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By Pedro L. Lizaur

INTRODUCTION The degree of success of an association between parties in establishing a new venture ultimately depends on three factors: a. the venture's underlying economic strength, which is based on the complementarity of the comparative advantages brought by each party to the negotiating table; b. the ability to reach an agreement which satisfies each party's objectives and constraints; and, c. the capacity to design and implement a funding structure which is consistent with the project economics. A thorough assessment of the venture's profitability and associated risks under alternative technical and economic scenarios is the basis for a sound "go" or "no go" decision. In-depth evaluation of the risks and rewards to each of the parties involved under alternative legal and financial structure must be the foundation for a long lasting "how to go" decision. The allocation of risks and rewards should be consistent with the objectives and constraints of all parties and the sharing mechanisms, established in the contract, should be flexible to assure the long-term stability of the agreement. Rapidly changing economic conditions during the last decade have had a dramatic impact on the envisaged allocation of risks and rewards between host countries and private investors. The effects of these changes, and the fact that the relative strengths of the parties involved may shift during the life of a project (e.g. before and after major capital investments have been made), have forced the renegotiation of a multitude of contracts. Therefore, the present and future stability of an economic agreement would depend not only on the originally designed provisions, but also on provisions which allow for the automatic adjustment of rewards to project sponsors under a variety of future economic situations. A pre-condition for the allocation and quantification of risks and rewards is the definition of standards of measurement used by each of the parties. This is critical in international negotiations when one of the parties represents the national interests of a country. The understanding and use of different standards for the measurement of rewards for risk taken between a government and private enterprise facilitate the negotiation of a satisfactory agreement. This is possible because certain trade-offs between the negotiating parties may have different relative values. STANDARDS OF MEASUREMENT OF REWARDS FOR RISK TAKEN The negotiating process takes a step forward when the parties are able to focus on their interests, explore different alternative solutions and then base results on a set of objective standards. Unfortunately, the parties frequently put more effort into "staking out" and defending positions, than into understanding their intrinsic interests. Moreover, when one party, such as a governemnt owned corporation, represents a country's national interests, the negotiation process increases in complexity. Private firms focus on commercial profitability, using discounted cash flow techniques such as NPV, IRR, or ROE. In contrast, the government is also concerned with the project's impact on the local socio-economic environment. Without entering into a discussion of alternative economic development theories and approaches, there exist several possible measures that could be pragmatically utilized by each party in evaluating the socio-economic impact of a project. The more complete measure is the National Profitability (NP). The NP is a discounted cash flow procedure similar in structure to IRR or NPV but in which the project's financial cash inflows and outflows and discount rates are adjusted to take into consideration the local conditions. The NP is calculated on an unlevered basis and all taxes and duties are removed from the project

Jan 1, 1985

By P. E. Schauer

During the initial nine-year deple-tion of the McKamie-Patton pool gas-condensate reservoir, the pressure behavior and fluid analyses indicated pressure maintenance by gas injection would be attractive relative to continued pressure depletion. As a result, a gas cycling program was inaugurated in Aug., 1949, which has since maintained reservoir pressure. In order to evaluate the benefits of this program, the recoveries for natural depletion and for cycling followed by blowdown were determined by calculating the fractional balance of the molar quantities of vapor and liquid remaining in the reservoir and produced at the surface for various stages of depletion. The results of the investigation show theoretical ultimate recovery due to the cycling program will be 42 per cent greater than would be realized under pressure depletion type operation. INTRODUCTION The benefits of gas injection pressure maintenance programs in condensate reservoirs have been recognized and qualitatively described in several papers1-8 during the past 15 years. Some of these papers also describe methods for calculating the increased recovery realized from cycling; however, as a rule, hypothetical reservoirs were used as examples".'.. This paper presents an evaluation of the pressure maintenance program for the McKamie-Patton condensate reservoir and includes a description of the fractional balance method employed to determine the benefits. Reservoir Development and Characteristics The McKamie-Patton pool, Lafayette County, Ark., was opened in June, 1940, with production obtained from the oolitic Smackover lime at a depth of approximately 9,300 ft. The structure is an anticline 8 miles long by 1 to 2 miles wide, and is one of many productive Smackover structures in Southern Arkansas. Of predominant importance is the condensate-bearing gas cap portion of the reservoir, which covers approximately 4,000 acres, attains a maximum thickness of some 200 ft, and has an average thickness of 90 ft. Development of the cap was accomplished with 21 wells drilled on 160 acre spacing. An isopach map of the cap is shown in Fig. 1. In addition, an oil rim is present along most of the periphery of the pool. Production practice includes field separation of black oil, and a high pressure gathering system which carries total well stream from gas cap wells to a plant where condensate is separated and the gas is processed for recovery of natural gasoline, butane, and propane. Since the gas contains appreciable hydrogen sulfide, it is removed by amine contact, after which free sulfur is produced by the Claus process. Core analyses from 1,767 gas cap formation samples averaged 14.2 per cent porosity and 379 md dry air permeability. Connate water was restored on seven samples of gas cap rock by air-brine capillary techniques, from which the interpreted water saturation averaged 28.17 per cent. During the early life of the field, it was believed the recovery mechanism, based on several of the other regional Smackover reservoirs, might be a natural water drive. However, subsequent production and pressure history revealed that the gas cap would not be produced by water drive, but would behave as a closed reservoir. In this respect, during the nine-year period of natural depletion from initial production to Aug., 1949, the cap production of 84.3 billion

