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By T. M. Gurr

The United States is the world's leading producer of phosphate rock. In 1975 according to the U. S. Bureau of Mines' statistics, 44.3 million tonnes (48.8 million short tons) of phosphate rock were produced in the United States', which is 40.6 percent of the world's production2. The major phosphate producing areas of the United States are located in Figure 1 and the production for 1975 is listed as follows: Million Million Short Tonnes Tons Florida and North Carolina 36.9 40.7 Western States 5.3 5.8 Tennessee 2.1 2.3 All of these areas produce phosphate from deposits which are sedimentary marine in origin. Occurrences of phosphate exist throughout the United States in numerous locations that are of both igneous and sedimentary origins. However, these other phosphate occurrences vary greatly in extent and economic significance. Georgia, South Carolina, California, Texas, Arkansas, Kansas, Iowa, Alabama, Kentucky and Virginia are but a few of the states in which phosphate is thought or known to

Jan 1, 1977

By L. E. Green

For shortwall mining to be profitable, the additional capital investment of about $1 million for shortwall roof supports must be offset by decreased total operating costs and/or increased coal production. The Bureau of Mines therefore conducted a demonstration project to compare shortwall and room-and-pillar mining. Daily two-shift production from the bureau of Mines-Beth-Elkhorn Corp. shortwall demonstration n project averaged 975 tons of raw coal, compared with 905 tons from a room-and-pillar unit operating undo r similar conditions. The estimated direct operating costs for the shortwall and room-and-pillar unite were $4.21 and $4.03 pier ton, respectively. The profitability of the shortwall system was found to depend not only on the increased depreciation cost of the powered roof supports and the decreased cost of supplies and materials but also on such factors as the fixed and variable indirect costs and the selling price of the coal. Shortwall mining was demonstrated to be a viable alternative to room-and-pillar mining.

Jan 1, 1977

By Hillary W. St. Clair

Mining activity began in colonial times with ironmaking operations scattered along the eastern seaboard. Iron furnaces and forges manufactured iron implements from bog iron ores using charcoal from the extensive forests as a fuel. Lead ores were mined in the Mississippi Valley and copper ores in the Lake Superior region. However, the real beginning of the American mining industry did not occur until the 19th century. The history of American mining is organized around three epochal events. The first was the discovery of gold in California in 1848, which marked the beginning of a period of apprenticeship in mining and metallurgical techniques. The second was the discovery of the fabulous Comstock Lode in western Nevada in 1859, which expanded mining throughout the Far West and led to large-scale underground mining and the development of smelting techniques for lead, silver, and copper ores. The third event was the building of a transcontinental rail-road system after the Civil War, which brought about the consolidation of the industry from a large number of independent mines, mills, and smelters into integrated operations run by large corporations. Thus developed the mining industry that today supplies the energy and critical materials for the great-est industrial complex the world has known.

Jan 1, 1977

By Gordon R. Haworth

Conditions affecting minerals investments are continuing to change at an increasing rate, and in this paper we will attempt to predict the course of mine financing in the future. We will first review the situation historically and then examine the problems and constraints that are now making the financing task more difficult. Suggested solutions are discussed, and a new method of financing a group of mining projects is hypothesized.

Jan 1, 1977

By R. C. Timberlake

In the past three years there has been a great amount of attention given to phosphates world wide, and in particular to the Florida Phosphate Industry. I would like to relate some of the most recent history of the industry and give you a personal outlook for the future. Phosphate rock has been produced in Florida since its discovery on the Peace River in the 1880's. Through 1976, approximately 720 million ST of rock had been mined from Florida reserves, and it is my opinion that there are at least 1.2 billion tons remaining which are consolidated, accessible and can reasonably be expected to be permitted for mining. Over half the 1.2 billion tons will be deeper, more scattered, leaner and will produce lower grade rock than the Bone Valley of Central Florida has tradition-ally produced. In 1973, '74, '75 and '76 the Florida Phosphate Industry produced 32.6, 34.0, 38.2 and (38.0) (P) million ST of phosphate rock respectively. This rock was produced by ten mining companies, Agrico, Borden, Brewster Phosphates, Gardinier, Grace, IMC, Mobil, Occidental, Swift, and USS Agri-Chem; mines are located -17 in Polk County, one in Hillsborough County and two in Hamilton County, Florida. Phosphate rock is used by local companies in Florida primarily to produce phosphoric acid from which DAP and TSP is manufactured. Florida acid producers use about 15 million STPY in acid plants in Florida, and another 7.5 million STPY is consumed by acid producers in plants on and near the Mississippi River. Somewhat

