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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

By N. A. Stockett

Southeast Missouri is the largest and oldest lead-producing district in the United States. For the year 1941, the statistical picture of pig-lead production, stated in short tons (partly estimated by the Engineering and Mining Journal) is as follows. Tons World production................. 2,000,000 United States Production .........- 460,000 Southeast Missouri production..... 142,000 The consumption of primary lead in the United States in 1941 was approximately 900,000 tons, or almost double the country's production. The largest previous year's in in the United States was 718,000 tons, in 1926. The largest quantities of lead are used for cable sheathing, storage batteries and white lead. During 1941 tetraethyl lead for auto and aviation gasoline consumed 50,000 tons of lead. The entire lead production of Southeast Missouri is now mined by the St. Joseph Lead Co., whose dominant position as the largest producer in the United States of lead directly from ores is best shown by the fact that in 1941 it produced approximately 31 per cent of the lead production of the United States from its mines in southeast Missouri, where 22,000 tons of ore, averaging over 3.00 per cent lead, is mined per working day. It is known that lead was mined at Mine La Motte, Madison County, Missouri, by Renault in 1723. Other white men and Indians probably did some mining prior to that time. Since 1865, the recorded production to Jan. I, 1942, shows that the St. Joseph Lead Co. and the various other companies that have operated in St. Francois County mined lead ore, which, after milling and smelting losses produced 5,980,000 short tons of pig lead. • About 95 per cent of the present lead production of Southeast Missouri is mined in St. Francois County. The northern part of this area is 60 miles south of st. Louis. The remainder of the lead is obtained at Mine La Motte, about 25 miles southeast from the center of the producing area in st.Francois county, Prospecting In this district, most of the ore is discovered by surface and underground diamond drills and by prospect drilling underground with rock drills. Each 2-ft. length of the cuttings from these Jack-hamer prospect holes is assayed for lead. These holes are marked and the records are entered on maps. It has been found that close drilling—100-ft. centers of holes, and sometimes less—is necessary in order to locate most of the smaller commercial ore bodies, many of which previously had been missed by drilling the areas with holes spaced 200-ft. centers or more. To date, geophysical and other methods of prospecting, apart from diamond and Mining Practices of the St. Joseph Lead Company in Southeast Missouri

Jan 1, 1943

By N. A. Stockett

Southeast Missouri is the largest and oldest lead-producing district in the United States. For the year 1941, the statistical picture of pig-lead production, stated in short tons (partly estimated by the Engineering and Mining Journal) is as follows. Tons World production................. 2,000,000 United States Production .........- 460,000 Southeast Missouri production..... 142,000 The consumption of primary lead in the United States in 1941 was approximately 900,000 tons, or almost double the country's production. The largest previous year's in in the United States was 718,000 tons, in 1926. The largest quantities of lead are used for cable sheathing, storage batteries and white lead. During 1941 tetraethyl lead for auto and aviation gasoline consumed 50,000 tons of lead. The entire lead production of Southeast Missouri is now mined by the St. Joseph Lead Co., whose dominant position as the largest producer in the United States of lead directly from ores is best shown by the fact that in 1941 it produced approximately 31 per cent of the lead production of the United States from its mines in southeast Missouri, where 22,000 tons of ore, averaging over 3.00 per cent lead, is mined per working day. It is known that lead was mined at Mine La Motte, Madison County, Missouri, by Renault in 1723. Other white men and Indians probably did some mining prior to that time. Since 1865, the recorded production to Jan. I, 1942, shows that the St. Joseph Lead Co. and the various other companies that have operated in St. Francois County mined lead ore, which, after milling and smelting losses produced 5,980,000 short tons of pig lead. • About 95 per cent of the present lead production of Southeast Missouri is mined in St. Francois County. The northern part of this area is 60 miles south of st. Louis. The remainder of the lead is obtained at Mine La Motte, about 25 miles southeast from the center of the producing area in st.Francois county, Prospecting In this district, most of the ore is discovered by surface and underground diamond drills and by prospect drilling underground with rock drills. Each 2-ft. length of the cuttings from these Jack-hamer prospect holes is assayed for lead. These holes are marked and the records are entered on maps. It has been found that close drilling—100-ft. centers of holes, and sometimes less—is necessary in order to locate most of the smaller commercial ore bodies, many of which previously had been missed by drilling the areas with holes spaced 200-ft. centers or more. To date, geophysical and other methods of prospecting, apart from diamond and Mining Practices of the St. Joseph Lead Company in Southeast Missouri

