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By H. Shaw

IT is now generally recognized that the gravitational method of geophysical surveying is a valuable aid in elucidating the geological structure of the subsoil and enables the practical geologist to deduce the presence of useful deposits. The particular suitability of the torsion balance to the location of large and important subterranean structures has given rise to a wide application of this method by many of the important oil companies in their search for future supplies, and so intense have been these efforts that little has been heard of the method in other connections, with the exception of occasional references to its application in the location of hidden deposits of metallic ores, salt and lignite, and a number of accounts of its use in the elucidation of geological structures. Its success in the location of salt domes is well known, and establishes it as one of the most important of the geophysical methods, especially for the indirect location of oil. In the British Isles, however, no large occurrence of oil is likely to be revealed, and here the practical application of the gravitational method has been restricted almost entirely to the search for ores. This type of survey possesses well marked characteristics, and presents a gravitational problem that has necessitated the development of a special and probably unusual plan of campaign, full details of which it is hoped will shortly be published. The problems and difficulties encountered in this work are of necessity fundamentally related to those met with in the search for oil by means of the torsion balance, but they also possess several special and distinctive features which undoubtedly differentiate them from the obstacles confronting the oil prospector, and which call for special consideration and treatment.

Jan 1, 1928

By Darwin Soler

This chapter will outline the operating procedures at Freeport Kaolin Co.5 kaolin mining operations in Georgia, with emphasis on explaining new techniques recently introduced to reclaim mined-out areas for reforestation. Kaolin is found in the central Georgia area (See Fig. 1) in lenticular, sedimentary deposits of high purity. The beds are Cretaceous in age and vary from 4 to 60 ft in thickness, under a cover of sedimentary overburden ranging from 5 to 150 ft. The kaolin beds contain the mineral kaolinite (a hydrous aluminum silicate) and have a particle-size distribution ranging from about 20µ to the submicron level and averaging about 60% below 2µ. The only contaminants in the deposits are coarse mica, quartz particles, and minor amounts of iron and titanium oxides. These kaolin deposits vary widely in quality from deposit to deposit and also vary within individual deposits. Some of the controlling quality specifications which are determined during exploration are viscosity in water suspension, optical brightness index as measured by reflectance, amenability to bleaching, and particle-size distribution. For this reason, only a small portion of the total kaolin reserves in the Georgia belt are suitable for wet processing for the present markets being served. Kaolin clays are selectively mined by different mechanical methods and are beneficiated by both wet and dry processing to produce a number of products used as fillers and coatings in the paper industry; fillers or additives in the paint, plastic, and rubber industries; and as basic raw materials for the ceramic industry. The State of Georgia is the largest kaolin producer in the United States, with 3,206,454 tons produced in 1966, according to U.S. Bureau of Mines statistics. Freeport Kaolin Co’s processing plant is located in Gordon, Ga., about 20 miles east of Macon, Ga.

Jan 1, 1969

By H. Shaw

IT is now generally recognized that the gravitational method of geophysical surveying is a valuable aid in elucidating the geological structure of the subsoil and enables the practical geologist to deduce the presence of useful deposits. The particular suitability of the torsion balance to the location of large and important subterranean structures has given rise to a wide application of this method by many of the important oil companies in their search for future supplies, and so intense have been these efforts that little has been heard of the method in other connections, with the exception of occasional references to its application in the location of hidden deposits of metallic ores, salt and lignite, and a number of accounts of its use in the elucidation of geological structures. Its success in the location of salt domes is well known, and establishes it as one of the most important of the geophysical methods, especially for the indirect location of oil. In the British Isles, however, no large occurrence of oil is likely to be revealed, and here the practical application of the gravitational method has been restricted almost entirely to the search for ores. This type of survey possesses well marked characteristics, and presents a gravitational problem that has necessitated the development of a special and probably unusual plan of campaign, full details of which it is hoped will shortly be published. The problems and difficulties encountered in this work are of necessity fundamentally related to those met with in the search for oil by means of the torsion balance, but they also possess several special and distinctive features which undoubtedly differentiate them from the obstacles confronting the oil prospector, and which call for special consideration and treatment.

