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By William Greenawalt

The Greenawalt electrolytic copper extraction process is applicable to suitable oxide ores, sulfide ores and concentrates, and low-grade matte. The process is self-sustaining in acid on sulfide ores or concentrates, on mixed ores, on high-grade oxidized ores; and on low-grade oxidized ores the amount of acid to be purchased or manufactured is greatly reduced. The ferric iron is under easy control, and copper may be effectively deposited from solutions of any acid or iron content likely to be used in copper leaching. From 60 to 75 per cent. of the copper may be removed from the solution in passing through the electrolytic department, before returning the solution to the ore. The amount of copper requiring chemical precipitation, from the waste and foul solutions, is only about 5.0 per cent, of the total copper produced, and this 5.0 per cent. is converted into the electrolytic metal in the regular operation of the process. The entire process can be made practically automatic, and can be carried out mechanically. There is no uncertain departure of any kind in the application of the process; no unusual or unproved apparatus is used. EVER since electrolytic copper refining gave promise of success, about a half century ago, efforts have been made to apply the idea to the extraction of copper from its ores. The methods of attack have, usually, been to leach with a dilute acid and then to deposit electrolytically the copper from the resulting solution with the simultaneous regeneration of the solvent used in the process. Many efforts have been made, and many patents have been taken out, both in the United States and abroad, to give this idea practical application, but only within the past few years have the difficulties been surmounted. Leaching and electrolysis, as applied to copper ores, are among the most promising fields in modern metallurgy. New conditions are arising, which will bring the wet methods into prominence; while high freight rates and increasing cost of fuel will tend to limit smelting to highly favored localities. The possibilities offered by the installation of hydro-electric plants and the greatly enlarged range of power transmission will greatly widen the field of electrolytic methods.

Jan 1, 1924

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 J. C. Reed, J. M. Hansell

Cinnabar was discovered in southwestern Arkansas on Little Missouri River in sec. 1, T.7S., R.26W., in April, 1930, and near Antoine Creek in sec. 28, T.6S., R.23W., some 15 miles farther east in May of the same year. It was not, however, until June, 1931, that cinnabar was identified as such in a specimen from the original discovery area sent to W. M. Weigell by Walter F. Hintze of Murfreesboro. Almost simultaneously2, in July, 1931, Moritz Norden of Hot Springs identified specimens from the Antoine Creek area as cinnabar. Immediate interest in the district followed the identification of cinnabar and by January, 1932, the district was known to extend as a mineralized belt about one mile wide trending east-northeast from sec. 13, T.7S., R.27W., in Howard County across central Pike County and into Clark County to sec. 19, T.6S., R.23W., thence extending southeast into sections 33 and 34 of the same township. Since then, cinnabar has been found in sec. 6, T.7S., R.22W., thus giving a total east-west length to the district of approximately 30 miles. Interest focused mainly on the two discovery areas, with the result that mining development has progressed most rapidly in those localities. In the Antoine Creek area the Arkansas Quicksilver Co. has done considerable exploration work and has retorted the high-grade ore so obtained. In the Little Missouri area the Southwestern Quicksilver Co. has had a 12-ton rotary furnace in more or less continuous operation since April, 1932, and has been the largest producer in the district. In March, 1934, the United States Geological Survey began a study of the Arkansas quicksilver district, which was made possible by an allotment of funds from the Public Works Administration. Until

