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By Norman J. Gibbs, John Sroka

INTRODUCTION At the point a company decides to begin mine development and wishes to convince lending institutions that the proposed operation will return their borrowed funds, plus interest, over the terms of the loan, communications between lender and borrower are crucial. The importance of the mine feasibility presentation should not be underplayed, especially as new projects continue to increase in size, complexity, and cost. While the content and emphasis of a report to the lender will vary according to the particular project and type of debt financing sought, there is a general base of information upon which all such studies are built. THE PROJECT'S TECHNICAL ASPECTS Here, the object is to satisfy the lender that he will not be unduly exposed to technical risks as a result of the physical scope of the project. Reserves The feasibility report submitted to financial institutions should include an adequate description of the geologic setting, mineralogy, ore types, and reserves broken down into such recognized categories as proven/probable/possible or measured/indicated/inferred. Rather than a bald statement of reserves, lenders prefer to have detailed information on: History of exploration Drilling, both percussion and core, with core recovery, drill hole spacing, analyses, and continuity of mineralization Bulk sampling, with core assay comparisons Overburden, with stripping ratios Specific methodology of reserve calculation, and Geologic reserves vs. mineable reserves. As a rule of thumb, a lender would prefer to see that reserves in the proven class alone are sufficient to support operations at the design rates until the borrowed funds are repaid. (See also Schreiber above in this Chapter.) Mining The rationale for adoption of a particular mining technique should be presented as well as descriptions and justifications for: Preproduction development Preliminary mine plan, with forecasts of grades and material movements Geotechnical test work which influenced decisions Mining recoveries and efficiencies Major equipment, with type, model, rating life, spares, replacement schedules, utilization, and productivity Manpower requirements and work schedules Design assumptions Ore stockpiling and blending Environmental requirements, and Waste disposal Processing If a new ore body is to be developed or a new process used, it is important to provide details of test work, scale up, and extrapolation factors. A basic process description with a summary of the studies which justify the intended processing route should be included with the following data:

Jan 1, 1985

Perhaps, after years of concerted effort at a mineral prospect, your company has reached the stage of feasibility study. Detailed target investigations, drilling, bulk sampling, land acquisition, and engineering analyses are complete, and the deposit still remains an attractive investment possibility. Your company, after long study, decides to begin mine development-now, how do you convince lending institutions that your proposed operation will return their borrowed funds, plus interest, over the term of the loan?

Jan 12, 1978

By Ralph H. Kress

Haulage trucks designed expressly for mine service were introduced about 35 years ago. The first models to arrive on the scene hauled about 15 tons and easily outperformed the modified highway trucks that had been used for mine haulage up to that time. The specialized trucks obviously had a greater potential for mining operations, and once this fact was recognized, competitive pressures in both the mining and truck-manufacturing industries drove the new vehicles toward ever more efficient performance. Many changes in truck design resulted, but not all were accepted for a variety of reasons. Often poor design was the reason, but in many cases progressive and promising designs were abandoned only because the truck manufacturer lacked the courage, tenacity, or vision to capitalize on them. There were also many cases where a promising new design was abandoned because the prototypes were initiated in a mine where personnel lacked the patience to prove them. Truck Startup Takes A Team Ally new truck that is to succeed and contribute to lower mine haulage costs must be well conceived and launched with good teamwork on the part of all concerned. Naturally, it is essential to have a good overall truck design at the outset to make this teamwork worthwhile. The design must include the selection of the right components manufactured by suppliers that can each do justice to their particular part of the new truck. Last, but by no means least, the mine operator where the truck is to be launched must be enthusiastic in his efforts to see the new vehicle through to successful operation.

