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By L. L. Hirst

In 1944, the 78th congress of the United States enacted Public Law 290, which directed the Secretary of the Interior, acting through the Bureau of Mines, to furnish industry with basic information and cost data for the development of a synthetic liquid fuels industry. Recently published information with respect to the cost of synthetic liquid fuels processes indicates a wide variation in estimated results. To clarify the results and inconsistencies for the hydrogenation of coal, the Bureau of Mines has prepared preliminary designs and calculated detailed investment costs from which the operating costs to produce 30,000 barrels per day of liquid products, mainly gasoline, by coal hydrogenation were obtained.

Jan 1, 1949

By R. W. Raymond

On the Manchuria. SOMEWHAT fatigued with excess of enjoyment and strenuous continuity of movement on the trip to and through California, the members and guests of the Institute party embarked Tuesday, Oct. 17, on the Pacific Mail S. S. Manchuria for a further journey to and through Japan. The good ship displayed the flag of the Institute (blue cross-hammers on a white ground), together with the Stars and Stripes and the ensign of the company. Uninterrupted fair weather and smooth water attended the passage to Honolulu. The Manchuria proved herself most commodious, comfortable and clean ("A sweeter steamship never sailed," quoth President Hunt) ; Captain Dixon and his officers were most agreeable, as well as most efficient; the passenger list comprised many congenial people besides ourselves-among them a score of missionary folk, and also Mr. M. H. de Young, Vice-President of the Panama

Jan 1, 1912

By H. W. Gillett

This bulletin is issued by the Bureau of Mines as a contribution to the increase of safety and efficiency in the preparation and utilization of the mineral resources in the United States. Notable among the drains on these resources are the demands made by the nonferrousmetal industries, and in these the losses occasioned in melting brass and bronze are worthy of particular attention. This statement will be better appreciated by a consideration of the size of the brass industry. MAGNITUDE OF THE BRASS INDUSTRY. According to the Thirteenth Census, in 1909 there were in the United States 1,021 fu-ms that dealt mainly in brass and bronze. This total included jobbing foundries, manufacturing plants that both cast and machine a brass or bronze product, and rolling mills, but did not include iron foundries having nonferrous departments nor the numerous large brass-foundry departments of manufacturing plants that produce the castings used in the manufacture of electrical apparatus, cash registers, pumps, and the thousands of machines that require brass castings for their construction. Penton's Foundry List for 1910 gives about 1,150 exclusively nonferrous foundries and about 2,300 iron or steel foundries that also melt brass. If the rolling mills and. jobbing foundries in manufacturing plants be included, and if due credit be given to the rapid growth of the industry in the last few years, largely through the stimulation of the automobile busi¬ness, it is probable that not less than 3,600 plants are to-day melting brass or bronze.

