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By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital write-offs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral property possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulfur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. Present Value of a Mineral Property In essence the present value of a mineral property is a sum of money in today's dollars that future income from the property are worth. It differs from the total anticipated earnings by the amount of the interest that the unrecouped investment could be expected to earn during the period of recoupment. Thus, if one could accurately estimate what a mineral property will earn during its life, after deducting all operating, administrative, capital, interest, and tax charges, the determination of present value would be a relatively simple mathematical calculation. Normally, where the expected life of the mineral property extends beyond 20 or 25 years, the discounted value of earnings beyond this period is relatively small. The petroleum industry generally discounts the annual cash flow of an operation rather than earnings since, for tax-saving purposes, earnings are kept

Jan 1, 1976

By Joseph D. Martinez

"The benefits of modern technology can readily be identified with energy availability. A clear correlation has been established between per-capita energy consumption and the GNP for various nations. The United States is an outstanding example of a nation which has benefited from vast energy reserves. The nation is now challenged, how¬ever, by dwindling reserves and the need to develop new sources consistent with the preservation of environmental quality. The development of new, virtually inexhaustible and environmentally acceptable sources cannot be expected for several decades. Meanwhile, we will have to depend on coal, nuclear energy and/or rigorous conservation measures.The net effect of environmental considerations has been to delay and perhaps ultimately eliminate the nuclear energy option as a national energy alternative. This forces a more positive move toward coal as the next major source of electrical power. Our coal resources are large, but the use and production of coal is also a threat to the environment. Thus, we seem to be moving from one major accessible source to another due to environmental concern only to face the probability that the alternative is also environ¬mentally unacceptable.Controversies revolving about energy choices must be resolved by an analysis of the relative benefits and impacts of these two sources and others. The pattern of changing energy sources is not new. We have moved from wood to coal to oil and gas in the past and must learn to adapt in the future. Rational decisions must be made relative to the utilization of intermediate energy sources pending development of promising future approaches. A collapse of current levels of energy supply could threaten our technological society and the means to develop a new energy base."

Jan 1, 1976

By John E. McCullough

The purpose of this development program is to design and develop a known volume air sampling pump for use in measuring the amount of radio-active material in the atmosphere of an underground uranium mine. The principle nuclear radiation hazard to underground uranium mines comes from the mine atmosphere. Daughter products of 222-radon, namely 214-polonium, 214-lead, 214-bismuth and 214-polonium, are inhaled by the miner, resulting in a relatively high lung cancer rate among these workers.

Jan 1, 1976

By Aarne Kopanen

In recent years, various renovations have been carried out in the production chain of the Outokumpu copper refinirg process. The anode casting shop, which is the final integral production section at the Harjavalta copper smelter built in its original form in 1945, was fourxl unsuitable for technical and capacity demads during longer periods of operation, and a new casting shop was built in 1974. The electrolytic copper refinery of Outokumpu Oy at Pori was built in 1941, and subsequently expanded in two stages. Even with its present limited scale of production it has been fom important to mechanize the main operations. This work was started in 1967 with the design and construction of the starting sheet machine connected with the cathode washing and unloading machine as a combined unit. Mechanized treatment of anodes has gained advantage particularly from the new design of a highly automated anode casting shop. In the further development of the mechanization a stripping machine for, starting sheets was designed and installed, starting operation in 1974.

Jan 1, 1976

By J. B. Cheung

The results of a program to demonstrate the technical feasibility of hydraulic borehole coal mining are presented in this report. The hydraulic borehole method of coal mining involves inserting a hydraulic mining device into a borehole that has been drilled from the surface into the underground coal bed. The borehole mining device issues a jet of water under high pressure, which breaks the coal. These pieces of coal, along with the water, form a slurry, which flows to the base of the borehole where it is pumped to the -surface. Phase I of the program encompassed the design, fabrication and factory-testing of a hydraulic borehole mining device. The program was successfully completed with the field tests being conducted at the Wilkeson-Carbonado Coal Field near Wilkeson, Washington. The technical feasibility of hydraulic borehole coal mining was demonstrated by mining 32 tons of coal at a depth of about 75 ft over a period of 4 hours.

