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By P. E. Cavanagh

Introduction A comprehensive study of the economics of processes for smelting iron ores has been made by the Ontario Research Foundation on behalf of the Ontario Research Commission. This survey has included investigations of all processes in commercial use, and proposed processes which are still in the experimental stage. The two main objects of this work were to discover (l) whether any known processes would be particularly suited to present and future Canadian conditions, and (2) whether any new process would be of assistance in solving the present scrap shortage in Canada. The future prospects of the Canadian iron smelting industry have changed radically in the past ten years. For nearly twenty years before 1939 no iron ore was mined in Canada. The ore used was imported, mainly from the United States and Newfoundland. The economics of iron blast-furnace smelting always force the location of blast furnaces near the source of coal for making high-grade metallurgical coke, and near the market for iron and steel, rather than near the iron ore. Blast-furnace installations in Canada are confined to the north shores of the Great Lakes with ready access to United States coal and ore and the major Canadian markets, and to Nova Scotia near the coalfields of that Province. This distribution of primary smelting capacity naturally results in relatively high prices for iron and steel in the West, the North, and in Quebec.

Jan 1, 1948

By D. M. Davidson

The economics of geologic exploration have changed materially in the past decade primarily due to the change in three basic factors, namely, increased wages and salaries, increased cost of materials, and a greater complexity in methods of exploration. Following the general economic pattern over the past ten years, exploration costs, have, in general, increased, although there is one heartening exception. A comparative picture is complicated because of advances in techniques which ensue from the introduction of new methods and devices largely for aerial exploratory work, Some of these methods were either in their infancy or unknown before World War II. Geological exploration may well be considered as a form of applied research. True, it has peculiarities from this standpoint some advantageous, others disadvantageous, Some of the advantages lie in the fact that exploration success does not involve the production of a new product which necessitates advertising expense and marketing problems. In normal times there is a well established market for the fruits of a successful mineral find. The outstanding disadvantage of exploration lies in the enigma of deciding when to quit if the sought fop prize is elusive. In the search for buried treasure, man?s curiosity is apt to color his judgment. Even the so-called detached scientist may fall 'all too readily into the wishful thinking of the old- time prospector who is lured on by the thought that the next pull from the drill hole, or the next round from the face will reveal a bonanza. It involves mature judgment and experience to ascertain the stage in exploration when further work is not justified.

Jan 1, 1958

By Thomas E. Shufflebarger

Glass sand is a virtually pure, fine- to medium-grained, quartz sand. It is produced in 25 states from a variety of chemically different source rocks. Deriving their raw material largely from either friable sandstones or loosely consolidated sands, 59 operations produced 14.9 million tons of melting sand in 1976. About one-third of this tonnage was obtained from the Oriskany and St. Peter Sandstones. Glass-sand prospects are discussed in this paper with regard to chemistry, environment, transportation, and costs. Demand for a quality product will range from 36 million to 46 million short tons in 1995.

Jan 1, 1978

This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By W. M. Myers

Certain minerals possess inherent color and other properties that make them suitable for the pigmentation of paints, mortar, plaster, concrete, face brick, and other materials. Their production is one of the most ancient of mineral industries and their use by primitive man is well known. These natural pigments have some economic factors in their favor, particularly wide geographic distribution, low cost of production, ease of preparation, chemical stability, and permanence in use so that they continue to form the basis of a small but useful industry. When used in paints such pigments act as a filler and supply body and opacity in addition to color. Natural mineral pigments are prepared for the market by the comparatively simple operations of washing, grinding, blending, and calcining. Any one, or all of these processes may be applied to a single pigment. The development of synthetic pigments and the use of by- product materials have introduced competition with the products of nature and are having a growing influence on the economic position of the mined minerals.

Jan 1, 1949

By C. H. Lieb

ONE astounding fact in the production of petroleum is the comparatively recent realization by producers that flowing production is the cheapest crude produced. About 1910 or even later, operators actually endeavored to get a producing well to pumping as quickly as possible after completion. A well was not really considered to be completed until it was operating on the pump. Remarkable progress has been made since then. It was not until about 1920 that producers began to take a serious interest in pressures and to think a little about proper methods of handling oil wells. Pressure gauges were installed, and records of pressures maintained, which was quite an innovation. Desultory experiments were made with tubing of different sizes, as well as experiments with placing the bottom of the tubing string at different levels in the well. Probably the first important departure from customary procedure was about 1926, during the Seminole development, when gas lift

Jan 1, 1936

By Paul M. Tyler

MUCH information concerning pegmatites which was thought to be true a few years ago has been proved false, and what is now actually known about some pegmatites is not true of many others. The erratic and seemingly unpredictable structure and variable composition of this class of mineral deposits has been widely emphasized. Even parts of the same pegmatite body exhibit marked differences in texture, mineral composition, width, and attitude. Constructive geological thinking in respect to pegmatites now aims to establish general laws rather than to stress the confusing diversity of features having no special economic significance.

