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By Jun Han

Coal has been mined in the Kailuan mining area for more than 130 years. The remaining reserves consist of, in large part, coals that would have been considered economically unminable or technically not feasible by the previous generations. Some of the current operations have to resort to overmining because the lower seams had been extracted in the past. This paper deals with the feasibility and proper layout of mining roadways of overmining carried out in the No. 5 seam of Qianjiaying coal mine of Kailuan mining area using numerical and physical simulation. FLAC2D was used to investigate the characteristics of stress and displacement in the overburden after extraction of the lower seams. It also analyzed the proper layouts of gateroads in the upper seams, i.e. locating them in the stress-relief zone of the gob so that their stability can be easily maintained. In addition, a two-dimensional physical model was constructed for investigation of damages to the upper seams due to mining of the lower seams. Finally, based on the results of investigations, proper gateroads layout was designed and successful extraction was implemented for panel 1357 in the No.5 seam.

Jan 1, 2009

"The successful commissioning and ramp up of the Albion Process™ at the GPM Gold Project relied on the successful scaling up of the process from batch and continuous pilot plant campaigns (Voigt et al., 2015). Critical information about reaction kinetics and residence time, grind size and pulp density were determined at the laboratory scale and successfully applied to the commercial scale. A limitation of small scale testwork, is that some parameters cannot be measured reliably and scaling up is a function of the physical size of the equipment which isn’t possible to test with laboratory scale equipment. Oxygen mass transfer rate is one such parameter since this is a complex interaction of many factors including slurry temperature, solution and slurry chemistry, slurry viscosity, agitator type, dimensions and power, oxygen bubble residence time, oxygen purity, tank geometry and oxygen injection technique. Oxygen generation represents an important operating cost for the Albion Process™. Pivotal to the Albion Process™ operating economically at atmospheric pressure is the capability to efficiently transfer oxygen while utilising as much oxygen injected to the process as possible. To respond to this Glencore Technology developed the HyperSpargeTM supersonic gas injector. This paper compares the HyperSparge™ against other sparging techniques to quantify the benefits of oxygen injection via a supersonic gas jet on scale up of the oxygen mass transfer system. The paper then examines plant survey data from the GPM Gold Project to demonstrate the very high oxygen utilisation that can be achieved with a correctly designed oxygen mass transfer system.INTRODUCTION One of the main challenges in chemical reactor design is the scale-up of processes from the laboratory to industrial scale. Processes which cannot be faithfully simulated with an experiment at the laboratory scale face challenges due to the physical dimensions and complexity of full scale operation. One example of this is the design of oxygen mass transfer systems in atmospheric oxidative leaching circuits such as the Albion Process™. A number of constraints associated with the use of laboratory scale equipment to design full scale circuits are involved in gas mass transfer processes in agitated slurries such as the Albion Process. Chiefly, typical laboratory and pilot size equipment lacks the required volume to provide useful design data without relying on empirical correlations: the specific agitator power input is artificially high, the bubble residence time in the vessel is artificially low, the oxygen partial pressure at the base of the vessel is artificially low and the oxygen delivery method may differ significantly to the industrial process. Further, the dynamic nature of the process introduces additional impacts on gas mass transfer, including the presence of solids, recycle streams and minor elements, plus the variances within the reality of a process plant such as disruptions or variance of feed quality."

Jan 1, 2017

By R. A. Franks

An evaluation of a nuisance-emissions-discriminating smart mine fire sensor system was made in an operating coal mine. These field evaluations were conducted to determine the sensor system?s ability to discern nuisance emissions, such as diesel exhaust, emissions from flame cutting and welding operations or hydrogen gas from a charging station, from real fires and to compare the number of falsely reported fire alarms generated between the sensor system and a standard carbon monoxide (CO) monitor. The sensor system?s ability to operate successfully in the working environment of an operating coal mine was also evaluated. The smart mine fire sensor system consisted of four sensors whose data outputs were fused with the use of a neural-network-type computer program. Long-term trials were conducted in a haulage way, a belt entry, and a track entry. The system functioned successfully in the belt entry, in accordance with its developmental goals, where the sensor system even discriminated events not anticipated during development. It was not totally effective in the haulage way and track entry, though, due to a combination of significant diurnal air temperature variations, dust, and mechanically induced vibrations. Also, deteriorating rib conditions contributed to operational problems in the haulage way evaluation. In general, the smart mine fire sensor provided nuisance emissions discrimination and was shown to be a viable new approach for mine atmospheric monitoring, enhancing miner safety. This paper describes the in-mine evaluation of the smart mine fire sensor system and discusses recommendations for improving the system. Disclaimer: The findings and conclusions in this report are those of the authors and do not necessarily represent the views of the National Institute for Occupational Safety and Health.

