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By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By C. P. Crawford

In the current issue of Link-Belt News is this quotation: "Advancing waves of other people's progress sweep over the unchanging man and wash him out." As we look over the industrial world today we are struck by the many waves which are sweeping over backward industries. Mergers are being consummated in all lines of endeavor. General Motors are making radios and the Bendix Brake Company are making airplanes. Railroads which twenty years ago were called to account by the Federal Government for their efforts to form combinations are today being ordered to combine. But what is of immediate concern to the coal industry is the fact that there is now in existence or in project a total of 3,641 miles of pipe lines to carry natural gas to most of the country's industrial centers. This is the wave of progress which is sweeping toward you and me. If we are to grasp the significance of these many changes, we must widen our vision so that we may learn some- thing from 'the other fellow's experience. The first lesson is that cost of production alone is not a measure of profit. It is an interesting fact that the production of an article represents a definite loss until that article has been sold for a price in excess of its total cost, and the money is in the hands of the producer. If this is true, then the selling price is more important than the production cost.

Jan 1, 1930

By Paul J. Henkels

Synthetic gypsum is the calcium sulfate co-product of a number of industrial processes. Synthetic gypsum utilization as an alternative to the naturally occurring mineral continues to grow in the gypsum industry. In particular, flue gas desulfurization (FGD) gypsum produced by the electrical utility industry has had a significant impact and a far-reaching effect on the gypsum wallboard manufacturing industry. This paper will discuss the various synthetic gypsum sources verses natural gypsum and highlight issues of use in gypsum wallboard and related products.

Jan 1, 1999

By A. L. Jones

The subject assigned to me of "The Power" Problem of the Mine" is so broad that I have decided to confine myself to the question of the power supply itself, rather than the application of electricity throughout the property. We will look over certain economic aspects of the problem, particularly in the way it affects the mine manager or executive and his attitude toward the power plant. The accepted method of power application to the mine is by electric power, and the experience of each of you is that the job is never complete as you are always undertaking some further electrification which necessitates the stiffing up the power house to care for the additional load. The mine executive, then, is wrestling almost continuously with the problem of his power plant. Either it is overloaded and must be enlarged and rebuilt; or its operating costs are excessive; or it breaks down and limits coal output; or some one wants to sell new and improved machinery, until the manager almost hates the thought of such a restless part of his property. If he purchases power, every day new uses for it seems to be found. In many ways this unrest is due to short-sighted policy toward the problem, and the tendency when the problem of extension has to be met, to dispose of it in the cheapest way and without thought as to where the future is leading. The day when each opening had its own boiler plant, steam hoist, steam driven fans, steam pumps, steam loaders, etc., seems to be far behind us. The recognized method of power distribution today is by electric power, except for rather limited applications of compressed air; most of which is electrically compressed. During fifteen years contact with mines of Colorado and Wyoming the writer has seen nearly every mine power house double or triple in capacity or abandoned in favor of purchased power, worn. out and inefficient machinery thrown out, isolated boiler plants dropped, seam pumping at great depth changed to electric drive, all resulting in greatly reduced labor and fuel costs. Power costs, which in such isolated plants were considered normal, would be unthinkable today. One property where the main power supply was by compressed air from steam driven com¬pressors used under boilers 8.35 per cent of all the coal mined. The cost of power was 12 1/2 cents per ton of coal mined. Another property of four openings, each with its own boiler plant and usual equipment of hoists, pumps, etc., had a power cost of 10.3 cents for each ton mined; and these were days when you did not get very high prices for coal. Another property operating two mines mostly by steam used 11.1 per cent of the coal output under their own boilers and the power cost was 19.45 cents for each ton mined. Each of these properties is now electrified and power costs are from 3 to 4 cents per ton, and the fuel burned runs from 1 to 2 per cent of the output. With the broadening market and high prices for slack coal and the high prices for labor in boiler and engine rooms, the cost of steam is reaching a high figure, and efforts must be made to keep this down, by more efficient steam production and by utilizing this steam in better machinery which will increase the work done by each pound of steam. It must not be overlooked either, that the plant which is very wasteful of fuel is usually a pretty old one and one far from reliable. In a general way the more efficient the plant, the greater its reliability. Ample and reliable power supply means ability to get out coal when there is a market. The increasing use of purchased power is largely due to changing conditions which are tending constantly to push up the cost of power, unless the most efficient machinery is used and large scale production possible. The

