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The addition of cement to underground backfill at The Zinc Corporation, Limited and New Broken Hill Consolidated Limited, Broken Hill commenced in 1967. A deterioration in metallurgical performance at each concentrator occurred as a result, with increased loss of lead and zinc to residues. Investigations to determine the reasons for this problem and methods to counteract it have been undertaken. This paper outlines the effects of cement on lead-zinc beneficiation at Broken Hill and presents an interim report on attempts to overcome the metallurgical deterioration.

Jan 1, 1971

By Michael R. Walsh, John H. Wright, Eivind B. Jensen

A tunnel boring machine (TBM) was designed and built at the Cold Regions Research and Engineering Laboratory in 1992 for use in Antarctica. The TBM system was tested at the South Pole where a 120-m long tunnel was bored to prove the concept. Modifications were made to the system resulting from this work. In 1999,boring of a 600-mutilidor began as part of the new South Pole Station. Tunneler hydraulics reliability problems prevented the completion of the tunnel before the end of the short construction season. This paper discusses the design and operation of the TBM, proposed solutions to the problems encountered, and current operations of the system.

Jan 1, 2001

By V. Krupa, E. Lazarova

A method is proposed for the continuous calulation of a rock mass in real time while tunnelling with a TBM. Rock properties are investigated through models of the fracture stress under the disc cutters, the quasi-shear stress between the disc cutters and the specific energy of cutting under the disc cutters. Comparison of theoretical and monitored data of cutting specific energy can be used to determine theoretically the prevailing shape and size of the bulk debris. The shape and size of the chips from a given rock vary with the boring parameters. Introducing shape and volume corrections into the models of the evaluated stresses suppresses the influence of the boring regime and allows the rock properties to become dominant

Dec 1, 1996

By F F. Pitard

The optimization of metallurgical processes requires knowledge of the heterogeneity carried by constituents of interest. The common scenario, almost an industry standard, is to rely on the engineering firm who in turn relies on favorite manufacturers of sampling equipment to provide the appropriate sampling systems in the plant to perform accurate metallurgical accounting. This sequence is flawed from the beginning to the end because everything should be based on a careful understanding of the Theory of Sampling (TOS) by the company project team and their expert who invariably would suggest various approaches and different sampling systems.The necessary progressive and iterative approach should be that the company’s project team (mining or other industries) would do its home work to have a good understanding of the geometallurgy, mineralogy and texture of the ore in each geological unit so consultants and engineers would have the best information to start with. Then a reputable sampling expert would recommend which sampling systems are needed, so the company would require engineering firms to follow pre-established, non-negotiable requirements, and finally select the sampling equipment existing on the market today that is most likely to lead to accurate and precise enough metallurgical accounting.It is the author’s experience that when this necessary progressive and iterative approach is bypassed, sampling systems installed in the plant are likely to transgress the most elementary rules of sampling correctness. Invariably the argument is that the company cannot afford correct sampling systems for metallurgical accounting as suggested in the Theory of Sampling. There is nothing that is farther from the truth when later problems will develop and inevitable reconciliation difficulties with miners and geologists become daily routine with impossible answers; as a last resource the sampling expert may be called to perform a post-mortem analysis.The progressive and iterative approach suggested in this paper should be a due diligence requirement for any bank providing a loan for an important new mining project; anything less is most likely to generate unpleasant financial losses; historical, well-known examples are referred to.CITATION:Pitard, F F, 2015. A progressive, iterative approach leading to reliable metallurgical accounting sampling systems, in Proceedings MetPlant 2015, pp 78–91 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

Gas-liquid contacting in the packed bed is a common operation in metallurgical reactors. Research has shown that, unlike wetting flow, non-wetting liquid flows in the form of discrete droplets or rivulets. Thus, modeling of the liquid phase as a continuum is in contradiction to the observations. Also, for the non-wetting case, continuum models have failed to describe liquid flow path when the liquid source is a point source. The aim of the current work is to put forward a combined Lagrangian-Eulerian approach to model the liquid and gas flow in the packed bed. Liquid is assumed discrete and modeled using a force balance approach. Gas is assumed to be interpenetrating continua and modeled using k-emodel for turbulent flow. Structured packing is assumed and x- ray imaging technique is used to visualize liquid flow lines in the bed. Simulation results for liquid flow path compared with the experiments.

