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By Franklin Moeller

CONSIDERING the really short time that has elapsed since hydro-metallurgical processes of extracting copper from ores have been extensively developed, and the large scale on which this method is practised at Ajo, the successful operation of the plant must excite the admiration of every visitor. The application of the mechanical unloader to the purpose for which it is employed at Ajo is but an extension of the use for which it was originally designed, some 20 years ago, for unloading iron-ore vessels at the lower lake ports. At a time when the maximum output of a single machine, with men shoveling the ore into buckets, did not exceed 40 tons per hour, G. H. Hulett invented and constructed a mechanical unloader with a bucket of 10-ton capacity. This machine was of the steam hydraulic type, and it is still in operation after nearly 20 years of service. Several more machines of the same type were built, but the difficulties of power transmission, and the rapid development of electrical machinery, soon led to the adoption of electrically operated machines, and practically all of the later installations have been thus equipped. This electrically operated unloader has proved so well fitted for the work that the design of the lake boats has been practically revolutionized, with special view to the ease and rapidity of unloading. It is now possible to unload a 12,000-ton vessel with four machines in a little over 2 hr. This has necessitated an increase in the capacity of the machine, and the largest yet built handles an average load of 17 tons, with a possible maximum of 20 to 21 tons.

Jan 8, 1918

By Guojun Ma

The entrainment of charge materials, evaporation or volatilization of elements and ejection of slag and metal by spitting or the bursting of gas bubbles are mechanisms whereby stainless steel plant dust are generated from the electric arc furnace and refining converter. TCLP and ASTM D 3987-85 tests on dust that was collected from the baghouse filter system of a South African Stainless Steel plant showed that this dust can be considered hazardous according to South African legislation, due to the high degree of Cr (VI) leachability (~13mg/l for TCLP and ~8mg/l for ASTM vs. regulation threshold of 0.05mg/l in drinking water). The dust is therefore considered to be harmful to both the environment and human health, due to its high solubility in water and carcinogenic properties. It should therefore be treated before being stockpiled or land filled. This paper consequently describes an investigation into the formation of Cr(VI)-containing stainless steel plant dust and the stabilisation thereof in a sintering process, whereby the dust was mixed with a silica-rich clay. It is postulated that Cr(VI) form when the (Mg,Fe,Mn,Cr)3O4spinel phase, CaO, Ca(OH)2 and CaF2 (all of which are present in the dust) react. This reaction was found to take place both at ambient and at high temperatures (1100°C). Stabilization of Cr(VI) in the dust could be achieved at an optimum sintering temperature of 1100°C for a 50mass% dust : 50mass% clay mixture. Chromium emission during the sintering process was found to be low, and within environmental limits.

Jan 1, 2006

By John L. Schroder

In selecting the best system of mining for a particular operation, many different factors must be considered. The system to be finally selected should be that which provides: 1) The highest possible degree of safety for mine personnel. 2) The lowest cost per ton of product. 3) The maximum coal production per man-shift. 4) The most suitable quality of final product, considering its intended use. 5) The maximum percent recovery of coal per acre of reserve consistent with cost and subsidence rights. 6) Consideration for the ecology of the area. Some of the important factors to be considered when choosing a method of mining are: 1) Amount of cover over the coal seam. 2) Type of the rock in the overburden. 3) Characteristics of the coal seam including: (a) the thickness of the coal seam; (b) the nature and location of any impurities or irregularities; (e) the dip (or pitch) of the coal seam; (d) the nature and direction of any definite cleavage ill the czoa1 seam; (e) the hardness of the coal; (f) the structural strength of the coal; and (g) the presence, anti amount, of explosive gas (methane). 4) Quantity of water likely to be encountered in the mining operation. 5) Nature and strength of the roof (top) over the coal seam. 6) Nature and strength of the floor (bottom) under the coal seam. 7) Any previous or concurrent mining in seams above or below the coal seam to be worked. Information on items 1-7 may be obtained in several ways. Topographical and geological reports and maps of the area are generally available

