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By William P. Blake

The occurrence of enormous masses of pure copper has given the mining district of Lake Superior worldwide reputation. The first masses brought from there excited great attention, and directed the notice of the mining world to the few particular mines from which they were taken. It may not now be generally known that nearly all the veins which are worked, and which cut across the trap ridge, contain mass copper, and that large masses are continually being raised from them. The largest continuous mass which has been taken out was probably that from the Minnesota, in 1857, which is variously stated as weighing 420 tons and 470 tons. Its length was about 45 feet, its breadth or height 22 feet, and its greatest thickness 8 feet. All such masses are very irregular and ragged in their form and thickness, thinning out generally from a foot to a few inches, and straggling through the vein until they connect with other large masses. This was the character of a mass found in the Phœnix Mine, one of the oldest on the lake, which mass altogether weighed some 600 tons. But this was really a series of masses more or less connected by strings of metal, yet no one large part of it weighed, singly, over 200 tons. A similar series of masses, weighing about 600 tons, was extracted from the Miunesota. Some of the Phœnix masses were four to five feet thick of solid copper. The Cliff Mine has yielded masses weighing from 100 to 150 tons in one piece. One of 40 tons was taken out this year, besides numerous blocks weighing from 1 to 8 tons. This mine and the Central are now yielding mass copper in abundance. It is, bf course, impossible to pick, or drill, or to break out such huge masses of solid metal when they are found, by drifting upon the course of the vein. The method of extraction is as follows: The miner picks out or excavates a narrow passage or chamber upon one side of the mass, laying it bare as far as possible over its whole surface. It is usually firmly held by its close union with the veinstuff, or by its irregular projections above, below, and at the end. If it cannot then be dislodged by levers, the excavation of a chamber is commenced behind the mass, and this excavation is made large enough to receive from 5 to 20 or more kegs of powder. In one

By John Chipman, Karl L. Fetters

Tax relationship between the composition of the slag and that of the underlying metal during the refining of a heat of liquid steel may best be studied in the light of the two broad physicochemical concepts of equilibrium and reaction rate. Actual steelmaking processes, typified by basic open-hearth practice, involve such complexities of operating variables that it is impossible to distinguish with any degree of certainty between the general limiting conditions imposed by chemical equilibrium and the effects associated with rates of diffusion or of chemical reaction. Further advances in the physical chemistry of steelmaking will depend upon our ability to distinguish clearly between these two kinds of effects, and the experimental work that must be done falls naturally into two classifications. The first is the study of chemical equilibrium that cannot be carried out with assurance under operating conditions but must be done in the laboratory. The second is the subject of rates of reaction and diffusion and the mechanism of the process as a whole, which can best be studied under operating conditions. The latter is not entirely independent of the former, since its interpretation often requires a knowledge of the equilibrium state. It is the purpose of this and of several papers that will follow to present the results of laboratory investigations of equilibria involving liquid steel and slag. Open-hearth slag is a complex mixture containing at least eight major components and perhaps twice as many whose influence may be classified as probably minor. It is not surprising that progress toward a complete understanding of such a material at high temperatures has been slow. Attempts to apply the established principles of physical chemistry to the behavior of the individual components of this mixture have been beset by an almost complete lack of data on its chemical properties in the liquid state. This has necessitated the adoption of various methods of approximation based upon such assumptions as, for example, that for a given component the ratio of its mol fraction in the slag to that in the metal is a constant, or that the molecular composition of the liquid slag is the same as its crystalline constitution after solidification. From the thermodynamic viewpoint, such assumptions are merely useful dodges, which enable one to hazard a guess as to the magnitude of the more fundamental quantities, the chemical potentials and activities of the components of slag. The problem of determining the activity of each substance in an eight-component system seems too complex to be undertaken without the aid of generalizations derived from experimental data on similar systems containing a smaller number of components. Accordingly, it was planned in the present investigation to study the equilibrium of molten iron with the simplest

Jan 1, 1941

By P. H. G. Durville

ANY metal which contains even a small percentage of aluminum possesses certain peculiarities of appearance and properties which are exhibited both when the metal is melted and after it solidifies. Pure aluminum, or an alloy containing a small proportion of aluminum, can be melted without flux-except for a layer of charcoal-because a film of aluminum oxide and metal forms at the surface of melted aluminum. Although very thin, this film is air-proof, and it prevents the metal underneath from oxidizing. This oxidized film does not move easily on account of its toughness and high surface tension. One very important point in connection with this process of still casting has not been strongly enough stressed, namely, that the same kind of surface film with the same peculiarities forms over the surface of all melted alloys that contain even a small proportion of aluminum. Experienced foundrymen know how desirable it is to cast aluminum under its "skin" or under the surface of the film which tends to remain still. In the case of red copper, when in fusion, the surface shows pure copper only. This is due to the fact that liquid copper constantly absorbs the copper oxide which forms on the surface. By closely examining melting copper the oxide can be seen dissolving in the bath, and going into solution just as pulverized sugar dissolves in water. When copper is cast in the open, either in wire bars or cakes, the surface of metal exposed to the air is covered by a film of black, oxide that cannot be absorbed by the metal.

