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By John Hays Hammond

This is an era of "expansion;" and, conformably with the change in commercial conditions, the function of the mining engineer, as well as that of his confréres in many other professions, has also expanded. From the position of an engineer, limited to the determination of technical questions, the engineer of to-day has come to assume an economic importance in those branches of industry dependent upon engineering skill for their development. He is indeed an engineer of limited usefulness who does not go further professionally than to submit a purely technical report on subjects presented for his consideration. While he has the same responsibility as formerly in the solution of the technical problems involved, he is further expected to supplement his report with advice on the financial and commercial aspects of these problems. For the great majority of problems presented to the engineer ultimately involve the determination of the pecuniary relations of the propositions under consideration. The great corporation lawyer no longer earns his fee by merely submitting his opinion as to the legal issues involved in law-suits affecting the corporation; he now assumes charge of the entire legal work, including both the organization of the corporation and the maintenance of its legal status thereafter. In like manner, the engineer, whose report was, as I

Jan 1, 1909

By Edgar S. Burkhardt

In mining, the process of comminution starts at the pit and ends at the classifiers. The first machine that breaks or comminutes ore is the primary crusher. There are many types of crushers, but the one most commonly used in large tonnage plants is the gyratory so discussion is restricted to this type of machine. See Figure 1. The primary crusher is the most important piece of comminution machinery in the plant because every ton of ore processed by the concentrator must pass through it, as shown in Figure 2. Most plants can operate if a secondary crusher or a mill is shut down, but if the primary crusher stops, the whole concentrator goes down. It is, therefore, important that the machine be able to produce sufficient ore to keep the concentrator running without hesitation. The plant designer first considers the required daily capacity and an estimate of the size of the ore from the pit. To this he adds an availability factor to compensate for delays due to shovels, trucks and rou- [ ] tine maintenance at the crushing station. This factor is based on experience and can be on the order of 75% (1). With these figures, he determines the hourly capacity required of the primary crushing station to keep the concentrator supplied. See Table I.

Jan 1, 1982

By Anders Carlson

NOTABLE advances have been made in the evaluation of oil-reservoir rocks from information furnished by core analysis. Among the physical data employed, per-meability is of primary importance. It may be assumed that the permeability of a core sample, considered as a property inherent to the nature of the porous medium only, is not markedly altered by the coring opera-tion, therefore some degree of accuracy is justified in the laboratory determination of permeability constants by means of homo-geneous flow media. To provide that such relatively simple determinations be sus-ceptible to duplication and consistent inter-pretation should prove advantageous in the prediction of subsurface flow conditions involving nonhomogeneous fluids. The air permeameter seems to fill most satisfactorily the need for rapid and fairly accurate determinations. Instruments that are similar in design and operation have come into general use. However, this has not resulted in an encouraging uniformity in the results obtained. Recognizing the value of reducing measured values to a common quantitative standard, the authors have sought to determine possible reasons for undue discrepancies and means for their elimination. This paper will be specifically concerned with three factors, which appear to be of some importance in the establishment of consistent permeability values: (I) design and operation of the permeameter, (2) preparation and mounting of the sample, (3) type of flow created in the sample.

Jan 1, 1940

By J. L. Lamon, W. Crafts

P. Coheur and L. Habraken—We read this paper with great interest and are glad to congratulate the authors for their valuable work, supplying an important contribution to the mechanism of tempering on the carbides in vanadium steels. We are in a good position to appreciate this work since we have been studying, for more than a year, Cr-Mo steels of a composition similar, but less highly alloyed (namely 0.1 pct C, 3 pct Cr, 1 pct Mo). Our results are quite in concordance with the authors', however, we wish to point out that it is very interesting to use equally the electron microscope in order to observe the variations of microstructure in steels. We have studied simultaneouslv the evolution of the carbides in situ with the electron microscope, and, after extraction, again with the electron microscope, and then with X-rays. The first results which we have obtained have been communicated at the Congress of Delft (July 1949) and at the "Journbes de la Metallurgie" in Paris (October 1949). These may be summarized as follows: After tempering with varying either the tempering temperatures or the tempering times, the carbides show two evolutions. The first one is connected to the carbides existing in the steels, principally in the boundaries of the grains. For some groups of steels these carbides may coalesce and for other groups they may

