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By R. J. Robbins

The mechanization of hard rock underground mines offers a large potential for reducing cost, improving efficiency, and increasing profitability. However, in spite of serious efforts by quite a number of equipment developers and mining company initiatives, the industry has achieved little real progress. The task is difficult and the blasting alternative to mechanical excavation is an effective and well-developed method, which continues to improve in spite of its inherent limitations. A large number of machines have been built and tried. Only a few developments have succeeded to make a major impact on underground hard rock mining. It is certain that hard rock mines would be laid out and designed quite differently if the mining engineers knew they had available continuous mechanical excavation machines. In the absence of the machines, mines will be designed for excavation by traditional methods. It is not easy to utilize mechanical excavation in a mine which is designed to operate with normal drill and blast excavation. This is certainly an impediment to machine development. But what if an ore body cannot be mined conventionally, simply because the mining company cannot get permits to satisfy the ever increasing strict EIS requirements of the general public and governmental agencies? This may provide the incentive necessary to develop the equipment that will be needed by a new mining method that will have almost no impact on the environment.

Jan 1, 2001

By H. Razavizadeh

The recovery of copper from oxide ores containing from 2% to 4.1% acid-soluble copper from the Sarcheshmeh mine in Kerman province of Iran was investigated by agitation leaching in sulfuric acid media. Quartz, as a major constituent, and malachite, as the major copper mineral, were identified in the ore by X-ray diffraction (XRD) and microscopic studies. A series of leaching experiments on the ore was performed over a concentration range of 10 to 20 g/L and temperatures from 15° to 50°C for a maximum of 3 hours. An initial high dissolution of copper was followed by a very slow reaction. By increasing acid concentration and temperature, the dissolution rate of copper was accelerated. However, by increasing acid concentration, the acid consumption of ores was also increased. Surface morphology of solid residues at various leaching times was examined with a scanning electron microscope (SEM). All SEM micrographs of the partially reacted particles displayed a needle structure. The kinetic studies showed that the malachite dissolution rate could be modeled in two stages. About 85% of the malachite dissolution occurred in Stage 1, while the remaining 15% occurred in Stage 2. The data obtained for the leaching kinetics indicate that the dissolution for Stage 1 was a diffusion-controlled reaction with an activation energy of about 20.6 kJ/mole, and the dissolution for the Stag 2 was a chemical-controlled reaction with an activation energy of about 87.6 kJ/mole.

Jan 1, 2008

By Fritz Grübl

Modern shield TBMs allow tunnel drives through almost any type of ground. Thanks to high elaborated technical measures, significant subsidence of the ground surface can be almost entirely avoided. The tunnel lining behind the TBM must be capable of withstanding all loads without deforming, especially during ring erection and advance. Single-shell tunnel linings behind the TBM, usually reinforced concrete segmental rings, can be designed to fulfill this demand. With many projects, however, damage occurs to the lining. Repair costs may be extremely high. Reasons for damages and possibilities to avoid them are shown and explained.

Jan 1, 2001

By K. Kavouridis

The energy and climate protection policy of European Union (EU), and its Member States adopted in 2007 bridges security of supply, environmental protection and competitiveness. The objectives of the EU energy and environmental strategy cover the foreseeable period till 2020. It assumes all sources of energy will be needed. The objectives for renewable and improved efficiency are ambitious; it must be established if they are also realistic. Coal can continue to make valuable contribution to the security of supply and low price of electricity, only with technologies allowing for drastic reduction of the CO2 emitted of its combustion. The aimed at -20% reduction of green-house gases (GHG) of EU-27 by 2020 is an objective limited in time and content. Europe produces less than 15% of global CO2 and this will be reduced to 10% in 2030. Emissions Trading (ET) is to remain the central instrument for CO2 management, especially in the power sector. ET scheme (ETS) or other mechanisms need designing to create an incentive for investment in higher efficiency and technologies and to Carbon Capture & Storage (CCS). The ETS as the climate protection instrument of the EU can become a heavy burden (high fuel and electricity prices, less security of supply) or it can create a climate for modernization of fossil fuel power plants. The suggestion in this paper of fuel-specific benchmark system for CO2 allocation after 2012 can combine the emission levels to be reached with a strong drive to invest, the necessary investment security, transparency and the principle of proportionality. A Benchmark System as recommended by coal industry could adapt to the different circumstances in the long term and comply with EU energy and environmental policy objectives.

