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By James H. Boettcher

INTRODUCTION There are many and varied sources of finance available to the mining industry for exploration, development and/or the operation of mining projects and companies. These sources include equity from major as well as "penny" stock exchanges, precious metal mutual funds, private investor groups (from "grubstakes" to tax-oriented limited partnerships) and banks. The variety is representative of the fact that the world's capital markets are segmented and stratified according to risk-reward characteristics. This interrelationship is summarized in Exhibit I and 2 which relate (very approximately) various sources of finance to a typical mining project's life cycle and risk-return characteristics. The objective of this paper is to introduce, as it applies to the mining industry, a somewhat recent phenomenon represented by one of these capital markets segments referred to as "venture capital." Venture capital investing per se, which today is a multibillion dollars per annum investment business, goes back as far as Queen Isabela's backing of Columbus' "wild ideas." The real institutionalization of the venture capital process really began in earnest, however, after World War II. Today over 700 private venture capital sources (and more government related ones) exist providing funding to a range of industries, but typically related to the "high-tech" business. The table to the right shows industries financed by venture capital funds between 1980 and 1982. Conspicuous by its absence is, of course, mining which is not a great surprise since typical mining projects up until recently were large, required long lead times and were undertaken by established mining houses. Also, as most of you can appreciate, successful investing in the mining business requires a great deal of experience and understanding of the industry which most venture capital funds do not have. TARGETED RETURN The rate of return objective of most venture capital funds is, according to the legalized version, to realize a return which is "substantially in excess of that obtainable through conventional equity investments." One may say that a common objective of venture capital funds is to realize a 20% to 30% compound annual internal rate of return on capital over their life which is often ten years. [ ] This objective has been recently more feasible in the mining sector due to the development of smaller precious metal projects which cost less and are quicker to generate cash flow than the behemoth projects of the 1970s. In addition to precious metals, venture capitalists have invested or looked at a variety of other mining projects including ones as prosaic as a high margin "kitty litter" operation, sand-gravel and other industrial minerals operations, the leveraged buyouts of coal mines or mineral divisions of major energy or mining corporations, and even in in-situ copper or gold leaching ventures. A typical investment is in the range of $100,000 to $3,000,000 although some can go as high as 5,000,000. This implies a project size up to, say, 30,000,000 if a venture capital fund does it on its own. Larger projects can be done if the equity portion of the investment is syndicated with other investors.

Jan 1, 1985

The Committee on Papers and Publications has set June 1, 1919, as the closing date for the receipt of manuscripts intended for the Chicago meeting, which is to be held Sept. 22 to 27, 1919. Manuscripts must be received by the Secretary on or before this date. If they are sent through members of the technical committees, they must be sent to those committees long enough in advance to be forwarded and in the hands of the Secretary by the time specified.

Jan 5, 1919

PRESIDENT GEORGE OTIS SMITH, District 4 WASHINGTON, D. C. PAST PRESIDENTS SAMUEL A. TAYLOR, District 3 PITTSBURGH, PA. E. DEGOLYER District 0 NEW YORK, N. Y. FIRST VICE-PRESIDENT W. H. BASSETT District 1 WATERBURY, CONN. TREASURER KARL FILERS NEW YORK, N. Y.¬ SECRETARY H. FOSTER BAIN NEW YORK, N. Y.

Jan 1, 1923

By J. Parker

As a practicing mining engineer, I face many rock mechanics' problems daily and would like to mention one or two examples to illustrate the current gap between laboratory investigations and actual field problems. I would like to endorse Dr. Obert's suggestion that more field measurements and observations should be undertaken. There is an ever-increasing body of data beginning with Hast's results in Sweden,l then measurements at Elliot Lake, Canada, and so on, including our own measurements at White Pine, which clearly indicate that the horizontal stresses underground. are often at least as large as the vertical stresses. Visual observation of the deformation of roof and pillars (including failure due to horizontal compres- sion) also demonstrates that the horizontal stresses are often most important: Yet almost every laboratory investigation begins with the assumption that the only stresses acting are vertical. Roof spans in layered formations. for example, are calculated on the assumption that the rock behaves as a gravity loaded beam. This is all too often unrealistic.

