Search Documents

By H. Lyn Bourne

This is the eighth annual tabulation of royalty information. Again this year, some of the older information has been deleted to make room for nearly 30 new entries. Several articles and publications have appeared recently that relate to mineral royalty or mineral valuation. R. B. Parsons wrote "Mining agreements, royalties and profits" (CIM Bulletin, November 1988). He distinguished between net smelter return (NSR) and net profit interest (NPI). Parsons used examples to show the difference between these royalty payment methods. Mining Engineering (January 1990) carried an article by H. V. S. Tingley entitled "Using business due diligence to help evaluate mineral deposits." The article identifies some factors that must be examined during mergers or acquisitions in the mining industry. Since each mining operation is unique, each has risks and opportunities that need recognition and evaluation. The author suggests that a team is necessary for a proper evaluation because no one person has expertise in all of the factors that must be examined. Also in January's Mining Engineering was "Limestone mining: Reserves and valuation," by B. C. Lewis and R. P. Moran. They presented two case studies of valuation of limestone reserves. One was a 109-hm2 (270-acre) parcel in West Virginia and the other a 121-hm2 (300-acre) tract in Alabama. The authors discussed risk, discount rates, and royalty methods as financial parameters in valuation of limestone reserves. Two papers were presented at the SME meeting in Las Vegas, NV in 1989 that bear mention. J.G. Russell's talk was entitled "Valuation of industrial

Jan 1, 1990

By Steve Kral

Philip M. Hocker is president of the Mineral Policy Center (MPC), a Washington, DC-based, non-profit organization formed to "address the environmental problems that are caused by mineral development in both the hard-rock mining and onshore oil arenas." Hocker has been involved with resource development and environmental policy issues since the 1970s. He has been a plaintiff in several lawsuits regarding environmental management of federal onshore oil and gas leasing. He was also active in the 1987 campaign to pass the Federal Onshore Oil and Gas Leasing Reform Act. Hocker served on the board of directors of the Sierra Club from 1980 through 1986. He is also a member of SME and spoke at the welcoming luncheon and keynote session of the SME Annual Meeting and Exhibit, Feb. 14, 1994, in Albuquerque, NM. In his role as president of MPC, Hocker has become a major player in the ongoing battle concerning mining law reform. And, while the mining law issue is the most visible and controversial issue confronting the mining industry and MPC, Hocker's organization is also active in clean water reform and other public policy issues that concern natural resource development and the environment. Hocker and MPC invoke a wide spectrum of reactions from the mining industry, most of it negative. Even so, the editors of ME decided that SME members should hear from Hocker his views on domestic mining, including mining law reform, clean water legislation and other environmental issues facing the industry.

Jan 1, 1995

By John E. Frost

The Gibralter Mines Ltd. complex is 61 km (38 miles) north of Williams Lake in central British Columbia, Fig. 1. The discovery of these deposits evolved in stages such that each stage revealed a bigger piece of the elephant. When the elephant was mostly revealed, Placer Development Ltd. brought the property into production. Although Gibralter is aporphyry copper deposit, it is certainly not a typical one. Copper and minor molybdenum mineralization occur in a foliated and saussuritized quartz diorite. Ore bodies tend to be tabular in form because foliation exerts a major control on localizing mineralization. A generalized geologic map of the Gibralter-Pollyanna area is shown in Fig. 2. Mineralization was first identified in 1917 in the Pollyanna area. Several shallow pits were sunk on flashy, but low grade, lenticular quartz veins. Duval Corp. made the initial commercial discovery, the Pollyanna ore body, on what were then called the Pollyanna claims. These claims, staked by R.C. Glen and C. Gennis in 1963, were the first to be optioned by Duval in British Columbia in October 1964. Placer Development joined Duval in late 1966 as a 50% joint venture partner, and after optioning the adjoining Gibralter claims, proceeded to evaluate and develop the four ore bodies that make up the Gibralter deposit. The Gibralter claims south of the Pollyanna claims provided the name for the Gibralter deposit.

