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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

MINExpo International is billed as the largest exposition for the mining and mineral processing industry. And the 2012 edition, scheduled for Sept. 24-26 in Las Vegas, NV, is no exception. Put on by the National Mining Association (NMA), attendance at this year?s show is expected to be significantly more than the 38,500 who attended the last MINExpo in 2008. The exhibit will also be quite a bit larger in 2012 than it was at the previous MINExpo. More than 1,800 companies, representing more than 30 countries, will fill the Las Vegas Convention Center. The more than 850,000 sq ft of exhibit space will include the North and Central halls as well as South Halls Nos. 3 and 4. And the Silver Lot outside of the front door, under construction in 2008, will be filled with more exhibitors. The 2008 show attracted about 1,220 exhibitors occupying more than 600,000 sq ft of exhibit space.

Jan 1, 2012

By Henning E. Soderberg, Robert Brien, O&apos

Coal may be the answer to US energy problems, but it also has its drawbacks. If it is crushed, screened, dumped, or moved, the environmental engineer is faced with a dust problem. To control coal dust, at both minimum initial cost and reasonable operating cost, demands a working knowledge of dust control equipment design, as well as the coal handling operation. Here are some guidelines to reduce air volume requirements and cut overall system costs.

Jan 10, 1981

By Ma. X.

Passive seismic imaging is applied in underground mining to analyze the stress redistribution after the occurrence of a major seismic event. The velocity model is established to be utilized in velocity inversion. By comparing the images from velocity tomography on two different time scales, the average velocity of a mining area decreases significantly after the major event. It is highly likely that the stored energy level drops due to the occurrence of a major event. Also, total energy stored in micro-seismic events for each day is summed up and the energy change trend is plotted to illustrate the correlation of energy with a major event.

Feb 27, 2013

By R. Dillinger

In the environmentally conscious social atmosphere today, reclamation in surface mines has become a main issue to the public and the regulatory committees. In response to this increased attention, many regulatory committees have begun to enact more stringent regulations on surface mining operations. Operations across all spectrums of the industry have seen changes. Recently and most visibly the mountain top removal mines have seen several new regulations focusing on environmental protection. Specifically regulatory committees have emphasized a focus on the methods of reclamation and recovery of layers suitable for vegetation. These layers are the most visible once the operation has concluded. Also, these layers have the most human interaction (farming, hunting, and house development). Often times the new regulations enacted are shifting from a performance base to a standards base. The key differentiator being a performance base dictates the final result while a standards base dictates the method to achieve the result. The very nature of many regulations (especially those that are standards based) not only challenges the physical limitations of the equipment used today, they come with a financial impact. For the purpose of this paper, the model will be a surface coal operation, utilizing draglines as primary overburden movers. The coal seam is ten feet thick, the overburden ninety five feet thick, the pits are 150 feet wide, and the dragline is a Bucyrus Erie 1570.

Jan 1, 2011

By Franz Albert Nonnen

Backfill systems have been used for as long as mining activities have existed. Various backfill methods have been developed over the centuries with consideration for geological necessities, the technical means available, security requirements, and available finances. In the past, backfill systems were introduced and upgraded geographically in accordance with local experiences. In modern times, mining engineers participate in international forums for the exchange of knowledge so that backfill techniques and experiences are shared concurrently in mining areas all over the world. Mine backfilling increases the cost of mining so that great attention must be paid to choose a low-cost, reliable, and low maintenance backfill system. Some methods are described in this paper.

Jan 1, 2001

By Michael Gilbert

In the world of tunneling the glamour is in the large diameter, long tunnels, but perhaps the number of projects for small diameter and short length tunnels are greater and generally have higher risk factors. Reasons for these higher risks include both the ?boiler plate? contract provisions used on these types of contracts, the technical specifications related to the tunnel work (versus the pipeline construction), the bid practices including measurement and payment and the construction. This paper reviews and comments on some of the key issues the authors have observed in recent major pipe-line projects that involve a small percentage of tunneling footage of the total contract.

By William G. Pariseau, Mark K. Larson, Heather E. Lawson

Rational design based on engineering fundamentals is essential for the layout of safe, stable shafts and tunnels. Shafts and tunnels including winzes, raises, adits, and crosscuts are lifelines to the underground and must be secure. The contribution of this paper describes a significant extension in existing software previously developed for five important design problems in strata-bound mines such as coal, trona, salt, potash, and some large, lead-zinc mines. This extension in software allows analysis to proceed in three easy steps: (1) preparation of a strata properties file, (2) generation of the finite element model, a mesh, and (3) finite element program execution. Circular, elliptical, and rectangular shaft sections are available for a single shaft, twin shafts, and shafts in a row. Spacing of twin shafts and shafts in a row is a free parameter (pillar width). Tunnel shapes are the same as shafts but include the conventional arched back section. Dipping strata of variable thickness, depth and orientation relative to the excavation of choice are allowed. The analyses are three-dimensional. An elastic-plastic material model based on associated rules of flow and an N-type yield condition for isotropic, transversely isotropic, or orthotropic rock are used for all strata. Example analyses from several hardrock mines are provided to illustrate the three-step process including mesh plotting and plotting of selected results. The goal of this software is to advance mine design technology for improved miner health and safety.

