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By J. R. Sturgul

A dynamic input-output model for a coal power enterprise that now includes four underground coal mines, three coal washing plants, a power plant and a railway transportation system was developed. The model is applied to analyze investment alternatives for long-term development, including the expansion of existing mines, the opening of new mines, the construction of new coal washing and power plants and the upgrading of the railway system. As a result, the optimal investment strategy with capital schedules and projected sector outputs is obtained. Also, the importance of the new power plant to the strategic development of the company is demonstrated. It is concluded that, without applying a dynamic input-output model, it would be much more difficult or impossible to conduct such a systematic and compete analysis.

Jan 1, 1999

By John M. Wootten

The development of new coal markets is -t upon the ability to utilize coal in an environmentally acceptable and economically viable fashion. Foremost in the concerns about coal utilization is the impact its combustion has on air pollution. Concerns over environmental issues, such as acid rain, are currently one of the major impediments to the development of new coal markets. The Department of Energy and the Synthetic Fuels Corporation are addressing certain aspects of the development of new technologies for the utilization of coal. However, at the present time, there is a void in the new technology development process. That void is the step from proof- of-concept to commercial demonstration. Congress has established the Clean Coal Technology Fund at a level of $750 million to fill this void. The Department of Energy, in a solicitation of interest, received over 175 proposals for commercial demonstrations of clean coal technologies. A review of these solicitations indicates that $1.2 billion worth of research could be accomplished with a federal cost sharing of $425 million or 35 percent of the total. Industry has indicated, through this response, its willingness to invest its limited funds on projects it feels have the greatest potential for the clean use of coal. What must now occur is that Congress must appropriate the monies from the fund to initiate the commercialization of these clean coal techno1ogies.

Jan 1, 1986

By H. A. DeMirjian

Oil production rate and ultimate primary recovery from a heavy or viscous oil reservoir is usually limited to a very small fraction of the original oil in place. Typically, normal production rate is in the range of up to 10 barrels per day and expected ultimate cumulative production is up to 10% of in place values. Heavy oil reserves are not all alike. The physical properties of the rock, the liquid hydrocarbons, and depths of the deposits are so different that each reservoir poses a unique enhanced oil recovery problem. In some reservoirs thermal recovery by internal heat generation or external heat injection has been successfully exploited. In other reservoirs, mining the oil bearing formation for oil recovery by surface processing has been practiced. This paper will present an overview of the heavy oil recovery state of the art and discuss the critical factors leading to the decision for selection of a conventional hydrocarbon recovery or mining and extraction processes.

Jan 1, 1978

By KALLAM VK REDDY, VADAPALLI SANJANA, Veerendra Singh, Gajanan Kapure

Mining activity around the world has increased significantly to meet stepped-up demand for various metals [1]. Apart from the target minerals, mining also generates huge amounts of unwanted minerals that exit the mines as overburden. Due to the active mining activity, high-grade mineral resources are being depleted, leaving inferior-quality ores [2]. The mining of low-grade ores further increases the amount of overburden/waste per ton of metal equivalent of ore mined. Currently, overburden and other mine waste is most commonly used in the construction industry and as feedstock for making cement and concrete, but the overburden can also be used as a source of valuable minerals and metals [3]. 

By W. H. Langer

Natural aggregate is the number one non-energy mineral resource in terms of value and volume and is a necessary commodity for sustainable communities. While aggregate is a non-renewable resource, supplies are nearly inexhaustible on a global scale. Natural aggregates have characteristics that differentiate them from most other mineral commodities: a high number of potential extraction sites, a high volume to value ratio, significantly different set of potential environmental impacts, and regional importance combined with a narrow economic transportation radius. Because of these and other differences, resource management policies for aggregates should differ from ?general? mineral resource policies, even though the end goal is the same for both ? ensuring sustainable resource management. To achieve the goals of sustainable aggregate management each stakeholder ? government, industry, the public, and non-governmental organizations ? will need to accept certain responsibilities, one of the most important of which is to become informed about natural resource issues. Sustainability is about making trade offs among competing objectives, and people disagree about the appropriate balance among the goals of economic prosperity, social equity, and environmental health. One of the primary purposes of mineral indicators is to provide information to decision makers and the public so as to ensure that the public debate about policy choices is grounded in fact. We identify the unique aspects of aggregate resource management and introduce the concepts of sustainable mineral resource management. We then present mineral indicator sets for aggregate resources from Italy, the United Kingdom, and Slovenia to demonstrate that effective mineral indicators should be specific to the resource in question and the public values and objectives.

