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By N. O. Johnson, J. Boyer, D. H. Sargent, R. B. Frahme

Although the Western bentonite industry has grown rapidly, it is facing major challenges to sustained growth. The fundamental penalty of costly overland transportation to both domestic markets and to US seaports is of increasing importance; as both substitute materials and foreign bentonites present more formidable competition in the historic market areas of drilling muds, foundry sands, and iron ore pelletizing; and as foreign demand grows more rapidly than domestic demand. The Western bentonite industry is facing these challenges by altering its transportation patterns, by upgrading of products, and by emphasizing customer service and stringent quality control.

Jan 1, 1980

By J. S. Vanderploeg

I WILL begin this presentation by citing the annual per capita use of copper in Canada. This is best calculated by taking refinery domestic sales, plus imports of the products of foreign fabricating mills (very little refinery copper is imported), and deducting the exports of Canadian mills. No attempt has been made to estimate the copper content of imports or exports of machinery, motors, etc., but the trade balance here is probably against Canada. In any event, we find that, though varying somewhat since the war, the estimated yearly per capita figure has reached a high of 18 pounds. This is practically on a par with the United States. The rest of the world uses an average of about 2 pounds per capita, yearly, though this includes some countries, such as Sweden, Germany and England, which consume much better than average quantities. It looks, therefore, as if the Canadian copper industry has not (as has been generally charged) been asleep after all.

Jan 1, 1962

By E. M. Yates, H. M. Hamilton

"For the assent of any new mining project it is essential to determine a realistic value of revenue from the sale of concentrates.A description of the market factors influencing the concentrate terms will be presented along with a detailed review of historical terms of a smelter contract for zinc concentrates. OverviewFor the assessment of any new mining project it is essential todetermine a realistic value of revenue from the sale of concentrates.This applies at all stages of assessment through to the final feasibilitystudy. In forecasting revenue for a zinc mine the followingfactors must be considered:(a) mill recovery and zinc concentrate grade;(b) metal price forecast for all payable metals;(c) smelter terms; and(d) other selling costs.Normally, data from test work are used to determine mill recovery and concentrate grade.Market forecasting, and indeed all economic prediction is an inexact science and probably will always remain so. We have our econometric models our input/output models and a lot of other tools. But they are of no help in predicting the unpredictable. OPEC's huge increase in the price of oil was certainly the most dramatic example of this. It had a tremendous effect on the cost of producing most products world wide and on the price of these products. Any forecasts made prior to the OPEC action were obviously proven wrong."

Jan 1, 1994

Until the early 1960s the world aluminium industry was dominated by six principle pro- ducers with integrated activities from bauxite mining to aluminium production. The growth in consumption of aluminium since that time and the emergence of additional producers has broadened the market for bauxite. In addition the increase in the optimum size of alumina refin- eries has influenced competing metal producers to unite in large joint ventures to minimize alumina costs. From these bases the paper examines present and likely future markets for Australian bauxite; differing marketing phil- osophies for serving those markets; factors influencing successful marketing; and the sources and relative strength of competition which Australia faces.

Jan 1, 1974

By William Mayrsohn

IMTRODUCTION The marketing aspects of a new precious metals property is often not considered until the mine actually begins production. At this point in time it is often too late or too expensive to change the mine's final product and not enough time to do an effective marketing program. MINE PRODUCT The rule for determining the mine's final product: The higher the gold and silver content, the greater return of metal at the lowest post-mining cost. . Dore Bullion: Most advantageous Advantages: - Highest return of metal. - Lowest refining cost per ounce of gold and silver. - Very compact and easy to ship in small quantities. - Easy to assay. - Assays between mine and refiner are comparable. - Melt losses are very small at the refiner. - Outturn of gold and silver 20-30 days for quick cash flow. - Gold/silver refiners can return or purchase metal soon after arrival at a nominal financing cost.

