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By Howard N. Eavenson

TWO months ago, just after the coal code hearing in Washington, one of our leading liberal weeklies printed a study of the coal industry made by an economist in the Administration, and on the outside cover bad it featured as "Coal-A Dying Industry." There are, of course, different opinions as to the accuracy of this characterization and I want to present some of the facts about the outlook for the bituminous industry for a short time ahead. In view of what has happened in the industry within the recent past it would be futile to attempt to make any prophecy about what is likely to occur in the future. We all know that a prophet is not without honor save in his own country, but it is likely that anyone undertaking this role about this industry would soon find himself in no man's land. One can, with some slight degree of safety perhaps, outline present conditions and tendencies and draw some inferences as to what the future may hold.

Jan 1, 1933

By Harry M. Mikami, A. Gene Sidler

Chemistry of the evolution of materials in contact with copper converter tuyeres is delineated by means of analyses of periodic punch rod samples taken during a converter cycle. Lining samples from known peripheral and end locations from three converters were investigated chemically and petrographically. One set of eight specimens representative of all lining parts was removed for study before completion of the campaign. Purely surface removal by slag action is minor. Slag filling of interconnecting cracks extending to the hot face results in a "stoping'' action which shapes the hot face contour and is a significant factor. Major wear mechanism is believed to be copper metal slabbbing caused by metal first penetrating joins and invading fractures or impregnating brick structure laterally from the joints. Importance of lining design and joint fit are emphasized. New laboratory tests are indicated. In the copper converter, molten matte, which is essentially a solution of iron and copper sulfides, is blown with air to produce blister copper. During the first stage of the process the FeS component is oxidized to SOz and FeO, the latter combining with a siliceous flux to form a predominantly ferrous silicate slag. Successive increments of matte and flux are charged, blown, and skimmed of slag until sufficient CuzS ("white metal") has accumulated. This white metal is then blown to copper metal in the final or blister-forming stage by the oxidation of sulfur to SOz and the reduction of combined copper to metal. The reactions of both stages are exothermic so provide the required heat. Temperature is controlled by cold scrap copper, flue dusts, smelter reverts, and so forth. Considerable vari- ation in practices occur depending on the type of converter, grades of the matte and flu, and other factors. Lathe and Hodnett's' survey of world converter practices gives much information on these variations and their effects on the refractories. Principles of converting chemistry are presented by Newton and wilson,' Ruddle,' and schuhmann. Most copper converting occurs within the temperature range 2100" to 2370°F although individual smelters report1 ranges from as low as 1700" to 2240°F to a high of 2200" to 2400°F. Temperature intervals reported from beginning to end of blow varied from 45" to 540°F. Average temperature range was 2030" to 2260°F and the average interval 250°F During the matte-blowing stage varying amounts of magnetite (FeO.Fe,O,) are formed in the slag as suspended crystals and also the liquid portion of the slag will contain, in addition to ferrous silicate, some Fe20s which adds to the potential magnetite formation if the temperature falls. This is a component of the so-called "dissolved magnetite" often referred to in the literature. Although the slag may contain minor amounts of CaO, A1209, MgO, and alkalies, the principal components are Fe0-Fez03-SiO,. The phase equilibria relationships of this system have been elucidated by Muan~ and Schuhmann, et a1.' These data and estimates of converting atmospheres by schuhmann4 are useful tools in studying slag behavior. It would appear that in many cases reported magnetite contents of slags are apparently higher than actually is present at operating temperature. This is probably because much of it is formed during slag solidification. The quaternary systems which have Mg-0,1,0,' and addition to iron oxides and silica are also of interest in considering the reactions of the slags with basic refractories. The formation of magnetite has an important interrelationship throughout the pyrometallurgy of copper (Mossman,' Gronningsater and Drummond," Ruddle,' Elwood and Henderson") but its presence in the converter particularly relates to operating efficiency and lining life in certain instances. Archi-

