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By William L. Langdon

PRELIMINARY COMMENTS Recent years have been difficult for the mining industry, as reported in the most recently published Minerals Yearbook (Volume III), the estimated value of world crude mineral production has been generally declining since an historical peak in 1979 (16).* The costs of mineral extraction have, however, been rising rapidly. Individual project costs are, in general, exceeding the growth rate of mining companies, while operating and technical risks continue to increase (16). Risks resulting from currency flotation and political actions in the host country are also on the increase. Labor difficulties (such as those experienced by Phelps Dodge) and the Reagan Administration's recent rejection of a proposal by the International Trade Commission for higher tariffs and/or quotas on copper imports have also contributed to the mining industry's difficulties. The net result of these factors has been financial difficulties for mining companies with respect to paying for their current financial obligations as well as trouble finding new financing. It may be that one of the main factors in determining the future of the mining industry will be centered upon capital structure, i.e. how its assets are financed. Historical Perspective on Capital Structure In The Mining Industry As discussed by Isreal Borenstein in (4) and Thomas Navin in (7), mining firms typically have used a financial model based upon high financial leverage, i.e. large amounts of debt relative to equity. This has been especially true for American firms developing orebodies discovered overseas. Problems sometimes occurred for those who were forced to commit themselves to completion guarantees in order to obtain bank loans. Mines under these circumstances must be brought into operation regardless of market conditions. Politicians in overseas countries also may use the high profits required by these high risk ventures to argue for nationalization of mines. Coupled with the frequent use of high leverage, mining companies traditionally have paid out a higher percentage of earnings in the form of dividends than manufacturing firms. This is significant, in that such funds paid out in dividends are not available for other uses. Hence, a greater reliance upon debt and/or additional stock issues than would ordinarily be the case for manufacturing firms. Thomas Navin has stated in (7), that the theory behind the high dividend payout was that, "most mining investors thought of themselves as investing in a wasting asset, one that would gradually deplete over time until it ultimately became valueless." Investors, therefore, required a receipt, in the form of dividends, of a percentage of current earnings and a return on original capital. This view of reality, apparently, has not changed in some quarters, even though modern mine management ordinarily replaces depleted mines with new ones. It may be that this practice of high dividend payout coupled with relatively high financial leverage should be reexamined. Current capital structure theory could prove interesting and useful for those concerned with current conditions. Capital structure patterns and related practices in this industry are not, in many cases, congruent with those thought by some to be theoretically optimal. Prelude to Capital Structure Discussion With a few notable exceptions (such as the Guggenheims and Anaconda's chief operating,. officer in 1971) mining companies' chief executives and boards of directors have not been persons with financial backgrounds. This, one could conjecture, might have accounted for the relatively nonsophisticated nature of capital structures of mining companies. In order to appreciate the possibilities with respect to alternative influence on a firm's performance, one must be acquainted with the basics of financial theory. This paper is an attempt to familiarize the reader with (1) capital structure in general, (2) the usual components of this structure, (3) the general theory behind the use of financial leverage, and

Jan 1, 1985

By S. C. Miller, R. D. Carter, H. G. Riley

A merhod based on theoretical considerations is presented for estimating srabilized performance of gas wells from data obtained from short-term flow tests. Calculated results are presented for II gas wells evaluated with four-to five-hour flow tests. For seven wells on which comparison war available, satisfactory agreement between measured and calculated performance was obfained. Although the final results are favorable, diflerences in flow capacity k,h obtained from flow tests conducted at different rates were observed. This inconsistency did not seriously affect the calculated results in the test wells. INTRODUCTION In order to negotiate the sale of gas from newly drilled gas wells and to plan otherwise for the orderly exploitation of gas reserves, it is necessary to predict the long-term withdrawal rates physically possible for each well. Since low permeability gas wells do not stabilize except after a lengthy period of flow, the operator is unable, without wasting large amounts of gas, to measure directly the stabilized performance prior to contracting for sale of the gas and connecting the well to a pipeline. This problem is not new, but is one which has recently received considerable attention because of the rising importance of natural gas in the economy and new emphasis on the development of gas reserves. Thus, a method is needed for estimating stabilized performance from information obtained from short-flow tests in which stabilized flow is not attained. Such short tests would be suitable for wells not connected to a pipeline since the tests require only small amounts of time, labor and production of gas. Other requirements of such a method are short calculation time and use of a model of the gas well and its reservoir drainage area which is as consistent as possible with present theoretical, experimental and field knowledge. The method presented herein was developed in an effort to meet these requirements. It has been named the "two-Row method". In addition to the section on the evelopment and description of the method, a description of field application of the method and a discussion of well test results are in- cluded. Finally, there is a section on an additional consideration prompted by some of the test results. The Appendix contains certain details of the derivation of the two-flow method and a sample calculation for Test Well 1. MATHEMATICAL DEVELOPMENT AND DESCRIPTION OF THE METHOD The method is based upon the following assumptions: (1) The system can be described as a finite cylindrical gas reservoir produced by a single cylindrical well located at the center of the reservoir. Flow is strictly radial. (2) Flow obeys Darcy's law except very near the well where a quadratic flow law is assumed. (3) The system is also characterized by a laminar flow skin factor. The use of a quadratic or turbulent flow term is more fully justified in Refs. 1 and 2. When such a system is opened at the wellbore to constant rate flow from an initial condition of uniform pressure distribution, the radius or drainage quickly passes through the non-Darcy flow and "skin effect" region imrnediately surrounding the well. After the drainage radius or "transient" has passed beyond this region and before it reaches the external boundary, drawdown can be expressed by'." After the drainage radius reaches the external boundary, stabilized flow exists and drawdown is given by'," Eqs. 1 and 2 form the basis for the method. The validity of these equations will now be examined in the light of some well test data previously available. It has been found by actual measurements on gas wells that the relationship between drawdown and flow rate, that is the performance curve, is closely approximated by' Eq. 3 is a straight line on log-log graph paper. Eq. 2 and, for any lixed value of time, Eq. 1 plot as a curve which is slightly concave upward on log-log graph

