wc/98/023 minerals information in developing countries: a ... · have a global outlook as important...
TRANSCRIPT
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DFID Department For International Development
British Geological Survey
TECHNICAL REPORT WC/98 / 23 Overseas Geology Series
MINERALS INFORMATION IN DEVELOPING COUNTRIES
G R Chapman BGS Minerals Group
This report is an output from a project funded by the UK Department for International Development (DFID) under the UK provision of technical assistance to developing countries. The views expressed are not necessarily those of the Department
DFID ilnsl;i,ficotkw : Subsector : Ceoscitmce Theme : G5. L?evelop methodsand systems of defining and maintaining geoscience information infrastructures I'roject title : Mneral information databases in developing countries Project reference. : R35M
Rihliuyriiphic rtfmmcr : G R Chapman 1998. Title of ppc" RGS Technical Report WC/98/23
Kepurds : minerals, information , commodities, std tistics, resources
Frotrt Cl>71l? iilrrsir~itiorr ; Athens Mine, Mvuma, Zimbabwe
0 NERC 1998
Keyworth, Nottingham, British Geological Survey, 1998
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MINERALS INFORMATION IN DEVELOPING COUNTRIES:
A MANUAL
Contents
1 Introduction
2 k m s and objectives
3 Minerals definitions
4 Production statistics
5 Reserves and resources classification
6 Trade statistics
7 Consumption assessment
8 Datasets of mining operations
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10 Case history I Zimbabwe
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12 References
Publication and dissemination of information
Case history I1 People’s Republic of China
Appendices
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2.
3 .
Symbols and units of measurement
Dictionary of mineral commodities (EnglFraEspPor)
Commodities, with trade classifications and descriptions
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MINERALS INFORMATION IN DEVELOPING COUNTRIES - A MANUAL
I . INTRODUCTION
Minerals, with agricultural products, are the basis for all human existence. However, by comparison with agriculture and other activities, such as manufacturing and service industries, the total number of people concerned with producing and processing minerals is small. As a consequence, the understanding of the industry is limited both in the world at large and, more importantly, among those responsible for regulating, sponsoring or developing the industry, whether they be government officials, providers of finance (aid agencies, banks, investors) or special interest pressure groups.
The British Geological Survey (BGS) and its progenitors have compiled and published statistics of world mineral production and trade since 1913, act as advisers to the British government and as contractors to the Statistical Ofice of the European Community and to aid agencies and governments throughout the developing world. This long and continuing experience has been used to compile this manual of best practice in handling minerals-related information in general, and mineral statistics in particular.
The manual was prepared with support from the UK Department for International Development (DFID, formerly the Overseas Development Administration) under the Department’s Technology Development and Research (TDR) programme. The TDR programme forms part of the UK provision of aid and technical assistance to developing countries Project R5 560, ‘Mineral Information databases in developing countries’ was designed to provide guidelines and to establish ‘best practice’ methods for handling minerals information and statistics. The ultimate aim was to provide essential support in the areas of economic planning, assistance and advice to industry, regulation and environmental matters
The collaboration in particular of the Ministry of Geology and Mineral Resources, People’s Republic of China, and of the Geological Survey of Zimbabwe, and many other institutions in that country, was vital to the execution of the project. These countries were willing collaborators and afforded the project leader many facilities to discuss minerals issues and problems in their two countries. The outcome of those. field visits has been incorporated into the study, both explicitly, in the relevant sections, and implicitly in the general recommendations and conclusions, which are intended to be generic and of wider application. The two countries have in common a wide range of indigenous mineral resources, but contrasting government and industrial structures. The geographic regions to which they are central are in the process of rapid social and industrial evolution and both have a global outlook as important suppliers of minerals to world markets.
2. AIMS AND OBJECTIVES
Experienced compilers of national statistics of minerals production, reserves, occurrences and so on, are to be found in national organisations such as geological surveys, mines departments, minerals bureaux and chambers of mines throughout the world. The manual
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does not presume to instruct such people in the details of the subject, but to propose common standards of practice that will facilitate the exchange, comparison and interaction of the data concerned. Where the facilities for compilation of mineral statistics do not exist, or are based on the rules of former command economies now moving towards free market structures, the manual will provide a template for the establishment of practices that will be compatible with those of counterparts throughout the world. It is expected that all users of the manual will also use the relevant sections of it as an aid towards improving communications with all those who have responsibilities in the field of minerals but little or no knowledge of its workings.
In addition to the responsibility of compiling national statistics, minerals bureaux etc. of many countries, both developing and developed, are also concerned with the international minerals markets and maintain datasets on international trade, prices and markets. The manual also presents data on the sources and the organisation of such material.
A fundamental assumption of the manual is that its chief utility will be to assist those who have the task of organising, compiling and, probably, simplifying for the purposes of national or international overview, the mass of technical and commercial data provided by mining and processing companies and enterprises. Throughout, the user will find an emphasis on ways to present accurate and comprehensible synopses of the frequently complicated raw data available, and to avoid the many pitfalls that can otherwise trap the uninformed.
The manual incorporates, or presents as discrete sections, the latest international recommendations and rules on trade classifications and reserve definitions.
3. MINERALS: DEFINITIONS
A branching classification of economic minerals is shown in figure 1. The major groups of economic minerals are as follows:
Non-fuel minerals:
Metallic minerals: minerals from which a metal, either in pure or alloyed form, is commonly extracted for commercialhndustrial use. These minerals are also the source of those compounds of metals that have an industrial use in their own right In some cases, e.g. titanium, the non-metallic use is much greater, in terms of mass, than the use of the metal.
Industrial minerals: minerals that are normally raised, marketed and used for the fbndamental physico-chemical properties of the mineral as it occurs. Beneficiation in the form of crushing, grinding and separation may be undertaken, but the specification of the mineral as raised is far more important than in the case of metallic minerals. They can be fbrther subdivided into:
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Non-construction minerals: non-metallic minerals that are used for their physical and chemical properties in virtually every type of manufacture, although, by definition, the ‘construction minerals’ (see below) are excluded from this category. The term ‘industrial minerals’ is sometimes used for this sub-category alone.
Construction minerals: non-metallic minerals whose chief use is in the construction industry, that is, in concrete for roads and other engineering structures, and in buildings. Typically, these minerals have a relatively low price and hence a limited marketing radius. They are also known as ‘bulk minerals’.
Fuel minerals:
Fossil fuels: This category includes coal, lignite and related minerals, oil and related minerals such as oil shale, and natural gas. They are also collectively known as ‘hydrocarbons’ and ‘energy minerals’. In addition to their dominant use as the basis for fuels these minerals also form the feedstock for non-fuel manufactured materials such as polymers (‘plastics’), synthetic fibre and rubber, lubricants, waxes, and asphalt.
Nuclear fuels: Processed uranium metal is the sole commercial primary raw material basis for nuclear reactors and hence for nuclear weapons - but depleted uranium by- product is also used for its high specific gravity.
Any compilation of data on minerals involves a decision as to whether the minerals should be grouped according to the above or similar categories, or simply listed in alphabetical order, The outcome must depend on the prospective user of the data: the inclination of the mineral expert is usually to group the minerals and this may be the system preferred by expert users. The non-specialist user may not be sufficiently well informed to know in which category to search and would appreciate the alphabetic list.
Commodities
Use of the term ‘minerals’ in an economic context does not necessarily accord with the scientific definition of mineral species. For example ‘limestone’ and ‘asbestos’ are economic minerals but are not mineral species in the strict sense. To make this distinction obvious the terms ‘commodity’ and ‘mineral commodity’ are often used, for example in the title of the well-known publication ‘Mineral Commodity Summaries ’ (US Geological Survey and Bureau of Mines, 1996). A commodity is defined (Allen, 1990) as ‘a thing that can be bought and sold’. Any list of ‘mineral commodities’ may include any or all of three distinct meanings:
Minerals or rocks, including liquids and gases and native metals, that occur in nature and are commodities in their own right. Example: bauxite.
Compounds and metals that are commodities produced from minerals by processing, Example: alumina, aluminium metal.
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0 Elements, the names of which are commonly used as generic commodity names, meaning all commercial forms of that element. e.g. ‘aluminium’, comprising bauxite, alumina, aluminium metal (plus alloys) and other aluminium compounds.
To ampli@ the third category, above: in the case of most metals the element name used in this way will comprise different forms that may be stages in the processing chain, or different marketable products, or both. Where the different forms are radically different in their extraction processes, uses and markets it may not be helpfbl to use the element name as an overall heading, either in statistical compilations or in commentaries, e.g. the separate treatment of ‘magnesium’ and ‘magnesite’ by World Mineral Statistics (British Geological Survey, 1996) and Metals and Minerals Annual Review (Mining Journal, 1996).
4. PRODUCTION STATISTICS
Mine production
Mine production is the first and most fhdamental measure of mineral production. Production statistics recorded under this heading will include material raised from mines, quarries, production wells (oil and gas), waste tips, seawater or brines. The most important constraint is that it should represent the first point of measurement in the sequence from rock etc. in the ground to marketable commodity. It has been proposed (Humphreys, 1983) that ‘mine production’ should refer solely to measurement of the3rst marketable form o f a mineral. This is in general a reasonable proposal and appears to have the support of commercial operators.
Example: the cobalt contained in copper/cobalt ore raised in Zaire in any one period is much greater than the amount of cobalt recovered in concentrate. From a market point of view it is more sensible to record the cobalt-in-concentrate as ‘mine production’ - it is not marketed in this form but could be, whereas the crude unbenefrciated ore could not.
It is preferable that both figures (metal-in-ore and metal-in-concentrate) should be recorded since the first figure determines the depletion of reserves in the ground.
Where a mineral goes through several stages of processing before actually being marketed the choice of stage to record as ‘production’ may not be critical but care must be taken to avoid double counting the same material at successive stages of processing.
Example: Chromite production is often recorded under the headings: ‘lumpy or ‘direct shipping’ ore, concentrate and pelletised ore. It is important to know whether these quantities are discrete components of total production or whether any is derivedfiom another.
The recording of ‘shipments’ of material, whether by land or sea, as production should be avoided. The figure needed to establish the supply/demand position is actual production, that is, what was available to the market, rather than what was released to the market.
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Metallic minerals production
Ores and concentrates
The first marketable form in the case of most metals is ore or concentrate. In the case of those metals that occur in ores of relatively high grade, e.g. iron, manganese, aluminium the product will be ore - probably in screened and graded form. In the case of aluminium it is important to indicate whether the tonnage recorded is that of wet or dried ore. The preferred figure is that for dry ore. In the case of this group of ores it is normal to record gross tonnage rather than metal content but statistics compilers normally attempt to indicate the typical grade(s) of ores from different sources.
Certain ores may have prices quoted ‘per metric tonne unit (mtu) ’. A metric tonne unit is simply one percent of a tonne, i.e.1Okg. The price of a tonne of ore is the quoted price per metric tonne unit multiplied by the analysed percentage of metal in the ore. This is done to avoid altering the sale contract if the ore grade differs slightly from that quoted by the vendor.
For the majority of the major base metals the first marketable form is concentrate, that is, material that is the result of concentrating or beneficiating the crude ore to give a product with an enhanced content of metalliferous mineral, so facilitating both smelting, or other treatment, and transport. The cobalt example given above is typical of the base metals. material marketed is almost always concentrate and not ore. An exception is the production and subsequent shipping of lateritic nickel ore with the grade of less than 2% Ni fiom New Caledonia and Indonesia. As with ore, if gross tonnage of concentrate is recorded it is necessary to know the grade, that is, the tonnage of contained metal as determined by chemical analysis. ln smelting, or other treatment of concentrate to give metal, processing losses will occur so that the ultimate production of metal will reflect the recoverable metal content of the concentrate, rather than the total content. In national statistics it is usual simply to quote metal content of concentrate or contained metal, but, if available. the figure for recoverable metal is the truest measure of production in a concentrate.
Matte and other intermediate material
Matte and other intermediate products of metallurgy such as oxide, oxide sinter, roasted concentrate, synthetic sulphide will be reported by producers and care has to be taken to avoid double counting if the ultimate aim is to measure production of processed material within a particular geographic/ time envelope, e.g. national production per year.
Many minor metals are produced chiefly as by products of major metals and are only recovered at a late stage in processing - usually at the refining stage. In these cases the refinery production is taken as a proxy for mine production
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Non-metallic minerals production
In the majority of non-metallic minerals it is not customary, or possible to reduce them statistically to a content of a particular component (element or compound). Thus the gross tonnage of first marketable form is the measure of mine production. In many minerals a range of specifications is recognized, corresponding to what may be a wide variety of different uses but for the purposes of statistical compilation it is acceptable to add these together. In certain cases it is, however desirable to distinguish as far as possible between production for different uses.
Example: the production of limestone for (i) crushed-rock aggregate (ii) the production of cement (iii) chemical and other uses.
Example: production offluorspar for the steel industry (‘metspar 7 or for hydrofluoric acid production (‘acidpar 7 .
The production of a mineral commodity from hndamentally different sources should also be distinguished, particularly where by-products are concerned, or where production is wholly synthetic and not initially based on natural minerals.
Example: sulphur from (I) primary Frasch process operations (id metal sulphide mining and treatment (iii) oil and gas extraction and treatment.
Example: diamonds as natural or synthetic stones.
In the cases of certain minerals they may be treated in the same way as many metals and reduced to their analytical content of either element or compound, although the gross tonnage should also be reported.
Examples: potassium salts (K20 content), phosphate rock (P205 content), fluorspar (CaF2 content).
Metal production
There is commonly a sequence of marketable materials involved in the production of a metal.
Example: nickel metal and compoundr are produced by differing pyrometallurgical, hydrometallurgical and vapometallurgical processes and as a consequence a large number of dflferent forms are marketed, including concentrate, oxide sinter, matte, synthetic sulphide, oxide, cathode, pellets and a variey of shapes such as rondelles.
All these forms should be recorded but the avoidance of double-counting is a major problem. This is exacerbated where, as in the case of nickel, semi-processed forms are produced in one country and converted to metal in another.
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Another problem for the economic analyst is the determination of the metal content of the various forms produced, which may also vary significantly from one producer to another. The production of marketable metal, normally in a highly-refined state, marks the final ‘downstream’ end of the processing route undergone by metalliferous minerals. This is normally the form in which it is purchased by manufacturing industry and which forms the basis for international pricing. This form is described in such terms as umurought (unworked) metal. Identification of this stage is more difficult than in the past, particularly in the steel industry, due to the introduction of vertically-integrated operations that consume semi- processed material or unrefined metal and produce semi-fabrications (shaped metal) rather than simple ingots or bars.
A lloys
Metal alloys fall into two main groups
Ferro-alloys are used solely as additives in the making of steel and iron. They contain iron as a major, usually dominant, constituent and another metal which is required to be added to the iron or steel melt, e.g. vanadium.
