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By Walter J. Mead

By American tradition, if not by rational decision, publicly owned natural resources have been transferred to private industry for processing. The process of transfer requires specific determination of the price which the patentee, buyer, or lessee must pay to the government in exchange for the right to develop a resource, and selection of the patentee, buyer, or lessee from among several possible contestants. Pricing of natural resources owned by the government presents a set of problems quite different from ordinary commodity pricing. Natural resources in situ are not homogeneous commodities. Within any class of natural resources, specific leasable parcels will differ in value by reason of location and accessibility, as well as quality and quantity. Thus, there is no "going price;" every lease within a specific resource class will have a different value. To complicate further the pricing and buyer selection problems, competition may not be reliable. Natural-resource markets are characterized by oligopsony conditions. In a significant number of cases, as will be shown later, there has been only one bidder for a given lease, and in most lease sales the number of bidders is equal to or less than three. As a further complication, there is great uncertainty regarding the value of specific resources, even among the best-informed buyers, as well as within the leasing agency. In some instances, particularly with regard to oil and gas resources, there may be uncertainty about the presence of resources, as well as the quantity and quality of any resources contained in the tract offered for lease. In other cases, such as oil shale and some deep ocean minerals where new technologies are involved, the presence of the resource is clearly established. There may be a relatively high degree of knowledge about the quantity and quality of the resource, but there is great uncertainty concerning the cost of production. These problems in total make it difficult for the leasing agency to appraise accurately the resource to be leased, as well as for the potential bidder to calculate a bid price that will yield him a normal profit. The pricing goal of the federal government as the seller or lessee may be to capture the economic rent; that is, the price of a resource might equal its discounted present value. A required price substantially above this amount would either generate no bids, or, in the long run, would bankrupt the buyer. A price below this amount is a disguised subsidy to the lessee. A subsidy to mineral lessees, as to any other economic interest group, as a minimum should be justified by a clear showing of net external benefits from the economic activity. In the case of timber sales by the U.S. Forest Service, the Forest Service Handbook asserts that "the aim in national forest stumpage appraisal is to determine market value,"8 and "market value" is equated to "fair market value." Regarding minerals, there is no reference in legislation or regula-

Jan 1, 1976

By WALTER M. DAKE

WITH the renewal of the contract between bituminous miners and operators, whereby a period of three years is assured without the devastating effect of irregularity of operation due to general strikes; and, with the increasing comprehension on the part of the large consumers as to the stabilizing effect of adequate storage upon prices; the coal industry has reached that period of its history in which permanence of purpose towards necessary changes is being crystallized, and these changes accomplished by the industry. It is to be hoped that during this era the phrase- " Our National Coal Problem "-will be relegated to the limbo of' antiquated expressions. That this epoch is upon us is evinced by the fact that operators are turning to consolidations, whereby financially sound companies will acquire smaller production units and place themselves in position to maintain constant supervision and control of their development and output; and, as further proof of the arrival of these changes, may be cited the entrance of additional members of the engineering profession into the many phases of management and operation, where- by the cost per ton of output will be, constantly reduced through the increasing use of modern methods and equipment. As an instance, attention is specifically called to the developments in mechanical loading, proposed and actual continuous underground transportation systems and betterment in methods of preparation.

Jan 1, 1924

By NEWTON B. KNOX

CHILEAN mining in the public mind is rightly associated with copper. Chuquicamata with its great hill of copper-bearing granodiorite as well as Sewell and Potrerillos with mineralized volcanic necks together can supply a good proportion of the world's normal necessities of that metal. Chile is an extremely long and narrow country, averaging only 109 miles wide. Its eastern frontier is the Andes and it is on the western slopes of these mountains that the great copper deposits have been discovered. West of the Andes a great longitudinal depres sion has permitted accumulation of nitrates and other soluble salts in the arid north; in the north center it is hidden by a series of cross ranges, but in the center a moderate rainfall makes it the country's most important agricultural region. In the south this depression is drowned and gives rise to a series of straits and fiords. This enormous cleft in the earth's crust is separated from the sea by a coast range of moderate elevation which in the south is represented by a series of islands and mushroom-shaped peninsulas

