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By Elipio Pérez Coronado

El presente texto señala la aplicación del método de corte y relleno ascendente y sus resultados obtenidos a partir de la mecanización de cuatro de las operaciones unitarias realizadas en la mina Atacocha. La aplicación de este método buscó contrarrestar la inflación sostenida en la empresa y asi el 46% del costo de tajo del relleno convencional sea reemplazado por el relleno hidráulico.

Nov 8, 1982

By Romeo Calderón

El presente trabajo describe los trabajados realizados en la Compañía minera Huarón con el objetivo de realizar la explotación de vetas muy angostas y sinuosas de potencias inferiores a 1.20 m. de un modo seguro, eficiente y económico, donde fue necesario resolver el problema de carguío y acarreo en tajeos inferiores a 1.20 m. empleando equipo LHD de 0.80 m. de ancho, fabricado especialmente para este fin.

Nov 1, 1982

By Estanislao Dunin

Aunque el Perú disponga de un potencial carbonífero suficiente, no ha logrado posicionarse como principal productor de carbón. Dicha crisis es atribuida al fracaso gubernamental en el manejo de difusión y gestión del carbón peruano. Por ello, el presente texto analiza este problema a través de la tenencia de yacimientos de carbón, entidades nacionales relacionadas con el carbón y así buscar un adecuado fomento de la minería en el carbón.

Nov 1, 1982

By W. L. Wearly

El presente texto decribe el proceso de mecanización en la minería donde hay reducción del costo de mano de obra. Para elllo, se revisa la historia de este proceso desde el siglo XIX hasta la actualidadd (1970).

Sep 1, 1982

By N. Niyogi

La nacionalización de las minas de coque en 1971 y la toma de posesión de otras minas de la India originaron cambios en la industria minera del carbón. Por tal motivo, se estudiaron programas de racionalización para dirigir la industria minera hacia las tareas del futuro. En ese sentido, el presente texto señala los problemas de diseño e implementación del depósito de carbón de Jharia. Asimismo, se muestran las tendencias del desarrollo en el futuro utilizando el proyecto de la mina de carbón en Jharia.

May 1, 1982

By Richard J. Mainiero

The Bureau of Mines has developed a prototype nonincendive explosive rock-breaker charge that can be fired unconfined in underground bituminous coal mines without the danger of igniting a flammable atmosphere that might be present. At present, unconfined shooting in underground coal mines is prohibited, but there are situations where the use of such shots would yield an overall improvement in safety. The charge consists of l-1/2 lb of permissible water gel explosive in the form of a short cylinder 7 inches in diameter and 7/8 inches high, surrounded by a l/2-inch-thick layer of damp salt, and encased in latex rubber reinforced with cheese cloth. The latex rubber housing provides a charge package that is strong enough to resist rough handling yet is pliable enough to conform to an irregular stone surface. A charge of this shape was found to be more effective at breaking rock than charges with lined or unlined cavities. Incendivity tests in a gallery have shown that the prototype charge will not ignite a flammable methane-air atmosphere when fired. Rock- breaking tests made with limestone boulders indicate that the charge will satisfactorily break stone slabs weighing 1 to 2 tons, and that two or more charges might be effective for slabs weighing up to 10 tons. In cooperation with the Mine Safety and Health Administration (MSHA), a test protocol for the certification of these charges as "permissible" for use in flammable atmospheres is being developed.

Apr 1, 1982

By Katzer R. Klimpel, J. Sewell

Dr. Roussey Roussev The use of chemical additives on grinding is of significant importance considering the high energy consumption of grinding processes. My research indicates that the dispersant approach explains the effects, in this particular case of wet grinding. Further, the dispersant approach combined with torque measurements give the possibility of clarifying the mechanisms involved when using grinding aids. I find the conclusions derived from the data obtained to be correct and useful for grinding. In general, I agree with the explanations. However, I would like to discuss several additional points that I consider to be important, and in the same time to mention some of my own results from investigations similar to those presented in the study under discussion. The "bed volume concept" and the change of slurry viscosity explain adequately the data plotted on fig. 3, in conjunction with Figs. 1 and 2. However, the significant increase of the average torque in the case of 83% solid with XFS-4272 introduces the necessity of establishing the optimum of percent solid when dispersant is used. For example, the optimum percent of solid for different materials varies. One of the reasons is the material's mass density. On the other hand, it is necessary to determine the concentration of the chemical used. Because of this, it would be interesting to know how the cited concentration was selected. The supportive discussion and verification by Dr. Roussev, with results similar to that of the paper, is appreciated. I will try to answer the additional questions he has raised. To begin with, the mill was fitted with six lifters of approximately one-quarter inch height. There has been extensive lab and plant level work to understand downstream influences of using dispersants like XFS-4272*. In sulfide ore processing, which is the area in which most industrial scale testing has been performed with this approach, neutral to positive influences have been observed. For example, positive effects (e.g., increased recovery) have been noticed in flotation operations involving ores that have a tendency to produce excessive slimes upon grinding. (1) Also, the use of a dispersant has been shown to demonstrate a positive influence on classification by improving the sharpness of separation and preventing a decrease in d50 value that usually accompanies increasing flow rates to classifiers.(2) The biggest potential downstream problem is in thickening, which at the dosages involved, has not been a problem in plant scale usage. The commercial price of dispersants like XFS-4272 is quite variable depending on source, concentration, etc, but a typical cost of XFS-4272 to achieve a 10% increase in throughput in industrial mills has been between 20 and 35- US per ton of feed ore (1981).