Jan 1, 1991

By Steven W. DeCou, Marcus R. Jensen, Stephen Navin

The Lake Mead Intake No. 2 is a project constructed for the Southern Nevada Water Authority which includes a 12-foot diameter lake tap and intake shaft constructed in over 225 feet of water; 1650 feet of 16x14-foot horseshoe-shaped tunnel leading to a forebay that is 165 feet long, 35 feet tall, and 30 feet wide; twenty-two 4-foot diameter steel lined well shafts extending 325 feet from the ground surface to the forebay; 3500 feet of 12-foot diameter pipeline crossing a bay in Lake Mead that has water depths of up to 80 feet; and 2700 feet of 9-footdiameter steel-pipe-lined tunnel. Major site grading for a future pumping station in the area above the forebay is also included as part of the project. The project is on the schedule’s critical path for completing the first phase of a $2 billion water supply program for the Las Vegas Valley. In this paper, the owner, the designer and the construction manager present a discussion of the risk management strategies that were used to control costs, minimize project delays, and facilitate problem resolution. The discussion includes an assessment of the effectiveness of the risk management strategies in meeting these objectives. This paper will be of interest to owners and engineers planning underground projects, especially those projects that present unique risks during the construction phase.

Jan 1, 1999

By Joseph C. Rota, Charles E. Ekburg

Introduction The Gold Quarry gold deposit is the largest bulk tonnage epithermal gold deposit in northeastern Nevada to be developed by Newmont Gold Co., formerly known as Carlin Gold Mining Co. Exploration and development of the deposit extended over a period of nearly 50 years before bulk tonnage mining became economically feasible. Proven reserves at Gold Quarry are currently estimated at more than 255 t (8.2 million oz.) of gold, accounting for more than 40% of the total Carlin Trend mineable reserves for 1986. Milling began in late 1985; dump leaching of lower grade ores began in May of 1986. The mill has exceeded the initial design throughput rate of 6.3 kt/d (7000 stpd) and is now processing more than 8 kt/d (9000 stpd). The dump leach facility will process more than 7.3 Mt (8.1 million st) of lower grade ores in 1986. The Gold Quarry ore body is to be developed by an open pit that will eventually be 1830 m (6000 ft) long, 1220 m (4000 ft) wide and 300 m (1000 ft) deep. The mine currently produces 77 kt/d (85,000 stpd) on a 24-hour-a-day, seven-day workweek. Planned pit production will increase to nearly 168 kt/d (185,000 stpd) in 1988. Production equipment currently includes one Demag H-/285, three Komatsu PC-1500 hydraulic shovels, two Cat 992C loaders and 21 90 to 135 t (100 to 150 st) haul trucks. Mining is conducted on 8 m (20 ft) benches within the Paleozoic

Jan 4, 1988

By Pat DeWilliam

The Yakobi nickel-copper deposit is located essentially at tidewater in the east-central part of Yakobi Island, about 16 1 airline km (100 airline miles) west of Juneau, and can be reached by float plane and boat from Juneau and Sitka. The fishing village of Pelican, population 400, is situated 14.5 km (9 miles) to the east. An unimproved road, approximately 4 km (2.5 miles) long, connects a dock site at Lisianski Strait with the main part of the deposit known as the Basin Area (Fig. I). Other mineral occurrences are known as the Takanis, Flapjack, and Beach Areas. Another smaller nickel-copper deposit is located about 32 km (20 miles) to the south on Western Chichagof Island and is known as the Mirror Harbor nickel-copper deposit. The original discovery of the Yakobi deposit was made by S.H.P. Vevelstad about 1920 and a 47.5-m (156-ft) long adit was driven on the southwest side of the deposit in the Basin Area. The deposit was examined by J.R. Van Fleet of Union Carbide in 1930 and by J.G. Fairchild in September 1931. Stanley and Yates of the International Nickel Co. of Canada (Inco) visited the property in August or September 1937. In 1942, the controlling interest in the deposit, covered by 124 unpatented claims, was said to be held by Vevelstad and associates

