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By Charles Bruce

Although much has been said about the high cost of exploration, both at home and overseas, little of a specific nature has been published on actual finding costs, if indeed such data has been developed. This contrasts sharply with our sister industry, petroleum, where finding costs for oil and gas are available for virtually any country In the world. The reason is largely attributable to the genetic complexity of the hard minerals, as opposed to petroleum, and the increasing difficulties we are facing in the search for new orebodies. We have available to us data on the annual exploration budgets of most of the major mining companies which show them to run into the tens of millions of dollars. My co-panelist, Dr. Walthier, Director - Corporation Exploration, St. Joe Minerals Corporation, New York, NY, summed up the feelings of many explorationists in a recent keynote address when he stated, "I would not recommend a mineral exploration program of a general nature in North America budgeted at less than three to four million dollars annually, spread over four to five years -- or smaller amounts for more years". We have the fact that many of the major companies now prefer to "buy into" a new mineral discovery, particularly overseas, because of the high-risk and high-cost of exploration. Is there, then, a place for the small investor, let us say with a budget of under $200,000 per year and, if so, where and how? This paper is directed toward the above question and is based on experience gained while managing a limited international exploration program, on a shoestring, over the past three years.

Jan 1, 1976

If it had not been for the almost unbelievable adventures that came before and after, the last ten months of 19 15 would have been exciting enough for anyone. As it was they were a cheerful interlude. I spent most of the time on our Warren operations catching up on a lot of underground work and visiting Ajo every few weeks to see if my Chuquicamata visit might help solve the New Cornelia problem. While the difficulties were finally solved, at times they seemed almost hopeless. About all I could do to help was to make sure that the ore sent to the pilot plants represented the average ore that must be treated in the final 5000 tpd mill. Dr. Ricketts and John Greenway worked tirelessly with the best consulting advice they could obtain. Credit for the final success was due chiefly to their efforts. Since our old group had given up its "Merry Widow" home in Warren, a few of us got rooms in the company-built Cole Building over the Warren grocery store. This included Jim Lewis, Roy Mitchell, Steve Landon, Paul Stevens, and Hubert d'Autremont who came from Duluth to join our legal staff. Later we rented a small house two blocks from the Calumet and Arizona office. With the now flourishing country club only a 10-min walk away, and an electric car running to it every half hour or so, we were able to give parties in return for the hospitality of our friends. One of the most pleasant episodes came by luck a few days after I got back from Chile. Chester Congdon, a leading director in Calumet and Arizona, with his wife and their daughters, Elizabeth and Helen, spent a couple of days at the Greenway house before making an auto- mobile trip across the desert from Tucson to Ajo. At the same time I arranged to examine the small but rich Bush and Baxter copper mine a few miles from Tucson. At a party in Warren we found we would all be staying at the Santa Rita Hotel in Tucson, and I took my South

Jan 1, 1976

By William C. Cooley

A review was made of two Russian books and a chapter from a third book dealing with pipeline transport of coal. Emphasis was placed on hydrotransport of coarse coal in underground mines or surface pipelines. The books reviewed were: "Means of Increasing the Effectiveness of Hydrotransport," by V. N. Pokrovskaya (1972), "Parameters and Modes of Hydraulic Transport of Coal" by V. V. Traynis (1970), and the chapter "Calculations of Hydrotransport of Useful Minerals and Waste Rock" from the book "Hydromechanization of Opencast Workings" by G. A. Nurok (1970). All three are unique and useful additions to the world literature on hydrotransport. The Traynis book reveals the development and results of circular wheel stand tests to simulate hydrotransport in horizontal pipes, which is a potentially outstanding contribution to slurry pipeline technology. Graphical data and equations are presented which suggest that headlosses for coarse coal can be predicted with good accuracy for pipe sizes up to 14 inches in diameter. Wheel stands permit tests for pipe wear and lump degradation without recycling coal through pumps. Recommendations are made for wheel stand tests and for correlation of existing data.

Jan 1, 1976

By Joseph Sabatini

This report, covering the period January through December 1975, contains abstracts of articles concerning all phases of cost engineering and economics for chemicals processing, raining, and other mineral industries. The abstracts are collected from the following sources: 1. Chemical Engineering 2. Chemical Engineering Progress 3. Chemtech 4. Coal Arse 5. Coal Mining and Processing 6. Combustion 7. Drilling 8. Electrical World 9. Engineering and Mining Journal

