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By F. V. Tideswell

COAL being essentially a complex conglomerate of plant remains that have undergone decay and interaction in varying degree, it is understandable that attack on the problem of its chemical constitution by normal chemical methods should have been attended by but slight success. The obvious method of fractionation by means of selective solvents has yielded a few results of some value. Thus it is known that from many, if not all, bituminous coals organic solvents extract small percentages of oxygenated compounds, which are generally assumed to have been derived from the original plant resins, though a more probable source would appear to be the glycerides and waxes of the plants. Organic solvents also extract small proportions of hydrocarbons, the origin of which is doubtful. Of more importance is the action of such pseudo solvents as pyridine, which, in addition to their specific solvent action, have the power of resolving and simplifying a portion of the coal substance in a manner analogous to that by which water can disperse a hydrogel. Early, work with pyridine indicated that coals are composed of two main classes of compounds: the one soluble in organic solvents, the other capable of being partly dispersed in pyridine. Recent work has shown that the dispersion is colloidal in character and that it may be accomplished by the use of solvents less active than pyridine, such as benzene or chloroform, provided that the temperature of extraction is raised or the coal has been suitably preheated. The action of reagents on coal has proved of little value in the past, but some insight into the constitution of coal has been given by regulated .destructive distillation. Thus, it has been shown that coals behave on distillation as though composed of two main classes of compounds: the one readily decomposable at moderate temperatures (yielding mainly the paraffins), the other undergoing a preliminary early decomposition (with evolution of oxides of carbon and water) and yielding a residue that at higher temperatures breaks down, yielding much hydrogen.

Jan 3, 1925

By Douglas B. Silver

Super Cycle future The final topic is mining?s future. The most important questions are ?How much longer is the Super Cycle going to last? What should we expect to see going forward? How will the Super Cycle end?? Three possible scenarios follow. Scenario one: Super Cycle has peaked Kathy Casey-Kirschling is officially the first Baby Boomer. She was born Jan. 1st, 1946. If you google ?first baby boomer,? she?s the one that shows up. A Baby Boomer is anybody born between 1946 and 1964. In the United States, it represents about a quarter of the population ? approximately 76 million people. The Baby Boomer generation is going to change the economics of the world because there are so many in the generation. A review of spending patterns indicates that the largest amount of discretionary spending occurs between the ages of 49 and 52. Retired people tend to live on fixed incomes so they have less discretionary income. They also tend to downsize their house, which may contribute to the housing glut and the need for a lot less metal. Therefore, the upcoming retirement of the Baby Boomer generation could result in a massive shift in economic spending resulting in the peaking of the Super Cycle. Figure 1 is an index graph from the Toronto Stock Exchange (TSX). The index has recently peaked. A lot of people see that as a sign that bad things coming our way. A careful review of different commodity prices also suggest that the peak has occurred and it does not seem to matter which commodity prices are considered. Copper prices have seen a peak as have nickel prices. Nickel and molybdenum displayed the same trend with a peak in 2005 as did zinc. Uranium, which has single-handedly tried to behave like the dot com craze, has also peaked.

Jan 1, 2008

By Joseph B. Gillenwater

Miss Gertrude Carey lived next to us in Martinsburg, West Virginia for several years. She was a retired school teacher. She was also a cousin to Messers Dan and Joe Baker who owned and operated Standard Lime and Stone Company, a predecessor of Martin Marietta Corporation. She-was well acquainted with the Baker family and their history. Here is one of the legends she told my wife, Jean, and me. The Bakers were originally Tanners. They had a tannery near Frederick, Maryland. There were several boys in the family and when they were grown each man had specified responsibilities. Will Baker was assigned the duty of locating, buying, and transporting tanbark and lime. As he traveled through Maryland, Virginia, Pennsylvania, and West Virginia to locate and buy tanbark, he also talked the farmers out of some pieces of lime, which the farmers had produced in holes dug and filled with layers of limestone and wood. Will Baker took the lime and soaked a piece of hide in the milk of lime. If the lime did not spot the hide, Will Baker would get the farmer to burn some lime for him, and further tests would be made. If these tests were good - the Bakers bought the land. They eventually discovered that the limestone that would make lime that wouldn't spot the hide would also be suitable for producing steel. They began producing lime just outside Harpers Ferry, West Virginia in pots and upright kilns. That stone too small for the kilns was just perfect for railroad ballast. Now you know how "Baltimore Blue Bloods" got together!!

