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By L. Dudley Stamp

In my last report on Petroleum in Burma and India1, details were given of production and development up to 1932. It was pointed nut, that the only statements available for Burma were those published officially by' the Government of India in the Annual Review of the Mineral Production of India (Records of the Geological Survey of India), which are issued about 10 or 11 months after the close of the year. Operations in Burma are almost entirely in the hands of three companies—the Burmah Oil Co., the British Burmah Petroleum Co. (with its subsidiary, the Rangoon Oil Co.) and the Indo-Burma Petroleum Co.—and these companies preserve a policy of secrecy, so that details are not available of new wells, depth, wells abandoned, or of other figures, except in so far as the Government considers it advisable to publish the information in its possession. GeneRal Developments in 1933-1934 As predicted in 1933, there have been no spectacular developments and no new fields have been discovered. Nor are there any new indications of a likelihood of fresh discoveries. The policy of extremely careful exploitation. has been continued and intensified; production is being maintained at an almost steady level and can be so maintained for many years to come—indeed, it is the policy of the leading company to permit refinery and local market requirements to dictate the production required. Contrary to experience in practically every other part of the world, India has shown a slightly decreased demand for petroleum products—especially kerosene, but also for gasoline. The increased use of electricity would explain the lower demand for kerosene, but the falling off in the demand for gasolinc can only be attributed, according to the Chairman of the Burmah Oil Co., to the depression and to the incidence of heavy taxation. In India (including Burma) as a whole, production was 305,018,751 Imperial gallons in 1931 (8,714,822 U. S. barrels); 308,606,031 Imp. gal. in 1932; 306,009,022 in 1933 and is estimated at 308,000,000 in 1934.

Jan 1, 1935

Jan 1, 1938

Jan 1, 1938

By John J. McCabe

INTRODUCTION Over the years, Congress has written into the Internal Revenue Code various provisions aimed at lessening at least one financial burden faced by taxpayers in the mining industry - the federal income tax burden. These provisions include the election to deduct exploration expenses, the election to defer deduction of development expenses, and the percentage depletion deduction. Careful tax planning from the very beginning of a mining venture is essential in taking maximum advantage of these tax benefits. A major decision to be made is the choice of organizational structure. (For a more detailed discussion of this subject, see McCabe, John J., "Developing Structures for Investments in Mineral Property," New York University Institute on Federal Taxation, 42 NYU 24, 1984). One such structure is the use of multiple corporations, with mining activities conducted by one corporation and nonmining activities, such as manufacturing, financing and administration, conducted by the other corporation. This technique, which will be discussed in detail below, can be particularly advantageous in delaying recapture of previously deducted exploration expenses and in maximizing depletion deductions. TAX BENEFITS IN MINING Exploration Subject to certain restrictions discussed below, exploration expenditures (i.e., expenditures paid or incurred during the taxable year for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development state of the mine are deductible at the election of the taxpayer (Section 617(a)).* Were it not for this option, exploration expenditures would be required to be capitalized and recovered through depletion, after production begins. Exploration of a mineral deposit can be very costly and may not result in commercial production for some time. If the taxpayer has income to he offset by the deductions, a mining venture can usually be structured in such a way as to allow the offset of mining losses against the other income. With today's high interest rates, this election can be quite valuable in present value terms. Corporate and noncorporate taxpayers are subject to different restrictions on this tax benefit. Corporations may elect to deduct only 85 percent of eligible exploration expenditures (Section 291(b)). (The Tax Reform Act of 1984 reduced this to 80 percent effective for expenditures after December 31, 1984, in taxable years ending after such date). The remaining 15 percent (20 percent after December 31, 1984) is capitalized and recovered at the same rate as five-year ACRS property (Section 291(b)). Individual taxpayers are not subject to this 85 percent rule; however, any amount deducted in excess of ten-year straightline amortization is a tax preference item for individuals (Section 57(a)(5)). Individuals may avoid the tax preference by electing to capitalize exploration expenditures and amortize them over ten years (Section 58(i)). In order to prevent the taxpayer from, in effect, converting ordinary income into capital gain by selling property that has given rise to exploration expense deductions, the Code requires recapture of such deductions upon the occurrence of certain events (Section 617): 1. Upon disposition of the property, adjusted exploration expenditures are recaptured to the extent of gain realized on the disposition (Section 617(d)). 2. If the property is leased, the lessor is disallowed any depletion deduction until his adjusted exploration expenditures have been recaptured in the form of foregone depletion deductions (Section 617(c)).

