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By Robert B. Parsons

"A study recently completed by the Prospectors and Developers Association, assisted by the author and computerized mine models he developed, presents a strong case that present tax rules severely handicap the junior exploration company relative to the established producer. This month, Tax Notes briefly summarizes the highlights of the study and some of the Association's ideas which came out of the study.IntroductionIn the case of any industry, a particular project or investment will generally generate a more attractive after-tax rate of return to a tax paying entity than to a non-tax paying entity: the ability to shelter current taxable income with tax deductions related to the project or investment can present a definite advantage as compared to shielding taxable income in the future with the same deductions. But, this advantage is probably seen nowhere more clearly than in the mining industry where the tax rules allow for substantial up-front write-off's. Studies show that the junior mining company which is earning no taxable income currently can be seriously disadvantaged, compared to the mining company which is currently generating taxable profit and paying taxes. This is particularly disturbing when one considers the importance of the junior segment of the mining industry. One might well ask where the equity is, in a tax system which causes the junior company to look at a deposit and see rock in the ground, when at the same time the deposit represents a viable mine to an operating company. This inequity and the importance of the junior mining company have been recognized to some extent in the income tax legislation. In recent years, the expansion of the rules for deducting certain earned depletion allowances against any source of income, and changes to improve the flow-through share rules, have gone part way in helping to put the junior on a more equal footing with the operating company. But it is questionable whether or not these helpful changes to the tax rules have done enough to alleviate the apparent inequities in the income tax legislation."

Jan 1, 1985

By Dina Aloi

The need to be seen as responsible neighbours and good corporate citizens is a critical success criteria for mining companies. To be seen as responsible requires both achieving responsible performance, and making that good performance visible to the community, legislators, investors, and other stakeholders. This has broadened the skills required for the successful operation of a mining company to include social sciences, public affairs, communications, and environmental sciences. Mining companies still look to technical specialists to achieve the core of that good performance - broadly characterized as a sustainable operation. However, the degree of understanding that those specialists have of the requirements for sustainability and overall Corporate Social Responsibility has a tremendous impact on the overall performance of the project and company. In her keynote address to the Sustainability for Profit session, Dina will outline some of the key areas in which technical employees and consultants can contribute to achieving successful sustainable mining operations.

Jan 1, 2010

By R. J. Rotzinger, K. W. Major

The Gibraltar Mine and Mill facility were commissioned in 1972 by Gibraltar Mines Ltd utilizing a flowsheet consisting of two stages of crushing followed by a rod mill / ball mill grinding circuit. During operations a number of opportunities were evaluated to expand the mill capacity; however, the economics of the day did not allow any of these projects to proceed. The mine continued to operate until late 1998 when it was shutdown and put on care and maintenance due to low commodity prices. Taseko Mines acquired Gibraltar in 1999 and in 2004, with the improvement in the metal markets, made the decision to restart operations. During the restart planning a number of opportunities for mill improvements and upgrades were identified and, after operations were successfully restarted, the decision was made to once again review expansion opportunities for Gibraltar. Taseko evaluated various expansion alternatives eventually deciding to install a SAG Mill, convert the existing rod mills to ball mills and distribute the SAG discharge to the resultant six 6 parallel ball mills. This paper discusses the design, implementation and commissioning of the SAG mill grinding circuit.

Jan 1, 2012

By Robert D. Brown

The federal government kicked off the new budget season in November 1978, when Finance Minister Chretien announced a handful of proposed amendments to provisions of the federal Income Tax Act and Regulations affecting mining. (See Tax Notes in the January 1979 issue of the CIM Bulletin.) Declaring in his budget speech that these changes were in response to the report of the joint federal/provincial task force on resource taxation, Mr. Chretien tossed the ball to the provinces-" I want to take the lead here... I feel confident that the provinces will do their part". Quebec and Ontario, picking up the ball in their spring budgets, have announced favourable modifications to the provincial taxes on mining, with these moves being paralleled in the recent Manitoba budget, which proposes a flatrate mining tax to replace the previous controversial two-tier royalty. In the meantime, the federal government passed a host of amendments to the federal earned depletion regulations. The result is yet another batch of complex tax changes for the industry to note and digest, but this time with the hopeful factor that most of the changes are favourable to the industry. This article reviews the current status of the federal budget changes, comments on the Ontario, Quebec and Manitoba proposals, and reports on the changes to the earned depletion regulations that were passed by Order-in Council in March 1979.

