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By J. L. Huiatt, R. B. Tippin

Introduction Great Salt Lake Minerals & Chemicals Corp. (GSL), a subsidiary of Gulf Resources & Chemical Corp., is located on the east side of the Great Salt Lake, approximately 20 miles from Ogden, UT. GSL processes brine from the north arm of the lake to produce potash, salt cake, salt, and magnesium chloride brine. Potash fertilizer, in the form of K2SO4 is GSL's primary product. The CSL Sulfate of Potash Complex: The GSL potash complex (depicted in [Fig. 1]) is divided into a solar evaporation pond system and the process plants. The solar evaporation system consists of a 17,000-acre (68.8 km2) ponding operation where the various salts deposit during the summer evaporation season and a harvesting operation which recovers the deposits during the remainder of the year. The harvest is either preconcentrated in the flotation plant or processed directly in the chemical plant where sulfate of potash (SOP) is produced. The chemistry of the lake brine results in a solar deposit containing primarily kainite (KC1 . MgSO4 . 3H20), schoenite (K2SO4 . MgS04 . 6H20), and halite (NaCI), with some carnallite (KC1 . MgC12 . 6H20) and epsomite (MgSOq . 7H20). Other minerals may be deposited, depending upon the weather during the evaporation season. Each year, the solar deposit in the evaporation ponds will greatly depend upon the summer weather conditions, which have in the past proven to be quite unpredictable. Weather may alter both the quantity of the solar deposit and the composition of this deposit. During a "short" evaporation season, the tonnage deposited decreases, but depending upon the short-term weather, the potash mineral content can vary greatly. During an "erratic" evaporation season, with intermittent summer rains or

Jan 1, 1980

By Joseph W. Richards

(New York Meeting, February, 1912.) THE Ashio copper-mine of the Furukawa Mining Co. is situated 18 miles from Nikko, and 109 miles north of Tokyo, near the center of Japan. The mine-waters are run over scrap-iron, whereby most of the copper is precipitated as cement copper, leaving iron sulphate with some copper sulphate in solution. After using in the wet concentrating ore-dressing plant, the waste water contains clay and ore-slimes. The only avenue of disposal of this water is the Watarese river; but as this flows through valleys in which the water is used for irrigating the rice-crops, it is necessary to purify and clarify the water before discharge. The water amounts to from 600 to 700 cu. ft. (from 17 to 20 cu. m.) per minute, and averages about 0.00025 per cent. of copper, representing more than 18 tons of copper per month. The water carries H2SO4, FeSO4, Fe, (SO,),, CuSO4 and other metallic sulphates in solution, and clay, ore-fines, slimes and basic. iron sulphates as suspended matters. To purify and clarify the water, precipitation by milk of lime has been used, in three different ways, as follows: I. First Method, Copper not Recovered. Milk of lime was run into the water, and the mixture run through six settling-ponds, and then through a sand filter into the river. Fig. 1 is a view of the settling- and filtering-ponds. In the first pond, sand and metallic hydrates free from copper collected; in the next five ponds, slime, calcium sulphate, and metallic hydrates carrying copper settled out. The effluent carried from 0.1 to 0.05 mg. of copper per liter

Jun 1, 1912

Iowa Geological Survey, Des Momes, Ia. George F. Kay, State Geologist A list of publications will be sent upon request Most of the papers of the Survey have been published in the Annual Reports, issued since 1892. Separates of the many papers in the Reports may be had for postage, except where they are out of print, and except for vol 1 (1892), 2 (1894) and 14 (1903), where no separates are to be had. Thirty-five Annual Reports have been issued up to and including vol 35 (1929). A charge, plus postage, is made for vols, 4, 5, 7, 8, 9, 10, 28 and 33, others will be sent free upon request, plus postage on from 2 to 6 pounds Space prohibits giving more than a general picture of some of the contents; vols 4, 5, 7, 8, 9, 10, 11, 12, 13, 15, 16, 20, 27, 32, contain, among others, papers on the geology of Iowa, by counties Vol. 19 (1908), 6 lb , contains a number of papers dealing with the peats and coals of Iowa, and has bibliographies of those subjects Vol 22 (1912), 6 lb , contains an annotated bibliography of Iowa geology Vol-24 (1913), 6 lb , contains the analyses of 16 Iowa coals Vol 28 (1917, 1918), price $1 50, 4 lb , completely covers the subject of gypsum in Iowa, and has a bibliography of the sub¬ject. Each volume carries an administrative report and a review of mineral production for the period covered In addition, Technical Paper 2 (1930), Studies of Iowa coals, will be sent free upon request Also a geological map of Iowa, and maps of Iowa showing the distribution of the glacial drift sheets throughout the state, have been issued and are available

