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By James Matlock

The announcement of a minable reserve of 13.6 Mt (16 million tons) averaging 0.9 g/t (0.027 oz per ton) Au and 2.4 g/t (0.71 oz per ton) Ag for the open pit-heap leach reserve at Red Mountain No. 3 in Ouray County, Colorado, by Cornucopia Resources in November 1985 brings another open pit-heap leach precious metal ore body to the production stage. With about 8.2 Mt (9 million tons) of waste and metallurgical studies showing acceptable recovery rates, low reagent consumption, and good final percentage recovery, Red Mountain is a discovery that will add to the precious metal inventory of the US. Frank Baumgaruler of Denver, CO, recognized the precious metal potential in Red Mountain No. 3 and acquired all of the old claims. James Matlock conducted a field reconnaissance over Red Mountain No. 3 independently of the Baumgartner activities and recognized epithermal alteration and mineralization in the Tertiary volcanics. He recommended acquisition of the ground and was able to obtain rights and drill six core holes for Amoco in 1982. Amoco drilled a further nine core holes in 1983, but then dropped the property. Cyrano Resources examined the data and through its consulting geologist, V.F. Hollister, acquired the rights dropped by Amoco. In 1984 Cyrano began further drilling of the ore zone demonstrated by Amoco but they were then acquired by Cornucopia Resources. Cornucopia completed development of the property and commenced the permitting process in 1986. The property was recognized as a disseminated gold deposit by both Baumgartner and Matlock, and both deserve credit for properly evaluating mineralized outcrop in the Tertiary volcanics. However, Cornucopia recognized the profit potential in the heap leach exploitation of the ores and de- serves credit for completion of premine feasibility studies. The discovery is clearly a geological one, but the premine engineering studies were essential to the conversion of the prospect to a commercial mining enterprise. The deposit lies on the circular bounding fault of the Silverton caldera. Two reprints follow that help understand the geologic setting of the ore controls.

Jan 1, 1990

By N. M. Levine

This work defines and systematizes the physical factors of the problem of leaching and demonstrates for the first time the utility of macropore volume, micropore volume, specific surface, pore size distribution and permeability as parameters of leaching based on a study of the recovery of uranium from the Top Black member of Chattanooga Shale.

Jan 1, 1962

By C. W. Davis

This paper is the second of a series of progress reports on a study, of the hydrometallurgy of manganese which is being conducted in an endeavor to make possible utilization of the large deposits of low-grade domestic manganese ores that occur in several States. There are at least four processes in which a knowledge of the action of SO2 gas on manganese oxides at elevated temperatures may prove of value. One ,of these involves dissolution of manganese from ores. The Bureau of Mines has investigated the hydrometallurgy of manganese by a process in which SO2 gas, a waste product at many smelters, is passed into water to form a solvent for manganese. Although Several manganese minerals acre readily dissolved, rhodochrosite (MnCO3) was attacked but superficially.§. Recent experiments have shown that a roast at 650 to 900°C converts the manganese of rhodochrosite to a form that is quickly dissolved by a weak SO2 solution. Introduction of smelter gases containing as much as 5 per cent SO2 during such a roast would not add much to the cost of the operation and might result in the formation of considerable water-soluble manganese sulphate.

Jan 1, 1930

By P. Soupios

Seismic geophysical methods have long been used by geologists and geophysicists to delineate subsurface features. These techniques work because different types and strengths of soil and rock transmit energy at different velocities. The Crosshole-Downhole tests (CH-DH) and seismic refraction survey (RS) are among the most used methods in engineering applications to obtain the elastic properties of subsurface layers. As a result, seismic methods have evolved into a cost-effective tool for rapidly determining depth to bedrock in engineering and construction projects. The seismic methods are best suited to sediment thickness analysis, bedrock quality determination and detection of the presence of weaknesses in the bedrock before the erection of any civil engineering structures such as bridges, tunnels, dams and portals. Seismic methods are also useful in estimating the rippability of bedrock ahead of construction. These methods are particularly useful for large-scale projects that require a significant number of drill holes, resulting in a substantial investment of time and costs for drilling. The CH-DH and RS methods are typically comparable in total cost to drilling, but provide significantly more information in 2-D and 3-D and therefore reduce the likelihood of conceptually oversimplifying the subsurface conditions. The above mentioned methodologies were considered to be the most appropriate geophysical methods for investigating the shallow structure and the dynamic soil properties of the area where the Ilarionas Dam is scheduled to be constructed. The main target of this work was to prove the potential of geophysical methods in providing accurate information to the civil engineer and to obtain information on the dynamic soil and rock properties for earthquake design analyses for the dam construction. Specifically, nine refraction seismic profiles and three cross-hole-downhole seismic tests were implemented to determine the subsurface conditions of the study area. The tests determined the shear and compression wave velocity profiles versus depth and other crucial parameters such as Young and Rigidity modules. Furthermore, they allowed the detailed 2-D mapping (along several profiles of the study area) of the subsurface variation of the soil and rock dynamic moduli.

