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By Grover R. Castle

INTRODUCTION Banks are being asked to assume more and more of the project risk in connection with project financings and, as a result, they are seeking to become more sophisticated in the way that they approach these kinds of financings. For example, a large number of banks that are active with the mining companies have established mining groups which typically will include mining engineers, economists, and bankers, in order to specialize their service to the mining industry. These banks have geared up these special service staffs so that they will be better equipped in their lending activities to analyze, measure and evaluate the project risk. The hope is that a team of these specialists will be able to predict the potential success or failure of these new "green fields" mining ventures that the banks are asked to finance. This paper shall focus on this subject and try to determine just how successful these specialists can hope to become as they analyze these various projects that are brought to them for financing. The approach that shall be taken in this paper shall be to examine how successful the mining companies themselves have been in the past with this same problem. These mining companies should be the most sophisticated in their approach to the analysis of the potential for success of a new mine because they have had the most experience in evaluating these projects. After all, who knows more about developing a mine than the companies that have developed similar mines in the past? For the purposes of this paper, the writer has selected a sample of 18 mines that have been developed over the years and measured the actual performance of each of these sample ventures against the original projections. All of these cases have involved the development of large projects where the sponsors or partners in the venture are substantial and sophisticated companies and where the feasibility studies have been prepared by engineering firms that are considered very professional in the industry or alternatively where the feasibility has been done by a comparable in-house staff. The sample cases have been chosen from a period which starts in 1965 and continues through 1981 with the cases distributed over that period as indicated below: [ ] Fourteen of the projects are open pit mines, three are underground mines and one mine starts on the surface and gradually goes underground. Seven of the mines are in the the far east with the remaining three in either South or Central America. The following four specific questions were examined for each project:

Jan 1, 1985

By R. S. Handy

THE properties of the Patiño Mines and Enterprises Consolidated, Inc., a New York corporation, are near Llallagua in the department of Chayanta in the west central part of Bolivia, South America, about 80 miles southeast of Oruro and 250 miles southeast of La Paz, the largest city in Bolivia and its virtual capital. The properties are accessible by railroad from three points on the west coast-from Mollendo, Peru, across Lake Titicaca, from Arica by way of La Paz, and from Antofagasta, Chile. The latter route, although the longest, is recommended by the companies as affording a more gradual introduction to the high altitudes; the mine being 13,000 ft. above sea level. The company operates its own railroad from its properties at Uncia to Machacamarca on the Chile & Bolivia R. R., a distance of 60 miles. This railroad is well equipped and well operated, and its location among the mountains surrounding Uncia represents excellent engineering skill. In fact all of the railroads, although they are of only a meter gage, are remarkable for the excellence of their construction, the arrangement of their dining and sleeping cars and the precision of their operation. There is only one drawback to rail- road and hotel accommodations and that is the absence of heating facilities, which does not seem to affect the natives but keeps a tenderfoot's teeth chattering continually. The company is a consolidation of the Patiño company, owning properties at Uncia, with the Compafiia Estanfera de Llallagua, a' Chilean corporation owning contiguous properties at Llallagua. Before the consolidation these companies were deadly enemies, and there still remain at the surface plant at Uncia the fortifications and underground defences provided during the warfare between the two factions. Also, in the Azul, or "Blue" tunnel at the junction line between the two properties is a strong steel barricade still bearing marks of the bullets fired during the various armed tilts between the workmen of the two companies. The headquarters for the mining operations and the milling plant have been moved since the consolidation from the original location at Uncia to the Llallagua side of the mountain, where the Chilean company's operations were carried on. The historic old town of Uncia, with its massive stone buildings of Spanish design, is a wreck, while the Llallagua side is being rapidly built up with modern structures.

