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By G. S. Beaumont

This report presents a programme of work to demonstrate the use of a surface-based centralised computer control system for the remote monitoring and control of underground conveyors in a US coal mine. The system selected for demonstration was the 'Dynalink' Micro MINOS system which is manufactured by Hawker Siddeley Dynamics Engineering Limited. The site selected was Barnes S Tucker Lancashire No. 20 Mine located near Carrolltown, Cambria County, Pennsylvania. The system concept, operating and application software was designed and developed by the. British National Coal Board. The report describes the selection of the site, specification of the system requirements, commissioning, operation and evaluation of the system under typical US mine operating conditions. Experience with the system, based primarily on the system reliability and performance of conveyor control, was favourable. Mine management personnel felt that the system had successfully achieved its objectives and were keen to expand monitoring and control to other activities.

Jan 1, 1986

This report presents the results of a study for the Bureau of Mines to compare loan terms for non-fuel mineral projects in developing countries, from various International Financial Institutions (IFIs), and from private sector commercial sources. The study compares IFI and commercial loan terms for seven mineral projects in developing countries. The International Financial Institutions represented are: ? International Bank for Reconstruction and Development (World Bank) ? International Finance Corporation (IFC) ? Inter-American Development Bank (IDB) ? Asian Development Bank (ADB) ? International Monetary Fund (IMF) In addition, the costs of financing for these mineral projects were compared with the costs of long-term debt to the five largest U.S. mineral producers.

Jan 1, 1986

By A. J. Magerowski

Energy consumption is a main component of operational costs for the comminution of mineral bearing ores. Reduction of energy consumption has continually been addressed by mill operators and equipment manufacturers. Our testing over the last few years strongly indicates that the overall energy needed to comminute a mineral bearing ore can be brought down significantly, if more work is done in the crushing stages of the comminution circuit.This calls for uprating of the conventional crushing equipment into a new generation of crushing equipment to produce finer products. This will result in the emergence of new ideas in the design and application of equipment and corrnninution circuits.

Jan 1, 1986

By Rodney R. Koch

The phys ica l properties of gold should faci li tate its detection. However, the average concentration of gold in the ea rth's cru st precl udes the ability of geophys ical methods to detect the metal directly. In order to effectively pursue geophys ical detection and location of gold mineralization there must also be geological input - i.e. a model. This will lead to the selection of the appropriate geophy ical techn ique(s) in the fo llow-up programs. Interpretation of the fie ld survey data is of con iderable importance in expl oration geophys ics. Analytical techniques such as cont inuation, fi ltering, and spectral analys is, are now routinely empl oyed in the analys is of survey data to aid the interpretation process. The uccessful application of geophysical methods and the use processing techniques is demonstrated by two recent Saskatchewan discoveries. The first, the Star Lake 21 Zone, with reserves of 230,000 tons grading bener than 17.14 git Au associated with a disseminated sulphide quartz-bearing shear zone yielded geophysical anomalies that were distinctive, obvious, and would have lead directly to its discovery. The econd , the Laurel Lake Prospect, with ore grade intersections of 28.0I git Au and 52 .46 git Ag· over 5.49 m, resulted in numerous geophysical anomalies. However, none of these anomalies demonstrated association with the mineralization until processed results indicated that structural features crosscuning regional trends were important cont rol mechanisms for the mineral ization.

Jan 1, 1986

By Rubén Céspedes

El carbón es un combustible utilizado en la industria del cemento -en tanto fuente de energía calorífica para el uso alternativo o combinado del carbón. Por ello, el presente texto señala el empleo del carbón en la industria minera a través de un estudio de factiblidad que indique la rentabilidad del cambio y sus aspectos como características del carbón a utilizarse, innovaciones a equipos a montar y la influencia del carbón a utilizarse, así como se plantea la conversión del petróleo al carbón

