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By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By H. J. Struth

AN unusual engineering achievement in the Gulf Coast last year was the drilling of a wildcat well in the swamps of Louisiana, using direct current. More unusual was the fact that it was necessary to house a diesel engine and generator on a barge in order to supply power. The remoteness of the well made it necessary to transport living quarters and drilling equipment to the location by means of barges, and involved the digging of a canal from a lake to the location, approximated one mile. The drilling equipment used on this well consisted of two generating units, each having one 210-hp. six-cylinder @$-in. bore type VDMA, 600 r.p.m. diesel engine, direct connected to a type CD-169, 125-kw., 250-volt direct current generator, which in turn is direct connected to a type CD-105, 15-kw. 250-volt exciter. One of these motors operates the draw works, one the mud pump, and one a duplicate spare. The generating equipment on the barge was approximately 250 ft. from the derrick, the control wires being brought from the derrick to the generator barge enclosed in a standard fire hose. This is an original idea for confining the con- 11.01 wires in one cable; obtaining minimum space and ample protection. Both control and power lines were suspended on poles. This well was at Lake Grande Ecaille Dome, which was located by seismograph in 1928. Fig. 1 shows the derrick, power barge and living quarters where direct G. E. current was used with rotary drilling equipment.

Jan 1, 1932

By Robert S. Archer, L. W. Kempf

It is now well known that the structure of aluminum-silicon alloys can be refined in a rather remarkable manner, with consequent improvement of physical properties, by certain treatments applied to the molten metal shortly before casting. The differences between the treated and the untreated alloys are so marked that special terms are used to distinguish them, the untreated alloys being referred to as "normal" and the treated alloys as "modified." The first practical method of accomplishing this result was that of A. Pacz,1 which consists in treating the molten metal with a salt flux of which the active ingredient is sodium fluoride. The result can also be brought about, and in a more economical manner, by the addition of small quantities of metallic sodium (or potassium) to the molten alloy shortly before casting.2 The action of the Pacz flux evidently consists essentially in the production of free sodium by the reaction of sodium fluoride with aluminum. The changing of a normal alloy to a modified alloy is referred to as "modification" and any process for accomplishing this result is a "modifying" process. Modified aluminum-silicon alloys were introduced several years ago, and it has been demonstrated both in the laboratory and in commercial practice that it is no simple matter to produce castings having the maximum or nearly the maximum properties which under favorable circumstances can be obtained. The alloys are rather sensitive to small changes in chemical composition, and the modifying process must be carried out in a very particular manner to obtain the best results. Extensive experimental work has been carried out in the laboratories of the Aluminum Co. of America with the object of determining the conditions that must be observed to make these alloys of the greatest possible value. It was necessary to learn how to control the modifying process

Jan 1, 1926

By Ralph C. Flow

In Cleveland County, North Carolina, 1 ½ miles south of Kings Mountain, Foote Mineral Co. operates an open pit for the production of spodumene, feldspar, mica and commercial stone. Spodumene concentrate is sent to Foote Mineral's Sunbright, Va., plant and to other customers. Exton, Pa. and New Johnsonville, Tenn., plants produce lithium com- pounds sold to the oil industry for multipurpose lithium-base greases, to the metal industry as welding flux, to the air conditioning market and to the glass industry. Ceramic-grade spodumene, feldspar, and mica concentrates go to other processing companies from the Kings Mountain plant. Waste amphibolite is delivered to a neighboring quarry operation. Geology and exploration of the deposit have been described by T. L. Kesler, Chief Geologist of Foote Mineral Co., in the September 1961 MINING ENGINEERING. Measured ore reserves as published at that time were 20.7 million tons. The ore deposit consists of a series of lithium-bearing pegmatites enclosed in amphibolite and mica schist wall rocks. The general strike of the pegmatites is northerly, and in the southern part of the pit, they dip slightly towards the west. The largest body being mined has a fairly uniform thickness of about 200 ft. Other pegmatites in the pit area range from 20 to 100 ft in thickness. Minerals in the pegmatites are 20% spodumene, 32% quartz, 6% muscovite, 41 % feldspar and 1 % trace minerals.

