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By James E. Chapman

The observations here presented are not those of an expert accountant, but of one who, while he has seen considerable service in the accounting departments of large companies, has spent more time in engineering and operating. This paper is intended to cover, in a measure, mine accounting for small mines, as distinguished from the elaborate systems, requiring many persons in the accounting department. I shall attempt to outline a system embracing the essentials of accounting, and simple enough in form to permit one or two persons to carry it on from month to month, in sufficient detail to be able to tell quickly the grade of ore, the prices received for metals, costs per ton for mining and milling, costs per foot for development, upward or downward tendencies in costs, ore settled or in transit, cash on hand, stocks of supplies on hand, efficiency of labor, etc. As in all accounting, there are two main divisions: that of revenue received for what is sold, and that of disbursements made for what is bought, so in mine accounting we have to consider chiefly the income derived from sales of ore or concentrates, and the expenses incurred in producing the said ore or concentrates in a marketable condition. I. Income The revenue of a mining company from the sale of ore or concentrates comes in the form of remittances, accompanied by settlement sheets made out by the buyer of the mine product, such as a smelting company. It is the duty of the mine accountant (or the person to whom this is assigned in connection with other work) to check these settlement sheets, against both the mine weights and assays, and the schedules of prices arranged between the mine and the smelter. As a rule, quotations for silver, lead, zinc, copper and other metals enter into the settlements, and require checking, as do also bills of lading. Each step of the arithmetical calculation is also checked.

Jan 1, 1917

By Cyril Jones

13.9-1. Introduction. Any mining venture or project is undertaken with a view of gaining some benefits, which, with the modern limited corporation, means earning a return to the stockholders for the use of their funds. Thus, any manager, when confronted by an opportunity of expending funds, must realize that the funds should generate a satisfactory return. The problem then becomes one of how the manager should best expend, if he should expend, funds for opportunities that become available to him. In the evaluation of a mineral property, or of a project within an operating mineral property, there must be cognizance of the fact that the final return is dependent on many factors that are not present in other industries. The primary factor in mining operations is the orebody, which has a diminishing life. This diminishing life gives the decision maker a range of choices; for by expending more capital for a larger plant, he can work the deposit out in a shorter period (16). This may, in fact, maximize the return on the investment. Alternatively, he may wish to maximize the total profits, a course which usually requires a lower capital investment and allows a longer working life for the deposit before final depletion. Other factors that have great importance in the evaluation of mining projects are the taxation treatment of mining profits from the viewpoint of depletion, depreciation, and investment credit. Investment opportunities involve expending funds at the present time in return for future benefits. These future benefits have a degree of risk in that the annual amounts of benefits and their duration cannot be fore- cast accurately. The treatment of risk in economic analysis involves the quantification of the degree of variability of the expected future benefits and also of the initial capital expenditure. This treatment in mineral exploration may be extended to cover the initial search for an orebody

Jan 1, 1968

By J. S. Wakeman

INTRODUCTION The primary purpose of comminution circuits in the mineral industry is to reduce an ore to a particle size that will permit separation of the valuable minerals from its gangue constituents. Wide variations in the mineral content and physical characteristics can and do occur throughout a given mineral deposit From the standpoint of their effects on the comminution characteristics of an orebody, these variations may not be identified by the normal sampling and analysis procedures utilized to delimit an orebody and to characterize its grade distribution. The proper design of a comminution circuit for a mineral deposit is very important to the success of that enterprise. It is also an expensive unit process both from the standpoint of capital and operating costs. It is, therefore, essential that any sampling program be designed to identify the variations that may occur that will affect this circuit. Because of the variety of comminution systems that are available, it is also essential that the sampling and subsequent evaluation program be sufficiently comprehensive to identify potentially inappropriate systems or flowsheets. It would be impossible to describe in a single chapter the techniques and approaches that should be utilized for sampling every type of orebody. Each orebody is unique and requires a sampling and testing program designed to its specific requirements for exploration, characterization and circuit design. The following is a general discussion of the guidelines to be used and considerations to be made in establishing such a program. SAMPLE SELECTION When sampling an ore deposit for the purposes of equipment and flowsheet selection for comminution, it is important that the sample composites for grind testing be chosen on the basis of how they will affect the comminution circuit rather than just how they might affect the subsequent metallurgical operations. For example, grindability, classification and liberation size characteristics are more important to the comminution circuit than ore grade. Mineral deposits may contain a multiplicity of ore types that can vary extensively in the dissemination of minerals and optimum liberation size requirements; and may also vary as much as 100% in ore hardness. The accumulation of samples for grind characterization should be done in such a way as to allow the identification of this variation. A proper mineralogical evaluation of the samples obtained to characterize an ore deposit can be a great aid in identifying the individual ore types within the deposit

