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By E. N. Harshman

Uranium mining and milling are rather new industries in Wyoming and South Dakota, but, in the past 15 years, ore valued at more than $400,000,000 has been mined and milled in the region. The major uranium deposits are in structural and/ or erosional basins or on the flanks of uplifts. The principal host rocks are medium- to coarse-grained sandstones that were deposited in continental or brackish-water environments and were derived in large part from the granitic cores of the uplifts and the sedimentary rocks that flank the cores. The ages of the host rocks range from Cretaceous to Miocene, but more than 95 per cent of the known reserves in the region are in rocks of early Eocene age. The bulk of the ore in the region is unoxidized and lies below the water table; some oxidized ore has been mined in the Powder River Basin and Black Hills districts. The unoxidized ore comprises pyrite, uraninite and/ or coffinite, marcasite, hematite, jordisite(?), and selenium. Minerals in the oxidized ore include hydrous uranium carbonates, phosphates, and sulfates and hydrous uranium and/ or vanadium silicates. The deposits are in the form of ore rolls that contain from a few hundred to a few hundred thousand tons of ore, ranging in grade from 0.1 per cent to 1.0 per cent U3O8. The rolls are at the margins of large tabular bodies of sandstone that has been altered by the orebearing solutions. The deposits are believed to have resulted from the interaction of an alkaline; oxidizing, ore-bearing ground water and a reducing environment. Exploration guides include the spatial relations of ore to altered sandstone, favorable lithology in the host rock, the content of certain elements and/ or compounds in ground water, and the relation of deposits to major paleodrainages.

Jan 1, 1968

By K Pery, J Leahy

Established metallurgical plants operate in a complex environment of interdependent drivers including technology change, operating and maintenance practice, evolving markets, HSEC requirements, statutory and plant requirements, personnel turnover, ore supply, and financial conditions, to name a few. A successful optimisation program should comprehend these factors and drive towards not only lower operating costs, but also higher rates of return for a given level of investment. Optimisation programs have the potential for very high rates of return on capital that Greenfield projects rarely have. This paper presents a robust strategy and methodology for plant optimisation initiatives as well as a case study of how it was implemented at the QNI Yabulu refinery in Queensland, Australia by an integrated team of researchers, engineers and operators. The methodology is premised on the fact that nobody knows the production asset as well as the current operating team. It covers the optimisation process from ideas generation, various stages of selection against the agreed criteria, development, including testwork, funding approval and implementation. It highlights the benefits in the use of integrated teams, the establishment of a sound project basis, and a diligent, phased approach.

Jan 1, 2004

The Mahakipawa gold deposit is located 21 km northwest of Blenheim. It became the site of a small hardrock gold rush in 1889 following nearby alluvial gold discoveries in 1888. The study investigates the geology of the area of hard rock mining in the vicinity between Cullens and Waikakaho Creeks. The Marlborough Schist which hosts the gold depos, it consists of polydeformed greenschist facies quartzofeldspathic psammitic, pelitic and volcanigenic schist.

