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By A. Kobzhanov, S. Saparova, S. Brochot, D. A. Mango

KATCO (an ORANO Mining and Kazatomprom joint venture) is the largest in-situ leach uranium mining operation in the world, exploiting the Muyunkum and Tortkuduk uranium deposits in southern Kazakhstan. After extraction from the deposits, uranium is then transported via a hydraulic network to be purified in three processing plants located near these deposits. Within KATCO, with the support of ORANO Mining and CASPEO, in 2018 and 2019, a large project that had as its main objective to improve the uranium accounting system was implemented. The objective of this paper is to describe this project and all the changes that it entailed. At KATCO plants, a black-box approach was previously used for uranium accounting. However, it is recommended to use all the available measurements and to deploy a data reconciliation model (between well-fields and plant) as the reconciliation uncertainty is overall lower and it provides a more accurate uranium balance. During the deployment of this project, the rules and algorithms to generate the uranium accounting report, the associated flow diagrams (for uranium accounting), the streams, units of operation, stocks, reporting and Key Performance Indicators calculation rules were re-defined.

Jan 1, 2020

By K. H. March

In the present very highly competitive condition of the bituminous coal business, it is becoming increasingly apparent that coal mines which do not lend themselves to efficient mechanization cannot long survive. It would seem that those mining operations best fitted to survive the struggle for existence are burdened with the considerable capital and maintenance cast of carefully selected mechanical and electrical mining equipment. The ever changing conditions of coal mine operations require equipment which is adaptable to a variety of uses; and investigation of the mechanical and electrical equipment in most mines will show that the operating duty of much of this equipment is considerably different from that duty for which it was originally selected. And it would appear that one of the essential qualifications for a successful mine management is a marked ability to get satisfactory operating results from equipment which has been transferred from some other operation, rebuilt, rearranged, or in some way adapted to the job at hand. As a striking example of such mechanical ingenuity, many of us recall that the first longwall jigging conveyor used in Nova Scotia was built in Sydney Mines from odds and ends in the scrap pile at a total cost of less than $50.

Jan 1, 1930

By N. V. Moraka

Calls for transformation in the mining sector are legislated. Whilst the composition of boards in terms of gender diversity and equal representation has improved, little is known on how women directors experience boardrooms. This research investigated the experiences of South African women in male-dominated mining boards. It questions why women remain marginalised in boardrooms, even when they are qualified as the men in their respective fields. The experiences of South African women on male-dominated mining boards were investigated by means of a multiple case study using a qualitative research methodology. Interviews were conducted with 16 women and 12 men serving across six JSE-listed South African mining companies. The findings show that irrespective of their qualification and experience, women,s, contributions are often ignored, and they are assigned to more social roles. Regardless of race, all women experienced gender stereotyping. Strategies are required to ensure that board cultures embrace female talent, where women can effectively contribute to decision-making and maximize their talent. It is argued that gender and identity should be studied in relation to post-colonial history in African countries. Women have multiple, varying identities, and their experiences require a unique investigation that would enable strategies to overcome barriers, through the implementation of an appropriate diversity management programme.

Feb 12, 2024

The paper deals with the results of dynamic tests carried out on a range of surface support liners consisting of combinations of mesh (various types), shotcrete, and wire rope lacing. The testing was carried out over the period 1993 to 1998. The dynamic testing method made use of drop weight impact loading of test samples which attempted to simulate realistic in situ conditions, and the range of loading imposed was equivalent to small to severe rockburst conditions. The results of the testing provide quantitative data, in the form of input energy, which is relevant for support design and for the choice of support types appropriate for situations in which significant mine-induced seismicity occurs or is expected to occur. In addition to the wire mesh and shotcrete liner systems tested, estimates of energy capacity are made for other, untested, systems.

