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MINING AND METALLURGICAL SOCIETY OF AMERICA San Francisco Section The San Francisco Section of the Mining and Metallurgical Society of America held a joint meeting with the local section of the American Institute of Mining Engineers at the Engineers' Club, San Francisco, on Tuesday, Apr. 16, 1918. The meeting was preceded by a dinner. Letters from the parent body in NewYork asking for the consideration of the proposed bill before Congress, and an expression of opinion relative to the appointment of a Federal Administrator of Mines justified the joint meeting of the local sections of the two mining societies, in that a more representative opinion of the engineers of California could he obtained. The meeting was called to order at 7:15 P.M. by Mr. Frank H. Probert acting as Chairman. About thirty engineers were present. Mr. Probert read a letter of March 14, from Secretary Huntoon, asking that the meeting be called. He read excerpts from Bulletin 117 of February 28, 1918, of the Mining and Metallurgical Society containing a copy of the proposed bill, so that all present might be advised of its essential contents. He briefly commented on the urgent need of such legislation and invited discussion of the subject. After long and thorough discussion on the part of the members present, Professor Lawson made the following motion: I move that a resolution expressing the sense of the joint meeting of the local sections of the American Institute of Mining Engineers and Mining and Metallurgical Society of America be forwarded to the secretaries of the two societies to the effect that we heartily approve of the purpose and intention of the bill designed to promote and stimulate the production of minerals necessary for the successful prosecution of the war; and that we suggest prices should be fixed for the period of the war and two years thereafter, and that these prices, guaranteed by the Government, should apply at the nearest shipping point to place of production of the minerals. This motion was carried. The meeting then adjourned, and a telegram was sent by Mr. Probert, the Chairman, to Mr. Huntoon, notifying him of the motion that had been carried at the meeting.

Jan 7, 1918

"Located in Madison River Canyon, about 14 miles by road from Norris, Mont. Built in 1907 by Madison River Power Co.DAM: Rock filled wooden crib structure, 183 ft. long, 34 ft. high or 44 ft. to top of flashboards.SPILLWAY: 140 ft. long, equipped with flashboards 10 ft. high.PIPE: One 10-foot and one 12-foot wood-stave pipe, 7,515 feet long.PRESSURE: One pressure chamber, 32 ft. high, 30 ft. wide and 81 ft.CHAMBER: long, built of concrete.PENSTOCKS: 4 9-foot steel penstocks about 200 ft. long, one for each wheel.WATER WHEELS: 4 double horizontal, center discharge, Sampson special 44-inch turbines, 3,600 h-p., at 100 ft. head. Speed 300 r. p. m„ direct connected to generators.GENERATORS: 4 G. E., W. C., 2,250 k-w., 4,000 volts, 300 r. p. m., 3 phase, 60 cycles, alternators, with exciters mounted on same shaft.TRANSFORMERS: 12 G. E., W. C., 900 k-w., 60 cycles. High tension voltage 23,100, 34,650, 46,200; low tension voltage 4,000, 3,800, 3,600. Now operating at 46,200, delta connected. They can be connected Y for 40,000, 60,000 or 80,000.OPERATION: This is the principal plant of the whole system and carries most of the load."

Jan 1, 1913

By G. V. Sullivan, B. E. Davis, T. O. Llewellyn

The Bureau of Mines, US Department of the Interior, conducted studies to recover phosphate from four dolomitic southern Florida deposits not currently mined. The samples contained 5.8-10.2% P205 and 1.7-4.8% MgO. Chemical analyses of sized fractions indicated that no pebble concentrate, +1.2 mm (+14 mesh) could be produced from these samples. A scheme was developed that consisted of desliming, grinding, scrubbing, and redesliming the ore to produce a flotation feed. Conventional one-step fatty acid fuel oil batch flotation tests on the samples resulted in concentrates containing 29.0-31.3% P205 at flotation recoveries ranging from 72.4 to 96.1% of the flotation feed. The MgO content of the concentrates ranged from 0.47 to 1.36%. Continuous flotation of the Manatee No. 2 sample indicated that commercial-grade phosphate concentrates analyzing 31.3% P205 and 0.55% MgO could be produced with a flotation recovery of 89.9%. The MgO content of concentrates obtained from the Manatee No. 1 and Hardee samples was 1.20 -1.36 %, respectively. Leaching with aqueous SO2 reduced the MgO content of these phosphate concentrates to 0.5 and 0.8%, but with a concomitant loss in phosphate recovery of about 10%.

