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By Leons Kovisars

Introduction Competitive analysis is the collection and evaluation of data on a product, a product line or on an entire industry. Much of the focus of competitive analysis centers on production volume and the price targets of the competitors. In actual practice capacity may be used in place of production volume. Similarly, unit production costs and individual producing units - mines, mills, smelters, refineries - may be the targets of the analysis. The purpose of competitive analysis is to provide information for strategic planning. The analysis will locate the position of the company in the industry and define the competitive margin -- or lack of a margin - between the company and other producers. The analysis can show the current situation and may be expanded to examine the outlook for the future. The forecast option is particularly valuable because it will show the opportunities for new project development or the expansion of current production. Similarly, the forecast will show the potential threat from new entrants, and may provide early warning to reconsider operations that may become uncompetitive in the future. Production cost analysis is a clearly understood means to evaluate producers and estimate the outlook for their profitability. The cumulative cost for the industry outlines the supply structure and defines the marginal cost of production used in developing price forecast as explained in the sub- sequent section of this paper. Competitive analysis is particularly important to the mining industry, notably to metal producers. The final product is typically a purified metal conforming to standards, and interchangable with the output of other producers, i.e. a fungible commodity. Brand loyalty is questionable in the mineral industry. Consumers will show a preference for specific brands, but this preference will be limited to a premium of several percent over the general market price. Price and assurance of supply are the keys to marketing success. Assurance of supply depends on geopolitical considerations and production capabilities. Price will be closely related to cost of production and a thorough competitive analysis should describe the cost structure of the industry. This snapshot will locate one's own position and provide an immediate and readily understandable evaluation of the hazards and opportunities inherent in this position. In the following section we shall discuss elements, methods and sources for competitive evaluation. ELEMENTS OF COMPETITIVE ANALYSIS The practice of systematic collection and analysis of data on competition is hardly a new concept; see, for example, Wall (1) or Porter (2). However, most discussions have been in the context of conventional industrial or manufacturing industries, with a focus on product lines and brand marketing. These considerations are not irrelevant to mining but they do have only a limited application. The key to success in the mining industry is minimizing the cost of production. However, this simple concept becomes complex when we consider relevant costs and the planning horizon. Production costs include the factors consumed in production, namely labor, fuel, energy, materials and supplies. The cost also includes purchased and contracted services such as freight, smelting and refining, sampling and sales required to convert ore to the finished metal. Royalties and ad valorem taxes paid on gross production are direct expenses, as is the cost of administration required by the production units. The sum of these outflows is the total cash cost, the expense that has to be paid in cash in order to continue production. Indirect costs incurred by a producer will commonly include allocated headquarters expenses, as well as the capital charges associated with equity investment and debt. Profit is not generally considered an indirect cost even though it represents the cost of using the owner's capital; similarly, income taxes represent the government's participation in the profits of the enterprise. Interest payments are considered as a direct expense in some cost studies, but many competitive evaluations would consider

Jan 1, 1985

By Eugene McAuliffe

SINCE 1917, the bituminous coal industry has surged, violently at times, across the nation's social, industrial and economic foreground. To-day a silent, yet more active, force is working within the industry, and the movement now taking place, if allowed to continue, will cause serious consequences when coal is again wanted at the rate of 550,000,000 tons annually instead of at the rate of 400,000,000 tons, the apparent requirement for 1921. I refer to the shift of tonnage from the highly unionized fields of Pennsylvania, Ohio, Indiana and Illinois to the non-union fields of Pennsylvania, West Virginia, Alabama and certain western states, and to the so-called union fields in Kentucky and Colorado, on which the union saddle rests lightly. This movement, in the absence of the usual winter transportation shortage, is taking place rapidly and will be accentuated if, as is probable, work is suspended in the union mines on March 31 next. This drift of tonnage has been made possible by the unit wage reductions in the non-union fields and by the modification of the so-called conditions that have been saddled on all mines wherever the United Mine Workers have gained a foothold; these changes permitted the first reduction in mine cost, which made possible the securance of contracts; better running time assisted in making further reductions, and the transfer of ton-nage served to increase the unit cost in the field from which it was transferred. This situation not only opposes the highly unionized operation but brings about a transfer of traffic from the roads serving such mines to those that serve in a primary or secondary manner the more favored localities. The net result is evidenced in (a) the migration of union labor to the non-union mines; (b) the deteriora-tion and decadence of union properties; (c) the neces-sary curtailment in the purchase of new equipment and in the maintenance of existing equipment and track facilities on the part of the carriers serving the union fields. This, in turn, when business is restored to normal or to the point above normal that invariably follows an adverse swing of-the business pendulum, will cause (d) a shortage of coal and coal transportation facilities; (e) an era of coal speculative debauchery with exorbitant prices and serious deflection in the matter of quality; (f) a period of labor unrest followed by de-mands for increased wage rates supplemented by a marked loss in individual efficiency, with, resultant strikes, business unrest, and the pressure of new eco-nomic theories. In 1918, the labor status with respect to relative tonnage produced was approximately as follows: pro-duced in highly organized fields, 62 per cent.; produced in partly organized fields, 21 per cent.; produced in unorganized fields, 17 per cent. During the strike of November and December, 1919, the mines that remained at work attained 35 per cento of the nominal production of soft coal, a situation made possible by the migration of union labor to non-union mines and the concentration of the nation's coal trans-portation facilities on the rails of the carriers serving the non-union fields. The history of the efforts made by the carriers to untangle the car scrambling which took place during this period and which sent the self clearing battleship type of car into western territory where it could not be readily unloaded, and the western gondola type of car to New England and the seaboard, is yet painfully recalled. -This confusion proved a serious factor in the coal car shortage that continued throughout the following year. We are drifting toward a similar situation now, propelled by economic forces rather than by a sudden strike.

