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By Robert B. Parsons

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

Jan 1, 1986

By Shosei Serata

The application of conventional rock mechanics methods to complex ground is very difficult. Yet. In most underground mining, the ground is complex. Therefore. conventional methods are not only difficult to apply but are also generally ineffective in improving underground operations. Similarly, conventional rock mechanics instrumentation has not significantly contributed to improvement of mining practice. Rock mechanics instrumentation in underground mining operations is often considered to be" merely an expensive nuisance. A new system of mine instrumentation is changing this traditional view. The new instrumentation method, called the SPDR method, was originally devised by Dr. Shosei Serata to meet the specific requirement of establishing the Stress Control Method of mining upon a solid quantitative foundation. This instrumentation method has contributed substantially to the widespread success of Stress Control mining under widely varying ground conditions in different types of underground mines (1.2.3.4). The instrumentation method provides an effective means for optimizing Stress Control mining patterns, simultaneously achieving reduction in production costs and substantial improvements in safety (5). The principles and methods of the new instrumentation method are described below, with field examples.

Jan 1, 1986

By K. Fuenkajorn, J. J. K. Daeme

Ring tension tests have been conducted on 229 mm (9 in) diameter disks of Grande basaltic andesite and Pomona basalt with various center hole sizes in order to study the relationship between ring tensile strength and relative hole radius (hole radius/disk radius). The tensile strength, [ ] decreases as the relative hole radius, [ ] increases. A power equation, [ ] where C and R represent the coefficients of strength and shape, respectively, adequately represents the ring tensile strength as a function of relative hole radius over the range investigated. This equation can be used to distinguish the effect of the hole size from the strength results, to predict the tensile strength of a ring sample containing arbitrary hole sizes, and to approximate the critical relative hole radius of the material tested.

Jan 1, 1986

By Dale R. Ralston, Roy E. Williams, Gerry V. Winter, George L. Bloomsburg

GENERAL STATEMENT Data frequently can be collected by several dif¬ferent methods. The method required for the nec¬essary precision for inflow prediction to mines should be selected and other methods avoided. Pre¬cision monitoring or measuring techniques fre¬quently require more time, expertise, and expense in their implementation that may not be justifiable. The temporal distribution of the data needs also may dictate the method used for data collection. Continuous recording devices may be required for time sensitive data whereas point measurements of other parameters may be adequate. Data needs will vary as the hydrologic investigation proceeds. In¬itial data needs may require only a qualitative col¬lection of data such as the areal distribution of precipitation. Subsequent data needs may require the measurement of ground water levels to the near¬est hundredth of a foot. Data requirements can be difficult to fulfill for ground water systems. This is particularly true for anisotropic, heterogeneous hydrostratigraphic units since the hydrogeologic parameters vary both ver¬tically and areally. Techniques exist for determining the storage characteristics of both unconfined and confined hydrostratigraphic units but these pro¬cedures require the installation of multiple wells in the same unit which may be impractical. Specific tests are discussed subsequently that permit the determination of vertical hydraulic conductivity. Data collected from field procedures or tests are generally preferred to laboratory derived data. This is especially true for hydrogeologic parameters such as hydraulic conductivity. SURFACE WATER SYSTEMS Precipitation Precipitation data can be collected from sources that maintain a historical record. The US Depart¬ment of Commerce, National Oceanic and Atmos¬pheric Administration (NOAA), maintains weather observation stations across the country. Such a sta¬tion frequently can be found near a proposed mine site but the type of weather data collected varies from station to station. Fortunately, precipitation data are collected ubiquitously. The data collected by NOAA can be purchased for the area of interest in the form of monthly and annual tabulations. Private weather stations constitute a second source of precipitation data. Existing data usually are analyzed by one of three methods. The station average method merely sums the depth of precipitation at each station and divides the sum by the number of stations as fol¬lows: [ ] where Pavg is the average precipitation (L), P, is the depth of precipitation at station i (L), and N is the total number of stations. This method is applicable where there are a relatively large number of stations uniformly distributed across the area (Hjelnfelt and Cassidy, 1975, pp. 71-72). The second method, called the Thiessen poly¬gon method, weights the precipitation at each sta¬tion in direct proportion to the area it represents without consideration of topography. The stations are plotted on a map and perpendicular bisectors are drawn on the lines connecting the stations. The polygons formed by these bisectors constitute the area that the precipitation for that station repre¬sents. The overall precipitation can be calculated with the following equation:

