Search Documents

By D. W. Loughridge

INTRODUCTION Raising capital in the 1990s is a timely subject. However, many of us thought why should raising capital in the 1990s prove to be unlike it was in the 19805, the 1970s, the 1%0s, or earlier? There are a lot of creative people in banking and in corporate treasury departments. New tools and techniques are continuing to emerge, many of which are discussed in other papers in this book. While we have new financing tools at our disposal, the underlying issue has not changed. Projects and investments must be judged on their own merits. If they cannot be justified by conventional financial analysis, they should not be built. If they can be justified, it is likely that the financing will be available. The challenges faced in raising capital in this decade will persist to the next. The issues of the 1980s -- currency fluctuation, disruptive merger and acquisition activity, commodity price volatility, political risk, and debt crisis -- will all persist in an increasingly international business environment. I will focus on the financing we have just completed for the Escondida Copper Project in Chile. The Escondida financing is structured along the classic project financing model developed in the late 1970s, but it deals with issues of the 1980s and the 1990s. The financing was intriguing, not just because of the technical issues involved, but also the challenge of reaching an agreement in a large and diverse group. Escondida had the one essential feature that made its financing possible. It was commercially very attractive. It would produce at low cost a commodity (copper concentrates) that direct consumers felt would be in tight supply. The project had the direct support not only of its sponsors, but also its customers, and, very importantly, its host government. The non- recourse financing of Escondida would not have been possible without the support of these parties, and without the robust economics that made this effort worthwhile. The issue was more complicated. Operations in all parts of the world entail some political exposure. This project is in Chile, where there was a constitutional requirement that a plebescite be held when the project would be in its early stages. This plebescite would determine the fate of a 15 year old military dictatorship. The project is copper, a commodity generally deemed to be in surplus. Copper has a history of price volatility (whose price has varied from $.58 to $1.53 per pound over the past two years). It is politically sensitive, not only in Chile, but in the United States, Canada and other developed countries. The project is international, with all the problems of dealing with a variety of currencies, a variety of cultures, and a variety of laws and commercial practices. The project is also large and capital intensive, with a total cost of U.S. $1.1 billion. ESCONDIDA PROJECT Escondida, the largest known copper ore body in the world, was discovered in March of 1981, by Utah International in a joint venture with Getty Oil Company. In 1984, both Utah and Getty were involved in ownership changes, Utah being acquired by BHP. A later restructuring of the ownership of Escondida resulted in BHP, as manager, carrying a 60% interest, Rio Tinto-Zinc Corporation (RTZ) 30%, and a consortium of Japanese companies led by Mitsubishi Corporation with 10%. The Japanese consortium is incorporated as JECO (Japan Escondida Corporation). This ownership structure, which spread ownership around the world, was the first tangible step toward managing both the commercial and political risk associated with the project.

Jan 1, 1990

By P. B. Leavenworth

Twenty-six fields were found in the Texas Gulf Coast in 1940 as compared to 17 fields in 1939. Of these, 14 were oil fields and 12 were gas and distillate. About 150 wells were drilling at the end of the year. Production for the year 1940 amounted to 104,127,247 bbl. as compared to 100,-253,937 bbl. for 1939. Considerable wildcatting for Wilcox production featured the exploration, but discoveries were few and the type of fields found mainly gas and distillate. On the whole, the program was discouraging. New Fields Alta Lomu. Galveston County.—The Alta Loma field was discovered on May 20, 1940, by the Stanolind Oil and Gas Company's No. I John A. Hulen, which blew out at a depth of 9166 it. and ran wild for several days, with an estimated production of 400 bbl. per hour of 36" gravity oil from a sand in the top of the Frio. Water soon appeared but the well produced more than I3o,ooo bbl. of oil between May 20 and June 10, together with a large amount of salt water. Later the well was killed and recompleted on Nov. 23, for 276 bbl. of 34" gravity oil per day. Probably this was the most sensational discovery of the year, although development to the end of the year was disappointing. The discovery was the result of reflection seismograph work of the Stano-End Oil and Gas Co., the principal leaseholders. Bailey's Prairie, Brazoria County.— Glenn H. McCarthy9s No. I W. B. Munson was completed in a lower Frio sand from perforations 11,345 to II,349 ft. for 8 bbl. of fluid (50 per cent black oil, 27" gravity, and 50 per cent B. S. and W.) on Sept. 24, 1940. It was finally recompleted as a gas well from perforations 11,631 to 11,651 ft., on Oct. 9, 1940. The well had been drilled to a total depth of 11,860 ft. This well produced for only a short time and the area is at present inactive. Blessing, Matagorda County.—The Texas Company's No. I A. B. Pierce was completed from a Frio sand from 8265 to 8300 ft. on July 8, 1940, for an initial production of 29 bbl. of distillate, I 1/2 million cu. ft. of gas. One other gas and distillate well was completed in 1940. Borden, Wharlon County.—J. F. Hutch-ins' No. 2 A. P. Borden Estate was completed on Feb. 11, 1940, for 108 bbl. of 35,6° gravity oil, from a Frio sand at 4758 to 4771 ft. This is the second well drilled in the area by Hutchins. Two other wells in 1940 were failures and there was no activity at the end of the year. Dyersdale, Harris County.-The Dyers-dale field was opened by the completion, on Sept. 15, 1940, of H. C. Cockburn's No. I G. Burkitt from a sand in the top of the Frio, through perforations from 4067-4072 ft., for 240 bbl. of low-gravity oil. By the end of the year the field had been fairly well outlined and did not appear to be a major discovery. Duck Bay, Calhoun County.—Coronado Oil Company's No. I Welder, alter having drilled to 10,002 ft., perforated casing from 5654 1/2 to 5659 it. and was completed for 60 bbl. of 36.8° gravity oil On July 27, 1940, from a Miocene sand.

