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By C. N. Reid

In the course of annealing studies on molybdenum, it has been observed that a carbide precipitates preferentially on internal and external surfaces. The evidence for this is as follows. Electropolished bend specimens prepared from two grades of commercial molybdenum were loaded in a closed but unsealed tantalum can, and were annealed for 1 hr at 2000°C under a vacuum of 1 x 10-4 torr. The compositions of these materials are summarized in Table I. The samples were then slowly cooled at an average rate of 10°C per min, and were examined when cool. The surfaces of specimens prepared from Molybdenum A were consis- tently clean and featureless, except for thermally etched grain boundaries, see Fig, l(a). On the other hand, Molybdenum B had surfaces containing many needle- and featherlike markings, see Fig. l(b). These features were present in all surface grains, and within a given grain belonged to families

Jan 1, 1965

PRESIDENT OF THE COUNCIL. D. W. BRUNTON DENVER, COLO. (Term expires February, 1910 ) VICE-PRESIDENTS OF THE COUNCIL. J. PARKE CHANNING NEW YORK, N. Y. FREDERICK W. DENTON PAINESDALE, MICH. JOHN B. FARISH NEW YORK, N. Y. (Term expires February, 1910 ) W. C. RALSTON SAN FRANCISCO, CAL. W. L. SAUNDERS NEW YORK, N. Y. H. V. WINCHELL MINNEAPOLIS, MINK. (Term expires February, 1911 )

Jan 1, 1910

By Ziebell, Howard A.

THE Washington magnesite deposits, located in the hilly and mountainous northeastern part of Washington, occur as massive lenses in a sedimentary series made up of dolomite, shale, and quartzite, into which basic dikes have intruded. The ore pattern resembles a series of disconnected chain links extending approximately 25 miles in a south-west direction. Magnesite in this district is all crystalline and closely associated with dolomite, talc, serpentine, and basic dike rock. All deposits which have been developed are near the surface so that quarry-bench mining has been possible. For over twenty years hand sorting magnesite ore at the quarry face was standard practice. Ore cars were hand trammed on 30-lb rail systems which led from the face to ore passes or raises for the magnesite ore and to the waste dumps for disposal of the rejected waste material. This system was somewhat modified by the use of Dempster Dumpster trucks. The ore was, however, still sorted by hand from the calcium and silica bearing waste rock. Power equipment. consisting of one 3/4-yd electric shovel, was

Jan 1, 1949

THE CHAIRMAN (G. H. CLEVENGER, Stanford University, Cal.).¬I would like to ask Mr. Pyne if he has had any experience inn the use of chromite as refractory under conditions that are highly reducing? I am reminded of an experience I once had with an electric furnace. I imagined that chromite would form a splendid lining, but it soon disappeared; hence it seems probable that, under highly reducing conditions at a high temperature, chromite is a very poor refractory. F. R. PYNE.-In copper smelting the atmosphere is generally neutral, or slightly oxidizing; we do not use highly reducing atmospheres at all, not even in the matting furnace. You can take the chromite brick and treat it as you would an iron ore, obtaining ferro-chrome very readily, from which the copper will separate. We have done this; in fact, at one time we considered installing a small electric furnace for the production of ferro-chrome. FOREST RUTHERFORD, New York, N. Y.-During the time I was general superintendent at the smelter of the Copper Queen Consolidated Mining Co., at Douglas, Ariz., a great many experiments were made on the furnaces and settlers with different kinds of brick, and I agree with Mr. Pyne's statements about chrome brick. Their power to absorb metals is very great, and as they cannot be smelted at any temperatures obtainable in a copper furnace, to get rid of the bats and extract the metal from them is quite a problem. We finally got down to using chrome brick only for lining the settlers, out of which we often got a life of upwards of 2 years, and for lining the blast-furnace bottoms, for the reason that chrome brick can be heated and wet, or wet after being heated, without going to pieces, whereas under these conditions magnesite brick will break down very rapidly. We also used a layer of chrome brick above and below an 18-in. band of magnesite brick put on the slag line of the reverberatories, in order to separate the magnesite from the silica brick, fearing that they would slag each other and let the wall drop. The idea worked, but became unnecessary on account of a change made in the method of feeding the furnaces. Chronic brick will not stand up under pressure so well as a good Grecian or Austrian magnesite brick, on account of the poorer bonding properties of the materials from which the chrome brick is made.

