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By C. E. Lesher

THE Disco* process for the production of low temperature coke and its immediate predecessor, the Wisner or Carbocite process have been described in the voluminous literature of low temperature carbonization.1 This paper will describe the development of the process from the first attempt at commercial operation by the American Gas and Electric Co. at Philo, Ohio, Yn the 1920's to the successful operation in 1949 by the Disco Co., a division of the Pittsburgh Consolidation Coal Co., of the 1000-ton per day Disco plant near Pittsburgh, see Figs. 1-2. In the 1924 coal industry depression following the hectic post World War I expansion, the northern Appalachian, unionized bituminous coal fields were affected first and foremost, and Western Pennsylvania as hard as any. Competitive market pressure was heaviest on the lower grades of steam coals, notably the from the Panhandle district where ash and sulphur are inherently higher than in the same Pittsburgh coal bed to the east along the rivers. The firm structure of Panhandle coal while favoring the prepared sizes, depressed the usefulness and value of the finer sizes. Panhandle slack and nut slack were marketed with difficulty at consistent, and at times considerable, loss. Many solutions were suggested, and the Pittsburgh Coal Co. investigated all. Lower delivered prices through lower mine costs and more advantageous freight rates were obvious goals, but equally obvious were the difficulties of self attainment of either in any substantial measure. Selling Btu's in pipes was abandoned as an idea after a thorough study of the economics of distribution of what was then, and is even now, the only developed continuous process of complete gasification of bituminous coal-producer gas. Although the coal company purchased huge blocks of electric power, it sold not a car of coal to the central power stations. Public utilities controlled the markets for electric current, and it was found that no matter at how low a cost current might be put on the bus bars by the coal company, distribution to its widely scattered coal mines made such an enterprise practically impossible. Consolidation of underground operations and a huge modernization program of mining operations in the 1920's were but preparation for the introduction of mechanical cleaning of the coal for market, particularly the smaller sizes of steam, gas, and by-

Jan 1, 1953

By C. E. Lesher

THE Disco* process for the production of low temperature coke and its immediate predecessor, the Wisner or Carbocite process have been described in the voluminous literature of low temperature carbonization.1 This paper will describe the development of the process from the first attempt at commercial operation by the American Gas and Electric Co. at Philo, Ohio, Yn the 1920's to the successful operation in 1949 by the Disco Co., a division of the Pittsburgh Consolidation Coal Co., of the 1000-ton per day Disco plant near Pittsburgh, see Figs. 1-2. In the 1924 coal industry depression following the hectic post World War I expansion, the northern Appalachian, unionized bituminous coal fields were affected first and foremost, and Western Pennsylvania as hard as any. Competitive market pressure was heaviest on the lower grades of steam coals, notably the from the Panhandle district where ash and sulphur are inherently higher than in the same Pittsburgh coal bed to the east along the rivers. The firm structure of Panhandle coal while favoring the prepared sizes, depressed the usefulness and value of the finer sizes. Panhandle slack and nut slack were marketed with difficulty at consistent, and at times considerable, loss. Many solutions were suggested, and the Pittsburgh Coal Co. investigated all. Lower delivered prices through lower mine costs and more advantageous freight rates were obvious goals, but equally obvious were the difficulties of self attainment of either in any substantial measure. Selling Btu's in pipes was abandoned as an idea after a thorough study of the economics of distribution of what was then, and is even now, the only developed continuous process of complete gasification of bituminous coal-producer gas. Although the coal company purchased huge blocks of electric power, it sold not a car of coal to the central power stations. Public utilities controlled the markets for electric current, and it was found that no matter at how low a cost current might be put on the bus bars by the coal company, distribution to its widely scattered coal mines made such an enterprise practically impossible. Consolidation of underground operations and a huge modernization program of mining operations in the 1920's were but preparation for the introduction of mechanical cleaning of the coal for market, particularly the smaller sizes of steam, gas, and by-

Jan 1, 1953

By M. G. Cheney

Careful estimates indicate that during 1942 new discoveries and extensions in West Central Texas added oil reserves slightly in excess of the eight million barrels produced. Drilling activity fell 40 per cent below 1941 and 82 per cent below the normal drilling activity of the late 1920's. Total production for the district continued its downward trend, now being less than % of the 42.7 million barrels peak in 1921. Rapid revival of activity is not probable under existing conditions, as costs of discovery, development and operations on the average probably now exceed current market price for the oil, the latter having remained constant since the spring of I941. Costs have advanced materially since the third quarter of 1941, when reports to the Tariff Commission indicated a margin of profit of 13.3 per barrel. Physical as well as economic conditions are holding back the amount of drilling in this district. The lenticular sands are not suited to 40-acre spacing regulations. There is no surplus of experienced oil-field labor. To reduce costs, much second-hand material is used for all except the deeper wells.. Price controls have retarded movement of used equipment by prescribing maximum prices that arc too low for the better grade materizl, thus making , owners reluctant to sell. On the other hand, buyers are unwilling to pay ceiling prices asked by sellers for poor material. Seventeen new oil fields and five new gas fields were found during 1942. Extensions and deeper 'drilling brought favorable results in eight older fields. The most significant new developments appear to have been in Coleman, Jones, Shackelford and Taylor Counties. A 5800-ft. completion in Wise County brought this county into the producing column for the first time. None of these new discoveries can he rated above one million barrel reserve on the basis of present development. Probably the most important development was discovery of a deeper pay (Gunsight lime) in the Wimberly field of Jones County, which shows promise of producing over an area of about 1000 acres. Jones and Shackelford Counties still lead the district in total annual production. Discovery of the Reddin pool, north central Taylor County, is credited to geochemical methods, making one success out of five or more wildcats based on such methods. Geophysical surveying increased decidedly during 1942 and returns from these studies are expected during coming years. Most of the wildcatting in the district is still based on surface and subsurface geological structural mapping, study of log data as to distribution of prospective producing reservoirs, and drilling in proximity to previous showings of oil and gas. Geological debate continues as to the proper correlation of the 100 to 300 ft. of gray lime that has produced more than 100 million barrels in the Parks, Brecken-ridge, Curry, Eliasville, Ibex, Pioneer and other important fields of this district. Fossils indicate that this limestone is younger than the Atoka beds of Oklahoma. On a structural basis most geologists include this formation with the Bend but a number of paleontologists believe it is more properly classified with the Strawn.

