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By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By L. W. Bahney

Frequently in using a thermo-electric pyrorneter for measuring the temperature of a furnace, a hole is drilled at the back or side of the furnace, through which is introduced the tube containing the thermo-couple. At times the couple is left almost where it drops, for the reason that it soon becomes too hot to be handled easily, and the space at the back or side of the furnace may be so small and uncomfortably hot that an easy and accurate adjustment is nearly impossible. In order to overcome this clumsy and unscientific method of using the thermo-electric pyrorneter, I designed an adjustable stand, to hold the clay or quartz tube inclosing the platinum and platinum-rhodium leads that constitute the couple of the Le Chate-lier thermo-electric pyrometer. This stand also allows an easy and rapid adjustment of position to varying heights and angles, as may be desired for special reading, This stand is illustrated in Fig. 1. The couple in the tube might be of better service if the tube were held a little higher above the charge in a roasting-dish, changing the height and angle if desired. The stand, made of 1.5-in. water-pipe and mounted on casters, is heavy enough so it cannot be tipped over easily. It is adjusted to any position, and has a universal clamp which holds the clay or quartz protecting-tube. To avoid disturbing the wires of the couple at the cold junction each time the tube is moved, the cooling-bottle sets in a wire basket so placed that it moves forward or back with the couple. To overcome the necessity of leveling and adjusting a galvanometer at each furnace, a switch-board is used to connect

Jan 1, 1910

By Oscar Lachmund

DURING the driving of the main haulage level at the Copper Mountain mines of the Canada Copper Corpn., Ltd., near Princeton, B. C., some very rapid driving was clone, though no claim for a world's record is made. Conditions, however, were unfavorable for economical operations. The cost of power was high, for the fuel was of poor grade; besides, during the time the work was in progress, very little other power was needed so that most of the power cost was charged against the footage. The FIG. 1.-DRIFT ROUND USED IN MAIN HAULAGE LEVEL, COPPER MOUNTAIN, B. C. transmission line consisted of No. 4 galvanized iron wire with the result that the line loss was considerable. The voltage transmitted was about 30,000. The plant was operated under a lease, which was due to expire about the same time this work was supposed to be completed; an extension was refused, therefore speed was most important. The plans called for a straight adit 2900 ft. (884 m.) in length. At a point 2800 ft. (853 m.) from the portal, two raises were to be put up to the next nearest workings, a difference in elevation of about 800 ft. (243 m.). One of these was to be a two-compartment hoistway and the other a zigzag ore pass, or muck run. A location for these raises had been determined by a number of diamond-drill holes, but the material to be penetrated by the alit was not known. It seemed imperative to get the tunnel work completed as rapidly as possible, in

Jan 3, 1919

By Oscar Lachmund

During the driving of the main haulage level at the Copper Mountain mines of the Canada Copper Corpn., Ltd., near Princeton, B. C., some very rapid driving was done, though no claim for a world's record is made. Conditions, however, were unfavorable for economical operations. The cost of power was high, for the fuel was of poor grade; besides, during the time the work was in progress, very little other power was needed so that most of the power cost was charged against the footage. The transmission line consisted of No. 4 galvanized iron wire with the result that the line lass was considerable. The voltage transmitted was about 30,000. The plant was operated under a lease, which was due to expire about the same time this work was supposed to be completed; an extension was refused, therefore speed was most important. The plans called for a straight adit 2900 ft. (884 m.) in length. At a point 2800 ft. (853 m.) from the portal, two raises were to be put up to the next nearest workings, a difference in elevation of about 800 ft. (243 m.). One of these was to be a two-compartment hoistway and the other a zigzag ore pass, or muck run. A location for these raises had been determined by a number of diamond-drill holes, but the material to be penetrated by the adit was not known. It seemed imperative to get the tunnel work completed as rapidly as possible, in

