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By S. Sener

In this investigation, the changes in the grindability of both ulexite and colemanite related with the different structural modifications created by the heat treatment were examined with respect to work index (Wi). The effects of the heat treatment temperature and time on grindability index were also investigated. It was observed that, heat treatment significantly affected on the grindability of ulexite. The work index of original ulexite was found 7.11 kWh/shton and decreased to 3.5 kWh/shton level within 200-480°C for 60 minutes. On the other hand, the work index of original colemanite was found as 6.48 kWh/shton and no appreciable change was observed when heated up to 320°C. Thermally assisted comminution can be used to improve the grindability characteristics of ulexite. Besides, the different behaviour of ulexite and colemanite under heat treatment can be used for their separation. The artificial mixture of ulexite and colemanite could be separated with over 90% recovery by utilizing their different grindability characteristics by thermal treatment, semi-autogeneous grinding and screening.

Jan 1, 1999

By Priscilla P. Nelson, Francis L. C. Fong

Introduction Fracture mechanics is the study of the behavior of cracks and their modes of propagation. During cracking, energy is consumed in creating new surface area. The more energy a material absorbs, the higher is its fracture resistance. This fracture energy is provided either by work done externally, by the release of elastic strain energy within the cracked body, or by a combination of these two effects. Fracture resistance is measured in terms of either the stress intensity factor, K, or the energy release rate (also referred to as crack driving force), G. For linearly elastic materials, these two quantities are related by the following equation: [ ] where [u] is Poisson's ratio and E is the modulus of elasticity. Both K and G are direct functions of the applied force and the crack length. The process of rock cutting with full-face tunnel boring machines (TBMs) involves the indentation of a rock surface by rolling disc tools. Excavation occurs as fractures, extending from the locus of chip indentation, propagate between concentric disc grooves and liberate rock chips from the intact rock face. Since disc cutting is achieved by a fracture process, it is logical to anticipate that differences in cuttability of a variety of rocks should be related to the variation of fracture material properties among the rocks. Such a relation has been demonstrated between the performance of full-face TBMs and the critical crack driving force for excavation in relatively high strength, brittle, low porosity, isotropic rock (Nelson et al., 1985). The objective of this paper is to report on the results of a continued investigation of the relationship between fracture material properties and the effectiveness of disc cutting. Additional reliable data on full-face TBM performance is difficult to obtain, so that the results of disc linear cutter tests performed by the Transport and Road Research Laboratory (TRRL) (U.K.) are utilized in this study. Fracture Material Property Evaluation If a crack tip is subjected to a perfectly plain strain condition, many materials will behave in a brittle manner, and the material resistance to fracture is constant during crack growth. This resistance is referred to as the plain strain fracture toughness, believed to be a material property. The standard testing procedure for this parameter is given in the American Society for Testing and Materials (ASTM) test designation E399. To ensure plain strain conditions, acceptable specimen geometries are specified. Unless these geometric specifications are adhered to, the measured fracture resistance is regarded as the apparent fracture toughness, and a subscript Q is used, as [ ]. The methodology adopted by ASTM E399 is within the framework of Linear Elastic Fracture Mechanics (LEFM). This approach assumes that material resistance against cracking is developed instantaneously, without initial stable or subcritical crack extension. Prior to crack advancement in rock, however, much of the crack driving energy is absorbed in a localized volume in front of the crack tip, referred to as the plasticity or microcracking zone. This capability for energy absorption substantially increases material resistance, and a crack may be arrested unless an increased crack driving force is applied. The LEFM or plain strain assumptions would underestimate the actual fracture resistance of such a material. Such a conservative approximation may be desirable in the design of structures against fatigue or brittle failure. In mining or tunneling, however, an underestimation of crack resistance can lead to the selection of underrated excavation equipment and a decrease in production efficiency. The development of fracture resistance in rock is best described by the material resistance curve, or R-curve, which is a plot of fracture resistance as a function of crack extension. Typically, peak resistance is only reached after a finite amount of subcritical crack growth. The