Jan 1, 1933

By R. W. Brauchli

The author has made a statistical analysis of the relations between recovery and length of cores, diameters of cores and of drill pipe, and cost of coring under different contractual conditions. The data are presented in tabular form. The length of the core appears to play a minor part in the percentage recovered, with a tendency to lower percentages with increased core length; approximately 50 per cent of the length cored is normally recovered if the cores are more than 2 in. in diameter. The diarneter of the core has a more pronounced influence on the recovery; 1 3/8-in. cores average 29.1 per cent, 2 1/8 -in. core 53.4 per cent and 3 1/8-in. cores with 6 5/8-in. drill pipe 68.5 per cent. Where 31/8-in cores were taken with smaller diameter drill pipe, i. e., 4 1/2 - in. drill pipe in 8 1/4-in. hole, the recovery dropped to 49.8 per cent, indicating that the more rigid drill pipe favors good core recovery, a conclusion also borne out by the results obtained in using large drill pipe for smaller diame-ter cores. Surprisingly good recoveries were obtained from both the Johnson and Simpson sands; shale, limestone and dolomite each gave less then average recoveries. No serious fishing jobs resulted from coring operations. Attention is called to the need of a core drill which will make it possible to drill a full-sized hole while coring, and thus reduce the cost of cores. Data pertaining to core drilling should be consistently recorded, such as, diameter of drill pipe and collar, diameter of core, recovery, size of cutter heads, type of core-barrel, coring time, speeds of rotation and of pumps, weight on core-barrel, etc.

Jan 1, 1933

By Arthur Knapp

OIL-WELL depletion curves, to be of value, should show when a well or lease may no longer be operated at a profit. The difference, at any time, between the total expenditures and the total income of a lease or well may be called the lease status. Plotting this lease status against time will give a curve subject to more accurate and different interpretations than the barrels-time curves. According to the hypothetical barrels-time curves shown in Fig. 1, well A, at the end of 16 mo., is producing twice as much oil as well B and will continue to produce for another year whereas well B will cease producing in about 6 months. DATA FOR LEASE STATUS-TIME OR DOLLARS-TIME CURVE TIME LEASE MONTHS STATUS Lease purchased for $3000 0 -$ 3,000 No expenses chargeable to lease for 3 mo 2 - 3,000 Well A is started; cost of drilling for month is $16,000 3 - 19,000 Well is completed at additional cost of $10,000 4 - 29,000 Well A is brought in and flows 10,000 bbl. first month (see Fig. 1). Necessary to invest in tanks, boilers, pipe lines, etc.: difference between expenditures and receipts gives profit for month of $5,000 5 - 24,000 Investment is small, cost of operating well A is small, so profits are $15,000 6 - 9,000 Well ceases to flow so there is additional investment for pumping equipment and additional operating expense; net earnings from 6,000 bbl. of oil produced is $4,000.... 7 - 5,000 Lease operation now becomes normal and curve becomes smooth 8 - 500 9 2,000 10 4,500 11 6,000 12 7,700 13 8,700 14 9,000 15 9,500 16 10,000

Jan 1, 1921

By E. I. Larsen, F. R. Hensel

According to statements by Guertler1 Smith and Hamilton were the first to study the copper-titanium alloys, but owing to the presence of large amounts of impurities their data are inconclusive. M. A. Hunter and I. W. Bacon later investigated the electrical conductivity and the temperature coefficients at room temperature. The present writers reported their results2 in November, 1930. Recently Kroll published data on copper-titanium alloys3 which agree closely with those obtained by the authors. Material Tested The titanium used was in the form of square sintered rods, the analysis of which runs as follows: titanium, 95.4 per cent; silicon, 0.7; iron,l.8; aluminum, 1.4; copper, 0.1; manganese, 0.05. The ingots were prepared in a high-frequency induction furnace in air atmosphere. Their analyses are given in Table 1. Up to 5 per cent titanium the alloys could be forged. Above that amount they were red short and broke up easily. Owing to their rapid absorption of nitrogen and oxygen from the air, the alloys with the higher amounts of titanium tend to form surface films which greatly increase the casting difficulties, especially when small masses of metal are handled. It was, however, possible to prepare sound ingots up to 25 per cent titanium. Thermal and X-ray Investigation The cooling curves of some of the alloys are plotted in Fig. 1, and R tentative diagram constructed from these data is given in Fig. 2. From this it is evident that the solid solubility of copper for titanium is approxi-mately 4 to 5 weight per cent titanium at 878" C., which is the eutectic temperature. The melting point of copper is lowered gradually by adding