Jan 1, 2001

By William W. Elmer

This paper, describing the mining method at the Black Butte quicksilver mine, is one of a series of papers being prepared by the U. S. Bureau of Mines on mining practices, methods, and costs in the various districts of the United States. It is presented to show the mining practice and costs in the successful treatment of low-grade quicksilver deposits. The operation discussed is an excellent example of w1-pat can be done in working a limited tonnage of low-grade ore under sound management. The Black Butte mine is situated at Black Butte, Lane County, in the southern part of the State of Oregon, 17-1/2 miles from Cottage Grove -- a station on the Siskiyou branch of the Southern Pacific Co. The Black Butte mining district lies in the foothills of the Calapooia Mountain Range, which connects with the Cascade Range on the east and with the Coast Range on the west. The elevation at '.lie reduction plant is 1,000 feet above sea level. The apex of Black Butte Mountain, or which the mine is situated, has an elevation of 2,700 feet. The district possesses exceptional natural facilities infrequently met with elsewhere for the mining and reduction of cinnabar ores. Several factors which contribute to the unusually low mining costs are:

Jan 1, 1930

By Jack G. Crump

Nuclear radiation systems for gauging solids content in process slurries and level in crushers has demonstrated acceptance in ore processing. The use of nuclear radiation for moisture analysis of bulk materials is presently receiving acceptance in beneficiating and agglomerating processes. On the horizon is the use of nuclear activation methods for continuous, qualatative and quantitative analysis of concentrate. The common characteristics of these uses of radiation is the non-contacting nature of the measurement. Unquestionably, this is the dominant reason for acceptance of nuclear methods in level and slurry-gauging. Moisture activation analysis of a product using nuclear methods retain this advantage. However, and: more importantly, they offer new solutions to old problems. The nuclear method in addition to being non-contacting, is non-destructive and provides a continuous measurement of the process variable. The system responds: to the fundamental makeup of matter, mass and elemental composition, not to secondary properties such as temperature, resistivity, or dielectric constant. Measurement is a volume rather than a surface phenomenon, thus the results can provide a truer pricture of the measured variable.

Jan 1, 1965

By PAUL M. Tyier

NOW that analytical chemistry has gone so far to debunk early misconceptions about minerals, the fact that the light of exact knowledge still fails to illuminate many dark corners is often overlooked. By combining the skills of the physicist with those of a chemist, the identification of minerals has become an exact science and the presence of even minute traces of impurities and extraneous elements is readily revealed by spectrographic means, Granted that we can learn all there is to know about the composition of a substance and even about its physical propertied (which latter assumption is somewhat far-reaching) it still does not follow that we clearly understood its commercial designation or utility.

Jan 1, 1941

By D. D. Button, L. D. Jaffee

INTEREST in the use of graphite as a high-temperature engineering structural material has recently increased markedly. However, actual use of this material has been limited, in part because information about its high-temperature mechanical properties has been lacking. The information needed includes not only reliable values for the properties, but also how to control these properties. Malmstrom, Keen, and Greenl have reported on the tensile and creep properties of some graphites above 2700° F (1500°C). They observed measurable creep under tensile loading at 4000 OF (2200 °C) and higher, with elongations of about 7 pct at 4500°F. Their typical elongation-vs-time curve showed the normal three stages of creep found for many metals at elevated temperatures. The specimens used were heated by passing an electric current through them. This method of heating caused a significant difference between the surface and axis temperatures, and may have affected the results. More recent work by kattus, in which the specfinens were also heated by their own resistance, showed very little plastic deformation for either slow or fast tensile testing or for creep testing. Work at this Laboratory, already reported,3 showed that for temperatures above 4500 "F and under conditions of slow tensile loading some commercial graphites exhibited elongations up to 20 pct. The work reported here is the continuation of a study of the tensile creep behavior of some commercially available synthetic graphites at temperatures up to 5300°F, and is preliminary to a more systematic investigation of the variables governing the high-temperature mechanical properties of graphite. MATERIALS TESTED The tests were conducted on six blocks from four lots of synthetic graphite bearing four different commercial-grade designations. These blocks were selected because their tensile stress—strain properties had been determined in previous work.3 Table I pre- sents the available information, supplied by the producers, on the processing of these materials. Also included in this Table are the densities and the tensile strengths at room temperature and 4500°F determined by the authors. EXPERIMENTAL TECHNIQUE The furnace used to heat the specimens for testing is shown in Fig. 1. The heating element was a graphite tube, 3-in. OD by 2 1/2 in. ID by 24 in. length. A spiral was cut into the 6-in. center portion of this tube to provide a high-resistance sec-