Jan 1, 1986

By S. Mathur

Polyacrylic acid (P AA) was evaluated as a selective flocculant for dolomite-apatite system. P AA of 4 million MW was found to flocculate both dolomite and apatite. However, their flocculation behavior was significantly different with 450,000 MW PAA which was the lowest molecular weight fraction capable of flocculation. In single mineral tests, at a dosage of 2kg/t 90% of dolomite and 35% of apatite flocculated. Selectivity was achieved in mixed mineral tests where apatite of 90% grade at 70% recovery level was obtained in the concentrate from a feed consisting of 80:20 mixture of apatite and dolomite. The dolomite rejection was about 75% which corresponds to 1% MgO in the concentrate.

Jan 1, 1995

By Karl C. Dean

To assist in the reduction of environmental degradation resulting from milling operations, the Bureau of Mines has developed, and successfully demonstrated, chemical, vegetative, and combined chemical-vegetative procedures for stabilizing milling wastes under varying environmental conditions. Costs of achieving reclamation using these stabilization procedures are compared with those of other physical and vegetative approaches. The Bureau's chemical-vegetative procedure for establishing vegetation directly on fine-sized wastes compares favorably with other stabilization processes that have been used.

Jan 1, 1972

By Patzen Wu, Chao-Ming Tsai, Shaw-Chii Wu, Yuan Lin

INTRODUCTION The development of nuclear industry in Taiwan requires an increasing supply of uranium. Uranium recovery from phosphate ores, becomes an important item of the R & D programs. Many countries have already started such a program. USA has set up an industrial-scale production plant; South Africa, Israel, Morocco and other countries have also engaged in the development of extraction technology of uranium from phosphate ores and started setting up the production plant. In Taiwan, a feasibility study of establishing the production plant was started in 1977. A pilot plant was completed, tested, and operated in 1979. The main source material. - phosphate ores is obtained from China Phosphate Company. The annual yield of the pilot plant has been planned to be one ton of ammonium diuranate (ADU). The Health Physics Division of Institute of Nuclear Energy Research (INER), Atomic Energy Council of Republic of China (ROC AEC), is responsible for the radiation safety control of the plant. The purpose of the radiation safety control is to collect radiation safety information of the plant of this type, to evaluate possible radiation hazards to the personnel, and to analyze the radiation safety of the immediate environment adjacent to the plant. Furthermore, the information and experience obtained are used as the basis for applying radiation safety control to the production plant. The main emphases of the radiation safety control are therefore the arrangement of radiation safety control areas and the collection and evaluation of the health physics data. This report includes the past one and half years' experiences of the radiation safety control of the pilot plant, the planning of the production plant with an annual yield of 10 ton ADU, and considerations given in improving the radiation safety control of the production plant. PILOT PLANT AND ITS OPERATION PROCESS The pilot plant occupies an area of 350 m2 and is a two-story rectangular building. Exits are provided by a front and a rear door. An additional small door at the central right side of the building is connected to the maintenance area located outside the main building. The interior of the building is divided into interconnected offices, laboratories and process area (Figs. 1 and 2). A stairway to the process area of the second floor is located in the central part of the first floor. The second floor offices are accessible by the additional front and rear stairways. The main process area of the first floor is furnished with plastic floor, and the second floor with poriferous iron-grid floor. The building is not furnished with centralized air-conditioning system. Individual air conditioners are, however, available to some laboratories. Because the back door of the building is frequently open, the product storage room is provided with a blower to maintain good ventilation. Natural uranium contents of phosphoric acid solution vary in the range from 0.07 to 0.11 kg/m3. The process consists mainly of the uranium concentration cycle and the purification cycle. A flow diagram of the process is shown in Fig. 3. CONSIDERATIONS GIVEN FOR RADIATION SAFETY CONTROL AND THE ESTABLISHMENT OF RADIATION CONTROLLED AREAS The radiation safety control of the pilot plant is carried out on the basis of the considerations listed below:1,2 1) Since the wet process is adopted, and the flow of the radioactive material is confined to closed pipes and containers, air contamination is therefore not too much of concern. 2) The concentrations of radioactive material of the whole process are mostly less than 10 ppm. An exception is the final ADU product after precipitation and centrifugal separation, which contains up to 50% natural uranium. It is therefore necessary to apply radiation safety control to the process area where

Jan 1, 1981

By John P. Weir

The coal industry is ever changing. This paper discusses some of the problems which must be faced and the projected economic effects. Challenges include a relatively mature technology, a resource base which has deteriorated significantly in some areas, rapidly escalating freight rates, and a constantly changing regulatory environment, wherein reduced sulfur emissions will probably be required.