Jan 1, 1951

By Frederic Lahee

THE purpose of this paper is to demonstrate the similarity of the oil-producing structures in the Mexia1 fault zone, and to show how the apparently very irregular well logs in these fields may be used for the practical interpretation of subsurface conditions. The Mexia oil field, in Limestone County, Tex. (Fig. 1) is closely associated with a fault that trends about 30° east of north and has a displacement of between 200 and 400 ft., with downthrow on the west. Minor slips accompany this major fault, some being roughly parallel to the main break while others are transverse to it. These faults belong to the so-called Mexia fault zone, a belt of fracturing that has been traced in its characteristic features southward to near Kosse, 15 miles south of Groesbeck, in southern Limestone County, and northward at least as far as the Trinity river at the eastern border of Navarro County, and possibly as far north as Hunt and Hopkins counties.2 The Balcones fault zone, from 30 to 40 miles west of the Mexia fault zone, differs from the latter in that its principal displacement is a down-throw on the east. In this respect, it is exactly the opposite of the Mexia displacement. Between these two zones of major faulting lies a great down-dropped block, or graben, which is broken by numerous minor faults.

Jan 2, 1925

By Thomas A. Read

The internal friction of single crystals of metals is affected markedly by a variety of factors, which, according to the literature, are without influence on the internal friction of polycrystalline metals at strain amplitudes less than 10-5. For example, the internal friction of a suitably oriented zinc single crystal is multiplied by a factor of ioo when the vibration amplitude is slightly increased, and the internal friction of a copper crystal is markedly increased by the application of a stress of 30 lb. per sq. in. for one minute. In this paper it will be shown that these, together with the other phenomena associated with the damping of mechanical vibrations in metal single crystals, can be satisfactorily explained, at least qualitatively, in terms of an atomic mechanism that has been proposed for quite another purpose—that of accounting for slip in metals. The extraordinary agreement between the observed behavior of the metal single crystals and the behavior that could be predicted on the basis of this atomic mechanism leads to the belief that the latter is probably essentially correct. If this is so, it follows that valuable information about the slip process in metals may be gained from measurements of internal friction on single crystals. In this paper the results of the only study to date on the damping of mechanical vibrations in single crystals of metals mill be presented. Experimental Procedure The internal friction of a material is a measure of the rate at which the energy of mechanical vibrations is converted into heat. The measure of internal friction used in the present paper is the decrcment A, which is defined as the fraction of the energy of vibration lost per half cycle. The measurements described here were made for longitudinal oscillations at a frequency of 33.5 kc. for the copper crystals, and at a frequency of 39 kc. for the zinc crystals. The method used is that of the composite piezoelectric oscillator. The single-crystal specimens are in the form of circular cylinders M in. in diameter and I 1/2 to 21/2 in. long. The crystal rods are waxed in a V-block and sawed to the proper length with a fine jeweler's saw. The ends of the specimen are ground flat, and one end is cemented with a very thin film of beeswax and rosin to the end of an x-cut quartz rod which is 1/4 in. in diameter and 3 in. long. The length of the specimen rod is determined by the condition that its natural frequency for longitudinal vibration be the same as that of the quartz rod, within 0.5 per cent. The lengths of the specimens are thus different for different orientations of the cylinder axis with respect to the crystallographic axes. When the specimen and quartz rods are thus matched in frequency the adhesive is at a node of stress, and it has been shown experimentally that under these circumstances

Jan 1, 1941

By Thomas A. Read

THE internal friction of single crystals of metals is affected markedly by a variety of factors, which, according to the literature, are without influence on the internal friction of polycrystalline metals at strain amplitudes less than 10-5. For example, the internal friction of a suitably oriented zinc single crystal is multiplied by a factor of l00 when the vibration amplitude is slightly increased, and the internal friction of a copper crystal is markedly increased by the application of a stress of 30 lb. per sq. in. for one minute. In this paper it will be shown that these, together with the other phenomena associated with the damping of mechanical vibrations in metal single crystals, can be satisfactorily explained, at least qualitatively, in terms of an atomic mechanism that has been proposed for quite another purpose-that of accounting for slip in metals. The extraordinary agreement between the observed behavior of the metal single crystals and the behavior that could be predicted on the basis of this atomic mechanism leads to the belief that the latter is probably essentially correct. If this is so, it follows that valuable information about the slip process in metals may be gained from measurements of internal friction on single crystals. In this paper the results of the only study to date on the damping of mechanical vibrations in single crystals of metals will be presented. EXPERIMENTAL PROCEDURE The internal friction of a material is a measure of the rate at which the energy of mechanical vibrations is converted into heat. The measure of internal friction used in the present paper is the decrement A, which is defined as the fraction of the energy of vibration lost per half cycle. The measurements described here were .made for longitudinal oscillations at a frequency of 33.5 kc. for the copper crystals, and at a frequency of 39 kc. for the zinc crystals. The method used is that of the composite piezoelectric oscillator. The single-crystal specimens are in the form of circular cylinders ¼ in. in diameter and 1 ½ to 2 ½ in. long. The crystal rods are waxed in a V-block and sawed to the proper length with a fine jeweler's saw. The ends of the specimen are ground flat, and one end is cemented with a very thin film of beeswax and rosin to the end of an x-cut quartz rod which is ¼ in. in diameter and 3 in. long. The length of the specimen rod is determined by the condition that its natural frequency for longitudinal vibration be the same as that of the quartz rod, within 0.5 per cent. The lengths of the specimens are thus different for different orientations of the cylinder axis with respect to the crystallographic axes. When the specimen and quartz rods are thus matched in frequency the adhesive is at a node of stress, and it has been shown experimentally that under these circumstances

