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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 Catherine C. Kilgore

The Bureau of Mines investigated the availability of lead and zinc from 104 domestic mines and deposits. Fourteen primary lead and fifty-three primary zinc operations with in situ demonstrated resources containing 27.3 million metric tons (t) of lead and 53 million t of zinc were subsequently evaluated. Potentially 17.5 million t of lead and 2.4 million t of byproduct zinc could be recovered from 14 primary lead operations. Economic evaluations performed in constant January 1982 dollars determined a long-run total cost per pound of recoverable commodity. Including a 15-pct discounted-cash-flow rate of return (DCFROR), 59 pct of primary lead was potentially available at or below $0.32 per pound of lead. Potentially 40 million t of zinc and 5.6 million t of byproduct lead could be recovered from 53 primary zinc operations. Ninety percent of the recoverable zinc is potentially available from currently nonproducing mines and deposits, and a weighted average of their long-run total costs was determined at $0.98 per pound of zinc. At a breakeven (0-pct) DCFROR, these non producing operations had a weighted average long-run total cost of $0.58 per pound of zinc. Sensitivity analyses illustrated that operations that recover byproducts were most sensitive to fluctuating metal prices, producing operations were more sensitive to increased smelter treatment charges, and nonproducing operations were impacted most by the DCFROR.

Jan 1, 1983

By J. G. Eacott

This paper reviews the role of oxygen potential and the advances that have been made in the application of tonnage oxygen in copper smelting. Brief reference is made to reaction kinetics before attention is turned to the thermodynamic considerations in copper melting to illustrate the importance of oxygen and. oxygen potential in the component parts of the overall smelting process. The chemical potential diagram for the Cu-Fe-S-O-Si02 system is used to elucidate the difference b etween the conventional matte smelting process and the modern continuous processes. A progressive oxidation scale' is constructed to show the common elements which exist, and the matte grades produced, during the smelting of concentrates to blister copper in commercially available copper smelting processes and those under development. The common route in producing blister copper from molten mattes, regardless of process, is illustrated on the Cu-Fe-S equilibrium phase diagram. The essential features of oxygen enrichment, in terms of its effect on combustion conditions (i.e. oxidation of fuel and sulphide minerals) and the heat balance are outlined. The benefits of oxygen enrichment are listed. The influence of tonnage oxygen and its effect on productivity, fuel savings, gas volume and strength in various copper melting processes are examined as a state-of-the-art review. Reference is made to the economics of tonnage oxygen utilization.

Jan 1, 1983

By Ani Chitaley

A new method has been developed for handling supplies in underground bituminous coal mines. A survey indicates industry wide implementation potential for the proposed method. Reduction of supply handling accidents' by as much as 73% and improvements in the productivity of face operations by at least 3% are anticipated benefits. The new method is based on the palletization of daily supplies and the use of a forklift for carrying out the handling tasks at the underground section. A prototype of the forklift has been delivered to the U.S. Bureau of Mines. The forklift has demonstrated several important features necessary for underground supply handling such as compactness, maneuverability, visibility, ease of control and auxiliary attachments for hoisting, carrying timber and pulling. Design improvements are recommended for future generation underground forklifts. These relate to higher speed, increased battery duty cycle, higher payload and modified traction/steering to eliminate plowing of soft mine floors.

Jan 1, 1983

By G. R. Peterson

To determine the availability of aluminum from world bauxite resources, the Bureau of Mines investigated 139 bauxite deposits worldwide and evaluated the potential production of aluminum based on the demonstrated resources of bauxite ore from 91 mines and deposits in 22 market economy countries. The demonstrated resources of the bauxite mines and deposits included in this study represent an in situ resource of 20.2 billion metric tons of bauxite. Total identified bauxite resources in market economy countries amount to roughly 31.9 billion tons. Of the demonstrated resource, some 18.8 billion tons of bauxite considered minable provide a production potential of 3.6 billion tons of primary aluminum. Given the wide geographic distribution of bauxite deposits, stable supplies of bauxite for aluminum production seem assured well into the next century. However, a tight market situation could develop during the 1990's unless the real price of aluminum increases enough to stimulate massive new investments in production capacity, particularly in refining and smelting. This study indicates that a real price of at least $0.85 per pound (in January 1980 dollars) would be necessary to stimulate the required investments and provide a sufficient rate of return on invested capital.

