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By Brooks J. Klimley, Daniel M. Higgins, Grover R. Castle

Measuring The Economic Viability Of Resource Projects (A Western Surface Coal Project) The bankers approach to the analysis of a new "green fields" mining project is similar but different from the approach that the pining company might take. The purpose of this paper shall be to discuss the techniques that are used by mining companies and bankers as they try to measure the economic viability of mining projects. The analysis of these new projects (by both the mining companies and the banker) is based on a projected revenue stream and not on historical earnings or past perfomance because these projects are start up situations with no history to look to. The starting point in the analysis of these projections is the choice of the assumptions to be used in preparing these projections. After the assumptions have been determined and the projections are prepared then the projections are submitted to various tests in order to determine whether the project measures up to previously agreed upon minimum standards. In order to illustrate the analytical procedures used in evaluating a mineral project the writer has constructed a hypothetical case involving the development of a western surface coal mine (Property). The basic data in connection with this hypothetical new project is described in the next section of this paper. After the Description of the Project is a section which shows the type of analysis that a mining company might prepare in order to approach a bank for a loan and the final section illustrates the type of analysis that a bank might prepare in evaluating this loan request. Description Of The Project or Basic Data In Connection With Undeveloped Western Surface Coal Property An independent mining/geological Consultant's report has been completed on the Property which confirms that the Property contains 175 million tons of economically recoverable coal subdivided into the following reserve categories in accordance with U.S. Bureau of Mines and U.S. Geological Survey definitions: Measured or Proven 90,000,000 Indicated or Probable 50,000,000 Inferred or Possible 35,000,000 The owners of the reserves have chosen to drill up those reserves that are nearest to the subcrop and have not spent as much time on those portions of the Property which are on the fringes of the deposit where the overburden is thicker because the stripping ratio and hence the operating costs and capital requirements are higher down dip. The proven reserves are based on an average thickness of 80 feet, of which a mining recovery of 90% is projected. The overburden thickness varies from 0' to 280' with an average thickness of 127'. The overburden consists mainly of scoria, sandstone, gravel, shale and silty clay. 134 holes were cored (and analysis done on five foot increments) in the measured reserve on the following spacing: 100 foot centers to define the burn line; 1,320 foot centers to define the early mining areas; 2,640 foot centers to identify the later mining areas.

Jan 1, 1985

By W. C. Krumbein

GEOLOGICAL problems are approached from a geometrical (space relations) viewpoint, a kinematical (time sequence) viewpoint, or a dynamical viewpoint. The first two require sound training in conventional geology and in field methods. The third approach requires a solid foundation of chemistry, physics, and mathematics. Modern training for geologists should include close integration of basic sciences with geological principles. INTRODUCTION Our knowledge of the earth has increased tremendously during the last half century. We know more about its surface configuration, the distribution of its natural resources, the procession of living forms that inhabited it in the past, the chemical composition of its oceans, the areal distribution of its surface rocks, the movements of its atmosphere, and so on. Not only do we know more facts about the earth, but we have a better understanding of the processes that take place on and within it, such as the nature of earthquakes, the thermodynamics of the atmosphere, the chemical equilibria involved in the formation of igneous rocks, the mechanics of stream flow, the dynamics of the earth's origin, and so on. Many sciences contributed to the sum total of this knowledge, including such established disciplines as geology, geography, physics, chemistry, astronomy, biology. Out of this accumulation of new knowledge grew also a group of new sciences, such as seismology, oceanography, meteorology, volcanology, hydrology. Collectively these latter are known as the geophysical and geochemical sciences, and to a large extent they began as branches of geology. Until the turn of the century, for example, the study of earthquakes (seismology) was a part of geology, although as early as 1846 Mallet, a physicist, had suggested that the subject could be investigated by elastic-wave theory. Comparatively little progress was made along these lines until the seismograph was developed near the turn of the century; since then, additional earthquake data have accumulated rapidly, but more important, the interpretation of these data essentially has kept pace with their accumulation. In similar fashion, meteorology, was generally considered a branch of geology as recently as one or two decades ago. Considerable progress had been made in such aspects as weather forecasting, but the science dates its recent rapid rise from the year 1911, when Bjerknes first applied the principles of dynamics to the analysis of air masses. The rapid development of such disciplines as oceanography, volcanology and hydrology was due in part to the application of principles of chemical equilibrium, of dynamics, and of thermodynamics to earth problems, by men who were essentially physicists or chemists by training. The last half century, therefore, and particularly the last two decades, saw the influx of numerous chemists and physicists into the realm of the earth sciences. In the meantime the main body of geology itself showed a marked growth, and