Jan 1, 1943

By H. M. Chance

WITHIN the last 10 years the subject of mine taxation in its relation to coal-mining interests has come to have growing importance, not only to those engaged in the mining of coal, but also to the owners of land underlain by coal. A disposition has developed among legislators to accept the principle, which has been laid down y many judicial decisions, that coal underlying the surface must be regarded as a part of the real value of all properties so underlain, and as such is chargeable with such burdens of taxation as the necessities of the government may impose. These necessities arise from the normal expense of maintaining State and local governments, and in the past have been met principally by, taxes based upon assessments of real estate values, which values in many cases have been confined principally or wholly to the value of the surface, without taking into consideration the value of minerals underlying the surface. It is not proposed here to deal with the question of Federal taxation, whether levied on production, or on products transported from one State to another, or exported from the country, or upon thegross or net earnings of corporations engaged in interstate commerce, or upon the production of materials which may be transported from one State to another, or levied. upon the profits or upon the obligations of corporations. The present discussion will be confined to the appraisal of coal lands as assessed for State, county, township, or borough taxation. The methods heretofore and at present in use in the different States vary widely and have resulted in more or less litigation. Discussions appearing from time to time in the technical and trade journals and in the proceedings of mining and engineering associations frequently direct attention to the need for the adoption of fixed principle in levying taxes, and of uniform methods for applying such principles, but there does not seem to be a general demand from the public for the adoption of such methods.

Jan 7, 1914

By A. J. Phillips, C. G. Grant, Wm. B. Price

Admiralty nickel is a new corrosion-resisting and heat-resisting white metal alloy composed of 70 per cent. copper, 29 per cent. nickel and 1 per cent. tin. It has been given the trade name "Adnic." In 1924, Wm. B. Price' described this alloy and its successful use as a diaphragm metal. The physical properties of Adnic at ordinary and elevated temperatures were given in Mining & Metallury.~ A patent3 was granted on Adnic, April 28, 1925. Work was first started on this alloy during December, 1921. An investigation of the patent situation in this country and abroad, and also a search of the literature, did not reveal any work on the ternary diagram, copper-nickel-tin; and the only wrought copper-nickel-tin alloy found was that known as "Newloy," composed of copper, 64 per cent.; nickel, 35 per cent.; tin, 1 per cent. This was being manufactured and sold by Wm. Gallimorr & Sons, Ltd., Sheffield, England, for unplated spoon and fork stock, and first came to our attention in January, 1922. The preliminary work in connection with the development of Adnic was started by casting four binary copper-nickel alloys of the compositions shown in Table 1. Various a~ilounts of tin were added to each of these mixtures, to produce the series of ternary copper-nickel-tin alloys also given in Table 1. A 200-gm. sample of each of these was cast by iiielting in a clay graphite crucible and allowing the melt to slowly cool with the furnace. A longitudinal section from each of thcsc castings was polished and etched for examination. The castings were not homogenrous solid solutions, but showed the usual cored structure associated with cast alloys. Howcvrr, frorn an exarrlination of these sections we roughly determined