Jan 1, 1963

By E. M. Chance

HERBERT M. WILSON, Pittsburgh, Pa. (written discussion).-Permit me to endorse the author's conclusions and their form of presentation as ,being, in my judgment, the last word 'on the subject of lights for the illumination of coal mines. I also feel that the open-flame oil lamp has outlived its usefulness, and that it should go, in the interests not only of safety but of efficiency. Where an open-flame lamp can be used with safety in non-gaseous mines, the acetylene light adds materially to efficiency by its better illumination, and to safety for the numerous reasons given by Mr. Chance. The latter, however, lays chief stress on the value of the acetylene because of its non-fouling and non-obscuring effect on the atmosphere. Another important advantage over any other form of illumination is the clear, bright light projected at the point where the workman may look for danger. The better illumination materially safeguards the worker against obstacles over which he may stumble when traveling, and against dangers from falls of roof or of coal, weakness in timbering, and similar conditions. The acetylene lamp, where it may be used with safety, has advantages even over the present electric cap lamp, in that it gives a higher luminosity; and when the miner comes to learn its signals, as he will in time, just as he learns those given by the open-flame or the safety lamp, he will find that the acetylene lamp is a fair detector not only of methane but of carbon dioxide, as clearly shown by Mr. Chance. The only, serious objection, raised against the use of carbide lamps. has been recently in Pennsylvania, due to the belief of the State Mine Inspection Department that it endangered miners working on pillar work, or other places where carbon dioxide might accumulate, or where there is lack of sufficient ventilation, and because it was believed that the indications of the carbide lamp would not give the miner sufficient warning. On this point Mr. Chance has clearly shown the fallacies of the objections. I may add that for those unable to detect carbon dioxide with the acetylene lamp, the maximum of protection would be afforded by using an open oil lamp or a flame safety lamp in such places; or, because the miner might not watch his oil light, a better, protection still would be offered by a sufficient number of daily inspections of such working places by a fire boss or other official, with flame safety lamp.

Jan 4, 1917

By AIME AIME

BERYLLIUM is one of the most interesting of the minor metals and distinctly a modern development, for until the last two decades it had practically no commercial importance whatever. Then it was discovered that when small quantities of it were alloyed with copper, a copper alloy of unusual and valuable qualities resulted. This is by far its major use-in the manufacture of strong, heat-treated copper-base alloys in which the beryllium content varies from about 0.3 to 2.5 per cent. Its second most important use, though much smaller, is in the form of oxide or other nonmetallic products in the fluorescent lamp, X-ray, cathode ray, and television industries. Certain beryllium salts have the quality, in common with several other materials, of transforming short-wave radiation and cathode rays to visible radiation. Such materials are commonly known as phosphors, and the beryllium salts are the most important phosphors now in use. The third largest use for beryllium is for ceramics, including refractories. Beryllium is also used in small quantities in the form of the metal itself.

Jan 1, 1943

By AIME AIME

THE program of government drilling, conducted jointly by the U. S. Geological Survey and the Bureau of Mines, has demonstrated the presence in Texas and New Mexico of potash-bearing beds of considerable importance. Information regarding the ex- tent and location of the potash deposits as presented at the non-metallic sessions was of great interest to many engineers. These subjects will be covered in greater detail in later paragraphs. The first session, with about 50 in attendance, convened at 10 a.m. on Feb. 18, with Oliver Bowles, chair- man of the Committee on Non-Metallic Minerals, pre- siding. The first paper was on "Soapstone Mining In Virginia," presented by C. W. Ryan of Lynchburg, Va. The nature and extent of the soapstone deposits of Nelson County were described in some detail. In origin, the soapstone is undoubtedly related to a basic peridotite rock though its mode of formation is some- what uncertain. This main soapstone deposit occurs in three veins, the western, middle, and eastern, the middle vein being of greatest economic importance. Methods of stripping, quarrying and milling the rock were described and the uses of soapstone were enum- erated. In discussing this paper, C. P. Berkey, of Co- lumbia University strongly favored the theory of igneous origin of the soapstone and the need for further detailed geological study. J. L. Gillson of Cambridge, Mass., stated that the Vermont and New York talc deposits were always associated with characteristic minerals, such as, a chlorite of one particular variety, siderite, amphibole, magnetite, and biotite. C. H. Behre of Cincinnati, Ohio, raised the question of parallelism in the soapstone structure and Mr. Ryan stated that such parallelism was in evidence in some parts of the deposits. H. A. Wheeler of St. Louis, Mo., also took 'part in the discussion.

