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By H. Lyn Bourne

This is the fourth annual tabulation that gives mineral royalty information. The table presents previous information plus about two dozen new entries. In addition to the royalty information, some entries show the cost of purchased reserves. Last year's tabulation appeared in two issues, to accommodate all of the information. This year the format has been changed slightly so the table can be printed in one issue. This year's table presents the commodities in the same sequence as last year. Sand and gravel information appears first, followed by: crushed stone for aggregate; other stone; industrial sand; other industrial minerals; energy minerals (coal, oil shale, uranium); and finally metals. As always, a caveat relates to factors that influence the reserve values. The data should serve only as a general reference. The table is not intended to present an absolute scale of reserve costs. Several factors influence the value of mineral commodities. These factors include: • location and transportation costs (especially significant for most industrial minerals); • market conditions for both the commodity and the company acquiring the right to mine it; • quality or grade of the deposit as it reflects the amount of processing and beneficiation necessary to produce the finished product; • and legislative restrictions and conditions for mining a given material at a given site. These and other factors will influence reserve costs of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity; the location (either by state, US geographic area, or Canadian province); the cost (R for royalty and P for purchased cost); and the year in which the lease or purchase agreement occurred. The last column offers either comments or gives a footnote number for more information. The cost column requires more explanation. The units may refer to cubic yards (/yd), cubic feet (/cuft), tons (/T) (2000 lbs) or acres (/A). 1 cu yd = 0.76m3 1 cu ft =0.28m3 1st = 0.9 t7 1 acre = 0.40 ha or m2 In several cases the royalty is a percentage of the finished products, sale price and is levied against either the amount produced or the amount sold. We thank those who contributed information for the table: J. Dunn, T. Eyde, K. Loda, L. Morgan, F. Nix, H. Sorenson, and L. Williams. Several people have said they would like this to be an annual tabulation. That can happen if new information comes to the writer. What appears in the table is only a very small fraction of the cost information relative to the various commodities and the geographic areas for which there is royalty information. If you find this column of interest and possess information write or call: H. L. Bourne, c/o Neyer, Tiseo & Hindo, Ltd., 38955 Hills Tech Dr., Farmington Hills, MI 48018, (313) 553-6300. Only with new information can this become an annual and current source of reserves costs.

Jan 8, 1986

By Michael L. Wayman

Archaeological and ethnographic work during the last century has shown clearly that metals have played a small but important role in prehistoric Arctic cultures. For at least the past several millenia both iron and copper have been used in the North, primarily for blades, projectile points, knives, awls, engraving tools, fishhooks, scrapers and axes. In addition they were used for joining purposes as staples and rivets. It is of great interest to enquire into the origins of these metals. In this connection one begins with the observation that to date there has been no clear evidence for the smelting or melting of metals in the Arctic prior to the arrival of Europeans. This can be explained partly by the absence of traditional pyrotechnologies such as the high-temperature firing of ceramics and the heat treatment of bone and wood. Another factor which surely inhibited the development of smelting/ melting operations is the relative absence of wood in the region. The production of charcoal for smelting requires large quantities of wood, to the extent that the desertification of a number of areas in the Old World is believed by some to have been at least partly caused by charcoal production. In the North this was obviously not possible. Thus the Arctic peoples were restricted to using native (naturally occurring) metals and metals obtained by various direct and indirect forms of contact with areas of the world where smelting was practiced. Both of these sources were important in the case of iron; we know that meteoritic iron, telluric (native) iron and smelted wrought iron were all used in the Arctic. These three types of iron will be considered in tum.

