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By C. Richard Tinsley

INTRODUCTION Documentary complications arise from the risk apportionment in project financing which generally means that once the project is up and running and has satisfied the lender's completion test, the loan agreement specifically limits the lender's recourse to the project and its assets. It is the purpose of this paper to describe the special considerations which apply to industrial minerals projects and explore the reasons why so few project financings are negotiated in this industry. SIZE Small projects do not warrant the relatively high costs of negotiating and documenting project financing. The extent of the documentation is directly proportionate to either (a) the degree of risk apportionment, or (b) the amount of control given to lawyers to negotiate the documents. Although one would like to believe that project-finance documentation could be off-the-shelf, it is almost always necessary to tailor the documents to the mine development itself and the individual desires of the borrower. Accordingly, the documentation costs and initial expenses are seldom less than $40,000, and for complex projects can reach $400,000. In addition, banks often charge an up-front fee to partly compensate them for their staff time and partly to increase their yield on what is deemed to be a "riskier" loan asset. Another factor is the generally lower debt:equity ratio when bankers are uncertain of the accuracy of the cash flow projections. The ratio of the amount of cash flow left over after debt service to debt service itself is a key tool for project finance (debt service coverage). Bankers will require a higher coverage ratio for industrial minerals projects because of the relatively higher uncertainties in the following categories: Prices Markets Geology/Quality Transportation Environmental This, in turn, means that lower debt:equity ratios are the norm for new industrial minerals projects. INDUSTRY STRUCTURE It is hardly worthwhile to generalise about a field as diverse as industrial minerals, but there are four other structural reasons why project financing has not been widely applied. 1. The most obvious example is the predominance of small-sized operations, largely a function of transportation economics. Geological conditions also contribute to their dispersion. 2. Often, the product is only a small part of a company's business in contrast to many petroleum, metals, or coal companies whose sole business is the production of the raw material. The construction industry is a good example here for cement, gypsum, crushed stone, sand and gravel, and the drilling-mud services business for barite and bentonite. A company is unlikely to jeopardise its main business through the failure of a project financing on one of its key inputs. The corrollary is that the mined input is often regarded as a cost centre and not run on the sort of economic basis suitable for project financing. 3. There may be a reluctance to reveal key aspects of an industrial minerals venture to an outsider for purely competitive reasons. Unlike the other minerals industries which readily share technical information at plant visits and

Jan 1, 1985

IT does not seem practicable to review all the other specialized curricula that have developed in the mineral industries field in so much detail as has been given for petroleum. Nor is it easy to draw a definite line between true curricula, leading to a designated degree in the special subject, and options, which may range from the mere substitution of one or two courses for others in the final years to differences so extensive as almost to amount to separate curricula. Even to attempt to catalogue all the options that have been offered at one time or another would require too much space. The remainder of this discussion, therefore, will be confined to three topics which seem to be of major importance. Mining and metallurgical curricula will be covered in a later chapter. GEOLOGY The first, from the historical view, is geology in its relation to the mineral industries. Previous chapters have made clear that in the early years of mineral industry instruction in the United States economic geology and mining engineering so overlapped one another that men who were by, training and experience economic geologists were appointed professors of mining, while men who had graduated as mining engineers sometimes developed into professors of geology. Even today men whose basic training was in geology as a pure science, and who perhaps took a doctor's degree in that subject, have attained such distinction in the mineral industries as to be universally accepted as "mining men," and their right to be regarded as mining engineers would- not be questioned, even though they did not take a degree in engineering. Nevertheless the distinction does exist, and has been made a concrete reality in recent years by the enactment of

Jan 1, 1941

By Thomas T., Read

IT does not seem practicable to review all the other specialized curricula that have developed in the mineral industries field in so much detail as has been given for petroleum. Nor is it easy to draw a definite line between true curricula, leading to a designated degree in the special subject, and options, which may range from the mere substitution of one or two courses for others ' in the final years to differences so extensive as almost to amount to separate curricula. Even to attempt to catalogue all the options that have been offered at one time or another would , require too much space. The remainder of this discussion, there- fore, will be confined to three topics which seem to be of major importance. Mining and metallurgical curricula will be covered in a later chapter. Geology The first, from the historical view, is geology in its relation to the mineral industries. Previous, chapters have made clear that in the early years of mineral industry instruction in the United States economic geology and mining engineering, so overlapped one another that men who were by training and experience economic geologists were appointed professors of mining, while men who had graduated as mining engineers sometimes developed into professors of geology. Even today men whose basic training was in- geology as a pure science, and who perhaps took a doctor's .degree in that subject, have attained such distinction in the mineral industries as to be universally accepted as "mining men," and their right to be regarded as mining engineers would not be questioned, even though 'they did not .take a degree in engineering. Nevertheless the distinction does exist, and has been made a concrete reality in recent years by the enactment of

