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By Seymour Fiekowsky, Alvin Kaufman

Taxes are compulsory charges levied by a government for its support. They are usually paid to support the general services provided by government rather than special services (such as safety inspection). The latter are normally supported by user charges often called license fees. Taxes are used by national governments not only to raise money but also as a part of fiscal policy. As such, taxes are used to stimulate or deflate the economy, as an incentive to save or invest, as a means of allocating national resources, and as a means of redistributing income. In our discussion, we will deal only with those facets of the subject that relate specifically to the mineral industry. In doing so we will deal with taxes levied on all industry in a generalized way and only insofar as it affects our industry, but at some length on those portions of the tax system related directly to the mineral industry. It is not our intent to provide a "cookbook" for computing taxes, but rather to present some of the policy issues that bedevil those who must develop our tax policies. MINERAL TAXES The mineral industry is subject to the full range of taxes levied by governments. These include taxes on income, property, and sales, as well as excise and severance taxes. The latter are somewhat similar to a royalty in , that such taxes are levied either ad valorem or per unit of output. Severance taxes most commonly are charged to oil and gas output, although coal, salt, sulfur, and iron ore production also have been taxed in this manner. The major governmental advantage of the severance tax is the administrative ease of collection. On the other hand, it poses an addition to cost independent of profitability. As a consequence, the severance tax can cause premature abandonment if mineral product prices do not rise sufficiently to cover it. Such a rise may not occur if differential tax rates are levied by the various states. Property taxes normally are levied on all property owners, including mineral owners. The major difficulties in this kind of tax, in so far as mining is concerned, are erratic valuation coupled to the inherent problems involved in assessing a property where the extent and richness is chiefly unknown. The impact of these taxes, including state income taxes, is reduced somewhat, as they are usually deductible from gross income as a business expense with a consequent lowering of national income taxes. The net cost of severance, property, sales, and state or local

Jan 1, 1976

This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

By William B. Plank

NEVER before have so many men chosen the mineral technology field for their college training. In the college year 1936-'37, 7190 such students were enrolled in the 53 schools of the United States. My last study of the mineral technology schools of the United States and Canada was made for the year -1934-'35, and the current study, as the previous one was made for the A.I.M.E. under the auspices of the Division of Mineral Industry Education. Altogether, four studies of enrollment have been made. The first three were for successive college years beginning with 1932-'33. This present one covers a two-year period, for the purpose of these studies may he served satisfactorily if they are made biannually. The data on the schools were collected in the same way as for former studies, 'namely, by questionnaire, dated in this case Nov. 18, 1936. The figures reported are therefore comparable with those of former cars.

Jan 1, 1937

By Northcutt Ely

This chapter deals with the systems of laws by which governments regulate the exploration for and production of the minerals within their jurisdictions. It is a summary, restricted by necessary space limitations, of material assembled by the author for a publication of the United States Bureau of Mines, "Summary of Mining and Petroleum Laws of the World," (Information Circular 80 1 7, 196 1. ) The present study is organized in three parts, dealing with (1) the historical background of these legal systems, (2) laws of the United States, and (3) laws of other countries of the world. The reader's attention is invited to the acknowledgments at the end of the chapter, which inadequately express the appreciation due those who have assisted in the collection of this material. Part I. Historical Development of Major Western Systems of Land Tenancy with Respect to the Ownership and Control of Minerals The use of metals in primitive societies was largely confined to the manufacture of weapons for self-preservation. The ruler's control over copper, then bronze, then iron, was essential to maintenance of his own ascendancy at home and his group's position against neighbors who had access to similar metals. Ancient societies were thus characterized by the ruling group's ownership of minerals and metals. The Egyptian civilization, which emerged in the fourth millenium B.C. upon the agricultural subjugation of the lower valley of the Nile, was responsible for extensive development of the upper valley as a source of mineral wealth. The production of gold during the height of that civilization has been estimated at $30,000,000 per year, thus equaling the early placers of California and Australia. The mines of Egypt were the property of the Pharaohs and were controlled at their direction. Greek mining developed a different scheme of land tenancy which more closely resembled modem concepts. Development of mineral resources was

