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By Dr. O’Neil Thomas J., Donald W. Gentry

It was a western truism that more money was made from selling mines than from buying them, just as it was accepted that many a good mine had been spoiled by working it. from R. E. White, "The Mining Town," Alta California August 18,1873 INTRODUCTION One of the most important aspects of mineral enterprises of US corporations is the influence of the depletion allowance on cash flow. This allowance permits mineral producers to claim sizable federal income tax deductions not available to other industries, and these deductions significantly increase cash flows in mining. In the past several years the minerals depletion allowance has come under increasingly heavy fire from many sectors as a tax loophole that deprives the federal government of large amounts of revenue. One estimate of the loss of tax dollars in 1968 was $2.25 billion due to depletion deductions and intangible expenses in the oil industry. Largely on the basis of such arguments, the Tax Reform Act of 1969 reduced percentage depletion rates for a number of minerals, and the Tax Reduction Act of 1975 totally eliminated statutory depletion for most oil and gas. In regard to percentage depletion for hard minerals, the federal government has estimated its resulting loss of revenue at $1.75 billion for 1980. The TEFRA legislation of 1982 further reduced the statutory depletion allowance available to iron ore, coal, and lignite beginning in 1984. Thus, it is clear that minerals engineers and managers should have a thorough knowledge of the origin, evolution, justification, and computational procedures relating to the depletion allowance. ORIGIN AND EVOLUTION OF THE DEPLETION ALLOWANCE

Jan 1, 1984

By Victor Spironello

The Bureau of Mines is studying cupola ironmel technology with the objectives of conserving high-quality raw materials through substitution and productivity. In the research re-ported here, a ize was modified by a gas-fired melting and/or ing chamber into the stack above the level of the coke bed, for study as a prototype for a coal-fired melting chamber. The modified cupola, in which natural gas was used to partially replace foundry coke, was evaluated in several trial runs. Data were obtained on furnace performance, metal and slag chemistry, and scrubber waters as particulates. Results of the modified ion were compared to those of conventional cupola operation. Although this research was preliminary--since the ultimate goal is to use pulverized coal instead of yielded ample evidence that the melting rate of a cupola can be icantly increased with less than a increase in energy input. Other evidence suggests that melting of low-density scrap can be enhanced and that scrap containing undesirable and/or oxidizable elements can be appreciably upgraded. This work is continuing and will include the use of pulverized coal of low rank to assist in melting.

Jan 1, 1984

By Madgwick J. C

Bacterial leaching of museum grade chalcopyrite and chalcopyrite concentrates at low sorptive relative humidities (55-91 per cent rH) was demonstrated. Optimum release rates were 13 and 27 mg/gram/100 days copper (Cu++) at 91 per cent and 80 per cent rH and 12 and 33 mg/gram/100 days iron (Fe++) at 80 per cent and 73 per cent rH for concentrate and "pure" chalcopyrite respectively. The optimum copper release rates occurred between 73 per cent - 86 per cent rH and 30-40 mM acid concentrations. Bacterial copper leaching rates were some twenty times slower for emersed copper concentrates, at low relative humidity, compared with submerged cultures. Bacterial copper solubilization was almost quantitatively inhibited above 150 mM acid levels (< pHO.8).

Jan 1, 1984

By E. L. Brack

ASARCO's copper smelter at Hayden, Arizona has been upgraded to meet the increasing Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA) environmental standards. Fortunately, means were found to accomplish these standards and provide for more efficient operations. With the adaptation of oxygen flash smelting and other related operations at Hayden, ASARCO has turned to the use of minicomputers and microprocessors for inter-plant communications and local area process control. The applications of distributive and computer controls to the plant operations at the Hayden smelter are discussed in this paper.

Jan 1, 1984

By Kabel J. G

While a per onnel location system is primarily used to check that nobody is left in the mine at firing time, it is also useful for contacting people, uch a foremen, shiftbosses and tradesmen, who travel over several mine levels during a shift. The system installed at The Zinc Corporation, Limited, Broken Hill, uses punched coded plastic identity tags, with "In" and "Out" tag readers on each level. When entering a level, the employee inserts his tag in the "In" reader, and when leaving, in the "Out" reader. Each reader is connected to a central computer which shows who is still in the mine and their location.The system has been used on 3 levels by 21 men for a trial period of 4 months. It ha proved reliable in an underground mining environment, and employee acceptance has been good.

