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New Copper Deposit in Chile. - The recent copper discovery in Chile, made jointly by U.S.-owned Empresa Minera Utah de Chile, Inc., and Getty Mining Chile), Inc., awaits the passage of Chilean legislation which is expected to govern the terms of new foreign investment in the country's mining sector. Named La Escondida, the discovery is reported to have the potential for producing 100,000 tons of refined copper per year. This compares with Chile's total refined primary copper production in 1980 of 811,000 metric tons, and to U.S. refined primary production in 1980 of 1,122,000 metric tons derived from domestic material, and 89,000 metric tons from foreign material. U.S. Firms Buy Chilean Properties. - A bid of $18.1 million, made jointly by Chevron and St. Joe Minerals Corp., won over competing bids for the purchase of the Libra and Mena gold-silver-copper deposits in northern Chile. Chevron is the lead partner and owns 70% of the venture. The two properties purchased have not been developed to any significant extent. They are located near St. Joe's El Indio gold-silver-copper mine. The venture is also looking at the possible purchase of two other mines in the area.

Jan 1, 1981

By E. A. Holbrook

IN my thirty years of educational work in the mineral industries and other engineering fields, this past year has been the most unusual and difficult one. Contact with educators from other schools leads to the conclusion that the same situation is countrywide. The first of our difficulties came from the shortsighted policy of the Selective Service in taking out of the colleges, continuously, all engineering students as soon as they had reached their eighteenth birthday. England, Canada, and Russia, too, even in the midst of their critical war situations, had the good sense to keep their young engineering brains in college, for they realized the vital necessity of a steady flow of engineering graduates into the war industries and into the postwar peace industries. As a result of the policy of our Government, our engineering schools were left with only a handful of students who had been rejected for military service. Our colleges, faced with the prospect of several years without students and without income, hastened to give leave of absence to many of their competent teachers who quickly were taken into industry and in many instances are now being retained there at higher salaries than colleges are accustomed or able to pay their teaching personnel. We are finding it most difficult to induce these men to return to their former engineering teaching work. In my judgment, it will take us three or four years to restore our engineering departments to their former level in quality of instruction.

Jan 1, 1946

By James R. Cudworth

OUR colleges and universities have met many difficulties during the past year. From a period of small enrollments and depleted faculties, the educational institutions have passed quickly to a period of the largest enrollments in their history with inadequate facilities and staffs. The results of the shortsighted policy of the Selective Service system which drained the technical schools and universities of many of the students who were potential teachers are now being felt. The movement of faculty members into positions in industry during the war years has resulted in many of them forsaking permanently the educational field for the higher salaried positions they now occupy. Competition is keen between the educational institutions, and between the institutions and industry, for technically trained men. Dean Holbrook's statement in last year's annual review that he thought it would take three or four years to restore our engineering departments to their former level in quality of instructors is even more convincing today. Somehow, the institutions must not only reach their former level in quality of instruction but they must also increase the quantity of their staffs to meet the demands of the ex-service men and the high school graduates for engineering education. The enrollments in the mineral industry fields of mining, metallurgical, geological, petroleum, and ceramic engineering, although greatly increased, are not expanding as much as in the more widely known fields of electrical, mechanical, aeronautical, and civil engineering. In fact, many educators are tremendously worried about the segregation of so many young men in a relatively few fields while the needs of others will remain unanswered.

Jan 1, 1947

Jan 1, 1934

By Arthur Notman

YEAR ago, the Committee on Mineral Economics ventured to predict a more realistic attitude by the public toward the folly of seeking to have more by making less under the guidance of the Blue Eagle. A unanimous decision of the Supreme Court of the United States has now laid that embattled bird to rest. De rnortuis nil nisi bonum. In spite of dire predictions of disaster to follow its early demise, the metal industries and many others have improved substantially. One could name many indications of that improvement, and on the strength of stock-market activities might assume

Jan 1, 1936

By George A. Morgan

The 53 countries that constituted Africa in 1989 accounted for a significant portion of total world output of a number of mineral commodities. Among the most significant minerals to be produced in Africa were andalusite, antimony, asbestos, bauxite, chromite, coal, cobalt, copper, diamond, fluorspar, gold, lithium minerals, manganese, phosphate, platinum-group metals, and the titanium minerals-ilmenite and rutile, vanadium, vermiculite, and zircon. Despite the underdevelopment of much of Africa, mineral raw materials played a very important part of the national economies of many of its countries. In terms of percent-age of export earnings, minerals accounted for more than 90% in some cases. In several countries with agrarian economies and little economic diversification such as Angola and Guinea, a single mining operation could represent an important source of foreign exchange. These latter operations tended to be the more easily mined surface deposits of diamond, gem stones, and precious metals. Mineral commodities for which Africa had a high percentage of world output were bauxite, 16%; chromite, 44.5%; cobalt, 76.5%; copper, 13.9%; diamond, 50.7%; gold, 32.9%; manganese, 27.1 %; phosphate, 22.1 %; platinum-group metals, 48%; uranium, 29.2%; vanadium, 54%; and vermiculite, 41 %. Several of these, chromite, cobalt, diamond, and manganese, were not produced in the United States.