Jan 1, 1984

By K. S. E. Forssberg, J. A. Jirestig

Laboratory investigations on the possibility of using magnetic separation for the recovery of sulfide minerals have been reported. A survey of several sulfide ores and flotation concentrates indicated that, in most cases, magnetic separation is not a suitable primary beneficiation method. However, encouraging results have been obtained in concentrate purification. At the Boliden complex sulfide ore concentrator in Garpenberg, Sweden, an Allis-SALA Mark III carousel High Gradient Magnetic Separator (HGMS) is used with a small flotation circuit to recover sphalerite lost to the galena concentrate during lead flotation. After four years of refining the HGMS process, there has been an increase in zinc recovery and an enhancement in the quality of the lead concentrate.

Jan 1, 1994

By Donald L. Everhart

Economic geologists faced with the task of evaluating phosphate rock deposits find it necessary to deal with a unique and a lengthy list of geologic, chemical, and economic factors before they can determine whether the deposit does, or does not, constitute "ore". The underlying fact is that phosphate rock concentrate sells at a price per ton that is among the lowest for all mineral commodities. A recent going price for a standard grade (i.e. 72% BPL) phosphate rock concentrate F.O.B. Tampa is $6.00 per long ton. This compares with sand and gravel's price of about $5.00 and $8.00, respectively, per ton. In the case of many, if not the great majority of mineral deposits, the evaluating geologist needs to concern himself principally with the fundamental and classic considerations of tonnage and grade. Barring some very unusual metallurgical problem any geologist that finds say 50 million tons of 1% copper rock, or substantial tonnages of 0.7% U308 sandstone, pretty well knows he has an ore body! Certainly the evaluation of phosphate rock starts with tonnage and grade. Any rock with less than about 10% P205 in the ground is generally ruled out as ore, on the basis of grade alone. Since nearly all phosphate rock operations must be of the large-tonnage, low-unit-value type, the tonnage of new reserves, to be considered as "ore", ought to be in the 100-million + class. But having outlined' a deposit of phosphate rock having acceptable