Jan 1, 1927

By A. B. Kinzel

MUCH work has been done recently in an attempt to analyze the physicochemical mechanism involved in the production of steel by the open-hearth process. . This has resulted in reducing the process to a series of interrelated phenomena obeying the usual laws of mass action and diffusion. Of these, the reaction of the iron oxide and carbon in the molten steel is of most interest from a technical point of view as it con-stitutes the main action in the usual steelmaking processes. A. L. Feild1 has formulated a basic differential equation expressing the open-hearth reactions and Hefty has done considerable experimental work on the determination of a number of constants involved in the basic open-hearth reaction. In considering the application of the law of mass action. to the reaction FeO +C ?? CO +Fe, the iron will be taken as constant, as is the case in the open hearth and the carbon monoxide pressure will be assumed' constant at one atmosphere. From this xy = m at equilibrium, where x is the percentage weight of carbon, y percentage weight of iron oxide and m the weight-concentration equilibrium constant. While it is customary for physical chemists to express equilibrium constants in terms of molar concentrations, the constant is here expressed as the product of the percentage-weight concentrations for ease of comparison with the constants quoted by Herty and by Feild, and for more ready applicability to the open-hearth reactions. Herty and his associates have attempted to calculate the value of this constant from data on open-hearth heats. So many variables affect these results that an adequate calculation presents very great difficulties. A value of 4 X 10-2 was first arrived at, but this was later changed to 1.6 X 10-2. Feild, in order to illustrate the operation of the differential equation of the open hearth, has assumed a value considerably lower than Herty's, namely, 1.0 X 10-2, the largest value consistent with certain theoretical

Jan 1, 1929

By John V. Beall

Back in the days when it was possible to tell one sports season from another, the football season began the last Saturday in September and ended on Thanksgiving Day for most teams. There were one or two post-season bowl games on New Year Day; but that was it. Actually, ten weeks of football, counting preseason practice, was about all a player could stomach without going stale. Not that the boys were any softer back then; quite the contrary, a good player usually played 60 minutes of ball. We must admit that we played lots of football in those days too---but not on Saturday. Particularly we remember the Monday after the Saturday when Columbia beat the Georgia Tech team which was led by the great back, Frank Sinkowitch, by a score of 7 to 3. That Saturday Mr. Little actually played 14 men: that is there were three backfield substitutions, each of which was for a few minutes only. Georgia seemed to have a progressive coach because he alternated two squads by quarters.

