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By Armando M. Lago

Secular and cyclical patterns of postwar sources and uses of funds of the mineral sector are analyzed. A simultaneous equation behavior model of sources and uses of funds is developed for both mining firms and integrated producers, and these models were put through the task of predicting the financial and expenditure be-havior of mineral corporations in response to mergers and changes in investment tax credits and depletion allowances. Finally, the quantitative analysis methodology is applied to the analysis of optimum capital structure of mining corporations. The postwar changes that have occurred in the expenditure and financial behavior of mineral corporations are reviewed, particularly the relative importance of factors that affect the industry's supply and demand for funds. This quantitative statistical investigation of factors affecting sources and uses of funds of mineral corporations is achieved through the formulation of a simultaneous equation model of sources and uses of funds. After a description of the study sample, the postwar cyclical and secular financial behavior of mineral corporations is analyzed in detail. An econometric model of mineral corporate financial behavior is formulated. This model is then estimated and reviewed. Policy issues regarding depletion allowances, investment tax credits, and industrial organization of the mineral sector are discussed. Finally, the optimum financial structure of mining firms is discussed and the effect of corporate financial structure on the mining corporations' average cost of capital is analyzed.

Jan 1, 1971

By Warren G. Burres

or more than 50 years the Portland Cement Association has represented the United States cement industry in matters relating to the technology and use of cement and concrete. Interestingly enough, PCA?s emphasis has been on concrete and its uses rather than on Portland cement. The cement industry realized long ago that cement is basic and serves its fundamental purpose as an ingredient in concrete. Cement could never be successful if concrete were not. Work with the users and specifiers of concrete had to be done at its end point of application--in a building, bridge, dam, highway or home. PCA, over its half century of existence, has been dedicated to this job. I should like to talk to you today on the less technical side of concrete--what it has been--what it is today--and what it can offer in future construction. Concrete, in many forms, has a long background extending from such notable historic times as the Roman Empire. Here, concrete made from pozzolanic cement from the slopes of Mt. Vesuvius was used to construct the Coliseum, home of the Roman circus; for the Appian Way, the ancient forerunner of the Interstate system; and the miles of aqueducts throughout Europe, many of which still carry water. In 1811 Joseph Asppin, an English bricklayer, made the first modern cement by the artificial mixing of pulverized limestone and clay materials. Ht,

Jan 1, 1971

By H. Rumfelt

Surface excavators for mining coal and such non- metallic minerals as quarry stone, gypsum, phosphate and the like have advanced tremendously in the last 50 years, and their advancement has paralleled that of excavators used in the construction industry during the same period. Up to a certain stage, the construction industry led the way with this development and even pioneered in how the equipment was used. Afterwards, however, new mining machinery and related operating techniques progressed along a different path than their construction counterparts because of the different demands of the two industries. The word "stage" as used above quite generally connotes a transition period, possibly of several years' duration, during which mining development followed the construction industry. Later, mining branched out and responded to its own needs. Most readers are familiar with the events which led to the development of the power shovel. The first dredge was recorded as having been used in England in the latter 1700's and was no doubt developed along the lines of some notes written in the late 1400's by Leonardo da Vinci.

Jan 1, 1971

New Zealand's Land and Income Tax Act 1954 contains unique incentives for companies engaged in mining certain specified minerals or petroleum. Sections 152 and 153 provide for the taxable income of such companies to be based not on profits made but on dividends paid to shareholders. A significant saving in tax results, particularly where profits are not distributed: but the Act attempts to ensure that undistributed profits are used for further mineral exploration and development. To encourage investment in the mining industry, persons taking up shares in a company mining for the specified minerals or petroleum are entitled to a one-third deduction in respect of monies paid on the shares and used by the company for its purposes; and company shareholders may make loans to the company and write-off such loans for tax purposes to an amount of up to half their taxable income. Maximum utilisation of the tax incentives calls for careful consideration as to whether a mining or petroleum company should be financed by way of loan capital or share capital.

