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By Byron W. Cheever

At the meeting of the Institute held in St. Louis, in October, 1886 (Transactions, xv., 448), I presented a paper upon the above subject. From the well-known action of certain solvents on phosphide and phosphate of iron, the conclusion was then reached, founded on analyses, that phosphide and phosphate of iron must be present in all iron. But this conclusion was based upon the reactions obtained in the analyses of iron phosphide and phosphate, in which the phosphorus existed in conditions different from those found in commercial iron. In the former, the phosphorus is concentrated ; in the latter, diffused. This fact left a reasonable ground for doubting the existence of phosphoric acid in commercial irons. Some direct method was therefore sought which would prove its presence. After investigating the subject for some time, I came to

Jan 1, 1888

By C. F. Davan, C. T. Houseman

The news pages of MINING ENGINEERING and other trade publications have for the past two years carried a great many items about new developments in phosphate and potash, reflecting the surge in world consumption of these products as fertilizer. Today the question often arises concerning how much growth can be further anticipated by the phosphate and potash industries. To answer this question, a 15-year projection of world fertilizer consumption in terms of the three basic plant food nutrients-nitrogen, phosphate and potash-has been prepared. Two of these, phosphate and potash, are basic products of the mining industry. Nitrogen, once an important product of mining, is now mainly a chemical product. Another mineral, sulfur, although not a primary nutrient, depends on the fertilizer manufacturing industry for the bulk of its market. In crop year 1962-63, there began a startling in- crease in world fertilizer consumption. In that year, consumption increased by about 10% and in the following year by 10-12%.

Jan 12, 1965

By M. Schussler, J. S. Brunhouse

Arc-melted and electron-beam melted tantalum in the cold-worked and the recrystallized conditions showed high strength, good tensile ductility, and excellent notch toughness down to 321°F. Arc-melted material, containing moderate amounts of interstitials, possessed better short-time strength than higher purity electron-beam melted material up to 2000°F. Cold-working substantially strengthened arc-melted tantalum, whereas electron-beam melted material exhibited a low work-hardening rate and possessed better formability characteristics. With identical compositions and microstructures, the mechanical properties of melted tantalum and uacuum-sintered tantalum should be similar. TANTALUM metal usage is increasing rapidly in a number of applications. The outstanding chemical corrosion resistance of tantalum accounts for its applications in chemical processing equipment for severe service conditions and for surgical uses in the medical field. The largest present requirements for tantalum are in the electronics industry, where its special properties are useful in capacitors. The high melting point (5425°F) and inherent ductility of tantalum also suggest that tantalum and tantalum-base alloys might offer an excellent combination of high strength at very high temperatures and good fabri-cability. Pure tantalum has been used in significant amounts in parts requiring high-temperature strength, such as heating elements, reflectors, and heat shields in high-vacuum high-temperature furnaces and in electronic tubes. A few very promising tantalum-base alloys have been developed and are being investigated extensively. The possibilities for tantalum as a high-temperature structural material, either unalloyed or alloyed, will become better defined when more extensive mechanical property data are known. pughl measured the tensile properties of vacuum-sintered tantalum in sheet form for the temperature range of 78" to 1500°K (-321' to 2240°F), and Bechtold reported data obtained at low temperatures.' Drennen3 determined creep and stress-rupture properties of both vacuum-sintered and arc-melted tantalum sheet at 1200 °F. Some additional data on the mechanical properties of tantalum at temperatures up to 5000 °F have been summarized elsewhere.4'5 It is probable that large structural shapes of tantalum, either unalloyed or alloyed, can most readily be produced from ingots prepared by melting. Consequently, the present investigation was undertaken to determine more extensive short-time mechanical properties of tantalum metal consolidated by melting. EXPERIMENTAL PROCEDURE Melting and Fabrication—Two tantalum ingots were utilized in this study to obtain information on the effect of interstitial elements on mechanical properties. Both ingots were melted from Union Carbide Metals Co. tantalum dendrites.

