Search Documents

By M. G. Cheney

Careful estimates indicate that during 1942 new discoveries and extensions in West Central Texas added oil reserves slightly in excess of the eight million barrels produced. Drilling activity fell 40 per cent below 1941 and 82 per cent below the normal drilling activity of the late 1920's. Total production for the district continued its downward trend, now being less than % of the 42.7 million barrels peak in 1921. Rapid revival of activity is not probable under existing conditions, as costs of discovery, development and operations on the average probably now exceed current market price for the oil, the latter having remained constant since the spring of I941. Costs have advanced materially since the third quarter of 1941, when reports to the Tariff Commission indicated a margin of profit of 13.3 per barrel. Physical as well as economic conditions are holding back the amount of drilling in this district. The lenticular sands are not suited to 40-acre spacing regulations. There is no surplus of experienced oil-field labor. To reduce costs, much second-hand material is used for all except the deeper wells.. Price controls have retarded movement of used equipment by prescribing maximum prices that arc too low for the better grade materizl, thus making , owners reluctant to sell. On the other hand, buyers are unwilling to pay ceiling prices asked by sellers for poor material. Seventeen new oil fields and five new gas fields were found during 1942. Extensions and deeper 'drilling brought favorable results in eight older fields. The most significant new developments appear to have been in Coleman, Jones, Shackelford and Taylor Counties. A 5800-ft. completion in Wise County brought this county into the producing column for the first time. None of these new discoveries can he rated above one million barrel reserve on the basis of present development. Probably the most important development was discovery of a deeper pay (Gunsight lime) in the Wimberly field of Jones County, which shows promise of producing over an area of about 1000 acres. Jones and Shackelford Counties still lead the district in total annual production. Discovery of the Reddin pool, north central Taylor County, is credited to geochemical methods, making one success out of five or more wildcats based on such methods. Geophysical surveying increased decidedly during 1942 and returns from these studies are expected during coming years. Most of the wildcatting in the district is still based on surface and subsurface geological structural mapping, study of log data as to distribution of prospective producing reservoirs, and drilling in proximity to previous showings of oil and gas. Geological debate continues as to the proper correlation of the 100 to 300 ft. of gray lime that has produced more than 100 million barrels in the Parks, Brecken-ridge, Curry, Eliasville, Ibex, Pioneer and other important fields of this district. Fossils indicate that this limestone is younger than the Atoka beds of Oklahoma. On a structural basis most geologists include this formation with the Bend but a number of paleontologists believe it is more properly classified with the Strawn.

Jan 1, 1943

By M. G. Cheney

Careful estimates indicate that during 1942 new discoveries and extensions in West Central Texas added oil reserves slightly in excess of the eight million barrels produced. Drilling activity fell 40 per cent below 1941 and 82 per cent below the normal drilling activity of the late 1920's. Total production for the district continued its downward trend, now being less than % of the 42.7 million barrels peak in 1921. Rapid revival of activity is not probable under existing conditions, as costs of discovery, development and operations on the average probably now exceed current market price for the oil, the latter having remained constant since the spring of I941. Costs have advanced materially since the third quarter of 1941, when reports to the Tariff Commission indicated a margin of profit of 13.3 per barrel. Physical as well as economic conditions are holding back the amount of drilling in this district. The lenticular sands are not suited to 40-acre spacing regulations. There is no surplus of experienced oil-field labor. To reduce costs, much second-hand material is used for all except the deeper wells.. Price controls have retarded movement of used equipment by prescribing maximum prices that arc too low for the better grade materizl, thus making , owners reluctant to sell. On the other hand, buyers are unwilling to pay ceiling prices asked by sellers for poor material. Seventeen new oil fields and five new gas fields were found during 1942. Extensions and deeper 'drilling brought favorable results in eight older fields. The most significant new developments appear to have been in Coleman, Jones, Shackelford and Taylor Counties. A 5800-ft. completion in Wise County brought this county into the producing column for the first time. None of these new discoveries can he rated above one million barrel reserve on the basis of present development. Probably the most important development was discovery of a deeper pay (Gunsight lime) in the Wimberly field of Jones County, which shows promise of producing over an area of about 1000 acres. Jones and Shackelford Counties still lead the district in total annual production. Discovery of the Reddin pool, north central Taylor County, is credited to geochemical methods, making one success out of five or more wildcats based on such methods. Geophysical surveying increased decidedly during 1942 and returns from these studies are expected during coming years. Most of the wildcatting in the district is still based on surface and subsurface geological structural mapping, study of log data as to distribution of prospective producing reservoirs, and drilling in proximity to previous showings of oil and gas. Geological debate continues as to the proper correlation of the 100 to 300 ft. of gray lime that has produced more than 100 million barrels in the Parks, Brecken-ridge, Curry, Eliasville, Ibex, Pioneer and other important fields of this district. Fossils indicate that this limestone is younger than the Atoka beds of Oklahoma. On a structural basis most geologists include this formation with the Bend but a number of paleontologists believe it is more properly classified with the Strawn.

