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By L. F. Elkins

Water coming into wells with bottom water present in the Fosterton field, when their oil recovery was only 0.1 to 1.5 per cent of oil in place below the lowest perforation, confirms lack of shale barriers to vertical flow which also are not apparent in cores and electric logy. Low contrast of vertical and horizontal permeability, high mobility ratio betweerz oil and water zone and pos.rible rate effects due to gravity Combine to prevent easy analysis of water invasion pattern and efficiency by analogy or intuition. Theoretical analysis of performance including these factors using a new direct nurnerical .solution of potential distribution in a network led to unanticapted indications that water would under-run the entire oil reservoir with low volumetric coverage if supplied through natural influx or peripheral water injecfion below the oil-water contact. An unusual pattern of water injection is to he adopted in this recently unitized pool to provide more uniform water flooding in that two-thirds of the oil reservoir not underlain by bottom wafer. INTRODUCTION The Fosterton field, Southwestern Saskatchewan, Canada, was discovered in Jan., 1952. It produces at a depth of 3,100 ft from a pinch-out of the Roseray sand at the Lower Cretaceous-Jurassic unconformity. The field, covering 2,500 acres, contains 54 wells on 40-acre spacing. Development was essentially complete in June, 1954, but significant production did not start until May, 1955, when a pipeline outlet became available. Within one year rapid in- creases in gas-oil ratio and early encroachment of water created operating problems in the down-structure eastern half of the field and raised serious questions about reservoir performance and ultimate recovery. This paper describes the unusual behavior of water encroachment—on both well and reservoir bases—and the analyses made to interpret it. The field was unitized July 1, 1958, for water flooding. A somewhat unconventional

By C. A. Stetefeldt

FoR the convenience of those who do not care to enter into the details of this long essay, I begin with a summary of the most important results it presents. The extraction of silver by the lixiviation-process from ores which have been subjected to a chloridizing-roasting, is based upon the fact that silver chloride is easily soluble in solutions of sodium or calcium hyposulphite, and that silver is precipitated from such solutions by an alkaline sulphide, with regeneration of the hyposulphite salts. In case the ore contains lead a large portion of the latter is and dissolved, lead sulphate being soluble in hyposulphite solutions. If, at the same time, copper is present, the sulphides precipitated from the solution, contain silver, copper, and lead, a combination of metals not desirable for subsequent treatment. Mr. E. H. Russell, of Park City, Utah, is the inventor and the patentee in the United States and several foreign countries of a new lixiviation-process, based upon the chemical facts discussed in this paper. Mr. Russell has discovered that lead can be completely separated from a sodium hyposulphite solution, as lead carbonate, by sodium carbonate or purified soda-ash, without precipitating any copper or silver. After decanting the solution from the lead carbonate, silver and copper are obtained from it in the usual way. This method of separating lead prohibits the use of calcium poly-sulphide as a precipitant for the sulphides, because any calcium entering the regenerated lixiviationsolution would also be precipitated as a carbonate with the lead by soda-ash. Hence, a sodium sulphide must be employed. A full investigation has demonstrated that this is by no means detrimental. Sodium sulphide and hyposulphite are more advantageously used in the lixiviation-process than the corresponding calcium-salts. Another defect in the lixiviation-process consisted in the necessity of a very perfect chlorination of the silver in the ore, because silver in

Jan 1, 1885

By A. W. Gauger

DESPITE many handicaps and in the face of many discouragements anthracite and bituminous coal producers continue to supply the needs of the nation now vastly multiplied by the demands of the greatest war of all time, total output being about 620,000,000 tons of bituminous and 64,445,000 of anthracite. The progress made by this industry during the national emergency reflects more credit on all connected therewith than will ever be given. Not only has the industry been called upon to produce more coal than ever before but it has also sent representatives to England to study and advise on methods for increasing production there, and has co-operated with other Allied Nations by welcoming engineers sent to this country to study American practice. One noteworthy development has been the growth of strip mining in the

