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By William J. Miles, Raymond E. Blair

Introduction There has been much publicity of the boom and bust in oil and gas well drilling in the US, and many comments on oil and gas gluts. Despite this, the drilling industry remains the largest consumer of functional industrial minerals. The boom years of 1981 and 1982, compared with the bust year of 1983, show a sharp reduction in the consumption of industrial minerals-1981, 7.4Mt (8.2 million st); 1982, 6.3 Mt (7 million st); and 1983, 4.4 Mt (4.9 million st). Industrial mineral use rebounded in 1984 to 4.7 Mt (5.2 million st). This was the second highest year in history in terms of wells drilled and third highest in footage drilled. Table 1 shows the history of drilling activity and mineral consumption from 1971 to 1984. The uses of functional industrial minerals in oil and gas well drilling were detailed by Miles and Blair (ME, 1983, October, pp. 1397-1400). As an update, this article addresses only the changes that have occurred in the industry in the past two-and-a-half years. It will be directed to mineral use and new products introduced to the industry. Drilling practices A partial explanation of where wells are being drilled with lower quantities of minerals consumed is: • In the boom year of 1981, there was a proliferation of number of suppliers chasing the same business. This resulted in multiple sourcing, multiple warehousing, and a huge increase in inventory that became surplus in the following years. The bust year, 1983, caused a severe shakeout in the number of suppliers of minerals and associated drilling fluids. • In 1981 and 1982, the wild speculation in the oil and gas industry led to drilling of speculative deep gas wells. Oil wells were drilled on a wildcat basis - in areas of unproven productivity. • Presently, the oil and gas well drilling industry is very active. But drilling is directed toward proven areas of production and working over old wells for increased production. This means a large number of wells are being drilled with lower average foot-

Jan 11, 1985

By Dennis S. Kostick

Introduction Soda ash is known chemically as sodium carbonate, an important inorganic chemical. It has been produced for several centuries by processing certain vegetation and minerals. The US soda ash industry has evolved from several small sodium carbonate mining operations in the West. Now, a nucleus of six companies produce about one-fourth of the world's annual soda ash output US producers currently dominate the world market. But certain international events are occurring that will reshape the domestic soda ash industry in the next decade. Historical perspective Soda ash is used mainly in the manufacture of glass, soap, dyes and pigments, textiles, and other chemical preparations. All of these are the first basic consumer products produced by developing societies. About 3500 BC, the Egyptians became the first society to use crude soda ash. The soda ash was used to make glass containers. It was most likely obtained from dried mineral incrustations around alkaline lakes. Soda deposits were virtually nonexistent in western Europe. So people resorted to burning seaweed to obtain the ashes. The ashes were then leached with hot water and the solute was recovered after evaporating the solution to dryness. The solute, a crude "soda ash" was impure. But, it could be used to make glass and soap. These two products and industries were important to the population and economic growth of the region. About 11.5 t (13 st) of seaweed ash was required to produce about 0.9 t (1 st) of soda ash. Along the coasts of England, France, and Spain, seaweeds with varying alkali contents became important items of commerce and sources of soda ash before the 18th century. The LeBlanc process used salt, sulfuric acid, coal, and limestone. It became the major method of production from about 1823 to 1885. In the early 1860s, Ernest and Alfred Solvay, two Belgian brothers, successfully commercialized an ammonia-soda process to synthesize soda ash. It used salt, coke, limestone, and ammonia. The Solvay process produced a better quality product than the LeBlanc method. In 1879, Oswald J. Heinrich presented to the Baltimore meeting of AIME, a paper entitled "The manufacture of soda by the ammonia process." The paper compared the two processes and foretold the demise of the LeBlanc technique. World production of soda ash in 1880 was 680 kt (750,000 st). Of that, 544 kt (600,000 st) was produced by the LeBlanc process. Of the 2.8 Mt (3.1 million st) of soda ash produced worldwide in 1913, only about 50 kt (55,000 st) was by the LeBlanc method. The LeBlanc process was never used successfully in the US, except for a brief period from July 1884 to January 1885 in Laramie, WY. Previously, soda ash had been produced by burning certain plants, as exemplified by the early Jamestown colonists, or by recovering small quantities of natural sodium carbonate found in alkaline lakes, such as those found near Fallon, NV, and Independence Rock, WY. Before the 1884 startup of the first synthetic soda ash plant in the US at Syracuse, NY, most of the domestic soda ash demand in the East was met by imports, primarily from England. Large-scale commercial production of natural soda ash began in California in 1887 from surface crystalline material at Owens Lake. Production from sodium carbonate-bearing brines at Searles Lake began in 1927 (Fig. 1). In 1938, during exploration for oil and gas in southwestern Wyoming, a massive buried trona deposit, presumably the world's largest, was accidentally discovered. Recent mineral resource evaluation by the US Geological Survey and the US Bureau of Mines indicates that the Wyoming trona deposit contains 86 Gt (93 billion st) of identified trona resource in beds 1.2 m (4 ft) thick or greater. Additionally, there is about 61 Gt (67 billion st) of reserve base trona. Of this 36 Gt (40 billion st) is in halite-free trona beds and 24 Gt (27 billion st) is in mixed trona and halite beds. In 1953, the Food Machinery and Chemical Corp. (later shortened to FMC Corp.) became the first company to mine trona in Wyoming. Soda ash demand increased.