Jan 1, 2003

By G. Kris Kapoor

Each new period of public concern, whether rooted in things political, social, economical, or technological, brings with it new words or phrases which highlight that new interest. With people's awareness of our rapid depletion of readily available energy sources and the enormous increase in energy .costs came the new, and now often heard, terms "energy intensive", "energy sensitive", and "energy conservation". Since its birth in 1926, Fuller Company had been directly associated and involved with energy intensive products and processes. We are located in the heart of the Cement Industry. Many of our products and processes are geared to the needs of the portland cement manufacturer, and a look at the inferno within an operating cement or lime kiln will certainly convince anyone that here is an energy intensive process. Fuller Company, then, has always been energy sensitive. Process kilns, hard rock crushers, tube and roller mills, fluid bed thermal reactors, pneumatic compressors and conveyors, material coolers - all are Fuller Company products utilizing or transferring large amounts of energy. Consequently, much of our success in the marketplace depends on how wisely we design and plan for efficient use of power and for conservation of each unit of heat available.

Jan 1, 1975

By David E. Thompson, Daniel J. Dobbels

INTRODUCTION The planning process for projects requiring construction of tunnels in urban environments can be highly complex and involves interaction with professionals of many disciplines. Typically the initial step in the planning process is to establish basic design criteria for the tunnel or tunnel system consistent with its intended purpose. Such criteria might include acceptable tunnel geometry, minimum and maximum slope or other associated criteria. Ideally, once the basic criteria have been established, the next step in the process might include establishing technically feasible horizontal and vertical alignment and shaft siting alternatives and developing "ball park" construction and operational cost estimates for the alternatives. Comparisons can then be made regarding the relative technical and economic merits of the alternatives and the most favorable alignment(s) are selected for further study or preliminary design. Typically the last and perhaps the most important task that is conducted during the planning stage includes identifying issues and potential problems to be addressed during the design and construction stages of the project. Many issues warrant consideration during the planning phase of a tunneling project. For the purposes of this paper, these issues can be divided into two broad categories: technical and non-technical. Important technical issues include, among others, general design criteria, geotechnical and geoenvironmental issues, and constructibility issues. Important non-technical issues include, among others, right-of-way and easement related considerations, project scheduling constraints, both short and long term environmental impacts and overall cost/benefit aspects of the project. With respect to influence on the planning process, these two groups of issues often cannot be separated completely. For urban tunneling projects, however, it is most often the case that the non-technical

