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Born, March 28, 1853 Died July 23, 1916 On July 25, 1916, the Board of Directors adopted the following minute and directed that it be entered upon the records of the Board & published in the Bulletin of the Institute, and thereof be sent to the family of Mr. Kirchhoff: Charles Kirchhoff was one of the oldest, most widely known and most highly esteerned members of the American Institute of Mining Engineers. On his return in 1875 from a European course of study, to begin a highly successful professional career, he joined the Institute, then just commencing to acquire both national and international recognition. He became at once, and-for more than 40 years continued to be, its earnest , and active supporter, serving it as Manager, Councilor or Director for terms aggregating 9 years,-as Vice-President for 2 years, and twice as President for a year. During the critical period of the erection of the United Engineering Society's building, and the transfer of the Institute to permanent head-quarters therein, Mr. Kirchhoff was its efficient representative in the United Engineering Society, and on the Building Committee. In 1910, amid the congratulations of colleagues, employees, and innumerable friends, Mr. Kirchhoff retired from active business as Vice- President and General Manager of a great technical publishing company. Yet he sacrificed of his well-earned leisure yet one more year, to serve the Institute as President through 1911.

Jan 9, 1916

By H. E. Criner, M. G. Driessen

THE cyclone thickener has two important applications in wet washing plants: (1) water clarification, and (2) fine coal recovery. The thickener consists of a conical chamber into which the fluid is injected through a tangential nozzle at the periphery of the large end. The solids of the slurry are concentrated and removed from the apex of the cone while the "thinner" portion is discharged from a central tube in a flat head at the large end, fig. 1. The advantages of the cyclone thickener are that large volumes of slurry may be treated with small space requirements and that the underflow concentration may be controlled easily and readily to meet varying feed conditions. Control of Washery Water Solids Concentration: The first requirement, in the process of controlling solids concentration, is that the solids be removed from the body of circulating water at the rate at which they are introduced. If this condition is satisfied the concentration will remain at a fixed value and will not increase to uncontrollable levels. The second requirement is that the solids concentration

Jan 1, 1951

By M. G. Driessen, H. E. Criner

THE cyclone thickener has two important applications in wet washing plants: (1) water clarification, and (2) fine coal recovery. The thickener consists of a conical chamber into which the fluid is injected through a tangential nozzle at the periphery of the large end. The solids of the slurry are concentrated and removed from the apex of the cone while the "thinner" portion is discharged from a central tube in a flat head at the large end, fig. 1. The advantages of the cyclone thickener are that large volumes of slurry may be treated with small space requirements and that the underflow concentration may be controlled easily and readily to meet varying feed conditions. Control of Washery Water Solids Concentration: The first requirement, in the process of controlling solids concentration, is that the solids be removed from the body of circulating water at the rate at which they are introduced. If this condition is satisfied the concentration will remain at a fixed value and will not increase to uncontrollable levels. The second requirement is that the solids concentration

Jan 1, 1951

By Walter W. R. May

FOR more than 25 years a few business men who represent virile private enterprise in the Pacific Northwest have been trying to awaken the community to the potential benefits of an open Columbia River. No threat of government com- petition then hung over the industry, which was adjusted to state regulation. Numerous sites were engineered and the findings were laid before the operators of heavy industry in the East, Middle West, and South -even of Europe. These engineering data became, if not the basis, the inspiration upon which the U. S. Army Engineers eventually were to "build the Columbia River Bible" - their great document known as House Document 103, the report on the Columbia River and minor tributaries.

