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By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd's Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco's experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco's research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco's strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco's financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960's very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo's Project Development Study was completed. in January 1972. Based upon Toyo's cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo's cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco's planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950's and 1960's. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985

By H. T. Hildage

ALTHOUGH Greater New York does not bear any resemblance to a great mining district, the mining operations that are being conducted in and about the city are both extensive and interesting in character. With regard to the extent, it may be mentioned that, at. present, there is more dynamite used in New York than in any mining district in the United States; that there are under construction about 38 miles of tunnel, and that 66 miles more are projected, most of which must be constructed in the near future ; that since 1902 at least 2,000,000 tons of earth has been removed in underground work, in addition to about 3,500,000 tons that has been removed in, open-cut in connection with tunnel-work, and many times this quantity that has been removed in excavating foundations for buildings not connected with tunnel-work; and that there are to-day probably more than 5,000 men engaged in mining-work in and about New York City. These undertakings include almost every operation connected with underground work, from exploration by means of trench and boring, to the sinking of large shafts and the driving of large tunnels through every kind of ground from hard rock to soft, semi-fluid silt and quicksand. It is proposed in this paper to give a general description of some of the methods and appliances used in the opening-up ,of a "mine" in a large city, and a brief description of some of the "mines" now being developed in New York, connecting as far as possible the methods described with the particular work for which they were designed, in order to give a general idea of the

May 1, 1907

By G. Caetani, E. Burt

Jan 1, 1907

By Donald B. Gillies

TO me a graduating class of engineers constitutes one ' of the finest inspirations I can imagine. You have finished your four- year scholastic career and are starting out in competition with thou- sands of other young men from other universities to make your mark. Be- cause of your training you men are such an essential part of our present- day civilization that a great weight of responsibility rests on your shoulders, especially at this time, for this is an engineering era. Today, it is the engineer who dreams the dreams and makes our civilization better. It's the engineer who carries those dreams into realization and fulfillment. No matter where we go in business and industry, we find- engineers in key positions, charged with great responsibilities.

Jan 1, 1939

By ALFRED T. BARR

In certain areas of the New Cornelia pit, considerable secondary blasting is necessary to reduce oversized boulders, formed from primary blasting, to pieces which will pass the 41/2-cu yd dippers on the shovels. Some of the boulders are 'dobied, but when time permits they are blockholed and blasted. In most instances one hole drilled to a depth of 2 to 3 ft and blasted with 1/3 to 1/2 of a stick of powder will break a boulder satisfactorily. Blockholing is normally done by using a jackhammer of the 55-lb class, 1-in. round drill steel, and detachable steel bits, 2-in. gauge when new. A bit change is usually made after the completion of each hole. The use of light drilling equipment in blockholing is desirable, both from the standpoint of safety and ease of doing the work, and when it was seen there was a possibility of using a lighter jackhammer through the use of tungsten-carbide bits and at the same time get at least the same drilling efficiency as with the standard equipment, it was decided to test tungsten-carbide bits. The claims for long life of the bits and footage drilled before resharpening gave hopes of eliminating much of the delay time in changing bits which is unavoidable with the use of steel bits. and thus gain in actual drilling time.

Jan 1, 1949

By Leo Ranney

ANY years ago a prospector came to a Nevada town and built himself a shack. Day after day he searched the hills for gold -but he found none. He closed his shack and hurried north, where a strike had been made. Next he tried to trap the flour gold that floats down the Snake River. He panned the black sands along the Oregon coast. He ranged over the mountains and up the gulches of far-off Alaska. At last, broken in health, six years ago he came back to his old home in Nevada. There his shack still stood-nobody wanted it. One day he started a garden in the rocky soil that he owned. His spade turned up a chunk of quartz, and in that quartz were stringers of gold. He had found a rich gold vein, running right under his own house. You gas producers who have hurried to Oklahoma, Louisiana, East Texas, South Texas, West Texas, even to California to drill wildcat holes a mile or two miles deep-why not, like the old gold prospector, have a look in your own back yard? Some of your coal seams contain 20,000,000 cu. ft. of natural gas per acre.

