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By F. L. Clerc

The lead and zinc region of SW. Missouri is interesting, not only by reason of the value of its output, which ranges in the neighborhood of ten million dollars a year, but even more because of the facilities which it offers for the study of certain forms of ore-deposits, of' which the loci and genesis are somewhat obscure. Although the mineral species found in the region are few and of common occurrence, crystallization has taken place on a generous scale, and unusual forms abound in many combinations, presenting examples of pseudomorphism, para-genesis, metasomatic replacement and the action of mineral-depositing and mineral-dissolving waters. For the mineralogist, lithologist, and specialist in certain lines of metamorphism, it has peculiar attractions, while the systematic geologist will perhaps find its chief claim to attention in the simplified problem it presents, in the study of ore-deposits. In addition to the phenomena above enumerated, it presents instances of well-developed comb-structure in the ores, fissures and faults, and slickensides—features usually associated with extensive movements in the earth's crust, and believed by some authorities to prove the deep-seated origin of the ores. In connection with these occurrences, the absence of all igneous rocks from this region is noteworthy and significant. For that reason, the simplified case presented by the Joplin region, from which these rocks have been eliminated as a factor, is specially valuable. Having had unusual opportunities to watch the development of this district, I have been deeply interested in the bearing of the revelations of the Joplin mines upon questions of universal importance to the science of ore-deposits; and it was to my great regret that the project of a meeting of the American Institute of Mining Engineers at Joplin, proposed in 1892, was

Jan 1, 1908

By C. Stansfield Hitchen

THE introduction of the logarithmic sector method of quantitative spectrography by Scheibe and Neuhäusser in 1928, and the subsequent .modification and improvement of the method by Twyman and Simeon, would seem to have marked yet a further advance in quantitative spec-trum analysis and its industrial application, inasmuch as it offers a simple means of eliminating some of the uncertainties inherent in the older methods based upon mere visual comparison of line intensities. In their recent admirable review of the position and capabilities of industrial spectroscopy, Brownsdon and van Someren1 say: Ways and means of facilitating the comparison of line-intensities so as to give them numerical values are helpful, and of these a logarithmic sector rotating in front of the slit appears to he one of the most promising; . . . the success recently experienced by the author in using this method for the examination of steels and solutions of metallic salts prompted him ,to investigate its possible use in estimating the impurities commonly present in crude and refined tin. The results of this investigation are submitted in the present paper. Details of a number of spectrographic analyses of tin for various impurities have already been published. Thus, Schweitzer2 describes the spectrographic examination of tin for lead, bismuth and cadmium, and was able to distinguish between such atomic percentages as 0.01, 0.05, 0.10, 0.30, 0.60, 1.20, 3.00 and 10.00. Negresco3 investigated the bismuth content of tin over a range of from 0.0005 to 35 per cent. Meggers, Kiess and Stimson4 compare spectrographic and chemical analyses of tin metal for copper, lead, iron, zinc, silver, nickel and bismuth. They stress also the value of spectrum analysis in the examination of tin used for boiler plugs, where the requirements that only minute quantities of impurities shall be present render the chemical analysis both tedious and difficult.

Jan 1, 1933

By EVERETTE DE GOLYER

USE of geophysical methods in the search for new pools and as an aid in the development of known pools and prospects reached a new all-time peak for the oil industry in 1933. The outlook for 1934 is for work to continue at an even greater rate. The area of greatest activity, as in previous years, was in the Gulf coastal plain of Texas and Louisiana, particularly through a belt of territory some 20 to 30 miles wide parallel to the coast line and some 80 miles inland from it-the so-called "Jackson play" or "Conroe trend." This area was surveyed in an attempt to find additional pools of a type similar to Conroe, a pool not discovered directly as a result of geophysical surveys but one which was indicated by refraction surveys before it was drilled and one which was accurately outlined as to structure by reflection surveys shortly after the completion of the first few wells. Surveys were made over this belt, extending from Texas, across Louisiana and into Mississippi and Alabama, chiefly by the reflection method and torsion balance, and to some extent by pendulum and magnetic methods.