Jan 1, 2006

By F. R. Lee

When the Bureau of Mines was established in July 1910, one of the problems immediately attacked by the new organization was the development of standard, for the design and testing of electrical equipment that could be used without fear of initiating fires and explosions in underground coal mines. Research and investigation by Bureau personnel, supplemented by the published results of similar work by European mining authorities, led to the establishment of standards or "schedules." which guide manufacturers ill the design of many types of electrically operated machines and devices used in underground coal Mining. By issuing these standards, Bureau personnel establish the requirements to be met by such equipment before it tan be approved by the Bureau of Mines as permissible for use in gassy coal mines. Every 2 years the Bureau of Mines publishes a list of equipment that leas been accepted as approved or permissible during the preceding 2 calendar years. This is done to inform the mining industry of the availability y of the latest equip¬ment for safe use underground.

Jan 1, 1964

By William R. Yernberg

Santa Fe Pacific Gold, headquartered in Albuquerque, NM is expanding its operation at the Twin Creeks Mine in Nevada. The $250-million sulfide expansion project, including the Sage Mill, is under construction and is 80% complete. Also, additional mining equipment has been purchased to haul the sulfide ore to the mill. With the expansion, employment at Twin Creeks is expected to reach approximately 970 people by the end of 1996. Santa Fe Pacific Gold now owns and operates three gold mines in the United States and is involved in several other gold projects. The three currently operating mines are the Twin Creeks, Mesquite and Lone Tree mines. The Mesquite Mine is located in California’s Imperial Valley. Lone Tree is located 55 km (34 miles) southeast of Winnemucca, NV. The company’s total gold production from these operations is expected to be in the range of 26.3 to 26.6 t (845,000 to 855,000 oz) in 1996. This compares to a total production of about 124 kg (4,000 oz) for the company in 1989. Production costs range from $6.90to $7.25/g ($215 to $225/oz). At the end of 1995, the company reported proven and probable reserves of 556.7 t(17.9 million oz) of gold.

Jan 1, 1996

By M. Kaya

This paper presents an experimental method to determine the degree of gangue entrainment in mechanical flotation cells and proposes new and inexpensive methods to lessen it. The applicability of froth washing and vibration was studied in laboratory, pilot plant, and plant scales. The effect of wash water on metallurgical performance was tested with various streams from the Falconbridge Strathcona mill at laboratory, pilot, and plant scales, with the 2nd cleaner at the Eastmaque Kirkland Lake mill, and with the 2nd and 3rd zinc and 3rd and 4th copper cleaners at Les Mines Selbaie mill. It was found that gangue recovery was closely related to water recovery in all systems. Wash water at an optimum superficial rate from 0.03 to 0.07 cm/s reduced entrainment by anywhere from 30X to 70X. Wash water can be further assisted by mechanical and ultrasonic vibration of the froth. A further rejection of 10 to 20X becomes possible. As a result of this work, a number of plants in Canada and in the United States have evaluated and/or are now using froth washing.

Jan 1, 1990

By Harold L. Walker

ENGINEERING educators have recently been discussing the advisability of extending the undergraduate curricula to five or six years, and a plan has also been proposed requiring a preliminary period of study in the liberal arts college before admission to the engineering college. Extension of the undergraduate curricula has been suggested as a means of more fully covering the subject matter in the major field of study. Interest in this proposed plan of requiring a preliminary period of study in the liberal arts college has been heightened through a bill recently introduced in the legislature of the State of New York. This plan intends to give a more professional status to engineering, and credit for these additional years of study would be allowed to those engineers applying for professional licensure. As a result of the interest in engineering curricula and due to the impetus given by these proposed plans a general reexamination of curricula has been conducted by a large number of schools with the stated purpose of determining if the present curricula are meeting the aims and scopes of engineering education.

