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The Yabulu refinery of Queensland Nickel Pty Lld near Townsville now imports more than three million wet tonnes per year of nickel laterite ore from New Caledonia and Indonesia, making it the largest importer of any commodity in Australia. The project has illustrated that importing untreated bulk ore and re-exporting high value products makes good economic sense for the company and the nation.The economics of this exercise were considerably enhanced in 1994 by changing the project's principal product from nickel-oxide sinter to refined high-purity nickel metal. It is one of the few operations in the world where nickel ore is transformed to nickel metal at a single site.Several novel technological processes were developed at Yabulu and incorporated into the refinery to allow this product transition to occur. By utilising internally developed technology the new processes were installed at a capital cost of less than $10 million. It is unique for a large nickel producer to change completely the quality of its entire product range many years after the plant was constructed and considerable attention to marketing the new products has been required.The changes have meant that the project is no longer limited to selling lower-value oxide sinter to a relatively small number of large stainless steel mills. In the past year sales of the new high purity nickel metal products have expanded to include a broad range of international customers in the special alloy, foundry and chemical industries.

Jan 1, 1995

By John V. Beall

Copper production in the. United States in 1972 amounted to 1,658,000 tons according to the USBM. This figure is up over 1971 but falls below 1970 production of 1,719,101 tons. This report is essentially about the status of copper mining operations in the U.S. and is an update and expansion of the report "Southwest Copper-A Position Survey" published in [A=], October 1965. At that time, the trend was toward using larger equipment to mine lower grade ore and toward the expansion of dump leaching practice. That trend continues today but, it is overlain by intensive activity to comply with existing environ¬mental legislation and uncertainty over proposed revisions of venerable laws governing mining. In the U.S. today there is, practically speaking, no excess smelting capacity so that expansion of copper production through the startup of new mines is inhibited. Owners of a large undeveloped orebody would have to decide before going into production whether to sell the concentrates offshore, which has many problems, whether to try one of several unproved chemical processes for producing refined metal from concentrates or embarking on the construction of a traditional pyrometallurgical plant in the face of considerable uncertainty over the pollution standards that eventually must be met. The situation is such that not only is the present rate of U.S. copper production threatened but the ability to meet projected increased demand in the years ahead may have been severely retarded.

Jan 4, 1973

By C. S. Simons

The conversion of a successful research and development effort into a money-making business venture requires careful attention. Problems of a business nature, such as market size, product selling price, raw materials and fuel availability and cost, financing factors, local and national taxes, licensing arrangements, etc. must, of course, be considered and resolved. In addition, the technical questions involving the scale-up of pilot plant or laboratory results to the full-scale plant must be resolved in order to avoid the financial disaster that attends a major delay in the startup of a commercial facility. The very difficult and demanding task of providing the interface between the research laboratory and the profitable metals processing plant will be discussed with examples from the author's extensive experience. After I had accepted the invitation to present a paper on the above subject of the interface between R & D and production operations, I began to give some serious thought to the subject. The program chairman had told me, in conveying the invitation, that what the committee had in mind was a discussion of positive and negative, forces in that interface, based on "gray-hair" experience. I am, therefore, at least physically qualified! My first reaction was one of mild shock; after over twenty years in the direct pursuit of the conversion of research and development findings into plant operations, I had never tried to sort out my , experience into a formal system of DO'S and DON'TS for the edification of posterity. However, after a little further reflection, I realized that this carries no stigma. No one has been able to formulate such a set of rules, and it is not really very likely to be done. Particularly if they are to be practical. I shall therefore settle for a more modest goal; I will simply discuss the factors that I have come to believe are the most critical in insuring that re- search and development results are converted into successful operation.