Jan 1, 1976

By Richard L. Gordon

Minerals long have been important commodities in international trade. As an inevitable result, the governments of the world have employed a wide variety of programs that affect the flow of trade. Roughly speaking, we may distinguish between the desire of more developed countries (MDCs) like the United States, western Europe, and Japan to control imports of minerals and the concern of less developed countries (LDCs), like India, about exploiting and exporting their minerals. The terminology used to describe different countries and the classification of specific countries into groups is unsettled and often changing. The poorest countries have been characterized as backward, undeveloped, underdeveloped, and developing. The problem seems to be in selecting a term that is both accurate and polite. Less developed seems, for reasons outlined by Hagen [pp. 51-57], the most convenient term. The borderline between an LDC and an MDC is always open to dispute. Objective measures are difficult to develop because of deficiencies in basic data, and enormous conceptual problems arise in making valid comparisons from even good data [see Hagen, pp. 7-28]. Thus, policies of the MDCs can be evaluated chiefly by using a few basic arguments for protectionist attitudes towards international trade. In dealing with the LDCs, a more far-ranging evaluation that covers general economic policy goals, the role of foreign investment, and the indirect effects of trade is required. This duality breaks down when trying to deal with the depressed areas in an MDC; here the issues are more akin to those associated with problems in an LDC. Similarly, variants of arguments used in LDCs appear in debates about foreign investments in MDCs. The whole discussion of minerals in LDCs, moreover, has obvious implications for MDCs like Canada and Australia. They, too, must face problems about the best utilization of their resources. THE RESTRICTION OF MINERAL TRADE BY DEVELOPED COUNTRIES[a] At least to some extent, the world's leading industrial nations have intervened to control the inflow of minerals. Such regulation is particularly pronounced for energy. Both the United States and western Europe employ

Jan 1, 1976

By P. C. Seligmann

Primary fracture from an array of shotholes by c. M. LOWNDS. B.Sc. Hons. (Rhodes). Ph.D. (Cape) (Visitor) and P. C. SELIGMANN. B.Sc. (Witwatersrand) (Visitor) The effects of stress on the directions of cracks that are propagating in a brittle medium are described. It is shown that the superimposition of stress fields from the holes of an array always adversely affects fragmentation. Consequently, the best fragmentation will result when holes are fired far enough apart in space or time for each to develop its whole crack pattern without disturbance from the others. This concept leads to a philosophy for the design of more effective blasting patterns, which has been verified on model scale and which explains many published, empirical results.

Jan 1, 1976

By Raymond M. Stateham

The Bureau of Mines evaluated temperature increases on the heads of resin-grouted bolts as indicators of the integrity of the anchoring of the bolt. Expected increases were calculated by the finite difference method; the calculations were checked by bolthead temperature measurements, both in the laboratory and in the field. The accuracy of the calculations varies with the validity of assumptions necessary to the process. Measurements in the laboratory produced a temperature rise of about 4.00 F on the head of a 4-foot bolt when installed with a full column of resin. This increase remained for about 30 minutes. Similar increases were noted on bolts installed at the White Pine mine, White Pine, Mich., but bolthead temperature increases in the mine lasted only about 10 to 15 minutes. When partial columns (reduced amounts) were used, the temperature increases were smaller.

Jan 1, 1976

The value of U.S. mineral raw material output reached a record $63.1 billion in 1975. This high exceeded the 1974 value of $55.2 billion by 14 percent. Among the three major mineral categories -fuels, metals, and nonmetals -only fuels showed an increase in value. Both the metal and nonmetal categories showed declines in value. The significance of this nearly $63 billion mineral output can be noted in the fact that it is the basis for the subsequent production of over $270 billion a year in energy and processed materials. Of the 78 individual mineral commodities included in these 1975 totals, only 17 registered gains in output, while 45 registered value increases, reflecting higher prices.

Jan 1, 1976

By John A. Breslin

Size distributions and concentrations of particulates emitted from diesel engine exhausts were measured with cascade impactors. Samples were taken from the exhaust of two types of engines using three types of fuel and operating under five different engine speed and load conditions. The measured mass median diameters of the diesel particulates were typically about 0.3 um. There was no significant difference in mass median diameter between engines or fuels and only a slight dependence on operating mode. Concentration measurements ranged from 14.2 to 250.9 mg/cu m, and calculated mass outputs, from 64 to 10,000 mg/min. Significant differences in mass output were found between engines, fuels, and especially between different operating modes. The quantity of clean dilution air that would be required to reduce the particulate mass concentration below the 2.0 mg/cu m respirable dust standard for coal mines was greater than the dilution air required to meet the standards for noxious gases for both engines tested.

Jan 1, 1976

By Eric E. Ungar

Some fundamental facts regarding noise are summarized. Guidelines for reducing plant noise are indicated, and simple means are discussed for determining, whether quieting of specific equipment items will reduce plant noise significantly. Design and installation recommendations are made for quieting chutes by means of dams, impact cushioning pads, impact shields, and damping materials, and for quieting; screens by means of resilient decks, lined screen bottoms, drive mechanism enclosures, and side plate additions. A brief account is appended of the wear and productivity performance of resilient materials observed in three cleaning plants.

