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By A. D. Wilkinson

A CROSS-SECTION of the converter aisle through one of the converters and reverberatories is shown in Fig. 5. The aisle is 280 ft. long by 60, ft. wide by 681 ft. to the roof trusse, which have a 63-ft. span and are us )ported by steel columns spaced at 2b-ft. centers. Two 80-ton electric trails, supplied by the Welman Smith .Owen Engineering Co., with 20-ton auxiliary lifts, serve this building. Matte shells and converter-slag shells are dumped into heavily con¬structed flat-bottom bins located on the south side of the converter aisle and 1.0 ft. above the floor. The material is broken by ball and by hand, shoveled off into ladles for unloading on to the reverberatory charge floor, and charged into the furnace as previously mentioned.

Jan 1, 1934

Jan 1, 1903

The following is an incomplete list of members and guests who called at Institute headquarters during the period Feb. 10, 1919, to Mar. 10, 1919. R. H. Allport, Cleveland, Ohio. R. R. Landon, Philippine Islands. I. H. Bergstein, New York. Alfred 0. Law, Cambridge, Mass. Capt. R. S. Burdette, San Antonio, Tex. James M. Little, Towanda, Pa. William R. Chedsey, State College, Pa. F. E. Marcy, Salt Lake City, Utah. L. R. Clapp, Philadelphia, Pa. H. F. Nash, Bartlesville, Okla. J. Murray Clark. L. S. Panyity, Columbus, Ohio. E. H. Claussen, San Francisco, Calif. W. C. Ralston, Reno, Nev. George E. Collins, -Denver, Colo. T. A. Rickard, San Francisco, Calif. George L. Collord, Sharpsville, Pa.. W. A. Rigby, Mt, Vernon, Iowa. William M. Corse, Mansfield, Ohio. H. H. Rowatt, Ottawa. Frank R. Crampton, Los Angeles, Calif. P. H. Royster, Pittsburgh, Pa. Capt. E. 0. Daue. Alan B. Sanger, Dorchester, Mass. A. E. Eddy, Butte, Mont. J. S. Shaw, Pittsburgh, Pa. N. H. Emmons, 2d, Lynchburg, Va. S. B. Shutts, Lynchburg, Va. E. W. Engelmann, Hayden, Ariz. Henry B. Smith, New Britain, Conn. F. A. Fahrenwald, Cleveland, Ohio. W. C. Smith, Roselle, N. J. 0. S. Finnie, Ottawa. Harry M. Spoor. John T. Fuller, Honesdale, Pa. D. M. Stackhouse, Johnstown, Pa. Major C. C. Griggs, Eureka, Utah. F. D. Stay,. Cleveland, Ohio. H. F. E. Gamm, Rutherford, N. J. D. B. Sterrett, St. Cyr, Que. A. W. Hackwood, Butte, Mont. R. H. Thayer, Yonkers, N. Y. C. L. Horne, Roanoke, Va. Kirby Thomas,. New York. B. B. Hood, Chrome, N. J. Henry Traphagen, Toledo, Ohio. R. E. Hore, Toronto Ont. H. D. Trounce, San Diego, Calif. Ross B. Hoffmann, Oakland, Calif. Henry J. Volkin, Ossining, N. Y. G. A. Joslin, Salt Lake City, Utah.. A. T. Ward, Bellefonte, Pa. John Johnston, Washington, D. C. Major L. W. Wickes. Paul S. King, Wilmington, Del. Horace V. Winchell, Minneapolis, Minn. E. William Kohl, Jr., Philadelphia, Pa. Fred L. Wolf, Mansfield, Ohio. W. H. Landers, San Francisco; Calif. J. Carson Adkerson, of the Stockwood Realty Corpn., Inc., of Woodstock, Va., writes that they are discontinuing their operations in Virginia on account of the conditions in the manganese market following the end of the war.

