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By John D. Erickson

The concepts of long-range, open pit planning presented here are not new. The new idea is how the factors that control the location of the final pit limits can be considered altogether as one large, simultaneous equation. The X, or unknown quantity that is being solved for, is a long-range pit design that fulfills the desired objectives. The objectives of a final pit plan are determination of the extent and location of ore reserves, the allowable stripping necessary to uncover the ore, the final pit surface intercept, final pit topography and the contained metal values in both ore and waste.

Jan 4, 1968

By Charles M. Cooley

In these troubled times free enterprise is maintaining vital molybdenum output, while expanding plant, and bringing in new low grade ore reserves, at Climax, the world's largest known molybdenum deposit. Climax Molybdenum Co. is putting $25 million into additional surface plant facilities and other millions into underground development. The expansion program to be operating by 1954 includes a new mining level, crushing plant, 4000-ft conveyor, milling units, by-products plant, and housing for 198 families. Completion of this program and low grade plant will add 10,000 tons per day to present capacity and several million tons to ore reserves.

Jan 1, 1953

By Stephen Zorn

INTRODUCTION The process of financing mining projects in developing countries has changed greatly in the past 15 years. New methods of financing, notably the use of syndicated Eurocurrency project loans, have appeared, and direct equity financing by transnational mining corporations has become less significant. These changes are of particular importance to developing countries which have many mineral deposits still awaiting development, or even discovery. If major new mines are to be financed, host governments will need to obtain more sophisticated information than has hitherto been widely available as to the various sources of finance currently available and as to possibilities for innovative approaches to financing, such as the combination of several different kinds of financing in a single package. This paper reviews the major sources of mining finance potentially available to developing countries and highlights those problems in obtaining adequate financing that developing country producers have begun to experience in the last few years and that are likely to persist through the 1980s. Section I surveys the major types of mining finance; section II reviews specific financing problems, including (a) the withdrawal of the transnational corporations from developing countries, (b) inflation and the size of new projects; (c) developing country indebtedness, and (d) competition among projects in different countries. SOURCES OF DEVELOPING COUNTRY MINING CAPITAL1/ There is a wide range of financing mechanisms which are potentially available to developing countries with economically viable mining projects., Moreover, these financing mechanisms have not been fully exploited by developing countries, and more aggressive pursuit of financing by the governments of these countries may well reveal greater possibilities in respect of any particular project than may initially have appeared. However, virtually all the funds available from these sources are available only to projects which meet the standards of viability acceptable to lenders and others in the business community. If a project does not, for example, promise to generate a discounted cash flow rate of return of at least 15 per cent on total funds employed, or if it does not appear likely to generate sufficient cash flow in the early years of production to cover debt service requirements with a comfortable margin in reserve, most of the sources of financing will not be available. Only where a government has its own financial surplus (as in the case, for example, of the industrialization program of the Saudi Arabian government) can it effectively undertake projects which do not satisfy the definition of economic viability that is accepted at any given time by the worldwide financial community. Internal Sources In Developing Countries Internal financing capacity in developing countries is restricted to a relatively small number of countries - typically those large enough to support a well-rounded industrial sector, in which mining is only one of a number of dynamic industries. While there are large mining companies in certain other countries, the ability of such companies to finance new projects (or even, in some cases, to generate the cash necessary to maintain existing levels of production) is highly problematical. Within developing countries, the possible sources of internally-generated mining finance are the following: (1) state-owned enterprises; (2) private capital; (3) the banking system, and in particular those financing agencies that have a special involvement with the mining sector; and (4) direct budgetary appropriations.