Jan 1, 2008

By A Hanna

Quarries around Auckland have reached or are reaching the ends of their lives, which raises issues about rehabilitation. Significant volumes of 'cleanfill' are generated by the City, particularly during phases of urban renewal and development. Emplacement of the fill in quarries removes the problem of fill disposal and provides an opportunity for restoration of the quarry site.There is a compatibility between quarrying and cleanfilling because at quarries:Truck routes are already established Neighbours are accustomed to the effects and appropriate buffer distances have been established Bringing fill into a site attracts aggregate sales and is very efficient. Fill originates from construction sites and ad-hoc excavations and therefore it is not surprising that sampling has shown the quality to be variable. Both Winstone and the Auckland Regional Council have surveyed undisturbed soils in the region to attempt to determine natural background levels of common contaminant substances. Comparison of these levels with delivered fill shows that a high proportion of delivered materials can be regarded as mildly contaminated. Therefore the term 'cleanfill' is, in the Auckland region at least, a misnomer and the term 'managed fill' has been adopted.Historically and presently the only control on quality of 'cleanfill' has been some visual inspection. This leaves the fill operator open to potential liability for creating a contaminated site. Implementation of controls at WinstoneÆs operations has progressed slowly, over some ten years. This is mainly due to the perception that mobility of contaminants within and out of the landfill will be very limited because of the near-neutral pH and abundance of clay minerals in the fill. The methods of control and results of environmental risk assessments at WinstoneÆs Puketutu Island Quarry will be briefly described.

Jan 1, 2002

By C. W. Arnold, H. L. Stone, D. L. Luffel

The purpose of this research is to determine (I) the efficiency of small banks of enriched gar driven by methane in displacing oil from a porous medium and (2) the effects of variation in bank size and composition of that efficiency. Most of the experiments were conducted in a sand-packed tube 20-ft long and 1/2-in. in diameter. The hydrocarbon system generally used was methane, butane and decane at 2,500 psia and 160°F. The results of these experiments indicate that, in the regions contacted by the gas, a small bank of an oil-miscible gas driven by methane can displace all of the oil in a piston-like manner. If the enriched gas is of such composition as to remain immiscible with the oil, displacement of oil is less efficient than for the miscible case, and the gas bank travels through the sand with a velocity less than that of the driving gas. These data along with theories discussed imply that smaller banks and less total gas are required when the enriched gas and oil are miscible. INTRODUCTION Widespread application of enriched-gas drive to the recovery of oil rests upon a key factor — the use of limited quantities, or "banks", of enriched gas. At the present time, the value of liquefied petroleum gas or other enriching agents discourages their use in a continuous injection technique, or even in a large bank, except in a few isolated reservoirs. If small banks of enriched gas driven by methane were as effective in displacing oil as is continuous injection, the enriched-gas drive process might be applied to a larger number of reservoirs. Previous research on the mechanics of the enriched-gas drive process reported by Stone and Crurnpl and by Kehn, Pyndus and Gaskell has utilized continuous injection of enriched gas. This work has shown that two types of displacements occur. With gases containing sufficient intermediates. the oil is displaced misciblv and complete recovery is obtained from the regions swept. When gases are used which contain insufficient intermediate hydrocarbon for miscible displacement, oil is displaced immiscibly. In the latter type, selective solution of the intermediate hydrocarbons causes a swelling and reduction in viscosity of the oil and leads to an increased recovery over that obtained by dry-gas (methane) drive. The size of the enriched-gas bank necessary for efficient displacement of oil is determined by those factors which cause deterioration of the bank. A differentiation may be made between those factors which operate on a microscopic scale and those which act on a macroscopic scale. On the smaller scale, the enriched gas mixes in the direction of flow by diffusion and convection with the fluids immediately preceding and following it. On the larger scale, the gas may by-pass the oil by flowing through permeable streaks, by overriding the oil because of density difference, or by fingering because of unfavorable viscosity ratios. In such cases, the enriching material tends to mix with the oil both laterally and in the direction of flow. The increase in effective area available for diffusion and dispersion of the enriching components leads to a faster degradation of the bank and a need for a larger bank than is necessary for those cases in which no by-passing occurs. The effects of such macroscopic factors in the deterioration of enriched-gas banks have been reported in a separate paper by Blackwell, Terry and Rayne. The present study was confined to the factors which operate on the smaller scale, in particular to the behavior of banks of enriched gas in sands uniformly swept by the gas. Experiments were designed to answer the following questions. 1. Can small banks of enriched gas driven by methane be used to secure oil recoveries comparable to those obtained by continuous injection of enriched gas? 2. What is the optimum bank size (the minimum bank size necessary to obtain a recovery comparable to that obtained by continuous injection of the same enriched gas)? 3. How many total pore volumes of gas must be injected to obtain the maximum recovery when the optimum bank size is used? 4. What is the effect of varying the number of enriching components in a gas bank? This report describes the experimental investigations and discusses the results in terms of their significance to reservoir behavior.

