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By Anthony Tuke

Members of the Society of Mining Engineers may well regard it as rather unusual that a paper on this subject is being presented by someone whose first taste of mining came at the age of 60 or so - someone who last heard of cathodes and anodes in 1938. On the other hand, the title does refer to the financing of a mine and at least I can claim to have spent all my business life since the war until 1981 in the world of banking, though this inevitably means that I have been used to looking at these and other problems through what you might regard as the wrong end of the telescope. The lending of money, and more particularly the provision of finance for commerce and industry, is the central job of a banker and I have been involved in this in various ways over many years, but regrettably only very marginally in the world of mining. As you will see from what follows, the rather specialised form of finance which RTZ required was, to my regret, not provided by the British banking community since the great majority of the finance came from American banks and, to a lesser extent, from German banks. I am most indebted to Mr. Roy Wright for a great deal of the nuts and bolts in this paper. He was one of the three central figures in the growth and expansion of RTZ during the 1950's and 1960's and was right at the centre of the negotiations with bankers, with governments and with many others. The going, as you will see, was far from easy. The essential basis for the financing of each of the RTZ group's mining projects was a firm long-term sales contract for sufficient of the output of the particular mine to produce the cash flow necessary to service the loans. Wherever possible, loans were raised in the same currency as the sales contracts were made. Each sales contract was designed to give the customer the product he wanted with a long-term assurance of supply and at the same time to give the bankers the protection they required. Thus the marketing concept and the financing concept for a particular mine formed one overall plan, and talks with the customers and the bankers were conducted in parallel until a satisfactory marketing/financial package was agreed in principle. Preliminary talks were begun soon after the discovery of a potentially viable orebody. As confidence about a discovery increased, customers were persuaded to enter into contingent sales contracts before the very detailed and costly business of the economic and technical feasibility study of the mine was launched; such a study might cost 10% or more of the estimated total capital cost. At the same time provisional understandings were reached with the bankers. The contingent sales contracts usually gave a period of grace of eighteen months to two years, during which time the decision whether or not to continue with the mine had to be made. This decision rested mainly on the result of the feasibility study and also on coming to a firm agreement with the bankers. If all went well and the mine went ahead, then the contingent sales contracts became firm, but they fell away if the decision was negative. The Company was fortunate that during the whole period when its major mines were being developed, world trade was increasing rapidly and Japan was becoming a dominant industrial power. The Japanese supported many of the mines, including Hamersley Iron Ore, Lornex Copper, Bougainville Copper to name a few, with the basic long-term sales contracts that enabled their development. The Germans supported Palabora and to a lesser extent Bougainville. The mines were financed as individual projects generally with a loan/equity ratio of about 65/35, without legal recourse to RTZ for the loans. RTZ was, however, responsible for providing any capital overruns required to bring the mines into commercial operations. Nevertheless, the RTZ management regarded itself as morally responsible to the lenders because, Palabora aside, the sales contracts had either a fixed selling price (like Hamersley), an indexed price (like the Elliot Lake Uranium Mines and Mary Kathleen), or a floor price (as in Lornex, Bougainville and Rossing). Thus the Company believed that any financial failure would have been due to poor management or technical

Jan 1, 1985

W. M. Courtis, Detroit, Mich.: Except for free-gold ores, I have always believed in scorification. I think the crucibleassay gives silver low. We found this out at the Wyandotte works in assaying Silver Islet ore. The mine-managers made us, and also the check-assayera, run one of the duplicates by

