Search Documents

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

When overburden depth exceeds economical recovery in openpit coal mines, the use of highwall mining systems has increasingly come into play. However, stability in the highwalls is always a major safety concern during such mining. The U.S. Mine Safety and Health Administration requires that highwall mining operators follow ground control plans that specify the pillar sizes necessary to prevent collapse that would threaten highwall stability.

Jan 1, 2006

By Richard J. Stoehr

In his time on earth, man has mined about 93.3 kt (3 billion oz) of gold. About one-half of this has been produced in the past 35 years. Roughly one-third of this gold is held as reserve in Central Banks. One-third held is in personal reserves. And one-third is held as jewelry or other fabricated products. The world per capita availability of mined gold is increasing. There are many forces shaping gold's future. Gold currently has a favorable exchange ratio. This is encouraging many new gold mining developments. Production is increasing and new recovery techniques are surfacing. The use of gold in the financial markets is increasing in some unique ways. And gold is again fulfilling its role as a universal money, making its future predictable. Gold Today Man is currently mining gold at the rate of about 1.4 kt/a (44 million oz per year). This adds about 1.5% of newly mined gold to the total supply each year. This production plays a small role in the pricing mechanisms since much of the 93.3 kt (3 billion oz) mined is available to the market in some form. The 31.1 kt (1 billion oz) held by central and international banking

Jan 11, 1984

By David G. Adam

Introduction Syncrude Canada Ltd. is the operating company for a consortium of industry and government participants that produce synthetic crude oil from their leases in the Athabasca Oil Sands. Production from the $2.3 billion (1978) integrated mining, extraction, and bitumen upgrading and utility complex started in September 1978. Production is currently about 6.4 Mm3/a (40 million bbl per year) of high quality synthetic crude oil. This is done by upgrading the extracted bitumen from the oil sands mined. Plans are to increase the production to 8 Mm3/a (50 million bbl pier year) by 1989. At that time, the mining operation will be required to deliver 100 Mt/a (110 million stpy) of oil sand (ore) to the extraction plants, and handle quantities of waste ranging from 50 to 75 Mt/a (55 to 83 million stpy). The Syncrude plant is located at Mildred Lake, 40 km (25 miles) north of Fort McMurray and 480 km (300 miles) north of Edmonton, Alberta. Climate, particularly winter, is therefore a major factor affecting the design and operation of all the Syncrude production facilities. Bitumen production, consisting of overburden removal, oil/sand mining, bitumen extraction, and tailings disposal, account for about half the total SCO production costs. Considerable research and development, therefore, continues to be applied to improve both material handling and bitumen recovery methods. Potential applications for feeder breakers were identified in the material handling aspects of both overburden and oil sand mining to reduce cost and to attain planned production increments. Overburden removal Overburden materials on the leases comprise thin Pleistocene sands, gravel and fill, and sands, silts and clays of the thicker Clearwater Formation with the silt to clay components predominating. The latter contains multiple leases of hard siltstone with unconfined compressive strengths up to 148 MPa and thicknesses up 0.1 to 0.9 m (1 to 3ft). Characteristics of the overburden as well as the climatic environment and scale of operation present unique problems for the efficient removal of the material. In a bucketwheel/conveyor system, the weak silty clay formations require relatively flat working slopes for safe operation, while the siltstone lenses and frozen overburden require blasting or selective removal by other equipment. These factors, combined with the normal bucketwheel/conveyor design parameters, lead to high capital investment and relatively inefficient use of that capital. Hydraulic mining alternatives, including dredging, are constrained by severe clay settling problems in the waste disposal

Jan 6, 1986

By M. J. Hannan

Considerable interest has arisen in developing analytical methods suitable for measuring resource commodity substitution patterns. some of this work has applied the Translog method to estimate actual elasticities of substitution. Recent examples incl.uae Privolos and Dunietz (1987), Kopp and Smith (1983), and Moroney and Trapani (1983). Another method, one which has received attention earlier in the work of Fisher and Pry (1970), is that of the logistic or diffusion function. We believe that the latter method has properties suitable for analyzing current problems of material substitution. The present study thus evaluates this method in its original logistic form as well as an extended version incorporating additional explanatory influences. The analysis is applied to copper/aluminum substitution and iron ore beneficiation. Substitution for copper by aluminum is examined in the building wire and cable, and magnet wire end-use markets. For iron ore, the substitution of pellets for sinter is considered for the U. S. market.

