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By E. H. Wells, A. Andreas

New Mexico retained its position as the sixth largest oil-producing state for the year 1937 with a total production of 38,484,630 bbl. This was an increase of 11,680,184 bbl. over the 1936 production of 26,804,446 bbl., or a gain of 43 per cent. The production for Lea County during 1937 was 35,961,056 bbl.; for Eddy County, 2,136,251 bbl.; and for northwestern New Mexico (San Juan and McKinley Counties), 387,323 bbl. The average daily non-marginal well allowable for Lea County on Jan. 1, 1937, was 92 bbl.; at the close of the year it was 67 bbl. The average daily pipe-line runs were less than the allocations of the New Mexico Oil Conservation Commission, but slightly in excess of the state allowables recommended by the United States Bureau of Mines. The average daily production for the year was 105,437 barrels. The total number of completions in the state was 742, of which 638 were oil wells; 19 hydrocarbon gas wells; 5 carbon dioxide gas wells and 80 dry holes. Of the dry holes, 46 were in proven fields. Of these 46 dry holes, 13 were in the Artesia-Grayburg-Jackson-Maljamar area, Eddy County, two in the Getty Extension field, Eddy County, 11 in the Red Mountain field, McKinley County, three in the Rattlesnake field, San Juan County, and nine in the Aztec-Bloomfield area, San Juan County. There were only eight dry holes in the proven fields in Lea County. Southeastern New Mexico Lea County.—The Monument field was the largest producing field in Lea County, with 10,945,788 bbl., closely followed by the Eunice field with 10,927,929 bbl. The Hobbs field, formerly the largest producing field in Lea County, was relegated to third .place, with 7,292,522 barrels. Drjlling during the year closed the gap between the northern part of the Eunice field and the southern part of the Monument field. The wells in this area were relatively small, because of decreased porosity in the lime. The greatest activity in Lea County was in the Monument pool, with 199 completions, 197 being oil wells, one a gas well and one a dry hole.

Jan 1, 1938

By Dudley L. Davis, E. C. Peterson

INTRODUCTION THE Darwin District is 30 miles east of Olancha which is 220 miles north from Los Angeles via U. S. Highway No. 6. The ore deposits occur in the Darwin hills that have been elevated above the Darwin Plateau by typical basin and range-type faults. Some of these faults have been active quite recently as shown by the displacement of Quaternary (?) basalt flows and the rejuvenation of erosion in Darwin wash. The ore bodies occur as fissure fillings and replacement of favorable beddings in a thick series of Paleozoic limestones, dolomites, shales and quartzites. Rich oxidized lead-silver ores were discovered in the early seventies. By 1875, Darwin had a population of about 5000, and by 1880 several small mills and smelters had been built. Early exhaustion of surface ores, the isolated location of the district, and fluctuation of metal prices caused intermittent operations until World War II. The district production is estimated at about $3,000,000 prior to 1900 and perhaps $4,000,000 between 1900 and 1945 when Anaconda purchased the major producing mines. For the past two years, daily production has averaged 75 tons of direct shipping and 150 tons of milling-grade ore. At present, 300 tons of mixed oxide and sulphide ore are treated by flotation, the oxidized lead minerals being activated by addition of sodium sulphide after galena and sphalerite have been recovered from the circuit. Extraction averages 85 pct of the lead, 80 pct of the silver, and about 33 pct of the zinc in a bulk concentrate. The mill is designed so that minor changes permit selective flotation of pyritic lead-zinc ores encountered at depth. GENERAL GEOLOGY The oldest rocks in the Darwin hills are a series of Paleozoic limestones, dolomites, shales and quartzites probably Pennsylvanian in age. These rocks have been intruded on the west by the Coso granite batholith and on the east by a granodiorite stock. Numerous sills and dikes grading from orthoclase granite to gabbro are exposed in the underground workings. The sedimentary rocks have been considerably folded and faulted, the most prominent structure being a northwest pitching anticlinal fold, the crest of which lies just west of the ridge line of the Darwin hills. The east limb of this fold has been intruded by the granodiorite stock and east of the stock the sediments show several closely spaced anticlines and synclines. The minor flexures on the west flank of the major fold are structurally important in localizing the ore in the Defiance and Essex mines of the Darwin group. There are three principal systems of faulting and fissuring, most of which are post-intrusive and premineral in age, with minor amounts of postmineral movement. The Darwin tear fault is the largest, most persistent fault in the district. It strikes N 60 to 95°W, dips steeply south and is traceable for about 1o miles. It is a normal