Jan 1, 1943

F. E. Bachman, Port Henry, N. T. (communication to the Secretary*):—In discussing Mr. o.o.Laudig's paper, the Action of Blast-Furnace Gases Upon Various Iron-Ores,' I took the ground that Mesabi-ore explosions were entirely mechanical; but more observation and later experience has caused me to

Jan 1, 1905

By R. HAYDEN, H. B. HALLOWELL, H. O. Hofman

THE object of refining copper in the reverberatory furnace is to obtain a metal which will have the highest attainable degree of malleability, ductility and electric conductivity, and present at the same time a level surface when it solidifies in the mold after casting. These desirable physical properties are governed by the character of the impurities and the forms in which they are present, by the amount of cuprous oxide retained by the copper, by the quantity of gas held in solid solution, by the casting-temperature, and by the thickness of the casting. The effects of impurities, of cuprous oxide and of gases upon the mechanical properties of copper have been studied by Hampe in his classical paper "Contributions to the Metallurgy of Copper." The most recent research into the effect of metals upon the electrical conductivity of copper is that of Addicks.2 The influence of cuprous oxide upon the electrical conductivity has been investigated by Walker' and Addicks.4 The absorption of gases has received' attention by Hampe,5 Stahl 6 and Heyn.7 The effects of casting-temperature have been noted by Stahl.8

Mar 1, 1907

By Hugh S. Spence

IN MAY, 1930, G. LaBine and E. C. St. Paul, prospect¬ing round the southeastern shore of Great Bear Lake, in the North West Territories of Canada, discovered pitchblende at what is now LaBine Point. At the same time, they also found native silver in a small sheared break on an island lying off the point. Late in 1930, samples of the pitchblende were sent to the Mines Branch, at Ottawa. The material consisted of several fair-sized slabs of botryoidal pitchblende banded with a brownish quartz. A small amount of chalcopyrite was visible as small particles and fine veinlets, and the pieces were rather heavily stained a yellowish-green by secondary copper-uranium salts. Analyses were run in the Mines Branch Ore Dressing Laboratories on two samples, and small-scale concentration tests were made on one of them. The results of this work were published in a Memorandum Series report (No. 48) of the Mines Branch, in March, 1931.

Jan 1, 1932

By Frances H. Clark

DEVELOPMENTS in powder metallurgy have been disappointing in 1943. If any new part has gone into large-scale production, knowledge of it has been restricted by considerations of national security. Nor have any outstanding papers appeared to advance the theory of the subject during this period.

Jan 1, 1944

By K. J. Kutz, F. A. Nice

Drilling of the second shaft at Texas Gulf Sulphur Co.'s Cane Creek potash operation southwest of Moab, Utah, is perhaps the largest undertaking ever made by private industry in the field of rotary shaft drilling. The new shaft, known as No. 2, is located within the plant area, about 400 ft northeast of the No. 1 shaft. This location within the pillar of the first shaft allowed utilization of a great deal of in- formation gained prior to and during sinking of the original No. 1 shaft, a conventionally sunk 22-ft diam shaft 2789 ft deep. The No. 2 shaft will be used for auxiliary transportation of men and supplies, and is steel lined with a 48-in. ID casing. The top 825 ft of the shaft is in predominantly red sandstone with interbedded shales. From 825 ft to 2800 ft, which is the top of the salt beds, the rock is mostly limestone with interbeds of anhydrite and shale.

Jan 9, 1968

By Sam Tour

WHAT is a die-casting and what is the die-casting industry? From the literal translation of the words "die" and "casting"' one concludes that a die-casting is a casting made in a die. The casting may be of any metal or alloy or, for that matter, may be of some nonmetallic material capable of being cast, such as plaster of paris or glass. The die may be of any material that will take successive casts so it need not necessarily be metallic in nature. The term "die-casting," therefore, is indeed broad, though in practical usage it has come to mean the casting of metals and their alloys in metallic molds or dies. Even this limitation of the term leaves -a broad field, for castings may be made in a number of different ways. For example, the molten metal may be allowed to run into the die by gravity it may be sucked into the cavity of the die, it may be forced to take the contour of the cavity in the die by centrifiugal force, or it may be forced into the cavity under hydrostatic pressure. In England, castings made by practically all of these

Jan 1, 1935

By M. R. Geer, H. F. Yancey

Four coals were treated in the Humphreys spiral concentrator, and the products were examined by float-and-sink and screen-sizing tests to determine fundamental performance characteristics. The efficiency of the separation between coal and impurity was shown to be influenced greatly by particle size.

