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"The method of conveying ore from the ore-pocket at the shaft collar to the railroad ore bins, whence it is transported to the reduction works, is by cars with electric haulage.The cut shows the car coupled to the electric locomotive at the moment of dumping into the railroad ore bins.The locomotives used are of several makes, usually having two 12 ½ h-p. motors of a rated draw-bar pull of about 1,200 lbs., using 500 volts D. C. Track gauge is 30 inches, and speed is six miles per hour.The car holds two skip loads-10 tons—and has sides opening outwards the full length of the car, for rapid side-dumping. One man operates car and motor, and loads and unloads the car. The trolley pole runs in both directions without reversing.Loading is clone by operating a valve connected to a compressed air lift, which raises and lowers a gate in the ore-pocket chute, the ore running by gravity into the ore car spotted under the gate of the chute. Dogs hold the sides of the car in place at the bottom, the tops of the sides being hinged, and a hand lever releases the dogs, permitting the sides by the pressure of the ore against them to open at the bottom.With little manual effort one man does the work which was formerly done, when hoisting ore with cars and cage, by 10 men under laborious conditions."

Jan 1, 1913

By Sylvan Cromer

The need for a clear understanding of the physical nature of the flow of gas-liquid mixtures in vertical pipes is ever becoming more apparent. This type of flow is encountered when gas and oil are produced from a well; when water is removed from gas wells with siphon lines and when liquids are elevated by means of air or gas lift. Although a number of investigator1-7 have published data on the flow of gas-liquid mixtures, in only a few cases has the experimental setup been devised to permit visual study. In the fields of heat transmission, such as the boiling of liquids and the study of the critical phenomena of the hydrocarbons, researchers have been able to throw additional light on heretofore unexplainable happenings through actual observation in glass apparatus. This investigation was therefore undertaken in order to obtain qualitative as well as quantitative results for air-water flow. Experimental Apparatus and Procedure The flow column used in these tests was made of standard 2-in. pipe and was approximately 98 ft. in height. Pyrex observation sections 2 ft. long having the same internal diameter as the wrought-iron pipe were placed at 14-ft. intervals in the column. The bottom of the tube was cut off square and terminated in the mixing chamber. No perforated nipple or footpiece of any kind was used. To the top of the column was fastened a semicircular return bend having a 4-ft. radius. The flow column was supported by a standard cable-tool drilling derrick (Fig. 1) into which were built observation platforms at each Pyrex section.

Jan 1, 1940

By Sylvan Cromer

The need for a clear understanding of the physical nature of the flow of gas-liquid mixtures in vertical pipes is ever becoming more apparent. This type of flow is encountered when gas and oil are produced from a well; when water is removed from gas wells with siphon lines and when liquids are elevated by means of air or gas lift. Although a number of investigator1-7 have published data on the flow of gas-liquid mixtures, in only a few cases has the experimental setup been devised to permit visual study. In the fields of heat transmission, such as the boiling of liquids and the study of the critical phenomena of the hydrocarbons, researchers have been able to throw additional light on heretofore unexplainable happenings through actual observation in glass apparatus. This investigation was therefore undertaken in order to obtain qualitative as well as quantitative results for air-water flow. Experimental Apparatus and Procedure The flow column used in these tests was made of standard 2-in. pipe and was approximately 98 ft. in height. Pyrex observation sections 2 ft. long having the same internal diameter as the wrought-iron pipe were placed at 14-ft. intervals in the column. The bottom of the tube was cut off square and terminated in the mixing chamber. No perforated nipple or footpiece of any kind was used. To the top of the column was fastened a semicircular return bend having a 4-ft. radius. The flow column was supported by a standard cable-tool drilling derrick (Fig. 1) into which were built observation platforms at each Pyrex section.