Jan 4, 1919

By H. Kazemi, M. S. Seth

The effects of anisotropy and stratification on flow behavior and production performance of oil and gas wells have been studied by numerous authors.1-3 Lefkovits et al.l studied the performance of totally penetrated, stratified bounded reservoirs with no crossflow. Others have studied a similar problem, but with crossflow; Russell and Prats2 have summarized the findings of these papers. Muskat3 studied the steady-state behavior of liquid flow for a partially penetrating well in an anisotropic system and concluded that the productivity weakly depended on the directional permeability ratios (kz/kr>0.1). Nisle4 used the classical method of point source solution to the diffusivity equation to study the effect of partial penetration on pressure buildup of oil wells in an isotropic system. He found that the theoretical pressure buildup curves consisted of two straight lines, the one at early buildup times having a slope proportional to the flow capacity of the open interval (l-d)k, and the other having a slope proportional to the flow capacity of the entire formation hk,. Later Brons and Marting5 supplemented the findings of Nisle and concluded that partial penetration gave rise to a pseudo damage, which reflected itself as a skin factor in pressure buildup calculations. Using the pseudo skin, they calculated the impairment of productivity of the production wells, which agreed well with the results of Muskat.6 Pizzi et al.,? using an electrical analog of a stratified system, concluded that a high pseudo damage resulted if the reservoir was partially penetrated. Harriss studied the optimum spacing and arrangement of perforations in cased holes. Hantush9 derived an expression for pressure distribution in an unbounded reservoir with restricted flow entry. Seth10 extended Hantush's work to a bounded reservoir. Odehl1 has studied a similar problem for steady-state conditions. The purpose of this work was to investigate: (1) the combined effects of anisotropy, stratification with crossflow, and restricted flow entry on pressure transient analysis of flow and buildup tests, (2) the feasibility of calculating the horizontal permeabilities of intercommunicating stratified systems, and (3) the pressure interference tests in such systems. Theory The partial differential equation governing the isothermal flow of homogeneous fluids of constant compressibility is given by Eq. 1: The initial and the boundary conditions are: 1. The reservoir potential is initially constant, say 4v

Jan 1, 1970

By I. H. Van Horn

IN the development of the incandescent electric lamp one aim of the investigators has been to establish the fundamentals of lamp design, so that the performance of any new lamp may be accurately predicted. The study of the temperature relations in lamps has done much toward establishing these fundamentals. Fig. 1 gives the typical FIG. 1.-ARRANGEMENT OF PARTS IN MAZDA B AND MAZDA C LAMPS. arrangement of the lamp parts in both the Mazda B (vacuum) and Mazda C (gas-filled) lamps. The outstanding differences are the filament form and the bulb shape. The ideal lamp is one in which the filament operates at a uniform temperature throughout its length. In practice, it is necessary to disturb this uniformity by the introduction of supports and terminals. The amount of cooling at the supports and terminals affects the over-all efficiency of the filament as a light producer. The life of the lamp is ordinarily proportional to the maximum and not to the average filament temperature. The Holborn-Kurlbaum type of optical pyrometer has

Jan 9, 1919

By F. H. McDowell

The increasing interest in the subject of electrical separation warrants the addition to what has already been written of a few lines covering the practical workings of the Tilly Foster mill under the direction of Mr. E. S. Moffat, General Manager. Since my last paper was presented to the Institute, Mr. S. P. Tomkins, the superintendent, has had thrust upon him for solution several problems complicated by the introduction of new conditions. 1. The richer portion of the lean ore dump, and that nearest the railroad track, having been worked up in 1890, the handling of the balance, including a largely increased amount of rock, could only be accomplished at an increased cost. 2. The tailings had accumulated close about the mill to such an extent that arrangements had to be perfected to move them further away.

