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By Robert B. Parsons

"While it might seem like heresy to suggest that ""taxation"" can be a source of financing, never the less some generous tax rules can considerably enhance the tax savings pertaining to a particular expenditure or project. A basic tax knowledge, and careful tax planning, can optimize government participation in a project. INTRODUCTIONIn trying to identify sources of financing for a project, ""government"" as a source of funding is normally thought of in terms of government grants, loan guarantees, interest rate buy downs, property tax waivers, hydro subsidies, and so on. Generally, such concessions are somewhat difficult to obtain, especially in the current period of apparent fiscal restraint. One source of government funding which should not be overlooked is the income tax regime, and, at the provincial level, the various provincial mining tax regimes.While the taxpayer would not normally view a tax system as a potential source of government financing, nevertheless various federal and provincial rules applicable to the mining industry can offer attractive tax deductions - and tax savings - with respect to particular expenditures. In fact, it is not unusual for a civil servant to refer to a tax deduction as a tax ""subsidy"". For example, in the right circumstances, the cost of a smelter expansion in New Brunswick would cost the operator only 31 cents on the dollar, with the federal and provincial governments paying for the other 69 cents by foregoing tax revenues (Table I). In a sense, such tax savings could be compared to a government grant equal to 69% of project costs. Of course, not every project expenditure will generate that degree of government funding. The fact of the matter is that the percentages of tax savings attached to different expenditures cover a wide range, depending on a complex mix of factors. The point to understand is that the tax rules can offer some valuable savings, even after tax reform, and that a basic knowledge of the tax rules can yield some fruitful rewards."

Jan 1, 1989

"The present and possible futures commercial production of potash from various sources in the United States is discussed below under the following heads:1. Potash from the saline lakes.(a),Nebraska lakes.(b),California lakes.(c),Other lakes.2. Potash as by-product from the cement kilns.3. Potash as by-product from the iron blast furnace.4. Potash from silicate rocks.(a),Feldspathic material.(b),Leucite rocks of Wyoming.(c),Sericite slates of Georgia.(d),Glauconite (greensand) of New Jersey.5. Potash from Alunite.6. Potash from organic sources other than kelp.7. Potash from kelp.In this discussion very little more than passing reference, if any, will be given to those projects which up to date have been de¬veloped only slightly, if at all, beyond the small scale laboratory stage, or for the development of which there appears to be very little financial and technical backing at the present time. Nether or not many of these proposed projects have merit can be determined only by an actual operating demonstration.Generally speaking, the potash industry of the United States has been hardly more than marking time since the armistice. This is, largely due to the fact that the consumers of potash have been expecting that heavy shipments of foreign potash to the United States would be resumed soon at somewhere near the pre-war prices, and they have not been buying domestic potash at present prices for many months. The result has been that domestic producers have been unable to sell their product at even cost and many producers of potash have been obliged to close down. Thu Nebraska lake plants were closed down in February. The California saline plants were operating at below capacity, and the only large alunite plant is closed down. Even the cement plants have little or no inducements to recover the potash being lost in their waste gases, and the production is very small at present."

Jan 1, 1919

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011

By K. G. Black

When one's attention moves from the control of a process unit or from the control of a department of similar units, to the control of an entire plant, two things must change. One is the techniques of control, and the other, the goal or purpose of control. The goal is no longer maintaining a certain quality of product or maintaining a particular flow rate through a process unit. The goal becomes economic - how to make the most money out of the plant. The principal control techniques become those of optimizing, rather than regulating. It is quite common to discuss the control of an entire plant in terms of three levels of control l; regulation, supervision, and optimization. Regulation is the control of inputs to a process unit at desired values. This is accomplished by two or three mode analog controllers or DDC loops. The second level of control is the selection of these desired values, e.g., set-points of the regulation controllers. The third level is to make such adjustments or corrections to the supervisory calculations so as to optimize the plant profit. It is immediately evident that supervisory control and optimizing control are intimately related, and a distinct dividing line cannot always be drawn between the two. Some authors prefer to add even more levels such as adaptive control and management information systems, but we believe our point is well made without further division of the functions which are necessary for complete plant control. To accomplish the economic goal, that is, the optimizing (maximizing) of the profit of a mineral processing plant, the plant should ideally be operated as if it were a separate company, buying its raw materials on the open market and selling its products on the open market. While petrochemical plants endeavor to operate in that manner, unfortunately this is not true of a mineral processing plant. The plant manager has to accept the amount and quality of ore the mining department delivers to him, and the products (concentrates) are delivered to another department of the company for further refining. In some cases he may sell

