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By Pedro L. Lizaur

INTRODUCTION The degree of success of an association between parties in establishing a new venture ultimately depends on three factors: a. the venture's underlying economic strength, which is based on the complementarity of the comparative advantages brought by each party to the negotiating table; b. the ability to reach an agreement which satisfies each party's objectives and constraints; and, c. the capacity to design and implement a funding structure which is consistent with the project economics. A thorough assessment of the venture's profitability and associated risks under alternative technical and economic scenarios is the basis for a sound "go" or "no go" decision. In-depth evaluation of the risks and rewards to each of the parties involved under alternative legal and financial structure must be the foundation for a long lasting "how to go" decision. The allocation of risks and rewards should be consistent with the objectives and constraints of all parties and the sharing mechanisms, established in the contract, should be flexible to assure the long-term stability of the agreement. Rapidly changing economic conditions during the last decade have had a dramatic impact on the envisaged allocation of risks and rewards between host countries and private investors. The effects of these changes, and the fact that the relative strengths of the parties involved may shift during the life of a project (e.g. before and after major capital investments have been made), have forced the renegotiation of a multitude of contracts. Therefore, the present and future stability of an economic agreement would depend not only on the originally designed provisions, but also on provisions which allow for the automatic adjustment of rewards to project sponsors under a variety of future economic situations. A pre-condition for the allocation and quantification of risks and rewards is the definition of standards of measurement used by each of the parties. This is critical in international negotiations when one of the parties represents the national interests of a country. The understanding and use of different standards for the measurement of rewards for risk taken between a government and private enterprise facilitate the negotiation of a satisfactory agreement. This is possible because certain trade-offs between the negotiating parties may have different relative values. STANDARDS OF MEASUREMENT OF REWARDS FOR RISK TAKEN The negotiating process takes a step forward when the parties are able to focus on their interests, explore different alternative solutions and then base results on a set of objective standards. Unfortunately, the parties frequently put more effort into "staking out" and defending positions, than into understanding their intrinsic interests. Moreover, when one party, such as a governemnt owned corporation, represents a country's national interests, the negotiation process increases in complexity. Private firms focus on commercial profitability, using discounted cash flow techniques such as NPV, IRR, or ROE. In contrast, the government is also concerned with the project's impact on the local socio-economic environment. Without entering into a discussion of alternative economic development theories and approaches, there exist several possible measures that could be pragmatically utilized by each party in evaluating the socio-economic impact of a project. The more complete measure is the National Profitability (NP). The NP is a discounted cash flow procedure similar in structure to IRR or NPV but in which the project's financial cash inflows and outflows and discount rates are adjusted to take into consideration the local conditions. The NP is calculated on an unlevered basis and all taxes and duties are removed from the project

Jan 1, 1985

By T. A. Rickard

A severely technical article, however well written, can not be an agreeable form of literature. It suffers from the defects of its qualities. One defect is a congestion of language, due to a multiplicity of adjectival nouns. The sentences are packed with words of unpleasing sound, charged with complex ideas, crowding one another so closely that the phraseology moves like an ice-pack in Bering Sea or a log-drive in a river; the undercurrent of meaning may continue to move, but the surface is obstructed. This verbal congestion is made evident by ugly compoundings, many of which are adopted by the technical writer in the mistaken belief that they give directness to his statements. For example: A unanimously approved scheme "A scheme unanimously approved" The continuous temperature record "The continuous record of temperature" To stimulate interest in synthetic plant construction "To stimulate interest in the construction of synthetic plants " In smelters reverberatory-furnace firing with powdered coal has been practised for a decade. "In smelting, the firing of reverberatory furnaces with powdered coal has been practised for a decade. " A tar consumption of one pound per ton "A consumption of tar at the rate of one pound per ton'

Jan 1, 1931

By S. O. ANDROS

RECORDS in mining operations naturally fall when improved equipment and methods are developed. And tunneling through the Continental Divide is a mining operation, even though the tunnel was not driven to strike a vein at depth. Although many engineering feats have been successfully accomplished in the development of water supplies in the Western States, the Twin Lakes Tunnel in Colorado presents some unusual features that make it noteworthy. To begin with, it is the first trans-mountain water diversion project in the West. The fact that the Continental Divide intervenes between where the water is and where it is needed was brushed, aside as of minor importance. It was enough to know that on the western side of Independence Pass, the highest in Colorado, with an elevation of 12,095 ft., there was water which was needed on the eastern side, where the Twin Lakes are situated, forming the

Jan 1, 1934

By John Mills

THREE case histories from professions other than engineering will serve to introduce ideas basic to this discussion. Case (1) Date, about 1900. A young man, B. D. from a three-year graduate course in a prominent divinity school, was for two years a successful pastor of a small church; then friction over theological matters arose with a fundamentalist deacon of the "Bible belt" type. He resigned, returned to his university for a four-year medical course, interned for two more, and thereafter was successful and apparently happy as a physician. We may assume that he was converted in early adolescence and vowed himself to service as a minister. Acceptance of his announced career by parents, friends, and teachers plus his own determination confirmed his choice until illiberal criticism threatened his usefulness and he awoke to the fact that his inner needs were not along the direction in which inertia and his conscience had constrained him.