Jan 1, 1987

'Nothing happens until something is sold' This statement is not original - it is a necessary orientation for marketing industrial minerals. The most important single philosophy of marketing is that it recognises the consumer as the starting point. Production orientation is concerned with producing products that the customer might buy. Market orientation is concerned with finding the needs of the customer and how they can be satisfied. The difference between the two approaches can be recognised in company structures but the most tangible difference is in the approach by a company to selling and development. In other words, it is the market that decides what can be done with a mineral. The markets requirements dictate what mineral, what grade and what price will be paid. Therefore it follows that when pricing a product we should avoid taking the basic cost and arriving at a final selling price through a series of standard markups (unless government insists on it). We should start with the price the market can stand and work backwards to find out whether you have a profitable product or one that will fail because it is too dear. Naturally a thorough understanding of production costs is necessary particularly when marginal markets are concerned.

Jan 1, 1978

By Jacque Trottier, Marcel Vallée, Gratien Gélinas

"Mineral exploration in Canada traditionally has gone from boom to bust in cyclical pat-terns following market and discovery cycles, but other endemic factors related to exploration financing and performance have contributed to the amplitude and recurrence of these fluctuations. In view of these problems, junior exploration is reviewed here in a marketing perspective, looking at the 4 Ps: Product, Price, Placement and Promotion.In the 1980s, MEDA incentives gave the shares of junior and mining companies significant price and promotion advantages, and contributed to excessive exploration funding. Many were thus led to minimize the basic values needed for continued investor interest: appropriate levels of product quality, sustained share value and customer satisfaction. Basic changes are needed to improve the marketing of junior mineral exploration in the future, with or without improved fiscal incentives. To be successful, the required improvements must come from the technical participants, but the financial partners also need to be involved.Exploration in Canada must be marketed with vigour, both in Canada and internationally. Exploration, mine development and mine production are essential to our economy. They are environmentally acceptable and they are welcome in Quebec and in most Canadian provinces and territories. Canadian exploration and mining are entrepreneurial industries that must take better advantage of their strengths and achievements and remove the shortcomings that hinder them: nobody can do it for them!"

Jan 1, 1996

By W. D. BRENNAN

AS a rule the thoughts of engineers are more often directed toward the mechanical and physical conditions of mining practice than they are toward the disposition and the marketing of the product. This, I think, has been true of the coal industry to the present time not only among the engineering force but also generally true of operators. There has been a tendency to place the sales department in a rather secondary position; for a great many years there was a greater demand for coal than the supply would meet, so it was only necessary to increase production: either by expansion of operating mines, or opening new mines of greater capacity. While the production of coal is still a highly important phase of the industry, its enormous development throughout the country, the great advance in fuel, efficiency and economy, and the discovery of new reserves of competitive fuels have combined to create a buyers' market and force the present-day attention upon merchandising in modern ways. A buyers' market has a natural tendency to develop the keenest competition, frequently unscrupulous and nearly always profit-wrecking. Under such conditions bad practices are bound to grow and to extend until the industry is wrecked, or until wiser heads get together to reduce or eliminate unfair methods of competition. This is not so recent a condition as one might believe.

Jan 1, 1931

By James J. Fallon

Last summer Larry Miller of Roberts & Schaefer told me that his AIME committee would like me to present some thoughts on the marketing of industrial mineral fillers and pigments to this illustrious group in Las Vegas. Shortly after, Brian Coupe of "Industrial Minerals" (the magazine) notified me that I would be presenting a paper to the Fourth International Industrial Minerals Congress in Atlanta this June. It seems to me now it might have been more appropriate to reverse the papers. Las Vegas, a town based on risk, might want to hear what we have to say in Atlanta. The subject for June is "Risk Philosophies of U. S. Industrial Minerals Companies". However, upon reflection, marketing of industrial minerals reflects risk philosophies to a considerable extent, so we'll cut the deck and deal on the subject of marketing.

