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By Daniel Roy, Danielle Bouffard, Antoine Berton, Simon Gariépy

Commissioning a mineral processing plant has always been a challenging task. The process includes pre- operational verification, dry and wet commissioning, and a gradual ramp-up to full production, all of which must be executed within the shortest possible timeframe, requiring numerous highly interdependent tasks to be conducted concurrently. This phase is under scrutiny by shareholders, corporate management, and other stakeholders who are keen to see a return on investment as the operation starts yielding results. Despite extensive documentation in the literature highlighting its significance, the impact of the commissioning phase remains underestimated in contemporary mining projects. This paper provides an overview of the commissioning process and its associated challenges before focusing on a critical success factor: building a dedicated commissioning team with the required competencies and personality profiles. The roadmap to achieving an efficient plant start-up is outlined. Drawing on over 15 years of experience with more than 20 concentrator commissioning and start-ups, a general framework is presented to maximize success. This method emphasizes the crucial role of the operation and metallurgy team in supporting these projects. Finally, insights from Soutex’s involvement in multiple start-ups are shared, offering lessons learned that emphasize best practices and challenges encountered in expediting the ramp-up process while maintaining high Health, Safety, and Environment (HSE) standards.

Feb 1, 2025

By W R. Adamson

"Optimisation of drill and blast design and engineering can deliver a significant positive impact on the profitability of any mining operation; however, true engineering of the blasting process is less common than might be thought. The paper that follows explores this gap and suggests a process control-based approach to the challenge.The concept of applying modifications to drill and blast designs in order to achieve efficiency improvements in downstream mining processes is far from new. However, the author suggests that the practical application has become less than rigorous in a number of different sectors of the mining industry in a wide range of countries.There is a common tendency for the design process to become simplified to the point where the objective is merely the communication of instructions to field implementers (drillers, explosive suppliers, blasters, etc). In effect ‘design’ often degrades to ‘cut and paste’ with consequences that vary from mild to critical, with respect to the profitability of the business.Engineering of the drill and blast process involves the design function, not on a one-off basis but rather as a component of a more complete cyclical process that includes a statement of objectives, a design based on a suggested hypothesis, field measurement of results, comparison with the target ‘set point’ and the application of control measures followed by new measurement, including interpretation of the results in financial terms.When applied in this fashion, engineering provides practitioners with the means to optimise the drill and blast impact on the full spectrum business result of the mining activity.These concepts are discussed with reference to a surface gold mining operation applying run-of-mine heap leach extraction. Engineering optimisation by adapting process control and measurement techniques is demonstrated to be a key component of the solution set applied to generate enhanced operations productivity and stakeholder value. It is shown that a combination of rigorous measurement, model calibration and hands-on quality assurance/quality control facilitates the creation of a road map to profitability, stressing the need to consider economic trade-offs between operational expense (investment) and measurement of enhanced value (return on investment).The process, however, does not cease at this point. Implementation of true design practices, incorporating innovation and discipline in implementation or execution can drive the process to deliver demonstrable, technically validated outcomes. Furthermore, these technical results can be related to financially quantifiable impacts. However, this accomplishment does not guarantee that these gains or savings will reach the bottom line of those mining, quarrying and construction companies that begin the process with such high hopes.CITATION:Adamson, W R, 2015. Application of engineering discipline and a full-process optimisation focus – productivity to profitability without profuse pruning, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 3–12 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 24, 2015

By AIME AIME

MINERAL production of the United States is valued at over five billion dollars a year at present and the industry employs close to a million workmen, yet such maps as are available that might indicate the geographical distribution of this industry show only the location of coal and oil fields and of other mineral deposits. No recent map is available that shows this distribution in a quantitative way. The purpose of the maps and graphs here presented is twofold: (1) to give the mining engineer a clear conception of the relative value and the pattern of distribution of minerals in the United States; (2) to test the so-called block-pile (or grouped pillar) system of statistical mapping, which makes this presentation possible. (I discussed this method of mapping in an article which appeared in Economic Geology in 1939, Vol. 15, p. 185-188.)