Jan 1, 2006

By J. B. Hiskey

Introduction The domestic copper industry has suffered for some time from declining ore grades; rising costs associated with conventional mining, milling, smelting and refining; tightening environmental restrictions; and shrinking markets due to materials substitution. Ore grade depletion is a major problem. It is illustrated by the decline in average copper yield shown in Fig. 1. From 1979, copper grade has dropped 60%, lowering yields from 1.2% to 0.49% (Sousa, 1981). The US copper industry is taking drastic measures to enhance its competitive posture and to guarantee its future worldwide position. In a sense, this involves a general restructuring of the processing philosophy of US copper producers. Judging from recent trends, this restructuring relates to the application of solution mining techniques to the treatment of copper ores and low grade waste material. Recovering copper by leaching techniques has been practiced for centuries. As early as the mid-16th century, some Hungarian copper mines were recycling copper bearing leach solutions through waste heaps (Nash, 1912). In the US, recovering copper from dilute mine waters has been carried out for more than 100 years. There are, however, certain technical innovations that have elevated the importance of solution mining as a process for copper recovery. These include: • Advances in solvent extract-electrowinning (SX-EW); • Developments in acid and acid ferric cure processes for oxide and mixed oxide sulfide ores; • Improvements in heap and dump construction; and • Advances in in situ leaching technology. Generally, solution mining enjoys certain intrinsic advantages over conventional mining and milling. Compared to conventional milling, the combined capital and operating costs of leaching facilities are normally lower, start-up times are faster, and the leaching operation usually has less impact on the environment. Furthermore, solution mining represents an expedient way of extracting metals from small shallow deposits, and is particularly suited to the treatment of low grade sources. And, in the case of waste dump leaching, there is a tremendous resource in-place that has the mining cost already off the books. This paper updates current US copper solution mining trends. Solution mining systems Schlitt (1980) summarized the characteristics of the principle leach systems in the US. He pointed out that the wide variations in copper deposits make solution mining a more site-specific activity than conventional mining and milling. Heap leaching is usually selected for moderate to high grade ores having a copper mineralization that is amenable to acid leaching (oxides, silicates and certain sulfides). Higher grade ores mined specifically for heap leaching are usually treated to optimize copper extraction, therefore, crushing and some pretreatment (acid curing) may be justified. On the other hand, dump leaching practice usually involves leaching low grade waste rock placed on large dumps as dictated by topography and haulage costs. Mine waste is therefore treated in an uncrushed run-of-mine condition. Finally, in situ leaching is appropriate for either very deep ore bodies or for recovering copper from low grade rock left behind in abandoned pit walls, stopes, and subsidence zones from earlier mining activities. True in-situ solution mining should be defined as the leaching of ore in its original geologic setting. Heap leaching Heap leaching has a long history as a hydrometallurgical process for copper recovery. The methodology of heap leaching established at Rio Tinto in Spain more than 300 years ago is basically the same as that used today. Processing concepts, such as solution management (sprinklers and leach/rest cycles) and copper

Jan 11, 1986

By K. U. Kainer, A. Stark, D. Tolnai, M. Hehenberger, C. L. Mendis, N. Schell, N. Hort

Samples of an as extruded Mg-6Zn-0.6Zr-0.4Ag-0.2-Ca (wt.%) alloy was compressed at room temperature and at 250°C. The in situ deformation tests were performed at the P07 (HEMS) beamline of PETRA III, DESY, with a modified DIL 805 A/D dilatometer with to Kapton windows on the sides and the induction coil opened for the beam to transmit the sample. The deformation rate was 10-3 s-1 the samples were deformed to failure. The diffraction patterns were recorded every 3 s with a Perkin Elmer 1621 Flat Panel Detector. The results reveal that different deformation mechanisms are activated during compression at a given strain value. At room temperature twinning is the dominant deformation mechanism, while at elevated temperature dynamic recrystallization occurs while the contribution of twinning to deformation is significantly reduced. The compressed samples were further investigated with conventional metallography and SEM-EBSD to determine the volume fraction, the type of twinning and the strain retained within the grains. The parallel testing of pure Mg samples under the same conditions allows comparison of the compression behaviour of the ZKQX alloy with Mg.

