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By James S. Redpath

"The ways of the world be many and most of the ways be tried, you follow in the footsteps of others till you come to the great divide". These words, written by Robert Service a long time ago, come to mind when I think of our original attitude upon entering into a contract with the International Nickel Company to sink the deepest shaft in the world outside of the Union of South Africa. This shaft was to be sunk to a depth of 7,137 feet from surface, and while it was recognized by all concerned to be a somewhat unusual undertaking in our part of the world, the fact that quite a few shafts had already been sunk to this depth in South Africa probably gave us the feeling that we were following in the footsteps of others. In retrospect, because this shaft was being sunk under entirely different conditions than those existing in South Africa, we were in fact venturing into an entirely new area of endeavour without properly recognizing this fact. It has occurred to me that others considering a similar type of job could benefit from our experience, especially in an assessment of the risks involved and how they compare to those encountered in an ordinary shaft. For comparison purposes, I would define an ordinary shaft as being sunk to a depth of 5,000 ft or less, and a deep shaft as one being sunk to a depth of between 5,000 ft and 8,000 ft. The sinking of the Creighton No. 9 Shaft has been de-

Jan 1, 1997

By Charles Weaver

DURING the past few years there has been considerable activity in prospecting for oil and gas in several parts of western Washington. From time to time seepages of oil or emanations of gas have been reported from various places. Several companies have been organized for the purpose of drilling, but only a part of these have actually begun operations. In certain localities very small seepages of oil occur, but up to the present time no oil or gas in commercial quantities has been obtained. In order to determine the conditions which may be favorable or unfavorable 'to the occurrence of petroleum it becomes necessary to know the character and extent of the geological formations in which such deposits might occur. In other regions where producing wells have been developed it is possible to know what formations contain the oil mind what structural conditions influence its concentration in reservoirs or zones. It is usually possible to determine those strata which contained the a materials from which the petroleum may have been derived and also the position and distribution of the more porous sandstone belts into which it may have collected. Detailed stratigraphic surveys, may even determine the depth at, which a certain known oil-bearing zone may be tapped at any particular place. It is also possible to recognize those formations which are presumably barren of oil, as well as those which are absolutely so.

Jan 7, 1915

By S. R. Crane

One Bureau of Mines goal is to minimize the undesirable environmental impacts associated with industrial plants emitting waste gases containing S02. To help meet this goal, a regenerable flue gas desulfurization process was developed. This process, known as the citrate process, uses a buffered weak acid solution to absorb S02 from the waste gas. The absorbed S02 is reacted with H2S to precipitate elemental sulfur and regenerate the solution for recycle. The H2S feedstock for the process, if not otherwise available, may be produced by reacting two-thirds of the recovered elemental sulfur with natural gas and steam. Laboratory investigations and pilot plant operations were conducted by the Bureau to determine if H2S from the natural gas, sulfur, and steam reaction was suitable for the citrate process. The laboratory investigations, in which an H2S generator was integrated with other citrate process operations, provided a basis for design and operation of the pilot plant. The objective of the pilot plant was primarily to provide H2S for the citrate pro-cess pilot plant at the Bunker Hill Co. lead smelter in Kellogg, Idaho. The design capacity of the pilot plant was 0.4 to 1.25 tons of H2S per day. The operation demonstrated that (1) a 77-to 79-dry-volume-percent H2S product could be produced from pilot-plant product sulfur, natural gas, and steam; (2) the product R2S regenerated the SO2-loaded citrate solution; and (3) under certain conditions over 95 percent of the natural gas could be converted to H2S.

