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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

Recent improvements are described in several techniques for ground control in underground mining. Promising methods for analysis and mitigation of rockbursts are discussed. Methods of assessing damage to underground excavations from repetitive seismic loading are reviewed. Analysis of mining-induced surface subsidence is discussed.

Jan 1, 1989

By Andrew B. Cecala, Robert J. Timko, Christopher J. Pritchard

As mine venti1ation systems become more complex, it is increasingly difficult to supply fresh air to the working face. A high percentage of the fresh air entering a mine never reaches the working face because it short circuits through stoppings and doors, exiting the mine without being utilized. When ventilation limits are reached, the only option presently available to most U.S. mines is to sink a new shaft - an extremely expensive undertaking that many companies cannot afford. Reusing or recirculating a percentage of ventilating airflow may make it possible for some mines to remain operational while maintaining a safe environment for workers. Such a study was performed at a trona mine in Granger. Wyoming. A vane axial fan was used to recirculate approximately 9.4 m /s (20,000 cfm), 25% of the total ventilating airflow, back to the working face area of a three-entry continuous miner section. This study involved two evaluations: the first when the face was 305m (1,000 ft) from the recirculation fan, the second when the face was 610m (2,000 ft) from the fan. The evaluation consisted of monitoring the mine atmosphere for respirable dust, methane (CH4). carbon monoxide (CO), and nitric oxide (NO), at various locations in the intake and return entries. Several shifts were monitored, with and without the recirculation system in operation. With the recirculation system in operation. there was an increase in measured respirable dust concentrations in the intake along with a slight increase in the mine temperature (1.67°C). There were also some minor changes in CO and NO levels in the intake entry, but this seemed to depend on the proximity of the instruments to the turn-around point for the diesel haulage vehicles, than to whether the recirculation system was or was not in use.

Jan 1, 1989

By Sneyd R. J, Walton M. C

In early 1987 Minproc acquired a license from the inventor to engineer and construct acid plants incorporating the Fattinger technology. The process offers a simple and reliable method of producing sulphuric acid from metallurgical off gases at significantly lower capital and operating costs than the more familiar contact process. The process also offers the simultaneous production of nitric acid, if the NOx content of the off gases is high enough. A development of this latter process has other applications within the minerals industry, particularly in conjunction with refractory gold ore preoxidation.

Jan 1, 1989

By H. W. Kilau

The Bureau of Mines evaluated synthetic fluorspar as a substitute for natural fluorspar flux in basic cupola ironmaking. The synthetic fluor-spars tested were prepared from waste fluosilicic acid generated during the processing of fluorapatite ore. The cupola trials showed the synthetic products to be the equivalent of natural fluorspar from an operational standpoint. However, wet scrubber sampling showed that substantial losses of volatilized fluorine occurred from the cupola during operation. The losses during synthetic fluorspar trials considerably exceeded those from natural fluorspar trials. Laboratory viscosity testing, using a high-temperature rotational viscometer, confirmed this finding and indicated that fluorspar volatility in slags is related to slag basicity. Synthetic fluorspar is accordingly recommended more for highly basic cupola operation (>1.3 basicity) than for neutral or acid operation, because of the increased potential for pollution and baghouse filter detezioration"

Jan 1, 1989

By G. Nuñez, M. A. Pathak, A. A. Afshari, C. F. Stanley

"To help evaluate the vibration patterns of an excised lung, a method is developed to determine which parts of the surface of an excised lung are responding to acoustic excitation via the trachea. Holographic interferometry, a very' sensitive technique ·that can measure movements of a few microns, is used to detect the lung surface movements.The intact lung and heart are excised from Long· Evans male rats weighing 250 gm. A tube is inserted into the trachea and connected via a funnel to a 3 inch cone speaker. The assembly is positioned in the holographic unit and excited at frequencies up to 10,000 Hz. The holographic unit contains an acousto-optic shutter used with a 0.5 watt Argon laser.The resulting reconstructed holograms contain interference fringes that are indicated of lung surface vibration.INTRODUCTIONA 1986 report by the U.S. National Committee on Biomechanics [1] describes diseases of the lung as a major national health problem. One of the recommendations of the report is for continued study of the mechanical properties of lung tissue. As an example, the report cites at least three areas that would benefit from a better understanding of the vibratory patterns or the lung."

