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By C. V. Deutsch, J. B. Boisvert, M. A. Cuba

The amount of information available for characterizing a deposit increases over time due to the continuous acquisition of data during mining. This additional information is collected from different sources, including geologic mapping, production data and infill drilling. Throughout the lifetime of a mining project, the block model and the mining sequence are periodically updated to account for this new data. In general, the acquisition of additional data increases the accuracy of the block model, reduces uncertainty in ore/waste limits and clarifies the optimal mining sequence. There has been extensive research on mine planning, but current techniques do not consider the decrease in uncertainty as additional information becomes available. Conventional paradigms assume either 1) the kriged model is correct and uncertainty due to multiple realizations does not change the mining sequence, or 2) the mining sequence is unrealistically adapted to each realization. A new paradigm is proposed for evaluating minable reserves of surface mining projects, which accounts for the acquisition of additional information in the design of the long term mine plan. Multiple scenarios characterizing the dynamic nature of mining and data collection are created. In the proposed methodology, the performance of the long-term mine plan depends on both mining and data acquisition strategies. Each scenario considers the same extracted volume for the first period, resulting in a set of scenarios that diverge from a common initial period, accounting for how the mine may develop over time as new data are acquired and provide a more realistic evaluation of reserves with an appropriate level of uncertainty. A synthetic example is presented to illustrate the implementation of the methodology and the benefits over conventional paradigms.

Jan 1, 2013

By Barry R. Doyle, Emma C. Ross

This paper presents a 20-year global account of tunneling in gassy ground demonstrating high probability of schedule delays, cost overruns, worker injuries and fatalities. Causes of these failures are systemic. Gas is seldom characterized in terms relevant to design of effective ventilation systems. Control measures deployed in tunnels are often based on outdated industrial safety codes. A change in approach is needed. This paper describes how to perform a desk study to determine if field investigation for gas is warranted, and lists the content of an effective characterization of gas in a geotechnical report.

Dec 1, 2022

By Justine Ealy, Daniel Yang, Christina Foster

Maintaining stable high walls can be a challenging task. Complex geological and structural features, alteration zones, rock mass properties, and hydrogeological conditions must be well understood to design a safe mining environment. Economic considerations must also be taken into account as the mine operator must provide ore deliveries and protect reserves. However, even when good engineering practices are followed, and proper blasting and mining techniques are implemented, slope movements may still occur. When these slope instabilities are minor, the mine is often able to continue operations with minimal impacts on safety or production. When these occurrences are excessive and coupled with high rates of movement, a robust monitoring system is crucial to continuing mining activities while protecting personnel. This paper summarizes the approach an open pit mine in Nevada took as excessive and rapid high-wall movement was experienced in an integral area. Creative mining approaches, combined with slope monitoring radar technology, were utilized to maintain safe and successful mining activities despite active movement that exceeded an average velocity of 30 inches per day.

Feb 1, 2024

By Meghan Murphy, Yiming Sun, Kush Chohan

DTX is a 1.3-mile-long rail extension being constructed by Transbay Joint Powers Authority to extend Caltrain rail service and future California High Speed Rail service to downtown San Francisco. It includes a 3,352-foot-long mined tunnel with a cross section varying from 50 to 60 feet wide and 43 feet high to accommodate two- and three-rail tracks. DTX will be excavated in mixed-face and Franciscan Formation with ground cover ranging from 40 to 85 feet. This paper discusses how mined tunnel design has evolved since the initial preliminary design phase over 10 years ago. The current design concept for tunnel construction is also discussed.

Jun 13, 2023

By Jacob Grasmick, Bill Newns

Despite ongoing digitization and “hardware” technological advances, geotechnical uncertainty remains the most significant risk in underground and tunnel construction. And, whilst they are commonly held up as an example of the sophistication of the industry, the practice of drafting and using geotechnical baseline reports is subject to a wide range of influences, not all of which support good risk management. Uncertainties in predicting ground behavior, the gap between the pre-construction assumptions, and the systemic response to construction remains a significant technical and communication challenge. Accordingly, this paper presents a framework to quantify geotechnical uncertainty using geostatistics and translate these into practical tools for ground risk management throughout planning, procurement and construction. Adopting even some of the principles of this framework should provide improvements to contract risk management and should assist to minimize the potential for commercial losses.