Jan 1, 1947

By C. L. Berrier, Wm. B. Daly

Jan 1, 1923

By Wm. B. Daly, C. L. Berrier

Jan 1, 1923

By Hugh Marriott

MANGANESE and its ores have been recently dealt with in comprehensive papers to the Iron and Steel Institute by Sir Robert Hadfield, and in a series of papers read before the A. I. M. E. at the Cleveland meeting. I have taken the opportunity of adding this mineral, to my records of the "World's Mineral Production and Consumption," as recently pub-lished in the Economist ?. The tables bring out the following significant facts: The world's production has increased by 10 per cent since 1913. India's production has increased by 3 per cent since 1.913, the supply from this source now being 31.1 per cent of the world's output. Russia is now producing at about half its pre-war rate and yields 19 per cent of the world's production. West Africa supplies 12.5 per cent of the world's total output. Brazil's present output is 2.5 times that of the pre-war period, being 11.3 per cent of the world's output.

Jan 9, 1927

By Lyall, Zickrick

As a result of the studies on recrystallization and crystal growth made in this laboratory, certain theories have been developed. These are expressed briefly in a paper by Dean and Hudson.' One of the principal points brought out in that paper is that in the deformation of a crystal, the energy supplied is distributed to the atoms of the lattice, probably by the forced formation of molecules. It is found that a Maxwellian distribution of the energy among these atoms will account for the grain growth at various temperatures. According to such a distribution the number of atoms with energy above a certain critical value, E, necessary for recrystallization at the absolute temperature T is given by n = Ne-E/kT where N is the total number of atoms. It is apparent that if this line of reasoning is correct, a metal which has been cold-worked and reheated to a temperature below that of complete annealing will have the atoms with the higher energy recrystallized, that is, reduced to normal energy and there will remain only atoms below a certain energy. If this metal is again cold-worked the peak in the number-energy distribution curve will, as compaied with its position after the first cold-working, be displaced toward the regions of lower energies, that is, the temperature of recrystallization will be higher. By a repetition of this process the position of this maximum and hence the recrystallization temperature of the metal could be raised considerably. In order to check this theory, experiments have been made on copper wire. The wire was drawn from 1/4-in. rod to 22 B & S gage and then sample lots were annealed at 400 and 220° C., respectively. The wire annealed at 400° C. gave an elongation of 34 per cent., whereas that annealed at 220° C. gave only 23 per cent. These wires were then drawn by identical practice to 34 B & S gage and the elongation determined after an anneal of 3 min. in an oil bath held at various temperatures. The figures obtained have been plotted in Fig. 1. It will be seen that the

Jan 1, 1927

By Charles F. Park

CORRECTLY speaking, iron ore is limited to any naturally occurring rock from which iron may be extracted at a profit, but in practice the term is frequently used to indicate borderline material or inaccessible material that may in the future become commercially profitable. This distinction is much more than quibbling about terminology. When a layman hears that there are about 45 billion tons of iron ore in the world he naturally thinks that sounds like quite a bit of rock, and what is the use of worrying about the depletion of so plentiful a material. He does not realize, nor does he stop to analyze. why iron ore in Europe and Japan may carry no more than 30 per cent iron while tremendous quantities of 50-60 per cent iron ore in Brazil are not exploited. To people in the iron industry the answer is obvious: the Brazilian material is inaccessible, and there is no suitable fuel near-by. In places closer to home, submarginal ore in considerable quantity contains undesired impurities, such as sulphur, phosphorus, or titanium.

Jan 1, 1947

By AIME AIME

THE Charleston Section of the A. I. M. E. held a joint meeting with the National Coal Association and the American Society of Mechanical Engineers on May 6 and 7, at which 94 members and guests were registered. Mechanical operation of coal mines was the subject discussed. First on the program was a paper entitled "Rock Dusting in the Coal Mines of West Virginia," by R. M. Lambie, chief of the Department of Mines, and Gordon MacVean. It appears in full in the current issue of MINING AND METALLURGY, p. 290. J. E. Jones of the Old Ben Coal Corp. opened this discussion by describing the method of rock dusting employed in the mines of that company, giving many interesting details, incidentally referring to the use of rock dust in fighting mine fires. He described one case where a number of troughs was brought to within 150 ft. of the fire, and rock dust had been thrown in its direction. After each trough had been thrown the party advanced a few feet, where another trough was discharged. About 10 ft. were gained on each advance, until the party found they had advanced completely over the fire.