Jan 1, 1986

For a large scale open pit mining and concentrating operation, on a low-grade disseminated ore body, it is possible to set an approximate lower bound on economically feasible operating scales and an approximate upper bound on economically desirable scales in a relatively straight forward manner. The optimum scale ofplanned operations, with respect to the objective ofmaximisation ofthe net value ofthe orebody, will have to be arrived at by iterative planning runs, but it may be expected to lie close to this upper bound. The effects of infrastructural costs and of the addition of a risk premium to the cost of capital, to form the discount rate for planning purposes, are considered theoretically and by worked example. It is concluded that a perceived special, unsystematic, risk should not be accounted for by the use of such a risk premium as this is inducive to placing a greater amount of investment capital at risk, for no greater return-rate to investment.

Jan 1, 1986

By B. M. Das, D. B. Cross

"In June 1983, the Computer Applications and Process Control Committee (CAPC) of the Canadian Institute of Mining and Metallurgy (CIM) circulated a questionnaire to coal mining, exploration and consulting companies in Canada to determine the industry's level of interest in holding a workshop-style meeting to introduce company personnel to ""state-of-the-art "" computer systems designed to carry out specific technical and management junctions. It was necessary to conduct the survey to determine the specific fields of application and the nature of training which are of most interest.Almost universally, the companies expressed interest in computer workshops and training for applications in the Canadian coal industry. The survey showed that all categories of personnel felt the need for some sort of training. Areas of specific interest identified were: exploration and geology, mine design, reserve calculations, coal mining technology, coal preparation, rock mechanics, ventilation, financial planning, and process simulation. The details of this survey together with an assessment of the significance of computer applications in the Canadian coal industry are presented in this paper."

Jan 1, 1986

By T. H. Patching, M. W. Mikhail

"The gas sorption and emission characteristic of coals are important to the planning and conduct of mining operations. Methane drainage from coal strata can also provide a supply of fuel in certain circumstances. Gas emissions have also created hazards during the handling and transport of coals and the release of gas also appears to be related to the yield of fine sizes during mining and processing operations.This paper summarizes studies at the University of Alberta on the permeability and gas emission of certain bituminous coals. Permeability of 'solid' samples was found to be drastically reduced by confining pressure. An emission index, .P, which has been related to outbursting behaviour of coals, has also been related to the proportion of fine s in cleaning plants. Gas sorption isotherms are dependent on temperature, moisture content, the gas involved and the type of coal and can be approximately expressed by the Langmuir or the Freundlich equations. Sorption values in sections taken across a given seam were similar but considerable differences were found in . P indices in the different coal layers of a seam.IntroductionThe emission of gases, especially of methane, from coal has been a subject of great interest (and sometimes a matter of life and death), to those who dig and handle coal since it was first mined from underground pit s. Many studies and investigations have been carried out on gas occurrences and emissions but our knowledge of the precise mechanisms of gas sorption, desorption and flow from coal is still incomplete. It is the purpose of this paper to review the principal factors involved in these processes and to briefly rep ort some of the results that have been obtained by studies in the laboratories of the Department of Mineral Engineering, University of Alberta, and Coal Research Laboratory, Edmonton, CANMET"

Jan 1, 1986

In early 1985, Bougainville Copper Limited commissioned an automatic truck despatch system to control its fleet of 44 trucks and 9 shovels. Productivity gains in the past have been the result of increasing equipment size then improving availabilities. The emphasis now is on improving the use of that availability and in particular for trucks, in reducing non-productive truck movement. A batch allocation computer based truck control system had been in operation since 1978, so to achieve the desired improvements it was necessary to move to an automatic dynamic control system. A description of the system installed is given, together with a review of how the project was engineered, the problems encountered and the results achieved to Date.

