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By R. Stefanko, Y. J. Wang, H. R. Hardy, R. Y. Kim

Since 1964, the Dept. of Mining at The Pennsylvania State University has been carrying out extensive studies associated with the phenomena of microseismic activity and inelastic behavior in geologic materials. Briefly, the program to date has involved the following stages 1) Study of the microseismic noise and energy rates for selected geologic materials under incremental, uniaxial tension.1,2 2) Investigation of the frequency spectra of microseismic activity of selected geologic materials under incremental, uniaxial tension.3,4 3) Investigation of the time-dependent inelastic deformation of geologic materials and the analysis of such deformation in terms of mechanical models.5, 6 4) Simultaneous study of microseismic activity and time-dependent inelastic deformation in geologic materials under incremental, uniaxial compression.7,8 Details of the research involved in stage 4 of the program constitute the subject of this chapter. It should be noted that the majority of the experimental data quoted in this chapter forms part of a thesis to be presented by one of the authors (Kim) in partial fulfillment of the requirements for the Ph.D. degree in mining engineering at The Pennsylvania State University. During the last two or three years, a number of important papers have been published which deal primarily with the fundamental structure and mechanical behavior of geologic materials. Recent papers 9,10 have provided research workers in the rock mechanics field with a meaningful overall picture of rock as a structural material. The concept that many

Jan 1, 1970

By S. James Campbell

Ladies and Gentlemen: Never in the history of our mining industry has the emphasis on public relations been accelerated as much as it has in the last few years. Knowing of your keen interest in this subject I consider it a great privilege that your program committee has asked me here to discuss the crushed stone segment of our industry approach to this important part of our daily business lives. As you are aware, crushed stone operations are present in almost every segment of the country wherever aggregates for construction projects are required. The tonnage of crushed stone produced is second only to sand and gravel - another source of aggregates - and this together with sand and gravel amounts to over half of the tonnage of all mined products in the United States. What is unique about this industry that will be of interest to all of you in analyzing how they have approached Public Relations? The fact that it is so wide-spread is of course obvious, but perhaps a more significant nature of this segment of the mining industry that has brought it more in the limelight of public interest and on a larger scale is the location of a large part of the quarries quite close into the urban area and population centers where you have the greatest demand for aggregate products.

Jan 1, 1969

Prior to 1975, most geochemical drainage surveys for gold were based on analyses for pathfinder elements, such as As and Cu, rather than direct analysis for gold, for two reasons. Firstly, analytical methods lacked the required sensitivity and precision to determine gold abundance at background levels in stream sediments (usually in the range 1 - 10 ppb). Direct analysis was also inhibited by concern about the potential for gross sampling error, brought about by the dispersion of gold as rare discrete particles of the extremely dense native metal. This sampling error, commonly termed the 'nugget effect' has two components: erratic distribution of the element within the stream environment, related to hydraulic factors, and the difficulty in taking representative samples, both in the field and later in sub-sampling for analysis. In more recent years the collection of very large samples was commonly advocated to overcome the sampling problem (Hams, 1982; Nichol, 1986).Two methods have been widely used to evaluate the gold content of bulk samples (Elliott and Towsey, 1989). The preparation and analysis of heavy mineral concentrates has in recent years been largely superseded by the leaching of gold contained in bulk samples by cyanide, commonly termed the BLEG (Bulk Leach Extractable Gold) or BCL (Bulk Cyanide Leach) methods. The terms BLEG and BCL are essentially interchangeable and the latter will be adopted for the remainder of this paper. The strengths and weaknesses of these two techniques were compared with conventional total gold analysis on fine fraction (

