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By Robert Baker

IT has been demonstrated in the laboratory by A. J. Phillips1 that a transformation or conversion from beta directly to alpha may take place in a brass of 61 to 62.5 per cent copper content. The completion of the transformation is dependent on a rapid rate of cooling from the all-beta field through the alpha + beta range to the alpha field. Phillips states that in a slowly cooled alloy containing 62 per cent copper and 38 per cent zinc the copper content of the beta is progressively decreased from 62 to 56 per cent by precipitation of alpha. Rapid cooling tends to prevent the separation of alpha with a copper content of more than 62 per cent by reducing to a minimum the time required for passing through the alpha + beta range. Upon crossing beyond the (alpha + beta.)/(alpha) boundary to the all-alpha region below, the material is transformed from beta to alpha. It is essential that there be no change in composition. Phillips obtained his results by quenching a 62:38 copper-zinc alloy from 850° C. in iced brine at -8° C. No reference to the occurrence of this transformation in a manufacturing process has been found in the literature. An investigation of the microstructures of a number of hot forgings made from leaded brass rods yielded one forging in which this striking conversion from beta to alpha had occurred. The purpose of this paper is to describe the transformation and certain conditions under which it may occur during the hot pressing of brass. The conversion was noted in a shape forged from a leaded brass rod, the composition of which was: Cu, 60.26 per cent; Zn, 37.86; Pb, 1.88. In this study the lead content was disregarded and the alloy was considered to be equivalent to an alloy of 61.40 per cent copper and 38.60 per cent zinc (98.12 parts = 100 parts). The possibility that the lead might obstruct or accelerate the precipitation of alpha was not studied. The lead appears as black globules in the photomicrographs and has a negligible solubility in the alloy.

Jan 1, 1931

By W Russell, P Wighton, J Franke

Recent advances in ruggedised industrial control system technology and architecture in combination with latest technologies in the fast-evolving 3D LiDAR sensor sector becoming available have enabled the implementation of sophisticated automation algorithms for mining equipment such as bucket wheel reclaimers, as published by the authors in the peer reviewed AusIMM 2019 Iron Ore conference proceedings. This paper provides an overview of a second use case for such automation technology in bulk material ports integral to iron ore operations. The real-time 3D machine-vision based port automation system described in this paper was originally developed for the BHP-Mitsubishi Alliance’s (BMA) Hay Point port. The system has seen deployment at other major mining and general ports in Australia, such as at Dalrymple Bay Terminal (DBT) (shown in Figure 1) managed by Dalrymple Bay Infrastructure Management (DBIM), Hay Point, Queensland. It has the following use cases:

Nov 8, 2021

By Harold M. Smith

The data in this report were prepared to show how Bureau of Mines routine crude oil analyses could be used to evaluate crude oils in terms of common commercial products . The use of Bureau of Mines routine analyses to determine hydrocarbon - type relationships for the gasoline and gas - oil fractions is demonstrated . For this purpose the correlation index , the aromatic profile and the naphthene profile are used to establish reasonably acceptable values for hydrocarbontype relationships . The derivation and meaning of these indications are discussed . These analytical interpretations are applied to a group of high - sulfur crude oils from the Near East , the Permian basin of West Texas , Venezuela , Colombia , California , and other locations , and the resultant data for gasoline , gas oils , lubricating oils , and asphalt are compared by appropriate tables and graphs . Because the Near East crude oils contain higher quantities of paraffins in the gasoline and gas oil ranges , they will yield good , lowsolvency solvents and good kerosine , jet fuel , and diesel fuels , but straightrun gasoline of inferior quality compared to similar products from either West Texas or Venezuelan high - sulfur oils . The Near East oils also should be good sources of lubricating stock . However , when used as stock for catalytic cracking or reforming , the Near East oils suffer by comparison because they are deficient in naphthenes .