Jan 1, 1941

By Thomas A. Read

The internal friction of single crystals of metals is affected markedly by a variety of factors, which, according to the literature, are without influence on the internal friction of polycrystalline metals at strain amplitudes less than 10-5. For example, the internal friction of a suitably oriented zinc single crystal is multiplied by a factor of ioo when the vibration amplitude is slightly increased, and the internal friction of a copper crystal is markedly increased by the application of a stress of 30 lb. per sq. in. for one minute. In this paper it will be shown that these, together with the other phenomena associated with the damping of mechanical vibrations in metal single crystals, can be satisfactorily explained, at least qualitatively, in terms of an atomic mechanism that has been proposed for quite another purpose—that of accounting for slip in metals. The extraordinary agreement between the observed behavior of the metal single crystals and the behavior that could be predicted on the basis of this atomic mechanism leads to the belief that the latter is probably essentially correct. If this is so, it follows that valuable information about the slip process in metals may be gained from measurements of internal friction on single crystals. In this paper the results of the only study to date on the damping of mechanical vibrations in single crystals of metals mill be presented. Experimental Procedure The internal friction of a material is a measure of the rate at which the energy of mechanical vibrations is converted into heat. The measure of internal friction used in the present paper is the decrcment A, which is defined as the fraction of the energy of vibration lost per half cycle. The measurements described here were made for longitudinal oscillations at a frequency of 33.5 kc. for the copper crystals, and at a frequency of 39 kc. for the zinc crystals. The method used is that of the composite piezoelectric oscillator. The single-crystal specimens are in the form of circular cylinders M in. in diameter and I 1/2 to 21/2 in. long. The crystal rods are waxed in a V-block and sawed to the proper length with a fine jeweler's saw. The ends of the specimen are ground flat, and one end is cemented with a very thin film of beeswax and rosin to the end of an x-cut quartz rod which is 1/4 in. in diameter and 3 in. long. The length of the specimen rod is determined by the condition that its natural frequency for longitudinal vibration be the same as that of the quartz rod, within 0.5 per cent. The lengths of the specimens are thus different for different orientations of the cylinder axis with respect to the crystallographic axes. When the specimen and quartz rods are thus matched in frequency the adhesive is at a node of stress, and it has been shown experimentally that under these circumstances

