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By L. Adler

To mine safely and efficiently the working conditions must be systematically de¬fined. Their uniqueness distinguishes mining from other engineering professions. The worst case in underground mining is delineated and termed "encumbered space'", since it "seriously impedes motion or action." Working space is inherently hazardous, transitory, and expensive, inducing it to be of low quality, tight and congested, vulnerable and deteriorating, and isolated and inaccessible. These adverse conditions, are damaging to cumbersome, mobile equipment, and affect all activities, including surface work. The conditions are reorganized using the fundamental engineering dimensions: space, matter time, people, and money. Comprehensive tables are presented with attention paid to "disaster potentials". Examples are cited.

Jan 1, 1982

By M. L. Smith

The U.S. Bureau of Mines Cost Estimating System (CES) has been used for prefeasibility analysis and mine cost engineering since 1978. In the past, prefeasibility analysis with CES has involved the solution of regression equations. The new generation of CES uses an object-oriented expert system in a Windows? environment. Knowledge bases are structured around generic mine models which access shared knowledge bases for system design.

Jan 1, 1994

By M. Birdsell

"Sustainable long-term restoration requires adequate planning and preparation, implementation, and measurement goals to monitor success associated with restoring sites to pre-disturbance levels of ecological health. The Buckhorn Mountain Mine riparian habitat restoration project has been a multi-year endeavor with a variety of restoration techniques implemented by Kinross Gold/Crown Resources Corporation. INTRODUCTION The Buckhorn Mountain Mine procured mitigation lands during the permitting process to be set aside for long-term restoration. A portion of this mitigation land included three aquatic habitat mitigation parcels; a spring and wetland complex and two stream and riparian corridors. These properties were historically used for agriculture purposes and livestock grazing. During initial permitting, habitat monitoring and mitigation plans were created to help guide restoration, and provide measures for success. Various techniques and adaptations have been implemented on the properties since 2007, and continued efforts are being implemented annually to ensure the long-term success of the project. Field measurements are collected annually to ensure mitigation objectives are being met, and provide opportunity to modify restoration efforts when necessary. MATERIALS/METHODS Restoration efforts have included implementation of several methods including livestock exclusion, treatment of state and locally listed noxious weed species, installation of regionally sourced riparian plant species and local stock willow cuttings. Annual mechanical and herbicide treatments for noxious weeds have been conducted annually. Efforts to control reed canarygrass (Phalaris arundinacea) have been implemented since 2013; methods include mechanical and herbicide treatments. A combination of methods has been employed to help aid restoration of native species within the riparian corridor, and increase survival of planted species, including weed matting and browse barriers to aid riparian planting success. Instream planting of local stock willow have also been employed to increase stream vegetative cover and provide long-term bank stabilization. Most recently, a perched culvert near one of the properties has been replaced with an aquatic life passable culvert designed to aid in the upstream migration of fish species into the stream system. Efforts to provide increased fisheries into upstream portions of the system and aid in restoration of stream bed and bank have been employed to increase the ecological value downstream of the replacement. In addition to efforts completed by the client to provide restoration efforts, a local non-profit organization, in conjunction with the client, installed beaver dam analogues (BDAs) in the fall of 2014. These structures are intended to raise water levels along stretches of incised channel in an attempt to flood historic off-channel floodplain"

Jan 1, 2016

By J. B. Cabezas

The metallurgical processes that are frequently applied today use strong solutions and are of alkaline, acidic, or organic nature. These play a very important part in recovery of values from many ores. These solutions are of such a chemical nature that they are generally corrosive, flammable, and contaminating. In most cases, they are highly dangerous to the environment. Within the extractive metallurgical industry, it is also very common to have to deal with the handling of contaminating solutions with a high content of cyanide, arsenic, mercury, lead, copper kerosene, acid and many other components whose temporary or permanent confinement within the process must be adequate and absolute.

Jan 1, 1986

By G. L. Black

Choosing a mining method for an underground ore body is a complicated and often iterative process. Advances in technology give the design team an overwhelming array of possibilities for methods and equipment. Hecla's recent discovery of the deep Gold Hunter ore body has given the staff at the Lucky Friday Mine the exciting challenge of determining the optimum mining method. Taking an ore body from prospect to production requires traditional resource characterization, including drilling, delineating and modeling. Developing the mining plan is an evolving process, changing with each new piece of information as the project progresses through exploration and development.