Jan 1, 1973

By J. D. Hanawalt, W. H. Gross

Magnesium has long been known as the lightest of our engineering metals. This metal, silvery white in color, has a specific gravity of only 1.74. Aluminum, the next lightest structural metal, is 1 ½ times heavier; zinc is 4 times heavier; iron and steel are 4 ½ times heavier; and copper and nickel are 5 times heavier. Magnesium does not occur in the free state but is very abundant in nature, constituting 2.5 pct of the earth's crust in the form of various ores. It is the third most abundant structural metal, being exceeded only by iron and aluminum. Magnesium is unique, however, in that in the form of magnesium chloride it also exists in the oceans. Sea water is the source most widely used for production in the United States but magnesium is also commercially produced from magnesite, dolomite, and other ores as well as from certain inland brines. The vast quantity of magnesium existing in the waters of the oceans can be visualized when it is realized that the removal of one hundred million tons per year (the approximate annual steel production in the United States) for a million years would reduce the magnesium content of sea water only from 0.13 to 0.12 pct, providing no more magnesium had washed into the sea in the meantime. Not only is magnesium potentially very abundant but it is in addition a very versatile metal and can be shaped and worked by practically all methods known to the art of metal working. It can be cast by sand, die, and the various permanent-mold methods;

Jan 1, 1953

By Jed H. Mosgrove

One of the most interesting of all the subjects required of persons studying the different facets of coal mining is coal mine gases. Some mine gases have been a real problem since the very beginning of underground mining, and in the early days there was insufficient knowledge to cope with them. The history of mining shows that until about the last 50 years, much work was done primarily by the hand methods which are primitive by today's standards. Miners had to contend with gases without the aid of enclosed lighting, permissible mine machinery, sophisticated testing devices, and high-pressure ventilating fans. In early days the miners were not educated about the different mine gases nor did they have the technical equipment to determine the actual composition of the deadly atmospheres they encountered. They simply applied a descriptive term to each gas or mixture of gases depending on its, effect on a person or the surrounding atmosphere. The gases or mixtures of gases were then referred to as "damps," a term which was probably derived from the German word "damps," meaning vapors or gases. The more common damps encountered were : Blackdamp A condition of the atmosphere in which a miner's light would be extinguished and in which breathing would be difficult, sometimes even resulting in suffocation. An atmosphere deficient in oxygen which could contain a combination of any of the mine gases. Firedamp A flammable mixture of methane and air which would either burn or explode when ignited. White Damp A mixture of gases containing carbon monoxide, most often found in mines during fires or after explosions.

Jan 1, 1981

By Hyung-Min Kwon

There are a number of methods available that can be used to estimate the bearing capacity of piles that are subject to lateral load, such as the theory of subgrade reaction or the elastic continuum approach. The objective of these approaches is to determine the lateral load corresponding to the allowable lateral displacement of the pile. It is important to select the appropriate soil stiffness when analyzing soil behavior within the allowable displacement of piles because the stiffness of soil is dependent on the displacement of piles. Even though pressuremeter tests can measure the stress-strain behavior within a wide strain range, pressuremeter test results have been utilized to assess only the fragmentary soil modulus based on either semi-empirical correlations or analytical approaches. This study is concerned with a methodology that can estimate the horizontal deformational property, while taking into consideration the nonlinear deformational characteristics of sandy soils. Pressuremeter tests were conducted for 15 cases using a calibration chamber. Reloading curves were employed in the estimation of horizontal deformational property in order to minimize the effect of soil disturbance caused by the installation of the probe. The shear modulus degradation characteristics were estimated from the curve fitting for the reloading curve and from extrapolation using the exponential function. In addition, the difference was taken into account between the stress state around the probe in reloading and that of the in-situ state. A consistent relationship was observed between the maximum shear modulus taken from the suggested method and the bender element tests performed in the calibration chamber, simultaneously with the pressuremeter tests. In addition, the results showed significant concurrence with the well-known empirical correlation.

