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The domestic mineral and material industry grew in some key sectors and declined in others during 1993; overall, the industry was poised at yearend for stronger growth in 1994. Metals production is expected to increase with anticipated growth in U.S. motor vehicle sales. There also may be increased demand for industrial minerals in 1994 based on domestic highway and building construction. Additional information on events, trends, and issues in the mineral and material industry is presented below and in the commodity sections that follow. Overall Industry Performance The value of processed materials produced from minerals in the United States during 1993 is estimated to have been about $326 billion, an increase of 5% compared with that of 1992. The estimated value of U.S. raw nonfuel minerals production in 1993 was $31.6 billion, about 1 % less than in the preceding year. The value of domestic minerals production has risen in 28 of the last 33 years.

Jan 1, 1994

The STATE MINERAL SUMMARIES publication provides estimated data and summaries of mineral activities at the State level for 1993. Most of the estimates are based on nine months data. Individual State summaries are published separately as State Mineral Industry Surveys and copies can be obtained from the appropriate State mineral officer. In an effort to facilitate the rapid dissemination of information and publications produced by the U.S. Bureau of Mine, an electronic document dissemination system is now available for use. MINES FaxBack is a simple-to-operate automated fax response system that operates 24 hours a day, seven days a week. All a user needs is access to a fax machine with a touch-tone telephone. MINES FaxBack can be accessed by calling (412) 892-4088, using the touch-tone telephone attached to the user's fax machine. After calling MINES FaxBack, the requester is guided by a series of voice messages to assist in ordering the desired documents.

Jan 1, 1994

By R. Svensson

Mill linings play an important role in all comminution processes with tumbling mills. The selection of the lining profile and the lining material has a great impact on over-all grinding cost and mill throughput. The cost of the lining itself is minor in comparison with media cost, energy cost and the value of the material produced in the mill. The total scope must be considered when mill linings are selected. This paper presents case stories and explains the technology behind: -different lining profiles in rubber and steel -OREBED magnetic lining -Steel-cap rubber lining

Jan 1, 1994

Mine drainage and mine reclamation are topics of major interest to the mining industry, federal and local governments, and the general public. This publication and its companion three volumes are the proceedings of a conference held in Pittsburgh, Pennsylvania, April 24-29, 1994. There were twelve sessions (69 papers) that dealt with mine drainage, including modeling, geochemistry, prediction, treatment, control strategies, characterization, hydrology, and case studies. These sessions comprise volumes 1 and 2. The six sessions (34 papers) that dealt with reclamation and revegetation of disturbed lands are included in volume 3. Volume 4 includes the six sessions (34 papers) that dealt with such topical issues as fires at abandoned mine sites, subsidence, hydrology, mine wastes, and policy. Poster session presentations are represented by 49 papers and 92 abstracts that have been placed in the back of volumes 2, 3, and 4, consistent with the subject of that volume.

Jan 1, 1994

By Michel C. Frippel

This section of the Minerals Yearbook reviews the minerals industries of 45 countries: the 12 nations of the European Community (EC) (Belgium, Denmark/ Greenland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, and the United Kingdom); 6 of the 7 nations of the European Free Trade Association (EFTA) (Austria, Finland, Iceland, Norway, Switzerland, and Sweden); Malta; the 11 Eastern European economies in transition (Albania, Bosnia and Hercegovina, Bulgaria, Croatia, Czechoslovakia, Hungary, Macedonia, Poland, Romania, Serbia and Montenegro, and Slovenia); and the countries of Central Eurasia (Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgystan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan).

Jan 1, 1994

Mine drainage and mine reclamation are topics of major interest to the mining industry, federal and local governments, and the general public. This publication and its companion three volumes are the proceedings of a conference held in Pittsburgh, Pennsylvania, April 24-29, 1994. There were twelve sessions (69 papers) that dealt with mine drainage, including modeling, geochemistry, prediction, treatment, control strategies, characterization, hydrology, and case studies. These sessions comprise volumes 1 and 2. The six sessions (34 papers) that dealt with reclamation and revegetation of disturbed lands are included in volume 3. Volume 4 includes the six sessions (34 papers) that dealt with such topical issues as fires at abandoned mine sites, subsidence, hydrology, mine wastes, and policy. Poster session presentations are represented by 49 papers and 92 abstracts that have been placed in the back of volumes 2, 3, and 4, consistent with the subject of that volume.

Jan 1, 1994

Mine drainage and mine reclamation are topics of major interest to the mining industry, federal and local governments, and the general public. This publication and its companion three volumes are the proceedings of a conference held in Pittsburgh, Pennsylvania, April 24-29, 1994. There were twelve sessions (69 papers) that dealt with mine drainage, including modeling, geochemistry, prediction, treatment, control strategies, characterization, hydrology, and case studies. These sessions comprise volumes 1 and 2. The six sessions (34 papers) that dealt with reclamation and revegetation of disturbed lands are included in volume 3. Volume 4 includes the six sessions (34 papers) that dealt with such topical issues as fires at abandoned mine sites, subsidence, hydrology, mine wastes, and policy. Poster session presentations are represented by 49 papers and 92 abstracts that have been placed in the back of volumes 2, 3, and 4, consistent with the subject of that volume.

