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By H. Lyn Bourne

This is the seventh annual tabulation of royalty information. It is also the first year in which some data have been deleted to make room for new data. The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity. However, some people incorrectly believe that the selling price and the royalty are the same thing. The contract between the owner (lessor) and the mining company (lessee) is the mineral lease. Some clauses that are common to mineral leases include: identification of property, granting clause, reservations, definitions, royalty rate, taxes and title, indemnity, termination, inspection, assignability, successors, and reclamation. There often are variations in royalty rates for a given commodity that reflect differences in location, quality, market conditions or public versus private ownership. History In the time of ancient Rome, the government owned the mining properties by virtue of conquest. It would lease the mines to favored citizens who would pay rent to the State. Various conditions of sovereign ownership of both land and mineral rights continued in Europe until the Renaissance. As the laws evolved for land ownership by private citizens, the concept that minerals belonged to the State (King, Crown, sovereign) continued until about the 15th century. Free miners challenged the notion of sovereign ownership and won the right to discover and claim minerals. But a portion of their production had to be paid to the sovereign - a royalty. So, the original concept of a mineral royalty was a tax on production that was due to the Crown or Church. The term mineral royalty, as it is known today, is a payment to the owner of the mineral rights (formerly the royal owner) for the privilege of mining and producing the mineral commodity. The owner of the mineral rights, the lessor, and the mine operator, the lessee, enter into an agreement to mine the property. The agreement is the lease. While this concept is common, there are some who do not understand that the royalty is a portion of production paid to the owner as agreed on in the lease document. This author has seen reports where the selling price of a commodity has been quoted as the royalty. ("They get 70 cents a ton royalty at their pit and the guy down the road only has a 65 cent royalty.") These reports have been authored by people not familiar with the mining industry. Lease clauses In addition to the amount to be paid the lessor, there are several other items to be addressed in the lease agreement. The following list may not be all inclusive, but briefly describes most of the common clauses any good mining lease should contain. Identification: This opening clause names the owner (lessor) and the operator (lessee), the address of each, and gives the legal description of the property. Granting clause: This part of the lease gives the time period or duration of the agreement and information about renewal periods. It also has language about the exclusive right of the lessee to mine the property. Reservations: If the owner wants to exclude any portion of the property or set some specific conditions about the operation, there needs to be a clause that describes these reservations. Definitions: This section should address some of the technical terms that the lessor may find confusing - short tons versus cubic yards, dollars versus percentage of average selling price, any escalator indices such as consumer price index or producer price index, and material mined versus material sold. Royalty: This section spells out what the royalty rate will be, how often it will be paid, if there is an annual minimum, the pay dates, and how the records will be kept. This section also describes the conditions under which the lessee is exempt from the annual minimum - natural disasters, strikes, governmental actions, or other causes referred to as force majeure. Taxes and title: The lease needs to identify who is responsible for the property taxes, severance taxes (if applicable), and other taxes that relate to the mining activity - taxes on equipment, improvements, or stockpiles. This is a good place in the lease for the owner to certify his ownership of the property and its mineral rights and also certify that no other leases are in effect. The lessees may want language that allows them to pay mortgages or other debts on the property to keep their lease in effect. Indemnity: This portion of the lease identifies that the lessee assumes the risks for lessee's mining operation. Lessor should expect indemnification by the lessee through standard insur¬ance policies - workers compensation, liability and property damage. Termination: Both the lessor and lessee want language that will allow them to terminate the lease. This section of the lease describes the conditions under which one of the parties may terminate the lease (failure of the