Jan 1, 1935

By J. C. Reed, J. M. Hansell

Cinnabar was discovered in southwestern Arkansas on Little Missouri River in sec. 1, T.7S., R.26W., in April, 1930, and near Antoine Creek in sec. 28, T.6S., R.23W., some 15 miles farther east in May of the same year. It was not, however, until June, 1931, that cinnabar was identified as such in a specimen from the original discovery area sent to W. M. Weigell by Walter F. Hintze of Murfreesboro. Almost simultaneously2, in July, 1931, Moritz Norden of Hot Springs identified specimens from the Antoine Creek area as cinnabar. Immediate interest in the district followed the identification of cinnabar and by January, 1932, the district was known to extend as a mineralized belt about one mile wide trending east-northeast from sec. 13, T.7S., R.27W., in Howard County across central Pike County and into Clark County to sec. 19, T.6S., R.23W., thence extending southeast into sections 33 and 34 of the same township. Since then, cinnabar has been found in sec. 6, T.7S., R.22W., thus giving a total east-west length to the district of approximately 30 miles. Interest focused mainly on the two discovery areas, with the result that mining development has progressed most rapidly in those localities. In the Antoine Creek area the Arkansas Quicksilver Co. has done considerable exploration work and has retorted the high-grade ore so obtained. In the Little Missouri area the Southwestern Quicksilver Co. has had a 12-ton rotary furnace in more or less continuous operation since April, 1932, and has been the largest producer in the district. In March, 1934, the United States Geological Survey began a study of the Arkansas quicksilver district, which was made possible by an allotment of funds from the Public Works Administration. Until

Jan 1, 1935

Cinnabar was discovered in southwestern Arkansas on Little Missouri River in sec. 1, T.7S., R.26W., in April, 1930, and near Antoine Creek in sec. 28, T.6S., R.23W., some 15 miles farther east in May of the same year. It was not, however, until June, 1931, that cinnabar was identified as such in a specimen from the original discovery area sent to W. M. Weigell by Walter F. Hintze of Murfreesboro. Almost simultaneously2, in July, 1931, Moritz Norden of Hot Springs identified specimens from the Antoine Creek area as cinnabar. Immediate interest in the district followed the identification of cinnabar and by January, 1932, the district was known to extend as a mineralized belt about one mile wide trending east-northeast from sec. 13, T.7S., R.27W., in Howard County across central Pike County and into Clark County to sec. 19, T.6S., R.23W., thence extending southeast into sections 33 and 34 of the same township. Since then, cinnabar has been found in sec. 6, T.7S., R.22W., thus giving a total east-west length to the district of approximately 30 miles. Interest focused mainly on the two discovery areas, with the result that mining development has progressed most rapidly in those localities. In the Antoine Creek area the Arkansas Quicksilver Co. has done considerable exploration work and has retorted the high-grade ore so obtained. In the Little Missouri area the Southwestern Quicksilver Co. has had a 12-ton rotary furnace in more or less continuous operation since April, 1932, and has been the largest producer in the district. In March, 1934, the United States Geological Survey began a study of the Arkansas quicksilver district, which was made possible by an allotment of funds from the Public Works Administration. Until

Jan 1, 1935

By J. C. Reed, J. M. Hansell

Cinnabar was discovered in southwestern Arkansas on Little Missouri River in sec. 1, T.7S., R.26W., in April, 1930, and near Antoine Creek in sec. 28, T.6S., R.23W., some 15 miles farther east in May of the same year. It was not, however, until June, 1931, that cinnabar was identified as such in a specimen from the original discovery area sent to W. M. Weigell by Walter F. Hintze of Murfreesboro. Almost simultaneously2, in July, 1931, Moritz Norden of Hot Springs identified specimens from the Antoine Creek area as cinnabar. Immediate interest in the district followed the identification of cinnabar and by January, 1932, the district was known to extend as a mineralized belt about one mile wide trending east-northeast from sec. 13, T.7S., R.27W., in Howard County across central Pike County and into Clark County to sec. 19, T.6S., R.23W., thence extending southeast into sections 33 and 34 of the same township. Since then, cinnabar has been found in sec. 6, T.7S., R.22W., thus giving a total east-west length to the district of approximately 30 miles. Interest focused mainly on the two discovery areas, with the result that mining development has progressed most rapidly in those localities. In the Antoine Creek area the Arkansas Quicksilver Co. has done considerable exploration work and has retorted the high-grade ore so obtained. In the Little Missouri area the Southwestern Quicksilver Co. has had a 12-ton rotary furnace in more or less continuous operation since April, 1932, and has been the largest producer in the district. In March, 1934, the United States Geological Survey began a study of the Arkansas quicksilver district, which was made possible by an allotment of funds from the Public Works Administration. Until

