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By T. Serradj

A study has been carried out to: develop a method for routine characterisation of rock strength and drillability through the particle-size distribution of crushed or drilled rock products, defined by the Protodyakonov index; establish correlations between the Protodyakonov index, uniformity coefficient and the constant grading equations; and propose an alternative rock characterisation index to classify rock strength and drillability for the northeast region of Algeria

Dec 1, 1996

By D. Roberts

SUMMARY In order to accommodate a new plant in a limestone quarry in the Mendip Hills, it became necessary to excavate a potentially unstable disused face of the quarry. A simple two-dimensional graphical method was used to analyse a failure, which occurred during a period of exceptionally heavy rain in 1968, and the results of this analysis were used in estimating the stability of the proposed excavation. The presence of water in vertical fissures and tension cracks was found to be a dominant factor in determining the stability of these faces. The results of this approximate analysis were used as a guide in deciding upon the final slope design and the purpose of presenting this example is to illustrate how the various factors involved in arriving at this design were weighed to arrive at a compromise between theoretical recommendations and practical considerations. INTRODUCTION The successful outcome of a geological and geochemical survey to prove adequate re- serves of high quality limestone, suitable for producing burnt lime, led to planning for the installation of the necessary plant at Amalgamated Roadstone Corporation's Batts Combe Quarry at Cheddar in Somerset. Topographic and property boundary limits added to restrictions which were likely to be imposed by any forthcoming planning consents and restricted the choice of plant location to one site. The particular site is, in fact, the main floor area of the original quarry which, like many hillside quarries, had been worked with just one face. Before a benching scheme had been introduced on higher ground, the original face had attained a height of 230 ft. and sloped at angles of 58º to 64º. Fig. I shows the present configuration of the disused quarry face and the present working area above. The floor area below the disused face accommodates the existing crushing, conveying, and screening plant. The new facilities for lime burning are to be in addition to the existing main line business of producing roadstone and concrete aggregates and, although a new aggregate production plant would be included in the new installation, no disturbance of current production was to be contemplated.

Jan 1, 1972

By Paul A. Beck, M. N. Parthasarathi

The vecrystallization texture. formed by selective growth of random nuclei in an 80 pct volled 99.997 pct A1 crystal of initial orientation mear (123) (41.21 was found to consist of components related to the single-component rolling texture by 40 deg. rota-tiows around [111]axes. The relative-volume fractiovz of the various recrystallization-texture componezts may be accouzted for 012 the basis of the Lou) mobility of twist boundaries, if it is assumed that the mobility of the tilt boundaries also varies with their orientation. Similar results with a, aluminum-alloy cystal of the (110) [112] orientation, containing iron, silicon, and zinc, show that these solute contents do not impair the effectivezess of the oriented growth mechanism of re cry s-tallization- texture formation. In a previous investigation1,2 it was found that a sharp recrystallization texture is formed as a result of the oriented growth of random artificial nuclei in an aluminum crystal rolled to 80 pct RA, on the (110) plane in the [ 112] direction. Four recrystallization-texture components were found to occur, with orientations corresponding to 40-deg rotations around [111 1 axes of the deformation texture. Reorientations of this type were already found in earlier work,3,4 where the presence of random nuclei could be reasonably assumed, but was not rigorously documented. The same orientation relationship was found also by Lucke and Liebmann, who actually measured the orientation dependence of boundary-migration rates in the recrystallization of A1 crystals slightly deformed in tension.5,6 The occurrence in the recrystallization texture of only four of the eight crystallographically equivalent orientations of the type referred to above remained unexplained,1,2 although it was clearly not a result of the absence of suitable nuclei. Recently Burgers7 suggested that this effect may be due to the aniso-tropy of boundary mobility observed2'6; it was found that the recrystallized grains of the 40-deg [111]-rotated type grow much faster in directions perpendicular to the [ 111] they have in common with the matrix than parallel to this direction, i.e., the tilt boundaries have much higher mobility than the twist boundaries. The four orientations corresponding to

Jan 1, 1962

By Milton Camino Ramos

El presente texto describe la geología local, estructural, metalogenia, mineralización y alteración hidrotermal, prospección física y resultados de la exploración realizada en El Gigante( La Libertad, Perü) como yacimiento orogénico de carácter mundial. Por ello, el objetivo es generar un modelo que integre geología, mineralogía, cronología y geoquímica de dicho yacimiento que permita mejorar el entendimiento de los procesos de formación de los yacimientos orogénicos de la franja metalogenética de Pataz y oriente al descubrimiento de nuevos recursos minerales.