Jan 1, 1934

By David Cole

At the time flotation appeared upon the metallurgical horizon in Arizona, the writer, under the direction of Dr. Ricketts, was engaged in remodeling and enlarging the No. 6 Concentration Plant of the Arizona Copper Co. at Morenci, and the work had been in progress nearly a year before the Inspiration experiments with flotation had disclosed the revolution in concentration that was at that time impending. The simplified flow sheet worked out for the remodeling of the Morenci plant had been based upon the removal of the freed metal in a minimum number of stages by treatment upon tables equipped with Butchart riffles, the latter being adapted to accomplish both classification of feed and removal of the metal at one operation, substantially as described in my previous paper.l The scheme of treatment for the slime was based upon the well-known fact that after copper sulphides, such as chalcocite and chalcopy-rite, etc., are reduced to a certain extremely fine state of comminution they are definitely beyond the reach of separation upon any of the concentrating devices then known. By using drag-belt classifiers (which served as conveyors as well as separators), the overflow ,would be of the usual "slimes" class. Experiment had shown that when these drag-belt overflows were properly diluted (that is, to about 5 to 7 per cent. solids in the feed under treatment) the very fine sand, and especially the very fine but still granular sulphide particles, would, if given a short distance to fall, quickly settle out in prime condition to yield an excellent recovery on vanners; a further valuable feature would be that the very fine non-separable final overflow tonnage might be discharged direct to tailing, thus conserving space requirements so as to permit within the old building, without embarrassment, the increase of capacity required. For reasons that are obvious, this kind of feed preparation for the slime could not be successfully accomplished in any form of pointed boxes or

Jan 1, 1917

By Michael Chender

INTRODUCTION The project financing described elsewhere in this book is available to major mining companies on the basis of a strong balance sheet, a significant equity position in a project of proven feasibility, and a demonstrated ability to bring ore deposits into production. "Junior" mining companies, which are most active in Canada, Australia, the US, and South Africa, by definition do not meet these criteria. In many cases, junior companies will need to raise money simply to cover the costs of acquiring and exploring potential deposits. In what follows we will look primarily at junior financing practices in the US and Canada, although the same general principles will apply in Australia and South Africa. The principal vehicles for junior mine company financing are limited partnerships, the private placement of securities and debentures, and public offering of securities, and property deals with stronger companies, in the form of leases, earn-ins and co-ventures. The cost (in terms of dollars or equity) and, to some extent, the applicability of using these difficult approaches varies with the stage of development of the property and with the corresponding degree of risk to the investor. Much junior company fund raising is, in fact, "interim" financing in that it allows the company to improve its properties and develop its assets to the stage where more favorable financing arrangements may become available. Companies will therefore often use several of the approaches described above during the development life of a specific property. LIMITED PARTNERSHIPS Limited partnerships and syndications are a popular way of structuring the initial private financing of mine developments because of their attractive tax consequences for the well-to-do investor. Costs of exploration and development can in many countries be passed through as deductions to the limited partners, who are thus able to gamble on a possible windfall at little real cost. In addition to private Canadian funds, much German money flowed into Canadian exploration ventures on this basis, but stopped in 1982 due to economic conditions in West Germany. In the US, recent regulations have, in the great majority of cases, taken away the ability to "shelter" income in mining limited partnerships. Deductions taken by the individual investor cannot exceed the amount of money he actually has at risk. Nevertheless, the allowable deductions are still attractive and some of the major mining companies are now beginning to look at limited partnerships as a vehicle for attracting additional exploration funding. Ranchers Exploration and Development has successfully put together several drilling funds on this basis. THE PRIVATE PLACEMENT Initial funding for the acquisition and preliminary exploration of prospects is often accomplished through a private placement of unregistered securities or, where it is not a problem to carry debt on the statement, by a private placement sale of debentures. A fledgling company wishing to do a public offering may well be advised by an underwriter to accomplish a small private placement as a precondition of the larger offering. In this way, the sale of the registered securities is not inhibited by the company starting out with a debt-ridden balance sheet and no demonstrated ability to secure the additional financing generally necessary beyond the proceeds of that offering. In the US, the securities offered in a private placement are not registered with the Securities and Exchange Commission (S.E.C.) but are restricted as to their resale, and could be further restricted by a underwriting agreement

Jan 1, 1985

By C. Gregory Knight

The Pennsylvania Coal Model is a research activity of the College of Earth and Mineral Sciences of the Pennsylvania State University, in association with the Economic Development Council of Northeastern Pennsylvania, and the Southwestern Pennsylvania Regional Planning Commission. In this project, sponsored by the Appalachian Regional Commission and the Pennsylvania Science and Engineering Foundation, data banks and models have been developed to simulate potential coal production and utilization systems in Pennsylvania. Building from a coal system data base for 1974 and mining simulation models, computer optimization models predict potential coal production and transportation for alternative future demand scenarios. The model allows derivation of costs of various coal supply systems under specific economic, transportation, and environmental constraints. The model also provides insight into such impacts of coal production as employment, land use, and environmental quality.