Jan 1, 1990

By S. Mishra, C. Shon, D. Saylak

Only 40% of fly ash generated by the power plants in US are recycled and used for commercial applications. Of these, the high lime, Class C ash had been preferred. Systematic laboratory and field-scale studies have shown that, by including calcium chloride in the mix design of stabilization of roadbed materials, both Class C and Class F fly ashes can be effectively utilized. Test data reveal that the addition of calcium chloride to the system accelerates its curing rate, thereby increasing early strength and long term durability of the constructed road. For road construction, a preblended Class F fly ash–CaCl2 system tends to be more forgiving than the Class C fly ash–CaCl2 system. The former system produces more durable roads. The role of calcium chloride as an accelerator in these systems is discussed along with a mathematical model developed for fly ash- CaCl2 stabilized roadbed systems.

Jan 1, 2007

By M. S. Riyazulla

A model of a new laboratory magnetic separator has been conceived to cater the needs of process engineers and mineralogists world over engaged in mineral characterization and beneficiation. It would be essentially a laboratory instrument for the separation and concentration of various ferro and non-magnetic minerals. Based on the basic concept of Frantz Isodynamic Magnetic Separator, the new separator conceived would not only speed up the work of a process mineralogist and save the energy, but it would effectively separate and sequentially produce about fourteen fractions at a time. In the present paper, the probable operational procedures and the design have been discussed in detail for the various mining companies to assess its economic feasibility. If it could be fabricated, it would have a worldwide market The concept has been patented in author?s name in India.

Jan 1, 2009

By M. J. Raffaldi, K. W. Harris, K. A. Perry

"Highwall miners have been widely used to extract additional coal reserves from existing surface operations, particularly on contour operations in the Appalachian coalfields. Using a continuous miner cutting head, coal may be extracted from significant depths (such as 150 m), leaving behind an array of web and barrier pillars with the purpose of maintaining highwall stability. This method inherently involves elevated risks to both equipment and personnel due to proximity to and increased exposure time near highwalls. As a result, modern operations should actively design web and barrier pillars to maximize extraction while providing adequate stability. The ARMPS-HWM software, an empirical-based program created for the design of web and barrier pillars at highwall mining operations, is one such approach. The calculated stability factor is compared with empirically established guidelines produced from examining case histories.The ARMPS-HWM program is a handy tool for initial design, but understanding the site’s structurally significant geologic features and geomechanical behavior is important and may potentially increase extraction. We created a two-dimensional numerical model using FLAC3D and calibrated it to ensure pillar strength, closely following the Mark- Bieniawski formula for a typical range of pillar geometries and overburden properties. The development of pillar stresses along a highwall panel was then numerically investigated as mining progressed, and the stress distribution between barrier pillars was found to be asymmetric, which can result in an over-design of the closeout web pillars if tributary area loading is assumed. Finally, the importance of adequate barrier pillar stability is highlighted."

Jan 1, 2014

By S. A. Shuey, P. Taylor

The recycling of electronic waste (e-waste) tends to be a rather complex undertaking when considering the intimate bonding of materials in the average printed circuit board. The development of a recycling process is further complicated when considering the wide variety of products being generated under the heading of “electronics” as well as the constant change in materials of construction coupled with the speed at which electronics are changing. CSM researchers have undertaken a survey of the current state of pyrometallurgical processing of e-waste. This base-line will set the stage for the development of new recycling technology at CSM.

Jan 1, 2004

By Anthony Leddin, Gillian Dooley

This paper is concerned with mineral policy in Ireland and how it might be improved to encourage more exploration and investment in mining in the country. The approach is to first outline the main desirable characteristics of a comprehensive national mineral policy document. This aspirational document is then used to assess the current regulatory, legislative and fiscal frameworks for mining in Ireland. The analysis also contains a brief account of the history, structure and characteristics of the mining industry in Ireland. The main focus of the paper is to identify those aspects of the existing framework that erode Ireland’s attractiveness to mineral investment and to suggest policy improvements.