Jan 1, 1989

By P J. Willems, B J. Junor

Blackwater Mine is in the central-southern Bowen Basin, immediately south of the township of Blackwater on the Capricorn Highway. The current open cut operation extracts coal from three main seams, designated Top, Middle and Lower, in the Late Permian Rangal Coal Measures cropping out on the eastern flank of the Comet Ridge. Complex geological structures, dominated by E-W normal faults and N-S reverse faults, have significant detrimental effects on coal mining operations. Historical exploration before 2010 involved several types of drilling only to understand structure, coal quality and washability. Hence, although drilling data was combined with limited pit mapping and observation, unknown structures were still often encountered during excavations and led to mining surprises. In 2010 BHP completed 200-line km of closely spaced 2D seismic survey to capture gross and detailed structures followed by fit for purpose structural drilling to confirm major structures in the northern part of the mine. In 2018 a high density 9.2 km2 3D seismic survey was completed in the southern part of the mine. Subsequently, a 17.2 km2 survey was completed in 2020 to cover the northern active mining area. It allowed geoscientists to successfully map previously unknown major faults and seam splits, which could potentially impact the mineability of the area. It is important to note, that faults interpreted using modern high-density 3D data can be interpreted with dramatically higher confidence in the fault dip and azimuth orientation in comparison to the legacy 2D data. Along with targeted drilling, pit mapping and structural interpretation, the outcome adds value to mine planning and operations. This paper outlines recent successful seismic 3D data acquisition and interpretation. In detail, the paper presents case studies on how the data can be incorporated into a structural model to improve geological knowledge, enable geotechnical assessment, and support safe and efficient coal mining in a large and structurally complex mine.

Mar 22, 2022

By K. Burke, G. Zhan, A. Mayer

A cover with capillary barrier effects (CCBE) is being constructed on the AA Leach Pad at the Barrick Goldstrike Mine site near Carlin, Nevada. The purpose of the cover is to eliminate/minimize infiltration of meteoric waters into the leach pad. Laboratory and numerical analyses indicate that Carlin Formation siltstone (TCS), a locally available material, has the necessary hydrologic characteristics when placed on the leach pad to act as a CCBE. A pilot study has been conducted on a small-scale test cover placed on the AA Leach Pad to examine the cover performance under irrigated conditions. The preliminary test results demonstrate that the designed cover is capable of preventing meteoric water infiltration.

Jan 1, 2001

This report presents the results of studies of Kennecott Copper Corporation's tailings embankment at Magna, Utah. The stability studies described were performed on only one cross section of the embankment, utilizing; data obtained from drilling, sampling, and testing, which was limited in nature. The main objective of the data collection was to provide background information to support the overall research effort. Because of this limited scope, it is not possible to evaluate the degree of safety or adequacy of the embankment or disposal system, and the information and data contained in the body of this report must be judged in that light. The first part of this report contains discussion of site geology and seismicity, pertinent information on the refuge disposal system, a discussion of the tailings materials characteristics, a summary of the engineering analyses, and A bibliography. The second tart (appendices) contains basic geologic and engineering data supporting the discussions in the first part of the report.

Jan 1, 1974

By John L. Thames

The benefits of water harvesting as an alternative to conventional reclamation were demonstrated on the Peabody Coal mines in Northeast Arizona. The project produced food crops for four years, and demonstrated that a catchment/crop area ratio of about 2.5:1 was sufficient to obtain sufficient water from the 11 inch annual precipitation to produce garden and fruit varieties in quantities equal to or exceeding national production averages. The economic returns exceeded those of the conventional practice of returning the mine area to rangeland by at least ten fold. Subsidence of the regraded spoil was the only major problem in maintaining the system. Although, water harvesting systems have the potential of providing high economic returns and greater social benefits, as demonstrated by this project they are presently at variance with the strip mining regulation.

Jan 1, 1984

By C. Kleine

Coal sorting with an x-ray-transmission (XRT) sensor has experienced a lot of development since first described by Jekinson et.al. in 1974. Powerful computers and increasingly sensitive X-ray scintillation counters enabled the development of high-performance sensor-based sorting machines. The first industrial installation of a belt-type XRT-sorting for coal is in operation since 2004. It is upgrading high quality coal from 1% ash to 0.7% ash for cathode production. In comparison to the high quality coal which is treated with a belt-type sorter, the chute type sorter has been successfully optimized for high volume coal treatment of lower quality coals. This project was funded by the German Environmental Fund (Project Nr.244444). In cooperation with the RWTH Aachen University and Isambane Processing, CommodasUltrasort(now Tomra Sorting Solutions) conducted extensive pilot test work under production conditions in 2010 for the destoning of power station coal at Arnot Power Station in South Africa. The experience gained during this pilot test phase led to an optimized, redesigned PRO Secondary XRT Chute sorter which is now in operation at a South African coal mine. This flexible semi-mobile modular destoning plant is treating a size range of -120 mm +30 mm at a throughput of 150 tph. The implementation of this plant not only reduces the ash content, abrasiveness index and sulfur content significantly, but also reduces royalties, water treatment and transport costs.

