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By A. H. Dierker

Next to the metal itself, molding sand is the most important raw material used in the manufacture of steel castings. There are no accurate figures available but probably it would be safe to say that the average steel foundry uses approximately 1000 lb. of new molding sand per ton of castings produced. With untreated sands costing from two to four dollars (in some extreme cases it may run as high as eight or ten dollars) per ton delivered at the foundry siding, molding sand is an important item in the cost of making castings, and any information that may help to reduce this sand consumption should be of interest to the industry. Fundamental Considerations In a general way, molding sand in the average steel foundry passes through the cycle shown in Fig. 1. This diagram indicates that if all of the sand could be returned from the shakeout floor to the mixer no new sand would be required from the stock pile and molding costs would be reduced accordingly. Unfortunately, for reasons to be discussed later, it has heretofore been necessary to dilute the used sand constantly with new raw sand in order to maintain the properties that are essential to the production of satisfactory molds.

Jan 1, 1930

By Paul A. Bailly

“For innovative leadership in bringing about a quantitative rationality to mineral exploration; for the impact his efforts and wide respect have made on national mineral policy issues; for his effective managerial role in major mineral discoveries; and for his lecture, ‘Managing for Ore Discoveries.’”

Jan 1, 1980

The Commissioner of Education has issued a call for a public conference on business training for engineers and engineering training for students of business. This conference, national in scope and character fully representative of all interests, will be held in Washington, D. C. on June 23 and 24. Educational institutions, commercial organizations, and educational and engineering societies will be given an opportunity to state their views. Engineers, educators and business men will be invited to discuss the following major topics: Business Training for the Engineer; Engineering Training for Commercial Enterprises; Significance of the. War Experience for Engineering Education; Training of the Engineer for Foreign Projects. This conference has been called on behalf of the Conference Committee on Commercial Engineering. This Committee is composed of administrative professors in engineering and commerce from several of the large educational institutions and representatives from the American Institute of Mining and Metallurgical Engineers, Society for the Promotion of Engineering Education, The American Society of Civil Engineers, American Institute of Electrical Engineers, American Society .of Mechanical Engineers, and a committee f fifteen on Educational Preparation for Foreign Service.

Jan 6, 1919

By W. Myron Davy

For more than a decade the use of the metallographic microscope, by mining geologists, for examining ores has been increasing and conclusions founded upon examinations made by it are found in several recent professional papers of the United States Geological Survey as well as in our technical publications. But most mining men have been slow to realize the positive value of this instrument in their daily work. The reason for this condition is not hard to find. The varied applications, the simplicity of preparation, and the methods of studying a polished section of ore have not been widely published. Papers in technical periodicals have been profusely illustrated by photographs of such sections, special refined methods of procedure for laboratory work have been described, and complete and detailed schemes of identifying the ore minerals have been published in book form.1 But simple and easily applied directions and, what, is more important, light, compact, and inexpensive equipment have not been available. The simplest microscope obtainable is intended for laboratory use and is much too bulky for the average field equipment; at present it costs about one hundred dollars for the instrument alone. Methods previously described for polishing specimens have necessitated electrically driven lap wheels, which are found only in permanent installations. It is small wonder that the examining mining engineer, field geologist, resident engineers, and mill men have looked upon the subject as being too involved for the field and have assigned it to the laboratory investigator. The writer has been interested in this question for some time from the viewpoint of his own work. Being handicapped by the difficulties enumerated, he has designed an outfit that has proved very useful. It is described here and its. applications shown in the hope that it may be of equal value to others, and that a start will be made toward popularizing

Jan 8, 1920

By Edgar Kendall

A KNOWLEDGE of the fundamental principles of locating, sampling, testing and evaluating materials is essential in prospecting for mineral aggregates. In this discussion, mineral aggregates will be considered sand, gravel, crushed stone and slag that are used as materials of con-struction. The quantity of mineral aggregates produced in the United States during the year 1935 for such purposes was roughly 165,000,000 tons, about 60 per cent of which was sand and gravel, 37 per cent crushed stone and 3 per cent crushed slag. The total value of this material was approximately $100,000,000. It is apparent therefore that the prospect-ing for suitable mineral aggregates is of considerable economic importance. In prospecting for mineral aggregates, the methods employed are the same whether the organization is large or small. In the large organiza-tion there may be available geologists for locating sources of supply, a land acquisition department to arrange for the necessary options or permits, engineers to do the sampling, a laboratory for testing, and a board of consulting materials engineers to make the final selection. Even small organizations must follow the same general procedure, though the respon-sibility for the selection of aggregates may rest with one man, who may or may not be an engineer, but who must depend entirely upon his own judgment.