Jan 1, 1958

By L. Hartsell Cash

INTRODUCTION Created in 1944 to help rebuild those economies, principally in Europe, which were seriously damaged or destroyed during the Second World War, the World Bank--or to use its correct name, the International Bank for Reconstruction and Development-began its operational phase by making a loan to the Government of France to accomplish two tasks: (i) to import coal for space heating purposes; and (ii) to buy new machinery and equipment to help rehabilitate its coal mines. Once the thrust of reconstruction in postwar Europe was largely accomplished, the World Bank Group (for today the World Bank has three separate lending windows) turned to mobilizing funds to improve living standards in developing countries, which remains its primary goal today. Over this period of time, the World Bank Group has continued to assist the world mining industry in various ways and, since 1955 the World Bank Group has financed mining or mineral processing projects with loans/credits totalling $1.5 billion. The World Bank Group consists of two institutions--the World Bank itself and the International Finance Corporation (IFC), which was founded as a separate institution in 1956 and three separate lending windows--the World Bank, the International Development Association (IDA), and IFC. The World Bank loans are provided at commercially-related interest rates but have grace periods usually of up to 3 to 5 years and repayment periods ranging from around 15 to 20 years. Since the World Bank raises its operating funds on the international capital markets in varying currencies and in varying interest rates, it relends a basket of currencies at floating interest rates which are fixed every six months to reflect the Bank's own borrowing cost. At the present time, the interest rate is just below 10% per year and in addition, a one-time front-end fee of 1/4 of 1% is charged. Also, a commitment fee of 3/4% per year is charged on the undisbursed amount of the loan itself. For loans to industrial and mining projects, it is normal to charge an additional guarantee fee of 1 to 1.5% in addition to the annual interest rate. This guarantee fee is payable to the government of the country in which the project is carried out since, by its charter, the World Bank is required to have the guarantee of the host government for each loan made in a specific country. By far the greatest source of lending funds within the World Bank Group is that of the World Bank itself and for the fiscal year ending June 30, 1984, the World Bank approved loans totalling $12 billion. The second lending window within the World Bank Group is IDA which performs the same functions as the Bank itself and has the same staff. Nevertheless, its loans (called credits) are made on much softer terms and are made to the poorest nations only. IDA funds are subscribed by the wealthier countries, usually as grants, and these are relent as credits to those countries with the lowest per capita income. IDA credits are made for 50 year periods, including 10 years of grace, to the government itself. The credits are interest free, but there is a service charge of 3/4% per year on the amount withdrawn and outstanding to defray the administrative costs of IDA. Credits approved during fiscal 1984 totalled $3.5 billion. The third lending window is IFC. While IFC is a separate corporation and operates quite separately from the World Bank and has its own staff and regulations, it works very closely with the World Bank on its overall approach to the mining sector and to a particular country. IFC's mission is essentially to supply venture capital and to stimulate development of the local private sector in capital markets as well as to promote the international flow of private capital to developing countries. Unlike the World Bank and IDA, the IFC does not lend directly to governments

Jan 1, 1985

Jan 1, 1926

By W. W. Stephen, J. P. Walsted, W. J. Kroll

FOR the production of carbides, various furnace types are available, especially those using arc, resistance, and high-frequency heating. Selection of a specific means of heating depends primarily on the material to be treated and the physical properties of the carbide produced. In the present case, zirconium carbide had to be prepared on an industrial scale as a raw material for the production of anhydrous zirconium chloride. Considering that a rather expensive pure oxide was to be used, the arc-furnace treatment recommended for zircon sands in a previous publication' was ruled out because of the considerable volatilization and dust losses caused by the blast of the arc. For this reason, either high-frequency or resistance heating seemed to offer more promise. Since there was not enough capacity of the former available, resistance heating was chosen. It was first thought that the Acheson silicon carbide furnace would be suitable for the present purpose, but the voltage in such a furnace, in which the current passes through the batch, varies from 220 to 75 v from the start to the end of a run. This variation is so great that a special tap transformer would have been required. Trouble was also expected by local melting of the carbide. Pure zirconium carbide melts at about 3527°C, but the melting point is brought down to 2427°C, according to Agte,2 when an excess of 6 pct C is present in the carbide. This we found confirmed by experiments in a high-frequency furnace. Excess carbon is needed in the batch to obtain a complete reduction. Fusion of the charge would cause great difficulties in an Acheson-type furnace because of the good electrical conductivity of the carbide as compared with that of the loose batch. Also, fused carbide is much more difficult to chlorinate than the spongy product that can be made in the radiation furnace described below. It was apparent that, to obtain a good-qual-ity zirconium carbide, the heat input would have to be well-controlled. The hairpin-resistor principle seemed to offer possibilities in this regard, and a furnace of this type was therefore developed. The advantages of the hairpin-resistor radiation principle have been discussed in previous publications, and a split-tube graphite-resistor furnace," now increasingly used in various laboratories, as well as a centrifugal quartz melting furnace4 of this type, has demonstrated the usefulness of this heating method. The hairpin-heater element has the following definite advantages over a straight resistor of the type used, for instance, by Georges:5 Its resistance is four times greater; it can expand freely; it is sturdier because of the larger diameter, and it has a larger radiation surface; there are no hot contacts that might wear out or overheat; only one clamp is used which permits assembling all electrical leads at one side of the furnace, making the other sides easily accessible to the operator. The shorter element and its larger diameter permit greater concentration of heat. The furnace developed is shown in fig. 1. The box (I), made of 2 1/2-in. graphite plates, has inside dimensions of 23x17x16 in. It contains the briquet-ted batch (2). The box is embedded in lampblack (3) up to the cover plate. The cover plate contains an opening for the gas escape (4) and for the observation hole (5), which permits measuring the temperature with an optical pyrometer. The cover plate is embedded in charcoal (6). The lampblack is contained in the insulating brick lining (7), held in the 1/4-in. sheet steel box (8). The graphite box is set on two rows of triangular graphite bars (9). The hairpin-heater element (10), the dimensions of which are given below the main drawing, extends horizontally in the graphite chamber and radiates freely on the batch. A graphite tube (11) keeps the lampblack from falling into the slot. The split electrode, which in reality is turned 90" against the drawing, is so arranged that the slot is vertical. The water-cooled packing gland (12) is insulated by an airgap from the heater element. A thin pipe (13)

