Search Documents

By Staff

Minerals contribute to U.S. gross domestic product (GDP) at several levels ? from mining and processing to the manufacturing of Anished products. In 2009, the estimated real GDP of the United States decreased by 2.4 percent compared with, and the estimated nominal GDP was about $14.2 trillion (Table 1). Trends in various sectors of the domestic economy are often reflected in mineral production and consumption rates. In 2009, the continued decline of the housing market was reflected in reductions in the production and consumption of cement, clays, construction sand and gravel, and crushed stone (those mineral commodities that are used almost exclusively in construction). Production of mineral commodities associated with the manufacture of goods for the housing market, such as ceramic tile, heating and air conditioning equipment, paint, plumbing and sanitaryware, roofing, wiring and wallboard also decreased. Declines in auto-mobile manufacturing resulted in reduced production

May 1, 2010

By Ping Zhang, Xu Ma

Perturbations arising from mining operations significantly affect the stability of rock masses, and the influences aggerates with the rapid increase of mining-operation depths during recent years. The subsurface structures with major discontinuities subject to seismic hazards resulted from the shear-slip behaviors of rock masses. In order to identify the shear-slip regime of discontinuities and calculate seismic moment and seismic energy involved with shear-slip behaviors, we use discrete element modeling to study the shear slip failure along discontinuities in an underground mine. The recorded characteristic and properties of sub-contacts in DEM provide a basis for computing and visualizing the temporal and spatial distribution of seismic moment and seismic energy with mining operations. We computed the seismic energy and seismic moment using the numerical modeling method and the analytic method. We compared the result of summing seismic energy and seismic moment from the subcontacts of numerical models and the result of the analytic method. We confirmed that this tool can be used in comparative analyses. We also found that seismic moment and seismic energy, associated with shear stress drop and shear displacement increase, accumulate in the vicinity of major discontinuities. Mining operations at a greater depth cause greater changes of seismic moment and seismic energy, leading to a higher risk of inducing seismic hazards. Quantifying seismic potential using discrete element modeling can greatly facilitate the investigation of instability of geological discontinuities and thereby can help estimate the potential of seismic hazards.

Jan 21, 2023

By Laura Suarez, Jörgen Kajberg, Pär Jonsén

In recent years, slag, a residue from pyrometallurgical processes, has become more attractive in circular economy frameworks to increase the efficient use of resources throughout the life cycle of steel products and help in the reduction of carbon emissions. Its applicability is strongly dependent on the particle size, and therefore, the optimization of breaking processes should be approached by increasing the knowledge of the dynamics of slag to promote fracture. Increasing the knowledge on themechanical response ofmanganese slag opens up the potential for the development of cost-effective numerical models, e.g., constitutive models based on inverse engineering calibration frameworks or digital twins. In this study, rate-dependent tests of manganese slag have been performed using a split Hopkinson pressure bar device for testing its dynamic mechanical response. In order to obtain information about the crack initiation and fracture process, 2D ultra-high speed imaging was implemented with a sampling frequency of 663,200 fps for diametrically loaded specimens. Full-field deformation measurements using digital image correlation (DIC) techniques showed a staggered fracture process where failure points on mechanical response curves vary due to the internal events happening in the material. Localized frictional occurrences and inertial effects acting inside the pre-cracked matrix have a strong effect on the global mechanical response, and therefore, a great variability of strengths was obtained.