Jan 1, 1893

By W. A. Scheuch

ORDINARILY secondary copper, unless electrolytically refined, is reclaimed directly as foundry ingots used in the manufacture of copper-rich alloy castings. This use does not require the elimination of the impurities to the degree required if the recovered metal is to be used for electrical purposes where a high electrical conductivity is of prime importance. However, as a part of the general policy of reusing its own scrap and by-products wherever possible, the Western Electric Co. at its Hawthorne Works is recovering its secondary copper as wire bars which are delivered to its own rod and wire mill and there processed into wire of high electrical conductivity. This departure from the usual recovery scheme has been accomplished through the careful classification and sorting of the material entering the furnace charges and the careful control of the subsequent melting and refining in a reverberatory furnace. Tests conducted over a period of approximately four years have shown that the quality of wire bars produced from selected secondary copper is equal to that of wire bars produced by the electrolytic refineries. The interest which has been exhibited in the process by those who have seen it has prompted the following general description. It is the authors' opinion that the recovery of secondary copper will become more and more an important factor in the copper production industry. The description is largely of the refining furnace and its operation, but it must be remembered that careful classification and sorting of the scrap materials to eliminate impurities are just as important as the furnace operation toward obtaining a satisfactory final product. Classification and sorting do not lend themselves easily to description; they must just be done. It should also be recognized at the outset that constant intelligent supervision is requisite to the success of the process because there are so many ways in which impurities can find their way into the final product.

Jan 1, 1929

By R. E. Hummel, J. W. Koger

IT is generally accepted that the martensitic start temperature (Ms) can be determined by resistivity measurements and is that temperature where the resistivity vs temperature curve on cooling first deviates from a straight line.1-4 Both Titchener and ever' and pops5 have used resistivity measurements to follow the martensitic transformation in b1 Cu-Zn and ternary Cu-Zn-based b-phase alloys, respectively. Actually because of the nature of their measurements the temperature of minimum resistivity (M) was used by these authors to determine "Ms" . Also, due to experimental difficulties in detecting M, with resistivity measurements, Pops and Massalski 8 determined M, by optical microscopy. The present communication is concerned with high-precision, low-temperature resistivity measurements which reveal a definite M, temperature which differs from the temperature of minimum resistivity (M). It is also shown that M is merely the result of the geometry of the percent-transformation curve and the temperature coefficient of resistivity of the alloy. In other words, it will be demonstrated that M has no apparent significance (except that it denotes a temperature at which some percent of martensite can be detected in a given alloy). Alloy specimens were made by melting 99.999 pct Cu and 99.9999 pct Zn in sealed and evacuated quartz tubes and homogenizing them at 601PC for 300 hr. After the alloy was cold-rolled into foils suitable for resistivity measurements, it was quenched in ice water from 871PC. The chemical analysis showed a zinc content of 38.8 wt pct. The cooling rate during the martensite transformation was 1°C per min and was controlled with a thermistor. Electrical resistivity measurements were made using a K-3 type potentiometer; the reproducibility of the resistivity values was better than 0.03 pct. Temperatures were measured with a thermocouple to an accuracy of better than 0.2° C. Fig. 1 shows the resistivity vs temperature curves of the martensitic transformation in B1 Cu-Zn for both cooling and heating. The starting point of the martensitic transformation (M,) was taken as that

