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By Spruille Braden

My attendance at this seventy-fifth Anniversary banquet of the A I M E is for me a homecoming, It means renewing associations with old friends, breathing again 'the invigorating mining atmosphere in which I was born and reared, and being among those who remember with affection and esteem the man from whom I inherited a name so intimately linked to-the mining profession Tonight, like a prodigal son strayed from mining into the far countries of diplomacy, I return, to eat and be merry over the fatted calf on this pleasurable occasion , While there is no riotous living in modern diplomacy, you are no doubt convinced that neither did I suffer a mighty famine in those far lands When I entered the Foreign Service, a few mining friends, viewing diplomats as sartorial perfectionists, or "striped pantsers" preoccupied with the art of cookie pushing, no doubt thought me a lost soul Conversely, some of my new colleagues at first looked upon me captiously and later as a reformed character, because they believed all miners to be rough customers, attired in muddy boots and given to direct action and equally direct or even explosive speech In point of fact, these two professions have much in common I do not have in mind the parallel cynicisms that "a miner is a liar with a hole in the ground" and "a diplomat a man sent abroad to lie for his country " I do

Jan 1, 1947

By Olaf Hondrum

CHURN drilling equipment at Bagdad consists of two Bucyrus Erie 27-T model drills and one 22-T drill with gasoline engines. The drilling tools weigh approximately 1600 lb. The holes are drilled with 7-in. bits which are heated in an oil burning furnace and sharpened in an electrically powered bit sharpener. A service truck brings the bits to the drills and takes the dull bits back to the shop. The bits weigh around 250 lb. when new and are handled by drill crews without any mechanical handling device. When the management decided to start open- pit operations in 1945 the ruggedness of the terrain was one factor that led to the purchase of the small 22-T model drill. The orebody lies on both sides of Copper Creek Canyon. The sides of the canyon are steep and are cut by numerous narrow branch gullies. The drill had to travel over roads that were narrow and steep. It proved adequate for drilling the capping formation and is still in use.

Jan 1, 1950

By Klaus M. Zeitler

INTRODUCTION One cannot discuss the subject of "Raising Capital in the 1990s" without having a crystal ball and a reliable fortune teller. This discusses "Raising Capital for the 1990sW, which is what Metal1 Mining Corporation did in 1987. We raised (3166 million in an IPO (initial public offering) that was originally planned for only some (375 million. Why did we raise this money? How did we do it, and why was this IPO so successful? The answer to the first question requires a description of the promoter and principal shareholder of Metal1 Mining Corporation, Metallgesellschaft AG. This West Germany company was founded over 100 years ago in Frankfurt as a trading house for non-ferrous metals. It has developed into one of the world's leading firms in the non-ferrous metals industry. The company's worldwide activities in all areas of that business include mining, smelting and refining, the trading of ore, base and precious metals, the production of semi-fabricated and finished metal products, and the provision of engineering, construction and transportation services. Metallgesellschaft AG has also diversified into many other areas, the most significant of which are manufacturing, the production of chemicals, the development and application of technical and chemical processes, the planning and construction of industrial plants, and activities associated with finance, insurance, shipping and freight forwarding, and the provision of barter and countertrade services. The company maintains a network of more than 100 offices around the world; it employs some 25,000 people in its worldwide activities. [Selected financial data, as of September 30, 1987: (MetaUgesellschafl AG) Working Capital DM 8%.6 million CDNS 672.8 million Long Term Debt DM 568.0 million CDNS 426.2 million Sales DM 14.9 billion CDNS 11.2 billion Net Income DM 87.7 million CDN$ 65.8 million Market Capitalization at April 27, 1987: (Metallgesellschafi AG) Outstanding Shares ~,6oo,o0o DM 1,875 million CDNS 1,407 million] For the fiscal year ended September 30, 1987, Metallgesellschaft AG had, on a consolidated basis, net sales of DM13.3 billion, net income of DM100 million and total assets of about DM7.0 billion. Metallgesellschaft AG established the American Metal Company, a predecessor of AMAX Inc. one of the largest ventures undertaken by Metallgesellschaft AG then was the acquisition, through the American Metal Company, of a majority share in the Mexican Penoles mine, a large lead and silver deposit. METALLGESELLSCHAFT AG Figure 1 depicts an overview of Metallgesellschaft AG before and at the time the initial public offering of Metall Mining Corporation's shares took place. It shows that mining was far from the centre of Metallgesellschaft's activities. Therefore, it could not expect to receive an extraordinary amount of board attention. Thus, mining investments not only had to compare well with other mining opportunities, but were in fierce competition with projects from other divisions. In addition, mining was sub-divided into two separate departments -- domestic and international. These two departments had different management styles and diverging interests which resulted in a minimum co-operation between them. The domestic mining department was primarily interested in the survival of the local mines. These mines were characterized by rising operating costs and declining ore grades. It took a special commitment and continued ingenuity to develop and adjust to local conditions, and modern mining and processing technology, in order to remain competitive, or at least survive within the international mining industry. Local management

