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By Tuncel M. Yegulalp, Malcolm T. Wane

In general, many problems relating to the exploitation of mineral deposits are probabilistic in nature. This derives from the fact that the geologic universe is inherently random. Probability theory and statistics have been found useful for forecasting the behavior of natural events that occur in the geologic universe. The objective of this paper is to illustrate the application of the theory of extremes to this fore-casting problem. For example, it is customary for design purposes to determine the rupture strength of geologic materials. The theory of extremes is exceedingly useful in describing that portion of the frequency distribution of rupture strength which contains the least strengths. Parameters describing the distribution of the least strengths are more important to the designer of mining excavations than parameters describing the total distribution. The basic principles of the theory of extremes will be detailed and illustrated. Any person required to work in the laboratory of nature is aware that uncertainty is a salient feature of all mining enterprises. A mining engineer required to plan the most efficient, practicable, profitable, and safe mine finds himself face to face with numerous ill-understood and often unquantifiable states of nature. Basic information necessary for adequate planning is often lacking or derived from incomplete tests on samples or experience of doubtful validity. The planning procedure usually takes the form of determining a feasible layout with the intent of determining an optimal layout when and if the necessary details and information become available. The crux of the entire procedure is the choosing of numbers to put into the operational and structural models which encompass the plan. Many times these numbers must be assigned qualitatively from past experiences and are called the "most probable ones." At other times, load records, performance records and material tests provide a basis for extrapolation. In any event, the numbers are chosen from a distribution or set of all numbers. Since each number in the distribution represents a possible state, the choice of any particular value is based upon a decision rule. To illustrate, consider the design of an underground structure or the design of a rock slope. The initial step is the formulation of the various possible structural actions which result from the geometry of the layout. For a given structural model various intensities of behavior are possible depending upon the load, deformation, and material characteristic spec-trums, respectively. Of particular interest to mining people is the failure behavior or condition, i.e., when there is a complete collapse of structural resistance by either structural instability or fracture. A necessary feature of the analysis is the "rupture strength" of the material. Information on the rupture strength is derived from testing either in situ or in the laboratory and the usual outcome is a variation in the test results. The methodology used to overcome this variation is to construct a frequency distribution of rupture strengths, and then determine a measure of central tendency and variability. The main idea involved is that the central tendency number will be used in the failure calculations and the measure of dispersion will be used to estimate the probability of failure. In particular if the distribution of rupture strength is normal, the mean rupture strength is the central tendency number and the standard deviation of the rupture strength is the measure of variability. Suppose the mean value of rupture strength is 1000 psi and the standard deviation is 200 psi. Insertion of 1000 psi into the failure calculation produces results that are unsafe, hence a common decision rule is to reduce the mean value by a "factor of ignorance" so that the failure calculation will produce a "safe result." If two is chosen as a factor of ignorance, this means the value inserted in the calculation is 500 psi or 2.5 times the standard deviation. The next step is to determine the percentage chance that failure will occur from a design created on this basis. Tables on the normal distribution function show that this percentage chance is 0.621% or approximately 7 times out of 1000. In practice, however, the situation is more complicated than represented by the foregoing illustration. The laboratory or field testing program usually constitutes a pathetically small sample of the geologic universe of interest and not enough testing is carried out to determine the exact form of the distribution of the test results. The normal, Cauchy and Student's T distributions are strikingly similar, and it becomes a matter of mathematical convenience to assume the normal law for phenomena which follow other laws.

Jan 1, 1969

By John J. Elango

Strain gage load cells, the most widely used type of nonmechanical weight sensor, are capable of taking measurements between 0.45-4.5 million kg (1-1 million lb) with an accuracy of 0.05%. They are available in a wide range of standard capacities, configurations, and accuracies, and special load cells may be custom-manufactured to meet unusual requirements. Typical applications include automated batch processing, process monitoring and control, mixing of powders and liquids, weighing coal or other materials in silos, and in large platform systems that weigh trucks and railcars. Because the strain gage load cell produces an electrical signal proportional to the applied load, it readily interfaces with readouts, keyboards, computer terminals, and alarm systems.