Jan 1, 1943

By W. B. Plank, A. C. Callen

WAR and normalcy do not walk hand in hand, whether it be in industry, the educational field, or in the daily lives of individuals. Schools and departments offering curricula in mineral engineering have been seriously disrupted, beginning with 1942 and reaching a low during 1944. Selective Service regulations and voluntary enlistments have effectually stopped the flow of college-trained men into the mineral industry, and the flow into the colleges is little more than a dribble. The year just closed has been a most serious one for our institutions. Until March many of our faculties had been kept reasonably intact because of the large training programs of the Army and Navy. Although the number of

Jan 1, 1945

By John V. Beall

During the last quarter of 1948, two new machines, which may revolutionize the coal mining industry, made their first public appearance within two months of each other. Both are designed to mine and load coal continuously. On Oct. 27, the "Colmol," invented by C. H. Snyder and A. E. Lamm, president and executive vice-president, respectively, of the Sunnyhill Coal Co., was demonstrated at the No. 8 mine of that Company at New Lexington, Ohio. The "Joy Continuous Miner," invented by H. F. Silver, president of the Silver Engineering Works, Denver, and developed and manufactured by the Joy Manufacturing Co., was demonstrated at the Mathies mine, near Finleyville, Pa., in the Pittsburgh coal seam.

Jan 1, 1949

By KENNETH CITTISGHAM

During the year 1945, the total number of wells drilled in Ohio, including the. non¬productive wells, was 1034. For the 10-year period ending with 1945, the average completions per year were 1125, the least number being 910 in 1938, and the maximum 1561 in 1941. The proportion of dry holes in 1945 was 37 per cent?about the same as for the year 1944 but exceeding the 10-year average, which was 34 per cent. The number of oil wells completed exceeded the number drilled in 1944 by about 30 per cent, the average initial per well being the same in both years. Gas-well completions were approximately 10 per Cent less than in 1944, with the average initial per well about 5 per cent greater. The difference in number of oil and gas wells in the two years was in Berea and Clinton completions, as the number of oil wells increased about 30 per cent, owing to greater activity in the two sands named, while the number of gas wells decreased because of fewer completions therein.

