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By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985

By W. Rostoker, R. P. Elliott, B. W. Levincer

Phase equilibria in the Ti-Cr-Mo system have been investigated for alloys containing 100 to 40 pct Ti in the temperature range 550° to 1300°C. Five experimental isothermal sections and a surface of incipient melting are presented in addition to a summary projection of the space. Seven vertical sections have been constructed from the isothermal sections. A STUDY of the system Ti-Cr-Mo was undertaken as part of a program sponsored by Watertown Arsenal toward the development of titanium-base phase equilibrium diagrams of potential technical importance to alloy development. The scope of the investigation included the composition range contained by the titanium corner and the line of 64 pct Ti (all compositions are by weight) and the temperature range 550" to 1100°C. A surface of incipient melting was constructed from measurements on a large number of alloys. The system Ti-Cr has been established.&apos;-? The phase diagram is characterized by a wide miscibility field of the solid solution at elevated temperatures and a eutectoid reaction of the type: (15 pct Cr) + TiCr, (685C). The a solid solution has a very limited capacity for solution of chromium (< 0.5 pct Cr). The intermediate phase TiCr2 has at best a very narrow composition range. It has been shown that two allotropic modifications of this phase exist. However, this behavior does not appear to be perceptibly reflected in the form of phase boundaries of the type + TiCr,. In the system Ti-Mo,9-10 the phase is stabilized to successively lower temperatures with increasing molybdenum content. There are no known intermediate phases. The a solid solution is limited to less than 0.5 pct Mo. Because of the very extensive range of the phase, the ternary system was ideally suited to the determination of the phase boundaries by the parametric method of Andersen and Jette." A parametric surface was constructed to provide the necessary basis for the application of this method. Preparation and Treatment of Alloys More than 60 alloy compositions were prepared for the study of this system. Alloy buttons of 10 grams were arc-melted in a nonconsumable electrode furnace using inert atmosphere protection and a water-cooled copper crucible. The construction and operation of this type of melting unit have been adequately described elsewhere.&apos;&apos; To insure complete solution of alloy additions, the buttons were remelted alternately on top or bottom as many as five times. This was accomplished by a suitable mechanism for "flipping" over the ingots. Iodide titanium (99.97 pct Ti) was used as the alloy base. An especially high quality chromium (99.9 pct Cr) was obtained from the National Research Corp. Molybdenum sheet (0.005 in.) of 99.9 pct purity was used.

Jan 1, 1954

By Charles H. Morgan

Jan 1, 1905

By F. G. Tryon, F. E. Berquist

Our task is to make a prospecting trip over the whole field of mineral economics which other lectures of this series will explore in detail. The old timers who really understand mining warn us that its economic aspects are often neglected, and this we find to be true. We shall try to show that mineral economics deserves recognition as a separate branch of economic science with urgent and distinctive problems of its own; that to cultivate it requires a fusing of the viewpoint of economics with that of geology and engineering; and that the help of both economists and technical men is needed in exploring its problems and in training workers in the field. To save time, we shall pass over the familiar subjects of production, consumption, and distribution which bulk as large in the market analysis of the minerals as they do in other commodities. The existence of these problems may be taken for granted and attention centered rather upon those that differentiate mining from other branches of industry. What then is the case for an economics of minerals? Why set up a new compartment in a branch of knowledge that is already well subdivided? Do not the established principles of economic theory apply here as elsewhere? In pleading for recognition of mineral economics one often finds that

Jan 1, 1932

By Waldemar Lingren

CONTENTS. PART I.-GENERAL FEATURES. [ ]

Jan 1, 1902

By S. L. Hoyt

IN technological studies on steel considerable emphasis has been placed on the identification of the foreign inclusions, testimony of which is adequately given in the metallographic literature covering methods for their identification. The outstanding accomplishment in this field is the scheme devised by Campbell, Comstock and Wohrman for identi-fying various oxides, sulfides, silicates and other constituents by syste-matic etching tests and microscopic examination.1 The time involved in carrying out this procedure has led to attempts to secure quicker methods, or at least to shorten the time required to secure essential information. An example of this is the use of dark field illumination, but when this was tried out by the authors it was found that cavities and pits on the polished surface appeared bright on a dark field and could not be distinguished from small glassy inclusions. Still another means is the Leitz Ultropak, an instrument equipped with optical units for the illumination of the specimen by reflected light to secure an effect similar to dark field illumination. The structures are made visible in exceedingly sharp details by utilizing the inherent properties of the samples, such as refractive index, absorption coefficients and reflection powers. We have had no experience, with the Ultropak, but a recent paper by Benedicks and Löfquist3 describes methods for