Non-ferrous alloys are usually, but not invariably, incorporated in manufactures as constituted, e.g. brass (copper-zinc) in plumbing components or antimonial lead in batteries. The exceptions are master alloys which are binary alloys used as carriers for the introduction of a particular metal into a melt in order to attain the final desired composition. (In this sense all ferro-alloys are also master alloys but the term is not used in the ferro-alloy context).
The ferro-alloys present less of a problem to the statistician since many of them are produced more or less directly from ores Gferro-nickel, ferro-chrome, ferro--manganese) or by other routes that do not involve individual refined metals. All that is required is to know the technical specification of the alloy, that is, its analysed composition, which normally falls into one of a number of recognised standards.
The non-ferrous alloys have to be handled statistically with more care for two reasons: the majority are prepared either from refined metals or from scrap. In the first case double- counting is again the problem to be avoided and in the second there are a number of problems discussed in the following section.
Scrap
Non-metallic minerals may be recycled in manufactured form, e.g. glass, but scrap generation is typically a feature of the production and use of metals.
In recording metal production it is important to distinguish between production from primary materials, i.e. materials that are being transformed into metal for the first time, and production from seconhry materials - or scrap. This distinction is made both because of purchasers’ concern with specifications and to monitor the effectiveness of recycling and its implications for environmental matters, conservation of materials and sources of supply.
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Scrap falls into two fundamental categories:
Old scrap (‘obsolete scrap ’, ‘post-consumer scrap’) This is material that has been incorporated in manufactures, used and finally discarded. Its life-cycle may vary from months (e.g. in batteries) to decades (in buildings). The completeness of its recovery is decided by the costs of collection, transport and sorting and re-processing in relation to the costs of primary production and the prevailing price of the metal concerned.
New scrap (includes ‘arisings’, ‘in-house scrap I, and ‘run-around scrap ’) This material has never been incorporated in manufactures and used. The bulk of it is generated in manufacturing and semi-manufacturing processes as stampings, turnings, off-cuts, swarf etc. Some of it is re-used in-house, i.e. it does not enter trade, some is sold to dealers for re-sale to metal producers.
The categories of base-metal scrap normally reported are ‘production of secondary refined’ and ‘consumption of scrap’ (for direct use). Typically, old scrap is re-refined, since during its useful lifetime it will have been contaminated with other materials - in some cases the metal is not even separated from the manufacture in which it occurs before re-melting. Equally, new scrap - and especially alloy scrap - is normally clean enough to be remelted and to go into direct use without hrther refining. Unfortunately these correlations are far from being exact: some old scrap is clean enough to go for direct use and some new scrap becomes contaminated, e.g. with oil, in processing, so the ‘secondary refined’ and ‘scrap consumption’ categories do not normally indicate how much metal is being genuinely recycled aRer use.
Only the weight of ‘old scrap ’ being consumed in any time period shows what contribution recycling is mahng to the output of metal and this tonnage is what should be recorded wherever possible.
Chemicals
The dividing line between chemicals as manufactures and chemicals as primary products, e.g. from metal refineries etc. is blurred. Certain materials tend to be reported in ‘chemical’ categories when they are essentially intermediate products. of mineral processing. Examples are alumina, vanadium pentoxide, molybdenum oxides and ammonium paratungstate.
Chemicals produced directly from ores and concentrates, e.g. chromic oxide from chromite are normally regarded as manufactures, although being only one processing step removed from ores and concentrates, they are oRen listed among mineral statistics.
Chemicals produced as co-products or by-products in metal refineries, however, should be counted with the output of that refinery in order to make sense of net material flows, e.g. cobalt salts from a nickel refinery that uses cobaltiferous feedstock.
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Identified resources
5. RESERVES AND RESOURCES CLASSIFICATION
Undiscovered resources
Internationally-agreed definitions for reserves and resources are vital for the confidence of the business community and for public planning policies for land use regulation and resource management. The base definitions are:
Mineral resource: an in situ accumulation or occurrence of minerals or bodies of rock in or on the earth’s crust in such form and quantity that they are, or may become, of economic interest as a basis for the extraction of a commodity.
Mineral reserve: that part of a resource on which appropriate assessments have been carried out to demonstrate that it could justify extraction of mineral(s) under realistically assumed technical and economic conditions.
Demonstrated 1 Measured I Indicated 1 Inferred I Hypothetical 1 Speculative I
Margin a I
. . . . . . + I Su b-economic
, Geological information increases
Figure 2 The ‘McKelvey BOX’ (Slightly modified, after US Geological Survey, 1980)
Mis-use of the term ‘reserves’ led to an attempt by the United Nations in 1979 to erect a new scheme for subdividing ‘resources’ (Schanz, 1980). This was broadly compatible with the USGS scheme but was illustrated by an hierarchical ‘tree’ instead of a box. It was never widely accepted, although it was used for the series of USGS Circulars (930B) that published the summary reports (DeYoung et. al., 1984) of the International Strategic Minerals Inventory (ISM).
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Continued dissatisfaction within the world financial community with the definition of mineral reserves has led in the past ten years to firther attempts by mining institutions in a number of English-speaking countries, represented by the Council for Mining and Metallurgical Institutions (CMMI), to develop a more tightly-worded set of definitions (Miskelly, 1994, Riddler, 1995). At the same time the United Nations-Economic Commission for Europe (UN-ECE) has made a further attempt to find an international framework for reservehesource definitions (United Nations, 1997). In summary the CMMI initiative closely follows the original USGSLJSBM proposals and perpetuates many of the terms used in those proposals and uses the same parameters of ‘geological knowledge’ and ‘economic viability’ (figure 3). In essence the CMMI system is more appropriate to the understanding of investors, bankers, shareholders etc. The UN-ECE system was based on activities (geological and techno-economic) and was designed to explain the stages by which a mineral resource is proved (or not) to be mineable and hence, by monitoring the work done (feasibility studies etc.), to facilitate accurate inventories of mineral assets and their status
Constructive dialogue between the two organisations over the past three years has led to the production by the UN-ECE of a three-dimensional classification system that combines the essential .features of both systems. Both systems originally shared a ‘geological information ’ axis but in the lJN system this was combined with a yeasibility axis ’ whereas in the C ’ M I system the second parameters was an ‘economic axis ’. The new (JN-hX’E three-dimensional proposal has three axes that defi’ne rectangular three-dimensional cells. Each cell has a unique three-frgure designation in which the $rst number refers to the economic (E) axis, the second to the feasibility (F) axis and the third to the geological (G) axis. Thus proved reserves are represented by the two cells [ I I I ] and [121], depending on whether they have been subject to a full feasibility study and mining report (F==I), or merely a prefeasibilty study (F=2). An ‘indicated mineral resource ’ is designated (332 J since it is only ‘intrinsically economic’ and has only undergone ‘geological study’ at the stage of ‘general exploration’ (E=3, F=3, G=2) and so on. The reader should refer to the lJN publication concerned (ILNECE, I99 7) for the full details.
More simply, the original USGS/USBM system, slightly modified, can be used in conjunction with strict definitions of the ‘reserve’ categories. This is, in effect, exactly what the CMMI has done and the CMMl diagram (figure 3) is virtually the McKelvey box in a different orientation.
Necessity for a standard international classifi’cution
A standard scheme will enhance communications between international mineral development companies and national and local authorities. Improvements in the comparability of different systems of mineral reserve classification will aid understanding of valuable, economically attractive mineral assets, reduce risk to investors, thus making investment appear more secure and attractive. In many cases developing countries have no national scheme and the provision of mineral resource data to an international standard is important for speeding the process of attracting inward investment for mineral exploration and development programmes in these countries.
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EXPLORATION INFORMATION
MINERAL RESOURCES (in situ)
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INFERRED MINERAL RESOURCES
Increasing level of geological data, knowledge and confidence
INDICATED MINERAL RESOURCES
MEASURED MINERAL RESOURCES
Transfer occurs upon consideration of economic, mining, metallurgical, marketing, legal, environmental, social and other factors
Figure 3 Proposed CMMI nomenclature and definitions for reserves and resources
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A standard international scheme also provides a consistent basis for the collection and comparison of international data on mineral resource potential, the assessment of known deposits and mineral occurrences, mineral endowment and world supply and demand for mineral raw materials. In this context the importance of the ‘inferred resources ’ category has to be stressed. It is generally accepted in many countries that investigation beyond the stage of geological assessment of inferred resources , and in particular the establishment of economic viability (mineability), is properly the role of the private sector. However, assessment up to this stage is a vital part of the work of national geological surveys, for the purposes of resource management, land-use regulation and planning, and participation in international compilations.
To clarifL the process by which ‘resource potential’ or ‘undiscovered resources’ are reduced, by stages, to individual mineable deposits, the series of four modified McKelvey boxes (figures 4.1, 4.2, 4.3, 4.4), should be studied in conjunction with the definitions that follow, below.
In the case of many low-value minerals, moving by assessment processes from an identified resource to a proved mineral reserve, normally involves a diminution of volume or tonnage. However, in the case of high value minerals, such as the ores of base-metals andprecious metals, once a proved reserve has been established, the inferred resource and probable reserve tonnages are normally extended by exploration and development work. This process continues until either the mineral deposit is exhausted or it has been made non-viable by economic factors. This dynamic process is often not well understood outside the mining industry.
Definitions
Four groups of definitions are presented in this section. The most important is (i) the deftnitions of reserves and resources suggested by the CMMI system. These are the definitions most likely to be used by the international financial community. The equivalent UN-ECE definitions are shorter and less comprehensive The other three groups correspond to (ii) the stages of geological assessment of the of the UN-ECE system (equivalent to the geological information axis of the McKelveyKMMI system), (iii) the stages of mineabiliq assessment of the UN-ECE system and (iv) the degrees of economic viability of the CMMIMcKelvey system. In a three-dimensional classification (ii), (iii) and (iv) correspond to the three axes and (i) to the boxes defined by those axes.
(i) Resource and reserve categories (CMMI)
The definitions that follow are closely based on those proposed by the Council for Mining and Metallurgical Institutions (CMMI).
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Demonstrated
Measured I Indicated
lexploration General exploration Prospecting Reconnaissance 1
ueraiiea I
I
Inferred
Geological information increases
Figure 4.1 Definition of resources - mineral resource potential
I I Identified resources
Demonstrated
/exploration General exploration k Prospecting Reconnaissance ~ r - Geological information increases
Figure 4.2 Definition of resources - identified resources
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I I Identified resources
Demonstrated Undiscovered resources
Detailed 1 exploration ~ General exploration Prospecting Reconnaissance
1 Geological information increases
Figure 4.3 Definition of resources - probable mineral reserve
identified resources
Undiscovered resources Demonstrated
'Measured I Indicated Inferred
1 Geological information increases
Figure 4.4 Definition of resources - proved mineral reserve
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0
0
Inferred mineral resource figure 4.3)
An inferred mineral resource is that part of a mineral resource inferred from geological evidence and having assumed, but not verified, continuity where information gathered through appropriate exploration techniques from locations such as outcrops, trenches, pits, workings and drill-holes is limited or of uncertain quality or reliability but on the basis of which tonnage/volume, quality and mineral content can be estimated with a low degree of certainty and low level of confidence.
With firther assessment part of an inferred resource may be fbrther delineated to the status of a measured andfor indicated resource. An Inferred mineral resource may be a possible extension of known and quantified measured + indicated resources but the term can also be used in a preliminary stage of investigation before the focus narrows to the other categories.
Example: primary geological mapping can typically dejine the ureal extent of an inferred mineral resource where the mineral concerned is extensive at or near the surface, e.g. outcrops of stratlform minerals such as coal, limestone, chromite or surjicial deposits such as bauxite or alluvial sand and gruvel.
A significant difference between the original USGSAJSBM scheme (figure 2) and that of the CMMI (figure 3) is that the former allowed the economic/sub-economic division to apply to the ‘inferred resource’, thus creating ‘inferred reserves’. This is not the case with the CMMI scheme: if geological assessment has only proceeded as far as the ‘inferred’ category then economic viability cannot be said to have been proved.
It should not be assumed that continued exploration will necessarily lead to all, or part, of an inferred mineral resource being upgraded to a mineral reserve, or even to an indicated or measured resource.
Indicated mineral resource Cfigure 4.4)
An indicated mineral resource is that part of a mineral resource that has been explored, sampled and tested through appropriate exploration techniques at locations such as outcrops, trenches, pits, workings and drill-holes which are too widely spaced or inappropriately spaced to confirm geological continuity but which are spaced closely enough to assume geological continuity and from which collection of reliable data allows tonnage/volume, densities, sue, shape, physical characteristics, quality and mineral content to be estimated with a reasonable level of confidence, but not a high degree of certainty.
Confidence in the estimate is such as to allow the application of technical, economic and financial parameters and to enable an evaluation of economic viability.
Measured mineral resource pgure 4.4)
A measured mineral resource is that part of a mineral resource that has been explored, sampled and tested through appropriate exploration techniques at locations such as outcrops, trenches, pits, workings and drill-holes which are spaced closely
16
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0 0
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0 0
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0 0
0
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0 0
enough to confirm geological continuity and from which collection of detailed reliable data allows tonnage/volume, densities, size, shape, physical characteristics, quality and mineral content to be estimated with a high level of certainty.
Probable mineral reserve figure 4.3)
A Probable Mineral Reserve, stated in terms of exploitable tonnes/volume and grade/quality, is that part of a Measured or Indicated Resource on which sufficient technical and economic studies have been carried out to demonstrate, at the time of reporting, that it can justify exploitation under appropriate technical and economic conditions.
Proved mineral reserve Gfigure 4.4)
A Proved Mineral Reserve, stated in terms of exploitable tonnes/volume and grade/quality is that part of a Measured Mineral Resource on which detailed technical and economic studies have been carried out to demonstrate, at the time of reporting, that it can justify exploitation under specific technical and economic conditions.
Mineral reserve estimates and measurements are the product both of mineral resource estimates from geological information, and of evaluations based on mining, metallurgical, economic, marketing, legal, environmental and social factors.
Feasibility of the specified mining and production practice must have been demonstrated or can be reasonably assumed on the basis of test measurements and studies.
The term ‘mineral reserve ’ need not necessarily signia that production facilities are in place or operative nor that all government approvals have been received, provided that there are reasonable expectations of such approval. @!here there is no such expectation, it is suggested that the term ‘proved resources’ should be used).
The term ‘economic’ implies that exploitation of the deposit is viable and justifiable under defined investment assumptions that have been established or analytically demonstrated.
(ii) Definitions of Stages of Geological Assessment. Proposed by United Nations - European Commission for Europe (UNECE, 1997)
Detailed Bploratz’on
Final target investigation involves the detailed three-dimensional delineation and physical sampling of a known target fiom outcrops, trenches, boreholes, shafts and tunnels, including bulk sampling for processing tests; the sampling grid is spaced so closely that size, shape, grade and other relevant characteristics of the target are established with a high degree of accuracy and in sufficient detail for mine planning.
17
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e 0
0
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0 0
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0
General Exploration
Preliminarv target - investigation involves the initial delineation of an identified target mostly by surface mapping, loose-grid sampling, and limited interpolation based on indirect methods of investigation, to establish general geological features and provide an initial estimate of size, shape and grade; results are adequate for deciding whether detailed exploration is warranted.