Jan 1, 1940

By Edwin Berry

THE consideration of the present value of a mine is of great importance when planning for the operation of a property,, and it is particularly so in the case of mines that have large ore reserves. At various times during the past 15 years, the writer has had occasion to make rather thorough studies of the subject, and has been greatly impressed by certain important points which these studies have brought out, points which, though they may be well known, are often lost track of in the rush to obtain low mining costs and high daily tonnage output. . It is the object of this paper to present briefly, and in a general way, some of these points, and especially those which have to do with the relationship which (1) ore reserves and plant capacity, (2) grade of ore mined, and (3) ore losses in mining, bear to the present value. Present value, sometimes called present worth or actuarial value, means the value today of the future earnings of an enterprise. Great industrial, manu-facturing or railroad enterprises, if properly handled, go on indefinitely and their value is directly dependent on their estimated annual earnings. Mines, or oil properties, on the other hand, have an earning capacity only until the ore or oil is exhausted, and their present value is dependent not only on their annual earnings but also on their life, which is the length of the period over which they can produce at a profit. A mine, or an oil property, is a "wasting asset," while an estab-lished manufacturing business is not, or should not be. In other words, the present value of a mining property. represents a sum of money on which there could be paid from operating profits a determined rate of interest, say 8 per cent., and in addition an amount which, if invested at compound interest as received, would at the end of the life of the mine pay back the present value. In his "Wealth and Income of the American People," Walter Renton Ingalls says: "The fundamental principle of mine valuation is the present worth of an annual dividend accruing during the period of years corresponding to the life of the mine."

Jan 7, 1922

Jan 1, 1962

By J. F. Butler, H. W. Paxton

The vapor pressures of manganese in equilibrium with several alloys in the iron-manganese-carbon system between 1200° and 1275°K have been measured using the Knudsen effusion technique in conjunction with a vacuum microbalance. The effect of orifice area of the effusion cell upon the measured pressure has been determined. The binary iron-manganese system shows small negative departures from ideality, and the system of mixed carbides, (Fe, Mn)7C3, in equilibrium with graphite behaves ideally. THIS work is a continuation of the investigations in which the Knudsen effusion method has been used to determine thermodynamic activities in systems and at temperatures of interest to metallurgists. In a previous publication,' the free energy of formation of Mn7C3 was determined and some preliminary work on the solution behavior of this carbide with the hypothetical "Fe7C3" was reported. The present work deals with this latter topic and also includes data on the binary ir-on-manganese system. EXPERIMENTAL METHOD The Knudsen effusion method was used to measure the vapor pressure of manganese in both the alloy and carbide sections of this investigation. This dynamic method of vapor pressure measurement presents a problem when studying solid alloy systems in which one of the components has a much larger vapor pressure than the others. Over-all depletion of the alloy in the most volatile component will occur during evaporation so that the pressure of that component will decrease. Even more serious than the over-all concentration change is the surface depletion of volatile component in the alloy brought about by the slow rate of diffusion of this component from the interior to the surface of the solid particle. Since knowledge of this surface composition is necessary in order to relate it to the activity determined through the measurements, changes in surface composition from the analyzed bulk composition are to be avoided in dynamic vapor pressure studies of solid alloys. The system under investigation in this study presents the problem of surface depletion of manganese since its pressure at 1230°K is 105greater than iron and 1020 greater than carbon. Since the existence of a volatile manganese carbide had been ruled out previously,' the high manganese pressure relative to iron and carbon insured that the only species leaving the effusion cell was manganese. Therefore, the effusing species required no analysis so that the manganese pressure was determined directly from the weight loss of the effusion cell. In order to detect small weight losses near the beginning of effusion, a vacuum microbalance was used to weigh the cell continually. These initial weight loss data allowed the rate of manganese effusion to be determined before the surface of the alloy became depleted in manganese. The apparatus used in this investigation is shown in Fig. 1. Temperature was measured using chro-

