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By John K. Hammes

INTRODUCTION This introductory paper presents a description and definition of what the finance function is and what it specifically means for the mining industry. In its simplest terms, finance is, "management of money matters". As an area within the discipline of business administration it draws heavily on the related fields of economics and accounting, and to a lesser extent on marketing and production. MINING FINANCE DEFINED In preparing to write about what finance means to the mining industry, I asked a number of mining people the question, "What does mining finance mean to you?" Most responded that mining finance was "How a company borrowed money for mine development", and perhaps half those questioned included "raising equity" in the definition. It is not surprising that the mining industry concept of finance is the providing of funds needed for the objectives of the business, for that was once a view shared by authorities in the field of business administration. Further, it is certainly the area where much of the emphasis has been placed in the past ten to fifteen years as the industry struggled with the development of more remote and more refractory or lower-grade orebodies while profitability and internal cash flow were below expectations. No wonder project finance became such a popular topic. Twenty years ago it is probable that the emphasis would have been on mine valuation, for that subject was the area of finance then most often examined in industry publications. Papers concerning the pros and cons of payback, internal rate of return, and discounted cash flow appeared regularly. Let's examine the following situations, each the result of a financial decision: - Funding the exploration program in a developing country was accomplished by buying the next six-months budget needs in local currency. One week later the currency devalued 30 percent. If the purchase had been delayed or the local currency borrowed short term, a substantial saving would have been made in funding the program. - A major mining company borrows heavily to finance both expansion of its primary mining business and its entry into several new industry segments. When markets for all of the commodities it produces turn down for a prolonged period, there is concern over the adequacy of cashflow to cover debt service in addition to other company needs. The company's financial officers, however, had arranged very large committed credit facilities from numerous financial institutions which assured the availability of funds for several years. This enabled the company to implement a strategy to conserve cash, sell assets and survive until conditions improved. Further, short term suppliers of credit also were comfortable with the assurance that longer term credit was there to support them. -A medium size mining company financed several mines independently with limited obligations on the part of the parent company. The company decided to refinance the operations under one agreement. More flexible terms, lower interest cost and a longer tenor financing were achieved in return for assuming the risk as a direct obligor. - The exploration and development group of a large mining company proposes to develop a new mine in a country in which the company does not presently operate. When the investment is rejected they are advised that one reason was that the reinvestment assumption inherent in the discounted

Jan 1, 1985

By J. P. Heller

The purpose of this discussion is to comment briefly on one of the points raised in the paper. The topic is that referred to in the Conclusion 2, in which the authors note a "disproportionate increase in mixing rate" as they proceed from a displacement performed at viscosity ratio 0.998 to one at 1.002. The recovery curve of this displacement, Fig.2A, shows a quite noticeable difference between the two runs in which displaced and displacing liquids were interchanged. This difference is ascribed by the authors to the change in viscosity ratio between the two experiments. This interpretation of the experimental results must certainly be based on rather precise measurements of the fluid viscosities or, at least, of the ratio of their viscosities. The ordinary Ostwald viscometer, employed in the usual way, is only just able to distinguish between liquids whose viscosities differ by two or three parts per thousand. The experimental refinements which then must have been necessary to measure with any precision a viscosity ratio of 1.002 would be worthy of mention. Indeed, one would have expected the authors to devote at least a paragraph to the display of this technique. For the same reason - to emphasize that the details of such unusually critical experimental work should be reported and discussed in the literature — I would have liked to see some comment by the authors on the requirements for temperature control during both the viscosity measurements and the displacement experiments. The temperature coefficient of viscosity of Soltrol C at room temperature has been measured in this laboratory at about - 1.9%/1°C. How much did the coefficients for the fluid mixtures used in the experiment differ from this and from each other Even if the two fluids were identical in this respect, it would appear that a temperature difference of .l°C between them in the flow system would produce a viscosity con- trast equal to that imposed by their composition. Reference to the experimental solutions of these problems would render Conclusion 2 more credible. Published theoretical work on the stability problem contains no indication of such extreme sensitivity to the viscosity ratio in the immediate neighborhood of unity. On the contrary, perturbation calculations such as those made by Chuoke1 and Perrine2 lead to initial finger growth rates proportional to the first power of the viscosity difference. The later instability growth calculated by Scheidegger,3 using the assumption of zero pressure gradient perpendicular to the average flow, is also simply proportional to the viscosity difference. The conflict regarding the sensitivity of the dependence of instability growth or mixing rate on the viscosity contrast needs explicit recognition in the literature. In particular, it would seem that the experimental work reported here should be supported by a more detailed description of the viscosity controls. Further discussion of possible alternative interpretations of the data would also be in order. For instance, is it possible that the unconsolidstted bead pack used changed its characteristics between the runs (due, perhaps, to the handling and inverting involved in the injection of the front) Or, are the data points of Fig. 2A averages from several runs performed in a series in which the two liquids alternated as displaced and displacing fluids? To summarize, it seems to me that the relationship asserted by Conclusion 2 in the paper needs the support of more detailed experimental evidence. REFERENCES 1. Chouke, R. L., van Mews, P. and van der Poel, C.: "The Instability of Slow Immiscible Viscous Liquid-Liquid Displacements in Porous Media", Trans., AIME (1959) Vol. 216, 188.