Jan 1, 1971

By M. D. Hassialis

THE object of a technical paper is to communicate new technical knowledge, the paper being the vehicle of communication and the existence of new knowledge its reason for being. It follows that the development of information worthy of communication, the criterion being novelty, is prerequisite to exercising the privilege of communication. The act of communication is achieved when the reader perceives the nature of the new knowledge, i.e., when he understands it. A paper achieving this objective is an acceptable technical paper. Development of new knowledge has as one of its purposes the increase of the existing state of knowledge and the enjoyment of the benefits derived therefrom. Technical knowledge is a collection of facts so ordered as to make apparent, relations existing between the facts. When the interrelations have been exposed the facts have been interpreted or explained Three broad, overlapping categories of technical papers may be recognized: papers consisting of (a) a report of facts, (b) an explanation of facts, or (c) a combination of a report and an interpretation. Ideally a technical paper should belong to one of the last two categories but current practice is to accept papers belonging to any of the three categories. Based on a small sample drawn from the scientific and engineering literature, the relative frequency of the three types is a: b: c:: 20:1:14. If the sample be limited to engineering literature, the ratios become a:c::2:1; type (b) being nonexistent. This large departure from the ideal is a consequent of the

Jan 1, 1948

By Macelwane

WHAT characterizes a geophysical engineer and sets him apart from all other engineers? This is a question that is important not only for accrediting purposes but is assuming increasing importance in the licensing of professional geophysical engineers by state boards. What is the basis of distinction of one type of professional engineer from another type is answered in part by the need which brought each type into being precisely because that need could not be satisfied by pre-existing types and which nevertheless demanded the special outlook, training, and abilities of an engineer. The need which called for the civil engineer was the adaptation to the tasks of civilian life of the capabilities developed by the military engineer for the design and construction of roads, bridges, dams, earthworks, military buildings, and other structures and of mechanisms required by military operations.

Jan 4, 1954

By John K. Hammes

INTRODUCTION This introductory paper presents a description and definition of what the finance function is and what it specifically means for the mining industry. In its simplest terms, finance is, "management of money matters". As an area within the discipline of business administration it draws heavily on the related fields of economics and accounting, and to a lesser extent on marketing and production. MINING FINANCE DEFINED In preparing to write about what finance means to the mining industry, I asked a number of mining people the question, "What does mining finance mean to you?" Most responded that mining finance was "How a company borrowed money for mine development", and perhaps half those questioned included "raising equity" in the definition. It is not surprising that the mining industry concept of finance is the providing of funds needed for the objectives of the business, for that was once a view shared by authorities in the field of business administration. Further, it is certainly the area where much of the emphasis has been placed in the past ten to fifteen years as the industry struggled with the development of more remote and more refractory or lower-grade orebodies while profitability and internal cash flow were below expectations. No wonder project finance became such a popular topic. Twenty years ago it is probable that the emphasis would have been on mine valuation, for that subject was the area of finance then most often examined in industry publications. Papers concerning the pros and cons of payback, internal rate of return, and discounted cash flow appeared regularly. Let's examine the following situations, each the result of a financial decision: - Funding the exploration program in a developing country was accomplished by buying the next six-months budget needs in local currency. One week later the currency devalued 30 percent. If the purchase had been delayed or the local currency borrowed short term, a substantial saving would have been made in funding the program. - A major mining company borrows heavily to finance both expansion of its primary mining business and its entry into several new industry segments. When markets for all of the commodities it produces turn down for a prolonged period, there is concern over the adequacy of cashflow to cover debt service in addition to other company needs. The company's financial officers, however, had arranged very large committed credit facilities from numerous financial institutions which assured the availability of funds for several years. This enabled the company to implement a strategy to conserve cash, sell assets and survive until conditions improved. Further, short term suppliers of credit also were comfortable with the assurance that longer term credit was there to support them. -A medium size mining company financed several mines independently with limited obligations on the part of the parent company. The company decided to refinance the operations under one agreement. More flexible terms, lower interest cost and a longer tenor financing were achieved in return for assuming the risk as a direct obligor. - The exploration and development group of a large mining company proposes to develop a new mine in a country in which the company does not presently operate. When the investment is rejected they are advised that one reason was that the reinvestment assumption inherent in the discounted

Jan 1, 1985

By STEPHEN L. GOODALE

THE question indicated in this title was put by letter to a number of my friends working in various industries, who have charge of young metallurgical graduates. The replies were almost unanimous in stating that the college training should cover in the most .thorough manner possible those sciences which are the fundamentals - of engineering. Mathematics, physics, mechanics, electricity, chemistry, physical chemistry, and their applications to actual problems of life were mentioned in most of the letters I received. Some writers added also business law, economics,. and finance. One reply expressed it: "These subjects, well founded, mixed with good judgment, well applied, should enable the .young man to carry on the art of life successfully." One answer stated frankly what is really wanted: "As much as possible.' ' This writer mentioned .the sciences as being very important, but he wishes men ' to be trained in metallurgy also, and he concedes the omission of some advanced chemistry and physic's to secure the metallurgy. He emphasized particularly. the a we. desirability of work in college to development' He concludes his letter with a repetition of his slogan that what is wanted is as much as is possible.