Nov 3, 2023

By Nasser Madani, Yerbol Tussupbekov, Sergei Sabanov, Zarina Mukhamedyarova

A case study was conducted on a metal mine operating in Kazakhstan, in which problems were associated with use of a complicated and outdated ventilation system and its high expenses. The mine needs to reconsider its existing ventilation system and identify the risks associated with operational losses when using this ventilation system. The aim of this study was to develop an efficient risk analysis method capable of estimating operational risks and financial benefits of the existing mine ventilation system. The developed risk analysismethod considers ventilationmodelling, riskmodelling, and financialmodelling.Ventilation modelling comprises ventilation simulation and ventilation financial simulation. In risk modelling, the number of risk events occurring with the use of existing ventilation system and the operational losses during these events is estimated. Financial modelling considers operational losses and ventilation financial simulation benefits and uses a dynamic cash flow model to estimate how cost variability influences the cash flow. As a result, the improved ventilation system attains an additional NPVa ranging from 3.2 to 8.5 million US$ at the corresponding defined probability of 90%. The results of this study reveal that the developed risk analysis method can efficiently estimate the financial benefits of ventilation modelling and consider risk events and their total operational losses associated with use of the existing ventilation system. This approach provides a range of possible outcomes and helps with deciding whether the ventilation system is appropriate or whether it should be updated to better suit the project financial benefits.

Jun 3, 2020

By Zhian Liang, Xiong Huang, Weixin Wu, Lifeng Cui, Zhuanhua Wei, Guoyao Li, Xiao Ni, Junrong Wang, Shuiping Zhong

ZJ 201 (modified starch) is a non-toxic, odorless, and biodegradable polymeric depressant, which selectively depressed galena in batch flotation tests while chalcopyrite was not significantly affected. In a plant trial, copper-lead separation was successful for the first time without using dichromate. Moreover, the plant process could be changed to sequential Cu-Pb flotation using ZJ 201 for higher grade lead concentrate. A copper concentrate was obtained with a Cu grade of 24.91% and a Pb grade of 5.11%, which recovered 76.6% of the copper from the original ore; a lead concentrate was also obtained with a Pb grade of 21.90% and a Cu grade of 5.31%, which recovered 52.6% of the lead. In addition to the effective copper-lead separation observed in the plant trial, another improvement observed is that gold was recovered mostly in copper concentrate, which could be sold for higher prices. Au grade reached 230.64 g/t, and its recovery reached 65.8% in the copper concentrate. Au grade in lead concentrate was only 18.90 g/t.

Aug 27, 2021

By O. A. Orumwense

The liberation of intimately disseminated impurities from the coal matrix often demands that the material be ground to a high degree of fineness. Similarly, some technologies for coal utilization require superfine particles (i.e., sizes less than ten microns). This implies additional costs for coal preparation plants due to the high energy and media costs associated with fine grinding operations. Besides, there are problems such as sever product contaminations due to media wear and impairment of the quality of coal. Hence, proper choice of grinding media type is important from the viewpoints of cost reduction and product quality.

Jan 1, 1993

By A. Juganda, F. WILSON, H. PINHEIRO, N. SANDOVAL, J. F. Brune, G. E. Bogin Jr.

To evaluate methane explosion hazards in longwall coal mines, a CFD model was developed along with a 1/40th-scale, optically accessible model of an underground longwall coal mining section. In this project, CFD models assisted in the design of the physical model to ensure specifications were met for accurately representing the scaling physics as well as to assist in narrowing the experimental matrix and identifying key locations for sensor placement to measure velocity, pressure, and gas concentrations. This research will help develop strategies for methane monitoring that prevent methane ignitions and explosions in longwall coal operations.

Aug 15, 2022

By William H. Mount

Since the late 19405, St. Joe has operated rubber-tired, trackless mining equipment underground in its Southeast Missouri Lead Belt operations. At first, the trackless equipment was operated in conjunction with rail haulage equipment in the room-and-pillar operations, but was to later replace rail haulage completely. The first pieces of equipment to travel on pneumatic rubber tires were short-haul shuttle cars of 12-ton capacity hauling rock from the heading to the mainline railroad. Early-model drill jumbos were the next pieces of production equipment to be carried on rubber, along with mobile slusher ramps. Mobile diesel equipment, in the form of conventional rear-dump trucks, made its appearance underground in the early 1950s, introducing the era of relatively high-speed mobile equipment as compared to the electrically powered shuttle cars. Haulage distances for rubber-tired vehicles were no longer dictated by trolley lines and trailing cables and tires were subjected to increasingly severe applications. St. Joe's first completely trackless mine, the Hayden Creek Mine, was opened in 1952, employing rubber-tired drill jumbos, electric shuttle cars, and for the first time, an articulated diesel truck consisting of the tractor unit of a conventional earthmoving scraper and a rear-dump rock wagon. Those machines rolled on the first true earthmover tires to be used underground by St. Joe. The articulated truck concept proved to be very successful, and constitutes an In- creasing portion of the underground haulage today.