Jan 1, 1943

By M. G. Cheney

Careful estimates indicate that during 1942 new discoveries and extensions in West Central Texas added oil reserves slightly in excess of the eight million barrels produced. Drilling activity fell 40 per cent below 1941 and 82 per cent below the normal drilling activity of the late 1920's. Total production for the district continued its downward trend, now being less than % of the 42.7 million barrels peak in 1921. Rapid revival of activity is not probable under existing conditions, as costs of discovery, development and operations on the average probably now exceed current market price for the oil, the latter having remained constant since the spring of I941. Costs have advanced materially since the third quarter of 1941, when reports to the Tariff Commission indicated a margin of profit of 13.3 per barrel. Physical as well as economic conditions are holding back the amount of drilling in this district. The lenticular sands are not suited to 40-acre spacing regulations. There is no surplus of experienced oil-field labor. To reduce costs, much second-hand material is used for all except the deeper wells.. Price controls have retarded movement of used equipment by prescribing maximum prices that arc too low for the better grade materizl, thus making , owners reluctant to sell. On the other hand, buyers are unwilling to pay ceiling prices asked by sellers for poor material. Seventeen new oil fields and five new gas fields were found during 1942. Extensions and deeper 'drilling brought favorable results in eight older fields. The most significant new developments appear to have been in Coleman, Jones, Shackelford and Taylor Counties. A 5800-ft. completion in Wise County brought this county into the producing column for the first time. None of these new discoveries can he rated above one million barrel reserve on the basis of present development. Probably the most important development was discovery of a deeper pay (Gunsight lime) in the Wimberly field of Jones County, which shows promise of producing over an area of about 1000 acres. Jones and Shackelford Counties still lead the district in total annual production. Discovery of the Reddin pool, north central Taylor County, is credited to geochemical methods, making one success out of five or more wildcats based on such methods. Geophysical surveying increased decidedly during 1942 and returns from these studies are expected during coming years. Most of the wildcatting in the district is still based on surface and subsurface geological structural mapping, study of log data as to distribution of prospective producing reservoirs, and drilling in proximity to previous showings of oil and gas. Geological debate continues as to the proper correlation of the 100 to 300 ft. of gray lime that has produced more than 100 million barrels in the Parks, Brecken-ridge, Curry, Eliasville, Ibex, Pioneer and other important fields of this district. Fossils indicate that this limestone is younger than the Atoka beds of Oklahoma. On a structural basis most geologists include this formation with the Bend but a number of paleontologists believe it is more properly classified with the Strawn.

Jan 1, 1943

By A. C. Wallace

THE development of the natural resources of any district of any magnitude, inevitably gives rise to many problems off title, usually due to the greatly enhanced value of the land. The development of the mining industry in the Quapaw Agency has been no exception to this general rule. Our problems, how-ever, have not been many or particularly serious. The Quapaws were allotted and patents issued by the United States Government in 1895. These patents contained a restriction against alienation for a pe-riod of twenty-five years. The effect of the restric-tion was to prevent the Indian from selling, leasing, or in any way encumbering his land. The Govern-ment, in a paternalistic spirit, sought to teach the Indian thrift and industry and to insure him a place of residence. This is evidenced by the first Leasing Act passed by Congress, which permitted only incom-petents and those physically disabled to lease their land for either agricultural or mining purposes. The able-bodied Indian was denied the right to lease. It soon became apparent to the Government, how-ever, that this was a mistaken policy, and in 1897 a General Leasing Act was passed by Congress and it was under this act that the mining industry in the Quapaw Agency was developed. The act, reads as follows: "That the allottees of land within the limits of the Qua- paw Agency, Indian Territory, are hereby authorized to lease their lands, or any part thereof, for a term not ex-ceeding three years, for farming or grazing purposes, or ten years for mining or business purposes. And said al-lottees and their lessees and tenants shall have the right to employ such assistants, laborers, and help from time to time as they may deem necessary: Provided, That when-ever it shall be made to appear to the Secretary of the Interior that, by reason of age or disability, any such allottee cannot improve or manage his allotment properly and with benefit to himself, the same may be leased, in the discretion of the Secretary, upon such terms and conditions as shall be prescribed by him. All acts and parts of acts inconsistent with this are hereby repealed." It was the interpretation of this Act that gave rise to our first serious problems. It will be noted that the Act says that "allottees of land" within the limits of the Quapaw Agency are authorized to lease their land. Thus, the first question was presented by the use of the term "allottee," and the question was as to whether or not Congress intended to limit the Quapaw Indian to the leasing of his own allotment or did Congress mean that the term "allottee" was synonym-ous with "Indian" and intend to give the Indian a right to lease both his allotment and his inherited land and was an Indian without an allotment an "allottee" even though he was a member of the Qua-paw tribe and the owner of the Quapaw land by in-heritance, and not being an allottee, could he lease his inherited Quapaw land under the authority granted in this Act?