Jan 1, 1941

By Kadri Dagdelen

New underground coal mines have become increasingly expensive to open. A simple drift mine producing a raw coal product can cost as much as $50 million while a new shaft mine producing a washed coal product can cost up to $200 million. As a result, few if any speculative new mines are constructed. Normally, a long term coal supply agreement is needed to justify new mine projects. Negotiating a supply agreement prior to production start is difficult. Pricing must be based on estimated rather than historic costs and coal quality must be estimated from core hole samples versus actual shipments. Further in todays competitive coal markets, there is little margin for error in either price or quality.

Jan 1, 1983

By C. R. Nailler

Two recently published papers describing the use of psychological tests for selection and placement of coal mine personnel have created considerable interest within the Coal Industry, one paper, published in the April 1957 "Mining Congress Journal," entitled "Personnel Evaluation and Training," discusses the use of tests by the Christopher Coal Company, The second paper, published in the "West -Virginia Coal Mining Institute's 1957 Report" and in the September 1957 "Coal Age," entitled "Testing to Select Better Personnel for Coal Mining Today," outlines Hanna Coal Company's test and selection procedures. Since these rather detailed sources are readily available, and to avoid repetition of the material in them, we will confine this paper to a very brief review of the essential steps already taken by these companies and a more extensive look at newer material. Briefly, the Personnel Managers, Mr. Harold L, Durrett and Mr. Albert M,. Rowe, of the Hanna Coal Company and Christopher Coal Company, in conjunction with Dr. Quin F, Curtis, Head of the Psychology Department of West Virginia University, developed two different groups oftests for coal mine personnel, The first group oftests was designed to assist in the selection of supervisors. These tests of the supervisory group were "The California Short Form Test of Mental Maturity - Advanced Series," which gave an I.Q. rating, and the second test is known as "The Minnesota Multiphasic Personality Inventory," which measures several personality characteristics, These tests must be given, grade, and interpreted by a person trained in psychological testing. As a result of testing all of Christopher's supervisory employees (seventy in number) by this method, and then comparing the individual results with the individual ratings of the foremen on the job, a so-called foremen's scale was developed. If this resulting foremen's scale had been used to select the foremen who were rated as, the best men in on-the-job performance, it would have correctly identified seventy-four percent of that group.

Jan 1, 1958

By O Omidi

Selection of delay times to optimize fragmentation has been a controversial topic among researchers and blasting practitioners. This paper reviews previous experimental information and presents the results of new tests conducted in small blocks constructed using a commercial grout. The effect of the delay on the average fragment size, coarse fragmentation and uniformity of fragmentation is discussed. Fragmentation was coarser at extremely short or extremely long delays, while a fairly constant average size was obtained at a variety of intermediate delays. Uniformity, defined as the slope of the fragmentation distribution through the average fragment size, was poor at short and very long delays and relatively constant at the intermediate delays. Some tests attempted to minimize the effect of gas penetration by lining the boreholes with copper tubes. When this was the case average fragmentation changed marginally, while uniformity was significantly affected by delay and was typically smaller than in the unlined tests.

Jan 1, 2014

By J. F. Myers, F. M. Lewis

C. G. McLACHLAN*-I have read this paper with considerable interest and wish to congratulate the authors on the care with which they carried out their experiments and for the detailed sizing data they have presented. 011 the other hand I do not feel that these data establish their contention that "with other factors the same, the work accomplished in a fine crushing rod mill is directly proportional to the rotating speed." My reason for making this statement is that their conclusion is based on the percentage of minus 65 mesh material produced at each of the speeds at which their tests were run. The rod mill is, however, not a fine grinding machine and therefore figures based on minus 65 mesh production are figures outside the range at which it operates to best advantage. Further, if rod mill performance is to be judged on the production of such material it should have been established that a rod mill will produce it as effectively as a ball mill. To check this last point I have gone over some of the rod and ball mill grind-ing figures for our Waite-Atnulet operation and find that the ball mill at that property produces more minus 65 mesh material per horsepower than the rod mill. Moreover, this comparison is even more favorable to the ball mill if it is limited to minus 100 mesh production. It therefore seems to me that the most satisfactory basis on which to try to com-pare the performance of the rod mill in the present case is by taking a weighted average of all the new surface produced per horsepower. W. H. Coghill3 has published data which can be applied to the sizing figures presented by the authors, and if this is done the units of new surface per horsepower produced in the Tennessee tests are as follows: Admittedly the increment of increase in new surface per horsepower shown in the foregoing figures is not great, but its trend is nevertheless definitely in favor of slower speed operation, for the conditions under which these particular tests were run. I also feel that some information regarding liner contour should have been given as I think it will be found that a mill which is equipped with liners which lift the rod load can be run at a slower speed than a mill in which the liners are comparatively smooth. J. F. MYERS and F. M. LEWIS (authors' reply)—The position taken by Mr. McLachlan is to be respected even though we are all aware of the faults of surface considerations. As he points out. the increment of increase is very small. It is so small in fact that for all practical purposes it does not conflict with the conclusions of the paper. The authors appreciate Mr. McLachlan's comprehensive study of the data.

