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Berkeley University of California Regional Oral History Office University of California The Bancroft Library Berkeley, California Western Mining in the Twentieth Century Oral History Series Knoxville District /Mclaughlin Mine Project William A. Humphrey MINING OPERATIONS AND ENGINEERING EXECUTIVE FOR ANACONDA, NEWMONT, HOMESTAKE, 1950 TO 1995 With an Introduction by Jack E. Thompson, Jr. Interviews Conducted by Eleanor Swent in 1994 and 1995 Copyright 1996 by The Regents of the University of California Since 1954 the Regional Oral History Office has been interviewing leading participants in or well-placed witnesses to major events in the development of Northern California, the West, and the Nation. Oral history is a modern research technique involving an interviewee and an informed interviewer in spontaneous conversation. The taped record is transcribed, lightly edited for continuity and clarity, and reviewed by the interviewee. The resulting manuscript is typed in final form, indexed, bound with photographs and illustrative materials, and placed in The Bancroft Library at the University of California, Berkeley, and other research collections for scholarly use. Because it is primary material, oral history is not intended to present the final, verified, or complete narrative of events. It is a spoken account, offered by the interviewee in response to questioning, and as such it is reflective, partisan, deeply involved, and irreplaceable. ************************************ All uses of this manuscript are covered by a legal agreement between The Regents of the University of California and William A. Humphrey dated 28 September 1994. The manuscript is thereby made available for research purposes. All literary rights in the manuscript, including the right to publish, are reserved to The Bancroft Library of the University of California, Berkeley. No part of the manuscript may be quoted for publication without the written permission of the Director of The Bancroft Library of the University of California, Berkeley. Requests for permission to quote for publication should be addressed to the Regional Oral History Office, 486 Library, University of California, Berkeley 94720, and should include identification of the specific passages to be quoted, anticipated use of the passages, and identification of the user. The legal agreement with William A. Humphrey requires that he be notified of the request and allowed thirty days in which to respond. It is recommended that this oral history be cited as follows: William A. Humphrey, "Mining Operations and Engineering Executive for Anaconda, Newmont, Homestake, 1950 to 1995," an oral history conducted in 1994 and 1995 by Eleanor Swent, Regional Oral History Office, The Bancroft Library, University of California, Berkeley, 1996. Copy no. / William A. Humphrey, 1991. Cataloging information HUMPHREY, William A. (b. 1927) Mining engineer Mining Operations and Engineering Executive for Anaconda. Newmont, Homestake. 1950 to 1995. 1996, xvi, 225 pp. Childhood in Potrerillos, Chile; education, University of Arizona; Anaconda Co., 1950-1975: junior geologist to executive vice president, Cananea Consolidated, Mexico, planning vice president, Butte, MT; discusses mine mapping, open stope mining system, solvent extraction, electro-winning, bacterial leaching, silver and gold payrolls; Newmont Mining Company, 1975-1981: vice president operations, mines in Canada, U.S., Africa, Peru; Homestake Mining Company, 1981-1995: executive vice president, president, vice chairman, discusses McLaughlin Mine development, management during construction and operations; Australian, Chilean subsidiaries; Doe Run Company, 1987-1990: chairman, chief executive; chairman, hazardous waste committee, Western Regional Council, legislative advisory group; Armand Hammer, oil shale project; comparison of corporate executives, management styles, mining philosophy. Introduction by Jack E. Thompson, Jr., President, Homestake Mining Company. Interviewed in 1994 and 1995 by Eleanor Swent for Knoxville District /Mclaughlin Mine Project, Western Mining in the Twentieth Century Oral History Series. Regional Oral History Office, The Bancroft Library, University of California, Berkeley. DONORS TO THE KNOXVILLE DISTRICT /MCLAUGHLIN MINE PROJECT OF THE THE WESTERN MINING IN THE TWENTIETH CENTURY ORAL HISTORY SERIES 1993-1996 The Regional Oral History Office, on behalf of future researchers, would like to express its thanks to the following corporations, organizations, and individuals whose encouragement and support have made possible this oral history project of the Knoxville District /McLaughlin Mine. Corporations and Organizations Chemical Lime Company Hearst Foundation Home stake Mining Company Jackling