Jan 1, 1929

By Paul G. Hoffman

A survey of the role of the United Nations Special Fund in the field of mining and metallurgy. An aircraft, manned by Canadians and crammed with modern scientific instruments, crisscrosses over the dense rainforests of tropical Surinam at Y4 kilometer intervals, prospecting for valuable mineral deposits. Mill head samples of Burmese lead and zinc ores arrive at a Colorado laboratory for analysis and experimentation to determine the best milling and ore-dressing techniques. At the new Institute for Applied Geology in Manila, Philippine mining engineers receive instructions from a Finnish petrologist. These scenes illuminate only a fraction of the exciting work in the mining and metallurgical fields being carried out by the United Nations Special Fund.

Jan 8, 1963

By Sadtler, C. B.

IT is generally assumed that in most metals and alloys a given tensile stress produces a given deformation irrespective of the length of time during which the stress is applied. This assumption is justified in most of the important engineering applications of metallic materials; however, in the case of some metals and alloys used or tested at temperatures over or slightly under that at which recrystallization can occur the assumption is not warranted.1 This paper deals with the variations of deformation produced by a constant tensile stress acting for varied lengths of time in the special case of thin aluminum alloy sheet of the duralumin type, which had been subjected to different thermal and mechanical treatments. The material investigated was in the form of a sheet approximately 0.002 in. thick, which had been cold-rolled from a thickness of 0.020 in. It has been found that at a sufficiently high constant tension such material deforms continuously with the elapse of time and that the rate at which this deformation occurs is greatly influenced by the previous thermal and mechanical treatments.

Jan 1, 1927

ALEXANDER BRYDEN Alexander Bryden, clean of engineers in the anthracite mining field, and a member of the pioneer Pittston family, was claimed by death Wednesday, September 26, 1917. The announcement was not a surprise, as he had been in a critical condition for several days. Mr. Bryden had been in failing health for a year past, but his indomitable will kept him at his accustomed duties until quite recently. Two weeks before his death he attended the regular weekly meeting of the Board of Directors of the Miners' Savings Bank in Pittston, Pa. At that time he apparently felt that his end was fast approaching, as he bade farewell to his associates on the bank board. Until a few days before the end, he continued to give attention to business matters at his home, in preparation for the end, which he met unflinchingly. In the passing of Mr. Bryden, northeastern Pennsylvania loses one of the best-known mining engineers, and the community, a man who, throughout his long life, was actively interested in its social welfare and business prosperity. He was for many years prominent in the management of the mining operations of the Pennsylvania Coal Co., and at the time of his death held the position of consulting engineer of the Pennsylvania and Hillside Coal. Companies.

Jan 12, 1917

By Mara Kosovac, Sujan K. Kundu

The Iron Ore Co. of Canada (IOC) has developed a computerized plan analysis method for its open-pit iron mining operations which will eliminate much of the tedious manual drafting of pit design plans performed by engineers and geologists at its two major operational areas near Schefferville, Que., and Labrador City, Nfld. The new technique permits analysis of section or bench plans for a specific ore body, based on drillhole information; preparation of a three-dimensional unit profit matrix for pit design purposes, and storage of extensive ore-block information for other applications. Other advantages include enhanced design accuracy through reduction of human errors normally associated with preparation of large data masses, and by elimination of errors inherent in planimeter-prepared ore block diagrams.

Jan 7, 1978

By JOSEPH MACDONALD

STRIPPED of its romantic possibilities, mining is a commercial business, carried on for the profit there is in it, and the business of the manager, in its ultimate analysis, is to make the profit as large as possible. The general manager of a mining company should keep himself personally familiar with all the details of its operations. If be fails to do so, chaos results, labor becomes inefficient, costs go up, and profits go down. Nowhere is this emphasized more than in Mexico. If the mining operations are extensive and complex, involving, besides the work of mining the ore, its transportation and treatment by various milling operations, and the marketing of the products, the business, to be carried on properly, must be divided into a number of main departments, which are subdivided into minor departments. Each main department should be under the immediate charge of a superintendent, or a foreman, and each minor department under a shift-boss. Organized in this way, and with all the principal centers of activity connected by telephone, the manager can keep in touch at all times with the details of every branch of the business, and be in a position to perform effectively the full duty of manager. The ?total cost of mining operations may be broadly divided under the heads of Labor, Supplies, and Marketing. Of these, it will be found, on averaging a number of cases, that the cost of labor will be about two-thirds of the total cost. The importance, therefore, of an efficient labor-department will be apparent. This department must be sub-divided and organized differently, according to the peculiar conditions at each mine, and no one system, however well suited for one particu-

