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By Wils L. Cooley

The report covers several aspects of mine safety ground systems, primarily for underground coal mines. The design of a combined ground fault-ground check monitoring system is presented. An analysis is made of grounding systems for dc shuttle cars. Complete resistance data and results of physical inspections of self-salting ground rods are presented. A detailed resistance and economic analysis is presented for the use of composite materials for building inexpensive and effective ground beds in high-resistivity areas. The desireability of penetrating the coal seam with a borehole safety ground is investigated. A report is made of a Mine Substation Grounding and Bonding Workshop.

Jan 1, 1980

By J. Riss, S. Gentier, A. Marache

The study of the hydromechanical behaviour of fractured rock masses requires a detailed knowledge of the isolated fractures. The aim of the paper is the simulation of the evolution of the void space, located between both walls of a fracture, during a shear test under constant normal stress. Results of the mechanical simulation model are first validated then analyzed in detail. We observe that, during the shear process, there is an opening of the fracture with the creation of preferential channels. These channels are determined at the early phase of the shear process (pre-peak phase), and we observe during the post-peak phase that void areas increase in size rather than the creation of new apertures. Die Untersuchung des hydromechanischen Verhaltens eines zerlegten Felsmassivs erfordert genaue Kenntnisse der einzelnen Spalten. Ziel dieses Artikels ist die Simulation der Evolution des Hohlraumes zwischen den beiden Wänden eines Spaltes während eines Abscherungsexperimentes unter konstantem senkrechtem Druck. Die Ergebnisse der Modellierung werden zunächst mit dem Abscherungsexperiment verglichen und dann im Einzelnen ausführlich analysiert. Während des Abscherungsprozesses tritt eine Öffnung des Spaltes auf, die die Bildung von bevorzugten Fliesswegen fördert. Diese Kanäle werden bereits in einer frühen Phase des Abscherungsprozesses (pre-peak Phase) festgelegt. In der post-peak Phase tritt dann eher eine Vergrößerung dieser Kanäle, als die Bildung neuer Hohlräume auf. L’étude du comportement hydromécanique d’un massif rocheux fracturé ne peut se faire sans une connaissance approfondie des fractures le constituant. L’étude présentée dans cet article concerne la simulation de l’évolution de l’espace des vides présent entre les deux épontes d’une fracture au cours d’un essai de cisaillement à contrainte normale constante. Les résultats du modèle sont tout d’abord validés puis analysés en détail. On constate que, au cours du cisaillement, il apparaît une ouverture de la fracture permettant la création de chenaux préférentiels. Ces derniers sont déterminés très tôt dans le cisaillement (phase pré-pic), et on observe dans la phase post-pic davantage un accroissement de la taille des chenaux plutôt que la formation de nouvelles zones de vides.

Jan 1, 2003

By J. R. Cobble

As part of the Federal Bureau of Mines project to develop new or improved materials for metallurgical furnace applications, the Tuscaloosa (Ala.) Research Center has conducted research to develop a reproducible laboratory test for evaluating the resistance of refractories to molten slags. Tests were conducted with a slag representative of slag used to produce mineral wool. A rotating cylindrical furnace was lined with the brick being tested, and it was operated at temperatures up to 1,660° C for periods ranging from 8 to 32 hours. The effects of such variables as slag temperature, rotational velocity, charge rate, and contact time on refractory erosion were determined. The research demonstrated the reproducibility of the test procedure developed.

Jan 1, 1980

By W. L. Garrison

Improvements continue to be made in rapid excavation and tunneling technology. There are several ways to examine the impacts of such improvements. The most common procedure is to monitor current developments and to evaluate prospects for expansion of present types of uses. Other approaches are called for, however, if the technology might be used in ways not now imagined, if the search is for information for managers of technology development, and if the issue is that of the wise use of the technology by society. The first section of the paper will pose these matters as questions. These questions will be examined from the point of view of the processes of technology development and utilization, and then further examined against the backdrop of processes at work within the urban area. Such an examination will provide insight into the way technology developments should proceed. The final section will present some comments that may be useful to those guiding the development of the technology and to those who might provide leadership for its wise utilization. THE QUESTIONS Three questions are posed: 1. Are there uses for the technology beyond further penetrations of its present markets? 2. Can information be supplied to managers of technology development so that they may improve the assignment of priorities among development choices? 3. How can society make wiser use of the technology?