Jan 1, 1985

By Dr. O’Neil Thomas J., Donald W. Gentry

"October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February." -Mark Twain Although the preceding chapters describe the type of preliminary evaluation frequently performed in the mining industry, it has been assumed that input data are known with certainty-clearly an enormous simplification. In reality, estimates of ore grade, mining cost, metal price, etc., are subject to varying degrees of uncertainty due to the inability to predict the future with much precision. Management would probably not, for example, be equally attracted to two projects each offering a 20% DCFROI-one for a new gold venture in Nevada and the other for an undersea manganese nodule operation in the Pacific. The high risk with the latter investment tells the obvious; there is more to investment decision-making than a deterministic analysis using "best estimates" of input parameters. The science of decision theory normally distinguishes between decisions under uncertainty, where probabilities of various outcomes are unknown; and decisions under risk, where such probabilities can be estimated. The first case is rarely en- countered in practical capital investment analysis in mining, so the remainder of this chapter focuses on that class of problems where rational probability distributions for the future states of input variables can be estimated. RISK IN MINING Risk in the context of this chapter is the unforeseen deviation of individual cash flows from expected values for a capital project. For a mining venture, the source of this uncertainty could be any number of factors relating to such items as ore grade, ore reserve tonnage, operating costs, product prices, etc. With conventional *Adapted from O'Neil, T.J., 1979, "Procedures for the Preliminary Financial Evaluation of Metal Mining Ventures," Computer Methods for the 80s, A. Weiss, ed., AIME, New York, pp. 556-573.

Jan 1, 1984

The following is an incomplete list of members and guests who called at Institute headquarters during the period May 10, 1919, to June 10, 1919. Victor C. Alderson, Golden, Colo. E. Fleming L'Engle, Joplin, Mo. H. Foster Bain, Washington, D. C. W. D. Mainwaring, Philadelphia, Pa. J. J. Beeson, Master Engr. Sr. Gr. W. G. Matteson, Fort Worth, Tex. Gunnar Bergstrom, Stockholm, Sweden. C. E. MacDonald, Toronto, Can. Corry T. Brown, Socorro, N. Met. Francis Nicholson, Charlotte, Va. Geo. W. Brymer, Scranton, Pa. Richard A. Parker, Denver, Colo. W. Burns, Santa Fe, N. Mex. S. B. Patteson, Jr., Allentown, Pa. H. C. Carlisle, The Pas, Manitoba, Can. G. W. Ponton, Ottawa, Canada. J. Carson Adkerson, Va. W. H. Reber, Ensign, Dallas, Tex. C. A. Cheney, Madison, Wis. T. C. Roberts, New York City. J. M. Clark, Toronto, Canada W. A. Rukeyser, Ensign, N. F. Corps. John J. Doyle, St. Louis, Mo. W. H. Staver, New York City. H. S. Emlaw, Grand Haven, Mich. D. B. Sterrett, Washington, D. C. E. Francis, Birmingham, Ala. T. V. Smirnoff, Russia. Rudolf Gahl, Denver, Colo. E. C. Templeton, New York City. Emit Gthmann, Baltimore, Md. H. A. Toblemann, Ajo, Ariz. A. B. Hardie, Philadelphia, Pa. Priestley Toulmin, Birmingham, Ala. Clarence M. Haight, Franklin, N. J. M. R. Walker, Baltimore, Md. N. V. Hansell, New York City. H. A. Wheeler, St. Louis, Mo. C. A. Heberlein, Nacosari, Mexico. D. B. Whitaker, Santiago, Cuba. Pierre Hines, Milwaukee, Wis. A. W. G. Wilson, Ottawa, Can. J. S. Hollings, Brymoba, Wales. Oba Wiser, Hanover, N. Mex C. Vey Holman, Maine. Harry J. Wolf, Denver, Colo. H. H. Howry, Denver, Colo. F. H. Wood, Mt. Vernon, N. Y. W. Spencer Hutchinson, Boston, Mass. J. P. Wood, New York, N. Y. W. B. Kunhardt, Reading, Pa. Lawrence Addicks sailed on May 17 for London; lie expects to be absent from this country for several months. Roy H. Allen has accepted a position in the research engineering department of the National Aniline & Chemical Co., Buffalo, N. Y. H. Foster Bain has gone to Shanghai, China, where he expects to remain for some time. Percy J. Bandy has accepted a position with the Cia. Minera del Mirasol S. A., at Cusihuiriachic, Chihuahua, Mexico. J. H. Batcheller is now with the North Midas Copper Co., St. Helena, Alaska.