Jan 1, 2008

By A. F. Meston

Centrifugal force has been used for centuries for separating liquids but machines for doing this are a comparatively recent development. The use of these machines is being extended into many industries but this paper is confined to their use in the oil industry. The centrifugal machine is found at the well where "cut oil" is dehydrated for acceptance by pipe lines; and in the refinery and byproduct plant. In fact, wherever finely divided suspended particles should be removed from an oil, there is a possible use for a centrifugal machine, if the particles have, or can be made to have, a specific gravity different from that of the oil. Centrifugal machines are also used for cleaning fuel and lubricating oils and dehydrating transformer oils. Applications and Results When oil comes from the well mixed with water, it is spoken of as cut oil. Settling often does not remove sufficient water for the oil to be accepted by pipe lines, thus necessitating chemical or other treatment. Centrifuging alone, or following chemical treatment, effectively prepares such oil for pipe lines, as is shown by the following data: WateR, Etc. Wat~R. Etc. Temperature, Oil to Pipe Line, aT StUt at Finish Degrees F. Bel. Per HouR PIE Cent. PEECent Oklahoma lease.... 160 10 10 0.25 Kansas lease....... 125 4 20 0.25 to 2 On the Oklahoma lease, the machine was cleaned of solid material once in 12 hr. At first, it was thought that chemical treatment was necessary to start separation and 1 qt. of prepared compound was added to each 100 bbl. of the cut oil before centrifuging. Later it was found that

Jan 1, 1924

By F. P. Dewey

The first systematic attempt of the National Museum to gather material representing the economic geology and metallurgy of the country was made in connection with the Centennial Exhibition. The department may be considered as having originated then, althongh it was not formally inaugurated until December, 1882. Previous to the Centennial, all the illustrations of economic geology had been included in the mineral collection, and the illustrations of metallurgy were so very few that they had also been included with the minerals. When the museum began its collections for the Centennial, the subject of the mineral resources of tile United States was placed in the hands of Professor Wm. P. Blake, who was eminently fitted to undertake the work by his experience at various international exhibitions and his extensive acquaintance with the mining industry of the country. Professor Blake prepared a broad and exhaustive plan for this purpose, and the very large collection shown at Philadelphia was well calculated to set forth the vast mineral wealth of the country. The history of the department proper may conveniently be divided into three periods : first, the formative period, during which the Centennial material was mainly administered upon, ending Jnly 1, 1884, with the beginning of the preparation for the New Orleans Exposition; second, the New Orleans Exposition period, from July 1, 1884, to June 30, 1887, during which the collections for the New Orleans Exposition were made, exhibited at New Orleans, returned to Washington, and installed permanently in the museum; third, the southwest-court period, from July 1, 1887, to October 1, 1889, during which the collections were arranged in the southwest court of the museum.

Jan 1, 1891

By William H. Pomroy, Kenneth E. Hjelmstad

An underground mine fire can seriously threaten the lives of all personnel in the mine. This fact makes fire emergency planning a high priority in the mining industry. A fire emergency plan includes a means of warning miners of the existence of a fire, and the need to evacuate or retreat to a place of refuge. The warning alarm must be fast and must reach all miners, regardless of their location or work activity. Means of fire warning are varied, and include such methods as stench, flashing lights, telephones, and word-of-mouth (messengers). Unfortunately, none of these methods are entirely satisfactory. Stench can be slow and seldom achieves total mine coverage, especially in high-back room-and-pillar mines with low ventilation velocity. Telephones are effective only where personnel are close enough to hear the phone ring. A novel fire warning alarm system has been developed by the U.S. Bureau of Mines which enables instantaneous warning of all underground personnel. The warning alarm is sent by an electromagnetic signal which penetrates through mine rock from a transmitter to small person-wearable receivers. Each miner's cap lamp battery could be equipped with a small receiver and when a fire or other emergency occurs the miner could be alerted to the danger by a blinking of the cap lamp. Testing of prototype equipment has demonstrated that the transmitted signal is capable of penetrating through over a mile of mine rock and activating the receiver. This paper describes the theoretical basis for through-the-rock ultra-low frequency electromagnetic transmission, design of the prototype transmitter and receiver, test results, and status of commercial development of systems utilizing this technology.

