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By W. E. Gaby

INTRODUCTION SINCE the time of their discovery, the genesis of the ores at Mount Morgan, and the nature of the changes which have affected the surrounding rocks, have been the subject of investigation and speculation by geologists and mining engineers. Developments at this mine, for a long period the greatest gold producer of the world, show that with depth the orebody grades into copper, of which metal it now furnishes a large output, exceeding in value the gold. In earlier times, the purity of the gold and the first extremely heterogeneous character of the ore made it an interesting problem. Now, the probable depth of the copper enrichment, genesis, and true relations of the neighboring rocks furnish equally profitable material for investigation, and the present somewhat detailed description of these ores and rocks, from microscopic study, may prove of interest. The mine occupies a highly silicified portion of a belt of quartz-porphyry, which is believed to be the oldest rock of the region. This belt of quartz-porphyry and allied rocks runs north and south between two areas of a later intrusive granite, as shown on the geologic map,1 Fig. 1. Near the orebody the quartz-porphyry has been intruded by a dense basaltic mass called the "Old Basic." Cutting all three of these igneous masses are two sets of basaltic dikes, one running northwest-southeast, and the other, cross dikes, northeast-southwest. These dikes may be contemporaneous with, instead of later than, the ore. Their number has caused peculiar difficulties in extracting it, as the clay selvage of decomposed material affords no adhesion between dike and ore, causing great blocks to loosen and come down.

Jan 9, 1916

By F. H. Buchella

When Duval Sulphur & Potash Co. awarded pre- mining stripping and early mining at Esperanza to an independent contractor, it was agreed that monthly payments for excavation were to be made on a truck count. At six-month intervals, however, adjustments must be made on the basis of actual excavation or cut from the pit area. It was estimated that it would be three times more expensive to have the pit sectioned by chain and transit survey than to use photogrammetry, since it would take two crews of three men approximately two weeks to do the field work, another two weeks to plot the sections, and additional time to establish a control network. Therefore it was agreed to have the mine area mapped by photogrammetry for both the premined surface and for semi-annual check surveys necessary for intermediate settlements. A triangulation net was established with a maximum distance of 900 ft between control points. In about 30 working days a two-man survey crew, using a theodolite, set up and triangulated 30 stations and calculated their results. For ease in spotting on the photographs, control stations were marked on the ground with white-painted tires centered over the survey pins.

Jan 6, 1960

By J. A. Woolf, E. S. Leaver

THE purpose of this paper is to describe, in a general way, gold-dredging operations in California, with particular reference to unusual features, including types of deposits and recent attempts to improve the recovery of the gold. Dredging Areas The gold-bearing formations that traversed the western slope of the Sierra Nevadas for a north and south distance of some 300 miles furnished the immediate source of the gold found in most of the placer deposits of California. Erosion through a long period carried the gold, together with various forms of partly disintegrated material, to lower elevations and formed placer deposits. Through the classifying action of water in motion, the coarser gold and heavier material of various kinds were - deposited relatively near the source; consequently, in the higher mountain country, old river channels were worked feverishly during the early California gold-rush days because of their high gold content. With the working out of these known high-grade channels, and from the knowledge thus obtained of prehistoric stream beds, drift mining was started and flourished until about 1890. Even today many drift mines are operating with the objective of opening other old Tertiary river channels that have been covered by volcanic flows. Adjacent to these areas, which contained relatively high gold values in the older river channels, smaller particles of gold, gravel, and debris were deposited along the sides of the former stream beds and on the adjoining flat areas, thus forming the large placer deposits, which were worked principally by hydraulic mining. Following the course of the ancient rivers and of the present drainage system to the lower edge of the foothill country, extensive areas of alluvial