Jan 1, 1968

By R. B. Booth, W. F. Linke

The continuous interest of the American Cyanamid Company in producing superior polymeric flocculants and dispersants for the mining industry has resulted in a broad, general study of the physical chemistry of mineral-polymer systems. The aim of this program has been to establish a sound theoretical basis on which practical problems could be analyzed, and which would lead to the development of new and improved flocculating and dispersing agents. This study has required the cooperative effort of physical, analytical, and polymer chemists, as well as engineers familiar with mining problems. This report summarizes the results of some of our investigations over the past two years. Further studies along these and other lines are in progress and will be reported in the near future. MEASURING FLOCCULATION IN THE LABORATORY The foremost problem in studying flocculation in the laboratory has been to establish reproducible methods of comparing and evaluating the effectiveness of various reagents. Previous workers have measured settling -rates 1,8 filtration rates2 , and sediment volumes3 . Direct observations of the floc size, or the clarity of the supernatant liquid, can also be used. AIthough these parameters are all interrelated, they do not always measure the same physical properties of the suspensions, and hence are not equally useful or reliable. Whatever the method of comparison selected. the testing procedure must be carefully defined and standardized. The results must be satisfactorily reproducible, and for practical purposes must accurately reflect the results obtained in mill use. In order to compare the data obtained in these various types of test, the physical nature of the flocculated system must be examined in some detail. In an unflocculated system, only the larger or denser particles (the "sands") settle at a useful rate. The sediment can be observed to build up from the bottom of the cylinder, while the fines remain in suspension for a long period of time. If the system is not disturbed, even the microscopic fines can be seen to classify themselves as they fall over a period of days. When a high molecular weight polymer is added to the system, the colloidal particles are tied together randomly in flocs, and the sands and fines settle together. The line of demarkation between solid and liquid phases moves downward from the top of the cylinder. The settling rate of the flocs depends on their size and on their effective density. For a given mineral sample, the larger the flocs, the faster the settling. Since the large flocs cannot pack as closely as small ones, they produce a sediment with more pore spaces, and hence of larger volume, which is easier to pump and to agitate. Although it is nearly impossible to measure individual floc sizes, it is relatively easy to determine settling rates and sediment volumes. Of these two, the settling rate is simpIer to measure, and hence generally more practical. Reproducible sediment volumes can only be obtained by allowing the solids to pack for a rather long period of time (e.g., hours to days), and although the volumes thus observed are directly related to the degree of flocculation (average floc size), it is often impractical to wait so long for the results.

Jan 1, 1961

By John F. Wiggert

DURING the early years of Homestake operations, shaft signaling from the cage tenders to the hoisting engineers was done by mechanical means. Small steel cables or jointed steel rods were suspended in the shaft compartments and counterbalanced with weights or springs. These cables or rod strings were connected to the mechanically operated gongs at the engineers' stations by means of bell cranks and steel wires. The system was simple and economical and served the purpose well until the mine reached a depth of 1000 ft., then the system became slow and cumbersome and required a considerable amount of muscular effort to operate it with much speed, because of the inertia of the heavy moving parts. The mechanical signaling was superseded by a simple electrical system consisting of a single pair of wires in steel conduit for each shaft compartment. In the shaft at each station a pull switch was connected to the wires. The switches were operated by means of bell cords, which extended from station to station. This electrical system was a great improvement over the mechanical one, but it had one serious drawback, which also applied to the older system; namely, the engineer did not know where a signal originated. Later on this signaling was improved to overcome this drawback, and to give the engineer a positive indication of a signal's origin. In this system a separate return wire from each pull switch is carried to an annunciator at the engineer's station, where it indicates the signal's origin. While the annunciator system used by Homestake is very safe and reliable, it has the inherent drawback of all wire-connected systems in that it is impossible to send a signal from a moving cage. A number of years ago Homestake became interested in the possibility of using some sort of radio transmission for shaft signaling. The company did much experimental work with purely radio signal transmission, but no practical way was discovered to use radio transmission in a mine shaft for signaling to or from a cage. Therefore, all efforts were directed to devising a practical way of using the hoisting rope as part of the circuit. It was realized that the return circuit from the rope would need to be through electrostatic coupling between the cage and the earth or ground sides of the shaft, because the guides would not always be wet enough to make possible good electrical contact between the cage and earth, therefore relatively high-frequency alternating current was chosen as the medium of transmission. Soon a practical system was developed for transmitting an electric current from a moving cage over an electric circuit of which the hoisting rope was a part. A high-frequency electric current is used as a carrier to transmit the signals or mes-