Dec 1, 2022

By Virgil W. Carmichael

In the Fort Union formation of western North Dakota, eastern Montana and northeastern Wyoming there are immense tonnages of lignite and subbituminous coal that have not yet been evaluated in terms of present economic conditions. Continued expansion of United States energy requirements has focused ever increasing attention on this tremendous resource, particularly as efficiency in mining and transporting of coal, as well as in electrical energy generation and transmission have improved and as hydrogenation and gasification of coal approach economic feasibility. This "total energy" concept for coal includes all of the energy uses that coal offers and has resulted in mergers of oil and coal companies and acquisition of coal re- serves by oil companies, as well as by coal companies and others. There is no doubt that these coals are entering an exciting new era of exploration and development that will result in greatly increased production. As a matter of fact, increased consumption for energy generation is well under way and recognition of the economic feasibility of high-Btu pipeline gas and synthetic petroleum products from coal is imminent. As coal is gradually displaced in steam electric generation by the more exotic fuels and processes, it will be increasingly used as raw material for the synthetic petro-chemical industry and the organic chemical industry.

Jan 1, 1968

By Verya Nasria, William Bent, William Hogan

"The South Hartford Conveyance and Storage Tunnel (SHCST) project is a significant component of the Hartford Metropolitan District’s (MDC) long-term control plan (LTCP), which is overseen by the Connecticut Department of Energy and Environmental Protection (CTDEEP). This project will address a portion of the MDC’s Clean Water Project (CWP), which will reduce combined sewer overflows (CSOs), eliminate sanitary sewer overflows (SSOs), and reduce nitrogen released into the Connecticut River. The purpose of the SHCST project is to eliminate West Hartford and Newington SSOs, eliminate Franklin area CSOs discharging to Wethersfield Cove and minimize CSO discharges to the South Branch Park River. The locations of each overflow are shown in Fig. 1. In 2010, the district prepared a preliminary design report (PDR) for the SHCST project, which included relief of the Folly Brook trunk sewer and proposed to keep the tunnel boring machine (TBM) retrieval shaft within the city limits of Hartford. Figure 1 shows the 2010 PDR recommended tunnel route. Subsequent to the PDR, the objectives of the SHCST have slightly shifted. In accordance with ongoing revisions to the LTCP, relief of the Folly Brook Trunk Sewer is no longer necessary. Additionally, the MDC has decided to perform less sewer separation in the Franklin Avenue drainage area. To replace the sewer separation, new relief points are proposed within the Franklin area and will be diverted to the SHCST. Figure 1 also shows the current recommended tunnel route (Alignment F). During 2012, the MDC conducted an evaluation of the potential of connecting the proposed North Tunnel (originally proposed as an independent tunnel with its own pump station) into the South Hartford Conveyance and Storage Tunnel. This evaluation concluded that the two proposed tunnels could reasonably be connected together and operated as a single tunnel system utilizing the tunnel pump station at the eastern terminus of the South Hartford Tunnel (Fig. 2). It also was concluded that this alternative was less costly than two independent tunnel systems."

Jan 1, 2014

By Randall D. Peterson

Strip mining with draglines and other surface equipment has traditionally been the method of choice for mining shallow deposits. This is particularly true for soft deposits that require little or no blasting. High rates of productivity and low operating costs have set this standard. However, these methods can be improved. Strip mining methods are batch processes and difficult to accommodate in processing. Moreover, they are encumbered with overburden removal, reclamation expense, and human inefficiencies. This paper describes the invention of a novel shallow earth mining technique called the Softwall Mining Method. Softwall Mining is an adaptation of longwall mining for loose earth conditions. The method was specifically invented for recovering phosphatic clay ore from beds in North Central Florida, but is likely to be suitable for a number of other minerals as well. Potential deposits for which the method may be well suited include placers, disseminated deposits in soft host rocks, bauxite, soft coals and lignite deposits, and other deposits where overburden will subside readily and where the ore can be hydraulically broken and slurried. Unit operating cost advantages are expected over the current dragline systems used. The Softwall mining advantages are its high rates of productivity, control and automation of the mining process, reduction of dilution and waste, and elimination of the majority of stripping and reclamation.