Jan 1, 1928

By Barry K. McMahon

The fundamental problem in rock mechanics is accounting for the discontinuous and anisotropic nature of the jointed rock mass. It is this problem that makes rock mechanics distinct from the mechanics of steel, glass, or concrete. Existing mathematical models explain much of the behavior of rock cores in the laboratory but, in civil engineering at least, the rocks that matter are the ones that are already broken. On the other hand, the basically descriptive methods now used in engineering geology do not lend themselves easily to mathematical analysis. A set of indices of geological properties related to the strength and deformation characteristics of jointed rock is needed. Like the index properties used in soil mechanics these will probably not have precise mathematical meaning, but once correlations are established with large scale tests they can form a basis for the transfer of test results, obtained in one area under one set of conditions, to the prediction of rock behavior in another area under another set of conditions. Indices of rock properties are even more important in rock mechanics than in soil mechanics as the cost of testing is much higher. To be useful, these indices must be easily and quickly measured and give reproducible results when measurements are made by different people. In this paper the word "joint" means all naturally occurring rock fractures with less than 3 in. of clay or other soft coating material. EXISTING INDICES OF ROCK PROPERTIES A comprehensive review of indices of rock properties for intact rock is given by Deere and Miller.' They provide charts ". . . for estimating the strength or modulus properties for intact rock from the numerical indices obtained by either the Schmidt hammer, the Shore Scleroscope,

Jan 1, 1968

By K. Thirumalai

Although the term "spalling" has long been known, Norton l first referred to its usage for the fracture or disintegration of materials subjected to rapid temperature changes. Spalling of ceramic materials at high temperatures has received attention in the past.2-4 Removal of the char formed during ablation in reentry of space vehicles has been referred to as mechanical spalling.5 The first experiments to evaluate the process of rock fragmentation by thermal spalling were conducted by Stoces6 using a series of gasoline burners on the quartz veins of the Zinnwald deep mines in Germany. After the development of rocket-jet burners, the principles of thermal spalling combined with high fluid momentum found wide practical application in rocks. The well-known jet piercing process for drilling blastholes in taconite and for jet channeling in the quarrying of granite are among the more notable of these application.7 For the purposes of this study, thermal spalling or spallation of rocks is defined as progressive failure caused by thermal stresses induced by a sudden application of heat from a high temperature heat source. Gray observes that the size of the spall is dependent on the pattern of induced thermal stresses before failure. The spallability or the relative susceptibility of rocks to failure by thermal spalling is a complex but potentially useful parameter for qualitative comparisons. Fundamental differences exist in the degree of spallability among different types of rocks. Accurate prediction of spallability of any particular rock has so far not been possible. Measurement of the state of stress and temperature in the rock during the rapid thermal spalling process poses difficult problems that must be solved. Identifying the parameters that influence the thermal spalling proc-

Jan 1, 1970

By R. S. Archibald

The subject of this paper is particularly appropriate, since Daniel C. Jackling was active in early exploitation of taconites on the Mesabi Range and contributed greatly to their later economic development. After his success in developing the low grade porphyries in the West he looked for more worlds to conquer, and so undertook the concentration of low grade taconites, from which he hoped to produce commercial ore. Mesabi Iron Co., organized in 1919, actually did produce merchantable sinter from taconites in 1922. The enterprise did not prove commercial at the time, as cost of production was high and the surplus of iron ore in the Lake Superior District already contributed to a low market price, but this same property has since been developed by Reserve Mining Co. The work done by Jackling had much to do with the success of this later venture. Iron ore was first discovered on the Marquette Range in Michigan in 1845. The first ore from this range came from the old Jackson mine in Negaunee in 1848. During these early years this property and others on the Marquette produced limited tonnages for transportation to Lower Lakes and for consumption by charcoal furnaces in the area, where a plentiful supply of hardwoods furnished the charcoal for iron smelting. The Marquette and other ranges tributary to Lake Superior did not produce much ore for transportation to Lower Lakes until the locks at Sault Ste. Marie were constructed, but from the time the first lock at the "Soo" was completed in 1855 these ores were transported through the locks to consumer centers in the East. The Marquette Range has a history of continuous production from 1848 to the present day.

