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(Under this heading will be published notes sent to the Secretary of the Institute by members or other persons introduced by members.) Experienced mining. engineer, Columbia School of Mines graduate, practical experience in drifting, shaft sinking and development work, also in mining, operating and equipping iron, copper, and zinc properties. Married, age 32, available at once. Open for position as superintendent or assistant. No. 462. Member, age 33, married, desires position as mining engineer or engineering executive.- Twelve years experience as mining engineer, geologist, and chief engineer of iron and copper properties. Experience in United States, Mexico and South America. Fluent Spanish. Technical graduate. Minimum salary $3000. No. 466. Member, technical, general superintendent and mill superintendent: Well experienced in latest methods of ore reduction, especially on copper and complex ores. Draft exempt. Not less than $250 per month considered. No. 469. Consulting mining geologist, member of Geological Society of America and A. I. M. E., Professor of Geology and Mineralogy, Lawrence College, desires temporary position during summer in mine surveying, mining methods, expert mine valuation or any exploration work or mine development. Applicant has had nearly three years' experience in gold mining in Mexico and many years professional mine examination work in all regions of Western U. S. Terms reasonable. No. 470. Member, mining engineer, age 46, desires engagement as manager of mining properties, coal or metal mines. Education and 25 years experience in all branches of mining. Have been successful with labor in the management of large properties. No. 471.

Jan 8, 1918

Discussion of the paper of CHESTER W. WASHBURNE, presented at the New York meeting, February, 1915, and printed in Bulletin No. 9S, February, 1915, pp. 469 to 471. ROSWELL H. JOHNSON, Pittsburgh, Pa.-I hope that this contribution of Mr. Washburne's is only the first of a series dealing more in detail with the very important problems involved. Pores are of two kinds: Those which are entirely inclosed, so that they do not belong to a system of communicating pores tapped by the bore hole or shot hole; second, those which do so communicate. Porosity, of course, includes both. But since pores of the first class are valueless to us, we should confine our attention to the latter, for which I propose the term "effective porosity." This should be measured by the Wisconsin method, based on the quantity of fluid that can be introduced by the aid of vacuum. Another factor which requires attention in this connection is the dependence of the extractability upon the rate of loss of pressure, as affected by the number of holes, and the rapidity of their completion, the existence of uncontrolled wells, the use by other operators of vacuum pumps upon the casing head, the exhaustion of a gas field in the same reservoir prior to the discovery of the oil, etc. The extractability depends upon the pressure available for the exclusion of the oil from the reservoir into the hole. The action of gravity in bringing oil into the hole is relatively small where the pores are very small, as is so frequently the case.

Jan 5, 1915

By E. C. Harder

SINCE early in 1916, when it became apparent that the steel industry of the United States could not depend, for the duration of the war, on several important foreign sources of manganese and might have to depend entirely on domestic ores, the U. S. Geological Survey, with the assistance f several cooperating organizations, has made a comprehensive investigation of domestic manganese resources. The work has included field studies in a number of states as well as annual, quarterly, and monthly canvasses among operators concerning current and future production. In order that the interested public might have access to the important results of the studies, preliminary reports concerning the field work as well as periodic summaries of production were issued as promptly as possible. Although large deposits of rich manganese oxides appear to be lacking in the United States, small deposits of high-grade material are numerous and widely distributed and large low-grade deposits are found in several places. The principal districts in which high-grade manganese ore is mined, in the order of their importance as recent sources of production, are: Philipsburg district, Mont.; Butte district, Mont.; Southern Nevada region; Central California region; Bisbee district, Ariz.; Appalachian region of Virginia; Batesville district, Ark.; Tintic district, Utah; and Cartersville district, Ga. Scattered deposits of some importance are found in western Arizona, southern California, eastern Tennessee, southern Oregon, and central Utah. The formation of many manganese oxide deposits appears to be related to the physiographic histories of the regions in which they occur.

Jan 5, 1919

By H. C. Lay

No one who knows the conditions of altitude, difficulty of access, shortness of working-season, etc., under which the work of the U. S. Geological Survey in the Rocky Mountains is carried on, can fail to be impressed with the magnitude and accuracy of the results obtained. Yet, in the necessarily brief time given to any one district, maily minor features must remain unregistered. The purpose of this paper is merely to place on record observations, made during nearly eighteen years, of local phenomena in themselves unimportant, which, however, if collated with similar memoranda from neighboring regions, may lead to something of value. The Telluride quadrangle in southwest Colorado is a tract of fifteen geographical minutes on a side, the NW. corner of which is in Long. 108º W., Lat. 38º N. Topographically it is essentially a lofty horseshoe, some of the peaks of which rise more than 14,000 ft. above tide, the interior (with an average altitude of 9000 ft.) being the eastern edge of the rolling Colorado-Utah plateau, and, in its turn, deeply cut by the canons of the San Miguel river and its tributaries. The range-summits are mainly igneous rocks, partly intrusive (such as massive " stocks" and laccolites, left bare by superior erosion), but mostly bedded volcanics of an average vertical thickness of 3500 ft., which change with changing height from andesite to rhyolite. The lowest series of these volcanic rocks, known as the San Juan formation, lies conformably upon the sedimentary San Miguel conglomerate, which dips gently east., and is attributed provisionally to the