Jan 1, 1994

By William M. Luff

"The Bathurst area has recorded mining production as early as 1837, although the bulk of the production has come in recent years. Production has been mainly from the well-known massive sulphide deposits, but vein, gossan, and a variety of other deposits have also been mined. This paper summarizes the history of the mined deposits, along with tonnages and grades produced.A number of ""firsts"" have been noted in the Bathurst area. The A Zone deposit, located in the Heath Steele area, was the first in the world discovered using airborne electromagnetic methods. Heap leaching of gold from the gossan zone at Caribou was the first operation of its kind in Canada. The Keymet mine was the first base metal (lead-zinc) mine in New Brunswick. For the past few years, the Brunswick No. 12 mine has been one of the largest zinc mines in the world.IntroductionThe Bathurst area (Fig. I) first had mining production in 1837 when copper was mined from a deposit on the Nepisiquit river (MacKenzie, 1958). The majority of the production, however, has been in recent years from massive sulphide deposits, but there are also other significant operations.Table I is a summary of Bathurst area mineral production, showing concentrator feed tonnages and mill feed grades. The table does not include peat deposits, sand and gravel, dimension stone or rock quarries. Figure I is a general geology map of the Bathurst area, indicating deposit locations. The deposits are divided into four categories: massive sulphide, vein, gossan and other. The deposits in each category are described in chronological order of exploitation."

Jan 1, 1995

By Walter A. English

CONTENTS PAGE Introduction. By WALTER A. ENGLISH 1 Theory of Seismic Reflection Prospecting. By WILLARD H. TRACY 2 Instruments for Reflection Seismograph Prospecting. By ARTHUR NOMANN 9 Seismograph Field Operations. By FRANK ITTNER 15 Determining Geologic Structure from Seismograph Records. By P. C. KELLY 22 INTRODUCTION BY WALTER A. ENGLISH,* MEMBER A.I.M.E. THE four papers making up this symposum have been prepared espe-cially for those who have no knowledge of seismograph prospecting. To many people mathematics is a formidable subject, and many are discouraged from studying seismograph prospecting under the mistaken assumption that the mathematical requirements are severe. In the papers presented here there is not a single mathematical equation. We believe that considerable competence in dealing with some of the most important problems of this work can be attained without any mathe-matical training whatever. At the present time, there is a real need for interpretation of results by persons thoroughly competent to bring geologic experience and imagination to bear on data that are subject to multiple interpretation from a strictly physical viewpoint. Likewise, those charged with the responsibility of planning seismo-graph exploration campaigns would do well to become familiar with as . much as possible of the technical aspects of the work. They would then be in better position to judge of its success in individual cases. It has often been said that the seismograph is a new structure-finding tool for the geologists to use. Using a tool and using its product are two different things. One does not use an automatic screw-threading machine when he buys a box of screws at the hardware store. Neither does the geologist