Jan 7, 1919

By L. G. Margolin

INTRODUCTION In this paper we derive an expression to predict the onset of growth of a crack in a quasibrittle material. We employ an energy criterion, which was first proposed by Griffith (1920), and is essentially equivalent to the first two laws of thermodynamics. The criterion is applied to the elastic-plastic crack of Olesiak and Wnuk (1968), which is a three-dimensional generalization of the Dugdale (1960) crack. Our expression for the onset of growth differs in several respects from a criterion based on a crack in a brittle material (i.e., using linear elastic fracture mechanics) . Furthermore, the new features are in qualitative agreement with the experimental data. Among these new features are 1) the dependence of the apparent surface energy, or critical strain energy release rate on crack size (the shape of the R-curve); 2) the effect of in-plane stresses (i.e., the stresses that do not lead to any traction on the crack faces) on crack growth; and 3) a brittle-ductile transition. The energy criterion, as a necessary condition for crack growth, rests on a firm theoretical basis. However, its role as a sufficient condition is less secure. Several alternate criteria have been proposed as necessary and sufficient conditions for the onset of crack growth. We will contrast several of these, including critical strain (Olesiak and Wnuk, 1968; Goodier and Field, 1963) and crack opening displacement ("COD", Burdekin and Stone, 1966) with the energy criterion. We will show that these alternate approaches are inconsistent with the energy criterion, in the sense of being necessary conditions, and so should be rejected as criteria for growth--at least for the elastic-plastic crack.

Jan 1, 1984

By AIME AIME

A COMMITTEE of the American Railroad Association, consisting of Samuel Rea, president of the Pennsylvania System, Chairman; F. D. Underwood, president of the Erie Railroad; A. T. Dice, president of the Philadelphia & Reading Railroad; E. J. Pearson, president of the New York, New Haven & Hartford Railroad; and C. H. Markham, president of the Illinois Railroad (who was represented at the meeting by J. F. Porterfield of his system), met at the headquarters of the American Institute of Mining and Metallurgical Engineers, New York, on April 6 to assist in the Coal and Coke Committee's attempt to solve the bituminous coal problem. There was a full discussion of the questions of seasonal freight rates and the purchase by the railroads during the slack months of their winter's supply of coal. As the question of fuel supply for the railroads is in the hands of the Railroad Association, as well as the coal operators, it was vital that it should be represented at this important conference. The situation from the point of view of the mine operators was presented very thoroughly. No seasonal rates were considered necessary for the year 1920, and, as this matter requires considerable thought, it will be given thorough study and worked out in detail at a subsequent meeting.

Jan 1, 1920

By Hans S. Carlsson

Like most industrial processes, nuclear power production creates wastes, which have to be handled and ultimately disposed of in a safe manner. Some of the wastes contain very long-lived radioactive substances and have to be isolated for very long periods of time before they have decayed to harmless levels. Sweden, like many other countries with similar geology, intends to use crystalline rock for isolating the high-level nuclear waste from the biosphere. The suitability of a rock mass for a repository needs to be investigated extensively. Apart from the political and practical considerations for a site selection, a detailed study has to be performed in terms of geology, hydrogeology, geophysics, geochemistry and rock mechanics. The responsibility of the site selection studies in Sweden is entrusted to the Swedish Nuclear Fuel Supply Company, Division KBS (SKBF/KBS) . The paper gives a brief presentation of the "Standard Program" for the studies that will be carried out during 1980-1990. Modifications of the program are justified on the basis of gained experience or specific circumstances for each site. The program is compiled by the Geological Survey of Sweden (SGU) in cooperation with KBS.

Jan 1, 1982

By AIME AIME

THE Industrial Conference appointed by President Wilson has presented the following tentative plan for preventing or retarding strikes and industrial conflicts by proposing new Federal machinery for the adjustment of differences between employers and employees. Theplan is signed by William B. Wilson, Secretary of the Department of Labor, 'as chairman of the conference; Herbert Hoover, former Federal Food Administrator, as vice-chairman; Martin H. Glynn; Thomas W. Gregory, former Attorney Gen¬eral; Richard Hooker; Stanley King; Samuel W. McCall former Governor of Massachusetts; Henry M. Robin¬son; Julius Rosenwald; Oscar S. Straus; Henry C. Stuart, former Governor of Virginia; F. W. Taussig; William O. Thompson; Henry J. Waters; George. W. Wickersham, former Attorney General; and Owen D. Young.

