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By Donald R. Lessard

I. INTRODUCTION There is no question that the choice of an appropriate discount rate is a critical element in virtually all business decisions in extractive industries. The standard textbook approach relies on a single overall cost of capital for an entire firm, itself a weighted average of the firm's cost of debt and equity. But a single rate is appropriate only if the commercial risks and financing structures are similar for all projects under consideration. In extractive industries, appropriate discount rates are likely to vary greatly from project to project. Risks of projects differ markedly by mineral, by country in which the project is located, by stage in production, and by position in the project's life. Further, for a variety of institutional reasons, financing structures vary greatly in relation to these same variables and thus the discount rate appropriate to the entire investment and, in particular, to the sponsor's equity investment will vary even more markedly. Failure to select discount rates which reflect these differences can result in extremely distorted decisions. Our interest in this subject results from our ongoing research on alternative ownership and financing structures for large scale extractive ventures in less developed countries where risks to the various participants--the sponsors, the financiers, and the host government--vary dramatically with the different options. Given the magnitude of these differences, a single discount rate for all options is clearly inappropriate. However, there appear to be few guidelines for practicing managers to follow in setting appropriate rates. In this paper, we take a first step in this direction.

Jan 1, 1977

By George H. Willis

In the second half of the 19th century, bimetallism progressively was replaced by gold standard. After World War I and the 1931-33 depression, gold was mainly reserved for official international transactions and internal use was restricted. Changes since 1971 have shrunk official international use of gold. International payments deficits and surpluses are now financed by Private and official credit, rarely by gold. This historical review covers evolution of: (1) internal and external private use, (2) internal official use, (3) external official use, (4) its role in the International Monetary Fund, and (5) use as unit of account. For this paper I have tried to take a longer perspective than is usually possible, and to look, even if very briefly, at the changing relationship of gold to the monetary system over the last 200 years or so. There are, I believe, some long-term trends, continuing down to the present day. These trends have seen gold replaced by some form of paper assets in one monetary function after another. These past trends may help us to understand where gold stands now, and possibly will throw some light on the future. Because it seems to me that gold in the past has performed various functions related closely or marginally to money, I have divided this rapid historical review into several sections: (1) the internal and external private use of gold, (2) the internal official use of gold, (3) the external official use of gold, (4) gold and the International Monetary Fund, and (5)gold as a unit of account.

Jan 1, 1980

By Edward V. D’Invilliers

In connection with some recent professional work in the coalfields of Western Pennsylvania, with special reference to results of coking operations, I was asked to compile a statement giving the estimated cost of mining coal and manufacturing coke at two hypothetical plants of 500 ovens each, giving the relative yield of coal in coke at each plant; and, upon the average number of working days in each of the past five years, from 1899 to 1903, together with average selling price of coke at the ovens, to prepare an estimate of the relative commercial returns in each district. What seemed at first sight to be a comparatively simple proposition, involving only the ordinary elements of mining and coking costs, became complicated by the lack of standard published records of mining costs and sales, which would be applicable to the subject at issue. Upon searching through the usual channels of Government publicatious and the files of our technical societies and mining periodicals, I was surprised to note the absence of fundamental factors that would approximately meet the case in point. The very elaborate and interesting statistics annually published by the National Government' do not supply the required data for the following reasons:—1. Being reported by arbitrary districts, the average values are too general to be applied to special fields. 2. The value of coal charged to the ovens is apparently based upon the regional average value of the coal if sold in the market, and not upon the cost of production. 3. Some plants only use the slack (a by-

Jan 1, 1905

By W. M. Weigel

WHILE electric lamps both of the cap and hand type are being introduced into many mines requiring the use of safety lamps, the oil-burning safety lamp is still used in the great majority of cases, and even where the former are used the latter must continue to be employed when testing for gas. It is not the intention to discuss here the relative merits of the two types, but simply to give a comparison of the illuminating effect or candlepower of several kinds of ordinary safety lamps used for general work and for testing. Few data have been published in recent years on this subject and because of this it is hoped that the following information may be of some interest and value. The lamps tested were in all cases. of standard size and in good condition, all practically new, and were selected from a collection of about 100 with a view to obtaining results on as many different common types as possible. With the exception of the gasoline-burning lamps, five different oils were used in each lamp to determine whether -particular oils were suited to particular lamps and whether there was any great difference in the illuminating power of the different oils, or whether some oils would maintain their illuminating power better than others throughout a working period of 8 hr. No attempt was made to determine the amount or cost of oil burned by each lamp, but the condition of the lamp, wick, glass, and gauzes was noted after each test.

