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By B R. Olsson, N Marinopoulos

To establish the design and the capacity of the Stanwell Magnesium Plant, Australian Magnesium Corporation Ltd (AMC) with Fluor Australia has modelled the operation of the magnesium plant using ARENA Simulation Modelling. The reliability model has been used to evaluate: surge capacities required between different sections of the plant; critical equipment requiring standby capacity; the number of trains required for different sections of the plant; and potential capital cost reduction options. The reliability model was established using the detailed Process Flow Diagrams, reliability information from literature and maintenance, operation and start-up experience from the Demonstration Plant. The model was run with different plant configurations to assist AMC in determining the most effective configuration to provide the production capacity at the lowest capital cost. The model was not only able to confirm the plant capacity to the independent technical expert but was able to minimise quantitative risk by minimising the quantities of hazardous materials on site. Fluor Australia provided the ARENA simulation expertise and has used this software for optimising new plant design and to establish improvements in operating plants. Reliability modelling is a normal feature of chemical plant design but is rarely used in the resource industry. The experience gained by AMC in the modelling system has indicated that metallurgical plant design can be improved by the application of reliability modelling.

Jan 1, 2002

There have been many developments in recent years in pipeline transport to enable them to be more widely used in industry. Substantial tonnages of materials that are not affected by water, such as coal and other minerals, aggregates and wastes, can be moved over considerable distances in quite small diameter pipes. Where there are no existing road or rail facilities, long-distance pipelines are usually cheaper to install, and this advantage increases in difficult terrain. Pipeline operators all over the world assert that hydraulic lines pay for themselves in a relatively short time, in spite of the heavy capital outlay, and this is equally true for lines convey-ing slurries or pastes within a plant complex.'This paper reviews some of the more important investigations in the hydraulic transport field. Although reference to systems carrying a wide range of materials is made, the majority of recent published data centres on coal transport.The paper looks at the application to a wide range of particle sizes, the development of non-aqueous slurrying media and coal/water fuels. The review also looks at some of the equipment being proposed to provide more reliable operation and in particular the range of solids-handling pumps now available.-The paper goes on to identify areas where further research and development is required and some of the many organisations undertaking this work.

Jan 1, 1985

The Regional Development Council has initiated a project that aims to find better ways for further investment by extractive industry companies in sustainable regional and community futures. It will be undertaken through collaborative actions that bring together the resources of private and public sector stakeholders in regional Western Australia.   The broad objectives of the project are to: describe and analyse the current situation with respect to the impediments to regional communities being more self sustaining, assess the effectiveness of the current and possible future levels of investment by extractive industry companies in the sustainable development of communities in regional Western Australia, identify and demonstrate collaborative ways in which extractive industry companies in Australia and other countries can play an enhanced role in sustainable regional and community sustainability through strategic engagement and investment; and confirm the effectiveness of the collaborative measures in delivering sustainable outcomes for regional communities by way of attracting and retaining populations and enterprises in Australia and similar environments.

Jun 1, 2010

By S Choy

Aquatic macroinvertebrates have been used as a monitoring tool for many years. They are ubiquitous and occupy a central role in the ecology of rivers. They are a key link in the aquatic food chain, forming a pathway between primary producers (such as algae and macrophytes) and predators (such as fish, platypus and birds), and some are sensitive to flow conditions, water quality and habitat condition. They are not very mobile and are good indicators of local impacts. As most aquatic macroinvertebrates are benthic, they are better able to integrate effects of changes in water quality, and habitat condition and structure. Their diversity is crucial to the maintenance of a balanced, functioning and healthy river ecosystem. Thus, data on benthic macroinvertebrate community structures can be used for predicting potential impact, assessing the extent of damage and for gauging recovery from damage. Over the past eight years, State agencies throughout Australia, through the National River Health Program have developed models (AusRivAS) to assess river health using macroinvertebrate communities. The Queensland Department of Natural Resources and Mines has sampled both macroinvertebrates and water quality throughout Queensland, including areas affected by mine discharges. This paper will assess results obtained from sampling in the Mt Morgan area to illustrate the usefulness of this method of river health assessment.