Jan 1, 1961

By R. M. Daelen

Mechanical science is severely tested by the demands of the iron manufacture for the varied apparatus needed to transport and to treat raw materials and products. Water has long been a favorite means of transmitting pressure for such purposes, because of its own incompressibility. Further advances in its use are the more to be expected, since mechanical improvements have steadily tended to overcome the difficulties formerly encountered in the employment of great hydraulic pressures. So long as the pressure is not higher than that which requires for plungers, etc., only ordinary stuffing-boxes, with hemp or other similar packing, the necessary arrangements for the production and transmission of the water-pressure without leakage are very simple. But when this limit (which is, for most purposes, 50 kilos to the square centimeter) is exceeded, new conditions of construction arise, which are met in various ways, and which justify a primary division of hydraulic presses into low-pressure and high-pressure respectively. The former are used in lifting and moving weights, and employ pressures as high (in extreme cases) as 100 kilos per square centimeter; but at this point the friction between piston and hemp-packing is so great that the use of cup-leathers is already preferable. Beyond 100 kilos it becomes a necessity. The range of practicable tight packing which follows is considerable, extending to about 1000 kilos; but "high pressure" in practice is from 100 to 600 kilos, and it is to this that the present paper applies. General Classes and Types. Hydraulic transmission at high pressure usually claims consideration in case the solid mechanism, such as levers, cams, screws, and gear-wheels, would have to be too large, would involve too much friction, or could not be suitably adapted to the speed-requirements of the working-tools. Since steam is mostly the primary carrier of

Jan 1, 1893

By D. Vogt, T. Hattingh

"This paper argues that the technology change to mechanization is also going to require a change in people. It presents a model for technological progress and adapts it to the mining industry. It then goes on to motivate the need for mines to become learning organizations in order to achieve maximum value from their people as they become less labour-intensive. In an important sense, mechanization is as much about knowledge as it is about technology.The change when a mine introduces mechanization or a level of automation is not simply one of technology but also a stage in the development of mining from ‘art’ to ‘science’. ‘Art’ describes a state of technology characterized by tacit knowledge, an understanding that comes only from experience, and has no formal procedures and little structure. In contrast, ‘science’ represents a state of technology where all the component processes are understood in detail, all knowledge is explicit, and processes and structures are formal.Studies of other industries, including metal part manufacture and aviation, show that each stage in the progression from art to science changes the nature of the organization and requires a different mix of skills from the workforce. Perhaps the most important change is the increase in knowledge and decision-making required as the technology gets closer to science.There is anecdotal evidence that South African underground hard-rock mines are not learning organizations. Mines by their nature are capitalintensive with long lead times from investment to returns, so there is reluctance to change from the original plans or to encourage staff to think independently. Particularly as mines move from art to science, this reluctance must be overcome.The important lesson for engineers involved in introducing mechanization is to understand that success or failure will be determined by the people involved, and not solely by the technology. The process will almost certainly require a culture change on the mine. We recommend that the mechanization team includes an expert in human and organizational behaviour to ensure that a receptive workforce and management are in place to accept the new technology when it arrives."