Jan 5, 1959

By J. W. Powell

A Federal statute, enacted several years since, provides for the preparation of a geologic map of the United States. There are three requisites for a geologic map. The first is a suitable base- or surface-map upon which the rock-formations may be platted by means of conventions ; the second is a classification of the rocks and formations, and the third is a system of conventions by which the rocks and formations may be represented on the map. When the work of the Federal bureau created to prepare the geologic map was commenced, a topographic survey of the country was undertaken for the purpose of making maps suitable for the use of geologists in the field and for the representation of the geology; and this work has ever since been continued. The surveys have now extended over about one-fifth of the national domain, and are mapped on a series of atlas-sheets, each constituting a section of the great map of the United States. About 700 of these atlas-sheets are completed. They are in extended use among engineers, miners, prospectors, map-publishers and educators, and are thus widely known; moreover, these base-maps have been exhibited, described and discussed at meetings of the Institute, and thus do not require detailed consideration. Classification of Bocks and Formations. Modern classification is designed to express natural relation. In the beginning of observational science, or natural science, objects were discriminated and grouped by differences and resemblances; but at first the differences and resemblances recognized in the classification were external, even superficia1,'and often confined to single features. Later, groups of features and characteristics, both external and internal, were recognized as the basis of classification ; and of recent years, throughout the entire domain of biology, and to a considerable extent in the kindred sciences, classification is based not

Jan 1, 1893

By F. Hass, N. W. Lord

This paper gives the results of experiments conducted in the metallurgical laboratory of the Ohio State University with the objects of determining: First, the calorific powers of a number of coals in general use in Ohio; and second, how far ordinary analytical methods could be used as a basis for computing these values. Incidentally a test of the performance of the calorimeter was involved. The chemical work has been carried on in the department for some time, so that the whole investigation has extended over three or four years. The Mahler calorimeter was purchased from L. Golaz in Paris, and is practically identical with the one described and figured by Mahler in his monograph "Contribution a l'Etude des Combustibles," from the Bulletin de la Société d' Encouragement pour l'lndustrie Nationale. A figure and description is also given by William Kent in The Mineral Industry for 1892, page 97. There were furnished with the instrument three thermometers covering a range of from 7°.5 C. to 31° C. Thermometer "A" (17°.5 to 31°) was carefully calibrated by reading the ends of a thread of mercury in sixteen positions covering the whole scale, supplementing this by readings of longer threads and deducing the errors of scale by the method published by Prof. Holman in the Technology Quarterly of September, 1887. The maximum error of a single reading was found to be 0°.0042 C. Thermometer "B" (13° to 25°) was compared directly with " A " over the scale common to both, and a variation was found of 0°.0145 C. for 7°.5 (or 0°.002 for l°) of the scale. Thermometer " C" ('7°.5 to 19°.0) was omitted from the cornparison, as it was rarely used, being only required where measurements were made at low temperatures. From the

Jan 1, 1898

By Damon H. McFadden

5.1-1. Geographic and Geologic Factors. Surface mines are located where the coal seam can be economically uncovered and where the product can be utilized competitively with other fuels. The planning and designing of a pit may follow various procedures. The sequence for consideration of the influential factors as considered here may not be complete for every pit, nor will it be necessary to be completely used in each design. It is suggested as a check and outline for the engineering approach. Controlling conditions for the layout should be listed and considered with the facilities and equipment for the exploitation. After these items, as listed below, have been discussed and the feasibility agreed upon, then the actual planning and design of the pit can be done. GEOGRAPHIC FEATURES. The location of the coal area sets the climatic stage. The rainfall, the temperature extremes, and the general weather conditions all affect the design of the pit. Overburden soil when wet may not be stackable and may be impossible to move by standard procedures. The coal seam itself may be so soft that it must not be traveled on when wet, as the losses may be the difference between a profitable venture and an unsuccessful one. Some equipment will work well on dry soil only, just as a dredge works only in the wet. The conditions must be checked and analyzed. Some equipment cannot handle frozen soil (wheel excavators), so temperature extremes must be noted. The extreme weather conditions may also govern the expected working days and therefore the ultimate production. The altitude (atmospheric pressure) may affect the equipment, and this should be checked. All of these conditions should be noted on the preliminary map of the area. GEOLOGIC FACTORS. The geologic and surface conditions of the coal field dictate the type of pit generally feasible. Rough terrain, rolling terrain,

