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By William P. Lohden

INTRODUCTION It is recognized that, for a variety of reasons, some companies in the mineral industry today are by no means cash-rich and, in fact, are reporting a growing proportion of long-term debt in their capital structures. A review of recent balance sheets of small, medium-size, and some larger companies, indicates that a fair number still have substantial positions in cash equivalents such as U.S. government issues and other short-term money market instruments. In part, this paper concerns itself with companies which have sufficient cash and equivalents and/or cash generation to internally finance mining projects or expansions but which, for some reason, choose to borrow funds. Misconceptions which appear to frequently underlie so-called "leveraging" decisions are explored in this paper. Also considered arc' those circumstances under which any company, including one that is cash rich, should consider borrowing for a project in an amount beyond what would otherwise be necessary based upon its internal financing ability. I do not attempt to cover the raising of equity capital in public markets in this paper. OVERALL RETURN ON INVESTABLE CASH If you approach an individual with an investment which can be financed from savings, or by borrowing at a rate higher than one is earning on savings, that individual will quickly tell you that to pay interest at a rate higher than is being earned on savings would reduce overall income. Assuming that additional investment opportunities are not currently being considered, the individual concludes that a draw-down on savings, leaving a cushion for contingencies suited to individual circumstances, is the correct financial decision. For reasons discussed later, the simple mathematical logic leading to this conclusion tends to become obscured at the corporate level. When Leveraged Studies Are Inappropriate or Premature Surprisingly, I have heard of a number of companies that could afford to finance an investment solely with internal funds, which have made DCFROR (i.e. discounted-cash-flow rate-of-return) studies not only on a 100% equity basis but also on a leveraged basis. Certainly, a leveraged study would be appropriate if additional projects were competing for more capital than was available internally. Often, however, other projects are not far enough along to warrant a leveraged study and there is some danger that a project may be undertaken because it has an estimated acceptable rate of return, on a leveraged basis, that is not ultimately earned because some of the other projects are postponed or abandoned and borrowing is less than expected. For the above reasons, until it has been determined that (1) borrowing is a reasonable certainty for a particular project and (2) the timing and amount to be borrowed has been determined within a reasonable range of accuracy, I believe it is inappropriate and misleading to calculate DCFROR for a project other than on a 100% equity basis. Even when there are several projects currently competing for funds and borrowing will be required to finance one or more of them, using the common yardstick of calculating DCFROR on a 100% equity basis is a safer method to initially evaluate and compare the attractiveness of the projects. Many companies, whether they would have to borrow or not, will reject projects that on a 100% equity basis do not meet their minimum rate of return standards. Some companies which have to borrow will undertake a project provided the project's DCFROR on a leveraged basis meets its minimum return standards. The danger of this approach is that even moderate shrinkages of estimated cash flows could plunge return below

Jan 1, 1985

Efficient energy utilization in the electrolytic zinc process, relative to other zinc processes, is one of the reasons for its wide adoption in recent years, says John D. Siddle, zinc plant superintendent at the Bunker Hill Co., Kellogg, Idaho. Designers and operators of electrolytic zinc plants have pioneered process improvements, new equipment, and operating techniques to conserve energy. As energy costs increase it the future and competitive pressure mounts against less-efficient producers, these energy-saving improvements will he regarded as necessary for economic survival. Plant designers and operators should not lose sight of the savings in operating costs possible through intelligent utilization of all available forms of energy.

Jan 11, 1977

By Richard Moldenke

ONE of the gravest problems of the iron foundry today is the accumulation of sulfur in commercial scrap and its effect on the castings made therewith. The ordinary jobbing castings today show a sulfur content of 0.18 per cent., and occasionally as high as 0.22 per cent. The product of the foundry during the war is undoubtedly .to blame for this rapid increase and conditions will become worse as the millions of tons of gray-iron castings of the war period return to the foundry in the form of commercial scrap. In the ordinary cupola remelting of pig and scrap, at least 0.02 per cent. sulfur is taken up; often double that amount. The high cost and difficulty of obtaining pig iron during the war period compelled the use of considerable scrap in the mixtures; frequently charges containing. 90. per cent. of bought scrap were melted. Naturally the sulfur content of the castings increased. Until the advent of the basic-hearth electric furnace, the only method of holding the sulfur within reasonable limits was to use high percentages of pig in the foundry mixtures. Pig iron seldom contains over 0.05 per cent. sulfur, if well made. With pig iron forming 60 percent. of the .charge and the gates, runners, rejections, and bought scrap the other 40 per cent., the sulfur content of the castings can easily be held down to 0.10 per cent. Pig iron, however, costs more than scrap even when melting loss differences are considered, hence as small a percentage as possible will be used.