Jan 1, 1971

By S. Tuylu, D. Adiguzel, A. Bascetin, H. Eker

"Tailings can be more stable in-site where they are stored and and so the risk of conventional tailings dam accidents can be reduced by alternative methods. In recent years, surface paste disposal (SPD) method is one of the alternative tailings storage methods. According to the results obtained from the previous lab scale experiments, optimum storage design was determined and then, this design was carried out in-site application under atmospheric conditions by a pilot scale tests. In the field study, two separate dams with no environmental hazards were established by the hazardous waste storage directive, whose surface area is measured as 400cm × 200cm. Also physical changes in the paste tailings were measured by the sensors such as volumetric water content, mutric suction and oxygen consumption. In addition, seepage water was collected in the drainage pool and examined for acid mine drainage and metal mobilization risks. As a result of the preliminary data obtained from measurements of pilot scale tests, when the pH value of seepage in the cemented dam (only 1th and 10th layers with cemented) is about 11, the pH value of seepage in the uncemented (reference) dam is measured at 8-9. INTRODUCTION Environmental damages occurred during the deposition of mine process tailings at surface using conventional methods (tailings dam etc.) can be reduced and/or eliminated with the use of new technologies and methods to an important extent. Nowadays, it has been investigated to safely deposit metal mine wastes generally discharged into surface tailings dams, seas, rivers, creeks etc. using Paste Tailing Technology which gains the growing importance in recent years. Meanwhile, Paste Tailings Technology has two applications in industry as an underground paste backfill and surface paste deposition. Particularly scientific studies about deposition of process tailings as paste sample in underground and surface have been increased. These studies showed that surface paste deposition can minimize the free water amount which is the biggest problem in conventional tailings dams. Additionally, it also provides less particle segregation, in other words, the formation of more homogenous material, the development of geotechnical properties which causes to obtain more stable material, increases the strength and stability of the paste with addition of binder where necessary surface paste material, and reduces the risk of Acid Mine Drainage (AMD) (Bascetin et al., 2017a). Theriault et al. (2003), Martin et al. (2006) and Simms et al. (2007) reported that Bulyanhulu mine in Tanzania is the first gold mine to employ surface paste disposal (SPD) worldwide. Here, tailings are deposited alternately via several towers. The tailings flow away from each tower to forming a conical deposit. Each layer had a lower thickness than 30 cm. The fresh tailings were poured on top of drying and hardening layer after a waiting period of 5-30 days. No cement was added into the tailings to prepare paste material. Uncemented paste was deposited by a solid content of 73% which corresponded to a 250 mm slump cone height (Yilmaz et al., 2014). In a study conducted by Yilmaz (2010) illustrates the preliminary results of a field cell testing undertaken to investigate the effect of in situ climate conditions and material properties on the performance and quality of fine-grained, sulphide-rich paste tailings at the LaRonde mine in Quebec, Canada. A total of two field cells are constructed in the surface disposal site of the mine and categorized as cemented cell CC and uncemented cell UC (Bascetin et al., 2017b)."

Jan 1, 2018

By H. Ankara

Determining the identicalness levels of the same model trucks working in open pit mine transportation system by means of statistical analysis methods is very significant in terms of availability analysis. In this study, the identicalness levels of two trucks picked randomly from the 170-short-tonne truck fleet working in open pit coal mine over one-year period were examined through a non-parametric test, Mann-Whitney U test for two samples. Time to failures (TTFs) and Time to Repairs (TTRs) of the trucks were analyzed with this test technique and then whether they were identical or not was determined. In order to determine whether the trucks identified to be identical at the end of this test displayed the same mining performances within the same open pit transportation system, the availability analysis of the identical trucks was carried out. As a result of the availability analysis, it was observed that the trucks had availability values that were very close to each other. It was also determined that Mann-Whitney U test could be employed together with availability analysis. Finally, it was observed that Mann-Whitney U test for two samples could yield rapid results in the performance analysis of complex systems like open pit mines.

Jan 1, 2010

By L. Larrimore

Electric utilities depend heavily on coal as a major fuel source for power generation, annually producing more than 85 million ton'> of ash, boiler slag and FGD (flue gas desulfurization -"scrubber") materials as by-products. Utilities and others who burn coal have traditionally disposed of these by-products in ponds or landfills. However, in the last 10-15 years there has been a greatly increased emphasis on beneficial utilization of these materials by the producers themselves as well as by customers who purchase the by-products. Regulatory, cost and technical performance issues currently impact the use of coal ash and other coal combustion by-products (CCB).

Jan 1, 1997

By P. A. S. Manning

Eastern Jamaica consists predominantly of non-carbonate rocks reaching elevations of over 2200 m. The area is drained by a well established river network which supplies close to 30% of the sand and gravel used by the building and construction sector. Present high extraction rates and slow rates of replenishment will result in early exhaustion of this source of aggregate. A number of volcanic and carbonate rocks are being examined as a possible source of high quality aggregate which meet the requirements for all types of construction. Preliminary evaluations show a dacitic deposit to be the most suitable source for aggregate use.

Jan 1, 1998

By A. F. Barsotti

Apart from jewelry, holistic apparel, and special collections of color and sometimes rare crystal specimens, the average layperson has little or no appreciation of the omnipresence of minerals or mineral derived products in the home. From concrete in the driveway to aspirins in the medicine cabinet, minerals, especially industrial minerals, play a major role in day to day living. For a better appreciation of this let's look into the a day of the life of a fellow named John, and see how much we depend on industrial minerals. The sounds of soft violins nudged John from his sleep. The melodic sounds of Beethoven's Pastoral coming from his radio alarm clock brought him out of his dreams. He reached for the reading light switch, then checked his watch--6:30 a.m., and another day of work. As he got up, the darkness outside reminding him of winter coincided with the soft voice of the all night disk jockey forecasting the fall of four inches of snow. Warm beads of water beating on his face removed all remnants of sleep and, like a stimulant, the morning shower brought thoughts of yesterday and plans for a new day. These carried over as he looked himself in the mirror while shaving and brushing his teeth.