Jan 1, 1985

By Rossiter W. Raymond

In the course of this address, President Raymond referred to the law, said to have been discovered at the French works of Terrenoire, that the amount of phosphorus may be increased without injury to steel, if the amount of carbon be proportionately decreased. The works named have been for more than a year, it is said, manufacturing in the open hearth, by the Martin process, steel rails containing as high as 0.35 per cent. of phosphorus, with about 0.15 per cent. of carbon, which were not found inferior to Bessemer rails. It is not claimed by the manager of the works that phosphorus is an ingredient to be preferred, or purposely introduced; but only that materials containing it (such as old iron rails, etc.), can be succesfully employed. Other parties have apparently a higher opinion still of the new manipulation, and are prepared to claim for " phosphorus steel" superior qualities. Mr. I. Lowthian Bell alluded to the subject in his recent address as President of the British Iron and Steel Institute, but without expressing a positive opinion. After pointing out that the commercial value of the process turned on the cheap manufacture of ferro-manganese, by means of which only could the necessary amount of manganese be introduced into the Martin bath, without increasing its contents of carbon, Mr. Raymond proceeded to say that the principle alleged to have been discovered at Terrenoire was already known years ago, in this country, at least. Not only had steel been manufactured here, containing high percentages of phosphorus, coupled with low percentages of carbon, and suitable for use in rails, boiler-plates, etc., but the reason of its surprising qualities had been distinctly surmised, if not widely proclaimed. The following analyses and extracts from private letters prove these assertions. Some of them assert a similar principle in .the case of wrought iron; but the analyses, and the remarks based upon them, have reference solely to the steel manufactured under the superintendence of Mr. Slade, at the works of the New Jersey Steel and Iron Company in Trenton.

By Theodore H. Orem

In 1928 Elam,1 discussing the subject of twinning in metals, disclosed that she had observed this phenomenon in aluminum, a metal little susceptible to twinning. The twinning described was one in which the boundary between the twinned portions was not a geometric plane but appeared, in one section, more like a normal grain boundary. Under these circumstances twinning might remain unrecognized by an observer of microscopic sections. She therefore suggested that twinning in aluminum might be much more prevalent than expected. Whereas the parallel composition lines shown in sections of polysynthetic twins were characteristic of the phenomenon of twinning, Elam pointed out that from the absence of

Jan 1, 1963

By P. R. Sperry

A METHOD was recently devised to indicate two or more successive stages of the migration of grain boundaries in aluminum, and to record the direction of the migration. This technique was used for the study of the various types of boundary migration occurring in high purity aluminum.' The method employs alternate annealing and electrolytic etching treatments, repeated as many times as desired. All successive sets of grain boun- dary positions revealed by the various etches appear superimposed on each other. The last etch is designed to leave an oxide film on the surface which is optically anisotropic. The orientation of the oxide film at each point is determined by the orientation of the underlying aluminum grain. When viewed with polarized light using crossed nicols and a Biot-Klein quartz plate, grains with differing orientations appear in different colors, as described by Hone and Pearson.' The last boundary positions are revealed by these color differences. The first step of the process is to obtain a desired starting grain size by annealing, for example, if high

Jan 1, 1951

By P. Schwed

IN determining the mechanism responsible for sintering, the most direct procedure available is the comparison of the observed time and temperature dependence of the process with the dependence to be expected upon the basis of each conceivable mechanism. This was done by Kuczynskil who, in treating the mechanism of surface diffusion, postulated, in effect, that the concentration gradient of vacancies is different from zero only within the neck. This procedure was recently questioned by Cabrera' who assumed, on the contrary, that diffusion occurs only in the region outside the neck. In the present note, the calculations are performed without restriction on the region of diffusion. To carry out this objective it is first necessary to

