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By Robert Martin

New Millennium ?a new project for an experienced mine building team ?Owns 100% of KeMag(Harris Lake) property ?Owns 80% of LabMag(Howells River) property -20% owned by Naskapi Nations of Kawawachikamah ?All founding directors are mining professionals : Geologists or Mining Engineers ?All have extensive experience in the iron ore industry ?The Project Office is located in Montreal, lead by a team of experienced iron-ore professionals Project Overview Geology & Resources Market Prospects Process & Product Development Development Plan Questions

May 1, 2007

By V. H. Valenzuela

Materials in process or in stocks are quite relevant items in almost every plant, particularly in mining operations, where efficiency in rate of recovering material of interest becomes a key issue when production costs are evaluated. A manager requires information to do an effective use of the resources, especially when raw materials are involved. Losses associated to leaking, efficiency in the transformation process, performance of equipment, and operating conditions are a short list of items which must be properly identified and evaluated. Operations supervisors require information in order to keep key process variables under control. Because of these information needs, it is absolutely necessary to carry on a series of activities related with installation and maintenance of measuring equipment, sampling equipment, sample preparation, chemical analysis, statistical analysis, data handling and reports generation. These pieces of data must be managed on a wise manner in order to get the most of it, keeping always on mind data reliability. Normally, information related with metallurgical balance and even more, the metallurgical balance concept, is handled under an accounting criteria which does not allow dealing with the real world. This situation happens because the criteria utilized do not consider aspects such as bias and uncertainty associated with every measurement that affect the quality of the information and therefore conclusions drawn from it. The purpose of this paper is to give a few rules, necessary to follow, in order to develop an adequate Metallurgical Balance System for an operational point of view. The Gaussian approach for error propagation is used as a basis, allowing one to know the actual uncertainty of the balance and the way how it can be improved. A few real applications of this concept are listed, detailing experiences obtained from practice.

Jan 1, 2007

By E. Lee Cameron

Summary Records of the past show that the first mineral production in what is now the Province of Manitoba consisted of salt, obtained about the year 1800 by the evaporation of brine. Also at an early time in our history, the Ordovician limestone at St. Andrews Locks, East Selkirk, and other localities was quarried for use as building scone in the construction of forts and fur trading posts. Both salt and building stone are still produced in Manitoba, although not from the original sources. In addition, there is now a substantial production of a variety of other industrial minerals and their products such as lime, crushed stone, gypsum, peat moss, and bentonite. The annual dollar value of production of the industrial mineral industry in Manitoba is today greater than at any time in our past and is derived from a greater variety of products. At the present time, exclusive of the various gravel pits operated by the Provincial Department of Public Works, twenty companies operating thirty-four separate pits, quarries, or mines are producing industrial mineral raw materials in Manitoba. This paper attempts to outline the development of the industry from its start about 1800 to the present, giving general information on the various materials produced. Some suggestions regarding the possibilities of establishing new industries based on other raw materials are given at the end of the paper.

Jan 1, 1949

By A. C. Stevenson

"There are many critical application issues that affect all AC drives, but there are several that are absolutely mandatory for pulse width modulated (PWM) AC drives. If these rules are not followed, the drive system will have insulation, bearing EMI or noise problems. Pulse Width Output VoltageFigure 1 shows the output current of a typical pulse width modulated (PWM) drive. This is, of course, not a clean sine wave thus will have a lot of very significant harmonics. In fact, the harmonic spectrum is directly related to multiples of the carrier switching frequency plus side bands related to the basic output frequency. A typical spectrum for a PWM source bridge switching at 5 kHz is shown in Figure 2. Notice that the spectrum has multiples of the 5 kHz switching frequency and the number of side bands gets larger as the harmonic number increases.IGBT Switching TransientsWhenever we have PWM inverter switching, voltage transients are formed that propagate (usually at about half the speed of light) down the power cables to the motor just like in a radio frequency transmission line. If we do not terminate these transmission lines (motor cables) properly, the voltage pulses will be reflected when they reach the motor end and will be transiently increased up to twice their original amplitude.This transient voltage rise, shown in Figure 3, is important for three reasons:1. Insulation Voltage Stress — Higher voltage stress in the motor connecting cables and motor insulation will lead to a shorter insulation lifetime. If any of the voltage transient peaks exceed the insulation corona discharge level (partial discharge level), the insulation will gradually degrade with each voltage pulse. When it has been sufficiently degraded, it will then fail.Most new “inverter rated” motors have triple layer insulation which has a 1600 to 2000 volt partial discharge level. This will make them suitable to withstand the double voltage peak transient from a 600 volt inverter. It is wise to make sure of this fact, since a “standard” induction motor will only withstand about 1200 volts. Use of a standard motor in this application would shorten its life drastically. This can sometimes be as little as a matter of hours."