Jan 1, 1976

By C. S. Harman, C. A. Enright, J. F. Brune

"The mining environment presents challenging and complex situations for the application of medical care. The combination of remote locations, difficult access and longer response times may create an increase in morbidity and mortality in the event of serious accidents. The U.S Mine Safety and Health Administration (MSHA) has only minimal requirements of first aid training for mine workers. For mine rescue team members, MSHA requires medical training at the Emergency Medical Responder (EMR) level, as only prescribed by mine rescue contest rules. This paper examines, based on mine accident statistical information, whether a higher level of medical training, for example at the Emergency Medical Technician (EMT) or at the Advanced Life Support (ALS) level can better address injuries most commonly disabling or leading to the death of miners in the United States. BACKGROUND Prehospital emergency medical care for the sick and injured has evolved considerably from first inception. Ambulances used to be staffed by persons with little training and equipment and prehospital care was focused largely on the rapid transport of the injured person to a hospital and. The modern prehospital care model was initially developed in military applications, where medics were responsible for some treatment on the battlefield and rapid transport to the care of a physician. In 1965, the National Academy of Sciences and National Research Council Committees on Trauma and Shock published Accidental Death and Disability: The Neglected Disease of Modern Society (National Research Council Committees on Trauma and Shock, 1966). This white paper laid out the consequences of the insufficiency of the Emergency Medical System (EMS) in the United States at that time. According to this paper, in 1965, 107,000 people were killed from accidental injury, with another 400,000 injured with permanent disability. The authors estimated that approximately 50% of ambulance services were provided by local morticians that were not capable of rendering advanced life support. The paper states that, based on experiences in the Vietnam war, seriously wounded soldiers had a better chance of survival in the battle field compared to traffic accident victims with similar traumatic injuries because the military was capable of providing first aid and efficient transportation to emergency care facilities. The white paper states that death rates from battle injuries declined significantly from 8% in World War I to 2% in Vietnam. The publication of this white paper is credited for the broad evolution and rapid advance of the civilian EMS system after 1965. It eventually lead to the creation of the National Highway Transportation Safety Administration (NHTSA) National Standard Curricula (NSC) for emergency medical care in 1985. Training, and therefore required skill and knowledge for prehospital emergency care has continued to grow to reach the current standard."

Jan 1, 2016

By Jerome C. Neyer

Within most of Canada and the northern third of the United States, the soils overlying bedrock are of glacial origin. Tunnelling in glacial soils presents numerous challenges to the contractor, including abrupt changes in soil type, boulders and glacial erratics, water bearing fine sands and silts, toxic or explosive gases, and glacial till. This paper examines the available techniques for geotechnical exploration in glacial soils; the relationship between subsurface conditions predicted by various techniques and conditions actually encountered during tunnel construction; and potential improvements in the planning and implementation of geotechnical explorations. Case histories of geotechnical exploration and tunnel construction in glacial soils are also reviewed.

Jan 1, 1985

By J. Weyer

"Colored gemstones are most often mined in small scale artisanal mining operations. Sri Lanka is well known as source for precious stones since thousands of years. Gemstones are mine in small open pits, directly in rivers (river dredging) and in underground mines. Almost all mined deposits are alluvial deposits. PRECIOUS STONES AND DEPOSITS Precious stones from Sri Lanka are well known for thousands of years. Tales and legends from Arabia, India, China and reports from discoverers like Marco Polo describe the fabulous stones from Ceylon which was the name for Sri Lanka before 1972. Already 1000 BC King Salomon got valuable gemstones from the legendary Queen of Sheba on her visit to Jerusalem. Paintings (frescoes) of the “cloud maidens” with huge gemstones can be seen at the “mirror walls” of the Sigiriya rock fortress - one of the eight World Heritages Sites of Sri Lanka.And even today some of the most valuable and most desired gemstones come from Sri Lanka. The term “Ceylon Sapphire” stands for an excellent royal blue color of high quality corundum from Sri Lanka. Reason enough to look a bit closer how these gemstones are mined. Sri Lanka has rich gemstone deposits which are mined underground, in small open pits or directly within a river. Some of the primary deposits in magmatic and metamorphic rock are also known, but most gemstones are mined in secondary alluvial deposits. Gem bearing deposits can be found in a band from NW to SE. Highly probable deposits and main mining areas can be found around Ratnapura – the city of gems, down to the coast (Matale) and up to the region around Elahera. These secondary deposits are mostly thin layers of gravel and sand, so called “illam”. The depth can vary between some dm to 10 25 m or even almost 40 m. But the average depth is about 12 m. Gemstone mining is controlled, licensed and regulated by a special authority – the National Gem and Jewelry Authority - which was founded in 1993. Another task of this authority is the promotion and development of the gemstone industry and the control of import and export of gemstones. Any violence of the NGJA law can lead to a fine or even up to 5 years imprisonment. To increase the confidence in the gemstone industry the Authority offers a unique service to foreigners. All bought gemstones can be tested free of charge in certain laboratories in Ratnapura and Colombo. So visitors can be sure they got no imitations, wrong stones or even synthetic stones or glass. It was said that detected synthetic stones will be destroyed and the seller will do all he can to replace the stone with the right stone. Otherwise he will lose his license."