Jan 1, 1999

By H. Agnerian

"A survey of 925 mineral property transactions worldwide was carried out between 1987 and 2004. These mineral properties with reported Mineral Resources include 457 gold properties, 322 base metal properties, and five platinum group element (PGE) properties. Based on constant Canadian dollars, the results of the survey indicate that:• In general, unit metal values in the ground (e.g. $/oz Au or $/lb Cu) have kept pace with the changes in the respective metal prices during the period of the survey.• A general decrease in unit gold values in the ground has occurred from about $57/oz Au in 1987 to about $11/oz Au in 2002 for Canadian mineral properties, with the exception of a peak of $58/oz Au in 1996.• A similar trend for mineral properties has occurred in the United States, but with lower unit values, in the range from $1/oz Au to $10/oz Au during the last three years of the survey. • Unit metal values in the ground for gold properties in Canada were higher than for those in the rest of the world.• Unit metal values in the ground for copper properties in Canada were in the mid-range compared with other countries in the rest of the world; the United States and Australia were higher and Latin America, Asia, Africa, and Europe were lower than in Canada.• Unit metal values in the ground for zinc properties in Canada were also in the mid-range compared with other countries in the rest of the world; Latin America and Europe were higher and the United States, Australia, and Asia were lower than in Canada.• Unit metal values for nickel properties in Canada were highest compared with other countries in the rest of the world, followed by the United States, Australia, Africa, and Asia.• Gold values in the ground in Canada have ranged from 6% to 14% (with an average of approximately 10%) of the gold price.• The unit values of base metals in the ground have been in the order of 2% of the quoted metal price, during the period of the survey."

Jan 1, 2006

By Douglas B. Silver

Super Cycle future The final topic is mining?s future. The most important questions are ?How much longer is the Super Cycle going to last? What should we expect to see going forward? How will the Super Cycle end?? Three possible scenarios follow. Scenario one: Super Cycle has peaked Kathy Casey-Kirschling is officially the first Baby Boomer. She was born Jan. 1st, 1946. If you google ?first baby boomer,? she?s the one that shows up. A Baby Boomer is anybody born between 1946 and 1964. In the United States, it represents about a quarter of the population ? approximately 76 million people. The Baby Boomer generation is going to change the economics of the world because there are so many in the generation. A review of spending patterns indicates that the largest amount of discretionary spending occurs between the ages of 49 and 52. Retired people tend to live on fixed incomes so they have less discretionary income. They also tend to downsize their house, which may contribute to the housing glut and the need for a lot less metal. Therefore, the upcoming retirement of the Baby Boomer generation could result in a massive shift in economic spending resulting in the peaking of the Super Cycle. Figure 1 is an index graph from the Toronto Stock Exchange (TSX). The index has recently peaked. A lot of people see that as a sign that bad things coming our way. A careful review of different commodity prices also suggest that the peak has occurred and it does not seem to matter which commodity prices are considered. Copper prices have seen a peak as have nickel prices. Nickel and molybdenum displayed the same trend with a peak in 2005 as did zinc. Uranium, which has single-handedly tried to behave like the dot com craze, has also peaked.

Jan 1, 2008

By George D. Dub

The Bureau of Mines, in connection with the investigations of war minerals it conducted, examined the graphite deposits of this country, studied the methods of mining and preparation used, and sought to devise more efficient methods for the preparation of domestic graphite, and to standardize the quality of the product. The graphite investigations covered three general phases, as follows: 1. An examination of the deposits in Alabama and other States, and a survey of the methods of mining and preparation used. In this connection methods of sampling and analysis were noted and experiments made to determine a standard method of sampling and a, rapid but accurate method of analysis. 2. Experimental work on the concentration and refining of domestic crucible graphite to improve the quality of the product and to lessen waste. 3. Experimental work in crucible manufacture to determine the properties of domestic flake and the maximum proportions that might be used without impairing the quality of the crucibles. This work was accompanied by photomicrographic study of crucible structure.

Jan 1, 1920

By Cory G. Rice

A significant portion of the piling industry has long felt relying on soil setup to gain the required capacity is a complexity that would rather not be dealt with. Instead, the pile are driven to the required capacity on the initial drive and the potential gain of capacity due to soil setup is simply considered an added bonus or safety factor. There appears to be an attitude that if one did not put in the energy required to develop the full capacity on the initial drive, then one should not expect to gain anything from Mother Nature for free. However, substantial savings in time and materials can be realized by properly accounting for setup. This paper will show the impacts and ramifications this rationale can have on required labor and material costs and illustrate a case history with significant soil setup and the savings realized on a project currently being constructed.

