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By A. G. Suydam

Ancient as is the art of producing copper, so ancient is one of its eternal problems: refractories. Looking backward, in the light of present knowledge, clouded though it be, one cannot avoid a sense of profound respect for the patience, acumen and courage of those who have wrought so successfully despite difficulties, a more accurate understanding of which seems merely to accentuate. The problem of refractories arises from the necessity for constructing containers in which to bring natural ores into thermal solution in order to effect reduction and separation of the valuable metal content and free it of undesirable contamination while producing a waste slag. The very forces known to produce thermal solution of sufficient liquidity are necessarily destructive of exposed refractory linings in proportions varying inversely with thermal conductivity, directly with the porosity and ease of fluxing of the refractories used, and directly with the temperatures employed. Beyond this, mechanical forces are set up within the refractory lining incident to rapid heating or cooling, shrinkage at high temperatures, and unequal or excessive loading, that frequently pass the elastic limit, causing spalling or distortion. The effects of these forces are often accentuated by the necessity of providing at the same time as hot a bath and as cool a container as are consistent with fuel economy. Evolution in the Use of Refractories Clay Brick.—Fireclay and clay refractories had to yield wherever they were in contact with slags rich in basic oxides, first because of the combining power of those oxides with free silica and secondly because of the tendency of alumina to form either aluminates or alumina-silicates of varying complexity. Of no less importance, the incipient fusion point was low as compared with good clay brick of today, while the brick lacked strength at high temperatures. Expansion was slight, therefore it was difficult to make and maintain tight walls, roof, or bottom. However, the spalling tendency was low because of some of these properties and clay brick have retained their place in roasting furnaces, boiler furnace linings, and in the upper walls of some of the reverberatory types such as some refining, anode and wire-bar furnaces. They have served often and most efficiently for hot patching.

Jan 1, 1934

By E. Guerrini, M. Maccagni, J. Nielsen

"Lead is the most important material able to meet the current demand for energy storage. The lead acid battery is reliable, efficient and inexpensive. Continuous developments in battery construction are providing improvements in all aspects of the batteries’ performance. The lead acid battery is both the main lead product and the main raw material for lead production. More than half of the lead produced is from secondary smelters where batteries are the most important feed material. The environmental pressure on lead production has been increasing for many years, and continues to become stronger and stronger. The lead production processes and technologies themselves will require updating to meet the new regulations. Although they are very strict now, they will become even more so and current technologies may not be sufficient. Because recyclability is a strong point for the lead acid battery, the secondary smelters need to reduce the environmental impact as much as possible. In recent years, the secondary smelters underwent impressive changes in this direction, but some more improvements are possible. Electrochemistry can offer a step change improvement in making secondary lead production more environmentally friendly. Engitec has developed an electrochemical process base on a very high current density (high productivity) cell using an inexpensive electrolyte and at a relatively low cost. In this paper, the latest update on the technology is provided. INTRODUCTION The lead acid battery is considered the “walking dead” by some new technologies trying to replace it. It has played and will continue to play a very important role in our lives because it is inexpensive, fully recyclable and the existing lead and the mine reserves guaranty enough material for the extended future. According to the life cycle, the lead acid battery is the cheapest and the most effective system to store energy. Lead is practically a close loop where lead battery production consumes more than 80 % of the produced lead but contemporarily it is the most important raw material for the production of metallic lead. In fact, nowadays, the secondary production has overcome primary production and this trend is expected to continue. Primary lead is the make-up material for the existing battery production and the source of lead for the construction of the new ones."

Jan 1, 2018

By F. W. Lane

[The rapid expansion of the petroleum industry, the steadily growing use of oil fuel or steamships, the increasing transportation of oil in tankers and the extensive use of petroleum oils for many land industries, has resulted in pollution of our coastal eaters by these oils. On account of the great importance of this problem to the petroleum and shipping industries its, the Bureau of Mines, in cooperation with the American Petroleum Institute and -he American Steamship Owners Association has undertaken to ascertain the extend of petroleum oil pollution along the coasts of the United States and to indicated the principal so arcs of such pollution. Certain typical methods and devices in use and proposed for the separation of oil from water, and for the disposal of oily castes from ships and industrial plants have been studied. An attempt has also been made to point out the nature of the fire hazard resulting from oil pollution and to indicate the effect of such pollution on bathing beaches.]