Jan 12, 1982

By J. D. Miller, R. J. Smith

Earl C. Herkenhoff Publication of the article "The Flotation Behavior of Digested Asphalt Ridge Tar Sands" by R.J. Smith and J.D. Miller has confirmed and again spotlighted a most significant and important development in the field of tar sand and heavy oil mining. This is the ability to recover 95 % of the bitumen in dry tar sands by a hot water process. The initial investigation by Miller and Sepulveda in early 1978, "Separation of Bitumen from Dry Tar Sands," was the first blockbuter. It is disappointing that there has been so little scientific and industry ackowledgement that the authors laid to rest the long entrenched belief that the sand grains had to be "water wetted" for a hot water process to be applicable. Dr. Miller and his researchers at the University of Utah used slightly different mineral dressing terminology in describing their process but it is essentially the old, established technique of high solids attrition scrubbing at elevated temperatures with a conditioner or modifier, followed by dilution and froth flotation. Similar techniques were described in detail for other nonmetallic minerals in the mid-1940s by Stuart Falconer of American Cyanamid Co. The authors used a 15-minute "scrub" period (or in their terminology "digester step") at 73% solids and 95°C (203°F) in a 0.3 m solution of sodium carbonate -about 4 kg/t (8 lb per st) of tar sand. Flotation was at 10% solids. Obviously, the scrub is an expensive step with respect to energy input but the high recovery of bitumen appears to justify it. Two basic questions then arise: • What are the effects of shorter scrubbing time, lower temperature, and less sodium carbonate? • Would a two-stage approach be advantageous? That is, could you get the major proportion of the bitumen with a mild scrub and apply the high power and temperature only to the refractory portion? These variables should be evaluated. Apparently, all results were only for rougher flotation. What would the grade and recovery of bitumen be if multiple cleaner flotation steps were employed? We must concede that a 60-62% grade of bitumen leaves considerable room for upgrading. Finally, it should be noted by all executives who approve funds for heavy oil recovery schemes, most of which are variations of in-situ methods, that mining can yield a 95% recovery of bitumen. That is correct, 95%. Imagine what that does to the total barrels recovered from a heavy oil resource compared with the scrawny 30-35% maximum recovery we are getting now. The conclusion-let's mine heavy oil and tar sands. Reply by R.J. Smith and J.D. Miller We, too, share Mr. Herkenhoff s enthusiasm for the mining of tar sands-heavy oil and continue the development of related processing technology. Specifically, it will be noted that by appropriate control of bitumen viscosity in the feed (probably the most important variable for successful separation) the recovery can be accomplished at low digestion temperature and low addition of alkali. A 91 t/d (100 stpd) pilot plant based on our technology is now being operated by Enercor in Salt Lake City (Hatfield, Oblad, and Miller, 1982). In these same pilot facilities, rougher concentrates containing more than 80% bitumen on a dry basis are being produced from Asphalt Ridge Feed. However, the processing of certain other tar sands results in incomplete digestion of bitumen/sand aggregates as discussed elsewhere (Miller and Misra, 1982). Such undigested aggregates are shown in Fig. 1. In this regard, it is intended that a recycle stream will be installed in the pilot plant to provide for redigestion of middling products. Further details regarding surface chemistry aspects of this tar sand technology have recently been published (Misra, Aguilar, and Miller, 1981). References Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Recovery of Bitumen from Oil Wet Tar Sands," Processing, Second International Conference on Heavy Crude and Tar Sands, Caracas, Venezuela, Feb. 7-17. Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Processing of Oil-Wet Tar Sands," Symposium, Rocky Mountain Fuel Society, Salt Lake City, Utah, Feb. 18-19. Miller, J.D. and Misra, M. 1982, "Hot Water Process Development for Utah Tar Sands," Fuel Processing Technology, Vol. 6, No. 1, April, pp. 27-49. Misra, M., Aguilar, R., and Miller, J.D., 1981, "Surface Chemistry Features in the Hot Water Processing of Utah Tar Sand, Proceedings, "Symposium of Separation Science and Technology for Energy Applications," Gatlinburg, Tennessee, May 5-8.

Jan 11, 1982

By James M. Link

The first rule of mineral deposits always seems to be: the deposit is never close to the market. With gems and precious metals, this is not much of a problem. But with most of the mineral commodities used in today's world, transportation becomes a major part of the cost to the consumer. In Japan, for example, more than 60% of the cost of coal to the consumer may be attributed to transportation. The purpose of this article is to examine pipeline transportation, particularly mineral slurry pipelines, as a means of getting the mineral to market. Pipelines Today Regulated pipelines in the US totaled nearly 724 Mm (450,000 miles) in 1980 according to the Federal Energy Regulatory Commission (FERC). Worldwide, more than 210 Mm (125,000 miles) of new pipelines will start construction in 1982 at an estimated cost of more than $150 billion. According to the Bechtel Corp., the period between 1982 and 2000 will see major growth in pipelines of all kinds. In North America, major movements of crude oil from Alaska and synfuels from the Rocky Mountains will require the construction of nearly 16 Mm (10,000 miles) of new pipelines. Nearly 42 Mm (26,000 miles) of new gas transmission pipelines will be needed to tap both US and Canadian arctic gas fields and move the gas to major markets on both coasts. Other pipelines will be required to move additional quantities of natural gas from the Rocky Mountains to more populous regions. Bechtel says more than 24 Mm (15,000 miles) of slurry pipelines will be needed to transport coal from both eastern and western coal provinces to the Mississippi valley and coastal areas. In 1980, 125 companies delivered more than 1 km3 (6.5 billion bbl) of crude oil and 652 hm3 (4.1 billion bl) of products in the US. At the same time natural gas pipelines transported 498 km3 (17.6 trillion cu ft). The reported investment by these companies was nearly $20 billion at the end of 1980. Advantages of Pipeline Transportation The obvious success and vitality of the oil and gas pipeline industry is based, at least in part, on the fact that pipelines are a very efficient and low-cost method of transportation. This fact, coupled with the need for lower cost trans¬portation, has led to the marriage of oil and gas transmission technology and the bulk mineral solids transportation industry. The off-spring of this marriage is the mineral slurry pipeline. Slurry pipelines have a number of advantages over other transportation methods. One of these is the fact that they are buried-out-of-sight, out-of-mind. Second, they are relatively small users of labor because they lend themselves to automation and remote, or even computer control. Third, they offer an attractive economic alternative to other transportation systems. For example, for a 1000 km (621 miles) distance, rail costs of 1?/ km (1.7?/ton-mile) are about equivalent to slurry pipeline costs. But, as the distance increases, pipeline cost per t-km continues to drop while equivalent rail charges remain essentially insensitive to distance. Where existing rail, barge, or ocean ships are available, the cost of new construction associated with a slurry pipeline probably will render it noncompetitive. However, where new rail or other construction is needed, the cost of a slurry pipeline is very competitive. About three-fourths of the cost of a pipeline is in pipe, fittings, and construction. Nearly a fifth of the investment is in pump stations and the remainder is in right-of-way, surface facilities, utility acquisition, communication facilities, and other support areas. The fact that pipelines are capital intensive is, at the present time, a mixed blessing. For example, the delivered cost of coal in a hypothetical project doubles when the cost of money rises from 9% to 17.5% per year. The largest cost element for delivered coal in this example is in depreciation and finance charges. The next largest cost element is electricity to power the pumps, with labor making up the smallest increment of the delivered cost of coal. World Slurry Pipelines The idea of a slurry pipeline was probably first investigated in the latter 19th century, but the first ones were successfully built and operated in the US in the early 1900s. Today, they are fairly common worldwide. Table 1 shows a number of the world's slurry pipelines. An examination of these will further emphasize the fact that pipelines provide a cost competitive alternative where new construction of a transportation system is required. In each of the examples, the desired mineral commodity is located in a remote corner of the world, markets are at a great distance, value of the commodity is not great, and no other transport system is available.

