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By Charles A. Ashburner

A very limited development has been made of the coal-fields of this Territory. This is to be accounted for by the fact that a number of the coal-fields lack railroad transportation, by the distance of other fields from the consumers (due to restricted settlements), and finally by the poorer quality of a number of coals which have been mined as compared to others which can be economically imported into the Territory. The consumption of coal in Utah during 1886, outside of that used by the railway companies, was: Tons. Utah coal,..........110,000 Wyoming coal,. .....19,000 Colorado coal,........* 4,945 Total,........... 133,945 It is estimated that there are 1100 miles of railroads in the Territory which use coal for fuel. The consumption of these roads for the year is estimated at 100,000 tons, making an aggregate consumption in the Territory of 223,945 tons. The consumption of coal in Salt Lake City duriug the year was as follows: Tone. From Grass Creek mines,.......21,000 " Pleasant Valley Company's mines,.. 12,700 " Utah Central Company's mines,.9,000 " Bock Spring mines,.6,500 " Almy mines .. ., .. .. . 6,000 " Miscellaneous sources,..5,800 Total ,.........60,000

Jan 1, 1888

By C. T. Sheeran, J. C. Franklin

A commercially available microprocessor-based system capable of monitoring 512 channels has been interfaced with monitors for radon, working level, air velocity, and fan power. The basic system utilizes both 280 and 8080 microprocessors in a desktop central processing unit (CPU). CPU hardware includes keyboard, video display (CRT), and disk drive; a printer is used to keep permanent data records. Signals from all channels are transmitted to the computer in digital form where they are processed for alarm status. Software developed for the system allows for audiovisual alarms in the event of low and high readings, rate change, change of state, or communica- tion failure. Up to six channels can be continuously displayed on the CRT for current readings. Shift reports and trend logs may be generated to help the ventilation engineer determine average working levels and ventilation effectiveness. Additional software permits the operator to program command sequences which may be used to automatically restart fans after a power outage.

Jan 1, 1982

By W. H. Blauvelt

THat the problem of utilizing anthracite waste is worthy of the thought bestowed upon it, may be shown in few words. In the year 1889, for instance, 35,408,000 tons of coal were sent to market from the anthracite regions of Pennsylvania. According to the report of the State Geological Survey, the amount of coal thrown on the dumps as waste, varies, with circumstancett, from 44 to 60 per cent. of that shipped to market. The lower of these figures represents 16,579,000 tons of waste for that year, and it is obvious that if this, or any considerable portion of it, could have been saved, it would have constituted an important addition to the fuel-supply of the country. It is not surprising, therefore, that so much attention has been given to the utilization of this waste. Among the many lines of experiment pursued with this object in view, the conversion of the carbon of the culm into producer-gas seemg at first to promise the most satisfactory solution of the problem. It is well known that in foreign producer-plants almost all kinds of

Jan 1, 1892

The Secretary of the Treasury, in a recent ruling, allows 18 months from date of discharge within which former service men may reinstate their Government insurance policies lapsed f or non-payment of premiums. The point just now confronting the Bureau of War Risk Insurance and all those who are interested in the immediate and the future welfare of the young men who offered their lives for the flag and the country is that they be kept mindful that the provisions of the War Risk Act were not solely war measures, but that the framers of the Act provided insurance protection for all time to come for the boys in uniform and all dear to them. Under this ruling those making application for reinstatement will be required to pay only the premium on the amount of insurance to be reinstated for the month of grace during which they were protected, and for the current month. When the men are mustered out of the service, the insurance continues in force for one month and they are fully protected during that period even if their premium has remained unpaid. In reinstating, that month's premium will be required as well as the premium for the month in which reinstatement is effected. The ruling also stipulates that when applying for reinstatement the man must be in as good health as at the date of discharge, and so state in his application. After complying with these simple requirements, a Government insurance policy may be made as sound as on the day it was written. The Bureau of War Risk Insurance is now searching out its delinquent policy holders and offering them this renewal of Government protection. It needs the assistance of public spirited, patriotic, business and professional men everywhere, for the sake of our former service men, who must be given the information about its privileges to which they are entitled.