Jan 1, 1998

By Robin Dill, Julian Prada, Kathryn Kelly, Brian Hann, Todd Moline

Narragansett Bay Commission’s (NBC) Pawtucket Tunnel Project includes construction of the 11,600-ft long, 30-ft ID, deep rock tunnel. This paper presents insight into the features and benefits of lump-sum, design-build that led NBC to select it as the project delivery method. The use of a design-build contracting process that included proprietary meetings to discuss and obtain feedback on Alternative Technical Concepts as well as to facilitate reaching consensus on modifications to the GBR-B is also described. The discussion includes features and benefits of design-build process that not only addressed NBC’s desired outcomes, but also allowed the Design-Builder to propose several innovative changes to the Base Technical Concepts included in the bid documents, and to develop a GBR-C that was compatible with their proposed means and methods of construction and addressed what they believed to be the more significant subsurface risks on the project.

Jun 13, 2023

By Kathy Kalenchuk

To develop strategic and tactical strategies to manage seismic hazard in a safe and economic manner, it is necessary to understand the spatial and temporal distribution of mine wide seismogenic behavior. Global mine-scale numerical stress modelling provides a means to forward predict seismic susceptibility thereby facilitating informed decision making for the development and implementation of strategic and tactical risk mitigation measures. To make forward predictions of hazard susceptibility using global stress models with reasonable confidence, it is necessary to rigorously calibrate numerical stress models to the observed history of ground reaction. This paper demonstrates quantifiable methods for calibrating numerical models and developing probabilistic prediction criterion using seismic data. The appropriate applications of model inputs (including boundary conditions, constitutive models and material parameterization) specific to global mine-scale modelling are also discussed. Lastly, this paper demonstrates how the calibration process adds value not only to informed decision making, but also to the improved understanding of site geomechanical conditions; including enhanced identification of geotechnical domains and mechanical indicators required for seismic mechanism domaining.

Apr 26, 2022

By R. A. Meyr, K. A. Perry

Following three major mining accidents in 2006, the MINER Act of 2006 was enacted by the U.S.Congress. The U.S. Mining Safety and Health Administration subsequently released the Final Rule on Refuge Alternatives for Underground Coal Mines, which required every underground coal mine to install refuge alternatives to help prevent future fatalities of trapped miners in the event of a disaster. The following paper documents the research that was performed on a structural wall to be used in conjunction with a breathable air system to create a refuge alternative. A 103.4-kPa (15-psi) safe haven polycarbonate wall for use in underground coal mines was designed and modeled using finite element modeling in ANSYS Explicit Dynamics. The successful safe haven wall design was modeled for an actual underground coal mine environment using the explicit finite difference formulation program FLAC3D to determine the responses of the wall and surrounding strata within a mine. A full-scale design was fabricated and installed in an underground coal mine to determine any construction constraints and as a final step in proof of concept for the safe haven wall design. This paper is meant to introduce the reader to a new wall concept to be used in conjunction with current technology.

Jan 1, 2013

By Yiming Sun, John Stolz, Jakob Walter, Drew Mason

The Courthouse Commons SEM Tunnel was excavated within 6 feet of cover beneath two buildings in downtown San Diego utilizing high-precision geotechnical instrumentation. The excavated dimensions are approximately 25 feet in diameter and 328 feet in length connecting two in-service detentionlevel security buildings. Presupport includes large-diameter grouted canopy pipes and smaller pipe spiles. Initial support consists of fiber-reinforced shotcrete with lattice girders. This paper presents observed ground and structure behavior and lessons learned. During construction an unanticipated brick structure was encountered, and methods were developed to improve adhesion of shotcrete to sandy soil and to reduce rebound

Dec 1, 2022

By Moussa Wone, Martino Scialpi, Colin LaVassar, Carlton Ray

The Potomac River Tunnel (PRT) is the next major phase of the DC Clean Rivers Program. The design-build PRT project includes a 5.5-mile-long, 18-foot-internaldiameter tunnel, seven shafts, and two underground connections to existing structures. Major challenges include tunnel boring machine (TBM) excavation though mixed-face conditions within a buried paleo-channel and an approximately 1,350-foot-long rock/ soil transition zone; construction beneath the elevated Whitehurst Freeway; tunneling beneath an existing luxury residential building and existing transit tunnels with limited clearance; and complex coordination with a variety of federal, regional, and local stakeholders. This paper describes the overall project scope, geotechnical conditions along the alignment, and primary design/construction challenges and mitigations.