Jan 1, 1902

By AIME AIME

CHARLES WASHINGTON MERRILL, the second to be honored by the award of the James Douglas gold medal, throughout his entire professional career has been identified with the cyanide method of extracting gold from ore. To his efforts this branch of the metallurgical industry owes a large measure of its success in continuing to treat some gold ores profitably, in spite of economic adversities. Mr. Merrill was born at Concord, N. H., Dec. 21, 1869, and received the degree of B. S. from the School of Mines at the University of California in 1891. Among his first professional connections was the Standard Mining Co., at Bodie, Cal., followed by a short engagement at Harqua Hala, Ariz. From 1895 to 1899 he was connected with the Montana Mining Co., at Marysvale, Mont., and then followed his nine years of fruitful association with the Homestake Mining Co. In 1909, the Merrill Co. was formed, to exploit more than a score of patents granted to Mr. Merrill, covering various phases of the cyanide process and numerous pieces of equipment for its operation; among the most noteworthy of these innovations were the Merrill filter-press, and the use of zinc dust as a precipitant. The Merrill Co. has a long record of successful accomplishments in its chosen field, to mention only the plants at the Dome mines of Ontario and at the Sta. Gertrudis mines of Mexico as among the more recent. Mr. Merrill is president also of the Western Ore Purchasing Co.; and a director in two gold dredging companies of California.

Jan 1, 1924

By H. C. Fiedler

X HE development of the cube-on edge secondary re-crystallization texture in Si-Fe strip requires that normal grain growth be restrained. It has been shown that the degree of restraint and hence the completeness of secondary recrystallization depends upon the size and number of second-phase particles, which in turn is dependent upon the prior processing history.1y2 The purpose of this note is to show that, for heats in which manganese sulfide particles are providing the restraint to grain growth, the choice of hot rolling temperature depends upon the manganese content. The making and processing of the heats to the final gage of 0.012 in. has been described.3 The compositions are given in Table I. Apparent in Fig. 1 is the decrease in the ability of strips hot-rolled from 1175°C to undergo secondary recrystallization as the manganese content increases. It has been shown that 1175°C is below the solubility temperature of 0.014 pet S in even the 0.038 pct Mn alloy: and the observed behavior is attributed to an increasing fraction of the sulfur forming large manganese sulfide particles at the heating temperature for hot rolling. This fraction of the sulfur is thus unavailable to subsequently form the small, uniformly dispersed particles which are needed to restrain normal grain growth. Since the sulfur is completely in solution at 1325°C,3 strips from all three alloys show strong secondary recrystallization behavior when hot-rolled from that temperature.

Jan 1, 1969

THE following employment items are made available to AIME on a non-profit basis by the Engineering Societies Personnel Service, Inc., operating in cooperation with the Four Founder Societies. Local offices of the Personnel Service are at 8 W. 40th St., New York 18; 100 Farnswarth Ave., Detroit; 57 Past St., San-Francisco; 84 E. Randalph St., Chicago 1. Applicants should address all mail to the proper key numbers in care of the New York Office and include 6c in stamps far forwarding and returning application. The applicant agrees, if placed in a position by means of the Service, to pay the placement fee listed by the Service. AIME members may secure a weekly bulletin of positions available far $3.50 a quarter, $12 a year. MEN AVAILABLE Graduate Mining Engineer, 38; married, two children, Dutch nationality. Experience bauxite open-pit dragline, stripping and mining, nickel silicateous ore exploration, tin lode mining and dredging, ore dressing research, administrative. work, all in responsible positions. Read, write and/or speak seven languages. Desires responsible position. Presently located Netherlands. M-655. Mining Geologist, 35, married, 3 children, Canadian citizen. Eight years' experience Canadian gold mines as geologist, chief engineer, shift boss, 3 years in western U. S. as surveyor, junior geologist, etc. Desires position of responsibility. Prefer western United States. M-656-478-E-3-San Francisco. Mining Engineer, 30 years' experience open-pit and underground coal and iron mines. Held positions engineer to manager. Desire position of responsibility in foreign field. M-659.