By H. L. Overton, J. B. Lipson

The concept of sodium single-ion equivalent activity as developed by Gondouin, Tixier and Simard,' was used to determine the filtrate resistivity-activity relationships for 150 laboratory and 49 field drilling muds. With the exception of the native and phosphate high-resistivity muds and the calcium-treated muds, the filtrate resistivity-activity relationships were found to be within 20 per cent of that for pure sodium-chloride solutions. Gondouin, et al,* previously suggested a method of treating the high-resistivity muds in quantitative electrical log analysis. A new treatment is presented which uses the P-alkalinity of the filtrate as a correlating parameter in handling the calcium-treated muds in quantitative electrical log analysis. INTRODUCTION Gondouin, Tixier, and Simard in 1957 introduced new interpretive procedures for analyzing the self-potential curve of electric logging. They re-emphasized the previous work of the Schlumberger brothers, Wyllie and others, and re-defined the activity concept in terms of a number which they termed the effective resistivity. Their procedures are particuarly effective when the connate-water resistivities are less than 0.08 ohm-m or greater than 0.3 ohm-m. For gyp muds where the calcium content is known, a procedure was presented which allows calculation of the connate-water resistivity with improved accuracy. These procedures assume that one of the fluids in the system is a pure sodium-chloride solution, but they are not limited by the assumptions. For the fresh and saline connate waters, for instance, it is assumed that the drilling mud filtrate is a pure sodium-chloride solution. For the gyp mud interpretive procedure, it is assumed that the connate water is a pure sodium-chloride solution. Brown,' on the other hand, has suggested that it would be extremely fortuitous if drilling mud filtrates could all be treated electrochemically as sodium-chloride solutions, and he cites some examples where discrepancies exist. A study has been made of the deviations of sodium single-ion equivalent activities, an of drilling mud filtrates from that of pure sodium-chloride solutions. Drilling fluids in common use on the Texas and Louisiana Gulf Coast and laboratory-controlled muds were investigated. Using a cell patterned after Gondouin, et al, (Fig. I), the equivalent activities were measured. It should be remembered here that the activity measured is merely an index which uses numbers that represent the sodium single-ion equivalent activity a,., of the mud filtrate. The membrane potential developed across the cell was determined with a null-type potentiometer. The resistivities of the solutions were measured by the four-electrode method. The resistivity system was calibrated by using saturated KC1 solution as a standard. Chemical properties of the drilling fluids studied were measured with standard API-approved equipment for the particular property in question. For the activity measurements, two shale discs were chosen to serve as cationic membranes. These two discs were both 1 1/4 in. in diameter and, respectively, 1/4 and 1/8 in. in thickness. The membrane potential, Em, was determined using the shale discs as cationic selective membranes separating two standard sodium-chloride solutions of known mean activity. Then by comparing the constant Km in the following equation, with the theoretical value of — 59 mv at 75OF, the perfection of the membrane was determined. The variation of Km for the two membranes used in this experimental work, as well as one of the many unsuitable membranes, is shown in Fig. 2. The measurement of the activity of mud filtrate involves the balancing of its combined individual activities against a standard solution of known mean activity. At the point where there exists zero potential across the membrane cell, the activity effects may be assumed equal for all practical purposes. The mechanics of making a null reading of this sort requires having a large number of different mean activity solutions. A more practical method involves

