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By Charles A. Hickey

The dining industry game tome Spruce Pine area a few years after tine Civil War. Two Yankees came down from Massachusetts to mine sheet mica to sell to the stove manufacturers for windows in heating stoves. At this time the method of mining was very crude; it was done only with pick and shovel. They were mining mica from the soft veins. Later they progressed to hand grilling and blasting. Hand drilling was quite an art in the area. One man would hold and turn the steel while one or two other men would drive the steel with hammers. In shaft raining, the muck and water was removed by hand winches called windlasses. About 1920 air compressors and jack hammers came into use. These were perhaps tide greatest improvement that has ever come to the area's mining industry. Later carne gasoline hoists, air drive water pumps, and all electrical equipment. Mica mining has, for the past few years, been very modern and efficient.

Jan 1, 1962

Mining as an industry of Utah had its inception in the activities of United States soldiers who came to the Salt Lake valley under the command of Gen. P. E. Connor, founder of Fort Douglas, in October, 1862. Many of these soldiers were from California and naturally employed their spare time in the search for minerals. Although their military status did not permit them to make locations in their own names, they assiduously prospected the region in accordance with their own knowledge and with in- formation conveyed to them by Indians and others. Their efforts were encouraged by their commander, who thereby fairly earned the title of father of the industry here, and by their other officers, and many discoveries that subsequently proved of great value were made by the soldiers. No systematic prospecting or mining had been done in the Territory previously although early Mormon settlers in the southern portion had mined a little ore from time to time in order to provide supplies of lead for bullets. The Mormon leaders at that time did not encourage mining. They held that agriculture was more important and profitable for their followers.

Jan 1, 1925

"Mining as an industry of Utah had its inception in the activities of United States soldiers who came to the Salt Lake valley under the command of Gen. P. E. Connor, founder of Fort Douglas, in October, 1862. Many of these soldiers were from California and naturally employed their spare time in the search for minerals. Although their military status did not permit them to make locations in their own names, they assiduously prospected the region in accordance with their own knowledge and with information conveyed to them by Indians and others. Their efforts were encouraged by their commander, who thereby fairly earned the title of father of the industry here, and by their other officers, and many discoveries that subsequently proved of great value were made by the soldiers.No systematic prospecting or mining had been done in the Territory previously, although early Mormon settlers in the southern portion had mined a little ore from time to time in order to provide supplies of lead for bullets. The Mormon leaders at that time did not encourage mining. They held that agriculture was more important and profitable for their followers.Coal was discovered and produced in 1850. Iron was discovered in 1850 and the first iron plant was in operation in 1852 in Iron County. The first non-ferrous metal production was in 1854, in Beaver County, when Isaac Grundy treated ore from the Rollins mine in what is said to have been the first lead furnace west of the Rocky Mountains. The first mineral location was the West Jordan claim in Bingham canyon, located September 17, 1863, now owned by the United States Smelting, Refining & Mining Co., and still productive. The first district organized in the state was the West Mountain (Bingham), December I 7, 1863. Other important districts of early organization are: Little Cottonwood, December 20, 1869; Big Cottonwood, July 11, 1870; American Fork, July 21, 1870; Uintah (Park City), July 8, 1871; Tintic, December 13, 1896; Ophir, August 6, 1870. The first silver-lead smelting was by J. W. Gibson at Stockton in 1866. Lieut. James Finnerty had previously erected two small trial furnaces there, but made no quantity production."

Jan 1, 1925

By A. W. Davis

Sapping and mining have constituted an important part of siege operations ever since powder came into general use in Europe. Before this period, famine was the main weapon in the hands of the besiegers, and the history of the middle ages is replete with accounts of sieges lasting two and three years. With the advent of explosives, a position impregnable to assault might be readily won by mining under, and blowing up, its defences. The natural offensive against this method of attack is to countermine and stop the attackers underground before their objective is reached. Thus developed the art of military mining. The French and British, in the Peninsular war, were adepts at this method of warfare, and the explosion of a mine and the formation of a breach were the usual preludes to the general assault of a position. In the Crimea, at Sebastopol, the British and Russians did a lot of underground fighting, as the old maps of their galleries, now in the museum at Chatham, will testify. In the siege of Port Arthur, in still later times, the Japanese and Russians were hard at it as well.