Prospecting
Target identification is the systematic process of searching for an unknown deposit based on geologc inference and/or postulation of extensions of known deposits, by outcrop identification and indirect methods; the objective is the discovery of a prospect which will be the target for hrther exploration.
Reconnaissance
Identification of mineralised areas is the process of narrowing down areas of enhanced mineral potential on a regional scale based primarily on airborne and indirect methods, preliminary field inspection as well as geological inference and extrapolation; the objective is to identifL mineralised areas for hrther investigation towards prospect identification.
(iii) Definitions of Stages of Mineability Assessment
Geological Study
An initial pre-investment study used for the transformation of a project idea into a broad investment proposition. A Geological Study forms a preliminary evaluation, and is aimed at identifymg a possible mineral reserve/resource investment opportunity. Although this is its main aim, other project-related parameters, for example, cost estimates to define preliminary cut-offs, should also be considered in the study.
Due to the preliminary character of this investigation, the error limits are usually greater than f 50%. The information base associated with this accuracy level are reserve/resource estimates based on results of prospecting as well as general and detailed exploration, and costs of comparable operations.
A geological study is often connected with an economic model study which addresses the following items:
- Mineral ReserveResource - Mining - Processing - Capital Cost Estimate - Operating Cost Estimate - Financial Analysis
18
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0 0 0 a a 0
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0
Pre-Feasibility Study
A Prefeasibility Study forms the basis for justimng fkrther investigations. It usually follows a successhl exploration campaign, and summarises all geological, engineering, environmental and economic information accumulated to date on the project.
Minimum error limits of less than f 50% are required for the evaluation. In advanced projects, the prefeasibility study should have error limits off 25%. The information basis associated with this accuracy level are reserves/resources figures based on detailed and general exploration, technical test and cost estimates e.g. from catalogues or comparable mining operations adapted to the project.
To be complete, the following items should be addressed in a Prefeasibility Study:
- Geology of Mineral ReservesResources - Mining - Metallurgy - Ancillary Services and Facilities - Transportation - Environmental Considerations - Construction Plan and Schedule - Capital Cost - Operating Cost - Financial Analysis
Feasibility Study
A Feasibility Study forms the basis for the investment decision. It demonstrates the technical soundness and economical viability of the project, and serves as a bankable document for the project financing. The study constitutes an audit of all geological, engineering, environmental and economic information accumulated on the project.
The result must be reasonably accurate (usually f 10% error), and no fkrther investigations should be necessary to make the investment decision. The information basis associated with this accuracy level are the reservedresources figures, based mainly on the results of detailed exploration, technical tests and direct cost estimates (e.g. quotations of equipment supplies).
To be complete, the following items should be addressed in a Feasibility Study:
- Geology, Mineralization and ReservedResources - Mining - Mill and Process Plant - Tadings Disposal - Water Management - Ancillary Facilities and Services - Power Supply - Infrastructure
19
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a a
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0
- - Construction Plan and Schedule - Environment - Closure Design - Capital Cost - Operating Cost - Closure Cost - Marketing - Financial Analysis -
Socioeconomic Impact and Human Resources
Rights, Ownership and Legal Matters
(iv) Definitions of Degrees of Economic Feasibility (fiddler, 1995)
Economic (normal)
Normally economic reservedresources are reserves/resources for which the current value of the recoverable commodity per mining unit covers at least all fixed and variable costs associated with the recovery process per mining unit, plus a reasonable profit. Thus, average value of the commodity mined per year must be sufficiently high above the average costs to satis@ the required return on investment.
Economic (Exceptional)
Exceptionally economic reserveshesources are reserveshesources which at present are not economic in themselves, but become economic due to any form of subsidy.
Potentially Economic (nargirzal)
Marginally economic reserveshesources are reserves/resources which at present are not economic, but border on being economically producible.
Potential Economic (Sub Marginal)
Submarginal reserveshesources are subeconomic reserveshesources which are presently not marginally economic, but might be so in the future.
6. TRADE STATISTICS
Trade in minerals, as in other materials, is measured where they cross national boundaries that are also customs barriers. Although industrial enterprises may analyse their own markets for their own purposes, the most commonly-used trade statistics are those provided initially by the customs operations of nation-states, normally processed through government trade or commerce departments and more or less freely available as official documents - but less available than formerly in many countries as commercial agencies charged with their publication are increasingly demanding commercial-rate fees for their services.
20
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0 a 0 a a a a a a a a a a a a a a a a a a a a 0 a 0 a
Fundamental to the workings of such trade regulation and measurement are the systems of trade classifications in use throughout the world. The majority of countries use the Combined Nomenclature (CN) established in January 1988 which classifies goods to an 8- digit level with national variations allowed for by a ninth digit. The basis of the Combined Nomenclature is the Harmonised Commodity Description and Coding System of the Customs Co-operation Council, or simply ‘Harmonised System (HS)’ (Anon a, 1986). A parallel classification is provided by the United Nations ‘Standard International Trade Classification (SITC), now in its third revision (SITC (R3)) (Anon b, 1986). This provides headings corresponding directly to those of the Harmonised System, but the order in which commodities are grouped varies between the two classifications. On 1 January 1993 the European Union introduced a new series of intra-EU trade statistics (INTRASTAT) with a corresponding INTRASTAT Combined Nomenclature (ICN) that provides details at the 8- digit level It is presumed that other trading blocs, e.g. NAFTA, may do something similar in the hture. A very few countries use their own classification system.
In the case of non-ferrous metals in the ‘unwrought’ state both CN and SITC codes are fairly simple and, it could be argued, almost too simple. For example (appendix 3 ) all copper ores and concentrates are classified under one SITC and one CN (8-digit) code, copper matte, cement copper and unrefined copper are each classified under one SITC and one CN (8-digit) code and refined copper is under one SITC and four CN (8-digit) codes. This is typical of the major non-ferrous metals; minor metals have fewer codes.
The trade classifications normally indicate by their digital coding when a given metallic material falls into particular categories, for example the CN coding (x = unspecified digits) is:
260X Ores and concentrates, slags
262X Ashes and residues
28XX Chemicals (and metallic mercury)
72XX Ferro-allo ys
’IXXX, 8XXX Metal (In the major metals, only, the fourth digit level also indicates the divisions into unwrought metal, semi- fabrications and scrap. In other metals this is indicated at lower levels.
A point that should be noted is that certain intermediate products of metallurgy, destined chiefly for eventual metallurgical use, report among the chemical codes (28XX). This applies particularly to alumina, vanadium pentoxide, molybdenum oxides and ammonium paratungstate.
21
7. CONSUMPTION ASSESSMENT
Consumption is defined here as the amount of a material that is used as a raw material by manufacturing, construction and other industries.
It can be argued that consumption should be measured as the amount of a material incorporated into a finished manufacture, or the amount of the material in manufactures that is eventually purchased by consumers. So, in a country lacking an industrial base of its own and heavily dependent on imports of either components or finished manufactures, the amount of materials consumed as manufactures would be high. However the complexity, and hence the cost, of acquiring this kind of information makes it impractical for most countries. It would, in any case, not be strictly a measure of minerals consumption. The underlying assumption for all minerals statistics activities is that it is primarily the needs of industry that are being addressed and only indirectly the needs of society or of a national economy.
Consumption is usually measured, and quoted, in one of two forms:
Reported consumption is the result of a questionnaire approach to industry. Companies and other industrial enterprises are asked to report their consumption of a material over a specified time (normally a year). The limitations of this approach lie in the fact that for many materials it is not practical to attempt to contact all the industrial consumers, and the survey is incomplete as a result.
Apparent consumption is a calculation made, usually on a national basis, that uses available data on production and trade (imports and exports). The hndamental equation, henceforth referred to as the ‘CPMX’ equation, is:
consumption (C) = production (P) + imports (M) - exports (X) - increase in stocks
The terms in this equation, which is illustrated in figure 5, can refer to an individual commodity, e.g. refined nickel, or to all forms of a generic commodity, e.g. all forms of nickel. In the second case a number of important footnotes apply:
i) Quantities involved all have to be reduced to a common unit, normally the unit weight (tonnes, kilograms) of contained element. (see comment, below).
ii) ‘Production’ comprises only mine production plus any production based on old (post-consumer) scrap - to avoid double counting. (see comment, below).
iii) ‘Increase in stocks’ simply becomes a negative number if stocks decrease (see comment, below).
Comment (i) Reduction to a common unit implies knowledge of the unit content of the different forms. This normally involves carehl research into the output fiom different plants and facilities, both in the home country and in the case of the external (foreign) sources of imports and acceptance of the difficulty that these may change fiom year to year.
22
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0
0 0
0
0
0 0
0
0
0 0
0
0
0
0
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0 0
0
0
0 0
0
0
0
0
0 0
0
0
X C U
r
0
0
0
0 0
0
0
0 0
0
0 0
0
0
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0
0 0
0
0 0
0
0 0
0
0 0 0
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0 0
0
0
Comment (ii) This applies almost exclusively to metals. It is assumed that new scrap is either reprocessed internally (‘run-around’ scrap) or, if bought in, was generated during the calendar period under review - and should therefore not be counted a second time. A very detailed analysis would also take into account the amount of waste generated in processing plants and not recycled interTially, as well as the amount of new (‘process’) scrap and waste used that was generated outside the calendar period under review.
Comment (iii) Stock movements are probably the most difficult aspect of mineral statistics. Stocks include producer stocks (‘inventory’ in American usage), consumer stocks, dealers’ stocks, e.g. in London Metal Exchange warehouses, and government ‘strategic’ stocks. In the case of LME and other exchanges’ warehouse stocks, and also of government stockpiles, information is normally in the public domain. In the case of other stocks it is not, since it is frequently not in the owner’s commercial interest that such information should be public. The economic analyst using the ‘CPMX’ equation is thus often left with an equation containing not one but two unknown factors. Fortunately, there are limits to the probable variations of both consumption and stocks - consumption in particular will not vary drastically in any one country from one year to the next without good reason,. such as the commissioning of new plant.
Comment (iv) The CPMX equation is sometimes referred to as a ‘balance’ or ‘commodity balance’ and its use extends farther than simply the calculation of consumption. Since it must be a balanced equation in any one calendar period all the factors in it act as mutual checks on each other. Thus the equation may bring to light discrepancies and errors in the reporting of production and trade, and its use is recommended for all commodities so far as time and finance considerations allow.
Metals consumption
Since metal processing, from ores to semi-fabrications may involve several process stages for one metal, often undertaken in different places by different enterprises, there is the opportunity to measure ‘consumption’ at each stage of processing as well as in the final output. This may be called intermediate consumption.
Scrap: The method of treating scrap on a national basis. for the purposes of the CPMX equation has been discussed, above, and the possible origin of errors identified. For the purposes of quantieing intermediate consumption of materials by a specific plant or a particular metallurgical sector only two options should be considered:
i) complete identification and measurement of all the material inputs and outputs, especially the tonnages and type (old scraphew scrap) of scrap involved.
ii) measurement of the material contents of the marketable output.
In some metallurgical industries, notably the steel industry, materials are dissipated during processing and do not report in end-products. Examples are manganese or fluorine in steel- making. For this reason method (i) above is obviously the preferable method of measuring
24
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consumption of such materials. However, if input, only, is taken as the measure of consumption of the constituents that do report in end-products there is a danger of over- stating the quantities concerned since the amount that becomes waste but which is ultimately recycled as process scrap is not considered.
Non-metallic minerals consumption
In the case of non-metallic minerals the question of recycled material seldom enters the measurement of consumption, although manufactures are recycled and may replace mineral raw materials, as in the case of glass.
In general non-metallic minerals do not go through so many processing stages as metals; typically the mineral is processed in one stage to a marketable product and is then incorporated in a manufacture or construction. For the purposes of a CPMX equation, reduction to elemental content is unnecessary in most - but not all - cases and stocks are not an important factor, although in the past there have also been exceptions to this generalisation, e.g. stocks of non-metallurgical chromite held in industrial countries when supplies from southern Africa were thought to be at risk.
In contrast to metals, the specification and hence the use of the first marketable product is in general more important in non-metallic minerals. It is usual for some non-metallic minerals to quanti@ the amounts of the mineral or its immediate product that are being consumed in different applications, e.g. limestone for aggregate, cement or chemical use.
8. DATASETS OF MINING OPERATIONS
The individual mining or quarrying operation is the basic source of all statistics and other information on production and resources.
The mining enterprise, as a commercial entity, may be the secondary source of data and indeed may be the only source, but in order to answer the question: ‘what is being produced, where, in what quantities and based on what reserves?’ it is necessary first to compile information on, at least,. the geographic location of mining operations, concessions and prospects.
The following section suggests an outline of a proposed dataset that was developed by the British Geological Survey, which may be used within a national context both as the basis for official reporting and as a publicly available document:
25
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0 0
0 0 0 0 0
0 0
0
0
0 0 0
0
0 0 0
0
Fields (1) to (7), inclusive, are keyfreldr in that they will occur in a number of other datasets and are unlikely to change from year to year Fields (1 1) and (1 2) are key/descriptive fields that are essential both for official returns and for the index. The remaining fields are descriptivejelds that may be used in both the official returns and the index depending on national requirements and practices.
Explanatory notes on the jields:
1) Accession number: A unique number applied to each entry. An indexed field used during data entry and for rapid retrieval. In conjunction with a separate ‘look-up’ table it can be used to retrieve the national data address.
2) Name of mine or quarry: The name by which the mine, quarry or prospect is generally known, e.g. Freda-Rebecca.
3) Operation type. The purpose of this field is to distinguish between underground, open- pit and dredge operations, inactive operations and prospects. In many countries the terms ‘mine ’ and ‘quarry ’ have legal and fiscal connotations, and in such cases it is necessary to use terms that do not cause problems in this respect. In English the terms ‘underground’ and ‘open-pit’ will serve and direct translations in to other languages may be possible. Alternatively, codes can be used.
4) Area of concession or licence can be linked to a Geographic Information System (GIS)
5) Grid co-ordinates Use of national grid co-ordinates will facilitate the compatibility of the index with cartographic records, but international co-ordinates such as UTM will be usehl in a regional context. Preferably, both should be included. Can be linked to a GIS.
26
e e e e e e a e e e a e a e 0
e e e e e e a a * a e e e e a e 0 0
0
6) Locality indicator The name of a nearby town or other prominent geographic point
7) Name of local government area. The area unit(s) to be used should be decided by national compilers, and as many levels included as are necessary, e.g. location/district/ provincehegion.
8) Mine/quarry address The local address of the actual mine or quarry, as distinct from that of the operator (see below).
9) Operator's address This is the address of the registered office of the operating company or licensee. It may be remote from the mine/quarry.
