Search Documents

By Mara Kosovac, Sujan K. Kundu

The Iron Ore Co. of Canada (IOC) has developed a computerized plan analysis method for its open-pit iron mining operations which will eliminate much of the tedious manual drafting of pit design plans performed by engineers and geologists at its two major operational areas near Schefferville, Que., and Labrador City, Nfld. The new technique permits analysis of section or bench plans for a specific ore body, based on drillhole information; preparation of a three-dimensional unit profit matrix for pit design purposes, and storage of extensive ore-block information for other applications. Other advantages include enhanced design accuracy through reduction of human errors normally associated with preparation of large data masses, and by elimination of errors inherent in planimeter-prepared ore block diagrams.

Jan 7, 1978

By Herbert H. Einstein

Swelling ground is one of the most feared problem in tunneling. Although usually not causing sudden failures during construction, the very large and long- lasting deformations give contractors and designers the impression of facing an inevitable phenomenon against which there is no technical defense. Examples are concrete liners of up to 1 m that have been cracked or crushed, tunnel inverts that are heaving at a rate of 0.1 m per week during construction and continue to heave during decades. This author (Einstein (1979). Einstein et al. (1972) (1975)) and others (Huller (19761, Grob (1972) (1976). Golta (1967), tienke (19761, Krause (1976). Lee et al. (1976)) have described many cases of swelling tunnels that illustrate the significance and magnitude of the problem. This paper intends to show that tunnels in swelling rock can be built to perform satisfactorily. . For this purpose the tunnel builder needs to know how to determine the existence and specific behavior of swelling ground, how to select appropriate structural characteristics of the tunnel and predict its performance under the specific ground conditions, and finally how to construct the tunnel such that the anticipated performance will be achieved. This concept of a design-construction procedure is the same as that for tunneling in general; it is mentioned here for NO reasons: 1. To point out that design and construction cannot and should not be separated. The way in which the tunnel will be built has to be an integral part of the design. 2. This paper will be structured corresponding to the procedural concept.

Jan 1, 1981

By Oliver C. Ralston, Foster Fraas

The electrostatic separation of solids utilizes the forces exerted when electrically charged particles of the solids are present in an electric field . The charges may be acquired by various means (5) , and when the acquisition or loss of charge depends on the property of the particle , separation can be obtained between particles having different properties . A property commonly utilized in present - day separators in conductance . Charging also may be accomplished by bringing the particles into intimate contact with various surfaces . This is sometimes described as a " frictional electrical effect. The charge , or specifically the polarity of the charge , in this latter case evidently depends on the property known as the contact potential , as has been explained in the discussion of a paper (7) and in several other papers (10) . Separation by this method is accomplished in two steps - a charging step , in which the particles are brought into intimate contact with an electrification surface , and a separation step , in which the charged particles are separated in an intense electric field . Descriptions of such methods may be found in the literature (2) , (7) , ( 8) . Even as early as 1909 , Blake and Morscher (2) described the charging of particles by intimate contact followed by separation in an electric field . They also state that the polarity of the electrical charge acquired by the particles depends on their composition . O'Brien ( 8) presented several designs of apparatus . He obtained electrification by means of a wiping action , either on inclined plates or in rotating cups , in which a centrifugal force was imparted to the particles .

Nov 1, 1942

By T. W. Turk, S. A. Sass

The engineering design features of the Mercur Gold Project crushing, grinding, carbon-in-leach, bullion, reagent, and tailings disposal areas will be discussed in this paper. It presents a project overview and flowsheet along with selected design alternatives. During the engineering phase, major equipment and other features were selected to optimize design within site location and environmental constraints. The project team organization and procedures were adopted to accommodate multiple optimization studies while maintaining a tight engineering schedule.