Jan 2, 1921

By Louis Doremus Huntoon

HAVE been asked many times by financial men in New York as to the best way of securing an interest or control of a gold mine in Canada. It must be understood at the start that prospectors and early owners will not sell a 100 per cent interest. They not only retain from 10 to 25 per cent interest, depending upon the work done, but usually demand more or less cash to reimburse them for expenses. These conditions are accepted by Canadian capital and operating mines looking for new properties. The winter is not a hindrance to work but may be of great advantage. The overburden of soil and gravel is generally wet and most difficult to trench in the summer time especially if at all deep. The snow also permits easy transportation of freight. Properties distant from rail transport all of their machinery and supplies during the winter months.

Jan 1, 1933

By Hans Neuberger

INTRODUCTION IN our everyday life, visual perception plays perhaps a more important role than any of the other senses with which we are equipped by nature. It is, therefore, quite understandable that the average person associates 'with the term "atmospheric pollution," clouds of dust, palls of smoke or deposits of soot, phenomena which are so familiar to the residents of industrial cities. On the other hand, "air" is usually considered the prototype of the invisible, of the intangible, and any suspensions in the air which do not conform to this concept, are regarded as foreign to the atmosphere and thus as "pollution." According to Webster, the term "pollution" implies uncleanness, impurity, in short, something undesirable. Although the scientist often accepts popular concepts, he is generally inclined to suspect that apparently "obvious" phenomena imply, literally, "more than meets the eye." To show that this suspicion is also justified with regard to atmospheric pollution, is the objective of this discussion. It will be shown that what seems foreign to the air at first sight, is by nature an integral part of it, and that the more important aspects of pollution generally escape attention. THE ATMOSPHERIC CONSTITUENTS We can distinguish two classes of atmospheric constituents: the permanent gases, chiefly nitrogen, oxygen, traces of argon, neon, and others, and the variable constituents which include water in its different states, carbon dioxide, ozone, and various suspensions, either in gaseous, liquid or solid form. These suspensions, known by the collective term "Aerosol,"20 will be considered in detail. DUST There are two general types of aerosols: the first type is represented by the socalled "neutral" particle 3, commonly known as dust and experienced by everyone, as it is the more conspicuous type of suspensions. . It often represents a special problem to the mining engineer, the mechanical engineer, the industrial engineer, and many other professional men. Dust consists of finely divided solids derived from weathering, drilling, handling and preparation of rocks and coal. Dust may also consist of organic or inorganic particles resulting from manufacture of a variety of products such as flour, rubber, lime and steel, from traffic on land be it on the highways, on rails or in city streets, from decomposed vegetation or from volcanic eruptions. Perhaps the most reviled member of this class of suspensions is the soot and fly ashes from coal fires and other combustion processes. The cosmic source of dust, namely the injection of meteoric matter into the atmosphere, is of minor significance because the concentration of particles is exceedingly small despite the relatively large mass of material invades the earth’s atmosphere from space

Jan 1, 1948

By John F. Abel

In Silver Plume, Colo., there is a bachelor miner who offers individualized tours of his mine, The Silver Cloud. It is an interesting tour because he drove the mine himself and the view from the shack up there is spectacular. Beside that, he will probably invite you into his kitchen to sit around the old cook stove and drink coffee. When Andy first started his tour business he put a sign on the main street to advertise the fact. The sign read in part: "Women not welcome, but they will be tolerated at $3.00 a head”- the usual fee is $2.50. The sign lasted about 48 hours. Andy had to take it down because "all the ladies in town got mad at me. Now I take them all for $2.50 right across the board," he says. The mining industry is not only reticent about hiring women but traditionally does not even permit women to enter some mines. It would appear, what with the recent action on an equal-rights-for- women amendment in Congress, that we may be wise to examine the prospect.