Jan 1, 1941

By P. B. Leavenworth

Twenty-six fields were found in the Texas Gulf Coast in 1940 as compared to 17 fields in 1939. Of these, 14 were oil fields and 12 were gas and distillate. About 150 wells were drilling at the end of the year. Production for the year 1940 amounted to 104,127,247 bbl. as compared to 100,-253,937 bbl. for 1939. Considerable wildcatting for Wilcox production featured the exploration, but discoveries were few and the type of fields found mainly gas and distillate. On the whole, the program was discouraging. New Fields Alta Lomu. Galveston County.—The Alta Loma field was discovered on May 20, 1940, by the Stanolind Oil and Gas Company's No. I John A. Hulen, which blew out at a depth of 9166 it. and ran wild for several days, with an estimated production of 400 bbl. per hour of 36" gravity oil from a sand in the top of the Frio. Water soon appeared but the well produced more than I3o,ooo bbl. of oil between May 20 and June 10, together with a large amount of salt water. Later the well was killed and recompleted on Nov. 23, for 276 bbl. of 34" gravity oil per day. Probably this was the most sensational discovery of the year, although development to the end of the year was disappointing. The discovery was the result of reflection seismograph work of the Stano-End Oil and Gas Co., the principal leaseholders. Bailey's Prairie, Brazoria County.— Glenn H. McCarthy9s No. I W. B. Munson was completed in a lower Frio sand from perforations 11,345 to II,349 ft. for 8 bbl. of fluid (50 per cent black oil, 27" gravity, and 50 per cent B. S. and W.) on Sept. 24, 1940. It was finally recompleted as a gas well from perforations 11,631 to 11,651 ft., on Oct. 9, 1940. The well had been drilled to a total depth of 11,860 ft. This well produced for only a short time and the area is at present inactive. Blessing, Matagorda County.—The Texas Company's No. I A. B. Pierce was completed from a Frio sand from 8265 to 8300 ft. on July 8, 1940, for an initial production of 29 bbl. of distillate, I 1/2 million cu. ft. of gas. One other gas and distillate well was completed in 1940. Borden, Wharlon County.—J. F. Hutch-ins' No. 2 A. P. Borden Estate was completed on Feb. 11, 1940, for 108 bbl. of 35,6° gravity oil, from a Frio sand at 4758 to 4771 ft. This is the second well drilled in the area by Hutchins. Two other wells in 1940 were failures and there was no activity at the end of the year. Dyersdale, Harris County.-The Dyers-dale field was opened by the completion, on Sept. 15, 1940, of H. C. Cockburn's No. I G. Burkitt from a sand in the top of the Frio, through perforations from 4067-4072 ft., for 240 bbl. of low-gravity oil. By the end of the year the field had been fairly well outlined and did not appear to be a major discovery. Duck Bay, Calhoun County.—Coronado Oil Company's No. I Welder, alter having drilled to 10,002 ft., perforated casing from 5654 1/2 to 5659 it. and was completed for 60 bbl. of 36.8° gravity oil On July 27, 1940, from a Miocene sand.

Jan 1, 1941

THE following employment items are made available to AIME members on a nonprofit basis by the Engineering Societies Personnel Service, Inc., operating in cooperation with the Four Founder Societies. Local offices of the Personnel Service are at 8 W. 40th St., New York 18; 100 Farnsworth Ave., Detroit; 57 Post St., Son Francisco; 84 E. Randolph St., Chicago 1. Applicants should address all mail to the proper key numbers in care of the New York office and include 6c in stamps for forwarding and returning application. The applicant agrees, if placed in a position by means of the Service, to pay the placement fee listed by the Service. AIME members may secure a weekly bulletin of positions available for $3.50 a quarter, $12 a year. MEN AVAILABLE Geologist-Petrographer. Experienced subsurface geology and petrographic rock and mineral identification. Desires position as either geologist or petrographer. M-682. Geologist, 36, married, employed. Nine years' experience geology connected with engineering, includes planning and supervising core drilling programs, study of stratigraphy and structure, special problems, report writing. Three years' teaching experience. Desires responsible position offering opportunity for advancement with progressive concern. Will travel part time. Available reasonable notice. M-683. Mining Executive with record of accomplishment organizing and directing efficient low cost mining and ore dressing operations available for position in the United States. Broad experience engineering, mechanized mining, flotation, safety, union labor relations and preparation of reports. Married. Employed; available upon reasonable notice. M-684.