Jan 1, 1930

By Robert Bosworth

THE liability for damages to the surface caused by subsidence is an ever present threat in all underground mining. In ordinary lode mining, this threat rarely materializes into an action, due to the method of mining metalliferous ores, the dip of the veins, and the nature of the ground itself. In the mining of coal, however, this threat is very real. The coal frequently lies close to the surface, in beds underlying large areas of land of which the surface is suitable for agricultural or urban development. Furthermore, the coal is generally mined by the "room and pillar " method and when the pillars of coal are removed, the subjacent support is destroyed. This question of the duty of surface support has now become a very live one in Colorado. What was waste prairie land a few years ago has become valuable agricultural land dotted here and there with growing towns. Frequent references will be made here to Colorado conditions and adjudicated cases, but those conditions and cases and the conclusions to be drawn therefrom are applicable to all coal-mining states. Briefly stated, the question is "Does the owner of the substrata or underlying mineral owe any duty of surface support to the owner of the superjacent strata or surface?" There is no absolute duty of support owed by the mineral owner and this assertion is made with full knowledge of numerous expressions to the contrary by courts of Pennsylvania, Illinois, Colorado and other coal-mining states. Whether or not any duty exists depends upon the circumstances surrounding each case, and since in the nature of things those circumstances are rarely identical, there can be no absolute rule.

Jan 1, 1928

By Robert Bosworth

THE liability for damages to the surface caused by subsidence is an ever present threat in all underground mining. In ordinary lode mining, this threat rarely materializes into an action, due to the method of mining metalliferous ores, the dip of the veins, and the nature of the ground itself. In the mining of coal, however, this threat is very real. The coal frequently lies close to the surface, in beds underlying large areas of land of which the surface is suitable for agricultural or urban development. Furthermore, the coal is generally mined by the "room and pillar" method and when the pillars of coal are removed, the subjacent support is destroyed. This question of the duty of surface support has now become a very live one in Colorado. What was waste prairie land a few years ago has become valuable agricultural land dotted here and there with growing towns. Frequent references will be made here to Colorado conditions and adjudicated cases, but those conditions and cases and the conclusions to be drawn therefrom are applicable to all coal-mining states. Briefly stated, the question is "Does the owner of the substrata or underlying mineral owe any duty of surface support to the owner of the superjacent strata or surface?" There is -no absolute duty of support owed by the mineral owner and this assertion is made with full knowledge of numerous expressions to the contrary by courts of Pennsylvania, Illinois, Colorado and other coal-mining states. Whether or not any duty exists depends upon the circumstances surrounding each case, and since in the nature of things those circumstances are rarely identical, there can be no absolute rule.

Jan 1, 1928

By Robert Bosworth

THE liability for damages to the surface caused by subsidence is an ever present threat in all underground mining. In ordinary lode mining, this threat rarely materializes into an action, due to the method of mining metalliferous ores, the dip of the veins, and the nature of the ground itself. In the mining of coal, however, this threat is very real. The coal frequently lies close to the surface, in beds underlying large areas of land of which the surface is suitable for: agricultural or urban development. Furthermore, the coal is generally mined by the "room and pillar" method and when the pillars of coal are removed, the subjacent support is destroyed. This question of the duty of surface support has now become a very live one in Colorado. What was waste prairie land a few years ago has become valuable agricultural land dotted here and there with growing towns. Frequent references will' be made here to Colorado conditions and adjudicated cases, but those conditions and cases and the conclusions to be drawn therefrom are applicable to all coal-mining states. Briefly stated, the question is "Does the owner of the substrata or underlying mineral owe any duty of surface support to the owner of the superjacent strata or surface?" There is no absolute duty of support owed by the mineral owner and this assertion is made with full knowledge of numerous expressions to the contrary by courts of Pennsylvania, Illinois, Colorado and other coal-mining states. Whether or not any duty exists depends upon the circumstances surrounding each case, and since in the nature of things those circumstances are rarely identical, there can be no absolute rule.