Jan 1, 1916

* Kennecott Copper Corp. gets Charles R. Cox as president on Jan. 1. Mr. Cox is resigning his position as president of Carnegie-Illinois to take the new post with Kennecott, left vacant by the death of Mr. Stannard in September. •The ECA signed a contract in December to advance X3,600,000 to Newmont Mining Corp. to aid development of lead and zinc mines in French Morocco. The funds are to be repaid in lead and zinc for the United States' stockpile over a period of seven years. The mines are owned by the Societe des Mines de Zellidja, with which organization Newmont is associated. • Under the direction of John M. Brooks, Jr., general manager, the Matahambra mine in Cuba, will probably produce sufficient tonnage to make 4 million lb of copper per month during 1950. The grade is presently running between 7 and 10 pet. •S. H. Ash reports that the fatality rate per million-man-hr for the anthracite industry for 1949, through November, is 0.78. This is 15 pct better than that achieved during 1948, which was the lowest fatal injury rate in coal mining history. The first full year on record without a major disaster was recorded in 1949 (p. 34). •The Atomic Energy Commission has authorized the production of 200 lb of uranium metal for use under AEC license in non-Commission research projects. •A national survey of projected 1950 purchases of new machine tools, machine tool accessories, materials handling equipment, etc., just completed by the American Society of Tool Engineers reveals that, of the companies reporting, 80 pct state that they plan to buy either more equipment or the same amount as in 1948. • Armour Research Foundation is conducting investigations for the use of clay and shale deposits to make lightweight aggregates. The material is heated until it expands and forms material suitable for mixing with cement which it is hoped will be lighter, stronger, have better insulating qualities and will lower the cost of concrete. •In the first six months of 1949 the bituminous coal miners' average hourly earnings were $1.94 -as compared with X1.392_ national average for all manufacturing. Average annual earnings of full-time employees in the bituminous coal mines in 1948 were $3387 as compared with $2809 for all industry. •LaSalle Business Bulletin reports: "year ends on a rising trend in industry and trade ... nearly record-breaking demand from almost all sources keeps business high... most indicators but little below postwar peak... forces keeping activity high arestill powerful--changes in general business conditions likely to be slow and moderate." •Office of Internal Trade of the Commerce Department requests that technical data significant to the national security which is to be sent outside of the United States be submitted to it for an official opinion on the desirability of transmitting such information. This voluntary compliance program is part of our national security control. • Blast furnace slag reduced to 12 to 16 mesh is being used for sanding track at the Mont Coal mines of Armco. The slag replaces silica sand which caused silicosis. It has proved so effective and cheap that tests are being made to use the slag for rock dusting.

Jan 1, 1950

The work of the Committee on Industrial Preparedness* is well summed up in the following letter written by Thomas A. Edison, Chair-man of the Naval Consulting Board, after President Wilson and signed the army appropriation and army reorganization bills: "The Committee on Industrial Preparedness of the Naval Consulting Board, of which committee Howard E. Coffin is chairman, after a five months' campaign in many ways unique in vigor and vision has played a very definite part in the measures for the national defense which have just become law. It is responsible for having laid the foundation for a true industrial preparedness in this nation. "Five months ago the committee, wholly non-partisan in make-up, acting with the civil, mechanical, mining and electrical engineers and the chemists of the country, members of five great scientific bodies, began its work in' every nook and cranny of the land. The purpose was to prepare American industry efficiently to support the armed forces of America in the event of war. "The public, the business men and the legislators at Washington knew little regarding the demands on industry in connection with modern war. No department at Washington was charged with the duty of coordinating the needs of the army and navy with transportation, industry, and kindred functions. The purchasing, quartermaster's and ordnance departments of the army and navy were unable to buy military supplies except by competitive offering in the open market. No one had considered the need, and no legislative machinery was in existence, for preventing the presence of skilled workers on the fighting front when they would in time of war be needed in the factories, mills and mines of the country. Neither at Washington or elsewhere was there even a list of the industrial resources of the nation in such shape as could be used for practical purposes in case war should come. "The three things, then, that the committee headed by Mr. Coffin set out to do and that now have been brought about were as follows: First, to mobilize concretely the business men of America and their output against a day of need. This meant chiefly to discover in fullest detail just what equipment our manufacturers possessed that might be swung over to supply the army and navy swiftly and bountifully from the hour the colors were raised. In a few weeks this initial task, which has been a truly colossal one, will be at an end. A complete report of the equipment of practically every concern of substantial size in the country is now in the hands of the - committee. Directly in charge of the great inventory has been W. S. Gifford, Supervising Director of the Committee. The second step was to procure legislation making possible the placing by the war and navy departments of annual orders for munitions in small quantities to American manufacturers now not producing such things, so that quietly, efficiently and thoroughly they could learn in time of peace how to supply the government in time of war. The new laws make all this possible. It should be said here that this practice will bring about a geographical diffusion of munition plants all over our country, instead of affording us only a few such concerns for the most part near the exposed seaboards, as at present. It is obvious that this system will also throttle all talk of a munitions trust.