Jan 1, 1993

By A. Singh, C. Da Corte

"South Africa possess the biggest fluorspar reserves in the world followed closely by China. In light of the current commodity downturn this paper explores the use of Dense Media Separation (DMS) as a coarse pre-concentration method for two fluorspar deposits located in South Africa in which the dominant gangue is carbonate present in the form of dolomite and calcite. Heavy Liquid Separation indicated that conventional pre-concentration of the drill core samples from both deposits would result in unacceptably high fluorite CaF2 losses. At a maximum CaF2 loss to floats of 5% the benefit of DMS would be economically marginal and difficult to justify as a conventional pre-concentrator. In light of cashflow constraints, a twin flowsheet was proposed for the sole purposes of upfront cash generation in which the majority (67-77%) of the CaF2 would report to a high grade flotation plant in 38-41% of the mass whilst the rejects would be stockpiled for flotation at a later stage. Considering the proposed twin flowsheet approach the high grade product split was achieved using DMS and this paper documents the challenges encountered and results achieved. INTRODUCTION Fluorspar is the commercial term for the mineral fluorite (calcium fluoride, CaF2). Worldwide production of fluorspar is dominated by four countries namely China, Mexico, Mongolia and South Africa. Although South Africa is the fourth largest producer, it has the largest fluorspar reserves closely followed by China (U.S. Geological Survey, 2017a). Fluorspar is broadly categorized into two grades namely acid grade also referred to as acidspar (>97% CaF2); and sub-acid grade (ceramic and metallurgical grade) commonly referred to as metspar (=97% CaF2). Acid grade fluorspar is used for the production of hydrofluoric acid (HF) which in turn is used for the manufacture of fluorocarbons and semi-conductors in the electronics industry; metal processing; the production of insecticides, herbicides and cleaning detergents, and the manufacture of uranium tetrafluoride used to concentrate the uranium isotope 235 for use as a nuclear fuel (British Geological Survey 2010; Miller 2001). Ceramic grade fluorspar (85-95% CaF2) is used in the ceramic industry as a flux and opacifier in the production of glass and enamels. Ceramic grade fluorspar is also used to make coatings for welding rods and as a flux in the steel industry. Metallurgical grade fluorspar (60-85% CaF2) is primarily used in the steel industry as flux to reduce the melting temperature and remove impurities in steel making. Similarly metallurgical grade fluorspar is also used as flux in cement production to reduce energy consumption (British Geological Survey 2010; Miller 2001)."

Jan 1, 2018

By N. S. Tanious

This paper summarizes the results of an investigation into possibly the largest coal pillar failure in the USA. The newly opened drift mine is located in Southeastern Kentucky and worked an 11 feet thick coal seam, all other mines in the District worked seams 4-5 feet thick. The initial mine development consisted of 14 main entries (Fig. 1) which were driven in two sets of 7, under increasing depth of overburden. As the left seven entries came under deeper overburden the pillar ribs began sloughing which caused many of the concrete-block ventilation stoppings to crack. The mine management stopped the advance in the left seven and continued with the right seven entries. During the spring of the following year development resumed in the left seven, rib sloughage occurred again and this time severely cracked many stoppings and many were totally disintegrated from the excessive deformation. Within few weeks the sloughage was so heavy that many of these entries behind the active face were filled with piles of sloughed coal slabs. When the face reached a depth approximately 1150 feet, the sloughage became a slow, massive squeeze. The entry convergence (closure) reduced their height from 11 to 7-8 feet and the squeeze spread back to shallower depth covering an area roughly 300 pillars.

