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By Ian MacGregor

As I drove in from the airport on Sunday somebody said 'On the right you will see Duntroon, which is the military training school of Australia.' So I asked the driver, where did they get that name? 'Oh,' he said, 'from some people who built a house there. That was it's name- Duntroon.' It strikes a note with me because, that's the name of a 12th century castle on the west coast of Scotland where I spend what leisure hours I have and, therefore, it establishes the long connection between Australia and my native land. There is also a story I should tell you about the oil industry and its upsurge in Scotland recently which has resulted in great prosperity. And in Edinburgh, the walls of the banks are bulging-because of the incursion of foreign exchange and other resources. Charlotte Square, as some of you know, is the centre of the Scottish financial world and at one of the corners of Charlotte Square, where ho streets intersect, there are three stores-three emporia on the ground floor. Two of them at opposite corners are banks: The Royal Bank of Scotland, and not to be beaten by that, The Bank of Scotland. But the third building is occupied, or was occupied, by a furniture store over many years-very high-grade, high quality furniture that the elite of the Edinburgh society always supported. And suddenly, the store was cleared out and in came a bunch of carpenters and other people busily engaged in rebuilding the store, and finally the new tenants arrived on the scene.

Jan 1, 1978

By R. W. Raymond

The immense commercial value of the Gayley dry-blast process has been established beyond controversy. The testimony of practical blast-furnace managers, on both sides of the Atlantic, agrees that it reduces the cost of pig-iron about $1 per ton; but from the same testimony it appears that this direct economy does not by any means cover its commercial advantages—in fact, that under conditions frequently encountered in practice, it presents other benefits of even greater immediate financial importance. To this point I shall recur in a later part of the present paper. The history of the reception given to this invention, especially on the other side of the Atlantic, has repeated an experience familiar to American engineers. First, the reports of our practice were rejected as theoretically impossible, according to generally accepted notions and formulas; then the figures were reluctantly accepted; and finally the attempt has been made to explain how they could have been obtained. As to the Gayley dry blast, me Americans have been for several years in the last stage of the discussion, and the rest of the professional world is rapidly coming to it. Meanwhile, the remark has been repeatedly made that, whatever Mr. Gayley's process may turn out to be worth, it was not an invention on his part, but simply the energetic and persevering execution of a procedure already proposed by others. This question I wish to discuss first in the present paper. I. What Did Mr. Gayley Invent? Realizing that this is not the place for detailed argument on an issue of patent law, I shall not undertake to quote and criticise the publications prior to Mr. Gayley'a first patents. It may be admitted, without such critical analysis, that the possible advantages of removing moisture from the air forced into an iron blast-furnace were recognized and talked about a hun-

Jan 1, 1909

By Frank Rieber

EVERYONE is familiar with the story of the poor Indian and his leaking tepee. He couldn't repair the leak while it was raining, naturally. And when it wasn't raining, where was the incentive? Even if this traditional Indian was apochryphal, his counterparts are certainly alive today, and operating on a world-wide scale. - A recent issue of the Wall Street Journal, for example, carried an impassioned letter from an old cocoa planter, who wants the world to know why the price of cocoa has gone skyrocketing. For years, he says, British and American interests have bought cocoa at the cheapest possible price and, incidentally, from growers willing to sell at that price. Between them, they didn't put enough money back into the business, either to fight disease in the cocoa groves or to plant new cocoa trees. Until new trees are planted and come into bearing, we will be paying exorbitant prices for our cocoa, and getting less of it.

