Search Documents

By Lucien Eaton

THE accuracy with which detachable bits can be sharpened and gauged by grinding has made possible refinements in design that cannot be attained by forging. This applies particularly to gauging, where accuracy is of the greatest importance. Gauge changes of 1/32 in., and even 1/64 in., are now feasible, whereas 1/16 -in. changes are about the limit in accuracy for forged bits. These small changes in gauge are feasible, however, only with certain fundamental principles of design. Within reasonable limits the depth to which a hole can be drilled is dependent primarily upon the loss in gauge, or diameter, of the bit. In drilling there is always a certain amount of "overdrilling"-the bouncing of the bit in the hole and its rotation wear away the walls-so that the actual diameter of the hole is greater than the diameter of the bit. The amount of this overdrilling depends upon the kind of rock being drilled, and is sometimes sufficient to permit the use of the same diameter of bit for the full depth of the hole. If, for instance, a 1 3/4-in. diameter bit overdrills 1/32 in. in diameter, and loses 1/64 in. in gauge in drilling 2 ft. of hole, the bottom of the hole is still 1/64 in, larger than the original diameter of the bit, and a new 1 ¾ -in. bit can be used to drill the next 2 ft. If, however, the overdrill is less than the loss in gauge, the next bit must be of smaller diameter. The first requisite in reducing loss of gauge in drilling is to have the points and corners of the wings of the bit cut circles of the same diameter, thus producing a reaming surface with continuous bearing on the wall of the hole. The greater the reaming surface, the less the gauge loss that is to be expected. If the reaming surface, however, is too large, it may impede the rotation of the bit through excessive friction. This principle was probably first recognized in the design of the Carr bit (Fig. 1), a bit with a single cutting edge of wide angle, a definite reaming edge, and a large center hole. The same idea was followed in designing the double-taper cross bits, which are now standard almost everywhere.

Jan 1, 1939

By W. J. Taylor

SOME eight years ago I became interested to a considerable extent in one of the well-known deposits of sulphury iron ore in New Jersey, and, as a consequence, soon became interested in the subject of the elimination of the sulphur. On investigation I found that no department of pig-iron manufacture had received less attention than that of roasting or calcining ores for the elimination of sulphur, carbonic acid, water, etc. My first devices to eliminate sulphur were naturally in the lime-kiln line, with solid fuel mixed with the ore, in the same way as common lime is burnt with small coal. While this process will succeed tolerably well for carbonates or calcareous ores, even though they contain sulphur as sulphates, I soon found it would not answer for our magnetites, which are very hard and dense, carrying from 2 to 5 per cent. of sulphur as pyrites, and become very sticky as soon as any attempt is made to roast them at a high heat. Some laboratory experiments developed the fact that the nearer the gaseous current surrounding the hot ore approached in composition pure atmospheric air the more rapidly the sulphur was oxidized, while in an atmosphere composed largely of carbonic oxide, carbonic acid, and nitrogen, it seemed almost impossible to reduce the sulphur more than one-half, which was a confirmation of the well-known fact that just one-half of the sulphur in pyrites volatilizes very easily, and that the trouble is mainly to remove the remainder. It was thus apparent that the atmosphere surrounding the ore was of as much importance as the temperature. This led to the trial of a kiln to heat the ore by conduction through the brick. It was divided into ore-chambers, which were surrounded with flues, through which the products of combustion of gaseous fuel passed without coming in contact with the ore. We did not, however, succeed by this arrangement in getting more than a cherry-red heat, which, of course, was too low to accomplish anything. I had at this point become convinced – 1st. That gaseous fuel only would accomplish the work successfully. 2d. That since a high temperature was required to insure a rapid oxidation of the sulphur, and also to make the ore open and porous,