Jan 1, 1985

By Robert C. Freas

Dravo Lime Company has opened a new 290m (940 ft.) deep lime-stone mine near Maysville, Kentucky. As the mine was opened there were many unknowns as to the stress relationships within the rock, and their influence, if any, on the selected mining method. Therefore, a system of overlay geologic and structural maps, borehold extenso-meter measurements, and oriented photography was developed for the purposes of monitoring the internal structural relationships of the rock mass. This paper presents a description of the methods used, the observations made, and the conclusions and recommendations made as a result of the initial monitoring program.

Jan 1, 1977

By Richard C. Marshall

The heightened concern over the environment which has developed in recent years has caused activities on National Forest lands to come under more intense public scrutiny. This has been especially true for activities oriented toward the production of commodities. Cattle grazing, mining, timber harvesting, and oil and gas leasing and drilling have all been increasingly subject to appeal and litigation. As a result, environmental analyses being conducted by the Forest Service have become more comprehensive, and measures to reduce or eliminate adverse impacts on resources have been given more attention. The costs of such environmental mitigation measures can be significant even when viewed in the context of the millions of dollars a company may spend, for example, to develop a mine. Using the Montanore Project in northwestern Montana as a case study, this paper examines the costs of alleviating some of the detrimental effects which may occur as a result of a mining operation. Although many of the general issues that have been raised about Montanore are common to other mineral projects, the scale of the project, as well as the fact that the ore body is within a wilderness area, the site is in grizzly bear habitat, and the surface waters are considered to be pristine, all combine to make Montanore particularly challenging from an environ- mental standpoint. Much of the information which follows is contained in the most recent version of the Draft Environmental Impact Statement (DEIS) which is scheduled to be published in several weeks. Based on agency and public comments, some of the information presented in the paper will change before the Final Environmental Impact Statement is issued in 1991.

Jan 1, 1991

By M. Eraydin

Dewatering fine particles (e.g., flotation concentrates) is inefficient, energy intensive and often requires large capital and operating costs. To address these issues, a series of advanced dewatering technologies have been developed at Virginia Tech. These include novel dewatering aids and a hyperbaric centrifuge. Typically, the moistures obtained using these methods are 30% to 50% lower than those obtained using conventional methods, as demonstrated in laboratory and pilot-scale test programs. With another novel dewatering technology that has been tested in bench-scale tests, the moistures can be reduced to levels once believed to be attainable only through the use of thermal dryers. In this communication, test results obtained with these advanced dewatering technologies are presented and compared.

Jan 1, 2014

By John C. Bowling

Many recent mine developments in North America are located in remote northern regions with extreme winter temperatures in the range of -20oF to -60°F. In addition, many locations are subject to very heavy snowfall. This paper discusses some of the key considerations in the planning and design of mine plant buildings, particularly concentrators, located in these regions. SUMMARY & CONCLUSIONS The subject is considered under three main headings: I. Building Out line and Structural Frame 2. Wall and Roof Materials 3. Foundations The plan outline of a mine plant building will naturally be governed by the scope and layout of the process equipment it contains. The selection of roof profile, on the other hand, will generally depend upon a number of factors extraneous to the process e.g. snow conditions. When these factors are considered for concentrators in cold locations, a flat or stepped roof will usually be more economical and suitable than a sloping roof. The materials normally used for the structural framework of concentrators are the same as used for other industrial buildings, namely steel, concrete and wood. Structural steel, however, is the most commonly used material for concentrators in

Jan 1, 1971

By Lon Santis

This paper analyzes 110 serious accidents that occurred during the use of commercial explosives in mining, construction, and other industries since 1992. Data from the Mine Safety and Health Administration (MSHA), the Institute of Makers of Explosives (IME) members’ reports, and media reports were used. Only accidents that resulted in a fatality, significant lost work time, or injury to the public were considered in this analysis. The accident data were analyzed for trends in frequency, type of industry, cause, type of individual harmed, and geographical region. Although the data showed that explosives accidents are decreasing in frequency, still, 29 people were killed and 134 injured. Eightyfive of the accidents occurred in mining, 17 occurred in construction, and 8 occurred in other industries including oil recovery, seismic exploration, agriculture, logging, boiler cleaning, and avalanche blasting. As other studies have shown, flyrock and failure of blast area security caused over half of the accidents. Mishandling, misfires, or fumes caused just over one-third of the accidents. Lightning and drilling into explosives were responsible for the remainder of accidents.

