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By Granville S. Borden

THE program for income tax legislation presented here proposes some diminution in the current tax burden on mineral producers but it will, if enacted, eventually increase the potential and current Government revenue from the mineral industry.

Jan 6, 1951

By Walter F. Gries

AN ounce of prevention is worth A a pound of cure' is an old proverb that has sometimes been forgotten in programs having to do with the health of workmen. Realization of the truth of this maxim is increasing, however, and today the iron-mining industry, with which I am particularly concerned, is becoming more alive to the prevention of illness and the conservation of health, thus decreasing the need for treatment after diagnosis has established its necessity. The healthy workman is the happy, efficient workman, and new programs tending to make him more health-minded are being put into operation. Preventive medicine is less costly than corrective medicine, to say nothing of the better results obtained. Periodic physical examinations, with close follow-up attention when required, have reduced the time lost because of illness, workmen's compensation costs, and group-insurance benefits for nonindustrial disabilities.

Jan 1, 1939

By William J. Coulter

WITHIN the past thirty years the United States has been involved in two tragic, vicious, and costly world wars. To make the world safe for democracy was the reason given for our participation, but the confusion and misunderstanding that prevails all over the world today suggests that war is not the proper approach to the attainment of that utopia. These conflicts were conceived and prosecuted by nations far advanced in civilization and culture. Their best manhood was sacrificed, a staggering tax burden was saddled on their peoples, huge financial losses were incurred, destruction of property was appalling, and cultural and peaceful scientific advancement received a setback that may require centuries to retrieve. Therefore, some basis is established for the conclusion that progress in the past fifty years has been most outstanding in the development of instruments used for death and destruction, and that progress in this direction between the two World Wars would indicate that the next war will go far toward total destruction of world civilization.

Jan 1, 1946

By AIME AIME

AN IMPORTANT innovation in Alabama in the semi-longwall type of coal mining as applied to low-dipping thin seams has been introduced by the Galloway Coal Co., mining the Mary Lee high-ash seam which averages only 26 in. thick. The property is their Mill Creek mine, near Carbon Hill, Ala., in the Warrior coal field. The results, although not final, indicate that roof conditions can be successfully handled by this method without loss of walls, with a rate of recovery much above that possible with the room-and-pillar method, and at the low production cost necessary for this grade of coal. Double cross-headings are turned off a main haulageway on 60-ft. centers and driven 40 ft. wide with thin chain pillars between. These double entries are turned at 525-ft. intervals, leaving a solid block of coal 440 ft. across; that is, from the outside of one pair of headings to the inside of the next pair is 440 ft. The bottom, which consists of hard fireclay, is taken in these entries 8 ft. wide and 4 ft. deep for head room.

Jan 1, 1934

By F. Bahnemann

IN discussing the problem of abnormal magnetic polarization, C. A. Heiland1? emphasized the unfortunate fact that our knowledge of the geological and physical conditions relating to such occurrences is very limited and that a more detailed insight into their physical causes would be extremely valuable for interpreting measured anomalies. He also pointed out that to arrive at quantitative physical formulas that would express the conditions that cause abnormal polarization many more occurrences of the kind would have to be recorded. The first part of this paper is a contribution to such descriptions.

Jan 1, 1935

By N. J. Themelis, R. V. Flint

In a four-year period between 1973-76, the Metal Mining Division of Kennecott Copper Corp. conducted a company-wide program of operations improvement which involved line and staff personnel from all company functions. Specialist teams performed detailed studies of all operational aspects at Kennecott's four copper mines and concentrators, four smelters, and two electrore-fineries. The specific recommendations that resulted may transform the Metal Mining Division into the country's lowest cost producer of copper by the mid-1980s. In this article, N. J. Themelis and R. V. Flint describe the mechanics of MMD's integrated approach to operations improvement.

Jan 6, 1979

By Jennifer Drake, Edward T. Moriuchi, Jennifer A. Hill

SEAMSYS and CSD/SMP are sets of computer programs that assist geologists and mine engineers in modeling and evaluating coal properties. The systems are tailored for treatment of waste and coal quality data, including metallurgical coal product capabilities. The gridded SEAMSYS model honors all drillhole data and incorporates user- defined mining parameters, losses and dilutions, and operational constraints. A variety of reserve reports and graphic displays are available from the model. Preliminary mine planning is accomplished through automatic cut generation and production targeting. CSD/SMP refines the preliminary plans to help anticipate the consequences of various mine schedules and evaluate equipment capacity requirements.