Jan 9, 1919

By John D. MacFadyen

Subject paper unfortunately has some serious flaws negating the usefulness of the paper. The authors claim that sulfur is the major source of production problems in cement kilns. This is not the case. Sulfur is not a problem as long as the mole ratio of sulfur to alkali oxides is less than, or equal to, 1. This is attributed to the sulfur preferentially combining with the alkali oxides and not acting as a clogging agent due to the nature of the pre-heater vessels. Where the mole ratio exceeds 1, many methods are avail- able to eliminate or reduce the clogging problems such as using the preheater bypass or a precalciner with up to 100% kiln gas bypass. In non-preheater kilns, the presence of sulfates is hardly ever a problem anyhow. Thus, the level of sulfur in the fuel and raw material that might cause problems is not a fixed amount, but is predictable. The purpose of the paper is to discuss the economics of conversion of kilns in the Indonesian and Phillippine cement industries from oil firing to coal firing. This economic analysis has very little to do with the sulfur levels. Thus, the section of the paper on sulfates is actually rather meaningless. The economic analysis is also rather meaningless because the authors have failed to follow accepted economic analysis procedures by including interest charges. They have fallen into the trap of confusing financing with economic evaluation. When the accepted methods of economic evaluation are used, the return on investment increases to about 35%. In conclusion, the paper is not a meaningful contribution, and sadly, quite erroneous.

Jan 1, 1983

By Nobuhiro Takahashi

PROLOGUE The Yaguki mine, which is located near the southern end of the Tohoku region, Japan, near the coast of the Pacific Ocean, had had a long history as a copper mine, but had not been operated since 1925. About 30 years later it was reopened by Nittetsu Mining Company, and in 1958 a small flotation and magnetic separation plant, a so-called test plant, started production. The ball mill the author first met, a 8x4x4x7 ft tricone mill, called No.1 mill, had started running at that time. With his experience in initial, running of this mill he realized that the ball mill was not simply a preparatory process to flotation, but a determinant factor for flotation performance, an energy-consuming and costly process, and that its operation control was an important task in the plant (1). The working part of an operating ball mill is the ball load inside, whose properties govern the grinding performance. Its size distribution affects the efficiency greatly and the capacity is nearly proportional to its weight. When a ball mill operates for a long period of time with a constant and consistent addition of renewal balls, wear and renewal of balls are balanced, and an equilibrium ball load is formed. A stable equilibrium load is the primary requirement for a stable ball mill operation. However, renewal ball size would be the most influential factor affecting efficiency and capacity of operating ball mills. To improve efficiency, to increase capacity, or to get finer product, attempts to find out the optimum size assortment of renewal balls should be made. When re-

Jan 1, 1976

By Irving Fatt, R. M. Weinbrandt

Efforts have been made for many years to observe pore structure of sedimentary rocks on a microscopic scale. A better description of the pore structure in reservoir rock would aid in the development of relations between flow through tube network models and flow in consolidated reservoir rock. The unique qualities of the scanning electron miscroscope (SEM) make it the ideal tool to use in a study of pore structure. Previous methods of studying pore structure included plastic casts of pore space and optical microscopy.l-7 There is now available a new method to observe three-dimensional flow channels in reservoir rock: a scanning electron microscope having variable magnification from X20 to X20,000 and approximately 1000 times the depth of focus of the conventional light microscopes. This microscope also can obtain stereoscopic images and can measure and diagram flow channels so that it is possible to construct a network of tubes that will model consolidated reservoir rock. THEORY OF THE SCANNING ELECTRON MICROSCOPE The scanning electron microscope (SEM) functions by projecting a beam of electrons through magnetic focusing lenses at a specimen and recording secondary electrons excited by the primary beam. The amount of secondary electron emission portrays the topography of the specimen because more secondary electrons are emitted from high points than from low points. A schematic of the SEM is shown in Fig. 1. The property of the SEM that is of most importance in this study is its great depth of focus. The depth of focus results from using electrons

Jan 1, 1970

THIS issue is about Chuquicamata and the new sulphide plant. Chuquicamata is moving into a new cycle of productivity; she has begun to give up the sulphide copper which lies deep-seated beneath the oxide ore zones in large but yet unknown quantity. After forty years of production, Chuqui may be likened to a strapping youngster, with adolescence and maturity still ahead. Mining operations are being projected-not for decades -but for generations. Although there are still many years of open-pit mining ahead, planning of future underground mining has been started. The bottom of the orebody is still unknown, but enough work has been done to show that Chuqui is one of the largest known copper orebodies in the world. Until recently, only the oxide ores have been mined and these have been treated at the rate of 50,000 to 60,000 tons per day by leaching. Construction of the sulphide plant was timed to coincide with reduction in production of oxide ores. The new sulphide concentrator and smelter, designed in keeping with the magnitude of the orebody, will be brought on the production line at the rate of 30,000 tons per day. The capacity of the plant now planned can be expanded to treat 60,000 tons of sulphide ore. Little wonder that Chuqui is a name legendary in the remotest mining circles. But to those who have known her more intimately, and there is hardly a mining camp without a Chuqui graduate, she means much more. She is an orebody that has made engineers. Reposing at 10,000 ft on the western flank of the Andes in the arid northern reaches of Chile, water is scarce, common fuels absent, and volcanoes and earthquakes add drama and hazard. It is these natural difficulties which have created the fascination and challenge which have caused many engineers to devote their lives to unlocking this treasure house of nature.