Jan 10, 1962

By A. B. Parsons

DOWN in Washington an army of individuals constituting the government of a so-called "'democratic" nation is trying to manage the conduct, in its rnultifold phases, of the greatest war in history for the country that is potentially, at least, the strongest in the world and on which, consequently, the major responsibility rests. The enterprise is one of unprecedented magnitude and complexity. That individuals and groups have made and are making serious blunders, both as to the establishment and execution of policy, is to be expected.

Jan 1, 1942

By Francis L. Vinton

THE eccentric theodolite I exhibit is one constructed by the Stack-poles of New York, from drawings, considerably modified, of Combes's theodolite. The telescope is on one side of the horizontal limb, and the vertical circle is opposite to the telescope; thus they nearly balance each other, making already the construction lighter than in the instrument of Combes, where the telescope and vertical circle are together on the same side, and are both balanced by a considerable weight. The instrument stands upon three levelling screws or feet, an improvement upon the old or general style of mounting a transit on four feet-for indeed the instrument is easier levelled, and, more-over, stands more stable on three than on four points of support. The general advantage of an eccentric theodolite is evident, namely, that it can measure any and all vertical angles, from 0 to 360, without being interfered with by the horizontal limb as is the transit; besides this advantage, it needs no preparatory adjustment or correction for eccentricity ; on the other hand, however, that correction

Jan 1, 1873

By Francis L. Vinton

THE eccentric theodolite I exhibit is one constructed by the Stack poles of New York, from drawings, considerably modified, of Combes's theodolite. The telescope is on one side of the horizontal limb, and the vertical circle is opposite to the telescope ; thus they nearly balance each other, making already the construction lighter than in the instrument of Combes, where the telescope and vertical circle are together on the same side, and are both balanced by a considerable weight. The instrument stands upon three levelling screws or feet, an improvement upon the old or general style of mounting a transit on four feet for indeed the instrument is easier levelled, and, moreover, stands more stable on three than on four points of support. The general advantage of an eccentric theodolite is evident, namely, that it can measure Any and all vertical angles, from 0 to 360, without being interfered with by the horizontal limb as is the transit; besides this advantage, it needs no preparatory adjustment or correction for eccentricity; on the other hand, however, that correction

By M. C. Dow

INTRODUCTION BELT conveyors generally are conceded to be the most economical method yet devised for the transportation of large quantities of bulk materials within plants. Belts are coming into greater use for transportation over long distances and are replacing other forms of long-haul conveyance. It is not the intent of the writer to comment on the design of belt conveyors, but to offer some suggestions for improvement in the operation of conveying belts, based on many years experience with belts in several stonecrushing plants. It is the contention of this writer that opportunities for improvement not fully realized by most operators exist in many plants and that a study of the individual conveyors can result in lower unit belt costs. GENERAL RELIABILITY It is the fool-proof nature and general reliability of the belt conveyor that is responsible for its neglect. Even when abused, a belt will carry large tonnages and last a long time, often outlasting the personnel responsible for its care. Some operators look upon the purchase of a new belt as an expensive outlay every so many years, rather than a constant and steady cost amounting in belt wear alone to several dollars every operating day. This belt wear for all conveyors in one stone-crushing plant known by the writer costs 1 1/2 cents per ton or $12 to $15 per hour, based on the present cost of belt replacements. The fact that these replacement costs are double those of prewar quality emphasizes the necessity of improving the conditions that make belts wear out. Some of those conditions are the responsibility of the conveyor designer, and if a serious original error has been made, this handicap cannot be overcome by the operator. If the belt is too narrow, too steep, or too fast for good loading, the operator finds that he has an inherently expensive belt. The other factors that decrease the life of a belt are more or less under his control. The two factors of most importance are the loading conditions and the alignment. Most of the cover wear and carcass cutting occurs at the loading point and if the alignment is not good under all conditions, edge wear or damage may result, Fig I. LOADING THE BELT It is difficult to load a belt in an ideal manner; that is, to flow the material on the moving belt at a steady rate, without impact, without turbulence, and with a velocity equal to and in the same direction as the belt. An inclined belt is especially difficult to load and particularly when its speed is over 300 or 350 fpm. Inclined conveyors require longer skirt plates to prevent spillage until the load settles. It does not seem reasonable to expect an inclined conveyor to carry the same load as a horizontal belt of the same width and speed, because of the difficulty in loading