Jan 1, 1896

By R. H. Richards, A. E. Woodward

In Rittinger's Aufbereitungskunde of 1867 occurs (p. 195) the following table, which shows the rate of falling in water of fragments of minerals, of irregular shapes and of five different specific gravities: Diameter of particles in millimeters. 10 8 6 4 3 2 1 .5 Sp. Or. Velocity in meters per second. Auriferous silver, 16..9 .8 .7 .57 .5 .4 .29 .20 Galena,. ..7.5 .62 .55 .48 .39 54 .28 .20 .14 Pyrites,. ..5.0 .49 .43 .38 .30 .26 .22 .15 .10 Quartz,. ..2.6 -30 .27 24 .19 .17 .14 .10 .07 Coal,. ..1.3 .13 .12 .10 .08 .07 .06 .04 .03 With the purpose of extending this valuable table, to cover a larger number of minerals and sizes of each mineral, and of making it more easy of application in deciding upon a sieve-scale for any group of minerals, we have prepared the curves of velocity of fall of bodies in water shown in Plates I., XI., 111. and IV., using Rittinger's formula V= 2.44d(8 —1) where V= velocity in millimeters per second. " D = diameter of particles in meters. " 8 = specific gravity of the mineral. These curves embrace a large number of specific gravities, and for each specific gravity the relation of the diameter of the mineral particle to the velocity of its fall in water is given for all diameters and velocities used in practice. The second diagram is an enlargement of the lower left-hand corner of the first, the third bears the same relation to the second, and in like manner the fourth to the third. Plate I, therefore, covers the work of the coarsest jigging 2 inches in diameter; and under

Jan 1, 1890

AALL,Christian H.,(M '49), Asat.Research Dir , Phosphate Div Monsanto Chem.Co.,Monaanto, Tenn. AAMOT,Olav Crone, (M '29), Dir of Tech., Chromium Min. & Smelt. Co Ltd Box 6215, Hillyard, Spokane, Wash. AARING, Floyd Daniel, (J '48), Prod. Engr., Canadian Gulf Oil Co., 8035 - 102nd St., Edmonton, Alta., Canada AASE, Glenn D., (J '40), Met Engr Western Research Div. ,Amer. Smelt. & Refin. Co., Selby, Calif ABADIE, Henry G (M '43), Senior Prod Engr., Long Beach Oil Dev Co., 255 S Santa Clara Ave Long Beach 2, Calif. ABBOTT,Clarence E (M '04), Civil Engr., 901 Insurance Bldg., Raleigh, N.C. ABBOTT, John, H., (M '46), Resident Mgr., Hickman, Williams & Co., Rm 2205,230 N Michigan Ave., Chicago 1. I11.

Jan 1, 1952

By R. L. Loofbourow

Trends in the metal mining industry were definitely down in 1954. With a record in 1953 of $1.8 billion output, the last year dropped to $1.5 billion, the lowest value since 1950. The decrease in iron ore production alone accounted for at least 10 pct of the decline. PROBABLY more than any previous year, political debates of 1954 marked a new high for the mining industry. Lead and zinc prices gave forth with minor rallies producing no real improvements. An anticipated drop in copper prices never came to be. Early in the year arguments for more free trade versus tariffs to restrict imports were voiced eloquently by Charles P. Taft, president, Committee for a National Trade Policy, and Andrew Fletcher, president, St. Joseph Lead Co.

Jan 3, 1955

By B. B. Zavoico

During 1936 the Russian oil industry made very satisfactory progress and, while not all difficulties of organization have been ironed out, the country is now assured of a supply of petroleum products in sufficient quantities and of quality demanded by modern motor equipment. The year 1937 promises to better by a wide margin the good showing of 1936. The statistics given in this paper for the first time take into consideration the varying gravities of crude oils of the several Russian oil fields instead of using a flat conversion factor of 7 bbl. per metric ton. It was found from the detailed study that the generally used average conversion factor should be increased from 7 to 7.25 bbl. per metric ton, the figure varying, of course, with the gravity of oil in the individual fields. Crude-oil production during 1936 is estimated at 201,500,000 bbl. as compared with 182,970,000 bbl. produced in 1935, an increase of 9.4 per cent. The greatest increase was again recorded in the Baku district, which increased its production by 10.9 per cent, from 141,257,000 bbl. in 1935 to 158,300,000 in 1936. Grozny district maintained its production at a level of about 23,000,000 bbl., but its old fields continued to decline and production was sustained by the development of newer fields. A great advance was made in drilling speeds and the total footage in 1936 reached 6,694,200 ft. as compared with 4,926,600 ft. drilled in 1935, an increase of 26.4 per cent. In older deep fields, producers were being completed at over 8000 ft.—a great depth for Russian drillers but two years ago. Several major discoveries were made in 1936. Northeast Caucasus.—Izberbash, east from Grozny and on the Caspian Sea, was the outstanding discovery, the initial production of the discovery well being around 3000 bbl. per day from about 5000 ft. The importance of the field is due to the large area of the structure, half of which, however, is under the sea, and also to its strategic location on the shores of the Caspian and near a trunk pipe line to the Grozny refining center. An active development program is being pursued in Izberbash and its 1937 production quota is set at 7,500,000 bbl. Achi-Su field, near Izberbash, also discovered during 1936, while not as prolific as Izberbash, is thought to cover a very large area and the small