Jan 1, 1992

By M. Kumaran, A. Vetriselvan, A. Purantharan

"This paper presents a case history of evaluating the stability of a distressed earth bund and rectification measures carried out. A 5.45 km long, 7m high earth bund for drinking water storage was constructed in Andhra Pradesh. During construction of the bund following were observed – (a) a longitudinal crack at the downstream side (b) Bund on the downstream side along the crack settled to a max of 700 mm and (c) downstream rock toe level area raised by heave up to 175 mm. Investigation of the events made important contributions to the fundamental understanding of the behaviour of large earthworks of this type. It was found that the variation in subsoil strata was not addressed during the execution.After careful evaluation, stone columns were recommended as a suitable ground improvement technique. Stone columns were used as a reinforcement to improve the shearing resistance of foundation and in turn ensure stability. By using and applying advanced geotechnical engineering analysis tools and modelling techniques, earth bund and its foundation was analysed and examined against failure by slope instability. Stone column design was carried out using in-house computer program GEOSTONECOL and stability of earth bund was analysed using TALREN software. Earth bund construction was completed after ground improvement and is performing satisfactorily.INTRODUCTIONIn order to supply water during summer season, Government of Andhra Pradesh decided to construct a 7m high and 5.45km long earth bund summer storage tank. It was one of the largest earth bund summer storage tanks in whole of South India at the time of its construction. During construction, the earth bund has undergone sudden distresses. Investigation of the series of events occurred during construction has made important contributions to the fundamental understanding of the behaviour of large earthworks of this type. This paper presents the reasons for earth bund failure, slope stability assessment of the distressed earth bund and recommendation of stone column as a suitable ground improvement remediation technique.DESCRIPTION OF STUDY SITEThe characteristics of the original construction are briefly described as follows. A shallow cut-off trench was excavated below existing ground level at the centreline of bund as shown in Fig. 1. Below the base of the trench a cut-off grout curtain was installed. Upstream and downstream shell earth filling was carried out using Clayey Sand ‘SC’ type soil. At some locations, bottom of cut-off trench has reached as deep as 12m from the existing ground level."

Jan 1, 2017

By Donald Christofferson

This report documents the program conducted to demonstrate the application of a flywheel-powered propulsion system to underground mining shuttle cars. Such application can replace the present electrical trailing cable common to most shuttle cars and thereby eliminate those safety hazards, maintenance problems, and haulage route limitations inherent in the trailing cable. Described are the activities undertaken to specify and design a flywheel of optimum size, shape, and material; to identify the best concepts of input and output systems; and to achieve installation of the power package into a shuttle car. The resultant Flywheel-Powered Shuttle Car is an FMC Model 6L shuttle car, 6-ton capacity, 20-ton gross vehicle weight, powered by a flywheel system with 4.5-kilowatt-hour usable energy. The completed vehicle was delivered to the Bureau of Mines in Bruceton, Pennsylvania, for testing and evaluation.

Jan 1, 1986

Researchers, medical organizations, statisticians, and others often use data on the nature and rate of occurrence of occupational diseases in directing their efforts and plans. Very often this information is developed from the reports of the States which describe the nature of work¬men's compensation claims and awards and the frequency with which they are made. To be meaningful, the statis¬tical information must be viewed in the context of the State laws involved. There is considerable variation among the laws of the different States. The Bureau of Mines has responsibilities for protecting the health of persons employed in the mineral industries and for the development of useful mineral products. To assist the Bureau in the accomplishment of its objectives, this compilation has been undertaken. For the benefit of the mineral industries, and any others who may have a similar interest, this volume is made available. An earlier compilation of the Bureau of Mines on this subject was published in 1952.4 However, during the intervening years, sufficient changes have been made in State laws to warrant completely recompiling the information. This publication includes the laws of the States, the District of Columbia, Puerto Rico, and the Virgin Is¬lands through 1964. Only those portions of the workmen's compensation laws which apply to or as ' related to occupational diseases are presented, and in each case enacted additions to and deletions from the basic law have been incorporated into the text of the law, thus snak¬ing it unnecessary to search out the various amendments made each year.