Jan 1, 1926

Jan 1, 1913

By D. O. LIVINGTON

(Presented by invitation at a meeting of the Spokane Local Section of the institute, Feb. 17, 1912.) THE Pilares de Nacozari mine is located in Sonora, 75 miles south of Douglas, Ariz. The town of Douglas is on the International Boundary and is the place at which the ores from the Bisbee mines are smelted. The Moctezuma Copper Co. owns the mines at Nacozari, and the copper-concentrates shipped to the Copper Queen smelter, at Douglas, make a good smelting-mixture with the Bisbee ores. The Moctezuma Copper Co. and the Copper Queen smelter at Douglas, as well as the railroad from Douglas to Nacozari, are owned by the Phelps Dodge Co. The ore-deposit occurs in the form of a large ellipse with a major axis of approximately 2,000 ft. and a minor axis of about 600 ft., the major axis bearing about 90 W. of N. The whole of this ellipse is more or less mineralized; the surface being principally an iron gossan with some occasional copper-stains. Below the oxidized zone, which is not more than 50 ft. deep, the minerals are pyrite and chalcopyrite, with occasional seams of chalcocite, the latter being rare. There appears to be no well-marked zone of secondary enrichment, the oxidized gossan over the greater part of the deposit changing suddenly to what is apparently the original unaltered ore. The copper-values are concentrated around the perimeter of the ellipse, and it is principally around this perimeter that the mining is done. The ore mined averages a little more than 3 per cent. of copper, with a small amount of silver, less than an ounce per ton. Some ore of considerably higher grade than this has been shipped, however, but the above average is of the mill-run. The ore is wider near the two ends of the ellipse than along the sides, and is mined in some cases to a width exceeding 200 ft. The country-rock for the first vertical 500 ft is a volcanic acid breccia, probably rhyolitic; below

Sep 1, 1912

By STEPHEN L. GOODALE

THE question indicated in this title was put by letter to a number of my friends working in various industries, who have charge of young metallurgical graduates. The replies were almost unanimous in stating that the college training should cover in the most .thorough manner possible those sciences which are the fundamentals - of engineering. Mathematics, physics, mechanics, electricity, chemistry, physical chemistry, and their applications to actual problems of life were mentioned in most of the letters I received. Some writers added also business law, economics,. and finance. One reply expressed it: "These subjects, well founded, mixed with good judgment, well applied, should enable the .young man to carry on the art of life successfully." One answer stated frankly what is really wanted: "As much as possible.' ' This writer mentioned .the sciences as being very important, but he wishes men ' to be trained in metallurgy also, and he concedes the omission of some advanced chemistry and physic's to secure the metallurgy. He emphasized particularly. the a we. desirability of work in college to development' He concludes his letter with a repetition of his slogan that what is wanted is as much as is possible.

Jan 1, 1930

.MAX ROESLER, Firmeza, Oriente, Cuba (communication to the Secretary?).-It is substantially admitted by all who have recently been in touch with these deposits that the orebodies lie in the fine-grained dark-green rocks, called diorite by most writers and diabasic by myself. The three points of disagreement concern the agency of included limestone blocks as causes of deposition, the agency of the

Jan 5, 1917

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Jan 1, 1938

By AIME AIME

MINING geology has been at once the vocation and avocation of John M. Boutwell, newly elected Director of the Institute representing Utah and Colorado. Geologists were looked at askance by most of the "big" men in mining when, from 1896 to 1900. Mr. Boutwell was teaching geology at Harvard, his alma neater; and his success in applying geologic principles to the business of finding ore contributed much to changing the attitude of scepticism. From 1900 to 1908 lie was with the U. S. Geological Survey, with service in Bingham, Utah; Morenci, Ariz.; and Park City, Utah. Since then he has been engaged in private practice as a consulting mining geologist retained by many of the leading mining companies. A dozen men now recognized as outstanding geologists got their early

Jan 1, 1937

By V. Jares

DESPITE the fact that a combination of metals-aluminum-zinc-tin, and sometimes aluminum-zinc-cadmium-is extensively used for aluminum solders, as well as for die-castings, the constitution of these alloys has not yet been made clear. I. BINARY SYSTEMS The system aluminum-zinc is the basis of the ternary alloys under consideration. Their composition was made sufficiently clear by the investigations of Rosenhain and Archbutt,1 Bauer and Vogel,2 Sander and Meissner,3 Hanson and Gayler4 and Isihara.5 Only the temperature of decomposition of the crystals 0 seems still to be doubtful, whether it is considered as a compound of Al2Zn3 (according to Bauer and Vogel) or as an intermediate phase of variant composition (according to Hanson and Gayler). This temperature is given by most of the authors as in the neighborhood of 256° C., only Isihara giving 280° C. As its accurate determination is of special importance in the study of the ternary alloys under consideration it was experimentally controlled in the following manner: An alloy corresponding in composition to the formula Al2Zn3 was made, in which the temperature effect was found to be the greatest. This was drilled and a silver-constantan thermoelement inserted into the cavity so as to be in direct contact with the alloy. The whole was then very slowly heated and the heating and cooling curves determined. The transition temperature from the heating curve was found to be 281° C., whereas from the cooling curve it was 252° C.