Jan 1, 1998

By B. A. Kennedy

The instrumentation, monitoring, and prediction of a major slope failure at the Chuquicamata mine are described. In December 1967, pre-existing tension cracks on the south end of the east wall of the Chquicamata mine began to open. Various forms of instrumentation were installed for continuous monitoring. These systems included tension crack stakes, crack extensometers, linear extensometers, tape and transit lines, sliding wire contacts, and a seismograph. From the information obtained, the failure date was accurately predicted some five weeks before failure, enabling the mine to reroute truck and rail access; hence, causing a minimal mine shutdown of two and one-half days and preventing any injuries to persons or damage to equipment. The shape and form of the sliding mass are analyzed, as are the possible modes of failure.

Jan 1, 1970

By T. G. Hayes

Economic and environmental regulations in the coal industry have required companies to evaluate their current blasting method of loosening in-situ coal. This paper will review ripping vs. blasting thick in-situ coal seams, handling frozen active coal stockpiles and proper stockpile conditioning and reclaiming. How basic operating technique can improve job efficiency, productivity and cost per ton.

Jan 1, 1995

By Milos Krofta, Donald B. Aulenbach, James P. Van Dyke

INTRODUCTION An innovative Ø.1-MGD (378.5-m3/day) biological and phyicochemical wastewater treatment system at Hancock, Massachusetts, USA, has been treating the domestic sewage generated from the four-season Jiminy Peak timeshare resort since 1985. The influent raw sewage is collected and equalized in an equalization tank, then biologically treated by two rotating biological contactors (RBC). A portion of the RBC effluent is discharged to a secondary sedimentation tank to simulate conventional waste treatment by a conventional RBC system. For parallel treatment the remaining portion of the RBC effluent is discharged to an innovative Sandfloat (SASF-8) clarifier to simulate a two-stage biological and physicochemical treatment by RBC-Sandfloat. Both secondary sedimentation effluent and Saandfloat effluent are later combined together and discharged to a tertiary sand filter and two UV disinfection'units for final polishing. The operation and performance data of Jiminy Peak plant in the period of May 1985 to March 1988 was fully documented in the Lenox Institute technical report No. LIR/Ø3-88/292 (391 pages, March 1988). This report presents only background information and complete plant data in the period of April 1988 to January 1989. Dr. Lawrence K. Wang and Mr. James P. Van Dyke have been the Consulting Engineer and Director of Special Projects, respectively, for the Jiminy Peak Project since 1985. (Key Words) Innovative and Alternative Technology, Rotating Biological Contactor, Sandfloat, Dissolved Air Flotation, Sedimentation, Tertiary Filtration, Ultraviolet, Disinfection. BACKGROUND INFORMATION Jimmy Peak, Inc., Hancock, Massachusetts, has designed and constructed a secondary wastewater treatment system consisting of preliminary/primary treatment facilities, two rotating biological contactors, a dissolved air flotation clarifier, a secondary sedimentation clarifier, a sand filter and two ultraviolet (UV) disinfection units. Total average wastewater flow is approximately Ø.1 ) (378.5 cubic meters per day). In accordance with the Consulting Engineer's preliminary design, the total wastewater stream is initially collected and equalized by an equalization tank, and then biologically treated by rotating biological contactors (RBC). Part of the RBC effluent is diverted to a Krofta Sandfloat (SASF-8) for physicochemical clarification in order to simulate an innovative RBC-Sandfloat two-stage waste treatment system. The remaining part of the RBC effluent is diverted to a sedimentation tank for secondary clarification in order to siumulate a conventional secondary RBC-sedimentation waste treatment system for the purpose of parallel comparison. Both Sandfloat effluent and sedimentation effluent are later combined together and discharged to the subsequent sand filter and UV disinfection unit for final polishing. Figure 1 shows the flow diagram of Jiminy Peak Plant. The Massachusetts Clean Waters Act (M.G.L.c.2l,s.26-53) was amended by Chapter 246 of the Acts of 1973 to authorize the Massachusetts Department of Environmental Quality Engineering (DEQE), Division of water Pollution Control, Boston, Massachusetts, to regulate discharges into all waters of the Commonwealth of Massachusetts, including groundwaters. The DEQE regulates discharges through the issuance of discharge permits which impose limitations on the amount of pollutants which may be discharged in the effluent, together with monitoring and reporting requirements and other conditions to insure adequate treatment of all liquid wastes prior to discharge. The DEQE reviewed the application submitted on behalf of Jiminy Peak, Inc. for a permit to discharge sanitary wastes from the Jiminy Peak secondary wastewater treatment system located off Brodie Mountain Road, Hancock, Massachusetts, and subsequently developed the conditions contained in the Groundwater Discharge Permit No. Ø-188. More specifically, Jiminy Peak, Inc. (i.e. the permittee) has been authorized to discharge into the ground from the Jimmy Peak secondary wastewater treatment facilities for which the Permit No. Ø-188 was issued, a treated effluent