Jan 1, 1985

By John V. Beall

BROMO Seltzer blue has gone to war. The blue of the Bromo Seltzer bottle is a product of cobalt, the Nation's No. 1 strategic metal. When the National Production Authority, on Nov. 21, 1950, ordered a 70 pct cutback in domestic use of cobalt, a stab of pain was felt in the hearts of the glass, porcelain enamel, steel, paint, pottery, and electrical and electronic equipment industries. The reason: A full-scale wartime economy with astronomical requirements for jet engines, high velocity projectiles, armor plate, electronic equipment, and the many products needed to win a war. There is little potential comfort for cobalt users in nonessential manufacturing, and the military will be pinched for optimum supplies of the metal. However, if proper measures are taken immediately and current plans are completed, in two years there will be far more cobalt available than ever before. When normal times return, cobalt supplies should be sufficient to meet peacetime military requirements, and greatly expanded domestic requirements that will result from new technological development for wartime but adaptable to peacetime products. The pres-

Jan 1, 1951

By T. K. Perkins, W. W. Krech

Jan 1, 1969

By Perry Olcott .

THE Taka oil field is in the northern part of Titus and Franklin Counties, in north- eastern Texas. The small town of Talco, from which the field derives its name, is on the P. & Mt. P. R. R., about 15 mi. north of Mt. Pleasant, the county seat of Titus County. The oil field extends east and west from the town of Talco, the approximate center. In May, 1924, R. L. Cannon, while doing surface geology for the Humble. Oil & Refining Co., mapped the surface trace of this fault structure as evidenced by Upper Midway faulted down against Lower Midway. In the interval of sixteen years between the original surface work and the recent productive well completion, approximately eight wells were drilled into the Woodbine sand without success. The structure was well defined by those tests and all of the wells en-

Jan 1, 1936

By J. M. Sands

THE state of Kansas had a daily average crude-oil production of about 87,000 bbl. at the beginning of the year. This showed a steady but consistent decline during the 12 months, so that the daily average production at the end of the year was slightly over 68,000 barrels. GREENWOOD COUNTY THE most active development in Kansas during the year was in Greenwood County, in a line from near Sallyards in T 25-R 9 to east of Madison in T 22-R 11. The main part of this development has been in a succession of pools beginning at the south with the Polhamus pool in 34-24-9 and 3 and 4-25-9; Thrall pool in 28, 29, 32 and 33-23-10; Burkett pool in 13, 23, 24 and 26-23-10; Seeley and Wick pool in 22, 27, 28,. 32 and 33-22-11 and 5, 6, 7, and 8-23-11; Frohm pool in 11, 14 and 15-22-11; Madison pool in 31 and 32-21-12 and 6, 22, 12 and 1-22-11. Some of these pools have two or more sands, locally called Bartlesville and Burgess Sands. They range in depth from 1850 ft. near Madison to 2450 ft. near Sallyards, the general dip being to' the west. The thickness of these sands run from 20 to 100 ft., the initial production of the wells being 50 to 1000 bbl of 40-gravity oil or better.

Jan 3, 1924

By E. I. Salkovitz, F. W. von Batchelder

AS Slawson1 and others have already shown, from a geometrical view twinning in the diamond structure may be considered as a reflection across a (111) plane or as a reflection across a (112) plane. An analysis by Ellis and Treuting2 showed that the twinning plane must be the (111) plane, but that a twin might have lateral boundaries along (112) planes. Earlier Slawson1 and Ellis3 had shown that only (111) twinning was present in diamond and germanium respectively. Since an ingot of silicon, 1 in. in diam and 1 1/2 in. long, prepared from Dupont silicon to which 0.2 pct Be had been added was available, it was examined for twinning. The ingot had been cooled slowly from the bottom. A section 1/16 in. thick was ground off from the bottom and then the ingot was sliced vertically through the center. Spectrographic analysis indicated only faint traces of iron and silver, in addition to the beryllium. The sample was first etched with a hot solution of 10 pct NaOH in water.and photographed. Back-reflection Laue patterns were made of the vertical and horizontal sections in the regions designated in Fig. 1. Orientations were obtained for each twin using the Greninger technique. Several regions of the same orientation were found; thus regions A and K were identical, similarly N and P, and C, G, J, and L. Knowing the angles between the traces of the twinning plane on the surface and the specimen axis, the indices of the twinning plane were deduced. In all cases the twinning plane was found to be (111); lateral boundaries, however, were found which were (112) such as the one indicated in Fig. 1. Therefore, as in the case of diamond1 and germanium' only (111) twinning occurs in silicon. We wish to thank Mr. Hino for the use of the ingot as well as for its metallographic preparation. References 1C. B. Slawson: American Mineralogist (1950) 35, p. 193. 2 W. C. Ellis and R. C. Treuting: Trans. AIME (1951) 191, p. 53; Journal of Metals (January 1951). 3W. C. Ellis: Trans. AIME (1950) 188, p. 886; Journal of Metals (June 1950).