Jan 1, 1932

By E. V. Daveler

THE milling plant of the Alaska-Gastineau Mining Co. is located at the town of Thane, Alaska, on Gastineau Channel, 4 mi. south of Juneau and directly across the channel from the Ready Bullion mine of the Treadwell mines on Douglas Island. Previous to the organization of the Alaska-Gastineau Mining Co., in 1912, the milling was done at the stamp mill of the Alaska Perseverance Co. located at the mine in Silver Bow Basin. But the contemplated increase in production made it necessary to locate the mill on Gastineau Channel, as not enough water was available at the mine during the winter months, nor was there room for taking care of the large tonnage of tailings that would ultimately be discarded from the mill. CHARACTER OF ORE The gold and silver values occur in quartz lenses associated with pyrrhotite, galena, arsenical pyrites, and zinc blende. These lenses occur in large bodies of slate, schist, and metagabbro, which also carry some valuable metallic contents. With the essential low cost of mining, it was necessary to mine large bodies of low-grade material containing the high-grade streaks. Of the minerals, pyrrhotite, the magnetic sulfide of iron, is predominant, and galena is the next sulfide present in quantity. The gold occurs free and coarse and associated with the iron sulfide in its finer state. The silver occurs with the lead or is alloyed with the gold. A chemical analysis of the ore shows Silver 0.10 oz. Magnesia 0.4 per cent. Silica 59.7 per cent. Sulfur 1.2 per cent. Iron 5.2 per cent. Lead 0.1 per cent. Alumina 21.4 per cent. Zinc 0.2 per cent. Lime 5.0 per cent.

Jan 1, 1920

By C. David Mann

Metal prices continued to improve in 1964, resulting in the opening of new mines and re- activation of old ones. Larger and deeper shafts are being bored. At the AEC's Nevada Test Site, a 72-in. diam shaft is being bored to 3200 ft. In New Mexico a 1650-ft shaft was bored with a 48-in. bit, then reamed to 124 in. to 935 ft, and 102 in. to 1650 ft. Deviation was only 26 in. In California a shaft sinking machine has been developed which combines drilling and mucking equipment into one mobile, integral unit.

Jan 2, 1965

By Thomas L. Watson

MY thanks are due to Mr. Frank Firmstone, Easton, Pa., who has called my attention to the statement in my papers that " Barite, fluorite and quartz, though not observed in the Tennessee area," . . . as possibly misleading to the reader, if construed to mean that such a discovery had never been made. Mr. Firmstone is correct in assuming that this statement referred only to the study of the worked areas of the metallic ores, especially zinc, made in the course of the survey upon which my paper was based. The occurrence of barite and fluorite with lead-ores in Tennessee was reported by Prof. Safford,2 in 1869, and by Safford and Killebrew,3 in 1887, with the further statement that about 1,000,000 lb. of barite were annually mined in Greene, Washington and Jefferson counties, Tenn., and that considerable deposits occur also in McMinn, Smith and other counties. It is also noted that the barite ".usually occurs in veins, associated with galena." The present worked areas of barite are, however, distinct barite propositions, without workable quantities of either lead or zinc, so far as mining operations have gone, and the areas are more or less removed from the present areas of zinc-ores. Mr. Firmstone informs me also that, in 1892, he observed, in the magnesian limestone at Watauga Point, in Carter county, on the left bank of the Watauga river, a little below the mouth of Buffalo creek, small quantities of galena and some fluorite.

