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By John K. Hammes

INTRODUCTION From the point of view of the consumer, the cost of mineral commodities might be viewed as the total price industry pays for mine output. Similarly, the mining company engaged in the ongoing business of finding, developing and operating new mines is concerned very much today with the distribution of all the revenue paid for mine output and not just with its direct or controllable cash costs. In other words, what will the labor force, the supplier of energy, explosives, and reagents, and the supplier of government services, management, capital, and the ore reserves receive for their contribution to production? A significant amount might be categorized as what economic theory classifies as economic rent. Mining companies are finding it increasingly difficult to negotiate concession or work contracts to develop ore reserves in lesser developed countries, just as they find themselves accused of taking excess profits in their own countries. The principal difficulty in reaching mutually satisfactory agreements in many cases is the difficulty in establishing an acceptable distribution of income, in particular the distribution of economic rent. (See Chapter 7). Further, it is logical that the decisions and policies of the interested parties be they government or industry should be and will be influenced by their competitive position relative to determining the distribution of economic rent. The raising of finance for a mining project today may be inhibited by too biased an extraction of economic rent by entities other than the risk takers, the mining companies. ECONOMIC RENT A British economist (Ricardo D. McGraw-Hill, 1955) first proposed the concept of economic rent (See Drechsler, H.D. earlier in this Chapter.) Ricardo pointed out that no rent would be paid until land became scarce. Ricardo also stressed the distinction that the price of farm produce was not higher because of the rent paid on farm land but that the rent or price of more fertile farm land was higher because the price of produce is higher. This led to the concept that economic rent is not a cost and that it is therefore not price determining, but is itself price determined. Economic rent may be viewed as a cost if cost is equated with the concept of payment or distribution of income to any factor used in production. However, if it is a criterion that a payment must be made to the supplier of the factor of production, then economic rent is not truly a cost because it is not necessarily distributed or "paid" to the supplier. Consider the commodity A which occurs in three grades: Al, A2, and A3. Any grade may be used as a substitute for another grade in all of the industrial uses of A. However, in industries X and Y the different grades have different productivities. Table 1 shows the relative productivities of each grade in industries X and Y, and in all other industries [~]. [ ]

Jan 1, 1985

By Charles E. Heinrichs

IN the last decade one of our oldest and largest non-metallic metallic mineral industries has been the subject of persistent technical research, the results of which are another example of the benefits following the systematic application of scientific principles. The consequent improvement in the technique of phosphate recovery represents the greatest material advance in the industry since the discovery of phosphate in Florida in 1881. Moreover, these successes have stimulated interest and development in numerous other nonmetallic industries. Strange as it may seem, and despite the fact that the phosphate deposits of Giles County, Tennessee, together with those of Polk and Hillsborough Counties, Florida, have yielded more than 50,000,000 long tons in the last twenty years, the mineralogy of phosphates has been given scarcely any space in our technical literature. For many years it was the general consensus that these so-called phosphate rocks represented a physical mixture composed principally of tri-calcium phosphate, together with smaller quantities of calcium carbonate, calcium fluoride, iron phosphate, aluminum phosphate and other less important constituents. More recent investigations, however, led to the conclusion that these phosphates really represent a complex mineral in which calcium, iron, aluminum, phosphorus pentoxide, carbon dioxide, and fluorine all form a definite part of the molecule. Colony, after a careful study, utilizing chemical, microscopic, and X-ray diffraction methods, reported that American phosphates consist principally of calcium-carbono-phosphate of the staffalite type.

Jan 1, 1933

By E. Mcl. Tittmann

Deep-seated human instincts urge us to positively mark the passage of time. We celebrate the passage of each year. Years give way to decades, and decades to half centuries and centuries. At all these mileposts we are inclined to pause, take a look around and catch our breaths before embarking on the next leg. We are at such a point now and this meeting I am sure will give direction to the road ahead into the decade of the seventies. In looking around at this point, 1979, it is obvious to all of us that the environment in which we must mine, mill, smelt and refine lead and zinc has radically changed. These changes have, of course, occurred over a long period of time. They have, however, all been in the same general direction. They have all had the same motivation. The period of greatest contrast is probably the fifteen years just before World War II and the fifteen years following the end of that war. I thought that I might review briefly with you what seems to me to be four of the more important changes that have developed since World War II that profoundly affect our activities in the lead and zinc industry. I mentioned before that all these changes have been in the same direction; that is, they have all tended to restrict our freedom of action in pursuing our objective of producing lead and zinc on a competitive basis at a profit. Consequently, in discussing them you may think that I am merely viewing with alarm. This is not the intent. This is merely supposed to be an objective analysis. I think it appropriate before discussing these trends in detail to examine the position of lead and zinc today.