Jan 9, 1953

By Henry Hebley

IN preparing this paper it has been the aim of the writer to keep the problems of both producers and consumers in mind. Until now, no attempt has been made to familiarize each group with the other's practice and limitations. This paper is an effort to acquaint the readers with some of the factors pertaining to the problem and cost of mining and preparing steam coal, and also to the economics of producing steam with such coal. In recent years all lines of endeavor have turned to intensive mechani-zation in order to lower the unit cost of production. The average fuel consumption in steam electric generating stations has dropped in 20 years from 4.0 lb. to 1.4.1b. per kilowatt-hour; while the modern power station can generate 1 kw-hr. on a fraction under 1 lb., or 13,000 B.t.u. coal. Also, the amount produced per man has in that same period risen from 3.8 to 8.2 tons, owing to the use of modernized equipment below ground for coal cutting, drilling, shooting, loading, hauling and hoisting. Unfortunately, the rapid speed of 5 tons per minute of operation at which the coal is loaded mechanically precludes any appreciable removal of impurities at the coal face, so that the raw coal is hoisted containing a markedly higher percentage of impurities than the hand-loaded coal, which was subjected to the scrutiny of the miner during loading. Also, during the past 20 years, certain seams of coal lying close to the surface have been made economically available by the improved design of electrically operated shovels and draglines for the removal of overbur-den running as high as 56 ft. This strip coal frequently contains so much ash in the raw state (Table 1) that it would have no sales value. There-fore, coal preparation must be adopted to beneficiate the raw product. Some seams in the United States have a decreasing ash content with decreasing size, owing, in all probability, to the fact that the coal is friable while the impurities are hard, causing a concentration of the low-ash material in the fine sizes. Illinois No. 6 coal being rather hard, naturally the reverse is true.

Jan 1, 1937

By W J. Dyck

Past attempts to establish an integrated steel industry on the West Coast of Canada have been unsuccessful for at least three reasons: (a) insufficient reserves of a suit-able iron ore supply; (b) a relatively small local market for iron and steel; and (c) the non-availability of an economical process to produce primary iron on a small scale. Today, the reserves of economically mineable ore deposits are ample to support a steel production of 100,000 to 200,-000 tons per annum. The local market has increased so as to be able to absorb most of this capacity. With-in the next few years, a small integrated steel plant, including the "H-Iron" direct iron ore reduction process for electric furnace charge stock production, will be able to show a profitable operation. Introduction

Jan 1, 1963

By E. C. Wright

FOR many years the cost of making pig iron and steel in the Birmingham district has been about the lowest in the United States. The close proximity of the important raw materials such as coal, iron ore, limestone, and the large available scrap supply made it possible to assemble all of the important ingredients necessary for steel- making with only nominal costs for transportation. Both iron ore and coal were being mined in this district at one time for about $1 per ton from underground operations. At that time mining wages were low everywhere and the labor rate in the South was considerably below that of other mining districts. This situation persisted until the emergence of labor unions as an economic and political force, emigation of southern labor to northern plants, and continued growth of industry in the South in the years following the depression of 1932. Since that time union organizing of miners and steel workers throughout the nation has increased labor costs in mining and steelmaking. This influence has been felt particularly in underground mining operations since the proportion of labor cost to total cost is still high. The previous advantage in basic labor rate in the South has been almost entirely eliminated by the equalization of labor rates in basic industries by national unions. Since 1945 these influences have been especially noticeable in increasing the cost of mining coal and iron ore in the South. The northern steel districts are still being largely supplied with iron ore from the Minnesota open-pit mines and the cost of this ore has not increased nearly as much as the cost of ore obtained from underground mines in Birmingham. A similar situation exists in coal mining; the thinner seams in Alabama are not so amenable to mechanization as the northern mines and, as a result, the output per man-day in southern mines is only about three tons of coal as compared to five or six tons per man-day in the large captive mines of West Vir-