Jan 1, 1937

By Saburo Shigeno, Kunzo Amano

As shafts and tunnels move deeper levels in underground mining, development planning becomes more complex. The most serious problem is the aggravation of environmental conditions due to the imposition of higher-than-natural temperatures upon exposed strata. Since such a problem is a potential hazard to health, safety, and production, the authors have developed a system of computer-derived ambient-air temperature data for every major point of an underground mine under a given set of conditions. This system is comprised of two subsystems: 1) Ventilation network analysis, 2) Estimation of air - current temperature. The former is based on the Hiramatsu-Oka method, an improvement of the Scott-Hinsley method. The Hiramatsu-Oka method allows fast convergence and consideration of various fan characteristics. The latter subsystem considers heat radiation from strata, and the humidity. In several tests conducted at Besshi and Sazare Mines of Japan, the computer-derived data correlated with actual conditions.

Jan 1, 1969

By Thos Egleston

The sands of Snake River, Idaho, have long been known to contain gold. They were worked by some of the first prospectors who came to Idaho, and on the banks still stand the ruins of camps abandoned for years. There are almost always prospectors searching for gold during the season of low water, and it is not an infrequent thing to find a miner of the old type actually panning the sand, or the prospect-hole which he has just left. There is more or less mystery about these miners and their methods of finding the spots where they work. They are always subjects of much speculation to the ordinary traveller. The rich discoveries are, for the best of reasons, concealed until the claims can be taken up. It is difficult to find a place where there are no prospects, but the " colors " are so very fine that they do not offer much inducement to enterprise. The California miner usually values a color at from 5 to 10 cents, often the latter; while on Snake River it would take 100 colors, or even more, to make that amount.

Jan 1, 1890

Discussion of a paper of S. S. Rummy and W. F. SCHWEDES, presented at the Pittsburgh meeting, October, 1914, and printed in Bulletin No. 94, October, 1914, pp. 2613 to 2635. K. A. PAULY, Schenectady, N. Y.-I have seen this installation and I wish all those interested in the question of electricity as a mine pumping agent could see it. It is not only a model for mine installation, but might well serve as a model for any electrically driven pumping plant. I think I am correct in saying that the pumps are the largest electrically operated centrifugal pumps in mine service in America. I talked with Mr. Rumsey in Duluth just before coming here, and he told me that the actual tests of the equipment as installed checked very closely with the shop tests; that the water delivered by the pumps was slightly in excess of the guarantee, something like 3 or 4 per cent., and that no troubles except of a very minor nature had been experienced with the installation from the start. One point which has been brought out by Mr. Rumsey, and by others who have looked into this question, is the marked saving which' can be made by the application of electricity to pumps, especially to the main sump pumps. The pumps are always located a long distance from the boiler plant and the losses in the steam mains are large. While many of the steam pumps are of a very high grade, yet the tests seemed to indicate that the steam consumption is extremely large. The reduction in operating cost of one small installation which I. have in mind pumping against a head of approximately 2,000 ft.-which by the way was a reciprocating pump-reduced the pumping cost to the neighborhood of one-fifth of the previous steam cost. . The high steam cost was probably due to leakage in the engine and the loss in transmission in the mine, the pumps being located almost half a, mile from the boiler plant.