Jan 1, 1983

By Russell A. Carter

Although significant phosphate mining activity has occurred in four western states-Idaho, Montana, Utah, and Wyoming-southeastern Idaho contains the largest, most easily mineable reserves, and mining has focused there. More than half of the western phosphate field's economic reserves are within a 32 x 96-km (20 x 60-mile) rectangle bounded by Montpelier, Idaho, on the south, Soda Springs on the west, and Grays Lake on the east. A large amount of this land lies within the boundaries of the Caribou National Forest.

Jan 1, 1978

By Albert Brokaw

THE so-called ?paraffin dirt" of the Gulf Coast oil fields has been con¬sidered an indication of the possible presence of oil and gas, and not a few wells have been brought in solely on the basis of such evidence. In a sense, it may be empirically justified as evidence of the presence of oil or gas, though it cannot be said to be infallible. If the writer is correctly informed, its association with oil and gas was pointed out by Lee Hager some years ago, and while it is commonly mentioned by geologists and operators in conversation, no discussion seems to have found its way into print. The present interpretation is based on laboratory study rather than on field investigation, and is put forth with the hope of stimulating discussion which shall lead to more complete understanding. The term "paraffin dirt" has been applied to soils with a peculiar texture, which has been described' as "curdy" or "rubbery." When moist, the material breaks much after the fashion of "green" cheese. It is rubbery under compression, but does not resemble rubber in tenacity or cohesion. When dry, the material ranges from hard clods to a horny mass of high tensile strength. The shrinkage in drying is very great, especially in the hornlike matter. The moist material ranges in color from dark brown in the specimens rich in organic matter to grayish in specimens containing more inorganic matter. All of the specimens studied were readily attacked by molds, which in some cases grew in great profusion on the samples. Samples exhibited a rather characteristic "swampy" or "mucky" odor when wet, and a characteristic odor of humic soils when moist.

Jan 4, 1918

EUGENE WESLEY SHAW, ? Washington, D. C.- (Written discussion?).-Paraffin earth is of especial interest because of the apparent difficulty of determining its chemical nature. I have submitted specimens to three chemists at different times with suggestions as to special tests that might he made. The results are indicated in the following reports:

Jan 1, 1919

W. G. MATTESON,* Fort Worth, Tex. (written discussion?).-Dr. Brokaw has evidently given a great deal of time and study to this phenomenon and his conclusions seem sound and logical. .Mr. Lee Hager was probably the first geologist of repute to attach any great importance to the occurrence of paraffin dirt in connection with the Gulf Coast oil-producing salt domes. The writer has been reliably informed that through his discussion, the idea was promulgated that the presence of this so-called paraffin dirt was one of the most important and reliable indications of the presence of an oil-producing salt dome. Despite very strong evidence to the contrary, Hager evidently still has considerable confidence in this theory, as brought forth in his discussion1 of Dr. Brokaw's paper. Halter here gives all the paraffin dirt occurrences known to him, and adds, "Fifteen of these localities, including practically all of the greatest fields, have produced oil in some quantity." . The acceptance of the list of occurrences as submitted by Hager depends upon what material we are justified in including under the term "paraffin dirt." If we agree to a broad classification, whereby paraffin dirt is. to include all spongy, earthy, decomposed, vegetable material, or spongy soil impregnated with the same, then Haggler's list will have to be not only accepted but perhaps enlarged. On the other hand, if we confine ourselves to a strict interpretation of the substance known as paraffin dirt, based .upon typical occurrences, general understanding, and application, several of Hager's occurrences will be seriously questioned by many geologists. The typical material is excellently described by Hager as a dirt or soil-like substance "resilient to the step, like rubber, which falls apart in small squares when dug. Intimately mixed with the soil itself and between the cracks and joint planes is a yellow, jelly-like