Jan 1, 1929

By JOHN R. SUMAN

IT SEEMS particularly appropriate that the Institute's Regional Meeting should be held in Minnesota this year. Whether we like it or not, we cannot help looking at things now in the light of the World War and the all-out effort we, as a nation, are making to defend our resources, our institutions, and our way of life. The ability to do this lies in large measure in the ability to forge weapons of defense-the machines of war. The basic ingredients of any defense system, or war machine, are the raw materials of industry-iron ore, providing steel for guns, shells, tanks, and warships; coal for stoking the nation's furnaces; oil to furnish power for war planes, ships, trucks, and mechanized weapons; and all the other materials that play a vital role in the operation of modern armies and navies. The tremendous requirements of full-scale defense programs are indicated by the large number of commodities that are now under priorities because the supply is not sufficient to meet both defense needs and all normal civilian consumption. But out of all these items two are of paramount importance-steel and petroleum. In this age no nation can hope to main¬tain a position as a first-class power in the world without a highly developed industry, particularly the heavy industries based on steel, and without access to the necessary resources for those industries. In 1918, 70 per cent of the iron and steel production of the United States was required for defense purposes. In 1940, 15 per cent of our iron and steel production was consumed for defense purposes, and with the acceleration of the defense program, it appears that the proportion of steel output required for defense purposes will reach 40

Jan 1, 1941

By GLENVILTE A. COLLINS

(Presented at a Meeting of the Spokane Local Section of the Institute, Feb. 17, 1912, and accepted for publication in the Bulletin. ) WHILE I am not at the present time engaged in active mine-management, my duties permit of extensive study and examination of many mines, mills, and reduction-works in various places throughout the United States. Being much interested in efficiency-work in general, and an ardent reader of writings on this subject by Frederick W. Taylor and others, as applied to manufacturing-plants, and having served my apprenticeship from mucking to the engineering design of ore-dressing and underground plants, I hope that this paper will lead others to investigate the field more fully, to the improvement of general mine- and mill-operations, as well as the advancement, intellectually, physically, and financially, of the employee and his relations with the employer. If a man who is prepared to look closely and observe broadly starts in Canada and zig-zags from camp to camp to southern Mexico, taking time casually to inspect mines, mills, and smelters, he will be pitifully impressed by the great difference in customs, and the general waste of labor, time, and money throughout the country. He will so seldom observe a dollar's worth of results given in exchange for a dollar spent that he will form a poor opinion of operating-efficiency and management. This highly-scientific department, requiring an amount of skill and executive ability equaled in few, if any, of the professions, certainly falls short of the standard established in our greater manufacturing industries. It is easily said that this is due to the diversity of conditions in mining, milling, and smelting. But on second view it must be admitted that there is room for tremendous improvements in nearly every mining-organization. The proposal of such improvements is often met by the argument that any mine

Sep 1, 1912

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By E. P. Shea

The Anaconda Co.'s Geological Department at Butte, Mont., was started early in the Company's history because of litigation involving vein ownership and extralateral rights. The problems, some of which were resolved in courts, were many because of the large number of veins and lode locations. Defensive action was required to prove ownership and protect against illegal exploitation of the downward and extra-lateral extensions of the ore bodies. In many cases it was necessary to define the outcrop of the vein and to show that its apex was within the boundaries of the lode claim. Exhibits illustrating geology were needed to present the cases clearly, and these could be made only after careful inspection and mapping of the underground workings by competent geologists. Also, The Anaconda Co. was one of the first companies to recognize the worth of skilled mining geologists and the value of accurate records in the search for new ore. The department was organized in 1900 by H. V. Winchell who, with D. W. Brunton, worked out the methods. Reno Sales was Chief Geologist from 1906 until 1948 when he was succeeded by V. D. Perry, the present Chief Geologist. Under their direction, F. A. Linforth, M. H. Gidel, C. H. Steele, E. P. Shea, C. C. Goddard, Jr., and W. A. O'Brien enlarged the scope of the work and improved the technique.