Jan 1, 1970

By E. Mcl. Tittmann

Deep-seated human instincts urge us to positively mark the passage of time. We celebrate the passage of each year. Years give way to decades, and decades to half centuries and centuries. At all these mileposts we are inclined to pause, take a look around and catch our breaths before embarking on the next leg. We are at such a point now and this meeting I am sure will give direction to the road ahead into the decade of the seventies. In looking around at this point, 1973, it is obvious to all of us that the environment in which we must mine, mill, smelt and refine lead and zinc has radically changed. These changes have, of course, occurred over a long period of time. They have, however, all been in the same general direction. They have all had the same motivation. The period of greatest contrast is probably the fifteen years just before World War II and the fifteen years following the end of that war. I thought that I might review briefly with you what seems to me to be four of the more important changes that have developed since World War II that profoundly affect our activities in the lead and zinc industry. I mentioned before that all these changes have been in the same direction; that is, they have all tended to restrict our freedom of action in pursuing our objective of producing lead and zinc on a competitive basis at a profit. Consequently, in discus- sing them you may think that I am merely viewing with alarm. This is not the intent. This is merely supposed to be an objective analysis. I think it appropriate before discussing these trends in de- tail to examine the position of lead and zinc today.

Jan 1, 1970

By Richard Franchot

From an efficiency viewpoint, the greatest loss of energy to the blast furnace is in its failure to convert more than about a third of the coke carbon from carbon monoxide to carbon dioxide. This result has usually been ascribed to a necessity of a 2:1 excess of CO in order to reduce iron. It has, however, been proved that iron is completely reduced by equal volumes of carbon monoxide and carbon dioxide. Hence there is room for the hypothesis that vaporization, as cyanid, of accumulated alkalis is a serious primary factor limiting the ratio of ore to coke. Observed cyanid vapor concentrations and those measured by the variations of the nitrogen-oxygen ratio in the hearth gases form the basis for a quantitative explanation of the furnace action. As EVERYBODY knows, the blast furnace is a gas producer. As to the reason for this, people are not so well agreed. The significance of the fact is obvious, for the extent to which the fuel leaves the furnace as combustible gas measures poor economy in iron smelting; while good efficiency in this respect means poor gas. The furnace thus works at cross purposes. The present trend of the steel industry is toward. a primary use of the blast furnace as a gas producer with pig iron as a byproduct. Needless to say, this trend is away from improvement in iron making. The production of more and better iron in a given furnace consuming a given amount of coke would seem, at least, to involve a decrease in the relative proportion of the combustible gas. The possibility at the same time, however, of making more and better gas need not necessarily be excluded. (The more the furnace acts as gas producer, the bigger is the sulfur problem.) Whatever the object, it would seem desirable to have a, clear, comprehensive, mathematically exact estimate of why and how the blast furnace functions, to the large degree that it now does, as a gas producer. The literature does not give a definite answer to the question. That for which explanation is sought is the fact that only a minor part, usually not more than a third, of the coke carbon burned is oxidized to carbon dioxide; that the development in the furnace of the fuel energy is thus limited usually to little more than 50 per cent.; that it requires about twice as much fuel coke to make a ton of iron as is indicated by the rela-

Jan 7, 1925

By Paul M. Tyler, Carle R. Hayward

DOES it pay to do really good work? Quite likely the practical millman will answer that it does not. The preparation of ores for market is primarily a business enterprise, and by and large the individual operator does not bother his head about squandering our national resources or making easier the job of the smelterman. Having accepted such ore as he may get fro111 the mine, his job is to make the best possible showing with his mill fro111 the standpoint of financial return. His success is measured in dollars and cents, and he has no rightful reason to expect more than scant acknowledgment of any other achievements from the stock- holders of his company who in the last analysis are his employers.

Jan 1, 1936

By Arno C. Fieldner

PROBABLY no large industry in the United States is in greater need of technologic research leading to economic improvement than the coal industry. It has suffered severely from increasing substitution of petroleum and natural gas for coal and its products in the fuel markets. Part of this substitution is due to the greater convenience and suitability of liquid and gaseous fuels for special purposes, and part of it has been due to the extensive research programs conducted or sponsored by the petroleum and allied industries in the past 2 decades. A recent estimate1 places these expenditures at $100,000,000 a year.