Jan 1, 1990

W. 0. HOTCHKISS, * Madison, Wis.-It was fortunate, in a way, that this subject of income taxation came up during the war when the government could appeal, on the basis of patriotism, to men of large, business experience to undertake the work of formulating this matter and practically donate their services. At any other time the government would have been unable to secure the necessary number of men of like ability. There is one thing that must not be forgotten. In all cases, except the very largest and most important, the application of this income tax law to a mine is going to be made by clerks whose salaries are fixed by a Congress that appropriated a half billion of dollars for a war purpose and provided that $4000 should be the highest salary paid in the adminis-tration of that great sum. The Congress of the United States unfor-tunately seems almost entirely unaware of the fact that men of ability and experience are worth money and must be paid adequately if proper public service is to be secured. While the formulation of the broad plans for administering the law have been in the hands of. men of unusual ability, we have the future to guard, and, if possible, the mining industry should see to it that the Internal Revenue Department is permitted by Congress to pay salaries that will enable it to secure men of the ability and experience necessary to insure proper consideration of the industry. Another fact to which I would call attention is the difference between the business and the economic, or economists', points of view as to what a mine is. The economists have properly, from their point of view, classed a mine as a wasting asset, but the average metal mine is not a wasting asset if it is a real mine. The economists are correct in a broad sense in that every ton of ore taken out diminishes the orebody by that amount. When it comes to the consideration of an individual mine from the business standpoint, the future of that mine rests on unfore-seeable events-the discovery of new orebodies or the development of old bodies beyond the point of probable expectations. Every going mine must develop new ore each year to replace that extracted, and, .during all but the last one or two years of its activity, actually does so. Instead of being a "wasting asset" such a mine, from the practical stand-point which must control valuation, is an "increasing asset." From

Jan 12, 1919

By Tell Ertl

An annual invitational address by an outstanding man in mining, geology, or geophysics who has contributed significantly to the progress of technology in these fields. IN 1954, the first year the award was conferred, Fred Searles, Jr., remarked, "The earlier years are the easiest." In this, the second year, it was easy to choose the outstanding mining engineer. Our conferee this year has been destined to mine. He comes from pioneer stock, and though a son of the American Revolution he is most proud that all four of his grandparents came to the Jordan River Valley of Utah the "first summer," which all Utahns will recognize as 1847. At the time of discovery of high-grade ore in Bingham, his grandfather, Archibald Gardner, had a crew of men getting out saw timber in the area. The first claim staked in Bingham Canyon was named the Jordan, and Bishop Gardner was the colocator of the claim as well as the man to record it. E. D. Gardner was born in West Jordan, Utah, in view of Little Cottonwood Canyon, the site of the Emma Mine. Park City in the Wasatch Mountains a few dozen miles to the east, and Tintic, not much further to the south, were developing their vast ore-bodies throughout his youth. As a boy he was near the present Midvale metallurgical area and could see the Lark and Bingham Canyon mine dumps and imagine the mining activities at Tooele, Ophir, and Mercur just over the nearby Oquirrh Range. He was 11 years old when the first car of copper ore was shipped from Bingham Canyon. It was not surprising that he attended the University of Utah and graduated with an engineer of mines degree. Five years with the Utah Apex in Bingham Canyon as chief engineer and assistant superintendent completed his training for the 44 years of unselfish and lightly rewarded service he was to give the mining industry as a Government engineer. All of us in mining are familiar with the great work he carried on and directed during the genera- tion he supervised the Southwest Experimental Station at Tucson. He has written scores of papers and books. His observations and experiments on drilling and blasting have led to the important improvements in this field during the past quarter century. Whereas those of us who consider ourselves widely informed about underground metal mining methods make hasty trips through a half dozen or dozen mines a year, our conferee has visited them all—not only the metal mines, but also coal and hundreds of nonmetallic mines, in the United States, Canada, Latin America, and overseas. His keen observations and analytical mind have resulted in an encyclopedic knowledge of mining and mines. His improvements in mining technology have been steady and predictable. His elucidation of mining problems to the many young engineers that have come under his guidance have made them grow strong and useful to his industry. When he chooses to stop, his influence will continue to expand and prosper because of the inspiration and dedication he instilled in so many of us. The profits from his ideas have been distributed throughout the mining industry. He has remained a technical man who felt that he could serve the mining industry best as a Government engineer. But he is the staunchest advocate of the belief that the public should gain from his work through private industry. This is not the first recognition E. D. Gardner has received. The Department of the Interior awarded him the coveted Medal for Distinguished Service in October 1949, and he received the Engineering & Mining Journal's Salute in March 1951. His friends who are presenting him the Daniel C. Jackling Award today know this great mining engineer simply as "Ed" Gardner.

Jan 1, 1956

By AIME

WELL known as an outstanding practical metallurgist, the Chairman of the Institute of Metals Division also possesses a rare combination of research and administrative abilities. Louis W. Kempf was born in Muskegon, Mich., on March 22, 1898. Following his graduation from high school, he obtained considerable experience in the automobile industry while employed by Continental Motors, the Studebaker Corp., and Dodge Brothers. He enlisted in the U. S. Army Signal Corps in 1917, and served overseas with an aviation unit. In 1919, Mr. Kempf entered the University of Michigan and earned both B.S. and M.S. degrees. While there he was elected to Tau Beta Pi, Phi Lambda Upsilon, Alpha Chi Sigma, and Gamma Alpha. In 1924, the Aluminum Co. of America secured his services as a research metallurgist. With a steady job he married Elizabeth Skelley in Cleveland in 1926. They have one son now seventeen. After six years Mr. Kempf was made manager of the Cleveland research division of the Aluminum Research Laboratories which position he held until last year. In 1945 he was promoted to assistant director of the Laboratories. He will direct research involving process metallurgy in Cleveland and New Kensington.