Jan 1, 2008

By John Corcoran

INTRODUCTION Content of this Report The 1300m long twin-bore 8.1m diameter Airside Road Tunnels (ART) were excavated beneath the busy taxiways and stands of Heathrow Airport between 2002and 2003. The tunnels were fully completed and handed over to the client for use early in 2005. This paper will describe the purpose of the tunnels, and the measures put in place to minimize the impact of construction on the daily activities involved in running an international airport. Terminal 5 Construction Heathrow Airport is the busiest international airport in the World, with a current capacity of circa 67 million passengers per year, based on existing infrastructure of4 passenger terminals, 1 cargo terminal, 2 runways and 170 aircraft stands. Terminal 5(T5) is being built to increase Heathrow’s passenger capacity by providing the following: 12 additional aircraft stands through redevelopment of the south apron area, in the autumn of 2004 A main terminal building (T5A) and a first satellite (T5B), and 43 additional stands by the spring of 2008, most of which will be able to receive the new generation large aircraft (Airbus A380) A second optional satellite (T5C) by year 2010 A third optional satellite (T5D) by year 2015 The total value of the project is approximately 4.2 billion pounds for the main phase of the works spanning from 2000 to 2007. Purpose of the Airside Road Tunnel The ART has been constructed to support the internal road traffic of the airport between terminals, aircraft stands, runways and taxiways, for passenger buses, service and technical vehicles. The majority of the traffic will be buses transporting passengers between the terminals and their aircraft.

Jan 1, 2005

By L. K. Marshall

Last month's engineering fundamentals article discussed some general considerations of underground mine ventilation. This month's article takes a look at auxiliary ventilation-brattice, fans, and ducting-in underground mines. The need for good, efficient auxiliary ventilation increases as mines get deeper and move farther from ventilation shafts. New mining methods and equipment resulted in faster work area advances, liberating more dust, gas, and heat. As a result, worker health and safety requirements in the face area have become more stringent. For all these reasons the safety and efficiency of any underground mine depends heavily on its auxiliary ventilation. The purpose of such ventilation is to supply sufficient quantities of clean air to the face of the drift and to maintain air quality within desired limits until expelled from the mine.