Jan 1, 1991

By R. C. Gilmore, S. A. Lolon, G. E. Bogin, S. A. Saki, J. F. Brune, J. W. Grubb

"Gob ventilation boreholes (GVBs) are widely used in underground coal mines for longwall gob degasification purposes. GVBs are often drilled within 10 to 30 m above the top of the coal bed into the fractured zone, completed with 20 cm (8 in.) diameter casing and 60 m of slotted pipe at the bottom. The purpose of this completion strategy is to create a pressure sink to capture the emissions before they can enter into the underground workplace. For GVBs to work effectively, they must be drilled close enough to the working areas to capture methane from the fractured zone while the setting depth must be kept above the caved zone to minimize the amount of ventilation air that is drawn into the GVBs. Well completion parameters are important for creating safe working conditions. In this paper, computational fluid dynamics (CFD) studies will be presented to analyze the effect of different practices for GVBs completion parameters for methane extraction, formation of explosive gas zones in the gob and methane concentrations at the longwall face and tailgate. Authors have identified the optimum completion parameters for GVBs, which can maximize the benefit and minimize fire and explosion risk. INTRODUCTION Coal mines may be considered gassy based on the presence of CH4. Gas from the mined coalbed or from rider seams above or below the mined coalbed can migrate into the gob and then potentially move towards the working areas. In longwall coal mines with high methane emissions, sufficient ventilation and additional methane control measures are usually required to reduce the methane concentration in working areas to below statutory levels. Several techniques or combinations of techniques are available to control the methane hazard. These may include mine face ventilation to dilute methane, coal bed degasification, nitrogen injection into the gob to render a methane atmosphere inert and the use of gob ventilation boreholes (GVBs). Longwall face ventilation and dilution alone can only handle methane emissions up to a certain amount. When methane emissions exceed the face ventilation capacity, additional control measures are required. Drilling horizontal or vertical methane drainage holes into the coal seams as well as gob ventilation boreholes from the surface into the gob area to extract methane are common practices. GVBs are usually drilled from the surface above the longwall panel ahead of mining. When the face moves outby the GVBs and the gob begins to form, methane production starts from the boreholes. It is important to control the performance of GVBs to maintain a safe working environment in the mine. The performance of GVBs depends on multiple factors, including borehole location, length and diameter of slotted casing, setting depth of casing above the coal seam being mined, wellhead vacuum pressure, and permeability of caved-fractured zones."

Jan 1, 2016

By Nathaniel Arbiter, Brij M. Moudgil

Separating oil shale from waste material or into high- and low-grade fractions can have a major economic influence on the surface retorting process. Different shale rock components vary significantly in physical and surface chemical properties, such as specific gravity, color, and water wettability. Various techniques that use the differences in one or more of these properties have been proposed to preconcentrate oil shale before retorting. This article discusses some proposed techniques, such as gravity separation, sorting, and froth flotation. Retorting oil shale is the most common method for recovering oil from the rock. This process is accomplished either underground (in situ) or above ground (ex-situ or surface retorting). Both techniques have serious limitations, such as low recoveries in the underground method and the ability to process rich shales only in the above ground retorting method. Also, environmental problems are associated with both techniques. Some of these limitations could be overcome if feed to the retorts is of consistent grade. This could be achieved by selecting appropriate sites for in situ retorting and selective mining for surface oil shale retorting. Both of these, however, would have a serious economic impact on shale oil recovery. Obviously, little control can be exercised over preparing feed material in the in situ retorting process, but beneficiation of oil shale could definitely be advantageous in surface retorting, and should have positive influence on the overall economics of recovering oil from the shales. For example, preconcentration of mined shale could result not only in reduced costs for materials handling, but also in waste disposal costs, since waste characteristics before and after the retorting process are significantly different. Upgrading the oil shale might also allow substitution of alternate technology for retorting as well as extend the process to recover oil from marginal deposits. Also, the separated material may become a potential source for recovering other values from shale deposits. Overall, the incentives for preconcentration are to reduce costs and improve thermal efficiency of the recovery process. Oil Shale Properties Important to Preconcentration Oil shale is a carbonaceous rock assaying 5-30% organic material (kerogen) and 70-95% ash-forming minerals. Kerogen is soft, nonbrit¬tle or semi-brittle material, and generally forms a matrix between irregularly distributed mineral grains. Inorganic mineral mat¬ter-quartz, feldspar, dolomite, kaolinite, dawsonite, and nahco-

Jan 9, 1982

By K. V. Raj, C. A. Berry, A. T. Weakley, A. L. Miller, P. R. Griffiths, D. A. Parks

Diesel particulate matter (DPM) has been classified as a carcinogen to humans by the International Agency for Research on Cancer. DPM exposure is therefore regulated by the U.S. Mine Safety and Health Administration (MSHA). The current monitoring process takes days or weeks for exposure levels to be known, and a real-time monitoring device is needed. It is believed that infrared spectroscopy has potential for use in a real-time, field-portable device. This paper presents a method for measuring organic carbon (OC) and elemental carbon (EC) in DPM for a broad range of OC/EC ratios. 