Jan 1, 1972

By Paul F. Grundy

The ever changing conditions in the coal-mining industry and the increasing competition of other fuels such as oil, natural gas, wood refuse, etc., have made it imperative that the coal operator be in a position to supply a constantly uniform and clean product. The old idea of putting on the market "anything so long as it's black" no longer holds good. Today's users of fuel have to consider the amount of heat per dollar they obtain from the fuel they buy. Burning of coal has become largely mechanical, at least so far as industrial coal is concerned, and industrial coal is the kind the bituminous operator is for the most part called upon to supply. When we get into things mechanical, the matter of precision has a mighty bearing on efficiency. Precision in coal means standardization of quality, or uniformity of preparation in size and also in ash and moisture content. The trend of coal mining is ever towards more and more mechanization. Mechanization means coal-cutting machinery, loading machinery, conveying machinery, etc. Although such methods cut the cost, the cleanliness of coal so mined and loaded is not controllable to the same extent as when each operation is by hand labour. The operator has therefore the problem of mining his coal as cheaply as possible, but at the same time preparing a product which will to the utmost satisfy his customer. The answer is a mechanical cleaning plant. Before installing a cleaning plant, however, the operator must take into consideration the cleansability of the coal from his particular mine. This is accomplished by taking representative samples of the seam or seams to be treated, and subjecting these to screen tests, followed by float and sink tests on each size product. From these tests, it can be readily found to what degree of cleanliness the several sizes can be prepared advantageously, and also what will be the percentage recovery of cleaned coal. The accompanying tables give the results of representative tests on Michel coals of minus-2-inch size. All coal over 2-inc.h was intended to be hand cleaned. The coal-cleaning plants in general use at the present time come under two broad classifications, namely, wet and dry.

Jan 1, 1934

By Drew A. Meyer

Magnetic metals are the granddaddy of products which may be recovered from municipal waste. Aside from hand-picking of newsprint and corrugated boxes, magnetic metals are usually the first items a resource recovery facility considers extracting from the solid waste stream. Magnetic metals from incinerator residues and from municipally mandated source segregation programs were first used in significant quantities by the Copper Industry. The ability of the Copper Industry to consume metals from the municipal solid waste stream raised everyone's hopes that there would be more markets for municipal scrap when more of it became available. Somehow something has gone wrong. It is widely acclaimed that scrap is an environmentally sound and economical source of iron. It is greatly in demand for Its contained energy. The prices that the steel industry has been willing to pay for the scrap during the past year are all the proof anyone should need that scrap Is desirable and sought after. But the very fact that I'm speaking today on the markets for magnetic metals recovered from municipal waste indicates that something Is wrong. Clearly the problem is not that we do not need the scrap. The problem is we have not produced the kind of scrap that consumers are willing to buy - either through ignorance of what the consumers wanted or through a conviction that ferrous scrap is so obviously a good thing somebody will surely want it no matter what. Dr. Harvey Alter of the National Center for Resource Recovery has said "You can't sell garbage". In a sense that is only partly true. It really should be "You can't sell garbage for very long". The Steel Companies, in an effort to prove that steel is an environmentally desirable packaging medium, have bought some scrap that can only be described as garbage. They are to be commended for doing so. The fault lies not with the Steel Company for taking and paying for "garbage" but with the producer of that poorly prepared scrap. Far every instance where the steel industry has purchased the often undesirable product from resource recovery facility there are several magnetic installations sitting Idle because someone forgot the most essential part of producing the magnetic product - selling it to someone.

