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By R. L. Virta

Ball Clay -- Four companies - H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Imerys Group (formerly Kentucky-Tennessee Clay Co.), Old Hickory Clay Co. and Unimin Corp. - mined ball clay in four states during 2010. Production, based on preliminary data, was 910 kt (1.11 million st) with an estimated value of $42.9 million. That was a 10-percent increase in tonnage from 831 kt (916 million st) with a value of $37.7 million that was produced in 2009. Tennessee was the leading producer state with 61 percent of domestic production. It was followed by Texas, Mississippi and Kentucky. About 70 percent of production was airfloat, 20 percent was crude and 10 percent was water-slurried.

Jan 1, 2011

By Craig M. Sams

Matching mill? drives to mill power draws is a relatively new practice with the introduction of variable speed drive arrangements. Semi-autogenous grinding (SAG) mills are the focus of this paper as ball and rod mill characteristics are easily charted as charge loading and speed change. In addition, a look at types of drives available in the market and mechanical ratings is outlined to match the specifics of each drive.

Jan 1, 1991

By D. Yokom, T. Katsabanis, E. Tremblay

"The mining industry has always faced the problems of replacing retired mining professionals, retaining their knowledge, continuously developing the skills of local talent and employing under-represented groups. In expansionary scenarios the industry faces the additional challenge of increasing available talent. New talent has traditionally come from current mining programs; however, these programs have been declining in numbers, and those that remain face challenges such as fluctuating enrollments, and reduced budgets. Queen’s University and Northern College have partnered to develop an innovative new program that offers online mining education to engineering technologists seeking to upgrade their skills and obtain a Bachelor’s degree. The high quality, flexible curriculum, offered online, includes a wide range of learning activities that promote interaction (student-to-student, student-to-instructor, and student-to-content), and is enabled by modern learning technologies (an integrated learning platform, as well as a variety of types of purpose-built video, web conferencing, and simulation software). The program issues block transfer credit to college graduates, and consequently reduces the time to completion when compared to other Bachelor’s degrees in Mining. The curriculum has been carefully designed to enhance a balance of technical, managerial, and societal skills for students. The program also includes short summer field school sessions, where students gain practical application skills under the direct supervision of engineering experts. THE NEEDS OF INDUSTRY Canada is the world’s largest exporter of minerals, and the contribution of this sector to Canada’s gross national product is more than three times that of the automotive industry, representing approximately 4% of Canadian GDP (MiHR, 2015)1. According to a recent report by the Canadian Mining Industry Resources Council (MiHR, 2016)2, despite the recent downturn in commodity prices, the industry will continuously need to attract new engineers to replace talent retirements and prepare for the possibility of expansion when the industry recovers. As past experience indicates, the challenges during expansion times are severe and the effects on education counter-productive. For example, during the prolonged expansion cycle of 2006-2012, several new programs were started worldwide, and mining became the profession of choice for many young students. During the subsequent downturn in the industry, many of these programs face dwindling enrollments, placing their sustainability in question. However, there is a continual need by industry to retain employees, as well as attract and train local talent, while providing educational opportunities to its employees. High potential college graduates can find themselves reaching a ceiling in their advancement due to their lack of a University degree. Furthermore, there exists an under representation of women, immigrants, and Aboriginal peoples in the labour force, and engineering fields in general1,2. Traditional mining engineering programs have tried to respond to the needs of industry, as well as meet the needs of students seeking diverse and successful employment careers. These programs tend to cater to the educational needs and aspirations of a general population, and their ability to grow and respond to changing industry needs is constrained by the number of students they can attract, as well as the resources available to them in a steady-state scenario."

Jan 1, 2017

By John S. Carman

Our industry is in trouble. Real trouble. It has never been an easy, secure business. But to-day it is engulfed in revolutionary currents. No longer can there be reliance upon the checks and balances of market forces. Supply and demand largely dictated the economics of business enterprise in simpler days. To-day politics, in particular nationalism become increasingly dominant. And as governments expand and put out tentacles of interference in the direction of the mining industry, far too little understanding is evidenced as to how that industry works. Then there is something which is relatively new -stagflation. As the prices of minerals falls, the capital investment required for new extractive facilities soars at rates which far outdistance those which are cited by governments to indicate the magnitude of inflation. To illustrate; 1) In 1971 it was calculated that $355 million would be required to bring the Cuajone property in Peru into production. Five years later that stage was reached at a cost of $680 million. 2) With the Caridad mine in Mexico, estimated capital investment doubled between 1971 and 1976. 3) The requirements calculated for Cerro Colorado in Panama have risen in two years from $560 to $800. 4) The budget of $240 million for Sar Chesmeh in Iran in 1971 had become $500 million by 1976.