Jan 1, 1937

By Joseph Gurland

EVERAL carbide-cobalt compositions were pre-^-5 pared for the purpose of determining the transverse rupture strength of various carbide-binder systems. The binder content was held at 10 and 37 volume pct Co, so as to be representative of low and high bjnder compositions. The carbides used, WC, Tic, TaC, CbC, VC and ZrC, were selected on the basis of availability, knowledge of their properties, and small solid solubilities in the binder metal at room temperature. The methods of preparation and carbon analysis of the carbides are summarized in Table I. The carbides with cobalt added were ball milled, pressed, and sintered. vacuum sintering was used throughout, except for the WC-Cs alloys, which were sintered in hydrogen. The sintering temperatures ranged from 2500" to 2750°F for the low binder alloys and from 2300" to 2550°F for the high binder alloys. Compositions and properties of the sintered com- pacts are presented in Table 11. For the transverse rupture strength, the average and range of the five best samples of each alloy are listed. Discrepancies between the actual and theoretical densities are attributed to carbon deficiencies in some samples. The theoretical densities were calculated by assuming mixtures of carbides of stoichiometric compositions and cobalt. Representative microstructures are shown in Figs. 1 to 6. The porosity was A-2 or better' in all alloys except those with ZrC. A grain size of about 3 p was

Jan 1, 1958

By R. M. Goldhoff, H. J. Beattie

The high-temperature properties of a 1 Cr-Mo-V forging steel are described. A series of controlled heat treatments was designed to delineate the effects of austenitizing and tempering treatments, temile strength, and grain size on such properties. Studies indicate that the mechanical properties and their varlations under creep can be described by the initial metallurgical structures and their changes droPirzg exposure, particulavly the carbide reactions. Such structures are described and correlated with the mechanical properties. FOR many years the large steam turbine industry has relied on the 1 Cr-Mo-V type forging steel for critical applications. Because of its adequate heat resistance and relative economy, it is currently in use in the temperature range up to about 1050" to 1075°F. Attempts to understand the large property variations attainable in this steel involve the structural modifications due to the wide latitude in its heat treatment. The heat treatment essentially involves a two-step process which includes solution-ing of carbides in the austenite range followed by a suitable tempering treatment below the critical to adjust the level of properties. The latter step is referred to as "secondary hardening" and is basically an ordinary aging reaction involving carbides. In the commercial heat treatment of large components of such steel, homogenizing and stress-relief anneals may be included and have some importance in determining subsequent properties. Several studies of the engineering properties of this steel as a function of transformation micro-structure have been reported.1 3 However, in this steel the carbide reactions, which are a function of composition and heat treatment, appear to be the property-controlling factor rather than the micro-structure defined as a transformation product. Thus, the tempering resistance of this type of alloy steel is mainly a function of the size and distribution of alloy carbides.4 However, it is also necessary to consider the stability of the microstructure and the effect of dynamic carbide reactions on subsequent properties. It is the purpose of this paper to show the interdependence of properties and corresponding structures, particularly carbide reactions, developed for a limited set of controlled heat-treatment conditions applied to 1 Cr-Mo-V steel. MATERIALS AND PROCEDURE The material for this work came from a large production forging whose chemical composition is shown in Table I. The property data accumulated on this steel as a function of heat treatment were room-temperature tensile and smooth- and notch-bar creep rupture at 1050°F (notch geometry: shank diameter = 0.357 in., depth = 50 pct, radius = 0.005 in.). To achieve controlled structural variations the temperature and time of both austenitizing and tempering were varied in a manner to produce a series of eight steels each at one of two grain sizes and one of two hardness levels in proper combination for valid comparisons. This will be clear upon examination of Table I. Structural studies involved the use of optical and electron microscopy as well as X-ray and selected-area electron diffraction. To reveal the nature of carbide precipitations, electrolytic extraction techniques were used with subsequent analysis of the residue by X-ray diffraction. Weight losses of the steel specimens during electrolysis were measured and successive chemical fractionations of the residues were applied and checked by X-ray examination. The details of fine structural distributions, morphologies, and crystallography of the precipitates as well as dislocation distributions were investigated by examining in the electron microscope three common types of preparation. a) Relief Replicas. Mechanically polished sections were etched in 2 pct nital, replicated with a nitrocellulose film, which was shadowed by chromium vapor deposited at a glancing angle of 20 deg. b) Extraction Replicas. A thin film of carbon was vapor-deposited on the polished and etched surface. The carbon films were then etched off and gathered on electron-microscope supporting grids. The carbides left imbedded in the carbon replica in their original distribution were then examined crystallo-graphically by selected-area electron diffraction. c) Thin Films. Specimens were mechanically ground and polished down to a thickness of 0.001 to 0.003 in. Final thinning was done electrolytically in a "chrome-acetic" electrolyte. When holes began to appear in the foil, the voltage was interrupted and applied in several 1-sec bursts. Sections of the foil between holes were thin enough to pass a 100-kv electron beam that carries an image.