Jan 1, 1982

By P. Sen, H. B. Barani, P. Sen Gupta

A critical review of the various separation efficiencies reported in literature has been made. Most of the relationships used for evaluating the performance relate to screening, classification, or concentration operations and are applicable to single-stage, two-component systems only. In the present work, a much simpler approach has been used for assessing the separation process irrespective of the type of operation and this has been extended further to obtain an expression for a multicomponent feed and multiproduct (from a multistage operation) system.

Jan 1, 1980

By Byron S. Gottfried, Guan Qi Zhao, John W. Tierney

Equations for predicting the performance of vacuum filters and centrifuges used for coal dewatering are presented. These equations are the basis for a dewatering module which has recently been added to the Coal Preparation Plant Simulator developed at the University of Pittsburgh under the sponsorship of the Department of Energy. The module provides for mechanical degradation in the centrifuge; loss of fines to centrate or filtrate; changes in size and gravity distribution; changes in ash and sulfur content; as well as final moisture content of the dewatered product. Inputs to the module are the flow rate of the coal to be dewatered, a washability analysis of the coal, and parameters describing the operation of the vacuum filter or centrifuge. Typical results obtained using the module are presented. There are adjustable parameters which can be varied to match plant operation or experimental data if desired.

Jan 1, 1983

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

TO THE, BOARD OF DIRECTORS OF THE AMERICAN INSTITUTE OF MINING AND METALLURGICAL ENGINEERS Gentlemen -The following report covers briefly some of the more important activities of the Institute during the year 1923. In my report for the year 1922, I drew attention to the falling off in membership of the Institute due to the depressed condition of the mining industry in several lines and the inability of many of our members to find profitable employment in mining or its associated branches. A number who were unemployed during 1922 established connections during 1923, but a still greater number have been forced to resign or drop their membership during 1923 Fortunately, the number dropped is not so great as in the previous year. The Employment Service conducted by, the four Founder Societies bears witness to the trend in business For the young men just out of college, there are plenty of opportunities at small salaries, there are plenty of opportunities for them as laborers; but for the mature members, those of experience, there are few calls During the last eighteen months, our Employment Service has been able to place only six of our members out of every hundred engineers for whom it has found work. Another loss which this Society has suffered, but which is not felt so keenly by our sister societies, is in its foreign members. The A. I M. E. has always had a large foreign membership, but of recent years exchange has been so heavily against many European and South American coun¬tries that a large number of members residing abroad have been compelled to relinquish their membership Almost invariably these members express keen regret because of the necessity that confronts them, and almost invariably the writers express hope that present conditions will not last long and that they will soon be able to ask for reinstatement. Having stated the darkest side of the picture first, it may now be drawn to your attention that in spite of these losses the number of persons applying for membership was decidedly encouraging. From the quality point of view, the membership has not gone back¬ward The Membership Committee has declined to recommend many

Jan 1, 1923

By W. C. Wright

A PRACTICAL program of education for workers of the mining industries is being formulated by the Federal Board for Vocational. Education in cooperation with the States in which this industry is a dominant one. The Federal Government last year passed a law, known as the Federal Vocational Education Act, that provides for the promotion of vocational' education and for cooperation with the States in the promotion of such education in agriculture and trades and industries and in the preparation of teachers of vocational subjects. More than 1,000,000 men in the continental United States are employed in mines and quarries. The following table, from the-1910 Census Report, shows the relative importance of mining and manufacturing pursuits: Manufactures Mines and Quarries Employees 7,405,313 1,109,410. Capital $18,428,269,706 $3,380,525,841 Value of product $20,672,051,870 $1,238,410,322 Of the more than 1,000,000 men employed in mining, almost three-fourths are engaged in the, production of bituminous and anthracite coal; one-fifth, in the production of copper, iron, lead, zinc, and other metals; and the remainder in getting out structural and miscellaneous materials from quarries. The meeting of the needs of the coal-mining industry, therefore, is the problem of greatest importance in the point of numbers to be served. Moreover, the dangers in coal mining are greater than in metal mining. Practically all States have set up educational and technical standards , for the position of foreman, boss, superintendent, etc., and every applicant for these positions must have a certificate of competency. The qualifications, too, are becoming increasingly difficult in the field of technical information. In some States, every miner must have a certificate, which is issued by the mine examining board. only after an oral examination.