Jan 1, 1923

By J. Hartikainen

19 papers were allocated to this session by the paper classification committee, 8 related to bored piles, 5 to continuous flight auger piles (CFA piles), 3 to slurry trenches, 2 to both bored piles and slurry trenches, one of them also dealing with root piles. There were no papers dealing with root piles only, as root filling is a different technique. One paper concerns sheet piling (Table 1). Table 1. Papers for session 1: Recent Technological Developments in Deep Foundations with Soil Excavation. [ ] Table 2. Classification of pile type in Belgium - van Impe W.F. /10/. [ ] Trends in piling Trends in piling in Central Europe were studied by van Impe for his brilliant lecture to the Finnish Civil Engineering Society. He claimed that bored piling is on the decrease and CFA pilling on the increase (Table 2). Thus the numbers of papers presented here do not conform to recent developments or trends. The papers submitted arc of course influenced largely by the fact, observable in Table 3, that bored piling is

Jan 1, 1994

By W. E. MacDonald

This paper relates the story of 100 years of mining in the Harbour Seam at the Princess Colliery, Sydney Mines, Nova Scotia. Several interesting anecdotes are included along with the discussion of the evolution of coal mining methods in the area. Finally, some of the recently introduced equipment at Princess Colliery is described, and prospects for the future of the industry are outlined.

Jan 1, 1968

By AIME AIME

CERTAINLY in point of attendance, and doubtless in several other ways as well, the 147th meeting of the A.I.M.E. was the best ever held. In times of depression, mining engineers and metallurgists have plenty of time to come to the Annual Meeting but money is scarce; at the height of industrial activity they have plenty of money but no time. "The current period of transition seemed to provide ideal conditions for' both the preparation of papers and attendance at their presentation. The weather made even the Californians present envious though the weather man gets no credit, for rain and snow was what he willed. Among the elevator men, the miners have the reputation of being the toughest crowd to handle, though the best natured, withal, of all the engineering groups that meet in the Engineering Societies Building. This year Your inquiring reporter was told, "it was the damnedest meeting I ever saw; they

Jan 1, 1937

By R. D. Brown

In his March 31, 1977 budget, Finance Minister Macdonald has attempted the delicate balancing act of stimulating the economy without reinforcing the inflationary pressures which Canada is continuing to experience. Several tax changes of benefit to the mining industry, as well as measures designed to encourage oil exploration in frontier areas, are among the budget proposals. Additional earned depletion of 66- 2 /3 %, which may be offset against income from any source, will be available on drilling costs in excess of $5 million incurred between March 31, 1977 and April 1, 1980 in connection with an exploratory well in Canada, including the continental shelf . Other changes include more favourable treatment of resource property dispositions, less restrictive rules r elating to "successor corporations" , increased capital-cost allowance on railway spur lines, the inclusion of certain production royalties in Canadian development expenses and the application of the lower "manufacturing and processing" tax rate to sulphur production. To encourage business capital spending, the 5% federal investment tax credit it to be extended an additional three years to mid 1980 and broadened to include spending on scientific research and development. The rate of credit will also be selectively increased on a regional basis, to 7.5 % in certain designated areas in Saskatchewan, Manitoba. Northern. Ontario and Quebec, and to 10% in the Atlantic provinces and the Gaspe.

Jan 1, 1977

For the sixth year in a row, the value of nonfuel mineral raw materials produced in the United States set a new record, reaching almost $17 billion in 1977. Data provided by the Bureau of Mines show that the 1977 value of domestic nonfuel mineral production exceeded the 1976 value, $16.7 billion, by 2 percent. The $17 billion worth of minerals was the basis for approximately $770 bill ion worth of processed materials of mineral origin. Output of metals decreased $360 mil lion in 1977, while that of nonmetals increased $670 million. Of the 22 metals produced, output of 12 increased, and the value of 13 increased. Among the 46 nonmetallic minerals produced, the quantity of 27 increased, and the value of 34 increased.