Jan 4, 1918

By M. T. Martinson, I. W. Nicholson, C. J. Chindgren, F. P. Williams, L. C. Bauerle, S. F. Ravitz

The vanadiferous shales of southeastern Idaho and southwestern Wyoming constitute the largest known reserve of vanadium in the United States.' These deposits have never been exploited except for the relatively small amounts of vanadium recovered by the Anaconda Copper Mining Co. in the treatment of phosphate rock from southeastern Idaho. The maior domestic source of vanadium has been the sandstone ores of southeastern Utah and southwestern Colorado. Early in World War 11, it appeared that these ores could not meet the greatly increased demand for vanadium, so the investigation described in this report was undertaken to develop processes for the recovery of vanadium from the Idaho-Wyoming deposits. The utilization of these deposits became unnecessary, however, because of greatly expanded production from the Utah-Colorado sandstone ores and the continued availability of vanadium from other sources, chiefly Peru. The major use of vanadium is as an alloying agent in the manufacture of high-quality steels. Vanadium constructional steels usually contain 0.05 to 0.20 pct vanadium, which refines the grain and increases the strength, elastic limit, and resistance to shock and fatigue. Vanadium tool steels not used in high-speed work contain 0.10 to 0.60 pct whereas high-speed tool steels contain 1.0 to 4.0 pct. Vanadium compounds are used as catalysts (principally for the oxidation of SO2 to sulphuric acid and of naphthalene to phthalic acid) and in the paint, chemical, ceramic, dye, and printing industries. The selection of the particular ore deposit to be exploited would involve consideration of many factors besides the metallurgical results that might be obtained. Chief among these would be the reserves of ore available, the grade of the ore, and the mining costs. As very little was known about any of these factors, it was necessary to investigate methods of treatment of all the ores under consideration, working with samples obtained in the course of the exploration work, even though they were not positively representative of the whole deposit from which they were taken. Because of wartime conditions prevailing when this investigation was started, first consideration was given to processes that could be put into operation most quickly and would involve minimum use of strategic materials, even though these processes might not be the most economical.

Jan 1, 1949

By M. R. Hatfield, F. J. Vosburgh

In a recent article, it was shown that in the blast furnaces in Germany that are lined with carbon blocks no cooling plates are used, and that shower cooling is employed on the hearth and bosh sections. While one of the authors was in Germany he was told that one furnace was being operated without even the shower cooling on the bosh section, though the hearth section was shower-cooled. In discussion of this interesting situation with a number of blast-furnace operators in this country, it was made clearly and promptly evident that shower cooling was very unpopular, probably because of its messiness and its ineffectiveness. Both of the causes for the dislike of shower coolings are reasonable ones. Shower cooling can be and frequently is messy, but the present cooling of blast furnaces leaves much to be desired on that score. Shower cooling is ineffective as compared with plate cooling, so far as its usefulness in keeping the bricks cool enough not to melt or fall to pieces is concerned. However, the introduction of carbon linings changes the situation. No one is concerned with keeping a carbon lining cool, for no temperature in the blast furnace has any effect on carbon, which is just as stable at 3000°F. as it is at 70°F. The only concern is for the shell—to keep it cool enough for safety and comfort— and for that shower cooling is sufficient. Of course, with only the shell to cool, instead of the shell plus all the refractory material, much less water would be required, and the necessity for constant attention to the flow would be lessened, as the hundreds of inlets and outlets would be eliminated. Probably half of the water used in cooling a blast furnace is used for cooling the shaft and tuyeres and the remainder for the bosh and hearth sections. However, in view of the dislike of shower cooling in the United States, and particularly because at least one German blast furnace is operated with no cooling of the bosh section, thought was given to the possibility that a carbon-lined blast furnace might be operated without any cooling of the entire carbon-lined portion. For that reason a series of experiments was performed to determine what might be the temperature of the shell of a blast furnace protected by a carbon lining and operated under varying conditions up to a maximum inside temperature of 3000°F. Experimental Procedure A schematic diagram of the experimental setup is shown in Fig. I and a photograph of the entire assembly in Fig. 2. The heating element was a a tubc nominally 25/8 in. 0.d. by 2 in. i.d. by 30 in., used as a resistor. Power was furnished by a I5-kva. transformer operating

