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By Peter J. Szabo

Introduction There has been much said recently about the sophistication of Japanese management in turning out reliable, inexpensive products, such as cars and steel. Techniques include consensus management and quality control circles. These have been touted as prime reasons for inexpensive Japanese products. An often neglected, but major factor in the equation of cheap export goods is the role played by Japanese trading companies. These venerable institutions are a vital factor in Japan's overall strategy of keeping the price of raw materials at the absolute lowest levels. This is critical to the country's economy since the nation must import more than 85% of all its coal. A country that is so desperate for imported raw materials would appear, at first glance, to be at the mercy of its suppliers. In Japan's case, however, the opposite is true. With the exception of brief' windows in 1974-75 and 1980-81, Japan has been in the driver's seat in negotiating contract terms. Due to its dominant role in world coal trade, Japan's situation can be described as a de facto monopsony. By definition, a monopsony is a market situation where the product, in this case coal, is offered by many sellers, but is sought by one buyer. This has been due to the role of Japanese trading companies in dealing with suppliers. Table I depicts trading companies by size in 1982. Mitsubishi and Mitsui are overshadowing in terms of size. The others, though less significant, play a vital role in orchestrating the marketplace. Three critical building blocks on which the strategy of the trading companies are based include intelligence networks, exceptional training of company traders, and shrewd contract negotiation practices. Intelligence Networks All success is derived from these three key components. Of the three blocks, intelligence gathering is the most important. With all the sophistication of the Central Intelligence Agency, the Federal Bureau of Investigation, Interpol, and the Surete', the Japanese trading company's method is every bit as competent and far more gentlemanly. Friendly competition is the key to survival. Although one Japanese trading company appears to be in ardent competition with its rival Japanese trading companies, when studied closely, a totally different picture emerges. The end user nominates certain trading companies as market channels and informally guarantees they will receive compensation regardless of which company wins a specific order. With this concept in mind, the pressure is off. The trading company can aim at getting the best price for the end user. Therefore, bargain, beat, and share information. Do whatever is necessary, but get the lowest price for the end user. Even with the game so gentlemanly, no victory could be assured without an adequate intelligence network. Proper intelligence is only as good as the sources drawn from. But how is one assured of getting the right information? The answer is verification. Verification is comprised of numerous independent sources each cross checked at a central processing unit in Tokyo. Each major Japanese trading company receives input, not only from its own trader, but from other trading companies as well. In addition to their own compilation, trading companies rely on the The Coal Manual, published annually in Tokyo by TEX. This manual covers every major coal producing country. Mines are located and seams identified, mining recovery, equipment lists, washing yield, railway distances

Jan 1, 1985

By L. B. Gittinger

Mr, Chairman, members- and guests of the AIMS, I greatly appreciate this opportunity to speak before you. I hope this is just the beginning of a long and mutually beneficial relationship. This winter I decided to join the other 36 Freeporters who belong to the AIME; and, I applied for membership in the Society of Mining Engineers. To queries as to my interests in the Society, I had this answer: our principal challenge -- more so today, than at any time in my nearly 25 years in the industry -- is discovery and development of new sources of raw materials. I want to join you in meeting this challenge.