Jan 1, 1952

By Clarence P. Linville

In an article published in the Iron Trade Review,' I gave a convenient arrangement for the installation of wet and dry bulb thermometers for use in making moisture determinations in the air being blown into a blast furnace, and also gave a chart for use in obtaining moisture values from the thermometer readings. The data from which this chart was prepared were obtained from the tables in use by the U. S. Weather Bureau.2 The work of Carrier3 has shown that these tables are somewhat in error. He has recalculated the values for moisture as referred to wet and dry bulb thermometer readings, and he has prepared a psychrometric chart from the values thus obtained. This work has placed the subject of psychrometry upon a correct scientific basis. I think it is proper that we should recognize the importance of his work and give him credit for one of the most interesting and valuable researches that have been published in recent years. Blast-furnace men are not ready to use, as he suggests14 a value expressed in grains of water accompanying a pound of dry air. However convenient this may be for heating and ventilating work and other engineering problems, there are several reasons for preferring the use of a value expressed in grains of water in a cubic foot of mixed air and water vapor, in connection with combustion phenomena and the effects of moisture on blast-furnace operation. Previous papers presented to the Institute have used such values and we have

Jan 1, 1914

In 1910, he was with the Hidalgo Guadalupe, Pachuca, Mexico, and in 1911 was engineer with the Gualcola Mines Co., at Tuquerres, Colombia. In 1913, he returned to the Sout.hwest, and was employed for that yea.r by the Inspiration Cons. Copper Co. at Miami, and in the middle of the following year he became engineer with the Detroit Copper Co., at Morenci. In the autumn of 1914, Mr. Reece, stirred by his English blood, resolved to return to England to take part in the war. At this time he wrote "I think it will be better for me to resign my membership. If I come through all right, I will apply for re-election." The Institute, however, instead of accepting Mr. Reece's resignation, voted him an indefinite leave of absence, and this precedent soon crystallized into the regular procedure, now in force, of remitting the dues of members in active service. On Dec. 17, 1914, he wrote from Montreal that he fully expected to go over shortly in the second contingent from Canada, with Borden's Armored Brigade, operating with armored motor cars. As he said "this will be active enough service to satisfy any enthusiast, as they are used generally for reconnaissance duty." Soren Ringlund Soren Ringlund died suddenly on July 24, 1918, at Fort Logan, Colo., where he was engaged in service with the Medical Department of the U. S. Army. Mr. Ringlund was born in Denmark in 1875. He came to the United States in 1902, and became a citizen in 1908. He graduated as

Jan 1, 1920

By P. J. Conroy, E. A. Curth

INTRODUCTION In June 1962, the first attempt at longwall mining in Illinois was initiated by Old Ben Coal Company in their No. 21 Mine. Longwalling was continued intermittently using various supports until April 1970. During this period, longwall mining techniques were used on separate occasions at six faces within Mine No. 21. However, due to various problems that developed at each location the faces were eventually terminated. The most significant problems concerned the support systems and roof conditions that were present in the mine during each attempt. Between 1965 and 1972, similar conditions were met by Freeman Coal mining Company during four attempts at longwall mining in their Orient No. 5 and Orient No. 6 mines. In 1975, the U.S. Bureau of Mines and Old Ben Coal Company entered into a cost-sharing agreement to demonstrate the application of longwall mining in Illinois. The first phase of the demonstration was to conduct a premining investigation to review previous attempts at longwall mining, perform rock mechanics tests, and establish support requirements based on the lnvestigation results. The information obtained during the demonstration at Old Ben's No. 24 has been utilized to optimize subsequent face equipment and panel geometry. Mining of the first panel began in September 1976 and was successfully completed in May 1977, and two additional panels were mined under the cooperative agreement. Currently, Old Ben Coal Company is the only longwall mining operator in Illinois. In addition to the face in Mine No. 24, five longwall faces are being operated in four other mines.

