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By A Proudman, J Isles, R Lawolo, G Forster

PT Nusa Halmahera Minerals (PT NHM) is an Indonesian joint venture company owned by Newcrest Mining Limited (75 per cent) and PT Aneka Tambang (Persero) (25 per cent). PT NHM operates two underground gold mines, Kencana and Toguraci at the Gosowong mine site in North Halmahera District, North Maluku Province, Indonesia.Due to several major stope overbreak events at Toguraci, the mining method and sequence was reviewed. The method was changed from a bottom up Avoca stoping approach using waste rock as fill material and leaving sill pillars, to a top down open stope method using paste fill without sill pillars.The revised mine plan originally had stoping progressing from the current level to the base of reserves followed by extraction of the sill pillars in the upper levels at the end of mine life. Geotechnical modelling was conducted on the revised mine plan and it was recommended that the sill pillars be taken early due to the risk of them overstressing and being difficult to recover if left until the end of mine life. The backfill material above the sill pillars is unconsolidated run-of-mine development waste rock or unconsolidated rock fill (URF).Due to earlier attempts to extract sill pillars under URF not being successful in the upper areas of the mine, it was stipulated that the URF above the five remaining pillars must be consolidated prior to stoping. Cost benefit analysis showed this to be justifiable due to the high-grade nature of the ore locked up in the pillars.Grout was initially planned to be injected in one pass through self-drilling anchors (SDA) in a 2.5 m pattern. Initial attempts to do this failed due to the SDA aperture and grout consistency. A modified method was employed using poly pipe installed into open holes that were drilled through the sill pillar and into the URF from below. Repeated application at each location ensured full grout consolidation. Drill holes were used to confirm grout thickness as well as add more grout. Design thickness was based on stress analysis.Despite different URF types being present due to varying quantities of fines, the process was similar for each area. The presence of paste in the URF of one target affected the quantity of grout it received.With a design thickness of 4–5 m of consolidation in the URF, depending on stope width and dip, each consolidated pillar (to date) maintained integrity during the stope operation. Some fall of material was anticipated; however, quality assurance / quality control (QA/QC) during grouting, staged stope extraction and careful blast design minimised fall of material.CITATION:Proudman, A, Isles, J, Lawolo, R and Forster, G, 2017. Rock fill consolidation for the extraction of sill pillar stopes at Toguraci gold mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 199–210 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By R Blair

The Domain and Burnley Tunnels, which are major features of the Melbourne City Link Project, are MelbourneÆs first road tunnels. They are 1.6 km and 3.5 km in length respectively and are being constructed through a variety of ground conditions. Deeper sections of the tunnels have been driven through the Silurian mudstone which underlies Melbourne. Other shallower sections of the tunnels pass through a variety of ground conditions including silts, sands, clay and rock and have been constructed using both top-down and bottom-up cut and cover construction techniques. The Yarra River Crossing is a 140 m length of the Domain Tunnel which crosses under the Yarra River on a relatively shallow alignment. The crossing of the river using cut and cover techniques was identified in the early stages of design development as being one of the most challenging stages of the works on the Southern Link. The prevalence of varying geological conditions combined with the need for maintained traffic and stream flow conditions provided a demanding and often conflicting set of criteria for which there appeared to be no one clear solution. A team of designers, constructors, estimators and specialist contractors were involved in a concept evaluation and risk analysis study spanning a period of approximately 12 months. During this study, four concepts were considered as likely contenders. This paper provides a brief outline of the four concepts addressing their relative merits, disadvantages and risks followed by a detailed description of the adopted solution, namely top-down construction using secant pile walling (east bank) and bottom-up in situ construction (west bank).

Jan 1, 1999

Drilling in the south of the Rapahoe Sector at Greymouth Coalfield has demonstrated the existence of thick coal seams in the upper Rewanui Member. Seam correlation is handicapped by complex lithostratigraphy and laterally variable geophysical log profiles. An integrated investigation of coal measure stratigraphy, coal petrology, and proximate analyses, suggests a feasible model whereby most of the major seam intersections belong to a single horizon. Coal properties vary laterally in response to original swamp conditions, which are believed to have ranged from well-drained to ponded. A new model of peat accumulation is proposed for the northern Rapahoe Sector, whereby Upper Rewanui peat accumulation occurred on a flood plain between the levees of a major south southwest-flowing fluvial system in the east and the toe of a western alluvial fan.