Jan 1, 1993

By W. F. Mattes

The manufacture of steel rails in the United States upon a large scale may be roughly dated from the years 1875-76, and the same years witnessed an active movement among the railroads toward the adoption of heavier and improved patterns. In this movement each road was a law unto itself, and the "personal equations " of some scores of engineers were so freely injected into the calculations that patterns were multiplied in the most absurd and mischievous manner, until at length the burden upon the mills became wellnigh unendurable, and called forth a vigorous protest in Mr. Holley's paper,* read before the Institute in February, 1881. There were then regularly manufactured in the various mills of the United States, no less than 119 different patterns of steel rails, subject to current order, of which 64 per cent. were embraced under five weights per yard. Commenting upon these and other figures there given, Mr. Holley stated as the primary object of his paper, " to show that,, while this multiplication of rail-patterns is an annoyance and an expense to rail-makers, it is a source of immense loss to railway companies." Since 1876 the increase in gross annual tonnage upon our leading lines has been very great, and has been accompanied by an increase of wheel-loads and running-speeds. As the average weight of the rails of 1876 was by no means excessive, the growing deman Is of traffic have slowly driven the roads toward stiffer sections, inaugurating a movement that now promises to become epidemic. In 1876 a 67-pound rail was a first-class equipment; to-day everything under 75 pounds is light, and many 80's are coming into use. European practice has long been heavier than ours; in part because the higher cost of sleepers has led to an average of 3-feet spacing, instead of two-feet as with us. The old 84-pound double-header, and Sandberg's 80- and 89-pound rails, respectively 51/4 inches and 591/2 inches high, are reported common on English roads; and he is strongly advocating the general adoption of the 100-pounder shown in Fig. 7, with what success I have not learned, except that the Belgian government has ordered a lot. Mr. Sandberg points out the undesirability of frequent changes of pattern, and the recent rapid growth in traffic-requirements; prognosticates a continuance of this

Jan 1, 1887

By K. W. Harris, K. A. Perry

Underground coal mines beneath Black Mountain in the Harlan County district of the Central Appalachian coalfields have an extensive history of bump events, which yields an elevated probability for significant injury or fatality to underground miners. According to Mark (2009), Harlan County has had the greatest concentration of deep-cover retreat mining in the United States. Combined with the extensive multiple seam mining history, room-and-pillar coal bumps have had a disproportionate impact on coal operations in this region. The Harlan seam, one of the principal, economically recoverable coalbeds exploited beneath Black Mountain, has a significant burst history that extends into modern times. A numerical investigation using the LaModel software of 17 bumps that occurred at the same mine in the Harlan seam was conducted and used to create a calibration methodology which serves as the quantitative basis for current and future numerical efforts in an adjacent mine exploiting the same reserve. In addition to this numerical study, a qualitative assessment of the geologic factors that are believed to contribute to the bump potential was completed. Combined with stability prediction using the numerical basis, these geologic factors will be used for recognition of high bump potential areas with the goal of reducing the potential for future bumps, helping to ensure the highest level of safety and productivity for underground personnel.

Jan 1, 2016

By R. J. Snoby, M. A. Short, A. Jungmann

In processing coal, the low concentrate value requires high capacity production and sharp classification/separation techniques to reduce specific production costs. The allflux separator meets these criteria with a unique two-stage design. Through a combination of rising current and fluidized bed technologies, the allflux has extended the state of the art by expanding the particle size range that can be efficiently processed. Using concepts that have proven successful in processing concrete sands, small-scale industrial testing with coal feed stocks looks very promising. Attractive applications for the allflux are projected in fine coal recovery from old settling ponds or as a retrofit in existing fines circuits.

Jan 1, 2001

Common practice in mineral resource estimation consists of partitioning the orebody into several domains defined by grade intervals, prior to the geostatistical modelling and estimation/simulation at unsampled locations. This paper shows the pitfalls of grade domaining through a case study in which we compare the performance of several estimation schemes and demonstrate that the use of domains defined by grade cut-offs implies a deterioration of the resource estimates, mainly in what refers to precision and conditional bias. Then, several conceptual limitations of the grade domaining approach are stressed, in particular the fact that it does not account for the spatial dependency between adjacent domains and for the uncertainty in the domain boundaries. Also, this approach is shown to be sensitive to the cut-offs that define the domains, to provoke artifacts in the kriging maps, histograms and scatter grams between true and estimated grades, and to lower the kriging variance, a feature that may impact the mineral resource classification. An alternative approach is finally proposed to overcome these limitations, based on a stochastic modelling of the grade domains and a co-kriging of the grades using information from all the domains. Keywords: geostatistics, kriging, conditional bias, geological control, grade zoning.