By M. E. Gershon

Conventional methods of drill hole site selection are reviewed briefly. Two approaches using geostatistics are then discussed, both of which have been shown to yield improved results. Finally, a branch and bound algorithm is described which will select the best locations for drilling from a user specified number of possible drill sites. Two options are discussed. First, the user can specify a maximum drilling investment or a maximum number of drill holes and the program will select the locations yielding the minimum estimation variance. This amounts to getting the most for a given investment. Alternatively, a maximum tolerable estimation variance can be specified and the program will select the number and location of the drill holes to obtain the desired information at a minimum cost. Another benefit of the approach is the quantification of the tradeoffs between investment and information obtained.

Jan 1, 1985

By D. B. Dreisinger, D. G. Dixon, G. Nazari

"The kinetics of chalcopyrite leaching in acidic ferric/ferrous sulfate media under atmospheric conditions in the presence of pyrite has been investigated. It has been found that pyrite samples from different sources affect the rate of chalcopyrite leaching differently. A strong correlation between the amount of silver associated with the pyrite and its effectiveness has been noted. In this study, improvement of the catalytic properties of pyrite such that all pyrite samples accelerate the rate of copper extraction regardless of their sources is demonstrated, and a detailed discussion of the mechanisms involved in the process of chalcopyrite leaching in the presence of silverenhanced pyrite is presented. INTRODUCTIONIt is well known that chalcopyrite resists leaching in sulfate media. It has been proved that pyrite facilitates the leaching of chalcopyrite (Berry et al., 1978; Dixon et al., 2008; Mehta and Murr, 1983; Muñoz et al., 2008; Nowak et al., 1984, Tshilombo, 2004). Considering the catalytic effects of pyrite on accelerating the kinetics of chalcopyrite leaching, Dixon and Tshilombo (2005) have developed a new process, known as Galvanox™, which has several advantages over other hydrometallurgical processes. Galvanox™ runs under atmospheric conditions, so it requires only low-cost leaching tanks. The sulfur yield at this temperature is high (>95%) which leads to low oxygen consumption and low sulfuric acid generation. The operating temperature is below the melting point of sulfur which eliminates the use of surfactants. This process also does not require fine grinding. Reaction 1 shows the overall leaching reaction in the Galvanox™ process.CuFeS2 + O2 + 2 H2SO4 = CuSO4 + FeSO4 + 2 S0 + 2 H2O (1)Complete copper recovery from the Galvanox™ process can be achieved at a considerably higher rate than other atmospheric ferric sulfate leaching processes (Dixon et al., 2008). Recycling pyrite and recovering copper from tailings with the Galvanox™ process have also been evaluated in continuous pilot leaching campaigns (Dixon et al., 2007)."

Jan 1, 2012

By William D. Hissem

While much technology has been developed and brought to bear in the area of blasting applications, the foundation work required for success in the muck pile begins with the drilling program.