Jan 1, 1945

Born, March 28, 1853 Died July 23, 1916 On July 25, 1916, the Board of Directors adopted the following minute and directed that it be entered upon the records of the Board & published in the Bulletin of the Institute, and thereof be sent to the family of Mr. Kirchhoff: Charles Kirchhoff was one of the oldest, most widely known and most highly esteerned members of the American Institute of Mining Engineers. On his return in 1875 from a European course of study, to begin a highly successful professional career, he joined the Institute, then just commencing to acquire both national and international recognition. He became at once, and-for more than 40 years continued to be, its earnest , and active supporter, serving it as Manager, Councilor or Director for terms aggregating 9 years,-as Vice-President for 2 years, and twice as President for a year. During the critical period of the erection of the United Engineering Society's building, and the transfer of the Institute to permanent head-quarters therein, Mr. Kirchhoff was its efficient representative in the United Engineering Society, and on the Building Committee. In 1910, amid the congratulations of colleagues, employees, and innumerable friends, Mr. Kirchhoff retired from active business as Vice- President and General Manager of a great technical publishing company. Yet he sacrificed of his well-earned leisure yet one more year, to serve the Institute as President through 1911.

Jan 9, 1916

By R. F. Hinds

A pressurizing system was designed and built to apply a radial pressure of 5.000 psi to rock samples. Samples of the Bradford, Weir and Kirkwood sandstones were subjected to radial pressures parallel and perpendicular to the bedding in the system and the changes in conductivity, porosity and permeability were deter-mined. Asymptotic decreases in conductivity, porosity and Klinkenberg permeability were observed over the 0- to 3,500-psi range. From these data, the increase of formation factor over the same range was calculated. The cementation exponent expressed in the Archie equation was found to increase with pressu,re. The rate of change varied from formation to formation. Only small differences were observed for samples taken parallel to the bedding as comnared to those taken perpendicular to it except for the Bradford sand. Above 3,500 psi the data are not good enough to tell if the properties continue to fall-off asymptotically or in a different manner. A possible explanation for the probable litnit of the asymptotic rate around 3,500 to 4,500 psi is that this represents the maximum pressure which the formations have unrdergone during their geological life as a result of burial. INTRODUCTION For many years measurements have been made in the laboratory of the properties of oil-bearing sandstones with little consideration being given to whether these properties had been changed when the samples were moved from their original position in the ground to the laboratory. Relatively little has been reported in the literature on the effect of pressure on the properties of sandstones. The changes in permeability for eight typical consolidated oil-bearing sandstone samples with overburden pressure (0- to 15,000-psi range) was presented by Fatt and Davis' in graphical form. In 1953 Fatt' also reported the relationship between porosity and overburden pressure for four typical consolidated oil-bearing sandstone samples (0- to 5,000-psi range). Fatt later described the changes of formation factor and porosity of 20 typical oil-bearing sandstone samples with overburden pressure changes (0- to 5,000-psi range) giving the values of the coefficients and exponents in the Archie' equation, and the more general Winsauer equation', where C, k and m are empirical constants, F is the formation factor, and + is the porosity. During the experiments of this investigation the core was contained in a neoprene rubber sleeve as shown in Fig. 1. It was held between two steel end members which were mounted in a steel cylinder. The unassembled pressure cylinder with its component parts is shown in Fig. 2. The core was insulated from the two steel end members by a Teflon sleeve with a small hole in the

By H. S. COOLEY

TO talk about a "factor of economy" in connection with the wire ropes used in mining practice may be coining a new phrase. If such be the case it needs no other apology than that economy in wire rope usage is so bound up with the factor of safety as to justify a similarity in naming that makes one suggest the other. At the latest Wire Rope Research Conference, held under the auspices of the A. S. M. E., Re- search Committee and Engineering Foundation, data were introduced covering mine ropes working under

Jan 1, 1930

By William B. Plank

IN this paper are presented the results of a complete statistical survey of the enrolment, courses and degrees, and the employment situation of recent graduates in all of the 46 institutions in the United States, including Alaska, and four of the six schools in Canada that grant degrees in mineral technology. The data were collected by the writer by means of a questionnaire in December, 1933, to which all the institutions, except one, replied. Included also are data of a similar study made by the writer in May, 1933, for the S. P. E. E. summer session of mining and metallurgical teachers at the University of Wisconsin and published in the Journal of Engineering Education for December. 1933. Some of the data of a paper of the writer's entitled, "The Trend of Mineral Engineering Student Enrolment in the United States," read at the A. I. M. E. meeting on Feb. 16. 1931, are given for comparison. Acknowledgment is made to all the administrative officers of the institutions who took the time from their busy lives to supply the in- formation asked for. Their fine cooperation has alone made possible these two surveys with a completeness of detail never before attempted