Jan 1, 1985

By G Boyd

The Nokomai Gold Mining Project commenced production in January 1992. The Project continues a history of mining in theNokomai Valley which extended from 1863 to 1942. L & M Mining Limited have held interests in the valley since 1980. In 1990 the Nokomai Joint Venture was formed with the Hore family, the owners of Nokomai Station, to mine a large alluvial gold resource in the valley. The mine is located adjacent to the Mataura Brown Trout fishery and required extensive environmental studies prior to granting of permits. The mine is budgeted to work for 20 months, processing 460 000 m3 of wash material. During this period, contract miners, Downer Mining Limited, will move in excess of seven million cubic metres of overburden from the deposit.

Jan 1, 1992

By J E. Everett, K Jupp, T J. Howard

Precrusher stockpiles are designed principally as buffers to decouple the mining and processing operations. They are usually paddock dumped or dumped over a face to form fingers by dumping haul truckloads and reclaimed by front-end loader in an ad hoc manner. In addition, they are often not built and reclaimed to completion but continually added to and extracted from. While this design suits the mining process and is operationally simple, there can be little confidence in the grade of the ore that is fed to the crusher. This makes short-term grade control difficult and reconciliation back to the mine face imprecise. Well-designed and operated precrusher stockpiles can overcome these deficiencies.The different types of grade variability in mining are reviewed in this paper. The role of precrusher stockpiles in reducing short-term variability is discussed and their ineffectiveness in addressing long-term variability is highlighted. Their role in removing the serial correlation of the extracted ore is explained.Precrusher stockpiles carry out the four, at times competing, objectives of storing, buffering, blending and grade separation. Their actual design and operation result from a compromise between these four competing roles. These roles are explained in detail along with the advantages and disadvantages of the different types of precrusher stockpiles. The recommended blended-in blended-out stockpile (BIBO) design is discussed in detail. Matched pairs of BIBO stockpiles of limited tonnage built and reclaimed to completion retain the best knowledge of grade and facilitate the reconciliation process.Simulation studies have been carried out on BIBO stockpiles to understand the blending opportunities of the different options for building and reclaiming, and to identify the methods that achieve maximum blending. It was found that laying down rows in one direction and reclaiming across these rows gives the best blending. Matching the width of the reclaim face with the daily crushing requirements is also important. The length of the rows, and building in either one or two layers has little effect on the extent of blending.Appropriate design can provide a reasonable compromise between the four objectives.CITATION:Jupp, K, Howard, T J and Everett, J E, 2013. The role of precrusher stockpiling for grade control in mining, in Proceedings Iron Ore 2013 , pp 203-214 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

Open pit mining has considerable damaging effects on the environment of the mining region. These harmful influences have to be controlled during mining operation until mine closure. Different sections of mined land, such as; pit(s), waste dump(s), tailing pond(s), roads, areas for onsite facilities and free land zones which are not mined, have to be reclaimed through treatment of environmental pollution and implementation of a permanent post mining land use (PMLU) after mine closure. Implementation of a permanent optimal post mining land use (OPMLU) is one the most decisive criterion which effects on reclamation procedure, mine closure and their costs. Therefore to define ultimate pit limit (UPL), mine closure and reclamation costs should be entered in the calculation iterations same as the other variable costs of the projects. Estimation of closure and reclamation costs of a mining project is carried out based on the attained OPMLU and the specifications of the mine site. In this paper, a model is developed to provide OPMLU for pit area through fuzzy multi-attribute decision making (FMADM) technique. The model was implemented on a hypothetical copper mine in northwest of Iran as a case study. Lumber production was selected as OPMLU for the pit area. It is finally concluded that through the developed model, OPMLU for different sections of mined land in an open pit mine project is defined. Also closure and reclamation costs are estimated based on the defined OPMLU to achieve a more accurate UPL.

Dec 6, 2010

By D Prior

The Australian mining industry is a significant contributor to the nation’s greenhouse gas (GHG) emissions, and like any industry, it must make efforts to reduce these. Medium- and long-term strategies will include the replacement of diesel engines with alternative energy sources, but what can be done in the short-term to reduce diesel consumption and hence CO2 emissions? Haul trucks are identified as the major contributors of CO2 emissions in the mining fleet and this paper focuses on firstly identifying what drives haul truck emissions and secondly, discussing what is the role of the Fleet Management System (FMS) in reducing these. A key enabler of this is having a robust fuel consumption model within the FMS, and I describe how this may be done. Besides novel approaches to incorporating fuel consumption (CO2) management into truck assignment algorithms, this paper also describes how the FMS can be used to implement and manage procedures and policies to reduce haul truck emissions.