Jan 10, 1982

By Christine M. Kammer

In 1852, six barrels of iron ore were loaded aboard the steamer Baltimore at Marquette, MI, after a trip by mule wagon from the nearby Cleveland Iron Mining Co. Shipped to Sault Ste. Marie, they were portaged around rapids and reloaded onto another ship for the final journey to the steel mills of Cleveland. In 1855, the same company-the predecessor of Cleveland-Cliffs Iron Co.-chartered the brigantine Columbia to carry the first iron-ore cargo through the newly opened Soo locks. In 1981, about 2,190 iron-ore shipments in the form of taconite pellets were transported by water from US Great Lakes-ports. The total volume during the 284-day shipping season was 63 Mt (62 million It). Counting Canadian ship¬ments, almost 76 Mt (75 million It) of iron ore were moved on the lakes last year. The five Great Lakes-Superior, Huron, Michigan, Erie, and Ontario-contain 20% of the world's fresh water. The area surrounding the lakes has 26% of the nation's populations, 47% of its steel production, and over 80% of the raw materials required to make steel. That figure includes 71% of the country's iron ore and 40% of its limestone. Only the availability of low-cost water transportation of raw materials has kept the heartland steel producers competitive. Iron ore shipped on the lakes originates in the Lake Superior district's Mesabi and Marquette iron ranges. Major mines and their principal partners are Cleveland-Cliffs Iron Co.'s Empire, Republic, and Tilden; Armco and Republic's Reserve Mining Co.; Oglebay Norton Co.'s Eveleth; Hanna Mining Co.'s National and Butler; Inland Steel Co.'s Minorca; Pickands Mather & Co.'s Erie and Hibbing, the latter operated in conjunction with Bethlehem Steel Corp.; and US Steel Corp.'s Minntac. Pelletized ore products at these facilities is shipped through seven principal ports on the upper lakes: Duluth, Two Harbors, Silver Bay, and Taconite Harbor, MN; Superior, WI, and Marquette, MI, on Lake Superior; and Escanaba, MI, on Lake Michigan. In 1981, tonnage volumes ranged from 13.3 Mt (13.1 million It) shipped from Duluth, to Marquette's total of 5.4 Mt (5.3 million It). The ore docks, with two exceptions, are operated by railroads, most of which are owned by mining companies. Table 1 illustrates US iron-ore shipments in 1981. In the lower lakes, ore is discharged at dock facilities close to the great steel-producing centers of Chicago, Detroit, Cleveland, Pittsburgh, and Buffalo. Between the mines and mills, lakes and connecting waterways form one of the country's most effective transportation systems. Each year, vessels on the Great Lakes transport about 181 Mt (200 million st) of bulk industrial and agricultural materials-a greater quantity at a lower cost than can be achieved by any other transportation mode. Major commodities in Great Lakes trade are iron ore, coal, grain, limestone, cement, sand, and petroleum products. About 125 US flag vessels serve this trade, among them 13 "1,000-

