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By Paul A. Rittenhouse

First of all, I want to thank John Dunlap for asking me to this AIME meeting in Denver. I was first introduced to Denver and The Rocky Mountains more than ten years ago and immediately decided it was one of the most attractive spots in the world. I've come back many times since and still welcome any opportunity to return, even if it means I have to prepare and give a paper on potash. When John Dunlap gave me this assignment, he told me that the program would include papers on the geology of potash, papers on new discovered potash deposits and new mines and asked me to discuss potash from the commercial point of view. He also asked me to include a supply/demand outlook for potash. However, one thing he did not mention was "how far into the future he wanted me to look" and it seems to me the time element is a crucial factor to you who are both geologists and miners as well as to me. In your case, you have to look far enough into the future to give you time to explore, find, evaluate, develop, and bring into production a commercial deposit. My mining associates and friends don't agree on how long that takes but it's probably somewhere in the range of eight to fifteen years. But, they all agree on one thing and that is that the time required is continually getting longer. Now my time problem is just the opposite. It is "relatively" easy, and I stress relatively, to identify and evaluate the importance of the various factors that impact on both the supply of and demand for a commodity such as potash if the time period is today. It gets a little tough if one has to project into tomorrow or next week or next month. And when we start talking in terms of a year, five years or ten or fifteen years, things really get sticky and the old crystal ball becomes mighty cloudy. But we economists and forecasters are not known for our temerity so let me get on with the job at hand and take a look at the world potash supply/demand outlook.

Jan 1, 1978

By S. M. Rupprecht

A deposit to be mined by underground methods can be accessed by a number of methods: ? Adit ? Decline or ramp ? Inclined shaft ? Vertical shaft. Adits are an economical approach when the orebody is above the general floor elevation i.e. suitable in hilly or mountainous terrain. Incline shafts are limited to relatively shallow deposits, and because they are developed on an incline, development lengths for a given depth are the three to five times longer than for a vertical shaft. Vertical shafts are the preferred method for deposits deeper than 300 m but the development rate is slow and construction costs are very high. Declines or ramps offer early access to shallow deposits, which develops the ore body expediently, but are generally developed at a gradient of approximately 12 per cent. Decline haulages have become an attractive alternative to shaft hoisting, and over recent years the role of decline access has become more widespread throughout South Africa. Traditionally, South Africa has enjoyed the use of shaft systems, largely due to the large knowledge base of mining the Witwatersrand Basin, where vertical and inclined shafts were the norm. South Africa has also had the advantage of cheap electricity, giving shafts a definite economic advantage. However, in recent years the national power utility ESKOM has undergone an expansion programme that has led to tariff increases of nearly 100% over a three-year period. Based on the changes in electricity tariffs and technological improvements to underground haulage trucks, the economic inputs to access development have changed. This paper reviews mine access for shallow deposits as currently applied in South Africa. Based on current economic inputs, the paper investigates at what point a vertical shaft would be more economical than a decline system utilizing typical South African mining equipment.

Jan 1, 2012

By William A. Gibson, Kenneth P. Neumann

In 1967, development of the Cyprus Thompson Creek molybdenum deposit began near Challis, ID. The first mining claims were staked on an intrusive rock out-crop. Exploration continued for 14 years. In 1978, the decision was made to develop the deposit. In Dec. 1980, approval was received for the environmental impact statement and facilities construction and waste rock removal began. By the middle of 1983, 126 Mt (139 million st) of rock had been removed and all facilities completed. Location The Thompson Creek project is located about 58 km (36 miles) southwest of Challis in Custer County, in south central Idaho. The mine and mill are situated between 2.2 and 2.6 km (7,217 and 8,530 ft) in elevation. The project is located in an isolated area. Surrounded by mountains, it is adjacent to the Sawtooth National Recreation Area. The Salmon river is 8 km (5 miles) south of the project. The project claim block is lo-