Jan 2, 1982

By D. Craig Camp

conditions. The soils included 65 m of rock not exceeding an unconfined compressive strength (UCS) of 200 kgf/cm2, 130 meters of soft clay, silt, and sand not exceeding 30standard penetration test SPT blows per 300 mm, and 220 m of rock ranging between an UCS of 400-600 kgf/cm2. The river crossing, utilizing 1778 mm OD x 19 mm wall x600 mm steel casing pipe without intermediate jacking stations, was part of a seven kilometer liquefied natural gas (LNG) transmission line in South Korea. This 440-m, 1,442-ft, river crossing was microtunneled through three different ground conditions and completed in just over three months. The crossing was achieved with an average of 25 m of ground cover and 15 m of water cover. The Kwang Yang River Crossing was part of a 7 km liquefied natural gas pipeline project for POSCO, a Korean steel producer. The microtunneling machine was custom built for this project. The microtunneling machine selected for this project was tooled with 7 button bits and 2 roller bits. None of the cutter bits were replaced during the drive. Inside the machine, before the spoils laden slurry was pump back to the surface, it would pass through an independent cone crusher. The crusher is placed in the slurry flow to make sure that none of the spoils are so large as to stop the return flow of the slurry. An additional requirement was for the inclusion of a compressed air lock. The air lock was required in the event that the cutter tools required replacement. The cutters were back loaded so that the workers would have access to change the cutters in the event of cutter failure or wear out. No intermediate jacking stations were installed for the drive. The soils included 65 meters of rock not exceeding an unconfined compressive strength (UCS) of 200 kgf/cm2 with production averaging between 7 and 20 mm/minute. The second zone contained 130 meters of soft clay, silt, and sand not exceeding 30 standard penetration test (SPT) blows per 300 mm with production averaging between 80 and 180 mm/minute. The third zone contained 220 m of rock ranging between an UCS of 400-600 kgf/cm2 with production averaging between 7 and20 mm/minute. The steel casing pipe was 1778 mm OD x 19 mm wall x 6000 mm long. The project profile, see Figure 1, shows the soil conditions. The hand written numbers locate just above the pipeline are the production dates. The circled numbers are the 10 pipe joint increments. The project required 74 pieces of pipe to span the440 m drive. Figure 2 and Figure 3 are the jacking information. Figure 3 is a continuation of the information from Figure 2. The top section of the graph is the jacking force. The jacking

Jan 1, 2001

By F. D. Ayhan

The aim of this study was to investigate the effects of various water mediums on desulfurization and deashing of a coal sample using flotation. For this purpose, experimental studies were conducted on a coal sample containing high ash and sulfur contents. The effects of pH, solid concentration, collector amount and frother amount on the flotation were investigated separately in Mediterranean Sea water, Çermik thermal spring water, snow water and tap water. Flotation results indicated that, when comparing the various water mediums, the following order for the ash content was obtained: snow water < Çermik thermal spring water < tap water < the Mediterranean Sea water. For the reduction of total sulfur, the following order was obtained: snow water > Çermik thermal spring water > Mediterranean Sea water > tap water. When snow water was used as a flotation medium, it was found that a concentrate containing 3.01% total sulfur and 27.64% ash with a total sulfur reduction of 57.06% was obtained from a feed containing 7.01% total sulfur and 41.17% ash.

Jan 1, 2009

Several economic factors have caused the surface mining industry to require large-capacity shovels and trucks for efficient, high-production, low-cost operations. Some of those factors include technological advancements in equipment, commodity market depressions, increased labor and maintenance costs, contractural obligations and harsh operating conditions. The difficult operating conditions in surface mines, however, pose challenges to the use of high-capacity equipment. They include space limitations, weak over-burden, and weathered soils and rocks. So mining companies face major challenges in selecting appropriate shovels to meet the technical, operating, safety, environmental and economic requirements of their mines.

Jan 1, 2003

By T. T. Chen

The behavior of gold in a conventional copper electrorefinery anode slimes treatment process is expounded on in this study. In the raw anode slimes generated in a copper electrorefinery, gold occurs mainly as tiny particles of metallic gold, which are commonly attached to selenide particles. Some gold is also present in selenide form. Decopperizing the anode slimes retains much of the metallic gold, but also promotes the incorporation of gold in the structure of silver-rich selenide species. A greater fraction of the gold is converted to (Ag,Au)2Se or Ag3AuSe2 when high-Se and high-Ag anode slimes are decopperized at elevated temperatures and pressures. After pelletization and roasting of the slimes, the gold is converted to a (Ag,Au)-alloy and Ag3AuSe2. Smelting of the roaster products eliminates the selenium and converts the gold to a silver-rich (Ag,Au,Pd)-alloy in the dore metal. In the subsequent silver electrorefining process, gold collects as a gold-rich (Au,Ag,Pd)-alloy in the gold mud. Dore smelting rejects many impurities as a silica slag; minor amounts of gold are present as a (Ag,Au,Pd)-alloy in the silica slag. This gold is recovered by flotation and is recycled to the dore furnace. Gold is identified in both the tellurium caustic leach residue and the parting plant wash water mud as tiny particles of metallic gold. These products are also recycled to the dore furnace to recover their gold values.