May 1, 1985

By Nelson Rivera

El presente texto analiza la crisis económica y su relación con el Banco Minero. Para ello, se revisa las dos últimas recesiones económicas que tuvo el Banco entre 1975 y 1982, donde la crisis se agudizó por una caída en los precios de los metales y una inflación de costos que no pudo ser transmitida al precio de venta. Como consecuencia de ello, las empresas mineras que tuvieron préstamos, acusaron pérdidas en sus ejercicios e incumplieron en el pago de sus obligaciones. Como medida anti-crisis, el Banco Minero estableció comisiones de alto nivel para evaluar las situaciones y recomendar la dación de dispositivos legales que permitieron asistir a los Pequeños y Medianos mineros en la restitución de liquidez mediante préstamos sobre liquidaciones a precios deprimidos, Asimismo, generó la consolidación, refinanciación y moratoria de los clientes que estaban en suspensión de pagos de las obligaciones contraídas con el Banco Minero y la creación de líneas de crédito especiales para la Pequeña Minería.

Mar 1, 1985

By Gerald C. Smith

Introduction Newmont Mining Corp.'s Carlin Gold Mining Co. mines gold ore and waste material from four open-pit mines in Northeastern Nevada. Combined production rate is 24.5 Mt/a (27 million stpy). The company is producing gold bullion from the 2.4 kt/d (2600 stpd) Carlin Mill No. 1. and the 2.3 kt/d (2600 stpd) Maggie Creek heap leaching plant. In August 1985, the 6.3 kt/d (7000 stpd) Carlin Mill No. 2 at Gold Quarry came on-line. The total combined throughput of 11.2 kt/d (12,000 stpd) will make Carlin Gold Mining one of the largest US gold producers. Feasibility studies are underway to increase the total gold out-put from Gold Quarry. This will be done by adding a continuous dump-leaching process that will recover gold from lower grade ore. History In 1961, Newmont exploration geologists located claims in the Lynn Creek mining district near Carlin, NV. An exploration drilling program revealed significant gold mineralization. A stepped-up drilling program revealed an ore body with an estimated 10 Mt (11 million st) of ore containing 109 t (3.5 million oz) of gold. Test results in 1963 allowed metallurgists to develop the flowsheet and design for a 1.8-kt/d (2000-stpd) countercurrent decantation (CCD) cyanide plant. Carlin Gold Mining Co. was formed to operate the property. Carlin purchased its first mining equipment in 1965. This consisted of two Bucyrus-Erie 2.7 m3 (3.5 cu yd) shovels and nine 27.2 t (30 st) Wabco Haulpak trucks, two Inger¬soll-Rand track-mounted drills, one Chicago Pneumatic T-650 rotary drill, one rubber tired Michigan 280 dozer, one Caterpillar D-8 36A track dozer, one Caterpillar 16 motor grader, and the necessary ancillary equipment. The fleet was capable of mining 3.2 Mt/a (3.5 mil¬lion stpy) working two eight-hour shifts, five days a week. In 1967, one P&H 1500 3.8 m3(5 cu yd) diesel electrical shovel and three 59 t (65 st) Dart trucks were added to the fleet, along with a Chicago Pneumatic rubber tire mounted rotary drill. This equipment addition increased the mining capabilities to 5.7 Mt/a (6.3 million stpy). Three separate pits, the Main, East, and West, within a 1.6-km (1-mile) radius of the Carlin mill were being mined. The crew consisted of 46 hourly men and three supervisors. This equals 497 t/ total hourly manshift (548 st) or 407 t/total manshift (515 st). Rising gold prices in the early 1970s allowed lower grade deposits to be mined at greater distances from the mill. The Boot-strap pit, 19.3 km (12 miles) north of Carlin, was started in 1973. Two Hough 45.4 t (50 st) front-end loaders, four Wabco Haulpak 45.4 t (50 st) trucks, and a second track type D-8H dozer were added. The higher grade ore was trucked to the Carlin mill using three