Jan 1, 1941

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

"If you can hold a board of cross directors In happiness against their gauzy schemes; If you can dodge the wrath of the electors Till dividends will flow as in their dreams; If you can make a mine pay from the grass roots No matter what the time or place or year; Then on my soul until the final blast shoots We'll add the title "MINING" when we call you "ENGINEER. " -From Wayne Darlington, "The Mining Engineer, " The Engineering and Mining Journal, Vol. 98, Sept. 26, 1914, p. 587. REASONS FOR THIS CHAPTER Up to this point in the book the material presented has addressed the fundamental parameters associated with the evaluation of mining ventures and other investment alternatives. The procedures and techniques illustrated represent the basic approach to project evaluation, particularly when considering the normal engineering economic analysis of investment proposals. The evaluation procedure is complicated, however, when dealing specifically with mining-related investment proposals. These complicating factors are invariably directly related to the many special characteristics of the mining industry. Many of these special features such as tax policies, revenue and cost estimation, and ore reserves have been addressed in previous chapters. In addition to the many special features of mining which directly impact, in a quantitative manner, the various line items in the pro forma income statements of a cash flow analysis, other features of mining affect evaluation procedures in a more general manner. The main purpose of this chapter, then, is to provide an exposition of some of these more qualitative factors. We hope this will enable the reader to recognize these factors in mine evaluation practice and to make suitable adjustments in his or her analysis.

Jan 1, 1984

Jan 1, 1913

5. The medal committee may invite nominations from the membership of the Institute, such nominations to be accompanied by an argument in favor of the award and details sufficient for a proper citation to be drawn. This medal has been awarded as follows: 1927—David William Brunton. 1929—John Hays Hammond. 1928—Herbert Hoover. 1930-Daniel C. Jackling. Miscellaneous Prizes Many of the Local Sections have established or administer prizes for the best paper presented within the year by any junior member. Annual Lectures Howe Memorial Lecture The Howe Memorial Lecture, in memory of Henry Marion Howe, Past President of the Institute, was authorized in April, 1923, as an annual address to be delivered by invitation under the auspices of the Institute by an individual of recognized and outstanding attainment in the science and practice of iron and steel metallurgy or metallography, chosen by the Board of Directors upon recommendation of the Iron and Steel Division. The following were the Howe lectures and lecturers for the years indicated: 1924 What is Steel? By Albert Sauveur. 1925 Austenite and Austenitic Steels. By John A. Mathews. 1926 Twenty-Eve Years of Metallography. By William Campbell. 1927 Alloy Steels. By Bradley Stoughton. 1928 Significance of the Simple Steel Analysis. By Harry D. Hibbard. 1929 Studies of Hadfield's Manganese Steel with the High-power Microscope. By John Howe Hall. 1930 The Future of the American Iron and Steel Industry. By Zay Jeffries. Institute of Metals Lecture An annual lectureship was established in 1921 by the Institute of Metals and it has come to be one of the important functions of the Annual Meeting. A number of distinguished men from this country and abroad have served in this lectureship. The roll is quoted below: 1922 Colloid Chemistry and Metallurgy. By Wider D. Bancroft. 1923 Solid Solution. By Walter Rosenhain. 1924 The Trend in the Science of Metals. By Zay Jeffries. 1925 Action of Hot Wall: a Factor of Fundamental Influence on the Rapid Corrosion of Water Tubes and Related to the Segregation in Hot Metals. By Carl Benedicks. 1926 The Relation between Metallurgy and Atomic Structure. By Paul D. Foote. 1927 Growth of Metallic Crystals. By Cecil H. Desch. 1928 Twining in Metals. By C. H. Mathewson. 1929 The Passivity of Metals, and Its Relation to Problems of Corrosion. By Ulick R. Evans. 1930 Hard Metal Carbides and Cemented Tungsten Carbide. By 8. L. Hopt.