By S. Hardcastle

Kidd Creek mine has recently completed upgrades of its primary ventilation systems enabling it to maintain a delivery of 1200 m3/s to continue mining ore zones extending to over 3000 m below surface. Following these upgrades the mine initiated a multi-stage review of their ventilation usage. The focus of these reviews, ranged from a brainstorming session of invited experts, through an evaluation of production plans to a detailed analysis of production data to determine if the ventilation system could be run more efficiently, thereby reducing the mine?s power consumption and associated operating costs. The initial review identified 1500 kW of installed fan power that could be eliminated from the primary ventilation system. The benefits of the subsequent analyses, so far, are not as measurable. The second and third analyses, respectively using long range production plan data and historic production data to determine ventilation requirements based upon diesel equipment, did not agree. Both were shown to have limitations, the future based analysis underestimating, and the historical analysis overestimating the requirements. Regardless of the failings of each method, important outcomes were achieved from the detailed analyses, namely, the ability for a mine to meet a forward analysis prediction of airflow depends on its ability to adjust the ventilation to meet the dynamic nature of the mining process. Also, to minimize total ventilation requirements, a mine must regularly redistribute its airflow; this not only reduces the total volume requirement but also increases the variability of the delivered flows which can provide further operational savings. Since the detailed analyses, the Kidd Creek mine has implemented a more frequent ventilation review and redistribution procedure; consequently, it now operates with an average delivery of 930 m3/s, which is 23% lower than in 2005 at the start of the review process.

Jan 1, 2009

By A. D. S. Gillies

The provision of a suitable working environment in deep level mines requires the accurate prediction of the ventilation heat load. Mathematical models for predicting strata heat load have been under development since the 1930's and 1940's. Computer models for predicting this and other mine heat sources have been developed and refined over the last 20 years. Some empirical studies have occurred and there is an increased emphasis on the importance of underground studies. Any theoretically or empirically determined predictive method must of necessity make assumptions. Underground space with its irregular configurations and rough wall surfaces cannot be described by simple mathematical expressions. Some heat loads, such as machinery, may occur intermittently while others such as the influence of water evaporation are very difficult to quantify accurately. Current popular models for predicting mine heat load have been surveyed. In testing some of these it is often found that each estimates significantly different quantitative values for the expected load in a particular underground space under study. These differences are explained by the assumptions, simplifications and omissions implicit in each of these models. It would be easier to estimate conditions at any point if heat flow into mine air passageways could be described by simple equations with associated statistically-based confidence ranges. Use of probability distributions to indicate confidence ranges allows any heat level estimate to be expressed as a range of values with limits for maximum and minimum expected values. This approach allows many of the limitations of the popular predictive models to be overcome. A heat prediction method using this approach has been developed based on Monte Carlo simulation and tested on mine data from a number of operations. Heat flow levels which can be predicted by simple equations supported by probability distributions allow the engineer flexibility in adjusting a predictive model to the underground characteristics appropriate to the mine site under study. The influence of all heat sources present in the mine opening must be included. Prediction methods must be updated as mining systems and machinery change with time. Heat sources interact with one another and the system must therefore be understood in its entirety.

Jan 1, 1987

By Hans von Michaelis

The revolution in development of new technology and practices in the gold mining and metallurgy industry continues unabated despite the ups and downs in the gold price. Some of the new cutting edge technologies are listed in Table 1 overleaf. There is room to discuss just a few of these here, but many more are identified and described in RANDOL (1992). Cutting edge advancements in gold recuperation, can be sorted into three categories. The first category includes fundamental advances that offer major improvement with significant economic benefits. Second would include evolutionary developments that offer smaller, but nonetheless commercially valuable improvements. Finally there are those "advances" that are interesting but of trivial or question­able economic benefit to industry. It is essential to adopt a "systems approach" philosophy towards developing and applying new technology. Practical innovation often comes about as a result of having to solve a problem. Innovation for innovation sake is an ego trip. Environmental management has become an important part of the system and the environmental implications of new processes and practices in the mine and mill have to be carefully considered for potential benefits and/or liabilities.