Jan 1, 1948

Gus C. Henning, New York City: In taking up the discussion of these specifications it is necessary that I give definitions of what I understand under the term " Specifications." There may be three kinds, viz.: (1) Specifications in general; (2) Standard Specifications; (3) Standard International Specifications. 1. A Specification is a document used in commerce which should clearly define the qualities of material to be supplied by the producer, the tests which shall be applied for their determination, and the methods which shall be applied for the purpose of determining that the entire product shall possess such qualities, properties and finish as are desired. The terms used in such document must be applied in accordance with their strict technical definitions as used by those most conversant with them, and the language should be of such accuracy that there can be but a single interpretation of each and every clause. A specification is a part of a contract, and should be legally perfect and accurate. Inaccuracy of definition and dic-

Jan 1, 1903

By H. H. Stout

In the early fall of 1925, the writer was conducting, in the Ledoux and Co. laboratory, New York, experiments directed toward ascertaining the effect on its impurity content when cathode copper was subjected to a current of various gases at an elevated temperature below the melting point. The apparatus consisted of a vertical I-in. dia. silica tube about 12 in. long, heated on the outside. The cathodes were broken to pass 3/8-in. mesh, and a current of various different gases was passed up through a 4-in. long column of these loose cathode particles in the vertical tube furnace. Temperature was maintained to 1500º to 1600ºF. and the gas treatments lasted from 3 to 6 hr. The writer observed that whenever reducing gas (H2 or CO) was used, these cathode particles stuck together at points of contact with each other. The cohesion was so marked and tenacious that an examination was made of the fractured surfaces, when cathode particles were broken from the cluster. Crystal growth was always found to have taken place across the surfaces where separate particles were in contact, but only after all oxides, sulphates, etc., had been completely removed. The idea of a possible new process was then conceived and was disclosed to A. M. Smoot (V. P. Ledoux and Co.) with intent to obtain his views. The first conception as given Smoot was "to gas-clean broken cathodes, put them in an extrusion press, solidify and extrude them at around 1500ºF." Smoot's reaction, after a few moments considera- tion, was, "It looks perfectly all right to me.'' The writer and his assistants, W. H. Osborn and H. H. Stout, Jr., after conferring as to ways and means, decided to go ahead with preliminary laboratory experiments, which, it was thought, would move the new process from the possible to the probable. This program followed a course indicated by three basic considerations: 1. Since brittle cathodes were often unintentionally produced, it seemed probable that the laws controlling this type of deposition could be ascertained. 2. We had already proved the gas-cleaning feature. 3. There remained to prove: whether a sound, homogeneous metal billet could be produced with crystal growth established over the entire surface of each individual particle in the billet; and, if so, what would be the physical properties? Osborn arranged with Columbia University for conducting experiments in its research laboratory to prove or disprove the third item; Columbia assigned C. A. Phillipi, Jr. to assist in the project. A press with a cylinder 2 in. high and of I-in. dia. was used. It was surrouilded and heated by a resistance coil 01 Nichrome wire. Broken tough cathodes were used. Experimental Procedure The first run took place March 18, 1926. The resistance wire gave out when temperature of 1000ºF. was obtained. Pressure was immediately applied: perceptible ram movement stopped when 39,000 lb. per sq. in. on the copper was reached, with a maxi-

Jan 1, 1941

By James E. Little

(Wilkes-Barre Meeting, June, 1911.) OF the several extensive deposits of brown iron-ore in Cuba, including those of Mayari and Moa, that of Mayari was the first to be systematically explored, and was selected as the scene of the first operations in the development of this class of ore. Construction-work, begun in the spring of 1907, involved the building of 16 miles of standard-gauge railroad and two large double-track inclines, the installation of mining-machinery, a nodulizing-plant, power-plant, shops and shipping-facilities, and the dredging of an extensive basin for deep-draught vessels. Unusual weather-conditions delayed the completion of portions of this work so that the entire plant was not in operation until December, 1909. The ore in its natural state contains a very large percentage of water, which increases to some extent with the depth below the surface. Near the surface it is red in color, with somewhat granular structure. The color gradually changes with depth, finally reaching a bright yellow. The consistency also changes towards, the bottom to a clay-like, sticky mass. The relative proportion of red and yellow ore is quite variable; in some places the yellow reaches close to the surface, while in others the red extends almost to the underlying serpentine. Fig. 1 is a map showing the Mayari division of the Spanish-American Iron Co. The ore lies on an irregular plateau about 15 miles long and 5 miles wide at the widest point, entirely covered with pine trees and brush, which grow directly on the ore. The elevation at the northern extremity, which is approached by the railroad, is about 1,700 ft. above sea-level. At the southern end the general elevation is about 2,000 ft. Ore is removed by means of scraper-bucket excavators and steam-shovels, these machines loading into special standard-guage, side-dump steel cars of 100,000 lb. capacity. A short haul