Jan 1, 1926

By Theodore Marvin

NOW that real progress is being made in building airplanes that can stand up under adverse conditions in isolated parts of the world, utilization of aviation by mining and petroleum companies is proceeding rapidly. This isolation, offering such handicaps to ordinary methods of transportation, also was the thorn in the flesh of aviation until the recent advances in plane and englue design. The accompanying illustration shows one of the six new planes just delivered to the U. S. Government for map making. The planes will be used in Department of Commerce, Coast and Geodetic Survey, Navy Hydrographic, and Insular work. There is a trap door in the bottom of the hull for a Fairchild camera which takes five pictures-vertical, N60°, E60°, S60°, and W60°-at regular intervals. It is manufactured by the Grumman Aircraft Engineering Corp., Farmingdale, N. Y.

Jan 1, 1935

By Shepherd J

Megascopic and microscopic studies of cleats and mining induced cleavage in Ihe first workings at Leichhardt Colliery reveal the presence of four distinct fracture sets. Microscopic studies confirm underground observations of the fracture sets.The most likely order of formation of the fractures is (i) "butt" cleats (ii) facc cleats (iii) shallow dipping faults (iv) mining induced cleavage. Three fracture sets apparently formed by tensiIe failure. Microscopy shows that the mining induced cleavage surfaces have preferred starting or lerminating points at the extremity of a "butt" cleat and a vitrite-dull coal band boundary. It is postulated that the induced cleavage begins at 'butt' cleats which behave as Griffith flaws under high compression around Leichhardt Colliery faces. Instantaneous outbursts of coal and gas are associated with only those workings which are affected by mining induced cleavage and occur at or adjacent to working faces.

Jan 1, 1981

By A. K. Singh, R. Singh, P. K. Mandal

On the basis of in situ study of pillar loading at different sites, an attempt is made in this paper to visualize the development of mining induced stress under varying geo-mining conditions. Field study demonstrated interesting interaction between size of pillar and nature of roof rock mass under the influence of increasing dimension of the excavation. Stiffness of pillars/overburden, extraction ratio and depth cover are observed to be the important parameters for the estimation of mining induced stress over the pillar. These parameters influence, both, the value of ultimate induced stress (vertical) and its range of influence ahead of the face line. Further, it is observed that the change in width/height (w/h) ratio of a pillar has got considerable influence over the nature of mining induced stress over it. Impact of highly dynamic nature of mining induced stress over the natural supports is observed to be the most serious factor for the safety of working under a hard and massive roof rock mass. On the basis of these observations, a conceptual model of interaction between the natural support and overlying strata is discussed in the paper. ZUSAMMENFASSUNG: Aufgrund ist in situ Studium von Säule Beladung an verschiedenen Stellen, ein Versuch in diesem Papier gemacht, die Entwicklung des Bergbaus vostellen sich, Spannung unter Änderung von Geo Bergbau von Bedingungen hat veranlaßt. Feld Studium hat interessante Wechselwirkung zwischen Größe von Säule und Natur von Dach Felsen Masse unter dem Einfluß von Vermehrung Dimension des excavation vorgeführt. Steifheit des Säulen Overburden, Herausziehung Verhältnisses und Tiefe sind beobachtet bedeckt, die wichtigen Parameter für die Schätzung des Bergbaus zu sein, Spannung über der Säule hat veranlaßt. Diese Parameter beeinflussen, beide, der Wert allerletzter veranlaßter Spannung (senkrecht) und sein Bereich des Einflusses voraus von der Gesicht Linie. Weiter ist, es beobachtet, daß die Änderung in Breite Höhe (W H) Verhältnis einer Säule beträchtlichen Einfluß über der Natur des Bergbaus erhalten hat, Spannung hat darüber veranlaßt. Schlag sehr dynamischer Natur des Bergbaus ist Spannung über den natürlichen Stützen beobachtet hat veranlaßt, der ernsteste Faktor für die Sicherheit des Arbeitens unter einer harten und massiven Dach Felsen Masse zu sein. Aufgrund dieser Beobachtungen, ein begriffliches Modell der Wechselwirkung zwischen der natürlichen Stütze und der überlagernde strata ist im Papier diskutiert. RESUME: En se basant sur dans l'étude de situ de chargement de pilier aux sites différents, une tentative est faite dans ce papier pour envisager le développement de creuse la tension persuadée sous varier de conditions de geo creuse. L'étude de champs a démontré l'interaction intéressante entre la taille de pilier et la nature de masse de rocher de toit sous l'influence d'augmenter de dimension de l'excavation. La raideur de piliers overburden, la proportion d'extraction et la couverture de profondeur est observée pour être les paramètres importants pour le jugement de creuse la tension persuadée par-dessus le pilier. Ces paramètres influencent, les deux, la valeur de tension persuadée ultime (vertical) et sa gamme d'influence en avant de la ligne de face. Plus, il est observé que le changement dans la largeur hauteur (le w h) la proportion d'un pilier a reçu l'influence considérable par-dessus la nature de creuse la tension persuadée par-dessus il. L'impact de nature extrêmement dynamique de creuse la tension persuadée par-dessus les soutiens naturels est observé pour être le facteur le plus sérieux pour la sûreté de fonctionnement sous une masse de rocher de toit dure et massive. En se basant sur ces observations, un modèle conceptuel d'interaction entre le soutien naturel et les couches recouvrant est discuté dans le papier.