Jan 1, 1970

By O. G. Paasche, Yuan-Shou Shen

THERE is a disagreement among the various authors about the exact manner of transformation of ZrCr2. Rostokerl and others2 stated that ZrCr2 had a C-14 (MgZn2) type of structure below 1000°C and a C-15 (MgCu2) type of structure at temperatures above 1000°C. Alisova3 and others4 reached the opposite conclusion and stated that the transformation temperature is close to the melting point of ZrCr2. A literature survey shows that various investigators3'= who homogenized the specimens at a temperature higher than 1000°C have concluded that ZrCr2 had the C-15 structure at room temperature. Meanwhile, Jordan et al.4 reached similar conclusions without annealing the specimen. Other investigators1,2,6,7 who X-rayed the specimens in the as-cast condition without annealing reached different conclusions. The investigation reported herein was conducted with the aim of exploring the exact manner of transformation of ZrCr2 by various heat treatment tests. The alloys for this examination were prepared from iodide-reduced zirconium crystal bars, 99.9 pct purity, and electrolytic chromium, 99.9 pct purity. They were melted in a nonconsumable electrode arc furnace with water-cooled copper crucible in a helium atmosphere. The melting loss of each alloy was less than 1.5 pct by weight. Chemical analysis of a randomly selected specimen indicated that there was a very close agreement between calculated and analyzed compositions. Before being heat-treated each specimen was encapsulated in a vycor or quartz tube inside which an argon atmosphere was maintained at a pressure of lower than 1 atm. In determining the crystal structure of each specimen with a Debye-Scherrer camera, the standard procedure8 for X-ray quality analysis (Hanawalt method) was followed. The different series of heat treatment tests in this investigation are tabulated in Tables I and 11. The tests in Series I, specimens from 1-1 to 1-9, which were similar to Rostoker's experiment1 indicated that the transformation temperature seemed to fall between 870° and 900°C and that the crystal structure of ZrCr2 at lower temperature seemed to be of the C-14 type. However, once the compound is transformed to C-15 type, it is impossible to reverse the transformation back to the C-14 type by first heating the specimen above 900°C and then annealing it slowly below 900°C as shown in Experiments II-1 to II-3. Thus, it appears that the specimen of ZrCr2 will transform from C-14 to C-15 structure when heated above 900°C but will not transform from C-15 to C-14 when annealed slowly passing 900° C even after the extremely slow cooling process such as indicated in the experiment of Specimen II-3. As a valid transformation temperature is a temperature at which the transformation is reversible, therefore the temperature 900°C (or other temperature close to 900°C) is not the transformation temperature for ZrCr2 and the C-14 structure is not the stable structure of ZrCr2 at lower temperatures. The C-14 structure is retained at room temperature because the transformation to C-15 structure is very sluggish and the fast cooling after melting does not allow enough time for the transformation to take place. Additional energy is required to alter the metastable condition of the C-14 structure. The sluggishness of this transformation was again demonstrated through another series of experiments. Four specimens with C-14 structure were taken. Then they were annealed at 900°C but each specimen was soaked for a different period of time, Table 11. X-ray diffraction patterns of this group indicated that the C-14 structure gradually disappeared as the soaking period was lengthened. The figures listed under the column "C-14 Structure, pct" were estimated from the intensity of the d = 2.330 line of the diffraction pattern corresponding to the structure. Notice that the intensity of this line became weaker for longer soaking periods. To determine the transformation temperature of ZrCr2, specimens with C-14 structure (as-cast condition) were annealed at 1300°, 1400°, 1500°, 1550°, and 1600°C, respectively. A final specimen was first heat-treated to 1500°C in order to transform it to C-15 structure, then heat-treated at 1600°C again. From the X-ray analyses of this series of tests, Specimen Nos. III-1 to III-6, it is evident that a transition from C-15 structure at lower temperatures to the C-14 structure occurs at some temperature between 1550° and 1600°C.

Jan 1, 1969

By John L. Schroder, Woods G. Talman

EXPERIENCE has shown that certain known natural conditions and other indefinite characteristics combine to make a mining area vulnerable to mountain bumps. Some of the known conditions are heavy overburden, an overlying stratum of strong non-elastic rock, a structurally strong coal seam that does not crush easily and yet is the weakest stratum in the series, and a floor stratum of more than ordinary firmness. The indefinite characteristics could include resistance of top or bottom of a coal seam to lateral flow, effect of immediate top and bottom strata, nature of the coal seam, and other factors about which very little is known. It is in this area that exhaustive study is needed to achieve positive control of the dreaded mountain bump hazard.

Jan 8, 1958

By S. Fukushima, E. Kimura

In the Mitsubishi beneficiation process of ilmenite, chlorine is regenerated in the dechlorination furnace where the gases produced from a selective chlorination of ilmenite are directly introduced. The present paper describes a reaction mechanism and mixing characteristics of the reactant gases for dechlorination of ferric chloride with oxygen. A furnace of a small diameter where the reactant gases passed through in the state of nearly plug flow was used for determination of the effects of temperature and of partial pressures of ferric chloride and oxygen on the rate of the reaction. The experimental data of the reaction rate were applied to various models for calculations of the rate equations and the most suitable reaction model was determined. The results of the experiments also showed that effects of gas mixing onto the reaction rate could not be ignored, so that experiments of gas mixing was carried out. Gas flow patterns and scale effects were observed with use of transparent model furnaces of different sizes.

Jan 1, 1976

By W. R. Roser, F. E. Rizzo, Wu Hu

An insight into the mechanism of electrocrystallization of copper in simulated commercial acid electrolytes has been surmised from scanning electron microscope analysis of laboratory prepared specimens. The growth takes place in three overlapping stages. In he first, lasting approximately one hour at 200 amps/sq m, a propensity to epitaxial growth is observed. During the second stage a preferred orientation developed. The crystallography of the deposit showed a strong preferred orientation with the [111] direction normal to the surface. Triangular pyramids with (111) faces and (111) texture is a common result. In the third stage, occuring at longer deposition times, side growth, dendrite-like branching is common. The obsermtions have some elements in common with published results for highly purified electrolytes. Several significant differences were observed. The truncated pyramidal and block type growth discussed in he literature is suppressed under the conditions studied. The results are briefly discussed in terms of the screw dislocation, fault, and layer type growth mechanisms of crystal growth.