Jan 1, 2014

By Giovanni A. Bonita

The United States Capitol Visitor Center (USCVC) is one of the largest underground structures ever constructed in the Washington, DC, metropolitan area. The 600,000 ft2 (55,750 m2) structure is entirely underground and immediately adjacent to the shallow foundations of the existing U.S. Capitol building. Interior building columns for the USCVC were supported on 186 drilled shafts that varied in diameter from 4 to 9 ft (1.2 to 2.9 m) and in length from 15 to 45 ft (4.6 to 13.7 m). The vast majority of the building utilities were located beneath the basement floor slab. It was decided at the onset of the project to proceed with construction prior to completion of the design drawings, and coordination between the underslab utilities and the drilled shafts had not yet been finalized at the onset of drilled shaft installation. Given depth and location restrictions of the outlets, relocation of the bulk of the utilities was not possible. Almost half of the drilled shafts were affected, leaving redesign as the most feasible remedial solution. The redesign involved adjustments to the shaft length, diameter, and bell. It took place on a case-by-case basis, sometimes only minutes before installation began. Coordination between the field and design team was excellent, and delay associated with the redesign efforts was minimal. In addition, the detailed, high-quality field records kept by both the contractor and field engineers allowed for accurate and fair estimations of the added drilled footage and concrete volumes placed. The additional service fee, which was minimal, was settled quick and fair.

Jan 1, 2006

By Corinne Boone

CO2e.com, LLC - launched in November 2000 - aims to be ?the global hub for carbon commerce.? CO2e.com is a subsidiary of the Cantor Fitzgerald Group, one of the world?s leading brokerage firms Recent Investor in CO2e ? Mitsui & Co. Alliance with Cantor Fitzgerald Environmental Brokerage Services Group (CFEBS) Offices in London, Toronto, Tokyo, New York, San Francisco, Los Angeles, Connecticut, Houston Primary Goals/Benefits of ET § Goals of Emissions Trading: ? Permit Industrial Growth/Expansion ? Promote Economic Efficiency and Flexibility in Meeting Air Pollution Standards § Benefits of Emissions Trading: ? Enhance Air Quality w/o Economic Stagnation ? Encourage Development of New Technology ? Foster Most Efficient Use of a Limited Resource -- Clean Air § Contributes to Sustainable Development and objectives of UNFCCC, Kyoto Protocol?.

Nov 1, 2002

By Jesse R. Jacobson

A large casino complex in Cherokee, North Carolina recently underwent a $633 million expansion that involved substantial foundation challenges. The site is located in a valley on the southern edge of the Great Smoky Mountains National Park, where subsurface conditions typically consist of varying thicknesses of fill overlying alluvium, residuum, partially weathered rock and rock. The fill and alluvium contain cobbles and boulders as large as several feet in diameter. The residuum and partially weathered rock are very thick in some areas, and the depth at which consistently high quality rock is encountered is highly variable. To reduce the foundation costs for the expansion, continuous flight auger (CFA) piles were proposed in lieu of micropiles. CFA piles are not generally used in this geologic environment and concerns regarding their selection included: (1) an uncertainty that CFA piles could be successfully constructed given the difficult conditions and (2) a lack of regional data regarding unit resistance values and load transfer characteristics. To address these concerns, a design-phase test program was undertaken to evaluate pile constructability, develop an understanding of the load transfer behavior, and establish the required pile lengths. The program included soil test borings, shear wave velocity measurements, timed auger probes, instrumented pile load tests and observation of exhumed piles. It was demonstrated that CFA piles could be advanced through the fill, cobble/boulder-laden alluvium, residuum and into the partially weathered rock, albeit with some limitations. Under axial loading, the pile response was very stiff and relatively high unit resistance values were measured. Pile instrumentation allowed for the evaluation and use of design pile lengths shorter than that tested, and the overall reduction in pile lengths yielded a 40 percent reduction in foundation cost. In general, CFA piles were determined to be a suitable, economical foundation alternative.

