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By Paul Weir

DURING the past decade, methods of producing bituminous coal in the State of Illinois, which ranks third in production among the states in which bituminous coal is mined, have undergone great changes. From less than one million tons in 1923, the strip-mine production has gradually increased to a high of 11,725,870 tons in 1937. From a negligible amount prior to 1927, the amount of coal mechanically loaded underground had increased to a high of 28,374,362 tons in 1937. The amount manually loaded in 1937 reached a low of 12,332,023 tons. In this same year, this state ranked first in strip-mine production, also in mechanically loaded production. For this reason a study of the influence of mechanization on location of production in Illinois may be helpful in anticipating what may happen in other producing states. The reason for the changes in methods lies in the differences in costs of production. The Bureau of Research and Statistics of the National Bituminous Coal Commission has made public the following costs of pro-duction by various methods in the State of Illinois (district 10) for the last nine months of 1937: all mines, $1.7602 per ton; strip mines, $1.4319; mechanical loading mines, $1.7457; hand loading mines, $2.1793; all underground mines, $1.8703. These are weighted averages for the entire district. Inasmuch as production in 1937 was reported from 58 counties scattered over two-thirds of the area of the state and from five different seams varying in thickness from less than 3 ft. to as much as 12 ft., it is apparent that the location of production must be influenced by the extent of mechanization possible in the various producing counties.

Jan 1, 1939

By Henry D. Hibbard

A noted ordnance engineer once said to a friend, in speaking of the production of great steel guns, " How is it ? We design our guns with a factor of safety of eight, and the guns burst." The vague way in which internal stresses and strains in iron and steel are often considered and spoken of makes it worth while to examine them, as to their nature, their causes and results, how they may, for useful purposes, be advantageously dealt with, and how, when detrimental or dangerous, they may be reduced or kept within harmless proportions. Rankine defines " strain " as a change of form or dimensions of a solid or liquid mass produced by a stress. This definition seems intended not to cover strains due to internal stresses, and it will help us in the present inquiry to consider strain as a tendency to change as well as an actual change of form. Internal strains in iron and steel are the result of stresses within the mass of the piece, some parts pulling and others pushing in resistance to them; or, in other words, some parts are in tension and some in compression, each part striving to relieve itself from strain and make the piece assume a form in which all parts are at rest. Subdivision, so that each part could relieve its strain by motion relative to the other parts, would, if carried out far enough, practically obliterate strain. The internal strains we are now to consider are not those due to the stresses of the service which the piece is rendering, either alone or as a part of a structure, which may be termed service-strains, but those which originate or at least are contained in the piece itself. Internal stresses in a piece of metal are, like action and reaction, always equal and in opposite directions. The stresses

Jan 1, 1907

By Abdulkader M. Abed, Shadia J. Ikhmayies, Bothina M. Hamad, Belal S. Amireh, Yulia Valery Meteleva

This work is a first step on the way to characterize raw sandstone in Jordan, and to extract silica and silicon for the use in solar cells and other industries. Seven samples of raw sandstone were brought from Disi in Jordan. The samples were characterized by X-ray diffraction (XRD), scanning electron microscopy (SEM), energy dispersive X-ray spectroscopy (EDS), Fourier transform infrared spectroscopy (FTIR), and X-ray fluorescence (XRF). The XRD diffractograms showed that silica is the main constituent of the samples, and two samples contain Kaolinite Al2(Si2O5)(OH)4. EDS reports showed that all samples contain aluminum and carbon, but some of them contain calcium. XRF measurements revealed that some samples contain more than 97% silica, while one sample contains more than 90% silica, and the main impurity is Al2O3. FTIR revealed the known bands of silica, and this sandstone is free of organic compounds impurities.