Jan 1, 1984

By Nick Barton, Khosrow Bakhtar

Two plate load tests of 1 m2 area were per- formed in a pressure tunnel at the Rocky Mountain Pumped Hydro Project. Reaction for the 250 tons loading in this 10.5 meter diameter tunnel was provided by deeply anchored, diverging rock bolts, eight per load frame. Pressure build up to 2.5 MPa was provided by circular flatjacks. Rock deformation was recorded at depths of approximately 0.3, 0.9, 1.2, 1.8 and 3.3 meters using axially located multiple position borehole extensometers. The tests were performed in representative units of massive shale and thin to medium bedded siltstone. Stress was built up in four equal steps to 2.5 MPa, held constant for one week for creep monitoring, then unloaded, reloaded and unloaded over a period of one day. The most deformable unit was the massive shale which exhibited 1.3 mm of permanent deformation at the surface after the first loading and unloading cycle, which included 0.36 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 2.6 mm, following a maximum deformation at the surface of approximately 3.6 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 0.4 GPa when loading, and 0.3 GPa when unloading. The thin to medium bedded siltstone exhibited only 0.17 mm of permanent deformation at the surface after the first loading-unloading cycle, which included only 0.05 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 0.27 mm, following a maximum deformation at the surface of approximately 0.53 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 6.2 GPa when loading and 21.9 GPa when unloading.

Jan 1, 1986

By Paul D. Martinka

Coal is the principal energy source for the American Electric Power System (AEP System), which generates and delivers more electric energy to its customers within a seven-state area than any other investor- owned electric public utility. The company expected to burn 21.5 million tons of coal in 1968 at its coal-fired, steam-electric generating stations. About 4.3 million tons, representing 20% of the firm's total annual requirement, was the expected yield of its captive coal mines; the other 17.2 million tons were to be purchased from commercial mines in Ohio, West Virginia, Virginia, Kentucky, Indiana, and Illinois. American Electric's largest captive coal mining operation is conducted by Central Ohio Coal Co., a subsidiary of Ohio Power Co., at the Muskingum mine in the Meigs Creek No. 9 coal field of southeastern Ohio. The mine was started in 1953 to produce the coal requirements of the Philo and Muskingum River generating plants of Ohio Power Co., and it has been supplying their annual requirements in the range of 2.5 to 3.5 million tons since that time. The Muskingum River plant is one of the major steam-electric generating stations on the AEP System. This plant began operation in 1953 with a 215-megawatt unit and now has five generating units with a total plant capacity of 1,495 megawatts. The addition of the 615-megawatt Unit 5 in the summer of 1968 increased the total annual coal requirement of the plant from 2.6 to 4.4 million tons. In order to produce the additional 1.8 million tons of coal for the Unit 5 addition and to exploit the remaining coal reserves at the Muskingum mine most economically, Central Ohio Coal Co. has undertaken a $41 million expansion and modernization program, involving the world's largest dragline and an electric railroad.

Jan 1, 1969

[Page Minutes 5 Present Status of Petroleum Industry 9 F. M. Van Tuyl. Developments Along the Line of Low Heat, Carbonization 13 A. C. Watts. Uses for Fine and Pulverized Coal 14 C. A. Allen. Have Mining Engineers Accepted All That Developments in Machinery Apply? 16 R. Dawson Hall. Coal Mine , Accidents and State Mining Law 23 D. Harrington. Harmony and Co-Operation 26 H. F. Nash. Personal Dangers 28 John Bevan. Methods of Improving Safety and Health Conditions 29 C. A. Allen and A. L. Murray. The Economic Relation of Accidents and Preventable Diseases to the Coal Mining Industry 39 Recent Developments in the Use of Electricity in Mines 43 Graham Bright. Discussion of Graham Bright's Paper 48 Mine Safety Work at Dawson, N. M 49 W. F. Murray. Mine Safety Work 54 Eli Follett. Wire Rope in Mining Operations 56 James F. Howe. Discussion of F. E. Shepard's Address 69]

Jan 1, 1922

By Z. Yang, R. W. Smith, Jr. Wharton

"Microorganisms have the ability to remarkably adsorb and/or absorb heavy metal ions. Hence they are being studied widely as a means of removing metal ions from aqueous solutions both in order to clean up toxic streams and to recover valuable metals from these and other streams. It is often difficult to harvest organisms such as bacteria and unicellular algae since they are usually too small to be readily screened out. Froth flotation may prove to be a feasible method to harvest such organisms subsequent to the ad/absortion of the metal Ions. The present paper discusses the surface/electrokinetic properties of microorganisms and the modifier-collect conditions under which they should float. The zeta potential of the green alga Chlorella vulgaris was measured in the presence of AI(III) and Pb(II) ions and in the presence of dodecylammonium chloride and sodium dodecylsulfate. Present and past data suggest that the organisms should behave similarly to other finely divided, charged (polar) solids with their behavior sometimes modified by the non-polar surface regions present.IntroductionThe overall field of bioengineering is growing at a remarkably accelerating rate. Hydrometallurgy and mineral processing are included among those disciplines where there has been actual or proposed commercial use of bioorganisms. Further, the actual or proposed use includes bacterial enhancement of leaching of a number of different types of ores (1-5), modification of the flotation or oil agglomeration separation of minerals by bacteria (6,7) and microorganism (algae, bacteria or fungi) concentration of metal ions present in effluent or other mineral processing or hydrometallurgy aqueous streams (8-23)."