Jun 13, 2021

By Mike Wongkaew, Brandon Kluzniak, Per Vilhelmsson

Rail access to Ontario International Airport (ONT) has long been a goal of San Bernardino County Transportation Authority (SBCTA) to increase public transit options to ONT and provide incoming ONT passengers improved access to San Bernardino County and the greater Southern California region. This paper describes the planning for the Design-Build-Operate-Maintain (DBOM) delivery of an emerging technology tunnel connection between the Rancho Cucamonga Metrolink station and ONT. The paper discusses key technical considerations, challenges, and opportunities; conceptual configuration development; and construction planning and establishment of the footprint for the underground connection.

Dec 1, 2022

By Wenbing Guo, Gaobo Zhao, Erhu Bai, Brijes Mishra

"Violent damage to overlying strata can occur above the large mined-out space left by high-intensity longwall mining. For the safe mining under the aquifer and surface water body, it is imperative to investigate the criteria of overburden failure degree due to high-intensity mining. In this paper we present the characteristics of high-intensity longwall mining panels and overburden critical failure. Based on the geological and mining conditions of a high-intensity mining panel, 3D numerical models that consider the maximum horizontal principal stress and minimum horizontal stress and their orientations with the panel advance direction were established by using the 3DEC software. Sizes of the panel reaching the critical failure of the overburden under different mining thicknesses (3.5 m, 6.5 m, 9.5 m, 12.5 m, and 15.5 m) were analyzed. Further, criteria of overburden critical failure were proposed for the high-intensity mining. The coefficient of overburden critical failure (Cf) is the ratio of the strike length (Ls) to the mining depth (H). Through curve fitting analysis, a fitting equation between Cf and mining thickness was obtained. The results showed that overburden failure criterion with high-intensity mining panel is 0.38 = Cf = 0.97 with different thicknesses. Field measurements validated the results from the numerical models.INTRODUCTIONHigh-intensity longwall mining refers to a coal mining method with thick coal seam, large panel width, fast face advance rate, and severe damage to the overburden and surface in China (Guo et al., 2018). Violent movement of the roof rock and severe damage to overlying rock strata occur in the large mined-out space left by a high-intensity longwall mining panel, which is a 3D (three-dimensional) structure layout with highly non-uniform stress distribution. Recognition of such fact a will facilitate this overlying rock strata failure problem investigation (Peng et al., 2019).The studies of overlying strata failure due to longwall coal mining have been reported by some scholars with different methods. Kang et al. (2018) studied the sudden massive roof collapse during longwall coal retreat mining by a large-scale two-dimensional physical model and a UDEC numerical model. Ghabraie et al. (2015) researched the mining-related strata movement by applying the three-dimensional laser scanner, optical transducer, and digital image processing techniques to two-dimensional physical models. Wang et al. (2015) analyzed the structural characteristics and fracture failure process of overlying hard and thick main roof by a 3DEC numerical model; this study also investigated the geostress reduction and permeability enhancement redistribution of the adjacent coal measure strata by FLAC3D. Guo et al. (2012) performed a three-dimensional finite element analysis and shared some insights into the dynamic interaction between mining induced strata stress changes, failures, and gas flow patterns. Meng, Shi, and Li (2016) proposed a 3D coupling model between stress and permeability, investigating the dynamics of a stress, permeability coefficient using FLAC3D. Khanal, Guo, and Adhikary (2019) used the 3D numerical modelling approach (COSFOW) to investigate the strata deformation and the change in permeability in the overburden strata due to the underground extraction. However, few studies considered the influence of the horizontal stress on overburden failure in a high-intensity longwall mining panel, and the critical failure criteria of overlying rock strata is unclear."