Jan 1, 1977

By Charles Willis

MANY of the failures in vocational education are due to the fact that the educational methods were not designed to the capabilities, habits, and environments of those to be trained; rather they were based on the policy that education is education and lessons are lessons, whether for youngsters of fifteen or for men of forty. Vocational education among miners involves, first, a study of the men themselves, their habits, and the use of their leisure time; second, a study of the differences between the methods of teaching required for men and for children. Certain fundamental requirements of training methods for miners are reasonably universal and may be applied with success to any ordinary mining community. The rate of labor turnover is another consideration; it would be useless to design a four-year course for men who remain in one place only a few months.

Jan 7, 1919

By A. M. E. Eilers

No one who has visited our Western mining districts, and studied the economical part of the beneficiation of the ores occurring all over that vast extent of country, can underrate the high importance of the above subject. By far the larger number of the districts which contain smelting ores, i.e., argentiferous and auriferous lead, or copper ores, are situated in the Great Basin, that great plateau between the Rocky Mountains on the east, and the Sierra Nevada on the west, almost the whole of which is comprised at present in the boundaries of Nevada, Utah, and part of Arizona. This region is essentially a barren country. The extreme dryness of the atmosphere permits but a scanty vegetation in the plains ; and even in the detached mountain-chains running through it-generally from N. to S., or from N. W. to S. E.-there are no trees found except dwarfed pines and mahogany, at the head of sheltered ravines, and a few cottonwoods and willows, which fringe the insignificant streams, before the water sinks in the arid plains. Nearly all the mountain-chains in this region are rich in silver ores. That class of these ores which is adapted to amalgamation, and rich in silver, has been worked with profit for more than ten years. But before the advent of the transcontinental railways, mining was restricted to these ores alone, and the consumption of fuel could be met with the scanty supply of forest trees in the immediate vicinity of the mining districts. Since, however, the Union and Central Pacific Railroads have brought the Great Basin nearer to the commercial centres of the East and the Pacific coast, thus reducing the expenses of freight and labor materially, other silver deposits, containing poorer ores in greater abundance, have been rapidly taken

Jan 1, 1873

By H. G. Doll

A new electrical logging method. called MicroLaterology is described. whereby the resistivity R of the invaded zone close to the wall of the bore hole is measured. This method essentially utilizes a system of concentric circular electrodes iml,edded in an insulating support which is applied to the wall of the hole. A beam of current of very small diameter is focused horizontally into the formations by means of an automatic control device. and then opens widely at short distance from the wall. with this method, R most often can be recorded directly. except when the mud cake is very thick. in which case a correction is easily provided. The basic role of factor R in the quantitative analysis of electrical logs in terms of fluid saturation and of porosity is explained. The paper is illustrated with field examples. INTRODUCTION In electrical logging. the resistivity of that part of the penneable and porous formations which is invaded by mud filtrate is an important factor in the interpretation. Measurements made with the conventional devices — normal. lateral — and also with improved systems as the Laterolog and induction logging' — are very often more or less affected by the presence of the invaded zone. and the knowledge of the resistivity of this zone is useful in the evaluation of the true resistivity of the beds. which itself is a basic element for the determination of fluid saturation. Moreover. the comparison of the resistivity of the invaded zone with the resistivity of the mud filtrate gives valuable indications on the magnitude of the formation resistivity factor — which in turn is necessary for the quantitative interpretation of the logs. both in terms of fluid saturation and of porosity. On the other hand. it is generally admitted that the invaded zone is not a homogeneous medium separated from the uncon-tamirlated part of the bed hy a well defined cylindrical boundary. but that the fluid distribution—filtrate. connate water. hydrocarbon — and hence. the resistivity. in the invaded zone varies progressively with the distance from the wall of the hole. The term "resistivity of the invaded zone" therefore corre-sponds to an average value which is a function of the distribution of the fluids Inasmuch as the law of this distribution is not exactly known, the resistivity of the invaded zone is not a well defined factor. A much better definition is obtained if the medium under consideration is limited to that part of the formation which is within a short distance from the wall of the hole. It seems likely a within a distance of at least two or three in., most of the fluids in in the pores of tile formation have been displaced by the mud filtrate. The connate water has almost certainly been flushed out. and the oil. if any has generally been reduced to a comparatively small amount. The resistivity witliir~ the radial limit of two to three in. is. therefore. prac.tically constant at an). given level: its value. at least when the proportion of conductive solids in the formation is negligible. is chiefly dependent on the resistivity of the filtrate and on the porosity of the formation, and is affected only to a relatively small degree by the presence of the small amount of residual oil. This part of the formation close to the wall of the hole will he designated in the following as the "flushed zone." a-distinguished from the more general term of "invaded zone'. which relates to the part of the formation extending from the wall out to the distance where the formation is completely uncontaminated. The symbol R,, will he used for the resistivity of the flushed zone. (The notation R is related to the radial distance from the hole. If x designates this distance. xo is the initial value of x, i.e., the value corresponding to the region very close to the wall.) The determination of R is difficult, if not impossible. from logs made with the conventional devices. The long normal and the long lateral are. of course. not suited for this purpose because their radii of investigation are by far too large. The short normal. and the limestone sonde—-after correction for the effect of the hole hole — give resistivity values which corre. spond to materials situated within a comparatively short distance from the hole, but this distance is still several time. as great as the thickness of tire flushed zone. The only value which can be obtained with these devices corresponds to an average resistivity of the invaded zone- — and this only provided the invasion is deep enough, since otherwise the meas "red values would also be affected by the uncontaminated region beyond the invaded zone. It should nevertheless be recalled that despite these limitations. the measurements given by the short normal and or the limestone sonde are always very useful for qualitative interpretation. and also in favorable cases for the qantitative analysis of the logs in terms of saturation and porosity. The MicroLog. which was primarily developed for the detection of permeable beds and for an accurate determination of their boundaries. provides a good approach towards the evaluation of R. In the case of hard formation.. however. The