Jan 10, 1985

By Ray E. Harris

Introduction A resource of more than 122 Gt (134 billion st) of minable trona and mixed trona and halite underlies an area of about 3400 km2 (1300 sq miles) west of Green River, WY (Culbertson, in preparation) (Fig. 1). In 1982, the total domestic consumption of soda ash (refined trona) was 6 Mt (6.7 million st) (Kostick, 1983). About 90% of this came from Wyoming trona. This enormous deposit occurs in the Wilkins Peak Member of the Green River Formation that is of Eocene age. This formation is derived from sediments deposited in a large lake named Gosiute. Lake Gosiute occupied the Green River Basin in southwestern Wyoming some 38 to 54 million years ago. The Wilkins Peak Member represents a restricted, evaporite-rich cycle of deposition when the trona deposits were formed. A total of 42 trona beds are known. Of these, 25 are of sufficient thickness and extent to be considered minable (Culbertson, in preparation). The production of sodium compounds from the trona deposits in the Wilkins Peak Member began in 1896 when wells were drilled within the present boundaries of the town of Green River. The purpose of the drilling was for extraction of sodium carbonate brines. Sodium carbonate (sal soda) was removed from these brines at a plant in Green River. Bedded trona was discovered in 1938 in a core from an oil well drilled south of Westvaco. In 1947, the underground mining of trona began. Production has continued from 1948 to date. Currently, five companies are mining trona and producing soda ash from the Wilkins Peak Member in Wyoming. Additionally, Allied Chemical Co. mines and processes trona for Church and Dwight's sodium bicarbonate (baking soda) operation in Green River. Competition in the soda ash industry depends primarily on the efficiency of mining and refining, allowing for lower-cost production. Newer plants and mine designs should increase efficiency. Solution mining holds promise as an even lower-cost method of mining. Employment in the soda ash industry is declining since the newer mining and refining methods are less labor intensive. Declines in employment, however, may be offset as production increases. Due to the large resource, the availability of minable trona should not be a problem for perhaps hundreds of years. Geology of Wyoming trona deposits Forty-two beds of trona or mixed trona and halite occur in the

Jan 10, 1985

By G. T. Lineberry, L. Adler

Due to safety-imposed constraints on clearances for mobile bulk handling equipment, it is necessary to optimally select a unit based on speed and size. The unit cannot be both large and fast. Since output is proportional to both size (or capacity) and speed, the combination must be carefully examined to maximize output. A simple graphical procedure and a calculus-based solution are presented to accomplish this. While the procedure applies to all mobile bulk handlers, as an example of the solution technique, attention is focused on shuttle cars. Background Major variables To fully define a bulk handling problem, the conditions, equipment, and activities must be characterized. The conditions and activities, when lumped together, are termed "encumbered space," since they "act to impede motion, as with a burden" (Lineberry, 1979). The insertion of mobile bulk handling equipment into what is already a difficult set of conditions and activities compounds the state of encumbrance, as limited space is competed for by many normal and life support systems. Long (1972) recognized the effects of design criteria, including road width, on haulage vehicle speed and, therefore, on production. Velocity -clearance curves Velocity-clearance curves are either available or can be constructed in the field. A preliminary set of curves for average conditions and activities is shown in Fig. 1, where clearances are only for the side of the vehicle (Lineberry and Adler, 1984). These curves set the safe speed limits for a vehicle operating at given clearances, under given conditions and activities. When feasible, velocity-clearance curves should be constructed through field measurement and observation. Curve construction should also consider haulway roughness, distances, and operator skill, as well as loading and dumping characteristics. It should be noted that haulage capacity determination is a total systems problem, not one just dependent on velocity and clearances. Production requirements and company capabilities also influence capacity determination.