Jan 1, 1924

By Christopher A. Jacobs

Project managers aim to maximise the NPV of their projects, but don't always appreciate the relationship between mine throughput, project value and the discount rate being used to evaluate their projects. Rate of production or throughput is perhaps one of the most crucial decisions a project manager must make, but if this choice is made arbitrarily, much effort may be spent on a feasibility study that does not optimise project value. The timing of the study in relation to the stage of exploration is examined and simple techniques are presented that project engineers and managers can use to home in on a production rate which will give their project the greatest chance of success.

May 1, 2006

By A. J. MacEachen

"LIKE ALL OTHER NOVA SCOTIANS, I have been thrilled during the past few years with the growing evidence that substantial reserves of oil and gas are being discovered off the Atlantic coast of Canada. There are those in this province who believe that large-scale commercial production is just around the corner, and that when it starts Nova Scotia will begin to float on a sea of royalties. These overly optimistic people, of whom I am not one, are convinced that with the first barrel of oil shipped to market, Nova Scotia can forget its financial problems while its people take on the luxurious lifestyle of the shieks of Kuwait or Saudi Arabia. You and I know, however, that even though offshore oil and gas may turn out to be the greatest gift nature has ever bestowed on Eastern Canada, it may take some considerable time before the reserves can be accurately assessed, before the industry can become fully operational, and before the benefits of production can be translated into royalties and tax revenue, improved public services, new industrial facilities and more jobs. While it is premature for the ordinary Nova Scotian to take on the habit of buying expensive cigars and lighting them with ten-dollar bills, it is not too early for him to insist that governments and industry plan intensively and well for the beneficial exploitation of undersea resources."

Jan 1, 1973

By R. Hogg, T. H. Dumm

"The mathematical treatments used in the evaluation of particle size distribution from pipet-withdrawal centrifuge data are reviewed. An error in the published procedure for multiple-sample withdrawal systems is pointed out and a corrected formulation is presented. An alternative treatment, based on a piece-wise linearization of the size distribution is described. Computer simulations of the analytical and data evaluation procedures indicate that the errors in the original formulation are not generally serious and that the corrected and alternative procedures lead to very similar estimates. Except for some cases involving very narrow size distributions, the alternative approach appears to give slightly closer estimates of the size distribution. Comparisons based on actual experimental data are also described.1 IntroductionSedimentation methods are widely used for the determination of particle size distributions. The procedures are relatively simple to use and the results are essentially absolute, requiring no external calibration. Gravity sedimentation is typically applicable to particles in the size range of about I to 50 pm and generally involves measurement of the relative concentration of particles as a function of depth and time in a dilute suspension. Particle size is calculated using Stokes, law:"