Jan 1, 1920

By Mark E. Emerson

INTRODUCTION A long time has passed since geologists encountered encouraging mineralization in their regional exploration program for base metals deposits. Detailed drilling during the following two field seasons served to delineate the configuration of the deposit. Various statistical techniques were employed to provide confidence levels regarding the extent of the reserves and to categorize them according to whether proved, indicated or inferred. At this juncture, it appears that the company has an orebody. Time elapsed? - three years; money spent? - $2.5 million. Much remains to be done before the orebody becomes a mine. The company urgently needs to develop new orebodies to replace its existing mines which are being depleted. It therefore has expended sizable amounts in exploration, the life blood of the company. A staff of specialists is maintained to evaluate new projects and to conduct feasibility studies. The scale of new mining projects today is beyond the resources of most mining companies. Bank financing, therefore, is often vital if the company is to survive. The following scenario describes how a company goes about evaluating mine projects and what is needed to meet lender's criteria in securing the needed financing. MINE PLANNING Now that the company engineers have taken over the project, their concern is no longer with finding ore but in developing it. An exploration shaft has been put down and a tunnel driven into the orebody to verify, on a large scale, what has been seen so far only in pencil- like drill cores. A large tonnage bulk sample is mined and shipped off to an independent metallurgical process laboratory for beneficiation testing. The budget is expended to cover engineering studies. Preliminary capical and operating costs are developed in- house and profitability studies are made based or1 assumptions concerning the markets for the main product and the indicated gold, silver, and other by-products. Time elapsed? - four years; cost to date? - $3.5-$4.5 million. The staff prepares its own pre-feasibility study. After review, the Executive Committee authorizes management to proceed with full-scale studies. The task is to make preliminary designs and to develop definitive capital and operating cost estimates. Specialized consultants will be engaged to study slope stability for the open pit and rock strength if underground recovery proves more feasible. If it is near the sea, an oceanographic report might be commissioned to see if the tailings can be disposed of off shore. Environmental impact studies are commissioned from a firm familiar with government requirements and regulations in this important area. The company subscribes for an expensive multi-client study of the supply- demand-price outlook for the product to support its own long-range price forecast. Now all the numbers are available to make a definitive appraisal of the value of the project. Cash flow analyses and sensitivity studies follow. Reams of computer printouts are generated. Time elapsed: five years. Amount spent? - up to $9 million, depending on the size, complexity and attractiveness of the project. Marginal projects always take longer. Finally, an engineering and construction (E&C) company is given the task of integrating and compiling all the data into a feasibility study. The results of dozens of reports, memoranda, computer printouts, and charts are boiled down to one final summary report of a few hundred pages together with conclusions and recommendations. After thoughtful review at a board meeting, the directors authorize management to proceed with detailed engineering work - provided that

Jan 1, 1985

By J. O. CHESLEY

CURRENT widespread applications of aluminum in such industries as transportation, mining, and construction would have amazed the early proponents of its use, including Napoleon III, French Emperor Batik ill the middle nineteenth century, when aluminum was a precious metal, Napoleon had visions of making his army light and mobile through the use of aluminum for gun carriages, helmets, canteens, sabers, and similar articles. Whereas the emperor failed in his objectives, the modern Napoleons of industry have .been successful, and today aluminum finds its greatest applications wherever there is mass ill motion. Its lightness has made possible such modern marvels as the Union Pacific streamline trains, the Boeing and Douglas giant airships, and up-to-date mining equipment such as the new Calumet and Hecla mine skips.

