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By Adrian C. Dorenfeld

The lesser developed countries (LDC's) may be classified into two categories: 1) oil producers, and 2) non-oil producers. The non-oil producing LDC's, as a class, are at present in very difficult financial straits. (1) Since the quadrupling of world market crude oil prices in 1972, an ever greater share of the LDC's export earnings have gone to pay for oil imports, in-stead of national reinvestment. The LDC's inter-national debts--much of it to pay for oil--have soared to record levels, with consequent limits for future credits. (1) Again, this inhibits future national investments, and there does not seem to be an end to the future increase of Organization of Petroleum Exporting Countries (OPEC) prices. Indeed, some of the economic difficulties in some metal markets--particularly the imbalance of production vs. markets for copper, can be traced indirectly to the OPEC cartels' heavy-handed impact on copper producing LDC's which must produce copper at any price to meet their oil bills. (2) Among the major oil importing LDC's are the Philippines and South Korea. 50th nations have substantial cement industries. The South Korean industry is geared for major export markets in the Far East. Both nations have ambitious plans for economic growth in order to accommodate burgeoning populations with ever increasing expectations for high standards of living. These plans had some success, more or less, until the high OPEC oil cartel charges had to be borne. Now, in common with all oil-deficit areas, the Philippines and South Korea are seeking lower cost sources of energy. Both countries have coal deposits. In the case of the Philippines, the reserves are in scattered, relatively small deposits. Most of the coal deposits are faulted, folded and, in general present formidable production problems for limited reserves. Nonetheless production has been on the order of about 70,000 to 150,000 tons per year in the last 30 years. Prior productions (1920-1941) varied between 9,000 Co 150,000 tons per year. (13)

Jan 1, 1978

By J. J. Brummer

The possibility of diamonds occurring in Canada was first raised by W. H. Hobbs in 1899, who concluded: "that the apex of the fan of diamond distribution probably lies somewhere in the strip of the territory bordering James Bay on the east." This was based on the occurrence of diamonds in surficial sediments at various locations south of the Great Lakes. There are two recorded discoveries of drift diamonds in Ontario: (a) the Peterborough Diamond, 33 carats in size, poorly documented and found sometime before 1920;and (b) the Jarvi Diamond, 0.255 carat, found during 1971 in Sheraton Township near Timmins . Both discoveries were in surficial sediments and their source(s) have not been located. During 1960, Selco Exploration Company Ltd. started a heavy-mineral sample program of river gravels in the James Bay Lowlands of Ontario. This was continued by Canadian Rock Company Ltd. (1962-1963) and the Ontario Division of Mines (1973). The surveys discovered the presence of kimberlite minerals in gravel samples from streams draining the Moose River Basin. A total of 53 pyrope grains, four magnesian ilmenites and one grain of chrome diopside were identified from 32 sample locations. A study of the distribution of these minerals suggested the kimberlite source rocks to be located along the north margin or within the Kapuskasing gravity "high" in the area immediately south of James Bay. The Jarvi Diamond, found on an esker east of Timmins, could well have originated from this area. During 1965, an esker was sampled by the Geological Survey of Canada, and the results attracted attention to the area south of Lake Abitibi. At 9 out of 34 sites sampled along the Munro esker, Lee recorded the presence of pyrope garnets and very minor chrome diopside.

Jan 1, 1978

By Dr. Jack M. Gillette

A system of models which simulate surface coal mining operations has been developed for use in mine planning and economic evaluations. Micromodels simulate individual mine operations for equipment selection and mine planning. Macromodels simulate all operations in the complete mine for economic evaluation of reserves. A cash flow analysis model makes a complete discounted cash flow analysis to deter-mine a required coal sales price or return on investment for evaluation of any mining project.

Jan 1, 1978

By R. D. Brown

"An adequate level of R & 0 is crucial to achieve gains in productivity and to strengthen Canada' s position in an increasingly competitive world ." So stated Finance Minister Jean Chretien in his April 10, 1978 budget speech, on announcing a new measure designed to increase the productivity of Canadian industry and to assist in the creation of new technology. The effect of the new measure, which permits an income tax deduction of 150% of certain research and development (R & D ) expenditures , can reduce the after-tax cost of a marginal dollar 's worth of such expenditures to as little as 20 cents . This article discusses the income tax treatment of R& D expenditures in general, and describes in particular the income tax incentives which relate to R& D.