10) Name of operator, licensee or concessionaire If the operator is a subsidiary company, the name of the parent company should be given first, followed by the name of the subsidiary
11) Commodity In the index this would normally refer to the simplest commodity term applicable, e.g. 'copper'. In the official return the precise form of the commodity should be recorded, e.g. 'copper concentrate', with metal/mineral content shown. It is important that operators should avoid ambiguity in this field. Confbsion can be caused by incomplete descriptions, by the use of terms peculiar to the operator concerned, or, in the international context, by local mineral names that are restricted to the producing country.
A basic dictionary, or lexicon, of commodity terms in English, French Spanish and Portuguese is attached at Annex 2. This may be used to facilitate international, e.g. trains- regional, communication and co-operation on mineral resource topics.
12) Annual production tonnage This should give details of both the crude ore raised, with its grade, and any processed (beneficiated) material produced. Units of measurement must be indicated clearly. In the case of data for metal/mineral contents it must be clear whether the figure is that for content of ore raised (head grade) or to recoverable or recovered content of concentrate (concentrate grade) (Metal content of concentrate produced may be used as a proxy for recoverable content of ore). Distinction should also be made in certain ores between wet ore and dried ore.
It is important to note that many operators seek confidentiality for production information. In these cases, lf the minerals information dataset is to be in the public domain, it may be necessary to withhold data .from publications or, if acceptable to operators, to indicate output by a size category, e.g.:
Category A -.I 000 000 tonnesly ear
I 0 000 - 100 000
6 ' C ' " B 100 000 - I 000 000 " c " D I 000 - I 0 000 " E ' .I 000
'< I <
,I ,' ', I'
27
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a a a a a a a a a a a a a
a a a a e a a e a
0
0
13) Reserves Operators may be unwilling to give details of their mineral reserves for reasons of possible commercial disadvantage and in many countries are not compelled to do so by government. If they are attempting to raise capital, for example by a share issue, then the rules of a stock exchange or lending institution may compel them to do so, and hence the activity described in chapter 5 . In contrast, reserves data are the most important part of the return in China, as described in chapter 11. Whether published for national or commercial reasons it is essential that all reserves data are mutually compatible, that is, all operations should use an agreed standardised international system for reporting reserves. This topic is covered fully in chapter 5 of this manual.
14) Product marketed This is a valuable field in the case of those high-tonnage low-value minerals that have a number of different uses. Thus a limestone operation may market its product as aggregate, industrial(chemical) limestone, cement or dimension stone Fuilding stone). In many cases the entry in this field will be identical with that in the ‘commodity’ field but it is essential to retain both fields: while the ex-works product may be cement, this must not obscure the fact that for the purposes of the index the operation is a limestone quarry.
15) Geology This field can be developed as required by national compilers, but if it is not to become unwieldy a limit can be placed on the number of characters in the field.. As a minimum the field should contain geological system and local formation name, in the case of stratabound minerals, or simple structural description in other cases, e.g. ‘mineral vein’ This field should be completed by a competent geologist, preferably from the geological survey.
16) Free text field The purpose of this field is to allow the compiler to comment on any of the other fields, for example, to resolve ambiguities or to add information on history or future plans.
Data collection
An index, or data set, based on the model suggested in the preceding section will form the basis of any regular official survey of mineral production undertaken by a government department, at local or national level. Such a survey, which is usually undertaken annually by means of a printed questionnaire for completion by operators by a stipulated date, is henceforth referred to as a ‘return’ or ‘annual return’.
It is important to note the distinction between:
(i) Data that are already in the public domain and need only to be retrieved, sorted and entered into the index.
(ii) Data that are not in the public domain and which must be requested from companies either on an ad hoc basis or through the mechanism of the annual return.
Many of the fields listed above will correspond precisely to the information that official bodies (usually government departments) will ask operators to submit in regular (normally
28
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0 0
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0
annual) returns. In particular the fields (1 l), commodity, and (12), production, should be the absolute minimum information submitted in annual official returns. Operators may, however request that production data are not made public for commercial reasons; this applies particularly where there is only one producer of a particular commodity in the country.
Experience in the UK has shown that there is considerable demand for the non-confidential data, i.e. excluding fields (12) and (13), which are compiled by the BGS and published as a ‘Directory of Mines and Quarries’ (British Geological Survey, 1994).
UK - official reporting practice
An official government survey in the UK is carried out by the Office of National Statistics, through the Annual Minerals Raised Inquiry (AMRI), by means of a form that was originally developed with the assistance of the British Geological Survey. (Oil, gas and coal data are collected separately). The BGS has no right of access to the primary data but has recently undertaken contracts to vet the data and to identifL problems.
The AMEU form is designed chiefly for returns on non-metallic (construction and industrial) minerals, since the UK has very little metal (mine) production. As such it is not an ideal model to recommend to most developing countries but it is described in outline below in order to draw attention to certain notable features and because it is a demonstrable fact that as developing countries proceed on an upward curve of industrialisation the value of their non-metallic minerals production tends to increase at a more rapid rate than that of metallic minerals and may eventually overtake it.
UK - AMRI form headings
* * * Location of site (confirmation) * Number of persons employed *
Notes to be read before completing form Change of operator (if applicable)
Sales during the year of minerals extracted For each mineral commodity a statement is required of tonnage sold -for different uses. e.g.
5. Clay and shale for: 5. I 5.2 5.3 Cement 5.4 Lightweight aggregate 5.5 Construction use (including fill) 5.6 Other uses (Value requested is total of 5. I - 5.6)
Bricks, pipes and tiles Pottery (excl. ball clay and china clay)
Under ore minerals, tonnage is requested both for crude ore and for estimated recoverable mineral and metal content. No value statement is requested. Remarks Includes ‘Estimated time taken to complete this form.. . . . . . . . , ’. *
29
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0
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0 0
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0
0
The request for ‘sales’ information rather than ‘production’ again reflects the bias of this form towards construction and industrial minerals. Producers of high value minerals often accumulate significant unsold stocks or ‘inventory’. Recording of sales or shipments (despatches), only, would lead to an inaccurate picture of the true supply situation.
The final question in the form reflects an awareness of the need to minimise the time taken up by completion of such returns. Complicated questionnaires, whether official or commercial, are a cause of inaccurate returns and impaired productivity.
Reporting practice in Zimbabwe and China is recorded in chapters 10 and 1 1 of this manual
Prodcom
With the establishment of the single European market on 1 January 1993, two new statistical systems were introduced across the Community to measure production for sale (Prodcom) and intra-EC trade (Intrastat). Prodcom covers all activities, including mining and quarrying, but not the production of energy minerals. Information is required on the volume and value of sales and the data are collected against a series of headings and codes, the Prodcom list (Eurostat, 1993) which is based on the Harmonised SystedCombined Nomenclature trade headings (see chapter 6). Being based on trade headings the Prodcom list is not at present well-suited to minerals that do not enter international trade to any large extent, e.g. construction minerals, and some headings are ambiguous. The BGS is involved, with others, at a European level in an attempt to clarifL these.
As a first step towards establishing an international standard for product classification the Prodcom development should be welcomed by mineral statistics compilers worldwide. Many of the most difficult problems in minerals information are concerned with understanding terms used by the primary data providers (the operators), which may be ambiguous because of unqualified descriptions, fimdamental language problems or the use of terms peculiar to a specific producer.
Graphic illustrations of mineral statistics
Graphical illustrations should be used wherever possible to communicate statistical information. This is facilitated by modem computer sofiware packages that have chart- building options but some care has to be taken that the capability does not determine the result. The choice of graphics for particular purposes is to some extent a matter of subjective choice but certain recommendations are listed below:
Time point graphics
Pie charts may be used to illustrate, e.g. production contributions by value for different minerals, or export destinations.
Bilateral, or back-to-back, bar-charts are useh1 for comparing imports and exports of a range of commodities, or minerals trade balances with other countries (figure 6).
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0 0
0
0
0
0
0
0 0
0
0
0
0 0
0
0
0 0
0
0 0 0
0 0
0
0
0
0
0
0
0
Materials flow diagrams are an excellent tool for illustrating the complexity of the industrial transformation of minerals and their derivatives, based on the production and trade statistics for a single year (or other time point). A diagram of this type is essentially a visual version of the CPMX equation (figure 5).
2. Time series graphics
Historical sequences, e.g. a time series of annual production should be line-charts (preferably solid) when there are a large number of statistical points, and thus a high frequency of points on the time axis, but a bar-chart (histogram) is better for a small number of data or where different forms are to be plotted in each time point (figure 7).
Superimposed linecharts illustrate historical comparisons of, e.g. production from different sourzes (figure 8) or exports to different destinations.
Three-dimensional charts should only be used with care. They create a good impression hut seldom have an advantage over two-dimensional versions in providing information and are often confusing.
Numerical axes should have origins at zero. Other options are a journalistic device to exaggerate the range of variation in a data series.
Modern computer software offers a seductive range of graphics options but the best guide to the intelligent use of graphics is the work by E. R. Tufte (Tufte, 1983).
33
0
0 0
0
0
0 0
0 0
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0
0
0
0 0 0
0
0
0 0
0 0
0
0
0
0 0
0
0
0
0
0
9. PUBLICATION AND DISSEMINATION OF INFORMATION
The term ‘statistics’ has its origin in the rise of ‘statism’ in the eighteenth century, that is, the adoption by governments of an active role in the social and economic direction of their respective nation states using quantitative numerical data as essential indicators to necessary actions. In the past two decades there has been a movement in many countries away from active participation in industry and industrial planning. This has chiefly taken the form of denationalisation - the replacement of state ownership of industry by private ownership - and deregulation. However, as the former need for national data has declined, it has been replaced by requirements for transparency, for the protection of consumers and investors, and for data in support of environmental judgements. As a result the need for reliable and impartial information to be made publicly available is as strong as ever.
In the field of minerals the best way of providing this information is the publication of data in the form of an official annual statement. In many countries this has the title ‘Minerals Yearbook’ or equivalent e.g. Canada, Malaysia, Morocco, Thailand, UK, USA, Zambia, and the organisation responsible is the geological survey or minerals bureau, which is in turn normally a component of a government ministry of mines or industry.
Recommendations for a Minerals Yearbook
The essential fimction of an official minerals yearbook is to provide an annual update for those data that change either on an annual basis (which is how most data are collected) or continually, for example exploration and production activities. The fields covered are, to varying degrees of detail:
Numerical 1 Production (national/provincial/local) and value Trade (international) Consumption
Commentary: Production events (new mines, closures, capacity changes, company activities) Consumption trends Exploraiion activities Legal changes
All the above are normally discussed commodity by commodity.
Since neither Zimbabwe nor China, the two countries collaborating in the present study, produce such a publication at present (although private sector initiatives have been taken in Zimbabwe), the Malaysian Minerals Yearbook (Malaysian Minerals Yearbook, 1994) is described below, as an excellent example of its kind.
35
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0 0
0 0
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0
0 0 0
0 0
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0 0 0
a 0 0
0
e 0 0 0
a 0
0
0
Comments on main the mineral indu
36
a a a a a a
a a a
a a a
a a a a a a
e
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a a a 0 e a
a e
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a
10. CASE HISTORY I: ZIMBABWE
1. Ministry of Mines
Zimbabwe, in common with many other countries with a history of colonial development and fairly tight government regulation (past and present), has a well-organised system for collection of data on industrial operations, including mining. In many respects the former British possessions are somewhat more closely regulated in this respect than the UK itself. The Ministry of Mines is the chief government department concerned with the industry and the most relevant of its activities to the present study are as follows:
i) Return of output and disposals.
A questionnaire is issued in two versions: one for ‘base minerals and coal’ and one for ‘precious metals’. It is submitted to the Mining Commissioner in the relevant District and returns in each district are sent, eventually to the Ministry of Mines (Claims Ofice). A copy of the ‘base minerals’ form also goes to the Metal Marketing Corporation of Zimbabwe. The form asks for the following information:
37
a a a a a a a a a a a a e a a a a a a a
a a
a a a a a a a a
a
a
e
a
The ‘Precious Metals’ form is similar but requests more information on process used and on recovery in treatment.
Noted omissions fi-om the forms are:
i) any precise data on location - obviously because the accession number allows the operation to be cross-referenced to existing records in the Mining Commissioner’s office.
ii) Any information on reserves, or geological data
The forms are sent from the District Mining Commissioners’ offices to the ministry of Mines (Claims Department) where the data are checked, aggregated and returned in corrected form for archiving (also) in the District offices. If an operator is ‘grossly late’ in submitting the form the is liable to a fine of Z$ 500.
The organised, aggregated data are also sent to:
- Central Statistical Office - Chief [Government] Mining Engineer - Commercial Bank - -
Secretary of State for Mines Energy and Water Development uor coal data]
A copy of the ‘precious metals’ return is also sent to each District Inspector of Taxes
Also attached to the Ministry of Mines [ 19941, is the Minerals Development Unit. T h s is a multi-disciplinary research unit with the tasks of
- - -
utilising the statistics produced by the Claims Office extrapolating trends and making forecasts producing [internal] publications for the Secretary’s Annual Report, a ‘broad overview of industry’, relevant international developments. and recording trends in prices. The Unit also advises on an investment programmes in the public sector, e.g. the ZimbabweKJK Trade Agreement.
The Unit was supposed to have a staff of six, but was. understaffed at the time of the research and its fiture seemed uncertain. Its role was clearly analogous to the commodities advice section of the ‘Minerals Programme’ of the British Geological SurveyDepartment of Trade and Industry in the UK, but unlike that programme, its functions were also carried out to a certain extent duplicated by the Institute of Mining Research (IMR) and the Chamber of Mines.
Geological Survey
The chief concern of the Geological Survey is naturally with geological data and all those prospecting, exploration and mining activities that are dependent on geology. As well as the headquarters in Harare, it is represented in the same offices as the Mining Commissioner in
38
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0
the four mining districts, Harare, Bulaweyo, Gweru and Masvingo. In addition to its role as gatherer and custodian of the nation’s geological archive, the Geological Survey also deals with those orders, applications and commercial records where geological data have a definitive role.
The Mines and Minerals Act requires that:
(Section 420B (1)) ‘The miner of a registered mining location shall submit annually to the Director of Geological Survey any information of a geological nature, including logs and assay results of drill coresfrom surface diamond drill holes, and reports on any geological, geochemical and geophysical work, obtained by him during the course of his prospecting or mining operations’.
A second clause limits the use the Geological Survey may make of this information, and a third clause requires the operator to submit rock samples to the Geological Survey, if required. In fact it seems (1994) that these three clauses are not enforced.
The Act does not require operators to provide reserve and resource data.
However the Geological survey actively maintains a ‘Register of Mining Locations’
and deals with applications for ‘Exclusive Prospecting Orders’ (EPO) both at District level and in the GS headquarters. At the time of the research a major programme of digitisation of EPO records was under way.
The fact that it was not possible to enforce the submission of geological data to the GS before actual production starts - when there is a legal obligation to submit reports to the Ministry - is seen by the GS as a problem and an impediment to the provision of data both to government and the private sector. At the time of research (1994) a new form had been developed by the Geological Survey for possible use in collecting data.
Salient features of this proposed form - the Mines Annual Report (MAR) are presented below.