Jan 1, 1997

"The following articles were produced through funding under Generic Mineral Technology Center for Respirable Dust research. Full articles appear in the proceedings, 3rd Symposium in the Mineral Industries, published in 1991 by the Society for Mining, Metallurgy and Exploration, Inc.Personal Diesel Exhaust Aerosol SamplerV.A. Marple, K.L. Rubow, and Y. TaoParticle Technology, Mechanical Engineering Department, University of Minnesota, Minneapolis, Minnesota(Section ill. Diesel I: Diesel Particulate Measurement, pp. 73-81)Abstract. Techniques are being developed for measuring the mass concentration of respirable diesel exhaust particles found in underground coal mines. Studies have been conducted over the past five years to investigate size selective 18Dlpling techniques to measure the respirable mass concentrations of diesel exhaust and mine dust aerosol particles in underground coal mines. Results from these studies have been used to develop design and performance criteria for a personal diesel exhaust aerosol sampler.Three personal diesel exhaust aerosol samplers have subsequently been designed and evaluated in both laboratory and field settings. These samplers use size selective classifiers for the determination of respirable mass concentrations of mineral dust and diesel exhaust particles. Their designs are based on the premise that diesel exhaust particles are predominantly less than 0.8 µm while mineral dust is greater than 0.8 µm.One design, selected for field evaluation, consists of a 10 mm nylon respirable dust cyclone followed by a 0.8 µm cutpoint impactor and afterfilter. The cyclone removes the nonrespirable particles while the inertial impactor state, collects the mineral dust on an impaction plate and allows the diesel particles to penetrate to an afterfilter. The two sample fractions of the respirable particles ( <0.8 µ.m and >0.8 µm) are gravimetrically analyzed to determine the concentrations of the diesel and mineral dust portions in the respirable coal mine aerosol."

Mar 1, 1992

By P. Falcão Neves

A detailed analysis of the geomechanical behaviour in rock cutting with a diamond saw is provided to obtain a better understanding of the mechanisms involved in the process. The energy of elastic deformation (before failure) and plastic deformation (post failure) was determined in uniaxial compression tests as well as the energy consumed per unit volume in the cutting process. The test samples are White and Ruivina marbles from Borba - Vila Viçosa in Portugal. Correlations between total deformation specific energy and cutting specific energy, normal and tangential forces and diamond indentation are analysed, and some conclusions are presented.

Jan 1, 2012

By Spark R. F

The copper deposits at Pernatty Lagoon are predominately djurleite-digenite bodies beneath the permanent water table, and chrysocolla-atacamite-malachite above the permanent water table. The minerals havebeen deposited as sheets, lobes, and pods in zones suggestive of permeability channels or permeability basius with respect to groundwater circulation.Pyrite is deposited in the form of framboids, which reflects its biogenic origin. Copper-iron sulphides deposit by replacement of pre-existent pyrite, and rarely by direct deposition. The latter mode of formation results in complex crustification bandings of chalcopyrite, bornite, sulphur rich bornites, digenite, and blue remaining covellites. The copper-iron sulphides appear to reequilibrate under constrained oxidation, resulting in an iron depletion and associated copper enrichment, the final product of which is a djurleite-digenite assemblage and associated with goethite. Where copper mineralization/ host rock relationships have rendered the rocks entirely impermeable to post ore groundwater movement, then the copper-iron sulphides are preserved as the ore assemblages.Minor and trace minerals observed include sphalerite, carrollite, galena, wittichenite, and possibly tetrahedrite in the primary ores. In the oxidized ores cllprite, tenorite, and trace brochantite have been found.

Jan 1, 1976

By W. L. Brown

"The Normetal mine is about 7 miles east of the Ontario-Quebec boundary, and 13 miles north of the town of Dupuy on the Canadian National railway. The mine workings are largely on lots 44 and 45 in the south half of range 10, Desmeloizes township.The surface outcrop is reported to have been discovered by a trapper previous to 1925, but the details are obscure. The property was originally owned by the Canadian Exploration Company of Amos, Quebec, and was later transferred to Abana Mines, Limited. The latter Company carried out underground work from two shafts down to the 550-foot level. The property was acquired by Normetal Mining Corporation in 1931 and was reopened in 1933, when development work was carried down to the 800-foot level. The mine was closed down in 1935 because metal prices did not justify production at that time. It was reopened early in 1937 and milling commenced in September of that year. To the end of 1945, a total of 1,497,- 169 tons of ore was milled from which was produced 184,533 tons of copper concentrates containing 84,738,368 lb. copper, 2,744,100 oz. silver, 26,230 oz. gold, and 153,524 tons of zinc concentrates containing 163,752,433 lb . zinc."