Jan 1, 1939

By Frank Rieber

The discovery that strongly magnetic bodies localized near the surface of the earth could be detected by the distortion which they produced in the resultant magnetic field marked the beginning of magnetic surveying methods. From an original ability to detect bodies of magnetic iron ore and the like when located very close to the surface, these methods have been extended until today they promise to give much information with regard to the structure of such slightly magnetic material as sedimentary rock containing only a very small proportion of iron.' The recent extensions have been made possible through the development of more delicate instruments, and of methods for their use. From the original compass and dip needle, the design of apparatus has progressed until equipment is typified by magnetic balances capable of measuring the components of the earth's field to an extremely high degree of accuracy. It seems unlikely that the limit of such instrumental development has been reached. Just as the change from compass and dip needle has enabled the location of relatively minor changes in magnetic materials, so additional developments in the direction of increased sensitivity, as well as in greater dependability and constancy of operation, should reveal positively many slight changes which either escape notice in the present surveys or are so small that they cannot with certainty be separated from uncontrollable errors due to inconstant operation of the equipment. The ability to read smaller and smaller variations does not mean, of course, that deductions as to the causes of these variations will be made as accurately and definitely as is possible with the more pronounced anomalies.

Jan 1, 1929

By Jed H. Mosgrove

One of the most interesting of all the subjects required of persons studying the different facets of coal mining is coal mine gases. Some mine gases have been a real problem since the very beginning of underground mining, and in the early days there was insufficient knowledge to cope with them. The history of mining shows that until about the last 50 years, much work was done primarily by the hand methods which are primitive by today's standards. Miners had to contend with gases without the aid of enclosed lighting, permissible mine machinery, sophisticated testing devices, and high-pressure ventilating fans. In early days the miners were not educated about the different mine gases nor did they have the technical equipment to determine the actual composition of the deadly atmospheres they encountered. They simply applied a descriptive term to each gas or mixture of gases depending on its effect on a person or the surrounding atmosphere. The gases or mixtures of gases were then referred to as "damps," a term which was probably derived from the German word "dampf," meaning vapors or gases. The more common damps encountered were : Blackdamp A condition of the atmosphere in which a miner's light would be extinguished and in which breathing would be difficult, sometimes even resulting in suffocation. An atmosphere deficient in oxygen which could contain a combination of any of the mine gases Firedamp A flammable mixture of methane and air which would either burn or explode when ignited. White Damp A mixture of gases containing carbon monoxide, most often found in mines during fires or after explosions.

Jan 1, 1981

By J. A. L. Napier

The evaluation of stress distributions and deformations in the vicinity of tabular mine layouts has been carried out routinely for many years using the displacement discontinuity boundary element method (DDM). In this approach, mine layouts are approximated as irregular shaped planar cracks (or slits) where the ?width? of the crack, corresponding to the excavation height, is assumed to be negligible compared to the in-plane, lateral dimensions. Early implementations of this approach have employed square element tessellations with constant displacement discontinuity component values. This is generally restrictive when considering the analysis of irregular pillar layouts or the intersection of fault planes with excavations. This paper describes a general revision of this approach in which triangular or quadrilateral element shapes are introduced in conjunction with higher order variations of the displacement discontinuity shape functions. This facilitates an accurate evaluation of detailed stress and displacement components close to excavation surfaces and allows the investigation of local damage and failure behaviour associated with particular geological structures such as weak parting bands or weak layers. A method to embed these features in an efficient and accurate multi-level solution scheme is described. This formulation can be extended to allow the analysis of shallow-depth pillar layout problems, facilitating the assessment of the interactive response and stability of shallow depth pillar layouts. A simple deformation model is introduced to facilitate the assessment of pillar failure and bursting potential in shallow mine layouts. The computational techniques described here have been implemented in a computer code called TEXAN (Tabular EXcavation ANalyser) and are illustrated by the simulation of a particular multiple reef pillar mining problem in a shallow depth platinum mine.