Jan 1, 1939

By R. Agarwal, S. Boshkov, M. T. Wane

The majority of the work done in the field of rock mechanics uses as a basis for analysis the classical linear theory of elasticity. Most workers in rock mechanics realize that removing the assumptions of homogeneity and isotropicity will bring the analysis of stress-strain relationships for geologic materials closer to reality. However, the algebra involved in reducing these restrictions is usually heavy. It is the purpose of this paper to relax the condition of isotropicity to that of orthotropicity and examine the sensitivity of this change for some simple geometries. In addition some necessary relationships between stress and strain for orthotropic materials will be developed. The recent years have seen an increasing interest in the field of rock mechanics. This is amply demonstrated by the number of articles appearing in the technical literature. The majority of these articles use as a basis for analysis the classical linear theory of elasticity. In addition, the assumptions that the material under consideration is elastically homogeneous and isotropic reduce the number of constants necessary to write an analytical relationship between stress and strain to two, e.g., Young's modulus and Poisson's ratio. Most workers in the area of rock mechanics realize that removing the conditions of homogeneity and isotropicity will bring the analysis of stress-strain relationship for geologic materials closer to reality. However, the algebra involved in analysis without imposing these restrictions is usually heavy. It is the purpose of this paper to relax the condition of isotropicity to that of orthotropicity and examine the sensitivity of this change on stress concentration for some simple geometries. In addition, it is shown that the expression for maximum stress concentration for some simple geometries considered can be further simplified if further assumptions are made. The maximum stress concentration, under these additional simplifying assumptions, is shown graphical1y. In the linear theory of elasticity, generalized Hooke's law assumes the following form

Jan 1, 1965

By J. L. Rodda

THE desirability of a uniformly sized abrasive for metallographic polishing has probably been recognized in a general way for a long time. Certainly all metallographers have recognized the damage that can be done to a polished surface by a piece of grit, especially if one of the softer metals, such as zinc or aluminum, is being polished. It is to be doubted, however, whether many metallographers have had any adequate idea of the particle size of the abrasives they were using or of the range of sizes encountered in any given grade of abrasive. At any rate, the descriptions of abrasives for metallographic work found in the literature are generally very meager. It was with the idea of securing an abrasive with a limited range of particle size that a study of this problem was commenced. Commercial abrasives, even when recommended for metallographic work, are made up of particles of varying sizes. One such abrasive contains some particles so fine that they remain in suspension for days and other particles so coarse that they settle at the rate of 3 in. per minute. It is evident that the coarsest particles are over 100 times the diameter of the smallest ones, or over 1,000,000 times the volume. The hopelessness of avoiding scratches under these conditions is evident. Vanderwilt1 has described a laboratory method for grading abrasives in which the elutriator is used. Le Chatelier's method, described by Goerens,2 also makes use of an elutriator. However, the elutriator is too slow for this purpose and requires too delicate a control for the range of sizes desired. The method of stirring up the abrasive in water, allowing it to settle for as given time, then drawing a measured depth off the top of the suspension, has been finally adopted as the simplest proce-dure. The largest particle in a given portion is. then determined by Stokes' law:3