Jan 1, 1973

By Joseph Jensen

When the legal holders of Government permits in the Middle dome of Kettleman Hills entered into an agreement on May 27, 1929, to suspend all drilling activities on five permits, covering portions of the Kettleman Hills Middle dome, until Jan. 1, 1931, and the owners of fee lands contiguous thereto assured Secretary Ray Lyman Wilbur, of the Department of the Interior, that they too would respect a drilling suspension for a period of a little more than 19 months, none of these interested parties realized that this was the first step in a chain of events that would culminate, more than four years later, in the formation of the Middle Dome Corporation for the development of the Middle dome area in a unit plan that would be the first unit plan to be approved by the California Regional Producers Committee and recommended to the President as a satisfactory unit plan, under Section 7 of Article III of the Oil Code, approved Aug. 17, 1933. Neither did they realize that more than two million dollars would be spent before oil or gas would be successfully and continuously produced from wells drilled on that Middle dome area. On Oct. 1, 1933, under the terms of the Middle Dome Agreement, the Middle Dome Corporation assumes control of activities and is responsible for the division of all product's produced from the Middle dome area to members of the Middle Dome Corporation. This Middle dome plan is the second successful unit plan developed in California in the past three years, the first being the Kettleman North Dome Associationll formed under the agreement, of Jan. 31, 1931, for the unified operation and development of more than 12,000 acres of land on the North dome of the Kettleman Hills. All other unit plans discussed in the past four years in the state have not yet been completed, for one reason or another, but under Section 7 of Article 111 of the new Oil Code numerous plans of development, some of which may be unit plans, will be forthcoming within the next few months. There is much

Jan 1, 1934

By Jesse Betterton

IN the Parkes process of lead refining, after desilverization has been completed by means of zinc additions, there will remain in the lead from 0.5 to 0.6 per cent zinc. At this stage in the refining practically all impurities are reduced to refined lead specifications except zinc and antimony. All excess of copper and nearly all the arsenic goes out with the silver. Silver remaining should not exceed 0.1 oz. per ton. It thus remains only to remove zinc and antimony to produce refined lead. The older practice was to complete refining by means of oxidation processes in reverberatory furnaces. Essentially this consisted of heating the lead to 1200° to 1300° F. and allowing it to come in contact with a considerable excess of air passing through the furnace, or accom-plish the same result by blowing the lead with steam by means of pipes introduced for that purpose, at the same time allowing air to enter the furnace. Usually some procedure involving alternate oxidation and reduction with fine coal or coke was employed in order to reduce the weight of dross or skim finally removed from the furnace. This practice had many elements of weakness in that the main flow of lead, after the preceding expensive operations had been performed, and the whole refining process nearly completed, was subjected to an operation at a comparatively high temperature, which involved much lead loss if the furnaces were not on bags, and the production of 3 to 5 per cent of the weight of the lead as dross or skim, which had to be resmelted and the lead either refined or produced as antimonial lead. In addition, the operating expense of the process was a considerable item. The, process of dezincing with chlorine was developed as a substitute for the foregoing described oxidation process, and finally resulted in such advantages as nearly equal operating costs, a practical elimination of the lead loss, and the direct production of a very valuable byproduct, zinc chloride, that may be sold as such or retreated for its zinc and chlorine contents, both of which can be reused in the refining processes.

Jan 1, 1933

HAVING already shown you the methods of making the moulds for casting and how they are to be prepared so that they may receive the melted metals well, it is now necessary, in order to complete the casting with perfection, that I show you not only the operations and instruments by which metals are softened, but also how metals can be made as liquid and fluid as water so they may easily enter into all the hollows of the moulds that you have made. Of these, besides the fire which is the prime agent, there is a very powerful furnace, which is called a reverberator.* I believe this is chosen not only for convenience but also because it is necessary in large casts. This is made of baked bricks, or of crude ones if desired or of suitable fire-resistant stones. Although all masters have the same objective, each one proceeds to make this kind of furnace according to his own ideas so that it can be said that there are almost as many different shapes of such furnaces as there are masters. This can be seen in the place that contains the metal, which is of such a shape that the force of the fire may operate better. Thus some masters are called good who, seeing no farther than what has been shown them, make them circular like a bread oven. Some others make them oval across the fire en- trance, while others extend them lengthwise. Also, there are some who make a single outlet for the flames, some two, and some three. Some make the entrance for the fire high and narrow and others, wide and low. The same is true of the place where the flames are generated, which is called the firebox. Some put the wood in from the side, some lengthwise in the same direction as the entrance for the flames, and some from above by means of a little hole. Also, one makes the vault low, and another makes it high. And while one puts an entrance for air underneath so that the

