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By Roger J. Goodman

"Major industrial restructuring, which started to manifest itself in the mature economies of the Western World and Japan in the 1970s, will accelerate in the 1980s and 1990s. Conventional heavy manufacturing industries will continue to lose ground to lighter processing/assembly operations and the new wave of high technology, information and service sectors. The decline in heavy manufacturing has severely impacted on the steel industries of Western Europe, the U.S.A . and Japan.World trade in metallurgical coal has shifted correspondingly, with declining demand in the mature developed countries being only partially offset by large increases in the steel intensity of the newly-industrialized countries (NICs) of the Far East, Latin America and, to a more limited extent, the Middle East and Africa. These trends will be accentuated in future years with direct implications for the distribution of metallurgical coal trade. This paper discusses, in quantitative terms, such changes in the 1980s and 1990s, and examines the implications for, and impacts on, Canadian metallurgical coal exporters.IntroductionThe twenty-year period from the early 1950 s to the early 1970s was characterized by inexorable growth in consumer demand and industrial expansion in most of the advanced countries of the western world. Long- term forecasting during this period typically used linear extrapolation techniques which , despite their simplicity, invariably ended up predicting future demand and production level s with uncanny accuracy. Times have changed!The last decade has been characterized by a n abysmal failure of our economies to respond to simple long-term, linear growth patterns. We appear to have entered a new world in transition, where we can observe a wave of dying or sunset industries reluctantly being submerged by a wave of emerging or sunrise industries.This paper is aimed a t examining the evidence for long-term industrial restructuring trend s. For want of a better word, these so -called, megatrends are then used to predict future demand level s and spatial distribution of steel development and , hence, metallurgical coal trade. It is tempting to correlate the decline in economic activity in the western world with the first Organization of Petroleum Exporting Countries' (OPEC) crisis of 1973. This crisis was probably no more than the straw that broke the camel's back, as the megatrends and embryo s of major industrial restructuring were already evident. Today these megatrends are merely more apparent and transparent than they were ten years ago.While the concept of industrial restructuring is the new economic buzz word, the process was at work, to a lesser degree even throughout the period of strong economic growth of the post-Second World War boom. Many people still remain convinced that our present-day sluggish economy is just part o f the typical , though rather more prolonged, recessionary cycle. Yet, we have always been part of a dynamic economic system and industry throughout history has been the subject of a continuous process of evolution, restructuring and reconstitution . Now the time is ripe to examine the evidence for such restructuring in order to develop coherent policies of adjustment in this transition from one industrial regime to another."

Jan 1, 1985

By D. E. M. Plaumann

"The wet grinding of asbestos has attracted the attention of engineers for many years as a means of improving fibre liberation from the ore. Today, added impetus for wet grinding has resulted from a need to minimize worker exposure to asbestos dust in conventional dry mills using air, as well as a need to provide a cleaner, technically superior fibre for use by product manufacturers. However , high viscosities of asbestos slurries create transport and grinding difficulties which have been a factor impeding use of a wet grinding process.Laboratory evaluation of reagents to reduce viscosities of asbestos slurries found that one reagent, XFS-4272.00, reduced the viscosity of a 35% (by weight) slurry by 75%. The impact of XFS-4272.00 on actual grinding parameters were evaluated using a pilot plant rod mill. Slurries containing 78% solids and XFS-4272.00 were successfully milled and asbestos fibres from that milling compared favourably in liberation and relative surface area to asbestos fibres obtained from milling a 4% slurry without additives.IntroductionAlthough the use of asbestos has been declining over the last few years, the large deposits of chrysotile in eastern Canada (Quebec in particular) remain very important. Asbestos production in Canada stands ninth in volume for mineral production with over 740 000 tonnes produced in 1985. Of this quantity, 722000 tonnes were exported with a value of $446 million . Canada is second in world production of asbestos behind the U.S.S.R ."