Jan 10, 1985

By David R. Delling

Introduction In 1967, Tenneco acquired Kern County Land Co. The primary reason for the acquisition was to obtain Kern's agricultural, manufacturing, and oil interests. Included in the Kern portfolio were the core of Tenneco's present sodium leases in Sweetwater County, WY. This lease base has been ex¬panded and now consists of 62 km2 (24 sq miles). Beneath this property lies more than 500 Mt (550 million st) of economic trona ore. Following the Kern acquisition, Tenneco continued exploration and feasibility studies concerning the trona leases. The effort was accelerated in 1976. Tenneco was attracted to trona because of the favorable lease position it held, the growth rate of the Wyoming industry during the 1960s and 1970s, and the prospects for a long-term, stable business enterprise. The reserve picture was certainly attractive to a company long accustomed to the never-ending struggle to replace oil and gas reserves. In 1978, Wyoming was a boom area that had experienced rapid growth for a number of years. Unemployment was very low and vacant housing nonexistent. The prospects for soda ash were somewhat different in the 1970s than now. But it was recognized even then that a new producer would have a challenging task to compete in this business. Tenneco knew the capital burden required to build a grassroots facility during inflationary time, would have to be offset elsewhere Since labor and energy are the dominant direct costs in mining trona and producing soda ash these factors have always received a great deal of attention. Contracting and permits Environmental monitoring on the site began in late 1977. With the already mentioned considerations in mind, engineering began by mid-1978. Brown & Root Inc. was selected as the general contractor for the project. S. A. Scott & Co. was the engineering subcontractor for the mine shafts, hoists, ventilation system, and miscellaneous mine facilities. Frontier-Kemper was awarded the contract for sinking the two mine shafts. Acquisition of numerous federal, state, and local permits occupied all of 1978 and 1979. The Wyoming Industrial Siting Permit, which addresses socioeconomic issues, drew the most public interest. Siting issues were all satisfactorily resolved by negotiating reasonable stipulations with various local governmental units, school districts, and the like. Site location The Green River project location is not truly remote. It is located within 5 km (3 miles) of Interstate 80 and only about 32 km (20 miles) west of the city of Green River. Nevertheless, a substantial investment had to be made in communication and utility links to the site. These included: • A 14-km (8.5-mile) rail spur connecting with the Union Pacific Railroad at Bryan, WY. This spur has four bridge structures including one crossing Interstate 80. Most soda ash is shipped by rail, and coal is received over this line as well. • A paved 5-km (3-mile) roadway connecting to Interstate 80. • A powerline extension of about 27 km (16.5 miles), along with two new substations. • A 24-km (15-mile) waterline connecting the plant to a pump station on the Green River. The site is located on gently sloping terrain at an elevation of about 2.1 km (6800 ft). Ground conditions are good for construction. Weathered bedrock lies near the surface in most places. Geology The general geology of the Green River Basin has been well described previously. Tenneco's ore is in several superimposed evaporate beds. But the bulk of it is present in Bed 17, located about 457 m

Jan 10, 1985

By C. P. Mangelsdorf

Introduction The use of frequency of vibration measurements to determine tension has long been accepted by industries that use electrical or stranded cables of wire ropes in their operations. In contemplating how to determine the tension in chords of a roof truss, it seems almost inevitable that a similar approach should be investigated even though there are some important dissimilarities in physical behavior between a chord of a rod-type Birmingham truss and a stretched wire rope. While the dominant feature of both types of behavior is the existence of tension, the bending resistance of the vibrating truss chord cannot be ignored. And it is common to have attached to the chord, pieces of hardware (turnbuckles, extension sleeves, wedge boxes) that represent concentrations of mass not usually found in a vibrating wire rope. Analytical solutions to the problem of vibrating wires or beams can be found in the literature on vibrations (Timoshensko, 1955; Den Hartog, 1956). But in every case, at least one of the ingredients of the vibrating truss chord is missing. The presence of axial tension, or bending resistance, of concentrated masses and of end conditions peculiar to truss chords is a combination that appears not to have been dealt with before, although the techniques for dealing with it are commonly known. The purpose of this note is to report the results of a project to measure and calibrate such frequencies. The work was conducted by the University of Pittsburgh under the sponsorship of the US Bureau of Mines. Field observations Tests were conducted on 24 different truss installations. The first 18 trusses were installed in shale roofs above Kentucky No. 9 seam and Illinois No. 6 seam. The remaining six were placed against the competent sandstone over the Pocahontas No. 3 seam in West Virginia. Chord tension was determined by two electrical resistance strain gages, in series, applied diametrically opposite to one another on the rod before tensioning. Due to the combined effects of inexact gage placement, rod bending and residual torsion in the chord due to tightening, errors in tension as high as 1780 N (400 lb) were reasonably possible. Due to faulty soldering or damage, three of the first 18 trusses and one of the final six were rendered completely unreliable. In addition to strain, the first natural frequency of vibration was observed to the nearest 0.1 Hz. Dimensions recorded included the span between contact points at the bearing blocks (Fig. 1) and the locations and amount of excess rod and rod gap at the wedge box and turnbuckle, respectively.

Jan 9, 1985

By C. F. de Mendonca, T. Kater, R. P. de Souza

The authors are to be commended for finding a material for pellets binding that we were unable to uncover during the investigations that led to US Patent No. 3,748,116, “Method for producing metallic iron powder from iron ore concentrate, ” July 24, 1973, by G.G. Reed, Jr., J.M. Karpinski, and S.V. Fox. This patent concerns a method of processing “super’ ‘-concentrates prepared from magnetite or “blue dust” into molding-grade metallic iron powder for use as a bulk commodity, in contrast to current methods which produce small batches that are custom-blended with additives and/or alloye to customer specifications. The one thing we had not found at that time was an organic binder (mineral-matter-free ) that would allow induration to produce hardened pellets that would survive SL/RN Direct Reduction. Peridur appears to provide this missing link needed for large scale (200 t/a, or 220,460 stpy) single line plant capacity consistent with a low market price to ensure greatly broadened use of metallic iron powder. I hope that industry will adopt this combination so that metallic iron powder usage can fulfill its potential

Jan 9, 1985

By G. G. Marino, J. W. Mahar

This paper provides an utierstanding of the betivior and potenttil damage of homes resulting from sag-type mine subsidence. This is done with extemive research of numerom case histories in Illinois collected by the authors. The howe response to substience-itiuced ground displacements are summarized and evaluuted. A damage level criteriu, specifically developed for residenttil structures, is presented based primarily on repair costs. Damage levels and the associated subsidence profile characteristics for each case history are compared.