By Maurice E. Peloubet

This discussion of accounting will describe the statements and the information that the accounting system produces, from the point of view of those who use such systems rather than of those who prepare them and who do the detail and technical accounting work. In any well organized mine, quarry, or other enterprise exploiting a mineral deposit, no matter how small, some clerical and accounting work must be done. Miners and other employes must be paid, supplies must be purchased and issued, and various tax and information returns, which even the smallest enterprise must file, have to be prepared. In this chapter it is assumed that the enterprise has employes of this type and that they understand the fundamentals of record keeping and accounting. It would be impossible here to give sufficiently full explanations to enable a man with no previous clerical and accounting training to set up and operate an accounting and cost system for even the simplest extractive operation. Rather, we shall hope first, to tell the investor and the operator, from the chief engineer or president down to a subforeman, what to expect from the accounting statements and records and how to use this information in his daily work; and second, that it will enable the man with some knowledge of accounting or bookkeeping, but with little or no experience in any extractive industry, to set up and operate a satisfactory system for a mine or other extractive enterprise. For readers who wish to go further, the bibliography at the end of this chapter contains many references. The emphasis has, therefore, been placed on the statements to be produced and the purposes for which they are to be used rather than the underlying books and records. These are, with a few exceptions which will be described later, essentially what might be found in any industrial enterprise and would probably, in the extremely small enterprise, consist of handwritten journals, ledgers, analysis books, payroll books, and stores ledgers. In the larger enterprise, various types of mechanical accounting would be introduced in proportion to the complexity of the operation.

Jan 1, 1959

By F. N. Rhines, A. S. Nemy

The mode of high-temperature tertiary creep of 523-0 aluminum alloy was found to be strongly stress dependent. The occurrence of necking and/or fissures during tertiary creep exhibited a sequence with varying stress, wherein fissures with no necking occur at a minimum stress and necking with no fissures occur at a maximum stress. At an intermediate stress, tertiary creep begins without necking but with fissures in a region just beneath the external surface, followed by necking and the development of fissures along the axis of the specimen. The results are interpreted in terms of grain boundary gliding and the hydrostatic stresses produced by restraints to grain boundary gliding. THERE appear to be two possible reasons for the existence of a period of accelerating elongation prior to rupture during high-temperature creep in metals; namely, 1) a change in the structure of the metal itself, leading to a change in its response to loading, and 2) a reduction in the cross section of the metal resulting in a higher unit loading. Howe,' by annealing and retesting broken low-temperature creep specimens, found that irreparable damage is done once a metal is subjected to creep. Andrade2 first pointed out the association between the reduction in cross section and the increase in creep rate. The present research was designed to investigate both of these factors by retesting specimens machined from material which had been subjected to high-temperature creep testing short of rupture. EXPERIMENTAL METHOD An aluminum alloy, 52s-0, was selected for these studies because it is constitutionally simple, is strong enough to be relatively insensitive to mechanical damage during machining,3 and undergoes accelerating creep in a convenient temperature range. This alloy is hardened by 2.6 wt pct Mg in solid solution and is not subject to overaging effects; it has a very small quantity of an insoluble impurity phase, Mg2Si, finely dispersed throughout its micro-structure. Creep specimens, similar in design to ASTM 0.252-in. tensile specimens, were machined from 3/4-in. round stock and the surfaces were electro-polished. A 24-hr anneal at 500°C was then applied to stabilize the grain size to an average diameier of 0.27 mm. Subsequent heating for as long as 700 hr at the intended test temperatures produced no change in the tensile properties, indicating a well-stabilized state of the material. Corresponding to each of the typical testing conditions listed in Table I, one creep specimen was tested to destruction and this test was employed as a guide in the selection of times for subsequent tests. Duplicate creep tests were then run to various points along the creep curve to produce specimens which were used to determine changes in mechanical properties and microstructures. The latter were examined at the midsections of the specimens. Other specimens were tested to various stages of tertiary creep, after which they were remachined to new cylindrical test specimens, electropolished and re-tested in creep. RESULTS The major findings of this investigation may be illustrated by a comparison of the results of three sets of creep tests. These were run at 400°C at three stress levels, namely 750, 1000, and 1500 psi. In presenting these results in Figs. 1, 5, and 8, the creep curves are given in pairs: That curve of each pair which is drawn through filled circles corresponds to the initial test, and the curve drawn through open circles (and designated by - R) represents the result of retesting the same specimen after machining to a new cylindrical surface. The load was readjusted to the original unit stress at the beginning of each retest.