Jan 1, 1931

By F. E. Harris

IT has been said that carbon is "ubiquitous" with reference to iron alloys. Certainly at temperatures where carbon and iron form the solid solution, austenite, it may be readily added to, or removed from, steel surfaces. Differences in concentration potential are the sole requirements for carbon flow. To measure the rate of carbon flow, a proportionality factor, D, is arbitrarily expressed in units of (length)2 X (time)-1. If the term used for carbon concentration is weight pct C, as is customary, then a factor must be found, changing this term to one of weight per unit volume when the diffusion coefficient, D, is used in flow formulae. The determination of D values for carbon is complicated since D varies with the concentration itself. The Matano method has often been employed for systems involving a variant D. This method expreses an evaluation of unsteady flow whereby .0 is given a relationship with the numerical value of C-X slopes. The author contends that this solution is incorrect, except when D is invariant. The primary purpose of this paper is to support this contention. Here diffusion is controlled under two conditions of flow. The first part deals with the steady state; the second part considers unsteady flow under definite restrictions. Beginning with the fundamental concept, the development is continued until equations for C-X curves are obtained. The solution is then subjected to experimental data. It is realized that a great amount of reliable data is required for a rigorous proof. No such research is claimed. Instead an attempt is made to set forth the physical significance of the diffusion mechanism, and particularly to express the factors which influence the flow of carbon in austenite. Of equal significance is the implication that gaseous media may be employed with reasonable accuracy in making these determinations. THE STEADY STATE DIFFUSION OF CARBON IN AUSTENITE The fundamental experiment defining diffusion in solid metals may be readily performed for carbon in gamma iron.1 For this experiment a thin plate of medium carbon steel is chosen. The surfaces of this plate may be taken as two parallel planes which may be considered infinite for points well in the center of the planes. These two planes are held at different concentrations of carbon at a constant temperature. This temperature, 1700°F for example, is one where the single phase, carbon in solution with gamma iron, exists. When these conditions are held for a sufficient time the concentration of carbon of the different points of the solid settles down towards its steady state value. At points well removed from the ends, the concentration will remain the same along planes parallel to the surfaces of the plate.

Jan 1, 1947

By H. A. Wilmeth

IN 1955, before planning an accelerated stripping program, Chino Mines Div. began an engineering study to improve data for estimating truck haulage costs for any future haulage layout. The study aimed to develop: 1) significant unit costs, 2) a method of estimating travel time from which truck needs and future stripping rate could be determined, and 3) yardsticks of performance to measure haulage efficiencies. It was suggested that to provide significant unit costs, expense accounts should offer management two types of cost control information-unit cost yardsticks with which monthly unit costs could be compared and unit costs for estimating future expenses for any haulage layout.

Jan 5, 1958

By Orville R. Lyons, A. C. Richardson

THE Coal Division of Battelle Memorial Institute, during the course of an investigation conducted for a coal producer, carried out extensive sampling of the fine-coal section of a preparation plant. The information obtained during the testing period was used to evaluate the overall plant operation and provided the basis for. recommended changes in the plant flowsheet. Included in the information were data for the results obtained when using a Bird centrifuge to dewater the particular coal being treated. At the completion of the investigation, the coal producer gave Battelle permission to publish the operating data for the Bird centrifuge in order to make this information available to the coal industry. The authors wish to take this opportunity to express their appreciation to this company and its officials for their willing cooperation in the matter of publication. Description of Preparation Plant: The preparation plant on which the data were obtained is primarily a jig plant. The coal being washed is a low inherent moisture, friable, Pocahontus-type. The washed coal from the jig is dewatered and sized at 1/4 in. by a Parrish-type dewatering and sizing screen. The minus 1/4-in. coal and the underflow water from the shaker screen flow to a sludge tank where, after the coal settles, the coal is conveyed by a flight conveyor into a pump sump. The pump, a 300-gpm sand pump, delivers a mixture of fine coal and water to a Bird centrifuge which produces a dewatered cake and an effluent. At the time when the investigation was made, the centrifuge effluent was returned to the sludge tank and the cake product was mixed with a coarser size of coal prior to loading into railroad cars. The semiclarified water from the sludge tank overflowed into a pump sump from which it was pumped to the jig. As originally designed, the preparation plant was intended to operate with a closed water system but it was found, soon after operations started, that for various reasons this could not be done. In order to provide for removal of excess water from the system and to aid in maintaining the desired minimum percentage of solids in the circulating water, the plant was operated to provide from the sludge tank a continuous overflow of water and fine solids that was sent to waste. The centrifuge feed represents approximately 35 tons per hour of minus 1/4-in. coal in the form of a pulp averaging 38 pct solids. Sampling Procedure: In order to obtain basic data for determining the relationships existing in the fine-coal section of the preparation plant, samples were obtained for: (1) the centrifuge feed, (2) the centrifuge cake, (3) the centrifuge effluent, and (4) the circulating water. The sampling was arranged to start on a Monday, in order to begin operations with a sludge tank full of fresh water, and was continued long enough to allow sufficient time for fine solids to build up within the water system or for a two-day, four-shift operating period. All samples were taken at half-hour intervals except when plant stoppages occurred. After a stoppage the plant was