Jan 1, 1941

By Haydn H. Murray, Sam H. Patterson

The term clay is somewhat ambiguous unless specifically defined, because it is used in three ways: (1) as a diverse group of fine-grained minerals, (2) as a rock term, and (3) as a particle-size term. Actually, most persons using the term clay realize that it has several meanings, and in most instances they define it. As a rock term, clay is difficult to define because of the wide variety of materials that compose it; therefore, the definition must be general. Clay is a natural earthy, fine-grained material composed largely of a group of crystalline minerals known as the clay minerals. These minerals are hydrous silicates composed mainly of silica, alumina, and water. Several of these minerals also contain appreciable quantities of iron, alkalies, and alkaline earths. Many definitions state that a clay is plastic when wet. Most clay materials do have this property, but some clays are not plastic; for example, halloysite and flint clay. As a particle-size term, clay is used for the category that includes the smallest particles. The maximum-size particles in the clay-size grade are defined differently on various grade scales. Soil investigators and mineralogists generally use 2 micrometers as the maximum size, whereas the widely used scale by Wentworth (1922) defines clay as material finer than approximately 4 micrometers. Some authorities find it convenient to use the term clay for any fine-grained, natural, earthy, argillaceous material (Grim, 1968). When used this way, the term includes clay, shale, or argillite, and some argillaceous soils. Even though no standard definition of the term clay is accepted by geologists, agronomists, engineers, and others, the term is generally understood by those who use it. Clay is an abundant natural raw material, and it has an amazing variety of uses and properties which will be discussed in this chapter. Clays rank among the leading industrial minerals in both tonnages produced and total value. Their importance is indicated in Table 1, which lists the 1978, 1979, and 1980 production and values according to the US Bureau of Mines (Ampian, 1980). Statistical data summarizing world production of kaolin, bentonite, and fuller's earth are compiled by the US Bureau of Mines (Ampian and Polk, 1981). The total world bentonite production in 1980 was 6,625,204 st of which the United States produced 4,184,619 st. The total fuller's earth produced in the world in 1980 was 1,952,600 st of which 1,534,000 st was produced in the United States. The total world kaolin production in 1980 was estimated at 22,971,000 st. Approximately 13 million tons of this total was produced in two countries, the United States and the United Kingdom. World production data on ball clay, fire clay, and miscellaneous clays are not available. As industrial minerals, clays are a complex group that consists of several mineral commodities, each having somewhat different mineralogy, geologic occurrence, technology, and uses. In this chapter these commodities are organized as follows: (1) bentonite and fuller's earth; (2) kaolin, ball clay, halloysite, and refractory clays; and (3) miscellaneous clay and shale. Bentonite and fuller's earth are grouped together because they are closely interrelated. Though bentonite is a term based on mineral composition and fuller's earth is a term based on use, the two are virtually inseparable, because much, but by no means all, clay sold as

Jan 1, 1983

By R. P. Rothwell

Jan 1, 1885

By C. A. Heiland

MEASUREMENTS of gravity with gravimeters have come into increased use in this country and abroad in the past five years. Probably 100 to 125 gravimeter parties are working in the United States alone. In oil exploration, gravimeter methods have relegated the gravity pendulum definitely to second place, if not third, and now closely rival and possibly surpass the torsion balance in many applications. Gravimeters have lately been applied in mining, although it is doubtful whether they will ever replace electrical or magnetic methods in this work. Notwithstanding the widespread application of gravimeters, there has been no article covering the entire field in the domestic or foreign literature. The purpose of this paper is to meet the demand for com-prehensive engineering information on the subject. The working principles of a number of gravimeters will be, illustrated and treated in relation to the action of corresponding seismometers and astatization methods. The mathematical discussion of theory has been confined to the most necessary fundamentals and been given in as ele-mentary form as possible. A description of calibration methods con-stitutes the last part of the paper. The symbols shown at the top of page 2 will be used in equations throughout the paper.