Jan 1, 1964

By J Joy, A Bye, G V. Kizil

This paper presents an application of the newly developed risk-cost-benefit (RCB) framework to support risk management decisions for the selection of wall monitoring technologies at an open cut mine site. The RCB framework quantitatively assessed the risk of unstable slope-induced wall failure and its impact on both loss of life and coal recovery. The RCB framework was utilised in the selection of an optimum group of risk-controls to effectively manage the risk of wall failure to ensure safety and optimal production occurred. The RCB framework incorporates mathematical modules that integrated RCB calculations and risk-control effectiveness assessments to determine the risk reduction and financial impact of the examined safety initiatives.This paper provides an overview of the five-staged RCB framework, incorporating the RCB decision support tools, RCBGEN (Risk-Cost-Benefit Generator) and RCEMETHOD (Risk-Control Effectiveness Method), and demonstrates its application to slope stability risk management at the case study site. The RCB charts are designed to display a balance between risk, cost and benefit for easy interpretation by decision makers to support the objective selection of an optimum suite of risk-controls. The RCB analysis revealed that a combination of ævisual inspections, automatic extensometers and radarÆ for fast- and slow-wall failures with structure were sufficient to reduce the probability of loss of life (PLoL) to the æModerateÆ zone as defined by the Australian Geomechanics Society (AGS, 2007) for the case study site. The new framework presented in this paper provides a method to effectively determine the suitability of risk-controls and supports industry efforts to reduce risk to as low as reasonably practicable (ALARP).CITATION:Kizil, G V, Bye, A and Joy, J, 2012. Risk-cost-benefit analysis of early warning technologies impact for wall failure risk management in surface mines, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 55-64 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012

By P J. Willems, B J. Junor

Blackwater Mine is in the central-southern Bowen Basin, immediately south of the township of Blackwater on the Capricorn Highway. The current open cut operation extracts coal from three main seams, designated Top, Middle and Lower, in the Late Permian Rangal Coal Measures cropping out on the eastern flank of the Comet Ridge. Complex geological structures, dominated by E-W normal faults and N-S reverse faults, have significant detrimental effects on coal mining operations. Historical exploration before 2010 involved several types of drilling only to understand structure, coal quality and washability. Hence, although drilling data was combined with limited pit mapping and observation, unknown structures were still often encountered during excavations and led to mining surprises. In 2010 BHP completed 200-line km of closely spaced 2D seismic survey to capture gross and detailed structures followed by fit for purpose structural drilling to confirm major structures in the northern part of the mine. In 2018 a high density 9.2 km2 3D seismic survey was completed in the southern part of the mine. Subsequently, a 17.2 km2 survey was completed in 2020 to cover the northern active mining area. It allowed geoscientists to successfully map previously unknown major faults and seam splits, which could potentially impact the mineability of the area. It is important to note, that faults interpreted using modern high-density 3D data can be interpreted with dramatically higher confidence in the fault dip and azimuth orientation in comparison to the legacy 2D data. Along with targeted drilling, pit mapping and structural interpretation, the outcome adds value to mine planning and operations. This paper outlines recent successful seismic 3D data acquisition and interpretation. In detail, the paper presents case studies on how the data can be incorporated into a structural model to improve geological knowledge, enable geotechnical assessment, and support safe and efficient coal mining in a large and structurally complex mine.

Mar 22, 2022

By W. C. Ellis, M. E. Fine

INTRODUCTION IN the iron-cobalt system there are several property-composition relationships of theoretical importance. The alloys are ferromagnetic exhibiting a maximum saturation at approximately 33 at. pct cobalt;1 the interatomic distances at room temperature show large positive deviations from Vegard's rule;2 and in the region of 50 at. pct cobalt there is an order-disorder transition which has a large effect on other properties. The thermal expansion data for the system have been reported3,4.5,6 only from room temperature to 100°C, and for this temperature range a minimum in coefficient in the region of 50 at. pct cobalt is well established. 3,4,6 This paper reports the expansion properties in the iron-cobalt system for temperatures from 30 to 850°C, shows the correlation with other physical properties, and proposes an explanation for the interrelation. EXPERIMENTAL PROCEDURE The thermal expansivities of iron-cobalt alloys in 10 pct steps in composition were determined from 30 to about 850°C. The major series of alloys was prepared by induction melting from Armco iron and cobalt rondelles with the addition of about 0.6 wt pct manganese. This series was supplemented by three compositions: high purity electrolytic iron, high purity electrolytic cobalt, and an alloy of 52.1 wt pct cobalt prepared from the high purity electrolytic iron and electrolytic cobalt by vacuum-melting. The compositions of both series of alloys are given in Table I. The specimens for measurement were prepared from the cast ingots by first hot-swaging followed in most instances by cold-swaging to 0.180-in. diam rod. Some alloys in the region of 50 pct cobalt, because of inherent cold-brittleness, were swaged hot to the final diameter. The expansion specimens were approximately 2 ½ in. long with flat-ground and polished ends. Before measurement they were annealed in hydrogen for r hr at 900°C. In the apparatus used for the thermal expansivity measurements (Fig I), a modification of that designed by Hidnert and Sweeney,7 the differential expansion between the specimen and vitreous silica was measured by a dial micrometer reading to 0.001 mm. An invar fixture supported the dial gauge, and this fixture, in turn, was connected to a split invar collar which supported the outer silica tube. A pyrex "T" was placed over the outer silica tube and was sealed to the invar collar by Apiezon Q sealing compound. A movable hollow vitreous silica rod which rested on top of the test specimen slid through a flexible rubber diaphragm cemented to the top of the pyrex "T." The specimen rested on a vitreous silica pedestal fused into the outer tube and was kept centered by a silica sleeve. A non-oxidizing atmosphere was obtained by admitting hydrogen into the