Jan 1, 2019

By James T. Tanner

Mica is a generic term that applies to a group of complex aluminosilicate minerals that have a sheet or plate-like structure and with different chemical compositions and physical properties. All micas form flat six-sided monoclinic crystals with remarkable cleavage parallel to the direction of the large surfaces, which permits them to be split into optically flat films; as thin as 1µm in thickness in some cases (Rajgarhia, 1987). Some micas are more easily split than others. For example, muscovite mica found in pegmatites is more easily split into thin films than is phlogopite. Mica found in mica schist is not as easily delaminated as mica found in weathered pegmatites. According to Dawson (1 949), the commercially important mica minerals are: Muscovite-potassium mica (colorless to pale green and ruby) Biotite-magnesium-iron mica (dark brown to black) Phlogopite-magnesium mica (pale yellow to dark brown) Vermiculite-hydrated biotite or magnesium-iron-mica (bronze yellow flakes) Lepidolite-potassium-lithium mica (pale lilac to deep purple) Some micas of less importance are: Zinnwaldite-lithium-iron mica (gray to smoky brown) Roscoelite-vanadium-potassium-magnesium mica (various shades of green and brown) Mica, principally muscovite, is widely used for industrial applications because of its exceptional physical, chemical, electrical, thermal, and mechanical properties (Table 1). Phlogopite and vermiculite follow muscovite in importance. Biotite finds very little commercial application at the present time. Commercially, mica is used in a number of forms. These forms and their description follow: Sheet mica refers to books of mica either mined from hard rock (pegmatites) or from loosely consolidated clayey material formed from the weathering of pegmatites and alaskites. These books can be readily split into thin film or splittings with specific thicknesses ranging from 0.0031 to 0.10 mm (Davis, 1985). Quality sheet mica is graded into 10 quality classifications (Tables 2 and 3). Books of mica that are flawed with excess inclusions, cracks, or folds (A mica) are called scrap mica and are either ground into commercial products by a dry or wet process. Built-up mica was developed in 1894 as a result of the cost and scarcity of sheet mica, and because many satisfactory electrical parts could be made from it (Preston, 1971). This type mica is formed by layering pieces of mica splittings upon one another and binding them together with inorganic or organic binders. These sheets are then pressed together under high temperature. Mica for this process is produced from pieces of sheet mica too small to be punched into electrical parts (Davis, 1985). Reconstituted mica is mica paper produced by forming a mat of very thin delaminated flakes of scrap mica. This mat is usually impregnated with an organic binder, but is also available unimpregnated. It is dried at 110°C. The mica for this process is either produced from the trimmings of a sheet mica operation or from blocks of A type mica (Davis, 1985, Chapman, 1983). Ground mica constitutes by far the largest use of mica, both quantitatively and application wise. It is produced by grinding and sizing scrap mica (also mica concentrate) obtained from five sources, 1) trimming from sheet mica, 2) A type mica blocks, 3) as a byproduct of spodumene and feldspar mining, 4) weathered pegmatites and alaskites, and 5) metamorphic schists. Synthetic mica is produced by crystal growth in a slowly cooled melt of accurately proportioned chemical oxides. Extended cooling times at a specific viscosity result in larger crystals. Many different micas have been formed by this process; however, fluorophlogopite is the most common.

