Search Documents

By Carl Zapffe

The manganese ore reserves of Lake Superior, because of their location and nature, have recently achieved a rnarked degree of importance as compared with the world's manganese reserves. To appreciate fully the significance and the adequacy of this reserve, one should understand how such ores are used, where obtainable, the quantity used, possible avenues for increasing use or application, and the chemical and physical characteristics of the available ores. Only with those data at hand, is it possible to arrive at a convincing answer to the question whether the reserves of manganiferous iron ores are adequate to satisfy the annual demand of the presently known iron ores for the full life of the latter. That they should last is vital; and to ascertain whether they will last was the purpose of the present investigation, which marks the first attempt to study these Lake Superior reserves. The Lake Superior region possesses and supplies the full assortment of iron ores needed for the conversion of ore into pig iron and steel ingots and castings. These ores are named bessemer, low-phosphorus and high-phosphorus non-bessemer, manganiferous and siliceous; and to include the term aluminiferous would be in keeping with the most recent nomenclature adopted by some dealers. About 35 or 40 years ago, perhaps less, most of the Lake Superior ore which is being used today was the material then considered either useless or too poor for immediate use; perhaps it was considered no more than a future reserve. An examination of the analyses of ores and the guarantees in the sales of those older times convince one that the opinions of those days must have been governed by only small differences in analyses. Some grades of ores used today in substantial amounts were used most sparingly only one or two decades ago. The relative quantities of the different ores used are ever changing; and, bit by bit, the metallurgy and the opinions are ever changing and the prejudices against certain ores and practices decrease. This is unquestionably more pronounced for the manganiferous ores than for any other kind. If, when using the present data for manganiferous ores, we will only be content to make allowances for the same experiences other kinds of ores

Jan 1, 1927

By AIME AIME

FIFTY years ago William Bertolette Plank was born in Pennsylvania, in which state he was also educated, winding up with an E.M. from Penn State in 1909, at the age of 23. ' He remained there as instructor for a year, and then went with the Philadelphia & Reading Coal & Iron Co. as mining engineer for three years. During the next four years he was on the staff of the Pittsburgh Coal Co. In 1916 he turned to Government work, going to Pittsburgh as junior mining engineer for the U. S. Bureau of Mines. He became successively assistant mining engineer there, mining engineer at the Bureau's Urbana, Ill., station, and finally Mr. Plank was appointed district mining engineer for the Bureau at Birmingham, Alabama.

