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The production of sulphuric acid at Port Pirie by the contact process began in March 1924 with the commissioning of the Electrolytic Zinc Co.'s roasting and acid plant. This plant, operated by B.H.A.S. Pty. Ltd. on behalf of the E.Z. Co., continued to produce sulphuric acid from the gases evolved when roasting Broken Hill zinc concentrate in mechanically rabbled furnaces until September 1954, when the plant was closed down.In this peri9d of approximately 30 years some 600,000 mono tons of 98·5 per cent sulphuric acid was produced, most of which was used for fertilizer production at Wallaroo and Port Adelaide. During World War II 14,400 mono tons of the above was produced in the form of 20 per cent Oleum and railed to the Salisbury Munitions Factory for use in the production of nitro-glycerine, gun-cotton and T.N.T.In the early post-war period various ways of converting at least some of the sulphur in the gases' discharged to atmosphere from the lead sintering plant were considered until, in 1949, it was decided to erect a modern contact acid plant. Much work remained to be done on the roasting plant to produce a gas of suitable grade for the contact process and also on the design of a purification section suitable for the treatment of D.L. gases.The acid section itself, however, was largely of conventional design and it was therefore decided that this would be erected first. To it was then attached a sulphur-burning section to allow it to operate as a "hot gas" brimstone acid plant until the roasting and gas purification plants had been designed and erected. In this way the urgent need for sulphuric acid in the fertilizer industry would be relieved, to some extent at least, as soon as, possible.

Jan 1, 1956

Mount Read is 'situated in the county of Montagu, on 'the west coast of Tasmania, about 20 miles inland from. Remine in an easterly direction, 15 miles northerly from Mount. Lyell, and 30 miles south-east from Mount Bischoff, and is one of the mountains forming the west coast range; it rises to a height of 3890 ft. above sea level.About eleven years ago the first mineral section was taken up on Mount Read by a Hobart company, known as the Mount Reid Silver Mining Company, consisting of 25,000 shares its holding consisted of one section of 80 acres, held under mineral lease. Prospecting was carried on for some months under great disadvantages, as all supplies had to be carried up the mount from Dundas, a distance of nine miles, on men's backs, until a pack track for horses was made.The track rises 2500 ft. in the first five miles, and then falls 200 ft. from that point to the mines, which are at an altitude of 3000 ft. above sea level, and at a point about two miles westward from the summit of the mountain, approximately midway between Mounts Read and Dundas.

Jan 1, 1901

A President, soon after he is appointed, sees looming ahead of him the Presidential Address; and in something approaching despair wonders what he can possibly talk about which might hold the interest of his audience. After various casts about, it occurred to me that perhaps prospecting, and more particularly prospecting in Australia, might provide a subject. This is because, 'in the first place, 'prospecting is passing from the stage of chance surface discovery to that of systematic search applying scientific methods to theproblems involved, and in the second, it is the section of the industry with which I have been concerned through much of my: working life. As it makes an address of this sort more interesting if it includes specific reference to actual experience, I hope you will bear with me in such references to actual prospecting as I may use to illustrate the argument. Prospecting has always carried the glamour of sudden wealth. The picture of the prospector engaged, perhaps for years, in fruitless search suddenly coming on riches beyondhis hopes is, deeply etched in the Australian imagination. In few other places has the fervour of prospecting run higher than it did in Victoria in the generation beginning little more than a century ago following the discovery of gold.People arrived from overseas in great numbers. Most of them proceeded to: the goldfields. They moved in thousands from new find to new find. In 'so doing' they determined much of the course of the State's development. The experience of prospectors led them to formulate all sorts of theories little impeded by awkward facts, to account for the apparently unpredictable occurrence of gold.The ideas which men followed, occasionally to success, and which they were prepared to back with all they had were strange and, various, many stories are told of them.

Jan 1, 1959

By Ralph B. Stevens

The objective of this 20-month program was to define the relationships between mine ventilation, temperature, humidity, ore properties, material's used in mine operations, etc., and the spontaneous combustion problem in underground metal mines. Tradeoff studies of availability, reliability, cost, and maintenance of spontaneous combustion protection sensors and telemetry were conducted, after which a prototype system was selected from four design alternatives. This selected system was then laboratory tested and demonstrated in an underground copper mine.