Jan 1, 2005

By G. E. McCormack

The Development of Water Gel Explosives Water gels are the most recent development in the evolution of commercial explosives. They are replacing dynamite, having proven themselves to be excellent alternatives to this standard explosive. Water gels have steadily displaced dynamite over the past two decades. In 1959, they accounted for only 1 percent of the market they share with dynamite. By 1965, the share taken by water gels had grown to 21 percent. In 1970, it was more than 40 percent, and today it is nearly 70 percent. Black powder, the first widely used explosive, revolutionized mining and quarrying in its day. However, when nitroglycerin dynamite became available about a century ago, it rapidly displaced black powder because it provided greater energy for a given weight, much higher velocity for better rock shattering performance, and water resistance for easy use in wet conditions. During the past 50 years, ammonium nitrate has played a dramatically increasing role in explosives. First, it was used as an ingredient in dynamite, and then as the main component in nitrocarbonitrate blasting agents. About a quarter of a century ago, it began to find use in a simple and inexpensive mixture with fuel oil that has revolutionized the explosives industry and today fills about 80 percent of the requirements for explosives in the U.S., and certainly the bulk of blasting requirements worldwide. Water gels and dynamites share the remaining 20 percent. Water gel explosives based on ammonium nitrate have also been developed during the past quarter century. These explosives contain

Jan 1, 1979

Jan 1, 1923

By Karl H. Brandt

In the Auguste Victoria mine a bolted rectangular roadway has been kept open for the first time in the seam D/C after retreat. The target of the project was to gain a basis for planning and experience for future mining layouts in the same scam in view of the reuse of boated rectangular roadways. For this the roadway was additionally secured in sections with longbolts before the influence of the retreating panel had taken place. On retreat a concrete sidepack was concurrently put in place on the face side. The installed monitoring systems consisted of endoscopic devices, multiple extensometers (Tell-Tales), shear-tales, extensometers and convergence measurements. The experience that was gained was carried over into a physical and numerical model.

Jan 1, 2001

By J. A. Danko, C. D. Pears, L. D. Schmidt, J. P. McGee

This paper describes a pilot plant built on the campus of West Virginia University by the Federal Bureau of Mines station at Morgantown, West Virginia, for gasifying pulverized coal in a mixture of oxygen and steam at pressures in the gasifier up to 450 psig. The work upon which this report is based was done under a cooperative agreement between the Bureau of Mines and the West Virginia University. The goal of Bureau of Mines work at Morgantown is development of a low-cost process for producing mixtures of carbon monoxide and hydrogen for the modified Fischer-Tropsch synthetic-fuel plants, which may be shifted to produce hydrogen for coal-hydrogenation plants. Gasification with oxygen offers the inducement that the gas may be generated at the pressure at which the gas will be utilized in a gas-synthesis plant. Since the optimum pressure for the synthesis appears to be about 400 psig, the gas should be produced at approximately 450 psig to take care of pressure drops in the purification train and control valves. If the gas is generated at the pressure of utilization, only the oxygen need be compressed, not the raw synthesis gas. This means a saving in power of 5 hp per hour per 1000 cu ft (CO + H2), which is approximately a saving of 4 cents per gallon of gasoline. For example, consider a commercial plant generating 18,000,000 standard cubic feet per hour of raw gas that would produce approximately 10,000bbl of liquid product per stream-day. Assume that this gas would be 85 pd CO + H2 and that the oxygen required would be 320 cu ft per 1000 cu ft of CO + H2. The following estimate is based on a commercial centrifugal compressor. If the 18,000,000 std cu ft per hour of synthesis gas is compressed to 450 psig with 74 pd efficiency, 107,000 hp is required for compression. If the synthesis gas is generated at 450 psig pressure, only