Jan 1, 1951

By Dick Whittington, W. R. Taylor

GENERAL In mid-1974, a representative of ARCO Petroleum Company walked into our Austin offices and asked for a permit for ARCO's first Clay West Mine site. This was the first in situ uranium mining permit issued in the United States. That initial permit, issued in January 1975, was for three acres. The four years since have been characterized by growth and change. Today there are 16 permits approved for approximately 1,540 production acres issued to five companies at eight sites in four counties. There are approximately seven additional permit applications being processed or on the verge of being submitted for an estimated 2,000 additional acres of production. As a rough gauge of the financial scope of this activity, at the typical 40 production wells per acre and an estimated $2,000/well, operators hale installed or committed $122 million for production wells. This does not account for the exploration and development wells installed to delineate the ore or the cost of processing facilities for extracting the uranium. HISTORY OF URANIUM MINING IN TEXAS Information I have concerning early in situ uranium mining activities is "sketchy" but the apparent first on-site test of in situ uranium mining was conducted between 1967 and 1971 at the Dueterstat site, north of Yorktown in Gonzales County, by City Service. Others ran tests at the Bruni site in Webb County and the Burns and Clay West sites in Live Oak County in the mid-70's. During this period, Texas Water Quality Board personnel in the central and district offices maintained a general surveillance of these various test activities. Regulation of in situ uranium mining was formalized with the issuance of a permit in January 1975 with the advent of ARCO's initial production scale (3 acre) effort in the Clay West area at the Moser mine site. Since 1975, the accelerating rate of mining and exploration activity is noticeable. There were 16 exploratory rigs operating early in 1977. This year, the rig count is averaging 46--a 287% increase. HISTORY OF LEGISLATION Paralleling this mining activity was state and federal legislation which subjected in situ mining to environmental regulation. The following is a brief chronology of the legislation that is directly or indirectly related to uranium mining. As most of you know, disposal wells are an integral part of most in situ uranium mines operating in Texas. They are used both during production and during aquifer restoration following production. The wells are regulated by the Texas Injection Well Act, enacted in 1961 by the Texas Legislature. In 1967, the Water Quality Act established the Texas Water Quality Board, and provided for the regulation of water quality by the so-called permit system. In 1969, the Solid Waste Act was enacted by the Texas Legislature. The legislation provides for control of wastes from manufacturing, mining, and agriculture. This Act regulated uranium surface mining activities until 1975 when the Texas Surface and Mining Reclamation Act placed responsibility with the Railroad Commission for uranium open-pit mining and surface mining of coal and lignite. In 1972, the Federal Water Pollution Control Act (Public Law 92-500) was passed. This legislation forms the legal base for the NPDES (National Pollutant Discharge Elimination System) and the subsequent point source effluent guidelines and standards. The November 6, 1975 issue of the Federal Register published interim final rules for Best Practical Treatment levels for effluent discharges from ore mining and dressing operations. Litigation was immediately initiated by eleven companies against these proposed rules, and they are currently being reconsidered for reissuance in 1979. In 1974, the Federal Safe Drinking Water Act (Public Law 93-523) was enacted. A part of this legislation is the Underground Injection Congrol Program. The regulations implementing this program have undergone various public hearings and it is expected that they will be published in the Federal Register before the end of 1978. In 1975, the Texas Surface Mining and Reclamation Act (Senate Bill 55), providing for the Railroad Commission's authority to require reclamation of surface mines, was passed. In 1977, an amendment to Senate Bill 55 was introduced that proposed to place regulation of in situ mining of coal, lignite, and

Jan 1, 1979

By W. C. Lilliendahl, G. Meister

Uranium metal with a purity of about 99.9 pct was produced on a large scale by fused salt electrolysis with a material efficiency of about 90 pct. The material efficiency depends mainly on bath composition, electrolysis temperature, electrode smothering, and elutriation during washing of the powder. RESEARCH and development work on fused salt electrolysis carried on by the Westinghouse Lamp Div. Bloomfield, N. J., was done under the Manhattan District Corps of Engineers and later under the Atomic Energy Commission for the commercialization of uranium production for the first atomic pile at the University of Chicago in 1942. From the conception of the atomic bomb project it was recognized that metals with impurity levels having little metallurgical significance would be required. Permissible impurity levels were based on neutron absorption. Of particular significance was boron, which could not be present in amounts exceeding 1 ppm. The electrolytic method as developed in 1930 by Driggs and Lilliendahl,1,2 and later improved, yielded uranium of very low boron and other deleterious impurity content. No other method was capable at that time of producing uranium metal of the required purity.' The low boron content of uranium produced by the electrolytic process resulted from the availability of the reactants which were low in boron content, and from the inherent elimination of boron in the fused salt bath. Since the heart of any electrolytic process is the electrolysis cell, this paper will deal with the development of the original bath composition for the efficient production of uranium from a batch process to one of continuous operation. Emphasis also will be placed on other factors which will affect the material efficiency of the process. With the laboratory cell the material efficiency of uranium powder recovery in the early electrolysis was relatively low, about 35 pct based on the ratio of uranium recovered to uranium added. This early process also had other defects. The electro- lytic bath could not be used continuously. After three runs from a freshly charged crucible, the deposit showed a tendency to slip off the electrode as it was raised from the bath. This condition necessitated pouring the charge every fourth run and preparing a new bath. It was assumed at that time that this condition was caused by the increasing fluoride concentration with each addition of uranium salt, which adected the mobility of the uranium ions. Experimental The electrolysis cells differed in size only. They were of the floating cathode type. The laboratory cells were 21/2 in. ID and 6 in. deep and operated at 30 amp and 5 volts. Production was about 150 g metal powder per 8 hr. The plant cells (5 units) were 9 in. ID x 21 in. deep and operated at 1800 amp at 12 volts. The total production unit was designed to produce 250 lb of uranium powder per 8 hr day. Because of the tendency of uranium fines toward spontaneous combustion, material efficiencies were based only on the recovery of useful coarser metal which could be safely handled. The reported efficiencies are of particular significance only as related to the same group of experimental procedures. At the start of the project no changes were contemplated until previous data could be definitely confirmed. Therefore, the first experiments were with the 50 pct CaCl2-50 pct NaCl mixture. The material efficiency of uranium deposition as a function of the number of electrolyses is shown in Table I. In Table I, the decrease in efficiency at 800°C with number of runs is apparent and confirmed the earlier data. Operating at 900°C enabled the number of runs to be doubled, but before pouring the charge the efficiency of recovery became poor. This test indicated that the improved efficiency might have been caused by an increase in the fluidity of the bath.