Jan 1, 1922

By George W. Crawford, W. P. Aycock, E. W. Hough

Forty oilfield brines have been examined so far by a polarographic technique new in petroleum engineering called the "tensatnmetric method" by the team of biochemists who perfected its use in their field. Samples of brine were obtained from various oil fields in which the wells were known to be producing fluid from oil productive zones in well-known geologic formations. Most of the reservoirs from which the samples were obtained are believed to have an active water drive under the prevailing conditions of operation. The 40 samples represent brines produced front 16 different formations of various geologic ages. Graphs have been prepared of the data obtained in the testing of each sample, and the distinctive waife-like curves so obtained are characterized by reproducible profiles, called "response curves." Careful comparison of the response curves of salt water coming from different fields producing from the same geologic formation reveals that the curves are similar. The response curves of salt water coming from productive zones of different geologic formations are characteristically different. Preliminary work offers the further hope that response curves of an oilfield brine indigenous to a particular oil-bearing formation and hence representative of a particular geologic environment, such as deposit-ional and all subsequent morphological conditions, may be of value in reservoir engineering in the interpretation of surface and interfacial phenomena. For example, the wettability of the rock matrix and more specifically, the classification of productive oil-bearing strata as hydrophyllic or hydrophobic may be determinable. However, many more brines must be examined and the resulting response curves analyzed in comparison to known causal phenornena before this objective is achieved. INTRODUCTION One of the perennial moot questions in the literature of petroleum engineering is whether the reservoir rock is oil- or water-wet. Possibly an answer to this question could come from a careful examination of oilfield brines. None of the conventional methods of examining brines (chemical analysis, pH and electrical conductivity measurements, and the like) answer the question. Careful analysis of reservoir behavior observed in the exploitation of oil fields, particularly in the application of fluid injection, has been fruitful to the extent that a few reservoirs are believed to be properly classified. Physical chemistry suggests the behavior of reservoir brine and rock may be due to something in the brine in small amount. The ever increasing development and modification of theory in the general field of surface and interfacial chemistry has, and is, contributing to a better understanding of the problem, particularly as theory is verified by data. The work herein reported was begun in 1953 by Hough and Roebuck 1,2 who employed a new form of alternating current polarography, i.e., tensammetry, developed by Breyer, et a13,4 and who studied eight oilfield brines in adapting tensammetry to petroleum engineering needs. THEORY AND DEFINITIONS Tensammetry is a new technique of inquiry into surface phenomena. Specifically, a weak alternating current voltage is superimposed upon the direct current voltage applied to a dropping mercury electrode in contact with an electrolyte containing a small amount of a surfactant. The resultant alternating current can be measured and provides the experimental data for this new area of research. Under the influence of the direct current voltage, polar molecules arrange themselves in a double layer at the electrode. This double layer may be compared to a variable condenser, the capacitance of which is a function of the imposed direct current voltage. The direct current voltage determines the degree of adsorption of the surface active molecule on the electrode. Whenever the molecules are strongly adsorbed on the electrode, the capacitance of the double layer is low and the alternating current through the cell is low. Desorption occurs at some values of the direct current voltage, and at these voltages the capacitance of the double layer is high, resulting in an increase in the alternating current through the cell. The direct current