Jan 1, 1881

By W. J. Taylor

Some eight years ago I became interested to a considerable extent in one of the well-known deposits of sulphury iron ore in New Jersey, and, as a consequence, soon became interested in the subject of the elimination of the sulphur. On investigation I found that no department of pig-iron manufacture had received less attention than that of roasting or calcining ores for the elimination of sulphur, carbonic acid, water, etc. My first devices to eliminate sulphur mere naturally in the limekiln line, with solid fuel mixed with the ore, in the same way = common lime is burnt with small coal. While this process will succeed tolerably well for carbonates or calcareous ores, even though they contain sulphur as sulphates, I soon found it would not answer for our magnetites, which are very hard and dense, carrying from 2 to 5 per cent. of sulphur as pyrites, and become very sticky as soon as any attempt is made to roast them at a high heat. Some laboratory experiments developed the fact that the nearer the gaseous current surrounding the hot ore approached in composition pure atmospheric air the more rapidly the sulphur was oxidized, while in an atmosphere composed largely of carbonic oxide, carbonic acid, and nitrogen, it seemed almost impossible to reduce the sulphur more than one-half, which was a confirmation of the well-known Pact that just one-half of the sulphur in pyrites volatilizes very easily, and that the trouble is mainly to remove the remainder. It was thus apparent that the atmosphere surrounding the ore was of as much importance as the temperature..• This led to the trial of a kiln to heat the ore by conduction through the brick. It was divided into ore-chambers, which were surrounded with flues, through which the products of combustion of gaseoua fuel passed without coming in contact with the ore. We did not, however, succeed by this arrangement in getting more than a cherry-red heat, which, of course, was too low to accomplish anything. I had at this point become convinced— 1st. That gaseous fuel only would accomplish the work successfully. 2d. That since a high temperature was required to insure a rapid oxidation of the sulphur, and also to make the ore open and porous,

Jan 1, 1881

By J. F. Gallie

From the standpoint of exploration and new discoveries, South Arkansas had a discouraging year in 1944. In January there were 73 untested drilling blocks, and 60 additions were made during the year. Of the total, 65 were condemned by dry holes on or adjacent to them, while 5 proved productive. The latter resulted in the discovery of the Salem Church, Calhoun Wilks, and Strong fields, and the extension of the Village field to the southeast. The year ended with 63 untested blocks, 41 of which were scheduled for tests to the Smackover lime, the state's deepest oil-producing formation. Geophysical activity in 1944 totaled 164 crew weeks, of which 110 were seismic, 43 gravity, and 11 radioactive (Fig. I), in contrast with 674 crew weeks reported for 1943, of, which 563 were seismic and in gravity, Five seismograph and two gravity crews were engaged in exploration in South Arkansas during January 1944. but only two seismograph crews were working there at the end of the year. In addition, exploratory core drills were used for a total of 38 weeks during the year. The year's few discoveries, none of which is considered as having added appreciably to state reserves, were the meager results obtained in the drilling of 62 wildcat wells 2000 ft. or deeper. Of this total (a detail of which appears in Table 2), 42 were drilled to the Smack-over lime or below, The average depth of the 62 wells was 5384 ft., as compared with 4992 ft. in the preceding year, while the average depth of the 42 wildcats in the lime was 5913 ft. in 1944. Fig. 2 has been prepared to show all , wells penetrating to the Reynolds oölitic lime. The 1944 dry holes are circled lightly, while discoveries are heavily circled and shown as producers. Smackover lime fields, producing from the Reynolds oolitic lime member, are indicated in black, and the locations of dry wildcat wells drilled prior to 1944 are also shown. Table 3 provides a listing of all Smackover lime wells drilled through the end of 1944. Production for the year was slightly more than in 1943, totaling 29,282,747 bbl., as compared with 27,521,943 bbl. for the preceding year. The increase was 1,760,804 bbl., or 6.4 per cent, bringing production to a peak exceeded only in the 1923 to 1928 period of flush production from the older shallow fields, principally Smackover. The increase was largely attributable to additional development in the Dorcheat-Macedonia, Atlanta, Fouke, Stephens-Smart, Haynesville, and Village fields, little production deriving from 1944 discoveries. These six fields accounted for loo of the 122 field wells drilled during the year. Annual and cumulative production for the producing life of the state are presented graphically in Fig. 3. Fig. 6 has been prepared by the author to show the producing ages and present known productive limits of all fields in South Arkansas. Production data, as usual, are assembled in Table 2, and provide a further breakdown of producing formations in the individual fields.

Jan 1, 1945

By AIME AIME

Council.* PRESIDENT OF THE COUNCIL. JOHN HAYS HAMMOND NEW YORK, N. Y. (Term expires February, 1908.) VICE-PRESIDENTS OF THE COUNCIL. HENRY M. HOWE NEW YORK, N. Y. J. B. GRANT DENVER, COLO. JAMES D. HAGUE NEW YORK, N. Y. (Term expires February, 1908.) SAMUEL B. CHRISTY BERKELEY, CAL. JOHN A. CHURCH NEW YORK; N. Y. New PERSIFOR FRAZER PHILADELPHIA, PA. (Term expires February, 1909.)