Jan 1, 1919

By Philip W. Simmons

THE Colorado Plateau uranium province is in a mining boom rivaling the most colorful days of the early West. The application of scientific skills and the use of modern and novel mechanical equipment, however, is unique. No metal has ever received such concentrated effort from geologists and mining engineers. Moreover, no other metal has had the variety of tools available for finding and mining ores. Radiation detection equipment, bull- dozers, truck-mounted wagon and core drills, jeeps, airplanes, helicopters, tractor loaders, self -propelled 3-wheeled dump cars, front-end loaders and fleets of modern trucks are some of the present-day tools of the uranium prospector and miner. Because uranium is so vital to our national defense, the Atomic Energy Commission has offered many incentives for its mining. Through a series of circulars, the AEC has established base price schedules and various incentive payments. The incentive payments for acceptable ores from domestic mines are: (1) a guaranteed base price of $3.50 per Ib for ores assaying 0.20 pct U3O8 and more; (2) premiums based on grades above 0.20 pct U3O8 as for example, ores assaying above 0.50 pct U3O8 receive $1.00 per lb premium; (3) a development allowance of 506 per Ib of U3O8 contained in ores assaying over 0.10 pct U3O8 (4) an ore haulage allowance of 64 a ton mile for a maximum of 100 miles; and (5) an initial production bonus which may amount to as much as $35,000 in addition to all other payments. The producers have been guaranteed this policy until Feb. 28, 1957. The other four will continue until April 1962.

Jan 4, 1954

Albin, B. R Billings, Mont. '28 Amster, Nathan L 25 Broad St., New York, N. Y. '28 Bache, Jules S 42 Broadway, New York, N. Y. '28 Barrett, C. P 5338 Harper Ave., Chicago, 111. '28 Bayless, William S Russ Bldg., San Francisco, Cal. '28 Bean, Louis, H 60 E. 42nd St., New York, N. Y. '28 Beatty, Ross J Room 604, 6 N. Clark St., Chicago, III. '28 Benwell, Oswald F Hold Mags. '28 Beymer, Albert S., V.P., Keystone National Bank Pittsburgh, Pa. '28 Blumenthal, Hugo 44 Pine St., New York, N. Y. '28 Boettcher. Charles Ideal Cement Bldg., Denver, Colo. '28 Bowlus, Thomas H., Banker, Pres., Allen County State Bank Iola, Ran. '28 Brown, Colvin B Chamber of Commerce, Washington, D. C. '28 Burt, Maxwell Struthers Southern Pines, N. C. '28

Jan 1, 1936

Albin, B. R Billings, Mont. '28 Amster, Nathan L 25 Broad St., New York, N. Y. '28 Bache, Jules S 42 Broadway, New York, N. Y. '28 Barrett, C. P 5338 Harper Ave., Chicago, 111. '28 Bayless, William S Russ Bldg., San Francisco, Cal. '28 Bean, Louis, H 60 E. 42nd St., New York, N. Y. '28 Beatty, Ross J Room 604, 6 N. Clark St., Chicago, III. '28 Benwell, Oswald F Hold Mags. '28 Beymer, Albert S., V.P., Keystone National Bank Pittsburgh, Pa. '28 Blumenthal, Hugo 44 Pine St., New York, N. Y. '28 Boettcher. Charles Ideal Cement Bldg., Denver, Colo. '28 Bowlus, Thomas H., Banker, Pres., Allen County State Bank Iola, Ran. '28 Brown, Colvin B Chamber of Commerce, Washington, D. C. '28 Burt, Maxwell Struthers Southern Pines, N. C. '28

Jan 1, 1934

Albin, B. R Billings, Mont. Amster, Nathan L 25 Broad St., New York, N. Y. Bache, Jules S 42 Broadway, New York, N. Y. Barrett, C. P6338 Harper Ave., Chicago, Ill. Baum, Frank G Hobart Bldg., San Francisco, Cal. Bayless, Hon. William S Russ Bldg., San Francisco, Cal. Bean, Louis H., V.P., Dwight P. Robinson & Co., Inc 125 E. 46th St., New York, N. Y. Beatty, Ross J 1106 First National Bank Bldg., Chicago, Ill. Benwell, Oswald F 205 Colorado National Bank, Denver, Colo. Beymer, Albert S., V.P., Keystone National Bank Pittsburgh, Pa. Bingham, Charles W 1542 Hanna Bldg., Cleveland, Ohio. Blumenthal, Hugo 44 Pine St., New York, N. Y. Boettcher, Charles Ideal Cement Bldg., Denver, Colo. Bowlus, Thomas H Iola, Kans. Bragg, E. B Carmel, Cal.