Jan 1, 1938

By C. M. Marquardt

The minerals industry in general should bow in homage to the uranium milling industry. Those in the uranium milling industry have "spark- plugged" more progress in the application of instrumentation and control in the last 5 years than has been made in 50 years by the industry in general. Part of this real progress in the application of instrumentation and control has been born of necessity because milling processes are more complex. A lot of the impetus for instrumentation and control has come from the fact that the industry is new, the processes are new, and there are no hide-bound conventions to overcome. Part of it comes from the fact that much of processing is more chemical than metallurgical and the thinking of the process chemist has carried over into the plants. One need not elaborate on what instrumentation has done for the process chemical industries. Each new mill that is constructed, if of appreciable size, seems to employ more instrumentation than the previously completed plant. Plant A makes a break-through in the application of instrumentation to a particular part of the process and Plant B accepts this and goes one step farther, while Plant C, anticipating Plant B, makes two or three more steps before Plant B is entirely leveled out.

Jan 9, 1958

By S. H. Shepard

During the past year, a number of significant events have occurred in the nuclear industry. These include a surge in nuclear power plant orders, delays in nu- clear plant licensing and construction, increased environmental concern and the new Atomic Energy Commission nuclear fuel policy. These events, particularly the AEC stockpile release policy, have lead us to take this opportunity to update National Nuclear Corp.'s (NNC) appraisal of the outlook for the U.S. uranium industry.

Jan 10, 1972

By D. R. Shreve, L. W. Welch

An analysis for predicting the behavior of reservoirs exploited by a combined gas drive and gravity draintrge mechanism is presented. The method allows the prediction of gas-oil ratio, oil production rate, and cumlulative oil recovery for high relief pools in which pressure is maintained either by gas injection in the crest of the structure or by a combined gas and water injection program. The reservoir is represented by a model of communicating vertical prisms, with production or injection at the upper or lower boundaries of each prism. The theory of macroscopic gravitational segregation of two fluids within a reservoir is discussed in detail for all ranges of saturation. A description of an application of the analysis to a typical field problem is also presented. INTRODUCTION The importance of gravity drainage as a producing mechanism has become more evident during recent years. However, many of the reservoir engineering methods which have been used in the past for predicting the behavior of reservoirs producing by this mechanism have required such drastic, simplifying assumptions that the calculated performance in some cases does not resemble the actual pool behavior. The mechanism of fluid displacement in porous media has been described by Buckley and Leverett,1 and a simplified "one zone" method based on this development has been used by engineers to evaluate the performance of gravity drainage pools. Welge2 has modi- fied this approach so that the calculation time has been markedly decreased. In addition, many other authors3-9 have analyzed various phases of the gravity drainage producing mechanism during the past several years. In a high relief reservoir in which gravity may affect the recovery mechanism, there are two main types of exploitation programs which can be employed: 1. Reservoir pressure is maintained by injecting gas into the upper portions of the reservoir. In this case gas is not released from solution and, if dynamic pressure drops are small compared to the total pressure of the system, the gas and oil may be considered to be immiscible and to have constant fluid characteristics. 2. Reservoir pressure is not maintained and a "natural depletion" mechanism prevails. The term "natural depletion" can be used to describe the production history of a reservoir in which a gradual decline of average pressure and the associated release of solution gas continue throughout the producing life. In this mechanism gas is released throughout the reservoir and there is a continuous change in the characteristics of both the gas and the oil phases. It is the purpose of this paper to present the results of mathematical developments by which a method has been devised for evaluating the performance of reservoirs which are depleted by the first type of exploitation program discussed above. It should be mentioned that, although throughout the analysis gas and oil represent the two fluids existing in the reservoir, the method is equally applicable to gravity drainage in water-oil systems. STATEMENT OF PROBLEM In reservoirs of pronounced structural relief, where the closure of the oil section is great or the angle of

Jan 1, 1957

By R. V. Ramani, Y. J. Wang, R. Mishra

Abstract-The validity of the concept of mine resistance in ventilation systems is examined. Mine resistance is the proportionality constant relating the head generated by a fan and the quantity flowing through it when the fan is connected to a mine circuit. It is the total effect of all branches in the mine ventilation circuit. Its importance lies in the fact that for new mine projections, and in the extensions of existing mines, ventilation calculations are usually based upon adjustments of the mine