Jan 1, 1978

For the sixth year in a row, the value of nonfuel mineral raw materials produced in the United States set a new record, reaching almost $17 billion in 1977. Data provided by the Bureau of Mines show that the 1977 value of domestic nonfuel mineral production exceeded the 1976 value, $16.7 billion, by 2 percent. The $17 billion worth of minerals was the basis for approximately $770 bill ion worth of processed materials of mineral origin. Output of metals decreased $360 mil lion in 1977, while that of nonmetals increased $670 million. Of the 22 metals produced, output of 12 increased, and the value of 13 increased. Among the 46 nonmetallic minerals produced, the quantity of 27 increased, and the value of 34 increased.

Jan 1, 1978

By N. A. White

Whereas the ultimate world supply of energy minerals-defined as fossil fuels and fissile materials - is controlled by geological factors, the actual supply at any particular time is controlled by economic feasibility, technological innovations and /or political decisions. This paper identifies and discusses the principal uncertainties surrounding the international availability of energy minerals from now until the end of the century. A brief comparison is also made between energy and non-energy minerals. Genuine shortage s of energy minerals are now of a very long-term nature, whereas artificial ones may occur at any time and have a serious effect on the world economy due to the dependence of most OECD countries on imports of energy mineral . This paper argues that events over the last decade, such as the demand for a New International Economic Order, the OPEC increase in crude oil prices and the growing international lobby on environmental issues especially relating to nuclear safety - will progressively lead to a major, long-lasting transformation of the energy scene world wide. This transformation will encompass demand, in terms of conservation and efficiency, the supply mix of the various energy minerals , the supply system and the structure of the different energy industries . It is already affecting the role of governments and reaching into the question of national sovereignty both of developed countries, such as the U.K., Norway and Australia, and the developing countries, thereby making energy minerals a key area of international relations.

Jan 1, 1978

By C. J. Cajka

Commodity agreements, trade liberalization, producer cartels, the New International Economic Order, price stabilization and access to supply are buzz words of the day. The international concern and dialogue on these concepts, often by a new breed of politically motivated experts, have generated intense interest in seeking an international solution to natural resource problems. While this momentum was maintained during the past year, the growing incidence of protectionist actions by several major nations has been eroding confidence in the global approach. The seriousness of current difficulties has created an urgent need for decisive action. At the same time, the limitations of the global approach have become more evident.

Jan 1, 1978

By Dale C. H. Nevison

One of the most intensive of material rivalries is the confrontation between zinc die castings and plastic injection moldings. Pressed hard by the plastics industry, zinc die casters are learning how to make parts with less material yet without sacrificing quality. The key to this new trend is the technique of Thin Wall die casting. The obvious benefits of Thin Wall are lighter weight and lower cost. Again, obviously, these are the very selling points that put plastics into many appliance and automotive parts formerly made of zinc. One of the factors that has been most conducive to the outstanding growth of plastics has been the increasingly prevalent concept that "adequate" properties are sufficient, especially if there are cost advantages. Most of modern design today is oriented around the reasonable life of a product, rather than indefinitely extended life. This is simply an acknowledgment of the existence of a design environment that pervades many areas, reflecting the life-cyclic desire for change. Too often, so-called "weight-saving" materials end up being very costly - not only in production, but in durability and dependability. Change for the sake of change usually doesn't effect a change for the better. In the majority of cases, the best bet is to design in traditional materials and minimize the material needed, while maximizing the efficiency of the production process. Component prices of products to be produced from either plastics or zinc must be studied in detail to determine which material will produce the lowest cost of manufacture. It is not uncommon for two parts, similar in appearance at a casual look, to have a considerable difference in energy requirements and production costs. Detailed cost estimates of the advantages of each material should therefore be prepared for zinc and plastic parts before the final design and material selection decisions are made.