Jan 1, 1989

By Henry E. Reed

This presentation is about a small company, Industrial Mineral Products, that was formed in 1972 with one product and one customer and by a series of value-added changes avoided disaster and increased sales many times over. The principal of the company stopped by my office in Seattle looking for industrial mineral opportunities in the Northwest. We got together and went through all the minerals in Ladoo's "Industrial Minerals" from Abrasives to Zircon to see if we could find something available on the vast holdings of the Burlington Northern. At that time one of our lessees was operating a silica sand mine near Ravensdale, Washington and indicated that he might be interested in selling out. This sounded interesting to my client and within two weeks the transaction was completed.

Jan 1, 1990

By M. M. Champion

INTRODUCTION Since the first introduction of explosives into mining operations, safety considerations have prohibited the use of machinery in association with the explosives. Only within the last 25 years has this situation changed appre¬ciably; the closest thing to "machinery" used by a powderman in the "old days" was his wooden tamping stick. With the blackpowder and dynamite used during the first 150 or so years of mining blasts, substituting a drill steel or a metal "spoon" invited serious disaster. With the advent of ammonium nitrate-fuel oil (ANFO) explosives (1950s) and water-gel explosives (1970s) for underground blasting, machinery started to play a large part in blasting procedures. The lower sensitivity of ANFO and water gels allows these prod¬ucts to be loaded in a variety of safe ways. Not only has this meant cost savings in labor and blasting materials, but it has also resulted in whole new mining concepts where the limitations of dynamite previously made those concepts uneconomical, impossible, or excessively risky. Increasingly (totally for some mines), the traditional tamping stick has given way to a variety of pneumatic machines for loading explosives and blasting agents. The resulting blasting operations have become safer, more efficient, less uncomfortable for personnel, and a major step forward in mining technology. ANFO LOADING EQUIPMENT Three basic types of loaders are used for ANFO explosives, these being the pressure-vessel loaders, Venturi loaders, and combination loaders. Pressure-Vessel ANFO Loaders ANFO consists of prilled ammonium nitrate (porous pellets I to 2 mm in diam) and fuel oil in the appro¬priate 94 to 6% blend. The material is fairly dry, pourable, and easily conveyed by an air stream. One device or system for handling (hole loading) ANFO is the pressure-vessel loader. ANFO is dumped into the vessel or "pot," and the vessel then is pres¬surized. The ANFO is conveyed out of the bottom of the vessel into a semiconductive hose that has been inserted into the blasthole. Fig. 1 illustrates a typical pressure-vessel loader in use. Applications: The use of pressure-vessel loaders is widespread in room-and-pillar mines, including salt, potash, trona, lead, and other rubber-tired mines where the heavy pressure vessels can be mounted on a vehicle for transport from face to face. The vessel often is large enough to hold eight or more 23-kg (50-1b) bags of ANFO, so several faces can be loaded before refilling. Pressure-vessel loaders also are suitable for effec¬tively loading long holes such as those that are 6 m (20

Jan 1, 1982

By Rustu S. Kalyoncu

Rainbow colors of roofing granules, adorning the roofs of buildings from single family units to largest office buildings, have their origin in the roofing shingles as burlap soaked with tar appearing as early as the 1700s. Dusting of talc and mica on the coated surfaces, to keep roofing from sticking to itself in storage, represents an early improvement to the original construction product. Sometimes, colored, natural mineral dusts were added as color pigments within the dusting material, for initial color. Prolonged exposure to sun caused the asphalt to become brittle, and it eventually cracked and leaked. Search for solutions to cracking and subsequent leaking problems eventually led to the use of crushed mineral granules on asphalt coated shingles. This provided the impetus for further growth in the asphalt roofing industry. Application of a layer of crushed mineral on the asphalt coating minimized the coating deterioration from exposure to ultraviolet light, thus significantly improving the shingle life. In the 1900s, screened waste from slate quarries was the most commonly used granule in asphalt roofing products. Records indicate the use of coarse slate screenings for asphalt roofing as early as 1906. As the asphalt roofing industry further developed, other naturally colored minerals, such as silica sand, quartz, mica, feldspar, talc, slag, granite, rhyolite, and oyster shells were used on roofing surfaces. Later on, a number of manufactured granular materials, such as crushed brick and tile, fire clay, and white porcelain were used. The first artificially colored roofing granule was produced in 1914 by running molten slag into a solution of alkaline metal silicate, which was absorbed by the porous slag. Various colors were obtained by adding pigments to the silicate coating and by subsequently heat treating the granules. In 1922, another technique was developed in which green slate granules were saturated with copper sulfate solution and heated to 760°C to form copper oxide. Since then, many other granule coloring processes have been patented, one of the most significant being the sodium silicate coatings introduced around 1975. Granules as used in construction (specifically roofing materials) are defined as natural or synthetic-mineral grains smaller than gravel and larger than sand in particle size. They are used primarily for protective and decorative purposes on the weather- exposed surface of asphalt composition roofing. Development of artificial coloring techniques has made it possible for the roofing industry to provide asphalt roofing shingles in a wide variety of colors complementing the color and style of buildings. Roofing granules, as we see today, are the products of long technological evolution.

