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By W. E. Benton

Diatomite or diatomaceous earth is a siliceous sedimentary rock principally made up of the skeletal remains of the diatom, a microscopic, single-cell aquatic plant related to algae. The unique structure, chemical stability and physical properties are the major attributes of diatomite not met by other forms of silica. The production of diatomite was down in 1982 vs. 1981, reflecting the worldwide recession. The principal markets for diatomite products continue to be basically filtration and fillers. The outlook is for small but steady growth into the 1990s.

Jan 1, 1983

By W. J. Miles

Diatomaceous earth or diatomite is a sedimentary rock of organic origin that is composed principally of the silicious skeletal remains of diatoms. Diatoms are microscopic single cell acquatic plants that are related to algae. Diatoms first became abundant in the Cretaceous period from about 65 to 135 million years ago. Most of the commercial deposits are of Pliocene through recent age, and are younger than 35 million years. Diatoms are still abundant in present day lakes and seas. The living diatom is supported and protected by two half cell walls or valves united by a connecting band or girdle. These valves are composed of opaline silica extracted from the water in which the diatom lives. After death of the diatom, the silicious remains settle in the lake or sea and accumulate at variable rates approaching several millimeters per year for very active diatom colonies. This accumulation of silicious sediments, after decay of the organism, burial, and uplift, can result in the formation of diatomaceous earth deposits.

Jan 1, 1987

By Sidney Swensrud

ABOUT a year ago, I attempted in a general way to trace the origin and development of some of the marketing problems of the petroleum industry, and to describe certain trends which it then seemed possible to foresee. To summarize briefly, it was pointed out that the consumption of gasoline, after increasing for more than a decade at an almost unbelievable rate, was slowing down, but that the two factors which determined the supply of gasoline-namely, the production of crude oil and the percentage of gasoline derived therefrom-were tending steadily to mount. It was suggested that, while the increase in gasoline outlets began with and probably was justified at the start by the rapidly increasing demand, long after all reasonable requirements as to number of outlets had been met the number continued to increase-if anything, at a still more rapid rate-because by that time the overproduction of crude had begun to exert an impelling urge upon the owners of that crude to seek assured outlets for it in the form of gasoline. As more and more companies became integrated all the way from crude oil to marketing, there took place an ever-increasing competition among them, not only for the existing outlets but for new ones. The wide margin between wholesale cost and retail price, which is characteristic of the early stages of most new industries, persisted in the oil industry longer. than in most industries, for various reasons. The existence of that wide margin provided in large measure the means of attracting new outlets, for as the gallonage per outlet declined with the increasing number of outlets, competing companies simply offered the dealers a larger part of the total margin. The very nature of competition suggests that such a process would continue until practically all of the available margin was thus given away, and such was clearly the, tendency. It was a system that in turn produced increasing marketing expense per gallon on account of the -diluted gallonage per outlet; this increased expense might seem to have provided a justification for continuing wide margins. Economics, like its parent, nature, however, progresses by mutations and so began to throw out new types of marketers, in the form cf tank-car service stations, cut-price jobbers, and the like-heretics or

Jan 1, 1932

By Earl Rau

Introduction Will cogeneration be a major power source in the future? The location of electric power generating plants has changed. In 1900, more than 50% of electricity was generated by industrial plants. Since then, industrial plant generation of electricity greatly decreased to 17% in 1950 and to only 3% in 1980. Changing economics in electric power generating costs, though, may allow cogeneration to reverse this trend. Cogeneration has been defined as the simultaneous production of electric (mechanical) and thermal energy from a single energy source. Some applications are considered to be byproduct generation of electricity from industrial, thermal operations. Cogeneration is not new to the mining and minerals industry. Smelters and steel mills have used waste heat to generate electricity. Public Utilities Regulatory Policies Act of 1978 The potential for increased industrial cogeneration of electricity is related to the March 9, 1978 enactment of the Public Utility Regulatory Policies Act (PURPA). The US Supreme Court ruled that PURPA is constitutional. The court upheld requirements that utilities interconnect to cogenerators. It also ruled that 100% of avoided costs be used as the guideline for electricity sales by a qualifying facility (QF) to a utility. The state of New York established a floor price $0.06/kWh for electricity sales from a QF to a utility. It is obvious, then, that a cogenerator must first establish price and then become a qualifying facility in order to sell electricity to a utility. Proposed cogeneration plants The estimated industrial cogeneration potential for the years 1986 to 2000 is 9500 to 25,000 MW. Industries represented in this cogeneration estimate are pulp and paper, petroleum, chemicals, food, textiles, rubber, plastics, steel, lumber and wood, cement, glass, metal fabrication, and industrial parks. A cogeneration plant has been proposed for the Union Carbide chemical plant in Institute, WV. A steam turbine/generator would be installed to replace the pressure-reducing valve in the 2.7 MPa (400 psig) header. Scott Paper Co., Mobile, AL, proposed a cogeneration plant using a coal- and wood-fired boiler and a turbine/generator to produce process steam and electric power. A cogeneration system has been proposed for a large oil refining plant. A pulverized coal boiler would produce high-pressure steam to operate a turbine, generator. The exhaust steam from the turbine will go to the process and an existing turbine. Kansas City, MO's Armour meat-processing plant has proposed a cogeneration plant. This proposal is to use a natural gas or oil-fired, gas-driven turbine and a generator. The waste heat from the gas turbine would go to a heat recovery boiler for use as process heat. Dade County, FL is implementing a central energy system to supply electricity, air conditioning, and domestic hot water for five buildings in downtown Miami. The cogeneration system is to provide flexibility, to optimize fuel use efficiency while serving the variable thermal demands. Generation of electricity from municipal waste is not considered to be a cogeneration process but is covered by PURPA. Special considerations are provided for waste/electric power generation to encourage the development of these systems. ?