Aug 1, 1911

By James Aston

A PROPER consideration of this subject is not confined to the technical channels of production and metallurgy. It concerns an industry, and should cover economic aspects which are of material importance in any program of development. The discussion may logically be treated under three subdivisions, as follows: (1) manufacture, (2) characteristics related to quality of material; (3) adaptability and exploitation of product. MANUFACTURE OF WROUGHT IRON The manufacture of wrought iron is the most ancient art of the ferrous metal industry. The eighty years or less of existence of processes identified with our modern "Age of Steel" is a relatively brief interval compared with the several thousand years associated with the production of wrought iron by man. From the primitive early methods of production, manufacture for many centuries followed the line of direct reduction. There were developments as experience was gained through the years; but man's needs for a strong, ductile, forgeable product were met by reducing the ore to metallic iron in a single-stage operation. Following the development several centuries ago of what has become our modern blast-furnace operation, manufacture of wrought iron was gradually transformed into a two-stage method of first producing cast iron and then refining this to the desired degree of forgeability; the forerunner in principle of today's scheme of manufacture of steel. The product retained the essential characteristics of highly refined base metal with iron-silicate slag incorporation, which were associated with the material resulting from direct reduction methods. Cort's invention of the puddling process in 1784 is a landmark in wrought-iron manufacture. It consisted essentially in adapting a coal-fired reverberatory furnace to the refining operation; thus lifting the industry out of the slough of

Jan 1, 1935

By R. Van A. Mills

ONE of the most important problems facing the petroleum industry is the profitable recovery of oil that is left underground by the ordinary methods of production. It is true that vast quantities of oil are being recovered from fields previously considered depleted by the pressure restoration method, the most widely applicable -and most successful means of obtaining greater recoveries that has thus far been, developed. But notwithstanding the progress that is being made in the field applica¬tion of this method there is urgent need for a better understanding of the fundamental principles that are involved. To meet this need the Petro¬leum Experiment Station of the U. S. Bureau of Mines at Bartlesville, Okla., during the past two years has conducted a series of intensive laboratory and field investigations. The larger part of the work has been carried on in the laboratory to supply the much needed information upon fundamental principles, information which few if any of the oil companies are in a position to supply for themselves. In all of this work the Bureau is endeavoring to correlate the results of laboratory investigations with those in the field, using the results of one to guide or check the other. This paper is primarily a progress report, briefly outlining the Bureau's methods of study, the laboratory and equipment in use, the preliminary problems that had to be solved in order to attack the major problems at hand, the methods of attacking some of the major problems, and some of the results of the investigations to date.

Jan 1, 1928

By J. W. Eckerd, P. S. Lewis, N. H. Coates

USBM designed, constructed, and operated an 18-in.-diam fluidized-bed combustor for highly caking coals to evaluate the method for possible application to power generation. In initial tests, combustion was carried on successfully, with carbon losses as low as 0.8%+ Coal ash was not satisfactory as a bed material, but mullite proved to be acceptable. Overall heat-transfer coeffients from the bed (-20 t 50 mesh mullite) to a water-cooled tube were about 75 Btuper hr-sq ft. Fluidized-bed combustion is being investigated by the U. S. Bureau of Mines (USBM) as a potentially cheaper method of firing power plant boilers. Lower combustion temperatures in fluidized beds—only 1400" to 1800°F-—should reduce fireside deposition and corrosion and nitrogen oxides production. Fluidized-bed combustion also offers possible advantages in the use of additives to control SO, emissions and amenability to processing of high-ash, high-moisture coals without special preparation. This paper describes development of a fluidized-bed combustor and the results of preliminary tests. Equipment and Procedure Fig. 1 shows the 8-ft-high combustor. A cone-shaped plate perforated by I/8-in.-diam holes supports the fuel bed and admits the fluidizing air; water passing through the 3/4-in. pipe extracts heat from the combustion bed. Fig. 2 is a flow diagram of the system. Coal is fed pneumatically to the base of the fuel bed. Combustion products are passed through two centrifugal separators to remove most of the entrained solids, then to a water