Jan 1, 1946

By J. Lemish

Considerable research has been conducted in Iowa in recent years on carbonate aggregate reactions in concrete. Groups outside the state have become active in the past few years after recognizing that certain carbonate aggregates are reactive in concrete. The paper reviews the nature and extent of the problem and a summary is given of research by the author and his associates. In recent years considerable research has been conducted in Iowa on carbonate aggregate reactions in concrete. The research is part of a general study on the behavior of carbonate rocks as concrete aggregates sponsored by the Iowa State Highway Commission. Research on carbonate aggregates has not been extensive in the past. Laughlin1 published one of the first papers on carbonate aggregates in 1928 and was followed by others, notably H. S. sweet,' B. Mather et al.,3 and K. Mather4 who emphasized the petrographic and physical aspects of carbonate aggregates. The recognition that certain carbonate aggregates are reactive in concrete has led to increased participation in research in the past few years by groups outside of Iowa. Significant contributions have been made by Swenson and Gillot,5 Hadley,6 and Chaiken and Halstead7 in work which emphasizes the expansion of carbonate rocks in alkaline environments and the reaction of carbonate minerals or dedolomitization with alkalies. It is the purpose of this paper to review briefly the nature and extent of the problem and present a summary of the research by the author and his associates. EXTENT AND NATURE OF THE PROBLEM The problem is the deleterious behavior of certain carbonate aggregates in concrete. It was first recognized in Iowa over 20 years ago when poor service records of certain highways were correlated with aggregates produced from the Glory and LeGrand quarries. Deleterious behavior of carbonate aggregates have been reported in Canada and, more recently, in New York and Virginia. As more knowledge is gained concerning the problem, distress in concrete related to carbonate aggregates may be recognized over a widespread area. The problem may potentially exist in the Midwest, the Northeast, and other parts of the country underlain by thick sections of carbonate rocks readily available for utilization as aggregates. The nature of distress in Iowa highways is a general weakening and deterioration of concrete characterized by progressive cracking and spalling away from joints and edges (Fig. 1). The distress generally occurs after 15 years of service and becomes progressively worse. Specimens of such concrete lack the toughness of sound concrete and break easily under the hammer in the manner of a soft brick. The matrix is generally highly carbonated and dark borders, or reaction shells or rims outline the argillaceous carbonate aggregate fragments (Fig. 2). Cracks observed in cores cut across the aggregates and concrete matrix. Although localized volume change (expansion) is associated with spalling, there is no definite field evidence in Iowa that excessive growth of concrete slabs has occurred. The experience with carbonate aggregates in Iowa indicates that the concrete deterioration is not the same as that induced by the alkali-aggregate reaction associated with siliceous aggregates. The principal difference is that in Iowa the distressed concrete is weakened throughout the slab. In concrete affected by the alkali aggregate reaction, the

Jan 1, 1961

By F. H. Wilson, E. W. Palmer

The solid solubility of iron in 2 to 10 pct cupro-nickels increases with temperature and nickel content. Property changes accompanying various heat treatments indicate typical precipitation hardening behavior. Iron content also affects softening temperature and sub-scale formation. These factors, as well as impingement corrosion resistance, influence the optimum iron content of commercial alloys. FOR many years Cu-Ni alloys have been used extensively in the form of tubes, pipes, and plates for the construction of salt-water lines and surface condensers on shipboard and in tidewater power stations. The 30 pct Ni alloy has been considered more resistant to rapidly flowing sea water than alloys of lower nickel content, and has been standard on ships of the U. S. Navy. Some ten years ago, the still better corrosion resistance obtained by modifying the 30 pct Ni alloy with approximately 0.5 pct Fe was recognized, and the iron-bearing alloy rapidly superseded the plain alloy as the standard material for severe service. In 1945, Tracy and Hungerford1 published a study of the effect of iron on the corrosion of various cupro-nickels in sea-salt solutions, and their data indicated that the 10 pct Ni alloy containing about 0.75 pct Fe was equivalent to the 30 pct Ni alloy containing 0.5 pct Fe. This was confirmed by LaQue in discussion of the above paper, and by results in an experimental condenser set up at the Kure Beach marine test station of The International Nickel Co., reported by Freeman and Tracy.' The 10 pct Ni iron-bearing alloy is now being very widely used in applications where the 30 pct Ni iron-bearing alloy was formerly considered standard. While this "substitution" has undoubtedly been stimulated by the present extreme shortage of nickel, it must be emphasized that it involves no loss of service performance, and would have occurred anyway in the course of time, for economic reasons. In view of the increasing use of the 10 pct alloy, it seems desirable to make generally available the results of several investigations of Cu-Ni-Fe alloys carried out in the Metallurgical Research Laboratory of The American Brass Co. in recent years. The present paper, deals with the constitution of these alloys in the copper-rich corner of the system, and with the variations in hardness and tensile properties resulting from the heat treatment of alloys containing various amounts of iron. Most of this work is concerned with alloys containing 10 pct Ni. With over about 0.75 pct fe, the 10 pct Ni alloy is suscep- Alloys Several series of cupro-nickel alloys containing iron were used in these investigations. Most of them were prepared in the laboratory, but two samples of commercially fabricated alloys were included. Series A—Nominally 2 and 5 pct Ni, each with 0 to 1.5 pct Fe. Series B—Nominally 10 pct Ni with 0.1 to 0.4 pct Fe. Series C—Nominally 1.0 pct Ni with 0 to 2 pct Fe. Series D—Nominally 10 pct Ni with 3 to 5 pct Fe. Series E—Nominally 10 pct Ni with 1 and 1.5 pct Fe.