Jan 3, 1961

By AIME AIME

On Nov. 11, 1909, M. Alexandre Pourcel, of Paris, France, upon the proposal of a large number of distinguished members, and the unanimous recommendation of the Council, was elected by the Board of Directors an Honorary Member of the Institute. M. Pourcel has devoted forty-three years to the metallurgy of iron and steel ; and the work which he did between thirty and forty years ago constitutes an important part of the founda¬tion of the practice of to-day. Among his striking contribu¬tions are : (1) his perfection, in 1869, of the manufacture of high-grade ferro-manganese in a carbon-lined open-hearth furnace, instead of the costly crucibles previously used; (2) his discovery, in 1874, of the method of making solid steel cast¬ings; (3) his manufacture, in 1875, of ferro-manganese and silico-spiegel in the blast-furnace; and (4) his anticipation, in 1875, of modern American blast-furnace practice, by the pro¬duction, in a very small furnace, of Bessemer pig containing 2.5 per cent. of silicon, from a burden yielding only 46 per cent. of iron, and with a consumption, per ton of pig, of only 1,8401b. of coke, containing 15 per cent. of ash. These brilliant pioneer achievements, together with his contributions to cur¬rent technical literature, won for him the Bessemer gold medal of the Iron and Steel Institute ; the great" medal of honor," which is the highest award of the French Society of Mineral Industry, and other gold medals, as well as the distinction of honorary membership of the Comité des Forges de France, which was conferred upon him in 1891. In recent years, M. Pourcel has been instrumental, as consulting engineer of the Société de Commentry-Fourchambault, at Decazeville, France, in an extraordinary development of the manufacture of special steels. The Invar plant, of this company, is said to make a greater variety of such steels (includ-

Dec 1, 1909

By J. E. Miller, W. E. DeVaney, L. Stroud

During a recent phase study of a natural gas, two stable equilibrium liquid phases were observed at temperatures below —200°F and pressures above 200 psi. This paper reviews the published literature on the occurrence of multiple equilibrium liquid phases and presents analytical data for the vapor and two equilibrium liquid phases of the liquefied natural gas at five experimental conditions. In addition, data for 30 conditions of two-phase equilibria are included. INTRODUCTION The low-temperature phase behavior of gases, most of which contained helium, has been investigated in the laboratories of the Helium Activity for many years. Since 1952, experimental studies of these systems have been continuous as part of the research program at Amarillo, Tex. Because of their value to private industries interested in participating in the Helium Conservation Program, several "Open File" reports containing phase equilibria data for heliurn-bearing natural gases have already been released by the Helium Activity. A paper containing information on the general phase behavior, operating criteria and extensive vapor-liquid data for two helium-containing systems was recently published.2 Additional publications presenting experimental data on the phase relationships of various gas systems are now in process and will be available in the near future. PREVIOUS EXPERIMENTAL WORK Although the formation of multiple liquids has been reported for various systems, to our knowledge this paper is the only substantiated evidence of a vapor-liquid-liquid equilibria in a naturally occurring gas. In 1940, Vink, Ames, and others13 reported the presence of two liquid phases in a hydrocarbon system consisting of mixtures of crude oils, solvents and natural gas. Eilerts and co-workers; published data on the recombined fluids from a gas-condensate well. This condensed gas, containing approximately 76 per cent methane and 24 per cent ethane-plus, exhibited two distinct liquid phases. Weinaug and Bradley 14 observed "unusual" phase behavior in a reservoir mixture. These workers postulated that the anomalous phase behavior was due to the "imminent formation of a second liquid phase". Botkin, Reamer, Sage and Lacey 1 studied two California crude oils that exhibited multiple phases. Kohn and Kuratal0 recently reported two equilibrium liquid phases in the methane-hydrogen sulfide system. Roof and Crawfordl1 and Eakin, et a16 also have reported experiments with binary systems that formed two stable equilibrium liquid phases. APPARATUS AND PROCEDURE A U. S. Bureau of Mines Phase Equilibrium Apparatus was used in conducting this study. The apparatus and procedures employed in its operation have been previously described3 and will not be repeated in detail ill this report. Briefly, the apparatus consists of a windowed cell which can be maintained within ±0.5°F for temperatures between room temperature arid -320°F. Pressure within the cell can be maintained within 0.1 per cent of gauge reading up to 800 psig. Equilibrium vapor and liquid samples are obtained in special containers4 for analysis by a mass spectrometer. Although the accuracy of the analyzer is about ±0.1 mol per cent, the reproducibility of the phase-equilibrium apparatus is considered relatively poor. Values reported from methane and nitrogen are considered accurate to ±l.0 and ±0.6 mol per cent. Data for ethane-plus in the vapor are accurate within 0.2 mol per cent; liquid-phase data for this aggregate compolnent are accurate within 1.5 mol per cent. For helium in the vapor phase, the analytical data are accurate within 0.2 mol per cent; liquid-phase analyses for this component were obtained by the charcoal adsorption method described by Frost8 and are accurate within 0.006 mol per cent. All of these references to the accuracy of reported values are conservative estimates based upon a statistical treatment of reproducibility data obtained with the apparatus.

