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By R. W. Nash, A. E. Schwaneke, V. R. Miller

The Bureau of Mines developed a detector for controlling sorting devices to separate the copper-bearing fragments from the barren portion of Michigan native copper and western prophyry copper ores. A successful sorter could be used to preconcentrate the ore and eliminate costly hoisting or hauling of waste. An induction balance unit was developed and used in sorting tests on crushed sized - 2.5 + 1. 3-cm (- 1 + 1/2- in.) ores from the Kingston (0.9% Cu) and Centennial (1.6% Cu) mines of Upper Michigan. Concentrates of 4.0% and 7.5% Cu, respectively, were obtained at recoveries of 85 and 80% of

Jan 8, 1978

By B. B. Gottsberger

IT SEEMS strange that so many years after the pas¬sage of the first acts requiring registration or licensing of engineers, so few members of the mining branch of the profession are aware of what has taken place. Laws regulating the practice of engineering have now been passed in 19 states of this country, and in many others, such legislation has been proposed. That such laws are necessary for the protection of life, health and property, as is stated in most of them, is doubted by many. That the standing of the engineering profession will be improved by them is certainlyy open to question. That such laws are a welcome addition to the regulation of business by governmental agency, is not likely to be a general opinion. That once more, and in spite of appeals to engineers to interest themselves in affairs of government, an active minority has succeeded in imposing its will on a passive majority, seems but too true. However, the laws are there and information regarding them should be of use and interest to those most directly concerned.

Jan 1, 1921

By E. H. Crabtree

This paper traces the experimental and pilot plant work completed by the authors since 1939 including the various methods which have been developed in applying coarse activated carbon to cyanidation. The methods and results developed by the authors in desorbing gold and silver from carbons are given and the possibilities for the re-use of the desorbed carbons are discussed

Jan 1, 1950

By J. J. Pye, J. B. Drew

The surface-diffusion coefficients of Ni63 diffusing on low-index planes of nickel single crystals have been measured over the temperature range from 400° to 1000°C using a precision autoradio-gvaphic technique. The activation energy for sur -face diffusion appears to he the same on the {111}, {110), and (100) planes and amounts to -0.60 ev. This is in good agreement with the value (-0.62 ev) reported for (111) planes obtained by mass-transport techniques. In an earlier paper, the authors have reported self surface-diffusion coefficients on silver.' In that work, a deviation of the diffusion coefficients from linearity in the Arrhenius plot was observed at high temperatures. This effect was attributed to a loss of tracer atoms into the bulk by volume diffusion. The purpose of the present work was to extend the technique developed to the nickel surface-diffusion system up to the point where volume diffusion would come into play. The nickel system especially lends itself to this technique due to the high efficiency of the isotope in darkening the film and the large absorption of the weak radiation (0.063 mev /3- particle of the trapped tracer atoms. The diffusion coefficients and ictivation energy for different orientations on nickel can also be compared with a report published by Blakely and Mykura 2 where a mass-transfer technique was used. This paper reports the self surface diffusion of nickel on the low-index planes over a wide temperature range using a precision autoradiographic technique. EXPERIMENTAL PROCEDURE The experiment is similar to that described in the earlier publication consisting of a radioactive needle as a source resting on a flat, smooth, chemically polished surface annealed in a dynamic dry-hydrogen atmosphere. The needle is held snugly on the surface by a holder fabricated from commercially pure nickel. The point source is made by grinding down a small-diameter nickel rod until a tip of approximately 0.1 mm radius is formed. It is then etched and the needle tip plated with the radioactive isotope Ni63. Nickel single crystals were used whose main impurities were spectrographically determined as Co 0.05, Fe 0.007, C 0.005, and S 0.003 pct. The surfaces, oriented to within 1/2 deg of the low-index planes, were carefully mechanically polished and etched in a 50-30-10-10 hot solution of acetic, nitric, sulfuric, and phosphoric acids giving a smooth polished surface. The crystals were then washed in distilled water and alcohol. Annealing temperatures ranged from 400° to 1000°C with a furnace arrangement in which the crystals could be brought up to temperature in times short compared to diffusing times. The temperature was maintained constant to ±10°C. In the temperature range investigated, the ratio of the surface-diffusion coefficient to the volume-diffusion coefficient (Ds/Du) was 105 or more and the mean bulk-penetration values, calculated from literature values of volume-diffusion coefficients,3 were on the order of 10-5 cm. After the diffusion anneal, the sintered needle is removed, and both the radius of the needle point and spot left on the crystal face are measured. The crystal is then placed on photographic film. Diffusion profiles are obtained by scanning the film with a recording microdensitometer which has a slit width of 10µ. DISCUSSION AND RESULTS The experimental conditions are such that the source strength and needle radius are essentially constant and the time is adjusted such that the mean bulk penetration is small. An exactly analogous heat-flow problem has been considered by Carslaw and Jaeger4 and the solution can be written in integral form as:

