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By Michael Bradbury

INTRODUCTION A major change in financing exports in recent years has been the decreased importance of subsidized export credits, following the commitment of the OECD countries to eliminate the subsidy element. Subsidized export credit rates are now often more expensive than market rates as the financing for exporters has decreased in volume and importance. The forfait market, in recognition of this decreasing importance, provides a rapidly expanding source of nonrecource finance for exporters. The following is a step by step guide to what it is, how it works, its benefits and problems. WHAT IS FORFAITING? Forfaiting is not new. It has been used in Europe for about 25 years to provide export finance for both capital goods and commodities without recourse to the exporter. Although long the preserve of exporters in Germany, and more lately Italy, forfaiting is now used increasingly by exporters in Great Britain, the United States, Canada and Scandinavia. It is a fairly simple operation with easy straight-forward documentation. The transaction involves the purchase by the forfaiting bank of a bill of exchange or a series of bills without recourse to the exporter. These bills will have been drawn by the exporter, accepted by the importer, and will usually bear the unconditional guarantee of the importer's bank. They are normally drawn payable at intervals during the credit period agreed between importer and exporter and are purchased at a discount by the forfaiter. The exporter thus obtains his cash payment and the importer receives his credit period. The forfaiter collects the amount of the bills as they mature directly from the importer. Credit periods vary, depending upon the type of goods and the country and commercial risk of the importer. The period is generally between one and five years with six monthly maturities. The usual forfait currencies are US dollars. Deutschmarks and Swiss francs and others, such as sterling, French francs, and the Scandinavian currencies are being used more frequently. CHOOSING FORFAITING Most types of financing require the continued involvement of the exporter in the financial side of the transaction during the credit period. Forfaiting has certain comparative advantages. In particular, it is possible to forfait 100 percent of the risk without recourse to the exporter, unlike government sponsored export finance schemes, where some retention of the risk by the exporter is required. In addition, exports from country sources do not present problems and forfaiting can also cover trade within the EEC. Other benefits for the exporter are: (a) The exporter's balance sheet is improved; debts are turned into cash thus improving the liquidity of the company and enhancing its cash flow. And there are no contingent liabilities for bills of exchange. (b) If the sales contract is in a foreign currency forfaiting removes the risk to the exporter of adverse movements in foreign exchange during the credit period. (c) Fluctuations in interest rates during the credit period can be ignored since in forfaiting the transaction is usually done on fixed interest rate terms on a discount basis. (d) The political and transfer risks are taken by the forfaiter. (e) The commercial risk is taken by the forfaiter. (f) The costs of administration and collection etc. during the credit period are removed.

Jan 1, 1985

By C. C. Miller, A. B. Dyes

The cost of finding and developing new reserves is continually rising. We must meet these rising costs with more economical operations. This can he accomplished if we revise our ideas of proper well spacing and well allowable to consider the concept of optimum well spacing. According to this concept, the optimum spacing is the one which leads to the maximum present worth for a reservoir when ail factors affecting total cost and total revenue are considered and when the wells are produced in the most eficient manner. Application of this principle efficiently utilizes available well potential and properly considers the recovery eficiency in addition to fixing the spacing on the basis of the amount and value of the oil to he recovered. This Study presents an analysis of one producing zone containing low gravity crude to illustrate the effect of these factors on the present worth and on the optimum economic spacing under two production drives—-evolved gas and water drive. The maximum present worth occurs when the optimum number of wells for open-flow operation is employed. Frequently, this optimum development cal1s for very wide spacing and the ideal field rates are not unreasonable. Under other circumstance. where proration is necessary, an optimum combination of well spacing and well allowable exists which permits production at relatively high rates. The optimum well density in a field depends on the recovery efficiency and the valule of the oil. In solution gas-driven reservoirs this optimum spacing for operation at high producing rates can vary from extremely wide spacing to handle viscous low gravity oil in thin formations to relatively close spacing in thick sands where good recoveries are expected. Because of the better recovery from water-driven fields, the optimum spacing in these fields is closer than in solution gas-driven fields. Also, the water encroachment pattern is dependent upon the well spacing, and an adequate numher of wells is needed to assure a good sweep eficiency. The economic optimum well density in a water-driven field is high enough for this purpose. INTRODUCTION From year to year domestic oil becomes more difficult to find. The fields we do locate are frequently smaller and deeper than older fields and the costs for men, material and equipment are continually rising. To replenish our reserves we must continue to search for and develop new fields, but experience has shown we cannot expect prices to rise in proportion to costs. Consequently, we must meet increasing costs by more economical operations. A vigorous effort is being made within the industry to improve exploration methods, to cope with the problems of deeper drilling, and to obtain a secondary yield from older fields. Many significant contributions have resulted from these efforts. The economic operation of new fields can be further improved by developing these fields on optimum spacing and producing the wells at higher rates. This would avoid the drilling of unnecessary wells and provide additional capital for seeking new oil. While the benefits of these practices are obvious, the problem of defining the optimum development of a field for natural depletion can become very complex. A study of the effect of well spacing and several reservoir variables on economic worth of a specific field is reported here to illustrate the problem and to show the magnitude of the benefits to be realized. This study is necessarily limited to the field conditions selected and is not intended as a general solution of the well spacing problem. It does, however, indicate factors to be considered, the trends to be expected, and the direction in which we should proceed in developing new fields. NO consideration is given to land and legal considerations which might arise. METHOD OF ANALYSIS The optimum method of developing and producing a field is to use the combination of spacing and prora-tion which gives the maximum return. In addition, we do not want to lose recovery. These considerations of maximum return and maximum recovery present no serious conflict. The value of each method of operation is conveniently expressed in terms of its present worth. According to the present worth method of evaluation,' an acceptable annual percentage return is assigned to the operation, and all incomes, capital costs, and expenses are discounted at this rate to the start of the operation. This net value is the present worth. If we apply the same discount rate to several alternate methods of operation, the one yielding the greatest present worth is the best method. If we express net income in terms of price per barrel of oil produced, drilling and equipment costs on a well basis, and expenses as cost per well year, this evalu-