Jan 1, 1950

By R. Silent, N. A. Rousselot

The first producing wells completed in the Kettleman Hills arca were noteworthy for their high gas-oil ratios. As a result they became the object of criticism, and controversies arose based on their alleged lack of gas conservation. Ultimately protracted hearings ensued in the District Court of the area, and diverse rulings and subsequent modifications have been handed down affecting the permissible gas-oil ratios. When the Kettleman North Dome Association was formed in April, 1931, and the control of the major portion of the North Dome area vested therein, it was decided to produce only those wells which had a relatively low gas-oil ratio. Among the wells having the highest gas-oil ratio were the Milham Elliott No. 1 (the discovery well) and the Continental Elliott 12-8. drilled as an offset to it. Under the numbering system adopted by the Kettleman North Dome Association, these wells are now known as 88-2P and 1-12P, respectively. Milham Elliott No. 1 was originally drilled to 7236 ft., then redrilled to 7108 ft. The upper portion of the Temblor Horizon produces with a very large gas-oil ratio; production which actually consists of light crude oil with an accompanying large.volume of gas. Little was known as to the location of the Temblor formation at that time but it is now generally accepted that its top was encountered at 6180 ft., giving 928 ft. of penetration. Initial production was estimated at 4000 bbl. of oil and 80 to 90 million cubic feet of gas per day, giving a gas-oil ratio in excess of 20,000 cu. ft. of gas per bbl. of oil. This ultimately increased to a ratio of about 48,000 at the time the well was killed when it was producing about 1100 bbl. of oil and 52 million cubic feet of gas, with a flow pressure of 1200 pounds. The Continental Elliott 12-8 was drilled to a depth of 6876 ft. with the top of the Temblor at 6100, giving a penetration of 776 ft. The estimated initial production of this well was 7000 bbl. of oil and 130

Jan 1, 1933

By Tomek Ulatowski

INTRODUCTION In 1974, Industrial Miners Mexico, S.A. (IMMSA), agent for the borrowers, was the largest privately-held mining, smelting, and refining company in Mexico (accounting for 32% of Mexico's nonferrous metal and coal production in 1974), the fourth largest company in terms of sales, and the second most profitable company in Mexico, excluding government wholly-owned and operated industries. The company was engaged in the mining, smelting and refining of coal, copper, fluorite, gold, lead, silver, zinc and related by-products for domestic consumption and export. A combination of favorable factors led IMMSA to propose an investment plan amounting to US$286 million for 1974 through 1978, of which US$150 million was to be financed. These factors included: Substantial profits in 1973 and 1974 Positive near-term outlook for metal prices Success of the reinvestment program in increasing productivity Substantial additions to proved reserves during 1973-1974 and Fiscal incentives provided by the Mexican government to stimulate investment in the mining industry. The primary purpose of the investment program was to construct a new electrolytic zinc refinery and to expand and modernize many of the company's existing mining and refining facilities. THE BORROWER Company History Compania Miners Mexico, S.A. was incorporated in the city of Monterrey in 1918 as a wholly-owned subsidery of ASARCO Inc. (formerly American Smelting and Refining Company, New York) for the purpose of mining and processing non-ferrous metals and related products. In compliance with the Government's Mexicanization program, ASARCO Inc. divested itself of 51% of its equity in Compania Miners Asarco, S.A. on June 30, 1965. Subsequently, ownership in the divested share was apportioned as follows: 15% ownership in Compania Miners Asarco, S.A. to a group of private investors, and 36% in trust for subsequent public sale. The company's name was changed to Asarco Mexicana, S.A. in 1965. Mexican ownership in Asarco Mexicans, S.A. was increased to 51% in 1967, following the purchase of the 36% share ownership held in trust, and then to 66% in 1974 when ASARCO Inc. divested itself of an additional 15% of its holdings in Asarco Mexicans, S.A. Following its 1974 divestiture of 15% of Asarco Mexicans, S.A., ASARCO Inc's ownership in Asarco Mexicana, S.A. was reduced to 34%. In 1974, the company changed its name for the second time to Industrial Miners Mexico, S.A. (IMMSA). Fiscal Agreement IMMSA entered into a fiscal agreement with the Mexican government in 1969. The agreement, which was renewed in 1974, provided for 100% of the production and export tax corresponding to the federal government with a minimum of 50% of the amount refunded to be reinvested in fixed assets. Further, the agreement permitted the company to