Jan 1, 1983

By R. D. Rosenkranz

The Bureau of Mines has investigated the availability of copper from 272 deposits in market economy countries. The deposits studied have demonstrated resources totaling 413 million metric tons of contained copper and account for more than 90 pct of the reserve base for market economy countries. Using data gathered as part of its Minerals Availability Program, the Bureau performed geologic, engineering, and economic evaluations in order to determine the copper production potential of each deposit. At the 1981 copper market price of $0.85/lb, the deposits studied could economically produce an estimated 88 million metric tons of copper (allowing for profit computed at a 15-pct rate of return), primarily from mines operating at the time of the study (1981). At this price, producing mines in market economy countries could economically produce only 2.1 million metric tons of refined copper per year. However, actual 1981 production was 6.2 million metric tons, indicating that many mines continued to operate even though they were unable to cover all production costs. For U.S. producing mines, the estimated average cost of production per pound (including profit at a 15-pct rate of return) was $0.15 higher than the average cost in other market economy countries.

Jan 1, 1983

By I. S. Blair

The introduction of the 36 MVA smelting furnace at Mufulira, and the experience gained during the first five years of operation have been described previously (6). Based on this experience the furnace was rebuilt in 1977., Details of the modifications made during this rebuild are described. Subsequent to the rebuild, refractory failures, particularly in the electrode ring bricks of the sprung arch roof, continued to cause concern, and repair and improved roof control methods are described. Electrode breakages continued, but developments in casing design and electrode preparation have resulted in significant improvements. Modifications in the electric furnace gas handling system are outlined, together with details of further changes to be implemented in the near future. The systems developed for metallurgical control of the furnace and the thermo-dynamics of the process are discussed. The electric furnace at Mufulira is now operating at above design production levels, and has decisively justified the choice of this technology in situations with inexpensive electric power. The potential for further increases in production capacity from the Mufulira unit, and improvements in design for new units are discussed.

Jan 1, 1983

By Alexander Sutulov

It is calculated that since the beginning of last century, which practically coincides with the beginning of the Industrial Revolution, our civilization has consumed around 239.5 million tons of copper (see: Table 1). According to the most pessimistic projections of today, with only a 2.5% annual growth rate in demand, we are bound until the end of this century to consume another 200 million tons of copper in remaining 17 years. A recent study made by US Bureau of Mines (1) indicates that the proven ore reserves of 150 major operating mines and about 120 deposits sufficiently explored for development and feasibility studies accumulate a total mass of 49.3 billion tons of ore, assaying an average of 0.82% Cu and containing around 324 million tons of recoverable copper. Consequently, there is a high grade of probability that the bulk of our future ore supplies, for our demand of, say, next 25 years will cane precisely from these mines. The interesting point in USBM study is that it indicates the recoverable byproduct content of these ores and which is: 118.2 million troy ounces of gold 2277.4 million troy ounces of silver 7.1 million tons of lead 24.7 million tons of zinc 1.3 million tons of nickel 3.1 million tons of molybdenum 765 thousand tons of cobalt, and 720 thousand troy ounces of platinum. This information gives us a relatively reliable profile of our future ores for next 25 years, and thus makes possible evaluation of byproduct credits in our future copper mining and producing activities.

Jan 1, 1983

By Dennis R. Twining

Recently a mining analyst for a major bank called me to say that during his travels he had encountered an electric utility interested in a new uranium supply. Since we produce uranium as a by-product of phosphate operations rather than as a primary product, he assumed we simply sold our output in the spot market and that a new prospective purchaser would be of interest to us. This assumption was incorrect; the uranium had already been sold on a long term basis at terms more favorable than the currently depressed spot market. From the outset our approach to the marketing of uranium was based on the principle that by-product marketing is not unlike primary product marketing. This was particularly appropriate in the case of uranium, as we were planning a considerable technical and capital commitment to a new business. This illustrates: that the fundamental principle in by-product marketing is to follow a primary product strategy; that the terms "by-product" or "co-product" are creations of accountants; that they have no place in marketing decisions! Traditionally, the term "by-product" has implied that only a secondary marketing effort is required. Recent history has contradicted that view by demonstrating that by-product values can have marked impact on a mine's revenues and costs. In fact, by-product values can spell the difference between success and failure.

Jan 1, 1983

By P. Rooney

In due course, new smelters will have to be installed in order to meet the increasing worldwide demand for copper. This paper presents the results of a study made for the purpose of identifying the most desirable countries in the world in which to locate a new smelter. Both sociopolitical and economic factors were taken into account. Criteria developed and methods used to assess each possible location are described. The study indicated that the most interesting potential locations are Canada, -Chile, Portugal and the USA for new copper smelting complexes.