Jan 1, 1993

By J. F. Brune, A. Verma

"Face ignitions in underground coal mines are a major risk for underground mining operations, as they can lead to methane or coal dust explosions. The 2010 disaster at the Upper Big Branch Mine resulted in 29 fatalities due to a methane and coal dust explosion initiated from a face ignition. Much research has been conducted to mitigate face ignition hazards, from water sprays to installing passive and active explosion barriers. Despite the increased use of water sprays in U.S. coal mines, there have been more than 50 documented face ignitions in the U.S. underground coal mines since 2010, indicating that this hazard still prevails. This paper will examine the statistics of face ignitions and gas explosion in U.S. coal mines based on MSHA data. It will study factors contributing to these face ignitions and outline best practices for their prevention based on experience and practices worldwide. INTRODUCTION Methane and coal dust explosions are one of the major causes of coal mine disasters in the U.S. and around the world. Such disasters have resulted in the large number of fatalities and loss of mine infrastructure. The recent explosion at the Soma coal mine in Turkey has caused the death of 301 miners (Mining Turkey, 2014). As documented by U.S. Mine Safety and Health Administration (MSHA, 2015a), the U.S. coal mining industry has also experienced several catastrophic mine explosions with accidents at Upper Big Branch mine, Darby mine, Sago mine and Jim Walter Resources No. 5 mine in the last decade, causing the deaths of almost 60 miners. Every explosion requires a source of ignition, the right amount of fuel and oxygen. In underground coal mines, methane acts as a fuel while ventilation air acts as a source of oxygen. The source of ignition may vary from spontaneous combustion, electrical equipment and switchgear, mechanical heat sources, face ignitions due to friction rock-on-rock or from cutter bits and lightning strikes. Under the right conditions, energy of less than 0.3 mJ is sufficient to ignite methane-air mixtures (James, 2007) that can result in a catastrophic explosion. Much research has been done to mitigate the methane explosion hazard by proper dilution, continuous monitoring of methane and elimination of ignition sources. Historical studies indicate that face ignitions are the major cause of explosion in underground coal mining operations worldwide (Belle, Carey, and Robertson, 2012). Statistics shows that most mine disasters were started from a small face ignition, which turned into a major explosion fueled by additional methane and coal dust (Belle et al., 2012). To investigate face ignition hazards, researchers must study potential ignition sources as well as potential explosive atmospheres near mechanical coal cutting operations. Statistical analysis of U.S. coal mine face ignitions reported by the U.S. Mine Safety and Health Administration (MSHA, 2015b) shows that several factors are responsible for face ignitions."

Jan 1, 2016

By Paul C. Schmall, Arthur B. Corwin, Hugh S. Lacy, Derek Maishman

For reasons of hydraulic design and constructability, water supply tunnel systems are often located relatively deep, in competent rock. Where the rock lies below a thick cover of water bearing soils, artificial ground freezing offers a low risk, cost-effective method of constructing access shafts. Several examples, in Kansas City, MO and in Brooklyn and Queens, NY, illustrate the use of freezing to provide structural support and ground water exclusion. In the case histories presented, the shafts range from 6m to 12m (20 to 40 ft) in diameter and soils vary from clays to boulder beds with depths in excess of 73m (240 ft) to competent bedrock. Where tunnels for infrastructure are designed to be driven in rock, vertical access may encounter a considerable thickness of overburden soils with groundwater. In such cases, shaft sinking problems are analogous to those confronted by mining engineers over 100 years ago. At that time, newly developed refrigeration machines were set to freeze the ground water and stabilize running sands. Although modern technology has refined our efforts, the basic features of the ground freezing to be described here are the same as those used in the last century. Vertical holes drilled on a circle surrounding the shaft site are equipped with leak-free steelpipes through which a refrigerated brine is circulated. In this manner, a frozen cylinder, seated in rock, is formed when the earth freezes between adjacent pipes. Shaft excavations take place inside a self-supporting, ground-water excluding structure. For mines, no better method of sinking production shafts through deepwater-bearing ground has yet been established. Indeed, major deposits of coal, potash, and salt would have remained inaccessible to this day were it not for the continued use of artificial ground freezing. If mine shaft freezing became relatively commonplace, early applications to civil engineering were few. Mussche and Waddington (1946) mention only five projects between 1892 and 1935; three of these relate to subway or vehicular tunnels in Paris, Antwerp, and (the most extensive) at five locations of the Moscow Metropolitan Railway development. In the United States, the method was used to spectacular effect in 1936, freezing about 3,000 cubic yards of silt to stop a slide