Jan 1, 1939

By F. S. Crawford

IRON and copper are mined in the Lake Superior district. The iron mines of the district have the best safety record for that industry in the country as a whole, while the copper mines of the district rank second in two of the four years recorded (Table 1). In Utah copper comes mainly from open-pit mines, which enables that state to lead easily in safety. All of the Michigan production comes from deep under-ground workings. About 60 per cent of the iron miners in St. Louis County, Minnesota, are employed at open-pit mines; this favorably affects the combined open-pit and underground accident-frequency rate, as this county pro-vides most of the Minnesota-mined iron ore. In Michigan, however, there are few open-pit mines, the bulk of the production coming from underground mines, while all of the Wisconsin production, just across the state line from Michigan, is from underground mines. In spite of the fact that fewer mines in Michigan use the safer open-pit method, the iron-mining industry of that state maintained a consistently low record from 1931 to 1934; however, it was many points behind its nearest com petitor, Minnesota, with its much greater production from open-pit mines.

Jan 1, 1939

By William M. Shepard

The Tintic mining districts of central Utah com- prise one of the major silver-lead producing areas in the United States. Ore valued at nearly $450 million has been produced from these districts since the initial discoveries, in 1869, of veins cutting the Silver City monzonite stock. Subsequent production from the famous manto-type "ore runs", which characterize the Main Tintic district, was followed during the past 40 years by discovery of the blind orebodies of the East Tintic district, including the famous Tintic Standard mine and the most recent discovery, the Burgin mine, currently being brought to full production by Kennecott Copper. The occurrence of blind orebodies of exceptional size and grade in both the Main and East Tintic districts has made this area a field laboratory of major importance for the study of geochemical dispersion halos and alteration features associated with known ore, and has led to the discovery of additional concealed orebodies. The larger share of the basic data-gathering and interpretation has been done by members of the U.S. Geological Survey who have been studying the Tintic mining areas since before the turn of the century. These studies have been supplemented and expanded by the geological staffs of the local operating mining companies, by exploration geologists and by students.

Jan 4, 1966

[ASSETS CAPITAL ASSETS: Equity in United Engineering Society's Land and Buildings $486,792.79 Library 40,000.00 $526,792.79 INVESTMENTS: Jas. Douglas Fund-Schedule #2 $ 99,966.40 Life Membership Fund-Schedule #3 9,415.63 R. W. Hunt Medal Fund-Schedule #4 7,489.09 116,871.12 INVENTORIES: Paper Account 305.10] [ ]

Jan 1, 1925

By A. K. Chakravarti, A. Lihiri, G. G. Sarkar

One primary objective of India's third Five Year Plan is the expansion of coal production. The goal: boost present output of 45 million tons to 95 million tons by 1965--an increase of more than 100 pct!

Jan 7, 1961

By Arthur L. Walker

In June, 1893, while I was with the Old Dominion Copper Co. at Globe, Ariz., I received an offer to take charge, as manager, of the Baltimore Electric? Refining Co. which had recently built a plant at Baltimore, Md., having a capacity of about 1200 tons of electrolytic copper per month, using the Hayden series system. This was a very large output, for in those days the plants were small and the art was in its infancy. At the beginning of 1893 there were 11 electrolytic refineries in the United States, most of them using the multiple system. The Hayden series system was used at Baltimore and Bridgeport and the Smith series system was in operation at the Electrolytic Copper Co. at Ansonia, COM., and at the Pennsylvania Salt Co. at Philadelphia. In the latter system the plates were placed in a horizontal position, but the operating difficulties were so numerous it was soon discarded. The total production of these 11 plants in 1892 was very small; I have not been able to discover reliable figures of production. There were about thirty electrolytic copper refineries in the world that year, according to Titus Ulke, and the entire production of these

Jan 1, 1932

By H. H. Uhlig

In our study of the mechanism of and the prevention of corrosion in stainless steels, it was considered of fundamental importance to obtain knowledge of the surface structure of such alloys. If corrosion resistance is due to a self-healing oxide layer, which like a paint film protects the underlying metal, it would be obviously relevant were the effort made to make the film less permeable and more adherent; for example, the surface might be expected to respond to an anodizing process, which is found successful in increasing the film thickness and corrosion resistance of aluminum. However, if passivity and corrosion resistance of stainless steels are due to another cause, the attack of the problem would follow another path. One of the most effective techniques for studying passivity and corrosion tendency is the measurement of the electrochemical potential. Not only can one determine by potential measurements whether a metal is active or passive, but also one can determine the degree of passivity and rate of transformation of passivity with time. Chemical media that build up or destroy passivity when in contact with the steel can also be classified by potential measurements. Something can be learned, too, of the effect of alloy additions such as molybdenum to 18-8, known to decrease corrosion of the alloy in chloride solutions. A study of alloys in previous investigations has sometimes included data on the electrochemical potentials. Tammann and Sotterl measured the electrochenlical potentials of alloys of iron-molybdenum and iron-chromium and reperted the critical concentration of molybdenum or chromium at which passivity initiates. Strauss2 made similar measurements for the iron-chromium system. The electrochemical potential3 has also been used to indicate carbide precipitated 18-8. In 18-8, heat-treated to precipitate carbide, active metal exists at the region of the grain boundaries, contrasted with passive metal within the grains, the active metal accounting for a resultant active potential. Several