Jan 10, 1982

By Earle Faig

Earle Faig Along with other transportation modes, the barge industry will be greatly affected by trends in domestic coal production. Traditionally, coal has been one of the major commodities moved by barge. Now, because of events in the international energy market, coal is finally getting the recognition it deserves as a major component of the country's energy program. Perhaps even more significantly, a series of events has caused other countries to turn to the United States as a source of coal. Although the outlook for coal demand is optimistic, it will be greatly influenced by the ability of the transportation sector to handle the additional traffic. Because of its long experience in moving large quantities of coal, the barging industry is in an excellent position to capitalize on coal's increased popularity. A brief description of the barging industry should facilitate the discussion of coal as it relates to that industry. Barge companies operate on a river system that is over 40 Mm (25,000 miles) long. It includes the East and West Coasts and the Mississippi River System comprised by the Allegheny, Monongahela, Kanawha, Ohio, Illinois, Missouri, Tennessee, Cumberland, Arkansas, Warrior-Tombigbee, and Mobile Rivers, and some smaller tributaries. The Gulf Intracoastal Waterway stretching along the Gulf Coast from Brownsville, TX, to Apalachicola, FL, also is considered part of the inland waterway system. Approximately 1,800 companies operate on the inland river system and have a combined fleet of about 4,400 towboats and 28,000 barges. The fleet of towboats represents 4.8 GW (6.4 million hp) of power. The towboats comprising this fleet vary in size from a small harbor boat to a large line haul boat with 7.5 MW (10,000 hp) of power. The choice of size and power of the boat depends on a number of factors, including the size of the river and operational constraints, such as lock size, river-current rate, and water level. The choice also depends on the tow size. A single tow on a river capable of locking through 15 barges at a time handles up to almost 20 kt (22,000 st), whereas a tow on the lower Mississippi, which has no locks, can accommodate up to 41 kt (45,000 st) of cargo. Because the quality of coal is not typically damaged by exposure to the elements, it is usually moved in open hopper barges, although covered barges are used occasionally. The most frequently used size is the jumbo barge that measures 59 m (195 ft) long by 11 m (35 ft) wide by 4 m (12 ft) deep and can handle up to 1.4 kt (1,500 st) of coal. Advantages of Barge Transportation Barging offers several inherent advantages in transportation of bulk commodities like coal. First, barges can carry large quantities of product. A single jumbo hopper barge can handle 1.4 kt (1,500 st) of cargo while it takes 15 91-t (100-st) capacity rail cars or 57 trucks hauling 24 t (26 st) each to move an equivalent amount of cargo. Thus, barges can move more tonnage with less equipment than competing forms of transportation. Second, barging offers the most fuel efficient means of transportation. Less energy is required to push a load over water than to pull a similar load over land. The amount of pollution attributable to barge traffic is minimal because barges consume less fuel. Third, barging is an inexpensive form of transportation. The inland waterway industry transports about 12% of the nation's freight for about 2% of the total freight bill. This can be attributed to competition between the large number of companies on the river system and competition with other transportation modes. Fourth, barging is an environmentally safe method of transportation. Inland river routes expose fewer urban areas to hazardous substances than rail or truck. And barge spills occur less frequently than rail or truck spills. The industry does pose some disadvantages. The waterway system is constrained by the natural river network, so barges cannot travel on the most direct straight-line route. This means that barging is usually an incomplete form of transportation requiring interface with truck or rail. The industry's market is limited to those geographical areas that are located on or near the rivers. In addition, it is a time-consuming transportation mode, making it impractical for many types of commodities.

Jan 10, 1982

By Dale S. Hursh, William A. Brooks

Introduction US dependence on external energy sources is dangerous because of unstable political situations existing in key energy exporting countries. So, recent national energy policies call for increased reliance on domestic energy sources. Coal ranks as the most feasible domestic energy source due to its abundant reserves and continental distribution. But to efficiently extract these coal reserves, huge sums of capital funds are needed. Due to the depressed economy, lenders of capital funds are forced to be more stringent with loan applications. This results in fewer loans granted. In many cases, it is uncertain if funding can be obtained. Furthermore, the greatest level of domestic mine financing is expected to be in the coal sector. Demand for capital in the domestic coal industry is anticipated to increase 80% by 1990. The Chase Manhattan Bank in New York warns that these future needs cannot be met by the present capital markets. This article analyzes the current and expected situations of the capital markets available to the domestic coal industry, including: • current and expected future types of financing used in the domestic coal industry; • problems the domestic coal industry may encounter as it seeks capital; and • the future availability of capital funds as concluded from analysis of the first two items. Background Information Regardless of industry, all projects or ventures can be divided into four basic stages: generation; evaluation; selection; and execution. Within the mining industry, one can break down these stages to draw a clear picture of mine development, as shown in Fig. 1. Each successive stage has a corresponding risk level. This risk level defines the type of financing available to the mine operator. Mining Venture Risks A coal mining venture can be characterized by its unique blend of technical and financial risk. As the mine moves through different development stages, varying proportions of each of these risks are encountered. It is these risks that the lender evaluates to determine project suitability. For a coal mining venture, the major complexities generally occur with the technical risk. These include: • quantifying the coal reserves: • assessing the feasibility of the mining method; and • evaluating the design of the wash plant. The reserve risk is gauged by the amount of measured, mineable, and saleable reserves. The greater the latter amounts, the lower the risk. Secure title to the reserves plus title for any surface areas required are also of concern to the banker. Feasibility of the mining method and evaluation of the wash plant design should verify that the project can be completed according to the engineered spec-

