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By Harlowe Hardinge, R. C. Ferguson

Laboratory and plant data covering 12 different operations show that lower than "standard" ball mill speeds increase grinding efficiency. In the case of high pulp-level mills, the gain is so great that the increase in capital cost of the larger lower speed mill will pay for itself in less than a year's time.

Jan 1, 1950

By AIME

THE history of the Mine La Motte area covers a greater period of time than any other mining operation west of the Mississippi, for it was almost exactly four centuries ago that the white man first visited the region. In May 1541 a few men from the party of Fernando de Soto traversed the place looking for silver which they understood the Indians had found in the vicinity. Some historians say that De Soto himself visited the place sometime later. No other white man came through again until the early 1700's. In 1712 King Louis XIV of France granted to Antoine Crozat a charter for transacting all business and government in the vast domain of the New Continent stretching from the Gulf of Mexico northward indefinitely. This

Jan 1, 1947

By Oscar A. Glaeser

MINE VENTILATION is an important factor in mine maintenance as well as having direct bearing on labor efficiency. Effective ventilation systems are costly, especially those for the deeper mines, but with intelligent direction the worth of a system is usually greater than its cost. In most mines using mechanical ventilation, and practically all deep mines, it has been found beneficial to equipment, timber, and the ground, to run the fan or fans continuously even though production has been curtailed or entirely suspended. Therefore, economies in ventilation may be overlooked when general cost reductions are necessary. The operating costs of a well-designed ventilation system should be capable of reduction during periods of curtailed or suspended operations. A mine that is ventilated by splits, or that can be sectionized, can reduce its fan-power costs considerably, and provisional divisions can sometimes be made in other mines, in which the air is ordinarily coursed through all the workings, without harmful effects.

Jan 1, 1932

By J. R. Finlay

The Cæur d'Alene silver-lead mining district of northern Idaho is probably best known to the general public as a seat of labor-troubles. So far as the writer is aware, little has been written and little is known about its geology and resources. People interested in lead-smelting are, of course, cognizant of the economic importance of the region, but they have not communicated much of their knowledge to the public. Exact figures as to the total output of the district are not obtainable, but the following estimates, covering the entire output of the 15 years during which the mines have been operated, are believed to be approximately correct: Group of Mines. Product. Wardner Group, including the Bunker Hill and Sul livan, Empire State-Idaho, Last Chance, Sierra Nevada, bur d'Alene Development Co... . $17,500,000 Cafion Creek Group, including the Gem, Frisco Con solidated, Granite, Standard, Mammoth, Hecla, Tiger-Poorman, Custer and Bell,.... 35,000,000 Mullan Group, including the Morning, You Like and Gold Hunter,........7,500,000 $60,000,000 This output covers the period of discovery and early struggles, and several periods of stagnation caused by strikes and other serious labor-troubles. In 1900 the output of the district was fully $10,000,000, and this figure would have been considerably increased in 1901 had not a curtailment of production been forced by the condition of the lead-market. In 1901 the product was about 150,000 tons of concentrates, with a gross. value of $8,250,000.

Jan 1, 1903

By W. E. D. Jr. Stokes

THE application of aviation to mining and petroleum operations, on the basis of economy and attainment, has become a demonstrated fact. According to Dominion Government records, 30. Canadian companies engaged in air transportation with northland mining camps, carried 13,000 tons of freight in 1935, and in 1936 carried 16,000 tons. In addition, many mining companies used planes to transport prospectors with canoes, outboard motors, gasoline drums and supplies to remote locations, and one company maintained a plane to take radium-bearing ore from its mine on Great Bear Lake nearly 1000 miles south to the rail-way at Waterways, Alberta. Heavy pieces of mining machinery weighing 2 tons are being carried by Ford trimotor planes over the Andes, at an altitude of not less than 15,000 feet. At Bulolo, New Guinea, 17,500 tons of disassembled gold-dredging equipment has been flown over inaccessible terrain, while supplies and building materials for a, community of 1000 whites have been transported by airplane. A 31..4-ton shaft was carried on one notable trip, while at another time an automobile, 2 tons of rice and a large safe went over the mountains in one plane. Fig. 1 shows an electric generator that was carried by plane to Bulolo. Many large American oil companies operated fleets of planes during 19:36, ranging from fast, luxurious air liners for executives to elaborate geological prospecting units, ambulance planes, freight carriers and pipe-line repair crews. According to the U. S. Geological Survey, commercial firms photo-graphed 16,291 square miles during 1935, while the Government compiled from aerial photographs by the Geological Survey in the United States 85,544 square miles. It was found that information could be determined in a fraction of the time required by surface methods.