Jan 1, 2003

The source and origins of the hydrothermal fluid of orogenic, or quartz-vein lode-gold deposits remain uncertain and disputed: Resolution would likely have a significant affect on exploration strategy. The gold-carrying fluid is interpreted to be a low-salinity mixed aqueous-carbonic fluid of near ambient pH and redox state, that may be derived either magmatically through crystallisation of granites at depth in the crust or through metamorphic reactions in a range of rock types. Classic isotope and geochemical tracers of fluid source have not differentiated these possibilities and have produced conflicting conclusions. Mass balance calculations show that fluid composition will be modified by wallrock reaction between source and deposit, and tracers should not be expected to give clear indications of fluid source. Fluid oxidation state can also be modified along flow paths. Tracers should be interpreted with care and with view to possible modification. Modelling of full flow paths and examination of the hydrothermal histories of proposed source rocks may be alternative approaches to determining fluid source.

Jan 1, 2002

By A Singleton, J Busfield

World coal producers have been under constant pressure in recent years because of falling export prices arising from oversupply and the Asian slowdown. This has resulted in a dynamic market place, a sharpening of focus on bottom line costs and some rationalisation of participants. Productivity has increased dramatically as many inefficiencies, typical of the coal industry, have been eroded through workplace reform. This is true for the both open cut and underground sectors of the industry. At the same time, the technology of underground mining is undergoing dynamic change. Mine operators are implementing better exploration and planning tools and are also starting to make gains against chronically low equipment availability and utilisation. æStep-changeÆ improvements in output are imminent. As the statutory environment shifts to a æduty of careÆ regime, it is hoped that mine safety performance will improve, particularly with regard to fatalities. The focus of the paper is on the Australian coal sector, although references to international benchmarks are made. Despite environmental threats to the future of coal, it is concluded that the next ten years will see impressive performance results from underground coal mines which will assist coal to maintain its position as the preferred fuel of lowest cost.

Jan 1, 2000

The purpose of this paper is to explain the basic structure of how minerals are marketed, whilst highlighting the essential factors that mine management needs to be confident are incorporated into a mineÆs marketing strategy. The traditional mine management approach to marketing has been to defer its scrutiny to the marketing manager and take a largely passive role. It is this paperÆs assertion that mine management needs to become more proactive and provide greater strategic input into the marketing process. Irrespective of what mineral your mine produces, the key marketing principles remain constant and need to be understood and managed to extract the full benefit on behalf of the mining asset. From a mine management perspective, success is ultimately linked to understanding these marketing principles and ensuring that they are effectively addressed by your mineÆs marketing strategy. This paper will unashamedly attempt to simplify marketing by explaining how the basic fundamentals of supply and demand set market direction, the importance of a comprehensive marketing strategy, the importance of customer relationships and how contracts and prices are typically negotiated. This paper will use examples from the metallurgical coal (met coal) industry to highlight these points. The paper will also provide a template for developing the critical mine interaction that needs to exist between the marketing department and management to develop a æwhole of mineÆ approach to marketing. It is this core group that will be strategically responsible for delivering the commitments your mine has made to your customers. For mine management not to be actively involved in this process puts at æriskÆ the hard won production and cost efficiencies achieved at your mine and ignores the opportunity to maximise your current and future revenue streams. And whilst this paper recognises that is arguably unreasonable for mine management to become æmarketing expertsÆ, it also argues that it is unreasonable for a mine management to divorce themselves from the process.

Jan 1, 2006

Having worked as a consultant for most of his 40-year working life, mostly as a mineral property valuer, the author has seen many poor valuations. Most were valuations of exploration tenements where the selection of the rather subjective, but necessary, geological inputs raised the main concerns. Those valuations involving iron ore prospects raise particular problems due to the special characteristics of such deposits. Iron ore is more like an industrial mineral rather than precious or base metals and Reserves are determined not by a traditional cut-off grade but by customer specifications. This is intended to be an overview/keynote paper on the current state of the growing (yet consolidating) Australian Iron Ore industry. It has now moved beyond Western AustraliaÆs æPilbara Big TwoÆ of Rio/BHPB (with the emergence of the irrepressible FMG and Hancock Prospecting) to include the YilgarnÆs æMidwest ManyÆ (including US re-entrant Cleveland Cliffs through Portman) and projects in other States. Ore types have moved from haematite Brockman to martite-goethite Marra Mamba (including the RobeÆs mesas and below water table Yandicoogina CIDs) and magnetite ore types. There are DSOs and secondary process feed. Mineral valuers have to reflect today upon these and many other determinants of value when choosing the most appropriate methodologies to adopt when technically assessing and valuing exploration tenements containing iron ore. Set against a frame work of the JORC Code (2004) and VALMIN Code (2005), the general valuation issues involved in using the cost methods (eg multiple of exploration expenditure), market methods (eg comparable sales, rules-of-thumb and joint venture terms) and income methods (eg synthetic discounted cash flow (DCF)/net present value (NPV) modelling) are discussed. Relevant factors when valuing iron ore properties are discussed, eg ore type, lump/fines ratio, stripping ratio, water table, impurities and grade, particularly the JORC confidence category of the identified mineralisation. Remoteness and access to existing rail infrastructure is a key consideration.