Jan 1, 1979

By Marius R. Campbell

VARIOUS classes of coals are recognized in this country at the present time. These classes depend largely upon physical characteristics rather than upon chemical composition, and consequently they cannot be accurately defined. The divisions into anthracite, semi-anthracite and semi-bituminous are fairly satisfactory; but the term bituminous embraces so large a variety of coal that it is of little value, and the term lignite is so loosely applied that it has little or no place in a scientific classification. At present there is no way of accurately defining the vari¬ous classes of coal, because no adequate scheme of classification, which applies to lignites as well as bituminous coal and anthracite bas been proposed. The object of this paper is to present such a scheme, which is based upon data obtained dur¬ing the past year by Prof. N. W. Lord,1 in charge of the chemical laboratory of the United States Geological Survey coal-testing plant at the Louisiana Purchase Exposition, St. Louis. All the classifications of coals proposed prior to 1877 were based either on physical characteristics or on proximate analyses, including all of the impurities. These schemes were illogical and highly unsatisfactory, for the physical properties of a coal give little indication of its true composition; and impurities, such as ash and sulphur, are largely the results of acci-

Sep 1, 1905

Open pits and quarries are the major sources of all hard rock tonnages mined today. Normally, ore is fractured from the pit bench face by blasting and then truck-hauled to a primary crusher on the pit rim for conveying to the concentrator; overburden (or waste) is generally truck- hauled from the pit to dump areas. This system of truck haulage of blasted ore and waste accounts for some 25 to 50% of total mining costs in a typical open pit operation and commonly is the largest single cost factor. In an effort to reduce these costs mining companies are continually replacing their older and smaller trucks with larger ones and at the same time are studying conversions to conveyor haulage, since this method of transport seems to offer possibilities of lower costs per ton of material handled. In these studies it seems logical to consider installing these conveyors as close as possible to the mining face for maximum use of conveyors and minimum use of trucks, since a conveyor is much less labor intensive than a trucking system. However, direct loading onto a conveyor near the retreating bench face is impractical because of excessive lump size. Consequently, it is conventional practice to load the blasted rock into trucks at the face for haulage to the crusher. After crushing, the rock is fed onto a conveyor. The closer the crusher is to the mine, or if it is in the mine, the shorter the truck haul and the greater the potential for cost saving. At first appearance, in-pit conveying might seem to be an obvious solution, yet many mining companies have considered such a move while few have implemented it. To determine why, it is necessary to consider the factors influencing such a decision. A conveyor system tends to be capital intensive but can have a lower operating cost per ton than trucks. Trucks, on the other hand, tend to cost less to buy but more to operate; thus, economics tend to favor the conveyor if it can be operated close to capacity and if a sufficiently large tonnage can be passed over the system to mitigate the effect of its high capital cost. In a typical hard-rock, open-pit mine it is necessary for a variety of reasons to mine several faces of both ore and waste at the same time; and any mining system must have sufficient flexibility to permit loading from one face or another at short notice. This makes it impractical to place small mobile crushers and their consequent network of conveyors at each working face. To date no alternative has been found to using trucks for bringing all rock of the same class to some convenient marshalling point from which it may be crushed and conveyed from the pit. Another advantage of trucking when compared to conveying is flexibility. Many mines wish to deliver their shot-rock to different locations, depending on the mineral content. For instance, a typical copper mine may have to simultaneously mine milling ore, leach ore,