Jan 1, 1948

By E. J. Marcotte

"INCO LIMITED'S Shebandowan Mine and Mill is located in a scenic tourist and cottage area near the western tip of Lower Shebandowan Lake, approximately 90 Km west of Thunder Bay, Ontario. This nicely designed complex is a positive indication that mining operations can co-exist in harmony within the natural environment.The Shebandowan complex processed nickel-copper ore from 1973 to 1985, inclusive, after which operations were shut down.In late 1988, INCO LIMITED decided to place the Shebandowan complex back into operation, under contract, to mine and mill the remainder of the ore body, according to their specifications. MaclSAAC'S EXPLORATIONS was the successful bidder for the project. Following preliminary rehabilitation, operations were re-activated in late March, 1989. The ore mined to date is of a moderately lower nickel grade than the majority of previous years. However, a higher tonnage rate, combined with improved nickel recoveries, has contributed to a viable operation.A series of mill operating and equipment modifications has enabled MaclSAAC EXPLORATIONS to achieve the quality and grade of nickel-copper concentrates specified, and at the same time, expand mill tonnage throughput while attaining increased nickel recovenes."

Jan 1, 1992

By D. K. Deardorff, H. Kato

THE transformation temperature of hafnium from hcp to bcc is 1750° + 20 °C in contrast to previously published values by Duwez and fast2 which are believed inaccurate. The Bureau of Mines determined this value by measuring the temperatures at which a sudden decrease was observed in the electrical resistance of hafnium alloys containing up to 18 at. pct Zr, and then extrapolating the temperatures to 0 pct Zr. Duwez1 previously reported a transformation temperature of 1310°C, obtained by use of a rapid-cooling thermal-analysis technique. Later, Fast2 published a much higher value of 1950° 100°C based upon: a) his own determination of 1690°C for the beginning of the transformation range for hafnium containing 5.7 at. pct Zr, and b) his belief that lattice parameters reported3 for Duwez' hafnium indicated i contained 19 at. pct Zr and that the 1310°C value should be associated with that composition. Russell4 subsequently stated that Duwez and Fast probably were reporting their lattice parameters in different units and reassigned a value of 6.0 at. pct Zr to Duwez' hafnium. If this assumption were true, Duwez' hafnium was of approximately the same purity as Fast's, but his transformation value was considerably lower. The reason for this divergence is not known. Fast's value for hafnium containing 5.7 at. pct Zr agrees well with our data. McGeary5 determined a transformation value of 1660°C by metallographic examination of heat-treated specimens, but the zirconium content of his hafnium was not definitely established. The specimens used in this investigation were 1/8-in.-diam rods 6 1/2 in. long, fabricated by hot-swaging bars cut from arc-melted buttons. These buttons were melted from crystal bar hafnium and crystal bar zirconium. The chief impurity in the hafnium

Jan 1, 1960

By Rodney A. Cooper

The Mary River iron ore deposits were discovered in the 1960?s. The high quality of the deposits was immediately evident, and drilling programs were successful in defining a resource adequate for supporting a feasibility study. Through a combination of ownership, market and political forces, the deposits were not developed. Having missed the window of opportunity, the project remained dormant for over three decades. Baffinland Iron Mines Corporation, with its 100% ownership of the Mary River deposits, began trading publicly in 2004. Modern exploration and metallurgical test work began in 2004 and has continued in 2005 and 2006, resulting in total expenditures during this period of almost C$60 million. In May 2006, an engineering team lead by Aker Kvaerner E&C, a division of Aker Kvaerner Canada Inc., completed a scoping study based on the first of five identified deposits. Highlights of that study include direct shipping of high quality lump ore to Europe over a 34 year mine life at a production rate of 10 million tonnes per annum, based on an indicated resource of 309 million tonnes at 66.1% Fe and an inferred resource of 28 million tonnes at 65.9% Fe. Capital costs were estimated at C$1.5 billion. Using iron ore prices approximately 36% below that of the 2006 market, a pre-tax internal rate of return of 15% was estimated assuming equity financing. Payback on initial capital was 5.9 years. The pre-tax life-of-mine cash flow was estimated to be C$6.3 billion. As a result of this study, Baffinland initiated a Definitive Feasibility Study, under the management of Aker Kvaerner, which is scheduled for completion in December 2007. This paper touches on the geology of the deposits, the current resource and the outlook for expansion. Project permitting, construction planning, logistical challenges and ocean shipping considerations are discussed, providing a current perspective on the project scale, scope and timeline for commercial production. In addition, an overview of the Company?s bulk sampling program will be provided.