Jan 1, 2016

By Rudrajit Mitra, Tien Dung Le, Chengguo Zhang, Bruce Hebblewhite, Joung Oh

"Geomechanical and geotechnical characteristics of coal seam are important parameters that directly affect the cavability of top coal in the longwall top-coal caving (LTCC) method. The impact of these parameters such as coal strength, coal deformation modulus, coal discontinuities and top-coal thickness on cavability has not been fully understood in previous numerical analyses. The limitation and selection of the numerical modelling codes were two of the main reasons. In this paper, detailed caving simulations are performed using a 2D distinct element method (DEM) code, UDEC, to study the effect of various critical parameters on top-coal cavability. The numerical analysis evidently shows that the coal deformation modulus, coal discontinuities, and top-coal thickness have considerable influences on cavability. Coal strength is also a factor but to a lesser extent. The results presented in this paper contribute to the understanding of top-coal cavability in different mining environments and facilitate the development of an advanced cavability evaluation criterion. INTRODUCTION The longwall top-coal caving (LTCC) method was originally developed in the 1950s in the former Soviet Union and France (Tien, 1998). The method was nearly abandoned in Europe after the mid-1980s; however, it has been significantly improved and widely applied in China since the late 1980s. A conceptual model of the LTCC method is shown in Figure 1 in which a thick coal seam is divided into two sections including the lower or cutting section, and the upper or top coal section. The lower section of coal seam is mined by conventional longwall method. Meanwhile, the upper section is recovered by caving through the face support. The LTCC method is considered to be the most viable option for mining general thick seams. Compared to the multi-slice longwall (MSL) method, LTCC has the major advantages (Zhongming, 2001; cited by Vakili, 2009):"

Jan 1, 2017

By D. M. Xue, T. B. Li

"With the increase of human engineering activities, global climate change and active plate tectonics movement, the giant landslide frequently occurred in southwest China, which caused huge property and human losses. Besides, the potential landslides pose severely threaten to the construction and operation of airports, railways, highways and power stations etc. In order to provide accurate guidance for the landslide investigation, stability analysis and mitigation, the giant landslide is redefined according to landslide volume, depth of slip surface, complexity of landslide mechanisms, and degree of landslide mitigation difficulty, and classified with the typological classification approach based on the twofold attributes of landslide behavior including formation mechanisms and reactivation features. Finally, the threefold particularity of the giant landslide is also summarized, which enables a more effective landslide mitigation design.INTRODUCTIONWith the increase of anthropogenic activities, global climate change and active plate tectonics movement such as continual uplifting of Qinghai-Tibet plateau and strong earthquakes, the occurrence of giant landslides was in ascending trend in southwest China (Huang, 2009), which caused serious destruction, and greatly endangers such engineering construction from safety, time and economic aspects as airports, railways, highways, power stations, etc. Giant landslides have huge scale, complex formation/reactivation mechanisms and mechanical behavior. They may not be identified during the hazard investigation, but may be firstly initiated or reactivated due to the following engineering activities, heavy rainfall or strong earthquakes. Consequently, the landslide mitigation is inevitable and costly. However, it is difficult to control the deformation of giant landslide with lack of a correct understanding of genetic mechanisms (Marui, 2012; Zhang, 2000) and the excessive large sliding forces of the slide blocks calculated by the conventional limit equilibrium method. For instance, the failure of anchored pile wall for the No.102 giant ancient landslide (Zhu et al., 2012) and stabilization measures for the Sidi Rached viaduct landslide(Guemache et al., 2011); four rows of piles had not prevented the occurrence of the No.12 landslide in a high fill slope in the Panzhihua airport (Li et al., 2012)."

Jan 1, 2015

Operation of a pilot-scale Floatex density separator was studied using a pyrite concentrate slurry feed. Experimental measurements were further utilized in parameterization of a hindered settling simulation model. The model incorporates particle slip velocity calculation and also a separation efficiency function, adjusted to describe the feed material characteristics. The model was used to compute the overflow and underflow compositions when both fluidization bed pressure and teeter water flow rates were varied. In addition, prediction accuracy and the model validity were evaluated. The simulations gave good results when the teeter interstitial velocities were moderate enough to avoid excessive turbulence in the fluidization. Prediction of the cumulative overflow and underflow size distributions in most experiments yielded essentially less than 10% relative error between the sample data and the estimated value of the 50% passing sizes.