Jan 1, 2003

Located 19 km (12 miles) north of the Carlin gold mine and 43 km (27 miles) north of Carlin, Nevada, is Carlin Gold Mining Company's Bootstrap mine. This deposit is similar in character to the Carlin ore, except it occurs in the upper plate formation of the Roberts thrust fault rather than in the lower plate rocks. The deposit was discovered over 50 years ago and operated on a small scale in the early 1960s using vat cyanide leaching. Newmont Mining Corporation acquired the property in 1967, and from an open pit mined 650,000 mt (717,000 st) of ore which was trucked to the Carlin conventional cyanide plant. (See Gold and Silver Cyanidation Plant Practice by F. W. McQuiston, Jr. and R. S. Shoemaker, Society of Mining Engineers, AIME, 1975. ) With the same grade of ore, the gold recovery by conventional methods is somewhat lower than that of the Carlin ore, even with a finer grind. Leaching tests were first conducted by the United States Bureau of Mines in 1968; and in 1971, ‘72, Carlin conducted extensive cyanidation investigations by bottle testing, simulated heap leaching in tall columns, and small scale pad heap leaches. Gold extractions ranged from 55% to 95% with low reagent consumptions. In 1974, a 545 mt (600 st) heap leach test was made at Carlin on pit-run low-grade material assaying 1.37 g per mt (0.04 oz per st). In a six week period the extraction of gold was 47.57'0. Carlin uses atomic absorption analyses on cyanide leach liquors to determine potential leach ore grade rather than fire assaying because it gives a more practical assessment of leach recovery than does fire assaying, which accounts for the total gold content. Before open-pit mining was started, plans were made to heap leach, the ore at Bootstrap which was too low grade for transport to Carlin. The topsoil outside of the designed pit area overlaid ancient lakebed clays which were found suitable for compaction to form an impervious base on which the dumps to be leached could be placed. By using the cost of truck haulage and milling at the Carlin plant and the price of gold 'at that time, a cutoff grade was established which resulted in the gold content of the first 150,000 mt (165,000 st) of the heap leaching ore being 1.51 g per mt (0.044 oz per st). An additional 500,000 mt (552,000 st) of lower grade material, assaying 0.96 g per mt (0.028 oz per st), is available for leaching as economics permit.

Jan 1, 1981

By Alla D. Mah

Titanium forms several compounds with oxygen and also is able to dissolve interstitially about 33 atomic percent of oxygen. Starting with titanium dioxide, reduction becomes increasingly difficult as oxygen is removed; and the final step, be reduction of the titanium-oxygen interstitial solutions, is by far the most difficult. The possibility of reducing titanium oxide, or of purifying titanium containing oxygen, by treatment with certain more volatile metals has been a subject of considerable interest. Theoretical appraisal of the limitations of this possibility, however, has been hampered by lack of adequate information on the thermodynamic properties of the titanium-oxygen solutions. The purpose of the present work was to remedy this difficulty by expanding the thermodynamic knowledge regarding these solutions. The experimental work involved three types of calorimetry and furnished the following information: (1) Heats of formation of 11 titanium-oxygen solutions, in the range of 0 to 10 wt.-percent oxygen, were determined at 298.15° K. As a byproduct, an improved value of the heat of formation of rutile was obtained, which, in turn, led to improved values of the heats of formation of the lower titanium-oxygen compounds. (2) Low-temperature heat-capacity data and entropies at 298.15°K in were determined for 2 representative titanium-oxygen interstitial solutions. (3) High-temperature heat-content data were obtained for 2 titanium-oxygen interstitial solutions to about 1,600° K.