Jan 1, 1930

The Institute conducts jointly with the American Society of Civil Engineers, 'American Society of Mechanical Engineers and American Institute of Electrical Engineers, certain activities as listed below, and is joint owner with them if certain properties. United Engineering. Trustees, Inc. When Mr. Carnegie made his gift which made possible a home for the engineering societies, a separate corporation was organized to act as a holding company and to manage the common property. This was long known as the United Engineering Society but the name has now been changed to one which more nearly reflects the real function of the corporation. It holds title to the Engineering societies Building and to various funds placed in its charge and is managed by a Board of Trustees of which three are chosen by each of the four societies, American Institute of Mining and Metallurgical Engineers, American Society of Mechanical Engineers, American Institute of Electrical Engineers and American Society of Civil Engineers, which own equal and undivided interests in the property. The land and building cost two million dollars. The interest of each of the Founders societies, aside from especial trust funds, is now valued at $493,352. The A. I. M. E. trustees are Arthur S. Dwight, J. V. N. Don and George D. Barron. The President of the Board is Francis Lee Stuart and the Secretary, Alfred D. Flinn.

Jan 1, 1929

The Institute conducts jointly with the American Society of Civil Engineers, American Society of Mechanical Engineers and American Institute of Electrical Engineers, certain activities as listed below, and is joint owner with them of certain properties. United Engineering Trustees, Inc. When Mr. Carnegie made his gift which made possible a home for the engineering societies, a separate corporation was organized to act as a holding company and to manage the common property. This was long known as the United Engineering Society but the name has now been changed to one which more nearly reflects the real function of the corporation. It holds title to the Engineering Societies Building and to various funds placed in its charge and is managed by a Board of Trustees of which three are chosen by each of the four societies, American Institute of Mining and Metallurgical Engineers, American Society of Mechanical Engineers, American Institute of Electrical Engineers and American Society of Civil Engineers, which own equal and undivided interests in the property. The land and building cost two million dollars. The interest of each of the Founders societies, aside from especial trust funds, is now valued at $493,352. The A. I. M. E. trustees are Arthur S. Dwight, J. V. N. Derr and George D. Barron. The President of the Board is Francis Lee Stuart and the Secretary, Alfred D. Flinn.

Jan 1, 1923

By AIME AIME

Do you Possess, or Can you Obtain; and Will you Give, or Sell, to the Institute Library Early Volumes of the following Proceedings and Journals? American Chemical Society. American Foundrymen's Association. Australian Mining Standard. Chemical Society of London. Deutsche Chemische Gesellschaft. The Foundry. New Zealand Mines Record. Queensland Government Mining Journal. La Revue Universelle des Mines.

Jan 9, 1907

By Paul Levin

A coal preparation plant built with conventional materials only might be able to do an efficient job of preparing coal, but its maintenance costs would be high and emergency shutdowns frequent. To remedy this situation special materials are being used, either in original plant construction or for replacement of conventional materials. The special materials vary from high-strength and abrasion-resisting steels and stainless steel alloys to ceramics. They include hard surfacing welding rods, rubber refractories and some of the newer plastics, the merits of which are cited by the author. A coal preparation plant, limited strictly to the use of conventional materials-for example, mild steel, cast iron and ordinary rubber-could, no doubt, do an efficient job of preparing coal, but the high cost of maintenance and increasingly frequent emergency outages would soon force the operator to seek relief by introducing special materials such as alloyed steels, oil-resistant rubbers and hard-surfacing welding rods.

Jan 6, 1964

By Paul M. Tyler

HISTORICAL concepts of the economics of the glass-sand industry are changing rapidly. The greatly expanded demand for glass containers combined with higher freight rates on raw materials and manufactured products have induced a migration of glass factories toward densely populated centers and the creation of new standards of place value for sub- standard sand deposits. This migration has been facilitated by the construction of pipelines to bring cheaper natural gas and liquid fuel to large cities and may be further speeded by the adoption of modern mineral dressing methods to permit economical utilization of local raw materials. Our national resources of naturally high-grade 1 silica sand are abundant, but most of the best de- posits are situated so far from large centers of population that it now costs $3.00 to $5.00 a ton to carry the sand from the mine to the optimum site for a 1 factory making beverage bottles, scientific and electrical glassware, and miscellaneous blown and pressed ware for local markets. It follows that on the basis of freight savings alone it may be economical to use material from inferior deposits closer to the factory even though the f.o.b. cost of mining and treatment may be much high

Jan 1, 1950

By G. W. Jr. Jarman

THE purpose of this paper is to present briefly a description of some of the special methods of separation or concentration, either singly or in combination with others, and to give certain operating data and examples. Explanation of the usual methods of large-production mill treatment, such as flotation or wet tabling, or of chemically treating industrial minerals, is not included in the scope of this paper, although one of these methods might be, in certain instances, augmented by one or more of the special methods that will be enumerated herein. Description of these special methods will be centered on magnetic separators, electro-static separators and air flotation or air tables.