Jan 1, 1975

By Amos L. Beaty

The oil industry can prosper only if crude production is not excessive. This is true for several reasons. In the first place, the marketing branch of the business is so highly competitive that there is little room for profits in it. There are too many service stations, too many middle men or jobbers, too many refiners eager to press their products upon the market. And the battle is between the strong. If any money is being made in oil today it is by small marketers who buy products from the refining companies and sell on guaranteed margins. In the second place, refineries are overbuilt. There is a large surplus refining capacity. If refined stocks were drawn down they could and would be replenished in short time on short notice. This excessive refining capacity is not serious, however, if the supply of crude is limited to trade requirements. True, it may reflect upon the intelligence of the industry, but if there were a shortage of crude for a few years refining capacities would be readjusted. In the meantime no great harm could result from some idle capacity. It requires no computation to see that refiners could not produce surplus stocks of products from a short supply of crude. I have in mind, of course, the increased yields from cracking. Allowance must be made for that. Still, the picture is the same; less crude is required. I think we can have prosperity in the oil business if too much crude is not produced. A proper limit at this point would be felt all the way down the line. It would slow the refiner and slow the marketer inevitably. Once this constant pressure to make more and sell more is off, operations will be normal and there will be some return on investments. Peices in Relation to Production Potential production at this time is very large, and this condition has existed for many months. As a result the price of crude is low. It is below the average cost of production. Nevertheless, if restraints were withdrawn actual production would immediately increase and the situation would become even worse than it is now. Eventually, of course, the

Jan 1, 1932

By W. A. Thomas

STEAM is, and doubtless always will be, the basic power in the anthracite industry, either directly applied through engines and pumps or electrically. The rapidity with which electric power is being applied to the mining and preparation of anthracite leaves little doubt as to its utility and economy. There is practically no operation, except possibly the drilling of hard rock, that has not been successfully electrified and the matter of drilling is handled economically with electrically driven compressors and the standard compressed-air drills. Conservation and the seemingly ever-increasing cost of production, justify careful consideration of the possible results of the more extensive use of electric power in the industry. It is not planned to discuss, herein, the relative economies of individual applications but to consider the relative economy and flexibility of steam and electric power. The reports available for the year 1920 indicate a production of slightly over 80,000,000 tons of anthracite, of which 8,843,500 tons were used for power and heating purposes; in other words, over 11 per cent. of the production was used at the mines. Some of this was used to generate electric power at the mines, about 160,000,000 kw-hr., while 150,000,000 kw.-hr. was purchased from the public utility companies. One large producer, who is buying some electric power and generating some, used over 13 per cent. of the production for power and heating at the mines. Another producer, where considerable electric power is generated on the properties, is using less than 9 per cent. of the output for power and heating. One of the largest producers has a fuel consumption of over 15 per cent. of the output, besides which considerable power is purchased. A careful study of the field indicates that steam-operated plants use upwards of 13 per cent. of the production for power and heating, while electrically operated plants use about 1 per cent. for heating; so that, for steam-power purposes at least 12 per cent., or 268.8 lb., are used for power out of each ton produced.