Jan 1, 1958

By C. O. Dale, W. J. Rundle

THE upper Mississippi Valley zinc-lead area was the first major lead producing section in the United States. The lead ore, found near the surface in crevices, was relatively pure galena that could be smelted directly into lead, at first in log hearth furnaces and later in more efficient blast type furnaces. French Canadian fur traders encouraged the Indians to mine the lead ore and showed them how to smelt it into lead that had a high value for bullets.1 Nicholas Perrot found lead ore on the Mississippi River bluffs near the junction of Wisconsin and Illinois and in 1690 established a trading post on the Wisconsin side of the river opposite the present site of Dubuque, Iowa.2 Shortly after 1720 discovery of Mine La Mott in Missouri diverted considerable attention from the Upper Mississippi area. Mining continued on a desultory basis with operations concentrated in the Galena, Illinois-Dubuque, area. In 1740 at least 20 miners were at work in the Fever River area around Galena and are reported to have shipped 2500 70-lb pigs of lead to Kaskaskia in 1741.3 Julien Dubuque established a mining and smelting operation in 1790 near the city that bears his name 'and was granted sole right to exploit the mining operations on the lands of the Sauk and the Fox Indians. He is reported to have produced 30,000 70-lb pigs of lead in 1805. Following the death of Dubuque in 1810 the Indians refused to let the white miners enter their lands, and little was done on the Iowa side of the river until the Indians were removed by treaty with the United States government in 1832.4 Early mining was entirely for lead but as the crevices were followed down, increasing percentages of zinc sulphide and zinc carbonate were encountered and at first discarded. Later a market became available for the zinc ores, and hand jigging devices were made to separate the lead," the zinc, and the rock or waste materials. The first record of zinc production from -the area is for 1860. Production of zinc passed that of lead before 1900, reached a peak of 64,000 short tons' in 1917, fell off rapidly and continually to about 2000 short tons in 1938, and since 1940 has ranged from 11,000 to 19,000 short tons. Lead has been of considerably less importance since 1900, and at present only about 10 pct as much lead as zinc is produced. Practically all of the zinc ore has come from orebodies that are rather flat and wide with, considerable length as compared to width. Most of the early lead came from the crevice type deposit, but present production is from the predominately flat zinc orebodies. The Graham-Snyder orebody, scene of Eagle Picher operations, is practically all zinc with little or no lead being recovered. Marcasite, present in varying amounts, makes production of finished concentrates by gravity separation impractical. Satisfactory lead and zinc concentrates have been produced since flotation was introduced in the area in 1927. An acid recovery plant was operated for about 20 years after World War I, but it has been dismantled, and no recovery of the iron sulphides in the ores of the district is being made at the present time. In June 1950 there were three companies operating mines and mills, Tri-State Zinc Co., Calumet & Hecla Consolidated Copper Co., and Eagle Picher Mining and Smelting Co. The Vinegar Hill Zinc Co. had completed a shaft at a new orebody and had started to develop the mine which will supply the Cuba City mill. The Cuba Mining Co. was holding the Andrews Mine inactive. The Dodgeville Mining Co. was not operating but was exploring for additional reserves. Several small mines were selling ore to the Eagle Picher mill. A general area map is given in Fig. 1. The Eagle Picher Mining and Smelting Co. entered the area in 1946 with an active exploration campaign. Leases on a block basis were secured for the area south from the Wisconsin-Illinois line near

Jan 1, 1952

By Harlan W. Nelson, James B. Purdy

A study of data obtained during laboratory tests to determine the suitability of bituminous coals for use in residential underfeed stokers of the clinkering type has led to the following general conclusions: 1. Performance data obtained during the test furnish useful and practical information upon which to judge the performance of stoker coals. 2. Conclusions derived from the results of evaluation tests are in general agreement with use experience of the coals in the field. The method is of practical use in this regard. 3. Few direct relationships were found between data furnished by the evaluation test and determinations by standard laboratory tests. This is particularly true with regard to coke formation and clinker formation, two of the most important factors in determining the degree of satisfaction to be obtained in applications of the small underfeed stoker. It has not been the intention in this paper to prescribe this evaluation test as the best method for the evaluation of coals for use in residential stokers. That there are other test methods having similar objectives serves to point out the necessity for full-scale laboratory tests. At the present time, a standard test procedure for the evaluation of coals for use in residential stokers is not available. For the past several years a joint committee, appointed from the membership of the Residential Stoker Committee of Bitulninous Coal Research, Inc., and from the Engineer- ing and Research Committee of The Stoker Manufacturers Association, has been working to develop a standard procedure for testing and evaluating bituminous stoker coals. This procedure has been completed to the extent that it has been drawn up in tentative form. It is now planned to install the equipment in several laboratories and to run check tests, using portions of identical lots of coal, to determine the degree of reproducibility offered by the method. Completion of this standard test procedure should greatly facilitate the evaluation of coals for use in residential stokers. Acknowledgments The cooperation of coal operators sponsoring the coal evaluation tests, in granting permission to use data and results from their tests, is gratefully acknowledged. Acknowledgment is also made to Carroll F. Hardy, Chief Engineer, Appalachian Coals, Inc., for his interest and timely suggestions on the preparation of this paper. Special thanks are due to Ralph Sherman, Assistant Director, Battelle Memorial Institute, who was largely responsible for development of the evaluation procedure, for helpful suggestions and advice. References I. H. A. Sherman: The Evaluation of Coal for Use in Domestic Stokers. Univ. of Ill., Eng. Experiment Station, Circular No. 39 (1939). 2. . Q. Shotts: The Relation of Free- swelling Indexes to Other Characteristics of Some Alabama Domestic Stoker Coals. TP 2314, Coal Tech., (Feb. 1948); Trans. AIME (1948) 177, 502. 3. . J. Helfinstine and C. C. Boley: Correlation of Domestic Stoker Combustion with Laboratory Tests and Types of Fuels 11. Combustion Tests and Preparation Studies of Representative Illinois Coals. Ill. State Geol. Survey, Re1. of Zntlestigations No. 120 (19467 ) p. 35. DISCUSSION E. R. Kaiser*—AS a former fuel engineer assigned to residential stokers at Battelle, the writer has read with considerable interest the paper by Messrs. I'urdy and Nelson. It is gratifying to note that earlier test techniques have been developed and that criteria found important in the years 1935 to 1938 are still important in judging the performance of stoker coals for residential heating. The authors have plotted a number of the primary coal data singly against performance data of the stoker in an effort to establish relationships. Unfortunately, wide scattering of points usually resulted, which did not illustrate what experience generally indicates to be the case. For example, Fig 3 indicates almost no trend in the percentage of released ash converted to clinker with change in ash-softening temperature. Other factors, such as fuel bed temperatures and zones of heat release must have influenced the results. In the present state of our knowledge, we cannot explain all of the reasons why suitable stoker coals perform satisfactorily, nor why one satisfactory coal may be better than another. It would therefore