Jan 1, 1967

By Richard M. Foose

WOULD you like to find a large new ore deposit next year? The answer is as obvious as the question is foolish. But perhaps the question does have some merit if we alter it slightly and ask: What are you doing about finding new ore? This one is more difficult to answer. Possibly you are doing nothing about finding new ore because you have proved reserves for many future years of production. Others may be investing some small percentage of time, effort, and money in mineral exploration, and reserves may be currently adequate, or inadequate, in terms of many future productive years. Still others may be engaged in large-scale mineral exploration programs involving large expenditures of time, personnel effort, and money. In whatever category you may be, a final question might well be asked. Is your current mineral exploration program, or lack of program, consistent with the long-range needs and objectives of your organization and of the mining industry as a whole, and is it designed to stimulate the growth of the industry in future years, or is it only a short-range program in response to some current situation?

Jan 3, 1958

By Harry H. Angst

THE history and efficiency of 40-ton capacity dump trucks for surface waste removal at the New Cornelia opencut copper mine, at Ajo, Ariz., are summed up in this paper. Tabulations of truck performance, together with detailed cost figures, prove the value of truck transportation for certain special operations at a large mine. Emphasis is given to the fact that truck transportation not only reduces the haulage costs but also reduces the breaking ground and shovel-loading costs per ton. The New Cornelia opencut copper mine is in the desert. The climate is ideal for seven months of the year, but the five summer months are uncomfortably hot. The elevation is 1820 ft. above sea level and the annual rainfall is approximately 6 inches. The ore body is a monzonite-porphyry deposit. The waste-rock capping consists of hard rhyolite, conglomerate and porphyry. All the material is hard and cannot be excavated without blasting. The rhyolite and conglomerate waste is very blocky. The weight of the rock in place is 2.16 tons per cubic yard. The average mine production per day is 22,000 tons of ore and 18,000 tons of waste rock, the latter consisting of surface rock and material within the ore body too low in grade to send to the concentrator. The rock is loaded by electric shovels with 4 ½ -cu. yd. dippers. The primary transportation of ore to the concentrator and waste to the dumps is by 30-yd. dump cars and oil-burning steam locomotives; therefore truck haulage of waste is a minor factor of the New Cornelia operation. However, as New Cornelia was one of the first mines to use large-capacity dump trucks for haulage, the results obtained are of interest. EQUIPMENT On the south side of the New Cornelia is a hill rising about 500 ft. above the normal surface elevation, roughly 1000 ft. in diameter at its base, called locally Arkansas Mountain peak. Exploratory drilling in this area developed additional ore that could be made accessible for open pit operation only by moving the mountain face a maximum distance of 400 ft. to the south. The slope of the mountain adjacent to the pit averaged 35°, and the small area involved precluded the use of train haulage for the removal of the 4,000,000 tons of waste estimated above the normal pit elevation. A study of dump-truck haulage at Boulder Dam and San Gabriel Dam led to the decision to use large-capacity end-dump trucks rather than smaller trucks, for the following reasons: 1. The truck would have to withstand the impact of hard, heavy chunks, some of them weighing as much as 10 tons, which would be dumped from the 4 ½ -cu. yd. dipper. 2. The coarse, rocky, abrasive material would soon damage a light truck body. 3. The body of a small truck could not be efficiently loaded with coarse rock.

Jan 1, 1941

Mar. 3-7, ASTM, spring meeting and commitee week, Hotel Statler, Cleveland. Mar. 4, AIME, Morenci Sub-Section, Longfellow Inn, Morenci, Ariz. Mar. 5, AIME, Chicago Section, Ladies Night, Chicago. Mar. 10-13, National Electrical Mfrs. Assn., spring meeting, Chicago. Mar. 10-14, National Assn. of Corrosion En-Engineers, annual convention, Galveston. Mar. 11, Society for Applied Spectroscopy, 6 pm, supper, Tosca's; S pro, meeting, Socony-Vacuum Training Center, 63 Park Row, New York. Mar. 16-19, American Institute of. Chemical Engineers, Atlanta Biltmore Hotel, Atlanta. 'Mar. 17-21, ASTE, annual meeting, Chicago. Mar. 20, AIME, Philadelphia Section, Engineering Bldg., University of Pennsylvania, Philadelphia. Mar. 22-Apr. 6, Chicago International Trade Fair, Navy Pier, Chicago. Apr. 1, Society for Applied Spectroscopy, Socony-Vacuum Training Center, 63 Park Row, New York.