Jan 1, 1961

By G. D. Tranter

THE importance of ladle and teeming practice and its relationship to the yield and quality of the product has focused considerable attention on this phase of open-hearth operation. Inherently bad steel cannot be perfected by manipulation during teeming, but through the proper handling of "off heats" serious losses, which in many cases arise, can be greatly minimized. Conversely, good steel can be ruined as a result of poor workmanship in the pit, and rendered unsuitable for application to orders where exacting surface and physical requirements are essential. Sufficient evidence has been secured to warrant careful investigation of pit operations when an abnormal number of basic defects develop in the semifinished product or are found on the inspection table. This paper is written from the standpoint of the problems involved in making satisfactory ingots for sheet rolling. Furthermore, since rimming steel is almost universally used for manufacture of sheet, the data presented herein refer particularly to that type of steel. Going back some 30 years in open-hearth history, the word "pit" properly described the hole into which the ladle was lowered to receive the metal tapped from the furnace. The working space was necessarily limited, and the disposal of slag and metal overflowing the ladle or lost because of breakouts presented a serious problem. The equipment, of course, was rather crude in the light of present-day development. Often no ladle stands were provided, the ladle being hung on the crane beneath the runner. When delayed taps occurred, the ladle was often held in position for many hours, thus tying tip pit operations and causing delays to adjacent furnaces. Because of crowded conditions, slag thimbles were not used and a network of cast-steel triangles and old tapping bars, placed before the heat was tapped, was the means for removing slag from the hole. Furnaces of different capacities were used

Jan 1, 1935

By Donald Ingvoldstad, Harold E. Lee

At Bunker Hill the original charge storage and preparation system was installed in 1917 to accommodate lead-silver gravity mill products. Only minor tonnages of wet fines such as vanner and flotation concentrates were received. Charge flux and diluent requirements were provided by an ample supply of siderite middlings and coarse limerock. While oversize material was crushed through Y4-in., the use of roll crushers in series resulted in a more or less granular, free-running charge of adequate porosity. Under such conditions, receipts could be proportioned directly from receiving bins, and suitable blending was obtained by passing the resultant layered composite through a small Stedman disintegrator. This elementary system served well for production and smelting of an extremely lead-rich sinter, in the low column blast furnace. Here sinter physical quality is less critical, and appreciable quantities of raw flux and oxidized ore may be charged directly to the blast furnace without seriously impairing furnace capacity.

Oct 1, 1956

By Herbert Herman, M. E. Fine

THE first decomposition product of a supersaturated aluminum-rich A1-Ag alloy at low tempera- tures is Guinier-Preston zones.'-, The zones are ideal and each consists of a spherical shaped silver-rich cluster about 16 A in diam syrounded by a silver-poor shell approximately 72A in diam.' The composition of the two regions is not known with certainty., After quenching from the solution anneal, these zones form rapidly on aging at temperatures as low as -30°C.5 The rate of zone formation increases with aging temperature; the activation

Jan 1, 1961

Jan 1, 1913

By George Rupp

THE Sunrise iron mine of The Colorado Fuel and Iron Corporation is in Platte County, Wyoming, about 110 miles north of Cheyenne. It is served by the company-owned Colorado and Wyoming Railway, which connects with the Chicago, Burlington and Quincy and the Colorado and Southern railways at Guernsey, Wyoming, a distance of 6 miles from the mine. The original Sunrise claims were staked mainly by United States Army officers and soldiers stationed at old Fort Laramie, because of small showings of copper in the Carboniferous limestones that form a horizontal capping overlying the Huronian iron ore. A small copper smelter was operated for about three years at Fairbanks, now an aban-doned town on the North Platte River. As many of the copper shafts and test pits near the present Sunrise mine were deepened, they pene-trated the capping and encountered iron. ore or gray sericitic schist, and were abandoned. Evidence of an early interest in iron ore was found when the Chicago claim was stripped for mining. A narrow, winding crevice was dis-covered, which led downward 20 ft. through the capping to the underlying soft red hematite, in which a room 10 by 14 by 7 ft. had been excavated. Stone hammers and wedges and a few rusted pieces of iron were found on the floor, and the evidence is conclusive that the excavation was used up to rather recent times by Sioux Indian medicine men, to provide war paint.