Mar 1, 1907

By Kevin B. Doyle

The export markets are of great importance to western Canadian sulfur producers, taking 70% of total products sold. For these marketers, Canadians have always supplied solid sulfur, first in a crushed, bulk form, and for the past several years in a slate form. Both form have proved inadequate for safety and environmental reasons, and new forms and processes have been developed by interested suppliers. The Canadian industry has evaluated these processes and ha made a determination of a desired Product specfication that will greatly enhance the acceptability of future Products from safety, environmental, and customer points of view. The new processed methods and resulting product characteristics are reviewed.

Jan 1, 1980

By A. L. Simpson, J. M. Edwards

The application of the Scintillometer to radioactivrty surveys in boreholes of oil wells has made it possible to determine bed thickness with a high degree of accuracy. This fact, combined with known relation of logging variables, makes thin bed porosity determination practical. With the use of the Scintillometer a method hot been derived whereby the apparent level of radiactivity, as recorded on radiation logs, may be converted to the true level. The true level of radioactivity is that level to which the recording pen would have traveled had the detector remained at a given depth for on infinitely long period of time. This factor is: radioactivity level, Ra, is the apparent radioactivity level, T is the bed thickness, D is drag, and L is the length of the detecting system. This method depends entirely on accurate measurements of bed thickness and drag. A thorough discussion of the concept of time constant and logging speed as related to drag is undertaken. INTRODUCTION Neutron curve interpretation has become one of the accepted methods for porosity determination in oil field practices. A great deal of literature has been published about neutron derived porosities, but this has been concerned with thick beds, or possibly even averaging of a series of thin beds as a single unit. There has been a lack of written information on methods whereby porosity can be evaluated for beds less than 10 ft in thickness. In certain areas, production is derived from relatively thin formations. The importance of thin bed evaluation, the fact that the Scintillometer is an adequate tool for this application, and the general lack of published information concerning neutron porosity for thin beds are the fundamental reasons for presenting this method of porosity determination. This concept is not put forth with the idea of discounting existing methods, but is merely suggested as a modification of other accepted methods of porosity determination which makes no allowance for quantitative evaluation of thin beds. The effects on the neutron log of counting statistics, statistical variation in the porosity of earth materials, and hole size must be taken into account to obtain neutron derived porosities. Since these effects have been described in past literature, the authors have not made an attempt to go into the subject in detail. With the use of statistical and repeated sections on the log, it may be determined which responses on the log actually correspond with lithologic changes. EFFECT OF DRAG AND ITS RELATIONSHIP TO TIME CONSTANT AND LOGGING SPEED Before entering into a discussion of porosity determination of thin beds, there should be a thorough

Jan 1, 1956

By P. G. Shewmon, F. R. Winslow

An experimental method is describedfor Ihe determination of the derivative of the surface free energy (y,) with surface orientation using symmetric bicrystals. The method measures the equilibrium root-angle of grain boundary grooves for the same grain boundary on two different surfaces. In contrast to previous methods, the presence of annealing twins is not necessary. Results on silver at 900°C indicate that ??s/?3 is 0.014y, on the (loo), 0.075y, on the (111), and < 0.004?s on the (110). DURING an investigation of the kinetics of grain-boundary grooving on silver&apos; values of the derivative of the surface free energy ?s with respect to orientation were needed. Previous investigations of these so-called torque terms show that, for low-index planes in copper2 and nickel,&apos; a finite derivative exists even near the melting point. These two studies give the only previously published values of the torque on low-index metal surfaces. These investigators measured the equilibrium root angles, both greater than and less than 180 deg, along the lines where a twin boundary intersects a free surface. The technique described here is suitable for materials which do not have annealing twins, and enables the surface for study to be chosen instead of having to work in a direction normal to the twin trace on the surface. The purpose of this paper is to describe this new technique and to report the values found for the (111): (100), and (110) surfaces of silver. To check the technique proposed above, a series of 99.99 pct Ag bicrystals were used. These bicrystals were grown from the melt by a modified Bridge-man technique so that a low-index direction was parallel to the growth direction. Two orthogonal faces were studied on each bicrystal. One of these contained the low index or simple plane normal to