Jan 1, 1934

By A. Eilers

The use of the bag-house for filtering out fumes produced in certain metallurgical operations is not new in America. There are no patents in force at this time, to my knowledge, which might hinder such use. Up to about 25 years ago the bag-house was only employed in connection with either zinc-works, which produced the oxides, to be sold for paint, or as an auxiliary in extracting lead from high-grade oxidized ores and from galena-concentrates in the Missouri and neighboring lead-regions; this work being then done in the Scotch or American hearths and in very low slag-furnaces, in all of which was produced an excessive amount of oxides which were also finally sold as paints. The literature1 on the above is abundant in text-books and periodical publications. The first large bag-house to be used permanently in connection with lead blast-furnaces was erected, as far as I am aware, about 1887 at the Globe smelting Co.&apos;s works at Denver, Colo., under the Lewis-Bartlett patents. The brick flue, running from the blast-furnaces to the bag-house, was only a few

Jan 1, 1913

By George Langford

THE McIntyre mine is in the Pearl Lake section of the Porcupine gold area. The rocks are Keewatin lavas intruded by quartz porphyries and albitite dikes of Algoman age. Gold-bearing quartz veins are found in the Keewatin rocks near the porphyry stocks. The whole area has been highly compressed by forces acting along a N. 20°W. line. These forces folded the Keewatin rocks before the intrusion of the Algoman rocks, and later schisted both the Keewatin and Algoman rocks. Vein fractures were developed after the folding but before the development of the schist by the compres-sive forces being locally broken up into couples. These couples were set up by the differential resistance to deformation of porphyries and basalts, and also by the competency of the dacites and incompetency of the tuffs and fragmental rocks. During the important period of vein formation, two zones were developed-an inner productive zone in which the quartz veins are ankerite-bearing and an outer barren zone in which the quartz veins are calcite-bearing. The vein solutions originated in the same magma that supplied the albitite dikes.

Jan 1, 1938

By Walter J. Johnson

The coals in northern Wyoming and Montana are free-burning and non-caking and range from lignite to bituminous C in rank. Strip and underground mining are employed to supply railroad, utility, industrial, and domestic fuel. The market area includes Iowa, Nebraska, Minnesota, North and South Dakotas, Wyoming, Montana, the Pacific Northwest, and western Canada. THE larger producing coal mines in northern Wyoming are located in the Powder River Basin lying between the Black Hills region of South Dakota, eastern Wyoming, and the Big Horn Mountains in north central Wyoming, see Fig. 1. The mines are located particularly in the area along the route of the Chicago, Burlington & Quincy Railroad from Gillette, Wyo., to a point approximately 15 miles northeast of Sheridan, Wyo. Fig. 2 is a graph of coal production in the state of Wyoming from 1918 to 1951. Across the Big Horn Mountains lies the Big Horn Basin, situated between the Big Horn Mountains and the Rocky Mountains proper. Mining in the Big Horn Basin is almost entirely confined to a small area known as the Gebo Field, near the town of Kirby, which is located on the Chicago, Burlington & Quincy Railroad. This paper will describe present operating areas, making only brief reference to the history of mining and marketing primarily because of the large area to be discussed. The coal beds presently mined in the Powder River Basin are all of Tertiary age and are of Fort Union and Wasatch formations of Paleocene and Eocene ages, see Fig. 3. The Fort Union formation, consisting of 2000 to 3200 ft of alternate sandstone, shale, and coal, is divided from oldest to youngest into the Tullock, Lebo Shale, and Tongue River members. Most of the mineable coal is in the Tongue River member, which is 500 to 800 ft thick. The Carney coal bed, varying from 7 to 20 ft in thickness, is considered the base of the Tongue River member. About 85 ft above the Carney is the Monarch bed, ranging from 18 to 42 ft in thickness. At approximately 210 ft above the Monarch is what is locally known in the Sheridan district as Dietz No. 3 bed, which varies from 12 to 30 ft in thickness. One hundred feet above the Dietz No. 3 is Dietz No. 2 bed, which is 7 to 12 ft thick. At about 100 ft above the Dietz No. 2 is Dietz No. 1 bed, 7 to 15 feet in thickness. Two hundred and fifteen feet above Dietz No. 1 is the Smith bed, approximately 5 ft thick. One hundred twenty-five feet above the Smith is the Roland bed, which is estimated to be approximately 13 ft thick. The Roland bed is considered the base of the Wasatch formation, which in the Powder River Basin is 1000 to 3500 ft thick and is composed largely of shale, sandstone, and coal. The foregoing measures are the only ones above the Tongue River member that have been mined in the Sheridan field. To the east of the Sheridan field, particularly in the area of Gillette, the Roland bed is considerably thicker and is considered the thickest and most extensive coal bed in Wyoming, reaching a maximum thickness of 106 ft. From 125 to 225 ft above the Roland lies the Arvada bed, average thickness 9 ft. Three hundred seventy-five to four hundred feet above the Arvada is the Felix bed, which reaches its maximum thickness of 30 ft near Echeta on the Chicago, Burlington & Quincy Railroad. East of the Powder River the bed averages more than 10 ft in thickness, but it thins in a northwesterly direction. The highest mineable coal in the Powder River field is the Healy bed, about 400 ft above the Felix bed and exposed only in the highest parts of the area where much of it has been burned along the outcrop. Where it has not been burned, the thickness at most of the outcrops is 10 to 15 ft.