Jan 1, 2016

By R. P. Rothwell

AT this our first meeting I beg to call the attention of the members of our Institute to what is certainly a question of the greatest possible importance to the industries we represent; and more particularly to the welfare of the coal and iron trades : I refer to the enormous waste of coal in mining and in its preparation for market, as now practised in our anthracite coal-fields. It is a fact which many of you can certify to, that we are wasting fully one-ha f of all the coal in the veins we are now working, and there are cases, which might be mentioned where this proportion, immense as it is, has been greatly exceeded. The popular belief that our deposits of anthracite coal are "practically inexhaustible," is very far from being founded on facts. On the contrary, supposing the present rate of increase in the production to be maintained, it is probable that a maximum yield for our coal-fields would be attained in about fifteen years ; there are in fact some of our smaller basins where the principal veins are nearly exhausted and the production has already attained its maximum. There are others, again, where the depth attained-and it must be borne in mind that we commenced working at the surface outcrop-moderate though it is (scarcely ever reaching eight hundred feet), has so increased the cost of mining as to imperil the capital invested, and though it requires but little foresight to predict the time when the difficulties of mining will be very considerably increased by reason of the greater depth, greater quantity of water, fire-damp, and other fruitful sources of cost, yet, ignoring these recognized facts, we continue to waste more than one-half of the coal where it is obtained with the least danger, expense, and trouble, that is, near the surface-either above water-level or at a moderate depth below it. The inspection of almost any accurate mine map will satisfy you that, on an average, we leave fully one-third. of the coal in the ground as pillars to support the roof; in some places more than one-third thus remains, while it is very rare that less than one-quarter is left. In almost every case this coal is absolutely lost, for it will very rarely pay to reopen gangways and lay roads to it after that portion of the mine has been abandoned. Is it necessary in all cases to support the roof, and where it is, may not some artificial

Jan 1, 1873

By W. T. Thom

ALL engineering education is faced by certain basic problems, three of which seem to have particular present importance in geological engineering training in general, and in respect to training for oil field geoexploratory work in particular. PROBLEM I The first of these problems has to do with present and future educational objectives and with the numbers and qualities of the men who should be coming out of our geoexploratory training programs. Before the war we needed ever-increasing numbers of graduates at the Bachelor's level and a very much smaller number of men who had reached the Doctorate degree. Now, with more difficult, more extensive, and more costly exploratory work; with a rapid expansion of company "staff" activities, and with the initiation of many new research organizations and laboratories; it is clear that men of exceptional ability will be more and more in demand, and that the schools will need to carry a greater proportion of their students through to the Ph.D. degree. PROBLEM 2 Assuming that the mineral industries will need an increasing supply of well-qualified Ph.D.s for future geoexploratory work (staff, line and research), can the schools expect to provide this supply of able Ph.D.s merely by expanding the proportion of B.S. and B.A. majors who go on through to the doctorate stage of training? And the answer is definitely "No "-as the situation stands at present. Most A.B. graduates are years short of the preparations in basic science and elementary engineering prerequisite to effective graduate study in the geoexploratory fields (paleontology excepted), and similarly many of the annual crop of B.S. graduates lack adequate training in English; in ancient and modern history; and in the modern principles of labor and public relations. Indeed, several basic problems of undergraduate curricular organization and integration remain to be solved before most recipients of a Bachelor's degree will have that sound and broad educational foundation prerequisite to graduate training on a really effective basis. It is for these reasons that we have continued to experiment with our geological engineering program at Princeton, in an endeavor to provide a pilot-plant demonstration of a suitably broad and flexible undergraduate curriculum. PROBLEM 3 But assuming that the schools can and do get undergraduate curricula set up in proper phase and scale to meet needed enrollment quotas for graduate training, what about the most urgent part of our whole mineral-industry educational problem? What about finding and bringing into mineral-industry training those youngsters of superior ability who are, by potential or known inclination, especially well-qualified for geoexploratory work?