Jan 1, 1947

By J. Armanet

THREE MINING colleges are maintained in France; the École Nationale Supérieure des Mines, of Paris; École Nationale Supérieure des Mines, of Saint Etienne; and the École Supérieure de la Metallurgie et des Mines at Nancy. Besides graduates of these schools, a few graduates of the École Centrale des Arts et MIanufactures and of the École Polytechnique are employed as ]nine managers or engineers; however, most of the latter have taken a graduate course at one of the mining schools.

Jan 1, 1939

By AIME AIME

I am happy to welcome you to the twenty-third conference of the National Open-Hearth Committee, and our joint conference with the Blast Furnace Committee, of the American Institute of Mining and Metallurgical Engineers. It is appropriate that, for our fifteenth year anniversary, we should meet in the hotel and the city where this Open-Hearth Committee was inaugurated in 1925. At that first meeting, only a handful of men from a number of steel companies met to discuss ways and means to start a movement to improve the practical and metallurgical technique of open-hearth operations among independent manufacturers, as the United States Steel Corporation had carried on for many years.

Jan 1, 1940

By J. T. Lapsley, I. I. Cornet, A. E. Flanigan, R. Hultgren, J. E. Dorn

With the greatly expanding use of magnesium during the war, it appeared necessary to the War Metallurgy Committee that procedures of heat treating common magnesium casting alloys be investigated systematically. Accordingly, the National Defense Research Committee of the Office of Scientific Research and Development placed a research contract with the University of California, supervised by the War Metallurgy Committee. Research on the solution heat treatment and aging of magnesium alloy AZg2, (formerly ASTM No. 17; also known as Dowmetal C or AM26o) which was done under "Restricted" Project NRC-2I, in 1942-1943, and reported in detail in a final report to the OSRD on September 3, 1943, is the basis of this paper, which has been released for publication by the OSRD. American experience with magnesium alloys prior to World War II was limited, although some of these alloys had been in commercial use since 1909. Requirements of the aircraft industry for light alloys made it imperative to understand and utilize the advantageous strength-weight properties of magnesium castings. Magnesium casting alloys are commonly solution heat- treated to increase their ultimate tensile strength and ductility; this treatment may be followed by an age hardening at elevated temperatures, which raises the tensile yield strength but diminishes the ductility. In the present investigation, AZp was studied to determine the effects on properties of various solution heat treatment and aging schedules. The principles of heat treatment of magnesium alloys are the same as for other non-ferrous alloys. The alloy studied, AZp, has a nominal composition of 9 pct aluminum, 2 pct zinc, and minor constituents. Fig I shows, by the projection of isothermal sections on the concentration plane, the solubility surface1 of the ternary magnesium-rich solid solutions as determined by X ray 'analysis. From this figure it may be seen that above approximately 375°C (707OF), AZp alloy is a single phase alloy at equilibrium; below this temperature the equilibrium condition is a two phase alloy. The beta constituent which precipitates from the solid solution exerts a hardening effect. Because the zinc concentration is only 2 pct, ancl because of its solubility relations, AZqz resembles a binary alloy of magnesium with aluminum. The solubility curve1 of Fig 2 shows how rapidly the solubility of the beta phase decreases with decreasing temperatures. Unlike many aluminum alloys, magnesium alloys do not age harden at room temperatures; precipitation hardening of AZ² alloy is performed at about 177°C (350°F). At this temperature about 3 pct aluminum