Jan 1, 1951

By Orville R. Lyons, A. C. Richardson

THE Coal Division of Battelle Memorial Institute, during the course of an investigation conducted for a coal producer, carried out extensive sampling of the fine-coal section of a preparation plant. The information obtained during the testing period was used to evaluate the overall plant operation and provided the basis for. recommended changes in the plant flowsheet. Included in the information were data for the results obtained when using a Bird centrifuge to dewater the particular coal being treated. At the completion of the investigation, the coal producer gave Battelle permission to publish the operating data for the Bird centrifuge in order to make this information available to the coal industry. The authors wish to take this opportunity to express their appreciation to this company and its officials for their willing cooperation in the matter of publication. Description of Preparation Plant: The preparation plant on which the data were obtained is primarily a jig plant. The coal being washed is a low inherent moisture, friable, Pocahontus-type. The washed coal from the jig is dewatered and sized at 1/4 in. by a Parrish-type dewatering and sizing screen. The minus 1/4-in. coal and the underflow water from the shaker screen flow to a sludge tank where, after the coal settles, the coal is conveyed by a flight conveyor into a pump sump. The pump, a 300-gpm sand pump, delivers a mixture of fine coal and water to a Bird centrifuge which produces a dewatered cake and an effluent. At the time when the investigation was made, the centrifuge effluent was returned to the sludge tank and the cake product was mixed with a coarser size of coal prior to loading into railroad cars. The semiclarified water from the sludge tank overflowed into a pump sump from which it was pumped to the jig. As originally designed, the preparation plant was intended to operate with a closed water system but it was found, soon after operations started, that for various reasons this could not be done. In order to provide for removal of excess water from the system and to aid in maintaining the desired minimum percentage of solids in the circulating water, the plant was operated to provide from the sludge tank a continuous overflow of water and fine solids that was sent to waste. The centrifuge feed represents approximately 35 tons per hour of minus 1/4-in. coal in the form of a pulp averaging 38 pct solids. Sampling Procedure: In order to obtain basic data for determining the relationships existing in the fine-coal section of the preparation plant, samples were obtained for: (1) the centrifuge feed, (2) the centrifuge cake, (3) the centrifuge effluent, and (4) the circulating water. The sampling was arranged to start on a Monday, in order to begin operations with a sludge tank full of fresh water, and was continued long enough to allow sufficient time for fine solids to build up within the water system or for a two-day, four-shift operating period. All samples were taken at half-hour intervals except when plant stoppages occurred. After a stoppage the plant was

Jan 1, 1951

By Richard Moldenke

So FAR as the quality of the product is concerned, the history of the production of pig iron for foundry purposes is one of constant retrogression. The steps in this deterioration began with cold-blast charcoal pig iron, then anthracite iron, coke iron; then gradually warm to hot-blast coke iron, with the charcoal furnaces also heating their blast to get greater tonnages, and finally the present day hot-blast coke irons with scrap additions to the ordinary burden that, according to one European report, have gone as high as 135 per cent. Parallel with this quality retrogression is the enormous increase in furnace tonnages from about 15 tons daily to over 1000 tons per day in exceptional instances of modern practice. The key to this situation is economic pressure. The effect is a growing differentiation between furnace production for gray iron and malleable foundries and for the production of commercial steel. As the foundry is often compelled to draw upon the pig irons made for steel purposes, for economic reasons, whereas the steel industry does not draw upon foundry pig irons proper, the situation is resolving itself into one of grave consequence for the life of the gray-iron castings industry, and hence the intensive present-day feeling in foundry circles for rigid specifications to govern the quality of pig irons sold for foundry use. In the discussion of a paper on the use of scrap in the blast furnace held recently in the Institute, a very pertinent remark was made by one of the participating furnacemen, who confessed that "the things found wrong by the foundryman with his iron were beyond his depth." It may be added that those things are also beyond the depth of most foundrymen who, however, know from their results that they are getting poorer castings today with many pig irons than they did with those same brands in former years. Under the former fracture buying, the foundryman at least could select the strongest metal, as judged by the sledge, from various brands of similar fracture and pig section, and his results proved the soundness of his conclusions. With the advent of iron analysis, and in spite of the growing uniformity of the metal through greater tonnage