Sep 1, 2012

By W. Sondermann

"AbstractThe construction of a distribution centre of minerals for a global mining and resources cooperation demanded the control of deformations and displacement of the stack reclaimer facilities on very inhomogeneous subsoil conditions. The variation of quality from soft clay with CPT values below 1 MPa up to rock formations were the challenge in design and execution of all the foundation works.The advanced design considerations were resulting in a barrier wall system to limit the deformations of the up to 40 m deep bored pile of the stacker-reclaimers, whereas the layout of the barrier wall and the stiffness of the elements had a major impact on the residual lateral forces to be absorbed by the bearing structure.IntroductionA large international raw material distribution organisation is currently building an iron ore and pellet distribution centre on the north-western coast of Malaysia. The distribution centre will handle around 90 MTPA (million tons per annum) of iron ore and includes accompanying plants for loading and unloading iron ore and pellets, pelletizing plants as well as corresponding storage space for these raw materials. The total storage space extends about 800m north to south respectively 1400m east to west and is about 200m from the coastline. The project area is located in a wide valley basin, bounded by a range of hills to the north. The existence of soil with low bearing capability in the area designated for the plant meant that measurements for ground improvement were required in the storage areas, in order to combine the needs of iron ore and pellet storage areas with requirements of the loading facilities as the overall project demand.Project LayoutThe iron ore distribution centre and the pelletizing facility both consist of an import/export jetty, material handling facilities, pellet plant and the associated infrastructure. This publication describes the execution of ground improvement and foundation works for the loading and storage system, which consists of five rows of stockpiles and four intermediate rows of stacker-reclaimers. The total area of these systems comprises 278,881 m2 (Fig. 1)."

Jan 1, 2014

By J M. Galvin, B J. McKinnon

Lightning Ridge, Australia, is the largest opal producing area in the world. Most opal is mined from shallow underground mines by individuals or small partnerships with the industry having been protected from large-scale development to date. The safety performance of opal mining has lagged both general mining industry standards and community expectations. The application of geotechnical analysis to the opal fields has the potential to considerably reduce injuries and fatalities. With consideration of the local culture, preliminary geotechnical analysis has been applied to some current methods of work utilised at Lightning Ridge. Practical solutions have been advocated and are presented in this paper. Improvements to safety generated by these practical solutions indicate that further geotechnical research at Lightning Ridge is warranted and would be beneficial.

Jan 1, 2002

By K. Ward

The Environmental Protection Agency (EPA) is beginning to provide compliance assistance visits to various industries, including mining, for Emergency Planning and Community Right-to-Know Act (EPCRA) compliance. The EPA inspectors may consist of a multi-media team deployed to review systems and procedures for EPCRA Sections 302, 304, 311, and 312. The Team’s focus may include emergency response plans, training programs, qualifications of personnel, and release notification protocols. This presentation takes a look at the EPCRA compliance challenges faced by Arizona copper mining and processing facilities.