May 1, 2007

By M. D. Ballain, V. C. Storhok, B. Pesic, J. C. Sever

Northwest Alloys, a wholly owned subsidiary of Alcoa, produces magnesium from dolomite by reduction with ferrosilicon and aluminum. This process produces alkaline by-products in quantities that allow their consideration for use as commercial by-products. Two such products are dicalcium silicate slag, Di-Cal, and magnesium oxide condensate, MgO. The alkaline properties of these materials offer acid neutralizing capability comparable to the traditionally used lime, therefore, warranting a study for their use in applications where the neutralization of acidic waters or process solutions is required, such as treatment of mine waters. In this ongoing study, three mine waters (Bunker HillMine, Berkeley Pit, and Blackbird Mine) were selected for treatment with Di-Cal and MgO. Lime was used as the background control. The solid precipitates were subsequently contacted with pure water at four different pH conditions for stability testing of prepared metal precipitates (expanded TCLP). It was found that neutralization with Di-Cal results in precipitates which are of equivalent to superior stability than those from lime treatment.

Jan 1, 1999

By Bartosiewicz H

A method for the determination of the gas content of coal seams is presented which improves upon existing methods. The method makes use of a gravitational technique for measurement of the gas desorbed. The amount of lost gas is estimated by determining an empirical relationship relating the desorption of gas with time for each sample separately. This is to replace the assumption that desorp- tion follows a square root law with time. Laboratory investigations have been conducted which indicate that the square root desorption law does not hold good for carbon dioxide. Results of investigations on various factors influencing the technique are presented. It is shown that co-efficients of the empirical equation are dependent upon the elapsed time and the period of observation. Data about gas pressure measurements is presented and it is concluded that gas pressure can be approxi- mated to 0.6 times the pressure below a column of water equal to the depth of cover. This estimate is good enough for adsorption tests to evaluate desorption co-efficients. The technique for repressurisation of the sample,

Jan 1, 1982

By G. W. Elger

This report describes pilot-plant studies and an economic evaluation of a process developed by the Federal Bureau of Mines, Albany Metallurgy Research Center, to produce synthetic rutile from a rock-type ilmenite concentrate. In this process, ilmenite blended with coke and lime is smelted in an electric arc furnace to separate most of the iron as salable pig iron and to form a titania-enriched slag of low iron content, which is treated with oxygen and titanium pyrophosphate. The titanium oxides are converted to crystalline rutile; the phosphate glass contains most of the associated impurities. The treated slag is ground and leached with sulfuric acid to liberate rutile crystals, which are concentrated by physical methods. In pilot testing conducted to obtain data for a cost estimation, a synthesized product containing about 88 wt-pct TiO2 and less than 2 pct FeO was extracted from a rock-type ilmenite concentrate containing about 45 wt-pct TiO2. The estimated fixed capital cost (on a mid-1975 basis) of a plant producing 500 tpd of synthetic rutile is $28,290,100. Based on 330 operating days per year, the estimated operating cost for this process is $351 per ton of synthetic rutile. The estimated selling price of synthetic rutile made from rock-type ilmenite is $344 per ton, based on a credit of $160 per ton of pig iron and a 20 pct interest rate of return on investment after taxes.