Among the ‘completion notes’ attached to the MAR form are the following paragraphs:
The information provided in the MAR will be used to establish and maintain a national mining and minerals (geoscientific) data base.
0 The purpose for establishing this data base will be to ensure that the Ministry of Mines/ZGS meets its statutory obligation to gather information required under the Mines and Mineral Act and can function as a national depository for mining and geoscientific data.
39
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0
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0 0
0 0
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0
The data base will be used to:
i) Compile generalised statistics about 2gional and national production of minerals, distribution of mineral reserves and resources, and expenditure on mineral exploration and mine development.
ii) Detect and quanti& statistical trends that will be of strategic use in the forward planning of the nation 's economy.
iii) Allow 'global' analysis of contained information for production of regional geoscientif c maps and for incorporation into ZGS publications.
The complete MAR has three sections:
Report particulars Part 1 : Mining information Part 2: Mine survey and geological information Part 3 : Claims exploration information.
Only the first two of these is examined in the present study. A simplified summary of these sections is given below. Full details are at annex. The numbers in brackets refer to the equivalent heading in the 'index' proposed in this manual (chapter 8).
REPORT PARTICULARS
MINENAME MINING DISTRICT
LOCATION Lat : Long: 1 : 50 000 MAP SHEET NO. : GRID REFERENCE:
MINERALS PRODUCED:
HOLDERS OF REGISTERED MINING LOCATIONS: JOINT VENTURE PARTNERS (if any): OPERATORS (if different): PARENT COMPANY (if any):
DETAILS OF CLAIMS HELD UNDER MINE NAME: LOCATION MAP:
DATA PROVIDED BY: CERTIFICATION: DATE: SIGNATURES
40
PI
0
0
0
0 0
0
0
0
0
0
0 0
0
0
0
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0
0 0
0
e 0
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0
0
0
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0 0
PART 1: MINING INFORMATION
1A TREATMENT Minerals, amounts, feed and recovery grades for ore and residues, with total value of production and costs per tonne - details in annex /W?fW
1B MINING Distancekost (development), tonnes and costltonne (stoping and oyencut)/3]
1C CAPITAL, DEVELOPMENT Distance, costs, explosives
1D CAPITAL EXPENDITURE (CAPEX) Type of project/plant and capacity
1E LABOUR Numbers contractedkasual
1F MINERAL RESERVES AND RESOURCES Minerals, amounts and grades -follows AuslMM guidelines (131
It is clear that this proposed Zimbabwe scheme has, in respect of necessary data, reached closely similar conclusions to the BGS. All but two of the hndamental data headings in the BGS scheme are covered by the ZGS scheme although the latter is far more detailed in its requirements since it is proposed as the primary return requested from operators, whereas the BGS scheme was designed to provide only ‘framework’ data. The equivalent primary return in the UK would be the Annual Minerals Raised Inquiry ( M H , (chapter 8).
Absent from the ZGS scheme are the headings for ‘mine/quarry address’ and ‘product marketed’.
In the case of the ‘address’ heading, it has been found usehl in UK to record this for the convenience of acquiring information about individual operations directly from local managers - but this obviously depends on the policy of the owners.
The ‘product marketed’ heading was included by the BGS, as explained, to identifl the ex- pit product in the case of industrial minerals operations such as a vertically-integrated limestone quarry and cement works. The ZGS scheme is naturally more focused on metal mining, and product information is covered in section 1A - although this does imply a separation of mining and metallurgical operations so far as official data gathering is concerned.
The MAR form would seem to be proposed as a replacement for the Return of Output and Disposals ’ - the ‘claims form’.
41
0
0 0 0 0
0 0
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0 0
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0
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Central Statistical Office (CSO)
The Central Statistical Ofice collects undertakes the annual Census of Production under the Stutistics Industrial Production) Replutions, I 9 70. This questionnaire is sent to firms with an output of more than Z$ 2000. Minerals producers comprise only one of many sectors that are required to complete the form.
The census asks for information, on three versions of a proforma for different sizes of company, on employment and earnings, value of output, product sales, costs of materials. detailed purchases of materials, other costs, stocks value, capital formation, wages and salaries and sundry other financial details. The data collected are used to monitor the overall performance of industry on an annual basis, to indicate trends, and to calculate indices of performance. It is the basis for the triennial publication Business Tendency Survey, a succinct report published as a single A3 format sheet every four months, and also the Quarterly Digest of Statistics, a 75-page report that presents, among other.
things, annual and monthly (for last two years) production figures for a selected range of minerals and metals, namely, asbestos, gold, chrome ore, coal, copper, nickel, iron ore, silver, cobalt, and tin metal.
Chamber of Mines
The Chamber of Mines is a private organisation whose members are mining companies operating in Zimbabwe.. It sends a questionnaire form to the major mining companies asking for information on production and value of major minerals on an annual basis (six monthly in the case of gold).
Institute of Mining Research (IMR)
This organisation with, in 1994, an establishment of 14 posts, is fbnded by the Ministry of Mines and based at the University of Zimbabwe. Its essential role is to undertake all kinds of practical and theoretical research in support of the mining industry. Disciplines represented in its establishment of 14 posts are mineralogy, economic geology, rock mechanics engineering, mineral process engineering, metallurgy,’ analytical chemistry, mineral economics and mineral statistics. Indications are, however that, particularly in times of strong activity in the commercial mining sector, it has some difficulty in filling posts with suitable staff - as in many other countries. In the area of information and statistics, its objective is to organise and analyse, with strong emphasis on information technology, the raw data on minerals and mining in Zimbabwe and neighbouring countries.
It maintains a ‘mines database’ using statistics obtained from the Ministry (the ‘claims returns’), directly from companies and from international mining industry journals. Four separate datasets are maintained, using D-Base I11 in ‘Clipper’ format (1994):
42
0
0 0 0
0
0 0
a 0
0 0 0
0 0 0
0 0 0
0
0 0 0 0
0 0 0 a 0 0 a a e 0
0
i) ii) iii)
iv) Labour dataset.
Identity of mine, its owners, and where located. ‘Base mineral’ dataset of production by tonnage, mine and sales destination. Precious metals dataset (also including diamonds), holding monthly production from mines. Data can also be selected by company.
The Institute also handles and analyses regional country data, particularly in the context of S ADC, comparing mining trends and identifying structural changes.
Another important database being developed by the IMR is the Zimbabwe Mineral Occurrence File (ZMOF). It was originally one of four datasets set up in the late 1980’s. (The others were the first three listed above). The ZMOF uses as its source of data chiefly the mineral occurrence sheets compiled between 1930 and 1960 by regional geologists and mining engineers, and also other mineral deposit compilations, ZGS publications, University theses and scientific publications. It has been estimated that there are probably some 7 400 mineral occurrences recorded in the source documents, of which only a small number have so far been entered in the ZMOF (1994). There would seem to be an interface between this initiative and the GIS system being developed in the University Department of Mineral Engineering.
The Institute prepares internal reports but due to the commercially confidential nature of much information submitted by companies these are not made public. Selected topics may in due course be published in international journals etc.
The IMR clearly performs the fbnction that would be undertaken in other countries by a ‘bureau of mines’, ‘minerals bureau’ or ‘minerals intelligence unit’ and such a facility would seem to be essential in a country such as Zimbabwe which has such a rich mineral endowment and a vigorous mining industry. Its work complements that of the ZGS, which is focused on geological data, but would seem to overlap to a large extent with the Mineral Development Unit. All three organisations are fbnded by the Ministry of Mines.
At present ( 1 994) minerals industry information input to these three government organisations greatly exceeds published output. A logical and highly usehl step would be for them to co-operate in producing an official annual publication, to include both statistics and commentary, on the Zimbabwe minerals industry. This’has been undertaken from time to time by commercial enterprises, e.g., the annual publication Mining in Zimbabwe (Thomson Publications) that has a ‘Register of Mining Companies’ and a ‘Schedule of Operating Mines’, as well as some text commentary on selected topics.
Department of Mining Engineering, University of Zimbabwe
A firther initiative is being undertaken in the Department of Mining Engineering (1994), where a ‘mineral resources database of Zimbabwe’ is being developed using ‘counterpart’ aid from Germany. This is a two-dimensional GIS system to be developed into a three- dimensional system using LYNX software. Its aim appears to be to incorporate all aspects of geoscience and mining data, using the National Remote Sensing System to incorporate
43
geophysical and geochemical data as well as the technical data submitted by the commercial sector, such as EPO returns and production returns. Its chief objective seems to be to facilitate grade control by government, on the South African model. At present there is a pilot scheme for the Shurugwe area that will be extended to the whole country if successfil. There have been exchange visits with Quebec, where a similar system exists. Completion was scheduled for 1996.
Ministry of Mines - Chief Government Mining Engineer
This department also collects data on mining operations by means of a voluntary return requested from mine managers - responding in the first instance to the Office of the Regional Mining Engineer in each Region. The information requested is:
I ) Tonnes treated ii) rost/tonne iii)
iv) v) vi) vii)
Ore reserves (tonnage and grade Primary development in metres (cost/metre) Secondary development in metres (cost/metre) Capilal development in metres (cost/metre) (shafts and development) Major capital expenditure with items and cost.
Summary:
A resumk of progress during the year and any other items that could be of interest to Dept. or Ministry, e.g. labour relations, labour complement, developments envisaged in the following year
A three-page proforma is provided for the response.
Much of the information requested is included in the proposed ZGS ‘Mining Annual Report’, which would presumably replace this return, if introduced.
Institution of Mining and Metallurgy - Zimbabwe Section
In response, initially to the 1992 initiative of the Institution of Mining and Metallurgy in London, the Zimbabwe Section convened a number of meetings to discuss the use of the terms reserves and resources in the Zimbabwe mining industry. It was reported in the second of these meetings, in November 1992 that:
‘Six mining companies (in Zimbabwe] employed the modern classlfication with three following the A u s I M , two the I&&? and one the guidelines of the Quebec Stock Exchange Securities Commission. By contrast another five mining companies did not distinguish between Reserves and Resources, but retained the words Possible Ore. Two other companies used a variety of terms to suit their particular needs’.
44
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0
0 0
0
0 0
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0
0
0 0 0
0 0
0
0
The meeting apparently agreed to adopt a distinction between Mineral Reserves and Mineral Resources in which Reserves were economic within the limits of mining operations, and Resources had an intrinsic value which could not at the time of the estimate be realised. It was also agreed that statements on reserves should be signed by a ‘competent person’ - in the wording of the IMM and that such signatories should be members of a self-regulating professional institution. It was recognised that this was chiefly significant in the context of the flotation of new mining enterprises on the Stock Exchange - which was precisely the dominant reason for world-wide concern about mis-use of the terms. There was, however, some resistance to the proposal that the Geological Survey should receive information from companies about reserves. The (then) Director of the Geological Survey apparently argued that the information would be used for a ‘global’ synthesis of mineral deposits of Zimbabwe and as such would be usehl in promoting investment and for guidance of national policy.
It seems clear that whatever the detailed debate in Zimbabwe concludes, there is good understanding of the issues involved and acceptance of the definitions recommended by the CMMl, even if existing operations continue to use their own classifications for internal purposes.
Conclusions (Zimbabwe)
Zimbabwe provides an example of a country where minerals information is collected and organised by a multiplicity of organisations. There is both duplication and omission in several areas. To a certain extent this is the consequence of procedures having persisted for along time with little critical assessment having been made of their efficacy or application. In recent years it is obvious that some of the organisations concerned are aware of this -
notably the Geological Survey (Ministry of Mines) - and have attempted to make reforms. Among positive factors are:
0 Application of modern information technology, particularly in the ZGS and the University. Transparency in respect of the roles of both official organisations and private sector bodies. High degree of competence and diligence in the staff of most organisations. Relatively open society with good access to key personnel.
0
Negative factors are:
0
0
Reliance on voluntary reporting (the Report to the Chief Mining Engineer). Lack of enforcement of statutory obligations (reports to the Geological Survey) Delays in compiling and publishing official data. Duplication of effort, especially in the analysis of information.
45
0
0
0 0
0
a 0 0
0
0
0 0
0
0 0
0 0
0
0 0 0
0 0
e 0 0
0 0
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0
0
e 0
0
Other, peripheral factors that cannot be overlooked are:
0 Proliferation of relatively new research organisations, made possible by multiplicity of the hnding agencies such as government, overseas aid and private sector. Suspicion in the private sector of extension of involvement of central government.
Zimbabwe is moving fbrther towards a free market economy and the two above concerns must be seen as aspects of this movement. The case for central government agency involvement in industry is being questioned in market economies throughout the world. It must however be recognised that so long as government is concerned to regulate and to raise taxes, then this can only be done fairly if reliable impartial information is made available.
46
11. CASE HISTORY U: PEOPLE’S REPUBLIC OF CHINA
In China the chief compiler of mineral information is the Ministry of Geology and Mineral Resources. Within that ministry, the Administrative Bureau for Mineral Reserves and Resources is concerned with information on mineral reserves and production at both central and provincial levels.
The Ministry has four functions:
i) Exploration management. ii) iii) iv)
Mineral resources and reserves administration. Management of mineral development and exploration Environmental and underground water management.
The Bureau, which is also the ofice of the National Mineral Resources Committee, has three functions:
i) ii) iii) Mineral reserve registration. iv) v) Geological archive management.
Examination and approval of mineral reserves (exploration report). Drawing-up of codes and guidelines for exploration.
Mineral Resources planning and attribution.
Mineral resources in China belong to the nation and the responsibility of the Committee, which operates at both provincial and national levels is to attribute (allocate) the resources to potential mine operators. Exploration is classified in three stages:
i) Prospect ii) Detailed prospect iii) Exploration
(i) and (ii) are the responsibility of the relevant ministry. Up to 12 ministries may be involved in mineral exploration, determined by the industrial sector that is the ultimate end-user of the mineral-based product. At stage (iii) the prospect must be referred to the Mineral Reserves Committee.
Mineral reserves attribution is based on the National Economic Development Plan and can be to provinces or ministries or government corporations. The aims are:
- - - Asset management -
To implement the national 5-year plan To reflect the needs of the nation
To protect national rights and the rights of exploration teams and mining companies To decrease the risks of mine development To survey resources for the nation.
- -
47
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Under the New China Policy the prospect developers can be private companies (national or foreign), local government or national corporation.
Mineral reserves and resources class~fication in China
On the founding of the people’s Republic of China mineral resources classification was initially based on the Russian system. Beginning in 1977 efforts have been made to modify the classification system in order to make it more compatible with those used in western countries. Under the system currently in use there is a fbndamental division into two types based on technical/economic considerations:
Type ( 1 ) Usable reserves ‘. . . . those that meet the current technical/economic conditions. ’
Type (2) Temporarily unusable reserves ‘....those that at present cannot be mined economically because of low grade of ores, thin orebodies, failure to solve dressing (smelting) technical conditions, unprofitability in the current economic situation due to deep burial of orebodies, very complicated hydrogeological, poor traffic conditions in remote areas, or important buildings, environments, protection of cultural relics and military demands.