Jan 1, 1954

By Irwin Remson

Some unique hydrogeologic issues are inherent in the problems of siting, designing and licensing a mined geologic high-level nuclear waste repository. The problems involve hydrogeologically unfamiliar rocks for which little proven technology has been developed, long containment periods, elevated temperatures, and externally-imposed management constraints. In evaluating the existing national program, it should be recognized that hydrogeology is only one aspect of the total nuclear waste disposal problem, that the use of multiple barriers requires that the hydrogeologic system be considered in its entirety as a total system, and that engineering modifications can improve the isolation capabilities of certain barriers. Important research questions involve the mechanics of transport through dense fractured and unfractured rocks, methods for measuring vertical hydraulic conductivity, and a variety of geochemical questions. Current expectations for "high quality data" from either in situ or laboratory testing are unrealistic, and a modified approach to repository hydrogeology is needed. The dilemma is that the hydrogeological characteristics that make a potential host rock more satisfactory for respository siting are the same characteristics that are difficult to characterize and make the particular site more difficult to license. Finally, evaluation of the containment potential of any candidate site will become meaningful only with detailed underground exploration, mapping and testing in the host rock formations at the repository levels.

Jan 1, 1984

By Walter W. Bradley

Mining by hydraulic process of the important gold-bearing gravels of the Sacramento Valley in the basins of the Yuba, Bear and American rivers began in 1853, and continued at an ever-increasing rate for 30 years. In its most active days it reached an annual production of $15,000,000, and averaged $10,000,000 per year over the 30 years. During that period no provisions were made to prevent the debris from being discharged into the water courses, and ultimately large quantities of silt, sand and gravel were washed down to the lower valleys; filling channels, causing overflow of agricultural lands and difficulty in maintaining navigable depths in the Sacramento River. Agitation and suits filed because of these damages finally resulted in the injunction decision of Judge L. B. Sawyer,&apos; in the U.S. Circuit Court, Jan. 23, 1884, which closed down practically all hydraulic mining operations not having means to restrain their debris. In 1893 (approved March 1, 1893), Congress passed the act introduced by Representative Anthony Caminetti, of California, creating the California Debris Commission, composed of three officers assigned from the Engineer Corps of the U.S. Army, and since that time it has been legal and possible within the drainage systems of Sacramento and San Joaquin rivers to conduct hydraulic mining of gold-bearing gravels behind dams built under this commission&apos;s permit and supervision. In the watersheds of the Trinity and Klamath rivers, which flow directly to the Pacific Ocean and do not affect navigation or agriculture, operating permits from the California Debris Commission are not required. There is a measure of restriction there, however, through what is known as the Trinity and Klamath River Fish and Game District. Chap. 215, Stat. 1931, in order to secure relatively clear water for the fishing season, provides that between July 15 and October 15 each year there must not be discharged into these rivers debris that will cause a turbidity greater than a content of 50 parts per million in the