Jan 1, 1974

By Frank B. Fulkerson

A study was made of scrap iron and steel in the South Central States in order to determine trends in processing, shipment, and consumption of this important commodity. These data were derived in part from statistical sources and in part by visits to scrap yards and steel mills. Trends in the industry were reviewed. Dealers in 1963 supplied 1.8 million tons of iron and steel scrap to steel mills and foundries in the south-central area, compared with 2.1 million tons in 1955. Most of the scrap was processed and shipped within 200 to 300 miles of consuming centers. Exports provide a principal outlet for dealers along the gulf coast. Most of the scrap that fills these orders is loaded onto freight cars at yards in Texas and Louisiana and -is shipped to ports for direct transfer from railroad car to ship. The tonnage exported varies greatly from year to year. The largest scrap operations are in or near large cities which are heavy scrap generating areas, steel mill sites, or port cities for export of scrap. A tentative analysis indicates that the short-run supply of prepared scrap is inelastic to price changes; therefore, buyers probably arc in a strong bargaining position at times of declining demand. One technological development in the iron and steel scrap industry is the use of large presses which can take complete automobiles with frames, wheels, springs, and other heavy parts still intact and reduce them to bundles. At Houston, Tex., and Kansas City, Mo., shredding plants are in operation that reduce car bodies and other light scrap into flat pieces 4 to 6 inches in size.

Jan 1, 1966

By J Hadijigeorgiou, R. W. Lawrence, R Pouling

The layered co-mingling method involves the disposal of waste rock with the addition, at predefined construction stages, of layers of dewatered mine tailings. The resulting waste structure displays bulk properties that are more favourable to acid rock drainage (ARD) control than the constituent materials alone. A laboratory test programme was conducted to examine the potential of this method. Columns containing different configurations of waste rock and tailings were percolation leached for 40 weeks and the leachates examined for various parameters. In the short term the chemical reactions that result from the introduction of dewatered tailings into rock waste can significantly improve the quality of the drainage. Columns with co-mingled material produced leachate with pH levels of 8, whereas leachate from the control column containing waste rock alone had a pH of 4. Larger-scale field tests are planned to determine the effect of the disposal method over the longer term

Apr 1, 1996

By J. A. McLennan

Nickel laterite deposits are typically formed from tropically weathered mafic-ultramafic complexes. The resulting nickel concentration is found within soil horizons and is mineable with regular dozer units. At the time of mining, digging elevations are needed at selective mining units (SMUs). Moreover, for mine planning, the costs due to dilution and lost ore require mining elevations to be specified. A conditional simulation approach is used to calculate ?optimum? SMU mining elevations. Multiple realizations of the ore base surface are simulated. For a single bottom surface realization, dilution and lost ore costs are calculated over the entire vertical extent of each SMU. The optimum mining elevation is the elevation where the lowest summed cost of ?accepting dilution? and ?wasting ore? occurs. The reported SMU dilution is the cost of mining the volume of waste located below the bottom surface and above the optimum mining elevation and the reported SMU lost ore is the cost of not mining the volume of ore above the bottom surface and below the optimum mining elevation. For all ore bottom surface realizations, optimum SMU mining elevations and their associated dilution and lost ore costs are calculated and compiled to represent production uncertainty.