Jan 6, 1979

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 R. P. Carreker, R. L. Fullman, J. C. Fisher

THE existence of the phase TiAg has not been reported previously. Other investigators have denied the existence of compounds in the Ti-Ag system.13' However, phases of equi-atomic proportion have been reported by Raub, et al.' in the (similar) systems of titanium with gold and copper and zir- conium with silver. Raub's work indicated that titanium and silver are immiscible in the liquid state. No evidence of this was found although a very wide melting range exists which makes the preparation of homogeneous alloys difficult. TiAg is apparently formed by a peritectic reaction between /3

Jan 1, 1954

By K. Reinhardt

THE idea of burning blast-furnace gases directly in gas-engines, instead of under steam-boilers, as had previously been done, was first put into practice barely ten years ago, almost simultaneously in Great Britain, Germany and Belgium. The pioneers of this movement made their first experiments with small engines. After these experiments had given satisfactory results, and it had been shown that the thermal value of the poor blast-furnace gases, in spite of defective scrubbing, could with safety be directly transformed into mechanical work in the gas-engine, there very soon arose a considerable demand for gas-engines of large power, similar to the large steam-engines employed in metallurgical works. In face of these sudden requirements, the gas-engine builders were placed in a difficult position; for up to that time the gas-motor was considered as suitable for small engines only, and it was generally believed that the limit of size bad been attained with 100 to 150 effective h.p. in a single cylinder. Manufacturers of gas-motors, however, did not underrate the advantages offered by this new field for their manufactures, and it so happened that in Germany the Berlin-Anhaltische Maschinenbau-Gesellschaft, of Dessau, was the first to undertake the construction of a 600-h.p. two-cycle gas-engine, with two cyl¬inders of the Oechelhäuser-Junkers type, for the Hoerder Mining & Smelting Company. The engine was started in 1898, and, with a few improvements and alterations, is still working satisfactorily. This engine worked with astonishingly high of efficiency, considering the period. The builders were therefore

Nov 1, 1906

By Richard H. Willey

Efficient handling of large tonnages in open-pit mining demands, primarily, an abundance of well fragmented rock. To accomplish this, a drilling and blasting department composed of a well-knit, versatile group of workers and supervisors must be established. Some costs will remain relatively on the same level over a period of years, while others can be greatly lowered as will be shown. 'The Utah Copper Division, Kennecott Copper Corp., Bingham Canyon, Utah, has been ever alert for improvements in operating methods and equipment to gain increased efficiency and lower costs. Bingham Canyon MIne The greatest dimension of the mine is 8000 ft northeast-southwest with a width of 5000 ft southeast-northwest. From the lowest level, at an elevation of 6040 ft above sea-level, the mountain rises in 27 benches on the west side to W level (elevation 7800 ft) and 21 benches on the east side to Q level (elevation 7460 ft). At the inception of open-pit mining in 1906, the overcapping of leached porphyry had to be removed to reach a commercial grade of sulphide ore. The overcapping or waste now remaining is quartzite with intercalated limestone beds. The limestones are usually soft in nature except in the south-middle portion of the mine where they have been meta-morphized along the contact zone. This area usually gives drilling and blasting operations a great deal of trouble. Here occurs the greatest amount of secondary blasting, as the well-established fracture planes cause the altered beds to break into large boulders. Several massive quartzite "ribs" occur in the overburden, and as a result, the uniform breakage is difficult to obtain. The major quartzite areas have been subjected to complex folding, fracturing and faulting because of the intrusion of the underlying stock. The monzonite porphyry, which carries the commercial values, presents no serious drilling problem because of its softness and extensive minute fracturing throughout the mass. A series of major slips or faults pass through the ore body which, although of considerable advantage to the drilling and blasting department, sometimes works to the disadvantage of the track department. Drilling an11 blasting of the porphyry apparently becomes easier as depth is attained. but highly siliceous streaks throughout the pit still present difficulties. At no place is the rock of such character as to allow excavation without preparations. On certain higher elevations or levels, old fill material can be dug by the shovels, but only at some risk to equipment because of bank slippage. Past Methods At the outset of shovel operations in 1906, drilling was done with the Ingersoll-Rand F-24 piston drill mounted on an un-