By AIME AIME

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

Jan 1, 1921

By Wilhelm in der Schmitten

A necessary condition for a uniaxial stress distribution in compression testing is that the specimen end surfaces make full contact with the apparatus compression plates. In addition all compression surfaces must be machined perpendicularly to the loading axis. In general this condition is not sufficiently fulfilled in a simple apparatus. Therefore on application of the load the compression plate may first touch the specimen at one point only. This may cause crumbling of the specimen if the material under investigation is brittle (e.g., ionic crystals). It also precludes a precise study of the beginning of deformation as the effective cross sectional area is unknown. In addition a complex stress state is set up which renders quantitative work impossible, e.g., on dislocation density and arrangement as a function of stress. To overcome these difficulties a "self-adjusting" upper compression plate is required. A simple and reliable method of achieving this is shown in Fig. 1: A steel hemisphere is placed on the specimen. As soon as the compression plate (which no longer needs precise machining) makes contact with this hemisphere the load is uniformly distributed over the whole specimen surface, and a homogeneous uniaxial state of stress results. An advantage of the method is that the loading is always central, even when the specimen surface is not parallel to the compression plate (Fig. 1, dashed line). Therefore to a first approximation a uniaxial state of stress is maintained if the misorientation of the specimen end surface is small. Two typical stress strain curves of identically prepared sodium chloride crystals are shown in Fig. 2; curve 1 was taken without and curve II with the hemisphere under otherwise identical conditions. The improvement in the accuracy of defining the beginning of elastic and plastic deformation is clearly indicated. The writer wishes to thank the Deutsche Forschungsgemeinschaft for financial support, and Professor P. Haasen for providing facilities for this work.

Jan 1, 1962

By James Douglas

IN discussing the waste upon which hinges, or is supposed to hinge, so largely the preservation of our national resources, the conclusions reached would be more reliable if actual ex¬perience were consulted, and fewer deductions were drawn from general statements, which are often the product of the imagination. It cannot be questioned that the value of by-products has not been sufficiently appreciated by us, and that our, tardiness in recovering the useful ingredients of the escaping gas of our coke-ovens is one of the most glaring instances of shortcoming in that direction. And yet even for that sin there is some palliation in the immature condition of affiliated industries. I presume that it is admitted, without argument, that, except under very exceptional conditions, all the elements cannot be recovered from most of the ores or natural products. which we treat. While it is a shame that the by-products from our coke-ovens should be dissipated, Edward W. Parker's report to the U. S. Geological Survey for 1906' supplies a fairly good excuse in justification of this appalling waste. He says (pp. 773 to 774.)

May 1, 1909

By J. Koskinen, P. Vanninen, T. Leskinen, A. Leppala

Continuous and accurate analysis of slurries has become a critical requirement in mineral processing. With on-stream assay data, automation procedures can be employed to obtain higher recovery and improved control of production. The Courier system was developed by Outokumpu Oy, taking advantage of mineral processing know-how, to provide means for achieving these objectives in the company's ore concentrator operations. It became evident, based on early experience with on-stream analysis, that the Courier should be a complete system to fulfill all functions of the analysis operation. The system includes equipment and techniques for primary sampling, sample preparation for assaying, and processing of data for final assay results. In addition, the on-line X-ray spectrometer unit was developed specifically for industrial use, incorporating a number of technical advances. A new system for converting spectrometric data to assays is based on a physical model programmed on a digital computer. The Courier system is furnished on a turn-key installation basis incorporating all elements needed for operation including calibration. The experience to date with the Courier system at the Pyhäsalmi concentrator is summarized. Reference is also made to recent results with installations at the Outokumpu and Vihanti concentrators.