(Members are urged to send in for this column any notes of interest concerning themselves or their fellow-members.) Members and guests who registered at Institute headquarters during .the period Jan. 10 to Feb. 10, 1915: N. H. Emmons, 2d, Dover, Mass. R. 0. Hocking, Redruth, England. Paul W. Gaebelein, Cornucopia, Ore. G. H. Carnahan, New York, N. Y. H. D. Kinney, Easton, Pa. W. A. Wilson, Salt Lake City, Utah. W. D. McDougall, New York, N. Y. H. V. Winchell, Minneapolis, Minn. Kirby Thomas, New York, N. Y. Mrs. H. V. Winchell, Minneapolis, Minn. V. T. Lawshe, Newark, N. J. Keijiro Nishio, Tokyo, Japan. Henry S. Stebbins, who has been connected with the firm of Oglebay, Norton & Co., Cleveland, since 1892, has resigned to accept a position with M. A. Hanna & Co. of the same city. E. L. Newhouse has been chosen First Vice-President of the American Smelting & Refining Co. in place of the late Barton Sewell.

Jan 3, 1915

By W. J., Kroll

MOST people believe that rare metals are always, scarce in nature, expensive to make, and therefore useless despite some miraculous properties which might make them a cure-all. There are' some metals, which are quite frequent in nature, such as zirconium, which are called rare only because our present methods for making them are elaborate, thus forcing the manufacturer to sell them at a high price. There are also truly rare metals, such as gallium, which do not occur frequently in ores, but are easily reducible from their oxides. In these cases the price of the concentration operation is the decisive factor. The distribution of the elements in the earth's crust is no indication as to the availability of a metal; the concentration operation is the critical factor. Concentration is frequently obtained in the course of metallurgical operations for the extraction of other metals, and the rare metal may be enriched in by-products, flue dusts, mother liquors or precipitates from electrolyte purification as are indium, thallium, selenium, and tellurium. A periodic table of the rare elements may serve as a basis for discussion of their properties and to establish a program. (Table 1.)

Jan 1, 1946

By A. C. Fieldner

DURING 1939, 286 by-product coke ovens were completed and put into operation. These included 140 Witputte ovens for the Carnegie-Illinois Steel Corp., at Gary, Ind.; 61 Koppers-Becker ovens for the Ford Motor Co., at River Rouge, Mich.; 65 Semet-Sotvay ovens for the Great Lakes Steel Corp., Zug Island, River Rouge, Mich.; and 20 Curran-Knowtes ovens for the Midwest-Radiant Corp. plant at Mitlstadt, Ill. The Millstadt plant is unique in carbonizing a washed coat containing 3.50 per cent sulphur. The gas contains approximately 2500 grains sulphur per 100 cu. ft.; this is successfully removed with sodium carbonate solution by the Seaboard liquid purification process. The coke is intended primarily for use as a smokeless domestic fuel in the city of St. Louis.

Jan 1, 1941

The Colorado School of Mines, Golden, Colo. M F Coolbaugh, President. Since 1906 the School of Mines has issued a journal, known as the Quarterly of the Colorado School of Mines, which carries many articles on matters of general interest as well as other articles of a technical nature There is no regular subscription price to the School of Mines publications Anyone interested in back numbers should write and find out the conditions under which individual copies may be obtained, whether a price is set on them or whether they are free Some back numbers are not now available but efforts will be made to supply copies from the files of alumni or other friends of the School Vol 23, No. 3 of the Quarterly (July, 1928) is an index of the publications complete from July, 1906 to July, 1928. A selected list of the technical articles appearing in the Quarterly is given here: Vol 3, No. 3, Rare metals. uranium and vanadium, by H. Fleck (1909), vol 3, No 4, Tungsten in Colorado, by H R Van Wagenen, vol 4, No 3, Preliminary report of the radioactivity of the carnotite of southwest Colorado, by H Fleck and W. G Haldane (1909), vol. 8, No 1 (1913), Some recent developments at Leadville, by G. M Butler, vol 8, No. 3, Physiography of