Mar 1, 1989

By K. M. Deen, E. Asselin

Hydrometallurgical processes, i.e., Cu extraction from a mineral concentrate and Zn electrowinning, are coupled in a battery-like system. A naturally-sourced CuFeS2 concentrate mixed with activated carbon is used as a positive slurry electrode separated by a membrane from the negative compartment. The Zn is deposited on the negative Al current collector from the circulating solution containing 100 g L–1 Zn2+ in 0.2 M H2SO4. In this battery-like system, both CuFeS2 oxidation and Zn deposition are possible during the charging cycle. The additional benefit of this setup is the energy storage if discharged by re-dissolving the Zn in the negative compartment. Cyclic charge/discharge testing revealed oxidation of the mineral concentrate supported by the Zn2+/Zn redox reaction. The coulombic and energy efficiencies increased monotonically to 95.6% and 43%, respectively, with approximately 7% Cu extraction during the first 10 charge/discharge cycles (completed in 2.4 hours). The discharge energy density also increased from 2.7 to 36.2 mWh L–1. In the following 90 cycles, the low energy (~14%) and coulombic (~33%) efficiencies that were obtained confirmed the progress of irreversible reactions e.g. Cu extraction from the mineral concentrate. Overall, approximately 16% Cu was extracted from the mineral concentrate over 100 charge/discharge cycles (or about 12.2 hours). INTRODUCTION Chalcopyrite (CuFeS2) is the main economic copper-bearing mineral, which is generally processed through pyro-metallurgical methods to produce Cu. However, environmental challenges with smelting, depletion of high-grade ores and a large number of impurities (some toxic) have resulted in continued research aimed at the development of hydrometallurgical technologies to process CuFeS2. There are a number of different proposed hydrometallurgical routes in the literature to treat CuFeS2 concentrates, but only a few have attained commercial acceptance (Dreisinger, 2006). Zn is another commercially important metal that is mainly produced via acid leaching of roasted sphalerite (ZnS). The pregnant leach solution is rigorously purified to remove all the soluble metal impurities, particularly those that are electrochemically more noble than Zn and present large kinetic activity towards H2 evolution (Hu & Piron, 1992; Mackinnon, Brannen, & Fenn, 1987; Mureşan, Maurin, Oniciu, & Gaga, 1996). Metal impurities such as Cu, Co, Ni, Cd, Pb, Sb, As, Ge and Fe etc., if they exist in the leach liquor beyond the tolerance limits, can decrease the current efficiency during electrowinning and deteriorate the deposit quality (Alfantazi & Dreisinger, 2001). A complete flow sheet, describing the process steps of Zn metal production from mine site to pure metal is presented elsewhere (Brown, Meisenhelder, & Yao, 1983).

Jan 1, 2019

By Jim Breedlove, Stephen P. Case, Mike Fabio

To meet salt production needs over the remaining life of the Cayuga Mine at Lansing, New York, the Salt Division of Cargill, Inc. decided to build a new underground screening plant. The new plant required a chamber 50 feet wide by 250 feet long and nearly 70 feet high. On advice of their mining contractor, Dynatec Mining Company, the company chose an ingenious excavation method similar to sublevel stoping. This method eliminated the need for an access ramp, reduced equipment needs and excavation time substantially.

Jan 1, 1996

By S. M. Hossaini, M. Ataei, H. Moosavi

The abstract highlights the importance of pillar stability in underground coal mines and the influence of rock mass strength and joint orientation on pillar behavior. The study employs numerical modeling using the distinct element code (UDEC) to investigate the impact of these factors on pillar stability. The research considers different joint orientations and varying rock mass strengths, analyzing parameters like stress distribution, displacement, and failure patterns. The findings reveal that both joint orientation and rock mass strength significantly affect pillar stability, with specific combinations leading to reduced safety factors and increased deformation. The study concludes by emphasizing the importance of considering these factors in pillar design for safe and efficient mining operations.

Apr 4, 2022

Comalco Aluminium Limited uses a computer system for cost, supply and maintenance reporting and control at its bauxite mine in Weipa, North Queensland. The system collects data on a daily basis at a high level of detail on both cost and maintenance history. This allows useful reporting to all levels of management from the shop floor to the General Manager. The most successful aspect of the system is that the information is available in all workshops on visual display units. This allows the real spenders of the Company's money, Foremen and Tradesmen, to make well informed decisions. The system has also decreased the time taken to find parts and information which gives the Foremana greater opportunity to do his real job of supervision and quality control.