Jan 1, 1988

By C. T. Harper, B. J. Fryer, R. P. Taylor

"IntroductionThe Maurice Bay deposit is one of a number of uranium deposits that have been found in recent years in the Athabasca Basin of northern Saskatchewan (Tremblay, 1982). This deposit, along with the others, belongs to the unconformity type deposits (Beck, 1977). They are, for the most part, polymetallic, being characterized by a suite of metals which include U, Ni, Co, Cu, Pb, Zn, Mn, V, Ag, Au, Pt-group elements, S, As, Bi, Se, Te, and Mo, some of which, besides U, are present in economic concentrations (Amok, 1974; Ruzicka, 1975; Tapaninen, 1976; Hoeve and Sibbald, 1978; Dahlkamp, 1978). The Maurice Bay deposit was known to be a small low grade deposit in which the ore was essentially monomineralic, consisting mainly of pitchblende (Harper, 1978). However, the occurrence of trace amounts of some of the elements common in the larger polymetallic ore bodies (e.g. Key Lake, Cluff Lake D) was anticipated. Thus a lithogeochemical sampling project was undertaken in 1979 across part of the Maurice Bay deposit (Harper, 1979). Major oxides (SiO2, Al2O3, FeO, Fe2O, MgO, CaO, K2O, Na2O, MnO, P2O5, and TiO2) and a group of the most common trace metals (U, Ni, Co, Cu, Pb, As, Au, V, and Se) were analyzed to determine whether any elemental patterns (halos or depletions) could be detected which would reduce the number of pathfinder elements needed for exploration purposes. In addition to the above metals, Th was also checked because some conglomerate strata in the Maurice Bay area are known to be thorium-enriched (Harper, 1978). Only the trace metal distributions will be discussed in detail in this report.General GeologyThe Maurice Bay area is underlain by three major groups of rocks, the White Lake metamorphic complex, an unnamed granodiorite complex, and the Athabasca Group, described previously (Fig. 1; Harper, 1979). Table 1 summarizes the stratigraphic features as deduced by geological mapping and the examination of drill cores."

Jan 1, 1986

By DR. RICHARD RATHBUN

(Washington Meeting, May, 1965.) THE remarks of Dr. Rathbun in his address of welcome render it unnecessary that I dwell either upon the history or aims of the National Museum, and enable me to proceed at once with a brief descriptive outline of the Department for which I am responsible, and this with particular reference to that division devoted to applied geology. The amount of geological material brought together prior to 1876, under the various Congressional acts quoted, was, though valuable, comparatively small. It consisted mainly of the collections made by Professor J. D. Dana and his assistants during the Wilkes Exploring Expedition; by the various geologists accompanying the surveys of the Pacific railroads in 1854-55; the Surveys West of the 100th Meridian under the direction of the Engineering Corps of the Army; the United States geological surveys under direction of Dr. F. V. Hayden ; and the various Land Office surveys. Prior to 1873 there were no paid assistants to care for these collections. They were studied, if studied at all, by " collabrators," so-called, several of whom had offices and even sleeping apartments in the Smithsonian Institution. In the list of these collaborators are found such names as Conrad, Cope, Gabb, Leidy, Lesquereux, Meek, and Newberry. The building now occupied by the National Museum was designed primarily to make room for the great mass of material secured in 1876 at the close of the Centennial Exposition in Philadelphia. As completed in 1880, it afforded opportunity for expansion and incidental organization on much more practical basis than had previously existed. This found expression in the creation of numerous departments with salaried officials to take charge of the various collections. With the appointment of Dr. George W. Hawes to the position of Curator of Geology and Mineralogy, in 1881, and Dr.

