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By Louis D. Huntoon

SHORTLY after publication of the article in the July, 1924, issue Of MINING AND METALLURGY, entitled "Canada as a Gold Producer," requests were received to determine the ownership of production. Advices have also been received that considerable discussion has taken place on the same questions both in Canada and Great Britain. The author is indebted to R. H. Coates, Dominion Statistician, and George C. Bateman, Secretary, Ontario Mining Association, for the following figures and takes this opportunity of expressing his appreciation. There have been no statistics compiled as to ownership of production. Statistics were compiled as of Dec. 31, 1921 relative to the distribution of stocks, bonds and "other securi¬ties" in industrials, agriculture excepted, throughout the Dominion, and "distribution of ownership of securities issued by mining companies incorporated and operating in Ontario" for the same year. Stock registration does not necessarily represent actual ownership' as large blocks may be endorsed and not transferred; neither does registration actually represent production. When the charts are studied individually and collectively one cannot help but be impressed with the fact .that in the mineral industry of Ontario and the Dominion at large, Canadian registration predominates, the United States registration is about half that of Canada, and Great Britain is about half that of the United States. When the nickel-copper industry is excepted the British registration falls to a very low percentage. Since Dec. 31, 1921, British capital has commenced to flow into mining enterprises in Ontario and it has been already rewarded by the discovery of valuable ore deposits.

Jan 1, 1925

By FREDERICK W. BRADLEY

MINING methods are evolved rather than devised; and the process is slow. The advance in no particular year is phenomenal, but progress is un- questionably being made constantly in several directions: (a) better adaptation to given conditions of various "systems" of mining; (b) better utilization of mechanical equipment ; (c) improvement in working conditions so as to promote the health, safety and efficiency of the workers. During the year 1930 operations were commenced at a number of important new mines. Methods adopted are not new, except in minor detail, but the fitting of methods to conditions is interesting, because, as the engineers presumably started from scratch, they have selected the methods that experience under similar conditions has indicated as being the best.

Jan 1, 1931

By Edna A. Dancy, Gerhard J. Derge

Jan 1, 1963

By Max Hebgen

Within the State of Montana the streams rise in the high mountains at. an elevation of from 5,000 to 8,000 ft. These streams leave the State line both east and west at elevations from 3,500 to 2,400 ft. It is, therefore, apparent. that all these streams have an average fall of 3,000 ft. within the confines of the. State, and many opportunities are presented on all streams. for the development of power, by taking advantage of the natural fall. It is probable that 1,000,000 h. p. can :be developed in the State of Montana. I. NATURAL FEATURES OF STATE AFFECTING POWER DEVELOPMENT. The main. range of the Rocky mountains, forming the Continental Divide, cuts the State of Montana into two parts. The eastern part is drained by the Missouri river and its tributaries, the Madison; Jefferson, Gallatin and Yellowstone, rivers. The western part is drained by tributaries to the Columbia river, the Clarks fork and the Kootenai river. The Clarks fork in turn is formed by the junction of Missoula and Flathead rivers, the latter, draining Flathead lake. The western part of the State. is mountainous and the eastern part is comparatively level. As a natural result the rivers in the western part are capable of generating large amounts of power, while in the eastern part of the State natural power sites are much fewer and farther apart. It also follows that in the mountainous districts large amounts of power are required for the mining industry, while in the eastern part of the State, which is principally devoted to agriculture, power is required in smaller quantities. ?