Jan 1, 1978

By Richard H. Lindgren

I appreciate this opportunity to discuss with you OPIC's new policies designed to assist U.S. minerals companies in developing new sources of minerals overseas. A comparison of recent figures on U.S. investment in mineral exploration, development and production gives results which are remarkable --and disturbing. Through the 1960's the flow of U.S. foreign direct investment in mining and smelting in the developed and less developed countries were nearly equal. However, by 1973, roughly 80% of all exploration expenditures by mining companies was taking place in the developed countries and principally in the U.S., Canada and Australia. Clearly it is to the interests of both the developing countries and the United States to put these figures back in better balance. As you may be aware, the administration as a whole is examining systematically what can be done by government to reduce the disincentives and increase the incentives to mineral investment in the less developed countries --the LDCs. A subgroup of the National Advisory Council chaired by the Treasury Department has been formed to coordinate U. S. Government policy and program efforts relating to mineral and energy development in these countries. Among other matters, this subgroup will examine how public policies could positively influence the private investment decision-making process in the minerals industry.

Jan 1, 1978

By R. H. Bartlett

Hydrometallurgical processes for copper flotation concentrates avoid the S02 emission problems associated with smelting, but they require oxidation of copper to obtain solubilization during leaching. The resulting copper ions must be reduced to metal, which normally requires large amounts of energy or energy equivalent reagents such as hydrogen or iron. The conventional reduction method is electrowinning which is labor intensive and involves 35 to 40% of both the en-tire operating and capital cost of the better hydrometallurgical processes. Smeltermen are correct in criticizing the available hydrometallurgical processes for being more energy intensive than modern smelting processes. Clearly, there is considerable incentive to reduce the cost and energy required for reducing copper ions from solution. Furthermore, it is thermodynamically possible to do this using sulfur contained in the concentrate itself. In fact, the thermodynamic potential of oxidizing sulfur from S+4 to the S+6 state is greater than required to reduce cupric ion to metallic copper. (1) Realization of this potential in a practical process would significantly reduce the cost of hydrometallurgical processing of sulfide concentrates because sulfur would become a cost-free reducing agent. An apparently practical method is to use SO3 and HSO3 ions, obtained by ammonia scrubbing of SO2 from a concentrate roaster gas, to reduce leached copper to metal in an autoclave. This reduction step is the Jumau 1907 patent. (2) A series of steps including sulfite reduction constituting a crude flowsheet was suggested by Parker in 1976(3), but apparently little development work has been done by him, since he has been interested in new routes of refining the resulting copper powder. The purposes of the present paper are to elaborate on the Jumau-Parker thrust. Describe a detailed complete sulfite process flowsheet based on materials and energy balances, discuss the chemistry, and discuss further work that is required to develop this process. The results of the present paper are largely based on a synthesis of the steps using handbook chemistry. Process materials, utilities costs, and energy requirements are projected to be unusually low.

Jan 1, 1978

By Wi11iam I. Rau

In the recent past, there have been numerous projections of the capital requirements for additional mine and processing capacities required to meet projected non-Communist World demand for minerals during the next 15 years. A consensus judgment would place this currently at $14 billion per year, with the largest expenditures required for increases in aluminum and copper production. Until the early 1960's, internally-generated funds were used to finance nearly all of the large mining companies' capital requirements. Since that time, however, the enormous rise in capital costs per ton of capacity, accompanied by a relative stagnation in the financial condition of many of the major mining companies, have caused the industry to begin to rely on external sources for financing expansion, most notably, project financing from commercial banks and institutional lenders. Seven years ago, it was estimated that, in the five-year period 1972-1976,75% of the total capital requirements of $10 billion per year would come from internally-generated funds, with the balance to be provided by external sources. l There is little doubt that, in the coming decade, the percentage provided by external sources will increase. There should be little difficulty in attracting the necessary investment within the U.S., particularly in view of the expected continuation of companies in diverse industries seeking mineral investment opportunities. The more serious question lies in the availability of internal and external sources of funds for the expansion of mine and smelting capacity in the developing countries. Recently, R. F. Mikesell projected an average annual investment of $4.7 billion (in 1977 prices) over the 1977-1990 period would be required from foreign sources to expand metal producing capacity in developing countries. Mikesell concluded that external financing of mining projects in the developing world has averaged less than $1 billion per year over the past five years, thereby requiring more than a quadru1ling of this financing over the next decade.