Jan 1, 1953

By Marco Vinicio Guamán Alarcón

O modelo do Gradiente de Tensão (SG) e a Teoria da Distância Crítica (TCD) são usados para estimar o limite de fadiga de corpos de prova com entalhes alongados, e essas estimativas são testadas em C(T) modificados submetidos a tensões cíclicas de amplitude constante com uma razão de tensão R = 0.1. Os valores medidos são comparados com as previsões feitas por ambos os modelos. As previsões do modelo SG estiveram mais de acordo com os resultados experimentais. Também foi demonstrado que o modelo SG é quase equivalente à TCD no caso de entalhes com raios grandes, quando a TCD usa o método do ponto. Para o caso de entalhes afiados, os valores dos limites de fadiga previstos pela TCD são mais conservativos que os previstos pelo modelo SG.

Aug 17, 2017

By D. D. Donald

C. J. Barber (U. S. Smelting Refining & Mining Co., Salt Lake City)—In his paper Donald describes how New Jersey Zinc Co. made surveys for a connection between the Ivanhoe and Van Mater shafts at Austin-ville, Va. Except to say that the two faces had to meet "accurately" on line and grade, Donald does not indicate the required precision. Assuming that there were 24 angles in the 11/2-mile traverse and 15 in the one-mile traverse, it can be shown that if the average error in plumbing each shaft was 230" and the average error in measuring each traverse angle was 210". then the average error at the point of -connection would have been about ±1.9 ft normal to the line between the shafts. This calculation assumes that any errors in the triangulation would be negligible compared with the errors in the plumbings and traverses, and it also neglects taping errors. With no constant errors or blunders, the latter would be important only in lines normal to the line between the shafts. To make the average error at the connection less than 1.9 ft would, therefore, require either reducing the error in the plumbings to less than ±30", or that in the traverse angles to less than ±l0", or fewer stations, or a combination of these. Referring briefly to the triangulation, because of the problem of fitting a new triangulation into older surveys of the district the orientation deserved some mention, even though the connection could have been made with an assumed bearing. It would be interesting to know how many triangles were required and what the average summation error was before making any adjustments and without considering the algebraic signs. Perhaps this is referred to indirectly in the statement that the maximum angular error distributed was 2". Turning to the shaft plumbings, it would be helpful to know how many men were employed and how long each shaft was in use. Donald says that the surface positions of W-2 and W-3 were carefully surveyed from the collar position of W-1, without indicating how this was done. The length of the backsight would be particularly important. There must have been some error in setting W-1 vertically below the stations in the headframes. How immovable were the headframes, especially the Van Mater, which appears higher than the Ivanhoe and subject to more vibration because of skip hoisting? Donald does not say whether the plumbing wires had been previously restraightened to minimize spinning (otherwise they behave like weak helical springs). The use of light steel weights is most surprising because there seem to be excellent reasons for using heavier, nonmagnetic weights. Did the shafts contain no steel sets, pipes, power cables, etc., which might attract steel? The plumbing method described by Donald was designed for deep shafts in South Africa but differed from the South African practice in two important respects. As described by Browne,6 in South Africa the line between the wires was made parallel to the long axis of the shaft, whereas in the Ivanhoe shaft the lines between the wires were diagonally across the shaft. The main reason given for the South African practice is to insure that the gravitational attraction between the wires and the rock walls is the same on both wires, and therefore does not affect the bearing of the line between them. It seems probable, however, that the effect of air currents might be minimized in the South African procedure, and might be serious with the wires in the diagonal position at the Ivanhoe shaft. In the South African case cited by Donald the wires were swinging freely (although the plumb bobs were sheltered from air currents) but in the Ivanhoe case they were dampened with the plumb bobs set in water. In the discussion of Browne's paper R. St. J. Rowland said:' It has been the practice for a long time to damp the oscillations by immersing the bobs in oil or water. The time per oscillation is thus increased, thereby extending the time taken to complete the work. The longer the suspended wire the less there is to recommend the practice . . . The theoretical time for one swing of a simple pendulum 1050 ft long is approximately 36 sec, which would be increased by dampening the plumb bob in water. Hence very few complete swings would be observed in the 5 min intervals used at the Ivanhoe shaft. In the two South African cases described by Browne, the length of plumb line in one shaft was 5425 ft, the calculated period of swing was 81.6 sec, the average actual period was 76.6 sec, and 94 complete swings were observed in 2 hr. In the other case the length of plumb line was 3116 ft, the calculated period of swing was 61.8 sec, the average period was 63.5 sec, and 86 complete swings were observed in 1 hr 31 min. Browne concluded that observations of more than 30 swings are not likely to result in sufficient gain in accuracy to be justified. Returning to the Ivanhoe and Van Mater plumbings, an objection to the method used is that all four azimuths were taken from fixed points instead of swinging wires, and that each pair of observations would— barring blunders— check closely, and so perhaps give a false feeling of security. In fact, it seems that only two azimuths were obtained from one plumbing, and not four as stated by Donald. Nevertheless, the tying in of each pair of wires from both sides of the shaft has much to commend it. Donald's description leaves the impression that if each shaft was plumbed only once, the engineers were fortunate indeed if the average error in the underground orientation was as little as 30". Because the survey was done over a period of three years, it seems likely that the plumbings were repeated, perhaps more than once. The underground traverse angles were measured by conventional methods, but because the number of angles in the overlapping traverses was not given, the angular closure given by Donald does not indicate the accuracy with which this was done. Donald's description of a method of taping lines of irregular length is welcome. The literature on taping is usually confined to lines of about one tape length, generally 100 ft. Such lines are rare in metal mining because the time, trouble, and cost of setting points at 100-ft distances underground are not warranted. (Nevertheless civil engineers may go to this expense