Jan 1, 1978

The value of raw nonfuel mineral materials production totaled an estimated $19.7 billion in 1978. The record 1978 value exceeded by 13 percent the 1977 value of $17.5 billion. This raw mineral output was the basis for approximately $200 billion worth of processed materials of mineral origin. Output of both metals and nonmetals increased about $1 billion each, above comparable figures for 1977. Of the 22 metals produced quantitative output of 11 increased and the value of 13 increased. Among the 48 nonmetallic commodities produced, the quantities for 35 increased, and the values for 40 increased.

Jan 1, 1979

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company's ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining's future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year's end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year's end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world's gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999

By R. Adams

Zirconium is the 20th most abundant element in the Earth?s crust and it most often occurs in the form of silicate (as zircon), less often in the oxide form (as baddeleyite or caldesite). Historically, the world?s production of zircon was entirely derived from mining and processing beach sands or heavy mineral sands that were being exploited primarily for their titanium content, i.e., to generate TiO2 feedstocks that would be used for making titanium pigments and, to a lesser extent, titanium metal. Zircon was then regarded as a byproduct, with the sharply fluctuating prices typical of a commodity where the supply is essentially involuntary and not truly responsive to market demand. However, in recent years, zircon has shown considerable mining investment appeal in its own right. Projects have been planned ? and some have already come to fruition ? based mainly on the zircon potential of the deposit. Booming Chinese demand for zircon to meet the requirements of the ceramic and zirconium chemical sectors has been a major factor causing zircon prices (f.o.b. Australia) to surge from US$674/t ($611/st) at [ ] the end of 2005 to beyond US$2,400/t ($2,177/st) by the end of 2011.

Jan 1, 2012

By Daniel T. Eyde

The U.S. Geological Survey (USGS) estimates world production of natural zeolites to be 2.7 Mt (3 million st) in 2013. China ranked ?rst with 2 Mt (2.2 million st), followed by the Republic of Korea at 230 kt (253,000 st) and Turkey at 50 kt (55,000 st). Japan?s production is reported to have increased as a result of zeolites, reportedly low grade local mordenites, being used to treat the low-level radioactive contaminants in the areas surrounding the damaged reactors at the Fukushima Daiichi power plant. China and other countries? high-volume, low-value construction applications, which include dimension stone, pozzolans and lightweight aggregate, are also included in production. This means the production data does not accurately indicate the quantities used in high-value added specialty applications. Consumption in the United States, according to USGS estimates, increased slightly, to an estimated 71.3 kt (78,400 st). Domestic uses for natural zeolites were, in decreasing order by tonnage, animal feed, pet litter, cement (primarily down-hole cement applications by the drilling industry), water purification, odor control, waste water cleanup, fungicide or pesticide carrier, gas absorbent, fertilizer carrier, oil absorbent, desiccant, catalyst and aquaculture. The six leading uses accounted for more than 70 percent of the domestic natural zeolite sales tonnage.

"The mining industry suffers from a number of incorrect perceptions, one of which is that it is an outdated industry that has not changed for hundreds of years. But the truth of the matter is that mining is a vibrant, highly complex industry that not only employs highly skilled and educated professionals but is also often on the cutting edge of technology. It is an industry with projects that are ever-evolving and among the most challenging engineering feats in the world.Take for instance the U.S. 53 Highway Relocation project in Virginia, MN. While more of a civil engineering job than a traditional mining project, it is still a complex engineering challenge taking place in a mining environment that has called on the skills of eight state agencies, three federal agencies, a host of contractors and many consultants, including many from the local mining industry in the Iron Range of Minnesota.In 1960, the Minnesota Department of Transportation (MnDOT) constructed U.S, Highway 53 on a private easement owned by US Steel that cut across a massive taconite deposit. MnDOT constructed the highway with the agreement that if the highway needed to be moved to access the taconite deposit before 1987, US Steel would foot the bill. And if the move was required after 1987, the responsibility would fall to MnDOT. In 2010, MnDOT received the notice that the highway would have to move as property owner United Taconite planned to access the ore, setting in motion one of the greatest engineering challenges, and the highest risk project, in the history of the states’ transportation department.Pat Huston, U.S. Highway 53 Relocation project manager, opened the 90th SME Minnesota Section Conference in Duluth, MN on April 19 with a presentation about the project that includes 5 km (3.2 miles) of fourlane highway and a new 345-m (1,132-ft) bridge that will be the tallest in Minnesota when it is completed later this year.“This project was not business as usual,” Huston told the packed crowd. “Highway 53 connects Canada and the Iron Range to Duluth and Lake Superior. It is an important highway.”During his presentation he spoke about many topics that were familiar to the more than 1,100 mining professionals who attended the conference. In his keynote speech,"