Jan 1, 1966

By W. R. Reed, G. J. Joy, B. Kendall, A. Bailey

"Testing of the roof bolter canopy air curtain (CAC) designed by the U.S. National Institute for Occupational Safety and Health (NIOSH) has gone through many iterations, demonstrating successful dust control performance under controlled laboratory conditions. J.H. Fletcher & Co., an original equipment manufacturer of mining equipment, further developed the concept by incorporating it into the design of its roof bolting machines. In the present work, laboratory testing was conducted, showing dust control efficiencies ranging from 17.2 to 24.5 percent. Subsequent computational fluid dynamics (CFD) analysis revealed limitations in the design, and a potential improvement was analyzed and recommended. As a result, a new CAC design is being developed, incorporating the results of the testing and CFD analysis.IntroductionExposure to respirable coal mine dust can cause coal workers’ pneumo-coniosis (CWP), also known as black lung. If silica is present in the dust, the miner may develop silicosis in addition to CWP. CWP and silicosis are occupational respiratory diseases that are ultimately fatal and have no cure. The only method of prevention is to eliminate exposure to respirable coal mine dust and crystalline silica, or quartz. The occupational exposure limit on a Mining Research Establishment (MRE) basis for respirable coal mine dust had been 2 mg/m3 during each shift that a miner is exposed in the active workings of the mine or in mine facilities. Under recently enacted legislation, this standard was changed in August 2016 to 1.5 mg/m3 for a full working shift (The Office of the Federal Register, 30 CFR 70.100, 2015). When respirable quartz is present, the mine must maintain its average concentration at or below 0.1 mg/m3. If the mine exceeds the 0.1 mg/m3 respirable quartz dust concentration, then the applicable respirable dust standard is reduced, calculated as 10 divided by the percentage of quartz present (The Office of the Federal Register, 30 CFR 70.101, 2015).The sources of exposure to respirable coal mine dust for roof bolting occupations include infrequent maintenance and cleaning of the vacuum dust collection system and operating the bolter downwind — in the return air — of the continuous miner (Good-man and Organiscak, 2003). Recent studies have demonstrated that vacu-um dust collection systems are effective in capturing bolter-generated dust if maintained and operated correctly and if proper face ventilation techniques are used. However, most expo-sure to respirable coal mine dust for a roof bolter occurs when the roof bolter machine is operated downwind of the continuous miner (Potts, Reed and Colinet, 2011; Colinet, Reed and Potts, 2013). Because of this higher exposure downwind of the continuous miner, the roof bolter is often limited to working downwind of the miner only once during a production shift."

Jan 1, 2017

By D. L. Schenk

The Navajo Mine is exclusively a multiple-seam surface coal mine located in the northwest comer of New Mexico. The property is situated entirely on the Navajo Indian Reservation. It is owned and operated by the Broken Hill Propriety Co. Ltd., of Melbourne, Australia. The mine began production in January 1963 with a long-term fuel supply agreement with the Four Corners power plant. The 2175 MW nominal generating capacity of the Four Corners powerplant consumes 7.2 Mt to 7.7 Mt/a (8 million to 8.5 million stpy) of coal. The Navajo Mine has estimated reserves totaling 1 Gt (1. I billion st) of strip minable coal. Only about one-third of that total is presently committed to the generating station. As development continued over the years, mining operations advanced into more complex geologic areas to satisfy the utility's demand for coal. To optimize the committed reserve and provide competitively priced coal to the customer, the Navajo Mine began developing a new pit in June 1986. The Dixon Pit boxcut development was completed in April 1987. About 6 hm3 (7.9 million cu yd) were stripped, uncovering 929 kt (1 million st) of coal. Strip ratio was 7.74:1 including 36.8% rehandle of prime yardage. This case study of the fourth production cut highlights a variety of dragline stripping techniques including highwall bench (overburden) side cast, intermediate highwall bench (parting-interburden) side cast and spoilside bench (partings-interburden) stripping methods. The Dixon Pit offers considerable challenges in the surface recovery of up to seven seams of coal within the 1432 m (4700 ft) of total pit length.

Jan 1, 1990

By H. Wesley Peirce

Arizona embraces portions of two major western-U.S. physiographic-geologic provinces and a smaller, local one. These exert fundamental control over the geologic framework and associated earth-material resources and potential. The Mogollon Rim diagonally crosses the State and separates the Colorado Plateau Province to the northeast from the Transition Zone and Basin and Range Province to the southwest. More than 90 percent of the population, production of nonfuel minerals, agricultural land, and water resources are in the Basin and Range part of the State. In 1981 Arizona was ranked number one in the Nation with respect to the value ($2.56 billion) of nonfuel-mineral production. About 8.2 percent of this amount ($212.9 million) can be attributed to nonmetallic (industrial) materials. Although a diversity of nonmetallic substances is produced and some are exported, the bulk is utilized within the State and is directly related to market growth. Since 1950 there has been a fourfold increase in Arizona's population, a concomitant twelvefold jump in sand-gravel production (tons), and a twentyfold increase in "stone" production. New industries developed during this time include cement, salt (and storage of liquid petroleum gas products in solution cavities in salt), zeolite, hydrofrac sand, vitrified clay pipe, crushed marble products (teed additive, pool sand, roofing granules, etc.), and "rock" wool. Most of these newer industries serve out-of-State as well as in-State markets. In 1981 at least 225 industrial mineral or rock deposits were being worked to produce about 10 tons of material per Arizona resident per year. In 1980 the relative values of basic industrial minerals produced in the State, by major group, were cement and lime (51.6 percent); gravel (26.5 percent); sand (11.8 percent); stone (4.6 percent); and others (5.5 percent). Detailed knowledge of the nonmetallic rock-and-mineral content of most Arizona ranges and basins is lacking. Exploration opportunities in this sun-belt growth region appear encouraging.