Jan 1, 2008

By R. J. Pruett

The Georgia kaolin district is the world’s largest producer of kaolin. Georgia production tripled from 2.87 Mt (3.17 million st) in 1968 to8.35 Mt (9.2 million st) in 1998. Development of the Georgia kaolin industry can be traced to the identification of the mineral resource, the adoption of innovative process technologies and the creation of markets for kaolin. Georgia kaolin is an abundant and high-quality resource that shows a range of advantageous properties. Technical developments in wet processing, delamination and calcination allowed production of high-value products. The use of kaolin pigments in the paper industry provided a market that absorbed the rapid growth in kaolin production.

Jan 1, 2000

By J. Jonas, J. M. Harrington, K. Wangerud, S. D. Fundingsland, J. G. Harrington

EPA NRMRL Mine Waste Technology Program and Region VIII Superfund office are jointly conducting an in-situ technology demonstration at the Anchor Hill Pit Lake, Gilt Edge Mine Superfund site. The goal is to develop in-situ treatment cost/performance data for potential application in long-term water treatment/management at Gilt Edge and similar sites. The pit contained 77,000,000 gallons of pH 3water with elevated metals, sulfate, and nitrate. The Green World Science® patented process for in situ treatment was implemented to isolate and sequester metals; create stable long-term water quality and restore a sustainable ecosystem. COCs have decreased more than 99%, and dissolved discharge standards were attained.

Jan 1, 2004

By S. G. Britton

"Strategies to improve performance in mining production, maintenance and mineral processing operations have evolved over time from straightforward time studies of individual machine performance in the 1960s-1970s to more sophisticated and better focused statistical and financial tools that have emerged in the 1980s-1990s. These newer strategies fall under the broad descriptive category of operational excellence.Operational excellence is the term that embodies a number of performance evaluating strategies, the most popular and relevant to mining include the following:• Six sigma for addressing errors within mining or milling process and work standards.• Lean manufacturing to optimize organizational and operational performance through continuous improvement.There are other strategies that can be applied as well and this paper is not focused on a review of the pros and cons of any one strategy. However, the common threads in these strategies embody the expectation that expected results from these efforts can be quantified and that value will positively benefit the targeted work process, organizational unit, equipment deployment or time schedule when applied to it as part of continuous improvement efforts.The priority for proceeding with any one or more of these efforts is based on the calculated net value of the required resources to make the change versus the estimated value gained. The practice is identified as the value mapping process.This discussion summarizes the value mapping process methodology used at a mature uranium mine and mill in northern Canada to work through the myriad of potential improvement efforts available through the operational excellence process for continuous improvement."