Jan 1, 1949

By Leo Wolrnan

IN the relations that exist between capital and labor in this country, there is a bright as well as a dark side. After many years of distressing conditions of labor and a plentiful supply of propaganda, it is doubtful that the doctrine of the class struggle, however defined and stated, has been embraced by any influential and numerous elements of our population. Extreme and uncivilized methods of conflict, whether they be the labor spy as used by the employer or the sit-down strike by organized, labor, have come to be abandoned as the result of the pressure of sober and distinterested public opinion. Unwise terms of our law of trade unions and the unbridled zeal of its administrators show some slight signs of being revised in the light of 'experience and the protests of the law's own beneficiaries. At the point where labor policy touches economic conditions, the two powerful factions in the American labor movement appear to look with a less friendly eye on the bewildering succession of economic experiments and to have a deep nostalgia for a simpler and more prosperous economy.

Jan 1, 1938

By L. S. Cates

THE war is now behind us. We in the mining industry feel a just pride in the part that our industry and our men and our products played in defeating the enemy on the fighting fronts around the world. In five years of mobilization and actual combat, our mines and oil wells produced over 3 billion tons of coal, a billion tons of petroleum, 500 million tons of iron ore, 21/4 million tons of lead, 31/2 million tons of zinc, 5 million tons of copper, 14 million tons of bauxite, 17 million tons of sulphur, 68 million tons of salt, and 3 million tons of potash. It was an unparalleled performance. But what of today? Why the present low production and high costs? Among the black clouds in the mining sky none are so black as that presented by the labor situation. We know it is the result of the legislation and the interpretation of that legislation in the past ten or fifteen years. Since the passage of the Norris-LaGuardia Act in 1932, we have had nothing but a succession of laws, regulations, and decisions that have intensified the strength of the unions and made the operators of the mines and the sources of their financing prartirally impotent

Jan 1, 1946

By Henry R. Piehler

Continuous seven- and nine teen -filament close-packed silver-steel filamentary composites mere tested in tension. For purposes of comparison, the tensile behavior of the composite was predicted from the measured properties of the individual com-ponents. It was assumed that the axial strain is the same in both components and that the contribution of each component to the composite flow stress is proportional to its volume fraction. Good agreetnent was obtained between the observed and predicted tensile behavior. However, the composite elongation at fracture was about twice that observed when the individual steel wires were tested alone. Composites in which the filaments were widely spaced failed by the consecutive fracture of the filaments. In composites with closely spaced filaments, a composite instability preceded frachcre. These effects are explained in terms of a lateral restraint to the necking of the filaments which develops in the deforming composite. TWO-COMPONENT or composite materials are increasingly being developed and used as structural materials. Of all the composite geometries used, the filamentary configuration has proved to be the most successful. Polymer-bonded fiber-glas, the most common of the filamentary composites, has been investigated most extensively to date. One explanation of the behavior of fiberglas1 suggests that the load transfer between the glass fibers and the polymer matrix occurs primarily through friction. Bond separation between the fibers and the matrix is presumed to occur at very low stresses. Subsequently, only frictional bonding can provide for the transfer of load from the matrix to the fibers. The force normal to the fiber-matrix interface which gives rise to this friction is assumed to arise from the matrix shrinkage which occurs during solidification. The behavior of metallic filamentary-composite materials would be expected to differ from that of fiberglas in several significant aspects. Residual stresses resulting from differences in thermal contraction can be kept to a minimum by proper heat treatment. A strong wetted bond is formed between the two phases. In brazed joints,2 for example, the interphase bond is sufficiently strong that the weaker material will fail before separation occurs at the interface. Most metal filaments can undergo appreciable amounts of plastic deformation before failure. Failure by plastic instability or necking frequently occurs in metallic filaments, but not in glass fibers tested at room temperature. Differences between the behavior of fiberglas-polymer and metallic filamentary composites have indeed been observed in composites containing various types of metallic filaments in a silver matrix.3,4 At strains of the order of 10-2 pct, all the deformation was accommodated by the silver matrix. Hence, the strength of the composite depended only on the fiber concentration and not on the nature of the fiber. At higher strains, the strength of the composite increased when filaments with higher work-hardening rates were used. Surface slip line observations on a silver-mild steel composite that had been stretched 4 pct showed that an appreciable amount of deformation occurred in the filaments. Work on tungsten-copper filamentary composites5 has shown that the ultimate tensile strength for varying filament fractions followed a linear mixture rule. Assuming that the axial strains in both filaments and the matrix are equal, this linear mixture rule can be expressed as: The subscripts c, f, and m refer to the composite, filaments, and matrix, respectively. A and V are the area and volume fractions of each component. sc and of are the ultimate tensile strengths of the composite and the filaments. sm is the flow stress of matrix at a strain equal to the elongation at failure of the filaments. However, the tungsten filaments can undergo only a limited elongation before they fracture without an appreciable reduction in area. A composite containing more ductile filaments might indeed deviate from this linear mixture rule for the ultimate tensile strength, since filament failure by necking might be arrested by the matrix. SPECIMEN PREPARATION Specimens were prepared from 0.8 pct carbon steel piano wires of 0.015 in. initial diameter. The wires were given a thin nickel flash and a silver plate varying in thickness from 0.015 to 0.007 in., depending on the filament fraction desired. In order