Jan 1, 1937

By P. J. Jacquard, C. Jain

Interpreting pressure measurements is one of the fundamental problems in the operation of oil reservoirs. The principal methods and means of study zuhich are currently used are reviewed. Emphasis is placed on the necessity of improving the quality of the information to turn it to the best possible account. One of the important aspects of the problem is the development of a system of automatic interpretation of the pressure measurements. The proposed method aims at this objective: starting from the relation which exists between a local perturbation of permeability and its effect on the velocity potentials in the wells, we determine by successive approximation the modifications to be made to the permeability map by fitting the least squares between the measured pressures and the pressures indicated by the mathematical model. The method has already been successfully employed in the case of heterogeneous reservoirs of radial- circular symmetry. Its application is extended here to the two-dimensional case, and is illustrated by two examples, for which the results are presented. The conditions required for the method to become fully operational are likewise analyzed. I — INTRODUCTION One of the basic problems of production and recovery from oil fields is interpreting pressure measurements made in wells in the single-fluid-phase regime. Simplifying assumptions, for example supposing the reservoir to be homogeneous, make it possible to use more or less simple methods which permit the estimation, from these pressure measurements, of a mean value of the permeability around the wells. Considering the actual heterogeneity of the majority of reservoirs, and the phenomena of interference between wells, these methods are only indicative. Much has been published on the studies of different cases of comparatively simple heterogeneity: some have discussed the radial heterogeneity around a single wel1,l or vertical heterogeneity.2 The results of these works have shown the influence of variations of permeability on the pressure, but unfortunately they are not very useful in practice because they all are concerned with the phenomena around a single well, without interference between wells, and they correspond to relatively simple and theoretical schemes. These studies of reservoirs or parts of reservoirs on a larger scale are made by the electric analyzer or digital model. We define a permeability map and a porosity map, then reproduce the production history of the wells on the wells of the model, and note the corresponding pressures. These pressures are then compared with actuality, and the discrepancies observed are analyzed. From this analysis we deduce the modifications to be made to the maps of permeability and porosity, and repeat until the coincidence between the pressures indicated by the model and the actually observed pressures is considered adequate. We have adjusted the model. Obviously, in this method of investigation, everything depends on the formula which permits the modification of the permeability to approach the adjustment. Considering the complicated nature of the problem, some oversimplified formulas are poorly adapted to reaching a good adjustment. For example, we have shown that the elementary operation of increasing the permeability not far from a producing well to compensate for too low pressures in the well can, in certain cases, express itself by an effect exactly opposite. 3 The project described here is for a system where we begin with the pressure measurements and the several known parameters of the reservoir, and develop the most probable permeability map, taking account of the measurements available and a subdivision of the reservoir fixed a priori. Ideally, this system is conceived as one in which no manual intervention would be necessary. The model simulating the reservoir is only one part of the whole system, and it is neither the longest nor the most complex part. The need to integrate the model into an aggregate of much more extensive processes has led to the adoption of the digital solution, even though a solution combining the digital and the analog is perfectly conceivable. The simulating model is in that case no more

Jan 1, 1966

By Kennedy, Joseph E.

MANY things must be considered in coming to a decision as to what type of crushing and grinding equipment is to be used for preparing run-of-mine ore for concentration, amalgamation, flotation, or cyanidation. This paper is intended in no sense as a thorough discussion of these various factors, but rather contains a few observations based on a wide experience in the manufacture and application of milling machinery. One important governing factor is the tonnage to be dealt with. In large plants treating several thousands of tons in eight hours, a large jaw or gyratory crusher of substantial construction is standard equipment for reducing ore to 8 or 10 in. or finer. In open-pit work, using power shovels with 4- or 5-yd. dippers, a jaw crusher should have a receiving opening of 48 by 60 in., or 60 by 84 in., so that dynamite or hand sledging will not be required for breaking to a finer size before primary crushing. The coarsely broken ore is then conveyed by a belt to vibrating screens, the oversize from which is again conveyed by belts to secondary crushers having openings of 12 or 14 in., the product from which is conveyed to storage. From storage, the material goes to a finishing gyratory for reduction to 1/4 in. or finer.