Jan 1, 2005

By K. Zabrusky

Estimation of high grade epithermal vein deposits can present challenges in correctly representing the continuity of grade within an undulating structure. One solution to this problem is to use dynamic anisotropy to follow local variations in the strike and dip of veins. Dynamic anisotropy (D.A.) allows the search parameters to change block by block throughout the model to account for the local variations. Presented here is a study of a vein that changes orientation down-dip. A traditional resource estimate using one search ellipse orientation was performed. The resulting estimated grades did not accurately reflect those of the sample data. Using a search ellipse with an average value for the two distinct dips caused the grade estimation to be less representative than desired. Rather than performing domain-based analysis with different search ellipses, the issue was corrected by using Datamine Studio 3?s D.A. function. The 3D vein trend was used to estimate the dip and dip direction of the vein in each block. The resulting D.A.-estimated model follows the two dip trends of the vein. This software makes a previously tedious task faster, and allows for more accurate estimations.

Feb 27, 2013

By Will Foreman, Douglas D. McLearie, Edwin K. H. Tong, William H. Hansmire

Hong Kong’s Strategic Sewage Disposal Scheme (SSDS) Stage I involves the provision of a system of deep tunnels for transporting to a central treatment works wastewater collected from a number of catchments around Victoria Harbour. For the SSDS Stage I works, about 24 km of tunnels have been excavated in hard rock at depths ranging from about 80 to 150 m below Victoria Harbour and the surrounding heavily developed areas of Kowloon and Hong Kong. Five tunnel boring machines(TBMs) with diameters ranging from 3.2 m to 4.3 m were used to excavate the tunnels. Tunnel excavation has been completed and tunnel linings are in progress. Major tunnelling issues such as ground stabilisation and water control encountered in the project are summarised. An overview of one of the possible future tunnel systems that might be adopted in subsequent stages of SSDS is also presented.

Jan 1, 2001

By E. M. Spokes

A.B. Rushton The work and resulting publications of the Committee on Underground Coal Mine Safety and The President's Commission on Coal were appropriate at the time of publication. The statistics cited in the publications appeared to be valid, and the actions proposed by the committee had merit. Although the actions proposed to achieve further improvements in safety may have been worthy of repeating, to associate statistics (Table 1) that are seven to eight years old with company names is bad. Statistics are readily available from the Mine Safety and Health Administration (MSHA) and are usually within three months of being up to date. A review of the most recent Coal Controlling Co. Report will reveal significant changes in the rankings. The more recent statistics should have been cited, or at least compared with those used in the article. Westmoreland Coal Co. is listed as having a 21.1 disabling injury rate for the period (1/78-12/80). The disabling injury rate for the Company for the year ending 1985 was 7.4 for the underground mines and 6.25 for the total facilities. Through March 1986, the disabling rate for the underground mines was 2.86. The management and employees of Westmoreland Coal Co. are committed to safety. The improvements achieved over the past five years attest to that commitment. We are justifiably proud of the achievement and dislike being misrepresented as in the April 1986 article. Reply by E.M. Spokes I regret that the lapse of time since the original work gives a picture of safety practice that is no longer true today. That Westmoreland has reduced its disabling injury rate by 65% to 7.4 in 1985 is most commendable, and I congratulate you for this accomplishment. It is typical of the progress sought by the National Academy of Science and National Research Council when they funded the original study and published "Toward Safer Underground Coal Mines" in 1982. If a significant number of companies do as well as Westmoreland, the report will have served its purpose. Since the paper was primarily a condensation of the original report, it would not have been appropriate to seek access to later statistics. The purpose in seeking its publication at the time of presentation was to reach those who might have missed the original report. The fact that publication was delayed has not voided that purpose and may have reminded some who were aware of the original that its recommendations still apply to improvement of underground coal mine safety.