Jan 1, 1909

By R. S. Shoemaker, R. M. Darrah

Expanded markets for copper in the past few years and a consequent search for new ore bodies have revitalized the widely known but seldom applied method of producing copper called heap leaching. Heap leaching is defined here as the process applied to oxide ores which have been mined solely for the purpose of leaching. In this case, all costs of mining the ore become a part (and a substantial one, as will be shown) of the cost of the copper produced, whereas in dump leaching the mining cost has already been accounted for as a stripping cost for the sulfide ore. Of course, with newly opened ore bodies, stripping costs may be divided through accounting procedures, between the copper produced by the mill and that obtained by leaching, but in general this type of operation must be economic on the basis of the sulfide ore alone. Heap Leaching Requires Low Capitalization Heap leaching, as a beneficiation method, is unique in that it is the only process used for the recovery of a metal in which the time involved from mining the ore to metal production is measured in months instead of hours or at the most, days. Then too, after the ore body has been depleted and mining has ceased, metal production will continue for some substantial period of time. Heap leaching is also unique because unlike any other method of beneficiation, metal recovery cannot be accurately forecast ahead of time and recovery will never approach that of a conventionally milled sulfide ore or even that of a vat leached oxide ore. Counter-balancing this drawback, however, is the relatively low capital expenditure necessary to put a heap leaching operation into production and the consequence that smaller ore bodies which would not support the higher capital cost involved in a vat leaching plant can be made into producers. Stated more simply, in heap leaching the operator accepts low recovery in exchange for low capital costs and low break even point. Whether the operator chooses vat leaching with its higher recovery and higher capital costs, is a mater of economics which depends in part on the nature of the ore to decide. For instance, an ore that will vat leach in 7 to 10 days using 7 pounds of sulfuric acid per pound of copper produced might use double or triple that amount of acid during the months that are required for heap leaching.

Jan 12, 1968

By E. M. Chance

HERBERT M. WILSON, Pittsburgh, Pa. (written discussion).-Permit me to endorse the author's conclusions and their form of presentation as ,being, in my judgment, the last word 'on the subject of lights for the illumination of coal mines. I also feel that the open-flame oil lamp has outlived its usefulness, and that it should go, in the interests not only of safety but of efficiency. Where an open-flame lamp can be used with safety in non-gaseous mines, the acetylene light adds materially to efficiency by its better illumination, and to safety for the numerous reasons given by Mr. Chance. The latter, however, lays chief stress on the value of the acetylene because of its non-fouling and non-obscuring effect on the atmosphere. Another important advantage over any other form of illumination is the clear, bright light projected at the point where the workman may look for danger. The better illumination materially safeguards the worker against obstacles over which he may stumble when traveling, and against dangers from falls of roof or of coal, weakness in timbering, and similar conditions. The acetylene lamp, where it may be used with safety, has advantages even over the present electric cap lamp, in that it gives a higher luminosity; and when the miner comes to learn its signals, as he will in time, just as he learns those given by the open-flame or the safety lamp, he will find that the acetylene lamp is a fair detector not only of methane but of carbon dioxide, as clearly shown by Mr. Chance. The only, serious objection, raised against the use of carbide lamps. has been recently in Pennsylvania, due to the belief of the State Mine Inspection Department that it endangered miners working on pillar work, or other places where carbon dioxide might accumulate, or where there is lack of sufficient ventilation, and because it was believed that the indications of the carbide lamp would not give the miner sufficient warning. On this point Mr. Chance has clearly shown the fallacies of the objections. I may add that for those unable to detect carbon dioxide with the acetylene lamp, the maximum of protection would be afforded by using an open oil lamp or a flame safety lamp in such places; or, because the miner might not watch his oil light, a better, protection still would be offered by a sufficient number of daily inspections of such working places by a fire boss or other official, with flame safety lamp.