Jan 1, 1978

By George H. Willis

In the second half of the nineteenth century, bimetallism progressively replaced by gold standard. After World War I and 1931-33 depression, gold mainly reserved for official international transactions and internal use restricted. Changes since 1971 have shrunk official international use of gold. International payments deficits and surpluses now financed by private and official credit, rarely by gold. Historical review covers evolution of: (1) internal and external private use, (2) internal official use, (3) external official use, (4) role in IMF and (5) use as unit of account.

Jan 1, 1978

By James R. Walpole

Less than 100 years ago the first major federal regulatory agency, the Interstate Commerce Commission was established (in 1887), and since that time literally hundreds of other federal agencies have been created. The regulations set by these agencies tremendously affect the individual citizens of this country as well as U.S. institutions. A few examples of the myriad agencies established include the Food and Drug Administration. (1907), the Bureau of Mines (1910), the Federal Reserve System (1913), the Federal Trade Commission (1914), the Tennessee Valley Authority (1933), the Securities and Exchange Commission (1934), the National Labor Relations Board (1935), the Small Business Administration (1953), the Federal Maritime Commission (1961), the Equal Employment Opportunity Commission (1965), the Farm Credit Administration (1971), etc., etc. Eight years ago, on December 2, 1970, still another federal agency was established by the reorganization plan of President Nixon -- the Environmental Protection Agency (EPA). The Administrator of EPA was given authority to regulate certain activities affecting the environ-ment, which were formerly within the jurisdiction of the Department of Interior, the Department of Health, Education and Welfare, the Federal Radiation Council, the Atomic Energy Commission, the Department of Agriculture, etc. Within weeks after the formation of this Agency, Congress began to enact legislation which would be administered by EPA. Over the last eight years a considerable number of such laws have been passed, a few of which include: the Clean Air Act (1970), the Noise Control Act (1972), the Federal Water Pollution Control Act (1972), the Marine Protection, Research, and Sanctuaries Act (1972), the Federal Insecticide, Fungicide and Rodenticide Act (1973), the Safe Drinking Water Act (1974), the Toxic Substances Control Act (1976), the Resource Conservation and Recovery Act (1976), the Clean Air Act Amendments of 1977, etc. It may be helpful to review, in a summary fashion, the major provisions in some of these statutes, and accompanying regulations, as they relate to water quality control in the mining industry. The Safe Drinking Water Act and the Federal Water Pollution Control Act contain provisions to be examined, as well as the Resource Conservation and Recovery Act and the Toxic Substances Control Act. One other law, the Surface Mining Control and Reclamation Act (1977), is not administered by EPA although it does contain many provisions related to environmental control, and it will also be dis-cussed because of its importance to the mining community.

Jan 1, 1978

By Joseph Kuti

Longwall mining is the term used for the underground extraction of a wide and deep panel of coal. Such a panel may be blocked out by one or more entries on either side ("head" and "tail") of a longwall face. If all the entries are pre-driven, the panel extraction is termed longwall retreat mining. With one exception, all the longwall faces in the United States are of this type. (1) prior to the general decline in the rates of production with Continuous Miners, the development of the multiple entries generally kept ahead of the longwall extraction rate. This is no longer the case: longwall extraction rates far exceed the rate of development. In addition to this problem, in newly established mines, the development of a haulage and bleeder system based on multiple entries results in a lead-time of three years or more before longwall mining can be applied. This is one reason why earlier projections and much of the optimism attached to longwall mining as a principal "savior" in the energy crisis should be viewed with some caution.