By J. D. Doherty

That America's great coal deposits eventually will be our principal source of liquid as well as solid fuels is generally accepted. Moreover, the day when synthetic oil from coal will begin to supplement our petroleum supplies does not appear to be far off. The American petroleum industry has not spared effort or expenditure in its attempt to keep pace with the demand for oil, and recent production has exceeded expectations. However, the rapidly rising demand for liquid fuels plus the increasing difficulty of finding and developing the new oil needed even to maintain present production rates make it highly unlikely that oil from domestic wells can fully meet future oil requirements. Therefore, it appears that one or more of the following courses must be followed: 1. Curtail oil consumption. 2. Incr ase imports. 3. Develop new sources such as synthetic liquid fuels. All three courses may well be needed, as it is doubtful that any one of the three alternatives alone can satisfactorily solve the problem indicated by the prevailing trend in demand for oil. Curtailment of oil consumption is not a constructive policy, except where oil is being wasted or coal can be readily substituted as in stationary steam plants. Reduced oil supplies for most uses will curb our economic advancement and, in addition to inconveniencing consumers, will have a pronounced adverse effect on American industry. The oil-burner-manufacturing industry already has been dealt a hard blow. Shipments in the first 5 months of 1948 decreased 70 pct from those in the same period in 1947.1 The effect of a similar cut in the automobile industry can be imagined. A severe prolonged shortage of gasoline could seriously disturb our present economic well-being. It might be pointed out also that even the prospect of a shortage or lack of assurance for the future can discourage buyers of equipment, as occurred in the case of oil burners. An increase in our imports of oil seems to be a necessary expedient for the immediate future. Its advantages are that it will require a minimum of manpower and steel in a time of critical shortages and will conserve domestic reserves. Any major dependence upon foreign sources for our oil supplies should be avoided, however. Other nations are increasing their oil consumption more rapidly percentagewise than the United States and eventually will compete with us for the not unlimited world supplies. In peacetime, foreign countries might restrict ship- ments of oil to this country or impose exhorbitant prices. In the event of war, there is serious danger that such sources would be cut off, and American-developed oil fields overseas might even be used against us. Although synthetic fuels cannot relieve any oil shortage that might develop within the next year or two, an immediate start toward a substantial synthetics industry to supplement petroleum not only could help relieve shortages several years hence but also would help establish the much needed "know-how" for large-scale production. By assuring ample future supplies, such a start would permit sound planning by industries dependent upon oil and maintain or restore the confidence of prospective customers for oil-con-suming equipment. If it is agreed that domestic production of crude oil cannot be expected to meet future domestic demands, that oil rationing in general is undesirable. and that too great dependence on foreign oil should be avoided—and the weight of the evidence supports such conclusions—it is inescapable that commercial synthetic fuel production should be developed to supplement domestic petroleum supplies, which, of course, will furnish the bulk of our requirements for yean to come. Sources of Synthetic Oil The three principal sources of synthetic oil are natural gas, oil shale, and coal. A commercial plant using natural gas is under construction, and expansion of this industry is expected.

Jan 1, 1950

By R. E. Collins

The existence of fluid migration across fixed boundaries in oil and gas reservoirs has been known for many years. Several techniques have been developed in the past for estimating The rate of migration across fixed boundaries as an aid in planninng field development and in the valuation of oilfied properties. The principal de/errc7nt to the use of these techniques lies in the rather extensive reservoir and field data required for ca1cula1ion.s of fluid migration. For this reason, a new, simplified procedure has been developed which makes possible the calculation of fluid migration with a minimum of field and resrvoir data. This new technique is based on certain. solutions of the differential equations describing flour in the reservoir which assume, for the portion of the reservoir of interest, that the formation can be approximated by a homogeneous rock of uniforrn thickness, that only a Single mobile fluid phase exists, and {hut fluid production at the well is solely a result of expun.rioti of rile resersoir fluds. The results of the, present work are compiled in a set of curves. These curves can he used to calculate both rule and cummulative fluid migration when the abovc assumptions ore ju.r/ifiril. The only data required for such calcu1ations are the production hisrories of all wells in the field, the permeability and porosity of the reservoir., the, compressibility and viscosity of the fluid. and the shape of the reservoir, INTRODUCTION The migration of fluids across fixed boundaries in oil and gas reservoirs has long been recognized as an engineering and economic problem, but no methods for estimating the extent of migration during the development stage of a reservoir have been published. The investigation reported here has been directed toward providing a simple technique for estimating the extent of such migration and has therefore been restricted to the simple case of a homogeneous reservoir of uniform thickncss containing compressible liquids. It is assumed that only a single mobile fluid phase exists and that fluid production at the wells is solely by expansion of the reservoir fluids. Obviously, few, if any. reservoirs conform to these assumptions during their entire productive life. On the other hand, most reservoirs approximate fluid expansion reservoirs during their initial stages of primary production. Consequently, the present work should be applicable during the field development of most reservoirs, regardless of whether or not they ultimately are gas cap, dissolved-gas, or water-drive reservoirs. The mathematical analysis of this problem has been outlined in the Appendix, while the results of the investigation are presented in the following discussion. DISCUSSION OF CALCULATION PROCEDURE SLNGLE Well, Ini-iimite Reservoir The procedure for calculating fluid migrations is based on solutions of the partial differentia1 equations describing the flow of a homogeneous compressible liquid in a homogeneous reservoir of uniform thickness. This differential equation has the form of the well-known diffusion equation. The equation, as applicable to our problem, is where p is fluid density, is porosity, EL is viscosity, c is compressibility,* and k is permeability; .r, y and t are the space coordinates and time. Derivation of this equation is given in the Appendix. The analytical solution of this equation for a single well of negligible radius producing at a constant rate. q, from a reservoir of infinite areal extent for a time, 1. can he readily obtained. From this solution the rate of flow and also the cumulative flow across a straight line segment of length, 1, at a perpendicular distance. 6. from the well can be computed. One end of the line must be on the perpendicular joining the well to the