Jan 1, 1952

By M. van Swaay, C. E. Birchenall

A. S. lBrling (Johnson, Matthey & Co. Ltd., Laboratories)— Because of its initial emphasis upon the production of membranes by powder metallurgy and by normal casting and rolling techniques, this paper is of considerable interest to those concerned with the design and application of industrial diffusion units. As the subsequent performances of the three grades of palladium were not compared in detail, it can perhaps be concluded that specific permeabilities were very similar. A short table in which the absolute diffusion rates obtained by the Authors with their three grades of palladium were compared with those of other investigators18-25 would, however, have been of particular value in view of the very variable results obtained with this membrane material. The Authors state early in the paper that the permeability of the thoriated samples decreased in much the same way as that of the nonthoriated samples. Later, they emphasize that sintered palladium without thoria was very susceptible to poisoning and did not respond as well as the other materials to the decontamination treatment. These results, which suggest that sintered membranes are less effective than those produced by normal methods, have considerable industrial implications, and amplified experimental details would be very welcome. The results of the Authors differ in one important respect from those of other investigators. Thus, no "bleeding" was required to maintain a constant rate of diffusion, although Davis, Darling, and De Rosset found this to be necessary. Davisz3 found that "bleeding" was necessary even when the hydrogen had already been purified by diffusion through a palladium tube, and it would be of value to know the purity of the gas stream emerging from the purification train shown on Fig. 1 of the Authors' paper. The Authors show that diffusion rates varied according to the square root of the pressure difference providing that the palladium membrane was not contaminated in any way. This finding is in agreement with the results of those workers2,18,19,23,24 who diffused their hydrogen through the membrane into a partly or completely evacuated system.Those workers who did not find this square-root law dependence did not have a partial vacuum on the downstream-side of the membrane.'' The difference between the two experimental con- ditions appears to be significant, as the absolute diffusion rates per sq cm of diffusion area are lower when the square-root law dependence is not observed. While the effect could be attributable to poisoning of the membrane it is conceivable that a positive pressure on the downstream side of the membrane might influence the mechanism of diffusion. In view of the capricious behavior of palladium, factors of this type, which are likely to influence its industrial significance, should be carefully considered. M. van Swaay and C. E. Birchenall (authors' 9-eply) — Our Eq. 191 may be compared with several others for hydrogen diffusion in palladium: D = 5.95 x exp (-5770/1)' D = 3.55 x 10"3 exp (-5550/)' D = 4.3 x 10"3 exp (-5620/1')' Other values are given in the literature, but in many cases surface poisoning may have affected the results. No analysis was performed on the hydrogen gas stream after purification. It should be noted that the presence of liquid nitrogen traps near the heated membranes may have set up convection currents and provided the equivalent of "bleeding." The question of whether a partial vacuum existed on the downstream side of the membrane is not clear. Does it imply that there is something unique about the permeability measured near one atmosphere pressure? We do not believe that there is. When square root pressure dependence is not observed, diffusion rates are not measured. Is "absolute diffusion rate per sq. cm. of diffusion area" equivalent to permeability? The terminology is new to us. In any case we doubt very much that pressures of the order of several atmospheres can affect the mechanism of diffusion.

Jan 1, 1962

By T. B. Massalski, Horace Pops

Martensitic transformations were observed by optical metallography and electrical-resistivity measurements during cooling at cryogenic temperatures of the bcc pr-phase Au-Zn alloys. The com-position dependence of the MS, MF, AS , and AF temperatures have been determined. It is concluded that the martensitic platelets which grow mainly in the lengthwise direction and which are associated with a very small temperature hysteresis are "thermoelastic" martensite. In some cases the observed structure seems to have no definite crys-tallographic habit or consists of a mixture of- plates and broad transformed areas. THE majority of the bcc /3-phase alloys in systems of copper, silver, and gold with zinc and cadmium are unstable at low temperatures and undergo a transformation upon further cooling into another structure. A large number of such transformations are martensitic. The composition dependence of the Ms temperatures has been determined and reported for CU-~n,' Ag-Cd,' and AU-C~~ alloys. The 50 at. pct ordered Au-Zn p' alloy has been reported by Jan and pearson4 to transform martensitically at 58°K in connection with their study of the de Haas-van Alphen effect The p' phase in the Au-Zn system has the ordered CsC1-type structure. The phase field is shown in Fig. 1: it has the typical V shape which is characteristic of all copper-, silver-, and gold-based binary /3-phase alloys. There appears to be no a priori reason why the transformation should be limited to the equiatomic composition and the availability of a cryogenic stage for optical metallography5 has permitted studies down to the liquid-helium temperature of a series of alloys in this system. EXPERIMENTAL PROCEDURE Predetermined weights of 99.999 pct pure gold and zinc were melted and cast under a partial atmosphere of helium in sealed quartz capsules. Thorough mixing of the molten metals was achieved by vigorous shaking, followed by a rapid quench into a brine solution. All ingots were homogenized at 640°C for 4 days. The loss in weight was usually less than 0.04 wt pct and was assumed to be due to