Jan 1, 1981

By R. V. Ramani, K. V. Raj, S. Bandopadhyay

The air flow problems in openpit mines are complex. Computational fluid dynamics (CFD) models can provide detailed information regarding air flow pattern, velocity distribution, temperature, and pollutant concentration in an enclosed domain of an openpit mine. A range of turbulent models can be selected with varying complexity and accuracy. Pollutant transport models, however, differ in their assumptions and structure as well as in the algorithms they use. As a result, predictions vary from model to model. This paper presents a study of pollutant transport in an actual openpit mine under a stable boundary layer. The objective was to test two turbulence models using similar geometry and the same input conditions and model constants. Measured data were used to compare the results of the two CFD models, namely, the kappa-epsilon (к-є) model and the Large Eddy Simulation model. Despite the complex synoptic situations, different meteorological input data and fast-changing conditions, the simulation results from both the models were in good agreement regarding the dispersion of pollutants.

Jan 1, 2015

By J Jackson, E Sellers

Blasting related indices were developed to quantify variation in rock strength and structure for each stope, and for each lift of each stope, as part of a Mine to Mill study at an underground open stope mine. The indices were derived from combinations of data from underground diamond drilling because the simplifying assumptions contained in the block model prevented sufficient differentiation in rock mass characteristics to enable adjustments to the blast design.Application of combinations of blasting related indices enabled the identification of stopes with a high potential for inconsistent and oversize fragmentation, underbreak and overbreak. The indices also fragmentation outcomes to deliver increased material flow within stopes, better digability and predict indicative mill throughput. The stopes with issuesCalibration of the results enabled adjustments to the blast design based on the rock mass conditions and accordingly improved the blast outcomes. This enabled improved productivity by reducing underbreak and overbreak, having a more appropriate fragmentation, which reduces unplanned rock handling and improves bogging. The reduction in recovery drilling creates huge opportunities to improve output by reducing production delays and decreasing the overall cost per tonne. By understanding the explosive performance and blast energy distribution in relation to rock mass blastability poor, performing designs in blind upholes and convex stopes were identified.The conclusion of the work is that value improvement, regarding increased revenue and reduced costs, can be achieved across the whole underground Mine to Mill process chain by developing stope based indices from the existing geological information to correctly tailor the blast design to the rock within, and surrounding, the stope.CITATION:Jackson, J and Sellers, E, 2017. Blasting related indices as the key to underground blasting improvements in a challenging rock mass, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 23–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By Jin-Wei Huang, Bradley J. Fleming, Sri Sritharan

"Although soil improvement and its application to deep foundations is gaining popularity in the engineering community, this technique is not widely used in high seismic regions due to lack of fundamental understanding of both the behavior of improved soils under high-strain cyclic loading and the interactions between the pile, improved soil, and unimproved soil. This paper describes part of an ongoing Network for Earthquake Engineering Simulation (NEES) project, where two identical full-scale steel pipe piles were driven at a soft clay site in Oklahoma. The soil surrounding one of these piles was improved using the cement deep soil mixing technique in order to enhance its lateral load behavior. Both piles were tested for seismic resistance using dynamic and quasi-static loading.The pile in unimproved soil provided larger displacements with limited lateral force resistance. This pile was subjected to lateral displacements of up to 400 mm, but experienced minimum inelastic actions. On the other hand, the pile in improved soil reached its lateral capacity at a displacement of 100 mm, at which point the critical region at the base of the pile just above the improved ground experienced buckling and fractured due to low cycle fatigue. Compared to the pile in unimproved soil, the improved ground increased the system strength by 42%. Although the soil was improved over 2900 mm, the effective improvement depth was approximately 1300 mm below the ground surface.In this paper, it is demonstrated that the effects of block type soil improvement of limited horizontal and vertical dimensions can be described using a simplified theoretical approach involving a modification to the well-known p-y representation of soil response. An example using this method is presented and shown to give adequate support to a standard 12-inch diameter steel pipe pile embedded in soft soil,IntroductionPilings are the preferred foundation support for many civil engineering structures including highway bridges, railroad bridges, and port wharves. These structures and their foundations are subjected to forces created by earthquakes, wind, waves, water current, vessel impact, ice, and gravity. All loads applied to the superstructure must be transmitted to the foundation where they are resisted by the surrounding soil. With significant lateral loads, use of pile foundations may be the only solution to transmit large structural loads to competent soils. Piles supported by competent soils are relatively easy to design and costs are often attainable. However, thick layers of weak soils such as soft clays are widespread in high seismic areas (e.g., San Francisco, southern Nevada, Washington, Eastern Missouri, and Arkansas), exacerbating design challenges. Soft clays reduce the lateral resistance of the pile-soil system, making the pile foundation less cost effective. In this case, the current design practice is to use an increased number of larger diameter piles, which is a costly alternative (see SDC, Caltrans 2010). An innovative and more cost-efficient solution to this problem is to improve the soil within a short depth surrounding the foundation, thereby increasing its lateral stiffness. Some well-known methods for improving soil include deep soil mixing, stone columns, and simple soft soil replacement with select granular material."