Jan 1, 1999

By Larry Whittle

Gold milling activities generate waste streams containing dissolved metals and cyanide, among other contaminants, that require some form of treatment prior to discharging to the environment. To date, this treatment has involved the destruction of cyanide through natural degradation, chemical oxidation, or a combination of both followed by the precipitation of metal hydroxides. Although these processes have been proven to be capable of achieving. regulatory levels for metals and cyanide, they often generate significant levels of cyanate and, at times, ammonia, that may be toxic to rainbow trout and thus undesirable for regulatory compliance. Tallon Metal Technologies Inc. (Tallon) has developed Vitrokele™, a chelating resin that has the ability to capture metals (including gold), both total and weak acid dissociable cyanide, as well as thiocyanate from both slurries and solutions. The loaded resin is eluted and returned to the recovery circuit while metals and cyanide are recovered from the eluent stream. This process was demonstrated at pilot scale at B.P. Resources' Hope Brook Gold Mine in Newfoundland, and more recently at Canamax's Bell Creek Mine near Timmins, Ontario. The results from these pilot programs showed metal and cyanide recoveries of 99% or more with the concentration of cyanide and metals in the effluent reduced to levels with minimal or no toxicity to rainbow trout. Furthermore, neither cyanate nor ammonia were generated from the process. The loaded resin was effectively stripped and re-introduced to the recovery circuit; cyanide was captured in the eluent stream and made available for recycling to the mill leaching circuit; and metals were captured for re-use, sale or disposal. This paper summarizes the results obtained from the pilot tests at the Bell Creek and Hope Brook Gold mine sites.

Jan 1, 1992

In west-central England, 183 m (600 ft) below the Cheshire Plain, lie the evaporate remains of an ancient sea. Stratified into nine beds of salt separated by marl bands, the deposit stretches roughly 21 x 12 km (13 x 7.5 miles) and contains reserves of rock salt estimated as high as 400 Gt (440 billion st). The Winsford Salt Works, one of England's largest underground mines, extracts the Cheshire salt and sells it for use as animal feed, for application in de-icing programs, and as a key ingredient in sodium fertilizer production and a variety of other industrial processes. Because road de-icing is an important market, demand for Winsford's salt varies with the severity of British winters. Design capacity is 2.25 Mt/a (2.5 million/year). However, production peaked at 2 Mt (2.2 million st) in 1987. Over the past five years, annual production has averaged 1.6 Mt (1.7 million st). Run-of-mine salt averages 92.5% NaCl, mixed with about 5% marl. The marl was formed by deposition of a reddish dust blown into the Cheshire basin from deserts in what is now central Europe. Association with the marl adds color to the salt, producing tea-colored crystals that resemble unrefined sugar. Adaptation of coal mining systems Rock salt mining in the Winsford district began at least as early as 1682. Mining at the current site dates from 1844 but was shut down from 1892 to 1928. In the early 1900s, a series of catastrophic collapses and floods plagued and ultimately shut down then-active Cheshire brine-salt producers. Subsequently, Winsford reopened and began adapting mechanized underground coal mining systems to rock salt extraction.