Jan 1, 1975

By Josef Arnold, Norbert Fuegenschuh

The “Eggequerung” is an important part of the German Railway’s (Deutsche BahnAG) modernized Dortmund—Kassel line. The heart of this 13-km-long (8 miles)construction lot is the double-track Egge Tunnel with a total length of 2,880 m(9,450 ft.). The tunnel was driven using the New Austrian Tunnelling Method (NATM).The construction contract also called for a reinforced concrete secondary lining, guaranteed for a full water pressure of 30 m (100 ft.) water column. Preliminary geological study already showed that very problematic geological-hydrological conditions would have to be expected. This talk describes the chosen NATM driving concept that was adapted to the prevailing geological and hydrological conditions, the special driving method applied in geologically difficult zones as well as the water control concept used during driving. The flexibility and the limits of the NATM under exceptional hydrological conditions are illustrated. Also described are reinforced concrete lining works for the watertight secondary vault (reinforced concrete secondary lining without water-proofing membrane).

Jan 1, 2003

By Gregory Beckstrom

"During a year of challenges in the mining industry, two groups collaborated Aug. 17- 20 for a joint conference on industrial minerals of the Upper Midwest. Hosted in Minneapolis, MN, the 4th Annual SME Twin Cities technical conference and the 51st Annual Forum on the Geology of Industrial Minerals (FGIM) drew attendees from throughout the United States and Canada.Highlights of the event included a one-day field trip on Aug. 17 to a crushed stone and gravel mining and processing operations near the Twin Cities, followed by a visit to a historic mine tunnel within the St. Peter sandstone formation. The latter was used as a speakeasy during America’s prohibition era. A two-day field trip on Aug. 19-20 made stops in central and northeastern Minnesota at a granite quarry and processing plant, a peat harvesting and packaging plant, an iron mine and taconite processing plant, and a silica sand storage and loading operation. In a nod to one of Minnesota’s celebrated luminaries, the group also stopped in Hibbing to visit the boyhood home of Robert Allen Zimmerman, better known to the rest of the world as Bob Dylan.A full-day technical program featuring talks on environmental impacts of silica sand mining, regulatory updates, mine land reclamation and methods for identifying construction material failures (alkali-silica reaction) was bookended by the two field trips.According to Minnesota state geologist Harvey Thorleifson, the keynote speaker of the technical program, “This joint SME and Forum on the Geology of Industrial Minerals conference is a reflection of the important role of the mining industry in society, of the important role that partnerships play, and of the prominence of industrial minerals on the Twin Cities region and iron ore on a national scale.” He added, “While this is a tough year for the mining industry in the region, we are confident in the strength of the profession and the industry in the medium term, as we anticipate a superb SME national conference in Minneapolis in 2018.”"

Jan 1, 2015

Smart defense: that?s what the industry needs to play for the next four years, according to panelists at the 118th Annual Meeting of the Northwest Mining Association (NWMA), which met December 2-7 in Spokane, WA. The conference was well attended, with approximately 2,200 attendees, 244 booths in the two packed exhibition halls, and a rich offering of short courses, field trips, social events and technical sessions. Speakers at the packed legislative session articulated many of the frustrations felt by members of the mining community after the U.S. elections in November, and offered words of advice. Matthew Ellsworth, the new Government Affairs hire at NWMA, stated it best: ?Elections are like Christmas: you find out who?s naughty and nice ? and it?s always going to come again.?

