Search Documents

[A discussion suggested by the paper of Mr. James Gsyley on " The Development of American Blast-Furnaces," read at the New York meeting of the Iron and Steel Institute, October, 1890, and reprinted from the Journal of that Society in Bans. A. I. M. E., xix., 932.1 (Cleveland Meeting, June, 1891.) [Kote by the SecretaRy.—The three following contributions to this discussion were communicated by letter to the Secretary of the Iron and Steel Institute, and were received by me too late for insertion in vol. xix. of the Transactions.] FRed. W. Gordon, Philadelphia, Pa.: Mr. Gayley's paper calls our attention to the very expensive blunder hitherto made in blowing too much wind in a given size of furnace. It was quite evident from an analysis of blast-furnace operations that the work we are doing in America is anything but creditable. We were consuming fully 1000 pounds of coke more than is necessary for each ton of iron made, and were hammering the linings of our furnaces out in a very short time, and nothing but the very high price of pig-iron would stand the drain. It had long been my pet scheme to gradually reduce the quantity of air, at the same time increasing the burden to the maximum and decreasing the limestone, and determining, if possible, the fuel economy which might be reached consistently with the maximum production of the furnace. After the success of the Isabella furnace at Pittsburgh, which was remodelled in 1880, the North Chicago Rolling Mill Company had

Jan 1, 1892

By R. E. H. Pomeroy

EARLY in 1917, it became evident, owing to existing and pending market conditions, that a substitute for crude petroleum must be found for firing the smelter furnaces. After a review of the plants then existing, it was deemed advisable to depart from their practice and to adopt the following described system of distributing pulverized coal to the furnaces. The principal advantages of the proposed system, which influenced this decision, were: (1) Equal safety; no pulverized coal is stored at the furnaces; (2) greater ease of operation, furnace fires being controlled by regulating valves in burner branches, as in gas firing; (3) better organization; all machinery, including pulverized coal feed, is under one roof, and the organization is separate from the furnace department; (4) greater cleanliness; all machinery is under vacuum; (5) greater flexibility of application; the coal and air mixture can be piped where needed. The design of the plant is the result of the combined efforts of the local engineering staff and of the machinery manufacturers. Many new features were embodied in this design to insure greater safety, cleanliness, and efficiency of handling. After 14 months of continuous operation, the plant has proved entirely satisfactory. The building is of structural steel, covered with corrugated steel, with many windows and is painted light gray inside and out. The building floor is of concrete with ample drains to the sewer, and the building is equipped with fire and service water piping. Fig. 1 shows the east side of the building and the incline conveyor from the raw-coal bins.

Jan 2, 1920

By L. W. McKeehan, W. C. Elmore

The magnetic powder method, long used for roughly mapping magnetic fields, has recently been refined1, "or investigating the microscopic variations in the surface magnetization of ferromagnetic crystals. Bitter2 first discovered regular powder patterns connected with the crystal structure of such specimens. Several other investigators:' have used Bitter's original technique, with slight modifications, to study the variation of the patterns with variations in the magnetizing field applied parallel to the surface, and their dependence upon the state of strain, of polish and of crystal cut. All of the explanations of these patterns on metallic ferromagnetics have been couched in general terms. In a preliminary report we have described an improvement ill the powder technique which led us to the discovery of a new effect throwing considerable light on the magnetic secondary structure of alpha iron4 and of nickel5 single crystals. We now report additional evidence confirming the existence and stability of a magnetic block secondary structure. Specimens The following list describes the specimens used in the present investigation. Designation Description A1 Silicon ferrite furnished to us by Dr. W. E. Ruder, of the General Electric Co., for which lie gave the following typical analysis: C, 0.05; P, 0.038; S, 0.026; Mn, 0.15; Si, 3.24. Disk, 0.60 cm. diameter, about 0.05 cm. thick. By X-ray analysis angles between disk normal and [100] 75o, [0101 76" [00l] 21o. A2 Same as A1 except: diameter 0.75 cm. A, Same as A1 except: diameter 0.68 cm.