This basic division is not given as much emphasis as the geological divisions (see below) but it is clear that it represents the division between ‘economic’ and sub-economic’ in the western systems, that is, the-horizontal line under the ‘reserves’ box in the McKelvey system. An important difference is that whereas in the western systems this division is based chiefly on technical and economic criteria, in the Chinese system equal emphasis is placed on environmental constraints. These constraints cause conceptual problems in the application of western reserve classification systems, particularly in the UK.
On the ‘geological information’ criteria (the horizontal axis of the McKelvey diagram) the Present Chinese system makes divisions into four ‘ranks’ of reserves, A,B,C and D and three other ranks, E,F and G. Ranks A,B and C are sometimes referred to as ‘proved’ reserves and rank D as ‘probable ‘reserves, in a reflection of western terminology. The precise criteria that define these ranks is as follows:
Category A:
I) The shape, attitude and spatial position of an orebody have been controlled accurately.
2) The faults, folds and pactured zones affecting mining have been accurately controlled and the lithology, mode of occurrence and distribution of barren rocks and igneous rocks destructing orebodies have been ascertained.
3) The commodity types and commercial grades of ores and their proportions and variations have been ascertained completely. If it is necessary to extract ores separately and geological conditions permit, commodity types and grades of ores should be delineated.
48
0
0
0 0
0
0
0
0
0
0
0 0
0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0 0
0
0
0
0
0
Category B
I ) 7he shape, attitude and spatial position of an orebody have been controlled in detail.
2) 7he nature and occurrence of faults, .folds and,fi.actured zones that destruct and affect orebodies relatively greatly have bee controlled in detail. The Iithology, occurrence and distribution of barren rocks and major igneous rocks destructing major orebodies have been in the main ascertained.
3) 7he commodity types and commercial grades of ores and their proportions and variations have been ascertained in detail. If it is necessary to extract ores separately and geological conditions permit, Commodity types and grades of ores should be delineated.
Category C
I ) The shape, attitude and spatial position of an orebody have been controlled essentially.
2) 7he nature and occurrence of larger faults, folds and fractured zones destructing and aflecting major orebodies relatively have been basically controlled and a broad knowledge has been gained about the lithology, occurrence and distribution of barren rocks and main ~ p e o u s rocks destructing main orebodies.
3) 7he commodity types and commercial grades of ores and their prcpx-tions and variations have been basically ascertained.
Category D
I ) The shape, attitude and distribution of an orebody have been roughly controlled.
2) A rough knowledge has been gained about the features of geological structure destructing and affecting an orebody.
3) The commodity types and commercial grades of ores have been roughly ascertained.
Categories A,B and C (‘industrial reserves’) are those on which mine construction and design are based. It seems clear that they are regarded as the equivalent of the measured + indicated reserves of western systems.
Category D is normally known as ‘prospective reserves’ but are also regarded by some as the equivalent of the ‘inferred reserves’ (sic) of western systems.
Categories E, F and G do not appear to be used to any significant extent.
‘Explored reserves’ refers to the sum of industrial reserves and prospective reserves [A+B+C+D] obtained through inputs of geological work in a certain period of time.
49
0
0
0
0
0
0
0
0 0 0
0
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a 0
0 0
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0 0 0
0
0 0
0
0 0
0
0
‘Retained reserves’ refers to usable reserves that are still retained in a deposit or mine, an area, or the whole country in a certain period of time. They are sometimes called ‘reserves’ for short.
‘Cumulative explored reserves’ refers to the sum of the usable reserves obtained through geological exploration and productive exploration since the founding of the People’s Republic of China.
‘Reserves being used’ refers to the sum of the reserves being mined at present or the usable reserves possessed by mines.
A complication in the Chinese system that is not present in western international systems (although something similar is used by some mining operations) is the introduction of a time connotation in the four reserve categories immediately above. A pragmatic western approach would assert simply that these were unnecessary and that .for external purposes either these tonnages or volumes are part of reserves or they are not.
The definitions used by the US Geological Survey (US Geological Survey, 1988) e.g. resource, reserve base, reserves, marginal reserves, sub-economic resources are well understood and are also used in Chinese publications (Chinese Institute of Mineral Resources Information, 1994). It is clearly the belief at national and provincial level in China that because of the changes in the economic system in China the national mineral reserves classification should be compatible with the major international systems in use in the west. As a direct consequence of the present project the Director of the Administrative Bureau of Mineral Resources and Reserves has since 1995 been a participant in the meetings organised by the UN Economic Commission for Europe that has produced a widely acceptable international classification that also incorporates the system developed recently by the CMMI.
IJscs of the reserve categories in permitted mine design and construction
i)
ii)
iii)
iv)
Medium-to-large scale metal and [high-value] non-metal mines must have ‘A’ rank reserves to make an extractive plan. B,C and D rank reserves form the basis of mine construction and design.
Medium-to-large scale coal mines must have ranks ‘A’ and ‘B’ for initial stage development, ‘B’ and ’C’ for middle stage development while ‘C’ is used for late stage mine development.
Small metal and non-metal mines, including small coal mines, need ranks ‘B’ and ‘C’ only. Rank ‘B’ is used for initial and middle stages and rank ‘C’ for late-stage development.
Small ‘sophisticated’ metal and non-metal mines need only ‘B’ rank reserves for mining.
50
0
0 0
0 0
e 0
0 0
0
0
0
0 0
0 0 0
0
0
0 0
0
0
0 0
0
0 0
0
e 0 0
0
0
Example: Yundu pyrite mine, Guangdong Province.
This mine was visited by the BGSproject leader on 31 March 1995.
It works a high-grade pyrite orebody 4.6 km by 1.0 km in area and, in general, between 50m and lOOm thick. Average grade is 31% S, with 54 per cent of the total reserves grading - 3 7% S. The. following reserve category data were supplied:
Detailed exploration had ouilined ‘B ’ reserves (20% of total) and ‘B’t- ’C” reserves (80% of total).
Production exploration was continuing and could he described in three stages:
Construction exploration identlfied ‘C ’ rank reserves adequate for 5 years ’ production (eventually raised to ‘B ’+ ‘C‘ rank reserves).
‘Cutting’ exploration raised ‘I]’+ ‘c” rank reserves to ‘B ’ i ‘C ’ reserves.
Production preparation exploration raised 3 ’ 4 ‘C ’ reserves to ‘A ’-1 ‘B ’ rank reserves.
‘Cutting reserves ’ and production reserves’ must keep ‘in balance ’. ‘Production preparation reserves ’ ( ‘A ’ + ‘B 7 must he adequate for 6 - 8 months ’ production. (‘A ’ rank reserves must he more than 80% of the total for production to he permitted). T’utting reserves ’ (‘B ’ 4- ‘C 7 must he adequate for 1.5 years’ production and ‘B ’- ‘C’ 4 ‘I1 ’ reserves must be adequate for 20 years ’ production, of which 20% must be ‘B ’ reserves.
This illustrates well the general, worldwide, concept of the diminution, in mass or volume terms, of reserve/resource categories as proving, or feasibility, studies become increasingly detailed. It can he illustrated by the diagram Cfpre 9) below:
Figure 9 Conceptual relationship of reserve ranks (China classification)
51
0
0
0
0 0
0
0
0 a 0 a 0 0 0 0
0 0
0 0 0
0
0
0 0
0 a 0
0
0
0
0
0 0 0
China: mineruls reporting. form:
52
a a a a a a a
a
a a a a a a a a a a a a a a a a
a a a a a a
e
0
e
e
Reporting of reserves and production data in China
A standard reporting form (following page) is sent to all mining operations on an annual basis. In contrast to similar questionnaires in western countries, emphasis is placed on the reporting of reserves and particularly on changes in reserve tonnagedvolumes during the reporting period. The form requests the following data. (Numbers refer to columns in the actual form, which is in A3 landscape format):
The form must be completed by each mining operation and returned to the Bureau of Geology and Mineral Resources in the province concerned by the end of January in the year following the year of the report It is then the task of the Bureau’s of Mineral Resources and Reserves Division (in Guangdong Province this consists of four staff plus one computer specialist) to check and edit the forms returned. Chief concerns are, for example, avoidance of double counting and the use of standard terms and units of measurement. The edited form must be exact, complete and entire. In Guangdong Province the Division now has a computerised data base for all mineral reserves in the province.
One apparent anomaly is that other bureaux, e.g. the Chemicals Bureau may receive returns from mining units working ‘chemical’ minerals - and which were approved by that bureau before mining commenced. In these cases the completed forms are passed across to the Bureau for Geology and Mineral Resources who are the final arbiters on mineral information.
The minerals data are ‘published’ i.e. promulgated for government use, in nine volumes that cover (i) fkels, (ii) ferrous metals, (iii) non-ferrous metals, (iv) precious metals, (v) rare earths, (vi) metallurgical materials ,e.g. flux, (vii) chemical minerals, (viii) construction minerals and (ix) water.
The experience of the Geology and Mineral Resources Bureau of Guangdong Province, as reported by members of its staff, was that:
The leadership role of the Bureau must be strengthened. It is important that there is one unique agency with the responsibility for compiling minerals information.
It was important to investigate results and to visit mining operations to check on and to improve the data reported.
Co-operation between the different bureaux to which the forms are submitted was very important.
It is necessary to modifi the content of the form in the light of experience.
The form and the minerals database must be closely related.
53
0 0
a 0
0 0
0
0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0 0
0
0
0 0
0
0
0
0 0
0
BGS comment:
I ) The most stribng feature of the Chinese minerals reporting system and its underlying philosophy is its emphasis on mineral reserves information (completely absent j -om the equivalent return in Zimbabwe, as a tool with which to regulate and actively direct the mining industry. In this respect the Chinese system dlffers markedly from thal qf most western countries where national need may become a factor in mining decisions, ,for example in environmental inquiries, but is not normally a (Font-end ’ consideration in mining proposals.
This is not to say that market-economy governments have no interest in the progress of mineral resources development but their concerns are more likely to be with fmancial, social and environmental impacts rather than the provision of raw materials j?om indigenous resources. However, in the last ten years the issue of sustainabi1iQ of resource exploitation has focused attention on the relationship of minerals production to other development and to protection of the environment. In particular, there is increased interest in developed market economies in strategic studies of the spatial distribution of mineral resources in relation to other, possibly competing land uses.
2) There is no requirement to record the value of the annual production, again in contrast to the Zimbabwe return. (Until 1996 this was not required in UK returns either).
3) There is no requirement to record number of persons employed at the operation.
4) There appears to be no statement about the identity of the operator, by name, although it is obvious that the identlfication number, mine name and location will be cross- referenced to this information elsewhere.
In the cases of both (2) and (3) it is likely that these data are supplied through other channels to other ministries. The omission is pointed out here by way of contrast to, in particular, the Zimbabwe procedure.
It is noteworthy that the proposed Mines Annual Record MAR) form in Zimbabwe would much more closely resemble the Chinese form in its requirement to provide more detail,
In both Zimbabwe and China the production data are passed to the government statistics ofBce, but in neither country is there an official regular publication (in the western sense), such as a ‘Minerals Yearbook ’ that deals specifically with national minerals information.
N-: In all comparisons between the situation in Zimbabwe and China it is fair to point out that whereas the project leader was able to make his own arrangements (advised by the Geological Survey) to visit organisations in Zimbabwe, the highly-structured discussions in China, where he was the guest of the Ministry of Geology and Mineral Resources, may have resulted in a narrower view having been obtained in that country.
54
0
0
0
0 0
0
0
0 0
0
0
0
0
0
0
0 0
0 0
0
0
0
0
0
0
0 0 0
0 0
0
0 0
0
12. REFERENCES
ALLEN, R.E. (editor) 1990 The Concise Oxford Dictionary of Current English, 8th Edition (Oxford: Clarendon Press)
ANON a, 1986 Harmonised Commodity Description and Coding System: Explanatory Notes (Brussels: Customs Co-operation Council)
ANON b, 1986 Standard International Trade (‘lass2fication Revision 3. Statistical Papers
BRITISH GEOLOGICAL SURVEY 1994 Directory of Mines and Quarries 1994 (Nottingham: British Geological Survey)
BRITlSH GEOLOGICAL SURVEY 1996 World Mineral Statistics 1991-95: production: exports: imports (Nottingham : British Geological Survey)
CHINESE lNSTITUTE OF MINERAL RESOURCES INFORMATION (Editors), 1994 Mineral Resources of China (China Building Materials Industrial Press)
DEYOUNG, J.H., Jr., SUTPHIN, D.M. and CANNON, W.F. 1984. International Strategic Inventory Summary Report: Manganese . U. S. Geological Survey Circular 930-a (and 13 subsequent commodity reports in USGS 930 series)
GEOLOGICAL SURVEY OF MALAYSIA. 1995. Malaysian Minerals Yearbook 1995 (Kuala Lumpur)
HCTMPHREYS, D.S.C 1983 Definitions and terminology for mineral production and consumption (London: Institute of Geological Sciences - Backgroundpaper for 7JNESCO Expert Group Meeting 11-19 January 1983 - unpublished)
MCKELVEY, V. E. 1972 Mineral resource estimates and public policy. American Scientist, v, 60, no. 1, pp. 32-40
MINING JOURNAL 1996 Minerals and Metals Annual Review (London: Mining Journal)
MISKELLY, N 1994 A comparison of international definitions for reporting mineral resources and reserves Minerals Industry International, July 1994
PRODCOM LIST VERSION 93 .O, 1993 (Luxembourg: Eurostat)
RIDDLER,G.P. 1995 Towards an international classification of reserves and resources (Joint Seminar for the Non-Ferrous Industry in the Federation of Russia and the European Union, September 1995, Eurometaux /ElJ-TACIS)
SCHANZ, J. J., Jr. The United Nations’ endeavour to standardise mineral resources classification. Natural Resources Forum, v. 4, no. 3, pp. 307-313)
55
a a a
a
a a
a
a
a a a a a a a
a
a
a
a
a a a a a a a a a a a a
a a
a
TUFTE, E. R, 1983 The Visual Display of Quantitative Information. (Cheshire, Connecticut: Graphics Press)
UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE 1997 IJnited Natzons International Framework Classfication.for Reserves/Hesources - Solid Fuels and Mineral Commodztres. (United Nations: New York)
U. S.GEOLOG1CAL SURVEY, 1980, Principles of a resourceh-eserve classification system for minerals U.S. Geological Survey Circular 83 I
U S GEOLOGICAL SURVEY AND BUREAU OF MINES 1996 Mzneral Commodzty Summaries 1996 (United States Department of the Interior - Geological Survey and Bureau of Mines)
56
0
0 a 0
0
a 0
0
0
a 0
0
0 0
0
0 0
0
0
0
0 a 0 0 0 0
0 0
0
0
0 0 0
Appendix 1: Symbols and units of measurement
Symbols recommended:
... Figures not available 0 - Nil nes Not elsewhere specified
Quantity less than half the unit shown
I Jnits of measurement and recommended abbreviations:
1 barrel (oil) ,. (sulphur) 1 carat (diamonds) 1 flask (merculy) 1 karat (gold) 1 kilogram (kg) 1 long ton (It) 1 long ton unit (ltu) 1 tonne, or metric ton (t)* 1 metric ton unit (mtu) 1 ounce (oz) avoirdupois 1 pound (Ib) 1 quintal (Latin America)
.. (Europe) 1 short tonne (st) 1 short ton unit (stu) 1 troy ounce (tr.oz)
= 0.139 tonnes, or 159 litres -= 0.285 tonnes = 200 milligrams = 76 pounds, avoirdupois = one twenty-fourth part = 2.2046 pounds, avoirdupois = 2240 pounds, avoirdupois = 1% of I long ton, or 22.4 pounds, avoirdupois = 1000 kilograms or 2204.6 pounds, avoirdupois = 1% of 1 tonne, or 10 kilogrammes = 28.3 5 grams, or 0.9 1 146 troy ounces = 0.4536 kilogrammes, or 16 ounces = 10 1.4 pounds, avoirdupois = 100 kilograms = 2000 pounds, avoirdupois = 1% of 1 short ton, or 20 pounds, avoirdupois = 3 1.104 grams, or 20 pennyweights (dwt)
* The use of the abbreviation ‘mt’ for metric tons, should not be sanctioned. It risks confusion with the (incorrect) use of ‘mt ‘for million tonnes. The internationally-recognized ahhreviation for million tonnes is ‘Mt ’ (megatonnes). The abbreviation ‘kt ’ (kilotonnes) is widely used for thousand tonnes but is unlikely to be confused with ‘kt’ meaning ‘knot’ - measurement of speed.