Jan 1, 1947

By Emby Kaye

IT is the purpose of this paper to outline briefly some of the considerations that enter into the economics of so-called recycling, the generic designation of the relatively recently developed process by which a condensate† is separated from gas-distillate gas at high pressure and the residual gas returned to the reservoir. This subject necessarily embraces not only a discussion of factors that should be considered in projecting a recycling operation, such as estimating reserves, investment and operating costs, but also a comparison of condensate with other types of petroleum. The place of condensate in its relation to the total supply of crude oil is pointed out as well as certain logical methods of product disposal. The cost of drilling wells and lease maintenance is not pertinent to this discussion because income and revenue are in this paper confined to that retained by the plant or plant operator for supplying processing facilities for the gas. Before the development of recycling a great many gas-distillate gas fields in Louisiana and. Texas provided no income to their owners. When gas was sold from these reservoirs it was accompanied by irretrievable losses of condensate in the formation. The understanding of the function of retrograde condensation resulted in the introduction of a new commercial petroleum recovery process for these hitherto unexploited fields and now permits the conditioning of this type of wet gas field for the sale of dry gas therefrom without waste. SOME ECONOMIC FACTORS The study of a gas-distillate field for possible exploitation necessarily involves the critical appraisal of a number of elements, chief of which will be discussed here: (I) estimate of distillate in place, (2) estimate of distillate that can be brought to the surface, (3) available market, (4) costs. The considerations affecting the estimating of distillate reserves. in place are in the main subject to the same errors as are involved in determining dry gas reserves. Determinable data including acreage, sand thickness, reservoir pressure, reservoir temperature, porosity and connate water provide the basis for calculating the volume of gas in place. Ample allowance must be made for connate water, which may occupy from 20 to 35 per cent of the pore space of the sand. The factor of supercompressibility is to a considerable extent nullified by the reservoir temperature. It has been considered well advised to allow this factor to serve as a cushion. With the gas reserves calculated, it remains only to assay the distillate content of the gas. Those familiar with the handling of "wet" gas at high pressure readily appreciate the variables in sampling gas from

Jan 1, 1941

By AIME AIME

IT IS not necessary to travel hundreds of miles from New York City to see examples of modern mining methods applied in tunnel work. In the various subway jobs, for instance, underground work is done on so large a scale as to justify the oft-quoted remark that here is the world's greatest mining camp. In such cases, however, the size of the excavation makes wholly disproportionate comparison with the haulage drift or adit level of the West. But in West Orange, N. J., Antonio -DiMarco is driving a tunnel from two headings on opposite sides of First Mountain, under contract with the town of West Orange, which is similar in nearly every respect to the type of work that must be done at the mines, and merits description as an example of fast and economical tunnel driving under conditions commonly met with by the mining engineer in more inaccessible parts.