Jan 1, 1976

By H. H. Kellogg

The Process Fuel Equivalent (PFE) for nine different flowsheets for production of anode copper from sulfide concentrates has been evaluated and compared for a set of uniform conditions and a "standard" concentrate analysis. The processes considered are: reverberatory smelting, (wet-charge and hot-calcine charge), electric furnace smelting, Outokumpu flash smelting (2 versions), mom flash smelting, Noranda Continuous Process (2 versions), and the Mitsubishi Continuous Process. The energy required for the numerous processes auxiliary to the principal smelting processes-¬roasting, drying, air compression, gas handling, dust collection, slag cleaning, acid manufacture, etc.--are separately evaluated and incor¬porated into the process comparisons. The factors in process design that lead to important energy savings are: use of fuel rather than electric energy; use of oil or coal rather than natural gas; maximum use of oxygen enrichment of the process air; drying of charge before smelting, or, even better, drying and preheating of charge by partial roasting in a fluid-bed; recovery of waste heat from all major hot process gases.

Jan 1, 1976

By Richard Q. Fox, Joe L. Pinson

This paper provides guidelines jo1• analyzing and selecting electric power demand controlled. Error calculations, load selections and timing criteria are identified as the three key functions which affect the suitability of a demand controller for any particular application. The advantages of simulating the demand control application on a computer are described, and applications of a demand controller to an iron ore concentrator and a copper refinery are shown. Finally, the paper studies the return on investment for a demand controller.

Jan 1, 1976

By J. Duncan Keppie

"Auriferous quartz veins occupy zones of dilation. Foldgenerated dilation zones are systematically distributed and are dependent upon the folding mechanism. Comparison of natural and theoretical folds indicates that different mechanisms operated in the Halifax and Goldenville formations.In the slates of the Halifax Formation, the folds are of similar type and internal strain is most intense in the limbs. This internal strain is probably accommodated with little or no dilation.In the meta-sandstone and slates of the Goldenville Formation, a combined flexural and tangential longitudinal strain mechanism, modified by pure strain, produced the folds. Tension fissures produced by this mechanism are: (a) saddle 1'eef veins in slate horizons, (b) veins normal to bedding in meta-sandstone layers in the fold hinges,(c) veins along faults in the cores of tight fold hinges and (d) zones of en- échelon veins in slate honzons in the limbs of folds. Because veins in fold hinges (a, b and c above) account for most of the gold production in the Meguma Group, other factors controlling the distribution and size of these veins are summarized below.1. The size of saddle reef veins is controlled by the curvature of the fold hinge. Thus, a Curvature Index greater than 600 degrees indicates a promising prospect, where"

Jan 1, 1976

A major domestic aluminum producer raised its price for primary aluminum metal from 44 cents per pound to 48 cents per pound, effective August 5, 1976. Other major producers have increased their list prices by equivalent amounts COAL: The strike which began July 19 in southern West Virginia enlarged by early August to involve approximately 80,000 miners in nine States. As of August 4, the aggregated loss of production is estimated to be 5.8 million tons. Reportedly, at this time, the railroads which serve the struck areas are feeling the largest impact with coke plants and electric utilities relying on stocks which are generally high.

Jan 1, 1976

By John R. Duda

The Bureau of Mines is developing estimates of capital investment, operating cost, and selling price for underground mines producing bituminous coal by various mining methods. This study estimates the required capital investment, operating costs, and selling prices for two hypothetical mines designed to produce 1.3 and 2.6 million tons per year (MM tpy)3 by using a longwall system in conjunction with a continuous-mining system. The coal properties being mined are assumed capable of sustaining a 20-year production period. Wages and union welfare payments used in this study are those in effect as of December 6, 1975, as set forth under the National Bituminous Coal Wage Agreement of 1974. Costs of materials and equipment are based on January 1976 indexes. Initial capital investment is $34.6 million for the 1.3-MM-tpy mine and $63.5 million for the 2.6-MM-tpy mine. Capital requirements, including deferred investments, were estimated to be $50.8 and $92.2 million, respectively. These figures translate into total capital investments of $38.51 and $34.91 per ton of annual production. Assuming a desired 15-percent discounted cash flow (DCF) rate of return, with Federal income taxes at 50 percent, the required selling prices would be $13.41 and $12.27 per ton for the 1.3- and 2.6 -MM- tpy mines.

Jan 1, 1976

By C. A. Grandison

The economic evolution from an agrarian society to an industrial and service-oriented economy is apparent to most students of history. The long-term trend is almost taken for granted, it does not require explanation — it is accepted as the nature of man to improve his standard of living. However, there are fluctuations around this trend line which have provoked a great deal of thought. The ability to understand and control these fluctuations would yield many benefits, it would eliminate economic waste and public hardship, and would no doubt make a few fortunes. I f it is not possible to control or eliminate these fluctuations, then a reasonable forecast of the tinting, rate of change and magnitude of the fluctuations would be invaluable to industry and government.