Jan 1, 1957

By Karl W. Mote, R. K. "Ivan" Urnovitz

One of the Northwest Mining Association's guide-lines is: "If you always do what you've always done, you'll always get what you've always gotten." Another way of saying this is, simply, "when the road curves, don't refuse to turn." Our industry has been roundly criticized for living in the old political world, and, I believe, justifiably so. Until about 20 years ago, members of both houses of Congress deferred to specialists among their members for mining legislation. This was true for all public lands and natural resource issues, and were referred to as the mining bloc, or the timber bloc, or the ranching bloc. We felt safe, and to a large degree, were safe in the sense that western members of the US House of Representatives and of the US Senate understood the need for multiple use of public lands, and the need for the natural resources they supply. They also knew what it takes to stay in business and how to create the economic atmosphere that encourages private industry to find and provide the natural resources. Almost daily, members of our industry bemoan the destructive effects that current regulations, let alone new proposals, are having on American industry. And, there are some intriguing aspects for us to ponder. First, the specific complaint about the government is not regulation per se, but rather that the rules or policies don't make sense. We recognize that few understand our industry, but we have assumed that the government will rely on people experienced and knowledgeable in the area being brought under government controls. There was a time that this assumption was valid, but it is no longer true since we have entered the era of the professional regulator. Much like the MBA who believes that a professional manager can manage anywhere, the new breed of regulator sincerely believes that process is the key to developing effective regulations or programs. They reason the process virtually assures that all the pertinent facts will inevitably come to light and, after receiving appropriate considerations, will result in the proper decision being reached and implemented. Unfortunately, following the process also allows politics to play a new and greater role than ever before, since information based on what can only be called weird-science can now be presented to the professional regulator and accepted as fact. Regulators do not have the background to question the basic tenets of the conclusion being presented to them. To add insult to injury, testimony from people in the industry involved, intended to set the record straight, is too easily discounted as being merely self-serving. A second aspect is that the question of why the associations aren't doing more to stop poorly conceived legislative and regulatory proposals, or to counter the ever-increasing influence of the selfappointed public interest groups is being increasingly discussed. This is occurring despite the fact that there is a higher level of involvement and closer cooperation between the various associations than ever before. This raises a most important question: where are we going wrong? In the last 20 years or so, major changes have taken place. A new philosophy, taking advantage of the public's recognition of need to protect our environment, has swept through the nation, resulting in a whole new body of law enacted to assure environmental protection. We all acknowledge the need to prevent undue degradation during the course of mineral development, and we all consider ourselves to be responsible stewards of the land, because we live and work in the outdoors and know the importance of environmental protection. The changes in the federal statutes apply now to every aspect of mineral discovery, development, and production, and assure adequate reclamation of lands when we are done. Along with the positive changes, are a constant barrage of attempts to stop public land use, or stop mining, or stop any new economic development, ostensibly to "protect the environment," but often reflecting a hidden agenda of social reform. These types of extreme, irrational, and just plain impossible proposals are everyday occurrences, but we have not geared up to challenge all the proposals which could end mining. Instead, we did what we always had done. The road turned, but we didn't. And we wondered why those who had always protected mining weren't doing their job, and why we were having such limited success in reining in the regulators. The Congress had changed, the public demands had changed, the recognition of importance of natural resources had

Jan 1, 1991

By J. F. Barkley

During the present war emergency, under the urge of the Federal Government to store coal, the following; questions are arising n the minds of coal users: (a) Will the coal lose any of its heating value in storage? (b) Will it slack and give a smaller-size coal? (c) Will its burning characteristics change in any way? (d) Will it catch fire from spontaneous combustion? (e) What precautions should be taken when storing coal? In regard to the loss of heating value of coal in storage, tests made by the Bureau of Mines show that the loss commonly has been overestimated. Various types of storage tests were made on New River, Pocahontas, Pittsburgh Gas, and Sheridan Wyoming coals. The following is quoted from Bureau of Mines Bulletin 136, Deterioration in the Heating; Value of Coal During Storage, by H. C. Porter and F. K. Ovitz:

Jan 1, 1942

By Esteban Ruisanchez Rodriguez

In this paper we will discuss the process of the grain size customization of the EBT filler sand in relationship to the technical characteristics of the furnace and its tap hole. By customizing the grain size distribution, the glassy area formed on the top of the tap hole varies and supports differently the metallurgical pressure of the molten steel providing increased free opening speeds. Taylor made sand improves therefore the free opening rate, reduces the tap to tap time and increases the lifespan of the tap

Aug 16, 2017

By Casper A. Nelson, Wendell M. Whitecotton

A WIDE variety of lead ore is treated by the Midvale Smelter, for it is a custom plant not only treating Company lead concentrate and direct-smelting ores but also custom ores and concentrates, principally from Utah, Idaho, and Nevada, with lesser amounts from Arizona, California, Colorado, Montana, Oregon, and Washington. The principal operating departments of the plant are weighing and sampling, Wedge roaster, D&L sintering, blast furnace and drossing, and baghouse. The lead bullion produced is shipped to a subsidiary, the U.S.S. Lead Refinery, Inc., at East Chicago, while the by-products, such as matte and speiss, are shipped to other smelters or re-treated at the plant.

Jan 1, 1948

By E. Brzychczy

Artificial intelligence techniques are ever more frequently implemented in the modern world. One of their numerous uses is supporting enterprise management. Intelligent techniques and intelligent information technology (IT) systems can be implemented in mining-related issues as well. The author of this article concentrates on supporting the process of planning mining operations by intelligent systems and techniques. The author also underlines the importance of knowledge accumulation in a mining enterprise (especially tacit knowledge) as well as its efficient storing and using. Additionally, the author provides a short description of characteristics of intelligent IT systems and indicates their capabilities in planning mining operations. She presents two solutions, namely: an advisory system which supports the process of planning preliminary works and exploitation works in hard coal mines, and a method of modeling and optimizing mining operations. Finally, the author indicates a few possible future development trends of intelligent systems - the intelligent systems of decision support.

Aug 1, 2013

By K. A. Grace

K.A. Grace's article advocates usage of the terms describing resources as defined by the US Bureau of Mines (USBM) and the US Geological Survey (USGS). Originally recommended in 1943, the terms were revised in 1976 and again in 1980. Mr. Grace further recommends that the term reserves should be severely restricted and that it should encompass mining and processing factors. The list of references quoted in the article does not, however, mention the study concerning reserves that was made over a period of almost four years by a joint Committee on Definitions. This committee was sponsored by three societies - the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the Society of Economic Geologists (SEG), and the American Institute of Professional Geologists (AIPG). Most of the detailed work was done by a working party appointed by the Society of Mining Engineers (SME) of AIME. After studying previous definitions in the US as well as in the United Kingdom, Canada, Australia, France, and other European countries, the following definitions were proposed and accepted in 1974 by the SME board of directors. (Ore reserve definitions in Rhodesia, South Africa, or New Zealand were not mentioned as having been reviewed.) Table 1 lists definitions from MINING ENGINEERING, July 1975. Notice in Table 1 it was mentioned, under Resources, that the definitions of reserves were recommended for the purposes of commercial evaluation. It was further stated that the terminology adopted by the USBM and the USGS, as released to the public, covering resources, was recognized as such. Mr. Grace also recommends that reserve calculations should allow for future losses in ore tonnage, ore grade, milling, and smelting. Unfortunately, it might take years to develop a prospect after it has been discovered. Mining methods have to be tested before being finalized in order to know what tonnage of ore is going to be lost, or how much dilution is likely to occur. The same problems are present in concentrating or in smelting. Operating mines usually know how mined grade compares with ore reserve grade. They can usually predict fairly closely what their final metal recoveries are probably going to be. It is, however, expecting too much to have to delay quoting reserves from say a recently drilled prospect. Any responsible mining geologist or mining engineer (or company for that matter) should state several things about an ore reserve calculation: that it is or is not a preliminary estimate only; that estimated grades have not been diluted to allow for a future, as yet unknown, mining method; that metal recoveries are or are not only tentative, based perhaps on drill hole samples only or on no metallurgical testing at all. Reserves of a partially explored prospect are always quoted when it becomes necessary to raise capital. If they are described as preliminary only (really just tonnage and grade estimates and not true "reserves") in addition to being accompanied by some of the items just mentioned, nobody is going to be misled. If, on the other hand, a report by a member of the SME or SEG is intentionally misleading, the individual must be reported and eventually disbarred from his or her society. To summarize, let us stay with the definitions of ore, ore reserves, and related terms as recommended and accepted by SME. I might add that on occasion I have used a fourth category in my ore reserve calculations, namely Geologically Possible Ore. This category is more or less the same as Inferred ore defined by the USBM and USGS. I have never given a grade to this category, which may be based only on geological mapping, geochemical sampling, or geophysical traversing.