Jan 1, 1964

By Northcutt Ely, Charles F. Wheatley

This chapter deals with the systems of laws by which governments regulate the exploration for and production of the minerals within their jurisdictions. It is a summary, restricted by necessary space limitations, of material assembled by the author for a forthcoming publication of the United States Bureau of Mines, "Summary of Mining and Petroleum Laws of the World." (Information Circular, 1959.) The present study is organized in three parts, dealing with (1) the historical background of these legal systems, (2) laws of the United States, and (3) laws of other countries of the world. The reader's attention is invited to the acknowledgments at the end of the chapter, which inadequately express the appreciation due those who have assisted in the collection of this material. Part I. Historical Development of Major Western Systems of Land Tenancy with Respect to the Ownership and Control of Minerals The use of metals in primitive societies was largely confined to the manufacture of weapons for self-preservation. The ruler's control over copper, then brass, then iron, was essential to maintenance of his own ascendancy at home and his group's position against neighbors who had access to similar metals. Ancient societies were thus characterized by the ruling group's ownership of minerals and metals. The Egyptian civilization, which emerged in the fourth millenium B.C. upon the agricultural subjugation of the lower valley of the Nile, was responsible for extensive development of the upper valley as a source of mineral wealth. The production of gold during the height of that civilization has been estimated at $30,000,000 per year, thus equaling the early placers of California and Australia. The mines of Egypt were the property of the Pharaohs and were controlled at their direction. Greek mining developed a different scheme of land tenancy which more closely resembled modem concepts. Development of mineral resources was

Jan 1, 1959

By R. G. Johnston

Minerals have many uses in paint systems. These roles include use as primary and extender pigments, sheen control, film durability enhancement, and rheology control. These and other uses of minerals in paints, and the effects of mineral quality variations on coatings performance are discussed. As coatings performance requirements become more demanding, tighter consistency of important mineral properties, such as particle size distribution and purity, is becoming increasingly vital. Future directions of mineral use to meet projected environmental restrictions and performance demands on coatings, including the use of advanced minerals technologies, are examined.

Jan 1, 1993

By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016

By R. K. Collings

The annual production of mineral and mineral-based wastes in Canada is conservatively estimated to be 400 million tons. Over 90 per cent of this amount is waste rock or mill tailings from the mining and mineral processing industry. The remainder are slags and ashes from the metallurgical industry, and sludges from the chemical industry. Because of impurity content, remote location, or both, most wastes have limited usefulness and, indeed, are a liability in that they must be transported to waste disposal sites and contained therein. Certain mineral wastes do, however, have potential value. Some contain small percentages of metals that may be economically recoverable with price increases; others consist of mineral material that may be used for such purposes as road base, construction aggregate, railroad ballast, and in the manufacture of bricks or blocks. Increased interest has been shown in mineral wastes in recent years. This paper reviews the types of mineral wastes available in Canada, briefly describes a number that have potential value, and notes possible uses and related research by CANMET and other organizations.

Jan 1, 1978

By R. K. Collings

Mineral wastes from the mining, metallurgical and chemical processing industries in Canada amount to about 800 million tonnes annually. Such wastes often are largely non-metallic in composition and are of interest for traditional non-metallic mineral uses and applications. Mineral waste disposal and maintenance are costly; furthermore, these wastes may pollute groundwater, rivers and lakes. These factors and an increased appreciation of the potential utility of some mineral wastes have stimulated research in this area.

Jan 1, 1984

By K. P. Wang

Under the Communist regime marked industrial progress has been achieved on the China mainland. Within a decade, the country has been transformed from an economy primarily agricultural to one bristling with industrial possibilities. The industrial capacity of Communist China is beginning to approach that of Japan and will probably surpass it by 1962, the last year of the Second Five-Year Plan. The slogan already is Beat the United Kingdom by 1972, a goal which most observers feel will be achieved ahead of schedule. During the early years of the industrialization program in Communist China, emphasis has been placed on basic goods; hence additional time will be needed to make large quantities of the more complicated products. However, regardless of the current stage of industrial development, it is apparent that the necessary forward momentum has been created. The many capital construction projects being brought into production and the additional projects being initiated confirm this observation. The accuracy of Communist China's industrial statistics can be questioned, but their order of magnitude is clear. To properly evaluate the industrial capability of the country, differentiation must be made between the absolute quantities that reflect overall strength and the per capita quantities that reflect living standards. While Communist China is well on the road to becoming a world power, its living standards will remain below European levels for many years to come.