Jan 1, 1973

I am honoured and very pleased to have been given the opportunity this evening to say a few words of thanks not only on behalf of all the guests but especially for the delegates and accompanying persons attending the 13th Congress of the Council of Mining and Metallurgical Institutions. Firstly, I would like to congratulate Sir Hamilton Whyte,KCMG for his most interesting address. In his far ranging talk, when he showed knowledge of widely diverse subjects, I had a brief fear that he was going to be talking about the details of support methods in deep level mines, or how to avoid flotation problems in multi-metal mines. Although he did not go that far, he touched on subjects which have arisen this week - long term planning and secure supply of minerals at acceptable prices. The dire predictions of the Club of Rome have been debunked with a far more elastic supply of minerals having been proved. Combined with the importance of a falling birthrate in some parts of the world, this will lead to many changes in the future, when hopefully governments will take the long term view rather than look at the next budget or the next election. Maybe some of them are not too lazy to do this for all of us. However as a fellow Ukranian, I feel that he might have been called something different if he had been in Australia. Sir Hamilton, thank you for your talk. Once upon a time - and this is not a fairy story - there was a cobbler who had two sons; one very bright who became a professor of mathematics; the other, dim, who became a millionaire shoemaker. Asked for the secret of his success, the millionaire attributed it to a vital piece of economics which his father had imparted, "Be content with small margins on a large turnover." "So", said the millionaire, "I make my shoes for $2 a pair and sell them for $5. I am very happy with the three per cent profit."

Jan 1, 1986

"In 1989, improved milling and recoveries resulted in a record production of 7 722 200 Ib Nb2P5 at the Niobec Mine. At the beginning of 1990, proven and probable reserves stood at 11 952 000 tons grading 0.65% Nb205. This year, the world steel market has slowed and as a result, niobium consumption is down. Consequently, production at the mine dropped 14% for the second quarter.IntroductionThe Niobec Mine is located approximately nine miles northwest of Chicoutimi, Quebec, (Fig. I). After ten years of production, the Niobec Mine is the only operating niobium mine in North America and the second largest producer of niobium in the world after Brazil.The Niobec Mine is a joint venture held equally by Teck Corporation and Carnbior. Teck Corporation operates the mine while Cambior is responsible for marketing and selling the niobium pentoxide concentrate (Nb2P5).The deposit was discovered in 1964 following an airborne radiometric survey in search of uranium. However, mining of the deposit did not begin until 1976. The initial production capacity of 1500 tons per day was increased several times to the present capacity of 2450 tons . The deposit is considered as an ample source of pyrochlore concentrate for at least 15 years at the present production rate.Niobium, also known as columbium, is a greyish-white metal used primarily as an alloy in various steels and other metals. The use of niobium in alloys heightens tensile strength and improves corrosion resistance while at the same time reducing the weight of the alloy. Niobium is also used in the fabrication of steel for the aerospace, automobile, and oil and gas pipeline industries. Although substitutes for niobium exist, their use often results in diminished performance and net cost increases."

Jan 1, 1990

After the war that was nearing an end In early 1945, regular consulting work for Bralorne, the Bradleys, Pennsalt Chemical Co., and a directorship and occasional consulting for Homestake Mining Co. made it almost certain that in spite of my 61 years I would have enough work to feed my family. But this routine work would not provide enough income to lay up funds for the inevitable future when I could no longer do arduous work. And it would not give me the adventure that had first lured me into mining. Therefore I was greatly relieved as well as pleased when, in the 18 months from April 1945 to November 1946, I was asked to make three of the most adventurous as well as profitable examinations that ever came my way. Pati[n]o Mines, Bolivia The first of the exciting jobs was an examination of the Pati[n]o tin mines in Bolivia. After I had unsuccessfully tried to induce Anaconda to purchase these mines In 1915, the World War I crisis that had forced the half-Indian accountant to try to sell the mines had come to an end. The European market for tin improved dramatically, and "Don Simon" was able to borrow money for expenses while the concentrates were still In Bolivia. He took advantage of the favorable conditions by buying adjacent properties and increasing development work until his Bolivian tin mines were the greatest in the world. And his daughter had marled the French Count de Boisrouvain and was cutting a swath In high International society. Pati[n]o wanted to get rid of the drudgery of running a complicated mining Industry in a remote area In Bolivia when the fleshpots of Paris were much more seductive. An added incentive was the fact that his miners had become unruly and had even threatened his 11fe.