Jan 1, 1936

By Jay A. Carpenter

THIS preliminary report from the Committee to Study Relations Between Students and the Institute is submitted to our member- ship for consideration and discussion before the general subject comes up for action at the Annual Meeting in February. At present, the A. I. M. E. has a dual relationship with mining students, each relationship in no may connected with the other. To the individual student the Institute offers for $2 a year a Student Associateship in the Institute which carries with it a subscription to MINING AND METAL- 'LURGY, a watch fob, and the privilege of becoming a Junior Member after graduation without payment of the -first year's dues, if one's application is accepted. To the student's college society it offers the privilege, upon application, of becoming 'an Affiliated 'Society, which brings with it no specific supervision or aid, and in turn requires no specific conditions as to membership, fees, or rules. This Affiliated Society is distinctly a school organization which Student Associateship in the Institute can he given special status or ignored, is the local .society sees fit.

Jan 1, 1934

By Daniel Bloomfield

ONE of the major problems of management is how to restore in some measure the personal relation-ship between employer and employed which, in the days of small concerns, meant better morale among employees. The complexity of industry today, the heterogeneous mass. of workers employed, many .of them new to this country and to its institutions, the inability of those whose task it is to get out production to spend much time on the problems of labor-all these and many other factors serve to make of great impor-tance the question of how to establish more satisfactory mutual good will. While there is no such thing as a sure cure for labor troubles, in spite of the fact that charlatans have been selling alleged cures to guileless employers, study and experience have brought to light methods of approach to the problems confronting management in its relation to labor that are well worth consideration. Labor problems must be approached with common sense and an open mind. Facts must be the basis of action. So it is with the question of morale in industry. What makes or breaks morale? What are the forces behind the actions of men? What is there in one man that makes him act differently from another man under similar circumstances? How are men affected by the actions of others in their own group or by the actions of those under whose supervision they work? These are questions that must be carefully studied if we are, to get at the bottom of industrial unrest. It is an easy thing to say that good will can be created by "treating men right." That involves so many things and points of view that it will hardly serve as a full answer to our problem; but it is a good starting point if we mean by right treatment the payment of wages consistent with the well being of the worker and his family as members of the community, and if we also mean the provision of sanitary, wholesome working conditions and a working schedule that does not overtax the worker physically, and mutuality-a give and take relationship. With this as a basis we can go a step farther and see what else can be done to promote better relations between management and the workers.

Jan 9, 1922

By Erwin L. Zodrow

A geological model of the modes of formation of magnetite and its distribution in the Smallwood iron-ore mine, Labrador, Newfoundland, is given, based on observation and geological mapping. This is called the conceptual model. If mathematical expressions plus probabilistic uncertainty are used to represent the conceptual model, then this is termed a mathematical model. The purpose of this paper is to test if there exists a correspondence between the conceptual model and two related mathematical models (called factor analysis). Details of the statistical technique are given. The results of factor analyses in relation to the magnetite formations in the Smallwood mine are discussed. Several practical mine applications are presented. The difficulty of maintaining quality control over ore mined from any deposit naturally depends on geological conditions; these are usually imperfectly known to concerned mining geologists. One geological condition that would greatly facilitate ore predictions is if a relationship between the observed ore particle distribution* and its mode of origin could be demonstrated. Such a casual interrelationship is normally sought through the application of well-defined geochemical principles of primary mineralization in given geological environments. However, the application of conventional tools of geological research, including geochemistry, to areas that have undergone repeated periods of geological deformation and metamorphism subsequent to primary mineralization becomes rather difficult. More important, the interpretation of such research results are nearly impossible on an objective basis. Mineral assemblages may have been reworked and changed due to tectonic influences to the extent that the present-day observable mineralogy and ore-particle distribution can effectively obscure the mode of origin of the ore. Quantitative measurements, based on petrological investigation of mineral assemblages, reflect the sum-total of all geological influences. Which of several influences had the most effect on existing ore particle distribution is difficult to assess, for these influences can neither be measured directly nor quantified by petro-logical logical or geochemical means. The present study is concerned with the magnetite distribution and its modes of origin within the Small- wood mine,' located in the southern extension of the Labrador geosyncline; see Fig. 1. This geosyncline is thought to have undergone at least two periods of geo-tonic tectonic deformation, separated in time, since the fer-rugenous rugenous sediments were deposited." Detailed geological observations and mappings (1 in. to 40 ft) have highlighted subtle, distinctive features of the magnetite distribution in the Smallwood mine: (1) The magnetite is generally concentrated in bands or layers within this ore body; these bands alternate with specularite-rich bands and quartz bands. The banded or layered nature is common in Precambrian iron-ore deposits, and this has been interpreted as a result of changes in depositional environments. (2) The grain size of the magnetite varies; near the contacts between the iron and quartz-carbonate formations, the magnetite occurs as well-crystallized octa-hedra. In areas of intense folding, magnetite is extremely fine grained and concentrated in bands and occurs in association with earthy manganese minerals. (3) Magnetite tends to be more highly concentrated near the geological contacts of the iron and quartz-carbonate formation in the northeast part of this mine, Figs. 2, 3, and 4. (4) Magnetite is also fine grained and tends to higher concentration near and parallel to fold axes; however, in this case, the ore is much softer than given in item 2. (5) Magnetite mineralization decreases along strike and away from the areas of intense folding, i.e., towards the approximate center of the mine, Fig. 3. How can these variations of magnetite be explained on a geological basis? We can postulate a conceptual model that the distribution of magnetite appears to be related to three basic geological influences: (1) geo-tectonics, i.e., concentrations of magnetite near geological contacts of the iron and quartz-carbonate formations, the fine-grained nature of magnetite and its higher concentrations near fold axes, and decrease of magnetite towards the approximate center of the mine; (2) secondary alterations, i.e., variation of grain size of magnetite near the iron and quartz-carbonate contacts, and in areas of intense folding where magnetite occurs together with earthy manganese minerals: (3) original