Jan 1, 1960

By Charles D. Russell, L. H. Jenks, W. J. Leas

A detailed description is given of an experimental method for determining relative permeability of porous media to gas. Results are presented for natural and synthetic cores. The experimental data for two and three phase systems are compared. The reproduci-bility of the equilibrium gas saturation ii demonstrated and the effects due to a variation in rate of gas flow are discussed. An attempt is made to correlate total permeability and rock textural factors with relative permeability to gas. Capillary pressure curves obtained simultaneously with the relative permeability curves are shown to be equivalent to those obtained in conventional displacement cells. INTRODUCTION The advances in petroleum reservoir technology during the past decade have made increasingly apparent the desirability of a simple, rapid, reliable metliod for obtaining relative permeability data on small cores. Such data are needed in order to study fluid mechanics in porous media and for the more refined reservoir behavior prediction calculations now under development. The early experimental work in this field was done by Wyckoff and Botset1 who measured relative permeabilities for gas-liquid mixtures flowing through

Jan 1, 1950

By A. U. Seybolt

A. U. Seybolt (General Electric Research Laboratory)— As pointed out in an earlier paper,41 it appears to be very difficult to nucleate Si3N4 in Si-Fe of silicon content up to around 5 pet. Therefore, one observes, as did Pearce, that equilibrations with nitrogen gas yield only nitrogen in solid solution at temperatures above about 700°C, or, as Pearce found, 770°C. Evidently, the free energy of formation of Si3N4 only becomes high enough at -770°C to overcome the reluctance of Si3N4 to nucleate. However, as mentioned in Ref. 41, if some Si3N4 is first formed by a mixture of ammonia and hydrogen, one can then replace this gas mixture by nitrogen gas, and either increase or decrease the amount of Si3N4 present at any temperature by suitable adjustment of nitrogen pressure: that is, to equilibrate with Si3N4. In the equilibration experiments cited in Ref. 41, equilibrium was approached from both sides, and it was found that samples up to 944oC, at least, were in equilibrium with Si3N4. Higher temperatures were not employed, as this would have necessitated a redesign of the apparatus for using nitrogen pressures in excess of 1 atm. To summarize, the results of Pearce's experiments and those of Ref. 41 cannot be directly compared because two quite different equilibria were studied. Therefore, the statement by Pearce on p. 1398 indicating apparent error in Ref. 41 is unjustified. M. L. Pearce (author's reply)— There was limited evidence obtained in the current investigation which would indicate that excessive "supercooling" did not occur. A small piece of the same resulting from heat treatment No. 5 in Table III was subsequently held at 800°C for 16 hr in 95 pet N-5 pet H. Isotope-

Jan 1, 1964

By Earl Oliver

This paper is based on the formula that the petroleum industry is sick—find the cause, eliminate it, and the industry will get well. There is perhaps no difference of opinion that the cause is overproduction, actual or potential. But that, again, is a result rather than a cause. The problem is to study the influences that serve to keep production and consumption out of balance. Production control is a popular theme and a natural one at this time when the whole world is unstable; but production control in its popular sense means little more than the application of emergency measures while danger threatens. Economists differ as to the effectiveness of these, most of which are designed to alleviate and not to cure, but we assume there are none who question the wisdom of promoting conditions under which economic forces are permitted to operate freely in bringing about stable conditions. The petroleum industry suffers from two classes of economic ills that serve to promote overproduction; namely, those which are common to all industries and those which are peculiar to this industry. It is of the latter I wish to speak. Strange to say, government is responsible in large part for this latter class of ills that affect the petroleum industry and we are coming to recognize that only through the assistance of government can they be corrected. Instability of the petroleunl industry, in so far as human agency was involved, had its inception in 1875 when a Pennsylvania jurist, called upon to make a decision for which there was no precedent and fancying he noted some resemblance between the so-called fugitive nature of oil and gas and that of wild game, made mention of that resemblance. Other courts being impressed by the analogy enlarged upon it, and gradually fixed upon oil and gas a legal status in certain important respects similar to that of wild game. Although later the courts abandoned this analogy, certain practices that developed out of that early concept have continued to this day and are largely responsible for the industry's present plight. Thus, instead of ownership in place that is characteristic of private property generally, the law of capture was applied to oil and gas. Now, the rapid and wasteful depletion of game