Jan 1, 1949

By Dudley L. Davis, E. C. Peterson

Introduction The Darwin District is 30 miles east of Olancha which is 220 miles north from Los z4ngeles via U. S. Highway No. 6. The ore deposits occur in the Darwin hills that have been elevated above the Darwin plateau by typical basin and range-type faults. Some of these faults have been active quite recently as shown by the displacemerit of Quaternary (?) basalt flows and the rejuvenation of erosion in Darwin wash. The ore bodies occur as fissure fillings and replacement of favorable beddings in a thick series of Paleozoic limestones, dolomites, shales and quartzites. Rich oxidized lead-silver ores were dis'Overed in the early seventies. BY 1875, Darwin had a population Of about 5000, and by 1880 several small mills and smelters had been built. Early exhaustion of surface ores, the isolated location of the district, and fluctuation Of metal prices caused intermittent operations until World War 11. The district production is estimated at about $3,000,000 prior to 1900 and perhaps $4,000,000 between 1900 and 1945 when Anaconda purchased the major producing mines. 'or the Past two Years, daily production has averaged 75 tons of direct shipping and 150 tons of milling-grade ore. At present, 300 tons of mixed oxide and sulphide ore are treated by flotation, the oxidized lead minerals being activated by addition of sodium sulphide after galena and sphalerite have been recovered from the circuit. Extraction averages 85 pct of the lead, 80 pct of the silver, and about 33 Pct Of the zinc in a bulk concentrate. The mill is designed so that minor changes permit selective flotation of pyritic lead-zinc ores encountered at depth. General Geology The oldest rocks in the Darwin hills are a series of Paleozoic limestones, dolomites, shales and quartzites probably pennsyl-vanian in age. These rocks have been intruded on the Rest by the Coso granite batholith and on the east by a granodiorite stock. Numerous sills and dikes grading from orthoclase granite to gabbro are exposed in the underground workings. The sedimentary rocks have been considerably folded and faulted, the most prominent structure being a northwest pitching anticlinal fold, the crest of which lies just west of the ridge line of the Darwin hills, The east limb of this fold has been intruded by the granodiorite stock and east of the stock the sediments show several closely spaced anticlines and synclines. The minor flexures on the west flank of the major fold are structurally important in localizing the ore in the Defiance and Essex mines of the Darwin group. There are three principal systems of faulting and fissuring, most of which are post-intrusive and premineral in age, with minor amounts of postmineral movement. The Darwin tear fault is the largest, most persistent fault in the district. It strikes N 60 to 75°W, dips steeply south and is traceable for about 10 miles. It is a normal

Jan 1, 1949

Jan 1, 1962

By D. B. RUSHNORE, K. A. Pauly

Bulletin. No. 41, May, 1910. ABBREVIATIONS. Al. Ind., Alliance Industrielle. am. Elec'n.. . American. Electrician. Bull. As. Ing. El Bulletin de la Association des Ingenieurs Elec- triciens Sortis de l'Institut Electrotecnique Montefiore, Liege. Bull. Soc. bilge d' Elec Bulletin de la Société belge d'Electriciens. Col. Guard . Colliery Guardian. D. R. P Deutsches Reich Patent. Dilly. Poly Dingler's Polytechniches Journal. E. & DI. Jour Engineering and Mining Journal. E. T. Zeit Electrotechnische Zeitschrift. Eclair. Elec. L'Eclairage Electrique. 1;1. Anzeig Elektrotechnischer Anzeiger

Sep 1, 1910

By J. W. Buch

IN THE FIELD of track haulage, interest has seemed to center on the question of larger mine cars both for handling material from loading point to shaft bottom or surface, and for shuttle service. Saving of time in car changing is obvious if larger cars are used. In addition, shorter trips result where car transportation is from face to opening without transfer. This also brings about side-track and equipment savings. Track shuttle service, using large automatic-dump cars (10 tons) between loading machines and trip loading point, has been a satisfactory solution for the operator who mechanizes a working mine regularly equipped with a large number of small mine cars. This development in track shuttle haulage, has made track installation and maintenance increasingly important, requiring closer supervision.