Jan 1, 1942

By Norman F. Schulz, Emert W. Lindroos, Strathmore R. B. Cooke

DURING the course of an investigation of the effects of various starch products on hematite and quartz in regard to their separation by flotation, it was found that whereas most starches flocculated suspensions of hematite in water, they did not flocculate similar suspensions of quartz. However, a derivative of whole corn starch containing approximately one tenth aminoethyl group (-—CH,CH2NH2) per glucose unit proved to be an exception. This aminoethyl starch was a very good flocculant for both hematite and quartz, and also possessed the property of depressing both minerals in cationic flotation tests. In view of the widespread use of starch as a flocculating agent of solids in tailing water, pulps, and for coal slimes, ore and various other purposes in sulphide and nonsulphide flotation, attention is called to the effective surface activity of aminoethyl starch in flocculating suspensions of the two minerals investigated. Test Materials The starch products employed included Globe Pearl starch No. 144 and fresh aminoethyl starch, both supplied by the Corn Products Refining Co. Dr. A. L. Elder" has kindly furnished a description The minerals used in the various tests are listed in Table I. Their specific surfaces were determined by the air permeability method, which gave results reproducible to within plus or minus 3 pct. Surface areas obtained by krypton adsorption were greater than the air permeability values by a factor of 2.0 for quartz and 62.4 for hematite. Starch Adsorption on Mineral Surfaces Starch adsorption data were obtained by agitating for 1 hr measured volumes of neutral starch solutions of known concentrations with weighed quantities of finely divided mineral of measured specific surface. The mineral then was separated from the pulp liquor by centrifugation and the residual starch content determined by chemical analysis. The analytical procedure consisted of oxidizing the starch with an excess of dichromate in acid medium at elevated temperature and titrating the excess dichromate by the ferrous ammonium sulphate—potassium permanganate method. Analytical results were reproducible to within less than 1 pct. Adsorption data obtained in unbuffered solutions near the neutral point are plotted in Fig. 1. The adsorption on either mineral was far greater for the aminoethyl starch than for the Pearl starch. Flocculation The degree of flocculation was determined for a given pulp by measuring the time required for the supernatant liquid to reach a certain degree of clarity. This was accomplished by passing a standard light beam through the pulp, contained in a glass settling tube, and measuring the time required after agitation ceased for the intensity of the transmitted beam to reach a predetermined value. Starch reagent was added to each pulp in small uniform increments, and the settling time was determined after each such addition. Increase in pulp liquor volume due to the added starch reagent was ignored in these tests. Pulps were maintained at or near neutrality. of the preparation of the aminoethyl starch: "Three hundred and sixty grams of powdered unmodified corn starch was slurried in 3 liters of water and stirred during gelatinization. Eighty-six grams of ethylenimine was added slowly during reflux which was continued for 4 hr. The yellow solution set to a gel upon cooling. This was broken up and neutralized with HC1. The thick paste was dried on hot rolls. Adsorbed polyethylenimine and salts were removed from the yellowish products by washing first with acidified aqueous '60 per cent' alcohol. The white product contained nitrogen corresponding to about one aminoethoxy group per ten glucose residues." Only laboratory samples of this starch derivative have been prepared. The starch reagents for use in flocculation, flotation, and adsorption tests were made up by dispersing the appropriate quantities of air-dry starch in cold water, adding boiling water, and heating for 30 min at 120°C under pressure. When used ip adsorption tests, the starch solutions first were cleared of insoluble matter by centrifugation.

