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By John E. Dowis

Ore distribution being what it is, many of today's mining companies are forced to develop foreign reserves to satisfy the demands of their customers. This necessity complicates the economic picture for a company, because management must look well be- yond grade and tonnage to determine the feasibility of developing a foreign orebody. Above all, the taxes on such a development must be assessed. The difference that taxes can make in mining profits will be illustrated here for three countries-Canada, Mexico and the United States. For purposes of comparison, identical orebodies will be assumed to occur in all three countries. Only the taxes on these properties will vary. Grade, tonnage, gross income, production costs and production rates will all be the same. The discussion will be limited to federal taxes, because state and provincial taxes are usually negligible by comparison. Assumptions relative to the orebody and the nature of the company undertaking the operation are as follows: (1) Copper is the only value to be recovered. (2) Sixty million tons of ore have been delineated. (3) Underground mining is required, and the production rate will be 3 million tpy. (4) The life of the property is 20 yr. (5) Operations in Mexico or Canada will be handled by a subsidiary of a U.S. parent company. (6) The subsidiary will offer stock.

Jan 1, 1970

By Granville S. Borden

MANY complaints have been filed by mine prospectors, explorers and producers about inequities in mining taxation. They have insisted upon improvement, and in the past 35 years there has been some progress. Many of the best taxation provisions made to date are those contained in the Revenue Act of 1951. Mining economics presents special problems, a fact even recognized by many textbooks. Certain provisions have been made to take care of mining taxation rights, but these have been made by Congressional act and do not represent basic, constitutional, guarantees. Despite special provision, in the form of depletion allowances, there remain injustices. The industry faces the problem of gaining adequate income tax allowances for exploration and development expenditures, operating losses, and bonus and subsidy payments. Problems in mine taxation arose soon after the adoption of the 16th Amendment. This amendment gave Congress the power to impose income taxes. Supreme Court decisions against a number of mining companies held that Congress, under its power to tax income, could tax net operating revenue before depletion allowance was deducted. The court also ruled that the right to deduct depletion is a matter of Congressional permission. There is no statute provision permitting mining stockholders to recover their investment out of dividends while the mine is being operated. The Supreme Court did not recognize that part of mining proceeds are actually amortization of the cost of mineral rights. Both these omissions stem from failure to recognize that by its very nature mining consumes its mineral rights and therefore that a part of gross proceeds are not income but recovery of capital. Suppose a Congress unfriendly to mining interests repeals the provisions that allow deductions for depletion. Under such a situation assume that a corporation buys a mineral deposit for $300,000. They mine the deposit and earn an operating profit of $500,000. At the current rates they would pay a Federal Income tax of in excess of $250,000. This venture results in a loss of $50,000 as shown in the table below. For the example given the absence of depletion provisions in income tax law would turn ore into waste rock, because the word "ore" connotes commercially mineable rock. [ ] In retrospect the conclusion is clear: If the Supreme Court had recognized that a part of mining proceeds represent in reality sales proceeds of mineral rights, then profits derived from such sales would have been taxed at the favorable long-term capital rates, instead of being taxed at the high normal, surtax and excess profits rates. It is a question whether percentage depletion allowances offset this tax situation. History The history of depletion allowances has been one of general improvement. The original act did not include depletion, but an allowance at the rate of 5 pct of gross proceeds was provided in 1913. The Acts of 1916 and 1917 allowed depletion upon cost of property, and in 1918 the law was further changed to permit depletion upon cost, or market value as of date of discovery. In 1932 metal, coal and sulphur properties were permitted to elect depletion in percentages of gross income, limited to 50 pct of net income, in lieu of cost depletion. Shortly thereafter the rule was changed and percentage depletion is now allowable in any case where it is higher than cost depletion. Since 1942 percentage depletion allowances have been extended to cover many nonmetals, and in 1951 the rate for coal mines was increased from 5 to 10 pct of gross income. It is interesting to note that these allowances have been retained, and even

Jan 1, 1952

By C. David Mann

Metal prices continued to improve in 1964, resulting in the opening of new mines and re- activation of old ones. Larger and deeper shafts are being bored. At the AEC's Nevada Test Site, a 72-in. diam shaft is being bored to 3200 ft. In New Mexico a 1650-ft shaft was bored with a 48-in. bit, then reamed to 124 in. to 935 ft, and 102 in. to 1650 ft. Deviation was only 26 in. In California a shaft sinking machine has been developed which combines drilling and mucking equipment into one mobile, integral unit.