Jan 1, 1971

When the mining and milling of 1100 copper orebody commenced at Mount Isa a satisfactory grade of copper concentrate was difficult to produce. The major concentrate contaminants were fine pyrite and silica, particularly in the minus 10 microns fraction. Studies of the 1100 orebody showed that much of the fine grained pyrite and a proportion of the silica present in the ore contained carbonaceous matter in the form of complete or partial rims and as internal carbon films disseminated throughout grains. The hydrophobic surface property of the carbonaceous material resulted in inherently flotable fine pyrite and siliceous particles.The addition of a 60:40 mixture of nigrosine and dextrine, initially to a prefloat concentrate of the inherently flotable carbonaceous material and finally to the total copper flotation feed, successfully controlled the flotation rates of the carbonaceous pyrite and silica. The objective of a 25 per cent Cu concentrate grade was then achieved without decreasing copper recovery.

Jan 1, 1971

By L. A. Neumeier

The Bureau of Mines evaluated creep and other properties of extruded Zn-30 pct-AI alloys containing 0 to 0.7 pct Mg. The alloys were extruded both above and below the Zn-Al eutectoid temperature of 275° C. Creep behavior is defined for the alloys as extruded and after various heat treatments. Tensile properties, hardness, thermal expansivity, impact resistance, and microstructures are given. The alloys, either with or without magnesium, required substantially less pressure for extrusion near 275° C than at higher or lower temperatures. The alloys containing magnesium exhibited significantly greater hardness, tensile strength, and creep resistance, but much lower ductility than the 2n-30 pct Al alloy. The properties were very sensitive to the processing conditions.

Jan 1, 1971

By Donald P. Moore

During April 1967 a Frasch sulfur mine was placed in operation near Fort Stockton, Pecos County, in West Texas. This was the first Frasch mine to recover native sulfur from a deposit not associated with the caprock of a salt dome. Since 1967 two additional mines have been opened in west Texas, another one near the first at Fort Stockton and a third one near Orla in Culberson County (Figure 2). Recoverable reserves at the Culberson County mine are estimated to be 57,000,000 long tons of native sulfur (Zimmerman and Thomas, 1969). Total recoverable reserves at the three mines probably exceed 60,000,000 long tons, Studies of the geochemical cycle of native sulfur mineralization in test Texas indicate an origin similar to the deposits on salt domes although the geologic framework is different. A comparison of the geologic setting of the west Texas deposits with the deposits in the Union of Soviet Socialist Republics as reported in the literature, reveals many similarities. ACKNOWLEDGEMENTS The writer wishes to express his appreciation to Cities Service Minerals Corporation for support throughout this study. Special thanks are due Dr. Chris Riecken and Mr. Dave Hardy for their

Jan 1, 1971

By J. R. Ruark

This report presents results of the research and development work and operations performed during stage II of the gas combustion retorting research program conducted by the Colorado School of Mines Research Foundation and six major oil companies at the Bureau of Mines Anvil Points Research Facilities. The experimental program, including retort modification and air-gas distributor development, effects of shale quality and particle-size distribution, and other variables on the process, is discussed. Although operating problems are not fully resolved, it appears that the gas combustion retorting process can be successfully applied to achieve oil yields in excess of 85 percent of Fischer assay at mass shale feed rates of 500 pounds per hour per square foot of cross-sectional bed area, approximately twice the rate previously demonstrated to be reasonably practicable.

Jan 1, 1971

The New South Wales coal industry is a highly mechanised well organised industry which has developed from an annual production of slightly less than 13 million tons in 1950 to over 33 million tons in 1969. Although continuous miners were not introduced into the mines until 1950, by Jillle 1969 the percentage of coal won by these units was 87.3. The paper describes mining conditions in the various coalfields of the State, their complexities and problems and how these have been dealt with. The introduction of fully mechanised long wall faces has presented a challenge which has been accepted and descriptions of systems in use are discussed. Major expansion of the industry is anticipated to meet the requirements of the growing Australian steel industry, for local power generation and to meet the increasing demands of overseas markets.

