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By Kefton H. Teague

This paper deals with the practical application of the Dutch State Mines cyclone separator for fine-coal cleaning. The more important operating variables are discussed, and results of a number of continuous-scale tests on various fine coals with a 6-in. cyclone separator are given. Descriptions of the Cyanamid Pilot Plant and the 50 tph Cyclone Separator Plant at the Emma Washery in Holland are included.

Jan 1, 1950

By K. A. Pauly

(Wilkes-Barre Meeting, June, 1911.) COMPRESSED air has been and is still very extensively used in connection with mining-operations, but its application in the past has been almost entirely confined to supplying power to underground machinery. Its introduction was due to the difficulty of taking care of the steam which is exhausted underground, rather than to any advantage in efficiency to be gained by its use. The ease with which electric power may be carried to the remotest parts of the mine and the high efficiency of the electric motor have long been appreciated by mine-operators, and electric power is now extensively used underground in the more recent developments, while many of the compressed-air engines in the older workings are being rapidly replaced by electric motors. Recently, however, it has been suggested to use compressed air for driving the large shaft-hoists, the air for the engines being supplied by electrically-driven compressors, and an installation of this character is being erected at Butte; Mont. It is the object of this paper to compare the compressed-air system of hoisting with the various electrical systems, from the stand-points of first-cost and cost of operation. However, before entering into a discussion of the various systems, it will be well to consider briefly the conditions affecting the choice of a system of hoisting in which electricity is the ultimate source of power. The power required by a mine-hoist is extremely intermittent and fluctuates between very wide limits, the all-day average consumption of power not exceeding from 5 to 15 per cent. of the maximum demand during hoisting. The cost of supplying power for such a fluctuating load is necessarily higher than that for supplying an equal amount of

Dec 1, 1911

By O. W. Shimer, D. C. Helms, C. E. Brown

THE early history and progress of anthracite stripping, from the first known operation at Summit Hill in 1821 through 1917, was covered in 1917 in a paper by J. B. Warriner,1 then chief engineer, now president of the Lehigh Navigation Coal Co., and stripping methods between 1917 and 1931 were the subject of a paper in 1931 by H. H. Otto,2 of the Hudson Coal Company. The present paper is confined to methods used today on pitching beds in the western middle and southern anthracite fields. The anthracite industry, not unlike other large industries, had been affected for more than a decade by the adverse economic conditions of the country. High development and operating costs and the competition of other fuels caused some collieries to be closed temporarily, while others were permanently abandoned. In order to obtain a larger tonnage at a lower development cost, a larger stripping program was put into effect by many companies. In 1932, stripping operations accounted for 334 million tons, or 7 per cent of the total anthracite production of the year, and in the next 10 years this increased until more than double that amount, or over 14 per cent of the total production, was from stripping operations. These figures represent the total production of the entire anthracite region; unfortunately, the figures have not been separated from the different fields. There are some operations in the southern and middle western fields where the tonnage obtained from stripping amounts to more than 30 per cent of the total colliery production. Stripping operations on pitching beds present difficult problems. Owing to the various geological formations, a different situation is encountered in nearly every stripping pit; and because of the proximity of an overlying bed, it is very often necessary to load the entire overburden into trucks and haul it out of the pit to the dump area, although back filling and casting is done whenever possible. Beds in the areas described in this paper pitch from 20° to 90° and some are on the invert in, many sharp folds and faults. PLANNING The more successful strippings have had adequate engineering analysis. Some work is being done without much preliminary planning, but many strippings would have failed completely if close supervision by the engineering department had not been maintained. Locations of stripping areas are determined as follows: 1. By constructing cross sections over the areas and drilling sufficient diamond-drill or well drill holes to study the strata and to determine the location, thickness and pitch of the beds.