Apr 1, 2005

By Dennis J. Riley

A. This outline addresses what a sub-contractor, or a subsub-contractor should do to get paid in the event the general contractor or building owner files for bankruptcy. B. Negotiating payment terms. Progress payments vs. "pay when paid". How a sub or subsub can avoid financing the contract. C. Court interpretation of "pay when paid" clauses allow postponement not excusal of payment. See, e.g., Seal Tite Corporation v. Ehret. Inc., 589 F. Supp. 701 (D.N.J. 1984) (where the court held that the general contractor could not delay payment indefinitely to the subcontractor in the event of non-payment from the owner); United Plate Glass Co. v. Metal Industries. Inc., 525 A.2d 468 (Commw. Ct. Pa. 1987) (where the court held that payment from owner was not a condition precedent to paying subcontractor but instead a timing mechanism indicating when payment should be made); But see. Straham v. Landis Construction Co., 499 So. 2d 417 (La. App. 4 Cir. 1986) (where the court strictly interpreted the "pay when paid" clause).

Jan 1, 1991

By David R. Beadman

The Fleming method is widely used for the analysis and prediction of single pile behaviour under maintained loading. The method does not distinguish between bored and driven piles. Driven piling avoids the need to dispose of spoil from the pile installation and is therefore becoming increasingly attractive. This paper considers the theoretical effects of the possible preload at the base of a driven pile after installation, using the hyperbolic functions as defined by Fleming. The Fleming method is reviewed and the equations and analyses are adapted, using spreadsheets, to allow for a possible preload. The simplifying assumption of the effect of the elastic compression of the pile is also reviewed and a more analytical method adopted to assess the elastic compression. Some driven pile test data is analysed to consider the possible effects of the preload on the performance of a driven pile and to test the theoretical relationships that are developed in the paper.

Jan 1, 2006

By G. M. Steed, A. O. Oyinloye

The deposit lies in amphibolite-facies biotite granite-gneisses of Proterozoic age, 4 km east of a major crustal break known as the Ifewara-Zungeru fault. Gold mineralisation is contained in a zone of quartz-carbonate (mainly calcite) veins and hydrothermally altered gneisses with associated small-scale intrusions along a steeply dipping second-order fault zone that roughly parallels the main fault. Gold is present mainly at grain boundaries between quartz and carbonate as discrete particles up to 100 micrometres in size, in general association with sparse, scattered pyrite, pyrrhotite and some base metal sulphides. Adjacent to the gold-bearing zone the granite-gneisses have been hydrothermally altered with minor volume increase, most notable enrichment being in K2O, S, Pb and Cu (and Au). High concentrations of Th, Y, Ce and Zr in the granite-gneisses imply derivation from S-type granites. It is likely that their high heat production capacity maintained the high temperatures needed to transport gold in the hydrothermal systems. It is most probable that the mineralisation dates from the Pan-African orogeny (650-450 Ma)

Apr 1, 1996

By Forrest T. Moyer

INJURY experience and related employment information are presented in the chapter for the coal-mining, coking, oil and gas, peat, and native asphalt industries in the United States for 1964. No attempt has been made to combine these data and present injury-frequency rates reflecting the mineral-fuel industries because the hazards of the separate industries are not comparable. All rates in the text are calculated separately on data before rounding, hence component rates may not add to the total rates shown in the tables. Tabulations showing the trend of injuries and employment for all mineral industries are presented in Volume III. COAL Injury experience of the coal mining industry was improved in 1964, as measured by the declines of 1 and 14 percent, respectively, in the frequency and severity rates. Although the total number of injuries increased in 1964, a slightly greater proportional increase in man-hours worked caused the frequency rate to drop to 44.65 per million man-hours. The injury-severity rate in 1964 was 7,832 days lost per million man-hours of exposure. Employment and injury data for 1964 are based on final data for anthracite mines and preliminary data for bituminous coal and lignite mines. Fatality experience improved significantly with a record low number of 240 deaths in 1964. This total was 44 less than in 1963. The Nation's coal mines during 1964 were free of major disasters (a single accident resulting in the death of five men or more) for the first time since 1956. The