Jan 1, 1992

By Edmond Chin

The area encompassed by the political entities included in this study com-prises 11 million square miles or about 15 percent of the total Earth's land area. The bulk of the region is contained on the Asian continental land mass. Australia, the world's largest is-land or the world's smallest continent, alone is almost as large as the continental United States. The islands of New Zealand, New Guinea, Borneo, Sumatra, and Honshu are among the largest in the world. Collectively, they constitute a land area of 1.1 million square miles or an area about one-fourth the size of the United States. The region is noted for its great rivers. The Chang, Huang, Amur, and Mekong are respectively the fifth, sixth, eighth, and eleventh longest rivers in the world. The Ganges-Brahmaputra has created the world's largest delta, which covers 30,000 square miles. Abutting East Asia are the Sea of Japan, Dong Hai, Nan Hai, Bay of Ben-gal, and Arabian Sea. In the Southern Hemisphere, there is the Indian Ocean and the South Pacific Ocean. The Continental Shelf adjacent to the region constitutes a large proportion of the world's readily accessible shelf area. On the other hand, the Philippine and Java trenches and, further out, the Mariana Trench reach to formidable, abyssal depths, downward to 6,000 fathoms. Contrasting to this is Mount Everest, which reaches a lofty height of 29,028 feet. And then there is Xizang, whose high plateaus have been called the roof of the world.

Jan 1, 1992

By Edmond Chin

The land mass of the Asia and Pacific region comprises 11 million square miles or about 15% of the total Earth's land area. The bulk of the region is contained on the Asian continental land mass. Australia, the world's largest island or the world's smallest continent, alone is almost as large as the continental United States. The islands of New Zealand, New Guinea, Borneo, Sumatra, and Honshu are among the largest in the world. Collectively, they constitute a land area of 1.1 million square miles or an area about one-fourth the size of the United States. The countries in the Asia and Pacific region represent some of the most vibrant economies in the world. Japan is undisputed as one of the world's leaders in manufacturing and commerce. Hong Kong and Singapore are significant both as entrepôt and banking centers. The economies of Australia, the Republic of Korea, and Taiwan compare favorably to the level of the industrialized countries in western Europe. Indonesia, Malaysia, the Philippines, and Thailand have maintained strong economic growth during the past two decades. All these countries in the Asia and Pacific region collectively constitute a significant bloc as to raw materials production and consumption, as to manufacturing, and as to world trade.

Jan 1, 1992

By E. Chin

The Asia and the Pacific region has large mineral resources of antimony, barite, bauxite, bismuth, copper, fluorspar, gold, graphite, iron ore, magnesite, mica, rare earths, salt, talc and pyrophyllite, titanium, zinc, and zirconium. The region overall lacks large resources of oil and natural gas, but it has large resources of anthracite and bituminous coal. In terms of exploitation, many minerals, metals, and fuel are produced in significant quantities in the Asia and the Pacific region as shown in table 1. Collectively, the area accounts for a substantial amount of the world production of antimony, barite, bauxite, fluorspar, gold, graphite, ilmenite and rutile, iodine, iron ore, lead, magnesite, manganese, nickel, salt, tin, tungsten, and zinc. Total coal production of the region exceeds 1.6 billion metric tons. The production of bituminous coal accounts for more than 80 % of the total output. China is the region's largest coal producer, with an output of almost 1.1 billion tons. Other major producers are Australia and India. The combined production by Australia, China, and India is more than 1.5 billion tons or 93 % of the area's output. The remainder of the coal output in the region comes from Afghanistan, Cambodia, Indonesia, Japan, the Korean peninsula, Malaysia, Mongolia, New Zealand, Pakistan, the Philippines, and Taiwan. The production of crude oil throughout the Asia and Pacific region is close to 2.4 billion barrels. China and Indonesia together account for 67 % of the total output. The remainder of the output is primarily from Australia, Brunei, India, and Malaysia. Indonesia is the largest producer of natural gas in the region with an output of close to 58 billion cubic meters, followed by Malaysia and Australia with 23 and 22 billion cubic meters, respectively. Other producers in the region of lesser stature by output include Brunei, China, India, and Pakistan.