The experience of the Committee in connection with securing papers for the Butte meeting in August has shown that authors should begin early on papers contemplated for the New York meeting next February. So many papers come in at the last moment that it becomes exceedingly difficult to have them all read, indorsed, and delivered to the printer in time. Authors should remember that those serving on this Committee are doing so without pecuniary compensation, and it is hardly fair to expect them to devote so much of their time at the last moment from their private affairs. So many papers have to be sent back for corrections of one kind or another, that it is desirable that they be sent to the Committee at least three months previous to the date of the meeting. The Committee desires to be kept informed of contemplated papers on metallurgical subjects particularly. It is hoped that the Institute Transactions can be made an up-to-date record of metallurgical advance of all kinds. For the present, at least, the activities of the Committee include the refining and preparation of the non-metallic products such as phosphate rock, precious stones, cement, lime, gypsum, building stones, etc. Papers covering any of these subjects are desired. General papers covering geological, mining and metallurgical phases of an ore deposit can be sent either to this Committee or to one of the other Committees on Mining Geology or Mining Methods. C. W. GOODALE,Chairman. DARSIE C. BARD, Secretary.

Jan 8, 1913

By W. M. Weigel

The general term "sand" applies to a multitude of similar materials consisting of fine granular mineral. As usually understood, it means the ordinary natural product used for structural purposes and made up largely of grains of quartz. Quartz sand constitutes by far the greater bulk of the production, but there are other grades used for industrial purposes, such as molding sand, glass sand and many others, that may be grouped under the general name of special sands. Under this general group would fall filter sand, sand-blast sand, engine sand, potter's sand, abrasive sands of all kinds, sand for pulverizing, roofing sand, flooring sand, fire or furnace sand, standard sand, burnishing sand, sand for magnesium oxychloride cement-plasters and sand for chemical and metallurgical purposes. Sources of Supply Sand is a widely distributed natural product and even the better grades are low-priced commodities. For these reasons development has occurred near points of consumption where sand meeting the requirements is available. Some special grades, however, cannot be prepared from any sand bed and shipments are often made over considerable distances when the only developed deposit is remote from the consuming center. This is true of filter sand, sand-blast sand, sand for pulverizing and some of the others when chemical purity or grain size, coupled with the need of a properly equipped plant for preparation, are required. New Jersey is a large producer of filter, engine, sand-blast, fire, and pulverizing sand. Pennsylvania, and West Virginia produce special sands for pulverizing, fire sand, abrasive sand, engine sand and sand for chemical and metallurgical use. Ohio produces much sand-blast, fire and abrasive sand, and some filter sand. Illinois and Minnesota produce

Jan 1, 1926

By Frank C. Greene

The wildcatting in northern and northwestern Missouri, which started in 1939, was continued in 1940. Two new gas fields were found and one discovered in 1939 was further extended. The total number of completions was 94, of which 5 were oil wells with about 48 bbl. initial production, 30 were gas wells with an initial open-flow capacity of 37,655,000 cu. ft., and 59 were dry holes. The outstanding discovery was the Polo gas field, T. 55 N., R. 28 and 29 W., in Caldwell County. A sand now believed to be a lens in the Bandera shale at a depth of 400 ft. yielded flows of more than 12,000,-000 cu. ft. In all, I0 wells with 31,490,000 cu. ft. of gas, were drilled. The rock pres-sure is 80 lb. At present no arrangements for an outlet have been made. In Platte County, the Prairie Point gas pool in sec. 7, T. 51 N., R. 33 W., and sec. 12, T. 51 N., R. 34 W., and the Lake-side pool in sees. 5 and 6, T. 50 N., R. 33 W., were further developed, and in the latter both oil and gas have been found, but data are not available for publication at this time. Drilling for gas continued in proven areas in Clay County, and for both oil and gas in proven areas in Jackson and Cass Counties. Table 1 summarizes the results of drilling in Missouri in 1940.