Jan 1, 1960

By C. R. Wohrman

A MELT of pure electrolytic iron with about 0.4 per cent. sulfur and 7 per cent. manganese was prepared in connection with a study of inclusions in iron. The alloy darkened rapidly when etched with a 10 per cent. alcoholic solution of nitric acid, and microscopic examination revealed the presence of a semimartensitic, semi-Widmanstättian structure (Figs. 1 and 2) closely resembling the structures found by Benedicks in his artificially prepared "meteoric iron." 1 The structures found by Benedicks were readily explained by the presence in his alloy of the two well known iron-nickel solid solutions, taenite and kamacite, and of their eutectoid (?) aggregate, plessite. By analogy, one would infer the existence of similar phases in the iron-manganese alloy just described, such as inference being strengthened by the similarity displayed in many ways by nickel and manganese in their effects on iron. IRON-MANGANESE ALLOTS ARE REGARDED AS HOMOGENEOUS Heterogeneity of iron-manganese alloys has not been recognized heretofore, judging from the data of standard metallographic books and those of original papers. In fact, iron and manganese are quite generally regarded as completely miscible in the solid state. Dr. Rosenhain,2 for example, writes: Alloys of group (a), of which those of gold-silver, iron-manganese, and copper-nickel are examples, when allowed to crystallize sufficiently slowly to attain their condition of final equilibrium, present a microstructure exactly similar to that of a pure metal-the homogeneous character of the molten solution is in that case so completely maintained that the microscope cannot detect the presence of any second constituent.