Jan 1, 1940

By H. H. Uhlig

In our study of the mechanism of and the prevention of corrosion in stainless steels, it was considered of fundamental importance to obtain knowledge of the surface structure of such alloys. If corrosion resistance is due to a self-healing oxide layer, which like a paint film protects the underlying metal, it would be obviously relevant were the effort made to make the film less permeable and more adherent; for example, the surface might be expected to respond to an anodizing process, which is found successful in increasing the film thickness and corrosion resistance of aluminum. However, if passivity and corrosion resistance of stainless steels are due to another cause, the attack of the problem would follow another path. One of the most effective techniques for studying passivity and corrosion tendency is the measurement of the electrochemical potential. Not only can one determine by potential measurements whether a metal is active or passive, but also one can determine the degree of passivity and rate of transformation of passivity with time. Chemical media that build up or destroy passivity when in contact with the steel can also be classified by potential measurements. Something can be learned, too, of the effect of alloy additions such as molybdenum to 18-8, known to decrease corrosion of the alloy in chloride solutions. A study of alloys in previous investigations has sometimes included data on the electrochemical potentials. Tammann and Sotterl measured the electrochenlical potentials of alloys of iron-molybdenum and iron-chromium and reperted the critical concentration of molybdenum or chromium at which passivity initiates. Strauss2 made similar measurements for the iron-chromium system. The electrochemical potential3 has also been used to indicate carbide precipitated 18-8. In 18-8, heat-treated to precipitate carbide, active metal exists at the region of the grain boundaries, contrasted with passive metal within the grains, the active metal accounting for a resultant active potential. Several

Jan 1, 1940

By E. H. Ahrens

This paper deals with the responsibilities of an operating geologists and the relationship of operations to exploration. It should be of interest to those soon to enter the profession, those new to mining geology and as a review to more experienced geologists. Subjects discussed include detailed geologic mapping, sampling, core logging, assaying, selection of proper map scale, posting geological and assay data, section preparation, identification of ore controls, delineation of development drill targets and geologic hazards, models and the very important topic of salesmanship. Methods and ideas, proven valid in vein, pyrometasomatic replacement and porphyry copper deposits are presented. Hopefully, these will smooth the path for new members of our profession.

Jan 1, 1984

By W. C. Krumbein

GEOLOGICAL problems are approached from a geometrical (space relations) viewpoint, a kinematical (time sequence) viewpoint, or a dynamical viewpoint. The first two require sound training in conventional geology and in field methods. The third approach requires a solid foundation of chemistry, physics, and mathematics. Modern training for geologists should include close integration of basic sciences with geological principles. INTRODUCTION Our knowledge of the earth has increased tremendously during the last half century. We know more about its surface configuration, the distribution of its natural resources, the procession of living forms that inhabited it in the past, the chemical composition of its oceans, the areal distribution of its surface rocks, the movements of its atmosphere, and so on. Not only do we know more facts about the earth, but we have a better understanding of the processes that take place on and within it, such as the nature of earthquakes, the thermodynamics of the atmosphere, the chemical equilibria involved in the formation of igneous rocks, the mechanics of stream flow, the dynamics of the earth's origin, and so on. Many sciences contributed to the sum total of this knowledge, including such established disciplines as geology, geography, physics, chemistry, astronomy, biology. Out of this accumulation of new knowledge grew also a group of new sciences, such as seismology, oceanography, meteorology, volcanology, hydrology. Collectively these latter are known as the geophysical and geochemical sciences, and to a large extent they began as branches of geology. Until the turn of the century, for example, the study of earthquakes (seismology) was a part of geology, although as early as 1846 Mallet, a physicist, had suggested that the subject could be investigated by elastic-wave theory. Comparatively little progress was made along these lines until the seismograph was developed near the turn of the century; since then, additional earthquake data have accumulated rapidly, but more important, the interpretation of these data essentially has kept pace with their accumulation. In similar fashion, meteorology, was generally considered a branch of geology as recently as one or two decades ago. Considerable progress had been made in such aspects as weather forecasting, but the science dates its recent rapid rise from the year 1911, when Bjerknes first applied the principles of dynamics to the analysis of air masses. The rapid development of such disciplines as oceanography, volcanology and hydrology was due in part to the application of principles of chemical equilibrium, of dynamics, and of thermodynamics to earth problems, by men who were essentially physicists or chemists by training. The last half century, therefore, and particularly the last two decades, saw the influx of numerous chemists and physicists into the realm of the earth sciences. In the meantime the main body of geology itself showed a marked growth, and