Jun 22, 2022

By R P. Langford, T A. Moore

Indonesia over the last 15 years has experienced a surge in coal exploration, which has led to the development of a major export industry. This coal exploration has improved the understanding of the geology of the Indonesian coal deposits. The main economic coal deposits are of Eocene and Miocene to Pliocene age, which mainly occur in Kalimantan and Sumatra and were formed from peat deposits in an equatorial paleoclimate similar to that prevailing today. Some of these peats were domed peats, which grew above the normal water tables, under a climate of year-round rainfall; these peats grew above the level at which waterborne mineral matter can enter the system, resulting in low ash and sulphur, and locally very thick coal. It is believed that such peats have formed the unusually thick, low ash, and low sulphur Miocene coals of Indonesia. Coal deposits of Eocene age are typically characterised by thinner seams, with relatively higher contents of ash and sulphur. The Miocene coals and Eocene coals both appear to have formed in lacustrine, coastal plain or deltaic depositional environments, similar to the modern peat-forming environments of eastern Sumatra and parts of Kalimantan. The Eocene coals formed mainly in extensional tectonic settings. Miocene - Pliocene coal deposits formed in a range of tectonic settings; the most significant, for large economic coal deposits, are the foreland basin setting of the large Neogene coal deposits of South Sumatra.

Jan 1, 1999

By A M. Sherwood

The Otago and Southland lignite deposits represent by far the largest known fossil energy resources in New Zealand. Despite their size they have remained virtually untouched since exploration in the 1970s and 1980s defined their extent. In total there is an estimated 10.9 billion tonnes of lignite in 13 defined fields in Otago and Southland. Much of the exploration work only targeted seams at shallow depth and it is highly probable that there are further resources at depth in the fields that have been explored to date.   L&M Lignite Limited (L&M) holds exploration permits over a number of lignite deposits and is currently engaged in pre-feasibility studies to investigate the potential of the lignites for gasification. L&M is focussing its studies on the Hawkdun and Ashers-Waituna deposits. Coal quality in these deposits, particularly Ashers-Waituna, is highly suitable for gasification. In total the two deposits contain 1647 Mt of potentially recoverable lignite. L&M has engaged a variety of consultants to progress this project. The Hawkdun and Ashers-Waituna deposit databases have been re-evaluated and the resources remodelled. Further drilling has been carried out and the coal quality database has been expanded. The baseline project is to develop a mine to feed a plant that will produce liquids, specifically low-sulphur diesel and naptha, using the Fischer-Tropsch process. The project anticipates a staged development of 10 000 barrel per day units, each requiring mining at the rate of 12 700 tonnes of lignite per day. The production of other products including ammonia-urea, methanol, hydrogen and electric power is also under study.

Jan 1, 2005

Under the Town and Country Planning Act 1977 the Ministry of Works and Development has a responsibility for providing information to local and regional planning authorities on public works and matters of national development and importance, for the exercise of their responsibilities under this Act. One such matter which has recently become a source of concern is the development of South Island lignite. In 1979 the Ministry of' Energy produced a position statement outlining a programme of' research leading to the possible extraction of lignite in Southland or Central Otago for conversion into about 50 per cent of New Zealand's liquid fuel requirements by 1995. Understandably this possibility has caused considerable concern at the local level, expressed particularly by bodies such as Federated Farmers and the local authorities. In the absence of any factual knowledge short of mere conjecture been able to recommend to local authorities is that they limit their planning period to ten years. After this time more information regarding the size, nature, location and certainty of the proposal will permit a more accurate assessment of the implications of the York. While on holiday earlier this year I took the opportunity to visit opencast mining areas in Germany and England to gain an appreciation of the scale of impacts involved and discuss with those concerned the procedures used in planning for such operations. What follows is a brief description of these operations, a comparison with the likely development in this country and the extraction of what may be some relevant principles of' operation for the planning of an environmentally acceptable project. Please note that the views expressed in this paper are mine alone and are not necessarily those of the Ministry of Works and Development.