Jan 1, 1953

By R. W. Ludt, C. C. DeWitt

The use of froth flotation for the separation of minerals has become one of the most important of ore dressing processes. Its particular adaptability to the enrichment of low grade ores has made the process an important factor in the national economy. The methods have been extended to the recovery of a great number of minerals. Among the few minerals which have resisted efforts toward industrial flotation is chrysocolla, a hydrated partly colloidal copper silicate. Chrysocolla, being a product of natural oxidation, has been found to occur in small quantities with many ores which are recovered by flotation methods. In present practice, these small quantities of copper silicate pass off with the tailings and are lost. The advantages to be gained by a satisfactory process for the recovery of chrysocolla is apparent. Any application of principles which points a way toward the satisfactory industrial flotation process for copper silicate would be of advantage. This paper presents an attack on this problem. Two methods for the recovery of chrysocolla have been developed by the United States Bureau of Mines.1,2 They have been successful on a laboratory scale but have been seriously restricted in industrial application by critical requirements in the procedure. In one of the Bureau of Mines methods,' the ore is activated with sodium or hydrogen sulphide in an aqueous solution at a pH of 4. Amy1 xanthate is then used as a collector with pine oil as a frother in the flotation process. An excess of sulphide acts as a depressant and the state of optimum conditions is difficult to control industrially. In the second Bureau of Mines method,2 soap is used as the collector at a pH of between 8 and 9. The diffi- culties with this process are that soap is not a specific collector, that heavy metal or alkaline earth ions cause the formation of insoluble soaps, and that a more acid solution causes the formation of a free acid which does not act as a collector for chrysocolla. The problem of recovering chrysocolla by flotation involves the selection of a suitable collector. The collector molecule must be composed of an active polar group that has an attraction for chrysocolla, and of a hydrocarbon chain. Certain dyes have been shown to have an attraction for certain minerals. Suida3 found that hydrated silicates are colored by basic dyes. Dittler4 showed that chrysocolla, among other colloidal minerals of acid reaction, preferentially takes up such basic dyes as fuchsin B, methylene blue, and methyl green. Endell5 gave information to show that the colloidal material in clay may be determined by its selective adsorption of fuchsin. A simple experiment, likewise, illustrates the difference in the adsorptive power of chrysocolla and of silica for the basic triphenyl methane dyes. When a mixture of chrysocolla and silica is immersed in a very dilute dye solution, less than 5 ppm, the chryso-colla is rapidly dyed and the silica is dyed more slowly. The difference is substantial but one of degree. Dean2 showed that the dyes, crystal violet and toluidine blue, are taken up by quartz in an adsorption type process. The difference in the adsorptive power, however, offers the means by which a new collector may act. To form such a collector, a hydrocarbon chain must be attached to the dye molecule. This involves a process of organic synthesis. Butyl, hexyl, and octyl hydrocarbon chains were selected for substitution in the malachite green molecule. For the purpose of identification, the alkyl-substituted dyes formed are called: butyl-malachite green; hexyl- malachite green; and octyl-malachite green. An outline of the procedure for their synthesis is given in the appendix. It is generally recognized in the preparation of this type of dye that the chemical structure of some of the dye molecules varies. However, a uniform formula is attributed to the dye. Such a procedure has been followed in specifying the structure of these alkyl-substi-tuted malachite green dyes. The structure is given on the basis of their properties as an homologous series of dyes, on their method of preparation, and on the purity of intermediates used. Structure of substituted alkyl malachite green is: C6H4 N(CH3)2 p-R C6H4 CH C6H4 N(CH)2 Procedure The flotation cell is a Bureau of Mines 100-g, batch unit provided with an air inlet at the bottom above which is a variable speed agitator. The agi-