Jan 1, 1984

By Pirvics AI, Whitworth NR, Tuppurainen JMI

Process control applications to the unit operations in both the Lead and Copper Smelters are reviewed. The basic aim of this control is to smooth plant inputs to produce an output of consistent quality in terms of chemical composition, temperature and physical properties. Most effort has been put into the process bottlenecks, namely in the process baghouse of the Lead Smelter and in the Copper Smelter reverberatory furnaces. The method of approach is discussed, firstly extensive plant measurement and data logging plus identification of factors which most affect the unit operation and secondly control of these factors to smooth out variations. This has been possible due to the development in-house of on-line instruments to measure the critical variables and the external use of computers for plant control. Some of these instrument developments are also briefly discussed.

Jan 1, 1984

By Douglas G. Fox

Outputs from industrial activities planned in the Riley Ridge natural gas project are modeled to determine the potential locations of air pollution impacts on the Bridger and Fitzpatrick Wildernesses in Wyoming. The nature of modeling, especially with regard to its realism, is discussed. Alpine lakes which, along with their watersheds, have minimal buffering capacity are being studied because of their sensitivity to acidic deposition from proposed new air pollution sources. A hypothesis which relates a source's emissions to deposition and lake chemistry in a worst-case sense is presented. Research designed to test the hypothesis and reduce uncertainties is outlined and progress reviewed. Focus is placed on the meteorological transport and atmospheric deposition parameterization contained in the hypothesis.

Jan 1, 1984

The design, construction and operation of a 500,000 tonne per year Carbon-In-Pulp (C.I.P.) plant at Kambalda embracing the period from 1980 to 1982 has been previously discussed (Sceresini, 1982).Since that time the annual throughput rate has increased to 780,000 tpy.This paper discusses the changes and improve-ment made to allow this increased production to occur with minimal capital expenditure.

Jan 1, 1984

By K. O. Bennington

The thermodynamic properties of hedenbergite, of composition [(Ca0,9516) (Mg0,0583Fe2+0.7134 Fe3+0.0934 Mn0,1366) (Si206)], were experimentally determined at the Bureau of Mines. The standard enthalpy of formation determined by hydrofluoric acid solution calorimetry is AHf298 = -680.96±0.855 kcal/mol. The standard enthalpy of formation from the oxides is AR-96 = -24.55±0.485 kcal/mol. Low-temperature heat capacities were determined by adiabatic calorimetry from 12.3 to 300.1 K. The derived standard entropy is S-98 - 41.218±0.148 cal/mol-K. High-temperature heat capacities were measured with a differential scanning calorim¬eter from 397 to 1,147 K. These experimentally determined data were combined with data from the literature to calculate the Gibbs energies of formation and equilibrium constants of formation over the temperature range of measurements. Standard enthalpies of formation are given as a function of temperature. The standard Gibbs energy of formation at 298.15 K is AGf298 = -641.90±0.86 kcal/mol.

Jan 1, 1984

By Alfredo Menendez, Alberto Sarmentero

A B S T R A C T The Los Pijiguaos bauxite is one of the largest accumulations of trihydrate alumina ore recently discovered; it is a plateau type, with no overburden, relatively soft tertiary quartz-bearing bauxite developed on a pre-Cambrian Rapakivi Granite batholith. The deposits are found in the northwestern rim of the Guiana Shield, State of Bolivar, Venezuela, and were discovered in 1976 after a grass-roots exploration campaign. Target areas were mainly selected on the basis of geological and geo¬morpholigcal criteria, guided by correlation with known deposits elsewhere in the Guiana Shield. The vertical. lateritic profile consists of an upper concretionary zone, followed by a mottled zone, a palid zone and finally the weathered rock merging into fresh granite. The upper concretionary zone displays a cellular, pisolitic or spongy texture and contains the following minerals: gibbsite (60-90%),quartz (5-10%), hematite (5-10%), goethite (under 5%), boehmite (traces), kaolinite (traces). The gibbsite content decreases sharply downward from the lower limit of the concretionary zone and the kaolinite and quartz content increases in the underlying mottled zone. The mottled and palid zones display a pseudo rapakivi texture and quartz, kaolinite and mica are the. essential minerals.

Jan 1, 1984

The 1981 Review: In the late 1970s there was an upsurge of interest in the prospecting and mining of this countryÆs mineral resources. That upsurge of interest was accompanied by a mounting public concern over the damage mining operations might do to the environment. Concern was also expressed about what some people perceived as inadequacies in the legislation which regulates mining and the grant of mining privileges, and inconsistencies in the relationship of that legislation to other legislation regulating land use and the use of resources.