Jan 1, 1952

By Frank C. Greene

The year 1941 was uneventful in oil and gas development in Missouri. No new pools were opened and several areas with promising structures, in the northwestern part of the state, were disappointing when drilled. In looking for an explanation of these failures, it is suggested that it will be necessary to find areas in which the lower beds of the Mississippian are upfolded, in order to obtain production in northwestern Missouri. To do this, geophysical exploration or test drilling far enough into the Mississippian beds to get cores or cuttings of definitely established age appear to be the best methods. Although not leading to new production, drilling in Missouri established two new state records, one for depth and another for the amount of rotary drilling. An important well† in sec. 24, T. 19 N., R. 11 E., Pemiscot County, in the southeastern corner of the state, was drilled with a rotary to 4740 ft., several hundred feet deeper than any previous hole. The total footage drilled by rotary rigs of various types was 31,135 ft. and that by cable tools, 29,166 feet. The total number of completions was 85, of which 18 were gas wells with an initial open-flow capacity of 12,528,000 cu. ft., and 67 were dry holes. Of the latter, 19 were drilled into Mississippian or older formations. Table I gives a summary of activities by counties.

Jan 1, 1942

By Frank C. Greene

The year 1941 was uneventful in oil and gas development in Missouri. No new pools were opened and several areas with promising structures, in the northwestern part of the state, were disappointing when drilled. In looking for an explanation of these failures, it is suggested that it will be necessary to find areas in which the lower beds of the Mississippian are upfolded, in order to obtain production in northwestern Missouri. To do this, geophysical exploration or test drilling far enough into the Mississippian beds to get cores or cuttings of definitely established age appear to be the best methods. Although not leading to new production, drilling in Missouri established two new state records, one for depth and another for the amount of rotary drilling. An important well† in sec. 24, T. 19 N., R. 11 E., Pemiscot County, in the southeastern corner of the state, was drilled with a rotary to 4740 ft., several hundred feet deeper than any previous hole. The total footage drilled by rotary rigs of various types was 31,135 ft. and that by cable tools, 29,166 feet. The total number of completions was 85, of which 18 were gas wells with an initial open-flow capacity of 12,528,000 cu. ft., and 67 were dry holes. Of the latter, 19 were drilled into Mississippian or older formations. Table I gives a summary of activities by counties.

Jan 1, 1942

By Alfred E. Hunt

The application of the color-method for the estimation of manganese in iron and steel, based upon the depth of the characteristic purple color of permanganic acid, was first made in this country, the writer thinks, by one of the members of the American Institute of Mining Engineers, Mr. Samuel Peters, in 1874, at the laboratory of the Bay State Iron Company, and was published by him in the Chemical News. The method is credited to him in the new edition of Crooke's Select Methods. The principle of oxidizing manganese with peroxide of lead, or other oxidizing agents, and determining the amount of manganese from the color of the purple permanganic

Jan 1, 1887

By B. K. Miller, George E. Moore

THE Missouri fire clays are here divided into plastic and semiplastic clays occurring as widespread bedded deposits in east central Missouri and flint and diaspore clays occurring as isolated "sink-hole" deposits in the north central Ozark region. Visual inspection was the first method used in clay prospecting. Thin overburden, hard sandstone "rimrocks," and the occurrence of diaspore float made this method particularly applicable in the flint and diaspore fields. The first drilling tool used was a hand auger. One man can drill 25 to 50 ft. per day at a cost of about 35 cents per foot. Holes can be drilled to a depth of 150 feet. Spud drills are often used where the over burden is hard. This drill uses a slotted earth socket bit. A two-man crew can drill about 100 ft. per day at a cost of about 35 cents per foot. Mechanically powered auger drills have been used extensively in wildcat drilling in the past few years. This type of drill furnishes a continuous set of cuttings. The practical depth limit with this drill is 50 to 60 ft. Two men can drill 300 ft. per day at a cost of about 20 cents per foot. Core drilling is used mainly to prove a known clay deposit. A two-man crew with a No. 22 Sullivan drill can drill about 30 to 40 ft. per day in soft clay, at a cost of about $1.25 per foot.