Jan 1, 1976

By T. T. Tomimatsu

This? Bureau of Mines paper discusses the corporate structure dynamics, methods of financing, and financial assessment approaches that should be utilized to evaluate the economic health of the coal industry. It suggests rates of return and other measures of corporate economies necessary to attract capital required to finance emerging coal demand, plus impact of coal sales to total revenues. The study illuminates the activities of 30 selected coal-producing companies, including their subsidiaries or affiliates, that were responsible for approximately 60 percent of the total U.S. production in 1974. The selected firms are not all primary coal producers; many of the larger producer's are classified by the financial institutions as petroleum, metal, and steel producers, public utilities, or chemical industries. The bituminous coal industry is highly competitive as to price, service, and quality of pronuct and is subject to competition from other noncoal energy sources. The top 15 bituminous coal-producing companies mined about 46.6 per-cent of the Nation's total production in 1974, and the balance of approximately 3,885 companies were responsible for the rest of the production. Thus, the U.S. bituminous coal industry is not an oligopoly. Today, about 65 percent of the Nation's total coal production is consumed by electric power utilities and 26 percent by steel, space heating, and other industries; the balance of 9 percent is exported.

Jan 1, 1976

Research personnel from the Bureau of Mines, representatives of the Mining Enforcement and Safety Administration (MESA), and members of the mining industry met with other Government and Industry representatives at three seminars held in Pittsburgh, Pa., November 4, 1975; St. Louis, Mo., November 6, 1975; and Denver, Colo., November L1, 1975, to discuss the results of Bureau-sponsored research on coal mine illumination. The program, aimed at developing suitable illumination systems fur the working; places of underground coal mines, covered hardware development and field evaluation and the status of proposed MESA standards and proposed MESA enforcement procedures. These proceedings contain the opening remarks to the seminars and eight technical presentations an various aspects of coal mine illumination.

Jan 1, 1976

By R. M. Quinlan

The coal industry in the United States has undergone significant economic changes during the past six years. The price of coal remained relatively constant from 1950 to 1969 (See Figures 1 and 2). Steam coal prices tripled and metallurgical coal prices doubled from 1969 to 1974. This price structure has created a new economic environment for coal preparation. Contributing factors to these price trends include: ? Coal Mine Health and Safety Act of 1969 ? Mid-East oil embargo of 1973 ? United Mine Workers of America contract agreements ? Productivity decrease (tons per man-day basis) ? Environmental Protection Agency regulations The increased value of coal justifies additional capital investment in cleaning facilities to optimize yield. Current trends include recovery of existing slurry ponds and recleaning of refuse. Coal preparation plant product yield and quality must be evaluated in terms of the amount of capital expended and cost of operation. Therefore, it is advantageous to optimize the plant product based on clean coal selling price and rate of return on investment.

Jan 1, 1976

By Donald J. Worth

When Eugene Bailey asked me to contribute to this session on "Canadian exploration - 1976", it took a little coaxing before he got me to agree. My immediate reaction was, what could i say about Canadian exploration that already had not been said a hundred times in the past few years; secondly, why include a banking person in such a discussion? Everyone knows banks only come into the picture after the discovery has been made and feasibility well established and validated. Rather than wrestle with these misgivings, I decided to take the easy way out and go on blind faith in Eugene - that is, he asked me so he must think that I could come up with some useful thoughts and at least touch upon some of the pros and cons of exploration in Canada. The object of the whole exploration exercise is to Find economic deposits, once they are found, one cannot really move them elsewhere to mine them. It follows, therefore, that we should really be speaking about the pros and cons of mining In Canada and my treatise will eventually lean in this direction. In any event and before getting down to the pros and cons, let us take a quick look at the history of mineral resource development in our country since the end of world war II. At that time, we were producing well under one billion dollars worth of mineral products including hydrocarbons.

Jan 1, 1976

By K. E. Laughery

The Nevada Barite industry has experienced a 277% growth over the last five years with a total production of 2,542,000 tons. Total production prior to 1970 approximates 2,700,000 tons dating back to 1907 Annual production, as can be seen in Table 1, has increased from 192,000 tons in 1971 to 723,000 tons in 1975. During this same period U.S production has increased from 825,000 tons to 1,056,000 tons. Nevada is now the leading producer with 69% of the market. The increase in the Nevada barite production is, of course, directly related to the increased demand for weight material coupled with the lack of other sources and the relative economic advantage of the Nevada barite, A significant tonnage of Nevada barite is utilized in the non-oil well market, principally at FMC's barite chemical plant at Modesto, California; however the growth has been in the oil well market.