Jan 1, 2017

By R. J. Mechin

TOP-SLICING was introduced in the Pachuca district in 1917 by T. C. Baker, at that time mine superintendent, of the Santa Gertrudis mine. There then existed 1200 ft. (365.7 m.) below the surface, lying between the fourteenth and eighteenth levels (a vertical distance of 108 meters) a block of ore having a length of 295 ft. (90 m.), and an average width of 82 ft. (25 m.) and dipping at an angle of 65°. This block lay in the hanging wall of the vein and consisted of highly altered and fractured andesite, cut through with mineralized quartz stringers. On the foot-wall side, 26 ft. (8 m.) of old filling, left by former operators, was of payable grade. Stoping therein was first undertaken by the square-set filling system, but because of the extremely heavy hanging wall and loose dry filling in the foot wall, all square setting had to be accompanied by spiling, which made the operation exceedingly slow and costly. A system of mining was sought that would eliminate the difficulties inherent to the square-set system in heavy ground and that at the same time would effect the desired economies in mining. After several years, top-slicing has met all the conditions most satisfactorily, so that when similar conditions presented themselves in El Bordo mine, this method was adopted with necessary modifications. El Bordo mine is operated by the Santa Gertrudis company, and is situated about two miles north of Pachuca. Because of the diversity of the orebodies, a number of different mining methods are in use, among them top-slicing.

Jan 10, 1925

By A. R. Mumford

During the course of an investigation conducted by the fuel section of the Bureau of Mines , on a hand- fired return- tubular boiler plant , it was found that the average cost of fuel to produce 1,000 lb. of steam was $ 0.5287 . Tests conducted after some simple changes had been made in the furnaces , and in the control of the boilers , showed the previous high cost of fuel per 1,000 lb. of steam could be reduced to the reasonable figure of $0.3540 , or the equivalent of over 30 per cent saving in fuel cost .

Mar 1, 1923

By R. K. K. Mbaya

The concept of adsorption or separation of platinum anions from base metal cations in chloride media using native or chemically modified activated carbons has been discussed in various journals within the context of batchwise systems. In our research work, a fixed-bed column, loaded with native and amine-immobilized activated carbon pellets (Norit RO 0.8), was used to study selective adsorption of platinum ions from chloride media at different flow rates, bed depth and initial metal concentrations. The kinetics, mass transfer characteristics, breakthrough data and separation factors (ß(Pt/Fe) and ß(Pt/Cr)) were quantitatively analysed and modeled. The bed-depth service time (BDST) model was used to model the breakthrough curves successfully in fixed-bed columns and also the dispersive diffusion in the radial and axial directions of the bed were evaluated. The inner diameter of the column was 3 cm and the bed depth was between 1.0 cm and 2.5 cm. Concentrated 4 M HCl acid solution was used to elute the fixed-bed column. It was demonstrated that amine-treated activated carbons provides superior separation factors between platinum and base metals (Fe, Cr). Results showed also, that 95% saturation was reached within 10~26 hours depending on the nature of ACs at a flow rate of 11 mL/min and initial concentration of 5 ppm.