Jan 11, 1985

M.S. Azun I have many objections to the content of the author's paper. Before discussing it, however, I would like to repeat the property of semivariogram function. Second order stationary properties of regionalized variables (ReV's) such as semivariogram function y(h) are perfectly known in geostatistics. Also, the kriging equations in the language of mathematical statistics using second order stationary properties are well understood. However, the way to use the sample (estimated) semivariogram function in any one of the kriging procedures is vague. The sample semivariogram function is given as follows: [ ] where N is the total number of samples, Xi is the sample value at the i - th location, Xi+h is the sample value at the i + h - th location, and h is the distance among the samples. An estimation variance of sample semivariogram function of first lag is smaller than that of higher order lag. The theoretical semivariogram function reaches the variance of samples asymptotically. But this is not easily observable because of the larger variation involved in the estimate of semivariogram function. In general, an estimation procedure is done for h = 0, 1, 2, up to the greatest integer less than N/2, even though sample semivariogram function can be computable through N-1. After estimating semivariogram function, the critical question of how to model sample semivariogram function arises. As seen in the above equation, sample semivariogram function is discrete and can be smoothed by the model being selected. Therefore, modeling of sample semivariogram function is the most important step in geostatistics. It not only smoothes a discrete function but also affects the results of the kriging procedure. When the only aim is to model the semivariogram function, which is the basic point of the author's paper, one can employ any fitting techniques, such as curve fitting, or any arbitrary functions, which are called submodels in the paper. The term "arbitrary function" is used rather than "submodel" because there is no basic understanding of developing them. The author suggests that the sum of those submodels can also be used for the modeling of sample semivariogram function. The combination of any arbitrary functions brings many problems instead of giving an insight of the domain structure considered. The author used two arbitrary functions and the nugget effect in response to sample semivariogram function (Fig. 10). For the same example, he stated that the parameters involved in the mixed arbitrary function model can be accepted when the discrepancy between sample semivariogram function and the model is small visually. For verifying the fitting behavior of any selected model, one should not be contented with the visual satisfactory. Some statistical measure such as goodness of fit has to be used. The author's practice is no more than an exercise in curve fitting without any fundamental understanding or conceptualization of the underlying physical mechanism. Furthermore, the selection of any model is not an easy task if the purpose is the search for the "best" response to the observed second order properties of ReV's. I suggest that the Markovian model (Azun, 1983), on the basis of a theoretical understanding of underlying mechanism, which gives more information about the occurrence of regionalized variables, is used to respond all properties of ReV's. There are a lot of problems for modeling of one-dimensional sample semivariogram function. Thus, it is not appropriate to go to higher order dimensional sample semivariogram function modeling. In the meantime, I would recommend that one can connect the values of standardized sample semivariogram function rather than simple values of semivariogram function in the two-dimensional estimation. The standardized values can be computed in dividing the semivariogram function value by the number of sample pairs involved in each lag regardless of the directions. In conclusion, geostatistics is an interdisciplinary area in mining that uses the principles of mathematical statistics. Thus, it should not violate any probabilistic and statistical rules. When Matheron was developing the theory of geostatistical study in the early years of geostatistics, many mining people had a reservation accepting the geostatistical tools. However, this does not mean that we, the geostatisticians, might try to convince those people using some "strange" tools or rules as some authors implied (Baafi and Kim, 1984). Instead, we have to develop and explain the geostatistical tools staying only in the framework of statistical concepts and properties. References Azun, M.S., 1983, "Stochastic Process Modeling of Spatially Distributed Geostatistical Data," Columbia University, Ph.D. Thesis. Baafi, E.Y., and Kim, Y.C., 1984, "Discussion - Comparison of Different Ore Reserve Estimation Methods Using Conditional Simulation," Mining Engineering, Vol. 36, No. 3, p. 280. Reply by J.M. Rendu The interactive method proposed by Rendu allows practitioners to develop semivariogram models that take into account not only the numerical information obtained by sampling, but also highly significant additional information that often cannot be quantified. The geology of the deposit - including hypotheses concerning its genesis, sampling methods, assaying methods, and mathematical methods used to calculate the semivariograms - all have an influence on the numerical results obtained and on how these results should be interpreted. If all the information concerning the spatial distribution of values in a mineral deposit was contained in the sample values, it could be argued that statistical techniques alone would produce optimum models. However, this is rarely, if ever, the case. Methods that allow the user to take into account his experience and his geologic understanding of the deposit should not be rejected for the sake of theoretical statistical purity.