Jan 1, 1988

By R. M. Bustin

"Extensive deposits of tectonically sheared coal of the Mist Mountain Formation occur in the south eastern Canadian Cordillera. The quality of the coal varies markedly; it is commonly partially oxidized and poor washability characteristics.Oxidation of the sheared coal has been promoted by its fine grain-size and by fractures in adjacent rocks which have facilitated penetration of atmospheric oxygen and circulation of oxygenated waters. Oxidation has resulted in a loss of coking power, a decrease in vitrinite reflectance, and an Increase In oxygen and decrease in carbon content.The relatively low clean coal yields of the sheared coal are primarily the result of the greater volume of mineral matter present, which in turn reflects both the greater susceptibility to shearing of coal with abundant rock partings and the shearing and dissemination throughout the coal of formerly discrete rock partings. The high ash content of some sheared coal seams may be artificial, resulting from the difficulty in distinguishing and separating sheared roof rock and floor strata from the coal seam during mining. There is little variation between the quality of the washed sheared and unsheared coal, with the exception of the somewhat higher ash content of the clean sheared coal compared to clean unsheared coal. This poorer separation of the ash from the organic fraction of the sheared coal is considered to be a product of the large amount of fines present as well as the local formation of aggregates of organic material and ash resulting from plastic flowage of the vitrite and clarite during shearing.IntroductionIn the southeastern Canadian Cordillera, coal seams of the Lower Cretaceous Mist Mountain Formation (Gibson, 1979 were in part sheared and comminuted during Late Cretaceous and Tertiary tectonism . Extensive deposits of sheared coal exist, and even in areas of mild deformation the coal may be locally sheared (Bustin, 1979). The quality of the sheared coal varies notably; it is commonly oxidized even far from the present weathering horizon, and locally has a disproportionately large amount of ash and poor washability characteristics even far from the present weathering horizon and locally has a disproportionately large amount of ash and poor washability characteristics."

Jan 1, 1982

By H. Utsunomiya, Mehdi Sanjari, Abu Kabir, Steve Yue, Jing Su, L. Kestens, In-ho Jung

The microstructure and texture evolution of low temperature rolled AZ31 magnesium alloy during annealing were investigated. The specimens were rolled at the temperature of 100? at a high rolling speed of 1000m/min with a reduction of 30% in one pass. Annealing was conducted at various temperatures ranging from 200? to 500? for different time. To study the effect of fast speed rolling, the same annealing procedures have been applied for the specimens rolled at a significantly lower speed of 15m/min. The microstructure was characterized by optical microscopy and scanning electron microscopy, while the texture was analyzed by X-ray diffraction analysis and electron backscattered diffraction analysis. Texture weakening occurred during annealing at both fast and slow rolling speeds. However, at the same annealing condition, fast rolled specimens always had weaker intensity of basal texture than slow rolled ones.

Jan 1, 2014

"Technological innovation is an extremely complex activity. The author presents his interpretation of innovation and the innovative process. He reviews the strategy used by participants in coal mining innovation in the past and discusses changes required to meet the challenges of the future.Introduction if an industry is to be successful and viable in today's world, the companies active within the industry must remain close to the frontiers of knowledge. The coal mining industry is no exception. Technological problems facing the coal mining industry are basically economic and social. Economic problems are those concerned with the long-term growth and profitability and social problems, with the health and safety of the mine worker and the impact of the mining operation on the environment.Technological innovation can be a key factor in meeting these problems successfully. The general belief is that the information base for technological innovation exists within mining companies and governmental agencies but current industrial and governmental strategies and structures impede the transformation of this knowledge into the mining products and processes required for growth.The purpose of this paper is to determine where Canada is in terms of coal mining on the innovative ladder. The paper as presented: defines innovation and innovative process; gives an historical ""broad brush"" review o f innovation in the industry; and suggests the challenges to be faced in the future."

Jan 1, 1985

By Eric R. Skonberg

"Technology exists today to blind drill a mine shaft 20 feet in diameter, unlined, over 3,000 feet deep. These shafts must be lined in the most economical, safe and expedient manner possible. A new technique of stacking precast concrete cylindrical sections in the unlined shaft has been developed to yield a dry and hydrostatically lined shaft .These sections must withstand an external radial pressure of 3,000 feet of water yet take up as little room as possible in the shaft . Using high-strength concrete, wall thicknesses may be kept at 2 feet. The outside diameter of the sections has been chosen to be 18 feet to allow for some annular space between the liner and shaft wall. The concrete sections are produced in segments 10 feet long weighing 75 tons each. During drilling operations, the concrete sections are cast and cured. After drilling operations are complete, a headframe is situated over the shaft. The unlined shaft remains full of fluid. A special liner running tool is mated with the section in three steel ports at the bottom of the section. The section and running tool are lowered into the hole, and the tool is disconnected and returned to the surface. Subsequent sections are lowered and stacked using the same operation. Grout is placed behind the liner to result in a dry shaft."