Jan 1, 1971

The phosphatic overburden of Christmas Island is a lateritic soil and consists dominantly of crandallite and millisite. These minerals are polymorphs of general formula, (Na,K)x Ca2-x (Al, Fe)6 (PO4)4 (OH)10-x (2+x) H2O. Iron occurs only in millisite. Both minerals exhibit similar thermal transformations, dehydroxylating near 600¦C and recrystallizing above 800¦C. Dehydroxylation results in crystal structure collapse but retention of crystal morphology. Ggethite, boehmite and apatite are minor constituents of some-of the phosphatic Soils.

Jan 1, 1971

With the recent wider introduction of friction hoists of the Koepe type. for winding from depths of more than 3000 feet it has been found that failure by fatigue is the most common form of rope deterioration. Large numbers of wire breaks occur near the centre of the rope cross-section and it is difficult to detect these with certainty using the preferred d.c. magnetic test. For best results with conventional search coils their dimen- sions should be related to the typical wire break field pattern surrounding the longitudionally magnetised rope. The field of a broken wire was experimentally determined, using a Polish type MD6 Defectograph wire rope testing magnet and a short prepared length of rope with a movable simulated broken wire. The external field distortion perpendicular to the rope was measured by means of a gaussmeter and Hall probe. The advantages of this method are that terrestial magnetism and inherent rope "noise" have no effect on the results.

Jan 1, 1971

By Robert S. Holmes

The U. S. Army Corps of Engineers Explosive Excavation Research Office (EERO) of Livermore, California, has been engaged in research and development of excavation techniques using both nuclear and conventional explosives since 1962. Prior to July 1971, this organization was designated the U. S. Army Corps of Engineers Nuclear Cratering Group. The EERO mission is performed as part of the joint Atomic Energy Commission -Corps of Engineers nuclear excavation research pro-gram. During the period 1962-1969, the Corps executed many cratering explosions using spherical charges of up to 85 tons of nitromethane to model nuclear excavation concepts and to develop design criteria for the nuclear cratering explosions. The experience gained in these modeling tests suggested that explosive excavation using large chemical explosive charges could be applied to excavation projects as an economical substitute for traditional excavation techniques. Consequently, the Corps' research program was broadened in 1969 to include development of chemical explosive excavation as a construction tool. The term "explosive excavation" denotes the use of large buried explosive charges to produce an excavation by fracturing the material and casting it into a desired configuration. In its simplest form, this technology involves detonation of a single explosive charge buried at the proper depth to produce a crater which is roughly hyperbolic in cross section. The types of craters produced by various depths of burial are illustrated by Figure 1. Single or Multiple rows of charges are used to excavate linear cuts required for water conveyance or navigation channels. .More complex explosive excavations include small craft harbors, railroad and highway cuts, and removal of W1denvater rock barriers to navigation. While the literature indicates widespread use of large explosions in the (1) ERRO is a field activity of the Waterway Experiment Station, Vicksburg, Mississippi

Jan 1, 1971

By C. A. Komar

Hardness, tensile strength, and impact toughness of dry and brine-saturated sandstone specimens were measured at ambient, cryogenic, and elevated temperatures as a measure of the relative stability of reservoir rocks for subsurface disposal of liquid wastes. Hardness measurements were inconclusive. Tensile strength and impact toughness were significantly higher at -320° F than at ambient temperature, but were relatively unaffected at 700° F. Impact toughness was reduced by subjecting the specimens to three cycles of rapid temperature changes (thermal shock) over a 1,000° F range. Tensile strength of brine-saturated sandstone was less than that of dry sandstone. Based on results of the tests, reservoir sandstone likely would be stable if exposed to extreme temperatures of liquid wastes, although rapid changes in waste temperatures should be avoided.