Jan 1, 1970

LIEUTENANT MARTIN F. BOWLES Martin F. Bowles, born Apr. 25, 1893, at Bonne Terre, Mo., and graduated from the Neodesha, Kans., High School, had finished all but one month of a four-year course in metallurgical engineering at the Missouri School of Mines, Rolla, Mo., when on May 12, 1917, he entered LIEUTENANT MARTIN F. BOWLES. the first Officers' Training Camp at Fort Riley, Kans. At the close of the training period, he was commissioned a Second Lieutenant and as¬signed to Co. B, 355th Infantry, 89th Division, and stationed at Camp Funston. He left this camp with his company on May 21, 1918, and sailed from an eastern port on June 4, arriving in England on June 15, 1918. After a short stay at a rest camp there, he proceeded to France. On August 14, he wrote that he was with Battalion Headquarters as Scout Officer, 1st Battalion, 355th Infantry, 89th Division. The last letter received from him, dated September 2, was written in his dugout and contained the following: "Here it is 2.45A. M. Sitting in a dugout

Jan 1, 1919

By L. W. Saperstein, W. W. Kaufman

Stimulated by the hearing protection clauses in the 1969 Coal Mine Health and Safety Law, attempts were made to determine what safety hazards, in terms of warning signal discrimination, are attendant upon the wearing of hearing protectors. Warning signals of dangerous roof conditions were collected and analyzed from 11 different coal mines in four different coal seams. Primarily, signals of audible level emanating from roof, floor, or coal were recorded. The interpretations of these signals were seen to be very dependent upon coincident visual and tactile signals. Acoustic character of such signals is shown to be dependent upon the spectral energy distribution of the pulses. Roof talk signals generally have broad-band spectra concentrated below 5 kHz. Reverberation times of acoustic pulses are generally less than 0.5 sec in duration. Indications have developed which link the coal mine entry dimensions with the nature of noises recorded there. Related experiments suggest that roof talk can be discriminated from background noise equally well when wearing protection as when not. This conclusion is only appropriate when noise levels warrant the wearing of protection. When quiet, the wearing of protection somewhat reduces discriminatory ability.

Jan 1, 1976

By A. J. Brown

I herewith send to the Institute a sample of Pancake coal. It is rather early yet to make any estimate of the future value of the discovery; but it is certainly the most promising vein of coal yet discovered in the State of Nevada, and, I believe, the first true coal found west of the Rocky Mountains, or perhaps west of the Missouri River, unless some of the Utah coals belong to the coal measures of the Carboniferous age. The Pancake vein certainly belongs * Since the above paper was read before the Institute, some modifications in the description of the machine have been made in order that recent improvements may be embraced.—U. S. A.

By DeVerle P. Harris

Risk for most mineral investments is greater than that of average business ventures, because the physical and economic characteristics of the mineral deposit are never known with certainty. Inasmuch as the merits of a potential mineral investment cannot be fully appraised without consideration of the impact to the investor of the possible unfavorable events associated with the adoption of the project, methods of risk analysis are important in project evaluation and investment selection. The conceptual framework for risk analysis and the means by which some of the recommended practices might be implemented are examined. In addition to the normal business risk due to market forces, the physical and economic characteristics of the mineral deposit are never known with certainty, for only partial or indirect information is available, such as data from drill cores or surface and underground workings. Consequently, risk for most mineral investments is greater than that of average business ventures. Inasmuch as the merits of a potential mineral investment cannot be fully appraised without consideration of the impact to the investor of the possible unfavorable events associated with adoption of the project, methods of risk analysis are important in project evaluation and investment selection. This paper examines the conceptual framework for risk analysis and means by which might be implemented some of the recommended procedures. Utility Theory A discourse on risk and its impact upon investment selection quite often leads the reader into the concept of utility theory, for utility theory is a device constructed by economists to measure the satisfaction an individuai receives from a good; in the case of investment analysis, that good is the outcome of an investment. It briefly is reviewed here to describe the reaction of the individual to risk and as a stepping stone to other techniques more suited to risk analysis at the level of the firm. Utility theory proposes that an investor possess a utility map (curve), such as indicated in Fig. 1, which indicates the value in utiles of potential monetary rewards to an individual with some specific endowment of resources. Points on this map are obtained from the following relationship:

Jan 1, 1971

By J. Blodget Britton

SIX different samples of anthracite, each a firm compact lump, were finely pulverized and immediately put in bottles. Portions of these were weighed and placed upon an ordinary water-bath and dried for one hour; the average loss was 1.24. The same portions were then placed in a hot-air oven, and for two hours kept at a temperature of 285' F., and, after cooling in a dry chamber, were again weighed, when there was found a further average loss of 1.22, making a total so far of 2.46. They were then immediately returned to the oven and for two hours more kept at a temperature of 530' F. and cooled and weighed again, when no further loss was found, but an average gain of .55 upon the previous weighing. The same portions were a third time placed in the oven and for about ten minutes kept at the last-mentioned temperature, and then, while still hot, were poured into one-quarter inch glass tubes, each with a bulb at one end, and heated over a Bunsen burner at a temperature below a red heat, when more water vaporized and condensed in small clear globules on the cold parts of the tubes. Fresh portions of the coals were then taken, and the total amount of water determined, and the average was found to be 3.04, or 1.80 more than was found at the temperature of the water-bath, which was perhaps a little below 212' F., and .58 more than at 285' F. Tests were afterwards made by placing other fresh portions of the