Jan 1, 1972

By Betty J. Laswell, Gerald W. Laswell

Rotary drilling in modern open-pit mining is usually considered the lead phase which not only establishes the production rates but frequently limits them. From this viewpoint alone, the drilling phase must be maximized. The drill phase is the step that permits all the other operational phases to function within their design limits. This means that, in most cases, the drill is literally run to destruction to ensure that the shovel will be able to smoothly and consistently load a manageably size muck, the haul trucks can carry a balanced load without having a boulder dropped through the bed, and the crusher can devour constant rock size.

Jan 8, 1978

By Games Slayter

NO reasonably well-informed person believes that the role of minerals, both metallic and nonmetallic, will be any less important in the future than it has been in the past. The contrary is true. Industrialization is based on mineral resources and man's ability to make use of them. A nation's standard of living, its political and military power, will continue to depend largely upon the extent to which it is industrialized-and minerals are the raw materials both of the machine and the power to run the machine. Minerals are also the raw materials of human health and stamina. The world's healthiest, most vigorous, and most long-lived peoples have always been those that have lived in regions of the globe where the earth is rich, and kept rich, in the phosphates and other minerals required for the production of the so-called growth foods. Only a small proportion of the land surface of the globe is suitable under any circumstances for large-scale production of these and other essential foods. As things stand, only a part of this land is capable of such production either because the soil minerals have been exhausted by cultivation, or because they never existed in the soil in sufficient quantities.

Jan 1, 1943

By KENNETH CROPPER

USUALLY we forget about the things which move along smoothly. There are no causes for worry when there are no troubles. But when troubles arise we must put forth some thought and effort to alleviate them. No one "worries about his automobile until it begins to knock, develop flat tires, or refuses to start. However, when these ailments become apparent we get wide awake on the spot, and do our best to repair the car. So we find ourselves now. The old bus seems to hit all the ditches. There is rough ground on all sides and none of us is able to do anything toward improvement. A state of pessimism stares us in the face, and there is sufficient cause for it. With lead at 3.75 cents, copper about 8 cents, zinc under 4 cents, -and silver about 26 cents, one has a reason for grief. When we think of the 5000 or less men employed in Utah mines and smelters in 1931, as compared with about 12,000 in 1929, the calamity seems even worse. In view of the present economic crisis we cannot even think of new men getting a job.

Jan 1, 1931

By John Johnston

THIS necessarily brief sketch will attempt to summarize the high lights of perhaps the best meeting so far held by the Iron and Steel Division. All sessions were well attended and the discussion was vigorous and of a high order. The technical sessions opened. on Tuesday morning. "Precipitation Hardening of Copper Steels" was discussed by Cyril S. Smith and Earl W. Palmer, and dealt with steel with a 1 per cent copper content. Discussion brought out that there were no fabricating difficulties, but that the surface might be somewhat checked due to intergranular penetration of copper which could be easily taken care of. Probable advantages of steels of this type for high temperatures were pointed out. "An Improved Nickel-chromium Hardened Chilled Cast Iron," by J. S. Vanick, described a wear-resistant cast iron and evoked a lively discussion.

Jan 1, 1933

By T. B. Counselman

WHEN one thinks of Minnesota iron ore, one thinks of big open pits, where high- grade ore is simply scooped up with a power shovel, loaded into cars, and hauled away for shipment to the blast furnace. On the western end of the Mesabi range, however, are large tonnages of iron ore which contain too much silica to be used directly in the blast furnace, and these ores must first be concentrated to a purer form. The Mesabi range is about 100 miles long and a maximum of 3 miles wide. The iron formation, which in its unaltered form is called taconite: consists of a banded iron- bearing chert. Where the high-grade ore bodies occur, these have resulted from folding and cracking with sub- sequent leaching out of the silica, leaving the iron oxide behind. The big open pits and the underground mines are situated in these concentrations.