Jan 1, 1940

By W. H. Emmons

IN 1922 Morey made a series of experiments in which he observed the cooling of a molten system containing H20, 9.1 per cent; K20, 17.3 per cent and Si02, 73.6 per cent. This system was confined in a bomb; it was fluid at 500° C. and exerted no vapor pressure. In cooling to 420° C. a large part of it crystallized and at that temperature much of the water had separated from the crystals and remained as steam, which built up a pressure of 4998 lb. per sq. in., a force sufficient to lift nearly one mile of granite.1 If granite, cooling at 600°, expels vapor in the process of crystalliza-tion it is reasonable to suppose that a considerably greater vapor pressure would result, and it is thought that the vapor expelled from crystallizing granitic batholiths probably has a pressure sufficient to lift two or three miles of granite. This vapor, collecting near the tops of cupolas of batholiths, is believed to exert sufficient pressure to fracture the hoods and roofs of batholiths above the cupolas. If that is true, one would expect to find that the fracture systems above cupolas are arranged in patterns that depend in part on the shapes of the cupolas. The mechanics of the situation seem to require that conical cupolas should have radial fracture patterns, that bluntly rounded cupolas should have fracture systems that are either irregular or rudely conjugated in plan, and that elongated stocks or cupolas should have fracture systems in which the fractures lie nearly parallel to the direction of the elongation of the cupolas.

Jan 1, 1934

By Sylvan Cromer

THE need for a clear understanding of the physical nature of the flow of gas-liquid mixtures in vertical pipes is ever becoming more apparent. This type of flow is encountered when gas and oil are produced from a well; when water is removed from gas wells with siphon lines and when liquids are elevated by means of air or gas lift. Although a number of investi-gators1-7 have published data on the flow of gas-liquid mixtures, in only a few cases has the experimental setup been devised to permit visual study. In the fields of heat transmission, such as the boiling of liquids and the study of the critical phenomena of the hydrocarbons, researchers have been able to throw additional light on heretofore unexplainable happen-ings through actual observation in glass apparatus. This investigation was therefore undertaken in order to obtain qualitative as well as quanti-tative results for air-water flow. EXPERIMENTAL APPARATUS AND PROCEDURE The flow column used in these tests was made of standard 2-in. pipe and was approximately 98 ft. in height. Pyrex observation sections 2 ft. long having the same internal diameter as the wrought-iron pipe were placed at 14-ft. intervals in the column. The bottom of the tube was cut off square and terminated in the mixing chamber. No perforated nipple or footpiece of any kind was used. To the top of the column was fastened a semicircular return bend having a 4-ft. radius. The flow column was supported by a standard cable-tool drilling derrick (Fig. 1) into which were built observation platforms at each Pyrex section.

Jan 1, 1939

By E. C. Rien

When the electrical system for a surface or open pit mine is designed, four major considerations should be satisfied in the following order: safety, reliability, flexibility, and cost. Careful planning initially will make expansion for future growth economical as well as possible without extended shutdown of operations. Electrical requirements in surface and open pit mining can be divided into three categories: main substation, plant power, and pit distribution. These systems are integral to each other, but will be dealt with separately here. 11.2-1. Main Substation. A main substation for a mining operation may vary from a 500 kva transformer supplying 480-v power to motor-driven pumps and conveyors, to a 50,000 kva substation serving a large beneficiation plant or a large strip mining operation. Regardless of size, it should be designed with the realization that a failure of the main substation will totally shut down the operation (Fig. 11.2-1.). Location of a main substation usually is a compromise between expense of running the incoming high-voltage transmission lines and the voltage drop of long secondary runs. Based on a geological survey for immediate and future areas of excavation, the main substation should be located as near to the center of load as possible. The site should be out of the blasting area, readily accessible to authorized personnel, and situated where prevailing winds will keep it free from dust or snow. DISCONNECTS AND OVERLOAD PROTECTION. The main substation should have a primary disconnecting device-either a pole top gang-operated switch and fuses of adequate interrupting capacity or, preferably, an oil circuit breaker with properly coordinated relay protection.