Jan 9, 1921

By J. B. Newsom

In the Indiana limestone district, some 50 or 60 per cent of the merchantable stone in a quarry opening is waste, and only about 40 or 50 per cent of the stone from the opening is finally sold. So long as the present system of 'quarrying is used, the wastes measured and reported in this paper will continue. Comprehensive development of an entirely different method of quarrying, using wire saws for cutting, promises great improvement. Some of the savings to be expected are pointed out in the following pages. No attempt has been made to measure losses due to variations and natural flaws in the stone, since these vary greatly in different quarries, and accurate measurement would be difficult. The wastes that have been measured account for about 30 per cent of the total ledge, which leaves 20 or 30 per cent chargeable to unmeasured sources of loss. General Causes of Waste There are four general reasons for quarry waste: (1) the structure of the deposit, such as its shape, bedding planes, solution cavities and strain fractures; (2) efforts to quarry blocks which do not contain distinct color or textural variations; (3) the trade custom which permits purchasers to specify the size of the quarry blocks which they will buy, which is a matter of competition for business on the part of stone producers; (4) quarry methods, which cause the greatest amount of waste. Wide channeler cuts, hook holes, crooked splitting and uneven breaking on quarry floors are included in this category. Waste Due to Structure of Deposits The peculiarities of structure cannot be eliminated, but a chance for saving lies in quarrying to take advantage of them. The commercial deposits of Indiana limestone are lenticular masses from 20 to 70 ft. thick, and nearly horizontal. All of these deposits of good stone are in the Salem limestone, a bed in the sub-Carboniferous. The Salem is traversed by two systems of vertical fractures, a major system running from northeast to southwest and a minor system running from northwest to southeast. Where the stone is covered by an over-

Jan 1, 1932

By G Milligan

This paper describes how water is being planned, managed and used in Queensland as both a precious natural resource, vital for healthy ecosystems, and as a valuable tradeable commodity, necessary to secure economic prosperity. Queensland has been progressively implementing a planned package of water industry improvements agreed by the Council of Australia Governments in 1994. The Water Act 2000 provides the legislative basis for implementing the COAG water reform framework in Queensland and sets out statutory water planning processes. A Water Resource Plan (WRP) is a strategic document that specifies water sharing and environmental flow outcomes across a whole catchment over a period of up to ten years. A Resource Operations Plan (ROP) sets out the details of implementing a WRP, including environmental flow rules, establishment of tradeable water allocations that are separate from land, rules for water trading, rules for operating water infrastructure, arrangements for the release of any unallocated water identified in the WRP, and requirements for monitoring and reporting. Water Resource Planning and Resource Operations Planning are progressing in priority catchments and aquifers across the State. Ways to obtain a water entitlement now depend on whether a WRP and/or a ROP exist in a particular catchment. Water trading provides for the buying and selling of water entitlements on a permanent basis where permitted under a ROP. Details of tradeable water allocations are securely registered on the Water Allocations Register, which is similar to a land titles register. Leasing and temporary transfers of water entitlements are also possible. Water brokers are emerging to facilitate water trading which aims to improve water use efficiency and move water to higher value uses. Queensland is leading the way in the implementation of the COAG water reform framework and the pursuit of sustainable water resource management. The StateÆs progress in this regard is increasing certainty for water users, while ensuring that considerations of equity amongst existing and future users and amongst various uses, as well as considerations of ecological sustainability and the wider community, are all taken into account. The mining sector stands to benefit substantially from these new approaches to planning, managing and using this precious resource.

Jan 1, 2003

By Richard Moldenke

So FAR as the quality of the product is concerned, the history of the production of pig iron for foundry purposes is one of constant retrogression. The steps in this deterioration began with cold-blast charcoal pig iron, then anthracite iron, coke iron; then gradually warm to hot-blast coke iron, with the charcoal furnaces also heating their blast to get greater tonnages, and finally the present day hot-blast coke irons with scrap additions to the ordinary burden that, according to one European report, have gone as high as 135 per cent. Parallel with this quality retrogression is the enormous increase in furnace tonnages from about 15 tons daily to over 1000 tons per day in exceptional instances of modern practice. The key to this situation is economic pressure. The effect is a growing differentiation between furnace production for gray iron and malleable foundries and for the production of commercial steel. As the foundry is often compelled to draw upon the pig irons made for steel purposes, for economic reasons, whereas the steel industry does not draw upon foundry pig irons proper, the situation is resolving itself into one of grave consequence for the life of the gray-iron castings industry, and hence the intensive present-day feeling in foundry circles for rigid specifications to govern the quality of pig irons sold for foundry use. In the discussion of a paper on the use of scrap in the blast furnace held recently in the Institute, a very pertinent remark was made by one of the participating furnacemen, who confessed that "the things found wrong by the foundryman with his iron were beyond his depth." It may be added that those things are also beyond the depth of most foundrymen who, however, know from their results that they are getting poorer castings today with many pig irons than they did with those same brands in former years. Under the former fracture buying, the foundryman at least could select the strongest metal, as judged by the sledge, from various brands of similar fracture and pig section, and his results proved the soundness of his conclusions. With the advent of iron analysis, and in spite of the growing uniformity of the metal through greater tonnage