Jan 5, 1928

By C. A. Hartinagel

During 1941, the total production of crude oil in New York state was 5,185,000 bbl. This represents a small increase over the average for the past five years. From 1921, when the annual production of the state amounted to only 988,000 bbl., there was a regular annual increase in production (excepting one or two years) until the 5,000,000-bbl. mark was reached in 1937, After more than 20 years of oil recovery by flooding methods, it was generally believed, until a few months ago, that the rate of production was nearly at its peak and within a few years the fields would experience a gradual decline as the thicker sands became exhausted and the thinner ones could be worked only at increasing costs. As a result of the present emergency, however, unusual efforts are being made, in spite of higher costs of operation, to increase the output of Pennsylvania grade oil, to which the New York product belongs. Since most of any increased production would be obtained by flooding, and since floods travel slowly, no large increase in production can be expected for some months to come. During the first year, 10 or 15 per cent increase could be obtained, but maximum production, an increase of perhaps 40 per cent, could not be expected until some time during the second or third year. In the Allegany fields, which account for two thirds of the state's oil production, 1246 wells, including water-intake wells, were drilled during the year; 390 more than in the preceding year and 590 more than in 1939. It is evident that much of the best oil territory has already been developed. As producers move toward edge properties and thinner sands, returns will be smaller, whereas costs remain the same or, under war conditions, become higher. It is estimated that at least 60 million barrels of oil is in sight and will be produced from the thicker sands by present recovery methods. In the thinner sands and edge properties, some 35 million additional barrels can be produced at a profit only if prices become higher. In view of the fact that there is little hope of finding new oil pools in New York, one of the future problems of the oil producer will be to obtain adequate returns for increased production costs. The year started with a posted price of $2.15 per barrel of crude. There were five successive price increases until the high of the year was reached at $2.98 on Aug. 14. Eight days later the Office of Price Administration directed that the price be reduced to the June level of $2.75 a barrel, which remained in effect to the end of the year. With rising costs of operation, it is feared that many of the smaller properties cannot continue production unless the Federal price cut is revoked. During the year, Allegany Refiners Inc., a local enterprise founded in 1933, with plant at Bolivar, western Allegany County, increased its refining capacity from 1000 to 1500 bbl. daily. At the same time equipment was added to make the plant a complete lubricating-oil refinery, including facilities for the refining of wax into the finished product. Previous to the enlargement, it was necessary to sell the wax

Jan 1, 1942

ITEC Environmental Colorado has begun reprocessing the tailings from old mining sites near Boulder, CO. And if the technology behind ITEC's pilot project at Gold Hill proves successful and profitable, the company plans to launch similar reprocessing operations in other parts of the state. The pilot project is under the watchful eye of state and federal authorities. They hope the technology becomes the answer to cleaning up old mining sites throughout the West. Remining and environmental cleanup on an economic basis, then, are ITEC's hopes in one the most environmentally conscious counties in the state. Clean up the mine dump sites and recycle the land, for a profit. In June 1998, ITEC Mineral Inc., ITEC Environmental Colorado's Canadian parent, acquired the Gold [ ] Hill Mill facility in Boulder County. Included in the acquisition was 4.4 hm2 (11 acres) containing the Gold Hill Mill and 283 hm2 (700 acres) of additional properties adjacent to the facility. ITEC estimates that there are about 910 kt (1 million st) of dump rock in the area. That is enough to make the operation viable. ITEC will sell the metals recovered through its reprocessing operations. However, due to low metals prices, ITEC is not expecting to make much money on the recovery of precious and base metals. Instead, the company plans to resell the reclaimed land for residential and commercial development or open space. The Gold Hill Mill site is the first of 17 sites in Colorado that ITEC Mineral hopes to clean up and recycle the land. Most notable among the sites is the historic Central City/Black Hawk mining district, which ITEC believes holds considerable potential. The Gold Hill Mill is located 14 km (9 miles) west of the city of Boulder and less than a half mile from the small town of Gold Hill. The mill was. last operated in 1992. The operation was forced to close that year due to environmental and cash flow problems. Gold Hill is in the middle of a region with more than 32 Mt (35 million st) of mine tailings. Independent geologists have' established the average grade of the Gold Hill mine tailings to be 4.5 to 5.3 g/t (0.13 to 0.155 oz/st) of gold and 28 to 44 g/t (0.83 to 1.29 oz/st) of silver. According to these studies, the Gold Hill mine tailings are five times richer in precious metals than the tailings of the Norebec Manitou property in Canada that ITEC is also remining, reclaiming and restoring. Upon acquiring the mill, ITEC undertook a refurbishing program that included adding a second ball mill. This increased the Gold Hill Mill's capacity to 180 t/d (200 stpd). The operation employs 15 people. "The Gold Hill Mill site will demonstrate the efficiency of our integrated remining, reclaiming and restoration process," said Maxine Stewart, president of Denver, CO -based ITEC Environmental. "The abundance of similar mine sites in Colorado presents a number of opportunities to bring the benefits of the ITEC system to other communities around the state." Holly Huyck is technical advisor to the Clear Creek Watershed Advisory Group. She said: "ITEC is cleaning up an orphan mine site that otherwise would continue to contaminate the Boulder Creek watershed with acid and excess metals. This is a win-win situation: ITEC gains marketable minerals while it reclaims mined land and helps to improve the watershed."