Jan 1, 2000

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

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

Jan 1, 2012

By C. Peña, C. A. Zaror, M. Bustamante, M. Vega

The goal of this paper is to present the carbon footprint of Chilean cathodic copper, as a function of the electricity generation mix, ore grade, and process efficiency. Ore grades and acid leach-solvent extraction-electrowinning (LX-SX-EW) yields in the range 0.5-1.0% and 60-80%, respectively, were considered here. Additionally, electricity supply from two Chilean suppliers, SING (1.0 ton CO2/MWh) and SIC (0.4 ton CO2/MWh) was assessed. Simulation results show that oxide plants located in northern Chile, served by the SING network, feature carbon footprint within 4.3 - 11.4 MWh I ton cathodic copper, as compared with 3.5 - 9.3 MWh I ton copper in plants served by SIC. The footprint was found to increase as ore wade and process yields decrease.

Jan 1, 2011

In the flotation of a copper ore, entrainment of fine silicate and iron sulfide gangue minerals resulted in poor copper concentrate grade. In the cleaning stage, rejection of these gangue minerals was particularly difficult due to severe mechanical entrainment when the rougher concentrate was ground to 10 µm. To reduce gangue entrainment, polymeric depressants were tested. The rationale being that with the use of such polymeric depressants that also possess flocculation power, not only minerals-to-be-depressed can be made hydrophilic, but their particle size can also be enlarged. In this manner both the "genuine" flotation and the mechanical entrainment can be reduced. An effective polymer to reduce entrainment of silicate gangue mineral in sulfide flotation was identified from bench flotation tests conducted on single minerals. It was then applied to the flotation of a copper-gold ore confirming the beneficial role of the polymeric depressant in the reduction of fine gangue entrainment.

Jan 1, 2007

By M. A. Gomez, V. Yahorava, J. A. Strauss

"It is accepted widely that pressure oxidation (POX) is the most appropriate technology for processing of arsenic containing refractory gold ores. However, studies on the stability of various iron-arsenic precipitates formed during POX are limited. Since the behaviour of these phases could have significant practical implications for gold processing plants, it is important to study them in isolation. This paper compares two synthetic precipitates, basic ferric arsenate sulphate (BFAS) and basic ferric sulphate (BFS) in terms of their formation, behaviour during hot curing and cyanidation, as well as their environmental stability. BFS and BFAS were synthesised hydrothermally at 205°C and their mineralogy was confirmed using various techniques. During synthesis, the addition of H3AsO4 into an aqueous Fe2(SO4)3-H2SO4 mixture significantly decreased the iron yield to BFAS in comparison to BFS under equimolar initial iron and acid concentrations. The BFAS dissolution kinetics was slightly faster, as compared to BFS, during subsequent hot curing. Cyanidation test work on the washed synthetic precipitates indicated that the lime consumption of BFAS was three times lower in comparison to BFS, while cyanide consumptions were comparable. Fresh BFS and BFAS precipitates, as well as their cyanidation residues, were found to pass the respective environmental tests in terms of arsenic release.INTRODUCTION Pressure oxidation (POX) is generally viewed as the most appropriate technology for the processing of arsenic-containing refractory gold ores due to the stabilisation of arsenic in the leach residue (Dutrizac & Jambor, 2007; Gomez et al., 2008; Harris, 2003; Collins, Berezowsky, & Weir, 1988). Detailed laboratory studies indicated that several Fe(III)-arsenate type compounds may be formed under typical conditions of autoclave treatment of refractory gold ores (Swash & Monhemius, 1994; Dutrizac & Jambor, 2007; Gomez et al., 2008, 2010; Gomez, Becze, Cutler, & Demopoulos, 2011). The basic ferric arsenate sulphate (BFAS) phase (Gomez et al., 2008), also known as Type II ferric arsenate (Swash & Monhemius, 1994) or Phase 3 (Dutrizac & Jambor, 2007), is one of the most common arsenic-bearing products (Harris, 2003; Dutrizac & Jambor, 2007). BFAS precipitation is viewed as one of the best routes for arsenic stabilisation and performed equally well to scorodite during environmental stability tests (Harris, 2003; Swash & Monhemius, 1994; Dutrizac & Jambor, 2007; Gomez et al., 2008, 2011)."