By T. C. Atchison, W. I. Duvall, D. E. Fogelson

Dr. Clark has given an excellent resum6 of the recent theoretical re- search work that has been done on the generation and propagation of stress waves in various types of media.1 Unfortunately the dynamic properties of rock do not fit the assumed properties of the idealized media. As a result, none of the theoretical solutions for the generation of stress waves by applied pressures to interior boundaries of the spherical or cylindrical cavity appear to be completely satisfactory to explain experimental data. This fact does not mean that the theoretical work is in error. It simply means that the appropriate dynamic properties of rock have not been taken into account in the present theoretical derivations. Because of the difficulty of theoretically accounting for the crushing and cracking that takes place when explosives are detonated in spherical or cylindrical cavities, it seems advisable that future theoretical studies should attempt to separate the generation of stress waves from the propagation of stress waves. Perhaps if these two problems are separated, we may be able to solve one of them satisfactorily so that theory and experimental data agree. Dr. Clark's resumé of the research work on scaling and crater formation by point charges is aimed at obtaining a basic understanding of the physical theory of rock breakage, wave generation, and wave propagation. A cursory reading of Dr. Clark's paper shows that there is very little information summarized that can be used by the practicing engineer in the field of blasting. When problems become too difficult to solve theoretically it is always helpful to take the empirical approach and collect experi-

Jan 1, 1967

By F. Z. Schellenberg

(Pittsburg Meeting, March, 1910.) SYSTEMATIC exploitation in the Pittsburg coal-seam on a large scale is simple where the boundaries of the property do not interfere by forcing drainage-, ventilation-, and transport-lines of entries to be run to particular confined fronts. A prime condition governing development is the natural direction of the seam's perpendicular cleavage-planes, giving long lines of smooth faces near together and parallel, bearing about 65° to the left of the meridian and therefore crossing the basins. The gradients of dip into the basins change from 10 per cent at the east rim to practical flatness northwestward across the great coal-fields, a hundred miles wide; the clip being halved in rate at each successive crossing-over of an anticlinal crest. Elevations above sea-level on this transverse section, in scope of present development, differ by 1,000 ft. between low trough and high outcrop. Local irregularities of dip are found, but the main feature to be recognized is the pitch of the basins-the general rise northeastward at 20 ft. per mile, from 100 ft, below sea-level at the low point near the. SW. corner of Pennsylvania to 1,500 ft. and more above tide, and the appearance then, at the surface, of the lower coal-seams carried in the next deeper-lying thousand feet of rock-measures; below which series come the oil- and gas-sands of Oliphant's charted column of strata, reaching down altogether 3,000 ft. below the Pittsburg coal-seam. Because of -the general regularity of occurrence of the coal-seam, the mine-map depicting the courses of economic operation to be undertaken and the steps in controlled exhaustion, need be but a projection of two dimensions on the horizontal plane of space, and this for the most part composed of natural, almost unbroken lines, on the face and on the end of the coal, co-ordinating rectangularly.

Jul 1, 1910

By William A. Berg

Vegetation on mine wastes was an important topic at the International Symposium on Ecology and Revegetation of Drastically Disturbed Areas held at Pennsylvania State University August 3-16, 1969. This article summarizes the Symposium papers that dealt with the nutritional and physical aspects of plant establishment on mine wastes. Surface Coal Mining Spoils Germany-In toxic spoil banks created by open-cast coal mining, the material was extremely acid and low in nutrients. It sometimes contained toxic quantities of minor elements and also had a water repellency that resulted in little leaching and high erosion. However, applications of calcareous and hygroscopic ash, fertilization and deep mixing (60 cm) have promoted growth on hundreds of acres. Knobe, N., Rhine Inst. Air Pol., Essen.