Jan 2, 1927

By John T. Schamaun

Recent applications of explosives and blasting agents to rubble rock have led to requirements for more elaborate design and analysis methods. In most blasting uses, it is necessary not only to fracture the rock, but also to move the broken rubble in a predictable manner. Many in situ extraction techniques require rubblization to take place in a confined region where rock motion is a predominate factor in creating a permeable broken bed. In this paper, two analytical methods are presented which describe the large rubble motion during blasting. These methods provide the blast designer with a tool for evaluation and further refinement of blasting patterns and timing sequences. In both these methods, the rock medium is represented by a series of discrete, discontinuous regions. The use of discontinuous techniques rather than the classical continuum methods, results in better approximations to the rubble motion. These regions are set in motion by pressure loads from the explosive. The motion of these regions is then calculated numerically using interaction laws between regions in contact. The basis for these models or methods is presented along with the background for selecting explosive pressure loads and rock mass material behavior. Typical examples, including both cratering and bench blasting geometries, are discussed which illustrate the use of these models to predict rubble motion. Such engineering representations appear to provide a practical method for use in predicting rubble motion and a tool for design evaluation of blasting in confined geometries.

Jan 1, 1984

By James E. Chapman

The observations here presented are not those of an expert accountant, but of one who, while he has seen considerable service in the accounting departments of large companies, has spent more time in engineering and operating. This paper is intended to cover, in a measure, mine accounting for small mines, as distinguished from the elaborate systems, requiring many persons in the accounting department. I shall attempt to outline a system embracing the essentials of accounting, and simple enough in form to permit one or two persons to carry it on from month to month, in sufficient detail to be able to tell quickly the grade of ore, the prices received for metals, costs per ton for mining and milling, costs per foot for development, upward or downward tendencies in costs, ore settled or in transit, cash on hand, stocks of supplies on hand, efficiency of labor, etc. As in all accounting, there are two main divisions: that of revenue received for what is sold, and that of disbursements made for what is bought, so in mine accounting we have to consider chiefly the income derived from sales of ore or concentrates, and the expenses incurred in producing the said ore or concentrates in a marketable condition. I. Income The revenue of a mining company from the sale of ore or concentrates comes in the form of remittances, accompanied by settlement sheets made out by the buyer of the mine product, such as a smelting company. It is the duty of the mine accountant (or the person to whom this is assigned in connection with other work) to check these settlement sheets, against both the mine weights and assays, and the schedules of prices arranged between the mine and the smelter. As a rule, quotations for silver, lead, zinc, copper and other metals enter into the settlements, and require checking, as do also bills of lading. Each step of the arithmetical calculation is also checked.

Jan 1, 1917

By Cyril Jones

13.9-1. Introduction. Any mining venture or project is undertaken with a view of gaining some benefits, which, with the modern limited corporation, means earning a return to the stockholders for the use of their funds. Thus, any manager, when confronted by an opportunity of expending funds, must realize that the funds should generate a satisfactory return. The problem then becomes one of how the manager should best expend, if he should expend, funds for opportunities that become available to him. In the evaluation of a mineral property, or of a project within an operating mineral property, there must be cognizance of the fact that the final return is dependent on many factors that are not present in other industries. The primary factor in mining operations is the orebody, which has a diminishing life. This diminishing life gives the decision maker a range of choices; for by expending more capital for a larger plant, he can work the deposit out in a shorter period (16). This may, in fact, maximize the return on the investment. Alternatively, he may wish to maximize the total profits, a course which usually requires a lower capital investment and allows a longer working life for the deposit before final depletion. Other factors that have great importance in the evaluation of mining projects are the taxation treatment of mining profits from the viewpoint of depletion, depreciation, and investment credit. Investment opportunities involve expending funds at the present time in return for future benefits. These future benefits have a degree of risk in that the annual amounts of benefits and their duration cannot be fore- cast accurately. The treatment of risk in economic analysis involves the quantification of the degree of variability of the expected future benefits and also of the initial capital expenditure. This treatment in mineral exploration may be extended to cover the initial search for an orebody