Jan 1, 1965

By Charles L. Guild

I will add a few facts about the use and development of the Osterberg Test Load Cell and my association with Jorj. I first met Jorj in 1965 when the Guild Construction Co. drove 12" diameter cast-in-place shell piles for him at the Marquette Cement Co. in Nashville, Tennessee. When I met Jorj at the DFI Trustee's meeting in 1985 at Longboat Key, Florida, he showed me a sketch of his idea about using a test cell at the bottom of a caisson to test the end bearing and side friction on a caisson. He had made a successful trial test in Case International's equipment yard and wondered whether a similar device could be made for a driven pile. At first I was skeptical that it could be done but after thinking about it overnight I told him I felt it was feasible and we would do some work on it. At that time, there was a large bridge job going out for bid in Rhode Island using 14" square prestressed concrete piles'. Based on a record of the Guild Construction Co. Inc. driving over 3,000,000 feet of piling on work for the State of R.I., we felt we would have an excellent chance to be allowed to use them so we designed, detailed and fabricated three for 14" square prestressed concrete piles. As things worked out, we did not test them on this job and have not to date.

Jan 1, 1989

By J L. Mauk

The Gladstone Hill area hosts epithermal veins similar to those at Martha Hill, which is less than one kilometre away. There are several vein types in the Gladstone Hill area including (1) pyrite-marcasite, (2) quartz, (3) base metal sulfide, and (4) calcite. Pyrite veinlets formed first, whereas the quartz and carbonate veins formed later. The base metal sulfide vein occurs at depth and is predominantly comprised of quartz and chlorite intimately intergrown with pyrite, sphalerite, galena, and rare chalcopyrite. Platy calcite and massive calcite veinlets were the last vein types to form. Several vein textures occur in the Gladstone Hill area, including colloform and crustiform banding, lattice-bladed, zonal, comb, massive and feathery textures. Crustiform banded veins are the dominant texture and contain variable gold-silver grades. Colloform banded veins consist of ubiquitous quartz and minor chalcedony with gold grades as high as 60 g/t. The lattice-bladed texture forms from the deposition of calcite, which has been replaced in many samples by quartz, indicating that boiling and later cooling has taken place. Unreplaced platy calcite only occurs at deeper levels (>300 m). Zonal and comb textures are preserved in quartz and late-stage amethyst veins. Feathery textures within quartz are commonly associated with breccias and some colloform banding, and with significant Au-Ag grades.   The homogenisation temperatures (Th) of primary and secondary inclusions in quartz, amethyst and platy calcite range from 166 to 274¦C, with salinities <1.3 wt% NaCI equiv. The presence of vapor-dominated inclusions and primary fluid inclusions in platy calcite suggests that boiling occurred intermittently throughout deposition. The veins formed under a relatively flat lying paleowater table that occurred 280 - 300 m above sea level. The fluids involved in vein formation were alkali chloride in composition and low in CO2.

Jan 1, 2001

By David Smith

Construction of a new transportation link frequently requires crossing under an existing highway or railroad. Although traffic diversions may permit a cut and cover structure to be built, ‘zero impact’ tunnel solutions are becoming increasingly popular. The vertical clearance between the new tunnel structure and the existing highway or tracks may be very low; sometimes less than two meters. This leaves little room for error since any ground loss can rapidly translate into surface settlement. Problems can be avoided by maintaining the stability of the tunnel face and by minimizing ground movement around the tunnel lining. This paper examines construction methods that have been used to construct short tunnels with shallow cover, and highlights factors to be considered for future projects.