Jan 1, 1933

By D. W. Smith

THE beta solid solution phases of the systems copper-zinc, copper-aluminum, copper-tin and silver-zinc are structurally analogous.1 R. F. Mehl and 0. T. Marzke2 have shown that the a phase upon segregating from the 0 phase in the system copper-zinc takes the form of needles lying parallel to a [111.] direction or some similar direction, such as [556], of the parent solid solution, and that the a phase upon segregating from the ß phase in the system copper-aluminum also takes the form of needles. By analogy they assume that in this case also the segregate needles lie parallel to the [111] or [556] direction in the ß lattice. The purpose of this investigation is to determine whether the structures resulting from segregation of the a phases from the respective 0 phases of the systems copper-tin and silver-zinc are analogous to those obtained by Mehl and Marzke in the systems copper-zinc and copper-aluminum.

Jan 1, 1932

By J. J. Carrigan

DURING the experimental stage in our use of the electric cap lamp in the Anaconda mines at Butte. Mont., we were somewhat concerned as to how the spitting of fuses would be carried out if we completely eliminated the open-flame light. This problem was at once given serious attention by the engineering research department and some thought was given to having all blasting done by the use of electric delays, which has been the practice for some years

Jan 1, 1936

By J. Trevor Eyton

This paper addresses some of the financial risk hedging mechanisms available to a corporation contemplating entering the mining business at a significant level of investment. The approach which I have adopted is that of a case study relating to the risk hedging aspects of Brascan Limited's acquisition of 46% of Noranda Inc., formerly Noranda Mines Limited, followed by some remarks on options open to mining companies for reducing financial risks. To appreciate the rationale for Brascan committing over (Can.) $800 million to the natural resource sector, some knowledge of Brascan's parent company, Edper Investments Ltd., is required at the outset. Edper Investments, prior to acquiring a 48% interest in Brascan, controlled Trizec Corporation, one of the world's largest property companies. Edper also was involved in the financial services sector through Continental Bank of Canada and Hees International Corporation. For some considerable time prior to Edper's investment in Brascan, Edper felt a need to provide a better balance to its portfolio of property and financial services. Brascan was rich in cash, relatively unleveraged, and with important existing holdings in natural resources and consumer products. The acquisition of a controlling interest in Brascan provided an opportunity to balance Edper's portfolio of property and financial services with world class acquisitions in natural resources, supplemented by consumer products and financial services. The end result of Brascan's activities over the last few years is illustrated by the following analysis of the book value of Brascan's assets at the end of December 1983. [Can.$% Millions _ Natural Resources81748 Consumer Products 654 38 Financial Services 157 9 Other Operations895$1,717100% ] Source: Brascan 1983 Annual Report. The large emphasis on natural resources came about from the fact that for Canadians operating mainly in Canada, natural resources were attractive. We were impressed by Canada's position in the world natural resource industry as illustrated by some of the following statistics: [CommodityCanadian Estimated Production In 1983 As % of World Total Newsprint 30 Potash 21 Uranium 18 Molybdenum 17 Zinc 17 Pulp 16 Nickel 16 Saw Logs 11 Silver 8 Copper 7 Lead 6 Gas 5 Oil3] Source: U.S. Bureau of Mines and Brascan estimates. In addition, the quality of Canada's reserves looked good to us. The polymetallic nature of many of Canada's orebodies offered a hedge against risk relating to any one metal. Put another way, the by-product metal credits offered a net operating cost advantage with respect to many of the metals mined. Our energy costs also appeared to provide Canada's natural resource industries with an advantage. We considered Canadian mining expertise as amongst the world's finest, as were the exploration equipment and technology developed in Canada. In addition, Canada offered a stable political climate and one we knew. Further, we felt the Canadian Government's future role in the industry would, on balance, be benign, partly because the Canadian content of the mining industry was very high in contrast to the petroleum industry. Granted, we could find cheaper sources of copper; however, to do so would involve venturing into regions where country risks were higher.