Jan 1, 1991

By Robert C. Jones

The Henderson Mine, a new large scale underground development, is being developed by AMAX. The mine site is located about 50 miles west of Denver, Colorado, adjacent to the east side of the Continental Divide. The mine's three access shafts are in a narrow alpine canyon at an elevation of 10,400 feet. The ore body of molybdenite is to the south of the shafts, 3,000 feet below the surface of nearby Red Mountain. The ore extends over 800 feet vertically and is about 1,700 feet by 2,200 feet horizontally. The eastern and southeastern boundaries of the deposit are still to be defined at the present time. Development mining is advancing at the mine site on a three shift, seven-day basis at the rate of about 2,000 feet per month. About twelve miles of heading have been driven at the present time, and work to sink No. 3 Shaft has started. Development mining was begun in 1967 with the sinking of No. 1 Shaft. This shaft is fully concreted, 23 feet in diameter and 2,441 feet in depth. It is the mine ventilation exhaust conduit. It is also used for development muck hoisting, stand-by mine water pumping and secondary access to the 8,035 foot level. This level is the mine exhaust ventilation level and was mined principally by conventional rail mining methods. From this one station at the 8,035 foot elevation a 5% ramp was driven to the initial production horizon at 8,100 feet with diesel rubber tired mining equipment. Subsequent mining has been entirely by mobile diesel equipment at the mine site.

Jan 1, 1974

By Robert W. Waytulonis

Miners working in underground mines where diesel equipment is used are exposed to exhaust pollutants. These include carbon monoxide (CO), carbon dioxide (CO,), nitric oxide (NO), nitrogen dioxide (NO2), sulfur dioxide (SO2), hundreds of different hydrocarbons (HC) and particulate matter. Evidence from animal inhalation studies and limited epidemiological investigations have led the National Institute for Occupational Safety and Health (NIOSH) to recommend that ‘... whole diesel exhaust be regarded as a potential occupational carcinogen ...’ NIOSH further stated that ‘... the excess cancer risk for workers exposed to diesel exhaust has not yet been quantified, but the probability of developing cancer should be decreased by minimizing exposure…’ The International Agency for Research on Cancer(IARC) reached a similar conclusion, saying that ‘... diesel engine exhaust is probably carcinogenic to humans.’ Before these declarations, there was insufficient evidence concerning the carcinogenicity of diesel exhaust. It was well known, though, that diesel exhaust caused less severe problems, such as headache, eye irritation and unpleasant odors. In 1988, a milestone was reached in the Mine Safety and Health Administration (MSHA) regulatory process. An advisory committee recommended a three-tier approach to regulating diesels used underground-approval of diesel equipment, safety and health. Diesel particulate matter may be specifically regulated. In addition, ambient air quality standards are being proposed that will establish a new standard for CO2 and lower the permissible exposure limits for the NO2, CO, SO2 and formaldehyde emissions that originate from diesels and other sources. Additional safety and emission restrictions are also proposed for diesel engines in coal mines. The goal of the US Bureau of Mines (USBM) diesel engine research program is to minimize the health and safety problems associated with underground diesel equipment use. Part of this program is focused on reducing exhaust emissions from diesel-powered equipment used in underground mines.