Jan 1, 2007

By Dwight Farnham

Description of Quarry THE shale used at the Renton plant of the Denny-Renton Clay Coal Co., for the manufacture of vitrified paving brick occurs in a hill rising from 200 to 300 ft. above the level of the valley in which the plant is situated. The shale deposit, which is of unknown thickness pitches about 10° to the southeast. The 150-ft. face worked extends approximately east and west, so that the clip, as shown by the photograph, is to the left and into the hill. The shale is overlain with about 50 ft. of gravel, 70 ft. of clay, and 30 ft. of mixed loam and gravel, making altogether from 125 to 150 ft. of overburden. Disposal of Overburden The overburden is removed by sluicing. For this purpose a No. 2 Joshua Hendy giant is used, throwing a 12-in. stream', and having 60 lb. pressure at the nozzle. The water is drawn through an 8-in. pipe from Cedar river, about 1,000 ft. distant, by means of a Worthington four-stage centrifugal pump, direct connected with a 100-h.p. motor placed just south of the factory, and 1,500 ft. from the nozzle This plant handles the material satisfactorily to a height of about 75 ft. above the level of the top of the shale. When the higher levels are worked, an auxiliary plant consisting of a four-stage Byron Jackson centrifugal pump with a 100-h.p., belt-connected motor, is thrown into the system. This plant is situated on top of the shale and can be discerned at the extreme right of the trestle work in Fig. 1.

Jan 9, 1914

By S. F. Emmons

"The obscurity which still veils from us the true nature of veins will become more acid more cleared up when they can be considered in connection with the geological structure of the regions in which they occur." 1 THESE words, according to Lossen, the biographer of the late Dr. A. von Groddeck, of Clausthal, were the last received by him from that eminent man, perhaps the most far-sighted and carefully progressive of recent writers on ore-deposits. They seem to me to form a fitting text for what I am about to say ; since I find that many of the conclusions at which I have arrived by my own study of the structural relations of ore-deposits,or, in other words, of the structural and dynamic geology of the regions in which they occur in this country, have been similarly determined by hint within recent years in Europe, and especially in his home field of work, the Harz. I shall not enter upon a detailed account of how far other workers may have arrived at similar conclusions with myself, since these questions of priority are of little interest, except to those immediately concerned; but will briefly present the methods by which, in my work in this country, I have arrived at certain generalizations, and will point out the practical bearing which they may have upon the work of mining engineers. In my first thorough and systematic examination of an important group of ore-deposits, viz., that of Leadville, Colo., I was enabled, through the generous facilities afforded me by the then Director of the Geological Survey, Clarence King, to

Jan 1, 1913

By Jan Rosenkranz, Anders Sand, Lisa Malm, Nils-Johan Bolin

Within flotation technology the general trend is towards very large cells. Scale-up is usually done by postulating geometrical similarity, which implies keeping the aspect ratio constant when increasing cell volume. Consequently, the design of flotation circuits typically involves several cells of identical geometry within a bank. Using a few standard sizes in a flotation plant simplifies design, manufacturing and maintenance of the cells, but does not necessarily guarantee optimal performance and selectivity of the flotation process. Geometry parameters for a given cell volume that influence flotation cell performance include cell height, which causes changes in the hydrostatic pressure and suspension hydrodynamics, and also influences the travel distance of particle-bubble agglomerates as well as the homogeneity of the mixing. Also the thickness of the froth layer depends on the aspect ratio of the cell. The objective of this work is to gain a better understanding of material distribution and properties within a flotation cell and, based on this information, elucidate how alterations of the cell geometry can influence separation efficiency. For this purpose systematic measurements and analyses of the spatial distribution of the different phases within a 160 m3 flotation cell have been carried out with a particular focus on an industrial, low-grade copper ore beneficiation process. The concepts for sampling at different vertical and lateral positions of the flotation cell are introduced. The results from the experimental work give an understanding of internal material distribution within flotation cells. Based on the measured phase distribution and concentrations as well as particle properties at various positions within the cell, the implications for an optimized scaling and design of individual flotation cells within a flotation circuit are discussed.