Jan 1, 1964

Abbey, Robert Graham, District Mgr.. The W. W. Sly Mfg. Co., 50 Church St.. New York, N. Y. '21 Abbott, A. N., Mines Supt., Mazapil Copper Co., LtdConcepcion del Oro, Zac., Mexico. '28 *Abbott, Argyle Campbell, Dev. Dept., E. I. du Pont de Nemours & Co., Wilmington, Del. '29 Abbott, Clarence E., V.P., Charge of Raw Materials, Tenn. Coal, Iron & R. R. Co., 1242 Brown-Marx Bldg.. Birmingham, Ala. '04 Abbott, Louis Benjamin, Chief Engr., Elkhorn Div., Consolidation Coal Co., Jenkins, Ky. '16 Abeel, George H., Jr., Cons. Min. Engr Box 427, Santa Monica, Cal. '18 Abel, Albert E., Asst. to Pres., Valley Mould & Iron Corp Hubbard, Ohio. '19 Abel, Raymond L., Asst. Prof., Dept. of Pet. Refin., Univ. of Pittsburgh Pittsburgh. Pa. '28 Abeel, Leo M., Research Engr., Sullivan Concentrator Chapman Camp, B. C., Canada. '31

Jan 1, 1929

By Carl Lee

CHICAGO in the last week of June fulfilled all its promises to the visiting engineers except one. This holds true with respect to the activities of the Regional Meeting of the A. I. M. E. in particular and of Engineers' Week in general. No one expected to find much of the beautiful in the outward aspects of the Fair-the Century of Progress Exposition, to be more formal; but they expected novelty, color, and startling lighting effects at night, and they were in no sense disappointed. It has been said that the architecture is a portent of the style of the buildings of the future; most who have seen the Fair hope that this forecast will prove inaccurate. As to the exhibits themselves, they are splendid. They are in keeping with the theme of the Exposition-a Century of Progress in science, in engineering, in the industries based upon them. No attempt will be made here even to suggest the exhibits that are most interesting. There are plenty for every one; and any member of the Institute who has the opportunity should by all means visit Chicago before the end of October.

Jan 1, 1933

By T. W. Beck

Roof bolter occupations in underground coal mines continue to experience overexposure to respirable dust. One potential source of dust in roof bolting operations is the exhaust from the roof bolter dust collection system. A wet exhaust conditioner (water box) has been developed to reduce dust emissions from the exhaust of the vacuum dust collection system on roof bolting machines. The exhaust conditioner consists of a muffler chamber and a water chamber with four internal partitions to direct airflow over the surface of the water. The National Institute for Occupational Safety and Health conducted a series of laboratory tests to assess the respirable dust capture ability of this device as compared to the standard exhaust muffler. To determine the dust collection efficiency, both devices were placed in the exhaust stream of a simulated roof bolter dust collection system. Gravimetric samplers were operated upstream and downstream of the exhaust conditioner and muffler to evaluate the ability to capture both respirable coal and limestone dust. Researchers observed a 41 % reduction in dust concentrations for the water exhaust conditioner in the laboratory configuration. Significant levels of dust deposition in the sampling chambers may have contributed to this effective capture rate.