Jan 1, 1971

By H. S. Bell

IT SEEMS unnecessary to dwell upon the advantages of the modern pipe still as compared with the older type of distillation equipment used by oil refiners. The relatively low installation cost, coupled with remarkable operating efficiencies of pipe stills, precludes the consideration of other types except in rare instances where some peculiarity of product or plant may have an influence. The question of the actual heat required to distil petroleum is quite involved. We have extensive data on the latent heats of the various hydrocarbons under different conditions of pressure. We also have information regarding the specific heats of various oils and the effect of temperature thereon. Because of the complexity of petroleum and of each fraction, it seems impossible to theoretically analyze the partial-pressure effect of the great number of hydrocarbons upon one another during distillation. If a distillation curve and percentage analysis of any crude or product are available, it is possible to construct a curve with ordinates representing per cent. distilled and B. t. u. per pound or per gallon, or other desired unit. To do so the crude is split into fractions, of 5 or 10 per cent. The boiling point and gravity of each fraction being determined, it is possible to evaluate the heat required. As each fraction is removed, the residue must be raised to a higher temperature and latent heat supplied for the successive fraction. As the calculations progress, the latent heats decrease while the specific heats increase. Such a curve is illustrated by Fig. 1 for a typical 39.9 B° North Texas crude.

Jan 1, 1928

By MARIUS R. CIMPBELL, Edward W. Parker

DESCRIPTION. ACCORDING to the estimates prepared by the U. S. Geological Survey, the area underlain by workable coal-beds in the United States is 496,776 sq. miles. Of this total area, 480 sq. miles contain the entire anthracite coal-fields of Pennsylvania. The bituminous coal-fields are estimated to be contained in areas aggregating 250,051 sq. miles. The grade of coal between bituminous and lignite, and which is designated by the Geological Survey as " sub-bituminous," is estimated to be contained within areas aggregating 97,636 sq. miles, while the areas containing lignite aggregate 148,609 sq. miles. The coal-fields are divided, for the sake of convenience in classification, into six main provinces, as follows: 1. The Eastern. Province, containing the anthracite coal-fields of Pennsylvania and the bituminous coal-fields of the Appalachian region-namely, those of western Pennsylvania, Ohio, Virginia, West Virginia, Kentucky, Tennessee, Georgia, Alabama, and small outlying areas in North Carolina. 2. The Interior .Province, containing the bituminous coal-producing regions of Michigan, Illinois, Indiana, western Kentucky, Iowa, Kansas, Missouri, Oklahoma, Arkansas, and Texas. 3. The Gulf Province, containing the lignite-areas of Alabama, Mississippi, Louisiana, Arkansas, and Texas. 4. The Northern or Great Plains Province, containing the lignite and sub-bituminous areas of North and South Dakota, eastern Montana, and northeastern Wyoming. 5. The Rocky Mountain Province, containing the bituminous and sub-bituminous areas of western Montana and western Wyoming, Colorado, Utah, and New Mexico. 6. The Pacific Coast Province, containing-the areas of Washington, Oregon, and California.