Jan 1, 1945

By John J. Collins

The plight of the Japanese mining business is pitiful. Coal mines were given the highest priority for all materials they needed, yet between the end of the war and June 1948, the government was obliged to subsidize them to the extent of 22 billion yen, this being the difference between the consumer's price and the producer's price. Most of the metal mining companies have been operating at only one fifth to one third of war-time production rates, and financial losses have been terrific. The chief difficulties have been a plethora of office workers and a dearth of equipment, supplies, and miners. The principal material needs at metal mines are steel rails. cars, plates, nails, rubber hoses, and belting, to say nothing of modern core drills which are totally lacking. Until recently the great shortage was in coal; for lack of fuel the smelters and factories failed to produce the very metals and equipment now needed to operate the mines. Nation-wide shortages have created a monstrous inflation of prices throughout all the economy, currently amounting to 200 times the prewar figures. For example, the price of copper ranged from 500 to 900 yen per metric ton for many years until 1937, but in mid-1948 producers were

Jan 1, 1949

By Cyril S., Smith

THE phenomenon of air-hardening is well known in connection with special steels. It occurs when the rate of decomposition of austenite to marten- site is so retarded that it takes place on free cooling in air rather than on more rapid cooling in a quenching bath. If an air-hardening steel is quenched sufficiently rapidly it will remain in the soft austenitic state, while if it is cooled very slowly it will again become soft owing to growth of the carbide particles. It depends on a critical adjustment of the decomposition velocity and diffusion rate, and such alloys are rather rare, especially in the non-ferrous field. In carrying out some experiments on some copper- rich copper-cobalt alloys, the author found that these possess very marked air-hardening properties. The alloys are covered by a patent issued to M. G. Corson (1,723,022-1919), which states that an alloy containing between 2 and 5 per cent cobalt is hardened by simple quenching from above 850° C.

Jan 1, 1930

By Arthur Notman

IN VIEW of the wide publicity given to the charges by the Couzens Committee of the United States Senate of discrimination by the Bureau of Internal Revenue in favor of the copper companies, it becomes a matter of interest to consider the basis for these charges. The point to be determined is whether they rest on a foundation of fact or are purely and simply matters of opinion. The whole question boils down to the purpose of the Tax Law as applied to mines, which is to afford the same protection to them as provided for all other taxpayers, namely: that they were to be allowed to pay back as depletion to their owners the values of their properties as they existed or were estimated to exist on May 1, 1913, free from tax. To determine these valuations it was? necessary to select from a wide range of possibilities a set of values for a number of essential factors.

Jan 1, 1925

By W. M. Peirce

COAL'S importance in the metallurgy of zinc may be gauged by the fact that approximately a million and a half tons is so employed annually in the United States. This brief paper will show in what way the various steps in the treatment of zinc ores utilize this fuel, either in its primary form or as coke or gas, and to what extent. The first step in zinc metallurgy that requires the use of fuel is roasting the sulphide ore, which is the type of ore in which zinc commonly occurs. Since the roasting is nearly or completely autogenous, however, this use of fuel is too minor to warrant further attention. Concentration of zinc ores is usually carried out by conventional milling methods, but a pyrometallurgical method, the Waelz process, is used to concentrate certain low-grade ores, and to recover the zinc content of certain residues in concentrate form. The Waelz process uses a continuous rotary kiln in which a mixture of coal and zinc-bearing material is heated to a

Jan 1, 1948

By H. C., Simpson

MANY metals by virtue of their place of occurrence as ore, and their uses are travelers! Iron and steel, for instance, is one of the greatest of travelers in the form of ships and the romance of iron in this respect is only just beginning to be superseded by the stories which can be told of the travels of aluminum and its alloys, used in the building of airplanes. Tin is a traveler from the Straits Settlements to this country and Europe, for use in the canning industry; afterward traveling all over the civilized world as a part of the container for preserved foods. Silver is somewhat of an aristocrat, when its uses are measured against those of the baser metals. From earliest times it has been used for adornment (first perhaps o4 the person and later for the embellishment of weapons and' buildings), for the making of fine ar¬ticles used in the household, and as money. While its uses have been widened by the discoveries in chemistry, electricity and other sciences, its early uses are still much in evidence in our modern life.

Jan 1, 1928

By S. A., Taylor

IT is very difficult to arrive at exact figures for the cost of maintaining excess capacity of coal mines, but we can approximate the various items. To do this, I will take the Pittsburgh district of Pennsylvania and the other districts can be compared to this one. I believe we can take the depreciation item of plant ac- count as a whole and discount it over a period of 20 years; while this is high for some items it is low for others and I believe it is not far from a safe basis. This equals 5 per cent per year, and this depreciation will take place about as rapidly when not in use as when in operation. A fair value in the Pittsburgh district to- day for plant and houses is close to $4 per ton per annum. At 5 per cent this will equal 20 cents per ton per year. The item of keeping the mine in condition, free from water, etc., will be close to an average of 2y2 cents per ton per annum.