By C. H. Gorski

A method for preparing titanium tetrachloride is described which consists of reducing rutile with coke and chlorinating the reduced product at 200° to 500°C. The crude distillate is purified by treatment with copper powder and distillation. Recoveries, exceeding 90 pct of the titanium in the rutile, were obtained. IN recent years considerable interest in metallic titanium has been aroused because of its outstanding physical and chemical properties. The present commercial processes for preparing titanium are modifications of the Kroll1 process and consist essentially of the reduction of titanium tetrachloride with magnesium in an inert atmosphere to produce metallic titanium with magnesium chloride as a byproduct. At present,' commercial titanium tetrachloride costs $0.32 a pound, which makes the price of the included titanium $1.28 a pound. As the titanium tetrachloride must be purified further before processing into metal, its ultimate cost obviously will be higher. Consequently, one of the prime requisites for the production of lower cost titanium metal is a source of low-cost titanium tetrachloride. Recently, Knickerbocker, Gorski, Kenworthy, and Starliper3 escribed a method for preparing titanium tetrachloride from low-grade Arkansas rutile by smelting the rutile with pyrite and coke to form a titanium matte and then chlorinating the titanium matte to prepare a crude titanium tetrachloride. This process had several inherent advantages. Low-grade rutile concentrates were utilized, the chlorination temperature was relatively low (approximately 200°C), and the reaction was strongly exothermic. However, this process had several disadvantages, chief of them being the rather low recoveries of titanium tetrachloride (65 to 81 pct) and the difficulty in purifying the crude titanium tetrachloride obtained. Because of the high-titanium and low-iron con- tents of rutile as compared to ilmenite, rutile should be of greater potential value as a source of titanium tetrachloride than ilmenite. Rutile, however, is not chlorinated directly in commercial practice, because reaction temperatures above 700 °C are required, at which point chlorine attacks most of the common materials of construction. The process now in use consists of converting the titanium in rutile to the cyanonitride by high-temperature reduction in an electric furnace, and then chlorinating this compound. The disadvantages of this process are the difficulty of producing the cyanonitride, the use of high-grade rutile concentrates in the charge, and the presence of several percent of silicon tetrachloride in the finished product. It would be of considerable interest to develop a new process for the preparation of titanium tetrachloride from rutile by chlorination at 200" to 500°C. Process Development Several investigators'-' have studied the reduction of titanium dioxide with carbon in an effort to prepare titanium monoxide. Invariably, the titanium monoxide formed in this manner was not pure, as it contained titanium carbide and one or more of the lower oxides of titanium. As these lower oxides of titanium are more reactive chemically than rutile, and as it is known that titanium carbide may be chlorinated readily, a study was made of the chlorination of carbon-reduced rutile. A sample of rutile concentrates from Hot Spring County, Ark., containing 76.19 pct TiO,, 5.65 pct Fe2O3, 4.18 pct SiO2, and 2.88 pct Al2O3, was used for this investigation. The experimental procedure consisted of making an intimate mixture of —100-mesh rutile and petroleum coke, adding water and molasses as a binder to foi-m a paste, charging into a graphite crucible that was covered, except for a vent to allow the