Jan 1, 1994

By J. Kretschmann

"By the end of the 1950s, the German hard coal mining industry produced 150 million tons of hard coal per year in 170 collieries with 600,000 employees. At that time, 70% of the primary energy demand of the Federal Republic of Germany was covered by domestic coal. However, due to coal mining becoming an increasingly globalized business and the oil and gas industry producing with lower costs, the German domestic hard coal industry stood constantly under restructur-ing pressure. The industry declined until the end of its life cycle. In 2007, a political understanding was arranged to phase out German hard coal mining in a socially acceptable manner by the end of 2018. This decision required a new strategy for the coal mining industry. Being strictly finalized, the German hard coal mining industry has to be prepared for the post-mining era. To create a sustainable development strategy, the long-term impacts of coal mining activities in Germany concerning the environmental, economic and social dimensions will be analyzed systematically and forward-looking. The regional and social responsibility during the closing process and for the post-mining era will be emphasized. High technical standards in environmental protec-tion and post-mining technologies, as well as long term experiences in the development of former mine sites to create new jobs are significant from an international point of view. The traditionally constructive social partnership between employers, union, and employees has enabled long-term stable adaption processes and avoided social friction. The sustainability strategy of the German hard coal mining industry can be regarded as a role model for other mining countries and regions facing similar transition challenges. INTRODUCTION Principally, mining is a finite business that reaches its end if the deposits are depleted or the raw materials can no longer be mined in an economically profitable way. However, the impact of mining is po-tentially an infinite one – at least if you measure it at a human time scale. Mining always means interfering with geological and ecological structures that cannot be reversed to their original condition. In general, the mining cycle (Figure 1) can be divided into three phases: 1. The exploration phase, in which the deposit is investigated to determine its technical and economic profitability. The period of these undertakings is relatively short and can lead to the launch of mining operations. 2. What follows is the actual mining phase which usually lasts for a long time and ends latest when all deposits are fully depleted. This lifespan may be shortened if the economic conditions (production cost or market price) deteriorate. Nevertheless, mining may be resumed if those conditions become favorable once more (examples are silver mining in Germany or rare earths mining in the USA). 3. The longest phase, however, is the post-mining phase as the human interference into geology and nature is usually inten-sive and irreversible. Mining can lead to consequences which have a permanently adverse impact on people and the environment; therefore, they have to be managed as best we can (1)."

Jan 1, 2017

By Adam Bedell, Jack Raymer, Brad Crenshaw

Tunnel contracts often include provisions for pre-excavation probing and grouting for areas ahead of the tunnel heading. If grouting triggers are met, tunneling stops, and grouting is performed. There is substantial variation within the underground industry on what criteria are applied to the grout verification hole that is drilled post-grouting and before excavation resumes. The criteria for determination of the effectiveness should be dependent on the geology and local hydrogeologic conditions. The purpose of this paper is to present specific criteria that can be used by a practitioner to determine whether tunneling can resume or if additional grouting is required.

Dec 1, 2022

By Z. Jin, D. DePaoli, P. Zhang

"Phosphate beneficiation in Florida generates more than one tonne of phosphatic clay, or slime, per tonne of phosphate rock produced. Since the start of the practice of large-scale washing and desliming for phosphate beneficiation, more than 2 Gt of slime has accumulated, containing approximately 600 Mt of phosphate rock, 600 kt of rare earth elements (REEs) and 80 million kilograms of uranium. The recovery of these valuable elements from the phosphatic clay is one of the most challenging endeavors in mineral processing, because the clay is extremely dilute, with an average solids concentration of 3 percent, and fine in size, with more than 50 percent having particle size smaller than 2 µm, and it contains nearly 50 percent clay minerals as well as large amounts of magnesium, iron and aluminum. With industry support and under funding from the Critical Materials Institute, the Florida Industrial and Phosphate Research Institute in conjunction with the Oak Ridge National Laboratory undertook the task to recover phosphorus, rare earths and uranium from Florida phosphatic clay. This paper presents the results from the preliminary testing of two approaches. The first approach involves three-stage cycloning using cyclones with diameters of 12.4 cm (5 in.), 5.08 cm (2 in.) and 2.54 cm (1 in.), respectively, to remove clay minerals followed by flotation and leaching. The second approach is a two-step leaching process. In the first step, selective leaching was conducted to remove magnesium, thus allowing the production of phosphoric acid suitable for the manufacture of diammonium phosphate (DAP) in the second leaching step. The results showed that multistage cycloning with small cyclones is necessary to remove clay minerals. Selective leaching at about pH 3.2 using sulfuric acid was found to be effective for removing more than 80 percent of magnesium from the feed with minimal loss of phosphorus.IntroductionFlorida phosphate ore, or “matrix,” as it is called locally, contains three different mineral groups that have to be separated from each other: (1) phosphate minerals, (2) clay minerals and (3) quartz, or sand. As mined, the phosphate and sand particles are embedded in compacted mud, or clay-balls. Before separation can begin, all of the particles must be liberated from the matrix of mud. The very first unit operation in the beneficiation process is to disaggregate the various particles. This actually starts while the matrix is flowing through the multimile pipeline from the mine to the beneficiation plant. While in the pipeline, the matrix is exposed to shear forces as it passes through the various centrifugal pumps along the pipeline. These intense shear forces cause a significant percentage of the sand and phosphate particles to be liberated from the clay-balls by the time they arrive at the plant. Once they reach the plant, the first goal is to finish disaggregating the clay, and follow that by making a size separation at 1 mm. This processing is conducted in the washer, consisting of a large rotating trammel screen and a few stages of log washer, screens and hydrocyclones. In all of the currently operating beneficiation plants, the washer is a large structure that receives the matrix, screens it and then discharges a pebble phosphate product sized larger than 1.0 mm and a slurry of liberated clay, sand and phosphate particles that are smaller than 1.0 mm."