Jan 1, 1965

By E. Orowan

LONG before the role of dislocations in the plastic deformation of crystals was recognized, the stress-strain field around dislocations received considerable attention in the theory of elasticity. It seems that Weingarten1 was the first to consider dislocations as simple and typical sources of internal stress in elastic solids, and Volterra2 and Timpe3 investigated their elastic field. Fig 3-1 shows the two basic types of dislocations considered by Volterra. The first arises by making a straight-edged .plane cut in a solid, displacing the two surfaces of the cut in their own plane relatively to one another by a constant amount in a direction perpendicular to the edge, and welding them together; this is shown in Fig 3-la, where the outer cylindrical surface represents the boundary of the solid, and the thin spiral cylinder around the edge of the cut has been removed in order to avoid infinities of stress and strain. The second type of dislocation is shown in Fig 3-lb; here the surfaces of the cut have been displaced relatively to one another by a constant amount parallel to the edge, and then welded together. After J. M. Burgers,4 these two types are called edge and screw dislocations, respectively. They represent simple limiting cases; in the general case, the surfaces of the cut are displaced by a constant vector that lies in the plane of the surface but has components both parallel and perpendicular to the edge of the cut. This vector is the Burgers or slip vector. The name “dislocation” was given by A. E. H. Love;5 it was bor-

Jan 1, 1954

By Olof Löfgren

PART 1 INTRODUCTION All modern pelletizing plants are equipped with either the drum or the disc circuits. Choice of one or the other circuit is not simple and it is desirable to establish a firm basis for such a task. For a meaningful and a fair comparison it is necessary to have the two systems working in parallel in the same plant with the same concentrate under the same supervision. Furthermore, the comparison has to be based on a defined green ball quality and size distribution. BALLING CIRCUITS The LKAB straight grate plant at Malmberget, Sweden, was started up in Septenber 1973. It was designed for a 2.5 Mton annual capacity and was equipped with five balling drum circuits. During the first year of operation it was found that the induration plant had the potential for a higher capacity which required increased balling capacity. For this purpose it was decided to install a balling disc circuit complete with a roll screen. The reasons for selecting a disc were space limitations and LKAB's desire to gather experience on balling disc circuits. The disc circuit was started up in 1975 and was run in parallel with the balling drums in the same plant and with the same raw material and under the same operating personnel. The necessary conditions for a comparison were thereby fulfilled. The data for the size distribution and quality of the green balls were obtained on random sampling during one year of operation, so that all the variations which appear in a commercial plant are covered.

Jan 1, 1977

By Ernst F. Eurich

Alexander Parkes patented in England in 1851-52-53 a process for desilvering lead by means of zinc, making use of the greater affinity of silver for zinc than for lead, discovered by Karsten in 1842. The efforts in England to develop it commercially were not particularly successful, nor was the attempted introduction into the United States. This last was not surprising, as it was about the beginning of our Civil War, and at that period there was very little lead-bullion produced in the United States and there was no field for the process here. There was at that time on Staten Island an establishment that pattisonized lead, probably from Rossie, N. Y., and Chester, Pa., and possibly some Spanish lead, but the production of lead-bullion in the Far West had not yet begun. In 1864, Edward Balbach, of Newark, N. J., patented in this country a process for desilvering lead by means of zinc, and in 1867 Edward Balbach, Jr., patented a " movable black-lead retort with a neck, placed in a furnace," for the purpose of distilling the alloy of zinc, lead, and the precious metals. A brief comparison of the Parkes and the Balbach processes is interesting. The Parkes process as practiced in England consisted in stirring into silver-bearing lead, melted in a kettle, from 1 to 2 per cent. of zinc, cooling, skimming the alloy of lead, zinc, and silver that rose to the surface, liquating it in an iron retort, distilling the residual rich alloy in fire-clay retorts, thus regaining the zinc, and refining the desilvered lead at a low heat in a shallow cast-iron pan that formed the hearth of a reverbera-tory furnace. If the lead was too impure, it was first softened