Jan 1, 1953

By Strathmore R. B. Cooke, Emert W. Lindroos, Norman F. Schulz

DURING the course of an investigation of the effects of various starch products on hematite and quartz in regard to their separation by flotation, it was found that whereas most starches flocculated suspensions of hematite in water, they did not flocculate similar suspensions of quartz. However, a derivative of whole corn starch containing approximately one tenth aminoethyl group (-—CH,CH2NH2) per glucose unit proved to be an exception. This aminoethyl starch was a very good flocculant for both hematite and quartz, and also possessed the property of depressing both minerals in cationic flotation tests. In view of the widespread use of starch as a flocculating agent of solids in tailing water, pulps, and for coal slimes, ore and various other purposes in sulphide and nonsulphide flotation, attention is called to the effective surface activity of aminoethyl starch in flocculating suspensions of the two minerals investigated. Test Materials The starch products employed included Globe Pearl starch No. 144 and fresh aminoethyl starch, both supplied by the Corn Products Refining Co. Dr. A. L. Elder" has kindly furnished a description The minerals used in the various tests are listed in Table I. Their specific surfaces were determined by the air permeability method, which gave results reproducible to within plus or minus 3 pct. Surface areas obtained by krypton adsorption were greater than the air permeability values by a factor of 2.0 for quartz and 62.4 for hematite. Starch Adsorption on Mineral Surfaces Starch adsorption data were obtained by agitating for 1 hr measured volumes of neutral starch solutions of known concentrations with weighed quantities of finely divided mineral of measured specific surface. The mineral then was separated from the pulp liquor by centrifugation and the residual starch content determined by chemical analysis. The analytical procedure consisted of oxidizing the starch with an excess of dichromate in acid medium at elevated temperature and titrating the excess dichromate by the ferrous ammonium sulphate—potassium permanganate method. Analytical results were reproducible to within less than 1 pct. Adsorption data obtained in unbuffered solutions near the neutral point are plotted in Fig. 1. The adsorption on either mineral was far greater for the aminoethyl starch than for the Pearl starch. Flocculation The degree of flocculation was determined for a given pulp by measuring the time required for the supernatant liquid to reach a certain degree of clarity. This was accomplished by passing a standard light beam through the pulp, contained in a glass settling tube, and measuring the time required after agitation ceased for the intensity of the transmitted beam to reach a predetermined value. Starch reagent was added to each pulp in small uniform increments, and the settling time was determined after each such addition. Increase in pulp liquor volume due to the added starch reagent was ignored in these tests. Pulps were maintained at or near neutrality. of the preparation of the aminoethyl starch: "Three hundred and sixty grams of powdered unmodified corn starch was slurried in 3 liters of water and stirred during gelatinization. Eighty-six grams of ethylenimine was added slowly during reflux which was continued for 4 hr. The yellow solution set to a gel upon cooling. This was broken up and neutralized with HC1. The thick paste was dried on hot rolls. Adsorbed polyethylenimine and salts were removed from the yellowish products by washing first with acidified aqueous '60 per cent' alcohol. The white product contained nitrogen corresponding to about one aminoethoxy group per ten glucose residues." Only laboratory samples of this starch derivative have been prepared. The starch reagents for use in flocculation, flotation, and adsorption tests were made up by dispersing the appropriate quantities of air-dry starch in cold water, adding boiling water, and heating for 30 min at 120°C under pressure. When used ip adsorption tests, the starch solutions first were cleared of insoluble matter by centrifugation.

Jan 1, 1953

By B. Thomas Mansbach

INTRODUCTION The Overseas Private Investment Corporation ("OPIC") is a U.S. Government agency mandated to promote the economic development of the less developed countries ("LDCs") by assisting U.S. private investment in the Third World. Generally, investment decisions turn on the optimism or pessimism of the private sector's financial analysis of a project, with market price of product a major unknown in a very chancy set of projections. Discussions with American mineral companies, however, show that, more often than not, in developing country projects it is the political risks of investing in mineral exploration and extraction that pose the most serious deterrent to investment. In several of the projects described here, investments would not have been made if OPIC had not been involved providing support to the project sponsors and their funding sources. Clearly it is not OPIC's business to promote U.S. investment in a project which is not commercially viable, but OPIC's programs can neutralize the political uncertainties which act as disincentives to investment in otherwise commercially viable projects. That is to say, OPIC's programs are designed to reinforce market decisions and not distort them. Although OPIC is an independent agency of the U.S. Government, it is managed by a Board of Directors, the majority of whom come from the private sector. This, coupled with the statutory requirement that it be self-sustaining and operate with due regard for the principles of prudent risk management, requires that it operate on a business-like basis. Although established as a development agency, to the business public OPIC is both an insurance company and a lending institution, with two major programs which are available to U.S. investors in the minerals sector: its political risk insurance program and its finance program. Each has been specially tailored to the meet needs of the mining industry. The insurance program provides coverage against four basic types of political risk: Currency Inconvertibility, Expropriation, loss caused by War, Revolution and Insurrection and Interference with Operations as a result of an act of War, Revolution or Insurrection. Coverage against the risks of Civil Strife can be added to both War, Revolution and Insurrection coverage and Interference with Operations. Inconvertibility coverage provides protection against a deterioration in an investor's ability to convert local currency into U.S. dollars. This deterioration can be the result of either active or passive delays. Active delays consist of a change in exchange laws or regulations that leads to inconvertibility delays of 30 days or more. For example, if the exchange regulations at the time of contract execution allow an investor to transfer earnings equal to 18% of its registered capital per annum and the government of the host country later changes the law to allow conversion of only 12%, the insured would convert the 12% transferable under the new exchange regulations with the government foreign exchange authorities, delivering the remaining 6% to OPIC for conversion at 99% of the then prevailing rate of exchange. (OPIC does not cover devaluation risks.) Upon delivery of the local currency to OPIC, normally at the U.S. Embassy in the project country, the insured's account in the U.S. would be credited with dollars. Delays can also result from what is termed passive blockage, which includes administrative delays of more than 60 days (sometimes longer) caused by the bureaucratic tie-ups or pigeonholding of transfer requests, as well as delays suffered simply because the government of the host country does not have sufficient foreign exchange. The transfer procedure is the same as with active blockage - the local currency is delivered to OPIC in the project country and OPIC provides dollars in the United States at the then prevailing rate of exchange. The second coverage -- Expropriation -protects not only against the loss of the investment due to the well-known risks of expropriation, nationalization or confiscation by the host government, but also against