Jan 1, 2014

By L. Dudley Stamp

On April 1, 1937, Burma, formerly a province of the Indian Empire, was formally separated from India and became an independent unit of the British Commonwealth. In future, therefore, statistics of oil production in India will exclude Burma and those for Burma will be separately published. The last few years have been marked by noteworthy, almost spectacular, developments in the oil fields of Burma and the Punjab. In Burma these developments have been the proving of unexpected extensions of the existing fields and not the discovery of entirely new fields. The new extensions are important not only to Burma in giving a new lease of life to her fields, but also in general as stressing some interesting geological aspects hitherto neglected. Production The production of crude oil in Imperial gallons has been: Burma India 1934 254,760,070 67,265,210 1935 251,338,974 . 71,323,362 1936 265,656,393 69,241,504 1937 (eat.) 270,000,000 70,000,000 The Chindwin Fields.—The small field at Indaw continues to produce steadily about 3,000,000 gal. a year, but no really deep test has yet been successfully carried out and resources are thus not yet fully known. The remote location of the field, inaccessible except by river and situated 22 miles from the Chindwin 270 miles up that river from its junction with the Irrawaddy, has not encouraged active exploitation. The field is worked exclusively by the Indo-Burma Petroleum Co., Ltd. (I.B.P.), using now an automatic gas-lift system, and the company formerly refined the oil at a small refinery at Pantha on the river near by. The chief market was for kerosene in upper Burma. The refinery has now been closed. The oil is stored on the field during the low-water season

Jan 1, 1938

By Hugo Cabrera-Real

This work investigated the chemical and mineralogical properties of CaO-SiO2-CrOx-CaF2- MgO slags. Synthetic slags were prepared and the effect of the slag basicity (CaO/SiO2) and MgO contents on the stability of the mineralogical species formed was analyzed. The morphology and composition of the slags were analyzed by XRD and SEM-EDS, whilst their chemical stability was evaluated by leaching with an aqueous acetic acid solution. It was found that in slags with CaO/SiO2 = 1, the main Cr-compound was MgCr2O4 spinel, which forms octahedron crystals. Small amounts of CaCr2O4 and CaCrO4 were also observed. It was found that increasing the slag basicity from 1 to 2 the compounds MgCr2O4 and CaCr2O4 were formed together with the Cr(V)-containing compound complex Ca5(CrO4)3F which forms hexagonal crystals. The results showed that the highest chromium concentration levels in the leaching liquors corresponded to slags with CaO/SiO2 = 2, probably owing to the formation of Ca5(CrO4)3F.

Jan 1, 2010

By C. V. Millikan

Production engineering has continued its rapid progress during the past year. Many engineering efficiencies long practiced in other industries are being rapidly accepted by the oil industry, and every branch of development and production work is undergoing study that is reducing the time and hazard in the drilling of wells even for greater depths, is securing better service from equipment, and is obtaining greater ultimate recovery from the reservoirs. Deviation of Drill Holes Deviation of drill holes probably has attracted greater and wider study than any other subject. Until about one year ago it had been given little attention. Some California operators knew the common magnitude of deviation, but Mid-Continent operators hesitated to believe that holes could be drilled so crooked. The great emphasis and publicity given to the seriousness of the problem resulted in the design of many instruments to record the deviation by chart or photograph. Instruments which would give the direction as well as deviation were not generally favored because of the grave fears of the legal complications which might result if the bottom of a producing well should prove to be on a neighboring lease. With all the instruments available for determining deviation, the use of etching on a glass bottle by hydrofluoric acid is still the most common method employed. The beneficial result of this earnest effort to drill straighter holes is proved by a comparison of deviation of wells completed recently with those completed over a year ago. The time of this change is arbitrarily taken as Jan. 1, 1929, as at that time the operators were aware of the deviation which usually occurred, and most of them were making some effort to reduce it. Table I shows averages of wells completed by several companies. Data on a few wells outside the greater Seminole area are