Jan 1, 2017

By G. C. McKerrow

"Mr. G.C. McKerrow, Assistant Manager of Noranda Mines and formerly Smelter Superintendent attended the meeting to answer questions as to why smelters imposed penalties for too much zinc in a copper concentrate or too much copper in a zinc concentrate, etc.D.W. Bridges -Mattagami Lake MinesWhat limits do you set on zinc and lead in a copper concentrate?G.C. McKerrow - At Noranda, we allow 5% zinc free and charge 25 cents for every unit above that. For lead, it is 1% free and 25 cents per unit above that. Lead is a much more harmful impurity than zinc because it tends to recycle more in the smelter circuit and creates a greater health hazard in the plant.E. Thornton - Sullivan GroupWHat harm does fluorine do in the smelting process?G.C. McKerrow - Fluorine usually does not occur in harmful concentrations in non-ferrous smelters. Fluorides are present in exhaust gases in the aluminum and phosphate industries. If these fumes escape into the atmosphere, they may settle out on forage grasses in concentrations that are harmful to livestock.Thorton - Sullivan GroupI have asked this question other places and have been told that it is hard on brick linings and causes gold and silver to be lost up the stack.G.C. McKerrow - Almost any volatile constituent in a smelter charge will aid in carrying other metal values. To this extent it may be harmful.E. Thornton - Sullivan GroupMr. Tait mentioned before a smelter where they have a copper-tin ore and they pay for copper, tin, bismuth and silver but object strongly to indium in the concentrate. Why would this be?G.G. McKerrow - 1 can't see why indium would be a serious impurity. It does tend to concentrate in flu dusts and if you get enough of it you can recover it and sell it but I have never heard of anyone putting a penalty on it.Question - I once ran into a small copper mine in Peru that had cadmium in the copper concentrate but no zinc. The copper smelter charged a penalty for the cadmium. Why would this be?"

Jan 1, 1971

By Phillip Cancilla, Daniel Roy, Frank Rosenblum

"The manual moisture determination methods employed today by mineral processing plants falls short in providing timely information required for automation control. The costs associated with transporting and handling concentrates still represent a major portion of the overall treatment price. When considering the cash flow of a mining operation, that is governed by both the smelter contract, with moisture penalties and the quantity and quality of the concentrates shipped, an efficient method of on-line moisture content would be a welcome tool.A novel on-line determination system for ore concentrate moisture content would replace the normally tedious classic manual procedure. Since the introduction of microelectronic-based control systems, operators have strived to reduce the treatment costs to the minimum therefore a representative and timely determination of on-line moisture content becomes vital for control set points and timely feedback. Reliable sensors have long been on the “wish list” of mineral processors since the problem has always been that you can only control what you can measure. Today, the task of moisture determination is still done in the classical technique of loss in weight by uncontrolled procedures. These same methods were introduced in the earliest base metal concentrators. Generally, it is acceptable to have ore concentrate moisture content vary within a range of 7 to 9%. Many times, delays in manually achieving reliable feedback on the moisture content results in the moisture varying from 5 to 12% before corrective actions can be made.This paper first reviews the traditional and widely available methods for determining moisture content in granular materials by applying physical principals and properties to measure moisture content. All methods are in some form affected when employed on mineral ore concentrates. This paper describes a unique and promising on-line moisture sensor in two mineral processing applications, which not only automates the tedious tasks but also results in reliable moisture feedback that can be used in the optimization of the de-watering process equipment such as pressure or vacuum filters and fuel-fired driers. Finally, two measurement applications will be presented to indicate the usefulness and to summarize the measurement requirements for the proposed method of employing drag force and mechanical properties of the material itself to determine the moisture content."