Jan 1, 1953

By Hobart M. Kraner, E. B. Snyder

THIS paper shows that volume stability, low porosity and decreased pyroplasticity are desirable for blast-furnace linings, particularly for the hearth. It shows further that a hot load test is a valuable means of testing the fusion or softening behavior of a refractory at operating temperatures. The effect of carbon monoxide on commercial blast-furnace refractories in their as-received condition and after refiring is reported, showing that many commercial blast-furnace refractories disintegrate badly but that refiring decreases the effect and certain special refractories are now available which are almost free of the tendency. FACTORS AFFECTING CHOICE OF REFRACTORIES If one were to depend entirely upon experience or trial in the selection of clay refractories, the solution of a problem would be a slow process. Furnace campaigns are so long and attended by so many variables that it is difficult to draw fine distinctions within a reasonable period of time in regard to the quality of refractories used. It could be said, of course, that if service results do not yield the proper information for intelligent choice, there is no difference in the quality of brick being considered, but this is not necessarily true. Conventional ceramic tests are designed to give the ceramic engineer information as to the refractoriness and firing temperature, which he in turn interprets in terms of volume stability, ability to withstand load at high temperature (pyroplasticity), permeability, chemical stability and resistance to the action of slag. In most refractory applications several of these factors are involved. In a particular instance, one requirement may be predominant, while in others some other factors may be of primary importance. In this country, clay refractories are generally made from mixtures of plastic and flint fire clays. The process of firing a clay refractory is one of slowly melting the constituents, and during this operation its porosity is gradually reduced. The process is arrested, of course, in its incipient stages and the progress is determined by measuring slight changes in. porosity, volume, bulk gravity, etc., that have taken place. Often the temperatures to which clay refractories are exposed in service are higher than those employed in their firing. However, if the manufacturer were to fire them at such high temperatures the brick would distort. Therefore it would be difficult for the manufacturer to fire all of his clay refractories to temperatures . at which they are to be used, although in many cases it would be desirable from the user's point of view if he would do so. The porosity of clay refractories decreases by firing, to a minimum limit, after which a further increase in the temperature causes expansion in certain clay constituents and bloating in others. -Both may occur in the same refractory containing two such clays.

Jan 1, 1944

By W. A. Ver Wiebe

UNder the impetus of new demands caused by the defense program, the oil and gas industries of Kansas established new records during the year 1941. In all, 2113 wells were drilled, which compares favorably with the record total drilled in 1937. These 2113 tests resulted in 1446 oil wells, 76 gas wells and 592 dry holes. In all three categories there was an increase over the previous year, but unfortunately the most marked increase was in the dry holes. Nearly 80 per cent of the increase must be allocated to the drilling 01 unsuccessful tests. This was partly because of the increasing difficulty of finding new reserve areas and partly because of the erratic character of the production in the Arbuckle dolomite, which is now the main producing zone. Closer analysis of the totals reveals that western Kansas accounted for 1634 tests, of which 1186 were oil wells, 34 were gas wells and 415 were dry holes. The total potential initial daily production uncovered by the successful wells amounted to 1,691,000 bbl. of oil and 508,000,000 cu. ft. of gas. Both figures indicate a considerable decrease when compared with the proceeding year; in 1940 the respective figures were 2,128,000 bbl. and 1,289,000,000 cu. feet. In eastern Kansas a total of 479 wells were drilled. Among these, 260 were oil wells accounting for a daily initial potential production of 45,662 bbl. The new gas wells numbered 42 and added 290,438,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 177 in number, were dry. It is interesting and significant that almost half (791) of the total wells drilled in western Kansas were drilled by the independent operators. Among the large companies the Cities Service Oil Co. drilled 169 wells; the Stanolind Oil and Gas CO., 101; the Skelly Oil Co., 80; the Continental Oil Co., 99, and the Shell Petroleum Co., 63 wells. In eastern Kansas the independent operators drilled 406 out of the total of 479 wells. Among the major oil companies the Cities Service Oil Co. drilled 38; the Phillips Petroleum Co., 13, and the Sinclair-Prairie Oil Co., II wells. The figures on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas approximately one third of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 844 wells in western Kansas, of which 678 were successful in finding either oil or gas. It thus appears that the major companies fared much Getter than the independents. In eastern Kansas the major companies drilled 73 wells of which 63 were successful in finding commercial quantities of oil or gas. No less than 286 wildcat tests were put down in western Kansas and 72 in eastern Kansas, or 358 in all, during 1941. Considerably more than half of these were drilled by independent operators; zoo in western and 66 in eastern Kansas. An exploratory hole % mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, approximately 75 per cent of all wildcat wells were failures; only 25 per cent found oil or gas in western