Jan 9, 1985

By D. Gignac, P. A. Studemeister, H. Koza

Two epiclastic horizons in an Archean volcanic sequence host the gold occurrences on the Dunraine property near Wawa, Ontario, Canada. The Grace horizon of cherty and pelitic tuff strikes north-northwest and dips east. Native gold occurs with arsenopyrite in bedlike and podlike bodies of quartz lenses and stringers set in a pelitic matrix. The Parkhill horizon of lithic graywacke with associated flow-breccia strikes southwest and dips south. Native gold occurs with minor sulfides in similar bodies of quartz erratic within the Parkhill horizon. The auriferous bodies occupy paleotopographic channels and troughs within the two horizons. The former producers are the Parkhill mine with 1689 kg (54,300 oz) Au, Darwin mine with 473 kg (15,200 oz) Au, and Van Sickle mine with 48 kg (1536 oz) Au between 1902 and 1944. The gold occurrences are syndepositional with the host volcanic sediments laid during a pause in explosive volcanism. Fumaroles along steep gullies on the flank of a subaqueous volcanic center precipitated aprons of auriferous silica-sulfide mud. Downslope slumping resulted in exhalative debris flows; gold concentrated in flexures and depressions along stumpage channels. Renewed explosive volcanism covered the auriferous sediments with pyroclastic tuffs, arresting the slumping of in situ fumarolic deposits.

Jan 9, 1985

By David L. Rife

Introduction Our society is currently experiencing a change in civil philosophy toward US industrialization. We have become increasingly bent on the pursuit of a nirvanic state of zero risk. The money supply has become inversely proportional to its sources. And most mining companies, traditionally conservative, have become increasingly risk conscious. Rising taxes, high inflation, and decades of a steadily decreasing gross national product (GNP) - coincident with moral decay and disarmament - have eroded America's economic health. Psychology of US metal markets has shifted across the economic spectrum to disillusionment and discouragement. The sagging national economy, expanding governmental debt, and a backward mineral policy in concert with worldwide unrest and turmoil have caused great volatility in the metal markets. Congressional inaccessibility of US resources has contributed to its loss in strategic leadership and dependency on foreign suppliers and the common market. Large scale mining activities are now on the decline. And there is an overall slump in mineral exploration in this country. America now faces the sobering reality of almost total importation of 13 key mineral commodities and total dependence on foreign sources for five of them. There is a growing dependency on 21 of the 34 minerals vital to the US economy. And virtually everything needed can be imported directly from third world countries. Almost 85% of the free world's supply or production of vanadium, chromium, platinoids, manganese, and titanium - an essential to the aerospace industry - comes from South Africa. That country now plays a forefront position in supplying the West with minerals. The Soviets have become increasingly aware of this situation. They have made key moves in procuring for their own purposes major raw materials markets, particularly in South Africa. This is obviously threatening to the US' direction and brings about vulnerability to shortages and cutoffs. In spite of these developments and the overall change in the mining industry, there is good opportunity for growth ahead. The way has been paved for the smaller mining companies, particularly the more bullish of these. Smaller mining organizations possess a tight management and strong sense of direction. They can easily adapt to and cope with change. "Windows" that exist in the industry directly depend on a number of factors. These include the busi¬ness climate, market research and planning, management and human resources, applied appropriate technology, favorable hunting ground, and entrepreneurship. Mining as business Mining (and exploration) as a business is by its very nature highly speculative. It involves greater risk for a longer period of time than most other businesses. The entire mineral estate in the US continues to shrink. This is primarily because of various legislated wilderness measures. Consequently, the probability of finding an economic ore deposit in the US has decayed to less than 1%. Although the risk is high, the stakes far outweigh the gamble and are larger than most other businesses can offer. Mining properties, as investments or business opportunities, can provide effective hedges against long-term inflation because the real price for selected commodities, such as gold, may sometimes rise faster than inflation. Recessionary periods seem to provide the best climate for entering the mineral business or for a particular mining organization to expand its activities. Looking ahead and seizing opportunities during a depressed market will pay off. Property payments and royalties are likely to be lower. And the potential for an upward shift in prices for a given commodity is very positive. The decision to invest in a prom-