Jan 1, 1935

By R. McDonald, B. C. Maine

CERRO'S power system consists of three main hydroelectric plants and one steam-electric plant. These are located on the eastern slope of the main Andes range at altitudes between 12,000 and 13,000 ft. The hydroelectric group utilizes the watershed which extends for about 150 kilometers south from Cerro de Pasco, divided into two catchment areas which lie adjacent. The northern area serve,, the medium-head plant of Mal¬paso. while the southern area provides for the high-head plants at Pachachaca and Oroya. The rainfall, as registered at the rain gauging stations of the three hydroelectric plants, averages 33 in. per year; all these stations are subject to the same hydrological conditions, and the bulk of precipitation occurs between October and March. Rainfall during the dry season, April till September, has no appreciable effect on the total annual runoff. Table 1 shows the storage capacities of the main reservoirs of the hydroelectric group. The four plants are tied together electrically by a 50-kv. transmission network, the system being 3-phase 3-wire at 60 cycles with a solidly grounded

Jan 1, 1945

By H. W. Seamon

The data here given were obtained by 1500 tests made by the United Verde Copper Co. to determine the most economical air pressure for the operation of hammer drills under the varying conditions of use, and to investigate the variation in drilling speed at different air pressures. Twelve models of drills were used at gage pressures ranging from 40 to 130 Ib. No effort was made to harmonize theory and practice; but rather to formulate empiric rules that would cover the average variation of the results obtained. These rules on the performance of hammer drills, based on the air pressure as the main variable, however, are not necessarily of universal application, but they apparently satisfy the results obtained in this series of tests. The drilling conditions at this property vary widely; an average of twenty-one machine shifts to a 3-ft. (0.9-m.) round has been found necessary in some of the development work, while an advance of 56 ft. has been made in seven shifts in the "oxide" ground. This range precludes the adoption of one type of drill as a standard; consequently almost every kind of hammer drill sold in this country has been tested. At present, sixteen models are in use, of which two types of the heavy (150 to 160 lb.) mounted drills, one of the light mounted drill, one stoper, and two hand plugging drills are considered as standard. Method of Conducting Tests All machines were of the wet type, and were selected as being representative of the several types in use at this property; all had been in use from two to four months except the Waugh 66 and the Sullivan DX61, which were new. All machines were thoroughly overhauled before they were sent to the testing ground. Tests were made on the following machines: Ingersoll-Rand, No. 248 Leyner-Ingersoll, No. 18 Leyner-Ingersoll, No. 26 Baby Leyner, BCRW430 Jackhamer, and CCW11