Jan 8, 1916

By James Douglas

American metallurgical inventions have not always been absolute metallurgical improvements, if accurate work be the standard of comparison; but when we review the new methods and machinery which have been generally accepted, we find that some have become essential to the metallurgist the world over, while all are so admirably adapted to the peculiar requirements of our local conditions that they have entirely supplanted foreign processes and appliances. The necessity of diminishing to the utmost the employment of labor (owing to its great cost), and the inexorable requirements of our modern joint-stock corporate system, which demands that large quantities be worked up in order to secure large returns, regardless betimes of waste, have been the impelling motives to invention, and indicate the special directions in which originality has been exercised. As might be anticipated, the West has been the most fertile field of inventions by miners and metallurgists, by reason of its great and varied mineral wealth, locked up in ores sometimes lean and often of intricate composition, which must be profitably handled, at a great distance from fuel and from building-materials, by workmen who are paid wages very much higher than those received by their fellow-workmen of like craft in Europe, and in some localities twice as high as those paid for like services even in the eastern States. Moreover, paradoxical as it may seem, the technical inexperience of many of those engaged in mining and metallurgy has helped rather than hindered the progress of invention; fop while there may have been ignorance, there has been radical freedom from

Jan 1, 1894

By W. H. Bassett

IN the commercial annealing of cartridge brass there are four points regarding which definite data are essential. They have to do with the correct interpretation of grain count in its relation to annealing temperature and, incidentally, to Brinell hardness. These points are: 1. The comparison of the grain sizes of two cartridge-brass mixtures: 69 copper, 31 zinc, 0.376-in. (9.5-min.) gage; and 68 copper, 32 zinc, 0.130-in. (3.3-mm.) gage. 2. The comparison of the grain sizes of annealed metal that had previously been reduced by rolling varying amounts; for instance, 20.0, 36.6, 50.9, and 59.1 per cent. 3. The determination of standards for grain sizes on annealed brass of the composition 68 per cent. copper, 32 per cent. zinc and 69 copper, 31 zinc. 4. The comparison of grain size with Brinell hardness on identical samples of annealed metal. In their comprehensive and thorough investigation of the recrystallization of cold-worked alpha brass on annealing,1 Mathewson and Phillips have discussed the relations between temperature of anneal, degree of deformation, and structural alteration in alpha brass. They have also shown certain comparisons between the ordinary physical properties and the grain size of annealed brass. The purpose of the present investigation is mainly concerned with the grain size of cartridge brass, its relation to Brinell hardness, and the publication of sufficient data to enable those engaged in the inspection of such material to have a correct foundation upon which to work.

Jan 1, 1919

By John J. Cioston

THE steadily rising flood of gold production from all parts of the world has created an avalanche of rumors regarding the stability of the present price of this metal. Markets have been unsettled from Johannesburg to London from New York and Toronto to Melbourne, despite repeated denials from, American and British authorities of any immediate intention to alter the price. Various economists and financial writers have blossomed forth with predictions that the price would be set at the old level of $20.67 per oz.; some have even been so brash as to state That a price of $15 would be necessary to bring production within control. These effusions, based entirely upon monetary theories and with no regard to production costs, serve to confuse rather than clarify the situation.

Jan 1, 1937

By W. J., Kroll

MOST people believe that rare metals are always, scarce in nature, expensive to make, and therefore useless despite some miraculous properties which might make them a cure-all. There are' some metals, which are quite frequent in nature, such as zirconium, which are called rare only because our present methods for making them are elaborate, thus forcing the manufacturer to sell them at a high price. There are also truly rare metals, such as gallium, which do not occur frequently in ores, but are easily reducible from their oxides. In these cases the price of the concentration operation is the decisive factor. The distribution of the elements in the earth's crust is no indication as to the availability of a metal; the concentration operation is the critical factor. Concentration is frequently obtained in the course of metallurgical operations for the extraction of other metals, and the rare metal may be enriched in by-products, flue dusts, mother liquors or precipitates from electrolyte purification as are indium, thallium, selenium, and tellurium. A periodic table of the rare elements may serve as a basis for discussion of their properties and to establish a program. (Table 1.)