Jan 1, 1950

By X Hu, Z Pokrajcic, R Embry, P C. Stewart, J Carpenter, E Jones

Whilst the value of Pit to Plant and Mine to Mill optimisation has been proven since the 1990s, sustaining the productivity and efficiency gains typically requires ongoing test work, blast trials, plant surveys, and model calibration services. In contrast, the input to digital twin Pit to Plant or Mine to Mill optimisation is tens to hundreds of millions of tonnes of standard mine operating data. This paper presents a series of digital twin case studies from across the mine value chain, including machine learning testing methodology, model accuracy statistics and the application of Shapley Additive Explanations (SHAP) for model interpretation. These case studies demonstrate how machine learning and data fusion ore tracking connects hundreds of millions of tonnes of downstream performance data to produce digital twin models (operating models that are continuously updated and integrated into the wider Mine to Mill/Pit to Plant ore tracking system). Digital twin modelling software has been used to add block model variables for dig-rate, crusher and mill throughput, recovery (tailings grade), lump yield, product grade and product quality, fines yield and fines in lump. Block-by-block predictions are added to the geological resource and grade control block models as new block model variables. These new block model variables are used across all mine planning time horizons from life-of-mine planning to daily schedules. In addition to the materials handling and geometallurgical prediction case studies, the paper also presents digital twin case studies for drill and blast simulation and plant set point optimisation. The case studies show how digital twin simulation enables drill and blast engineers to simulate the effect of different blast designs in different blast domains using the mines operating data. Plant set point optimisation applies mathematical optimisation algorithms to the machine learning model to provide live operational decision support to metallurgists and plant operators. The digital twin machine learning case studies demonstrate a digital and sustainable paradigm for Mine to Mill and Pit to Plant optimisation.

Jun 22, 2022

By Christian F. Baiz

The author will present a discussion of the steps which must be taken by the prospective developer of a small mining operation to establish technical credibility when seeking financial backing. Particular emphasis will be given to the differing levels of technical work (and their relative cost) which must be accomplished to supply the information necessary to satisfy potential investor groups, whether they be other mining companies, equity investors, or financial institutions such as venture capital firms or commercial banks.