Jan 1, 1940

By K. W. Edwards

The formulation of a theoretical basis for the evaluation of in-situ coal through the use of geophysical logs is outlined. This involved the development of an approach to the interpretation of resistivity in environments having multiple conductive and non-conductive components. Utilizing this approach and other conventional interpretation techniques, a program was developed yielding accurate determinations of the in-situ percentages of coal, water and ash for the evaluation of coal deposits. Basic information obtained from the CWA program can be utilized in numerous aspects of total mine planning . Some examples of the practical application of this method are included.

Jan 1, 1978

By AIME AIME

ARGUMENTS and discussions were not lacking either Wednesday or Thursday mornings, when the geophysicists got together. The first session, under the chairmanship of Paul Weaver, was devoted largely to theoretical papers, except for the first one by F. W. Lee, which was a progress report. This speaker mentioned some of the high lights of geophysical exploration during the last year, such as the recently announced extension of the Rand gold fields through magnetic exploration, and the continued activity in the oil fields of this country. Even this brought forth some disagreements, Paul Weaver feeling that credit was being given geophysics where it was not due for the discovery of certain oil fields. In this criticism Everette DeGolyer concurred, and both agreed that geophysicists must lean over backward when it comes to taking credit for discoveries. The troublesome question of interpreting resistivity curves is always being aired, and Lynn G. Howell's paper, presented briefly by the chairman, served to clear up a moot point raised last year by M. King Hubbert's work. By use of Maxwell's theory of images the author calculated that the effect of a thin, conductive sheet placed perpendicularly across the middle of a four electrode system should bring the resistivity curve up to a figure equivalent to the resistivity of the surrounding medium, but no higher. Variations from this he explained as being due to dirt on the surface of the sheet. The difficult question of interpreting three-layer curves was tackled bravely in Thomas Manhart's paper, presented in abstract by S. F. Kelly. The author seems to be attaining some success through dividing three-layer curves into two approximation curves of the two-layer type.

Jan 1, 1933

By N. Tiner

The mechanical properties of magnesium-alloy castings are greatly improved by grain refinement, and at present considerable attention is being paid to methods of obtaining fine-grained castings. One method of achieving this end is the use of proper melting and superheating techniques. These have been employed com-rnercially to a great extent, but no comprehensive study of the subject appears to have been published at present. Numerous investigations found in the literature include some reference to superheating techniques,1"4 and Achenbach, Nippcr and Piwowarsky,% ased principally on thermal analysis, ascribe the grain-refilling action of superheating to the influence of solid foreign particles or dissolved gases present in the melt upon the course of crystallization. The primary purpose of this paper is to present the principal facts concerning the cffect of superheating on grain size of magilesium alloys. .ittempts are also made to explain the experimental results in terms of a general hypothesis. The investigations are limited chiefly to common commercial casting alloys. In order to carry on this work, it was necessary to determine the factors influencing grain size and to develop a proper technique for the preparation of samples. Thc preliminary tests made by the author indicated that the grain size of magnesium alloys resulting from the solidification of a melt is determined by alloy composition, presence of impurities, rate of cooling during solidification, thermal history of the melt and to some extent the structure of the charge used. The rate of cooling is in turn dependent upon the mass of the melt, pouring temperature, and dimensions, properties and temperature of the mold into which the melt is poured. The final grain size of the alloys is still further modified by heat-treatment subsequent to casting. It is not within the scope of the present paper to discuss all of these factors, and it would suffice to note here that when equal amounts of magnesium alloys are prepared from the same alloying materials, melted in graphite crucibles under the same thermal conditions, then cast into graphite molds at a constant temperature, the resultant solids have the same grain size. By maintaining all other factors constant, it is thus possible to vary thermal conditions of a melt and to examine the grain size of resultant castings. Preparation of Samples and Grain-size TestiNg The alloys investigated in this paper were taken from ingots made by Permanente the Or or prepared by the author with pure carbothermic magnesium and necessary alloying elements. Melting was carried out under a flux in a graphite crucible heated uniformly by an