Jan 1, 2003

By Dennis C. Martin

Assessment of the potential for mining induced subsidence and determination of ultimate design requirements for a mining operation should be based on a number of assessment approaches. Although the rock mechanics engineer has a variety of limit equilibrium and numerical modeling tools available for assessment and prediction of subsidence effects, empirical approaches based on precedent experience provide a powerful tool for calibration/verification of analytical models and prediction of subsidence. Three separate analyses approaches have been applied to the assessment of potential subsidence for a proposed block caving mine in eastern Canada. The investigations have included an assessment of documented historical information from previous block cave mining at the site, deterministic analyses using limit equilibrium approaches to assess kinematically possible failure mechanisms, and three-dimensional numerical modeling techniques. Analyses results have been used and compared with precedent experience and documentation of subsidence behavior from previous mining to optimize the subsidence predictions for the proposed mine.

Jan 1, 1998

By Edward C. Spalding

The mineral estate of Arizona's State Trust lands, which are administered by the State Land Department for the benefit of the common schools and 14 other beneficiaries, totals more than 10.5 million acres, or almost 15 percent of the State's entire area. Trust lands exist in all 15 of the State's counties, with the most and least acreage found in Yavapai and Gila Counties, respectively. Revenues derived from the Trust mineral estate include royalties, rentals, and fees. In Fiscal Year 1983-84, these revenues amounted to $4.2 million, or 13.5 percent of all income received by the Trust during this period. Industrial minerals, led by sand and gravel, contributed $1.1 million from 82 active properties.

Jan 1, 1987

By Donald V. Currie

"The Alberta and Northwest Chamber of Mines was founded in Edmonton, Alberta in 1935. The organization represented private sector mining explorers and developers in the province and north west Canada. The Chamber aided and abetted the establishment of the two territorial mining associations. Because of corporate human resource department creation by north of sixty mine operators, the Chamber refocused on Alberta and broadened its perspective to include activities beyond mining. In 1977 the name changed to the Alberta Chamber of resources. The slogan (in more modern terms vision, mandate, goal, etc) remains as Orderly Development of Canada's Resources.The sixty-three year reputation of the Chamber, built on volunteer rather than staff contribution, is the principal reason for any success. The key has truly been the reputation, not an image, as all activities have been solution oriented.This presentation provides insight into the structure and methodology applied by the organization, and reviews some of the successes and failures during the period 1985 to present. Examples discussed include:• Canada-Alberta Partnership on Minerals 1992-1995• Regional Upgrader Business Plan• National Oil Sands Task Force• Lakeland and Waterways Railway"

