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By W. J. Taylor, H. J. Mutz, A. F. Brock

THE International Kickel Co. of Canada Ltd. operates five underground mines and an open pit. Four of the mines, the Frood-Stobie, Creighton, Murray, and Garson, are on the south range of the Sudbury Basin, map above, within a radius of 10 miles of the city of Sudbury, Ontario. The fifth mine, the Levack, is on the north range of the Sudbury Basin, 30 miles to the northwest of the city. The open pit is operating on surface ores of the Frood-Stobie orebody. Two pits were opened at the Frood-Stobie mine; the Frood section was started in 1938 and the Stobie section in 1942. To meet the heavy demand for nickel during World War 11, open-pit production was accelerated until it constituted over 40 pct of Inco's total tonnage. As a consequence open-pit ore was depleted considerably alhead of schedule; the Stobie pit was completed in the summer of 1951, and it is expected that mining at the Frood pit will be completed in 1953. The major program launched 10 years ago to develop additional underground production as a replacement of open-pit tonnage thus had to be greatly speeded up. This conversion to all-underground mining will be completed within the next two years, and the underground mines will then have an annual hoisting capacity of 13,000,000 tons. One of the new mines in the underground expansion program, the Murray, was brought into production in 1950. Ore production from the new Stobie section of the Frood-Stobie mine was commenced on a limited scale in 1951 and will be increased as the program progresses. Delivery of ore to the new Creighton mill was started in the summer of 1951 from the caving project launched at Creighton mine. When mining was started in the Sudbury district 65 years ago the ore deposits were opened on a small scale and mining methods conformed to a general pattern of small open cast pits, followed by open stopes as mining was extended below the pits. The open stoping methods used were heading-and-bench and shrinkage. In certain cases a type of cut-and-fill mining was used with drywall tramways and dry-wall chutes in the fill. As the mines were deepened,

Jan 1, 1954

By E. S. Leaver

The authors of the paper above mentioned have sent the following statement to correct erroneous com-ments and implications in their article with the re-quest that it be published: "In the above mentioned article the reference to Bendelari jigs is used in the generic sense as applying to the mechanically driven diaphragm jigs. No attempt was made to dif-ferentiate between the various machines as installed on different dredges. The Natomas Company use a jig of their own manufacture. The Yuba Company installed the Placer jig as manufactured by the Pan American Engineer-ing Company. "The Pan American Engineering Company also manufactures the Crangle jig under their own name. This is a diaphragm jig in which the pulsations are produced by intermittent flow of water through the patent Crangle Valve and it has no driving mechanism."

Jan 1, 1937

There were present eight Directors, the Secretary and the Assistant Secretary of the Institute, and seventeen guests. Messrs. John V. N. Dorr and George D. Barron were appointed members of the Founder Societies Finance Committee on Joint Activities. A request from the New York members of seventeen societies that the Institute send a delegate to Engineering Congress for the purpose of formulating a code for professional conduct was referred to the Engineering Council. There were elected thirty-four members, twenty associates, and thirty-one junior associates. The status of one member was changed from associate to member; and of one junior associate to associate:

Jan 7, 1919

By E. T. Turkdogan

The activity of sulfur was determined as a function of composition of ferrous sulfide by equilibrating with hydrogen sulfide-hydrogen gas mixtures at 670° , 800°, and 900". The present results supplement the available data over the composition range from 36.6 to 39.5 pct S. The X-ray lattice spacing measurements made are in accord with the available data and indicate that the limiting composition FeSl.008 may be taken for the iron-iron sulfide equilibrium. The growth rate of ferrous sulfide on iron was measured by reacting iron strips or blocks in hydrogen sulfide-hydrogen gas mixtures. Owing to the slow approach to equilibrium between the gas phase and the surface of the sulfide layer, The sulfidation experiments were carried out for several days. It is shown that the growth rate ullimately proceeds in accordance wilh the parabolic rate law. From the parabolic rate constants and the thermodynamic data on iron sulfide the self-difiusivity and chemical diffusivity of iron in ferrous bisulfide are evalualed. The self-diffusivity of iron thus derived zs found to increase with increasing sulfur content. THE ferrous sulfide known as "pyrrhotite" is a non-stoichiometric phase having a wide composition range from about 50 to about 58 or 60 at. pct, depending on the sulfur activity. RosenQvistl studied the thermodynamics of this phase over wide ranges of temperature and composition. Hauffe and Rahmel' and Meussner and ~irchenall~ studied the parabolic rate of sulfidation of iron in sulfur vapor. By using markers, these investigators showed that the iron cations were the predominant diffusing species in iron sulfide. This is confirmed decisively by the self-diffusivity measurements of condit4 who showed that the self-diffusivity of sulfur in ferrous sulfide is several orders of magnitude lower than the self-diffusivity of iron. Although much has been learned from these studies about the Fe-S system, further research on this subject was considered desirable for better understanding of the physical chemistry of iron sulfide. This work was confined to the study of the kinetics of sulfidation of iron in hydrogen sulfide-hydrogen gas mixtures. The results of this study are given in two consecutive parts. Part I, the present paper, is on the parabolic rate of sulfidation of iron and the diffusivity of iron in ferrous sulfide. The second paper, Part 11, is on the kinetics of the surface reaction between hydrogen sulfide and ferrous sulfide. EXPERIMENTAL Three types of experiments were carried out: i) equilibration of ferrous sulfide with gas of known E. T. TURKDOGAN, member AIME, is Manager,Chemical Metallurgy Division, Edgar C. Bain Laboratory for Fundamental Research, U. S. Steel Corp., Research Center, Monroeville, Pa. Manuscript submitted March 6. 1968. ISD sulfur potential; ii) X-ray studies of ferrous sulfide; and iii) measurements of the parabolic rate of sulfidation of iron. Equilibrium Studies. About 1 g of iron powder or foil. contained in a small recrystallized alumina crucible ind suspended from a calibrated silica spring, was reacted with a hydrogen sulfide-hydrogen mixture of known ratio until no further change in weight was observed. %hen the gas composition was changed and the new state of equilibrium was established after several hours of reaction time. The composition of the sulfide was obtained from the initial weight of the sample and the weight after equilibration. X-Ray Studies. The lattice parameters of some of the equilibrated samples were determined using the General Electric XRD-5 diffractometer with a cobalt tube (no filter) set at 40 kv apd 10 ma; the CoK, radiation was taken as 1.79020A. Observed 220 and 311 diffraction peaks of silicon served as an internal comparison standard to correct for possible misalignment of the goniometer. The lattice parameters of the sulfide phase were calculated from the corrected Bragg angles of the 110 and 102 peaks. Rate Studies. In the initial experiments attempts were made to measure the parabolic rate of sulfidation by measuring the gain in weight of a thin iron strip, -0.05 cm thick, suspended from a silica spring in the reacting atmosphere. The preliminary experiments showed that this technique was not reliable for the measurement of the parabolic growth rate of the iron sulfide layer. In the subsequent experiments the data on growth rate were obtained by measuring, on a microscope stage, change in the thickness of the sample after reaction for a specified time in a hydrogen sulfide-hydrogen mixture of known sulfur activity. For each reaction time a new sample was used. Precision-machined iron blocks, 0.5 by 2 by 5 cu cm, were de-greased and annealed in hydrogen for several hours prior to the sulfidation rate measurements. The experiments were carried out at 670°, 800°, and 900°C in gas mixtures having the ratios, and 1.0 for periods of times from a few hours up to 8 days. Apparatus and Materials. A vertical globar tube furnace with a 3-in.-long uniform temperature zone was used. The glass tube fittings were fused on the zircon reaction tube, 1.5 in. diam. The temperature was measured with a Pt-10 pct Rh/Pt thermocouple placed in the hot zone of the furnace inside the reaction tube (an alumina thermocouple sheath was used). A separate thermocouple was used for the temperature controller which maintained the furnace temperature constant within about 2°C. Anhydrous liquid hydrogen sulfide and oxygen-free dry hydrogen from gas tanks were used in preparing the gas mixtures by the constant head capillary flow-meters. In all cases volume flow rate was 1000 cu cm per min at stp, corresponding to a linear velocity of about 6 cm per sec at 800°C; under these conditions

Jan 1, 1969

Welfare endeavor in connection with both the metal and the coal mines of Utah has shown gratifying progress during recent years and both the operators and their employees are deserving of much credit for the efforts put forth to better living, working, educational and receational conditions in most of the mining camps of the state. In the older metal mining camps of Utah, where the towns are incorporated and independent of the mining properties operating in the vicinity, less opportunity is presented for the companies to exercise efforts looking towards improved welfare conditions than is the case of camps located on company ground and under the full control of operators.

