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By C. F. Nagel

THIS paper is written primarily for those who are familiar with the processes mentioned but who desire a further insight into some of the fundamental principles. It does not give a complete description of the various practices employed in the working of aluminum and its alloys, but presents a few illustrations of the essential respects in which aluminum differs from other common metals, and emphasizes the controlling factors of the processes under consideration. HEAT TREATING Certain aluminum alloys are capable of having their mechanical properties greatly altered by a heat-treatment process. The degree of this improvement may be illustrated by some typical properties of duralumin (Table 1). It is essential that the material be in the wrought condition in order to obtain maximum heat-treatment effects. [ ] In the case of duralumin, the process consists of heating the metal to a prescribed temperature and then quenching it. Immediately after quenching, the material is relatively soft though not as soft as in the annealed state. If allowed to stand at room temperature, the material changes, increasing in hardness and strength without loss of elongation, but at the expense of the plasticity. This action is very rapid at first, gradually diminishing in intensity and to all practical purposes being completed in about four days. This process of hardening is termed

Jan 1, 1928

Fines and unnecessarily small rock fragments are created by as many as four identifiable breakage mechanisms which operate close to the charged section or sections of the blasthole. The peak blasthole pressure (Pb) should not exceed that value at which the rock starts to fail in compression. Excessive Pb values can be prevented by carefully selecting:1. the composition, density and/or diameter of the charge, and2. the initiation/priming system.The percentage of fines increases with:1. increases in the charge diameter:blasthole diameter ratio, burden distance, blasthole diameter, effective sub-drilling and size of blast, and2. decreases in blasthole spacing, stemming height and the length:width ratio of the blast block.Decked charges tend to reduce the percentage of fines.Excessive fragmentation is more evident in buffer blasting and sinking cut shots than in blasts fired to a clean free face. Initiation sequences which give effective burdens considerably less than drilled burdens encourage the minimization of fines, as does an inter-row delay time which promotes good progressive relief of burden.The wastage of explosive energy in creating fines is most pronounced where fully-coupled, energetic charges are fired in weak and/or highly porous rocks. This is especially so where forward movement of the strata is impeded by buffer rock, excessive burden distances and/or inadequate inter-row delay times.

Jan 1, 1979

By Nicolás Luis, Qi Liu, Gonzalo Montes-Atenas

"The prediction of froth flotation performance is still an unresolved topic. Classic industrial models based on particle size, elemental and mineralogical information provides recovery results with deviations that may become significant. One possible reason for this deviation may be the fact that the current liberation analysis provided by electron microscope based techniques does not take into account the outmost surface layer composition of liberated particles. In order to complete the description provided by the liberation analysis, other spectroscopy techniques measuring the extreme surface of the minerals can be tested. For instance, X-ray Photoelectron Spectroscopy (XPS) is a technique which measures the first tens of nanometers providing elemental composition over the particle surface and allows resolving the elemental associations present at the surface sample. However, this information needs to be statistically robust, reproducible and most importantly representative of what is occurring in the process. The aim of this research work is to develop a statistical model based on particle population to evaluate the feasibility of turning the XPS technique into a metallurgical tool. The model consists of classic statistical population arranged in a bed of heterogeneous particles with a known grade and mineral liberation. The simulations showed that the XPS results statistically followed a well-defined pattern. The statistical results were confronted with pilot plant results obtained from a rougher bank when processing a copper sulfide ore from a Chilean mine site. It was observed that the probability function distribution was in agreement with the experimental data. Further analysis on how the XPS results provide valuable information improve the computation of froth flotation recoveries is also discussed."

Jan 1, 2014

By George A. Morgan

The 53 countries that constituted Africa in 1991 accounted for a significant portion of total world output of a number of mineral commodities. However, total output for the continent declined for many major mineral commodities produced compared with that of 1990. Also, Africa's share of total world output of these commodities generally declined. (See tables 1 and 2.) The most conspicuous declines were for cobalt and copper owing to mining and metal processing difficulties experienced by the world's two largest cobalt producers, Zaire and Zambia. Phosphate rock output declined primarily owing to a sharp fall in production from Morocco, also a leading world producer. Morocco's state corporation for phosphate production experienced marketing problems, leading to the decline.