Jan 1, 1976

By Robert B. Parsons

"During hard times, the focus on tax issues makes a slight change in direction. Mining companies contemplate the tax treatment of transactions and circumstances which are the product of a difficult financial environment. Some of these issues are discussed in this month's edition of Tax Notes.Every industrial sector in Canada is undergoing a major restructuring of some form, and the mining industry is not an exception. The longest recession since the Great Depression continues to affect the economy. Mining firms seek to bring their debt/equity ratios into line, and try to replenish depleted retained earnings by selling assets. This month, Tax Notes briefly examines some of the tax issues which are generally encountered during the course of such a restructuring process.Debt SettlementOne question which commonly arises during hard times concerns the tax treatment of a "" gain "" realized by a debtor on the settlement of a debt. Consider, for example, a simple situation where a creditor wants to protect itself from further losses, and makes a deal with the mining company to accept a cash payment of $8 million in full settlement of a $10 million loan. In financial terms, the debtor has made a $2 million gain on the settlement of the debt. What is the tax treatment of that gain?The Income Tax Act (the Act) contains provisions in section 80 of the Act and in section 5400 of the Income Tax Regulations which deal specifically with this question. First of all, it is noted that the $2 million gain is not brought directly into income for tax purposes. However, as indicated below, the gain could affect the debtor's income indirectly to the extent that certain of the debtor's tax pools must be reduced by the amount of the gain."

Jan 1, 1993

By E. E. Bach

The administration of industrial organization today embraces more than the cost of production and selling prices. Competition is deeper seated than mechanical devices, overhead charges, and a shrewd manipulation of the markets. Despite the " down-to-the-minute " equipment and the "last word in organization," it is quite evident that "capacity production" will be an unknown quantity until the workman is considered as a producer, in relation to his home, as he is now considered in relation to industry. Whether or not a man shall do an honest day's work is as much a psychological condition as it is a matter of physical strength or skill. His attitude toward his work each morning is determined, to a large degree, by the environment of his home. Whether this attitude, good or bad, obtains the day through will depend entirely upon the one fact as to whether the corporation which employs him does or does not differentiate between the mechanical factor and the human factor in industry. To be more specific, sociological work, under whatever name, should be of such a character as to influence the life of a workman in such a manner as to establish a cooperative interest in his work, foster within him a spirit of contentment in his home, lead him so to employ his leisure time that he will not lower his efficiency as a workman, destroy his domestic happiness, or endanger his standing in the community as a citizen. While no fixed rules of procedure can well be formulated for the development of the work, yet definite lines of activities will readily present themselves as applicable to the individual needs of a community. This is especially true where community influences and agencies pertaining to general welfare are easily correlated. Any definite work attempted must be determined by the type of the

Jan 1, 1918

By Lawrence Addicks

Some three years ago the smelter connected with the Chrome, N. J., refinery of the United States Metals Refining Co. found itself embarrassed by constantly increasing piles of unsmelted blast-furnace flue dust. The charge was fine and 10 to 15 per cent. of it was blown over into the flue. Sulphur was at that time too scarce to make the sintering of the finer part of the charge attractive, and raw-ore smelting in a reverberatory with a partly oxidized charge was not to be thought of. A great many schemes were considered, including leaching, blowing into the converters, and briquetting, the problem finally narrowing down to blast roasting and nodulizing. It was found by experiment that blast roasting would not yield a satisfactory sinter without the addition of coke dust or sulphide fines to augment the fuel value of the flue dust, and on this account, together with the low first cost of a kiln, the latter was decided upon. A couple of tons of flue dust were tried out in the experimental kiln in the laboratory at Yorktown, Va., of J. H. Payne, who acted as consulting engineer in this connection. This kiln was approximately 2 ft. in diameter and 20 ft. long and was fired with fuel oil. A run of several hours yielded excellent nodules. The ki1n showed no tendency to build in and form "nose rings" and gave a fuel consumption of 50 gal, of oil per ton of flue dust. There was no indication of any stack loss. The roasting was strongly oxidizing. A study of what full-size kilns were doing on cement clinker and on nodulizing pyrites cinder indicated that a 60 by 6 ft. kiln would certainly not consume over half of the oil per ton of flue dust shown on the test and as fuel oil at that time was selling around 2 1/2 c. per gallon it was decided to let it go at that. A 60 by 6 ft. kiln was decided on, as that size is standard in cement practice, although fast being replaced by much larger ones with their greater fuel economy, and as it fitted in the building space available. A 6-in. brick lining brought the net diameter down to 5 ft. The inclination