Jan 7, 1987

By P. E. Cavanagh

Introduction A comprehensive study of the economics of processes for smelting iron ores has been made by the Ontario Research Foundation on behalf of the Ontario Research Commission. This survey has included investigations of all processes in commercial use, and proposed processes which are still in the experimental stage. The two main objects of this work were to discover (l) whether any known processes would be particularly suited to present and future Canadian conditions, and (2) whether any new process would be of assistance in solving the present scrap shortage in Canada. The future prospects of the Canadian iron smelting industry have changed radically in the past ten years. For nearly twenty years before 1939 no iron ore was mined in Canada. The ore used was imported, mainly from the United States and Newfoundland. The economics of iron blast-furnace smelting always force the location of blast furnaces near the source of coal for making high-grade metallurgical coke, and near the market for iron and steel, rather than near the iron ore. Blast-furnace installations in Canada are confined to the north shores of the Great Lakes with ready access to United States coal and ore and the major Canadian markets, and to Nova Scotia near the coalfields of that Province. This distribution of primary smelting capacity naturally results in relatively high prices for iron and steel in the West, the North, and in Quebec.

Jan 1, 1948

By J. K. Brooke

Fluorine is a lively element in both its chemical and economic behavior. It was not isolated as an element until 1886 by Moissan. However, its principal source to this day, fluorspar, was known and its special merits recognized long before that time. Our own mining brother, Agricola, is credited with having named fluorite, the mineral name, in 1546 from the Latin, "fluere", to flow. It made things melt and was already being used as a flux. Because fluorspar has been found as a relatively common gangue mineral in metal ore veins, it has long attracted the attention of geological thinkers seeking to, explain the whys and wherefores of veins. Fluorine has been thought of as one of the principal mineralizers, holding metals in ascending vein solutions for deposition close enough to the eventual surface to be accessible for profitable mining.

Jan 1, 1964

By D. M. Davidson

The economics of geologic exploration have changed materially in the past decade primarily due to the change in three basic factors, namely, increased wages and salaries, increased cost of materials, and a greater complexity in methods of exploration. Following the general economic pattern over the past ten years, exploration costs, have, in general, increased, although there is one heartening exception. A comparative picture is complicated because of advances in techniques which ensue from the introduction of new methods and devices largely for aerial exploratory work, Some of these methods were either in their infancy or unknown before World War II. Geological exploration may well be considered as a form of applied research. True, it has peculiarities from this standpoint some advantageous, others disadvantageous, Some of the advantages lie in the fact that exploration success does not involve the production of a new product which necessitates advertising expense and marketing problems. In normal times there is a well established market for the fruits of a successful mineral find. The outstanding disadvantage of exploration lies in the enigma of deciding when to quit if the sought fop prize is elusive. In the search for buried treasure, man?s curiosity is apt to color his judgment. Even the so-called detached scientist may fall 'all too readily into the wishful thinking of the old- time prospector who is lured on by the thought that the next pull from the drill hole, or the next round from the face will reveal a bonanza. It involves mature judgment and experience to ascertain the stage in exploration when further work is not justified.