Jan 1, 1981

By R G. Barker, A B. Christie

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. More than 11 Moz of Au and 50 Moz of Ag have been produced from epithermal deposits in New Zealand, almost entirely from 50 deposits in the Hauraki goldfield. Since the 1980s, new deposits have been discovered at Waihi (Favona, Trio, Correnso) and nearby at Golden Cross. Feasibility studies into reopening the Talisman mine at Karangahake are continuing, and advanced projects with preliminary inferred resource estimates are reported at Wharekirauponga, Neavesville and Muirs. In the Taupo Volcanic Zone, 11 prospects have been drilled, resulting in the definition of large but low-grade Au-Ag resources at Ohakuri. In Northland, several Au, Ag and/or Hg prospects are known, and small quantities of Ag and Hg have been mined. Six prospects have had some drilling, with the most advanced exploration at Puhipuhi. The application of Taupo Volcanic Zone geothermal systems research to the modelling of former hydrothermal mineralising processes in some epithermal prospects has enabled better targeting of exploration.CITATION:Christie, A B and Barker, R G, 2015. Exploration for epithermal gold deposits in New Zealand, in Proceedings PACRIM 2015 Congress, pp 533–540 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By D Syme

In the middle of 2000, BHP Billiton implemented a Six Sigma Plus business improvement program known as Operating Excellence. It was developed based on a business bottom line initiative to deliver 35 - 40c/share and was one of the BHP Billiton strategies to deliver $2 earnings per share and a longer term $40 share price (BHP share price). Cannington is a silver, lead and zinc mine owned and operated by BHP Billiton. Through implementing Six Sigma Plus Cannington wanted to:have in-house capabilities to change and improve; tailor for the needs of each business unit and department; have æSharing of its KnowledgeÆ as a tool for improvement and have a competitive edge across Cannington û to be better than our competitors; learn from and leverage off the successes of improved safety and prior business improvement efforts; and ensure networking and sharing of information have common measurement systems across all assets. As with most business improvement programs û Six Sigma Plus was met with some degree of skepticism, especially given the amount of resources involved. After 18 months, much of this skepticism has been replaced with enthusiasm as peopleÆs understanding and acceptance of its fundamental concepts are being realised. The idea behind Six Sigma Plus is that it combines sound technical solutions with high acceptance by those who need to work with or implement the change. The future vision for Six Sigma Plus is that it become part of what we do at Cannington û just like safety and environment û so that Six Sigma tools and methodologies are used in our every day work.

Jan 1, 2002

The history of mining is rightly proud of its achievements in improving productivity and cost improvements over the years. No matter what measure is used, tonnes per manhour, cost per tonne, etc vast improvements have been made over the last hundred years. In fact over the last ten years in Australian coal mines raw coal output per employee has increased by 60 per cent. When one examines why these improvements have taken place the principal reasons have been technological advancement in mining equipment, excavator and dump truck capacity increases, longwall and continuous miners continually improving in reliability and size. Of course all these improvements are correlated to an increase in capital cost. Even with the above-mentioned advances the pressure for increased performance is as strong as ever. The international mining and mineral-processing sector is currently operating in a recessive market with some traditional commodities, eg gold trading at 20 year lows. During recessive times senior management will demand greater returns on capital employed: the obvious choices being reducing costs or increasing throughput. In addition, head office environments will often place a capital freeze on operational management so the opportunity to take advantage of technological change is not available. The challenge is, therefore, to increase throughput and cut costs without the need for capital. The answer is to optimise the existing labour and plant. If done systematically a result in productivity improvement, in our experience, as high as 45 per cent can be achieved with the average across South East Asia and Australasia being 21 - 23 per cent. The intention of this paper is to present a systematic approach to labour and machine utilisation thereby gaining the greatest possible return on the existing capital base.