Jan 1, 1981

By C. E. Shoenfelt

The deepening of the General Crude Oil Company's No. 1 Meyers, NE. NE. SE. of sec. 22, 24S., 36E., in the Cooper area of Lea County, in April, 1934, resulted in the discovery of an oil field of major importance. The discovery well is an old well drilled by Cranfill $ Reynolds and completed in July, 1929, in limestone at 3438 ft. for an initial production of 90,000,000 cu. ft. (estimated) of 'gas. Deepening operations were started early in April, 1934, and cores were taken from the old total depth of 3438 to 3508 ft. A Haliburton test taken through the drill stem at 3439 to 3460 ft. showed 50,000,000 cu. ft. of gas with an increase of 5,000,000 cu. ft. between 3461 and 3474 ft. When completed the well tested 12,000,000 cu. ft. of gas and 5000 bbl. of oil at 3474-3508 feet. The new oil field—the result of this discovery—is between the Eunice and the Jal fields, closer to the productive area of Jal than to that of Eunice but far enough away from both to be considered a separate area. Eventually, all of these pools may be joined together by productive oil wells to form a single unit of large size. They lie in a general northwest-southeast alignment and the intervening areas have not been condemned by dry holes. In the drilling campaign that followed this discovery, 24 wells were drilled, of which 23 were oil wells with combined initial productions of

Jan 1, 1935

SOUTHERN CALIFORNIA SECTION Executive Committee SEELEY W. MUDD, Chairman. C. COLCOCK JONES, Vice-Chairman. FREDERICK J. H. MERRILL, Secretary-Treasurer, 631 Higgins. Bldg., Los Angeles, Cal. RALPH ARNOLD A. B. CARPENTER A. B. W. HODGES WILLIAM F. STAUNTON The third meeting of this winter season tool: place in a private dining room of the Sierra Madre Club in Los Angeles on Feb. 1, 1916, at 6:30 p.m., 22 members and guests being present. In the absence of the Chairman, S. W. Mudd, the Vice-Chairman, C. Colcock Jones, presided. After an enjoyable dinner the meeting was called to order, and the first paper by Ralph Arnold on Conservation of Oil and Gas in the Americas was read by the Secretary. W. F. Staunton then read an important paper on The Influence of California Oil on the Mining Industry of the West. In this he touched upon the uses of oil as a fuel for generating power, especially in connection with the Diesel engine. This paper was discussed it some length by J. F. Mitchell-Roberts, R. B. Moran, F. H. Asbury and L. D. Godshall. The Chair then introduced Robert B. Moran of the California State Mining Bureau, Deputy Supervisor of Gas and Oil, for the' Los Angeles . District, who addressed the meeting on the work of his department. The meeting concluded with A. B. Carpenter's reading of a paper on The California Gasoline Industry by W. R.. Hamilton, Manager of the Ventura Refining Co. F. J. H. MERRILL, Secretary. ,