May 1, 2017

By Wojciech Naworyta

The development of the Gubin lignite deposit, located in western Poland is the first mining investment of this magnitude in 30 years. Gubin is the second largest prospective lignite deposit in Poland, with over one billion tonnes of indicated reserves, which would be sufficient for a 2700 MW power plant for almost 50 years. The paper presents select problems related to the mining development of Gubin deposit. Attention has been paid to changes in legal and formal requirements for mining investments that were introduced after the change of Polish social and economic system. The significance of spatial, environmental and social conditionings has been emphasized. Typical attributes of the mine planning process have also been presented. Those include the long time horizon of the investment, uncertainty of external conditions and resulting difficulties in the project?s economic evaluation. Focus has been placed on mutual connections between particular elements of the project and time dependence during the process of their development. Iterative characteristics of the design process have been proven, together with resulting necessity of frequent verification of previous assumptions. As a background for presenting selected problems related to future development of Gubin lignite deposit, the methods of design have been discussed ? the variants method, the empirical method and the method of consecutive approximations. The tools and the possibilities of their use for solving specific problems related to mine design of an open pit have been broadly discussed. The chapter in which the authors relate to the specific problems of Gubin deposit development constitutes the main part of the paper. It depicts the assumptions on which the annual production and the total extraction of lignite during life-of-mine period have been based. The process of mine designing has been discussed, taking into consideration environmental, geotechnical, spatial, social and mining conditions. The criteria for choosing the location of the opening cut and the external dump have been mentioned. In the summary, the present state of mine design progress has been presented, together with some problems that will need to be solved during the next stages of the deposit?s development.

Aug 1, 2013

By Wen Xuan

Concentrados ?midos de minério de ferro podem se congelar durante o inverno e ficarem presos nos vagões de transporte, dificultando o descarregamento e a operação. Este problema vem sendo observado nas minas de Kryvyi Rih, Ucrânia e Mont-Wright, Canadá, onde o minério de ferro possui respectivamente 10,5% e 3,5% de umidade e, durante os invernos rigorosos, as temperaturas podem chegar a valores abaixo de -20°C. Nestes locais, uma grande quantidade de energia e tempo tem sido gasta para aquecer e descongelar os vagões. Este artigo mostra que polímeros superabsorventes, como o poliacrilato de sódio, podem evitar o congelamento e facilitar as operações de descarregamento e manuseio, além de possuír fácil aplicação, sendo eficientes quando aplicados apenas no fundo dos vagões, sem a necessidade de se misturar o polímero com o concentrado de minério de ferro.

Aug 17, 2017

By M Norbert, D O’Connor

The mainline running tunnels for Legacy Way comprise two tunnel boring machine (TBM) driven tunnels. Both TBM drives commenced at the Launch Portal adjacent the Mt Coot-tha Road. Excessive surface settlement arising from tunnelling would have had a significant impact to the road infrastructure. The geological structure above the tunnel springline is a mixture of fill, residual soil and weak rock. Given the combination of low ground cover and weak ground materials, along with the use of an open face TBM, an oversize pipe umbrella system has been installed above the tunnels. This pipe umbrella system is similar to that commonly adopted in conventional mined excavation support in soft ground except that the steel pipes are substantially larger in geometry and filled with concrete. It is acknowledged that similar systems with oversize pipe umbrella have been adopted elsewhere in the world in other projects. These systems often comprise of a full arch formed by conjoining oversize steel pipes (in contact only). By aligning the pipes in contact, the arching behaviour of the steel pipe would have been enhanced. However, this poses a degree of construction difficulty due to excavation and installation method of the pipes. The Legacy Way pipe umbrella system only consists of a partial arch at the tunnel crown and each pipe is spaced approximately 1200 mm apart with 900 mm diameter pipe, leaving a gap of approximately 300 mm between pipes. A reinforced concrete portal block was used to support the exposed ends of the pipes.This paper reviews the design analysis, the recorded deflections from the pipe umbrellas and surface monitoring during TBM launch and revisits the analysis using the newly available RS3 program, from Rocscience for 3D analysis of geotechnical structures.CITATION:Norbert, M and O’Connor, D, 2014. Starting the journey – launching of the Legacy Way open face tunnel boring machines in mixed face ground conditions, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

In subterranean mining operations, access to communication networks deep underground is critical for transporting data, voice and video, and other supporting applications that are essential for efficient and safe operations. Whether accessing sophisticated ERP or maintenance management systems, engaging in fleet management, video surveillance, or access control, or protecting miners with wireless locator systems, these networks serve as a literal lifeline between workers deep within mines and surface operations. For this, mining networks require more than permanently installed network cabling, it also requires unique deployable systems designed for quick installation, extension and even relocation as the active mine site area moves, or equipment is moved in and out.