Jan 1, 1939

By L. R. Plitt, E. O. Lilge

Tests carried out with both kaolin and silica slurries show that flocculants of the polyacrylamide type can be used to improve the thickening performance of hydrocyclones. This thickening improvement demonstrates that contrary to previously held theories, flocs can be formed which are capable of resisting the shear forces in a hydrocyclone. For the 1.25-in.-diam cyclone used, optimum thickening occurs when the flocculant solution is injected into the slurry stream at or near the feed inlet. Hydrocyclones offer many distinct advantages over gravity thickeners. These advantages include simplicity, low initial and operating costs, small space requirements, and flexibility of operation. In spite of these advantages hydrocyclones have not been widely used as thickeners. The main reason for their lack of application is that hydrocyclones are unable to efficiently remove semicolloidal particles (less than 5 microns) from the suspending solution. In gravity thickeners, the fine particles can be induced to form particle aggregates, or flocs, which have the settling characteristics of large particles. In the hydrocyclone, however, it was always assumed that the existence of shear would prevent the formation of flocs.1-3 Thus, if no floc structure is retained, the thickening hydrocyclone must be designed so that its separation size is below the size of the smallest particle to be recovered. To obtain a very small separation size requires the formation of very high centrifugal forces, which necessitates the use of small-diameter cyclones. Small hydrocyclones have, in turn, very low throughput capacities which render them impractical for many industrial thickening applications. Thus, if the effects of flocculation cannot be utilized, the usefulness of hydrocyclones as thickeners remains limited to pulps which contain no very fine particles. It is well established that most substances acquire a surface electric charge when brought into contact with an aqueous medium. The repulsive interactions between similarly charged particles act to prevent flocculation. One method of flocculating a dispersion is to neutralize the repulsive surface charges by the addition of an electrolyte. The reduction of the electrostatic surface charge (Zeta potential) then permits the universal van der Waals attractive forces to operate between the atoms of the various particles and form particle aggregates. The lime additions used by thickener operators promotes flocculation by this mechanism. A second method of flocculating a dispersion is by the addition of long-chain macromolecules. In this case flocculation is brought about by a bridging mechanism in which the molecules are adsorbed with part of their length on two or more particles, thus forming a molecular bridge between the particles.4,5 The molecules also form bridges between themselves when a single particle is bonded to several polymer molecules. The type of bonding between the flocculant molecule and the particle may be hydrogen bonding, chemical bonding, or electrolytic attraction.6 The flour and glue which are used as thickener additives are believed to promote flocculation in this manner. In the past decade synthetic long-chain polymers with extremely high flocculating capabilities have been developed. The flocs formed by these new polymeric flocculants are larger and more shear-resistant than those formed by the presence of electrolytes.7 The advent of these flocculants raises the question: Are the flocs formed by these synthetic polymers stable enough to resist the liquid shearing forces in a hydrocyclone? The investigations reported in this paper were carried out in order to provide some answers to this question. EXPERIMENTAL WORK For the bulk of the test work a 5% slurry of commercially available kaolin with an average particle size of 5 microns was used. An initial evaluation of the available flocculants was carried out to determine which flocculant formed the most shear-resistant flocs. A combination of the techniques used by Healy7 and Booth8 was used for this purpose. This initial study revealed that the neutral high-molecular weight polyacrylamides produced the most shear-resistant flocs. One of these flocculants, Separan MGL*, was selected and then used for all the hydrocyclone tests. The flocculant was dissolved in water and added to the hydrocyclone as a dilute solution.