Jan 4, 1916

National Minerals Advisory Council A meeting of the National Minerals Advisory Council on August 3rd in Washington, D. C., indicated the vitally important part that the mining industry is to play in the mobilization program. Director James Boyd of the Bureau of Mines told the Council that the Department of the Interior would review the recommendations of all the Council's commodity committees with regard for mobilization planning in the light of the changed international picture. The Council was requested to reactivate its commodity committees and have them gather all available data on supplies, their sources and availability and present and potential production of the minerals and metals represented on each committee. Data on labor, machinery, transportation, automotive and stationary equipment, power, fuel, lumber, water supply are a few of the important items called for in the reports, which are to be presented at a meeting of the Council on September 1 at Salt Lake City. The material in the reports will become the basis for discussing metal and mineral requirements at that time. Discussion at the meeting bared several $64 questions, probably the most important of which are the following: 1. Which of the war-essential metals and minerals and in what quantities can we reasonably expect to get them from abroad under threat of submarines? 2. How are we going to meet the manpower problem posed by (a) migration of labor from mining to manufacturing since the end of World War II and (b) the draft and the calling up of reservists? Opinion was expressed by industry spokesman at the meeting that the function of complying with mobilization requirements be left to those in the industry itself; that is, those having the "know how." This view contended that any administrating governmental agency should be kept as small and streamlined as possible. There was general sentiment against the reactivation of the wartime Premium Price Plan or other bonus plans as a stimulus to production. The thought was emphasized that what was needed was a change in the basic conditions which have fostered the decline in domestic mining activity in the postwar years. One such condition, long overdue for correction, is the tax structure as it applies to mining enterprises. Many quarters both in industry and in government favor tax relief along the lines suggested in the six tax recommendations by the Council to the Secretary of the Interior last December. The Council adopted a resolution expressing a feeling that the following tax recommendations are still feasible and desirable and will accomplish as much toward increasing exploration for new deposits (thereby subsequently increasing production) as will government loans for exploration: (1) Losses from unprofitable ventures should be allowed corporations, partnerships, or individuals as ordinary deduction against current income. (2) Development costs after discovery should be recognized as operating expenses. (3) Allowance for depletion should be made to the stockholder as well as to the corporation. (4) Income should not be taxed without full allowance for losses of loss years. (5) Adequate allowances for percentage depletion should be made. A discussion of the manpower problem led to the Council's acceptance of a resolution advising that "military authorities should proceed with caution in depriving the mining and metallurgical industry of its manpower." The resolution strongly urged that no personnel "directly engaged in exploration, development, production or supervision (of strategic and critical materials) should be drafted for the armed forces, at least until the anticipated demands upon these producers are clarified." Stockpiles The Munitions Board's "Stockpile Report to the Congress" of July 23, 1950 revealed: (1) The total estimated value of the stockpile objective is $4,051,714,510 at the close of fiscal year 1950. (2) The total value of the stockpile on hand, at the close of fiscal 1950 was $1,556,154,352 or 38.4 pct of the total stockpile objective. An additional $494,948,060 was on order, making a total of 50.6 pct on hand plus the amount on order. (3) Materials obtained for the stockpile by the ECA from January to June 1950 amounted to $13,112,085, while development projects by ECA during this period involved the expenditure of $9,322,000, mainly with counterpart funds. Shortly after the start of the Korean conflict it was felt that Congress ould appropriate greatly increased sums for the purchase of materials for the stockpile. This stimulus to the program may increase the dollar earnings of those European nations that are present or potential contractors in our stockpiling program. Such a development would mean that these nations could add to their gold reserves, thereby stabilizing their respective economies and hastening recovery. This seems to be the picture for the next six months anyway. The "bug" appears when it is realized that the increased threat of total world war actually may retard recovery in Europe as nations on the continent may feel inclined to devote more of their resources to defense programs. Industries Essential to Defense The Department of Commerce in response to a request by the Department of Defense issued on August 3, 1950 a "Tentative List of Essential Activities" as a "guide for calling up for active duty members of the civilian components of the Armed Forces." The list includes the following: Primary Metal Industries. Included herein are establishments engaged in the smelting and refining of ferrous and nonferrous metals from ore, pig, or scrap. Metal Mining. This category includes establishments primarily engaged in mining, developing mines or exploring for metallic minerals (ores). This group includes all ore dressing and beneficiating operations. Anthracite Mining, Bituminous Coal and Lignite Mining, Crude Petroleum and Natural Gas Extraction, Mining and Quarrying of Nonmetallic Minerals, Except Fuels. Challenge to the Mining Industry The source of our country's great strength lies in its capacity to produce. In times of stress such things as national morale and manpower are all-important but without a capable industrial machine we would be helpless. That machine must be fed with minerals and metals in order to generate and maintain momentum sufficient to insure success. Consequences of the lack of adequate supplies of essential metals and minerals to increase and sustain our industrial power are not pleasant to contemplate. It is absolutely imperative that we put forth Herculean effort to guarantee ample supplies of such essential materials as copper, lead, zinc, manganese, antimony, mercury, tungsten, tin, chromite, nickel, cobalt, iron ore and rubber. The mining industry faces a challenge more serious than ever existed before in the history of our country. The industry must be equal to the task.

Jan 9, 1950

By Edgar F. Cruft

INTRODUCTION It is sometimes said that "mines are made, and not found." I rather doubt that the exploration geologist would be overly sympathetic to that statement, and, of course, like most one-liners it is only partly true. Access to different financial markets are important at the mineral prospect stage. The modern mine financier has a much more complex, and interesting, job than the financiers of an earlier era, for example, the Canadian financiers of the 40's and 50's who had one simple set of options; i.e. float a company, promote it, and sell an equity stock issue, and then promote it some more. QUALITIES OF A FINANCIER Because technical people are seldom taught financing in their basic training, and because they are usually not involved in it until at quite a senior level in their careers, the whole field often acquires a certain mystique. The engineering professions have too often believed financing is the province of the accountant or financial executive and just as we in the technical world are often too quick to bristle if the latter try to tread on our domain, the opposite can just as easily be true. Unfortunately, this is another example of a compartmentalized individual, and that is one thing the successful financier cannot be. However, to be a successful financier one does not need extensive training or experience in accounting or finance. In fact it can sometimes be a disadvantage to get too buried in working only from the standpoint of discounted cash-flow analyses, ROI's, etc. It must be stressed, however, that one had better know how these analyses are made, and be knowledgeable in understanding a balance sheet, and have a good understanding of financial terminology. The difference between a simple project-type debt financing with a commercial bank and a more inventive and creative financial package comes from an intuition and an experience relating to risk-reward factors. The most important element is "common-sense", based on knowledge and experience. The goal is structure a financial package that fits the project, and in so doing it is important to recognize that it must fit within the limitations of the group supplying the money. I find insensitivity to recognize these constraints the most common mistake made in the field. Put yourself in the other person's place and understand his sources of funds and financing limitations. The engineer has an advantage in financing, as he or she has (or should have) a better idea than anyone of the value of the product, be it the mine, prospect, or company i.e. the intangible or potential worth which cannot be put on a pro-forma. He also knows, or should know, the risks involved. Two projects might look the same on paper, but a good financier must have a sense of when to take whatever deal he can get, and when to hold out based on his evaluation of future developments. It is essential to have a good sense of commodity values and trends, trends affecting the general economy (money supply, interest rates, effects of energy costs, etc.), and political considerations. He must also have a good understanding of the science and art of taxation as deals can often be financed using the government as a silent and unwitting partner by proper use of the tax laws. WHEN TO SEEK FINANCE The first critical decision to make in financing a mineral prospect is "when". At the exploration level, when it is only a dream in the geologist's eye, the alternatives are more limited than when it is a fully-engineered project. The "when" decision depends on how much in internal funds the company has to play with, and how desirable it is to invite financial participation to spread the risk. Assuming that decision is not taken out of lack of money, no one can categorically say when to do it. There is