Jan 1, 1941

By Herbert W. Graham

IRON ORE is widely distributed throughout the world. Ores sufficiently high in iron content to be practical for the operations of iron and steel making occur in so many places that it is only by the accident of political subdivisions that any given nation does not have adequate and suitable iron ore. Data prepared by various authorities show that in the Lake Superior region alone there are reserves of 1,200,000,000 tons of iron ore of an iron content and at the level of production cost to which the industry has been accus tomed. At an annual consumption of 80,000,000 tons these reserves will last fifteen years. Taken alone these figures would be alarming, but over a considerable period of years the total reserve tonnage has been more or less steadily increased by improvement and extension of mining and beneficiation methods. The rate of depletion of reserves has been only about one third of the rate of consumption. On this basis the cheap high-grade ores of Lake Superior would last 45 years.

Jan 1, 1947

By Oliver Bowles

A HEAVY gel of bentonite clay has been proposed as an effective lubricant to speed down the ways to sea, river, or lake, the mighty cargo ships now hitting the water at the rate of about three a day. Another unusual application of a nonmetallic mineral is in food conservation, for the claim has been made that the next new item on the menu for poultry and rabbits will be vitamin tablets prepared from mont-morillonite clay. These uses have minor importance but illustrate not only the diversity in utilization, but the notable trend in 1942 toward mobilizing nonmetallic minerals for the war program. Although occupying less headline space than iron, steel, copper, aluminum, magnesium, and other metals, the nonmetallics are filling important emergency needs. Mica and quartz crystal are essential to communication; asbestos is urgently needed in fireproof heat and electrical insulation; and strontium minerals are utilized in the manufacture of signal flares and tracer bullets.

Jan 1, 1943

By Edward W. Parker

I. INTRODUCTION. AT the Seventy-sixth meeting of the Institute, held in New York, N. Y., February, 1899, I presented a, paper on this subject entitled, Coal-Cutting Machinery,' which has become somewhat out of date, in view of the decade's development in this feature of the coal-minim industry. It should be explained that the present paper is limited to the use of mining-machines in bituminous mines. Practically all of the anthracite mined is ?shot from the solid," no undercutting being done. Anthracite-mining is therefore not considered in the statistics or other references. The statistical record as compiled by the United States Geological Survey shows that in 1898, the year preceding the presentation of my former paper, there were 32,413,144 short tons of coal undercut by the use of machines. In 1907 the machine-mined coal-product amounted to 138,547,823 short tons. In sympathy with the general decrease in coal-production during 1908, the output of machine-mined coal decreased to 123,183,334 short tons, but the proportion of machine-mined coal to the total output, nevertheless, showed an increase, from 35.1 per cent in 1907 to 37 per cent in 1908. In 1898 only 19.5 per cent. of the total product was undercut by the use of machines. The number of undercutting-machines in use in the bituminous mines of the United States has increased from 2,622 in 1898 to 11,144 in 1907, and to 11,569 in 1908. The total production of bituminous coal in the United States in 1908 was almost exactly double that of 1898, while the machine- * Published by permission of the Director of the U. S. Geological Survey. 1 Trans.. xxix.. 400 to 4,59 (1899).

Sep 1, 1910

Jan 1, 1966

By H. S. George

A method of illumination that enhances the value of microscopic study of opaque materials, as in metallography. By simulating natural lighting, structures. That possess relief are given a natural appearance. An example is included of the revelation of a hitherto invisible microconstituent. Erroneous interpretation is avoided. For example, etching figures in ferrite, heretofore considered to be pits, are revealed as pyramids, standing in bas-relief. Suggestions on technique are given, for, while the method is obvious, practice and attention to detail are requisite. ON one occasion when it seemed desirable to reveal under the microscope not only the metallic structure of an alloy, but certain small non-metallic inclusions, that are ordinarily obliterated by etching, it was discovered that, by partly eclipsing the illuminating pencil of light rays, the residual light was thrown on the object from one side and the structure was brought out in relief. At the same time, the non-metallic inclusions were retained in clear view. In this first demonstration of lighting obliquely through the objective a card was thrust part way into the light beam between the arc iris, and the light filter; the shadow of the card on the filter served to locate its position. Next several stiff-paper disks of various diameters were mounted on flexible wires some plasticine on the other end of the wires made it easy to adjust and maintain a disk at any desired position in the light beam. To facilitate manipulation, an assortment of disks, was mounted on a wheel, as shown in Fig. 1. The purpose of partly eclipsing the light beam was discussed in an earlier paper.1 There it was pointed out that the usual methods of illuminating opaque objects for microscopic examination lend an, un-natural appearance to, the view, while the new method, which has been termed conical illumination, revels the true relationship of constituents by simulating natural lighting.