Jan 1, 1925

By Richard D. Hagni

Abstract-Although the ore microscopist routinely examines polished sections to determine the mineralogy and texture of ores, his importance to the solution of problems peripheral to geology is not always fully realized. The techniques which he uses can be applied with little modification to the solution of a wide variety of beneficiation problem. By extending his studies beyond those normally considered to be of interest to the geologist, he can include examinations of polished sections of selected mill products. This is a logical extension, because the minerals and textures in the polished sections of ores are the same as those in mill Products. The mill dressing engineer should be more aware of the types of beneficiation problems that can be solved by the ore microscopist and what the ore microscopist can do for him. A greater degree of cooperation between the ore microscopist and the mill dressing engineer can be of significant mutual benefit. Ore microscopy holds an advantage over chemical analysis, because the interrelations and combinations of the mineral constituents of an ore or mil1 product can be visually determined. This advantage provides solutions to many beneficiation problems. Locking is a type of beneficiation problem that is particularly amenable to ore microscopy. The percentage, type, and distribution of locked particles can be readily determined with the aid of an ore microscope and an estimate made of the extent of additional grinding required for liberation. The extent of intimately locked types, which no reasonable amount of grinding will liberate, can also be evaluated. Mineral coating conditions, free particles of a deleterious mineral, and free particles of a valuable mineral held in floculated clusters of gangue are other features that can readily be observed. In some instances, visual examination may show that the problem is not one of locking. Photomicrographs illustrate the variety of beneficiation problems for which the ore microscope is applicable. These problems and their resolution demonstrate the importance of the instrument and show the value of close coordination between the mill dressing engineer and the ore microscopist.

Jan 10, 1978

By A. G. Paithankar, G. B. Misra

Although certain physical mechanical properties of rocks have been claimed to give an estimate of penetration rate in percussive drilling, the authors' work shows that the correlation of penetration rate with individual rock properties is Poor. The authors have developed a good correlation between penetration rate and a set of rock properties but the relation is complex. Energy per unit volume has been used as a measure of penetration rate in percussive drilling by Hustrulid and Fairhurst; however, their test setup is large wing a full size drill bit. The authors determined the minimum energy for unit volume Ev min for any rock at the optimum index angle in a simple laboratory drop tester wing a sharp microbit with a tip angle of ll0°. This Ev min has been found to correlate well with penetration rate obtained in controlled laboratory drilling in different rocks for different stages of bit wear. A comprehensive relation has been developed between penetration rate and Ev min.

Jan 1, 1981

By E. Peters

As in other fields of Extractive Metallurgy, Hydrometallurgy is preoccupied with separation processes and with oxidation-reduction processes. The physical chemistry of each type of process can be described in terms of thermodynamic equilibria and in terms of reaction kinetics. Reaction kinetics are much more important at the low temperatures limiting hydrometallurgical processes than in com- parable pyrometallurgical operations and the number of cases in which the kinetics can be described by simple liquid-phase mass-transfer models are sharply limited. It is convenient to subdivide the applicable rate phenomena into processes in which (a) interface reactions control the rate,(b) mass transfer processes control the rate, (c) solid state process affect the rate, (d) thermodynamically predicted phase changes or molecular reactions fail to take place, (d) metastable substances or supersaturated phases persist, and (elchomogeneous reactions in solution affect the chemistry and the kinetics. Examples are drawn from the unit steps of leaching, cementation, hydrogen reduction, and electrowinning.