Jan 1, 1915

This paper is directed at the problems flowing from Australia's capital gains tax (CGT) on the disposal of exploration and mining tenements both in Australia and overseas. It will seek to identify the issues and give some idea of the dollar consequences of decisions lacking forethought. The paper should not only be seen in the context of Australian tenements. CGT applies to the disposal of any assets by an Australian resident anywhere in the world. Offshore incorporated companies are not necessarily free from CGT risk where it can be shown that control management and control of the relevant company is in Australia. Also the disposal by non residents of Australian tenements are potentially caught by CGT. Some will ask what has taxation got to do with a valuer who merely determines the value of assets. These days no determination can be blind to the consequences. Whether the consequences can encourage a movement in value is another thing dependent upon the circumstances; but? A role of an experienced taxation consultant is to point out parameters within which associated professionals can work. The parameters will vary from case to case, but these when clearly indicated may be of help to persons such as valuers. When one comes down to it real estate salesmen are never wrong. They have a feel for the market and almost through self fulfilling prophesies achieve sales at their guestimates. Whether they could have achieved higher considerations become virtually academic in the process. Of course I am not suggesting that tenement valuers can be compared to real estate salesmen, or am I? What is the value of a tenement? Is it the DCF/NPV type of generated value based on a large number of variable factors (ie what one may call the fundamental value)? Or is it what another may pay to purchase that tenement if it were on the market at an instant point in time? How big is the market, the quality of the bidders, the size of their purses, the needs of the buyer for comfortable fit, the premiums for foreigners, the standard of the marketing, the industry intelligence level of the bidders, the obligation to farm/sell down? The list goes on endlessly. One question must be.asked-"Is a range of values acceptable for tax purposes". ie Would any tax consultant ever provide a valuation to the Australian Taxation Office that indicates three or more possible values ie

Jan 1, 1987

By Raymond B. Ladoo

TIIe milling of talc, as is the case with many non-metallic minerals, until recently, has not received adequate technical consideration, for the talc industry has become of importance only within the last decade. At first, talc was used only in the massive form, for foot warmers, griddles, and so on, and milling methods were unnecessary. As the demand for ground talc increased, producers adopted the machinery used in the milling of flour; in fact, many talc mills were rebuilt flour mills. Improvement has been slow, but today several types of grinding and separating machinery are in use; many of them, however, are still inadequate and inefficient. To determine the best methods of milling talc, it is necessary to understand the essential properties a talc must possess to fit it for a particular use. For toilet purposes, whiteness, freedom from lime and grit, fineness of grain, and good "slip" are essential. As a paper filler or coating, the talc must be white, uniform, and fine grained, have a good slip, and be free from grit and iron; freedom from lime is a disputed point. Fibrous talc is supposed to be superior to massive on account of the interlocking of grains in the paper, thus increasing its strength; this point, though, is in doubt. In general, talc for the paper industry need not be of as high quality or as fine grained as that used for toilet purposes. Talc is usually bought by sample, for which reason it is difficult to state the essential properties for use in paint, rubber, roofing, and so on. The adoption of standard screen tests and standard grades by producers is necessary before an accurate basis for manufacturing or selling standards can be established. Off-color talcs might be utilized, as in Germany and Austria, by the establishment of standard grades of colored talcs. The machinery to be used depends on whether the talc is fibrous, foliated, or massive; hard or soft; of uniform or variable grade; pure or impure. In some cases, it is possible to change the mining practice or to utilize different sections of the deposit in order to vary some of these factors, but in many cases these factors are fixed, so the milling must be designed to suit the conditions.