Jan 1, 1950

By F. E. Bedale

STUDY of several severe mine explosions that occurred during the winter of 1907 led to the belief that coal dust was a definite explosion hazard. The Consolidation Coal Co. was a pioneer in the early work to' eliminate this hazard and to combat the dangers incident to poor ventilation and the presence of methane. Maintenance of high humidity throughout the mines was one of the first measures adopted, later to be superseded by rock-dusting. In the twenty years from 1907 on, many safety measures were developed and adopted, and several prizes were won, though the practice was crude by present-day standards. But in 1927, the company went to work in earnest, and organized a Department of Safety with adequate personnel and with authority to enforce all approved rules for the prevention of accidents and the preservation of company property. All plans for new construction work, changes in mining systems, and proposals for the purchase of new mining equipment had to receive the approval of this Department. A set of operating- and safety standards was written to govern the activities of all employees, and physical examinations for them were required.

Jan 1, 1938

By Lyon F. Terry

ACCEPTED current practice for A the valuation of mineral property is based upon Hoskold's theory and valuation tables first published in 1877, and popularized by Herbert Hoover's "Principles of Mining" issued in 1909. In more recent years the procedure has been developed further in the course of the extensive valuation work required for Federal taxation purposes. The 1-aluation of oil and gas properties and of mines is based upon the same principle-the estimation of the present worth of future net revenues. However, in valuing oil and gas properties the method used for discounting future revenues differs somewhat from that adopted for mines, owing principally to the nature of the re- source. production from oil and gas properties usually declines from year to year, whereas coal and ore de- posits are adapted to a more uniform rate of output.

Jan 1, 1940

By A. J. Langhammer

A. J. Langhammer.—That is rather asking a question of the wrong man. However, I will reply to the question from our point of view. There is a considerable amount of iron powder available but the properties vary over a wide range. Powder metallurgy has progressed to the stage where we recognize certain requirements in powdered iron, and what may be a good powdered iron for one application will not necessarily fit the picture for the next one. Further, I believe that there is room for great improvement in the properties of powdered iron. Also, that there is only a limited quantity of powdered iron available having certain specific properties in which we are at the moment interested. F. P. Peters.—May I have a word? With all possible respect to the contributions of the Chrysler Corporation (and they have been tremendous) to the war effort, I think it is easy to get from part of Mr. Langhammer's discussion a false impression of vaster possibilities than really exist. It would be well if in addition to Mr. Langhammer some other manufacturers of machine parts' might tell us in the next few minutes some of the limitations they have found. For example, what is the maximum tensile strength that is being produced in a commercial part in production today? And what is the actual size limitation on bearings that are in operation and are standing up well? We should always bear in mind the fact—and I think Mr. Langhammer will agree with me— that quoting on a particular part does not necessarily mean placing it in production. In many cases it may be several months before the quotation is resolved and we know whether the part can be made. Let us open up this thing for a little free-for-all discussion of some of the ceilings that do exist in the design of machine parts made by powder metallurgy. The ceiling is not unlimited, and Mr. Langhsmmer will agree with that, 3 am sure. H. Hendriks.*—I do not think that there is so much limitation in the making of powder metallurgic manufactured parts as mentioned. Last year we had the problem of making dies for a special machine used in the manufacturing of slide fasteners. This part was wearing out very fast. It was very hard to make, it had to be hobbed out of a special steel and it was a difficult thing to manufacture in general. The tolerances were one half of one thousandth of one inch on all dimensions. We submitted this die to a manufacturer of powder-metal parts. He thought that it was impossible, but we were not as skeptical as he was and decided to try it anyway. The Canadian General Electric Carboloy Division, in Toronto, gave us then the design for the dies, which we made to their specifications. When the first part was delivered, we submitted it to our Inspection Department and its check showed that all the tolerances were right on the dot. They delivered I9 parts of exact specification, then they went off the beam; they could not keep to the tolerances. It took them a long time to get back again. We do not know what happened, but the main point I want to' make is that if a problem is attacked in the right may, the dies are made right and corrected as to dimensions found out by experiment, I do not think that there is so much diffculty in making powder-metal parts to close tolerances.