Nov 1, 2016

By G. Coombs, L. Meade, J. Welshimer

Industrial Minerals commodity profiles are continued from May&apos;s Annual Review issue. Diatomite G. Coombs, Manville Sales Corp. Growth in US diatomite production continued to lag in 1986. The US Bureau of Mines estimated that 580 kt (640,000 st) were produced last year. This is a 1%0 growth over 1985. The cumulative growth from the 1982 low point is 4.4%. Present production, though, is still only 90% of the high tonnage of 1979. The industry will see increased competitive activity with the start-ups of two new mines and production facilities in California and Oregon. US production has come primarily from Lompoc, CA, Bassalt, Clark Station, and Lovelock, NV, and Quincy, WA. New production, probably with capacities of 45 kt/a (50,000 stpy) each, have started near Burney, CA, and Vale, OR. Eagle Picher&apos;s new, full-line filter aid and filler plant at Celatom, Vale, OR, was dedicated in August. The plant uses diatomite from the Celatom mining district in Juntura, OR. Grefco&apos;s new filter aid and filler plant near Burney, CA, was ready in July. It produced flux calcined products through a single kiln and can handle both bag and bulk shipments. The operations are in Shata County with the plant and mine at the same site. Manville Specialties Group is moving its Filtration and Minerals Division headquarters and research staffs to Lompoc, CA. The move is intended to strengthen response and performance by locating research, marketing, and production close together. Diatomite is processed in three methods: natural, calcined, and flux calcined. The natural is dried to remove water and is particle size classified. Calcined or straight calcined products have been sintered to modify particle size or permeability. Flux calcination, or flux sintering, has a stronger influence on permeability and also benefits color. The unique structure of diatomite is used in a range of particle sizes from fine paint fillers, to coarser filter aids, to granular aggregates. Dimension stone L. Meade, Geomapping Associates Ltd. 1986 was another good year for dimension stone production. The trend toward using marble, granite, limestone, sandstone, and slate has created an increasing demand. According to US Bureau of Mines 1986 estimates, 1.1 Mt (1.2 million st) of dimension stone, with a value of $173 million, was produced by 200 companies. This is an increase from 1985, where 220 companies produced 1 Mt (1.12 million st) valued at $172 million. The increased production volume and decreased unit value is due to the competition from imports. The net import reliance in 1986 was 68% compared to 62% in 1985. The value of imports was $374 million in 1986 versus $295 million the year before. In an effort to maintain their market share, domestic finishers, particularly in the granite industry, continued to upgrade plants and machinery during 1986. In addition, offshore dollars have financed a number of fabricating facilities in North America that will finish imported rough stock. It is hoped that this increased domestic production capability will capitalize on a devalued US dollar. The trend has been for growth in stone usage and market. This trend is continuing with increased public awareness and desire for natural stone in buildings. The area of greatest market growth is expected to be in residential and interior decorative stone usage. Use of sophisticated, automated equipment has made the cost more affordable. Now lobbies, foyers, and specialty rooms are being clad in stone. Dolomite J. Welshimer, National Lime & Stone Co. About three-quarters of dolomite production is used as construction aggregates and 10% to 20% is sold or used as an industrial mineral. Total limestone and dolomite consumed for chemical and metallurgical purposes is about 136 Mt/a (150 million stpy). Sales of industrial dolomitic products were somewhat stronger in 1986 than levels recorded in the early 1980s. Some of the sales&apos; strength, however, can be attributed to reductions in the number of active mining and processing operations. The industry will probably undergo further consolidation by the end of this decade. This will be due primarily to the continued softening in demand by the steel industry. Dolomitic limestone deposits being mined for raw materials for the steel, glass, and refractory in¬dustries are generally 54% calcium carbonate and 45% magnesium carbonate by weight. Impurities composed of silicon, aluminum, iron, sulfur, and phosphorous, represent less than 1%. The heaviest concentration of high purity, surface mineable dolomite in the US is in northwestern Ohio. Crushed and sized dolomitic limestone is a basic raw material for the iron and steel industry. It is also used as feed stone or lime kilns. Soft-burned lime is a popular raw material for BOF steel production. It is also used extensively in insulating glass fiber manufacturing. A related material, hydrated