Jan 1, 1934

By W. T. Swensen

The Anaconda Company, through its wholly owned subsidiary The Anaconda Company (Canada) I,td., has investigated, optioned and partially developed a large tonnage of iron ore amenable to magnetic concentration. The reserves are located in north central Ontario and occur within a twenty-two mile belt of layered and intricately folded metamorphic rocks, close to the north contact of an igneous complex of granite and pegmatite. There are two main ore deposits. Briarcliffe is a steep to vertically dipping body 100 to 500 feet wide and over a mile long. The Two Mile Lake deposit is flat dipping and confined to an open, asymmetrical syncline; it is approximately a mile wide and 250 to 4.00 feet thick. On its flat easterly plunge, it is saucer-like in shape and is amenable to open-pitting for an east-west distance of several thousand feet. Magnetometer surveys, confirmed by drilling, indicate at least a three mile eastward extension of this deposit. Location and Access: The property is located in the Kowkash Mining District of northwestern Ontario, roughly forty-four miles north of the community of Nakina on the main line of the Canadian National Railroad. (Fig. 1) Access during the exploration period was entirely by airplane from Nakina. (Fig. 2) More recently, Nakina itself was connected to the highway network in the Longlac-Geraldton area. The property is roughly 190 miles by existing and proposed railroad from the Great Lakes waterway system. The Trans-Canada pipeline moving natural gas from western to eastern Canada passes through Geraldton roughly 70 miles south of the property. Topography: The surface features in the area are typical of a sizeable portion of the Precambrian Canadian Shield area. Many lakes, low swampy areas, and glacial moraine-type features are common in this recently glaciated area. The average elevation is between 800 and 900 feet above sea level, and the relief is probably less than 100 feet with the greater portion of the area less than 50 feet. The topographic "highs" are formed either by outcrops that were resistant to glacial erosion or by moraines, eskers and drumlins which were deposited upon the recession of the glaciers. The better mineralized zones, composed chiefly of quartz and magnetite, commonly form ridges resistant to erosion and weathering. Previous Work: Because of the obvious outcrop of the magnetite-rich beds and knowledge gained from early developments within the general region, it is conceivable that the presence of the iron formations has been known for a good many years. The area is included in studies made by L. F. Kindle* in 1929 and 1930 for the Ontario Department *Kindle, L.F., Kowkash-Ogoki Gold Area, Ontario Department of Mines Annual Report, Vol. XL, Part IV, 1931; map 40f

Jan 1, 1961

By L. H. DeWald

During the examination of various commercial brands of copper wire bars, which had exhibited different degrees of adaptability for being drawn into fine gages of wire by the present-day high speed machine, it was found that each brand had a more or less characteristic crystal macrostructure. The extremes of these macrostructures are similar FIG. 1.-EFFECT OF METAL TEMPERATURE IN CASTING ON CRYSTAL MACROSTRUCTURE OF BAR. Reading from left to right, metal temperatures were 1166" C., 1149" C., 1132" C.. 1121" C., 1093" C. to the maximum variation shown in the photomacrographs reproduced in Fig. 1. As the various brands did not differ materially in chemical composition, it was concluded that the differences in structure were the result of variations in casting technique.

Jan 1, 1931

By John D. Sullivan

A DISCUSSION of the developments of the past decade in the field of refractories, and the effect of these developments on the performance and life of open-hearth furnaces, is perhaps best introduced by reference to Fig. 1. This shows the most important types of refractories doing into various parts of the furnace, together with their cost, and remarks on their use. It has been estimated that half of the refractory makers market comes from the iron and steel industry, and something like one-third of all refractory brick used finds its way into open-hearth furnaces. To melt steel, a furnace capable of withstanding temperatures close to 3000 deg. F. is required. The furnace is assembled of various refractory materials selected by experience and economic considerations. Furnace structures today, from a refractory standpoint, are considerably different from a quarter century ago. Furnace operators, interested in the performance of refractories, care little how they are made or where they come from so long as they give reasonable service. But, the entire history of the refractory is important and technical knowledge of the ceramic materials used in making the refractory is necessary to the manufacturers, so that the proper article gets into the hands of the ultimate consumer.