Jan 1, 1992

By Leslie Thompson, Randy Hiebert, Marietta Canty

A paper is presented in which an innovative biological process is described for the treatment of cyanide-, metals-, and nitrate-contaminated mine process water. The technology is capable of detoxifying cyanide and nitrate and immobilizing metals in wastewater from agitation cyanide leaching as well as heap leaching. A pilot-scale demonstration is described in which a pilot plant was constructed to detoxify cyanide and immobilize several metals from a mine process wastestream at a mine in Nevada. The demonstration was performed jointly under the Mine Waste Technology Program (MWTP), which is funded by the U.S. Environmental Protection Agency (EPA) and is jointly administered by the U.S. Department of Energy's (DOE) Western Environmental Technology Office (WETO) and the Superfund Innovative Technology Evaluation (SITE) Demonstration Program under Interagency Agreement Number DW89938513-01-0. MSE Technology Applications, Inc. (MSE) located in Butte, Montana, was the contractor responsible for conducting the project, and Pintail Systems Inc. of Aurora, Colorado, was the technology provider. The pilot-scale unit was field tested at the Echo Bay McCoy/Cove Mine southwest of Battle Mountain, Nevada. The biotreatment process was con­sidered to be very successful in detoxifying cyanide from the mine process water. The process was also determined to be very effective in removing metals. The pH was consistently neutral­ized and nitrates were successfully removed in the mine process water. As a result of conducting these pilot-scale tests, the biotreatment process was concluded to offer an innovative, cost­effective alternative for the treatment of mining wastewaters.

Jan 1, 1998

By Michael Chender

The rapid and continuing expansion of computer and communication capability is giving birth to profound changes in the business environment. Some commentators hold that the basis of the world economy has already shifted from industry to information. Regardless of the overall implications of these changes, it is now clear that every company potentially has both access to and a need for much more information for decision making than was the case a few years ago. The importance of information to the mining industry has been underlined by the rash of unexpected economic and political developments and by the accompanying market volatility that have marked the past decade. It should be abundantly clear to even the smallest mine operator that the price for his output can be instantly affected by unexpected developments halfway across the world. Nevertheless, many mining companies still are much less sophisticated about information than they might be. For many, the historical feeling that information is an unnecessary luxury for a production-oriented business still seems to linger. On the other hand, the overwhelming volume of source material, uncertainty as to its accuracy, and the problems of finding relevant material when needed, presents stumbling blocks to viable systems of information management. Introduction When a company needs certain information, it has two basic alternatives. It can either research and develop the information in-house or pay for someone else to do it. Few mining companies have the in-house capability to assemble information needed for careful planning. On the other hand, companies often engage consultants to find information that is in fact easily accessible. All too often companies give up on procuring needed information because of the frustration of not being able to find it, and of not wanting to pay seemingly exorbitant sums for someone else to produce it. The result is poor planning. This article addresses two aspects of the information problem-finding the right sources and then accessing the particular information desired, especially as it pertains to nonferrous metal exploration and development issues. In the first section, major English-language sources that report on exploration and development (excluding primary sources of geological information, such as technical journals) are discussed.* In the second section, some available techniques for efficiently accessing this information are presented, focusing on the new MINESEARCH database system. Part One: The Information Following the News The most obvious way to follow exploration and mining developments from a distance is through regular mining media. Many active mining districts have local newspapers, usually published in the district's major towns, that give extensive coverage to miningrelated activities. For instance, to follow activities in Idaho's Coeur d'Alene silver district, one might subscribe to the Kellogg Wardner News and/or the Wallace Miner. Similarly, one might get the Sacramento Bee for news of current mining developments in north-central California. The American Metal Market, published in New York, is the daily newspaper that covers the metals industry as a whole, both in the US and abroad. Its coverage is weighted towards the refining, manufacturing, and consumption end of the business, but it frequently carries stories on mining activity, company dealings, and market outlooks. For news of major mining companies, the daily Wall Street Journal provides occasional coverage of North American companies, while the Financial Times of London serves as probably the best single source for worldwide company information. International Coverage There are three metals industry weeklies that have broad international coverage and readership. These are Metal Week, Metal Bulletin, and Mining Journal. Each has its strengths. Metals Week, a McGraw-Hill newsletter, focuses primarily on news of the metals markets, concentrating on those developments that are seen to most directly affect the price of nonferrous metals. Metals Week is strongest on North American news. Metal Bulletin, published in London, is particularly strong on