Jan 1, 1977

By John J. Schanz

The ideal entering freshman for the College of Mineral Industries possesses the necessary aptitude to complete successfully a difficult technical curriculum, has a highly developed intellectual curiosity and adequate preparation in basic mathematics, sciences, and English, is enthusiastic about pursuing a career in the mineral industries, and puts forth a good academic effort while attending Penn State. The present programs of the University?s Division of Counseling and the College of Mineral Industries are directed toward providing the College with students who will meet these requirements. At present, freshmen are admitted to the Pennsylvania State University without entrance examination if they are in the upper two-fifths of their high school classes. All Pennsylvania students in the lower three-fifths are required to take the University Aptitude Test and all out-of-state students the College Entrance Board Examinations. Such students are admitted only if they score sufficiently high on either test to indicate the ability to do satisfactorily the work of University students. Only to this extent, are native intelligence and areas of greatest aptitude known for the Freshman prior to admission, and they are, therefore, largely beyond the control of either the Division of Counseling or the College of Mineral Industries. Because all freshmen, with exceptions that are numerically minor, are required to select a curriculum before admission to Penn State, each student who presents himself for required counseling during the summer, prior to his first semester, has already made a choice of his course of study. In many instances, such choices have been made without a rational and serious consideration of the student?s abilities and interests. Through tests given between the date of admission and the date of the counselling interview, it is possible to measure these characteristics and for the Division of Counselling to advise the student of his chances of success in his chosen curriculum. If he is qualified for the curriculum he has selected, Counselling Service goes on to direct the student?s attention to those other curriculums which are in the same general area as the one he has chosen and which will also challenge his abilities and correspond to his interests, Through this counselling, the curriculums of the College of Mineral Industries, which are often less well known to high school students than others for which they are no more qualified by ability or interest, are brought to the attention of the incoming freshman.

Jan 1, 1959

By Bahadir Ergener, Angel Maria Tobar Escudero, Sandra Nowosad

Modern mining companies are increasingly turning to integrate digital technologies and circular economy (CE) principles to increase the sustainability of their operations. The so-called “mine of the future” is envisioned as a smart, integrated system where technologies such as automation, artificial intelligence, digital twins, and real-time data analytics work in harmony with human decision-making and environmental responsibility. Already in 2018, McKinsey and Co. identified that the three drivers that would define a technology-enabled change in mining would be technology, including digital, analytics and automation, management systems able to identify the potential and value of the new technologies, and the culture and capabilities of the organisation, leaning to more agile and responsive organisations. From the three drivers, in the last five years most developments have been centred in the first one. Yet despite rapid advances, the adoption of new technologies across the industry today remains uneven and often slower than expected. Furthermore, it has been identified that the problem on the technology uptake often relay on the lack of operational readiness, process incompatibility or misalignment, and resistance to change within the mining operation. At the same time, leading companies like Rio Tinto, BHP, and Anglo American have each launched major digital transformation programs. Rio Tinto, for instance, operates one of the world’s largest autonomous mining fleets and has integrated digital technologies across nearly all its operations (Rio Tinto, 2025). BHP is actively investing in information and communication technology (ICT) development as artificial intelligence, big data analytics and robotics, and has partnered with battery companies to pursue circular economy initiatives. Only in 2024, their ICT spending reached US$ 438.3 million (Global Data, 2024). Anglo American has rolled out its FutureSmart Mining™ framework, explicitly aligning innovation with circularity and sustainability goals (Anglo American, 2025). The accelerating pace of change across leading mining companies along with the uneven adoption in the technology uptake clearly state how digital transformation is no longer just about implementing new tools, instead it requires a fundamental shift in how people, processes, and culture are aligned. Addressing only the technical layer, while neglecting the human and organizational dimensions, leaves transformation efforts fragile and unsustainable. As the industry must act decisively to close this gap, the true test of transformation is today centred in changing behaviours, mindsets, and systems. Even at the listed leading companies, initiatives have encountered cultural and structural resistance that are relatable to the industry in large: siloed departments fail to collaborate, procurement teams focus on upfront costs rather than lifecycle value, and operators are often excluded from early-stage planning, reducing buy-in. In many cases, a lack of communication or failure to link technology to real operational bottlenecks leads to disengagement at the ground level. This friction reveals a broader issue: mining organizations have historically treated technology and culture as separate domains, when in fact they are deeply interdependent. To address this, the authors propose a systems engineering approach focusing on the mining operations as a complex socio-technical system composed of people, processes, and technologies. Systems engineering offers tools and frameworks for mapping interactions, aligning incentives, designing for feedback and adaptation, and integrating change across organizational boundaries. Specifically, besides technical requirements, it demands treating culture not as an afterthought or side-effect, but as a design variable that must be intentionally shaped alongside infrastructure and workflows. This paper explores how this approach can be applied in practice, by analysing a real-world case scenario where resistance to innovation was overcome not by technical capabilities alone, but through alignment of stakeholder incentives, thoughtful communication, and cultural integration. A particular focus is set on the adoption journey of the Powerbit X, a drill bit technology with significant potential for operational and environmental gains.