Jan 1, 1983

By P. J. Mackey

New and emerging, as well as proven technologies for the smelting of copper, nickel, lead and zinc are briefly reviewed. The number of new technologies available today is greater than at any time in the past, and interest and development activities remain high despite the economic dif-ficulties faced by the non-ferrous metallurgical industry. Part of the impetus is provided by the realization that only the most cost effective producers will remain competitive, and that new technology is one key to cost effectiveness. The commercially proven "new" copper smelting processes can now be considered to be conventional- technology, and are expected to dominate copper smelting for acme time. There is a growing. interest in continuous copper converting, although direct smelting and converting to copper in one vessel remains the- ideal. There is little activity in nickel smelting. After many years. of development, it appears that several new direct lead smelting processes will soon be a commercial reality. The electrolytic zinc process is expected to continue its dominance, although there is a renewed interest in pyrometallurgical approaches. One of the new zinc processes, and a molybdenum smelting process, illustrate the possibilities of using plasma technology in non-ferrous metallurgy. In the area of complex sulphides, there is perhaps less interest in the treatment of bulk con¬centrate, and more in the treatment of so-called dirty copper concentrates. Much of the technology ancillary to smelting has remained relatively unchanged, and more effort must be made to advance the technology in areas such as materials handling, gas cleaning and sulphur fixation, and energy recovery. More attention to engineering design is also needed. Escalating capital costs may make mini-smelters attractive, but imaginative technology and innovative engineering will be required to make them cost effective. Finally, a glimpse is offered of the smelter of the future.

Jan 1, 1983

Past issues of Minerals and Materials have discussed such aspects of the economy as consumption and investment expenditures, interest rates, productivity, and international trade barriers and their effect on the minerals industry here and abroad. In this issue, we will (l) look at recent indications of a possible economic recovery, (2) present 1983 expectations reflecting the results of industry surveys conducted by the U.S. Department of Commerce (DOC), and (3) briefly discuss the contribution of the U.S. mining industry to total gross national product (GNP). THE RECOVERY Throughout most of 1982, DOC's Composite Index of Leading Indicators provided evidence of impending improvement in the economy. The index increased moderately during eight of the months in 1982 and then jumped an estimated 3.6 percent in January 1983 (table 1). While the leading indicators continued to predict improvement, the general economy, as measured by the Index of Industrial Production, continued its slide through November 1982 (table 2). Finally total industrial production increased in December 1982 and continued on an upward path in January and February, as predicted by the leading indicators.

Jan 1, 1983

By Christopher J. Farrow

This paper describes the grinding circuits installed at two remote sites in northern Canada. One is Cominco's Polaris Project at Little Cornwallis Island; a barge-mounted lead/zinc concentrator. The other is Echo Bay Mines' Lupin Project at Contwoyto Lake, 400 km northeast of Yellowknife, a gold mine, all components of which had to be flown to the site. Logistics and considerations of operating and maintenance presented challenges which were met by innovative design. The evolution of the grinding circuits is discussed. Both plants are operating at design throughput.

Jan 1, 1983

By V. P. Keran

The lead and copper smelting processes employed by Mount Isa Mines Limited, Mount Isa, Australia, are used to illustrate an operating viewpoint of some problems and solutions encountered in existing commercial sulphide smelters. The smelting processes discussed; include updraught sintering, blast furnace and reverberatory smelting, and converting. Selected examples are given of methods implemented, and options available, to improve the productivity and efficiency of conventional smelting processes.

Jan 1, 1983

By B. W. Dunning

The Bureau of Mines investigated the concentration and distribution of precious metals in the various fractions produced from mechanical processing of obsolete military electronic scrap. Whole avionic units, printed circuit cards, and electrical connectors were processed and analyzed. Materials recovered included baghouse lights, wire bundles, mag-netics, and metal concentrates from eddy-current and high-tension sepa-ration. Higher value fractions were processed by a commercial toll refiner for recovery of gold and silver. Lower value fractions were analyzed by the Bureau. Three fractions, the lights, wire bundles, and metallics from high-tension separation, contained most of the precious metals. Depending on the type of scrap feed, these fractions represented 34 to 60 pct of the original sample weight. Collectively, they represented 68 to 97 pct and 75 to 98 pct of the contained gold and silver, respectively.