Jan 1, 1936

By E. J. Duggan

CLIMAX ore is an altered and highly silicified granite, about half of the gangue being quartz. Molybdenite is the only mineral recovered and most of it is intimately associated with the quartz in fine veinlets. Other minerals are molybdite, pyrite, and chalcopyrite. Although the molybdite may be readily extracted by hydrometallurgical methods, its content is too low to make this profitable. The pyrite ranges from 2 to 5 per cent and the chalcopyrite from 0.03 to 0.05 per cent. There is not enough copper to make its recovery attractive and one of the problems is its elimination, and that of pyrite iron, from the final product. On account of the high degree of dissemination of the molybdenite and the necessity of eliminating the iron and copper, fine-grinding followed by flotation is the only known feasible method of concentration. Two factors, peculiar to Climax ore, have a predominating influence on the metallurgical attack: (1) Molybdenite is one of the most easily floated minerals. High recoveries may be made with pine oil alone if the

Jan 1, 1946

By Howard A. Meyerhoff

AS a source of mineral wealth, the larger islands of the West Indies have never had an enviable reputation. The Spaniards took possession of them in the sixteenth century hopeful that they would yield gold; but it was not long before they knew the rather rigid limitations of Antillean gold production and were seeking-and finding ---richer deposits of the precious metals in Mexico and on the west coast of South America. Although a great deal of wealth changed hands in the West Indian islands in subsequent years, the fact may be laid to the abundance of pirates and privateers and not to the richness of local ore bodies.

Jan 1, 1941

By F. Seitz

STAFF: Editor, Gerhard Derge Carnegie Institute of Technology Schenley Park Pittsburgh 13, Pa. Editorial Assistant, M. A. Redmerski Managing Editor, James J. Burke THE METALLURGICAL SOCIETY: John Chipman, President; W. R. Hibbard, Jr., Post-President; C. C. Long, Vice-President; T. D. Jones, Treasurer; R. W. Shearman, Secretary. PUBLICATIONS COMMITTEE OF THE METALLURGICAL SOCIETY: R. Maddin, Chairman; Dennis Carney, J. C. Fulton, J. H. Hollomon, T. B. King, C. C. Long, W. 0. Philbrook, J. D. Sullivan, David Swan, and F.L. Vogel. Review and selection of manuscripts is under the supervisian of the following Publications Committees: Extractive Metallurgy D ivis ion: T. 0. King, Chairman; S. J. Dick inson, R. P. Hermsdorf, R. Schuhmann, Jr., and H. H. Kel logg. Institute of Metals Division: F. L. Vogel, Choirmon; R. L. Smith, Vice Chairman; R.W. Balluffi, J. H. Bachtold, A Servi, C.D.Graham, Jr., C. G. Goetzel, F. E. Joumot, Jr., G. E. Pellissier, Paul Gordon, Jock Washburn, Harold Margol in, A. U. Seybolt, I. R. Kromer, R. A. Meussner, R. W. Guard, M. Harmon, J. N. Hobstetter, Dean Starr, P. Shewmon, R. Gordon, J. 0. Betterton, and E. Morgan. Iron and Steel Division: W. 0. Philbrook, Chairman; F. C. Langenberg, C. W. Sherman, J. Wagstaff, and E. J. Whittenberger. Published bimonthly by the American lnstitute of Mining, Metallurgical, and Petroleum Engineers, Inc., 29 West 39th Street, New York 18, N. Y. Telephone: PEnnsylvania 6-9220. Subscription $20 per year for non-AIME members in United States and North, South, and Central America; $25, foreign; $5 for AlME members. Single copies, $4.00, single copies foreign, $5.00. The AlME is not responsible for any statement made or opinion expressed in its publications . . . Copyright 1959 by the Americon Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. . . . Registered cable address, AlME New York ... Indexed in Engineering Index, Industrial Arts Index, and Chemical Abstracts . . .Second class postage paid at New York, N. Y. , ond Ann Arbor, Mich. Volume 215, Number 3

Jan 1, 1960

By R. W. Drier

THE conductivity of copper wire is of prime importance to the electrical industry and consequently to the copper refiner and wire manufacturer. Annealed copper wire has a higher conductivity than hard-drawn wire, but, on the other hand, its tensile strength is lower. In an attempt to explain the reasons for these changes in property or at least to study the conditions existing in these two types of copper wire, the experiments described here were carried on in the Department of Metallurgy of the Michigan College of Mining and Technology. This is only a partial and preliminary report on some of the work done to date on a research program of which the object is an intensive study of copper. It is offered with the hope that, though it is not an exposition of the most rigorous of conclusions, the general trend of inferences which may be drawn will be of value and interest.