Jan 1, 1963

By Darwin Soler

This chapter will outline the operating procedures at Freeport Kaolin Co.5 kaolin mining operations in Georgia, with emphasis on explaining new techniques recently introduced to reclaim mined-out areas for reforestation. Kaolin is found in the central Georgia area (See Fig. 1) in lenticular, sedimentary deposits of high purity. The beds are Cretaceous in age and vary from 4 to 60 ft in thickness, under a cover of sedimentary overburden ranging from 5 to 150 ft. The kaolin beds contain the mineral kaolinite (a hydrous aluminum silicate) and have a particle-size distribution ranging from about 20µ to the submicron level and averaging about 60% below 2µ. The only contaminants in the deposits are coarse mica, quartz particles, and minor amounts of iron and titanium oxides. These kaolin deposits vary widely in quality from deposit to deposit and also vary within individual deposits. Some of the controlling quality specifications which are determined during exploration are viscosity in water suspension, optical brightness index as measured by reflectance, amenability to bleaching, and particle-size distribution. For this reason, only a small portion of the total kaolin reserves in the Georgia belt are suitable for wet processing for the present markets being served. Kaolin clays are selectively mined by different mechanical methods and are beneficiated by both wet and dry processing to produce a number of products used as fillers and coatings in the paper industry; fillers or additives in the paint, plastic, and rubber industries; and as basic raw materials for the ceramic industry. The State of Georgia is the largest kaolin producer in the United States, with 3,206,454 tons produced in 1966, according to U.S. Bureau of Mines statistics. Freeport Kaolin Co’s processing plant is located in Gordon, Ga., about 20 miles east of Macon, Ga.

Jan 1, 1969

By H. J. Rose

Graphic methods have long been used to advantage in dealing with diverse phases of fuel technology and research. Not only are graphs convenient for presenting data and making calculations, but they are invaluable for deriving generalizations from a mass of data. This is particularly true when relationships are obscure and numerical correlation is poor. This paper describes a new form of graph, the Multibasic Coal Chart, which has been developed to facilitate the study and comparison of coals of all ranks from peat to anthracite on any moisture and purity basis. This type of chart is of unique value for coal classification purposes, since it permits a direct visual comparison of the results obtained when coals are classified by the various systems which have been proposed. Coals are highly variable in character as a result of wide differenees in original vegetal ingredients, degree of metamorphism, and nature and amount of associated impurities. For nearly 100 years, attempts have been made to devise a satisfactory method of classification, and many tables, formulas, ratios and graphs have been suggested. Many of the suggested systems possess considerable merit and have found a limited use, thus promoting a better understanding of coal. However, objections have been raised against each system, and none has received general adoption. When the various systems of classification are compared, it is found that there is an apparently almost hopeless confusion due to: 1. Serious lack of agreement as to the proper moisture and purity basis on which to classify coal. More than ten different bases have been proposed, each of which requires complete recalculat.ion of the analysis data used. 2. Lack of agreement as to what chemical and physical properties are most important and best to use for classification purposes. There is too little knowledge of the degree to which these properties can be correlated.

Jan 1, 1930

By Dr. Hans Von Höfer

APART from the hypothesis of a .cosmic origin (which failed of acceptance because it was not adequately supported by facts), the only important controversy concerning the origin of petroleum has been, for a long time, between the advocates of inorganic and of organic origin respectively. Each of these theories has had a long history of development, and is still being perfected, under the influence of two causes: (1) the increasingly extensive and thorough study of the oil-fields (of which new examples are periodically discovered and opened); and (2) the progress of synthetic experiments devoted to this question. Moreover, the advance in our physical and chemical knowledge of the properties of this peculiar natural product has necessarily modified all criticism of conflicting views. I. THE HYPOTHESIS OF INORGANIC ORIGIN That the notion of an inorganic origin of petroleum, first set forth by Berthelot in 1866, and afterward ingeniously developed and formulated by Mendelejeff, should thus have proceeded chiefly from chemists, is quite natural; for the question was one of possible chemical processes in the earth&apos;s interior, and of imagined chemical reactions to be, verified by experiment. Hypotheses of this kind were suggested by many chemists, of whom two, P. Sabatier and J. H. Senderens, may be specially named by reason of their highly interesting chemical experiments. Among geologists, Mendelejeff&apos;s hypothesis was received at first with much interest and favor; for it rested on the assumption of a central terrestrial mass of iron carbide, and the geologists had good reasons for adopting that assumption. Yet comparatively few of them attempted to furnish geological proofs of the hypothesis: the majority either silently believed in it, or for one or another reason rejected it altogether.