Jan 1, 1954

By Charlie Wyche

The British Solomon Islands Protectorate continued developmental work on bauxite deposits on the Islands of Rennell and Vaghena. A feasibility study was completed by Mitsui Mining & Smelting Co., Ltd., and Pacific Aluminum Ltd. (a subsidiary of Conzinc Riotinto of Australia Ltd,), and negotiations with the Government were in progress. The Government will receive a 25% share if the project is realized. It was estimated that the Islands contain 60 million tons of bauxite with an alumina content of 45% to 50%.

Jan 1, 1980

By M. Albertson

At Cobalt, Ontario, Canada, a lake was drained to facilitate mining, by the Mining Corpn. of Canada, during the spring and early summer of 1915. Previous to pumping out the water, great quantities of sands and slimes from concentrating plants had been discharged into the lake and during and after the lake&apos;s drainage, its basin was a receptacle for tailing products. As the writer was at work along the shore line as the lake was being drained, he had a good opportunity to observe the changes that took place as the water was withdrawn. Some adjustments between the incoming sands and the mud in the lake had taken place before pumping was commenced. One of the most interesting results was the appearance of a small dome in a path the writer traversed twice a day for several months; he remembers distinctly the difficulty of crossing this. Cobalt Lake owed its existence to the gouging out of a rock basin by glaciation. The long axis of the basin closely follows the strike of a thrust fault of about 500 ft. (160 m.) vertical displacement. The lake was originally shaped somewhat as shown. The length was about 3000 ft. (914.4 m.), the width at the lower lobe was about 1000 ft., and the width at the narrows probably 400 to 500 ft. The original depth of water varied from 20 to 30 ft. (6.1 to 9.1 m.), near where the island later was formed, to 60 to 70 ft. (23.6 to 27.6 m.) in the widest part of the lower lobe. At the narrows, the depth was 30 to 40 ft. Above the bed rock was sand, with boulders near the bottom, and mud. During the building of the railroad in 1903, considerable filling was done along the right of way. With the commencement of mining operations, about 1905, waste rock and mill tailings were dumped into the lake. One of the mining companies operated a hydraulic giant to remove the glacial debris from several hundred acres of rock surface; much of the sand and clay from this operation was deposited in the lake. About 1,500,000 tons of mill tailings, composed of sands and slimes, were discharged into the lake&apos;s waters previous to 1915. Most of this material

Jan 1, 1921

By Tom Bilson

TO recover the remaining ore tonnages along the south side of the Inspiration orebody, the company began open-pit operations in early 1948 in addition to underground mining. Due to the differences in elevation between the orebody and the existing ore handling and treating plants, the truck haulage operation is up hill. Road grades were established at 7 pct maximum.

Jan 8, 1951

By C. E. Abbott

THE Birmingham district, Alabama, is distinctive in the proximity to one another of its deposits of iron ore, coal and flux. These three basic requisites for the making of iron and steel are found within a radius of 10 miles. Both dolomite and limestone are produced, the former for blast-furnace flux and the latter for basic open-hearth operations. The Tennessee Coal, Iron and Railroad Co., a subsidiary of the United States Steel Corporation, operates a limestone mine at Muscoda, near Bessemer, 12 miles southwest of Birmingham, served by its own railroad transportation system. The mine has a capacity of 130 tons per hour. Average analyses of a recent month&apos;s production are as follows: Fe2O3 Si02 A12O3 CAC03 MGCO Lump, per cent 0.51 0.22 98.63 0.14 Crushed and washed, percent 0.70 0.26 98.36 0.18 Lump stone, 2 1/2 to 7 1/2 in., is used in open-hearth operations at Fairfield Steel Works. Fine crushed and washed stone, 1 ¼ to 0.063 in., is calcined at the, lime-burning plant and used for lime charges at the Ensley open hearths.