Jan 1, 1922

By N. I. Fisher, J. Shepherd

A rapid method of determining natural fracture trends in collieries has been developed. The method will yield information that is precise enough to permit fracture domain boundaries to be delineated in a coal seam. Instead of a survey of cleat trends in a colliery taking several man-weeks or even man-months, a reconnaissance survey can be carried out in only a few man-days. At each of a sequence of sampling sites along a traverse, five measurements of trend are recorded for each set of fracture directions. A sequential plot of the medians of each fracture set is then made manually underground or by a computer in the mine office. Changes in fracture pattern can be detected easily in colliery development work if a geologist visits advancing faces regularly, and forecasts can be made about the likelihood of forthcoming faults and dykes. A full description of this method is given in Shepherd and Fisher (1981). The concept of mapping fractures rapidly in a colliery is based on using a geological traverse (Compton, 1962), along which observations can be made at chosen, regular intervals. The technique has been widely used for surface mapping across outcrops and in follow-up work in photogeological studies (Hepworth and Kennerley, 1970). In these cases, the geologist surveys the traverse line as mapping proceeds. In a colliery, however, ready-made traverse lines already exist in panels and along main roadways, often in several directions. It is thus possible to traverse a colliery in different directions and record the fracture trends at intervals, generating a reconnaissance fracture map. This can also be done on a continuing basis as mine development takes place. Generally, a sampling traverse should be longer than 0.5 km with sampling sites at relatively close-spaced intervals along the traverse. For example, in room-and-pillar mines pillars are commonly formed on 40-m centers and the sampling sites can then be arranged at 20-m intervals [(Fig. 1)]. The sites might have to be closer together for mines known to have bad mining conditions. The predominant fracture trend is normally the face cleat and the subordinate trend is the butt cleat (McCulloch et al.. 1974). Various changes can occur in the cleat or joint pattern: the face and butt sets may disappear or an entirely new set or sets may appear. Therefore, it is best to record all prominent fracture sets. Sometimes there is only one; in other cases there may be as many as three or more. An odd number of measurements of each fracture set are made (generally five or more) to enable the median value to be determined easily. The median value can be plotted underground using graph paper or a computer plot can be made in the laboratory or mine office [(Fig. 2)]. The sequential linked median (SLIME) plot draws the median trend for each sampling site as a unit line segment. The segments from successive sampling sites can be connected together to form a long chain [(Fig. 2A)]. The needle plot, on the other hand, draws a straight line to represent the traverse and then plots out the median trend for each sampling site [(Fig. 2B)]. The SLIME plot is better for visual display, as it highlights small irregularities and gross changes in trend. However, some work is required to relate the individual segments to their site location along a traverse. In this respect, the needle plot is more convenient because each segment -can be plotted-at a point corresponding to its location. Also, there is precise match-up if needle plots of face and butt cleat are compared. A description and listing of the SLIME program is given by White et al. (1981). An example of the use of this method is given for Wallsend Borehole colliery in New South Wales (Australia) [(Fig. 2)], where domains II and IV are associated with mining hazards. Domain II is coincident with a normal fault of 2.6-m throw, and domain IV with a basic dyke 12 m thick. These hazards were approached driving in a southwesterly direction, and a pronounced change in trend of the cleat to a northwesterly direction occurred at a distance of approximately 45 m from each one. The northwestern joint trend is parallel to that of the dyke and fault, and it occurs at a higher frequency close to these structures. The association of a particular joint set with faults has been found elsewhere (Shepherd and Creasey, 1979). The two minor cleat direction changes within domain V are narrow joint zones that are less than 5 m wide. The fracture trends derived from a SLIME traverse can be verified by collecting larger quantities of data at selected sites, as shown in the balloon density (rose) plots depicted in [Fig. 2C]. We are grateful for the financial support provided by Thiess Bros. Pty. Ltd. and the National Energy Research, Development, and Demonstration Program administered by the Commonwealth Department of National Development and Energy. R.W. Miller Holdings Ltd. and Thiess Bros. Pty. Ltd. are thanked for their permission to publish data from their collieries.

Jan 1, 1982

Jan 1, 1969

By Robert L. Akre

When Marco Polo visited China in the 13th century, no one knew what black powder was except the Chinese; they knew enough to make dazzling fireworks with it. But the realization that black powder could also do useful work came much later and, like all important discoveries, it altered the course of history. It was in the 14th century that black powder was first used to break rock in a very crude way; there were no drills and the powder was simply poured into cracks and exploded by setting it afire. Because its energy value was pretty low, the need for something more powerful was felt when the industrial revolution began. In the 1850s, miners began experimenting with liquid nitroglycerine on a limited scale. This was a very sensitive and dangerous explosive. Fortunately in the 1860s, Alfred Nobel succeeded in stabilizing nitroglycerine by absorbing it in kieselguhr-and a new product, dynamite, was born. With it, miners were able to unleash the great energy of nitroglycerine for blasting purposes. But dynamite was still a very sensitive explosive. In subsequent years, other explosives of various strengths and characteristics were developed, such as blasting gelatin, gelatin dynamite, ammonia dynamites, (all containing some nitroglycerine or nitrostarch), and liquid oxygen explosives. These products and their variations supplied the blasting trade for many years. A grained ammonium nitrate product containing some carbonaceous material entered the market in the 1930s. This explosive had below-zero sensitivity-meaning: a No. 6 blasting cap imbedded in it would not detonate it. A more sensitive initiator, called a primer, was needed to detonate this mixture. From Rags to Primacord to Solid-State The first initiator for an explosive charge was probably a rag slowly burning its way to the charge; this method was quite unreliable. Then came the burning fuse, which was an improvement. Next was the nonelectric blasting cap initiated by a fuse. With these initiators, a miner needed quick reflexes and good legs; upon lighting the fuse, he had to run immediately for cover. Development of the electric blasting cap that allowed for accurate timing eliminated this hazard; the electric cap, however, introduced other safety problems because of its susceptibility to extraneous electricity, e.g., ground currents, lightning, and static electricity. These caps also became available in millisecond delays. Development in the mid-1930s of Primacord, a detonating fuse insensitive to electrical currents or impact, further reduced blasting hazards, and is generally acknowledged as the safest known means of initiation. Eventually, Primacord millisecond connectors also became available for delay patterns in blasting. In the mid-1960s, the Primadet delay was introduced; it is a practical nonelectric detonator system that offers the precise timing of electric blasting caps-and is immune to the hazards or effects of extraneous electricity. Recently, Research Energy of Ohio, Inc. introduced a new type of solid-state blasting machine that combines a sequential timer and delay caps. It enables the efficient breakage of rock with a minimum amount of shock, ground vibration, and noise. Improvements in Blast-Hole Drilling World War II created an enormous demand for coal and other minerals in the U.S. and elsewhere. Great efforts and large amounts of capital were spent to find new mineral deposits and develop better mining methods. But while mechanization in mining proceeded at a rapid pace particularly in open-cut work, there was a definite lag in developing new or improved machines for drilling blast holes. The industry continued to depend largely on horizontal, churn, and pneumatic drills. No better machine was available for large scale production. The need for improvement in this phase of mining became more acute in the post-war years. Despite efforts toward further mechanization, mining costs rose rapidly because of mounting inflation and increasingly high wages. In most operations, drilling and blasting the overburden became the principal item of cost. Therefore, whatever size holes were being drilled, the holes had to be spaced so that any foot of the bore hole could be loaded with the maximum load required for the number of cubic yards of material that each foot of the hole was carrying. With the smaller holes that were being drilled, the proportion of drilling cost to the total drilling and shooting cost was much higher than it would have been with larger holes (because of the closer spacing required by smal-