Jan 1, 1979

By R. P. Mahant

"Extensive pilot plant investigations were conducted both on partial roasting an d electric furnace smelting from September 1973 to August 1975.The objectives of the pilot plant investigations were:(I ) to confirm the application of available process technology to treatment of Falconbridge concentrate.(2) to examine partial roasting variables.(3) to investigate electric furnace smelting of roaster calcines .(4) to develop process design and operating parameters for a commercial plant.This part of the paper will cover the following topics:Partial Roasting InvestigationsPilot Electric Furnace InvestigationsPartial Roasting InvestigationsThe specific objectives were to:1. establish process variables for maximum oxygen efficiency and bed fluidi ation.2. determine the product distribution between the roaster and the various gas cleaning stages.3. produce a mass and thermal balance."

Jan 1, 1984

By V. Vekris

A diverse patent portfolio and an effective intellectual property strategy are vital in today’s small business world. Not only does a diverse patent portfolio enable a company to secure a monopoly within the market, it greatly increases the value of a company’s intangible assets and keeps competitors at bay. An overview of the patenting process as it pertains specifically to the materials science-related start-ups will be given, together with a summary of some general patenting strategies and a review of some patenting errors to be avoided, such as premature disclosure of the invention to the public. Additionally, a review of new “green technology” initiatives recently adopted by Patent Offices around the world is also provided. These initiatives are expected to greatly benefit patent applicants in the fields of metallurgy and mining, where research efforts are often directed to environmentally-friendly products and processes. INTRODUCTION Patents are playing an increasingly significant role in the business world. A diverse patent portfolio can enable a company to secure a monopoly within the market, which can provide a competitive advantage over competitors. At the same time, patent portfolio of any size can greatly contribute to the total value of a company’s intangible assets. As an example, Nortel entertained bids in 2011 for its portfolio of about 4000 patents, a large portion of which were directed to 3G- and 4G-mobile communication technologies. The portfolio was eventually sold for $4.5 billion to a consortium including Apple, EMC, Ericsson, Microsoft, Research in Motion, and Sony. Copper mining, and indeed the global mining industry as a whole, is facing challenges. Ore deposits are increasingly low grade, complex, and deeper in the ground, rendering copper mining operations more difficult and costly. Production costs are increasing. According to one study, the cost of producing copper has increased by an average of 10% per year since 2005 (Cantallopts, 2017). To illustrate, the cost of producing a pound of copper in 2005 was 90 cents, but had increased to 217 cents by 2014.

Jan 1, 2019

By I. Ueda, S. Ishikawa, T. Nagata

“O-SR process” in which the S-Furnace of the Mitsubishi process is followed by existing reverberatory furnaces (RFs) and Peirce Smith (PS) converters has been operated since December 2007. The S-Furnace smelts copper concentrates to produce molten matte containing 58-62%Cu which is then settled in the RFs and converted to blister copper in the PS converters. The SO2 gas generated from the S-Furnace and PS converters is converted to sulfuric acid in the acid plants. In addition to the smelting copper concentrates, the O-SR process has advantages in terms of recycling various waste/secondary materials. Automotive Shredder Residue (ASR) has been treated in the RF to reduce fossil-fuel consumption in RFs, and to recover various metals included in ASR as well, since 1993. Electronic circuit boards (E-scrap) has also been processed in order to recover not only copper but also rare resources such as gold, silver and PGMs since 2013. Strategic modifications have enabled expansion of the processing volume of E-scrap. Enhancing recycling of wastes and scraps from urban mines while reducing the consumption of natural resources in the “O-SR” process will be demonstrated and discussed in the present paper. INTRODUCTION Onahama smelter and refinery has been operating as a custom smelter since 1965. Smelting facilities were subsequently expanded to two green-charged RF furnaces and five PS converters in 1973. Since RF is a conventional old-fashioned smelting furnace that necessarily consumes a huge amount of fuel to smelt copper concentrates, saving fuel cost has been an important objective. In early 1980’s the fuel was changed from bunker oil to pulverized coal, while utilizing the combustion heat of waste tires. Furthermore, treatment of combustible waste such as shredder residue (SR) was initiated in order to save fossil fuel for smelting concentrates in the RFs. Since enhancing of the treatment of SR requires a reduction in concentrate smelted in the RFs, most concentrates were dried and injected through tuyeres into the PS.converters. These modifications enabled to reduce the amount of the pulverized coal combustion and to increase SR treatment in the RFs. SR treatment capacity has increased to 12,000mt/month because the SR market has grown after the enforcement of the Vehicles Recycling Law. Such business environment has been attributed to establish the thermal-materials recycling system of SR in which the RFs have changed their role from copper concentrates smelting furnaces to waste materials combustion furnaces.