Jan 1, 1999

People in economically developed societies demonstrate inherent human care for Earth and want to stop pollution. Yet efforts to clean Earth seem bogged in confusion from wildly contradictory and alarmist predictions of æclimate crisisÆ. Supposed experts openly disagree yet weÆre told thereÆs universal agreement humans are causing æthe end of life as we know itÆ. The turmoil combines with peopleÆs feelings of fear, guilt, anger, hopelessness and even resignation and apathy to trigger æclimate alarmÆ. The paper enables people to rediscover clarity, hope and support for Earth by understanding how climate alarm and confusion were created and how they actually increase pollution. Many people seem to think global warming is as serious as pollution and worry that questioning alarm will enable pollution. Yet theyÆre different. We need be even more concerned about climate alarm because history shows repeatedly that when buried by ignorance and panic real problems grow overwhelming. Environmental credibility is endangered by confused politicians and sensationalist media. When weÆre willing to re-evaluate what weÆve been told we replace fear and confusion with facts and freedom to identify opportunities. Combining this with practical understanding of human behaviour and leadership enables opportunities to be identified and action taken. The paper shows how confident, informed leadership leads and supports higher productivity and effective care for the natural environment.

Jan 1, 2009

Effect of Grinding Media on the Flotation of Sulfide Minerals

Sep 13, 2010

The Main Seam occurs in two 'pods', termed North and South, separated by an east-west oriented 'want' zone (most probably a palaeo-channel). The seam on either side of the 'want' area reaches thicknesses of over 30 metres but the North Main Seam adjacent to the 'want' zone has been split into multiple seams of 10 to 15 m thickness. Rock types in the inter-burden of this area are characterised by inter-bedded sandstones and carbonaceous mudstones varying in thickness from 0.5 to 5 m. In the South Main Seam, an area of un-split coal exists and is characterised by few inorganic partings. Overburden in this area varies geographically from relatively thick mudstones in the south and east part of the coal deposit to inter-bedded sandstones and carbonaceous mudstones adjacent to the 'want' area. The sandstone/mudstone overburden probably represents a splay or splay-channel complex emanating from the larger 'want' area palaeo-channel. Modelling lithological variability is of use because it is one of the factors used in predicting cavability and roof support system design. The coal in both the north and south deposits were found to exhibit highly predictable quality and breakage parameters in relation to the coal geometry. Although ash yield and sulphur are mostly low and not variable, volatile matter and thus fixed carbon, varied in relation to seam thickness. In general, volatile matter (dat) decreased and moisture increased with decreasing seam thickness whereas moisture increased with decreasing seam thickness. In addition to these parameters it was found that the energy needed to crush the coal was lowest at the top and bottom of the seam and, on a whole seam basis, decreased with seam thickness. All of these parameters were found to vary in relation to the vitrain band content of the coal which itself was controlled by seam geometry. These parameters can therefore be modelled and inputted into mining plans and quality control operations.

Jan 1, 1996

By B Chi, A Mahanta, R A. M Maddever, O Dominguez

BHP Billiton, in collaboration with Sodern and CSIRO, has developed a downhole logging tool for measuring geochemistry in situ. The FastGradeTM 100 (alternatively, FG100), exploits pulsed fast and thermal neutron analysis (PFTNA) to analyse the rock. This method is based on the detection and measurement of characteristic gamma rays emitted from isotopes in the material that become briefly radioactive when they are bombarded with neutrons. The tool outputs raw spectra arising from three types of neutron interaction, namely, inelastic scattering, neutron capture and neutron activation, which occur in successive time-windows (Smith et al, 2015). The spectra contain peaks at specific energies that are characteristic of the different elements interacting with the neutrons, the gamma count of which is related to elemental concentration. BHP Billiton uses in-house data processing software to convert the measured spectra to elemental concentrations.Much work has been done to understand the tool response under a wide variety of environmental and operating conditions, including logging speed, borehole rugosity, the presence of cavities, water etc. Effort has also been directed at understanding and quantifying the current sources of error in our conventional assays due to sample collection, preparation, and laboratory instrumentation in order to use this information as a baseline to compare against the FastGradeTM 100 results.To date, the FastGradeTM 100 primary use has been as a verification tool (JORC, 2012). However, beyond this, it has considerable potential to improve productivity in both exploration and production environments due to its ability to provide geologists with assay results soon after a hole is drilled.This paper presents initial test work and tool performance, including accuracy and precision under various conditions. Results are illustrated by comparing tool measurements to assays from laboratory samples collected from both reverse circulation and diamond-drilled holes.CITATION:Chi, B, Maddever, R A M, Mahanta, A and Dominguez, O, 2017. Near real-time assay with downhole assay tool (FastGrade™ 100), in Proceedings Eighth World Conference on Sampling and Blending , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By A Hoyle, P Walker, D Bennett