Jan 7, 1951

By HILAND BATCHELLER

COMMENT on the economic significance of the special alloy steels seems inevitably to reduce itself to an attempt to peer into the future of the industry in which we are interested. We are all familiar with the historical development of iron and with the almost complete replacement of iron by steel. Those who have been connected with the industry since its .early days have had the satisfaction of witnessing the greatest industrial development the world has seen. As the cartoonists of the muck-raking decade liked to picture steel as an ogre armed with a spiked club, his hands reeking with blood and with golden coins dripping from his pocket, fiercely seeking for more widows and orphans to devour, I choose to call on my imagination to create a gigantic but beneficent robot of such marvellous mechanical skill. that it quickly transforms millions of tons of otherwise worthless material into the infinite variety of useful products which are so largely responsible for our present civilization.

Jan 1, 1931

By AIME AIME

AT the end of September, ' the metal-producing industries were almost prostrate, the production of fuels was largely curtailed, there was a fair degree of activity in general manufacturing, while retail trade was moderately good. Looking at industry on the whole, there was a large percentage of unemployment, the degree of which has increased, progressively, month by month since the beginning of 1921. There is the prospect of much destitution and misery this winter; yet while' in some, quarters, idle workers are already being fed from, commissaries; in other quarters profligacy; in "spending continues, unabated. Amid this confusion in conditions there is;' much that appears paradoxical, but in fact it is not so and indeed everything is running pretty true to form: Such activity in production as there is to be seen is mainly in textiles; - leather goods, foodstuffs, etc., i.e., consumption goods for immediate use. Even in hard times 105,000,000 people must buy a good deal of clothing and food. Besides this there is indispensable repair work and- maintenances. Thus, the good business of the year in white lead for painting. The chief uses for the metals, however, are in the production of capital goods, and except for occasional and special reasons nobody in his senses is capitalizing anything at present prices for labor. Hence several millions of men are idle. The impoverishment of Europe and the exhaustion of her credits adds to this by curtailing our export trade.

Jan 1, 1921

By Walter Renton Ingalls

IN SEVERAL papers and addresses during the past two years, I have dwelled upon some of the economic consequences of the war. The fundamental thought that I have sought to convey is that the world became immensely poorer by the war, not only in material wealth and population, but also in the psychology and morale of the people. I do not see how there can be any intelligent dissent from that statement. All the ideas of post-war prosperity were manifestly fallacious, manifestly fallacious from the outset. If there had been any truth in them it would have followed logically that a great war, with all its destruction of wealth, health and life would be a good thing. Therefore, let us have a great war every ten years or so. Such an idea would be both monstrous and absurd. Assuming then the acceptance of my premise, I have tried to show that the losses by the war could be made good in a short time, i.e., in a relatively short time, only by doing things a great deal better than formerly, and that the accomplishment of such a result called for greater transparency in industry, for industrial cooperation, for thinking in terms of industries as a whole, and for the greater exercise of engineering functions. All of this introduced, of course, the position and psychology of labor. I say frankly that I do not look for labor to contribute any constructive thought to the upbuilding. I neither expect it nor hope for it. This is a pity, for it could do so much for its own economic advancement if it would. However, it never has done so, but rather has benefited only from the exercise of the talents of the few, and the main hope now is to bring it into a passive state, dispelling the resistive fallacies that developed during the war. Let us briefly examine the nature of these.

Jan 1, 1921

By W. A. Forbes

OUR present-day geological surveys show that 36 of our States are underlain with bituminous coal, covering a total area of 496,709 square miles. The North American continent possesses 69 per cent of the world's coal reserves, with the United States alone having an estimated 55 per cent. The American coal reserves, in tons, are calculated to he about 3,500,000,000,000 tons, of which we have exhausted about 1 to 1 1/2 per cent. If this coal were mined at the rate of the 1918 production-a record output of 579;000,000 tons-it would not be depleted for 4,000 years. The more easily accessible and high-grade coals would obviously be consumed much before this; some estimates are 100 years. The natural progress of the nation's industries up to 1910 encouraged on every hand the development of new mines, especially where cheap and easy access to coal measures was coupled with short hauls to the consumer. Over-development resulted, which is perhaps today one of the fundamental causes for the many difficulties faced by the coal industry, which is highly competitive; about 70 per cent of the production cost is labor. Salient statistics for 1930, recently issued by the U. S. Bureau of Mines, follow:

Jan 1, 1932

By Joseph E. Pogue

NEW economic forces are at work in the petroleum industry.. In order to visualize these forces and clearly see their bearing on the producer, refiner and marketer, it is necessary to see in perspective the economic evolution of the business. For several decades prior to 1913 the outstanding feature of the petroleum industry was a trend toward integration, culminating in a huge combine, the Standard Oil Co. An important aspect of this integrative trend, however, was its concentration on the combination aid control of refining and marketing, leaving crude oil production, for the most part, to the exigencies. of small-unit competition. It is a noteworthy coincidence that during this era the law of oil and gas was formulated and applied, whereby these substances had to be reduced to possession to establish ownership; and the forces of competition in crude oil production were thereby intensified. It was to the interest of an industry, safeguarded in its control of manufacturing and markets, to have supply stimulated by legal convention as well as by individual initiative in order that the growing demand could be met without interruption. And so over-production of crude oil during this era was no handicap, but rather an aid, to the progress of the industry.