Jan 8, 1913

By G. R. St. Pierre, A. J. Wilhelem

In connection with the reduction of hematite or magnetite to metallic iron, it appeared desirable to study the rate of reduction of each oxide to the next lower oxide under conditions which excluded all other condensed phases. For this purpose, pellets of Fe,O,, Fe,O,, and oFeOo were prepared. A gas train for the preparation of Ar-Hz-H20 mixtures was employed to establish a continuous flow of a controlled atmosphere over a pellet suspended on a balance. In this manner the following individual reduction steps could be studied: For example, pellets of hematite were reduced solely to magnetite by adjusting the gas atmosphere such that it was oxidizing to wustite. In other words, the reaction was complete when the hematite pellet had been totally converted to magnetite. The pellets were prepared from Baker Chemical ferric oxide. The ferric oxide powder was moistened and handrolled. Air sintering at 950°C produced Fe,0, pellets with a density of 3.65 g per cm3. The pellets ranged in size from 0.6 to 1.2 cm diam. The magnetite and

Jan 1, 1962

By C. H. Green

. RECENTLY two papers on the structure of eutectics were read before the British Institute of Metals, one by F. L. Brady1 and the other by A. Portevin.2 In the preparation of photomicrographs of laboratory specimens as illustrations for student work, and in connection with various researches; the writer has been working along the same line for some, time and, therefore, was much interested in the results given, especially those of Portevin. He has correlated the information on the subject and has outlined a broad scientific basis for future work along this line. It is largely with the idea-of adding something by way of illustration to the work already done that this paper is written. The eutectic is generally understood to mean the alloy having the lowest melting point of any alloy of the system, and in which the melt becomes supersaturated with reference to the two or more phases which, separate out simultaneously (or alternately). From the surface pattern, the eutectic means; a structure with no primary crystals. It is not always easy to get the exact eutectic composition in making any alloy; in fact, a slight range in composition may be expected and some of the coarser particles may be richer in either of the composing metals. Even when chemical analysis shows the right composition, differences in density of the pure metals may cause segregation, or. supercooling resulting from different crystallizing properties may give a surface pattern the appearance of being on one side of the eutectic point. However, the alloys on either side of the eutectic composition, showing primary crystals of one of the phases and the effect of the pro-eutectic form on the surface pattern of the eutectic make a very interesting study, which is slightly touched upon in this paper. The phases, or microconstituents, of a eutectic may be pure metals (Pb-Sb, Tl-Au), solid solutions (Cd-Zn), a pure metal and a solid solution; (Ag-Sn), or a pure metal or solid solution with an intermetallic compound (Sb-Mg, Sb-Cu, As-Cu, Bi-Te, etc.).

Jan 2, 1925

By L. F. Reinartz

The furnace in which rimming steel is made has an important bearing on the quality of the steel produced. Furnace.—Particularly in the manufacture of low-carbon rimming steels, it is necessary to have an efficient, easily regulated furnace, because of the relatively high finishing temperature requirements. In recent years, the most important development in design of open-hearth furnaces has been the sealing and insulation of the greater part of the furnace to prevent air infiltration and loss of heat. Efficient, straight-line valves insure proper draft. Combustion controls guarantee correct gas-air ratios. Furnaces of all sizes ranging from 20 to 200 tons have been used successfully in the manufacture of rimming steels. Metal bath is varied from 20 to 40 in. in depth without appreciable variation in quality. Charging.—A normal open-hearth charge consists of pig iron (hot or cold), scrap of miscellaneous nature, and slag-making additions, such as limestone and burnt lime. Because of local conditions, some plants find it necessary to discard the use of pig iron and use some carbonaceolis substances with varying percentages of cast iron to replace the pig iron. It is questionable whether such practice will consistently produce the quality of rimming steel required for auto stampings and other severe drawing requirements. Pig Iron.—An open-hearth furnace under proper control should melt 150 tons of low-carbon rimming steel on about 35 to 38 per cent pig-iron charge basis. In some practices, best results are obtained when the total charge contains from 0.40 to' 0.50 per cent silicon. If reasonably low-