Jan 1, 1979

By S. H. Lorain

This paper briefly describes the principal commercial and near-commercial deposits of gold-bearing gravel and the important placer-mining operations in Lemhi County, Idaho. It is on of a series on western mining districts being published by the Bureau of Mines. This paper is based on a field survey of the placer-mining districts of Lemhi County in the summer of 1938. Available information concerning gold-bearing gravels was obtained from prospectors and claim owners; operators supplied the data on mining operations. No attempt was made actually to test the gravels. The principal object of the examination was to indicate placer areas worthy of further investigation by prospective operators.

Jan 1, 1939

By Michael Rieber

The increase in f.o.b. mine prices of coal from $5/ton to over $18/ton in five years [1] has increased the significance of transportation costs. Coals produced in the vicinity of the consumer bear a much lower transport cost than those produced in the west. This differential may be used for flue gas desulfurization, other cleaning, or further processing of local coals. To the extent that western coals are cheaper to produce and have a lower sulfur content, they offset the locational disadvantage. To the extent that they have a lower heating value, the disadvantage is exercabated. Given the other conditions, an accurate analysis of transport costs will help suggest the location of coal mining and the moue of transport both transport costs and tariffs have risen. Together they have increased delivered coal prices, altered the balance between the use of coal and other fuels, helped to alter the location of mining activity, and put pressure on consumers to examine the cost effectiveness of alternative transport modes. Transportation options for long distance coal movements include rail, barge, pipeline, and EHV transmission lines. A summary of system parameters is shown in Table 2.1. Barge transport, pneumatic and slurry pipelines are discussed elsewhere in this report. Together with EHV, they have been the subject of previous studies [2,3,4]. Slurry pipelines have been shown to be especially useful where rails are not available [2] but the technical problems of dewatering, handling, and utilization of lines [5] remain unresolved. They are discussed in Section 3. Barge transportation depends on the location of the mine and consumer with respect to the waterway system. One drawback of barge shipment is interruptions due to winter, and low or high water conditions. Mine mouth power generation followed by EHV transmission of over 500 miles has been shown to be the most expensive means of delivering an equivalent amount of energy to consumers [2].

Jan 1, 1977

By H Ulrich Leiste, Leslie Talor

This paper describes a series of small scale tests conducted to investigate the loading applied to a flat plate by the detonation of a cylindrical charge very close (between two and three charge radii from the center of the charge) to the structure. The testing used very small quantities of explosive (PETN): Two different series of tests were conducted. In the first test series, impulse loading on the target plate was investigated using three different sizes of charge. In the second series, pressure time profiles were determined. The charge size was 6 g or less. Impulse was found using high speed video of the target plate to determine its displacement as a function of time, from which initial plate velocity was obtained. Kolsky Bars, placed at the same distance from the charge as the target plate, were used to determine the free-field pressure time profile of the output of the charge at this distance. Two different types of target plates were used in the impulse study. One was just a plate while the other was a plate constrained with a steel frame.

Jan 1, 2009

By Peter Campi, Harry R. Asche, Ian P. Callow, Edmund G. Taylor, P. Scott Smith

The US$1,850 million EastLink project is a 39km tollway and includes twin 3-lane,1.5km long, undrained driven tunnels. The hard rock tunnels are being built to avoid passing the motorway through the Mullum Mullum Valley and so to help preserve the unique flora and fauna in the area. This paper describes several of the key issues in the tunnel design and construction, including: the integration of the temporary support design with the Contractor’s tunnel excavation and support procedures, including sharing of responsibility between the Designer and Contractor for support type selection and the production of a project specific rock mass classification system to enable more objective determination of ground conditions. detailed hydrogeological assessments during the design and construction phases to allow confirmation of design loads for the tunnel lining design and the various suite of waterproofing tools in order to meet the project inflow requirements. development of a pre-cast invert solution to the main tunnel secondary lining to enable faster lining construction and to minimize risks to the tunnel membrane associated with fixing reinforcement and construction traffic.