Jan 1, 1985

By Wolfgang O. Gluschke

INTRODUCTION Virtually all countries have general legislation covering most aspects of mining and mineral processing, including investment and tax laws, safety and health regulation, and specific rules applying to exploration reporting procedures. Yet most developing countries negotiate individual agreements with foreign investors for major mineral projects, in particular when all or part of the expected output is exported. Such agreements are known under several different names, as for example concession agreement; technical assistance agreement or service contract; management agreement; production sharing contract; joint venture; or contract of work. The objectives and conditions governing such contracts are as diverse as these titles are. While a mining project is only one among a large mumber of similar undertakings in industrial countries, in most developing countries such projects usually have a dominating position within the country's economy. The general legislation is often inadequate and insufficiently detailed to cover all aspects of large projects with extensive foreign inputs and international markets. Therefore, the need for specific arrangements. Specific arrangements may also become necessary due to the complexity of markets for mineral products, the large number of participants - equity partners, suppliers, financial institutions, buyers, etc. - or economic and political conditions in the host country and fiscal regulations in the home country of the investors. Most agreements are concluded between governments, or government agencies, in developing countries and private industry headquartered in developed market economies - Canada and the United States of America in North America, Western European countries, Japan, South Africa and Australia - or, in some instances, with state-owned firms in these countries. There are fewer agreements between developing countries and the centrally planned economy countries - Eastern Europe and the USSR - which cannot be considered here because of absence of adequate information. Agreements can be concluded at any of the different stages from exploration through closing of a mine. While most contracts are negotiated at the time when a potentially viable ore body has been delineated and investigated sufficiently to anticipate a realistic time for commencement of production, other agreements start with "grass-roots" exploration, during operation of a mine, smelter or refinery or, exceptionally, after a temporary shutdown. While several major provisions are included in all types of agreements, others are covered in much more detail (or not at all) in some contracts reflecting the specific work programme of each project. While it is realized that subdivision and classification of complex contractual relations is necessarily arbitrary to a certain extent, such grouping is useful in practical terms, especially for the non-specialist. The following discussion, therefore, will start with a description of the major forms of contractual relation - concession, investment contract, joint venture, management agreement, service and production sharing contracts. Major issues covered in all, or almost all, agreements will then be dealt with. These include stages of development, corporate structure and control, fiscal arrangements, infrastructure development and environmental law, and dispute settlement and renegotiation. FORMS OF CONTRACT RELATIONS There has been marked change in the type of agreement entered into during the 1960s (and before) and the early 1970s and the period thereafter. While straight "concessions" - granting of exclusive rights to foreign investors over a certain deposit or areas with little restriction or well-defined obligations - were the rule during the first half of this century, more complex agreements have evolved since. Some of these cover every conceivable aspect, foreseen or only possible, and define rights and obligations of all partners to the last detail. Over the years, agreements have without doubt become more beneficial for the developing host countries, in part as a result of well-publicized nationalizations, as for example in Chile, and in part due to changed attitudes in all countries