Jan 1, 1968

By H. J. Rose

Graphic methods have long been used to advantage in dealing with diverse phases of fuel technology and research. Not only are graphs convenient for presenting data and making calculations, but they are invaluable for deriving generalizations from a mass of data. This is particularly true when relationships are obscure and numerical correlation is poor. This paper describes a new form of graph, the Multibasic Coal Chart, which has been developed to facilitate the study and comparison of coals of all ranks from peat to anthracite on any moisture and purity basis. This type of chart is of unique value for coal classification purposes, since it permits a direct visual comparison of the results obtained when coals are classified by the various systems which have been proposed. Coals are highly variable in character as a result of wide differenees in original vegetal ingredients, degree of metamorphism, and nature and amount of associated impurities. For nearly 100 years, attempts have been made to devise a satisfactory method of classification, and many tables, formulas, ratios and graphs have been suggested. Many of the suggested systems possess considerable merit and have found a limited use, thus promoting a better understanding of coal. However, objections have been raised against each system, and none has received general adoption. When the various systems of classification are compared, it is found that there is an apparently almost hopeless confusion due to: 1. Serious lack of agreement as to the proper moisture and purity basis on which to classify coal. More than ten different bases have been proposed, each of which requires complete recalculat.ion of the analysis data used. 2. Lack of agreement as to what chemical and physical properties are most important and best to use for classification purposes. There is too little knowledge of the degree to which these properties can be correlated.

Jan 1, 1930

By James Douglas

Though liberality is not supposed to be a prominent trait of the Scottish character, Canada owes to a Scotchman, Sir Wm. Macdonald, more than to any other of its people, not only wise ideas, but pecuniary help towards extending education: and another Scotchman, in New York, has sumptuously housed under one roof three branches of the engineering fraternity, of which we are one. Having thus created us members of the same family—for the metaphorical meaning of house and kinship is identical—Mr. Carnegie expresses more emphatically than even he could in words, that, by aff'ording facilities for closest intercourse, he invites the mechanical, electrical and mining engineers to participate in the freest interchange of idea and experience, and to correlate and combine the results of their studies and activities; and, being members of the same household, to banish reserve and secrecy. And now we, the members of the American Institute of Mining Engineers, meet as though we were at home in a neighboring country. For whether we meet in Canada, in England, or elsewhere, the Institute is always received as though no political or geographical divisions separated its members from those of congenial associations in the land of its host. In truth, the title which we have assumed claims for the sphere of our activities the whole American continent, regardless of such trifling details as boundary-lines. The fact that we meet to communicate each other's experience, to discuss our difficulties, and to seek each other's aid in solving the intricate problems that so often present themselves in the course of our professional life, is an acknowledgment of our individual helplessness; and therefore an argument for united effort. But no effort can be of any value if there is an underlying suspicion

Jan 1, 1908

By Nirmal S. Weerasekara, Malcolm S. Powell, Mohsen Yahyaei

"An understanding of the fundamentals of different breakage mechanisms is critical for successfully modelling comminution processes. Due to the high frequency of low energy collisions in the grinding process, superficial breakage has a significant role in size reduction in mills. To develop a scaling up methodology for characterising low energy surface damage behaviour of ores, a series of surface damage tests have been conducted using three grinding mill sizes with diameters of 1.8, 1.2, and 0.8 m. Two types of gold-copper ore with different hardness were used: C-ore and T-ore. All tests were conducted using wet mode to remove the products during grinding. To ensure low energy surface damage was the dominant mechanism, in all tests the mill speed was reduced to 40% of critical speed. A surface damage index normalised with product mass and surface based specific energy is determined from the results enabling a study of the grinding performance regardless of mill size, energy level or charge mass. Incremental breakage tests using the JKRBT indicate that the A×b values of the T-ore were 60% higher than C-ore, suggesting the T-ore is considerably softer. The fractional mass loss rate for the T-ore in the 0.8 m and 1.8 m mills started from 16 and 7 (1/kWh/m2) while for the C-ore it was 4 and 2 (1/kWh/m2). After 6 minutes the surface damage index in all tests tends towards steady state a constant value, an indication of steady state surface damage condition. It has been demonstrated that this methodology can be a useful basis for characterising superficial breakage behaviour of ores."