Jan 1, 1950

By Edgar F. Cruft

INTRODUCTION It is sometimes said that "mines are made, and not found." I rather doubt that the exploration geologist would be overly sympathetic to that statement, and, of course, like most one-liners it is only partly true. Access to different financial markets are important at the mineral prospect stage. The modern mine financier has a much more complex, and interesting, job than the financiers of an earlier era, for example, the Canadian financiers of the 40's and 50's who had one simple set of options; i.e. float a company, promote it, and sell an equity stock issue, and then promote it some more. QUALITIES OF A FINANCIER Because technical people are seldom taught financing in their basic training, and because they are usually not involved in it until at quite a senior level in their careers, the whole field often acquires a certain mystique. The engineering professions have too often believed financing is the province of the accountant or financial executive and just as we in the technical world are often too quick to bristle if the latter try to tread on our domain, the opposite can just as easily be true. Unfortunately, this is another example of a compartmentalized individual, and that is one thing the successful financier cannot be. However, to be a successful financier one does not need extensive training or experience in accounting or finance. In fact it can sometimes be a disadvantage to get too buried in working only from the standpoint of discounted cash-flow analyses, ROI's, etc. It must be stressed, however, that one had better know how these analyses are made, and be knowledgeable in understanding a balance sheet, and have a good understanding of financial terminology. The difference between a simple project-type debt financing with a commercial bank and a more inventive and creative financial package comes from an intuition and an experience relating to risk-reward factors. The most important element is "common-sense", based on knowledge and experience. The goal is structure a financial package that fits the project, and in so doing it is important to recognize that it must fit within the limitations of the group supplying the money. I find insensitivity to recognize these constraints the most common mistake made in the field. Put yourself in the other person's place and understand his sources of funds and financing limitations. The engineer has an advantage in financing, as he or she has (or should have) a better idea than anyone of the value of the product, be it the mine, prospect, or company i.e. the intangible or potential worth which cannot be put on a pro-forma. He also knows, or should know, the risks involved. Two projects might look the same on paper, but a good financier must have a sense of when to take whatever deal he can get, and when to hold out based on his evaluation of future developments. It is essential to have a good sense of commodity values and trends, trends affecting the general economy (money supply, interest rates, effects of energy costs, etc.), and political considerations. He must also have a good understanding of the science and art of taxation as deals can often be financed using the government as a silent and unwitting partner by proper use of the tax laws. WHEN TO SEEK FINANCE The first critical decision to make in financing a mineral prospect is "when". At the exploration level, when it is only a dream in the geologist's eye, the alternatives are more limited than when it is a fully-engineered project. The "when" decision depends on how much in internal funds the company has to play with, and how desirable it is to invite financial participation to spread the risk. Assuming that decision is not taken out of lack of money, no one can categorically say when to do it. There is

Jan 1, 1985

By J. C. Purcupile, R. L. Morris

Present methods of roof support require that first a hole must be drilled, and then a toggle belt or grouted resin bolt be set. Automating this system is very difficult. Therefore, we decided to develop a system which would insert pins into the roof in one step. We think that this type of system can be automated much easier. It would then speed up the roof bolting operation and eliminate the need for a man to work under unsupported roof, making roof bolting a much safer job. There are two ways that a pin can be inserted in a mine roof without drilling a hole. It can either be pushed in, using a very high, constant axial force; or it can be hammered in like a nail. The former method involves very high compressive stresses in the pin, and requires complicated machinery to prevent buckling. Since hammering the pin does not require high axial forces buckling is not as likely. Also, experiments have shown that there are no problems associated with getting the pin to go in straight. We chose to develop the second method. While investigating methods for hammering a pin into a mine roof, we learned that piles were being driven 10 times faster than by conventional methods with a method called "orboresonance." We decided to turn the pile driver upside down, and drive pins up into the mine roof. Sonic Pin Setting Machine The machine consists of a steel bar supported at the nodal points of its first mode of transverse vibration (Fig. 1). A mechanical oscillator, driven by a hydraulic motor, is attached to one end of the bar. This provides the forcing function for the vibrations in the bar. The hydraulic power is supplied by a portable unit. When the forcing function is near the natural frequency of the bar, large amplitudes of vibration occur and require little power input. An anvil is attached to the bar at a point of maximum deflection, providing a means for striking the pin. Since the bar is being driven near its natural frequency, it takes little energy to accelerate the bar back and forth between each hit. This means that most of the power being put into the bar is going into driving the pin. This is unlike conventional pile drivers which use most of their power to accelerate the hammer back and forth between hits. The resonant frequency of the bar we used is about 250 Hz, which is in the audible range, hence the term "sonic pin setting machine." The system benefits are: (1) elimination of the two-step drilling and pin-setting roof bolt operation, (2) increased speed, (3) more intimate contact between the formation and bolts, (4) less expensive roof bolts, (5) higher integrity, (6) potential for automatic operation. Modifications During the months from Oct. to Dec. 12, 1974, under U.S. Bureau of Mines grant No. 00144104, "Projects on Coal Extraction," six members of the senior class at Carnegie Mellon University designed and built the experimental machine. They drove three pins into the Safety Research coal mine at Bruceton, Pa., and determined that the project was worth continuing. In January 1975 we began making modifications and repairs in preparation for a more extensive program of testing at Bruceton. The major items were: 1) Design and build a collapsible pin guide to keep the pin parallel with the line of travel of the lift table. 2) Move the anvil to the center of the bar. 3) Refinish the nodal holes and install new node pins and bushings. 4) Realign the bar in its frame. 5) Install a relief valve on the lift unit to control the upward force. The upward force that we exert on the pin is relatively small, so there is no tendency for it to buckle. This means that all we need to do is hold the pin straight during its initial penetration. This allows the bushing to travel up and down in a straight line. At the beginning of penetration, the bushing