Jan 6, 2017

By Douglas B. Silver

"Editor’s note: Douglas B. Silver, Portfolio Manager, Orion Resource Partners, was the keynote speaker at the 2017 SME Annual Conference & Expo in Denver, CO on Feb. 19, 2017. He also gave the keynote address to the SME Annual Conference in 2008. The following is his 2017 keynote address with a few of the slides that were presented. The full speech is available on YouTube https://www.youtube. com/watch?v=uF0qwGJIX3UIn 2008, I had the privilege of giving SME’s keynote address. At that time the financial markets were on the verge of collapse and my presentation described the issues. Unfortunately I was correct, and global markets went into a steep nosedive, creating the largest economic downturn since the Great Depression.In hindsight, there were plenty of signs that this was coming. The Supercycle had created massive new wealth. This wealth was largely invested in the United States due to the country’s political stability and credit worthiness. In 2004, the large investment banks convinced the U.S. Securities Exchange Commission (SEC) to allow them to triple their borrowing leverage ratios. This made the banks more vulnerable to market volatility. The banks then lent money to NINJAS - people with no income, no job and no assets. Even worse was the fact that these unqualified home owners used adjusted-rate mortgages (ARMs) which they, of course, intended to refinance prior to interest rates rising. These mortgages were then bundled up by the banks and sold to investors as “safe” investment products. The money flowed into these products because the rating agencies gave these instruments high marks. These same agencies earned their fees from the very same banks seeking high ratings. (No conflict there). Private debt exploded and peaked out in 2008.These mortgage products were sold in an unregulated shadow banking system and the ARMs came due. Toxic mortgage default rates skyrocketed and the mortgage-backed securities collapsed in value. This house of cards had a negative feedback loop that accelerated the market crash and resulted in more than $1.5 trillion being lost in the securitization sector, a 47 percent decline in the Dow Jones Industrial Average, foreclosure rates skyrocketing and housing prices collapsing. The financial markets were in a nosedive."

Jan 8, 2017

Jan 1, 1998

By Charles F. Herbert

The waves of prospectors who struggled across the wide Alaskan wilderness between 1898 and 19 10 came close to but did not actually find the rich copper/zinc/silver deposits strung out along 161 km ( 100 miles) of felsic schist in the remote Brooks Range of northwestern Alaska. They had heard rumors of gold in the valley of the Kobuk River, so they skirted the Arctic ice pack in the Chukchi Sea and, in a force at least 800 men strong, ascended the Kobuk River in 1898. Twenty-eight placer mining camps were established but only a handful survived for more than a few years. One of the placers that died rapidly was Ruby Creek. A map showing the location of Alaskan mineral deposits is given in Fig. 1. The Ruby Creek miners, disappointed with the scarcity of gold in that creek, followed copper-bearing float to two places where the float was especially plentiful. Pits, a short adit, and a shallow shaft uncovered copper carbonates, bornite, and chalcopyrite in fractured limestone but the remoteness of the district blocked efforts to sell the claims or to raise capital for development. Shortly after 1906, the copper prospects were abandoned and, except for an account published in 1913 by the US Geological Survey, they were forgotten, as were the names of the prospectors.