Mar 1, 2014

By Márcia Maria da Silva Monteiro Pereira

Flúor é muito usado em pós de molde aplicados no lingotamento contínuo de aços. Embora o flúor seja importante no comportamento de fusão, infiltração da escória e cristalização do filme de escória, ele tem algumas desvantagens uma vez que o flúor reage com a escória, produzindo substâncias como NaF e SiF, as quais, por sua vez, reagem com a água no resfriamento secundário, formando HF. Estas desvantagens levam a severa corrosão do maquinário e risco para a saúde dos funcionários da usina. Por isto, é necessário remover o flúor dos fluxantes. Pó fluxante para lingotamento de placas livre de flúor está sendo desenvolvido como resultado de uma parceria entre fornecedor de pós fluxantes e a siderúrgica. Relacionado a isto, matérias primas alternativas para substituir F na composição dos pós fluxantes foram investigadas. Pesquisas indicaram B2O3 como substituto em potencial de flúor para escórias de molde. Os testes industriais, feitos em uma siderúrgica brasileira, foram realizados com o objetivo de analisar seu comportamento durante a operação de lingotamento contínuo em aços de baixo carbono. Parâmetros tecnológicos como: absorção de inclusões, espessura da piscina líquida, consumo de pó fluxante e índice de erosão da válvula submersa foram monitorados durante o lingotamento contínuo com o objetivo de avaliar o desempenho do pó e de fornecer informações sobre sua influência na qualidade da superfície do aço. Os testes industriais de lingotamento de aços baixo carbono revelaram uma boa qualidade de superfície e redução na erosão da válvula submersa. Outros parâmetros estão em estudo.

Jul 30, 2018

By R. Fahn

Bentonites are best suited for the preparation of acid activated clays with efficient adsorption properties. They are weathering products of acid volcanic ashes and natural deposits are spread worldwide. The main constituent of bentonite is aluminum hydrosilicate montmorillonite with a high ability to swell. Physical and Chemical Properties of Montmorillonite The clay mineral montmorillonite is named after its place of discovery, near Montmorillon in southern France. The structure of this clay is shown in [Fig. 1]. The montmorillonite crystal consists of about 15-20 silicate plates. Each silicate plate is composed of three layers. The central one is formed by aluminum or by ferric hydrate octahedrons, the two outer ones consist of silicon dioxide tetrahedrons. In the presence of water, the montmorillonite crystal swells and water molecules become deposited between individual silicate layers. Two types of natural bentonites are known: the Western type, which is a natural sodium bentonite (high swelling grade), and the Southern type, an alkaline earth or calcium bentonite (low swelling grade). Southern bentonites have efficient adsorption properties of their own. They are called natural active earths or fullers earths. Acid Treatment of Bentonite Under the influence of a mineral acid, the exchangeable alkaline earth ions of bentonite are substituted by hydrogen ions. Moreover, depending on the acid concentration, temperature, pressure, and reaction time, a more or less pronounced leaching process takes place. Thereby Al-, Fe-, and Mg-ions are extracted from the octahedron layers. This results in a change in the crystalline structure of montmorillonite and in an increase of its specific surface area and porosity, as shown in [Fig. 2].

Jan 1, 1983

By D. R. Maneval

The vast coal resources of North Slope, Alaska, can be expected to attract substantial interest because the nearly flat-lying coal beds of the coastal plain are specially amenable to surface mining. Mining on a scale large enough to justify coal development in this area could have severe environmental effects. The mitigation would be uncertain because large-scale coal mining and reclamation operations have not been carried out in the arctic. The deficiency of the scientific data base is another factor that requires consideration if coal mining has to develop in accordance with the objectives of PL 95-87. The objective of this paper is to establish the inter-relationship between the problems due to permafrost and factors in reclamation of post-mining land in order to find ways to transform nature in a rational and purposeful manner and to suggest specific reclamation approaches that may be appropriate in this region.