Jan 9, 1985

By K. A. Grace

K.A. Grace's article advocates usage of the terms describing resources as defined by the US Bureau of Mines (USBM) and the US Geological Survey (USGS). Originally recommended in 1943, the terms were revised in 1976 and again in 1980. Mr. Grace further recommends that the term reserves should be severely restricted and that it should encompass mining and processing factors. The list of references quoted in the article does not, however, mention the study concerning reserves that was made over a period of almost four years by a joint Committee on Definitions. This committee was sponsored by three societies - the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the Society of Economic Geologists (SEG), and the American Institute of Professional Geologists (AIPG). Most of the detailed work was done by a working party appointed by the Society of Mining Engineers (SME) of AIME. After studying previous definitions in the US as well as in the United Kingdom, Canada, Australia, France, and other European countries, the following definitions were proposed and accepted in 1974 by the SME board of directors. (Ore reserve definitions in Rhodesia, South Africa, or New Zealand were not mentioned as having been reviewed.) Table 1 lists definitions from MINING ENGINEERING, July 1975. Notice in Table 1 it was mentioned, under Resources, that the definitions of reserves were recommended for the purposes of commercial evaluation. It was further stated that the terminology adopted by the USBM and the USGS, as released to the public, covering resources, was recognized as such. Mr. Grace also recommends that reserve calculations should allow for future losses in ore tonnage, ore grade, milling, and smelting. Unfortunately, it might take years to develop a prospect after it has been discovered. Mining methods have to be tested before being finalized in order to know what tonnage of ore is going to be lost, or how much dilution is likely to occur. The same problems are present in concentrating or in smelting. Operating mines usually know how mined grade compares with ore reserve grade. They can usually predict fairly closely what their final metal recoveries are probably going to be. It is, however, expecting too much to have to delay quoting reserves from say a recently drilled prospect. Any responsible mining geologist or mining engineer (or company for that matter) should state several things about an ore reserve calculation: that it is or is not a preliminary estimate only; that estimated grades have not been diluted to allow for a future, as yet unknown, mining method; that metal recoveries are or are not only tentative, based perhaps on drill hole samples only or on no metallurgical testing at all. Reserves of a partially explored prospect are always quoted when it becomes necessary to raise capital. If they are described as preliminary only (really just tonnage and grade estimates and not true "reserves") in addition to being accompanied by some of the items just mentioned, nobody is going to be misled. If, on the other hand, a report by a member of the SME or SEG is intentionally misleading, the individual must be reported and eventually disbarred from his or her society. To summarize, let us stay with the definitions of ore, ore reserves, and related terms as recommended and accepted by SME. I might add that on occasion I have used a fourth category in my ore reserve calculations, namely Geologically Possible Ore. This category is more or less the same as Inferred ore defined by the USBM and USGS. I have never given a grade to this category, which may be based only on geological mapping, geochemical sampling, or geophysical traversing.

Jan 8, 1985

By Christian F. III Baiz

Introduction A new mining agenda is before us. Born of government policies and world economies, the years ahead will show reduced growth. Metals, mining, and most other natural resource industries are inflation dependant and capital intensive. For these, a long period of contraction of outmoded and costly capacity will evolve. In some cases, this will be supplanted by new, lower cost capacity. But this will occur only if the cost of production - including cash operating and debt service costs - comes in at or below current market conditions. The industrial outlook for metals mining can be characterized as bearish. A US bank economist said mining companies planning their five-year forecasts should take current market conditions and straight-line them to the end of the decade. With low growth and low inflation, the real price of metals will remain flat or decline slightly. As a result, capital funding will be problematic. The low-cost producer will succeed. That means only the producer with low cash costs and low principal and interest costs per unit of production, will succeed. Gaining a perspective One must look back 30 years to see the evolution of the capital markets, for metal mine financing. This period can be divided into two economic periods. The 1950s were a time of stable economics. Mining companies earned and reported good profits. They had good corporate creditworthiness. In essence, mining companies of the 1950s were highly self-reliant. When equity infusions were needed, they were easily obtained. Financial management kept long-term debt low. Fixed rate, long-term financing was readily available in the long-term bond markets. The commercial banks of the 1950s were rarely used by the mining industry. When necessary, mining companies went to the banks for short-term financing - the kind that was needed for working capital requirements. Changing rhythms In the old rhythm there was an orderly market. Even into the mid-1960s, 75% of world annual copper production was controlled by eight companies: two in the UK, one in Belgium, and five in the US. During times of poor market demand, these producers would control supplies to the market. They took their losses out of retained earnings. Capital was easily restored during the ensuing good times. The new rhythm called for copper to be an economic means to a political end. Third World copper producers brushed aside the market fundamentals of commodity economics. Yet, the political solutions of these countries - their lack of response to the market - have seldom achieved their original objectives. Each commodity has its own old and new rhythm. Aluminum may have a similar rhythm, coming 10 to 20 years later than copper. By the late 1960s, changes were occurring. Inflation was on the rise. Ore reserve quality was falling. As a result, capital expenditures were necessary to maintain existing output. These costs created an increase in corporate leverage, thus adding to inflation and rising interest rates. Indicators A comparison of the gross national product (GNP) deflator index, consumer price index, and the metal mining deflator index is instructive. (Fig. 1 and Table 1). With 1972 equal to 1, note that the metal mining deflator reached its lowest point in 1967. From that point, the metal mining deflator has accelerated severely for 16 years. Only two minor downturns occurred during the business recessions of the mid-1970s and the early 1980s. In essence, Fig. 1 shows that while GNP has grown modestly, a miner's dollar in 1972 would require $3.48 in 1980. This is an almost 17% compounded growth rate over that eight-year period. Beginning in the late 1960s, for the first time in mine financing, the risk of success shifted from the corporate balance sheet to third parties. Limited-resource financings were taken up by banking syndicates that accepted certain of these risks. The lender needed to be well acquainted with the types of risks to be evaluated. These include resource quality and quantity, construction and completion, capital and operations costs, market risks, force majeure, and political and exchange rate risks. Project financings became the basis whereby mining companies were able to maintain their borrowing capacities. In essence, the lender was willing to share some of the project risk while only receiving lenders' returns on these investments. Over the last two decades, mineral project financings have become highly complex transactions involving multicurrency, multi-