Fund of the Mining and Metallurgical Society of America One Shot Mining Company Individuals Rosemary and Harry Conger Margaret and Douglas Fuerstenau Launce Gamble Edna and William Humphrey James H. Jensen Eleanor Swent in memory of Langan Swent James William Wilder TABLE OF CONTENTS- -William A. Humphrey PREFACE--Western Mining in the Twentieth Century Oral History Series i PROJECT HISTORY- -McLaughlin Mine Oral History Project v INTRODUCTION- -by Jack E. Thompson, Jr. x INTERVIEW HISTORY- -by Eleanor Swent xii BIOGRAPHICAL INFORMATION xiv I CHILDHOOD IN POTRERILLOS, CHILE, 1927-1936 Father's Difficult Childhood 1 Fond Memories of Maternal Grandmother 3 Life in an American Enclave 5 Arizona-style Houses 6 Four Years With an Unfair Teacher 12 The Parents' Social Life 14 Clothing Remembering the Smelter Layout 17 Vacation Trips to the States 19 II YOUTH IN NEW JERSEY 22 A Very Different World 22 Meeting Edna Joule 24 Service in the Navy 25 Geography Student at Rutgers 26 III UNIVERSITY OF ARIZONA AND ENTRY JOBS, 1947-1950 28 Engineering with a Geological Option 28 Summer Work in a Hollow Tile Plant, New Jersey 29 Learning to Study in the Navy 30 The G. I. Bill 31 Contractor's Helper at the San Xavier Mine 32 Summer Work in a "Picky-Poke" Mine 34 The Artillery Peak Manganese Project 36 Good Teachers Krumloff, Chapman, Butler 37 A Really Focused Student 38 Recollection of Social Drinking in Chile 39 Working in the Bureau of Mines Warehouse 41 IV WORKING FOR THE ANACONDA COMPANY, 1950 43 Applying for the Job 43 An Interview with Vincent Perry and Alex McDonald 44 Going to Work at Cananea, Mexico 45 An Isolated, Old-Fashioned Camp 46 The Greene Cattle Company 50 Silver Payroll and Gold Payroll; a Turning Point 51 Manager Mendelsohn Kept the Pot from Boiling Over 53 Benefits: Low-Cost Housing, Medical Care, and School 55 Adventures Getting to Tucson for a Baby's Birth 57 V GEOLOGIST, PLANNING ENGINEER, SHIFT BOSS 61 Junior Mine Geologist 61 Detailed Mapping; the Anaconda System 62 The Planning Department: Learning About Machinery, People, Rock, and Process 65 Solving a Problem in the Precipitation Plant 68 Working as a Shift Boss; Appeasing Self -Trained Supervisors 70 Learning from a Mine Disaster 73 A Good Open Stope Mining System 74 Improvements in Drilling Equipment 76 Improvements in Explosives 77 VI PLANNING A NEW OPEN PIT MINE GOOD FOR TWENTY YEARS, 1959-1979 79 Looking at the Entire Mine Operation 79 Selling the Idea to the Management 80 Investing in New Equipment 82 Assistant to the General Manager 85 Roland Sheldon and Bob Weed, Mentors 88 Hunting Trips in the Mountains 89 Decisions on Concentrating and Leaching the Ore 91 Turning to Solvent Extraction and Electro-Winning 92 Beginnings of Environmental Concerns 94 Bacterial Leaching 95 The Importance of Traveling Salesmen as Educators 96 Ralph Kress, a Truck Designer 98 Promotion to General Superintendent, 1968 100 VII ANACONDA COMPANY ENTERS A NEW ERA 102 Management Lessons Learned by both Good and Bad Examples 102 The Degeneration of Anaconda 104 Promotion to Manager of Cananea, 1971 105 Transfer to Butte as Planning Vice President 106 VIII VICE PRESIDENT OF OPERATIONS FOR NEWMONT, L975 TO 1981 108 A Welcome Telephone Call 108 Responsibility for Many Different Operations 110 Making an Unwelcome Suggestion at Cuajone, Peru 111 Granduc, a Losing Proposition 112 Problems with the Idarado Mine 114 Pete Loncar and a Lithium Mine in North Carolina 116 Advice for the Palabora Mine 117 Joel Waterland's Vision for the Homestake Mine 119 Director of Sherritt Gordon; Leaf Rapids 120 Plato Malozemoff's Management Style 124 Three Corporation Leaders Compared: Malozemoff of Newmont, Weed of Anaconda, Conger of Homestake 127 Another Telephone Call Out of the Blue 131 An Offer from Armand Hammer to Mine Shale Oil 133 IX EXECUTIVE VICE PRESIDENT AND PRESIDENT OF HOMESTAKE MINING COMPANY, 1981 TO 1992 136 A Reorganized Operating Group 136 Only a Mining Man Can Run a Mining Company 140 David Fagin as President of Homestake 142 X THE MCLAUGHLIN MINE 146 With $600 Gold, a Real Winner 146 Refractory Ore a Problem 147 Transferring from Exploration to Operation 148 Hiring Jack Thompson as Operator 150 Rex Guinivere, Construction Engineer 152 Ray Rrauss, a Crackerjack Environmental Guy 153 Investigating the Autoclave Method of Ore Treatment 154 John Turney, Metallurgist 156 A World Trip to Make the Pre-feasibility Study 157 Selecting Davy International as Constructors 158 Vital Technical Advice from South Africa 159 Construction Cost Overruns 161 A Quarter of a Million Dollars to Pump Rain Water 162 Unexpected Variety in the Ore; Compensating Errors 164 Making Oxygen is Very Expensive 165 Problems with Lime to Neutralize Acid 165 XI MANAGING A MODEL MINE 167 None of the Investment was Wasted 167 The Challenge