Jan 1, 1936

By L. W. McKeehan, W. C. Elmore

The magnetic powder method, long used for roughly mapping magnetic fields, has recently been refined1, "or investigating the microscopic variations in the surface magnetization of ferromagnetic crystals. Bitter2 first discovered regular powder patterns connected with the crystal structure of such specimens. Several other investigators:' have used Bitter's original technique, with slight modifications, to study the variation of the patterns with variations in the magnetizing field applied parallel to the surface, and their dependence upon the state of strain, of polish and of crystal cut. All of the explanations of these patterns on metallic ferromagnetics have been couched in general terms. In a preliminary report we have described an improvement ill the powder technique which led us to the discovery of a new effect throwing considerable light on the magnetic secondary structure of alpha iron4 and of nickel5 single crystals. We now report additional evidence confirming the existence and stability of a magnetic block secondary structure. Specimens The following list describes the specimens used in the present investigation. Designation Description A1 Silicon ferrite furnished to us by Dr. W. E. Ruder, of the General Electric Co., for which lie gave the following typical analysis: C, 0.05; P, 0.038; S, 0.026; Mn, 0.15; Si, 3.24. Disk, 0.60 cm. diameter, about 0.05 cm. thick. By X-ray analysis angles between disk normal and [100] 75o, [0101 76" [00l] 21o. A2 Same as A1 except: diameter 0.75 cm. A, Same as A1 except: diameter 0.68 cm.

Jan 1, 1936

MODERN mining is based on drilling--everything else stems from that. U. S. and Canadian mining companies and suppliers of mining equipment are constantly seeking new techniques and tools for increased drilling efficiency. Ultimate goal is increased bit-against-rock time. Just how important their efforts are can be seen through a legitimate extension of available statistics. In Canada some 70 million ft of drilling per year is required. While the number of feet actually drilled in the U. S. is unknown, it is possible to compare U. S. and Canadian mineral production, excluding oil and coal. In the U. S. mineral value was $4200 million and across the border $836 million. Taking into account the number of drilled feet required to produce Canada's total, the U. S. total would be 365 million ft in 1953. A saving of 14 per ft would reduce over- all metal and nonmetal mining costs some $3.65 million per year. This does not take into account other indirect savings. Methods have changed and there have been structural and metallurgical advances in blasthole practice in the last ten years. The Editors of MINING ENGINEERING in the articles on the following pages present the most significant innovations coupled with results in the field. Environment plays an important role in selection of materials and equipment -but while unanimity does not exist throughout the industry in reference to drilling problems, a definite trend is evident. For the story of that trend read the articles on the following pages.

Jan 9, 1954

By Albert E. Greene

Processes for the removal of phosphorus from iron or steel are steadily assuming greater importance in view of the abundance of high-phosphorus iron-ore and the diminishing supply of pure ore. In the present methods of removing phosphorus by the basic open-hearth or basic Bessemer process, or even by electric processes, complete control over the metallurgical conditions is either impossible or has not yet been realized. The removal of phosphorus has so long been accomplished along certain well-defined lines, that when the electric furnace made its appearance metallurgists adhered to the same old reactions used in the older processes and failed to appreciate and take advantage of the new forces at their disposal. One object of the present paper is to set forth more clearly the metallurgical reactions by which phosphorus can be removed from iron, and to show the necessity of controlling the conditions, and particularly the temperature, by means other than combustion in the furnace-chamber. Invariably, the commercial removal of phosphorus has been accomplished by oxidation. The reactions involved in oxidation of phosphorus in general consist, first, of the formation of P2O5 and second, the combination of this oxide with lime, forming calcium phosphate, which latter is held in a slag high in iron oxide. In the present-used processes, the phosphorus is never removed without the assistance or presence of considerable quantities of iron oxide. The oxygen for removal of phosphorus in the basic open-hearth process comes largely through the medium of iron oxide and furnace-gases, but not