Jan 1, 1984

By Haslam C. O, Taylor S

Four historical periods of Australian lead-zinc-silver exploration and development are identified.In the first period, 1841-1900, Australia's deeply weathered surface yielded bonanza deposits. The outcrops of easily worked secondary ores, enriched in silver and lead, were discovered by prospectors with the incentive of production at times of high silver price. Districts discovered in this period still contributed, in 1982, 60 per cent of Australia's lead-zinc production, mainly from Broken Hill.The second period 1901-1944, was one of strong mine development but stagnant lead-zinc-silver exploration. Mount Isa was discovered and developed, but otherwise effort was devoted mainly to the mining of deposit extensions and to the metallurgical flotation of zinc. The deposit discovery rate was low but the discovery of Mount Isa was so significant that discoveries of this period contributed, in 1982, 30 per cent of Australia's lead-zinc production.The third period 1945-1972 was one of re-invigorated exploration.New geological and geophysical surveys, developing concepts of ore genesis, and worldwide comparisons of orebody settings improved target area selection. Evolving remote sensing methods, and rapid analytical techniques, assisted detection of lead-zinc deposits. Initiation of exploration led to discovery:1. in regions of previously unsuspected lead-zinc-silver potential (Sorby Hills, Mons Cupri, Golden Grove).2. of poorly exposed deposits in recognized mineral districts (Hilton, H.Y.C., Woodlawn, Elura, Que River).3. during active exploration for another commodity (Brown's, Woodcutters, Mary River, Beltana, Lady Loretla and Pegmont).The period saw a sustained growth in lead-zinc-silver production mainly from established operations. Mines discovered during the third period contributed, in 1982, 7 per cent of Australia's lead-zinc production.In the fourth period from 1973 to the present, exploration initiatives became fewer but resulted in continued discovery of poorly exposed deposits at Teutonic Bore, Thalanga, Benambra, Scuddles, Hellyer, and Jillawarra. Development initiatives strengthened in the period and production commenced at Woodlawn, Teutonic Bore, Que River and Elura; pre-feasibility work commenced at Scuddles, Hilton, Lady Loretta and Thalanga.

Jan 1, 1984

By Alexandre Desbarats, Michel David

"All optimum pit design studies start from the geological are reserves inventory, the estimated grades of all blocks of potential are within the interpreted limits of the deposit. The actual optimization procedure is then carried out on block valuations based on these estimated grades. Thus, the relevance of any pit design can be seen to depend directly on the ore reserve estimation . To insure a proper pit design, a first step would be to use a geostatistical reserve estimation technique such as kriging, however, this is not enough. A frequently neglected fact is that the blocks of ore estimated during the planning stage of the mine are usually considerably larger than those on which the ore-waste selection will be made at the time of mining. Experience in the exploitation of large low-grade deposits has shown that large blocks, estimated to be are, when mined selectively in smaller blocks, often yield significant amounts of waste material. This phenomenon, known as internal waste, is a function of the variability of the grades, the size of mining unit and the amount of sampling information on which ore-waste decisions are made.In this study, it was proposed to consider the effect of internal waste caused by selective mining, on. pit design, using geostatistical methods to predict the tonnage and grade of recoverable reserves within large blocks.Optimum pits obtained using a block valuation formula taking into account the recoverable reserves within large blocks were compared with optimum pits obtained using a conventional block valuation formula. It was found that the optimum pits obtained by the proposed method had the highest total valuations and thus were, in fact, ""more optimum”. These pits were characterized by greater are tonnages at a lower average grade, the additional ore more than compensating for the drop in grade. It was also found that the consideration of internal waste in pit design could considerably alter pit limits in marginal areas of the deposit.It was concluded that selective mining had a significant, potentially critical, impact on the design of optimum pits especially in the case of large low-grade deposits."

Jan 1, 1984

By D. William Tedder

Several bauxite residue sands and muds produced by Bayer plants in the U.S. and overseas have been fractionated using dry and wet magnetic separators. The magnetic sand fractions typically contain about 60 wt% iron and the bulk of the radioactivity in this waste. The muds are more difficult to process than the sands, but some fractionation is possible using a combination of flotation and magnetic separation techniques.