Jan 1, 1976

By D. R. Pyke

Many of the gold deposits in the Timmins• area show a close spatial association to ultramafic metavolcanics. Available analytical data suggest that ultramafic rocks contain significantly higher gold contents than other major rock types. In addition, recent analyses by Keays (1975) suggest that talc-carbonate alteration of ultramafic rocks releases significant quantities of gold. It is proposed that the ultramafic volcanics formed the principal source of gold for the deposits in Timmins, and that the gold was derived from the ultramafic flows when they were extensively carbonatized. Carbonatization of the ultramafic rocks and emplacement of the auriferous quartz-carbonate veins was probably coincident with the last major period of deformation in the gold camp. Delineation of hitherto unrecognized ultramafic volcanics could be an important guide to the discovery of further gold deposits.

Jan 1, 1976

I reached New York at the start of my second South American adventure on Jan. 9, 1916. In the Anaconda office I found that we were not to take the steamer for two weeks which gave me time to study reports on Potrerillos and Corocoro. Reno Sales, whom I had met in Butte only casually, was to go with us to South America. Though he was only a little older than I, he was already an unquestioned leader of our profession, and we became and remained good friends. William Braden was in New York and would return to Santiago with us. Tom Hamilton would also be returning from a vacation. Leighton Stewart, a young engineer who was to work for Braden, was going on the steamer with us, taking along his wife. And of course Dr. Ricketts would go along. He had just become engaged to John Greenway's half sister, Kate Greenway, and in order not to be away from her longer than was necessary, he did not reach New York until a day before we sailed. This made eight of us who would be in the party. We were to go to Corocoro first, as Braden had taken an option on the Chilean company there. Development was already under way. As reports came in by mail we tried to get as good an idea of the property as we could before the actual examination. Mr. Thayer "put us up" at India House, one of the best lunch clubs in New York, and Reno and I ate our lunches there almost every day. Thayer, Braden, and Cornelius Kelley, who was to succeed Mr. Ryan as president of Anaconda, joined us when they could. At the lunches they told us about the under- ground war in Butte a few years earlier. When I wrote my chapter on the Butte wars in Romantic Copper more than 15 years later I could not help being biased a bit by my friends, all of whom were on the Anaconda side. But their opponents in the Clark and Heinze camp were just as biased in their comments on my book.

Jan 1, 1976

By J. J. Taber

This is the final report on Grant No. G0144067. The report presents the results of a number of laboratory studies carried cut in several different ways to determine the effectiveness of foam for blocking the flow of gas in coal. The effectiveness; (of foam for retarding or blocking the flow gas in various porous media has been observed by many investigators1-4 but we are not aware of similar detailed studies in coal. Because of the diversity of our experiments, the key findings and general conclusions are presented very briefly in Section II. As a convenience to the reader a complete table of cements is included to enable the reader to find those experiments and studies of greatest interest.

Jan 1, 1976

By Martin Hertzberg

The concept of limit burning velocities is used to formulate a quantitative theory of flammability limits. Competing processes dissipate power from a combustion wave and quench propagation at some characteristically low limit velocity. There are four competing processes and one complication: (a) Free, buoyant convection, (b) conductive-convective wall losses, (c) radiation, (d) selective, diffusional demixing (the complication), and (e) flow gradient effects (flame stretch). These complexities are unraveled by creating an idealization that is initially freed from these competing processes. The ideal serves as a standard, and its burning velocity (Su), ideal is a unique function of the initial thermodynamic variables of state. By adding each process individually, it is possible to evaluate their significance, quantitatively, in terms of a limit velocity (Su)a , b , c , or e , and to explore the nature of their cooperative interactions. The larger the limit velocity, the more significant the process. The apparently diverse observations of flammability behavior are readily unified within this simple, conceptual framework.

Jan 1, 1976

By Whitmell J. Smithwick

Lime is one of the most extensively used chemicals in industry. Other than sulfuric acid, it is used in greater quantities than any other man-made industrial chemical. In 1974 there were 20,368,000 tons of lime used in the United States, which amounts to approximately 190 pounds for each man, woman and child in our nation. Lime also is perhaps the most diversely used of any industrial chemical. It is used in such areas as pharmaceutical, chemical, steel making, glass making, production of copper and aluminum, sugar refining, agriculture, construction, ecological endeavors, potable water treatment and sanitation. Figure I lists the major uses of lime for 1974, which is the latest year for which this data is available. The impact of the use of lime for ecological reasons did not show up to any appreciable extent in 1974, but we expect this to be a significant factor within the next few years. Fortunately, in the United States and also in most of the world, there are many deposits of high quality limestone available for the production of hood quality lime. For this discussion, we will assure that a limestone of a suitable quality and size consist will be available in a storage bin or stockpile near the kiln. Quality requirements for the lime product will be covered. We also will give a brief description of the three most popular types of lime calcining systems, how they function, and expected lime product quality from each of these. Commercial fuels and major accessory equipment will be discussed briefly.