Jan 1, 1989

By K. H. Singh

The addition of new data and corrections can be made under the control of a simple editing session. All programs for this system are written in FORTRAN and executabe "MACROS".. After the addition of new data, the whole file Is reinitialized to update the binary file and cross-reference tables. Updating the binary file involves rerunning the initializing program. The creation of graphic plots like cross sections and plan views is menu-driven from a terminal and very user-friendly. Small files containing not more than 10,000 entries (survey and assay points) are suitable for this setup, particularly for computers with less than 2 Megabytes of real and virtual memory. The largest file processed contained 35,000 lines of survey and assay information and required 4 megabytes of virtual memory. Working with this size file slows down the time for the creation of plots and cross sections. Another independent system is more akin to a financial type of data base. It was installed in one Anaconda mine as part of the operation's inventory, warehouse, day-pay payroll, and purchasing data bases. It is a highly hardware-dependent system, in particular, IBM's CICS/VS (Customer Information Control System/Virtual Storage). This is a true relational data base that optimizes storage requirements, supports online inquiry, update, data entry, and data security. While this system has been tested and proven in accounting applications, it requires programming expertice in PL/I and other CICS utility programs. It is well suited for huge data bases (like the 35,000 lines of data), but cumbersome for small engineering files.

Jan 1, 1985

By Samuel Polinsky, Lawrence W. Bierman, Wayne Perkins

[A column float beneficiation plant using 9, 8.5 foot diameter, cells was constructed by the Simplot Company and the Smoky Canyon Facility in the fall of 1986 and has been in operation since May of 1987. The float beneficiation process was developed jointly by the Simplot Company and the Bureau of Mines (Salt Lake City, Utah) which incorporates the Bureau's bubble generator design and chemistry system based around the reverse float technology, (Albany Bureau of Mines, Application of Carbonate-Silica Flotation Techniques to Western Phosphate Materials, Rule, Dallenbach , Larsen, RI8728, 1982) . This chemistry has been modified by Simplot in both patented and unpatented improvements. The objective of the beneficiation process was to reducethe A1203 content in the overall pipeline concentrate by 0.2 wt z. Therefore, a process stream was identified in the mill circuit which provided an opportunity to isolate and treat 1100 tons per day of poor quality phosphate concentrates The process allows recovery of approximately 15% of the mill concentrates, otherwise unsuitable for fertilizer production. The alternative would have been to waste this ore. Wasting would have resulted in considerable ore loss, increased mining costs and required additional products grinding. ]

Jan 1, 1989

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company's ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining's future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year's end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year's end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world's gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999