Jan 1, 1920

By J. B. Newkirk

IN 1939 Bitter and Kaufmann1 suggested that iron, precipitating from a copper-rich, Cu-Fe solid solution, appears initially as coherent particles of r-Fe which transform to the body-centered-cubic form of iron when the alloy is cold worked. Since then there has been considerable discussion, supported only by indirect evidence, regarding the validity of the concept. For example, Reekie, Hutchison, and Hether-ington2 interpreted the changes in electrical resistance accompanying the aging of Cu-Fe specimens in terms of a coherent 7-Fe precipitate which transformed to the incoherent a-phase during long aging or cold working. Greninger- ound that Cu-Fe alloys which had been water quenched from 1050" and then held at 650°C for 3 hr changed from weakly to strongly ferromagnetic as the aged wire was subsequently cold worked. He also found diffraction lines corresponding to body-centered-cubic iron in Debye-Scherrer patterns given by aged and worked specimens but lines corresponding to only one face-centered-cubic phase in specimens which had been aged but not worked. Knoppwost,' and later Cech and Turnbull,5 found that aged Cu-Fe specimens showed a slight increase in ferromagnet-ism after they had be? cooled in liquid nitrogen. Very recently Denney6 followed the kinetics of the precipitation reaction as indicated by the saturation magnetization, hardness, and diffuse X-ray effects. The experimental results reported by all of the authors mentioned above are readily explained in terms of the Bitter and Kaufmann concept. However, most of the evidence is indirect when used to define the structural changes involved. It was the aim of the present investigation to determine the mechanism of precipitation of iron from a Cu-Fe solid solution in the light of available published information and with additional new and more direct experimental data. Experimental Method At 1060°C copper will contain up to 3 atomic pct Fe in equilibrium solid solution.7 The solvus slopes rapidly toward lower iron concentration, so that at 600°C only about 0.5 pct Fe remains in solution at equilibrium. Below the eutectoid temperature (850°C), the iron-rich phase in equilibrium with the copper-rich solid solution consists of body-centered-cubic a-Fe. Above 850 °C the equilibrium iron-rich phase is face-centered-cubic r-Fe. The alloy to be studied was made by melting electrolytic iron and OFHC copper by induction under vacuum in an Alundum-lined crucible. The metal was held molten for about 5 min, after which time the power was turned off and the crucible was tipped about 70" to promote directional solidification. The resulting ingot, containing 2.5 wt pct Fe by analysis, was clean, large grained, and free of gross segregation. Slices % in. thick were cut from the ingot, rolled to 1/8 in. in thickness, homogenized in hydrogen at 1060°C for 24 hr and, finally, quenched in cold water. Specimens for all subsequent tests were made from these slices. Squares measuring about 1 cm on a side were cut from the slices to make specimens for studying hardness and microstructure. Wires (0.020 in.) for the Debye-Scherrer survey were drawn from 1/8 in. sq rods which had been cut from the homogenized slices. Large crystals for observing diffuse X-ray diffraction effects were prepared by mechanically

Jan 1, 1958

By H. F. Easter

(San Francisco Meeting, September, 1915) THE lead department of the El Paso Smelting Works at El Paso, Tex., is operated strictly oil a custom basis. The ores treated are drawn from the surrounding territory, comprising New Mexico, Arizona, western Texas, and northern Mexico. Ores received from the last-named section originally amounted to a very large tonnage, but of recent years have dwindled into comparative insignificance so far as this plant is concerned. This has been clue partly to the establishment of a lead-smelting plant at Chihuahua, which is much closer than El Paso to most of the important mines, and partly to the recent revolutionary troubles in Mexico. There are no mines of either lead or copper in the immediate vicinity of El Paso. In general, it may be said that the lead-ore supply of recent years has been uncertain and precarious, with a general tendency toward an excess of silica and a shortage of iron. This latter requirement has been met in large part by the use in El Paso lead furnaces of considerable amounts of roasted heady copper matte from the Chihuahua smeltery and of converter slag from the El Paso converters. These two materials, coupled with complex lead-copper ores from Bisbee, Ariz., have introduced into the lead-smelting operations a most unusual amount of copper, which has had an important bearing upon the smelting practice of the plant. This matter will be discussed later. The ore, loaded in either box cars or gondolas, enters the storage yard on four tracks elevated about 8 ft. above the ground. As all unloading is clone by hand, unloading platforms at the height of the car floor parallel the tracks on each side to afford a runway for wheelbarrows. At frequent intervals these lengthwise platforms are joined together by others running crosswise to facilitate the distribution of the ores evenly over the beds, which are located below and between the tracks. At present much of the bedding space formerly used for lead ores is given over to the copper department, but 20 bins of various sizes are retained for the use of the lead furnaces and the Huntington & Heberlein roasting plant. The largest of these holds about 1,000 tons, while the smallest holds not over

