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By A. B. Parsons

AT the outset, the authors of this paper desire to file a disclaimer and an, explanation. They have no inside information from occult sources; neither of them feigns clairvoyant powers in the slightest degree. It is true that they have indicated on be graphs an approximate trend for the consumption of seven important mineral commodities up to the year 1954. At best this is a risky business; the figures do not pretend to be any- thing more than reasoned conjectures that are predicated on an attempt to evaluate some of the more obvious of the many factors that are likely to have a bearing on the future.

Jan 1, 1937

By H. A. Wheeler

IT may surprise some of our members to learn, among the industries based on the mineral resources of the United States that of clay now ranks third, being exceeded in value of product only by pig-iron and coal. The present annual value of clay-products exceeds the value of the outputs of gold and silver, and also exceeds the combined values of copper, lead, zinc, aluminum, mercury, antimony and nickel. These facts are shown in Table I. which gives the statistics for the year 1902

Jan 1, 1905

By W. L. Honnold

AS BOTH South Africa and diamond mining are unfamiliar subjects it seems best that on such an occasion as this I should endeavor to reflect the atmosphere of the place and to picture the mines from an industrial rather than from a technical standpoint and, because of long absence, my remarks must necessarily be sketchy and in some particulars not up to date. The preferable route to South Africa is via England, direct steamers from America being inferior as to service and effecting no saving of time. The newer boats are of about 20,000 tons capacity and very comfortable. Seventeen days are required for the voyage and only one stop is made-that at the island of Madiera, three days out. Between Southampton, the port of departure, and Madiera the weather may be warm or cold and the

Jan 1, 1925

By GEORGE ROBERT DE BEQUE

WHAT is wrong with oil shale? The answer is of interest to the public, to the oil refiner, and to the engineer. Many people have invested in shale land or shale securities, and others would invest if early development of the industry were certain. In the face of increasing demands for oil products, oil refiners are threatened with inability to maintain present output unless the supply of domestic petroleum is supplemented. Development of the oil shale industry would open a new field for engineering services. The object of this paper is to suggest reasons why there is but one shale plant in operation in the United States, and to discuss the probable time when the business will be firmly established in Colorado. As the Colorado deposits are the richest and largest in the world, ample supply of material is assured, consequently, this discussion will be confined principally to technical problems and economic problems affecting shale development.

Jan 1, 1924

By James R. Finlay

SOMETIMES the American Institute of Mining and Metallurgical Engineers appears to be a strictly technical society, and if so my paper should deal with the technical operations of finding and producing gold. But I have not been engaged in practical gold mining since 1910. What I have been doing mainly for the last 25 years is to try to figure out what the income of a mine-gold, or any other-would be worth to an investor. So I have been in contact with gold mining, in one way or another, for some 42 years. I say that with a purpose. In that time the industry has been through one of its cycles. The value of gold mines is very dif¬ferent at different points in one of these cycles. For this reason the cycle of gold mining is a highly practical study. The cycle of gold is a more or less rhythmical change in its value or purchasing power measured in the grand average of other commodities, which is the same thing as its price. Taking the price of gold in 1897 as a stand¬ard, a dollar at that time declined to 55c. in 1913, to 26.8c. in 1920, and since then it has risen to 47.4c. in 1930 and to about 64c. in 1932. It is worth about 21/ times as much now as it was in 1920, but less than two¬thirds as much as in 1897. When this change is applied to the value of a gold mine still greater differences are evident. The cost of producing gold is of course measured in labor and other commodities, and as that cost goes down the margin of profit measured in the gold itself increases. Thus a mine which might make only 10 per cent profit in 1920 on its gross output may easily make 25 per cent now. The stockholder gets 2 ½ times more gold that is worth 2 1/2 times as much in purchasing power, therefore the real value of his holding has risen by the one factor multiplied by the other, giving him 61/4 times as much goods or services as he had in 1920.