Jan 1, 2001

By Charles Jones

IN the winter of 1902, while occupying the position of mining and examining engineer for the Mountain Copper Co., Ltd., of Keswick, Cal., I had occasion to discuss with the General Manager, among other things, the question of the enormous waste of sulphur in smelting cupriferous, pyrite ore, and to cast about for means to utilize this waste or to render the fumes innocuous to vegetation. The decreasing rate of production of California farms, the consequent need of fertilizers, and the opportunity thus offered to utilize large quantities of sulphuric acid in the manufacture of superphosphates naturally brought the subject to the practical and commercial side of phosphates. I was informed that the company had made efforts to find phosphates in the West, without success. I advised as a start placing inquiries for phosphate deposits on the Pacific coast in the current mining ,journals. This was done, with the result that in January, 1903, from an advertisement in the Mining and Scientific Press we got track of a deposit in Rich county, Utah, through T.J . Wilson, of the Southern Pacific railroad in San Francisco. As soon as snow in the mountains would permit, in May, 1903, I undertook an examination of the property, with the result of recognizing the importance of the find, in spite of its lack of facilities for transportation at a commercial figure. On June 15, 1903, I concluded my report by saying, "This may be one of the world's deposits of phosphates." On Nov. 17, 1903, I concluded my report for the season in the following words : " I have now no hesitation in saying that I believe the Carboniferous formation so largely developed in the Wasatch mountains of Utah and the mountains of the Great Basin will prove to be one of the greatest storehouses of phosphoric acid in the world."

Jan 10, 1913

By G. McIsaac

"This paper discusses the formulation of a linear program with the objective of maximizing the cash flow of the long-term plan of an underground operation. A mine is split into eleven independent ore zones, each characterized by its reserves, required development, and mining method. Based on practical considerations, maximum rates are set for each zone’s development and production capacity. For the total mine plan, a minimum daily production rate is set along with a minimum feed grade to the mill. A maximum daily development capacity is set based on the equipment and labour available. Proven and probable ore is mined preferentially over possible ore in the early years of the plan. Also, the fixed cost of operating the mine is taken into consideration whenever mining activities take place.Once the linear program is solved, it can be critically reviewed, and unrealistic results can be identified. Some resource allocations constraints can then be changed in certain sectors, and new results can be analyzed. “Whatif” scenarios can also be examined, such as determining the impact of hiring a contractor to develop a given sector, or dropping an ore zone completely from the plan."

Jan 1, 2005

By G. McIsaac

This paper discusses the formulation of a linear program with the objective of maximizing the cash flow of the long-term plan of an underground operation. A mine is split into eleven independent ore zones, each characterized by its reserves, required development, and mining method. Based on practical considerations, maximum rates are set for each zone?s development and production capacity. For the total mine plan, a minimum daily production rate is set along with a minimum feed grade to the mill. A maximum daily development capacity is set based on the equipment and labour available. Proven and probable ore is mined preferentially over possible ore in the early years of the plan. Also, the fixed cost of operating the mine is taken into consideration whenever mining activities take place. Once the linear program is solved, it can be critically reviewed, and unrealistic results can be identified. Some resource allocations constraints can then be changed in certain sectors, and new results can be analyzed. ?Whatif? scenarios can also be examined, such as determining the impact of hiring a contractor to develop a given sector, or dropping an ore zone completely from the plan.

Sep 1, 2005

By M. Krasowska

Dynamics of collision and kinetics of the bubble attachment to hydrophobic solid plates (Teflon) of different surface roughness were investigated. The experiments were carried out in such a way that probability of the collision and probability that the detachment will not occur were equal always 100%. Thus, it was possible to determine effect of the surface roughness on the bubble attachment (three phase contact formation, TPC) only. A high-speed camera (1182 Hz) was used to record the velocity variations, bouncing and time of attachment of the bubble colliding with Teflon plates having different surface roughness (5 different plates). Roughness of the plate surfaces was modified in a mechanical way using different abrasive papers. It was found that the roughness had a crucial influence on the time-scale of the TPC formation and attachment of the bubble colliding with the Teflon plates. Despite high hydrophobicity of all plates (contact angles 1100 -115º) it was observed that at the smoothest surfaces (called "Teflon I" and "Teflon II" and having surface roughness below 1 um) there was no attachment during the bubble first collisions. Prior to the attachment four or more "approach?bouncing" cycles of the colliding bubble were observed there and simultaneously the bubble shape varied rapidly within time intervals below 0.85 ms. Time of contact of the colliding bubble with the Teflon plates was very short; 2-3 ms. These results indicate that during that short time of the collision the liquid layer separating the colliding bubble and the solid surface did not reach a critical thickness of its rupture.