Jan 1, 1942

By F. H. Vitovec, D. W. Hoeppner

Pusk-pull fatigue tests were conducted on copper tricrystals of 99.988 pct purity to ascertain the role of grain boundaries in the initiation and propagation of fatigue cracks. Significant differences in behavior were found for specimens which possessed different transverse-boundary misorientation. In speciwens with low boundary angles cracks initiated within the transverse boundary, while higher angles led to transcrystalline fatigue failure. It is suggested that at low angular misorientation moving dislocations may interact with dislocations of the boundary or dislocations present in adjacent pains on favorably oriented glide planes, thus initiating a fatigue crack. MANY fatigue studies have been concerned with fatigue-crack initiation within grains and the mechanism causing initiation and propagation1-3 Although the initiation of fatigue cracks in or near grain boundaries of pure metals has been observed and reported in the literature, the mechanism of this phenomenon has received little attention.4"11 EXPERIMENTAL PROGRAM Testing Procedure. To investigate the role of grain boundaries regarding initiation and propagation of fatigue cracks, copper tricrystals were tested in push-pull. Axial-stress tests were used to avoid the stress gradients introduced by stressing of some other nature. Copper was selected as the most suitable test material since extensive work has been done on the formation of fatigue-induced slip in copper. Tricrystal specimens were used to provide a grain boundary geometry with one boundary transverse to the principal stress axis and one or more boundaries nearly coincident with the direction of maximum resolved shear stress. The boundary energy and the slip characteristics in the vicinity of the transverse boundary depend on the relative orientations of grains across the boundary. Testing was done at room temperature, at a frequency of 700 cpm, in an atmosphere of either air or argon. It is known that the incidence of grain boundary cracking increases with increasing temperature and decreasing frequency.4 The fatigue machine applied a uniaxial tension-compression load to the specimen by a flat spring which was actuated by an adjustable eccentric. Use was made of an adjustable head and a load cell which had strain gages mounted at 120-deg intervals around its periphery, thus providing a means for eliminating any detectable superimposed bending moment. A clip gage was mounted between the gripping heads to record the cyclic strain amplitude applied to the specimen. Each specimen's hysteresis characteristics were recorded by supplying the load and strain signals to an oscilloscope. Microstructural changes were observed and recorded with an optical microscope which was mounted on the fatigue machine. Immediately prior to insertion in the machine, each specimen was chemically polished. Extreme care was exercised while inserting the specimen in the test machine to avoid either bending the specimen or introducing a mean load. Each specimen was stressed in the tensile direction first and subsequently the load was reversed. Specimen Preparation. Tricrystal fatigue specimens of 99.988 pct Cu were grown from the melt using a modified Bridgman technique. Ingots about 1 in. high were grown to the configuration shown in Fig. 1. Upon sectioning the resultant ingot, several specimens were provided with an identical shape and grain boundary orientation. Except for plane sectioning and final polishing, this method eliminated machining the specimens. The apparatus used for growing the tricrystals is shown in Fig. 2. A spectrographically pure graphite mold, Fig. 3, was inserted in a vycor tube which was mounted on a vertical zone-refining table. Prior to insertion in the tube the mold was assembled as follows. The insert and graphite rods were fixed in position in the mold. The copper was then placed in the mold and the entire mold assembly was positioned in the vycor tube, Fig. 2. At this point the tube was sealed, evacuated, purged with helium gas, and finally placed under a slightly positive helium pressure. The heating coil was then adjusted to melt the copper charge, after which it was raised at a speed of 4 in. per hr. It is also possible to use