Mar 1, 2017

By W. E. Pugh

The object of the following is to discuss a few of the problems encountered in the practical field application of reflection seismology. Very little has been published on this phase of the work and it is to be hoped that discussions will be presented by many seismologists who have met with these problems in the field. No attempt will be made to discuss the general principles of reflection prospecting, nor to outline the general field procedure. These phases have been presented more or less in detail in previous publications1 while economy of space and time prevents their being repeated or amended here. If, in the following pages, some criticism is offered of those who have already given their time and efforts to present valuable papers on reflection shooting, we trust that it will be accepted in the constructive light under which it is offered. We do not wish to give the impression that the following paragraphs represent ultimate achievement in field procedure; they are presented more to illustrate methods we have found satisfactory thus far. We believe that the following three subjects are inexorably linked with the continued future successes and more widespread use of the reflection method which, at the present time, is the most

Jan 1, 1934

The Institute has set important objectives for 1988 to make the Institute still more purposeful. Precious metals The Second International Symposium on Mining, Extraction, and Processing of Precious Metals will be held in Las Vegas, Nevada, USA, during the 118th TMSAIME Annual Meeting in March 1989. The First International Symposium on Precious Metals.

Jan 1, 1987

By Ronald J. Roman, Craig Olsen

Alterations were performed on a previously developed heap leaching model representing sulfuric acid solution leaching of a malachite sandstone ore. The alterations were made in order to approach a more realistic solution to the leaching equations used in the model and to provide a means of obtaining a constant acid con- centration in the model' s simulated heap effluent solutions. This constant acid concentration is desired if the effluent solutions are to be treated in a solvent extraction-electrowinning plant. An economic study was made showing a use of the leaching model for an imaginary heap leach operation. The example illustrates a method of selecting heap leaching parameters if data are available on mining costs, dump costs, capital cost, etc. This was achieved using an incremental investment technique.

Jan 1, 1974

By Raj K. Singhal

This paper is a report on a task force study dealing with many facets of computerization. The primary mandate of the task force was to examine the software and hardware currently available for application relating to reserve estimation, mine planning, economic evaluation, equipment selection, production scheduling and composite mine simulation and to evaluate how adequately the software fulfills the user needs in surface mining of oil sands and coal. To meet its objectives the task force consulted extensively with the users, developers and suppliers of hardware and software. The paper outlines the approach taken by the task force to fulfill its mandate, summarizes its findings and presents some pointers which might be useful to others considering this type of evaluation.

Jan 1, 1986

By A. S. Rhea

SALT-WATER disposal in the East Texas field by means of injection into the Woodbine sand is a relatively new procedure. The purpose of this paper is to present what has been accomplished to date in this field, with-out detailed discussion of other means of disposal, such as surface impound-ing for evaporation or release into surface streams. Subsurface disposal of salt water is still in an experimental stage in the East Texas field, and, though water can be injected into the Woodbine sand, the economic problem is not as yet solved. As past experience has been that fields producing from the Woodbine formation produce large quantities of salt water, it was assumed early in development of East Texas that it would be necessary to dispose of a tremendous quantity of salt water in the later periods of production. There has been a gradual increase in the amount of salt water pro-duced in the field, until at present it is about 200,000 bbl. per day from approximately 4400 wells. It is only natural to expect an increase in the number of wells producing water, as well as the amount of water produced in the future, and it has been estimated that if present practices con-tinue the production of salt water may ultimately be as much as 700,-000 bbl. per day. The Woodbine sand is found in the East Texas field at an average depth of 3650 ft. The oil-bearing portion of the sand lies between the depths of 3050 ft. below sea level, on the east edge of the field, and 3320 ft. below sea level on the west, which depth was the estimated original average oil-water contact. The Woodbine sand under the field has the form of a broad tilted wedge pinching out on the eastern side of the field and dipping gently into the East Texas Basin toward the west. The Woodbine sand in the East Texas field has an average porosity of approximately 25 per cent and is highly permeable, the average being about 1300 millidarcys.