Jan 1, 1930

By Thomas L. Starks

Surface soil/spoil Samples (0-10 cm) from experimental test sites in western North Dakota were aseptically collected during August 1975 and each month (May through September) during 1076 and 1977. Selected samples were Cultured in a defined inorganic medium and after six weeks the algae were identified. Chlorophyll u content of the soil/spoil was used as a measure of the algal abundance. Soil physical-chemical properties, species variety and abundance were statistically analyzed. All test sites revealed distinct soil algal communities and demonstrated a successional trend as evidenced by significant increase, in species variety and bionmass over time. Some soil factors, calcium, copper, and phosphorus affected species variety and abundance at more than one situ. Others were important at specific sites; silicon and aluminum at the South Beulah test site; manganese sodium and zinc at the North Beulah test site No. 1 and boron, cadmium and magnesium at the North Beulah test site No. 2. Topsoiled areas had higher species varieties and abundances when compared with control areas, as did plots treated with amendments such as leonardite and fertilizer Generally.

Jan 1, 1982

By E Werner, J J. Donovan, A J. Morris

Coal mining in the Pittsburgh coal seam, in the eastern United States, began in the late-1700s. Since that time numerous mining technologies have been used throughout the basin. Environmental concerns, particularly mine discharge quality, have only been considered since the early-1970s. During the last 20 years, many of the larger underground mines have closed and are now either flooding or already flooded. In order to understand the consequences and potential future effects of this flooding, mine mapping of the basin has been compiled utilising a geographic information system (GIS) with an emphasis on locating barrier pillars between mines. Mine flooding has been monitored at numerous sites utilising pressure transducers and data loggers. These data have been combined with historical data from mining companies and structure contour maps to yield chronological flooding maps of the basin from 1980 to present. Utilising these maps and the indicated flooding rates, future discharge locations have been identified along with estimates of when these discharges are likely to occur. Related work has identified barrier pillar hydraulic conductivities and vertical infiltration rates as a function of overburden thickness. All of this information has been integrated into a groundwater flow model that simulates mine flooding. This model is useful in defining mine to mine interactions as the various mines fill with water, and the testing of various flooding scenarios. The model will be used in evaluating mine discharge rates and evaluating the options for regional mine drainage treatment.

Jan 1, 2003

Gach-Saran.—The most important development of 1937 has been the successful completion of initial exploratory wells in the Gach Saran (formerly known as Gach-i-Qaraghuli) field, about 125 miles southeast of Haft Kel. Two of these wells are rated at 33,000 bbl. per day at flowing pressures exceeding 800 lb. Drilling is proceeding with the object of delimiting the structure. Exploratory drilling is also being undertaken in several areas within the company's concession. In the producing fields the policy of controlled production has been maintained as in the past, and drilling has been limited to that required for maintenance of production and general control of the fields. Acid treatment to increase production when desired has continued to be successful in most cases. Table 1.—Crude Production in Iran Masjid-i-Sulaimana Haft Kel Total Year barrelsb Ton Barrelsb To Barrelab 1936 3,641,247 27,820,000 4,473,849 34,200,000 8,115,096 62,020,000 193P 4,375,112 33,110,000 5,693,849 43,480,000 10,068,961 76,590,000 * Net production; i.e., excluding surplus products re-injected to reservoir. 6 To nearest 10,000. " Correct to November, with an added estimated figure for December. Masjid-i-Su1aiman.—There have been no new developments in this field. The policy of returning, as and when necessary, surplus products to the reservoir has been maintained. Haft Ke1.—Drilling to explore deeper formations has been undertaken, but has not progressed far enough for conclusive results to be drawn. Gasoline retention in the crude by means of multistage pressure stabilization has been continued as in past years. Separation pressures are as follows: well-head separators, 500 lb.; central battery, 190, 85, 40, 20 and 10 lb. per sq. in., respectively. The stabilized crude is delivered to pipe line at atmospheric pressure, or ex the 10-lb. stage, in accordance with refinery requirements.