Jan 1, 1970

By W. M. Pierce

CORRUGATED sheet zinc has been used abroad for a great many years as a roofing material. In this country it has been in use for about 10 years. From the outset it was recognized that zinc sheets required closer spacing of the supporting purlins than steel sheets. Exact data regarding safe maximum fiber stresses were not available, however, and on occasions the span used was excessive and the sheets sagged. This paper describes both service and laboratory tests to determine safe maximum fiber-stress values for various grades of zinc for use in calculating the proper purlin spacings for any gage and profile under given loading conditions. These tests consist of laboratory loading tests on full-size roof sections over extended periods of time; of actual roof installations erected in conformity with the indications of the laboratory tests and observed over a period of years; of careful determinations of the apparent elastic limit of several grades of zinc, and finally of static tests1 (so-called creep tests) to determine the rate of flow of zinc under a variety of static tensile stresses at definite temperatures. Certain of the individual tests extended over a period of more than two years.

Jan 1, 1929

By R. K. Bowden

In an effort to gain a better understanding of shale joint behaviour, normal-only and shear creep tests were performed on artificially prepared shale joints. Pre- and post-test surfaces were examined for changes in morphology. This paper discusses both of these programs and the results derived from them.

Jan 1, 1984

By C. Q. Payne

The art of crushing ores and other materials by means of rolls is a comparatively recent one. While the first record of rolls using iron crushing-surfaces dates hack to the year 1806, when they were employed in Cornwall, their principal developmcnt has taken place during the past 30 years. To Stephen R. Erom belongs the credit of the pioneer in introducing the belted high-speed roll, which has had its origin and a marked development in this country. His notable contrib'ution to the art was in the use of a single bed-plate or frame supporting the roll-shafts, and to which levers holding the mova, ble roll-bearings were pivoted. He also made use of steel tension-rods to support the crushing-strains, and of hammered-steel tires for the crushing-surfaces. These changes brought the design of crushing-rolls to a high level. Following closely thereon, about 1885, W. R. Eckart conceived the idea of the swivel or ball-and-socket support for the roll-shaft bearings. This is an excellent mechanical conception, especially for bearings held against a spring pressure, and while it may not be necessary for all types of rolls, yet it has been quite generally adopted by other roll-designers, and illustrates the refinement which roll-construction has now reached. Other engineers, as, for example, Argall, Vezin, Roger, and Sturtevant, to mention only a few among many, have also given the closest attention to the various details of rolls, such as the frame, springe, bearings, and shafts, and have developed many novel and original designs. It has remained, however, for the boldness and originality of Mr. Edison to extend the field of crushing-rolls in two new directions, and to cause them to ex-

Jan 1, 1913

By J. P. Batcha, J. Robert Denny

Since 1964. Newmont Mining Corp. has been engaged in a systematic research and development of computer techniques for a variety of mine planning applications. The general objective of this effort has been twofold: first, to arrive at a viable near-optimum plan for mining a particular orebody and, second, to decrease the financial investment by reducing the man-hours required for mine planning. Three major phases in the evolution of Newmont's computer techniques for mine planning are discernible. In phase one, the computer's ability to duplicate manual drafting and contour mapping was developed. Obviously, all recognized geologic characteristics had to be included, and consequently the development of computer techniques for the proper incorporation of structure, stratigraphic trends, and other geological features was a significant aspect of phase one.

Jan 1, 1970

By W. F. McDermott

This is the dawning of the computer age in process control. As 1968 drew to a close, many plants had computer installations which were being used for logging, monitoring and reporting. Today, computer usage is given serious consideration before the construction of any major minerals processing plant. Unitized automatic control of individual processes is abundant. Many plants are considering closing these control loops, i.e., allowing the computer to direct the operation of the controllers (Digital Analog Control-DAC). The next step is to make the computer itself the controller (Direct Digital Control-DDC)1 Perhaps the most important future use of computers will be in controlling interrelated operations and control units. Progress along these lines depends on the steadily improving capabilities in the field of mathematical modeling.

Jan 1, 1970

By John F. Havard, Armine F. Banfield

Sooner or later, we all get involved in the economic study and valuation of a mineral deposit. To communicate clearly the necessary information, we must scrupulously use various terms with specific meaning. All these terms-such as ore, exploration, development, production, reserves, proven ore, probable ore, possible reserves, resources, as well as similar terms applying to coal-are continually on the lips of anyone who reports on the economic aspects of a mineral deposit at the exploration, development, and production stages. The meaning of these terms is even more important in feasibility studies to determine whether a deposit should be put into production. Finally, careless use of these terms in reports published for public financing may, and sometimes does, lead to prosecution of the writer for misleading information.

Jan 7, 1975