Jan 4, 1917

SINCE I have begun to tell you of the semiminerals that serve as colors, I wish to tell you of azure and green azure, so that you may know what they are. I tell you first that there are two kinds of azure, one called ultramarine blue by painters, and the other German blue. Ultra-

Jan 1, 1942

By F. F. Lines

It is not the intention of the writer to enter into a discussion of the relative merits of the duplex process as compared with the straight scrap and pig iron process, working under the same conditions, but rather to present in a general way several modifications of the former process, and then describe the method adopted by the Maryland Steel Co., as best suited to local conditions, and also to meet the metallurgical problem presented in the removal from the iron of an unusual constituent— chromium. The principal factors to be considered in. deciding whether or not duplexing should be employed are: (1) Chemical constituents of pig iron. (2) Variety and quantity of steel to be produced. (3) Relative cost of pig iron and scrap. (4) Regularity of operation. (5) Capital to be invested. (6) An existing Bessemer plant. Having decided to adopt the duplex process, several combinations may be used, viz.: (1) Acid-lined converter with basic open hearth. (2) Acid-lined converter with electric furnace. (3) Basic-lined converter with basic open hearth. (4) Basic-lined converter with electric furnace. (5) Basic open hearth with electric furnace. The combination of an acid-lined converter with a basic open-hearth furnace is the one most commonly employed, and as it is the one best adapted to the conditions encountered at the plant of the Maryland Steel Co., we will briefly outline the advantages and disadvantages of the different methods of working. There are two general methods of blowing, as follows: (1) The charge is desiliconized and partly decarbonized in the converter. On account of the difficulty in regulating the percentage of car-

Jan 1, 1916

By Linney, Robert J.

REPUBLIC Steel Corporation's iron-ore properties in the Adirondacks consist of mines, mills, and sintering plants in the Mineville and Port Henry area and at Lyon Mountain. This article will deal with the properties in the vicinity of Mineville and Port Henry. In 1938, when Republic leased the Mineville- Port Henry operations from the Witherbee Sherman Corp., these properties had just come through some hard depression years. As a result, the mine development program was far behind schedule; most of the equipment needed replacement; and above all, the entire system of mining had to be completely changed to reduce operating costs. The concentrator had been in operation for many years; the process was dry and dusty. Machinery and equipment were either badly worn or entirely obsolete. The sintering plant, also long in operation, was badly in need of repairs.

Jan 1, 1943

By R. W. Raymond

THE sudden death of Dr. Drown, on Nov. 17, 1904, brought to multitudes the pang of personal loss. Of all those who, as students at Lafayette College, the Massachusetts Institute of Technology and Lehigh University, were brought under his influence, not one can have forgotten him, and all will now acknowledge, with an unfading gratitude, what they owe in professional equipment to his wise, clear, skillful guidance, and in character to his sympathetic, stimulating personality. Outside of this wide circle, the experts of both hemispheres will lament the departure of one who, in his department of scientific inves¬tigation, both knew what work was needed, and how to do it so that it needed not to be done again. The older members of the American Institute of Mining Engineers will remember with gratitude the part he took, as Secretary from 1873 to 1884, in promoting the interest of that organization, and in shaping the plan and policy which it has followed with such noteworthy success. And, in addition to all these (though partly included among them), there are a host of friends; who can scarcely think of the public loss by reason of their own. Thomas Messenger Drown was born March 19, 1842, at Phil¬adelphia, Pa. His parents were natives of New England; and. he was the youngest of their three sons. He received his preliminary education in the public schools and the High School of Philadelphia, from which he was graduated in 1859. Be-