Jan 1, 1987

By S. M. Moon

Today, underground exploration is spotlighted as an infinitely developable area. For this purpose, many tunneling technologies were created. And until this very day, many techniques are being developed for more efficient underground movement. Although previous technologies have been developed and now being used in various forms like TMB, struck propulsion method and hydraulic propulsion method, it is hard to find a robot type exploring in small scale. But development of small scale underground exploration robot is a promising research subject for its usage in examination of soil, mineral, and subterranean resources, investigation of hazardous regions, and the military. So we developed a robot that can dig and move underground, inspired from the motion of earthworm and mole cricket. Earthworm and mole cricket dig the soil in the front and draw it off backward, so that they can move forward. We developed a mechanism that uses 2 rotating solid of revolution (bits) for pulverizing the firmly united soil in the front and put it inside the body. The bits rotate in the opposite direction of each other. While moving forward, the soil in the front moves along the spiral on the bit and is saved inside the body. The soil saved inside is taken out through an outlet in the back by a ventilation system. The ventilation system on the ground blows through a hosepipe connected to inner part of the robot and the air blows off the soil. The moving mechanism of exploring underground can be classified into 2 parts. One is to fix the blade link on the soil in a form of 4-bar link. The other one is to move forward rotating the whole link. When the blade link system for movement rotates a certain degree, one blade link is fixed, while the other one is folded in. When 2 blade links of different length rotate as it is, different torque is applied on each link. By the law of action and reaction, the link that has larger torque leads the rotation and movement.

Aug 1, 2013

By Ziebell, Howard A.

THE Washington magnesite deposits, located in the hilly and mountainous northeastern part of Washington, occur as massive lenses in a sedimentary series made up of dolomite, shale, and quartzite, into which basic dikes have intruded. The ore pattern resembles a series of disconnected chain links extending approximately 25 miles in a south-west direction. Magnesite in this district is all crystalline and closely associated with dolomite, talc, serpentine, and basic dike rock. All deposits which have been developed are near the surface so that quarry-bench mining has been possible. For over twenty years hand sorting magnesite ore at the quarry face was standard practice. Ore cars were hand trammed on 30-lb rail systems which led from the face to ore passes or raises for the magnesite ore and to the waste dumps for disposal of the rejected waste material. This system was somewhat modified by the use of Dempster Dumpster trucks. The ore was, however, still sorted by hand from the calcium and silica bearing waste rock. Power equipment. consisting of one 3/4-yd electric shovel, was

Jan 1, 1949

By William Clark

A bean placed at the bottom of tubing in flowing wells is not a new idea. In fact, a device which in effect was a bottom bean was patented prior to 1890 by John D. Rockefeller. Because of the limited use of the bottom bean, prior to 1922, when it was installed in a few wells in the Santa Fe Springs field, California, the knowledge of the results of its operation is very meager. Since then various oil operators have experimented with bottom beans, but most of the records of the results obtained by their use are unavailable. For the past year or two, more attention has been directed to this method of producing wells; the theory and best means of application have been studied, and accurate records maintained. In theory, the use of bottom beans in flowing or gas-lift wells should secure certain advantageous results. With the exception of flow friction of the tubing and flow lines, there is no back-pressure held on the rising column of fluid. Thus severe beaning is possible with no danger of killing the well by too heavy a fluid column, a condition that often exists when a surface bean is used. The whole energy of the gas expanding to atmospheric pressure is utilized to lift the fluid in the well. The same effect is obtained when flowing a well through open tubing or casing. In using a surface bean this energy of expanding gas is wasted into the flow lines beyond the bean, because the fluid has reached the surface by the time the restriction is reached and the work of the gas performed. The bottom bean affords an efficient use of the expanding force of gas, utilizing less gas to raise the same amount of oil, hence allowing for lower gas-oil ratios. The flow restriction being at the entrance to the flow string, a more uniform mixture of gas and oil enters the tubing and a steadier backpressure is held on the well. The uniform mixture and high velocity attained while flowing through the bean, which is above the critical velocity required to suspend a spray condition of gas and oil, prevent slippage of gas, surging and heading with its resultant strain on the casing. The advantageous conditions allow positive control of production in gas-lift wells within limits set by the bean size and amount of input gas; and probably help to prevent sanding up of a well and the coning