Jan 1, 1946

By Scott Turner

PRESIDENT SCOTT TURNER officiated as chairman of the opening session on mining methods, Monday morning, Feb. 15. The first paper was that of Max H. Barber on open-pit mining in the Lake Superior district, read by C. F. Jackson. W. L. Taylor stated that liquid-oxygen explosive had been tried but that the operators are satisfied with the explosives used; lb. of dynamite breaks one ton of rock. Although black powder is considered the most effective explosive, the factor of safety has decided in favor of high explosives. Lucien Eaton told of the Michigan Lime and Chemical Co.'s large L. 0. X. plant at Rogers City, Mich. Mr. Turner referred to this plant, also said that the Bureau of Mines is shortly to issue Bulletin 349 completely covering the use of L. 0. X. from its inception. W. D. B. Motter, Jr., gave some items concerning Chuquicamata, Chile. Twelve years ago the blasts moved 850,000 to 1,000,000 tons, but average shots now move 250,000 to 300,000 tons. One pound of L. 0. X. breaks 3.7 tons, against 3.1 tons by dynamite. Another speaker told of some large dynamite blasts in open pits, one of 360,000 Ib. in March, 1931, and another of 430,000 lb. to be shot in 1932. Tests have been made to determine the effect of large shots on the surrounding country. Mr. Taylor said that 4- and 5-yd. shovels were preferable to those of 8 yd.; their performance is better and cost is lower.

Jan 1, 1932

The primary purpose of the Institute is to advance the technologic and engineer-. in- arts embraced by it through inter¬change of knowledge. This can best be clone by the presentation and discussion of technical papers by its members. Short " practical papers are especially welcome. An author should always satisfy himself that his material is of a quality that Will be a credit to him and to the Institute. The preparation of a good paper fre¬quently leads to a reorientation of the author's thoughts, and publication con¬tributes much to the professional standing of the author. Members are urged to submit papers presenting the results of their work. Attention to the following sugges¬tions will greatly further the prompt and efficient handling of manuscripts. 1. SUBJECTS: The subject must be within the field of the Institute.

Jan 1, 1943

By James T. Gow, Oscar E. Harder, Anton de S. Brasunas

This paper deals with the results obtained and the techniques employed in determining: 1. Liquidus and solidus temperatures of the HH and HT type heat-resistant alloys. 2. The relation of true temperatures (thermocouple) to apparent temperatures (optical pyrometer) for the molten HH and HT type alloys. This work was the outgrowth of needing to know something definite about these temperatures in order to study the effect of pouring temperatures, shake-out times, and heat-treatments on the properties of some heat-resistant alloys. The information developed is thought to be of interest to industry for guidance in foundry practices and the industrial heat applications of the alloys. This paper is based upon work that has been done for the Alloy Casting Institute at Battellc Memorial Institute. Liquidus and Solidus Temperatures of HH and HT Type Alloys Experimenta1 Procedures Temperature-time curves were obtained during the cooling and solidification of several HH and HT type alloys. The metal was melted in an Ajax high-frequency, induction furnace and poured into a core-sand mold for cooling. The temperature measurements were obtained by means of a platinum, platinum-rhodium thermocouple contained within a fused silica sheath, which was extended through the side wall of the dry core-sand mold to a point at about the center of the mold cavity, which was 3 in. in diameter by 5 in. deep. The cold junction of the thermocouple was kept in an ice bottle, and the temperature was recorded automatically on a direct-reading potentiometer recorder. Through a switching arrangement, the temperature recorded was checked occasionally with a portable Leeds and North-rup potentiometer indicator. Less than a 5°F. variation in the two instruments was always found. This is within the limit of accuracy of readings. The thermocouple used was checked for accuracy against a standard couple, both before use on this work and after completion of the work, by the instrument laboratory. Temperature-time Cooling Curves Fig. I is an enlarged reproduction of a part of one of the cooling curves over the temperature range of 2600' to 2200°F. for an alloy of the HT type with 0.45 per cent carbon, 16 per cent chromium, and 36 per cent nickel. This is a typically shaped cooling curve as obtained for the alloys. It will be noted that two temperatures "re shown on Fig. I for the liquidus temperature. It is thought likely that the higher temperature, A, at the point at