Jan 1, 1952

Discussion of the paper of N. V. Hansell, presented at the Cleveland Meeting, October, 1912, and published in Bulletin No. 72, December, 1912, pp. 1497 to 1,517. C. Q. PAYNE, New York (communication to the Secretary*) :-Mr. Hansell has presented in his paper a very interesting and valuable summary of the various methods of enriching iron-ores which have been developed during recent years. Particularly striking in this connection is the high degree of enrichment of the concentrates from magnetic iron-ores which is now commercially feasible. Magnetic concentrates containing from 6 7 to 139 per cent. of metallic iron, showing an efficiency of 90 and even 95 per cent. in. their separation, are not now uncommon. Such results exceed those obtained by gravity methods of treatment of all copper-, lead-, and zinc-ores, and are only equaled in the cyaniding of gold-ores and in the flotation treatment of certain copper-ores. It is of interest to note that the-type of magnetic field which is employed in securing these results, in the Gröndal (wet) and the Ball & Norton (dry) systems of treatment is the same in each case : viz., a field of alternating north and south poles. The credit for developing this simple and useful field, which has found so wide an application both in this country and abroad, is due to two American inventors and engineers, Clinton M. Ball and Sheldon Norton. At the same time, it should be noted that part of the improvement in the grade of the magnetic concentrates, especially in the case of the wet treatment of finely mineralized ores, is due to a well-devised scheme of mill-treatment, whereby a rough concentrate is usually obtained as an intermediate product, which is then recrushed and reseparated in obtaining final clean products.

Jan 3, 1913

By M. N. Short

It is almost self-evident that the student of geology depends for his education in geology only in small measure upon his own observation. His chief sources of information are lectures and personal instruction from teachers, and the geological literature. Of these, the literature is by far the most important. The total geological knowledge available to the geologist of today is substantially that which is on the printed page, and no more than that. There are many geologists of outstanding rank who during the course of a busy and useful professional career have accumulated valuable geological knowledge. This, however, is never available to the profession, owing to the disinclination of these geologists to write or to the refusal of their employers to allow the results of their work to be published. With the passing of these geologists, their accumulated knowledge is irretrievably lost. In many mining districts the operating companies are not averse to the publication of geological information gathered by their engineering and geological staffs, but for various reasons this information is not published. However, when a public survey geologist goes into the district this information is placed at his disposal and eventually is published. But for the intervention of a disinterested public scientist, this information would have been buried in company files. In the last analysis, the teachers themselves depend largely upon the printed page for the knowledge they pass on to the student. Without geological literature, then, the instruction of geological students would be almost impossible. There is no .question that, as a whole, geologists who are on the public payroll have to their credit far more contributions to literature than have either teachers or professional geologists, whether the latter be independent or in the employ of private corporations. The very fact that geologists are upon the public payroll places them under obligation to make available to the public the results of their endeavors. They must either prepare these results for publication or they must furnish data or otherwise aid their colleagues to publish their results. The success or failure of a public geological survey depends entirely on the

Jan 1, 1935

By V 7. 0 / 300 dpi

THE cams at present universally used in stamp mills lift the tappets with an involute form of curve, to which the surface of the tappet is always tangent; moreover, the line of contact between tappet and cam, if produced, would pass through the center of the stem. This is no doubt a desirable feature, but the writer has long believed that it would be much more desirable if the cam were to pick up the stamp without shock, and gradually increase the upward velocity of the stamp throughout its upward movement. The involute form of cam attempts to impart instantly a considerable upward velocity to the stamp, starting it from a state of rest, and the result is a destructive blow, a great deal of noise, and much wear and vibration. The writer has developed a form of cam which will lift the stamp with a motion similar to that of the piston of an engine between the end and middle of its stroke; in other words, harmonic motion, from the point. of zero to maximum velocity. The curve will give this ideal motion only when the stamp is set for the exact drop for which the cam was designed, but the improved cam will not be as bad as the involute cam until the drop is reduced one-half. In other words, if a cam is designed for a 6-in. drop, it will be some improvement over the usual form of cam until the drop is only 3 in. Any cam, whatever its form, must of course lift the stamp in the same number of degrees of revolution; therefore, with this new form, since the stamp starts more slowly on its upward course, it must end up by going faster, the average speed being the same as with the involute cam. The stamp, after it is no longer in contact with the cam, keeps on going up a certain distance, which is easily calculated. It is therefore possible to hang up a stamp without a cam stick, if the fingers are not more than 1/8 in. longer than necessary to hold the tappet above the cam.