Jan 1, 2019

By M. Specht, D. Pörzgen, W. Lorenz, A. /. Buhr, R. P. Racher

The introduction of the near net-shape casting process at CORUS Staal IJmuiden in January 2000 required changes of secondary metallurgy processes including a development towards more aggressive slag compositions in the steel ladle. Therefore the steel ladle lining has been changed from fired andalusite bricks to magnesia-carbon bricks and, most recently, to fired spinel bricks to withstand the severe slag conditions. In comparison to the andalusite bricks the new steel ladle linings have a higher thermal conductivity. This requires the capability to keep the lining warm by ladle preheaters to sustain the overall thermal stability of the steel ladle in case of interruptions during hot cycling of the ladles.

Jan 1, 2004

By Tracy-Lynn Humby

A recent report commissioned by the South African Chamber of Mines, Mining Vision 2030, identifies the South African mining industry?s negative legacy, its exploitation of people and the environment, as the single biggest hurdle to maximizing the industry?s impact on national development. Industry leaders have identified the need to put the past ?to rest?. With reference to three recent cases involving members of the South African mining industry, this paper points to the continuities between the past and present. It argues that the metaphor of ?multiple crossings? is more generative than the notion of putting the past ?to rest? for purposes of engaging with mining?s negative legacy.

Aug 1, 2013

By Lastram Rolando, Larry J. Hulbert, Louis J. Cabri, J. H. Gille Laflamme, John L. Campbell, Soey H. Sib, Chris G. Ryan

"The mineralogy of samples from the Wellgreen Cu-Ni-Pt-Pd deposit, Yukon Territory, is complex and the metals of interest are contained within fine-grained minerals which vary in size and mineral associations from sample to sample.The major Ni carriers are pentlandite and violarite; the major Cu carrier is chalcopyrite. About 700/0 of the major Ni carriers and 78% of the major Cu qurier will be liberated at a grind of 80% -U,.7 ,an (-500 mesh) for typical low-grade gabbro (West zone, sample No.1). For typical ""clinopyroxenite"" (West zone, sample No.2) and typical ""clinopyroxene-rich peridotite"" (East zone, sample No.3) the liberation would be 71% and 65% for Ni, 74% and 60% for Cu, respectively. Fine grinding, however, cannot liberate the Ni contained in silicates and pyrrhotite, estimated to total 24.5% for typical low-grade gabbro (West zone, sample No. I), 15% for typical ""clinopyroxenite"" (West zone, sample No.2), and 12% for typical ""clinopyroxene-rich peridotite"" (East zone, sample No.3).The principal Pt carrier (sperrylite) varies considerably in grain-size between samples and fine grinding, required to liberate the major Ni and Cu carriers, may be counterproductive in samples where sperrylite is relatively coarse-grained, as some would then be unrecovered (e.g. sample No. 1). In addition, sperrylite in samples No.2 and No.3 is closely associated with magnetite. Palladium occurs in diverse ways. It occurs in the form of several Pd minerals (e.g. sudburyite, testibiopalladite, merenskyite), as a replacement for Ni in several tellurides, antimonides and tellurantimonides (e.g. melonite), or as very low concentrations in pentlandite (up to 34 ppm), chalcopyrite (up to 9 ppm), and pyrrhotite (up to 5.6 ppm). Palladium minerals and Pd-bearing minerals are strongly associated with chalcopyrite in sample No. 1 and will thus report to a Cu concentrate.However, 22% of the total Pd is in solid solution in pentlandite in this sample and will thus report to the Ni concentrate. In samples No.2 and No.3, less Pd occurs in solid solution in pentlandite, and the PGM are distributed mainly among pentlandite, chalcopyrite, and magnetite in sample No. 2, and among pentlandite, pyrrhotite, chalcopyrite, and magnetite in sample No.3. Therefore, the feasibility of magnetic concentration should be investigated for samples like No. 2 and No.3, in order to improve Pt and Pd recoveries. Rhodium was found to occur as rare hollingworthite, in sparse cobaltite (up to 2.7%) and, as low concentrations in chalcopyrite (to 10 ppm) and pentlandite (to 12 ppm) by proton microprobe. Iridium occurs in hollingworthite (up to 7.8%) and very rarely as the native metal or in an undefined Re-Ir-Qs..Ru alloy. Ruthenium was determined by proton microprobe analyses to occur in pentlandite (up to 13 ppm) and chalcopyrite (up to 10 ppm), in addition to rare laurite and Re alloy."