Jan 1, 2006

Coal research and related activities in 1964 by the Bureau of Mines resulted in many advances in the production, preparation, and utilization of this valuable natural resource. Mining research during the year was marked by work on hydraulic mining, coalbed degasification, mine drainage control, mine sealing, strip-mine rehabilitation, and quenching of mine-refuse fires. Bureau research continued to produce information leading to increased safety in underground mining. Such research included roof and rib control via bolting and bonding, pressure monitoring of coal and mine rock during mining operations, and development of safety devices for detecting conditions leading to roof falls. Other safety work was continued on methane detectors, coal-dust suppression, and mine ventilation equipment and techniques. Mine explosion and explosives research, mine equipment and materials, safety rule modernization, and safety education and training of mine workmen were continued. Coal storage and preparation work in 1964 ranged from freezeproofing of lignite for rail shipment, through washability studies of coals and washing equipment, to research on new ways to remove ash and sulfur from coal. Electric power production, which accounts for a major portion of the market for coal, received further study. Unique power generation systems, including coal-burning gas turbine and megnetohydrodynamic generators, were intensively investigated. Conventional power systems were improved through continuation of work on furnace performance, powerplant stack gas purification, and engineering and boiler water service.

Jan 1, 1965

By J. Wagner, P. Eger, G. Melchert

In 1991, LTV Steel Mining Company decided to close an open pit taconite mine in northeastern Minnesota, using a passive treatment approach consisting of limiting infiltration into the stockpiles and wetland treatment to remove metals. Over 50 million metric tons of sulfide-containing waste had been stockpiled adjacent to the mine during its 30 years of operation. Drainage from the stockpiles contained elevated levels of copper, nickel, cobalt and zinc. Nickel is the major trace metal in the drainages, and prior to closure annual median concentrations ranged from 1.5-50 mg/L. Copper, cobalt and zinc are also present but are generally less than 5% of the nickel values. Median pH ranges from 5.0 to 7.5, but most of the stockpile drainages have pH greater than 6.5. Based on the chemical composition of each stockpile, a cover material was selected. The higher the potential a stockpile had to produce acid drainage, the lower the permeability of the capping material required. Covers ranged from overburden soil removed at the mine to a flexible plastic liner. Predictions of the reduction in infiltration ranged from 40% for the native soil to over 90% for the plastic liner. Five constructed wetlands have been installed since 1992, and have removed 60-90% of the nickel in the drainages. Total capital costs for all the infiltration reduction and wetlands exceeded $6.5 million, but maintenance costs are less than 1% of those for an active treatment plant. Since mine drainage problems can continue for over a hundred years, the lower annual operating costs should pay for the construction of the wetland treatment systems within seven years.

Jan 1, 1999

By S Grobler, T Fares

Understanding the real utilisation of the available volumetric capacity of a conveyor is key to unlocking latent capacity or ‘debottlenecking’ existing plant. Conveyors are typically designed on the basis of conservative density and ore surcharge angle specifications, and consequently there is often latent volumetric capacity available.Laser scanning measurements of conveyor ore profiles has been undertaken on iron ore conveyors to gain an understanding of the actual surcharge angle and the available edge clearances. Iron ore producers seeking to extract maximum production from their assets have used these measurements to debottleneck existing plant and to revise the design criteria for future plant. The benefit is that latent capacity of existing plant can be unlocked and smaller and cheaper conveyors can be designed for future plant, maximising the return on capital. This paper describes the measurements and results.CITATION:Fares, T and Grobler, S, 2015. Laser scanning of conveyor ore profiles, in Proceedings Iron Ore 2015, pp 549–554 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By Christopher Sammon, Nicholas Turus