Jan 1, 1981

By A. L. Holloway, N. M. Soonawala, L. S. Collett

"Since the late 1970s, a major R&D program has been under way in Canada to assess the concept of disposing of nuclear fuel wastes in deep plutonic rock. Atomic Energy of Canada Ltd . (AECL), a federally-owned corporation, has been given the responsibility of directing this research (Rummery et al., 1983).The Underground Research Laboratory (URL), constructed in a granite pluton 15 km east of Lac du Bonnet, Manitoba (Fig. 1) is a major component of the Canadian Nuclear Fuel Waste Management Program. A diverse geotechnical experimental program is being carried out during both the construction and operating phases of the URL. This program involves detailed geological mapping, rock mechanics and hydrogeology studies, and geophysical surveying, to characterize the rock mass surrounding the shaft, and it has been described by Simmons et al. (1983). As part of the construction-phase program, ground-penetrating radar (GPR) surveys are being carried out during excavation, in an attempt to delineate fractures both ahead of the excavation and behind the walls of the excavation. This paper presents the results of surveys performed during shaft excavation and describes a procedure for plotting the data.Ulricksen (1982) cites examples of radar surveys to evaluate surficial deposits, such as peat, sands and gravels, and cavity detection in subsurface hard rock. Fowler (1981) used radar for fracture and clay vein detection in coal seams.In Canada, pioneering work in GPR has been done by Annan and Davis since the mid-seventies (Annan and Davies, 1976). Their work concentrated on problems relating to permafrost in the Arctic ."

Jan 1, 1986

By R. F. Engler

"IntroductionThe Coal Branch region of west-central Alberta has been the focal point for unprecedented exploration and development activities over the past ten years prompted by the renewed markets for high-quality thermal coal. Although mines were developed and operated extensively throughout the region from 1910 until 1960, information relating to the detailed stratigraphy of the coal measures and their areal distribution tended to be localized to individual mine sites. Continuity along trend was impaired by a paucity of outcrop restricting geologic mapping to stream bank and roadside exposures. Recent studies and subsequent publications by Jerzykiewicz and McLean of the Geological Survey of Canada (1978, 1980) have established a detailed sedimentological model and defined the stratigraphic nomenclature for the region . The term Coalspur Beds has been adopted to describe the coal-bearing sequence between the overlying Paskapoo Formation and underlying Brazeau Formation. Complete sections of the Coalspur Beds have been compiled from sub-surface borehole data and published by Manalta Coal Ltd ., Dentherm Resources Ltd. and Luscar Stereo Ltd. This paper is an attempt to correlate this information on a regional basis to illustrate trends within the Coalspur Beds."

Jan 1, 1986

By E. Contestabile, T. R. Craig

"This report describes the development and effective use of shaped charges as part of the Elliot Lake Mine Roof Stability Project to remotely remove the heads from roof bolts. With a slight modification, these same shaped charges are being recommended f or use to the Brunswick Mining and Smelting Corporation Limited (Mining Division), to cut steel cable bolts.IntroductionThe Canadian Explosives Research Laboratory (CERL) often receives requests to cooperate in solving problems encountered in private industry or other sectors of the government. CERL is equipped to design and test explosive and pyrotechnic devices and the policy is to treat each case individually.The first case reported evolved from a request from a sister laboratory at Elliot Lake. The intent was to remotely remove the head s of roof bolts as part of a mine roof stability project. The device designed for this use was 1000,70 effective in the laboratory and 80% effective in the mine.The second case reported results from a request from a private mining company knowledgeable of the Elliot Lake Project. Their requirement was to remotely cut cable bolts. This request was first treated as presenting a new problem. The solution, however, proved to be very similar to the former."