Jan 1, 1989

By Laing W. P, Neill D. M, O&apos

The Reward polymetallic massive sulphide deposit occurs 35 km south of Charters Towers, adjacent to the Highway gold deposit (Fig. 1). It is hosted within rhyolitic lavas and interlayered volcaniclastics of the Cambro-Ordovician Mt Windsor Volcanics. Reward is a "blind" deposit discovered in 1987 after a long history of exploration by various companies in the area. The main pyrite dominant massive sulphide body occurs under 100m combined thickness of Tertiary fluviatile sediments overlying deeply weathered gossanous volcanics. The exploration case-history provides a striking example of how geological and structural models can be built up almost exclusively from drill information. Four different styles and ages of mineralisation are present: 1) volcanogenic Cu+Pb+Zn+Ag+Au massive sulphides of probable syngenetic origin; 2) remobilised Cu+Au in massive pyrite of metamorphic/deformational origin; 3) supergene and 4) oxide Cu+Au mineralisation of weathering origin. The massive pyrite body, containing chalcopyrite lenses, transects the stratigraphy and is inferred to contain in excess of 5 million tonnes. Overlying the primary mineralisation a supergene chalcocite rich zone contains a measured/indicated resource of 634,231 tonnes of 6.77% Cu which includes 287,000 tonnes of 1.32 g/t Au and 18 g/t Ag. In addition a measured/inferred oxide resource of 309,000 tonnes of 5 g/t Au and 27 g/t Ag overlies the supergene zone.

Jan 1, 1989

By H. Lyn Bourne

This is the seventh annual tabulation of royalty information. It is also the first year in which some data have been deleted to make room for new data. The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity. However, some people incorrectly believe that the selling price and the royalty are the same thing. The contract between the owner (lessor) and the mining company (lessee) is the mineral lease. Some clauses that are common to mineral leases include: identification of property, granting clause, reservations, definitions, royalty rate, taxes and title, indemnity, termination, inspection, assignability, successors, and reclamation. There often are variations in royalty rates for a given commodity that reflect differences in location, quality, market conditions or public versus private ownership. History In the time of ancient Rome, the government owned the mining properties by virtue of conquest. It would lease the mines to favored citizens who would pay rent to the State. Various conditions of sovereign ownership of both land and mineral rights continued in Europe until the Renaissance. As the laws evolved for land ownership by private citizens, the concept that minerals belonged to the State (King, Crown, sovereign) continued until about the 15th century. Free miners challenged the notion of sovereign ownership and won the right to discover and claim minerals. But a portion of their production had to be paid to the sovereign - a royalty. So, the original concept of a mineral royalty was a tax on production that was due to the Crown or Church. The term mineral royalty, as it is known today, is a payment to the owner of the mineral rights (formerly the royal owner) for the privilege of mining and producing the mineral commodity. The owner of the mineral rights, the lessor, and the mine operator, the lessee, enter into an agreement to mine the property. The agreement is the lease. While this concept is common, there are some who do not understand that the royalty is a portion of production paid to the owner as agreed on in the lease document. This author has seen reports where the selling price of a commodity has been quoted as the royalty. ("They get 70 cents a ton royalty at their pit and the guy down the road only has a 65 cent royalty.") These reports have been authored by people not familiar with the mining industry. Lease clauses In addition to the amount to be paid the lessor, there are several other items to be addressed in the lease agreement. The following list may not be all inclusive, but briefly describes most of the common clauses any good mining lease should contain. Identification: This opening clause names the owner (lessor) and the operator (lessee), the address of each, and gives the legal description of the property. Granting clause: This part of the lease gives the time period or duration of the agreement and information about renewal periods. It also has language about the exclusive right of the lessee to mine the property. Reservations: If the owner wants to exclude any portion of the property or set some specific conditions about the operation, there needs to be a clause that describes these reservations. Definitions: This section should address some of the technical terms that the lessor may find confusing - short tons versus cubic yards, dollars versus percentage of average selling price, any escalator indices such as consumer price index or producer price index, and material mined versus material sold. Royalty: This section spells out what the royalty rate will be, how often it will be paid, if there is an annual minimum, the pay dates, and how the records will be kept. This section also describes the conditions under which the lessee is exempt from the annual minimum - natural disasters, strikes, governmental actions, or other causes referred to as force majeure. Taxes and title: The lease needs to identify who is responsible for the property taxes, severance taxes (if applicable), and other taxes that relate to the mining activity - taxes on equipment, improvements, or stockpiles. This is a good place in the lease for the owner to certify his ownership of the property and its mineral rights and also certify that no other leases are in effect. The lessees may want language that allows them to pay mortgages or other debts on the property to keep their lease in effect. Indemnity: This portion of the lease identifies that the lessee assumes the risks for lessee's mining operation. Lessor should expect indemnification by the lessee through standard insur¬ance policies - workers compensation, liability and property damage. Termination: Both the lessor and lessee want language that will allow them to terminate the lease. This section of the lease describes the conditions under which one of the parties may terminate the lease (failure of the