Jan 1, 1977

By G. Harper

"AbstractThe Suetut. Copper deposit, 230 miles northwest of Prince George, B.C., was discovered in August of 1971. Subsequent exploration has included 56,417 feet of surface diamond drilling in 139 holes. The deposit occur in gently dipping volcanic rocks of the Upper Triassic Takla Group, which out crops as rugged mountains.The general Mesozoic sequence comprises some 20,000 feet of green and red basaltic to andesitic rocks. The Lower Formation is characterized by subaqueous basalt, andesite and augite porphyry flows with interbedded breccias. They were rapidly deposited in tectonic depressions of limited extent and steep gradients. Facies changes are abundant. The Middle Formation. consists of volcaniclastic rocks made up of fragments from the underlying formation. Two cycles are discernible , both with basal turbiditic, tuffaceous sandstone and shale units overlain by massive, volcanic conglomerates exhibiting graded and cross bedding. A broader, shallower-water basin is indicated. The top of the uppermost unit was subaerially deposited. The Upper Formation is a variable sequence of volcanic sedimentary rocks. Detritus was supplied from a wide source area and included multiple reworked fragments of the lower formations and material from other rock groups known in the region. Zeolite facies metamorphism is recognized throughout: the entire sequence. Epidote is particularly abundant in the Middle Formation, demonstrating the results of metasomatism.The mineralized zone is approximately concordant with the strata over 100-200 feet of the Middle Formation succession . It lies just below the zone of transition from subaqueous to subaerial deposition in the top unit. Hematite, chalcocite, pyrite, bornite, chalcopyrite and native copper are disseminated throughout all sizes of lithic fragments and matrix. Concentration into the specific zone is believed to be due to upward leaching of copper during lowgrade metamorphic and metasomatic reaction. Precipitation occurred in the zone of hydration characterized by prehnite-pumpellyite below the oxidized subaerial rocks."

Jan 1, 1977

By R. D. Browns

In his Budget Speech on March 31, 1 977, the Honourable Donald S. Macdonald expressed concern about the financing of investments through new equity issues. He mentioned the need to render more attractive participation in the equity market by investors in all in come brackets. One of the measures introduced in the budget to accomplish this goal is the proposal to increase the dividend gross-up and tax credit in respect of most dividends received by an individual from Canadian companies. The following comments and tables serve to illustrate the impact of this particular proposal.

Jan 1, 1977

Chromium, a critical mineral for which the United States is largely dependent on foreign sources, is the subject of a new report just issued by the Interior Department's Bureau of Mines. The report is the first in a new series called "Mineral Commodity Profiles" (MCP's). Designed to give an updated review of important events affecting critical minerals, it also presents a comprehensive description of industry structure, supply-demand relationships, technology, and outlook for the future.

Jan 1, 1977

By Paul Wellman

The energy problem of the U. S; was emphasized by the oil embargo of late 1973 and early 1974 and it seemed for a time that the Federal Government, under pressure from the general public, might take some corrective action. However, this was not the case. With the gasoline lines gone and an apparent plentiful supply of petroleum products, public concern quickly dissipated., This country is more vulnerable to an oil embargo today than we were in 1973-1974 and this fact should be of concern to all our people. Since 1968, we have used oil and natural gas at a much more rapid rate than we have been able to find new domestic sources; thus, there is an increasing gap between domestic production and consumption and we have filled the gap with ever increasing oil' imports. These imports have increased at an alarming rate in the recent past, some 58 percent in 1976 compared with 1975. Imports are nearing 8 million barrels per day. Then, by applying some simple arithmetic, at $12 per barrel, the resulting trade deficit is $96 million per day or $35 billion per year. Obviously, this cannot be tolerated by our economy over a long period of time. Historically, we have shifted from one fuel to another as is shown in this slide. In 1850 about 90 percent of our fuel requirements came from direct combustion of wood, by 1900 we shifted to coal for 70 percent of our fuel, and now about 78 percent of fuel requirements comes from oil and natural gas. The difference is that the previous shifts were voluntary and the one facing us now is of necessity.