Jan 1, 1998

By Robert Martin, Brian W. Stump, David P. Anderson, W Scott Philips

Since 1994, various mines in the US have cooperated with research scientists at the Los Alamos and Lawrence Livermore National Laboratories to address issues related to verification of the Comprehensive Test Ban Treaty (CTBT). The .CTBT requires that no country may conduct any nuclear explosion in the future. While the CTBT is a significant step toward reducing the global nuclear danger, verifying compliance with the treaty requires that the monitoring system be able to detect, locate and identify much larger numbers of smaller amplitude seismic events than had been required previously. Large mining blasts conducted world-wide will be of sufficient amplitude to trigger the monitoring system at the lower threshold. It is therefore imperative that research into the range various blasting practices employed, the relationship of yield to seismic magnitude, and identification of anomalous blasting results be performed. This paper will describe a suite of experiments funded by the Department of Energy and conducted by the Los Alamos and Lawrence Livermore National Laboratories in cooperation with the US mining industry. Observations of cast blasting, underground long wall generated coal bumps, stoping, and explosively induced collapse of room and pillar panels will be presented. Results of these dual use experiments which are of interest to the mining community will be discussed. These include 1) variation of amplitude of seismic energy at various azimuths from cast blasts, 2) identification of the extent of back failure following explosive removal of pillars, and 3) the use of single fired shots for calibration of the monitoring system. The wealth of information and discovery described in this paper is a direct result of mutual cooperation between the US Government and the US Mining Industry.

Jan 1, 1997

By D. G. Brophey, J. A. O’Neill

"High costs, both in terms of human resources and financial costs, have long been the end result of accidents involving vehicles which continue to occur too often throughout our industry.For example, radio remote control LHDs too often seriously injure their operators in underground operations. Costly efforts are required by mine owners to provide safety bays and platforms from which their operators can work safely. In open pit operations, large heavy haulers have too frequently backed over vehicles or turned into vehicles unfortunate enough to be situated in their large blind spots. These are just two examples of situations that have occurred again and again under similar circumstances.Meanwhile, electronic methods of detecting proximity to vehicles have continued to develop. The time has come for the industry to think “outside the box” to evaluate whether many of these new methods can solve these recurring problems.This note takes a look at various types of proximity detection technologies that are in use today in other industries, and discusses the various potential applications within our industry."

Jan 1, 1998

For all the attention given to mining activities in Central and South America, Mexico, Indonesia and Papua New Guinea, it is sometimes easy to forget the activities taking place in one of North America's most important and largely untapped regions -Alaska. The Alaskan minerals industry employed about 3,406 people during 1995. That is a 23% increase from - - 1994. It also contributed about $719.8 million to the state's economy during 1995, a 10% increase. During the past few years, Alaska has seen significant increases in exploration and mining activity. Fairbanks Mining, an arm of Cyprus Amax, began producing gold during 1996 at its Fort Knox Mine, as did Nevada Goldfields' Nixon Fork gold mine. Kennecott's Greens Creek lead-silver-gold mine also reopened and USMX began operations at its Illinois Creek gold mine. In addition, several impressive exploration projects were under way in Alaska. Placer Dome reported good results at Donlin Creek project in southwest Alaska. Likewise, Newmont Exploration is getting serious about its True North gold project. And Nerox is nearing production at its Jonesville coal project in Alaska's interior. In November, about 400 miners gathered in Anchor- age for the Alaska Miners Convention. Throughout the conference and exhibition, attendees listened to updates on these precious- and base-metal and coal exploration and mining operations. They also learned that the state wants more miners to head north and help develop its natural resources. Alaska is ripe for a smelter The mining industry -Alaska's miners in particular - has a powerful ally in Sen. Frank Murkowski (R-AK). He is the chairman of the Senate Energy and Natural Resources Committee. During his luncheon address, Murkowski said it appears that it is economically feasible to extend the Alaska Railroad to northwest Alaska, taking advantage of the large coal and hard-rock mineral tracts in the Ambler mining district. He also renewed his push for building a major smelter in Alaska to process ore that would come from the Ambler mining district. Murkowski believes that Alaska's economy can be expanded by extending the railroad from Nenana to the Point Lay coal fields to open coal development. Along the way, the railroad would pass through the Ambler district, helping to develop the hard-rock deposits. An outgrowth of this additional mineral development, Murkowski said, could be a new smelter in Alaska. It could use power from the Tyee hydroelectric facility near Wrangell or from the Makushin geothermal project near Unalaska. Either site, he added, offers access to plentiful, relatively low-cost power, at tidewater to facilitate ore deliveries to the Pacific Rim. The Congressional Research Service has determined that there are enough mineral deposits and coal beds to make it possible to finance the extended railroad, he said. The 1,200-km (744- mile) rail extension would cost about $4.2 billion. The North Slope of Alaska contains up to 3.6 Tt (4 trillion st) of coal, Murkowski said, that contains less than 0.25% of sulfur and less than 4% moisture. It aver- ages 12,300 Btu in heat content. "That is a tremendous resource," he said. The Ambler mining district, meanwhile, has at least eight identifiable hard-rock deposits, Murkowski continued. These contain zinc, lead, copper, nickel, chromium, tin, barite, gold and silver. "All eight of these can generate ore concentrates at rates similar to Red Dog's cur- rent 725 ktla (800,000 stpy)" of zinc, he said.