Jan 1, 1947

By AIME AIME

READERS of a technical paper, or the audience if the paper is presented orally, judge the paper on several counts. The September 1940 issue of MINING AND METALLURGY contained an excellent short article by S. Marion Tucker en- titled "Are You Going to Present a Paper," which considered the general subject of presentation. In it Dr. Tucker referred to the large number of poorly prepared and badly delivered papers that are presented annually before the large number of technical and other societies that meet regularly, and he stressed the point that good delivery, length of paper, content, and composition are of great importance. All of Dr. Tucker's points were well taken; however, good illustrations are equally important in explaining certain phases of some papers.

Jan 1, 1941

By W. H. Brandt

THERE has been much progress in the last two decades in understanding the hardenability of steel. Roughly, the progress has been along two lines, which may be designated as empirical and fundamental. This empirical work has progressed to the point where steels may be manufactured to the desired characteristics quite closely and heat-treatment and application problems can be approached with considerable confidence. Particularly noteworthy among the empirical work is that of Grossmann,12 who has given formulas for calculating hardenability as a function of composition, and the establishment of the isothermal transformation curve by Davenport and Bain.13 The latter does not fall entirely in the class of an empirical study, for while it provides a means of presenting a tremendous amount of empirical data in the form of a single curve, it also outlines clearly the problems that face the fundamental investigator. The isothermal transformation curve shows clearly that the phenomena occurring in the neighborhood of the knee of the curve are those that limit the hardenability of steel. Above the knee of the curve, the product of decomposition of austenite is lamellar pearlite and fundamental progress has consisted chiefly of a detailed study of structure and formation of pearlite, largely at the hands of Mehl and his collaborators.1-5 They have shown that formation of pearlite proceeds by a process of nucleation and growth and they measured both the nucleation and growth rate. However, there is still a wide gap between our empirical knowledge and fundamental knowledge, owing largely to the fact that there is no satisfactory theory of nucleation rate or of growth rate. This paper is being written in an attempt to fill in a small part of the gap. A method was presented recently14 for calculating the velocity of edgewise growth of pearlite using an expression for the carbon concentration that satisfies the diffusion equation. The edgewise velocity of pearlite growth in a plain carbon eutectoid steel was calculated, using linear extrapolations of the ferrite and cementite solubilities. While the results are in fairly good agreement with the experimental facts, the calculated velocity of edgewise growth is smaller at 600°C. than G, the radial growth velocity of pearlite nodules, whereas one would expect it to be larger. In this paper the calculation will be repeated using a new extrapolation for the ferrite solubility, which gives better agreement between G and V, the calculated velocity of edgewise growth. A calculation will also be made of the effect of carbon content on velocity of edgewise growth, and the problems of calculating the effects of other alloying elements on growth rates will be discussed. It will be assumed that the mechanism of pearlite growth, established by Mehl and