Jan 1, 1965

By G. G. Griswold, B. S. Morrow

The copper-bearing ores concentrated at the Anaconda plant of the Anaconda Copper Mining Go. are principally a mixture of copper and iron sulfides associated in a gangue consisting of quartz, lightly altered granite and feldspars, with sphalerite and galena and more rarely barite and hubnerite as accessory minerals. The predominant sulfide is pyrite. The copper minerals present are: chalcocite, bornite (erubescite), enargite, chalcopyrite, covellite, tetrahedrite and some tennantite. Normal concentrator practice removes a slime prior to ball-mill grinding. The deslimed ore is ground to approximately 10 per cent plus 65 mesh for flotation. Two selective flotation circuits are used, one for deslimed ore and one for slime. Microscopic studies of concentrator products disclose such an interlocking of copper minerals with pyrite that any material increase in concentrate grade entails additional grinding unless recovery is sacrificed to a considerable extent. During the latter part of 1931 and the early part of 1932 the problem of producing a high-grade concentrate (40 per cent Cu) with at least no

Jan 1, 1935

By CARL B. SNYDER

PERHAPS the most extraordinary thing about business, the trade and production of the country as a whole, is its amazing continuity and growth, its momentum and energy. It goes on year after year, growing steadily, almost without breaks, in spite of every kind of disturbance. We have been grossly deceived into the idea that business is highly variable. We have taken a few things like pig iron, and the like, constructional activity broadly, and imagined that these are a trustworthy measure of trade. Actually they are the worst that we could find. They do not apply to more than 10 per cent or, at the most, possibly 15 per cent of the total of the country's industrial activity. The other 85 or 90 per cent, or even more, goes on growing surely and steadily just like the growth of population and the steady advance in technique, invention, discovery, and improved methods of production Let me give you what seems to me one of the most remarkable examples of this amazing momentum and regularity. You know that 90 per cent or more of the business of the country is done 'by means of checks. About seven-eighths of the total of all checks drawn are reported regularly every week in the newspapers. Let us follow these reports from week to week, just as they come, and plot them up against the correspond- ing weeks of last year, and the year before, and the gear before that, as far back as you would like to go. Take especially the figures for 140 selected cities out- side of New York.

Jan 1, 1929

By Brandon H. Grove

The Zistersdorf field, near Vienna, continues to be Austria's only producing area. During the year the field was slightly extended by Rohol Gewinnungs A.G. in its Rag 2, which in April came in for an initial 120 tons daily through an 8-mm. (0.315-in.) bean, from the twelfth Sarmat sand at 1447 m. (4747 ft.). The amount of fluid produced by this well has remained essentially constant, but after the first several months water appeared and increased to some 50 per cent of the total. TWO subsequent extension wells, Rag 3 and Rag 5, northeast and west of Rag 2, found only water-bearing sands, and drilled through the main fault and into the Flysch at 1683 and 1401 m. (5522 and 4596 ft.), respectively. At the close of the year preparations were under way to deviate both wells away from the fault to test still deeper sands. Within the previously proven area of the field Erdolproduction's Gosting VII came in flowing a maximum of 440 tons daily, the highest individual production yet recorded. This company's Gosting VIII also yielded an initial production of 20 tons daily, and its Gosting XI, drilling