Jan 1, 2011

By T. T. Chen

Gold in the Twin Creeks ore is primarily associated with arsenian pyrite. During pressure oxidation, the sulphides are solubilized, but part of the dissolved iron reprecipitates as jarosite and as an iron sulphate-arsenate-phosphate phase. The pressure oxidation products are subjected to cyanide leaching. The cyanide leach residues consist of quartz, gypsum, bassanite, anhydrite, small amounts of jarosite, an iron-sulphate-arsenate-phosphate phase, as well as trace amounts of orthoclase, rutile, pyrite, hematite and monazite; all these particles are dispersed in a fine grained matrix of illite-muscovite. The autoclave leach residues contain a small amount of carbonaceous matter. Many gold grains are detected on the surfaces of the carbon particles, and these gold particles are not leached during cyanidation. The gold particles are typically 0.1-0.2/Lm in size and commonly are embedded in the carbon surface or are coated with a K-AI-Si-S-O phase on the surface of the carbon. The gold grains are consistently associated with elevated CI contents (50-300 ppm Cl). The poor gold cyanide leach recoveries, which initially occurred in the Twin Creek developmental circuit under certain operating conditions, are attributed to the presence of chloride in the feed. This results in the formation of soluble gold chlorocomplexes in the autolcave and the subsequent sequestering of the gold on the surfaces of the carbon particles.

Jan 1, 2000

By M. J. Marcinkowski, A. S. Sastri

A detailed compressive stress-strain analysis and transmission electron microscopy investigation has been made of the deformation behavior occurring in a 50 at. pct Ni-Ti (hypoeutectoid) alloy and a 54.5 at. pct Ni-Ti (hypereutectoid) alloy. In the case of the hypoeutectoid alloy, three stages of work hardening are observed. Stage I occurs at a very low stress and is associated with plastic deformation via martensite formation. Stage 11 is characterized by very rapid work hardening and is due to difficulties in causing further deformation in the fine martensite aggregate produced in Stage I. Stage III which occurs at very high stress levels is characterized by smaller work hardening rates and is due to the plastic deformation arising from alternate reconversions of the original martensites to martensites of varying orientation. Rapid quenching of the hypereutectoid alloy leads to very high yield strengths and is related to a fine precipitate dispersion that such treatment brings about. The present investigation represents the final phase of a three-part study directed toward an understanding of the solid-state transformations in near equi-atomic Ni-Ti alloys as well as the deformation mechanisms associated with these alloys. In the first part,"2 to be henceforth referred to as I, it was found that alternate simple shears on {112} planes and in (111) directions convert the parent B2 structure in the equiatomic NiTi alloy into two distinct close-packed monoclinic martensites. All of the marten-sites were of this type, whether they were formed by cooling or by plastic deformation, whether induced to form in bulk samples or in thin foils, or whether examined in the electron microscope at room temperature or below. On the other hand, in the second part of this investigation,3 to be reffered to as 11, it was shown that upon slow cooling to about 640°C. alloys in the neighborhood of NiTi which possess the B2 structure transform eutectoidally into their equilibrium phases Ti2Ni and TiNi3. However, preceding the formation of these equilibrium phases a series of metastable intermediate phases are formed. This paper will set as its goal the elucidation of the remarkable deformation behavior exhibited by NiTi. In particular, Buehler and Wiley4 have found equiatomic NiTi to be surprisingly soft, while Buehler et al.5 have shown this alloy to possess a memory effect: i.e., upon bending at room temperature it will revert to its original shape when heated to above about 50°C. In I it was shown that NiTi was soft in the sense that the yield stress was low; nevertheless, the alloy work-hardened at an extremely rapid rate to very high stress levels. On the other hand, the hypereutectoid alloys with somewhat higher nickel, say 54.5 at. pct (60 wt pct) have enormously increased yield strengths compared to those of the equiatomic alloys. In order to determine the atomistic processes giving rise to the above behavior, it was decided to examine samples that were wafered from bulk specimens deformed in compression to various strains using the techniques of transmission electron microscopy. EXPERIMENTAL TECHNIQUE All of the alloys used in the present investigation contained either 50 at. pct Ni (55.06 wt pct) or 54.5 at. pct Ni (60 wt pct) and were arc-melted in the form of a finger using the same techniques described in I and II. The finger was capsulated in a stainless-steel jacket and swaged at 850°C into rods. Compression specimens 0.300 in, long and 0.200 in. in diam were machined from these rods. In order to completely re-crystallize the samples and remove residual stresses, all of them were capsulated in evacuated quartz, annealed for 1/2 at 1050°C. and then furnace-cooled. Compression tests were carried out in an Instron tensile testing machine covering a range of temperatures from —196° to 200°C using procedures described previously.6'7 In all cases crosshead speed was 0.02 in. per min. Wafers 0.015 in. thick were spark-cut from the cylindrical samples at 45 deg to the compression axes after they had been deformed to the desired strain. These specimens were then spark-planed to about 0.005 in. and then electrochemically thinned for examination by transmission electron microscopy as described in I.