Feb 22, 2026

By D. A. Peacock

"INTRODUCTION Outer space technology and exploration have reached a tipping point so that mining and mineral processing in outer space is now a certainty and not a dream. Several competing companies, worldwide, are well on the way to building spaceships to land on the Moon and eventually mine the Moon and asteroids for volatiles, rare earth metals and Helium-3. The Google Lunar XPrize offers a $30 million prize1. China has recently landed a spacecraft on the Moon. The European Space Agency, with cooperation from the United States, has landed a spacecraft, Philae, on a comet. And, Mars One is planning a one-way trip to establish a settlement of humans on Mars. How and why are the Moon and asteroids and their resources of interest to private space industry and companies? Why are the Moon and asteroids viewed as a potential business venue? GEOLOGY OF THE MOON AND ASTEROIDS –WHY DO WE WANT TO MINE THERE? Space enterprises are actively working towards establishing and operating lunar and asteroid mining locations for resource extraction, resource processing, conversion to salable products, and distribution of the products and services in space and to Earth and beyond2. Forty-five years ago, the Apollo manned missions to the Moon returned rocks and regolith to Earth, which were studied and analyzed. What they found was that the Moon contains valuable minerals and resources. These minerals are largely due to meteor and asteroid impacts, which have, over eons, created this mineral rich regolith. These impacts have occurred on Earth as well, for billions of years, particularly early on in the history of the solar system. However, on Earth, wind, water, and vegetation have erased most of these impacts. On the Moon, in contrast, the only weathering is caused by subsequent impacts and the solar wind. The Moon regolith contains valuable rare earth minerals, platinum-group minerals (particularly where the Moon has been impacted by asteroids), volatiles (useful for processing and habitation), Helium-3 and titanium. Almost non-existent on earth, Helium-3 is abundant and accessible on the Moon and can be used in nuclear fusion power plants, producing much more energy than fission reactions and with much less radioactive waste. One of the main reasons Helium-3 is sought after as a fusion fuel is because there are no neutrons generated as a reaction product. Governments and private companies focus on mining of Helium-3 on the Moon as a basis for their economic models. Moon Express, one of the private companies who is planning on mining on the Moon, will recover moon rocks to fund its early operations25. Subsequently, it will recover Helium-3, platinum, and rare earth metals, as it engages in surface mining operations."

Jan 1, 2016

By Deborah A. Peacock

"Outer space technology and exploration have reached a tipping point, so that mining and mineral processing in outer space is now a certainty and not a dream. Several competing companies worldwide are on the way to building spaceships to land on the Moon and eventually mine the Moon and asteroids for volatiles, rare earth metals and Helium-3.The Google Lunar XPrize offers a $30 million prize1. China has recently landed a spacecraft on the Moon. The European Space Agency, with cooperation from the United States, has landed a spacecraft, Philae, on a comet. And, Mars One is planning a one-way trip to establish a settlement of humans on Mars.How and why are the Moon and asteroids and their resources of interest to private space industry companies? Why are the Moon and asteroids viewed as a potential business venue?Geology of the Moon and asteroids — Why do we want to mine there?Space enterprises are actively working toward establishing and operating lunar and asteroid mining locations for resource extraction, resource processing, conversion to salable products and distribution of the products and services in space and to Earth and beyond2.Forty-five years ago, the Apollo manned missions to the Moon returned rocks and regolith to Earth, which were studied and analyzed. What they found was that the Moon contains valuable minerals and resources. These minerals are largely due to meteor and asteroid impacts, which have, over eons, created this mineral-rich regolith. These impacts have occurred on Earth as well, for billions of years, particularly early on in the history of the solar system. However, on Earth, wind, water and vegetation have erased most of these impacts. On the Moon, in contrast, the only weathering is caused by subsequent impacts and the solar wind."