Jul 1, 1905

By F. L. Wideman

This report describes the sinking of No. 3 shaft at the Westvaco mine. It is one of a series of publications of the Bureau of Mines on mining methods and practices in the United States. The Westvaco mine is in Sweetwater County, Wyo., approximately 23 miles northwest of the town of Green River (fig. I), There are no permanent habitations in the vicinity of the mine, and employees live in Green River or Rock Springs, Wyo., 14 miles us t of Green River. The mine plant is on a windswept, treeless plain, from which low buttes and flat-topped ridges rise. The altitude at the collar of No. 3 shaft is 6,351 feet. The climate is arid, with temperatures as low as 40° below zero in the winter. Blacks Fork, a tributary of the Green River and a perennial stream, flows near the mine.

Jan 1, 1959

By Georgy A. Cherkashov, Andrey V. Efimov, Yury S. Borodaev, Nadezhda N. Mozgova, Sergey G. Krasnov, Tamara V. Stepanova, Alexander M. Ashadze

"Abstract - A horizontal mineralogical-geochemical ore zonation with a southeast to northwest trending succession of Cu and Fe (Zn) main zones has been discovered in the Logatchev hydrothermal field (14°45??N Mid-Atlantic Ridge). The major minerals are pyrite, chalcopyrite, bornite, isocubanite, digenite and chalcocite. Zn-sulfide, marcasite and covellite are less abundant. Rare minerals are native copper, zincian copper and cobalt pentlandite (first found in oceanic massive sulfides), Cu and Cu-Co-bearing Fe-disulfides. Two groups of the main sulfide assemblages with different copper contents are recognized: Group I comprises assemblages with primary sulfides (isocubanite, chalcopyrite, pyrite and Zn-sulfide; Cu up to 35 wt% in Cu-bearing minerals); Group II contains assemblages with secondary Cu-rich sulfides (bornite, digenite, chalcocite; Cu ~60 wt%) as well as rare minerals (cobalt pentlandite, native copper and zincian copper). The assemblages of Group I formed at a temperature of about 300°C; the sulfur fugacity (log fs2 atm) at 300°C is probably 9.9. Relations between minerals of this group are contradictory, attributed to non-equilibrium environments, and no unified sequence of crystallization of minerals has been determined. Minerals of Group II replace, rim or cross the assemblages of Group I. Group II minerals crystallized in a distinct sequence (cobalt pentlandite-bornite-digenite- chalcocite-native copper), with increasing copper content from the start to the end of the depositional sequence. This may correspond to pH from 7 to 8 near Eh = -0.2 at 250°C. Minerals of this group were generally formed under hypergene alteration processes. Compositions of ore minerals were studied by means of electron microprobe analysis (EMPA) (150 analyses). Narrow composition fields were revealed in all main sulfides, which comprised known experimental data. ZnS contains 6.0 to 28.0 mol.% FeS, which is close to data known for other hydrothermal massive sulfides from the Mid-Atlantic Ridge (MAR). A common admixture in ZnS is Cu (0.16 to 1.32 wt%). Rare grains of unusual anisotropic Fe-disulfides, (Fe0.95Cu0.05)S2 and Cu(Fe,Co)9S20, were found among the ore minerals."

Jan 1, 1999

The selection of a particular machine for production drilling is the most critical drill evaluation the pit engineer is called upon to make. It is a true engineering design problem requiring value judgments. Generally, the procedure follows these steps: (1) Determine and specify the conditions under which the machine will be used, including such service factors as labor, site, weather, etc. (2) State the objectives for the rock-breakage phases of the production cycle of operations--considering excavation and haulage restrictions, crushing capacity, production quota, and pit geometry-in terms of tonnage, fragmentation, throw, etc. (3) On the basis of blasting requirements, design the drill-hole pattern (hole size and depth, in- clination, burden, spacing, etc.) (4) Determine the drillability factors and select the drilling methods which appear feasible for the kind of rock anticipated. (5) Specify the operating variables for each system under study, considering drill, rod, bit and circulation fluid factors. (6) Estimate and compare performance parameters, including costs. Major cost items are bits, drill depreciation, labor, maintenance, power and fluids. (7) Select the drilling system that best satisfies all requirements with the lowest over-all cost.