Jan 1, 1932

By B. H. Caudle, L. G. Davies, I. H. Silberberg

This paper presents a method of predicting the recovery and performance of a five-spot steam injection project, in which a realistic approach to pattern sweepout efficiencies is made. Published methods for radial systems were modified for the five-spot pattern by approximating the stream lines with straight lines radiating from the injection well and then converging to the producing well. In each radial segment, the position of the steam front and the temperature profile ahead of the steam front were determined by heat balance equations, which included an estimation of heat losses to surrounding formations. The location of the saturations behind the cold water front was determined from a Buckley-Leverett solution to the material balance equation. Results from this program show steamflood recovery in a five-spot pattern to be considerably less than that predicted for true linear or radial flow systems. For a specific reservoir containing 900-cp oil, a steamflood in a purely radial flow system was predicted to recover more than 75 percent of the original oil in place when 2 PV of water had been injected as steam. A five-spot steamflood with otherwise identical properties was predicted to recover 10 percent of the original oil in place when 0.15 PV of water had been injected as steam and to recover almost no oil thereafter. A cold water five-spot flood in this system was predicted to recover approximately W percent of the oil in place with I PV of water injected. For a five-spot pattern in an example reservoir with 10-cp oil, steam injection similarly showed lower ultimate recovery than water injection but no improvement in recovery rule. Introduction The thermal recovery method considered in this study is steam injection in a five-spot pattern. Pattern steam injection has been given little attention in the past, possibly because of some rather obvious disadvantages. Unless steam temperature is maintained throughout the entire swept area, the process will revert to simple waterflood with all heat being lost prior to reaching the oil bank. Also, the oil viscosity reduction takes place near the steam front and not around the producing wellbore, so that low producing rates must still be endured. This is the reason for the success of the steam stimulation, or cyclic injection, in which the fluids are produced from the same well used for injection. On the other hand, steamflooding can offer some advantages. Oil displacement is by four methods: (1) mechanical displacement by the condensed water, (2) viscosity reduction of the crude oil, (3) swelling of the crude oil, and (4) distillation of the crude oil in the steam zone. Although dependent upon the crude, laboratory experiments have shown displacements up to 80 percent by steamflooding. In addition, steam is a good heat transport medium, since it is cheap and has a high heat content. Previous Investigations Previous publications have reported methods for predicting recovery in a steamflood for linear and radial systems. Since no pattern sweep efficiency is taken into consideration, the recovery even from a radial system must be greater than from more realistic geometries such as the very common five-spot patterns. Probably the broadest coverage is given by Willman who reported experimental results and offered a method of predicting recovery for a radial flow system. They concluded that both hot water and steam injection recover more oil than an ordinary waterflood, and that steam injection could yield recoveries "as much as 100 percent greater than by water flood." They also concluded that both the heat requirements for a reservoir and the residual oil remaining in the reservoir after steam injection were independent of the amount of oil originally in place, that short exploitation times were desirable, and that a high percentage of net sand in the reservoir with a high initial oil saturation was desirable. The method assumes that the flood occurs in three concentric cylindrical zones: (1) an inner steam zone, (2) a central hot water zone, and (3) an outer cold waterflood zone. Displacement in the steam zone is based on laboratory-determined residual oil saturations while the hot water and cold water zones use the conventional Buckley-Leverett equations. Although the results shown by Willman et al. are for a radial system flowing out from the well to an assumed external circular boundary, their equations did