Jan 1, 1946

By J. S. FINLAY

OPERATING a "muck stick" never appealed to me. It always seemed a terrible waste of energy to "put rocks in the box" by hand-particularly when my own personal energy was involved. But during the past forty years, there have been periods-more or less extended when I was compelled, against my finer instincts, to muck or quit eating. For about the same length of time, I have devised schemes to make mucking faster and more painless. There was always something mechanically wrong with these designs-too many;" parts to wear out and need replacement, and excessive cost incidental to a complicated mechanism. The idea of a shovel unit comprised of a single, rigid assembly which would roll from a digging to dumping position solved the problem of simplicity and durability. Ingersoll-Rand's utility engine provided a splendid power plant, small enough and powerful enough for the job. In the machine finally developed, known as the Eimco-Finlay loader, roller chains are preferred to gears for power trans-

Jan 1, 1935

By Grimes, J. A.

EXTENSIVE discovery 'and rapid exploitation of orebodies within the past half century have attracted many able geologists to the mining industry and furnished them a wealth of data from which to develop theories concerning ore genesis. By tosting and elimillating theories which are not sufficiently sup- ported by fact, or which are based on inaccurate observation of field data, the trend of geological opinion has . moved strongly in certain directions until, at the present time, large numbers of geologists subscribe to a broad concept of .ore genesis that I would summarize as below:

Jan 1, 1928

By John H. Harden

In the valuable paper of Mr. Dunbar D. Scott and its varied discussion, on the evolution of mine-surveying instruments, the tripod-head has not received the attention it merits. During the last 50 years this very necessary adjunct to the surveyor's instrument has been much improved. The legs are of better construction; and the devices for laterally moving the instrument over the station-point and for quick leveling, without the use of the screws, have given to the instrument fitted with the modern tripod-head the same facilities possessed by the oldfashioned ball-and-socket, with more perfect accuracy, not attainable in the latter, while saving from 30 to 50 per cent. of the time required for setting the instrument over a station. For the purpose of extending the discussion to this import-

Jan 1, 1902

By C. J. Bauer

WHEN the pipe lines from the Middle East to the Mediterranean are completed, the Middle East supplies will relieve the strain on Western Hemisphere petroleum resources, part of which are now shipped for Eastern Hemisphere use. A sketch of the world petroleum situation as it appears today and in the immediate future will help in understanding the future place of Middle East oil supplies. Anticipated 1951 world demand is slightly under four billion barrels. To meet this requirement, crude output and refinery runs throughout the world (including Russia) must be increased about two million barrels per day above the average of 1947. This increment, together with pipe lines, tankers, and other facilities, will require in excess of ten billion dollars of new capital in the next four years. We are, therefore, looking forward to the greatest expansion program in the history of the industry.

Jan 1, 1948

By WILLIAM E. NEWNAM

THE molding and loading of pig lead has, in the past, been accomplished mainly by the strong arm method and, as the pigs are usually loaded directly into the cars, it has been a hot and laborious task. Of late years it has been difficult to obtain men willing to perform such labor and the need has been felt for loading and molding machinery which would eliminate all manual handling of the hot pigs and which would be sufficiently compact to permit of installation in existing plants with little or no

Jan 1, 1924

By JOHN S. HEARDING

ON the Minnesota Ranges, 600 million tons of material have been moved in the past three years to produce 172 million tons of direct-shipping iron ore. Increasing wage rates and cost of equipment and supplies, coupled with the larger amount of waste material to be moved in comparison with the quantity of ore make it imperative that tile industry adopt all practices and methods which will enable it to move earth at progressively lower costs. Drilling. Prior to and during the war practically all blastholes drilled were 6-in. in diameter and put down by drills using strings of tools weighing from 2000 to 3000 lb. Present trends indicate that heavier drilling equipment making 9-in. holes wit11 3000 to 6000 lb tools will be more economical. Holes up to 12 in. diameter will be made with this equipment. Forging and hardening practices for bits to increase footage is receiving attention. One manufacturer expects to market 9-in. bits having sintered carbide inserts in the reaming and cutting edges. Oxygen and oil to burn holes in the rock are being tested for making blastholes at a considerably greater speed than can be obtained with a blasthole drill on the same size hole. To dale, however, the cost has been prohibitive.