Jan 1, 1985

By James D. Bliss, David M. Sutphin

"On the basis of differences derived from genetic, descriptive, and grade-tonnage data, graphite deposits are classified here into three deposit types: disseminated flake, amorphous (microcrystalline), or graphite veins. Descriptive models have been constructed for each of these deposit types, and grade-tonnage models are constructed for disseminated flake and amorphous deposit types. Grade and tonnage data are used also to construct grade-tonnage models that assist in predicting the size and grade of undiscovered graphite deposits. The median tonnage and carbon grade of disseminated flake deposits are 240 000 tonnes and 9% carbon and for amorphous deposits, 130 000 tonnes and 40% carbon. The differences in grade between disseminated flake and amorphous deposit types are statistically significant, whereas the differences in amount of contained carbon are not .IntroductionIndustrial minerals, including mineral construction materials such as sand, gravel, and crushed stone, have historically exceeded metals in global production value. Today, industrial minerals are being used in new and sophisticated ways in response to the late 1980s emerging information- and service-based economies' requirements for less metal and more industrial minerals . Natural graphite is an example of one such mine ral that has been known since ancient times, and is now finding new applications. Graphite was first used as an industrial mineral in Bavaria in 1400 A.D. where it was an important component of crucibles. Traditionally, natural graphite has been used in heavy industries. New applications, such as development of carbon-magnesite bricks a decade ago and the current advancement of alumina/graphite refractories, are increasing its graphite use. Other new uses for natural graphite, such as the use of graphite powder as a thermal blanket for the continuous casting o f steel (Northern Miner, 1987) and the addition of expanded graphite to polyurethane foam where it acts as a flame retardant (Industrial Minerals, 1987), are increasing the demand for this mineral. To meet future demand for graphite and other industrial minerals, knowledge of the characteristics of the deposit types in which they are found is important. A further look at the deposit types for graphite and at construction of descriptive and grade-tonnage models is warranted .The graphite industry recognizes three basic types of graphite , distinguished primarily on the basis of grain size: crystalline flake, lump and chip, and amorphous. These naturally occurring forms of graphite are products of metamorphism and are found in schists of various types, gneisses, and marbles. Temperatures of at [east 400°C are thought to be required for graphite formation (Landis, 1971). Synthetic graphite, also known as artificial or manufactured graphite, is a man-made carbon product and offers higher purity and lower crystallinity than natural graphite. Several authors have written about graphite's unique physical and chemical properties and the uses for individual types of graphite (Krauss et 01., 1988; Graffin, 1983; and Harben and Bate s, 1984)."

Jan 1, 1990

By Steven Chung

Decision Network Modelling in a mining operation represents a complex process environment that is inherently more variable than a processing plant or factory. The uncertain availability of loading locations, haulage paths, loading and hauling equipment, along with inconsistent operator behaviour, cause a relatively large number of upset events that must be recognized, communicated and dealt with by the appropriate management authority. Traditional process maps that represent a deterministic model of the mining process can quickly break down in the face of such a volatile environment. An alternate modelling strategy, composed of decision networks, focuses on the interactions between goal-oriented entities and their environment, allowing system integrators to explicitly determine the information to be exchanged while providing feedback mechanisms that improve system flexibility and decision quality. This ensures a consistent framework for incrementally increasing system automation.

May 1, 2010

By R. A. Walker, G. Scheltgen, T. Javorsky, G. Blackwell

"Recent engineering advances in open pit rock mechanics have resulted in improved pit wall slope design and improved operating procedures in the event of a major wall instability. At the other end of the spectrum, on the scale of single bench failures, considerable discretion is left to the mine operators as to how potential problems are handled. The usual alternatives are either to operate with caution beneath potential hazards, or try to bring the unstable rock down. In specific cases it may be advantageous to attempt to stabilize rock structures for reasons of access and operating safety.A t the Brenda Mines open pit a prominent structure on the north wall had caused recurring bench-scale wedge failures when exposed on each mining level. In spite of operating precautions a shovel was hit by a rockfall causing significant damage. The first section of this paper describes the investigative, design, and stabilization methods which permitted subsequent mining beneath the structure to proceed without incident. Emphasis is placed on the personnel and equipment resources available at the mine site which were used to minimize costs and which would be available at most operating mines.The second section describes an ongoing research project that utilizes radio telemetry to transmit slope monitoring data. As part of this project the wedge structure was instrumented so that it could be continuously monitored with the aid of a computer. The application demonstrated the potential of 'micro- chip' technology to remote data collection and processing as related to rock structure monitoring, slope stability and safety."

Jan 1, 1989

By William E. Stanley

The paper examines the problems that arise in undertaking socio-economic impact studies to meet the requirements of environmental-impact legislation governing new mine development or expansion. An approach to undertaking socioeconomic impact studies is outlined, responses to specific problems are discussed and ways in which the mining company can use these studies to meet its general objectives are explored. The paper concludes by examining how a socio-economic study, as required by legislation, can be used to assist the mining company in achieving some general objectives it will have in developing a mine.