Jan 1, 1931

Amongst representative men directing alluvial mining of erations in Victoria, some difference of opinion exists as to the best system of working the deep leads. The developmental operations of shaft-sinding, extending a reef drive, partially watering and rising up into the wash dirt are practically the same on all fields but subsequent mining is continued either on the Chiltern and Rulberglen or Ballarat systems, the latter being referred to by the Chiltern and Rutherglen miners as the "down country" system. In the former, the leading wash and cross drives are lept from 300 to 500 feet ahead of the reef drive, and in the latter the reverse method keeping the reef drive well ahead of all wash workingsis adopted.In the majority of alluvial mines in the southern and western fields, the initial work of defining the course of the lead is costly, owing to the thick superincumbent layers of hard basalt, to bore which costs from 9/- to 15/· per foot. Unfortunately large sums of money have been wasted in this work, owing to a want of care and knowledge in the selection of bore sites, and improper recording of the strata pierced, thus handicapping alluvial mining and bringing boring operations...

Jan 1, 1902

By Vladimir G. Kochnev

"Autogenous and semi-autogenous grinding (AG and SAG) have been considered a step forward in comparison to conventional grinding circuits with several stages of crushing and using ball (and/or rod) grinding mills. However, existing AG and SAG technologies still can be improved and have an immense potential from the viewpoint of economic benefits.Experience gained by the Technics & Technologies of Disintegration Ltd. (TTD) in the research of grinding processes shows that comminution in AG and SAG mills can be performed in a more effective way. The company’s approach comprises the following elements:- Novel mill design- New liners and lifters- Novel discharge grid design- Technique of treating material of critical particle sizeA novel mill of the cantilever type capable to operate in the AG and SAG mode has been developed. The cantilevertype mill has a high diameter to length ratio, which dramatically increases the throughput rate, and is characterised by high reliability, fast installation and low capital and operating costs.Tests of the new heel-shaped liners, originally aimed at improving the intact condition of diamond, indicated that they play an important role in the grinding process. Tests performed by TTD jointly with ALROSA, MINTEK and Anglo-American Corporation, demonstrated that the heelshaped liners provided the increase in the throughput rate varying from 30 to 80 % and the decrease in power consumption in the range 30-55 % for grinding of kimberlite and platinum-containing ores.Investigation of the influence of the main grid parameters on the efficiency of grinding led TTD to a special design of a mill discharge grid, with a radial location of openings, the slot width varying from the periphery to the centre and the grid surface provided with “heels”. The design allows one to control the particle size distribution of the ground product without affecting the grid throughput rate."

Jan 1, 2003

By A. B. Kinzel

ALTHOUGH vanadium is an important constituent of almost every brand of high-speed steel manufactured today, little is known as to its role in this series of alloys. The now standard 18 per cent tungsten and 4 per cent chromium constituents were the result of developments and improvements before 1903. In that year, vanadium was added to the steel by Dr. J. A. Mathews. This proved to be an outstanding con-tribution, so that the standard high-speed steel of today is generally referred to as the 18-4-1 type-18 per cent W, 4 per cent Cr and 1 per cent V. Various modifications have been attempted, since then, but with the exception of the introduction of cobalt, no striking improvements have occurred. Vanadium has been increased to 2 per cent in many of the common brands, and at least one brand contains 5 per cent V in addition to the usual tungsten and chromium. The carbon has been gradually increased so that it is not uncommon to find 0.80 per cent in the standard grade, although the carbon in the 5 per cent vanadium steel mentioned above is approximately 1 per cent, and even 1.2 per cent has been made experimentally. The role of vanadium has never been well understood, and although vanadium has been increased to 2.5 and even 5 per cent in certain high speed steels, it has not been generally established that the higher vanadium contents 'result in superior cutting properties. However, in all of the investigations, of which the writers are aware, the interrelation of the vanadium and carbon contents was not considered as a prime factor. The carbon content was held at 1.2 per cent or less-generally at the usual 0.65 to 0.75 per cent.