Jan 1, 1927

By Herbert F. Miller

For a long time I have believed that the gas- and brick-costs of open-hearth furnaces using prodncer-gas could be greatly decreased by a change in the design of the port, which would materially reduce the first-cost of the furnace, the rebuilding-cost, and the repair-cost. The defects of the present type of such furnaces, which has clone duty for so many years, may be studied in Fig. 1, in which A A are the two air-uptakes, B is the gas-uptake, and C the end of the gas-port. In the present type of furnace, C is practically 011 the edge of the bath and therefore combustion begins to take place at that point, but has no effect until the gas passes from 5 to 10 ft. into the hearth. As the furnace grows older, C moves back by reason of the burning or falling down of the arch. The furnace reaches its highest efficiency when C has moved a certain distance, but is still near enough to the bath for the overhead layer of air to hold the gas down on the bath, and far enough back to permit combustion to take place at some distance from the bath. This latter fact means that the temperature is sufficient to melt steel at the edge of the port. From this time on, the furnace decreases in efficiency. What is the reason ? As C moves further hack, the gas is released from the gas-port at a point where there is little or no overhead layer of air. The result is that the gas floats along the roof, with the air mostly underneath it. Why the air does not stay over the gas is readily seen in Fig. 1. The lines of draft naturally run parallel to the length of the furnace. The air-uptakes being on the sides and the gas-port in the middle, most of the air will naturally be drawn along the sides of the furnace and the layer of air will be thinnest over the gas, where it is most needed.

Jan 1, 1914

By Charles Kirchhoff

For twenty years it has been my work to watch and record progress in both the technical and the commercial branches of mining engineering in the wide sense in which it is represented by our Institute. While you who have been actively engaged in our profession have made history, a few of us have attempted to be the historians and have been kept keenly on the qui vive to follow the developments of so broad a field. One so employed may be pardoned if he ask you to pause for the unusual purpose of looking backward, that you may measure what you and others have done, and that the younger men may gather inspiration from the work accomplished by their elders and their predecessors. It is not so long since that the commercial management dominated our industries. Bred in the school of science, which seeks its reward in establishing the truth, our engineers were sometimes indifferent to trade conditions and requirements. Much of that feeling has disappeared, and the engineer recognizes that it is his mission to apply the achievements of science to a useful commercial end. On the other hand, business men now understand that the utilization of our natural resources and the production of articles for consumption is impossible without the intervention of the engineer. They must co-operate, unless, indeed, the two functions are combined in one man —a rare but powerful combination. Now the final measure of success of both is the cost sheet on the one hand and the expansion of markets on the other, so closely interwoven, so mutually interdependent. There is one cardinal feature, however, which characterizes the engineer's work—namely, the permanence of his achievements. Every improvement, particularly when it has been recorded in such lasting form as a paper in the Transactions of our societies—

Jan 1, 1900

By Kenzo Ikeda

The Kosaka smelter is situated in the extreme northern end of Hondo (the main island of Japan) 15 mi. east of Odate, on the government railroad, to which it is connected by a private railway. It contains ten blast furnaces having a maximum daily capacity of 1600 short tons of ore, conducting a slow pyritic smelting entirely without coke or limestone, and with a charge carrying over 50 per cent. of briquetted and agglomerated fines. The matte (35 per cent. Cu) is blown in two basic-lined barrel converters, the blister copper (98.8 per cent. Cu) being cast at once into anodes. The adjoining refinery contains 600 tanks with a maximum capacity of 1300 tons of cathodes per month, the byproducts being gold, silver, and bismuth. At present, working at about half capacity, the whole plant consumes 2000 kw. of hydro-electric power, and employs 850 men and women. The ores are derived from two principal sources: The relatively new Hanaoka mine, 20 mi. from the smelter, yielding copper pyrites by underground mining, and the old Kosaka open-cut mine, 1 1/2 mi. from the smelter, yielding three different ores: (a) kuromono, a compact finegrained mixture of barite (32 per cent.), zinc blende, galena, and pyrite, the whole carrying about 2.5 per cent. Cu; (6) cupriferous pyrites with 2.4 per cent. Cu; (c) siliceous ore with 2 per cent. Cu. The Hanaoka ore now constitutes approximately one-half of the charge, almost replacing the Kosaka kuromono which was the ore chiefly smelted until 1913.'

Jan 1, 1923