Jan 1, 1977

By Martin B. Zimmerman

It is becoming evident that traditional methods of econometric analysis are inadequate in estimating-the long-run supply of minerals. Econometrics is limited to extracting estimates from observations of the theory predicts that the least cost deposits will be exploited first.1 The estimation of parameters from past data then must lead to biased projections of the future. Mining conditions in the future will be worse than in the past and it is the impact of the future conditions on cost that we need to know. In this paper we present a methodology for dealing with this problem. We estimate a "cumulative cost" function that yields the long-run marginal cost of mining as a function of cumulative output produced over time.2 This is relatively easy to do for coal mining in the United States where exploration for new deposits is not a major factor in supply. The first step of the procedure relates cost to the rate of output and to the geological conditions of the mine. The second step combines geological information on remaining deposits with the cost function to yield the cumulative cost function. A central theme of both these steps is the interaction of economics with geology. The best deposits are selected first and in each step of the estimation allowance must be made for this fact. The problem of depletion is part of the general problem of structural change. The change through depletion in the nature of the exploitable mineral stock is only one factor that calls for an analysis sensitive to the changing circumstances of the industry. The factors impinging most heavily on the coal industry today are the strict environmental regulations legislated

Jan 1, 1977

By A. E. Lindquist

This Bureau of Mines publication identifies areas having sufficient coal reserves to support synthetic natural gas (SNG) development and summarizes those areas having the highest potential. Capital requirements, mining and coal cost factors, water availability, and coal-quality data pertinent to SNG production are presented. Evaluation of individual coal reserve blocks was based upon coal and water requirements of the Bureau of Mines Synthane coal gasification process.

Jan 1, 1977

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 Frank C. Stevens

The availability, cost and use of fuel and electricity for the cement industry is difficult to predict with a great degree of accuracy because the historical pattern of factors affecting energy was disrupted during the years 1972, 1973 and 1974. Forecasting is both an art and science and is based on .the premise that the best indicator of the future is the past. Statistical data is used to guide economists and businessmen in their predictions of the future. Even though the energy picture is changing, it is believed that electricity and fuel will be available for the cement industry in the foreseeable future, and this energy will be more costly in relation to the other items that are part of the manufacturing costs for portland cement.

Jan 1, 1977

By Paul R. Wieber

This paper describes the U. S. Energy Research and Development Administration's (ERDA) program to develop in situ coal conversion processes, especially gasification, he potential of this technology, the technical directions being explored, and the program strategy to carry the process concepts toward commercialization are emphasized. The geographic location of the U. S. coal resources and a market analysis are described. Commercially successful in situ coal processes could add over a trillion tons of coal to the U. S. coal reserves. The economics of these processes is compared with surface gasification independent studies show this process to be 25Z cheaper than surface gasification for Western coals. The major projects are briefly described. The Linked Vertical Well process is in the lost advanced stage and shows great promise. The last test produced a low-Btu gas averaging 171 Btu per standard cubic foot for average pro¬duction rates of 5.5 million standard cubic feet per day. The other projects are Packed Bed, Longwall Generator, and Steeply Dipping Beds.

Jan 1, 1977

By Thomas A. Phillips

An economic evaluation of the Bureau of Mines process for the separation of raw urban refuse into its metal, mineral, and energy components is presented. The process recovers ferrous metal, mixed nonferrous metals, aluminum, mixed-color glass cullet, and refuse-derived fuel products from raw refuse. Data for this evaluation were obtained from selected runs at the Bureau's pilot plant in Edmonston, Md. A cost estimate was prepared for a plant capable of processing 1,000 tons per day of raw urban refuse operating two shifts, 6 days per week. The fixed capital cost, based on second quarter 1976 equipment costs, is approximately $14.5 million excluding land and shipping containers. The estimated operating cost is approximately $8 per ton of refuse processed. This does not include credit for the products, transportation of the products, a tipping fee, or a dumping fee for wastes produced. No finance charges or taxes are included in the operating costs.