Jan 5, 1914

By Stanley W. Sundeen

2.3-1. Introduction. The subject-"Preliminary Evaluation of Coal, Metallic and Industrial Mineral Deposits for Surface Mining&apos;-seems at first glance to be definitive and not likely to be misinterpreted. Nevertheless, there are widely divergent opinions as to what is meant by "preliminary" and even as to what is meant by "evaluation." Some definition and qualification is necessary in order to provide a readily recognized basis for discussion. Evaluation evokes the idea of organizing extant data and judging its significance especially in the economic sense. It also may evoke the concept of the physical processes of acquiring the data that will characterize the deposit such as the geologic mapping, drilling, etc. Castle (5) considers that evaluation may embrace psychological aspects wherein human traits as, for example, over optimism might cause the evaluator to overlook obvious project weaknesses. In this chapter, evaluation is discussed primarily from the viewpoint of economically appraising a project from data available at a given point in time. The qualifying adjective "preliminary" is not easily defineable. In fact, some kind of evaluation proceeds, if not continuously, intermittently over the full span of exploration and early stages of development of a deposit. Bailly (1) comments: "Sometimes, before starting exploration in new areas or countries for a given commodity, we establish models to define what minimum combinations of re- coverable grade and tonnage are needed to give the minimum acceptable rate of return established by corporate policy. Then, before starting physical exploration in any target area we try and guesstimate optimistically what best &apos;geometry-grade-tonnage&apos; can be expected. If these are acceptable in light of above minimum combinations, exploration is started as soon as funds are appropriated for the target area.&apos;&apos;

Jan 1, 1968

By Harry L. Washburn, Robert L. Llewellyn, W. J. Halvorsen

Many of the problems that occur in the preparation plant originate from practices in the mine. Impurities in raw coal can be in the seam itself or from extraneous material taken in mining from the roof or bottom. In the case of underground mines, the choice of mining equipment will affect the size consist and the amount of extraneous material included with the coal. Also, governmental regulations concerning the degree of rock dusting, gobbing underground, and cleanup have increased the dirt in raw coal. Sulfur dioxide emission standards, on the other hand, are pressuring the coal industry to clean coal more thoroughly. Coal supplied for coking purposes is nearly all upgraded by washing, while for the largest market, electric power generation, a high proportion is shipped as a raw product with processing, in whole or in part, only necessary when excess impurities are mined with the coal. This chapter will deal primarily with plants that process or wash coal to some extent (Fig. 1) and only incidentally with mines shipping raw run-of-mine coal crushed to a top size of, usually, 51 to 102 mm (2 to 4 in.), with little, if any, other treatment. JUSTIFICATION FOR COAL PREPARATION During the past decade, major changes have occurred affecting the market, profit, and long-range planning of the coal industry. Mining companies have become "partners" with consumers at many new and some old mines, both for steam and metallurgical coals. Coal properties have become "assigned" tonnages at mutually agreed upon conditions and prices. Lower unit-train tariffs have been instrumental in helping coal markets to compete against oil and nuclear energy. Coal prices for power plants are still on a Btu (British thermal unit)

Jan 1, 1981

By J. Parke Channing

THE growth of and profession depends on meeting and solving new problems. It is a continuous process. &apos;A period free from new, or hitherto unknown, questions will be a period of arrested development in the profession it affects. The present generation has witnessed a&apos; mechanical development that has been truly marvelous: Almost every day marks the advent of a new, or the improvement of an old; process, method or machine. Wonders are now commonplace. The impossible is regularly accomplished. Yet, with all our progress in every realm of science and with our development in the engineering field, advances which have made possible the marvelous growth in industry, we have not made commensurate gains in methods affecting the human factor. Without the cooperation of the worker, we shall always fall short of our goal in a mechanical or statistical sense. If we do not make the individual members of the human family strong, healthy, happy, and ambitious for better things for themselves and their children, we will have failed utterly, for that is the real reason for our existence as men and the purpose of our organized effort as an engineering group. Thomas A. Edison