Jan 1, 1937

By J. A. Musselman, P. F. Gnirk

A study was made of indexed penetrations by a single dull bit tooth under statically applied loads into rock subjected to confining pressures from atmospheric to 5,000 p.si and atmospheric pore pressure. Experimental results obtained with a 45" wedge tooth over the above range of pressures are presented for two limestones and a sandstone, a variely of indexing distances and two degrees of tooth dullness. The optimum distance between successive bit-tooth penetrations required for maximum rock damage and chip formation decreases substantially with increa.sing confining pressure above the brittle-to-ductile transition pressure of a particular rock. However, the distance remains approximately constant for a variation in confining pressure below the transition pressure. At a given confining pressure, the bit-tooth force required lor chip formation is constant for indexing distances greater than optimum, but generally decreases linearly with decreasing indexing distance for distances less than optimum. The chip-formation force data obtained at confining pressures for which the chip-generation mechanism is macroscopic-ally of a pseudoplastic nature compare favorably with previous theoretical results for indexed dull hit-tooth penetrntion into an idealized, rigid, perfectly plastic rock. INTRODUCTION To study the cutting action of a roller-cone bit, the interaction of a penetrating bit tooth with craters formed in a rock surfacc by the passage of previous bit teeth must be considered. Current knowledge of the basic mechanics of bit tooth-rock intcract:on under simulated borehole environmental conditions has been extensively reviewed.',' Particularly of current interest are the effects of bit-tooth shape, distance between successive penetrations and differential pressure at the rock surface on the extent of the interaction. Pertinent to this paper are results of an experimental investigationb f the interaction between successive penetrations by sharp, wedge-shaped bit teeth. It was demonstrated that both bit-tooth angle and differential pressure influence the extent of rock damage between successive bit-tooth penetrations. Specifically, the optimum or minimum distance between successive penetrations required for maximum interact'on or chip generation tends to decrease with decreasing bit-tooth angle and increasing differential pressure. In addition, at differential pressures on the order of 2,000 psi for four va- rieties of limestones and sandstones, the macroscopic mechanism of chip formation exhibits a transition from brittle to ductile. In this paper, experimental consideration is given to successive or indexed penetrat ons by wedge-shaped bit teeth. Since pore pressure in a rock sample is maintained at atmospheric pressure, the differential pressure at the fluid-rock interface is equal to the confining pressure. The degrees of bit-tooth dullness include teeth with flat and round apexes (Fig. 1). Of primary concern in this paper are the bit-tooth forces required for chip formation, the macroscopic mechanism of chip formation and the minimum distance between successive penetrations, i.e., optimum indexing distance required for maximum rock damage, as functions of differential pressure. Of further interest is a comparison of actual bit-tooth chip formation forces at elevated differential pressures with calculated forces from previous theoretical results4 for indexed dull bit tooth penetration into a rigid-plastic rock. EXPERIMENTAL APPARATUS AND PROCEDURE The experimental apparatus consists of a pressure vessel equipped with a piston through the side of the vessel (Fig. 2). A single bit tooth inserted in the lower end of the piston is forced at a desired rate into the rock when the ram pressure chamber is pressurized. Electrical instrumentation incorporated into the apparatus yields a graphical plot of force on the piston as a function of bit-tooth penetration or displacement into the rock. Since the piston and ram assembly are in force equilibrium for a constant confining pressure in the main vessel, the fluid volume in the vessel remains constant during bit-tooth penetration. Hence, the force resisting penetration of the tooth is independent of the force exerted on either end of the as-

By H. Conrad, K. Janowski, E. Stofel

In a previous paper,1 the occurrence of (0001) and (0111) twins was reported for compression tests of 60-deg-oriented sapphire rods in the temperature range from 1100° to 1300° C. Subsequent to this initial work, additional tests have been conducted, and twinning has been found to occur at temperatures as high as 1500° C. Also, the temperature and strain-rate conditions for the two types of twins and for slip have been established in more detail. The present note covers this more recent work. The compression-test data are summarized in Table I. The techniques for identifying the twins are optical examination up to X1000 and X-ray analysis.' It is evident that (0711) twins are pre-

Jan 1, 1965

Descriptions of the following awards and lists of recipients through 1957 may be found in 1957 AIME Directory Recipients since that time are as follows JAMES DOUGLAS GOLD MEDAL 1958-J Roy Gordon "For distinguished contributions to process metallurgy in the field of smelting and refining of nickel, and metallurgical improvements in nickel recovery " 1959-Clyde Williams "For outstanding contributions in nonferrous metallurgy partic¬ularly through stimulating research and interest in the basic metallurgy and the use of both the common and the less common metals " WILLIAM LAWRENCE SAUNDERS GOLD MEDAL 1958-Willlam Jesse Coulter "For his distinguished achievement in contributing in general to the success of Climax Molybdenum Company, and, in particular, for developing mining practices of the Climax Mine "

Jan 1, 1959

The North American Coal Corp. Increasing demand for coal, stimulated by the national energy shortage, and complicating and often conflicting, demands by government and ecology groups for better land reclamation methods continued to propel advances in surface mining technology during 1974. To meet current demands for coal (estimated at more than 700 million t for 1975 and 1.5 billion t in 19851, equipment manufacturers and coal operators concentrated on increasing the productivity of all surface mining equipment. The trend towards larger equipment, particularly in overburden removal, loading, and haulage machinery, prevailed during the year, notwithstanding the perennial debate over the economics and practicality of using large, inflexible equipment. Increasingly, the industry called on computers to monitor productivity and help design more efficient production systems