Jan 1, 1971

By Galen G. Waddell

This report describes a method of measuring and analyzing the initial deformation which occurs in the medium surrounding a mine accessway as the opening is created. Discussed are (1) the hypothesis upon which the research is based; (2) the in situ rock-deformation measuring equipment developed; (3) the field tests, consisting of measuring the deformation of the medium around two 4-foot-diameter raise bores as the boring progressed; and (4) a finite-element technique to correlate theoretical with experimental results, using elastic theory. Described also are the raise-bore operation and performance. The instrumentation developed proved to have the sensitivity and resolution necessary to measure rock deformation around a full-scale raise bore during excavation. Tests show the relationships of rock deformation to progress of the raise boring and to time. The initial deformation of the opening appeared to be elastic. Using the deformation records and an estimated field stress, the modulus of elasticity was determined for the rock mass. In addition, the importance of this type of measurement in assessing support-problem areas is discussed.

Jan 1, 1971

By B. J. Scheiner

Carbonaceous gold-bearing ores of the type that occur in north-central and northeastern Nevada were investigated by the Bureau of Mines as part of its Heavy Metals Program. Specific objectives were to identify the carbon and organic compounds that prevent adequate gold recovery from the ore by cyanidation and to develop an economical process that would overcome the detrimental effect of the carbonaceous constituents. Activated carbon and long-chain organic compounds containing sulfur and nitrogen were found in the ore. Part of the material consisted of stable gold organic complexes. A mild oxidation technique that allowed gold extraction as high as 96 percent by subsequent cyanidation was developed. A variety of oxidants was shown to be effective in improving gold recovery, including chlorine and sodium hypochlorite (NaOC1). An electrolytic oxidation process was developed that was particularly advantageous from an economic and effectiveness standpoint.

Jan 1, 1971

By J. A. MacLellan

It is the hope of the author that this paper, largely a compilation of observations and opinions built up over 20 years of experience in cold and remote areas may be of some help to others in designing better plants for the future in the north. The north is not as difficult to operate in as the better story tellers make it appear to be. ()n the other hand for 6 months of the year the cold is always there, and it seems to be waiting for someone to make a mistake. The simplest things can shut a multi-million dollar plant down at -4n' F with a 4n M.P.H, wind. It only takes one man door improperly latched to freeze up all the pumps on the bottom floor. Someone can poke a one inch hole in an outside wall in July and six months later while you are having Christmas dinner, a watchman will call up to report that the whole plant is flooded because the main water line just froze up and burst. Basic things to remember in plant design for cold and remote areas are: everything in these areas is more expensive due to long and difficult supply lines. Fuel is expensive and would be a major cost item even if it were not expensive, due to the extended periods of low temperatures. Building volumes should therefore he kept to an acceptable minimum. Service areas on the other hand must he adequate, because maintenance generally has to be conducted inside in a heated area. Supply vehicles for instance have to get completely inside the building to unload. If you try to unload a supply vehicle with the door open at -50° F, you won't be able to find the vehicle for fog and if you take more than 5 minutes half the water lines in the plant will freeze up. People in a remote area are expensive. The capital investment per employee may be as high as $30,000; with fringe benefits per annum costs of an employee will he as high as 812,000 per year regardless of basic wage rate. It

Jan 1, 1971

By J. A. Bartnik

Flocculation, the process of coagulation or coalescence of finely divided particles, is commonly used in separating fine solids from fluids. Forces disposing of the particles to flocculate include: ionic forces of attraction, secondary entropic forces, and magnetism. Magnetic flocculation is due to a physical magnetizing process which affects suspended ferromagnetic particles. Such particles, after exposure to magnetic fields strong enough to cause reorientation of the particles and alignment of the induced magnetic poles, tend strongly to retain this induced magnetism, as the magnetic retentivity of ferromagnetic particles is a linear function of its specific surface.1 Thus, because they become small magnets with high residual magnetism, the particles become and remain attracted to one another, forming large agglomerates. Fine magnetic particles close to domain size can exhibit energies of the magnetization of the order of 105 ergs/cm3,2 which is many times greater than the energy affected by chemical flocculents. Therefore magnetic flocculation can be used to agglomerate particles having surfaces ionized with like charges and only a minute quantity of ferromagnetic material will be necessary to develop sufficient force to overcome the repulsive ionic forces and hold together relatively large masses of fine solid agglomerates suspended in fluids. Since flocculation occurs after the fine suspension passes through a magnetic field generated by magnets surrounding a pipe section, the simplicity of the process and economic advantage makes magnetic flocculation very attractive.