Jan 1, 1986

By W. C. Mather

The Witbank/Middelburg Branch of The South African Institute of Mining and Metallurgy hosted a colloquium entitled 'Recent Mining and Metallurgical Developments in the Eastern Transvaal', at the Witbank Civic Centre on Wednesday, 25th September, 1985. An attendance of close on 300 delegates bore testimony to the popularity of the theme. Two well-attended cocktail parties were held at different venues on the evening prior to the Colloquium. These were hosted at the South African Coal Estates Recreation Club and Middelburg Country Club.

Jan 1, 1986

By Wang SS, Frattaroll DR

In the development of novel sulfide collectors, especially for the low-lime and acid circuits, flotation of chalcopyrite, chalcocite, covellite and pyrite was studied with both new and commercially available S- containing collectors. The natural float- ability of sulfides, water quality, and redox potentials - all of which were considered im- portant in assessing collector strength and selectivity - were also investigated. Chalcopyrite exhibited the highest natural floatability. The response to most collectors, however, was chalcocite > covellite > chalcopyrite > pyrite. Water quality had a very significant effect on both natural and collector-aided floatability. De- ionized water and tap water had a flotation suppression effect compared with doubly- distilled water. Flotation results with single minerals are correlated with those for copper and pyrite from natural ores. Several novel collectors have now been developed for sulfide flotation in acid, neutral or mildly alkaline circuits. The results for four of these collectors, which have shown promise in commercial applications, are discussed in this paper.

Jan 1, 1986

By G. Barbery

"Particle composition distribution is an essential feature of materials processed by physical separation methods. The amenability to segregate a feed material in a concentrate and a tailings stream depends to a large extent on what is called usually the ""liberation"" of the various mineral phases that are present in an ore. In fact the energy consumed in crushing and grinding has the major justification of producing particles that are as close as possible to monominerallic. Monophasic particles are able to reveal physical differences in mineral properties that make their separation possible. For many years, various authors have insisted on the concept of liberation, without noting that, in practice, it can be a pure concept which does not lead to measurements or predictions. The present paper insists on the concept of particle composition distribution, in which the complete distribution is the information to be obtained, and not the ""liberation·· of various phases, just like for particle size distribution, the complete distribution is an objective commonly desired, and not one or two values representing the coarse or fine fraction.2. NOTATIONS-EQUATIONSFor the purpose of the paper, a particle will be characterized by its volume Vp, and its volumetric composition with respect to a mineral of interest, which will be given the notation ""O"". All the other minerals present will be called ""1"". This notation does not imply that the particles are biphasic, but that we are interested in the composition of particles with respect to one phase only. The volumetric composition will be given the sybol m:"

Jan 1, 1986

By E. F. Draskovich

In 1984 a high temperature heat recuperation system was installed in the pellet plant of the National Steel Pellet Company located in Keewatin, Minnesota. The system is similar to those of Cleveland Cliffs Empire and U.S. Steel's Minntac operations. It recovers hot process air from the cooler by induced flow, and directs it to an intermediate zone between the drying and preheat zones on the grate machine. This system recently underwent further modifications in April 1985, following initial operation in 1984. The M. A. Hanna Company, which manages the property, developed the design criteria and made the subsequent recommendations for modification through its research facility in Nashwauk, Minnesota.

Jan 1, 1986

Selective open pit mining for gold has been in progress at Harbour Lights since the onset of mining in March 1985. Selective mining techniques used are similar to those in other recently opened gold mines in Western Australia. However certain practices have been introduced to accommodate the irregular distribution of mineralisation and comparatively high mill tonnage throughput. These include selective mining with large bucket excavators, sequential waste stripping - ore mining normal to the strike of the orebody and sample line preparation and ripping on bench floors. Application of these selective mining practices at Harbour Lights enables the operation to maintain delivery of approximately forty by 50-tonne truck loads of ore to the mill crusher everyday, with limited rehandling of material through ore stockpiles.