Jan 1, 1969

By Sir Robert Hadfield

Introduction.-I esteem it a great honor to be asked by this Institute to give them an address chiefly devoted to metallurgy. While it is with great regret that I find myself unable to be present to deliver this in person, I take this opportunity of wishing your society every success in its continued career of usefulness to the metallurgists of the great Republic. To be elected, eight years ago, along with Dr. J. E. Stead, F. R. S., as one of your Honorary Members, was a privilege which I greatly esteemed, for I consider that no society in America has done so much as ours for the advancement of metallurgy. Those who have Served our Society.-Where many have served so well, it is difficult, without appearing to make unavoidable distinctions, to select names from those of your members who have done so much for the cause we have at heart-the advance and progress of metallurgy. As typical, however, and not in any way meant as a complete list, there are among others the following names which in the past and to-day stand out prominently in this science of ferrous metallurgy. With most of those now mentioned I have personally come in contact, or by correspondence in some few cases, and have exchanged views, since I first came over to America 30 years ago. Holley; Jones; Weeks; Andrew Carnegie; Thomas Carnegie; Fritz; Sterry Hunt;. Egleston; Maunsel White and Taylor, who did so much for high-speed tool steel, and helped to revolutionize machine-shop practice; W. J. Taylor; Robert Hunt; Alfred Hunt of Pittsburg, who did so much in the early history of aluminum, and, alas! did. not live to see the wonderful progress which has been made in that particular branch of metallurgical industry; James Douglas; C. B. Dudley; Birkinbine; Howe; Metcalf; Barus; Langley; Raymond; P. H. Dudley; H. H. Campbell; W. R. Webster; E. D. Campbell; Talbot; Spilsbury; Gayley; Dinkey, under whose supervision and responsibility modern armor has been so successfully produced in this country, which the writer can testify from personal knowledge of , test results possesses very high Figure of Merit; Schwab; Kennedy; Wellman; Garrison; Wood; Moldenke; Webster; Swank; Unger; Richards; Sauveur; Strat-

Jan 5, 1914

By E. V. Given

Designing a tailing dam is a major step toward fully integrated mill operation. In the case of large concentrators considerable planning is necessary, and the site of the tailing disposal area may very well dictate the location of the concentrator itself. Before a suitable location can be selected several pertinent factors should be investigated: estimated life expectancy of the mine and, if possible, approximate total tonnage; knowledge of daily mill capacity; and the possibility of future mill expansion. In addition, the area should be able to store tailing for many years and, from a cost and maintenance stand- point, gravity flow will probably be desired.

Jan 7, 1959

By B. Thomas Mansbach

INTRODUCTION The Overseas Private Investment Corporation ("OPIC") is a U.S. Government agency mandated to promote the economic development of the less developed countries ("LDCs") by assisting U.S. private investment in the Third World. Generally, investment decisions turn on the optimism or pessimism of the private sector's financial analysis of a project, with market price of product a major unknown in a very chancy set of projections. Discussions with American mineral companies, however, show that, more often than not, in developing country projects it is the political risks of investing in mineral exploration and extraction that pose the most serious deterrent to investment. In several of the projects described here, investments would not have been made if OPIC had not been involved providing support to the project sponsors and their funding sources. Clearly it is not OPIC's business to promote U.S. investment in a project which is not commercially viable, but OPIC's programs can neutralize the political uncertainties which act as disincentives to investment in otherwise commercially viable projects. That is to say, OPIC's programs are designed to reinforce market decisions and not distort them. Although OPIC is an independent agency of the U.S. Government, it is managed by a Board of Directors, the majority of whom come from the private sector. This, coupled with the statutory requirement that it be self-sustaining and operate with due regard for the principles of prudent risk management, requires that it operate on a business-like basis. Although established as a development agency, to the business public OPIC is both an insurance company and a lending institution, with two major programs which are available to U.S. investors in the minerals sector: its political risk insurance program and its finance program. Each has been specially tailored to the meet needs of the mining industry. The insurance program provides coverage against four basic types of political risk: Currency Inconvertibility, Expropriation, loss caused by War, Revolution and Insurrection and Interference with Operations as a result of an act of War, Revolution or Insurrection. Coverage against the risks of Civil Strife can be added to both War, Revolution and Insurrection coverage and Interference with Operations. Inconvertibility coverage provides protection against a deterioration in an investor's ability to convert local currency into U.S. dollars. This deterioration can be the result of either active or passive delays. Active delays consist of a change in exchange laws or regulations that leads to inconvertibility delays of 30 days or more. For example, if the exchange regulations at the time of contract execution allow an investor to transfer earnings equal to 18% of its registered capital per annum and the government of the host country later changes the law to allow conversion of only 12%, the insured would convert the 12% transferable under the new exchange regulations with the government foreign exchange authorities, delivering the remaining 6% to OPIC for conversion at 99% of the then prevailing rate of exchange. (OPIC does not cover devaluation risks.) Upon delivery of the local currency to OPIC, normally at the U.S. Embassy in the project country, the insured's account in the U.S. would be credited with dollars. Delays can also result from what is termed passive blockage, which includes administrative delays of more than 60 days (sometimes longer) caused by the bureaucratic tie-ups or pigeonholding of transfer requests, as well as delays suffered simply because the government of the host country does not have sufficient foreign exchange. The transfer procedure is the same as with active blockage - the local currency is delivered to OPIC in the project country and OPIC provides dollars in the United States at the then prevailing rate of exchange. The second coverage -- Expropriation -protects not only against the loss of the investment due to the well-known risks of expropriation, nationalization or confiscation by the host government, but also against