Jan 1, 1989

By Jian Wu

In this paper, the surrounding rocks and the supports in a longwall are taken as an integral, i.e. a system. The structural characteristics and behavior of the system are discussed based on in-situ observations. A set of equations, which describe the interaction among the support, immediate roof and main roof, are developed. These equations can be used to design the longwall powered supports more reasonably and economically.

Jan 1, 1989

By F. M. Nakla

Various methods of Applied Mineralogy were used for determining the nature and composition of products yielded by flotation tests for Maghara coal beneficiation. Coal samples obtained from the Sa fa mine in Northern Sinai, Egypt, were crushed, sieved, &apos;and <32 mesh size fraction was cleaned by froth flotation. Experiments were conducted to determine the effect of certain parameters on beneficiation of Maghara coal by flotation. The investigated factors included nature of frothing and/or collecting reagents, pH value of the medium, particle size distribution in the head sample, and pulp density of the coal slurry. The quality of head samples, coal concentrates, and tailing products were determined by chemical analysis, microscopic study, x-ray diffraction analysis, and occasionally by infrared (IR) absorption spectroscopy.

Jan 1, 1989

By M. M. Zarnan

This paper presents the results of s study involving characterization of ground subsidence of abandoned lead-zinc mines in northeastern Oklahoma. Two coordinated efforts were undertaken: (1) collection and analysis of available data such as driller&apos;s logs, geologic cross-sections, structure contour naps and stratigraphic sections, and (2) development of a numerical (finite element) technique for prediction of collapse and mine subsidence. An in-depth analysis of a major collapse in the region was conducted. The factors which contributed to this collapse were identified.

Jan 1, 1989

By Susanto A

As part of the current NERDDC funded project studying Dragline/Hopper/ Crusher/Conveyor systems for overburden removal, an investigation was carried out to assess the feasibility of automating the swing-to-dump phase of the dragline digging cycle in order to main- tain consistent performance of spotting the bucket above the hopper prior to dumping. The study involved design of automatic position controls for the hoist, drag and swing drives and simulation of detailed mathe- matical models of the three electromechanical systems and their associated electrical control schemes. The design of the hoist and drag systems to position the bucket in the boom plane is relatively straightforward. Simulation results show fast and accurate performance, with no evidence of interaction between the two drive systems through the ropes. The design of the swing position control system involves special strate- gies to cater for variable inertia and to damp the pendulum oscillations of the bucket. The use of a bucket pendulum model and variable dynamic compensation embedded within the feedback control loop, along with optimal speed/angle slowdown trajectories, has yielded fast and damped positioning responses under simulation.