Jan 1, 1978

By Victor R. Eyzaguirre

Cerro Verde is one of several large porphyry-type copper deposits in Southern Peru. The copper occurs as primary sulphides, with a significant oxide capping. The exploitation of the deposit has been correspondingly divided into two stages, the first consisting of copper production from oxides, and the second from sulphides. Minero Peru successfully started the Stage I plant in June of 1977 with the first production of electrowon copper cathodes. This paper is essentially devoted to a description of the Stage I process, which can be summarized as follows: Ore is trucked to the primary crusher, where it is crushed to 225 mm and conveyed to a coarse ore stockpile. Ore withdrawn from the stockpile is secondary crushed to 65 mm, conveyed to a truck loadout bin, loaded into trucks and driven to the leaching pads. Ore is placed on the pads in lifts and sprayed with sulphuric acid solution to dissolve the copper. Copper-bearing solution forms a pond behind a dam at the lower end of each pad and is pumped from there to the solvent extraction plant. Copper is extracted from the leach solution into an organic phase and is then stripped from the organic phase to form a purified concentrated copper solution suitable for feed to electrowinning. In electrowinning, the copper is finally recovered as cathodes suitable for sale as refined copper.

Jan 1, 1978

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 Edwin B. Wilson

The purpose of the panel's examination of coal mining research and development is to explore how the various groups that make up this research community might work together more efficiently and be more productive. The community, as defined here, includes federal and state governments, coal producers, manufacturers, unions, universities, and industry sponsored research organizations. The framework chosen for these discussions consists of brief presentations by the panel members on their views of the proper role and function of the group they represent. The panel members were also asked to highlight the economic, technical and institutional constraints that affect the performance of research and development and the use of the results. Following these presentations, a number of prepared questions will be discussed by the panel, and audience participation is invited. These questions were given several weeks ago to the panel members for their study. Before proceeding with the panel member reports, a brief review of the importance of R&D to the coal mining industry would be helpful to setting the stage for a constructive dialogue. It is appropriate to begin this review by mentioning that there is complete agreement among the research community that the major goals are: Improve health and safety Protect the environment Increase capital and labor productivity Increase resource recovery Since the basic functions of the academic, industrial and government sectors are different, we should expect that the research and development objectives and priorities, roles and responsibilities under each major goal will be different for each research group. The differences do not represent problem areas. However, problems will arise if the objectives are not properly interfaced at the appropriate time. The consequences of railing to understand the need for integrated programs will be the classic result, best described by the phrase --"a technical success but a commercial failure."

Jan 1, 1978

By John F. Dougherty

Recently, there has been much debate as to the relevance of reporting financial results using the conventional accounting systems, which is based on historical costs, during a period of rapid inflation. In the following paragraphs , the symptoms, if not the causes, of inflation, its detrimental effect on the financial soundness of business in general and the financial reporting changes being advocated to overcome perceived weaknesses in the present financial reporting system in accounting for the effects of inflation will be reviewed. Finally, a course of action as a sound approach to the financial reporting problem will be recommended.

Jan 1, 1978

By Jr. Winters

The United States continues to be the largest producer and consumer of copper in the world. Table 1 on the following page shows several production statistics for 1974, the most recent year which the non-communist world copper industry might consider a good year, and for 1976 and 1977. In 1974 an estimated 24 percent of the non-communist world's newly mined copper was mined in the United States, and. 87 to 89 percent of that was from the western porphyry coppers. In 1976 U. S. new mine production was down to 22 percent of the non-communist world's newly mined copper, and the percentage of U. S. new mine production supplied by the porphyry coppers had risen to 89 to 91 percent. In 1977 the statistics remained the same as in 1976. U. S. porphyry copper production represented about 65 percent of U. S. refined copper consumption in 1974, rose to 75 percent in 1976, and dropped back to 61 percent in 1977 as imports of foreign copper into the United States began to swell.

Jan 1, 1978

By D. E. G. Maschmeyer

The operation of the pilot plant for the S-C Copper Process during 1976 has provided the basic data for the design of a commercial-scale plant. This paper introduces the commercial aspects of the S-C Copper Process through the presentation of a process flow diagram, a schematic flow diagram and basic design parameters for 75,000 tonnes per year (tpy) copper rod production from chalcopyrite concentrate. Basic operating requirements are outlined and a preliminary estimate of operating and capital costs for a Western Canadian location are summarized. The results have been compared with a modern smelter/electrorefinery to highlight the advantages and disadvantages of these two alternatives and to show why the new S-C Copper Process technology should be of interest to the copper industry.

Jan 1, 1978