Jan 1, 1946

By N. Tiner

The mechanical properties of magnesium-alloy castings are greatly improved by grain refinement, and at present considerable attention is being paid to methods of obtaining fine-grained castings. One method of achieving this end is the use of proper melting and superheating techniques. These have been employed com-rnercially to a great extent, but no comprehensive study of the subject appears to have been published at present. Numerous investigations found in the literature include some reference to superheating techniques,1"4 and Achenbach, Nippcr and Piwowarsky,% ased principally on thermal analysis, ascribe the grain-refilling action of superheating to the influence of solid foreign particles or dissolved gases present in the melt upon the course of crystallization. The primary purpose of this paper is to present the principal facts concerning the cffect of superheating on grain size of magilesium alloys. .ittempts are also made to explain the experimental results in terms of a general hypothesis. The investigations are limited chiefly to common commercial casting alloys. In order to carry on this work, it was necessary to determine the factors influencing grain size and to develop a proper technique for the preparation of samples. Thc preliminary tests made by the author indicated that the grain size of magnesium alloys resulting from the solidification of a melt is determined by alloy composition, presence of impurities, rate of cooling during solidification, thermal history of the melt and to some extent the structure of the charge used. The rate of cooling is in turn dependent upon the mass of the melt, pouring temperature, and dimensions, properties and temperature of the mold into which the melt is poured. The final grain size of the alloys is still further modified by heat-treatment subsequent to casting. It is not within the scope of the present paper to discuss all of these factors, and it would suffice to note here that when equal amounts of magnesium alloys are prepared from the same alloying materials, melted in graphite crucibles under the same thermal conditions, then cast into graphite molds at a constant temperature, the resultant solids have the same grain size. By maintaining all other factors constant, it is thus possible to vary thermal conditions of a melt and to examine the grain size of resultant castings. Preparation of Samples and Grain-size TestiNg The alloys investigated in this paper were taken from ingots made by Permanente the Or or prepared by the author with pure carbothermic magnesium and necessary alloying elements. Melting was carried out under a flux in a graphite crucible heated uniformly by an

Jan 1, 1946

By Floyd D. Everett

The Cougar Spar property is in southwestern Beaver County, Utah, approximately 35 miles by road northwest of Lund, a station on the mainline of the Union Pacific Railroad (fig. 1). Original fluorspar discoveries on the property were made a. short time before 1941. During 1941 lessees produced approximately 600 tons of ores averaging 40 percent CaF2. Bureau of Mines engineers examined the property in 1942 and recommended development. Work was begun in December 1942 and completed in October 1943. The area was mapped by members of the Federal Geological Survey during the project period. Development included surface trenching; drifting, and crosscutting, a short distance below the outcrop. The surface work comprised a total of 440 linear feet of bulldozer and hand trenches. A total of 550 feet of workings was driven on the 100-foot level. Samples were taken for assay from the trench exposures and from the underground workings as work progressed. Pocks in the area of the Cougar Spar property are igneous and consist mainly of fine-grained tuff and quartz monzonite porphyry. The fluorspar mineralization occurs in a northwest fault zone.

Jan 1, 1951

By R. M. Santmyers

Caesium, rubidium, and lithium are sometimes described as the minor or rarer alkali metals. They generally occur together in nature, although, lithium is distributed more widely and is far more abundant than either of the other two. The chemical, and even the physical, properties of these three elements can best be considered In conjunction with the more familiar members of the alkali group, sodium and potassium. The five elements lithium, sodium, potassium, rubidium, and caesium show an interesting gradation properties from member to member with the increase in atomic weights. All are silvery white and soft enough to be cut with a knife. They tarnish rapidly in air and decompose water at ordinary temperatures. The lowest temperature at which the action of the several metals on water can be de¬tected is -98°C. for sodium, -105°C, for potassium, 108°C. for rubidium, and -116°C. for caesium. The chemical activity appears to increase steadily from

Jan 1, 1930

By Albert L. Toenges, Louis A. Turnbull, Alonzo W. Quinn, J. M. Schopf, Arthur Neale, R. F. Abernethy