Jan 1, 1941

By Frank C. Greene

The wildcatting in northern and northwestern Missouri, which started in 1939, was continued in 1940. Two new gas fields were found and one discovered in 1939 was further extended. The total number of completions was 94, of which 5 were oil wells with about 48 bbl. initial production, 30 were gas wells with an initial open-flow capacity of 37,655,000 cu. ft., and 59 were dry holes. The outstanding discovery was the Polo gas field, T. 55 N., R. 28 and 29 W., in Caldwell County. A sand now believed to be a lens in the Bandera shale at a depth of 400 ft. yielded flows of more than 12,000,-000 cu. ft. In all, I0 wells with 31,490,000 cu. ft. of gas, were drilled. The rock pres-sure is 80 lb. At present no arrangements for an outlet have been made. In Platte County, the Prairie Point gas pool in sec. 7, T. 51 N., R. 33 W., and sec. 12, T. 51 N., R. 34 W., and the Lake-side pool in sees. 5 and 6, T. 50 N., R. 33 W., were further developed, and in the latter both oil and gas have been found, but data are not available for publication at this time. Drilling for gas continued in proven areas in Clay County, and for both oil and gas in proven areas in Jackson and Cass Counties. Table 1 summarizes the results of drilling in Missouri in 1940.

Jan 1, 1941

AT THE dinner at the Cosmos Club in Washington, tendered to Herbert Hoover on Jan. 5, on the occasion of his retirement from the presidency of the Federated American Engineering Societies, he made an informal speech in which he pointed out not only the unique position which the engineer now occu-pies by virtue of the new Federated Societies but also the opportunity that is thus presented for national service. In this connection and in pointing out some of the reasons for the present economic maladjust-ment, Mr. Hoover said in part: This body has entered upon a path of public serv-ice that is unique in the whole United States. The engineer has devoted himself all these years to the upbuilding of the material values of the United States. He has done that effectively more effectively than-has been accomplished in any other of the great countries of the world. The birth of this society marks the evolution of the engineer into an interest in public affairs. With his intelligence, his experience and training and the unique knowledge that he possesses not only of the material but the intangible values among our people, he is now organized so that his united voice may become heard outside of his profession. We have probably 175,000 engineers in our country, representing an intellectual possibility for service possessed by no other group. It is therefore an augury of real social development when the engineers of the United States join together for purposes of public service.

Jan 3, 1922

By H. W. Hardinge

Disregarding for the present the economic side of a new device, let us turn to that feature of the conical pebble-mill which is of interest from a scientific point of view, and consider the device as a puzzle in which the theories of the cylindrical type of mill have been increased. Many articles have been written on the theory of the tube-mill, and explanations have been made which do not explain ; but these have evolved suggestions of practice which have resulted in changes in the tube as to length, diameter, feed, discharge, speed of rotation, rotation on hollow trunnions, rotation on rings, and changes in the operation as to quantity and size of pebbles, charge of load above or below the axis, crushing by causing the larger pieces of the material of the charge to act as grinders, whether crushing is abrasive or impactive, etc. The practical worker in crushing. is first interested in the endeavor to reach an econonlic means of accomplishing a desired end; but the improvements in crushing-practice have been largely left to the manufacturer of machinery, who, as a rule, has little, if any, knowledge of the specific requirements— such as granulation, sizing for concentration without pulverizing the metals, instead of pulverizing the rock or gangue; the metals being the more friable, while the rock is tough and not so easily disintegrated. A reversal of this practice is the aim of sliming direct for cyanidation or pulverizing for cement, etc. In the ordinary cylindrical mill, having a diameter of 4 or

Jan 1, 1909

By Bernard Schneider

The diversity of methods available to engineers and geologists for studying rock masses is a reflection of the fact that, despite the rapid and encouraging progress made over the last few years, there is still no unified and comprehensive method which can be used to predict the over- all behavior of a foundation. Nevertheless, it is agreed that the fundamental characteristic affecting the engineering properties of rock is fissuration, and this paper de- scribes a few new or improved methods of studying fissuration and its influence on major engineering factors such as permeability, deformability, or internal stresses in the rock volume. TESTS ON SAMPLES Conventional tests on samples using thin slices can be improved by staining the slices before cutting with certain ionic dyes which have an affinity for certain types of surface. This shows up the microdiscontinuities. For example (quoted terms are French trade names) : "Turquoise Motylhne JSA" will show up porous alteration of basic feldspars. "Vert brillant SA" is used for acid feldspars. "Fushine ASA" will show up voids in all rocks. A mixture of "Turquoise" and "Rhodamine BSA" will show up zones of alteration in all types of feldspars. With this technique, it is easy to make an optical classification of the different structural types, e.g.: (1) rocks completely free from voids; (2) rocks with microfissures, which in turn can be subdivided into (a) rocks with microfissures secant to the mineral structure, (b) rocks with microfissures parallel to the mineral structure, and (c) rocks with ran-