Jan 1, 1978

By A. H. Ransom, M. E. Robb

The Salmita Gold Mine is located 240 air kilometres northea t of Yellowknife on the east shore of Matthews Lake. Salmita is one of several gold showings which are regionally associated with the steep easterly dipping contact zone between mafic, intermediate and fe lsic volcanics to the west and overlying finely laminated argillaceous sediments to the east. The volcanic assemblage forms a narrow 2 m to 7 m wide north to northwesterly trend ing Belt of Yellowknife Supergroup Archaen greenstone rocks. The contact zone exhibits exhalite character and the increased sulphide content provides a di stinct VLF-EM , IP/Resisti vi ty and/or magnetic signature. Gold occurs at or near this contact in three main settings: associated with si liceous vein-like structures; with finely disseminated sulphides within ericitic altered upper fe lsic tuffaceous unit ; or with quartz in narrow shear zones within the overlying sediment . The B-Vein is of the former type with free mi ll ing gold occurring within a highly sil iceous zone having an average widtn of 1.69 m. Alteration is intense within the immediately su rrounding host lithologies and includes the development of si lica, carbonate, sulphide, sericite and chlorite with minor graphite, epidote. tourmaline and scheelite. The mineable zone above the 4th level (-200 m) ha an average strike of 160 m and is divided into three south plunging ore shoots separated by the regional Salmita Shear Zone in the south and by a low-grade structural hiatus in the north. Production from the B-Vein commenced in August 1983 based on a diluted in situ ore reserve of 140,000 t grading 26.6 git Au . As of December 31, 1985, a total of 131 ,537 t grading 27.8 git Au have been mined at a ra.te of 160 t per day and a 96.4 percent recovery, to produce 3,522 ,000 g (113,227 ounces) of gold . Current (January I, 1986) reserves total 45,500 t grading 37 g/t Au down to the 10th level (-500 m) .

Jan 1, 1986

By Don Rose

I. INTRODUCTION The Atlanta Research Chamber is an UMTA-sponsored applied research facility studying tunnel design, excavation and support systems. It is located directly below Peachtree Street in downtown Atlanta, Georgia. It is included in the CN-120 contract to build the Peachtree Center subway station, a part of the Metropolitan Atlanta Rapid Transit Authority (MARTA) multi-billion dollar "Phase A" 53-mile transit project, which is 80 percent funded by UMTA with 20 percent provided by local authorities in Atlanta and Fulton and DeKalb counties (Figure 1). The Research Chamber is located immediately south of the main Peachtree Center Station cavern, and is in part an enlargement of the pre-existing Pilot Tunnel excavated to provide bidders on the CN-120 contract a view of the rock conditions (Figure 2). The Research Chamber lies some 3 meters above, and is approximately parallel to, the twin Running Tunnels. The Research Chamber is 18 meters long and has the same 5.5 meter diameter horseshoe shape design dimensions as the twin Running Tunnels.

Jan 1, 1979

The exciting history of gold mining in South Africa haR been told in many different ways - in books, plays, and films, and on radio. But now, there's a new and far more lively way to find out about it and that is by actually participating in living history. Your invitation to go back in time will not take you much further from the centre of Johannesburg than the late-afternoon stretch of the shadows of the skyscrapers. The Gold Mine Museum - a new venture by the Chamber of Mines - brings back all the colour and romance of mining a century ago, and reminders of some of the hardships too. This is not an ordinary museum, but one of the most modem attempts in the world to make the past come to life.

