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By Andrew K. Simpson

What will this deal do to the company’s stock price? This question arises when a publicly traded mining company is presented with a new mine project, or business combination. The standard tool for addressing this question is to use discounted cash flow analysis, or net asset value(NAV), which is discounted cash flow net of liabilities. Cash flow-based analysis is invaluable for assessing project costs and other impacts on debt service capacity and internal rates of return. But cash flow analysis and NAV do not work very well for stock price analysis.

Jan 1, 2000

By Frank H. Madison

The percentage depletion deduction on Federal Income Tax Returns under the provisions of the 1939 Internal Revenue Code and of Sections 611 to Section 615, inclusive, of the revenue act of 1954, have created innumerable administrative difficulties, and a new interpretation of "gross income from the property" in that the Courts have expanded the ideas of what constitutes "gross income from the property" to a degree unheard of and unthought of prior to the enactment of these two codes. Originally, under the Revenue Acts of 1917, 1918, and 1920 depletion was allowable, based upon mine valuations as of March 1, 1913; if the mine was owned prior to March 1, 1913; upon cost, as of the date of acquisition if purchased subsequent to March 1, 1913; and upon a "discovery" basis if the mine was discovered after March 1, 1913, The "jab" for mine valuations as of March 1, 1913 and for discovery valuations and depletion was not as bad as it has been made out to be. Thousands of valuations and estimates of reserves were made and agreed upon between taxpayers and Internal Revenue Service engineers and as the years went on the answers have been found to be "reasonable." However, human nature being what it is each case was a battle of wits - of a sort - and many resulted in severe differences of opinion and litigation. As tax rates increased the situation was not bettered. I could talk for several hours on this phase of depletion but it is all past now andwould not give any real service or better understanding of the matter.

Jan 1, 1958

By John J. Dwyer

As one begins to contemplate the organization of a talk with the title "Iron Ore - The Permanent State of Evolution," the main divisions appear to be the past, the present, and the future. But distaste for repetition of the present production achievements, which scarcely need additional description on this occasion, soon leads one to the conclusion that a more appropriate division of the subject is simply the past and the future . . . with emphasis on the future. We are working in the present, but it can only be understood by what has taken place in the years and decades gone by, and/or under what terms we will have to face the future. Evolution is more often thought of as a steady change - but steady change is really the product of revolutions, sometimes making headlines but often unnoticed at the time. With hindsight, we recognize the great importance of the emergence of the Bessemer converter and the open hearth and the vast influence that both have had on steel making and the changing ore demand. In this country we also see schooners opening the era for lake transportation of iron ore from Michigan to Take Erie. Later, steamships haul the ore from the Mesabi Range to the steel centers of the country. In order to take full advantage of the inland seaway, there had to be revolutions in ship design, loading and unloading facilities and channel and lock development. Full scale utilization of the resources of the Mesabi Range, itself, required parallel upheavals such as the development of new production equipment, and substitution of modern forms of energy for horsepower, and, yes, manpower, as well.

Jan 1, 1968

By James Douglas

For the past several years, inflation has placed increasing pressure on our economic system. The total effect of inflation is complex when combined with other factors which affect the economics of equipment. A mathematical model is described herein which can be programmed on a computer to determine the effect of inflation on economic life and profits after taxes. The computer output results in graphic plots which clearly show the relation of various percentages of inflation to life and profits. Inflation has become a common topic of conversation in the recent past. What is it and how can it be measured? What effect does increased inflation have on equipment policy? Research now in progress at the Construction Institute at Stanford University is beginning to unravel some of the mystery of inflation. As a start, let us answer the first question by defining the word inflation. The dictionary says that inflation is "an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level. It appears, in fact, that we are in an inflationary spiral which is "a continuous rise in prices that is sustained by the tendency of wage increases and cost increases to act on each other." 3 Inflation behaves just like compound interest. It takes more dollars of future years to buy an equal amount of a given commodity, be it a material or a service. Let us assume an annual inflation rate of 5 percent. Assume that 1Associate Professor of Civil Engineering, Stanford University, Stanford, California. 2Webster's Seventh New Collegiate Dictionary, Springfield, Mass., G. and C. Merriam Co., 1969. 3Ibid.

