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By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985

By Thomas H. Sheehan

The purpose of this paper is to present an application of computer technology to assist the mineral company financial executive in assessing exchange risks. The paper is divided into five parts: Background, Translation Approaches, Theory, Empirical Validation, and Conclusion. BACKGROUND Exchange risk results from a change in the rate of exchange between a host and a home country's currencies. Legitimate reasons exist for changes in the currency exchange rates among countries in a world with over a hundred different currencies. These reasons include: different economic growth rates, social factors, cultural heritages, and political motivations. The problem of exchange rate changes are perennial and exist whether the world operates on exchange rates or floating exchange rate practices. The cause of the problem is trade and international payment imbalances. If one accepts the premise that exchange rates fluctuate over time, then the mineral company financial executive faces a continual process of reassessment of the impact of exchange rate changes on the financial worth of his company. (1) The mineral company financial executive prepares balance sheets and income statements that are audited by certified public account- ants annually for shareholders, bankers, and tax authorities. The financial executive translates assets and equities denominated in foreign currencies into domestic dollars, e.g., Japanese firms convert to Yen, French firms convert to Francs, and so on. When figures from foreign subsidiary operations are consolidated into the balance sheets of the parent corporation, estimates of the company's finan-

Jan 1, 1977

By F. Lynwood Garrison

Except in the old Catalan forge, or its modifications, attempts to make iron and steel directly from ore in a practical and economical manner have failed so frequently and completely that such schemes are looked upon with justifiable distrust. Without exception, all have failed from one cause or another, although in some instances every indication of a practical success was manifest in the beginning. It is, therefore, necessary to carefully examine and consider every detail affecting the process, or more properly, furnace, under consideration. This I have done to the best of my ability during a long visit to Russia last summer, and after satisfactorily observing the practical success of the furnace in the iron works of Count Stroganoff at Dobriansky in the Government of Perm, I decided to investigate as completely as possible the history of similar furnaces in Finland and Russia. These data, sifted and verified with the greatest possible care, form the substance of the present paper.* An illustration on page 321 of Percy's Iron and Steel shows the old type of Osmundssmide or harkugnar, which has been in use in Northern Europe since pagan times. Fig. 1 shows a furnace of this kind. It should, perhaps, more properly be called a high-bloomary furnace or forge, the Swedish word hark meaning bloom or loupe. It was with this type of furnace that Mr. Husgafvel began his experiments at Porsaskoski in 1875. Attempts to obtain better results with larger furnaces of this type were failures, as every bloom or loupe obtained necessitated blowing out the furnace with a consequent large waste of fuel. A larger furnace of course increased this waste with no corresponding advantage. A movable hearth of threeeighth inch iron, lined with a mixture of clay, quartz and lime, was next tried, but in consequence of the frequent repairs of this lining,

Jan 1, 1888

By William G. Krantz

The increased service demands on some of the products of the National Mallcable Castings Co. prompted it about eight years ago to investigate the electric furnace, both in America and in Europe. The process had already been sufficiently developed in Europe to lead us to believe that the electric furnace would most nearly meet our requirements. After further investigation and consultation with the highest authorities on the subject, we decided upon the Heroult type as the simplest and most practicable. In 1910, we built a furnace of this type, of 300 Ib. capacity, for experimental purposes, and although it was crudely constructed the quality of the material we were able to make justified the installation of a 6-ton Heroult furnace in 1912. This furnace has three electrodes, 17 in. in diameter, uses three-phase, 60-cycle current, and is equipped with Thury regulators, which give US good regulation and a uniform load on the line even when cold melting. The power factor of the furnace is 04 per cent. Since July, 1912, the furnace has been in continuous operation, producing up to the present time over 20,000 tons of both carbon and alloy steels of varying analyses and of exceptional quality. Both cold-and hot-metal charges have been used, with a power consumption of about 150 kw-hr. per ton in the case of hot-metal charges and from 500 to 600 kw-hr. per ton in the case of cold charges. The electric energy consumed varies according to the final analysis of the steel and the amount of refining required. Too much cannot be said about the refining possibilities of the electric furnace, for no other method of steel manufacture can compete with the electric in this respect. In proper operation lies the whole secret of success. That steel has been made electrically means nothing, for when the furnace is operated under oxidizing conditions the quality is no better than that of open-hearth material; but when properly made, electric steel is as good as