Jul 1, 1905

By DIFTIGIHT E. WOODBRIDGE

(Glen Summit Meeting, June, 1911,) DURING April, May, and June, 1910, I was in charge of an examination of the greater part of the Moa iron-ore area in Oriente Province, Cuba, on the north coast, near the east end of the island. My instructions, on arrival at the properties, were to check former estimates of tonnages and grades, and to re-examine the ore comprised in claims covering 44,727 acres. This work included .the running of lines dividing the properties into co-ordinate planes, the boring of many thousand feet of holes spaced at the intersections of these co-ordinates, the taking of samples of the ore penetrated, the analysis of these samples for their various constituent minerals, and the determination of the results as to tonnages, depths, and grades, both for individual properties and for the entire group. Each section of every one of the thousand holes drilled was to be compensated for depth and grade with every other, a series of simple arithmetical calculations of no slight magnitude, the mere mechanical labor of which consumed much time, but finally resulted in giving a complete average of all the essential facts for the entire area of 18,000 hectares. Had it not been for the more than willing, active, and able co-operation of the officers of the Spanish-American Iron Co., from Charles F. Rand, President, and Jennings S. Cox, General Manager, down to the most humble water-carrier, the work would have consumed far more time than it did. Papers prepared by others, and to which my present paper may be considered an addendum, elucidate, more fully than I could hope to do, the origin and geological character of these ores. I will confine myself to the situation, method and expense of exploration, and to probable courses of development and mining, with some attention to the cost of the ore delivered in the United States.

Mar 1, 1911

By LESTER H. WOOLSEY

IT IS doubtful whether anything new can be said upon this subject and, therefore, it is with considerable hesitation that l prepare this paper. On account of my recent connection with the Department of State as its law- officer, perhaps I will be pardoned if I discuss this subject briefly from the point of view of that branch of the Government. , I cannot, of course, speak for that department, since I have-no connection with it at-present, but it may be helpful if I set down certain* of the factors which in my opinion and from my experience have a bearing on this international problem. With oil-burning ships, motor vessels, motor vehicles, airplanes-all consuming, astonishing quantities of petroleum or petroleum products; with the United States having within its borders only 12 per cent. of the petroleum resources of the world, and consuming about 70 per cent. of the world's output; with the more enterprising nations wide awake to the necessity ; of obtaining and preserving as large a share as possible of the oil resources extant ; the 'problem is peculiarly and in a, very practical sense an international one.

Jan 1, 1921

By Claus G. Goetzel

POWDER metallurgy is known as the art of producing metal powders and fabricating them in a nonfusion process by a simultaneous or consecutive application of pressure and heat under controlled operating conditions. Before the advent of powder metallurgy, the high melting points of the refractory metals and nonmetals made their manufacture and use practically impossible. Today, however, the uses of refractory materials in high-speed cutting tools, surgical instruments, brake linings, electrical contact switches, and filaments in incandescent lamps are commonplace in industry. Lately designers have even been turning to powder metallurgists to develop new techniques of fabricating refractory materials for extreme-service use in high-temperature zones of such modern products as gas turbines and jet engines. The new techniques being born will undoubtedly provide industry with a great number of new alloys and materials for future designing.