Jan 1, 1968

By A. A. Steel

DUring the summer of 1905 I was employed by the U. S. Geological Survey to investigate the geology, mining, and preparation of barite in most of the fields of the United States. The Eastern districts have been more or less completely described; the Virginia field in detail by Thomas L. Watson, in his paper, Geology of the Virginia Barite-Deposits,' and other fields in abstract, including statistics of production and references to current literature, by various authors.2 There have also been published a few details of the occurrence of barite in the lead-mines of Washington county, Mo.³ The other accounts of this district are erroneous and meager, and since this field is the most important one in the United States at the present time, a detailed description of the local geology seems doubly desirable. Barite-deposits are scattered over nearly the whole of Washington and adjoining counties, but the product is all mined from the areas indicated upon the sketch-map, Fig. 1, and is shipped from the stations of the St. Louis, Iron Mountain & Southern railway, between Blackwell and Potosi, from 45 to 60 miles SW. of St. Louis. The topography is for the most part gently rolling, with slightly graded streams, usually less than 200 ft. below the higher hill-tops. Along Mineral fork and Indian creek are some steep bluffs and cliffs, affording good exposures of the

Jan 1, 1910

By W. R. Crane

The effect of mining in the red-ore mines of the Birmingham district has been observed for some time, but, except in a few localities, little difficulty has been experienced from disturbance of cover. Cave-ins near the outcrop and fracturing of the surface at greater distances are the most pronounced manifestations of disturbance, while limited areas at points distant from the outcrop and under greater depth of cover have actually subsided. were it not that the orebed is overlain by one or more water-bearing formations, the fracturing or settlement of the surface would not be serious; but because of these formations, fracturing of the top rock may in itself be of sufficient importance to warrant the adoption of protective measures. Further, the collapse of pillars over a wide area may develop squeezes that, if not controlled, may jeopardize the integrity of the mines and necessitate a change in development, from slopes to vertical shafts, at a much earlier period than is now contemplated. Drainsge in these mines has been discussed in papers on mining practice,' but the fact that water, varying from 0.16 to 3.46 and averaging 1.43 times the amount of ore mined, has to be pumped from the mines daily, indicates the importance of the problem and the advisability of making a thorough investigation of the source of mine water, its mode of entry into the mines, its effect upon mining conditions, and consideration of means of improving the conditions.

Jan 1, 1927

By John W. Chandler

INTRODUCTION Where and how to spend the exploration dollar to net the greatest economic return, has always been a major problem for mining companies. Minerals are being consumed in ever increasing quantitie: throughout the world and the mining industry is being called on to meet this demand. In view of the present world-wide nationalistic trend, it is becoming more difficult to determine where exploration money can be spent most profitably. An exploration project should be evaluated continually--in the beginning, to define economic targets and later to determine, as early as possible, whether a project has a chance of developing into a venture that will make a profit acceptable to top management. At this point, a decision can be made whether or not to proceed with plans to bring in a new mine. Exploration, evaluation, and development, therefore, must be fully integrated in transforming an exploration project into a profitable mining venture. DEMAND FOR LEAD AND ZINC Lead and zinc are metals basic to our economy and the demand for them will continue to rise as the population in the world increases. If the population continues to grow at the present rate, it will about double by the year 2000. The accelerating demand for these metals is shown by statistics. Nearly half as much lead (48%) and more than half as much zinc (55%) have been mined between the two world wars as in all pre- ceding history. (1)

Jan 1, 1970

By David A. Summers, Clark R. Barker, Marian Mazurkiewicz

In May 1975 the U.S. Bureau of Mines contracted with the University of Missouri-Rolla, Rock Mechanics and Explosives Research Center to develop a Hydrominer modification to a longwall shearer unit, wherein the rotating pick-laced drums and connecting gear drives are replaced by a water jet cutting ahead. The concept of the water jet cutting head is based on using the high localized energy of the water jets to isolate a slice of coal by cutting a slot under, at the back of, and at the top of the web. The plow blade of the head then advances into the cut and wedges the coal cantilever over onto the conveyor [(Fig. 1)]. There were several potential advantages foreseen for the system; perhaps the most significant were the elimination of coal dust from the working area and the ability, with a variation in nozzle geometry, to cut webs of greater depth with a small increase in haulage horsepower. The University initially designed the head, based on experiments carried out in the laboratory, under an earlier Bureau of Mines contract. The experiments showed that it was more advantageous to work at a pressure of 68.9 mPa (10,000 psi) with an estimated flow rate of 3.15 X 10 - 8 m3/s (50 gpm) than go to the higher pressures and lower flow rates which have been advocated elsewhere.