Jan 1, 1991

By Paul E. Melancon, Vincent C. Kelley, Dale F. Kittel

Uranium of the Grants region occurs predominantly in continental sandstones of the upper part of the Jurassic Morrison Formation, but significant lesser deposits are found in limestone of the Jurassic Todilto Formation and in black shale of the Cretaceous Dakota Formation. The deposits are disseminations that form runs ranging from a few hundred tons to several million tons. The ore consists mainly of uraninite, uraniferous carbonaceous material, coffinite, and such secondary oxidized minerals at tyuyamunite, carnotite, and uranophane. In sandstone, the ore runs were locallized by mudstone, interstitial carbonaceous material, and primary sand channel trends. In limestone, ore deposition was related to folds and fracture zones. The great bulk of production has come from the Ambrosia Lake mines in the Grants district and the Jackpile and Paguate mines in the Laguna district. The ores, which generally have been 0.20 to 0.30 per cent U3O8, are treated at mills operated by Kerr-McGee Corporation, Homestake-Sapin Partners, and The Anaconda Company, all in the Grants district. In 14·years after discovery in 1950, the deposits had yielded concentrates valued in excess of $800,000,000. Since deposition of the Jurassic host rocks, a geologic history involving tilting, faulting, erosion, changing ground-water environments, and oxidation has considerably influenced the existence and character of the deposits. It is evident that their ongm is not simple. However, a degree of agreement appears probable for a pre-Dakota age for the original ore runs, and, at Ambrosia Lake, two principal stages of ore formation, separated by Laramide faulting, are recognized. All earlier ores have been modified by Quaternary oxidation, solution, and enrichment during which time much secondary tyuyamunite, metatyuyamunite, carnotite were formed.

Jan 1, 1968

By C. B. Manula

A method for the feasibility assessment of open-pit operations using conventional shovel/ truck systems to mine steeply pitched coal seams has been applied at The Pennsylvania State University. Three computer models were developed for the analysis: a geology and reserves model (GEOL), an open-pit materials handling simulator (OPMHS), and a cash flow model (CASH) (Manula, Albert, and Burgos, 1976). GEOL provides the basic mining data; OPMHS simulates shovel/truck performance related to pit profiles and average mining locations to provide productivity rates needed to size the system; and CASH provides either a selling price or rate of return (ROR) for the product. The general flow of information generated by these models is shown in Fig. 1. Since the ratio of overburden-extracted to coal-produced places a definite economic limit upon a mining venture, geological data must be analyzed with the least possible manual effort to minimize computational errors. This is especially true if the property contains several seams that are steeply pitched. In this situation, a computerized analysis is by far the most efficient and effective method to determine coal reserves and waste tonnage. This chapter describes the reserve model developed at Penn State and provides an example to demonstrate its application.

Jan 1, 1979

By Donald F. Hammer, Donald W. Peterson

The Magma mine at Superior, Arizona, has produced over 13 million tons of ore yielding 1.5 billion pounds of copper. It is a mesathermal deposit, and, although the bulk of the ore has come from the Magma vein, most of the recent production has come from replacement deposits in limestone. The mine lies in a Precambrian and Paleozoic sequence of rocks that includes schist, diabase, quartzite, shale, and limestone; nearby, these rocks are intruded by igneous bodies of Mesozoic age that were probably the source of the ore-bearing fluids. Locally, these rocks are overlain by Cenozoic volcanic rocks and conglomerate. Layered rocks at the mine dip eastward about 30°. The area is extensively faulted, and surface faults are grouped into an earlier east-trending set and a later northtrending set. An additional set of diagonal faults that trends northwest and northeast is recognized underground. The east-trending Magma vein-fault, with its splits and branches, is the principal mineralized structure of the district. The bulk of the ore occurs in large ore shoots that plunge steeply westward and are sporadically connected by irregular ore shoots dipping gently eastward. The main ore controls apparently are selective zones of permeability related to the transverse faults. A bed of crystalline limestone near the base of the Martin Limestone (Devonian) is the host for the replacement ore bodies-discontinuous tabular pods dipping eastward parallel to the bedding. Selective permeability is again the apparent ore control, caused both by local hydrothermal solution of limestone and by deformation along faults. The principal copper minerals in the vein are chalcopyrite, bornite, enargite, tennantite, chalcocite, and digenite; these minerals vary in abundance according to a distinct zoning pattern. The upper part of the mine yielded considerable zinc as sphalerite, and the oxidized zone was rich in silver. The chief gangue minerals are pyrite, quartz, and hematite. In the limestone replacement bodies, chalcopyrite and bornite are the chief ore minerals.

Jan 1, 1968