Jan 1, 1987

By Summers D. A.

A mining machine has been designed and fabricated to mine coal from room and pillar operations combining high pressure waterjet cutting and mechanical fragmentation. Waterjets are used to slot the coal face with an advancing plow wedge then breaking out larger coal pieces. The machine has the following advantages: - simply built around a disassembled longwall chock and gathering arm loader apron; - few moving parts which are simply and inexpensively maintained; provides immediate roof support in the face working area; - coal produced is larger, with resulting lower preparation cost; - no dust is generated; - risk of spark generation is virtually eliminated.

Jan 1, 1992

By Caroline Gerwig, Joseph R. Wickline, Zach Agioutantis

In longwall mining, the progressive caving of the roof allows stored energy to dissipate over an extended time. However, in some cases, the roof strata above the longwall panel are unusually strong and do not break with the movement of the working face. Instead, the roof material bridges over the expanse of the longwall, forming an unstable beam. Later, when this beam breaks, the stored energy can release suddenly, causing a seismic event to propagate to surrounding mine workings. The focus of this paper is to estimate the size of beams that form over longwall panels to the seismic energy recorded by the mine. Analytical calculations are used to verify two-dimensional models of longwall roof beams to determine the strain energy and gravitational energy developed, which is then released upon strata failure to surrounding mine workings. Models are developed using RS2 to model the stress, strain, and deflection along the bottom of the longwall roof beam to calculate gravitational and strain energies. Gravitational energy is shown to be the main driving factor in energy release, except for the beams with low heights. Analyses allow the determination of beam characteristics based on seismic data. The analysis is refined using swelling factor to compare various beam drop heights. The models show an increase in seismic magnitude for higher drop heights. However, the actual data provided by the Buchanan mine displays a decrease in seismic magnitude with increasing drop height, indicating that energy is dissipated into the broken gob material as drop height increases.

Jul 1, 2023

By E. McCullough, S. Gaillard

"Diesel particulate matter (DPM) has been regulated by the U.S. Mine Safety and Health Administration since 2002 in underground metal and nonmetal mines. To demonstrate regulatory compliance, DPM samples must be collected and later analyzed by the U.S. National Institute for Occupational Safety and Health (NIOSH) 5040 standard method, but the FLIR Airtec DPM monitor can serve as a complementary engineering tool. The monitor is a handheld instrument that offers near-real-time measurements of elemental carbon (EC), which is a primary constituent of DPM. As part of an ongoing field study, the monitor was used to survey EC in an underground stone mine. This effort was aimed at determining spatial and temporal DPM variations in several key locations. The results of prolonged area monitoring—that is, lasting several hours — revealed that DPM concentrations were diluted substantially as air moved away from the primary production zone, but that concentrations could vary quite a bit in a single location from day to day and between seasons. DPM concentrations were generally lower in winter than in summer, which is consistent with increased natural ventilation airflows during winter. Using a modified sampling cassette, an attempt was also made to sensitize the Airtec monitor to allow for “spot-checking” of EC concentrations — that is, measurements made in several minutes. Preliminary field data showed that the sensitive cassette performed well in terms of providing accurate data that could be useful for rapid assessment of DPM. IntroductionDiesel particulate matter (DPM) is the solid fraction of the exhaust emissions from a diesel engine. It largely consists of elemental carbon (EC) and organic carbon (OC) (Birch, 2003). The World Health Organization International Agency for Research on Cancer classified diesel exhaust, including DPM, as a carcinogen (World Health Organization, 2012). It is believed to cause and/or exacerbate respiratory illness upon inhalation, deposition and retention in lung tissue. Because DPM exists in both the micro- and nanoparticulate ranges, it can bypass typical autoimmune defense mechanisms that keep larger particles out of the respiratory system (Ristovski et al., 2012)."