Jan 9, 1982

By Marvin V. Damm, Lloyd C. Venburg, Dan Sokol

Analytical and computer models are used to evaluate information obtained from existing data and investigation programs so mine water control systems can be designed and developed. These models allow the geohydrologist to predict the amount of groundwater inflow and the impact of dewatering and stream diversion on the hydrologic regime, and to determine the schedule and equipment needed for mine dewatering. This article describes uses of the model and the essential components necessary to construct an effective and practical one. Hydrologic models are constructed to determine the extent that mining activities will affect the ground water and surface water hydrologic regime. These models range from basic analytical, mathematical models to the more sophisticated finite difference and finite element groundwater models. Many factors determine the degree of sophistication, including the mining stage, the complexity of the hydrologic regime, the mining process, and regulatory requirements. Model Uses The geohydrologist and engineer construct models so the entire ground and surface water handling and supply system can be integrated and optimized. These models can provide the following data: • Information for water balance studies-the entire hydrologic regime for the area, including precipitation, transpiration, evaporation, infiltration, runoff, and the effect of geologic features. • Data on seepage rates during mining. • Information to design the depressurization and dewatering system, including water well spacing, location of sumping systems, need for grout curtains, and possible horizontal drain and underdrain locations. • Data needed to schedule dewatering and mining operations. • Prediction of initial and long-term impacts of mining and dewatering, including local and areal drawdowns, effects on existing wells, and modifications to the surface-subsurface hydrologic regime. Potentiometric surface maps and hydrographs can be prepared from these data. • Prediction of the effect of discharge from the water control system on the surface hydrology and data input to design systems for water discharge, storage, recharge, or reinjection. The results of a computer study that illustrates the effect of dewatering and reinjection into an aquifer to confine the cone of depression are shown on the accompanying figure. • Information to forecast potentiometric surface recovery after mining ceases. The accompanying figure shows the pumping and reinjection rates in a program that is adequate to dewater a mine and permit the recovery of potentiometric levels to approximate premining levels after mining ceases. • Documentation and design information for monitoring systems to be installed during all mining phases. • Water quality predictions and geochemical changes, including the possibility of brackish or saline water intrusion because of extensive dewatering or depressurization operations. • Documentation and data for acquiring permits from regulatory agencies. Model Input Program For any model to be effective, detailed hydrologic and geologic data must be gathered from a review of existing information and from an investigative program. These data should cover entire model limits. Data updating, revising, and refining should occur as new information is received from the investigation and monitoring programs, and from the mining operation as it progresses through the pre-mining, mining, post-mining, and reclamation

Jan 8, 1982

By F. G. Crack, R. V. Ramani, R. L. Frantz

Management for mine construction and development differs from that needed for routine mine production and maintenance. An integrated approach to managing mine development projects must consider contract documents; management organization of a project; the project manager's role and the field supervisor's responsibility; and the use of scientific techniques for planning, scheduling, executing, and controlling projects. Professional project management encompasses the following: • Preparing contract documents that establish technical and financial schedules, and detail the responsibility for the physical work commitment. • Developing a project's organizational structure, to clearly define the roles of the project manager and the field supervisors. • Establishing project management and field supervisor relationships, to avoid ambiguity in assigning responsibility and to ensure desired project progress. • Using management science techniques, particularly networking techniques such as the critical path method for planning scheduling, executing, and controlling projects. Project Versus Production Management Project management differs from routine production management in the following ways: • Uniqueness: A project is unique. Production operations tend to be repetitive. The magnitude of one-time capital expenditures for many facets of mine development warrant special skills and attention. These professional project development skills must already be available by prior experience in the management team. • Personnel: In projects, personnel are usually assigned on a specialty basis and frequently change with the project activity. On the other hand, production personnel work together, more or less permanently. • Management Structure: In a project there may be several staff-line relationships that are not clearly defined and change with changing project activities. In a production situation, the lines of communication and authority are usually well defined. • Time Frame: A difference between project and routine production management is that project activities have comparatively less well defined durations and often tend to be relatively short-term. Production usually has both long-term and short-term plans and well defined long-term and shor-term goals. In project management, formal, critical, short-term reviews are frequently required. In production management, five year plans can be formally adjusted quarterly and annually. Short-term weekly or daily reviews can be informal. • Response to Delays: Delays in a development project may occur without anyone being immediately aware of their existence or suspecting the magnitude of consequence. In contrast, any delays in the production process can be easily identified from prior results comparison. Additionally, the response is quick, usually in a set routine. This can be traced back to the management structure and personnel. • Control Techniques: Measurements of project progress for control are not easily made due to the variety of activities that are carried on at the same time by different work groups. The yard-sticks of performance measurement for individual activities, let alone for the total project, are not easily established. However, due to the difficulty in detecting project delays, a workable control system is vitally important to a project manager. To apply a scientific project control technique such as "management by exception" requires specific planning and monitoring from the project manager for each activity in the project. Production and productivity are quick and effective yard-sticks of measuring performance in a routine operation. Control techniques required in production management usually revolve around these measures. Construction Contracts The construction contract is an important document that establishes contract scope, technical and financial details of the work, and achievement deadlines. It may also serve as the contract document to pay for work done and to verify field progress with planned progress. In practice, it is a good idea to develop a job-specific contract. This whole area is replete with legal precedence and procedures, and it is not the intent here to deal with the intricacies of establishing a contract document. But it is necessary to have an understanding of major contract types. Construction contracts are extremely important legal documents. They may vary in work specifications and enforcement of the provisions. Due to their nature, they must be composed with legal help and will take some time to compile. Even with all the precautions and provisions, it is not uncommon to find owner and contractor disagreeing. Therefore, it is important to include a way to resolve any difference quickly and to incorporate aspects of the contract as part of an overall management control tool for efficient project management.