Jan 11, 1918

W. E. WRATHER, Wichita Falls, Tex. (written discussion*).-The appearance of Mr. Brokaw?s with-the chemical composition of "paraffin dirt" will be welcomed by oil geologists who have worked in the Gulf Coast district. It is to be hoped that it will lead to a discussion of the subject which will throw some light on the relation this peculiar substance bears to the occurrence of oil deposits. The problem of locating oil pools in advance of drilling is at the best a very intangible matter in the district along the Gulf Coast, and it is therefore desirable to make the most of any clew which may be of the least assistance to this end. Geologists have been familiar with "paraffin dirt" for a number of years, and have informally discussed its value as a surface indication of oil. But doubtless owing largely to the fact that they have been unable to define its exact composition, very little information has appeared in print on the subject. The presence of this baffling and somewhat indeterminate substance is now quite generally accepted as one of the most reliable indications of a gas seepage. The question is whether paraffin dirt necessarily indicates that the escaping gas is an emanation from an oil deposit, or whether it merely indicates that marsh gas (urethane) has here escaped from its source in "the abundant decomposing vegetation entombed in the sediments of the old Mississippi Embayment, and the Gulf Coastal Plain. The presence of this material has been relied upon to a great extent, both by oil producers and geologists, in the location of wildcat wells, since the discovery that it was associated with gas seepages. It is quite true that other surface indications were often present at such localities, but if, in addition, paraffin dirt could be found in the vicinity, this fact was accepted as the final justification for drilling a test well, despite the fact that no one seemed to understand its chemical composition or to know why it should be associated with oil. In fact, for a long time it has generally been accepted that the name is a misnomer, that very little, if any, paraffin is present in it, or, for that matter, any other known fraction of crude oil.

Jan 7, 1918

Discussion of the paper of ALBERT D. BROKAW, to be presented at the Colorado meeting, September, 1915, and printed in Bulletin No. 1:16, April, 1918, pp. 947 to 950. LEE HAGER,* Houston, Tex. (written (discussion t).-In no other oil region of the world, perhaps, have the geological principles, of such high value in many fields, found so little practical application as in the

Jan 8, 1918

What do you think are the major problems that the mining industry is facing? While I don't have any intensive knowledge of the various problems that plague our industry, I know that they are all part and parcel of a more complex and fundamental question: What must we do to make mineral extraction successful, safe, and profitable? Obviously, as mining people, we must continue to expand our technical know-how and to make better use of it. In today's context, however, that is not enough. We must also improve the "public image" of the mining industry. Why? Because the key word in the term "public image" is: the public. Many people in our country and in Congress, for instance, are against strip mining-and some are even against underground mining. Pressures from the public, from voters, have affected past, present, and new legislation. And government controls can be a major problem in any industry, let alone mining. At first, people ask government to intervene, act, or resolve problems, even in management and labor contract negotiations. But later, after Washington gets involved, there are clashes between departments and personalities, and eventually there is resentment against the interference with mining operations or our daily lives.

Jan 3, 1975

Dr. Rausch, from your vantage point as educator, engineer, and corporate executive, what would you say is the most fundamental need that must be satisfied for the continuing welfare of our society, our industry and our profession?

Jan 3, 1977

Briefly, can you relate how you got into the minerals industry and some of your experiences as an executive, engineer, and administrator? Also would you tell ME about your affiliation with the Society of Mining Engineers of AIME? Roseburg, Ore., was where I was born and raised. It was, and still is a lumbering town; it couldn't have been any farther from mining. Upon graduation from high school, I turned 18 and, having already signed up with the Army Corps of Engineers, I was in the service eight days after my birthday. Four months later I was in New Guinea. As an amphibious engineer, I saw many of the Pacific and Philippine Islands, and ended up in Japan just a few days after the war was over. In later years, my work took me back to several of the places I had been during the war.

Jan 3, 1978

Would you briefly describe how you chose the minerals industry and reflect upon some of your earliest experiences? I wish that I could say that I had a well-formulated career plan early in life and that mining engineering was always foremost in it, but I cannot, In fact, I was quite indecisive before I finally chose my life's vocation. But in another respect, I am glad my career unfolded in the manner it did because it gave me a better insight into advising others on career opportunities. Probably the greatest problem confronting our youth, and the one I find preys upon their minds the most, is their inability to select a career path early in life. This indecision frequently has a deep psychological effect upon them and they become down on themselves. Therefore, it fortifies them somewhat to learn that others who have become successful in their careers had difficulties choosing a career path early in life. However, while assuring young people that an early choice is not absolutely essential for success, I caution them to work toward as early a decision as possible.