Jan 1, 1993

By E Portes, G Noble, J Roberto, A Stabile

Iron ore beneficiation plants are facing economic pressures to treat more challenging ore types, improve efficiency and improve product quality. Better control and stability of the plant process in the face of increasing feed ore variability has been a goal for many of the operations facing these challenges.Prompt gamma neutron activation analysis (PGNAA) technology has proven to be a successful measurement technique within an iron ore beneficiation plant. PGNAA was first developed in the early 1980s for the measurement of the elemental composition of bulk materials. Today, PGNAA technology is applied for elemental analysis within the iron ore industry on both bulk materials and slurries.Traditional composite sampling throughout the wet iron ore beneficiation process provides a delayed measurement of average properties but does not capture the true variability of the process in real-time. As such this is a limiting factor towards stabilisation and optimisation of the process. A PGNAA analyser provides real-time slurry elemental analysis of feed, concentrate and tails streams within the processing plant. The analytical data from the analyser can be exploited with a control strategy to correct and stabilise the plant on a much shorter time scale, delivering significant economic benefits and greater operational flexibility. The economic benefits include more stable product quality and a reduction in composite sampling and laboratory costs.Some example results will be presented from the Vale Vargem Grande iron ore beneficiation plants, which are utilising a six stream multiplexed Thermo Scientific PGNAA Slurry Analyser.CITATION:Noble, G, Stabile, A, Portes, E and Roberto, J, 2017. Real-time slurry elemental analyser for iron ore beneficiation plant control, in Proceedings Iron Ore 2017, pp 481–486 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By George Harrison

A great many labor leaders and others advocate shot-firers as the acme of relief for all the dangers connected with solid shooting, and where large quantities of powder are used in one blast in coal mines. Legislative bodies in several mining States have enacted laws providing for shot-firers in mines under such circumstances, the blasting to be done at night after the miners have left the mine. With all due respect to the opinions and honesty of purpose of these advocates of shot-firers, it is evident that a great many of them are not considering this important question in the broad sense it deserves and should be considered.

Jan 1, 2008

By M. D. Arnold, P. B. Crawford, P. C. Hall

An experimental study has been made to determine the optimum flooding pressures for four different oils. The oil formation volume factors ranged from 1.08 to 2.13, and solution gas-oil ratios ranged from about 200 cu ft/bbl to 2,250 cu ft/bbl. Viscosities ranged from 0.38 to 0.95 cp at the respective bubble points of the fluids and from 0.7 to 20 cp at atmospheric pressure. Water floods were conducted at various pressure levels from run to run. The recovery as a function of flooding pressure was found to be different for each fluid, with optimum gas saturations ranging from 7 up to 35 per cent. The data indicate that substantially higher recoveries may be obtained if water floods are conducted at an optimum pressure and that this optimum pressure is a function of fluid properties. The same core was used for all tests, and the reproduction of saturations for various runs indicates that wettability in the predominantly water-wet core did not change. INTRODUCTION A paper was presented by Bass and Crawford' which described an experimental study of the effects of flooding pressure and rate on oil recovery by water flooding. This work was conducted using high-pressure models operated in a manner similar to that of an actual reservoir, with gas saturations being obtained by a solution-gas-drive mechanism. They found that the greatest oil recovery was obtained for the system studied by flooding in the presence of a 5 to 7 per cent gas saturation. Another experimental study simulating field conditions was presented by Richardson and Perkins.' They used an unconsolidated sand pack containing kerosene-natural gas fluid and interstitial water. They flooded at various pressures and flooding rates. For their system it was found that the recovery was independent of the pressure level at which the water flood was performed. Kyte, et al," found that oil recovery by water flooding was increased as the free gas saturation at waterflood initiation was increased. However, after the initial gas saturation was increased above 15 per cent, the increase in oil recovery tended to level off. All of their runs were made at the same pressure using a light oil saturated with helium. The desired gas saturation was obtained by injecting helium into the core. Dyes' made calculations which showed that an optimum gas saturation of 12 to 14 per cent may result in an increase in oil recovery of 7 to 12 per cent over that obtained by flooding at the bubble-point pressure. Others have also found that the presence of a free gas saturation may increase the waterflood oil recovery. In each case shrinkage was small and changes in fluid properties with respect to pressure were small. A careful review of the literature reveals that at the present time there is a wide difference of opinion on the factors affecting waterflood recoveries. This diversity of opinion is probably due to the fact that very little research has been done which has taken into account the many variables existing in an actual field being water flooded. Since the literature contains little information on high-pressure waterflooding studies using various types of reservoir fluids, it was believed appropriate that such a study should be made. EQUIPMENT AND PROCEDURE All tests were made using the same consolidated sandstone core. Torpedo sandstone was used to turn a cylindrical core 13.5-in. long and with a 2.92-in. average diameter. The core had a porosity of 28 per cent and a permeability to brine of 146 md. This brine was made up by adding 20,000-ppm sodium chloride and 30,000-ppm sodium nitrite to distilled water. This was used as connate water and flooding water. No fresh water was ever brought in contact with the core, as tests showed the sandstone contained argillaceous material which swelled in the presence of fresh water and plugged the stone. The core was sealed in a section of 6-in. N-80 tubing with Woods metal filling the annulus. The core was mounted horizontally; an injection well was placed in the center of one end and a production well in the center of the other. Pressure control was maintained by placing a back-pressure regulator (upstream control) on the producing well. The "live" oil was stored in a separate bottle and water was injected into this bottle to displace the oil for saturating the core using a two-cylinder standard-proportioning pump. This same pump was used for water flooding the core at a constant rate. This system was enclosed in water jackets and the temperature was automatically main-