Jan 8, 1915

Illinois is rightly known as containing the coal deposit of which the first record in the United States was made. Joliet and Marquette saw "charbon de terre" along the Illinois River in 1673;1 LaSalle saw "mines de charbon" along the same stream in 1679; and Hennepin reported having "found in Several Places Some Pit-Coal" in 1682.2 In 1687 Jontel, in writing of the Illinois River country said, "along the river are coal pits, the coal whereof has been try'd and found very good."3 J. Carver reported the northern parts of the Mississippi River valley, "containing lead, copper, iron, coals, etc." in 17664 evidently referring to the Illinois country. Croghan, in the same year, saw coal along the Wabash River, near the mouth of the Vermilion in Indiana, but not far from Danville. Capt. Philip Pittman in his journey up the Mississippi in 1770 reported that "great pieces of coal are constantly found on the sand-banks, from whence it may be concluded, that there are coal-mines on the upper parts of the Mississipppi."5 This coal could only have come from the Illinois or Big Muddy Rivers. Morse, in 1798, refers to great quantities of coal on the upper branches of "the Father of Waters," and "on the Illinois River is a coal mine, which extends for half a mile along the middle of its banks."6 While, undoubtedly, some coal was used locally in various places, no records have been left of it and the first definite one is that in 1809 William Boon shipped some coal from the Big Muddy River, in Jackson County, to New Orleans, which was the first coal exported from Illinois.1 There has been considerable discussion as to this first shipment, whether it was made in 1809, 1810 or 1812. The records of arrivals of: boats in New Orleans in those early years is specific as to date, name of craft and name of captain, but no mention is made of cargo carried. William Boon arrived

Jan 1, 1942

By W. F. Burns

(Butte Meeting, August, 1913.) ATTEMPTS were made in 1908, at the Great Falls Works, to produce ingots direct from the Butte precipitate by smelting the material in a reverberatory refining furnace. The ingots produced in this manner averaged 99.4 per cent. of copper and 0.40 per cent. of arsenic and antimony. The copper content being considered too low, it. was decided to cast the copper into anodes and to treat the anodes in the electrolytic plant. No. 1 Furnace, in which the precipitate was treated, was a regular cathode refining furnace previously employed in making wire bar, cake, and ingot from electrolytic cathodes. The hearth of the furnace was 24 by 12 ft., having a capacity of 100,000 lb. of cathodes. The furnace was coal fired, and the copper was dipped by means of trolley ladles.

Jan 7, 1913

By Charles P. Williams

The determinations of the specific gravities of a number of samples of lead produced in Missouri, which form the subject of this note, were undertaken with the view of ascertaining if any approximation to the purity of such leads could be reached in this manner. The results would seem to indicate that, whatever value the method may have in the case of the crude and more impure

AT the fall meeting of the Iron and Steel Division, Oct. 4, 1934, in New York, a symposium was held on Slag Control in the Making of Iron and Steel. The chairman was J. H. Nead and the vice chairman, G. B. Waterhouse. The latter presided at both morning and afternoon sessions. The papers and discussions were presented in the order in which they appear on the following pages. To meet space requirements, much of this material has been considerably condensed. CONTENTS [ ]

Jan 1, 1935

By J. Brian Eby, T. I. Harkins

THIS paper outlines the geophysical investigation of the area covering the Darrow salt dome, Louisiana. Surveys with the refraction seismograph and torsion balance failed to disclose the dome, but reflection dip shooting was successful and was confirmed by later drilling.

Jan 1, 1942

By Theo B. Comstock

Since 1892 the writer has published several articles in the Engineering and Mining Journal concerning the relations of the

Jan 1, 1901

By S. S. Clarke

THE opening of sheet-ground mines in which the ore beds are only from 7 to 9 ft. thick led the Commerce Mining and Royalty Co. to con-sider mechanical loading, in order to avoid the high cost of hand shovel-ing in such mines. Scraper loaders were chosen because the capital investment would be comparatively low; because they are small enough to be used in low working faces, and because they can be mounted on a mobile carrier.