Jan 1, 1958

By A. T. Corey, J. H. Henderson, M. R. J. Wyllie, C. H. Rathjens

The results of three-phase relative permeability tests on nine water-wet consolidated Berea sandstone samples are presented as composite ternary diagranls showing isoperms of oil, water and gas. Capillary pressure control was exercised over the flow of gas and oil in the presence of water. The water saturations ranged from 17 to 71 per cent pore volume. A method of calculating both the oil and water permeabilities of a three-phase system from the easily measured gas relative permeability is presented. EXPERIMENTAL PROCEDURE AND RESULTS A renewed interest has been shown in three-phase relative permeability as a result of recent developments involving underground combustion processes, steam injection, and other multiphase displacement processes. The experiments and results described here involved simultaneous flow of oil and gas in consolidated Berea sand with brine present as the wetting phase. Gas and oil relative permeabilities were measured on nine cores with CaC12 brine present as the wetting phase in saturations ranging from 17 to 71 per cent. The average residual liquid saturation of the cores was approximately 20 per cent. In order to make certain that brine was the wetting phase, the test cores were saturated with brine before contact with hydrocarbons. As an added precaution to avoid having oil displace brine from the wetting position as a result of changing wettability, each core was only used twice, i.e., first with a fixed percentage of brine and then for a gas-oil permeability determination with no brine present. The results, therefore, are presented as composite ternary diagrams representing the flow tests on nine individual cores having very similar properties. All tests were made using a modification of the capillary pressure techniquc described elsewhere. The effective oil permeability was measured before gas was introduced using a very small pressure gradient (a few centimeters of oil). This determination was made without selectively wet barriers in contact with the core. The cores were then placed between capillary barriers and gas-oil relative permeability curves obtained. The capillary barriers had been made water repellent with a silicone treatment. In determining gas-oil-water relative permeability in this fashion, control was exercised over the capillary pressure existing between the gas and oil. No control was exercised over the pressure difference existing between the oil and water. Athough an equal pressure gradient was applied to the gas and the oil phases, this pressure gradient does not exist in the water phase. Since the pressure gradient across the core was always much less than the displacement pressure of the fully saturated core, the pressure gradient can have caused only a very slight distortion of the oil-water interfaces. This slight distortion of the oil-water interfaces had a negligible effect on the validity of the oil permeabilities measured. The oil permeability, measured in the presence of water but with no gas present, was in every case equal. within experimental error, to the gas permeability of the gas-oil system when the oil saturation was the same as that of the water. Gas and oil relative permeabilities were plotted as a function of total liquid saturation. It was found that the gas relative permeability curves obtained on cores with brine present were identical with those obtained on the same cores with no brine present. The denominator for calculating oil relative permeabilities was the permeability found by extrapolation to infinite mean pressure (A la Klinken-berg). Fig. 1 illustrates gas-oil relative permeability results obtained on a typical core. The solid permeability curves represent the experimental data. The dashed oil relative permeability curve was calculated using the relationship;

Jan 1, 1957

By W. Rostoker, H. Nichols

It has been demonstrated in previous work1'2 that wetting of aluminum alloys by liquid mercury can cause fracture to occur with substantial suppression of prior plastic flow. This has been interpreted as the action of a critical liquid species in reducing the cohesive strength of a stressed solid at sites of potential crack nucleation. In this way the critical transverse stress for fracture nucleation is reached at much lower stresses than is normally the case. The stresses for both fracture nucleation and fracture propagation are depressed by the same mechanism. In so doing the plastic-energy component of fracture energy is reduced to a level which is of the same order of magnitude as the surface, interfacial, or cleavage energy. Recent work2 has illustrated the influence of dispersed precipitates, cold work, and combinations of these on brittle fracture associated with plastic strains of the microyield order of magnitude. This has been rationalized in terms of the contribution of internal microstress fields to the stress magnifications at points of obstruction of active slip bands in a stressed metal. The presently reported studies on an Al-4-1/2 pct Mg alloy amplify this subject by introducing thermal-mechanical conditions which can produce strain aging. As amply demonstrated by Phillips, Swain, and borall, the tensile behavior of aluminum alloys containing magnesium reveals a yield-point elongation and successive discontinuous elongations over the whole plastic-strain range. This gives a stepped or serrated character to the stress-strain diagram. The yield-point elongation is not temperature-dependent. On the other hand, the discontinuous extensions in the plastic-strain range are gradually suppressed by lower temperatures of testing. At -78"C, only the yield-point elongation persists. The yield-point elongation itself can be suppressed by rapid quenching to room temperature from an annealing temperature of 500°C. The argument presented by Phillips et 1. and Cottre114 is that the yield-point elongation derives from surmounting at a critical stress the restraint to slip by grain boundaries which have been reinforced by appreciable magnesium-atom segregation. The serrated character of the plastic-strain range is the result of rapid strain aging during the test. This is made possible by the inevitable proximity of magnesium atoms to any dislocation line. In the Al-4-1/2 pct Mg alloy there is one magnesium atom for every twenty-two aluminum atoms and, with a coordination number of 12, a magnesium atom is on the average only about two atomic distances from any given lattice site. Rapid strain aging is therefore a reasonable expectation. A study of mercury embrittlement of the Al-4-1/2 pct Mg alloy (commercial designation 5083) provides an opportunity to relate the interplay of grain size, grain boundary restraint to slip and strain aging in the brittle-fracture process. One lot of commercial sheet material of 0.125-in. thickness was used for all of the tests. The specimen shape and test procedures used were the same as those described in a previous publication.2 A range of grain sizes between 0.0057 and 0.0125 mm was produced by various combinations of plastic prestrain and annealing. The coarsest grain was somewhat elongated in shape. In this case the measurement was taken in the direction transverse to the axis of tension as more meaningful to a brittle-fracture process. In the annealed condition, specimens wetted with mercury failed with zero permanent elongation at stresses slightly below the normal yield point, i.e., stresses at 0.05 to 0.2 pct strain. Since this occurs before yield-point elongation can begin, fracture derives from slip contained within individual grains and restrained from propagating across grain boundaries. No significant difference in wetted fracture stress was observed between specimens which had been water-quenched or furnace-cooled from the annealing temperatures. This signifies that the degree of magnesium segregation at grain boundaries