Jan 1, 1981

By H. H. Richards, Ray L. Tobie, L. A. Thomas

GENERAL DESCRIPTION Since the beginning of operations, with the exception of a small tonnage mined by slushing, ore extraction has been by full gravity caving. Formerly, a checkerboard sequence of block undercutting was followed with the even-numbered blocks in one panel and the odd¬numbered blocks in the adjacent panel being mined. As these blocks were depleted, the intermediate or pillar blocks were mined (Fig. 1). Following this checker¬board, the mining sequence went through a number of changes, finally evolving into diagonal retreat panel cav¬ing by blocks (Fig. 2). The numbers in Fig. 2 indicate the sequence in which blocks were undercut. Gaps in the numbering sequence indicate undercutting on the level outside the illustrated area. Geology The ore body is a low-grade deposit of chalcopyrite mineralization disseminated throughout structurally weak, highly fractured, strongly altered granitic host rocks. It takes the shape of a gently dipping elliptical cylinder consisting of an ore shell of variable thickness surrounding an interior waste core. Major and minor axes of the mineralized cylinder are 1524 m (5000 ft) and 762 m (2500 ft), respectively, and length approximates 2438 m (8000 ft). Ore is sufficiently fractured to break readily into medium-coarse size. The igneous rock complex containing the ore body is covered by a wedge-shaped blanket of Tertiary con¬glomerate which was brought into place by faulting along the major regional structure of the San Manuel fault. Thickness of the conglomerate cap varies from only 9 m (30 ft) at the east end of the ore body to more than 610 m (2000 ft) at the west. Structurally, the con¬glomerate is much more competent than the igneous host rocks and, when caving, it breaks into massive chunks. Conglomerate boulders seen in drawpoints underground are very coarse. The total rock column over the initial mining area of the 1415 grizzly level was 354 m (1160 ft) of which 122 m (400 ft) was ore, 79 m (260 ft) was leached igneous capping, and 152 m (500 ft) was conglomerate above the San Manuel fault. Diamond Drilling: From 4572 to 7620 m (15,000 to 25,000 ft) are drilled annually from underground workings to delineate the ore body. MINE DEVELOPMENT Haulage Level In the south or main ore body (see Figs. 3-6), with the exception of the draw and transfer raises, all the extraction openings are concreted (Seaney and Tobie, 1965). The haulage panel drifts, which are 18 m (60 ft) below the grizzly drifts, are first driven with pre¬concrete ground support. The drift, which has an arched section, then is concreted using mobile collapsible steel tunnel forms. The haulage drifts leading from the pan¬els to the hoisting shafts are not concreted. After the panel drifts have been concreted, the raise stations from which transfer raises will be driven are constructed and the raise-station ore-drawing chute is installed. The chute is prefabricated of A-36 steel with undercut guillo¬tine gates made of abrasion-resistant 2.5-cm (1-in.) steel plate powered by 20-cm (8-in.) air cylinder installed on each side of the raise station. Transfer Raises The transfer raises are lined with 15 x 20-cm (6 x 8-in.) cribbing and are 1.22 m (4 ft) in the clear. Each cribbing is protected from wear by a high carbon steel angle which is nailed onto the cribbing. The transfer raises are driven from each side of the raise station on an angle of 1.1 rad (63°). Each raise con¬sists of a main and a backover branch. The transfer¬raise driving crew consists of two men working one shift only. Grizzly Drifts After the transfer raise reaches the grizzly level, the grizzly drift can be driven. The grizzly drifts are spaced at 10.6-m (35-ft) centers and are driven parallel to the long axis of the ore body (see Fig. 2). This drift is driven by a two-man crew working on one or more drifts at a time using feed-leg machines. The eight grizzlies in the 42.7-m (140-ft) long drift are spaced at 5.3-m

Jan 1, 1982

By J. M. Beck

Mineral property appraisers engaged in eminent domain actions on properties for which mining is the highest and best use must be fully competent in all phases of mineral resource estimation, mine project development, and mine operations (or retain the requisite competent assistance), as well as educated in eminent domain appraisal (USPAP Competency Rule). Failure to ensure such triggers the issue of appraisal competence and demonstrates a flagrant disregard of the myriad code(s) and guidelines to which the appraiser is subject. The cavalier assertion of some vague, undefined “latitude” in the valuation process does not exonerate the appraiser from a disregard of the USPAP Competency Rule. Lack of independence (i.e., “advocacy”) in mineral property appraisal is the usual result of a weak background in mining and/or appraisal theory. While it is readily apparent to those able to recognize it in reports and testimony, judges and juries cannot be expected to detect or recognize purposefully misleading (or even fraudulent) valuation concepts or testimony. Purposeful deception by the appraiser can lead to specious over-compensation of the property owner (thus victimizing the taxpayer); or, a failure to provide appropriate and just compensation to the property owner – yet, the purpose of an eminent domain proceeding is to leave the property owner no richer or poorer as a result of the taking. This paper highlights some of the deceptive practices encountered in litigation settings and raises issues of competency, professional ethics, and the effectiveness of the inherent enforcement capabilities within those institutions awarding professional certifications. INTRODUCTION The practice of eminent domain mineral property appraisal requires (particularly with respect to undeveloped mineral properties) that the appraiser possess the requisite level of competence in all phases of mineral resource estimation, mine project evaluation, mine development, and mine operation (through closure). To the extent the appraiser lacks such competence, it is incumbent on the appraiser not only to divulge this lack of expertise but also to seek competent assistance in the performance of the appraisal. This competence or expertise can only be obtained through a combination of appropriate and relevant technical education and direct mining industry experience. There exist a number of professional certification and/or credentialing authorities that speak to such competency. In a similar manner, eminent domain mineral property appraisal (as the term implies) also requires that the appraiser possess the requisite level of competence in the practice of eminent domain appraisal. This competence or expertise can only be obtained through appropriate and relevant education, direct knowledge of appraisal theory, particularly as it relates to the concept of eminent domain, and licensure.