Jan 1, 1938

By Wilson B. Emery

The discovery well in the Rock River field, in Carbon County, Wyoming, came in May 1, 1918. The field is on a large anticline having more than 1500 ft. of closure and production is obtained from three sands of the Dakota group. At its peak, production approximated 10,000 bbl. daily and is now averaging 2200 bbl. Total production to Jan. 1, 1930, exceeded 12,500,000 barrels. So far as known to the writer, Rock River was the first light oil field in the Rocky Mountain region to be produced under what we now term unit operation. Though this type of operation was not popularly acclaimed by the oil industry, the Federal Government and the public until many years after the inception of development at Rock River, the officials of the Ohio Oil Co. when acquiring this property were fully cognizant of the economies to be effected by unit ownership and the consequent elimination of competitive drilling and producing of wells, and had this in mind at the time. Thus unit management was introduced in this field at an early date by this company. Area and Management Fig. 1 shows the location of all wells drilled on the Rock River structure and the outline of the productive area as now defined, which amounts to 1380 acres. The hachured line indicates the area now under unit ownership; originally a much larger area was so owned but leases have been canceled as progressive development indicated their lack of oil. The management and operation of the entire productive area is handled by the Ohio Oil Co., which owns the majority working interest. The Continental Oil Co. with a 20 to 35 per cent. interest in much of this acreage, and smaller interests owned by others in some of the leases, constitute the remainder of the ownership. The fee rests in the State of

Jan 1, 1930

By C. M. Myrick

The following notes are submitted in the belief that they may interest some of the many owners of mall water-power plants, so generally used in mining-work throughout the West. A small and somewhat primitive quartz-mill was taken over by a leasing company, and a 10-stamp battery was installed. Originally, power had been furnished by a Pelton wheel; but, since the supply of water depended on the rate at which snow was melting 011 the mountains, a steam-plant had been added to help out during cold spells. This auxiliary plant was antiquated and expensive to operate, and, soon after starting up the remodeled mill, it broke down completely; so that it became neceseary to get all the power possible out of the Pelton wheel, with its ever-varying water-supply. The pipe-line, about a quarter of a mile long, was made up of assorted sizes, from 7 to 11 in. in, diameter; and, since it was buried deep under snow, there were no data from which to calculate the theoretical size of the nozzle. The stream being at this time at a low stage, it was important to make the most efficient use of the available water. This was done by using a nozzle large enough to pass the whole supply—taking care, however, to limit the size so as not to lower the water-level in the tank at the head of the pipe-line. As the weather became warmer, the nozzles were gradually enlarged to meet the increasing volume of water; but a point was finally reached where further enlargement only gave decreased power. Evidently the loss from friction had more than balanced the gain from the increased flow through the pipe. However, the area of nozzle that developed the maximum power from the pipe-line had been found. This was used; and the surplus water was allowed to run to waste at the head of the line.

Jan 1, 1913

By William B. Conway

This paper will describe the large caisson pier foundations for four of the bridges crossing the Mississippi River in the New Orleans area; and will discuss some of the unusual problems encountered during their sinking. Certain settlement phenomena experienced during their service life will also be related: The four bridges in order of their construction: The Huey P. Long Bridge, River Mile 106.1, completed in 1935 The Greater New Orleans Bridge No.1, River Mile 96.0, completed in 1958 The Hale Boggs Bridge, River Mile 121.6, completed in 1983 The Greater New Orleans Bridge No.2, River Mile 96.1, completed in 1988 Each of these bridges employed large open-dredged concrete caissons as foundations for one or more of the river piers, with the smallest being the 65ft by 102ft caissons for Piers I and II of the Huey P. Long Bridge and the largest being the 99ft by 214ft caisson for Pier II of the Greater New Orleans Bridge No.2. The Huey P. Long caissons are founded in a dense fine sand at -170 while all of the other bridge caissons are founded in hard preconsolidated clay at elevations varying from -150 to -185. The Huey P. Long Bridge is currently being widened without increasing the caisson foundations under any of the river piers; and the design reasoning that led to this decision is presented.