Jan 1, 2013

By M. L. Harris, J. Organiscak, S. Klima, I. E. Perera

"The National Institute for Occupational Safety and Health (NIOSH) Pittsburgh Mining Research Division (PMRD) conducted underground evaluations in an attempt to quantify respirable rock dust generation when using an untreated rock dust and a rock dust treated with an anti-caking additive. Using PDM 3600s and 3700s, these evaluations measured respirable rock dust levels arising from a flinger-type application of rock dust on rib and roof surfaces. Rock dust with a majority of the respirable component removed was also applied in NIOSH’s Bruceton Experimental Mine (BEM) using a bantam duster. The respirable dust measurements obtained downwind from both of these tests are presented and discussed. This testing did not measure miners’ exposure to respirable coal mine dust under acceptable mining practices, but indicates the need for effective continuous administrative controls to be exercised when rock dusting to minimize the measured amount of rock dust in the sampling device. INTRODUCTION Two factors have combined to renew concern regarding respirable dust measurements and compliance. This renewed recognition is due to two regulations that have modified operators’ rock dust schedules. First, the 80% incombustible requirement in intake entries has increased both on-section and outby-the-section rock dusting. Secondly, the recent respirable dust regulation change that has increased the number of respirable dust samples taken per sampling cycle. Previously, when only 5 samples were needed bi-monthly, rock dusting could be scheduled to not interfere with the respirable dust sampling schedule. The significant number of samples now required under new regulations combined with the need to maintain 80% total incombustible content in active mining areas require the schedules for respirable dust sampling and rock dusting to intermix. This raises concerns about the amount of rock dust that potentially is included in the sampler weight gain. Additionally, the respirable dust maximum was lowered from 2.0 mg/m3 to 1.5 mg/m3 (effective August 1, 2016) increasing concern that rock dust contamination may be an issue. Currently, the acceptable practice is to apply administrative controls such as keeping the miners upwind during rock dust application or to schedule rock dusting during a maintenance shift when the number of miners present is lower. NIOSH’s research examining the quality of rock dust has led to the development of hydrophobic rock dusts."

Jan 1, 2017

By G. ALBORNOZ, S. Utili, A. AGOSTI, C. VALDERRAMA, R. PELL, N. Morales

The steepness of the slopes of an open pit mine has a substantial influence on the financial return of the mine. The paper proposes a novel design methodology where overall steeper pitwalls are employed without compromising the safety of the mine. In current design practice pitwall profiles are often planar in crosssection and the profile in between ramps especially tend to be planar and defined by a constant inter-ramp angle. Sometimes rock layers exhibiting different strengths require the inclination of the profile to vary with depth, but the inclination across each layer is usually constant. Here instead, a new geotechnical software, OptimalSlope, is employed to determine optimal pitwall profiles of depth varying inclination. OptimalSlope seeks the solution of a mathematical optimization problem where the overall steepness of the pitwall, from crest to toe, is maximized for an assigned lithology, geotechnical properties and Factor of Safety (FoS). Bench geometries (bench height, face inclination, minimum berm width) are imposed in the optimization as constraints which bind the maximum local inclination of the sought optimal profile together with any other constraints such as geological discontinuities that may influence slope failure. The obtained optimal profiles are always steeper than their planar counterparts (i.e. the planar profiles exhibiting the same FoS) up to 8 degrees depending on rock type and severity of constraints on local inclinations. The design of a copper mine is first carried out employing planar pitwalls, secondly adopting the optimal pitwall profiles determined by OptimalSlope. The adoption of optimal slope profiles leads to a 34% higher net present value and reductions of carbon footprint and energy consumption of 0.17 Mt CO2 eq and 82.5 million MJ respectively due to a 15% reduction of rockwaste volume.

Mar 2, 2022

By R. Benito

The publication of the Lerchs Grossmann paper in 1965 outlining a threedimensional graph algorithm for ultimate pit definition set the standard for the mining industry regarding pit optimization. Although the algorithm provides a solution from a static standpoint (i.e., assumes instantaneous mining), it is widely used for commercial packages to generate ultimate pit limits and intermediate phases. However, the solutions delivered are presented in canned reports lacking connection to the original data, which prevents further data analysis and extended reporting. The approach presented in this paper attempts to overcome such barriers by performing openpit optimization through databases. An adaptation of the Lerchs Grossmann graph algorithm is used to generate nodes, arcs and tree structures in customized tables to determine the maximum closure of a graph.