Dec 1, 2016

By P. G. Dempsey, J. R. Heberger, J. P. Pollard

During a mine disaster or emergency, underground air can quickly become contaminated. In these circumstances, all underground mine workers are taught to don breathable air supply units at the first sign of an emergency. However, no contemporary oxygen consumption data is available for the purposes of designing breathing air supply equipment specifically for mine escape. Further, it would be useful to quantify the oxygen requirements of breathing air supply users for various escape scenarios. To address this need, 14 participants crawled a distance of 305 m each while their breath-by-breath oxygen consumption measurements were taken. Using these data, linear regression models were developed to determine peak and average oxygen consumption rates as well as total oxygen consumption. These models can be used by manufacturers of breathing air supply equipment to aid in the design of devices that would be capable of producing sufficient on-demand oxygen to allow miners to perform self-escape.

Jan 1, 2015

By Robert A. Blake

Introduction Sulfide copper, zinc and iron concentrates are recovered in the 5000 ton per day flotation plant operated by Cities Service Company at Copperhill, Tennessee. The heavy-sulphide ore is first ground to 50 pct. minus 200 mesh and a bulk concentrate floated. The bulk concentrate, over 60 pct. of the ore weight, is reground to 72 pct. minus 200 mesh and then treated in a selective flotation circuit to recover copper and zinc concentrates. The tailing of selective float is the iron sulphide material source for the manufacture of sulfuric acid and iron sinter. The valuable minerals in the ore are chalcopyrite, marmatitic sphalerite, pyrite, and pyrrhotite. A typical mineralogical analysis will be found in table 1. A typical material flowsheet will be found in figure 1. Shown in the flowsheet are a scavenger float on the bulk rougher tailing and a copper-talc separation unit. At times a lead-copper separation circuit has been run.

Jan 1, 1971

By M. K. Boateng, K. Awuah-Offei

"Language barrier in a workplace affects workers’ productivity and safety. The objectives of this paper are to: (1) review the various approaches for breaking language barriers among miners; and (2) analyze the costs and benefits of these approaches, and make recommendations on the way forward. The authors achieve these objectives by reviewing the current approaches in breaking language barriers among miners. The review reveals that some of these approaches can be expensive with less benefits. Thus, it is concluded that mining companies should carefully select the optimal approach to break language barrier. INTRODUCTION Multi-national mining companies have expanded their operations into non-traditional mining destinations to grow and meet market expectations. For instance, Newmont Mining Corporation has about 14 operations and projects located in Africa, Asia, Australia and America (Newmont Mining Corporation Operations and Projects, 2015). Similarly, Freeport-McMoRan operates about 14 mines in North America, South America, Southern Asia, and Africa (Freeport-McMoRan Inc., 2015). Some mining companies have also attracted expatriate workers into their workforce. For example, Ma’aden, the Saudi Arabian mining company, in its 2013 annual report states that 34% of its total employees are expatriates (Ma'aden, 2013). Expatriates constitute a key source of skilled labor and facilitate skill transfer. The success of many international operations relies greatly on expatriate performance (Erbacher, D'Netto & Espana, 2006). Even companies that do not expand their operations into other foreign countries still have to deal with language barriers due to changing language demography of the country and the areas from which labor is sourced. For example, the language composition of the workforce and languages used in South African mines is diverse with miners proficient in Afrikaans, English, Zulu, Xhosa and others to varying degrees (Research Focus (Pty) Ltd, 2011). As a result of these trends, most mines today operate with a multinational workforce. This means cultural differences, including language barriers, exist among the miners. Marschan-Piekkari, Welch and Welch (1999) emphasize the fact that language problems become prominent as companies internationalize and grow their operations into more countries. According to a survey by Forbes, language barrier affects operations. For example, business owners acknowledge that language proficiency may promote a safer work environment (Rubin, 2011). A research has shown that language and cultural barriers in a workplace contributes to reducing workers’ productivity, increasing accidents, and hurts employers’ ability to recruit, hire and retain workers (Morris, 2002). Hence, mines are making efforts to break language barriers in their operating environments. Ma’aden, for instance reported in 2013 that 1,506 of its employees received training in English as a second language (Ma'aden, 2013)."