Jan 1, 1970

By R. O. Williams

The concept of biaxial pole figures which completely represent sheel textures is defined and an iterative least-squares solution given. The method has been applied to rolled copper, aluminum, and brass. The results show that the prior ideal textures are reasonably correct but incomplete. The major components in all three cases consist of a continuous range of orienta-tions roughly described as starting from (211) [111] continuing to (110) [112] to (110) [001], the details dif- THIS paper considers the problem of representing rolling textures in the most useful and comprehensible manner possible. A representation called a biaxial pole figure which completely represents such textures fering in all cases. For brass, in particular, the last part of the range is the most important. A minor cube component is established for the copper and aluminurn. The results were also analyzed by means of sets of three axial (inverse) pole figures to give similar, less-detailed results. The method of analysis is outlined. Such a representation is significantly less powerful than the biaxial method, but it has considerable utility in the calculation of anisotropic properties. is defined and an iterative least-squares solution is given. Such textures may be approximated by treating the principal directions as fiber axes to give three axial (inverse) pole figures. This representation is very useful for calculating anisotropic properties. New data for rolled copper, brass, and aluminum are given by both methods. In an axial pole figure the relative frequency or probability of a given physical direction (normally the

Jan 1, 1969

By John W. Vanderwilt

THE fluorescence of scheelite has been an important aid in recent years in the discovery and development of scheelite deposits. The use of fluorescence of synthetic compounds in industry, particularly in advertising, also has expanded greatly during the past decade. As a result, a number of new and convenient units for producing ultraviolet energy have become available, which have led to a greater application of fluorescence in the study of minerals. Studies have shown that the fluorescent color of a mineral may vary: (I) with the kind and quantity of trace elements, and (2) with the particular wave length of ultraviolet energy used. The wave length is dependent first on the type of generating equipment used, and finally on the filter employed to remove the visible light that may be present. A number of so-called ultraviolet lamps are listed and described, together with suitable filters known to be available. Scheelite fluoresces brilliantly with wave lengths of 2200 to about 3000Å., but not with longer wave lengths. The most convenient and efficient sources of ultraviolet for scheelite fluorescence- are portable and laboratory units designed particularly for use with scheelite. So-called ultraviolet light globes of the photo-flood type emit wave lengths too long to cause scheelite to fluoresce. Attention is called to the minerals that fluoresce in a manner similar to scheelite, which necessitates a check test by means of characteristic physical properties. Chemical tests are the final authority both for identity and content of tungsten in scheelite ore.

Jan 1, 1946

By T. S. Lovering

Geochemical prospecting extends the age-old method of searching out lodes with a gold pan and rationalizes the prospector's hunch that certain plants are associated with ore. It uses sensitive but cheap and rapid analytical methods to find the diagnostic chemical variations related to hidden mineral deposits. Exploration geologists can gain tremendous assistance from this new tool, although its optimum use is not simple. To bring out the geochemical pattern that reveals the presence of a hidden ore deposit with a minimum number of samples requires a combination of shrewdness, chemical knowledge, and exploration geology. The use of sensitive analytical methods for prospecting had its start in the 1930's in northern Europe, where Scandinavian and Russian geologists had some success in these early efforts. Very little geochemical prospecting was carried on in the United States at this time, and no sustained interest was manifest until the close of World War II, when geochemical investigations were started by the Mineral Deposits Branch of the U. S. Geological Survey. The purpose of these investigations was to apply geochemical principles and techniques to surface exploration for mineral deposits. Both the research on analytical methods and the routine trace analyses for field investigations were at first conducted by a single group, but it later became apparent that the trace analyses could be done by men of less experience than that required for successful research on methods. For the past several years there have been two groups of chemists, and although their functions overlap, three of the chemists are chiefly concerned with research, while four to six other men make the trace analyses for field projects.

Oct 1, 1955

By R. E. Gilmore

This paper is a revision of a former paper published in mimeograph form by both the Canadian and American coal classification committees, and is now presented for the purpose of acquainting those interested with the present status of coal classification in Canada. The classification employed for "Customs purposes" is detailed, and the classification schemes from which the customs classification was derived are reviewed and discussed. The activities of the Canadian coal classification committee, namely, the Associate Committee of Coal Classification and Analysis of the National Research Council, is also reviewed. Reserves, Production and Uses of Canadian Coals The total coal resources of North America are estimated to be 69 per cent. of those of the world, and of this portion, the distribution is 52 per cent. for the United States and 17 per cent. for Canada. Accordingly, Canadian coal resources amount to approximately one-third of those of the United States, and one-sixth of those of the world. As for the geographical distribution, the bulk of the known coal deposits are in the extreme eastern and western portions of the country. Employing the usual, more or less loosely defined, designations for the different classes and subclasses of coal, the distribution of the Canadian coal resources, according to provinces, is as follows: Maritime Provinces: Nova Scotia and New Brunswick Bituminous and semibitu- minous coals. Ontario (northern part).............................Lignite. Saskatchewan, (and Manitoba)....................... Lignite. Alberta and British Columbia........................ Lignites, subbituminous, all kinds of bituminous, semibituminous and semianthracite coals. Of the total reserves, roughly 92.5 per cent. is credited to the noncok-ing lower rank subbituninous and lignite groups, the bulk of which are