Jan 1, 1913

THE Institute of Metals Division of the A. I. M. E. has joined with the American Society for Steel Treating and the American Welding Society in support of National Metal Week in Philadelphia, Oct. 8 to 12. Individual and joint technical sessions, plant inspection trips, and a general exposition to be held in Commercial Museum have all been arranged. With the coming of the Institute of Metals Division into the circle, the scope of the exposition has been broadened to cover non-ferrous metals, and exhibits of much interest are promised. Headquarters for the Institute of Metals and the American Society for Steel Treating will be at the Benjamin Franklin Hotel, and for the American Welding Society at the Bellevue-Stratford. The American Society for Steel Treating and the Welding Society will hold technical sessions each forenoon at their hotel headquarters. The Institute of Metals Division will hold sessions Tuesday morning and Wednesday and Thursday afternoons; that for Wednesday being a joint session with the American Society for Steel Treating. The latter society will hold independent afternoon sessions on Thursday and Friday. Registration and information desks will be open at the hotels throughout the week, and an attractive program of entertainments has been arranged.

Jan 1, 1928

By Sidney A. Swensrud

The 24-in. crude-oil line. and- the 20-in. petroleum-products line, built as a war emergency by the United States Government and running from points in Texas to the New York-New Jersey-Philadelphia area, were constructed only because of the inability during the war to continue nor-inal ocean tanker movements from the Gulf Coast to the East Coast. The postwar disposition of these lines may be considered as one of the important problems of the postwar readjustments in the oil industry, if not the most important one. In the first place there appear to be many complications in keeping the lines in crude-oil or petroleum-products service. This conclusion was reached also in a study by T. E. Swigart, President of Shell Pipeline Corporation.' Since the lines are too largc for any one company to utilize, and since it appears likely that a surplus rather than a deficiency of tankers will exist after the war, most companies probably will feel that they can achieve lower costs and more satisfactoiy results from the resumption of tanker movements to the East Coast rather than by endeavoring to take over or utilize the capacity in the large pipe lines under some tariff-rate structure. As for using the lines for making deliveries to the middle west or central eastern areas, it would appear that when the war is over and normal transportation arrangements can be resumed, there will be no need of any extra capacity for such deliveries. Therefore, the War Emergency lines could be utilized for this purpose only if privately owned pipe lines and other transportation facilities were to be displaced. Against this rather unprepossessing prospect for use in petroleum or product service is the fact that at or near the source of the lines lie the greatest developed gas reserves in the world, for much of which there is at present no satisfactory market outlet; and at the other end of the lines lies one of the greatest concentrations of population in the world, which is not now served by natural gas. These who have been fortunate enough to use natural gas can have little doubt of its desirability as a domestic fuel. An analysis of the market potentialities and comparison with other areas where natural gas is being distributed, and where it has displaced manufactured gas, makes it seem clear beyond question that the full capacity of both of the large-diameter lines could be fully utilized in this service, and this without creating any undue drain upon the gas reserves of the nation. On the basis of an estimated capacity of roo to 120 billion cubic feet per year, the gas that might be marketed through these lines would amount to only 3 to 4 per cent of the total con-