Jan 1, 1969

By D I. Cliff

The loss of 11 miners in the 7 August 1994 Moura No.2 Underground Mine Disaster was the catalyst for major change in the way safety was managed in the Australian Mining Industry. The impact was felt across all sectors not just underground coal. It was the catalyst for the overhaul of the regulatory frameworks, moving away from prescription to management systems and risk management. This had a substantial impact on the way not only the industry operated but also on how the regulator functioned. It heralded the introduction of competency-based training across all levels of the mining workforce. Since that time major improvements in safety performance have occurred. However, hiding within the statistics are some disturbing trends. This paper aims to analyse the progress made in the past 30 years and identify the current and emerging issues. Automation is bringing major production and safety benefits, but at the same time other factors such as the reduction in workforce numbers and ever-increasing production pressures are leading to high turnover rates. This in turn causes to a loss of experience and expertise. In addition, and of particular importance, is the recognition of psychosocial wellness on workforce safety. Many of these factors are not unique to the mining industry however they may be exacerbated by the scale of mining, the remoteness of the mines and family unfriendly mining rosters.

Apr 16, 2024

By J. H. Wilhelm

Continuous thickeners can be sized either from previous experience, continuous pilot-scale test results, or from batch settling tests. Although it is a relatively simple process to size full-scale thickeners when previous experience or pilot-scale operating data are available, batch testing is often the only realistic method for sizing thickeners due to time restrictions, budget limitations and availability of sample material. Many authors have, therefore, suggested means of running batch tests and analyzing the resulting data. Fundamental thickening theory had its beginning with the work o£ Coe and Clevenger(1). In order to determine the size of the thickener settling area, they proposed that a series of batch settling tests be run at various initial concentrations. The solids handling capacity at each concentration can then be determined and the lowest capacity (maximum area requirements) used to size the thickener. Kynch(2) developed a mathematical analysis in which the relationship between solids concentration and settling rate can be obtained from a single batch settling curve. Talmage and Fitch(3), Yoshioka(4)(5) and Dick(6), have enlarged upon these works to give a basis for methods of sizing thickeners.

Jan 1, 1979

By R. K. Rajamani

The theoretical model based on fluid mechanics, in conjunction with the laser-Doppler velocimetry (LDV) measurements, elucidate the size-classification mechanisms in an industrial hydrocyclone. The model has no adjustable parameters and involves solving the Navier-Stokes equations to predict the liquid-phase velocities. The spatial-concentration gradients were determined considering the particle phase in the Lagrangian frame and the classification curve was determined by balancing the forces acting on the particle. The force balance requires liquid velocities, which in turn depend on the local volumetric concentration of the particles. Hence, complete modeling work involves coupling both the concentration and liquid-phase velocity calculations until convergence is reached. Finally, the experimental and predicted classification curves were presented for 250-mm hydrocyclone operating at high-percent solids.