Jan 1, 1922

By Frank Peterson

THE manufacture of gasoline by extraction or precipitation from the natural gases in which it is found, the present status of. the industry, its past development and future extensions; offer a subject which is so broad that to handle it in its entirety would require a voluminous paper. The writer will, therefore, attempt to concentrate the essential matter of the subject for a general presentation, giving some of the most interesting details of the factors that are important to the industry. This industry has drawn liberally on the principles of physics and chemistry, and, to a large extent, has had to adapt such information as is most useful-not from data recorded with reference to petroleum, but from data recorded with reference to general treatment of other materials. Because of the complex character of the petroleum series of hydro-carbons and the fact that data, such as solubilities, vapor pressures, etc., of the different petroleum compounds have not been determined, we are still working by rule of thumb in. some essential phases of the industry. Furthermore, the difficulties of determining such data are almost insurmountable. We have not one,, but two butanes to deal with-not one, but several, pentanes, hexanes, heptanes, and, as we ascend in the series the complexity and multiplication of isomers increases at such a rate as to make the task of isolating and studying their physical characteristics almost beyond the hope of possible attainment. The industry is the connecting link knitting the interests of oil producers and refiners into a much closer relationship than ever existed .prior to its inception and development. The relation between the producer and the refiner of petroleum prior to 1910 was. a rather antagonistic one in a commercial sense. It was to the interest of the producer of crude petroleum to sell it for a maximum consideration; the refiner's interest was to obtain the same product for a minimum consideration; therefore, each side of the business transaction retained within his own hands as far as possible the trade secrets of his business. Each side maintained an attitude of cold-blooded business sympathy only for the other. Cas-

Jan 12, 1917

By Robert B. Parsons

"1984 was an eventful year in the courthouse f or observers 0/ the mining tax scene in Canada. For the first time in a number of years, the Federal Court heard several important tax cases which pertain directly to the resource industries. Tax Notes discusses/our cases that could affect the taxation 0/ operations and investment in the mining sector.Capital Gain or Income?Ever since tax reform, risk-takers in the exploration business have maintained that the taxation of capital gain s is a significant impediment to raising risk capital. It must be akin to rubbing salt in the wound, then, when an entrepreneur sells shares and the Court upholds Revenue Ca nada taxing the gain as ordinary income instead of capital gain. But, this is precisely what happened in the case of The Estate of Murray Watts, et al. v. The Queen.The issue that had to be decided by the Federal Court, Tri al Division, in this case was whether or not the profit from the sale of shares in Hearne Coppermine Exploration s Limited in 1968 was a capital gain, or income subject to tax.Hearne was incorporated in July, 1967. At that time, the three plaintiff s, together with seven other individuals, subscribed for 400,000 shares at 10 a share. The plaintiff subsequently subscribed for an additional 500,000 shares at $1.A pooling agreement was entered into by all ten shareholders regulating the disposition of any o f their shares; any sale required approval of seven of the ten initial sub scribers. It also provided for the sale of their shares 30 days after any public offering."

Jan 1, 1985

By David Reger

LITTLE new oil was found in West Virginia, during 1923, but there were important discoveries of gas. Most of the large oil producers have contented themselves with pumping old wells or in drilling only enough new wells in defined territory to maintain a fairly constant production, the attitude being that no, profit is made in producing high-grade oil at a low price and that an eventual loss is sustained by draining the reserves of a limited commodity that, at some more favorable time, will be of much value. The representative of one large company said: "We have done nothing but pump old wells during 1923 and we have made no plans for 1924." Careful attention to producing wells has been the rule, there having been few abandonments; the belief is prevalent that small wells will eventually become profitable under more favorable marketing conditions. In natural gas, the opposite point of view prevails. Because of the vast capabilities of the state for producing gas, its output being ahead of all others, great systems of transportation and distribution into the markets of four adjoining states have been built and a demand has been created that no present, or apparently potential, production can satisfy. This demand has become so great that large distributing companies not only discourage new applications for service but advise old customers to install coal furnaces for auxiliary fuel; some have requested public-service commissions to grant higher 'rates against large industrial consumers than those allowed for domestic heating. The response to this known market has been a rapid increase in price, both at the well mouth and at the door of the ultimate consumer, and the industry has become so stable that the only uncertainty, or hazard, appears to be the question of the presence of gas in fair quantity in a given territory under consideration. Several oil companies have now forsaken their policy of selling gas, wells outright when drilled and ;have organized gas departments to drill for gas and to dispose of the daily output by meter to distributing corporations. With such companies and with other producers whose interest is chiefly gas, the year has been busy and profitable. Some new territory of apparently large value has been proved and deeper producing sands in old fields have been tapped.