Jan 1, 1986

By Vernon PN

The Eossing Uranium Mine is a high tonnage low grade open pit operation using acid leaching for uranium extraction and ion exchange and solvent extraction for solution purification. Advanced technology, much of it computer based, has led to major economies that have contained operating unit costs over the last four years in the face of double figure inflation. An improved ore reserve block model and mine planning system have achieved a considerable reduction in the stripping ratio. Drilling and blasting costs have decreased some 25%, mainly by the introduction of heavy ANFO explosive. A centralised computer control centre for the metallurgical plant has increased labour productivity resulting in improved process control. The all-staff workforce is united with management in the objectives of creating a safe, healthy, working and living environment and a prosperous company, capable of contributing to the wellbeing of the nation and the shareholders. This situation has been brought into being by an equal opportunity policy coupled with a management system emphasising open two-way communication through all levels in the organisation. The success of this policy is highly apparent in the morale and productivity of the workforce.

Jan 1, 1986

By McLennan T, Howells E, Zastawny H, Watt J. S

Nuclear techniques have been used to determine the solids weight fraction (W) and ash content of (fine) coal in slurries independent of voidage variations. The method is based on the correlation between W and the hydrogen concentration Hsl (wt/wt) of the slurry. Hsl is determined by combining measurements of neutron moderation and ?-ray transmission. Both Wand ash content are determined by combining the above measurements with the ash-sensitive measurement of X-ray backscatter compensated by a measurement of iron K X-ray intensity.The nuclear analysis system, called the SIRO coal slurry gauge, has been proved in a six-week plant trial at the BHP Steelworks washery at Newcastle, NSW. Several probes, each containing a radioisotope source and scintillation detector, were immersed directly into the coal slurry in the feed box upstream from the bank of flotation cells. For 140 samples W, ash and voidage varied in the ranges of 0 to 13 wt percent, 26 to 41 wt per cent and 0 to 4 vol. per cent, respectively. The r.m.s. difference in solids weight fraction, determined by probe measurements and conventional assay, was 0·52 wt per cent. Ash was determined with an r.m.s. difference of 2·0 wt percent in the coal. Better sampling techniques were used in the last half of the plant trial, and r.m.s. differences were 0.35 wt per cent solids and 1·5 wt per cent ash.

Jan 1, 1986

By W. Pawlak, J. Janiak, C. Rodkiewicz, B. Ignasiak

"There is a general consensus that, in order to widen the utilization of Western Canadian coals, a major effort must be devoted to their transportation, utilization of fines, beneficiation and mining techniques. It is postulated that the concept studied extensively over the last four years at Alberta Research Council (ARC), and based on a combination of hydraulic mining, selective agglomeration with bitumen and/ or heavy oil, pipeline transportation and oil recovery from agglomerates, offers a particularly attractive solution to the problems associated with extraction, beneficiation, transportation and utilization of Western bituminous and subbituminous coals. Results of preliminary experimental work on the feasibility of pipeline agglomeration of metallurgical coal and hydraulic transportation of agglomerates are presented and discussed in the context of conventional agglomeration techniques in stirred tanks. IntroductionAlberta is endowed with enormous reserves of low-sulphur coals which could attract considerable attention of potential customers, but the remote location of this province handicaps its competitiveness on the world market. It is known that Alberta's Cretaceous, particularly metallurgical, coals differ significantly from their Carboniferous counterparts; current R&D work on indigenous coals should continue to expand in order to encourage overseas client s to use these coals more extensively.There is a genera l consensus that, in order to widen the utilization of Western coals, a major effort must be devoted to their transportation, utilization of fines, beneficiation and mining techniques."

Jan 1, 1986

By A. S. Moss, J. Linkous

Where difficult shaft sinking conditions exist, it may be appropriate to use a blind drilling technique. The success of the method is in part due to the presence of a drilling mud which fills the shaft void during excavation. The mud performs two important functions with respect to shaft stability: it reduces the influence of groundwater; and, due to the mud weight, gives a positive sup- port to the shaft walls. The application of the method is illustrated by a case history which traces the development of a shaft from the initial investigation to determine the shaft location, through the evaluation of wall stability and mud requirements, to the shaft sinking contract and actual conditions encountered.