Jan 4, 1915

By D. P. Morton

SINCE 1023, which closed the speculative era in the bituminous coal fields of the United States, there have been wide annual fluctuations in the national production of bituminous coal. These changes in annual output have been variously attributed to: (I) increased competition from petroleum products, natural gas and hydroelectric power; (2) lower unit consumption of coal; and (3) fluctuations in the general business level. The purpose of this paper is to measure, from a practical standpoint, the net effect upon the annual trend of bituminous coal production, and to give those who are interested a basis for estimating in advance the probable output of bituminous coal. It can readily be shown that changes in the level of general business affect the national production of bituminous coal more than does any other factor. Therefore it is necessary to use some standard measure of the relative business level for purposes of comparison. The Federal Reserve Board Index of Industrial Production offers the basis for such a measure.' This Index, a weighted composite of 81 different series, rests upon the averages of the years 1935 to 1939 as loo, and is presented graphically in Fig. I. Even a cursory examination of the chart will indicate a definite uptrend for industrial production over a period of years. This uptrend is due to at least two factors: (I) an actual increase in national population, and (2) a probable increase in the per capita consumption of goods. This means that there is no such thing as a fixed Normal, rather Normal is a variable, tending to increase from year to year. In order to measure the amount of annual increase in normal, the Index of Industrial Production must be studied in relation to its major components, Durable Goods and Nondurable Goods. Durable Goods are those made from the lasting materials such as iron, steel, other metals, lumber, stone, cement, clay, glass. Nondurable Goods are those for early consumption, such as foods, textiles, tobacco, chemicals, paper, gasoline, and goods made of leather and rubber. The purchase of Durable Goods may be postponed, but Nondurable Goods must be purchased currently unless the standard of living is lowered. The Federal Reserve Indexes of durable and nondurable goods are shown graphically, 1920 to 1939, on Fig. 2 (pp. 764-765 of ref. I). It is apparent that fluctuations in the production of nondurable goods are not nearly so wide as in the production of durable goods, and that the curve of Industrial Production (Fig. I) would fall between the two curves on Fig. 2. It would, however, seem logical that both curves should follow the same long-term trend, or that over a period of two to three decades the relative proportion of durable and nondurable goods, in periods of normal production, should he the same. It is neces-

Jan 1, 1941

By D. P. Morton

Since 1923, which closed the speculative era in the bituminous coal fields of the United States, there have been wide annual fluctuations in the national production of bituminous coal. These changes in annual output have been variously attributed to: (1) increased competition from petroleum products, natural gas and hydroelectric power; (2) lower unit consumption of coal; and (3) fluctuations in the general business level. The purpose of this paper is to measure, from a practical standpoint, the net effect upon the annual trend of bituminous coal production, and to give those who are interested a basis for estimating in advance the probable output of bituminous coal. It can readily be shown that changes in the level of general business affect the national production of bituminous coal more than does any other factor. Therefore it is necessary to use some standard measure of the relative business level for purposes of comparison. The Federal Reserve Board Index of Industrial Production offers the basis for such a measure.l This Index, a weighted composite of 81 different series, rests upon the averages of the years 1935 to 1939 as 100, and is presented graphically in Fig. I. Even a cursory examination of the chart will indicate a definite uptrend for industrial production over a period of years. This uptrend is due to at least two factors: (I) an actual increase in national population, and (2) a probable increase in the per capita consumption of goods. This means that there is no such thing as a fixed Normal, rather Normal is a variable, tending to increase from year to year. In order to measure the amount of annual increase in normal, the Index of Industrial Production must be studied in relation to its major components, Durable Goods and Nondurable Goods, Durable Goods are those made from the lasting materials such as iron, steel, other metals, lumber, stone, cement, clay, glass. Nondurable Goods are those for early consumption, such as foods, textiles, tobacco, chemicals, paper, gasoline, and goods made of leather and rubber. The purchase of Durable Goods may be postponed, but Nondurable Goods must be purchased currently unless the standard of living is lowered. The Federal Reserve Indexes of durable and nondurable goods are shown graphically, 1920 to 1939, on Fig. a (pp. 764-765 of ref. I). It is apparent that fluctuations in the production of nondurable goods are not nearly so wide as in the production of durable goods, and that the curve of Industrial Production (Fig. I) would fall between the two curves on Fig. 2. It would, however, seem logical that both curves should follow the same long-term trend, or that over a period of two to three decades the relative proportion of durable and nondurable goods, in periods of normal production, should be the same. It is neces-