Jan 1, 1942

By W. A. Ver Wiebe

UNder the impetus of new demands caused by the defense program, the oil and gas industries of Kansas established new records during the year 1941. In all, 2113 wells were drilled, which compares favorably with the record total drilled in 1937. These 2113 tests resulted in 1446 oil wells, 76 gas wells and 592 dry holes. In all three categories there was an increase over the previous year, but unfortunately the most marked increase was in the dry holes. Nearly 80 per cent of the increase must be allocated to the drilling 01 unsuccessful tests. This was partly because of the increasing difficulty of finding new reserve areas and partly because of the erratic character of the production in the Arbuckle dolomite, which is now the main producing zone. Closer analysis of the totals reveals that western Kansas accounted for 1634 tests, of which 1186 were oil wells, 34 were gas wells and 415 were dry holes. The total potential initial daily production uncovered by the successful wells amounted to 1,691,000 bbl. of oil and 508,000,000 cu. ft. of gas. Both figures indicate a considerable decrease when compared with the proceeding year; in 1940 the respective figures were 2,128,000 bbl. and 1,289,000,000 cu. feet. In eastern Kansas a total of 479 wells were drilled. Among these, 260 were oil wells accounting for a daily initial potential production of 45,662 bbl. The new gas wells numbered 42 and added 290,438,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 177 in number, were dry. It is interesting and significant that almost half (791) of the total wells drilled in western Kansas were drilled by the independent operators. Among the large companies the Cities Service Oil Co. drilled 169 wells; the Stanolind Oil and Gas CO., 101; the Skelly Oil Co., 80; the Continental Oil Co., 99, and the Shell Petroleum Co., 63 wells. In eastern Kansas the independent operators drilled 406 out of the total of 479 wells. Among the major oil companies the Cities Service Oil Co. drilled 38; the Phillips Petroleum Co., 13, and the Sinclair-Prairie Oil Co., II wells. The figures on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas approximately one third of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 844 wells in western Kansas, of which 678 were successful in finding either oil or gas. It thus appears that the major companies fared much Getter than the independents. In eastern Kansas the major companies drilled 73 wells of which 63 were successful in finding commercial quantities of oil or gas. No less than 286 wildcat tests were put down in western Kansas and 72 in eastern Kansas, or 358 in all, during 1941. Considerably more than half of these were drilled by independent operators; zoo in western and 66 in eastern Kansas. An exploratory hole % mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, approximately 75 per cent of all wildcat wells were failures; only 25 per cent found oil or gas in western

Jan 1, 1942

INTRODUCTION The meaning of cash flow has already been defined as after-tax earnings available for use by the corporation or business. It is therefore apparent that a significant part of mineral economic evaluation is concerned with correct and accurate computation of taxable income under existing tax laws, and the proper treatment of tax allowances and deductions. The various methods of depreciation, depletion, and amortization are all means whereby the investor can earn back or recover, before taxes are imposed, the investments made for purposes of doing business or for the production of income. Each of these three types of tax deduction are applied to different investment items such as property, equipment, buildings, research, etc. The cost of buildings, equipment, machinery, and transportation equipment are representative of capitalized business costs that must be recovered by depreciation over the life of the asset. The property investment costs of acquiring natural resources such as minerals, oil and gas, and standing timber are examples of investment costs that may be recovered by depletion. Several other capitalized business costs, such as research expenses and trademark expenses, may be recovered by amortization. The term "capitalized" means that the in- vestment cost is not deducted as an operating expense in the year that it is incurred, but is spread out over a period of years through depreciation, depletion, or amortization deductions according to lawful schedules. Of course, any capitalized cost can only be deducted once. The other costs of doing business which are not capitalized, such as labor and operating costs, are said to be "expensed," i.e., they are written off for tax purposes in the year they occur. DEPRECIATION Depreciation, according to US tax law, is a deduction from taxable income permitted as a "reasonable allowance for the exhaustion, wear and tear of property out of its use or employment in a business." The original cost of the property is the usual basis for determining depreciation. Since depreciation write-off is applied over the useful life of the asset, the first step is to determine the estimated useful life or its allowable depreciable life. These two lives may or may not be the same. No average life is applicable to all types of depreciable assets under different conditions or in different types of business. It is the taxpayer's responsibility to determine the useful life of the asset according to his own operating conditions and experience, within the guidelines set by the US Internal Revenue Service (IRS). The Class Life Depreciation Range (ADR) System permits the taxpayer to choose from a range of depreciable lives at 20% below or above the present guideline life. The second step required in calculating depreciation is to determine an estimated salvage value for the asset. The salvage value is an estimate, made at the time of acquisition, of the amount of money which can be realized by the sale of the asset at the end of its useful life. The four depreciation methods most widely used in the US are: (1) the straight-line method, (2) the declining balance method (double declining balance), (3) sum of the years - digits method, and (4) units of production method. Straight-Line Depreciation Method The straight-line depreciation method is the simplest for calculating depreciation. The depreciation for each year is determined by subtracting the estimated salvage value from the first cost of the asset and dividing the result by the years of life. The method gives equal annual deduction over the depreciable life. Salvage value equal to or less than 10% of the first cost may be ignored. [first cost - salvage Straight line = years of life ] Declining Balance Depreciation Method Declining balance depreciation, or double declining balance (DDB) as most frequently applied, is used for accelerating depreciation in the early years of the asset and is the fastest depreciation method allowed by the US Internal Revenue Service. The declining balance