By Albert Hofstra, Joel Leventhal

The gray, dark gray and black colors of the sediments and the presence of pyrite in the Carlin, Jerritt Canyon, Horse Canyon, Betze, and Gold Acres sediment-hosted disseminated gold (SHDG) deposits indicate that these rocks are not oxidized with respect to carbon and iron sulfide. Both ore and non-ore host rocks generally are dark colored. Analyses for noncarbonate carbon (usually called organic carbon) in samples from SHDG deposits and related unmineralized rocks indicate that these rocks contain from a few tenths to a few percent carbon. We use the term noncarbonate carbon because, strictly speaking, organic carbon denotes carbon that is bound to hydrogen. However, the carbon present in SHDG deposits and related rocks has very little hydrogen chemically bound to it. Rocks with less than 2% organic carbon are usually gray in color. The dark colors in our samples are due to the relatively high temperatures that these rocks have experienced relative to organic matter maturation. We confirm the results of Nelson et al. (1982) that previous reports (for example, Radtke and Scheiner, 1970) were incorrect in reporting significant amounts of humic acids, extractable hydrocarbons (bitumen) or "carbonaceous" material. We believe these reports had problems with contamination or misdirected emphasis. Our samples consisted of unweathered rocks, collected mainly from mine cuts (benches, trenches, cores) and put into glass containers or wrapped in aluminum foil to avoid contamination. Only a few samples were collected from natural outcrops. We were careful to avoid samples in proximity to blast holes that were packed with ammonium nitrate and diesel fuel ("ANFO"). Contamination by ANFO may explain some of the previous reports of hydrocarbons, pyrobitumens, humic acids and anomalous nitrogen. When we were collecting samples, it was apparent that in addition to lithologic and color differences, the surface appearance of the rocks was distinguishable: "preg robbing" material that had a sooty surface; "graphitic" rock with a shiny surface; and more ordinary rocks that had a flat gray or black appearance. [Preg robbing is a term for ores that adsorb gold from the milling circuit; the graphitic material had not been x-rayed to actually identify graphite.] We hoped that laboratory study of these samples would show some fundamental differences that we could relate to ore genesis. Even though these sample types appeared different in the field, we could not distinguish any differences in thermal maturity (see below). Normal petroleum/organic geochemical laboratory procedures (solvent extraction, Rock-eval, pyrolysis-gas chromatography) failed to yield much information because the carbon was over-mature relative to oil and gas generation. Rock-eval results show less than 20 (± 20) mg of pyrolizable hydrocarbons per gram organic carbon (and an indeterminate Tmax) indicating that the organic matter in these deposits is burned-out relative to petroleum generation [with an H/C (atomic) ratio of less than 0.41. Because of the non-definitive results from standard organic geochemical methods, x-ray diffraction (XRD) and Raman spectroscopy were used to characterize the carbon. Prior to XRD, samples were treated with HCl and HF acids (1) to remove quartz that has a peak near 26° [20] at the position of the 002 peak of graphite and (2) to concentrate the carbon to a level detectable by XRD. The residue was put on a colodion mount and analyzed by XRD. The XRD analyses yielded a broad peak at 26° [20]. The shape of this peak indicates that the carbon is more thermally mature than anthracite rank coal but less mature than crystallized graphite. Based on XRD results from the literature (Landis, 1971) that are calibrated to metamorphic facies, results from our samples correspond to pumpellyite-actinolite to lowermost greenschist facies conditions, probably

Jan 1, 1990

By R. M. Barker

The historic Getchell property is currently being mined from the Getchell Main Underground workings, a foot wall extension of the Getchell open pit deposits along the Getchell fault. Drift-and-fill techniques are used to extract the ore through a ramp access. The adjacent Turquoise Ridge deposit is currently under development via two vertical shafts. Together, the two mines will continue to provide feed to the Getchell's 3,200 tpd mill/autoclave circuit, taking Getchell Gold from its current production rate of 200,000 ounces (Au) per annum, to over 400,000 ounces (Au) per annum by 1999.

Jan 1, 1997

By C. Y. Kao, Roger Y. Cheng, C. S. Hsieh

The mushroom-shaped Minghu power cavern located in central Taiwan is 21.2 m (W) by 40.5 m (H) by 127.2 m (L) and is designed to house 4 units of power generating-pumping equipment with a total capacity of 1,000 MW. This paper presents an introduction to the geological conditions at the cavern site; the rock mechanical tests undertaken; the design approach adopted; the construction method and sequence followed; and the instrumentation provided in the roof arch to monitor the behavior of the surrounding rocks. The measured data collected from the embedded instruments will be compared with those obtained from theoretical analyses and presented in this paper. Several technical problems encountered during the construction stage are covered and the solutions of these problems are also described therein.