By Yan Samuel Ferreira Junqueira

A Coqueria de uma usina siderúrgica é responsável pela produção de coque e produção de vapor para geração de energia usando como matéria-prima uma mistura de carvões, o coque produzido é utilizado como o principal combustível nos altos-fornos. A Coqueria da ThyssenKrupp CSA utiliza a tecnologia Heat Recovery com Stamping Charger para compactação e preparação da massa de carvões para enfornamento e coqueificação. A tecnologia de compactação da massa de carvão agrega vários benefícios ao processo, tais como: aumento da densidade, homogeneidade e alinhamento da carga enfornada, melhora no controle do processo de coqueificação e nos parâmetros de qualidade do coque, além de possibilitar a utilização de carvões de menor poder de coqueificação, reduzindo assim o custo de produção do coque e da geração de energia. Através do automatismo do Stamping Charger é possível avaliar e calcular a densidade da massa de carvões e o ganho de produtividade que este sistema proporciona.

Aug 1, 2018

By H. D. Hagen, C. E. Nelson

14.1-1. Coal Mining. CORPORATE STRUCTURE. Most coal companies that operate surface mines had their beginnings as basically one-man organizations, with all decisions and controls in the hands of the founder. At the early stage of the company development, it is usually quite possible for one man to handle all management functions as the mining operations generally are quite localized and the founder can have a first-hand knowledge of all facets of the operation. However, with continued growth, the entrepreneur finds that he must limit himself more and more to the top level of management and delegate the day-to-day operation to others. An organization must be developed that provides not only for current operations but also for continued growth of the company through acquisition of coal reserves in market areas that the company desires to serve. In general, a successful coal company engaged in surface mining must develop an organization consisting of the following departments or divisions: operations, sales, engineering, exploration, land, purchasing, financial, and legal. Of course, all of these departments are not required in the beginning. When the company is small, there is much overlapping of functions. For instance, the operating department will handle purchases and the engineering department will also handle exploration and land functions. A growing surface-mining company has generally evolved through the various stages of development into an organization that is typical of large mining companies. An examination of a typical company and its various departments and their functions should give an insight into the organizational trends of surface mining companies. Having begun as a typical one-man organization, a company of today can be highly centralized, with firm control of all phases of the company's operations in the executive offices. This is achieved by having all department heads (Fig. 14.1-I), as well as the senior management, based in central offices.

Jan 1, 1968

By Musa Karakus

Reflected light microscopic (RLM) examination of dust particles from lead and copper smelters can effectively characterize their mineralogy, texture, and origin. Scanning electron microscopic-energy dispersive spectroscopic (SEM-EDS) analysis provides confirmation of the optical identifications and chemical data on the phases. Studied lead smelter dust samples were from the: I) blast furnace, 2) sinter plant scrubber, 3) sinter plant crusher, 4) dross furnace, and 5) refinery. Phases identified included galena fragments, melted PbS, metallic Pb and Cu, Cu-Ni, Cu-Zn, Zn-Ag, Zn-Cu-Ag, Ni-Cu-Sb, and Ni-Cu-Zn-Ag metal alloys, Ni-sulfide, Cu-sulfide, and Cu-Pb-sulfide dross .phases; slag and sinter particles, coke fragments, unreacted original feed phases: pyrite, chalcopyrite, sphalerite, siegenite, bravoite; and oxidized particles: iss, bornite, chalcocite, covellite, magnetite, hematite, and goethite. Dust from a secondary copper refinery were found by RLM and SEM to consist of tenorite, cuprite, cassiterite, two silicate phases. Magnetite, hematite, Fe-Al-Cr-Mg spinel, periclase, forsterite, and wollastonite were derived from the furnace linings during initial cleaning.