Jan 1, 2007

I attended a funeral in West Monroe, Louisiana, for one of the best powder peddlers I’ve ever known. He started work in 1948 for Dixie Dynamite, a seismograph explosive distributor. His first job was as a truck driver, then magazine keeper and then sales re p re s e n t a t i v e . When Dixie Dynamite quit, he acted as an explosives sales agent for sometime before moving on to Kansas to be a sales rep for a distributor there. We called him the “ragin cajun” long before James Carville came on the national scene messing up things. While he was born in G e o rgia, he was a Cajun at heart. I don’t believe the old saying, “Build a better mousetrap and the world will beat a path to your door.” To me, the best products in the world need to be sold. Two examples of this are the Beta system for TV and the Apple Macintosh computers. Beta is the best system but VHS took over because the Beta people fell down on the selling job. Windows 98 is Macintosh ‘86 but again the engineers were not salesmen. Marion “Johnny” Johnson who was buried only about a half mile from his first magazine site proved that good selling is good citizenship. He could have sold any firstclass product, for he wouldn’t tolerate inferior items, and made a successful career of it, but he chose dynamite and the industry benefited from his talents.

Jan 1, 2004

By Mehmet Guney

At the Armatcuk mine in Turkey, various modifications of sublevel methods have been tried during the last decade in an effort to eliminate gob fires, dangers from roof falls, and surface subsidence, and also to increase extraction efficiency. From the experience thus gained, it was decided that the most likely system to give maximum benefits, considering the existing geological conditions and coa1-seam characteristics, was hydraulic stowing. This paper examines trends in the working techniques of hydraulic stowing and discusses the favorable results and technical problems that the method produced at Armutcuk. The Armutcuk mine, a subsidiary of Eregli Coal Mines (EKI), produces 1300 tons of run-of-mine coal daily from thick (about 10-90 ft) and highly dipping (about 50-90°) coal seams. The coal is highly volatile with good coking properties that make it highly suitable for industrial use. Most of this coal is used in the iron and steel industry at Eregli on the Black Sea coast. Complete recovery of the coal is of vital importance to industrial development and progress. Initial coal extraction was carried out by means of a sublevel mining system modified to accommodate local geological conditions and coal seam characteristics. This method is similar to that employed in metalliferous mines. Several problems arose from the application of the method, one of them being the prevalence of gob fires which caused periodic shutdowns in some sections. To achieve maximum coal extraction with minimum dilution, to eliminate gob fires and surface subsidence, and to reduce fatal accident rates, a decision was taken to change from this method to a hydraulic stowing system. The pres- ence of large deposits of conglomerate and sandstone on the surface contributed to the decision to employ this new method. Although hydraulic stowing practices have been carried out in America and Germany, Upper Silesia may, so far as coal is concerned, be considered the birthplace of the method. Here the process was adapted to thick coal seams on a large scale to reduce dangers from gob fires and damage from surface subsidence. Today, the mining system is not only widely used in the coal mines of France, the Saar, India and Poland, but has also been successfully applied to the iron ore and potassium salt mines in Russia and Germany. LOCATION AND HISTORY The Kandilli-Armutcuk coal field, the most western outcrop of the North Anatolian coal basin, extends for five miles along the Black Sea coast (Fig. 1). The Armutcuk Mine is situated on the southern boundary of the coal field about 40 miles from Zonguldak and about 12 miles from Eregli. The history of coal mining in the North Anatolian coal basin goes back more than a century. Mining commenced on a small scale in the Kandilli-Armutcuk coal field in the late 1880's, and from this time until nationalization in 1940 the mines were operated by private Turkish and foreign interests. In 1940, Eregli Coal Mines was established to takeover the management of these enterprises. The Armutcuk Mine was developed for the first time in the mid-1940's. Since then it has been in continuous production and it now produces an annual 440,000-ton run-of-mine output from which 320.000 tons of salable coal is obtained. MINE GEOLOGY The carboniferous inlier of the Kandilli-Armutcuk coal field crops out over an area about three miles long and one mile wide. The major part of the inlier consists of the Namurian formation with only a relatively small area of Westfalian-A visible on the surface (Fig. 2). The Namurian formation, which has no exploitable coal seams in the Armutcuk Mine, consists mostly of arkose sandstones and black shales often having