Jan 1, 1929

By Bedrand L. Johnson

THE phosphate-rock industry is built upon natural deposits of rocks and minerals in which the element phosphorus is present as a phoshate. The term ?phosphate rock? is a general one, applied to certain rocks of different degrees of consolidation and of diverese origin, charater and occurrence, composed of intimate mixtures of several phosphate minerals, largely submicrocrystalline, usually calcium phosphates, in commerical quantities, with various impurities. This term includes phosphatized limestones, sandstone, shales, and igneous rocks; nodular phosphates ; residual weathered phosphatic limestones ; vein phosphates ; and phosphatic sediments, both consolidated and unconsolidated.

Jan 1, 1944

By C. L. HUNTZINGER

THE mine here described is in the Witbank district, a coal area of the Transvaal, about 100 miles north- east of Johannesburg. and is owned by the Witbank Colliery, Ltd. The plant has a capacity of 4000 tons per eight hours, and prepares five sizes of coal. The coal seam lies at a depth of about 200 ft. below the surface, and is reached by an inclined shaft sunk at an angle of 18° with the horizontal. Although the thickness of the coal seam varies from 10 to 14 ft. or more, only about a 7-ft. bench is mined. Mining is by the hord and pillar system. Bords are driven 18 ft. wide, with pillars measuring 18 ft. square. The mine is laid out into four sections, each sewed by a main haulage way from the shaft. Arc-wall machines are used for cutting the coal. but all loading is done by hand. Native labor is employed under the supervision of white miners, who do the required blasting. The workings are practically free from gas and water, and very little timber is needed.

Jan 1, 1931

By John A. Church

AT a time when the treatment of gold and silver ores by fusion, in opposition to the mill-process, is attracting so much attention in this country, it may be useful to consider what is done in a well-conducted foreign work. For this purpose I will ask the reader to accompany me to Lend, in Austria, a small but thoroughly organized

Jan 1, 1873

By Ellsworth Daggett

THE ore smelted in the Winnamuck furnace during the year 1872 consisted, for the most part, of oxidized ores from the Winnamuck mine, only sixty tons of outside ore (from the Spanish mine) having been smelted. The latter, like the principal Winnamuck ore, was oxidized or so-called carbonate ore. There was mixed with these oxidized ores three hundred to four hundred tons, or 7 to 10 per cent. of galena, some of which was mined with the oxidized ore, while a part was mined separately from the lower portion of the mine, and afterwards mixed with the ore, with a view of preventing the formation of deposits of metallic iron in the furnaces. The average assay in silver of all the ore handled was 51.46 oz. per ton, most of it existing as chloride of silver. The lead contents were 34.98 per cent., all, or nearly all, in the form of carbonate of lead. The relative amount of silver is not at all constant, the best silver ore often being poorest in lead. The predominant gangue was silica, several determinations of which have been made on representative samples, yielding in three such samples 26, 38, and 58 per cent. silica, the latter test being ore containing but little lead. The average contents in silica are about 35 per cent., with 6 to 7 per cent. sesquioxide of iron, and small quantities of alumina and lime. Mechanically, the ore was very fine, and so thoroughly disintegrated that it presented few distin¬guishing characteristics, rendering sorting or separating of ore from waste difficult, and often impracticable. Experiments on a small scale have been tried, with a view to separate the silica by washing; but these were unsuccessful, as the finest slime, requiring a long time to settle in still water, contained a large amount of silver; and on a careful sizing and washing of the sands and coarser parts, the silver contents were found to be less dependent upon specific gravity