Jan 7, 1982

By Marianne Snedeker

In January we published a questionnaire asking about the content of MINING ENGINEERING and about your interests. At the same time we hired an outside firm, READEX Inc., of St. Paul, MN, to send the same questionnaire to a sampling of about 1000 US members, selected on an nth name basis, so that we could have some preliminary numbers for the Annual Meeting in February. READEX sent us the final results of its survey in March. At that time, 525 responses of the 992 surveys sent out had been returned, for a 52.9% response, an extraordinarily high return for a low-key (no incentive for return) random sampling. On May 7, we cut off on tabulating returns from the magazine so that we could report the results to you in this issue. At that time, we had 594 questionnaires returned. Our 594 and READEX's 525 (we have assumed that relatively few people returned both), represent a 1119 return, about 3.5% of the approximately 32,000 who received the January issue of ME. About ME Through responses to the questionnaire, we were hoping to learn more about you, your interests, and how the magazine could better serve you. Those of you who responded, told us something positive-you look at or read the magazine. Of the 1119 respondents, 1068 or 95.4% indicated that they had read or looked through the November and/or December issues. Those of you who refer to the magazine once are 466 or 42.6%. Those of you who refer to the magazine two or three times are 559 or 51.1%. Those of you who refer to the magazine four or more times are 68 or 6.2%. How much time do you spend reading the magazine? Of those responding to this question: 186 spent up to 1/2 hr 16.6% 590 spent up to 1 hr 52.7% 292 spent 1-2 hr 26.1% 51 spent more than 2 hr 4.6% In an informal survey among our staff, we determined that most people spend 1/2 to 1 hr reading magazines to which they subscribe at home. Does that match your experience? Many of you, 764 or 69.4%, clip your magazine for further reference. Also, many of you, 513 or 64.2%, do not pass your copy on to another reader, indicating perhaps that you are clipping it or receiving the magazine at home. Those magazines that are passed on reach: 2 people - 159 - 20.0% 3-5 people - 95 - 11.9% 5 or more - 31 - 3.9% Answers to what portions of the magazine you find useful indicated that the top three were Industry News, feature articles, and Technical Papers; see Table 1. The "other" category included advertising-display, classified, and employment-Coming Events, product information, Washington Survey, new books, the reader service card, and Engineering Fundamentals. Of those responding, 797 or 75.3% indicated a preference for dual notation of SI (metric) with English units; 228 or 21.5% preferred all SI units; while 34 or 3.2% preferred SI with dual notation of other metric units. Based on the preliminary numbers reported by READEX for this question, the MINING ENGINEERING Committee in February voted to return to a policy of dual notation. This decision has been implemented. We asked for your appraisal of the technical level of the magazine. Of those responding, 78 or 7.4% indicated it is too technical, 147 or 13.8% indicated it is not technical enough, and 836 or 78.8% judged it to have the correct tech¬nical level. In response to the question about whether you like to read an occasional feature that is not technically oriented, 32 said no, but an overwhelming 97% (1024) said yes. Of the specific topics, 785 like history, 558 political or socioeconomic articles, 440 career development, and 373 human interest. Other topics suggested included new disciplines, mineral resources of the world by

Jan 6, 1982

By William L. Young

There is an old saying in Canada: "Mines are made as much as discovered." What follows is Young's perception of his experience developing and financing the Cochrane Hill gold mine project. In 1974, I came back from rutile and zircon exploration and mining in Australia. I became interested in a copper, lead, and zinc project in the Bathurst District, New Brunswick. Much field work had already been done but I was convinced that a reinterpretation of the geophysical work left room to enlarge on the known mineralization. So, with my own money I put a property deal together, found an underwriter willing to raise $100,000, and had a lawyer produce a prospectus. The prospectus was ultimately accepted for filing by the Ontario Securities Commission and I acquired funding and began work. It did not take many drill holes to determine that the interpretation was not geologically valid. However, while drilling was going on, geophysical and geochemical explorations indicated interesting anomalous zones elsewhere on the property. But by now the base metal market climate had soured and the $50,000 I had left was not enough to evaluate the new results. So I decided to farm out the property. A data folio was produced and the property was optioned to a major mining company, with Northumberland Mines Ltd. retaining a 20% free, carried interest. By 1976, the market for junior issues was so bad no under¬writer would even talk to a geologist and I still had the $50,000 in the bank and was looking for something to initiate. A Project That Went Nowhere Market research indicated that the Toronto area imported fine calcium carbonate fillers from Georgia, Alabama, and Vermont. I was aware of the specs and the fact that there is a large marble belt in Eastern Ontario. After some prospecting, I found an interesting deposit. The product was slightly high in silica and low on brightness. Research work eliminated the silica and corrected the brightness. So, with insufficient money we launched a feasibility study. This included diamond drilling, bulk sampling, special fine grinding and air classification tests, and an in-depth market survey. Our product was as good or better than those on the market. Our advantage was that delivery could be made by a two-hour truck haul to the customer. The present system of rail delivery had many problems, especially in winter. Despite everything looking rosy, we ran into a stone wall. The underwriters were singularly unimpressed because the public saw little glamour in a substance most people had never heard of. The issue would have been difficult-if not impossible-to sell. Banks and government agencies took the position that if we could get long term take-or-pay contracts then they would lend the required capital. None of the suppliers, however, would even consider a contract until production had begun and they could evaluate the production material. It was a classic "catch 22" situation. I have gone into this in some detail to show how tough the industrial mineral market can be. We eventually optioned this calcium carbonate property to a major corporation. The option agreement would give us a free, carried 15% and the right to buy up to 40% for contributing 25% of the production costs. But the experience left my company in poor financial shape. To survive, I think the entrepreneur-geologist must always have at least one project in reserve, an emergency plan. I had been searching out a new project to work on, after the calcium carbonate option was wrapped up. It was gold. Gold intrigued me and I knew quite a bit about Nova Scotian gold. I felt that with any rise in price, many of the former high-grade gold mines would have interesting potential for the larger, low grade portions of the deposits. That is how I happened on Cochrane Hill, where much work had been done in the early 1970s when gold as $4.82/g ($150/ oz). This time my timing was good. No sooner had Northumberland signed an option agreement than gold prices started to rise. In six months, they went to $27.331g ($850/oz). Even so, financing gold prospects in early 1980 was still not easy. It had been years since gold financing had been undertaken. A whole new generation of investors, with no knowledge of gold mining, had grown up. So, with accounting and legal council, we decided on a semiprivate "seed money" offering. Under the new Ontario Securities Act, this was a new-and partly tax sheltered-concept. At the time, it was very innovative.