Jan 4, 1983

By Franklin J. Stermole

The current financial state of the mineral industry, in general, is bad. Economic prospects for improvements in the near future are uncertain. What will improve mineral investment economics so the mining industry can return to a more normal (in terms of past experience) production level? Basically, mineral commodity prices must rise. They must rise to economically justify reopening closed mines and for management to seriously consider expansion or development of existing and new mines. With the worldwide economy depressed for more than a year now (longer for most segments of the mineral industry), supply/demand relationships for mineral commodities are such that prices are depressed-except for precious metals. In investment analysis of the economic potential of existing or new investments in any industry, product price generally is one of the key parameters having great impact on the economic viability of projects. Petroleum and synfuels industry development contracted last year for the same product price reasons that have brought mineral industry development to a standstill. Much of the new mine development activity now underway or in the serious planning stages around the world involves precious metals ore body development simply because precious metal prices are high enough now or are projected to be high enough in future production years to give overall satisfactory project economics. It will take significant improvement in nonprecious metal mineral commodity prices in 1983 to develop significant new mine investment interest except in very high grade ore body special situations. Mineral Investment Decision Making Before progressing further with the discussion of mineral investment considerations for the coming year, it should be emphasized that mineral investment decision making-like all industry or individual investment decision making does not relate just to economic considerations. Investment decision making should and generally does involve three analyses: • Economic analysis • Financial analysis • Intangible analysis Economic analysis evaluates the relative economic merits of investment situations from a profitability viewpoint based on discounted cash flow analysis of projected investment revenues and costs. Financial analysis, on the other hand, refers to where and how the funds for proposed investments will be obtained. Regardless of the project's economic potential, if you can't finance it, the project will not be done. Intangible analysis considers factors affecting investments but which cannot be quantified easily in economic terms. Typical intangible factors are legal considerations, public opinion, goodwill, environmental and ecological impacts, and regulatory or political considerations, to name a few. New mine development investment decision making in the US has been impacted heavily by intangible considerations in the past decade and will probably continue to be impacted by them in 1983. There is a common tendency in literature and management practice to interchange the terms economic analysis and financial analysis. This often leads to confusion about the rationale for investment decisions. For example, in the past year a majority of companies in all types of industries cut back budgets for new projects. Often this was done not because new project economics were unsatisfactory, but because cash flow from existing operations was reduced compared to previous years due to the recession, and debt service requirements were high from existing loans so new borrowing was undesirable. For financial reasons, in other words, many projects were shelved last year. That included some precious metal mining projects and many petroleum projects. Many other projects were shelved for economic reasons (sometimes combined with financial reasons in the case of marginal economic projects). New mine development for copper, lead, zinc, molybdenum, iron ore, and synthetic fuels are a few examples. Economic Uncertainty and Financial Considerations Mineral project analysis has always involved a lot of uncertainty with respect to determining ore grades, tonnage of producible reserves, operating and capital cost projects, and mineral commodity prices estimates. The wide swings in mineral commodity prices in recent years and the almost impossible task of projecting future prices with any degree of confidence or accuracy concerns mineral project investment decision makers. In developing a new copper or silver mine, it is not today's price of copper or silver that is relevant to economic analysis of the mine, but what the price will be during the producing years. There is no way to avoid projecting the escalation (or de-escalation) effects on revenues and costs. To analyze a project in terms of today's dollar revenues and costs implicitly assumes that escalation will not change today's project costs and revenues; or that, if they do change, the project economics will be unaffected by the changes. This often is not the best or even a realistic assumption. The inherent uncertainty associated with historical mineral price swings is exacerbated in 1983 by the uncertainty of when

Jan 2, 1983