Jan 1, 1928

By Robert Bosworth

THE liability for damages to the surface caused by subsidence is an ever present threat in all underground mining. In ordinary lode mining, this threat rarely materializes into an action, due to the method of mining metaliferous ores, the dip of the veins, and the nature of the ground itself. In the mining of coal, however, this threat is very real. The coal frequently lies close to the surface, in beds underlying large areas of land the surface of which is suitable for agricultural or urban development. Furthermore, the coal is generally mined by the "room and pillar " method and when the pillars of coal are removed, the subjacent support is destroyed. This question of the duty of surface support has now become a very live one in Colorado. What was waste prairie land a few years .ago, has become valuable agricultural land dotted here and there with growing towns. Frequent references will be made here to Colorado conditions and adjudicated cases, but those conditions and cases and the conclusions to be drawn therefrom are equally applicable to all coal-mining states. Briefly stated, the question is "Does the owner of the substrata or underlying mineral, owe any duty of surface support to the owner of the superjacent strata or surface?" There is no absolute duty of support owed by the mineral owner and this assertion is made with full knowledge of numerous expressions to the contrary by courts of Pennsylvania, Illinois, Colorado and other coal-mining states. Whether or not any duty exists depends upon the circumstances surrounding each case, and since in the nature of things those circumstances are rarely identical, there can be no absolute rule.

Jan 1, 1927

By Robert Bosworth

THE liability for damages to the surface caused by subsidence is an ever present threat in all underground mining. In ordinary lode mining, this threat rarely materializes into an action, due to the method of mining metaliferous ores, the dip of the veins, and the nature of the ground itself. In the mining of coal, however, this threat is very real. The coal frequently lies close to the surface, in beds underlying large areas of land the surface of which is suitable for agricultural or urban development. Furthermore, the coal is generally mined by the "room and pillar" method and when the pillars of coal are removed, the subjacent support is destroyed. This question of the duty of surface support has now become a very live one in Colorado. What was waste prairie land a few years ago, has become valuable agricultural land dotted here and there with growing towns. Frequent references. will be made here to Colorado conditions and adjudicated cases, but those conditions and cases and the conclusions to be drawn therefrom are equally applicable to all coal-mining states. Briefly stated, the question: is "Does the owner of the substrata or underlying mineral owe any duty of surface support to the owner of the superjacent strata or surface?" There is no absolute duty of support owed by the mineral owner and this assertion is made with full knowledge of numerous expressions to the contrary by courts of Pennsylvania, Illinois, Colorado and other coal-mining states. Whether or not any duty exists depends upon the circumstances surrounding each case, and since in the nature of things those circumstances are rarely identical, there can be no absolute rule.

Jan 1, 1927

By Emery R. Hayhurst

SILICOSIS has been described in a report of the American Public Health Association as a disease due to breathing air containing silica, characterized anatomically by generalized fibrotic changes and the development of miliary nodulations in both lungs, and clinically by shortness of breath, decreased chest expansion, lessened capacity for work, absence of fever, increased susceptibility to tuberculosis (some or all of which symptoms may be present), and by characteristic X-ray findings. ... The disease is divided arbitrarily into first, second, and third stages for convenience of description and possible compensation purposes. At least two distinct types of silicosis are recognized, acute and chronic. The acute form was reported as early as 1713, when a British patent for grinding flint by wet methods was granted because the dry powdered material "proved very destructive to mankind, so much that any person, ever so healthful, working in that business cannot possibly survive over two years."

Jan 1, 1936

By W. R. Ingalls

IF, in this study of the outlook for the copper industry of the United states, I find myself assuming to be prophetic in some respects I shall express myself with hesitation and with the foresight that after the end of the war with Germany the war with Japan may continue; anyway there is sure to be an uneasy period before copper and the other metals begin to flow smoothly through the natural channels of consumption. It is mainly my purpose to survey conditions and suggest some probabilities, or possibilities, rather than to prophesy. In interpreting them it will be necessary to make certain aasurnptions, among which will be (1) expectation of a rise in the general price level,, which so far has been one-sided; (2) continuance of the k. tariff on copper imports; and (3) lock-up of government-owned copper as a military re- serve. Of these assumptions the first is indicated by the lessons from economic history, and by current symptoms. The second and third depend upon political action by Congress.