Jan 1, 1964

ALASKA Established November 19, 1947 Regular meetings fourth Monday of each month except June, July, and August Theodore A Loftus, Chairman John C Boswell, Vice-Chairman Patrick H O'Neill, Secretary-Treasurer Box 1034, Fairbanks, Alaska District Vice-Chairmen Robert L Thorne, Juneau, Alaska Alfred J Lomen, Jr , Nome, Alaska Donald G. Wilcox, Anchorage, Alaska

Jan 1, 1952

By H. J. Wasson

With the close of 1932 and the third year of the depression, the activity of oil production presents, amidst the general wreckage and chaos of industrial society, a somewhat unique picture of rationalized economic effort. How long it will continue to present such a picture, however, is a subject for conflicting surmises. East Texas still dominates the contemporary horizon, but it has become, at least for the time being, a definitely known factor. With its 9500 wells it is approximately 90 per cent drilled up. So long as production control obtains, it is merely one important factor of the national oil reserve. Domestic Production The notable new discoveries in the United States were less numerous than for several years. Elsewhere in the world the record is much the same. The Conroe field in Montgomery County, Texas, lying in an intermediate zone that might be classified either as Gulf Coast or East Texas, represents perhaps the single example of a truly major discovery during the year. Elsewhere in Texas the new pool discoveries, about a dozen or so in number, were nearly all in the region known as Southwest Texas. Oklahoma contributed seven or eight new pools of the routine "run-of-mine" caliber, and the opening up of a few deeper oil pays also were of some significance. Continued expansion of the proved and semiproved reserves in Kansas added an important increment to the oil resources of that state. In California not a single new field was added to the roster, though deeper pay zones equivalent to or of greater importance than many new fields in other parts of the country were discovered or indicated. The new deep zone in the Belridge field is considered by some to underlie the prolific Temblor and may thus forecast the widespread distribution of a potentinl oil horizon underlying many San Joaquin Valley fields below the depths thus far exploited. Aside from the routine operations in connection with settled production, the Eastern fields were decidedly inactive. Further new develop-

Jan 1, 1933

By Clarence E. Sims

DURING the past several years the steel casting industry has made studies of heavy castings in which the test bar has been taken from heavy sections rather than from attached or separately cast coupons. It has been noted that the ductility properties of these heavy sections are often lower than those normally expected. Such lowered ductility is usually accompanied by a spotty test bar fracture and the ductility values often can be greatly improved if a low-temperature aging treatment is given to the casting. A loss of ductility of this type is considered "abnormal," since it is not accompanied by an increase of tensile strength or hardness, and "temporary" when the ductility can be restored by aging. The cure of such an abnormal condition represents a real improvement in the quality of the steel. Some hundreds of previous investigations, largely qualitative in nature, have established beyond reasonable doubt that hydrogen is normally present in newly manufactured steel and that this gas, in small amounts, can cause a temporary abnormal loss of ductility. The commonly observed association of high gas content and low ductility has given strong evidence for the presumption that hydrogen, possibly assisted by other gases, is the primary cause of the low ductility observed. Accordingly, the Steel Founders' Society of America has, since Nov. 1, 1944, sponsored investigations at Battelle Memorial Institute whose primary objective is to obtain quantitative information on the relation of the amount of hydrogen and nitrogen in steel, together with associated methods of steelmaking and treatment, to low-ductility effects and porosity.