Jan 1, 1941

By J. E. Burke

RECENT investigations have elucidated many of the phenomena of the grain growth process, but have also revealed some conflicting and unexplained results. Beck and his co-workers1,2,3 have shown that grain growth continues with continued heating at one temperature until the average grain size approaches the thickness of the specimen, Plotting the logarithm of the average grain diameter, D, against the logarithm of the annealing time, t, they find the straight line relationship given by the equation: [D=Ktn [11] with possible small deviations at short annealing times. K and n are constants at constant temperature. On the other hand, Walker4 finds that, in alpha brass, the rate of growth falls off more rapidly than indicated by Eq I after long annealing, so that an equilibrium grain size is approached. Burke5 showed, using Walker's data, that time and temperature for grain growth are apparently related through an activation energy, H, according to the relationship: [t, Hr i '_ III t„ = R \T, - ~) [2]] where t1 and t2 are the annealing times necessary for the average grain size to increase from Do to D at temperatures T1 and T2 and R is the gas laws constant. In the case quoted, H had the value 60,000 cal per mol. The apparent validity of this relationship, at least up to 700°C, and the approximate value of H were later confirmed by Beck.' The results obtained by Beck, Kremer, Demer and Holzworth2 for aluminum and aluminum-magnesium alloys could not be satisfied by such a relationship, since the slope of the isothermal curves increased with increasing temperature. These data indicate and Beck, Holzworth and Hu6 later demonstrated experimentally that the only apparent factor controlling the rate of grain growth at constant temperature is the grain size. While many of the phenomena have been elucidated, a reasonably quantitative explanation of the process is lacking. There exists uncertainty even as to the primary driving force for grain growth, although there is a considerable body of indirect evidence that the interfacial energy of the grain boundary is responsible.7,8,10 Making implicit use of this assumption, several authors14,15 have pointed out that grain boundaries should migrate toward their center of curvature. Harker and Parker' have advanced this concept furthest, and show that one can expect grain boundary migration to occur only when the grain faces are curved, or when they meet at non-equilibrium angles. When the face is curved toward a grain A, for example, the atoms in the surface of grain B, on the other side of the boundary, are on the average more surrounded by the atoms of their lattice than the atoms on the surface of grain A. Because of thermal motion, the atoms at the interface will sometimes be attached to grain A and

Jan 1, 1948

By C. C. Furnas

IT is well known that particles of different sizes are not distributed evenly throughout the average charge in an iron blast furnace. Just how great the disparity in particle size in different parts of a single plane in a furnace may be is indicated by the results of some recent investigations1 conducted by the Bureau of Mines on a furnace operating on Lake ores. The wide variations found in gas velocity, gas composition, and temperature from the periphery to the center of the upper charge column were caused by the great variation in particle size of the raw materials used and were also greatly influenced by the methods of charging. This paper summarizes the results of an investigation of the influence of different methods of charging and of the treatment of raw materials upon the size distribution of the solid particles in the blast furnace. A more complete report will appear later as a Bureau of Mines technical paper.

Jan 1, 1929

By D. H. Gieskieng

Published tables of jaw crusher capacities are compiled for the most part from field performance data, interspersed with interpolations, extrapolations, various safety factors, and other modifications. Such a table attempts to balance and equalize field data from widely Werent materials, with differences of crushability, efficiency of feeding, sizing of the feed, and so on. The tests described in this paper were undertaken with the objectives of checking previously reported capacities; of studying the effects of various factors upon the capacity, including jaw plate curvature; and, if possible, of deriving a general capacity equation. Such an equation has been derived from the data obtained in these tests. It is given together with factors for its use. While more accuracy than is usually required may be obtained by careful application of the equation, it is of simple form and provides a convenient reference plane upon which the potential capacity of various crushers may be compared, and with which operating adjustments may be made on existing installations. The principal deviation in these tests from the usual approach consists of a laboratory technique which has been developed for the production of selected capacity data. Recording instruments are connected to crushers in such a manner that a continuous record is produced which discloses the inherent maximum capacity of the crusher and shows capacity decreases caused by hangups. The capacity effects of various crushing conditions are made more evident by this arrangement. The recording instruments were first applied to a standard sized 10 by 7 in. Blake-type jaw crusher in the laboratory. Suficient tests were run on this with various combinations of setting, throw, speed, feed sizing, shapes of jaw plates, and other operating features, to establish the individual effect of each on the capacity. The instruments later were applied to much larger crushers in the field, through the excellent cooperation of the managements in the Mesabi Iron Range, and data were obtained which closely corroborated the established trends. The capacity equation resulting from the test work is made up of a series of factors, each representing the contributing effects of setting, speed, width of chamber, nip angle, feed density, type of jaw plates, stroke, and the overall operating technique. Fortunately, most of these factors were revealed to be in direct proportion to the capacity for straight plate chambers. This equation is also applicable to chambers using curved plates, with slight modifications resulting from the capacity limitation of the upper portion of the crushing chamber. The equation has been derived from tests covering a very wide range of feed density and hardness. It has been found valid, providing that the feed material is either nonpacking in character, as is usual, or allowance in designing the crushing chamber shape has been made to accommodate this characteristic. Preliminary investigation has shown that the equation is also applicable to single-toggle jaw crushers. Conditions of this are that the top of the flywheel rotate towards the top of the crusher opening, and that the horizontal motion of the swing jaw relative to the stationary jaw at the discharge opening be considered as the stroke. The relatively large upper chamber jaw motion would probably result in realiza-