Jan 1, 1983

By Peter Fischer

A demonstration plant for QSL technology with a continuous through-put of up to 10 t/h concentrate has been in operation at the Berzelius smelter, Duisburg, Germany since early 1981. In the QSL-process, both oxidation and reduction steps are performed in a single horizontal long cylindrical reactor. In the present demo-reacior, 2.5 M diameter by 22 M long, these steps are separated by a low partition wall with an underflow opening, to prevent backmixing of slag. -Tests on a variety of concentrates, including high-lead Missouri-type material and lower grades, have shown recoveries and consumables indicating very attractive economics. Investment cost estimates further enhance the economic attractiveness. Environmental protection afforded by the QSL system is a major advantage. The process has proven its reliability and versatility and is now ready for commercialization. Continued test work, including smelting secondary lead materials, is planned.

Jan 1, 1983

By J. C. Yannopoulos

The quest for a continuous copper smelting and converting process, which has been going on for a long time, has not as yet reached its objective. The most recent efforts for the development of a continuous copper?making process started about two decades ago. Among the contending proposed processes, four have been piloted and three of them are currently in operation: the WORCRA process., the NORANDA process, the MITSUBISHI process, the OUTOKUMPU process. The WORCRA process, after some long pilot plant tests, failed to develop as an industrial process: The NORANDA process, as currently operating, is a smelting process and not a continuous copper?making reactor as initially conceived. The MITSUBISHI, although the only continuous process, has not been widely accepted. The OUTOKUMPU process can be applied only to a low iron concentrate feed and co?produces blister and high in copper slag. The thermodynamics of these "continuous" systems and the practical problems of their industrial application are reviewed and discussed. The achievement of efficient and inexpensive environmental control should' be the primary objective of any new process development. A review of the environmental problems of the copper industry indicates that the quest for a continuous smelting and converting furnace should be intensified.

Jan 1, 1983

By O. Llewellyn Jack

From September 1978 to December 1983, ESD Corporation (formerly a Division of FMC Corporation) undertook the development and testing of a bidirectional auger under contract with the U.S. Department of Energy. Underground testing began in August 1981 at Peabody Coal Company's Marissa Mine near Marissa, Illinois. The auger was developed to increase mine production and coal recovery without increasing land subsidence. It bored 4-foot-diameter by 10-foot-deep holes into pillars on 7-foot centers (each hole recovering 5 tons). All operating during this test was performed by maintenance personnel with the goal of finding ways to increase the machine potential. The maximum excavation rate achieved was 1.4 tons per minute. It was concluded that the concept of drilling short holes to extract coal from underground pillars without surface subsidence was practicable with a wheel mounted auger, but that more power was desirable for this mine, and that the hydraulically driven augering system that provided experimental versatility was not sufficiently reliable for production use.

Jan 1, 1983

The Minerals Data Source Directory is a compilation of descriptive information on the availability, content, and location of minerals data in the Federal Government. It is intended to assist Government personnel and the general public in locating and acquiring minerals information. Included in the Directory are descriptions of data bases, publications, information systems, and information offices containing data pertaining to ail aspects of mineral production, consumption, trade, and related information. These mineral data sources include the Federal agencies such as the Department of the Interior's Bureau of Mines and Geological Survey whose major mission is the collection and dissemination of mineral information. Also included are agencies such as the Departments of Agriculture, Commerce, Labor, State, Transportation, and Treasury, the Central Intelligence Agency, the Environ- mental Protection Agency, the Federal Reserve System, the interstate Commerce Commission, and the Securities and Exchange Commission, whose primary mission is the collection of data in nonmineral subject areas, but in which the mineral industry is a component.

Jan 1, 1983

By Keith D. Rosbury

The basic objective of this project was to determine the cost-effectiveness of dust control used on unpaved mine haul roads. Field testing was conducted at three surface coal mines (two in Wyoming, one in southern Illinois) for a total of 20 weeks. The highest control efficiency measured for a chemical dust suppressant, 82 percent, was for calcium chloride two weeks after application. Generally, however, the control efficiencies hovered in the 40 to 60 percent range over the first two weeks since application, and then decreased with time. After the fifth week, the limited number of data points suggest a control efficiency of less than 20 percent. Composite watering data were fairly uniform. Watering once per hour resulted in a TSP control efficiency of approximately 40 percent. Doubling that application rate increased the control effectiveness by about 15 percent to 55 percent. Chemical dust suppressants (primarily salts and lignons) can be shown to be more cost-effective than watering under some conditions. Data summaries and the analysis of data are contained in Volume I. Volume II contains basic data.

Jan 1, 1983