Jan 1, 1984

By M. A. Mahtab

When characterizing orientations of rock joints in an engineering site with respect to mean values of the existing clusters or joint sets, a need may arise for a similarity test that allows grouping of observations from several adjacent sampling stations. Subjective judgment, though based on experience, may not produce realistic groupings in the data. A similarity test is developed in this paper for objective grouping of samples of joint orientations in engineering sites. The test is applied to the data from a large, geologically complex site of a potential open pit mine.

Jan 1, 1984

By P. G. Mason

The upswing in the price of gold in 1979 prompted renewed interest in the Mercur gold property by Getty Oil Company, owner and operator, and Gold Standard Inc. of Salt Lake City, Utah, currently retaining a 15% net profits interest. Extensive geological exploration work resumed to delineate the ore reserves, and metallurgical test work was initiated under the direction of A.H. Ross & Associates. This led to the development of an aqueous pressure oxidation process suitable for treatment of the refractory ores. Subsequent geostatistical studies revealed that the distribution of high refractory ore was less than previously estimated, and thus a higher return on investment could be realized if a direct carbon-in-leach process were used despite a sacrifice in overall recovery. This paper reviews the geological and metallurgical studies that led to this final process selection.

Jan 1, 1984

By Jon K. Ahlness

The Bureau of Mines conducted laboratory and field experiments to determine tne amount of permeability reduction in uranium sandstone after its exposure to different drilling fluids. Seven polymer and two bentonite fluids were laboratory-tested in their clean condition, and six polymer fluids were tested with simulated drill cuttings added. Sandstone cores cut from samples collected at an open pit uranium mine were the test medium. The clean fluid that resulted in the least permeability reduction was an hydroxyethyl cellulose polymer fluid. The greatest permeability reduction of the clean polymers came from a shale-inhibiting synthetic polymer. Six polymer fluids were tested with simu-lated drill cuttings added to represent field use. The least permeability reduction was obtained from a multipolymer blend fluid. A field experiment was performed to compare how two polymer fluids affect formation permeability when used for drilling in situ uranium leaching wells. For this test, the polymer fluid with the best laboratory results (multipolymer blend) was compared with a commonly used polymer fluid (guar gum) that gave poorer laboratory results. When fluid injection rates for the four wells drilled with the guar gum were compared with those for the four drilled with the multipolymer blend, no statistically significant difference was found.

Jan 1, 1984

By D. E. Moore

The strength of a natural serpentinite gouge was measured at 400°C and an effective pressure of 100 MPa. The strength of the gouge decreased with increasing pore pressure to 50 MPa and then was nearly constant between 50 and 125 MPa. The samples at 50-125 MPa pore pressure slid stably, whereas those at 3-25 MPa pore pressure showed stick-slip behavior. Lengthening the pre-heating time to 72,000 s of samples at 100 MPa pore pressure led to increases in both the strength and the likelihood of sliding unstably. With still longer pre-heating times, the strengths decreased again and sliding once more became stable. The strength of the gouge at 3 MPa pore pressure was unaffected by changes in pre-heating time. A possible explanation for the results is that excess pore pressures are being generated in the gouge, causing the true effective pressure to be lower than the apparent value.

Jan 1, 1984

By Henry J. Sandri

The use of economic models for forecasting purposes is an inexact yet necessary tool for mineral decision making. One method not commonly used is cyclical analysis because of its "non-scientific approach". However, under certain circumstances a modified cyclical approach can provide useful insight to mining companies. The current paper discusses mineral modeling, the type of economic models and the use of cyclical forecasting for mining firms (not speculators) involved in precious metals.

Jan 1, 1984

By Hermann Irresberger

SUMMARY In the German hard coal industry, relevant parameters influencing strata control have been identified in many years of intensive research work. The research results allow the formulation of the technical requirements on the design of shield supports as a function of the geological and operational conditions the face machinery is subject to. Keys to strata control are support resistance adjusted to the individual conditions of application and the tip-to-face interval. The technology to implement these requirements in actual operation is available. The automation of the shield-advance work cycle, currently setting in, can further contribute to improve strata control. In doing so, however, we must not forget the demand for an unsophisticated and low-cost design of shield supports with high operational safety. INTRODUCTION The German hard coal mining Industry produces coal from flat and inclined seams in depths between 400 and 1,300 m. The coal is exclusively won by longwall working involving face lengths up to 280 m. The thickness of the seams being worked is between 0.7 m and 4.5 m. Coal winning is fully mechanized with drum shearers or coal ploughs; two, three, or four leg shields are predominantly used as supports.

Jan 1, 1984