Jan 1, 1945

By Evan Bennett

ALMADEN is Arabic for "the mine." The definite article is properly used, for no mercury mine in the world compares with it for richness and volume of ore, produced and potential. After more than twenty centuries of exploitation, intensive throughout the last lour, ore from Almaden is about five times as rich as that of its closest competitor. We drove to the mine one April afternoon, across Don Quixote's plains of the Mancha, up the bleak, arid valley of the Rio Valdeazogue where we passed tenth century Moorish workings and their ruined castles. At dusk, we came to the Hacienda de Castilseras, a large farm where Almaden miners work their land on off days. Then we drove through the whitewashed, well-ordered town to the Castillo de la Direccion where we were challenged at the iron gate by two picturesquely costumed Guardias Jurados.

Jan 1, 1948

By PHILIP N. MOORE

IT is a pleasure to realize even at that day the dignity of the engineer's calling was upheld. May I also add my firm belief that today there be many engineers who will qualify to the specifications of our interesting author. Since that time, the development of the world has been chiefly due to the engineer, and so far as human brain can foresee, the material tasks of the future will continue to follow the directions of his judgment. Popular opinion says this is the age of the engineer; literature, which in the long run, voices public sentiment, shows it in the number of engineers who figure as characters of fiction. The engineer has been doing the big things necessary to increase the comfort and efficiency of mankind, but while a certain amount of fame and repute falls to him, too often he figures as the hired man of the entrepreneur, using that term not in the offensive sense of a mere promoter, but to mean the great visioned master of enterprise who has seen ahead of other men, recognized the coming needs of the world, and through ability to inspire others and to hire capital for his use has also been able to hire engineers as needed. Justly enough, therefore, to such men comes the fame as well as the prize of the game.

Jan 1, 1926

Herewith are transmitted the joint report of the Treasurer and Finance Committee for 1934 and the reports for the same year of the Chairmen of the following Committees: Admissions, Membership, Papers and Publications, Library, and MINING AND METALLURGY. TO these reports you are referred for details of the year's activities. Finances.-Income for 1934 from all sources totalled $134,967 com- pared with $121,689 in 1933. The increase is accounted for principally by four items: $6000 increase in initiation fees and dues of new members; $1800 in current dues; $4000 in "back" dues; and $2800 in the sale of publications, including TRANSACTIONS volumes and technical papers in the form of "separates." In passing, it may be remarked that income from back dues during 1935 will be less than in 1934, for the obvious reason that the total amount of dues in arrears has shrunk and consequently there is less to draw from. Income from

Jan 1, 1934

By Y. Wang, M. M. Singh, H. L. Hartman

Knowledge of the state of stress at the bottom of a drillhole is of practical importance in rock drilling, since the induced stresses must exceed the strength of the rock in order to cause fracture. This note reports on a numerical method to determine the stress distribution at the bottom of a borehole induced by a static bit load and overburden and fluid pressures. The procedure adopted is similar to that for the plane-strain, discrete model employed by Harper and Ang.1,2 The rock medium is considered to be homogeneous, isotropic, and elastic-perfectly-plastic. METHOD OF ANALYSIS AND PROGRAMMING The discrete model adopted consists of two types of points: mass points and stress points. The configuration and numbering notation are depicted in