Jan 1, 1932

By Simon Ash

THE coal-mining districts of Washington are mainly west of the Cascade Mountains; Fig. 1. The mines are on the foot hills of the slope, the lignite fields of Lewis and Thurston counties extending into the valleys west of the mountains. An exception is the Roslyn field, a small but important area on the eastern slope. If western Washington is divided into three areas from north to south, the bituminous coal fields and most of the active operations will be found largely in the middle area. The southern portion contains lignites over a large area. In the northern portion, mining is practically restricted to one mine, the Bellingham, which is working a subbituminous coal seam near the city of Bellingham. The degree of alteration that the coal of a particular field has undergone may be gaged roughly by the position of the field with reference to the Cascade Mountains. The lignites of Tenino, Tono, Mendota, and Castle Rock, on the railway line connecting Seattle and Portland, occur in a region, of low relief, in which the Eocene coal measures have suffered only minor disturbances. Subbituminous coals occur in the foot hills, as at Renton, Newcastle, and Bellingham. Coals high in fixed, carbon are found nearer the mountains, where. the measures have been sharply ,tilted and folded, as at Black Diamond and Carbonado. The two typical anthracite fields are located still higher, in the rugged mountains where outcrops appear both in deep gorges and on ridges at elevations approaching 5000 ft. At. Carbonado is found the only semianthracite seam worked on a commercial basis. The occurrence of this seam in a region of bituminous coal is due to the nearness of an igneous sill, which has changed its character from bituminous to semianthracite.

Jan 3, 1925

By Ron Jessulat

"IntroductionBrunswick Mining and Smelting Corp. Ltd. is a IO 500 tid base metal producer. Development is carried out by Jarvis Clark MJM-21 3-boom development jumbos, using Tamrock E400, 410 and 550 pneumatic drills. Typical drift size is 13 ft by 18 ft with a 12-ft advance per round. Blast holes are 1 ½ in. in diameter while reamed holes are 3 in. in diameter. AN/FO is the principal blasting agent, being loaded by C-I-L model60R intermediate loader. The detonators are NONELS and DETINELS. Sulphide dust explosions occur during blasting when dusts from certain minerals such as pyrite and pyrrhotite are ignited by name from the detonating shots. The result is a secondary unwanted explosion with a characteristic shock wave and name front that are very destructive to mine services such as ventilation ducting, electrical cable, and ventilation control doors.A typical reaction in the Brunswick orebody occurs according to the chemical formula:4FeS 2 + IIOs-2Fe2O3 + 8SO2 + 3458--(Enright , 1988)The hematite (FeO3) is deposited as a red dust in the blast area while the toxic sulphur dioxide gas (S00 contaminates the underground workings . The presence of S02 gas disrupts production until it is purged from the area by the mine ventilation system or dissipates slowly in those areas where the vent ducting has been melted by the name front or torn down by the shock wave.Sulphide dust explosions exact a high economic toll. Direct costs in damaged materials and wages are probably exceeded by the value of lost production and disruption to the mining cycle. In addition, the health and safety concerns associated with sulphide dust explosions cannot be ignored."

Jan 1, 1993

By John Nagy

Data from experiments and literature on gas and dust explosions in closed vessels are presented to show the effects of the vessel size and shape; the initial pressure, temperature, and turbulence; and the fuel-air ratio and the strength of ignition source on pressure and rate of pressure rise. An attempt is made to correlate some of these parameters with an elementary mathematical model. Analyses of data on 17 vessels--spherical, cubical, cylindrical, and rectilinear in shape--ranging from 0,018 to 905 cubic feet in volume were made. Although the study was initiated to provide information primarily on dust-explosion phenomena, some data were obtained for gas explosions so that the factor of initial turbulence caused by the pneumatic blast used to disperse dust could be evaluated. The mathematical interpretation of the explosion phenomena was in general accord with the experimental data, and correlation was obtained for several factors affecting explosion development. Neither vessel size nor shape affected maximum pressure (when heat loss was neglected). The rate of pres-sure rise decreased as vessel size increased, and the rate was proportional to the ratio of the surface area of the vessel to its volume. Induced initial turbulence markedly increased the rate of pressure rise and slightly increased the maximum pressure. Changes in initial pressure produced proportional changes in maximum pressure and rate of pressure rise. Initial temperature and maximum pressure were inversely related, but initial temperature had little effect on the maximum rate of pressure rise. Comparative experiments showed no appreciable difference in explosion development of gas and dust fuels. The vessels and experimental work are described, and all data are given in tables. The mathematical model will facilitate extrapolation from laboratory to industrial conditions and will allow comparison of results obtained in different laboratories.