Jan 2, 1927

IN discussing the art of the goldsmith, it is apparent that it is an art requiring skill. He who wishes to be acclaimed a good master therein must be a good universal master in several arts, for the different kinds of work that come to his hands to be done are infinite. Those who work in gold and silver must outdistance all other craftsmen in learning and achievement to the same degree that their materials outdistance other metals in nobility. Therefore, it is necessary first of all to be a good designer, because design is the key that opens the doors not only to the goldsmith's craft but to all others. Then it is necessary that he understand melting and that he know well how to work with a hammer and how to use flat gravers and burins in engraving, as well as files and chisels. He must also possess certain secrets that are needful to the art, which in truth are parts of alchemy, such as softening gold when it is brittle and raw, coloring it when it has little color, soldering, enameling, working in niello, blanching, gilding, and an infinite number of things which must all be known in detail. But above all he who wishes to do this art well must be very patient in working, must know how to mould and how to proceed with the melt and with the file, hammer, chisel, or other implements for bringing his gold or silver work to the final state which he plans. He must also have good judgment in gems and know well how to recognize every [134v] good or defective quality they possess, and to distinguish the false gem from the true, either when set or when unmounted, as there is need; also how to value them both in buying or selling and in satisfying others who seek his appraisal. He should also be experienced not only in the technique of melting but also in the methods of assaying, parting, refining, cementing, and the like, and still many others. But if I wished to tell you of every part

Jan 1, 1942

By David B. Reger

The year 1936 in West Virginia was characterized by increased activity in natural gas. The number of actual completions was only slightly increased but many more wells were drilling than at the end of 1935 and there was almost feverish activity in taking new leases. This pronounced revival is partly due to the fact that the extremely cold winter of 1935-1936 showed that additional supplies of gas would be desirable and partly to the hope of finding new pools in the deeper sands. No new pools have actually been found, but the Oriskany sand (L. Dev.) development of Kanawha County, which was already assured by the end of 1935, was greatly extended into wider and richer territory. The Middle Devonian shale (Childres sand), reached incidentally by Oriskany exploration as well as by direct design, has been productive of gas in much wider areas of Boone, Lincoln, Putnam and Kanawha Counties than heretofore known. Routine drilling to the upper sands in dehed territory, also, was greatly increased, although not yet much reflected in completions. Thc supply of marketable gas, however, has been substantially enlarged. In preparation for further exploration there has been an extensive leasing campaign throughout the entire territory where gas seems at all probable, or ever possible. Exact figures are lacking, but new leases have certainly been taken on more than 1,000,000 arres. One operator estimates that 500,000 acres have been leased in the Appalachian geosyncline alone between Parkersburg and Charleston. Exploration, both for shallow and deep-sand gas, on some of these new leases is now under way. There was little activity in oil. No special search for new pools was made and none was found, but the usual routine drilling in old pools occurred. One major gas pipe-line enterprise was undertaken and completed. Operating technology was much the same as usual. In certain localities repressuring for oil has become a matter of routine, and in others the use of acid in treating small wells in calcareous beds has been continued. Financially, the year has been eventless. Some attempts to buy and