Jan 1, 1940

By G. B. Pryde, R. M. Magraw

In laying out a new mine, provision should be made for the ultimate recovery of as much coal in any given bed as is consistent with safety and economic mining. Though each mining district, if not each individual mine, has problems that make the adoption of any hard and fast rule impossible, certain basic principles are adapted to practically all conditions. One of the most vital is the provision for barrier pillars of ample dimensions to protect all haulage and permanent airways during the life of the property. Where conditions permit, room or butt entries should be driven on the strike or slightly to the rise, and rooms turned at right angles to these entries. The width of rooms and room pillars is governed by conditions prevailing in the mines under consideration. A safe rule is: In advancing, extract not more than 25 to 35 per cent. of the entire seam; in exceptionally thick seams, considerably less than 25 per cent. should be taken. Rooms usually vary in length from 250 to 350 ft. (76 to 106 m.) with a barrier pillar of not less than 80 ft. between the last crosscut. in rooms and the back entry of the level above. All entries, rooms, and entry-and-room crosscuts should be driven .on sights and room crosscuts should be driven at, right angles to the direction of the rooms. In mines under excessively heavy cover or where roof conditions are bad, rooms should be driven narrow and a barrier pillar left at every fifth to tenth room. This barrier should be of such dimensions that one or more rooms, with pillars of usual dimensions, may be turned through it when the barrier is no longer required. Two of the advantages of such a barrier are the protection of the panel against peaking of roof load during pillar extraction and the easy closing of the entry in case of fire. Where economic conditions permit, it is preferable to follow the retreating panel system of mining. In the case of coal that outcrops, and even in cases where no outcrop is exposed, it is preferable to commence pillar extracting on the high side of the mine. Where the retreating

Jan 1, 1922

By G. Poropat, A. R. Guest, H. P. Grobler

At the De Beers Consolidates Mines operations it is common practices to perform Geotechnical mapping of the newly exposed faces in the waste and ore rock. The purpose of Geotechnical mapping is to quantify the in-situ fracturing of a rockmass that in turn is required during the planning and application of a mining method. Whether it is to determine slope angles, caveability, impact of blasting or support requirements. This mapping involved a cumbersome and time consuming procedure that requires individual examination and description of the natural inherent fractures exposed by mining. During highwall mapping in an open pit this can be a safety concern due to the duration of time spent below a highwall. The advantages gained through the recent introduction and application of SiroVision® allows safer mapping, an increase in statistical fracture population, archiving of rock faces and the more accurate reflection of the true mapping. This paper aims to describe in detail the application of the recently developed SiroVision®, photogrammetry software, to replace conventional face mapping. A De Beers Consolidated Mines, il est pratique courante de faire une cartographie géotechnique des tailles récemment exposées dans le rocher stérile ou minerai. Le but de la cartographie géotechnique est de quantifier la fracturation in-situ d’une masse rocheuse, qui sera nécessaire lors de la planification et application d’une méthode minière, que ce soit pour déterminer les angles des galeries inclinées, les possibilités de foudroyage, l’impact du dynamitage, ou les besoins en supports. Cette cartographie nécessitait une procédure longue et compliquée qui demande l’examen individuel et la description des fractures naturelles propres exposées par l’opération de mine. Pendant la cartographie de parois dans une exploitation à ciel ouvert, cette opération peut être dangereuse à cause du temps passé sous la paroi. Récemment, le lancement et application de Siro Vision apportent l’avantage d’une cartographie plus sûre, une augmentation des statistiques de population de fracture, l’archivage des tailles de roches, et le reflet plus précis de la cartographie. Le but de l’étude présente est de décrire en détail l’application du développement récent de Siro Vision, logiciel de photogrammétrie, pour remplacer la cartographie de taille conventionnelle. Bei den De Beers Consolidates Mines Operationen ist es gängige Praxis geotechnische Aufzeichungen des Taub- und Erzgesteins neu geöffneter Abbaustellen zu erstellen. Zweck dieser geotechnischen Aufzeichnungen ist die vor-Ort-Quantifizierung des Bruches der Gesteinsmasse, welche im Gegenzug während der Planung und der Anwendung einer Abbaumethode erforderlich ist, sei es um einen Neigungswinkel festzustellen, Abbaubarkeit, Auswirkung von Sprengungen oder Anforderungen an Unterstützungen. Die Aufzeichnungen waren mit umständlichen und zeitaufwendigen Prozeduren verbunden, die eine individuelle Prüfung und Beschreibung der durch den Abbau freigelegten natürlichen inhärenten Brüche, verlangten. Dies kann auf Grund des Zeitraumes der unterhalb einer Flözoberschicht verbringt wird zu einer Frage der Sicherheit werden wenn die Aufzeichnung einer Flözoberschicht im Tagbau erfolgt. Die Vorteile auf Grund der jüngst erfolgten Einführung und Anwendung der SiroVision® gestatten sichereres Aufzeichen, eine Zunahme in der statistischen Menge an Gesteinsbrüchen und eine akkuratere Reflektion der tatsächlichen Aufzeichnungen. Diese Arbeit hat zum Ziel im Detail die Anwendung der kürzlich entwickelten SiroVision®, eine photogrammetrische Software, die die konventionelle Abbauortaufzeichnung ersetzen soll zu beschreiben.