Nov 1, 2013

By August E. Vandale

I speak to you today on the subject assigned to me, "Subsidence - a Real or Imaginary Problem", as a representative of Consolidation Coal Company (a wholly owned subsidiary of Continental Oil Company). The information I relate to you is our experience in the Pittsburgh Coal Company Division of Consol and covers the Pennsylvania properties and mines with particular emphasis on the mines in the south- western portion of the State or in the immediate vicinity of Pittsburgh, Pa. Mining of Freeport and Pittsburgh seams of coal in the Pittsburgh vicinity dates back over one hundred years. Consol, or its predecessor, Pittsburgh Coal Company, has been actively engaged in mining in the area since Pittsburgh Coal Company was organized in 1900. Pittsburgh, Pennsylvania came into prominence as the Steel City largely because of the vast reserves of high grade metallurgical coal readily available in the immediate vicinity and also because of its favorable river transportation. Early in the 1900's we operated over 100 small coal mines, with operations located in the Counties of Allegheny, Fayette, Washington, Westmoreland. We have also operated mines in Somerset and Greene Counties. Titles in Pennsylvania can be in three estates: (1) title in fee, (2) title to the mineral, (3) mining rights permitting the removal and extraction of the mineral with or without waiver of surface damage. Consol has over the years acquired good legal title to the coal lands purchased from individual farm owners, with good broad mining rights, and in 98% or more of its title has a complete waiver of surface damage or the right to subside the surface land. In the early days of our Company, individual coal farms were purchased from land owners. Many of these titles severed the coal estate from the in fee title and good mining rights with waiver of surface were conveyed in the original severance deed. Thus, minable coal reserves were put together by the purchase of the coal under many individual farms in an area. In the early years, the mines practiced hand dug mining - later going to mechanical cutting with hand loading of the coal. Systems used were entry driving with room and rib panels. We have practiced full recovery mining as far as practical during the years of hand loading, as well as in the later years when the mines were mechanized. Mining system layouts, methods and procedures have changed from time to time to keep pace with improved mining machinery and new inovations, such as roof bolting and rubber tired haulage.

Jan 1, 1967

By R. Shields

"Hard rock mines move large volumes of material. But the conveyors essential to this movement suffer lots of problems, including carryback, spillage, dust, and belt wander. Many of these issues are created at the transfer points where the belts are loaded. This presentation will start with an overview of the latest transfer point systems that incorporate safety and serviceability by design. It will then report on recent projects. One project is the Conveyor B Transfer at the Coeur Rochester silver mine near Lovelock, Nevada. Here performance was improved with the installation of belt support cradles, engineered chute walls with external wear liner, and a compact dust collector. A second project is the improvement of belt support idlers and skirtboard sealing in a long loading zone of a conveyor under the concentrator at an Arizona copper mine. THE IMPORTANCE OF TRANSFER POINTS Conveyors are essential in mine material handling. Their performance will often make the difference in mine productivity and profitability. A key to conveyor performance are the transfer points where the conveyor belt is loaded and discharges. At these transfer points, many of the problems encountered with the conveyor system are created. The problems that arise at the transfer stations include off-center and segregated loading, mistracking, blockages and plugging. And there are a variety of problems originating with fugitive material—cargo released in the form of carryback, spillage, or airborne dust—that are created or exacerbated in the transfer points. These fugitive materials turn into other conveyor-related problems, including shortened component life, unplanned outages for conveyor maintenance, unexpectedly high labor costs for maintenance and cleanup, worker health and safety problems, and issues with community relations. As estimate attributed to the U.S. Mine Safety and Health Administration (MSHA) notes that 85 percent of conveyor maintenance is a result of fugitive material at conveyor transfer points. TECHNOLOGIES TO IMPROVE TRANSFER POINTS A number of techniques to improve the performance of conveyor transfer points have been developed. They include: • Absorbing impact, to prevent damage to belt, belt support systems, and conveyor structure, and reduce spillage caused by the impact energy arising from long material drops or large lumps of material loaded onto the receiving belt. • Stabilizing the belt line, to eliminate sag that allows spillage and encourages material entrapment that can damage the belt. • Protecting the skirtboard seals, by sheltering the sealing strips from the mass of cargo pushing material toward the edges of the belt. • Using self-adjusting, multiple-barrier edge seals, to keep material on the belt by providing long-lived seal efficiency with minimum maintenance requirements. • Controlling and centering the belt’s path, to eliminate belt wander and the spillage and damage it can cause. • Allowing dust to settle, through the incorporation of chutework that provides expanded stilling zone and the use of dust curtains at the points where the belt enters and exits the transfer. • Adding supplemental dust control systems, through the installation of systems for passive dust gathering, water-based dust suppression, and/or active dust collection."