Jan 1, 2019

By A. D. Wunderlich

Providing a safe & secure environment for your employees and other company assets is absolutely necessary in our litigeous society. Security hardware is no different than computers or other technical equipment, in that new equipment is developed each year that makes older equipment obsolete. This presentation will help to explain how your existing security system and security procedures can be updated to meet industry standards without the expenditure of a great deal of money. If you are concerned about potential security problems and how to address these problems, this presentation is a must.

Jan 1, 1995

By R. Cook

Knowledge based applications are becoming important to Associated Manganese for efficiently dispatching ore of appropriate grades to customers on time. The G2 expert system shell has been used to develop blending and scheduling applications using a combination of object-oriented rule based, procedural, and heuristic approaches. The blending application, for example uses a heuristic approach for creating blends from thousands of small stacks of manganese ore of various grades and sizes, to meet customer specifications while fully exploiting the available inventory. Data capture and data warehousing have become important issues, and the Internet shows strong potential for distribution of pre-processed information.

Jan 1, 1997

By A. B. Stickney

UPWARDS of 200,000 engineers in this country are sufficiently interested in engineering as a profession to have joined a society, but not over 10% of them belong to any one society. There is a widely-felt need of an over-all organization of all the societies to act as spokesman for all engineers on matters of common concern. On a local basis, over 100,000 engineers in 35 metropolitan areas have organized themselves into local councils, and are doing an effective job of intersocietal co-operation within their sphere of activity. In the last few years much has been said and written about a similar organization on a national scale. Everybody wants iteverybody is talking about it-it's in the air-it's coming-it's inevitable. Although it is no longer necessary to talk about why or whether there should be such an organization, there is no such unanimity about what it should be like. This paper outlines a proposed organization by answering four questions-who, how, what, and who will pay for it.

Jan 1, 1946

By Alexander Filotti, Richard Kalson

"1. INTRODUCTION- WHAT IS P3 OR PPP ?The Public Private Partnership (PPP or 3P) is a project delivery scheme based on the government providing land and/or a concession agreement, and on a private entity providing the design, construction, financing, operation and maintenance of the project for an extensive duration of time (up to thirty years). At the end of the operation-maintenance period, the project is turned over to the public entity, which fully owns the project at all times. While there are many PPP delivery schemes used around the world, for the present paper, we are going to analyze the impact of the Design-Build-Finance-Operate-Maintain (DBFOM) scheme on the deep foundation specialty subcontractor. There are couple of reasons that the PPP delivery system started to be used and implemented not only by developed nations (e.g. United Kingdom, USA etc.), but also by the International Development Bank for delivering major infrastructure projects in developing nations. From the point of view of government agencies, some of the reasons to use PPP are the following:??The primary use of private capital in an era where borrowing and/or supplemental taxation represents too much of a political risk. Budget deficits and taxation limits are extremely hot topics in every election (national or local) and the level of education of the electorate in this area is making it more and more difficult for politicians to use borrowed funds and additional taxation finance sources for public projects. At the same time, we see an increase in the social expenditures of the government in parallel with a needed increase in expenditures on infrastructure due to aging and neglect.??Bundling the construction risks with the operational and maintenance risks naturally pushes the private entity to increase the level of innovation and communications in the primary phase ( the construction phase) in order to develop future process based upon the innovation and communications utilized in the operation and maintenance phase of the project. This is true if contractual incentives are properly structured because “all revolves around incentives. In a world of ‘incomplete’ contracts, where it is difficult to foresee and contract about uncertain future events, it is important to get the incentive structure right” (Grimsey and Lewis, 2004).??The transfer of very expensive risks such as differing site conditions, schedule, design, construction, maintenance and operation costs from the public authority to the private entity.??The timespan of development and construction of a PPP project is usually shorter than the traditional procurement process (e.g. “ the I-595 P3 provided capacity improvements fifteen years sooner than a conventional plan would have offered. In Maryland, an innovative expansion of the Seagirt Marine Terminal in the Port of Baltimore was completed two years ahead of schedule due to the P3 model. As a result, the Port of Baltimore is only the second port on the US East Coast to have unrestricted access to both a fully functioning 50-foot channel and 50-foot berth.”)"