Jan 1, 2003

By L. D. Hartzog

A pilot plant investigation of a semi-autogenous mill - ball mill circuit is described. The plant was operated with minus eight-inch diabase as feed material to the semi-autogenous mill. The semi-autogenous mill recycle screen underflow was put to a ball mill in closed circuit with a cyclone. An operating Work Index of 13.3 to 14.9 was obtained with the pilot ball mill. This Index is substantially in agreement with the scalped feed laboratory Work Index for 15.3 for recycle screen underflow. The Bond Index of the diabase was 15.8. Thus, one may use the scalped feed laboratory Work Index to size semi-autogenous grinding plant ball mills.

Jan 1, 1974

By William P. Blake

As the storage of water for agricultural and mining purposes in the arid regions of the West is now receiving much attention by the people and their representatives, some facts coucerning the greatest pioneer enterprise for the purpose should appear on our records. I refer to the dam and reservoir at Walnut Grove, in Yavapai county, Arizona Territory, which was finished in the winter of 1887, and is known as the Walnut Grove Dam, It is not my intention at this time to give a full description of

Jan 1, 1889

By John D. Price

COAL blending, in the preparation of coal before coke making, is so commonly practiced as to be almost universal. But the reasons underlying this practice, the benefits resulting from it, and the materials used in blending vary widely. This paper will outline the various phases of the subject and present information which may be correlated with work that has been done elsewhere. It will deal entirely with work done on the high-volatile coking coals of the western part of the United States, special emphasis being given to the coals of Colorado and Utah. A surveyL of the 86 coke plants in active operation in the United States during 1949 indicates that only 9 plants, or 10.5 pct of the total, charged one single rank of coal into their ovens, while the remaining 89.5 pcl made use of blending in some form. This report indicated that of these total plants 5 used straight high-volatile coal, 4 used straight medium-volatile coal, 47 used blends of high and low-vola-tile coals, 25 used blends of high, medium, and low-volatile coals, 2 used blends of high and medium-volatile coals, 3 used blends of medium and low-volatile coals. The fact that certain plants operated on a single kind of coal should not be interpreted to mean that no blending was practiced there, for invariably such plants secure their coal from more than one source and in the interest of uniformity do blend the coals as received. The general term coal blending covers two fields, the first of which is the mechanical mixing of a number of coals to secure uniformity. Often it is found necessary to secure coal for coke production from a number of different mines; these coals, though of the same general type or rank, may differ in their chemical composition or in the physical qualities they impart to coke made from them. Again, it is not unusual to find that coal from different sections of the same mine may show variations in quality. Under such conditions it may be necessary, in the interest of a uniform final product, to introduce a system of blending bins, a bedding yard, or other mechanical methods of securing a uniform mixture. Unfortunately this form of blending has received very little attention up to the present time; it has not received the consideration its value merits. The second type of blending, while also for the purpose of coke improvement, deals