Jan 1, 2011

By Robert Stefanko

With passage of the Clean Streams Act of the Commonwealth of Pennsylvania and its impact on the coal industry, considerable research has been conducted to explore various approaches to the problem, including deep-well disposal. Available drillhole data from gas and oil wells were used to develop cross -sectional maps for various portions of the state and potential disposal zones were evaluated. Bethlehem Mines Corp., faced with a severe water problem at its Marianna operation in Washington County, cooperated with the Dept. of Mining at The Pennsylvania State University in establishing a 1500-ft well into the Salt Sands for the purpose of determining the feasibility of mine water disposal. The thickness, porosity, and permeability of the formation at the well site proved to be below what had been anticipated from drillhole data. Further, subsequent hydraulic fracturing did not improve the flow characteristics of the well; pumping pressures remained in the range of 1800-2000 psig for disposing of water at the rate of 150 gpm. The legal problems of disposal at the site were very formidable. When the Salt Sands proved to be less than satisfactory, permission could not be obtained to dispose in other promising formations. The paper details many of the problems associated with the experimental well and makes an assessment of the potential for deep-well disposal of mine water. The concept of disposing of liquid industrial wastes by deep-well injection is not a new one. Brines associated with crude oil long have been disposed of in this manner, with the additional benefit of aiding secondary oil recovery. More recently, with the expansion of nuclear energy, the lethal, highly radioactive wastes which are by-products of the fission process have created severe disposal problems. During the past ten years, a variety of industries have resorted to subsurface disposal, some of the details of which are given e1sewhere.l,2 The list reveals wide variations in injection rate, pumping pressure, cost, and waste disposition. Included are successful installations in Western Pennsylvania. Enactment of more restrictive clean-water legislation in Pennsylvania recently had a great impact on the coal industry. Among its provisions was the reclassifica-tion of most mine water as industrial waste whose dis-posal is prohibited in any stream of the Commonwealth. This had the effect of accelerating research in a variety of areas, although treatment methods still retained primary interest. When a feasibility study of deep-well disposal was proposed to the Pennsylvania Dept. of Mines and Mineral Industries, the Coal Research Board (CRB) approved it. This paper summarizes the efforts on this project. Acid mine water is a chemically complex liquid. having no definite quantitative relationship among its constituents. However, it is the iron disulfide (FeS2) associated with practically all coal seams that produces the objectionable products present in acid mine water when combined with air and water. The principal contaminants are sulfuric acid (H2SO,) and ferric hydroxide (Fe(OH)2. Ferric hydroxide is a rust-colored gelatinous precipitate that coats stream bottoms and destroys aquatic life. However, other ions and bacteria are present in acid mine water in varying amounts.

Jan 1, 1971

By F. Albayrak

This report is a study of the impact of Federal laws and regulations on the domestic supply of metallic and nonmetallic minerals. The study was confined to pertinent environmental legislation and the recently enacted Federal Mine Safety and Health Act of 1977. Emphasized were the legal requirements placed on individual selected mineral industries, and the economic impact of these requirements. A certain amount of attention was also directed to the particular environmental and health and safety problems generated by selected mineral industries. The study also pinpointed a list of major problem areas having significant impact on the domestic mineral supply.

Jan 1, 1978

A glance at the following chart reveals that because of the continued poor economy, the slump in industrial mineral production continued into 1980. Gypsum was down 17% from 1979; cement down 9%, sand and gravel, 17%, and crushed stone, 11%. All these downward trends reflect the high interest rates and high costs that slowed construction starts. Domestic fluorspar was down 21% and imports off 14% due to the steel iudustry slump. However, potash production was up 8% and phosphate, 5%. Increased drilling activity spurred au increase in barite production of 25%. Most other industrial minerals posted losses with only a few insignificant increases. As expected, prices were higher, reflecting increases due to high costs for labor, supplies, and above all, energy. Increasing energy and transportation costs also had their effect on industrial mineral production. Railroad freight rates increased 16-22% including fuel surcharge; truck rates increased 11-14%a; and ocean freight rates increased 20% for finished goods. The 1979 shortage of boa and hopper cars did not continue into 1980-most likely due to low production of many of the hulk industrial mineral commodities. All in all, 1980 was not a good Year for industrial minerals.