Jan 10, 1916

By Raymond W. Peterson

The practice of Countertrade and all of its variations has increased dramatically during the last five years in great part due to the worsening world economic situation and the Third World's increasing debt problems. Conventional wisdom has held that the goods finding their way into countertrade will tend to be manufactured goods of ever increasing value added. It is my contention that this has not been the case. The continued depression of most metals and minerals prices has conspired to keep a great number of metals and raw materials in the forefront of countertrade negotiations. The concept that if a country needs hard currency it will simply sell metals into world markets for cash has been significantly modified by countertrade which encourages subsidies for raw materials which are in turn funded by higher prices for the manufactured goods which the country must import. Countertrade is a term that is relatively new to most of us who have been involved in the international trade of metals and minerals, but it is one that we will continue to hear more of in the future. Countertrade as it is generally known today had its beginnings after the Second World War in Eastern Europe. As the shattered economies of Europe struggled to right themselves, a "cashless" system of trade developed. This system included such ancient concepts as barter as well as more modern ones like bilateral clearing agreements. For over 30 years countertrade was confined mainly to the COMECON nations and their various trade protocols with Third World nations. If metals and minerals were involved, there was little disruption of world markets by such examples as Cuba shipping ferronickel and sugar cane to the U.S.S.R. for a host of manufactured goods and oil. As the world's economy began to slow in the late 70's and the debt crisis began in earnest in the early 801s, this all began to change. As more and more nations which had previously been almost totally dependent upon their mineral wealth over-extended themselves in an attempt to industralize, they concurrently found their income from minerals falling, due to the decreased demand and subsequently lower prices available in the marketplace. At first these nations attempted to balance their payments by promoting the sales of their high value-added manufactured goods. We have all heard numerous examples of U.S. companies going to sell their high technology products in Rumania or Yugoslavia and being confronted with counterpurchase requirements for machine tools, shoes or drill bits. When faced with these demands, a number of companies chose not to sell into those markets while others merrily signed up the obligations without much intent to carry them out. The Performance Bonds required were generally minimal, especially when considered in light of the high margin inherent in high tech items; and the penalty clauses were equally small or nonexistent. A third group of companies actually tried to buy the machine tools or drill bits either for their own internal use or resale but found that due to poor quality and high prices, they were faced with a difficult if not impossible task. This is not to say that no one was able to fulfill a countertrade requirement, but the success ratio on these transactions was incredibly low. This was one of the major contributing factors to the reputation that countertrade has gained as a discipline ... "that it is mostly talk and very little action." As this situation slowly evolved, both the countries imposing the countertrade obligation and the exporters assuming the obligation began to realize that something

Jan 1, 1986

By John K. Hammes

INTRODUCTION This introductory paper presents a description and definition of what the finance function is and what it specifically means for the mining industry. In its simplest terms, finance is, "management of money matters". As an area within the discipline of business administration it draws heavily on the related fields of economics and accounting, and to a lesser extent on marketing and production. MINING FINANCE DEFINED In preparing to write about what finance means to the mining industry, I asked a number of mining people the question, "What does mining finance mean to you?" Most responded that mining finance was "How a company borrowed money for mine development", and perhaps half those questioned included "raising equity" in the definition. It is not surprising that the mining industry concept of finance is the providing of funds needed for the objectives of the business, for that was once a view shared by authorities in the field of business administration. Further, it is certainly the area where much of the emphasis has been placed in the past ten to fifteen years as the industry struggled with the development of more remote and more refractory or lower-grade orebodies while profitability and internal cash flow were below expectations. No wonder project finance became such a popular topic. Twenty years ago it is probable that the emphasis would have been on mine valuation, for that subject was the area of finance then most often examined in industry publications. Papers concerning the pros and cons of payback, internal rate of return, and discounted cash flow appeared regularly. Let's examine the following situations, each the result of a financial decision: - Funding the exploration program in a developing country was accomplished by buying the next six-months budget needs in local currency. One week later the currency devalued 30 percent. If the purchase had been delayed or the local currency borrowed short term, a substantial saving would have been made in funding the program. - A major mining company borrows heavily to finance both expansion of its primary mining business and its entry into several new industry segments. When markets for all of the commodities it produces turn down for a prolonged period, there is concern over the adequacy of cashflow to cover debt service in addition to other company needs. The company's financial officers, however, had arranged very large committed credit facilities from numerous financial institutions which assured the availability of funds for several years. This enabled the company to implement a strategy to conserve cash, sell assets and survive until conditions improved. Further, short term suppliers of credit also were comfortable with the assurance that longer term credit was there to support them. -A medium size mining company financed several mines independently with limited obligations on the part of the parent company. The company decided to refinance the operations under one agreement. More flexible terms, lower interest cost and a longer tenor financing were achieved in return for assuming the risk as a direct obligor. - The exploration and development group of a large mining company proposes to develop a new mine in a country in which the company does not presently operate. When the investment is rejected they are advised that one reason was that the reinvestment assumption inherent in the discounted