more particularly with the use of a blending agent differing in character from the base coal: it is this form of blending that will be discussed here. To consider only the western coals, for blending may be found necessary for other reasons with other coals, blending has been practiced experimentally or commercially under the following conditions: 1—When a single coal or mixture of coals of the same rank does not produce a satisfactory coke. For example, a high-volatile coal when used alone is likely to contract when coked so that a comparatively weak coke is formed. Or, if of very low rank, the coal may be deficient in the necessary bitumens required for good coke production. 2—When a product of some special quality is required, for example, when a plant ordinarily producing blast furnace coke must operate at slow coking rate to produce a high-grade foundry coke. Under this condition the reduced daily production of all products which accompanies slow coking time may be undesirable, and the use of some blending agent to increase the size of coke made at faster coking rates may be necessary. 3—When greater yield of coke or its coproducts is needed. Depending upon economic values of the products it may be found desirable to increase the yield of one or the other. 4—When supply of a particular coal must be used, either to protect reserves of high quality coking coal or to utilize a surplus or inferior product not otherwise usable. Many materials have been used for blending purposes, the exact agent to be used depending both upon the condition to be corrected and the nature of the base coal. No universal blending agent that can

Jan 1, 1954

By D. W. Jessup

ONLY during the past few years, have the old-fashioned methods for treating ores and byproducts progressed to any marked degree. The advent of multiple-hearth roasting, blast roasting, the baghouse, and the Cottrell plant indicate this change. It is the ability to roast and smelt sulfide ores and concentrates that gave this later advance. Further investigations that will solve the problem of efficient handling of flotation concentrates and their attendant ills are of the utmost importance. With future developments, the metallurgist will be able to smelt more economically and to treat still more refractory ores, making the early methods appear small by comparison. GROWTH OF SMELTING Well within the memory of pioneer smeltermen, the ore was charged directly into the blast furnace as it came from the mine;, only the richer, ores were smelted, the lower grade and sulfide ores were undesirable. Matte was, at first, thrown away and only two products) were desired-slag and lead bullion. Scores of the early smelting companies failed because of improper reduction of ores, high costs, short- furnace campaigns, inability to treat sulfide ores, and ores containing-zinc. With the failure of weaker companies, consolidation eliminated many others, until today the field is dominated by a comparatively few organizations, each strong financially. Formerly, a few thousand dollars would erect a small plant, whereas the modern smelter costs over a million dollars. Ore and products to which formerly no attention was paid are now treated with comparative ease and at a good profit. Mechanical improvements have modernized smelting, furnace tonnages show an increase, and metal recoveries have made enormous strides. Even though costs have decreased, they have not dropped in proportion to the improvements, because of the higher wages, greater costs of fluxes and coke, more undesirable ores smelted, etc.