Jan 1, 1938

By Edward B. Cook

INTRODUCTION. THE installation of the Gayley Dry-Air process appealed specially to the management of the Warwick Iron & Steel Co., for the. reason that for fifteen years records had been kept at the works of the company, showing the amount of water entering the furnace in the form of aqueous vapor, and careful observations had been made of its effect upon the working of the furnace. Some years had proved much worse in their effect than others, on account, not only of excessive moisture, but also of great variation in the moisture from day to day, and sometimes within a few hours. It had been found impossible to. make a satisfactory percentage of high-silicon foundry-iron in summer, even on high fuel; and for some years the endeavor had been made so to arrange the sales that, during July and August, only a small percentage of the iron produced would be required to carry more than 2 per cent. of silicon. Our larger furnace, running on basic iron, year after year, produced in February a tonnage 20 per cent. higher than in August, on a much lower fuel-consumption, while, at the same time, the summer months were marked by ? messes," tuyeres closed by slips, and other irregularities, constituting serious additional business losses. It will be easily understood, therefore, that the records made at the Isabella furnace after the installation of the dry blast in 1904 possessed special interest, and were closely watched by us. On the basis of our own experience, we argued that if the moisture could be kept low, and also uniform, the cost of installation would be more than justified. The subject was brought before our Board of Directors in the fall of 1905; and in the spring of 1906 it was decided to install a plant of sufficient capacity to treat 70,000 cu. ft. of air per min., an amount

Nov 1, 1908

T. A. Rickard, Denver, Colorado: The observations made by the author concerning the treatment of gold-bearing ores, deal with the subject only briefly and in a general way; but, coming from an authority, they invite comment. In stating the fact that a " finely-divided condition " is a necessary characteristic of ores containing free gold, the author must be refer ring to those mining districts only with which he himself is ac quainted. The statement would not be true of certain gold-mining regions in America and Australia. The ores of some Californian mines and the mill-stuff treated at certain of the mills of Clunes and Ballarat in Australia, and of Otago in New Zealand, contain the gold in a free but in a coarse state. Moreover, "reduction to fine sand and flour" is not required by certain ores, even though the gold be in a finely-divided condition. In such cases the gold becomes de tached from the quartz before the gangue has been pulverized into particles as small as those in which the gold occurs. The dry-crushing of free-milling gold-ores is onknown in the new mining regions of the world. It is not clear whether the author has in mind any European district in which such a process is in actual use. If he has, a description of the method and the results obtained would be very valuable. Dry-crushing is, other things being equal, twice as slow and twice as expensive as wet-crushing. In the case of free-milling gold-quartz it serves no purpose, since such ore does not carry sulphides which contain any large percentage of value, and which, by being slimed, may carry away part of that value. The dry-crushing of a free-milling gold-quartz would be considered an absurdity by an American metallurgist. If the ore contain "free gold only," why submit it to a further treatment, such as concentration, after its passage over the amalga mating-plate ? What does the author propose to concentrate ? Again, why anticipate the treatment of tailings by the McArthur Forrest, or some other process ? The satisfaction felt by a mill-man in saving gold by a subsequent treatment of the tailings from his mill appears to me to be like that of the man who shoots at a rabbit,

Jan 1, 1894

By M. A. Bryant, J. C. Goodwin, T. B. Faddies, L. D. Kornze

The Mercur Gold Mine is located 56 km (35 air miles) southwest of Salt Lake City in north central Utah; In July 1981 Getty Mining Company made the decision to put Mercur into production. The first gold bar was poured in April 1983. This paper provides details on: 1) the history of the camp, 2) past production, 3) geology of the deposit, 4) the exploration and development program, 5) ore reserve estimates, 6) detailed geologic pit mapping, 7) production blasthole sampling techniques and 8) the use of geostatistics (kriging) in handling assays and gold extractions to produce the required mill feed.