Jan 11, 1985

By Ray E. Harris

Introduction A resource of more than 122 Gt (134 billion st) of minable trona and mixed trona and halite underlies an area of about 3400 km2 (1300 sq miles) west of Green River, WY (Culbertson, in preparation) (Fig. 1). In 1982, the total domestic consumption of soda ash (refined trona) was 6 Mt (6.7 million st) (Kostick, 1983). About 90% of this came from Wyoming trona. This enormous deposit occurs in the Wilkins Peak Member of the Green River Formation that is of Eocene age. This formation is derived from sediments deposited in a large lake named Gosiute. Lake Gosiute occupied the Green River Basin in southwestern Wyoming some 38 to 54 million years ago. The Wilkins Peak Member represents a restricted, evaporite-rich cycle of deposition when the trona deposits were formed. A total of 42 trona beds are known. Of these, 25 are of sufficient thickness and extent to be considered minable (Culbertson, in preparation). The production of sodium compounds from the trona deposits in the Wilkins Peak Member began in 1896 when wells were drilled within the present boundaries of the town of Green River. The purpose of the drilling was for extraction of sodium carbonate brines. Sodium carbonate (sal soda) was removed from these brines at a plant in Green River. Bedded trona was discovered in 1938 in a core from an oil well drilled south of Westvaco. In 1947, the underground mining of trona began. Production has continued from 1948 to date. Currently, five companies are mining trona and producing soda ash from the Wilkins Peak Member in Wyoming. Additionally, Allied Chemical Co. mines and processes trona for Church and Dwight's sodium bicarbonate (baking soda) operation in Green River. Competition in the soda ash industry depends primarily on the efficiency of mining and refining, allowing for lower-cost production. Newer plants and mine designs should increase efficiency. Solution mining holds promise as an even lower-cost method of mining. Employment in the soda ash industry is declining since the newer mining and refining methods are less labor intensive. Declines in employment, however, may be offset as production increases. Due to the large resource, the availability of minable trona should not be a problem for perhaps hundreds of years. Geology of Wyoming trona deposits Forty-two beds of trona or mixed trona and halite occur in the

Jan 10, 1985

By G. T. Lineberry, L. Adler

Due to safety-imposed constraints on clearances for mobile bulk handling equipment, it is necessary to optimally select a unit based on speed and size. The unit cannot be both large and fast. Since output is proportional to both size (or capacity) and speed, the combination must be carefully examined to maximize output. A simple graphical procedure and a calculus-based solution are presented to accomplish this. While the procedure applies to all mobile bulk handlers, as an example of the solution technique, attention is focused on shuttle cars. Background Major variables To fully define a bulk handling problem, the conditions, equipment, and activities must be characterized. The conditions and activities, when lumped together, are termed "encumbered space," since they "act to impede motion, as with a burden" (Lineberry, 1979). The insertion of mobile bulk handling equipment into what is already a difficult set of conditions and activities compounds the state of encumbrance, as limited space is competed for by many normal and life support systems. Long (1972) recognized the effects of design criteria, including road width, on haulage vehicle speed and, therefore, on production. Velocity -clearance curves Velocity-clearance curves are either available or can be constructed in the field. A preliminary set of curves for average conditions and activities is shown in Fig. 1, where clearances are only for the side of the vehicle (Lineberry and Adler, 1984). These curves set the safe speed limits for a vehicle operating at given clearances, under given conditions and activities. When feasible, velocity-clearance curves should be constructed through field measurement and observation. Curve construction should also consider haulway roughness, distances, and operator skill, as well as loading and dumping characteristics. It should be noted that haulage capacity determination is a total systems problem, not one just dependent on velocity and clearances. Production requirements and company capabilities also influence capacity determination.