Jan 1, 1985

By Alistair Frame

INTRODUCTION In April 1988 discussions were about to start with BP on the possibility of buying their- mineral interests, and it took a long time to arrange a deal. I will talk about RTZ without BP Minerals, look at the new RTZ with BP Minerals, discuss the outlook for metal prices, and review the problems in South Africa and develop the case against sanctions on that country. RTZAT THE END OF 1988 Late in 1987, after completing a worldwide review of our strategic thrust, we decided: 1. That the business focus would be to remain a major diversified natural resource group with interests in related industries. 2. To divest non-core and low growth businesses. 3. To develop a logical acquisition plan. 4. To emphasise organic growth and, most importantly, to enhance shareholders' wealth by capital increase and a progressive dividend policy. Subsequently, we concluded that we should sell our oil and gas business and dispose of several assets for which we saw little growth potential. The disposal programme raised some U.S.$ 1,600 million, representing a significant capital gain on our various investments. All transactions were carried out by our small Head Office staff in London, without the help of merchant banks and lawyers, and we were able to safeguard the employment of our staff in all these operations. The most interesting disposal was of our oil and gas interests. Before the 1987 strategic review, we had ambitions to develop our oil and gas interests and to become the leader in the second division of European oil companies. Our interests, which were purely in exploration and production of oil and gas, consisted of the 100% owned RTZ Oil and Gas company, and 29% of LASMO, a publicly quoted U.K. oil and gas company with extensive worldwide interests. LASMO, in turn, owned 25% of Enterprise Oil, one of the more successful of the North Sea oil exploration and production companies. Prior to the end of 1987, our intention was to acquire control of both LASMO and Enterprise. However, when we evaluated the net asset value of these two companies based on our oil price assumptions, which were pessimistic for the next five years or so, we concluded that they were both trading in the market at significant premiums. This, taken with the additional premium required for acquisition and the high cost of exploration, led us to conclude that, since funds could undoubtedly be used to better effect, we should sell our interests. Turning to the other major achievements in 1988, we commissioned, and built up to design levels in a very short period of time, the Morro do Ouro gold mine in Brazil. This mine reached its design output of 100,000 ounces of gold per year within three months of start-up, which was on time and under budget. We are now considering a possible expansion of this property. In South America, Utah International, Mitsubishi and RTZ arranged non-recourse finance, with post completion guarantees, for the giant Escondida Project in Northern Chile. Financing came from a group of banks in Japan, Germany and Finland -- the countries to which most of the concentrates will be sold -- and from the LEC. The average output of the mine for the

