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By Alfred H. Bell

The year 1936 in Illinois was marked by considerably increased activity in drilling, both wildcat and proved territory, in leasing, and in seismic and geologic exploration. Of the 92 oil and gas wells completed during 1936 in Illinois, 49 were oil wells, 3 were gas wells and 40 were dry holes. This compares with but 34 completions in 1935. The total of the daily initial productions of the new oil wells was 1755 bbl., or an average of 36 bbl. per well. One new field was discovered, the Bartelso field in Clinton County. The leasing of some large blocks of acreage in Clay, Marion, and other counties by the Carter Oil Co. in the late fall of 1935 was followed in 1936 by extensive leasing in southern Illinois by 10 major companies and many smaller companies and individuals. It is estimated that 2½ million acres were under lease by the end of 1936. Seismograph surveying has been carried on by about seven companies, and the number of seismograph parties operating in Illinois has varied from six to eight throughout most of 1936. It is estimated that approximately two million dollars has been spent in the state in seismic and geologic exploration and in leasing during the last quarter of 1935 and all of 1936. Production of crude oil in Illinois in 1936, according to the Bureau of Mines, was as follows: Barrels Barrels January...................... 325,000 July........................ 402,000 February..................... 294,000 August..................... 380,000 March....................... 396,000 September.................. 386,000 April......................... 347,000 October.................... 393,000 May......................... 389,000 November.................. 363,000 June......................... 383,000 December................... 387,000 4,445,000 This 4,445,000 bbl. was an increase of 3 per cent over 1935. Although this increase was due largely to the fact that production was not artificially curtailed, it also reflects some new production and some increases in production from repressuring and water-flooding, which offset the

Jan 1, 1937

By Rudolf Kudlich

The problem of eliminating the hazards of hoisting in mines has been with us since the industry passed its earliest stages, when coal and ore could be won from surface working and tunnels. At first, safety devices were introduced as means of decreasing the amount of labor necessary to produce the mineral, or to increase the amount that could be obtained from a certain opening. For example, crude ladders replaced winding footpaths or steps cut into the walls of the pit or shaft, decreasing the distance it was necessary to carry the product to the surface and eliminating, to some extent, the hazard introduced by the precarious footing afforded by such paths and steps. Latcr, instead of being carried from the pit on the backs of men, the product was hoisted in buckets or baskets on a rope passing over a pulley or around a windlass. Thus the capacity of the pit was considerably increased, and the hazard due to making many trips up and down the shaft was eliminated. From such beginnings accident prevention in mine hoisting advanced with the importance of the industry, until at present hoisting compares favorably with other branches of the mining industry with reference to safe practices. As in the other branches, this progress has been accomplished along two general lines—by legislation, rules, and education, and by the installation of safety devices. Though due credit must be given the former, it is not so satisfactory as the latter. Legislation, to be effective, requires a policing and inspection system to guarantee enforcement, such as we cannot hope to inaugurate. Rules may be satisfactory so long as the employer controls the labor market, and dismissal or some other form of discipline is an effective means of insuring obedience to the rules; but where labor demand is in excess of the supply, or where labor organizations are in control, such measures are not effective. An educational campaign will draw attention to hazards and may awaken a desire to avoid accidents by exercising the proper care. It is necessary, therefore, to place our reliance mainly on mechanical devices to prevent accidents, and to depend as little as possible on laws,

Jan 1, 1923

By Rudolf Kudlich

The problem of eliminating the hazards of hoisting in mines has been with us since the industry passed its earliest stages, when coal and ore could be won from surface working and tunnels. At first, safety devices were introduced as means of decreasing the amount of labor necessary to produce the mineral, or to increase the amount that could be obtained from a certain opening. For example, crude ladders replaced winding footpaths or steps cut into the walls of the pit or shaft, decreasing the distance it was necessary to carry the product to the surface and eliminating, to some extent, the hazard introduced by the precarious footing afforded by such paths and steps. Latcr, instead of being carried from the pit on the backs of men, the product was hoisted in buckets or baskets on a rope passing over a pulley or around a windlass. Thus the capacity of the pit was considerably increased, and the hazard due to making many trips up and down the shaft was eliminated. From such beginnings accident prevention in mine hoisting advanced with the importance of the industry, until at present hoisting compares favorably with other branches of the mining industry with reference to safe practices. As in the other branches, this progress has been accomplished along two general lines—by legislation, rules, and education, and by the installation of safety devices. Though due credit must be given the former, it is not so satisfactory as the latter. Legislation, to be effective, requires a policing and inspection system to guarantee enforcement, such as we cannot hope to inaugurate. Rules may be satisfactory so long as the employer controls the labor market, and dismissal or some other form of discipline is an effective means of insuring obedience to the rules; but where labor demand is in excess of the supply, or where labor organizations are in control, such measures are not effective. An educational campaign will draw attention to hazards and may awaken a desire to avoid accidents by exercising the proper care. It is necessary, therefore, to place our reliance mainly on mechanical devices to prevent accidents, and to depend as little as possible on laws,