Jan 1, 1944

By Herbert Clark Hoover, Lou Henry Hoover

GEORGIUS AGRICOLA was not only the author of works on Mining and allied subjects, usually asso ciated with his name, but he also interested himself to some extent in political and religious subjects. For convenience in discussion we may, therefore, divide his writings on the broad lines of (1) works on mining, geology, mineralogy, and allied subjects; (2) works on other subjects, medical, religious, critical, political, and historical. In respect especially to the first division, and partially with regard to the others, we find three principal cases : (a) Works which can be authenticated in European libraries today ; (b) references to editions of these in bibliographies, catalogues, etc., which we have been unable to authenticate ; and (c) references to works either unpublished or lost. The following are the short titles of all of the published works which we have been able to find on the subjects allied to mining, arranged according to their present importance :-De Re Metallica, first edition, 1556; De Natura Fossilium, first edition, 15,46 ; De Ortu et Causis Subterraneorum, first edition, 1546; Bermannus, first edition, 1530 ; Rerum Metallicarum Interpretatio, first edition, 1546; De Mensuris et Ponderibus, first edition, 1533; De Precio Metallorum et Monetis, first edition, 1550 ; De Veteribus et Novis Metallis, first edition, 1546; De Natura eorum quae Effluunt ex Terra, first edition, 1546 ; De Animantibus Subterraneis, first edition, 1549. Of the " lost " or unpublished works, on which there is some evidence, the following are the most important:-De Metallicis et Machinis, De Ortu Metallorum Defensio ad Jacobum Scheckium, De Jure et Legibus Metallicis, De Varia Temperie sive Constitutione Aeris, De Terrae Motu, and Commentariorum, Libri VI. The known published works upon other subjects are as follows:-Latin Grammar, first edition, 1520; Two Religious Tracts, first edition, 1522; Galen (Joint Revision of Greek Text), first edition, 1525 ; De Bello adversus Turcam, first edition, 1528 ; De Peste, first edition, 1554. The lost or partially completed works on subjects unrelated to mining, of which some trace has been found, are:-De Medicatis Fontibus, De Putre¬dine solidas Partes, etc., Castigationes in Hippocratem, Typographia Mysnae et Toringiae, De Traditionibus Apostolicis, Oratio de rebus gestis Ernesti et Alberti, Ducum Saxoniae.

Jan 1, 1950

By O. W. Shimer, D. C. Helms, C. E. Brown

The early history and progress of anthracite stripping, from the first known operation at Summit Hill in 1821 through 1917, was covered in 1917 in a paper by J. B. Warriner,1 then chief engineer, now president of the Lehigh Navigation Coal Co., and stripping methods between 1917 and 1931 were the subject of a paper in 1931 by H. H. Otto,2 of the Hudson Coal Company. The present paper is confined to methods used today on pitching beds in the western middle and southern anthracite fields. The anthracite industry, not unlike other large industries, had been affected for more than a decade by the adverse economic conditions of the country. High development and operating costs and the competition of other fuels caused some collieries to be closed temporarily, while others were permanently abandoned. In order to obtain a larger tonnage at a lower development cost, a larger stripping program was put into effect by many companies. In 1932, stripping operations accounted for 3½ million tons, or 7 per cent of the total anthracite production of the year, and in the next 10 years this increased until more than double that amount, or over 14 per cent of the total production, was from stripping operations. These figures represent the total production of the entire anthracite region; unfortunately, the figures have not been separated from the different fields. There are some operations in the southern and middle western fields where the tonnage obtained from stripping amounts to more than 30 per cent of the total colliery production. Stripping operations on pitching beds present difficult problems. Owing to the various geological formations, a different situation is encountered in nearly every stripping pit; and because of the proximity of an overlying bed, it is very often necessary to load the entire overburden into trucks and haul it out of the pit to the dump area, although back filling and casting is done whenever possible. Beds in the areas described in this paper pitch from 20" to 90° and some are on the invert in many sharp folds and faults. Planning The more successful strippings have had adequate engineering analysis. Some work is being done without much preliminary planning, but many strippings would have failed completely if close supervision by the engineering department had not been maintained. Locations of stripping areas are determined as follows: I. By constructing cross sections over the areas and drilling sufficient diamond-drill or well drill holes to study the strata and to determine the location, thickness and pitch of the beds.