Jan 1, 1977

By C. A. Zapffe, C.E. Sims

Many hundreds of publications have appeared during the past 78 years that treat the subject of hydrogen in iron and steel.l05 but conclusions regarding the functions of hydrogen in causing some important defects in steel are still unsatisfactory to many; and other hydrogen-caused phenomena yet remain to be identified with this gas. The most widely discussed of these defects is hydrogen embrittlement, but the conception, perhaps the popular one, that embrittlelnent is due to hydride formation aoes not conform to the known facts.l04 The true identity of hydrogen embrittlement seems instead to lie in a mosaic nature of metal crystals, which is a concept not Yet accepted by most metallurgists. A study of hydrogen embrittlement therefore provides new viewpoints in regard to the crystalline substructure of steel.

Jan 1, 1941

By C. E. Sims, C. A. Zapffe

Many hundreds of publications have appeared during the past 78 years that treat the subject of hydrogen in iron and steel.l05 but conclusions regarding the functions of hydrogen in causing some important defects in steel are still unsatisfactory to many; and other hydrogen-caused phenomena yet remain to be identified with this gas. The most widely discussed of these defects is hydrogen embrittlement, but the conception, perhaps the popular one, that embrittlelnent is due to hydride formation aoes not conform to the known facts.l04 The true identity of hydrogen embrittlement seems instead to lie in a mosaic nature of metal crystals, which is a concept not Yet accepted by most metallurgists. A study of hydrogen embrittlement therefore provides new viewpoints in regard to the crystalline substructure of steel.

Jan 1, 1941

CORPORAL SHEPPARD B. GORDY Sheppard B. Gordy, a brief biography of whom was printed inn the January Bulletin, entered the employ of the Braden Copper Co. immediately on his graduation from the Sheffield Scientific School in 1912. He remained with this company four years, working up through the various grades to assistant foreman and foreman to one of the individual mines. The last year he was in its employ, he acted as general mine foreman. He was for a short time with the Chile Exploration Co. and then went with the Andes Exploration Co. (Anaconda) and remained with CORPORAL SHEPPARD B. GORDY. the latter, doing mine exploration and development work, until he sailed for home in June, 1918, to give a more personal and active service to his country in her need. He declined a tender of induction into an officers' training camp, at the urgent request of Professor McClelland supplemented by Mr. Potter, because they demonstrated to his satisfaction that he could give more valuable service to his country in helping out with the aircraft production. Being within the draft age, in order to carry out this plan, it was necessary for him to be called by his Local Board and sent to camp. This call came Aug. 26. Two weeks before that time lie had gone to Dayton, Ohio; to begin the study of aircraft production, and was sent by the Dayton Board to Camp Sherman, Chillicothe, Ohio, where he died of pneumonia on Oct. 9.