Jan 1, 1967

By R. G. Benson, P. R. Wotruba, K. W. Schmidt

Introduction The Fortitude deposit is located in Nevada's Battle Mountain mining district in the central Great Basin region of the Basin and Range province of the western US. The deposit is at Copper Canyon in the southernmost portion of the district, about 19 km (12 miles) southwest of Battle Mountain (Fig. 1). Mining activity in the district began in 1866 (Roberts and Arnold, 1965). Base and precious metals were mined by underground methods intermittently until 1955. Placer gold was first discovered at Copper Canyon in 1912. Moderate scale dredging of alluvial gravel at the mouth of Copper Canyon was conducted by the Natomas Co. from 1944 to 1955 (Johnson, 1973). In 1967, Duval Corp. began large scale open-pit copper mining. (Sayers, Tippett, and Fields, 1968). Copper prices decreased and precious metals prices increased in the mid-1970s so Duval's exploration efforts at Copper Canyon shifted to precious metals. These exploration efforts resulted in the discovery of the Tomboy-Minnie deposits and shortly afterward, the Northeast Extension deposit at Copper Canyon (Blake, Wotruba, and Theodore, 1984; Fig. 2). The Fortitude deposit was discovered in late 1980, after Duval had proceeded with precious metals production at Copper Canyon. Converting the existing plant facilities at Copper Canyon to a precious metals recovery system was completed in 1978 (Jackson, 1982). Production from the Tomboy-Minnie deposits began in early 1979. Precious metals production moved to the Northeast Extension deposit in 1982. In late 1984, after three years of preproduction stripping and mining of the Upper Fortitude ore zone, production from the higher grade Lower Fortitude ore zone began. Currently, Battle Mountain Gold Co. operates the Fortitude deposit. Production from the Battle Mountain mining district before 1967 included 4.6 t (150,000 oz) of gold, 65.3 t (2.1 million oz) of silver, 13.6 kt (15,000 st) of copper, 4.5 kt (5,000 st) of lead, and 13.6 kt (15,000 st) of zinc (Roberts and Arnold, 1965). At the time of Duval's 1967 start-up, ore reserves at Copper Canyon included 12.6 Mt (14 million st) in the East ore body and another 3.6 Mt (4 million st) in the West ore body. Both had average grades of 0.79% copper, 16.1 g/t (0.47 oz per st) silver and 0.86 g/t (0.025 oz per st) gold (Blake et al., 1984). The Tomboy-Minnie deposits collectively contained 3.5 Mt (3.9 million st) of ore grading 3.09 g/t (0.09 oz per st) gold and 9.6 g/t (0.28 oz per st) silver. The Northeast Extension reserves were identified as 1.4 Mt (1.5 million st) of ore with an average grade of 2.9 g/t (0.085 oz per st) gold and 5.1 g/t (0.15 oz per st) silver. Initial total reserve estimates for the Fortitude deposit were 14.5 Mt (16 million st) grading 5.14 g/t (0.15 oz per st) gold and 29.8 g/t (0.87 oz per st) silver (Jackson, 1982). Therefore, before large scale mining, the Copper Canyon area contained a minimum of 102.6 t (3.3 million oz) of gold and 541 t (17.4 million oz) of silver as mineable reserves. The Fortitude deposit reserves as of Jan. 1, 1985 were 10.6 Mt (11 million st) grading at 5.28 g/t (0.154 oz per st) gold and 28.5 g/t (0.83 oz per st) silver. Currently, the company is producing 6.8 t (220,000 oz) of gold and significant amounts of