Jan 1, 1950

By H. R. Brannon, J. S. Osoba

The introduction of the scintillation counter into field use for gamma-ray well logging has provided a new tool with special utility for the deternzination of natural radioactivity of sediments. Previous subsurface gamma-ray measurements have indicated only the total amount of radioactivity of the sediments. With the scintillation counter, the relative amounts of the elements which emit gamma radiation can be determined. Sediments logged included 35 zones in wells located in the Teras Gulf Coast, East Texas, and West Teras. Although the data obtained from measurements made to date are not sufficient to evaluate the possibilities of spectral logging, it appears likely that spectral measurements will yield information of geologic value. INTRODUCTION Although variations in the natural radioactivity of sediments were recognized as early as 1909,1 the appli- cation of such variations to borehole logging was not made until almost 30 years later. A group of Russian workers in the early 1930's were successful in making crude measurements of natural gamma activity in an oil well borehole. The first practical gamma-ray logging system was developed by Howell and Frosch2 in 1939. Induced radioactivity, or neutron, logging appeared soon after the introduction of gamma-ray logging. After early work had demonstrated the potentialities of radioactivity logging, development of sensitive and stable logging equipment for field use followed, so that neutron and natural gamma logs are now run routinely and have proved to be extremely valuable in characterizing subsurface formations. Even though tremendous strides have been made in developing radioactivity logging, it is apparent that the ultimate in the method of logging has not been reached, for, until very recently1 in none of the commercially available logging systems has advantage been taken of the fact that gamma radiation is composed of a spectrum of rays, each ray having a distinct and characteristic energy. An individual gamma ray originates in a single element and has energy determined by the element. The inten- sity of radiation, or number of rays emitted from unit volume in unit time, is determined by the concentration of the element. If it were possible to sort out these gamma rays and assign them to their parent elements, thereby essentially analyzing for the elements, a wealth of new information descriptive of formation material and fluid content would be at hand. For example, if in natural gamma logging, the gammas due to potassium and to the thorium and uranium series were measured individually, data would thus be available on the concentrations of each of the three elements, adding materially to the information content of the log. In contrast, conventional gamma logs measure only a quantity proportional to the combined concentrations of uranium, thorium, and potassium. The naturally radioactive elements occur in sediments in concentrations dependent on source material of the sediment, and through their chemical characteristics, on conditions of deposition,' so that the individual concentrations may be diagnostic for particular formations. These concentrations, particularly if measured in situ, could lead to a powerful tool for correlation and for reflecting environmental conditions under which sedimentation took place. As a correlation tool, individual uranium, thorium, and potassium measurements

Jan 1, 1957

In uranium metallurgy, the main purpose is to obtain a product containing 80-85% U308 (yellowcake) from ores whose average grade is a mere 0.21% U30& Essentially, the task of extraction and concentration involves dissolving the ore's U308 values, followed by purification and concentration of the uranium-rich solution (using such operations as filtration, clarification, and ion-exchange), and then selectively precipitating and isolating U308. Leaching is First Step In yellowcake production mills, the first chemical change occurs by leaching the ore with either sulfuric acid-as done by Anaconda and Kerr-McGee-or with an alkaline solution of, say, sodium carbonate, as done by United Nuclear-Homestake Partners. The choice of either acid or alkaline leaching is not an arbitrary one: it depends on the chemical and physical characteristics of a particular ore. That is, on the presence of clays, organic compounds (usually of carbonaceous origin), and soluble impurities, as well as on the ore's wetness and grindability.

Jan 8, 1974

By George T. Bator

If confronted with the problem of pumping a mixture of slime-free sand, gravel and boulders up to six in. in diameter, at the rate of 175 tons per hr in one single-stage pump against a static head of 90 ft and a total head of 140 ft, of which 20 is on the suction side, an engineer might be forgiven for backing away from the job, especially if he were also told that the pump wearing parts must have a minimum hardness of 550 Brine11 for the sake of abrasion resistance. Yet precisely that feat has been accomplished in the gravel pit of John B. LaGarde, Inc., near Anniston, Ala. The pump used is of decidedly novel design and its successful operation since installation 1.5 years ago suggests that it may be of timely interest in numerous other applications in the mining industry, such as pump transportation of coal washer refuse or rock from open-pit's without unduly fine crushing.