Jan 1, 1921

By Peter Hood

Data on worldwide geophysical activity in mining exploration programs is collected annually by the Geophysical Activity Committee of the Society of Exploration Geophysicists as part of a continuing service to the industry. The data is obtained by sending out questionnaires to all organizations (which are) known to be carrying out mining geophysical work; the organizations canvassed include mining companies, contractors, government departments and universities. The questionnaire is divided into three sections, namely ground methods, airborne methods and research. In 1968, 515 questionnaires were circulated throughout the non-Communist world and 283 replies were received which is a 55% return. A 67% return was received from the U. S. organizations surveyed so the statistics quoted in this report for the United States are reasonably reliable. This report is published in condensed form, but with emphasis on the United States statistics, with the permission of the Society of Exploration Geophysicists. It was presented at the 39th Annual International Meeting of the SEG in Calgary, Alberta, on September 15, 1969. Worldwide utilization of mining geophysical methods reached a new high in 1968 with total expenditures of United States $41.4 million, compared lo $32.3 million in 1967, representing a 28%, increase. The expenditure distribution by area and type of activity is shown in the graph on page 64. In terms of money spent, ground geophysical surveys accounted for 49% of the total, airborne survey&apos;s 36% and research 15%. The percentage of the money spent on ground geophysical surveys fell by approximately 7% from 1967, that for airborne surveys, increased by 5%, and for research the amount increased by 2%. Industry accounted for 79°1% of the total monies spent on mining geophysical activity in the world in 1968 and governments and universities 21 o%.

Jan 1, 1970

For the benefit of those of our members who are considerable holders of securities, but owing to their isolated situations are not in close touch with the metropolitan market and current quotations, we are publishing two very interesting graphs, showing the course of the bond and stock markets in New York over a long period. These graphs are furnished through the courtesy of the financial department of the New York Tribune.

Jan 12, 1919

For the benefit of those of our members who are considerable holders of securities, but owing to their isolated situations are not in close touch. with the, metropolitan market and current quotations, we are publishing two very interesting graphs, showing the course of the bond and stock markets in New York over a long period. These graphs are furnished through the courtesy of the financial department of the New York Tribune.

Jan 9, 1919

CONTENTS SECTION I Page Page War Notice v Personal xv St. Louis Meeting vi Employment : : xvii Nominations for Officers ix Local Section News xviii Burr A. Robinson x Meetings of Societies :.: xxiv New Collective Index of Transac- Library xxv tions xi Membership : xxxii Alabama Technical Association... xi Institute Committees xlix Proceedings, Meeting of Board of Officers and Directors lvi Directors xi Members of the Institute in Mili- tary Service xiii

Jan 8, 1917

By Frederic L. Kadey

Perlite, as a volcanic glass, has been recognized since the Third Century, B.C. (Langford, 1978). The precise details of discovery often become lost in antiquity, and the variations among the stories pertaining to the more recent discovery of perlite as a material of commerce are no exception. Credit in the United States is given to a dentist who, while experimenting with tooth enamels about 1941, discovered that perlite-the rock-intumesced when subjected to heat. At about the same time it is reported that the chief geologist of Silver and Barytes Ores Mining Co. attempted to put out a picnic bonfire on the shores of Milos Island, Greece by throwing beach sand on it. The ensuing pyrotechnic display immediately conjured up in that man&apos;s mind the possibility of a new use for the volcanic rock that constituted most of the island. Very little was done with this discovery either here or abroad until after World War II. Today the name perlite is applied to both the hydrated volcanic glass, generally of rhyolitic composition, and to the lightweight aggregate that is produced from the expansion of the glass after it has been crushed and sized. Petrologically, it is defined as a glassy rhyolite that has a pearly luster and concentric, onionskin parting. Occurrences of perlite are restricted to several Tertiary to Quaternary age rhyolitic belts that trend in a generally north-south direction around the world. Commercially suitable deposits generally occur as domes of several hundred feet in height, although glassy zones in welded ash-flow tuffs and others associated with dikes and sills also have been reported. Mining is by ripping and blasting from open pits. Because of weight considerations, perlite usually is shipped to the local market area for subsequent expanding. In the United States, New Mexico leads in production with Arizona, California, Nevada, Idaho, and Colorado following in approximately that order. The principal use for expanded perlite is as a lightweight insulating aggregate in cryogenics, in plaster, concrete, and in loose fill insulation. Expanded perlite is also used in horticultural applications, and after subsequent milling and classification, as a filter aid. The United States is the world&apos;s largest producer and consumer of perlite. Table 1 shows the world production of perlite and Table 2 shows the perlite mined, processed, expanded, and sold or used by producers in the United States. Geology Composition and Morphology Any discussion of perlite must take into consideration its dual nomenclature, for it is known by the same name as both the naturally occurring rock and, after processing and expansion, as the lightweight aggregate of commercial significance. In its naturally occurring form, perlite is a rhyolitic glass that contains from 2 to 5% combined water. While perlite also can occur as andesitic or dacitic glass, these latter types are of negligible commercial significance. Table 3 lists the chemical composition of a few typical perlites (Anderson, et al., 1956; Langford, 1979). What sets perlite of commercial significance apart from other volcanic glasses is the fact that under the proper conditions of preparation-crushing and sizing-it will, when rapidly introduced into a flame of sufficient temperature, expand or "pop." All of the elements of composition contribute to the expansibility of the rock. The role of the combined water, however, is the most significant because it is believed not only to produce a fluxing effect in the softening of the highly siliceous glass prior to expansion, but it is also responsible for the explosive force of expansion through volatilization during heating. The current theory of the origin of the water in perlite is now less con-