Jan 1, 1928

By J. J. Foster

MOST of us will, I think, agree that never before in the history of the coal industry has the human side of our business been so important as today. Since, even in wholly mechanized mining, labor cost is such a large percentage of out total cost we are all deeply concerned not only about the present attitude of our employees but particularly about the future, when the industry returns to a "survival of the fittest" basis. Many things could and should be done about our employee relations in the coal business. Failure to recognize these obligations and do something about them may lead to serious consequences, the least serious of which will be the loss not only of many of our better employees but a large portion of our potential employees, as they graduate from our schools to other in¬dustries. Some of these things should be handled by the industry as a whole whereas others should be done by individual companies. Due to varying conditions and size of organizations it would, at best, be necessary to vary a program to meet the individual needs of each operator.

Jan 1, 1945

By J. J. Brown

Wilkes-Barre Meeting, Julie, runs., THE ore-hearth was the earliest type of furnace used in smelting Mississippi Valley lead-ores, which are very pure, and low in silver-content. The first smelters made no attempts to recover lead from the smoke; and since about 15 per cent. of the lead -in the charge escaped in this manner, early practice with the hearth was decidedly wasteful. At most of the large smelting-plants blast-furnaces with auxiliary roasters were substituted for the hearths long ago. But, upon the introduction of the Lewis and Bartlett bag-process for collecting fume, the ore-hearth was used by companies engaged in the manufacture -of pigments, simply on account of the large percentage of fume made by it. In fact, the extraction of lead was kept down by the use of hot blast and other devices. During recent years, however, several smelting companies have realized that the preliminary roasting of galena for the blast-furnace is not economical, and have, therefore, replaced the roasting-furnace with a modification. of the old Scotch hearth, in which a large percentage of the lead in a charge is recovered directly as pig-lead, while the remainder passes partly into fume and partly into slag low enough in sulphur to be charged into the blast-furnace without further treatment. The results obtained have proved so satisfactory, both As to recovery and operating-expense, that one eminent metallurgist has predicted the universal use of the ore-hearth on non-argentiferous ores. The-ore-hearth, thus employed as an adjunct to a blast-furnace plant, is rather a desulphurizer than a smelting-furnace proper,-the chief object being to make a blue slag suitable for the cupola-furnace. Hence, no special care is taken to obtain from it a large lead-extraction. * Head of Department of Ore Dressing and Metallurgy, Oklahoma School of Mines and Metallurgy, Wilburton, Okla.