Jan 1, 1971

By Floyd C. Kelley

THE literature of the last decade is rich with information relating to the cause and means of control of grain growth in pure metals, but is deficient concerning the role diffusion plays in grain growth, although during this period many new products that depend on diffusion for their properties and success have been developed. Among these are cementation products, produced by calorizing, chromizing, and carbonizing, or by mixing, pressing, and sintering powdered metals such as Syke's iron-molybdenum die material, Genelite, and Elcon Metal (copper, tungsten) etc. This is a fertile field for new developments, but before it can be utilized to the fullest extent there must be a thorough investigation of the processes by which diffusion and grain growth take place. Grain growth plays no small part in the process and certainly the physical properties of these products depend largely on the grain size and state of equilibrium produced. The field of investigation does not end here, but may be extended to the effect of diffusion on impurities, segregations and dendrites in the broad field of ferrous and non-ferrous metallurgy. A number of years ago the author investigated several of these cases and noted, with striking regularity, the pronounced effect of diffusion in promoting recrystallization and grain growth. An example of this phenomenon is given in his paper on chromizing1 which contained photomicrographs of large radial or columnar crystals produced by diffusion of chromium in the solid state. Another manifestation of this effect was discussed by Austen,2 who showed the part hydrogen plays in the decarburization of steel and the effect of diffusion upon the grain structure. DIFFUSION OF METALS IN IRON It seems to be a general law, whenever two metals are brought into intimate contact at a temperature at which diffusion takes place, that a comparatively rapid, or abnormal, grain growth results. The grains

Jan 1, 1928

By Carl L. Renzoni

INTRODUCTION This paper defines equity as the issuance of a permanent interest in the business on a broadly distributed basis. As such, it excludes the issuance of equity to either a merchant bank or to another corporation. Nearly twenty years ago the equity markets were very simple: The instruments used were primarily common shares, convertible debentures or convertible preferred shares. Another equity-type option often used, especially by junior companies, was the sale of joint venture interests. Issue sizes were generally in the order of $25 - $100 million and issues were syndicated primarily in North America and Europe by one or two investment dealers. Mining corporations today benefit from a market with much more depth. Issues are syndicated by dealers on a truly international basis, and issue sizes now often range up to $300 million. Moreover, dealers are now willing to take significant risk in buying the issues for redistribution. This discussion of trends in equity markets will encompass: 1) common shares 2) warrants to buy common shares 3) convertible debentures 4) commodity backed instruments A review follows of events that affect the mining industry and investment dealers as they have a bearing on the equity markets for the metal producers. FACTORS AFFECTING THE MINING INDUSTRY The current business cycle, up to October 1987, had been characterised by a buoyant stock market and depressed base metal prices. Mining companies entered this period with weak balance sheets and little prospect of cash flows meeting capital needs. The issuance of equity and the sale of assets were used extensively to reduce debt to manageable levels. During this period, the relative high price for gold, and more important, the very high earnings and cash flow multiples afforded to gold producers, caused companies to target gold as the only game in town. The need for capital to acquire and develop gold properties prompted an unprecedented volume of equity issues. (Burns Fry led or co-managed over $1 billion of mining equity issues per year during this period). This high demand for equity capital by the industry prompted an increase in the use of equity instruments, such as commodity backed instruments. In addition, government tax incentive programs in Canada, such as flow-through shares, allowed smaller companies to raise significantly more equity than would otherwise have been possible. Over $1 billion in flow-through equity was raised in 1987 alone. The abundance of flow-through capital in Canada made it easy to form a new company. One flow-through share fund developed a system of providing the working capital required for a company to be eligible to receive flow-through share capital so that an entrepreneur required only a mining property to get started. Many new companies were formed and several flourished in a buoyant stock market environment to the point that market capitalizations grew to $100 million or more. The current period is in stark contrast to that before October 1987. The equity markets are generally available to the resource industry only on a window basis and only for senior companies and for special situations. The industry is benefitting from buoyant metal prices, and bankers are anxious to provide debt capital. Investment dealers previously processing several equity issues