Jan 1, 1935

By L. F. Reinartz

The furnace in which rimming steel is made has an important bearing on the quality of the steel produced. Furnace.—Particularly in the manufacture of low-carbon rimming steels, it is necessary to have an efficient, easily regulated furnace, because of the relatively high finishing temperature requirements. In recent years, the most important development in design of open-hearth furnaces has been the sealing and insulation of the greater part of the furnace to prevent air infiltration and loss of heat. Efficient, straight-line valves insure proper draft. Combustion controls guarantee correct gas-air ratios. Furnaces of all sizes ranging from 20 to 200 tons have been used successfully in the manufacture of rimming steels. Metal bath is varied from 20 to 40 in. in depth without appreciable variation in quality. Charging.—A normal open-hearth charge consists of pig iron (hot or cold), scrap of miscellaneous nature, and slag-making additions, such as limestone and burnt lime. Because of local conditions, some plants find it necessary to discard the use of pig iron and use some carbonaceolis substances with varying percentages of cast iron to replace the pig iron. It is questionable whether such practice will consistently produce the quality of rimming steel required for auto stampings and other severe drawing requirements. Pig Iron.—An open-hearth furnace under proper control should melt 150 tons of low-carbon rimming steel on about 35 to 38 per cent pig-iron charge basis. In some practices, best results are obtained when the total charge contains from 0.40 to' 0.50 per cent silicon. If reasonably low-

Jan 1, 1935

By Jack L. Taylor

As expected from similar crystal structures and favorable atomic size factors, titanium, vanadium, and molybdenum are completely soluble in one another above the transformation temperature of titanium. The fl phase parameters of the continuous solid solution are shown graphically. Limiting compositions for retained fl phase have been determined. VANADIUM and molybdenum both have body-centered-cubic structures at all temperatures and, from the atomic diameter comparison factor, 3.9 pct, would be expected to form a complete series of solid solutions. The existence of complete solubility has been confirmed by work' at the Jet Propulsion Laboratory. Furthermore, vanadium and molybdenum have favorable atomic size factors to form complete binary solid solutions with the B phase, high temperature form of titanium, which also has body-centered-cubic structure. Pietro-kowsky and Duwez' and Hansen et al." have established the existence of the complete series of solutions in these binary systems. It would be logical, therefore, to expect that p-titanium, vanadium, and molybdenum would be completely soluble in one

Jan 1, 1957

By R. Costantini

The author discusses the promising future of the use of pipelines for transportation of ore slurries over long distances, citing existing installations. Various criteria and factors affecting the use and size of pipelines are considered. Among the factors influencing the use of pipelines are particle size, specific gravity, abrasiveness, minimum velocities, and pumping considerations. Long-distance transportation of solids by hydraulic pipelines holds the promise of great economic benefits. Today within the confines of most mineral processing plants, the moving of solids about in slurry form by pipeline is commonplace, since the method offers great advantages when conditions are suitable. Yet, this method is surprisingly slow in being adopted on a broad scale for transportation of solids over long distances (arbitrarily the term will be applied to one over five miles long). This is especially surprising in view of the successful realization in this country within the last five years of two daring ventures in long-distance solids pipelines. A 72-mile long, 6-in. diam pipeline of the American Gilsonite Co. has been satisfactorily transporting 700 tpd of gilsonite from the mine at Bonanza, Utah, to the processing plant at Grand Junction, Colo., since April 1957. The 108-mile long 10-in. diam pipeline of the Pittsburgh Consolidation Coal Co. has been transporting about 4000 tpd of finely crushed coal from the mine at Cadiz, Ohio, to the Eastlake power plant of the Cleveland Electric Illuminating Co. on Lake Erie since January 1958. However, besides two projects in the operations of The Anaconda Co. there have been hardly any other significant solids pipeline developments in the minerals industry during the last three years. The two projects are the 14-mile long, 6-in. diam copper concentrate gravity pipeline at Anaconda's El Salvador project in Chile which has been transporting about 800 tpd since January 1959. The second is a 16-in. diam tailings pipeline at the Anaconda Reduction Works, Anaconda, Mont., designed to transport about 20,000 tpd of deslimed flotation tailings for dam building. This pipeline, which is currently undergoing tryout tests and which will be about seven miles in length, will have a maximum of three 20-in. rubber-lined centrifugal pumps in series at the starting point, each developing a maximum of 100 ft of head, to supplement gravity. It is the writer's opinion that the major reason for the hesitation in considering pipeline operations is confusion due to an inadequate understanding of the basic physical principles affecting the slurry flow process by many engineers in the industry. This in turn begets an attitude of fear and trepidation instead of confidence on the part of many management executives, which leads to a minimizing of the advantages and exaggeration of difficulties when considering the possibility of a long-distance solids pipeline. The promotion of better understanding and consequently the promotion of greater confidence in the potentials of long-distance solids pipelines when conditions are suitable is thus the main purpose of this article. To this end, after considering several examples of the possibilities for solids pipelines in the minerals field, the relative significance of the major factors affecting pulp flow, and some major aspects of slurry pumping will be discussed on a general qualitative level. Then a brief outline of the semi-empirical quantitative methods developed to date for estimating slurry flow behavior will be presented. SOME POSSIBILITIES To give an idea of the magnitude of the possible economic benefits, it should be interesting to mention briefly some of the projects currently under consideration and to suggest some likely future possibilities. At Anaconda's El Salvador Project in Chile (Fig. 1) it is eventually planned to extend the existing 14-mile pipeline by another 60 miles to bring the copper concentrates down to the coast of the Pacific Ocean. Preliminary tests indicate that the projected 6-in. pipeline will be able to transport approximately 2000 tpd of concentrates at a pulp density of 40 to