Jan 1, 1992

By Gary M. Bone

The autonomous control of vehicles interacting forcibly with their environment, such as dozers and tractors, is an unsolved and challenging problem. Forces and motions are inherently coupled between the tool and the means of vehicle propulsion. Furthermore, they are often operated within uncertain and unstructured environments, such as those encountered in underground mining. There is a growing industrial interest in the development of robotic vehicles to improve productivity, efficiency and safety in mining and construction. This paper focuses on the modeling and control of autonomous robotic dozing for a material removal operation. A dozing process model has been developed based on observations of both a fullscale dozer and a scaled-down version. The model characterizes the dynamic interactions between the blade position, material accumulation on the blade, material distribution in the environment, and the motions of the dozer. The dozing control objective is to remove the loose material as rapidly as possible by driving forwards at full power while automatically raising/lowering the blade in response to sensor measurements. Two different controllers were developed to meet this objective. The first controller is based on a set of heuristic rules, and the second is an optimal controller based on the dynamic model. An instrumented scaled-down robotic dozer and dozing environment, designed to emulate the full-scale operation, are used to implement the controllers and compare their performances over multiple dozing passes. Experimental results are presented showing that the model-based controller increased the material removal rate by 33% compared to the rule-based controller. Lastly, technologies for full-scale implementation are discussed, followed by proposed future work and conclusions.

Aug 1, 2013

By R A. Eggleton and, P de Caritat, K M. Scott

The Portia Au and North Portia Cu-Au-Mo prospects are located on a magnetic structure called the Benagerie Ridge Magnetic Complex, comprising varying pyrite-bearing Proterozoic albitite, phyllite and carbonaceous phyllite. The prospects are covered by up to 75 m of Cainozoic sediments, which comprise from top down, surface soils, Quaternary sediments, the Miocene Namba Formation and the (Late-Oligocene?) Portia Unit.The Portia Unit is dominantly clay-rich with local sand-rich base and it fills palaeo-topographic lows and a palaeo-valley that incised into the weathered basement rock (saprolite). This sedimentary unit hosts the majority of the Au grains found at Portia, with additional Au grains also present in the underlying saprolite. The North Portia prospect comprises saprolite hosted Cu-Au-Mo, with elevated concentrations of As-Pb-V present in the northern part of the prospect. These two groups of elements are delineated using factor analysis, and are regarded as the pathfinder elements for the North Portia mineralisation.Secondary Cu minerals including covellite and native Cu are present in the lower saprolite, and are stable under reducing conditions in the saturated zone.In the upper saprolite (unsaturated), Cu, Au, As, Mo and Pb are associated with Fe-oxides, mainly goethite and hematite. Saprolite leached of Fe generally contains low pathfinder elements concentrations.

Jan 1, 2004

By Maycon de Almeida Gomes

Fiber reinforced polymeric composites have received widespread attention in the past four decades because of their high specific strength and modulus. In particular, research works have disclosed the potential advantages associated with the use of lignocellulosic fibers as the reinforcing phase in polymer composites (2-3). Among various natural fibers, pineapple leaf fibers exhibit excellent mechanical properties. The main chemical constituents of pineapple fibers are cellulose (70–82%), lignin (5- 12%) and ash (1.1%). The superior mechanical properties of pineapple leaf fibers are associated with their high cellulose content (6). This work aims to make the analysis of the Izod impact energy against volume fraction of palf fibers of epoxy composites reinforced with PALF. The fibers were incorporated into the epoxy matrix with volume fraction from 0 to 30%. After fracture the specimens were macro photograph analyzed.

Aug 16, 2017

By Mark Sanders

This report describes an experiment which was conducted to compare the relative bumping hazard of a low and high profile hard hat (helmet) in a low seam mining environment. The study was specifically designed to assess the effect of lowering the helmet profile on frequency of head impacts in an underground low seam coal mine simulator. This involved subjects performing four common low coal mining tasks wearing the low and high profile helmets in the low seam simulator (36" and 48? heights). The results of the study indicated that a low profile helmet could reduce bumping frequency in underground low coal approximately 25%, and as much as 80% on selected tasks. It was beyond the scope of the study to measure the impact force, thus it was not possible to estimate the effect of the low profile helmet on severity of impacts underground. The research team recommended that a more extensive investigation be made of head injuries experienced in low seam mining (both underground and surface) with the objective being to assess the impact of a low profile helmet on total head accident exposure.