Jan 1, 2017

By Roy A. Grancher

Construction materials indeed face a dilemma...as does the building industry as a whole. A stop & go economy; a severe drop; in housing starts; lingering indecision over just what corrective steps are to be taken or to their degree of commitment; no less basic disagreement in regard to which of the, Nation's problems is really the most pressing -- inflation or recession? Optimism has become a rare quality these days. At moat the cautious view is that this new year will see a long, hard struggle back, with hopes that 1976 at least can truly mark a dual anniversary celebration for the United States and its economic health. Yet the paradox is that once recovery does return, those very construction minerals and materials --which in recent years have experienced the ups and downs of overcapacity, shortage, and now declining demand again-- will once more face the spectre of mass inability to service revived and growing needs for its product. Mounting costs, present marginal expansion investment, and substantial lead times required for new facilities to come into production, could well form a bottleneck to economic upswing. The result again can be another cycle of shortage-induced inflation, and with it continued gyrations within the demand supply relationships of the country's building industries.

Jan 1, 1975

By A. G. Yapo, T. W. Camm

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017

By John Marsden

Despite the recent pullback in metal and mineral prices, and the associated market adjustments, the mining industry is still facing a serious issue with the declining availability of graduate expertise. This is due to a combination of an aging workforce, retirements and retrenchments, coupled with a lack of suitably qualified graduates entering the workforce. The issue has certainly improved since 2004 when the industry picked up the rates of hiring graduate engineers and mining/mineral school enrollments picked up in response. This hiring effort has helped to cover the ?gap? years from about 1985-2000, when industry demand for graduates was particularly poor. However, the recent market pullback is likely to set back this progress, as recruitment and hiring wavers as a result of cost cutting measures and economic uncertainty. A key issue for the mining industry is how to ensure the survival and growth of relevant ?core? degree programs. Such programs include mining, metallurgical, mineral processing and geological engineering. The mining industry needs a healthy, high-level education program to ensure an adequate supply of appropriately qualified graduates for the mining industry. Two-thirds of the professionals entering the minerals industry who graduated within the past 40 years graduated prior to 1985. Since 1985, we have been living off the legacy of graduation classes from the mid-1970s and early 1980s. It is estimated that we have been producing graduates at approximately 40 to 50 percent of the sustaining rate since about 1985. Further growth in the domestic industry would increase graduate requirements significantly, and the export of U.S.-graduates to other parts of the world (as is currently occurring) also impacts the total graduate requirements.

By R. W. Culbertson

During the 1920's, approximately 11,000 small gasifiers were in operation in the United States. They converted about 15 million tons of coal per year into low Btu gas. In some cases, hot raw gas was used for applications such as firing open hearth furnaces or brick kilns. In other cases the gases produced in the gasifiers were cooled, cleaned and desulfurized for various utility and industrial purposes. The steel industry was by far the largest user. The most important fact was that the conversion of coal to a usable fuel gas was demonstrated to be commercial. During the late 1940's and early 1950's, this form of energy was largely replaced by natural gas as the pipeline net work was expanded. Producer gas was no longer economically competitive. Over the past twenty-five (25) years, government controls on the interstate price of natural gas have maintained this situation. At present only three commercial small coal gasifier plants are still in operation in the United States. These facilities are operated by the Glen-Gery Corporation which is located in eastern Pennsylvania; the National Lime and Stone Company which is located at Carey Ohio; and Holston Defense Corporation which is located at Kingsport, Tennessee. There are, however, numerous operating gasifiers in other parts of the world. Recent events indicate that this situation is changing. The quantity of domestic natural gas available to the interstate market has been declining at the same time that demand for all forms of energy has been increasing. The current potential market for gas with a heating value ranging from 100 to 500 Btu per cubic feet has been estimated at sixteen (16) quads (16 x 1015 Btu) per year. This is expected to grow to twenty (20) quads by the year 2000.