Jan 1, 1942

By Frederick Laist

I. EXPERIMENTAL FLOTATION CONCENTRATION INTRODUCTION EARLY in 1914 it was decided to test, on a fairly large scale, the treatment by flotation of Anaconda slime and mill tailing. For this purpose a standard-type Minerals. Separation machine was installed at the Washoe Reduction Works during May and June, 1914. This was followed by the. installation of a full-size Callow pneumatic machine plant. Experiments were also made, on a smaller scale, with the Froment, the Towne, the Fields, and the Anaconda flotation machines. The last-named machine was developed at this plant. In addition to the tests made in the standard-type Minerals Separation machine some tests were made using a Minerals Separation machine of the sub-aeration type. During the series of experiments a large variety of oils was tested. Experiments were also conducted using both round-table feed and tailing to determine whether it would be better to displace the round tables by flotation for the treatment of the slime, or to supplement the round tables by flotation of the round-table tailing. A series of tests was also made on the treatment of the mill tailing by grinding followed by flotation to determine the relative merits of flotation and leaching for the treatment of this product. In addition, flotation tests were made on mixtures of mill tailing and slime. The round-table feed referred to above is the total slime from the mill. It contains about 35 per cent. colloidal solids and approximately 90 to 95 per cent. of the total solids will pass through 200 mesh (0.067 mm.). It assays from 2.3 to 2.6 per cent. Cu. The mill tailing referred to above is the total discard from the mill, exclusive of the slime. It is all finer than 2 mm. and about 90 to 95 per cent. will remain on 0.25 mm. It assays about 0.60 per cent. Cu. A brief summary of the experimental flotation results follows:

Jan 3, 1916

By Albert E. Wiggin, Frederick Laist

Early ill 1914 it was decided to test, on a fairly large scale, the treatment by flotation of Anaconda slime and mill tailing. For this purpose a standard-type Minerals Separation machine was installed at the Washoe Reduction Works during May and June, 1914. This was followed by the installation of a full-size Callow pneumatic machine plant. Experiments were also made, on a smaller scale, with the Froment, the Towne, the Fields, and the Anaconda flotation machines. The last-named machine was developed at this plant. In addition to the tests made in the standard-type Minerals Separation machine some tests were made using a Minerals Separation machine of the sub-aeration type. During the series of experiments a large variety of oils was tested. Experiments were also conducted using both round-table feed and tailing to determine whether it would be better to displace the round tables by flotation for the treatment of the slime, or to supplement the round tables by flotation of the round-table tailing. A series of tests was also made on the treatment of the mill tailing by grinding followed by flotation to determine the relative merits of flotation and leaching for the treatment of this product. In addition, flotation tests were made on mixtures of mill tailing and slime. The round-table feed referred to above is the total slime from the mill. It contains about 35 per cent. colloidal solids and approximately 90 to 95 per cent. of the total solids will pass through 200 mesh (0.067 mm.). It assays from 2.3 to 2.6 per cent. Cu. The mill tailing referred to above is the total discard from the mill, exclusive of the slime. It is all finer than 2 mm. and about 90 to 95 per cent. will remain on 0.25 mm. It assays about 0.60 per cent. Cu. A brief summary of the experimental flotation results follows:

Jan 1, 1917

By William P. Shinn

It is almost exactly seven years since the last previous meeting of the Institute in this city. In a paper on " Pittsburgh, its Resources and Sorroundings," read at that meeting, I showed that Allegheny County had produced in 1878, " one-twelfth of all the pig-iron,.... two-ninths of all the rolled iron (except rails), over one-eighth of all the Bessemer and open-hearth steel, two-thirds of all the crucible blister and puddled steel, one-fourth of all the glass, one-eighth of all the coal, and one-sixth of all the pig-lead produced in the United States;" and the object of this paper is to show that, great as the record then was, it has been greatly surpassed since.* Population. In my former paper I expressed the opinion that the census of 1880 would show the population of Allegheny County to be in excess of 300,000. The census report made it 355,869. The following shows the growth of the county in population from 1790 to 1880: 1790,...........10,309 1800,........... 15,087 1810,...........25,317 1820,...........34,921 1830,...........50,552 1840.............81,235 1850............138,290 1860............178,881 1870,...........262,204 1880,...........355,869 This makes Allegheny County, in 1880, rank sixth in population of the counties of the United States, whereas in 1870 its rank was ninth. The population of Pittsburgh in 1880 was 156,359, being twelfth