Jan 1, 1998

By John J. McCabe

INTRODUCTION Over the years, Congress has written into the Internal Revenue Code various provisions aimed at lessening at least one financial burden faced by taxpayers in the mining industry - the federal income tax burden. These provisions include the election to deduct exploration expenses, the election to defer deduction of development expenses, and the percentage depletion deduction. Careful tax planning from the very beginning of a mining venture is essential in taking maximum advantage of these tax benefits. A major decision to be made is the choice of organizational structure. (For a more detailed discussion of this subject, see McCabe, John J., "Developing Structures for Investments in Mineral Property," New York University Institute on Federal Taxation, 42 NYU 24, 1984). One such structure is the use of multiple corporations, with mining activities conducted by one corporation and nonmining activities, such as manufacturing, financing and administration, conducted by the other corporation. This technique, which will be discussed in detail below, can be particularly advantageous in delaying recapture of previously deducted exploration expenses and in maximizing depletion deductions. TAX BENEFITS IN MINING Exploration Subject to certain restrictions discussed below, exploration expenditures (i.e., expenditures paid or incurred during the taxable year for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development state of the mine are deductible at the election of the taxpayer (Section 617(a)).* Were it not for this option, exploration expenditures would be required to be capitalized and recovered through depletion, after production begins. Exploration of a mineral deposit can be very costly and may not result in commercial production for some time. If the taxpayer has income to he offset by the deductions, a mining venture can usually be structured in such a way as to allow the offset of mining losses against the other income. With today's high interest rates, this election can be quite valuable in present value terms. Corporate and noncorporate taxpayers are subject to different restrictions on this tax benefit. Corporations may elect to deduct only 85 percent of eligible exploration expenditures (Section 291(b)). (The Tax Reform Act of 1984 reduced this to 80 percent effective for expenditures after December 31, 1984, in taxable years ending after such date). The remaining 15 percent (20 percent after December 31, 1984) is capitalized and recovered at the same rate as five-year ACRS property (Section 291(b)). Individual taxpayers are not subject to this 85 percent rule; however, any amount deducted in excess of ten-year straightline amortization is a tax preference item for individuals (Section 57(a)(5)). Individuals may avoid the tax preference by electing to capitalize exploration expenditures and amortize them over ten years (Section 58(i)). In order to prevent the taxpayer from, in effect, converting ordinary income into capital gain by selling property that has given rise to exploration expense deductions, the Code requires recapture of such deductions upon the occurrence of certain events (Section 617): 1. Upon disposition of the property, adjusted exploration expenditures are recaptured to the extent of gain realized on the disposition (Section 617(d)). 2. If the property is leased, the lessor is disallowed any depletion deduction until his adjusted exploration expenditures have been recaptured in the form of foregone depletion deductions (Section 617(c)).

Jan 1, 1985

By Don S. McCoy, W. Joseoph Schlitt, Donald B. Swanson

Introduction Contract miners have long played an important role in the minerals industry. Historically, these were individuals who worked as underground miners and were paid by the ton or the day. These hardy types still ply their trade in the industry. However, today the term "contract miner" generally refers to an independent contractor who supplies the people and equipment needed to conduct surface mining operations for an owner or lease holder. At one time or another, contract miners have probably handled virtually every mineral commodity from sand, gravel, and stone quarrying to mining uranium and precious metal ores. In today's market, though, contract mining appears to be concentrated in just a few areas. These include precious metal mines, various types of solid fuel operations, and reclamation of abandoned mines. This article covers market areas, contract mining organizations and services, and their advantages and disadvantages. Gold and silver mines Although exact figures are not available, contract mining represents a significant element in the precious metals segment of US mining. For gold and silver, the growth in contract mining appears to be paralleling the overall growth in mining activity itself. Nevada is the largest gold producer in the US. The latest available data (1985) on open pit gold/ silver mines is summarized in Table 1 (Nevada Division of Mine Inspection, 1986). These figures show that contractors mined nearly half of the ore in 1985. Total tonnage mined, of course, was much higher for both owners and contractors. Assuming an average stripping ratio of 2.5 to 1, the total daily mining rate for the contractors was more than 145 kt (160,000 st). This translates into a contract mining rate of about 36 Mt/a (40 million stpy) based on 250 operating days a year. This approximate 50-50 split between owner and contractor also appears to hold for the future. Metals Economics Group (1987) published a survey of 51 short-range and 54 long-range precious metal projects being considered throughout the US. Contacts with owners, requests for proposals, and past corporate philosophies all suggest that about 55% of the open pit operations scheduled for the near-term will be contract mined. This represents an estimated 26 kt/d (28.5 stpd) of ore. A similar assessment of the long-term projects indicates that about 12 kt/d (13,000 stpd), or just under 50% of the open pit tonnage will be contract mined. There are several reasons why gold and silver represent such an attractive opportunity for contract miners. One is that many properties are owned or leased by individuals or partnerships that are essentially entrepreneurial. Many of these owners or lease holders have minimal mining experience. They must therefore either rely on contract mining organizations, sell an interest in the project to another mining company that will become the operator, or hire an experienced management team. For about the same reason, junior mining companies also represent good prospects for contracting. This is because most junior companies focus on exploration. They would prefer to spend their generally limited funds on drilling programs. Thus, they tend to minimize additional capital requirements by using contract miners or farming out the property to another mining company. Another good reason for using contract miners is the size of the deposit. Many properties are so small that their reserves will not support the capital expenditures