Jan 7, 1986

By Steve Kral

Led by a surge in coal production and prices in recent years, Colorado’s mining industry is taking part in the same revival as others states and the world. Not too many years ago, the state’s industry was languishing in the same doldrums as the rest of the mining world. Ironic for a state whose history was based on mining. Now, however, Colorado’s mining can boast increased production in all commodities produced, along with prices that allowed companies to expand, increase work forces and post improved shareholder value. So there was a lot of optimism at the Colorado Mining Association’s (CMA) 107th National Western Mining Conference in February. The conference, held in Denver, attracted more than 500 attendees and 39 exhibitors. The theme was Colorado Mines the World.

Jan 1, 2005

By J. C. Thornley

Service failures of seemingly conventional galvanized bolts, in normal operation, on transmission towers in New Brunswick have been found to be the result of hydrogen cracking. In both these cases, similar failures elsewhere can be avoided by suitable clauses in the purchase specifications. In the first case described, the manufacturing procedure was responsible for strengthening and embrittling a standard, soft, constructional steel. In this case, a fracture mechanics analysis predicted critical crack depths for final fracture very similar to those found in practice. This case reveals an apparent cooperative connection between hydrogen embrittlement and strain ageing in plain carbon steels. In the second case described, the steel was simply a high strength steel which should not have been made into galvanized bolts.

Jan 1, 1979

By Ernest W. Hilton

The purpose of this investigation was to assess the environmental impact of the surface mining methods currently used in the steep-sloped areas of Central Appalachia: southern West Virginia, eastern Kentucky, southwestern Virginia and northeastern Tennessee. Comparisons are made between mountaintop/cross ridge mining, contour strip, augering and an innovative method surface shortwall mining which was attempted at Julian, West Virginia. Included in this final report are a discussion and analysis of current Appalachian production, reserves, and the extent of land affected on a county- by-county basis. Additionally, the seams within the steep sloped region have been assessed according to minimal standards of thickness, surrounding lithology, and areal extent to determine their amenability to surface shortwall mining. These seams have been tabulated with their ash, sulfur, and BTU content on a county-by county basis. Only minimal statements are made concerning quantity because of the narrow set of conditions required by the shortwall method. Other sections deal with the possible technical failings of an operational surface shortwall system based on field studies at shortwall operations, discussions with people experienced with shortwalls and research into ground control problems at sites where short- and longwall operations have been monitored. A final section details proposed additional research directions which the Bureau might take in the future.

Jan 1, 1979

By Paul M. Tyler, Colin G. Fink

THE field of rare metals is so broad that progress can be reported upon many important fronts. Not satisfied with the 92 elements that Mendeleeff and his followers have accepted as legitimate, scientists are trying now to complicate matters by making new elements. Enrico Fermi announced the fabrication of "Element 93". Uranium, instead of being allowed to disintegrate slowly according to its normal habit, was bombarded with neutrons until some of them seemed to have stuck in the nucleus. To understand just what is alleged to have happened all one has to do is to line up the elements in their usual order of ascending atomic weight and imagine, as physicists do, that each atom is a little solar orbit comprising a central mass or planet about which other masses revolve like satellites. Ordinary hydrogen, being very light, consists of only one positively charged proton center, with only one positively charged electron revolving about it. Other atones are progressively more complicated until we come to uranium, which has a relatively big center and 92 particles revolving around it.