Jan 1, 1930

By Oscar M. Wicken

Industrial minerals - being the basic materials for much of the industrial activity in the world -suffer or gain in the market place with changes in that activity. The period 1970 and early 1971 has been one of little growth in many of the mineral-consuming industries, particularly those associated with building and construction. Consequently, the production of many commodities revealed little or no increase above 1969 levels. The pick-up of construction activity in the last half of 1971, however, is expected to be at an intensity which will result in an over-all good year; for example, cement shipments may, establish a record. Some industrial minerals products that bucked downward trends were those allied with the agricultural industry. Phosphate rock shipments increased, particularly from Florida which contributes over 400/c of the phosphate rock in the western world. Potash had higher sales and production for the third straight year, which means that inventories are being eased. The catch-all term of ecology is an oft-mentioned theme among industrial minerals suppliers. Specifically, the need for control of dust emissions is adding a heavy capital investment burden to many of the producers; such a burden, in fact, that plants have had to cease operations because the cost of dust collection equipment could not be born. As an order-of-magnitude estimate, dust collection equipment for cement plants can run $2-3 million for a single plant; some estimates are that the total cost of dust collection equipment in a new plant can be approximately 20% of total investment. All minerals processers have dust control expense of greater or lesser proportion.

Jan 1, 1972

By Elizabeth L. Robinson

INTRODUCTION The financial structure of the mining industry has changed strikingly over the last thirty years. The changes that have taken place in the last ten years include both the acceleration of adverse trends in familiar balance sheet numbers and ratios, and the subtle but extensive increase in the complexity and diversity of funding sources, both on and off the balance sheet. The objectives of this paper are: 1. to briefly trace the evolution of trends in the mining industry's financial structure; 2. to focus in more detail on changes in the last decade; and 3. to analyze those trends both within the framework of capital structure theory, and in the context of changes in business and economic conditions. This survey focuses primarily on the mining companies listed on the major U.S. stock exchanges, since financial data for these firms are readily available. The producers of minerals are a diverse lot, however, and the quantitative data on "the mineral industry" as characterized in this survey fails to encompass the financial arrangements for the bulk of production worldwide, whether owned by governments or private-sector enterprises. Even large portions of the U.S. minerals industry - subsidiaries of still larger firms, medium-sized privately-held companies, and the small miners - were not included in the quantitative part of the analysis. THE EVOLUTION OF THE INDUSTRY'S FINANCIAL STRUCTURE In the aftermath of the business failures of the Great Depression, most borrowers and lenders considered minimal debt on the balance sheet the soundest policy. By the 1950's, however, a body of literature was developing which demonstrated that the use of leverage could improve the value of the firm, given a corporate tax structure which allows interest, but not dividends, to be deducted from income. Optimal Capital Structure The objective of undertaking a new project is to improve the wealth of the current owners of the firm. If internally-generated funds are insufficient to allow growth at the desired rate, the company can raise funds either by issuing new equity, or by incurring debt. The most attractive source is the one which will provide the funds for the lowest cost. Both stockholders and lenders expect to receive compensation for use of their funds at a rate which reflects two things: (1) the return they could earn in alternative investments, and (2) the riskiness of the projected return. Factors which increase business risk include the variability of demand, sales prices and input prices, and "operating leverage", or the proportion of fixed to variable costs. In addition, from the investors' point of view, the use of financial leverage concentrates risk onto the shareholders, because lenders enjoy a prior claim in the event of bankruptcy. So although financial leverage can increase a project's expected rate of return, and therefore, presumably, earnings per share, too much debt will be perceived as uncomfortably risky by equity investors, and have a negative effect on stock prices. In theory, then, there should be an optimal level of debt which the firm's managers should seek to obtain in its financial structure. The desirable proportion of debt should in general be lower for a firm with a higher inherent business risk. In addition to their own judgement, financial managers are sensitive to the attitudes of lenders, rating agencies, and investment bankers in setting financial targets (Scott and Johnson). In practice, financial structure will also depend upon the company's growth rate and level of profitability, and conditions in the capital markets at a given time.