Jan 1, 1971

By J. P. Murphy, T. E. Leontis

DURING the last few years, the trend in the aircraft and automotive industries has been toward higher and higher operating engine temperatures. This has created considerable interest in the effect of temperature on the properties of alloys. In the magnesium field, it has been recognized for many years that the addition of cerium imparts high strength and good resistance to creep at elevated temperatures. Beck,1 in his treatise on-magnesium, has summarized the work of German investigators. This includes the unpublished data of Menking, showing the increase in strength and hardness of extruded alloys containing 2 to 20 per cent Ce at temperatures from 200 to 300°C. (68° to 572°F.) and the results of Vosskühler, who demonstrated the improved resistance to creep of alloys containing 6 per cent Ce plus 2 per cent Mn and 0.5 per cent Ce plus 2 per cent Mn at 150°C. (302°F.). Wellinger and Keil2 have also reported the creep properties of a forged magnesium-cerium-manganese alloy at 200° and 250°C. (392° and 482°F.). Haughton and Prytherch have determined the tensile properties of various forged magnesium alloys containing cerium, cerium plus manganese, cerium plus calcium, cerium plus nickel, cerium plus nickel plus manganese, and cerium plus cobalt plus manganese at temperatures up to 290°C. (554°F.). Magnesium-cerium alloys have been used in some commercial applications. It is reported that an alloy containing 3 per cent Ce plus 0.5 per cent Mn plus 0.5 per cent Ca is being used on a forged impeller in Great Britain. Two forged parts made from an alloy with a nominal composition of 5 per cent Ce and 2 percent Mn have been found on the German .BMW-801D aircraft engine. These two forgings consist of a supercharger impeller and a rear cam-follower guide. In this country, several types of pistons have been made experimentally in both .the cast and the forged conditions from an alloy containing 6 per cent Ce plus 2 per, cent Mn and in the cast condition from an alloy of magnesium plus 10 per cent Ce. The cast pistons have been tested in various types of internal-combustion engines, with promising results. This paper presents the results of an extensive investigation on the properties of various cerium-containing magnesium alloys in both the cast and the forged conditions. Data are presented to show the beneficial effects of increasing amounts of cerium on the mechanical properties of magnesium at elevated temperatures. The effects of heat-treatment on the properties of these alloys and the attendant changes in the microstructure are discussed. The

Jan 1, 1946

By W. E. Wrather

CURTAILMENT of production was a matter of far more serious concern to the oil industry through 1933 than the search for new supplies of oil. The huge reserves of crude, built up during past years, instead of inspiring a feeling of security, were viewed apprehensively. The status of past laws and court decisions seemed to guarantee to operators the right to produce oil at will, and this entrenched privilege was so widely adhered to that the market was-in a constant state of chaos. The more modern idea of the ownership of oil in place and correlative rights gained headway slowly, since usually there were enough belligerent producers, staunch believers in the old established order, to defeat the efforts of the majority who sought to' introduce order and restraint. State regulatory commissions were unable to cope, with the rebellion among producers with the result that those who abided by proration rulings were penalized, while those who flouted the rulings and produced unrestrainedly were able to make profits on large volumes of flush oil even at low prices. This situation, known in the vernacular as the "hot 'oil" problem, became so acute that the industry was threatened with ruin. The low price for 36c A.P.I. in the Mid-Continent came in April. at 25c per barrel 'but gradually moved upward to the long-hoped for price of $1.00 per barrel in October, after the Federal Government had taken a hand in the matter and effectively allocated production among the oil producing states and materially curbed the "hot oil" runs.