Jan 3, 1924

By John D. Morgan, Sylvain J. Pirson

An instantaneous and continuous analysis of a mineral suspension should be of great value in controlling various mineral preparation processes. Described herein is a method of analysis based on the use of high-frequency alternating current, which, under certain restrictive conditions, could be of use. Theoretical Considerations In a suspension of conductive minerals, the electrical effect primarily responsible for the variations in electric conductivity is the capacitance. In Fig Ia, let an alternating voltage E be applied across two electrodes F and F', between which are two rows (S and T) of mineral particles, all of approximately the same size, immersed in a fluid. Let the number of rows of particles between the electrodes be R and the number of particles in each row be N. If A is the area of a particle, D is the distance separating two particles, and k is a constant depending on the fluid, the capacity, CO, of the particle system will be given by: KRA C°= ND Referring now to Fig Ib, let R, the number of rows, be held constant, but let N, the number of particles in each row (S and T), be increased X-fold. The capacity, C1, of

Jan 1, 1949

Jan 1, 1902

By A. W. Allen

Progress in the art of amalgamation in recent years has been negligible, partly because a copper plate, though it occupies extensive floor space, requires frequent attention and invites theft, is a simple piece of apparatus that gives visible results; partly because the impression prevails that amalgamation is too primitive a process to merit consideration by an up-to-date metallurgist. Both these objections can be overruled. Plates can and will be superseded by more efficient, theft-proof amalgamating units. Improved methods of application other than by settlement or by impact, neither of which is effective for removal of fine gold, will be developed, and the process given wider opportunity. As A. F. Crosse aptly remarked, neglect to utilize amalgamation when free gold can be recovered thus is comparable to the decision of a storekeeper to deal only with credit customers. Usual practice is to follow amalgamation with cyaniding. Rarely is attention paid to the possibility of reversing the order—of extraction of the fine gold first by cyaniding; the coarse, subsequently, by amalgamation. Such a sequence avoids the alleged hazard that amalgamated gold particles may be unacted upon by cyanide, whereas cyanided gold particles are readily amalgamated. Research has indicated, however, that the mercury coating on a gold particle is easily soluble in cyanide solution, probably because such coating is a compound of gold and mercury. Comparative-test results at one plant, of cyaniding a ground concentrate before and after amalgamation, showed total extractions of about 90 and 100 per cent, respectively, indicating high solubility of the mercury-gold particle, if present, or the advantage of preliminary impoverishment before cyaniding, or both. The contention that a loss in residue from an amalgamation-cyanidation plant is occasioned by presence of amalgamated gold that escapes action by solution is not supported by adequate evidence. The function and scope of mercury as an aid to extraction of gold by cyanide is deserving of attention. It is a powerful desulfurizer. To restrict an extractive process to a concentrated product is logical and economical, if preliminary concentration will segregate a high per-