Jan 1, 1948

By R. C. Neavel

One of the most important requirements to be met by any coal producer is delivery of size consists tailored to specific applications. Generally these specifications include a minimum as well as a maximum size limit. The customers of a major Indiana coal producer noticed that some shipments of sized coal contained a large proportion of undersize pieces. Also, in these shipments, the pieces which remained within the specified limits were cracked and, when handled, crumbled readily. The producer, certain that these shipments had been properly sized at the tipple, suspected that degradation had occurred in transit. The Indiana Geological Survey was requested to examine the coal from one of these shipments to attempt to determine the cause of breakage. Two basic facts about coal and coal seams led to the employment of petrographic techniques in this investigation. First, all coal seams consist of accumulations of diverse organic and inorganic constituents; and second, most coal breakage, either desirable or undesirable, can be attributed to the inherent weakness of some of these constituents or to poor adhesion between certain constituents. Analyses of degraded coal Sampling: Samples were secured from 2 stock piles of 2-by 4-inch coal in a dealer's yard. The coal in both piles had received the same treatment from mining to storage, although it had been mined and shipped on two different days. The size consist of one pile, however, appeared smaller than that of the other. The sample from the degraded pile is referred to as the slack sample, and the other is called the unslack sample. Size analyses: In order to determine the actual size consist, the samples were screened, with a minimum of rough handling, on square 2-inch, 1-inch, 1/2-inch, and 12-mesh screens. It is assumed that 100 percent of the 2-by 4-inch coal is retained on a 2-inch round screen at the tipple. Analyses of several loads at the tipple indicate that approximately 26 percent of the 2- by 4-inch coal, 100 percent of which was assumed held on a 2-inch round screen, passed through a 2-inch square screen. Twenty-six percent may be taken as the normal difference between round and square screens. Results of the analyses of stockpile coal are shown in Table 1. Cumulative percent versus size are plotted on a Rosin-Rammler chart as Figure 1. Both samples approximately follow normal size distribution; this indicates that breakage is not size preferential and also that the samples are representative of the stockpiles. Although both samples exhibit the same general size distribution, the median size of the slack sample is considerably smaller than that of the unslack sample. Fifty-five percent of the unslack sample was undersize (29 percent greater than the normal 26 percent difference), and 83 percent of the slack sample was undersize (57 percent greater than the normal 26 percent difference). Both piles contained a greater percentage than normal of undersize coal; this indicates that they were both affected by degradation, but to a different degree. Bedding-plane analyses: Coal, because of its laminated nature, will break preferentially along bedding planes, especially where adjacent constituents are poorly cemented to each other. Subsequent breakage perpendicular to the

Jan 1, 1961

By Carl W. Volz

NORWAY'S metallurgical development, which has extended over many centuries, is intimately associated with that country's unique topography and climatic conditions. It is a rugged mountainous country, with a most irregular shore line, bordered by thousands of islands forming a natural protection for shipping. There are an endless number of lakes, and innumerable rivers and waterfalls, many fed by glaciers and melting snow. Rainfall is abundant. Though half of the country is north of the Arctic Circle, it is warmed by the Gulf Stream, so that the average temperature is about 45°, or 20° higher than other parts of the world in the same latitude. A sub-

Jan 1, 1935

By Thomas T. Read

EVERYONE engaged in the teaching of mining engineering will, I suppose, agree that the most difficult subject to teach is "Mining Methods." One primary difficulty is that the students taking the course have either had no previous experience in mining, or else they have had; either seeming to be somewhat of a drawback. The students who are unfamiliar with mines find it difficult to visualize underground conditions, as described and illustrated with sketches and maps, while those who have had underground experience seem to 'find it difficult to visualize anything much different from that which they have already seen. This reminds one of the remark about the Presbyterian doctrine of predestination, to the effect that "you are damned ,if you do; and damned if you don't."

Jan 1, 1930

By V. Lessels, D. J. Buckwalter, D. H. Rose

At White Pine Copper Co.'s operation in the Upper Peninsula of Michigan, the company has been losing more than four lbs of copper in each ton of sand tailings. With an average rate of 12,000 tpd of sand going to the tailing pond daily, the company has been losing more than 14 million lbs of the red metal annually. With an eye aimed toward lessening this loss, White Pine engineers in 1959 initiated a study on techniques for recovering this "lost" copper from the sands. Inasmuch as the flotation operation was considered to be optimized, a logical approach seemed to be leaching. For various reasons ammonia, ferric chloride, acid, and biological leaching were ruled out as impracticable. This led to a consideration of cyanide leaching as practiced in the precious metals industry.

Jan 8, 1967