Jan 1, 1886

By AIME AIME

THE Annual Meeting-numerically the 162d meeting-of the American Institute of Mining and Metallurgical Engineers will be held at the Pennsylvania Hotel, 7th Ave. and 33d St., New York, Feb. 18-22, with the exception of the following events: the Mineral Industry Education Division will meet Sunday afternoon and evening at the Columbia University Men's Faculty Club, 400 West 117th St.; and a meeting of the Section Delegates, the annual business meeting of the Institute, and an executive session of the Board of Directors will be held in that order Tuesday afternoon in the Engineering Societies Building, 29 West 39th St., where the Directors will meet in the evening following their annual dinner to the Section Delegates. The Pennsylvania--one of the Statler group of hotels-was selected as headquarters because it has the physical equipment and facilities-for registration, technical sessions of all sizes, luncheons, social events, etc.-as well as the prominence and location desirable for an Institute annual meeting. (A tip for Tuesday afternoon and evening: You can walk underground from the Pennsylvania to within half a block of the Engineering Societies Building,)

Jan 1, 1945

By Hans Lundberg

N OT so long ago, the discovery of an orebody took place only by accident. At the present time mineral deposits, even though concealed, may be revealed by their physical or geophysical characteristics, considered in connection with geological studies. Geophysical methods are based on sound, scientific principles and in no sense partake of the mysteries of "divining-rod " methods. Geophysical methods are divided into two main groups: Group I: Methods where fields of force surrounding mineral deposits are investigated (magnetic, gravitometric, electric) ; Group I1 : Methods where fields of force are applied (produced) and anomalies caused in these fields by mineral deposits are recorded (electric, seismic). By methods belonging to Group I, the investigation of the fields of force may be brought to an astonishing degree of accuracy by means of highly sensitive and delicate apparatus (torsion and magnetic balances) ; at least, in simple cases these methods have proved to be of great value.

Jan 1, 1925

By D. C. Porterfield

ProUuction of crude oil in Venezuela increased from 186,134,000 bbl. in 1940 to 2~8,131,ooo bbl. in 1941, or 22.6 per cent, to establish a new all-time high for the country. While the average production for the year was 625,000 bbl. per day, production during the month of December 1941 averaged 751,000 bbl. per day, and during the last week of the year, 766,000 bbl. per day. Production from the Lake Maracaibo basin averaged 454,000 bbl. per day during the year, or 72 per cent of the total for the country, compared with 73 per cent of the total produced in 1940. Drilling during the year was approximately on the same scale as in 1940, with 438 wells completed in 1941 as compared with 429 the year before. Exploratory completions decreased from 18 in 1940 to 6 in 1941. Of the drilling operations in 1941, 56 per cent was concentrated in the Lake Maracaibo basin and 44 per cent in eastern Venezuela, success being 98 per cent in the Lake basin and 83 per cent in the east. Successful completions for the country as a whole amounted to 92 per cent of the total wells drilled. Exploratory drilling in 1941 resulted in the discovery of three new fields, all in eastern Venezuela; viz., Guara, about II km. to the northeast of the Oficina field but on a separate structure; Santa Rosa, which is east of El Roble field on a structure forming a part of the major Santa -Ana- San Joaquin-El Roble uplift; and Santa Barbara, which is southwest of the Jusepin field on an extension of the main Jusepin anticline. At the close of the year three wildcats were drilling, all of which showed prospects of obtaining production; that is, Mercedes No, 2 in central Guarico, Las Ollas No. I on the Anzoategui-Guarico border near the town of Zaraza, and Quiamare No. I in Anzoategui northeast of the town of San Mateo. In spite of heavy withdrawals and the resultant natural decline in the potentials of older producing areas, new drilling during the year increased the potential production of the country from an estimated 780,000 bbl. per day at the end of 1940 to an estimated 810,000 bbl. per day at the end of 1941, or approximately 4 per cent. Since domestic consumption of petroleum products is insignificant compared with total production, exports of crude and products during the year increased in line with production. Crude exports totaled 196,800,000 bbl., compared with 158,400,-000 bbl. in 1940, and exports of products were 26,100,000 bbl., compared with 21,900,000 bbl. the year before. Exports of crude from Venezuela to the United States amounted to 36,500,000 bbl. In addition, about 2,200,000 bbl. was imported in bond into the United States for transfer to Canada. Total refining capacity of the country in 1941 was approximately 125,000 bbl. per day, including a crude-conversion plant with a capacity of 32,000 bbl. per day, capable of making fuel oil only. Three plants with a capacity of 121,000 bbl. Per