Jan 1, 1976

By J. C. Agarwal

Slags produced by modern smelting furnaces contain copper values which are unacceptably high for discard. The electric arc furnace is employed commercially to clean copper from flash furnace slags but the addition of highly oxidized converter slags to an electric furnace has created operational problems. Highly oxidized Noranda Reactor slags have not been processed successfully in a pyrometallurgical process. These slags, which contain large concentrations of copper (5 to 10 per cent), are treated in slag concentrators (controlled cooling, crushing and milling, and flotation) which produce a copper concentrate that must be resmelted. Though commercially operable, it will be shown that the slag concentrator has important process and cost disadvantages as compared to a pyrometallurgical process. In this paper an economic comparison is made between a pyrometallurgical process and the slag concentrator. For the analysis, five hypothetical smelting plants are considered. Each plant treats 1200 tons of copper concentrate per day and produces 109,000 tons of copper annually. The plant configurations used in this study are:

Jan 1, 1976

By Thomas Gales

Longwall mining of thin shallow coal seams utilizing open pits is technically feasible. The thinnest coal seam which can be mined using available technology is 34 inches. The capital expenditure for a 1,000,000 ton per year operation is $15,494,000, and the projected rate of return is 5 percent. Similar statistics for a conventional area surface mine are S18,937,000 capital and 14 percent rate of return. The longwall surface mining method disturbs 63 acres of land per 1,000,000 tons, and the conventional area surface mine disturbs 198 acres A significant bibliography of the technology involved is included.

Jan 1, 1976

By G. W. Elger

This report describes pilot-plant studies and an economic evaluation of a process developed by the Federal Bureau of Mines, Albany Metallurgy Research Center, to produce synthetic rutile from a rock-type ilmenite concentrate. In this process, ilmenite blended with coke and lime is smelted in an electric arc furnace to separate most of the iron as salable pig iron and to form a titania-enriched slag of low iron content, which is treated with oxygen and titanium pyrophosphate. The titanium oxides are converted to crystalline rutile; the phosphate glass contains most of the associated impurities. The treated slag is ground and leached with sulfuric acid to liberate rutile crystals, which are concentrated by physical methods. In pilot testing conducted to obtain data for a cost estimation, a synthesized product containing about 88 wt-pct TiO2 and less than 2 pct FeO was extracted from a rock-type ilmenite concentrate containing about 45 wt-pct TiO2. The estimated fixed capital cost (on a mid-1975 basis) of a plant producing 500 tpd of synthetic rutile is $28,290,100. Based on 330 operating days per year, the estimated operating cost for this process is $351 per ton of synthetic rutile. The estimated selling price of synthetic rutile made from rock-type ilmenite is $344 per ton, based on a credit of $160 per ton of pig iron and a 20 pct interest rate of return on investment after taxes.

Jan 1, 1976

By G. W. Murrie

A geologic study of the Mary Lee Group of coalbeds in the Black Warrior coal basin was undertaken to examine coal stratigraphy and determine regional trends and extent of the coalbeds. The area investigated encompasses 835 square miles in Jefferson, Walker, and Tuscaloosa Counties, Ala. More than 700 core logs were used to construct a structure map, coal, interval, and overburden isopachs, and cross sections. There is evidence that structure affected sedimentation. Coalbed isopachs indicate the Mary Lee Group was deposited in fluvial-deltaic and low-lying coastal plain environments. The Mary Lee coalbed is the only coalbed which is continuous throughout the area, commonly with two benches which have a combined thickness of 2 to 12 feet. The Mary Lee coalbed changes rank in the basin from high-through medium-to low-volatile coal. The methane gas potential of the Mary Lee Group coals is estimated to be greater than 1 trillion cubic feet. There is an excellent correlation between the orientation of surface cleats with those measured underground in the Mary Lee coalbed. The face cleats roughly parallel the axes of the area's folds and trend northeast-southwest.

Jan 1, 1976

By James K. A. Harral

The growing national concern over energy has aroused a great deal of interest in the most efficient and least costly way to use our remaining fossil fuel reserves. A number of studies have been published which compare the overall thermal efficiency and cost of gas and electric energy. These studies have been carried out by a wide variety of organizations including Oak Ridge National Laboratory, The Rand Corporation, The Stanford Research Institute, and The Institute of Gas Technology. This paper is an attempt, by PGandE, a large combined gas and electric utility serving most of the northern and parts of central California, to compare the cost and efficiency of gas and electric energy for certain residential appliances using actual operating data and financial statistics for the year 1974, and thereby develop some guidelines for future energy developments utilizing these limited fossil resources. The appliances chosen for the study were kitchen ranges, clothes dryers, hot water and space heaters. These appliances were selected because they can be served with either gas or electricity and they account for approximately one-third of PGandE's total residential electric sales and nearly all of PGandE's residential gas sales.

Jan 1, 1976