Jan 1, 1993

By R. V. Hunter, J. F. T. Agapito

Introduction Significant increases in extraction ratio on the order of 6% to 8%, equivalent to as much as 142 t/m (48 st per ft) of panel, have occurred at the Big Island trona mine during the last five years with the help of a practical rock mechanics program. This increase in resource recovery also has contributed to improvements in productivity. Both conventional and continuous machine mining have been used to mine two flat-lying trona beds at depths of 250 m and 260 m (820 ft and 853 ft) in the Green River Formation in southwestern Wyoming. Conventional room-and-pillarmining originally was conducted in panels with extractions of 5 8% to 60%. The use of yield pillars has allowed the panel extraction in increase to 66%. Continuous machine mining was introduced, with a 64% extraction ratio using long, narrow pillars and wide rooms. Further improvements in resource recovery seem feasible in light of present mining experience. The rock mechanics program consisted of field instrumentation to determine the pillar and roof response hole locations. to mining and computer modeling to evaluate the stability of various layouts, which were then adopted for mining. Mining background Stauffer Chemical Co.'s Big Island mine and refinery are located 40 km (25 miles) northwest of Green River, WY. Underground mining operations supply trona, a sodium mineral, to the refinery to produce soda ash. The room-and-pillar method is used to mine two 3 to 3.6 m (10 to 12 ft) thick, flat-laying seams at depths of about 250 to 260 m (820 to 850 ft). Mine production in 1986 was 2.3 Mt (2.5 million st). These were supplied through both conventional and continuous machine mining sec-

Jan 1, 1989

By Sheldon P. Wimpfen

Man is a short time resident of the planet Earth. He does not have the memory to fully comprehend just what is going on. His span of knowledge can be related to the life of the world to see that this is the case. A museum at Grand Canyon features a geologic clock that compresses Earth's age of 4.5 billion years into 24 hours. Man's estimation of the earth's age has changed radically in the past half century. In 1930, one prominent geologist asserted that the age of the Earth was ". . . at least 600 million years." Later, physicists used radioactive clocks to conclude that the Earth's age was 1.6 billion years. More recently, geologists have found rocks in northwestern Australia estimated to have formed 4.5 billion years ago. As we learn more about what is underfoot, the estimate of Earth's age might change again. The Grand Canyon's 24 hour clock shows that the dinosaurs were the dominant life form for 165 million years. Then an event occurred that wiped them out about 65 million years ago. The prevailing theory is that an asteroid struck the Earth and generated enough dust to wipe out the vegetation upon which most dinosaurs fed. During Earth's existence, there have been at least 12 such mass extinctions - the worldwide disappearance of diverse animal groups. On a planet that has been around for 4.5 billion years and that may continue to exist for another 4.5 billion, it seems reasonable to expect that further mass extinction's will occur. According the Grand Canyon's 24hour clock, the 165 million year reign of the dinosaurs amounted to about five minutes. On that 24 hour clock, the world has been dinosaur free for almost two minutes.

Jan 1, 1993

In 1991, environmental issues related to coal mining continued to be an integral part of managing a cost-effective operation. Environmental regulations and their implementation can create considerable cost burdens on operating mines. Environmental responsibilities require management decisions to be made on a whole systems approach that is comprehensive in costs and consequences. Most of the regulatory activity in 1991 that affected coal was related to reauthorization or revision of several pieces of legislation. Issues related to the reauthorization of the Clean Water Act, the Resource Recovery and Conservation Act (RCRA) and Abandoned Mine Land. Clear Water Act considerations will encompass discharge standards, wetlands issues and proposals to regulate ground water quality at the federal level. Discussion regarding RCRA includes efforts to expand regulatory authority into the area of coal mine waste. That is currently regulated by the Office of Surface Mining (OSM). Another RCRA consideration will be the disposal of coal combustion byproducts. Abandoned Mine Land reauthorization continues the Abandoned Mine Land tax on coal operators. This tax has been in effect since 1977. Regulatory revisions were also proposed by the Department of Interior on valid existing rights, subsidence, federal coal leasing programs and OSM's troubled Applicant Violator System. Industry officials have been critical of the revisions. A federal appeals court found that evidence supported claims by Whitney Benefits, Inc. that the passage of the Surface Mining Control and Reclamation Act (SMCRA) deprived the owner of full economic use of its property. Before SMCRA's passage, Whitney established an operating agreement with Peter Kiewit Sons Co. to mine coal.