Jan 1, 1945

By William M. Baldwin

Jan 1, 1946

By William M. Baldwin

Jan 1, 1946

By Arthur F. Wendt

Introduction.—In the year 1885, the writer signed a contract to take charge of the reopening and developing of the celebrated old mines of " El Cerro Rico de Potosi." Two years earlier, an Eng- . lish firm of engineers had made a very glowing report on the property. In the summer of 1885, telegrams arrived from the parties in charge of operations at the mountain, claiming the finding of one of the old veins, with an average richness of over 200 ounces to the ton. In the fall of 1886, the author first personally visited Potosi, but found neither the English report nor the telegram borne out by the facts. After an expenditure of over half a million of dollars and more than three years of continuons hard work, the writer succeeded in unwatering and developing one of the principal old veins of the mountain. This vein, called "Cotamitos," now yields ores of about 75 ounces to the ton, and the old historic mountains of Potosi may be said to have again fairly entered the list of silver-producers. The experience of the author, during his residence in Bolivia, and data obtained from Sr. Don F. Avelino Aramayo, form the basis of this description. POTOSI. Etymology of the Name.—The Quichuá (pronounced Keechna) Indians, known to North American students as the " Incas," although the word "inca" merely signifies ''king," or "chief," of the Quichuás, called the mountain "Sumac-orcko," or the beautiful mountain." Eighty-three years before the discovery of the mountain by the Spaniards, the inca, or king, Huaina Ccapac, travelling from Cantumarca to Calque-Porco, saw the mountain of Potosf and, admiring its grandeur and beauty, said that within its bowels there was, no doubt, much silver. He ordered his vassal* to work the mines. They, having carried their mining implements to the mountain, ascended it and were on the point of commencing work, when they heard a voice of thunder, which said: " Do not take

Jan 1, 1891

By Carl L. Renzoni

INTRODUCTION This paper defines equity as the issuance of a permanent interest in the business on a broadly distributed basis. As such, it excludes the issuance of equity to either a merchant bank or to another corporation. Nearly twenty years ago the equity markets were very simple: The instruments used were primarily common shares, convertible debentures or convertible preferred shares. Another equity-type option often used, especially by junior companies, was the sale of joint venture interests. Issue sizes were generally in the order of $25 - $100 million and issues were syndicated primarily in North America and Europe by one or two investment dealers. Mining corporations today benefit from a market with much more depth. Issues are syndicated by dealers on a truly international basis, and issue sizes now often range up to $300 million. Moreover, dealers are now willing to take significant risk in buying the issues for redistribution. This discussion of trends in equity markets will encompass: 1) common shares 2) warrants to buy common shares 3) convertible debentures 4) commodity backed instruments A review follows of events that affect the mining industry and investment dealers as they have a bearing on the equity markets for the metal producers. FACTORS AFFECTING THE MINING INDUSTRY The current business cycle, up to October 1987, had been characterised by a buoyant stock market and depressed base metal prices. Mining companies entered this period with weak balance sheets and little prospect of cash flows meeting capital needs. The issuance of equity and the sale of assets were used extensively to reduce debt to manageable levels. During this period, the relative high price for gold, and more important, the very high earnings and cash flow multiples afforded to gold producers, caused companies to target gold as the only game in town. The need for capital to acquire and develop gold properties prompted an unprecedented volume of equity issues. (Burns Fry led or co-managed over $1 billion of mining equity issues per year during this period). This high demand for equity capital by the industry prompted an increase in the use of equity instruments, such as commodity backed instruments. In addition, government tax incentive programs in Canada, such as flow-through shares, allowed smaller companies to raise significantly more equity than would otherwise have been possible. Over $1 billion in flow-through equity was raised in 1987 alone. The abundance of flow-through capital in Canada made it easy to form a new company. One flow-through share fund developed a system of providing the working capital required for a company to be eligible to receive flow-through share capital so that an entrepreneur required only a mining property to get started. Many new companies were formed and several flourished in a buoyant stock market environment to the point that market capitalizations grew to $100 million or more. The current period is in stark contrast to that before October 1987. The equity markets are generally available to the resource industry only on a window basis and only for senior companies and for special situations. The industry is benefitting from buoyant metal prices, and bankers are anxious to provide debt capital. Investment dealers previously processing several equity issues

Jan 1, 1990

By W. M. Ross

AMONG the comparatively few A radical changes in mining equipment in recent years is the introduction and use to an ever greater degree of detachable bits for rock drills. Just how great the possible field for economic application of this innovation is, and to what ex- tent detachable bits are used instead of the conventional type of drill steel, are matters of conjecture. Just as a rough approximation, one might conceive that at least three-quarters of the drilling done in mines today could better be performed by steel with detachable bits, instead of only about one-quarter as at present.