Jan 1, 1953

By Yap Chu-Phay

IN the previous paper, the writer showed how, on the basis of thermodynamic reasoning, it seems probable that when true equilibrium conditions obtain, carbon exists as Fe3C in the liquid state and as elementary carbon in the solid state (7 Fe), in which case the solidus would be a straight line from 0.18 to 1.70 per cent. carbon (Fig. 1). In the same paper he concluded that the solidus obtained by Honda 'and his co-workers1 probably does not represent the same conditions, insuring a complete equilibrium. Except for a downward temperature displacement, the solidus obtained by Gutowsky,2 using the Heycock and Neville method, practically coincides with Honda's solidus as shown in Fig. 1. The writer at first thought that perhaps in some way Gutowsky's thermocouple was improperly calibrated for high-temperature measurements, as his liquidus was also much lower than those obtained by Carpenter and Keeling3 and by Ruer and Goerens.4 However, the eutectic temperature obtained by Gutowsky agrees with the generally accepted value of 1130° C., so that the validity of the inference regarding improper temperature calibrations is to be strongly doubted. In Fig. 1, Gutowsky's solidus is shown both in the original and in the corrected form. In the latter, a correction of 29.2° C. is made for all temperatures above 1416° C. in accordance with-

Jan 1, 1931

By Klaus-Peter M. Hanke

INTRODUCTION In early 1979 Jim Walter Resources, Inc. (JWR) of Brookwood, Alabama approached TMCI Construction, Inc (TMCI) to make a proposal on a program that involved the sinking of up to 10 ventilation shafts of approximately 6.7 m (22 ft) diameter and ranging in depth from 500 to 700 m (1650 to 2300 ft) for the JWR coal mines in Alabama. At this time TMCI was already constructing the first spiral underground bunker (capacity 2000 tons) in North America for the JWR organization at their No. 4 mine in Alabama. The TMCI proposal was based on the use of the mos modern large diameter shaft boring machine rather than sinking the shafts using the conventional drill blast-muck technique. The proposal was made based o: the experiences by the parent company, Thyssen Schachtbau, which has been using this type of machin in Germany for shaft boring since 1971. As a result of the TMCI proposal JWR issued a purchase order to TMCI for the construction of four 6.7 m (22 ft) diameter, concrete lined, unfurnished ventilation shafts ranging in depth from 500 to 700 (1650 to 2300 ft). An order was thus placed with WIRTH Machinen- and Bohrgeraete Fabrik GmbH, in Germany for the manufacture of a model 650/850 E/Sch "Schachtbohrmaschine" (Vertical Shaft Borer = V-mole which arrived on site in Alabama in early 1981. The first V-mole GSB 450/500 was introduced in Germany in 1971 and was capable of enlarging in one step a pre-drilled 1.2 m (4 ft) pilot hole to 4.5 - 5.0 m (14.7 - 16.4 ft). This machine has sunk 9 staple shafts and deepened one surface shaft for a total of 2360 m (7740 ft) of shafts. On the last shaft boring operation in 1978 the machine was converted as an experiment to drill without a pilot hol using a hydraulic pumping system to remove the cutting debris. A second generation machine, the SB VI 500/650, was introduced in 1977 for enlarging the pilot hole to a range of 5.0 - 6.5 m (16.4 - 21.3 ft) diameter. This machine is still in operation and has already drilled well over 2000 m (6500 ft) of shaft. The third generation of V-mole, the SB VII 650/85( for diameters from 6.5 to 8.5 m (21.3 to 27.9 ft) was: commissioned in May 1980 and has been used for two surface shaft deepenings totalling 606 m (1990 ft) with another scheduled for 1982. The main advantages favouring the use of such V-moles were identified as: 1) A reduction in manpower to the crew required in a conventional shaft sinking operation. 