Jan 1, 1937

By John J. Croston

IN the closing months of 1936 the copper industry gave every evidence that it was at last on the threshold of an improved era. At the beginning of the year prices stood at 9 ¼ ¢, which in itself was a great improvement over prices prevailing for the three previous years. Industry generally was showing signs of moving forward in this country, and business was definitely good in certain foreign quarters. The threat of war and preparations for rearmament in Europe and Asia acted as a further stimulus to purchasing. By midsummer the situation had so improved and stocks had been so reduced that the cartel of foreign producers (including American producers with foreign mines) decided to increase the production quota to 75 per cent on Aug. 1. Large-scale buying gave continued strength to the price and by Oct. 1 the quota was increased to 80 per cent, and again on Oct. 15, to 85 per cent. Notwithstanding this the price of copper continued its advance and on Nov. 1, with stocks declining continuously, the cartel increased operations to 95 per cent, then to 105 per cent on Nov. 5. In the meantime the domestic producers, because of the great increase in home consumption, had increased their production by nearly one-half. At the close of the year copper sold at 12¢ per pound, and since the turn of the present year has reached 17¢. This rapid increase has not been wholly justified. Much of the increase was due to the legitimate demands of recovering industry, but rearmament orders plus accumulation of reserve stocks in case of war, purchases in anticipation of labor strikes and purely speculative activities on the London Metal Exchange accounted for the balance. Certainly in view of the state of industry and the general world price level, it appears unnecessarily high. Talk of a copper shortage is sheer nonsense, the recent condition in the market being created by overbuying, leaving but a small volume for speculative supplies. It takes some months for an increase in mine output to reach the market, but production is again overtaking apparent consumption, stocks have begun to increase, and this, together with the reopening of many small

Jan 1, 1937

By Louis Huber

DESPITE the fact that centrifugal fans were first developed for ventilating mines and that artificial ventilation was first practiced in mines, the lack of knowledge of mining men on mine ventilation in general, and on fan performances and characteristics in particular, is very much in evidence today. While it is true that mines are much better ventilated now than they were 20 to 30 years ago, we have made very little progress in the study of mine ventilation, or in mine ventilating fan design. Today the average mine operator is woefully dependent on the engineers of mine fan manufacturers when he is in the market for a fan, and this situation works to the disadvantage of both the operator and the manufacturer. The former may be imposed upon by an unscrupulous sales engineer and induced to buy a fan which is not the proper one for the mine; when it is operating it may be wasteful of power and even accessory to a serious mine disaster. More often, however, it is the fan manufacturer who is imposed on. If the operator asks the manufacturer to build for him a fan that will deliver a certain quantity of air against a certain specified pressure and requiring a specified number of horse power when operating under these conditions, the manufacturer may build a fan that will comply with these specifications to the letter. When the fan is installed it is frequently found that it is delivering a greater quantity of air against a lesser pressure or a lesser quantity of air against a greater pressure, and is requiring more horse power than specified in the first case and less than that specified in the second. In either case the operator usually upbraids the manufacturer for not meeting specifications, and refuses to pay for the fan. The trouble in either case outlined above is that the pressure necessary to force the specified quantity of air through the mine has been estimated incorrectly by the operator or his engineers. When a fan is designed and built to deliver a certain quantity of air against a certain specified resistance it will operate at its maximum efficiency only when it is operating under