Jan 1, 2016

By Michael S. Wieland

Recognizing the dynamic nature and possible range of toxic concentrations in the impending fume cloud prior to undertaking explosive blasting can reduce potential hazards and mitigate related incidents. The scaled cloud model was formulated to predict the relevant (major) toxic components in fume clouds released by nonideal mining explosives used for surface blasting. Natural turbulence unceasingly disperses the toxic molecules, widening (inflating) the fume cloud while diluting the concentrations, ultimately rendering nonhazardous conditions. The threshold cloud size depends upon the type and quantity of total explosives used and the cloud's thermodynamic condition. Though the scaled theory works for fume clouds with irregular (odd) shape, an equivalent upright cylindrical form is useful for rendering simple riskhazard scenarios. The cylinder's projection downward on the underlying terrain yields a circular 'shadow' marking the region threatened, thereby permitting a rough estimation of the potential hazards, were the cloud to settle down there. Wind causes the cloud to drift while it expands, so the shadow travels while it grows, until the risk hazard process is truncated at the nonhazardous threshold. The overall relative fume toxicity (RFT) is taken from the traditional Russian RFT rule, which utilizes only the two fume components that tend to dominate the resultant toxicity: carbon monoxide (CO) and total nitrogen oxides (NOx). Tabulated constants that characterize the fume spectrum in the cloud model were resolved for ammonium nitrate (94%) with fuel oil (6%), ANFO-94/6, using a refined thermodynamic work-principle. Comparable results were found with the reduction factor technique, when test results from the underground fume chamber were readjusted to reflect nominal field shooting conditions.

By L M. Foster, J R. Kellett, G A. McMah

The Great Artesian Basin (GAB) contains one of the largest reserves of fresh water in the world. The volume in storage is enormous, being estimated at nearly 65 000 million megalitres (ML). Development of this resource, dominantly for the pastoral industry, began in the late-1800s and quickly accelerated. With exploitation of the resource, artesian pressures declined almost as rapidly. This loss of head is a result of the total discharge from the basin and much of this discharge is waste of water. The waste through uncontrolled bores and inefficient distribution systems still amounts to about 75 per cent of all discharge. However, the volume in storage has hardly been depleted. The major concern is the effect of withdrawal on artesian pressures. Due to the size of the Basin, the relatively flat gradients and low permeability, the movement of water through the aquifers is extremely slow and independent of recharge. Hence, the normal concepts of sustainable yield (ie discharge should equal recharge) cannot be applied to the Basin as a whole as travel times do not allow for the effect of recharge to be seen away from the outcrop areas within management timeframes. The large volume in storage, though, can provide an extensive buffer to the impacts of temporary water needs. This effect should be considered when assessing the acceptability of fixed life projects such as mines and the extracted volumes from their operations. Identifying a sustainable yield involves balancing the acceptability of the economic, environmental and social costs with the associated discharge and fall in head, to arrive at an acceptable balance.

Jan 1, 2003

By Robert B. Parsons

"Two recent decisions by the Canadian courts could reduce the taxes paid by many profitable mines in Canada. At a time when the mining sector is hurting from an ever increasing tax burden and soft prices, the results of two cases are welcome news. Mining companies are well advised to check prior years' tax returns in the context of these developments. IntroductionSince 1976, the income tax legislation has provided a reduced rate of tax for taxpayers engaged in the mining of mineral resources, through the mechanism of the ""resource allowance"". The deduction given for the resource allowance effectively reduces the federal rate of tax by one quarter on resource profits. In general terms, ""resource profits"" are defined to include a taxpayer's income from: the production and processing in Canada of ore to any stage that is not beyond the prime metal stage (or the pellet stage or its equivalent in the case of iron ore); and, royalties computed with reference to the amount of value of production from mining operations in Canada.In computing income from these sources, the taxpayer must deduct expenses that may reasonably be regarded as applicable to those sources, with the exception of expenditures for Canadian exploration and development or financing costs.As a result of the mechanics of the calculation of the resource allowance, one quickly realizes that the lower the expenses deducted from the resource profits, the higher the resource profits and consequently the higher the 25% resource allowance. The impact of the recent court cases is to narrow the range of expenses which are required to be deducted in the determination of the resource profits.The two cases are outlined below."

Jan 1, 1991