Jan 6, 1982

By I. S. Parrish

This article offers one of the infrequent looks at Chinese mining. It includes a brief review by Parrish of a tungsten symposium held there and his comments on and impressions of the mines he visited. In early Oct. 1981, a Symposium on the Geology of Tungsten was held in the Peoples Republic of China. There were approximately 100 participants. Half of them were Chinese. The remainder included representatives of the United Nations, geologists from other nations in Southeast Asia, and 10 invited specialists from other countries. The invited guests included K.F.G. Hosking of the Camborne School of Mines, United Kingdom; C.S. Hutchinson of the University of Malaysia; K. Mattson of LKAB Int. AB, Sweden; T. Kwak of Latrobe University, Australia; K. Sato and S. Ishihara of the Geological Survey of Japan; M. Clarke of the Department of Mineral Resources, Indonesia; P. Bateman of the US Geological Survey; and the author. R. Horsnail of Amax was also invited but was unable to attend because of delayed visa clearance. The meeting was noteworthy because the Chinese were presenting more than half the papers. In addition, following the formal session, everyone was taken to the famed Jiangxi tungsten district and toured four mines there. Organization and Background The idea for a symposium on tungsten geology was brought up in late 1979 during a visit to China by the Economic and Social Commission for Asia and the Pacific (ESCAP) and, in particular, by members of the Regional Mineral Resources Development Centre (RMRDC) of the United Nations. Discussions continued and in the spring of 1981 invitations were sent to selected geologists throughout the world. China's Ministry of Geology handled arrangements, scheduling, and logistics. Travel to China and all correspondence before the symposium were coordinated by the Bandung, Indonesia Bureau of RMRDC. All costs in China were met by the Peoples Republic of China. Airfares and "per diem" enroute for participants were paid by respective governments, sponsors, or individuals. On Oct. 10, visiting participants entered China from Hong Kong. The author and a few others traveled by train to Guangzhou (Canton). Most of the group flew in the next day. The entire group was then taken to Nanchang, traveling by sleeper train and arriving on Oct. 11. The symposium group stayed at the Kiangsi Hotel, where the meetings were held. Meetings Oct. 11 was a day of orientation and rest. The group was taken to an art museum and treated to a Chinese opera movie. The formal meetings began on Monday, Oct. 12. Simultaneous translations aided presentations, though more than half the Chinese speakers delivered their talks in English. The acoustics and sound system were excellent, and the Chinese provided 35-mm and overhead projectors. There was no screen, however, and the yellow, painted wall that was used detracted from projection clarity. In general, the Chinese papers were detailed, thoughtful, and professional. Some, naturally, were stronger than others. Taking them as a unit, one derives the following sequence to the Chinese approach to tungsten exploration: (1) Geologic investigations with mapping at a scale of 1:200,000 accompanied by only minor geochemical or geophysical work. (2) Geophysical investigation with regional gravity and magnetic surveys directed toward identifying deep, tectonic systems and seeking granites in thick, crustal environments. (3) Geochemical sampling in-

Jan 6, 1982

By Donald E. Ralston, V. Rajaram, Michael N. Greeley, John W. Peters, Terry J. Laverty, F. S. Kendorski, Peter G. Chamberlain, J. Brent Hiskey, William C. Larson

Preliminary figures from the US Mine Safety and Health Administration show 801 underground metal mines and 490 surface metal mines, at the end of 1981, up from 663 and 383, respectively, in 1980. Preliminary MASH figures also show 207 underground nonmetal mines and 1070 surface nonmetal mines at the end of 1981, compared with 167 and 1092, respectively, last year. In addition, preliminary MASH figures show there were 14,676 mineral extraction operations on the surface and 3845 underground at the end of 1981, versus 14,951 and 3675, respectively, for last year. The number of mines, then, in three of four categories increased significantly, while having a lower net total of just 2% in the other category. And the number of underground extraction operations increased nearly 5% for the year, while surface operations were down less than 2%. But despite operations totals that mostly held their own or showed significant increases, it was a tough year for the nation's mining industry. The nonferrous segment of the industry had a bad year and 1982 may be no better, according to Business Week (Jan. 11, 1982), which adds that a turnaround is impossible unless the general economy recovers. Even then, with diminishing markets and overcapacity plaguing its products, the mining industry's condition "will be far from robust," the magazine says. The basic problem is that nonferrous metals-aluminum, copper, lead, molybdenum, nickel, and zinc-are tied to the most troubled sectors of the US economy. As recently as 1979, for example, more than 40% of all aluminum shipments went to the construction and transportation industries. Last year, these markets were down to 35% of aluminum shipments. And molybdenum sales to steel producers dropped by nearly 15% last year. Moreover, nonferrous products ended 1981 at disastrously low prices. Molybdenum oxide sold at $8.77/kg ($3.98/lb), half its $17.63/kg ($8/lb) price earlier in 1981 and aluminum was listed at $1.08/kg ($0.49/lb), compared with $1.54/kg ($0.70/lb) a year earlier. The Comex price of copper was $1.54/ kg ($0.70/lb), down from $3.11/kg ($1.41/lb) in early 1980, in real terms the worst copper price in 30 years. Lower prices led operators to cut their output and increase layoffs, shut down mines, and defer capital spending projects. In December, Duval Corp., a Pennzoil Co. subsidiary, shut all four of its US copper mines until March. Aluminum Co. of America had laid off 7.3% of its work force, shut nine of its 38 smelting lines, and entered 1982 operating at only 68% of capacity. Inco Ltd., the Free World's largest nickel producer, lost money in 1981, an estimated $11 million, for the first time since 1932. And, like Falconbridge Nickel Mines and other major nickel producers, had cut back on nickel production and was operating at only 63% of capacity (Forbes, Feb. 15, 1982). Amax, the country's largest molybdenum producer, had cut production by 20%. And Hanna Mining Co. sold lead for $5.07/kg ($2.30/lb), about $1.54/kg ($0.70/lb) below what it cost to produce. Another problem is that copper companies in the next few years must come to terms with problems of aging smelters. Some companies are simply closing them. In 1980, Anaconda closed its 75-year-old Butte, MT, smelter and is shipping concentrates to Japan, rather than modifying the smelter to meet environmental requirements. And oth Phelps Dodge Corp. and Asarco Inc. have antiquated smelters on which they will have to make decisions. The most troubled metal in 1982, Business Week said, will be molybdenum, with no real recovery in sight until the mid-1980s. High molybdenum prices in the late 1970s, caused in part by shortages, triggered overexpansion that will take years for the US market to soak up. On a more upbeat note, 1981 mergers might help stabilize the industry by providing funds for mining companies. Standard Oil Co. (Ohio) said it plans to spend $7 billion on Kennecott during the next 10 years for modernization and expansion. And Atlantic Richfield Co. said it will spend $500 million on Anaconda Copper Co. during the next five years. Another positive note was sounded by T. H. Adams of the United Banks of Colorado Inc. He said he expects the mining industry to experience moderate growth in 1982, led by "interest rate sensitive" demand from energy, electronics, and defense markets. And mining will be helped by "weak, but improved" construction and auto markets. The mining industry will be operating in an economy stronger than 1981, but still relatively sluggish by postwar standards, Adams predicted. Iron Ore Estimated US iron ore production in 1981 was 75.2 Mt (74 million long tons), up 6% from 70.7 Mt (69.6 million long tons) in 1980, though down from the 87.1 Mt (85.7 million long tons) produced in 1979. The mine value of usable iron produced from domestic mines was estimated at $3 billion. US iron ore was produced by 28 companies operating 35 mines, 26 concentration plants, and 16 pelletizing plants. The mines included 34 open pits and one underground mine. Byproduct ore recovered from copper- and titanium-mining operations accounted for less than 1% of total iron ore production. Fifteen mines operated by nine companies accounted for 94% of total