Jan 1, 1949

By T. T. Read

FOR the second time the Mineral Industry Education Division opened the sessions at the Annual Meeting by gathering at the Engineering Woman's Club, Sunday at 3 p. in., and, in spite of the informality of the hour, with a good attendance of representative men in the educational field. The chairman of the Division, Thomas T. Read, after briefly reviewing some of the more significant events of the past year, introduced H. P. Hammond, professor of civil engineering, Brooklyn Polytechnic Institute, a leading figure in the project of the Engineers' Council for Professional Development for accrediting engineering schools. Prof. Hammond made it clear that the project is not to rate engineering schools but to accredit them; not to arrange them in order of excellence, but to segregate them into two groups, those that are entitled to recognition as genuine engineering schools, and those that are not. About thirty schools in the whole country will presumably fall into the latter class; they are typified by an unnamed institution where the teacher of mathematics bears the title of Professor of Civil Engineering and the man who teaches chemistry that of Professor of Chemical Engineering, and having no engineering instruction except some elementary surveying, but still claiming in its catalogue to be an engineering college. While everyone would like to avoid the necessity of accrediting engineering colleges, it cannot be avoided, since the University of the State of New York, and several other agencies, are already doing it. If it cannot be avoided it is best that it should be done by a qualified agency set up by the national engineering societies, so that the results may command respect and general acceptance. It is for this reason, and this alone, that the accrediting committee of the E. C. P. D. has been set up. It is now ready to begin its task, and during-the coming year it will accredit the schools in two of the seven geographical districts into which the country has been divided, beginning with New England and the Mid-Atlantic States.

Jan 1, 1935

By J. Gurland

A method of measuring the degree of contact between grains of 1 phase in multiphase alloys is derived. It is shown that the number and the areas of contacts between grains can be determined by metallographic analysis. Relations between the area of contact, the dihedral angle, and the mean free path of spherical grains are developed. It is often desirable to interpret the mechanical behavior of alloys in terms of structural features observed under the microscope. A quantitative description of microstructures of multi-phase alloys requires consideration of geometrical and topological factors such as the amount, size, and shape of grains and the continuity of the constituent phases. The number and dimensions of grains may be metallographically determined by applying the methods described by Smith and Guttman1 and by Fullman2 in their papers on the measurement of particle size and internal boundaries in opaque bodies. The present work intends to show that the same methods can be used to evaluate some of the parameters of phase continuity; namely, contiguity, number of contacts, and areas of contact of grains of 1 phase. Application of these concepts may be found in such problems as the calculation of electrical conductivity of 2-phase alloys, or the evaluation of the length of fracture path through grains of a brittle phase more or less dispersed in a matrix. I. DEFINITION The following definitions and derivations are based on 2-phase alloys, of which the units of the microstructure are grains. Contiguity is defined as the average fraction of surface area shared by 1 grain of a phase with all neighboring grains of the same phase. In a 2-phase alloy of constituents A and B, the contiguity of phase B is given by: where Cb is the contiguity of phase B aBß is the average area of contact between a grain of phase B and adjacent grains of phase B, aAB is the average area of contact between a grain of phase B and adjacent grains of phase A. The contiguity is a measure of the average degree of contact between grains of phase B in the 2-phase mixture. The ratio varies from 0 to 1 as the distribution of phase B changes from a completely dispersed to a fully agglomerated structure. Smith and Guttman1 have shown that the relative areas of 2 kinds of interfaces in a volume are directly proportional to the number of interfaces of each type intersected by a random line. The lines can be drawn on metallographically prepared surfaces as long as these are random sections through the sample. The contiguity ratio of phase B then becomes: Cb = 2NBB/NAB + 2N BB [2] where: NBB is the number of interfaces between grains of phase B intersected per unit length of random line. Nab is the number of interfaces between grains of phase B and grains of phase A intersected per unit length of random line. The factor 2 arises in Eq. [2] because each interface B-B is associated with 2 grains of B-phase, whereas the interface A-B involves only 1 grain of B-phase. The calculations of contiguity do not require any assumption as to volume fraction, particle size, or particle shape. Fullman2 gives an expression for the determination of the mean free path between particles. The mean free path PB between grains of phase A, i.e., through grains or agglomerates of phase B, may be found from the relationship: PB =2fB/NAB [3] where fB is the volume fraction of phase B. The calculation of the mean free path is independent of grain shape and grain size distribution. The calculation of the number of contacts and of contact area requires assumptions of grain shape, grain size, and contact shape. In the case of uni-