2) A considerable reduction in time to complete a shaft compared to conventional techniques. 3) The use of the V-mole eliminates many of the hazards encountered in conventional sinking. Based on the successful performance of the first three V-moles in Germany, Thyssen Schachtbau decided to employ this principle abroad. In 1980 a second machine of the third generation was built and is now operated by TMCI Construction, Inc. in Alabama. The first shaft was completed at the end of 1981 and this paper describes the method of operation including some unique aspects not attempted on prior V-mole operations and some of the statistics arising out of the experiences during the first shaft boring operation. THE NO. 7 MINE FAN SHAFT SITE Jim Walter Resources, Inc. was formed in 1970 to exploit the coal field in Alabama on the southern tip of the Appalachian coal field. The coal reserves amount to around 650 million tons of mainly good quality coking coal of which about 350 million tons are to be extracted over the next 30 years. Shaft sinking and preparatory work began in 1972, and at present 6 mines are producing around 5.4 million t.p.a. Annual production is to expand to 10 million t.p.a. as soon as possible, and the ventilation shafts to be sunk by TMCI play a vital role towards attaining this goal. The first shaft site is located at the No.7 mine, near Brookwood, Alabama. The actual location of the shaft relative to the production shafts is shown on the mine plan (Fig. 1), which also shows the room-and-pillar extraction system used at present. The mine plan further shows the conveyor route used for the muck removal. The geological survey showed that the strata consisted of horizontal layers of mainly sandstone, sandy shale and shale interspersed with several coal seams. The seam being extracted at the No. 7 mine is a combined seam made up of the Blue Creek and Mary Lee seams at a depth of 513 m (1682 ft) and having an average seam thickness of about 2 m (6 ft). At the beginning of September 1980 the surface site preparation and pre-grouting work was completed by JWR, and TMCI was able to commence with Stage I of the shaft sinking program - the drilling of the pilot hole.

Jan 1, 1982

By Frank Firmstone

SINCE the blast fired August 15th, 1878, which was described by Mr. Clark,* and up to November, 1881, we have fired three smaller blasts, one in the: southwest corner of the quarry and two in-the but-tress of rock Left standing by the first blast rear the mouth of the main gangway. We intended to keep an exact account of the stone thrown down by each blast, but the large quantity required by, the furnaces since the beginning of 1879, and the time taken up by more important matters, have caused this to he neglected, so that it is not possible to separate exactly the, cost and quantity of stone obtained during this time by the old method from that furnished by the large blasts; yet as the latter quantity has beet much greater than the former, some notion of the value of the Jarge-blast plan may be reached by comparing the figures from September, 1878, to November, 1881, with those for times when the old system was exclusively used. Since 1878 wages have been raised, lowered, and again raised, and to get a year of sufficiently large production for fair comparison it is necessary to go back to that ending April, 1872, when wages and supplies were different from present prices and from those of 1878. * Transactions, vol. vii, p. 266.