Jan 1, 1936

By A. L. Mular

In order to simulate a grinding circuit, it is necessary to obtain valid mathematical models of the grinding mills and classifiers in the circuit. Several models of grinding mills Ova been proposed 1,2,3 and models of cyclone classifiers are available 4,5. Those models developed by Lynch et. al. 3,5 have been tested in the plant, so that some degree of reliability can be placed on them. Because of this, it is reasonable to assume that the Lynch models will apply for a given circuit, and then to test this assumption. Empirical modifications are made as necessary for a given situation. Usually, valid simulation models can be modified slightly to provide control models6,7. The purpose of this paper is to describe the results of an approach taken by Mular8 to obtain the Lynch models of parallel cyclone classifiers being used in the A-circuit of the new Strathcona Mill***.This was one of the projects undertaken by the fourth year Metallurgical Engineering Class of 1969, Queen&apos;s University, Kingston, Ontario, Canada, as part of their process design course which cooperates closely with the Canadian metallurgical industry.

Jan 1, 1970

By S. Banisi, O. Farshid, M. R. Rozebehi, A. Bahar, A. Arghavani, M. Mahdavi

At the rougher flotation circuit of the Miduk copper concentration plant (Kerman, Iran) five column cells (CISA) with the diameter of 4m and height of 12m using static mixer type (MicrocelTM) spargers have been installed. Based on the initial design, columns should accept a feed rate of 625 t/h with 80% passing size of 90 µm and solids concentration of 28% and produce 88% of the plant concentrate (i.e., 22 t/h) containing 32% copper. Due to mechanical and processing problems this objective was never realized and theses columns were remained out of operation from the commissioning time (2005). A new attempt with the aim of returning these cells into operation started in 2013. The results of an extensive study indicated that spargers plugging due to the entrance of small amount (2 kg) of coarse particles (up to 2.5 cm) because of usual problems at the plant environment was the main reason of columns non functionality. With a change in the recycle pump inlet design to the column, which prevented the entrance of coarse particles to the spargers, the operation of the column significantly improved. It was found that in order to have a stable operation of the columns at the rougher stage the feed rate for each column should be reduced from 125 (design) to 70 t/h. The air superficial rate had to be also reduced from 1.9 (design) to 0.6 cm/s. A period of 10 days of continuous operation showed that the carrying capacity was 0.23 (g/min/cm2) which was significantly lower that of the design value (i.e., 0.58). The gas hold up was found to be lower than 10% beyond which columns started to move to the turbulent state indicated by "boiling" froth. The average life time of spargers was determined to be 20 days which considered to be very short. The average recovery and concentrate grade of these columns were found to be 68% and 32%, respectively. The high wear rates of spargers, unusually high level of maintenance and supervision needed and instability of the operation made the plant managers not to use column cells as the roughers.

Jan 1, 2014

By Richard A. Dick

Few topics in the blasting industry are more controversial than the proper riming procedure for large-diameter ammonium nitrate-fuel oil (AN-FO) charges, despite the considerable amount of research that has been done both in the laboratory and in the field. The January, April, and June 1975 issues of Emphasis on Blasting contain interesting discussions on priming (5). An ideal primer is one that will surely and efficiently initiate the AN-FO column at the correct location to assure optimum blasting performance. During the 20 years of AN-FO's existence, singlepoint priming, axial priming, multiple-point priming, thermal priming, and shock riming have all been advocated as the "optimum" method. This is not surprising because blasting specialists have often differed on even the most fundamental concepts. To define the optimum primer, we must know what detonation characteristics in the AN-FO column are most desirable. Again, authorities disagree. This paper will discuss conclusions of various studies in an attempt to clear up some of the confusion.