Jan 6, 1987

By T. B. Acton

There are two types of ore transportation systems in use at Newmont&apos;s Magma Copper Co. San Manuel mine in Arizona-rail-mounted, box-type rotary cars and the newer rail-mounted, bottom-dumping ASEA cars. Though the cost per car for the ASEA units greatly exceeds the cost per rotary car, the advantages of the ASEA units, including much faster dump times, have made the ASEA system a successful alternative at the San Manuel mine. The rotary system of ore transportation has been in use at San Manuel since production began in 1956. The system employs 7.9-m3 box-type cars to transport ore by rail to shaft pocket areas. A rotating dumping mechanism turns three cars at a time upside down to empty them, and returns them to an upright position. Trains of 15 cars each are dumped in about six minutes. Each 15-car train is pulled by an 18-t rated trolley locomotive. There are about 400 rotary cars in service at San Manuel and the system is used for the majority of ore haulage. This well-proven rotary method was instrumental in achieving the December 1977 world record of 272 Mt hoisted from an underground copper mine. Magma Copper Co. began using ASEA cars in late 1977. Designed by ASEA of Sweden, the cars are built for San Manuel by Kasper-Hall Manufacturing Co. in Tucson. The cars basic design feature is a hinged floor that opens at the side as the car is pulled through the dump. As it passes over the dump, a fifth wheel attached to the hinged floor (opposite the hinges) travels along a rail in the dump. This rail dips down into the pocket and then returns to track level. As the fifth wheel travels along the rail, the car floor opens, the car dumps, and the floor is then returned to track level. As the car is dumping, the body remains suspended over the pocket by wheel rollers attached to each side of the dump. Trains of 10 cars each are emptied in about 45-50 seconds. Each ASEA train is pulled by an 18-t rated trolley locomotive, adapted at San Manuel to allow it to pass through the ASEA dump. At minimal cost, "wings" are welded to each side of the locomotive. These wings suspend the locomotive over the pocket as the train passes through the dump. Advantages of the ASEA System Major design characteristics of the ASEA and rotary systems are shown in the accompanying table. The comparison points out some of the following advantages demonstrated by the ASEA system. • Faster dumping-An ASEA train dumps in 50 seconds, while a rotary train takes at least six minutes. There is no stopping or starting when dumping an ASEA train. The train enters the dump area, dumps, and leaves in one continuous motion-in contrast to rotary trains which must stop and start five times to dump. With the rotary system, three cars are spotted in the dump mechanism by remote control. When the cars are in place, the train operator activates the dump, the cars are turned over, and then returned to an upright position. This process is repeated until all 15 cars in the train are emptied.

Jan 4, 1980

Editor’s note: As usual, the June issue features an industrial minerals review. And some thanks are in order. Thank you to the industrial minerals annual-review editor, to the technical committees chair and vice chairs and to the authors of the individual commodity profiles. Jim Norman of GeoTrans Inc. is the industrial minerals annual-review editor. William Langer, U.S. Geological Survey, is the chair of the SME industrial minerals technical committees and the vice chair of the technical committee for construction materials. Other technical committee vice chairs include: •Lucy McCartan, U.S. Geological Survey, agricultural minerals. •Steve Herron, Oglebay Norton Performance Minerals, ceramics and refractory materials. •Srinivas Veeramasuneni, U.S. Gypsum, chemical raw materials. •Ismail Yildirim, Imerys, fillers and pigments. •Charles Landis, BPM Minerals, sorbents, filters and process aids. •Ray Harris, Wyoming Geological Survey, specialty minerals. Their help makes possible this June industrial minerals issue. On behalf of the readers, the editors thank them

Jan 1, 2004

By J. P. Rider

The number of extended cut mining systems has increased significantly in coal mines over the last decade, and there is a constant push to extend the face ventilation systems to even greater setback distances. The need to maintain airflow at setback distances of 12.2 m (40 ft) and beyond requires that methods for delivering intake air to the face be improved, or alternative ventilation techniques be implemented. The emphasis of this research effort was to examine various techniques to improve the distribution of available air at the mining face in order to reduce face methane levels. A study was conducted comparing the performance of a jet fan, used in conjunction with a machine mounted scrubber, with blowing curtain ventilation in a 27.5 m (90 ft) heading. In addition, a second study was performed on blowing curtain systems examining how scrubber flow, intake air velocity, and curtain setback influence face methane concentrations. Results showed that when the heading advances to a depth of 27.5 m (90 ft) blowing curtain systems were more efficient at diluting face methane levels when compared to a jet fan. Also, increases in scrubber flows and curtain velocity resulted in lower face methane concentrations for blowing curtain systems at 9.2 and 15.2 m (30 and 50 ft) setbacks.