Jan 1, 1973

By R. W. Raymond

AT the Pittsburg meeting of the Institute, in March, 1910, the death of Mr. Metcalf was announced, and Col. H. P. Bope, of Pittsburg, delivered in memory of him a brief but eloquent address, which, though expressing the sorrow of Mr. Metcalf's friends, and, in general terms,. the debt of gratitude which his country and his profession owed to him, was not intended to be a complete survey of his life and work. With Colonel Bope's permission, and with the aid of some of the statements in his address, I substitute for it, in our Transactions, this more detailed, yet still inadequate memorial. As Colonel Bope justly remarked, the men who could do justice to this theme-such men, as Jones, Chalfant, Bennett, Oliver, and Park-passed away before Metcalf, leaving him almost the last of the generation of great steel-makers who made Pittsburg the Sheffield of America, and who discharged a double function, as the rear-guard of the old metallurgical practice and the van-guard of the new. I knew many of them; would that I were better qualified to celebrate their achievements. William Metcalf was born Sept. 3, 1838, at Pittsburg, Pa., where his father, Orlando Metcalf, was an eminent member of the bar. At the age, of sixteen, he entered the Rensselaer Polytechnic Institute, at Troy, N. Y., from which he was graduated in June, 1858. Returning to his native city, he became an assistant engineer in the Fort Pitt Foundry, of which. he was made Superintendent in 1859. This famous establishment produced the largest castings and heaviest machinery then known in the United States;-and Mr. Metcalf's intense, intelligent and incessant study of his business prepared him as a manufacturer for a patriotic service to his country more valuable than, as a soldier, he could have rendered in the field. The call came in 1862, when the government needed, above all things, a supply of field, naval and siege artillery. The

Apr 1, 1911

PRESIDENT OF THE COUNCIL. D. W. BRUNTON DENVER, COLO. (Term expires February, 1910 ) VICE-PRESIDENTS OF THE COUNCIL. J. PARKE CHANNING NEW YORK, N. Y. FREDERICK W. DENTON PAINESDALE, MICH. JOHN B. FARISH NEW YORK, N. Y. (Term expires February, 1910 ) W. C. RALSTON SAN FRANCISCO, CAL. W. L. SAUNDERS NEW YORK, N. Y. H. V. WINCHELL MINNEAPOLIS, MINK. (Term expires February, 1911 )

Jan 1, 1910

TECHNICAL COMMITTEES Iron and Steel JOSEPH W. RICHARDS, Chairman. J. E. JOHNSON. Js., Vice-Chairman. ARTHUR S. CALLEN, Secretary, 453 Chestnut St., So. Bethlehem, Pa. SUB-COMMITTEES IRON ORE DWIGHT E. WOODBRIDGE. Chairman. ERNEST F. BURCHARD, WILLIAM KELLY. CHARLES F. RAND, FELIX A. VOGEL. BLAST FURNACES H. A. BRASSERT. Chairman. WILLIAM H. BLAUVELT, AMBROSE N. DIEHL, JAMES GAYLEY, RICHARD V. McKAY.

Jan 10, 1915

BRANCH COUNCILS Mining Branch E R Price, Chairman (Coal) Howard A Meyerhoff (Industrial Minerals) J V Beall, Secretary Richard M Foose (Industrial Minerals) Carroll F Hardy (Coal) Frank A Hardlaw (Mining, Geology, and Geophysics) S J Swainson (Minerals Beneficiation) Philip J Shenon (Mining, Geology, and Geophysics) Grover J Holt (Minerals Beneficiation) A C Callen (Mineral Industry Education) C H. Behre, Jr. (Mineral Economics)

Jan 1, 1952

By Glenn A. Marsh, George Bernard

It is often assumed that aerated oil field brines which are to be injected underground contain dissolved oxygen in amounts which will cause appreciable corrosion. Through the use of a new portable dissolved oxygen meter, accurate determinations were made at three brine conditioning plants. At two older plants, dissolved oxygen concentration in the final treated brine was found to he almost zero In spite of aeration during the conditioning process. At a new plant, dissolved oxygen was initially present but disappeared soon after the brine was "inoculated" with oxygen-free brine from one of the other plants. Corrosion tests at the two older plants have substantiated predictions that the brines would lint be corrosive. These results show that mechanical deaeration may not always be required in brine treating plants. INTRODUCTION The present work was undertaken to add to our knowledge of aeration and deaeration of oil field brines in brine conditioning plants. It is commonly assumed that brines which are exposed to the air soon become more or less saturated with dissolved oxygen. Since oxygen-containing brines are known to be corrosive, precautions are often taken to keep air out of brine through the use of closed systems or mechanical deaeration. The study of oxygen in brine has been seriously hampered in the past because of the lack of a suitable analytical tool. The standard Winkler method for the determination of dis-solved oxygen is satisfactory for use in fresh water, but not in many oil field brines. Corrections have to be made for a number of reducing substances such as ferrous iron and hydrogen sulfide which are commonly present in natural brines. Very often the correction factors are much greater in magnitude than the amounts of oxygen which are to be determined, and consequently erroneous results are obtained. Also. erratic Winkler data are obtained when appreciable concentrations of calcium and magnesium salts are present. The first step in carrying out a systematic study involved designing a portable dissolved oxygen apparatus which would operate in natural brines. Subsequently, this apparatus was used in three brine conditioning plants. Dissolved oxygen data obtained here, and certain corrosion rate data, illustrate the interesting behavior of oxygen in these oil field brines. APPARATUS A portable dissolved oxygen meter described in detail elsewhere,' was developed specifically for use with oil field brines. It is a polarographic apparatus employing a small rotating platinum electrode (cathode) and calomel reference electrode (anode). A potential of 0.7 volts is applied across the electrodes while they are immersed in the brine to be tested. 4References given at end of paper.