Jan 1, 1978

By M. Adnan Goksel

A blast furnace test of approximately 5,000 tons of PelleTech Corporation (PTC) cold bond pellets was successfully run at Kaiser Steel Corporation (Kaiser) Steel Manufacturing Division at Fontana, California. The pellets were produced from mill scale, BOF dust and blast furnace flue dust. A 15 day base period, during which time the metallic burden was 2/3 heat indurated pellets and 1/3 sinter, preceeded the test. During the test period the metallic bur- den was 10% cold bond pellets, 56.7% heat indurated pellets and 33.3% sinter. A 15 day post test base period followed during which the PTC pellets were replaced by conventional pellets. The pellets were produced in the 3.C Semi-works Facility located on Kaiser property. The facility incorporates the Michigan Technological University Hydro-Thermal Agglomerating Process.

Jan 1, 1979

By J. Réal Cloutier

[Options are a natural extension of the forward and futures markets as they offer fexible method of hedging exposure. -An organized options market is preferable to the "over the counter forward markets since EGCC (EOE, ME, VSE) assumes responsibility for contract fulfillment minimizing credit risks by guaranteeing transactions. -Options ante considerably more "fexible" than the futures and forward markets, permitting prompt, precise and respected adjustment of one's exposure risk position. -The risk to the buyer of the options market is limited to the initial premium paid.]

Jan 1, 1983

By Erik Sundström, Magnus Nygren

Having seen significant improvements to accident rates in the last 40 years, companies in the Swedish mining industry now show a greater focus on the development of safety cultures throughout their organisations and workplaces. However, there is a lack of research examining the different safety initiatives and strategies practiced in the industry today. This study explores the potential influence and consequences such initiatives may have on the development of safety cultures in the Swedish mining industry. Twelve interviews with experts on safety initiatives from four different Swedish mining organisations were conducted and analysed in a process based on qualitative thematic analysis to identify notable connections to safety culture development. The results of these interviews highlight proclivities in the implementation and use of safety initiatives such as subjects of focus, methods and desired effects. This enables the interpretation of the conceptualisation and methods for the development of safety culture in these organisations based on their approaches to safety development. We believe the results of this study can serve as support for discussions on safety culture development in the Swedish mining industry, and be of interest for international mining industries, in addition to approaches to research in this field. However, we also believe it is important to emphasise the opportunities to approach safety culture in mining from different perspectives than those common today.

Jul 19, 2023

By James Matlock

The announcement of a minable reserve of 13.6 Mt (16 million tons) averaging 0.9 g/t (0.027 oz per ton) Au and 2.4 g/t (0.71 oz per ton) Ag for the open pit-heap leach reserve at Red Mountain No. 3 in Ouray County, Colorado, by Cornucopia Resources in November 1985 brings another open pit-heap leach precious metal ore body to the production stage. With about 8.2 Mt (9 million tons) of waste and metallurgical studies showing acceptable recovery rates, low reagent consumption, and good final percentage recovery, Red Mountain is a discovery that will add to the precious metal inventory of the US. Frank Baumgaruler of Denver, CO, recognized the precious metal potential in Red Mountain No. 3 and acquired all of the old claims. James Matlock conducted a field reconnaissance over Red Mountain No. 3 independently of the Baumgartner activities and recognized epithermal alteration and mineralization in the Tertiary volcanics. He recommended acquisition of the ground and was able to obtain rights and drill six core holes for Amoco in 1982. Amoco drilled a further nine core holes in 1983, but then dropped the property. Cyrano Resources examined the data and through its consulting geologist, V.F. Hollister, acquired the rights dropped by Amoco. In 1984 Cyrano began further drilling of the ore zone demonstrated by Amoco but they were then acquired by Cornucopia Resources. Cornucopia completed development of the property and commenced the permitting process in 1986. The property was recognized as a disseminated gold deposit by both Baumgartner and Matlock, and both deserve credit for properly evaluating mineralized outcrop in the Tertiary volcanics. However, Cornucopia recognized the profit potential in the heap leach exploitation of the ores and de- serves credit for completion of premine feasibility studies. The discovery is clearly a geological one, but the premine engineering studies were essential to the conversion of the prospect to a commercial mining enterprise. The deposit lies on the circular bounding fault of the Silverton caldera. Two reprints follow that help understand the geologic setting of the ore controls.