Jan 1, 1980

By Arthur Hockman, Howard W. Jaffe, Howard F. Carl

THE problem of establishing practical techniques for evaluating natural corundum ores arose from the desire to improve the existing purchase specifications for crystal corundum procured by the Federal Government for stockpiling. Such purchase specifications had been developed for a large number of products, including minerals and ores considered to be critical and strategic because of the country's dependence on foreign sources of supply. It will be apparent to anyone considering the subject of purchase specifications that the determination of whether or not a submittal meets the specifications is a prime consideration. Consequently satisfactory specifications for minerals should not only incorporate physical, chemical, and mineralogical requirements that are practical but should also establish the means by which both buyer and seller can be assured that materials meet stated requirements. The Munition Board's Material Purchase Specification for corundum, dated February 1954, covered two grades of crystal corundum intended primarily for abrasive use. It established limits of size and of composition: Grade A, at least 95 pct +3 mesh and 92 pct alumina (Al2O3); Grade B, at least 95 pct +7 mesh and 90 pct alumina. It also specified that "of each lot of material, not less than 95 percent shall have a hardness equal to or exceeding nine (9) on Moh's Scale." These specifications were unsatisfactory for several reasons. They did not allow the purchase of lower grades of corundum being used by industry. Neither did they specify exactly what a corundum ore actually was, except that it should contain so much alumina and have a certain scratch hardness. Nothing was said about the abrasive qualities of the material that was to be purchased primarily for abrasive use. During the period 1946 to 1948 supplies of the two grades defined in the then current specifications continued to decrease. Early in 1949 industry recommended that the finer sizes of corundum known as "crystal corundum concentrates," ¼-in. to 16-mesh material, be added to the stockpile specifications and that lower grades of crystal corundum also be included. In the spring of 1949 the National Bureau of Standards and the Bureau of Mines were asked by the Munitions Board to cooperate in developing more practical specifications for grading natural corundum ores. The National Bureau of Standards indicated that it would investigate physical test methods for determining abrasive characteristics of corundum, and the Eastern Experiment Station of the Bureau of Mines at College Park, Md., stated that it would consider the mineralogical aspects of the problem. Members of these two agencies, in consultation with representatives of the Office of Materials Resources of the Munitions Board and of the Federal Supply Service of the General Services Administration, and with the cooperation of industrial suppliers and consumers of abrasive corundum, developed, in a fairly short time, more practical specifications for six grades of corundum ores. The new specifications, issued January 1951, were for corundum, natural crystals, as by this time high-purity synthetic corundum was available and widely used. Nevertheless, for certain specific applications the natural product was preferred over the synthetic material. It has been extensively used in forming snagging wheels. It breaks into more or less cubical particles, whereas artificial corundum fractures into splintery shapes. These produce irregular cuts in glass, while the more symmetrical shape produces a more uniform ground surface. For this reason natural corundum has been preferred for certain types of lens grinding. Pure corundum is clear, colorless alpha alumina (A12O3), but it is rarely found in nature in this form. The most important gem varieties include the blue and yellow sapphires and the ruby. Minute impurities of titanic oxide impart a blue color,

Jan 1, 1955

By Cresap P. Watson

ABOUT the time this magazine reaches its readers, Cresap P. Watson will celebrate his 53d birthday. If he spends that birthday at his West Los Angeles home, he won't be far, as distance is measured today, from Santa Barbara, where he was born on July 8, 1895. He is truly a member of a petroleum family; one brother, N. O. Watson, managed Royal Dutch Shell interests in Venezuela for years and is now general manager of the Caribbean Petroleum Co. at. Maracaibo; another brother, Rex, is vice-president of the Drilling and Exploration Co., while brother-in-law Ben Belt is an executive of Gulf Oil. His own life has centered in the petroleum industry since his first job in 1913 as camp cashier for a Mexican oil field at Tampico. Down on the isthmus of Tehuantepec he advanced to tool dresser and' production foreman for the company. The first World War interrupted his Mexican experience by transforming him into an artillery officer in France. Once the Army ceased to demand his services¬by then it was 1919-he returned to the task of furthering his professional career as agent for the Amerada Petroleum Corp. By 1927 he had reached the position in which he could be called an executive in the petroleum industry, having organized and become president of the Federal Royalties Co. His activities in local and national legislation affecting the petroleum industry increased as has his advocacy of the development of oil and gas fields under sound engineering and conservation principles through unitization or other co-operative forms of operation. Considerable amounts of his time go to the promotion of industry public relations.

Jan 1, 1948

"In 1899 the American Refining and Smelting Company obtained control of the East Helena Smelter, and have added improvements from time to time.The plant is four miles east of Helena, on the Northern Pacific and Great Northern railroads, with hourly street car service from Helena.Electric power is obtained from Canyon Ferry dam, twelve miles east on the Missouri river, and about 800 h-p. is used in the blowing engines, crushing machinery, cranes and locomotives.Besides the Montana ores convenient to the above railroads, a large part of the ore supply comes from the Coeur d'Alene district, Idaho, and is mainly lead ore and concentrates.A modern automatic sampling mill, with Vezin samplers and a capacity of 50 tons per hour, was completed in 1912.Three blast furnaces, each 48 inches by 136 inches, are now in continuous operation, and the monthly production of silver-lead bullion is six thousand tons.A part of the ore roasting is done in Godfrey furnaces, in connection with the Huntington-Heberlein process, 12 pots being in use, with a capacity of 300 tons per day.Four Dwight-Lloyd sintering furnaces, each 42 inches by 264 inches, and a smaller experimental machine, with a combined capacity of 440 tons per day, are in steady operation, and are successfully roasting ore as well as sintering flue dust. These machines are in great favor and results are being carefully watched.Three bag houses are used in connection with the 1,800 brick flue chamber, and each bag house contains 1,260 cotton bags, each 18 inches in diameter by 30 feet long, suspended on vertical roads. The product saved by the bags contains about 50 per cent lead and is retreated in the blast furnace after sintering.About 450 men are employed."