Jan 1, 1934

By Arthur Phillips, C. H. Mathewson

During the past year considerable work dealing with the mechanical properties and microstructure following the anneal under uniform condi-tions of certain types of commercial rolled brass has been done in this laboratory. Since these experiments were conducted with the active cooperation of the Bridgeport Brass Co., involving free use of its product, and have thus furnished information which is characteristic of some of its special mixtures, full publication of the numerical relationships and comparative results encountered does not seem justifiable. Some of the more general features of this work are, however, available and it is our present purpose to use the material in question, along with some results of special tests, in discussing the characteristics of recrystallization as related to the degree of hardening by strain and the ordinary annealing variables. We desire to make acknowledgment of the many courtesies extended by Mr. Charles Ferry, Metallurgist of the Bridgeport Brass Co., and the value of his cooperation, which has greatly stimulated the study of brass in this laboratory. A clear and systematic presentation of the principal relations between temperature and time of anneal, the changing physical properties and microstructure and the degree of previous reduction by cold-rolling, was first made, in the case of rolled brass and copper, by the French engineer, C. Grard,' in 1909, although much fragmentary information of this general character had appeared earlier and the main facts involved were undoubtedly known to many brass specialists through their own private research. From this work, it appears that in the cartridge mixture (67 per cent. copper, 33 per cent. zinc) the properties imparted by cold-working within the limits, 13 to 75 per cent, reduction of area by rolling Original Area — Final Area 0.13 to 0.75), are not affected by anneal- Original Area " ing for a 50-min. period at any temperature below 200°C. At or in the

Jan 1, 1916

By Daniel R. Shawe

Large tabular beryllium deposits in waterlaid rhyolitic tuff at Spor Mountain, Utah, contain the world's largest known resources of beryllium (as bertrandite). The district also has produced fluorspar and uranium. The largest beryllium deposit is about 2.5 miles long, and known deposits contain many million tons of material with at least 0.5 per cent BeO. The beryllium-bearing tuff (Pliocene?) underlies topaz-bearing rhyolite ( Pliocene?) that contains unusually high amounts of beryllium, fluorine, and uranium, and overlies other volcanic rocks (Pliocene? or Micocene?) and marine carbonate and elastic rocks ( Paleozoic). The deposits occur in hydrothermally altered tuff only where it contains abundant carbonate pebbles eroded from the Paleozoic rocks and where the tuff was deposited as thick layers in now-buried paleovalleys. Basin and Range faults, thrust fa ults, and possibly strike-slip faults formed in this part of the Basin and Range province during the late Tertiary, and volcanic rocks were extruded. Beryllium mineralization probably occurred during this episode. Undoubtedly the beryllium deposits are related genetically to the topaz-bearing rhyolite, but the details of their genesis are not certain and probably are complex. Beryllium deposits are close to major faults, and locally the beryllium is concentrated at faults, indicating fault control of mineralization. Some elements in the deposits, such as lithium, however, are evenly distributed in certain Luff beds and perhaps were introduced prior to faulting. Still other elements, such as manganese and lead, were concentrated in the beryllium deposits and subsequently were leached along late fractures, indicating a period of metal redistribution following mineralization.

Jan 1, 1968

By M. A. Scheil

Austenitic stainless alloys are susceptible to stress-corrosion cracking which may occur under certain corrosion environments irrespective of their susceptibility to intergranular corrosion. Test samples are described for investigating stress-corrosion susceptibility of alloys for industrial equipment. A laboratory test using a solution of magnesium chloride boiling at 309 F. was found to produce transgranular cracks in several alloys investigated and in types 347 and 316 stainless steel tubing a residual stress of the order of 10,000 psi. was observed to initiate cracking. The susceptibility to stress-corrosion cracking as judged by the boiling magnesium chloride test indicates that alloys may be selected which will withstand a high stress in service Stressed specimens of stainless alloys included in a corrosion testing program will aid in determining the acceptibility of these fabricated alloys, when stressed, to the service conditions.