Jan 1, 1952

By AIME AIME

CONCIDENT with what promises to be a record-breaking year of activity in the world's greatest iron-ore district is the announcement of plans to hold the regional meeting of the American Institute of Mining & Metallurgical Engineers at Duluth, Aug. 12 to 15 in¬clusive. More than 25 open-pit mines will be in operation in Minnesota's great iron-ore district this year, affording to those attending the convention an unusual op¬portunity of viewing practically side by side the interesting activities of power-shovel operations, railway haulage, truck haulage, conveyor-belt haulage, tower-excavator operations, iron-ore concentration, and underground mining. The ore can be followed from the mines to washing and concentrating plants and to the docks and lake carriers on Lake Superior, where an average of one boat of 10,000 tons' capacity will be loaded and depart every 15 minutes, day and night, during the 1941 shipping season.

Jan 1, 1941

By R. Fahn

Bentonites are best suited for the preparation of acid activated clays with efficient adsorption properties. They are weathering products of acid volcanic ashes and natural deposits are spread worldwide. The main constituent of bentonite is aluminum hydrosilicate montmorillonite with a high ability to swell. Physical and Chemical Properties of Montmorillonite The clay mineral montmorillonite is named after its place of discovery, near Montmorillon in southern France. The structure of this clay is shown in [Fig. 1]. The montmorillonite crystal consists of about 15-20 silicate plates. Each silicate plate is composed of three layers. The central one is formed by aluminum or by ferric hydrate octahedrons, the two outer ones consist of silicon dioxide tetrahedrons. In the presence of water, the montmorillonite crystal swells and water molecules become deposited between individual silicate layers. Two types of natural bentonites are known: the Western type, which is a natural sodium bentonite (high swelling grade), and the Southern type, an alkaline earth or calcium bentonite (low swelling grade). Southern bentonites have efficient adsorption properties of their own. They are called natural active earths or fullers earths. Acid Treatment of Bentonite Under the influence of a mineral acid, the exchangeable alkaline earth ions of bentonite are substituted by hydrogen ions. Moreover, depending on the acid concentration, temperature, pressure, and reaction time, a more or less pronounced leaching process takes place. Thereby Al-, Fe-, and Mg-ions are extracted from the octahedron layers. This results in a change in the crystalline structure of montmorillonite and in an increase of its specific surface area and porosity, as shown in [Fig. 2].

Jan 1, 1983

By J. L. Bray

ACCELERATED programs, as discussed in this paper, refer to the year-around operation of a college or university with three sixteen-week or four twelve-week terms per year, with pauses between sufficient only to allow the administrative group to perform their functions. In most engineering schools, under such conditions, the conventional four-year course can be condensed to two years and eight months. These accelerated programs of study, which now exist in most of our technical institutions, were forced upon us under the influence of the outburst of wartime patriotism, perhaps one might go so far as to call it hysteria. Many of us felt and hoped that these programs were temporary expedients, but the cold hard threat of permanency now rears its head; consequently we should examine the merits and shortcomings of the new order, and evaluate its effect on our educational system, since it may persist in some form in the postwar years, because of the changing political and financial situation. Many engineering students are being educated in state supported institutions

Jan 1, 1944

By E. S. Bardwell

DURING the period extending from May, 1922, to September, 1923, the copper-refining furnaces of the Great Falls Reduction Department of the Anaconda Copper Mining Co. at Great Falls, Mont., were operated exclusively with pulverized coal as fuel. The installation was made first as an experiment. It proved successful from the start and was abandoned solely because fuel oil from the Sunburst field became available at a price sufficiently low to make its use desirable from an economic standpoint. The equipment required for pulverized coal has, however, been kept intact and is available for immediate use should the oil supply fail. Inasmuch as pulverized coal had been used on two large reverberatory smelting furnaces and was, at the time we were considering its application to the copper-refining furnaces, being used on the Wedge furnaces roasting zinc concentrate for the electrolytic zinc plant, we were equipped with a coal-pulverizing plant of ample capacity to supply pulverized coal for the furnace refinery. The only problem was to devise suitable means for transporting pulverized coal from the pulverizer plant, located in the smelter building, to the refinery about 1000 ft. distant and about 150 ft. above the level of the pulverizer plant. When studying this installation, it should be borne in mind that the layout represents an adaptation suited to the existing conditions at this particular plant. The installation was entirely satisfactory and uniformly dependable but might be modified to advantage from an operating point of view if an entirely new installation were being planned.