Jan 1, 1985

By Nigel B. Pearson

INTRODUCTION Chingola Division of Nchanga Consolidated Copper Mines Limited is situated in the Copper- belt of Zambia, approximately 30 kilometres south of the border with Zaire. It is the country's leading producer of copper and its principal foreign exchange earner, and has been, in its time, the largest single copper producer in the British Commonwealth and the second largest in the world. There are two 'primary' copper sources at the Division, namely Underground producing approximately 100 000 tonnes of contained copper annually, and the Open Pits, producing approximately 200 000 tonnes annually. Following the commissioning of the Tailings Leach Plant in 1974, treating final tailings, metallurgical recovery increased from approximately 70% to in excess of 80%. Extensive deposits of cobalt are present and following the rise in the market price in 1979 and 1980, plans were made to extract this separately. Cobalt production commenced in 1980 from Underground and will increase substantially when the Open Pit cobalt reserves become available in approximately 2 years time. This paper covers the development of the production method of the principal Underground Orebody, known as the Lower Orebody, and the control systems applied to it. HISTORY The Lower Orebody, formerly known as the Nchanga West Orebody, was discovered by extensive Diamond Drilling operations in the late 1920's. Development of the Shaft complex and the orebody commenced and continued until 1931 when flooding from development on the 480 foot horizon necessitated closure. The mine remained closed until 1937 and production commenced from the Lower Orebody in 1939. Various expansion schemes of the Metallurgical Plants and the Underground workings were completed over the years with the result that Underground production increased steadily to in excess of 150 000 tonnes copper annually in the 1960's. In recent years production has levelled out at slightly less than 100 000 tonnes annually. This decrease is as a result of producing from a lower grade reserve, available within a more limited production front, and the application of production constraints in the light of experience gained. GEOLOGY Within the Nchanga Mining Licence Area of Chingola Division, there are a total of 14 known copper orebodies in the basal part of a thick succession of sediments of Pre-Cambrian age. The sediments rest on a Basement Complex of granites, gneisses and schists. Three superimposed stratiform orebodies, known locally as the Lower, Intermediate and Upper Orebodies, occur over a vertical interval of approximately 150m. Current annual copper production is approximately 300 000 tonnes. The ore originates from four different mining operations, one Underground mine and three Open Pits. Approximately 9 million tonnes of ore grading between 3 and 3.5% copper are milled annually. The two largest sources of ore, the Under- ground mine and the Nchanga Open Pit are on the gently dipping south limb of the Nchanga Syncline (Figure 1). In the Nchanga Open Pit the major source of ore is the Upper Orebody with lesser tonnages from the Intermediate and Lower Orebodies. In the Underground mine the Lower Orebody is the only orebody being mined, underground mining of the Upper Orebody being suspended for economic reasons in 1978. The typical stratigraphic column is illust- rated in the legend on Figure 1. The footwall rocks comprise either Nchanga Red Granite or the Arkose formation, both of which are hard competent rocks, offering generally good mining conditions for footwall development. Copper mineralisation of the Lower Orebody extends from the upper part of the Arkose to the top of the Lower Banded Shales. Overlying the Arkose is the Transition zone (0-18111 in thickness). The Transition zone comprise a lower member, Transitional Arkose, consisting of incoherent kaolinised sandstone, and an upper member, Transitional Lower Banded Shales consisting of normally soft bleached and silicified shale. The soft nature of the Transitional rocks is

Jan 1, 1981

By H. Matlock

Beam-columns with continuous or discontinuous transverse and angular loads and elastic restraints are represented mathematically in a manner corresponding to finite-element mechanical models. Solutions for linearly elastic cases are accomplished by direct recursion-equation elimination of unknowns, and for cases involving nonlinear loads and supports, by repeated trial-and-adjustment of complete elastic-type solutions. Five practical applications are presented by which various capabilities of the general method are illustrated. The examples include simulation of a pipeline launching and the bending and collapse of a conductor pipe in deep-water drilling operations. INTRODUCTION The diversified and complex operations being conducted in support of the production of offshore oil have produced a wide variety of new problems in structural mechanics. Many of these problems cannot be solved by conventional analytical or experimental approaches and have therefore stimulated inquiry into new methods of solution. It is the purpose of this paper to give a brief description of an analytical method for solving nonlinear beam-column problems and to illustrate the generality of the method by applying it to several problems related to offshore operations. Although the data for all of the examples are artificial, the cases discussed will be recognized as being based on actual situations. DESCRIPTION OF METHOD The analytical approach which is to be described stems from research on offshore foundations, in particular, the study of lateral-load behavior of foundation piles. The method represents a generalization of a technique which was suggested by Gleser' and extended by Focht and McClelland2 and Reese and Matlock." To maintain generality and therefore versatility in the method, a considerable variety of input data is considered. Fig. 1 illustrates the various types of loads and restraints which might be applied to a short segment of a beam. Each of the terms illustrated in the figure is shown acting in a positive sense. Capital letters are used to designate concentrated quantities whereas the corresponding lower-case symbols indicate effects which are distributed in some way along the length of the beam. The transverse loads and the elastic restraints may be divided into two classes: (1) loads Q and q and springs S and s, which act normal to the axis of the beam, and (2) couples T and t and rotational springs R and r, which act in an angular sense. In addition, there is an axial force P which may be constant or may vary along the length of the beam. The bending stiffness of the beam (the product EI of the modulus of elasticity and the moment of inertia) is designated by the symbol F. The assumptions of conventional elementary beam theory provide the basis for the present method. Among these are the neglect of shearing and axial deformations and the limiting of consideration to straight beams of symmetrical cross-section. Lateral deflections are considered to be small compared to original dimensions. A deformed element of such a beam is shown in Fig. 2a. The curvature of the beam is approximated by the second derivative of the deflection y with respect to distance x along the beam. It is assumed that the material of the beam is linearly elastic and therefore the relation of Eq. 1 between curvature and bending moment M is the ordinary expression from elementary beam theory. A generalized beam element is shown in Fig. 2b. The element has been deflected in a positive direction by an amount y and tilted through a small positive angle dy/dx. The various loads and elastic restraint reactions are detailed in the figure. Temporarily, only distributed effects are considered; provision for concentrated loads and restraints will be made subsequently. Eq. 2 in Fig. 2b is obtained by summing the forces and moments acting on