Jan 1, 1913

By Wolfgang O. Gluschke

INTRODUCTION Virtually all countries have general legislation covering most aspects of mining and mineral processing, including investment and tax laws, safety and health regulation, and specific rules applying to exploration reporting procedures. Yet most developing countries negotiate individual agreements with foreign investors for major mineral projects, in particular when all or part of the expected output is exported. Such agreements are known under several different names, as for example concession agreement; technical assistance agreement or service contract; management agreement; production sharing contract; joint venture; or contract of work. The objectives and conditions governing such contracts are as diverse as these titles are. While a mining project is only one among a large mumber of similar undertakings in industrial countries, in most developing countries such projects usually have a dominating position within the country's economy. The general legislation is often inadequate and insufficiently detailed to cover all aspects of large projects with extensive foreign inputs and international markets. Therefore, the need for specific arrangements. Specific arrangements may also become necessary due to the complexity of markets for mineral products, the large number of participants - equity partners, suppliers, financial institutions, buyers, etc. - or economic and political conditions in the host country and fiscal regulations in the home country of the investors. Most agreements are concluded between governments, or government agencies, in developing countries and private industry headquartered in developed market economies - Canada and the United States of America in North America, Western European countries, Japan, South Africa and Australia - or, in some instances, with state-owned firms in these countries. There are fewer agreements between developing countries and the centrally planned economy countries - Eastern Europe and the USSR - which cannot be considered here because of absence of adequate information. Agreements can be concluded at any of the different stages from exploration through closing of a mine. While most contracts are negotiated at the time when a potentially viable ore body has been delineated and investigated sufficiently to anticipate a realistic time for commencement of production, other agreements start with "grass-roots" exploration, during operation of a mine, smelter or refinery or, exceptionally, after a temporary shutdown. While several major provisions are included in all types of agreements, others are covered in much more detail (or not at all) in some contracts reflecting the specific work programme of each project. While it is realized that subdivision and classification of complex contractual relations is necessarily arbitrary to a certain extent, such grouping is useful in practical terms, especially for the non-specialist. The following discussion, therefore, will start with a description of the major forms of contractual relation - concession, investment contract, joint venture, management agreement, service and production sharing contracts. Major issues covered in all, or almost all, agreements will then be dealt with. These include stages of development, corporate structure and control, fiscal arrangements, infrastructure development and environmental law, and dispute settlement and renegotiation. FORMS OF CONTRACT RELATIONS There has been marked change in the type of agreement entered into during the 1960s (and before) and the early 1970s and the period thereafter. While straight "concessions" - granting of exclusive rights to foreign investors over a certain deposit or areas with little restriction or well-defined obligations - were the rule during the first half of this century, more complex agreements have evolved since. Some of these cover every conceivable aspect, foreseen or only possible, and define rights and obligations of all partners to the last detail. Over the years, agreements have without doubt become more beneficial for the developing host countries, in part as a result of well-publicized nationalizations, as for example in Chile, and in part due to changed attitudes in all countries

Jan 1, 1985

By David White

Jan 1, 1925

By JOHN MARKLE

JOHN MARBLE, mining engineer, coal operator, philanthropist, member of the Institute since 1879, vice-president in 1903-04, has been paid the well deserved tribute of Honorary Membership. The presentation of the diploma was made at a luncheon in New York on Feb. 13, the citation reading: "In recognition of his work as an engineer and administrator of mines and his services to mining engineering education." Within the last month Lafayette University dedicated the new John Markle Mining Engineering Building, the gift of the eminent alumnus for whom it is named. In addition, Mr. Markle has contributed a maintenance fund for the carrying out of far-reaching plans for improving the mining courses to be given at the Institution. One of his theories is that quality rather than quantity of engineering graduates is the need of the profession. John Markle was born in Hazleton, Pa., in 1858. He received his degree of M. E. at Lafayette in 1880, and married Mary Estelle Robinson in New York City in 1884. Since 1880 he has been associated continuously with the firm of G. B. Markle & Co., and its successor companies. He has also been an official of numerous other important companies, although he is now retired from active business life.