Jan 2, 1965

No review of underground mining should begin with anything but the new world safety record set at the Grace underground iron mine of Bethlehem Steel at Morgantown, Pa., on Friday, November 12. There had not been a disabling injury (an injury which keeps an employee away from his next scheduled shift) for 550 working days. In all, 2,660,080 man-hours had been worked by nearly 950 employees without a disabling injury. The record was wrested from Johns-Manville's Jeffrey mine at Asbestos, Que. At 3 p.m. Friday, December 3, miner Stanton E. Friend was completely buried under several feet of coarse rock, fortunately sustaining only cuts and multiple abrasions. But with his fall, the accident- free period came to an end at 2,778,600 man-hrs worked without a disabling injury-the new record!

Jan 2, 1966

By P. J. G. duToit

The continually growing shortage of skilled underground miners, the escalating costs of labor, supplies and equipment, and the indisputable example of "what can be done" by our friends in the space-travel field, seem to be catalysts that are accelerating improvements in underground mining technology. The search for an economic, automated continuous excavation method that would produce rock at the mining face in sizes suitable for automated transportation directly into the rod-, ball-, or autogenous grinding mills is continuing. New mining methods and techniques were devised and many improvements on old methods and techniques came forth at an increasing pace that reflected a widely spreading policy among mining men to shun the shackles of conservatism and to forge ahead and venture into newer ideas.

Jan 2, 1967

By J. B. Mudd

Introduction It is difficult to think of any activity on which mankind has been more dependent than mining, and certainly there is much evidence in almost every part of the world of old workings that clearly demonstrate that man from earliest times has dug and toiled to take from the earth precious stones, metals and materials that from time to time have been essential or of value to him. In step with social development and industrial and technological advances the tempo of mining activity, regulated only by the laws of supply and demand, has quickened and in this century has accelerated rapidly in keeping with its dramatic development. Indeed, the rate of change of events has been such that if it were to continue to accelerate as fast as it has over the past decade there is reason to wonder how the insatiable demands for metals and minerals are to be met in the years that lie ahead. Shallow mines containing high-grade ore deposits either have been or are being rapidly mined out and their place can only be taken in general by ore lying at greater depth, or by ore of low grade, situated for the most part in remote and in underdeveloped areas. The cost of exploration and development is rising at an alarming rate, with the result that the expenditure now required to bring a mine to production far exceeds anything previously contemplated. It is estimated that the total capital required to maintain existing operations and develop new ones during the next 5 years will be of the order of $50,000 million and of this, new capital to bring new mines to production will be of the order of $3,000 million. Today no single mining finance company can, from its own resources, find all the money for a major mining development, and as a consequence there has been a strong trend toward joint ventures and to the formation of multinational consortiums. International lending institutions already play an important part in financing many new mining projects and their participation provides the financial umbrella under which other lenders can invest with greater security. There is little doubt that to finance the costly ventures in the future, governments and international lending agencies, banks and finance

Jan 1, 1971

The Mascot-Jefferson City zinc mining district in eastern Tennessee has been a major zinc producer for over 60 years. The district lies within the Tennessee division of the Appalachian Valley and is underlain by folded and faulted Paleozoic rocks. The local formations are composed of limestones and dolomites with occasional shales, and sand- stones, and thin and scattered chert nodules. The regional structure of the district is unique in that it is complicated by irregular, distorted, and broken anticlines, synclines, domes, and major and minor post-ore folding and faulting.