Jan 1, 1993

By E. Chin

The countries of Asia and the Pacific have large resources of diverse minerals. Australia and China have extensive mineralization that are commercially being exploited. The major minerals in Australia with known reserves adequate for both domestic demand and export markets include bauxite, clays, copper, diamond, gold, iron ore, lead, manganese, mineral sands (titanium minerals), nickel, salt, silver, tin, uranium, and zinc. China is the world leader in proven reserves of antimony, barite, magnesite, molybdenum, rare earths, titanium (ilmenite), tungsten, and vanadium. It also has about 55 billion tons of iron ore, albeit with an average grade of only 30 % to 35 % elemental iron content. With the exception of chromium and copper, China has significant resources of a wide array of minerals and metals, based on its production and/or export capability for these commodities. Additionally, India has significant resources of bauxite and mineral sands; Indonesia, bauxite, copper, nickel, and tin; Malaysia, tin and associated titanium; Mongolia, copper, fluorspar, and lead-zinc; New Caledonia, nickel; New Zealand, gold and iron sand; North Korea, magnesite; Papua New Guinea, copper, gold and mineral sands; Philippines, copper, chromite, and gold; and Sri Lanka, gemstones. Moreover, there appears to be extensive mineralization III Burma (Myanmar), Cambodia, Laos, Thailand, and Vietnam, but they have yet to be definitively delineated.

Jan 1, 1994

By E. Chin

The countries of Asia and the Pacific, with their large mineral resource base, are significant suppliers of a wide variety of minerals to both regional and world markets. Australia, China, and India dominate the commercial mineral exploitation in the region. Australia has known reserves of major minerals, which are adequate for both domestic demand, and for exports, and is a significant producer of bauxite; copper; diamond; gold; iron ore; lead; manganese; mineral sands (titaniferrous minerals, monazite, and zircon); nickel; salt; silver; tin; uranium; and zinc. China is the world leader in proven reserves of antimony, barite, ilmenite (titanium), magnesite (magnesium), molybdenum, rare earths, and tungsten. China also has large resources of low-grade iron ore and significant resources of other mineral commodities, such as coal, based on its production and export capabilities. India has significant resources of bauxite, barite, graphite, iron ore, and mineral sands.

Jan 1, 1995

By Michel C. Frippel

This section of the Minerals Yearbook reviews the minerals industries of 45 countries: the 12 nations of the European Community (EC) (Belgium, Denmark/ Greenland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, and the United Kingdom); 6 of the 7 nations of the European Free Trade Association (EFTA) (Austria, Finland, Iceland, Norway, Switzerland, and Sweden); Malta; the 11 Eastern European economies in transition (Albania, Bosnia and Hercegovina, Bulgaria, Croatia, Czechoslovakia, Hungary, Macedonia, Poland, Romania, Serbia and Montenegro, and Slovenia); and the countries of Central Eurasia (Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgystan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan).

Jan 1, 1994

By Orlando Martino

This regional report covers the mineral industries of Canada and 40 countries and territories in Latin America and the Caribbean Basin. Also included is a brief description of the mineral potential of Antarctica. The Latin American region encompasses an area twice that of the United States. Latin America and Canada have a rich and diversified endowment of mineral fuels, metals, and industrial minerals. Tables 1 and 2 provide a summary view of Latin America and Canada's output of its major mineral commodities in world mineral supply in 1991 (revised) and 1992. Table 3 shows the relative importance of a selected group of minerals produced in Latin America in the world mineral economy.

Jan 1, 1994

By David B. Doan

This regional report covers 1993 mining and related activity in approximately 40 countries and territories of Canada, Latin America, and the Caribbean Basin. These countries of the Western Hemisphere, as with the United States, are endowed with a great variety of minerals, including metals, industrial minerals, and energy minerals. For most of these countries, such mineral production helps form foundations for their economies and earns export credits including hard currencies. Table 1 depicts an overall view of Latin America and Canada's production of its major mineral commodities in 1993; subsequent tables show the role of Latin America and Canada in world mineral production, trade, and import dependency on minerals from Latin America and Canada by the United States. Overall, the picture emerges of a rich mineral diversity throughout the hemisphere, attracting increasing interest and investment, and complementing the mineral resources of the United States.