Jan 1, 1942

By D. P. Morton

Since 1923, which closed the speculative era in the bituminous coal fields of the United States, there have been wide annual fluctuations in the national production of bituminous coal. These changes in annual output have been variously attributed to: (1) increased competition from petroleum products, natural gas and hydroelectric power; (2) lower unit consumption of coal; and (3) fluctuations in the general business level. The purpose of this paper is to measure, from a practical standpoint, the net effect upon the annual trend of bituminous coal production, and to give those who are interested a basis for estimating in advance the probable output of bituminous coal. It can readily be shown that changes in the level of general business affect the national production of bituminous coal more than does any other factor. Therefore it is necessary to use some standard measure of the relative business level for purposes of comparison. The Federal Reserve Board Index of Industrial Production offers the basis for such a measure.l This Index, a weighted composite of 81 different series, rests upon the averages of the years 1935 to 1939 as 100, and is presented graphically in Fig. I. Even a cursory examination of the chart will indicate a definite uptrend for industrial production over a period of years. This uptrend is due to at least two factors: (I) an actual increase in national population, and (2) a probable increase in the per capita consumption of goods. This means that there is no such thing as a fixed Normal, rather Normal is a variable, tending to increase from year to year. In order to measure the amount of annual increase in normal, the Index of Industrial Production must be studied in relation to its major components, Durable Goods and Nondurable Goods, Durable Goods are those made from the lasting materials such as iron, steel, other metals, lumber, stone, cement, clay, glass. Nondurable Goods are those for early consumption, such as foods, textiles, tobacco, chemicals, paper, gasoline, and goods made of leather and rubber. The purchase of Durable Goods may be postponed, but Nondurable Goods must be purchased currently unless the standard of living is lowered. The Federal Reserve Indexes of durable and nondurable goods are shown graphically, 1920 to 1939, on Fig. a (pp. 764-765 of ref. I). It is apparent that fluctuations in the production of nondurable goods are not nearly so wide as in the production of durable goods, and that the curve of Industrial Production (Fig. I) would fall between the two curves on Fig. 2. It would, however, seem logical that both curves should follow the same long-term trend, or that over a period of two to three decades the relative proportion of durable and nondurable goods, in periods of normal production, should be the same. It is neces-

Jan 1, 1942

By Henry D. Hibbard

THIS article aims to clarify the use of some terms often occurring in writings on iron and -steel, and also to suggest several new short abbreviated names for some of the things related to the subject which now are indicated by phrases. Crude or Crude Iron The name crude or crude iron is recommended for the iron produced from ore by the blast furnace. When necessary it can be specified as pig iron when in the form of pigs (usually cold), or as molten iron, commonly called hot metal to distinguish it from cold iron in pigs. The product of a direct process of making wrought or malleable iron from ore is not included.

Jan 1, 1924

By A. C. Fieldner

THE COMMITTEE on Correlation of Research held two meetings in 1931. The first was a luncheon meeting on Feb. 19, at the Engineers Club, New York, attended by eight members and four guests-William H. Bassett, past-president of the Institute; Robert E. Tally, president; H. Foster Bain, secretary; and Alfred D. Flinn, director of the Engineering Foundation. Mr. Bassett gave a short resume of the circumstances leading to the formation of the Committee and expressed his opinion that the objectives as expressed by the Committee in its first annual report were in accordance with the ideas of the Institute officials. Mr. Tally stressed the great importance of research in the mining and metallurgical industries and stated that lie believed the Institute should encourage and promote research, and that this Committee could do a great deal to foster such work in the Institute. Mr. Bain pointed out that this Committee was appointed with a view to correlating and fostering research work. in the field of the Institute's activities. This could be done in various ways, as by encouraging the divisions and committees of the Institute to hold group meetings on research, by forming research subcommittees in the Institute divisions, and by bringing together research interest in. certain projects and the fund or organization that is equipped to carry out the project.