Jan 9, 1925

By E. Gybbon Spilsbury

Everybody who has had his attention turned to the gold-deposits of the Southern States, is acquainted with the undisputed fact of the existence, at least in the Carolinas and Georgia, of enormous areas of gold-bearing rocks. Long before the discovery of the precious metal in California, gold-mining on a very extensive scale mas a well-estab-

Jan 1, 1887

By C. Allen Born

INTRODUCTION As the title of this paper suggests, the author does not believe that risk can be managed. Rather, the objective is to identify the risk which will be present in a given venture and assess the level of that risk which is acceptable. More often than not, the risk which is present is subject to little or no modification. After identifying and measuring the risk a corporation will decide to accept it and proceed in such a way that it will be less exposed, or it will decide not to proceed at all. The exercise for a corporation is different only in degree from everyday judgements made by average people in average situations. However, that word "degree" means that it is considerably more complex on the corporate level. There is good reason for the additional complexity of corporate risk evaluation. The variables influencing a company's decision can be more numerous and the penalties for miscalculation much greater than those normally encountered by an individual. It should be understood that no analysis of risk, certainly not one as brief as the following, can do more than touch on some of the high points. Before examining the sorts of risk which affect the development and operation of specific mines, let us consider the broader aspect of the term with which mining companies, and all other business corporations, must deal. Companies must determine their long-term objectives and strategies within the context of a constantly changing world. To plot their direction they must attempt to read the future by seeking answers to questions such as: How will society evolve? Which businesses will thrive? In which of these should we place our emphasis? If a company hopes to be around five or ten years from now it must make the attempt to answer such questions in order to judge the impact of changing patterns in the evolving business environment. Information is available to allow the lessons of the past to be projected on the future. We have data on birth rates, economic booms and busts, patterns of conflict within and between nations, drought and other forces of nature as well as individual events which cannot be predicted, but which over time, do seem to occur in regular cycles. Ultimately the question "where will we be and what will we be doing a decade from now?" must be answered by one or more senior people with responsibility for the company's future. The compilation and interpretation of hard data by competent support staff, can only be used up to a certain point in determining future corporate strategy since there will be alternative possible futures and a high degree of risk will always remain. At this point those elusive qualities of experience, instinct, and - "gut feeling" - become important factors in choosing a long-term corporate direction. The goals of a company have a significant bearing on its attitude towards risk. This in turn dictates the "hurdle rate of return on investment" which a project decision-maker will require. The hurdle rate is the minimum-discount-percentage-rate applied to forecast cash flows to give a present value of zero to the All-Equity-Funded Investor. The feasibility study for a project is a fundamental tool in the management of risk. An experienced team has an established and well-understood set of ground rules for the preparation and assembly of a feasibility study. The necessary degree of conservation is built in at all levels of study data and, if the project is technically feasible, the hurdle rate becomes a catch-all measure of risk in a base-case project cash flow.

Jan 1, 1985

Take a look at the maintenance force in some of Wyoming's surface coal mines and you'll notice a significant change-the workers are younger than ever and many have had little or no prior experience. The change is quite a departure from industry's previous "experienced only" hiring policy. It results, in part, from a successful training program offered by Casper College in Casper. Wyo..