Jan 1, 1995

By George A. Morgan

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East. The IS countries that constitute the region accounted for 26% of world crude petroleum output, 17% of world natural gas plant liquid production, and almost S% of world dry natural gas production. About 66% of total world crude petroleum reserves and 31 % of total world natural gas reserves are in the Middle East. Transportation and port facilities in the region are geared to expediting efficient and rapid shipment of these materials. U.S.-dollar-denominated export sales of these fuels, estimated at $120 billion in 1989, provide funding for further diversification of the mineral industry. This is usually through development of downstream facilities for producing energy intensive metals such as aluminum and byproducts of the fuels such as petro-chemicals and fertilizers. Earnings from the industry are also channeled by sever-al Governments in the region to mineral industry projects in Africa and elsewhere. A fairly wide range of nonfuel minerals is produced in the region. However, the variety of minerals produced, output levels, and the size of the overall nonfuel mineral economy is dominated by Iran and Turkey. Turkey, with a diverse mineral production and strategically situated between Europe and the Middle East, ranked among the top three world producers of boron, chromite, pumice, and strontium. It was also a significant world producer of magnesium com-pounds, mercury, and sodium sulfate. Iran had generally lower output owing to 9 years of neglect to the mining sector between 1979 and 1988. It was a significant producer of gypsum and fifth in world production of strontium. Despite a very small domestic mineral industry, Israel was second in world production of bro-mine and a significant producer of phosphate rock and potash. Jordan ranked fifth in world production of phosphate rock. Iraq ranked about eighth in world production of sulfur, a commodity of major importance in the metallurgical, petrochemical, and fertilizer industries.

Jan 1, 1992

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East, providing more than 80 % of the region's foreign exchange. In 1992, the 15 countries that constituted the region accounted for 29.5 % of world crude petroleum output, 20 % of world natural gas plant liquid production, and 5 % of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. A fairly wide range of non fuel minerals is also produced in the region. The most significant are boron minerals, bromine, chromite, gypsum, phosphate rock, potash, strontium, and sulfur. However, the variety of minerals produced, output levels, and the size of the overall non fuel mineral economy of the region is dominated by Iran and Turkey. Turkey, with a diverse mineral production and strategically situated between Europe and the Middle East, was first in world production of run-of-mine boron minerals, second in strontium behind Mexico, and fourth in pumice. It was also a significant world producer of chromite, magnesi'lm compounds, mercury, and sodium sulfate. Turkey was also the Middle East's largest cement and steel producer. Iran continued to expand output of most mineral commodities following the war with Iraq from 1980 to 1988. It was a significant world producer of gypsum and strontium and on its way to becoming a major iron and steel producer in the region. Despite a very small domestic mineral industry, Israel was second in world production of bromine and a significant producer of phosphate rock and potash. In terms of processed minerals, Israel was a major world diamond cutting center and exporter of cut diamond. Jordan ranked sixth in world production of phosphate rock. Saudi Arabia was eighth in world production of sulfur.

Jan 1, 1994

By George A. Morgan

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East. The 15 countries that constitute the region accounted for 28% of world crude petroleum output, 17.2% of world natural gas plant liquid production, and 5.3% of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. About 66% of total world crude petroleum reserves and 31 % of total world natural gas reserves are in the Middle East. Transportation and port facilities in the region are geared to expediting efficient and rapid shipment of these materials. Export sales of these fuels provide funding for further diversification of the mineral industry. Additional development of downstream facilities for producing energy-intensive metals such as aluminum and byproducts of the fuels such as petrochemicals and fertilizers can be expected. Earnings from the industry are also channeled by several Governments in the region to mineral industry projects in Africa and elsewhere. Several countries in the region own major petroleum refineries and distribution facilities worldwide. Petroleum prices rose overall during the year owing to the invasion by Iraq of Kuwait in August 1990. Output from both countries, the fourth and fifth largest producers, respectively, in the Middle East, was negatively affected by the war. Kuwaiti crude oil wells and pipeline facilities suffered extensive war damage while exports of petroleum and petroleum refinery products by Iraq ceased owing to a U.N. embargo. The embargo also impacted Jordan, an exporter of phosphate and potash. Shipments of crude petroleum by pipeline from Iraq through Saudi Arabia and Turkey and by vessel through the Persian Gulf were terminated. However, the loss in production from Iraq and Kuwait was more than made up by accelerated output from other Middle East and world producers. Saudi Arabia, in particular, with its excess production capacity, accounted for the largest portion of the increase.