Jan 1, 1968

By R. A. Bell, R. Schultz, P. G. Hallof

The Ballyvergin area is located in County Clare on the southwest coast of Ireland. It is one of six areas in County Clare in which mining operations were carried out during the last century. The ores mined were high grade Cu-Pb-Ag deposits in the form of small fracture fillings and gash veins in the lower Carboniferous limestones. The zone of primary economic interest is situated on the north limb of a geosyncline which plunges moderately to the southwest. The zones of mineralization previously mined were associated with local structures and folds, and the initial geophysical investigations took the form of reconnaissance induced polarization measurements around, and between, the old mines. This work located an anomaly which, on drilling, resulted in a small extension of the Pb-Cu ore at the Ballyvergin mine. However, a potentially more important zone of mineralization resulted from the drilling of another IP anomaly near Ballyvergin. This wide anomaly was found to be a domal shaped deposit of disseminated chalcopyrite located at a depth of more than 100 ft. The deposit is controlled by local folding in the sediments and is of a type previously unknown in the area. More IP investigations are under way to locate other deposits of the same type. The Ballyvergin area is located in County Clare, about 35 miles northeast of Shannon Airport, near the Atlantic west coast of Southern Ireland (Fig. 1). Interest in the area stems from a number of occurrences of small, but high grade, Pb-Ag deposits. From the summer of 1960 to the spring of 1961, Irish Base Metals carried out a comprehensive exploration program on a 38-sq mile concession in east-central County Clare in an attempt to locate additional deposits of this type. Field operations consisted of geologic mapping, geochemical soil and stream sampling, geophysical surveying and diamond drilling. The geophysical program consisted primarily of detailed induced polarization (IP) surveys in the general vicinity of old mine workings, supplemented by electromagnetic and self-potential investigations. Subsequent diamond drilling of a well defined IP anomaly close to the old Ballyvergin mine disclosed a sizeable deposit of low grade disseminated copper, a type of deposit previously unknown in this area. REGIONAL GEOLOGY Topography: The topography is of the Karst type with low regional relief. The northern parts of the area are covered almost completely with glacial deposits including a large number of drumlins. Elsewhere the overburden is patchy and only moderately deep. A close network of roads makes every part of the area readily accessible, and rail and harbor facilities are available nearby — Fig. 2. Stratigraphy: The area was mapped on a reconnaissance basis by the Geological Survey of Ireland during the latter part of the 19th century at scales of 1 and 6 in. to the mile. Mapping is complicated in

Jan 1, 1962

By Stanley B. Roboff

Throughout the world nuclear power re- actors are being designed and constructed as the energy source for stationary power plants. They are built to power submarines, surface ships, and long-range aircraft and to provide small package power plants that can be set up with relative ease in outlying areas. Regardless of type, most of these plants are designed to operate at the highest permissible temperatures and with the greatest possible burn-up of fuel. On paper it is now possible to design a nuclear power plant that will out-perform all existing types of power-generating plants, and at costs which are attractive. Such plants, however, are not now being built, nor will they ever be built, unless major engineering advances are made in the realm of reactor materials. The reason for this is straight- forward enough. Although it is known that huge quantities of energy can be generated in nuclear fuels within short periods of time, as yet there are no construction materials capable of withstanding the severe conditions that would exist within a power reactor operating with ultrahigh output.

Sep 1, 1956

By R. L. Perrine

This paper presents results obtained by consider ation of unstable miscible displacement within a porous medium as a quasi-turbulent displacement process, that is, a process characterized by fluctuations around a simpler, mean flow behavior. The instability usually results from the miscible displacing fluid having a viscosity lower than that of the displaced fluid. Such instability is evidenced in suitable experiments by the presence of viscous fingering. A unified theoretical relationship applicable to both stable and unstable displacement is derived. Parameters in the theory are obtained by empirical means. Although the theory describes an idealized conceptual model, agreement with experiment is quite reasonable up to moderately adverse viscosity ratios, such as 17:1. INTRODUCTION Many experimental studies of miscible displacement in porous media have been conducted with prediction of reservoir displacement efficiency as the ultimate objective. Most such studies have utilized lower displacing than displaced fluid viscosity, scaled to potential reservoir fluid pairs. Theoretical approaches have been largely limited to unit viscosity ratios, however, in spite of the necessity for an understanding of the mechanism of the unstable, adverse viscosity ratio displacement process. An obvious reason is the difficulty of describing in mathematical form the viscous fingering characteristic of these conditions. Observation of experiments conducted with dyed fluids in transparent systems suggests an analogy between unstable miscible displacement and turbulent flow in a pipe. In both cases there are fluctuations around a simpler, mean flow behavior. An important difference is that flow behavior of interest in the porous medium is entirely transient, contained within a transition zone between displacing and displaced fluids. Transient behavior complicates description in that coefficients in the equations become variables rather than constants. In the study reported here, the analogy with turbulent flow has been used in treating unstable miscible displacement as a quasi-turbulent displacement process. The purpose has been to derive, even if restricted to an idealized conceptual model, a unified theoretical relationship applicable to both stable and unstable displacement. A relationship meeting these specifications up to moderately adverse viscosity ratios, such as 17:1, is presented. One fluctuation parameter in the theory and dispersion coefficients are obtained by empirical means. The idealized theory is compared with experimental results. UNSTABLE MISCIBLE DISPLACEMENT AS QUASI-TURBULENT DARCY FLOW The miscible displacement of one fluid by another within a porous medium is considered in this study. Flow conditions are such that Darcy's law is applicable. It is further assumed that, by the stability criterion proposed by perrine,1 initial flow conditions lie well within the regime of instability. Thus substantial viscous fingering is assured. We wish to show how this flow regime can be represented as quasi-turbulent. That is, the Reynolds number for the established flow conditions is below that for inertial or turbulent flow within a porous medium, and lies within the regime for which Darcy's law is valid. Yet flow behavior can be described as the combination of some relatively simple average result, and characteristic fluctuations that are superimposed on the simpler behavior. Stated another way, flow behavior includes the movement of layers of fluids with different velocities past or over one another. Such descriptions are characteristic of turbulent pipe flow. The fluctuations in the present case are a direct consequence of the local viscous fingering which accompanies the unstable displacement process. Should displacement become stable, fluctuations would die out. It is of particular importance to note that fluctuations such as these can interact in a way that contributes to material transport by the basic flow. The basic transport equations required for engineering calculations must be modified to reflect this fact.