Jan 12, 1978

By J. T. Duce

There were no important changes in the producing situation in Colombia in 1930, because the emergency bill passed by the Colombian Congress in 1927 is still in effect, and therefore no change has taken place in the law governing petroleum. At the close of 1930 the Colombian Congress began to consider a new petroleum bill. This measure is an improvement on the preceding bills which had been the subject of so much debate in the Congress. However, it cannot by any means be regarded as perfect, and a number of criticisms may be justly leveled at it. The most substantial one probably is that the royalties on public lands, and the taxes on private lands, while apparently low, are deliverable at seaboard, or payable based on seaboard price at the option of the government. If the government exercises its option to take the oil at the mouth of the well, the cost of the transportation figured back into oil is also deliverable to the government. This phase of the law has the effect of making seemingly low royalties a burden on the operator. The fact that taxes on private properties are deliverable in kind is also an unusual provision for which there is no good precedent. The pipe line provisions are also noteworthy, and the government has authority to fix rates and also to deny permits to construct pipe lines for reasons affecting national economy. There are also clauses enforcing unit operation on both public and private lands, and collecting a tax of 1 c. per 1000 ft. of gas wasted. It remains to be seen whether this bill will be enacted, or whether it will be substantially modified. This much may be said, however, that unless it is modified, it will defeat its own purpose; i. e., promotion of petroleum development in Colombia. Company Activities The South American Gulf Oil Co. shut down its operations during the year, and now employs only watchmen at its camps, Las Monas and El Tigre. The Standard Oil Co. of California continued operations on the Coast at Repelon and Gualapa. At the close of the year Repelon

Jan 1, 1931

By Robert L. Haffner

When mining operations of The Eagle-Picher Co. began in the Illinois-Wisconsin zinc mining field in 1949, all underground loading of broken ore and waste was by caterpillar-tracked machines. Beginning in 1956 rubber-tired end-loaders were brought in; ultimately they completely supplanted the tracked units. End-loaders proved to have the mobility needed for the mining conditions and additional merit in auxiliary capacities. Eagle-Picher operates five mines in this area; two are entered by shafts and three by inclined adits. Several ore zones, some of which are attenuated over a considerable distance, are worked from the same entry. Consequently underground haulage roads connecting or following these orebodies have attained great length. In addition, working places are often widely separated because of the character of the mining operations which include pillar recovery and extending haulage connections into old workings. At one mine, the haulage distance is 5000 ft on either side of the shaft, at another the maximum one-way distance is 8400 ft, and at another the present road system of 6800 ft is expected to reach 10,000 to 12,000 ft.

Jan 6, 1962

By D. A. Woodford

A number of observations have now been reported where the steady-state creep rate is apparently linearly dependent on the applied stress at high temperature and low stresses. This results in a creep rate greater than that predicted by extrapolation of high-stress data and has obvious practical implications. However, some of these observations are open to question. For example, the analysis by Harris and Partridge17 of the data of Greenfield et a1.18 was dependent on strain rates which, according to the original authors, were too low to be measured. Dr. Bernstein appears to have demonstrated a linear stress dependence at low stresses in two zirconium alloys. There are, however, a number of discrepancies in his treatment of the data and the subsequent theoretical analysis which require clarification. 1) It is incorrectly stated that steady-state conditions are revealed by a slope of unity on a plot of log i vs log (time). This objection is trivial if the author meant to say a slope of zero, although it is unclear how subsequent extrapolation was made to determine the steady-state creep rates at low stresses for the zircaloy-2. If the plot used was actually log c vs log (time), it is unlikely that a slope of unity would represent a constant creep rate. A plot of log (c - co) vs log (time), where c0 is the extrapolated intercept sf the steady-state creep rate on the strain axis, would have a slope of unity during steady-state creep. However, eo cannot be determined unless is is already known. 2) The author chooses to interpret his results based on the equation: where A, and B, are structure-sensitive parameters, Ql and Q, are the activation energies for the particular creep process, and n describes the sensitivity of the creep rate on stress. The first term represents a slip creep process and the second a diffusion creep process. However, it is stated later that "two distinct processes acting in parallel are involved". Eq. [I] surely represents two processes in series since each reacts to the total applied stress and t, is the sum of the individual creep rates. If the processes are acting in parallel, then the effective stress in each would be less than the applied stress. The component stresses would be given by sl + s2 = a but it is not clear how the magnitude of either, or the corresponding stress exponent, could be determined.