Jan 1, 1941

By G. L. Oldright

THE metallurgist is familiar with the rapid development of concentration -by flotation and smelting in the reverberatory in recent years, brought 'about chiefly by the exhaustion of' bodies of .rich, coarse, direct smelting ore. Geologically speaking, in many porphyry-copper districts, the richer contact or replace let deposits surrounding 'the main ore-forming igneous intrusion have been exhausted, and it is necessary to beneficiate the copper minerals disseminated throughout the mass of the intrusion itself. The organization of great companies to treat such low- grade ores on a large scale and the practices resulting from the necessity for an economic method of treatment 'are among the most prominent metallurgical developments of the past decade. It is interesting to note the effect of the present trend of practice on the inter-relationship of the concentrator and smelter, on the constituents of the smelter charge, and on smelting in general.

Jan 1, 1925

By James E. York

THE honor so fairly earned and so incompletely and tardily paid to Henry Cort, the inventor of the puddling-furnace and the, rolling-mill, has been fully set forth by Mr. Charles H. Morgan,1 and needs no further emphasis here. In view of the importance of the rolling-mill in the treatment of iron and steel, the paucity of information concerning it is surprising. With the exception of a hook, written about 35 years ago, by Peter Bitter von Tunner, an Honorary Member of this Institute, and of desultory articles on simple sections, which have appeared in technical journals, I know of no pub¬lication attempting to treat this subject, although volumes have been written on the scientific theory and technical manipulations involved in other branches of the iron- and steel-industry. This strange anomaly may be due to the fact that roll-turning cannot be called a scientific business. It does not ordinarily come within the range of an educated engineer; yet it cannot be performed by an ordinary mechanic. It demands some of the qualifications of an engineer, in designing, and those of a mechanic, in execution. The men who have followed this trade have controlled the training of their successors. In many cases the technical knowledge required bas been handed down from father to son, and there has been a motive of private interest to prevent its public dissemination. Moreover, the statement of the various principles involved in the process would require, besides manual experience, a degree of scientific knowledge which roll-turners do not usually possess; and, finally, any book on the subject, in order to possess real, practical value, would have to be so fully illustrated as to make it very costly to publish. Regarding my own experience, I may say that I served a six-

May 1, 1906

By Francis M. Walters

THE problem of making iron-manganese alloys of scientific purity is a rather difficult one. They cannot be prepared in air because of the readiness with which the metals oxidize at the temperature of melting; and they cannot be prepared in vacuum because of the, high vapor pressure-of- manganese. The very property of: manganese which permits it to be purified interferes with the utilization of the best method of making pure alloys. Accordingly, it is necessary to use a gas atmosphere which will not affect the-properties of the alloys. The gases available for the purposes are hydrogen; helium and argon. Nitrogen forms intermetallic compounds with manganese very readily. Hydrogen, while valuable as a deoxidizer and having the advantage of being comparatively cheap, is explosive over a wide range and, has a rather high thermal conductivity. Helium is reported as, costing little but is difficult to secure at a reasonable price and also has a conductivity nearly as high as hydrogen. Since argon has a sufficiently low thermal conductivity, it has been selected for use in one induction furnace for melting, under a controlled, gas atmosphere, in spite of its cost, which is so high (70 cents to $1.50 per cubic foot) that it must be stored and purified.. Such a gas atmosphere-as argon makes necessary the use of the, high-frequency induction method of heating. This involves, a non-metallic container for the gas; .which is most conveniently of fused quartz or glass. The next

Jan 1, 1929

By Edward B. Cook

INTRODUCTION. THE installation of the Gayley Dry-Air process appealed specially to the management of the Warwick Iron & Steel Co., for the. reason that for fifteen years records had been kept at the works of the company, showing the amount of water entering the furnace in the form of aqueous vapor, and careful observations had been made of its effect upon the working of the furnace. Some years had proved much worse in their effect than others, on account, not only of excessive moisture, but also of great variation in the moisture from day to day, and sometimes within a few hours. It had been found impossible to. make a satisfactory percentage of high-silicon foundry-iron in summer, even on high fuel; and for some years the endeavor had been made so to arrange the sales that, during July and August, only a small percentage of the iron produced would be required to carry more than 2 per cent. of silicon. Our larger furnace, running on basic iron, year after year, produced in February a tonnage 20 per cent. higher than in August, on a much lower fuel-consumption, while, at the same time, the summer months were marked by ? messes," tuyeres closed by slips, and other irregularities, constituting serious additional business losses. It will be easily understood, therefore, that the records made at the Isabella furnace after the installation of the dry blast in 1904 possessed special interest, and were closely watched by us. On the basis of our own experience, we argued that if the moisture could be kept low, and also uniform, the cost of installation would be more than justified. The subject was brought before our Board of Directors in the fall of 1905; and in the spring of 1906 it was decided to install a plant of sufficient capacity to treat 70,000 cu. ft. of air per min., an amount