"INTRODUCTION The fuel requirements for industrial and domestic consumers in New England, in normal times, are supplied almost entirely by fuel oil, anthracite, and bituminous coal. A shortage of these fuels occurred during the war. This shortage was caused by (1) The diversion of oil to military uses; (2) the use of railroad and boat facilities that ordinarily would transport coal for the transportation of war materiel; (3) the inability of coal mines to apply the increased demand for coal which resulted from the conversion from oil to coal by domestic and industrial consumers; and (4) the increased demand of war industries for coal. Because of this critical fuel situation, an investiga¬tion was made of possible sources of fuel nearer to points of consumption in New England. Meta-anthracite, which is a satisfactory fuel for some purposes, had been mined in Massachusetts and Rhode Island many years ago. However, the introduction of freer-burning anthracite and bituminous coal into New England markets resulted in the abandonment of these mines.The coal mined in the vicinity of Portsmouth on Aquidneck Island, Newport County, R. I., had been used successfully for smelting copper ore and for fuel. It is reported that this coal is less graphitic than the material mined at Cranston near Providence, R. I. The coal is meta-anthracite and does not burn freely. However, improved equipment for burning coal has been developed, and if minable reserves of meta-anthracite should be found, methods of burning it probably could be devised.The purpose of this investigation was to determine sources of additional fuel. Since meta-anthracite mined at Portsmouth had been used with some success, an investigation was undertaken to determine the characteristics and continuity of the beds in this area."

Apr 1, 1948

By H Pray, H. W. Russell, Paul D. MILLER

It is known that austenitic chromium-nickel steels that have free carbide in the grain boundaries are subject to intergranu-lar corrosion. It is difficult to detect such a susceptible condition in a fabricated article because present test methods require a sample section for examination and in most cases this is difficult to obtain. The question of the nature and prevention of intergranular corrosion in austenitic stainless steels has been ably discussed by Bain and co-workers1-3 and by other investigator4-10 The present methods of study subject samples to corrosive conditions in such reagents as the Strauss solution, a mixture of copper sulphate and sulphuric acid. Such tests usually require at least 72 hr. to run. Various methods of measuring the degree of sensitization have been employed, such as the measurement of electrical resistivity, magnetic measuremerits, measurement of the degree of cracking produced on bending over a malldrel, and microscopic studies. The detection of carbides at the grain boundaries by metallographic polishing and etching methods is tedious and requires a skilled operator. A recent report on such methods of carbide detection is given by the American Society for Testing Materials Subcommittee VI of Committee A.-1011 and by Arness.12 The present investigation was undertaken to develop a simple test procedure for detecting carbide precipitation or susceptibility to intergranular corrosion. The test is designed for use in the plant and for the testing of fabricated structures. Carbide precipitation, the factor leading to susceptibility to corrosion, is produced by heating the alloy in the temperature range 800° to 1600°F., as in welding, in improper annealing or in service where such temperatures are met. The connection between such precipitation and susceptibility to corrosion has been thoroughly discussed, as has been the use of stabilizing addition elements to prevent precipitation. Experimental Method A small area of the steel under test is subjected to an anodic treatment in a cell that can be 'lamped Onto a a Or an actual structure. The cell and electrical circuit used are illustrated in Fig. I. The cell C is lead, joined to the steel plate D and insulated from it by a short piece of rubber tubing E. The cell is forced tightly against the steel plate by a spring Or clamping device. The seal formed by the rubber against the steel plate is sufficient to retain the liquid bath inside the cell. The spot treated can be made any shape desired, depending on the shape of the rubber gasket. The cell illustrated polishes a circular spot about 3/8- diameter' The bath consists of 60 per cent (by weight) sulphuric acid to which is added 5 ml. per liter of Glycyrrhiza extract (U.S.P.). The cell requires about 2 to 2.5