Jan 1, 1980

By C. R. Edwards

"Equity Silver Mines Limited, Canada's largest silver mine, has designed, built and operated a leach plant to reduce the levels of antimony and arsenic in its silver-gold-copper flotation concentrate. The orebody contained deleterious antimony and arsenic minerals in such proportions that the economic long-term sales contracts necessary to obtain project financing could not be procured. Construction of the leach plant therefore allowed development of the mine to proceed. Although the plant took some time to reach design throughput and product specifications, due to the complex and unique nature of the operation, these goals were successfully met and surpassed. This paper describes the physical plant and/or process technology modifications made to mold the main processes-concentrate leaching and filtering, autoclaving and filtration of by-products, and crystallization of salt cake-into an effective, economic operation.IntroductionEquity Silver Mines Limited, a member of the Placer Development Group, owns and operates an open-pit silver mine and related facilities located 37 kilometres southeast of Houston in north-central British Columbia. The mine occupies a 44 I-hectare (1089 acre) site at an elevation of 1300 metres (4265 feet) on the Nechako Plateau. Producing a copper concentrate containing high values of silver and gold, it is the largest silver mine in Canada and one of the largest in the western world. Equity stresses open communications, positive motivation, and production with safety, and achieved the best mine safety record in western Canada in 1984."

Jan 1, 1985

By P. Garritsen, J .. A. Blanco, M. C. Bell

"By 1994, Inco Limited will lower sulphur dioxide emissions from the Copper Cliffsmelter by 60% to 265 000 tonnes/year, primarily through implementing two key process changes. First, new milling technology will permit economic rejection of additonal pyrrhotite prior to smelting. Second, a bulk coppernickel concentrate will be oxygen flash-smelted, thereby eliminating the existing multi-hearth roasters and reverberatory furnaces . All copper will be recovered in the matte separation plant as a nickeliferous chalcocite, and will be oxygen flash-smelted for blister production. This paper outlines the development of the project and describes the process, including the flash furnaces, new sulphuric acid plant and additional oxygen plant.IntroductionInco 's SO2 Abatement Program will lower sulphur dioxide emissions at Sudbury from the current levels of 685 000 tonnes per year to 265 000 tonnes per year by 1994 as required by Ontario' s countdown on acid rain regulations.It is the high tonnage of sulphur mined that creates the magnitude of the SO2 emission problem at Sudbury. At a production rate of 240 million pounds of nickel per year, Inco mines 12 million tonnes of ore. At 10% sulphur it mines 1.2 million tonnes per year of sulphur. If Inco did not fix any of this sulphur it would be emitting 2.4 million tonnes per year of sulphur dioxide-about as much as all other Canadian emissions. Today, however, Inco is already fixing 70% of the SO2 in ore, in several ways : mostly as sulphur in pyrrhotite rejected to tailings in the milling operations; as acid from the roasting of pyrrhotite and some nickel concentrate at the Iron Ore Recovery Plant (lORP) and some as liquid S02 from the copper flash smelting furnace. By fixing 70% of the sulphur the current allowable SO2 emission levels of 685 000 tonnes per year is met. Total sulphuric acid production is currently 450 000 tonnes per year and in fact, the 10RP operation is being continued only to maintain established acid markets.Historically emissions have been reduced from the 2 000 000 tonne per year level to the current level of 685 000 tonnes per year by rejecting pyrrhotite from the smelter feed, and 70% of the SO2 containment problem at Sudbury has already been addressed.While Inco's profits are large at current nickel prices, most people have forgotten that back in 1982 Inco was losing a million dollars a day. Inco did make a dramatic response to this economic stimulus. The Ontario Division increased productivity by 65% and lowered costs to become the lowest cost nickel producer."