Jan 1, 1907

A SELF-RESPECTING miner doesn't wash the cuttin's off his hard hat until he quits his job but, on the other hand, he keeps his lamp clean and a "spot" focus on the work at hand; the former habit is a matter of pride and the latter serves for efficient operation. During 1949, the mining engineer got all the "wet raises" for the problem of cutting costs to meet the drop of metal prices and keeping research work up to schedule when strikes tied up his work were his headaches. We note, not without admiration, that he hasn't washed the muck off his hat in token of surrender but, on the contrary, his light shines bright on the job to be done as can be seen in the following pages. Few people have any conception of how much ore and rock have to be mined and how much sorting it takes to cull a pound of copper from a 1 % ore body. These people would be even more startled to picture the problems faced by the engineer in mining and extracting, profitably, .2 oz of gold from a ton of ore as is done at some of our lode mines. Strikers have sometimes kept our researchers from their pilot plants and research laboratories, but the end of the year shows progress in making ore out of taconite and ferruginous sandstone, with a pilot plant in operation at Aurora, Minn., and plans for one near Birmingham. Unfortunately, it looks as though the mining engineer will have to make John Doe secure in mineral resources in spite of himself. Coal for steel, power, and to warm our homes is still economically possible, in spite of Mr. Lewis, through development of mechanized tools for mining. During the year, the use of continuous mining machines has extended, transport systems are being adopted to keep the ore flowing from the face to the tune of 40 tons per man-shift. Experiments in the gasification of coal are going forward in several places and may eventually extend our fuel reserves by the addition of coal seams now too lean for mining. Liquid fuel from coal, oil shale, or natural gas will become economic when oil consumption exceeds our supply; but, at less than 30 cents a ton direct cost for mining oil shale, the engineer is almost making it competitive under present market conditions. In this age of specialists, the mining engineer is still holding his own as a broad-gauge man. As a matter of fact, he is emerging from a stage of semispecialization as a coal, nonmetallics, or metal mining man to the realization that, with mechanization, mining is fundamentally materials handling whether it is fluorspar, coal, or copper ore. From the coal business come rubber-tired mechanical loaders to the iron mines of Birmingham. Shuttle cars are also finding application in the lead mines of the Tri-State. Open-pit methods are universal. Belt conveyors, trucks, Diesels, and mobile, jumbomounted drills are finding application in all types of mining. In preparation, such methods as flotation,- heavy density, electrical, and centrifugal are finding application in coal, nonmetallics, and metals. These concepts have been recognized by the mining engineer who has kept himself informed and has been quick to seize a method, machine, or a process from another operation and, with ingenuity, applied it to his problems. This, our Annual Review issue, is written by mining engineers. In gathering these separate articles under one cover for publication, we think of it as a trrbute to the tireless energy and skill of these men. They get little of the publicity accorded physicists, medical men, labor leaders, or company executives, but they supply raw materials without which industry would die.

Jan 1, 1950

By Russell G. Haworth

Three companies, United States Potash Company, Potash Company of America, and International Minerals and Chemical Corporation, are now operating potash mines and reGneries in the Carlsbad, New Mexico, area. The three mines are located approximately twenty miles east of Car1sbad. The deposits have been found ideal for mechanized mining methods. This summary has been compiled from information made available by the three operating companies. Prospecting Since outcrops of potash are nonexistent, prospecting is accomplished by drilling and coring of the salt section to establish the grade, thickness, and outline of the potash beds contained in the salt deposits. Information regarding the nature of the formations in the cover of 400 to 600 ft thick over the salt and potash beds is also obtained from drill cuttings in the same operation. By proper interpretation of assembled data the best location for shafts may be determined. The overburden varies in character but consists in general of interbedded shales, sand, gravels, limestones, and anhydrite beds. Water, in unpleasant quantities, especially in the sands and limestones, often completes the geologic section. Some of the shaftas in the area have been sunk without undue difficulties, others have been delayed by flows of water. Most of the shafts are concreted from the surface to the salt section. Each of the three mines in the Carlsbad area has one shaft for hoisting ore and one for hoisting men and supplies. Mining Methods Information acquired from initial drilling and prospecting affected the choice of mining methods. Since the tabular, slightly rolling deposits were similar to coal seams, the room-and-pillar system used in coal mining was adopted by all the companies. Pillars have not been removed in any of the mines on a large scale. One company has conducted experimental robbing of pillars in one restricted area. Where it is known that overlying strata contain water in large amounts, it is not considered practical to risk flooding of the mines by removing pillars without fill. Some thought is now being directed toward development of economical methods of filling for pillar recovery. The problem is not identical at the three mines and local conditions will govern the methods employed for eventual pillar recovery. The important point is that, with large reserves, it has not been necessary to resort to mining of pillars for adequate production. The ore deposits are laterally extensive but are irregular in shape and lie at a depth of 700 to 1100 ft below the surface. The major operations of all mines are on the same bed strati-graphically, except for the langbeinite level at International Minerals and Chemical Corporation. The deposits are apparently not connected and in many parts of the deposits being mined, "salt horses" or barren zones occur. From 400 to 700 ft of salt with minor beds of polyhalite and anhydrite lie immediately above the ore horizon. The ore differs from the salt only in the potassium chloride content and color due to small amounts of iron associated with the sylvite, giving the ore a somewhat mottled red and white cast. Thickness of the ore varies from 5 to 14 ft. Rooms and break-throughs in the mines vary from 24 to 40 ft in width, the overlying salt forming an excellent roof and providing safe mining conditions. Almost no timber is used in any of the mines for roof support. Drilling is normally the first step in mining the face of a room. Electric motor driven auger drills are used in the area. Jack hammers were used to some extent when the mines were first opened but the ore is easily drilled if bits are sharp and the coal type