Jan 1, 1946

Coal - Surface Mining Coal Preparation Coal Utilization Research and Development Health and Safety

Jan 3, 1976

By O. W. Shimer, D. C. Helms, C. E. Brown

The early history and progress of anthracite stripping, from the first known operation at Summit Hill in 1821 through 1917, was covered in 1917 in a paper by J. B. Warriner,1 then chief engineer, now president of the Lehigh Navigation Coal Co., and stripping methods between 1917 and 1931 were the subject of a paper in 1931 by H. H. Otto,2 of the Hudson Coal Company. . The present paper is confined to methods used today on pitching beds in the western middle and southern anthracite fields. The anthracite industry, not unlike other large industries, had been affected for more than a decade by the adverse economic conditions of the country. High development and operating costs and the competition of other fuels caused some collieries to be closed temporarily, while others were permanently abandoned. In order to obtain a larger tonnage at a lower development cost, a larger stripping program was put into effect by many companies. In 1932, stripping operations accounted for 3½ million tons, or 7 per cent of the total anthracite production of the year, and in the next 10 years this increased until more than double that amount, or over 14 per cent of the total production, was from stripping operations. These figures represent the total production of the entire anthracite region; unfortunately, the figures have not been separated from the different fields. There are some operations in the southern and middle western fields where the tonnage obtained from stripping amounts to more than 30 per cent of the total colliery production. Stripping operations on pitching beds present difficult problems. Owing to the various geological formations, a different situation is encountered in nearly every stripping pit; and because of the proximity of an overlying bed, it is very often necessary to load the entire overburden into trucks and haul it out of the pit to the dump area, although back filling and casting is done whenever possible. Beds in the areas described in this paper pitch from 20" to 90 and some are on the invert in many sharp folds and faults. Planning The more successful strippings have had adequate engineering analysis. Some work is being done without much preliminary planning, but many strippings would have failed completely if close supervision by the engineering department had not been . maintained. Locations of stripping areas are determined as follows: I. By constructing cross sections over the areas and drilling sufficient diamond-drill or well drill holes to study the strata and to determine the location, thickness

Jan 1, 1944

By WILLIAM WATERS

L HISTORY. THE Pierrefitte mines, situated in the South of France, in the district of the Hautes-Pyrenees, owe their name to the fact that the first mining operations of any extent, and of comparatively recent date, were carried out in the neighborhood of the vil¬lage of Pierrefitte, which is a branch terminus of the Midi railway. The Pierrefitte mines, however, embrace a wide extent of country and several different concessions, on most of which comparatively little exploration-work has been done. The portion of the property presently to be described is a zone running roughly E-W., over a distance of about 5 miles from the valley of Cauterets to the valley of Estaing, the ridge dividing these valleys being a spur of the main chain of the Pyrenees, and running more or less at right angles to it. According to local tradition, which various indications tend to confirm, these mines are of ancient date, the first workings being attributed to the Romans, who are supposed to have sought not only the lead but also the silver which is contained in the ore. Old slags have been found in the neighborhood which might well have been produced from the cupellation of lead-ores. These old workings, while of considerable extent at times, do not seem to have extended beyond a depth of 100 ft., even this depth being somewhat exceptional. The old notarial records of the district show that mines were known to exist, and that they were even worked, in the sixteenth century, but since the mines were abandoned (by the Romans or others) considerably prior to this period, very little

Nov 1, 1908

By H. Hubert

THE first attempts at direct utilization of blast-furnace gas in engines were made in 1895. For a considerable time the gas had been burnt in Cowper stoves for heating the blast for the furnace, and under the boilers which supplied steam to the blowing-engines, and others serving the furnaces. It was natural, therefore, that the idea of directly employing it in gas-engines should have occurred simultaneously to several engineers, notably to Lürmann and to Lencauchez, who had pointed out the blast-furnace as a powerful -gas-producer. Nevertheless, nowhere had any attempt been made to apply it to this purpose up to the end of 1894, when Thwaite proposed it to Mr. James Riley, of the Glasgow Iron & Steel Company. About the same time investigations were being made in Belgium and in Germany, independently of Thwaite's experiments, which were not generally known on the Continent. The industrial world, which up to that time had hardly favored the idea, had thus been gradually prepared to receive it. The gas-engine, long restricted to small sizes and dependent upon the use of an expensive fuel obtainable only in large centers, now began to make headway. At the Paris Exhibition of 1889 two engines of 100 h.p. were shown and excited much interest among engineers. One had four cylinders, and was made at the celebrated works of the Deutz Company, and the other was a single-cylinder engine, exhibited by two French designers, Messrs. Delamare-Deboutteville and Malandin. In the meanwhile the design of gas-producers had made important progress, completely freeing the new engine from its