Jan 1, 1990

By W. Denham Verschoyle

IN designing a pocket instrument whereby any given horizontal or vertical angle may be closely approximated, the following points should be kept in view, if general utility is aimed at 1. The instrument should be light and compact, so that it can be carried in the pocket, or in a sling. 2. It should be capable of observing any angle whatever, horizontal or vertical. 3. Since time is often an important consideration in making a preliminary survey, it should be capable of giving the horizontal and vertical angle at one observation. I do not know of any instrument that will fulfill these requirements, except the one here described. Where the depression- or elevation-angle of the distant object, whose bearing is required, exceeds 50 or 60 degrees, it becomes difficult or impossible with a prismatic compass, for instance, to obtain accurate results; and since it frequently happens, particularly in mining, that much work requires to be done beyond that limit, it is obvious that an instrument which can be used to observe a high angle just as easily as a low one, if not absolutely a necessity, will at least be a great convenience. How this " pocket transit " attains to the required degree of universality will be understood from the diagram, Fig. 1, in which B is a beveled, graduated circle, attached to and freely revolving about the center of the magnet A. Light falling on B is reflected through a window in F (the compass-box), along the line AC, and is again reflected back to the eye at D by the prism C. By a simple arrangement, the sight-line DCE can be completely revolved in the vertical plane DE, which is normal to AC. It is clear, then, that no matter through what vertical

Jul 1, 1907

By Foster Fraas

MOST commercial electrostatic separators utilize the electrical property of conductivity, but although based on the same principles, they are constructed in a variety of forms, a common one being the simple roll type. Some information obtained during an investigation of that type of separator, and which indirectly is applicable to other types, is presented here. NUMERICAL RELATIONSHIP In Fig. I material discharged from hopper 6 is fed onto grounded rotating roll 2. Electrode 3 is at a high electrical potential with respect to roll 2, and any conductive particle in contact with roll 2 therefore acquires an electrical charge of such polarity that, when present in the electrical field, the force on it is in the direction of electrode 3. A detailed description of the charging by conductance as utilized in electrostatic separators may be found in a previous publication.1 As a result of this force, the path of the projected particle is changed in increasing amounts in the direction toward region C as the magnitude of the charge is increased. With the dividing edge 4 the projected particles may be divided into two fractions -those in region C designated as "deflected" or " deflectant " and those in region B designated as "residue." When material is passed over the roll only once, a complete separation is seldom obtained, therefore most commercial separators contain several roll-separator units in [ ] series, and some practical machines use as many as 12. In this paper a "pass" means the passage of material over a single-roll unit. The procedure is to repass either residue B with a low potential on electrode 3 or deflectant C with a high potential on 3. Most electrostatic separations follow a flowsheet of roughing and cleaning either the concentrate or the tailing, on both. In a specific instance, a dry, heated mixture of wet cleaned chromite and garnet from an

Jan 1, 1942

The purposes of composition are various; one purpose, for instance, is to make a record for the writer's own use, as in a diary. That does not involve responsibility to others. There is also the writing meant to influence opinion-to be persuasive and pleasing. With such writing we need not concern ourselves at this stage of our study. The prime purpose of technical writing is to be informative-to convey information; therefore it must be clear beyond the chance of misunderstanding. Such clearness is impossible if meaningless or ill chosen words are sprinkled through the text. Discard the trivial phrases that are constantly at your elbow. Brush aside a host of vapid superlatives. Metternich exclaimed: "The superlative is the mark of fools". It is a false emphasis, like the underlining in a school-girl's letter. For example, the little word 'very' can be deleted nine times out of ten; it is an impediment to terse and perspicuous writing, as the multitudinous hand-baggage of the British tourist is to his travel. 'Very' supposes comparison. A mine with a 1000-ft. shaft is very deep to the scribe who writes from the Joplin district, in Missouri, but it seems a shallow hole to a man living at Calumet, Michigan. A vein that is 10 feet across may be considered very wide at Cripple Creek, Colorado, but it is only a 'stringer' to the miner at the Homestake, in South Dakota. Ore assaying $20 in gold is very rich at Juneau, Alaska, where 10,000 tons of $1 ore is crushed daily, but it is relatively low-grade to the pocket-miner at Alleghany, in California. It is all a matter of comparison; unless the reader knows your standards of depth, width, or richness, your 'very' has no significance. "Where erosion was very rapid or oxidation very shallow"