Jan 1, 1952

By Andrews Allen

WE all remember when, a few years ago the preparation of coal was nothing but a matter of having somebody at the face or somebody in the railroad car pick out the impurities; also the sizes were generally' made" over a bar screen. Anything that was black was coal; and the only matecia1 picked out was the slate or rock-impurities that could be distinguished by eye or by hefting. This was all right as long. & coal could be sold at. a good price. After all, we are all in business to -make the most money honestly out of a certain acreage of coal and a certain plant. For this purpose what is required is the greatest possible recovery of marketable coal and the highest market price.

Jan 1, 1929

By James R. Cudworth

OUR colleges and universities have met many difficulties during the past year. From a period of small enrollments and depleted faculties, the educational institutions have passed quickly to a period of the largest enrollments in their history with inadequate facilities and staffs. The results of the shortsighted policy of the Selective Service system which drained the technical schools and universities of many of the students who were potential teachers are now being felt. The movement of faculty members into positions in industry during the war years has resulted in many of them forsaking permanently the educational field for the higher salaried positions they now occupy. Competition is keen between the educational institutions, and between the institutions and industry, for technically trained men. Dean Holbrook's statement in last year's annual review that he thought it would take three or four years to restore our engineering departments to their former level in quality of instructors is even more convincing today. Somehow, the institutions must not only reach their former level in quality of instruction but they must also increase the quantity of their staffs to meet the demands of the ex-service men and the high school graduates for engineering education. The enrollments in the mineral industry fields of mining, metallurgical, geological, petroleum, and ceramic engineering, although greatly increased, are not expanding as much as in the more widely known fields of electrical, mechanical, aeronautical, and civil engineering. In fact, many educators are tremendously worried about the segregation of so many young men in a relatively few fields while the needs of others will remain unanswered.

Jan 1, 1947

By A. L. Engel

IN the treatment of complex ores by flotation, one of the most important steps is conditioning the feed. Conditioning primarily consists of the addition, in the grinding circuit, of an alkaline reagent, for example sodium carbonate, which neutralizes any acidity of ore and mill water, counteracts the effect of 'harmful soluble salts, disperses colloids, and provides the necessary alkalinity for the best metallurgical results. The several minerals of the ore should be put in such condition that they may be floated or rejected as desired, through the action of further reagents thereafter used.

Jan 1, 1932

By N. G. Johnson

ALL of us are only too familiar with the fact that first the defense program, and finally the war, required vastly increased production from existing sources, and the discovery and development of new sources of minerals and metals. For this vast program, the explosives industry was well prepared. I use the term "well prepared" to cover all the phases of explosives service, which include formulation, design, manufacture, distribution, and application.

Jan 1, 1944

By MILNQR ROBERTS

THE Nicola Valley coal-field is small, but it seems likely to become important because of its commanding position in a rich region that is developing rapidly. Bituminous coking coal in workable quantity has not been found at any other point between the Crow's Nest Pass region, about 400 miles to the east, and Vancouver island, 250 miles westward. The Canadian Pacific railway reached the Nicola valley two years ago; two other lines, the Canadian Northern and the Great Northern, are building towards the valley. The vast region between the Rocky mountains and the Pacific coast, extending northward for several hundred miles from the international boundary, which has been the scene of extensive mining- and smelting-operations for many years, is filling up with settlers, who are attracted by the wealth of minerals and timber, the rich soil of the valleys, and the fine climate. The Nicola river, flowing westward through the valley of that name in the Yale district, discharges into the Thompson river, which is the eastern branch of the Fraser. The transcontinental line of the Canadian Pacific railway crosses the mouth of the Nicola river at Spence's bridge, 178 miles from Vancouver. From Spence's bridge the Nicola branch line ascends the valley for 40 miles to Merritt, the coal-center, and continues 7 miles farther to the town of Nicola. Thus the haul from the mines at an elevation of 2,000 ft, to saltwater is 218 miles down river grades. The Nicola branch will be continued about 150 miles farther eastward to Penticton, where it will connect with an extension of the line through the rich Kootenay and Boundary districts. The Canadian government has granted a subsidy of $6,000 per mile, to which the pro-