Jan 1, 1947

By Andrew Torok, Thomas D. Thompson

Research efforts have not developed techniques for the complete desulfurization of coal that is needed to reduce air pollution caused by burning coal and to reduce the sulfur in metallurgical coke. Sulfur in coal occurs in three forms and of these, the pyritic sulfur occurs as discrete mineral particles and, at least theoretically, should be subject to physical rejection. Pyrite occurring in hard rock mining is concentrated by froth flotation; therefore, the possibility of removal of pyrite from coal by flotation does exist. With this possibility in mind, the flotation and adsorption characteristics of ore and coal-pyrite were compared while using potassium ethyl xanthate as the collector.

Jan 1, 1973

By William J. Potter, Roger N. Pyle

Introduction The primary ingredient for survival of mining companies during a recessionary period is to be innovative and resourceful in the structuring and financing of operations. Over the past decade, many mining companies have had to retrench and restructure their operations and to redeploy their assets just to survive. During the same period, traditional sources of financing for mining companies -- commercial banks, subsidized export credit loans and long term straight debt financing in the public markets -- became less available and more expensive. Meanwhile, new markets and new financing instruments provided new alternatives for mining companies. Those companies which exploited these alternatives greatly enhanced their capacity for survival and even for profitability. This article considers the strategies adopted by some companies to adapt to changes in this recessionary environment; the inadequacy of traditional sources of financing; certain of the new financing instruments, structures and markets which have become available; and how several mining companies have utilized these new instruments, structures and financial markets to improve their competitive positions. THE IMPACT OF RECESSION ON MINING COMPANIES AND TRADITIONAL FINANCING SOURCES In its 1983 year-end article "The New Economic Order" Mining Journal characterized many of the large private sector mining companies with operations in the industrialized countries as being "gripped between the jaws of high working costs and stagnating metal commodity prices." The article went on to characterize the Canadian mining industry in particular as being "in the difficult position of having to seek to sell the bulk of its output in a world market characterized by over-capacity, where production costs were determined by internal political and economic factors while prices were set by external competitive forces of supply and demand." Miners of a wide range of commodities in the industrialized countries have come to realize that their domestic mineral resources are in many cases no longer competitive with global sources of supply. To compete and survive they would have to rely on their technical and financial expertise in mineral exploration and development and in mining and processing. Strategies For Survival Global competition has compelled management in the extractive industries to improve their worldwide cost position. This is the only means whereby a mining company can differentiate its product and attain a substantial competitive advantage. During the past decade, for example, ASARCO Inc. and Inco Ltd. chopped their payrolls, postponed expansion plans and otherwise retrenched. ASARCO reduced its capital expenditures and cash requirements for operations in 1984 to a level almost equal to its internally generated cash. The company's finances were also strengthened by increasing total lines of credit from outside sources, by selling common stock, and by reducing annual pension funding through a change in actuarial assumptions. Other companies returned to their traditional organizational structure where they had a demonstrated competitive strength. Consolidated Gold Fields, for instance, resumed its operation as a mining finance house. Its capital investment programs are now devoted solely to resource development. In mid-1984, at a time of firming zinc prices, Union Miniere S.A. used the opportunity to integrate its smelting capacity and to direct investment to certain subsidiaries at the expense of less viable operations. Smaller corporations realized that it was not enough just to be the low-cost producer. For example, Drummond Coal Company in Alabama, which dominates its regional market due to its low-costs, has also developed a world-wide trading capability and has placed incremental tonnage from its own mines as well as brokered coal produced by others, thereby minimizing capital risk. In Canada, Campbell Resources has exploited difficult times by acquiring assets cheaply. In the process it improved its capacity to withstand cyclical economic swings by diversifying from solely a copper and gold producer to a company based upon asbestos, coal, copper, gold and natural gas.