Jan 1, 1976

If it had not been for the almost unbelievable adventures that came before and after, the last ten months of 19 15 would have been exciting enough for anyone. As it was they were a cheerful interlude. I spent most of the time on our Warren operations catching up on a lot of underground work and visiting Ajo every few weeks to see if my Chuquicamata visit might help solve the New Cornelia problem. While the difficulties were finally solved, at times they seemed almost hopeless. About all I could do to help was to make sure that the ore sent to the pilot plants represented the average ore that must be treated in the final 5000 tpd mill. Dr. Ricketts and John Greenway worked tirelessly with the best consulting advice they could obtain. Credit for the final success was due chiefly to their efforts. Since our old group had given up its "Merry Widow" home in Warren, a few of us got rooms in the company-built Cole Building over the Warren grocery store. This included Jim Lewis, Roy Mitchell, Steve Landon, Paul Stevens, and Hubert d'Autremont who came from Duluth to join our legal staff. Later we rented a small house two blocks from the Calumet and Arizona office. With the now flourishing country club only a 10-min walk away, and an electric car running to it every half hour or so, we were able to give parties in return for the hospitality of our friends. One of the most pleasant episodes came by luck a few days after I got back from Chile. Chester Congdon, a leading director in Calumet and Arizona, with his wife and their daughters, Elizabeth and Helen, spent a couple of days at the Greenway house before making an auto- mobile trip across the desert from Tucson to Ajo. At the same time I arranged to examine the small but rich Bush and Baxter copper mine a few miles from Tucson. At a party in Warren we found we would all be staying at the Santa Rita Hotel in Tucson, and I took my South

Jan 1, 1976

By William C. Cooley

A review was made of two Russian books and a chapter from a third book dealing with pipeline transport of coal. Emphasis was placed on hydrotransport of coarse coal in underground mines or surface pipelines. The books reviewed were: "Means of Increasing the Effectiveness of Hydrotransport," by V. N. Pokrovskaya (1972), "Parameters and Modes of Hydraulic Transport of Coal" by V. V. Traynis (1970), and the chapter "Calculations of Hydrotransport of Useful Minerals and Waste Rock" from the book "Hydromechanization of Opencast Workings" by G. A. Nurok (1970). All three are unique and useful additions to the world literature on hydrotransport. The Traynis book reveals the development and results of circular wheel stand tests to simulate hydrotransport in horizontal pipes, which is a potentially outstanding contribution to slurry pipeline technology. Graphical data and equations are presented which suggest that headlosses for coarse coal can be predicted with good accuracy for pipe sizes up to 14 inches in diameter. Wheel stands permit tests for pipe wear and lump degradation without recycling coal through pumps. Recommendations are made for wheel stand tests and for correlation of existing data.

Jan 1, 1976

Most mineral products exported from Australia to Japan, with the notable exception of coal, are purchased with weight and quality determined on discharge. Sampling of imported minerals for purpose of payment is done at facilities owned and operated by the purchaser. The selling shipper is represented at the weighing, sampling and testing by an independent inspection group who supervises the whole procedure. Sampling and testing are done within the provisions of the contract between the two parties, and normally in accordance with the relevant Japanese Industrial Standards (JIS). These JIS specify such things as the number and mass of increments to be taken; the practice of taking these increments; the method of determination of moisture, size distribution and quality. The JIS concerned with sampling however, are meant to be basic guides rather than rigid rules. Hence sampling and testing practice varies from plant to plant. In general Japanese sampling facilities and methods are elaborate and efficient. Opportunity is given for the discussion of varying technical viewpoints between consumer and shipper. However the resolution of differences and the implementation of changes normally takes a long time. Such discussions seem best reduced by prior contract agreement on reasonable specifications and detailed testing methods. The independent inspectors

Jan 1, 1976

By Dennis J. Callaghan

This report is the result of information obtained from a review of related literature, personal inquiry and on-site examination of active surface coal mining operations. Four improved surface coal mine systems are described in detail and evaluated for feasibility, implementation requirements, environmental benefit and costs. Engineering feasibility emphasizes equipment availability, compliance to design requirements, practicality and industry rating. Implementation potential emphasizes immediacy, ease, acceptability and constraints. Special attention was given to environmental responsiveness, both with regard to the solutions to mined-land reclamation problems and to the concurrency of reclamation. Each system description includes a hypothetical model mine with a depreciation schedule, capital summary, estimated annual production costs, sales price computation, production and operating cost summary, and a sensitivity analysis of mine price to stripping ratio. A program plan and time schedule for demonstrating a selected mining system covers site selection criteria, mine data collection, criteria for controlling and budgeting costs and reporting findings. Ten additional mining methods and techniques are briefly described and evaluated. Common reclamation problems are listed and described. Sixteen state reclamation laws and regulations are abstracted. Sixty-nine references are listed in the bibliography.

Jan 1, 1976