Jan 1, 1958

By P. Amponsah-Mensah

Dilution of ore has a major impact on economics of a mine. The magnitude of dilution depends on mining method, stope dimensions, reef and host rock quality, wall support and drilling accuracy. The main contributing factor is the presence of very weak graphitic shear band of varying thickness in and around the reef. The reef, at Obuasi, is generally steeply dipping and open stoping is the predominant mining method. The stability of the stope walls limits the stope dimensions. Various options for allowing larger stopes for higher productivity and limiting dilution are analysed. The most economic way is to reinforce the walls with systematic cablebolt supports. This option does not only add the support cost but also requires additional cost of access development. These conflicting requirements are continually being optimised at the mine for the economics of dilution control. La dilution du minerai à un impact majeure sur l’économie d’une mine. La quantité de matériel diluant le minerai dépend de la méthode d’extraction, de la dimension des chantiers d’abattage, de la qualité du filon et de la roche mère, du support des épontes et de la précision du forage de production. Le facteur principal qui contribue à la dilution est la présence d’étroites zones cisaillées qui contiennent du graphite ayant différentes épaisseurs à l’intérieur et autour du filon. Le filon, à Obuasi, est généralement à fort pendage et la méthode d’abattage principale est par chantier long-trous. La stabilité des épontes est le facteur qui détermine la dimension des chantiers d’abattage. Differentes options ont été analysées de façon à permettre de plus larges chantiers de manière à augmenter la productivité tout en limitant la dilution. Le moyen le plus économique est de renforcer les épontes avec des cables d’acier cimentés forés de façon systématiques. Cette option n’augmente pas seulement les coûts de support mais aussi les coûts de développement. Ces besoins contradictoires sont continuellement revisés à l’opération afin d’optimiser l’économique par le contrôle de la dilution. Verdünnung des Erzes hat eine spürbare Auswirkung auf die Ekonomie einer Grube. Die Größe der Verdünnung hängt von gewinnenmethode, von den Stopemaßen, von der Reef- und Wirtsfelsenqualität, von der Wandunterstützung und von der bohrengenauigkeit ab. Der beitragende Hauptfaktor ist das Vorhandensein einer sehr schwachen graphitic Scherbandes unterschiedlichen Stärke in und um der Reef. Der Reef, bei Obuasi, taucht im allgemeinen steil ab und geöffnete Aufstemmung ist die überwiegende gewinnenmethode. Die Stabilität der Wand begrenz die Stope grösse. Verschiedene Wahlen für das Erlauben der größeren Stopes für höhere Produktivität und das Begrenzen von Erzesverdünnung werden analysiert. Die ökonomischste Weise soll die Wände mit systematischen Kableankerbolzenunterstützungen verstärken. Diese Wahl addiert nicht nur die Kosten der Unterstützung aber erfordert auch zusätzliche Kosten fuer Zugangsentwicklung. Diese kontroversen Anforderungen werden fortwährend an der Grube analysiert um die Verdünnungkontrolle zu optimieren.

Jan 1, 2003

By Donald Towse

Geothermal energy can substitute for and compete with other fuels, but until now it has been used only in special situations where it costs much less than alternate fuels. Geothermal heat is expected to be developed where it can: (1) compete with alternate fuels, (2) replace scarce fuels, (3) be more environmentally acceptable, or (4) is especially adapted to local needs. Economic problems in development include the often high capital costs of wells and gathering systems and the long lead-times required for electric generating plants. The large investment and long payout times for large industrial uses adversely affect the economics.

Jan 1, 1977

By Thomas E. Shufflebarger

Glass sand is a virtually pure, fine- to medium-grained, quartz sand. It is produced in 25 states from a variety of chemically different source rocks. Deriving their raw material largely from either friable sandstones or loosely consolidated sands, 59 operations produced 14.9 million tons of melting sand in 1976. About one-third of this tonnage was obtained from the Oriskany and St. Peter Sandstones. Glass-sand prospects are discussed in this paper with regard to chemistry, environment, transportation, and costs. Demand for a quality product will range from 36 million to 46 million short tons in 1995.

Jan 1, 1978

By Wilfred M. Kenan

The relationship of various genetic classifications of graphite, their properties and general applications are reviewed. The classifications being amorphous, flake, high crystalline (vein) primary synthetic graphite and secondary graphite. The properties discussed are size, carbon, sulfur, ash content, general chemical analysis and degree of graphitization of each type. The major sources for natural and synthetic graphite powders are discussed in addition to factors which govern the cost as well as the supply. The economics of graphite are basically determined by the consumer and the end application. Graphite is a strategic mineral and is on the government stockpile list.