Jan 8, 1960

By J. R. Thoenen

IN five years mineral wool has grown to a thirty-million-dollar industry from one whose output was valued, in 1933, at $1,700,000. Ten years ago, in 1928, there were only seven producing companies, with an annual output of but 50,000 tons. By 1936 fifty or more companies were producing half a million tons. The industry is still growing vigorously and will profit from the expected activity in building in 1339, for two-thirds of this material is used for building insulation and to assist in fire-retarding, in both new and old homes. It is as useful in the South, to protect against heat, as in the North, to keep out the cold, if one may speak nontechnically. It is a concomitant of air conditioning, that new addition to the American standard of living that began in theatres, department stores, and railroad dining cars, and is rapidly progressing down to small homes. Here, then, is an industry that is only beginning to have a present, and one with an almost certain important future; one that depends upon mining and the by-products of mining for all of its raw materials; one that every progressive mining man should know something about.

Jan 1, 1939

By John T. Thorndyke

MOST important of the naturalcalcium silicates is the meta¬silicate, CaSi03, known as wollastonite, after W. H. Wollaston. A large deposit of this mineral was dis¬covered some seven years ago near Code Siding, Rademacher mining dis¬trict, Kern County, Calif., the deposit being some 7500 ft. long and of an average width of 300 ft. It consists of a series of small domes striking north¬erly and southerly and with a dip of 81 ° to the south. This deposit was opened up by a series of small quarries showing a potential tonnage of 12,000,¬000 tons, allowing of cheap mining and transportation, the Southern Pa¬cific R.R. spur track being one mile north of the workings. Numerous sam¬ples taken from different points on the deposit, tested by Mr. Brinker, of the California Testing Laboratories, Los Angeles, showed an average as fol¬lows: Per Cent Silica (SiO2) 47.12 Lime (CaO) 41.72 Magnesia (MgO) 2.72 Alkalies (R,0) Trace Iron (Fe.,O,) 1.60 whereas the theoretical composition of of wollastonite, as given by William Shirley Bayley, is as follows: Silica 51.75 Lime 45.25 The tonnage and purity of this de¬posit led to investigations into its com¬mercial development. Early work es¬tablished the fact that wollastonite was ideal for the manufacture of a tough, almost unbreakable, glass similar to Pyrex. It also established the fact that wollastonite was particularly adapted for use in the manufacture of mineral wool, towards which further research was then directed. Briefly, the prin¬cipal advantages were the substantially unvarying chemical composition of the naturally occurring mineral and its characteristic of being relatively flexi¬ble and highly resilient when fused into a glass. A mineral wool produced therefrom is thus not only of highly uniform composition and color but is most desirable because of the high mechanical strength and length of the individual fibers constituting the wool. It is well known that mineral wool may be prepared by melting a suitable charge of raw material and then intro¬ducing a stream of a suitable fluid, such as air or steam, into a stream of the molten raw material. By this means the molten material is blown into threads or fibers, which are collected in a suitable chamber similar to a tun¬nel, from which they are removed from time to time or continuously. Com¬mercial manufacture of mineral wool has been carried on for only about 50 years, but volcanoes, specifically Kilauea in the Hawaiian Islands, have

Jan 1, 1936

By Samuel W. Woods

The Tacoma, Washington plant is one of six plants in the United States Gypsum Company's Acoustical and Mineral Fiber Division. The Tacoma facility was acquired in 1959 along with six other mineral wool plants from the American Rock Wool Company. Originally, the Tacoma plant was built as a carbide plant during the Second World War and after that was converted and operated as a mineral wool plant by several insulation companies. Through these early years, the use of raw materials at Tacoma consisted primarily of slags along with small percentages and various combinations of silica (in various forms such as gravel), limestone and basalt. These raw materials were melted in cupolas using coke as the heat source. Raw material usage and types as well as mineral wool production methods and equipment remained without major changes for many years.