Jan 1, 1977

By Euclid P. Worden

In 1977, an article in World Mining1 reported a total of 2726 rotary blasthole drills in service. This figure included only those machines produced by three of the manufacturers building drills of this type. The total, therefore, is much higher. Rotary drilling in the mining industry is big business to the manufacturers and suppliers involved, and a significant cost item to mine operators. The time has come to take a hard look at rotary drilling technology with an eye to reducing costs by increasing drilling efficiency. The efficiency of any rotary drilling operation is best measured in terms of the rate of penetration achieved by the bit. In blast hole drilling, there are five factors which affect the rate of penetration. They are: (1) bit selection, (2) weight on the bit, (3) rotary speed, (4) hole cleaning, and (5) formation properties. Of these factors, all but one may be controlled by the operator. Looking at any one in detail may reveal possible improvements in the system. One of these factors -- proper hole cleaning - will be discussed in this paper. In order for a bit to perform at its maximum capability, each tooth or insert should strike fresh clean rock as it falls into its drilling position. If the tooth or insert lands on previously drilled cuttings, a major portion of the energy delivered to the bit is absorbed in redrilling this broken material. A major portion of the interest, therefore, should be directed to the proper cleaning of the bottom of the hole. In an in-depth study of the cleaning of large diameter holes, Allen2 reports that horizontal air velocities of 38.10 m/s are necessary to prevent the saltation of drilled cuttings on the bottom of the hole. The exact flow pattern on the bottom of the hole, however, is not generally known. The air leaves the bit through the jet nozzles and the mouths of the cones, but where it goes from there is uncertain. This problem should be investigated by the bit manufacturers because they can best utilize the results of such an investigation to provide a more effective product. Some work has been initiated in this area and competition will probably increase its intensity. Bailing velocity is the best criteria to measure the cleaning of the hole, including the bottom, and is the factor on which efforts toward improvement must be concentrated. The first consideration is "What should the bailing velocity really be?" In drilling deep holes for oil and gas, 15.24 m/s is the generally accepted figure. In blasthole drilling, the figures of 25.40 m/s for average rock to 35.56 m/s for iron ore were first mentioned by Capp3 in 1962. The recommendations are the same to this day. A number of questions could be asked in regard to the apparent disparity between these two sets of figures. Various investigators have derived formulas which support one or another of these criteria. A thesis on the subject was written by Alexander4 who derived a formula based on research which resulted in velocities in the lower end of the ranges quoted previously. He set out to compare this figure to laboratory tests and his tests indicated that the velocities given by the derived formula appeared to be high.1 Perhaps the best reason that the 25.40 to 35.56 m/s range has been used, is that these velocities seem to work. Below the accepted figures, low bit life and slow penetration rates occur. Above these figures, increasing amounts of abrasive wear on the drill pipe and stabilizers seem to appear. There is a fallacy to this entire approach, however. The entire velocity calculation is made using nominal bit and pipe sizes and compressor deliveries with no compensation made for losses in the system. Perhaps an examination of some of the things that are not presently considered could lead to some practical improvements in the operation.

Jan 1, 1980

By H. M. FRENCH

ARC welding can be defined as a process whereby two A pieces of metal are brought together, heated to a molten state by the heat of an electric arc, and fused into one piece. There are several kinds of arc welding: the metallic arc, the carbon arc, the atomic hydrogen arc and the shielded arc methods. A short description of each, together with its major applications, will serve to distinguish between them. Metallic arc welding involves an arc drawn between a metal electrode and the material to be welded, called the work or the "parent metal." It may be further subdivided into hand and automatic welding, depending on whether the electrode is fed to the arc by hand or by motor drive. This form of arc welding can be applied to most welding operations. Exceptions to its use consist of applications where very thin metals are to be welded; where it is desired to join the work with- out adding metal; or where extreme ductility may be required:

Jan 1, 1930

By AIME AIME

THE coal classification session* on Monday morning, Feb. 17, was opened by a paper by M. R. Campbell, entitled "Natural Groups of Coal and Allied Fuels," in which he pointed out, by means of graphical presentation of selected proximate analyses of coal, that coals can be classified on the basis of their moisture content. He proposes four groups of coal, brown coal, hydrobituminous, bituminous, and anthracite, each subdivided into two or three sub-groups. In a written discussion of this G. H. Cady, of the Illinois Geological Survey, showed that there is, in general, a progressive decrease in the moisture of Illinois coals from north to south, and that it would be very difficult to draw any arbitrary line dividing the coals of the State into two groups on the basis of moisture content.

Jan 1, 1930

By C. E. LAWAL

WITH the object of adapting high-school vocational courses to the industrial needs of the community, a few high-school officials in West -Virginia working with the School of Mines of the State university decided to try an innovation this year. The purpose of this experiment was to teach coal mining in two high schools situated in mining communities. We thought that if a course in coal mining would be included in the list of optional courses offered in the high school, it might interest some of the boys, and if the course were properly taught it would undoubtedly be of inestimable value to those boys who later decided to take up mining work as their vocation. This coal-mining course was started last September in the Berwind and Gary high schools in West Virginia. The high-school officials in their conferences with' us decided that we should work up the outline of this course and they would assign the science teachers of the schools as instructors, with ,the understanding that we would help 'these instructors with this work. We consented to all this and submitted -an outline to the school officials which they are following this year.

Jan 1, 1929

By C. H. Mathewson

EXCEPTING the joint sessions on gases in metals held during the day on Tuesday, the Institute of .Metals opened its activities with a division dinner at the Commodore on Tuesday evening, with Sam Tour, retiring chairman, presiding. W. M. Corse, secretary-treasurer, outlined the financial status of the division and stated the investment fund is becoming large enough so that in the near future it will be possible to pay all expenses of a foreign lecturer once in two years and not rely on an extended speaking tour to cover expenses. W. B. Price reported on his attendance at the Zurich, Switzerland, meeting of the International Society of Testing Materials and gave a graphic account of his visit to the Grand Salon, his meeting with Mussolini, and his audience with the Pope. Buffalo was announced as the place of the fall meeting, to be held during the week of Oct. 3.