Jan 1, 1947

By Klaus Schwerdtfeger, Hans-Jürgen Engell

Activities of silicon in Ni-Si melts have beelz determined in the temperature range 1480° to 1610°C from electromotive-force measurements involving the cells The data obtained are used to derive the activities of nickel and the integal free energies of mixing. Entropies of mixing are calculated from the free energies of mixing as obtained in the present study and the heats of mixing as available in the literature. ACTIVITIES in Fe-Si and Co-Si melts have been determined recently by the authors&apos; using galvanic cells consisting of alloy, an oxygen electrode, and an oxide melt as electrolyte. The present paper deals with activities in Ni-Si melts as measured with the same technique. A schematic diagram of the cell is shown in Fig. 1. The alloy and the electrolyte consisting of CaO and SiO2 are contained together in a silica-glass crucible. During the experiment the silica glass crystallizes to cristobalite on the surface of the crucible. Nickel contents of the electrolyte are very small (<0.1 pct as checked with chemical analysis), because of the noble character of nickel in comparison with silicon. A tapered silica tube is connected to the crucible through which a platinum or molybdenum wire is inserted, as shown in Fig. 1. A platinum tube reaches the surface of the CaO-SiO2 electrolyte from above. The platinum tube is provided with four holes on its side, through which oxygen of 1 atm pressure is blown over the electrolyte. The cell reaction is given by the equation Si(metal) + O2(gas) = SiO2(electrolyte) [3] and the galvanic electromotive force of the cell is given by the formula

Jan 1, 1965

By C. E. Arnold

IN attacking the problems of mining and treating large disseminated copper orebodies such as those occurring in the Miami or the Ray district of Arizona, one of the vital questions to be decided is, "What is the value of the orebody per ton in place?", The importance of this question lies in the fact that its answer helps to reach a decision concerning the method of mining to be employed. Let it be assumed for the moment that milling and smelting practice, especially the latter, is more or less standardized; and has a cost incapable of much variation, while the cost of mining has a considerable range owing to the large number of mining methods by which a mine may be exploited. For instance, a method may be adopted whereby all the available ore can be extracted perfectly clean (i.e., unmixed with barren material) at a relatively high cost; or a method may be used involving the necessary dilution of a portion of the ore with waste, in order to recover that portion, thus giving a relatively poorer extraction but nevertheless a lower working cost than the former method. Naturally, between these two extremes there lie intermediate methods. In order to arrive at a solution of a mining method problem that is of any value, it is necessary that accurate and complete estimates of mining, milling, and smelting performances and costs shall be established. By way of illustration is given a, case of mining, by the system of undercutting and caving, a large orebody with an average content of 1.50 per cent. copper supposedly all in sulphide form, to which case has been applied those results in mining operations which one may fairly assume are to be expected when viewed in the light of G. R. Lehman&apos;s ore-drawing experiments, which form the subject of a paper to be presented at this meeting. It is assumed that the total. costs will be as shown in the following table:

Jan 9, 1916

It has been suggested that it would be a desirable feature in connection with the Chicago meeting of the, Institute in September to arrange for a return trip for the fuel men through the coal fields of Illinois, Ohio and Pennsylvania, stopping at various points and possibly touching also Kentucky. Perhaps the petroleum men would be interested in a similar trip and might join them stopping off at different points to visit these oil fields. If the members who would-be interested in such a trip will advise the Secretary before the first of June, indicating their desired stopping points, steps will be taken to perfect arrangements accordingly.