Jan 1, 1950

By P. M. Sullivan

A physical beneficiation flowsheet was designed by the Bureau of Mines for reclaiming and recycling metal and mineral values contained in municipal incinerator residues, and a continuous processing plant was installed. Residue samples collected from incinerators located in various parts of the country were processed at a rate of 1/2 ton per hour. Continuous screening, shredding, grinding, magnetic separation, and gravity concentration techniques were applied to produce metallic iron concentrates, clean nonferrous metal composites, clean fine glass fractions, and tine carbonaceous ash tailings. Research to develop systems for refining and upgrading the reclaimed metals and glass into marketable products is also underway. From the engineering data developed in the continuous processing plant, evaluations of the capital and operating costs for plants with capacities of 250, 400, 670, and 1,000 tons of dry incinerator residues per day were made. Research on a parallel system to separate and recover the metals, minerals, glass, paper, and plastics from raw, unburned refuse it currently underway, as are studies on the use of air classification to separate the refuse into organic and inorganic fractions.

Jan 1, 1971

By L. Rodd, C. Walker, T. Koehler

"The energy content of slag represents approximately 80% of the total energy inputs to a laterite nickel electric smelting furnace. Conventional slag handling methods produce only low grade heat and the entire thermal content of the slag is wasted. A heat recovery system proven on BOF slag in the mid 1980's can be adapted to a laterite nickel rotary kiln electric furnace (RKEF) plant. Slag is granulated using a high velocity air jet inside a waste heat boiler to produce slag granules. Granules are cooled during flight via radiation to water-cooled boiler walls and by convection to the granulation air. This system has the potential to recover 80% of the total slag energy in the form of hot air and steam.Integration of the recovered slag energy into the RKEF smelter can be achieved by a number of methods, including the use of preheated air at the ore dryers, kiln or existing power plant. Energy from the slag boiler may be used to reheat boiler feed water from the power plant or to produce superheated steam and generate electricity. The heat recovery system can provide up to 25 - 30% of the total electrical requirement of each RKEF line and a reduction in CO2 emissions of 234,000 tonnes per year.The total cost of slag heat recovery, including CAPEX and OPEX, is $2.5/GJ, which is competitive with using coal when CO2 credits are $18 per tonne. With Clean Development Mechanism (CDM) carbon credits currently selling at €13 ($20 USD) per tonne CO2, there is considerable opportunity for slag producers in regions including South America, Korea, Indonesia and Africa. Increasing fuel costs and more wide-spread legislation for GHG emissions will likely create conditions in which slag heat recovery could generate a favourable return on investment."

Jan 1, 2010

By James W. Estep

The sulphur shortage that has occurred in the past two years has directed attention more and more toward sour natural gas reserves, Wellhead values of sour gas vary widely depending upon the acid gas composition, location, market conditions, and necessary processing charges. Preparation of a saleable residue gas is considerably more involved and expensive than that normally encountered in treating a sweet gas. Recent revisions in sales gas specifications have increased capital costs and processing charges. The presence of hydrogen sulphide and carbon dioxide in a natural gas contributes to shrinkage factors that may approach 50%. Fuel required by the gas sweetening process and sulphur slant tail gas incineration also contributes to a further reduction in the volume of residue gas available for sale. The additional processing facilities involving gas sweetening, mercaptan removal, expanded utilities, sulphur recovery and sulphur handling, all demand additional operating and maintenance staff. A favorable sulphur market under certain conditions may justify the processing of sour gas whereby sulphur is either a by-product or a co-product, Five typical cases involving different compositions of sour gas are presented for evaluation. Capital costs, operating problems, and operating costs are presented in detail for full economic evaluation