Jan 1, 1944

By T. Fraser, F. F. Giese, R. L. Sutherland

Under a cooperative agreement between United States Bureau of Mines and the Truax-Traer Coal Company, some operating-scale experiments have been made with the cyclone thickener in the preparation plant of the Shamrock No. 1 mine at Kayford, West Virginia. These tests were made with a 14-in. cyclone of the type developed by the Dutch State Mines in Limburg. It was applied experimentally to the thickening of solids in washery water to obtain performance data to show the range of sizes that may be recovered and other operating characteristics that would indicate the field of usefulness of this device in coal preparation practice. This is a progress report only. It covers results obtained in a series of 17 tests of the operation of what has been considered a unit of commercial size operating on suspensions of fine coal mixed with a relatively small amount of free impurities. The underflow material, after further dewatering in centrifuges, is a marketable grade of coal. The coal at Shamrock No. 1 is mined from the No. 2 Gas seam. It is made up essentially of a low ash coal suitable for byproduct use with one or more bands of splint coal of higher ash content suitable for industrial fuel. The washing plant was installed for the two-fold purpose of removing the free impurities incident to mechanized mining and to separate the run of mine coal into the two types. To accomplish these results it is necessary to make a separation at a specific gravity of about 1.4 to recover the byproduct coal and to separate the splint coal from refuse at a higher gravity. The coarse coal section of the washing plant was put into service about 10 months before the fine coal section was completed. Inadequate screening capacity in the raw coal preparation plant resulted in a portion of the fine coal being fed to the jigs. No provision for preliminary dedusting of the raw coal feed was incorporated in the design. Under the conditions in the initial operating period, separation at the desired lower gravity was not realized, apparently because of the presence of an excessive amount of fine solids in suspension in the wash water. Difficulty in wetting the fine coal may also have been a contributing factor. Additional facilities for the removal of the fine solids from the wash water was indicated. Information then available on the Driessen cone for this purpose was studied and a cooperative agreement with the Bureau of Mines for experimental work with a unit of standard size as developed by the Dutch State Mines was arranged. During the time required for construction of the cone it was found the addition of a small amount of wetting

Jan 1, 1950

Jan 1, 1884

By W. J. McConnell

OBSERVATIONS on man exposed to unusual temperatures and humidities, and studies conducted under accurately controlled environmental conditions, have supplied information regarding the physiological responses of the human body which may occur incident to such exposure. These investigations also indicate the relative importance of temperature, humidity and air motion-the three physical air factors that affect human comfort. Many and diverse were the conclusions of early investigators who associated the discomfort observed in crowded and ill-ventilated spaces with changes in the chemical constituents of the air resulting from presumably poisonous exhalations from the body. These are of interest today only because, as a recent editorial in the British Medical Journal1 states, there is still an inclination to believe in the old view that there is some injurious quality of the air in ill-ventilated and crowded rooms, quite apart from dust, microbic infection and heat stagnation. There is a tendency to fly to some mysterious unknown agent such as "deionization," which even certain American engineers are now discussing. This editorial denies the existence of the least proof of any subtle poison being exhaled by human beings or of the ionization of the air having any influence in making open-window ventilation better and more stimulating than mechanical methods which propel heated and conditioned air through ducts. Until proof is forthcoming that certain changes, with which we are not now familiar, occur in the transmission of air from the exterior to the interior of enclosures, the responsible known factors which initiate the physiological responses in human beings are limited to the combined conditions of temperature, humidity and velocity of the air. While some mention was made as far back as 1880 that high temperatures and humidities were undesirable, Hermans,2 of Amsterdam, is credited with suggesting in 1883 that the harmful effects noted in ill-ventilated rooms were due to the fact that the increased temperature and moisture of the air prevented the body from maintaining a proper thermal balance.