Jan 1, 1983

By S. C. Tadolini, P. Mills

"INTRODUCTION This research produced a shotcrete formulation that extends beyond stabilization and can be used to restore the structural integrity of damaged infrastructure. The primary challenge was to develop a shotcrete or gunite with structural strength within a few minutes to prevent parasitic loading and allow ingress into damaged structures within a few minutes of the mix formulation being applied. This also applies to mining conditions where rapid support of progressive failures can minimize failure. An additional benefit was the discovery that the product had extremely high adhesion properties in addition to high flexural strengths. The approach to product design was the development of “single bag” dry mixes that are entirely self-contained, can be rapidly transported anywhere in the field or underground, and be deployed using simple equipment. Dry mix eliminates issues relevant to high shear water mixing, as water is added in the form of a mist at the point of delivery; thus low W/C can be achieved. However, as there is no onsite powder mixing, the product must have a high degree of inherent homogeneity. A commercial version of this material is currently offered as Minova’s Tekcrete Fast® product which has been successfully deployed in the mining industry and is currently being used in civil, construction and tunneling operations. The material can rapidly stabilize unstable ground in metal/nonmetal and coal mines. This paper described the technology development, product testing results and applications in mining and civil applications. BACKGROUND The original development of this product was to complete rapid stabilization of shock damaged structures, which falls outside the purview of normal construction and mining practices, due to the critical time issue and the nature of the damaged structure. The stabilization of damaged structures requires materials and equipment that can be rapidly deployed to place materials that have very rapid strength development. These materials need to be placeable at a distance to provide some degree of safety to the responders. In addition, the materials must be able to adhere to structural surfaces that have not been specially prepared and conditioned, and may also be highly fractured, dusty, wet, and quite possibly hot or extremely cold. The technology for the rapid delivery of large volumes of cementitious materials to vertical or even overhead surfaces currently exists. Pneumatic delivery (shotcreting) has been used in construction for over 100 years (American Shotcrete Association, 2014). Shotcreting has played a major role in structures like the Washington D.C. Metro subway system and been used in underground mining applications routinely to serve as part of the primary and secondary support system when used in conjunction with traditional roof bolts. Numerous rapid setting cements are commercially available. They are used for rapid repair of surfaces such as bridge decks, pavements, and commercial floors, as well as structural repairs of vertical and overhead surfaces. Few of these products are specifically marketed for use in shotcrete applications. The majority of rapid setting cements are based on, or at least contain, Portland cement as a principle component. Other components are added that help provide early strength, such as high alumina cement (HAC), organic polymers, chemical accelerators (which can also be added during concrete batching), and calcium sulfate hemihydrate (e.g. gypsum plaster) (Lea, 1971). Cementitious mortars prepared with some of these cements can achieve compressive strengths of 6.8 – 13.8 MPa (1,000-2,000 psi) within 1 hour. However, Portland cement mortar and concrete typically require many weeks of proper curing to reach significant levels of their ultimate strengths, even when used with set accelerators. Also, high early strengths require the use of large proportions of Portland cement in the concrete mix, which can lead to high heat evolutio"

Jan 1, 2017

By J. D. Brown

The purpose of this paper is to inform members of the coal producing and consuming community about techniques used by The Carter Mining Company to control product quality at a large surface coal mining operation. During the early years of mining operations, coal quality received adequate attention but the Company's main emphasis was to build up its production rate and minimize mining costs. While these goals are still of prime importance, coal quality has received substantial attention in recent years. A Company guideline that no coal shipment shall exceed any contract or company-imposed coal quality specification has been successfully implemented. To implement this guideline, geology and coal quality modeling procedures were improved, in-pit drilling and blending programs were refined, and detailed shipment procedures were developed. Background Surface coal mining of subbituminous C rank coal in the Cillette. (Campbell County) Wyoming area has become increasingly competitive during recent years. Prior to 1974, one small surface mine produced coal for local consumption. During the last ten years, 13 new surface coal mines have been constructed. Coal production from Campbell County, Wyoming totalled 88 million short tons (79.8 million metric tons) in 1983, the majority being shipped to electric utilities in the central and southern United States via unit trains having a capacity of 10,000 short tons (9,072 metric tons).