Nov 1, 1906

By ERNEST A. HERSAY

ACCURATE ore-sizing with screens is drawing attention to certain details that now, more than ever before, require attention. There are many tests that must be preceded by careful sizing. The assayer often could profit by a more careful selection of screens. In milling, more attention is given the slimes produced. Cement-manufacturers are pulverizing and screening finer than they formerly did, and others are reducing materials to fine sizes at high cost, with screens used to govern the fine¬ness of the pulverized product. Fine screens are expensive, easily injured by mis-use, are carried in stock sparingly by most dealers, and are handled often by those who know little about them except their designated number. More attention, on the whole, needs be given the actual size of the mesh-openings, and less emphasis placed upon any custom or conventionality in numbering. An effort to classify wire screens, in this respect, leads at once into computations, where one is confronted with details of sizes and standards, of different wires, different gauges, and different customs. There is always uncertainty about the exact working-size of a screen until one gives the matter special attention, and devotes more time to it than its simplicity seems to demand. To know only the number is not sufficient for all uses. Often, in sets, superfluous sizes are used; and sizes are omitted that are of critical importance. In wire screens, the use of different standard sizes of wire makes important differences in dimensions that must be taken into account. The dealer usually grades screens by the number of openings per linear dimensions, regardless of the size of the openings or of the wire. Certain 100-mesh screens in use are found, by measurement, to he actually coarser than others of 90-mesh, a result which is due, of course, to the use of larger

May 1, 1906

By George J. Young

(Cleveland Meeting, October, 1912.) I. GENERAL. THE recurrence of mine-fires in Nevada during the past decade is not only a matter of interest, but also one of considerable concern to engineers and mine-managers. The more important fires may he enumerated as follows: Forman Shaft fire., Gold Hill, April 21, 1903 ; shaft-house, machinery, and shaft, destroyed; loss estimated at $50,000.; Cause Unknown. Union Shaft fire, Virginia City, July 14, 1904; shaft-house, machinery, and shaft in part destroyed; loss estimated it $100,000; cause of fire stated as the careless throwing of a match in the rope-house. Sutro Tunnel fire, Virginia City, Jan. 27, 1909 ; 700 ft. of tunnel-timbering destroyed, and direct damage of $10,000; cause ' probably electric wires." Belcher Shaft fire, Gold Hill, Aug. 9, 1910; shaft-house destroyed, machinery ruined, and upper part of shaft damaged; damage, $25,000; no cause given. Belmont Mine fire, Tonopah, Feb. 23, 1911; fire started in winze ; 17 men killed. Giroux Mine fire, Kimberly, Aug. 23, 1911 ; fire originated iii shaft-station from unknown cause; 7 men killed, and $34,¬521 damage caused. (NOTE 1.-On June 11, 1912, some time after the present paper was written, a fire broke out in the pump-room on the 2475 station of the Ward shaft, Virginia City. This fire was caused by the short-circuiting and exploding of the starting-switch on No. 5 pump. The oil in the switch was scattered about and set fire to the timbers and laming of the pump-room. The pump-roan in charge notified the surface, and the * Professor of Mining and Metallurgy, Mackay School of Mines.

Oct 1, 1912

By C. EDWARD STAFFORD

A Discussion of the paper by Mr. James P. Roe which was read at the Washington meeting, May, 1905. MR. C. EDWARD STAFFORD, Chester, Pa.:-During all my business life, I have been engaged in the manufacture of Bessemer and open-hearth steels, but, during my long connection with the Shoenberger Steel Co. of Pittsburg, I had some experience in the manufacture of high-grade puddled iron for horse-shoes and in the making by Dr. Otto Wuth's process extremely pure low phosphorus puddled blooms (analyzing from 0.005 to 0.01 per cent. of phosphorus and sulphur), which were melted with low-phosphorus pig-iron in acid open-hearth furnaces to make extra locomotive fire-box steel. I have also seen the Dank's puddlers in operation at different times and places, notably where they were most successful, at the Otis Steel Works, Cleveland, Ohio; then under the management of our friend, Mr. S. T. Wellman. These Dank's blooms were made solely for open-hearth melting-stock to which they were well adapted ; the unavoidable presence of bits of ore-fix imbedded in the mass of the, metal always prevents the profitable manufacture of merchant iron from Dank's blooms. With the experience just described, I was to some degree in position to value fairly the means, methods and results of Mr. Roe's mechanical puddling from the metallurgical or technical and economic points of view, when given an opportunity by Mr. Roe to see his puddling furnace or machine in operation in Pottstown, Pa. Briefly, the furnace, with water-cooled bottom, is rectangular in plan, about 20 by 8 ft. in the clear, suspended by trunnions at the middle of the long sides, at a. height of 17 or 18 ft. above the general level; the oscillation (65° each way from the vertical) is accomplished by geared segments (attached to the downward-projecting side or trunnion-plates) with which engage pinions driven by a reversing engine. The whole section