By A. A. Venghiattis

A rational approach to the selection of the appropriate perforator to use in each specific zone of an oil well is presented. The criteria presently in use for this choice bear little resemblance with actual down-hole condilions. These environmental conditions affect the elastic properties of rocks. One of these elastic properties, acoustic velocity, is suggested as the leading parameter to adopt for the choice of a perforator because, being currently measured in the natural location of the formation, it takes into account all of the effects of compaction, saturation, temperature, etc., which are overlooked in the laboratory. Equations and curves in relation with this suggestion are given to allow the prediction of the depth of perforation of bullets and shaped charges when an acoustic log has been run in the zone to be perforated. INTRODUCTION When an oil company has to decide on the perforator to choose for a completion job, I wonder if it is really understood that, to date, there is no rational way of selecting the right perforator on the basis of what it will do down-hole. This situation stems from the fact that the many varieties of existing perforators, bullets or shaped charges, are promoted on the basis of their performance in the laboratory, but very little is said on how this performance will be affected by subsurface conditions such as the combination of high overburden pressure and high temperature, for example. The purpose of this paper is to show the limitations of the existing ways of evaluating the performance of perforators, to show that performances obtained in laboratories cannot be extended to down-hole conditions because the elastic properties of rocks are affected by these conditions and, finally, to suggest and justify the use of the acoustic velocity of rocks, as the parameter to utilize for the anticipation of the performance of a perforator in true down-hole environment. EVALUATING THE PERFORMANCE OF A PERFORATOR It is natural, of course, to judge the performance of a perforator from the size of the hole it makes in a predetermined target. Considering that the ultimate target for an oilwell perforator is the oil-bearing formation preceded in most cases by a layer of cement and by the wall of a steel casing, the difficulties begin with the choice of an adequate experimental target material. For obvious reasons of convenience, the first choice that came to the mind of perforator designers was mild steel. This is a reasonable choice for the comparison of two perforators in first approximation. Mild steel is commercially available in a rather consistent state and quality, and is comparatively inexpensive. The trouble with mild steel is that it represents a yardstick very much contracted; minute variations in depth of penetration or hole diameter and shape may be significant though difficult to measure. The penetration of projectiles in steel being a function of the Brinell hardness of the steel (Gabeaud, O'Neill, Grun-wood, Poboril, et al), it is often difficult to decide whether to attribute a small difference in penetration to a variation on the target hardness or to an actual variation on the efficiency of the projectile. Another target material which has been widely used for testing the efficiency of bullets or shaped charges in an effort to represent a formation—a mineral target as opposed to an all-steel target—is cement cast in steel containers. This type of target, although offering a larger scale for measuring penetrations, proved so unreliable because of its poor repeatability that it had to be abandoned by most designers. The drawbacks of these target materials, and particularly their complete lack of similarity with an oil-bearing formation, became so evident that a more realistic target arrangement was sought until a tacit agreement was reached between customers and designers of oilwell perforators on a testing target of the type shown on Fig. 1. This became almost a necessity about seven years ago because of the introduction of a new parameter in the evaluation of the efficiency of a perforator, the well flow index (WFI). The WFI is the ratio (under predetermined and constant conditions of ambiance, pressure and temperature) of the permeability to a ceitain grade of kerosene of the target core (usually Berea sandstone) after verforation. to its vermeabilitv before perforation. The value of this index ;or the present state if the perforation technique varies from 0 to 2.5, the good perforators presently available rating somewhere around 2.0 and the poor ones around 0.8, There is no doubt that, to date, the WFI type of test is by far the most significant one for comparing perforators. It is obvious that a demonstration of a perforator