Jan 5, 1981

By M. Vallée

"RÉSUMÉDurant les 10 dernières années, les améliorations dans le contrôle des limites des sautages et les arpentages après l’exploitation ont fourni des informations préalables et post facto sur les limites minières réalisées par rapport à la planification, plus particulièrement pour les grands chantiers exploités par les méthodes chambres vides et sous-niveaux. Cependant, peu de recherches ont été faites pour améliorer la délimitation du minerai, l’estimation des ressources et des réserves, les études de faisabilité et la récupération minière dans d’autres types de gisements. Il faudra d’abord expliciter les impacts des lacunes, en quantité et en qualité, de l’information géologique et de l’échantillonnage sur le rendement de l’extraction. Il faudra également remplacer la notion de « dilution générale » par celles de « dilution » et de « perte de minerai ». Les impacts des lacunes observées sur l’exploitation des gisements d’or filoniens sont démontrés par une simulation basée sur des résultats d’études antérieures à la mine Thompson d’Inco, des impacts financiers de densités d’information moindre et par des analyses des valeurs actualisées nettes (VAN) de deux cas types.Deux gisements similaires, de 3 m et 6 m de largeur et exploités par chambres vides sont étudiés, en prenant pour cas de base la délimitation sur maille de 7,5 m (25 pi.) et en étudiant les impacts des limites moins précises supportées par une maille de 15 m (50 pi.), en assumant que ces imprécisions moyennes de +/- 0,62 m se transforment soit en surestimation (dilution), soit en sous-estimation (pertes de minerai).Les impacts d’information moins précise ont été beaucoup plus forts sur le gisement plus étroit : autant la dilution que les pertes de métal ont diminué les VAN du gisement de 3 m de 39,27 % et 45,41 % respectivement, tandis que les VAN du gisement de 6 m ont été diminuées que de 12,84 % et 11,55 %.Ces impacts des valeurs actualisées nettes diminuées justifient et exigent des efforts plus systématiques pour s’assurer que les travaux de mise en valeur et les études de faisabilité soient réalisés de façon requise pour optimiser l’exploitation et offrir aux investisseurs des rendements compétitifs par rapport à ceux des autres secteurs industriels. ABSTRACTDuring the past 10 years, research work to improve the survey of stope limits after mining supplied useful information, particularly for large open and sub-level stopes, regarding waste dilution caused by differences between final production limits and planned stope limits.However, the efficiency of this information to improve the overall efficiency of the mining process is limited, given that the impacts of inaccurate ore limits leading to dilution (sensu stricto) and ore losses have not been considered adequately. Geological/sampling information should be optimized in terms of quantity and/or quality for the deposit characteristics and the constraints of the mining method used. As industry practice regarding the definition and recording of dilution is flexible and as ore losses frequently are poorly documented, the use of these terms is reviewed.Simulations were carried out on two typical narrow gold deposits, based on an earlier study at Inco’s Thompson mine regarding the impacts of wide to narrow delineation grids using recorded variations of vein geometry. Vertical to sub-vertical deposits of 3 m and 6 m widths mined by long-hole open stopes were considered. Deposits delineated by 7.5 m (25 ft) grids were taken as a base case and the impacts of less accurate limits in conjunction with long hole mining based only on a 15 m (50 ft) delineation grid. The impacts of overestimation (dilution) and underestimation (metal losses) were considered separately, using the average error of +/-0.62 m recorded in the Inco study.The impact of less accurate information was much stronger on the narrower deposit: both dilution and ore losses diminished the net present value of the 3 m wide deposit"

Jan 1, 2005

By Mills R, Shannon W. T, Finch J

As an extension to investigations into methods of upgrading the Iitania content of ilmenite concentrate from beach sands using 100 g/day, a small pilot plant treating 23 kg/ day of ilmenite was used.In the pilot plant the iron oxide in the ilmenite was reduced to iron at 1200°C using carbon (coal/char) without melting the material, using a tunnel kiln heating cycle, the charges contained in saggars, The iron was then separated from the titania fraction by ball milling, wet magnetic separation, and screening. The resulting magnetic product was high in iron (about 80 per cent Fe) and the non-magnetic product high intitania (about 70 per cent TiO2).From this trial sufficient data were obtained to enable the preparation of a flow sheet for a plant producing 62,300 tonnes/year total products, and an estimate of costs to be made. This has shown that for an estimatedcapital expenditure of nearly $6,000,000 and annual production costs of about $4,000,000, the cost per tonne of high titania product (76 per cent TiO2) would be nearly $70.