Jan 1, 1930

By B. C. Allen, W. D. Kingery

Surface tension and its temperature dependence have been determined for pure liquid Fe, Cu, Co, Ni, and Sn and for Fe-C, Co-C, and Ni-C alloys. The temperature coefficient of surface tension is negative for all these liquids. The surface tension and wetting behavior of tin and tin-titanium alloys on A120,, Si,N,, MoSi,, and Sic, as well as the behavior of titanium-containing nickel alloys on A1 20, have been determined over a wide temperature range. For all the solids investigated titanium additims markedly lower the contact angle. Some limits for the solid-surface energies have been calculated from liquid surface tension and wetting behavior. SURFACE tension and interface energy are important variables in a number of metallurgical and ceramic phenomena, and have been discussed at some length in connection with determining micro-structure of polyphase systems,' solid-state sintering,' thermal etching of grain boundaries, heats of solution and fine powders,'1 grain-growth phenomena,' the mechanical behavior of fine foils and fibers, nucleation, soldering and brazing,' and other phenomenz of academic or practical interest However, until recently few quantitative data have been available for high-temperature systems. Among available data are some indicating positive temperature coefficients for the surface tension of liquid copper,*,11,'2 cast iron,l3 and iron-carbon14 alloys. Although carbon was found to be not surface active in iron at 1570" some preliminary studies had indicated the possibility of a positive temperature coefficient for the eutectic composition at lower temperatures.16 One part of the present study has been largely concerned with determining the temperature coefficient of surface tension for several metals at elevated temperatures, In addition to surface-tension studies, the wetting behavior of alloys containing titanium has been investigated over a wide temperature range. Previous measurements indicated that titanium was selectively adsorbed from nickel at a liquid nickel-solid alumina interface,17 and the use of titanium hydride or titanium-alloy techniques for metal-ceramic soldering is well known. In the present study, previous data have been extended to new alloy systems, and measurements have been carried out with other oxidation-resistant ceramics. EXPERIMENTAL The sessile-drop method was employed to measure liquid surface tension and contact angle between liquid and solid, utilizing apparatus and techniques which have been described previously.'g The shape of a sessile drop depends on equilibrium between forces of surface tension tending to form a spherical surface of minimum area and forces of gravity tending to flatten the drop. Typical sessile drops are shown in Fig. 1. From precise measurements of maximum drop diameter and drop height the surface tension and drop volume were calculated. Four solid materials were employed as supporting plaques for the liquid-metal drops. Aluminum oxide (99.9 pct, J, T. Baker, reagent grade) was pressed and sintered at 1800°C. Molybdenum-disilicide powder (99.0 pct, Electro Metallurgical Co.) was pressed and sintered at 1650°C. Plaques were cut from silicon carbide (99.4 pct, hot-pressed at Alfred University) and silicon nitride (95.1 pct, with Al, Fe, 0 as major impurities, Norton Co.) rods. All plaques were polished, cleaned, and dried prior to use. A number of metals and alloys were employed. Chemical analyses of vacuum-melted ingots of iron, nickel, cobalt (National Research Corp.), commercial nickel-base alloys, electrolytic copper (International Smelting and Refining Co.), and tin (Mal-linckrodt Chemical Works) are given in Table I. Alloys were prepared in the laboratory by vacuum melting the base metal with either titanium hydride (Metal Hydrides, Xnc.) or spectroscopic-grade carbon (National Carbon Corp.). Nickel-titanium alloys contained between 0.001 and 0.005 pct oxygen and the ferromagnetic metal-carbon alloys contained 0.001 pct. Cylindrical metal specimens (1 to 2.5 g) were machined and bevelled at the bottom to insure a uniform advancing contact angle on melting. Before use the samples were acid-etched, cleaned with acetone, and rinsed in petrol ether.

Jan 1, 1960

By Young C. Kim

Abstract-The use of computer models to design the ultimate open pit limits during feasibility studies as well as during long-range mine planning is becoming an enforced Practice in all types of mining, e.g., ferrous, non-ferrous, and coal. As a result, the state of the art in computerized ultimate pit limit design methodologies and associated computing and optimizing techniques has advanced considerably in recent years. Unfortunately, very little has been published to date regarding the preferred ultimate pit limit design philosophy, i.e., optimizing m satisfying, or regarding the modeling approaches being used for different types of orebodies. This paper reviews the current state of the art in various modeling approaches and optimizing techniques that are in use for different types of deposits, through available literatures and personal communications.

Jan 10, 1978

By Richard A. Arnold

The evolution of planning processes in the United States from the early 1900's is briefly examined. From one year operating budgets, planning processes have evolved into sophisticated analyses of alternative long-term future strategies and the management issues and practices which relate to their implementation. Increasing complexity within the business environment has led to numerous planning methodologies and extensive use of computers to analyze operating and financial information. All of these developments, however, have not supplanted the real need for decision-makers to continue to give important weight to the intuitive or soft data inputs into the planning process.