Jan 1, 1972

By Martial P. Corriveau

The preparation of coal is essentially the same for export as it is for the domestic market. The big difference, I would say, is that, while coal for certain domestic uses (utilities, for instance) need not always be of the highest quality, as long as it is uniform, the buyer of coal for export invariably demands a well-prepared, top-quality product. And he is willing to pay for it, as long as he knows what he is buying. This is where quality control enters the picture. The day is long past since the export market was the dumping ground for coals which could not be sold on the domestic market. Today, the export buyer wants American coals not so much for a price but for the necessity of blending the American coals with foreign coals to achieve the desired chemical and/or physical characteristics, To blend intelligently, he must know in detail what are the qualities of the coals to be blended. Sampling and chemical analysis facilities at the piers provide the information on the coals exported, These facilities are maintained for the export buyer by independent laboratories; however, in one instance, the buyer operates his own laboratory. With very few exceptions, and Clinchfield?s Moss No. 3 mid-volatile coal is one, cargoes shipped overseas are loaded as blends of two or more coals. Up to now, foreign requirements have not been too clearly defined; therefore, shippers must be prepared to blend mixtures of the desired combination. Successful blending requires an accurate knowledge of the coals shipped. And this makes it necessary for the coal producer to maintain his own control laboratory.

Jan 1, 1959

By O. W. Kamper

To most of you present here the word "refractories" is not new and you are familiar with the materials and use. To many people though the question is asked, "What are refractoriness and what are they used for?" Refractories are non-metallic products which are so resistant too melting at very high temperatures that they can be used for building or lining furnaces of all kinds. A large variation occurs in the size, form, and composition depending on the service for which they are intended. They are made from a wide variety of raw materials, of which fire clay and quartzite are used in largest quantities. Other refractory raw materials include magnesite, chrome, diaspore, bauxite, kyanite, sillimanite, olivine, zircon, and many others. Most of these are assembled from-widely-'separated points in the United States while others come from the far corners of the earth. Chrome is imported from the Philippines and South Africa, and, to a lesser extent, Turkey and Greece Kyanite and sillimanite come: from India and bauxite from the Guianas. And there's "magnesite from brines," produced in chemical plant's by treatment of sea water or inland deep-well brines with hydrated lime. The proportion of magnesia available in sea water is so small, less than one pound from 500 pounds of water,, that millions of gallons must be pumped and processed each day in a sea water magnesite plant. The realm of refractory raw materials, therefore, is very extensive and continues to grow because of the endeavor to find-better raw materials from which to produce better products for refractory service.

Jan 1, 1960

By W. T. Robertson

My charge is to review briefly "Coal In The Electric Utility Industry - Present and Future." Thus, I will not dwell on the overall energy picture, other than to express what most others involved in the energy picture know - we're in trouble! Several years ago, speaking to another engineering society, I said, "Much has been and yet will be said and written about the energy situation in our Country." What an understatement! The energy question has reached crisis proportions and is a top priority item at the highest level of government, Unfortunately, it will be in that situation for some time to come. Many factors created this complex problem, and we all share some of the blame. But I am perplexed when I read in the popular press that environmental factors are unrelated to the energy crisis when I know this to be untrue. In the recent past all forms of energy have been cast in the role of villain, particularly coal with its problems of surface mining, mine safety, acid water drainage, sulfur content, and a multitude of other adverse factors relating to the environment in one way or another. As you know, the sulfur situation has led to the closing of numerous mines, resulting in the lessening of our mining capacity. Today, along the Eastern Seaboard, 60 to 70 million tons of coal are displaced by imported oil, primarily to meet air standards. Even in the Midwest, utilities sitting on enormous coal reserves are converting to other fuels or hauling low sulfur coal thousands of miles from the western Mountain States. [We will hear more about this coal from another speaker on the program this morning.]