Jan 1, 2005

By Job Goostray

IN THIS paper, as in so many other discussions of historical nature, there is little chance for original material and much has had to be rewritten from older papers, documents, accounts, reports, and the like, some of which are of doubtful authorship or contain conflicting statistics. Fully aware of these little historical pitfalls, the authors have tried to quote the origin where possible, and also to seek further confirmation when the statement warranted it, but cannot assume responsibility for certain facts and dates. The Encyclopedia Britannica was frequently consulted. The authors wish to acknowledge assistance from MacKintosh-Hemphill Co.-formerly the Fort Pitt Works-and also from officials of the Watertown Arsenal who loaned valuable books and gave much necessary information. They are particularly indebted to Colonel Dixon of that institution. The data on modern guns were furnished by Mr. F. Brauer of the Watertown Arsenal; Mr. H. S. Chaffee assisted by obtaining records and data of work carried on by the Builders' Iron Foundry of Providence, R. I.

Jan 3, 1925

By Don Phelps, Dean Brox, Peter Procter, Andy Saltis, Tom Morrison, Jeff Pringle

The Greater Vancouver Water District is currently constructing the Seymour-Capilano Water Filtration Project to enhance the quality of drinking water in the Vancouver metropolitan area. The Seymour-Capilano Water Filtration Project comprises the 1,800 million litres per day Seymour-Capilano Filtration Plant, the 1,080million litres per day Capilano Pumping Station, twin tunnels with associated shafts, and the Capilano Energy Recovery Facility. The twin tunnels will convey raw water under pressure from the Capilano Reservoir to the Seymour Filtration Plant and return treated (filtered) water for distribution. The Twin Tunnels component of the project comprises twin, 3.7 m diameter, 7.2 km TBM bored tunnels, the 180 m deep Seymour Shaft as the main launch shaft, and two 4 m diameter, 268 m deep raise bore exit shafts at Capilano. The Twin Tunnels have been planned as predominantly unlined tunnels sited at depth entirely within granitic bedrock and cross under two major buried glacial valleys of breadths in excess of 1500 metres that are filled with glacial sediments to depths up to 200 metres. The maximum overburden along the tunnel alignment is approximately 400 metres. Comprehensive site investigations and studies were completed during the detailed design stage of the project. The construction of the twin tunnels started in the fall of 2004 and is planned to be completed by mid-2008.

Jan 1, 2005

By H A. Challenor

Eyewash safety showers located in remote hot environments may be unsafe to use due to excess water temperature and high risk levels of water borne bacteria such as Legionella. Australian Standard AS 4775 specifies that dispensed water shall be bacteria free and have a maximum temperature of 37.8°C. Legionnaires disease is contracted when water aerosols containing Legionella bacteria are inhaled.Laboratory tests show 30 to 70 times more aerosols are generated by showers operating at 38°C than with showers operating at 25°C. Furthermore, excess temperature in flushing water can cause burn injuries leading to hospitalisation, skin grafts and/or permanent scarring. Excess temperature also increases the rate of reaction to corrosive substances, opens pores in the skin to allow greater dermal penetration and can cause dizziness and fainting by dilating blood vessels and reducing blood pressure.CITATION:Challenor, H A, 2017. Managing excess temperature and high risk levels of Legionella bacteria in eyewash safety showers, in Proceedings Iron Ore 2017, pp 337–346 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By Mohammed Y. Fattah, Wissam H. S. Al-Sudani

"During installation of pile, a soil column is formed inside the pile. For small depths, the height of the soil column typically equals to the penetration depth (full coring state). As the penetration depth increases, the developed internal shear stresses become larger and reduce the amount of soil to penetrate. At the same time, the soil in pile at the bottom is compacted. This will continue until at a given moment, the soil column is a soil plug, and does not stop moving relative to the pile. This is because the shear stresses developed in the interior of the pile are greater than the load-bearing capacity of the ground.This paper presents the results obtained from 40 model pile tests carried out to assess the effect of soil plug on the model pile capacity. The piles are embedded in sand of different densities with different lengths of piles and types of pile-ends. The model tests are divided into two parts according to the type of end of the pipe pile used in the model pile test. The first part consists of 32 model open-ended piles with different lengths of soil plug inside the pile. The second part consists of 8 model closed-ended piles.It was concluded that open-ended pipe piles behave as a closed-ended if the soil plug formed inside piles in state partial plug or full plug. Length of soil plug depends on the type of installation and relative density. The pile load carrying capacity in dense sand is several times greater than those in medium sands especially in cases of closed ended piles or open-ended since the pipe pile can produce external and internal skin friction in addition to end bearing resistance that makes the total pile capacity close to that of closed-ended pile. Whether open-ended piles are driven or pressed in the fully coring - fully unplugged mode or in the partially plugged mode, the plug does contribute to static pile base capacity."