Jan 1, 2001

By H. Ewaschuk

"INTRODUCTIONRio Algom's Stanleigh Mill in Elliot Lake began production in June of 1983. The highly instrumented mill treats uranium ore at an average rate of 3900 metric tons per day. To help ensure a good start-up and low operating costs, an extensive training program was undertaken prior to and during start-up. This presentation describes how an unconventional operating crew were combined to form an operating unit with a high efficiency in terms of production and labour utilization. I would like to point out at the outset that the operating philosophy, and the role of the supervisors and the operators as set up at Stanleigh is not unique. Indeed, I have seen the same results at a couple of small plants where efficiency meant survival. However, these situations appeared to be the exception, and it was not readily apparent how similar results could be obtained in a larger plant. A factor that existed at the time was low labour turnover. As in most parts of Canada, jobs were easy to get in the Elliot Lake camp in the late 1970's. This, and other factors, contributed to an unusually high labour turnover. This changed dramatically in the early 1980's. Indeed, Rio's two other operating mills, Quirke and Panel reduced crew sizes at this time to reduce operating costs. As a result all of Stanleigh's operators came from Quirke and Panel with experience varying from 4 to 7 years. The experience that operators had was obviously of benefit and served to reduce the scope of the training program from what would have been required with inexperienced personnel."

Jan 1, 1985

By C. O. Aksoy

There is a long history of coal production in Turkey with electric energy generated from power plants since the 1950s. However, the cost of power generation is high. Therefore, it has become necessary to find a means of decreasing production costs to become more competitive in a global market. This paper attempts to economically minimize the overall operating costs of a dragline-shovel-truck system applied at an open pit mine that has fed the Yatagan power plant since 1979, lowering the lignite production cost, and indirectly, the overall electricity generation unit cost. Systems currently in place, as a result of former optimization studies, are time-consuming and expensive to re-implement to comply with today’s very different geometric and economic conditions affecting mining operations. In such cases, rather than re-optimization, it is more viable to identify the parameters that affect the minimum unit cost, via a cost minimization study, allowing present mine equipment to be utilized more efficiently. Unit cost minimization analyses are subject to the capacity of the pool of mining equipment available, combined with the mining block geometry from pre-stripping onwards. In this overall unit cost minimization study, P&H shovels and CAT 777 trucks with capacities of 15 yd3 and 77 tons, respectively, were used in truck-shovel pre-stripping operations. A 65 yd3 Marion 8050 dragline was used to expose the overburden immediately over the coal seam. Pre-stripping bench heights varied from 8 m to 20 m and dragline bench heights from 20 m and 25 m were evaluated to minimize the unit cost of field operations. Total overburden extended to a depth of 60 m (35 m to 40 m for pre-stripping). Minimization analyses performed on the pre-stripping truck-shovel operation, prior to dragline operations, determined that the shovel bench height should be 15 m requiring a dragline bench height of 25 m.

Jan 1, 2005

By H. Pempel, J. Markowski, P. Ay

"Metal-coated thermoplastic parts find more and more functional and aesthetic applications in the interior and exterior of cars. The vapor-deposited or electroplated coatings are usually composed of a plurality of nickel- and chromium-containing layers, which are applied to copper-containing carrier layers on the polymers. Previously, recycling processes are mainly focussed at the recovery or thermal utilization of the plastics. Targeted and selective recycling of the metallic coatings is usually not carried out. Together with several SME, BTU developed a process, in which a complete and separate recovery of all components in high purity is possible with biotechnological methods. The bioleaching is carried out with iron and sulfur-oxidizing bacteria, especially Acidithiobacillus ferrooxidans. The copper-containing layers are dissolved in the solution; chromium- and nickel-containing particles are precipitated as solids. After the bioleaching, a mechanical separation of the individual metal-containing components and their separate workup are carried out. End-products are metallic copper, a nickel- and chromium-containing solid and the cleaned plastics. The bioleaching ensures a high purity of the end products. Through the use of bacteria, which are also found in nature, the process is environmentally friendly. Compared to chemical leaching using inorganic acids, considerably shorter leaching times can be achieved. In addition to the optimization of the leaching process, the R/D-project also includes the development and testing of the apparatus technology.INTRODUCTION The material complexity of many end-user products has increased in recent years, especially in the fields of electrical appliances, vehicle technology and medical technology. However, the demands on functionality, safety, comfort and energy efficiency still play a greater role in product design as factors such as sustainability and usability. For example, if a car still holds more than 70% of steel in the 1980s, a vehicle nowadays includes a larger proportion of a variety of difficultly separable plastics and composite materials, as well as complex metal composites. This relates in particular to composites made from such different materials as metals and plastics. The processing and recovery of the components of those complex material mixtures is difficult for recycling companies."