Jan 1, 1973

By Julian Malnic

The nascent marine mining sector appears to be now at a point of critical mass with the prospect of mining seafloor massive sulphide deposits at some time in the coming few years an inevitability. Julian Malnic makes comments from his experience base as an entrepreneur and founder of Nautilus Minerals Inc. in 1995 and will speak from an independent viewpoint of the commercial setting of the status quo of the proto-industry and the major factors likely to have major influence over its future. The presentation questions these factors and the role they will play. Do we need metals from the oceans? Understanding the competing and established terrestrial sources of each commodity is essential in comprehending how a marine competitor can profit. What are the rates of discovery for marine minerals? At what point will marine explorers start to impact the terrestrial copper and zinc exploration sector? The advance of technology is important in finding, imaging and mining SMS deposits, but which new technologies offer the advantage to mining in the ocean and which to mining on the land? Several competitors have now joined Nautilus as competitors to this global pioneer of SMS exploration/production. The membership of the major miners in the marine sector is growing steadily with important relationships developing but many have not put a toe in the water yet. A path of increasing width is opening to commercialization of SMS miners but crusts and nodules, as bearers of copper ? also found in SMS, and nickel ? also found in widespread nickel laterite deposits on land, are unlikely, in this perspective, to be winners this century unless highly valued minor metals are targeted.

Jan 1, 2008

By Raphael G. Kazmann

The predicted warming of the earth's surface, presently the subject of much debate, controversy and legislation, is based on what is termed "the greenhouse effect." This is the result of the property of certain atmospheric gases. These gases allow the passage of radiant energy to the earth's surface and reflect back, to the earth, the infrared radiation given out by the heated surface. Physicists have computed that if there were no greenhouse effect the average temperature of the earth, now about 15° C (60T), would be close to -18° C (OT). Just what gases have produced this salubrious effect? Water vapor is the most important. Then come carbon dioxide, methane and a number of minor constituents of the atmosphere, both natural and man-made. Climate change, its cause and its impact on human activities have been the subject of scientific and historical study for more than a century. Recently, some scientists have concluded that if the man-made increase in the carbon dioxide and other greenhouse gases continues, by the late 21st century the earth's global average temperature will rise between 2° to 8° F. This temperature rise would cause the water in the oceans to expand and the massive polar glaciers to melt. In 1980, it was predicted that the sea level would rise 7.6 m (25 ft) by the late 21st century. By 1985, the predicted rise was 1 m (3 ft); and by 1989, it was 0.3 m (1 ft) (Jastrow, Nierenberg and Seitz, 1990). Agricultural scientists have pointed out that an increase in atmospheric carbon dioxide would enhance biological growth including the production of foodstuffs.

Jan 1, 1992

By Timothy J. Haddon

For the mining industry in general and gold mining in particular, the past few years have been difficult. Economic conditions, coupled with growing regulatory restrictions, have led to increasingly important reasons for managing assets wisely. From a public company perspective, such asset management makes sense because it ultimately provides for an increase in shareholder wealth, and that is why we are in business. Regardless of whether a company is public or not, assets must be managed effectively to remain a player in today's competitive environment. So, as the chief executive officer of a gold mining company, how do we manage our assets to ensure that we are satisfying our obligations to our customer-the Amax Gold shareholder? The gold industry has been under siege. We have just completed the third year with average prices below $12.85/ g ($400/oz). When finding, and/or acquisition costs and development costs to operating costs are added, there isn't much of a profit margin left. What this environment provides, however, is opportunities for growth. In the gold business, you either grow or you die. Today, most North American gold producers have, at most, a 10-year mine life. We are all scrambling to add reserves so we do not become extinct. As prices remain low, opportunities abound for increasing diminishing reserves. This is the time for the opportunistic company to take advantage of market conditions and that is precisely what Amax Gold has done. There are six components to running a successful gold business: • finding reserves through exploration, acquisition or joint venture, • financing the project, • permitting and constructing the project, • operating the project, • cash management and • communication.