Jan 1, 1937

By J. H. Henderson, H. J. Ledbetter, N. B. Gove, J. D. Griffith

INTRODUCTION The results of a series of laboratory flood tests using liquid Iso-butane to displace refined oils from test cores are pre- ented and interpreted on an empirical bask. The study Revealed the similarity of the miscible liquid displacement to that of the immiscible-fluid displacement mechanism. The efficiency of the iso-butane flood decreased markedly as the oil Viscosity increased. but the effect of injection rate on the effectiveness of the primary production stage was negligible over the range investigated. The presence of free-gas saturation prior. to iso-butane breakthrough increased the volume of iso- Butane required to recover a given percentage of the oil present. Injection of liquid i.e.-butane prior to water follicle sculpted in a marked improvement in oil recovery by the water flood. INTRODUCTION The production of petroleum is often enhanced by the injec-1i1)n of extraneous fluids into the reservoir. It has been suggeited that the injection or cycling of a wet gas or a liquefied petroleum gas would he instrumental in increasing the effic.ienr!; of oil recover! to a greater degree than the commonly injected fluids. dry pas and water. Although instances of injection of light liquid hydrocarbons are not unknown, a systrmatic recording of the result is unavailable and superfi- cially, the practice gives the impression of being economicaIIy unsound. For specific types of displacement, analytic: solutions have been advanced which aid in understanding the physical mechanisms involved. However, there is no generalized theoretical concept which permits adequate prediction of displacement efficiency from a knowledge of readily measured reservoir rock and fluid properties. The Buckley-Leverett approach to oil displacement by an immiscible phase is an admirable analysiy of that type of mechanism. Dykstra and Parsons have introduced a useful concept in their evaluation of the role of the mobility ratio and its merit in rationalizing displacement phenomena. Everett, Gooch and Calhoun3 in their report on the effect of viscosity ratio and miscibility have pointed out the lack of a comprehensive theoretical approach and the desirability of investigating the mechanism of miscible-miscible displacement. In lieu of a well-developed theory concerning miscible-111isci1)le displacement and in view of the scarcity of engineering information on actual LPG injection trials, the limited program of laboratory experimentation described below was undertaken. OBJECTIVES The original broad objectives of the program, to study the oil recovery process using LPG as the displacing phase, defined the direction and scope of the laboratory tests. The specific objective. of the experimentation were to evaluate

Jan 1, 1953

NEW MEMBERS The following list comprises the names of those persons who became members during the period May 10 to June 10, 1915: Members ANDREEN, HARRY MAYO, Millman: and Assayer Thane, Alaska. BANKS, HUBERT RAYMOND, Min. Engr., Mill Staff, Consolidated Arizona Smelting Co., Humboldt, Ariz. BASSETT, ARTHUR F., Min. Engr., Care Consolidated Arizona Smelting Co., Humboldt, Ariz. BLACKNER, LESTER A., Slope Engr.... Care Ray Consolidated Copper Co., Ray, Ariz. BUSHNELL, C. E., Draftsman Butte & Superior Copper Co., Butte, Mont. CAVAGNARO, DAVID AMILE, Min. Engr., Genl. Supt., Wisconsin North Fork GravelMines, Forest, Sierra Co.; Cal. COGHILL, WILLIAM HAKES, Met., Ore Testing Laboratory, 3705 Hueco St., - - El Paso, Tex.

Jan 7, 1915

Jan 1, 1901

By Bradley Stoughton

[Secretary&apos;s Note.—TO avoid repetition of foot-notes, references to authorities are made in this paper by means of figures, referring to a numbered list in the appendix.—J. S. 1 Introduction. This paper gives the results: first,, of a research into the somewhat extensive literature of titanium; and second, of a series of original tests upon the effect of titanium on iron castr ings. New investigations have also been made upon the effect of titanium on steel, but I hope to treat this subject in an independent paper at some later date, and, therefore, will not discuss the experiments in detail here. The combined results of this study, which extended over a period of more than two years, can be briefly summarized as follows : 1. Steel or cast-iron, in which the titanium is properly proportioned, and which has been properly treated, is improved in strength, toughness, and durability against wear, such &apos;as, for example, the wear of railroad-rails, of steel and chilled-iron rolls, car-wheels, etc. 2. These improvemerits seem to be caused, not so much by the direct effect of titanium on the metal, as by its cleansing influence in removing harmful impurities, such as oxygen and oxides, nitrogen, occluded slags, and perhaps also sulphur. It appears also to reduce segregation, which would contribute to the same end. 3. In order that its effects may be fully realized, the treatment of steel or iron with titanium must be correctly performed. There are a few simple, but essential, details to be observed; if they are neglected, the best results cannot be expected. To illustrate by an example: A series of tests on cast-iron

Jan 1, 1913

NEW MEMBERS The following list comprises the names of those persons Who became members during the period Dec. 10, 1914, to Jan. 10, 1915: Members AGUILAR-REVOREDO, J. F., Min. Engr -Casilla 146, Oruro, Bolivia. BAKER, JOHN M., Min. Engr Baker Mines Co., Cornucopia, Ore. BETTS, ROBERT M., Mgr Cornucopia Mines Co., Cornucopia, Ore. BILLINGS, THOMAS PARRY, Min. Engr., 404 Dooley Block, Salt Lake City, Utah. BLAIR, GEORGE SHEPPARD, Engr. and Assayer, Mariposa Min. & Mill. Co., Hornitos, Cal. BOLE, JOHN W., Supt ...Siskiyou Dredging Co., Fort Jones, Siskiyou Co., Cal. BOWMAN, REGINALD G., Statistician, International Smelting Co., 621 Kearns Bldg., Salt Lake City, Utah.