Jan 1, 2017

By Lorrie Fava

Two needs in the mining industry, to enable overall process improvements, are open systems and network connectivity in underground mines. The Pando project, a collaboration between Symboticware, Vale and Xstrata Nickel, and supported by CEMI, addresses these issues, and leverages the solution platform to deliver intelligent applications. An open system is one that uses publicly available standards for its key interfaces. Vendor-neutrality and ease of information flow are two main benefits that result from the use of open systems. By facilitating the interoperability of systems, open systems allow information to be available when and where it is needed for decision support. Network connectivity in underground mines is typically limited, with hotspots in strategically chosen areas that are relatively static. Mobile equipment moving through a mining work cycle experiences intermittent connectivity; in this situation, seamless remote equipment monitoring is impossible. The Pando project establishes an open technology platform, adhering to the IREDES and OPC UA standards. It enables the collection and integration of information generated by mobile equipment? seamlessly while there is a network connection, and as a store-and-forward gateway to manage intermittent connectivity. The platform capabilities are leveraged to support embedded intelligent applications. This open platform, the SymBot, is a rugged hardware and software device. The platform complies with open standards for industrial automation and systems interoperability. The SymBot platform is capable of providing advanced real-time decision support at the device level, and is designed to be remotely configurable. Applications being developed through the Pando project include engine monitoring, a dynamic load weighing system, machine location monitoring and automated activity monitoring including production and maintenance reporting.

Oct 1, 2010

By I. Spector

A SHORTAGE of cement in the Prairie Provinces, together with an aggressive policy on the part of the Saskatchewan Government in bringing new industries to the province, combined to create a favourable set of conditions for the establishment of Saskatchewan's first cement plant on the outskirts of Regina. Built by Saskatchewan Cement Corporation Limited, this single-kiln plant, tl1e latest addition to cement producers on the Prairies, began operations in the Fall of 1956. Location of the plant followed the trend of building cement manufacturing facilities in market areas rather than at raw material sources. In 1957, all assets of the Corporation were taken over by Inland Cement Company Limited and the plant and quarry now operate as Saskatchewan Cement Company, an Inland division. The Regina plant's production makes up approximately eleven per cent of the productive capacity of all plants in the Prairie Provinces. At present, two types of cement are manufactured -normal portland and sulphate resisting.

Jan 1, 1960

By Gary Anderson

??Privately Held Corporation ??Incorporated in Delaware, May of 2002 ??HQ in Malvern, PA (just outside Philly) ??Approx 40 employees ?9 Field Engineers ?MSHA Certified ?10 Development/NOC Engineers ?Site Survey/Site Design ?RF Engineers ??Standards Based ?IEEE 802.11 ??Commercial Off the Shelf (COTS) ?Gateworks, Ubiquity, Atheros, Linux Based ??Technology was developed and inspired by the lack of communications during the terrorist attacks of Sept. 11, 2001