Jan 10, 1985

By C. P. Mangelsdorf

Introduction The use of frequency of vibration measurements to determine tension has long been accepted by industries that use electrical or stranded cables of wire ropes in their operations. In contemplating how to determine the tension in chords of a roof truss, it seems almost inevitable that a similar approach should be investigated even though there are some important dissimilarities in physical behavior between a chord of a rod-type Birmingham truss and a stretched wire rope. While the dominant feature of both types of behavior is the existence of tension, the bending resistance of the vibrating truss chord cannot be ignored. And it is common to have attached to the chord, pieces of hardware (turnbuckles, extension sleeves, wedge boxes) that represent concentrations of mass not usually found in a vibrating wire rope. Analytical solutions to the problem of vibrating wires or beams can be found in the literature on vibrations (Timoshensko, 1955; Den Hartog, 1956). But in every case, at least one of the ingredients of the vibrating truss chord is missing. The presence of axial tension, or bending resistance, of concentrated masses and of end conditions peculiar to truss chords is a combination that appears not to have been dealt with before, although the techniques for dealing with it are commonly known. The purpose of this note is to report the results of a project to measure and calibrate such frequencies. The work was conducted by the University of Pittsburgh under the sponsorship of the US Bureau of Mines. Field observations Tests were conducted on 24 different truss installations. The first 18 trusses were installed in shale roofs above Kentucky No. 9 seam and Illinois No. 6 seam. The remaining six were placed against the competent sandstone over the Pocahontas No. 3 seam in West Virginia. Chord tension was determined by two electrical resistance strain gages, in series, applied diametrically opposite to one another on the rod before tensioning. Due to the combined effects of inexact gage placement, rod bending and residual torsion in the chord due to tightening, errors in tension as high as 1780 N (400 lb) were reasonably possible. Due to faulty soldering or damage, three of the first 18 trusses and one of the final six were rendered completely unreliable. In addition to strain, the first natural frequency of vibration was observed to the nearest 0.1 Hz. Dimensions recorded included the span between contact points at the bearing blocks (Fig. 1) and the locations and amount of excess rod and rod gap at the wedge box and turnbuckle, respectively.

Jan 9, 1985

By C. F. de Mendonca, T. Kater, R. P. de Souza

The authors are to be commended for finding a material for pellets binding that we were unable to uncover during the investigations that led to US Patent No. 3,748,116, “Method for producing metallic iron powder from iron ore concentrate, ” July 24, 1973, by G.G. Reed, Jr., J.M. Karpinski, and S.V. Fox. This patent concerns a method of processing “super’ ‘-concentrates prepared from magnetite or “blue dust” into molding-grade metallic iron powder for use as a bulk commodity, in contrast to current methods which produce small batches that are custom-blended with additives and/or alloye to customer specifications. The one thing we had not found at that time was an organic binder (mineral-matter-free ) that would allow induration to produce hardened pellets that would survive SL/RN Direct Reduction. Peridur appears to provide this missing link needed for large scale (200 t/a, or 220,460 stpy) single line plant capacity consistent with a low market price to ensure greatly broadened use of metallic iron powder. I hope that industry will adopt this combination so that metallic iron powder usage can fulfill its potential

Jan 9, 1985

By D. Gignac, P. A. Studemeister, H. Koza

Two epiclastic horizons in an Archean volcanic sequence host the gold occurrences on the Dunraine property near Wawa, Ontario, Canada. The Grace horizon of cherty and pelitic tuff strikes north-northwest and dips east. Native gold occurs with arsenopyrite in bedlike and podlike bodies of quartz lenses and stringers set in a pelitic matrix. The Parkhill horizon of lithic graywacke with associated flow-breccia strikes southwest and dips south. Native gold occurs with minor sulfides in similar bodies of quartz erratic within the Parkhill horizon. The auriferous bodies occupy paleotopographic channels and troughs within the two horizons. The former producers are the Parkhill mine with 1689 kg (54,300 oz) Au, Darwin mine with 473 kg (15,200 oz) Au, and Van Sickle mine with 48 kg (1536 oz) Au between 1902 and 1944. The gold occurrences are syndepositional with the host volcanic sediments laid during a pause in explosive volcanism. Fumaroles along steep gullies on the flank of a subaqueous volcanic center precipitated aprons of auriferous silica-sulfide mud. Downslope slumping resulted in exhalative debris flows; gold concentrated in flexures and depressions along stumpage channels. Renewed explosive volcanism covered the auriferous sediments with pyroclastic tuffs, arresting the slumping of in situ fumarolic deposits.