"The demand for underground parking in South Florida has increased as a result of changes to the local building code, coupled with developers’ desire to improve building aesthetics and provide much needed walk in retail space for high-end structures. Historically, underground construction was uncommon in South Florida due to the high groundwater level and porous soil/rock. Conventional dewatering methods become ineffective only a short depth below the ground surface and deeper excavations have required a tremie seal solution consisting of wet excavation and the pouring a temporary unreinforced slab under a water head. However, as excavation area and depth increase, the cost and schedule of the tremie seal method become problematic. For these reasons developers and construction teams alike have looked to contractors in South Florida for alternative means of construction.This paper details the construction of two sites in South Florida where Deep Soil Mixing (DSM) technology offered an efficient alternative to tremie seal construction. The Brickell City Centre required excavation of 8 acres to depths of 30 feet, and augercast piles up to 36” diameter and 110 feet in depth. The second site, Jade Signature, required an excavation of up to 41 feet directly adjacent to the Atlantic beachfront. Due to the concerns over differential settlement, the project featured a soil mixed gravity wall that was designed and installed to allow for completion of the tower prior to excavating the adjacent garage.Both projects involved improving every square inch of ground beneath the planned project excavation. The developed DSM seal slab solution creates a nearly impervious excavation at excavation invert with the strength to resist hydrostatic uplift forces. Low permeability site perimeter walls are constructed to complete the sealed excavation and reinforced with either beams or sheet piles for structural support. Augercast piles required for the permanent hydrostatic concrete slab supplement the uplift capacity of the DSM. After DSM and augercast piles are installed from grade, the site is excavated in dry conditions."

Jan 1, 2017

By V. E. Erwin, W. W. Adams, E. V. Walters

"Increased production of explosives in the United States in 1933 compared with 1932 is shown by statistics compiled by the Demographical Division, Health and Safety Branch, United States Bureau of Mines. The figures relate only to explosives used for industries purposes, such as mining, quarrying, and road building, and do not cover nonindustrial explosives, such as ammunition or fireworks. Industrial explosives include black blasting powder, permissible explosives, 5 and high explosives other than permissibles figures in the tables of this report were compiled from reports covering sales by the individual companies manufacture of explosives in the United States in 1933. Because of the close agreement among the several series of figures, the quantity of explosives sold is considered as reflecting production and consumption, and the three terms ""sales"", ""production"", and ""consumption"" are used interchangeably in the discussion unless otherwise stated.Of the principal industries that use high construction operations accounted for the largest percentage of increase in consumption during 1933; metal mining and quarrying also used more of this class of explosives than in the previous year. Coal mining is the chief consumer of permissible explosives; the figures for 1933 showed that bituminous-coal mining used a larger quantity than in 1932, and that anthracite mines also showed a small increase. Although a net increase of less than 1 percent in consumption was reported for black blasting powder, large increases in use of this class of explosives were reported for metal mining, miscellaneous types of work, and bituminous-coal mining. (See table 1.)"

Nov 1, 1934

By D. He

In China, the total reserves of vanadium, reported as V2O5, in stone coal is 118 Mt (130 million st). Recovering vanadium from such a large resource is very important to China?s vanadium industry. The technology now being used to recover vanadium from stone coal has the following two problems in the leaching process: a low recovery of vanadium and high acid consumption. To resolve these problems, a new leaching technology is proposed. The effects of factors such as H2SO4 concentration, liquid-solid ratio, temperature and time, and the types and additions of additives were studied. By adding 1.5% (by weight) CaF2 and leaching the roasted residue of stone coal with 5.4% (by weight) sulfuric acid at 90°C for 12 hours at a liquid-solid ratio of 2 mL/g, the leaching degree of vanadium reached 83.10%. This proposed leaching technology gives a feasible alternative for the processing of roasting residue of stone coal and can be applied in the comprehensive utilization of stone coal ores in China.

Jan 1, 2008

By C. W. Smith

The U.S. Bureau of Mines; Tuscaloosa Research Center, in cooperation with the U.S. Army Corps of Engineers under interagency Agreement No. 14-09-0078-1510, conducted a comprehensive sampling program of 10 upland disposal sites along the Alabama, Black Warrior, and Tombigbee River systems in Alabama. Samples from each site were characterized according to particle size, chemical analysis, mineralogical content, and potential end use. Additionally, samples were subjected to the Toxic Characteristic Leachate Procedure to determine the presence of potentially harmful heavy metals. Based on the results of these studies, each sample was determined to have properties amenable for use as aggregate in general-purpose portland cement concretes and certain asphalt concrete applications.

Jan 1, 2010