Jan 1, 1933

By A. M. Beebee

IN the present century the coal and manufactured gas industries have been eclipsed in public interest by oil, natural gas, and hydro- electric energy, which have had the benefit of rapid development and novelty. I sometimes wish that our social- order were such that hydro power had been developed first, that the use of gas from coal had never been seriously considered, and that our domestic energy requirements were supplied by other fuels. Sup- pose the manufacture of gas from coal should then come on the scene at the present time with the current plight of the railroads, coal regions, and labor generally, presenting the fact that it could increase the amount of coal mined and shipped by the railroads by some 16,000,000 tons, and increase the coal used at existing u plants five times. Imagine the great public interest that would be manifested; it would supply the cooking and water-heating requirements of a community with a superior character of service at a cost to the customer approximately half that which had obtained previously. Would not such a situation be heralded as the salvation of our country and all help be given it?

Jan 1, 1940

By R. B. Full

DURING the summer of 1949, the United Nations Scientific Conference on the Conservation and Utilization of Resources met at Lake Success. As summed up by one writer, the purpose was: "That everyone will try to learn how to feed more people from an acre of land." That objective is a stimulus to the phosphate rock industry as well as other industries. Phosphate rock was mined first in the Canadian province of Quebec where it was found as an apatite in pockets. In 1863, mining began near the Rideau Canal, first in open trenches and quarries until shafts were sunk. These operations were difficult since hard rock had to be drilled and blasted. Steam was the source of power. The phosphate rock was hand-selected and recovery ranged from 6 to 10 pct, averaging 70 pct to 85 pct bpl (bone phosphate of lime). Costs, f.O.b. Montreal, were $14 a ton, and selling prices averaged $17 a ton. In 1885, about 29,-000 tons were sold on this basis, but by 1892 the output fell to 8000 tons at an average price of $15 a ton at Montreal. South Carolina Deposits Phosphate rock was first discovered in South Carolina in 1837, but a mining company was not formed until 1867. It was immediately successful, and the industry continued to develop and ship an increased tonnage of land and river rock, shipments increasing from approximately 20,000 tons in 1868 to 537,000 tons in 1890, when the shipments began to decrease. In 1892 only 350,000 tons were shipped. In this field there were two types of deposits: land rock and river rock. More land rock tonnage was mined until about 1887 when river rock production began to equal it. The land rock was mined adjacent to and in the river marshes by pick, shovel, and wheelbarrow. Each worker dug daily a space 6 ft wide, 15 ft long and 6 ft deep, which was overburden, and then loaded about 3 cu yd of phosphate rock into wheelbarrows. His helper would wheel the barrows to small steam railroads up to 250 ft distant. Water was kept from the pits by steam pumps connected to railway cars. The phosphate rock was loaded into railroad cars, hauled and dumped into a log washer to which water was added, and run over trommel screens to eliminate the clay and loose sand. Steam shovels for loading were introduced about 1891. River rock was mined by floating dipper dredges and at low tide was loaded into barges by laborers using oyster tongs, the large lumps being hand-loaded. Barges and bateaus were unloaded by wheelbarrows which were wheeled to the same type of land rock washers. The washer product was piled with stacked pine cordwood in alternate layers and fired for drying. Usually this was done under sheds along the river bank. The dried rock then was transferred to ships, usually three or four-masted schooners. Cost of production of both land and river rock, including $1 a ton royalty paid to the state for state-owned property, was approximately $4.25 a ton averaging 60 pct bpl. The selling price was approximately $7 a ton f.O.b. In 1886 the courts handed down a decision permitting anyone to mine, and many additional companies were organized immediately. As a result, the selling price was lowered to a profit margin of 50Ø or less per ton. The South Carolina mines were eventually shut down when a more profitable source of phosphate rock was discovered in Florida. Florida Deposits Phosphate rock was discovered in Florida in 1882, and in 1883 a small quarry was opened near Hawthorne. In 1886 phosphate rock of good grade was discovered on Peace River, and the Arcadia Phosphate Co. was formed. In 1888 the company began shipments amounting to 3000 tons that year. During the latter part of 1888, hard-rock phosphate was discovered near Dunnellon. Exploration extended rapidly, and deposits of hard-rock phosphate were mined over a wide area so that shortly after 1900