Jan 1, 1950

By Davis M. Lapham

Ore bodies at Cornwall, Pennsylvania, have been mined since 1742 principally for iron from magnetite, but also for copper (in chalcopyrite), silver (in chalcopyrite), gold (in chalcopyrite), cobalt (in pyrite), sulfur, and crushed limestone aggregate. Metallization occurs as a limestone replacement above the essentially conformable, south dipping portion of a discordant saucershaped diabase sheet. Pre-Triassic and Triassic faulting have emplaced host Cambrian limestone and two Ordovician(?) hornfels units, now for the most part resting above diabase. Thermal metamorphism of carbonate-bearing country rocks largely to calc-silicates, is ubiquitous. Metasomatism, particularly of potassium, is unique to ore zones. Associated magnetite- actinolite mineralization replaces, in a preferential sequence, all earlier metamorphic and metasomatic minerals and rarely diabase chilled margin. Mineralogical (diopside, actinolite, mica, sulfides, oxides) and chemical (Fe, Cu, S, Co) zoning of the eastern ore body is focused down dip, near its western edge, along a major vertical fault through diabase. This zoning is spatially related to magnetite veins in diabase, to an ore body within diabase, and to a shear zone that probably extends through the sheet.

Jan 1, 1968

By H. D. Outmans

In steady vertical flow, the interface of an immiscible liquid-liquid displacement is horizontal for any flow rate below the critical. In nonvertical flow, however, the shape of the interface in the steady state does depend on the flow rate, and the purpose of this paper is to calculate the unsteady interfaces during the transition of one steady state of flow to another. A knowledge of these transient interfaces is of considerable importance in reservoir engineering where the calculation of breakthrough recovery depends on the instant the interface reaches the producing wells and on the shape of the interface at that time. Although the emphasis is put on transient interlaces, which eventually approach stable equilibrium, it is shown that if the displacement exceeds a critical rate no equilibrium is possible. The interface is then unstable and viscous fingers are formed during the displacement. The critical rate and the shape of the transient and equilibrium interfaces are affected by the effective interfacial tension; but since this effective interfacial tension appears in the calculations only in combination with the inverse square of the thickness of the medium, its effect in the reservoir would appear to be negligible compared to its significance in model experiments. INTRODUCTION Stability criteria and the early growth of interfacial disturbances in a plane parallel to the boundaries of a dipping formation in which oil is displaced by an incompressible fluid were described in a previous paper.l This type of instability is significant in thin reservoirs. However, if the reservoir has appreciable thickness, then interfacial stability in vertical planes, normal to the upper and lower boundaries, also becomes important (the displacement is supposed to be parallel to these vertical planes). The difference between the two stability problems is that, in the first case, the intersections of the interface with planes parallel to the boundaries are normal to the direction of the displacement; in the second case, the intersections, this time with vertical planes, are not normal to the displacement. Instead, they are tilted at an angle which depends on the displacement rate. The tilt of steady interfaces was calculated by Dietz2 who also determined the critical rate of displacement for stability in the vertical plane by assuming that this rate would coincide with an interfacial tilt equal to the dip of the formation. The critical rate thus calculated is the same as has been found for thin reservoirs (see Eq. 1.1 of Ref. 1 and of the present paper). Dietz's calculation of the stable tilt was verified by laboratory experiments and the agreement was found to be fairly good.3 It is doubtful, however, that stable tilts actually exist in the reservoir because a change in production rate is not followed by an instantaneous adjustment of the interface to the new rate but, rather, by a transition period during which the interface changes from one equilibrium tilt to the other. The principal objective of this paper has been to describe these transient interfaces without putting any restrictions on the flow conditions or the shape of the interface, as had been done previously. The second objective was to compute the critical velocity, taking into account capillary effects, and the third was to evaluate, at least qualitatively, the shape of the front at rates above the critical, again without making the simplifying assumptions introduced by previous investigators.2,3 In the following sections two examples are given of the calculation of interfacial motion. The first describes this motion for an initially horizontal interface in a dipping layer, and the second for a vertical interface in a horizontal layer. The mathematical formulation of the problem is nonlinear in the boundary conditions, and this prohibits its solution in closed form. Instead, the solution is obtained in the form of higher-order approximations. 1 Before proceeding to a description of the mathematical model, however, we define two quantities