Jan 1, 1983

By William F. Lawrence

Research performed by the West Virginia University Coal Research Bureau under the sponsorship of the U. S. Bureau of Mines has demonstrated that coal-ash can be converted into mineral wool insulation of a quality equal to commercial grade mineral wool. An unexpected benefit has been gained due to the discovery that the usual and costly fluxing agents employed when using conventional raw materials are not required when producing mineral wool from coal-ash. Because coal-ash sources are commonly located close to mineral wool marketing areas and because mineral wool is seldom shipped far as a result of its low weight and high volume, the use of coal-ash may offer the mineral wool producing industry profitable opportunities. Moreover, coal-ash produced from experimental limestone based air pollution control processes also yields high quality mineral wool which may aid in retarding corrosion of metals contacted by the wool. In addition, internal fluxing effects and possible sulfur oxide utilization could provide economic advantages to the use of these "modified" ashes.

Jan 1, 1969

By William F. Lawrence

Within ten to fifteen years, coal-fired power generating stations will be producing over 40 million tons of coal-ash annually in the United States. The largest part of this ash will be emitted from the boilers, entrained in the off-gas stream and trapped as flyash. However, about 15 percent (six million tons) will he removed from furnace bottoms as bottom ash or molten coal-ash slag. In current practice, the molten coal-ash slap is generally water quenched and then transported either as a slurry or in granular form to storage or disposal areas. Although a small amount of this slag is marketed as abrasive grit or as roofing granules, most of it is considered a waste material which must be disposed of at considerable cost to the power companies and therefore to the public. The accom¬panying economic loss in terms of unused raw materials and displaced land is not as obvious but is just as real. The Coal Research Bureau at West Virginia University under the sponsorship of the U. S. Bureau of Mines has been examining the possible utilization of both coal-ash slag and flyash in the mineral wool industry as a method of partially alleviating the growing national problem of solid waste disposal. The potential marketing situation for mineral wool manufactured from coal-ash is illustrated in Figure 1. This bar graph depicts the growth in value of mineral wool shipments1 from 1949 through 1966. In this 17-year period, the value in¬creased by over 350 percent, more than 20 percent per year, despite a decrease in unit cost of mineral wool. It therefore appears likely that coal-ash could find a steady market as a supplement to existing sources of raw materials for mineral wool production.

Jan 1, 1970

By Kenneth M. Ritchie

Mineral wool is a term applied to man-made fibers of silicate glass with useful properties resulting from their fibrous nature. In contrast with crystalline fibrous minerals such as asbestos, mineral wool fibers are amorphous, solid filaments produced by drawing from molten liquid and subsequent cooling. Chemically they are silicate glass with varying percentages of metallic oxides, especially those of aluminum, calcium, magnesium, iron, and in glass wool, sodium, potassium and boron. Other elements such as manganese, titanium, sulfur, etc., result from their presence in the raw materials used and are not purposely added. In the United States, mineral wool is a generic term and may be applied to rock, slag or glass wool. In Europe, glass silk and silicate cotton are products in the same category, but the term mineral wool is less commonly used. Current usage is to ignore the actual source and to differentiate products on a composition basis; thus rock and slag wools have about 35-45 pct of silica, while glass wool has 54 to 60 pct. Much mineral wool of slag origin is called "rock wool," and this practice is increasing, although wool made of slag from lead or copper refining is often referred to as "lead slag wool." Its greenish-gray to greenish-black dark color, due to 5-25 pct Fe (reported as FeO), distinguishes it from "white" wools made from iron, blast furnace slag containing only 1-2 pct FeO or Fe203. Most mineral wool is used for thermal insulation against heat and cold; sound absorption and isolation are probably the next most important uses. Both its thermal and acoustic values result primarily from the physical structure of the heterogeneous mixture of fibers and air which is the form in which the fibers are first obtained and handled. For this reason, within fairly wide limits, differences in chemical composition are relatively unimportant, and for most conventional applications all types are competitive in properties and value. Mineral wool intended for extreme conditions of high temperature, acid resistance and special purposes must have a chemical composition which will insure the desired properties. This may differ greatly from that of ordinary wools; for example one product approximately 98 pct Si02 and another consisting of 50 pct A1203 and 50 pct Si02 are produced and sold for high temperature service up to 2000°F or more. These are considerably more expensive to manufacture and their cost limits their use. Historical The manufacture of mineral wool consists fundamentally of a process which subjects molten material to shear and/or tensile forces that draw them into fibers. The liquids are cooled at a rate which solidifies them quickly. As a solid glass they are technically super-cooled liquids since they have no true melting point. The drawing out of glass into thin rods, filaments and tubes was known from very early times, and present day continuous production of glass filament for textiles was evolved gradually by adapting hand methods to automatic machinery. Rock and slag wool manufacture had a somewhat different development. Early explorers reported finding filamentous material