Jan 1, 1935

By Yi Luo

Bolting the mine roof is one of the noisiest underground mining operations. The main contribution to the noise is the drilling of the roof bolt holes, especially drilling in hard rock. Previous research shows that the specific energy consumed in drilling bolt holes is inversely proportional to the bite depth (i.e., penetration per drill revolution). Less specific energy at a reasonably high bite depth means less energy is wasted in the drilling process for producing heat, bit wear and noise. Therefore, proper control of the drilling operation to achieve a reasonably higher bite depth can reduce drilling noise from its sources as a proactive noise control approach. In order to explore the feasibility and develop the proactive technology for reducing drilling noise, drilling tests have been conducted in laboratory settings. The preliminary results show that significant reduction in noise dose can be achieved by drilling in medium hard rock with uniaxial compressive strength of about 276 bars (4,000 psi) and at a reasonably high bite depth of about 4.6 mm/rev (0.18 in./rev). This paper presents the findings from laboratory experimental studies.

By D. C. Oliver

Paper written on project work carried out in partial fulfilment of B.Sc. (Eng.) (Metallurgy and Materials) degree Corrosion in exhaust systems can occur on both the interior and exterior surfaces. Chloride-containing de-icing salts on the roads in colder countries greatly increases the rate of corrosion on the exterior surfaces. This paper investigates the relative exterior corrosion resistance of three alloys?two ferritic stainless steels( AISI Types 409 and 441) and an aluminized mild steel. The exhaust system is split into two categories?the hot end and the cold end. A test for each of these ends was designed?the standard ASTM G85test was modified to create a simulated driving cycle. The cold end test samples were exposed to ten driving cycles, and the hot end test samples were exposed to five driving cycles. A driving cycle constitutes the car being started from cold, driven until the operating temperatures are reached, and switched off and allowed to cool. Pitting corrosion is the primary corrosion mechanism occurring at the cold end of the exhaust system. The aluminized mild steel was the most resistant alloy in this test, and Type 409 the least. However, once the protective aluminium layer degrades, corrosion will occur rapidly. At the hot end of the exhaust system, spalling of the surface oxide layer is the primary corrosion mechanism occurring. Type 441 was the most resistant in this test, and the aluminized mild steel the least resistant. Potentiodynamic tests were performed on the alloys?the results agreed with the results obtained in the exposure tests.

Jan 1, 2003

By A. A. Sadegh

A laboratory investigation was carried out on the characterization and beneficiation of sillimanite ore. Petrographic analysis indicated that the ore consisted of massive elongated sillimanite grains in a matrix of hematite, garnet, feldspar and silica. A procedure for estimating the percentage of sillimanite was developed using float-sink and magnetic-separation techniques. A liberation study was carried out to determine the level of size reduction required to achieve sufficient liberation while ensuring that gravity concentration techniques would be applicable. Laboratory testing was performed on the liberated ore to investigate the applicability of using wide-angle dense-medium cycloning to upgrade this ore. Initially, medium-only tests were carried out using various size distributions of magnetite and ferrosilicon as the dense-medium solids to evaluate the effects of operating conditions on medium segregation. Depending on the medium solids and operating conditions, either positive of negative differentials (difference between the relative densities of the underflow and overflow streams) were obtained. Based on these results, separation tests were performed to process nominal -1.2-mm sillimanite ore. The results indicated that sillimanite concentration could be obtained using a medium relative density that was much lower than would typically be used in a dense-medium cyclone separation.