Jan 1, 1962

By H. J. de Haan, J. van Lookeren

In view of their size and favorable characteristics, Shell's heavy-oil fields on the eastern coast of Lake Maracaibo, Venezuela — known as the "Bolivar Coast" — are obvious candidates for the application of thermal recovery methods. During the last decade various methods have been tested, such as steam drive,', steam soak and in-situ combustion.3 Steam soak was discovered as a promising production method rather accidentally in 1969, during early steam drive testing in the Mene Grande Tar Sands1 When steam erupted at the surface due to breakdown of the overburden, the injection wells were back-flowed to relieve the reservoir pressure. This resulted in high oil production rates, all the more impressive because the reservoir is unproducible by primary means. It was concluded that injection of limited amounts of steam might be a very effective method for stimulation of heavy-oil wells. To obtain information that would be more widely applicable, testing of the process was continued in the eastern part of the Tia Juana field (Fig. 1). Here even more favorable results were obtained than in Mene Grande. This created sufficient confidence to prompt a large-scale project, which was considered essential for an adequate evaluation of ultimate recovery, steam requirements, mechanical problems and economic prospects. To obtain an early answer on the ultimate recovery a fairly depleted area was selected in the western part of the same field ("A" in Fig. 1). The first steam was injected in March, 1964. This paper describes the performance until the end of 1966. The production mechanism and well inflow performance are discussed in some detail. In view of the favorable results obtained so far, steam soak operations have expanded considerably since the start of this project. Presently, five other projects are under way, of which two are about the same size as the one under discussion, with further extensions being programmed. Description of the Project Reservoir Data Shell's part of the Main Tia Juana reservoir has a proven area of 8,800 acres and an average net oil sand thickness of 130 ft. It contained an initial quantity of 2,750 million bbl of stock tank oil (STOIIP), with an API gravity ranging from 10 to 15 API and a viscosity of 100 to 10,000 cp (at 122F). As a geological unit it is known locally as the Lower Lagun-illas member of the Lagunillas formation, which is early Miocene in age. The sand bodies are believed to be distributary channel sands deposited in a lower coastal plain. Most of the channel sands have lateral and some vertical communication. The field was developed mainly in the period from 1936 to 1950. The ultimate primary recovery is estimated at 18.1 percent of STOIIP, of which 12.5 percent STOIIP had been produced by the end of 1963 from some 540 wells. By then the average pressure had decreased from an initial value of 960 to 550

Jan 1, 1970

By C. G. Wilson

DURING the course of some experiments on the plastic deformation of gallium a standard stereo-graphic projection was prepared with (001) at the center and it was felt that this might be useful to others working with single crystals of gallium. The stereogram, given in Fig. 1, was made using the following crystallographic data (Bradley, 1935):

Jan 1, 1962

By Pervez Patel, Martin G. Frohberg, Demetrios Papamantellos

Model experiments were carried out on the mass transfer of iodine between n-hexane and a 4 2 X 10-3 M aqueous sodium hydroxide solution. The influence of mechanical stirring by means of small gas bubbles (ca. 0.01 ml in volume) on mass transfer was examined in independent experiments. The results were described with the help of the penetration theory and in the case of bubble stirring with the help of a mathematical model based on this theory. S LAG-METAL reactions, especially those in steel-making processes, often occur under conditions where gas is evolved in the form of bubbles that break through the slag-metal interface. It is known that stirring by means of bubbles increases the mass transfer coefficient, but there has been very little quantitative work done in this field. Because of the difficulties that attach to experimental work at high temperatures this study was confined to model experiments at room temperature. EXPERIMENTAL APPARATUS The transport of iodine from an n-hexane layer into a weak sodium hydroxide solution was studied a) with stirring by means of bubbles and b) with mechanical stirring. The apparatus for the experiments with bubbles consisted of the cell, two Dreschel bottles filled with hexane in order to saturate the nitrogen flow, one flow meter, and a nitrogen gas cylinder fitted with a fine-regulating valve. Fig. 1 shows the cell consisting of a glass cylinder 33 cm in height with an overall diameter of 7.5 cm embedded in a copper flange. The flange is connected to a Plexiglas plate and to the gas inlet. The Plexiglas plate has holes of 0.2 mm diam bored into it which are spaced 1 cm from each other. For the experiments with mechanical stirring the bottom of the cell was sealed off by a Plexiglas plate. The upper layer was stirred by means of a glass stir-rer and the bottom layer with the help of a magnetic stirrer in a counter rotatory direction. Both stirrer speeds could be varied continuously. EXPERIMENTAL PROCEDURE Iodine dissolves in n-hexane producing a stable violet color thus enabling the iodine concentration in