Jan 1, 1935

By Howard Eavenson

The data given in the paper were collected to furnish an idea of the amount required in various operations of bituminous mining to produce a ton of coal, the plants selected being well-managed ones. With these are included some figures compiled from U. S. Coal Commission's report showing the average amount of labor in various classes of mines. THE information contained in the following paper was collected at the request of the U. S. Coal Commission, and is, published with the permission of that body and of the various companies furnishing the data. For obvious reasons, the names of the companies are not given. No data were gotten from States south of Virginia or west of the Mississippi River. The data about the amount of labor, in man-hours, required in producing a ton of bituminous coal have been collected with the idea of showing what is being done at some well-managed plants, and not to show the average amount required by all mines, which undoubtedly is considerably higher than the average of the figures shown.* Almost all of the figures were supplied by the various companies in reply to a questionnaire; when they were obtained from other sources the company was asked to verify them. On account of the amount of work required, the data were only requested for one or two months for each plant, and the figures represent in each case a month when the car supply was good and the work was practically steady. In the case of most of the West Virginia and Kentucky mines, these conditions were best met in May and June, 1922. The mines for which the figures are given are arranged by states and as to whether the mine operates under union or non-union or open-shop conditions. The union mines listed are generally considered to be as well-managed as are the non-union ones. The production per month in a few cases includes the amount of slate which is loaded and hauled out of the mine, as of course this requires nearly as much labor per ton as does the coal. These cases are noted:

Jan 1, 1924

INTRODUCTION Trade financing is a particularly important component of short-term financing for a minerals company since errors, extra costs, or payment delays/defaults can easily wipe out the profit margin on a particular shipment or can cause problems when arranging purchases of e.g. reagents. It is required to make any minerals operation function and does not have to be cross-border to require proper management. Sources of working capital are as follows: 1. Extended credit terms from suppliers 2. Inventory loans from banks, finance companies 3. Accounts receivable financing or factoring 4. Credit lines or overdraft facilities from banks. TRADE CREDITS These are provided under the familiar terms "net 10 days" or payment due by the "10th day of the following month." Thirty days for payment is usual but longer periods can be negotiated with regular suppliers. Shipment may be made on open account with specified periods for settlement. In the mining industry, a custom smelter gains trade credit by paying for concentrates three months after the month of shipment. INVENTORY LOANS Various forms of inventory finance are provided via "floor-plan" or warehouse financing. A set percentage, usually 60%-80%, of a good-quality, readily saleable inventory item (e.g. bullion, concentrates, ingots) will be provided by a bank or finance company which will usually have security over these products and has a right to inspect the goods from time to time. Legal security will he achieved by warehouse receipts, floating liens, chattel mortgages, trust receipts, or through collateral management service companies. The latter certify control over stock or distribution outlets and often carry insurance against fraud. Costs range around 1.5% - 2.0% p.a. or more plus some fees to cover out-of-pockets or other costs. ACCOUNTS RECEIVABLES Accounts receivable financing is based on the company's generation of satisfactory receivables which are continuously assigned to a bank or finance company ("factoring"). Because of the risks in being able to collect receivables, such as payments to a smelter for its blister copper shipments to a refinery, this form of financing costs as much as 3% - 5% of the debt amount purchased plus an additional charge for processing paperwork. Receivables can be purchased with or without recourse and on a notification or non-notification basis to the client's customer to, respectively, pay the invoice directly to the bank or not. LETTERS OF CREDIT Letters of Credit ("L/C's") are a common feature of international trade finance whereby a bank, at the request of the buyer, issues a written undertaking to an exporter to pay a specified sum of money within a set time on presentation of previously specified documents. This undertaking means that the exporter is no longer relying on the credit standing and integrity of the foreign importer. A dispute about shipment does not otherwise affect the obligation to pay upon presentation of a "clean" set of documents. These documents include the hill of lading and other documentation, often on standard "form" bases. There are a number of conventions and techniques in L/C's such as irrevocable/revocable L/C's, time L/C's, confirmation/advising L/C's and transferable L/C's. These are tools to adjust for the varying risks that the importer will not pay. Other routes where one is comfortable with an importer include documentary sight hills (D/P hill), documentary term bills (D/A bill), and, of course, open account.

Jan 1, 1985