Jan 1, 1969

By Peter Q. Nyce

Law is as old as civilization. In its early stages the so-called law of the jungle, "the survival of the fittest," was entirely operative. Man was quite largely a law unto himself and was likewise his own lawyer. As civilization developed and individuals segregated themselves into bands or communities, man-made laws became a reality, the individual sacrificing certain privileges for the benefit of the band or community in which he was privileged to live. Our present system of law is a continued development of that process. Very early in this development the exigencies of the occasion called into being classes of individuals who were given to study the laws then existing, and this group became known as lawyers. They advised what could or could not be done under existing laws. They were the aggressors in formulating new laws and principles under which the communities must live. Concurrently with the development of the law and the lawyer, the engineering profession was born. In our early civilization, each man was his own engineer; he built his own home, constructed his own bridge, and provided his own means of conveyance. As civilization became more complex, technical study was required to consummate projects and thus meet the requirements of an expanding community. The engineering profession assumed this burden. Both groups were human and thus susceptible to human mistakes and errors. It was Macaulay who said: "The world generally gives its admiration not to the man who does what nobody else ever attempts to do, but to the man who does best what multitudes do well." BiRth of Petroleum Industry In 1859, by the completion of the Drake well in Pennsylvania, the petroleum industry as we know it was born. Its rapid progress since that time has been both extraordinary and remarkable. The zeal of the individual operator to secure all possible oil in the shortest time, even to the extent of bringing into possession a part of the oil underlying a neighbor's property, developed unnecessary drilling, wasteful methods of recovery, great loss of gas, the early abandonment of property with much unrecovered oil thereunder. Such methods, plus

Jan 1, 1931

By C. Richard Tinsley

INTRODUCTION Documentary complications arise from the risk apportionment in project financing which generally means that once the project is up and running and has satisfied the lender's completion test, the loan agreement specifically limits the lender's recourse to the project and its assets. It is the purpose of this paper to describe the special considerations which apply to industrial minerals projects and explore the reasons why so few project financings are negotiated in this industry. SIZE Small projects do not warrant the relatively high costs of negotiating and documenting project financing. The extent of the documentation is directly proportionate to either (a) the degree of risk apportionment, or (b) the amount of control given to lawyers to negotiate the documents. Although one would like to believe that project-finance documentation could be off-the-shelf, it is almost always necessary to tailor the documents to the mine development itself and the individual desires of the borrower. Accordingly, the documentation costs and initial expenses are seldom less than $40,000, and for complex projects can reach $400,000. In addition, banks often charge an up-front fee to partly compensate them for their staff time and partly to increase their yield on what is deemed to be a "riskier" loan asset. Another factor is the generally lower debt:equity ratio when bankers are uncertain of the accuracy of the cash flow projections. The ratio of the amount of cash flow left over after debt service to debt service itself is a key tool for project finance (debt service coverage). Bankers will require a higher coverage ratio for industrial minerals projects because of the relatively higher uncertainties in the following categories: Prices Markets Geology/Quality Transportation Environmental This, in turn, means that lower debt:equity ratios are the norm for new industrial minerals projects. INDUSTRY STRUCTURE It is hardly worthwhile to generalise about a field as diverse as industrial minerals, but there are four other structural reasons why project financing has not been widely applied. 1. The most obvious example is the predominance of small-sized operations, largely a function of transportation economics. Geological conditions also contribute to their dispersion. 2. Often, the product is only a small part of a company's business in contrast to many petroleum, metals, or coal companies whose sole business is the production of the raw material. The construction industry is a good example here for cement, gypsum, crushed stone, sand and gravel, and the drilling-mud services business for barite and bentonite. A company is unlikely to jeopardise its main business through the failure of a project financing on one of its key inputs. The corrollary is that the mined input is often regarded as a cost centre and not run on the sort of economic basis suitable for project financing. 3. There may be a reluctance to reveal key aspects of an industrial minerals venture to an outsider for purely competitive reasons. Unlike the other minerals industries which readily share technical information at plant visits and

Jan 1, 1985