Jan 1, 1977

By L. A. Conley

This report, covering the period January through December 1976, contains abstracts of articles related to cost engineering and economics for chemical and petroleum plants, mining, and other mineral industries from the following periodicals: 1. Air Pollution Control Association Journal 2. Chemical Engineering 3. Chemical Engineering Journal 4. Chemtech 5. Coal Age 6. Coal Mining and Processing 7. Combustion 8. Drilling-DCW 9. Electrical World 10. Engineering and Mining Journal

Jan 1, 1977

By Enrique Levy

Central America is graduating this year into large scale mining with the start up of Inco's multi-million dollar nickel laterite processing plant in Guatemala. In the other extreme of the Isthmus in Panama Texas Gulf Sulphur is doing check diamond drilling and foundation test drilling at the Cerro Colorado copper porphyry. The higher price of gold and silver has spurred development and exploration of several small precious metal mines. The purpose of this presentation is to make a brief resumé of the most important mines operating in the area and a list of significant exploration projects. Also, tables will be shown to compare mining codes and taxes. Unfortunately these tables lack information on Panama. Before starting I like to express my appreciation to Kennecott Copper who permitted the use of some of the data compiled by the author on their behalf during the year 1975. Other persons which did not want to be named also have my gratitude.

Jan 1, 1977

By Lee M. Manna

This report summarizes the program to design, fabricate, install and preliminary test a pneumatic braking system for 10-ton mine haulage cars. Major arrangement drawings are reproduced, pneumatic schematics, parts list and actual developed costs. Recommendations as to system improvements are made.

Jan 1, 1977

By R. D. Brown

"AbstractOver the past five years, tax rates in the Canadian mining industry have skyrocketed upward across Canada, as both federal and provincial governments have sought to increase their share of mining revenues.However, the past few years have not only brought high tax rates to the industry, but also a number of important new federal and provincial tax incentives.In large part, these incentives ~ special credits or reduction in tax for carrying out specific exploration, processing or other activities - have helped to moderate the adverse effects of the higher tax rates and have provided inducements for exploration and processing activities which might not otherwise have been undertaken.However, the effectiveness of certain of these incentives can be questioned: our over-all tax structure now consists in large part of punitively high marginal rates with some extraordinarily generous but capricious tax reductions for specific activities and may not be in the best long-term interest of either the industry or the nation.A rational tax structure, with moderate and stable tax rates, together with reasonable incentives confined to activities specifically requiring them, could be a more effective spur to investment than the present tax and incentive jungleIntroductionIN THE YEARS since federal tax reform, the mining industry in Canada has faced a continued escalation in its tax burdens as federal and provincial governments have leapfrogged each other in imposing new and higher taxes on the industry. The result has been that marginal tax rates imposed on mining and processing activities throughout Canada have jumped to hitherto unparalleled levels."

Jan 1, 1977

By R. D. Brown

In his March 31, 1977 budget, Finance Minister Macdonald has attempted the delicate balancing act of stimulating the economy without reinforcing the inflationary pressures which Canada is continuing to experience. Several tax changes of benefit to the mining industry, as well as measures designed to encourage oil exploration in frontier areas, are among the budget proposals. Additional earned depletion of 66- 2 /3 %, which may be offset against income from any source, will be available on drilling costs in excess of $5 million incurred between March 31, 1977 and April 1, 1980 in connection with an exploratory well in Canada, including the continental shelf . Other changes include more favourable treatment of resource property dispositions, less restrictive rules r elating to "successor corporations" , increased capital-cost allowance on railway spur lines, the inclusion of certain production royalties in Canadian development expenses and the application of the lower "manufacturing and processing" tax rate to sulphur production. To encourage business capital spending, the 5% federal investment tax credit it to be extended an additional three years to mid 1980 and broadened to include spending on scientific research and development. The rate of credit will also be selectively increased on a regional basis, to 7.5 % in certain designated areas in Saskatchewan, Manitoba. Northern. Ontario and Quebec, and to 10% in the Atlantic provinces and the Gaspe.

Jan 1, 1977