Jan 1, 1993

By E. W. Johnson

"The current increase in gold price may presage a resurgence of gold milling plants in Canada similar to that of the thirties. Because the industry has been at a low ebb for almost two decades, future operating responsibilities will likely devolve upon personnel with limited cyanidation experience. My comments, which may seem elementary to experienced operators, are directed towards these industry newcomers to highlight operational features in cyanidation which forty years' experience has shown me to 0e of importance. A brief review of what actually takes place in a cyanide circuit may help give a better understanding of the topics to be discussed.These will include: (1) expose the gold (2) dissolve the gold(3) make solid/liquid separation(4) recover the gold from solution.1. Expose the GoldThe chemical key to gold recovery by cyanidation lies in the ready solubility of the metal in a relatively weak solution (0.04%-0.075% NaCN equivalent by weight) of calcium or sodium cyanide. Obviously, dissolution cannot start unless the cya1ide is in contact with the gold. As an analogy, the yolk of a hard-boiled egg can oe taken to represent the gold particle and the egg white and shell, the surrounding gangue or sulphide host. As the sl1ell and white must be fractured to expose the yolk, similarly the surrounding gorngue or sulphide host must be broken or fractured to enable the cyanide solution to contact the gold."

Jan 1, 1979

By Robert B. Parsons

"While it might seem like heresy to suggest that ""taxation"" can be a source of financing, never the less some generous tax rules can considerably enhance the tax savings pertaining to a particular expenditure or project. A basic tax knowledge, and careful tax planning, can optimize government participation in a project. INTRODUCTIONIn trying to identify sources of financing for a project, ""government"" as a source of funding is normally thought of in terms of government grants, loan guarantees, interest rate buy downs, property tax waivers, hydro subsidies, and so on. Generally, such concessions are somewhat difficult to obtain, especially in the current period of apparent fiscal restraint. One source of government funding which should not be overlooked is the income tax regime, and, at the provincial level, the various provincial mining tax regimes.While the taxpayer would not normally view a tax system as a potential source of government financing, nevertheless various federal and provincial rules applicable to the mining industry can offer attractive tax deductions - and tax savings - with respect to particular expenditures. In fact, it is not unusual for a civil servant to refer to a tax deduction as a tax ""subsidy"". For example, in the right circumstances, the cost of a smelter expansion in New Brunswick would cost the operator only 31 cents on the dollar, with the federal and provincial governments paying for the other 69 cents by foregoing tax revenues (Table I). In a sense, such tax savings could be compared to a government grant equal to 69% of project costs. Of course, not every project expenditure will generate that degree of government funding. The fact of the matter is that the percentages of tax savings attached to different expenditures cover a wide range, depending on a complex mix of factors. The point to understand is that the tax rules can offer some valuable savings, even after tax reform, and that a basic knowledge of the tax rules can yield some fruitful rewards."