Jan 1, 1964

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By J. C. Van de Water

In June the supply of M3 army demolition powder being used for mudcapping was depleted and we switched to 4 by 8, 60% Special Quarry Gelatin dynamite. This size cartridge has proved convenient, as a half stick will handle the average boulder. By keeping the gelatin in the paper while cutting it in two, there is little contact with the gelatin and therefore fewer headaches among the powdermen. To further help prevent the headache nuisance the men are furnished with plastic coated gloves. Boulder breaking costs as reported last year were $0.426 using M3. This year, 8180 boulders have been broken with M3 at a cost of $0.472 each and 7479 with 60% Quarry Gelatin at a cost of $0.660 each. This rise in cost is due entirely to the greater cost of the Gelatin as the method has not changed.

Jan 4, 1950

By Whitman E. Brown, Louis J. Erck

L. A. ROE*—This paper is one of great value to the iron ore industry. The Humphreys spiral is a relatively new tool and gives promise of being quite useful in solving certain problems of iron ore beneficiation. Spirals have been tested on a martite ore at the Benson mine of Jones and Laughlin Steel Corp. in northern New York State. Our New York ore is considerably different, physically and mineralogically, than the one mentioned in this paper, and contains only 25 pct iron. This ore can be processed on spirals to give a concentrate containing 62 pct iron with an 85 pct recovery. On our particular ore we found operating difficulties when the spiral feed was coarser than 14 mesh. These were chiefly due to excessive "build-up" of locked middlings in the spiral circuit. In extreme cases these middling particles would accumulate to such an extent that the plant had to be shut down and the spiral surge tanks cleaned out. It is interesting to note that there exists a close relationship between the results of tabling a given iron ore and concentration of this same ore on Humphreys spirals. The size range of the ore must, of course, be within those limits acceptable to spiral concentration. Comparative tests on several of our mar-tite ores showed tabling results to be the same as spiral results. The authors make no mention of the use of a tailing stream splitter (now available from the spiral manufacturer) which is a useful tool in studying iron losses in the tailings stream. 011 our particular martite ore we found a considerable accumulation of fine-sized iron ore particles in the outside portion of the tailings stream. This fraction may be amenable to further treatment. E. H. ROSE*—The authors have concluded an interesting piece of work and this paper is an excellent factual account of a rapid and somewhat unusual transi-;ion in practice in the plant described. Perhaps it was modesty on their part which caused them so casually to limit to one sentence the fact that "several other methods of concentration on the fine ores representative of the Hill Trumbull group . . . failed to produce consistently an acceptable grade and recovery of finished product." The fact is that they were confronted by a difficult mineral-dressing problem and they are to be congratulated on their courage and persistence in staying with it until a satisfactory solution was evolved. A visitor to the plant might have been mildly astonished, as I was, to see one type of concentrator handling that part of the load early in the 1947 season, its experimental replacement by another a little later, and then in 1948 to see that both types had simply disappeared and their place taken by the spirals which were operating as placidly as though they had been there all the time. In working out economic methods of beneficiating Alabama red ore, most of which development is still ahead of us, it is likely that we also will pass through a period of successive disappointments, for we too have a problem where it is next to impossible either to "guess 'end right in the first place," or, because full-scale operating cost is such an important factor, to lay the ultimate answer on the line in advance by means of laboratory experimentation. Iron ore being what it is instead of what it used to be, it is encouraging to have the example the authors have given us today that a tough nut that will not crack on the first blow or the second is apt to do so on the third or fourth.