Apr 1, 1909

By G. F. Loughlin

THE matter of grading Indiana oolitic limestone has been under a cooperative study by the Supervising Architect's office, the U. S. Geological Survey, the Bureau of Standards, and the former Indiana Limestone Quarrymen's Association. As the criteria for grading are necessarily based on a number of geologic and related factors of which those quarrying and using the stone had only imperfect appreciation, the first part of the report is a very elementary account of the origin, structure, and the chemical and physical properties of tie stone, and their relations to durability and utilization, and serves as a foundation for the second part, which discusses grading and pro- poses limits for grades established by the quamymen. Salient features of Part I of a report that has been prepared are the variations in uniformity of stone due to cross bedding, and local uncomformities; the relative prominence of weathering effects on the coarser uneven grained surfaces, and its apparent absence on fine, uniform grained surfaces, although the amount of weathering is the same on each; the attributing "crow feet" (stylolites) to solution under pressure, and the explanation that, whereas the thinnest "crow feet" have no noteworthy effect on weathering quality or strength, the thicker ones are likely to weather out rapidly and to promote splitting; the influence of fracturing on the oxidation of the original gray or "blue" to buff color above the ground water level; the interpretation of chemical analyses and the pointing out that both the gray and buff colors are due mainly to organic

Jan 1, 1929

By I. R. Taylor

Vanadium has recently joined the growing list of mineral commodities being exploited by surface mining methods. Union Carbide Corp. controls several vanadium deposits in central Arkansas near the city of Hot Springs in Garland County and the community of Magnet in Hot Spring County (Fig. 1). Two open pit mines, located approximately five miles southeast of the city of Hot Springs in the Wilson Springs area, have been developed for production during the past two years. Adjacent to the mining area the company has recently completed a 1,600-ton-per-day (tpd) processing plant to treat the Wilson Springs and Magnet Cove ores (Fig. 2). Although this operation constitutes the largest vanadium mining project in the United States, the open pit mines are of moderate size. A number of small to medium-sized surface mines will be developed during the life of the operation. This chapter describes the methods and practices used to bring these recently discovered vanadium deposits into production. PRELIMINARY EXPLORATION The vanadium potential of the deposits near Hot Springs and Magnet Cove was first investigated by Union Carbide Corp. in 1960. These areas have long been of interest for their varied mineral content and were previously explored by government agencies and private interests for titanium, columbium, molybdenum, and uranium. No sustained operations resulted from this early work, although the rutile deposits of Magnet Cove were worked intermittently between 1911 and 1944.l Significant vanadium concentrations were reported in a U.S. Bureau of Mines publication describing the investigation of a titanium prospect

Jan 1, 1969

By R. C. Allen

ABOUT four years ago the writer proposed a revision of the correlation of the Huronian formations in Michigan, and noted the bearing of the question on the correlations of the Huronian rocks in Wisconsin and Minnesota.1 Dr. C. K. Leith opposed this revision and argued for the retention of the correlations of the United States Geological Survey, published in 1911,2 for which he and Dr. Van Hise were mainly responsible. As late as June, 1917, Harder and Johnson, following Leith, thought it "premature to change radically a correlation based on years of careful field work."3 The work of Wolff on the Mesabi and Cuyuna Ranges, of Hotchkiss on the Gogebic Range (unpublished), and of the writer and assistants on the Michigan ranges, together with data developed by exploratory and mining operations, has introduced so many pew facts not recognized in the scheme of the U. S. Geological Survey that the correlations of 1911 must be considered, in some important respects, obsolete. Indeed new data are accumulating so rapidly that any classification, which for the moment may seem best to explain the facts, is almost immediately modified or refined by further observations. The problem of Huronian correlations is difficult, but interesting and important. With the aid of fossils, stratigraphers of the post-Algonkian formations have been able to show that slight disconformities may separate strata of vastly different ages, and that within physically conformable strata may be concealed a hiatus of great magnitude. In the non-fossiliferous Huronian group, minor physical breaks in the strata are