Jan 11, 1978

New equipment for seabed sampling, presently at the prototype stage, operates on the principle of diamond core drilling with wire line core barrels and is designed to drill cores from the seabed at depths down to 200 m with a continuous recovery of cores from an attendant vessel. The machine operates on the seabed by remote control from a console on the vessel. Neither installation nor operation requires the use of divers. Principal Applications Principal areas of application for the drill which is dubbed Maricor include investigation drilling in the continental shelf, mapping geological conditions before large drilling platforms are installed and exploring proposed undersea tunnel routes.

Jan 11, 1973

NEW MEMBERS. The following list comprises the names of those persons who became members during the month of flay, 1913: Members. BASTIN, EDSON S., Geol U. S. Geological Survey, Washington, D. C BUCHERER, Louis, Cons. Engr Apartado 1471, Mexico City, Mexico. BURDICK, CHARLES A., Min. Engr 74 Broadway, New York, N. Y. CARR, HOMER L., Min. Engr 109 W. 88th St., New York, N. Y. CARTER, RUSSELL S., Mech. Engr. & Asst. Gent Mgr., Ingersoll-Rand Co., 11 Broadway, New York, N. Y.

Jan 6, 1913

1944. Walter Hull Aldridge New York, N. Y. 1946. Peter M Anderson Johannesburg, South Africa 1946. Charles Camsell Ottawa, Ont. Canada 1946. Charles Augustus Carlow Fife, Scotland 1949. Erie Victor Daveler New York, N. Y 1946. Cecil H. Desch London, England 1946. William Fraser London, England 1917. Herbert Hoover New York, N. Y. 1941. Daniel Cowan Jackling San Francisco, Calif. 1939. Henry Krumb New York, N. Y. 1942. Essington Lewis Melbourne, Vic., Australia 1921. C. McDermid London, England 1944. Walter C. Mendenhall Washington, D. C. 1942. Paul Dyer Merica New York, N. Y. 1938. A. M. Portevin Paris, France 1934. T. A. Rickard Victoria, B.C., Canada 1946. John R. Suman Houston, Texas 1946. Wen-Hao Wong Chungking, China

Jan 1, 1952

1944 WALTER HULL ALDRIDGE New York, N Y 1946 PETER M ANDERSON Johannesburg, South Africa 1946 CHARLES CAMSELL Ottawa, Ont, Canada 1946 CHARLES AUGUSTUS CARLOW Fife, Scotland 1949 ERLE V DAVELER New York, N. Y 1951 EVERETTE LEE DEGOLYER Dallas, Texas 1946 CECIL H DESCH London, England 1946 WILLIAM FRASER London, England 1917 HERBERT HOOVER New York, N. Y 1941 DANIEL COWAN JACKLING San Francisco, Calif. 1950 ZAY JEFFRIES Pittsfield, Mass 1939 HENRY KRUMB New York, N Y 1942 ESSINGTON LEWIS Melbourne, Vic, Australia 1944 WALTER C. MENDENHALL Washington, D. C 1942 PAUL DYER MERICA New York, N Y 1938 A M PORTEVIN Paris, France 1934 T A RICKARD Victoria, B C, Canada 1946 JOHN R SUMAN Houston, Texas 1946 WONG WEN-HAO Chungking, China

Jan 1, 1952

By Kenneth L. Clifford, Thomas G. White

Many changes have occurred in lead-zinc milling in the U.S. since the 1970 Lead and Zinc Symposium. New mills have been built, novel flowsheets devised, and the use of process control techniques is increasing. The Missouri concentrators produced in 1976 more lead and zinc concentrate than those in any other state. The Tennessee mills produced nearly as much zinc concentrate in 1976 as Missouri and with some very highly developed flowsheets. Progress in the Western U.S. is centered around new operations in Colorado and Utah. New mills in New York and Missouri incorporate many of the newer control concepts. Most of the older concentrators have undergone flowsheet changes to accomodate different ore types or because of the availability of new and better equipment.

Jan 1, 1977