Jan 3, 1979

John Malcolm Fraser became Prime Minister in December 1975 when Australian voters gave him the biggest landslide victory in the history of the Federation. From the previous administration, Mr. Fraser has inherited an atrocious economic mess: a staggering budget deficit, an unrealistically overvalued currency, a 14% annual rate of inflation, mounting unemployment, and a demoralized business community. He has already tackled some of these problems with some measure of success; but he has been in power for barely a year, and it's too soon to see a turn-around.

Jan 1, 1977

LOUIS Buchman walks down the hall of Kennecott's Chrysler Building offices as if he belonged there, but it wasn't his setting of choice. The West has become his home, that and the scene of operations is there. When he was a child his family came to the United States from Latvia and settled in Michigan's Upper Peninsula where he went to school and on to Michigan College of Mines. Graduating with B.S. and E.M. degrees, he headed west in 1907 to the mining camp of Ophir, in the state where he spent the bulk of his career - Utah.

Jan 5, 1953

By William L. Langdon

PRELIMINARY COMMENTS Recent years have been difficult for the mining industry, as reported in the most recently published Minerals Yearbook (Volume III), the estimated value of world crude mineral production has been generally declining since an historical peak in 1979 (16).* The costs of mineral extraction have, however, been rising rapidly. Individual project costs are, in general, exceeding the growth rate of mining companies, while operating and technical risks continue to increase (16). Risks resulting from currency flotation and political actions in the host country are also on the increase. Labor difficulties (such as those experienced by Phelps Dodge) and the Reagan Administration's recent rejection of a proposal by the International Trade Commission for higher tariffs and/or quotas on copper imports have also contributed to the mining industry's difficulties. The net result of these factors has been financial difficulties for mining companies with respect to paying for their current financial obligations as well as trouble finding new financing. It may be that one of the main factors in determining the future of the mining industry will be centered upon capital structure, i.e. how its assets are financed. Historical Perspective on Capital Structure In The Mining Industry As discussed by Isreal Borenstein in (4) and Thomas Navin in (7), mining firms typically have used a financial model based upon high financial leverage, i.e. large amounts of debt relative to equity. This has been especially true for American firms developing orebodies discovered overseas. Problems sometimes occurred for those who were forced to commit themselves to completion guarantees in order to obtain bank loans. Mines under these circumstances must be brought into operation regardless of market conditions. Politicians in overseas countries also may use the high profits required by these high risk ventures to argue for nationalization of mines. Coupled with the frequent use of high leverage, mining companies traditionally have paid out a higher percentage of earnings in the form of dividends than manufacturing firms. This is significant, in that such funds paid out in dividends are not available for other uses. Hence, a greater reliance upon debt and/or additional stock issues than would ordinarily be the case for manufacturing firms. Thomas Navin has stated in (7), that the theory behind the high dividend payout was that, "most mining investors thought of themselves as investing in a wasting asset, one that would gradually deplete over time until it ultimately became valueless." Investors, therefore, required a receipt, in the form of dividends, of a percentage of current earnings and a return on original capital. This view of reality, apparently, has not changed in some quarters, even though modern mine management ordinarily replaces depleted mines with new ones. It may be that this practice of high dividend payout coupled with relatively high financial leverage should be reexamined. Current capital structure theory could prove interesting and useful for those concerned with current conditions. Capital structure patterns and related practices in this industry are not, in many cases, congruent with those thought by some to be theoretically optimal. Prelude to Capital Structure Discussion With a few notable exceptions (such as the Guggenheims and Anaconda's chief operating,. officer in 1971) mining companies' chief executives and boards of directors have not been persons with financial backgrounds. This, one could conjecture, might have accounted for the relatively nonsophisticated nature of capital structures of mining companies. In order to appreciate the possibilities with respect to alternative influence on a firm's performance, one must be acquainted with the basics of financial theory. This paper is an attempt to familiarize the reader with (1) capital structure in general, (2) the usual components of this structure, (3) the general theory behind the use of financial leverage, and

Jan 1, 1985