Jan 1, 1990

By Ava Walker

The first form of a surety bond was an honest handshake between two or more parties agreeing to a decision, and their personal guarantee of following through to completion. This has all changed. In 1895, the United States Treasury Department disclosed that $35 million worth of personal surety guarantees on file had become worthless. A law was then passed requiring all surety bonds, in favor of the United States, must be corporate surety bonds. Today, a surety bond is one of the nation's leading fi¬nancial instruments used to guarantee the completion of an obligation. One hundred-fifty years before cor¬porate surety bonds, outcrops near Richmond, VA, were being mined. These surface mines became under¬ground mines. Today, both are still being used to obtain a leading energy source, coal. Since that time, more than 5956 km2 (1.47 million acres) of coal mined lands have been reclaimed in the US (Coal News, August, 1987). More than 25,000 state and Federal mining permits cover¬ing 14,164 km2 (3.5 million acres) have been issued during the last 10 years. Coal production has exceeded 7.2 Gt (8 billion st). More than 5665 km2 (1.4 million acres) of mined land has been reclaimed by active coal mining opera¬tions and 267 km2 (66,000 acres) of abandoned mined lands have been re¬claimed by others. Reclamation bonds were freely writ¬ten in the 1970s. So why are they almost extinct today? Contract bond losses have been severe in the past several years, sureties reporting losses exceed¬ing 110%. But the same proof is not provided on coal reclamation bonds. A surety bond is generally required when one party has an agreement with another party, and that party wants a guarantee from a third party that a job will be completed according to the terms and conditions of a written contract. In the case of a reclamation bond, the surety company (surety) is the financial party. It extends the credit and a guarantee to the obligee (the State, Commonwealth, or Office of Surface Mining) that the principal (the coal operator/company) will complete the terms and conditions of the contract (the rules and regulations governing mining and reclamation). The Surety Association of America defines a surety bond as an agreement providing for monetary compensation should there be a failure to perform specified acts within a stated period. Webster's Dictionary defines surety in the following ways: "l: the state of being sure; 2a: a pledge or other formal engagement given for the fulfillment of an undertaking and; 3b: one who has become legally liable for the debt, de¬fault, or failure in duty of another." Banks never make accommodation loans. Either the loan is good or no loan is made. Surety companies feel the same way about surety bonds. In fact, the average person does not realize the dangers of becoming surety for another. How does a surety determine if a company is worthy of receiving surety credit? How is a coal account under¬written today for an obligation that may not be released for many years? When a surety company executes a reclama¬tion bond, it financially puts its name behind the coal company and its guaran¬tee that should the coal miner default on the obligation, the surety will fulfill the contract. How is the surety to determine if a coal company may still be in business five, 10, 20, or 40 years from today?