Jan 1, 1961

By Francois E. Heuze

The Crestmore Mine of the American Cement Company lies at the eastern end of the Jurupa Mountains, 50 miles east of Los Angeles. Originally, a quarry was opened in 1908 for "limestone" used in the manufacture of cement. The mining operations eventually went underground employing first a modified system of block caving and later the "room and pillar" scheme. The limestones are relatively small roof pendants preserved in an enveloping and intrusive quartz diorite. They occur as two irregular lenticular bodies roughly parallel at the top and tending towards convergence at depth. Their dip varies between 25 and 30 degrees E. The presently mined lower bed, Chino limestone, is typically composed of alternating bands a few inches to a few feet thick of medium to coarsely granular white crystalline limestone and somewhat yellowish limestone (brucite marble). A "room and pillar" scheme of mining is currently employed in the lower body of the Crestmore Mine. The levels are horizontal and access is provided by a spiraling road starting in the old quarry. The present depth of operations is an average 750 ft below the surface. Fig. 1 gives a three-dimensional general sketch of the mine. The long axis of the rooms is in an E-W direction, normal to the strike of the beds. Fig. 2 is a horizontal map of the 130 level, the deepest level mined presently. It is in this level that most of the in-situ investigations have been conducted. The present investigation was made possible by a non-restrictive grant of the American Cement Company to the University of California. The program included a series of in-situ tests using flat-jacks, plate bearing,

Jan 1, 1968

By Richard F. Link, George S. Koch

Advantages and disadvantages of deflecting (wedging) diamond-drill holes to obtain sampling data are compared with the alternative of drilling additional holes. The discussion is based on a statistical analysis of a large set of deflection data from exploratory boreholes in South African gold mines. Representative cost comparisons show the conditions under which deflections are likely to be desirable.

Jan 1, 1969

By E. G. Spilsbury

AS a fresh illustration of the advances made in the past few years in the overhead-cable systems of hoisting and conveying, as applied to open-cut deep mining and quarrying, I would call attention to a further development of this system of transportation which has lately been put in operation i-n this State. A few miles above Williamsport, on the Susquehanna river, the Glen Union Lumber Company, of Pottsville, Pa., owned a large tract of valuable timber-