Jan 1, 1929

By A. T. Shurick

THE NRA Administrator's casual reference to the coal code as the next "pineapple" to be fixed was a conservative estimate of his job. This thorny and adamantine morsel now looms as a critical test of NRA. A failure in coal supplies would have the gravest potentialities in the Administration's program at this time. And the loss of prestige from a breakdown of the enforcement machinery in this initial large-scale test of strength would accentuate the incipient indications of insurrection in other directions. General Johnson has had a difficult task. It involves problems festering for a quarter of a century. A succes¬sion of Presidents have been glad to tide over their respective regimens with inconclusive expedients; they have been baffled by the complexities of the technical angles and hopelessly irreconcilable concepts of powerful conflicting interests with large issues at stake.

Jan 1, 1933

By R. F. Shurtz

The problem of estimating the precision of systematic samples from a mineral deposit is attacked by interpolating the quality, or other attribute measured, by using Fourier approximation. Such approximation using trigonometric functions yields a particularly simple expression for the variance of the mean value of the attribute sampled. The increasing volume of publication in which the science of statistics has been applied to the problem of predicting the quality of an ore deposit from sets of samples taken from it might lead one to believe that engineering judgment can be replaced by statistics. There is, in fact, an implicit application of the principle of indifference or of "no advance knowledge" which has been discredited in modern statistical theory and practice. These pages will show that it is not always advantageous, efficient, or safe to apply this principle. This problem will be dealt with by using series of orthonormal functions to describe the distribution of the quality of ore in space as contrasted with the more commonly used distribution of quality as a frequency function. Mining engineers are rarely well acquainted with the use of such series or of the functions comprising them. These uses are commonplace in the fields of communication and information theory and it is not surprising that applications taken from these fields should be found appropriate for the analysis of the information contained in a set of samples from an ore deposit. It is hoped that presentation of the following basic, but incomplete, results will generate wider interest in this method and a fuller development of it as well as of the necessary computational techniques. FUNDAMENTAL PREMISES Random variables in the strictest sense are not very common in mine sampling. The sets of samples are almost always taken systematically and are, hence, not subject to all the laws governing random events. Therefore, unless there is indeed random experimental error in the determinations of quality, the treatment of systematic samples of n members as though they were random samples of n members often leads to calculation of confidence limits for the mean quality which are larger than they should be with the result that unnecessary additional sampling is done. The reason for this will emerge in the following discussion leading to Eq. 24 and its generalization. In order to inquire into such questions on a rigorous basis and at the same time avoid arithmetic complications that would obscure the concepts involved, a one dimensional distribution of quality will be assumed. The quality, Q, in suitable units is expressed as a function of the distance, x, along some straight traverse of the deposit. Such a function

Jan 1, 1967

By G. G. Oberfell

THOUGH the largest volume use of natural gas has been, is. and in all probability will continue to be as a fuel for domestic and industrial heating, it has various market outlets, both as a fuel and as a raw material for the chemical industry. Natural gas is a preferred type of fuel where ease of control, fuel uniformity, and freedom from ash are of primary importance. Other industrially important uses are as a source of carbon black and as a fuel in various low-cost heating operations. Many other uses are of varying importance and new potential uses are continually being uncovered, some being of economic importance to the gas indus¬try as a whole, but most of them involve such small volumes of gas that they are only of passing interest. Since various products extracted from natural gas and recovered as by-products from petroleum refining, such as liquefied petroleum gas and fuel oil, are being utilized in many industrial and domestic heating applications, some consideration will have to be given such materials in order to present a reasonably complete story of the importance of natural gas. Some of these materials may prove to be transient competitors and will not be available when more profitable uses are found for them. Meanwhile, however, the potential volumes of such materials available, the current volumes being marketed, and the nature of the utilization are considered as constituting an essential part of the over-all fuel picture.