Jan 1, 1985

By J. G. Hadley

IN THE early stages of the depression the Utah Copper Co. realized that an unemployment problem would he created which demanded an intelligent and sympathetic solution. The company recognized that as many men as possible must be kept at work on a basis which would ultimately permit of the most efficient reabsorption of displaced labor. The company therefore determined to distribute available work among the greatest number of men and to that end adopted a system of rotating employees on a part-time basis. An employer requires a certain number of days' or shifts' work during the month. Obviously one employee working thirty days or shifts a month is equal to two employees each working fifteen. In principle, therefore, where two employees equally fitted to do certain work are available the work could be divided between them on an equitable basis and twice as many persons would benefit. A rotation plan on this basis was adopted by the Utah Copper, Co. on Jan. 30, 1930. Some variations of the orig¬inal plan have been made from time to time, the reasons for which will be discussed.

Jan 1, 1932

By A. W. Hahn

THE importance, to geologists and metallurgists, of knowing the mineralogical forms in which the silver occurs in ores has increased during the past few years, and will continue to increase as long as working hypotheses are converted into proved theories and rule of thumb methods are supplanted by scientific data. The methods used for the determination of these silver minerals have been: (1) careful study of polished ore sections with the microscope, and more recently, (2) metallurgical separation of the ground ore by flotation, tabling and panning, supplemented by microscopic examination of these separated minerals, and chemical analyses. During the course of some experimental work carried on by the testing department of the International Smelting Co. and myself, it becomes important to determine, in a general way, the distribution of the silver values in the minerals, as they exist in Tintic Standard and North Lilly siliceous oxidized lead-silver ores. These mines are in the East Tintic Mining District, State of Utah. In this work the second method was used. Differential flotation tests were run, separating the sulfide from the oxidized minerals, and the products were assayed. Various concentrates were carefully panned and the separated products assayed; special samples of ore were selected and assayed. The microscope was used only for the purpose of determining whether the individual minerals were in the so-called "free" state.

Jan 1, 1929

By M. F. McCarty, R. S. Olson

New organic flocculants of high-molecular weight are replacing lime, glue, and starch in liquid-solid separation. Of these synthetic materials, poly-acrylamides are outstanding. Polyacrylamides form a class of compounds varying widely in composition and activity. Separan 2610, one of the first of these flocculants' released to the mining industry in 1954, is described' as a high-molecular weight polymer of acrylamide with or without a copolymer material and with some replacement of amide by carboxylic groups. MECHANISM OF FLOCCULATION In practice, flocculation makes solids settle faster and filter better. But two opposing factors control it. The random motion that causes particles to collide favors Van der Waals' forces, which hold the particles together. The effect of zeta potential opposes this contact, and particles are mutually repelled. Flocculation can be achieved by reducing the magnitude of the zeta potential; this is the mechanism of flocculation by lime addition. The way in which polyacrylamides accomplish flocculation is not fully understood, but the action is undoubtedly comp1ex and probably varies considerably depending on the system. To begin with, the active groups of these compounds have an extremely high affinity for solid surfaces, probably by hydrogen bonding." Initially some active groups of the molecule attach themselves to the solids with a large portion of the molecule extending into the solution. Two particles can become tied together by long flocculant molecules in the following ways—by bonding between the active groups of two flocculant molecules on different particles, or by an extended molecule from one particle attaching itself directly to the surface of the other particles." These flocculant bridges prevent the particles from moving apart through random motion, but when such motion moves them together other active groups on the flocculant bridge bond to the solids, holding them in the closer position. This process is repeated until the particles are close together. Although bridging is probably a major flocculation mechanism, it is not the only phenomenon involved. Relatively neutral acrylamide flocculants reduce the magnitude of the zeta potential by increasing the viscosity of solution in the immediate vicinity of the solid surface which contains the mobile counter ions of the double layer. In other words, it moves the shear surface which bounds the zeta potential out into the solution containing counter ions which tend to neutralize the zeta potential. This effect is probably more pronounced during the initial adsorption period, before the flocculant molecules are pulled close to the solid. In some cases the slight charge of the polyacry-lamide molecule tends to neutralize a zeta potential. However, this is not a primary flocculation mechanism, as evidenced by the fact that the polyacrylamides will flocculate solids with either positive or negative zeta potential. Adsorption of polyacrylamide flocculants by a solid is substantially an irreversible reaction. Since the flocculant molecule is attached to the particle surface by many active groups of high bonding strength, desorption would require the simultaneous breaking of many bonds—an unlikely occurrence. UNIQUE PROPERTIES The irreversible adsorption of certain polyacrylamides, the flocculant's high affinity for solid surfaces and its rapid adsorption make it effective, but these unique properties require special techniques to achieve maximum flocculation. If flocculants of this type are added to a pulp as a relatively concentrated solution, the solids in the