Jan 1, 1997

By D. A. Robbins

Remote sensing for environmental measurements is already being used. Aircraft-mounted imaging spectroscopy has been used to evaluate historical mining operations, as well as active mine sites. To the extent that remote sensing can provide more sensitive, cost effective and timely monitoring potential, the technology is of interest to the industry. Questions, however, remain about the application and validation of the data and concerning the availability of the technology in the private sector. This paper discusses some of the potential uses, benefits and concerns related to remote sensing. And it discusses efforts to monitor the technology's development.

Jan 1, 2000

By D. A. Robbins

The application of remote sensing for environmental measurements is already being utilized. Aircraft mounted imaging spectroscopy has been utilized to evaluate areas of historical mining operations as well as active mine sites. To the extent that remote sensing can provide more sensitive, cost effective, and timely monitoring potential, the technology is of interest to the industry. Questions remain about the application and validation of the data and the availability of the technology in the private sector. This presentation will discuss some of the potential uses, benefits, and concerns related to remote sensing and efforts to monitor the technology's development.

Jan 1, 1999

By D. A. Robbins

The application of remote sensing for environmental measurements is already being utilized. Aircraft mounted imaging spectroscopy has been utilized to evaluate areas of historical mining operations as well as active mine sites. To the extent that remote sensing can provide more sensitive, cost effective, and timely monitoring potential, the technology is of interest to the industry. Questions remain about the application and validation of the data and the availability of the technology in the private sector. This presentation will discuss some of the potential uses, benefits, and concerns related to remote sensing and efforts to monitor the technology's development.

Jan 1, 1999

By S. H. Ash

THE increasing need for the products of our mines, mills, and processing plants, the loss of mine manpower to plants other than those concerned with the mineral industry, and the drafting of our younger men into military service have created an acute situation in many places as to workers and production. This, in turn, has focused attention on the need for conserving manpower by conserving the health and life of our mining people. Health A world-wide tendency is noticeable in the mineral industry toward protecting the health of workmen,-particularly younger workers, as well as older workers who can continue to produce in many places where manpower is lacking. This matter was emphasized at the Geneva Labor Conference for Coal Mines at the Committee's fourth session, held in Geneva, Switzerland, May 7 through 19, 1951. Papers concerning the health of workers were presented at the annual meetings of the mining sections of the National Safety Council, the Coal Mine Inspectors' Institute of America, the American Public Health Association, and other organizations. Safety Conferences Without exception, the attendance at mining-safety conferences in widely separated places throughout the country during the year was the largest to date. What is needed at the safety meetings throughout the country is more-widespread attendance by those who can sell the idea to the workers that they are the focal point in accident prevention and that safety is not going to be achieved alone or even in part by laws, decrees, or commands, but by quiet influence, unconscious suggestion, and personal' guidance. If these are acquired by the workmen, a safe environment and ample, capable supervision supplied by management, accidents will be fewer and less severe. Many safety conferences attempt to develop the foregoing idea by enumerating and describing training programs for supervisors and workers alike. Nothing can replace a course in first aid for all persons employed at any mine or plant as an introductory and basic step to a successful safety program. Even in this, the shoe must fit the foot, rather than applying the order do this or else. In first-aid

Jan 1, 1952

By N. Kornelius

In recent years there has been an increased focus on corporate governance matters worldwide. The duties and responsibilities of directors of companies have come under close scrutiny, with shareholders increasing their demands for greater responsibility and accountability. Media attention and pressure groups have also had their effect. Governmental actions have supported these demands and directors have witnessed sweeping legislative changes imposing more onerous duties and liabilities than formerly imposed upon them at common law and in terms of the Companies Act. At the same time, the power of regulatory bodies has been increased to enforce this legislation and make someone pay to remedy an alleged infringement. Breach of such duties may incur personal or criminal liability, or both. Environmental protection legislation has become a particularly prevalent feature in this regard, and the number and complexity of statutes concerning the environment have increased over the past few years. Directors of South African companies will be familiar with relevant acts such as the National Environmental Management Act 107 of 1998; Conservation of Agricultural Resources Act 43 of 1983;Hazardous Substances Act 15 of 1973, as well as the National Water Act 36 of 1998. Now the directors of mining companies are faced with the Mineral and Petroleum Resources Development Act 28 of 2002.