Jan 1, 1967

By P. T. Allsman

INTRODUCTION The honor of being the recipient of the Mining Society's Daniel C. Jackling Award for 1966 imposes on me the responsibility to search for the subject that I would be best qualified to discuss. It seems that my experience in the mineral industry — nearly 15 years in private and 30 years in public employment — should uniquely qualify me to comment upon the relationships between the mining industry, mineral engineering as a profession, and government, and the changing economic, technologic, political and social changes that dictate their relationships. Such conditions, the increasing knowledge of the world mineral resource base, the greater demands of an expanding population with a rising standard of living, shall be evaluated with respect to our profession — mineral engineering. In all of these forty or so years, I have been in close touch with many phases of the mineral and energy resource industries, especially those of the United States. Particularly during the past 10 years, I have had a ringside seat at the "goings on" in Washington. During all of this period I have observed and analyzed many of the problems of the industry and its relations with the government. During the past few years, I have had increased opportunity for doing research and have found a need to learn something about the mathematical techniques that are undergoing such a revival since electronic computers were developed. One of these techniques is multivariate analysis, which is a system for correlating a large number of complex variables. By applying this technique to the seemingly chaotic present-day situation, there emerges a course of steady improvement in the minerals resource industries that wars, depressions, and political strife have failed to obstruct for long. In short, I advocate a need for new concepts in mineral engineering to cope with the changes, pos- sibly adding many more specialized areas on one end of the spectrum, and broad engineer-generalist approaches at the other. The meeting place shall be where the intricate mineral resource problems at the frontier of knowledge merge into the socio-techno-logical problems of the world. HISTORICAL INVOLVEMENT OF GOVERNMENT IN MINERAL RESOURCE PROBLEMS Involvement of government in mineral resource problems undoubtedly is as old as government itself. But passage of the Mining Act of 1866, superseded by the Act of 1872, was the first major entry of our Federal Government into the problems of mining. Passage of the law was necessary to resolve many conflicting claims and disputes in mining. The General Mining Law of 1872 and the Mineral Leasing Laws of 1920 apply to millions of acres of public lands and to certain privately owned land on which the mineral rights have been reserved to the Federal Government. The extensive involvement of government in the mineral industry business today often comes as a shock to the mineral engineer who has begun to climb the ladder to the top in his company. He is often poorly prepared to cope with the situation and becomes frustrated and even hostile. Better knowledge of the role of government perhaps would ease his situation. In our political system, private industry is responsible for producing minerals. To make certain that the production is adequate for a peace-time economy, and to guarantee the Nation's security in an emergency, the Federal Government finds it expedient to develop policy and engage in regulatory, educational, and research activities. A few examples will illustrate the varied role of government in relation to mineral problems. In varying degrees many agencies of the Executive Branch of Government have responsibilities that influence the functioning of the mineral and energy industries. In addition, of course, Congress, the Judiciary, and State and local governments exercise great influence. The Department of the Interior is primarily responsible for activities to promote the development and conservation of mineral and fuel resources, and the

Jan 1, 1967

By E. P. Pfleider

Important economic planning by industries, companies, financial firms and governments is predicated on estimates of future growth potential. Prior to the passage of the Taconite Amendment by the people of the State in November 1964, various admittedly conservative forecasts were made of the future of Minnesota's iron ore industry. Since that date, 3 new taconite plants are under construction, 2 are being expanded, one has just gone "on stream," and a seventh is in the design stage. These plants have a total capacity of about 35 million tons of pellets annually. The pessimism of 1964 today is being replaced by unbounded optimism. In the light of such recent developments, it becomes essential to update forecasts related to production, employment and capital investments. New projections show 50 to 58 million tons of pellet production from Minnesota by 1975. This tonnage, together with some 6 to 8 million of natural ores, should provide an annual full-time employment of 15,000 by the mining companies, plus 700 in related railroad and power producing activities and 1000 in plant construction. Total capital investment in new plants should reach $1.5 billion by 1975 and $2 billion by 1990. These current estimates indicate that the conservative goals as set in 1964 for the year 1990 should actually be achieved by 1975 or 1980. BACKGROUND Various forecasts1,2,3 have been made of the future consumption and production of iron ores within the United States. The most recent of these is by Harrison,1 delivered at the American Mining Congress meeting in Las Vegas in October. His estimates reflect the latest iron ore developments on a world wide front as well as the accelerating trend toward pellets. Minnesota's Natural Resources council prepared a detailed report in 1964 outlining the various factors that affect the future of Minnesota's iron ore industry. It presented estimates predicated on the

Jan 1, 1967

By AIME AIME

THE petroleum economics session," held on Wednesday morning, Feb. 20, 1929, presided over by Campbell Osborn, chairman, proved to be of un- usual interest and resulted in serious and constructive discussion of the papers presented. The first paper on the program, "Gasoline Economics and Refinery Operation," was by H. J. Struth, petroleum economist of the Gulf Publishing Co., Houston, Tex. While this paper was intended to cover the re- finery situation, it also presented the author's reasons for believing that the oil producer should give cognizance to gasoline demand as a most reliable barometer by which to parallel the production of crude petroleum. The discussion which followed brought out some interesting points in connection with the immediate outlook for the industry as a whole during the present year. Some advanced the opinion that, regardless of the out- come of proration efforts, the refiner is in a position to conduct his operations on a reasonably profitable basis, provided that he exercises control over them. This would mean running less crude and resorting to wider utilization of cracking to produce the gasoline demand. Thus, if the refiner uses diligent care in scheduling his still runs, the producer will be obliged to carry over a large stock of crude this year, unless he is able to keep production below the limits prescribed by the demand for gasoline.