Jan 1, 1979

By Beverley S. Randolph

The coal-measures of George's Creek coal-region, in Maryland, lie in a comparatively flat synclinal basin, about 4 miles wide. The dip of the measures is, in places near the edge of the basin, as much as 20 feet in 100. The Pittsburgh seam, known locally as the " Big Vein," is the only seam worked at the present time. Ocean No. 3, one of the large mines of the Consolidation Coal Company, has its opening on the outcrop of the Pittsburgh seam, in a ravine which cuts into this seam to such an extent as to bring this opening to within a mile of the axis of the basin. After working all the coal to the rise of this point, the mine was further developed by extending a slope down the dip of the seam, making such an angle with the line of greatest dip as to give a grade varying from 1 to 10 per cent., down which the empty cars carry a rope from a single-drum winding-engine. The coal was worked from each side of this slope in successive Iifts during its progress. From the top of the slope, for a distance of 4000 feet to the fourth lift, the " make " of water is drained by gravity through a heading into the adjoining mine. Below this point the water was pumped into this same heading, at the fourth lift, from which point, as before mentioned, it flowed by gravity.

Jan 1, 1895

By R. S. Bradley

WHAT are known as insulating firebrick are lightweight firebrick with low thermal conductivity designed primarily for use in direct contact with furnace gases. These are a recent development in the refractories industry, and are really an outgrowth of the type of insulating brick suitable for use behind refractory walls developed by the insulation manufacturers. To differentiate between these two types of brick, the manufacturers have recently agreed upon the use of the term "Insulating Firebrick" to apply to the type of brick suited for use in direct contact with furnace gases, and the term "Insulating Brick" for the type suitable for use behind refractory walls. Insulation was applied to steam pipes as far back as 1900. This was a low-temperature insulation, the most common type being magnesia blocks. The next development was applying insulation to the outside of furnace walls, a service which necessitated an insulating material of higher temperature resistance. Natural diatomaceous earth, both in the powdered and brick form, was used; this was efficient and is still used extensively for backing up refractory walls where the inner surface temperature of the insulation does not exceed 1600° F.

Jan 1, 1937

PURPOSE OF STUDY The case study was initiated because of the very real need to provide the best mineral inventory block estimates possible for the relatively new Sacaton mine. Sufficient mining had been done and records kept whereby it was possible to test the various estimation methods against detailed blasthole samples taken during mining. Three estimation methods were selected for testing: (1) the polygonal method, (2) the inverse distance squared method (IDS), and (3) the geostatistical kriging method. The results of the comparative analysis was thought to have very practical application to the selection of extension functions for future estimation of grade for mineral inventory blocks. GENERAL GEOLOGIC DESCRIPTION The porphyry copper deposit of the Sacaton open pit mine is related to small quartz monzonite intrusives of Laramide age which have been intruded into Precambrian granites. Both rock types act as host for the mineralization, which has been secondarily enriched sufficiently to constitute ore. The chalcocite enriched zone has been subjected to postenrichment oxidation processes with consequent partial destruction of the chalcocite blanket. Several mineralogical populations are represented in the total ore zone, but the blocks on the mine benches involved in the study were restricted to the top of the enriched zone. COMPUTATION OF MINERAL INVENTORY BLOCK ESTIMATES In order to make valid comparisons among the three estimation techniques, all of the inventories were prepared from diamond drill assay data used in the original engineering feasibility study. The data was taken from ex-

Jan 1, 1980

By L. H. de Wald, J. Walter Scott

The removal of lead by fire refining methods from copper of electrolytic quality is growing in importance. Particularly is this true of the refining of secondary copper and copper cathodes obtained from electrolytic cells where lead is used as the anode material, as in the electrolysis of ore-leaching solutions and foul electrolyte. When investigating the removal of small amounts of lead from molten copper in a reverberatory furnace during the refining of secondary copper of otherwise electrolytic copper quality,' it was found necessary first to know something about the distribution of the lead throughout the bath. The authors believe that it is not generally known how small amounts of lead as an impurity are distributed in a molten copper bath; that is, whether the lead is concentrated at the bottom or at the top, or whether it occurs more or less uniformly throughout the bath. The data contained in this report may help, therefore, in the development of a satisfactory fire refining method for the removal of this obstinate element from a molten copper bath. The first step was the development of a method for taking samples from various locations in the bath, at the surface and at various depths. The sampling device used, shown in Fig. 1, consisted of a 10-gram fireclay assay crucible fitted into a ring on the end of a steel rod handle of suitable length. A fireclay scorifier, 2 in. dia., with a ½-in. hole bored in the