Jan 9, 1919

By Raymond Mancha

The use of blower fans and tubina- for auxiliary face ventilation is a somewhat controversial subject. Most authorities agree upon the advantages of this system over the maintenance of line brattice for dead-end ventilation. They also recognize the system's disadvantages. However, there is considerable disagreement as to the proper relation of the advantages to the disadvantages. It is the purpose of this report to present the opinions of four authorities of diversified occupation and permit the reader to form his own opinions on the subject. ORsErvers Carel Robinson is a mining engineer consultant of wide repute, who has a background of operating experience. Thomas G. Fear is a mine operator whose present position is that of chief engineer for the Hanna Coal Co. at St. Clairsville, Ohio. E. H. Denny is chief of the Coal Mine Inspection Division of the U. S. Bureau of Mines, and is a very able engineer whose past experience well qualifies him to appraise this problem. Cloyd M. Smith, editor of the periodical Mechanization, is a ventilation consultant. For a number of years he was a member of the Mining Department of the University of Illinois and has studied mine ventilation for many years. It is Mr. Robinson,s opinion that closely spaced breakthroughs, although conducive to low gas accumulation past the last open crosscut during the driving of entries, are difficult to maintain and are constant Sources of fugitive air. Jute or canvas brattice is suitable for entry driving with

Jan 1, 1944

By Raymond Mancha

The use of blower fans and tubina- for auxiliary face ventilation is a somewhat controversial subject. Most authorities agree upon the advantages of this system over the maintenance of line brattice for dead-end ventilation. They also recognize the system's disadvantages. However, there is considerable disagreement as to the proper relation of the advantages to the disadvantages. It is the purpose of this report to present the opinions of four authorities of diversified occupation and permit the reader to form his own opinions on the subject. ORsErvers Carel Robinson is a mining engineer consultant of wide repute, who has a background of operating experience. Thomas G. Fear is a mine operator whose present position is that of chief engineer for the Hanna Coal Co. at St. Clairsville, Ohio. E. H. Denny is chief of the Coal Mine Inspection Division of the U. S. Bureau of Mines, and is a very able engineer whose past experience well qualifies him to appraise this problem. Cloyd M. Smith, editor of the periodical Mechanization, is a ventilation consultant. For a number of years he was a member of the Mining Department of the University of Illinois and has studied mine ventilation for many years. It is Mr. Robinson,s opinion that closely spaced breakthroughs, although conducive to low gas accumulation past the last open crosscut during the driving of entries, are difficult to maintain and are constant Sources of fugitive air. Jute or canvas brattice is suitable for entry driving with

Jan 1, 1944

By D. T. Peters, C. R. Cupp

Aging of commercial 18 pct Ni maraging steel and of related binary, ternary, and quaternary alloys has been studied by electrical resistivity, X-ray diffrac-tion, and hardness measurements. The aging process is in three stages: 1) recovery of martensite; 2) two precipitation reactions; 3) formation of nickel- rich austenite. The main objective of this work was to discover the nature of the Co-Mu interaction. Addition of cobalt to the Fe-18 pct Ni-5pct Mo alloy results in acceleration of the pvecipitation reaction by increasing the super-sat~lration 0f molybdenum. The cobalt-containing al- loys show no incubation period for the precipitation reaction, but the alloy without cobalt shows an initial slow reaction. These results are interpreted in terms of precipitation on dislocations. At low aging temperatures, the presence of cobalt leads to the appearance of a second type of precipitate which is a particularly effective hardener. Cobalt was found to retard the formation of austenite. Overaging is a combination of classical overaging and the formation of austenite in the structure. he- activation energy for the precipitation reaction determined from resistivity ,measurements is 42.8 kcal per mole and the growth of the precipitate is found to obey at law at high tenzperatures and a tU3 law at low temperatures. HE mechanism of strengthening of the 18 pct Ni maraging steels has been studied extensively since 1962.'-? The strengthening is due to precipitation hardening of the martensitic matrix. The main precipitate is an inter metallic compound involving molybdenum, but there is disagreement about its identity.