Jan 1, 1983

By Peter H. Fletcher

THE ECONOMIC THEORY It will assist in the understanding of the Resource Rent Tax ("RRT") proposals in Australia if the economic theory behind the tax is briefly explained. The idea goes back to the concept of rent put forward by the nineteenth century economist David Ricardo. His analysis was broadly as follows: A tenant who farms land which is just on the margin of economic viability cannot afford to pay his landlord any rent, because the value of the crop produced by such marginal land is equal to the cost of producing the crop, plus the cost of keeping the tenant alive. There is nothing left out of which to pay rent to landlord. A tenant who farms good land can afford to pay his landlord rent -- but the maximum amount of rent that he can be asked to pay is the excess of the value of the crop produced by the good land over the cost of producing the crop and of keeping the tenant alive. Adapting this theory to the taxation of mining projects, modern economists who favour this system of taxation say that a profitable mining (or resource) project produces rent in the Ricardian sense. The amount of the rent is the excess of the profits by the project over the amount of profit which is required to attract the taxpayer to invest in the project in the first place. This explains why the tax is called "Resource Rent Tax". PAPUA NEW GUINEA PRECEDENT Although Papua New Guinea ("PNG") is now independent of Australia, there are still close links between the two countries, and strong similarities between their respective tax regimes. PNG introduced an Additional Profits Tax ("APT") in 1978. In many respects, Australia&apos;s RRT proposals follow the precedent set by PNG1s APT. However, in practical terms, not a great deal can be learned at this stage from PNG&apos;s experiences since, according to the writer&apos;s understanding, no PNG mining project has yet paid any APT. The Bougainville mine is not liable to APT, being subject to tax under its own separate Act, which contains a different formula. Outline of PNG Additional Profits Tax. PNG has two versions of Additional Profits Tax ("APT) - one applying to general mining, the other to petroleum mining. The two versions are very similar. The general mining version is described below. The tax applies on a licence by licence basis. This means that losses on Licence A cannot be offset against profits on Licence B. Expenditure relating to two or more licences, is apportioned "in such manner as the Chief Controller thinks reasonable". Tax is levied on the "accumulated value of net cash receipts" at the rate of (70 - n)% where n=the rate of income tax. The accumulated value of net cash receipts ("av") is calculated as follows: Calculations commence from the first year in which substantial expenditure was incurred on the construction of facilities for the carrying out of mining operations on the licence. For that year the av consists of the total allowable expenditure to date on that lease. For the second year, the av is the av at the end of year one indexed in accordance with the statutory formula set out below, plus the total allowable expenditure in year 2. For year 3, the av is the av at the end of year 2 adjusted by the index factors, plus the total allowable expenditure in year 3. This process is repeated year after year. When the licence starts to earn revenue, the revenue is deducted from total allowable expenditure for that year. If revenue exceeds total allowable

Jan 1, 1985