Jan 1, 1945

By R. P. Fischer

The Colorado Plateau region has been the principal domestic source of uranium, vanadium, and radium. The value of these commodities produced from the region through 1964 slightly exceeds $2 billion. Most of the deposits occur in streamlaid lenses of sandstone in the Chinle and Morrison Formations. The ore minerals below the zone of oxidation are low-valent oxides and silicates of uranium and vanadium; all of these, except the quite stable vanadium silicates, oxidize readily to a variety of high-valent uranium and vanadium minerals. The ore minerals partly replace fossil wood but mainly impregnate sandstone, typically forming tabular ore bodies that are nearly concordant to the bedding of the host rock. The deposits range in size from those containing only a few tons of ore to those containing more than 1 million tons. Stratigraphic, lithologic, and sedimentary structural factors obviously influenced the localization of these deposits, but igneous activity, hydrothermal mineralization, and tectonic structures show no similarly consistent influence on localization. The deposits are epigenetic, but the source of the ore metals, the nature of the ore-bearing solutions, and the time of ore emplacement are uncertain. A few uranium deposits in the region are dominantly discordant to bedding and occur in collapsed breccia pipes or along linear fractures. Their origins are also uncertain.

Jan 1, 1968

By J. Pohlig

It is with more than ordinary pleasure that I have complied with the request of the President of the Verein Deutscher Eisenh?tten leute, to read before this meeting and in this country a paper on a system of transport by wire ropeways which, during the past twenty years, has advanced with rapid strides in Europe, and more partic ularly in Germany. America, with its immense network of railways and water communications, should offer peculiarly favorable oppor tunities for the introduction of these ropeways as feeders, more par ticularly in the mining districts, where, as in Europe, a hilly or mountainous region frequently opposes serious obstacles to the em ployment of surface railroads. The importance of the aerial ropeway as a factor in the develop ment of mineral resources deserves the consideration of every mining engineer. As a case in point, the rich iron-ore of the sierra de Bedar in southern Spain, would probably remain untouched to this day but for an aerial ropeway, 15.6 km. (9 3/4 miles) long, which con nects the mines with the shore of the Mediterranean near the town of Garrucha, affording cheap carriage to the nearest shipping point. A railway would have cost about $480,000 (£100,000), but such a heavy outlay would have more than absorbed all prospective profits on the sale of ore. As the aërial ropeway could be built for a little more than one-fourth of that amount, or $124,800 (£26,000), its erection furnished the successful solution of a profitable mining enterprise. This line has been in satisfactory operation for over two yearn; its details will be referred to later. But beside their importance as feeders, ropeways are valuable as a means of conveyance between works and distant warehouses, and between separate buildings in the same works. Their rapidly spreading introduction for such purposes indicates how keenly the necessity of effecting economies is felt under the stress of an everaccentuating competitiop.

Jan 1, 1891

By G. S. Ansell

RCENTLY, in investigating the high-temperature creep properties of an aluminum, SAP-type alloy, MD 2100, fabricated by Professor F. V. Lenel of Rensselaer Polytechnic Institute, Ansell and Weertman1 found unusually low creep rates. These creep rates are 4 or 5 orders of magnitude lower than is predicted by the slowest creep mechanism based upon dispersion-hardened alloy theory. They ascribed these results to a lack of both normal active dislocation sources and a continuous three-dimensional dislocation network. If one couples these results with the following factors of production and microstructure: 1) The compacted and sintered aluminum powder compact is hot-extruded, with an extrusion ratio of 25:1.2 2) The alyminum oxide particles are approximately 140A units thick, and have a spacing varying from 0.05 to 1.5 1. 3 3) The alloy has plate-shaped grains with minor axes of about 5 X 10 -3 mm and major axes several orders of magnitude greater than this.'