Jan 1, 2017

By Jenny Alsén, Hans Hogard

"Construction of large facilities underground in urban areas has many advantages. In order to show the advantages, a case study of the Norsborg metro depot in Stockholm Sweden has been made. The Norsborg metro depot will be the largest and most modern underground metro depot in northern Europe. The depot has been built in hard rock in an urban area with small impact on the environment and local residents. The paper describes how it is possible to build underground facilities in a cost efficient way and take care of the challenges regarding working environment that comes with locating a permanent working place underground. INTRODUCTION The Stockholm area is one of the five fastest growing regions in Europe and home to more than a fifth of Sweden's population on just two percent of Sweden's surface. The population is growing rapidly, with about 35,000 people per year and is expected to reach 2.6 million in 2030. In order to meet the development and enable continued growth, housing projects and expansion of infrastructure need to keep the same pace; this is an easy conclusion to make but much more difficult to realize in practice. The main challenge is to accomplish development in a sustainable and efficient manner, minimizing the use of resources and land. By constructing facilities underground more urban space will be made available for development and/or for greening of city centers. Considering sustainability factors such as land value in decision making for placing of structures or facilities, underground locations could become a first choice alternative. During 2015 and 2016, several major underground infrastructure projects in the city of Stockholm will start, including a 14 km sewage tunnel and an 18 km by-pass highway tunnel. Furthermore the Stockholm metro system is currently undergoing the largest expansion since the 1970’s, a 19 kilometers extension of the metro system including new trains and new stations is planned. During 2013 - 2015 Skanska Sweden took part in the construction of a new metro depot placed underground in the southern part of Stockholm; the Norsborg metro depot. This is a top modern urban underground facility that in 2017 will serve as depot for 17 new metro trains. The project was selected for “Outstanding Project of The Year” at the ITA Tunneling Awards 2015."

Jan 1, 2016

By William B. Schmidt

In July of 1974 a study team comprised of the authors was formed by the Department of the Interior. It was supported in part by funding from the National Science Foundation. The purpose of this study group was to visit coal mines and research and manufacturing facilities in England and Germany, to review the status of mining in these countries, and to identify mining technology which might have application to U. S. mining conditions. The duration of the visit was 18 days. The first week of the trip was spent in England. Time does not permit a complete recitation of the team's impressions but a few of the more interesting technologic developments will be discussed. These fall into the following categories- High Speed Development Ground Support Chainless Haulage and Face Conveyors Nucleonic Steering of Shearers Miscellaneous

Jan 1, 1975

By R. Adams

Zirconium is the 20th most abundant element in the Earth?s crust and it most often occurs in the form of silicate (as zircon), less often in the oxide form (as baddeleyite or caldesite). Historically, the world?s production of zircon was entirely derived from mining and processing beach sands or heavy mineral sands that were being exploited primarily for their titanium content, i.e., to generate TiO2 feedstocks that would be used for making titanium pigments and, to a lesser extent, titanium metal. Zircon was then regarded as a byproduct, with the sharply fluctuating prices typical of a commodity where the supply is essentially involuntary and not truly responsive to market demand. However, in recent years, zircon has shown considerable mining investment appeal in its own right. Projects have been planned ? and some have already come to fruition ? based mainly on the zircon potential of the deposit. Booming Chinese demand for zircon to meet the requirements of the ceramic and zirconium chemical sectors has been a major factor causing zircon prices (f.o.b. Australia) to surge from US$674/t ($611/st) at [ ] the end of 2005 to beyond US$2,400/t ($2,177/st) by the end of 2011.