Jan 10, 1967

By R. M. Strong, Lauson Stone

Under the terms of the act establishing the Bureau of Mines, this bureau was authorized to carryon the work of testing and analyzing fuels which had been conducted by the technologic branch of the United States Geological Survey. That work included in its scope an investigation of the availability and uses ofliquid as well as solid fuels, for the original outline of the fuel-testing investigations contemplated, as soon as the funds would be available, a study of the liquid-fuel resources of the country and the making of related researches to determine how these resources could be utilized with greatest efficiency. Owing to the fact that many difficulties were being encountered in the adaptation of the heavier fuel oils for convenient use in internalcombustion engines, it was deemed best to begin the investigation of liquid fuels with tests of gasoline, a fuel in more or less general use. When this investigation began, the extensive introduction, especially by foreign powers, of liquid fuels for small naval craft had awakened much interest. However, the quality of gasoline was reported to vary materially in different countries and the quantity available was said to be rapidly decreasing, with the probability of a prohibitive increase in price. At the same time the claim was made that denatured alcohol, of fairly uniform quality, could be procured in all parts of the world, that unlimited quantities could be readily produced at a low cost, and that this fuel could be used much more efficiently than gasoline in internal-combustion engines. Such statements naturally led to a widespread belief that the time was near at hand when denatured alcohol would entirely displace gasoline as engine fuel. Therefore, the first investigations of the liquid mineral fuels logically embraced a careful series of comparative tests of gasoline and denatured alcohol in engines. A series of over 2,000 such tests was conducted at the Government fuel-testing plants at St. Louis, Mo., and Norfolk, Va., details of which are given in the following pages. The report is published by the Bureau of Mines because of the transfer of the fuel-testing investigations to this bureau.

Jan 1, 1912

By G. R. Hopkins

The petroleum-refining industry established a new record in fuel efficiency at refineries in 1936, when 597,000 B. t. u. of heat were required to refine a barrel of crude oil, compared with an average of 615,000 B. t. u. in 1935 (see fig. 1). The principal factor in the "indicated gain in fuel efficiency at refineries in 1936 was an increase in crude runs of 11 percent over 1935. A large part of the heat utilized at refineries is consumed elsewhere than under stills, or in ways quite independent of crude-oil distillation. In other words, as the operating ratio (crude runs divided by capacity) for refineries increases toward the maximum of 100 percent, the fuel requirements show progressively smaller increases and the average E. t. u. consumption per barrel of crude refined declines.

Jan 1, 1938

By A. C. Halferdahl

The Granby ores may be divided into three groups or classes. The No. I ore is a heavy pyrite, chalcopyrite, pyrrhotite, sulphide carrying some free silica, and calcite. No. 2 ore carries the same general group of sulphides as does No. 1, but in a lesser amount. The gangue is an altered greenstone. No. 3 ore has a smaller amount of sulphides than either of the others. Analyses of these ores is as follows: Cu. Si02 Fe. CaO S. Al 203 MgO No. I. Per Cent. 1.8 17.5 33.0 5.7 34.5 2.3 1.3 No. 2 Per cent. 2. 0 35. 6 23. 9 4. 3 I .5. 0 9. 2 6 .. 0 No. 3, Per cent. 1 . 5 40. 9 21 . 7 3. 0 I 1 . 3 11 . 0 5 . 4 The sulphide minerals in No. 2 and No. 3 ores occur largely in bands in the gangue, and for these portions comparatively coarse grinding serves to release the gangue. Drill cores show a certain dissemination of sulphides in portions of the rock, so that grinding to 5 per cent. + 65 mesh with 65 per cent.-200 mesh liberates the sulphide minerals very completely. The association of the sulphides is fundamental. The pyrite was probably deposited first and was followed by a portion of the chalcopyrite, or these two portions of the sulphide minerals were deposited together.