Sep 1, 1905

By P. B. Leavenworth

Development in the Upper Texas Gulf Coast during 1945 resulted in the discovery of 23 new fields; one Miocene, eight Frio, three Cockfield-Yegua and eleven along the Wilcox trend. The Wilcox trend appears to he the most active at this time. Producing depths of the new Wilcox discoveries range from 2050 to 10,050 ft. Drilling along the Frio trend has been, for the greater part, projected to the deeper downdip sands. Eighteen of the new discoveries are classified as oil or condensate and five are gas discoveries.

Jan 1, 1946

By AIME AIME

The following abstract of the minutes of the final Adjourned Annual Business Meeting, held Nov. 12, 1912, in the office of the Institute, 29 West 39th Street, New York City, is here presented for the information of the membership at large. On the announcement by the Secretary that there was a quorum present, President James F. Kemp called the meeting to order. The minutes of the Adjourned Annual Business Meeting of Oct. 7, 1912, were read and approved. (Sec p. xi,Bulletin No. 71, November). Prof. Jos. W. Richards, in behalf of the Special Committee of the Board of Directors and the Council (Messrs. Richards, Kirchhoff, and Rand), withdrew the two proposed amendments to the Constitution offered by the said Committee at the Adjourned Annual Business Meeting of Oct. 7, 1912. (See Bulletin. No. 70, October, 1912, p. vi., and Circular Announcement No. 8, Oct. 15, 1912, p. 15.) Professor Richards presented a syllabus of the proposed amendments to the Constitution and By-Laws prepared by the Special Committee. Several members present discussed various sections of the proposed Constitution, and the Committee advised that the suggestions would he duly considered before submitting the final document, which would be duly presented and sent to the membership at large at least 30 days before the next Annual Business Meeting, Feb. 18, 1913. Professor Richards presented a resolution, seconded by Mr. Kirchhoff, making a change in the present Certificate of Incorporation, so that it would conform to the proposed changes in the Constitution and By-Laws; said resolution was unanimously adopted. Professor Richards presented another amendment to the Constitution, which had been purposely omitted from the printed list, but had been requested by many members, namely, the creation of a " Class of Fellows." This question was freely discussed at the Cleveland meeting (see Bulletin No. 71, November, 1912, p. 1348), and in view of the diversity of opinion it was-decided to present it in separate form for separate action of the membership at large at the Annual Business Meeting, Feb. 18, 1913. In answer to question, the President announced that the proposed amendments to the Constitution and By-Laws presented by Messrs. Corning and Stone at the Adjourned Annual Business Meeting, Oct. 7, 1912, and published in Circular Announcement No. 8, Oct. 15, 1912, were still on record. Professor Richards presented a syllabus of the proposed amendments to the By-Laws, and several sections were discused by members present, but no action of record was taken. Mr. Charles F. Rand read a letter from Mr. L. K. Armstrong, Sec-retary of the Spokane Local Section of the Institute, referring to the proposed amendments to the Constitution, and he announced that many of Mr. Armstrong's suggestions were, in one form or another, already incorporated in the proposed amendments submitted by the Special Committee. A special vote of thanks was passed to Dr. Albert R. Ledoux for the valuable assistance rendered by him to the Special Committee in the preparation of the proposed amendments to the Constitution and By-Laws.