Jan 2, 1926

By C. D. Keen

In the latter part of the summer of 1913 the Conservation Commission of the State of Louisiana, under presidency of M: L. Alexander, decided to stop the waste of natural gas going on at the "burning gas-well," Located about 2 mile southeast of Oil City, La. On several occasions, both in newspapers and in reports, comment had been made on the condition of this well, its harmful effect on the Caddo gas field, and the considerable loss, estimated at several thousand dollars each month, caused by the escape of the valuable fuel., But nothing had been done to bring the well under control and prevent further waste of gas until the State Conservation Commission took the matter in hand. The gas fields of Louisiana are among the greatest in the country. So far most of the gas has been found in the Caddo field proper, although considerable development has been done in and around the city of Shreveport and near the town of Mansfield in DeSoto parish. To extend the life of the gas fields and to prevent the quick exhaustion of the supply of the natural fuel are matters of vital importance for this section of the country. Four gas companies have entered the Caddo field and supply the surrounding towns and cities With gas. The Arkansas Natural Gas Co. has pipe lines to Little Rock, Ark., and supplies gas to the following cities and towns in that State: Texarkana, Hope, Garland, Emmet, Prescott, Boughton, Beirne, Gurdon, Arkadelphia, Gum Springs, Mal-vern, Dsnaldson, Gifford, Perla, Beaton, Beauxite, Mabelvale, Bryant, Sheridan, Pine Bluff, Little Rock, Argenta, Pulaski Heights, and Hot Springs. The Southwestern Gas & Electric Co. transports gas to Mooringsport, Blanchard, Caddo, Rodessa, Oil City, Vivian, Bloomburg, Hosston, Ida, Dixie, Belcher, and Shreveport. The Marshall Gas Co. supplies gas to the town of Marshall, Texas. The Louisiana Co. has a line to Shreveport. In, the oil field the gas is used for drilling purposes, and the operators either have their own gas system or buy from the gas companies. At the present time the surrounding territory depends for its fuel supply on the Caddo field, and the importance of the conservation of the natural-gas

Jan 1, 1915

By Richard Moldenke

So far as the quality of the product is concerned, the history of the production of pig iron for foundry purposes is one of constant retrogression. The steps in this deterioration began with cold-blast charcoal pig iron, then anthracite iron, coke iron; then gradually warm to hot-blast coke iron, with the charcoal furnaces also heating their blast to get greater tonnages, and finally the present-day hot-blast coke irons with scrap additions to the ordinary burden that, according to one European report, have gone as high as 65 per cent. Parallel with this quality retrogression is the enormous increase in furnace tonnages from about 15 to over 1000 tons per day in excep tional instances of modern practice. The key to this situation is economic pressure. The effect is a growing differentiation between furnace production for gray iron and malleable foundries and for the production of commercial steel. As the foundry is often compelled to draw upon the pig irons made for steel purposes, for economic reasons, whereas the steel industry does not draw upon foundry pig irons proper, the situation is resolving itself into one of grave consequence for the life of the gray-iron castings industry, and hence the intensive present-day feeling in foundry circles for rigid specifications to govern the quality of pig irons sold for foundry use. In the discussion of a paper on the use of scrap in the blast furnace held recently in the Institute, a very pertinent remark was made by one of the participating furnacemen, who confessed that "the things found wrong by the foundryman with his iron were beyond his depth." It may be added that those things are also beyond the depth of most foundrymen who, however, know from their results that they are getting poorer castings today with many pig irons than they did with those same brands in former years. Under the former fracture buying, the foundryman at least could select the strongest metal, as judged by the sledge, from various brands of similar fracture and pig section, and his results proved

Jan 1, 1927

By Dr. O’Neil Thomas J., Donald W. Gentry

"We should be concerned about the future be- cause we will have to spend the rest of our lives there. " -Charles Kettering INTRODUCTION Since the early 1970s, there has been no economic phenomenon that has been more widely discussed or experienced in the United States than inflation. Al- though its precise definition and measurement are elusive, inflation has had pro- found and extensive impacts on the manner in which nearly everyone lives. It is painfully obvious to consumers that inflation is characterized by a continuing up- ward spiral of prices. In a capital-intensive industry like mining, those increases can be positively breathtaking. An interesting example is shown in Table 1. Table I shows that on a unit basis, the equivalent 1980 capital cost of Cuajone was over six times the cost of the adjacent and quite similar Toquepala operation completed in 1959. Such sobering statistics weigh heavily on the minds of executives who are contemplating major investments in new mining facilities. In spite of its monumental presence, inflation has usually been either inadequately covered or totally ignored in textbooks on engineering economy. The reasons for this are not entirely clear, but a contributing factor is the inherent difficulty in accurately predicting inflation. However, under certain conditions, inflation may become the most important factor in a mining investment, and it can rarely be safely ignored in capital investment analyses. DEFINING AND MEASURING INFLATION Defining inflation and related terms is relatively easy. Its measurement, how- ever, is the source of almost endless debate in economic and political circles. How- ever, much of that debate is not relevant to the scope of this book, so that only those issues which impact directly on the capital investment decision are covered in this section. Inflation is the general decline in the value of money as measured by what it will buy. It is clear, then, that the rate of inflation varies with the particular currency under consideration as well as the type of goods and services being purchased. One would find, for example, that the general rate of inflation relative to German marks