Jan 1, 1994

By Christopher B. Kapes

To reduce concentrate dewatering and drying costs, the Concentrator Division at Phelps Dodge Morenci, Inc. investigated available filtration technologies. Numerous methods were explored, including: drum, disk, belt, pressure, hyperbaric, and ceramic media filtration. An economic evaluation of the individual filtration technologies indicated the advantages of ceramic media filtration for Morenci concentrates. This paper discusses the technological development culminating in the first full scale application of ceramic media disk filters in North America. Low moisture contents are obtained at high production rates and greatly reduced operating costs.

Jan 1, 1994

By W. J. Mahoney

A good quality assurance program at a coal mine or power plant is accurate, timely, and consistent. The quality analysis is accurate due to a complete sampling of the coal stream loaded into the unit train. The sample analysis is accurate because standardized testing procedures are applied. Once the analysis is completed, the results must be communicated to the electric utility in a timely manner. The electric utility needs the results to better manage the coal inventory at the power plants. A quality assurance program can also help the mine deliver a consistent product to the electric utility's power plants. The importance of the three major tenants for a good quality assurance program: accuracy, timeliness and consistency, are based on major changes that are taking place in the electric utility industry.

Jan 1, 1994

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

By Jerry L. Smith

Industry on a whole has not been very receptive to government prodding to implement waste minimization programs. Waste minimization has the appearance of substantial benefits, however, there are underlying difficulties and suspicions that need to be addressed before industry will support pollution prevention initiatives. They can be summarized as follows: - Human behavior resists change, uncertainty, and unknowns. - New waste minimization techniques are difficult to find and research. - Calculating the true cost of present waste practices as well as new techniques being considered is difficult and time consuming. - Getting a consensus opinion of all the individuals affected on the course or technique to be employed in a pollution prevention program. New software products have addressed many of the problems associated with implementing pollution prevention programs: They contain research on a large number of pollution prevention techniques and case studies; they generally are accessed by EPA ID number, chemical name, or synonym; and some programs have the option to print a comprehensive written user-specific pollution prevention program.

Jan 1, 1994

By Mizuta T, Sakurai M

The Pine Creek Inlier produced 12 440 kg of gold in the period from the first gold discovery in the 1860s to the early-1900s. During the 1930s renewed large-scale prospecting took place and gave a foothold for today's gold mining operations. The rise of the gold price and improved mining methods in the 1970s and 1980s made possible low cost, bulk low grade mining operations. Various gold deposits including vein, network and stratiform types occur in the Pine Creek Inlier (Nicholson and Eupene, 1990). The Tom's Gully deposit is located 100 km south-east of Darwin in the Northern Territory. It is hosted in the early Proterozoic Wildman Siltstone and lies north-east of 1800 my old Mt Bundey Pluton (Figure 1). Around the Mt Bundey Pluton, there are several prospective base and precious metal deposits such as Quest 29. The Tom's Gully gold deposit was discovered in 1986 and yielded a total of 3070 kg of gold from ore averaging 9.35 g/t gold between 1987 and 1990 when the mining operation was terminated.

Jan 1, 1994

By G Neely

COPING WITH COMPLEXITY In every industry, and mining is no exception, plant and processes increase in complexity over time and managers and operators need correspondingly more knowledge. The mine manager has to delegate details to operators, engineers, metallurgists, accountants, safety specialists, personnel officers and the rest. Is it reasonable then, to expect the Mines Inspector to be competent to judge the conduct of all these operations against the criterion of the regulations? Obviously not, but what are the alternatives? One is a superficial inspection where the inspector goes on a hazard hunt for broken steps and missing handrails. Another is one in which an army of specialist inspectors marches on a mine, sometimes outnumbering the staff. Each is competent to assess some part of the operation and if he or she can find an opposite number among the mine staff, they can discuss details. But what good does it achieve? The system acts to remedy present defects and to make recommendations which, if only they were followed, would prevent the same things happening again. Given that this process has been going on since the first Factory Act of about 1840, how is it that there are any more defects left to put right? The answer of course is that defects keep appearing, and new defects arise as fast as the old ones are found and corrected. Further progress can only be made by preventing defects at their source.