Jan 9, 1950

By S. L. Hoyt

ABOUT three years ago eight standard steels were prepared for the cooperative investigation of methods for oxygen analysis, sponsored by the Iron and Steel Division of the American Institute of Mining and Metallurgical Engineers and by the National Bureau of Standards. A preliminary report of the results was made at the annual meeting of the A.I.M.E. in February, 1936. ? This report showed the reliability of vacuum-fusion methods and further brought out certain advantages of the fractional vacuum-fusion method. The results obtained by the authors with the latter method will be discussed here, with some com-ments on the procedure for those who are interested in determinations of gases in steel. Some additional comments are offered on the use of the polarizing microscope for identifying the inclusions in the steel to check and amplify the findings of the fractional vacuum-fusion analysis. For details of the fractional method, see the paper by L. Reeve1.

Jan 1, 1937

By L. W. Bahney

Many methods for the determination of gold or silver, or both, in cyanide solutions have been published, which with care in manipulation, and modification in some cases, will give results that are satisfactory. It is possible to classify or group these methods as follows: 1. Evaporating the solution in a porcelain or agate-ware dish containing litharge,l or in a "boat" made of lead foil. 2. Forming a lead sponge containing the precious metals by means of zinc shavings,2 zinc dust,3 or a piece of aluminum.4 3. Decomposing the cyanide solution with an acid and precipitating the precious metals by the use of one or a combination of some of the following: Copper sulphate,5 sodium sulphite,6 hydrogen sulphide,' cement copper.ll 4. Precipitating the silver by zinc dust held in a Gooch crucible and determination with a standard solution of sulphocyanate.9 5. Electrolysis.l0 . 6. Colorimetry.ll

Jan 1, 1915

By P. R. Bradley

This paper gives a brief history of the mining and milling operations in the Juneau gold belt, and a general description of the geology of the district, followed by a suggestive discussion of the general problem of sampling gold ores and a detailed description of the mining methods used in the Alaska Juneau mine. The paper indicates that variations in assaying ore similar to that from the gold belt are unavoidable on account of the erratic distribution of the gold. A caving system that accepts dilution was adopted for the Alaska Juneau mine; the ore is sorted and the final mill feed has nearly twice the assay value of the ore trammed. THE property of the Alaska Juneau Gold Mining Co., covering the Juneau gold belt for over a mile in length, consists of 136 claims and 24 mill sites; these are near Juneau, Alaska, in what is known as the Harris mining district.

Jan 3, 1924

By H. N. Thomson

GENERAL. THE Tooele plant of the International Smelting & Refining Co. is situated at the mouth of Pine canyon, Tooele county, Utah. It is connected with the main line of the San Pedro, Los Angeles & Salt Lake railroad by the Tooele Valley railway, and is about 7 miles from Tooele Junction. Fig. 1 is a general view of the plant. FIG. 1.-TOOELE PLANT OF THE INTERNATIONAL SMELTING & REFINING Co. The copper plant has been in operation since July, 1910, and the first blast furnace at the lead plant was blown in on Feb. 29, 1912. The location of the plant was selected on sloping ground with the idea of using gravity to the fullest extent and thus keeping labor at a minimum. Practically the entire plant is constructed of steel, reinforced concrete, and brick. Bingham ores, both lead and copper, are received over the Utah Consolidated Aerial Tramway. The tram buckets, each containing

Jan 7, 1913

By Thomas M. Drown

ZING is, as is well known, very brittle at a temperature of about 210' C. (410' F.), and may then be readily pulverized in a mortar. By sifting it may be obtained of uniform grain. I have been accustomed to prepare products passing through 40, 60, and 80-mesh sieves, and also by bolting through a fine handkerchief. The principal analytical uses to which I have hitherto applied this material are to the reduction of iron directly from the ore by heating it with the pulverized zinc, and the reduction of ferric to ferrous compounds in solution. In the first case the pulverized ore, 0.5 gram or less, is intimately mixed with about ten times its weight of the pulverized zinc (the finer the zinc the better), in a porcelain crucible, and this mixture is covered with about the same amount of zinc. The crncible is then heated at the top of the flame of a Bunsen bhrner, at a dull red heat, for about ten minutes. The crucible should not be covered. When cool, the crucible, with its contents, is placed in a flask treated with hot dilute sulphuric acid, and brought quickly to a boil. The zinc and reduced iron are dissolved in a few minutes and the flask is then tightly corked and allowed to cool. When cool, the iron is directly titrated by potassium permanganate.

Jan 1, 1879

By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985