Jan 1, 1923

By E. P. Pfleider, Rolland L. Blake

IT is generally believed that the amount of diamond drilling will increase appreciably in the next decade, as the seaarch for minerals throughout the world becomes more difficult and intense. An attendant problem may be one of short diamond supply, resulting in higher bit and drilling cost. With this background, the U. S. Bureau of Mines' and the School of Mines at the University of Minnesota' have established comprehensive research programs in diamond drilling. One of the several aims is the design of a more efficient bit, which would lower diamond consumption and increase rate of advance, both essential in reducing drilling costs. The objective of the specific research problem" discussed in this paper was an investigation of the cutting action of the cliamonds set in a diamond drill bit, cutting action meaning the manner in which the diamonds cut or. loosen the minerals in the rocks being drilled. In the literature on cutting action such descriptive terms are used .as: grinding, wearing, cutting, breaking, shearing, scraping, melting, and chipping. These actions were seldom described or defined. Grodzinski describes the cutting action of a single diamond in the shaping of certain types of material as "breaking out chips of the material." Brittle mate-. rials break as small separate chips, and tough materials, because of heat generated, give a continuous chip. Deeby said about diamond drills: "When diamonds are forced into the formation and rotated, they either break the bond holding the rock particles together, or they cause conchoidal fracture of the rock itself. The former action occurs when drilling in sandstones, siltstones, shales, etc. and the latter action when drilling in chert, flint, or quartz." He said that diamonds cut on the "grinding principle" but he does not define or elaborate on this action. The cutting action of diamonds on glass was first investigated about 1816 by Dr. W. H. Wol-laston, an English physicist. The best glass-cutting diamonds have a natural or artificially rounded cutting edge. This edge first indents the glass and then slightly separates the particles, forming a shallow and nearly invisible fissure. Since none of the material is removed, this action is one of splitting rather than cutting. No other reports of research work on the cutting action of the diamond were found, and further work was considered justified and advisable. It is impractical, even if possible, to observe directly the cutting action of a diamond drill bit in rock; therefore it was necessary to devise an indirect method. It was believed that a study of the following three observations would lead to a better understanding of the cutting action: 1—the appearance of the minerals or rock surface in the bottom of the hole, 2—the size, shape, and other characteristics of the drill cuttings, and 3—the condition of the diamonds in the bit. The cutting action in a particular rock probably varies with bit pressure and speed. If the bit were slowly lifted off the rock, the effect of decreasing pressure might obliterate those bottom hole characteristics that are specific at the test pressure. Likewise, if the drill were stopped with the bit still in contact with the bottom of the hole, then decreasing speed effects would tend to obliterate the characteristics at the set test conditions. Therefore, in order to preserve those cutting effects impressed on the rock at test conditions, it seemed necessary to lift the bit off the bottom of the hole almost instantaneously once drilling conditions, i.e., revolutions per minute, pressure, and water flow became constant. In addition to observing the cuttings, the bit, and the bottom of hole, it seemed desirable to collect some quantitative data for purposes of correlation with the observations and for a record of bit performance. Consequently such data as revolutions per minute, force applied, and rate of advance of the bit were recorded. Six rock types, listed in Table I, were chosen for the tests. It was felt that these rocks had most of the variable characteristics of texture, bonding, and mineral hardness met in the common rocks generally being drilled. The sandstone was so poorly cemented as to be friable, even though most of the cement was silica. The limestone, though well cemented, was quite porous. Originally it was planned to conduct the tesk work with a full-scale drill unit, using EX bits, 7/8-in. core, 11/4-in. OD. The drill worked well, but was too cumbersome for rapid, accurate drilling of many short holes (1 ½-in.) in varied rock types. A new