Jan 1, 1924

By R. G. K. Morrison

By arrangement between the Ontario Mining Association and Messrs. John Taylor & Sons, Mining Engineers, 6 Queen Street Place, London, E.C.4, the writer was engaged for a period of not more than three months to report on the rockburst situation in Ontario mines. This was later amplified, by mutual agreement, to include, at the expense of detail, visits to the larger camps where rockbursts had not occurred, to get a general picture of conditions and to discuss the subject with operators in their respective areas. Scope of Activities Visits were paid to the following properties for the purpose of enquiry and discussion; the underground workings of those mines marked with an asterisk were visited on one or more occasions: KIRKLAND LAKE * Macassa Mines, Limited * Kirkland Lake Gold Mining Co., Ltd. * Teck-Hughes Gold Mines, Limited * Lake Shore Mines, Limited * Wright-Hargreaves Mines, Limited Sylvanite Gold Mines, Limited Toburn Gold Mines, Limited EAST KIRKLAND & LARDER LAKE Upper Canada Mines, Limited Chesterville Larder Lake Gold Mtng Co., Ltd. Kerr-Addison Gold Mines, Limited Omega Gold Mines, Limited PORCUPINE * Hollinger Consolidated Gold Mines, Ltd. * Mcintyre Porcupine Mines, Limited * Dome Mines, Limited * Buffalo Ankerite Gold Mines, Limited Paymaster Consolidated Mines, Limited Preston East Dome Mines, Limited Pamour Porcupine Mines, Limited Broulan Porcupine Mines, Limited Hallnor Mines, Limited Naybob Gold Mines, Limited Delnite Mines, Limited Moneta Porcupine Mines, Limited DeSantis Porcupine Mines, Limited Coniaurum Mines, Limited SUDURY lnternational Nickel Co. of Can., Ltd. * Falconbridge Nickel Mines, Limited LITTLE LONG LAC AREA * Little Long Lac Gold Mines, Limited MacLeod-Cockshutt Gold Mines, Ltd. Hard Rock Gold Mines, Limited Bankfield Consolidated Mines, Limited Magnet Consolidated Mines (1936), Ltd. à PICKLE LAKE AREA * Central Patricia Gold Mines, Limited * Pickle Crow Gold Mines, Limited UCHI LAKE * Uchi Gold Mines, Limited McKENZIE ISLAND AREA Gold Eagle Gold Mines, Limited * McKenzie Red Lake Gold Mines, Ltd. * Cochenour Willans Gold Mines, Limited RED LAKE * Howey Gold Mines, Limited Hasaga Gold Mines, Limited Madson Red Lake Gold Mines, Limited

Jan 1, 1942

By Gary L. Hundley

The Bureau of Mines has devised a procedure to recover chromium chemicals from low-grade domestic chromites, which contain silicon and aluminum impurity levels that are too high to permit processing by present industrial processes. The Bureau procedure consists of reacting chromite with molten sodium hydroxide (NaOH) under oxidizing conditions to form sodium chromate (Na2Cr04). The reaction product is leached with methanol to remove the majority of the unreacted sodium hydroxide, then with water to remove the sodium chromate and the remainder of the sodium hydroxide. The sodium chromate product is recovered by evaporative crystallization from the aqueous solution. This report presents results of laboratory tests to determine the optimum fusion conditions and the chromium extractions obtained from several domestic chrotdte concentrates. These concentrates are from a variety of sources, including the Stillwater Complex in Montana, Kanuti River-Caribou Mountain, Red Bluff Bay, Kenai Peninsula, and Kodiak Island areas in Alaska, deposits in northern California, and a nickel-cobalt laterite from southern Oregon. All of these concentrates were successfully treated by the Bureau procedure. The best chromium extrac-tions obtained for each of these materials ranged from 69.5 to 98.9 pet.

Jan 1, 1985

By Michael J. Klishis

Accident rates continue to show that underground mining jobs areamong the most hazardous occupations in the United States and roof bolter operators continue to have one of the highest accident incident rates (MSHA, 1991) despite efforts by labor, government, and industry to reduce and eliminate work-related hazards. In the last two decades we have seen technical innovations such as the ATRS, and there has been an increased emphasis on hazard awareness through programs such as MSHA's REAP, but bolter operators continue to be injured and killed. Researchers at West Virginia University examined risk in the roof bolter's job and developed new approaches to accident and injury prevention. The study concentrated on the workers' job performance, machinery and the work environment to identify miner's risk and hazard exposure while bolting.

Jan 1, 1993

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By Joseph J. Wallace

1. From the standpoint of known recoverable reserves, the following is the order of importance of the beds: Upper Kittaoning, Lower Kittanning, Upper Freeport, Lower Freeport, Middle Kittaning, Clarion, Pittsburgh, and Redstone. 2. mown measured and indicated reserves in all beds, based on a minimum thickness of 14 inches and on 1,800 tons per acre-foot of coal in place, me estimated at 1,859 million short tons as of January 1, 1952. Of this, 1,351 million short tons me in beds 28 inches and more thick. Areas in each bed were omitted from the estimates because available data relative to the bed characteristics are too meager to make an estimate that conforms with the definitions of measured and indicated coal adopted for this study. Should future drilling or development prove reserves in these areas, such reserves should be added to the total estimated reserves.

Jan 1, 1953