Jan 1, 2012

By Lawrence B. Wright, Lester G. Morrell

On the steep slopes of the Kootenays, 15 to 20 miles south of Nelson, B. C., are a number of ore occurrences (Fig. 1). One that has many features of mining and geological interest is the Ymir Yankee Girl Gold Mines Limited. Discovery of this property was made in 1899 at an outcrop on the hillside, some 2500 ft. above the village of Ymir. This proved to be a branch vein 20 ft. long leading to two main veins, the Yankee Girl and the Spur (Fig. 5). The ore pattern as now delimited shows a remarkable increase in ore area with depth below the outcrop. This recent development is of interest particularly in view of the fact that the property was nearly condemned, professionally. Another interesting feature, which has a bearing upon its history, is the persistent excess of tonnage produced from period to period over visible reserves. This is not ascribed to lagging mine development, but to detailed vein characteristics, which we will endeavor to make clear by giving a description of the veins and their surroundings. HISTORY AND PRODUCTION Little interest_was_evidenced-in this-distriet until the building of the railway in 1893 provided easy access and the discovery of the Ymir mine in 1896 attracted attention. As a result, the Ymir Yankee Girl group of claims was staked in October 1899. In 1907, an American syndicate took over the property and subsequently extended the 50-ft. drift and opened the present 400 and 540-ft. levels. In 1908, the Syndicate, without recording any shipments in the meantime, dropped its lease, which was taken up by H. L. Rogers, who bonded the Yankee Girl group. Rogers shipped 2622 tons of ore, mainly from the uppermost stope in the mine, which is reported to have yielded

Jan 1, 1940

By Lawrence B. Wright, Lester G. Morrell

On the steep slopes of the Kootenays, 15 to 20 miles south of Nelson, B. C., are a number of ore occurrences (Fig. 1). One that has many features of mining and geological interest is the Ymir Yankee Girl Gold Mines Limited. Discovery of this property was made in 1899 at an outcrop on the hillside, some 2500 ft. above the village of Ymir. This proved to be a branch vein 20 ft. long leading to two main veins, the Yankee Girl and the Spur (Fig. 5). The ore pattern as now delimited shows a remarkable increase in ore area with depth below the outcrop. This recent development is of interest particularly in view of the fact that the property was nearly condemned, professionally. Another interesting feature, which has a bearing upon its history, is the persistent excess of tonnage produced from period to period over visible reserves. This is not ascribed to lagging mine development, but to detailed vein characteristics, which we will endeavor to make clear by giving a description of the veins and their surroundings. HISTORY AND PRODUCTION Little interest_was_evidenced-in this-distriet until the building of the railway in 1893 provided easy access and the discovery of the Ymir mine in 1896 attracted attention. As a result, the Ymir Yankee Girl group of claims was staked in October 1899. In 1907, an American syndicate took over the property and subsequently extended the 50-ft. drift and opened the present 400 and 540-ft. levels. In 1908, the Syndicate, without recording any shipments in the meantime, dropped its lease, which was taken up by H. L. Rogers, who bonded the Yankee Girl group. Rogers shipped 2622 tons of ore, mainly from the uppermost stope in the mine, which is reported to have yielded

Jan 1, 1940

By AIME AIME

THE Petroleum Division opened its proceedings on Wednesday morning, with two simultaneous sessions on engineering and economics. The first paper at the engineering session, over which A. W. Ambrose presided, was "Underground Surveys of Oil Wells," by Alexander Anderson of Los Angeles, Calif., was presented by John Suman of the Humble Oil & Refining Co., Houston, Texas. Following this, the paper of E.'H. Griswold of the Mailand Oil Co., Houston, Texas, was presented by C. V. Millikan of the Amerada Petroleum Corp., Tulsa, Oklahoma. Following the presentation of these two interesting papers a general discussion followed on the subject of "Crooked Holes." The discussion was entered into by F. H. Lahee, Sun Oil Co., Dallas, Texas;'Messrs. Bigelow of Tulsa, H. W. Hixon of New York City, Van Court Warren of Los Anyeles, Calif; H. L. Wheeler of St. Louis, Mo.; R. R. Brandenthaler, United States Bureau of Mines, Bartlesville, Okla.; H. H. Riggs, Indiana Territory Illuminating Oil Co., Bartlesville, Okla.; C. V. Millikan and John R. Suman