Jan 6, 1986

The La Colosa, Colombia porphyry gold deposit is currently in the pre-feasibility stage. This large deposit has many types of gold mineralization: native gold, electrum, and tellurides. These variations in the gold mineralization lead to variability in the gold recovery. The final process flowsheet may include gravity concentration with cyanide leaching. Metallurgical testwork is utilized to identify the zones of ore that may be problematic to recover. To help select the samples that represent the fluctuating variability zones, geometallurgical models are constructed using mineralogy and geology data. These zones are then wireframed and compared to the geological and structural models for spatial correlation. Samples for the variability testwork will be selected from these different zones to identify and analyse the effect the different gold mineralization types have on the recovery. By using geometallurgy to aid in the sample selection for metallurgical testwork, the variability in the ore body can be understood and constrained to aid in process optimization.

Feb 27, 2013

By D. Brunner, G. R. Baiden, H. J. Yazici

System simulation is an increasingly popular technique for analyzing and improving existing as well as newly designed underground mining operations. An engineering firm that specializes in simulation helped a major metals producer build a long-range planning model of an existing underground mine. Subsequently the team adapted this model to assess technology alternatives in the design of a new mine. The two models differ in the level of detail used for modeling the development process. This paper discusses the differences in approach between the models along with the experiences gained and challenges faced during the construction and use of the models.

Jan 1, 1999

By H. Sevim

In this paper, the research effort in simulating the operation of underground coarse-coal hydrotransport systems (UCCHS) is summarized. The equipment of the system to be simulated is already optimally selected by using an analytical optimization model. The purpose of the simulation model is to test the performance of the system and to obtain the distribution of the operating parameters such as water and power consumption, amount of slurry delivered to the preparation plant, etc. Knowledge of the distribution of these parameters is essential for the efficiency of the design and the operation of the system.

Jan 1, 1985

By Ken Mathers, Tom Conley, Jim Rozek

The Melbourne City Link Tunnels have been constructed through a BOOT process, the largest undertaking in Australia to date. Tolling commenced on the 1.6 kilometer Domain tunnel in April 2000, and the 3.4 kilometer Burnley tunnel December 2000. The project was delivered by design construct contracting and under ISO 9000. There were a number of major challenges in completing the tunnels, including much higher than expected groundwater infiltration, hydrostatic pressures greater than 6 bar, and unique design and construction applications required to prepare the tunnels for service. This paper covers the end play and final delivery of the tunnels.