Jan 1, 1930

By F. S. McNicholas, R. L. Healy

NOTEWORTHY because of the amount of explosives used, the tonnage broken, and the wide range involved both vertically and laterally, was a large underground blast fired last November at the Hidden Creek mine, Anyox, B. C. Stoping methods and mining prac¬tices at the Hidden Creek mine have previously been described in the technical press. Earlier mining methods employed included shrinkage stoping, glory-holing, and "spiral" stoping. The latter especially has been a practice peculiar to the Granby company, having been used for years at its Phoenix mines and later at the Anyox property where conditions as to size of orebodies and strength of ground both in the ore and walls were similar. These methods all leave tremendous excavations supported at key points by pillars and braces that may only be safely mined by big blasts.

Jan 1, 1935

By George Krauss, M. Cohen

The reverse martensitic transfomzation (i.e., the conversion of martensite to austenite on heating) was investigated in Fe-Ni alloys containing 30.5 to 33.5 wt pct Ni. The reversed austenite was found to be sufficiently distorted to exhibit marked differences in mechanical properties and to undergo recovery and re crystallization on further heating. In particular, the yield strength of the reversed austenite was as much as 2.5 times higher than that of the virgin austenite: with five cycles of the direct and reverse martensitic transformation, the yield strength was 2.6 times higher. There was an accompanying decrease in strain-hardening capacity and in stable ductility or uniform elongation. The recrystallization was observed to follow sigmoidal kinetics, but was characterized by an abnormal1y large temperature dependence which was evidently due to carbon segregation at the migrating grain boundaries. Upon recrystallization, the strength Properties reverted to those of the virgin austenite, but the ductility did not fully recover until the annealing temperature was further raised to dissipate the carbon segregation at the grain boundaries. The transformation of reversed austenite to produce second-generation martensite resulted in an unusually imperfect structure, thereby leaditg to additional strengthening. Horlleuer, the martensitic phase was much less responsive in this respect than was the austenite. MOST martensitic transformations are capable of undergoing a reverse transformation back to the austenitic phase on heating.&apos; This reaction, like the direct transformation to martensite on cooling, is usually athermal. In analogy with the Ms andMf temperatures for the martensitic transformation (where M, > Mf), the reverse transformation is characterized by the As andAf temperatures (where As<Af). It is well-known that the finish (Af) of the martensite-to-austenite reaction on heating may occur at a temperature where austenite is not stable relative to other phases in the equilibrium diagram.&apos; Reverse martensitic transformations have been found to influence the properties of the parent austenitic phase in a number of ferrous alloys. The austenite thus produced after one or more reversals is significantly altered in strength, microstruc-ture, diffusivity, and annealing characteristics compared to well-annealed, virgin austenite. The first detailed observations of such phenomena were made by Wasserman3 on an Fe-30 wt pct alloy. He found that the reversed austenite (i.e., austenite formed by the reverse martensitic transformation) was much stronger than the original austenite, and the second-generation martensite (i.e., martensite produced from the reversed austenite) was somewhat stronger than the first-generation martensite. On heating the reversed austenite, recrystallization occurred in a manner similar to that of a cold-worked metal; the Laue spots sharpened and the strength decreased.4 In recent years, Russian workers have shown considerable interest in these reverse martensitic transformations. Most of such investigations5-10 have been concerned with the stabilization of reversed austenite relative to subsequent martensitic transformation, and because of its unusual nature, this phenomenon will be discussed in detail elsewhere." On the other hand, the annealing behavior of reversed austenite and the attendant variation in properties have received little attention beyond the experiments of Wasserman.3,4 Gridnev eta1.,8 in one of the few such studies. followed the hardness change of reversed austenite as a function of time at three annealing temperatures. The marked strengthening of austenite achieved by the reverse martensitic transformation has been referred to as "transformation strengthening" by Wasserman3,4 and as "phase hardening" by Malyshev et a1.7,9,10 to differentiate it from hardening produced by cold working. Both groups of investigators noted that further strengthening of the austenite could be attained by repeated or cyclic transformations, but the first cycle resulted in the most pronounced effect. Evidence of the altered microstructure of reversed austenite has been reported by Maximova and Nikonorova6 and by Edmonson and KO.12 The former found that reversed austenite was much more sensitive to etching than the original austenite, and the latter authors observed a (&apos;ghost" structure resembling martensite in certain areas of the reversed austenite. Enhancement of the self-diffusion rate in reversed