Jan 1, 1932

By A. P. Svenningsen

IN the early stages of design it was not considered necessary that separate crushing plants be built for the new sulphide concentrator and smelter until sometime in the future. The plan was to use the existing crushing facilities for both oxide and sulphide ore. A few additions were contemplated for the existing plants, such as increased bin capacity, and possibly two new secondary crushing units. The more the problem was studied and discussed with the plant operators, the more it became evident that it was complex. It involved the classification of different kinds of ore from the open pit mine -sulphide, oxide and mixed-and how best to separate them so that each kind of ore was given the proper processing and treatment. It also involved the problem of keeping the different ores from being contaminated in bins, hoppers and chutes. Added to these, transportation became complicated and would involve additional handling and loading of ore from crushing plants to conveyors, to bins, and finally to railroad cars which were to be hauled to the concentrator and dumped into the fine ore bin. General In the early part of 1951 it was decided that the concentrator be constructed with ten grinding units instead of seven as originally authorized. The smelter was to be increased proportionally and naturally also the overall tonnages of ore to be handled by the new sulphide plant. Due to this increase in plant capacity and the larger tonnages involved, the difficulties which would arise by using the existing crushing plants were increased to a point where it became evident that the building of new crushing plants for sulphide ore exclusively was technically, as well as economically, advantageous. Authorization was, therefore, given by the company to construct new crushing plants to handle 30,000 tons of ore per day, and capable of reducing the run-of-open-pit ore to the proper size feed for the 10x14-ft rod mills in the concentrator. The ore, mined in the open pit, sometimes comes in pieces as large as 6 to 7 ft diam. The rod mills may call for ore crushed to 3/4 in. The large .size of ore delivered from the open pit determined that a 60-in. gyratory crusher be used as primary breaker. Such a crusher will have a capacity considerably in excess of 30,000 tons per day. The crusher will be a single discharge unit driven by a 500-hp electric motor through a tear coupling and a floating shaft. This type of drive has proven successful at a number of other crusher installations which our company has operating in the United States, Mexico and South America. The tear coupling will protect both the crusher and motor against damage in case of overload. No new features are incorporated in the design of the crusher itself, except that the, discharge chute is made the full width of the crusher with parallel sides instead of the usual converging sides. This change in detail should eliminate, a feature which has been a bottleneck in some of the operating plants and has caused loss of production due to ore hanging up and blocking the chute. The secondary crushing plants will have three 7-ft standard Symons cone crushers and six 7-ft short head Symons crushers. Between the primary and secondary crushing plants a coarse ore bin will be constructed with a nominal draw-off capacity of 30,000 tons of ore. The standard Symons and the short head Symons will be in separate buildings. All the crushing plants and the coarse ore bin are interconnected with conveyor belts for transporting the ore to the crushers at the tonnage rate desired. The final product of the new crushing plants is produced by the short head crushers. It will be delivered onto a conveyor belt leading to the top of the fines ore bin in the concentrator. A separate conveyor belt running the full length of the fines ore bin and provided with a movable tripper of rugged design will discharge the sulphide ore into the bin. The concentrator bin is planned and designed so that the installation of this additional conveyor will not interfere with the operation of the two railroad tracks on which crushed ore is brought from the existing oxide plant. Thus when completed the bin can be filled simultaneously by ore from the new crushing plant and by ore from the existing leaching plant.

Jan 1, 1952

A. G. Cockbain—The paper by Burlingame, Bitsianes and Joseph is of great interest in extending the work done on high grade sinters, particularly that of Hessle, and the development and application to them of the technique of McBriar, Johnson, Andrews and Davies on ironstone sinters. In this laboratory the work of McBriar et al. has also been continued and extended to cover high grade sinters, and a sectioning technique similar to that used by McBriar et al. was attempted on sinter cakes made in the laboratory sinter unit, using magnetite concentrates (containing 64 pct Fe). In these experiments no attempt was made to flush out the products of combustion with nitrogen before cooling. It was considered that free air penetration would occur on only a limited scale with the size of sinter cake made (14 in. sq x 12 in. deep). Chemical analyses of the zones showed generally similar features of those described by Burlingame et al. and especially the FeO rich region at and just behind the flame front, i.e. zones of ignition and combustion. This seems to indicate that the nitrogen atmosphere does not materially affect the states of oxidation in the sinter cake or at least that special care is not required unless the sinter cake is small. Burlingame et al. consider that FeO present has some significant part to play in the mechanism of sintering. This view does not find favor with the author. The reduction of iron oxides in the presence of red hot coke is a well known phenomenon, whether conducted in an atmosphere of nitrogen or in a crucible in air, and in view of the presence of some carbon in the hot sinter, especially just at the ignition zone, cessation of the progress of the flame front will in no way affect the reduction of iron oxides near hot coke. Even in a nitrogen atmosphere some CO and CO, will be generated by reduction and by continual oxidation and reduction of CO as the transfer agent, the oxidation state of the iron oxides can be lowered quite rupidly so long as free carbon exists with enough heat. Knowing the composition of the gas at the flame front (obtainable by probes), it would be possible to calculate the static oxidation state of Fe2O3/Fe3O2 in equilibrium with it and hence obtain a check on the chemical analyses to see if in fact direct reduction of the Fe2O3/Fe2O1 to FeO has taken place. Have the authors attempted this? It appears to this writer that what is required is some means of reducing rapidly the heat content of the ignition zone and immediately behind, and at the same time insuring no oxidation by the air. In ironstone sinters the difficulty of oxidation state of the iron did not arise on account of the very large slag bulk. However, in high grade sinters knowledge of this, and also the mechanism whereby high oxidation states can be obtained in the final sinter, is of great interest. R. D. Burlingame (author's reply)—The question has been raised as to whether the high FeO content found in high-fuel sinters is due to actual reduction at the advancing flame front or due to unavoidable direct reduction during the quenching period. For such direct reduction to have taken place in the freshly-formed sinter, a considerable amount of solid carbon would have had to escape combustion and be available throughout the hot sinter zone during the quenching period. A simple stoichiometric calculation with the limited data available indicates that a zone of freshly-formed sinter over 2 in. wide must have averaged roughly 2 pct C to accomplish the amount of reduction found. Furthermore, the presence of this amount of carbon would indicate that the fuel in the charge had not burned over a narrow front but over a zone at least 2 in. thick. In contrast to such a condition, the data of the present investigation indicate that the combustion of fuel is confined mainly to a narrow front in which high temperatures and reducing conditions favor. the formation of excess ferrous iron.