Jan 5, 1982

By Thomas F. Stinson

Energy-producing states see severance taxes as attractive sources of increased revenues for otherwise tight budgets. Consumers in energy-poor states, however, protest that current rates are excessive and have moved to obtain a reduction. The US Supreme Court heard two cases questioning such taxes during its 1981 term, and Congress, in each of its last two sessions, has seriously considered measures placing a ceiling on severance tax rates. Although discussions usually focus on coal severance taxes levied by Montana and Wyoming, ramifications of changes in national policy are much larger, potentially affecting mineral taxes in all states. Severance taxes yield substantial revenues in some states, as illustrated in the accompanying table. In fiscal 1980, Texas collected more than $1.5 billion from such taxes, while Louisiana, Alaska, and Oklahoma collected $525 million, $507 million, and $436 million, respectively. Oil and natural gas production were the major items taxed. While the table shows only the 10 states with the largest severance tax collections, a total of 17 states had severance tax receipts exceeding $10 million in 1980. The enormous increases in severance tax revenue between 1970 and 1980 can be seen from the table by comparing columns A and B. For the 10 states shown, revenues increased from $650 million to $3.8 billion during that period, due to a combination of higher prices, increased production, and new or increased taxes. In most states, increases in prices and production were more evident than higher tax rates. Although the revenue increase is impressive, it understates the extent of changes occurring during the past decade. Since tax collections are shown for fiscal 1980, the full impact of the decontrol of domestic oil prices is not evident. Also, taxes on natural gas reflect controlled prices. When full de-control of natural gas occurs, significantly higher revenues can be expected in gas-producing states, even if tax rates, production, and world prices remain constant. These increases in severance tax revenues, coupled with further increases expected to accompany natural gas decontrol, have produced fears that a substantial transfer of income is taking place from residents of energy-poor states to those living in energy-rich areas. Others worry that increased severance tax revenues will be used to substitute for a substantial portion of state taxes that would have otherwise been collected from firms and individuals. The resulting improvements in tax climate, it is thought, may encourage firms and workers to migrate to energy-producing states. While these issues are often portrayed as pitting energy have-nots against the haves, such is not entirely the case. Much of the original impetus for limits on coal taxes came from Texas residents, the state collecting the most severance tax revenue. One way of gaining perspective on these concerns is by examining severance taxes per capita and as a percent of state tax collections (see columns C and D in the table). When this is done, Alaska, where 1980 taxes on oil and gas production totaled more than $1300 per capita (and 35% of all state tax collections), stands out as a special case. There, the state was able to eliminate some individual taxes, place revenues in a permanent trust fund, and consider offering a rebate of some previous income

Jan 4, 1982

Traditional loading systems have relied for many years on wheel and track loaders, power shovels, conveyor belts, and more recently, hydraulic front shovels. Each has certain advantages and disadvantages, depending largely on job conditions. Hydraulic backhoes were introduced several years ago as still another truck loading option. At first, buckets were small and backhoe use was limited to small earthmoving projects. Now, as backhoes are equipped with shorter sticks and bigger buckets to move larger quantities of earth. The "mass excavation" concept offers an excellent truck loading option in many situations. System Development and Advantages Mass excavation was first used successfully by contractors in site development and highway construction, loading both on-highway and off-highway trucks. Operators were able to take advantage of the excavator's ability to work in poor underfoot conditions and dig in tough materials. The technique was first applied to mining in the kaolin mines of central Georgia. Kaolin, one of the world's most abundant minerals, is used to make paper, paint, ceramics, rubber, plastics, and many other products. Since kaolin clay is slippery when wet, load-out with wheel loaders is very inefficient. Also, kaolin is found in very spotty deposits due to the weathering process involved in its formation. Consequently, draglines are also impractical for kaolin mining since they don't have the mobility to move between clay deposits. In response to these mining conditions and kaolin characteristics, mines began using excavators in mass excavation as early as 1976. They have developed a system that takes advantage of the excavator's •high penetration and breakout force in tight materials; •fast-cycling hydraulics; •ability to work in poor underfoot conditions; and •mobility in comparison to draglines. This loading method has been successful in Georgia's kaolin mines and now can be applied to other mining operations as well. The excavator's ability to carefully dig spotty ore deposits is an asset at uranium mining operations. Any mine can take ad-

Jan 3, 1982