Jan 1, 1959

By W. E. Brigham, P. W. Reed, J. N. Dew

By David H. Browne

(Pittsburg Meeting, March, 1910.) NICKEL has always been a fruitful mother of problems. Previous to the year 1906 nickel was regarded as an element replacing iron in copper-mattes, and it was believed that the same laws which governed the elimination of iron could be applied-to nickel. This conception has lately undergone a complete change, and nickel in all its stages is now regarded as an element replacing copper; in other words, copper-nickel is considered now as two elements, but as one metal. When we commenced our investigations on Monel metal we made a great many experiments on the conversion of mattes, both high copper and high nickel. We studied closely the composition of the mattes and the changes produced by the blow. We found in all cases certain agreements which we believe are due to some law. Briefly stated, our conclusions are as follows 1. Nickel is not an element replacing iron in matte. 2. Nickel-copper alloys act in the matte-blow like one metal. 3. Nickel-copper alloys follow, during the matte-blow, exactly the same laws as govern. the behavior of copper alone. This brings up the question : What are the laws governing the production of metallic copper, and what are the relations copper to sulphur and iron during the Bessemer blow ?

Apr 1, 1910

By R. H. Sweetser

AT the Buffalo meeting in October, 1898 (Trans., xxviii., 865), our Secretary, Dr. Raymond, in speaking of the obstacles he had encountered in securing contributions to the Transactions from members in practice, said: "It is the disinclination of many members to communicate incomplete or partial or preliminary results. They are going to write, ' some day,' a thorough and monumental paper; and meanwhile they prefer to communicate nothing. . . . It is the difficulty to which I have just referred that I have encountered in a wide correspondence with members, undertaken for the purpose of securing contributions of fact and opinion concerning the special subject of this discussion. . . . Almost none of them seem to recognize the value of preliminary, incomplete and indecisive reports of practice, as laying the foundation for a thorough inquiry." This remark was made in immediate reference to a discussion concerning blast-furnace tuyeres ; but, notwithstanding this appeal from the Secretary, little has been recorded regarding the distribution, the penetration, and the pressure of the blast at the tuyeres and inside the iron blast-furnace. I am therefore encouraged to contribute the following incomplete and crude observations of the blast-pressure inside the hearth. At the suggestion of J. H. Frantz, the General Manager of the Columbus Iron & Steel Co., a test was made at the East furnace of the company to determine whether there was any difference in blast-pressure at the different tuyeres. The apparatus used for this test was not sensitive enough to give accurate results. It consisted of a small pressure-gauge mounted on a 3/8-in. gas-pipe. A hollow plug, fitting into the peep-hole of the tuyere-cap, prevented the blast from blowing-out during the test. The test-pipe was held in place by means of the handle on the outer end.

Mar 1, 1909

By Rollin A. Pallanch

THE Midvale mill of the United States Smelting Refining and Mining Company is situated on a flat site whose elevation is 50 ft above that of the Jordan River. Tailings are impounded in the area between the river and the flat upon which the mill and railroad switchyard are located. The water supply is pumped from the Galena canal which leads from the river at a point some ten miles to the south. The mill has a present capacity of approximately 1700 tons daily. It started out originally in 1926 as a 750 ton three-unit plant. The tonnage was gradually increased to 1200 tons by 1934, and in late 1935 a fourth unit was added. The accompanying flowsheet shows the principal equipment and how it is utilized. The ore is principally sulphide with varying degrees of oxidation, with individual lots ranging widely in both precious and base metal content. In each of the four individual units of the mill there will often be mixtures of as

Jan 1, 1948