Jan 1, 1984

By Gregory M. Rumbaugh, Todd Kostecki, Christopher Mark

From 2015 to 2021, five massive pillar collapses occurred at four underground stone mines in the eastern United States. These events resulted in powerful airblasts that damaged mine infrastructure and mobile equipment, seriously injured miners, and disrupted underground travelways. Each of these pillar collapses propagated through the overlying strata, causing a subsidence basin on the surface. Pillar collapses are particularly hazardous for miners because they can occur with little warning and can affect miners that are far from the pillar collapse area. The following case studies show that certain factors may increase the likelihood of a pillar collapse. For instance, each of the five events involved the collapse of at least twelve benched pillars with width-to-height ratios (w/h) of 0.8 or less. This study elaborates on

By E. B. Thorn

The production of portland cement requires that four basic elements -- calcium, silica, alumina and iron -- be ground to a fine powder, homogenized, and fed to the pyroprocessing unit, where it is burned to a cement clinker. The raw material must either be ground wet in a slurry form or dried and ground to a dry powder, with a fineness of approximately 85% passing the 200 M screen. According to the Portland Association's Plant Information Summary, approximately 38% of the U.S. capacity is ground wet and 62% ground dry. The following data is taken from the Portland Cement Association's 1981 Energy Survey: [Million BTU/Ton kW h/Ton Wet Process Plants 5.86 138 Long Dry Process Plants 4.97 123 Dry Preheater Plants 4.03 157 ]

Jan 1, 1984

It was shown previously that chalcopyrite could be floated without using a collector when the ore samples were treated with small amounts of sodium sulfide (Na2S). The role of this reducing agent was considered to be one of a cleaning agent to remove the hydrophilic surface oxidation products. It was later found, however, that the collectorless flotation could be obtained only under slightly oxidizing conditions. This might suggest that collectorless flotation is not due to the clean surface but to the elemental sulfur which may be present as an incipient oxidation product. Therefore, a search for the presence of elemental sulfur has been made by means of ESCA, mass spectrometry, and solvent extraction followed by W spectrophotometric analysis. On the basis of these results, the mechanisms of collectorless flotation are discussed.

Jan 1, 1983

By S. D. Bechtel

Bechtel Civil and Minerals, Inc., one of the Bechtel group of companies, is a large engineering and construction firm that services the mining industry, among others. The firm's head, S. D. Bechtel Jr., comments on how his E&C company is dealing with the recessionary economy. First, he offered a historical perspective. About a half century ago-in the middle of the Great Depression-W. A. Bechtel and several business partners drew up a fixed price bid to build the Hoover Dam. At that moment in history, the W. A. Bechtel Co. was a modest success, but the times were troubled and uncertain. Money was scarce and a lot of contractors across the country were one project ahead of bankruptcy. The bid for Hoover was a make-or-break proposition for Bechtel, and it turned out successfully. The Hoover Dam was a no-frills operation in an isolated and harsh environment. There was plenty of hard work, long hours, and not many amenities. Controlling costs was critical. Everyone knew what had to be done, and why and what the consequences were. Today's Challenge Bechtel is now a bigger, more complex organization whose management views the current economic recession as a challenge to be met in much the same way W. A. Bechtel met the challenge of the Hoover Dam: by pulling together with a sense of purpose and direction. In many respects, Bechtel's situation today has a number of parallels to that which faced my grandfather. The company is eminently successful, but times are tough and there are plenty of signs that they could get tougher. My grandfather bet on the Hoover Dam to insure the future health of his company and I think we can work together again in that same tradition, make some tough decisions together, and the company's future can be just as promising. The first and most important requirement is to make certain that everyone understands the situation. The Bechtel group of companies are in an excellent financial position now. Its workload hit an alltime high in 1982 and it is well positioned in its principal markets. But the next two years may be critical for the company. Traditionally, Bechtel's work load lags behind general developments in the economy. Although many of its clients continue to suffer serious business difficulties, Bechtel is only beginning to feel the impact. The worldwide market for basic metals remains soft; relatively low prices and abundant supplies of oil and gas have flattened the petroleum market and made once promising synfuels projects economically unattractive; utility clients are still caught in the vise between overregulation and escalating costs. And persistently high, long-term interest rates have made capital investments expensive and difficult to justify. The company maintained a healthy workload through 1982. In some areas it has had little new work and consequently has been forced to lay off some staff as projects have been canceled or concluded. In other areas new work has tided the company over and more people have been hired. But new work bookings have fallen off, creating some uncertainty for the near future. 1983 requirements are clear, although seemingly contradictory. Belt tightening and cost reduction are necessary for Bechtel to remain healthy and competitive, enabling it to handle a possible further downturn with a minimum of turmoil and dislocation. At the same time, we need to allocate resources and funds in areas that will keep us positioned for the turn-around marketplace.

Jan 2, 1983