Jan 1, 1938

By G. W. Jarman

THE purpose of this paper is to present briefly a description of some of the special methods of separation or concentration, either singly or in combination with others, and to give certain operating data and examples. Explanation of the usual methods of large-production mill treatment, such as flotation or wet tabling, or of chemically treating industrial minerals, is not included in the scope of this paper, although one of these methods might be, in certain instances, augmented by one or more of the special methods that will be enumerated herein. Description of these special methods will be centered on magnetic separators, electro- static separators and air flotation or air tables. MAGNETIC SEPERATORS In general, separating is achieved by exerting upon a particle some kind of force opposed to gravity, either directly or at an angle. For example, in the Wetherill or cross-belt type of magnetic separator some particles are lifted vertically from the others because they have been exposed to a force to which they respond more readily than particles of lesser magnetic susceptibility. Of course, there is a limitation to this vertical rise, for the particle must be of a high enough susceptibility to receive a magnetic force greater than the 980 dynes per gram of gravitational urge. To overcome this limitation, the induction type of magnetic separator was developed, so that it is only necessary to instill, say, 30 to 60 dynes per gram instead of the 980, to cause a deflection away from the vertical in falling, and that deflection can be used advantageously when falling by inserting a dividing knife-edge. The induction magnetic separator (Fig. 1) has become a fairly well known method of concentrating and purifying. For example, abrasive grain was among the materials that did not respond to the previously best known type of magnetic separator, such as the Wetherill type, and the development of the induction magnetic separator in the plant of a

Jan 1, 1938

By D. Beregekoff

In the routine examination of a wide variety of metal specimens it is sometimes necessary to have special methods of polishing in order to retain and reveal certain details in each specimen. Among such special cases is the retention of graphite in malleable and gray cast irons, the preservation of all types of nonmetallic inclusions in both hard and soft steels, obtaining a scratch-free surface with soft metals, and avoiding the usual relief effects with very hard specimens such as tool metals con-taining various carbide and nitride phases. It is the purpose of this paper to give an account of some of these special polishing methods in use at the Union Carbide and Carbon Research Laboratories. The polishing procedures outlined have been found to give uniform results. It is obvious that only general rules and the most important working details can be given here. Following these rules, the polisher can obtain satisfactory results if he possesses the necessary patience and has a sincere desire to give as nearly perfect a finish as possible to his work.

Jan 1, 1939

By D. Bergekoff

IN the routine examination of a wide variety of metal specimens it is sometimes necessary to have special methods of polishing in order to retain and reveal certain details in each specimen. Among such special cases is the retention of graphite in malleable and gray cast irons, the preservation of all types of nonmetallic inclusions in both hard and soft steels, obtaining a scratch-free surface with soft metals, and avoiding the usual relief effects with very hard specimens such as tool metals con-taining various carbide and nitride phases. It is the purpose of this paper to give an account of some of these special polishing methods in use at the Union Carbide and Carbon Research Laboratories. The polishing procedures outlined have been found to give uniform results. It is obvious that only general rules and the most important working details can be given here. Following these rules, the polisher can obtain satisfactory results if he possesses the necessary patience and has a sincere desire to give as nearly perfect a finish as possible to his work.

Jan 1, 1939

By Paul M. Tyler

Higher freight rates and better methods of beneficiation now may make it more economical to open inferior deposits closer to a glass factory than to work higher-grade deposits farther away. Nature of impurities and special treatments as well as common practice of sulphuric acid leaching are described.

Jan 11, 1950

In connection with the recent visit of the Special Mission of British Ministry of Munitions to the United States, the United Engineering Societies gave a dinner to the members of the. Mission on Tuesday evening, Nov. 13. This was the only public function on behalf of the visiting commissioners while they were in New York. During the remainder of their visit they were in daily conference with bankers, merchants' associations, labor federations, and other organizations. The result of these conferences will doubtless have an important influence on the manufacture of war supplies in the United States, since it will enable our business men and manufacturers to avoid a good many of the mistakes that unfortunately occurred in England at the beginning of the war. At present, fully 90 per cent. of the employees of British munition factories are omen, and the problem of employing women in the industries of the United States will doubtless soon be encountered with increasing frequency.