Jan 2, 1975

By I. E. Rosenzweig

The problem considered in this paper is as follows: An arbitrary horizontally stratified area is given. The electrical properties of this area are characterized by a function p(z) (Fig. I), which shows the relationship between resistivity p of the soil and the depth z. For such general case the apparent resistivity p* will be computed, by earth-resistivity measurements carried out by any given configuration of electrodes. General solutions of this problem appear to be very important for interpretation of field results of resistivity measurements, concerning structural investigations. Such solutions have been given by many authors for the special case of a finite number of homogeneous layers (Fig. 2)lV4 as well as for the more general case of continuously ranging resistivities.5-8

Jan 1, 1940

By I. E. Rosenzweig

The problem considered in this paper is as follows: An arbitrary horizontally stratified area is given. The electrical properties of this area are characterized by a function p(z) (Fig. I), which shows the relationship between resistivity p of the soil and the depth z. For such general case the apparent resistivity p* will be computed, by earth-resistivity measurements carried out by any given configuration of electrodes. General solutions of this problem appear to be very important for interpretation of field results of resistivity measurements, concerning structural investigations. Such solutions have been given by many authors for the special case of a finite number of homogeneous layers (Fig. 2)lV4 as well as for the more general case of continuously ranging resistivities.5-8

Jan 1, 1940

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By Eugene F. Broome, Hugh A. Walls

Self-diffusion coefficients were measured using the modified shear cell technique over a temperature range from 31" to 401°C. These data agree within experimental error with those of Petit and Nachtrieb, which were determined from 30°to 99°C. LIQUID self-diffusion behavior in gallium has been studied previously by Petit and Nachtrieb&apos; using their shear cell technique.&apos; Data were obtained in that investigation over temperatures ranging from 30.6 to 98.7"C, and these comprise the only published data for liquid gallium. In the work reported here, diffusion data were obtained from 30.8 to 400-9.Cusing a shear cell technique different from that of Petit and Nachtrieb. This modified shear cell method and the mathematical analysis for diffusion in a finite capillary geometry have been previously described.3 PROCEDURES AND ANALYSIS The segments of the modified shear cell were fabricated from types 304 and 316 stainless steel. No corrosion problems with gallium were encountered until attempts were made to obtain data at 500°C. The diffusion capillary diameter was 1.59 mm and capillary lengths for the four sets of cell segments used are given in Table I. Gallium with a purity of 99.999 wt pct was obtained from Var-Lac-Oid Chemical Co. The gallium-72 isotope used to measure the self-diffusion coefficients was produced from this inert gallium by irradiation in The University of Texas Reactor Facility, and was checked for radiochemical purity. Following a period of isothermal diffusion controlled to within 0.0l°C, the contents of each capillary section were emptied into a counting planchet, weighed to assure that gallium had not been lost during handling, and the radioactivity determined by windowless gas-flow proportional counting. Great care was taken to obtain a reproducible counting geometry for the samples. Diffusion coefficients were obtained from the solu-tion3 to the diffusion equation for the modified shear cell problem, viz.: in which B2= C2(t)Li + L2)- CSL1-COL2 P* (C0-Cs)(L1+ L2) and L, and L2 are the capillary segment lengths. The step-function initial concentration distribution was expressed as C(x,O) = C, for -L1 = x < 0 and C(x,O) = Co for 0 < x 5 L?. Also, C2(0 = ^- fcix,t)dx Computation of the diffusion coefficients was done numerically as described in our earlier paper.3 Because of the short half-life of gallium-72 (14.1 hr) and the relatively long counting times taken to give a precise value of the diffusion coefficient, it was necessary to account for the radioactive decay both during the actual count and between counts for different samples (before and after diffusion). Thus, the average count rate Cz(t) for a second sample counted from times t3 to t4 can be made consistent with the average rate Co determined for a first sample counted from times t1 to t2 by the relationship: N(e-»i-e-M») , , C2(f) " &-«,)(*-«.-«-»«) [21 in which N is the total number of counts taken and is the decay constant. RESULTS AND DISCUSSION The self-diffusion coefficients determined in this investigation are listed in Table 11. Values of the parameters used to calculate the coefficients are given in the table, as are values of the random counting error &apos; for the concentration ratio pz and the corresponding expected random variation AD in the diffusion coefficient. The quantity is calculable from: &apos;Cg — C2(t)} , „ ,2 .-„¦, M co-csl(ACs)J W in which AC is the error in the individual count rate. The mean values of the diffusion coefficients within each temperature group are also given in Table 11. Such temperature groupings of data are reasonable because of the small variations between the temperature~.~