Jan 1, 1954

By H. F. JR. Miller

(Butte Meeting, August, 1913.) THE major cause of the deterioration of the open-hearth furnace as its length of service increases, is the melting down, or rather the slagging, of the checker-brick, together with the deposition of dirt in the form of iron oxide, etc., which helps to close the openings, as well as to slag the brick by chemical action. Any construction that will do away with the necessity of having the waste gases come down through the checkers will eliminate the main reason for their deterioration. There are some other well-defined reasons which are subordinate to the main one given above. Some of the defects of the present type of regenerator chambers are as follows: 1. The checkers cannot be cleaned while the furnace is in operation, nor can they be cleaned at the end of the run without taking out all of the checker-brick. This causes high costs for labor and brick. The labor cost is high because all checker-brick have to be handled twice. The brick cost is high because many of the bricks are spalled in the double handling, rendering them useless because a spalled brick will not stand up. 2. The top courses of brick become coated with iron oxide, etc., melt clown, and large amounts of dirt are deposited throughout the checkers, especially at the bottom. The draft of the furnace is decreased by the closing of the top and bottom openings, especially the top ones, and the entire working of the furnace is affected. If an effort is made to clean the checkers the dirt and brick falling down into the holes still further diminish the draft. 3. The distribution of the air or waste gases through the checkers is in many cases uneven, resulting in a lower temperature of pre-heated air and therefore a slower working furnace. Also, the passage of air and waste gases is so crooked that sometimes the chimney is not powerful enough to overcome the friction.

Jan 6, 1913

Experiments on the Rate of Heat Transfer from a Hot Gas' to a Cooler Metallic Surface Members of the American Institute of Mining Engineers will be much interested in the subject of teat transfer from a hot gas to a cooler metallic surface, and although the book on this subject recently published by the Babcock & Wilcox Co., of New York, deals primarily with boilers, it contains a great deal of information which metallurgical engineers will find of great value. The book starts out with an introduction giving some of the current theories regarding this subject; it then describes in detail the experimental apparatus used, and the methods of conducting the experiment's and recording the data. Then follow some account of the determination of radiation losses in jackets and cooler; measurement of metal temperatures; detection and correction of errors; etc., concluding with a discussion of the results and derivation of corrective formula for heat absorption; heat pressure rate and specific heat of gas.

Jan 5, 1916

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 John C. F. Randolph

(Read at the Amenia Meeting, October, 1877.) Tits establishment being now in full working order, it has seemed of considerable professional interest to collect together, in a concise form, the various points as to its plan, method of dressing, and equipment. The data contained in this paper have been largely drawn from the able paper of E. Kutscher, constructing engineer. of the works, contained in the Zeitschrift fur Berg-Hütten-und Salinenuesen im Preussischen Staate, 1873, supplemented by some personal memoranda made while the works were under construction and by memoranda on the works appearing in various German technical papers from their completion up to date. This is probably the largest dressing works in the world devoted to the beneficiation of argentiferous lead ores, and it is doubtful if any establishment for the concentration of mineral of any description can compare with it in size. As showing the final practice adopted in an old and very conservative mining region, in which the concentration of ores has been a matter of constant practice and experiment for a very long period, these works are of peculiar interest. The fact that the Clausthal ores strongly resemble a very large and abundant class of ores found in the United States has always attracted the attention of American mining engineers and mine owners to the methods employed in dressing and smelting them. The study of their methods of concentration of ores has, however, always been full of difficulty,

Jan 1, 1878

By B. N. Whittaker, C. J. Bonsall

The paper gives an account of the factors influencing the stability of coal mining tunnels and goes on to examine various bases of support and lining design of such tunnels in relation to geological and mining conditions. The different types of coal mining tunnels are compared and comments made regarding the factors influencing their choice and basic design features. Foremost amongst design considerations is the design method and special thought has been given to the validity of different formulae as related particularly to UK Carboniferous geological conditions. Emphasis is placed on the role of the stress field in relation to tunnel stability. Shape of mining tunnel has been investigated and conclusions drawn regarding the merits of different commonly excavated geometries from a stability point of view. Detailed design aspects pertaining to determination of tunnel lining strength and resulting stability are critically examined and current design methods are compared. Data from UK mining tunnels are included as the basis for comparison of these design methods.