Jan 1, 2016

By Tim McMahon

"A slurry is any combination of liquids and solids where solids make up more than 10 percent of the mixture. Mining operations create various types of slurries from processes such as dewatering, bitumen extraction in oil sands, concentrator plants, milling operations, tailings, lime addition and so on. The mines then transport these slurries through pipelines (Fig. 1).Slurry valves are used when the mine needs to transport ore a long distance and there are no other viable transportation methods, such as roads or railroads.Severe service valves must be used in slurry applications and they must be tested to ensure reliability. This article describes how Emerson designs and tests its Fisher valves for use in mining slurry applications.Slurry pipeline valvesWithin a slurry pipeline system, valves are required as part of the pumping stations, choking stations and isolation stations. There may be multiple pumping stations depending on the length of the pipeline or the terrain it crosses. Choking stations are used to reduce the velocity and the pressure in the pipeline, either before a pumping station or at the end of the pipeline, and to ensure the pipeline does not slack (remains full and pressurized). Isolation stations exist so that a pig (a device sent through a pipeline to clean or inspect the pipe) can be inserted or removed from the pipeline.Typical valves used in a slurry pipeline are severe service ball valves. The valves use floating balls that are held between the seats and are not pinned or permanently attached to the shaft that rotates the ball. The inside diameter of the ball typically matches the pipeline inside diameter, enabling the pipeline to be cleaned or inspected with a pig.They can be built to accommodate the high pressures required for the typical slurry pipeline. These pressures can require up to ASME Class 2500 valves and flanges. The valves can get qlarge, up to NPS 36 inches.Specialized segmented ball valves and slurry knife gate valves are also used in some slurry applications when pressures are lower, in the ASME Class 150-300 range."

Sep 1, 2019

By A. K. Smith

Overexposure to noise remains a widespread, serious health hazard in the U.S. mining industry. Most other categories of illnesses and injuries associated with mining have improved, with the exception of hearing loss. U.S. Mine Safety and Health Administration (MSHA) coal noise data from 2000-2004 show that the continuous mining machine (CMM) is first among all equipment, accounting for 35% of noise overexposures. Joy Mining Machinery, in collaboration with the National Institute for Occupational Safety and Health (NIOSH), is conducting research to reduce noise generated by continuous mining machines. This paper describes a "JOY Designed for Noise Reduction" (JOY DNR; patent pending) tail section as a noise control for reducing the noise overexposures of CMM operators. Underground testing shows a 45% to 65% noise exposure reduction for the operator when comparing the JOY DNR tail section results to those for a standard machine. Utilizing this newly developed noise control, along with previously proven controls, will provide CMM operators an opportunity to be within the MSHA permissible exposure limit (MSHA-PEL). Mining Engineering, 2011, Vol. 63, No. 7, pp. 83-85. Official publication of the Society for Mining, Metallurgy and Exploration, Inc.

Jan 1, 2011

By P. R. Pereira

This paper presents a comparison between the simulations of a semi-empirical model and a theoretical model for the prediction of radial stress in rock. The results of the simulations were compared to the results of a field test. The comparison of the radial stress predictions shows that in the semi-empirical model use of the plane wave approximation as the basis for the prediction of the radial stress provides a much better result than the theoretical model. The theoretical model includes the correct elastic wave geometry and theory but fails twice, firstly by considering the charge as a point (unit) energy source therefore; and secondly by using a Delta function with a very sharp rise and decay time to simulate, with no distinction between non-linear and linear zones, the attenuation of the energy per unit volume at the shock wave front as the wave moves away from the borehole. The results of the semi-empirical model were within the same order of magnitude as the results from the field test whereas only one result from the theoretical model came close to the result of the field test. However, even this closer result for the theoretical should be taken with caution as there was no measurement in the field test made at this distance from the borehole. Finally, because of its potential portability, convenience, and cost-effectiveness the theoretical model can be a most valuable tool for mining and civil construction operators in the early design of blasting rounds and of the mining operation itself.