Jan 1, 1985

By Joseph E. Pogue, F. G. Coqueron

Prior to 1934, published information covering expenditures by oil companies for properties, plant, and equipment and the residual investments in the various segments of the petroleum industry was not readily available. This paper presents an analysis of the funds invested by a selected group of oil companies during the years 1934 through 1942, based on an extensive study of the individual records of 30 oil companies. The sources, disposition, and characteristics of the capital employed by this group of companies are traced through a series of combined statements and appropriate charts, covering financial and operating data. The analysis of these statements not only constitutes a record useful for comparative purposes but also serves as a basis for a number of broad conclusions, as follows: 1. The petroleum industry generates the capital needed for its expansion almost entirely from its own operations and is therefore a singularly self-contained economic unit. 2. The long-term debt contained in the financial structure of the industry is small relative to the total capital employed, is less than the net working capital, and has increased but slightly during the period under review. 3. The capital expenditures of the group of 30 oil companies for 9 years amounted to 6.1 billion dollars, 58.3 per cent of which went into crude-oil producing facilities. The trend of this segment of expenditures has been downward since 1937. In 1942, expenditures for refining facilities increased sharply and for marketing facilities declined drastically. 4. The net working capital of the group increased 380 million dollars over the period, and the industry is in a favorable position of liquidity. The ratio of combined current assets to current liabilities was 3.21 at the close of the period. 5. The net income of the group displayed an upward trend for the period but with rather sharp cyclical fluctuations. 6. In 1942, Government funds entered the industry for the first time in substantial amounts and were utilized for the provision of war facilities needed for emergency use. 7. The group has paid out a relatively low percentage of net income in the form of dividends. For the period the average was 55 per cent of net income. 8. The rate of return on invested capital for the group averaged 6.4 per cent for the

Jan 1, 1944

By Ralph Wilcox

The diamond drilling of certain characters of unstable rock formation, as, for example, the copper-bearing schists of the Miami district in Arizona, is rendered most difficult by what is known as a caving " of the sides of the drill holes. As this caving is very greatly increased by the action of flowing water, it occurred to me, after experiencing a great deal of difficulty with caving in diamond-drill holes which I was drilling for the Miami Copper Co., that if I could substitute air for water, much of the caving—with resultant difficulties, such as decreased speed of sinking and increased consumption of diamonds—would be overcome. After some experimenting, I found that it was perfectly practicable to substitute air for the water; forcing the air down the hollow rotating rods in the same manner as is done with water, the air passing out around the bit, which is thus cooled, and ascending on the out~ide of the rods to the collar of the hole, carrying the borings in just as satisfactory a manner as had been done by the water, but without the accompanying destruction or caving of the sides of the drill holes such as had been so generally experienced with the water. When water was encountered in the drilling this water was forced up to the collar just as it would have been had water been used in the drilling, but with the correspondingly decreased flow there was relatively less washing or caving of the sides of the drill holes. The only change necessary in the arrangement of the drill is that a cross instead of a tee is used at the collar of the hole. A tightly woven jute bag is attached to one arm of the cross, for collecting and filtering the sample; and when drilling in dry ground a jet of water is attached to the opposite arm of the cross, to collect the dust and wash down the sample into the bag. The rods rotate through a stuffing box attached to the upper opening of the cross. The distention of the jute bag by the issuing air indicates the operating conditions as sufficiently as did the flow of water when using water in the drill hole. The small percentage of core recovery rendered it necessary to

Jan 1, 1914

One of the very simplest losses to overcome, and at small expense, is belt slip. To show the extent of the loss of money through slipping of the main belt alone, a chart, supplied us through the courtesy of the Cling-Surface Co., Buffalo, N. Y., is shown herewith, upon which this is easily ascertained. By glancing up and down column "D" of this chart it is evident that the "Cost of Avoidable Belt Slip per Year in Dollars" may vary all the way from the smallest sums into the thousands of dollars. Roughly, 2 per cent. of the potential power in the driving pulley of the engine is represented by "belt creep." Its loss is unavoidable because of the elasticity of the belt. This has been recognized and provided for in the chart, so the reader can go ahead and connect known values, while the intersection with column "D" gives the avoidable money loss. Simply zig-zag across the chart twice with a straight edge, as shown by the dotted lines and the money loss is immediately found. Thus if the total belt slip is 6 per cent. (column A) and the cost of coal per ton is $4 (column B), run a straight line through those two points and locate the intersection with column "C." Then from that point of intersection run over to the tons of coal burned per year (which in this instance has been stated as 1000 tons) and the cost of avoidable belt slip per year is shown by column "D" as being $160. To give a clear idea as to the meaning of "Total Belt Slip Per Cent." let us take an example. You find by means of a revolution counter that a given driven pulley is rotating only 940 times per minute. You figure that without slip it should rotate 1000 times per minute; 60 revolutions per minute, therefore, are absolutely lost. Dividing this 60 by the r.p.m. that pulley should make you get 0.060 or 6 per cent. which is the "Total Belt Slip." After having made this determination, it is a simple matter to apply it to the chart as has been done and determine the money loss per year due to such slip.