Jan 1, 1989

By N. Dufresne

"The evolution of mining methods at Brunswick Mining and Smelting shows that, in the case of a large deposit, technology must adapt itself to changing conditions. As problems are encountered, management must modify their approach if they hope to meet production quotas. This search for new and better ways started with the opening of the No. 12 orebody and is still going on today.From large-scale open stoping, the Brunswick Mining and Smelting operation went to transversal cut-and-fill, then to longitudinal cut-and-fill, which is the main mining method now employed. However, to solve certain problems experimenting with Avoca methods was initiated. Rebar grouting and prepinning have also made significant contributions toward securing relatively poor ground in the hanging wall and holding badly fractured backs in wide stoping areas. Introduction In 1952, M.J. Boylen had incorporated Brunswick Mining and Smelting Corporation Limited to develop his recently found No.6 and No. 12 orebodies near Bathurst, New Brunswick. Between 1953 and 1957, St. Joseph Lead Company was brought in to try and initiate mining . During those years, St. Joseph Lead sunk two shafts at No. 12-No. 1 to 425 feet below surface and No.2 to 982 feet. They also developed the 200 and 350 levels to sample the ore at depth and operated a 100-tpd pilot plant at the No.6 mine. However, due to low recoveries and depressed metal prices. the project was shut down in 1957.A group including M.J. Boylen. K.C. Irving. Maritime Mining Corporation and Patino Corporation reacquired the property from St. Joseph Lead Company in 1961. New financing was arranged involving La Societe Generale des Minerais, S.A . of Belgium and Engineering Consultants Limited of Saint John. New Brunswick. During the years 1962 and 1963, construction of surface and underground facilities progressed rapidly."

Jan 1, 1981

By G. R. Sadowski

"Large subhorizontal joints have been found in the foundation excavations in basalt and granite of Brazilian Dams. Some spread for hundreds of square meters showed slickensides—polished surfaces plus striations—and laminations interpreted as related to shear displacement, what substantially reduced their shear strength and imposed special reinforcement measures against the potential sliding of overlying concrete structures. The geological characteristics of these discontinuities have raised speculations related to their origin, be it related to mechanisms of bulging, cambering or to some tectonic or primary geological event.Several geologists and engineers from the northern hemisphere including Terzaghi already showed to be concerned with their role in granite foundations while in the southern regions Brazilian authors have found similar occurrences but also affecting individual lava flows of continental flood basalts in the foundations of major dams of the Parana Basin, which they designated under the particular name of “fault-joints”. This double-standard designation is self-explanatory of the difficulties involving their origin and related geomechanical properties: faults or just shear joints?Recently, similar features were encountered in the foundations of large dam constructions in anorogenic granites inserted in the realm of the Brazilian Amazon, where some of these discontinuities exhibit features common to tectonic thrusting combined with deep tropical weathering.The evidence of preshearing along the surfaces of such fractures, also associated to products of deep weathering, reduces their geomechanical strength substantially, suggesting values of ultimate phi spanning 12 to 28°. The detection of these descontinuities during initial investigation phases continues to be a major complex task in geological risk evaluations surveys. Trenching associated to some geophysical exploration techniques, although considered to be very basic exploration techniques are still the suggested methods for their forecast and previous determination."

Jan 1, 2015

By Arthur Lieu

The mill effluent treatment circuit (Bulk Neutralization (BN)) in the Cameco Key Lake Operation was modified in 2008 to enhance the removal efficiency of selenium (Se) and molybdenum (Mo) from the mill process water. This modification was completed in part due to increased knowledge of the effects these elements have on biota. In addition, legacy effects from the historical operation of the Key Lake mill in regards to Se and Mo were shown to have an effect on the regional biota in the downstream receptors. This was a challenging initiative as there was no off the shelf technology available and the removal process had to be incorporated into an existing (brownfield) process. These modifications have resulted in significant reduction in the concentration of these elements in the Key Lake mill effluent. The removal efficiency for Se and Mo in the modified circuit has increased to 95% and 75%. As a result, concentrations of Se and Mo are now consistently less than 0.4 mg/l and 0.02 mg/l. In addition, the Se and Mo precipitates formed were extensively studied to ensure long-term geochemical stability in the Key Lake in-pit tailings facility. This presentation will provide additional detail on the hydrometallurgical removal mechanisms and process modifications required in the Key Lake BN circuit to remove these elements to trace levels.