Jan 5, 1919

By Robert Glass Cleland

WITH the acquisition of the Nichols Copper Company &apos; and the development of the large Copper Products manufacturing and selling organization, the Phelps Dodge Corporation had attained two of its important goals. But at that particular time both its immediate and long-range prospects were giving the company serious concern. The financial panic that began late in 1929 was growing worse instead of better. Neither raw materials nor finished products could find a market. In 1932 the price of copper fell to the almost unprecedented figure of four and eight tenths cents a pound. Domestic production of copper in the United States was further threatened by a large low-cost output from the mines of Africa and the Andes. Canadian copper mines, with their large yield of other valuable metals from the same ores, added to the difficulties of the American companies. After a hard-fought campaign, however, the producers of domestic copper finally induced Congress to levy a duty of four cents a pound on copper imported into the

Jan 1, 1952

By E. J. Schmitz

The existence of copper-ores in the Permian measures of Texas has long been known, and these ores have been, from time to time, the object of geological researches and mining

Jan 1, 1897

By S. C. Sircar, B. K. Dhindaw

KINETICS and mechanism of sulfation reactions have been studied extensively. Qualitative and quantitative data are reported for the kinetics and mechanism of sulfation reaction of copper oxide pellets;&apos;&apos;2 yet it remains a controversial Subject. The mechanism and kinetics of the sulfation of zinc oxide powder (B.D.H. analar quality) were studied by gravimetric technique. A spring of high-carbon steel wire with accuracy well within 0.2 mg was used for measuring weight change. The sample was taken in a Pyrex glass bucket, hanging freely inside a Pyrex glass tube reactor, with a gold wire attached to the spring, the reactor being surrounded by a movable furnace (double wound type) with a temperature control within *5"C. Flow of oxygen, 60 cu cm per min, and sulfur dioxide, 45 cu cm per min, were measured through calibrated flowmeters and the mixture dried over PZ05 before entering the reactor. The experimental results are presented in Figs. 1 and 2. The plot of weight change of zinc oxide, giving the amount of zinc sulfate formed, was found to be linear over the temperature range of 500" to 700° C and up to a conversion of approximately 60 pct, as beyond it they divert from linearity.&apos; The rate of sulfation was found to be affected by total flow rate of gases at a fixed ratio of SO2/O2, up to 60 cu cm per min, and was found to be linearly dependent on quantity of total powdered sample taken. The plot of rate of sulfation of zinc oxide, 70 mg, with varying amounts of vanadium pentoxide, at a constant ratio of gases as mentioned above, and at a constant temperature of 625"C, was also found to be linear as seen in Fig. 2. Extrapolation to zero V2O5 addition gives the same rate of sulfation, as in case of pure zinc oxide, 70 mg. Vz05 was prepared by heating ammonium vanadate at 600°C for 15 min in a muffle furnace. The available literature points out that the theory of sulfation that has received the maximum support postulates the following mechanism for sulfation of ZnS: 2ZnS + 30, = 2Zn0 + 2SOZ; the ZnO formed acts as a catalyst for the reaction, 2 S02 + O2 = 2S03. This SO3 reacts with ZnO to give zinc sulfate. It is suggested here that the above widely supported mechanism is operative in the sulfation reaction and that the rate-controlling step in the sulfation reaction of ZnO is the formation of SO3 from SO, and 0,. The authors are carrying on further work in this line, and the details will be published later. The authors wish to acknowledge the facilities provided and the help extended by Prof. P. R. Dhar, Head, Department of Metallurgical Engineering, and the permission granted to publish this note by the Director, I. I. T., Kharagpur.