Jan 1, 1992

By James N. Prudden

Measurable physical characteristics of placer deposits include geological, geomorphological, sedimentological and mineralogical features which produce the complimentary ingredients with which one can formulate an economic evaluation of these complicated deposits within the confines of a well established geological model. Heavy mineral suite composition and character will change downstream from the provenance area and will compliment the related depositional environment. Careful attention to gold particle characterization during the exploration phase can indicate new source additions, enhance deposit evaluation methods and greatly assist in maximizing metallurgical efficiencies. Failure to recognize and measure these important features very frequently leads to frustrated and unrewarding placer evaluation goals. Increased general acceptance of sedimentology in the gological appraisal of ore bodies has progressed into the science of clastic sedimentalogy using measurable parameters to evaluate minable units. This branch of geology has developed as a tool in locating, defining, and mining alluvial concentrations of valuable heavy minerals. The repeatedly successful application of this valuable tool in conjunction with other classical geological methods can be directly related to the development of a geological model which formulates the distribution of detrital gold. This use of multiple geological techniques permits the transfer of routinely derived data to management. Standardized nomenclature permits the transmission of uniform information thereby promoting credible property evaluation. This approach enables organizations to critically assess large numbers of potential mining targets for definitive feasibility studies. Sedimentology must play an integral role in the evaluation of any alluvial deposit. The sampling problems associated with particulate gold are well known and frequently cause perplexing evaluation problems. Consequently, properly directed and executed

Jan 1, 1987

By Charles H. Jacoby

Introduction Although, in general, the openings created in domes or diapiric type salt deposits during mining operations are larger than those created in bedded deposits, the openings in bedded salts are of significant lateral extent. Thus, this paper will deal primarily with the dome deposits of the Gulf Coast and more specifically with the Avery Island dome operated by the International Salt Company where recent development activities have materially increased the sizes of previously standard openings. Geology The geology of salt deposits is the governing factor in the rock mechanics associated with the opening which is being created in the salt. Bedded salts are customarily characterized by having experienced solution along the interface between the top of the salt and the overlying bed. Thus, as the salt slowly dissolves there has been left behind a layer of laminated insolubles which is often incompetent. In most cases, this incompetent rock must be supported by a thickness of bedded salt which is left in the roof as support. Where this salt is of secondary deposition (recrystallized halite) with included moisture, additional thicknesses of roof salt are necessary to achieve stability. The salt which forms the domes of the Gulf Coast regions is from the Louann formation of the Jurassic period. These formations are dipping toward the Gulf of Mexico so that the upper tier of domes which have formed across northern Louisiana in an east-west direction into Mississippi and Texas have a salt source some 10 to 15,000 feet

Jan 1, 1976

By J. Villeneuve, G. Fourniguet

Simulation of Mineral Processes is now commonly used by the Engineers in charge of plant design or optimization but a good knowledge of the simulation tool is still needed to conduct a project. A new level of algorithm has been defined above the simulator to answer directly to the user's questions. This level has been called the supervisor of simulation, which is using the automation concepts of sensors and actuators. At any place of the flowsheet (i.e., a stream or an equipment), the user may indicate which value could change by graphically implementing an actuator. Then, he can evaluate the effect of the variation of this value at any other place of the flowsheet by inserting a sensor. Thus, by example, it becomes possible to look at the evolution of the recoveries and/or the circulating loads when scanning an interval of the possible teed flowrates. This approach conducts to an increased facility in using a simulator and in analyzing the predictions. It is also a very valuable tool for permitting to characterize the sensibility of the simulation results to the variation of some settings (e.g., load of grinding media, rotation speed, water addition, etc.) or feed characteristics (e.g., flowrate, sizes, grades, grindability, etc.). Thus, the most important variables can be identified for design and pre-control optimization of plants. This new level of simulation will be implemented in a further version of the USIM PAC simulator and selected examples are presented.