Jan 1, 1965

By F. V. Lene, E. J. Westerman

The recrystallization behaviors of two extruded and cold-drawn experimental sintered aluminum powder alloys, containing 1.75 and 3.0 pct Al2O3 by weight, were compared with that of extruded and cold-drawn commercially pure alumirzum. The kinetics of recrystallization of the alloys are described semiquantitatively. For the alloy containing 1.75 pct A l203 the rates of nucleation and of growth were also semiquantitatively determined. THE most striking property of aluminum alloys strengthened by a dispersion of Al2O3, the so-called SAP alloys, is their stability at elevated temperatures. One of the manifestations of this stability is their resistance to recrystallization after they have been cold worked. Most of the commercial grades of either the Swiss SAP or of Alcoa's Aluminum Powder Metallurgy Products have not been recrys-tallized after cold working, even when they are heated for a long time at a temperature near the aluminum melting point. Lenel, however, observed that the dispersion strengthened aluminum alloys with a larger spacing between the oxide particles than that of most commercial grades would recrys-tallize.1 It appeared to be of interest to further investigate the mode and kinetics of recrystallization of these alloys, and to compare their recrystallization behavior with that of commercially pure aluminum. Because homogeneous deformation of these SAP alloys in tension did not provide sufficient cold work to induce recrystallization, they were cold worked by wire drawing; the nonuniformity of this deformation unavoidably complicated the interpretation of the recrystallization studies. EXPERIMENTAL DETAILS Extrusions—Two types of sintered aluminum powder extrusions were used in this study. One type, designated AT-400, was produced from Reynolds atomized aluminum powder consisting of spherical particles averaging 3µ in diam and containing 1.75 wt pct of Al2O3. This powder was very similar to the R3M powder from which extrusions were previously prepared with an average spacing of 0.9µ between oxide particles.2 The second type, designated MD 2100, was produced from Metals Disintegrating Co. flake powder containing 3.0 wt pct of Al2O3, with an average flake thickness of 0.8µ. The average spacing between oxide platelets in MD 2100 extru- sions was 0.45µ.2 Powder compacts of 3/4-in. diam were extruded at 1000°F into 0.097-in. diam (AT-400) and 0.093-in. diam (MD 2100) wires by methods previously described.3 In order to compare the recrystallization behavior of sintered aluminum powder extrusions with that of wrought commercially pure aluminum 3/4 in. rod stock of 1100 F aluminum was extruded at 1000°F into 0.102-in. diam wire. Wire Drawing—Tungsten carbide dies were used for the AT-400 and 1100 F alloys. They had an included angle of about 15 deg and reduced the wire area approximately 7 pct per pass. Steel dies with an included angle of 11 to 13 deg and an average reduction per pass of 10 pct were used for drawing the MD 2100 alloy, because drawing this alloy through the carbide dies produced overdrawing defects. Heat Treatment—The cold-drawn wires were cut into small samples, and the deformed ends were etched off. The samples were each wrapped tightly in a single layer of aluminum foil, and individually isothermally annealed in a lead bath. Metallography—The modes and kinetics of recrystallization were determined by metallography. Mounted and polished specimens were anodized in a solution of 1.8 pct HBF4;4 examination under polarized light clearly revealed their grain structures. The recrystallized grains were generally much larger than those of the unrecrystallized matrix, and could clearly be distinguished because they alternated between maximum and minimum light reflection when the microscope stage was rotated, while the unrecrystallized matrix had a comparatively homogeneous "salt and pepper" structure. The fractional recrystallized volumes of the dispersion hardened alloy wires were determined by cutting and weighing of recrystallized and total transverse areas on photomicrographs. The recrystallized grains in the 1100 F alloy were too small to be cut out individually; therefore a combination of cutting and lineal analysis was used in this case. RESULTS AND DISCUSSION Modes of Recrystallization—The modes of recrystallization of the three alloys varied widely. In the 1100 F alloy nucleation and growth started in the region midway between the center and the surface;