Jan 1, 2007

The optimisation of capital in the total planning context has broadly two components: ò maximising the efficient utilisation of capital against competing capital demands; and ò maximising the efficiency with which the industry's capital requirements are sourced. This paper focuses on the latter of these two concepts, as I wish to highlight that within the coal industry the inefficient sourcing of capital has resulted in the inefficient utilisation of capital. In discussing the optimisation of capital within the coal industry I would like to outline three fundamental issues which currently impact the industry and its application of capital: Initially, from the perspective of an independent investor, the perceived risk associated with investing in a volatile industry cycle has not permitted appropriate funding structures to be created thus leading to an inefficient utilisation of capital. Secondly, investors seeking out a windfall gain have established a practice of trading in the assets rather than encouraging recapitalisation. And lastly the mismatch of supply and demand leading to the establishment of new projects which include a percentage of offshore investment has fostered an environment of lower returns and subsequently a dilution of capital.

Jan 1, 1991

By E Ahern

In exchange for issuing minerals rights from the Crown Mineral Estate to explorers and miners, the Crown expects a æfair returnÆ on this investment, ultimately for the benefit of all New Zealanders. In the case of mining permits, this return is in the form of a tangible asset û royalties from mining activities. But for exploration activity, the return sought by the Crown is an intangible asset û information. The information obtained serves three purposes û in helping Crown Minerals to set work programme conditions during permit allocation, for monitoring the performance of permit holders in accordance with permit conditions, and for archiving and making available for future interested explorers and other parties. Difficulties can arise during the allocation and monitoring process when either party has more information than the other that is not shared. To date not enough emphasis has been placed on the intrinsic value and content of the information generated by explorers and the importance this information can have in the exploration process leading to new mineral discoveries. For attracting exploration investment, the quality and availability of such information, combined with other geoscientific data, is a fundamental determinant for potential explorers when choosing to explore in a global market, and strongly defines the mineral prospectivity for a country. This is something the Australian States and other jurisdictions seeking mineral investment learnt long ago, and who now provide substantial amounts of cheaply or freely available packaged geoscientific datasets, increasingly over the Internet. To have a vibrant mineral exploration industry so that the benefits from the mineral estate can be realised for all New Zealanders, a shift in emphasis to the value of its mineral information base itself is required. Such an approach is befitting of a true Knowledge Economy, and would enable the Crown to make better-informed decisions regarding utilisation of its natural resources.

Jan 1, 2002

IN preparing a sample of refined lead for analysis, it is necessary to exercise great care to avoid contaminatien, as the amounts of the various impurities present in market lead are very small. The lead is cut into convenient-sized pieces, which are flattened out with a hammer, so that, on putting tbe lead through the rolls, strips of about one inch in width and Ij32iu. in thickness are obtained. The hammer, anvil, and rolls should be carefully cleaned before use. The strips oflead are cut up into pieces of about one inch square. If the lead is roIled out very thin and cut up into small pieces there is considerable risk of the acid acting too violently and causing loss through frothing over. A blank assay on all the reagents used should becarried right through, along with the actual analysis of the lead. This is of the greatest importance, particularly with regard to the determination of such impurities as iron, sulphur, arsenic, and antimony.METHOD OF ANALYSISThe method of analysis is as follows: Take two lots of 600 gIm. each, place in a large beaker, add 2000 cc. distilled water and 750 cc. concentrated HNOs. Cover with a clock glass and warm on a hot asbestos plate until all action ceases. (If any white precipitate forms, filter off and examine for Sn and Sb.) Add 420 cc. H2S04 (1-1), and stir well while adding the acid: Allow PbS04 to settle, pour off the clear liquid into a 12-in. porcelain evaporating dish, and start evaporating down, the dish being placed directly on an 8-in. ring gas burner. Wash the precipitate three times by decantation using approximately 1200 cc. hot water for each washing, and stir well...