Jan 12, 1987

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 C. A. Hartinagel

During 1941, the total production of crude oil in New York state was 5,185,000 bbl. This represents a small increase over the average for the past five years. From 1921, when the annual production of the state amounted to only 988,000 bbl., there was a regular annual increase in production (excepting one or two years) until the 5,000,000-bbl. mark was reached in 1937, After more than 20 years of oil recovery by flooding methods, it was generally believed, until a few months ago, that the rate of production was nearly at its peak and within a few years the fields would experience a gradual decline as the thicker sands became exhausted and the thinner ones could be worked only at increasing costs. As a result of the present emergency, however, unusual efforts are being made, in spite of higher costs of operation, to increase the output of Pennsylvania grade oil, to which the New York product belongs. Since most of any increased production would be obtained by flooding, and since floods travel slowly, no large increase in production can be expected for some months to come. During the first year, 10 or 15 per cent increase could be obtained, but maximum production, an increase of perhaps 40 per cent, could not be expected until some time during the second or third year. In the Allegany fields, which account for two thirds of the state's oil production, 1246 wells, including water-intake wells, were drilled during the year; 390 more than in the preceding year and 590 more than in 1939. It is evident that much of the best oil territory has already been developed. As producers move toward edge properties and thinner sands, returns will be smaller, whereas costs remain the same or, under war conditions, become higher. It is estimated that at least 60 million barrels of oil is in sight and will be produced from the thicker sands by present recovery methods. In the thinner sands and edge properties, some 35 million additional barrels can be produced at a profit only if prices become higher. In view of the fact that there is little hope of finding new oil pools in New York, one of the future problems of the oil producer will be to obtain adequate returns for increased production costs. The year started with a posted price of $2.15 per barrel of crude. There were five successive price increases until the high of the year was reached at $2.98 on Aug. 14. Eight days later the Office of Price Administration directed that the price be reduced to the June level of $2.75 a barrel, which remained in effect to the end of the year. With rising costs of operation, it is feared that many of the smaller properties cannot continue production unless the Federal price cut is revoked. During the year, Allegany Refiners Inc., a local enterprise founded in 1933, with plant at Bolivar, western Allegany County, increased its refining capacity from 1000 to 1500 bbl. daily. At the same time equipment was added to make the plant a complete lubricating-oil refinery, including facilities for the refining of wax into the finished product. Previous to the enlargement, it was necessary to sell the wax

Jan 1, 1942

By David S. Bolin, Bruce Kennedy, Leigh A. Readdy, Graham Mathieson

INTRODUCTION The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore reserve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion presents an overview of somewhat more sophisticated methods of geostatistics which have been developed within recent Years. Geostatistical methods frequently provide the best ore re- serve estimates for many deposits. However, a digital computer is required for such geostatistically derived estimates due to the number and complexity of the cornputations involved. For many properties the classical nongeostatistical methods are adequate, particularly in the early exploration stages. In fact, it is the author's contention that even at those properties where the geostatistical approach is employed for reserve estimation, the geological and engineering staffs should prepare an estimate by traditional means. This provides an internal audit for the reserves and at the same time requires a continuing close appraisal of geologic problems that influence the presently known geostatistically estimated reserves and production at the mine.

Jan 1, 1982

By William H. Shockley

There was an extensive mining and industrial exploitation of Russia, about 20 years ago, by Belgian, French and British capitalists; but the results were discouraging. It is said that the Belgian and French public together lost approximately $400,000,000, chiefly in the coal and iron industry of southern Russia. This loss is largely accounted for by the fact that most of the companies were formed, as usual in " boom" times, to sell stock; and that thorough investigations were not made. I11 1906, renewed interest was taken in Russian mines, especially in those of gold and copper, and a considerable literature is growing on this subject; but as yet I have seen no account of one of the large Russian mining estates. The following notes on such property, where the conditions are so different from those in the mining regions of the United States, should be of interest: This inadequate and probably somewhat inaccurate account is made up, partly from my own notes made on the ground, in the summers of 1904 and 1905, and partly from a volume on the geology and resources of the estate issued several years ago, containing surface- and mine-maps, and from a pamphlet published in 1904, giving a general account of the condition and prospects of the property. This pamphlet includes a report made in 1899 by Arthur L. Pearse, a member of this Institute. Both these books are in Russian, and were prepared by the Bogoslovsk Mining Co., which owns and operates the property. Articles in many other languages have appeared dealing with various matters connected with the estate; but I know of no other general account of it. In numerous books and articles on the Urals and Siberia, however, localities are described in which somewhat similar conditions prevail. Recent papers by

Jan 1, 1909

Atlas Copco is one of the worldÆs leading providers of industrial productivity solutions (Atlas Copco, 2009). Furthermore, the company spans 160 markets and held 34 000 employees at the end of 2008. The company is organised under three ætechniquesÆ whereby the Construction and Mining TechniqueÆs business division is located within +rebro, Sweden. This paper is aimed at briefly facilitating information on how the company and more specifically, the Construction and Mining Technique is run. Also, by sharing my experiences, this paper is intended to encourage and motivate students currently studying for a degree relevant to the minerals industry, to apply for this extremely beneficial scholarship. Through a number of presentations relating to the various divisions, products and aftermarket services of the company, I came to realise that Atlas Copco extends beyond simply selling equipment suitable for the mining and civil industries. This tour through Sweden also contained highlights of visiting the Underground Rock Excavation factory, Surface Drilling Equipment factory and Secoroc divisions. I was also fortunate enough to participate in a tour of the LKAB mine in Kiruna. In addition, time was allocated to less industry related activities, and I was able to go dog sledging, sip vodka cocktails out of ice glasses at the Ice Hotel and enjoy traditional Swedish foods of moose and reindeer. Most important and memorable to me; however, was the ability for employees of Atlas Copco to speak of the company and their products with such passion and enthusiasm, which truly made this a motivational and unforgettable experience.