May 1, 2009

By P. Walford, C. Mealin, D. Good

"The geology of the Ore Fault Ni-Cu deposit has been reinterpreted in the light of recent studies of the geology of the Neoarchean Bird River Sill Complex and the occurrence of economic Ni-Cu and Zn-Cu-Ag mineralization. The Ni-Cu sulfides are hosted by the lower of two parallel NNW-trending and moderately W-dipping mafic-ultramafic intrusions related to the Bird River Sill Complex. The bod¬ies intruded a bimodal volcanic suite consisting of weakly deformed mafic flows and felsic pyroclastic rocks. The mafic volcanic rocks are geochemically related to the MORB-type rocks of the Lamprey Falls Formation, and the felsic volcanic rocks are related to arc-type rocks of the Peterson Creek Formation. The original pyroxene- and olivine-dominated mineralogy of the sills has been replaced by variable ser¬pentine-amphibole-talc-carbonate assemblages.The Ni-Cu sulfide assemblage exhibits textures and geochemical signatures typical of orthomagmatic sulfide mineralization. The sulfide minerals are associated with cumulate layers of magnetic ferrochromite that range in thickness from a few to tens of centimeters. A later event of Zn-Cu-Ag sulfide mineralization associated with quartz veining and garnet-chlorite alteration along a fault that strikes north, dips vertically, and cuts all rock types. The mineralized fault is cut by the NE-trending Peterson Creek shear zone. Where the Ni-Cu and Zn-Cu-Ag mineralized zones intersect, remnant magmatic features such as amphibolite or cumulate ferrochromite bands occur within quartz veins or local chlorite alteration. The mixed zones contain a very unusual polymetallic assemblage of Ni, Cu, Zn, Ag, and platinum group elements (PGE)."

Jan 1, 2009

By Zhuofei Yang, Jidong Kang, David S. Wilkinson

The fatigue behavior of AM60 high pressure die casting magnesium alloys was studied in a straincontrolled manner. The fatigue test was interrupted every 2,000 cycles for X-ray tomography scanning. The specimen was removed to be scanned on a desktop micro-CT system. The value of using X-ray tomography in a fatigue properties study was assessed with respect to porosity, cracks and fracture surfaces. The 3D analysis and model results showed porosity could be well measured and modelled in 3D. Defects bands are made of pores under 50 µm in volume-equivalent sphere diameter. Larger pores are randomly distributed in the region between two defect bands. Observation of cracks by X-ray tomography occurs in three ways such that the 3D model gives the best illustration of crack-porosity interaction while the other two methods have better detectability on crack initiation and crack tip observation. X-ray tomography is also of value in failure analysis on fracture surfaces. By summarizing X-ray tomography data during fatigue testing and observing fracture surfaces on a 3D model, a better understanding on the crack initiation, crack-porosity interaction and the morphology of fracture surface is achieved.

Jan 1, 2014

By J. Butra

The underground research presented in this paper was carried out in the two Polish copper mines: Rudna and Polkowice-Sieroszowice. The aim of the research was to determine stress field parameters. The measurement method and measuring positions are described as well as the measuring technique adapted to the geological and mining conditions of the Rudna mine and the Polkowice-Sieroszowice mine. The identified values and directions of principal stresses and horizontal stresses and their importance for optimization of mining operation and safety improvement are discussed.

Aug 1, 2013

By Robert B. Parsons

"Canada's mining industry has reason to celebrate the federal government's budget which was tabled on February 26, 1986. The budget contains an important proposal to improve the flowthrough share rules by effectively eliminating the investor's liability to third parties. This proposed rule change and other important budget proposals are the subject of this month's edition of Tax Notes. IntroductionWhile Finance Minister Michael Wilson's February 26, 1986 budget received a mixed reaction from business and labour leaders, the budget was mainly ""good news"" for the mining industry. A long-standing bugaboo in the flow-through share rules will be cleared up, a permanent set of rules will be installed for the tax treatment of Northern allowances, and limited partnerships will apparently be able to continue to serve a useful role in financing exploration programs. Flow-Through SharesThe present rules which apply to an investment in flow-through shares are structured in such a way that the relevant Canadian exploration expense (""CEE"") must be incurred by the investor, and not by the issuing corporation. Obviously, in the case of most flow-through share issues, this requirement that the investor incur the CEE poses a practical problem-the investor typically does not have the expertise or organization to incur the CEE. As a result, an integral part of most flowthrough arrangements is an agreement whereby the investor appoints another party (usually the issuing corporation) as his agent to spend the flow-through funds on CEE on his behalf. Although the issuing corporation might consequently be the party which actually spends the flow-through share funds on CEE, nevertheless the legal structure is such that the investor is the ""principal"" who is incurring the CEE. As such, the investor is legally responsible for any third-party claims with respect to the exploration program. Third-party liability might arise, for example, in the case of property damage, personal injury, environmental infractions, and so on."

Jan 1, 1986