Jan 1, 1946

By P. T. Allsman

INTRODUCTION The honor of being the recipient of the Mining Society's Daniel C. Jackling Award for 1966 imposes on me the responsibility to search for the subject that I would be best qualified to discuss. It seems that my experience in the mineral industry — nearly 15 years in private and 30 years in public employment — should uniquely qualify me to comment upon the relationships between the mining industry, mineral engineering as a profession, and government, and the changing economic, technologic, political and social changes that dictate their relationships. Such conditions, the increasing knowledge of the world mineral resource base, the greater demands of an expanding population with a rising standard of living, shall be evaluated with respect to our profession — mineral engineering. In all of these forty or so years, I have been in close touch with many phases of the mineral and energy resource industries, especially those of the United States. Particularly during the past 10 years, I have had a ringside seat at the "goings on" in Washington. During all of this period I have observed and analyzed many of the problems of the industry and its relations with the government. During the past few years, I have had increased opportunity for doing research and have found a need to learn something about the mathematical techniques that are undergoing such a revival since electronic computers were developed. One of these techniques is multivariate analysis, which is a system for correlating a large number of complex variables. By applying this technique to the seemingly chaotic present-day situation, there emerges a course of steady improvement in the minerals resource industries that wars, depressions, and political strife have failed to obstruct for long. In short, I advocate a need for new concepts in mineral engineering to cope with the changes, pos- sibly adding many more specialized areas on one end of the spectrum, and broad engineer-generalist approaches at the other. The meeting place shall be where the intricate mineral resource problems at the frontier of knowledge merge into the socio-techno-logical problems of the world. HISTORICAL INVOLVEMENT OF GOVERNMENT IN MINERAL RESOURCE PROBLEMS Involvement of government in mineral resource problems undoubtedly is as old as government itself. But passage of the Mining Act of 1866, superseded by the Act of 1872, was the first major entry of our Federal Government into the problems of mining. Passage of the law was necessary to resolve many conflicting claims and disputes in mining. The General Mining Law of 1872 and the Mineral Leasing Laws of 1920 apply to millions of acres of public lands and to certain privately owned land on which the mineral rights have been reserved to the Federal Government. The extensive involvement of government in the mineral industry business today often comes as a shock to the mineral engineer who has begun to climb the ladder to the top in his company. He is often poorly prepared to cope with the situation and becomes frustrated and even hostile. Better knowledge of the role of government perhaps would ease his situation. In our political system, private industry is responsible for producing minerals. To make certain that the production is adequate for a peace-time economy, and to guarantee the Nation's security in an emergency, the Federal Government finds it expedient to develop policy and engage in regulatory, educational, and research activities. A few examples will illustrate the varied role of government in relation to mineral problems. In varying degrees many agencies of the Executive Branch of Government have responsibilities that influence the functioning of the mineral and energy industries. In addition, of course, Congress, the Judiciary, and State and local governments exercise great influence. The Department of the Interior is primarily responsible for activities to promote the development and conservation of mineral and fuel resources, and the

Jan 1, 1967

By Charles S. Barrett

NUMEROUS determinations1-7 of the tex-ture of cold-rolled polycrystalline iron, steel, and ferritic alloys have been made with good agreement among the various observers as to the principal features of the texture common to all, but there has been no adequate explanation of the texture in terms of the behavior of individual grains. This study presents an explanation of the texture based on the observed rotation of single crystals when deformed in a manner similar to a grain in the aggregate, a method we have found useful in leading to a better understanding of compression and tension textures;8,9,10 in particular, the aim has been to determine experimentally the end orientations of rolled single crystals of iron. These are discussed in connection with the point of view of Wever1 and of Boas and Schmid2 that the rolling texture is a simple compression texture (compression normal to the rolling plane) superimposed on a simple tension texture (tension in the roll-ing direction), and the point of view of Kurdjumow and Sachs3 that three ideal end orientations exist.

Jan 1, 1940

By Joklik, G. F.

Most publicity about the copper industry nowadays is focused on the adequacy of ore reserves and on excessive mining capacity. These concerns, stemming from public awareness of actual and potential shortages and oversupplies, relate to production rather than consumption. Perhaps the reason for this one-sided view is that copper is thought of as a commodity which is conspicuously traded in world markets, rather than as one of many industrial materials that serve today's rapidly changing technology. Copper differs from other widely traded commodities in that its real cost of production has progressively increased since World War 11. The reasons for the increase are identifiable by analyzing operations in one of the world's large producing centres, the copper province of Arizona. Another respect in which copper differs from some other commodities is that increases in demand occur less automatically in the case of copper than they tend to in commodities whose consumption is more directly related to population growth. The copper industry's current inability to generate and attract needed investment capital is attributable to these differences between copper and other commodities; it suggests that the concept of copper purely as a commodity is outdated. The key to the problem is better integration between the activities of copper producers and users. Depending on circumstances, integration takes various forms- for example, investment tied to long-term sales con- tracts between producers in developing countries and consumers overseas; common ownership of producing and manufacturing facilities in industrialized nations like the U.S.; and consumer-oriented research and marketing by the copper producers.

Jan 1, 1978