Jan 1, 1929

By Arvid E. Nissen, Knox Taylor, John H. Hall

Some months ago one of the authors was asked to write a paper on the heat treatment of steel castings that would be more comprehensive than other matter he had published; this is an attempt to present in condensed form the results of experimental work and actual practice carried out for the most part in 1907, 1908, and 1909. It is not a laboratory research and the work done was carried out for the express purpose of putting in practice the processes discovered as fast as possible. Most of the tests are the result of commercial practice and not of bars annealed in our laboratory; most of the micrographs were made for our own records and not for publication. Certain of the micrographs, therefore, are not as clear as we may wish but they were good enough for our purpose at the time they were made. The tests and micrographs are selected from several thousands in our files. All of these micrographs are magnified 60 diameters. These experiments were conducted almost entirely on steel made in a 3-ton bottom-blown converter, and most of the steel illustrated analyzes about 0.05 in phosphorus and sulfur. Unfortunately, a certain number of specimens are shown of which we do not have the complete analysis, but in most cases in which the phosphorus and sulfur vary much from the figure just given that fact is noted. For purposes of comparison, we have included a certain number of micrographs and tests of steel made in the electric furnace, some of which were from specimens made in other shops and some in our own shop, and some tests of acid open-hearth and tropenas steel. A brief examination of the tests in Table 1 shows that certain treatments of, for instance, 0.30 per cent, carbon steel are not represented by any test data. Had this been a laboratory research, this information would undoubtedly have been furnished, but as this work was done for commercial purposes the omissions are due to the fact that, at the time the work was done, we saw no advantage in trying every composition of steel with each treatment discussed in the paper.

Jan 1, 1920

By MERLE HOWARD GUISE

WHEN I was a boy I walked into Fairbanks in 1905. I was but a soft chechako, and arrived with blisters covering my feet, as a result of "mushing" the 400-mile trail on foot. Because of them, the display windows of the trading posts were first to catch my eye-dog and horse collars, harness and sled parts! And because of my enthusiasm for things adventurous, I looked long upon the prospectors' gold pans, shovels, rifles, camp equipment, and what not. Today those windows are filled with motor car accessories, tires and repair parts; yes, even thermos bottles and vacuum cleaners! There were many chance meetings with little parties of prospectors in my youth, and it always set my blood to tingling. Sometimes it was a 70-year-old sun-baked son of the Arizona desert, wrangling his stubborn, faithful jenny away from some outfitting store, at others a shovel-ended poling b0at in northern Canada, \vith the partners and the dogs towing upstream along the bank, or an old sourdough, with tug-rope around neck and hand on the spruce sapling gee-pole, mushing along behind his two or three old, plodding malamutes, dragging a little Yukon sled piled high with rusty sheet-iron stove, pick and shovel, cross-cut saw and axe, rifle, bales of dog salmon, and other paraphernalia. These meetings envisioned the panning of old creek beds and draws in the search for as yet undiscovered pay-channels; they meant the toughest kind of work sinking a hole to bedrock in some far-away valley of promise; they suggested wood fires to thaw the frozen muck and gravel and crude windlass and hand-made tub to hoist the water and the mud; but loudest of all they spoke of Adventure.