May 11, 2007

By A. A. Lavrinenko, N. I. Gluhova, L. M. Sarkisova, D. V. Makarov

"The purpose of the study is to study the feasibility of using sodium diisobutyl dithiophosphinate (DDP) to enhance the recovery of platinum group elements from low-grade refractory copper-nickel ores characterized by a portion of nickel and platinum group elements (PGEs) locked in the dominant sulfide mineral — pyrrhotite. These ore characteristics dictate the need to produce a bulk PGE-containing sulfide concentrate due to the difficulties of producing selective concentrates without a significant loss of the metals.New data on the adsorption and flotation performance of DDP-containing collectors were obtained by measuring the electrode potential, hydrophobicity of the sulfide mineral surfaces and by means of extraction spectrophotometry and flotation studies. The interaction between DDP, pyrrhotite, and pentlandite leads to the formation of surface hydrophobic layers consisting mainly of disulfide and a small amount of metal compounds. These adsorption layers are formed by the reaction with butyl xanthate. In the case of cooperite, DDP reacts with the surface, forming not only disulfide, as in the case of butyl xanthate, but also a complex platinum compound. DDP-containing agents demonstrate stronger collecting properties with respect to sulfide minerals of copper-nickel ores compared to butyl xanthate, which is explained by a stronger hydrophobizing effect and foaming properties.The addition of a combination of DDP-containing agents and butyl xanthate at a ratio of 3:1 for the recovery of sulfides and PGEs in the bulk flotation of copper-nickel ore made it possible to improve the recovery of Ni, Pt, and Pd by 13.6, 9.2, and 9.4%, respectively, relative to the recovery achieved in flotation with butyl xanthate.Bulk flotation with the addition of a composition of DDP-containing agents and butyl xanthate allows the most complete recovery of all valuable elements and is the only technologically feasible method for processing of lowgrade ores, when it is impossible to produce without loss high-grade selective concentrates suitable for smelting."

Jan 1, 2018

In November 1992, the Internal Revenue Commission (IRC) was formed from the rperggr of the Papua New Guinea Taxation Of- fice (PNGTO) and the Bureau of Customs, and now has the re- sponsibility for the administration of direct and indirect taxes on a national basis in Papua New Guinea (PNG). Since that date we have undertaken many initiatives to make the new organisation more efficient and responsive to clients' needs. Income Tax The mining industry is catered for, in respect of income tax, un- der a separate taxation regime within the Income Tax Act (ITA), Division 10, as well as some general provisions within that Act as may be applicable. Division 10 is itself broken up into subdi- visions to cover the different types of mining leases, namely Spe- cial Mining Leases (SMLs) and Mining Leases (MLs), and peri- ods of time during which those sub-divisions apply. Ring Fencing Income tax assessed on the mining industry, with the exception of Mining Leases (these will be explained later), has a project basis of assessment, that is, each project is assessed separately as if the taxable income of the taxpayer from operations attributable to the project was the only assessable income derived by that taxpayer. This is often referred to as "ring fencing". This is an important point to consider because losses from unsuccessful projects cannot be set off against income from those that are suc- cessful, except in very limited specific circumstances, such as where an unsuccessful exploration licence is cancelled or surren- dered. The project basis of assessment applies to both resident and non-resident companies. A relaxation in the 'ring fence' provisions was applied from 1st January 1995, where ten percent of exploration expenditure, in- curred in areas outside of Special Mining Leases and Petroleum Development Licences in a particular year of income, can be claimed as an outright deduction which is limited to ten percent of the tax otherwise payable in that year. This was introduced to encourage exploration in PNG.

Jan 1, 1997