Jan 1, 1990

By D. L. Rainey, E. R. Goter, W. R. Hudspeth

THE area in which spodumene-bearing pegmatites occur extends from Gaffney, S. C., in a northerly direction to Lincolnton, N. C., a distance of about 16 miles. The zone averages 2 miles in width. Interest in this area was first aroused by the discovery of small amounts of cassiterite in the peg-matites and in greissen which occurs on the walls of some of the pegmatites. Attempts were made from 1880 into the 1920's to mine and concentrate cas-siterite, but there were no successful operations. In 1935 L. M. Williams became interested in the area and began prospecting by trenching and sinking several small shafts. He gradually gained control of a considerable acreage south of the city of Kings Mountain, N. C. Mr. Williams states that he produced some ore from a shaft which he shipped to the Maywood Chemical Co. in the late 1930's. In 1937 G. H. Chambers of the Foote Mineral Co. visited the area and examined several properties, but the lithium market was too small to support the necessary concentrating plant. Early in World War II the Solvay Process Co., encouraged by various federal agencies, acquired the Williams properties and leases and started a drilling program to develop reserves for spodumene mining. A study of this area was also made under T. L. Kesler by the U. S. Department of the Interior Geological Survey. Starting in 1942 a concentrating plant, water supply dams, and shops and other buildings were constructed. The Superior Stone Co., a neighboring crushed stone operator, was awarded a contract to mine and crush the pegmatite ore. Late in 1943 the plant started operations, which were continued until February 1946. A drop in demand for lithium chemicals forced it to close and remain closed for several years. In 1948 the Foote Mineral Co. became interested in assuring itself a source of lithium ore on the North American continent, to be used in the production of lithium ore chemicals, and inspected properties in Canada, South Dakota, and North Carolina. The North Carolina deposits were the most promising. In the fall of 1950 the company leased the Solvay interests with option to buy and acquired additional properties. Renovation of the mill and preparation of the quarry for mining was begun in earnest in January 1951. A new crushing plant was built and construction started in July 1951. The flotation process used was developed in the North Carolina State Minerals Research Laboratory located at Asheville, N. C. Foote is now in the process of expanding its production. The crushing plant is being revamped and much of the old milling equipment purchased from Solvay will be replaced by new. Mining equipment of suitable capacity has been received and is in use. The frontispiece is a general view of the mill. The orebodies consist of pegmatite dikes composed of fine-grained albite and quartz, with varying amounts of mica and spodumene. The latter may amount to as much as 50 pct of the rock, but the overall average is about 15 to 20 pct. Tin, columbite-tantalite, beryl, and other valuable minerals are present in varying small amounts. These dikes, which intruded into the Roan Gneiss underlying most of the Piedmont area, strike approximately N 30 E and dip about 85" to the west. The gneiss has the same strike but dips about 70" west. The dikes lie in a belt extending from Lin-colnton, N. C., to Gaffney, S. C., and passing through