Jan 1, 1976

By G. Coryell, S. Blaskovich

"A computer model has been developed to simulate the flash furnace and converter operations at the ASARCO Hayden Copper Smelter. The focus of the modeling was to optimize the converter operation to eliminate high matte level episodes in the flash furnace. These episodes (reducing feed to the furnace) resulted from the lack of converter operation scheduling. The model provided ""what if?"" scheduling scenarios that led to increased efficiency of the converter and flash furnace operations.This paper discusses alternatives studied to optimize the converter operation and the development of the computer modeling program, including implementation of the project. The discussion details the results of the project including the conversion from batch to a real time converter scheduling process. IntroductionASARCO's Hayden Smelter consists of a fluid bed drying system, an Inco oxygen flash smelting furnace, Peirce Smith converters, two anode furnaces and two casting wheels, gas cleaning plant, 2800 stpd sulfuric acid plant, 650 stpd oxygen plant and 200 gpm water treatment plant. The process flow sheet of the plant is shown in Figure 1.Over the past several years, the Hayden smelter has been involved in productivity improvement and cost reduction programs. This has been necessary to become a low cost copper producer in today's market. Part of the productivity improvement program was the use of process control to streamline the flash furnace and converter operations. Process control, through the use of computers and electronic controllers, has played an increasingly important role in optimizing processes in the Hayden Plant since the startup of the Inco flash furnace in 1983."

Jan 1, 1989

By Rowlands N. J, Zimmermann D. O

The Engel Model search simulator is described with particular emphasis on preparation of input parameters. The computer has a "black box" role in the same way a telephone or radio is a "black box" in communications. A search technique (sensor) is selected and applied in two stages of'search, namely, reconnaissance and detailed. The model relies on knowing and quantifying the parameters of the target sought and the search technique; this is usually done by analogy studies from available literature and experience. The parameters are then balanced by feasibility studies on the search area. Case histories show that the study makes the user aware of what he is likely to find rather than what he wants or needs to find to be viable. Two case histories are presented: one for Mississippi Valley type lead- zinc deposits and another for stratiform copper. The first study showed particular benefits in the input stage and highlighted the fact that one could expect a lot of encouragement by way of interesting results but with little chance of finding the high-grade,

Jan 1, 1974

By Alim Ullah

The paper discusses the necessity of upgrading low-iron containing ores, giving as an example, NML-Tata Steel Project in the Quebec-Labrador region of Canada. As cooling of pellets is generally a bottle-neck in most pelletizing plants, examples are given of the methods used to improve cooling in the existing plants and a simple, low-cost alternative, tested on a pot-grate system, is presented. The procedure described is applicable to sinter plants also. The trends in iron and steel production worldwide are then given, as well as the reasons for the increase in steel production by the Electric Arc Furnace (EAF) route. The stoichiometric and thermodynamic requirements for producing iron, irrespective of the process, are explained. The different ironmaking processes, especially the Direct Reduction (DR) ones are briefly discussed, outlining recent improvements made to some of them. The pros and cons of producing cooled DRI and Hot-Briquetted Iron (HBI) are given with predictions made for their future growth. An alternative to cold-briquetting of DRI fines is also discussed. Highlights of an ironmaking processes which is at the laboratory/pilot plant stage are given.

Aug 1, 2018

By G. R. Fitterer

In the manufacture of steel by any process the refining period involves the partial elimination of the metalloids carbon, manganese, phosphorus, and silicon, by virtue of their reactions with ferrous oxide. At the end of this refining stage the metal consists chiefly of iron in which small amounts of these materials are dissolved. Unless some deoxidizer is added to the steel at this time, the reaction between carbon and ferrous oxide will continue with such force that it is impossible to form sound steel in the ingot molds. Instead, the product will exhibit a marked porosity due to the formation and trapping of carbon monoxide-the product of the reaction mentioned. However, if deoxidizers are added, steel may be obtained which is dense and free from gas bubbles. At the same time the deoxidation products will remain in the steel as impurities. For example, silicon additions form SiO2 or combinations of SiO2 and FeO. Additions of manganese form deoxidation products consisting of various proportions of MnO and FeO. It is also quite obvious that simultaneous additions of manganese and silicon will form oxide combinations either in the binary system MnO-SiO2 or in the ternary system FeO-MnO-SiO2. Work at the Pittsburgh Experiment Station of the United States Bureau of Mines, in cooperation with the Carnegie Institute of Technology and the Metallurgical Advisory Board, involved the study of such deoxidizing reactions and their products. In this connection considerable information is necessary concerning FeO, MnO, SiO2, and Al2O3, and their various combinations. Some of the most needed data are the melting points of all of these materials. At the outset of this work ordinary methods of melting point determinations were found to be inadequate for various reasons, and the procedure finally selected involved the use of the micropyrometer with occasional corroboration by quenching methods. The reasons for this selection, together with a description of the apparatus, are given in the following pages.