Jan 1, 1961

The annual world production of minerals approximates 1,700,000,000 tons, over 90 per cent. of which consists of coal and iron. Of this amount about two-thirds is used within the countries where the minerals are produced and one-third is shipped to other countries. The movement of most of these minerals, though, shows a rather remarkable concentration. For instance, manganese moves from three principal sources and converges at four or five consuming centers; chromite and tungsten move from two principal sources. The United States is more nearly self-sustaining in regard to mineral commodities as a whole than any 'other country on the globe; but the interests of conservation - call for an international viewpoint in the handling of our mineral resources., There is perhaps as much need of specializing in mineral output as there is of specializing in manufacturing. The thought that every country on the globe should be self-sustaining in regard to mineral supplies is of somewhat the same order as the thought that every family should produce all its own raw materials rather than take advantage of the more favorable conditions existing elsewhere and so specialize in human effort. Extension of international control of minerals seems to offer possibilities of loss and gain-loss through a considerable sacrifice of national trade .and a narrowing of the field for private initiative in trade; gain through the possibility of attaining certain ends which are attainable only by international agreement, such as an allocation of supplies which will be to the advantage of the greater number of nations rather than to the advantage of the few that are strong enough to dominate the situation. The interests of conservation clearly require international control. Moreover, the lesson of the war points to the necessity of overhauling old international understandings and machinery, even though such a task would encounter great difficulties, not the least of which lie in the persistence of human habits and inertia. Whether the time has come to establish a league of nations with economic control can be determined only by our individual and collective answers to the question whether we are willing to make the necessary economic sacrifices, individually and nationally, in the interest of world harmony. The mineral industry should fully understand that, with international control, efforts to promote export will need to be modified and curtailed; that expansion of our trade in many lines will mean equivalent loss of trade to other nations; that the almost universal conception that expansion of foreign trade is a meritorious aim and end in itself, without regard to its effect on other countries, will need revision.

Jan 3, 1919

We the undersigned, being all persons of full age and citizens of the United States and a majority residents of the State of New York, desiring to form a corporation pursuant to the provisions of the Membership Corporations Law for the purpose of incorporating, as provided in Section 5 of Article I. of said law, the existing unincorporated association known as American Institute of Mining and Metallurgical Engineers, Incorporated, do hereby make, acknowledge and file this Certificate for that purpose, and do Certify as follows: I. That the American Institute of Mining Engineers is an unincorporated association organized and existing with the object of promoting the arts and sciences, connected with the economic production of the useful minerals and metals and the welfare of those employed in these industries by means of meetings for social intercourse and the reading and discussion of professional papers, and to circulate by means of publications among its members and associates the information thus obtained. II. That the persons duly appointed or designated to manage the affairs of said association are designated by the rules thereof Members of its Council; that the undersigned are all members of said Council as the same was constituted on the 29th day of December, 1904. III. That on said last-mentioned date a regularly called meeting of said association was held at its office in the Borough of Manhattan, City of New York; that thirty days before such meeting notice of the intention to incorporate said association was given by mail to each member thereof whose residence or post-office address is known; that at said meeting the following resolutions were offered, seconded and duly adopted by the unanimous vote of all its members then present, to wit: "Resolved, That it is the sense of the members and associates of the American Institute of Mining Engineers in general meeting assembled that it is desirable and necessary for the well being of said association and its members and for the furtherance of the objects for which the same has been formed, that said association incorporate under the Membership Corporations Law of the State of New York; "And Further Resolved, That the Members of the Council of this Association, or a majority thereof, be and they hereby are authorized, in accordance with the provisions of Section 5 of Article I. of the Membership Corporations Law, to incorporate this association for the same purposes for which it has been organized and conducted, in the manner provided in Article II. of said law;, "And Further Resolved, That the name of said corporation as hereby adopted by this meeting shall be American Institute of Mining Engineers; "And Further Resolved, That the said incorporators shall be named in the Certifi¬cate of Incorporation as directors of such corporation until its first annual meeting,

Jan 1, 1940

By AIME AIME

MILLING called for four sessions and a luncheon and covered broad ranges from speculative theory to basic practice, and from coal to gold. An attractive and profitable feature was the "get-together" of "coal preparers" and "ore dressers" for mutual discussion of their common problems. The first event was the Milling Luncheon in the Engi¬neers' Club on Monday. A concentrated group of high¬grade appeared and many matters were discussed, but only two called for official action: The meeting unanimously recommended the use of the Tyler standard sieve scale as against any new scale, and also the adoption of micron designation for fine particles in place of decimals of an inch or millimeter, or theoretical mesh size. The real sessions began on Monday afternoon with a menu of Mineral Physics for the ore dresser, metallurgist, geologist, physicist, et al. Four papers by the staff of the U. S. Bureau of Mines dealt with the chemical and physical aspects of mineral structure as revealed by the first two years of research to date. A fifth paper by Dr. M. J. Buerger correlated to the foregoing the knowledge of "The Lineage Structure of Crystals" and finally a sixth paper was a progress report of further developments of the last year in explosive shattering of minerals by the U. S. Bureau of Mines.