Jan 1, 1971

By Neil H. Bostick

A specialized electronic data system processes data taken from normal gologic maps and stratigraphic tables to yield predictions of uranium resource location for an area such as much of the United States. Strata underlying specific quadrangle cells of the earth are evaluated for uranium favorability on the basis of selected criteria of lithology, structure, and stratigraphy but not specific past production in the area. Stored data are computer processed to yield volume of likely host rock beneath each cell to a given depth and at a given favorobility level. Results are plotted by machine directly as maps. A specialized and simplified procedure for predicting approximate uranium resources has been devised at Stanford Research Institute (SRI). The prediction is based on general geology beneath specific area cells of the earth in order to provide complete volume coverage; the strata underlying these areas are evaluated for uranium mineral favorability on the basis of a few selected geologic criteria in order to allow rapid data input. In order that the predictions be generally applicable, they are based on geological factors only, not past ore production of a given cell. Since the bulk of U.S. resources are in elastic host rocks, only such strata are considered in this work. This paper describes the structure and some details of the resource system and how it was tested in an area of the western United States.

Jan 1, 1971

By Gherman Pavlovich Nikonov

Results of preliminary research on the use of small diameter water jets at high pressure for cutting rocks has demonstrated the possibility of effective cutting of anthracite. Detailed research has, therefore, been conducted at the Skotchinsky Institute of Mining to study the dynamics and structure of the small water jets and the mechanism by which they cut coal. One of the objects of this research was to obtain data for the design of a machine for cutting rock, based on the same principles as that for cutting coal. The productivity of water jet mining machines depends on the hydro- dynamic parameters of the jet. Therefore, the research on small diameter water jets was directed, initially to a study of the nature of the variation of these parameters, and to obtain a profile of dynamic pressure distribution over the section of the jet. As has been confirmed previously, the required jet pressure (to cut coal) lies in the range of 100 to 500 atmospheres. These pressures were utilized for the research. The diameter of the nozzle was changed as ~follows; 0.97; 1.24; 1.5; 2.17; 2.87; and 3.57 mm. Graphs showing dynamic pressures for each nozzle diameter and varied axial dynamic pressure were obtained over distances ranging from 2 to 70 cm from the nozzle. One of the most important hydrodynamic parameters of a jet, closely related to the dynamics of jet disturbance in air, is the magnitude of the axial dynhmic pressure. A study of the variation in this pressure with increasing distance from the nozzle led to the separation of the jet into three specific parts, which differ from each other not only in the nature of the change in dynamic pressure, but also in structural properties.

Jan 1, 1971

By Larman J. Heath

Liquid incendiaries were burned within the interstices of several different types of sandstone cores to determine the technical feasibility of increasing sandstone permeability by this method. Fuel-oxidant mixtures were tested in 186 cores; six cores exploded when ignited. In virtually all instances, the explosion completely pulverized the sandstone cores. In addition n those cores damaged by explosions, 24 cores were fractured so severely that permeability tests were impossible. Although combustion gener¬ally increased the permeability, specific mixtures at given pressures were inconsistent in their ignition and burning behavior. Tests indicated that the heat of burning incendiaries significantly increased sandstone permeability. The improved permeability ratios were usually less than 2, but one was 10.3. Permeability alteration by other in situ methods was not as effective as that by flame propagation.

Jan 1, 1971