Jan 1, 2009

By Douglas A. Karvonen

INTRODUCTION Although the economy in the Province of Saskatchewan has historically been agriculturally oriented, a major source of wealth has been realized through natural resources such as petroleum and natural gas, coal and uranium and since the 1960's - potash. Potash or potassium chloride, in the form in which it is presently produced in Saskatchewan, is used primarily as fertilizer, a source of potassium, one of three essential elements required for healthy plant growth, with about 5% of production sold to the chemical industry for use in such products as soap and liquid detergent, glass and ceramics, textiles and some pharmaceuticals. Saskatchewan is estimated to have approximately 40% of known world potash reserves and its ten active mines account for some 25% of annual world production. POTASH CORPORATION OF SASKATCHEWAN In an effort to guarantee a fair and lasting economic benefit to the Province of Saskatchewan, the Potash Corporation of Saskatchewan (PCS) was created on February 4, 1975 through an Order-in-Council under the Crown Corporation's Act and later on April 1, 1976, the Potash Corporation Act provided for its continuation. PCS was given the mandate to acquire ownership of a significant portion of the potash mining capacity in Saskatchewan and to establish an organization capable of operating the facilities, marketing the product, and conducting all of the other activities necessary for a successful corporation competing in the world potash industry. The corporation is the largest potash producing and selling organization in the Western World - or third largest in the world. (See also Figure 1). PCS through its wholly-owned subsidiary, PCS Mining, has acquired a whole or partial interest in five geographically distinct producing properties or divisions, representing today more than 40% of Saskatchewan's potash producing capacity. The acquisition of each division was followed by a program designed to exploit and maximize the particular opportunities at each minesite for increased production. To that end, PCS Mining has taken an active lead in expanding to meet future demand and has implemented expansion programs at all properties except for its Esterhazy Division where it has a long-term processing agreement with International Minerals & Chemical Corporation (Canada) Limited. Through its wholly-owned subsidiaries, PCS Mining, PCS Sales and PCS Transport, this provincial crown corporation has the ability to operate as a producer and marketer of Saskatchewan's potash. In certain instances PCS, the parent company, assists in the financing of various projects undertaken by the subsidiaries and in other cases the subsidiary involved arranges its own financing. POTASH RESERVES As a background to the specific issue of financing, it is helpful to describe briefly the nature of the deposit which supports the industry - our collateral, if you like. The potash beds underlying Saskatchewan are sedimentary rock deposits formed by the gradual evaporation of an inland sea during the Middle Devonian period roughly 400 million years ago. Now known as the Prairie Evaporite, this formation stretches from North Dakota and Northeast Montana through Southern Saskatchewan into North-Central Alberta. These beds lie at mining depths ranging from 950 - 1000m (3,000 ft) below the surface, where conventional mining methods can be used, and to 1,650m (5,000 ft), where solution mining must be

Jan 1, 1985

By Olaf N. Rove

YEAR 1951 has been bright for the mining geologist. He has arrived after struggling for a generation or two to sell his wares through service to the operator, the mine superintendent, and the manager. But as he establishes himself on the operating front, he is faced with even greater challenges; namely, the development of basic geologic principles governing ore-forming processes and the occurrence and distribution of mineral deposits. These principles are needed to guide his ever-widening search into new areas. He must now stimulate the interest, confidence, and imagination of the mining executive and layman in fostering the research essential to expand rapidly the basic science of geology and its more specific applications to the mining industry. The hallowed time-tested tools of the prospector and the industry are no longer adequate. New basic data, principles, and ideas are needed to guide industry's exploration. The entry of Government into exploration, by lending money to prospectors and operating companies to partly finance exploration, is one of the major events of the year. This was one of the activities for which the Defense Minerals Administration was established in the Department of the Interior. DMA was staffed largely with men from industry, but the Bureau of Mines and the Geological Survey have acted as its technical advisors and have provided its field staff. Since the start of this work in May 1951 to November 19, 1951, the DMA has approved 208 exploration projects while denying 318 others. The contracts involve about eleven million dollars worth of exploration, of which Government's share is about sixty percent. A few contractors have already made discoveries and are into production to repay their loans; others have completed their projects without making a discovery. In November, the DMA was split into two successor units. The Defense Minerals Exploration Administration was set up in the Interior Department to carry out the exploration program. The Defense Materials Procurement Agency was organized as a separate agency to carry out the other functions of the former DMA, as well as general strategic materials procurement. The strategic materials group of the Economic Cooperation Administration was transferred to DMPA in order to centralize the procurement from foreign sources into one agency, although the authority and scope of activities of this group have not been announced as of the middle of December. The DMA-DMEA-DMPA programs are making large demands upon the technical manpower of the Geological Survey and Bureau of Mines. It is still too early to evaluate with confidence the productiveness of this diversion so far as the immediate and long-range effects are concerned. Many of the individuals associated with these programs, as well as others in the industry, are convinced that from a long-range national viewpoint, the regular programs of both the Survey and the Bureau equal or even exceed in importance the current emergency mineral activities of these two agencies. Uranium Uranium continued to be the glamour-girl metal of the mineral industry, and at the request of the Atomic Energy Commission uranium and thorium were included in the DMA exploration program. Industry's intensive prospecting and mining activities in 1950 were further expanded early in 1951 when the Atomic Energy Commission announced an increased price schedule and a new bonus payment