Jan 1, 1977

By Thompson D. R, Milton R, Perry K. M A

From the Department for Research in Industrial Medicine (Medical Research Council), The London Hospital; and the De Havilland Aircraft Company:M.R.C. INVESTIGATIONS IN 1936In 1936 the Industrial Pulmonary Disease Committee of the Medical Research Council investigated both clinically and radiologically a group of fifty workers who had been exposed for a number of years to the inhalation of alumina in the reduction factory of the British Aluminium Company. The results are shown in Table 1.They also considered the sickness records of all the workers (Hill, 1936), as compared with those in other parts of the factory (Table 2).

Jan 1, 1945

Editor’s note: As usual, the June issue features an industrial minerals review. And some thanks are in order. Thank you to the industrial minerals annual-review editor, to the technical committees chair and vice chairs and to the authors of the individual commodity profiles. Jim Norman of GeoTrans Inc. is the industrial minerals annual-review editor. Gary Tomaino, Specialty Minerals Inc., is the chair of the SME industrial minerals technical committees. Technical committee vice chairs include: •Lucy McCartan, U.S. Geological Survey, agricultural minerals as well as sorbents, filter and process aids. •Steve Herron, Oglebay Norton Performance Minerals, ceramics and refractory materials. •Srinivas Veeramasuneni, U.S. Gypsum, chemical raw materials. •William Langer, U.S. Geological Survey, construction materials. •Vanessa Santos, Independent, fillers and pigments. •Richard Berg, Montana College of Mineral Science and Technology, specialty minerals. Their help makes possible this June industrial minerals issue. On behalf of the readers, the editors thank them.

Jan 1, 2003

By Robert W. Schaut

The use of micropiles is increasing for new construction and to retrofit distressed foundations in expansive soils. Typical micropiles in expansive soils have a lower section where the micropile grout is embedded in direct contact with the soil, and an upper section that is cased with rigid PVC pipe or other material to reduce the friction between the micropile and the surrounding expansive soil. In the upper cased section, the micropile grout is in direct contact with the inside of the casing. During construction, grout can flow upward into the annular space between the soil and the outside of the casing as the grout is tremied into the micropile. Thus, various interfaces may exist in a typical micropile, including soil-to-grout, grout-to-PVC, and soil-to-PVC. As the surrounding soil heaves, shear stresses are mobilized along the interfaces. The frictional characteristics of the interfaces are design variables that must be evaluated. For this study, an experimental program was conducted to evaluate the shear strength of the three interfaces listed above. Conventional direct shear testing was performed at a commercial testing laboratory. In addition, specialized testing was performed at Colorado State University (CSU). For the CSU testing, an interface testing protocol was designed using a modified triaxial cell to allow evaluation of the interface characteristics between rigid PVC and cylindrical specimens of grout or clay soil. It is shown that the shear strength of the soil-to-PVC and grout-to-PVC interfaces are similar, both of which are significantly lower than the shear strength of the soil-to-grout interface. This indicates that the use of a PVC casing in the upper portion of a micropile has a positive effect in reducing friction and the shear stresses resulting from expansive soil.

Jan 1, 2011

By Raymond M. Stateham

Infrared and displacement studies were made of an unsupported roof in Kaiser Steel Corp.'s York Canyon coal mine, Raton, N. Mex. Monitoring of the roof continued until the roof over the area was caved. Loose slabs in the roof, about 6 inches thick, were detected by means of associated thermal anomalies, using remote-sensing infrared instruments. Displacement measurements taken during the study indicate that roof movement was cyclic in nature; the cycles appear to have been related to the mine work cycle (work days to idle days).

Jan 1, 1974

By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.