Jan 1, 1941

By H. W. Russell, H Pray, Paul D. MILLER

It is known that austenitic chromium-nickel steels that have free carbide in the grain boundaries are subject to intergranu-lar corrosion. It is difficult to detect such a susceptible condition in a fabricated article because present test methods require a sample section for examination and in most cases this is difficult to obtain. The question of the nature and prevention of intergranular corrosion in austenitic stainless steels has been ably discussed by Bain and co-workers1-3 and by other investigator4-10 The present methods of study subject samples to corrosive conditions in such reagents as the Strauss solution, a mixture of copper sulphate and sulphuric acid. Such tests usually require at least 72 hr. to run. Various methods of measuring the degree of sensitization have been employed, such as the measurement of electrical resistivity, magnetic measuremerits, measurement of the degree of cracking produced on bending over a malldrel, and microscopic studies. The detection of carbides at the grain boundaries by metallographic polishing and etching methods is tedious and requires a skilled operator. A recent report on such methods of carbide detection is given by the American Society for Testing Materials Subcommittee VI of Committee A.-1011 and by Arness.12 The present investigation was undertaken to develop a simple test procedure for detecting carbide precipitation or susceptibility to intergranular corrosion. The test is designed for use in the plant and for the testing of fabricated structures. Carbide precipitation, the factor leading to susceptibility to corrosion, is produced by heating the alloy in the temperature range 800° to 1600°F., as in welding, in improper annealing or in service where such temperatures are met. The connection between such precipitation and susceptibility to corrosion has been thoroughly discussed, as has been the use of stabilizing addition elements to prevent precipitation. Experimental Method A small area of the steel under test is subjected to an anodic treatment in a cell that can be 'lamped Onto a a Or an actual structure. The cell and electrical circuit used are illustrated in Fig. I. The cell C is lead, joined to the steel plate D and insulated from it by a short piece of rubber tubing E. The cell is forced tightly against the steel plate by a spring Or clamping device. The seal formed by the rubber against the steel plate is sufficient to retain the liquid bath inside the cell. The spot treated can be made any shape desired, depending on the shape of the rubber gasket. The cell illustrated polishes a circular spot about 3/8- diameter' The bath consists of 60 per cent (by weight) sulphuric acid to which is added 5 ml. per liter of Glycyrrhiza extract (U.S.P.). The cell requires about 2 to 2.5

Jan 1, 1941

By Lyman H. Hart

Some of the significant facts that will affect the supply and demand for metals during the next few decades are given in this presentation. This is important because the only hope for intelligent guidance of the national destiny depends upon presenting a consistent and accurate picture of basic problems. The metals problems now fomenting are only slightly less important than those precipitating the energy crisis. Admittedly, it is difficult to generate serious thinking on this subject when the world is enjoying easy access to all metals at modest prices. This is possible because of the current world capacity to over-produce, and United States credit standing, at least up to now, has permitted buying freely on world markets. Although both these vital conditions are subject to change, there is little doubt that if the U.S. financial house is kept in order, we can muddle along for a while on a generally expanding, metal-based economy. But should our credit standing be permitted to collapse, or should there be a tightening of world supplies of metals, the nation would immediately find itself in trouble. Unfortunately, clear signals indicate that both of these conditions are threatening. The metal age started many centuries ago, and with the exception of the noble metals, barely a dent was made in world reserves until the present century. Then, as a result of the pioneering ideas of D. C. Jackling and Paul Gemmel, and the willingness of the McNeals, Penroses and Guggenheims to back ideas with money, a virtual explosion of metal production was propagated throughout the world. It is important to examine the causes of this expansion to determine whether it is a trend that may be sustained or whether it is anomalous and therefore attributable to circumstances not likely to be repeated or continued. This period of plenty is a once only phenomenon. Vast metal resources have been sitting around here for eons, while the world was unaware of or unconcerned with their existence. But when population began to grow exponentially, and ways were discovered to use metals to develop machines to do the work of men and animals, the exploitation of raw materials increased at a staggering rate. And now the realization is dawning that minerals are a wasting asset and are beginning to present supply problems that should begin to be of concern. Two main factors have caused this condition; One is the population growth, and the other is the expanding demand for irreplaceable raw materials as nations become more developed. A group of systems analysts, at Massachusetts Institute of Technology in a book Limits of Growth, has warned that at present rates of population growth and resource consumption together with environmental constraints, a point will be reached within 100 years when the world population will become totally incapable of supporting itself. The authors conclude that this end result could be avoided if a planned equilibrium could be established at a lower rate of population growth and resource consumption. Fortunately, there is evidence that the population problem is moderating. The growth rate in the U.S. has decreased from 2.3% per year in 1900 to 1.1% in 1970. But, even at the lower rate, population will double in 70 years. The world rate is greater, and if it continues, world population will rise from 3.5 billion to nearly 10 billion in 50 years. All of these projections are questionable because the dangers of growing population are now being recognized. A marked decrease in growth rate has been noted in the more developed countries-in fact, it was zero in the U.S. in 1972. The other factor affecting consumption of raw materials is the increase in per capita use of most items as individuals become more affluent. Many economists believe that developing countries such as China and India represent a vast future potential market; but there are others, with whom the author agrees, who believe over-population tends to stagnate development. Nevertheless, it is a fact that vigorously developing societies increase consumption at a rate far above their population growth rate.