Jan 1, 1983

By Paul L. Russell

Of the potential applications of nuclear explosives to mining, excavation is perhaps the most obvious and the best understood, and probably the most practical for use in the near future. Large quantities of rock and earth can be moved by proper emplacement of nuclear explosives, but economic and practical relationship must be determined between the known capabilities of nuclear explosives and the required excavating to remove overburden. On an energy yield basis, even the cheapest of the present commercial explosives cost more than the most expensive nuclear explosive. Comparing the energy yield of a megaton thermonuclear device with the yield of TNT shows that one energy yield per dollar is 400 times greater for the thermonuclear device. However, small-yield nuclear devices (a few 10's of kilotons yield) are less efficient blasting materials than chemical explosives, with the result that the heat of explosion is utilized less effectively. While only 1 lb of conventional explosive is required to excavate 1 cu yd of rock, or about 2 million cu yd per kiloton, nuclear devices excavate from 100,000 to 300,000 cu yd per kiloton. This changes the economic situation, and it is thus apparent that nuclear explosives are cheaper only for the large explosions.

Jan 6, 1964

By Gerard Matthes

ONLY in recent years has any practical headway been made in the application of aerial photography to geological problems, and up to the present time its principal value to the geologist and mining engineer has been in "areal geology;" i. e., the study of formations as revealed at the surface. The object of this paper is to set forth briefly the principal advantages that may be derived from aerial photographic data in geological work and to serve in a measure as a guide to those who may be con-templating its use. Geophysical prospecting has for object the locating of mineral under the surface. Inasmuch as the geologist's chief complaint in life is a dual one-inability to see under the surface and inability to visualize comprehensively what he does see on top of the ground-geophysical prospecting coupled with aerial photography should do much to lessen his burdens. To what extent aerial photography can be made a useful adjunct to geophysical prospecting remains to be proved, but the inference drawn here is that it holds many alluring possibilities. To avoid disappointments, it should be stated at the outset that to the :geologist or mining engineer an aerial photograph or mosaic is only a tool, the effecient use of which he must set out to master. Upon his skill and ingenuity in applying it to particular problems will depend largely the value of the results that he will obtain. Under the most favorable conditions an aerial mosaic or even a few loose photographs, because of the exceptionally comprehensive oversight which they afford of field data, such as dips and strike observations at isolated outcrops, local indications of faulting, mineral and fossil finds, greatly facilitate study and correlation, save much tedious foot work, and may repay their cost many times. Even so, types of country may be found where the most, skillful use of the best of pictures will produce results so meager as to render the cost of aerial photography entirely unwarranted.

Jan 1, 1928

By J. C. Fisher

C. S. Smith has described a method for measuring the relative values of different solid-solid and solid-liquid interfacial tensi0ns. When a polyphase alloy is held at an elevated temperature, individual particles of each phase adjust their shapes and minimize the interfacial energy. Wherever three interfaces meet, the dihedral angles are such that the three interfacial tensions, considered as forces, are in equilibrium. When the angles between three forces in equilibrium at a point are known, it is possible to determine any two in terms of the third. In this way ratios of interfacial tensions have been .obtained. The value of a given interfacial tension ratio was found to be independent of the alloy system from which it was determined. Smith also has employed the method when one of the phases is liquid. When equilibrium is reached with respect to In the course of work on grain growth in high purity aluminum a simple optical method was developed for detecting the presence or absence of preferred orientation in annealed specimens. The specimens were prepared by grinding, polishing and "deep etching." The etching reagent used for high purity aluminum has been described.* The resulting etch pits produced selective

Jan 1, 1949

By Georges Ranque

THIS paper by. Georges Ranque is an attempt to reason out the conditions of formation and stability of inclusions and to establish an operative process capable of eliminating or minimizing them. The paper consists of two parts; one in which the author considers the laws of physical chemistry and physics that apply to liquid slag-metal systems and one in which he describes a practice based on the theoretical considerations. Such a paper is bound to contain controversial points and it is therefore your speaker's intention to present Mr. Ranque's side of the picture to the best of his ability without regard for any thoughts or criticisms of his own. RISING VELOCITIES OF INCLUSIONS Most nonmetallic inclusions have densities ranging from about 1.7 to s, while liquid steel has a density of about 7. Under these conditions, ferrostatic pressure should cause the inclusions, being lighter, to rise from the bath and be eliminated. This rising tendency is expressed by Stokes' law, from which may be calculated the rising velocity of a spherical particle in a liquid medium whose density and viscosity are known.