Jan 12, 1914

By M. N. Short

It is almost self-evident that the student of geology depends for his education in geology only in small measure upon his own observation. His chief sources of information are lectures and personal instruction from teachers, and the geological literature. Of these, the literature is by far the most important. The total geological knowledge available to the geologist of today is substantially that which is on the printed page, and no more than that. There are many geologists of outstanding rank who during the course of a busy and useful professional career have accumulated valuable geological knowledge. This, however, is never available to the profession, owing to the disinclination of these geologists to write or to the refusal of their employers to allow the results of their work to be published. With the passing of these geologists, their accumulated knowledge is irretrievably lost. In many mining districts the operating companies are not averse to the publication of geological information gathered by their engineering and geological staffs, but for various reasons this information is not published. However, when a public survey geologist goes into the district this information is placed at his disposal and eventually is published. But for the intervention of a disinterested public scientist, this information would have been buried in company files. In the last analysis, the teachers themselves depend largely upon the printed page for the knowledge they pass on to the student. Without geological literature, then, the instruction of geological students would be almost impossible. There is no .question that, as a whole, geologists who are on the public payroll have to their credit far more contributions to literature than have either teachers or professional geologists, whether the latter be independent or in the employ of private corporations. The very fact that geologists are upon the public payroll places them under obligation to make available to the public the results of their endeavors. They must either prepare these results for publication or they must furnish data or otherwise aid their colleagues to publish their results. The success or failure of a public geological survey depends entirely on the

Jan 1, 1935

By H. V. Churchill

There are two distinct methods of combating corrosive conditions. The first and most popular method is to choose a surface or material which will give adequate service under the specific and general conditions which are present. The second is a control or modification of the corrosive conditions to the end that metals and materials which would be attacked and corroded without such control or modification may be used. Under the first method of attack of the corrosion problem may be grouped such devices as the selection of metals or alloys which offer great resistance or the use of protective coatings such as paints, lacquers or metallic coatings. Such procedures are exceedingly useful. It is undoubtedly true that most of the problems of corrosion will be solved by recourse to this first method of attack. However, it must be remembered that there are many conditions in which metals are used where the choice of the particular metal to be used must depend upon other factors than corrosion behavior. Some of the factors which may govern the selection of metals for specific use are the physical and mechanical properties of the metals. But there is another factor which is of prime importance and that is relative price. It is the pressure of these factors of mechanical properties, physical characteristics, and relative price that has acted as the stimulus for the second methhod of combating corrosion. The producer and user of various metals is confronted with the fact that because of mechanical properties, physical characteristics, or price, the use of a particular metal is desirable even though the corrosion conditions are adverse to the use of the metal. In many cases, the successful use of the metal may be made even though it is impossible to protect the metal by coatings. This is rendered possible by control or modification of the corrosive media. Use of Sodium Silicate to Prevent Attack by Alkali Solutions This idea of controlling or modifying corrosive media is well illustrated by some recent experiences with aluminum. For a number of years collapsible tubes have been made of aluminum. Due to the ease with which aluminum is attacked by even mild alkalies, the use of such tubes