Jan 1, 1980

By R. J. Murphy, N. J. Grant, J. W. Dowding

A large number of blast furnace slag-metal tests were examined to determine if the manganese reduction could be used as a primary indicator of the degree of oxidation or reduction of the slag and of its desulphurizing power. Slag basicity and temperature were also evaluated. Two laboratory heats were made and sampled prior to reaching equilibrium to check blast furnace data. IN a recent investigation of the factors affecting desulphurization in the blast furnace, is was evident that manganese reduction appeared to parallel the course of desulphurization. Grant, Kalling, and Chipman1 pointed this out in a series of time studies utilizing closely controlled laboratory melts. Fig. 1 is a composite plot of sulphur removal and manganese reduction as a function of time under two slags of different basicity. Manganese reduction appears to approach equilibrium at approximately the same rate as does sulphur. It was also demonstrated that the addition of oxygen to the slag, as manganese oxide, caused a sharp reversal of sulphur from the slag to the metal.' It has been shown that "Excess CaO" was a primary factor in measuring the degree of desulphurization under ideal reducing conditions,1,2 the following reaction being representative of the process: CaO (slag) + S + C (solid) = CaS(slag) + CO (gas) It was also evident that a second reaction could drive the sulphur from the slag into the metal. A suggested reaction was' CaS (slag) + 0 = CaO (slag) + S Any change in the oxidizing power of the system would thus affect both the sulphur and the manganese without causing any change in the calculated basicity of the slag. "Excess CaO," "Excess Base," and other similar basicity values, under such oxidizing conditions, would therefore not be the best measure of desulphurizing power; instead, as was shown by and Chipman" he oxygen content of the slag at low oxygen levels would be the controlling factor. Unfortunately, the extent to which FeO is reduced in the blast furnace makes it difficult to utilize slag FeO as an accurate indicator of the degree of oxidation. By comparison, manganese reduction in the blast furnace proceeds more slowly and is generally only about 40 to 70 pct complete. manganese, which is present in significant amounts and is readily analyzed, offers an opportun-

Jan 1, 1954

By Elaine Carballo Siqueira Corrêa

Os aços rápidos são aços ferramentas de alta liga capazes de usinar metais a altas velocidades. Dentre estes, o aço rápido AISI M2 é um dos mais empregados, em função das boas propriedades alcançadas mediante a combinação de composição química e parâmetros de tratamentos térmicos. Neste contexto, o objetivo deste trabalho foi avaliar os efeitos da temperatura de aquecimento na têmpera sobre a microestrutura e dureza do aço AISI M2 após revenimento em diversas temperaturas. Para tal, duas temperaturas de têmpera e cinco temperaturas de revenimento foram definidas. As transformações microestruturais foram analisadas por meio de microscopia eletrônica de varredura e difratometria de raios-X. A dureza foi obtida por ensaios Rockwell C. Foi observado que, de modo geral, o aumento da temperatura de aquecimento promoveu elevação nos valores de dureza do aço, sendo que, para a maior temperatura utilizada, notou-se a ocorrência do fenômeno de endurecimento secundário. As análises microestruturais revelaram a presença de maior quantidade de carbonetos nas amostras temperadas à menor temperatura.

Oct 30, 2017

By Glenn M. Boyce

This paper discusses the results of a laboratory testing pro- gram to determine the validity of hydraulic fracturing stress measurements in salt. Tests were performed on 15 cm diameter samples loaded under hydrostatic stress conditions to determine the influence of time, confining pressure, flow rate, borehole diameter, and packers on breakdown pressure. Tests were also performed in a polyaxial loading frame to determine whether or not hydraulic fracturing could be used to measure non-hydrostatic stresses. The test results indicate that the breakdown pressure is not affected by time delays of up to 64 hours between the application of load and fracturing the rock. Breakdown pressures were found to fall short of predicted elastic values at higher confining pressures for the hydrostatic tests. The ratio of the horizontal stresses in non-hydrostatic tests had no effect on breakdown pressures. Flow rate and borehole diameter variations were found to have a marked effect on breakdown pressures. Shut-in pressure values, which are generally used as an indication of the minimum stress value, exceeded the applied minimum stresses by 10 to 60% depending on the method of determination used. The lack of a relationship between breakdown pressure and horizontal stress ratio may preclude hydraulic fracturing from being used in salt as it is conventionally applied in brittle rocks.