Jan 1, 1968

By J. S. Wakeman

INTRODUCTION The primary purpose of comminution circuits in the mineral industry is to reduce an ore to a particle size that will permit separation of the valuable minerals from its gangue constituents. Wide variations in the mineral content and physical characteristics can and do occur throughout a given mineral deposit From the standpoint of their effects on the comminution characteristics of an orebody, these variations may not be identified by the normal sampling and analysis procedures utilized to delimit an orebody and to characterize its grade distribution. The proper design of a comminution circuit for a mineral deposit is very important to the success of that enterprise. It is also an expensive unit process both from the standpoint of capital and operating costs. It is, therefore, essential that any sampling program be designed to identify the variations that may occur that will affect this circuit. Because of the variety of comminution systems that are available, it is also essential that the sampling and subsequent evaluation program be sufficiently comprehensive to identify potentially inappropriate systems or flowsheets. It would be impossible to describe in a single chapter the techniques and approaches that should be utilized for sampling every type of orebody. Each orebody is unique and requires a sampling and testing program designed to its specific requirements for exploration, characterization and circuit design. The following is a general discussion of the guidelines to be used and considerations to be made in establishing such a program. SAMPLE SELECTION When sampling an ore deposit for the purposes of equipment and flowsheet selection for comminution, it is important that the sample composites for grind testing be chosen on the basis of how they will affect the comminution circuit rather than just how they might affect the subsequent metallurgical operations. For example, grindability, classification and liberation size characteristics are more important to the comminution circuit than ore grade. Mineral deposits may contain a multiplicity of ore types that can vary extensively in the dissemination of minerals and optimum liberation size requirements; and may also vary as much as 100% in ore hardness. The accumulation of samples for grind characterization should be done in such a way as to allow the identification of this variation. A proper mineralogical evaluation of the samples obtained to characterize an ore deposit can be a great aid in identifying the individual ore types within the deposit

Jan 1, 1982

By P. Sen, H. B. Barani, P. Sen Gupta

A critical review of the various separation efficiencies reported in literature has been made. Most of the relationships used for evaluating the performance relate to screening, classification, or concentration operations and are applicable to single-stage, two-component systems only. In the present work, a much simpler approach has been used for assessing the separation process irrespective of the type of operation and this has been extended further to obtain an expression for a multicomponent feed and multiproduct (from a multistage operation) system.

Jan 1, 1980

By Byron S. Gottfried, Guan Qi Zhao, John W. Tierney

Equations for predicting the performance of vacuum filters and centrifuges used for coal dewatering are presented. These equations are the basis for a dewatering module which has recently been added to the Coal Preparation Plant Simulator developed at the University of Pittsburgh under the sponsorship of the Department of Energy. The module provides for mechanical degradation in the centrifuge; loss of fines to centrate or filtrate; changes in size and gravity distribution; changes in ash and sulfur content; as well as final moisture content of the dewatered product. Inputs to the module are the flow rate of the coal to be dewatered, a washability analysis of the coal, and parameters describing the operation of the vacuum filter or centrifuge. Typical results obtained using the module are presented. There are adjustable parameters which can be varied to match plant operation or experimental data if desired.