Jan 1, 1952

By Samuel H. Dolbear

THE value of a mine is basically dependent on its capacity to yield profits. Since the ore must be mined, treated, and sold, some of it in various future years. there is a risk involved as to future costs, selling price, and working conditions. It cannot be expected that the economic condition existing at the time of valuation will continue unchanged for long periods in the future. During the past 20 years, mineral production in the United States has been conducted under a changing economy in many respects more exacting than that applied to other businesses. There have been increased production incentives, technical aid, exploration of privately owned mineral deposits by government at federal expense, and liberal loans for development and equipment, with risk partially assumed by government.. Some of these benefits have been counterbalanced by price ceilings, consumption controls, and stimulation of competition from foreign producers who have been offered the same advantages extended to American operators. For the present, mines will operate under a government policy directed toward reducing federal aid and control. The tenure of this change will depend upon future elections and the status of foreign relations. War and threat of war are now of the most vital significance to the mineral industries. Other factors which influence cost of production, markets, and price of mine output might be classified as Acts of God or Acts of Government. In some countries expropriation and the difficulty of exporting earnings or investment returns are risks that must be considered by foreign capital. Recognizing that this retards American investment in foreign countries, the Mutual Security Agency offers insurance against such expropriation and guarantees the convertibility of capital and profits. Since it is impossible to predict with certainty either cost of production or selling prices of metals for long periods, some assumptions must be made as to profits in the future. The basic assumption must be that the price of the company's product will vary in proportion to changes in operating cost. There is often a lag in this reaction, however, for prices of minerals are generally more sensitive to declines and less sensitive to increases than are costs. This reflects in part the resistance of labor to downward wage revision and a corresponding alertness in realizing its share of price advances. Some labor contracts include automatic adjustments to metal prices. Notwithstanding the complexity of the, problems involved and the difficulty of weighing their effect on value, such risks may be appraised with reasonable accuracy and a rate of earnings adopted that is compatible with the risk. It is, of course, possible to revert to a yardstick of value such as the commodity dollar, which has been advocated from time to time, but while revaluation in 1933 disturbed public confidence, the theoretical gold dollar continues to be the standard of greatest stability. Its gain or loss in purchasing power is reflected ultimately in cost of production and selling price of the mine product. At present 35 dollars are allocated to one ounce of gold. Measurement of Risk In the application of the Hoskold and most other formulae, a yearly dividend rate commensurate with the risk involved is set aside out of annual earnings. If the risk is great, this rate may be 15 to 25 pct of the amount invested. The remainder is placed in a sinking fund invested in safe securities such as high grade bonds or conservative equities, and the interest or dividends from these securities are added to the sinking fund. The sum of these sinking fund payments and the compounded interest at the end of the mine life is taken as the value of the mine. Admittedly the decision as to the size of the risk rate is the most difficult element in valuation and one requiring the most exacting consideration. It is necessary to look years ahead in an effort to determine future costs, market prices, demand, competition which may develop, including that of substitutes, and other influences common to the mine and to the region in which it is situated. Another phase of risk is the enactment of unfavorable legislation, taxes, and what appears to be an alarming spread of nationalization and expropriation. Capital is sometimes borrowed from the government to finance strategic production. Such loans may be collectable only out of production and involve no liability otherwise. Valuation in these cases must recognize the effect of such a reduction in liability. Offsetting some of these risks are the possibilities of mechanization and other cost-reducing discoveries, improvements in mining and treatment methods, new uses for minerals and metals, and normal growth of markets. In this paper, the terms risk rate, dividend rate, and speculative rate are synonymous. Safe rate and redemption rate are also used interchangeably. These alternatives are used here because they are commonly found in the literature on mine valuation. In Michigan, the State Tax Commission has long employed a risk rate of 6 pct in its valuation of iron mines. There the outline of reserves is well established and operating costs and conditions are based on adequate experience. The following comment on rates appears in the report of the Minnesota Interior commission on Iron Ore Taxation submitted to the Minnesota Legislature of 1941.1 Most engineers agree that 7 percent for the specu-lative rate is "an absolute minimum". C. K. Leith in