By D. A. Kramer

Ammonia, the principal source of fixed nitrogen, was produced by 16 companies at 31 plants in the United States during 2003. Fifty-five percent of U.S. ammonia production capacity was centered in Louisiana, Oklahoma and Texas because of their large reserves of natural gas, the dominant domestic feedstock. Production In 2004, U.S. producers operated at about 59 percent of their rated capacity. The United States remained the world’s second largest ammonia producer and consumer following China. Urea, ammonium nitrate, ammonium phosphates, nitric acid and ammonium sulfate were the major derivatives of ammonia in the United States, in descending order of importance.

Jan 1, 2005

Nuclear power currently produces about 20% of the electricity in the US, with 104 nuclear power plants located in 31 states. The commercial US nuclear industry contributes over $4 billion annually to US workers in salaries and wages. 25,000 new jobs need to be filled in the next 5 years. There are over 30 new power plants under consideration by US utilities. The operating reactors use uranium oxide fuel enriched to about 4% U235 and fission is the process used to generate heat to form steam to drive the turbine generators. Nuclear energy is an important element in the US generation portfolio and represents the largest producer of nearly emission-free electricity. Most, if not all, of the operating plants will secure an extended 20 years of operation or more. The last plant constructed was ordered in 1978. New smaller, modular reactors are under design to provide less expensive, expandable generation options.

Jan 1, 2011

By K. Holmberg, D. Herriot

This paper by Mr Mclvor is yet another contribution to the eternal controversy surrounding the benefits, or otherwise, of high circulating loads in closed circuit grinding. Throughout the paper it is difficult to establish whether the author is referring to effects relating to the mill, classifier, or to the overall circuit. Table 1 is put forward as indicating the advantage of operating at high circulating loads. From the two (it would be interesting to see more) product sizing points provided in each case, the conclusions to be drawn are that cases one and two have very similar size analyses. The third case, however, indicates a much flatter curve, that is to say, higher fines production and a very wide spread of size ranges. If the objective of this circuit is to provide a closely sized product with minimum overground slimes to the downstream process, then it would appear to be the less "efficient" by far. No data is given for product pulp densities either. The term "efficiency" should never be used without a careful and clear definition. In this case, "efficiency" is used to express an apparent percentage reduction in operating work index (Bond) from the measured "standard" at 250% circulat¬ing load operation. The Bond calculation is itself based upon

Jan 1, 1989

By Y. P. Chugh

A novel dry and wet air dust filter concept was conceived and demonstrated successfully at two mines. A steel-wool and a fiberglass filter, suitable for underground use were identified through laboratory testing and demonstrated in the mine. The steel wool filter was operated with and without water sprays while the fiberglass filter was only operated in the dry mode. The dry steel wool filter provided a dust capture of 37% at a negligible pressure drop. When fine misting water sprays were used on the steel wool filter, the dust capture increased to 51% again with a negligible pressure drop. The filter screen also remained clean and no change in air flow characteristics was observed as a function of time. The dry fiberglass filter however did not perform as well achieving only 11% dust capture while introducing a significant resistance to air flow. This technology is seen to have several applications in underground coal mines.

Jan 1, 2009

It is crucial to reestablish a domestic rare earths minerals production industry to help secure the Nation's clean energy future, reduce the U.S. vulnerability to material shortages related to national defense, and to maintain our global technical and economic competitiveness. Given that the Chinese dominance of the rare earths market has adversely impacted supply stability and endangers the United States and its allies' assured access to key materials, rare earths should qualify as materials either strategic or critical to national security. Further, the U.S. government should facilitate the reintroduction of a globally competitive rare earth industry in the U.S. Realization of this objective requires: ? Developing domestic processing capability so that the U.S. is not primarily dependent on China as a source of rare earth ore, and almost exclusively dependent of China for processing of the ores. ? Providing a mechanism where access to Federal lands for rare earth exploration and extraction is possible, and ? Training engineers to design and operate rare earth ore processing facilities

Jan 1, 2011

By J. Sammarco

Proper illumination is critical to a miner?s ability to detect hazards in underground mines. Moving hazards are often located in the miner?s peripheral field-of-view, while slip/trip/fall hazards are often located in the forward field-of-view. The objective of the research described in this paper was to determine if light-emitting diodes (LEDs) improve visual performance as compared to traditional incandescent (INC) cap lamps. The research presented focuses on comparative studies of a National Institute for Occupational Safety and Health (NIOSH) prototype LED, a commercial LED, and an INC camp lamp. Thirty subjects participated in these studies; ten subjects in each of the age groups: 18 to 25 years, 40 to 50 years, and 51+ years. Visual performance was quantified by the subjects? speed and accuracy in detecting hazards, while visual performance for disability glare was quantified by the use of contrast sensitivity tests. Results suggest that LEDs with a visible spectrum containing a higher concentration of the shorter wavelengths can enable visual performance improvements with respect to disability glare, the detection of moving hazards in the peripheral field-of-view, and the detection of floor hazards in the forward field-of-view. The NIOSH prototype LED cap lamp provided the best visual performance improvements for the older age groups in every test. Disclaimer: The findings and conclusions in this report have not been formally disseminated by the National Institute for Occupational Safety and Health and should not be construed to represent any agency determination or policy.