Jan 1, 1933

By Elizabeth L. Robinson

INTRODUCTION The financial structure of the mining industry has changed strikingly over the last thirty years. The changes that have taken place in the last ten years include both the acceleration of adverse trends in familiar balance sheet numbers and ratios, and the subtle but extensive increase in the complexity and diversity of funding sources, both on and off the balance sheet. The objectives of this paper are: 1. to briefly trace the evolution of trends in the mining industry's financial structure; 2. to focus in more detail on changes in the last decade; and 3. to analyze those trends both within the framework of capital structure theory, and in the context of changes in business and economic conditions. This survey focuses primarily on the mining companies listed on the major U.S. stock exchanges, since financial data for these firms are readily available. The producers of minerals are a diverse lot, however, and the quantitative data on "the mineral industry" as characterized in this survey fails to encompass the financial arrangements for the bulk of production worldwide, whether owned by governments or private-sector enterprises. Even large portions of the U.S. minerals industry - subsidiaries of still larger firms, medium-sized privately-held companies, and the small miners - were not included in the quantitative part of the analysis. THE EVOLUTION OF THE INDUSTRY'S FINANCIAL STRUCTURE In the aftermath of the business failures of the Great Depression, most borrowers and lenders considered minimal debt on the balance sheet the soundest policy. By the 1950's, however, a body of literature was developing which demonstrated that the use of leverage could improve the value of the firm, given a corporate tax structure which allows interest, but not dividends, to be deducted from income. Optimal Capital Structure The objective of undertaking a new project is to improve the wealth of the current owners of the firm. If internally-generated funds are insufficient to allow growth at the desired rate, the company can raise funds either by issuing new equity, or by incurring debt. The most attractive source is the one which will provide the funds for the lowest cost. Both stockholders and lenders expect to receive compensation for use of their funds at a rate which reflects two things: (1) the return they could earn in alternative investments, and (2) the riskiness of the projected return. Factors which increase business risk include the variability of demand, sales prices and input prices, and "operating leverage", or the proportion of fixed to variable costs. In addition, from the investors' point of view, the use of financial leverage concentrates risk onto the shareholders, because lenders enjoy a prior claim in the event of bankruptcy. So although financial leverage can increase a project's expected rate of return, and therefore, presumably, earnings per share, too much debt will be perceived as uncomfortably risky by equity investors, and have a negative effect on stock prices. In theory, then, there should be an optimal level of debt which the firm's managers should seek to obtain in its financial structure. The desirable proportion of debt should in general be lower for a firm with a higher inherent business risk. In addition to their own judgement, financial managers are sensitive to the attitudes of lenders, rating agencies, and investment bankers in setting financial targets (Scott and Johnson). In practice, financial structure will also depend upon the company's growth rate and level of profitability, and conditions in the capital markets at a given time.

Jan 1, 1985

By Mark J. Klein, Robert A. Haggins

The pesence of a small amount of oxygen was found to cause significant grain growth restraint in 99.99 pct Ag. This behavior does not seem to be due to the presence of an oxide dispersion, but instead, to be related to the existence of minute amounts of oxygen m solid solution. In the amounts necessary to cause the observed effects it was found that oxygen migrates with extreme rapidity, probably along extended structural imperfections, such as dislocations and grain boundaries. A number of years ago, hastton' observed that the presence of small amounts of oxygen caused a retardation of grain growth in silver. He attributed this behavior to the formation of a fine dispersion of oxide particles by the internal oxidation of trace impurities. More recently, wood2 also found that oxygen caused grain growth restraint in copper. Experiments using both copper and a dilute solution of aluminum in copper led to the conclusion that the effects observed in copper were due to oxygen in solid solution, rather than an oxide dispersion. During the course of a study of the influence of several solutes on the recrystallization of Silver, the presence of minute amounts of oxygen was found to exert a very significant influence on grain growth. The experiments reported here were undertaken to determine whether the grain growth restraint observed in silver due to the presence of oxygen is related to oxygen in solution or to an oxide dispersion. Because of the difficulty in measurement and control of the very small oxygen concentrations causing the observed effects no attempt was made to treat the data in a quantitative manner. EXPERIMENTAL PROCEDURE AND RESULTS Silver of 99.99 pct purity was melted and cast into slabs in a vacuum of better than 0.1 p. These slabs were reduced 50 pct by cold rolling to a thickness of approximately 2.5 mm. Samples cut from this material were annealed in vacuum for a series of different times at 803°C. Another group of samples was similarly annealed in air. This temperature is well above the recrystallization range for silver of this purity (150" to 200°C). The mean grain diameter of these samples was measured, both in the center and near the edge, using the line-intel-cept method, and is shown as a function of annealing time in Fig. 1. The grain size in the centers of the samples annealed in air was found to be larger than that of the surface regions, while the grain growth behavior of the edge and center regions annealed in a vacuum was approximately the same. he edge measurements were taken at a distance of 0.2 mm from the surface.) A few samples were annealed in nitrogen. Their behavior was identical to that of the vacuum-annealed samples. Samples annealed in oxygen had approximately the same grain growth behavior as those annealed in air, leading to the conclusion that this behaviouer is due to oxygen. The microstructure of a sample annealed in air at 803" for. 30 minutes is shown in Fig. 2. The smaller grain size near the surface is characteristic of the iir-annealed specimens. Possible causes of this grain growth restraint in the air-annealed specimen are the formation of an im-