Jan 3, 1919

Jan 1, 1903

By Elmer R. Kaiser

G. A. Vissac (Consulting Engineer, Vancouver, B. C.) —Some of the data presented in this paper, in connection with cost studies of washed coals, should be clarified and qualified. Washing a raw coal down to a low ash content may mean higher losses in refuse, but the cost of the operation may be more than compensated by the increased value of the resultant product. However, careful engineering and accurate machinery are required to insure maximum profits. Washing at a low gravity separation demands a very accurate automatic process, chiefly when the small sizes of coal are being handled. Coal consumers today are buying mostly on a Btu basis, cognizant of the fact that low ash contents result in lower installation costs and in savings in handling and transportation charges. The attached Table X gives the actual balance sheets of the various cleaning operations corresponding to various ash contents for the two coals presented in the paper, using the old technique of a two-products separation. or the new technique, now commonly used in Europe, of a three-way separation made possible by new methods and new equipment. Savings in capital costs, handling, and transportation have been calculated on the basis of a delivered cost f.O.b. plant of $10.00 per ton of coal at 16.5 pct ash (actual 1953 average price reported by Consolidated Edison, N. Y.), and of $3.50 at the mine also for 16.5 pct ash coal. In both cases this corresponds to values of 126 and 4.26 per 1 pct of combustible and per ton, respectively, on delivered and on at the mine prices. As an example, the middle western coal at 16.5 pct ash, raw, washed down to 4 pct ash in a two-way process will give 53.75 pct of clean coal at 4 pct ash and 46.25 pct of refuse at 31 pct ash. The value of the losses will be 0.4625x(100—31)x0.042 = $1.34. Add the cost of washing, capital, and operation, which is $0.35. The total cost will then be $1.69. But with a three-ways separation we will have 53.75 pct of first-grade coal at 4 pct ash, 37.25 pct second-

Jan 1, 1955

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By Earl E. Hunner

At the end of the year 1914, the main North Star incline shaft had reached the 6300-ft. level, and encountered a vein dipping southwest, or exactly opposite to the North Star. Subsequent development failed to find the North Star vein continuing beyond this intersection, so the 6300-ft. level proved to be the bottom level of the North Star vein, and very little ore was found below the 5300-ft. level. The new vein was called No. 1 vein. Development work carried on for the next 10 years discovered a third vein, called No. 2, branching off about 1200-ft. to the east, with a north-south strike and a west dip. No. 1 vein had about 900 ft. of backs above the 6300-ft. level before reaching the boundary line of the property, and No. 2 vein died out about 800 ft. above. During these 10 years, the money spent on development was increased from $54,000 in 1914 to $184,000 in 1924; the ore reserves steadily diminished until it was evident that the mine must close down unless by some means a large tonnage of ore could be developed quickly. Problems and Plans In order to understand what follows, the general layout and equipment of the mine as it was at this time must be briefly described. Fig. 6 indicates the relative positions of the shafts. The North Star (incline) shaft extends from the surface to the 6300-ft. level following the vein, with an average pitch of 26", between limits of 11" to 38. There is at present no hoisting equipment in this shaft between the 2700 and 4000-ft. levels. The Central (vertical) shaft connects with the North Star shaft at the 4000-ft. level, at a vertical depth of 1600 ft. In two compartments of this shaft 4-ton skips made a vertical turn of 15 ft. radius at the 4000-ft. level and ran down the incline to the 6300-ft. level. A cage operated in the third compartment to the 4000-ft. level. Men and supplies were transferred to a truck running on a third track down the incline shaft to the 6300, operated by an electric hoist on the 4000-ft. station. When the shifts changed double-deck cages were substituted for the skips in the vertical shaft, but they stopped at the 4000-ft. station. The truck to 6300 carried 22 men, and it required 8 min. to make a trip down and back. This arrangement was satisfactory as long as a fairly large proportion of the work was

Jan 1, 1930

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