Jan 1, 1929

By John T. Crawford

Introduction Loading and hauling systems are evaluated in open pit mining for new properties, expanding existing operations, changing systems or equipment, and equipment replacement analysis. The objective of such evaluations is to determine the equipment needed to handle planned tonnages at the lowest cash flow cost. Cash flow costs are used to combine capital outlays with operating and maintenance costs. Leasing costs could be substituted for capital costs with appropriate modifications to calculation procedures. These modifications will not be covered. This chapter will describe methods of evaluating loading and hauling systems, concentrating on some of the more often raised questions concerning quantitative data. While the methods described are not the only ones in current use, they have a record of proven reliability. The shovel and haulage truck system is used In the examples because of its common use in open pit mines. In medium to large open pit mines, electric shovels and diesel-electric drive haulage trucks are normally used. The basic ideas presented in this chapter apply to all loading and hauling systems, with appropriate modifications. The process of performing a shovel and haulage truck evaluation can be time-consuming and tedious because of the quantity of data involved, but it is not particularly difficult. The examples used to Illustrate shovel and haulage truck evaluation are based on a hypothetical open pit mine operating 350 days per year producing 31 750- 000 t (35,000,000 st, 100,000 stpd) annually, of which 11 110 000 t ( 12,250,000 st, 35,000 stpd) are ore. Selection of the optimum shovel and haulage truck fleets will be shown. The principal sources of data for the examples or any other equipment evaluation are equipment manufacturers and actual operations. Whenever possible, actual operating experience should be used to verify estimates. The quantitative data presented herein are unrelated to a specific existing mining operation.

Jan 1, 1979

By Willard P. Ward

SOME TIME in the year 1874 or 1875, I conceived the idea that spiegeleisen might be made -in a blast furnace from ores that were not carbonates, and which did not contain both manganese and iron in the same ore. Up to this time, such ores had formed the basis of all the spiegel that had been produced; and all the ferromanganese that was on the market before 1875 was made in crucibles, and cost about 00 per ton, for 80 per cent. Mn. I consulted the great steel metallurgist of the day, Alexander Holley, who listened attentively to what I had to say, and told me he did not think my plan was practical, so I abandoned it for the time being. But I was so stubborn that I could not get the notion out of my head. It seemed to me that a good metallurgist should be able to work the thing out in some way. I had already had some experience in smelting refractory lead ores in Utah, and was young and not lacking in self confidence, so after waiting a bit, I got Anton Eilers, the best all-around metallurgist I knew, and J. H. Bramwell, the best iron blast-furnace man I knew, both intimate friends of -mine, to come to my place in Bartow County, Georgia, and look over things. They remained for several days, and made all the examination they thought necessary; and they also advised me to give up the project, and either to keep the furnace running on car-wheel iron or to blow it out. After my talk with Holley, I improved my plant in several ways. I closed the top of the furnace, put in a hot-blast stove, a steam boiler and a Weimer blowing-engine which gave me blast enough, at a pressure high enough for all the requirements of, the furnace, and which I could bring up to a temperature of 600° to 700° F.