Jan 1, 1985

By R. P. Ehrlich, D. A. Dahlstrom

In the hydrometallurgical circuit, many phase separation steps are usually necessary. Typical steps are pregnant liquor - leach residue separation by counter- current decantation or continuous vacuum filtration, clarification of liquids prior to precipitation, ion exchange or solvent extraction, dewatering of final product, etc. The paper discusses the more recent advances in these areas and considers general operating parameters and cost factors. In addition, emphasis is placed on future needs because of the growing importance and necessity of hydrometallurgical processing of minerals.

Jan 1, 1973

By Rodney G. Ravenscroft

Leasing is not a new phenomenon. Experts have identified its origins as early as biblical times. It is a method of finance that has grown rapidly and is now used in most countries, including those of South East Asia, South America, the Middle East and even the People's Republic of China. Internationally, the leasing world divides fairly easily into two groups and this is determined, by and large, according to whether a country has Anglo-Saxon origins or not. Most of the Anglo-Saxon countries have seen tax-oriented leasing become a sophisticated means of financing the acquisition of large and costly items of equipment and large projects. Countries such as France, Spain and Japan have a highly developed leasing industry but it is not tax-oriented. This paper will not address leasing of this kind. LEASING - THE CONCEPT Wide acceptance of leasing as an alternative for financing capital equipment has grown with the recognition by the users of equipment that it is use and not ownership that generates profits. Whilst this seems obvious, memories of repossession of assets during the Depression and attitudes towards leasing as "last resort financing" have raised strong philosophical resistance that has only recently begun to be overturned. A financial lease is a commitment by way of contract between a user of equipment (lessee) and a financial owner (lessor) under which the lessee makes a series of payments in return for use of the equipment. The lessee is acquiring economic value associated with ownership but not ownership of the equipment itself - that remains with the lessor. A lease is a method of financing the use of an asset; other methods finance the assets themselves. It is the taxation aspects that then become important. The lessee is giving up some or all of the taxation benefits of ownership such as depreciation and investment tax credits. The lessor claims these benefits, as he is entitled to do as owner, and takes them into consideration when determining the level of lease payments that are necessary to generate his required rate of return. These lease payments are, of course, lower than they would have been without those taxation benefits. The lease payments themselves are fully tax deductible. This is tax shelter leasing. The lessor is acquiring taxation deductions that are applied fully and immediately against his other taxable income so as to reduce the amount of tax he is to pay to the revenue authorities. It is this concept that makes financial leasing work. Governments provide incentives by way of tax concessions to encourage capital investment. Governments presume that prudent capital investment will offer employment opportunities, generate sales and streamline economic activity. These, in turn, will lead to the collection of government revenue. It makes no difference at all whether these incentives are claimed by a commercial or industrial owner/user or by a financial owner who makes equipment available for use by industry. Rather, the issue is to ensure that if an incentive is available, it is used so as to achieve its desired results. No greater or lesser incentive is available for leasing and leasing does not misuse the taxation aspects of equipment ownership. The critical issue is whether the full value

Jan 1, 1985

The American mining industry is vigorous today because it is young. At a time when the ore deposits of central Europe, for example, were being exploited actively, those of the United States were lying practically untouched. The founding fathers of our republic were not interested in mineral wealth because they were ignorant in such matters; their preoccupations were with defence against the Indians, the clearing of the forest, and the starting of agriculture in their new domains. They had no idea of establishing a mining industry. The Indians whom the American colonists dispossessed had no mines; they used only the metal that was to be found lying on the surface of the ground. Their arrows and spears were tipped with flint, which likewise called for little digging, if any. The native copper that glacial action had torn from the lodes of the Lake Superior region and had carried into the valleys of the Ohio and Mississippi was employed in the making of earrings, bracelets, knives, and scrapers. The same useful metal was found in many other places, in Virginia and Carolina, in Vermont and New Jersey, for example, but the Indians did not know how to melt it, much less how to smelt the ore, therefore they shaped it into tools and implements by hammering. Fortunately for them the hammering of the metal caused it to harden and therefore to become serviceable for implemental use. It is doubtful if they obtained the copper by actual mining, that is, by digging or excavating; it is true we find traces of such operations in the Keweenaw .peninsula of Michigan, but we have no

Jan 1, 1932