Jan 1, 1994

The Putnam Coal Mine, at design capacity, will be the third largest underground bituminous coal mine in the world and will feature the world's longest single flight belt conveyor. Construction is now in process; initial mining will commence in early 1969 and design capacity will be reached in 1971. I'm Jerry Workman, Assistant Mining Manager for the Coal Group of the Mining and Metals Division of Union Carbide Corporation, and I am acting as Project Manager for installation and start-up of the Putnam Mine. The Putnam Coal Mine reserves are located in south-central West Virginia and contain approximately 27,000 acres of prime Pittsburgh No. 8 coal; reserves are sufficient to support a 3.5 MM tons per year operation for over 30 years. The mine portal area is located some six miles inland from the Kanawha River. The river loading facility is located approximately 156 miles by way of river from the market.

Jan 1, 1968

By Roger S. Dewey

1.1. INTRODUCTION Despite indications of a general economic recovery in the U.S. during the mid-19801s, mine operators have not generally shared in the benefits of these reported better times. Budgets have not rebounded, borrowing is tougher, parent companies' pockets are not as deep as in previous years, and margins are not any better -- if there is any left over at all. Managing capital equipment budgets is always a challenge, and the last five years of stretched equipment lives make these decisions more tenuous. Delays and avoidance of replacements due to tough times inevitably makes those decisions increasingly difficult and usually more expensive The purposes of this paper are to present. a brief refresher outline of the fundamentals of equipment replacement analysis, to suggest a number of papers where analysis methods are explained in greater detail. and to recommend the use of a widespread microcomputer software capability (1-2-3) as the easiest path to a much-needed solution for a very difficult, and usually under-supported management decision problem 2. REPLACEMENT DECISION POLICY Investments in equipment replacements must compete for capital with all other investment alternatives. Capital for replacements of ten represents a greater commitment than do the new projects which a company might handle in a given year. But. sadly, formal policies for standardized analysis of replacements rarely exist, even in major companies. Yet this policy can be very significant in determining the competitiveness of a firm. Whereas many replacement decisions are based on cost minimization, economists and financial analysts agree that wealth maximization or return on investment is the superior criterion. Though the difference may seem slight, agreement on a firm's financial objective is vital. Replacement policy should be straight- forward. have a logical basis, and a proper level of sophistication. There are several reasons to develop a policy for replacement decision-making: [I] 1 - equipment's optimal economic life is nearly always shorter than its physical life; 2 - mine life often exceeds equipment life, so management must face these decisions routinly 3 - replacement capital costs, on an undiscounted basis, can run 25 to 75% of original capital 4 - technological changes may result in a newer machine or system which can operate more efficiently, more safely. or less expensively 5 - estimates should be made consistently in the fundamental areas of life expectancy, availability, utilization. price escalation, taxes 6 - long-term and short-term budgeting without decent data and analytical capability is nearly impossible, or at least ineffective Policy development assumptions which must be considered include: the planning horizon, cost patterns, interest rates, availability of capital, replacement vs. expansion, technology advances.

Jan 1, 1987