Jan 8, 1985

By K. L. Paciorek

The aim of this program was to develop a reliable and meaning-ful basts for assessing certain safety aspects, namely fire and, in particular, toxicity hazards of articles employed in underground coal mining operations. This investigation was centered on the thermal oxidative degradation of "pure" ingredients used specifically in the formulation of conveyor beltings. To achieve this goal all products formed on thermal oxidative degradation of the materials studied were analyzed, identified I and the amount of each individual species present was determined quantitatively on a weight of product per weight of material basis. The weight/weight data thus obtained can then be factorized to reflect the relative toxicity of each individual species present, using for example the Threshold Limit Values adopted by the American Conference of Governmental and Industrial Hygienists, whereby an overall "toxicity index" can be arrived at which makes it possible to compare the different potential formulation components in a quantitative manner insofar as their "toxicity" is concerned. Furthermore, knowing the off-gassing characteristics of the commonly used additives I their contribution to the product mix obtained from actual belting can be postulated. Conversely, from the species obtained on thermal oxidative degradation of conveyor belts the type and to a degree the content of additives can be deduced. Based on the se data meaningful regulations governing the material selection for underground use can be developed. For these studies a quiescent system at 370°C was employed. Thermogravimetric and differential thermal analyses were performed to supplement and extend the sealed system investigations and to provide information regarding thermal oxidative behavior under dynamic conditions.

Jan 1, 1975

By Launa G. Mallett, Kathleen Kowalski-Trakofler, Robert H. Peters, Charles PH. D. Vaught, Peter Keating, William J. Wiehagen

On-the-job training is a common means of training or retraining workers and the practice may seem simple and straightforward. Doing it effectively however requires more thought and preparation than simply having someone follow an experienced worker around and watch what they're doing. Over the years, various techniques and practices have evolved that pass on the skills and knowledge of a trainer or coach in a manner that leads an inexperienced trainee to really absorb the information being taught. On-the-job training thus becomes less a haphazard show-and-tell and more a real transfer of information. The goal of this document is to describe how to develop or manage an on-the-job training program so that information is passed on from trainer/coach to trainee efficiently and effectively. By efficient is meant the best use of time and resources of all those involved in the training process, and by effective is meant that the trainee truly learns the skills and internalizes the knowledge needed to perform the job well. The first part of the document discusses topics to think about when developing a formal on- the-job training program. A structure based on coaching is suggested. Then a workshop designed to prepare trainers as coaches is described. Workshop materials include an instructor’s guide and trainee workbook. These materials can be used to train coaches and to assist trainees as they go through the learning process. Content related to specific jobs can be added to these materials to create targeted on-the job-training manuals. Structuring a formal on-the-job training program It is likely that some form of on-the-job training (OJT) is being conducted at your workplace. The formality of that training can range from a structured program to an informal “follow Joe around” method. If your program is completely unstructured, it may not be meeting current training needs. Worse, it may perpetuate bad habits and create “trained” employees who are not given the same information or evaluated to the same standards. Wiehagen et al. comment that, “Success in using unplanned OJT is usually dependent on the luck of the draw, that is, whether the informal trainer is competent at the task he or she is teaching, is motivated to teach, can organize the job into logical components, and knows something about good practices in teaching and evaluating” (2002, p. 27). It is only through planning a structured OJT program that consistency can be created and maintained. At the least, all trainees who have successfully completed such a program can be expected to perform at an established level—they will know what they must do to be successful.