Jan 1, 1980

By Albert H. Fay

The gypsum industry makes significant contribution to the wealth of our nation. This non-metallic mineral ranks in the highest order with America's most precious resources. Evidence of this is borne out by the fact that gypsum is a vitally necessary element in the building, industrial and agricultural industries. In 1967, the United States consumed 14 million tons of this valuable ore. Of .this amount 69% was required by the building industry for the manufacture of building materials. An additional 21% was directed to the industrial market, for the manufacture of Portland Cement and for other industrial uses. The remaining 10% was used for agricultural purposes.

Jan 1, 1969

By O. M. Johnson

Barite and bentonite are the two principal components of drilling fluid systems used in the petroleum industry for oil and gas well drilling with rotary-type rigs. Approximately 87 percent of the world's annual production of barite is used in drilling applications. Of the worldwide production of bentonite, an estimated 30 percent is used. The drilling fluid, or drilling mud, to which barite and bentonite are added, performs five distinct functions: Lubrication-The liquid phase of the drilling mud lubricates the drill bit, preventing premature failure of the cutting edges and bearings. it also helps to soften the formation being drilled. Cuttings Removal-A mud system must be able to carry rock cuttings broken loose by the bit up to the surface where they can be removed by mechanical or chemical methods. The fluid's ability to perform this function depends upon maintaining a proper balance between the rate of circulation of the fluid and the colloidal properties required to entrain the cuttings in the mud to prevent their settling to the bottom of the hole. Hole Stability-The pressure exerted by the mud against the wall of the bore hole prevents the collapse of the uncased portions of the hole. Downhole Information-The fluid characteristics of the mud should be such that good cuttings samples, cores and electric logs may be obtained to help evaluate a well's productive zones and potential. Control Oil, Gas and Water Flows-It is essential that a drilling fluid offset any pressure from naturally occurring formation fluids in order to prevent a potentially wasteful and dangerous blowout.

Jan 1, 1980

By L. Xinguang

Shandong MinMetals Corporation, a state-owned import and export organization located in the city of Qingdao, Shandong Province, China, was opened in 1954, with the mission of marketing metal products and industrial raw material in oversea areas for hard currency to support the modernization project of the country as well as the province. The management officers are appointed by the provincial government, and report to the Foreign Trade Department of Shandong Province. Meanwhile, the company also receives guidance from MinMetals head office in Beijing, the capital city of China. The head office does not own and control any provincial MinMetals organizations, but merely coordinate business among provinces.

Jan 1, 1990

Marketing of mineral products has not yet succumbed to the degree of pre- dictability and exactitude that is fam- iliar to the engineer or metallurgist in pursuing their profession. Whilst the Great Market of the world economy dic- tates circumstances for the sale of min- eral products, there are more than just buyers and sellers in the determination of the revenue received by the producer. For the engineer or metallurgist he will be required to gain an understanding of these participants and of the peculiar languages of the market place. This will be only one of his tasks in learn- ing to communicate with society, as his responsibilities increase as he climbs the ladder of success. There is un- doubtedly a need for better statistical information so that producers and sell- ers can make an appropriate and earlier response to market conditions. There is in addition, a need for more aggressive concern by raw material producers for the development and promotion of better end use of their products. Undoubtedly the marketing of mineral products will be more influenced by the direct involv- ment of government agencies than has been the case in the past. Whilst that 1. Director - Marketing & Finance, North Broken Hill Limited.

Jan 1, 1975

I trust you know now or will know by the time you havecompleted your degree and added a little on-the-job experience,how to make the product from the mine you are working for. Butyou may not know the process to turn it into dollars, which ofcourse will be the life blood of your company. I am not going topromise to turn you into super salesmen, but I hope I can takeyou beyond the level of believing that selling our mineralproducts is as simple as putting in it on to a train, waving itgoodbye and waiting for the cheque to turn up in the mailbox afew weeks later.