Jan 1, 2003

By Donald E. Ralston, V. Rajaram, Michael N. Greeley, John W. Peters, Terry J. Laverty, F. S. Kendorski, Peter G. Chamberlain, J. Brent Hiskey, William C. Larson

Preliminary figures from the US Mine Safety and Health Administration show 801 underground metal mines and 490 surface metal mines, at the end of 1981, up from 663 and 383, respectively, in 1980. Preliminary MASH figures also show 207 underground nonmetal mines and 1070 surface nonmetal mines at the end of 1981, compared with 167 and 1092, respectively, last year. In addition, preliminary MASH figures show there were 14,676 mineral extraction operations on the surface and 3845 underground at the end of 1981, versus 14,951 and 3675, respectively, for last year. The number of mines, then, in three of four categories increased significantly, while having a lower net total of just 2% in the other category. And the number of underground extraction operations increased nearly 5% for the year, while surface operations were down less than 2%. But despite operations totals that mostly held their own or showed significant increases, it was a tough year for the nation's mining industry. The nonferrous segment of the industry had a bad year and 1982 may be no better, according to Business Week (Jan. 11, 1982), which adds that a turnaround is impossible unless the general economy recovers. Even then, with diminishing markets and overcapacity plaguing its products, the mining industry's condition "will be far from robust," the magazine says. The basic problem is that nonferrous metals-aluminum, copper, lead, molybdenum, nickel, and zinc-are tied to the most troubled sectors of the US economy. As recently as 1979, for example, more than 40% of all aluminum shipments went to the construction and transportation industries. Last year, these markets were down to 35% of aluminum shipments. And molybdenum sales to steel producers dropped by nearly 15% last year. Moreover, nonferrous products ended 1981 at disastrously low prices. Molybdenum oxide sold at $8.77/kg ($3.98/lb), half its $17.63/kg ($8/lb) price earlier in 1981 and aluminum was listed at $1.08/kg ($0.49/lb), compared with $1.54/kg ($0.70/lb) a year earlier. The Comex price of copper was $1.54/ kg ($0.70/lb), down from $3.11/kg ($1.41/lb) in early 1980, in real terms the worst copper price in 30 years. Lower prices led operators to cut their output and increase layoffs, shut down mines, and defer capital spending projects. In December, Duval Corp., a Pennzoil Co. subsidiary, shut all four of its US copper mines until March. Aluminum Co. of America had laid off 7.3% of its work force, shut nine of its 38 smelting lines, and entered 1982 operating at only 68% of capacity. Inco Ltd., the Free World's largest nickel producer, lost money in 1981, an estimated $11 million, for the first time since 1932. And, like Falconbridge Nickel Mines and other major nickel producers, had cut back on nickel production and was operating at only 63% of capacity (Forbes, Feb. 15, 1982). Amax, the country's largest molybdenum producer, had cut production by 20%. And Hanna Mining Co. sold lead for $5.07/kg ($2.30/lb), about $1.54/kg ($0.70/lb) below what it cost to produce. Another problem is that copper companies in the next few years must come to terms with problems of aging smelters. Some companies are simply closing them. In 1980, Anaconda closed its 75-year-old Butte, MT, smelter and is shipping concentrates to Japan, rather than modifying the smelter to meet environmental requirements. And oth Phelps Dodge Corp. and Asarco Inc. have antiquated smelters on which they will have to make decisions. The most troubled metal in 1982, Business Week said, will be molybdenum, with no real recovery in sight until the mid-1980s. High molybdenum prices in the late 1970s, caused in part by shortages, triggered overexpansion that will take years for the US market to soak up. On a more upbeat note, 1981 mergers might help stabilize the industry by providing funds for mining companies. Standard Oil Co. (Ohio) said it plans to spend $7 billion on Kennecott during the next 10 years for modernization and expansion. And Atlantic Richfield Co. said it will spend $500 million on Anaconda Copper Co. during the next five years. Another positive note was sounded by T. H. Adams of the United Banks of Colorado Inc. He said he expects the mining industry to experience moderate growth in 1982, led by "interest rate sensitive" demand from energy, electronics, and defense markets. And mining will be helped by "weak, but improved" construction and auto markets. The mining industry will be operating in an economy stronger than 1981, but still relatively sluggish by postwar standards, Adams predicted. Iron Ore Estimated US iron ore production in 1981 was 75.2 Mt (74 million long tons), up 6% from 70.7 Mt (69.6 million long tons) in 1980, though down from the 87.1 Mt (85.7 million long tons) produced in 1979. The mine value of usable iron produced from domestic mines was estimated at $3 billion. US iron ore was produced by 28 companies operating 35 mines, 26 concentration plants, and 16 pelletizing plants. The mines included 34 open pits and one underground mine. Byproduct ore recovered from copper- and titanium-mining operations accounted for less than 1% of total iron ore production. Fifteen mines operated by nine companies accounted for 94% of total