Jan 1, 1995

By Chapman Young, Donald E. McCarthy

Many hard rock tunneling projects, where the majority of excavation can be accomplished with TBMs, will still require considerable specialized excavation which can not be done with a TBM. This secondary excavation, involving cross cuts, galleries, flattening of the invert, increases in bore diameter, et cetera, may be accomplished with conventional drill and blast, applied on a small scale and usually with fracture control techniques, or with mechanical splitters. The problems of using explosives in many of these cases and the high cost of mechanical splitting excavation make the consideration of other approaches attractive. The PCF rock excavation method, which has recently been reduced to commercial practice for mine-development excavation, offers an attractive alternative to drill and blast and mechanical splitters. With the PCF method the rock is excavated utilizing a small-charge, propellant-driven, controlled, penetrating-cone fracture process. Excavation is carried out continuously by combining the PCF hardware with integrated mucking capabilities on a carrier which remains at the excavation point. In addition to the benefit of providing for complicated excavation geometry, the PCF method also causes minimal damage to the remaining rock which will significantly reduce ground support requirements. In very bad ground, the continuous nature of PCF excavation allows ground support to be applied as limited sections are exposed thus reducing both the duration and extent that the ground would be free to move. Data on PCF excavation parameters, as measured in actual mining operations, indicate that crosscuts, galleries and the like could be excavated at considerable cost savings compared to drill and blast or mechanical splitters.

Jan 1, 1995

By J. F. McDonald

On December 8th of last year, the new St. Clair River tunnel was holed-through to Port Huron, Michigan. The tunnel, commissioned by the Canadian National Railway, was needed to replace an existing tunnel that had been built between 1889 and 1890, and had remained in continuous operation until the new tunnel was opened to traffic in April of this year. The original tunnel, after more than 100 years of service, was still structurally sound, but was too small to accommodate the double stacked container cars and other advances in the railroad's equipment that had developed over the years. Prior to the construction of the first tunnel, all freight was barged across the river. It was a slow, expensive process, which in winter was sometimes impossible. The nineteenth century tunnel was built in twenty months, utilizing two shields that mined to the middle from each end. The lining, which is still in excellent condition, consisted of bolted, cast iron segments, with an O.D. of 6.4 meters. It was the first sub-aqueous tunnel built in North American, and it's use of compressed air under the river and hydraulic power on the shields may also have been firsts. The digging was done by hand, and the muck hauled out by mule drawn wagons. Boulders and methane gas were reported to be a constant problem during the drive, and compressed air sickness was common, but when the two shields came together in August of 1890, it was reported that the alignment was within 6 mm. The new St. Clair River Tunnel was constructed for basically the same reason as the original. The larger equipment which the railroad is using today would not fit through the old tunnel, and once more they were forced to ferry the cars across the river.

Jan 1, 1995

By Vernon Miller

In 1986, a subsidiary of Echo Bay Mines Ltd. purchased the McCoy property, 55 km (35 miles) southwest of Battle Mountain, NV. Echo Bay then launched a two-year, $1 15-mil lion capital program to build a mill to extract gold and silver from high-grade ore mined in two open pits - the original McCoy pit and a more recent discovery, the Cove. Engineering on a new mill began in 1987 with the facility coming on line in 1989. It was comprised of a semiautogenous (SAG) mill and ball mill grinding, leaching, flotation, counter current decantation (CCD) and Merrill-Crowe processes. The mill started up on McCoy ore, a rocky material that settled very well in the new CCD thickener system. Production levels were maintained at about 7.2 kt/d (8000 stpd). The situation changed as the McCoy ore played out and increasing amounts of material from the Cove pit-with its oxide, sulfide and carbonaceous ore - were fed to the mill. The problem was the high clay content of the Cove ore. The new ore immediately created production problems, mainly loss of control on the CCD thickeners. With the McCoy pit slated to be shut down in early 1991, it was essential to find a way to efficiently process the Cove ore. Initially, the only way to regain control of the thickeners was to slow down the processing rate and increase flocculant usage, thereby getting the solids to settle in the thickeners. But this had its cost. Production dropped to about 5.9 kt/d (6500 stpd), additional operators were needed and flocculant costs, on occasion, would reach an unacceptable $80,000 per month. Overfloccing led to viscous