Jan 1, 1931

By J. E. Moyle

Introduction In October 1983, Rio Algom Ltd. decided to develop the East Kemptville tin deposit. This decision was the result of intensive geological and metallurgical evaluation work, as well as careful studies of environmental and marketing aspects. The property is located about 54 km (34 miles) northeast of Yarmouth, Nova Scotia, near the village of East Kemptville. Geology The geological setting is a granitic intrusive at the contact with metasediment. The tin mineralization is in the form of cassiterite (SnO2), which is about 80% tin. Sulfides are associated with the deposit containing silver, copper, and zinc, which are recoverable as byproducts. The mineralization is associated with quartz veins and greisen alteration. In the center of the deposit, the zones are so close together they have the appearance of a massive or porphyry type deposit. Ore Reserves The mine plan is based on 56 Mt (62 million st) at 0.165% tin. Up to the ninth year, mill feed will average about 0.2% and lower grade material will be stockpiled. In later years, the average grade will be 0.16% tin. A 0.08% cutoff grade is planned for the entire 17 years of production. East Kemptville is a relatively low grade tin deposit, and only a combination of favorable circumstances has made it economic. • The ore body is situated at, or very close to the surface, permitting mining by open-pit methods at a very low stripping ratio. • The tin occurs in relatively large crystals that allow for good recovery by gravity techniques. • It is ideally located in a well-settled area, with all essential infrastructural requirements already in place. • The positive and cooperative response from various governmental agencies involved are encouraging. Mine Plan The mine plan incorporates an initial pit, followed by three expansions to the ultimate pit. Mining will be at 14 kt/d (15,000 stpd) and will include 9 kt (10,000 st) of ore plus 5 kt (5,500 st) of waste and low grade. After five years, the mining rate will increase to 21 kt/d (27,500 stpd). It is planned to drill vertical 165-mm (6.5-in.) blast holes on a 6-x 6-m (20- x 20-ft) pattern. Bulk slurry explosives will be used to break the rock. Loading will be with hydraulic shovels into 70 t (77 st) haulage trucks. The trucks will deliver the ore to a 13 x 20 m (42 x 65 ft) gyratory crusher, where it will be crushed to 150 mm (6 in.). Secondary and tertiary cone crushers will be used to further crush the ore to 13 mm (0.5 in.). Process Design Tin extraction technology is practically unknown in North America, but Rio Tinto Zinc, which has a 53% ownership in Rio Algom, is involved in tin production in the UK. Rio Algom has used this experience and expertise in metallurgical evaluation work and in tin-related aspects of plant design. Mineralogical and metallurgical test work have been performed, both on laboratory and pilot plant scales. Mineralogical work was done largely in the UK, the laboratory test program was carried out at the Lakefield research facility in Ontario, and pilot plant work was conducted in Australia. This program has resulted in significant improvements in recovery and concentrate grades, over best projections that could be made before this work was carried out. Concentrating Process The concentrator is being designed to process about 9 kt/d (10,000 stpd). The first step is to reduce the size of the ore to -700 µm (-24 mesh) in a rod mill/ball mill grinding circuit. The ball mill will operate in closed circuit with high capacity banana-type screens. The screened product will be deslimed to 30 µm (560 mesh) with cyclones, then passed over the pri-

Jan 4, 1984

By Leon E. Esparza

In 1985, at the request of the U.S. Bureau of Land Management, the U.S. Bureau of Mines studied the 16,927-acre Pryor Mountain Wilderness Study Area (MT-067-206), part of the 3,955-acre Burnt Timber Canyon Wilderness Study Area (MT-067-205), and part of the 4,550-acre Big Horn Tack-On Wilderness Study Area (MT-067-207) to evaluate their identified mineral resources. The Burnt Timber and Big Horn Tack-On study areas contain 3,430 and 2,550 acres, respectively. The three areas are in Carbon County, MT, and Big Horn County, WY, about 13 miles north of Lovell, WY. No identified resources exist in any of the study areas. Bureau of Mines personnel reviewed literature, searched county mining records and examined prospects, claims, and mineralized areas to determine whether identified mineral resources existed. The three study areas are within the Pryor Mountain unorganized mining district. U.S. Department of Energy production records indicate there were 223,000 pounds of uranium oxide (U308) and 236,000 pounds of vanadium pentoxide (V205) produced from 19 properties within the mining district. The average ore grade was 0.36 percent [3,600 ppm (parts per million)] U308 and 0.416 percent (4,160 ppm) V20S. Only the Pryor Mountain study area has current claims, the 50 claims of the S0S group.