Jan 1, 1993

A case study of a systematic approach to grinding circuit steady-state optimization is presented. After overall review of the flowsheet, two circuits were prepared for detailed testing. Functional performance analysis was chosen as the primary modelling system, and on this basis a quality assurance program for data gathering was implemented. A number of circuit design and operating variables were experimented with statistical analysis of plant test results revealed relationships previously unquantifiable by any other modelling technique. Improvements in classification system and mill grinding efficiencies were demonstrated and significant energy cost savings thus realized.

Jan 1, 1998

By Carl R. Peterson, John Herrick

INTRODUCTION The need for substantial advances in underground excavation technology has produced considerable research activity on a wide variety of concepts under a variety of Government funded programs. One goal of this "Rapid Excavation" effort has been the development of a means to apply the well-known virtues, both technical and economic, of the drill and blast method in a continuous process. The spiral blast concept, aimed at this specific goal, has been funded for initial studies (1) by the ARPA Rapid Excavation Program and, for the experimental work reported herein, by the Department of Transportation (2). The economy enjoyed by the drill and blast method stems from two factors: explosive energy is relatively cheap; and this energy is released so as to cause rock fragmentation largely through tensile failures. The relative ease and efficiency of tensile rock failures have long been recognized. The drill and blast process of course cannot be truly continuous since drilling and blasting (and other necessary functions) simply are separate, distinct operations. Although some surface explosive work has been done to avoid the need for drilled blast holes (3) it does appear that the high performance associated with explosive excavation requires placement of the explosive beneath the rock surface. This paper describes studies of blasting pattern which, in simplest terms, replaces the occasional heavy blast of conventional practice with frequent, much smaller blasts. The objective, of course, is to reduce the size of individual blasts

Jan 1, 1974

By R. E. Hucko

The goal of the U.S. Department of Energy (DOE) coal preparation R&D program is to develop technology to reduce the ash and sulfur contents of United States coals to levels such that the resultant product can be formulated into a high- quality solid or slurry fuel that could replace oil or natural gas in both new and retrofit applications. The Coal Preparation program is implemented by the Pittsburgh Energy Technology Center (PETC) and is conducted both in-house and by a cross section of industrial organizations, universities, and national laboratories.

Jan 1, 1986

By Michael Cruickshank

All life on Earth relies on the ocean and yet the ocean is 95 percent unexplored, unknown and unseen by human eyes,? said Paula Keener, director of education programs for National Oceanic and Atmospheric Administration?s (NOAA) Office of Ocean Exploration and Research. ?To better understand, manage and protect the ocean and its resources, NOAA believes it is critical to use the best technology to explore, discover, inform, educate and motivate? (MTS, newsletter, January 2011). In the last few decades, our understanding of the global mineral resource base has been drastically changed by some surprising new developments. The potential for commercial minerals per unit area in the oceans and seabed appears to be similar to that of the terrestrial lands. Thus, almost three-fourths of the global mineral resources are in, or under, the sea and are virtually undeveloped. The area of the Pacific seabeds alone is greater than the total area of the global lands. Half of the global seabed minerals are now controlled by nation states within their Exclusive Economic Zones (EEZ). The other half is controlled by the United Nations (UN) through the International Seabed Authority (ISA) within the ?areas beyond national jurisdiction? known as The Area. Thus, the Law of the Sea, ratified in 1994, has resulted in the largest transfer of control of natural resources in the history of mankind. This paper was prepared by the Society for Mining, Metallurgy and Exploration (SME) Committee on the Offshore Technology Conference for the SME Board of Directors and other interested parties. As the premier professional society for the mining and mineral community in the United States, with a history dating back to the 19th century, SME?s mission is to encourage and support young men and women engineers in the minerals industry, provide the services they need, improve the image of the industry, strengthen the networking among global industry professionals and engage in proactive collaboration among industry, government, academia and nongovernmental organizations (NGOs). The accomplishment of this mission can be strongly advanced by highlighting what is probably now the most significant development in the history of the modern minerals industry - the exploration of the marine environment and the understanding of the potential for the development of the minerals therein.