Jan 1, 1892

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By E. W. Krampert

The oil industry was very active in Wyoming in 1936, in contrast to the several quiet years preceding. Production for the year again increased about 7 per cent, following an 8 per cent increase in 1935. During the year, 85 oil wells were completed, compared to 55 in 1935. Three gas wells were completed in 1936, and three in 1935. At the end of the year 45 wells were drilling, as compared to 55 drilling at the end of 1935. Two new oil fields and one new gas field were discovered in Wyoming during the year. In the year 1936 Wyoming produced 14,475,431 bbl. of oil, a gain of 1,001,081 bbl. over the 1935 figure of 13,474,350. This increase, in the main, was due to the taking of light oil from the newly developed Sundance sand pool at Lance Creek, and from the new fields, Quealy and Medicine Bow, which contributed their first production this year. Most of the other old fields either were partly shut in in competition with the new fields, or showed a normal decline. This was especially noticeable in the black-oil fields, where production had been slowly but steadily increasing for a number of years. During 1936 black-oil production decreased approximately 100,000 bbl. as compared to 1935. The only black-oil field to show marked increase was Garland, which managed to take the market from less favorably located fields. The production of Wyoming in 1936 was 11,358,757 bbl. of light oil and 3,116,674 bbl. of black oil. Salt Creek, with a production of 6,015,000 bbl., is still the largest single oil-producing field, accounting for 42 per cent of the year's total production. Lance Creek, an old field, with newly developed production in the Sundance sand, reached second place this year for the first time in its history, with a production of 1,878,486 bbl. Lance Creek production will almost equal that of Salt Creek in 1937, if the present rate of production is maintained during the coming year. Oregon Basin, a large black-oil field, held second place in 1935, but owing to a greatly lessened demand for its production, dropped back to third place in 1936. This was in part due to greatly increased light oil available, and in part to the greater supply of black oil available at

Jan 1, 1937

By A. M. Riddle

GROWING out of the nation's most colorful era of railroad building, and with the vision of early pioneers who foresaw a great future for the Western Empire, the Colorado Fuel & Iron Corp. set as its objectives The establishment and building of colonies, towns, schools; industries such as coal mining, iron making and manufacturing works; canals and roads. This was the beginning of CF&I in the year 1872, and from this small western beginning has grown a company that has achieved national importance, ranking ninth in size in steel producing capacity, with over 22,000 employees and operating 14 plants in strategic locations throughout the United States.

Jan 11, 1953

By P. L. Allsman

A method of analyzing blasting action indicates that major cost savings are possible by revising practice and bringing the classical blasting formulas up to date; difficult problems such as taconite and throw-breakup can be attacked by engineering Denonation pressure — the peak pressure developed by the explosive reaction; "shatter blasting." Average detonation pressure — the average pressure over the time the reaction continues; "heave blasting." Radial presswe — the stress in a radially expanding sphere about the detonation. Corresponds to the diminishing peak pressure. Lateral stress - the stress in a circumferential direction, induced by outward movement of the rock away from the detonation. Limiting stress or Slim— the rock property at which failure will occur in the case at hand; may be tensile or compressive strength, or combinations. Recent developments in explosives technology, following the advent of nuclear explosions, have led to a rather complete understanding of their action. A survey was made for the purpose of uncovering any knowledge which might be applicable in the mining and quarrying industries, the principal users of explosives. Although no revolutionary techniques have become apparent, much basic data pertaining to blasting — fortunately not classified — have been developed by recent research, from which a good general understanding of the process can be derived. It is hoped this explanation of the scientific principles governing explosive action, together with a proposed analysis of blasting practice, will further the development of mining engineering. NATURE OF THE REACTION: The phenomenon of explosion, termed detonation, is in reality a rather complex chemical reaction, and as such is completely explainable by physical and chemical laws. Detonation is characterized by high temperature and pressure, extreme rapidity — often being complete within one microsecond — and most importantly by formation of a shock pulse which accompanies the reaction zone. As with any chemical reaction, there is a critical value of temperature and pressure below which detonation can not occur; this is termed the "critical point". Whereas an explosive substance will decompose slowly at ordinary temperature, with the formation of gases which readily dissipate; at elevated temperature the reaction is considerably speeded. If pressure is suddenly applied at some point in an explosive medium, adiabatic compression results, and the temperature is locally raised. When the temperature becomes high enough the decomposition will be so rapid that the gaseous products do not have time to dissipate, but contribute to a further build-up of pressure. This, in turn, furthers adiabatic temperature rise over a widening area, and with any heat generated by an exothermic reaction, causes a rapid increase in temperature. Both temperature and pressure are spontaneously built up in this manner until the critical point is reached, resulting in detonation. The values of pressure and temperature necessary to create detonation are established by the unusual nature of the process. If temperature alone is raised above the critical point, without sufficient increase in pressure, deflagration or "low-order detonation" occurs. In the true, or "high-order detonation", the shock pulse resulting from the violent decomposition becomes an integral part of the reaction, and itself aids in increasing the detonation

Jan 1, 1961

By Best W. N.