Jan 1, 1929

By I. M. Arbuthnot

Over the last five years, a large number of small to medium sized carbon-in-pulp gold treatment plants have been built in Australia, most designed to treat between 250,000 -1,500,000 tpa of ore. In many cases, the primary requirement was to get a plant built and operating in a short period of time and at minimal capital cost, relating to the limited capital resources and tight cash flow positions of these relatively small mining companies. Since the inclusion of both pre-leach and tailings thickeners resulted in an obvious and significant capital cost, most plants were built without thickeners, without doing a detailed cost-benefit analysis on their inclusion, However, the increasing use of High Rate Thickener?s (HRT s) in the mineral processing industries resulted in a reassessment, in some cases, because of their considerably lower cost. This reassessment was triggered primarily by the need to conserve water in arid mining areas, where borefields were costly to install and water was limited. It has become apparent, though, since startup and operation of these installations, that the savings in cyanide consumption is also a very significant factor and can be used as a primary justification for the installation of a HRT in many cases.

Jan 1, 1991

By V. A. Evans

The preparation of a paper reporting fluorspar economics in the United States at one point in time could have been somewhat complicated be- cause of the number of producers, both large and small, that derived production from different locations throughout the Western U. S. and the Southern Illinois and Western Kentucky fluorspar districts . Companies such as Allied Chemical and William- son Mining operated in the Jamestown district of Colorado. In Walden and Salida, Colorado, the Colorado Fluorspar Company operated mines and mills.

Jan 1, 1986

By K. G. (Ken) Thomas

"This paper gives an insight into the various processes available to treat gold ores. A brief overview is given of the various types of refractory gold ores. Particular emphasis is given /0 comparing the costs of oxide vs refractory gold ore processes, inclusive of grinding through to dore bar.HistoryThro ugh time gold has been recovered from the earth's crust by various mean s. Five major historical steps can be identified for metallurgical processing as shown in Table I .Gravity concent ration started with, for example, river bed panning and developed to more sophisticated processes such as the Johnson concentrator, belt concentrator and jigs. The South African gold fields were a major developer of gravity concentration processes during the first half of the twentieth century.As coarse free gold became depleted, stamp milling, in conjunction with amalgamat ion , was developed. Basically, rock was crushed under large mechanical hammers an d the gold collected in mercury . The mercury was then evaporated in a retort to leave sponge gold for further fire refining.As deposits became deeper and gold finer, the gold became more difficult to recover ; fine grinding was required to liberate the gold. In the 18905, MacArthur and the Forrest Brothers of Glasgow, Scotland, introduced the cyanide pro cess for dissolution of gold and its subsequent precipitaiton by means of zinc. This process, in vogue until the early 1970s, was commonly referred to as the Merrill-Crowe process for recovering fine gold .Activated charcoal was used as a means of recovering gold from solution in the 1880s, especially in chlorination plants in Australia( l). Two factors probably retarded the development of carbon instead of zinc-based processes during those year s. First , there was no satisfactory procedure for the elution of carbon to allow its recycling and, second, the development of the Merrill-Crewe process for gold recovery by zinc cementation probably discouraged any further work on the use of carbon"

Jan 1, 1991

By S. B. Bhagwat

The United States has abundant coal resources that could last at least another century. and probably longer at present consumption rates. Geographically, the coal resources are distributed over the entire nation including Alaska, although there are no coal deposits in the highly populated areas on the two coasts. This allows free access to the coal, but makes transportation more expensive. Not all coals can be utilized equally because they differ vastly in quality. The sulfur content of coals, considered as the most detrimental acid rain-causing element, varies from as low as 0.3 percent in some areas of the western U.S. to 5 percent or more in parts of the Midwest. The chlorine content, which causes corrosion of plant hardware, also varies regionally. The 1990 amendments of the Clean Air Act of 1963 (CAA) require that emissions of sulfur be restricted and rolled back in two stages by the year 2000. There have been a number of reports expressing concern about the future of the industry in the states where high sulfur coal is produced. The remedies devised by the federal government and many coal-producing states in the past to "se-cure" the future of the regional coal industries have focused on the physical task of removing sulfur rather than the economic challenge of doing so at a cost that will enable high-sulfur coals to survive and compete. The past remedies, generally, were not specific enough to account for the characteristics of regional coal deposits and did not look at the coal market as an integrated national and international entity. The State of Illinois has, in recent years, taken a more comprehensive approach to the solution of the problem.

Jan 1, 1992