Jan 5, 1976

By Robert C. Paddock

INTRODUCTION A way of producing 3,000 tpd from the El Mochito Mine was needed. Of this production, 2,000 tpd must come from the San Juan orebody. The original sub-level stoping method did not give satisfactory results due to ground instability, and the highly irregular ore/waste contacts encountered . The experience gained from the initial system helped guide research into the ground instability problem. Results from this work, combined with knowledge gained about the orebcdy configuration, defined constraints that were previously not fully appreciated. These constraints, and others, combined with objectives, were considered together to develop a new mining method. No single technique was found to be suitable, so a hybrid mining system was developed. A combination of ramping, cut and fill, and vertical crater retreat, with an option to use top heading and benching was developed. To complement the mining system, the type of equipment needed was decided upoun. Also, to support the mining system at this expanded rate of product ion, major modifications of existing infrastructure were required. THE EL MOCHITO MINE The El Mochito Mine, of Rosario Resources Corporation, has been in continuous product ion since 198. The mine began operations in April of that yeas at a rate of 100 tpd. The reserves in 198 were 100,000 tons of silver ore assayed at 1,250 grams per tonne. As of the end of 1979, the El Mochito orebodies have produced over 5.6 million tonnes of ore averaging 516 grams per tonne silver, 6.8 lead, and 7.8% zinc. Present ore reserves are about 7.9 million tonnes, averaging 138 grams per tonne silver, 4.6% lead, and 8.7% zinc, with minor quantities of copper, cadmium and gold. An expansion plan to increase mill production two fold to 2,500 tonnes per day is underway. This expansion will require the mine to produce 3,000 tpd. The mine consists of numerous orebodies, all of which have been mined to a certain extent. Of all the orebodies, the San Juan contains 8% of known reserves. This amounts to about 6.7 million tonnes. The significance of the San Juan orebody to the future life of the El Mochito Mine is obvious. If the required mine production of 3,000 tpd is to be sustained, the San Juan must be the source of the majority of that production. Due to the mineability and overall logistics concerned with the other orebodies, the San Juan must be able to reach and maintain a production rate of 2,000 tpd by 1982. GEOLOGY OF THE SAN JUAN OREBODY The El Mochito Mine is a classic example of a chimney replacement deposit in limestone. Similar deposits axe found in Mexico, at the Naica, Providencia, and Santa Eulia Mines. The El Mochito Mine is located at the south- western end of the Sula Valley on the western edge of the Honduras Depression in the Central Cordillera and Central Highlands of Honduras in a setting of Mesozoic sediments. The orebodies occur in a structural basin developed between NNE trending normal faults and apparently hinged on the south end. Topographically, the Mochito Basin lies between the uplifted Santa Barbara mountain in the west and the Palmer Ridge on the east. The San Juan orebody occurs near the intersection of the NE trending San Juan fault and the ENE trending Porvenir fault. The downward continuation of the orebody is controlled by the westward rake of these NW and N dipping structures. The discovery of the San Juan orebody is attributed to analysis of structural evidence of known ore deposits by in-company geologists. The composition of the San Juan orebody is primarily garnet skarn, with local concentrations of hedenbergite and magnetite. The economically important sulfide mineralization consists of (in decreasing abundance), sphalerite , galena, pyrrhotite , and chalcopyrite. There is some indication that a Cu-Ag mineral such as tetrahedrite may also be present. The skarns were formed by replacement of the original limestone by hydrothermal water migrating upward roughly along the intersection between the Porvenir fault system and the San Juan fault system. Textural evidence suggests that the orebody is a composite of several pulses of hydrothermal activity which would explain, in pat, the great irregularity of the contacts and the large horizontal variation in mineralogy. A general pattern of skarn types can be seen in the orebody, partially accounting for the observed lateral variation in grades. This zonation is very generalized, and one or more zones may be missing in any given locality. The orebody is almost invaxiably surrounded by a 2 cm to 25 cm zone of bustamite skaxn with low values. The border skarn is usually

Jan 1, 1981

By David Thomas

The preliminary meeting to organize the American Institute of Mining Engineers was held last evening. The attendance was unexpectedly large, and the proceedings were harmonious. According to present appearances, the Institute is destined to have a vigorous and influential career. A noteworthy feature is the interest manifested by the owners and operators of mines and by mining foremen, who are not strictly engineers. Provision is made in the rules for such persons, and all others who desire to be connected with the organization, by the establishment of a class of associates, having all the privileges of members, with a very few restrictions. It is ordained that the President, four of the six Vice-Presidents, and six out of the nine managers, shall be professional mining engineers, this term including metallurgical engineers also.

