Underground Mine Development, Its Definition And Valuation

THE word "development," as used in connection with .mining, is a rather general term and in most instances must be qualified or explained before the exact thought in the mind of the user is made clear. For instance, by the development of a mining district is often meant its entire facilities of mineral production, such as railroads, towns, mine plants, etc. In speaking of the development of a property its prospecting by test pits or diamond drill borings may be referred to; or it may be the mines, strip pits or quarries from which the coal, ore or rock is won. But, as a rule, when the development of an individual mine is spoken of the idea in mind is the system of underground workings by means of which the mineral is recovered and transported to the surface. It is this character f development that is considered in this paper. The discussion will be confined to the ordinary room-and-pillar, system of mining. practically horizontal coal seams that is used in most bituminous coal mines in this country, and to only two phases of this subject; viz., what is properly included under the head of "Development"' as it appears on the books of a coal company or the inventories of an examining engineer, and how its "value" should be determined -by the accountant or engineer. No absolute rule or definite agreement covers these points, yet these questions are far more than academic. Development is often an important part of a mining company's assets, affecting the amount of its invested capital (and hence its rate of taxation under present Federal income tax laws) as well as the value of its total assets and the amounts chargeable to cost of coal and to depreciation.