Jan 1, 1989

By Henry O. Ash

On June 16, 1982, Rio Blanco submitted a request to the US Minerals Management Service for a suspension of operations under its federal oil shale lease. The company also wanted a five-year delay in the requirement for further minimum royalty payments and a five-year extension of the primary lease terms of 20 years. The request was granted in late July in the midst of yet another slump in oil shale activity. Rio Blanco holds one of four Federal oil shale leases that were granted under the Interior Department's Prototype Oil Shale Leasing Program in 1974. That year the DOI offered for lease six federal oil shale tracts, two each in Colorado, Utah, and Wyoming. The leases in Colorado and Utah were granted for substantial bo¬nus bids as shown in Table 1, but the Wyoming tracts had no takers. In the eight years hence, no oil shale has been produced commercially. Indeed, the prospects for successful oil shale development have fluctuated widely, continuing a 60-year- old cyclical pattern in the fledgling industry. The prototype program was developed and initiated while this infant industry struggled to begin anew, without the benefit of any federal oil shale leasing regulations, or any history of federal oil shale leasing at all. Permanent regulations were not required because the effort was limited and designed to provide the foundation for any future leasing program. Section 21 of the Mineral Leasing Act of 1920, a Nov. 30,1973 Federal Register notice, and the leases themselves constitute the legal and regulatory framework for leasing and developing prototype oil shale tracts. The prototype leases contain some unusual provisions including installment payments of the bonus bids, credit of early development costs against payments due the government, adjustment of royalty rates according to regional crude oil price fluctuations, and unusually extensive and detailed environmental stipulations. Several of the provisions were intended to provide incentives for early development and financial penalties for failure to develop. The requirement for minimum royalty payments in lieu of actual production royalties beginning in the sixth year of the lease falls in the latter category. After the sixth year, the required minimum payment is increased east year through the 15th year by an increment equal to that due in the sixth year. The minimum royalty then remains the same through the final five years of the primary lease term. Minimum royalty is calculates on a different production level for each prototype lease, based on the quantity of 125 L/t (30 gal/st) shale estimated to be recoverable from. each tract by room-and-pillar mining. That mining system was selected for reference as the only proven extraction method for oil shale at that time (early 1970s) The minimum royalty (production) rate was calculated for each tract by direct comparison of its estimated recoverable 125-L (30-gal) resource to a hypothetical tract containing 1.9 Gt (2.1 billion st) of recoverable 125-L (30-gal) shale. For the hypothetical lease tract, the minimum production for the sixth year was calculated to be 3.2 kt/d (3,500 stpd), increasing by a like amount each lease year through the 15th to a daily production rate of 31.7 kt (35,000 st). Under this formula, the hypothetical lease tract would yield $16 million in minimum royalty payments over the 20-year primary lease term if there were no production, no development credits taken, and no adjustment of the royalty rate due to fluctuation of regional crude oil prices. The production rate of 31.7 kt/d (35,000 stpd) was a somewhat arbitrary figure that was considered, in the early 1970s, to represent a minimum size for a commercial oil shale operation. A production rate of 7.9 dam3/d (50,000 bbls/day) soon supplanted that smaller mine production figure as a rule of thumb for the minimum size for a commercial facility. The proportional relation-

Jan 11, 1982

By Thomas J. DeMull

Heap leaching was introduced to the precious metals mining industry approximately two decades ago as a simple, low cost method for recovering gold and silver from ores. Since that time, operational experience has contributed to knowledge and understanding of the process, making it a reliable alternative to conventional milling processes for low grade ores. At time of this writing, dozens of heap leach operations are active producing hundreds of thousands of ounces of gold and millions of ounces of silver annually. These successes have caused the popular press to acclaim heap leaching "high-tech" gold mining, but, despite the hype, the process remains a simple one. An example of simplicity in heap leaching is the operation established in 1986 at Amax Gold's Sleeper Mine. Starting with a simple goal, namely to produce gold from sub-mill grade ore at low cost, heap leaching was rapidly implemented at Sleeper; only five months after testwork started, leaching commenced on the first commercial scale, 50,000 ton heap of low grade ore. Sized at 600,000 tons per year to produce 10,500 oz gold per year, the low grade heap operation has performed beyond expectations. During the first year of production, 881,800 tons have been leached producing 15,665 oz of gold and 35,528 oz of silver. Operating ·costs for the first year have averaged $112 per oz gold produced ( or $95 per oz if silver credit is included). Successful implementation of heap leaching at Sleeper has had a dramatic impact on ore reserves and future operations.

Jan 1, 1998

By William Gleason

"Ed Rapp is among those who believe in the saying that necessity is the mother of all invention. Rapp is the president of Caterpillar’s mining group. As such, he is tasked with leading the world’s largest mining equipment maker, and its customers, through this time of lower commodity prices, while also positioning his company to be prepared for better days that lie ahead.The decade-long mining boom fueled by growth in emerging markets and demand for commodities that led to record prices for some metals paused in 2008 with the global financial crisis. However, according to Rapp, thanks to stimulus packages around the world, and in particular the stimulus from China that was focused on infrastructure, the mining sector recovered fairly quickly, and from 2010 to 2012, mining was strong.And then the stimulus stopped. Credit dried up and global growth began to slow down and, in the three years since, commodity prices have declined by an average of 60 percent. Caterpillar expanded during the boom, acquiring Bucyrus, and investing billions into the mining sector. It has felt the pinch of the slowdown as much as any mining company in the world. These pages, and those of other mining publications as well as mainstream media, have been filled with stories of doom and gloom about the industry. But Rapp, while acknowledging that the difficult times have been painful, also said Caterpillar sees opportunity in the slow down and reaffirmed his company’s commitment to the mining industry as absolute."

Jan 1, 2014