Jan 1, 1932

Asgco’s design of the Arrowhead Ceramic Lagging provides solutions to problems experienced with conveyor belt slippage around the drive pulley and severe wear problems on snub and bend pulleys. Asgco has developed a range of pulley lagging from ceramic, drive rubber and non-drive rubber lagging that is available in abrasion-resistant SBR and MSHA grade rubber for conveyor pulleys from slow belts all the way through to high-speed, high load belts. There is a growing need for a maintenance-free and reliable pulley lagging to ensure conveyor belts run to their highest efficiency.

Jan 1, 2006

By J. R. Patts, A. B. Cecala, E. J. Haas

Exposure to respirable crystalline silica (RCS) remains a serious health hazard to the US mining workforce who are potentially exposed as various ore bodies are drilled, blasted, hauled by truck, crushed, screened, and transported to their destinations. The current Mine Safety and Health Administration (MSHA) permissible exposure limit (PEL) for RCS remains at approximately 100 μg/m3 , but it is noteworthy that the Occupational Safety and Health Administration (OSHA) has lowered its PEL to 50 μg/ m3 (with enforcement dates staggered through 2022 for various sectors), and the National Institute for Occupational Safety and Health (NIOSH) has held a 50 μg/m3 recommended standard since 1976. To examine a method for reducing RCS exposure using a NIOSH-developed video exposure monitoring (VEM) technology (referred to as Helmet-CAM), video and respirable dust concentration data were collected on eighty miners across seven unique mining sites. The data was then collated and partitioned using a thresholding scheme to determine exposures that were in excess of ten times the mean exposure for that worker. Focusing on these short duration, high magnitude exposures can provide insight to implement controls and interventions that can dramatically lower the employee’s overall average exposure. In 19 of the 80 cases analyzed, it was found that exposure could be significantly lowered by 20% or more by reducing exposures that occur during just 10 min of work per 8-hour shift. This approach provides a method to quickly analyze and determine which activities are creating the greatest health concerns. In most cases, once identified, focused control technologies or behavioral modifications can be applied to those tasks.

By J. A. Organiscak

The National Institute for Occupational Safety and Health (NIOSH) Office of Mine Safety and Health Research (OMSHR) has recently studied several redirected scrubber discharge configurations in its full-scale continuous miner gallery for both dust and gas control when using an exhaust face ventilation system. Dust and gas measurements around the continuous mining machine in the laboratory showed that the conventional scrubber discharge directed outby the face with a 12.2-m (40-ft) exhaust curtain setback appeared to be one of the better configurations for controlling both dust and gas. Redirecting all the air towards the face equally up both sides of the machine increased both the dust and gas concentrations around the machine. When all the air was redirected towards the face on the off-curtain side of the machine, gas accumulations tended to be reduced at the face at the expense of increased dust levels in the return and on the curtain side of the mining machine. A 6.1-m (20-ft) exhaust curtain setback without the scrubber operating resulted in the lowest dust levels around the continuous mining machine, but this configuration resulted in some of the highest levels of dust in the return and gas on the off-curtain side of the mining face. Two field studies showed some similarities to the laboratory findings, with elevated dust levels at the rear corners of the continuous miner when all the scrubber exhaust was redirected towards the face either up the off-tubing side or equally up both sides of the mining machine.

Feb 23, 2014

Large GDP increases in the Pacific Rim countries have been accompanied by similarly large increases in demand for oil products. In the case of residual fuels, this demand has been tempered by the substitution of other energy products such as coal or gas.In the region's developing and newly industrialised nations, it has not been possible to make the very large investements in infrastructure which allow other energy sources to be used for transportation. As a result, GDP growth has been mirrored in the demand growth for automotive fuels. Other non-sustitutable products such as lubricants have also benefitted by the region's GDP growth.The combination of a number of years of sustained growth, coupled with increasing quality requirements is now stretching the upgrading capacity of the region's refineries. If, as seems likely, the region continues to enjoy a high GDP growth rate, then this will be accompanied by increasing reliance on finished products coming out of the Middle East. The owners of the most simple form of refinery in which crude is simply distilled and the naphtha reformed into petrol will face major capital investments. If they decide not to bear this cost, they will face increasing problems in selling their surplus residual fuel oil at an economic price. Quality will become an increasingly important issue. Not only in the well publicised areas such as unleaded petrol, but also for products such as lubricants which play a major role in the efficiency of modem equipment. Quality of service such as hours of opening, ease of access, and service station facilities will also become increasingly important as the oil companies use these to attract customers and gain brand differentiation.

Jan 1, 1990