Jan 1, 1971

By B. M. Andreas

PRIOR to 1934 all haulage of ore and stripping on the Mesabi Range was by rail. Early rail systems had small narrow-gage locomotives with correspondingly small dump cars. These trains were replaced with larger standard gage rail systems powered by steam locomotives ranging up to 224 tons in weight, which have in turn been replaced by diesel electric locomotives. Along with this development cars have been increased to 30-cu yd capacity. Improvement of cars includes alloy steel construction for lower over-all weight and use of roller bearings to decrease rolling resistance. Despite all of these developments, the total material hauled by rail on the Mesabi Range has decreased every year. Yet, this is no reason to believe that rail haulage is becoming obsolete. Its adaptation to small mine operation has become impractical, but in large mines where normal railroad grades are possible or where hauls to plants or dumps are long, rail haulage is still one of the most economical methods of transporting large quantities of material.

Jan 1, 1954

Mounting pressures to increase efficiency and yield, conserve energy, or minimize pollution have all taken their toll on the minerals industry. As management and technical personnel take a harder look at their operations for ways to shave cents off operating costs or to squeeze a bit more productivity out of existing equipment, instrumentation often comes up as the most effective answer. When Amax Lead installed an automatic grind control system in its Buick mill, ore throughput increased by 3 to 5%. Mill operators calculate that the initial investment is returned to them several times annually.

Jan 2, 1978

By ARCHIBALD DOUGLAS

BY this time almost everyone knows, in a general way, the corporate income distribution policies of the 1936 Revenue Act, and many of the practical problems arising there under. This article is not intended to be a technical discussion of that act by title, subtitle, section, or supplement, nor an analysis of inter- dependent sections of the various acts over many years woven on the fiscal loom f our Congressional machine. Such a discussion would require the spinning of a web of words too long for patience. Yet ,a general statement of the underlying plan of the 1936 Act, so far as it affects dividend policies, is perhaps useful.

Jan 1, 1937

By E. P. Pfleide, L. W. Gibbs. J. R. Gross

A method using computer techniques is described for the comparative evaluation of truck performance over any given haul road using readily obtainable manufacturers' data. An additional computer program is utilized to calculate individual cycle times for each truck and shovel combination, fleet requirements for any desired production rate, and to estimate comparative costs. The introduction of a large number of variables into the program permits management to determine the critical system factors having the greatest bearing on costs. Thus, the method described can be used not only for analysis of needs for a new surface mine but for cost improvement in existing mines where changes in truck and shovel operations are contemplated. The systems analysis approach to the solution of problems in the mining industry is gaining in industry acceptance. This is a logical development in view of the fact that a mine constitutes one of the most dynamic systems of production. In contrast with a manufacturing plant, situated in a location selected through choice and utilizing a regulated source of quality controlled raw materials, the miner must go where the ore is and he is faced with ever changing physical conditions. He is subjected to the vagaries of nature, and he can never mine the same ore twice. What is systems engineering? There seems to be no concise and universally accepted definition of the term and its meaning is still fairly local. It deals largely with trade-offs of subsystem characteristics to achieve some desired result in an overall system. This concept of suboptimization can be explained by an example. If the objective of a mining company is to produce a certain quality ore at minimum cost, the optimum operation is not achieved by minimizing all costs, since all phases of mining are interrelated. Reduction of blasting costs might well increase loading, hauling, and crushing costs out of proportion to the resulting saving in explosives. Hence tradeoffs are necessary. It is evident then that an optimum system is achieved through a blending of suboptimal components which taken together yield the desired result. OBJECTIVE For our mathematical model we will assume the existence of a hypothetical new organization called Taconite Mining Co. (TMC). TMC has made an analysis of their orebody, their proposed operation, and

Jan 1, 1968

US 4,195,426-Manganese nodules are recovered from relatively great depths on the ocean floor using a self- propelled remote-controlled vehicle having a V-shaped tubular structure with a system of crawlers at its apexes. Underneath each side of the V-shaped structure is a scraping system for gathering nodules and directing them into a tubular conveying system for elevation to the surface ship. A given area of sea bed is fully mined in a single pass of the vehicle. V. Banzoli, V. Di Tella, and P Vielmo, assigned to Tecnomare, SPA. Apr. 1, 1980. 5 pp. 137-60) Filed. 3-31-78 (892,197). Priority: Italy, 4-1-77 (84119A/77).