Jan 1, 1986

By H. K. van Poollen, H. C. Bixel

A treatment is given of the transient pressure behavior of a well located at the center of a circular region surrounded by a radial discontinuity. On either side of the discontinuity, the values of permeability, viscosity, compressibility and porosity are uniform but may be different from those on the other side of the discontinuity. The results are obtained by solving a pair of finite difference equations. The numerical solution to these equations is obtained using a digital computer. The results are compared with previously published, approximated analytical solutions to the same problem. Solutions, presented graphically, show pressure decline for constant rate fluid production. The range of variables studied include dimensionless time from '0.001 to 100 and storage capacity ratio from 0.001 to 1,000. The well behaves as if it were in an infinite reservoir for dimensionless times less than 0.25. Reservoir properties near the well can be estimated in the usual manner. An overlay technique is used to match an experimental curve with one of the theoretical curves. It is possible to estimate the distance to a discontinuity by substituting the actual time t and the corresponding dimensionless time tD at which a match occurs into the equation a = (0.000264 tk1/tD , µ1 cI)I/2 where kI/ I µI cI is the diffusivity near the well, and may be estimated from data taken at early time. Several buildup curves are computed. These curves show that for early shut-in times, correct values for transmissibility are obtained from conventional analysis. However, erroneous values of static reservoir Pressure are obtained unless data at large shut-in times are taken. INTRODUCTION A mathematical treatment of the transient pressure response of a well located at the center of a region bounded by a circular discontinuity is given. Within a region (Fig. 20) the properties of both the rock and the fluid are considered to be constant on either side of the discontinuity. While these properties are considered constant, they may be different on opposite sides of the discontinuity. A discontinuity of this type could be a fluid-fluid contact or a sudden change in rock characteristics such as thickness, porosity or permeability. Analytical solutions to this problem are available. 1-3 However, they are so involved that they are of little practical use. An approximate solutionl is available but the range of times over which it is valid has not been specified. A numerical solution to a pair of finite difference equations is used to obtain the solution given in this paper. PREVIOUS WORK One of the first solutions to the problem was published by William Hurst.1 Hurst considered unsteady-state flow of fluids through two sands in series with different mobilities in each sand. He used Laplace transforms to obtain a solution for a single well located at the center of the circle enclosing the first of the two sands. In this case, the solution for the pressure change in Region I (Fig. 20) is2

By T Mahlangu

The leaching of gold in alkaline aqueous cyanide solutions may be reduced significantly by the passivation of the gold by a surface layer of polymeric aurocyanide. This passivation of the gold is typically countered by the presence of Pb(+2) species in solution, which may be present as an impurity in the solution, or specifically added for this purpose. The speciation and availability of Pb(+2) in typical cyanide leach solutions is illustrated as a function of pH, and the presence of S(-2), S(+6), Cu(+1) and Ag(+1) species. The probable role of the Pb(+2) species in efficient gold leaching is discussed.

Jan 1, 2007

By K. E. Merklin, F. D. DeVaney

Students of the modern blast furnace seem unanimously agreed that they are observing a major revolution in practice. Rather than changing construction and operation of the furnaces, most of the great advances now under way deal with the raw materials feed. Prepared burdens have gained increasing significance during recent years. Sizing, concentration, and agglomeration have all become bywords to greater production and reduced operating costs. The remarkable results with test furnaces in which self-fluxing sinter makes up part or all of the ore charge foretell even greater improvements. Other investigators have reported many of these advances, and it is enough to predict here that more and more operators will turn to the use of self-fluxing sinter.

Jan 3, 1960

By R. D. Brown

In the spring of 1977, Revenue Canada announced its intention to proceed in 1978 with a plan to impute a taxable benefit on interest-free and low-interest loans provided to employees. Such loan arrangements are often an important aspect of the compensation packages provided by many companies to their employees. Since the original announcement, there have been many submissions to Revenue Canada opposing this change, and the Finance Minister has now brought down a compromise solution with the introduction of a proposed amendment to the Income Tax Act. The amendment, which would not take effect until the 1979 taxation year, would require an employee, a shareholder or a related person to include a benefit in income measured as the difference between the interest on any such loan computed at bank prime rate and any interest actually paid. Only the amount of such a benefit in excess of $500 in a particular year would be required to be included in income. Of particular interest is the exclusion from these benefit rules of loans up to $50,000 in respect of the purchase of a house on the relocation of an employee and loans provided for the purchase of shares of an employer corporation.

Jan 1, 1978