Discussion of the paper of GEORGE S. Rice, presented. at the Pittsburgh meeting, October, 1914, and printed in Bulletin No. 94, October, 1914, pp. 2459 to 2492. WILLIAM GRIFFITH, Scranton, Pa.-I notice in the discussions and literature that emphasis is placed on rock dust, shale dust, and limestone dust, and I infer that these different. sorts of rock are ground up to produce this dust. -Is that right? MR. RICE.-That is correct, but we do not have to grind the limestone dust we are using in the experimental mine, as that is obtained from a quarry, and is used just as it comes; we can get it very cheaply, as it is a by-product of the quarries. MR. GRIFFITH.-Have any experiments been made with ordinary dirt out of the fields; could not that be used as ground dust? MR. RICE.-If you dry it and powder it enough so it will float in a, strong air current it might be all right for the barriers, but if it is damp there will be a tendency for it to mat together; then it would be quite useless for making a dust cloud. There might also be another disadvantage if used through the whole mine, if it had very much free silica in it, which is bad for the lungs. Limestone and selected shale dust would not affect the health of miners. MR. GRIFFITH.-In order to do very much good with any of those barriers, they ought to be rather extensively used throughout the mines, and there are few mines that have facilities for grinding up this rock into such a fine dust. If the ordinary earth from a plowed field could be used, even if it were not quite so good, it is more accessible and very much cheaper; therefore, in using it, with the universality of the supply through-out the country, it would tend to stop explosions. MR. RICE (communication to the Secretary*).-In closing, it is well to again emphasize that I do not advocate barriers being a "cure-all" for explosions. It will be generally agreed that prevention is best, not only by means of improved methods of using explosives, and ventilation to prevent accumulations of firedamp, but also by either thoroughly wetting the dust throughout the mine, or else so treating it with rock dust or other inert dust that an explosion cannot start. From my observations I believe that rock dusting. is a practicable method, and has the merit of visibility, and remaining effective for considerable periods, whereas the watering method has to be daily followed up, and if neglected for a short period the mine may become in a dangerous condition. The Germans

Jan 4, 1915

By R. H. Terhune

THE enormous production of pig-iron, together with the many difficult and interesting problems with which its manufacture is fraught, 11as secured to this industry the exclusive attention of scientists with reference to the chemistry of iron, while some of the minor departments of its metallurgy have suffered neglect. Particularly is

By Robert B. Parsons

Since 1978, new tax measures affecting the mining sector have been relatively favourable, evidencing a moderately enhanced government awareness and sensitivity towards the industry's concerns. Today, although the industry continues to face a complex and sometimes capricious tax system, a wide range of tax provisions offer some excellent opportunities to the industry. This paper examines the basic features of the present tax environment, discusses some of the more important changes of recent years, and comments on the outlook for mining taxation in Canada.

Jan 1, 1985

By Gerard A. Flierman

INTRODUCTION There is a lot of discussion about the relative merits of sinter and pellets as components of a BF-burden. Many people claim that sinter is to be preferred and that the percentage of pellets in the burden must be restricted to 20%. During BF-trials in IJmuiden various amounts of pellets having various basicities were tried. It was concluded that there were no significant differences in furnace performance. Consequently the choice between sinter and pellets must be based on the local manufacturing costs (1). Table 1 gives a summary of the pellet experience in IJmuiden. [ ] Because the BF-trials were relatively short, a survey of published BF-operating data has been undertaken to investigate if differences between a sinter and pellet based BF- practice could be found. The comparison of BF-operating results has been restricted to coke rate and productivity.