Jan 1, 2009

By J. F. Lupo

There are numerous mines throughout the world that have open pit highwalls developed partially or wholly in soil or soil-like materials. Soil-like materials are considered to include soils (either transported or residual) and highly weathered rock, which may have soil-like behavior. These materials generally have characteristics or material properties that vary considerably from those of moderately weathered or fresh rock. Given these differences, it is important to consider the characteristics of soil-like materials to design safe open pit slopes. In the design of open pit slopes in soil-like materials, it is important to recognize the behavior of these materials is strongly dependent upon their mineralogy, degree of weathering, cementation, stress history, depositional history, and presence of water. As a result, soil-like materials may contain one or more of the following characteristics that can have a significant effect slope stability and design: - Relict structural features (joints, faults, etc), - Sensitivity to moisture (both wetting and drying), - Zones of alteration with variable strength and drainage characteristics, - Zones of low permeability creating perched ground water conditions, and - Undrained and drained strain softening or strain hardening behavior.

Jan 1, 2011

By Paul Lynch

"Since being reported to the 2012 UMI in Shanghai, the Cook Islands has been steadily developing for the commencement of it Seabed Minerals sector in its large Exclusive Economic Zone which contain a vast and unique Manganese Nodule resource, estimated at 10 billion tonnes1. At the 2013 UMI in Brazil, it was reported that the Seabed Minerals Act had commenced and all the necessary complex Technical aspects of this developmental work was being undertaken. At the 2014 UMI in Portugal, full details of the final developments leading to the opening of the Tender of Exploration Blocks in the Cook Islands EEZ will be presented in a brief but comprehensive method, using Poster displays, Powerpoint and active Website interaction. This will show the drafted Regulations, prepared on best international standards, to address both Licencing and Environmental requirements, to give clarity and security to the Resources Owner, industry and stakeholders. This work in being coordinated by the Cook Islands Seabed Minerals Authority, with the valuable collaboration of many international, regional and national stakeholders, including the Cook Islands NGOs, Marine Resources, Marine Park and National Environment Service."

Sep 1, 2014

By G. L. Mowrey

One critical element of the U.S. Bureau of Mines (Bureau) autonomous mining research program is the development of a reliable coal interface detection (CID) system. Several candidate CID concepts currently being investigated by the Bureau include vibration, passive infrared, radar, and natural gamma radiation (NGR). To establish which CID sensor technologies need to be developed for a given seam, coal and adjacent rock samples (i.e., immediate roof and floor) are being collected from selected major coal seams in the U.S. and are being analyzed in terms of NGR and other geophysical measurements. Results of the NGR measurements indicate that, in general, all shale and shale-like materials (e.g., drawslate, slate, and fireclay) have higher NGR readings than the coal seam. Consequently the NGR method appears to be a potentially useful CID tool, provided that the immediate roof and floor are both composed of a high percentage of shale-type material.

Jan 1, 1990

By C. James, J. Siefke, D. Shumway

The Mojave Desert is a particularly fragile ecosystem that faces several significant impacts. These include rapid housing development, overdrafted water supplies, and loss of wildlife habitat as a result of mining, industrial activity and urban sprawl. Over the past three years, a diverse group of educators, natural resource managers and business leaders has been assembled under the auspices of a local college to provide unique natural resource education opportunities for the region. By leveraging the collective experience of these present generation natural resource professionals, the Mojave Sustainability Project hopes to provide the next generation of professionals with that knowledge and those technical skills upon which tomorrow’s community can rely. This paper is a case study of how partnerships between academia, government, industry and the community can serve to address the regional social, environmental, and economic needs of today, while investing in the development of those professionals who will balance these needs tomorrow.

Jan 1, 2005

By Michael Feroz

Severe drought in the Colorado River Basin over the past 10 years has caused water levels to drop in Lake Mead by more than 113 feet. The current lake level is at elevation 1,112 feet mean sea level (msl). Lake Mead is the primary source of water supply for greater Las Vegas. Water for Las Vegas from Lake Mead is accessed through two existing submerged intake shaft and tunnel systems. If the water levels continue to drop in the lake, the Intake No. 1 will become inoperable below water level elevation of 1,050 feet msl. To sustain the current levels of water delivery to all member agen-cies in the southern Nevada region, the Southern Nevada Water Authority (SNWA) has decided to construct a third intake at a deeper depth in the lake to ensure better quality water and enhanced reliability.

By Z. Konstantinovic, M. Ahrens

Due to the large installed electrical power and the large number of electric drives in minerals and mining plants power factor compensation and harmonic filtering has always been an important issue. For the design of harmonic filter and power factor compensation installations several approaches can be taken. The paper describes different concepts and their advantages and analyzes special requirements and design considerations for minerals and mining plants. It also highlights areas where problems can occur and which points need to be addressed carefully. Optimized designs and solutions are discussed in case studies and the resulting energy savings and benefits for the plant operation are shown.

Jan 1, 2007