May 1, 1911

JAN. 17-In what appears to be a general spirit of post-Christmas emotional malaise, most adult Americans have bidden farewell to the Forties and turned with no perceptible enthusiasm toward the Fifties. The dying decade had started amid a phoney war which verged on the romantic, stirred the pulse with excitement and seemed far away. A phoney peace dominates the new decade. The romance is no longer there. Nor is the excitement. Nor is the distance. While most of the world preferred to be chronologically correct and hold off for another year before celebrating the demise of the first half of the twentieth century, the United States with true competitive enterprise and a great whirl of words scurried into the second half a year early. This undue haste might perhaps have been dictated unconsciously by a yearning for the pattern of history to be repeated. For many centuries, ever since Roman times, the second half of most centuries tended to be far more tranquil than the first half. In Washington, Mr. Truman got on both sides of the mid-century line with all the aplomb of a good politician. He told Congress early in January that "the state of the Union continues to be good," as it nears "the midpoint of the twentieth century." Later he spoke of moving forward into the second half of the century. He promised an infinitely better life for everyone, whichever side of the mid-century line, and reaffirmed his prescription toward that end: assistance for small businesses; more houses for the middle-income groups; tougher anti-monopoly laws, retention of rent controls; development of natural resources; better insurance against the hazards of old age, idleness and unemployment; better medical care and education, civil rights legislation; new labor relations law and production payments to support farm incomes. All this was to be coupled with suggestions on how to balance the budget. The bloody and confusing 1940's had brought to most men's minds a fear of the future such as they had not known for centuries, and Mr. Truman's objective is to temper that fear. Only time will tell whether the terminal point of such a philosophy would or would not belie the old English proverb citing inability to both eat and have a cake. Brave words to the contrary, the national budget persisted in sliding off into the red. The smell of further inflation was equally persistent. And just to impart a little more zip to the trend, the American Federation of Labor announced its intention of seeking "substantial" and "large" wage increases this year. The AFL forewarns of a business slump after June and a 10¢ an hr wage in¬crease for each worker "will be enough to reverse the prospective downward trend and start a rise." Thus it goes-"the way to halt a drop in demand for labor is to raise the price of labor." Elsewhere in the harassed world, beleagured individualists in New York achieved a local triumph of sorts for one of the freedoms denied by the Soviet and Nazi systems-the right of escape, some escape at least, from the servitude to decibels. Grand Central Station weakened perceptibly at Christmas on its 5-min commercials and bore down heavily on "Hark, The Herald Angels Sing," and on New Year's Day capitulated entirely by abandoning the broadcasting of canned music and slugs of advertising slogans. In Europe, M. Bidault's Assembly majority fell away and newspaper accounts of the incredible monstrosities of political trials beyond the iron curtain were supplanted by headlines marking the birth of Princess Yasmin. The latter was surrounded by Byzantine splendor but otherwise showed no apparent deviation from the accepted norm. In Western Germany, Dr. Adenauer began to speak up more boldly, and the whole fabric of Allied policy towards the defeated enemy further dossolved under the impact of rivalry with the Russians. In the Far East both the Americans and British seem somewhat embarrassed by Chiang Kai-shek's refusal to lie down. Dual thinking regarding the "squalid and useless struggle in the China seas" is such that newspapers give sympathetic accounts to an American ship running supplies to the Communists at Shanghai while calling for help for the recognized Chinese government in Formosa. And with Britain recognizing Communist China they may well have to team up with Russia against the United States to kick the Chinese representative off the UNO Security Council, the Far Eastern Commission and the Allied Council in Tokyo. Far Eastern policy has never been a bipartisan matter and as General Chiang retreated to his final redoubts in Formosa and Hainan, a number of Republicans pecked away at Administration lassitude. Senator Smith advocated the occupation of Formosa and Messrs. Hoover and Taft asked for use of the Navy. Mr. Acheson has stood firm, however, against military aid. None the less, a study will be made of the Generalissimo's chances. Mr. Truman has a private purse of $75 million for the Far East and some $94 million in frozen ECA funds. Mr. Truman will likely trade some of this money for support of new Marshall plan appropriations, always mindful, of course, of Mr. Acheson's plan to drive a wedge between the Chinese and Moscow, and his wish to avoid any revival of imperialist nightmares throughout the Orient. Mr. Acheson is very convinced that the victories of Communism in China will be short-lived and South Asia will not fall

Jan 2, 1950

By Frank Rieber

EVERYONE is familiar with the story of the poor Indian and his leaking tepee. He couldn't repair the leak while it was raining, naturally. And when it wasn't raining, where was the incentive? Even if this traditional Indian was apochryphal, his counterparts are certainly alive today, and operating on a world-wide scale. - A recent issue of the Wall Street Journal, for example, carried an impassioned letter from an old cocoa planter, who wants the world to know why the price of cocoa has gone skyrocketing. For years, he says, British and American interests have bought cocoa at the cheapest possible price and, incidentally, from growers willing to sell at that price. Between them, they didn't put enough money back into the business, either to fight disease in the cocoa groves or to plant new cocoa trees. Until new trees are planted and come into bearing, we will be paying exorbitant prices for our cocoa, and getting less of it.

Jan 1, 1948

By A. W. Hahn

USE of gold leaf goes back to biblical and even to prehistoric times. Both gold and silver, as well as other metals, were employed in illustrating or illuminating manuscripts. The medieval monks also used bronze powders. Metals were subdivided as finely as possible by mechanical methods, or by granulation and then were pounded into finely divided flakes. Substances such as honey have also been employed, since early times to keep the flakes of metal apart during grinding. Stearic acid is a more modern agent used in flaking aluminum and other metals. Finely divided "blue powder" is a by-product in retorting zinc ores, and contains from 78 to 90 per cent of zinc metal. This has been used as a precipitant for precious metals in the cyanide process and for chemical reduction processes. The making of zinc dust by atomizing is a step well known in electrolytic zinc plants. The Thermit process of Goldschmidt also requires the use of finely divided aluminum.