Jan 1, 1967

By Claude P. Heiner

mountain region to M tht Coast points for domestic consumption and for export are shown in Table 11. There is considerable disparity in rates from both Rock Springs, Wyo., and Castle Gate, Utah, to the four coast cities where the slack coal is to be used for purposes other than export. The rate on coal to be exported is the same from either starting point to any of the four coast cities even though there is a difference of as much as 341 miles in the shipping distance. It is interesting to note that the freight rate between Sunnyside, Utah, and Fontana, Calif., on coking coal is $5.05 per ton and that coal up to 8 in. can be moved on this rate if it is suitable for coking. This rate was published late in 1942 on a contemplated annual movement of more than 500,000 tons. There have been decreases in freight rates since 1923 on movements of slack coal from Utah into Seattle and Portland due to pressure on the railroads and to greater. quantity of coal shipped. It is the author,', opinion that a movement of slack coal in excess of 3 million tons of coal per year from Utah to any point in central California would justify a freight rate equal to that puhlished for Fontana, Calif.. or $5.05 per ton. The movement of 3 1/2 million tons of coal per year on the basis of 240 mine working days per year would require that 14,600 tons be handled each mine working day. If it is assumed that shipments could be arranged for a 6-day week, the average railway movement would he 11,200 tons, or approximately 3 trains containing fifty-five 70-ton coal cars per day. Such movements of coal would require railroad equipment represented by the investment amounts stated in Table 12 and entail the services of 250 men. Table 12 ... Railroad Equipment and Investment Required To Move 11,200 Tons of Coal a Day from Utah to California Railroad Equipment Cost 2800. 70-ton coal cara at $6.000 each $16,800.000 32 locomotives at $310.000 each. 9.920.000 Miscellaneous eauiument:.......... .5;000:000 Total........................ $31,720,000 It therefore appears that, under presently known mining methods, the lowest price at which coal could be sold f.0.b. the mine in amounts of 3 1/2 million tons per year for generation of power in central California would be $4.60. It also appears that the lowest freight rate that could be expecled between intermountain points and the central California area would be $5.05 per ton, making a total cost of coal delivered at a plant site of $9.65 per ton. Conelusions The following are the author's conclusions: 1. Coal mines in Utah and in the Kemmerer and Rock Springs districts of Wyoming could increase annual production by 6 1/2 million tons per year. 2. Under present conditions coal could probably be delivered to any steam electric plant in central California at a price not to exceed $9.65 per ton. 3. The use of coal at such a price, while higher than the equivalent present price of fuel oil, is entirely feasible. 4. There are adequate railroad facilities for movements of large quantities of coal from the intermountain region to the Rest Coast. 5. In a national emergency it probably would be extremely difficult, if not impossible, to obtain sufficient oil to meet requirements of the greatly expanded West Coast steam electric generatsing capacity. 6. The intermountain region contains ample coal reserves to supply all conceivable demands for West Coast power generation for a number of generations. 7. Increasing demands of labor threaten to lessen, if not eliminate, savings in cost of coal production through the use of new mining machinery. 8. Continuation of experiments in socialism by the Federal Government through construction of hydroelectric generating plants, particularly those unrelated to land-use reclamation, defies justification. Rates under this concept of a governmental function are subsidized through greater taxation of its people. Private capital is available to construct steam plants, or hydro plants where feasible, and should be permitted to continue in order to preserve the principles of our free enterprise system. DISCUSSION (L. C. McCabe and Robert P. Koenig, presiding) C. C;. BALl*—I was asked to lead off the discussion, but it is not with the thought that I might be able to add anything to the paper. The thoroughness with which it was prepared rather forestalls the asking of many questions. Your treatment, Mr. Heiner, is a very valuable contribution. I do want to suggest—that although you have limited your study to this specific question, with certain geographic limitations, many of the things in your paper apply just as well to the eastern coals. I want to agree 100 pct with your final conclusion concerning government-subsidized construction. Id. C. McCabe*—It is certainly worthwhile to take stock occasionally to see where we are going in problems of this nature. I agree with Mr. Heiner that ultimately the only reliable source of fuel that the West Coast has is coal hut the time factor is the difficult element to evaluate. Just before I came here I discussed this subject with N. B. Hinson, Vice President and Executixe Engineer of the Southern California Edison Company, and Chairman of the West Coast Inter-Power Exchange Committee. He has given much thought to utilities' fuel supply and it was very helpful to me in preparing a discussion of the paper to talk with him beforehand. Stock taking and forecasting of future development are essential to the continuing success of any enterprise. Mr. Heiner has called attention to the unprecedented growth of central and southern California and to the increased demands for fuel and power which have accompanied it. He discusses the increased fuel oil and natural gas requirements and the probable limits on the future use of these fuels and of hydroelectric power. In contrast to the calculable limits of these sources of electric energy, the author points to the availability of enormous reserves of coal in the Rocky Mountain States adjacent to the Pacific Coast which can be utilized for power generation. That there will be increased use of coal for power generation in the area under discussion is generally accepted hut it is in the timetable of such development that there is not complete agreement. In a recent report, Mr. Hinson reviewed the future power outlook for the Pacific southwest area. He pointed out that the use of steam plants in connection with water power plants in this region has made the maximum use of hydroelectric energy possible, and that the correct balance between hydro and steam generating plants produces the most economical overall system. Steam plants in the area which had been installed to protect against deficiency in hydro energy in dry years were used to carry war loads. Fortunately, no dry