Jan 1, 1952

By Robert L. Bates

Definition An industrial mineral, says the Glossary of Geology, is "any rock, mineral, or other naturally occurring substance of economic value, exclusive of metallic ores, mineral fuels, and gemstones; one of the nonmetallics." Probably most geologists and engineers would accept this simple and straightforward definition, at least as a general statement. On analysis, however, certain anomalies crop up. For example, it may be considered arbitrary to include industrial diamond and corundum and to exclude their precious varieties, gem diamond and sapphire. So the present volume has a section on gems and gem materials, in spite of the definition. Another problem arises when we try to define precisely what is metallic and what is nonmetallic. Bauxite and ilmenite certainly qualify as metallic ores, but both are also raw materials of important nonmetallic substances; hence they are included in the book, A third anomaly is that, by common consent of geologists, engineers, mineral economists, and others concerned, the term industrial minerals may include not only rocks and minerals but also certain manufactured products like cement and lime, and even mixed groups of natural and artificial products, such as abrasives and refractories. Thus the central realm of the industrial minerals is clear enough, but its boundaries tend to be indefinable. Since a definition that allowed for every irregularity in the outer fringes would be excessively unwieldy, the one quoted above may be considered satisfactory. The expression industrial minerals is commonly equated with nonmetallics, and with the somewhat more precise phrase industrial minerals and rocks as in the title of this book. Characteristics of the Field The industrial minerals as broadly interpreted are a highly diverse group of materials; indeed, we may say paradoxically that diversity is about all they have in common. At one end of the spectrum are ordinary earth materials such as gravel and crushed stone, with a value of perhaps $3 per st; at the opposite end are industrial diamonds, which sell (by the carat) at the rate of roughly $18,000,000 per st. Neither the metals nor the fuels, and few if any categories of manufactured products, include items that differ in value by more than six orders of magnitude. Most gravel and stone are of no value unless close to a market; diamonds and other exotic substances possess such unique and desirable properties that their occurrence in remote corners of the earth is no deterrent to their use. The broad range of industrial minerals falls between these extremes of unit value and place value. The industrial minerals penetrate the entire fabric of modern industrialized society, from such fundamental operations as drilling for oil and smelting iron ore to the manufacture of virtually the whole array of consumer products. There is no industrial-minerals industry; there are many industries. The simple term field is convenient as an all-inclusive expression. An industry is considered to belong in the industrial-minerals field if its operations consist of extraction and processing, but not manufacturing. Thus the mining and beneficiation of feldspar is a mineral industry, but the manufacture of ceramic products is not. In the cement and lime industries, processing merges into manufacture, and the line is less distinct. It disappears altogether in a plant that extracts salt as artificial brines, and makes sodium and chlorine chemicals, all under the same roof. An aspect of some industrial minerals that differentiates them from the metals is that their physical properties carry over into ultimate use of the product. Such minerals as mica, asbes-

Jan 1, 1983

By M. P. Adamson, Bryson D. Trexler, R. V. Ramani, Mark L. Koenig, V. Rajaram, Alan Burton, C. S. Crocker, Kim. Y. C., A. G. Law, William C. Larson

Another record year vas experienced by the mining industry as the value of nonfuel minerals production soared to $23.5 billion-up 15% from the previous year. Based on preliminary estimates by the Bureau of Mines, US mine output was the basis for about $225 billion worth of minerals-derived materials. Metal mining accounted for $8.5 billion, or 36%, of the total. Of the 22 metals produced in the US, 11 showed quantity increases, while 16 had value increases. Business Week's survey of 1200 companies (Mar. 17, 1980, pg. 81) revealed that 21 metals and mining companies had sales increases of 30% with earnings up 104%. Higher prices and increased demand for metals were primary factors behind the improved performance. The steel sector reported a 30% decrease in earnings for the year, but the slump was primarily the result of a $383-million loss for US Steel coupled with a 17% decrease in earnings at Inland Steel. Other firms did well in 1979, with earnings up 279% at Interlake and 269% at Kaiser Steel. Major obstacles facing the steel industry included substantial tonnages of dumped and subsidized imports, environmental expenditures, runaway inflation, and price controls. Turning to nonmetallic production, of the 49 commodities reported by the US Bureau of Mines, 29 had higher outputs and 39 had increased values. While production statistics may seem encouraging, government regulations continued to stifle industry efforts to develop needed new capacity. A case in point may be publication of the Environmental Protection Agency's simplified procedure to streamline five permit programs by consolidating them into one. The five included: hazardous waste management, national pollution discharge elimination, dredge and fill, underground injection control, and prevention of significant deterioration. The new procedure, published by EPA in the Federal Register, took 149 pages. AMC's J.A. Overton, Jr., noted that (MCJ, Nov. 1979, p. 39) to visually depict the complexity of the proposed regulations, Sell Oil Co. developed a flow chart mapping a path through one section. The chart required 10 days to map and two weeks for two draftsmen, using computerized drafting techniques, to plot the results. Overton said, "Perhaps the greatest service EPA has performed in preparing its proposal is to demonstrate again that federal regulations have become a complexity compounded by confu¬sion that culminates in a conundrum." While regulatory agencies promulgate new regulations, the lack of a cohesive government minerals policy remained a matter of significant importance to mine management. A non-fuel minerals study to provide input to the Administration for a national minerals policy program was a dismal shock, according to Rep. Jim D. Santini (D-NV). He said the first phase of the program, which was to identify industry problems, failed to come to grips with the hard decisions necessary regarding these problems, their impact, and their interrelationship. Santini said the report failed to acknowledge government's role in the process and absolved the government of any adverse influence on the domestic minerals industry. In response to the phase one report, eight senior mining executives testified before Santini's House Subcommittee on Mines and Mining concerning mineral supply, access to foreign sources, environmental protection, conservation and recycling, national security, and capital formation. By year's end, Rep. Santini promised to prepare a hard-hitting committee report on problems affecting the non-fuel minerals industry to provide a better base for subsequent policy recommendations (MCJ, Jan. 1980, p. 34). On the technological front, interest again centered on mechanization, automation, and scaleup to improve and expand production. Computer use increased for calculation of ore reserves, mine planning, operations research, and mineral processing.