Jan 1, 2014

By J Vann, S Dunham, M Job

Two-dimensional (2D) estimation approaches have significant advantages over three-dimensional (3D) approaches when dealing with a narrow vein- or layer-like geometry. The main motivation for 2D estimation is that bias due to non-additivity of grade is avoided. The various aspects of 2D estimation are illustrated by use of a case study from the 1A Shoot Nickel deposit at Leinster, Western Australia. The width of the 1A mineralisation is variable, and so are the angles of drilling intersection. Consequently, the variable of interest (in this case nickel grade) is not suitable for direct kriging because it is defined on non-uniform support. However, grade can also be defined as the ratio of two variables that are suitable for direct kriging: thickness and accumulation. In the 2D approach, tonnage equates to thickness and metal equates to the product of grade and thickness, also called æaccumulationÆ. In the simplest approach we can independently krige accumulation and thickness and derive the grade by the ratio of the two resultant estimates. The thickness and accumulation variables must be in a consistent projection orientation, for example a horizontal projection in the case of steeply inclined mineralisation like 1A. Because the density is not constant across the 1A (and most other) deposits, the issue of density weighting is also discussed. The impact of the correlation between grade and length, or grade and density are important issues in implementation of 2D estimation. The circumstances under which these correlations need to be taken into account (by co-kriging) are reviewed. Finally some comments are made on the final use of the resultant 2D estimate for mine planning purposes.

Jan 1, 2003

By W. M. Weigel

"Sand is one of the commonest materials for industrial use, not only as a building material, but in many industrial processes. The general name applies to all grades, from the comparatively impure, unsorted product used in concrete, to especially sized products of extreme chemical purity. Various definitions have been proposed, all more or less open to objection, as they fail to cover special applications. One is: ""Sand - The fine granular material naturally or artificially produced by the disintegration or crushing of rock or slag"". This does not fit the definition of sand as understood by geologists, who consider sand only as a naturally formed product. Another is: ""Sand - The fine granular material naturally produced by the disintegration of rock"". This does not take the chemical com-position into account, and for practically all uses, except in concrete and plaster products, a material composed predominantly of silica or rather quarts is implied.Sand for special purposes usually requires different methods of preparation from those where the ordinary mixture of sizes as naturally occurring are suitable. One of the classes requiring the most uniformly sized grains is sand blast sand.Sand Blast SandThe use of the sand blast has increased rapidly during the past few years. It was formerly used almost entirely in the foundry to clean and remove inequalities from rough castings. This is still the most important application, but in addition, it is now employed for the removal of paint from old surfaces, carving and engraving on stone and marble, glass cutting, cleaning or renovating the rails of stone and brick buildings that have become discolored, preparing the surface of metals for the electrolytic bath, putting the final finish to metal surfaces, and has even been proposed as a means of channeling or cutting out blocks of stone in the quarry."