Jan 1, 1970

By P. J. Closmann

Steam zone growth as a function of time has been calculated for the case of constant rate steam injection into a preheated reservoir. To simplify the calculation a linear temperature profile has been assumed in the cap and base rock at the start of steam injection. The results indicate that at early times augmentation of steam zone growth due to preheating should be greatest. At longer times the steam zone development becomes close to that calculated with no preheating. INTRODUCTION With the increasing application of thermal recovery processes to recover viscous oil, cyclic steam injection has become important in many large-scale projects. In this process, the cycle of steam injection followed by oil production is repeated a number of times. At the beginning of the second and later cycles, steam is injected into a reservoir that has already been heated but that has lost part of its heat both in produced fluids and by conductive heat loss away from the injection zone. In such a case, the temperature level of the injection zone and the temperature distribution of the surrounding rock will affect the growth of the steam zone developed during the subsequent steam injection. Knowledge of the size of steam zone developed is important in determining the amount of oil displaced and the extent of heating in the reservoir. It is also useful to be able to compute the size of the steam zone for cases where thief zones take most of the injected steam. This paper presents a fairly straightforward method of estimating the steam zone developed in a preheated formation, based on certain simplifying assumptions. Some cases of steam injection into a reservoir at its original temperature have already been considered elsewhere.1-3 Because it is difficult or impossible to obtain an accurate representation of the temperature distribution in the reservoir some time after initial heating has taken place, in this work, a linear temperature profile in the cap and base rock is assumed (Figs. 1A and 1B). The linear profile has the advantage of yielding heat flow equations that

Jan 1, 1969

Who's Who in Mineral Engineering - The 1979 Directory of the Society of Mining Engineers of AIME

Jan 7, 1979

By H. Linder, W. H. Dennen

The graphitic carbon content of soils may be used to detect and delimit subsurface graphitic zones. Spectrographic measurement of carbon in C horizon soils from several areas in the northeastern United States shows good correlation with known graphitic bodies. Bodies of graphite and sulfides are readily located by electromagnetic prospecting methods, but these methods cannot generally discriminate between them. Usual practice, therefore, requires follow-up work on electrically anomalous areas by trenching, drilling, or soil sampling in order to determine the mineralogical nature of the conductor. The efficiency and cost of such follow-up is consequently an important factor in prospecting. The presence of buried sulfide deposits is often reflected in concentrations of metals in the superincumbent soil. Simple chemical tests for such metal concentrations have been developed and applied with considerable success. Bodies of graphite or mixtures of graphite and sulfides are, however, very common and a means whereby buried graphite could be detected by soil testing should provide valuable additional information in the search for ore sulfide and graphite deposits. Graphite is a notably stable substance and should persist in soil above graphite-rich horizons. Microscopic examination of soil samples high in carbon, however, failed to reveal any recognizable graphite fragments indicating a grain size in the clay range. Presumably such small particles would have some mobility in a soil by a translocation mechanism similar to that proposed for the movement of clay particles in a soil profile. Experimental data supports this idea since the boundary between background and anomalous soils carbon values is quite sharp, but the anomalous zone is slightly broader than the graphitic source rock. A simple spectrochemical technique for the determination of carbon in geological materials has been described by Dennen,1 and may be directly applied to soils. A modification of this technique which employs an arcing chamber through which nitrogen is passed is recommended to decrease contributions from atmospheric carbon dioxide. Tests indicate that soils over graphitic zones may be strongly enriched in carbon. The spectrochemical determination of carbon depends upon the formation of the cyanogen molecule (CN) from carbon in a sample and atmospheric nitrogen, under the high temperatures associated with a dc arc. Samples for analysis are dried, lumps broken, and screened. A small portion of the -100 mesh fraction is packed into a copper electrode and excited as the cathode of a dc arc. The band spectra of cyanogen are recorded photographically and the density of the bandhead CN 3883A is measured. The limit of detection of the method is about 0.01 pct C and its coefficient of variation is about 15 pct. Soils, of course, contain carbon in other forms than graphite, and the amount of interference from such sources was examined. The C horizon of several soils from Massachusetts, Maine, and Pennsylvania were found to have a carbon content of 0.3 to 0.5 pct by weight. This content is chiefly due to the presence of carbonates and vegetable matter in the sample and may be readily eliminated, or at least