Jan 1, 1927

By Robert Schorr

PAGE 1. Introduction,........... 82 2. Characteristics of Briquettes,........ 87 3. The Manufacture of Coal- and Coke-Briquettes,.... 89 Binders, Organic and Inorganic,...... 90 Mixing,...........94 Presses, Continuous and Intermittent Action,....95 Cost of Briquettes and Sales-Prices in Various Countries,.. 99 4. The Manufacture of Peat-Briquettes,......101 Solid Peat-Slabs,.........101 Solid, Carbonized Peat-Briquettes,......103 Estimates of Cost of Operating Peat-Briquetting Plants,... 105 5. Manufacture of Mineral-Briquettes for Metallurgical Processes,.. 108 6. Manufacture of Artificial Stone-Masses,......112 7. Bibliography,...........115 Introduction. Briquetting is apparently a very simple operation, yet it has offered so many mechanical and chemical difficulties that it required almost a century to place it on a commercial basis. Since 1860, however, the progress has been steady and satisfactory, and to-day, for most of the European coal companies, the briquette-plant is a very profitable investment. Among the many applications of scientific knowledge to further economy by recovering and utilizing by-products and raw materials, there is possibly none which deserves the attention of Americans to a higher degree than briquetting. The recent miners' strike in Pennsylvania, which resulted in a scarce and irregular supply of coal at a high price, has advanced the possibilities for briquetting, and as a consequence public interest has grown rapidly. While the manufacture of coal-briquettes is not new in the United States, adverse conditions and sometimes lack of

Jan 1, 1905

By Nasr Sheta

"After Hurricane Sandy, the stability of an earth slope in the Atlantic Highlands, New Jersey in the United States was deteriorating due to slumping soils and erosion from flooding. A slope stability evaluation indicated the slope did not satisfy the requirements of the local building code. A triple-tier, pile-supported and mechanically stabilized earth wall was designed and constructed to stabilize the slope. The construction was planned from a 3-m-wide roadway and, because of rough terrain and limited work space at the site, a cast-in-place drilled-pile construction was deemed impractical due to slow pile production. An alternative procedure was utilized by pre-drilling holes, and installing precast tip-and-shaft-grouted (PCTSG) piles, which extended to competent soils to improve slope stability. A grade beam, connecting the PCTSG piles along with soldier beams and concrete lagging were used to form the lowest tier of the slope stabilization, while the middle and higher tiers were built as mechanically stabilized earth. The stability of the proposed stabilization was analyzed using 2-D non-linear finite elements. After construction, monitoring of the wall continued for about 8 months to check its performance, and indicated lateral and vertical wall movements were less than 25 mm and 6 mm, respectively, indicating effective slope stabilization.INTRODUCTIONStabilizing earth slopes using piles to connect near-surface unstable soils to underlying stable ground masses has been investigated by many researchers, who presented various approaches to evaluate the contribution of the pile system towards improving the stability of the slope. Some of these approaches consider the piles as structural elements receiving forces from the upper sliding ground mass and transmitting these forces to the underlying stable one. The force from the top sliding mass is applied at between one third and one half of the pile embedment into the top sliding mass, Anagnostopoulos et al. (1990), Fukuoka (1977) and Matsui et al. (1988). The point of application of the sliding force was explored based on successful case histories while addressing the safety factors for both geotechnical and structural design, Vessely A. et al. (2007). The development of numerical analysis techniques utilizing the method of finite elements (FE) also enabled better analysis and design of slopes stabilized using piles. A FE-based approach was successfully utilized to design slope stabilization with target safety factor based on the shear and bending demands and the spacing of the piles, Pradel D. et al. (2010).After Hurricane Sandy in October 2012, the stability of many properties constructed atop earth slopes located along the coast of the Atlantic Ocean has become a concern due to storm-induced erosion. This paper presents the analysis, design and construction of a hybrid slope stabilization system utilized at one of these storm-impacted properties, which is located in the Atlantic Highlands, New Jersey in the United States. The subject property consisted of a two-story residential dwelling and a parking structure, and was built on top of an about 8-m-high earth slope having crest at about elevation 10 m (el 10) and toe at about el 2."