Jan 1, 1989

By James M. Barker

IARC classified crystal-line silica as a Group 2A (probable) carcinogen in humans. Adverse classification by IARC, which is a non-regulatory agency, is very significant because many regulatory bodies follow or consider its findings. California included IARC findings in its listing of toxic materials under Proposition 65. OSHA considered IARC findings while promulgating its regulations on hazardous air contaminants. The impact of these scientific and regulatory trends in the mineral industry will be broad. Minerals and materials bearing silica at very low levels will be affected by the "IARC threshold of 0.1% crystalline silica. The regulatory track should follow that of talc and asbestos including the emotional aspects. Silica is much more common than talc or asbestos so, in the final analysis, it may have the farthest reaching impact on industry. Permissible levels set by California and OSHA have usually been lower than industry desires but higher than environmentalists desire. This pragmatic approach will blunt the impact somewhat.

Jan 1, 1989

1. Book review . Australasian coal mining practice, edited by C.H. Martin. Reviewer: R.B. MacGilIivray This book is an extremely comprehensive coverage of coal-mining practice in Australasia, the countries covered being Australia, New Zealand,and Papua New Guinea. 2. From The Institute of Metals The folowing are available from The Institute of Metals, 1 Carlton House Terace, London SWl Y 5DB. Physical and elastic characterisation, edited by M. McLean. 1989. 228 pp. £25.00. High nitrogen steels, edited by J. Foct and A. Hendry. 1989. 461 pp. £49.50. Proceedings of the First International Calcium Treatment Symposium. 1988. 116 pp. £15. New cored-wire injection techniques, particularly as Design for recyc/ability, by Michael E. Henstock. 1988. 150 pp. £15. Solidification processing. 1988. 549 pp. £45. Marine engineering with copper-nickel. 1988. 103 pp. £18. Characterisation of High Temperature Materials. 3. New journal FMJ International Publications Lid have announced a new quarterly publication, Aluminium Today. 4. Other new publications Algorithms in real algebraic geometry, edited by Denis S. Arnon and Bruno Buchberger. London, Academic Press, 1988. 274 pp. £15.95. Proceedings, Foundry and Heat Treatment 88. R150 per set of 5 volumes, or R40 per volume.

Jan 1, 1989

By R. J. Sweigard

Differential settlement on reclaimed land presents a particular problem when the land is to be used for row crops. The poorly drained depressions caused by differential settlement restrict crop yield resulting in additional costs to alleviate the problem. Potentially more serious is the threat of failing to meet target yields due to settlement: related reductions. Because the mechanism by which the problem occurs is not well understood, a physical model study was conducted to investigate the importance of several factors. Although the importance of such factors as the relative amounts of rock and unconsolidated overburden in the undisturbed condition and the size distribution of rock fragments were considered, the analysis concentrated on the causes of settlement in the reconstructed soil layer above the rock spoil.

Jan 1, 1989

By D. C. Durgin

Located near Ely, Nevada, the Robinson Mining District has produced gold since 1868 from the Ruth? porphyry copper system. Gold occurs in at least seven different deposit types, including porphyry copper ore, silica-pyrite replacements along favorable horizons, fault controlled silica bodies, intrusive breccias, stockworks in bornfels and in retrograde skarns. In all of these the primary controls localizing gold ore are structural .preparation and permeable hosts. Indicator elements associated with gold are Ag, As, Te, and to a lesser extent Sb and Tl. Pb, Zn and F are peripheral to gold or with it depending upon position within the system. The district has produced 87,000 kg (2.8 million ounces) of gold thus far. An additional 19,300 kg (620,000 ounces) of reserves are established, and well over 31,100 kg (1,000,000 ounces) of reserves are anticipated. I