Jan 1, 1954

By J. D. A. Morrow

TO my mind the National Bituminous Coal Act so far has proved one of the unhappiest experiences that has ever befallen the bituminous coal operators of the United States. Viewed in the light of its ugly consequences everyone should recognize this measure for what it is -a weird thing as unreal as a page from "Alice in Wonderland." Indeed it might be another stanza to the tale of the Walrus and the Carpenter, with the coal operators in the role of the unfortunate oysters who were taken on that memorable ramble. It is time that coal producers open their eyes, jerk themselves out of any lingering hypnotic optimism about the price-fixing provisions of this law, demand the repeal of these corroding clauses, and then set about remedying as best they can the disastrous effects of this retromingent scheme to regulate the coal business.

Jan 1, 1939

By H. Foster Bain

Steel for any large structure must be imported, the Hanyang works being entirely unable to supply local demand. The United States Steel Products Co. has warehouses and small stocks at Shanghai and at normal times there are heavy importations from Europe. It is difficult to obtain any accurate index of prices, but comparison of customs valuations with Pittsburgh quotations shows angles, bars and plates to have averaged $10 gold per ton higher in China in 1914, while on galvanized and tinned plates the excess was- $38 per ton. The margin since has been greater. Previous to the war little machinery was manufactured in China. There were shipyards at Shanghai and at Hong Kong which built a small number of engines, and small foundry and repair works are found at a number of ports. Their capacity was limited and the difficulties and delays incident to transport in China so numerous that in practice every important mine has a small foundry, boiler works, and machine shop. This must be taken into account in plans for work in the country. While skilled workmen can be found it is to be noted that most of them have been trained

Jan 1, 1921

By ALBERT F. J. BOARDEAUX

(Canal Zone Meeting, November. 191(j.) I. GENERAL INTRODUCTION. 1. Historical. ALLUVIAL gold was first discovered in Guiana in 1852, in the sands of the Arataye river; by Paulino, a Brazilian convict. During the following years, gold was found also in the rivers Orapu, Cirubé, etc. In 1873 the famous placers of the Sinnamary system were opened: Saint-Elie, Dieu-Merci, Adieu-Tat, and Couriége. This group of mines has produced nearly $10,000,000, according to official records, not including the gold that escaped the taxes. The discoverer was a mulatto named Vitalo. Except in a few rich spots, the gold was rather evenly distributed along the creeks. In one instance, gold was found in the red dirt from the slope of a hill, which, after transport to the creek, gave an amount of 150 kilograms. The placers of the Mana system, Enfin, Elysée, Pas-Trop-Tot, date from 1878, and their production has been about $5,000,000. In 1888, the Awa placers, along the boundary between the French and Dutch Guianas, on the Maroni and its tributaries, were discovered. They have yielded $12,000,000. The only industrial company,, the Dutch Guiana French Mining Co., produced in 15 years about 2,500 kg. of gold, worth $1,500,000. From 1893 dates the famous Carsewene discovery, in territory then in dispute between France and Brazil. A settlement was made recently in favor of Brazil, by arbitration of the Switzerland State Council. Carsewene is said to have pro-duced about $18,000,000 in six years (1894-1900), but not even one-fourth of the production went through French Guiana and