Dec 1, 1912

By James F. Kemp

Jan 1, 1914

By AIME AIME

THE list of deaths reported during the year 1904 comprises the following names (the figures in parentheses indicate the year in which the persons named were elected to membership). Honorary Members.-Sir Lowthian Bell, Dr. Thomas M. Drown. Members and Associates.-Jacob Neff Barr (1884), John Walter Best (1899), A. Poyntz Blandy (1903), A. Cass Canfield (1876), William E. Carroll (1901), William E. C. Coxe (1874), Russell W. Davenport (1877), Isidor Davidov (1893), Louis M. Davis (1884), Edward Doerr (1897), Edward M. Ferguson (1878), C. Le Neve Foster (1893), Geo. Clinton Gardner (1878), Wm. J. Harris (1871), Richard P. Heckscher (1893), H. D. Hoskold (1.894), Wm. S. Hungerford (1882), Edwd. K. Landis, (1882), August Lengemann (1902), Wm. M. Lippitt (1900), Henry McCalley (1888), Robert J. McCartney (1897), Arthur McClellan (1871), Arthur S. Mahony (1888), Philip W. Moen (1888), Henry G. Morse (1881), Charles Parkin (1875), Clarence V. Page (1900), Rubens P. Patterson (1886), Henry Paul (1889), W. H. Pettee (1871), James B. Randol (1879), Irving H. Sevier (1904), Win. J. Sims (1902), John H. Slavens (1901), Chas. B. Squier (1886), Chas. W. Stickney (1891), Homer H. Swaney (1903), Walter B. Wilson (1892), Whittaker Wright, The following paragraphs, constituting the concluding portion of the Annual Report of the Council for 1904, have been withheld from publication until now, in order to make them as accurate and complete as possible. Jacob Neff Barr, a mechanical engineer of note, died on May 5, 1904. Being especially interested in railroad work, he invented the Barr contracting-chill process of casting car-wheels,

Jul 1, 1905

By W. O. Crosby

WASHINGTON CAMP, in Santa Cruz county, Arizona, is a small and little known mining district situated on the lower, eastern slope of the Patagonia mountains, about 20 miles east of Nogales and a like distance south of Patagonia Station on the Sonora railroad, which connects it Benson, 83 miles from Nogales, with the main line of the Southern Pacific. This district is also about 4 miles north of the international boundary, 35 miles west of Bisbee and 40 miles north of Cananea, in Sonora. The topography of the district, which lies at a general elevation of 5,500 ft. above the sea, is only very moderately rugged, and presents no obstacles to mining operations. Although some of the claims of the camp, including the Pride of the West, Belmont and Holland, were extensively worked for silver 25 years ago, they passed, at moderate depths, as in so many other districts, out of the argentiferous lead carbonate and sulphide into zinc, copper and iron sulphides; and for two decades the camp was abandoned and almost forgotten. In recent years, however, its apparent possi¬bilities as a copper producer have led to a revival of mining activity; but not, as yet, with conspicuous success. Although economically relatively unimportant, the deposits of Washington Camp are, mineralogically and structurally, nevertheless, typical examples of ore-bodies developed in connection with the garnet ledge now recognized as a normal feature of granite-limestone contacts; and, in the opinion of the writer, this is an instance where a minor example is yet essentially normal and capable of throwing important light upon the origin and genetic relations of the type.

Nov 1, 1905

By G. C. RIDDELL

THE metallurgist, chemist, and physicist are blazing trails that lead far afield. Pushing on into an "Alloy Age" they see a non-ferrous era over- taking iron and steel. Delving into the nature of the physical world, they break down a supposedly indivisible element, hydrogen. Not content with terrestrial problems, they peer back along the cosmic ray into iaterstellar space, glimpsing forces that are, apparently, still busy with the task of atom-making. Mastering and organizing the material and physical, they advance steadily toward that borderland of science where the concept of matter itself seems abandoned, and force is the substance left.

Jan 1, 1930

By Russell A. Carter

Alaska is a land of immense proportions and resources. Its very name, derived from an Aleut term, means "The Great Land." Yet, in a state slightly larger than Texas, California, and Montana combined, there are presently only two-large scale mines in production, excluding dredge operations. Once referred to by its territorial governor as "a storehouse of minerals," Alaska is, in the opinion of many industry observers, at least 20 years away from a healthy, productive mining industry. The mineral potential of the state is tremendous: coal deposits on the North Slope alone have been hypothetically pegged at 1.5 trillion tons. Copper-zinc deposits on the south flank of the Brooks Range are conservatively estimated to be worth $4 billion to $6 billion. However, the problems facing mineral development are of equal magnitude, and include:

Jan 11, 1976

By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd's Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco's experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco's research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco's strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco's financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960's very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo's Project Development Study was completed. in January 1972. Based upon Toyo's cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo's cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco's planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950's and 1960's. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985