Jan 1, 1989

The Mesquite mine is being operated by Gold Fields Operating Co.-Mesquite, a subsidiary of Gold Fields Mining Corp. The mine Is located in southeastern California about 56 km (35 miles) east of the farming community of Brawley, California. The mine has been in commercial production since early 1986 and Is a conventional open pit mine developed on 6.1 m (20 foot) benches. The gold is recovered by heap leach using permanent heaps built in multiple 6.1 m (20 foot) lifts. This year&apos;s gold production will be in the range of 5,600 kg (180,000 troy ounces). Current ore production is about 18,140 tonnes (20,000 tons) per day while the total tons mined Is averaging 65,000 tonnes (72,000 tons) per day. The climate at the mine is extremely arid with rainfall of 7.6 cm (3 inches) per year. From early May until late October daytime temperatures generally exceed 37.8 degrees Celsius (100 degrees Fahrenheit) and can be as high as 37.9 degrees Celsius (120 degrees Fahrenheit).

Jan 1, 1989

By Solomon S. Katz

As more and more computer software is written for geological mapping applications, the users of the software are discovering the problems of transferring data between the programs, maintaining correct data and integrating maps produced last week with those produced today. One way to deal with these situations is by using a geographic information system (GIs). Last September the USGS and National Academy of Science held a 5-day GIs symposium on integrating technology and geoscience applications (USGS, 1988). It was followed in October by GEOTECH &apos;88 (Peters and Krajewski 1989) which had a session exclusively for GIs applications in the Geo-Sciences. Editorials in Geobyte (Leonard, 1986, 1988) suggested that geographic information systems will be the next major computer programs to be adopted by the mineral industries. As far- back is 1985, the Computer Oriented Geological Society (COGS) printed An Introduction to GIs in their newsletter (Katz, 1985). About 20 years ago, a revolutionary idea occurred in the world of business data processing. It was the idea that all related data be stored in a standard format, in a single place and that all related computer application programs would use the same data.

Jan 1, 1989

By S. Kanai

Nodular piles is to be piles provided with several nodular projections along the pile shaft, as shown in Fig. 1. Nodular piles are usually installed through either driving method with hammer or preboring method. This paper presents that the bearing capacity installed through each method is considerably higher than that of cylindrical pile without nodules. This paper also proposes the statistically analyzed unique formulae of the bearing capacity of nodular piles.

Jan 1, 1989

By Balesh W. Konda, Andrew B. Cecala, George W. Klinowski

Methane ignitions continue to be a major concern to the longwall mining industry. In spite of numerous advances in technology over the past decade, there has not been a measurable reduction in the number of longwall face ignitions. These ignitions will continue to be a problem as deeper and gassier seams are mined, as production rates are increased through numerous improvements in longwall mining equipment, and as the output of the workforce increases due to improved management-labor relations. It is necessary to know methane liberations, emissions, and flow patterns in order to effectively deal with it and to design control technology to reduce the occurrence of longwall face ignitions. A cooperative research project between the Bureau of Mines and the Canada Centre for Mineral and Energy Technology (CANMET) has been established to address longwall methane problems. The initial direction of this work was to look at methane flow patterns during the entire longwall mining process, and more specifically to examine and compare methane levels and flow patterns for advance and retreat methods of longwall mining. Both advance and retreat longwall mining is practiced in the Sydney coal fields in Nova Scotia. In 1986, a study was performed on advancing longwall panels at the Lingan Colliery, and a similar study was recently completed at the Phalen Colliery on a retreating panel. Methane monitors were placed at various locations along the face, intake, return, and bleeder airways. Handheld methane monitors were also used upstream and downstream of the shearer mining machine. This setup allowed a determination of methane sources on the longwall panels, including: liberation from cutting with the shearer mining machine, emissions from the coal seam along the face, emissions from the gob area, and methane already in the intake air. The results from both studies are reported and the differences between the two longwall mining methods compared.

Jan 1, 1989