Jan 1, 1929

By H. V. Churchill

There are two distinct methods of combating corrosive conditions. The first and most popular method is to choose a surface or material which will give adequate service under the specific and general conditions which are present. The second is a control or modification of the corrosive conditions to the end that metals and materials which would be attacked and corroded without such control or modification may be used. Under the first method of attack of the corrosion problem may be grouped such devices as the selection of metals or alloys which offer great resistance or the use of protective coatings such as paints, lacquers or metallic coatings. Such procedures are exceedingly useful. It is undoubtedly true that most of the problems of corrosion will be solved by recourse to this first method of attack. However, it must be remembered that there are many conditions in which metals are used where the choice of the particular metal to be used must depend upon other factors than corrosion behavior. Some of the factors which may govern the selection of metals for specific use are the physical and mechanical properties of the metals. But there is another factor which is of prime importance and that is relative price. It is the pressure of these factors of mechanical properties, physical characteristics, and relative price that has acted as the stimulus for the second methhod of combating corrosion. The producer and user of various metals is confronted with the fact that because of mechanical properties, physical characteristics, or price, the use of a particular metal is desirable even though the corrosion conditions are adverse to the use of the metal. In many cases, the successful use of the metal may be made even though it is impossible to protect the metal by coatings. This is rendered possible by control or modification of the corrosive media. Use of Sodium Silicate to Prevent Attack by Alkali Solutions This idea of controlling or modifying corrosive media is well illustrated by some recent experiences with aluminum. For a number of years collapsible tubes have been made of aluminum. Due to the ease with which aluminum is attacked by even mild alkalies, the use of such tubes

Jan 1, 1929

By O. B. Hopkins

There was no noteworthy development in the oil industry in Peru during 1933 and all activities were restricted to the producing fields. The output of the country increased above that of previous years but there still remained a substantial shut-in production at the close of the year. The total production during 1933 is estimated at 13,259,891 bbl., of which the International Petroleum Co., Ltd. contributed 11,205,-362 bbl. A relatively small amount of new drilling was undertaken during the year. The International completed only one new well although a number of the old producers were reworked and deepened. Comments on Tables There are four oil districts in Peru, as shown in Table 1, although only three of these are now being operated. The exhausted Pirin field was abandoned eight years ago. La Brea-Parinus.—The La Brett-Parinas fields are on the property of the International Petruleum Co., Ltd. in the westernmost part of Peru. These fields include a number of producing districts that are defined by complex fault blocks associated with anticlinal folds. Data covering all the items listed in the table are not available on these fields but can perhaps be supplied in part in the future. Lobitos and Restin.—These two fields belong to the Lobitos Oilfields Limited and are near the coast, 10 to 20 miles north of the La Brea-Parinas fields. According to the Department of Mines and Petroleum of Peru, 311 wells at Lobitos and 197 at Restin had been drilled to the end of 1927. Since that date there has been enough drilling to increase moderately these figures. The depth of wells is not available but it is believed that their average depth is slightly greater than in the La Brea-Parinas area. The productive horizons are of Eocene age. zorritos.—The Zorritos field is the northernmost in Peru and is operated by the Establecimiento Industrial de Petroleo de Zorritos. The field is on the coast about 70 miles north of Lobitos. The number of wells drilled in this field to the end of 1927 was 343, according to the Department of Mines and Petroleum of Peru. The depths of these wells are reported to range from 300 to 700 ft. The largest wells do not produce

Jan 1, 1934

By Dennis K. Mortensen

The Role of the Operator The ultimate objective of any installation is to be able to accomplish the useful work that it was originally designed for. The operator needs a tool that he can both operate effectively and maintain efficiently. The overall design and subsequent installation of a comminution circuit should be a marriage of good engineering practice and practicality. Since the operator must operate and maintain his equipment, his input into the design and installation is vital to its ultimate success. The design of a crushing or grinding circuit is dependent upon many factors including flowsheet design, equipment selection, physical layout, space restrictions, climatic restrictions and considerations for future expansion. The operator must live on a day-to-day basis with the results of the final design and installation. The most satisfactory operation will result when the operator has a major input into each of the criteria that are used to define the final design and installation. The operator referred to is not only the mining company or organization that is having the installation built for its specific use but, more specifically, the person or persons that will actually be responsible for its daily operation and maintenance. Future references to the "operator" will include those individuals with that daily reponsibility. The operator's input into the installation of the circuit is of equal importance to his input into the design. The engineering organization which puts together all of the various design drawings for circuit installation is generally restricted to trying to get all of the details onto a multitude of 24" x 36" two dimensional drawings with a few isometric drawings thrown in. It's almost impossible to get all of the details of a final installation onto all of the drawings, and field modifications are necessary to make everything fit properly. In a multilevel installation, such as a grinding or crushing circuit, it is difficult to envision space requirements to adequately operate and maintain the various pieces of equipment simply by looking at a set o£ drawings. For some designs it is helpful to build a scale model so that a more realistic view of what the installation will look like can be seen. The scale model allows the operator to make whatever changes in design are needed to operate and maintain his equipment most effi-