Jan 1, 2001

By T. S. Golosinski

Introduction Typical dragline rigging includes several sets of ropes: hoist ropes, drag ropes, dump ropes and boom suspension ropes. The drag and hoist ropes contribute most to the dragline operating cost. Both work in very difficult conditions and wear out rapidly. As a result, frequent rope changes are required resulting in substantial cost and productive time loss. Although performance of rigging has a profound impact on dragline efficiency, there are no common, industry accepted standards related to its selection, operation and maintenance. Little information on the subject is available and the practice differs widely throughout the industry. The performance of drag and hoist ropes depends on: •rope construction that should closely match requirements of the specific application, rope operating conditions and its maintenance and • correct definition and application of the rope discard criteria so that full advantage of the rope can be taken without endangering safety of its operation. This paper reviews the present practice related to all these factors. Its findings are based on the wide survey of the present industrial practice. Field survey In total, 33 North American dragline applications were surveyed of which 17 were Bucyrus-Erie machines, 10 were Marion and six were Page (now P&H). Most of the draglines were stripping overburden in coal mines, but the survey also included some unique applications such as phosphate mining in Florida and oil sand mining in Alberta. Hoist drive power of the surveyed machines varied from 300 to 7775 kW (400 to 10,400 hp). Drag drives varied from 300 to 5815 kW (400 to 7800 hp). Boom lengths varied from 37 to 110 m (120 to 360 ft). Bucket sizes varied from 5 to 96 m3 (6 to 115 cu yd). The hoist and drag ropes installed on the surveyed machines were supplied by 10 rope manufacturers and differed widely in type and construction. Most common rope strand constructions included standard strands, Seale, Warrington, Warrington-Seale and Filler-Seale. Results of the survey [ ] Working conditions Working conditions of hoist and drag ropes are quite different. The first cope primarily with bending on rope drums, point sheaves and deflection sheaves, and with tension force imposed by the bucket and its load. The drag ropes are exposed to severe abrasion at the pit crest, and to severe bending and crushing at fairleads, all while coping with tension forces imposed by resistance of the bucket to dragging. Bending of drag ropes at house rollers and at rope drums is of minor importance for their performance. Differences in working conditions result in different wear patterns, which make it feasible to install discarded hoist ropes to further serve as drag ropes. The hoist ropes wear primarily due to fatigue breaks of wires, while the drag ropes are subject to severe abrasion of outside wires, rope deformation and internal wire-strand breaking. The last is often indicated by the reduction of rope diameter. The summary of working conditions for the surveyed draglines is shown in Table 1. For simplicity, Table 1 does not include the data on rope bending at the fairleads, nor at the deflection rollers and house rollers. Similarly, Table 1 does not include the data on drag rope bending (other than that on the rope drum), as its influence on rope life is insignificant in view of severe abrasion and internal wear taking place elsewhere. The following abbreviations are used in Table 1: [D - diameter of rope drum. DP - diameter of boom point sheaves. d - rope diameter x - mean value of the measured parameter. s - standard deviation of x B/d - average bending ratio of ropes B/d =(D+ DP)/2d n - operational safety factor of the rope (rope stength) x (number of ropes) n(bucket load + bucket weight)] In terms of D/d ratio, the working conditions of hoist and drag ropes are similar to that in other related industrial applications. However, the safety factors of the dragline ropes are lower, which requires them to carry relatively large tension forces. The last explains the fact that the life of dragline ropes is low when compared to other industrial rope

Jan 1, 1995

By K. F. Bailey

Naturally occurring asbestos in aggregate and other mineral deposits, and the release of asbestos fibers into the ambient environment, is a public health concern. Determining the presence of asbestos in an ore body also presents a considerable sampling and analytical challenge. Improper and inaccurate identification of asbestos can result in unwarranted public and worker panic leading to significant costs to mine operators both in terms of dollars and company image. Some companies have been forced out of business simply because they had the non-asbestiform, prismatic variety of one of the six asbestos minerals. In the late 70’s, asbestos was found as a contaminate in a trap rock quarry in Rockville, Maryland. This discovery led to a massive overreaction by federal, state and local governments. In 1986, the Occupational Safety and Health Administration (OSHA) promulgated a final rule that regulated the common non-asbestiform mineral habits of actinolite, tremolite, and anthophyllite as if they were asbestos. The rule was reversed after a six-year struggle. Recently, the Libby, Montana, W. R. Grace vermiculite - asbestos, as well as the California chrysotile in serpentinite, and the New Jersey Southdown quarry – asbestos events have rekindled the entire issue of naturally occurring asbestos. It is time to get this concern addressed with sound science so that real asbestos is properly identified and controlled.

Jan 1, 2002

By R. B. Berg

Montana sapphires were first discovered in alluvial deposits in the Helena area in 1865 and subsequently were discovered in other alluvial deposits in southwestern Montana and also in a lamprophyre dike at Yogo in central Montana. From about 1900 until the late 1930?s, when synthetic sapphire began to come into widespread industrial use, Montana sapphire mines produced large quantities mainly for watch bearings with lesser production for the gemstone market. The Yogo deposit is now mined for the gemstone market and two of the alluvial deposits are mined to produce sapphires for the fee-sieving of sapphire-bearing gravel and for the direct sale of gemstones. The generally pale-colored sapphires from the alluvial deposits in southwestern Montana are heated to enhance their colors whereas the generally blue sapphires from the Yogo deposit require no treatment. Markets for sapphires from both the alluvial deposits and the Yogo deposit are strong. In spite of reported historic production in excess of 70 tonnes, mineable resources appear to remain at most major deposits. Also abundant untested lamprophyre dikes in central Montana may host sapphires similar to those at the Yogo deposit.

Jan 1, 2009