Jan 1, 1921

By J. F. Shirley, H. K. Burke

In January, 1964, three years of laboratory and pilot plant test work reached its culmination. The San Manuel Div. of the Magma Copper Co. switched its molybdenite extraction circuit from the sodium hypochlorite-ferrocyanide process to the new process described in this paper. The San Manuel Div. Concentrator of the Magma Copper Co. is located near San Manuel, Ariz., approximately 45 miles northeast of Tucson. The concentrator treats approximately 35,000 tons of ore per day containing about 0.85% copper and 0.025% molybdenite. The San Manuel ore body is a disseminated copper deposit in quartz monzonite and quartz monzonite porphyry. The primary copper mineral is chalcopyrite; minor amounts of chalcocite, bornite and covellite are also present in varying degrees. Pyrite makes up somewhat more than half the sulfide content of the rock. The molybdenite is nearly always found on fracture faces or associated with quartz veinlets.' On January 9, 1964, the sodium hypochlorite-ferrocyanide process that had been used for molybdenite recovery was replaced by the following process: 1) A conditioning step with hydrogen peroxide, sulfuric acid, sodium cyanide and zinc sulfate. 2) A two stage rougher flotation step with stove oil and sodium ferrocyanide. 3) One cleaning step with sodium ferrocyanide. 4) One cleaning step with sodium hypochlorite and potassium ferricyanide. 5) Four cleaning steps with an anti-foam Exfoam 636 and potassium ferricyanide. COPPER CONCENTRATOR Since molybdenite recovery is closely allied with previous steps in the operation, the copper concentrator will be briefly described first. The ore is ground to approximately 5% plus 65-mesh and 65% minus 200-mesh in a two-step grinding circuit consisting of rod mills in open circuit and ball mills in closed circuit with rake classifiers. A straight forward rougher circuit producing only one concentrate is used. The rougher concentrate is combined with the discharge from the regrind ball mills and is then cycloned, with the overflow going directly to the cleaner circuit and the underflow going to the regrind mills. The feed to the cleaner circuit is approximately 90% to 94% minus 325 mesh. The cleaner circuit consists of two stages in which the tailing from the final cleaner stage is returned to the primary cleaner and the primary cleaner tailing is returned to the rod mill discharge at the head of the circuit. Approximately 0.013 lb of the allyl ester of amyl xanthate (S-3302) per ton of ore is added to the rod mills and approximately 0.006 lb of sodium isopropyl xanthate (2-11) per ton of ore is stage added down the rougher banks. The frother used is methyl iso-butyl carbinol (MIBC) and it is added at various points in the grinding and the rougher flotation circuits. Lime is added to the ball mills and/or to the rod mills to maintain the desired pH in the rougher flotation. The rougher flotation has been operated at various pH levels between 10.5 and 11.5. Fuel oil is added in the regrind mills at a loading of approximately 0.01 lb per ton of ore. Factors Which Directly Affect Molybdenite Recovery: It has been found at San Manuel that, to obtain maximum molybdenite recovery, an oily type flotation collector must be added in the grinding circuit. When molybdenite is crystallized in the characteristic platy form, which appears to be the case almost all of the time at San Manuel, its surface has a greater tendency to adhere to oils than water. 2 Of the several oily type collectors available on the market, the allyl ester of amyl xanthate seems to be the best molybdenite promoter. The floatability of San Manuel's molybdenite does not appear to be affected, at least up to a pH of 11.5, by lime. It has been reported that at several plant operations high lime alkaline circuits have adversely affected the molybdenite recovery.3,4 It has been found through microscopic studies that the bulk of the chalcopyrite will float before the molybdenite in both the rougher and cleaner circuits. It is necessary to add fuel oil to the regrind mills to enhance the

Jan 1, 1965

By John J. Collins

Page Purpose and scope..................... 521 Core sampling......................... 521 Sludge sampling....................... 527 Combining core and sludge assays ...... 533 Deviation and surveying of drill holes. . . . 537 Conclusions........................... 544 Acknowledgments...................... 545 Bibliography.......................... 545 Purpose and Scope The purpose of this paper is to review a few of the problems involved in the interpretation of diamond-drill core and sludge samples, with the hope that it will stimulate discussion and bring forth some of the information on the subject that has been accumulated by various organizations. The release of these data would benefit the mining industry as a whole. Particularly valuable would be the details of drilling programs that have been tested by actual mining operations, as most of the available published material is unsupported by production records. The scope of this paper is limited to a few of the commonest problems of interpreting diamond-drill core and sludge samples and the deviation of holes. It does not include the description of routine operations performed by the drillers, nor the estimation of ore reserves. The methods of calculating reserves have been described,25,26,31,32,50,65 but more informa- tion is needed on the results shown by actual mining operations. Core Sampling The accuracy of diamond-drill-hole Sampling depends in large measure on the percentage of core recovery. As a general rule, the longer the run, the poorer is the recovery. Although the longer runs allow cheaper drilling costs, the determining factor should be the percentage of recovery desired. The problem is one of balancing accuracy against costs. Holes of larger diameter may show improved recovery, except as Joralemon* points out that there are some conditions in which small holes give better core recovery than large holes. This is particularly true, he says; in rocks like shattered quartzite, where larger core tends to break in angular fragments and grind up, while the diameter of smaller core is less than the distance between joint planes and grinding is not so serious. In a large measure the length of the sample run should depend on the type of deposit. Favorable drilling may allow uniform sample runs of 5 ft., 10 ft., or perhaps 20 ft. In veins or beds of relatively narrow widths and changing characteristics, however, the ore zone may be overrun and ground in a core barrel full of waste rock. Generally it is desirable to break the sample at a change in the rock or ore. Such a change; often indicated by a color change in the sludge water, should be a a for the driller to make a "dry" block and to pull out that run regardless of the length. Such a procedure permits the segregation of waste from ore samples so