Jan 1, 1976

By Lynn C. Jacobsen

Among the unforeseen consequences of the 1973 Arab oil embargo has been a considerable array of new or increased taxes on the so-called energy minerals. These taxes will be the subject of this report. Both Federal and State taxes have been enacted, but I will be concerned mostly with state severance taxes and particularly those on uranium. Severance taxes are considered to include all taxes having the distinctive feature of being applied on a natural resource at the stage of extraction. The tax may be based on units of production or on value, and if on values it may be on gross value or on gross value less either arbitrary or cost-related deductions. The tax has a number of aliases - resource excise tax, conservation tax, privilege tax, mining excise tax, ad valorem production tax, and more - and this makes comparison of tax burdens among states difficult. The windfall profit tax on oil is an example of a severance tax at the Federal level. Severance taxes are an established feature of state tax systems, but they continue to be a controversial issue, and proposals to raise or modify existing severance taxes are regularly submitted to the legislatures of the Western energy producing states. No concensus exists as to what is a reason- able and proper level of severance taxation or to the form it should take. The taxes which have been adopted by the various states reflect the interaction of a variety of interests and the specific circum- stances in each state. What follows is a summary of theoretical, practical, and emotional viewpoints and arguments that surface in any statehouse in which a severance tax bill has been introduced. The New Mexico experience will be heavily relied upon. THE ECONOMISTS Marginal effects. A severance tax which is based on a gross percentage of revenue or on units of production is a constant addition to variable costs, and to the mine operator has the same effect as any other increase in operating costs. The direction of these effects is straightforward: the tax will cause the property to have a lowered present value, to be mined at a lower rate than without the tax, raise the minimum grade that will be mined, lead to lower total recovery, make marginal properties sub-marginal and discriminate in favor of richer, more profitable operations (Lockner, 1965; Steele, 1967). In the short run, production facilities are fixed and imposition of a severance tax will have little effect on production levels. In the longer term, capital is mobile and investment and exploration expenditures will shift from minerals and jurisdictions with high taxes to those with low taxes. Over a considerable range of taxation the effect will be to change the relative position of the taxing state, but an overly optimistic evaluation of the capacity of mineral producers to absorb a tax can bring an industry to a halt. It is generally acknowledged that imposition of high severance taxes on taconite in Minnesota stopped development completely, and that only the adoption of a constitutional amendment limiting the amount of taxes that could be imposed in the future brought the firms back and encouraged them to make the huge investments required (Weaton, 1969). A tax which is a percentage of the net operating income (gross revenue less cash operating costs) does not influence the cut-off grade for recovery nor change the time preference for extraction, and hence, is free of the negative features of the tax applied to gross revenues or units of production. In theory it is a more efficient tax but relative administrative complexity and inherent difficulty in predicting revenue have discouraged its use. The Wyoming severance tax on uranium, which uses grade of ore as well as price in establishing taxable value, is the most cost related, and hence, the most neutral and efficient of the various state severance taxes on uranium. Economic rent. Despite the discrimination and the anti-conservation aspect inherent in most severance taxes, economists generally endorse their use because they are seen as a vehicle to appropriate rents - that is, returns greater than the long-run competitive supply price. Conspicuous examples of supposed economic rents are the returns to oil producers because of the OPEC cartel, the returns of the uranium producers under AEC buying contracts in the 19501s, and the high prices obtained by the uranium producers for contracts entered into in the 1976-1979 period. Mining of coal in the Western states is believed by some to generate huge economic rents because of the OPEC caused increase in price of a competitive fuel (McLure, 1978, p. 261), and possibly because of clean air regulations favoring the burning of low-sulfur coal. In theory, such surplus returns could be taxed completely away without affecting supply. In practice, the situation is more complex (Steele, 1967, pp. 234-236); economic rent of mineral production is an elusive quantity involving as it does replacement costs, and technical and market risk, and it, like beauty or pornography, probably exists mostly in the eye of the beholder. Rent may also be perceived to be present in the upper portion of a cyclic market which also has a downside. Where rent exists, it is almost certain to be short-lived - cartels self- destruct, government subsidies end, competitive adjustments occur - but the taxes imposed to capture it tend to be immortal. There is little doubt that the perception of un- usual and undeserved (obscene) profits in the mid- and late 1970&apos;s was a major factor in the adoption of energy mineral taxes strikingly higher than had been previously considered. At the New Mexico legislature of 1977 supporters of a moderate tax were repeatedly confronted with some variant of the statement, "You can&apos;t expect me to believe that a

Jan 1, 1982