Nov 1, 1910

By Daniel Bloomfield

ONE of the major problems of management is how to restore in some measure the personal relation-ship between employer and employed which, in the days of small concerns, meant better morale among employees. The complexity of industry today, the heterogeneous mass. of workers employed, many .of them new to this country and to its institutions, the inability of those whose task it is to get out production to spend much time on the problems of labor-all these and many other factors serve to make of great impor-tance the question of how to establish more satisfactory mutual good will. While there is no such thing as a sure cure for labor troubles, in spite of the fact that charlatans have been selling alleged cures to guileless employers, study and experience have brought to light methods of approach to the problems confronting management in its relation to labor that are well worth consideration. Labor problems must be approached with common sense and an open mind. Facts must be the basis of action. So it is with the question of morale in industry. What makes or breaks morale? What are the forces behind the actions of men? What is there in one man that makes him act differently from another man under similar circumstances? How are men affected by the actions of others in their own group or by the actions of those under whose supervision they work? These are questions that must be carefully studied if we are, to get at the bottom of industrial unrest. It is an easy thing to say that good will can be created by "treating men right." That involves so many things and points of view that it will hardly serve as a full answer to our problem; but it is a good starting point if we mean by right treatment the payment of wages consistent with the well being of the worker and his family as members of the community, and if we also mean the provision of sanitary, wholesome working conditions and a working schedule that does not overtax the worker physically, and mutuality-a give and take relationship. With this as a basis we can go a step farther and see what else can be done to promote better relations between management and the workers.

Jan 9, 1922

By H. Foster Bain

I. INTRODUCTION. By H. FOSTER BAIN.+ THE recently aroused public interest in the conservation of our natural resources has peculiar importance to mining-men, since they deal with resources which are stored products. Within certain limits, the fertility of a worn-out soil may be restored, deforested areas can be replanted, one year's wasted water-supply is followed by another; but coal and ores, once taken out, cannot be mined again, and should therefore be conserved with especial care. This means, however, not that mining should be restricted, but that it should be done most economically and with the minimum of waste.

Nov 1, 1908

By Edwin Ludlow

To THE members of the American Institute of Mining and? Metallurgical Engineers who were fortunate enough to be able to attend the Fiftieth Anniversary at Wilkes-Barre, it was brought home that commercial anthracite requires not only expensive mining but that the milling or preparation of it is also a costly operation, requiring very large capital expenditures and high maintenance and labor costs. The great trouble that coal men meet in discussions of coal problems today is the difficulty the average coal user, especially in the East, finds in distinguishing between anthracite and bituminous coals. They are two entirely separate problems and yet the people who are burning coal complain bitterly of the high cost of anthracite and quote the figures furnished in regard to the prices of bituminous coal and feel that the anthracite operators are making an excessive profit, without realizing the enormous difference in the cost of production in the two fields. The great difference that can be marked is that in this year of industrial depression the prices of anthracite have been not only maintained but have increased during the summer, while the price of bituminous coal has been continually dropping since the first of the year, and yet the same law of supply and demand governs both anthracite and bituminous. In order to understand the situation the two problems must be considered from their separate points of view.

Jan 1, 1921

By J. P. BONARDI, William F. Boericke

BOULDER COUNTY, Colorado, ranked during the war years and until the end of 1918 as one of the foremost tungsten-producing districts of the world. In 1919 production fell off drastically, due to heavy importations of foreign ores from China, Burma and South America. So large were the imports that even after the enactment of a protective tariff in 1922 of 45c. per lb. on tungsten metal, equivalent to $7.14 per unit (201b.) of tungstic acid? (WO,), the stocks of metal in this country were extensive enough to supply the demands of industry, and prevent general resumption of mining by domestic producers. Even today there are only two producers in the Boulder district though at one time as many as twenty separate companies were in operation. About the same ratio holds for other tungsten-producing districts in the country, including California and Nevada. Total consumption of tungsten concentrate in terms of 60 per cent WO2 in the United States amounted to approximately 3790 tons in 1928, according to Frank L. Hess.' Of this amount, domestic mines contributed 1290 tons, and the rest, 2500 tons, was imported. Yet in 1917, with tungsten concentrate selling at $20 per unit, the Boulder district alone produced 2707 tons, indicating the effect of enhanced ore price upon production. It is believed by American tungsten miners that, given a sufficiently high tariff, all the demands of industry can be met by domestic production without placing a prohibitive burden on consumers. For instance, in steel manufacturing the percentage of tungsten entering into the manufacture is so small that, ?regardless of cost, it can constitute but a small fraction of the cost of steel to the buyer.