Jan 1, 1990

By Michael Bradbury

INTRODUCTION A major change in financing exports in recent years has been the decreased importance of subsidized export credits, following the commitment of the OECD countries to eliminate the subsidy element. Subsidized export credit rates are now often more expensive than market rates as the financing for exporters has decreased in volume and importance. The forfait market, in recognition of this decreasing importance, provides a rapidly expanding source of nonrecource finance for exporters. The following is a step by step guide to what it is, how it works, its benefits and problems. WHAT IS FORFAITING? Forfaiting is not new. It has been used in Europe for about 25 years to provide export finance for both capital goods and commodities without recourse to the exporter. Although long the preserve of exporters in Germany, and more lately Italy, forfaiting is now used increasingly by exporters in Great Britain, the United States, Canada and Scandinavia. It is a fairly simple operation with easy straight-forward documentation. The transaction involves the purchase by the forfaiting bank of a bill of exchange or a series of bills without recourse to the exporter. These bills will have been drawn by the exporter, accepted by the importer, and will usually bear the unconditional guarantee of the importer's bank. They are normally drawn payable at intervals during the credit period agreed between importer and exporter and are purchased at a discount by the forfaiter. The exporter thus obtains his cash payment and the importer receives his credit period. The forfaiter collects the amount of the bills as they mature directly from the importer. Credit periods vary, depending upon the type of goods and the country and commercial risk of the importer. The period is generally between one and five years with six monthly maturities. The usual forfait currencies are US dollars. Deutschmarks and Swiss francs and others, such as sterling, French francs, and the Scandinavian currencies are being used more frequently. CHOOSING FORFAITING Most types of financing require the continued involvement of the exporter in the financial side of the transaction during the credit period. Forfaiting has certain comparative advantages. In particular, it is possible to forfait 100 percent of the risk without recourse to the exporter, unlike government sponsored export finance schemes, where some retention of the risk by the exporter is required. In addition, exports from country sources do not present problems and forfaiting can also cover trade within the EEC. Other benefits for the exporter are: (a) The exporter's balance sheet is improved; debts are turned into cash thus improving the liquidity of the company and enhancing its cash flow. And there are no contingent liabilities for bills of exchange. (b) If the sales contract is in a foreign currency forfaiting removes the risk to the exporter of adverse movements in foreign exchange during the credit period. (c) Fluctuations in interest rates during the credit period can be ignored since in forfaiting the transaction is usually done on fixed interest rate terms on a discount basis. (d) The political and transfer risks are taken by the forfaiter. (e) The commercial risk is taken by the forfaiter. (f) The costs of administration and collection etc. during the credit period are removed.

Jan 1, 1985

By Haydn H. Murray

In 1967 a large kaolin deposit was discovered on the Jari River, a tributary of the Amazon, in the territory of Amapa in Brazil. The kaolin occurs in the Barreiras Series of Pliocene age and is part of the Belterra Clay. The kaolin was drilled and tested, and today a modern processing plant is producing over 150,000 tons per year of high quality paper coating clay. Some of the problems associated with the mine development, processing, personnel, and marketing of this remote kaolin deposit are discussed. The mineralogy and physical properties of the Jari kaolin deposit are also described.

Jan 1, 1981