Jan 1, 1952

PRESIDENT W E WRATHER Washington, D C PAST PRESIDENTS Louis S CATES, New York, N Y CLYDE WILLIAMS, Columbus, Ohio VICE PRESIDENTS ' HOLCOMBE J BROWN,' Boston, Mass ROBERT W THOMAS, Ray, Ariz RLE V DAVELER, New York, N Y C HARRY BENEDICT Lake Linden, Mich DONALD H MCLAUCHLIN, San Fiancisco, Calif VICE PRESIDENT AND TREASURER ANDREW FLETCHER New York, N Y

Jan 1, 1952

Donald H, McLaughlin San Francisco, Calif PAST PRESIDENTS W E Wrather, Washington, D C L E Young, Pittsburgh, Pa VICE-PRESIDENTS C Harry Benedict, Lake Linden, Mich A B Kinzel, New York, N Y Philip Kraft, New York, N Y C V Millikan, Tulsa, Okla RoRobert W Thomas, Boy, Ariz VICE-PRESIDENT AND TREASURER Andrew Fletcher, New York, N Y

Jan 1, 1952

PRESIDENT OF THE COUNCIL. D. W. BRUNTON DENVER, COLO. (Term expires February, 1911.) VICE-PRESIDENTS OF THE COUNCIL. W. C. RALSTON SAN FRANCISCO, CAL. W. L. SAUNDERS NEW YORK, N. Y. H. V. WINCHELL ST. PAUL, MINN.¬ (Term expires February, 1911.) BENJAMIN B. LAWRENCE NEW YORK, N. Y. JOSEPH W. RICHARDS SOUTH BETHLEHEM, PA. ALBERT SAUVEUR CAMBRIDGE, MASS. (Term expires February, 1912.)

Jan 1, 1917

By T. E. Scott, R. P. Zerwekh

The charactevistics of the deformatiotz of fcc thorium were examined between 78 and 473 K. Activation energy, actiuation volume, and the temperature dependence of the flow stress were determined and conlpared uith several theories for the rate-controlling mechnnistn of the tempemture-dependent component of the flou~ stress. It was established that the Cottrell-Stokes law does not hold, even approximately, for thorium. Through consideration of the above factors and other parameters, it was concluded that the vandom solute barrier theory proposed by Friedel demonstrates the best agreement with experimental observations of the deformation of thorium below ambient temperature. THORIUM, the first metal in the actinide series of rare-earth elements, is interesting and important from two points of view. In the more practical vein, it is a potential reactor fuel. As such, it is important to know its properties. Of specific interest here are the mechanical properties of thorium. Second, no detailed information concerning the deformation characteristics of the actinide elements has been gathered to date. In view of the interesting physical and chemical properties of these metals, their mechanical behavior might reveal characteristics which could improve our understanding of the mechanisms controlling deformation of the more common metals. For example, it has been shown1 that thorium exhibits a yield point which is greatly enhanced by interstitial solute elements such as carbon. This is not a normal occurrence in fcc metals. The goal of this investigation, therefore, was to characterize the deformation of polycrystalline thorium. MATERIAL AND PROCEDURES Thorium, made by the magnesium intermediate alloy process described by Peterson et al.,2 was rolled and swaged to 0.065-in.-diam wire. The metal analysis is given in Table I. After preparation, the oxygen and nitrogen contents had risen to 308 and 60 ppm, respectively. The 0.065-in.-diam wires were cut into 2-in. lengths and annealed in a vacuum of lo-' Torr at 750°C for 1 hr, producing a grain size of 2735 grains per sq mm. The ends of the 2-in. sections were masked off so that a 1-in. gage length could be electropolished. Specimens were polished at 35 v in a solution of 6 pct perchloric acid in methanol which was maintained at 0°C . The gage diameters after polishing were about 0.0625 in. The tests were run on a screw-driven tensile machine at a constant crosshead speed corresponding to a strain rate of 0.005 min-'. The strain rate was changed rapidly after each 0.01-in. extension between 0.005 min-' and one of three higher strain rates which were selected in order to achieve strain-rate ratios of 5, 10, and 20. Tests were run at several temperatures from 78" to 473°K; most were tested at 423", 300°, 215", and 78°K. EXPERIMENTAL RESULTS Flow Stress vs Strain and Temperature. Typical true stress-true strain curves for thorium are shown in Fig. 1 for several temperatures over the range 473" to 78°K. The curves for 78", 215", 300") and 423°K were obtained from strain-rate change tests using the lower (0.005 min-') or base strain-rate values of stress. Additional tests, using the same base strain rate at different strain-rate ratios, gave curves which virtually superposed on those shown, indicating that strain-rate changes did not materially influence the work-hardening characteristics at the base strain rate. The curves for 273") 373") and 473°K were standard tensile tests at 0.005 min-'. The behavior of the flow stress with temperature is