Jan 1, 1961

By P. Niessen, W. C. Winegard, C. J. Beingessner

DURING the last 10 years, several grain-growth studies have been made using zone-refined metals with controlled amounts of solute to elucidate the interaction of solute with moving boundaries. In all these studies, it was more or less implicitly assumed that the alloys used were, after recrystallization and grain growth, homogeneous within the grains with respect to solute and lattice defects. This note deals with observations made on microstructures originating from solidification of dilute alloys and from grain growth. Briefly, the experimental procedure used in these studies was the following: zone-refined cadmium and master alloys were melted and cast in Pyrex under vacuum to produce bars 14 mm in diam and about 150 mm long. These bars were cut into 8-mm-thick slices which were mechanically and chemically polished. The specimens were then deformed 30 pct in compression and given a 1-week anneal at 260°C in argon. After this anneal, a second deformation produced completely recrystallized samples 4 mm thick. The time-temperature controlled anneals were carried out in a bath of silicone oil. After the grain-growth anneal, the specimens were polished in Gil-man's' solution (33 g CrOs, 6 g NazSO, in 100 ml of water). Several etches were used depending on the alloy investigated, but mostly a mixture of concentrated HC1 and HNOj (98:2 vol) was employed. In all the alloys examined, the ease with which substructures could be revealed depended strongly on the crystallographic orientation of the surfaces of the grains. However, very frequently the microstructures to be discussed here etched up over broad areas comprising several grains. Fig. 1 is a micrograph of a Cd-0.05 at. pct Mg alloy annealed for 100 sec at 270°C. Different substructures are seen in this photograph. A denotes the now existing grain boundaries. The well-defined lines and points marked B are the remains of a solidification substructure. The lines are boundaries between cell colonies, and the points are nodes located on regular two-dimensional cells. This cellular structure has the same appearance as that found by weinberg2 for rapidly quenched Zn-Au alloys. The "ghost boundaries", marked C, are very similar in appearance to a grain boundary array in a polycrystalline sample. Repeated polishing and etching showed that all the substructures observed were three-dimensional. To date, the ghost boundaries have been clearly observed in all samples containing 0.005, 0.01, 0.05, and 1 at. pct Mg, and in samples containing 0.01 at. pct Zn. Attempts to outline these ghost boundaries in cadmium alloys containing 0.01 at. pct Ag and Au were only partially successful. In these alloys, parallel lines, having a resemblance to the ghost boundaries in the Cd-Mg and Cd-Zn alloys, were observed, but it was not possible to obtain complete arrays of ghost boundaries which extended over several grains. It is possible that a different etch than that presently employed would reveal the ghost boundaries in the Cd-Au and Cd-Ag alloys as clearly as in the Cd-Zn and Cd-Mg alloys. A close examination of the ghost structure showed that it consisted of linear etch-pit arrays, Fig. 2. The ghost boundaries were resolvable even in grains which showed over-all faceting due to the etching, as seen in the corner of Fig. 2. The general appearance of the ghost structure suggests that it originated during grain growth. This is supported by the observation that the mesh width in the ghost-boundary array generally increased with increasing final grain size. To test whether the ghost structure was formed during the long homogenizing anneal or during the grain-growth anneal, some as-cast samples were deformed and given a grain-growth anneal. This anneal was terminated by air cooling or

Jan 1, 1967

By G. Beghi, G. Piatti

THE authors examined the problem of the gradual transformation of Al2O3 from the transition phases normally encountered in SAP (r -x-n)1-3 to the stable a phase. This phenomenon is well-known at temperatures above the melting point of aluminum,3"6 whereas in this paper the transformation was studied at temperatures lower than the melting point of the aluminum matrix.

Jan 1, 1967

By C. E. Gerity

Near Bunker, Mo., in the New Lead Belt, Ozark Lead Co. operates a 6000 tpd lead-zinc mine. Mined ore is transported to the surface in three mechanized and automated steps. The mine is developed by a rectangular-shaped sublevel haulage drift 15 ft high by 28 ft wide, driven on strike below the ore zones. Ore transfer raises were driven from the sublevel at locations near the shaft, 1500 ft distant, and on subsequent 1000 ft centers. These 6 x 5-ft raises are slashed to obtain maximum storage below dump points. These dump points are located on each mining level and are of steel and concrete construction. Spiral 12 X 24-ft inclines driven from the sub-level provide access to these levels for equipment and mine utilities.