Jan 1, 1932

By Byron B. Morton

NICKEL-BEARING alloys are associated with petroleum in the fields of exploration, production, and refining. In the first- named field the geologist of today makes use of such instruments as the seismograph, torsion balance, and magnetometer, the selection of proper alloys and metals for the manufacture of which is an important matter. Nickel-bearing alloys are useful for parts that require resistance to corrosion or that must have non-magnetic properties. Where special co- efficient of thermal expansion are de- sired, they are obtained by using alloys high in nickel (20 to 60 per cent), since, by varying the nickel contents, alloys can be obtained ranging fro111 "Invar", with a low expansion between -40 and 175 cleg. F., to those with coefficients of expansion exceeding that of steels. The latter are obtained by additions of chromiurn to the alloys. Alloys containing 50 to 80 per cent of nickel, which possess high magnetic permeability, find application in certain instruments where this property is important.

Jan 1, 1935

By H. Evans, L. A. Hunt

In the pellet-producing industry it is sometimes claimed that "The pellets are made in the concentrator," or that "The key to good pellets is in the balling operation." However, one claim is generally agreed on: If you can put in, on, and through the indurating furnace a good green ball of Proper size and adequate strength to withstand the handling, load, dehydration, and thermal shock until it is properly heat-hardened, you will have the pellet product you desire-that is, a "competent" green ball. The strength requirements that enable a competent green ball to withstand the environment of the indurating furnace are usually less restrictive than those for transporting the green ball from its source of production to the furnace. Experience has shown that different types of material may have different balling characteristics which may impose limitations on the quality of the green ball that can easily be produced under normal conditions. Therefore, if a specific material will produce a green ball that meets the physical requirements for competency in the furnace, but not for handling or transportation, various practices must be instituted to overcome this deficiency. In other words, if a normal handling system is too rigorous for the green balls that can be produced under standard conditions, then "handling with care" should be tried.

Jan 5, 1967

By W. G. Matteson

The Gulf Coastal plain of the southern United States is that area bordering for a large part, the Gulf of Mexico and extending inland and northward to the main interior highland region. It is more or less V-shaped and includes the States of Florida, extreme southern Alabama, all .of Mississippi and Louisiana, the eastern and southern half of Arkansas, and the eastern, southeastern, and southern portions of Texas. While the contents of this paper apply to. the Gulf Coastal plain in general, they are intended to refer more specifically to that portion of the plain included between the 90th and 97th meridians, and the 29th and 33d parallels, an area that may be described geographically as comprising western Mississippi, all of Louisiana, part of eastern and all of south-eastern Texas. It is within this area that numerous and prolific oil pools have been developed during the last 17 years.

Jan 2, 1918

By Vernon Read

Among the technical problems in AEC's Project Plowshare is the necessity of determining the precise effects of nuclear blasts in all kinds of ground formations. This calls for extensive in-situ sampling with full core recovery. In the exploration drilling that often precedes a new test detonation, the AEC and its contractors have applied both novel and established sampling techniques in many new ways, giving improved core recovery and reduced costs in all subsurface sampling and testing. Unique among these new techniques is one that achieved full recovery and virtually undisturbed samples from near-surface layers of unconsolidated boulder-strewn alluvium. This approach involves a combination of oilfield and mining core drilling equipment. Oilfield heavy drill collars, rotary stabilizers and thick, vibration-reducing oil emulsion drilling mud were used in combination with the precise hydraulic feed control, fast (over 300 rpm) bit rotation, light drilling weight, hard rock core barrels and multi-step diamond bits that are common in mining industry diamond drilling.

Jan 8, 1963

By GUY C. RIDDELL

THE recent purchase by an American investment trust of a substantial block of shares in a British owned Venezuelan copper operation directs attention to mining activities that have been quietly gaining momentum in that country for a number of years. We hear so much of oil work in Venezuela that attention to its metal-mining activities is in most quarters casual. In gold and copper the country has made some interesting mining records, and two of the old districts are ,digging in for a come-back. Copper Copper production centers in the state of Yaracuy. The Aroa-Cumaragua mining region has had a long and eventful history. The Aroa mine itself, 50 miles from the coast in West-Central Venezuela, was discovered in 1605. First mined in 1632, owned at one time by Simon Bolivar, it has been reopened many times and is now , the basis of substantial operations by the South American Copper Syndicate, Ltd. of London. The latter has operated the property profitably, off and on, for a number of years, paying heavy dividends on a small investment-at times over 300 per cent annually.

Jan 1, 1929