Jan 1, 1931

By Doug Smith, Gary Taylor, Paul Ogryzlo

"Uranium mining and processing typically requires large quantities of high-grade reactive quicklime for the neutralization and clean-up of contaminated mine water and mill process waste streams. Currently the Saskatchewan uranium industry’s lime requirements are being supplied from deposits located in Manitoba and Alberta, resulting in transportation costs, which equal or exceed the market value of the product. During the summer of 2001, the northern village of Pinehouse located 220 kilometers south of the Key Lake uranium mill, staked two previously discovered limestone deposits. The relatively shallow deposits, known as Missi Island and Sleeping Giant are located in close proximity to one another, approximately 35 km south of Pinehouse adjacent to highway 914. This paper describes the results of a scoping study carried out by AMEC for the development of the two deposits based on a seasonal limestone mine and a continuous 40,000 to 60,000 tpy wood fired calcining plant designed to supply all of the quicklime needs of the Saskatchewan based uranium industry. Also described are the results of calcining and customer acceptance testwork on samples of lime prepared from recent Pinehouse limestone drill core. The potential benefits of the project include a significant new source of revenue for the community of Pinehouse, lower lime costs for the Saskatchewan uranium industry and employment for northerners in the mining, processing and wood harvesting operations.IntroductionInterest in the Pinehouse/Massinahigan River area for limestone was precipitated by the results of a 1977 industrial minerals drill hole program by the Saskatchewan Department of Mineral Resources. These results led to the acquisition of land in the area by Missi Island Mines Ltd who carried out extensive exploration during the period 1978-1982. They discovered a deposit on the southwest side of the Massinihigan River thought to contain approximately seven million tonnes of limestone with an average grade of 94.5% CaCO3. Missi Island carried out preliminary feasibility studies and prepared an Environmental Overview Statement. However, in spite of positive recommendations, the project was dropped in the mid 1980’s."

Jan 1, 2003

By P. G. Clites

This bulletin summarizes the results of Bureau of Mines research on the development of the inductoslag melting process. Inductoslag melting is an induction melting technique using a segmented, water-cooled, copper crucible. The process was developed as part of the Bureau's work on effective utilization of reactive metal scrap, and the process has been applied to melting Ti, Zr, Cr, Co, Fe, Ni, and V. Construction details are given for the segmented crucibles and for both an ingot furnace and a casting furnace. The melting process is described, and results of tests conducted with a variety of reactive metals are given.

Jan 1, 1982

By Joseph W. Richards

THIS method of briquetting flue-dust, or flue-dust mixed with fine ores, or, in a few exceptional cases, coke-dust, has come into large commercial use in Europe, and a small plant is already in operation in the United States. It promises to become of such great importance to the iron industry of the United States that the following description will certainly interest the majority of our pig-iron producers. Discovered in 1908, the process rests upon the observation of Dr. Schumacher that blast-furnace flue-dust, while possessing of itself no binding or cementing properties, acquires strong cementing properties if mixed with a very small amount of certain salt solutions, the amount of which is so small that the resulting cementation appears to be rather by catalytic action of the salts added than by the mass-action of such chemicals. To be more specific, fresh blast-furnace flue-dust mixed with from 5 to 10 per cent. of its weight of magnesium chloride or calcium chloride solution-that is to say, with from 0.25 to 2 per cent. of its weight of magnesium chloride or calcium chloride-acquires the property of setting within a short time, from 15 to 60 min., and forming a hard cemented briquette. Alkaline solutions appear to have no action such as described, and they even interfere, if present, with the action of the magnesium and calcium solutions. When treated in this way the flue-dust briquette sets very hard, apparently from pure excess of cementing- and setting-power. It is, therefore, possible to . mix with the flue-dust a considerable proportion of inert ore or like material, which has no setting-power by this process, and thus to make a compound briquette containing large quantities of ore mixed with flue-dust, but in which the flue-dust may be regarded as the cement or binding-material. A particularly strongly cementing flue-