Jan 1, 2017

By B. Garcia-Egocheaga, J. Rutten, N. Goicoechea, U. Meurer, Mager K., W. Saage, Simonettim F.

Because of the increasing use of zinc as an active and passive anticorrosion agent for steel, leading to constantly growing return rates of galvanized steel components, especially through the automotive industry, major Electric Arc Furnace (EAF) flue dust amounts with higher zinc contents will accumulate in future. Landfilling of steel plant flue dusts is no longer allowable for ecological reasons. These dusts are classified as hazardous by law. Waelz technology is safe and reliable. The range .of treatable feed materials has been extended by process modifications and state-of-the-art offgas technology. Waelz oxide, the product, is delivered to metal smelters for zinc production and the byproduct, Waelz slag, can be used in road construction. Despite the fact that Waelz technology is among the best available techniques (BAT), it is continuously being optimized further with respect to energy input, product and offgas quality in order to comply with the ever more stringent environmental regulations. However, if these flue-dusts are treated, the loops between the steel and the zinc industry can be closed by reusing recovered zinc which in tum leads to savings in natural resources and a more reasonable use of landfills.

Jan 1, 2000

By H. C. Fowler

Hydrogen sulphide associated with the gasps and vapors from certain crude oils now produced in the United States has forced a serious health and safety problem upon the petroleum industry. Although the presence of hydrogen sulphide in or occurring with Mexican crudes has been known for some time, it was not until recently that crude oils which give off poisonous amounts of hydrogen sulphide have been produced to any extent in the United State. The injurious effects of this poisonous gas were first recognized by the refiners along; the Atlantic and Gulf Coasts upon receiving shipments of crude petroleum from Mexico. The problem of combating the hazards of the gases and vapors given off by this petroleum become more important as the use of Mexican crude increased. In 1925, the Bureau of Mines and Public Health Service under cooperative agreement with the American Petroleum Institute, studied the causes rend effects of hydrogen sulphide poisoning. Bureau of Mines Bulletin 2312 is report of this investigation, and although written with special reference to refineries, it nevertheless contains much information that is of value to the producer of petroleum.

Jan 1, 1927

By John A. Allan

Introduction There are times when meditation on the past is worth while. Too often does it happen that in the busy routine there appears t9 be little time for reflection, and little good or benefit to be derived from what has already taken place, or what has become past achievement. Under conditions such as those that prevail at present, consideration is being given to many subjects that a few years ago were not looked upon as worthy of time or thought. The temporary lull in industrial development is permitting of a stock-taking investigation, a perusal of past activities, and a planning for future development with the return to normality. It is not proposed to include much new data in this address, but the endeavour will be made to survey, in resume, the sequence of events which led up to the birth of the mining industry in Canada, and to show how, as new discoveries were made, the centres of interest changed from time to time until mineral development extended across Canada from the Atlantic to the Pacific. It will appear, also, that external causes have accentuated mineral development at one time and retarded it at another. Early Records A, historical background to the mining industry extends even to an earlier date than the discovery by white men of that part of the continent of North America represented by Canada. It has been stated that the aborigines were still in the neolithic stage when the white man arrived. One metal only was known to the natives, and that was copper, obtained from possibly many parts of Canada, but particularly from the shores of lake Superior in Ontario, from the Coppermine river on the Arctic coast, and from die coastal regions of British Columbia.