Aug 1, 2010

By Y. T. John Kwong

Abstract - To exploit an ore deposit without unduly impacting the environment is a challenge that can only be met by the concerted efforts of traditionally independent teams working on a mining project. Not only is detailed geology required of geologists to help mine engineers to develop a mine plan that assures generation of the least possible amount of mine waste, but metallurgists also have to select the most environmentally friendly mineral processing schemes, and communicate with environmental engineers with regard to complications that process chemicals may pose on proper mine waste management. Traditional ore deposit models typically emphasize the geological and mineralogical aspects of ore genesis to facilitate exploration for similar deposits. Recent research has shown that potential environmental liabilities such as acid mine drainage and metal leaching can readily be predicted according to deposit types. The choice of mining methods, mineral processing schemes, and decommissioning options are also largely dictated by the composition and setting of an orebody to be mined. Integrating such related information into traditional ore deposit descriptions would lead to the development of comprehensive environmental ore deposit models. The latter would facilitate communication among staff of the varied components of a mine project and aid with the selection of a combination of methods and strategies that would assure minimum environmental risks and impacts, reduce the overall project cost, and enhance sustainable development.

Jan 1, 2003

By Robert B. Parsons

"Income tax legislation is not keeping pace with federal and provincial environmental legislation. There is a vast array of new environmental regulations at various stages of implementation across the country. Unfortunately, there are serious concerns about the deductibility of significant payments which mining companies will be required to make under these new rules, and the Department of Finance seems to be reluctant to act on these concerns. IntroductionWhile the federal and provincial governments are racing ahead with obvious fervour to introduce new envirorunental laws, the tax rules relating to envirorunental costs are being allowed to lag far behind. In a nutshell, the tax treatment of envirorunental costs is not keeping pace with the new envirorunental legislation.One of the most serious concerns of the mining industry is the deductibility of mine reclamation or closing costs. The producing provinces are well advanced down the road toward mandating upfront deposits, bonds, or similar financial guarantees to protect the envirorunent from the operation and eventual closure of a mine. These requirements are not small. In some instances, they can amount to tens of millions of dollars. And, if there is no tax deduction for these sums when they are set aside by the mining company, then the costs have to be paid out of the company's after-tax earnings."

Jan 1, 1991

By w. w. Fraser

"In late 1985, Hudson Bay Mining and Smelting Co., Limited announced the Namew Mine/Mill project. Environmental baseline monitoring and planning began in early 1985 while a major drilling program was under way to delineate the ore deposit. This paper overviews the environmental assessment work conducted for the mine/mill operation, and outlines the tailings and water management practices.Planned environmental works and approach were affected in late 1988 when a massive water problem was encountered in the mine. The requirement to depressurize the rock surrounding the underground workings led to the need to develop, on short notice, an environmentally-acceptable procedure to dispose of a large volume of slightly-saline water.Biological toxicity tests performed on the depressurized effluent proved the effluent to be non-toxic and thus allowed resolution of the disposal problem. This resolution includes the conversion of a large water body from native fish species to a rainbow trout fishery."

Jan 1, 1991

By Prodipto Ghosh

This paper is prepared as a review of existing and traditional methods related to electrical maintenance strategy. Its primary focus is to explore newer ideas and how they point the way to a more efficient and effective manner of electrical maintenance. This discussion is primarily related to large electrical distribution assets typical of heavy industry such as mining.

Aug 1, 2013

By K. Waters, A. Navarra, T. Grammatikopoulos

Strategic decisions to develop a mineral deposit are subject to geological uncertainty, due to the sparsity of drill core samples. The selection of metallurgical equipment is especially critical, since it restricts the processing options that are available to different ore blocks, even as the nature of the deposit is still highly uncertain. Current approaches for long-term mine planning are successful at addressing geological uncertainty, but do not adequately represent alternate modes of operation for the mineral processing plant, nor do they provide sufficient guidance for developing processing options. Nonetheless, recent developments in stochastic optimization and computer data structures have resulted in a framework that can integrate operational modes into strategic mine planning algorithms. A logical next step is to incorporate geometallurgical models that relate mineralogical features to plant performance, as described in this paper.

Jan 1, 2017