Jan 1, 1985

The following discussion was held on August 2.2, 1927, during the meeting of the Institute at Salt Lake City. It. IIIatch, Garfield, Utah.—The object of the meeting, I belicve, is to determine the proper chemical composition to insure long wear of a ball in a mill. This might also apply to rods. I feel that there is only one way of determining accurately the wearing qualitites of balls in mills, and that is by actually wearing out 400 or 500 tolls of different kinds of balls. Two things add to the wearing qualities of a ball: (1) the tenacity, with which the particular particles of iron or steel are cemented together; (2) the individual hardness of each partiele. My cxperience is that a ball that has a Brincll of 550 to 650 will give comparatively long life. There is considerable difference of opinion as to the best steel and iron alloys neressary to produce a satisfactory grinding ball. Some favor chrome, somr manganese and some nickel. Personally, I believe cast iron alloyed with chrome makes the best ball for small sizes; for large sizes (31/2 in. arid up) steel alloyed with mangancse is best. L. O. Howard, Pullman, Wash.—How would this method apply to hning? A. Kissock, New York, N. Y.—I do not subcrribe to that exactly. As I am connected with the Climax Molybdenum Co. you would hardly expeet me to. We have been much interested in trying to work out this grinding-ball problem and have spent a, great deal of thought and effort on it. As we are associated with the American Metal Co. and have a number of Proprrties of our own, we are in poaition to try our ideas on ourselves first. We have tried different compositions, but, have not done anything very remarkable with them yet,, except that we have been able to say that the combination of chrome and molybdenum has given the best, wearing ball. Mr. Hatch feels that iron is the best. medium for grinding, hut since toughtiess as well as hardness is a factor in wearability we feel that a well made steel is better for this purpose. Another difficulty with cast, or chilled, iron is lack of uniformity front day to day or from heat to heat, and the impossibility of protlucing balls free from blow or shrinkage holes which matcrially affect their life. If cast iron is made hard it becomes brittle and lacks strctc11 or toughness. This prevents its use in the larger sizes, aS break:lgc, is a sorious hantlic:~p to efficiency. We have trirtl hard and brittle balls and softer but very tough balls and have proved that maximum hardness, with sufficient toughuess to prevent hrcakagv, is the most important factor. in resistarnce of a steel to abrasion. It is well known that. chromium is one of the best hardening agencies for cither iron or. steel; and molybdenum is recognized as an clerment capable of introducing tonghness. In other words, the proper combination of chromium and molybdenum permits unusual hadness with still sufficient touglmess to stand up under severest impact. It is yet too early to give any actual mill results of this new Combination and though we are proving our ideas at our own properties we have to depend on others to help us make the data more general and more worth while and would like to get some testa 206

Jan 1, 1928

By L. O. Howard

R. HATCH, Garfield, Utah.-The object of the meeting, I believe, is to determine the proper chemical composition to insure long wear of a ball in a mill, This might also apply to rods. I feel that there is only one way of determining accurately the wearing qualities of balls in mills, and that is by actually wearing out 400 or 500 tons of different kinds of balls. Two things add to the wearing qualities of a ball: (1) the tenacity, with which the particular particles of iron or steel are cemented together; (2) the individual hardness of each particle. My experience is that a ball that has a Brinell of 550 to 650 will give comparatively long life. There is considerable difference of opinion as to the best steel and iron alloys necessary to produce a satisfactory grinding ball. Some favor chrome, some manganese and some nickel. Personally, I believe cast iron alloyed with chrome makes the best ball for small sizes; for large sizes (3 1/2 in. and up) steel alloyed with manganese is best. L. 0. HOWARD, Pullman, Wash.-How would this method apply to lining? A. KissocK, New York, N. Y.-I do not subscribe to that exactly. As I am connected with the Climax Molybdenum Co. you would hardly expect me to. We have been much interested in trying to work out this grinding-ball problem and have spent a great deal of thought and effort on it. As we are associated with the American Metal Co. and have a number of properties of our own, we are in position to try our ideas on ourselves first. We have tried different compositions, but have not done anything very remarkable with them yet, except that we have been able to say that the combination of chrome and molybdenum has given the best wearing ball. Mr. Hatch feels that iron is the best medium for grinding, but since toughness as well as hardness is a factor in wearability we feel that a well made steel is better for this purpose. Another difficulty with cast, or chilled, iron is lack of uniformity from day to day or from heat to heat and the impossibility of producing balls free from blow or shrinkage holes which materially affect their life. If cast iron is made hard it becomes brittle and lacks stretch or toughness. This prevents its use in the larger sizes, as breakage is a serious handicap to efficiency. We have tried hard and brittle balls and softer but very tough balls and have proved that maximum hardness, with sufficient toughness to prevent breakage, is the most important factor in resistance of a steel to abrasion. It is well known that chromium is one of the best hardening agencies for either iron or steel, and molybdenum is recognized as an element capable of introducing toughness. In other words, the proper combination of chromium and molybdenum permits unusual hardness with still sufficient toughness to stand up under severest impact. It is yet too early to give any actual mill results of this new combination and though we are proving our ideas at our own properties we have to depend on others to help us make the data more general and more worth while and would like to get some tests

Jan 1, 1928