Jan 2, 1915

Jan 1, 1900

By C. W. Mallett

The distribution and properties of interseam and overburden rocks in coal mines is largely controlled by conditions at the time of their original deposition. Within the developed areas of the Bowen Basin, depositional environments range from fluvial through upper and lower detaic, to marginal marine and intertidal facies. Each environment has a characteristic association of lithologies with specific range of properties, and each lithology has a characteristic geometry. Fragmentation problems are associated with ancient sand channel systems, where the difficulties encountered depend on the dimension and shape of channels, their continuity, orientation to mining face and associated sediment bodies formed as levees or interdistributary muds. Stability problems in spoil, pit floor and highwalls are usually associated with mudstones which contain swelling clays derived from the original Permian volcanic source. This clay problem is aggravated by deep Tertiary weathering. Case studies are presented of detailed analyses and prediction of geomechanical properties on a mine site scale. These are used in investigating or forecasting fragmentation and stability hazards. The studies incorporate detailed field mapping, bore log data and computer data processing. They allow the development of detailed depositional models for specific interseam intervals within mines. As areas of depositional environment are identified they allow the construction of maps of similar mining conditions and the determination of the most suitable mining techniques.

Jan 1, 1983

CHICAGO SECTION CHAS. H. MACDOWELL, Chairman, LUTHER V. RICE, Vice-Chairman, HENRY W. NICHOLS, Secretary-Treasurer, GEO. P. HULST, ALEX. K. HAMILTON, FREDERICK T. SNYDER, HENRY P. HOWLAND. The Field Meeting of the Chicago Section proved to be the most enjoyable meeting ever held by the Section. It took the form of a visit to the Northern Indiana Industrial District where the day was spent inspecting metallurgical plants in Indiana Harbor and East Chicago and in amusement at the Hammond Country Club. The weather was perfect and about 50 members and ladies attended the meeting. An inspection of the plant of the Inland Steel Co. occupied the morning. The plant was decorated in honor of the occasion and the company provided attractive souvenirs. It was noticed here that many of the ladies displayed an interest in the inspection and an understanding of the processes that would not have shamed professional metallurgists. While the members of the Section seemed to be most interested in the by-product coke ovens and the by-product recovery plant, the ladies enjoyed especially watching the snake-like antics of the red-hot rods in the wire mill. Leaving the steel plant, the Section enjoyed a ride through the district by automobile and arrived at the Hammond Country Club in time for lunch. In the afternoon some of the members inspected the plant of the International Lead Refining Co., at East Chicago, while the rest spent the time at the Country Club in golf, tennis, trap shooting, bridge and other amusements. During the dinner at the Hammond Country Club an informally organized male quartette led the singing in real college boy style. In the evening, E. E. Billow talked on the use of oil burners in metallurgical furnaces, Mr. MacDowell told of the present status of the Potash Industry and the Secretary told of some of the happenings at the Arizona Meeting. HENRY W. NICHOLS, Secretary.

Jan 12, 1916

By A. T. Tye

REGARDING the results of preferential flotation at Cananea, Weinig has stated that "The concentrating mill of the Cananea Consolidated Copper Company at Cananea, Mexico, furnishes an excellent example of modern flotation practice. The complete figures are given because they present so forcibly the advantages of modern selective flotation."&apos; L. 0. Howard notes that "Perhaps the outstanding example so far published of improvements in results through the use of selective flotation is that at Cananea, Mexico."2 The following notes indicate the conditions under which the results were obtained at Cananea; also the effect of preferential flotation at the concentrator and at the smelter. In the majority of cases the full benefit of selective flotation is not fully realized, as the concentrates are shipped from the mill to smelters owned by other companies. The saving made at a certain concentrator by this method of flotation may be well understood but the saving resulting at the smelter from the results of preferential flotation at the mill is not so apparent, as the data are contained in the smelting records of some other company. Even at the smelter the great gains following preferential flotation may not be noted, as a variety of ores and concentrates from various sources are received and the difference from the changed concentrator operations of a certain mill may be obscured. As noted by Professor Weinig and Professor Howard, the results obtained at Cananea brought about a veritable metallurgical revolution at the smelter.

Jan 1, 1927