Jan 1, 1982

By L. B. Underwood, C. J. Distefano

NORAD, when completed, will be housed in large chambers excavated out of the granite beneath the Cheyenne Mountain near Colorado Springs. A room and pillar layout for the chamber excavation was selected and executed. Many complex problems arose in designing a rock bolt system; this paper includes discussions on: rock strengthening following excavation, excavation and ground support problems, orienting rock bolts with respect to jointing systems, conducting pull tests, four-way chamber intersection problems, the need for grouting rock bolts, and loss of tension and permanency of anchorage in a rock bolt system. In the event of a sudden nuclear attack upon the United States, it is imperative that vital command and control centers have a high probability of survival. One such vital facility is the North American Air Defense Command Combat Operations Center at Colorado Springs, Colo. Known briefly as NORAD, this installation when completed will be housed in large chambers excavated out of granite beneath the eastern slope of Cheyenne Mountain (Fig. 1). The NORAD COC, a U.S. Air Force sponsored project, will serve as the primary collection and evaluation center for data concerning unknown aircraft, missiles, or space vehicles, which might bring destruction to North America. The data will be fed into high-speed computers and electronic equipment from outpost sources: radar, ballistic missile early warning stations and picket ships throughout the world. Electronically controlled display boards will make it possible to evaluate the tracking data instantaneously and to take appropriate defensive action.'

Jan 1, 1968

By C. E. Gregor

Current modern trends in mining show that hoisting shafts are being expected to fulfill an important ventilation function. However, where rigid guides and supporting structures are mandatory, ventilating power costs will be high, unless the transverse structures (shaft sets) are streamlined. In the complex configurations of hoisting shaft furniture patterns, either for original design purposes, or for the adjustment of an existing shaft, a useful degree of aerodynamic optimization, by reduction of overall resistance, can only be effectively evaluated by model studies in a special purpose wind tunnel, as described herein. The author has shown that, in one particular case, an annual power cost saving of more than $50,000 was indicated, mainly by the selection of buntons and dividers of improved aerodynamic profile. Mining companies are now realizing the advantages that can accrue through proper attention to the aerodynamic aspects of mine shaft design. With progressive demands of civilization for an ever greater supply of coal and metals, and with greater depths of working, higher rates of extraction, advanced degrees of mechanization, and improved standards of environmental health and work comfort, shaft design is becoming an extremely important aspect of mining operations. In addition, because the cost of sinking, equipping, maintaining, and operating a mine shaft is continually increasing, there is a greater incentive to use a shaft for the maximum duty, consistent with economy. The current natural tendency is therefore to sink multi-purpose shafts, to install as much equipment as is safely and effectively possible to operate; and then, over and above all these functions, to use the shaft to its maximum possible ventilating capacity, as a major, or auxiliary, airway. Clearly, this latter additional function can only be employed at a significant cost, since the most economic operating airways are smooth-lined and devoid of internal rigid furniture. It is true that hoisting functions can be carried out in such shafts if rope guides are used, but only under restricted conditions. Where a manway must be provided, fixed guides and supporting structures are mandatory, and ventilation costs become accentuated. It is generally recognized that the prime element of cost in ventilating a mine can be represented by the power required to drive the fan unit. It is also known that the largest component of total mine resistance is that of the downcast shaft, where this shaft is equipped with rigid guides for hoisting purposes. The pressure loss varies directly as the resistance of the shaft, in accordance with a modification of the Atkinson equation p = RQ2/3600. Furthermore, the air horsepower drawn is given by the equation AHP = (p x 0/33000. Therefore, the power required to drive the fan unit varies as the resistance of the shaft and the cube of the air quantity. Clearly, if Q is a specified minimum, then the only way to minimize the pressure loss (and the power costs) is to reduce the shaft resistance R. (See Table I for a list of symbols.) The resistance to airflow of a shaft equipped with rigid guides and supporting structural sets consists of two components which, for the sake of analytical simplicity, can be regarded as additive. 1) Frictional resistance, represented by the viscous frictional forces within the boundary layer, as air flows along the surfaces of the walls and the periphery of the vertical elements (guides, pipes, cables, ropes, etc.) of the furniture. The friction loss can be readily calculated by the Atkinson equation, after selection of a suitable value for the friction factor K from the McElroy compilation.' KxLxO xQ2 5.2 xA3 Friction loss can be minimized by lining the shaft walls (particularly if of circular or elliptical cross-section) with a smooth continuous lining of monolithic concrete.