Jan 1, 2017

By E. D. Attanasi, J. H. DeYoung

Although fraught with problems of completeness and comparability, statistical measures of mineral exploration in the United States point downward for 1985 and 1986. Exploration expenditures in the US domestic and Canadian companies have dropped steadily from a 1981 peak of about $400 million to about $190 million in 1985, according to a recent survey of exploration statistics by the Society of Economic Geologists (SEG). These totals have been adjusted to account for differences in the estimated coverage of exploration activity by each year's SEG survey. This survey is now supported by the US Bureau of Mines and the US Geological Survey (USGS). The drop in current dollar amounts does not take into account the effects of inflation, which would make the decline even more substantial. Metals Economics Group of Boulder, CO reported in its Mine Development Bimonthly that announced exploration budgets for 1986 indicated an even larger drop for the past year. Worldwide expenditures for companies covered by the report dropped from about $800 million to $750 million from 1984 to 1985 and plummeted to about $600 million in 1986. Exploration activity has been declining since about 1981. This has been due in large part to low prices for base and ferrous metals. Exploration budgets of mining subsidiaries of oil companies have plunged as parent companies try to conserve cash in the face of the sharpest decline in oil prices in nearly 40 years. Mining subsidiaries of petroleum firms that were either liquidated or divested recently include Anaconda (Arco), Getty Mining (Texaco), and Cyprus Minerals (Amoco). Exploration expenditures in Canada increased in 1984 in regions where gold is a traditional target. But there was little change in 1985, based on preliminary statistics from a federal government report (Energy, Mines and Resources Mineral Bulletin MR 211, 1986). Claim staking in Canada dropped 23% from 1983 to 1984 and declined slightly in 1985. Diamond drilling increased in 1984 to the record levels of 1980 and 1981. The ratio of exploration to development expenditures in Canada, however, fell from a 1981 peak of 0.9 to about 0.5 in 1984. The report also indicated that, since 1981, there has been a massive write-off of reserves with high production costs. Reserve levels of all major metals were down since 1981. Precious metals exploration accounts for an increasing share of total mineral exploration. For example, the SEG data show that 90% of 1985 US exploration expenses by domestic mining companies were devoted to base and precious metals, compared with only 51% in 1980. The restructuring of the mining industry has been accompanied by a decrease in response to the last two SEG annual surveys, but the trend towards precious metals was already established in earlier years. Trade journal reports suggest that the reduction of long-term interest rates has encouraged the mining industry to make cost-reducing capital investments in existing mines to maintain competitiveness. This is consistent with the observations that metals explorations in 1986 was characterized not by announcements of "grassroots" discoveries, but by on-property exploration on identified mines or prospects. In an effort to cut costs, gold mining companies have been following up on low cost production opportunities in their prospect inventories. Short-term, low risk, heap leach operations that can produce rapid returns on investment have been pursued. Specific exploration projects are covered in the individual state sections of this Annual Review. Even though economic growth continued steadily through 1986, the domestic mining industry has

Jan 5, 1987