Jan 1, 1960

W. E. RUDER, Schenectady, N. Y. (written discussion?).-To many members of the Institute, papers like this one by Prof. Jeffries, and that on "Reversal of Inheritance" by Prof. Howe, may seem highly academic. Aside from their direct application to all heat-treating processes, to my mind, the establishment of a physical fact and the correlation of facts into a definite law are in themselves ample justification for immense effort. A law, once established, cannot be ignored by those who carry the work along to practical ends. In studying both papers, it seems to me that each author is more concerned with defending a theory than with explaining the individual results as published by various investigators. Take, for example, my sample of pressed electrolytic iron, frequently referred to by both. Prof. Howe, defending inheritance, says that the grains on the second (1300° C.) heating inherited their size from the mother austenite. Prof. Jeffries, defending reversed inheritance, elabor-.

Jan 4, 1918

By Charles R. Keyes

I. INTRODUCTORY. IN the dry regions of the globe many silver-deposits display certain remarkable features which at the same time are so totally unlike anything met with among ore-bodies elsewhere, that they have long presented exceptional difficulties not only to a satisfactory explanation of their origin, but to economical milling. A most striking peculiarity of these ores is the haloid character of many of their bonanzas. To this fact more than to any other may be ascribed most of the unusual uncertainties of mining-operations in desert countries-the marvelous local richness of the ores under certain conditions and the often abrupt transition, to utter poverty; the inadequacy of ordinary prospecting customs and the constant devising of new exploratory methods; the unaccountable losses in smelting and the continual change in treatment-practice. For these anomalies certain climatic conditions seem to be chiefly responsible.

Jul 1, 1911

By Heinz W. Duddeck, Hans-Konstantin Nipp

The design of storage space or deep mining in rock salt should take into account not only time dependency of the rock salt behavior but also temperature effects. For deep mining of potassium salt the natural increase of temperature with depth may no longer be negligible. For the storage of cryogenic liquid gas in salt caverns more knowledge is nezded about the propagation of deep temperatures and their effects on the stress-strain-creep behavior of the surrounding salt. High temperature problems arise for nuclear waste storages in caverns or drill holes emitting radiation. A numerical model is proposed for the analysis of displacements and stresses including their time and temperature induced change. For the material behavior of salt constitutive equations are chosen composed of a combination of Hooke-Kelvin-Bingham-Newton-model based on experimental results (excluding at present deep cooling), Langer 1980. The parameters involved are depending on the stress level and the temperature. The finite-element-method is applied to rotationally symmetrical three-dimensional problems. The non-linear calculation method is based on an implicit method with respect to time. A modified Newton-Raphson-method and the initial strain approach are employed. Along with some experiences on suitable numerical procedures, examples are shown for the characteristical effects of time-temperature dependency. Having achieved convergency and reliability a method is now available for practical design and parametric sensibility studies.

Jan 1, 1982