Jan 1, 1910

By George Otis Smith

A YEAR ago, ,at the Institute's dinner, I closed my A remarks with the words: "The scientist devotes his life to the advancement of learning; the engineer gives his to the advancement of living." May 1 begin tonight where I left off then and speak first of the distinction between science and engineering? This difference is a difference both in purpose and in method: it is the sharp contrast between theory and practice; it marks the broad gap between dream and attainment. Sometimes it happens that the investigator is also the builder and applies what he discovers, yet the distinction between science and engineering serves to point out the broad dependence of the engineer upon his brother the scientist. You remember .the old - saying that "where there is no vision the people perish" translate this into modern experience and we may say that "where there is no science, the engineer fails."

Jan 1, 1929

By E. P. JENNINQS

(Cleveland meeting, October, 1912.) LARGE deposits of titaniferous iron-ore occur at Caribou, an old silver-mining camp in Boulder county, Colo., 17 miles west by south of Boulder, and a few miles northwest of the tungsten-mines. Professor Regis Chauvenet 1 published a part analysis of the ore many years ago, but gave no description of the wall-rock. Caribou hill, which contains both the silver-bearing veins and the iron-ore deposits, is a low dome of gabbro surrounded by the Archaean schists and gneisses of the Front range of the Rocky mountains, the peaks of which, a few miles west of Caribou, attain an elevation exceeding 12,000 ft. The gabbro stock is roughly elliptical in outline, with approximate diameters of 1 and 3 miles. The crest of the dome is 10,500 ft. above sea-level, and the town and ore-deposits are 500 ft. lower. Outcrops of the iron-ore occur in the town and extend NW. for 2,000 ft., where they disappear under the swampy meadows of Caribou park. Portions of the deposit are covered by drift, but one continuous outcrop is 900 ft. long and from 200 to 250 ft. wide. A second deposit is 0.25 mile south of the town along the eastern slope of the hill. It is not as well defined as the north bed, but is approximately 1,000 ft. long and from 100 to 200 ft. wide. The easily disintegrated ore does not form prominent outcrops, but the outlines of the deposits are readily traced by the large amount of ore fragments that cover the ground. Trenches and pits sunk on the outcrop expose a roughly banded magnetic iron-ore, with pyroxene as the principal gangue-mineral. The Gabbro. This rock was classified in the field as a gabbro from the presence of pyroxene and striated feldspars, and for convenience the field-name will be retained. 1 Chauvenet, Regis, Biennial Report of State School of Mines, Golden, Colo., p. 16 (1886).

Oct 1, 1912

By AIME AIME

THE best meeting ever held, was the opinion expressed by a number of those who attended the annual meeting of the Institute in New York, Feb. 18 to 21, and there was an atmosphere of friendliness and good fellowship about it that fully justified the feeling. In numbers it was not quite so large as last year and unless the Engineering Societies should build for themselves a new building it is probable that no meeting can be larger, in respect to numbers, than that held in 1928, which was only made possible by the circumstance that the eighth floor of the building happened to be, temporarily vacant at the time. The number of rooms available for -sessions that were provided when the building was built long ago proved inadequate, and it is only by the expedient of obtaining the temporary use of the board and committee rooms of other societies that it is possible to arrange for the over 40 sessions that must be spread over the four days of the meeting. The-fifth floor, where. a buffet lunch is served each-day, has reached its full capacity and it seems quite evident that any future development of Institute meetings must be along the lines of quality, not size.