Jan 1, 1939

By J. F. Wolff

EXPLORATION of Lake Superior iron ores is done principally by drilling. The soft iron ores are churn drilled and the harder ores are diamond drilled. In exploratory work in the harder formations, where the diamond drill is used, the sample comprises both core and cuttings. The care given in handling and preserving the core depends on the im-portance that may be attached to certain characteris-tic strata in different formations. The following instructions for the care of core samples are issued by the Oglebay Norton Co. for diamond drill work done for them on the Gogebic Range of Michigan: The driller shall be careful upon removing the core from the core-barrel to keep the core in exact order. Not only should the pieces of core be kept in exact relation to each other, but care should be used not to turn them end for end. Core should be placed in the core-box from left to right in each row. Each drill should be furnished with small, hinged cover core-boxes, and each drill should be well supplied with empty boxes. Core remaining at the drill when the drillers are not working should be locked up. The practice of picking sample pieces of core and carrying them away from the drill to be examined in better light, or shown to someone else, is unnecessary and prohibited. The reason for this is that these pieces are seldom returned to the core-boxes and valuable information or "markers" may be lost. If the inspector suspects that a critical point is reached in the drilling and he cannot determine at the drill, he should remove the entire core-box and see that the drill is immediately furnished with an empty core-box. It is customary to split the core longitudinally so that one-half may be ground to a pulp for analysis and the other half may be kept for future inspection. The core should be filed in permanent core-boxes, properly labelled, if the core is to be kept in exact order as taken from the core-barrel. Otherwise, it is often filed in tin boxes inn the way that sludge samples are filed. To obtain the average analysis, the core and cutting samples obtained in the same run are analyzed separately and the analyses are combined in the proper ratio.

Jan 9, 1922

By Barry K. McMahon

Following minor slope failures at the commencement of mining the west wall of the Kanmantoo Mine was redesigned from an overall slope between haul roads of 55° to 46°. This decision was based on a probabilistic analysis which indicated that 46° was the optimum economic slope.

Jan 1, 1983

By J. Chupak, D. J. Salley, G. L. Simard

Radiotracers were demonstrated to be of considerable value in a study of the interaction of dithiophosphate with galena. The interaction had characteristics of both chemisorption and chemical reaction, being complex because of the nature of the galena surface. Sorption was rapid and markedly reversible, and flotation occurred at relatively small amounts of dithiophosphate sorbed.

Jan 3, 1950

By J. Gordon Parr, M. J. Bibby

In addition to the (bcc) - (cph) transformation at 882°C a second distinct change of slope has been observed on a titanium cooling curve between 905" and 960°C.1,4 Duwez,1 commenting on work by McQuillan,2-4 attributed this arrest to contamination of the specimen with oxygen—a possibility that existed even at the reduced pressure of 10-5 mm Hg at which the experiments were conducted.

Jan 1, 1963

Fourteen members of the Board and officers nf6re present; and seven guests. Prof. E. K. Judd was appointed Managing Editor of the Institute's publications.

Jan 11, 1917

By Christie A. Callender, Harry M. Dahl

The Hobson uranium deposit is located in Karnes County, Texas, along the prominent south Texas uranium trend. The uranium mineralization occurs in the Deweesville Sandstone of the Whitsett Formation of the Eocene Jackson Group. The host rock is a friable, fine-grained, well-sorted, highly porous and permeable sandstone interpreted to be an ancient beach deposit. The sandstone contains significant volcanic constituents and ranges in composition from arkosic to tuffaceous. Locally, the host sandstone contains hard, dense opal cement. Bentonitic shales underlie and overlie the mineralized sandstone unit. Geometrically, the Hobson uranium-bearing zone resembles an elongated roll front type deposit. Chemical uranium values compared with gamma ray equivalent uranium values indicate that the uranium has been dissolved from the updip side and precipitated on the down- dip side of the roll front. Details of the uranium mineralization were studied using thin section microscopy, autoradiography, x-ray diffraction (XRD), scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDS) techniques. The uranium mineralization occurs in the pores of the sandstone, as grain coatings and as replacement of sand-size and smaller grains. It is commonly associated with pyrite and other opaque minerals. Other favored hosts for uranium (other than pore openings) appear to be clay aggregates, altered rock and glass fragments, and carbonaceous plant debris. Aggregates of coffinite were identified by XRD and SEM/EDS analyses. Some uranium mineralization also appears to be dispersed and is postulated to be adsorbed on the clay and carbonaceous matter.

Jan 1, 1985

By W. Rostoker

LAVES and Wallbaum1 and more recently Duwez and Taylor' have reported on the occurrence of a family of intermediate phases having the composition Ti2X, where X may be Cu, Ni, Co, Fe, or Mn.

Jan 1, 1953