Jan 1, 1984

By Bruce Regensburg

As trucks become larger and larger, haul roads take on a more significant role in mining costs and economics. The School of Mining at the University of Alberta has compiled a design manual for haul roads using both empirical and theoretical information. One section of this manual deals with the economics of haul road construction. While many mines look only at the construction costs of haul roads, this paper looks at all associated parameters including construction costs, removal costs, timing, truck productivity and width implications. The authors demonstrate the method to determine the most appropriate quality of road for different road conditions and life spans.

May 1, 2001

This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By J. Dvorácek

Mine water poses a significant problem in lignite coal mining. The drainage of mine water is the fundamental prerequisite of mining operations. Under the legislation of the Czech Republic, mine water that discharges into surface watercourse is subject to the permission of the state administration body in the water management sector. The permission also stipulates the limits for mine water pollution. Therefore, mine water has to be purified prior to discharge. Although all mining companies operate mine water treatment plants, there is hardly any utilization of the final effluent. The high expenditure involved in the more sophisticated methods of mine water treatment has fuelled the search for the commercial utilization of the effluent.

Jan 1, 2012

By W. M. Myers

Certain minerals possess inherent color and other properties that make them suitable for the pigmentation of paints, mortar, plaster, concrete, face brick, and other materials. Their production is one of the most ancient of mineral industries and their use by primitive man is well known. These natural pigments have some economic factors in their favor, particularly wide geographic distribution, low cost of production, ease of preparation, chemical stability, and permanence in use so that they continue to form the basis of a small but useful industry. When used in paints such pigments act as a filler and supply body and opacity in addition to color. Natural mineral pigments are prepared for the market by the comparatively simple operations of washing, grinding, blending, and calcining. Any one, or all of these processes may be applied to a single pigment. The development of synthetic pigments and the use of by- product materials have introduced competition with the products of nature and are having a growing influence on the economic position of the mined minerals.

Jan 1, 1949

During the past five years there has been a transformation in the operating costs which apply to narrow vein mining. Mechanised methods including sublevel uphole retreat and narrow vein cut and fill are now proven. Other methods, such as vein mining by horizontal drilling from a raise platform are currently being tried in Australia.The important factors which affect the cost and appropriateness of each method include: ore continuity, the planarity of the wall contacts, relative hardness of ore and wall rocks and the dip bf the deposit.Drawing on current operating costs from a number of mines and on recent feasibility studies, a methodology for estimating the costs of narrow vein mining is presented. These costs are then placed in their economic context with regard to ore grade and mining rate.

Jan 1, 1993

By Hans E. Tausig

The economics of transporting minerals by sea in less than full cargo lots encompasses an analysis of production costs, sale and inventory calculations and a careful comparison of ocean freight costs all of which when pieced together will usually definitively indicate which of the ocean freight alternatives is the correct one for the economic factors involved. To illustrate: Let us assume that a production to be marketed yields 60,000 metric tons of copper concentrates over a twelve month period. Shipment is geographically viable through Vancouver, B.C. The production has been sold to a Japanese Smelter and the mine produces at a rate of 5,000 metric tons of concentrates per month. The copper has been sold CIF FO. The Seller has carefully investigated ocean freight rates Vancouver, B.C./Hibi, Japan and finds that he could obtain a twelve month freight contract at $15.00 per metric ton FIGS based on a loading/discharging speed of 4000/ 2000 metric tons per WWDSHEX (weather working day, Sundays and Holidays excluded) this freight rate being predicated on shipping in lots of minimum. 15,000 tons. A further freight investigation reveals that to ship at the same terms and conditions but in lots of 5,000 tons, and shipping each month (in accordance with the mine's actual production) would cost $20.00 per metric ton FIOS. The calculation that is now made is whether it is more desireable to pay a higher ocean freight by shipping in 5,000 ton lots or to pay the lower freight where here the ocean freight involves a difference of some $300,000.00.

Jan 1, 1979

By J. Dehais, W. A. Wallace

The pressures of urbanization are forcing producers of construction minerals either to transport their product greater distances or find new mineral sources. In areas with significant urban development near the coastal zone, offshore resources may prove to be an economically attractive alternative source. This paper addresses the economic viability of offshore mining of fine mineral aggregate. It proposes a model using a mathematical programming formulation based upon past research on both the onshore construction aggregate industry and the coal industry. The model is then used to assess offshore mining economics in the greater New York metropolitan area. Results show that in this region total consumer cost would be reduced by offshore mining of fine aggregate. In addition, increasing economies of scale could be realized by progressively larger mining operations. The distribution of these savings is also discussed.