The US meaning of ‘billion’ as being I , 000,000,000 (107 is now generally accepted.
57
e e e e e e a a e e a e e e e 0 e e e e e a e e e e e e a a e e e e
Appendix 2: Dictionary of mineral commodities
EnPlish
anhydrite
asbestos
bauxite
ball clay
barytes
bentonite
calcite
celestite
chalk
China clay
chert
chromite
coal (hard)
cobalt
common clay
copper
diamond
diatomite
dolomite
feldspar
fireclay
fluorspar
germanium
Francais
anhydrite
asbeste, amiante
bauxite
argile plastique
baryte
bentonite
calcite
celestite
craie
kaolin
chert
chromite
charbon, houille
cobalt
argile
cuivre
diamant
diatomite
dolomite, dolomie
feldspath
argile refractaire
spath fluor
germanium
58
Espaiiol
anhidrita
asbesto, amianto
bauxita
arcilla plastica
barita
bentonita
calcita
celestita, celestina
creta
caolin
chert, pedernal
cr omi t a
carbon, hulla
cobalto
arcilla comun
cobre
diamante
diatomita
dolomia, dolomita
feldespato
arcilla refractaria
espatofluor
germanio
Portugues
anidrita
asbesto, amianto
bauxita
argila plastica
baritina
bent oni t a
calcita
celestita
greda
caulim
chert, silex corneo
cromita
carvao, hulha
cobalto
argila comum
cobre
diamante
diatomito
dolomia, dolomita
feldspato
argila refractaria
espatofluor
germanio
0 0
0
0 0
0
0
0 0 0
0
0 0
0
0
0 0
0
0
0 0
0
0 0
0
0
0 0
0
0
0 0
0
0
English
gold
graphite
gY Psum
honest one
ilmeni t e
iron ore
igneous rock
lead
lignite (brown coal)
limestone
lithium
magnesite
manganese
marble
mercury
metamorphic rock
mica
molybdenum
nickel
niobium
perlite
phosphate rock
platinum
potash salts
pumice
Francais
or
graphite
gYPse
pierre a aguiser
ilmenite
minerai de fer
roche ignee
plomb
lignite
calcaire
litium
magnesite
manganese
marbre
mercure
roche metamorphique
mica
molybdene
nickel
niobium
perlite
phosphate
platine
sels de potasse
pierre ponce
59
Espaiiol
or0
grafito
yeso
piedra de afilar
ilmenita
mineral de hierro
roca ignea
plomo
lignito
caliza
litio
magnesita
manganeso
marmol
mercurio
roca metamorfica
mica
molibdeno
niquel
niobio
perlita
fosfato
platino
sales potasicas
piedra pomez
Portugues
our0
grafite
gesso
pedra de afericao
ilmenite
mineral de ferro
roca ignea
chumbo
lignite
calcaria
litio
magnesite
manganes
marmore
mercurio
roca metamorfica
mica
molibdenio
niquel
niobio
perlite
fosfato
platina
sais potassicas
pedra pomes
0
0
0
0 0 0
0
0
0
0
0
0
0
0
0
0 0 0
0
0 0
0
0 0
0
0
0 0 0
0
0
0 0
0
English
pyrite
rare earths
rock salt
rutile
sandstone
sand and gravel
shale
silica sand
slate
sillimanite
silver
sodium carbonate
sulphur
tantalum
talc
tin
titanium
tungsten
tufa, calcareous tufa
tuff
uranium
vanadium
vermiculite
zinc
zircon
Francais
pyrite
terres rares
sal gemme
rutile
gres
sable et gravier
schist argileux
sable silicieux
ardoise
sillimanite
argent
carbonate de sodium
soufre
tantale
talc
etain
titane
tungst ene
tuf calcaire
tuf volcanique
uranium
vanadium
vermiculite
zinc
zircon
EsDafiol
pirita
tierras raras
sal gema
rutilo
arenisca
arena y grava
esquisto arcilloso
arena silicea
pizarra
sillimanita
plata
carbonato de sodio
azufre
tantalio
talco
estaZo
titanio
tungsten0
toba calcarea
toba volcanica
uranio
vanadio
vermiculita
zinc
zircon
60
Portugues
pirita
terras raras
sal gema
rutilio
arenito
areia e pedregulho
xisto argiloso
areia silicosa
ardosia
sillimanita
prata
carbonato de sodio
enxofre
tantalo
talco
estanho
titanio
tungstenio
tufo calcario
tufo vulcanico
uranio
vanadio
vermiculito
zinco
zircao
0
0 0
0
0
0
0
0 0
0
0
0
0 0
0
0 0
0
0
0
0
0 0
0
0 0
0 0 0
0
0
0
0
0
Appendix 3: Commodities, with trade classifications and descriptions
SlTC (R3) : Standard International Trade Classification (Revision 3) HS WMS
SITC
277.2
273.4
285.1
598.9
285.2
522.6
684.1
684.1
288.2
287.9
322.6
523.4
689.9
: Harmonised System : World Mineral Statistics - British Geological Survey
- HS
25.13
:VOTE:
25.17
26.06
38.23
28.18
28.18 NOTE:
76.01
76.01
76.02 NOTE:
26.17
28.25
28.30
81.10
ABRASIVES
Natural abrasives. excluding precious and semi- precious stones See note on DIAMOND
AGGREGATES
Pebbles, gravel, shingle or flint; limestone, dolomite, marble. igneous or other rock, broken or crushed
ALUMINIUM
Aluminium ores and concentrates Bauxite
Calcined bauxite (refractory grade)
Alumina (aluminium oxide)
Alumina hydrate (aluminium hydroxide) Alumina and hydrate are shown together in some trade accounts.
Unwrought aluminium: Billets, blocks, bars, ingots, lumps, pellets, slabs, etc.
Alloys
Waste and scrap (including alloys) See also ferro-alloys.
ANTIMONY
Ores and concentrates: Stibnite Cervantite Kermesite Senarmontite Valentinite
Oxides
Sulphide (include polysulphides)
Unwrought and wrought antimony and alloys Waste and scrap
61
Description in WMS
1 } Bauxite (show calcined } separately where possible) }
Alumina
Alumina hydrate
} } Unwrought z
Unwrought alloys
Scrap
1 1 } Ore/ores and concentrates } 1 I
Oxide
Sulphide
} Metal }
a 0
a a a a a a 0
0 a 0 a 0
0
a 0 0
a 0 a a 0
0 a 0
0 0 a a a 0
0
0
522.3
522.2
278.4
278.9
278.2
278.2
287.9
287.9
522.6
523.2
523.5
523.7
689.9
278.9
278.9
28.11
NOTE:
28.04
25.24
NOTE.
25.11
NOTE:.
25.08
25.08
26.17
26.17
28.25
28.27
28.34
28.36
8 1.06
27.14
25.28
ARSENIC
Arsenic trioxide (arsenous oxide, white arsenic)
May be described as arsenious acid or anh-ydride.
Metallic arsenic (common or yellow)
ASBESTOS
Unmanufactured asbestos: Amosite Crocidolite Clqsotile
Take crude, mine$bre, shorts, Jakes, powder and waste.
B A W M
Barytes (natural barium sulphate) Witherite (natural barium carbonate) Trade in barium minerals is generally described as barytes and witherite, although it is thought that very little, f a n y , witherite is traded.
BENTONITE AND FULLER’S EARTH
Bentonite
Fuller’s earth (decolourising earths) Attapulgite Sepiolite
BERYL
BISMUTH
Ores and concentrates
Oxides and hydroxides
Oxychloride (bismuthyl chloride)
Nitrate
Carbonate
Unwrought and wrought bismuth and alloys Waste and scrap
BITUMEN
Bituminous shale and tar sands, natural bitumen and asphalt etc.
BORATES
Natural borates , excluding from brines
62
White arsenic
Metallic arsenic
} } Unmanufactured (show) } mineral and type } separately if large enough)
} Barytes }
Bentonite
} } Fuller’s earth
Ore/ores and concentrates I 1 } Compounds 1
} Metal }
a a a
a a
a
a a
a a a a
a a
a a a
a a a a
a a
a a
0
0
0
e
a
0
0
0
0
BROMINE
Bromine Bromine 522.2 28.01
CADMIUM
Oxide Oxide 522.6
523.1
28.25
Sulphide Sulphide Natural sulphide comes under SITC 278.99, ILS 25.30.
28.30 ,VOTE:
288.1
689.8
26.20
81.07
Flue dust - cadmium content Flue dust
Unwrought cadmium and alloys Waste and scrap
Wrought cadmium and alloys
1 } Metal
699.8 8 1.07
CHALK
Chalk 25.09 278.9
CHROMIUM
Ores and concentrates Ore/ores and concentrates 287.9
689.9
26.10
81.12
NOTE:
Unwrought and wrought chromium and alloys } Metal
See also ferro-alloys. Waste and scrap 1
COAL
321.1
321.2
322.2
322.1
322.2
27.01 Coal: Anthracite Anthracite
Bituminous Hard, gas, coking coal etc
Lignite Brown coal
1 Othercoal }
27.02
27.01
27.02
Lignite Brown coal
Briquettes of coal
Briquettes of brown coal
I } Briquettes 1
COBALT
287.9 26.05 Ore: Cobaltite, sulphide and arsenide ore
Oxides, impure
Oxides and hydroxides
Unwrought cobalt and alloys Waste and scrap
Wrought cobalt and alloys
I } Orelores and concentrates } } 288.1
522.5
689.8
26.20
28.22
81.05
Oxides
I } Metal
699.8 81.05
63
283.1
283.1
283.2
682.1
682.1
682.1
682.1
288.2
667.2
277.1
667.4
277.2
Values
26.03
26.03
74.01
74.02
74.03
74.03
74.05
74.04
71.02
71.02
71.04
71.05 ,110 TES:
Imports c. i.$ Exports f 0. b.
278.9 25.12
NOTES:
662.3 69.01
273.1 25.14
25.16
COPPER
Ores and concentrates
Roasted or burnt iron pyrites containing more than 0.5% copper
Matte Cement copper
Unrefined copper (blister) Anodes
Refined copper: Cathodes and wire-bars Bars, rods, billets, blocks. ingots. slabs. etc.
Alloys (including bronze and brass)
Master alloys
Waste and scrap (including alloys)
DIAMOND
Rough or uncut Cut andor polished
Industrial Bort
Synthetic diamonds
Dust and powder of diamonds 1. Dust and powder ofprecious stones is usually diamond or garnet dust. 2. Value only given in many countries' trade accounts.
DIATOMITE
Diatomite Diatomaceous earth Moler earth Kieselguhr Tripolite 1. May be called infusorial earth or siliceous
,fossil meals and earths. 2. Tripoli under code 25.12 is tripoli&. Tripoli under code 25.13 is an abrasive.
Moler bricks
DIMENSION STONE
Slate. roughly trimmed, or cut into blocks or slabs
Marble,roughly trimmed ,or cut into blocks or slabs
64
Ore/ores and concentrates
Burnt cupreous pyrites
} Matte and cement 1
1 } Unwrought (unrefined } and refined shown } separately where possible) 1 f
1 } Unwrought alloys 1
Scrap
Rough Gem cut f
Industrial Bort
Dust
1 1 Diatomite (exports of } moler shown separately } for Denmark only) I
Moler bricks (exports for Denmark only)
25.16
278.2
278.5
278.5
689.9
289.1
97 1 .O 1
97 1.03
278.2
273.2
689.9
522.2
81.5 & 6
25.18
25.29
25.29
81.12
26.16
7 1.08
71.12
25.04
NOTE:
25.20
81.12
28.01
26.01
Granite, sandstone or other rock. roughly cut into blocks or slabs
DOLOMITE
Dolomite, calcined or uncalcined. roughly trimmed or cut
FELDSPAR
Feldspar
FLUORSPAR
Fluorspar
GERMANIUM
Germanium. unwrought
GOLD
Ores and concentrates
Gold and alloys. unwrought and partly worked
Sweepings. waste and scrap etc.
GRAPHITE
Ores and concentrates
Metal
Waste and scrap
Crude natural graphite: f Plumbago Black lead }
} Graphite
A4a.v be washed, crushed, ground or powdered. May include arti$cial or synthetic graphite.
GYPSUM
Crude gypsum (natural calcium sulphate) Anhydrite Calcined gypsum (plaster)
INDIUM
Indium, unwrought
IODLNE
Crude iodine Resublimed iodine
IRON AND STEEL
Ores and concentrates: Haematite Limonite Magnetite Sidente
65
Dolomite
Feldspar
Fluorspar
} Crude }
Calcined
} Iodine }
1 1 1 } Ironore 1
0
0
0
0
0
0 0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0
0 0
0
0 0
0
0 0
0
0
0
0
28 1.4
671.2
671.2
671.3
671.3
67 1.5
522.2
672.4
672.4
672.4
vo Tl:
26 01
%01E
72 0 1
NOTE
72 01
72 03
72 05
72 02
28 04
72 06
72 18
72 24
672.6 & 7 72.07
Manganiferous iron ore (with Mn content of than 20% dry weight)
Manganiferous iron ore may be included.
Burnt or roasted iron pyrites (excluding those with copper content of more that 0.5% ‘Unroasted pyrites ’ should be included with su lph ur.
Pig iron Cast iron in pigs. blocks or similar forms Vanadium - titanium pig iron is also shown on the vanadium table.