Jan 1, 1954

By Granville S. Borden

MANY complaints have been filed by mine prospectors, explorers and producers about inequities in mining taxation. They have insisted upon improvement, and in the past 35 years there has been some progress. Many of the best taxation provisions made to date are those contained in the Revenue Act of 1951. Mining economics presents special problems, a fact even recognized by many textbooks. Certain provisions have been made to take care of mining taxation rights, but these have been made by Congressional act and do not represent basic, constitutional, guarantees. Despite special provision, in the form of depletion allowances, there remain injustices. The industry faces the problem of gaining adequate income tax allowances for exploration and development expenditures, operating losses, and bonus and subsidy payments. Problems in mine taxation arose soon after the adoption of the 16th Amendment. This amendment gave Congress the power to impose income taxes. Supreme Court decisions against a number of mining companies held that Congress, under its power to tax income, could tax net operating revenue before depletion allowance was deducted. The court also ruled that the right to deduct depletion is a matter of Congressional permission. There is no statute provision permitting mining stockholders to recover their investment out of dividends while the mine is being operated. The Supreme Court did not recognize that part of mining proceeds are actually amortization of the cost of mineral rights. Both these omissions stem from failure to recognize that by its very nature mining consumes its mineral rights and therefore that a part of gross proceeds are not income but recovery of capital. Suppose a Congress unfriendly to mining interests repeals the provisions that allow deductions for depletion. Under such a situation assume that a corporation buys a mineral deposit for $300,000. They mine the deposit and earn an operating profit of $500,000. At the current rates they would pay a Federal Income tax of in excess of $250,000. This venture results in a loss of $50,000 as shown in the table below. For the example given the absence of depletion provisions in income tax law would turn ore into waste rock, because the word "ore" connotes commercially mineable rock. [ ] In retrospect the conclusion is clear: If the Supreme Court had recognized that a part of mining proceeds represent in reality sales proceeds of mineral rights, then profits derived from such sales would have been taxed at the favorable long-term capital rates, instead of being taxed at the high normal, surtax and excess profits rates. It is a question whether percentage depletion allowances offset this tax situation. History The history of depletion allowances has been one of general improvement. The original act did not include depletion, but an allowance at the rate of 5 pct of gross proceeds was provided in 1913. The Acts of 1916 and 1917 allowed depletion upon cost of property, and in 1918 the law was further changed to permit depletion upon cost, or market value as of date of discovery. In 1932 metal, coal and sulphur properties were permitted to elect depletion in percentages of gross income, limited to 50 pct of net income, in lieu of cost depletion. Shortly thereafter the rule was changed and percentage depletion is now allowable in any case where it is higher than cost depletion. Since 1942 percentage depletion allowances have been extended to cover many nonmetals, and in 1951 the rate for coal mines was increased from 5 to 10 pct of gross income. It is interesting to note that these allowances have been retained, and even

Jan 1, 1952

By George D. Graffin.

The first use of graphite is lost in the mists of time. It was used by primitive man to make drawings on the walls of caves and by the Egyptians to decorate pottery. As early as 1400 A.D. graphite crucibles were being made in the Haffnerzell district of Bavaria. Through the Middle Ages graphite was confused with other minerals, especially galena and molybdenite. Two common names that are still used for the mineral are "Plumbago," meaning leadlike, and "Black Lead." The latter name implied that graphite is either composed of lead or at least contains a large percentage of it. Gessner is credited with having recognized it as a separate mineral in 1565, but its composition was not determined until 1779, when Scheele demonstrated that graphite oxidized to carbon dioxide, thus proving its carbon constitution. In 1789, Werner named it "graphite" from the Greek word "graphein," meaning to write. The United States has long relied on foreign countries for its graphite supplies. This reliance has been due more to the lack of suitable domestic graphites than to any particular preference for buying minerals overseas. Ceylon (now Sri Lanka) graphites were imported as early as 1820, and Madagascar graphites have been imported since the properties on that island were opened up about a hundred years later. Mexico has long supplied the United States with most of its requirements for amorphous graphite. Physical Properties and Classification Graphite is found in laminated, flaky aggregates disseminated in schistose rocks. It also occurs in veins and exhibits a foliated or fibrous structure. Graphite is a black lustrous mineral that crystallizes in the hexagonal system, with rhombohedral symmetry. The crystals have tabular form and are six-sided; the faces are commonly striated. The flakes have perfect basal cleavage and are opaque. When well crystallized, the flakes have a black metallic luster while the amorphous material is black and earthy, with a microcrystalline compactness. The flakes feel greasy. Graphite is an excellent conductor of heat and electricity. It melts at approximately 3550°C at a triple point under 1250 psi. It sublimes between 3300-3500°C at 14.7 psi. At 3726°C a second triple point occurs at approximately 100,000 atmospheres. Thermal oxidation in the presence of oxygen begins at 300°C and the rate increases with temperature. The three forms of carbon (charcoal, graphite, and diamond) are distinguished by chemical and physical tests. The specific gravity of charcoal is 1.3 to 1.9, of graphite 2.266 g/ cm3 (crystal density), and of diamond 3.5. Graphite has a hardness of 1 to 2 (Mohs' scale). Natural graphite can be divided into three classes: disseminated flake, crystalline vein (fibrous or columnar), and amorphous. Flake graphite is a lamellar form found in metamorphic rocks, such as marble, gneiss, and schist. Each flake is separate, having crystallized as such in the rock. Crystalline vein graphite is found in the form of well defined veins or as pocket accumulations along the intrusive contacts of pegmatites with limestones. The graphite of such deposits is of two types, foliated and columnar. The important Sri Lanka (Ceylon) deposits are vein type. Amorphous graphite is commonly found as minute microcrystalline particles more or less uniformly distributed in feebly metamorphic rocks, such as slates and shales, or in beds consisting practically entirely of graphite. The latter usually are metamorphosed coal seams and carry as much as 80-85% graphitic carbon, while the former, being altered carbonaceous sediments, commonly range from 25 to 60%