Jan 1, 1882

Carlisle: An old friend and good friend, Alan Bateman, is the Silliman Professor of Geology Emeritus at Yale and editor of the Journal of Economic Geology. Now, Alan, let's start off by telling us something about how you became interested in copper. Bateman: Well, after I left Yale in 1913, I was appointed one of the field members of the Secondary Enrichment Investigation. We spent three years in the field studying all the copper deposits of North America, trying to find out how secondary copper enrichment took place. As part of this investigation, I went up to Kennecott, Alaska, in 1916. After the trip I was asked by the president of the company to become consulting geologist to them. I accepted his offer, and to this day I'm still consulting geologist to the Kennecott Copper Corp. Up at Kennecott, there were both Henry Krumb and my good friend Henry DeWitt Smith, who was general superintendent. He and I had been together at Yale, and I had ushered at his wedding. Interestingly enough, Henry took his bride to Alaska and I took mine there two months later. My assistant was Don McLaughlin, and I think that was his first experience in a mining camp. We published a paper on Kennecott together and cemented a friendship lasting to this day.

Jan 11, 1964

By P. F. Allen

With capacity of 51,000 tpd, the Morenci concentrator produces approximately 49,000 tons of tailing for final deposition. Disposal involves distrlbutlon of thickened tailing to dams in such a manner that solids can be used for dam construction and water can be impounded for reclamation. During early operation, although tonnage treated was lower, it was necessary to use orthodox disposal practices in the areas available for tailing. Trestles mounted on a series of dams, constructed of borrow material, carried the pipelines from which tailing were spigoted behind the dams. When adequate disposal areas were finally established, it became desirable to look for more efficient methods. The idea of placing the distribution pipe or manifold directly on the crest of the dam was advanced in 1945. After a period of testing, that procedure in modified form replaced the older trestle arrangement. Marked economies resulted, and time required to prepare dams for succeeding storage cycles was greatly reduced.

Jul 1, 1956

By Arthur Taggart

A GENERAL awakening of interest among mill men concerning the mechanical efficiencies of their crushing machines is evident from a perusal of the recent files of mining publications. Considering the large part of the power bill which must be debited to the crushing department, such. interest is natural. When, however, the articles on the subject are read, the only statement upon which the writers agree is that fine grinding consumes a large amount of power, and that the machine which, from a concentration standpoint, offends as a slime producer is, for that reason, a serious offender in wasting power. When the mill man attempts to find a method for measuring the power wasted, or to compare the efficiency of one machine with that of another for the same work, he is confronted with a choice of methods which lead to conflicting results. There are two reasons why the work of crushing is not more generally understood. In the first place, experimental data are difficult to obtain; and in the second place, before these data can be put in general form certain assumptions must be made. A difference in these assumptions by different investigators has led to conflicting conclusions. This conflict has resulted in the proposal of two laws. The first of these is the so-called Rittinger's law, which is variously stated as follows: . "The work of crushing is proportional to the reduction in diameter."-R. H. Richards: Ore Dressing, p. 304 (1903). "The Work required to crush rock is very nearly proportional to the reciprocals of .the diameters crushed to."-A. Del Mar: Engineering and Mining Journal, vol. xciv, No. 24, p. 1129 (Dec. 14, 1912). "The Work done in crushing is proportional to the surface exposed by the operation, or better expressed for this purpose, the Work done on a given mass of rock is proportional to the reciprocal of the diameter of the final product, assuming that all the mass has been reduced to one exact size, which is only theoretically possible."- A. 0. Gates: Engineering and Mining Journal, vol. xcv, No. 21, p. 1039 (May 24, 1913).