Jan 1, 1918

By Oliver Smalley

EXCEPT for the work of Guillet, who conducted a systematic investigation on the zinc-replacing value of nickel in brass, and extended his investigation with a view to developing commercial high zinc content nickel brasses, the author does not know of any systematic research on the subject. The most promising commercial alloys and their physical properties obtained by Guillet are given below: Maximum Elonga- Reduction Copper Zinc Nickel Stress, tion, of Area, Brinell Tons Per Per Cent. Per Cent. Sq. In. 55.0 41.0 5.0 24.4 46.5 94 Sand cast. 22.6 27.0 90 Chill cast. 56.7 39.74 3.35 30.0 43.0 51.7 97 Casting annealed 2 hr. at 750° C. 33.9 33.0 50.7 144 Cold-drawn bar. 55.15 42.3 2.24 29.8 33.0 116 Casting annealed 2 hr. at 750° C. 32.3 29.0 151 Cold-drawn bar. These test results scarcely justify the use of such quantities of so expensive a metal, and could have been obtained from ordinary commercial brass. For purposes of comparison, the physical properties of ordinary brasses, ranging from 70 per cent. to 50.1 per cent. Cu in both the cast and normalized1 conditions are included in Table 1. These incidentally furnish a useful standard of the properties of castings and of rolled, extruded and forged brass when correctly annealed. A close study of some of the well-known special brasses containing nickel reveals a series of alloys which bewilder by their complexity, and one can only hazard a guess at the function and commercial value of each of the many elements used.

Jan 10, 1925

Butte Meeting. It is expected that the technical program of the Butte meeting will be a sufficient attraction to draw to that point every member who can possibly get away long enough to attend. Attention is particularly called to the papers already sent in by the Committee on Precious and Base Metals, and the papers which they are undertaking to secure for the meeting, as published on pp. ix and x. In addition to these papers, and in addition to those published in this Bulletin, the office of the Institute already has in hand several papers, which will be published at an early date, and presented in abstract and discussed at the meeting. Of the discussion of these papers a special feature is being made. Therefore, let every member come to Butte who can do so. A meeting of the Board of Directors of the Institute will also be held at Butte. In the May Bulletin, we stated for the information of members the railway excursion rates for two suggested tours in connection with the meeting, which included Glacier Park before the meeting and Yellowstone after it. The itineraries there given and rates quoted were planned and offered by the railway agent bureaus in New York. Circulars have been sent to the members of the Institute by A. E. Vaughan & Co., a tourist trip agency of New York City, containing details of tours nearly identical with those outlined in the Bulletin, and quoting rates covering, the expenses of the whole trip. Members can easily compare these rates with the rates offered by the railroads, and published in the last Bulletin. In order that no misapprehension may exist, the statement is here made that the Institute and its officers have no connection whatever with Vaughan & Co.'s proposals and that any such tours will be strictly personal matters between said company and the members of the Institute who take them. Nevertheless, the Board of Directors calls to the attention of members the circumstance that tours such as these will afford an opportunity for members to travel together to the meeting.

Jan 6, 1913

Advantages to Members of Our Advertising Section.-It is our intention to make the advertising section of the Bulletin as comprehensive as possible, so that members can turn to it for complete information as to where to buy the best mining and metallurgical supplies at the lowest prices. No firms or supplies of dubious reputation are advertised in the Bulletin.. If members, in buying any material, will refer to the advertisement of that material in the Bulletin, or if they do not find it advertised in the Bulletin, will, when ordering, ask the manufacturers why the goods were not advertised in the Institute publication, it will be of material benefit to all of us, because the chief reason why advertisers .are unable to trace direct results is because purchasers do not mention the Bulletin when writing. Finally, if members, when in need of anything whatsoever, will write to the Institute headquarters, an effort will be made to send them a complete list of manufacturers able to supply the desired materials of good quality. The furnishing of these lists will be a benefit to our Advertising Department, as well as to the members. We need .scarcely call attention to the advantages obtained by the members from the motley which advertising brings in, because all this money is returned directly to the members in one form or another.

Jan 7, 1913