Jan 1, 1930

By I. S. Levy, J. L. Brimhall, B. Mastel

Specimens of' Hastelloy X-280, a low-cobalt version of the solid-solution- hardened nickel-base alloy Hastelloy X, were given a series of thermomechanical treatttzents. They were then Lensile-tested at room temperature and 1350°F. The Microstructures of the specimens tested at 1350°F were studied by electron Microscopy. Microscopy showed that dislocation tangling, caused by the cold working, mas still in evidence after aging-for 24 hr to temperatures as high as 1550oF. (Cr, Mo)23 C6, (Fe, Mo)6 C'. as well us an unidentifiable phase precipitale due to the combination of the thermomechanical treatments and subsequent tensile strain. The room -temperature and 1350°F tensile properties show a general increase ill strength and decreccse in ductility with increusing cold-work level. This is due to the dislocation taangling-. PerLurbatiot~s to this general trend occur- due to solid-solution weakening at the higher cold-work levels as a direct result of the preciplitation reactions. THE requirements for corrosion resistance and high-temperature strength place nickel-base alloys among the more promising materials for advanced nuclear reactor applications. However, when these alloys are irradiated at service temperatures, they generally suffer severe embrittlement'" and reduction in rupture life.3 Certain experimental treatments resulted in improvements in the tensile and stress-rupture properties of Hastelloy X-280, a solution-hardened nickel-base alloy.' To provide a basis for understanding these improvements, unirradiated tensile specimens were examined by electron microscopy. The results are reported in this paper. EXPERIMENTAL DETAILS Material. Hastelloy X-280, a low-cobalt version of Hastelloy X, is a member of the solution-hardened class of nickel-base alloys. The Hastelloy X-280 was obtained from 4- and 1-in: thick plates in the mill -annealed condition. Table I gives the chemical composition of the material as reported by the National Spectrographic Laboratories. ~x~erimental Treatments. Plates of suitable size, 12 by 3 by 1 in., or by + in., were cut under a water jet from the stock material and examined ultrasonic -ally for homogeneity of grain size and absence of voids. The acceptable plates were solution-treated at 2150°Ffor 1 hr and air-cooled. These plates were then reduced in thickness by cold rolling 0, 10, 15: or 20 pct along the original rolling direction. The plates were machined into buttonhead tensile specimens with a gage diameter of 0.125 in., with a gage length of 1.125 in., and with their tensile axes parallel to the rolling direction. The specimens were examined for quality of finish with a penetrant dye, ultra son ically checked for voids, and finally given a dimensional tolerance check with an optical comparator. The acceptable specimens were aged for 24 hr at either 1000" or 1500 F and air-cooled. These specimens were then held at 540°F in a water loop for approximately 18 days to qualify as controls for similar specimens irradiated under the same conditions of time, temperature, water chemistry, and flow rate. Table U summarizes the treatments. These treatments were investigated to establish whether prior precipitation and stabilization of carbide phases at strain sites within the matrix could reduce the amount of carbides available for precipitation at grain boundaries during service. Tensile-Test Conditions. Specimens were tested to fracture at room temperature or 1350 F in air on an Instron tensile-testing machine at a crosshead speed of 0.05 in. per min. The time for the furnace to reach equilibrium at 1350°F was approximately 30 min; soak time prior to testing was 15 min; and test duration was approximately 5 min.

Jan 1, 1968

By J. Kostuik, M. J. de Bastiani

The method of mining the uranium orebody at Denison mine in the Elliot Lake district of Ontario is discussed. Details of the development of haulage-ways and rooms are giuen, as well as methods of ore haulage. The milling and beneficiation stages are noted briefly. Located in the Elliot Lake mining district of Canada, the Denison mine lies between Sudbury to the east and Sault Ste. Marie to the west, Fig. 1. This area is overlain by Huronian sediments filling a basin in the Keewatin basement complex. Subsequent folding of these sediments developed a synclinal structure, known locally as the Quirke Lake Trough, which forms the northern portion of the now famous big Z structure, the geological trademark of this region. Plunging to the west and extending nine miles from the granite outcropping in the north to the Keewatin lava contact to the south, the syncline has dips of 10" to 45" on the north limb and 10" to 20" on the south limb, Fig. 2. The Denison orebody, located on the north limb of the syncline, lies between 800 and 3000 ft below the surface. The main ore zone is within 50 ft of the Missisagi-Keewatin contact (see Fig. 3), and it varies in thickness from 6 to 32 ft. This ore zone has a composite dip of 19" to the south and is composed primarily of two pyritized conglomerate beds separated by a band of pebbly quartzite stratum. The upper conglomerate bed of the main zone varies from 2 to 15 ft in thickness, while the lower conglomerate varies from 2 to 12 ft. Over extended areas, mining is carried out over the entire section comprising the two conglomerate layers and intercalated quartzite; in other areas, the conglomerates are selectively mined, depending on the thickness of the quartz-ite. The ore zone contains approximately 6 pct sulfides and 80 pct silica. The predominant uranium-bear ing minerals are brannerite, uraninite, and an unidentified mineral (probably thucolite). Some of the uneconomic metallic minerals identified to date are pyrite, pyrrhotite, and chalcopyrite. MINE LAYOUT Shafts: Underground exploration and development (Fig. 4) were performed through two shafts 1/2 mile apart. The No. 1 shaft, sunk to a depth of 1856 ft with the main station established at the 1600-ft ore level, is a 250-sq ft, 5-compartment shaft capable of handling 4500 tpd. Two 5x5-1/2-ft compartments serviced by a 12-ft diam double-drum hoist, are used for hoisting 190-cu-ft bottom-dump skips in balance. A 30-man cage, offset by a counterbalance, operates within a 5-1/2x11-1/2-ft compartment. The fifth compartment is used as a manway, pipe, and cable-way. This shaft is also provided with an intermediate pumping station used during the initial mining phase as well as loading-pocket and spill-pocket installations and pumping facilities. The 480-sq ft No. 2 shaft, located down-dip from No. 1 shaft, has a 2776-ft depth. Serving as the main hoisting shaft with a maximum capacity of 9000 tpd, it has eight compartments, four of which are used for hoisting ore in 10-ton capacity bottom-dump skips. These four compartments, measuring 5x6-ft in section, are serviced by two 12-ft diam double-drum semi-automatic hoists. A 50-man cage is operated in a 15x8-ft compartment, and it is counterbalanced by a 12-ton weight. Two compartments are used for ventilation, manway, electric cables, and pipes. A station was constructed at the 1325-ft horizon of the No. 2 shaft for relay pumping. The main sta-

Jan 1, 1961