Jan 1, 2011

"What is your assessment of the minerals business?My experience with mining has been primarily in the coal sector until about 10 years ago, when I also became heavily involved in the aggregates and industrial minerals sectors. I have also had peripheral involvement through family and partners in the gold sector, with just enough exposure to gold to become fascinated. In 1994, I visited Ghana and considered the possibility of taking an expat assignment at a surface gold mine that had just been started.It is not news that the coal sector in this country has suffered tremendously in recent years. Especially hard hit is the central Appalachian region, where a number of factors combined have had a devastating effect on production, jobs and the economy. These factors include federal regulations affecting coal production and use, higher production costs and decreasing market share of Appalachian coal by the switch from lower sulfur coal in favor of lowercost, higher sulfur coal from the Illinois Basin, as utilities have installed scrubbers to comply with Phase II of the 1990 Clean Air Act Amendments. Nationally, the lower cost of natural gas has been a huge factor affecting coal use. In Kentucky, for example, which exports to other states around 70 percent of its coal, those markets are disappearing, as utilities close coal units in favor of natural gas. This is a structural change in the electricity market, and one that will become more pronounced as federal greenhouse gas regulations are implemented.We often hear the phrase, "the war on coal." While there are certainly a number of market factors affecting coal production and use, this phrase captures a different element that is all too real. The attacks have come from environmental activist groups for many years; from some in the media and, in the last few years, from a White House administration that believes strongly in alternatives to coal. Then, there really is an alternative to coal in the form of the previously untapped unconventional gas reserves that allowed utilities to move away from coal.Coal mining will continue in this country. In fact, it appears that our production is holding fairly steady at about a billion tons a year. And predictions that I have seen indicate this will continue for the next few years. What impact the Environmental Protection Agency’s Clean Power Plan will have beyond 2020 is another question.What do you feel is the future of the minerals industry - near term and longer term?Our society depends on the future of minerals in this country being strong. Near term, we are going through some of the typical cycles. Having also been involved in aggregates during the last few years, the business follows government infrastructure projects, such as highway construction and public and private sector development. Those sectors are heavily dependent upon government spending and a strong economy. Increased spending in those sectors, which appears to be on the horizon, should provide additional market shares for aggregates."

Jan 1, 2014

By John L. Halls

Modern business practice dictates that in order to ensure the economic optimization of investment, the size of any investment venture must be such that every increment of capital invested in such a venture yields at least a corporate minimum acceptable rate of return. This practice is based on the premise that alternative investment opportunities capable of yielding the minimum corporate return are immediately available. If a mining corporation is to make the maximum use of its investment funds, any capital investment in a mining property must comply with the above practice. The most important parameter in estimating ore reserves is the cut-off grade which is used to separate material into ore or waste. The cut-off grade is calculated on the basis that material of cut-off grade produces sufficient revenue to cover the estimated costs of mining and processing through to sales, including depreciation and produce a pre-determined profit. Ore reserves so estimated are adequate for determining the magnitude of an orebody but do not provide a sound basis for determining plant size and therefore capital investment in a new property or for expansion consideration on an existing property. From a financial analysis of this one ore reserve it is impossible to ascertain whether each increment of capital investment is providing the minimum acceptable rate of return, Other difficulties associated with the calculation of a cut-off grade including the determination of depreciation and the amount of pre-determined profit to be included in the cut-off grade calculation are outlined in the text. The proposed solution to determine optimum ore reserves and plant size for new properties avoids the complication of calculating a cut-off grade by computing a series of ore inventories using arbitrarily selected cut-off grades. A comparison of the cash flows generated by production from such ore inventories using incremental financial analysis clearly indicates the ore reserve and plant size which will best serve the corporation's investment and metal production goals. Incremental financial analysis of a corporation's operating mines and prospects assists management in assessing the comparative expansion and investment possibilities of each property for increasing or maintaining metal production on a long term basis.

Jan 1, 1969