Jan 1, 1994

By G. Eaton

Safety management is an important mortal and business function in construction. Contractors have traditionally tracked and reported lagging indicators, e.g. fatalities and lost-time accident rates, to measure their safety performance and stay in compliance with relevant regulations. Over the last several decades, contractors became more proactive in their approach to safety and developed programs that track leading indicators, e.g. safety audits and safety climate. In particular, safety climate measures workers? perception of safety management and its effectiveness in the workplace. Past literatures indicated that, while some industrial construction contractors ignore safety climate measures, others are limited by a lack of a formal means to measure safety climate. In this study, a survey approach is used to measure an industrial construction contractor?s safety climate through three key areas: management commitment, job control, and general safety climate. As a pilot study, a total of 214 individuals at a fabrication facility participated in the survey to verify the validity and effectiveness of the proposed survey approach. This survey study also confirms that job control and management commitment have a positive correlation and that worker demographics have an effect on respondents? perceptions of management commitment.

Aug 1, 2013

By William L. Langdon

PRELIMINARY COMMENTS Recent years have been difficult for the mining industry, as reported in the most recently published Minerals Yearbook (Volume III), the estimated value of world crude mineral production has been generally declining since an historical peak in 1979 (16).* The costs of mineral extraction have, however, been rising rapidly. Individual project costs are, in general, exceeding the growth rate of mining companies, while operating and technical risks continue to increase (16). Risks resulting from currency flotation and political actions in the host country are also on the increase. Labor difficulties (such as those experienced by Phelps Dodge) and the Reagan Administration's recent rejection of a proposal by the International Trade Commission for higher tariffs and/or quotas on copper imports have also contributed to the mining industry's difficulties. The net result of these factors has been financial difficulties for mining companies with respect to paying for their current financial obligations as well as trouble finding new financing. It may be that one of the main factors in determining the future of the mining industry will be centered upon capital structure, i.e. how its assets are financed. Historical Perspective on Capital Structure In The Mining Industry As discussed by Isreal Borenstein in (4) and Thomas Navin in (7), mining firms typically have used a financial model based upon high financial leverage, i.e. large amounts of debt relative to equity. This has been especially true for American firms developing orebodies discovered overseas. Problems sometimes occurred for those who were forced to commit themselves to completion guarantees in order to obtain bank loans. Mines under these circumstances must be brought into operation regardless of market conditions. Politicians in overseas countries also may use the high profits required by these high risk ventures to argue for nationalization of mines. Coupled with the frequent use of high leverage, mining companies traditionally have paid out a higher percentage of earnings in the form of dividends than manufacturing firms. This is significant, in that such funds paid out in dividends are not available for other uses. Hence, a greater reliance upon debt and/or additional stock issues than would ordinarily be the case for manufacturing firms. Thomas Navin has stated in (7), that the theory behind the high dividend payout was that, "most mining investors thought of themselves as investing in a wasting asset, one that would gradually deplete over time until it ultimately became valueless." Investors, therefore, required a receipt, in the form of dividends, of a percentage of current earnings and a return on original capital. This view of reality, apparently, has not changed in some quarters, even though modern mine management ordinarily replaces depleted mines with new ones. It may be that this practice of high dividend payout coupled with relatively high financial leverage should be reexamined. Current capital structure theory could prove interesting and useful for those concerned with current conditions. Capital structure patterns and related practices in this industry are not, in many cases, congruent with those thought by some to be theoretically optimal. Prelude to Capital Structure Discussion With a few notable exceptions (such as the Guggenheims and Anaconda's chief operating,. officer in 1971) mining companies' chief executives and boards of directors have not been persons with financial backgrounds. This, one could conjecture, might have accounted for the relatively nonsophisticated nature of capital structures of mining companies. In order to appreciate the possibilities with respect to alternative influence on a firm's performance, one must be acquainted with the basics of financial theory. This paper is an attempt to familiarize the reader with (1) capital structure in general, (2) the usual components of this structure, (3) the general theory behind the use of financial leverage, and

Jan 1, 1985