Jan 9, 1985

By K. A. Grace

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

Jan 8, 1985

By Paul D. Tomlingson

Part two of this two-part series covers the use of an integrated information system with administrative information, including error and absentee reports as well as open work files. Part one (ME, July, page 650) discussed conceptualizing and developing a maintenance information system. It explained what information is needed to manage such a system.

Jan 8, 1985

By Adam H. Zimmerman

Introduction Noranda, like similar businesses, is suffering the pain of previously unheard of currency relationships, a cost structure built in better days, and conditions of gross oversupply possible in almost any commodity. Indeed, it does seem like the worst of all possible worlds is out there before us. To understand a Canadian natural resource company, you must know how the country is organized. So far as natural resources are concerned, Canada is not Canada. Canada is 10 provinces and each own the resources situated therein. Thus, the conditions of extraction, exploitation, and operation are all set by the province, while the conditions of trade and currency are set by the Federal government. This means that what may be the rule in Newfoundland may not be the rule in Manitoba or British Columbia. The second thing is that the Canadian currency has been a satellite of the US dollar for a long time. This means that we hold the unenviable and unjustified position of being the country with the second strongest currency in the world. What this has meant to us is what it has meant to an American operator. Since 1980, a pound of copper fetches 214% more for a Chilean than it does for us and a pound of zinc 115% more for a Belgian. From an American point of view, Canada is favored because its dollar is valued at 25% to 30% less than the U.S. However, because of industrial indiscretions in years past, Canada has a locked in labor cost disadvantage that is very hard to cope with. Canada has a unique situation with its labor unions. Many of the unions are, or have been, internationals and therefore gained undue strength in early days. Canada has a third political party of socialist persuasion. It is entirely funded by dues from laor union members. Thus, we have a politicized workforce. And finally, we have a public service that has the right to strike. This had made the public service unions by far the strongest now in Canada. What this means to the mining industry is that there is somebody out there blazing the trail. The unrelenting power of these public service unions probably creates a climate more conducive to excessive wage settlements in industry than would otherwise be the case. Study, Work, and Pray So what do we do when times get tough? In simple terms, we study a lot, we work harder, and we pray a great deal. We study a lot in terms of learning hitherto unknown strengths and weaknesses of our products, processes, and operations. We work hard in the sense that we do everything possible to improve our productivity. And we pray a lot because, so far, anything else we have done has not been enough. Some years ago, Noranda recognized that its principal base and precious metal operations were diminishing. To provide for the future, we should branch out into other resource type operations. These might be countercyclical and also perhaps a little more permanent. For this reason, Noranda entered the potash, aluminum, and forest products businesses. This, of course, was a 'brilliant' strategy that was much applauded in its early days. We built an excellent potash mine, the smallest inte-

Jan 6, 1985

By R. A. Jankowsi, S. K. Ruggieri

Airborne respirable dust levels on longwalls can be reduced if operators approach the dust control problem in a logical and fundamental manner. This can be accomplished through the proper application and continued use of effective dust control techniques. The Bureau of Mines is currently assessing the effectiveness of longwall dust control techniques in use today to provide mine operators with guidelines for selecting the most appropriate control technology. This paper presents a fundamental approach to the problem of shearer dust control. Three dust control techniques to be discussed are: deep cutting/increased pick penetration for reducing the amount of respirable dust generated; drum water sprays/improved water supply system to suppress the amount of airborne respirable dust; and improved external water spray system, the "shearer-clearer," to push the dust close to the face. The techniques have been evaluated in field trials and have been shown to be both practical and effective in applications to control shearer generated dust.

Jan 6, 1985

Diesel powered machines are doing some specific operations in the cyclic order required by the technical process. The dynamics of this process in certain conditions has an essential influence on environmental health conditions in the working area. The main purpose of this paper is to show, using computer simulation, how the movement (dynamic) of diesel vehicles effects environmental health standards and also how to determine the required air quantity for ventilation.