Jan 1, 1913

By R. W. Raymond

I have the pleasure of exhibiting samples of the rock in which the South African diamonds are said to occur, for which I am indebted to Mr. Franz Groeger, of Vienna, formerly an assistant of the Royal Imperial Geological Institution, whose account of the general geology of Southern Africa was contained in a recent number of the proceedings of that Institution. The rock is apparently a sort. of tufa, evidently of volcanic origin. Mr. Groeger assured me that it could be seen in situ, bounded by uplifted stratified rocks; and that diamonds had been mined from it, by means of shafts, some distance below the surface. Groeger calls it " greenstone-tufa," and says of it, in the proceedings of the Geological Institution, " it breaks through the younger members of Group III [lower Trias and Jura], .... and crops out in oval masses, filling fissures.....The occurrence of this tufa is not locally limited, but has been traced and proved already over a large territory." Dr. Hunt remarked that the material looked like the trass of the Rhine region. He thought it a new occurrence for diamonds. He believed diamonds to belong to ancient crystalline rocks, although these materials might be brought up by volcanic agency, and the diamonds remain unaltered. In the volcanic rooks of Auvergne, crystals of sapphire, zircon, and spinel are found; and yet no one supposes that these minerals have been generated by volcanic agency. He had had a conversation with Bertrand de Lorn on this subject, who agreed with him that these minerals, being hard and resistant,

By J. Jolly

THIS short note on the probable character of the organic sulfur compounds in coal can do no more than indicate lines of research. We have no new experimental work to describe, nothing comparable in value with the careful studies of American coals by Powell and Parr1 and Yancey and Frazer.2 A study of the manner in which sulfur compounds exist in British coals (and their behavior on heat treatment) is rendered increasingly necessary by the fact that the British reserves of good coking coals of reasonably low sulfur content are fast being depleted. We believe that it is essentially by a study of the modes of formation, occurrence, and decomposition of the various types of inorganic and organic sulfur compounds in coal that it will be possible, with hope of success, to attack the problem of purifying coals, otherwise eminently suitable for coking, from these objectionable ingredients. Sulfur, so far as is at present known, does not normally occur in the free state in the coal conglomerate, but is chiefly distributed, irregularly, in three forms: 1. As primary constituents of the coal conglomerate, organic in nature and probably associated with those molecular complexes that have resulted from the degradation of the proteins of the plant tissues responsible for the formation of the coal mass. These constituents can be classed as "organic sulfur." 2. As metallic sulfides, e.g., iron pyrites. 3. As metallic sulfates, e.g., calcium sulfate and ferrous sulfate. (The occurrence of these compounds varies with the occurrence and degree of degradation of class 2.)

Jan 3, 1925

By Charles R. Keyes

During the past decade the genesis of the lead- and zincdeposits of the Mississippi valley has received special attention from many distinguished observers. But their united egorts, instead of settling all disputed questions, have, in many respects, involl-ed the general problem in greater uncertainty than would be thought possible under the circumstances. In place of the harmony of opinion that might be expected, there is unexpected disagreement, largely due to the fact that, instead of giving attention to a possible multiplicity of ore-producing conditions among the different deposits, the attempt has been made to bring all deposits under a single genetic head. To a new observer of the lead- and zinc-deposits of the Mississippi valley, it appears at the outset that all the deposits cannot possibly have had the same genesis. In fact, different modes of origin have been often asserted for the ore-bodies, but the difficulty has been that each writer has referred them either all to one category or all to another, and no intermediate ground has been considered possible. Such a position now appears to be clearly untenable. The opinion that, in the deposits of the region under consideration, the ore-materials represent original depositions, made at the time the rocks themselves were formed, is no longer held by any authority, and therefore need not be considered here. Of late years, a number of writers have attempted to account for the presence of the lead- and zinc-ores on the hypothesis that the metallic materials arose in heated solutions from the

Jan 1, 1902

By Charles M. Cooley

THE continual improvements in. the two extremes of the drilling, unit, the drill and bit, have prompted critical examination of the drill steel, the weak link of this drilling unit. Obviously, little is to be gained from the betterment of the drill and bit if the drill steel which transmits the force needed for drilling from the machine to the bit cannot stand long hard service. The technology of the bit has advanced from the integral type to steel detachables, thence to the tungsten carbide insert. The carbide insert is the most significant advance in the bit, bringing it to the level of a machine tool with its performance records under constant surveillance. Long steel changes have become advantageous because the carbide bit will drill greater footages without replacement than did the steel bit: The development of the tungsten carbide insert opened new fields of endeavor in drilling with percussion drills here- to fore known, but limited by the steel bit. After the introduction of the tungsten carbide bit, drill manufacturers began promotion of long feed shells, lighter drifters and stopers, and easily handled auxiliary equipment. Ultimately this promotion of better equipment was intended to increase the bit-against-rock time of the drill shift. Advantages of the uninterrupted drilling period of a long steel change and faster setup time of lighter drill machines are lost when the shank fails in the machine, rod failure requires continual changing, or the bit breaks off in the hole. The quest for reduced