Jan 1, 1982

By C. H. Lieb

ONE astounding fact in the production of petroleum is the comparatively recent realization by producers that flowing production is the cheapest crude produced. About 1910 or even later, operators actually endeavored to get a producing well to pumping as quickly as possible after completion. A well was not really considered to be completed until it was operating on the pump. Remarkable progress has been made since then. It was not until about 1920 that producers began to take a serious interest in pressures and to think a little about proper methods of handling oil wells. Pressure gauges were installed, and records of pressures maintained, which was quite an innovation. Desultory experiments were made with tubing of different sizes, as well as experiments with placing the bottom of the tubing string at different levels in the well. Probably the first important departure from customary procedure was about 1926, during the Seminole development, when gas lift

Jan 1, 1936

By C. Richard Tinsley

Like most minerals, coal is inherently a demand-limited commodity. The very sedimentary nature of its occurrence implies greater availability potential than demand. But this situation is overridden by economics among fuels, between coals, and within coal blends. Such considerations make coal forecasting a very hazardous profession indeed. THERMAL COAL If one thought that the lead times involved with a mining project were very long, one has obviously not been exposed to the planning process in the electric generation business - a process seriously confounded by shifts in load growth, environmental pressures, capital intensity, security of fuel sourcing, inter-fuel economics, and so on. But as a general rule, the near-term forecasts for thermal coal can reliably be based on a bottom-up, plant-by-plant analysis. Cement plant conversions can also be reasonably estimated next in order of reliability, although they have a much wider spectrum of coal qualities and fuel sources to choose from with a notably higher tolerance for sulfur and ash. Finally, industrial demand can be assembled from the estimates for conversions by pulp/paper plants, chemical plants, etc. The industrial sector is harder to estimate, since it may involve small boilers or dual-fired units. Assessing demand in the Pacific Rim is relatively a straightforward process in the near term because the major importing countries are all located on the Asian continent with either negligible or very minor (yet stable) indigenous coal production, (itself often operated on a subsidized basis). Furthermore, all imports are seaborne. These major importers are Japan, Korea, Taiwan, and Hong Kong with Thailand, Singapore, and Malaysia up-and-coming consumers. The suppliers to this market all have substantial reserves to back up decades of exports to these countries. Australia, the US, Canada, South Africa, China, and the USSR dominate the supply side. The second oil-shock of 1979/1980 has convinced the importers that reliance on oil can be expensive and eminently interruptible. Thus, they are determined to diversify away from oil' to nuclear and coal for generating electricity and for coal for other purposes where possible. This trend is seen to continue even in the face of the oil glut worldwide and oil-price reductions in early 1982. But the importers are also convinced that reliance on one coal source and, in particular, one infrastructure route for the coal chain from mine to consumer can be equally expensive and interruptible. Strikes in the US and Australia; excessive demurrage at certain ports; relegation of coal to a lower priority on multiple-use railroads in the USSR and China; and concern over escalation on high-infrastructure or high-freight coal chains are among the risks worrying the importers. As a consequence, Pacific Rim thermal coal purchases are being allocated among supplier nations, between ports, and within each country. An example of Japan's shift away from Australia and toward the US and Canada is shown in the estimates in Table 1. But the confidence of the import estimates deteriorates sharply beyond the plant conversion timetables and construction schedules in the near term. If part of the second generation of coal-fired power plants can handle lower-energy coals, the field of suppliers could widen to accept sizeable tonnages from Alaska, Wyoming, Alberta, or New Zealand resources. These supply sources generally have some infrastructure or freight advantage to compensate for their lower quality and to compete on a delivered energy-unit basis. These also offer diversification in sourcing. And the possibility of coal liquefaction in Japan further widens the sourcing network. A great number of Pacific Rim coal forecasts have been generated, especially for Japanese thermal-coal imports which are expected to grow strongly in the 1980's. Since the Japanese themselves have not yet settled their energy policy, the exact numbers are hard to call. Nevertheless, at 50 million tonnes of imports in 1990, Japan would consume 50-60% of the total Asian thermal coal imports as shown on Tables 2 and 6. The next most important consumers are the "island" nations of Korea, Taiwan, and Hong Kong (see Tables 3-5). All three are embarking on power plant developments usually with captive unloading facilities, capable of accepting more than 100,000-dwt vessels. Korea, with no-indigenous bituminous coal, is not especially enamoured with US coals, which are deemed too heavily loaded by freight and infrastructure costs -- up to 70% of the delivered price. Thermal coal contracts are presently split to Australia (70%) and to Canada (30%). Korea Electric Power Co. is already considering second-generation boilers capable of burning lower-quality coals than the present standard. Korea does burn domestic anthracite.

Jan 1, 1982