Jan 1, 1962

By Elliot Rexford

The quality of aggregate materials is of major importance in governing durability and permanence of concrete structures. The problem of selecting suitable aggregate materials is two-fold. Geological factors include the type and character of the aggregate source, presence of known or suspected reactive constituents, and presence of thermally incompatible materials. Laboratory investigations include petrographic studies, soundness and reactivity tests, and tests of thermal properties. The importance of each factor in the selection of satisfactory aggregate material is considered in detail.

Jan 3, 1950

ENGINEERS AVAILABLE, (Under this heading will be published notes sent to the Secretary of the Institute by members or other persons introduced by members) Member, aged 33, technical graduate, B. S. and E. M., soon to complete contract in Spanish America, desires to get in touch with employers. Ten years mine, mill, cyanide and construction experience. Prefers executive position or assistant to executive. No. 352. Member; University graduate, desires responsible position with good company. Married.' Age; 37. Fourteen years' experience in Australia, Mexico and United States, milling, cyaniding and concentrating, gravity

Jan 5, 1917

YEAR OF ELECTION 1922. FEDERICO GIOLITTI Torino, Italy. 1917. HERBERT HOOVER Washington, D. C. 1941. DANIEL COWAN JACKLING San Francisco, Calif. 1939. HENRY KRUMB New York, N. Y. 1942. Essington Lewis Melbourne Vic., Australia 1921. C. McDERMID London, England. 1942. PAUL DYER MERICA New York, N. Y. 1913. EZEQUIEL ORDONEZ Mexico City, Mexico. 1938. A.M. PORTEVIN Paris France 1937. JOHN V.W. REYNDERS, New York, N. Y. 1937. GEORGE S. RICE Washington, D. C. 1911. ROBERT H. RICHARDS Cambridge, Mass. 1934. T.A. RICKARD Victoria, B.C., Canada

Jan 1, 1943

By J. F. Gormley

Drill pipe, and the connections used to join the pipe together, have had a long history of development and improvement. With the growing use of high tensile-strength pipe, the rotary shouldered connections used to join the lengths of drill pipe have become more critical. Fatigue-type failures of rotary-shouldered connections, or tool joints, have become a cause of much conern to operators and manufacturers. Most fatigue tests on tool joints have been made on the basis of bending moment applied vs number of cycles, rather than on the basis of stress vs cycles. A desire to learn more about the nature of stress in a tool joint due to bending caused a rather intensive experimental study to determine what actually happens to cause fatigue failure. It was known that a tool joint with insufficient make-up torque was subject to early fatigue failure. Therefore, the establishment of the relationship between make-up torque and allowable bending moment would enable a testing engineer to better correlate the results of various tests. The problem of calculating the stress in a tool joint due to an applied bending moment was complicated by: the effect of unknown stress concentrations; the applicability of the well known formula S = Mc/I; and the question of whether to use the combined cross section of the pin and box in calculating the moment of inertia I. TEST EQUIPMENT The test equipment consisted of the following. 1. A lathe modified to act as a fatigue machine for full-size tool joint or drill-collar specimens. 2. An adapter plate bolted to the headstock of the lathe and into which a short adapter was screwed. 3. Tool-joint pins on sections of drill collars bucked into the adapter. 4. A hydraulic load cylinder which rested on the bed of the lathe and applied bending moments to the joints. 5. Paper-backed strain gauges (FAP-12-12, 1/8-in. gauge length and A-5-1, 1/2-in. gauge length). 6. Eastman 910 contact cement for bonding gauges to joint and Epoxylite 222 waterproofing. 7. A 12-position switchbox, SR-4 bridge balancing unit connected to an SR-4 strain indicator to read the gauge output. 8. A four-channel Sanborn recorder, Model 150, was used as the readout instrument for part of the testing. The fatigue machine was well suited as a loading device. Because of the long lever arm available, the change of moment with distance was small; consequently, the vertical shear stress was small, less than 300 psi. Some difficulty was experienced with the hydraulic load cylinder at high bending moments due to leakage. The strain gauge equipment was simple and quite reliable. A 41/2-in. extra hole (E. H.) joint with "as machined" threads and shoulders and a 2 7/8-in. internal flush (I. F.) joint with copper-plated threads and shoulders were selected for testing because of their common usage in the field. In addition, the 4 1/2-in. E. H. was suitable because it had an inside diameter large enough to permit the insertion and accurate positioning of strain gauges without using special jigs, while the 2 7/8-in. I. F. joint required much lower bending loads to cause separation of the shoulders of the joint when made up to the recommended torque. The joints were made to standard API specifications, except for very small bevels on the box and pin shoulders and cylindrical stress-relief grooves added to the pins. Larger bevels would have