Jan 5, 1982

By Clement K. Chase, J. A. Eisele, Paul D. Chamberlain, Terry Laverty, Lee Rice, Larry Sevenker, Albert G. Law, Daryl Tweeton, John Peters

"Name your poison," wrote Forbes, Jan. 3, 1983, in an article describing the plight of much of the mineral industry as it entered the new year. "To ask which (mining) segment is better these days is almost like asking which of several stones would make a better life preserver." "The scene has seldom seemed darker or apparently less promising," said the Mining Journal in June 1982. And the Northern Miner described the year as the third in a "3-year drought which has completely dried up (company) coffers." Thus, 1982 became the worst year for much of the mining industry since the Great Depression. Low prices, commodity surpluses, output reductions, layoffs, temporary and permanent closures, and financial losses made headlines as the general recession continued to hurl blows at an industry facing strong foreign competition, increased government regulations, and plummeting market demand. At fault were tight US monetary policies and the resulting high interest rates that, while forcing inflation to slow, also threw the economic wheels of the country into reverse gear. Automobile production, housing starts, consumer durable sales, and capital spending all fell dramatically. US industrial production fell about 8.5% in 1982, with the GNP dropping by 1.7%. Production Value Not a single mineral escaped this recession. According to the US Bureau of Mines, US nonfuel production value dropped for all but four out of 21 metals and 14 out of 44 nonmetals. Production quantities increased for only gold, lead, and zirconium among metals and for only six nonmetals. Total nonfuel mineral production value dropped a whopping 21% from 1981 levels, the largest decline since 1938 and the first since 1971. Production value was estimated at $20 billion. Metal commodities showed heavier losses than nonmetals-37% vs. 12%-because of their link to depressed automobile and construction industries. Prices From peaks in early 1980, prices of precious and base metals, ferrous and nonferrous metals, and virtually every mineral dropped to 30-month lows in June 1982. Gold dropped to $9.64/g ($300/oz) compared to a high of $27/g ($850/ oz). Silver was quoted below 164/g ($5/oz) versus a $1.61/g ($50/oz) high. Copper was offered at a five-year low of $1.22/kg (55.5¢/lb) compared with a high of $3.30/kg ($1.50/lb). Lead went for 53¢/kg (24¢/lb) versus $1.21 (554). Nickel begged for buyers at $4.19/kg ($1.90/lb) compared to a high price of $7.72/kg ($3.50/lb). Molybdenum was available at or below $8.82/kg ($4/lb), down from a high of $44/kg ($20/lb). Cobalt went for $11/kg ($5/lb) versus $55/kg ($25/lb). Adjusted for inflation, increased currency costs, and currency devaluation, many of these prices are the lowest reached in decades. Financial Profits & Losses Low prices severely impacted companies' earnings, turning profits into sometimes disastrous or fatal losses. Robert Norton, director of the US Bureau of Mines, noting there has been a recession in the mineral industry for years, said, "Profit rates as related to invested capital have been considerably lower (for mining) than those of other industries. Mineral industry profits have been subject to greater cyclical swings and debt equity ratios have been significantly greater than

Jan 5, 1983