Jan 1, 1982

In the death of Major A. B. desaulles at South Bethlehem, Pa., on Dec. 24, 1917, the Institute lost a valued and esteemed member, one of the last few of those who, in May, 1871, at Wilkes-Barre, attended the first meeting of the Institute, in response to a call that had been issued by R. P. Rothwell, Eckley B. Coxe, and Martin Coryell. Major desaulles was born Jan. 8, 1840, at New Orleans, and was the son of Louis and Armidc Longer desaulles, each of French descent. As a boy he was privately tutored in the South, and then schooled in New England to enter the Rensselaer Polytechnic Institute, where he was graduated with honors in the class of '59. Following his graduation he studied in France and Germany for two years, returning to New Orleans in 1861 to enter the Confederate Army, in which he served with distinction as an engineer throughout the Civil War, rising to the rank of Major and the command of his Corps. After the close of the war he pursued his studies abroad for another year, returning to New York in April, 1866, when he became engineer for the New York & Schuylkill Coal Company, and remained at its plant near Wilkes-Barre until October, 1871, when it was sold to the Philadelphia & Reading Coal and Iron Company. He then returned to New York where for several years he was engaged in the practice of his profession. In 1869, he married Catharine M. Heckscher, daughter of Charles Heckscher of New York City. Mrs. desaulles survives him. In 1876, Major desaulles became superintendent of the Dunbar Furnace Company in Fayette County, Pa., with which company he remained until 1883. As a feature of the Pittsburgh meeting in May, 1879, Major and Mrs. desaulles entertained the members of the Institute at dinner at Dunbar on the occasion of the Institute's visit to Dun-bar furnace. In 1883, he took up the formation of the Oliphant Furnace Company in that county, of which he became and remained the head for five years. He was then called to the superintendency of the New Jersey Zinc Company at South Bethlehem, Pa., in which position he remained until his retirement,from active service in 1911, maintaining, however, hi.; keen interest in the metallurgy and smelting of zinc, in collaboration with his son Charles, a member of the Institute and a Director of the American Smelting and Refining Company. From 1888, until his death, he resided in South Bethlehem, a prominent and highly respected citizen of that progressive and stirring community. Major desaulles was a member of the Protestant Espicopal Church, and at the time of his death was a vestryman of the Church of the Nativity at South Bethlehem. He was president of the Men's Club of the Church of the Nativity. His kindly nature led him to take an active interest in the promotion of healthful sports among young men. He was ever active in all things pertaining to the general welfare and uplift of his fellowmen. In his death the profession has lost a distinguished engineer and mctallurgist and our country a patriotic able citi-zen and man of affairs—one greatly beloved by those whom he honored with his friendship, and respected and looked up to by all who were privileged to know him.

Jan 1, 1920

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By R. S. Shoemaker, R. M. Darrah

Expanded markets for copper in the past few years and a consequent search for new ore bodies have revitalized the widely known but seldom applied method of producing copper called heap leaching. Heap leaching is defined here as the process applied to oxide ores which have been mined solely for the purpose of leaching. In this case, all costs of mining the ore become a part (and a substantial one, as will be shown) of the cost of the copper produced, whereas in dump leaching the mining cost has already been accounted for as a stripping cost for the sulfide ore. Of course, with newly opened ore bodies, stripping costs may be divided through accounting procedures, between the copper produced by the mill and that obtained by leaching, but in general this type of operation must be economic on the basis of the sulfide ore alone. Heap Leaching Requires Low Capitalization Heap leaching, as a beneficiation method, is unique in that it is the only process used for the recovery of a metal in which the time involved from mining the ore to metal production is measured in months instead of hours or at the most, days. Then too, after the ore body has been depleted and mining has ceased, metal production will continue for some substantial period of time. Heap leaching is also unique because unlike any other method of beneficiation, metal recovery cannot be accurately forecast ahead of time and recovery will never approach that of a conventionally milled sulfide ore or even that of a vat leached oxide ore. Counter-balancing this drawback, however, is the relatively low capital expenditure necessary to put a heap leaching operation into production and the consequence that smaller ore bodies which would not support the higher capital cost involved in a vat leaching plant can be made into producers. Stated more simply, in heap leaching the operator accepts low recovery in exchange for low capital costs and low break even point. Whether the operator chooses vat leaching with its higher recovery and higher capital costs, is a mater of economics which depends in part on the nature of the ore to decide. For instance, an ore that will vat leach in 7 to 10 days using 7 pounds of sulfuric acid per pound of copper produced might use double or triple that amount of acid during the months that are required for heap leaching.

Jan 12, 1968

Jan 1, 1949