Jan 3, 1924

By I Haine, J Penm, T Waring

During 1999 there was a considerable turnaround in world prices for most minerals and energy commodities, except for the bulk commodities (coal and iron ore). The main reasons for this turnaround were: improved prospects in demand for most minerals and energy commodities in the Asian region following a return to both economic and industrial production growth in key economies in that region; continued moderate growth in demand in Europe and North America; substantial production cutbacks in a range of minerals and energy industries; effective reductions in the supply of oil by OPEC nations; and an announcement by European central banks that they would cap the amount of gold they sell and loan in the next five years. Most of these influences are expected to be sustained into the first years of the new millennium. In 2000, with exception of coal, average world prices of minerals and metals are forecast to rise significantly. Gross domestic product and industrial production is expected to grow in some European countries and most Asian countries in 2000 and, with moderate growth expected to be sustained in the United States, demand for minerals and energy is expected to increase. AustraliaÆs main bulk commodities, iron ore and coal, saw prices set for 1999 - 2000 at substantially lower levels in negotiations in early-1999. Double digit price cuts were locked in. However, similar falls appear to have been avoided for coal in Japanese Fiscal Year 2001, while increases of between four and six per cent were achieved for iron ore. Forecast modest recovery in economic growth in Japan and increasing demand elsewhere in Asia are expected to lead to tighter market conditions in 2000. Beyond 2000, world minerals and energy markets will be influenced by the expected robust global supply responses of minerals and energy companies, against a background of sustained economic growth and industrial production growth in major consuming countries. Over the medium-term, a return to declining real prices which have been evident for most commodities in the recent past, is expected as exploration, mining and processing technological change and associated productivity growth continues to reduce industry costs. While lower rates of exploration and mining investment in Australia between 1998 and 2000 will modestly constrain the rate of future industry expansion, Australia remains an important contributor to expected growth in global minerals supply over the medium-term. Australian mine production is forecast to grow between 1999 - 2000 and 2004 - 05, boosted by production from recently commissioned mines and minerals processing facilities and comissioning of other projects at advanced stages of planning.

Jan 1, 2000

By Robert H. Ridgway

This circular outlines salient facts regarding the sulphur industry of the United States and the world. It is founded chiefly upon published information available in the literature of the subject. The Bureau of Mines has in its files additional, more detailed data upon many of the topics presented very briefly here, and will endeavor to assist the mineral industries and the public by giving further information in response to individual inquiries. It will welcome comments, criticisms, and contributions of data that may assist in making later editions of this circular more accurate, or in developing more fully the bureau's mineral files pertaining to sulphur. Throughout this paper sulphur is used to designate crude sulphur or brimstone, not sulphur produced from pyrites or' smelter gases.

Jan 1, 1930

Research workers From the Bureau of Mines and industry met with other government and industry representatives in Pittsburgh, Pa., on January 22, 1975, to discuss the results of research under the Bureau of Mines Noise Control Program. The program, aimed at reducing noise in mines, is functionally divided into three major areas: Instrumentation, personal protection, and noise abatement. This proceedings contains the opening remarks to the seminar and seven technical presentations based on various aspects of noise abatement and control.