Jan 1, 1933

By L. D. Clark

Pay-out, the ratio of capital expenditure to annual cash return can be very revealing when employed to gage the merits of a proposed mining venture. It is a quantity, numerically but not physically equal to a factor, by which cash return may be discounted to equal required investment. The fewer the pay-out years, the greater the average annual earning power of the project. Considerable material has been written in the past about the most important and difficult problem mining management faces in evaluation of a property: the optimum production rate for the venture. What daily capacity should be adopted for the proposed operation that it may be the most rewarding to those underwriting it? H.C. Hoover has said, "The most important objective is the least cost per ton mined; and minimum working costs can only be gained by the most intensive production." Theoretically and practically, the quicker the ore is removed, the more profitable should be the venture because of the saving in fixed charges, the consequent lower unit costs and the interest unearned by the profit from the unmined ore. Yet, such performance will be tempered by policy and a restraint imposed by the ratio of capital expenditure to annual cash return. * The 'Annual net profit after taxes but including depreciation and depletion allowances. former will be based upon an analysis of the economic climate anticipated, with its many ramifications including the demand for the product, prices, tax laws, the conduct of labor and related wage scales. The variables and intangibles involved in estimating the optimum production rate for a mine do not readily lend themselves to mathematical relationships or equations and the problem can become complex indeed. The more readily applicable and relatively faster appraisal method will be used which, in addition to being reasonably adequate in most cases, will serve as a guide, should a more expanded and detailed estimate be desired. The first question is what is company policy with respect to the rate of investment return? This will depend on that significant period of time referred to as the pay-out, which can be defined as the estimated interval during which capital investment is returned through application of annual cash return to its recovery. Expressed another way, it is the ratio of capital expenditure to the annual cash return. For example, if the capital investment is $C and the annual cash return is $A (after Federal tax), then $C/$A = the pay-out period in years. That is to say, if $C = $1,500,000 and $A = $214,000, then which is the mathematical expression for the period of time it takes to recover the funds originally invested in a mining enterprise. The relationship yp = $C/$A can be useful — an expression which requires only the significant tern yp to be fixed; in other words, the long range investment policy. For what is the pay-out period but an expression of that policy in terms of the speed, within practical limits, with which an individual or company may want to recover capital expenditure? A policy by which pay-out will be fixed is imperative. This ratio must lie within relatively narrow limits governed by what is economically feasible. It cannot be too low, rendering the ratio impractical or absurd, nor too great, delaying the return of capital for reinvestment beyond a commensurate interval. What pay-out will govern this policy? Federal corporate taxes would seem to present the best measure. Consider mining in Canada where new mines are exempt from Federal income tax for 3½ yr from date of first production. This exemption expressly allows The Act states: "A corporation . . . i s not required to include the profits . . . for the period of 36 months commencing with the day on which the mine came into production in reasonable commercial quantites." a company to recover capital expenditure during the early stages of production. With such an incentive, it is logical to strive for as much capital redemption as possible during this period. Thus, 3½ yr would be a major contribution to the pay-out in Canada. Furthermore, it generally takes from 1½ to 3 yr to develop

Jan 1, 1963

By J. T. Ryan

IN making a comparison of mine inspection methods in Europe and the United States, it is necessary to have some basis to start from, which makes this subject rather difficult, as such methods are governed largely by the authority given the inspector by the mining laws. In the United States there are 31 coal producing states and territories and 32 different mining laws under which inspectors operate, as one state-Pennsylvania-has both a bituminous and an anthracite code. Some of these codes are distinctly coal mining codes; others are essentially coal mining but apply also to other mines; several codes are sub-divided referring partly to coal mines and partly to other mines, and a few codes are mainly metal mining but apply in part to coal mining. Having all these different codes in the United States and the departments organized in a variety of different ways, there is of necessity a great difference in inspection methods in this country.

Jan 1, 1926