Jan 8, 1985

By Gaither H. Kitchell

Introduction Fire assaying is an ancient method of determining the amount of gold and silver in geological materials. Today's commercial, mining, school, and private fire assaying laboratories still use this basic assaying method. One of the primary reagents used to collect gold and silver from the ore is litharge (PbO), or lead oxide. The Federal Occupational Safety and Health Administration's (OSHA) and the Nevada Division of Occupational Safety and Health's (OSH) have a lead standard. It states that a person exposed to airborne lead at concentrations greater than 50 µg/m3 (1.4 µg per cu ft) of air over an eight-hour period has gone beyond the permissible limit for health safety. It is not uncommon to get airborne lead concentrations of 1400 µg/m3 (40 µg per cu ft) in the flux/sampling area or 900 µg/m3 (25 µg per cu ft) around the gas/ electric furnaces during the fusion and cupelling phases. Therefore, any individual working in these areas for more than 30 days per year without proper protection is a likely candidate for lead poisoning. Lead In A Human Lead enters the body as a toxic substance by breathing it into the lungs and upper respiratory tract and by getting lead particles into the digestive system through ingestion. Smoking, eating, drinking, chewing tobacco and gum, or wiping a lead-contaminated hand across the mouth are all potential ways forgetting lead into the body. Lead taken in large quantities can actually kill a person in a matter of days. This is rare, however. The real hazard of lead overexposure is for the unsuspecting person who works in an unsafe lead environment for months or years. This individual can slowly receive damage, sometimes permanent, to the central nervous system, gastrointestinal tract, kidneys, blood, gums, and reproductive system. Safe Blood-Lead Level The Lead Standard states that the maximum safe blood-lead level is 40 µg/100 g (40 µg per 3.5 oz) of whole blood. It recommends 30 µg/100 g (30 µg per 3.5 oz) if a person is of child-bearing age. People not working around lead products normally have a blood level of less than 10 µg/100 g (10 µg per 3.5 oz). A person not adequately protected can exceed 40 µg/100 g (40 µg per 3.5 oz) in a few weeks by fire assaying only 100 samples per day per week. Studies show that some individuals have developed lead-related diseases with blood-lead levels less than 80 µg/m3 (2.3 µg per cu ft). Lead Poisoning Symptoms There is a long list of symptoms associated with lead poisoning. The most common are: a prolonged, sweet, metallic taste in the mouth; loss of appetite; anxiety and irritability; weakness and dizziness; nausea and tremors; and insomnia. Preventive Measures Based on the lead standard, a number of preventive measures can be taken to ensure that fire assay laboratory personnel frequently exposed to lead are protected against overexposure. First, the actual lead concentration within the assaying area should be determined. In Nevada, one can contact the Department of Industrial Relations, Division of Occupational Safety and Health for assistance in monitoring any laboratory. The agency will also recommend ways to protect against lead. This agency does the monitoring and provides an educational class on lead safety. This type of agency can be found in other states. Commercial consulting firms are also available, but they are expensive. Regardless of the technique used to determine lead concentrations, it is most likely that the average fire assay area exceeds the 50 µg/m3 (1.4 µg per cu ft) lead concentration limit. This is considered unsafe.

Jan 8, 1985

By Paul D. Tomlingson

Part two of this two-part series covers the use of an integrated information system with administrative information, including error and absentee reports as well as open work files. Part one (ME, July, page 650) discussed conceptualizing and developing a maintenance information system. It explained what information is needed to manage such a system.

Jan 8, 1985

By Steve Karl, Rock Jenkins

Continuing its objective of sharing new ideas, methods, theory, and engineering developments, more than 550 members of the underground fraternity gathered in New York City for the 1985 Rapid Excavation and Tunneling Conference (RETC). Since the first meeting in 1972, RETC’S aim has been to lay a foundation of tunneling experience on which the industry could expand and develop over the years. The RETC is jointly sponsored by the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the American Society of Civil Engineers, in cooperation with the Canadian Institute of Mining and Metallurgy, and the Engineering Institute of Canada. The 17 sessions included 72 papers that explored up-to-date practices in the mining and civil engineering fields. Session topics ranged from geotechnical and seismic design, through design, construction, and support of underground openings, to ground water control in shafts and mine openings. Case histories of tunnel boring machines and large diameter tunnel and underground openings were also reviewed. All the papers presented at the three-day conference are valuable additions to improving the state of rapid excavation. A few sessions, however, are particularly noteworthy as they are geared to the mining industry. The two volume proceedings of the entire conference are available from SME. (See ad on page 1003).