Jan 1, 1950

By F. S. Jr. Norcross

MANGANESE has long been considered one of the United States' most important strategic raw materials. Its indispensabil-ity in steel manufacture makes it vital to the nation's industrial life. Coupled with this indispensability is the fact that domes-tic producers have not been able as yet to supply more than a small part of the nation's manganese needs; consequently the United States has had to depend upon such distant foreign sources as the U.S.S.R., British India, the African Gold Coast and Brazil for the major portion of its ore. The great bulk of the mineral is con-sumed in the form of ferromanganese, an alloy that averages 8o per cent manganese and 20 per cent mainly iron and carbon. Manganese is used as a deoxidizer and desulphurizer in steel manufacture. By combination with the residual oxygen and sulphur of the bath, it helps to produce a clean, sound metal. Approximately 14 lb. of manganese, it is estimated, is used in making one ton of steel. For standard-grade ferromanganese, the ore should have a minimum of about 48 per cent Mn and preferably more. Beneficiation methods have not yet been developed for making the immense low-grade deposits in the United States salable at prevail-ing prices.

Jan 1, 1940

By F. S. Jr. Norcross

MANGANESE has long been considered one of the United States' most important strategic raw materials. Its indispensabil-ity in steel manufacture makes it vital to the nation's industrial life. Coupled with this indispensability is the fact that domes-tic producers have not been able as yet to supply more than a small part of the nation's manganese needs; consequently the United States has had to depend upon such distant foreign sources as the U.S.S.R., British India, the African Gold Coast and Brazil for the major portion of its ore. The great bulk of the mineral is con-sumed in the form of ferromanganese, an alloy that averages 8o per cent manganese and 20 per cent mainly iron and carbon. Manganese is used as a deoxidizer and desulphurizer in steel manufacture. By combination with the residual oxygen and sulphur of the bath, it helps to produce a clean, sound metal. Approximately 14 lb. of manganese, it is estimated, is used in making one ton of steel. For standard-grade ferromanganese, the ore should have a minimum of about 48 per cent Mn and preferably more. Beneficiation methods have not yet been developed for making the immense low-grade deposits in the United States salable at prevail-ing prices.

Jan 1, 1940

By N. J. Grant, Masao Adachi

A number of Cu-SiO, and Cu-A1203 alloys of low oxide content, produced by internal oxidation of copper-silicon and copper-aluminum dilute solid solutions, were exposed at temperatures up to 1050°C for fairly long times to bring about partial or total re crystallization. The creep-rupture properties of these re crystallized alloys were compared to those in the as-extruded condition at 450° C. Some of the alloys were cold worked after re crystallization to note changes in creep-rupture properties, also at 450OC. SINCE the introduction of the SAP alloy in 1949,~ many studies have been carried out on similar oxide and intermetallic dispersion hardened alloys to determine properties and to establish the mechanisms involved in the strengthening process which led to stable, high-temperature behavior.'-' To date, it has been indicated that, however achieved, the structure should be composed of a continuous ductile metal matrix in which is dispersed a fine, submicron size, hard, insoluble second phase (or at least, essentially insoluble at temperatures very near the melting point), with a submicron or near submicron interparticle spacing. Stored energy, obtained by a high strain rate deformation process appears desirable, as an additional strengthening means beyond pure dispersion.=

Jan 1, 1961

By W. A. Hooker

This portion of Mexico is quite beyond the ordinary routes .of travel, and is seldom visited. Its mines have not the record of enormous wealth which has recently attracted foreign capital to other parts of the republic; but for many centuries it has been a mining country, and at some periods evidently a productive one. In 1881 the writer visited the State and spent some time in the inspection of the mines. The absence of published information regarding its mining industry is his apology for presenting to the Institute these notes on the subject. Oaxaca is, with one exception (Chiapas), the most southerly of the Mexican States. It extends from latitude 18o 20' to 15' 45' N.— about 180 miles, by some 300 miles, in an east and west direction, and embraces a large part of the Isthmus of Tehuantepec. The coast-line is wholly on the Pacific. The State has an area of 27,470 square miles, nearly that of the State of Maine, and a population estimated at one million, or thirty-six to the square mile. The great continental Cordillera which farther north and west expands into broad table-lands, is here converged into narrower limits and occupies the greater portion of the country; the main

Jan 1, 1887

By R. P. O’Shea

AS part of a program to investigate phase relationships in ternary systems containing semiconducting elements and compounds, an X-ray survey of alloys in the system Pb-Te-Bi was carried out which revealed that the pair PbTe-Bi probably formed a quasibinary system. This portion of the ternary was examined fully by thermal analysis, X-ray, and microscopic procedures. More than twenty-five alloys were made by melting together the proper combinations of the elements in quartz tubes at a temperature of 1000o C. The compositions which were high in PbTe content were prepared in evacuated, sealed, quartz tubes, allowed to freeze in vacuum, and then transferred to Crucibles for thermal analysis. The bismuth-rich alloys were made directly in the crucibles under a protective gas cover. The starting elements were obtained from the American Smelting and Refining Co. and had a purity greater than 99.99 pct. Cooling curves were made with about 50 g of alloy in graphite crucibles which were placed in a covered quartz container in which a protective atmosphere of helium or nitrogen was maintained. The thermocouple protection tube was made of mul-lite and served as a stirring rod when connected to a reciprocating stirring motor. Temperatures were