Jan 1, 1969

By J. D. Forrester, Erich Sarapuu, T. C. Cheasley

Electrocarbonization of coal will produce cheap fuel for electric power plants. The complete electrification of industry and domestic power consumption of gas generated as fuel in situ is a worthwhile goal for the coal industry. Production of synthetic oils, gasoline, and coal chemicals from coal gas will create additional new markets for the coal industry. RANKING high in the nation&apos;s wealth of natural resources, readily available liquid and gaseous hydrocarbons are nevertheless falling steadily in supply, while industrial requirements for hydrocarbon compounds are greater today than during the peak period of World War 11. Theoretically, several processes will increase the future supply of liquid and gaseous fuels, but the practical application of these methods depends on two controlling factors: 1—that enough carbon-bearing material be available to warrant industrial exploitation, and 2—that the given process be physically, chemically, and economically applicable. With regard to the first factor, the Western Hemisphere is fortunately well supplied, see Table I. Table I not only shows the extensive occurrence of many fuel sources, but also the wide discrepancy among quantities of fuel substances in various materials. Great quantities of potentially available fuel have not been recovered. Many coal seams and other hydrocarbon-bearing deposits are so situated that production is uneconomical by present-day mining or oilwell pumping methods, and even in many exploitable deposits where the most efficient production methods are used a large proportion of material is never recovered. Industrial production of hydrocarbon liquids and gases must be better balanced, and processes must be developed which will convert coals, oil sand, and oil shales into fabricated commodities. Among the techniques employed by scientists and engineers to secure fuel masses not economically available at present are several processes of underground gasification. These are all concerned with converting raw materials into gaseous products by thermal treatment of source substances while they are still in the ground and therefore require that a subsurface heat (fire) zone be induced to affect pervasively the buried raw fuel deposit. This is possible only where sufficiently high temperature exists and where the fuel material is satisfactorily opened or channelized. Also, to compete successfully with common mining or oilfield practices, a given method must be controllable and must not involve greater operational expense than regular methods. Preferably, it should be less expensive. Since the close of World War 11, England has continued field studies of underground gasification methods. Experiments have also been conducted in Sweden, Estonia, France, Belgium, Italy, and Germany. The U. S. Government has sponsored field studies at Gorgas, Ala., and because gasification in situ is vitally important to establishment of the nation&apos;s fuel resources, the mining engineering department at the Missouri School of Mines has been actively interested in developing the process of underground electrocarbonization. Research was conceived by Erich Sarapuu, and preliminary experiments in treating bituminous coal were begun at the school in September 1947. The work consisted of laboratory experimentation until June 1948, at which time, through a cooperative agreement with the Sinclair Coal Co. of Missouri, pilot plant studies were instituted at the Tiger mine of the Hume-Sinclair Coal Co. near Hume, Mo., to test the encouraging laboratory findings. This comprehensive field program was pursued continuously until the beginning of 1952."&apos;" The broad term underground electrocarbonization describes a unique gasification process that releases by electricity the desired economic constituents from a raw carbon-bearing material, converting the substance of such deposits into deliverable form and greatly reducing the cost-of-mining factor. Underground electrocarbonization is not subject to the major limitations of many other underground gasifi-

Jan 1, 1955

By Granville S. Borden

MANY complaints have been filed by mine prospectors, explorers and producers about inequities in mining taxation. They have insisted upon improvement, and in the past 35 years there has been some progress. Many of the best taxation provisions made to date are those contained in the Revenue Act of 1951. Mining economics presents special problems, a fact even recognized by many textbooks. Certain provisions have been made to take care of mining taxation rights, but these have been made by Congressional act and do not represent basic, constitutional, guarantees. Despite special provision, in the form of depletion allowances, there remain injustices. The industry faces the problem of gaining adequate income tax allowances for exploration and development expenditures, operating losses, and bonus and subsidy payments. Problems in mine taxation arose soon after the adoption of the 16th Amendment. This amendment gave Congress the power to impose income taxes. Supreme Court decisions against a number of mining companies held that Congress, under its power to tax income, could tax net operating revenue before depletion allowance was deducted. The court also ruled that the right to deduct depletion is a matter of Congressional permission. There is no statute provision permitting mining stockholders to recover their investment out of dividends while the mine is being operated. The Supreme Court did not recognize that part of mining proceeds are actually amortization of the cost of mineral rights. Both these omissions stem from failure to recognize that by its very nature mining consumes its mineral rights and therefore that a part of gross proceeds are not income but recovery of capital. Suppose a Congress unfriendly to mining interests repeals the provisions that allow deductions for depletion. Under such a situation assume that a corporation buys a mineral deposit for $300,000. They mine the deposit and earn an operating profit of $500,000. At the current rates they would pay a Federal Income tax of in excess of $250,000. This venture results in a loss of $50,000 as shown in the table below. For the example given the absence of depletion provisions in income tax law would turn ore into waste rock, because the word "ore" connotes commercially mineable rock. [ ] In retrospect the conclusion is clear: If the Supreme Court had recognized that a part of mining proceeds represent in reality sales proceeds of mineral rights, then profits derived from such sales would have been taxed at the favorable long-term capital rates, instead of being taxed at the high normal, surtax and excess profits rates. It is a question whether percentage depletion allowances offset this tax situation. History The history of depletion allowances has been one of general improvement. The original act did not include depletion, but an allowance at the rate of 5 pct of gross proceeds was provided in 1913. The Acts of 1916 and 1917 allowed depletion upon cost of property, and in 1918 the law was further changed to permit depletion upon cost, or market value as of date of discovery. In 1932 metal, coal and sulphur properties were permitted to elect depletion in percentages of gross income, limited to 50 pct of net income, in lieu of cost depletion. Shortly thereafter the rule was changed and percentage depletion is now allowable in any case where it is higher than cost depletion. Since 1942 percentage depletion allowances have been extended to cover many nonmetals, and in 1951 the rate for coal mines was increased from 5 to 10 pct of gross income. It is interesting to note that these allowances have been retained, and even