Jan 1, 1979

By J. C. Botham, T. D. Brown

"Coke is the most costly item in steelmaking via blast furnaces . Recent innovations in cokemaking have been directed toward reducing this cost while simultaneously improving coke quality and expanding the range of coals used in the process. It is also important to meet increasingly stringent environmental legislation.Improvements in coke quality have been achieved by novel blend selection procedures, by charge density control using both selective pulverization and partial briquetting, and by the use of modifying additives.The Canadian Carbonization Research Association provides a focus for Canadian cokemakin g research which has demonstrated these technologies in a series of pilot-scale experiments."

Jan 1, 1980

By T. D. Traubert, J. T. Dietz, D. Catena

"Canadian process industry experts have often observed the strong trend for U.S. industrial safety and environmental laws to creep across the border. These experts will be interested in new United States (OSHA) regulations (29 CFR 1910.119), and anticipated new U.S. Environmental Protection Agency (EPA) regulations that will require over 28 000 U.S. refineries and chemical plants employing more than three million workers, to begin a comprehensive Process Hazard Analysis (PHA) of these complex plants immediately. Impending EPA regulations are expected to expand these efforts and add process Hazard Frequency and process Hazard Consequence reviews for many additional industrial locations.These regulations were created to reduce catastrophic industrial accidents, and emergency releases of hazardous chemicals which endanger employees, the public, and the environment.Accurate, and field verified Piping and Instrument Diagrams (P&IDs) are essential to permit a meaningful Process Hazard Analysis or emission release to be done. Today accurate P&IDs often do not exist. Many companies that have started to update their old P&IDs have found the process to be far more difficult, time-consuming,and expensive than they ever thought.This paper describes a new technique of computer drawn ""Intelligent"" P&IDs that can make a Process Hazard Analysis less expensive, more accurate, easier to perform, and provides lasting benefits to the plant owner long after the PHA has been completed."

Jan 1, 1993

By T. H. Patching, M. W. Mikhail

"The gas sorption and emission characteristic of coals are important to the planning and conduct of mining operations. Methane drainage from coal strata can also provide a supply of fuel in certain circumstances. Gas emissions have also created hazards during the handling and transport of coals and the release of gas also appears to be related to the yield of fine sizes during mining and processing operations.This paper summarizes studies at the University of Alberta on the permeability and gas emission of certain bituminous coals. Permeability of 'solid' samples was found to be drastically reduced by confining pressure. An emission index, .P, which has been related to outbursting behaviour of coals, has also been related to the proportion of fine s in cleaning plants. Gas sorption isotherms are dependent on temperature, moisture content, the gas involved and the type of coal and can be approximately expressed by the Langmuir or the Freundlich equations. Sorption values in sections taken across a given seam were similar but considerable differences were found in . P indices in the different coal layers of a seam.IntroductionThe emission of gases, especially of methane, from coal has been a subject of great interest (and sometimes a matter of life and death), to those who dig and handle coal since it was first mined from underground pit s. Many studies and investigations have been carried out on gas occurrences and emissions but our knowledge of the precise mechanisms of gas sorption, desorption and flow from coal is still incomplete. It is the purpose of this paper to review the principal factors involved in these processes and to briefly rep ort some of the results that have been obtained by studies in the laboratories of the Department of Mineral Engineering, University of Alberta, and Coal Research Laboratory, Edmonton, CANMET"