Spiegeleisen
Direct reduced iron (DRI) Sponge iron
Iron or steel powders Sponge iron powder
Ferro alloys: Ferro-aluminium Ferro-silico-aluminium Ferro-silico-mangano-aluminium Ferro-boron Ferro-chrome Ferro-silico-chrome Ferro-silico-magnesium Ferro-manganese Ferro-silico-manganese Ferro-molybdenum Ferro-nickel Ferro-niobium Ferro-phosphorus Ferro-silicon Ferro-titanium Ferro-silico-titanium Ferro-tungsten Ferro-silico-tungsten Ferro-vanadmm Ferro-zirconium Other ferro-alloys
Silicon metal
Ingots of iron and steel Ingots of high carbon steel Puddled bars, pilings, blocks, lumps etc. of iron and steel
Ingots of stainless steel
Ingots of other alloy steel
Blooms billets, rounds, slabs and sheet-bars of iron and steel
66
Burnt pyrites
f } Pig iron
Spiegeleisen
f f Sponge and powder } (show separately if large j. enough) 1
Silicon metal
0
0
0
0
0 0 0
0
0
0
0
0
0
0 0
0 0
0
0
0
0
0
0
0
0
0
0 0 0
0
0
0 0
672.8
672.8
282.0
278.2
287.4
685.1
685.1
288.2
273.2
278.9
523.7
522.6
522.2
72.18
72.24
72.04
25.07
NOTE:
26.07
78.01
78.01
78.02
25.21
NOTE:
25.30
28.36
28.25
28.05
As above of high carbon steel Roughly shaped or forged pieces of iron and steel As above of high carbon steel
Blooms. billets, rounds. slabs and sheet-bars of stainless steel Roughly shaped or forged pieces of stainless steel
Blooms, billets. rounds, slabs and sheet-bars of other alloy steel Roughly shaped or forged pieces of other alloy steel
} f 1 f } Blooms, billets f 1 I I f f }
Waste and scrap of iron and steel f Scrap Tin-plate scrap I
KAOLIN
Kaolin (china clay) } Kaolin
Kaolin may be included with bentonite. Kaolinic clays 1
LEAD
Ores and concentrates: Anglesite Cerussite Galena Pyromorphi te
I 1 } Ore/ores and concentrates f f
Unwrought lead: I
1 Base bullion, pigs and unwrought bars } Unwrought Ingots, blocks, slabs. cakes and sticks
Alloys Unwrought alloys
Waste and scrap Scrap
LIMESTONE
Limestone flux; limestone etc. used for manufacture of lime or cement This excludes limestone in ‘aggregates’ (2 73.4) and ‘dimension stone ’ (2 73. I )
LITHIUM
Ores: Amblygonite Lepidolite Petalite Spodumene
Carbonate
Oxide and hydroxide
L i h u m metal
67
1 } ) Lithium minerals I I
Carbonate
Oxides
Metal
0
0
0
0 0 0
0
0 0
0
0
e 0
0
0
0
0 0
0 0
0
0
0
0
0
0 e 0
0
0
0
0
0
0
MAGNESITE
Magnesite (natural magnesium carbonate) Magnesite 278.2 25.19
Fused magnesia Dead-burned (sintered) magnesia Caustic-burned magnesia Magnesium oxide (calcined natural magnesiuin
carbonate)
MAGNESIUM METAL
Magnesium, unwrought 689.1
287.7
8 1.04
MANGANESE
I f } Ore/ores and concentrates }
26.02 Ores and concentrates: Pyrolusite (manganese dioxide) Manganiferous iron ore (with Mn content of 20% or more dry weight)
Pyrolusite (used in dry batteries) I . Ferruginous manganese ore may be included. 2. See also ferro-alloys.
Unwrought and wrought manganese and alloys Waste and scrap
278.9
689.9
25.30 NOTES:
} Metal t
81.11
MERCURY
287.9
522.2
26.17
28.05
Ores:
Mercury (quicksilver) Cinnabar (mercury sulphide)
Mercury
MICA
Unmanufactured mica: Block Splittings and condenser film Ground or powder Waste
278.5 25.25 ) 1 } Unmanufactured } 1
MOLYBDENUM
287.8 26.13 Ores and concentrates: Molybdenite Wulfenite
} } Ore/ores and concentrates 1
Oxides and hydroxides
Unwrought molybdenum and alloys Waste and scrap
Oxides 522.6
689.1
28.25
8 1.02 1 } Metal 1 1 699.9 81.02
NOTE: Wrought molybdenum and alloys See also ferro-alloys
NEPHELINE SYENITE
278.5 25.29 Leucite; nepheline and nepheline syenite
68
0
a a 0
a a a a a a a a a a a a a a a a a a a a a a a 0
a a a a 0
0
284.1
522.6
284.2
284.2
683.1
683.1
288.2
278.9
333.0
334.1
333.0
334.1
272.3
272.1
289.1
681.2
26.04
28.25
75.01
75.01
75.02
75.02
75.03 :VOTE:
25.30
27.09
27.10
27.09
27.10
25.10
3 1.01 NOTE:
26.16
71.10
NICKEL
Ores and concentrates
Oxide
Matte Speiss Oxide sinters Other intermediate products
Ferro-nickel (impure)
Unwrought nickel:
shot etc. Ingots, cathodes, pellets, cubes, rondelles,
Alloys
Waste and scrap See also ferro-alloys
PERCITE
Perlite
CRUDE PETROLEUM
Crude petroleum
Crude petroleum, topped
Shale oil
Shale oil, partly refined
PHOSPHATE ROCK
Natural phosphates: Natural calcium phosphates Natural aluminium phosphates Apatite Phosphate rock Phosphatic chalk
Phosphatic guano See also ferro-alloys
PLATINUM
Ores and concentrates: Platinum Palladium Ruthenium Rhodium Iridium Osmium
Platinum and alloys, unwrought and partly worked
69
Orelores and concentrates
Oxide
> } Mattes, sinters etc. 1 1
Ferro-nickel
1 } Unwrought f
Alloys
Scrap
} } Crude petroleum 1
1 1 } Phosphate rock 1 1 1
Guano
} 1 1 } Ores and concentrates 1 1 1 } Platinum 1
681.2
289.2
272.4
562.3
562.3
562.3
522.6
523.7
523.3
523.5
523.4
278.5
278.9
286.2
525.9
7 1.10 Platinum group metals and alloys, unwrought and partly worked:
Palladium Ruthenium Rhodium Iridium Osmium
7 1.12 Sweepings. waste, scrap etc Platinum Platinum group metals
POTASH
3 1.04 Crude natural potassium (potash) salts Crude natural potassium nitrate
3 1.04 Potassium sulphate Magnesium sulphate - potassium sulphate
3 1.04 Potassium chloride
3 1.04 Other potassic fertilisers
28.15 Caustic potash (potassium hydroxide): Lime potash Potash lye Potassium peroxide
28.36 Carbonate (neutral or acid pi-carbonate]) Percarbonate
28.29 Chlorate and perchlorate
28.34 Nitrate (saltpetre)
28.33 Persulphate NOTES: 1. Only those chemicals listed above should be
included. Any others specijcally identijed or shown as ‘others ’ in the trade account should be included. 2. Gross weight should be shown whenever possible, instead of &O content.
QUARTZ
Quartz and quartzite, other than natural sands
RARE EARTHS
25.06
25.30 Ores: Bastnasite Xenotime Gadolinite
26.12 Monazite
28.46 Compounds and mixtures: Cerium (oxide, hydroxide and salts; being
70
1 }
} Platinum metals 1 I
} } Waste and scrap 1
f Fertiliser salts 1
} Sulphate }
Chloride
Other potassic fertilisers
1 } 1 I
} } Potassic chemicals
1 1 } Ores and concentrates 1 1 1
0
0
0
0
0
0 0
0
0
0
0
0 0 0
0
0 0
0
0
0 0 0
0
0
0 0
0
0 0 0
0
0
0
0
899.3 36.06
522.2 28.05
273.3 25.05 !VOTE:
273.3 25.05 NOTE:
278.3 25.01
522.2 28.04
278.2 25.08
NOTE.
nitrate, sulphate. oxalates and chloride) Yttrium oxide (yttria) Terbium oxide (terbia) Other rare earth metal compounds
Ferro-cerium and other pyroplioric alloys in all fonns Lighter flints
Metals: Cerium Terbium Erbium Yttrium Scandium Lanthanum
SANDS
Silica sands and quartz sands This should comprise chiefly special sands for e.g. glass-making
Other sands IiThis category should include building sand, but this is open included in ‘aggregates’ (273 4) 2) Excludes metal-bearing sands of division 28, e g titanium concentrates
SALT
Common salt Rock salt Table salt Iodised salt Waste salt Sea salt Salt liquors Evaporated salt Pure sodium chloride Sodium chloride crystals
SELENIUM METAL
Selenium
SILLIMANITE
Sill i manite minerals : Andalusi te Kyanite Mullite
Chamotte Dinas earth
Chamotte and dinas earth should only be included if inseparable @om other sillimanite minerals.
71
Rare earth compounds f (show separately if‘ large } enough) I } Ferro-cerium and other } pyrophoric alloys f
f f f } Metals f f f
I f f f } Salt f I f f }
f } Sillimanite minerals I 1
0
0
0
0 0 0
0
0 0
0
0
0 0
0
0 0 0
0
0
0 0
0
0 0 0
0
0
0
0 0
0 0
0 0
SILVER
Ores and concentrates: Argentite Pyrargyrite Proustite
289.1 26.16 Ore/ores and concentrates
681.1
289.2
71.06
71.12
Silver and alloys, unwrought and partly worked
Sweepings, waste and scrap etc.
STRONTIUM MINERALS
Metal
Waste and scrap
SULPHUR AND PYRITES
274.2
274.1
25.02
25.03
Unroasted iron pyrites Unroasted cupreous iron pyrites
Pyrites 1
} Sulphur 1 3
1
Other }
Crude
Refined } Sulphur
Sublimed and precipitated
Sulphur (other than sublimed, precipitated or colloidal):
Crude Crude mineral Unrefined Refined Triturated (ground)
Sulphur: Sublimed, precipitated or colloidal Flowers of sulphur
Sulphur under 25.03 should be described as ‘crude’ and ‘other’, and only called ‘refined’ If specifically stated. The term ‘refined’ sulphur usual(y refers to chemically pure sulphur and is shown under 28.02 and should he called ‘sublimed and precipitated’.
TALC
522.2 28.02
NOTE:
278.9 25.26 Natural steatite Soapstone Powdered steatite F‘yrophyllite
Talc
TANTALUM AND NIOBIUM
287.8 26.15 Ores and concentrates: Tantalite Tantalo-niobate ores Columbium (niobium) ores and concentrates Columbite Niobite Pyrochlore
Unwrought tantalum and alloys Waste and scrap
Shown as described in trade account
689.1 81.03 Tantalum
699.9
689.9
81.03
81.12
Wrought tantalum and alloys
Unwrought niobium (columbium) and alloys Waste and scrap
72
Niobium
0 0
0
0 0 0
0
0 0 0
0
0
0
0 0
0 0
0
0
0 0 0
0 0
0 0
0 0 0
0
0 0
0
0
81.12 Wrought niobium (columbium) and alloys
Tin slags (tantalum bearing) See also ferro-allo-vs
TIN
699.9
288.1 26.20 NOTE:
Tin slags
Ores and concentrates: Stannite (tin pyrites) Cassiterite
1 } Concentrates }
287.6 26.09
687.1 80.01 Unwrought tin: Bars, slabs, sticks, blocks, ingots, lumps, pigs, etc.
i } Unwrought }
Unwrought alloys
Scrap
687.1
288.2
80.0 1
80.02
Alloys
Waste and scrap
TELLURIUM METAL
TITANIUM
} } Titanium minerals } (ilmenite. rutile and } leucoxene shown separately } where possible)
26.14 Ores and concentrates: Ilmenite Rutile Leucoxene Anatase
287.8
26.14 Titanium sand Titanium sand 287.8
287.8 Rutile sand Titanium and rutile sand should normally appear under the above codes but some countries show then under 178.9 and 25.30.
Rutile sand 26.14 NOTE:
278.6
288.1
689.8
699.8
522.5
533.1
26.19
26.20
81.08
Titanium slags 1 } Titanium slag 1 Ash and residues containing mainly titanium
Unwrought titanium and alloys Waste and scrap
1 } Metal 1 1 81.08
28.23
32.06 NOTE:
Wrought titanium and alloys
Oxides 1 } Oxides } Pigments based on titanium oxide/dioxide
See also ferro-allo-ys.
TUNGSTEN
287.9 26.11 Ores and concentrates: Wolfrainite Scheelite Ferberite Hubnerite
} } Shown as described } in trade account 1 }
689.1 81.01 Unwrought tungsten and alloys I
73
} Metal 1 }
Waste and scrap
Wrought tungsten and alloys
Ammonium paratungstate (APT)
Carbide See also ferro-alloys.
699.9
524.3
524.9
81.01
Ammonium paratungstate 28.41
Carbide 28.49 NOTE:
URANIUM
286.1
525.1
26.12 Uranium ores and concentrates
Uranium metal, crude, enriched, and depleted This code also includes other radioactive materials e.g. plutonium and thorium in various forms
28.44 NOTE:
VANADIUM
287.8 26.15 Ores and concentrates: Descloizite Patronite Roscoelite Vanadinite
There is no trade in vanadium ores and concentrates (1996).
} } } Ores and concentrates f f
.4TOTE:
278.6 26.19 Slag, dross. waste etc. suitable for the extraction of vanadium
} f Vanadiferous residues } 1 26.20
28.25
72.01
Vanadiferous residues 288.1
522.6
671.2
Oxide, hydroxide and pentoxide
Vanadium-titanium pig iron
Pentoxide
Vanadium-titanium pig iron
Unwrought and wrought vanadium and alloys Waste and scrap See also ferro-alloys.
} Metal 1
689.9 81.12
NOTE:
VERMICULITE
27.89
287.5
25.30 Vermiculite
ZINC
26.08 Ores and concentrates: Smithsonite (zinc carbonate) Zincite (zinc oxide) Calamine Blende (zinc sulphide)
Unwrought zinc: Ingots, blocks. billets, lumps, pellets, slabs etc.
1 } } Ore/ores and concentrates } 1
686.1 79.01 } Unwrought 1
686.1
288.2
79.01
79.02
Alloys
Waste and scrap
Unwrought alloys
Scrap
74
e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
287.8
287.8
689.8
699.8
m e :
26.15
26.15 NOTE:
81.09
81.09 NOTE:
ZIRCONIUM
Ores and concentrates: Baddeleyite (zirconium oxide) Zircon Zirconium silicate ore
3 } Concentrates 1 1
Zirconium saiid Zirconium sand Zirconium saiid should normally appear under the above codes but some countries have been found to show it under 278.9 and 25.30.
Unwrought zirconium and alloys Waste and scrap
Wrought zirconium and alloys See also ferro-alloys.
Trade codes are liable to be modified on an annual basis.
75
3 } Metal 1 1
e