Jan 1, 1950

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 E. D. Gardner

FIFTY years ago the Utah Copper enterprise at Bingham was just getting under way. An epic in metal mining was in the making. Throughout the West the bonanza deposits were approaching exhaustion and most ore still went direct to smelter. But concentrators were shortly to be constructed for treating milling grade ores, and most important, the pilot plant for the Utah Copper enterprise was being built that year at the mouth of Bingham Canyon. The same decade was to see development at the Inspiration mine in Arizona of the most important new mining method for 50 years to come—undercut block caving. Although the average grade of ore being mined has been declining for 50 years, and wage rates and prices of supplies have been greatly increased, the mining industry has continued to grow and to prosper. Technology has advanced to a point where minerals can be mined under the most severe conditions. The hardest rock can be drilled and broken and the heaviest ground handled. Large or small, an ore-body can be mined successfully, at any desired rate of production. It is possible to pump great volumes of water and to ventilate the most extensive workings; air conditioning has made practicable the mining of ore where the rock temperatures are beyond those that can be borne by man. Mining today in the U. S. is a huge earth-moving operation. In 1953 nearly 2 billion tons of material were mined for direct use or for processing. Stripping at open-cut mines totaled about 1.7 billion cu yd. Table I gives relative tonnages of the branches of the mineral industry in 1953. In addition to the solid materials moved, 350 million tons of petroleum and 340,000 tons of gas were produced in 1953. Fifteen million tons of salt and 5 million tons of liquid sulphur were pumped from wells. An appreciable amount of copper was recovered by leaching old mine workings and dumps. Total value of minerals produced in 1953 was $14.4 billion: oil and gas $7.6 billion, coal $2.6 billion, nonmetallics $2.4 billion, and metals $1.8 billion. Formidable problems face some branches of the industry today, especially pertaining to increased output tons per manshift. The time has come when these problems should be reappraised. With current wage rates, the industry no longer can afford to pay men to do manual labor. It should be recognized, also, that the miner is a skilled worker; efforts to promote the dignity of his calling and his pride of accomplishment have yielded beneficial results. Mineral deposits occur under widely varying conditions. In most instances the degree of support needed by the roof and walls is the deciding factor in selection of an underground mining method. The degree of support needed, in turn, is governed by natural physical characteristics of the ore and its enclosing rocks. Mine operators, of course, learn to judge ground by observation, and an experienced mine boss generally can anticipate what will happen following any given mining operation. A more scientific approach, however, would be advantageous in most cases. More should be known about the strength of the ore and the enclosing rocks, more about stresses set up in the ground when ore is removed, and more about the mechanics of moving ground. Better understanding would work both ways: first, favorable rock conditions could be fully utilized for more efficient mining, and second, hazards of rock falls could be minimized, loss of ore in mining reduced, and expenses caused by ground pressures and subsidence lowered. In general, mining comprises breaking the ore or rock in place, supporting the mine workings, and transporting the ore to the surface. This latter is a materials handling problem. Ventilation, of course, must be provided, and the mines must be kept free of water. Development work at some places is the most important cost item in extracting ore. Drilling and blasting remain the usual practice for breaking ore or rock from place except, of course, at block-caving mines. The drilling and blasting practice at a mine must fit the mining method. In laying out mining procedures attention is being given to

Jan 1, 1956

By B. A. Stainton, John D. Gill

OUR combined economic activities have as their goal the maximum of individual well-being and national security. In this age of intense international competition the two objectives are closely related. For many decades, the maximum of well-being and ability to maintain national security have moved generally upward. The best single measure-perhaps the only adequate measure -of the level of the rising goal is the per capita real national income (national income corrected for price changes). For centuries before the industrial revolution the income of the world's population changed little from generation to generation. In our country prior to 1800 the growth of national income was hardly measurable from decade to decade. Since 1850, perhaps since the "industrial revolution," the growth of per capita real income has been increasing geometrically. Of major importance is the accelerative growth of the productive ability of our economy. Inadequate consideration of its implications is partly responsible for periodic delays in solving our princi-

Jan 1, 1946