Jan 1, 1969

By B. Arjang

ABSTRACT: Ground stresses are one of the significant factors in the context of rockbursts and underground instability at some hard rock mines in Canada. Overcoring strain relief measurements using triaxiaI strain eel is were performed at depths between 60 to 1890 m at several mine sites to provide stress data for stability analysis and optimum mine design. Pre-mining ground stress determinations from 64 stress tensor analyses resulted in the following average stress gradients: Maximum horizontal stress. -Hmax - 8.18 - 0.0122 MPa/m depth Minimum horizontal stress. _-,,min - 3.64 - 0.0276 MPa/m depth Average horizontal stress. -11, 5.91 - 0.03-19 MPs m depth Vertical stress. '-, - 0.0266 - 0.008 MPa/m depth The maximum and minimum horizontal compressive stresses. with an average ratio of 1.75 ,0..45. prevail in east--west and northerly directions. respectively. Horizontal compressive stresses in excess of vertical overburden load were determined. indicating large variations in ratios to a depth of about 1000 m with decreasing trend towards depth. From present data. a particular regional zoning for the magnitude and direction of horizontal stress fields cannot be outlined. A common feature at mines with near vertical orebodies is that the maximum horizontal compressive stress acts perpendicular to strike while the minimum horizontal compressive stress is aligned on-strike. The vertical stress components approach the gravitational overburden load.

Jan 1, 1989

By Graylin R. K, dea T. R, O&apos

The Wolgan Seam of the Upper Permian IlIawarra Coal Measures of the Western Coalfield of New South Wales consists of high volatile, low sulphur, medium hard coking coal with high fluidity. This seam, 1·8-2·4m thick, in the Wolgan area, dips gently at 1°_20 ENE and lies at 160-440m below the deeply dissected surface of the western margin of the Blue Mountains plateau.A detailed study of the deposit has revealed that the Wolgan Seam consists of four main coal plies separated by three distinct stone bands. Each of these subunits is lenticular and displays individual physical, chemical and mineralogical characteristics which exhibit distinct spatial distribution patterns across the area. Most noticeable is the presence of long linear ESE-trending zones of low ash - high volatiles - high fixed carbon - high fluidity which delineate the major distributary pattern within the deltaic environment of coal formation.This seam contains some of the highest fluidity coal in the world.The Wolgan area, close to the western margin of the Sydney Basin, is characterized by:I. a regional, closely spaced, homogenous joint fracture pattern dominated by an orthogonal pair set trending 3400 and 0700, to which the face- and butt-cleat directions respectively of the Wolgan Seam are sub-parallel, and2. a more widely spaced, heterogenous, cross-cutting pattern of regional structural fractures. Zones of bad roof conditions are probably associated with these lineaments which are subvertical and trend in three majordirections, viz., 005°,035° and 115°.

Jan 1, 1980

By Max Friedemann, Alexandros Bousdekis, Anna Gustafson, Helmut Mischo, Håkan Schunnesson

Many devices used in mining are not monitored by sensors or do not have their own intelligence. By retrofitting sensors and real-time data processing, machines can be integrated into an existing digital infrastructure. Within the project Mine.io funded by the European Union a Sandvik DE110 exploration drill rig is being digitized using various AI algorithms at research and education Mine “Forschungs- und Lehrbergwerk Reiche Zeche (FLB)” of TU Freiberg. The aim is to increase the productivity of drilling with real-time evaluation of the current rock to be drilled and the current maintenance status of the drill rig. The drill rig is equipped with a speed sensor, pressure sensors in the hydraulics, 3-axis vibration sensor, borehole length measurement and temperature sensor. The sensors are additionally attached to the drilling rig and no structural changes on the drill rig are necessary. All data are processed real-time at a server structure outside of the mine using AI algorithms to analyze which rock (ore or host rock) is being drilled and to perform predictive maintenance. Processed Data are visualized for the operator to optimize the workflow and the productivity.

Feb 1, 2025

By L. A. Maseko

"As part of the mining engineering curriculum, students are required to be placed in industry for vacation work or work-integrated learning (WIL). In this paper we review work-based placement as done at the four South African mining schools: the University of Johannesburg, the University of Pretoria, the University of the Witwatersrand, and the University of South Africa.Key aspects of past and current WIL (pre- and post-graduation) practices that may need attention are highlighted for consideration by all universities that provide professional qualifications. Work-directed theoretical learning, problem-based learning, project-based learning, workplace learning, and simulated work experiences are discussed as legitimate approaches to WIL.Regardless of the choice each institution makes, commitments of universities, preparedness of university teachers, and the desire for equity and excellence will play an important role in the provision of WIL.DefinitionsAccredited Qualification: a qualification awarded on successful completion of an accredited programme.Advisory Boards (or Committees): are essential infrastructure for a WIL curriculum that is built on the integration of the workplace and the university. This requires the collaboration of experts from both environments. Workplace advisors are critical to the success of the academy as they embody expert knowledge of the ‘real world’.Assessment: the process of determining the capability or competence of an individual against standards by evaluating performance.Category: a mode of registration defined in or under the ECSA Act which has a distinctive purpose, characteristic competencies, defined principal routes to registration, and educational requirements.Experiential learning: (in South Africa sometimes used synonymously with work placement or cooperative education) is a term used with a great variety of meanings in the international literature. More broadly, it may refer to learning that has meaningful learner involvement. It is the process of generating meaning from direct experience. In the international literature, experiential learning is learning through reflection on doing, which is often contrasted with rote or didactic learning."