Jan 1, 1939

By Richard D. Hagni

Abstract-Although the ore microscopist routinely examines polished sections to determine the mineralogy and texture of ores, his importance to the solution of problems peripheral to geology is not always fully realized. The techniques which he uses can be applied with little modification to the solution of a wide variety of beneficiation problem. By extending his studies beyond those normally considered to be of interest to the geologist, he can include examinations of polished sections of selected mill products. This is a logical extension, because the minerals and textures in the polished sections of ores are the same as those in mill Products. The mill dressing engineer should be more aware of the types of beneficiation problems that can be solved by the ore microscopist and what the ore microscopist can do for him. A greater degree of cooperation between the ore microscopist and the mill dressing engineer can be of significant mutual benefit. Ore microscopy holds an advantage over chemical analysis, because the interrelations and combinations of the mineral constituents of an ore or mil1 product can be visually determined. This advantage provides solutions to many beneficiation problems. Locking is a type of beneficiation problem that is particularly amenable to ore microscopy. The percentage, type, and distribution of locked particles can be readily determined with the aid of an ore microscope and an estimate made of the extent of additional grinding required for liberation. The extent of intimately locked types, which no reasonable amount of grinding will liberate, can also be evaluated. Mineral coating conditions, free particles of a deleterious mineral, and free particles of a valuable mineral held in floculated clusters of gangue are other features that can readily be observed. In some instances, visual examination may show that the problem is not one of locking. Photomicrographs illustrate the variety of beneficiation problems for which the ore microscope is applicable. These problems and their resolution demonstrate the importance of the instrument and show the value of close coordination between the mill dressing engineer and the ore microscopist.

Jan 10, 1978

By C. M. Young

THE safety lamp is the most common and convenient apparatus for detecting inflammable gases in mines, the presence of gas being shown by a blue flame, called the cap, if the wick has been lowered to suppress the luminous flame. The height of the cap increases with the proportion of gas and with the temperature of the lamp flame. Lamps of the Wolf type, the fuel of which is benzine, have a hotter flame than lamps in which vegetable oils are used, such as the Davy, and the Clanny, and are more sensitive than the latter and their many modifications. The Piehler alcohol lamp gives a still higher cap while the Clowes hydrogen lamp is most sensitive of all. While the effect of the temperature of the source of ignition is well known, the writer knows of no previous attempt to correlate the change of this temperature with change of the height of the cap produced. In order to determine the height of the cap at various temperatures, it was necessary to have a source of ignition the temperature of which could he accurately controlled over a considerable range. This condition was met by a coil of wire of high fusing point heated by an electric current controlled by a variable resistance. The use of a coil offered the further advantage of freedom from complications due to the flame of a burning fuel. Such a flame, being itself of variable height, would to some extent raise or lower the elevation of the base of the cap and therefore add to the difficulty of determining the height of the cap. Besides this, the presence of a small cap from the lamp fuel, commonly known as the "fuel cap, " would interfere with the observation of small gas caps. After some experiment, a coil was made of platinum wire, No. 26, diameter 0.016 in. The coil was 17/64 in. (6.746 mm.) in outside diameter and had eight full turns in a length of ½ in. (12.69 mm.). This was connected to an electric circuit through an adjustable resistance, as shown in