Feb 24, 1997

By V. G. Grechanyuk

The paper presents the mechanical properties of Cu-Mo composite materials depending on the molybdenum content. The influence of structural defects on the mechanical-physical properties of the condensates at stretching testing as well as of the lamellar grain dimensions upon the mechanical properties of Cu-Mo composite materials is also presented.

Jan 1, 2008

By Douglas B. Silver

Traditional cycle theory would postulate that if you have a supply shortage relative to demand, the price will increase because buyers will incrementally increase the price they are willing to pay to ensure that their needs are fulfilled. As prices rise, more supply will be brought on and will eventually exceed demand. This supply excess will cause the price to decline as producers have to lower their prices to sell their goods. What is interesting is that cycles are simply volatility over time. Without the time factor, volatility simply goes up and down. When we add the time element, a cycle is created. This cycle can be big or small. In mining?s case, we are talking about a Super Cycle ? a big cycle. But a Su-per Cycle can be formed in two ways. It can form by either increasing the wavelength or the volatility. If these two elements are combined, a Super Cycle is formed. It is bigger than the normal cycle in terms of time duration and extent of volatility. A recent study (Fig. 1) conducted by Cuddington and Jarrett showed an interesting proof of Super Cycles and suggests that these cycles last between 15 and 30 years. So, what causes a Su-per Cycle? Is it a convergence of unrelated events or a consequence of related events? In a global community everything is related. Equilibrium theory would also take the position that a Super Cycle is a consequence of events.

Jan 1, 2008

By Frank W. Luerssen

Introduction "Austerity" is perhaps an overly generous description of the past three years in the American steel industry. Steel plants operated at an average of only 57% of their capability in 1982-84. The dismal losses for last year are still being totaled. But during the two years before this period, American steelmakers recorded an aggregate net loss of a staggering $6.8 billion. Steelmakers responded by closing numerous marginal facilities. And production capability was cut by 13.6 Mt (15 million st). Capital expenditures still averaged $2 billion annually. But this was inadequate to maintain the existing base of steelmaking facilities. The general economy experienced a satisfactory recovery during this period. American steel, however, continued to suffer from a lagging recovery in the capital goods sector. This was due to record penetration of its domestic market by imports and from very weak realizing prices on the volume that was available. In addition to the direct influx of offshore steel products - which itself depressed prices - the industry also became painfully aware of the growing importance of "indirect" imports. These came in the form of steel-containing producer and consumer durables. Industrial equipment and autos fabricated from foreign steel accounted for the equivalent of 6 Mt (6.5 million st) of lost market opportunity for domestic steel-makers last year. That is over and above the 23.5 Mt (26 million st) of direct steel imports. Given these factors, Inland Steel was not spared from the threeyear downpour of red ink. Despite its record of continuing modernization in steel, our single-plant location in the world&apos;s best steel-consuming market, and the high proportion of consumer durables related products, such as cold rolled and coated sheet in our mix, Inland suffered aggregate losses of $277 million during the 1982-84 period. Strategic Planning The foregoing establishes a perspective - a base from which we have restructured our view of the steel industry, and of our own role within that picture. Until possibly two years ago, this present weakness in steel demand was viewed around the world as an aberration, eventually to pass. By contrast, it is now recognized that austere times are the normal steel environment. The topic here is management of resources. This implies an emphasis on strategic planning. It is worthwhile to examine some of the more critical assumptions that were driving strategies among a number of steel companies just before the 1980s. Those projected characteristics of the future steel environment were arrived at through painstaking analysis. They were carefully and heavily quantified and were generally shared by outside observers and our peers within the steel industry. • First, the assumption was made that domestic steel demand would continue to grow at an average rate of 2% per year. • Second, it was assumed that this growth in the American market would continue to be filled predominantly by US mills. It was believed that increases in steel and steel-related demand overseas would absorb much of the ominously growing capacity of third

Jan 6, 1985