Jan 1, 1960

By Peter Allen, John R. Stuermer

COUNTRY RISK ANALYSIS A company operating in a foreign country assumes all the risks that it would at home. However, beyond these, it assumes risks that arise from the unique political economic, financial conditions of the foreign country which it operates. These risks are known as "country risks". The importance of these risks has grown appreciably in the recent past (particularly in the aftermath of Iran's revolution in the late 1970s and Mexico's debt rescheduling of 1982-83), and as a result, country risk analysis has become an increasingly useful management tool. Country risk analysis seeks to assess the probability that countries will service their aggregate foreign liabilities on time, as well as the probability that country conditions could inhibit the debt service capability of private sector debtors. This involves assessment of both the ability and the willingness of countries to meet their external liabilities in a timely fashion. "Ability" is linked economic and financial variables: principally, a country's economic structure, foreign exchange generating capacity and debt service burden. On the other hand, "willingness" is tied to political factors: mainly the economic/financial orientation of government policy and the stability of economic decision making. Ability: Economic, Financial Conditions and Prospects Judgement of a country's ability to meet foreign financial obligations begins with a detailed study of a country's external balance sheet which compares the country's foreign liabilities and assets. Table 1 below presents country balance sheets for Mexico, Korea and Indonesia. [TABLE 1 The External Balance 3-,-et 1983 (billions of dollars; Indonesia Mexico Korea Foreign Liabilities 31.1 67.6 40.5 By Source: Bank 13.1 75.5 26.3 Non-bank 18.0 12.114.2 Foreign Reserves 9.3 4.7 7.0] The large magnitude of Mexico's external debt (nearly $90 billion), compared to foreign assets of approximately $5 billion, illustrates the weakness of this country's external payments position, and the main reason that it has been unable to meet interest and principal payments and been forced to reschedule its foreign debt. On the other hand, the relationship between Korea's external liabilities and assets ($50.5 billion and $7 billion, respectively), is more favorable and helps explain why Korea has been able to meet debt service payments and maintain its access to the international capital markets. Indonesia has even a more favorable relationship between its foreign assets and liabilities, $31 billion and $9 billion, respectively, and its debt is mostly lower interest rate, non-bank debt, making for a less onerous debt service burden. After the balance sheet, the analysis turns to a comparison of the country's foreign exchange earning capacity and its prospective financing requirements, that is, the country's future earnings stream

Jan 1, 1985

By Carroll C. Bailey, William F. Boericke

Mine financing, or providing adequate capital for developing and bringing a mining property into production, is an essential requirement for a successful operation. Today it presents a different picture than even twenty-five years ago. The day appears to be gone when a mining property could pay its own way from grass roots to production. The country has been quite thoroughly combed for surface showings from which sufficient initial profit could be immediately garnered to pay for further development and production facilities. The four M's for success in mining-mineral, market, management, and money-are still essential; but doubled or tripled wage costs and steep advances in cost of equipment and supplies throw increased emphasis on adequate capital funds for bringing in a prospect and making it a producer. Consequently, the old picturesque, although seldom rewarding, grub- staking procedure where a single venturesome citizen might advance funds to a prospector on a fifty-fifty basis for whatever discovery he might find, has largely disappeared. Its place, to some degree, has been taken by the small syndicate of venturesome members who band together for furnishing funds to a group of prospectors for the same general purposes. Such a syndicate has a definite organization and is usually assured of sufficient initial funds, or flow of funds, to carry on work for several years. It is headed by an engineer-promoter who has had considerable field experience as well as personal knowledge of his prospecting crews. For the owner of a potential mining property who has ample capital, the problem is to determine (1) justification for the necessary investment in exploration and development, and (2) the economics of the enterprise as to size and degree of integration of the final operating entity. If the owner of such a property has little or no capital, he also faces these same basic problems but, in addition, must be able to present the findings of fact and persuade the prospective investor that the enterprise will produce

Jan 1, 1959