Jan 1, 1974

By William J. Potter, Roger N. Pyle

Introduction The primary ingredient for survival of mining companies during a recessionary period is to be innovative and resourceful in the structuring and financing of operations. Over the past decade, many mining companies have had to retrench and restructure their operations and to redeploy their assets just to survive. During the same period, traditional sources of financing for mining companies -- commercial banks, subsidized export credit loans and long term straight debt financing in the public markets -- became less available and more expensive. Meanwhile, new markets and new financing instruments provided new alternatives for mining companies. Those companies which exploited these alternatives greatly enhanced their capacity for survival and even for profitability. This article considers the strategies adopted by some companies to adapt to changes in this recessionary environment; the inadequacy of traditional sources of financing; certain of the new financing instruments, structures and markets which have become available; and how several mining companies have utilized these new instruments, structures and financial markets to improve their competitive positions. THE IMPACT OF RECESSION ON MINING COMPANIES AND TRADITIONAL FINANCING SOURCES In its 1983 year-end article "The New Economic Order" Mining Journal characterized many of the large private sector mining companies with operations in the industrialized countries as being "gripped between the jaws of high working costs and stagnating metal commodity prices." The article went on to characterize the Canadian mining industry in particular as being "in the difficult position of having to seek to sell the bulk of its output in a world market characterized by over-capacity, where production costs were determined by internal political and economic factors while prices were set by external competitive forces of supply and demand." Miners of a wide range of commodities in the industrialized countries have come to realize that their domestic mineral resources are in many cases no longer competitive with global sources of supply. To compete and survive they would have to rely on their technical and financial expertise in mineral exploration and development and in mining and processing. Strategies For Survival Global competition has compelled management in the extractive industries to improve their worldwide cost position. This is the only means whereby a mining company can differentiate its product and attain a substantial competitive advantage. During the past decade, for example, ASARCO Inc. and Inco Ltd. chopped their payrolls, postponed expansion plans and otherwise retrenched. ASARCO reduced its capital expenditures and cash requirements for operations in 1984 to a level almost equal to its internally generated cash. The company's finances were also strengthened by increasing total lines of credit from outside sources, by selling common stock, and by reducing annual pension funding through a change in actuarial assumptions. Other companies returned to their traditional organizational structure where they had a demonstrated competitive strength. Consolidated Gold Fields, for instance, resumed its operation as a mining finance house. Its capital investment programs are now devoted solely to resource development. In mid-1984, at a time of firming zinc prices, Union Miniere S.A. used the opportunity to integrate its smelting capacity and to direct investment to certain subsidiaries at the expense of less viable operations. Smaller corporations realized that it was not enough just to be the low-cost producer. For example, Drummond Coal Company in Alabama, which dominates its regional market due to its low-costs, has also developed a world-wide trading capability and has placed incremental tonnage from its own mines as well as brokered coal produced by others, thereby minimizing capital risk. In Canada, Campbell Resources has exploited difficult times by acquiring assets cheaply. In the process it improved its capacity to withstand cyclical economic swings by diversifying from solely a copper and gold producer to a company based upon asbestos, coal, copper, gold and natural gas.

Jan 1, 1985

By R. W. Michelson

The Bureau of Mines developed computerized mathematical models to estimate the economic availability of Mesabi Range taconite concentrates; these are a quality model, a cost model, and an economic availability model. The quality model evaluates metallurgical test data; the cost model determines iron unit cost from mining and processing cost data; and the economic availability model determines quantity from geologic and ore quality data. By correlating all of the physical resource quality factors and dimensional characteristics with the economic cost factors associated with producing iron ore pellets, these three models combine to establish a final relation between iron ore reserve quantities and iron unit cost.

Jan 1, 1970