Jan 1, 1941

AUGUST began with a reminder that warfare was still in progress in the world, in that the Greeks, still at war with Turkey, threatened Constantinople in spite of the small British and French forces of occupation and opened a vista of international dangers. There was in this, moreover, a recollection that religious questions in India had prevented the British from permitting a real settlement of the Turkish question, wherein the absence of Russia as a great power is missed. Civil warfare also continued in Ireland and China. Even in the military way the world is far from being at peace. Bloody fighting between the Fascisti (anti-communists) and the com-munists in Italy led to several provinces being put under martial law, but after a while these disturbances were quelled. In the latter part of the month the assassination of Michael Collins in Ireland produced a great shock. From China, however, there came rather favorable news, indicating the early reintegration of that country, which sooner or later ought to play an important part in world affairs. Economically, instead of there being any improve-ment, there grew a clearer perception of how bad things really are. Italian politics were in chaos through inability to find anyone to accept the premiership and assume the all but hopeless task of averting national bankruptcy. The French, too, began to see their own position in true colors, and especially to see how in reconstruction they had incurred debts on the strength of what they hoped to collect from Germany, with at last the understanding that the Germans could not pay and that France herself was thereby put in a desper-ate economic position. As for the Germans, them-selves their Reichsbank defaulted on ordinary bills early in August. As the month wore on the value of marks fell more and more and at the end it appeared that Germany was on the verge of economic collapse. On Aug. 7, another international conference (with America again absent) was assembled in London, this being the thirteenth since the war, and there was a general feeling that it would be the last. The prime question was what is to be done about the German reparations, but underlying was the whole subject of the entente. The conference opened like a meeting of importunate creditors, doubtful whether the debtor had any tangible assets. On Aug. 14 this conference broke up without coming to any useful conclusion. Indeed, the acrimony among the premiers was so sharp that even the entente between Great Britain and France was endangered. The international situation was saved only by the Reparations Commission excusing the Germans from the payment of 50,000,000 gold marks that come due on Aug. 15 But although the entente was nominally preserved there is no longer any illusion about the interests of Great Britain and France being different and that henceforth they will play their own hands. The London conference was really an effort to maintain the partnership, and it failed.

Jan 9, 1922

"The richest hill on earth" had its start as a placer gold camp in 1864. The gold was quickly worked out but then silver was discovered in the copper ores in Butte Hill. After ten years as a silver camp, rich copper ore was found in 1881 and the future of Butte was assured. In the early 1960's, the Anaconda Company began the shift from underground mining at Butte to open pit mining of the enormous, low-grade copper deposit surrounding the old high-grade veins which had been worked for over eighty years. Their first primary crusher was a 66 in. by 84 in. (168 m by 2. 13 m) jaw crusher. The pit was expanded at such a rate, however, that its location became endangered. Additionally, the new Clyde Weed concentrator had been built at Butte; and in 1969 construction of a new gyratory installation was started. The primary crusher at the Clyde Weed concentrator is one of the most unusual primary crushers ever put into operation. At times, the ore from the Berkeley pit contains large amounts of timber, pipe, rails, and so forth left in the ore body from the old underground mining operations; and the crusher installation had to be designed so this tramp material could be readily removed ahead of the crusher. Ore is delivered by 100- and 150-ton trucks to two side-by-side dump pockets, each with a capacity of 400 tons. Originally, a hydraulic grapple was installed on the dividing wall between the dump pockets; but it was found that oversize boulders large enough to block the discharge opening at the bottom of each hopper were rapidly covered with other material, and the grapple was unable to reach and remove the large boulders causing the blockage. In addition, the grapple was located in a quite vulnerable position; and it sustained damage from being struck by rock dumped from the trucks. Oversize boulders are now blasted. Underneath each pocket is a vibrating grizzly feeder with the grizzly bars set at 4 in. (102 mm). These feeder-grizzlies are 84 in. (2. 13 m) wide and 32 .ft (9. 75 m) long, with grizzly sections 16 ft (4. 88 m) long. Approximately 75% of the ore passes through the grizzlies and grizzly oversize then drops onto two parallel 6 ft (1. 83 m) wide picking belts. The belts are 3 in. (76 mm) thick and rest on idlers supported by air- filled rubber shock absorbers. At the side of each picking belt is a hydraulic grapple which is used to remove timbers too large to be removed by hand. At times, four men are used to remove timber and tramp iron. Timbers are dropped onto a transverse belt conveyor which discharges into a truck stationed outside the primary crusher building,