Jan 7, 2005

By Simon D. Strauss

The recession that began in late 1980 has proved to be not only prolonged and severe, but in certain ways unique in its effect on the mineral industries among the periods of economic slowdown experienced in the Western world since the end of World War II. This time almost all minerals have been affected. In previous business turndowns, by contrast, some mineral sectors have with-stood economic adversity well. They experienced little or no adverse effect-thanks either to a strong secular expansion in the markets for their particular product or to specific factors that caused demand to be well maintained. For example, aluminum, molybdenum, and nickel are three metals that enjoyed extraordinary growth in applications during the years 1946-1973. These metals were little affected during the recessions that occurred in that era. Similarly, coal did not suffer a pronounced drop in sales in the 1974-75 turndown because, with the price of oil rising sharply, a switch away from oil and back to coal was clearly indicated for some energy-intensive applications. Oil itself was largely impervious to the ups and downs of the business cycle until very recently. And the precious metals, gold and silver, have often been regarded as benefiting from reduced economic activity because labor becomes more available, productivity rises, and operating costs diminish. In the current recession, however, no major mineral has escaped the broad trend. The secular growth factors that were previously so evident for aluminum, molybdenum, and nickel have disappeared, at least temporarily. The stable pricing behavior that previously characterized all three of these commodities has been replaced by extreme price weakness and apparent inability of the major producers to continue their roles as market leaders. Coal and oil both have suffered from a sharp drop in energy requirements. There are those who now anticipate a collapse of the market control over oil prices so clearly exercised by OPEC since 1973. If oil prices are no longer effectively controlled by the governments of the exporting countries, then coal prices are also certain to be affected. And the combination of high interest rates, tight money, and a change in public perceptions of precious metals put the skid under gold and silver quotations in 1981 and early 1982. Although inflation has been viewed as the scourge of most Western countries ever since the oil crises of 1973-74, prices-in constant dollars-of most minerals have not risen. On the contrary, with the exception of the precious metals and oil, for most minerals the prices that prevailed at the end of 1982 were close to the levels of the Great Depression of the 1930s in constant dollar terms. Table 1 compares prices for copper, lead, zinc, and aluminum at the end of 1982 with the average prices in 1934, stated in constant 1967 dollars. This emphasis on prices for mineral commodities reflects the fact that profits of mining enterprises vary directly with the level of prices. Manufacturing and retailing enterprises march to a different tune. They establish sales prices based on costs. Their profits tend to vary with volume. Commodities are for all practical purposes fungible, that is the advantages of known brands in marketing manufactured goods have little application in a commodity market. Thus the individual seller of minerals is unable to establish his sales prices. Except where a monopoly is present, he must sell at the going market. His option is to abstain from selling if he finds the price unremunerative. In past recessions, some mineral producers chose to do precisely that-either accumulating a substantial share of their output in inventory or, in prolonged downturns, abstaining from production. During the current recession, however, private-sector mining companies did not have the option of accumulating inventories to any great extent. Capital costs for new mineral projects or for expansion of existing facilities have escalated at an alarming rate since the early 1970s. Added to this has been the heavy cost of installing pollution control or safety equipment to comply with the regulations adopted in most industrialized countries (and particularly the United States) since 1968. The consequence has been that the financial position of most major mineral enterprises in mid-1980 was already strained. To finance increased inventories meant incurring additional funded debt at high interest costs, thus impairing the concern's credit rating. Management Choices Private-sector managements have had to face up to the alternative of either continuing to produce at an unchanged rate and marketing output at unremunerative prices or reducing output. The latter has meant either operating at a curtailed rate, with con-

Jan 3, 1983