Jan 1, 1985

By J. S. Owens, R. W. Marsden, J. W. Emanuelson, R. F. Werner, N. E. Walker

The iron ores of the Mesabi Range occur in a 340 to 750-foot thick, Precambrian cherty iron formation termed "taconite." For about 65 years, extensive natural iron ore bodies were mined, and the ores either shipped as a direct ore or processed by gravity methods to a shipping grade iron ore. Since 1956, magnetite taconite ores, occurring in magnetite-rich horizons in the Biwabik iron formation, have been commercially concentrated and agglomerated. The transition from natural ores to concentrating-grade ores is progressing rapidly so that, in the near future, a major percentage of the iron ore shipped from the Mesabi Range will be as iron ore pellets produced from taconite. Natural iron ores of the Mesabi Range occur in the Biwabik formation as trough ore bodies in elongated channels and as irregular and tabular deposits in fractured areas associated with faults and folds. Ore bodies range in size from a few thousand tons to hundreds of millions of tons and may occur in any part of the iron formation. In some areas of strong ore development, ore was formed from the hanging-wall argillite to the footwall quartzite. The natural ores and beneficiating-grade natural crude ores were formed by the oxidation of the iron minerals, magnetite, greenalite, stilpnomelane, minnesotaite, and siderite, to hematite and goethite and by the removal of much of the silica in the cherty quartz and in the associated silicates by leaching. The ores are believed to have formed by the oxidizing and leaching action of surface waters. Magnetite taconite ores occur as stratigraphic zones in the Biwabik formation where it contains sufficient magnetite to be concentrated profitably, by magnetic methods, to give a magnetite concentrate that is agglomerated into a high quality product. Unoxidized taconite has an extensive distribution away from and between channels of oxidation and leaching but only a part of the unoxidized taconite is of ore grade. Two general types of magnetite taconite ore occur: ( 1) magnetite taconite of the Main Mesabi Range, generally west of Mesaba, which is composed of magnetite associated with cherty quartz, greenalite, stilpnomelane, minnesotaite, and carbonates and (2) magnetite taconite of the Eastern Mesabi, generally east of Mesaba, composed of magnetite associated with quartz, cummingtonite, actinolite, ferrohypersthene, hedenbergite, fayalite, hornblende, pyroxene, garnet, and biotite. The Mesabi taconite is a metasediment derived from an iron- and silica-rich chemical sediment that has been regionally metamorphosed and, on the eastern end, additionally metamorphosed by the Duluth Gabbro Complex.

Jan 1, 1968

By DR. RICHARD RATHBUN

(Washington Meeting, May, 1965.) THE remarks of Dr. Rathbun in his address of welcome render it unnecessary that I dwell either upon the history or aims of the National Museum, and enable me to proceed at once with a brief descriptive outline of the Department for which I am responsible, and this with particular reference to that division devoted to applied geology. The amount of geological material brought together prior to 1876, under the various Congressional acts quoted, was, though valuable, comparatively small. It consisted mainly of the collections made by Professor J. D. Dana and his assistants during the Wilkes Exploring Expedition; by the various geologists accompanying the surveys of the Pacific railroads in 1854-55; the Surveys West of the 100th Meridian under the direction of the Engineering Corps of the Army; the United States geological surveys under direction of Dr. F. V. Hayden ; and the various Land Office surveys. Prior to 1873 there were no paid assistants to care for these collections. They were studied, if studied at all, by " collabrators," so-called, several of whom had offices and even sleeping apartments in the Smithsonian Institution. In the list of these collaborators are found such names as Conrad, Cope, Gabb, Leidy, Lesquereux, Meek, and Newberry. The building now occupied by the National Museum was designed primarily to make room for the great mass of material secured in 1876 at the close of the Centennial Exposition in Philadelphia. As completed in 1880, it afforded opportunity for expansion and incidental organization on much more practical basis than had previously existed. This found expression in the creation of numerous departments with salaried officials to take charge of the various collections. With the appointment of Dr. George W. Hawes to the position of Curator of Geology and Mineralogy, in 1881, and Dr.