Jan 1, 1944

By Eugene Guccione

FOREWORD-Back in October of last year, I approached three of the largest commercial banks in the country to solicit an article about the role of commercial banks in mine financing. "We'll be delighted to cooperate with you in any way we can," was the stock response. As the September 1975 deadline approached, however, every bank officer I had contacted almost a year earlier informed me that he couldn't write such an article be- cause of "prior commitments," "an excessive workload," or "vacation schedule," etc. This was not a total surprise. Any commercial banker will be truly delighted in talking with you, if you have a good mining prospect, a good reputation, a good batting average in your business-and if he has the capital you want to borrow. But what happens when banks themselves are illiquid? Much as they would like to help you, they simply can't. And most of them clam up.

Jan 9, 1975

By William N. Poundstone

What attracts young engineering graduates into the coal industry? What do these young men expect of a career in coal mining? These questions are often asked and debated by mining men throughout the country. In order to present a comprehensive answer to them, an opinion survey was conducted at West Virginia University's School of Mines among the junior and senior classes and part of the sophomore class. The tabulation of the answers showed that the present-day mining engineering student is an older, more mature individual as compared with former years and as compared with other present-day college students. The average age of the country's record-breaking 150,000 college graduates is 24 years. Among this year's mining graduates at West Virginia University, 78% are of this age or older. Over half (54%) of those polled in the survey are married. This is com- pared to 30% as a national figure. Of those married, 38% have one child and over 6% have two children. The entire senior group covered by this survey has averaged almost three years in the armed forces. An article entitled "The Class of '49" in the June issue of Fortune magazine states that this year's class is the oldest, most mature class in history. Our survey indicates that the mining engineering students at West Virginia University are well above the average in this respect.

Jan 1, 1949

By Don Simon

In the late 1960s the mining industry was in an apparent slump due to a combination of factors. Enrollment dropped significantly at schools offering mining engineering degrees, resulting in a shortage today of experienced mining graduates to staff middle management positions. How has this limited supply affected salaries? Does the shortage impair the mining industry's ability to respond to national energy needs?

Jan 12, 1979

By W. A. Eardley

FIFTEEN years ago the world's deepest oil well penetrated the earth about 7300 ft. That depth has now been more than doubled. Why has such deep drilling become necessary and how has it become possible? Three factors have had an important bearing: (1) Depletion of shallow zones, making it necessary to search for deeper producing measures. (2) The perfection of prospecting methods, which have been success- fully used to locate favorable buried structures, many at great depth. (3) Improvement in the quality of steels used for drilling.

Jan 1, 1940

By John J. Schanz

THE highly publicized shortage of students enrolled in engineering curricula has brought about a rapid increase in the enrollment in engineering schools in many parts of the country. Though most of the various curricula in the mineral industries field have participated in this increase, the experience at Pennsylvania State University has been that the nonmineral types of engineering have been increasing at a much more rapid rate than those in the College of Mineral Industries. [ ] It has been a matter of some concern to the staff of the College of Mineral Industries that enrollment in the curricula of the school has not been increasing at a rate commensurate with that experienced in the College of Engineering. If the lack of trained young graduates for our vital mineral industries is to be overcome, this situation must be remedied.

Jan 8, 1954

By Francis Cameron

Mining is both exciting and rewarding-although at times somewhat frustrating-and we all can have real pride in our industry, in its people, and in its accomplishments. It is, however, with concern that I have noted a deterioration in this Country in what might be called mining's stature and in the growth of a belief in many quarters that our mineral reserves are rapidly approaching exhaustion. In other words, there is a popular image that we are fast becoming a "have not" nation in many respects and that the domestic mining industry can no longer be considered, in the vernacular of Wall Street, to offer much in the way of "growth potential." I do not subscribe to this hypothesis, nor do I believe that the record of the mining industry bears this out. However, let me add that we can, in time, talk ourselves into this frame of mind and we can hasten the day when this very well might come about by unnecessary and unwise legislation or regulation. My remarks today are basically designed to give my reasons for refuting this negative philosophy and to review our record. With your help, I know we can improve our image, and the public's recognition of our industry's peculiar problems.

Jan 4, 1968