Jan 1, 1960

By J. E. Castle

THE title of this article is descriptive, but not complete, for psychological evaluation is almost as important as rigid economic evaluation. This refers to those human traits that cause people to be too optimistic about the projects they are sponsoring, to overlook obvious weaknesses, to base decisions on incomplete and inaccurate data, and to gloss over embarrassing problems. Investment of capital in a new industrial mineral project is warranted only after rigorous economic analyses based on unquestionable facts. A plunge into production cannot be justified solely because these minerals have been deposited in the ground and are therefore free. There are no specially favorable economic laws that make the business of industrial minerals more attractive than any other. The factors of supply and demand, marketing, technological changes, taxes, competition, and fluctuating prices apply as much to industrial minerals as to other business enterprises. What is more, industrial minerals are subject to the higher risks that all mining enterprises face.

Jan 6, 1958

By G W. Scott, R C. Johnson

Hypogene alteration zones have been described as a precursor to high-grade haematite deposits in Australia, Brazil and elsewhere. This alteration is described as being below or distal and is typically magnetite-carbonate-silicates reflecting Mg - Fe metasomatism. This paper describes, without genetic implication, the mineral zonation and possible structural control on mineralogic variation within the Tilden Mine, a concentrating grade haematite deposit in Michigan, USA. In contrast to the high-grade deposits, these variations are not peripheral to the orebodies but are the ore. The deposit occurs within the Negaunee Iron Formation, along the southern margin of the Paleoproterozoic Marquette Range Supergroup basin. The regional structure is a fault-bounded west plunging syncline within the crustal scale Great Lakes Tectonic Zone, which forms the boundary between Archean granite-greenstone and gneissic terranes. Local structure consists of second-order anticlines and synclines with variable northwest and southwest plunges. The interaction of sedimentation and diagenesis within growth fault controlled basins, along with a possible metamorphic and/or hydrothermal overprint has resulted in a complex series of ore types. For modelling purposes, the deposit is divided into geologic domains based on both lithology and metallurgical response in the laboratory and in the plant. Mineralogic variation is recognised within individual mineral grains; at blast pattern (10 - 15 m) and development drill hole (100 m) scales.

Jan 1, 2007

By Will H. Coghill

The scope of this paper is such that it was deemed advisable to group the contents into several main sections. They are: Section 1. Geography and Geology. Section II. Historical Review. (a) Mining and Smelting in Alabama. (b) Milling. (c) Summary of Milling Research. These two sections are primarily a bibliography and summary of the research on the Birmingham Red Mountain ores up to the middle 1040's. Section III. Status of the Birmingham Iron Industry. This sect ion points out the extent to which the findings of the iron-ore research have been applied on a commercial scale. Also, a very brief description of the dependent and allied industries is included. The value of the Birmingham iron ore is greatly enhanced by the proximity of coal and dolomite. Thus the coal and coke industry and the dolomite industry are closely allied with and to a large extent dependent upon the possibilities of economic utilization of the Red Mountain iron ores. Section IV. Beneficiation Investigations of the Red Mountain Iron Ores. This is a record of the most recent, hitherto unpublished work of the Southern Experiment Station of the Federal Bureau of Mines, Tuscaloosa, Ala., on the chemical and physical composition not only of the Big seam but of most of the iron-bearing rock strata of Red Mountain.

Jan 1, 1946

By Max W. Ball

THE geologist or mining engineer, whose work takes him into the western United States, whether for the Government or private enterprises, is likely to be called upon to classify public lands as to their mineral character, or to review such classification already made, usually by a Government geologist or mineral inspector. The public-land law covering the matter is clear and logical, and a knowledge of its simpler principles is necessary to intelligent classification work. There are two classes of cases in which a classification of lands as mineral or non-mineral may be required: .first, cases in which lands classified as mineral will be retained by the Government and lands classified as non-mineral alienated; second, cases in which lands classified as mineral will be alienated and lands classified as non-mineral retained.

Jan 1, 1921