Jan 1, 1983

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022

Australian coals tend to be young in geological age and high in ash by world standards; preparation of the coal before marketing is almost universal. On the basis of float and sink data from 39 locations in the Eastern Australian coalfields, the coals are placed in four categories representing increasing difliculty in their washability characteristics. These seem to be related neither to the geological age nor the geographical position of the deposit and Hunter Valley coals, for example, span all categories. The influence of crushing on the washability of Australian coals is briefly considered and from limited data it is concluded to be appreciably smaller than for British or North American coals. A strategy for the float and sink analysis of Australian coals is proposed and the influence of washability characteristics on current trends in the selection of separating processes for coking and steaming products is discussed.

Jan 1, 1979

By M. W. Von Bernewitz

The Bureau of Mines receives frequent requests for information on the treatment of mercury ores, but as its own and almost all other publications on mercury are out of print, the Bureau has prepared this circular on the metal for the prospector and operator of small mines and plants. Mercury, commonly though improperly termed ?quicksilver?, is the only common metal that is liquid at ordinary temperatures. Mercury is used in the amalgamation of gold and silver, in power boilers, explosives, friction-less bearings, laboratory apparatus, lamps, medicine, paint, rectifiers, and for ?silvering.? The last mentioned is being superseded by silvering with silver. The use of mercury boilers may increase when they are thoroughly understood, but amalgamation is -being replaced to some extent by the use of corduroy and other collecting mediums, such as jigs and flotation cells.

Jan 1, 1937

By Mark D. Hannington

Drilling of the active Trans-Atlantic Geotraverse (TAG) deposit during ODP Leg 158 indicated that the size of the mound-stockwork complex is approximately 3.9 million tonnes, including 2.7 million tonnes of massive and semi-massive sulfide (ca. 2% Cu) at the seafloor and 1.2 million tonnes of mineralized breccias (ca. 1% Cu) in a subseafloor stockwork. Quartz-pyrite veining in the stockwork zone extends from about 40 meters below seafloor (mbsf) to a depth of 95 mbsf. Siliceous wallrock breccias in the lower part of the stockwork grade abruptly into chloritized basalt breccias at the margins of the mineralized zone, and massive sulfides at the flanks of the deposit onlap relatively unaltered, partially hematized basalts. The pipe-like dimensions of the stockwork zone do not exceed the diameter of the sulfide mound. Comparisons with samples collected during earlier dive series confirm that the vent complexes at the surface of the mound are not representative of the bulk composition of the deposit. Dramatic vertical zonation of metals within the mound suggests that a long history of hydrothermal reworking has effectively stripped the constituents that are soluble at lower temperatures from the massive sulfides and concentrated them at the top of the deposit through a process of zone refining.

Jan 1, 1998

By Harry Vivian

This paper deals principally with the retreating method of mining as applied in the Calumet & Hecla Consolidated Copper Co.'s deep Conglomerate mine, pointing cut some of the difficulties encountered in deep mining and describing the particular methods used at Calumet to carry on a large-scale operation at great depth with a minimum hazard factor. The circular is one of a series dealing with mining methods and costs which is being prepared for and published by the United States Bureau of Mines. ACKNOWLEDGMENTS Acknowledgment is due to those officials and operating heads of the Calumet & Hecla Cc. whose years of familiarity with the conditions developing at the Conglomerate mine as great depth was attained have enabled them to contribute valuable information to the subject of deep-mining problems.