Jul 1, 1905

By Charles R. Keyes

Discussion of the paper of Charles R. Keyes, Bi-Monthly Bulletin, No. 19, January, 1908, pp. 1 to 31. BERNARD MACDONALD, Guanajuato, Mexico (communication to the Secretary*) :-Mr. Keyes's paper is very interesting to me because of my personal experience with the development of the ore-deposits of Lake Valley. Seeing that many of the important facts connected with the early history of the development of these mines are either now unknown, or have become more or less distorted, and thinking that it would be interesting as well as valuable to have these recorded as a historical supplement to Mr. Keyes's elaborate paper, I present the following narrative: In February, 1881, soon after the Atchison, Topeka & Santa Fé railroad made connection with the Southern Pacific at Denting, N. M., the Lake Valley properties were brought to the attention of New York and Philadelphia capitalists by John A. Miller, of Silver City, N. M. At that time silver was $1.10 all ounce and silver-mining was very attractive. Vast fortunes were being made in Leadville and other Colorado camps, and Tombstone was pouring out its millions. Lake Valley, like all' other mining-camps in their early history, had its drawbacks, but the railroad, then passing within 14 miles of it, mitigated many of these. The camp lay in the foot-hills of the Black range, in which the Apaches had their stronghold, and raided, when it suited their convenience, the surrounding country, killing the prospectors and pioneer settlers and stealing their cattle. This band of Indians was joined by the outlaws and desperadoes from the frontiers of Texas, Arizona, and Mexico, who collectively defied the United States soldiers, restrained, as the latter were, by the mollycoddles from the East. The brutality of the Indian raids through Arizona and New Mexico in those days would scarcely be believed now, but they stain in deep

Feb 1, 1909

By S. H. Chauvenet

HARRISBURG is situated on the Pennsylvania Railroad, one hundred and five miles from Philadelphia, two hundred and forty-eight miles from Pittsburgh, and ninety miles from Baltimore, and has running through it the Pennsylvania, Northern Central, Philadelphia and Reading, and Cumberland Valley Railroads, and the Pennsylvania Canal. Surrounded by a thickly settled farming country, from which to draw native labor, within easy distance of anthracite and bituminous coal, with ores and limestone near at hand, and with the Susquehanna River as a never-failing water supply, Harrisburg has advantages for manufacturing which warrant the investment of the capital that has already been made, and has a future as a manufacturing city second only to Pittsburgh and Philadelphia. THE PENNSYLVANIA STEEL COMPANY, L. S. BENT, SUPERINTENDENT. The works of this company, the largest in Harrisburg, lie between the Pennsylvania and the Philadelphia and Reading Railroads, on. the Pennsylvania Canal, and are essentially devoted to the manufacture of Bessemer steel rails. Capital stock, $2,000,000; invested in business, $5,000,000; wages per month, $80,000; employs 2000 men; capacity, 100,000 tons of rails per year, which is being increased to 130,000 tons. The plant, as it now stands, comprises five Bessemer converters, two 7-ton and three 8-ton converters, two 15-ton open-hearth furnaces in operation, and two 30-ton open-hearth furnaces in course of construction, one blooming mill, one rail mill, seven steam hammers, two blast furnaces in operation, two blast furnaces in course of construction, foundry, pattern $hop, machine shop, blacksmith shop, and frog shop, and merchant mill in course of construction. Bessemer No. 1 was built in 1865, with two 7-ton converters, 2 spiegel cupolas, 3 feet diameter, and 3 iron cupolas 6' 6" diameter,

Jan 1, 1882

Swedish mining companies are noted for their excellence in underground mining practice, and this classification certainly has to be applied to their design of crushing plants also. All these mines are highly mechanized with either rail or truck haulage, and typical examples of underground crushing plants designed for each of these haulage practices are presented here. Almost all the primary breakers are of the overhead eccentric, single- toggle jaw crusher type with units as large as 55 by 71 in. (1400 by 1800 mm) being used. In contrast to North America, where jaw crushers are almost always preceded by apron or vibrating feeders, many of the. Swedish crushers are choke fed with the dump pocket being located directly above the crusher. This practice results both from excellent knowledge of the ore characteristics and the ability of the overhead eccentric crusher to also act as a feeder. An excellent example of a crushing plant of this design is shown by the sketch of the LKAB Alliansen Crusher No. 64 at Malmberget, Sweden. Forty-six st (42 mt) trucks dump magnetite ore into a 91.6 cu yd (70 m3) dump pocket mounted over a 55 by 71 in (1400 by 1800 mm) Morgards- hammar overhead eccentric crusher using a 180 hp (132 kw) motor and belt drive. Crushed ore at 10 in. (250 mm) size drops onto an air- operated tipping chute which diverts the ore to either of two 1962 cu yd (1500 m3) pockets equipped with 3 ft 11 in. by 7 ft 11 in. (1200 by 2000 mm) Schenk vibrating feeders. Dust is drawn into a wet scrubber and exhaust air is combined with mine exhaust air. Because the crusher must be assembled underground, a 45/5 ton crane is installed over the crushing installation. A crusher above ground such as at Sacaton can easily utilize a smaller crane. Capacity of this 'most interesting crushing installation is 1653 st (1500 mtph) .

Jan 1, 1978