Jan 1, 1975

By CHARLES L. WRIGHT

Coals may be divided into six classes-anthracite, semi anthracite, semibituminous, bituminous, subbituminous, and lignite. The first three cla~ can be distinguished by dHferences of composition, particularly the proportions of fixed carbon and the ratios of the fixed carbon to the volatile matter in the cools. The last three classes can be distinguished by di:fferences in physical character, chiefly in color and in manner of weathering. Lignite is brown, not black, and has generally a woody look, but it weathers in much the same way as subbituminous coals. On exposure to the air lignite slacks or crumbles. The lumps check and fall into small irregular pieces that exhibit a decided tendency to separate into extremely thin plates. Hence lignite deteriorates greatly during storage or long transportation. The most characteristic feature of the composition of lignite is a large percentage of moisture. '!his high moisture content reduces the fuel value of freshly mined lignite, and the partial evaporation of moisture, on expooure, causes th6 fuel to check and fall to pieces. Consequently, attempts to increase the efficiency of lignite as a fuel involve reducing its percentage of moisture and increasing its ability to endure storage and transportation. Both these results are accomplished by briquetting.

Jan 1, 1911

By Thomas T. Read

The cost of labor turnover in industry is so large as to justify the adoption of almost any means to bring about its reduction. Intensive study has shown that faulty methods of hiring and discharging men is the most important factor in labor turnover. Complete control over hiring and discharging by the foreman is a relic of outgrown industrial conditions; centralized hiring permits this work to be put on a scientific basis and also does away with many serious evils that cannot, otherwise be reached. Centralized hiring does not impair the authority of the foreman; he hires his men from the employment office and discharges them back to it, instead of from and to the street. The employment manager, being a direct representative of the employer, tends to restore the former relation of direct intercourse between employee and employer that was helpful in avoiding friction between them. Being a specialist,, he is able to bring special knowledge and skill to bear upon the task of selling employment in his concern to desirable workmen; he is also able to give the foreign workman the special attention he requires. Employment managers have been used for the past few years by a number of large organizations, a few of which are engaged in the mining and rnetallurgical industries. They have invariably reduced labor turnover, in some cases to as little as one-tenth of what it had been. So great a reduction is due in part to other changes made in the light of the data made available by scientific study of the labor problem. In my former paper on personnel work' I advocated the more general use of the employment manager in mining and metallurgical enterprises as a means of reducing labor turnover. The form of organization recommended seems not be to understood by all, and I have requested the privilege of explaining it at greater length, since it is perhaps the most important factor of all in personnel work, and has a vital influence on the cost sheet of every industrial enterprise.

Jan 1, 1918

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

Introduction “A Western mine is a hole in the ground owned by a liar. . ." -Mark Twain THE CAPITAL INVESTMENT DECISION Decisions pertaining to a firm's proposed capital investments can have vital short- and long-term consequences on the organization's ability to compete, and even survive.Capita1 investment decisions, in general, center around two fundamental activities: (1) allocating capital funds to specific investment projects or assets, and (2) obtaining necessary financing in such proportion as to increase the overall value of the firm. In essence these activities or decisions describe the science of finance (as contrasted with economics). Fimnce has been described in general terms as the study of how a present, known amount of cash is converted into a future, perhaps unknown, amount of cash (Archer, Choate, and Racette, 1979). Fundamental to understanding the science of finance and the capital investment decision process in general are the basic concepts relating to cash flow transactions, time, income generation (markets), expected returns, and risk. The functions of finance may be segregated into three fundamental decisions which a firm must address: (1) the dividend decision, (2) the financing decision, and (3) the investment decision. These decisions are interdependent and their joint impact on the objective of the firm must be considered. This book primarily addresses the concepts and components associated with the investment and financing decisions as they affect the practice of mine valuation. Responsibilities of Management A primary assumption incorporated in this book is that the fundamental objective of any firm is to maximize its value, or wealth of its owners (stock- holders). Here, the term wealth refers to the total current market value of the firm's assets. In the case of corporations, the wealth or value is considered to be represented by the market price of the firm's common stock. The price of the firm's common stock obviously will be affected by its investment, financing, and dividend decisions. Consequently, an optimal combination of these three decisions should maximize the value of the firm to its stockholders. It is important to point out that wealth maximization is a more appropriate and inclusive goal for the firm than profit maximization. Indeed, there is a difference between the two objectives in most situations. For instance, a firm can always raise profits by selling stock and investing the proceeds in treasury bills or certificates of deposit. This type of activity, however, would rarely cause net shareholder wealth

Jan 1, 1984