Jan 11, 1972

By Percival Roberts

I DESIRE to present this evening a few notes from the standpoint of a manufacturer upon the subject of tests of iron for structural purposes; not that I have any new facts to which to call your attention, but rather a statement of a few of the objectionable features of the present modes of operation, showing the absolute necessity of important and very radical changes. At the present time, as most of you are well aware, proposals for materials are accompanied by certain specifications as to quality and tests to which the manufactured article must conform. Evolved in many cases from the inner consciousness of some one more expert in theory than in practice, we find a few of the specifications to be good, many bad, and some indifferent. Appended are specimens of specifications of the most prominent engineers and railroad companies, which may be taken as representing the best and most intelligently framed specifications which we now have, arid yet in some pints scarcely satisfactory, owing to misunderstanding of tests as now made. To show the very varied opinions held as to proper quality of iron for bridge-work, I give the tests of two lots of fron made by inspectors with the results, which were referred to the maker with the following commensts : Lot No. 1. Teat of Iron for Eyebars. Reduced area. Elongation. Size. Per cent. Per cent. Breaking load. 4" x 1 3/8 26 25 68,500 Bent 120° around 1 1/2" bar with fracture. Reduced area. Elongation. Size. Percent. Percent. Breaking load. 6" x 1 7/15 24 24 48,820 Bent 110° around 2" bar. This iron should bend 180° without fracture, and is therefore rejected. Lot No. 2. Test of Iron for Brirlye. All measurements taken upon a parallel section of 10". Iron for tension members. Breaking load Elongation. size. per aquare inch. Percent. 1 5/8 49,600 20 14 61,600 27

Jan 1, 1882

By Basil B. Zavoico

CRUDE oil production in the United States during 1938 reached approximately 1,214,355,000 barrels, an average of 3,327,000 barrels per day, or 5 per cent below the 1937 record output of 1,279,160,000 barrels. The decreased production did not prevent the stocks of all products from increasing to a total of 575,954,000 barrels by Sept. 30, an increase of 10,957,000 above the total on Jan. 1, or an average daily storage increase in all products of 40,135 barrels. The increase in total stocks was made entirely in the refined products, stocks of crude oil during the first nine months of 1938 having actually declined 7,155,000 barrels to 299,671,000 barrels, or an average daily decline of 26,209 barrels. The 1937 reversal of the preceding five-year trend of discoveries totalling less than withdrawals was continued through 1938 with indicated reserve addition from both new discoveries and extensions considerably in excess of the

Jan 1, 1939

By Thomas T., Read

ANY discussion of State-supported schools of mining and A metallurgy needs to be prefaced by a definition, since the first school to offer a mining curriculum, the Pennsylvania Polytechnic College, was established by a grant from the State. But, so far as can be determined, it received no further State support. It would be tiresome to go into precise details,. and it will be enough to stipulate that by State schools are meant those which derive their main financial support from regular appropriations made by a State legislature. The University of Michigan was the first of these to offer a mineral industry curriculum; its story, as well as those of Wisconsin and Illinois, has been related in the preceding chapter.* Arranging the others in chronological order involves making a decision as to what weight to attach to plans for giving instruction, as contrasted with its , effective initiation. This may appropriately be illustrated by the history of mineral industry education in California. California Among those who came to California in 1849 and the following years were many New Englanders who had a keen interest in education. Some of them, mostly Congregationalists and Presbyterians, sought to establish a school of higher education around San Francisco Bay and eventually succeeded in opening the "Scientific and Classical School at Contra Costa' in Oakland, at Broadway and 5th St., on June 20, 1853. This prospered so well that it was chartered by the State as the "College of California" on April, 13, 1855. Developing so rapidly that its quarters became cramped, in 1864 it not only bought a tract of

Jan 1, 1941

By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd's Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco's experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco's research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco's strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco's financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960's very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo's Project Development Study was completed. in January 1972. Based upon Toyo's cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo's cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco's planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950's and 1960's. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985