May 1, 1912

By Herbert Hoover

I HAVE been greatly honored as your unanimous choice for President of this. Institute, with which I have been associated during my entire professional life. It is customary for your new President, on these occasions, to make some observation on matters of general interest from the engineer's standpoint. The profession of engineering in the United States comprises not alone scientific advisers on industry but, in great majority, is comprised of the men in administrative positions. In such positions, they stand midway between capital and labor. The character of your training and experience leads you to exact and quantitative thought. This basis of training in a great group of Americans furnished a wonderful' recruiting ground for service in these last years of tribulation. Many thousands of engineers were called into the army, the navy, and civilian service for the Government. Thousands of high offices were discharged by them with credit to the profession and the nation. We have in. this country, probably, one hundred thousand professional engineers. The events of the past few years have greatly stirred their interest in national problems.' This has taken practical. form in the maintenance of joint committees for discussion of these problems and support to a free advisory bureau in ,Washington. The engineers want nothing for themselves from Congress.. They want efficiency in government, and you contribute to the maintenance of this bureau out of sheer idealism. This organization for consideration of national problems has had many subjects before it, and I propose to touch on some of them this evening.

Jan 1, 1920

By Jay A. Bowden

In April of 1990, Homestake Mining Company began a 5,100 m (16,700 ft.) exploration drift from the Homestake Mine in Lead, South Dakota. The drift starts from the mine's 6800 level, nearly 2,100 m below the surface, and extends north to further explore occurrences of gold discovered by surface drilling. Access to the North Drift for men and materials and for disposal of waste rock is limited to the Homestake Mine's #6 Winze, which serves as the major production shaft for the deep levels of the mine. This paper will discuss the successes and challenges encountered while managing a tunneling project 2,100 m below the surface and from an active mine.

Jan 1, 1993

By H. P. Allen

THE Achotla mill of the Cia. Minera de Peñoles is of special interest in that it is one of the few still employing the chloridization process. The ore milled comes from the Suriana mine and consists of both oxide and sulphide, from neither of which can the gold or silver be extracted by a simple cyanide treatment. The mill was built in 1927, after several years of study in the development of the process1, and operated from December of that year until October 1930. Operations were resumed in February 1935, and have been continuous since, treating approximately 5000 tons per month, while the mine is getting up to full tonnage of 6500 tons per month.

Jan 1, 1937

By Dr. O’Neil Thomas J., Donald W. Gentry

It was a western truism that more money was made from selling mines than from buying them, just as it was accepted that many a good mine had been spoiled by working it. from R. E. White, "The Mining Town," Alta California August 18,1873 INTRODUCTION One of the most important aspects of mineral enterprises of US corporations is the influence of the depletion allowance on cash flow. This allowance permits mineral producers to claim sizable federal income tax deductions not available to other industries, and these deductions significantly increase cash flows in mining. In the past several years the minerals depletion allowance has come under increasingly heavy fire from many sectors as a tax loophole that deprives the federal government of large amounts of revenue. One estimate of the loss of tax dollars in 1968 was $2.25 billion due to depletion deductions and intangible expenses in the oil industry. Largely on the basis of such arguments, the Tax Reform Act of 1969 reduced percentage depletion rates for a number of minerals, and the Tax Reduction Act of 1975 totally eliminated statutory depletion for most oil and gas. In regard to percentage depletion for hard minerals, the federal government has estimated its resulting loss of revenue at $1.75 billion for 1980. The TEFRA legislation of 1982 further reduced the statutory depletion allowance available to iron ore, coal, and lignite beginning in 1984. Thus, it is clear that minerals engineers and managers should have a thorough knowledge of the origin, evolution, justification, and computational procedures relating to the depletion allowance. ORIGIN AND EVOLUTION OF THE DEPLETION ALLOWANCE

Jan 1, 1984