Jan 1, 2014

By E. M. Shemang, C. E. Suh, L. Mbinkar, University of Yaounde

"Two iron deposits within the Precambrian mineral belt of Cameroon are described in detail for the first time: the Archean Metzimevin replacement iron deposit enclosed in Fe-enriched itabirite, and the Proterozoic granite-hosted, shear zone-related Mayo Binka magnetite deposit. In the Metzimevin de¬posit, quartz is corroded and microplaty hematite overprints martite-textured hematite. The Mayo Binka massive magnetite veins show evidence of deformation in magnetite (fracturing and microbrecciation) and in overgrowths of specular hematite (mechanical twinning and undulating extinction). The magnetite is partially replaced by hematite (martitization) and goethite. Ores from both deposits have >88% total Fe2O3 and low contents of contaminants such as SiO2, Al2O3, MgO, CaO, P2O5, and TiO2. They are also poor in Cu, Pb, Zn, V, Cr, and Ni. The Metzimevin massive hematite is characterized by an accentuated light rare earth element depletion relative to the Fe-enriched itabirite. It is suggested that the Metzimevin iron deposit is the result of hypogene leaching of gangue minerals from, and further hematitization of, an itabirite protore. Although the genesis of the Mayo Binka massive magnetite is unclear, it is spatially related to Neoproterozoic granitic rocks. The data allow some comparison of these little known, but pot¬entially economic iron deposits, with some of the world’s better investigated deposits, and are useful to the exploration efforts for iron ore currently underway in Cameroon and the Central African subregion.Deux gisements de fer de la ceinture minérale Précambrienne du Cameroun sont ici décrits en détail pour la première fois : le gisement de fer Archéen de Metzimevin formé par remplacement et encaissé par des itabirites enrichies en Fe, et le gisement de magnétite Protérozoïque de Mayo Binka as¬socié au cisaillement dans un granite. Au gisement de Metzimevin, le quartz est corrodé et de l’hématite en microplaquettes se développe au dépends de l’hématite a texture martitique. Les veines de magné¬tite massive de Mayo Binka présentent des évidences de déformation dans la magnétite (fracturation et microbréchification) et dans les surcroissances d’hématite spéculaire (Macles tectoniques et extinction ondulante). La magnétite est partiellement remplacée par l’hématite (martitisation) et par la goethite. Le minerai des deux gisements contient >88% de Fe2O3 total et un faible contenu en contaminants tels que SiO2, Al2O3, MgO, CaO, P2O5, et TiO2. Il est également pauvre en Cu, en Pb, en Zn, en V, en Cr et en Ni. L’hématite massive de Metzimevin est caractérisée par un appauvrissement relatif en terres rares légères relativement à l’itabirite enrichie en Fe. Il est suggéré que le gisement de fer de Metzimevin résulte du les¬sivage hypogène des minéraux de la gangue ainsi que de l’hématitisation poussée d’une préconcentration de fer dans l’itabirite. Bien que la genèse de la magnétite massive de Mayo Binka demeure obscure, elle est spatialement associée aux roches granitiques Néoprotérozoiques. Ces données permettent de comparer ces gisements de fer peu connus et potentiellement économiques avec certains des gisements mondiale¬ment mieux connus, aidant ainsi les efforts d’exploration présentement en cours en Afrique de l’ouest et au Cameroun."

Jan 1, 2008

By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970