Jan 1, 1937

By John A. Mathews

RESEARCH in the steel industry, as in other lines of manufacturing, has for its principal purpose the increasing of profits. That is what manufacturing companies are for, and all departments of the organization must be so coordinated as to lead to profitable operation. To divide a payroll into productive and non-productive labor is misleading. Productive labor, in fact, is necessary labor, and non- productive labor is the labor we can get along without. One might as well say that the steering wheel is not a part of an automobile as to say that the directing minds of an industry are non-productive. Legitimate manufacturing profits in a steel company or any other company are the reward that the public pays for service rendered or risk taken. The desire for profits is the impelling motive that leads investors .to take risks and build up industries that give employment to others. Every department of a company, be it executive, manufacturing, financial, sales, or research, must contribute to the one end which brings success-profits.

Jan 1, 1921

By A. O. Drysdale

In Canada, the market for cement is not a national one but rather a collection of local or regional markets. Excess capacity on a national basis does not necessarily preclude a shortage on a regional basis. with portland cement selling for less than a cent a pound, the low price-to-weight factor makes transportation to the market a major cost item and thus a small plant can be justified to serve a limited regional market. The Brookfield plant of the Canada Cement Co. is designed to supply the Province of Nova Scotia, a regional market that shows promise of growing to a point where it will support a one-kiln plant. The market is presently being served by boat shipments from the Canada Cement Co. plant at Montreal East, Quebec, and from the North Star Cement Ltd. plant at Corner Brook, Newfoundland, and by rail and road shipments from the Canada Cement Co. plant at Havelock, N. B.

Jan 4, 1965

By Paul M. Tyler

DOES mining pay? Inasmuch as the whining of minerals from Nature is one of the world's principal sources of new wealth, this question is of general economic interest but it is obviously of even more vital concern to investors and those engaged in mining. In a previous article on "Wage Costs in the Mineral Industries,' published in the November issue, I attempted to show that wages paid workers on the job accounted for, roughly, 50 per cent of the mine dollar. Salaries normally range over 5 per cent - lower for large metal mines but higher in stone quarries and minor nonmetallic min. in, industries. Purchases of supplies, materials. fuel, and power generally aggregate within the range of 15 to 25 per cent of total receipts, with the average well under 20 per cent. The total of all such specified expenditures which may he loosely described as

Jan 1, 1934

By HORACE V. WlNCHELL

Location. THE St. Helens mining-district, indicated in sketch-map, Fig. 1, is chiefly in Townships 9 and 10 North, Ranges 5 and 6 East, of the Willamette meridian, in Skamania county, Wash. There is no railroad or even a wagon-road at present connecting it with any base of supplies; access is usually by wagon-road for FIG. I.-SKETCH-MAP OF THE STATE OF WASHINGTON. about 50 miles from the town of Castle Rock to Spirit lake, and from that point by pony-trail from 6 to 10 miles farther. History. Nearly 20 years ago two German farmers, totally inexperienced in prospecting, penetrated this region upon a hunting and fishing-trip. Their attention was drawn to numerous joints and crevices filled with black, glistening tourmaline, and con-

Oct 1, 1912

By E. Just

The mining industry is guaranteed an important future because its products are indispensable. However, this can be anything from a brilliant, efficient, profitable future to one of being a heavy-handed, dull-witted claimant for public handouts, according to the caliber and training of the young men who enter the industry. Many views have been expressed about the type of education needed for today's mining industry. Criticisms have been aired to the point that further controversy amongst ourselves could be detrimental to both mining education and the mining industry. It is time we get together and start going somewhere. To canvass the various attitudes of mining educators, a questionnaire was sent to a group of these dedicated, intelligent men, whose primary interest is to help the industry and the profession. The following is a summary of their views.

Jan 9, 1961

By C. M. White

CITIZENSHIP is a rather abstract subject on which a great deal could be said-a subject on which a great deal is said -and still one which too many of us seldom think about and seldom work at. Too many of us engineers and business men have but a vague idea of citizenship. We think that if we go to the polls on election day and obey the laws scrupulously, with the exception of an occasional traffic violation, we are pretty good citizens and are doing our duty by our city, state, and nation. But when you think it over, that's a very passive observance of the important right of counting oneself a citizen of a country. There is nothing very positive in that attitude. There is nothing that indicates that we have sufficient interest to really go out and do a job for the -welfare of our country, forgetting any personal advantages or inconveniences that might arise. In other words, this type of voting-on-election- day, law-abiding citizenship does not keep us awake a single minute; it does not take any particular thought or require the expenditure of any time or energy.

Jan 1, 1939