Jan 1, 1994

By George A. Guess

The making of contracts for the purchase of ores is a business which the metallurgist usually understands better than the miner. Companies in the custom ore business often employ an ore buyer who is aware of the class of ore which the smelter needs, and is thoroughly conversant with the business. The miner on the other hand makes ore contracts but seldom, and it is often only after a settlement has been made that he realizes the meaning of the terms of the contract under which he has sold his ores. He has expectations usually greatly in excess of the amount 'net proceeds' shown at the bottom of the settlement sheet. Seldom does the occasional shipper really know his contract. A somewhat similar parallel is to be found in insurance policies. We all have insurance policies; we never know the conditions contained in them until after the fire. The clauses in the policy are for the protection of the Insurance Company. An Insurance Company has no friends.

Jan 1, 1926

By A. M. Whiting

Competition for coal producers and their primary customers has constantly increased during recent years. The effects of the Clean Air Act Amendments of 1990 on the electric utility industry, coupled with the normal complexities of coal production, quality control, transportation and contracting techniques have spurred both buyers and sellers to increase their level of sophistication. This paper will review the basic aspects of the U.S. coal business and explore the commercial approaches which have proven to be most successful.

Jan 1, 1994

By H. T. Fargey

This paper considers the social, economic and political factors and their influence on future production and marketing of Western Canadian minerals. Among the subjects discussed are inflation, taxation, anti-combines legislation, unstable international currency relationships, economic nationalism and protectionism, the European Common Market and environmentalism.

Jan 1, 1973

By J. E. Castle

The essential foundation upon which to build an effective marketing program in industrial minerals is the ability to produce competitively mineral products meeting precise customer specifications and to ship them promptly and on schedule. Without this prerequisite, all the other factors in a second marketing program-creative sales management, energetic solicitation, advertising, technical service, new products, etc.are without meaning. The primary image to be created in the mind of customers is that of the reliable and prompt supplier of mineral products at competitive prices and of standard, uniform quality. With this favorable image implanted, it becomes possible to integrate the other essential factors into a strong marketing program; and without this image, little can be accomplished. After having .made provision for the basic product ion position outlined, there are then two fundamental considerations in the design of a successful marketing program for industrial minerals. The first of these is that the number of potential customers for the typical industrial mineral product is, relatively small, and indeed compared to the number of customers for consumer products, the number is actually minute. The second consideration is that the customers for industrial minerals are manufacturers and producers rather than consumers. These two factors lead to a necessity that the marketing program be specifically and uniquely tailored to fit the individual mineral product to be sold and to conform to an existing pattern of distribution.

Jan 1, 1962

By Lloyd C. J

The uranium markets are at present well covered by available producers. However the predicted increase in demand, recently reinforc- ed by the Arab oil crisis, will by, the early 1980s'outdistance supply. Current trends are towards light water reactors with-fast breeder reactors not expected to make any significant impact to the mid 1980s. The proposed lifting of the US embargo on the use of foreign uranium in US reactors will expand the market available to non US producers. A balancing in supply and demand worldwide will probably occur in the early 1980s. Australia's potential producers at present hold about 20 percent of the worlds U308 resources. Three companies, have contracts to supply nearly 10 900 tonnes of U308 between now and 1986 which represents about 1 percent of the predicted demand to 1986. Australian producers need to establish themselves more firmly in the market place in order that other countries will not replace us. Contracts can be written now which will allow for world market prices to be paid in the future, thus protecting the Australian producer.

Jan 1, 1974

By G. P. Larson

We define a specialized mineral market as follows: Specialized Markets are markets where a low volume of a given mineral is used to convey a large benefit to a specific product. Sales of these value added minerals to small markets generally require a different marketing approach compared to bulk or commodity markets for traditional minerals. Specialized and commodity markets are differentiated by several characteristics as listed in Table 1.

Jan 1, 1990