Jan 1, 1959

By E. J. Roberts

Prior to 1916, thickening was an art, and any accurate decision as to what size of machine to install to handle a given tonnage of a specific ore must have been one of those intuitive conclusions, based on both intimate and extensive acquaintance with thick-ners and ore pulps. Then in 1916 "knowledge of acquaintance," became "knowledge about" with the publication of the Coe and Clevenger paper.' The unit operation of thickening had graduated to the status of an engineering science. The fundamental similitude relationships for the two major phases of the operation were defined so clearly that batch tests on models as small as liter cylinders could serve to specify protypes as large as 325 ft in diameter. It is quite apparent from reading the literature that Coe and Clevenger's contribution is not generally appreciated. In so far as the basic engineering relationships are concerned, the only real advance which has occurred in the 30 odd years which have elapsed since the Coe and Clevenger paper is the recognition of the effect of the rakes on the thickening process. Bull and Darby2 noted this in 1926, and the extensive use of the "gluten type" thickener, in which the effect is magni-fied, bears witness to its importance. Comings3 further verified this effect of the rakes. As a matter of fact, a number of papers show an apparent regression from the Coe paper in that the area determinations are made on the basis of a single test from One concentration of solids. Coe and Clevenger amply demonstrated that this is unsafe, since the controlling zone may be one other than that of the feed dilution. Comings3 neatly demonstrated this without apparently realizing it. Of course there have been significant advances in the application of the operation to industry. Open tray thickeners were introduced to save area; balanced tray thickeners, washing thickeners, and multifeed clarifiers were developed with all of their special hydraulic and mechanical problems. Combinations of all kinds have been introduced, such as combination agitators and thickeners, combination flocculators and clarifiers, combination thickeners and filters. With the establishment of the operation on a firm engineering foundation, installation was facilitated and expansion proceeded. There are still problems, of course, functional as well as mechanical. Sometimes the moisture in the underflow obtained in practice is not as low as is expected on the basis of the test data. Sometimes the underflow is so "thick " that its discharge and subsequent handling requires special attention. Island formation plagues some operators. The use of the thickener as a surge basin and blending tank in the cement industry poses unusual problems. Design of rakes and the drive mechanism must be continually im-proved. Corrosion problems must he overcome. Power requirements for raking the settled solids occasionally is the controlling factor as it was in the case of the all American Canal desilting installation. Other similitude relationships and design problems come into the picture when we enter the field of clarification or nonline settlement. We have an energy dissipation problem in introducing the feed and any models must satisfy the Froude model relationships. Autoflocculation requires detention which involves the same similitude laws that we encounter in the compression zone. Approach to an Exact Science The next step beyond having control of the similitude relationships is to understand the why of these relationships right back up the line to first principles. The ultimate might be that, if given the mineralogical composition of the solids and their size distribution together with an analysis of the suspending liquid, we could calculate the entire thickening behavior of the system. Then we could say we had reduced the operation to an exact science. True it might be more trouble getting this basic analytical data than to make our empirical determinations for area and volume, and we would need an ENIAC to calculate the results, but that does not detract from the desirability of such understanding. Considerable work has been done by the chemical engineers with this end in view. Comings,3 Egolf,4 Work,5 Kam-mermeyer,6 Steinour,7 and others have studied the problem. The writer has no final answer to the thickening story but would like to propose a picture of the mechanics of the two phases of thickening which has been found useful in understanding the subject and which leads to some convenient relationship in treating the compression step and arriving at the compression depth.

Jan 1, 1950

By A. Styka, G. Fischer, S. Tour

Described herein are the results obtained during research work involving coating titanium alloys with molybdenum by vapor-deposition methods. Results show that the method can be used successfully to deposit hard adherent wear-resistant coating of methodmetallic molybdenum on titanium or titanium alloys without changing the microstructure of the titanium base. PRODUCTION and use of titanium and its alloys have increased tremendously in the past few years. The physical, mechanical, and chemical properties of this engineering metal have caused considerable enthusiasm among metallurgists and engineers. However, as with all materials, there are some drawbacks. For example, titanium is susceptible to seizing and galling on wearing surfaces. In order to produce a good wear-resistant surface, many investigations have been conducted evaluating oxidizing, carburizing, nitriding, carbonitriding, sili-conizing, and chromizing of titanium. All of these processes require high temperatures for rather extensive periods of time. It has been possible to produce hard surfaces on titanium and its alloys by a number of these processes at the expense of a deterioration of the physical properties of the base material. A practical solution to the problem of providing titanium and titanium alloy parts with a satisfactory wear-resistant nongalling surface must be one that does not involve excessive temperatures for long periods of time. Sam Tour & Co. Inc. has completed a research and development contract for the United States Army Ordnance Corps on vapor deposition of molybdenum on titanium and titanium alloys. On the basis of results obtained from the research program, titanium alloys can be coated successfully with molybdenum to provide a hard wear-resistant surface without harm to their base mechanical properties. The remainder of this article is a description of the techniques used to apply the coating and the results obtained from wear tests on molybdenum-coated titanium. Theory Basically, the technique used was the application of molybdenum by a vapor-deposition method, thermal decomposition of molybdenum hexacarbonyl [Mo(CO)] with hydrogen as the carrier gas. The selection of this method was based chiefly on the following considerations: 1—low plating temperature which would minimize excessive grain growth, 2— low decomposition temperature of the carbonyl, 3— possibilities of controlling the hardness of the plate by adjusting the carbon content using the plating temperature and pressure as the primary variables, 4—use of high vacuum, thereby avoiding unnecessary oxidation and other complex reactions with the atmosphere. Free energy data1 show the strong tendency for titanium to combine with O2 N2 or carbon from normal temperatures to temperatures above its melting point. To maintain the titanium in a film free condition, the use of as high a vacuum as possible is indicated. The literature' indicates that the reaction product of hydrogen with titanium is unstable in vacuum at around 400°C. 5—Although it is indicated from the thermodynamic standpoint that there is little possibility of removing carbon from either titanium or molybdenum, the work of Lander and Germer -ndicates that the use of a suitable H,/CO ratio is somewhat effective in minimizing carbon deposition. 6—Availability of molybdenum carbonyl. In the simplest form, the conditions of equilibrium3 in chemical reactions involving decomposition of carbonyl are as follows: Mo (CO) ? Mo + 6CO 2CO * C + CO,. The plating rate is proportional to the rate of evolution of CO from the decomposed carbonyl, i.e., it is proportional to the pressure of the gaseous decomposition products. Carbon released from CO gas is the significant constituent for the variability of the physical properties of the product. High carbon deposition is favored by increasing pressure. Limitations are imposed in the selection of plating temperature and pressure. Excessive temperature re-

Jan 1, 1956