Jan 8, 1925

By W. B. Boggs, J. N. Anderson

Originally, the copper produced at the Noranda smelter was shipped in the form of blister bars to the Laurel Hill refinery of the Nichols Copper CO, New York. In 1930 a refinery was built at Montreal East to refine Noranda copper and copper from the Hudson Bay Mining & Smelting Co., at Flin Flon, Manitoba. After investigation of the probable costs of making anodes at Noranda and at Montreal, it was decided to make them at Noranda rather than to continue to make blister bars there. Fuel is a major item of expense in making anodes, and since less fuel would be required in making them from molten copper than from blister bars, a lower anode-furnace cost could be expected at Noranda than at Montreal. Further, the expense connected -with making blister bars at Noranda would be eliminated. The cost of treating anode and wire-bar furnace slags is a serious item in a refinery, and it was found that the cheapest method would be to ship such slags back to Noranda. With the anode furnace at Noranda, much less anode-furnace slag would be made at the refinery. Against these savings effected by making anodes at Noranda must be set the high operating cost of an anode furnace at Montreal, using only tank-room scrap and the Flin Flon copper. This furnace would be handling a comparatively small tonnage and would have a high cost per ton. The usual equipment for making anodes from liquid copper consists of either a stationary reverberatory furnace or a tilting Tacoma-type furnace together with an anode wheel of the Clark or Walker type. The reverberatory type of furnace has been developed from the furnace used in the old Welsh process of smelting and refining copper, while the tilting furnace is a development of the holding furnace, which is essentially a Peirce-Smith converter without tuyeres and provided with burners. Refining as carried out in either of these furnaces is a batch process; that is, several converter charges are accumulated and then refined and cast. Colonel H. H. Stout recently developed in Arizona a so-called

Jan 1, 1934

By P. Somasundaran, Y. H. C. Wang

A detailed study of carrier flotation of kaolin clay using calcite showed the major beneficiation mechanism to be enhanced aggregation between anatase and calcite under intense agitation conditions. To develop an understanding of this selective aggregation, surface charge characteristics of kaolinite, anatase, and calcite were studied under simulated flotation conditions. Zeta potential of all these minerals tended towards a constant negative value in oleate solutions under certain conditions possibly due to adsorption or precipitation of oleate on them. However, whereas the zeta potential of anatase in the oleate solutions was not influenced by the agitation level, that of kaolinite was found to be strongly dependent on the agitation intensity. The effect of oleate on zeta potential of kaolinite was reduced by an increase in agitation intensity. It is suggested that oleate is much more firmly bound to the surface of the anatase and that this preferential attachment is responsible for the enhanced selective aggregation of the anatase with calcite. Agitation level plays a major role in carrier flotation since intense agitation is considered to enhance both the chemisorption of oleate on anatase and preferential detachment of calcium oleate precipitate from the kaolinite surface, all of this producing a large difference in the surface Properties of anatase and kaolinite, and hence in their tendency to aggregate with calcite.

Jan 1, 1983

By C. H. Ferguson

The fact that little if anything has appeared in the technical press or in the Transactions of the Institute on the subject of roll shells proper, used in various grinding appliances…

Jan 1, 1915

By G. R. Speich, S. A. Kulin

R. C. Shnay (Dept. of Mines and Technical Surveys, Ottawa, Ont., Canada)-—The authors are to be congratulated on an interesting and informative paper. However, several questions arise when the isothermal formation of martensite .is considered in relation to the formation of bainite at temperatures near the M, point. The reactions in an alloy and in a plain carbon steel would appear to be comparable; and in the course of a recent investigation of the austenite-bainite transformation in a plain carbon steel,Ia the writer has obtained data at temperatures above and below the M, point. These data are in some respects similar to those of the authors and a comparison would seem justified. The steel used in this investigation had the nominal composition: C, 0.80 pct; Mn, 0.20; and Si, 0.20. The course of the transformation was followed by the use of a magnetic balance. The magnetic moment of the specimen as determined by this instrument is directly proportional to the percentage of the total volume of the specimen which has transformed to bainite. ~lf specimens were austenitized at 1850°F for 4 hr, quenched to the transformation temperature, and quickly transferred to the magnetic balance. Readings were taken at regular intervals until the transformation had stopped. A typical transformation curve is shown in Fig. 9. The preliminary curve preceding the S-shaped curve was found at all temperatures above the M, to around 600°F. Both the extent of this preliminary curve and the time interval between it and the S-shaped curve were found to decrease with increasing temperature as was suggested by Davenport and Bain.14 Therefore,