Jan 1, 1968

Established as a Division September 27, 1949 LeRoy Scharon, Chairman C. M. Cooley, Secretary 29 West 39th Street New York 18, N Y

Jan 1, 1952

By Fred D. Gustafson

With the postwar emergency for new housing and for new industrial buildings, much research has been done on lightweight aggregates for use in concrete and plaster. The trend toward lighter weight aggregates to relieve the dead load on the higher, steel frame- work buildings started toward the end of the last century. Progressively the requirements be- came more stringent, crushed bank slag, weighing 80 lb per cu ft as com- pared to 100 lb for crushed rock, was supplemented in some sections by foamed slags and expanded shales weighing from 40 to 60 lb per cu ft. In other sections cinders were used weighing from 40 to 50 lb, including sand. Sections favored with more recent vulcanism turned to pumice weighing from 30 to 60 lb, whereas other localities made use of diatomite, from 28 to 40 lb. Exfoliated vermiculite weighing from only 6 to 10 lb per cu ft came into use. As the search for lighter weights in aggregates continued so did the search for other desirable properties such as nailability, ease of cutting or channeling, and good insulation to both sound and heat. This search eventually led to a widespread interest in the expansion of perlite, or similar volcanic glasses, with the result that in 1946, the Office of the Housing Expediter' listed eleven firms reporting the operation of processing plants either on pilot or commercial scale producing aggregates weighing from 2 to 16 lb per cu ft.

Jan 1, 1949

By Sydney H. Ball

I. INTRODUCTION. DURING the past 50 years the attention of mining-men has been turned to Africa, and within the past decade prospecting-expeditions sent into Central Africa have resulted in the opening-up of several mines. Having recently spent two years in the Belgian Congo for the Société Internationale Forestiere et Miniere du Congo, it is our purpose to outline briefly the mining-conditions in that part of Central Africa. Before it became, in 1908, a Belgian colony, this region was known as the Congo Free State. II. LOCATION AND AREA. The Belgian Congo lies in southwestern Central Africa, west of the continental divide, is illustrated in Fig. 1. It has a coastline of but 20 miles on the Atlantic, but widens rapidly eastward to points 5° north and 14° south of the equator. Its area is 908,000 sq. miles, which is almost one-quarter that of the United States and Alaska, or more than one and one-half times that of Alaska. Stated in other terms, its area is nearly one-third that of the United States, exclusive of Alaska and the insular possessions, or more than that of all the United States east of the Mississippi river. III. TOPOGRAPHY AND DRAINAGE. From north to south, Africa is made up of three topographic elements: 1, the Atlas mountains, a highly-accentuated region

Apr 1, 1910

By FRED T. WILLIANS

INTRODUCTION. THE Park City mining-district is distinctively a camp of few properties, 5,000 acres, or one-third of the entire district, being under the management of but three companies. As a rule, the ore-bodies lie deep, with no outcrop, except where erosion has formed the deeper canyons and gulches. Ontario canyon exposed the famous Ontario ledge, and Woodside gulch showed the first ore of the Silver King Coalition mine. The Quincy ore-bodies were first brought to light in upper Empire canyon, and Thaynes canyon was instrumental in aiding the prospector during the early days of the camp. There are 22 shafts which have reached a depth of at least 500 ft., ten a depth of 1,000 ft., five a depth of 1,300 ft., and two a depth of 2,000 ft. The amount of lateral development has been proportionally extensive, including six long tunnels, four of which are in 3 miles, with a fifth now being driven. The Ontario lower drain-tunnel is now more than 4 miles long. The formations are sedimentary, dipping about 30° NW. and N., and traversed by many fissures, dikes, and faults. The principal ore-bodies are found associated either with the contact of the basal Ontario quartzite and the overlying limes, or on a quartzite stratum within the limes, or in the fissures, or along some of the porphyry dikes. The district covers the intersection of the Uintah and Wasatch ranges, which explains the existence of large folds and faults, and fissures of great length, width, and depth. In a general way, the geology of the district consists of a basal quartzite dome, which has been exposed by erosion at the Ontario property. The Ontario fissure lies entirely within this formation. Flanking this dome on the west, north, and east lie

Jun 1, 1911