Jun 1, 1924

By Harold L. Bare, Frank R. Barnako

Coal mining historically has been a hazardous occupation but, in recent years, tremendous progress has been made in reducing accidental coal mine deaths and injuries. The purpose of this chapter is to discuss the basic principles of accident prevention as they are related to coal mining. Accident prevention fundamentals are no different for coal mining than for any other type of work. The fundamentals apply to all industries. Construction workers may be struck by falling tools and materials, and miners may be struck by falling slate and coal. Sailors may be trapped by shipboard fires, and miners may be trapped by mine fires. Railroad brakemen may lose hands and fingers positioning couplers, and miners may lose hands and fingers positioning couplers. Many other examples could be cited, but the point is that accidents that happen in coal mines are basically similar to accidents that happen in other industries. Thus, the basic principles for preventing accidents apply in coal mining as they do in any other type of work. COAL MINE ACCIDENT EXPERIENCE The US Mine Safety and Health Administration (MSHA) is the main source for accident experience data in coal mines. Coal mine operators are required, by law, to forward to MSHA monthly the number of fatal and disabling injuries, man-hours worked, and tons of coal mined. This information is compiled and published quarterly, with annual summaries, by MSHA. Trends in the number of fatalities and fatal injury rates are shown in Fig. 1. Major coal mine disasters, with number of miners killed, and dates of coal mine safety legislation are shown in Table 1. The fatal and disabling injury frequency rates for the coal industry are shown in Fig. 2.

Jan 1, 1981

By C. Musingwini

The South African platinum mining industry is using a number of different mining methods, including variations of the same method, to extract the narrow reef tabular platinum deposits of the Bushveld Complex. These mining methods fall into three broad categories, namely conventional, mechanised and hybrid mining. A question sometimes asked in the industry is whether mechanized mining methods are more efficient than conventional mining methods. An objective answer requires the methods to be evaluated against multiple criteria simultaneously, whereby each criterion has a relative degree of importance in the overall decision. The most efficient method is the one that scores highest on each criterion. However, some of the criteria can be conflicting, such as by increasing dilution the shaft head grade decreases. The analytic hierarchy process (AHP) methodology was selected for the study because it is used to solve problems of this nature. A survey was carried out to determine the relative importance of each efficiency criterion by drawing on the knowledge and experience of mine technical services and project management practitioners in the industry. Efficiency data for four different mining methods drawn from the Egerton (2004) study were used as a case study. The conventional mining method ranked as the most efficient mining method from the four methods considered. The exercise indicates potential for the AHP to be used in the South African platinum mining industry as a tool for selecting optimal layout designs, conduct regular evaluation of the performance of production shafts, or objectively evaluate line managers for promotion. The work described in this paper is part of the methodology used in a current PhD research study at the University of the Witwatersrand. Keywords: Analytic hierarchy process (AHP); multiple criteria decision analysis (MCDA); decision-making; conventional mining, hybrid mining, mechanized mining.

Jan 1, 2008

By C. W. Jr. Gennet

ANNOUNCEMENT was made in the spring of 1926 that the Boston & Maine R. R. Co. had contracted with the well known German steelmakers, Messrs. Fried Krupp, for the manufacture of 15,000 tons of basic open-hearth steel rails at the Rheinhausen Works, for delivery to Boston, Mass. The manufacture of rails in the United States has for many years been almost a national pride, and as this feeling is chiefly the result of a long-time liberal and consistent patronage of, American rails by American railroads, it is not strange that this somewhat unusual announcement should arouse more than ordinary interest. Since the end of the World War, the importation of foreign rail has been fairly large, principally because the newly created economic conditions have rendered some American competition more difficult, but the tonnage imported, for the most part, has been made up of small orders for miscellaneous use; and the contract referred to constitutes the largest single importation of foreign rail in over ten years. In 1915, the Algoma Steel Co. of Sault Ste. Marie, Canada; supplied the Illinois Central R. R. with 30,000 tons of rails,1 and various other American roads with smaller amounts. In 1902, 1903 and 1904, large tonnages of rail from abroad were purchased, the Louisville & Nashville R. R. alone obtaining 30;000 tons from German mills. It is the object of this paper, to present, in what is believed to be a new and concise form, figures showing the production and consumption of rails in the United States, and to record some of the testing and inspection results of the recent Krupp rails; also, to direct attention to two quite unique departures from American practice that were regular features of the Krupp process and which are worthy, it is thought, of careful study.