Jan 1, 1994

By Glen Robertson, Jeff McLaughlin

"The Clarabelle Mill rock tailings have the potential to generate sulphuric acid through chemical and biological oxidation of sulphide minerals. Current rock tailings assay between 0.80 -1.40 %S, with sulphur occurring principally as coarse pyrrhotite. Acid generation within the tailings area can be substantially reduced by segregating pyrrhotite rich tailings in a submerged storage area and by depositing only low sulphur rock tailings in exposed areas. Laboratory tests confirmed that low sulphur tailings could be produced by flotation at reduced pH with a small xanthate addition. A plant test was conducted to evaluate the production of low sulphur tailings in conjunction with INCO's continuing commitment to environmental protection and progressive decommissioning of the metallurgical site.During the plant evaluation, approximately 5% of the mill rock tailings were reprocessed in a line of 100 tt3 Denver flotation cells. Tailing grades below 0.40% S were easily achieved through operation at pH 6 -7, with xanthate addition (dosages up to 0.02 lb/ton) and 10 -15 minutes of nominal retention time. Froth depths between 1 -3 inches combined with relatively liberal amounts of frother were required to pull the lightly mineralized froth into the concentrate which averaged 11% sulphur and less than 5% mass recovery. In addition, three field lysimeters were each filled with two hundred.ton bulk samples of low sulphur tails (0.35% S), standard rock tailings (0.98% S), and mill total tailings (2.30% S) for long term monitoring. The implications for full scale plant design, tailings area decommissioning, the possibility of increased nickel recovery and preliminary field lysimeter data are discussed."

Jan 1, 1994

By Michael Harley, E. Guy Charleworth

"Bedding-parallel thrust-hosted gold veins are developed in the Sabie-Pilgrim's Rest goldfield, eastern Transvaal, South Africa. The reefs display a complex history characterized by temporally and spatially overlapping events of similar mineralization and deformation. Recognition of the episodic reactivation of these low angle (5° to 10°) thrust faults implicates high fluid pressures (equalling or exceeding lithostatic pressures). Geochemical constraints limit the amount of fluid-rock interaction and the occurrence of transgressive mineralization within the Archaean granitoid basement suggests that the high pressure fluids originated at depth beneath the Transvaal Basin.Similarities exist between gold deposits of Sabie-Pilgrim's Rest and Telfer, Western Australia as well as Passagem de Mariana, Minas Gerais, Brazil. All deposits are sub-parallel to the enclosing bedding which is shallowly inclined. Furthermore, they are also hosted by contractional deformational structures and are clearly epigenetic in origin."

Jan 1, 1994

Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994

A broker relies heavily on mineral valuations and independent experts' reports to provide the fundamental information, both technical and commercial, which provides the basis of estimating the sharemarket value of securities and underlying assets. It is important to appreciate the significant variance that can occur between the market value and other types of valuation at a particular point in time. In general, most experts' reports and valuations seek to provide estimates of technical/fundamental or ""fair"" value which correspond to the Corporations Law and accounting standards requirements. They do not usually attempt to estimate (stock) market values and it is usually and quite correctly the broker's task to estimate market values on the basis of a technical appraisal and consideration of all other commercial, market and financial influences. Therefore ideally, an independent experts' report or information memorandum will include material relating to commercial and management aspects of a company as well as detailed technical reviews and fundamental valuations. Wherever sensible cash flow projections can be made, cash flow-derived valuations, usually based on discounted cash flow (DCF) calculations, remain the preferred valuation methodology. Brokers in general would not argue with this preference. However, there is a paucity of examples of valuations where alternative methods are applied as a check on the reasonableness of a DCF-based estimate.

Jan 1, 1994

By D. W. Euler, D. G. Brophey

"In an attempt to address the issue of rising labour costs, and to improve productivity, a laser-based system to guide underground LHDs and trucks has been developed. This comprehensive system is known as the Opti-Trak system.Essentially, the vehicle is equipped with front and rear-mounted lasers which scan a reference strip mounted on the drift back. The vehicle follows this reference strip and in addition, based on reflective bar codes mounted beside the reference strip, initiates certain functions (i.e. dump cycle, speed change, brake check, etc.). Any programming that is drift-specific is handled by the positioning of the reference strips and bar codes. Consequently, the vehicle can easily travel to many different haulageways or branches, providing the reference strip and bar codes are in place.The advantages of this system are an immediate elimination of haulage operator costs and an increase in available hauling time to 7 hours out of an 8-hour shift as compared to the typical 5Y2 out of 8 hours that a manned haulage system offers.This paper describes the Opti-Trak system and the benefits to be realized from automation of mine haulage requirements."

Jan 1, 1994

By McMahon D

The approach to valuations at the Normandy Poseidon Group is a measured and methodical process that utilises skills sourced from a number of different disciplines. Whilst being subject to a strict set of guidelines, it is also sufficiently flexible to be able to cope with the considerable variety across the resources industry. The group uses Discounted Cash-Flow (DCF) techniques extensively in order to develop a base valuation. Other external factors (eg the market) are, however, also taken into account when forming a view on value. Other methods of valuation are used in tandem or as alternatives depending on the task. DCF techniques are an important tool but would never be used in isolation. Considerable care must be given to developing the DCF analysis as its components (eg discount rate) are prone to misuse. Whilst the valuation process is quite detailed and scientific, it is really only as good as the inputs or assumptions (technical, financial, etc) that are used. The methodology used remains consistent whether the group is undertaking the corporate planning process or making an acquisition.

Jan 1, 1994