Jan 1, 1983

By William P. Lohden

INTRODUCTION It is recognized that, for a variety of reasons, some companies in the mineral industry today are by no means cash-rich and, in fact, are reporting a growing proportion of long-term debt in their capital structures. A review of recent balance sheets of small, medium-size, and some larger companies, indicates that a fair number still have substantial positions in cash equivalents such as U.S. government issues and other short-term money market instruments. In part, this paper concerns itself with companies which have sufficient cash and equivalents and/or cash generation to internally finance mining projects or expansions but which, for some reason, choose to borrow funds. Misconceptions which appear to frequently underlie so-called "leveraging" decisions are explored in this paper. Also considered arc' those circumstances under which any company, including one that is cash rich, should consider borrowing for a project in an amount beyond what would otherwise be necessary based upon its internal financing ability. I do not attempt to cover the raising of equity capital in public markets in this paper. OVERALL RETURN ON INVESTABLE CASH If you approach an individual with an investment which can be financed from savings, or by borrowing at a rate higher than one is earning on savings, that individual will quickly tell you that to pay interest at a rate higher than is being earned on savings would reduce overall income. Assuming that additional investment opportunities are not currently being considered, the individual concludes that a draw-down on savings, leaving a cushion for contingencies suited to individual circumstances, is the correct financial decision. For reasons discussed later, the simple mathematical logic leading to this conclusion tends to become obscured at the corporate level. When Leveraged Studies Are Inappropriate or Premature Surprisingly, I have heard of a number of companies that could afford to finance an investment solely with internal funds, which have made DCFROR (i.e. discounted-cash-flow rate-of-return) studies not only on a 100% equity basis but also on a leveraged basis. Certainly, a leveraged study would be appropriate if additional projects were competing for more capital than was available internally. Often, however, other projects are not far enough along to warrant a leveraged study and there is some danger that a project may be undertaken because it has an estimated acceptable rate of return, on a leveraged basis, that is not ultimately earned because some of the other projects are postponed or abandoned and borrowing is less than expected. For the above reasons, until it has been determined that (1) borrowing is a reasonable certainty for a particular project and (2) the timing and amount to be borrowed has been determined within a reasonable range of accuracy, I believe it is inappropriate and misleading to calculate DCFROR for a project other than on a 100% equity basis. Even when there are several projects currently competing for funds and borrowing will be required to finance one or more of them, using the common yardstick of calculating DCFROR on a 100% equity basis is a safer method to initially evaluate and compare the attractiveness of the projects. Many companies, whether they would have to borrow or not, will reject projects that on a 100% equity basis do not meet their minimum rate of return standards. Some companies which have to borrow will undertake a project provided the project's DCFROR on a leveraged basis meets its minimum return standards. The danger of this approach is that even moderate shrinkages of estimated cash flows could plunge return below

Jan 1, 1985

TO THE, BOARD OF DIRECTORS OF THE AMERICAN INSTITUTE OF MINING AND METALLURGICAL ENGINEERS Gentlemen -The following report covers briefly some of the more important activities of the Institute during the year 1923. In my report for the year 1922, I drew attention to the falling off in membership of the Institute due to the depressed condition of the mining industry in several lines and the inability of many of our members to find profitable employment in mining or its associated branches. A number who were unemployed during 1922 established connections during 1923, but a still greater number have been forced to resign or drop their membership during 1923 Fortunately, the number dropped is not so great as in the previous year. The Employment Service conducted by, the four Founder Societies bears witness to the trend in business For the young men just out of college, there are plenty of opportunities at small salaries, there are plenty of opportunities for them as laborers; but for the mature members, those of experience, there are few calls During the last eighteen months, our Employment Service has been able to place only six of our members out of every hundred engineers for whom it has found work. Another loss which this Society has suffered, but which is not felt so keenly by our sister societies, is in its foreign members. The A. I M. E. has always had a large foreign membership, but of recent years exchange has been so heavily against many European and South American coun¬tries that a large number of members residing abroad have been compelled to relinquish their membership Almost invariably these members express keen regret because of the necessity that confronts them, and almost invariably the writers express hope that present conditions will not last long and that they will soon be able to ask for reinstatement. Having stated the darkest side of the picture first, it may now be drawn to your attention that in spite of these losses the number of persons applying for membership was decidedly encouraging. From the quality point of view, the membership has not gone back¬ward The Membership Committee has declined to recommend many

Jan 1, 1923