Jan 1, 1929

John S. Kennedy, Chamhersburg, Pa. (communication to the Secretary): The washing-plant described by Mr. Johnson is a good illustration of the advantages derived from a well-designed and care-

Jan 1, 1895

By AIME AIME

No democracy such as ours, can ever be prepared for war, because we could never conceivably be the aggressor. The aggressor prepares in secret, designs his new tactics, and invents and makes new equipment and selects the time to strike. If a democracy prepare done year and the war came later, all that it had one would have to bed one over. All that England has today in the way of effective armament has been invented, designed, made, and the crews trained since the war began, because the totalitarian aggressor introduced new types of equipment and new techniques.

Jan 1, 1941

By S. Marion Tucker

THE aggregate number of "papers" read within any one year before more or less bored and bewildered audiences is simply appalling. We have seventy to eighty engineering societies alone, not to speak of the many hundreds of societies of every other imaginable kind. And each meets at least once a year to tell what it has found out since the last meeting. All this is very fine and fortunate, at least in the case of the scientific and technological societies; for if even only one significant discovery, one new truth, one new idea comes out at the meeting, the session has been abundantly justified. To many of us, not scientists or technologists, the scientific and technological societies seem to release by far the most useful and important information. What they have to say is often of prime importance directly to human life and to industry, and is perhaps even more important indirectly in its final influence upon social and economic conditions, thus ultimately determining the course of what we like to call civilization. The paper read by that quiet, unpretentious man on the platform ma; mean the revolutionizing of a great existing industry, the creation of an entirely new industry, the gain of millions of dollars to some persons, the loss of millions to others. But, lamentably,

Jan 1, 1940

By J. L. CAHUTHERS

MANY different methods are used for transporting coal from the working face to the tipple. The common methods are animal haulage, locomotive haulage, conveyor systems, and combinations of these three, supplemented, at times, by the miner pushing his own car. Haulage may also be classified into gathering and main line. Gathering haulage is the collecting of loaded cars to a point whence they are hauled to the tipple. In this there is perhaps more lost-time than on the main line because there are .more units in the operation to be synchronized. Also, conditions on the gathering haul- age, such as bad track, poor timbering, insufficient motive power, etc., cause delays; usually these are corrected on the main-line haulage.

Jan 1, 1931

By Dever C. Ashmead

COAL companies in the anthracite region are studying various methods of mining that will permit a considerably shorter life of gangway and therefore a decrease in the maintenance charges. Maintenance charges in the upkeep of gangways where the measures are steeply pitching are high due to the excessive cost of the replacement of timbers and the cleaning up of falls. Therefore, if the length of gangway in the coal beds can be decreased and the mining more concentrated, the life of the coal gangways will be decreased and consequently the maintenance charges will be lower per ton of coal produced. Customary practice in the anthracite region is to drive long coal gangways and to work the breasts as the gangway from which they were driven is advanced.

Jan 1, 1925

By E. F. Loiseau

(Read at the Philadelphia Meeting, February, 1878.) UNTIL June, 1868, it had not been attempted, either in this country or abroad, to manufacture by mechanical means, from anthracite coal-dust, artificial fuel for domestic use. Several attempts had been made to utilize coal-waste by converting it into a fuel for manufacturing purposes, but none of the processes were original, and they were merely applications of the well-known European processes and machinery, slightly modified by American ingenuity and mechanical skill. With one exception all those attempts have been failures. The great difficulty in the application of European processes and machinery has always been the limited production, and the excessive cost of the manufactured product, as compared with the cost of mining and preparing the ordinary anthracite coal for the market. The only serious and intelligent attempt to manufacture, on a large scale, artificial fuel for manufacturing purposes, has been made by the Anthracite Fuel Company, whose works are erected at Fort Ewen, near Rondout, New York. This company, organized under the auspices of the Delaware and Hudson Canal Company, had to go through the usual course of difficulties, breakages, and disappointments, which seems to be the lot of every new industry. Thanks, however, to the energy and perseverance of Mr. L. L. Crounsse, a gentleman of means, from Washington, D. C., the enterprise succeeded, and it is to-day established on a permanent basis. In order to increase the production, and to reduce its cost, the Anthracite Fuel Company was compelled to change most of its plant, and to erect more powerful machinery, producing lumps of a larger size, almost twice the size of the lumps made previously by the same company. This increase in the size of the lumps has been resorted to in Europe as well as in this country, in order to increase