Jan 1, 1985

By C. Laird, C. E. Feltner

May different kinds of dislocation structures have been observed in strain-cycled metals and alloys. In order to understand their pattern and causes, an experimental program has been carried out to determine the influence on the dislocation structures of the three variables: 1) slip character of the material, 2) test temperature, and 3) strain amplitude. The results show that at high strain amplitudes cell structures me formed when the slip character is wavy, and that these are progressively replaced by uniform distributions of dislocations as the stacking fault energy is decreased. At lower strains, dislocation debris is formed which consists primarily of dipoles in wavy slip mode materials and multipoles in planar slip mode materials. Temperature merely acts to change the scale of the structure, smaller cells, and clumps of dislocation debris being associated with lower temperatures. It is shown that the results for many metals fit this pattern, which Parallels that occurring in unidirectional deformation. DISLOCATION structures produced by cyclic strain (fatigue) have been examined in a number of metals by transmission electron microscopy. These studies have produced a variety of interesting and often seemingly conflicting results. For example, different investigators have reported such structural features as cells.le4 bands of tangled dislocations,4'5 dense patches or clusters of prismatic dislocation loops, planar arrays,4'10 and various combinations or mixtures of these different structures. Most of these observations have been made on materials which were initially annealed and cyclically strained at low amplitudes resulting in long lives. Recently we have reported observations of the dislocation structures produced in copper and Cu-7.5 pct Al cycled at large amplitudes, resulting in lives of less than 104 cycles.4 These results, examined in combination with those in the literature, have suggested that a common or consistent structural pattern exists. Variations in this pattern appear to be determined chiefly by the three variables, namely, the slip character of the material,4,11 test temperature. and the strain amplitude. To verify this interpretation, we have studied [he influence of the above three variables (in different combinations) on the resultant structures in cyclically strained metals. Copper, fatigued at room temperature, was chosen as a reference state to which all other observations can be compared. The effect of slip character has been investigated by employing fcc metals of different stacking fault energy. Thus aluminum which has a more wavy slip character than copper, and Cu-2.5 pct A1 having a more planar slip char- acter, have been examined. The aluminum samples were fatigued at 210°K thus making their homologous temperature equal to that of copper at room temperature. The influence of temperature has been evaluated by examining the structures in copper at room temperature and 78°K. Finally the effect of strain amplitude was studied by looking at the structures at amplitudes giving lives ranging from 104 to 107 cycles. All of the specimens were examined at the 50 pct life level at which stage the structures have reached a stable configuration.12 I) EXPERIMENTAL PROCEDURE Strip specimens, 0.006 in. in thickness, were prepared from base elements of 99.99 pct purity or greater. Specimens were fatigued by cementing the strips to a lucite substrate which was subjected to reverse plane bending. This method of testing has been described e1sewhere.7 After fatiguing, specimens were thinned and examined in a Philips EM 200 which was equipped with a goniometer stage capable of ±30-deg tilt and 330-deg rotation of the specimen. On the basis of separate calibrations,13 allowances were made for the relative rotation and inversions between the bright-field images and the diffraction patterns. II) RESULTS AND DISCUSSION The life behavior of the materials under different test conditions is shown in Fig. 1 in the form of plots of total strain range vs cycles to failure. Comparisons of structures produced in the different materials were made at amplitudes which produced equal numbers of cycles to failure. The influence of strain amplitude on the structures produced in the reference state material (copper tested at room temperature) is shown in Fig. 2. At the 104 life level the structure produced comprises cells similar to those previously observed.3,4 They are approximately 0.5 p in diam and the cell walls are generally more regular or sharper than those produced by unidirectional deformation.14 At the 10' life level the

Jan 1, 1969

By Webster, Wm. Reuben

THE greatly enlarged demand for small sizes of seamless copper tube which has recently occurred, due particularly to the rapid growth of the electric household-refrigerator industry, has emphasized the superiority of phosphorized to tough pitch copper for the purpose of producing this commodity. In the manufacture of this material exceedingly heavy reductions by cold drawing are employed, customary practice involving as much as 90 per cent. reduction of cross-sectional area in four runs without intermediate annealing. Although this superiority has long been recognized by tube makers, no quantitative expression of it has heretofore been published. It is believed that the data herewith presented mill serve this purpose. Recent investigators are not in agreement as to the relative mechanical properties of copper containing small amounts of oxygen as compared with copper containing sufficient oxygen to produce that condition known as tough pitch. Hanson, Marryat and Ford1 found that "oxygen has a relatively small effect on the properties of copper." Johnson, on the contrary, states "it cannot be denied that it (tough pitch copper) is inferior to deoxidized copper . . . where severe mechanical manipulation is concerned." These authorities in the reports of their investigations, as might be expected from their conclusions, do not present data of a character requisite to a conclusive determination of the question.

Jan 1, 1927