Nov 1, 1908

By Robert :H. . Lesemann

I recently gave a talk at a seminar on mine development in the Eighties. I had to present CRU' s long-range market outlook for copper, lead, zinc, nickel, molybdenum and silver. In reviewing the recent history of each metal, and our projections, I tried to find some common pattern of behavior that could prove a guide in projecting future market behavior. When you sweep aside your input-output models and econometric equations, what you seem to be left with is this: "When a market goes through a prolonged period of price weakness, you can usually look forward to a period of considerable improvement. " "When a market goes through a prolonged period of price strength, you can always anticipate a prolonged period of price weakness." Stated another way, "The better things are, the worse they will get."

Jan 1, 1982

By John A. Church

Jan 1, 1880

By Benjamin F. Tillson

THE past seven years, and 1937 in particular, have witnessed the return of New Jersey iron mining to a place of importance. Following the World War period, little mining was done for several reasons. The properties were operated by small merchant furnaces whose demand was not sufficiently large to warrant large-scale methods with their attendant low operating costs. Under those conditions, the ore produced could not compete with that from the Great Lakes. However, when on Nov. 1, 1.929, the Alan Wood Steel Co., of Conshohocken, Pa., leased the Scrub Oak and Washington properties at Mine Hill and Oxford respectively, they made radical changes in the mining and milling processes which greatly reduced the cost of production and pointed the way to a renewed interest in mining in New Jersey. The following factors have been advanced as influencing the reopening of New Jersey mines:

Jan 1, 1938

By M. Albertson

The purposes of this statement are to define a problem that exists in regard to the estimation of developed petroleum reserves, to analyze the problem in an abstract manner, and to discuss it as an introduction to certain papers that follow. The problem is to devise and develop a suitable procedure to permit more accurate estimates of developed petroleum reserves. Part of the problem is to make such estimates available earlier in the life of any particular pool. The problem of securing more accurate estimates of developed petroleum reserves existed prior to curtailment of production. With curtailment, however, the problem became acute, some of the more prominent reasons being as follows: 1. The standard method of estimation depended on production-decline curves. This method is inapplicable while curtailment prevails and available methods arc insufficient. 2. The retarding influence imposed by wide open flow conditions upon overdevelopment is absent. Great losses of capital by overdevelopment can now occur before realization of the true situation occurs, or before effective steps can be taken to stop such wastage. This increases the need for early, accurate estimates. 3. Above-ground stocks have diminished and the equivalent of such supply tends more and more to be retained underground in the natural reservoirs. It becomes increasingly necessary to know accurately the amount of these stocks. To direct attention to an additional point of different nature: improved accuracy of reserve estimation can be obtained only by closer scrutiny of the factors that determine recovery. This examination and the resulting efforts to measure the effect of these factors in terms of ultimate recovery must tend to improve ultimate recovery. The statements regarding the acute nature of the problem also indicate to some extent the importance of the problem and the necessity of finding a solution. Developed reserves of the industry, and of individual opera-tors, are one of the great factors that properly should determine explora-

Jan 1, 1936

By M. Albertson

The purposes of this statement are to define a problem that exists in regard to the estimation of developed petroleum reserves, to analyze the problem in an abstract manner, and to discuss it as an introduction to certain papers that follow. The problem is to devise and develop a suitable procedure to permit more accurate estimates of developed petroleum reserves. Part of the problem is to make such estimates available earlier in the life of any particular pool. The problem of securing more accurate estimates of developed petroleum reserves existed prior to curtailment of production. With curtailment, however, the problem became acute, some of the more prominent reasons being as follows: 1. The standard method of estimation depended on production-decline curves. This method is inapplicable while curtailment prevails and available methods arc insufficient. 2. The retarding influence imposed by wide open flow conditions upon overdevelopment is absent. Great losses of capital by overdevelopment can now occur before realization of the true situation occurs, or before effective steps can be taken to stop such wastage. This increases the need for early, accurate estimates. 3. Above-ground stocks have diminished and the equivalent of such supply tends more and more to be retained underground in the natural reservoirs. It becomes increasingly necessary to know accurately the amount of these stocks. To direct attention to an additional point of different nature: improved accuracy of reserve estimation can be obtained only by closer scrutiny of the factors that determine recovery. This examination and the resulting efforts to measure the effect of these factors in terms of ultimate recovery must tend to improve ultimate recovery. The statements regarding the acute nature of the problem also indicate to some extent the importance of the problem and the necessity of finding a solution. Developed reserves of the industry, and of individual opera-tors, are one of the great factors that properly should determine explora-

Jan 1, 1936