A comprehensive, systematically structured mineral evaluation system is a prime requirement for objectively assessing mineral supply impacts on the economy. The Minerals Availability System developed by the US Bureau of Mines is a step in the right direction-a well-organized unraveling of the mineral supply network, structured in format to allow quick retrieval for rapid listing, supply analysis, and other uses.

Jan 9, 1977

By J. G. Baragwanath

CUBA'S lateritic iron ores, occurring on the northern coast of that island, though known to the Spaniards. did not receive any general attention until the close of the Spanish-American War. Preliminary studies of these deposits at that time indicated that the limonite contained small percentages of nickel and chrome, and it ryas subsequently discovered that although the average nickel content was only approximately 0.6 per certain limited areas of ore were suffiniently high in nickel to be considered commercial provided a suitable process fur its recovery could be developed. Early in 1937, Pardners Mines Corp. began a series of investigations which led to the development of such a process. Coincidentally, this company acquired option' on certain properties in the Levisa Bay and Moa Bay regions and conducted a systematic campaign of exploration by test pits and hand-auger holes in the course of which an aggregate of 90.000.000 tons of ore was developed in eight deposits.

Jan 1, 1945

By W. C. PAGE

ALL mine ore here must be concentrated before shipment, which involves selective flotation. Three products are made: lead, zinc, and pyrite concentrates. The equipment and practice are so well outlined in the accompanying flow sheet that only a few amplifying remarks are necessary. After crushing at the mine to approximately 4 in., the ore is carried by aerial tram about 4 1/2, mi. to the mill. From 1800 to 2000 metric tons per day, excluding Sundays, is thus transported. At the mill, the buckets are hand-tipped into the bins. After crushing to pass a ¼ -in. square opening, the ore may be stored in reserve crushed-ore bins or ball-mill feed bins as desired. Total bin capacity at the mill is about 4000 metric tons. The concentrator is arranged in three independent grinding sections, each fed from its own storage bin. Grinding operations follow standard practice, with ball mills in single-stage closed circuit with classifiers, the overflow from which is delivered to the lead circuit rougher flotation machines,

Jan 1, 1936

By Rclssell Gibson, F. S. Turneaure

The tin deposit of Monserrat; Bolivia, consists of one major vein 1600 m in length. The ore is unusual because of the notable quantity of teallite, even though cassiterite is the principal tin mineral. The deposit, formed at shallow depth under a wide range in temperature, may be classed as xenothermal. Polished sections reveal a complex history of replacement, with low-temperature minerals deposited before high-temperature minerals.

Jan 1, 1950

By R. G. Lazzell

THE British are worried about the postwar possibilities of their coal mining industry. Indeed, there are causes for this worry, with the aver- age 1943 cost of production at about $5.40 per long ton, compared to $3.20 in 1938. Average production per man day has dropped from 1.12 in 1938 to 1.03 long tons in 1943. As a comparison, production per man day in the United States is approximately 5 long tons. The average day wage in the British mines is now a little aver $4; in 1938 the average day wage was about $2.25. Great Britain produced 227 million long tons in 1938 from their deep mines, and in 1943 production was 194.5 million, with an additional 4.5 million from strip mines. To meet present wartime needs, output is being supplemented by the production of strip- mined coal, an industry that did not exist prior to the war. Strip mining is now producing at the rate of 15 million long tons per year.

