In 1985, 947 billion gallons of water were contaminated with 1.4 billion pounds of chemical reagents in froth flotation separation of industrial minerals in the United States. It is estimated that these approximate quantities were also used in 1986 and 1987. Of this total, approximately 42.2 million gallons of water were contaminated with 8.6 million pounds of chemical reagents in vermiculite froth flotation separation.In the Phase I study, the technical feasibility of replacing froth flotation with magnetic separation was successfully demonstrated for vermiculite processing. The Phase II work proposes to continue the investigation in an effort to develop a processing circuit that minimizes and/or eliminates the chemical reagents now used in froth floatation.This work could have a significant impact on reducing environmental problems. It could also have a significant impact on the future of vermiculite processing by creating a more cost effective position for the United States in the world vermiculite market. The technology developed in this work can serve as a new technology in other mineral industries.Commercialization is projected in terms of the development of a cost effective separation technology for vermiculite and the reduction of toxic wastes. Success would mean major advances in reducing environmental problems, and the development of a new separation technology that could have application in other mineral industries.