Jan 4, 1918

By Joseph E. Pogue, F. G. Coqueron

Prior to 1934, published information covering expenditures by oil companies for properties, plant, and equipment and the residual investments in the various segments of the petroleum industry was not readily available. This paper presents an analysis of the funds invested by a selected group of oil companies during the years 1934 through 1942, based on an extensive study of the individual records of 30 oil companies. The sources, disposition, and characteristics of the capital employed by this group of companies are traced through a series of combined statements and appropriate charts, covering financial and operating data. The analysis of these statements not only constitutes a record useful for comparative purposes but also serves as a basis for a number of broad conclusions, as follows: 1. The petroleum industry generates the capital needed for its expansion almost entirely from its own operations and is therefore a singularly self-contained economic unit. 2. The long-term debt contained in the financial structure of the industry is small relative to the total capital employed, is less than the net working capital, and has increased but slightly during the period under review. 3. The capital expenditures of the group of 30 oil companies for 9 years amounted to 6.1 billion dollars, 58.3 per cent of which went into crude-oil producing facilities. The trend of this segment of expenditures has been downward since 1937. In 1942, expenditures for refining facilities increased sharply and for marketing facilities declined drastically. 4. The net working capital of the group increased 380 million dollars over the period, and the industry is in a favorable position of liquidity. The ratio of combined current assets to current liabilities was 3.21 at the close of the period. 5. The net income of the group displayed an upward trend for the period but with rather sharp cyclical fluctuations. 6. In 1942, Government funds entered the industry for the first time in substantial amounts and were utilized for the provision of war facilities needed for emergency use. 7. The group has paid out a relatively low percentage of net income in the form of dividends. For the period the average was 55 per cent of net income. 8. The rate of return on invested capital for the group averaged 6.4 per cent for the

Jan 1, 1944

Taking the Long View THE present international situation has serious implications for this nation. The possibility of total war is no more appalling than the threat of making the United States permanently into an armed camp. A period of ten years under such conditions could mean a Communist victory without firing a shot-if the present trend toward statism is allowed to continue. As individual citizens and as members of the mining profession we have the power to oppose the march toward socialism. We must not adopt shortsighted policies dictated by self-interest, but must endeavor to size up the situation as a whole and act according to what will be best in the national interest. The economic picture for the metal mining industry under present emergency conditions is apparently bright. Demand for metals exceeds supply. But there is danger that fluctuating prices will bring Government regulation. Care must be exercised in our pricing policies, or the calamity of Government intervention will be inevitable. President Truman's "loophole" reference to percentage depletion early in the year caused a brief flurry of excitement, but now that the immediate threat is over the industry has lapsed into sommolence on this subject. Special tax privileges accorded the mining industry because of inherent risks should be guarded by a continuing propaganda campaign to educate Congress and the public. If this is not done we may find ourselves losing the necessary tax protection which we now possess by a capricious act of legislation. Stockpiling minerals from abroad certainly lengthens the life of our own mineral resources. The present consumer demand for the base metals indicates foreign sources of supply for stockpiling. However, this is only one facet of the problem. For strategic military reasons it is necessary that the United States have quick sources of all minerals within our national boundaries. Undeveloped mineral deposits do not meet this need so that where it is possible to encourage our own mineral development by stockpile purchases, it should be done. A need exists for an overall controlling agency that would make purchases for the stockpile according to military necessity, current metal market conditions, and so as to strengthen the mining industry. In the course of the history of the United States we have been engulfed in several wars by the necessity of protecting our economic rights abroad trading privileges-and also because of moral obligations. Disregarding the moral side, it is difficult to reconcile fighting wars to protect world freedom of trade when in peacetime we attempt to restrain such trade by tariff barriers. When it comes to accepting subsidies from the Government in one form or another it is difficult to overlook the immediate personal gains and see in the future that where the Government lays out capital it becomes a partner in the business and not a silent one. It is apparent that hope for the traditional American way of life cannot be bought without some self-sacrifice; and we cannot wait for the other fellow to start it because it is the responsibility of each individual citizen. By taking the long view our course should be apparent and not diverge sharply from our own personal benefit.

Jan 10, 1950