Jan 1, 1983

By Babak Mamaqani, Pirooz Barar

The Moanalua trestle spanned over Moanalua Stream, Honolulu, HI and was designed to accommodate construction of five 10 feet diameter cast in drilled hole (CIDH) piers as a part of Honolulu Authority for Rapid Transportation (HART) project. Due to the proximity of piers to the existing bridge, the trestle was elevated 20 feet above grade. Stratigraphy of the site consisted of shallow depth of fill and 150 feet of loose to very loose recent alluvium (soft clay) underlain with stiff to hard old alluvium (stiff clay). CIDH casings were installed by a rotator or oscillator depending on the diameter of the piers. The challenge was to design the trestle, not only for heavy gravity loads, but also to resist significant lateral loads from rotator and oscillator with minimal deflection. Series of piles, called reaction piles, were integrated into the trestle at each CIDH pier location to provide adequate lateral support for the rotator/oscillator. Due to the lack of information regarding soil Young’s modulus (E), a methodology was developed to calibrate and calculate E with two methods. Extensive analyses using LPILE and finite element analysis program, PLAXIS, were performed to model reaction piles and calculate lateral deflection. PROJECT SPECIFICATIONS The Honolulu Rail Transit includes 20-mile route and 21 stations to be built from East Kapolei to Ala Moana Center, with $1.55 billion construction budget. The project is divided into two phases as shown in Fig. 1: Phase 1 which connects East Kapolei to Aloha Stadium with expected operation in late 2020, and Phase 2 which connects Aloha Stadium to Ala Moana Center with expected operation in 2025.

Jan 1, 2019

By T. B. Counselman

Probably the earliest concentration of iron ore in this country was carried on in the northeastern magnetite areas. Magnetic concentration was relatively simple and gave a concentrate that, after agglomeration, and in spite of being high in phosphorus because of the dry concentrating methods then in use, was satisfactory blast-furnace feed. Production from the northeastern magnetite area languished after the discovery and development of the Lake Superior ores, where there was seemingly an unlimited tonnage of high-grade ore, first the Michigan ores, and subsequently the still larger deposits of Minnesota. For years only the higher grade, direct shipping ores of the Lake Superior district were mined. Those of Michigan, and of the Vermilion Range in Minnesota, were hard ores and came principally from underground mines. The softer ores of the Mesabi came partly from underground mines, but mostly from the enormous deposits that could be worked by open-pit methods. The costs of ore from these open-pit deposits, even with the high initial cost of stripping, were so low that the underground mines of the Mesabi could hardly compete. The so-called Old Range ores, of Michigan and of the Vermilion. Range of Minnesota, were hard and lumpy, and opened UP the burden in the blast furnace, therefore making possible harder driving with greater output. Also, some of these ores were of such grade and physical characteristics that they were suitable for charge ore in the open hearth. These ores, therefore, commanded a price premium, and could compete with the softer, finer, but cheaper, Mesabi ores. The big tonnage reserves, however, are on the Mesabi. and it is these big open-pit deposits that constitute our stock pile of iron ore, from which we are drawing so heavily during this war period. On the western end of the Mesabi the ore was found to be high in silica, and not suitable as furnace feed. As early as 1902, attempts were made to concentrate this so-called wash ore and by 1910 the first washing plant was put into operation. The Process was very simple, consisting essentially of a sizing and washing operation, with scalping screens, logwashers, and tables, which later were replaced by classifiers. Ore particles finer than 100 mesh were deliberately wasted, because these fines were undesirable in the furnace. Fortunately, these tailings were impounded, and already are being reworked. Before long some of the low-grade ores began to require more elaborate treatment than the simple washing operation and, tables having been discarded because of their low capacity, in favor of classifiers, jigs were next introduced. These were able to discard coarser pieces of tailing than classifiers. jigs are in active use today, various improvements having been made in their design and application. Various other machines and methods of concentration have been tried from time to time, and have in turn been discarded for more improved processes. The latest and most important process that has been