Jan 1, 1878

By E. F. Loiseau

Until June, 1868, it had not been attempted, either in this country or abroad, to manufacture by mechanical means, from anthracite coal-dust, artificial fuel for domestic use. Several attempts had been made to utilize coal-waste by converting it into a fuel for manufacturing purposes, but none of the processes were original, and they were merely applications of the well-known European processes and machinery, slightly modified by American ingenuity and mechanical skill. With one exception all those attempts have been failures. The great difficulty in the application of European processes and machinery has always been the limited production, and the excessive cost of the manufactured product, as compared with the cost of mining and preparing the ordinary anthracite coal for the market. The only serious and intelligent attempt to manufacture, on a large scale, artificial fuel for manufacturing purposes, has been made by the Anthracite Fuel Company, whose works are erected at Fort Ewen, near Rondout, New York. This company, organized under the auspices of the Delaware and Hudson Canal Company, had to go through the usual course of difficulties, breakages, and disappointments, which seems to be the lot of every new industry. Thanks, however, to the energy and perseverance of Mr. L. L. Crounsse, a gentleman of means, from Washington, D. C, the enterprise succeeded, and it is to-day established on a permanent basis. In order to increase the production, and to reduce its cost, the Anthracite Fuel Company was compelled to change most of its •plant, and to erect more powerful machinery, producing lumps of a larger size, almost twice the size of the lumps made previously by the same company. This increase in the size of the lumps has been resorted to in Europe as well as in this country, in order to increase

Jan 1, 1879

By C. M. EYE

IN the spring of 1905 I was employed by Messrs. Bradley and Requa, under our fellow member, Thomas Cox, on the mill plans for the Nevada Consolidated, when an opportunity came to go to the Philippines to erect a small mill on the property of the Benguet Consolidated. This I accepted, expecting to be away eight months or so, but it was seven years before I got back. .I sailed in May, on the Coptic, having as room-mate as far as Kobe, A. E. Drucker, who was going out to Korea for the Oriental Consolidated. It was the first trans-ocean trip for either of us, and we had some rather unusual experiences. This was toward the close of the Russo-Japanese war and the Russian fleet was known to be on the way from Suez to Asiatic waters, but it was a matter of doubt whether they would risk a passage between Japan and the mainland, or take the longer but obviously safer route outside of Japan. The Coptic carried much contraband of war for Japan, so naturally did not care to meet this fleet. No definite word being available at Honolulu, we went to the Midway Islands, but the cable station there had very little information to offer, so we proceeded cautiously toward Japan. On the last afternoon out, we steamed due north at half speed for several hours, and finally sneaked into Yokohama at night, to learn that ' the Russian fleet had met the Japanese the day before and had been annihilated. We sailed over the spot in the Sea of Japan a week later, and when we got to Manila we found three of the Russian boats interned and being guarded by the monitor Monadnock and a cruiser. This was only a matter of form, as the Russians were only too glad to be there for the rest of the war, and the boats could not have gone far anyway, for they were literally shot to pieces. The Admiral's flagship had a hole within 3 ft. of the water line, for ward, through which a man could enter by stooping.

Jan 1, 1929

By ALBERT C. RUBEL

RECENT developments in the use of the core barrel in rotary drilling have led to its wide application in all types of development. Its use is essential to the wild-catter and a valuable guide and check even in the most closely developed areas. A perfect core would be an unbroken sample of formation whose length is equal to the amount of hole made by the core barrel, whose diameter is great enough to show the lithologic character, texture and attitude of the material encountered, whose formation is so unaltered in character and so free of contamination from outside sources that it represents a true and complete sample of the formation penetrated. From such a core it would be possible to determine the lithologic character and economic importance of the formation, whether it is oil bearing or barren, the nature and attitude of the sands and shale bodies, valuable fossil evidence and other points which would assist in the correlation or in the selection of suitable points for water shut off or production.

Jan 1, 1924