Jan 1, 1947

By J. Fred, Johnson

THIS TALK is a digest of some of the information contained in tables, one on practices and one on costs of shaft sinking, in Bulletin 357 of the U. S. Bureau of Mines written by E. D. Gardner, Supervising Engineer of the Bureau at Tucson, and myself. The table of practices contains information on 43 shafts and the table of costs contains information on 25 shafts. These various shafts were sunk between 1917 and 1930 so they may be termed modern practice with costs applicable in the United States, Canada and Mexico. In the compilation of this material the statistics on shafts which were concreted have been eliminated, as these figures were entirely out of line with corresponding figures for timbered shafts. It is my experience that where costs are divided between sinking and concreting the tendency is to load the costs onto the larger item of concreting. Thus a shifting of costs making an addition of 10 per cent in concreting costs may suffice to make a deduction of 40 per cent in sinking costs. Fine work is done (on the books) and everybody is happy. Most shafts are sunk with three shifts of men per day. Each shift consists of men who are miners, muckers, or timbermen, as chance may call for during their shift. Where pumping or high fixed costs do not necessitate three shifts it is cheaper to sink on two shifts. It is desirable for speed and economy in any case to work out a cycle of operations for each 24 hours. In this way men are hired for their ability as machinemen, muckers, or timbermen; they know exactly what to do and there is no passing the buck to the next shift.

Jan 1, 1933

By William L. Batt

IT IS becoming increasingly evident to management that it has other obligations than merely to earn dividends for stockholders. The head of one of America's largest organizations has stated it in these words: "There rests upon them a far broader responsibility than the mere production of goods and services, or solely the interests of their stockholders. They must assume the important obligation, through proper policy, of attuning industry to a rapidly changing world, from social as well as economic standpoints." Stockholders might as well reconcile themselves, therefore, to the fact that management cannot always put their interests first in the obligation of business enterprise: and that the legitimate requirements of customers and employees have acquired a new significance which must be recognized if the business of today is to prosper.

Jan 1, 1938

By B. C. Craft

Development and exploratory work in Mississippi during 1934 was rather active, resulting in the expansion of the proven area and the drilling of a number of important wildcat wells. Mississippi showed a decrease in drilling operations during 1934. There were 36 completions from 18 counties during this period compared with 58 completions from 22 counties during 1933. There was a considerable decrease in activity in the Jackson gas field in Hinds and Rankin counties with only 9 completions, resulting in 8 gas wells and 1 dry hole compared with 17 gas wells, 2 oil wells and 7 dry holes during 1933. Leasing and geophysical work was reported from several sections of Mississippi last year. Extensive exploration and drilling were carried on in Lamar, Hancock, Pearl River, Greene and Stone counties and on the flanks of the Jackson anticline. Exploration will be continued in these areas during 1935. Four important wildcats were completed during 1934, all of which were reported as being structurally high, but without having important shows of oil or gas. These tests were: Hix and Germany's, J. J. Newman Lumber Co. No. 1, sec. 21-4N.-15W., Lamar County, abandoned at 3520 it. in the Wilcox; United Gas Public Service Company's Davis No. 1, sec. 30-1N.-5W., Greene County, abandoned at 7439 ft.; Gulf Refining Company's May L. Williams No. 1, sec. 33-5S.-17W., Pearl River County, abandoned at 4800 ft.; and Clarke County Oil Company's S. B. Kirkland No. 1, sec. 10-2 N.-16E., abandoned at 4002 ft. in the Eutaw. Another interesting wildcat was Gulf Refining Company's Dantzler Lumber Co. No. 6, sec. 22-4S.-llW., Stone County, abandoned at 7700 ft. (according to reports below the Selma chalk). A total of 114 of the 132 gas wells completed in the Jackson gas field are still producing and have a combined open-flow capacity of 4,145,-696,000 cu. ft. Four of the abandoned gas producers were never connected to the lines. The open-flow capacity of three wells in the Amory field is approximately 1,000,000 cu. ft. Producing against a line pressure of 50 lb., the demand during December greatly exceeded the capacity.

Jan 1, 1935

By H. W. Gillett

BATTELLE Memorial Institute is an endowed in stitution for scientific research in metallurgy, fuels, and allied fields, established by the will of Gordon Battelle, 2nd, as a memorial to his father, Colonel John Gordon Battelle. Before I tell you more of what Battelle Memorial Institute is, I want to go back a bit and tell you why it is. Colonel Battelle began his services in the iron and steel industry in Wheeling in 1866 and in 1883 came to Ohio, where he successively engaged in the iron and steel industry in Cincinnati, Piqua and Columbus. The family had been prominent in Ohio affairs since 1788, when Gordon Battelle's great-great-grandfather came from New England to settle in Marietta. He was one of the pioneers and a member of the famous "Ohio Company."