Jan 1, 1968

By R. E. Head

Under existing economic conditions, the treatment of gold ores occupies an outstanding position in metallurgical activity. The increased price of gold has automatically brought about a reclassification of old dumps and low-grade orebodies, and many that formerly were considered valueless are now being vigorously investigated and worked. This situation has developed problems that have taxed the ingenuity and ability of metallurgists to the utmost. Some gold ores give a high extraction of gold by standardized methods of treatment; other ores of apparently similar character yield but a relatively small percentage of their gold when treated by the same processes. Surface Contamination The experience gained by microscopic study of numerous gold ores and tailings has shown that there are pronounced differences in the physical characteristics of the minerals composing them, more especially of the gold. Repeated studies of tailings from flotation and cyanidation of gold ores has established the fact that surface contaminations on gold particles are often directly responsible for high gold losses; comparison of gold particles isolated from flotation concentrates and the resulting tailings have showed that the clean gold has been recovered and the tarnished or contaminated gold invariably lost in the tailing. Obviously, it is not possible to make such a comparison of gold ores treated by cyanidation, as the clean gold has been taken into solution; but when the gold found in cyanide tailing has a tarnished or coated surface, one may infer, with a reasonable degree of certainty, that the clean gold has been extracted. This premise is supported by experimental evidence obtained by isolating particles of tarnished gold and exposing them to cyanide solution in small parting cups. In one such experiment, tarnished gold particles picked from a cyanide tailing showed but slight evidence 01 dissolving at the end of 27 days. In this test, a cyanide solution of 1.6 11). per ton was used and the leach solution was decanted arid renewed every

Jan 1, 1939

By R. E. Head

Under existing economic conditions, the treatment of gold ores occupies an outstanding position in metallurgical activity. The increased price of gold has automatically brought about a reclassification of old dumps and low-grade orebodies, and many that formerly were considered valueless are now being vigorously investigated and worked. This situation has developed problems that have taxed the ingenuity and ability of metallurgists to the utmost. Some gold ores give a high extraction of gold by standardized methods of treatment; other ores of apparently similar character yield but a relatively small percentage of their gold when treated by the same processes. Surface Contamination The experience gained by microscopic study of numerous gold ores and tailings has shown that there are pronounced differences in the physical characteristics of the minerals composing them, more especially of the gold. Repeated studies of tailings from flotation and cyanidation of gold ores has established the fact that surface contaminations on gold particles are often directly responsible for high gold losses; comparison of gold particles isolated from flotation concentrates and the resulting tailings have showed that the clean gold has been recovered and the tarnished or contaminated gold invariably lost in the tailing. Obviously, it is not possible to make such a comparison of gold ores treated by cyanidation, as the clean gold has been taken into solution; but when the gold found in cyanide tailing has a tarnished or coated surface, one may infer, with a reasonable degree of certainty, that the clean gold has been extracted. This premise is supported by experimental evidence obtained by isolating particles of tarnished gold and exposing them to cyanide solution in small parting cups. In one such experiment, tarnished gold particles picked from a cyanide tailing showed but slight evidence 01 dissolving at the end of 27 days. In this test, a cyanide solution of 1.6 11). per ton was used and the leach solution was decanted arid renewed every

Jan 1, 1939

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985