A brief review of market demand legislation will disclose the confusion existing. The laws of Oklahoma,&apos; prohibiting waste of oil and gas, specifically&apos; authorize limitation to market demand as a method of preventink such waste. These laws and the proration orders based thereon have been upheld by the Supreme Court of Oklahoma, by several three-judge Federal District Courts, and by the Supreme Court of the United States.&apos; Kansas has a similar law3 but no case has been found which discusses its validity. About a year ago the California Legislature passed a comprehensive conservation act, generally known as the Sharkey Bill giving authority to restrict production to an amount representing current requirements for use, taking into consideration oil and products in storage. This may be considered as equivalent to limitation to market demand. The Act was defeated upon referendum vote after a hard fought campaign in which it was charged that the Act would result in destruction of the independent operators.

Jan 1, 1932