Jan 1, 1984

By Roy T. Bowles

This paper focusses on technological developments which occurred in the village of Deloro, Ontario between 1868 and 1919. These developments illustrate the manner in which improved metallurgical processes linked Ontario mineral resources to industrial expansion. Overview of Deloro The village of Deloro is in Hastings county, about 5 miles from the village of Marmora, the site of the old Marmora iron works and the more recent Marmoraton iron mine. In this area, the Canadian Shield meets the Great Lakes lowlands. The first settlement in the vicinity occurred in the 1820s and was associated with the Marmora iron works. Settlement grew around agriculture. Gold was discovered in Hastings county in 1868. Deloro - the name derives from gold - developed as a concentrated settlement in proximity to several gold mines and the related processing activities. By 1901, substantial smelting works were successfully producing gold and arsenic from local ores. The village was developing as a company town within the framework of benevolent paternalism. For reasons associated with markets and with local ore supplies, the Deloro mills were idle for a period beginning in 1902. Developments in later periods connected Deloro to world events. In 1903, silver was discovered at Cobalt, Ontario. By 1907, M.J. O'Brien, who owned mines at Cobalt, had purchased the Deloro works and was using them to process Cobalt-area ores*.

Jan 1, 1999

By M. J. McPherson

The legislation that prohibits the recirculation of air in coal mines was formulated because of the fear that concentrations of airborne pollutants would rise to dangerous levels. This paper undertakes a simple analysis of the effects of a controlled recirculation system on the gas concentrations in headings. It is shown, through an algebraic formulation and a numerical example, that a properly planned system of controlled recirculation leads to a reduction in the maximum general body gas concentration that occurs in a heading.

Jan 1, 1988

INTRODUCTION Trade financing is a particularly important component of short-term financing for a minerals company since errors, extra costs, or payment delays/defaults can easily wipe out the profit margin on a particular shipment or can cause problems when arranging purchases of e.g. reagents. It is required to make any minerals operation function and does not have to be cross-border to require proper management. Sources of working capital are as follows: 1. Extended credit terms from suppliers 2. Inventory loans from banks, finance companies 3. Accounts receivable financing or factoring 4. Credit lines or overdraft facilities from banks. TRADE CREDITS These are provided under the familiar terms "net 10 days" or payment due by the "10th day of the following month." Thirty days for payment is usual but longer periods can be negotiated with regular suppliers. Shipment may be made on open account with specified periods for settlement. In the mining industry, a custom smelter gains trade credit by paying for concentrates three months after the month of shipment. INVENTORY LOANS Various forms of inventory finance are provided via "floor-plan" or warehouse financing. A set percentage, usually 60%-80%, of a good-quality, readily saleable inventory item (e.g. bullion, concentrates, ingots) will be provided by a bank or finance company which will usually have security over these products and has a right to inspect the goods from time to time. Legal security will he achieved by warehouse receipts, floating liens, chattel mortgages, trust receipts, or through collateral management service companies. The latter certify control over stock or distribution outlets and often carry insurance against fraud. Costs range around 1.5% - 2.0% p.a. or more plus some fees to cover out-of-pockets or other costs. ACCOUNTS RECEIVABLES Accounts receivable financing is based on the company's generation of satisfactory receivables which are continuously assigned to a bank or finance company ("factoring"). Because of the risks in being able to collect receivables, such as payments to a smelter for its blister copper shipments to a refinery, this form of financing costs as much as 3% - 5% of the debt amount purchased plus an additional charge for processing paperwork. Receivables can be purchased with or without recourse and on a notification or non-notification basis to the client's customer to, respectively, pay the invoice directly to the bank or not. LETTERS OF CREDIT Letters of Credit ("L/C's") are a common feature of international trade finance whereby a bank, at the request of the buyer, issues a written undertaking to an exporter to pay a specified sum of money within a set time on presentation of previously specified documents. This undertaking means that the exporter is no longer relying on the credit standing and integrity of the foreign importer. A dispute about shipment does not otherwise affect the obligation to pay upon presentation of a "clean" set of documents. These documents include the hill of lading and other documentation, often on standard "form" bases. There are a number of conventions and techniques in L/C's such as irrevocable/revocable L/C's, time L/C's, confirmation/advising L/C's and transferable L/C's. These are tools to adjust for the varying risks that the importer will not pay. Other routes where one is comfortable with an importer include documentary sight hills (D/P hill), documentary term bills (D/A bill), and, of course, open account.

Jan 1, 1985