Jan 1, 1929

By Carle R. Hayward

LEAD ore smelting plants have been operating in general at reduced capacities and secondary lead has assumed relatively more importance during the last year. Present smelting practice results in a large amount of dross, often over 25 per -cent, from blast-furnace lead. This is usually treated at a fairly high temperature in a reverberatory furnace to remove part of the lead and produce a matte-speiss product which is shipped to a copper plant. Few smelters are satisfied with this 'treatment. The fume losses are high and the matte-speiss contains considerable lead. It would seem that a fruitful field for research was open here.

Jan 1, 1934

By E. H. Bunce

CONTINUED progress in zinc metallurgy has been shown during 1933 by the adoption of new methods as well as the modernization of old processes and equipment, and by the initiation of new fields of activity for future advancement. The use of suspension roasting continued to grow as its advantages and adaptability became increasingly, apparent. The process developed by the National Smelting Co., Ltd., several years ago, of completely roasting on large sintering machines with utilization of the gas for acid manufacture has worked so successfully that an additional machine was installed during the year. At both the Swansea and the Avonmouth Works all of the ore for smelting is now roasted on the large sintering machines, thereby completely eliminating the old hearth-roasting furnaces. Work continued on obtaining partial purification of zinc ores from lead and cadmium by close control of conditions on the sintering machine, and in a few instances by chlorine additions to the ore before sintering. Ores so treated were either partially roasted or com-

Jan 1, 1934

By Clinton H. Crane

DR. TILNEY, the great expert on the study of the development of the brain of human beings and animals, tells us that the greatest difference between the human brain and the brain of animals is that man alone has shown evidence of being able to predict the future. Just why he throws overboard the busy bee who lays up honey for the winter, the squirrel who gathers nuts, and the humble ant, I do not know. At any rate, it is nice to be assured by an authority that we have this power of prophecy. My own experience with attempting to prophesy the future has convinced me that our only possibility of being good prophets is to be good students of history.

Jan 1, 1940

By E. H. Crabtree

IN an ideal mill, with perfect milling operations, the mineral extraction would be 100 per cent, the, concentrate would be 100 per cent mineral, the tailing would assay zer.0 mineral and the milling cost would be zero dollars. Such an operation can, of course, never be attained. We can only strive to approach it as nearly as possible and in doing so most recognize .the fact that the three primary factors in milling: assay of concentrate, assay of tailing, and cost of operation bear a definite economic relationship to each other. This relation will change from time to time and will be different for different mills, depending on milling equipment, character and quality of feed, market conditions, and other factors. It is granted that for a given operation there is an economic point, but the location of this point is difficult. It is for the purpose of making some of these economic points a little more tangible that this paper has been prepared.

Jan 1, 1930

By AIME AIME

HOWARD H. PRESTON, professor of economics and business at the University of Washington, presented a paper before the North Pacific Section, A.I.M.E., on Jan. 23, on the "Economic Aspects of Gold and Silver." He carefully reviewed recent governmental actions that have affected those metals and gave an interpretation of their effects. A brief excerpt from his address; follows: Including the proclamation of March 6, 1933, the principal steps of the present Administration which have carried the United States off the gold standard and led up to the present program have been: (1) The Presidential proclamation of March 6 controlling gold. (2) The monetary sections of the Emergency Banking Act of March 9. (3) Mobilization of gold under Executive orders issued March 10 and April 5. (4) The gold embargo by Executive order, April 20. (5) The controlled inflation bill, May 12. (6) The joint resolution abrogating the gold clauses, June 5. (7) The Executive orders on newly mined gold, Aug. 28. (8) The President's radio address of Oct. 22 and the R.F.C. gold-buying program. (9) New anti-hoarding order calling in small holdings of gold, Dec. 28, 1933 and Jan. 15, 1934. (10) Nationalization and revaluation of gold' (Message to Congress, Jan. 15).

Jan 1, 1934