Jan 1, 1945

By Richard W. Smith

Kyanite, long known to occur in Georgia, did not excite coimmercial interest until about 1930. Investigation1 revealed two main types of deposits: (1) separate kyanite crystals embedded in mica schist; and (2) crystal aggregates of kyanite associated with quartz in small and very irregular veins. The second kind at first sight appeared to be the best source of supply. Large boulders or dornicks of kyanite with more or less quartz were found on the surface at many places throughout the Piedmont and Highland sections of the state, but prospecting failed to disclose a sizable vein. These dornicks seem to be a surface accumulation from small veins or lens-shaped masses not more than one or two feet thick, and with a horizontal extent of not more than a few feet. 'rile larger surface accumulation of kyanite dornicks, where not too badly stained by iron oxide, may prove to be marketable, but it is extremely doubtful whether a vein large enough to mine will ever be found. In 1932 deposits of the kyanite-mica schist were known to occur in two places northwest of Clarkesville, in Habersharn County. In 1934, at the request of and in cooperation with the Georgia Geological Survey, the United States Geological Survey made a thorough investigation2 of the deposits and found that the two known areas of kyanite-mica schist in Habershain County were but a part of an unsymmetrical, U-shaped belt (Fig. 1) with a western limb extending into Rabun County and somewhat longer than the eastern limb. The total length of the belt is about 30 miles. The width of outcrop ranges from 100 ft. to 1/4 mile or more. Deposits of kyanite-mica schist of very doubtful commercial importance were found in several other counties. Only the deposits of this kyanitc-mica schist belt in Habersham and Rabun counties will bc discussed in this paper. Geology The kyanite-mica schist of Habersham and Rabun counties occurs near the northern cdge of the Piedmont Upland in metamorphic rocks of pre-Cambrian age3. These rocks probably were deposited as sedimentary

Jan 1, 1938

By Richard W. Smith

Kyanite, long known to occur in Georgia, did not excite coimmercial interest until about 1930. Investigation1 revealed two main types of deposits: (1) separate kyanite crystals embedded in mica schist; and (2) crystal aggregates of kyanite associated with quartz in small and very irregular veins. The second kind at first sight appeared to be the best source of supply. Large boulders or dornicks of kyanite with more or less quartz were found on the surface at many places throughout the Piedmont and Highland sections of the state, but prospecting failed to disclose a sizable vein. These dornicks seem to be a surface accumulation from small veins or lens-shaped masses not more than one or two feet thick, and with a horizontal extent of not more than a few feet. 'rile larger surface accumulation of kyanite dornicks, where not too badly stained by iron oxide, may prove to be marketable, but it is extremely doubtful whether a vein large enough to mine will ever be found. In 1932 deposits of the kyanite-mica schist were known to occur in two places northwest of Clarkesville, in Habersharn County. In 1934, at the request of and in cooperation with the Georgia Geological Survey, the United States Geological Survey made a thorough investigation2 of the deposits and found that the two known areas of kyanite-mica schist in Habershain County were but a part of an unsymmetrical, U-shaped belt (Fig. 1) with a western limb extending into Rabun County and somewhat longer than the eastern limb. The total length of the belt is about 30 miles. The width of outcrop ranges from 100 ft. to 1/4 mile or more. Deposits of kyanite-mica schist of very doubtful commercial importance were found in several other counties. Only the deposits of this kyanitc-mica schist belt in Habersham and Rabun counties will bc discussed in this paper. Geology The kyanite-mica schist of Habersham and Rabun counties occurs near the northern cdge of the Piedmont Upland in metamorphic rocks of pre-Cambrian age3. These rocks probably were deposited as sedimentary

Jan 1, 1938

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By Ta M. Li

How do you convert a copper-zinc resource into a viable economic mining operation? This problem, unlike most, was complicated by the additional presence of a sub-arctic climate, highest labor costs in the world, low-grade copper-zinc values, depressed market prices, and a complex mineralization.