Discussion of the paper of W. N. BEST, presented at the San Francisco meeting, September, 1915, and printed in Bulletin No. 104, August, 1915, pp. 1527 to 1537. WILLIAM A. WILLIAMS, San Francisco, Cal.-I would like to ask whether .Mr. Best ever had any experience with an oil burner that used neither air nor steam? W. N. BEST, New York, N. Y.-Yes. This type is commonly known as the "mechanical spray burner" and uses oil heated under high pressure to above its vaporizing point. These burners are not as efficient as the atomizing type for the following reasons: 1. They produce a round flame which; as with any other type of burner, must pass over a flat surface. A round flame cannot fit a flat surface. 2. They do not evenly distribute the heat, resulting in localized heat. 3. The outlet through which the fuel passes is very small; so all gravities of oil, especially oil containing sand, cannot be burned. 4. Their construction is such that they must be cleaned frequently, as the residuum in the fuel clogs the burner. 5. The oil opening being small, the capacity of each burner is small, so that many burners must be used in a boiler or furnace. (The fewer burners there are, the more accurately they can be regulated.) In marine boilers, these burners are largely used, because they do not require either steam or air for atomization. However, there are other methods by which this objection to other types can be eliminated, such as by the use of a rotary blower and steam turbine engine, the exhaust front the engine passing into the engine condenser, thus obviating loss of water. Mechanical burners are rarely used in shops. I know of but one power plant using them. With mechanical burners, the fuel must be maintained at a high pressure. On board naval vessels, some mechanical burners demand an oil pressure of from 100 to 6001b. It is advisable to reduce the pressure as much as possible, as fractured pipes or fittings are particularly dangerous, for the heated oil escapes as a vapor. In such cases there is liability of an explosion caused by spontaneous combustion.

Jan 12, 1915

By W. A. Roper

Since 1950, several papers have been published which have described various methods for studying mobility ratio effects. The methods which have been described for studying mobility ratio effects include X-ray shadowgraph techniques, stepwise potentiometric model procedures, stepwise numerical procedures, gelatin model studies and fluid mapper model studies. The purpose of this paper is to describe a procedure for using a resistance network for studying mobility effects. DESCRIPTION OF APPARATUS The basic unit of the experimental model consisted of a network of 840 resistors fastened to a sheet of black Lucite which was mounted on a wooden frame, Fig. 1. The dimensions of the Lucite sheet were 36 X 36 in. The resistors were fastened to the Lucite sheet at mesh points by means of snaps. The mesh points were arranged in a square pattern, 30 X 30 in., spaced at intervals of l1/2 in. The snap fasteners permitted several resistors to be "stacked" in parallel. By adding additional resistors to the basic unit, the specific resistance on each side of the flood front could be varied. The square network of resistors represented one of four symmetrical elements of a five-spot well pattern. The current input was analogous to an injection well and the current output was analogous to a production well." The power supply was essentially a full wave transformer-rectifier system for converting alternating-current into direct-current. The DC voltage could be varied from 41.43 to 290 v in steps of 41.43 v by selecting the proper outlet jacks. The major components of the power supply were: a Triro power transformer, R 11-A; a dual 5Y3 vacuum tube; two gas filled OD-3 tubes; and a Triplett voltmeter, model 227-1, range 0 to 500 DC v. The voltages at the mesh points were determined with a Keithley electrometer, model 210, No. 185, manufactured by Keithley Instruments, Cleveland, Ohio. A Heathkit vacuum tube volt-

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