Jan 1, 1914

By Elizabeth L. Robinson

INTRODUCTION The financial structure of the mining industry has changed strikingly over the last thirty years. The changes that have taken place in the last ten years include both the acceleration of adverse trends in familiar balance sheet numbers and ratios, and the subtle but extensive increase in the complexity and diversity of funding sources, both on and off the balance sheet. The objectives of this paper are: 1. to briefly trace the evolution of trends in the mining industry's financial structure; 2. to focus in more detail on changes in the last decade; and 3. to analyze those trends both within the framework of capital structure theory, and in the context of changes in business and economic conditions. This survey focuses primarily on the mining companies listed on the major U.S. stock exchanges, since financial data for these firms are readily available. The producers of minerals are a diverse lot, however, and the quantitative data on "the mineral industry" as characterized in this survey fails to encompass the financial arrangements for the bulk of production worldwide, whether owned by governments or private-sector enterprises. Even large portions of the U.S. minerals industry - subsidiaries of still larger firms, medium-sized privately-held companies, and the small miners - were not included in the quantitative part of the analysis. THE EVOLUTION OF THE INDUSTRY'S FINANCIAL STRUCTURE In the aftermath of the business failures of the Great Depression, most borrowers and lenders considered minimal debt on the balance sheet the soundest policy. By the 1950's, however, a body of literature was developing which demonstrated that the use of leverage could improve the value of the firm, given a corporate tax structure which allows interest, but not dividends, to be deducted from income. Optimal Capital Structure The objective of undertaking a new project is to improve the wealth of the current owners of the firm. If internally-generated funds are insufficient to allow growth at the desired rate, the company can raise funds either by issuing new equity, or by incurring debt. The most attractive source is the one which will provide the funds for the lowest cost. Both stockholders and lenders expect to receive compensation for use of their funds at a rate which reflects two things: (1) the return they could earn in alternative investments, and (2) the riskiness of the projected return. Factors which increase business risk include the variability of demand, sales prices and input prices, and "operating leverage", or the proportion of fixed to variable costs. In addition, from the investors' point of view, the use of financial leverage concentrates risk onto the shareholders, because lenders enjoy a prior claim in the event of bankruptcy. So although financial leverage can increase a project's expected rate of return, and therefore, presumably, earnings per share, too much debt will be perceived as uncomfortably risky by equity investors, and have a negative effect on stock prices. In theory, then, there should be an optimal level of debt which the firm's managers should seek to obtain in its financial structure. The desirable proportion of debt should in general be lower for a firm with a higher inherent business risk. In addition to their own judgement, financial managers are sensitive to the attitudes of lenders, rating agencies, and investment bankers in setting financial targets (Scott and Johnson). In practice, financial structure will also depend upon the company's growth rate and level of profitability, and conditions in the capital markets at a given time.

Jan 1, 1985

By Nicasio del Castillo

INTRODUCTION The tax structure of foreign mining investment into the United States has a significant impact on the financing and the profitability of the operation. For these reasons, it is critical for the foreign investor to develop and implement a well planned tax strategy that will enable its venture to: (1) reduce its U.S. income tax liability (2) lower U.S. withholding taxes when funds are transferred from the United States, and (3) decrease or defer home country taxation on its U.S. earnings ALTERNATIVE FORMS OF INVESTMENT A threshold business and tax consideration is the form in which the investment is to be made. The most common alternatives include: forming or acquiring a U.S. mining corporation, directly establishing a branch mining operation, or entering into a joint venture or partnership with a U.S. mining company. U.S. Corporations The most common structure through which foreign mining companies engage in business in the United States is to form a U.S. mining corporation. Forming a U.S. Corporation. If the investor decides to establish a new U.S. corporation the organization is relatively simple. No distinctions are made in the United States between "public" and "private" forms of incorporation. Minimum share capital is not usually required and share capital may consist of shares with no par value. Since corporate law is the responsibility of the individual states, the foreign investor must choose a state in which to incorporate. If appreciated mining property is transferred to a corporation solely in exchange for stock or securities in that corporation, and the transferors have control of the corporation (defined as at least 80 percent of all voting shares and at least 80 percent of all other shares) immediately after the exchange, no gain or loss will be recognized. However, if the transferors receive cash or other mining properties in addition to stock, any resulting gain may, in certain situations, be taxed to the extent of the cash and the fair market value of other property received. Acquiring an Existing U.S. Corporation. Acquiring an existing U.S. mining corporation is not as straight-forward as forming a corporation. This alternative may be accomplished through either a stock or an asset acquisition. Generally, with a stock acquisition the purchaser inherits all of the business and tax attributes of the former mining corporation. If the investor is able to acquire mining assets, however, the purchaser will usually be able to avoid any unknown or hidden liabilities that could be attached to an existing corporation. Another principal advantage in acquiring assets is that the purchase price may be directly allocated to the acquired mines or other mineral-related assets with the result that the assets' depreciable base may be increased. Assuming the domestic seller and the foreign purchaser can agree, it is generally advisable to allocate the purchase price in the sales agreement to specific individual assets. From the foreign investor's standpoint, it is preferable to allocate the purchase price to depreciable assets such as buildings and equipment versus an allocation to mineral land holdings or intangibles such as goodwill, which are generally not depreciable. It is not uncommon, however, for a seller mining company being acquired to insist for tax reasons that the investor purchase shares rather than assets. If the foreign