Jan 1, 1952

By Stanley D. Michaelson, Ben. H. Slothower

The depletion of most high-grade ore reserves coupled with growing demands for metals and fuels has made it necessary to bring into production increasingly lower grade deposits. Improvements in technology have made lower grade ores economically recoverable in spite of major increases in labor and material costs and the initial investments required to open new mines and build their metallurgical and service plants. To remain competitive, managements of mining companies must keep abreast of and exploit these often complex technical developments. The proper application of these improvements in technology requires extensive and detailed study. In addition, managements of mining and other industries are becoming more deeply involved in public affairs and the myriad of other nontechnical problems common to all industries. These involvements, plus the demands of evaluating technological developments as well as the necessary work related to the routine administration of operations, have required mining managements to delegate additional study and review functions to staff services. To help overcome the problems involved in adopting the best technologies, managements have generally expanded their engineering and research staff services. Integrated, base-metal-producing companies, having open pits, concentrators, smelters, and refineries, are generally more research and engineering oriented than are most smaller mining companies and quarries. However, mining methods for even the simplest open pits and quarries are improving rapidly, and installations of these improvements are essential to combat increasing costs. Because of this, the managements of smaller operations may also require enhanced engineering staff services to realize the potential benefits.

Jan 1, 1968

By R. W. Raymond

I HAVE the pleasure of exhibiting samples of the rock in which the South African diamonds are said to occur, for which I am in debted to Mr. Franz Groeger, of Vienna, formerly an assistant of the Royal Imperial Geological Institution, whose account of the general geology of Southern Africa was contained in a recent number of the proceedings of that Institution. The rock is apparently a sort of tufa, evidently of volcanic origin. Mr. Groeger assured me that it could be seen in situ, bounded by uplifted stratified rocks; and that diamonds had been mined from it, by means of shafts, some distance below the surface. Groeger calls it "greenstone-tufa," and says of it, in the proceedings of the Geological Institution, " it breaks through the younger members of Group III [lower Trias and Jura], . . .. and crops out in oval masses, filling fissures . . ..The occurrence of this tufa is not locally limited, but has been traced and proved already over a large territory." DR. HUNT remarked that the material looked like the trass of the Rhine region. He thought it a new occurrence for diamonds. He believed diamonds to belong to ancient crystalline rocks, although these materials might be brought tip by volcanic agency, and the diamonds remain unaltered. In the volcanic rocks of Auvergne, crystals of sapphire, zircon, and spinel are found; and yet no one supposes that these minerals have been generated by volcanic agency. He had had a conversation with Bertrand de Lom on this subject, who agreed with him that these minerals, being hard and resistant,

Jan 1, 1874

A. MALINOVSZKY,* Belleville, Ill. (written discussion?).-I have been very much interested in Mr. Dolman's paper. We all realize, I think, that this question of developing our home industries and support-ing the new industries which have developed during the great war is very important at present. Mr. Dolman has well shown the quantity and quality of the raw magnesite in the United States, and the commercial and industrial possibility of our home magnesite and I believe, with him, that our home industries should receive adequate protection. There are two reasons, however, for believing that this may be difficult. One reason is that much American capital is invested in the Austro-Hungarian magnesite industry. The raw magnesite can be quarried and prepared for the market in Austria with much cheaper labor expense than in the United States; large deposits which are very easy to quarry and good transportation facilities also contribute to the cheapness of production. The second reason is the old saying that the magnesite found in the United States is not of the same quality as the Austro-Hungarian mag-nesite; this I doubt. Even if the magnesite found here does not in a raw state equal the Austro-Hungarian, it can be synthetized so that the finished article will have the same properties as the Austro-Hun-garian finished magnesite refractory possesses. Thaw magnesite from Greece is not the same as the. Austro-Hungarian, but it has linen demon-strated that a good refractory can be made from the Greek product.