Jan 1, 1992

By Valerie Kollonitsch

Functional mineral pigments are used in large quantities in paint, paper, plastics, rubber, textiles, agriculture, and several other industries. U.S. consumption in 1969 is estimated at over 5 million tons a year, valued at nearly $150 million, as shown in Table 1. Originally extender pigments were employed only to lower cost. They were thought of merely as adulterants to replace more expensive prime pigments and binders. However, over the years their role has become better understood, and today their main functions are: - Increasing strength, stability, and service life. - Improving surface properties. - Enhancing application and processing properties. - Extending prime pigments. - Controlling viscosity and package stability - Lowering overall costs of the finished product. The principal minerals used as functional pigments are kaolin, ground calcium carbonate, talc, and asbestos. Other minerals include barytes, attapulgite, diatomite, mica, ground silica, wollastonite, and nepheline syenite. Several synthetic products, including precipitated calcium carbonate; precipitated, gel, and fumed silica; alumina trihydrate; and barium sulfate, compete with mineral products. They are more expensive, but often have more closely controlled particle size or other properties because they can be tailor-made according to the requirements. This paper covers only natural products selling for $10 or more a ton, approximately the lower limit for pigment grades. Data refer only to consumption in pigment applications. For example, such applications as filter aids for diatomite are not included. Key properties of the major mineral pigments are given in Table 2. It is important to note that these properties are primarily physical rather than chemical. In general, these products are sold to performance specifications for what they can do rather than on chemical composition specifications on what they contain.

Jan 1, 1969

By Bruce Kennedy, William Hustrulid

Georgius Agricola in 1556 wrote De Re Metallica, one of the first and probably the most famous of mining reference works. In Book 1 he reflects rather elegantly on mining and miners. "Many persons hold the opinion that the metal industries are fortuitous and that the occupation is one of sordid toil, and altogether a kind of business requiring not so much skill as labour. But as for myself, when I reflect carefully upon its special points one by one, it appears to be far otherwise. For a miner must have the greatest skill in his work, that he may know first of all what mountain or hill, what valley or plain, can be prospected most profitably, or what he should leave alone; moreover, he must understand the veins, stringers, and seams in the rocks. Then he must be thoroughly familiar with the many and varied species of earths, juices, gems, stones, marbles, rocks, metals, and compounds. He must also have a complete knowledge of the method of making all underground works. Lastly, there are the various systems of assaying substances and of preparing them for smelting; and here again there are many altogether diverse methods. ... "Furthermore, there are many arts and sciences of which a miner should not be ignorant. First there is Philosophy, that he may discern the origin, cause, and nature of subterranean things; for then he will be able to dig out the veins easily and advantageously, and to obtain more abundant results from his mining. Secondly, there is Medicine, that he may be able to look after his diggers and other workmen, that they do not meet with those diseases to which they are more liable than work- men in other occupations, or if they do meet with them, that he himself may be able to heal them or may see that the doctors do so. Thirdly follows Astronomy, that he may know the divisions of the heavens and from them judge the direction of the veins. Fourthly, there is the science of Surveying that he may be able to estimate how deep a shaft should be sunk to reach the tunnel which is being driven to it, and to determine the limits and boundaries in these workings, especially in depth. Fifthly, his knowledge of Arithmetical Science should be such that he may calculate the cost to be incurred in the machinery and the working of the mine. Sixthly, his learning must comprise Architecture, that he himself may construct the various machines and timber work required underground, or that he may be able to explain the method of the construction to others. Next, he must have knowledge of Drawing, that he can draw plans of

Jan 1, 1982

JIM ARNOLD: Questions? Comments? Gary, were you gone when I made the comments about corporate puke? [laughter] SPEAKER: You were hiding. BRUCE CAVENDER, BHP Copper: Having worked in both places, I'd like to address the issue of the plant versus the corporate office. One thing to keep in mind is that we are all very engaged with the technical elegance of a lot of the work we do. There's some tremendous technical expertise in the plant. But remember, the guys in the corporate office are only thinking in one denomination, and that's dollars. So we'll see something like a spill, and for us it's a problem. At the end of the day, what the corporation cares about is the financial impact. So we've got to be careful to couch our solutions in dollar terms. JIM ARNOLD: Rebuttal? [laughter] DOUG HALBE: Are you going to rebut this one, Andy? ANDY CARTER, Oxidor Gold Corporation: No, I don't think so. I'm not up to it. I'd just like to address a question both to our panel and the floor. Those of us who've been in this industry any length of time have seen these same mistakes made over and over again. Wherever you go, year after year, plant after plant, you see the same problems. I guarantee you, Doug, that if we have a similar conference down the road, you're going to see the same thing. My question to the panel and to the floor is what is it about our industry that stops us from learning from our mistakes? What characteristic is it that prevents us from learning and makes us repeat the same mistakes over and over again? DOUG HALBE: That's a great question. Someone said in a meeting 10 years ago that if the people who design plants designed airplanes, the planes would be falling out of the air all the time. GARY SIMMONS, Newmont Gold Company: I've got an answer to your question as to why many plants are poorly designed. It's that the minute anybody demonstrates any sort of competence in plant design, they're promoted to a higher-paying job, and the talent pool is left with people of lesser experience. Just think about it: The people who have the experience and have demonstrated it more than once have moved up. JIM ARNOLD: I think that there's another reason, too. Seven or eight years ago I was chairing a session, and I challenged everyone in the session to some day publish an article about the design mistakes they'd made because we never talk about our mistakes. I'll