Jan 1, 1985

By Mark R. Lamb

The treatment of slime is of special interest to those engaged in cyaniding gold- and silver-ores. The usual practice is to make as small a percentage of slime as possible. In many instances the slime is given no treatment, but is impounded in dams in the hope that the future will develop some method of economically treating this product. The filter-press was the first step upward from ordinary decantation, but, on account of heavy labor-charge and high cost, its use has been limited to high-grade material. The slime at the Combination mill at Goldfield averages perhaps $20 per ton, and although the values are quickly dis solved the filter-press installation was not entirely satisfactory, resulting in the erection of the canvas-cell filter, developed by Chas. Butters and his staff. This filter is a great improvement over the filter-press, and the following description of it will be of interest to those engaged in treating slime produced in crushing ores, especially in view of the fact that, by the use of this filter, slime can be treated at a lesser cost and with a higher percentage of gold- or silver-extraction than in the ordinary treatment of sand; and, moreover, the initial outlay for an all-sliming plant is less than that for the ordinary sand- and slime-plant. The economy of construction of the Butters filter-plant is clearly shown in Figs. 1 and 2, which illustrate the 20-frame filter of 40 tons capacity, now being installed by the Nevada Goldfield Reduction Co. In this construction the slime-pump is so connected that it call pump to or from either tank or the filter by changing the valve-settinga—a combination which is necessary in this particular installation, since sufficient fall is not available for filling and discharging the filter by gravity. Ordinarily, a slime-plant comprises: a filter-box with frames

Jan 1, 1908

By E. A. H. Tays, F. A. Schiertz

In 1893 the Anglo-Mexican Mining Company, Limited, purchased the Guadalupe and adjoining mines, and, after opening up the Guadalupe, constructed a 20-stamp mill, which was started in August, 1894. Although the results were extremely profitable (the ore being very rich and carrying much free gold) they were not satisfactory, because the tailings were found to average about $20 per ton in gold. Early in 1895 the late Mr. James E. Mills made for the company a very thorough study of the subject, and decided that the tailings could be treated most advantageously by the cyanide process. In view of this opinion, Mr. Henry R. Batcheller, of Boston, was sent down in the winter of 1895-96 to experiment on a working scale. Mr. Batcheller was successful; and, during 1896-97, built a cyanide-plant with a capacity for treating 1500 tons per month. This was run until May, 1899, when all the sands suitable for the process had been treated. The mill was stopped about the same time for lack of ore; but no tailings from the mill had gone to the dump since October, 1897, as the values they contained after that date were far too low to warrant further treatment. When the cyanide-plant was stopped there still remained on the dump about 16,000 tons of slimes, consisting of about 75 per cent. of clay-slimes and 25 of sand-slimes. The successful treatment of this very unfavorable material is the theme of this paper. Fig. 1 is a view of the hacienda, taken in 1897.

Jan 1, 1902

By David L. Riley

Organization The Foundling Years - 1901-1921 Two events that occurred in the decade of the 1870's have had far- reaching effects upon the petroleum industry in the U. S. and formed a basis for the birth and growth of the petroleum engineering profession. In 187 1 a group of mining engineers banded together to form the American Institute of Mining Engineers "to promote the arts and sciences connected with the economic production of the useful minerals and metals and the welfare of those employed in these industries by all lawful means". Although it was to be 30 years before an event in Jefferson County, Tex., would cause petroleum to come into prominence as the world's principal source of energy, the founding of AIME provided an organization through which the application of engineering to the recovery of petroleum and natural gas could be developed. In 1875, a Pennsylvania judge who was called upon to make a decision for which there was no precedent reasoned that oil and gas were like wild game - they belong to the man who can reduce them to possession. His decision sired the "rule of capture", which stated that a landowner possesses the oil produced from his well, even though it might have come from beneath his neighbor's land. This interpretation prevailed for more than half a century, during which time gold-rush tactics were employed in the drilling and production of many oil fields in the U. S. The resulting overproduction and tremendous waste led to a virtual economic collapse of the U. S. petroleum industry by the early 1930's. To bring these malpractices under orderly control, proration and conservation policies were developed, and petroleum engineering became the medium through which they were devised and implemented. At the turn of the 20th Century, more than 90 percent of this country's oil production came from the East, but the picture changed with dramatic suddenness on Jan. 10, 1901. Captain Anthony F. Lucas, an Austrian mining engineer, had noticed concentrations of oil and gas near salt domes during mining operations on the Louisiana Gulf Coast. In 1899 he leased a low mound near Beaumont, Tex., began drilling, and after almost 2 years of intermittent operations, brought in the famous "Lucas Gusher"

Jan 1, 1971