Jan 1, 1928

ONE of the problems that confronts the chronicler of the Porphyry story is to determine the date from which Morenci should be regarded as one of the group. The mines have the distinction of being the first operated in Arizona for copper. A small smelter was in operation as early as 1873 and in the eighties two smelters accounted for a substantial production ranging from 3,000,000 to 6,000,000 lb. per year. The first concentrator was built in 1886, but the ores were principally oxidized, and direct smelting ore still supplied most of the production. As early as 1893, the mining of somewhat leaner porphyry ores, containing copper in the form of the sulphide mineral, chalcocite, was commenced; but these still were of comparatively high grade and the concentrators were plants of 100 to 400 tons daily capacity. Moreover, the backbone of operations was still the production of rich oxidized ores for direct smelting. They assayed 10 to 15 per cent copper and the sulphide milling ores assayed 3 to 4 per cent. A significant comment appears in the Copper Handbook for 1908. Speaking of the Arizona Copper Co., Ltd., which was to become the most important component of the present Morenci enterprise, the editor, Horace Stevens, says: "A tremendous amount of ore is in sight, ore reserves . . . being estimated at 10,370,600 tons . . . " It seems fair to infer from this that the property was not yet regarded as an immense low-grade mine, but that the copper content of perhaps 70 lb, to the ton made an ore of "medium " grade even according to the standards of the time. Although the concentrating ore was typical of that in the porphyry group of mines (except for its greater richness), no one seems to have the least inclination to take from Utah the

Jan 1, 1933

By Doris M. Hyde

The petroleum sector continued to dominate Ecuador's economic activity in 1978, accounting for nearly 10% of the gross domestic product (GDP) and 42% of total export earnings. In 1978, a more flexible petroleum export price was adopted which permitted an expansion of foreign market opportunities. During 1979, Ecuador took advantage of disruptions in the world petroleum supply and renegotiated existing export contracts to accomodate the rapidly escalating world market price. Petroleum sales on the spot market were maximized, and prices reached unprecedented levels. By taking royalty payments in-kind, Ecuador increased its volume of petroleum available for term and spot sales. Although the volume remained about the same as in 1978, the total value of 1979 petroleum exports increased to about $920 million, reflecting a 76% increase over the $523 million received for 1978 crude oil exports. Concerned about its steadily decreasing petroleum reserves (recently estimated at about 1.1 billion barrels), rapidly increasing and heavily subsidized domestic consumption, and the prospect of having to import substantial amounts of petroleum by 1983, Ecuador announced plane which it anticipates will double reserves within the next 5 years. The Government plans to spend $1 billion over the 5-year period. Plans include drilling 325 exploration and development wells and establishment of a secondary recovery program for the Sachs and shushufindi fields. Some exploration wells are expected to reach a depth of 17,000 feet. It is thought that substantial reserves exist in the southeast Amazon region. Late in 1979, it was announced that some 10 million hectares will be available for exploration tenders-probably in blocks of about 200,000 hectares each-in the Amazon jungle of the Orients and in the coastal and offshore regions. The Government planned to commission a private, independent analysis of Ecuador's petroleum reserves that would also include recommendations on efficient production levels.

Jan 1, 1981

By John Dilworth

THIS paper treats primarily of the valuation of developed coal properties by the method of capitalizing their estimated average future earnings. However, in it reference is also made to valuations of undeveloped coal lands and to various methods of appraisal other than by future earnings. FUNDAMENTAL VALUATION PRINCIPLES Before discussing in detail coal property valuations, a few statements bearing on the general subject will be made to present certain of the writer's views on the question as a whole. 1. A certain property at a given time has but, one true value. This is not universally admitted. The appraiser rather frequently finds that a coal owner has in mind three valuations for his holdings; one, the figure at which he feels they should be appraised for taxation purposes; another, the much higher one that should be used if a loan is to he negotiated on the property; and a third, intermediate between the other two, the price for which he would be willing to dispose of his holdings were they for sale. The last is usually nearest to the true value, and because this is so the statement is generally accepted that the fair value of such a property is the price arrived at by negotiation between a willing seller and a willing buyer who are otherwise disinterested. 2. Notwithstanding the foregoing, it is only very generally and approximately true that the proper measure of the value of a given developed1 coal acreage is the unit or per-acre price for which one or more bodies of similar coal in the salve district have been sold recently. To give a few reasons why such a measure of value can not be strictly applied, it may be noted:

Jan 1, 1927