Jan 12, 1977

By W. V. Vietti, E. P. Hayes

OpeRations on the Texas Gulf Coast during 1936 increased materially over 1935. A number of new fields were discovered and a few of the older fields were extended, both by the discovery of deeper pay sands and by lateral expansion of the known producing horizons. Twenty-seven new fields have been discovered, of which 25 are oil fields and the others are gas fields that have every indication of becoming oil-producing areas. Amelia, Anahuac, Bay City, North Pettus, Placedo, Pickett Ridge and Tomoconnor have had major extensions. Production for 1936 amounted to 91,224,844 bbl., an increase of 21,627,033 bbl., or 31 per cent, over the 1935 production of 69,597,811 bbl. The number of producing wells at the end of 1936 was 6727, as compared with 4851 at the end of 1935. Proration has continued in force, thus decreasing the rate of depletion and the number of abandonments normally expected. New Fields A brief discussion of the new fields follows, in addition to Tables 1 and 2, which contain the general data on these fields. Aransas (McCampbell).-Buckingham and McCampbell No. 1 McCampbell was drilled to 7501 ft., then plugged back to 6560 ft. and completed in the Marginulina for a 100-bbl. flowing well on July 18. Bee County.—The Voss field, discovered by Swiger and Devonian's No. 1 Voss, and the Holzmark field, discovered by Miller and Donzis on the Holzmark farm, are both of the same type structurally and are caused by folding against a fault, one field being on one side of a fault and the other on the opposite side of the same fault. Brooks County.—-Standard Oil Company of Texas Garcia No. 1, the discovery well in the Alta Mew field, and Dick Young's Singer No. 1, the discovery well of Alta Verde, appear to indicate small fields. Garcia No. 1 was drilled to 8022 ft. and plugged back to 2485 ft., at which depth the well made 189 barrels. Lockridge.—This gas field was discovered by Gulf Production Company's Fairfield No. 1, in Brazoria County. It was originally drilled to

Jan 1, 1937

By F. B. Plummer

THE physical properties of oil-producing sands, such as grain size, porosity, and permeability, are becoming more and more important in petroleum production engineering as oil fields are being repressured and rejuvenated. A number of excellent papers have been published recently on all three of these properties. Faucher, Lewis and Barnes1 give a com-plete survey of the work done through 1932 and contribute also much information on sands that they themselves have examined. Muskat and Botset,2 Wykoff, Botset, Muskat and Reed,3 Hurst,4 and Muskat5 have contributed a great deal to the theory and actual measurement of flow of liquids and gases through porous media. Muskat and Botset have measured the permeabilities of different sands with gases and liquids. They find that the radial is always slightly under the linear permeability. However, in most of the previous experiments small samples of the sand were used, and the method of production of fluid or gas through the sands has not been very close to actual oil-field conditions. In addition, so far as the authors are aware, no measurements of linear and radial permeabilities have been made simultaneously under exactly the same conditions. The multiple permeability apparatus described here is a part of the equipment being acquired by this laboratory for thorough investigation of the physical properties of producing sands. It possesses certain advantages for comparative studies of liquid flow. Additional data and descriptions of other instruments will follow in papers to be written later on. The essential features of the permeability apparatus are as follows:

Jan 1, 1934

By C. L. Mantell

ALTHOUGH SO common and well known a metal, tin is really a less abundant element than many of those less familiar and usually ranked with the scarce or rare elements, such as cerium, yttrium, lithium, beryllium., titanium, zirconium and vanadium. The color of tin is white, with a slightly bluish tinge. When it is compared with nickel, the latter metal is brown. When placed alongside of tin, chromium is definitely blue. Tin is whiter than silver or zinc. Exceedingly thin films of tin show various shades of brown by transmitted light. The metal has a brilliant luster, and when mirror-polished, has high light reflectivity. The luster depends to a large extent upon the pouring temperature at which the metal is cast. If the temperature be, too high, iridescent colors may show on the surface. These are the result of oxide film formation. If the pouring temperature be too low, the surface is dull. Small amounts of foreign metals, such as lead, arsenic, antimony and iron, decrease the luster of tin and impart a yellowish tinge to the metal. The structure is decidedly crystalline. The cast metal is a mass of crystals. When a bar of tin is bent, it emits a characteristic creaking sound. This is called the "cry" of tin, resulting from the grinding of the crystals one against the other during the bending of the metal. Tin metal may lose its crystalline structure by cold working, but grain growth occurs rapidly under the influence of heat. Metal which has been cast at a low temperature may become amorphous as the result of mechanical work. If such material be heated to temperatures well. below the melting point, say at 110° C. for a half hour or for a few minutes at 150° C. recrystallization occurs. If the surface of tinned plate, tin foil, or tin metal in cast form be etched with hydrochloric acid containing a little free chlorine, attack occurs at the intercrystalline faces. The surface shows patterns resembling the frost flowers on window panes in winter. The etched appearance is called moiré metallique. Fine dendritic surface crystals of tin may be obtained by casting the metal on a surface of polished steel. In commercial tin plate, the intercrystalline boundaries are shown by fine grooves or channels, which result from the method

Jan 1, 1929

By E. C. Carris

THE particular field of application of machines utilizing air cur¬rents as the primary separating medium is in the cleaning of the fine sizes of bituminous coal. Approximately 12,000,000 tons of bituminous coal were cleaned by air machines during 1940. They have not found any application for cleaning anthracite. Since the development and introduction of the first successful com¬mercial pneumatic oscillating machine for cleaning bituminous coal in 1916, by the Sutton, Steele and Steele Co., Dallas, Texas, and the Ameri¬can Coal Cleaning Corporation, formerly of Welch, W. Va., four other successful pneumatic coal-cleaning machines have been developed and introduced to the American coal-mining industry: 1. Peale Davis: "Pneumo-Gravity" machine, 1924. 2. Arms "Concentrator," oscillating table, 1924. 3. Heyl and Patterson oscillating table, 199.7. 4. "Stump Air-Flow," pulsating air jig, 19391. Out of these five developments only the Sutton, Steele and Steele, or American Oscillating, and the Stump Air-Flow Jig remain on the market. They are the predominating pneumatic coal-cleaning machines in use in the United States. HISTORY OF AMERICAN TYPE SEPARATOR The first successful American machine, the CJ table (Fig. 1) was developed by the Sutton, Steele and Steele Co. The SJ table was the first standard model designed specifically for the cleaning of coal. It was installed in the original Crane Creek plant, owned and operated by the American Coal Co. at McComas, West Virginia. This plant was designed by The Roberts and Schaefer Co., Chicago, Ill., working in cooperation with the American Coal Cleaning Corpora¬tion, which had taken over the patent rights and sale of the pneumatic separators. Eight machines were installed in this plant. They were known as the type SJ. They were 60 by 84 in., the short dimension being the width of

Jan 1, 1943

By AIME AIME

THE American copper mining industry is threatened with disintegration and destruction. This threat is not one which may only materialize in the distant future. The destruction has already commenced. At present, many domestic mines have already closed down. .Others are operating on a greatly curtailed basis. Those operating are doing so only at tremendous loss-because the selling price of copper is below the cost of production and rapidly diminishing financial resources and credit clearly forecast the early suspension of operations in most of the industry. Unemployment in the mining districts is increasing by leaps and bounds. While this condition is due in some measure to the present unsatisfactory state of business in general, the copper industry, unlike other lines of business, sees no possibility of recovery without definite aid. The fundamental, underlying cause of present conditions in the American copper mining industry is the unprecedented rise in foreign production, and the basic change which has taken place in the world copper industry in the last three years. The American industry had begun to feel this change early in 1929 long before the general collapse of business in the fall of that year. While the distress in the industry is undoubtedly aggravated by the present economic depression, it nevertheless would have arrived and. have been present at this time, regardless of general business conditions.