Jan 1, 1967

By Henry G. Petrow, Edward S. Porter

MAJOR occurrences of lignite with significant uranium concentrations have been reported in western parts of the Dakotas, especially in Harding County, S.D., and Billings and Slope counties, N.D. Samples containing as much as 2 pct U3O8 were received at the Winchester Laboratory, but those deposits reportedly of major significance have generally contained 2 to 4 lb of uranium per ton of lignite. Most of the uranium appears to be associated with the carbon in the lignite as a urano-organic complex, although in most instances analysis of inorganic material has shown uranium values. Molybdenum is similarly associated with the carbon, and its concentrations generally parallel the uranium. The noncarboniferous material is mainly composed of gypsum, jarosite, bentonite, sandstone, and miscellaneous carbonates and silicates. The heating value of these lignites has been determined as about 3500 Btu on a dry lignite basis. The ash content of lignite has varied widely, the important samples containing 30 to 60 pct ash on a dry lignite basis. Because of the significant upgrading of uranium values obtained by ashing the lignite, and because recovery of uranium from raw lignite presented formidable processing problems, major emphasis at Winchester has been placed on devising methods to recover uranium from lignite calcines. Proper roasting removes the problem of organic fouling of solutions, reduces the size of the leaching plant for an equivalent uranium throughout, and generally provides equal or better acid leaching efficiency with less acid than can be obtained from the raw lignite.

Jan 9, 1957

By Thomas T. Read

The fact that certain types of ore-deposits have attained their present condition through the action of descending surface waters was, perhaps, first clearly pointed out by Posepny.l The oxidizing effects of such waters were discussed by Pen-rose,2 and many papers dealing with this phase of the subject have subsequently appeared. That secondary enrichment of sulphide ores, however, might be produced by descending surface waters was not clearly understood until after the copper-bearing veins of the Butte district, Mont., had been carefully studied by the geologists of the U. S. Geological Survey, although De Launay3 had suggested that sulphides might be transported from point to point and re-deposited in the zone above the level of ground-water. As a result of the study of the Butte district, two papers by geologists engaged in the work appeared within a short interval. The first by Weed: dealing with the enrichment of veins by later metallic sulphides ; and the second by Emmons; treating of the secondary enrichment of ore-deposits in general. In the latter paper it was pointed out that a typical vein of sulphide ores which has been subjected to the action of descending surface-waters exhibits four zones,—an upper or surface-zone, in which the changes hare been mainly of removal, the products being typically oxides; a second zone of oxide enrichment, in which the less soluble metals brought from above have been precipitated as carbonates or oxides; a third zone of sulphide enrichment,

Jan 1, 1907

By William P. Lohden

INTRODUCTION It is recognized that, for a variety of reasons, some companies in the mineral industry today are by no means cash-rich and, in fact, are reporting a growing proportion of long-term debt in their capital structures. A review of recent balance sheets of small, medium-size, and some larger companies, indicates that a fair number still have substantial positions in cash equivalents such as U.S. government issues and other short-term money market instruments. In part, this paper concerns itself with companies which have sufficient cash and equivalents and/or cash generation to internally finance mining projects or expansions but which, for some reason, choose to borrow funds. Misconceptions which appear to frequently underlie so-called "leveraging" decisions are explored in this paper. Also considered are those circumstances under which any company, including one that is cash-rich, should consider borrowing for a project in an amount beyond what would otherwise be necessary based upon its internal financing ability. I do not 'attempt to cover the raising of equity capital in public markets in this paper. OVERALL RETURN ON TOTAL POOL OF INVESTABLE CASH SHOULD INFLUENCE FINANCING DECISIONS If you approach an individual with an investment which can be financed from his savings, or by borrowing at a rate higher than he is earning on his savings, he will quickly tell you that to pay interest at a rate higher than he is earning would reduce his overall income. Assuming he is not currently considering any additional investment

Jan 1, 1977