Jan 1, 1993

By John P. Dunford, Lewis A. Martin

Researchers from the Spokane Research Laboratory, National Institute for Occupational Safety and Health, in cooperation with engineers from the Department of Mining and Geological Engineering, Montana Tech, Butte, MT, conducted tests to evaluate the tensile strength, fiber count, and adhesion of shotcrete applied to panels at the Chief Joseph Mine, a research and training facility operated by Montana Tech. The tests were conducted in the mine ramp 45 m (150 ft) inward from the access portal at a 15.25-m- (50-ft) long test area divided into five 3-m- (10-ft) long sections. The shotcrete was applied with an Aliva 240.5 machine fitted with a predampener. Different amounts of fiber were entrained for each panel. Background data for the tests were obtained from earlier tests in Nevada, where the typical amount of fiber in the shotcrete is 6.54 kg/m3 (11 lb/yd3). All shotcrete was applied to a minimum thickness of 76 mm (3 in). Cylindrical cores were drilled at the wall-rock interface, and adhesion was tested after 28 days of curing. The goal of this research is to reduce the need to install multiple supports at the advancing face by creating a safer mining system that limits the time miners are exposed to unprotected roof.

Jan 1, 2005

By Edward C. Dowling

The advance of science and technology influences the modern economy in countless ways. Older industries must adapt to changes in the marketplace, while new industries are born by applying new technology to meet consumer needs. In light of declining head grades and increased unit costs in the US minerals industry, new technological developments in the production environment are paramount to maintaining a competitive footing in the international marketplace. Micro-engineering research provides the transition between the knowledge base and the application of new technology on the production level. Economic considerations The primary goal of technical development in the production environment is to reduce unit operating costs. Simply stated, this is accomplished by improving operating efficiencies and productivities on the production level. The goal of micro-engineering research in the production environment is to evaluate promising technologies and develop the criteria necessary to apply them in operations. As such, this process is the first step toward innovation and discovery. Generally, the micro-engineering research is followed by macro-engineering development. In the production environment, there are generally more development projects than can be accomplished in a timely manner. Usually, this is the result of financial and human resource limitations. Consequently, it is necessary to prioritize the work such that the most beneficial projects are accomplished first. By performing a discounted cash flow analysis and using benefit-cost ratios (for non-mutually exclusive alter¬natives) or net present value criteria (for mutually exclusive alternatives), the projects can be rated from best to worst. In this way, the financial and human resources can be best allocated to first complete those projects giving the highest returns before moving on to other activities. Moreover, this information is a prerequisite for management to justify additional financial or human resources.

Jan 1, 1992

Overview In 1992, US coal supply and demand were shaped more by weather conditions and the export market than by the economic recovery. Preliminary data compiled by the Energy Information Administration (EIA) (Table I) show that coal production declined slightly to 902 Mt (994 million st). Consumption, though, rose by about 1 % to 811 Mt (894 million st), trailing the 2.1 %growth in Gross Domestic Product. Contributing to the decrease were a sizable drop in coal exports and some coal stock withdrawals. Consumption increased largely because electric utilities turned to coal to offset a shortfall in hydroelectric generation caused by a drought in the Northwest. Apart from this, the demand for coal-fired generation was dampened by a mild winter in the northwestern and northcentral United States, and a cool summer in the central and eastern parts of the Nation. Coal use by other consumers was about the same as in 1991. The average delivered prices of coal to all consuming sectors decreased slightly in 1992, reflecting soft coal markets (Fig. 1). US coal exporters experienced a set-back in 1992 mostly because of losses in the European market. Total coal exports fell by 6% to 93 Mt (103 million st), the first decline since 1987. Coal stockpiles at the end of 1992 were about 1.8 Mt (2 million st) below 1991, despite stock buildups by some electric utilities in the East. Stocks were built up as a hedge against possible coal miners' strikes after the Feb. 1, 1993, expiration of the contract between the United Mine Workers of America and the Bituminous Coal Operators' Association.

Jan 1, 1993