Jan 1, 1874

By C. Norman Bowers, Blaine B. Wescott

MARKED improvement in the serviceability of sucker rods has been effected in the last two years, partly because of the insistent necessity for greater economy in the operating costs of crude oil production growing out of the general industrial depression and partly because many of the recently developed fields have imposed more severe operating conditions upon both surface and underground equipment. The latter is particularly true of Kansas, where practically all of the oil produced. is associated with damaging amounts of hydrogen sulfide brine and where the method of establishing potential production demands equipment capable of being operated at maximum capacity without interruptions. The decline of flush production in the Oklahoma City field created new problems in deep-well pumping on a scale heretofore unequaled and the increased proportion of water it has been necessary to produce in the fields of the Greater Seminole area presented conditions that were acutely in need of betterment. The problem in the latter fields was complicated by the shift towards sulfide characteristics, which accompanied water encroachment, and it is probably true that nowhere, at the present time, are pump¬ing conditions generally as severe as in this territory. The Mid-Continent district, therefore, has become the proving ground for the numerous materials that have been proposed for sucker-rod fabrication. The information that ultimately will be obtained from an unprecedented amount of field experimentation will pay ample dividends when the decline of East Texas increases the demand for the vast reserves of sour crude in West Texas. It is a rare occurrence in industry that the use of such a simple piece of equipment as a sucker rod presents so complicated a problem for solution. As proof of this, it is only necessary to consider the numerous types of sucker rods on .the market at the present time and contrast this condition with that of less than four years ago, when it was the common aim of manufacturers to develop a single sucker rod for all conditions of

Jan 1, 1935

By Lyon F. Terry

INCREASING domestic demand for products, a sharp reduction in exports to Europe, and a rise in imports from South America were the chief features of the economic side of the industry in 1940. As the war progressed it became evident that exports to former European customers were being cut off or drastically reduced, leaving heavy inventories of products in the hands of many American refiners who had anticipated larger demands from the belligerents. Stocks of motor fuel reached burden-some proportions early in the year for the added reason that refining operations were stimulated by heavy demand for heating oils. Excessive tanker rates for Gulf to Eastern Seaboard movements during the first part of 1940 contributed to the accumulation of products on the Gulf Coast, where refinery gasoline prices were forced to extremely low levels by midyear. Tanker rates receded to normal during the summer but have since risen again to the approximate equivalent of pipe-line tariffs from the Mid-Continent.

Jan 1, 1941

By L. C. Snider

During the past few years a number of large and highly productive oil fields have been discovered in the United States. The immediate oversupply which has resulted, together with the circumstances under which the new fields have been operated, has created exaggerated impressions of the importance and magnitude of these fields. Statements as to the many years during which individual fields could supply the entire demand of certain areas, as to the overwhelming effect of these fields on the industry, and as to their greater size compared with any of the older fields have become so common as to attract little attention. For example, East Texas is commonly considered as the "greatest oil field" and a review of the development of the field for 1931 is so headed in one of the leading trade journals.' East Texas is unquestionably a very great oil field. However, some students of the field have estimated its ultimate recovery at about one billion barrels, and the Bradford field discovered in 1875 is also estimated, by competent engineers, to have about a billion barrels still recoverable by water drive, in addition to more than 300,000,-000 bbl. it has already produced. If East Texas should produce the two or three billion barrels assigned to it by more optimistic estimators, it will, though considerably greater than Bradford, still fall far short of it in importance to the industry. A reasonable doubt also exists as to whether East Texas will exceed the Midway-Sunset field which has produced about 720,000,000 bbl. and still has important reserves. Again, in importance to the industry, Midway-Sunset has been greater than East Texas can ever be. Relative Importance of Oil Fields The principal purpose of this study is to compare, on the basis of their importance to the industry, a considerable number of the major fields which have been developed in the United States. Some remarks are also made as to the estimates of reserves in certain fields now in course of development, since the writer believes that the conditions under which these fields are operated lead to estimates of recoverable reserves which

Jan 1, 1933

By Richard T. Newcomb

This paper considers the many problems involved in estimating rates of technical change via productivity indexes. In mining, declining ore grades complicate the measurement of progress considerably. The estimates discussed in this article were made for the United States iron mining industry by means of two techniques: a simple model of production with two inputs, and multiple regression. The results can be used to explain the relation existing on U.S. iron ranges between rates of exhaustion, technical change, output per man and the increase in capital proportions observed since World War I. Similar ob-servations can be made on the mining sector trends in the United States, Canada, and Japan. Formidable problems confront the economist attempting to estimate the influence of technological changes on the progress of mineral industries. Peculiar to these industries is the problem of how to adjust any measure of technological progress for the offsetting influence of exhaustion. Exhaustion has long been recognized in the mining industry as a critical dimension. Empirically, it is usually treated as a problem of declining grades of ore either in production or in reserves. There are studies of the trends in mining industries attempting to relate changes in input requirements to changes in grade and technology over time. Most frequently, the measure used to indicate technological progress is average labor productivity, e.g., output per man-hour. However, although such an approach has the merit of being simple and direct, it ignores the influence of other important factors of production such as capital. Without defining both the nature of technological change and of production, it can be very misleading to identify increases in labor productivity with tech-

Jan 1, 1969