Jan 1, 1978

By Charles R. Simcoe

The stress-strain curves in the microyield region for various Fe-C solid solutions shown by Davies and Ku are typical examples of parabolic curves defined by the expression a = kEn 111 These data, when replotted on log-log coordinates, as shown in Fig. 9, exhibit three essentially parallel straight lines. It is apparent that carbon increases the flow stresses, but does not affect the exponent n. In other words, the only factor in Eq. [1] affected by in in carbon content is the constant k. As Eq. [1] is written k is the stress at a strain of 1.0. This is unsatisfactory for examining data in the microyield region. Therefore, the equation can be altered to the form: to permit the use of the authors' microyield stress at a strain of 10-6 as k. Extrapolating the curves in Fig. 9 to a strain of 10-6 gives stress values of 2000, 3200, and 5400 psi for 0.008, 0.014, and 0.02 pct C, respectively. These values do not agree exactly with the authors' measured values, but this will not affect the following discussion. The effect of carbon content on the slopes of the stress-strain curves shown in Fig. 2 of the paper by Davies and Ku can be analyzed by differentiating Eq. [2] with respect to strain. Thus: where n is always less than 1.0. Since n is essen- tially constant as a function of carbon content for the data under discussion, the slopes of the stress-strain curves depend only on k and E. If the slopes are examined at various selected Plastic strains. i.e., 10-6, 10-5, and so forth, it follows from Eq. [3] that the dif-ferent slopes for the different carbon contents depend only on the different values of ke=10-6. Thus, the larger ke=10-6, the steeper the linear stress-strain curve will rise with increasing plastic strain. This

Jan 1, 1969

ASSETS CAPITAL ASSETS Equity in United Engineering Society's Land and Buildings $486,792 79 Library 40,000 00 $526,792 79 INVESTMENTS Jas Douglas Fund-Schedule #2 $ 99,966 40 Life Membership Fund-Schedule #3 9,415 63 R W Hunt Medal Fund-Schedule #4 7,489 09 116,871 12 INVENTORIES Paper Account .305 10

Jan 1, 1923

By Lovell Lawrence

MAGNETITE deposits in the Eastern States have been mined uninterruptedly since pre-Revolutionary War days. The industry, thriving in normal times, was given impetus in all periods of tumult, and continued to advance and expand, until the Lake Superior ores came into production. A period of comparative quiet existed until increased freight rates, together with increased mining costs on Lake Region ores, permitted the magnetites again to compete. This, coupled with World War demands, created unpre¬cedented activity. Producing plants were at their peak, new mines were equipped and put in operation and the industry pushed production beyond the absorption point. Ore stocks were tremendous, internal competition severe, and a great increase in import of European ores brought the industry to a low ebb in 1923.

Jan 1, 1933

By Marlin J. Veesaert

Urban quarries offer one of the greatest opportunities for profit in nonmetallic mining with limited financial risk-if properly evaluated, planned and developed to meet market needs. Location, with respect to market, is the prime consideration. Geologic considerations and quality of rock are nearly as important. Cost factors and return on investment (ROI) are the principal financial considerations. Risk of capital is determined by weighing all factors that should be considered and how well judgments are based on information acquired. It is a simple, true axiom of business that an investment must be founded on amount of capital required with its expected return plus profit, expertise required to operate, and time involved. Urban quarries generally offer excellent stone product market opportunities. Costs of land with mineral containment and processing operations are much greater than in rural areas. Environmental problems have become increasingly severe. Competition from other quarries in the market area is usually directly proportional to the profit attractiveness. Risk of capital (initial, developmental and operational) can be evaluated and reduced only by thorough analysis of the entire situation. Time and money expended on planning and preliminary investigations probably represent the most productive investment of available company resources. Basic Reasons to Establish a Limestone Quarry Profit Motive: Certainly the dominant and overriding motive must be that of attaining a reasonable profit. In certain situations a quarry firm may acquire land, necessary rezoning (if required), and satisfy all of the other prerequisites preparatory to beginning operations but delaying the actual development.

Jan 1, 1980