Jan 1, 1992

By George A. Morgan

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East. Development of downstream petrochemical and fertilizer industries continues as a major investment area. In 1993, the 15 countries that constituted the region accounted for 29 % of world crude petroleum output, 19 % of world natural gas plant liquid production, and 6 % of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. Regional output was up for most major mineral commodities. A major exception was phosphate rock, which declined sharply owing to reduced worldwide demand. Total crude petroleum output declined by over 100 Mbbls, again owing to slack demand in the major industrial countries.

Jan 1, 1995

The Mineral Industry, Published by McGraw-Hill Book Co, New York, N Y. The Mineral Industry is an annual review of the mineral industry It is a standard and complete reference on the mineral industry for the year covered Through the cooperation of the A I M E its publication in 1933 was made possible Mineral Industry for 1930 contains sections devoted to the production, consumption, trade, market, uses and technology of the following headings: Abrasives, aluminum and bauxite, antimony, arsenic, asbestos (b), asphalt, barium and strontium, chromium (b), coal and coke, cobalt (b), copper, diatomite, fluorspar, gold and silver, graphite, gypsum, iron and steel (b), lead, magnesite, manganese, mica, molybdenum, nickel, petroleum and petroleum products, phosphate rock (b), platinum group metals (b), potash, precious and semiprecious stones (b), quicksilver, radium (b), uranium and vanadium, slate (b), sodium salts, sulfur, pyrite, sulfuric acid, talc and soapstone, tin, titanium and zirconium, tungsten (b), zinc, minor metals, minor nonmetals, ore dressing and coal washing (b). Sections marked (b) have appended a bibliography of recent literature on the subject. Each section is written by an acknowledged expert. Other volumes contain similar material Prices -The Mineral Industry, 1892-1930, vols. 1 to 39. Complete sets of this work, uniformly bound, except vols 25 and 26,

Jan 1, 1933

By Henry J. Sandri

ACQUISITION JUSTIFICATION There are many reasons why companies consider acquisitions as a means to expand their operations. Some wish to reduce the impact of business cycles on their businesses. Others seek firms within the same industry for expansion and increased market share. Still others diversify in order to avoid takeovers. Whatever the reasons or justification, an evaluation of an acquisition candidate should be systematic and thorough. To many financial managers the concept of a systematic acquisition evaluation indicates the need for a regular set of evaluation criteria. While these are available from numerous sources, one basic parameter frequently overlooked is the application of these criteria to an industry which is different from the acquirer. This becomes particularly important when evaluating firms within the mineral industry. The mineral industry is significantly different from other industries to require different valuing techniques. • This paper will present a number of reasons why an acquisition candidate in the mineral industry should be evaluated differently from other acquisitions, including by other mineral firms. Additionally, this paper will review the most appropriate means of valuing a mineral firm. • Firms considering the acquisition of a mineral firm should understand the nature of the industry before ever making a tender offer. Some of the general considerations include the following: • Level of Capital Intensity: In the mid-1980's the start up cost for a gold mine has been between 20-200 million dollars and 500-1,500 million dollars for a bauxite operation. • Global Nature of Competition: Except for certain industrial minerals, most minerals and metals are traded worldwide and many on national exchanges, such as COMEX. • Start-Up Time: Many mining operations in developed and developing countries have long lead times, 7 to 10 years in some cases, prior to the start-up of production. • Long Term Nature of Investment: For most mineral operations payback usually occurs at least 7 years after production has started. Additionally, many mining operations will continue producing for 80-100 years. • High Level of Risk: The number of factors that a mining firm cannot control such as grade, volume, world supply and demand, plus the long payback periods tend to classify mineral firms at a higher than average risk compared to other investments. • Cyclical Nature: The mineral industry is cyclical in nature, experiencing long troughs and explosive peaks, thus making timing a critical issue. • Labor Intensive: Even with the large capital requirements needed to operate a mine, most mines are labor intensive in proportion to their capital equipment. • Location: Obviously, the nature of this industry requires operators to work in difficult locations, frequently far from civilized localities, in poor weather conditions and without proper supply and distribution infrastructure. One of the most important considerations is an understanding of asset replacement and asset value. Unlike manufacturing concerns, firms in the mineral industry are working toward the elimination, through depletion, of their asset base. Product flexibility is not available to a mining operation. A mineral firm basically has two options as its resource base is depleted: 1) replace the asset with new production, or 2) deplete the asset and close down operation, as in the South African gold mining model referred to later in this paper. An understanding of the

Jan 1, 1985