Dec 1, 2018

By V. McLemore, N. Dunbar, K. Donahue

There are three principle lines of evidence that indicate the clay minerals found in the Goathill North (GHN) rock pile at the Molycorp mine are predominantly a product of hydrothermal alteration, not weathering. The unweathered drill core and samples from GHN have similar types and abundances of clay-mineral groups based on XRD analysis. Chemical analyses from the electron microprobe reveal similar chemical compositions for the hydrothermal alteration clays in drill-core samples and clays found in the rock pile. Textural evidence gathered from petrographic and microprobe examination also suggests a hydrothermal origin for clay minerals.

Jan 1, 2007

By Andrew Peterson

The Maine Department of Transportation offered this challenging design-build project for a new, 12-span, bridge over the Kennebec River in Bath, Maine. This structure would be built to replace the existing Carlton Bridge connecting the village of Bath, Maine to neighboring Woolwich, Maine. The design build team of Flatiron Structures, Inc., and Figg Engineers, Inc., elected to design and build a segmental concrete bridge. Site conditions dictated that this bridge would be supported primarily on deep foundations. Case Foundation Company joined the project team in the winter of 1997 to install twenty-two, eight foot diameter drilled shafts. The drilled shafts were designed with 8' diameter, permanently cased shaft sections and 7.5' diameter rock sockets. Shaft lengths ranged from 20' long near the river's edge to 100' deep in the middle of the river. Rock socket lengths ranged from 12' to 30' deep. Two Osterberg Cell load tests were conducted on production drilled shafts. Figg Engineers utilized the results of the load tests to "fine-tune" the rock socket design during construction of the drilled shafts. Construction of the drilled shafts proved to be very challenging and called on every member of the design-build team to work together throughout the project. One of the most challenging aspects of this project was in the installation of the 8' diameter permanent casing and drilling of the rock sockets. Early in the project, it became apparent that the top of bedrock was broken and unstable. This condition limited the advancement of the permanent casing and the affect of a "seal" at the top of rock socket. As a result, as the rock socket was advanced, loose material spilled into the hole and stopped progress of the socket. In order to resolve this problem, the design-build team developed a redesigned drilled shaft which included the installation of a steel sleeve to seal off the unstable rock formation. Following installation of the sleeve, the rock socket diameter was reduced to 7' diameter and advanced additional length to achieve required design capacity. All drilled shafts were installed with equipment supported on floating barges. Water access, along with the long shaft lengths and very hard bedrock required the use of cranes and drilling equipment that far exceeded the requirements of typical drilled shaft projects. This paper will discuss the relationship between design, construction, and equipment utilization on this challenging design-build project. [ ]

Jan 1, 1999

By Tracy Brettmann

The Highway 146 Bridge Expansion Project across the Clear Creek Channel in Houston, Texas was designed on driven precast concrete piles. However, during construction, the piles along one side of the bridge along the main channel encountered obstructions and couldn’t be installed. These obstructions turned out to be the remnants of a previous bridge foundation at this location, which was unknown to the designers since that bridge had been demolished 40 years ago. Those old foundations were massive 20 ft by 40 ft (6 m by 12 m) pile caps 11 ft (3.3 m) thick supported on precast concrete piles 37 to 55 ft (11 to 17 m) long. The foundation re-design for these locations involved installing a single 78 inch (2 m) diameter drilled shaft up to 125 ft (38 m) long to replace the originally planned driven pile supported pile cap. The drilled shafts would need to be installed within very tight tolerances since they were supporting a single bridge column directly above it. In addition to drilling through the obstructions, this work would need to be completed from barges in 30 ft (9 m) of water capable of dealing with both the current and tides affecting this area. The shafts were installed using a multi-step process. The first step involved coring a larger diameter 100 inch (2.5 m) hole through the reinforced concrete pile cap and removing the concrete inside. This was followed by the installation of a 72 ft (22 m) long permanent casing to and removing the soil and existing precast piles inside. Finally, the drilled shaft excavations were advanced to the completion depths (uncased) using bentonite slurry as the support fluid.