Jan 7, 1985

By Tim Neil, O&apos

The coming years should see moderate growth in the US coal industry. That growth may come at the expense of the oil and natural gas industries. Conoco pegs coal growth at 2% a year, until the year 2000. During that same period, Conoco projects only 0.5% annual oil growth and "a flat or negative trendline" for natural gas. This is compounded by the fact that coal has a delivered cost per Btu that is only half as much as it is for natural gas and only a third as much as it is for oil. So said Ralph Bailey to many of the 2600 attending the opening session of the American Mining Congress Coal Convention, May 12-15, in Pittsburgh, PA. Bailey is chairman of the AMC. He is also chairman of Conoco. While coal's projected growth is not spectacular, "it is in fact almost an assured growth," Bailey said. Weak oil and gas prices will likely prevent faster growth for US coal. Most of coal's increased demand will come from the electric utility industry and expanded steam coal exports. Conoco's study projects that domestic coal demand will be strengthened in the 1990s. By then, the present surge of nuclear power plant constuction will be over. And there will be a lack of acceptably priced, large-scale generation alternatives for utilities. "It is not likely that any electric utility is going to be ordering new nuclear reactors," Bailey said. "And as oil and gas supplies become scarcer and more costly, it is only logical that coal is going to fill the gap." At the same time, Bailey believes the US coal industry must find ways to lower its costs. He said cost excesses can be found in "regulatory overkill, labor, and simply bad habits" hidden by years of high inflation. "Those costs have now been laid bare, because we are going through a pe¬riod of disinflation. We have to put our house in order, particularly if we are going to compete in world markets." Bailey also touched on coal research. "The industry certainly accepts the fact that we must find a way to burn coal as cleanly as possible. A lot of work in that regard is going on. I expect there will be some significant break-throughs." Bailey said the coal industry is being squeezed this year. Last year, coal customers accumulated inventories in anticipation of a major coal strike that never materialized. Now, many utility customers are working down these inventories. So they are not taking deliveries on their coal contracts. But coal use is up in 1985, compared with 1984, Bailey said. So increased coal use, along with supply drawdown, should strengthen the coal market before the year is out, he said. After Bailey's presentation, some 100 speakers addressed policy and technical topics at 15 sessions during the four-day meeting. It was the first time since 1977 that the AMC Coal Convention has been held in Pittsburgh. And this year's attendance was up 40% from the last AMC Coal Convention held two years ago in St. Louis, MO. This year's registrants included 228 companies, 225 manufacturers, and 106 associated members. The only negative was the David Lawrence Convention Center. It was less than ideal. By turns, meeting rooms were too small, too cramped, or too far from one another. The session on longwall mining was so crowded that the doors were propped open so conference delegates could peer in. A concurrent manufacturers' forum session needed 50 more chairs to accommodate those wanting to attend. However, on to summaries of some of the presentations. Coal transportation and export Since Congress approved the 1980 Staggers Rail Act, railroad rates for hauling coal have not been excessive. In fact, rail rates for coal have increased less than 0.5% a year, in real terms, since 1980. Moreover, the market oriented principles written into Staggers are contributing to the improved financial and operational health of the nation's railroads. But no railroad is earning excessive profits. That is the gist of a coal transportation study being completed by the US Department of Energy. William Vaughan is DOE's assistant secretary for fossil energy. He affirmed the thrust of the upcoming report. Vaughan did allow that Interstate Commerce Commission (ICC) regulations on rate reasonableness could permit the railroads to exploit their monopoly power on captive shippers. Luncheon comments later made by Don Hodel confirmed Vaughan's comments on railroad rate justification. Hodel is Secretary of the