Jan 1, 1962

By Ed L. Reed

INTRODUCTION The most efficient development of a mine plan for in-situ leach (solution) mining must be based upon an understanding and application of the basic hydrologic characteristics of the aquifer containing the mineral values. Similar knowledge of the overlying and underlying aquifers is also required. This paper summarizes the hydrologic properties of a ground water system and describes some of the more important conclusions that can be drawn from a detailed hydrologic study. Basic to an in-situ leach mining operation is the flow of fluids through porous rock from place to place. The degree to which these movements of fluids can be predicted and controlled determines to a large extent the efficiency of the ore recovery operation. HYDROLOGIC CHARACTERISTICS The principal hydrologic characteristics of a porous medium (sand, intercrystalline or vuggy limestone, fractured basalt, etc.) influencing fluid flow are: Porosity Permeability Thickness Transmissivity Storage Coefficient Water Table or Piezometric Surface Hydraulic Gradient Briefly these parameters can be defined as follows: Porosity: the void space in a unit volume of rock. Permeability: the ease with which fluid will flow through a porous medium. Thickness: the height of the formation which contributes flow to a well. Transmissivity the product of permeability and thickness. Storage Coefficient. the volume of water released from the reservoir per unit drop in head. Water Table or Piezometric Surface: the level at which water will stand in a well: the top of the zone of saturation in a gravity aquifer; the height to which water will rise above the confining bed in an artesian system. Hydraulic Gradient the direction and rate of dip of the water table or piezometric surface. A properly designed pumping test will provide numbers for transmissivity, storage coefficient and the water table or piezometric surface. Drilling records or bore hole logs provide aquifer thickness data from which permeability can be calculated. Ground elevations applied to measured depths to water enable one to calculate the direction and rate of dip of the water table or piezometric surface. Porosity can be determined from core analyses or density logs; it can be estimated from grain size distribution curves in sands or sandstones and from, microscopic examination of drill cuttings derived from carbonate aquifers. CHARACTERISTICS OF FLUID FLOW The characteristics of fluid flow that are vital to an understanding of leach mining include: Velocity Direction Flow Path Radius of Influence The velocity of fluid flow is of paramount importance in planning and managing a leach mine operation. Velocity is directly proportional to the permeability and hydraulic gradient and indirectly proportional to the effective porosity The permeability determined from a pumping test is an average value for the interval stressed; therefore, the velocity calculated from data derived from a pumping test represents average conditions. Under actual conditions discrete portions of the aquifer open to the screen may have permeabilities several times as high as the average and minimum permeabilities only a fraction as much. An injection front will be irregular to the extent that the reservoir rocks are heterogeneous An important consideration is the direct relationship of velocity to head. A reservoir which would provide a velocity of 0.05 feet per day under conditions of equilibrium would allow fluid flow of 36 feet per day under typical leaching operations, i.e. 12-foot injection head, 12-foot pumping level and 50 foot five-spot pattern. The direction of fluid flow is also vital both inside and outside the mine area. In the pattern area the direction of flow is determined by the geometry of the well field and can be approximated by mathematical modeling techniques. Outside the well field, the direction of flow is influenced by both natural conditions and the degree to which production and injection volumes are balanced. Flow directions (and velocities) are critical to an understanding of leachate excursions and their control.