Jan 10, 1919

By Raimo Matikainen

Sublevel stoping has been used in Finland since the 1930's and today more than ten under- ground mines have adopted it as their main stoping method (Fig. I). Approximately 80% of the total underground tonnage is mined by sub- level stoping (Table 1) The first mines to introduce the sublevel stoping method in Finland were limestone mines. The development of sublevel stoping was very slow up to the mid 1960's when the switch to trackless mining started and the increase of mechanization lead to higher capacity and productivity. The method itself has been almost the same since the 1950's when long hole drilling was introduced. According to a future prognosis sublevel caving will give way to sub- level stoping; on the other hand, open pit mining will at the same time grow rapidly with some new mineral orebodies, which will he brought into production. Most Finnish orebodies are, however, only marginal ores and they could not support mining with more expensive methods than open pit mining or sublevel stoping. The future of sublevel stoping seems relatively bright. GEOLOGICAL AND ROCK MECHANICAL BACKGROUND The rock mechanical conditions in Finland are in general relatively good and the rocks firm. The compressive strength is normally 40 - 150 Mpa and modulus of elasticity 40 - 200 Gpa. Low values are common in altered and fractured rocks and near the ore contact Rock stress measurements have been carried out already for 20 years for mine design and monitoring purposes. The results of these measurements show that relatively high horizontal stresses seem to be common (Fig. 2).

Jan 1, 1981

By Theo W. Robinson

The evolution of the modern blast-furnace from the embryonic stages of comparatively few years ago, has been the work of wide praetiee and experiment. That much is still to be desired, the experience of every furnace-manager mill testify. Mr. Walsh's paper on "The Irregularities of the Blast-Furnace Process, and a Practical Way to Avoid Them" (Trans., xv., 419), proposes a new solution of the problem of interior lines, and one that has given rise to not a little speculation and controversy. The investigation described in this paper was undertaken to test experimentally the theory of Mr. Walsh as to maximum reducing capacity. Briefly explained, Mr. Walsh's views (outside of his claim for increased efficiency due to having the bosh wholly within the meltingzone) are, that a furnace of contracted stack and throat, on his lines. may equal in product one of considerably greater cubical capacity. The explanation offered for the theoretical greater capacity per cubic foot of his furnace is, that the increased tension of gases caused by passing through the small area mill promote transpiration, thus facilitating reduction and permitting more rapid driving. This alleged relation will appear from a hypothetical case in which a furnace, A, constructed on Mr. Walsh's lines, has but 1/x of the cubical contents of a furnace, B, of modern type; the two being equal in height. In order that A shall have the same capacity as B, both working normally with the same mixture and burden, and

Jan 1, 1889

By AIME AIME

YALE UNIVERSITY looked like a top-notch school to "Bert" Phillips in spite of the belief that the college in the home town sometimes looks less attractive than a more distant campus. So Bert, a native of New Haven, earned his B.S., M.S., and Ph.D. degrees from Yale. Immediately after Yale days lie served as metallurgist of the Scovill Manufacturing Co., Waterbury, and then went to the Central Research Laboratories of the American Smelting and Refining Co. at Maurer, N. J., where since 1931 he has been superintendent of research. Bert has contributed to metallurgical literature many reports of studies on the constitution and the physical, metallurgy of copper and copper alloys as well as papers on general nonferrous physical metallurgy.