Jan 1, 1945

By Robert Mehl

IN examining the progress of metallurgical science, the critic must remember that most of our present knowledge of metals and alloys has been accumulated through the needs of industry and commerce rather than through the desire and efforts of a large body of scientists interested primarily in developing a science of metals. The progress of metallurgy, scientifically speaking, has been irregular, and little given to the exhaus-tive exploitation of important scientific fields. The experienced engineer now recognizes the need for the development of the basic science upon which his engineering rests. In addition to the increase in knowledge which results from the normal requirements of industry, a development of the basic science of the behavior of metals and alloys is as desirable in metallurgy as in any other branch of science and engineering. The continued growth of the science of metals-as of every other science-requires studious attention to the principles that underlie the behavior of matter, with the result that knowledge in the several fields of interest should continue to increase. Among the various subjects recognized as important in physical metallurgy few have a wider significance than that of diffusion in solid metals. The phenomena of diffusion are intimately related to many basic problems of the metallic state, but in addition to this, the process of diffu-sion is of first importance practically. The formation of alloys by the annealing of mixed powders, first practiced by Faraday and Stodart81 in 1820 and in more recent years investigated by Masing187,189 and others, has led to the development of special alloys like Carboloy, Vascoloy-Ramet, Genelite, Elcon68, and has recently been applied to the production of noble-metal alloys for electrical contacts"'.

Jan 1, 1936

By Lyon F. Terry

SPEED-UP of production of crude oil and its products, accompanied by rising prices and the organization of the industry on a war basis, featured the economic aspects of petroleum in 1941. Early in the year American tankers were urgently requested by the British to replace losses and offset slower transit under convoy. Some forty American owned tankers were first assigned to Britain and an additional forty-odd ships were transferred during the summer. This threatened to reduce our transportation facilities from Gulf ports to the Eastern seaboard below requirements, especially should sinkings have increased and the British needed more ships. Co-ordinator Ickes began preparations for restricting gasoline consumption in the Eastern district and plans were formulated for the construction of an emergency trunk pipe line from Texas to New York and Philadelphia refining centers, and for a gigantic tanker-building program. Sales of new oil-heating units in the East practically ceased. The companies were urged to transport as much oil as possible by tank car and by October 140,000 barrels of oil per day were reaching the East Coast district by rail, sufficient to meet 8 per cent of total requirements. But British sinkings from July through October decreased 63 per cent compared with the four months ended June 30, Britain began the return of tankers, the construction plans were dropped, and the threatened shortage was thus averted.

Jan 1, 1942

By AIME AIME

TRANSFER to the Bureau of Mines of the responsibility for conservation and production of helium, and announcement that a proposal has been made to the President for commercial operation of the Los Angeles has attracted new attention to the helium program of the Government. The matter is one in which mining engineers, and the mining industry in general, have a peculiar interest. Helium is a byproduct of the petroleum and natural gas industry. It is found in certain of the natural gases which have themselves been discovered, in the main, in the search for oil. If it is to be produced on a large scale, the conservation and development of the fields will necessarily be done by the men of the oil and gas industry. There is no known or expected source of supply of quantities of commercial importance save in the natural gas fields. Not all gas wells supply helium and none of them supply it in important percentages. If it were necessary to prospect a field, develop it, lay pipe lines and build production plants for the helium alone, the cost would be prohibitive. On that basis helium would necessarily be restricted to essential war uses, where cost is subordinate to need. As a byproduct of the natural gas in certain, at least, of the fields in the United States there is distinct reason for anticipating that it may be produced in amounts and at a cost that will permit its regular use in commercial airships.

Jan 1, 1925

By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd's Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco's experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco's research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco's strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco's financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960's very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo's Project Development Study was completed. in January 1972. Based upon Toyo's cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo's cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco's planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950's and 1960's. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985

By Simon D. Strauss

The world appetite for minerals in the, third quarter of this century grew at a higher rate than had been anticipated. To illustrate, consider the experience of four, commodities. Excluding the Communist bloc, sometimes referred to as the centrally planned economies, demand for aluminum increased at a compound rate of 8.6% between 1950 and 1975,; copper rose by 4.4%; iron ore by 5.5%; and tin, the laggard in the group, by 2%. Except for tin, the figures are substantially greater than growth rates anticipated in 1950 in the Paley Commission report and other studies. The growth rate was not evenly distributed in geographical areas. Professor Wilfred Malenbaum of the University of Pennsylvania did an interesting study breaking these figures down as among three principal sources of demand -- the United States, other industrialized nations (which he referred to as the "rich lands"), and the developing world (which he referred to as the "poor lands").

Jan 1, 1982