Jan 1, 1952

By M. J. Langley

The American Zinc Company’s mining operations in East Tennessee are located in Knox and Jefferson Counties. Mineralization occurs, intermittently, through a strike length of more than 30 miles, from near the eastern edge of Knoxville northeastward to a few miles beyond Jefferson City. The presence of zinc in these Counties has been known for well over 100 years. In 1910 it was brought to the attention of American Zinc Company that zinc sulphide deposits in the Mascot area might be attractive. Following an examination and some surface prospect drilling, the American Zinc Company of Tennessee was organized and acquired the Mascot properties in 1911. Operations began in 1913 on the basis of 1,000 tons per day mill capacity. With the successful operation of the Mascot mines, the Company undertook explorations in the area from Jefferson City southwest through Friends Station to Mascot. The efforts resulted in development of substantial tonnages of zinc ore and enabled the Company to expand the Mascot and New Market milling operations to their present capacity of 11,100 tons per day. Folded and faulted Paleozoic sedimentary rocks under- lie the mining district. The principal zinc mineralization occurs in a group of strata known as the Knox

Jan 1, 1970

By William M. Brewer

Until quite recently, in fact within the past two gears, but little attention has been given to the outcrops on the west coast of Vancouver Island, and their copper-contents. During the past few months the writer has been engaged in examining and developing some of these prospects. In many respects he has found characteristics associated with these prospects which, in his experience, are unique. In the first place, nearly all the outcroppings which overlie chalcopyrite-ore along the west coast of the island are composed of a high-grade magnetite. The magnetic qualities of some of these outcrops arc so pronounced that the magnetite possesses polarity. Although the writer hinlsclf had no analyses of this magnetite made, yet from its appearance he can readily believe that analyses made for other parties, which show a yield&apos; of 62 or 63 per cent. of metallic iron, with only traces of phosphorus and silica, are correct. At a very shallow depth, masses of chalcopyrite, yielding in some instances as high as 32.6 per cent. of copper, occur associated with the magnetite; and in one instance, which recently came under the writer&apos;s observation, a solid body of high-grade chalcopyrite, fully 4 feet in thickness, occurs Within 6 feet of ; the surface. Usually this solid sulphide-ore carries low values in gold. Probably ail average of&apos; $2 per toil would be fairly representative. But in some instances development has determined the occurrence of narrow stringers of pyritous quartz, associated with the sulphide-ores, which yield by assay more than $20 per ton in gold. In the districts examined by the writer, the country-rock is usually crystalline limestone, with dikes of igneous rock as intrusions. Sometimes the outcrops of magnetic iron-ore are

Jan 1, 1900