Jan 1, 1998

By Stefan Mede

Robot Supported Moulding—this is the name of Herrenknecht Formwork’s entry to the world of automated segment production. What had been considered impossible for a long time, has been achieved by Herrenknecht experts together with the Swiss company Marti AG: unmanned segment production on the working line. The moulds open and close autonomously with the help of a hydraulic system. A robot cleans and greases the moulds at one work station and inserts the injection sockets at another. The next step will include further automation and digital networking of all processes from production to installation in the tunnel.

Jun 13, 2021

By Phillip J. Maddex

After the presentation of a co-authored paper, "The Cost of Transporting Ores and Raw Materials in World Markets", at the February SME meeting, one questioner commented, "You have been talking about the large shipper and ship loads. What does the small shipper do?" This paper will attempt to answer that question, at least in part. Probably the questioner hoped to hear about specific new tools and new techniques that he could apply. But one paper could only scratch the surface of the vast fund of information available; so rather than talk specifics we should take basics, that is, people, management and technology.

Jan 1, 1967

By Adam Bedell, Jack Raymer, Brad Crenshaw

Tunnel contracts often include provisions for pre-excavation probing and grouting for areas ahead of the tunnel heading. If grouting triggers are met, tunneling stops, and grouting is performed. There is substantial variation within the underground industry on what criteria are applied to the grout verification hole that is drilled post-grouting and before excavation resumes. The criteria for determination of the effectiveness should be dependent on the geology and local hydrogeologic conditions. The purpose of this paper is to present specific criteria that can be used by a practitioner to determine whether tunneling can resume or if additional grouting is required.

Dec 1, 2022

By Mark L. Munsell

In recent years, miners have tried many approaches to maintenance such as: - Highly sophisticated computerized programs. - large planning groups designed to preplan and schedule work. - Contract maintenance. - Break down maintenance. Each of these approaches has faced the added constraints: - High replacement cost of equipment necessitating longer useful equipment life - management?s increased scrutiny of all indirect costs such as maintenance. Faced with these factors, what system of maintenance control is right? After visiting many properties recently, it appears there is no right system. Maintenance programs need to be tailored to the people and production constraints that occur at an individual property.

Jan 1, 1976

By F. W. DeVries

The preoccupation with cyanide as an environmental issue has been described as virtually an obsession for state and federal agencies enacting regulations for environmental protection. This seems likely to continue in legislative planning, as well. This is despite the fact that the only significant group of cyanide-related incidents has been the bird-mortality occurrences, predominantly in arid areas, and these have been greatly reduced by a concerted effort by operators. What follows is a brief list of areas for which the industry may need either additional information or plans for defensive strategies over the next two to five years.

Jan 1, 1991

Joy Mining Machinery has developed a new generation of ultra-heavy shields for Anglo Coal Australia?s Moranbah North Mine in the Bowen Basin region of Queensland. These are the largest two-leg longwall shields yet produced by Joy. The longwall at Moranbah North posed a number of challenges, among them a thick, inclined, sometimes undulating seam with increasing depths. The result of this was the need for larger, heavier, more powerful roof supports. Knowing that future longwalls would be going deeper, mine management determined that shield yield ratings of at least 1,750 t (1,930 st) was what would be required.

Jan 1, 2011

By K. R. McGinnis

A major cost to a mining company is funding of an exploration program. It is a necessary cost to insure the company's future. But if the exploration effort does not discover an economic are body, there is no return on investment and the days of the company are numbered. However, if you are aware of what exploration geologists are saying, it places the exploration process in a different light. Basically they are saying that ore bodies exist that contain 250,000 tons or less of gold and silver bearing ore that is cyanide amenable utilizing heap leach technology.

Jan 1, 1988