Jan 1, 1916

By T. Sterry Hunt

Jan 1, 1882

By S. Weinig, J. Winter

The grain boundary adsorption of solutes as a function of bulk concentration and solution temperature was studied using internal-frictimz techniques. From the variation of the cor-responding energy of activation for the Phenomenon, the inter-actior2 energy between a solute atom and a high-angle boundary was calculated. Interaction energies in the range of 0.3 ev were obtained, and were used to obtain the actual concentration of solute at the grain boundary. In corroboralory creel, studies the direct grain boundary contribution to the total creep strain was measured. It was found that the interface creep varied with the type and magnitude of the solute adsorbed. Subscribing to the theory of their being energetically favorable sites at the grain boundary for solutes of both Positive and negative size deviations, ternaries were investigated in Which solutes of both types were present. A marked increase in the resistance to grain boundary creep was manifested. THE major difficulty which has been encountered in investigations of the grain boundary segregation of solutes has been the lack of a sufficiently sensitive method of measuring the amount of adsorbed solute at the boundary. For the general case of a high-angle boundary, no direct method of measuring the adsorption at the boundary has been found to date. Internal friction has been used in several studies of grain boundary adsorption1-3 and although it is somewhat indirect, it was demonstrated to have the necessary sensitivity. In this investigation the authors have used internal-friction techniques in conjunction with a study of the grain boundary contribution to the total creep strain. As both parts of the investigation were performed on the same specimens it was possible to combine a highly sensitive technique with a somewhat more direct method in order to obtain information about the adsorption phenomenon. From internal-friction studies the rate of increase of the activation energy was observed to be a function of the difference in size between the solute and solvent atoms. It was proposed that if Gibbs' adsorption isotherm is considered, i.e., where r is the excess solute at the boundary, c is the bulk concentration, and ay/ac is the change in grain boundary energy with bulk concentration, then AH b/ac must vary in the same way as ay/ac and therefore In this way a relative measure of the grain boundary adsorption of solutes is directly obtainable from in-ternal-friction studies. If the previous work in the field of grain boundary adsorption of solutes is examined, certain apparent information is desirable if the phenomenon is to be understood. The most important questions that must be asked are as follows: 1) Is the adsorption of solutes at the grain boundary an equilibrium process? 2) Can the Mott model of the grain boundary be used as a basis of setting up an elastic interaction between the grain boundary and solute atoms? 3) Is it possible to obtain an exact measure of the excess solute at the grain boundary as a function of temperature and bulk concentration rather than merely a relative measure of the adsorption 4) Are the conclusions obtained from an indirect method such as internal-friction studies meaningful in considering gross grain boundary effects such as creep? EXPERIMENTAL PROCEDURE The material used in this investigation was Bureau of Mines "superpurity" titanium (79 Bhn—1500 kg

Jan 1, 1960

By Reynold Q. Shotts

Data are presented which show that fractions of varying densities-from the same coals are oxidized at different rates by nitric acid. From oxidation data, the approximate quantity of "bright" and "dull" components may be calculated. Definite relationships between oxidation rate and rank are shown for density fractions from at least two bituminous coals.

Jan 1, 1950

By Charles H. Fulton

THE Engineering Education group began its sessions Tuesday morning, Feb. 16, as a Committee and wound up the day as the Institute's fifth " Division." C.II. Fulton presided. The first paper for discussion was entitled "Teaching Management in Engineering Schools,"' by Eugene McAuliffe, president of the Union Pacific Coal Co., space for which may be found later in these pages. In it, Mr. McAuliffe argued that an engineering student should be taught the knowledge of men, much as a medical school teaches surgery. He then went on to indicate, out of the wealth of his administrative experience, the problems an executive needs to be equipped to handle, and said that every student engineer should look on himself as a potential manager.