Jan 1, 1922

Mineral resource estimation is commonly based on the accumulation of a series of local estimates. At times, the distribution of these grade estimates is not appropriate to the grade distribution of the data on which the estimates are based. Mineral resource grade estimation has an increased potential of being in error as the grade variability increases. As the mineral commodity value increases, greater grade variability within the mineral resource is tolerated. This paper directs its attention to mineral properties where the data average grade is 20 per cent or more than the data median grade at a specific cut-off grade. A mineral resource estimate is enhanced if it is supported by graphs which demonstrate that the sample data have been separated into appropriate geological domains. Each geological domain has a unique grade distribution signature, which can be graphically demonstrated simply and objectively. This signature will usually be evident well before the Indicated mineral resource estimates are available. The paper looks at the use of the log probability and MedAve plots to assess how effective domaining has been. It further outlines how the MedAve plot can be used to assess the integrity of the mineral resource grade estimate within a geological domain with the data on which it is based. The paper suggests that the overall grade of a mineral resource at any cut-off grade will be closer to the data median grade rather than the data average grade. Tips are provided to ensure that the odds reflected in the data grade distribution are not ignored and hence the risk that the project is affected by unrealistic estimates of the overall mineral resource grade is reduced.

Jan 1, 2003

By H Kundapen, B Bolton, S Miller

The Ok Tedi porphyry copper and gold mine is an open-pit operation located within the Star Mountains in the Western Province of Papua New Guinea and is situated near the headwaters of the Ok Tedi-Fly River system. The climate is equatorial sub-alpine with rainfall ranging from five to ten metres per year. Mining commenced in 1984 and to-date approximately 500 Mt of waste rock has been produced. A failing waste rock dump system operates whereby the dumps are eroded by tributary creeks of the Ok Tedi. It is estimated that approximately 250 Mt of waste is retained within the upper reaches of the river system. The waste rock comprises both potentially acid forming rock and limestone and to-date the overall waste has been acid consuming. However, the long-term mine plan identifies declining limestone production and hence an increasing risk of acid generation over the remaining years of the operation. A program was initiated to determine the net acid producing potential (NAPP) required (ie target NAPP) to minimise the risk of acid generation within the waste rock dumps. The results from this program provide guidelines for an operational target NAPP strategy to provide sufficient acid buffering across all size fractions in the waste rock dump for long-term ARD control. Implementation of this plan requires additional limestone to be mined and co-disposed with ROM waste rock.

Jan 1, 2003

IN any assay office it is of paramount importance to keep the men interested in their work; and in order to do this, men on routine work, such as lead, zinc, and sulphur deterrrrinations, slag analysis, etc, should be changed around monthly. This gives some variety and helps to keep a man's interest on his work, so that better work results. It may be maintained that to keep a man on the same class of work indefinitely makes him more expert at his work. This is certainly true; but in assaying, where accuracy is so essential, it is absolutely necessary for a man to keep his mind on the work, and not 'get' into a mechanical method of working. He is also on the alert to discover means for shortening his analytical methods, and his capacity forwork is increased. Another advantage is that the men get a good all-round training, and one is never at a loss to replace a man on any class of work when he is absent from any cause. This tends to smoother and more efficient running of the assay department. In industrial assaying it is often advantageous to have a result quickly, so that it will be of maximum benefit in the running of some part of the plant, In such a case it pays to sacrifice a little accuracy to speed up a method. The shortest method is less costly, and a quick approximate method is all that is required to give the superintendent the requisite information. Time is thereby saved, and the cost is less. In carrying out assaying for any large industrial plant, such as a smelting works, there is always a tendency for superintendents running the different departments to send in more samples for assay than are absolutely necessary when no system of costing is in operation. Some of these samples may involve a lot of work and heavy expenditure, as, for example, the estimation of only one impurity in a sample of refined lead. If the superintendent knows that the cost of assaying all samples sent in by,him is charged up directly against...