Jan 1, 2007

By Andrew Bamber

Between the early 20th Century and the present, the production of mined copper ore has increased from tens of millions of tonnes per annum to several billion tonnes per annum, an unprecedented increase. Contemporaneously, the average grade of mined copper ore has declined from over 2% to approximately 0.5%. Again, in parallel, the price of copper has increased dramatically to reflect the increasing cost of extracting and beneficiating such large amounts of low-grade ore. Within the period the copper price however exhibited several periods of intense volatility, driven by interrelationships between demand and supply, themselves strongly driven by periodic industry developments in the fields of exploration, ore extraction, mineral processing and extractive metallurgy. It is notable that these periods of intense innovation exhibit a strong correlation to preceding periods of price, demand or production volatility. This paper examines key trends in each theme between 1900 and 2018 and draws strong conclusions as to the interrelationship between them. INTRODUCTION The production of copper metal has increased from around half a million tonnes per annum to over fifteen million tonnes per annum over the course of the 20th Century. Contemporaneously, the average grade of copper ore mined has declined from over 2% to approximately 0.5% copper by weight. As a result, the volume of Run-of-Mine (ROM) copper ore required has increased from around ten million tonnes per annum to over a five billion tonnes per annum over the period, an unprecedented increase. The adage is that demand drives supply, that prices rise in times of high demand and/or short supply, and that prices fall when supply catches up with demand. The market sellers in biblical times knew this well; mediaeval market sellers equally. Dutch tulip sellers in the 1600’s experienced both in extremis — much to their dismay — and the great industrialists and early capitalists of the industrial revolution knew this also. Mining recently went through a cycle where investors and producers both believed that the “old” rules did not apply any more and that the industry was in a “supercycle” where prices would continue to rise on the back of increasing demand. However, as the GFC of 2008–2011 showed, this was not to be. Another adage says that we constantly innovate to lower costs of production. Is this true? Do we only innovate to lower cost? Has the true cost of producing copper actually gone down over the century? Or are there other balancing forces at play? Herb Kellogg, in his Centenary address to the American Institute of Mining Engineers (now SME), categorized two types of innovation: ‘Bigger and Better’, and ‘New Process’ (Kellogg, 1970). ‘Bigger and Better’ allows increased production at presumably lower cost; ‘New Process’ supports the same result at presumably the same scale, but at significantly enhanced efficiencies and (therefore) lower cost. It is suggested that both types of innovation are constantly and interchangeably required to achieve the kind of scale-up, at achievable operating and capital cost that the industry has achieved over the period. What can be shown, over this last Century and a bit, is that supply and demand are indeed inextricably linked, price and demand are linked, but so are price and cost of production. And the innovation required to sustain that weaves in between them all, cost-effectively increasing production capacity or lowering the cost of production at the same throughput, and sometimes both.

Jan 1, 2019

By A. Cabañas

"In this paper, geostatistical techniques are applied to forecast the annual copper price in the short and medium terms (from one to five years ahead). These techniques allow the incorporation of monthly and multivariate information in the analysis and provide more accurate results than traditional approaches, especially as far as the one-year forecast is concerned.A second advantage of geostatistics stems from its ability to assess the uncertainty associated with the unknown future prices, thanks to estimation variances or confidence intervals, depending on the technique used. Such an assessment has a crucial importance in decision-making, from both macroeconomic and microeconomic points of view. IntroductionThe copper price traded in the London Metal Exchange is a relevant parameter for defining macroeconomic policies of producing countries like Chile. It is also a key factor for the mining companies, since fluctuations in the sell price affect the expected financial flows. Due to the amount of money involved in decision-making, it is necessary to have accurate forecasts of the future copper prices and to quantify the uncertainty associated with such prices.This paper focuses on the annual copper price estimation in the short and medium terms, i.e., from one to five years into the future. Henceforth, the word “estimation” will be used as a synonym of “forecast,” according to the geostatistical jargon (Matheron, 1989).Two main approaches, based either on statistics or econometrics, are currently used to forecast commodity prices, but both of them are not very accurate when applied to copper. First, the main methods are briefly reviewed, then the geostatistical formalism will be presented. So far, the latter approach hardly has been used to estimate commodity prices, although it may reconcile both statistics and econometrics via (1) the use of a stochastic approach and (2) the handling of ancillary variables related to the copper market. Another advantage of geostatistical techniques is the ability not only to forecast the copper price, but also to measure the uncertainty associated with it."

Jan 1, 2004

By W. I. Watson

The study considered all the institutional, resource reserve, technological, and economic factors relevant to the industry's present and future status, such as markets and marketing techniques, competition from other producers both domestic and foreign, federal and state regulations affecting the industry, quarrying and processing technologies, slate reserves and resources, and industry structure and economics. Constraints to the growth of the industry were assessed and scenarios proposed to solve some of the problems.

Jan 1, 1980