Jan 7, 1985

By Adam H. Zimmerman

Introduction Noranda, like similar businesses, is suffering the pain of previously unheard of currency relationships, a cost structure built in better days, and conditions of gross oversupply possible in almost any commodity. Indeed, it does seem like the worst of all possible worlds is out there before us. To understand a Canadian natural resource company, you must know how the country is organized. So far as natural resources are concerned, Canada is not Canada. Canada is 10 provinces and each own the resources situated therein. Thus, the conditions of extraction, exploitation, and operation are all set by the province, while the conditions of trade and currency are set by the Federal government. This means that what may be the rule in Newfoundland may not be the rule in Manitoba or British Columbia. The second thing is that the Canadian currency has been a satellite of the US dollar for a long time. This means that we hold the unenviable and unjustified position of being the country with the second strongest currency in the world. What this has meant to us is what it has meant to an American operator. Since 1980, a pound of copper fetches 214% more for a Chilean than it does for us and a pound of zinc 115% more for a Belgian. From an American point of view, Canada is favored because its dollar is valued at 25% to 30% less than the U.S. However, because of industrial indiscretions in years past, Canada has a locked in labor cost disadvantage that is very hard to cope with. Canada has a unique situation with its labor unions. Many of the unions are, or have been, internationals and therefore gained undue strength in early days. Canada has a third political party of socialist persuasion. It is entirely funded by dues from laor union members. Thus, we have a politicized workforce. And finally, we have a public service that has the right to strike. This had made the public service unions by far the strongest now in Canada. What this means to the mining industry is that there is somebody out there blazing the trail. The unrelenting power of these public service unions probably creates a climate more conducive to excessive wage settlements in industry than would otherwise be the case. Study, Work, and Pray So what do we do when times get tough? In simple terms, we study a lot, we work harder, and we pray a great deal. We study a lot in terms of learning hitherto unknown strengths and weaknesses of our products, processes, and operations. We work hard in the sense that we do everything possible to improve our productivity. And we pray a lot because, so far, anything else we have done has not been enough. Some years ago, Noranda recognized that its principal base and precious metal operations were diminishing. To provide for the future, we should branch out into other resource type operations. These might be countercyclical and also perhaps a little more permanent. For this reason, Noranda entered the potash, aluminum, and forest products businesses. This, of course, was a 'brilliant' strategy that was much applauded in its early days. We built an excellent potash mine, the smallest inte-

Jan 6, 1985

By R. A. Jankowsi, S. K. Ruggieri

Airborne respirable dust levels on longwalls can be reduced if operators approach the dust control problem in a logical and fundamental manner. This can be accomplished through the proper application and continued use of effective dust control techniques. The Bureau of Mines is currently assessing the effectiveness of longwall dust control techniques in use today to provide mine operators with guidelines for selecting the most appropriate control technology. This paper presents a fundamental approach to the problem of shearer dust control. Three dust control techniques to be discussed are: deep cutting/increased pick penetration for reducing the amount of respirable dust generated; drum water sprays/improved water supply system to suppress the amount of airborne respirable dust; and improved external water spray system, the "shearer-clearer," to push the dust close to the face. The techniques have been evaluated in field trials and have been shown to be both practical and effective in applications to control shearer generated dust.

Jan 6, 1985

By William A. Griffith

The recent recession has severely impacted the performance and results of virtually all of our natural resource companies. The depressing climate continues to linger and recovery maybe sometime away. Problems remain for resource companies in the steel and petroleum industries as well as the mining business. In February, at the AIME Annual Meeting in New York, an All-Institute session presented a variety of views on the situation. A. T. Yu, chairman of ORBA Corp., Mountain Lakes, NJ, organized presentations by top management personnel of four natural resource companies. This well attended session heard management strategems for the present and views for the future. A compilation and synthesis of these presentations, gathered by Dr. Yu, are presented here for ME readers. Leading off will be William A. Griffith, president and chief executive officer of Hecla Mining Co., Wallace, ID. Other speakers presented here include Wilfred P. Schmoe, executive vice president of Du Pont Co., Wilmington, DE; Frank W. Luerssen, chairman and chief executive officer of Inland Steel Co., Chicago, IL; and Adam H. Zimmerman, president and chief operating officer of Noranda Mines Ltd., Toronto, Ontario. First, then Griffith's remarks. Introduction The key to successfully managing a natural resource company in austere times is good management in good times. In other words, position the company during prosperous times to survive the times when the well dries up. Although we know how to manage properly, for various reasons we sometimes do not do it. We forget the lessons of history. We allow ourselves to be carried away by our egos. We fail to position our companies properly in good times. As a result, in bad times we find ourselves in deep trouble. We need constant reeducation in the things we already know. In the natural resource industries, proper positioning in good times involves becoming a low-cost producer, retaining the flexibility to pull in our horns, developing a lean and effective organization, and maintaining a healthy balance sheet. Nothing improves the chance of survival during austere times as much as being able to produce at a lower cost than your competitors. In our business, that means having low-cost mines - low cost because the ore bodies are high grade or favorably located, and because they are efficiently operated. It also means recognizing the competition. The key numbers are the cost to produce an ounce of silver or gold. Nothing else really counts. And our competition is every other precious metal mine in the world. Flexibility is important when one gets stuck with a high-cost operation, often because things do not work out as we expect. It is important to be able to shut down an operation quickly and easily, without high holding costs, and without disrupting the corporate organization. A lean and mean, effective organization of competent people is vital during bad times. A company will not have that if it is not developed and maintained during good times. Finally, a natural resource company has to develop a healthy balance sheet during good times if it is to survive the bad. Money in the

Jan 6, 1985

Diesel powered machines are doing some specific operations in the cyclic order required by the technical process. The dynamics of this process in certain conditions has an essential influence on environmental health conditions in the working area. The main purpose of this paper is to show, using computer simulation, how the movement (dynamic) of diesel vehicles effects environmental health standards and also how to determine the required air quantity for ventilation.

Jan 6, 1985