Jan 5, 1980

By J. D. Morgan

Demand for nonfuel minerals depends in large measure on economic activity, which rose in each quarter of 1985. However, despite 1.7 million new housing starts and a 7% increase in motor vehicle production, many domestic metal mining operations experienced continued difficulties as a result of import competition, greater use of newer engineered materials, emphasis on multi-unit housing, and downsizing of motor vehicles. Recognizing the continued difficulties of the domestic metal mining industry, many corporations made major efforts to retrench and rationalize - selling, closing, or spinning off less profitable operations, renegotiating labor contracts, and inviting increased participation by foreign firms. About 15% of US energy was imported in 1985. This included $52 billion worth of crude oil and refined products, adding significantly to the overall merchandise trade deficit of $149 billion. With the exception of a few large-bulk, low-value raw materials, most minerals move relatively freely in world trade. The strong dollar encouraged imports and made exporting more difficult US nonfuel minerals trade deficit totalled $17 billion. The US continued to rely on imports for many important strategic minerals in 1985 (see accompanying Table). Increased pressures for protection included major mineral products such as steel, ferroalloys, and copper. But President Reagan, in his Feb. 1986 "Economic Report to the Congress" stated: "Our international trade policy rests firmly on the foundation of free and open markets." He also stressed the need for fair trade and more open markets internationally. The National Critical Materials Council, created by law in the latter part of 1984, was activated in the latter part of 1985. Its first public hearing was held in January 1986. The Council is to review the nation's materials posture and advise the President on such matters. Compared with 1984, the value of US raw nonfuel mineral output rose 2%, to $24 billion. This supported the production of $244 billion worth of processed materials of mineral origin. Raw steel production - a major indicator of both material use and mineral production - fell 4% to 81 Mt (89 million st). Consequently, domestic iron ore production fell to 49 Mt (55 million st), about 97% pelletized. Iron ore imports fell 7% to 16 Mt (18 million st). Raw steelmaking capacity fell 4% to 117 Mt (129 million st). Pacts with 16 leading steel exporting nations have been negotiated in an effort to reduce import penetration of the domestic market. Domestic producers of bulk ferroalloys of chromium, manganese, and silicon operated at about 40% capacity. The US mined no manganese or chromium. Only a small quantity of ferronickel was produced from domestic laterite mining in Oregon. Molybdenum production increased slightly to 49 kt (54,000 st). Mine shipments of tungsten, another mineral tied to steel production, also fell slightly to 1.1 kt (1200 st) of contained metal. Even the domestic aluminum smelting industry suffered reverses as high stocks and low prices reduced production 16% to 3.5 Mt (3.8 million st). Similarly, imports of bauxite fell 7% and alumina 10%. Production of magnesium metal fell 6% to 136 kt (150,000 st), while titanium metal production remained unchanged at 22 kt (24,000 st). Copper mine production was unchanged at 1.1 Mt (1.2 million st). Copper refinery production fell slightly to 1.1 Mt (1.2 million st). Lead mine production rose 24% to 400 kt (440,000 st). Zinc mine output was down 10%, to 225 kt (250,000 st). Refined lead production increased 28%, to 510 kt (560,000 st). Primary slab zinc production fell 5% to 240 kt (260,000 st).

Jan 5, 1986

Applications of helium in aerostatics, cryogenics, space, and undersea work are described in papers from the Helium Applications Symposium. Specific subjects include investigations of X-ray sources by means of balloon-borne instruments, meteorological soundings by balloons, powered lighter-than-air flight, tethered balloons, refrigeration techniques, large superconductive magnets, electronic devices, superconducting transmission lines, high-precision thermal conductivity analysis, He3-He4 dilution refrigerators, uses of helium in the atomic energy program, helium-cooled nuclear reactors, power- plant applications for high-temperature gas-cooled reactors, helium welding of stainless steel tubing and pipe, development of helium-shielded arc welding, helium as a diluent in spacecraft atmospheres, helium utilization in the Saturn-Apollo program, and helium utilization in diving environments. Papers from the Helium Centennial Symposium at the national meeting of the American Chemical Society cover the history of the discovery of helium, the history of its development by the Bureau of Mines from a laboratory curiosity to an important item of commerce, the source of helium in natural gases, the world of liquid helium, and liquid helium-3.

Jan 1, 1969