Jan 1, 1932

By HAROLD VINTON COES

MANAGEMENT has been tersely defined as getting things done through the efforts of other people; but before we proceed further, let us distinguish between administration, management, and organization. Oliver Sheldon in his book, "The Philosophy of Management," offers the following definitions: Administration is the function in industry concerned in the determination of the corporate policy, the co-ordination of finance, production, and distribution, the settlement of the compass of the organization, and the ultimate control of the executive.

Jan 1, 1943

By J. M. Karpinski

The need for standard test methods in the minerals beneficiation industry is growing with the increasing complexity of our processes and the more stringent requirements imposed on the quality and uniformity of our products. Although solutions of our problems have never been easy, they will become increasingly difficult to achieve unless we can develop a reliable and reproducible set of test methods. Historically speaking, our need was greatest for methods of chemical analysis. As these methods developed, they improved our ability to determine the grade of ore and measure the effect of our beneficiation attempts. The entire concept of grade and recovery is only as old as chemical analysis. Then came physical measurements. Each new concept in minerals beneficiation was related to certain properties and required corresponding test methods: specific density for jigging, magnetic susceptibility for magnetic separation, and tumbler strength for pellets. And associated with each process was the need for size determination. Size measurement is probably the first physical test ever conceived, and yet we are still improving on it. Dry sieving was quite acceptable for direct-shipping ores, but we had to go to wet sieving to control pelletizing and flotation. Subsieve analyzers have extended our routine measurements to the subsieve sizes, hut not below a few microns. As we all know, the solution of slimes- beneficiation and pollution-abatement problems is hampered by the lack of reliable and reproducible test methods in the fine-particle size range.

Jan 1, 1971

By Harlowe Hardinge, R. C. Ferguson

Laboratory and plant data covering 12 different operations show that lower than "standard" ball mill speeds increase grinding efficiency. In the case of high pulp-level mills, the gain is so great that the increase in capital cost of the larger lower speed mill will pay for itself in less than a year's time.

Jan 1, 1950

By A. R. Gregory, M. R. J. Wyllie

The literature reveals that scant attention has been paid to the systematic experimental determination of the formation factors of unconsolidated porous media. No experiments appear to have been made on the effect of increasing cementation on the formation factor of an initially unconsolidated porous medium. Measurements have accordingly been made of formation factors as a function of porosity for aggregates of spheres in the porobity range 12-56 per cent and of cubes, cylinders, discs and triangular prisms in the porosity range 30-45 per cent. The results are examined in the light of the theoretical equations of Clerk Maxwell. Fricke and Slawinski. Aggregates of unconsolidated spheres and beach sands have been artificially cemented with silica and the formation factor-porosity relationships determined. A theory is outlined which seeks to explain the results obtained and which postulates that formation factor and porosity data for consolidated sandatones may be used to determine the original porosity of the unconsolidated sands from which the consolidated sandstones were derived. It follows also that for consolidated sandstones F' = C where F is formation factor, fractional porosity and C and k are constants. INTRODUCTION All schemes of electric log interpretation implicitly or explicitly require the use of formation resistivity factors or? as they are now generally called. formation factors. 'The originator both of the concept of formation factor and of the use of formation factor data in electric log interpretation was Archie.' More recently it has been suggested that formation factors are of value in describing fluid flow in porous media. A full discussion of this problem together with adequate reference.: has been given by Wyllie and Spangler.' In spite of the theoretical and practical importance of the subject, there appear to be remarkably few basic formation factor data in the petroleum literature. A wider search reveals that this situation is nut confined to the literature of the to industry. at various times over the last century, attempts have been made to compute the theoretical relationship between the formation factor and porosity of simple systems of unconsolidated particle.. However. the formulae derived are not all identical and the experimental evidence adduced in support of each i; not wholly convincitng. Most of the experimental work has been carried out on system. of unconsolidated spheres, although some attention has been given to systems of spheroids and cylinder. Other simple shapes have received neither theoretical nor experimental investigation. The writers feel that a better understanding of the formation factors of complex systems of practical importance requires a firm foundation of reliable experimental data applicable to simple systems. Accordingly, they have reviewed the relevant literature and have determined experimentally the relationship between the formation factor and porosity of unconsolidated aggregates of particles of regular geometrical shapes. Some experiments have also been carried out to investigate the effect of cementation on the formation factor-porosity relationship. PREVIOUS WORK Although the term formation factor was not used. the relationship between the resistivity of a solution containing dielectric solids and the resistivity of a similar solution not containing solids is an old and important problem. The formation factor of a system of dispersed spheres as a function of porosity was considered by Clerk Maxwell. Maxwell arrived theoretically at the following expression: where F is formation factor and fractional porosity. Lord Rayleigh' also examined the problem of the formation factor of systems of spheres and cylinders and concluded that for spheres Clerk Maxwell'.; expression gave a value of F whirl]. at low porosities particularly, was too small. However,