Jan 1, 1932

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By Scott Turner

AS IN OTHER lines of engineering, progress in mining was influenced during 1931 by the world-wide economic depression. Low-metal prices ? resulted in active efforts to reduce production costs of base-metal mines. Probably the chief factors in reducing costs were the greater efficiency of labor, due to better relations between management and workmen, to the scarcity of jobs, reduced wages in most base-metal mines, and to lower overhead expenses secured by drastic economies. The use of mechanical equipment continued to increase, due to more efficient designs and a better practical understanding of the applicability of such equipment to requirements. With one exception, there were no startling innovations in stoping methods, but there was notable progress in the better adaptation of mining methods. In the United States, no large new base-metal or silver mines came into production during the year. At a number of mines, output was curtailed, and operations were discontinued at several important producers. On the other hand world-wide interest in gold was stimulated, as evidenced by increased output from producing mines, the reopening of some old properties, and intensive prospecting for new deposits. Mining methods at several gold mines in the United States and Canada were modified or changed to obtain a higher extraction of ore or to meet the need for additional support of the mine workings at depth. Permanent record of improvements in mining practices has been made during the year by the Federal Government; the industry thus has available for its use more detailed information than ever before. This work was done through cooperation of the mining companies and their representatives with the United States Bureau of Mines, whereby many papers descriptive of practices and costs at individual mines have been published. The Bureau's program of describing methods and costs at the more important mines (those producing in excess of $100,000 annually) is nearly completed, but papers will be issued concerning such additional mines as may possess particular interest because of novel methods, exceptional conditions or operating results, and others to supplement reports already issued. In this way, an interesting record of the results of changing conditions, or innovations in methods, will be made available.

Jan 1, 1932

By A. A. Smith, J. S. Smart

THe elements silver, cadmium, tin, antimony and tellurium either are found as impurities in commercial coppers or are intentionally added to produce coppers for special uses. When present in small quantities, each of these metals exerts a significant effect on the properties of copper, but despite considerable experience and investigation much remains to be learned about their specific behavior. The presence of extraneous elements, particularly oxygen, complicates the study of individual additions of impurities in the range o to 0.05 per cent, and the use of high-purity copper has been found extremely helpful in circumventing these difficulties. It has also been found that individual behavior can be satisfactorilv determined from measurements of two commercially important properties, conductivity and softening temperature, according to methods that have been described previously.1,2 Data of this type, obtained in the course of a general investigation of the effects of impurities on the properties of both oxygen-bearing 2nd oxygen-free copper are presented herewith. All samples except those containing cadmium were prepared as 3/8-in. continuously cast oxygen-free rod from pure copper and weighed amounts of a similarly synthesized master alloy. Composition was checked by chemical methods, which in every case verified the calculated analyses. Test wires were cold-drawn one B, and S. number per pass on a string-up machine using four 30-min. 600°C. anneals at 0.3125, 0.257, 0.204 and 0.162 in. and a final cold reduction of 75 per cent to 0.081 in. Some oxygen-bearing samples were produced directly from the 3/8-in. oxygen-free rods by diffusion from a surface scale at 850°C. and drawn to size as listed above, but most of the alloys were remelted in pure graphite and cast through air into a I-in. round mold. The slugs were then hot-rolled to 5/16 in., drawn to 0.162 in., annealed as listed above, and drawn to 0.081 inch. Conductivity wires were annealed for I hr. at 100°C. intervals between 300' and 800°F., using a hydrogen atmosphere for oxygen-free samples and purified nitrogen for the oxygen-bearing type. All samples were quenched from the annealing temperature in 10 per cent H²S04 and conductivity was measured on a Hoopes bridge that had been checked against a Kelvin bridge. The softening temperatures represent the half-hard stage of the annealing curve as determined by a standard procedure.' Effect of Silver Numerous excellent studies of the argentiferous coppers are found in the literature, and these have been adequately

Jan 1, 1943