Jan 1, 1900

By Wheeler North

THE United Eastern Mining Co.'s property is located in the Oatman, Gold Roads mining district of Mohave County, Ariz. The mine and mill are some 26 mi. (41.8 km.) southwest of Kingman, the nearest railway connection. The ore consists of a mixture of calcite and quartz with some andesite. The values, which are mainly gold, alloyed with approximately 34 per cent., by weight, of silver, are extremely fine so that fine grinding is a most important factor in extraction. The milling process, briefly, consists of single-stage, coarse-crushing, two-stage ball milling in cyanide solution, followed by combined mechanical and air agitation, and by straight counter-current decantation. The Merrill zinc-dust precipitation method is used to recover the values, and is preceded by the Crowe vacuum treatment of the solution. The most notable features of the plant are the absence of filters, and the use of short peb mills loaded with steel balls, for fine grinding. As originally designed, the capacity of the mill was to be 200 tons per day, although the grinding end was to be capable of handling double that amount. By adding extra agitators and thickeners and by some alterations to the grinding end, the daily capacity has been raised to 285 tons. This, it is hoped, may be increased to 300 tons during the warm months of the present year. TONNAGE MILLED PER DAY 1917 average 234 Maximum month 272 Minimum month 146 1918 average 253 Maximum month 276 Minimum month 217 As this article primarily deals with plant operations, those interested in the mechanical description are referred to the article by Mr. Otto Wartenweiler,1 the designing engineer, which gives the details and costs of design and construction. The following changes have been made since that article was published:

Jan 8, 1919

This pamphlet and the enclosed video describe a safe, effective and economical method for removing dust from work clothes. Background Information Dusty work clothes can increase a worker’s exposure to respirable dust. Respirable dust is usually considered to be particles having an aerodynamic diameter of 10 microns or less and able to enter and deposit in the gas-exchange region of the human lung. A former U.S. Bureau of Mines report documented a 10-fold increase in worker dust exposure on a number of separate occasions from dusty work clothes.* It was found that once clothes become contaminated, they are a continual dust source until cleaned. The only MSHA approved method to clean work clothes requires a HEPA-filter vacuuming system which is very time consuming and difficult to perform effectively. Therefore, most workers use a single air hose (not MSHA approved) which can elevate dust levels for the worker, co-workers, and the work environment. A substantial amount of engineering technology has been developed that, when applied, can significantly lower respirable dust exposures of workers at mineral processing plants. But even with these improvements, some workers continue to exceed their permissible exposure limit. Elevated exposures increase the potential for developing debilitating or fatal lung diseases. ?e clothes cleaning method described within is an example of a continuing effort to reduce the potential for developing these lung diseases. Information about engineering research by the former U.S. Bureau of Mines and NIOSH can be found online at www.cdc.gov/niosh. ?is website can also be used for obtaining NIOSH information about health hazards associated with crystalline silica.

Aspiring to be excellent makes you a good leader as it shows a capability for strategic thought, defining and implementing a vision, making a job easier, more efficient and effective. Every great business leader can generate additional revenue or cost savings for their company. Becoming excellent requires the desire and action to follow it through. There are many established methods of excellence: benchmarking, target setting, supply chain and market analysis, employee suggestions and knowledge sharing forums. In BHP Billiton, practices benchmarking is a key tool in generating improvements for functional areas such as processing, mine operations and mine planning. Practices Benchmarking involves organisational and technical questions that allow the site to self-assess their maturity and generate a prioritised improvement path. Not only does it benchmark and identify gaps, but the approach also facilitates networking, education and team building. For new leaders it is important to remember that you are not alone. Chances are your problem has been solved before. Networks û internal, external, formal and informal can get you started and often save you time and effort. Any leader can achieve success in excellence through a proper process of problem formulation, data and analysis. Again, using key players can make the process more effective. It is important to remember that the people side of the solution is the key to success and that monitoring will ensure the solution will work. In the words of BHP BillitionÆs CEO, Chip Goodyear: Excellence is a mind set. ItÆs something that comes when people get rewarded forthinking outside the box and applying their skill and knowledge. It happens, not in$50 million chunks, but in hundred thousand and million and $2 million chunks.When you get 35 000 people thinking that way, then youÆve really got somethinggoing.

Jan 1, 2005

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