Jan 1, 1938

By R. J. Blackwell, J. R. Rayne, J. R. Henderson, W. M. Terry, D. C. Lindley

This paper presents the results of a laboratory investigation of the efficiency of water-solvent mixtures in recovery of oil. These mixtures may have the high displacement efficiencies characteristic of solvent floods and the high sweep efficiencies characteristic of water floods. Thus, the water-solvent process may increase the number of reservoirs in which a miscible-type displacement can be used profitably. The experiments on the use of water-solvent mixtures for recovery of oil were conducted to find the general applicability of the process. These studies demonstrated that, in flowing through sands, water and solvent segregated into a solvent layer on the top and a water layer on the bottom rather than flowing through the sands as a uniform mixture. Calculations based on the simultaneous flow of the water and solvent in layers were used to predict the effective mobility of the mixtures and the optimum operation of the process in steeply dipping, homogeneous reservoirs. As most reservoirs are not suited for the operation of the process under ideal conditions, experimental studies were conducted with sand-packed models scaled to represent more realistic reservoirs. These studies included the effects on recovery of oil of rate of injection, viscosity of oil, variations of permeablity within a formation and variations in water-solvent ratio. For the range of con-ditions studied, higher recoveries of oil were obtained with water-solvent mixtures than with water or practical volumes of solvent alone. INTRODUCTION A group of intriguing—because of their great possibilities—new oil recovery methods at the disposal of the petroleum engineer are the miscible displacement processes. These processes (high-pressure gas drive, en-riched-gas drive and LPG bank driven by methane) displace all of the oil from the portions of the reservoir swept by the injection fluid. The key question confronting the engineer applying one of these techniques to a particular reservoir is, "What fraction of the reservoir can be swept by injection of a practical volume of solvent?"." Intensive laboratory studies have been made during the past several years in seeking answers to the question of the sweep efficiencies which can be expected in solvent floods.' - These studies provided the answer that low-viscosity, low-density solvents channel and by-pass oil in sands with no dip. In horizontal sands, solvent flooding becomes less efficient as the viscosity of the oil increases, the recovery of oil at solvent breakthrough decreases and larger volumes of solvent are required to achieve a given recovery. More efficient displacement of oil by solvent is observed under certain conditions in sands with dip.".' If the permeability and dip of the sand are sufficiently high, gravity segregation of low-density solvent injected updip can prevent channeling. At rates of depletion below a critical rate,"." no channeling occurs. Unfortunately, in many reservoirs, the critical rate is so low that production of oil at rates below this rate is not economically attractive. And at rates over four times the critical rate, channeling is almost as severe in sands with dip as in horizontal sands. These findings pointed out that, for solvent floods to be generally applicable in recovering oil from all types of reservoirs, new methods of improving their sweep efficiencies are needed. Simultaneous injection of water with the miscible fluid was suggested by Caudle and Dyes7 as a method for improving sweep efficiencies. They theorize that water flowing with the solvent would decrease the effective mobility of the solvent and cause it to contact more oil sand. If, indeed, the water and solvent flowed as a uniform mixture, the process should have the advantages of the high displacement efficiencies characteristic of miscible floods and the high sweep efficiencies of water floods. Thus, the method (at least in theory) would greatly increase the number of reservoirs in which miscible-type displacements would be feasible. A research program was conducted to probe the technical feasibility of the water-solvent process. It

By Frederic L. Kadey

Perlite, as a volcanic glass, has been recognized since the Third Century, B.C. (Langford, 1978). The precise details of discovery often become lost in antiquity, and the variations among the stories pertaining to the more recent discovery of perlite as a material of commerce are no exception. Credit in the United States is given to a dentist who, while experimenting with tooth enamels about 1941, discovered that perlite-the rock-intumesced when subjected to heat. At about the same time it is reported that the chief geologist of Silver and Barytes Ores Mining Co. attempted to put out a picnic bonfire on the shores of Milos Island, Greece by throwing beach sand on it. The ensuing pyrotechnic display immediately conjured up in that man's mind the possibility of a new use for the volcanic rock that constituted most of the island. Very little was done with this discovery either here or abroad until after World War II. Today the name perlite is applied to both the hydrated volcanic glass, generally of rhyolitic composition, and to the lightweight aggregate that is produced from the expansion of the glass after it has been crushed and sized. Petrologically, it is defined as a glassy rhyolite that has a pearly luster and concentric, onionskin parting. Occurrences of perlite are restricted to several Tertiary to Quaternary age rhyolitic belts that trend in a generally north-south direction around the world. Commercially suitable deposits generally occur as domes of several hundred feet in height, although glassy zones in welded ash-flow tuffs and others associated with dikes and sills also have been reported. Mining is by ripping and blasting from open pits. Because of weight considerations, perlite usually is shipped to the local market area for subsequent expanding. In the United States, New Mexico leads in production with Arizona, California, Nevada, Idaho, and Colorado following in approximately that order. The principal use for expanded perlite is as a lightweight insulating aggregate in cryogenics, in plaster, concrete, and in loose fill insulation. Expanded perlite is also used in horticultural applications, and after subsequent milling and classification, as a filter aid. The United States is the world's largest producer and consumer of perlite. Table 1 shows the world production of perlite and Table 2 shows the perlite mined, processed, expanded, and sold or used by producers in the United States. Geology Composition and Morphology Any discussion of perlite must take into consideration its dual nomenclature, for it is known by the same name as both the naturally occurring rock and, after processing and expansion, as the lightweight aggregate of commercial significance. In its naturally occurring form, perlite is a rhyolitic glass that contains from 2 to 5% combined water. While perlite also can occur as andesitic or dacitic glass, these latter types are of negligible commercial significance. Table 3 lists the chemical composition of a few typical perlites (Anderson, et al., 1956; Langford, 1979). What sets perlite of commercial significance apart from other volcanic glasses is the fact that under the proper conditions of preparation-crushing and sizing-it will, when rapidly introduced into a flame of sufficient temperature, expand or "pop." All of the elements of composition contribute to the expansibility of the rock. The role of the combined water, however, is the most significant because it is believed not only to produce a fluxing effect in the softening of the highly siliceous glass prior to expansion, but it is also responsible for the explosive force of expansion through volatilization during heating. The current theory of the origin of the water in perlite is now less con-