Jan 1, 1947

By T. B. Counselman

Probably the earliest concentration of iron ore in this country was carried on in the northeastern magnetite areas. Magnetic concentration was relatively simple and gave a concentrate that, after agglomeration, and in spite of being high in phosphorus because of the dry concentrating methods then in use, was satisfactory blast-furnace feed. Production from the northeastern magnetite area languished after the discovery and development of the Lake Superior ores, where there was seemingly an unlimited tonnage of high-grade ore, first the Michigan ores, and subsequently the still larger deposits of Minnesota. For years only the higher grade, direct shipping ores of the Lake Superior district were mined. Those of Michigan, and of the Vermilion Range in Minnesota, were hard ores and came principally from underground mines. The softer ores of the Mesabi came partly from underground mines, but mostly from the enormous deposits that could be worked by open-pit methods. The costs of ore from these open-pit deposits, even with the high initial cost of stripping, were so low that the underground mines of the Mesabi could hardly compete. The so-called Old Range ores, of Michigan and of the Vermilion. Range of Minnesota, were hard and lumpy, and opened UP the burden in the blast furnace, therefore making possible harder driving with greater output. Also, some of these ores were of such grade and physical characteristics that they were suitable for charge ore in the open hearth. These ores, therefore, commanded a price premium, and could compete with the softer, finer, but cheaper, Mesabi ores. The big tonnage reserves, however, are on the Mesabi. and it is these big open-pit deposits that constitute our stock pile of iron ore, from which we are drawing so heavily during this war period. On the western end of the Mesabi the ore was found to be high in silica, and not suitable as furnace feed. As early as 1902, attempts were made to concentrate this so-called wash ore and by 1910 the first washing plant was put into operation. The Process was very simple, consisting essentially of a sizing and washing operation, with scalping screens, logwashers, and tables, which later were replaced by classifiers. Ore particles finer than 100 mesh were deliberately wasted, because these fines were undesirable in the furnace. Fortunately, these tailings were impounded, and already are being reworked. Before long some of the low-grade ores began to require more elaborate treatment than the simple washing operation and, tables having been discarded because of their low capacity, in favor of classifiers, jigs were next introduced. These were able to discard coarser pieces of tailing than classifiers. jigs are in active use today, various improvements having been made in their design and application. Various other machines and methods of concentration have been tried from time to time, and have in turn been discarded for more improved processes. The latest and most important process that has been

Jan 1, 1947

In presenting this list of permissible explosives and blasting devices, the Bureau of Mines desires to call attention to pages 19 and 24 outlining, the conditions in use under which, and only under which, the explosive or blasting device is permissible. In view of a recent publication recounting trade practice favoring the use of a blasting device without stemming, particular emphasis is placed upon condition 4 on page 19 and condition 2 on page 24. An explosive or a blasting device enumerated in the permissible lists of this Bureau is not permissible in use unless it is properly confined with clay or other incombustible stemming.

Jan 1, 1940

By Mohammed Ali Shah, Martin Waller

The mining industry depends to a large extent on the availability of high performance equipment. For drilling this means a requirement for well engineered, reliable machines with mechanised handling and widespread utilisation of automatic control. Such machines enable performance optimisation of drilling operations and integration into a high productivity mining system. A review is presented of the current status of drilling technology as applied to the mining and minerals industry. This covers developments in: drill bit materials and design; drilling techniques; machine design; mechanisation; automation; and drilling control. It also covers the ways in which current and future mining methods and practices will influence the applications and demands placed on drilling activities. The probable impact of current research on the industry is discussed.

Jan 12, 1992

By G. Jandieri

An improved methodology is presented for assessing the economic feasibility and effectiveness of recycling industrial waste. The methodology is based on the break-even control mechanism, but at the same time provides for the introduction of new evaluation criteria such as the threshold of conditionality and the degree of ore substitution. Based on an improved analysis, it becomes possible to more precisely predict recycling efficiency. A more refined determination of the lower limit of concentration of recoverable metals, at which technogenic waste can be assigned the status of secondary raw materials and processed profitably, leads to a significant expansion of the secondary raw material base suitable for recycling. The potential for recycling manganese-containing dust from the production of ferrosilicomanganese, dehydrated sludge from the hydro separation of slags, and cake from the production of electrolytic manganese dioxide at the Chiatura mining enterprise is used as an example. It is shown that with a threshold of –24% Mn content, the highest recycling efficiency can be achieved by the production of low-phosphorus manganese slag and conversion to ferrosilicomanganese using the above waste to replace 40-60% grade III and IV manganese concentrates in the feed.