The Phu Kham copper-gold operation located in Laos People’s Democratic Republic (PDR) is owned and operated by Phu Bia Mining Limited. PanAust Limited, based in Brisbane Australia, holds a 90 per cent interest in Phu Bia Mining Limited, with the remaining 10 per cent held by the Government of Laos PDR.The 12Mt/y copper-gold concentrator at Phu Kham commenced production in April 2008. Flotation copper and gold recovery from commissioning was consistently poor, due to the high levels of pyrite and problematic secondary and oxide copper species and non-sulfide gangue.The low recoveries of copper and gold from Phu Kham were recognised during the feasibility study design phase. A bulk sulfide flotation regime in roughing produced high recoveries, however a large capacity cleaning circuit was required and there was risk of not meeting saleable concentrate grade specifications. The installed design offered a capital efficient compromise to ensure that a concentrate grade of 24% copper could be achieved at acceptable recoveries.Incremental improvements in copper recovery were achieved by 2011 through conversion of conditioning cells to flotation cells in both roughing and first cleaning and increased cleaner capacity through the installation of a Jameson cell. In 2012 the Phu Kham Upgrade Project was commissioned to increase mill throughput, along with additional rougher and cleaner capacity to increase residence times at the nominal 16 Mt/y throughput. The marginal reduction in primary grind size due to the additional ball milling power also provided a small recovery improvement.This paper presents the development, design, implementation, and performance of the Increased Recovery Project commissioned in April 2013 which targeted the major causes of copper loss from the circuit. Based on fundamental and detailed test work and mineralogical analysis of concentrator streams, an optimised design was developed which has increased copper and gold recoveries by over 5% and 10% respectively. The Increased Recovery Project has positioned the concentrator to process high pyrite ores that were previously considered untreatable, and opened further opportunities for maximising flotation recovery by de-bottlenecking plant regrind and cleaning capacity.CITATION:Hoyle, A, Bennett, D and Walker, P, 2015. The increased recovery project at the Phu Kham copper-gold operation, Laos PDR, in Proceedings MetPlant 2015, pp 246–265 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By Nguyen T. T, Williams A. M, Siauw T. H

During the last 20 years the CSIRO Division of Manufacturing Technology, through its research and development program, has made a substantial contribution towards understanding the pressure die casting process. Much of this work focused on the hot chamber die casting of zinc, where the importance of achieving optimum flow of metal into the die cavity, combined with the correct thermal balance of the tool, is critical to the production of high quality castings. Having developed a fuller understanding of the heat and fluid flow occurring in the pressure die casting process, CSIRO sought to make this information available to the industry in a form where it could be readily used by die casting engineers. This led to the development of DMT-CASTFLOW and DMT-CASTHERM, two unique, PC-based, die design software packages. DMT-CASTFLOW provides facilities for designing running and gating systems while DMT-CASTHERM enables the die designer to optimise the cooling and/or heating requirements of the die. These two packages are now being sold internationally. This paper will describe some of the major features and benefits that can be derived by using DMT-CASTFLOW and DMT-CASTHERM panicularly in the design of zinc pressure die casting dies.

Jan 1, 1993

Most publicity about the copper industry nowa- days is focused on the adequacy of ore reserves and on excessive mining capacity. These concerns, stemming from public awareness of actual and poten- tial shortages and oversupplies, relate to production rather than consumption. Perhaps the reason for this one-sided view is that copper is thought of as a commodity which is conspicuously traded in world markets, rather than as one of many industrial materials that serve today's rapidly changing tech- nology. Copper differs from other widely traded com- modities in that its real cost of production has pro- gressively increased since World War II. The reasons for the increase are identifiable by analyzing operations in one of the world's large producing centres, the copper province of Arizona. Another respect in which copper differs from some other com- modities is that increases in demand occur less auto- matically in the case of copper than they tend to in commodities whose consumption is more directly related to population growth. The copper industry's current inability to generate and attract needed investment capital is attributable to these differences between copper and other com- modities; it suggests that the concept of copper purely as a commodity is outdated. The key to the problem is better integration between the activities of copper producers and users. Depending on cir- cumstances, integration takes various forms- for example, investment tied to long-term sales con- tracts between producers in developing countries and consumers overseas; common ownership of pro- ducing and manufacturing facilities in industrialized

Jan 1, 1978