Jan 1, 1929

By G. A. Baird

With the exception of eight wildcat completions, which were unsuccessful and abandoned, all of the 1935 new drilling was performed in the proven fields. As of Dec. 31, 1935, 22 drilling rigs were in operation, of which 9 were at wildcat locations and the remainder were being used in new drilling in proven fields; in addition, 25 workover rigs (exclusive of cleanout rigs) were operating, all in the major fields. Production of Crude Oil.—Notwithstanding the considerable decrease in new completions during 1935 as compared with 1934, crude production mounted to a new high of 148,893,225 bbl., clean oil at 60' F., representing an increase of 12,532,579 bbl. over the previous record year, 1934, total of 136,360,646 bbl. This increase was due: (1) to the flush production

Jan 1, 1936

By G. A. Baird

With the exception of eight wildcat completions, which were unsuccessful and abandoned, all of the 1935 new drilling was performed in the proven fields. As of Dec. 31, 1935, 22 drilling rigs were in operation, of which 9 were at wildcat locations and the remainder were being used in new drilling in proven fields; in addition, 25 workover rigs (exclusive of cleanout rigs) were operating, all in the major fields. Production of Crude Oil.—Notwithstanding the considerable decrease in new completions during 1935 as compared with 1934, crude production mounted to a new high of 148,893,225 bbl., clean oil at 60' F., representing an increase of 12,532,579 bbl. over the previous record year, 1934, total of 136,360,646 bbl. This increase was due: (1) to the flush production

Jan 1, 1936

NEW MEMBERS The following list comprises the names of those persons who became members during the period of May 10, 1917, to June 10, 1917. ANDERSON, JAMES P.,-Mgr. of the Mines of the Ringwood Co., 50 Church St:, New York, N. Y. BAKER; THOMAS C., Mine Supt., Cia. Santa Gertrudis, S. A. Pachuca, Hidalgo, Mexico. - BARCUS, W. J.. E., Min. Engr., Mining and Metallurgical Dept., General Chemical Co., 25 Broad St., New York,. N. Y. . BENNETT, GEORGE N.,.Min. Engr., Butte & Superior Mining Co., 616 West Gold St., Butte, Mont. BROCKMANN, GUILLERMO, Banker, Gmo. Brockmann & Co., Room 3115, 120 Broadway, New York, N. Y. BROWN, CLYDE L Mining, Box 703, Goldfield, Nev. BRUNSKOG, CARL W., Draftsman, Consolidated Arizona Smelting Co., Humboldt, Ariz. BURRELL,. OSSIAN C Mgr., American Zinc Co. of Tenn., Mascot, Tenn.

Jan 7, 1917

By E. H. Tenney

A DISCUSSION of the probable future use of coal for power develop-ment involves the study of several basic factors, such as future demand for power, the quantity and availability of fuels in direct competition with coal, the price of coal, and a closely related factor-the efficiency and cost of fuel utilization. Predictions based on purely statistical analyses of past coal con-sumption have definite limitations. For example, statistics showing the relation between coal utilization and total energy consumption from all sources between the years 1890 to 1930 indicate that during that period, the energy consumption per person in the United States increased five times, while the coal consumption per person increased only twice1, and there has been an actual decrease in per capita coal consumption since 1920. Figures such as these, compiled by authentic agencies, emphasize the need for caution in attempting estimates as to the future use of coal, and, incidentally, would seem to offer little basis for optimism in the coal industry. They also suggest the value of analyzing broadly the part played in the past by the related factors of power consumption, competitive fuels, coal prices and the efficiency of utilization. Proper weight must also be given in such a study to the present status and limitations of power-plant developments, and to the question of what the coal industry itself can do to further its own interests and influence the consumption of its product.