Jan 1, 1962

By Edward C. Mack, Ronald G. Stovash

INTRODUCTION Ronald G. Stovash General Superintendent Consolidation Coal Company Shoemaker Mine Moundsville, West Virginia Consolidation Coal Company&apos;s Shoemaker Mine is located in West Virginia&apos;s Northern panhandle near Wheeling, adjacent to the Ohio River. Steam coal is mined from the Pittsburgh #8 seam which averages 65 in. in thickness. The 10 in. of draw rock directly above the coal is taken on advancement, but remains when longwalled. The top consists of up to 12 in. of lower quality coal, and immediately over that, up to 10 ft of multi layered shales, coal, and bone. The cover ranges from 300 to 800 ft of shales and limestone. Two longwalls operate in the mine. The first longwall started in April 1975 and is retreating its eighth panel. This wall was the first to use shield supports in the United States. The second longwall started in September 1979 and is currently retreating its first 7,000 ft panel.

Jan 1, 1981

By Fred P. Peters

T. D. Yensen.*—As my information is of a negative nature, I think it belongs under this paper. We are particularly interested in magnetic materials and we would like very much on occasions to make use of powder metallurgy. We have tried repeatedly to use powder metallurgy in preparing our nickel alloys but always. with negative results; that is, we cannot get as good magnetic properties by powder metallurgy as we can by starting with a molten material. We have tried by all possible means to make materials&apos; like 50 per cent iron-nickel alloys by powder metallurgy. The compacts can be regularly lorged and rolled but no matter what we do in the way of annealing, the magnetic properties come out very much poorer than if we start with molten material. F. V. Lenel. †—I want to mention one characteristic of articles made from metal powders which distinguishes them from die castings; that is, their wear resistance. Die castings usually are made from zinc or aluminum alloys and a few copper-zinc alloys; all of them are comparatively soft and not very wear resistant. I know of a number of cases where powder metallurgy rather than the die-casting method was used for producing a certain part because higher wear resistance was needed than could be attained in die castings. A, J. LanghammeR.*—The subject of powder metallurgy is somewhat difficult to discuss, and portray, in the time that his been allotted. Most of you would rightly be bored if we went into details. However, I will cite one incident that possibly will help illustrate some of the potentials. Last summer I was in Washington and met Navy officials for the purpose of studying the possibility of making a certain part by powder metallurgy. The part is highly intricate and I happened to remark that the material cost would be high; that is, the cost on one raw material. Promptly a high-ranking Navy officer said: "Mr. Langhammer, if you must pay x dollars a pound for the raw material, but achieve the desired results, the cost of the finished part would still be low."

Jan 1, 1945

By Hagh H. Bein

MOST mining engineers and geologists realize the value of photographs in their professional work. Members of each group use photographs to illustrate their reports, and articles and photographs, when available, will often save many words of written text in explaining some point or in proving some pet theory. No one hesitates to take aboveground pictures but many rarely take their cameras underground. However, underground photography, too, is really simple. I do not believe that anything new is offered here and the procedures given are merely a compilation of various methods I have tried and used, with some success, over the past six or seven years. The article will deal with photographs to be taken in metal mines, but only in those where no gas hazard exists, with resultant danger of explosions and fire. Some mining company geologists consider the camera a necessary part of their equipment and carry one on their daily trips to the various parts of the mine under their observation. I know of one company whose files of geologic sketches of heading, backs. and veins are supplemented by actual photographs so that a nice geologic picture

Jan 1, 1945

By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd&apos;s Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco&apos;s experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco&apos;s research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco&apos;s strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco&apos;s financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960&apos;s very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo&apos;s Project Development Study was completed. in January 1972. Based upon Toyo&apos;s cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo&apos;s cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco&apos;s planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950&apos;s and 1960&apos;s. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985