Jan 1, 1953

By Henry Mackay

THE interesting paper recently submitted by Messrs. Tobelmann and Potter' shows that chemical problems have developed which are of great interest in this new and important branch of metallurgy. Those who realize what a process of this kind really involves will agree that it deserves a better name than "leaching process." The word leaching conveys the idea that the copper is simply leached out of the ore with acid and then precipitated on iron; the chemistry of such a process would be of little interest. As, however, during the first year's operation of this plant 24,400,532 lb. (11,067,837 kg.) or about two-thirds of the produce, was electrolytic copper, while 7,992,033 lb., or about one-third, was cement copper, it would seem more appropriate to term the process electrochemical. It further appears, from the particulars given, that efforts have been made to have the entire production in the form of electrolytic copper. -This could be done if the chemistry of the problem were kept in balance, so that it would not be necessary to discard any solutions that carried copper and acid of commercial value. A process, such as that under consideration, in which the copper is precipitated from solution by electrolysis, the solvent being at the same time regenerated, is one that requires special chemical and electrochemical knowledge and experience if all the -copper in solution that has been extracted from the ore is to be successfully and economically produced as electrolytic copper. The object of this paper is to discuss, from the practical and theoretical standpoints, the chemical and electrochemical problems involved in the working of a process of this kind, and' which must be solved to keep it in chemical and electrochemical equilibrium. In such a process, if the chemical balance is maintained, a solution can be used alternately as a

Jan 9, 1919

THE committee in charge of arrangements for the meeting of the Institute in September has com-pleted its program. The headquarters of the meeting will be at the Palace Hotel, San Francisco, and the registration committee will be at the hotel all day on Sunday, Sept. 24, and from 8 a.m. until noon on Monday. On Sunday afternoon, automobiles will be available for sightseeing trips around the city. Monday will be devoted to technical sessions. In the morning, there will be sessions on Mining and on Iron and Steel; in the afternoon, sessions on Mining and Milling. At these sessions, in addition to the papers mentioned in the tentative list printed in August, there will be presented three papers on the geology, mining and milling of the Comstock lode; one on the Aztec mine, Baldy, N. M.; one on the Colombian oil fields; and one on charcoal precipitation of cyanide solutions. The luncheon on that day will be Dutch Treat, for men only, at the Engineers Club. On Monday evening, there will be an informal buffet supper at the home of F. W. Bradley. On Tuesday morning, a party of 50 men will leave for Hetch Hetchy. During the four days of the trip, the party will see the Priest tunnel and earth dam under construction by steam-shovel and hydraulic-fill methods, the Big Creek shaft and tunnel, early intake power plant and tunnels and the Hetch Hetchy dam under construction. For those who remain in San Francisco, Tuesday will be "San Francisco Day." There will be motor trips to the Presidio, Cliff House, Golden Gate Park, and other points of interest, and shopping trips to Chinatown. On Wednesday, "University of California Day," the party will be guided through the university by members of the Mining Association, the affiliated stu-dent society, and will see the Greak Theatre and not-able buildings. Thursday will be "Leland Standford, Jr. University Day." Automobiles will leave the Palace Hotel at 10 a.m., and will return from the university at 4.30 p.m. Friday has been reserved for trips to the Selby Smelter, to Mt. Tamalpais, or to other points of interest. Arrangements will be made to visit the mines or gold dredges in California, if members desire to do so, but such trips must of necessity be considered special trips and arrangements will have to be made to suit the convenience of the individual or party. The Golf Committee will make arrangements for those who wish to play golf.