Jan 26, 2023

By O. D. Sherby, J. E. Dorn

For elevated temperature-constant load creep tests of a solid solution alloys, the creep strain is a function of a temperature-compensated time parameter 0 = je H/RT dt. The activation energy H is equal to o constant of about 36,000 cal per mol. The substructures resulting from a given creep stress condition are functions of the creep strain independent of temperature. Each new creep stress gives a new unique set of grain substructures; this is one of the factors responsible for the failure of the mechanical equation of state for creep. IN this report an attempt is made to correlate the creep properties of dilute a: solid solutions in aluminum with the subgrain structures that are developed during creep. The possibilities of such correlations have already been suggested by Wood et al. and others1-" who demonstrated that the subgrain structures are functions of the creep stress, creep strain, rate of creep, and temperature. Investigations by Sherby and Dorn' have shown that the creep strain, E, at constant load for dilute a solid solutions of aluminum is given by the functional relationship: e = f(8,u,) [1] where: 0 equals te-AH/RT = temperature-compensated time; t, time; AH, activation energy, - 35,800 cal per mol; R, gas constant; T, absolute temperature, above 400°K; and u,, initial creep stress. Consequently, it was anticipated that the subgrain structure that develops during a constant load creep test should also correlate with any two of the three significant variables C, 8, and Another possible correlation between the subgrain structure and the creep variables is obtained by differentiating Eq. 1 with respect to time, whence the creep rate, 2, becomes: = (2L) (2) =f (, u,) e-AHRT [2] or: e = F (c e H/RT, 0) [3] For the minimum creep rate, ;,, 8 is solely a function of U, as revealed by Eq. 1. Consequently, at the minimum creep rate Eq. 3 reduces to: = F (eAH/RT) [41 Correlations between U, and i, eAH/RT were found valid for solid solution alloys of aluminum where AH was a constant of about 35,800 cal per mol. The parameter ;, eH/RT is identical to the Zener-Hollo-mon parameter8," used by them in evaluating the tensile properties of copper and other metals. Eq. 4 suggests that the subgrain structure developed during secondary creep might be correlatable with either of the two variables 2, e H/RT or u,. Some of the solid solution aluminum alloys which were discussed in an earlier report' were also used in the present investigation. Sheets of these alloys were homogenized, cold rolled from 0.100 to 0.070 in. in thickness and then recrystallized to about the same grain size. Their chemical composition and grain size are recorded in Table I. Creep specimens were selected with their tensile axes in the rolling direction. The details for creep testing have been described10 and will not be repeated here. All creep tests were performed under constant load conditions. Experimental Results and Discussion Metallographic Structure of Creep Specimens: In order to obtain a preliminary concept of creep on the metallographic structure of high purity aluminum, the various ruptured specimens previously used to obtain the creep data for pure aluminum were polished and etched electrolytically in a dilute solution of fluoroboric acid. Oblique illumination was used to reveal the substructures which, for convenience, are shown in correlation with the vs. ;, eH/RT curve in Fig. 1. It is necessary to emphasize that the data for the curve refer to the various secondary stages of creep whereas the micrographs refer to the fractured creep specimens. Nevertheless a regular and systematic correlation is observed between E, eAH/RT (or the creep stress) and the micro-structure at fracture. For In (e, eAH/RT) = 42.3, which refers to creep at a high creep rate and a low creep temperature, the fractured aluminum specimen, as shown by the micrograph in the upper right-hand corner of Fig. 1, exhibited extensive deforma-

Jan 1, 1954

By Yoginder P. Chugh

About 65% of the U.S. coal production (835 n tons was surface mined. A similar proportion of the Illinois basin's production (112 m tons) is also surface mined. The state of Illinois is the third largest producer of surface mined coal in the United States, after Wyoming and Kentucky. The Illinois coal basin encompasses Illinois, southwestern Indiana, and western Kentucky, as shown in Figure 1 (dotted lines). The estimated surface mineable coal resources in the basin amount to about 27 billion tons, and about 69 m. tons of coal is surface mined annually (Tab1e I).

Jan 1, 1981

By W. R. Opie

Fundamentals of blast furnace smelting of low grade copper and precious metal scrap and residues are reviewed with emphasis on emission control, by-products produced, slag cleaning for high recovery of metal values and the evolution of an off-gas system to eliminate hydrocarbons that result from decomposition of plastics in the blast furnace- charge. Problems with tin, antimony and nickel in the smelter-refining cycle are discussed.

Jan 1, 1985

By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985