May 1, 2022

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 Nobel Insurance Service

[Executive Director’s note: ISEE is committed to continuing its efforts to ensure that blasters be made aware of the issue of migration of carbon monoxide resulting from blasting operations. In the July/August 2001 issue of the J o u rnal we printed excerpts from “Carbon Monoxide - The Silent Hazard,” an article from the Safety Update, published by Nobel Insurance Services. We also re minded readers of the text from the 17th edition of the ISEE Blasters Handbook in its section on trench blasting as follows: “...consideration must be given to the proper venting of gases generated from the blasting. Should those gases spread laterally rather than vent directly to the surface, the gases may travel underg round and finally vent well outside of the planned area. Such events may be caused by the strata, soil conditions or root systems, or existing and/or abandoned utilities or other man-made structures. In the worst situation, gases resulting from the detonation such as CO2, CO, and/or N Ox may travel through the strata and find their way into basements of nearby homes or businesses.” While incidents are rare, a number of cases in re c e n t years have resulted from outdoor blasting operations p roducing carbon monoxide gas that has migrated t h rough the earth and accumulated in nearby enclosed spaces. T h e re are steps that a blaster can take to be proactive in preventing incidents. These steps and studies of the occurrence have been expertly presented in several papers presented at ISEE conferences and included in the ISEE Conference Proceedings, available th rough the Blasters Library. In addition, Material Safety Data Sheets provided with explosives used in surf a c e blasting should provide additional information on gases p roduced by detonation. Below, we have reprinted the IME white paper, entitled “Fumes from Blasting Operations.” The paper underscores the unique set of circumstances that combine to contribute to high concentrations of CO measurements in underground, enclosed spaces following the detonation of explosive materials and provides recommendations to blasters

Jan 1, 2004

By Thomas D. Kaufmann

Introduction What drives the price of gold? Supply and demand, of course. But in ways far different from the forces that drive the prices of other major metals, such as steel, aluminum, and copper. Gold, in fact, is one of the few commodities where both buyers and sellers are happy when the price goes up. Current production, production costs, and variations in production have little influence on its price. Gold inventories are so tremendous that current production has small impact on the amounts available to the market at any time. Worldwide gold inventory and production The world's inventories seem to be between 78 and 98 kt (2.5 and 3 billion oz). Since biblical times, the gold miners of the world have produced about 98 kt (3 billion oz), mostly in this century. Only small amounts have been thrown away and most of it - more than 78 kt (2.5 billion oz) - remain in bullion, coins, or jewelry. About 40% is held by central banks and other governmental authorities, 30% by private individuals as bullion or coins, and about 30% as jewelry. Except for some of the jewelry and the few industrial applications, this inventory is constantly available in marketable form at a price. By comparison, gold production is indeed small. The US Bureau of Mines estimates that the world produced 1.5 kt (50 million oz) of gold in 1986. Consequently, production increased world inventories by only 2%. Variations in production have a negligible or very short-term effect on the supply and, consequently, on the markets for gold. Although South Africa mines about 40% to 50% of the world's annual production, continuing labor strife there does not seem to have ruffled gold prices. Determining gold's price Gold prices, however, do determine cutoff grades in the mines and, thus, do influence production. Nonetheless, changes in production have little impact on the inventory supply. Consequently, it has small influence on the price of gold on the market. With a fairly stable supply, price changes are driven by changes in its demand. Unlike other metals, very little of the demand for gold comes from industry. Dental, electronic, and other industrial uses for gold consume less than 46.6 t/a (1.5 million oz per year). It would be safe to assume that such uses are less than 124 t/a (4 million oz per year) for the entire world. Variations in the 124 t (4 million oz), compared to a supply of 78 kt (2.5 billion oz) of supply can have only a negligible effect. Production net of industrial uses adds perhaps 1% annually to world inventories. This could, in time, affect markets. The increase, however, is mostly absorbed by population growth - more people wanting to own gold - and by gold being put in more attractive forms, such as coins. As an ancient Lydian king discovered, minting bullion permits

Jan 9, 1987