Jan 1, 1944

By L. R. Smith

BUTANE OPERATED drilling rigs are a recent innovation in the petroleum industry, so extensive data on their operation are not available. However, experience indicates that, within limitations, as much can he accomplished with butane as with steam, at a decided reduction .in expense of installation and cost of operation. Commercial butane is a liquid motor fuel similar to gasoline, but much more volatile, so that it has to be stored under pressure. At 10° F. it is liquid at atmospheric pressure, but at 100° it has a pressure of 70 lb. or more. As soon as the pressure is reduced, it turns to vapor and in that state is far more easily mixed with the air necessary for combustion. Butane occurs as a by-product in the absorption process of natural gasoline extraction from casing-head gas. The product has been used to some extent 10 raise the octane value of gasoline. However, because of its volatile nature, such admixture is stable only to a limited degree. Attempts also have been made to introduce the product in a gaseous form into oil- hearing formations in repressuring work. It has, however, until recently, for the most part been wasted.

Jan 1, 1937

By E. Kendall Cork

The traditional financial objective for a single mine company has been to operate as frugally as possible and to pay out most of the earnings as dividends. If the business is cyclical (as it is for most metals) the dividends might fluctuate quite widely. When the mine is exhausted the company disappears. This is still quite a viable strategy for a single mine company. It is not however a viable strategy for the world as a whole. The mining industry is built by mine development companies who can mobilize the people and capital to bring new mines into production. Their skills must include marketing, engineering, finance and other politics. It is very rare for a property to be brought in without the support of a major company that can provide all these services. The exceptions will usually have some other form of big brother support, for example the U.S. government uranium contracts at guaranteed generous prices. The mine development company will seek as a minimum to perpetuate itself by developing new mines in order to replace those which are running out. The more common and more ambitious objective is to grow -- that is to add to its ore reserves and current production by developing more new mines. The financial objectives for that company are very different. Obviously if all the earnings were paid out in dividends there would be nothing left to work with. The first financial policy then is to spend an appropriate amount on exploration for new properties. The next is to retain enough of the earnings to provide the capital for new projects at least sufficient for the equity. There is no magic formula as to what proportion of earnings should properly be distributed as dividends by a growth-oriented mine development company. As a rough rule of thumb distributing half or more will probably leave too little to work on and 30% or so is probably a good balance. However the circumstances differ widely from company to company. It may be useful to set an objective for the rate of growth of a company's earnings. Some have picked rates such as 15% per annum compounded. Others have set a target in real terms which might appear as 10 or 11% plus inflation. Obviously the arithmetic of compound interest is very attractive; however in practice there is much variation. Indeed current returns from existing operations swing widely with the business cycle and there is no assurance that economic new properties will be found according to someone's arbitrary time schedule. For example, Western Mining Corporation Limited in Australia explored for 30 years with little to show for it, but then found the great Australian nickel deposits and more recently the huge Roxby Downs copper. That long dry spell could not have fitted anyone's arbitrary calendar of growth and yet they would not have found such orebodies without that long period of effort. Should they have abandoned the search? Once a new property has been found or acquired there has to be a threshold rate of return on the new capital to be invested against which to evaluate the property's economics. Conventionally this seems to be 15% after tax, a number common in other heavy industries as well. In some cases it is expressed as a lower number plus allowance for inflation. Discounted cash flow analysis is a very useful tool but it does not make the decision. In the end a "go" decision depends on judgment of many factors some of which are numbers used in the DCF calculation whose credibility must be examined. It is curious how frequently investment proposals come in with the rates of return very close to 15%. The project advocates know that a number much less than 15% will not fly and that a number much more is not necessary. With much higher nominal and real interest rates of recent years, even though before tax, logic suggests that the hurdle rate should also rise. The power of compound interest is so great that 20% is very hard to achieve in any cash flow projection but 18% may be a sensible yard - stick. Once again it is remarkable how many project proposals come in with an 18% return. On the record the mining industry as a whole has not been overly restrictive in choosing its hurdle rates of return. This is shown by the abundance of metals in recent years and the failure of metal prices to keep up with inflation. All of the foregoing is standard text book stuff.

Jan 1, 1985