Jan 1, 1979

By Elton A. Youngberg

J. H. HEARDING, Jr.*—Extremely hard ferruginous chert (taconite) was encountered in driving a drift at the Fraser underground mine near Chisholm, Minn., on the Mesabi Iron Range. In order to get better results in drilling in this ground, it was decided to try tungsten carbide bits. In the beginning, 1½ in. tungsten carbide bits and 1 1/8 in. round-lugged alloy steel drill rods with "jack-stud" inserts were used. Considerable difficulty was encountered because the jack-stud became loose in the drill rods. Because there was not enough alloy steel drill rod on hand, we began to insert jack-studs in the ordinary high carbon drill rods and found, to our surprise, that there was less trouble with jack-studs working loose in these rods than there had been with the alloy steel rods. As a result, use of the alloy steel rods has been discontinued entirely. Under the heading "Drilling Procedures" the statement is made that all holes are started with detachable bits or conventional steel to prevent undue strain on the tungsten carbide bit inserts when collaring a hole on uneven ground. This practice was followed in our work originally for the same reason. It was soon found, however, that the holes could be started with the tungsten carbide without injuring the inserts if the drill operator was careful and did not give the drill too much air until the bit had a chance to seat itself in the rock. J. C. FRANZ*—In a discussion of other technical papers with reference to percussion drills and the use of carbide tungsten bits, it was my impression that the authors reported one of the first difficulties experienced with the use of standard, conventional percussion drills, was insert bit failures due to crushing of the bit inserts when the bits became dull. During the past few years, some of the rock drill manufacturers, I am told, have adopted an air drill for use with the carbide bits that have a lighter blow and faster rotation than the regular machine. This machine has been tested and the carbide bit failures have been considerably reduced. L. W. DUPUY†—The difficulties Mr. Youngberg mentions that were had with rod and coupling breakage call to mind similar troubles experienced at the Picacho mine in California near Yuma.6 The commercial couplings then available were found to be tempered almost to brittleness. Rod breakage was usually in the threads near the end of the rod. The highly-tempered couplings would break as soon as the rod broke. The solution was to thoroughly anneal the couplings and to put in only a very mild temper. Subsequently the alloy used in making the couplings was changed from the original by the manufacturer, but still only a very mild temper was used. The result was that the softer coupling would give but would not snap and release its hold on the broken rod thread. Fishing jobs were reduced to the few where the rods broke at the rod end of the thread. Thread breakage on the rods was further reduced by thorough annealing prior to tempering. The data Mr. Youngberg presents regarding the use of carbide inserts on long blasthole drilling is most interesting and it would appear that the use in this manner of percussion drills and carbide bits will have many applications. W. M. WOODWARD*—How many feet of hole, on the average, do you get from a tungsten carbide bit, and is there much variation from this average? E. A. YOUNGBERG (author's reply) —In recent months the 2 in. tungsten carbide bit footages in long hole drilling hake varied from 115 .to 140 ft monthly. The footages obtained from individual bits vary from several feet to over 300 ft, however the life of a majority of the bits will be within 25 ft of the average.

Jan 1, 1950

By Christian F. Baiz

INTRODUCTION Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. One of the outstanding differences is the understanding of the many different markets that these industrial minerals represent. There are in excess of 30 principal industrial minerals ranging in terms of annual production from the largest quantity such as sand and gravel, to possibly the smallest quantity of production of a legitimate industrial mineral which may be defined as industrial and rough gem diamond. (See Tables 1 and 2) Project finance techniques, analytical methods, and information requirements are covered elsewhere in this Chapter and Chapter 10. Some comments on equity finance aspects follow. EQUITY AMOUNT The amount of equity in a financing transaction provides a cushion to the lender in case the project runs into trouble. Generally speaking, the greater the amount of risk in a project, the more equity a lender will require. The amount of cash equity in a project financing transaction is between 25 and 40 percent. The amount of leverage (debt/equity) is negotiable based on such factors as the strength and extent of the sponsor's undertakings, of the project's economics, and the term of a strong sales contract. Naturally, a borrower seeks to obtain d loan with as little equity required as can be negotiated. Zero percent equity is usually associated with a take-or-pay contract (a hell-or-high- water unconditional commitment under which the purchaser must pay for the commodity as though it were shipped regardless of whether it is actually mined or shipped) with a financially strong corporate entity i.e., the parent company or an end user. As a take-or-pay contract is tantamount to a guarantee of payment, the banker views the credit basis of the loan as being other than the borrower's mining operation and therefore will analyze the creditworthiness of the institution purchasing the commodity on the basis of its corporate balance sheet. Do not confuse a take-or-pay contract with a take-if- tendered or take-and-pay contract. Another means in the United States of obtaining zero percent equity is the carved out production payment financing, typical of coal mine financing. This involves the sale, or conveyance, by the owner of the mineral property of a production payment to a nominally capitalized company. The nominally capitalized company is formed solely to buy the production payment and usually borrows 100 percent of the purchase price from a lender. Equity amounts of 10 to 20 percent generally are found in transactions which employ techniques such as an advance sale or a subordinated lease/loan. These agreements are viewed as quasi equity by most banks for several reasons. First, the proceeds represent a cash infusion early in the project's life - usually prior to the bank lending any funds. Thus, the repayment schedule is "behind" that of the bank debt. In the case of an advance sale, repayment is in the form of a long-term supply contract with favorable terms, usually priced close to the mining operation's costs. There is also usually a requirement that all costs of the project be paid for by the loan or equity, often making the sponsors financially responsible for any cost overruns. Cost overruns are a major risk in any project, large or small, and are often due to unforeseen factors such as wildcat strikes, a piece of faulty equipment, or any event which delays completion, e.g., remote location, weather, etc.. . The question of how overruns are covered can be negotiated. For example, in addition to the original debt/equity ratio of the project, there can also be a cost overrun ratio that will