Jan 1, 1931

By S. F. Radtke

The properties and characteristics of lead and zinc have made these metals useful to man in many ways since the days of antiquity. Despite their long history of use, however, these metals have proved to be extremely resilient and responsive to modern needs. New alloys and compounds continue to be developed, adding to the growth of these metals. Consumption data is given for 1969 and compared with one and two decades ago. Trends in major markets also are cited and explained. Uses for lead and zinc which have come into prominence within the past few years are described and explained, with emphasis on the role played by the industry's cooperative research program. Current efforts in the research phase are discussed, with details given on major efforts for both metals, including new alloys, process developments, applications research, finishes, coating, paints and pigments, batteries and fundamental research. A forecast is given of promising new areas and a projection made on a longer term of new applications that may emerge from current research.

Jan 1, 1970

By R. L. King, J. Cervik, A. A. Campoli

The Bureau of Mines performed laboratory experiments to evaluate the triboelectric effect of particulate-laden gas streams on polyethylene pipe at various velocity, humidity, dust-size, and dust-load conditions. Charges in excess of 10 kV were produced on the outside and inside surfaces of laboratory pipe samples, when exposed to 40 pct relative humidity (RH) gas stream containing coal dust. However, no charges were produced in laboratory tests that duplicated the over 75 pct RH and dust-free gas streams found in working underground pipelines. Bare cop- per wire, which is wound around the polyethylene pipe in a 1-ft (31-cm) spacing and grounded, eliminated the charge on the outside surface of the pipe, but not on the inside of the pipe surface,

Jan 1, 1986

By G. Boehler

The purpose of this program is to demonstrate the feasibility and practicality of noise control for secondary and tertiary crushers in surface non-coal mining plants and mills. It is a part of the broad Bureau of Mines program to reduce noise in mines to levels mandated in the Coal Mine Health and Safety Act. Utilizing the results of previous contractual research efforts in which noise levels of secondary crushers had been measured, two noise enclosures were designed and evaluated for the REXNORD Symons 7-ft diameter secondary and tertiary crushers installed at the Jackson County Iron Company, in Black River Falls, Wisconsin. The first enclosure had a circular shape following closely that of the crusher and was built up entirely of quick-release panels which can be handled by the crusher operator alone. The second enclosure was octogonal in shape and can be rapidly removed, partially or totally using an overhead crane. Both enclosures fully satisfy the noise reduction objectives and permit daily and long-term maintenance of the crushers. Cost analyses show the cost of the enclosure to be less than 10 per cent of the cost of the crusher, the cost of the octagonal enclosure being estimated at only 60 percent of that of the circular one, e. g. $15,000 against $25,000. It is concluded that the octagonal enclosure best meets the needs of the Jackson County Mining Company and it is recommended that an experimental enclosure be built at the earliest possible time, as proof-of-concept.

Jan 1, 1977

By V. H. Gottschalk

Sponge iron is a product resulting from the reduction of an iron oxide below the temperature at which the product melts. Commercial grades usually contain 80 to 95 percent metallic iron, 2 to 5 percent unreduced iron oxide, and an amount of siliceous gangue material depending on the pur.ity of the are used for reduction. The reducing agent may be gaseous or solid, and a large variety of procedures have been proposed for bringing the reducing agent into reaction with the iron oxide. Of the proposed procedures, the one that has the distinction of having been in continuous commercial operation for the longest time, from 1911 to date, was developed at a ceramic plant in Hoeganaes, Sweden, and yields? a product that has an enviable reputation as furnace feed wherever special, high-quality steels are made.

Jan 1, 1948