Jan 1, 1984

By John J. Croston

In the closing months of 1936 the copper industry gave every evidence that it was at last on the threshold of an improved era. At the beginning of the year prices stood at 91/4c, which in itself was a great improvement over prices prevailing for the three previous years. Industry generally was showing signs of moving forward in this country, and business was definitely good in certain foreign quarters. The threat of war and preparations for rearmament in Europe and Asia acted as a further stimulus to purchasing. By midsummer the situation had so improved and stocks had been so reduced that the cartel of foreign producers (including American producers with foreign mines) decided to increase the production quota to 75 per cent on Aug. 1. Large-scale buying gave continued strength to the price and by Oct. 1 the quota was increased to 80 per cent, and again on Oct. 15, to 85 per cent. Notwithstanding this the price of copper continued its advance and on Nov. 1, with stocks declining continuously, the cartel increased operations to 95 per cent, then to 105 per cent on Nov. 5. In the meantime the domestic producers, because of the great increase in home consumption, had increased their production by nearly one-half. At the close of the year copper sold at 126 per pound, and since the turn of the present year has reached 17c. This rapid increase has not been wholly justified. Much of the increase was due to the legitimate demands of recovering industry, but rearmament orders plus accumulation of reserve stocks in case of war, purchases in anticipation of labor strikes and purely speculative activities on the London Metal Exchange accounted for the balance. Certainly in view of the state of industry and the general world price level, it appears unnecessarily high. Talk of a copper shortage is sheer nonsense, the recent condition in the market being created by overbuying, leaving but a small volume for speculative supplies. It takes some months for an increase in mine output to reach the market, but production is again overtaking apparent consumption, stocks have begun to increase, and this, together with the reopening of many small

Jan 1, 1937

By Charles White Merrill

Money is one of the most .pervasive elements in human life. The compensation for a workman's daily efforts is expressed as a wage and is measured in money. What an individual may consume depends largely on his income which also is expressed in terms of money. If he would start an enterprise its size would be determined in large part by the amount of money available for capitalization and its success would be measured in net income expressed in money. In short, the most widely used common denominator for comparing merchandise, real property, jobs, enterprises, gross national product, or personal success is money. Despite this use of money by almost everyone past infancy to express his appraisal of the in- numerable values he sees around himself, the complexity of the device called money makes its nature and workings a mystery to most users. Some of the difficulty in understanding money results from the fact that it has three distinct but interrelated functions: (1) a medium of exchange, (2) a unit of account, and (3) a store of value. In many statements about money the discussion moves from one function of money to another without the speaker or the listener recognizing the changes. For example, the housewife says "We took the money we had saved up to make the down payment and after twelve monthly payments the television will be ours." When this housewife spoke of "saving up the down payment" she referred to money in its function as a store of value; when she spoke of "the down payment" she was using money as a medium of exchange; and when she referred to the "monthly payments" she spoke of money as a unit of account. Another cause of confusion in understanding money is its paradoxical nature in that it represents both the power to produce and the power to consume. For example, when the rich uncle dies one nephew may regard his inheritance as an opportunity to buy a farm and leave the ranks of the wage earners to become an independent producer, whereas the other nephew may regard his portion as the means of living in complete leisure as a pure consumer.

Jan 1, 1959