Jan 1, 1986

By John F. Vynne

This paper will discuss several of the systems and processes that have been developed over the past few years, and are now being utilized by major mining companies on draglines in North America, Australia and South Africa. These technologies include production monitors and reporting systems, GPS navigation systems, structural integrity monitoring systems, structural analysis studies to increase the dragline RSLs, and inspection and response strategies. The use of these technologies provides significant increases in dragline production, and reduces maintenance costs and downtime. The question that needs to be asked is what value is there in monitoring? Increasing dragline productivity is dependent upon to two items with the overall goal being to maximize the number of bank cubic meters moved and to uncover more coal: 1) maximizing payload and 2) maximizing the number of cycles. If you do not measure and try to optimize the parameters that impact payload and number of cycles, there is very little chance that you can improve overall dragline productivity. These parameters are: Maximizing payload is dependent upon the following: ? Geology ? Blasting ? Monitor weighing accuracy ? Engage location ? Disengage Location ? Rigging ? Suspended load ? Bucket characteristics ? Operator skills ? Minimizing rehandle Maximizing the number of cycles depends upon maximizing digging time, and minimizing cycle and delay/down times by: ? Minimizing Operational Delays ? Minimizing Mechanical Delays ? Minimizing Idle time ? Minimizing Walking time ? Minimizing Fill Time ? Minimizing Swing Angle ? Maximizing Swing & Return Rates ? Minimizing Spot Time A third reason to monitor, conduct structural analysis studies, and have inspection strategies is to prevent catastrophic failures such as shown in the following photographs (figures 1 & 2).

May 1, 2008

By T. H. Patching, M. W. Mikhail

"Data from a standardized procedure for measuring methane desorption rates from samples of Western Canadian coals gave a good correlation (0.994) with the percentage of fines (-0.6 mm) found in the corresponding run-of-mine coal. The correlation was independent of the mining method and the top size of the samples. It is suggested that both methane desorption rate and the production of fine coal sizes are functions of the fissuration of the coal being mined.This relationship, in conjunction with established data of degradation by unit process equipment, may be useful in predicting the amount of fines that will be produced from new seams of coal and by planned new washeries. It also could be a valuable guide in modifying existing washery processes to minimize production of fines."

Jan 1, 1980

By B. A. Watters, G. A. Parslow, F. H. Mcdougall

Carbonate-rich rocks occur at several localities within the Flin Flon volcanic sequence of the eastern Amisk Lake area. The rocks occur in two areas: as a group of small occurrences on islands within Amisk Lake and as two much larger linear belts running parallel to the regional structure east of Amisk Lake. Mineralogically, the rocks consist of talc and Ca-poor ankerite with occasional graphite. Segregation of these minerals and colour variation impart a well-defined planar fabric to the rocks and where the units are fairly continuous (e.g. Mosher Lake), their trend and attitude suggests a concordant relationship to the volcanics. Major and trace analysis of22 samples confirms the presence of two types, with one type being represented in each of the two areas. Most of the elements studied can be used to characterize the two groups, but three elements in particular give a clear separation: Mg, AI and Ni. Recalculation of the major element analyses, on a water and carbonate-f ree basis, indicates that one group (large concordant bodies with high MgO, high Ni and low AI20.J is altered ultrabasic material of peridotitic or dunitic composition. Because no relict igneous material is observed, and the contacts are apparently very sharp, it is possible that the hydration-carbonization process occurred simultaneously with intrusion, .in a closed system. The other group (small occurrences with relatively low MgO, low Ni and high AI203J represents alteration of basaltic rocks. AIthough some analyses suggest the introduction of calcium, as carbonate, along with the volatiles, the major oxides have remained remarkably stable during the alteration process(es).

Jan 1, 1981

By Scott K. Palm, Neil D. Pearson, Jr. Read

"Uncertainty is an important feature of many investments, but it is especially important for mineral properties. Mine properties often entail large investments and fixed commitments. Managers in the mining industry often view price uncertainty as undesirable, due to the possibility that the price of the mined commodity will fall to a level that prevents the firm from recovering its investment and fixed costs. This paper identifies pitfalls in conventional valuation methods and outlines a new approach to valuation based on option pricing theory and dynamic programming. In the process, it identifies generic strategies for organizing mine production in ways that allow the owner to benefit from the uncertainty in mineral prices. IntroductionRisk is pervasive in the mining industry. The operation and maintenance of a mine may involve high, and unavoidable, fixed costs. A mine owner can only begin to recover these fixed costs if the price of the mined commodity is greater than the incremental cost of production. But the prices of many minerals are extremely volatile. The price volatility of copper has been significantly higher than the price volatility of a typical stock, for example. A mine owner cannot be sure that the price of the mineral product will remain high long enough for the firm to recover its capital and fixed costs.Mine owners are able to minimize their losses during periods when the output price is below the incremental cost of production by temporarily closing operations. During these periods they incur only fixed costs. While shut-downs help minimize losses, the y do not help the firm recover its initial investment. If output prices remain low long enough, the fixed costs and original investment may never be recovered. High fixed costs, therefore, lead to substantial downside risk."

Jan 1, 1986