Jan 1, 1970

By J. K. Brooke, F. A. Renninger

During 1966, crushed stone production in the United States totaled just over 811 million tons valued at almost $1.2 billion. This represented in- creases of 4 % in tonnage and 5 % in value over that for 1965. Excluding the crushed stone used for agricultural and certain industrial purposes (cement, lime and flux), crushed stone mineral aggregate production totaled 616.3 million tons valued at almost $910 million, also up roughly 4% in tonnage and 5% in value over the 1965 figures. Limestone was by far the most widely used rock variety, followed by basalt, granite and sandstone in that order. Concrete aggregate and roadstone continued as the main uses for stone, accounting for 63% of all tonnage produced in 1966 and 60% of total stone value. Sand and gravel production in 1966 increased 3% over that for 1965. Total 1966 output was just in excess of 934 million tons valued at almost $985 million as compared with 908 million tons at $957 million for the previous year. Excluding the higher valued industrial sands, 903.2 million tons of sand and gravel valued at $891.6 million were used directly as mineral aggregates, representing a 2.9% increase in tonnage and a 2.4% increase in value over 1965.

Jan 2, 1968

By J. D. Price, W. M. Bertholf

In preparing a paper on coal washing in Colorado and New Mexico, it is difficult to refrain from entering into a discussion of the historical aspects of this subject, for the story of coal washing in these states goes hack well into the last century. This phase of the subject could well make a complete paper in itself, and of necessity this present discussion must be limited to current operations. Therefore, we are taking into consideration only those washing plants which have operated for some period during the years of 1947 and 1948. Summary Of the eight million tons of coal mined in the two states in 1947. ap- proximately two million tons were washed in wet washing plants, using concentrating tables or jigs. The one table plant accounted for 70 pct of the output of washed coal, and two large Baum jig plants accounted for an additional 26 pct, leaving only a small residual tonnage to be accounted for by other types of jigs The necessity for washing coal is occasioned by the desire or necessity of reducing the ash content of the coals— sulphur is not a problem in this area. All washeries, except the table plant, are at or near the tipple, hence wash only one kind of coal. At the table plant a large number of different coals are washed. Only at the table plant is there any occasion for drying any considerable quantity of fine coal— other plants size and/or dewater on shaking screens. The results of washing at the smaller plants are judged by the number (or lack) of complaints about the quality of the washed coal. This is probably as good a system as can he devised for small, intermittent operations. The efficiency of the Baum jig ap-pears to be quite high. This is to be expected as long as the automatic control of the refuse gate operates properly. The efficiency of the concentrating table is not as high as that of the Baum jig, especially when the "difficulty" of washing is taken into consideration. When dealing with coals in which the "bone" is larger than the "coal," the table appears to be at a definite disadvantage, because of its sizing action.