Jan 1, 1946

By Finney, W. R.

MUCH has been said and written of the "Big Inch," of the terrific obstacles encountered in its construction, of the colorful and tough men engaged in its building, but little has been publicized of the engineering and economic problems behind the scenes. Long before Pearl Harbor it was apparent to the petroleum industry that a critical oil shortage could be expected along the Atlantic seaboard, owing to delay in tanker deliveries as a result of convoy movements, and to allocation of vessels for foreign shipments. This area, with a normal consumption of approximately 1,800,000 barrels per day of oil and products, was almost entirely supplied by tanker. Pipe lines supplied an average of only 20,000 barrels per day in 1939, 40,300 barrels per day in 1940, and 55,000 barrels per day in 1941. A small amount of oil and products was also delivered via barge.

Jan 1, 1943

By Thomas T. Read

THE official title of our topic for today is "Resources of Metals and Other Strategic Minerals," but in accepting the invitation to open this discussion I claimed the privilege of being allowed to talk about problems other than resources for the two reasons that a great deal has already been said about resources and because we can never discuss them with the degree of certainty that an engineer likes. Resources are uncertain for many, reasons. One is that we do not know what is in the earth. It is four thousand miles to its center and although oil wells 1 ½ miles deep are becoming common and engineers are now talking of drilling holes 2 miles deep, even when they do they will have advanced only one two-thousandth part of the total distance. Only a relatively few mines are over a mile deep as yet. We know certainly that it is comparatively expensive to work at such great depth, but it would be a very foolish man who would assert it will be' impossible, one or two hundred years from now, for engineers to obtain from great depths mineral supplies that are now being obtained at or near the surface. As long as- I can remember I have been hearing that our petroleum resources were in imminent danger of speedy exhaustion, and yet the yearly output is now of the same order of magnitude as the total resources were once estimated, with ' the cry of over-production the loudest it has ever been. Tapping progressively deeper and deeper sources of supply, has produced this result. Even in the thin layer that we are now working much-exploration still remains to be done. .

Jan 1, 1929

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By AIME AIME

DURING my senior year at college a professor said to his class that a student who failed to obtain a passing grade in that certain subject could not graduate with his class and that his diploma would be withheld until the failure had been removed. In that way for four years a diploma had been made to appear to us as the objective in attending college. We grew up to think that a diploma was the means of providing employment; consequently, a diploma could not be jeopardized and, heeding the professor's remarks, we resolved to put forth special efforts and make good. During one of our class periods this same professor digressed briefly from his prepared lecture in metallurgy and advised the boys to join a national technical society. He spoke with earnestness and sincerity. After class we students discussed those remarks. We concluded that the professor had not convinced us. We were already members of technical societies at school and saw no need of joining another. In fact, even up to that moment a society had never indicated to any of us that joining it had any relation to landing a job, and we were fully aware that joining another society meant paying out more money, for fees and dues, which money we then needed to buy food, clothes, and perhaps a new slide rule. Furthermore, we knew that joining a society was not part of the curriculum and, therefore, the diploma could not be withheld if we did not follow the advice. Our conclusion was that we would not join but would concentrate on our work that assured getting our diplomas.

Jan 1, 1936