Jan 1, 2012

By Simon D. Strauss

The recession that began in late 1980 has proved to be not only prolonged and severe, but in certain ways unique in its effect on the mineral industries among the periods of economic slowdown experienced in the Western world since the end of World War II. This time almost all minerals have been affected. In previous business turndowns, by contrast, some mineral sectors have with-stood economic adversity well. They experienced little or no adverse effect-thanks either to a strong secular expansion in the markets for their particular product or to specific factors that caused demand to be well maintained. For example, aluminum, molybdenum, and nickel are three metals that enjoyed extraordinary growth in applications during the years 1946-1973. These metals were little affected during the recessions that occurred in that era. Similarly, coal did not suffer a pronounced drop in sales in the 1974-75 turndown because, with the price of oil rising sharply, a switch away from oil and back to coal was clearly indicated for some energy-intensive applications. Oil itself was largely impervious to the ups and downs of the business cycle until very recently. And the precious metals, gold and silver, have often been regarded as benefiting from reduced economic activity because labor becomes more available, productivity rises, and operating costs diminish. In the current recession, however, no major mineral has escaped the broad trend. The secular growth factors that were previously so evident for aluminum, molybdenum, and nickel have disappeared, at least temporarily. The stable pricing behavior that previously characterized all three of these commodities has been replaced by extreme price weakness and apparent inability of the major producers to continue their roles as market leaders. Coal and oil both have suffered from a sharp drop in energy requirements. There are those who now anticipate a collapse of the market control over oil prices so clearly exercised by OPEC since 1973. If oil prices are no longer effectively controlled by the governments of the exporting countries, then coal prices are also certain to be affected. And the combination of high interest rates, tight money, and a change in public perceptions of precious metals put the skid under gold and silver quotations in 1981 and early 1982. Although inflation has been viewed as the scourge of most Western countries ever since the oil crises of 1973-74, prices-in constant dollars-of most minerals have not risen. On the contrary, with the exception of the precious metals and oil, for most minerals the prices that prevailed at the end of 1982 were close to the levels of the Great Depression of the 1930s in constant dollar terms. Table 1 compares prices for copper, lead, zinc, and aluminum at the end of 1982 with the average prices in 1934, stated in constant 1967 dollars. This emphasis on prices for mineral commodities reflects the fact that profits of mining enterprises vary directly with the level of prices. Manufacturing and retailing enterprises march to a different tune. They establish sales prices based on costs. Their profits tend to vary with volume. Commodities are for all practical purposes fungible, that is the advantages of known brands in marketing manufactured goods have little application in a commodity market. Thus the individual seller of minerals is unable to establish his sales prices. Except where a monopoly is present, he must sell at the going market. His option is to abstain from selling if he finds the price unremunerative. In past recessions, some mineral producers chose to do precisely that-either accumulating a substantial share of their output in inventory or, in prolonged downturns, abstaining from production. During the current recession, however, private-sector mining companies did not have the option of accumulating inventories to any great extent. Capital costs for new mineral projects or for expansion of existing facilities have escalated at an alarming rate since the early 1970s. Added to this has been the heavy cost of installing pollution control or safety equipment to comply with the regulations adopted in most industrialized countries (and particularly the United States) since 1968. The consequence has been that the financial position of most major mineral enterprises in mid-1980 was already strained. To finance increased inventories meant incurring additional funded debt at high interest costs, thus impairing the concern's credit rating. Management Choices Private-sector managements have had to face up to the alternative of either continuing to produce at an unchanged rate and marketing output at unremunerative prices or reducing output. The latter has meant either operating at a curtailed rate, with con-

Jan 3, 1983