Jan 1, 1922

The face of project evaluation is changing continuously, making it ever more critical to get a clear understanding upfront of the objectives, decision-making processes and criteria of the project proponents. Requirements are usually significantly different for emerging æjuniorsÆ compared with long established major mining houses and companies in developing countries compared with western companies. Requirements are also different for different types of evaluations, such as due diligence studies compared with feasibility studies of æownedÆ projects and there are often key misunderstandings around the use of the term æbankableÆ. Further, it has become increasingly important with increasingly remote and lower quality resources to understand risk relativities such as infrastructure compared with the core processing facilities. This has also driven the need for more trade-off studies to determine the best balance between critical issues, such as optimisation of the interface between mine and processing plant, capital versus operating cost and automation versus labour. In every project evaluation, it is also critical to consider emerging trends and changing requirements and standards such as sustainability and community interface. Finally, the inescapable drive to reduce time to market has driven changes such as increased use of more standardised designs and innovative approaches to the transition from project development to execution. This paper begins with a brief review of the different objectives and risks of each project development stage to establish a framework for subsequent discussion of the different requirements of different types of companies in different locations, different types of evaluations and different types of projects and project components. This is followed by a review of changing requirements and standards and some innovative developments in sustainability and community interface are presented. Finally, the paper outlines a number of developments in the area of operational readiness planning that focus on minimising the time to achieve maximum return on investment.

Jan 1, 2009

By Kavetsy A

In surface mining operations, the ease with which a muckpile may be dug is a dominant factor in mining efficiency. Within broad limits this is largely independent of the fragment size dis- tribution, since the equipment used to move the broken rock is generally larger than in underground mines. In such cases, muck- pile shape and voids ratio within a muckpile heavily influence mine productivity. In a particular operation, the muckpile shape after blasting should be tailored to the digging equipment being used. A front- end loader is best suited to a low, flat-lying, loose muckpile, because of its fairly good mobility and small break-out force with its bucket. In contrast, a rope shovel lacks mobility, generates a much larger break-out force with its bucket, and fills its bucket in a vertical filling motion. Therefore, it is ideally suited to well fragmented, steep faces. In situations where a dragline is used, the requirement for a suitable muckpile depends on the operat- ing scheme of the dragline. For a conventional highwall key method the preferred work- ing level of the dragline is the same as the highwall, so that the dragline may sit over its key. In this situation, the ideal muck- pile shape involves relatively little displacement of the fragmented rock, with a minimal "power trough" at the back of the blast. In throw blasting, on the other hand, it is desirable to cast as much of the spoil as possible across the pit. It is then necessary to optimize the blast design by maximizing the throw percentage under any necessary constraints (e.g. damage, vibration, flyrock, explosive cost).

Jan 1, 1988

By R Lloyd

Coal Services (Health and Safety Trust) funded ARRB Transport Research Ltd to investigate fatigue and performance of truck drivers over consecutive shifts. The main questions were to assess: What is the most important contributor to acute fatigue in mining? Is it length of shift (eg eight hours versus 12 hours) or is it time of day (eg circadian effects)? What is the limit of successive day or night shifts before chronic fatigue affects operator performance in open cut mines? The project methodology included utilising ARRB Fatigue Monitoring Devices (forced-choice stimulus reaction) in eight haul trucks, testing 24 subjects over several weeks. Each subject filled in a Fatigue Risk Questionnaire on lifestyle and health. Operators worked a 14-night, one day off, 13-day roster of 12-hour shifts in a fly-in/fly-out operation with excellent opportunities for restorative sleep between shifts. A total of 3500 hours of real-time data was collected, representing the first set of objective, real-time driver performance data for Australian mining. The data showed that for a single night of driving haul trucks, there appears to be no effect on operator fatigue from the amount of time on task (for the 12 hours). In fact performance was worse through the first eight hours than the last four. The circadian influence had a stronger affect than working more than eight hours. Of the 14 nights worked at the site, nights 13, 14, seven and two respectively, were the worst. This presents a conundrum for policy makers who may like to place caps on working hours or rosters in the hope that it will alleviate the fatigue issue. It will not. The major finding within this study is the combined influence of circadian rhythms (human body clock) and individual variability on performance. The lifestyle habits and the health of individuals have a profound effect on operator performance as shown by the strong positive correlation between high fatigue risk scores from the Fatigue Risk Questionnaire and poor performance. An individualistic approach would appear to have the best chance of reducing high potential incidents due to fatigue through successive nightshifts.