Jan 1, 1929

In the January Bulletin a list was published of Societies' publications, magazines, etc., which were duplicates and were discarded at the time of-the consolidation of the libraries of the three Founder Societies. A second list published herewith includes text books which are duplicates and which will be disposed of about April 1, 1916, by the Board of Directors of the Institute through the, Library Committee.. If, meanwhile, members desire to secure some of these books, they are asked to communicate at once with the Secretary as. this is an unusual opportunity to secure books at an extremely low price. Airy, George Biddell.-Magnetism, London, 1870, Bd. Alberti, Friedrich von.-Halurgische geologic. Erster Band. Zweiter Band. Stuttgart, 1852, Bd. American Iron and Steel Association.-Ann. Rep. of the Sec'y. Statistics of American and, Foreign Iron Trades, 1877. Phila., 1877, Bd. Same, for year 1878. Phila., 1879, Bd. American. Telephone and Telegraph Co.-Ann. Rep. of Directors to Stockholders, 1911. N. Y., 1912, paper. Armagnat, H.-Induction Coils. Trans. by Otis Allen Kenyon, N. Y., 1908, Bd. Armstrong Cork Co. Insulation Dept. Nonpareil Corkboard Insulation. Pittsburgh, 1909, Bd. Associazione fra gli Industriali Metallurgici Italian.-The Metallurgic industry of Italy. Description of some of the principal works. Milan, 1911, Bd.

Jan 2, 1916

By Linda P. Bono

Some mining engineers are pursuing their destinies in places far removed from what they might have envisioned back in the classroom. The path they follow to work each day may wind down Wall St., Park Avenue, LaSalle, or Market; their offices are in modern skyscrapers which offer all the amenities-air conditioning, thick carpets, attractive decor, and executive lunchrooms, to name just a few. The papers on their desks are a combination of financial figures and feasibility studies. But even in these surroundings there are indications of what these men do and where their professional interests lie-minerals are everywhere, from vast collections to one symbolic paperweight. . . there are sometimes specks of dirt under fingernails from a recent on-site inspection, belying the traditional banker's garb. . . and there are the wistful comments about finding it necessary to get out in the field.

Jan 9, 1978

By Peter J. Szabo

INTRODUCTION The time period from the detailed feasibility study to the post investment audity usually ranges from three to eight years depending upon the nature of the mining project considered. It is the only after the post investment audit that we know the adequacy of the assumptions made concerning operational risk assessment in the detailed feasibility or acquisition economics. The post investment audit results from numerous mining projects can best be described by a verse by John Greenleaf Whittier's Maaud Muller. It reads "For all sad words of tongue or pen the saddest are these 'It might have been!"' Dissecting the negative results of numerous mining projects we find faulty assumptions concerning markets, geology, capital investment and operational risk assessment. Although in hindsight many of these assumptions could have been considered impossible or impracticle to have forecast with any degree of certainty, we find that refined assumptions concerning operational risk assessment could have been made with only a modicum of additional "Due Diligence". Anyone who invests in a mining property should employ a much higher discount rate of future cash flow, (usually in the minimum range of 25%-30%), than he would expect from such safe investments as Treasury Bills or high grade Utility Bonds. The nature of this steep discount translates to a large uncertainty concerning the timing and actualization of assumptions contained in the detailed feasibility study. We must remember that when a project gets beyond 20 years, any contribution to the value of the project of cash flow is minimal due to the nature of the discounting process. Thus for each full or partial day lost in the development or early operation stage of a project, the financial impact will be greater than similar lost days later on in the project. Adequate operational risk assissment is particularly critical when bidding on competitive tenders for coal deposists in remote locations such as the Bowen Basin in Queensland, Australia. Because of the market attractiveness of these coal deposits for supplying end users in the Far East, Middle East and Europe, state governments require competitive tender biddings via the Authority to Prospect process. Front end bonuses and super royalty payments must be commited before the actual mining conditions are known. Time to submit firm offers from the actual request for proposal vary from 90 to 120 days. Thus any operational risk assessment must be detailed, realistic and reflective of the actual project. When one searches the literature, one finds limited qualitative data on operational risk assessment in valuation papers. Usually this facet of valuation takes a secondary role to such areas as reserves, markets, and environmental considerations. When one comes to the question of operational risk assessment more often than not one finds the use of "rules-of-thumb", such as tons per man shift, average production, average seam height, etc., are used to forecast results on which banks and other financial institutions are required to make investment decisions. Because of the extremely competitive environment of the 1970's and 1980's numerous financial institutions approved loans without adequate "Due Diligence", and are currently paying a steep price in terms of non performing loans and charge offs. One must always remember that each operation is unique with its own characteristic

Jan 1, 1985