By W. H. Bassett

BERYLLIUM was discovered in 1798 by Vauquelin and the metal was first produced by Wohler in 1828 about a year later than his production of metallic aluminum. Beryllium remained dormant until about 1920 when the production of the metal by the electrolysis of a molten bath was carried out by Stock in Germany, closely followed by Dickinson in the United States and by Vivian in England. This may not have been the first time the electrolytic method was thus used but was the beginning of present-day methods. I believe the first commercial attempts in this country started with the Kemet Laboratories about 1924. Siemens & Halske in Germany were working on the same problem at about the same time. The work of the Kemet Laboratories was transferred to the Beryllium Company of America and later to the Beryllium Development Corporation. In 1926 1 made a considerable study of the beryllium¬copper alloys, using beryllium purchased from the Beryllium Company of America, and read a paper on this subject at the February, 1927, meeting of the A.I.M.E. However, I failed at that time to discover the properties of precipitation hardening which such alloys have in a very marked degree. After this publication the work on beryllium-copper alloys rested awhile. One cause for this was the difficulty of securing a supply of beryllium-at least at what might be considered a reasonable price. In 1926 the price was $200 per lb., a figure which held about the same both in this country and in Germany until the beginning of 1932, when it was offered here at $50 per lb. if taken in the form of a copper alloy which carried about 121/2 per cent beryllium. Somewhat later the 121/2 per cent alloy dropped to $25 per lb. of beryllium contained, which is the present price. Promise is made that with a greater consumption, production on a larger scale warrants a reduction in price to $10 per pound or less.

Jan 1, 1933

By Samuel G. Bonasso

The article by Benavides and Schuster provides an in-depth study of this transportation alternatives for a four-mine complex in western Kentucky. The examination of aerial tramways was not undertaken as an alternative solution. We feel this is an oversight since industrial ropeways are competitive with both belt conveyance and overland truck hauling. In fact, there are aerial tramway system, operational today, which are 100 years old and operating with some original components. Maybe unfortunately, there are no fixed rules or guidelines whereby the most cost-effective means of transporting and handling material for a given situation may be selected. Each situation must be evaluated m the variables that influence the selection of the desired alternative can be clearly defined. However, there are in-place industrial ropeway system that have proven economically feasible over a range of 1.6-50 km (1-31 miles). The more difficult the terrain, the greater the cost efficiency.

Jan 1, 1984

By H. V. Winchell

An examination of the Pachucal and El Oro districts in July, 1920, although cursory and incomplete, disclosed facts of more than passing interest to the student of ore deposits; and inasmuch as the literature on these districts is limited and some of their features are little understood, a brief account may prove valuable as reconnaissance observations to be amplified by more thorough and competent observers in the future. Where no complete monograph of important mining camps has been published a partial presentation of the data is often useful, as it sometimes leads to fuller and more accurate descriptions, by stimulating discussion. The following notes are presented with the consent of A. F. Main, managing director of the El Oro Mining and Railway Co., whose fund of information and wide acquaintance with both districts alone made it possible to cover so much ground in a short time. I have also to acknowledge gratefully the aid of C. A. Lantz and D. S. Calland of the Santa Gertrudis and Real del Monte companies, respectively, in connection with permission to inspect geological features of interest in their mines. Pachuca, Hidalgo, Mex. This mining camp has been described by Ezequiel Ordonez2 and by A. F. J. Bordeaux.3 Reported to have been discovered in 1522, it has produced silver valued at between $250,000,000 and $375,000,000. Subsequent to the discovery here, by B. de Medina, of the patio process. in 1557, its production was increased, and now, using cyanidation, the output of the camp is nearly one-sixth of the production of the world. Topography and Climate The Pachuca district consists of a series of mountains and valleys, the minor features of which extend in an easterly and westerly direction and reach elevations of 8000 to 10,000 ft. (2438 to 3048 m.) above the

Jan 1, 1922

By Anthony Anable

HOOVER DAM, rapidly nearing completion in the Black Canyon of the Colorado River at Boulder City, Nev., taxes the superlatives of the vocabulary to describe. For by all odds, it is the largest construction project of its type ever essayed by man and the plants providing the essential materials of construction are also in a class by themselves not only in size but in advanced design, mechanization, and accurate control. Picture, if you will, the great aggregate plant, as it is called, situated about 4 mi. upstream from the site of

Jan 1, 1934