Jan 6, 1985

By Frank W. Luerssen

Introduction "Austerity" is perhaps an overly generous description of the past three years in the American steel industry. Steel plants operated at an average of only 57% of their capability in 1982-84. The dismal losses for last year are still being totaled. But during the two years before this period, American steelmakers recorded an aggregate net loss of a staggering $6.8 billion. Steelmakers responded by closing numerous marginal facilities. And production capability was cut by 13.6 Mt (15 million st). Capital expenditures still averaged $2 billion annually. But this was inadequate to maintain the existing base of steelmaking facilities. The general economy experienced a satisfactory recovery during this period. American steel, however, continued to suffer from a lagging recovery in the capital goods sector. This was due to record penetration of its domestic market by imports and from very weak realizing prices on the volume that was available. In addition to the direct influx of offshore steel products - which itself depressed prices - the industry also became painfully aware of the growing importance of "indirect" imports. These came in the form of steel-containing producer and consumer durables. Industrial equipment and autos fabricated from foreign steel accounted for the equivalent of 6 Mt (6.5 million st) of lost market opportunity for domestic steel-makers last year. That is over and above the 23.5 Mt (26 million st) of direct steel imports. Given these factors, Inland Steel was not spared from the threeyear downpour of red ink. Despite its record of continuing modernization in steel, our single-plant location in the world's best steel-consuming market, and the high proportion of consumer durables related products, such as cold rolled and coated sheet in our mix, Inland suffered aggregate losses of $277 million during the 1982-84 period. Strategic Planning The foregoing establishes a perspective - a base from which we have restructured our view of the steel industry, and of our own role within that picture. Until possibly two years ago, this present weakness in steel demand was viewed around the world as an aberration, eventually to pass. By contrast, it is now recognized that austere times are the normal steel environment. The topic here is management of resources. This implies an emphasis on strategic planning. It is worthwhile to examine some of the more critical assumptions that were driving strategies among a number of steel companies just before the 1980s. Those projected characteristics of the future steel environment were arrived at through painstaking analysis. They were carefully and heavily quantified and were generally shared by outside observers and our peers within the steel industry. • First, the assumption was made that domestic steel demand would continue to grow at an average rate of 2% per year. • Second, it was assumed that this growth in the American market would continue to be filled predominantly by US mills. It was believed that increases in steel and steel-related demand overseas would absorb much of the ominously growing capacity of third

Jan 6, 1985

By Wilfred P. Schmoe

Introduction An integrated oil company has two options in approaching strategic planning. It has to decide whether it is in business for the long-term. I state this in all seriousness. Those who help manage public companies have the responsibility of good stewardship of other people's money. We must decide whether continued investment in our basic business will generate a reasonable rate of return. With a world surplus of petroleum production capacity, and continuing downward pressure on prices, this question should be addressed by all oil companies. And a positive answer is not necessarily a foregone conclusion in all cases. The decision should be made based on proven competence in finding and developing petroleum reserves on a cost-competitive basis with other producers, and on a frank analysis of future prospects. This should include a realistic assessment of the projected rate of return on specific investment projects. If a company did not pass these tests, its strategy could take one of four paths. Diversification First, it could diversify. But recent history suggests that oil companies are not good at managing other businesses. Second, it could seek a buyer for its business at the optimum return for its owners. Third, it could sell its assets on a piecemeal basis. And, fourth, it could adopt a longer-range plan of self-liquidation by living off current recoverable reserves. In other words, by not investing in exploration and development, it could maximize short-term profit and pass the money back to shareholders in the form of dividends. The Conoco component of DuPont has a below-average cost of finding petroleum, a good track record of efficient production, and a full plate of projects that pass the test of return-on-investment. In short, Conoco is in business for the long-term. That fact, in itself, determines at least one key element in strategy. This is to extend the life of the petroleum reserve base while at the same time maintaining maximum efficient rates of production to provide a strong cash flow. A company that is able to maintain a strong reserve base will ultimately see the value of those reserves escalate as world oil supplies tighten. Our planners expect this tightening to occur within the next decade as demand grows and production in non-OPEC areas of the world begins to decline. An exploration program tailored to meet the requirements of reserve replacement and current production should have two basic parts. The first is relatively low-risk exploration in proven oil provinces. This is augmented by

Jan 6, 1985