Jan 1, 1950

American Zinc Institute, 60 East 42nd St , New York, N Y. Julian D. Conover, Secretary The monthly Journal of the American Zinc Institute contains papers on zinc deposits, mining and metallurgy of zinc, as well as affairs of the Institute, statistics, and many papers on phases of the utilization of zinc It has the title "Zn " The numbers for each year are collected as volumes for that year, the first volume was issued in 1918, and the latest complete volume available is Vol 12 (1929) Copies of Indexes to the volumes will be sent upon request Back numbers of the Journal are not generally available for distribution but may be seen in most libraries For further information regarding papers, back numbers of the Journal, or volumes, address the Secretary

Jan 1, 1933

By John Drew Ridge

For the early conservationists before the first decade of the twentieth century, conservation meant largely the planned preservation of water, forest, soil, and wildlife resources-renewable natural resources-through efficient use. Water was primarily thought of as a resource that must be kept available for humans to enjoy in a recreational sense and as a habitat for wild animals, birds, and fish. Little thought was given to conserving water for actual human or industrial needs. If industry entered the picture it was as an actual or potential polluter of water, which was the basic necessity for drinking and bathing and for outdoor recreation. Even the forests were only held worthy of conservation largely because they were areas in which wildlife could, or should, abound and in which human beings might find relief from the cares and problems of everyday life. Finally, the soil was to be preserved in its natural fertility through proper fertilization, cultivation, and crop rotation; in this the conservation program did enter the realm of the practical. For through soil conservation, the world was to be able to raise increasingly large crops of constantly improved organic foods which the steadily growing population of the earth was to need to survive and improve. Relatively little time, however, was spent on considering what profit the farmers of the world were to make from the scientific farming on which they were to embark. In short, the appeal of the early conservationist program was much the same as that of the entire era of Theodore Roosevelt of which it was a part; it was to the heart rather than to the mind; it was to emotion rather than to reason. Because of the way in which the problem was approached, conservation took on the character of a crusade rather than that of a practical plan for the betterment of man through economically sound methods of improving his environment and the uses he makes of it. Conservation had, then, all the advantages of a stirring appeal to the emotions, but it did not have the lasting results that would have been achieved by a program with a sound economic basis.

Jan 1, 1959

By R. Woods

INTRODUCTION Gaudin (1), considered that "the mechanism of mineral collection is the central problem of flotation theory". From their work on adsorption phenomena in flotation for more than fifty years (2), Gaudin and his co-workers have made major contributions to the elucidation of this mechanism, a fact acknowledged by their contemporaries in the field (e.g. (3)). Their investigations in a number of areas, e. g. demonstrating that submonolayer quantities of adsorbed collector species can induce flotation, or identifying the influence of substances which can activate or depress (1), have helped to provide the basis for and the development of a theory to account for the interaction between mineral and collector. It was established in the late fifties (4) that the presence of oxygen is a prerequisite for the flotation of metal sulfides with thiol collectors. This fact rendered inadequate the concept of simple ion adsorption being responsible for rendering these minerals hydrophobic. The requirement for oxygen has been explained (1) in terms of this species being a component in chemical reactions between the sulfide surface and the collector. Gaudin has been instrumental in identifying the products of chemical reactions at sulfide minerals (1, 5), a line of work which has been continued particularly by Finkelstein and co-workers in South Africa (6). In presenting a detailed mechanism of the mineral-collector- oxygen interaction, it has often been considered that the mineral surface [must] first be oxidized to a metal oxy-sulfur species which

Jan 1, 1976

By James D. McClung, H. J. Gluskoter, M. R. Geer

INTRODUCTION The purpose of coal preparation is to improve the quality of coal to make it suitable for a specific purpose by (1 ) cleaning to remove inorganic impurities; (2) sizing-crushing or screening, or both; or (3) special treatment, such as dedusting. The properties and quantities of impurities in coal are of major importance in the design and operation of steam generating equipment. Al- though boilers are often designed and equipped to use a wide range of coals, no boiler will perform equally well with all types of coals. All coals have certain properties that place limitations on their most advantageous use. These limitations are especially stringent for many of the older installations. Because of a general lowering of quality of raw coal in recent years, the need for coal cleaning has significantly increased. Among the factors contributing to the need for increased coal preparation are (1) increased demand for quality brought on by market and environmental requirements; (2) increased extraneous dilution caused by mine, health, and safety laws; and (3) depletion of the higher-quality coal seams.