Jan 1, 2005

By B Roberts

The Department of Industry and Resources (DoIR) is responsible for several sets of legislation, which, among other things, regulate the storage, handling and transport of dangerous goods as well as every aspect of the life cycle of explosives in order to prevent explosions, fires and spillages. The legislation with particular relevance to explosives includes: The Explosives and Dangerous Goods Act 1961; the act deals with the storage, manufacture, sale, import, authorisation and use of explosives. It is primarily framed for use of explosives and fireworks in the general community but also has relevance for storage on mine sites. The Dangerous Goods (Transport) Act 1998; this act regulates the transport of explosives on public roads, but not on mine sites. The Mines Safety and Inspection Act 1994 (MSI Act); this act and supporting regulations deal with the full spectrum of occupational health and safety in the mining industry. There is a substantial section in the regulations dealing with the use of explosives at a mine site.DoIR has identified the need for security upgrades of the Government Explosives Reserves, the need to tighten security measures at mine sites, the need for improved security checking for licensed shotfirers and the need to restrict the availability of explosives to authorised people who have had appropriate security checks. It is also clear that we need restrictions on the sale and use of ammonium nitrate (AN). A number of additional security measures are being proposed and all proposals are being refined by ongoing industry consultations. These will be adopted into new explosives regulations in association with the new Dangerous Goods Safety Act 2002 (DGS Act). Government finalised the act in June 2004. The act remains dormant until new explosives and dangerous goods regulations have been prepared. When the DGS Act and a suite of regulations are proclaimed as a package, sometime between December 2004 and April 2005, the old legislation consisting of the current two acts, will be automatically repealed. It is also proposed that all explosive regulation, including those under the MSI Act will be consolidated in one place under the DGS Act for user friendliness.

Jan 1, 2004

In-pit crushing systems have been known in the mining industry for many decades. The question whether in-pit crushing is a viable option has often been asked. More than 200 mobile and semi mobile crushing systems have been installed worldwide at various locations and applications. Economic pressures have forced mine operators to reconsider the use of a conventional truck-shovel operation and have contributed enormously to the development of in-pit crushing and conveying systems. The in-pit crushing concepts have varying mobility capabilities. These range from fixed, stationary crushing plants to semi-mobile and fully mobile crushing plants. All these systems are operated in connection with a conveying system. In general in-pit crushing systems have technical and economical cost advantages over truck-shovel operation, particularly as mine capacities increase and mines become deeper. The integration of an in-pit crushing system represents a significant up-front capital investment and the mine is only able to depreciate the capital investment over a sufficient mine life including plant capacity to realise the benefit of the much lower operating cost.

Jan 1, 2003

By C J. Larder, S E. Turner

The concept of underground grinding is not new, but to a metallurgist and a mining engineer this could be considered unconventional. The idea of pumping a ground slurry several hundred metres from underground in a single lift could also be considered to present a daunting engineering challenge. Using a practical example of a mine in Australia where the owners have requested not to be identified, this paper challenges the conventional thoughts on these concepts and shows that with basic sound engineering practices the production of a ground slurry from underground could potentially provide significant operating cost savings. The supply of ore from the underground mine is currently drawn from depths approaching 800 m below the surface. The cost of hauling the ore to the existing underground crushing station located 500 m below surface has been steadily increasing. A number of alternatives to reduce the mining and processing unit operating costs were examined by Sinclair Knight Merz (SKM) and the mining company. The most radical of these is the use of hydraulic hoisting of ore at an increased production rate. Numerous questions were asked, such as: How does one get a SAG mill or an HPGR crusher underground? Where does one locate a grinding mill underground? Does the technology exist to pump the slurry to surface in a single lift? What will be the cost benefits? What are the risks involved? The study covered the two main technical issues underlying the potential benefits. Firstly, technical evaluations were undertaken on the pumping technology currently available for single and multiple lifts to surface. Secondly, the issues relating to the feasibility of delivering and locating a SAG mill underground were reviewed. Although the capital costs for this project are significant, the operating cost savings showed a potential payback period of less than two years, and furthermore provide the basis for an increased mine life, especially at lower metal prices.

Jan 1, 2005