Jan 9, 1922

By Woolf, W. G.

Filtration of hot (60°C) supersaturated zinc sulphate solution (sp gr 1.540) from slimy leach residues at the electrolytic zinc plant of Sullivan Mining Co., Kellogg, Idaho, is de- scribed. Separation of liquids and solids in the finished leach is by Burt filters modified to meet conditions of high-acid, high-density process for electrolytic zinc. Operating characteristics of the Burt filter on this pulp are presented.

Jan 1, 1950

By Mark L. Requa

During the past two years California has developed a new and important oil-field: I refer to Midway. This field produced the famous Lake View gusher, which is credited with a total production in excess of 8,000,000 barrels. Fortunately for the oil industry of the State, this well is now a thing of the past, and nothing, save a great crater-like opening marks its location. The pipe is entirely worn away and gone; and it is a matter of serious doubt if there can be anything done that will cause the well to produce again. Fortunately, also, there have been no other wells in that field or elsewhere throughout the State that in any may compared with the Lake View. Midway is noted for large wells, of from 500 to 2,000 barrels production; but the decline is rapid, and a few months serve to bring the output down to a few hundred barrels. In the oil-territory heretofore blocked out as proved and probable, there have been, during the year, many changes. Some areas which were expected to be fairly productive have apparently failed; others, more strictly "wild-cat," have come in; while in some of the older fields there are properties which are beginning to shorn evident signs of exhaustion. The total area of proved territory will therefore probably suffer but small

Jan 1, 1912

By Leo J. Miller

It is both an honor and a pleasure for me to be the keynote speaker for the Paul F. Kerr's Symposium on Applied Mineralogy. Professor Kerr was a man for all seasons to his students, and he treated all students as distinct individuals. Philip Bethke in his memorial to Dr. Kerr summed up our remembrance best by stating that "We have lost our most successful educator-administrator-scholar, who was our steadfast teacher-counselor-mentor-friend." His unique trait was the ability to bring out the best in a variety of individuals In order that their performance was at the peak of quality.

Jan 1, 1985

By Mark David Rankin

This paper represents a general assessment of the primary factors driving the market for mobile offshore drilling rigs and the utility of those factors as choice variables for the offshore drilling program planner.

Jan 1, 1982

By D. K. Crampton

ON giving thought to the subject of this paper, my first reaction was that many and striking changes have come about as a direct result of the war. However, more careful analysis indicates that few, if any, of these changes can be wholly attributed to it. The actual situation is that all these changes were conceived and most of them at least partially executed in re- cent prewar years, it remaining the role of war to achieve results in a fraction of the time that might normally have been taken, lacking its driving impulse. The further discussion will therefore be with the premise that the individual changes have been greatly hastened rather than directly and primarily caused by any war conditions. Co-operation among copper alloy producers on production problems is agreed to be much worth while. The industry was too long noted for jealousy and secrecy as to equipment, methods, and even materials produced. Gradually, a more open and co-operative policy evolved but even just prior to the war the interchange of ideas was relatively cautious and limited. The need for a great increase in production in record time fostered a more co- operative attitude; exchange of ideas and experience concerning all phases of production increased tremendously to the benefit of the individual participants and thus the war effort, too. This more united effort has undoubtedly led to many specific improvements in process or equipment and these in turn to more rapid and economical operation than could have taken place on an each-for-himself basis.

Jan 1, 1944

By AIME AIME

The Washoe plant, 1 in Anaconcla. Mont., together with the local street-railroad, ranches a. foundry and machine-shop a brick-plant and the Montana hotel, form a property under one management; to which should be added the mines in Butte owned by the company, from which part of the ore-supply of the plant comes. The Anaconda Copper Mining Co., controlled by the Amalgamated Copper Co., was reorganized under the laws of Montana in 1893. A map of the plant, showing the numerous departments and illustrating the details of tracks, pipe-lines, and charging-stations for compressed-air locomotives, is given in Fig. 1.

Jul 1, 1906