Jan 1, 1985

By J. A. Cordier

USINOR has conducted four blast furnace tests with formcoke made from marginal coals in the pilot plant of HBNPC ("H. B. N." process) in four different blast furnaces of various sizes and with medium and high grade burdens. The tests in which up to 30% of the blast furnace fuel burden was replaced by HBN formcoke yielded good results on furnaces ranging in hearth diameters from 5.6 to 9.5 m. The tests demonstrated that: - the slight increase of pressure drop in the stack did not prevent smooth operation at record production rates with the same blowers - the total coke rate was not significantly affected, but there was a slight increase of the calorific value of the top gas - the hot properties of the formcoke are satisfactory as seen from the samples withdrawn at the tuyeres and tapholes. At the end of the two months test on BE nº 2 of Dunkerque, the hearth was as permeable and clean as with good standard coke. Our conclusion is that HBNPC formcoke made from lean coals is an adequate substitute for conventional coke in the range of 20 to 40% replacement, which is of interest to USINOR.

Jan 1, 1977

By K. A. ACKLEY

The petroleum industry experienced a year of satisfactory accomplishment in Oklahoma during 1945. Crude oil production was increased, a new record for recent years was established in well completions, and refinery operations were maintained at a maximum level. Daily average crude oil production increased to 382,000 bbl., reflecting a 13.5 per cent gain compared with production during the previous pear. Total wells drilled during 1945 amounted to 2556, a gain of 28.7 per cent over 1944 Refinery throughout averaged 187,500 bbl. daily, an increase of approximately 4 percent over the preceding year.

Jan 1, 1946

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

By V. (“Viv”) R. Forbes

[ ] INTRODUCTION "The Liberal Party believes that the State's mineral resources belong to the people of Queensland and therefore it is essential that the state, on their behalf, obtains maximum benefit from the development of those resources." (Liberal Party, 1980 "Mineral Resources Policy" p.2). "Unless sound policies are implemented.... increased production of minerals will benefit only the already wealthy and the lucky few... A resources tax is essential to ensure that above normal profits are shared by the whole community.... Labor policies on taxation must ensure an adequate return from mining developments to the Australian people." (Labor Party Policy Paper, May 1982 "National Issues relating to rapid expansion of mineral production during the eighties". p.1, 37, 47). Judging from these statements, key political parties in Australia believe that mining profits are lightly taxed and that shareholders get most of the benefits. THE REALITY The Government Share of Income statement in Table 1 attempts to measure the government share of the income generated by the "Big Five" Australian mining companies - Broken Hill Pty Ltd. (BHP), CRA Limited, Utah International, MIM Holdings Ltd., and Western Mining Corporation ("WMC"). These companies control over 70% of Australia's mining industry including all the most profitable mining operations. They dominate the mining and processing of iron and steel, aluminum, manganese, coal, oil and gas, copper, lead, zinc, silver, nickel, gold, ferro-alloys and salt in Australia. They are also major world exporters of most of these products. They are thus a representative sample of the profit-earning side of the Australian mining industry. In their two most recent financial years these five companies had income before tax of A$6,980 million. The Government share of this income was A$6,285 million or 90%. The total market capitalisation of the Big Five is about A$8,480 million. (December, 1982). Governments thus consumed the equivalent of 82% of their total value in just two years. This was taking place while the politicians drafted the above statements calling for an "adequate" share for the people.

Jan 1, 1985

By Charles Sanford, William B. Schmidt, Eugene Moroni, John Murphy, Richard Bullock

An industry/government team sponsored by the Dept. of the Interior completed a study tour of the underground coal mining industries in Great Britain and Germany to review new and emerging coal mining technology. The group found that differences in tradition, mining conditions, and industry capabilities have led to different approaches in technological developments, many of which have the potential for application in U. S. mining. Both countries are working to improve materials and procedures for roadside pack wall. The British are developing a pump-packing system in which bentonite, water, stone, and a special cement are pipelined to the pack area to form a low strength compressible pack wall. The German industry is using anhydrite or blotzdammer to form a high strength pack wall. Both countries are using full-face tunnel-boring machines. The German industry has had considerable success with shield-type longwall supports.

Jan 1, 1977