Jan 1, 1983

By Peter H. Fletcher

THE ECONOMIC THEORY It will assist in the understanding of the Resource Rent Tax ("RRT") proposals in Australia if the economic theory behind the tax is briefly explained. The idea goes back to the concept of rent put forward by the nineteenth century economist David Ricardo. His analysis was broadly as follows: A tenant who farms land which is just on the margin of economic viability cannot afford to pay his landlord any rent, because the value of the crop produced by such marginal land is equal to the cost of producing the crop, plus the cost of keeping the tenant alive. There is nothing left out of which to pay rent to landlord. A tenant who farms good land can afford to pay his landlord rent -- but the maximum amount of rent that he can be asked to pay is the excess of the value of the crop produced by the good land over the cost of producing the crop and of keeping the tenant alive. Adapting this theory to the taxation of mining projects, modern economists who favour this system of taxation say that a profitable mining (or resource) project produces rent in the Ricardian sense. The amount of the rent is the excess of the profits by the project over the amount of profit which is required to attract the taxpayer to invest in the project in the first place. This explains why the tax is called "Resource Rent Tax". PAPUA NEW GUINEA PRECEDENT Although Papua New Guinea ("PNG") is now independent of Australia, there are still close links between the two countries, and strong similarities between their respective tax regimes. PNG introduced an Additional Profits Tax ("APT") in 1978. In many respects, Australia's RRT proposals follow the precedent set by PNG1s APT. However, in practical terms, not a great deal can be learned at this stage from PNG's experiences since, according to the writer's understanding, no PNG mining project has yet paid any APT. The Bougainville mine is not liable to APT, being subject to tax under its own separate Act, which contains a different formula. Outline of PNG Additional Profits Tax. PNG has two versions of Additional Profits Tax ("APT) - one applying to general mining, the other to petroleum mining. The two versions are very similar. The general mining version is described below. The tax applies on a licence by licence basis. This means that losses on Licence A cannot be offset against profits on Licence B. Expenditure relating to two or more licences, is apportioned "in such manner as the Chief Controller thinks reasonable". Tax is levied on the "accumulated value of net cash receipts" at the rate of (70 - n)% where n=the rate of income tax. The accumulated value of net cash receipts ("av") is calculated as follows: Calculations commence from the first year in which substantial expenditure was incurred on the construction of facilities for the carrying out of mining operations on the licence. For that year the av consists of the total allowable expenditure to date on that lease. For the second year, the av is the av at the end of year one indexed in accordance with the statutory formula set out below, plus the total allowable expenditure in year 2. For year 3, the av is the av at the end of year 2 adjusted by the index factors, plus the total allowable expenditure in year 3. This process is repeated year after year. When the licence starts to earn revenue, the revenue is deducted from total allowable expenditure for that year. If revenue exceeds total allowable

Jan 1, 1985

Metal Statistics, Published by the American Metal Market, 111 John St , New York, N. Y. While it is not policy to list in this directory commercial publishers of literature on mining and geology, it is felt that reference to a few standard works of wide distribution and general use should be included; particularly when those works are statistical or of a specific informatory nature Metal Statistics is a book issued annually by these publishers. It contains a general assortment of statistical information concerning the ferrous and the nonferrous metals-price quotations of the metals, tables of production, and so on It is a widely used reference The 25th Annual Edition was issued in March, 1932. The price is $2

Jan 1, 1933