Jan 1, 1935

By Joseph A. Holmes

(Pittsburg Meeting, March, 1910.) AT the Mining Experiment Station of the U. S. Geological Survey, in Pittsburg, an investigation of the process of combustion is being carried on in a specially-designed furnace having an unusually long combustion-chamber. This work is conducted by a committee consisting of H. Kreisinger, mechanical engineer; Dr. J. C. W. Frazer, chemist; and Dr. J. K. Clement, physicist. The problem, essentially one of physical chemistry, is extremely interesting to all who are concerned in the burning of coal or the construction of furnaces. The main object of these experiments is to ascertain the relation between the amount of the volatile combustible driven from the coal and the combustion-spaces necessary to burn it completely. Our best steam-coals vary from 15 to 45 per cent. of fixed combustible. The greater part of the latter is burned on the grate; but the volatile combustible leaves the freshly-charged coal and must be burned in the combustion-space. If this space is not large enough, the volatile combustible will leave the furnace only partly burned, and the result will be a considerable heat-loss and a smoky stack. Strictly speaking, the factor which determines the completeness of combustion of the volatile matter, after it has been mixed with a certain amount of air, is the length of time the mixture is allowed to remain in the combustion-space; but this length of time depends on the extent of the space itself. Let us suppose, for instance, that, when a given coal is burned at a certain standard rate, the volume of the volatile combustible driven off per second is 10 cu. ft. Adding, say, 10 cu. ft. of air, the volume of the resulting burning mixture is increased to 20 cu. ft. If the combustion-space is 20 cu. ft., the burning mixture will stay in it,

May 1, 1910

By J. E. Schiller, S. E. Khalafalla

To improve technology for treating process water, US Bureau of Mines research has shown that magnesium oxide (MgO) has many advantages over lime or caustic soda for precipitating heavy metals. Sludge produced by MgO occupies only 0.2-0.3 times as much volume as the precipitate made wing a soluble base. While a settled, lime-formed precipitate is easily resuspended, the MgO-metal hydroxide sludge becomes cemented together on standing. Settling of the metal hydroxides from a dilute suspension is more complete than precipitates formed with other bases. Virtually any metal that can be precipitated by raising the pH can be treated using MgO. A three fold to fourfold stoichiometric excess of solid reagent is added. The mixture is reacted for five to 10 minutes. Polymer is added, and settling or filtration completes the process. Because of the greater cost of MgO compared with lime, large-scale practice of this technology will probably be limited to water containing 50 mg/L (3 gr per gal) or less of dissolved metals. For such dilute solutions, chemicals are not a large fraction of total treatment costs, so more desirable sludge properties might justify higher chemical expenses. While the MgO process is technically suitable for widespread application, the extent to which it is adopted will probably be determined by a trade-off between the greater cost of MgO compared with lime and the superior properties of the precipitates and their corresponding ultimate disposal costs.

Jan 1, 1985

By A. Bouillot, G. W. Luxbacher

In a reserve assessment in areas where multiple coal seams lie above drainage or outcrop and where mining options include contour, auger, mountaintop removal and underground methods, the mining technique (or techniques) selected are heavily dependent on both economic and technologic factors. Rapid and accurate calculations utilizing digital terrain modeling, structure isopacs and including factors such as minimum seam heights, reject limits and coal quality are of vital importance in mine planning. The ability to forecast mine development in a "what if" fashion is a powerful tool that now demands computer resources to reduce these time-consuming, often repetitive calculations. Island Creek Coal and Occidental Systems have developed a minicomputer based engineering workstation for local digitizing, plotting, and volumetric calculations to move the computing function from the computer room (with time sharing on a mainframe computer) into a more interactive environment, resulting in a gain in efficiency and productivity for the mine planning process. The workstation is connected to Occidental's mainframe computers allowing data transfer to the host for "CPU-intensive" calculations. This paper reviews the system configuration and describes the operations required for a typical mine planning application.

Jan 1, 1983

By Helen L. Cannon

BOTANICAL methods of prospecting for metalliferous ores are based on the premise that deposits at depth may be reflected chemically in surface vegetation. For the past several years, on behalf of the Atomic Energy Commission, the U. S. Geological Survey has investigated on the Colorado Plateau the application of botanical methods to uranium prospecting. Results suggest that orebodies may be found under a considerable cover of barren sandstone through the absorption of uranium and associated trace elements by plants growing at the ground surface. Plant physiologists have demonstrated that uranium is a necessary nutrient for plant growth and therefore is present in all plants.' The amount present is small but measurable. The absorption of uranium by plants growing over ore deposits forms

Jan 1, 1955