By Robert M. Lewis

Can wet-ground mica be produced from mica schist ores, and if so, would its properties be comparable with products now on the market? This was the problem which prompted the development of a flowsheet for the beneficiation of mica schist. The fine-ground mica industry relies on weathered pegmatites and alaskite ores as sources of raw material. The mica concentrates obtained from these ores are relatively clean and require moderate beneficiation to meet color and bulk-density specifications. Mica obtained from mica schist is iron-stained and decrepitated and requires additional beneficiation to produce a wet-ground mica product. Despite these adversities, there are several advantages to be gained by mining and processing mica schist ores. The mica content of these ores is considerably higher than that of the pegmatites and alaskite ores now being mined, often containing in excess of 40% mica. This higher-grade mica feed should promote a lower mining and milling cost. The mica schist ores with their higher mica content would mean less tailings to handle; however, there would have to be a means for disposing of acid and sulfate wastes. A flowsheet was developed whereby mica could be recovered from mica schist ores and beneficiated in a way that would result in a high-quality end product.' The essential phase of the process involves using reducing reagents to increase the magnetic susceptibility of iron contaminants which then can be removed with a magnetic separator. General Treatment Procedure The mica is floated by either of two methods, an amine float in an acid circuit' or the U.S. Bureau of Mines (USBM) amine-fatty acid float in an alkaline circuit' The flotation mica is ground in a pebble mill to liberate contaminated particles and expose iron-stained surfaces. The concentrate is then conditioned with a reducing reagent and passed through a Frantz Ferrofilter for the removal of magnetic material. The nonmagnetic product is acid-leached to further reduce the iron contamination. The leached material is then ground to product size and checked for specifications. Discussion of Flowsheet and Its Development Flotation: The mica is concentrated by flotation using either of two methods: an amine float in an acid circuit, or the USBM amine-fatty acid float in an alkaline circuit.' The writer does not wish to elaborate on the relative merits of the two flotation procedures; however, after investigating ores from various localities, it was felt that the amine float in an acid circuit was more consistent when using a standard procedure. Iron Reduction and Magnetic Separation: This phase of the flowsheet may be considered the key to the process. It was developed when it became apparent that hot acid leaching had just about reached its maximum effective¬ness for color improvement. S. C. Sun and William Hirsh in "Hydrochloric Acid Leaching of Iron From Pennsylvania Aluminous Clays,"` reported iron extraction for -20-mesh minerals of 82.20% for hematite and only 33.46% for magnetite. The test procedure employs a 19% hydrochloric acid solution, 104°C temperature, and 10% solids. It was felt that magnetic removal of some of the iron contaminants before leaching therefore would be advantageous. Since the iron minerals present as contaminants vary in magnetic susceptibility, it was decided to experiment with reducing reagents as a means of influencing their magnetic properties. Zinc hydrosulfite or sodium hydrosulfite were the reagents used throughout the tests. The procedure developed consists of conditioning the mica concentrate in a closed container at approximately 5% solids with a reducing reagent. Approximately 10.0 lb of zinc hydrosulfite per ton of mica concentrate is used. The ferric iron is reduced to the ferrous state (magnetic) and oxidation is retarded by isolation from the atmosphere in a closed container. After the desired conditioning time has elapsed, the material is passed through a Frantz Ferrofilter where the magnetic particles are retained and discarded as

Jan 1, 1972

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves (1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worthless or harmful impurities, and (4) the profitable disposal of the product. The fist step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1964