Jan 1, 1985

By A. N. Khayyat, R. G. Temple, R. Skelton

The fluid energy mill has been in use since the 1930's when an early patent was granted to N.H. Andrews in the USA. The microniser design has been basically unaltered since that date and current designs such as the Airfilco "Micronizer" have been progressively developed from results based on wide experience. The authors have been engaged in a research programme to establish optimum design and operational parameters for the Micronizer so as to provide a more quantitative basis for scale-up prediction of results. An introductory section will first trace the development of fluid energy milling including reference to other designs which have developed alongside the micronizer (especially the “Jet-o-miser"). With regard to design features the number of fluid injection nozzles and their size was investigated to establish the optimum range. Injection angle and, the consequent diameter of the internal "tangential circle" was carefully studied to determine the effect of this parameter on product size. The research was carried out using fine limestone as the test material with air as the grinding medium. Feed size fractions of 0-120µm, 0-250µm, 0-500µm, and 300-600µm were milled and product size analyses were carried out using the Coulter Counter technique.

Jan 1, 1980

By Scott Howard

MANGANESE being perhaps the least expensive of the metallic alloying elements that can be advantageously added to iron in considerable quantities, the basic characteristics of its alloys with iron are properly receiving much attention at present. In the course of a dilatometric investigation of this system several years ago, the writer observed certain transformation phenomena not found in other iron-base alloys. The interpretation of those effects was not evident from the information then available, but recent X-ray studies clear up at least one anomaly and permit a more satisfactory description of the results than would have been possible otherwise. Aside from the new phenomena observed, the effect of manganese on the Ar3 transformation is of timely interest because of its bearing on the critical compositions of austenitic alloys, the applications of which are now being greatly extended. It is known that the properties of these alloys are unstable unless the Ar3 transformation occurs at a temperature considerably below atmospheric and that manganese is very effective in depressing the temperature of this transformation. The writer aims to establish a simple general relation which expresses the location of Ar3 quantitatively in terms of the content of the common alloying elements used in steel. A step in that direction is taken here. Early dilatometric investigations1 indicated that only one transformation other than the eutectoid A1 occurs in the high-iron alloys of the iron-manganese system. Dejean represents the Ar3 point as falling to 0° C. with a manganese content of 11 per cent and carbon content of between 0.30 and 0.40 per cent. Esser and Oberhoffer,2 using alloys low in carbon (under 0.03 per cent), arrived by extrapolation at 14 percent for the manganese content at which Ar3 is depressed to 0° C. Not until both low carbon contents and alloys having a manganese content

Jan 1, 1931

By H. H. Pentz

This paper gives the derivation of a practical formula for the calculation of slopes in seismic reflection prospecting. The derived formula is an approximation and can be used where the slope of the reflecting horizon is less than 250 ft. per 1000 and the depth to the reflecting horizon is greater than 2500 ft. The slope of sediments in oil regions is generally considerably less than 250 ft. per 1000. This is particularly true of the Gulf Coast, with the exception of the salt domes, which usually have the sediments at a greater slope than 260 ft. per 1000. Derivation In Fig. 1, o represents the image of the shot point a. Then the length of the path acb is equal to ob and ae'd is equal to od. In the triangle aob, p is equal to ob, x is equal to , and c is equal to ao. The angle u is the apparent dip of the reflecting horizon. Angle oab is equal to (90" - u). The quantity m is the slope of a line tangent to the curve, defined by equation 1, at the point (p, x). The quantity m' is the slope of the line tangent to the curve at the point (p', 2').

Jan 1, 1940

By H. H. Pentz

This paper gives the derivation of a practical formula for the calculation of slopes in seismic reflection prospecting. The derived formula is an approximation and can be used where the slope of the reflecting horizon is less than 250 ft. per 1000 and the depth to the reflecting horizon is greater than 2500 ft. The slope of sediments in oil regions is generally considerably less than 250 ft. per 1000. This is particularly true of the Gulf Coast, with the exception of the salt domes, which usually have the sediments at a greater slope than 260 ft. per 1000. Derivation In Fig. 1, o represents the image of the shot point a. Then the length of the path acb is equal to ob and ae'd is equal to od. In the triangle aob, p is equal to ob, x is equal to , and c is equal to ao. The angle u is the apparent dip of the reflecting horizon. Angle oab is equal to (90" - u). The quantity m is the slope of a line tangent to the curve, defined by equation 1, at the point (p, x). The quantity m' is the slope of the line tangent to the curve at the point (p', 2').

Jan 1, 1940