Jan 8, 1919

By Orville R. Lyons

THE removal of moisture from coal has been a coal-preparation problem ever since the first wet-washing preparation plant was placed in operation. Today, when most of the coal produced in the United States is wetted at the working face when mined, or is cleaned by wet methods, the removal of moisture is a necessity for any one or a combination of the following reasons; (1) to avoid freezing difficulties during shipment, (2) to increase the B.t.u. content, (3) to effect savings in freight costs, and (4) to so improve the coal that it may be used for specific purposes-for instance, in the production of briquettes or the production of metallurgical coke-or so that it can be treated by dry cleaning methods. In general, the amount of water retained by coal particles varies with the size-consist of the coal. Fine coal has a larger surface area per unit weight than does coarse coal, so its capacity for retaining moisture is proportionately greater. The removal of moisture from coarse coal is relatively easy, while the removal of water from minus 10-mesh coal or finer is a major problem, usually requiring an individual solution at each preparation plant. As a result, a multitude of methods and a variety of equipment have been designed to solve both general and specific moisture-removal problems. Definitions In order that misunderstanding may be eliminated insofar as possible, it is necessary to define the terms to be used. The moisture content of any given increment of wet, washed coal is made up of two parts, inherent and surface moisture. Inherent moisture has been defined in various ways and as yet no standard definition has been agreed upon. However, in general, it is considered as the moisture that is present in the coal in the bed. The important point to remember is that coal with any amount of inherent moisture, whether 2 or 20 per cent, will appear dry if there is no surface moisture. Also important is the fact that inherent moisture can be removed, in part, by air drying at atmospheric temperatures. Surface moisture is that attached to the surface of the coal particles or that retained in cracks and fissures other than capillary openings in the coal substance. Essentially, insofar as the bituminous coal and anthracite indus-

Jan 1, 1950

By Cleveland Dodge

THE present organization of Copper Queen employ-ees, known as the Employees' Conference Com-mittee, is really an outgrowth of the former Grievance Committee, which, in turn, had developed from the original Hospital Committee. The relatively small membership of these older organizations, the practical limitation of their activities to the presenting of grievances, and their lack of initiating powers, were the principal defects which the plan now in operation seeks to overcome. A somewhat parallel scheme was instituted in our Sacramento Hill division about four years ago; this gradually developed into the Ways and Means Committee, which, in addition to providing a forum for the discussion of operating problems, was instrumental in establishing an excellent and mutually satisfactory bonus system. Before recommending adoption of the plan now in force, we made extensive inquiries among those who have had any experience in such matters, and ended by proposing a modification of a scheme developed by John Leitch,1 which was characterized by its similarity to the constitution of the Federal Government. As finally remodeled, the. plan was submitted to vote of the entire working forces at the Copper Queen mines, and was adopted by them in May, 1920. Mining opera-tions since that date have been so interrupted that it is scarcely possible to state exactly what the results have been. The following quotations are from a printed pamphlet containing the constitution of the organization, as finally adopted. The first extract is from a letter addressed by the management to the employees: The plan submitted for your approval and adoption is modeled after the constitution of our own country, under which every individual is given an opportunity for advancement, according to his ability and determination, and every citizen is given a voice in the laws that shall govern him. So it is to encourage the individual employee in advancement, and to give him a voice in making the rules that shall govern his conduct, that we favor the adoption of the proposed constitution.

Jan 1, 1923

By Samuel S. Wyer

THE installation of the gas-producer power-plant in America has been so unusual that all engineers have viewed it with in¬terest; a large majority, however, regard it with a lack of con-fidence and many with positive distrust. Despite the fact that European engineers have usually been less inclined to take the initiative along experimental lines than are Americans, they have, nevertheless, developed the gas-producer plant to a very high state of efficiency to which they were forced by the neces¬sity of economy in fuel-consumption. The gas-producer power-plant is so common in Europe that engineers as well as the general public regard it with the same degree of confidence that is now universally placed in steam¬plants. Gas-engines, both small and large, are in general use there, and central stations, aggregating several thousand horse¬power, are quite numerous. The fact that gas-producer power-plants have received so little attention in America may be attributed to five conditions:-1', ignorance and prejudice; 2, newness of work; 3, in-

Mar 1, 1905