Jan 1, 1979

By A. Berthet

In the past two decades, of the successive steps leading from iron ore to finished steel, the production of liquid steel and its preparation for the casting operation has probably undergone the most drastic evolution. The reason for this is the development of oxygen converters (top blown and later on bottom blown) and UHP arc furnaces which are replacing the conventional processes such as the open hearth and basic Bessemer processes. These new processes have been great advances, but it would certainly be quite hazardous to assert that the situation will remain the same for the coming decades. In fact, with the advent of continuous steelmaking a new generation of processes has now arrived. The research and development programme at IRSID on continuous an a steelmaking began ten years ago has progressed systematically in the following stages : First a comparison was made on a small pilot scale of various techniques : for example, refining in a runner by top or bottom blowing, pulverizing the metal stream by oxygen, using the mixing effect of a vortex, etc. but for various reasons these processes proved unsatisfactory and were abandoned in favour of a method using the so -called "emulsion refining".

Jan 1, 1972

By Sandford S. Cole

Manganese compounds occur in many mineral forms widely distributed throughout the crust of the earth. The most important of these commercially are the oxides which are usually found as irregular masses, but in some places (notably U.S.S.R.) occur as extensive beds of varying thickness and purity. The principal sources of ore have been U.S.S.R., Ghana (the Gold Coast of Africa), India, Union of South Africa, Belgian Congo, French Morocco, Cuba, Brazil, and Mexico. New developments of ore are being conducted in Brazil, British Guiana, French Equatorial Africa, and Northern Rhodesia. The production of the United States normally meets less than 10 pct of domestic manganese consumption. Manganese ore (35 pct or more Mn) is used principally by the ferrous metallurgy industry for production of manganese metal, ferromanganese, and other manganese alloys for use in production of steel ingots and castings. Some manganese is used in the nonferrous industry as an alloying element and cleanser in aluminum alloys, aluminum bronze, constantan, manganese bronze, Monel, Everdur, nickel-chromium resistance alloys, and nickel-silver. The metallurgical uses consume about 97 pct of the total manganese ore requirements of the United States. The balance goes principally for the manufacture of dry cells and for chemicals, with limited amounts for ceramic products, plastics, welding rods and varnish. The Materials Survey on Manganese, compiled in 1952 for Materials Office National Security Resources Board by the Bureau of Mines and Geological Survey, provides an excellent review of resources, reserves, specifications, uses, mining, beneficiation, metallurgical processes and deposits, and is worth referring to for greater details. Mineralogy and Geology The more common manganese minerals with typical characteristics are listed in Table 1 in order of importance. [ ]

Jan 1, 1960

By K. L. Ludeke, A. D. Day

For many reasons, it appears that deep rooted, perennial shrubs offer potential for improved stabilization and provide maintenance free vegetative cover to harsh sites where perennial grasses have not been successful. The major objective was to select various shrub species of arid plants for initial soil stabilization of disturbed mining areas. The very fact that a drought-adapted shrub has a massive root system that can use moisture from a greater volume of mineral waste soil materials suggests that arid environment disturbed soils may be vegetatively stabilized using desirable forage shrubs. A secondary effort is underway to assemble information and plant materials of promising species from many arid regions of the world for reclamation of mined lands. Surprisingly, many of the better plants for arid sites are quite high in protein content. With proper management, breeding, and selection, they may prove to be very desirable livestock feed when mined lands are used in range land areas. Advancements in arid land solid waste stabilization hold favorable promise for many industries that mine and mill in arid regions for effective reclamation of disturbed areas. Particularly exciting is the possibility of establishment of high density maintenance free vegetative cover of climax vegetation that reclaims the disturbed area back to its original land use. Due to high shrub productivity, stabilization potential, nutritional quality, and reclamation success, greater use should be made of shrubs in disturbed land reclamation associated with mining and milling operations in harsh aril environments.

Jan 1, 1986

By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985