Jan 1, 1953

The strategy of adjusting operating conditions to maintain optimum process performance as the feed quality varies - adaptive optimisation - is being investigated by computer simulation of chemical processes for the treatment of ores. Those ore-process systems that are most likely to yield substantial benefits from adaptive optimisation are being identified as a guide to the selection and development of systems for practical application. The generalised mathematical representation of the cost structure, ore quality variations, process kinetics, reactor characteristics and operating variables for ore-process systems is described. Results are summarised for temperature, reagent concentration or residence time as the manipulated variable. For almost all systems, adaptive optimisation was economically beneficial, although a few exceptions have been identified where there is a significant synergistic effect between poor-performance and good-performance materials in a blended feed. The sensitivity of the benefits of adaptive optimisation to a range of economic and technical factors is summarised.

Jan 1, 1985

By Anthony Tuke

Members of the Society of Mining Engineers may well regard it as rather unusual that a paper on this subject is being presented by someone whose first taste of mining came at the age of 60 or so - someone who last heard of cathodes and anodes in 1938. On the other hand, the title does refer to the financing of a mine and at least I can claim to have spent all my business life since the war until 1981 in the world of banking, though this inevitably means that I have been used to looking at these and other problems through what you might regard as the wrong end of the telescope. The lending of money, and more particularly the provision of finance for commerce and industry, is the central job of a banker and I have been involved in this in various ways over many years, but regrettably only very marginally in the world of mining. As you will see from what follows, the rather specialised form of finance which RTZ required was, to my regret, not provided by the British banking community since the great majority of the finance came from American banks and, to a lesser extent, from German banks. I am most indebted to Mr. Roy Wright for a great deal of the nuts and bolts in this paper. He was one of the three central figures in the growth and expansion of RTZ during the 1950's and 1960's and was right at the centre of the negotiations with bankers, with governments and with many others. The going, as you will see, was far from easy. The essential basis for the financing of each of the RTZ group's mining projects was a firm long-term sales contract for sufficient of the output of the particular mine to produce the cash flow necessary to service the loans. Wherever possible, loans were raised in the same currency as the sales contracts were made. Each sales contract was designed to give the customer the product he wanted with a long-term assurance of supply and at the same time to give the bankers the protection they required. Thus the marketing concept and the financing concept for a particular mine formed one overall plan, and talks with the customers and the bankers were conducted in parallel until a satisfactory marketing/financial package was agreed in principle. Preliminary talks were begun soon after the discovery of a potentially viable orebody. As confidence about a discovery increased, customers were persuaded to enter into contingent sales contracts before the very detailed and costly business of the economic and technical feasibility study of the mine was launched; such a study might cost 10% or more of the estimated total capital cost. At the same time provisional understandings were reached with the bankers. The contingent sales contracts usually gave a period of grace of eighteen months to two years, during which time the decision whether or not to continue with the mine had to be made. This decision rested mainly on the result of the feasibility study and also on coming to a firm agreement with the bankers. If all went well and the mine went ahead, then the contingent sales contracts became firm, but they fell away if the decision was negative. The Company was fortunate that during the whole period when its major mines were being developed, world trade was increasing rapidly and Japan was becoming a dominant industrial power. The Japanese supported many of the mines, including Hamersley Iron Ore, Lornex Copper, Bougainville Copper to name a few, with the basic long-term sales contracts that enabled their development. The Germans supported Palabora and to a lesser extent Bougainville. The mines were financed as individual projects generally with a loan/equity ratio of about 65/35, without legal recourse to RTZ for the loans. RTZ was, however, responsible for providing any capital overruns required to bring the mines into commercial operations. Nevertheless, the RTZ management regarded itself as morally responsible to the lenders because, Palabora aside, the sales contracts had either a fixed selling price (like Hamersley), an indexed price (like the Elliot Lake Uranium Mines and Mary Kathleen), or a floor price (as in Lornex, Bougainville and Rossing). Thus the Company believed that any financial failure would have been due to poor management or technical

Jan 1, 1985