Jan 1, 1985

W ho holds title to the continental shelf? As submarine mineral ventures move out into deeper and deeper waters, the dispute over this question is bubbling up with greater and greater urgency. Basically, the forces of disagreement are lined up on two fronts--one nationalist and the other internationalist. The nationalists, or "broad shelf" proponents, view the shelf as a geologic extension of the coastal nations and therefore subject to the sovereignty of these nations. The internationalists or "narrow shelf" proponents, seek to circumscribe the jurisdiction of the coastal nations by a topographic line beyond which all rights would be reserved to an international regime. In the U.S. public sector, three groups----the American Bar Association and International Law Association committees and the National Petroleum Council (NPC) - have taken a stand on the broad shelf. These are joined by AIME, which has consolidated its position in a "Policy Statement on the Outer Limit of National Sovereignty Over Seabed Resources." This statement was adopted by the AIME Board of Directors last October 15 after its submission by Earl Cook, Chairman of the AIME National Affairs Committee, at the behest of the Society of Petroleum Engineers. The main organization holding to the narrow shelf is the Commission on Marine Science, Engineering and Resources.

Jan 1, 1970

By J. W. Snavely

WITH all the advantages of handling bulk materials by means of belt conveyor also go some problems, one of the most persistent being that of cleaning. When sticky materials are being carried; the build-up of material on the return idler rolls results in difficulty of belt training. Much attention has been given to the problem of cleaning conveyor belts, and a great variety of cleaning devices have been developed. Even the best involve troublesome maintenance, and none can completely remove the fine particles imbedded in the belt cover, which cause rapid wear of the return idler rolls, and at the same time, of the belt cover as well.

Jan 12, 1951

By E. E. Donath, W. L. Crentz, J. D. Doherty

The principal washing problems in preparing coal for the synthetic fuel industry may be stated as: (1) ash removal for the Bergius process; and (2) sulphur removal for the Fischer-Tropsch process. A study is made of the effect of ash on oil losses during the elimination of the nonliquefiable portions of the coal in the hydrogenation process. The oil loss increases with ash content and results in increased consumption of coal, hydrogen, and power.

Jan 4, 1950

By Frank R. Milliken

Before the rather sudden economic downturn in recent months, shortages of materials were painfully felt throughout the US. The current recession has provided a temporary relief here and there-but energy fuels and a number of staples such as sugar are still in short supply. This is an unsolved and fundamental problem that will haunt us again as the economy turns up. There is an awareness that the nation faces a widening supply gap in many of its most basic materials-from asbestos to tungsten-as evidenced by recent studies and government reports, and by the Secretary of the Interior's annual warnings about the mounting seriousness of the problem.

Jan 3, 1975

By R. H. Thorpe

Longwall working in Britain developed to overcome problems arising from depth of seams causing roof and ventilation difficulties. This system became very widespread particularly in the thicker seams, where faces of up to one mile in length were not uncommon. In the thinner sections, in order to remain competitive, the longwall undercutting machine was developed. Following the development of the coal cutter, every other aspect of the face operation was examined and mechanized as it became a bottleneck to output and efficiency. The face system itself was modified and workings concentrated with the same objectives.

Jan 1, 1977

MANY members of the National Societies died in service overseas during the World War. No memorial to these engineers has been set up but a unique and interesting suggestion has been made. While Edward Dean Adams, Fellow of the American Society of Civil Engineers, and Associate of the Ameri-can Institute of Electrical Engineers, ,vas in Belgium last June as delegate of the National Societies, En-gineering Foundation, and Engineering Societies

Jan 12, 1927

By Robert C. Weed

Leaching in place at Cananea began in the 1920's on a limited scale. The first plants were small wooden boxes located underground in the Capote and Oversight mines, and output was low. Scrap iron was used as precipitant. Later several other small plants were started up. Leaching was limited entirely to underground areas, and production remained low. The Veta precipitating plant, the first on a larger scale, was put into operation in the late 1920's. After a period of intermittent service it was rebuilt in 1946 and has since been running continuously.

Jul 1, 1956