Jan 1, 1977

By R. V. Ramani, Y. J. Wang, R. Mishra

Abstract-The validity of the concept of mine resistance in ventilation systems is examined. Mine resistance is the proportionality constant relating the head generated by a fan and the quantity flowing through it when the fan is connected to a mine circuit. It is the total effect of all branches in the mine ventilation circuit. Its importance lies in the fact that for new mine projections, and in the extensions of existing mines, ventilation calculations are usually based upon adjustments of the mine

Jan 11, 1978

By Leons Kovisars

Introduction Competitive analysis is the collection and evaluation of data on a product, a product line or on an entire industry. Much of the focus of competitive analysis centers on production volume and the price targets of the competitors. In actual practice capacity may be used in place of production volume. Similarly, unit production costs and individual producing units - mines, mills, smelters, refineries - may be the targets of the analysis. The purpose of competitive analysis is to provide information for strategic planning. The analysis will locate the position of the company in the industry and define the competitive margin -- or lack of a margin - between the company and other producers. The analysis can show the current situation and may be expanded to examine the outlook for the future. The forecast option is particularly valuable because it will show the opportunities for new project development or the expansion of current production. Similarly, the forecast will show the potential threat from new entrants, and may provide early warning to reconsider operations that may become uncompetitive in the future. Production cost analysis is a clearly understood means to evaluate producers and estimate the outlook for their profitability. The cumulative cost for the industry outlines the supply structure and defines the marginal cost of production used in developing price forecast as explained in the sub- sequent section of this paper. Competitive analysis is particularly important to the mining industry, notably to metal producers. The final product is typically a purified metal conforming to standards, and interchangable with the output of other producers, i.e. a fungible commodity. Brand loyalty is questionable in the mineral industry. Consumers will show a preference for specific brands, but this preference will be limited to a premium of several percent over the general market price. Price and assurance of supply are the keys to marketing success. Assurance of supply depends on geopolitical considerations and production capabilities. Price will be closely related to cost of production and a thorough competitive analysis should describe the cost structure of the industry. This snapshot will locate one's own position and provide an immediate and readily understandable evaluation of the hazards and opportunities inherent in this position. In the following section we shall discuss elements, methods and sources for competitive evaluation. ELEMENTS OF COMPETITIVE ANALYSIS The practice of systematic collection and analysis of data on competition is hardly a new concept; see, for example, Wall (1) or Porter (2). However, most discussions have been in the context of conventional industrial or manufacturing industries, with a focus on product lines and brand marketing. These considerations are not irrelevant to mining but they do have only a limited application. The key to success in the mining industry is minimizing the cost of production. However, this simple concept becomes complex when we consider relevant costs and the planning horizon. Production costs include the factors consumed in production, namely labor, fuel, energy, materials and supplies. The cost also includes purchased and contracted services such as freight, smelting and refining, sampling and sales required to convert ore to the finished metal. Royalties and ad valorem taxes paid on gross production are direct expenses, as is the cost of administration required by the production units. The sum of these outflows is the total cash cost, the expense that has to be paid in cash in order to continue production. Indirect costs incurred by a producer will commonly include allocated headquarters expenses, as well as the capital charges associated with equity investment and debt. Profit is not generally considered an indirect cost even though it represents the cost of using the owner's capital; similarly, income taxes represent the government's participation in the profits of the enterprise. Interest payments are considered as a direct expense in some cost studies, but many competitive evaluations would consider

Jan 1, 1985

By J. C. Bayles

An obstacle to the more careful and satisfactory study of metals has been the difficulty in harmonizing the results of chemical and physical tests. These give us records of observations made from different and often widely separate points of view, and while it is true that they furnish bases for more or less accurate triangulations into the realm of speculation, it is doubtful if, with only the laboratory and the testing machine, our investigations would not move in parallel lines, leaving between them an unexplored field in which must probably be sought the information which shall connect the results of chemical and physical tests, and give to both a practical value which neither has yet been found to possess. The use of the microscope in the study of metals is not a new thing, but it is only lately that it has begun to attract the attention it merits or to show results of tangible value to the metallurgist. Among recent valuable contributions to the literature of this subject, I have been especially interested in the work of Mr. A. Martens, of

Jan 1, 1883