Jan 1, 1986

By C. J. H. Brest van Kempen

The techniques developed should provide a useful tool, not only during the initial formulation of a suitable bolting plan for a new section, but also for periodic check¬ing on the utilization factor of hardware installed in the roof. Indications are that with present practice, utilization seldom exceeds 507.. Retro-fittable bolter equipment now available (FCBS?) allows doubling of the utilization factor in many cases. We are also introducing a computer pro¬gram based on the material outlined in this paper. This program can save a great deal of time in examining the real effect of implementing alternate bolting plans or using different installation techniques. It allows fine-tuning of bolt lengths, spacing and installation tension to mini¬mize roof support cost, while maximizing safe life of the mine opening. We have developed a procedure which allows easy, site-specific quantification of the need for reinforcement of a mine roof. The concept is based on the forma¬tion of a direct link between theory and empirical data to custom-fit each mine section. In its simplest form, the proce¬dure requires only recording of roof bolt torques in a sample working place (16 to 25 bolts) several times during the first week or so after initial bolting. The way in which the torque pattern changes during this time can reveal whether or not the bolts carry enough tension to maintain stability in that specific roof. From the same data, the nature of the anchorage horizon is derived. Specifically, shale or limestone can be distinguished from sandstone. If the procedure is repeated a few times (within the same mine section) with different bolt installation tensions, we can numerically characterize the roof in terms of one single value: an "effective angle of internal friction". This number can then serve to calculate trade-offs in bolting plan design, such as bolt length, bolt spacing and optimum bolt tension. Additional refinement is possible if a sagmeter is installed in the sample work¬ing place being monitored and if bolt anchorage capacity is determined. The lat¬ter can be done automatically on each bolt as it is being installed, using a system we developed and patented. Alternately, a number of pull tests could be performed. Using the sagmeter, bolt torque and anchor¬age data, it is possible to project the safe life of the supported opening. The details of the procedures described apply specifically to tensioned roof bolting, but a brief discussion paints the way for a similar analysis of full-column resin bolting also.

Jan 1, 1986

By Jeffrey M. Listak

The Bureau of Mines has conducted a rock mechanics study to monitor deformation of near-seam strata above a longwall panel in the Pittsburgh Coalbed. The primary goal was to determine the height of caving immediately behind advancing longwall face supports. This study, although site specific, provides information on the caving mechanism associated with longwall extractions so that strata behavior and its interaction with longwall face supports can be better understood. Two holes were drilled, approximately 550 ft apart along the center line of a longwall panel, from the surface to the coalbed approximately 650 ft below. Various downhole geotechnical instruments were used to monitor strata deformation. In addition, surface elevation surveys were conducted to differentiate between surface and subsurface activity. This report discusses the caving characteristics of the strata as the longwall panel approached and passed beneath the boreholes. Physical property data are also presented to demonstrate the relationship between caving behavior and local geology. Data show that immediate caving of strata above the longwall face occurred at a height less than 23.5 ft and that strata behavior above longwall extractions is highly dependent upon lithology, with major disturbances occurring at weak lithologic zones.

Jan 1, 1986

By J. H. Gray

"IntroductionIn 1980, Fording Coal Limited started conceptual planning studies which led to major changes in the long-range mining plan at their Fording River Operations. These new plans have been completed and are now in operation.To assist personnel in a timely completion of this major revision to the long-range plan, existing in-house drill hole data base and scheduling systems were used and a computerized Mine Modelling and Planning System was purchased. With these tools, plan s were developed which led to completion of initial access to the peak of Eagle Mountain and the start of mining operations in March 1983. As mining area s open up and new geo logical data is obtained, detailed plan s are being extended and revised.With the geology and mine plan s on line, this work can now be done with less effort and plans ca n be adapted to provide flexibility in mining operations. Changes in market conditions can be accommodated by moving mining operations into different seams for different coal types. The computer systems are used to revise pit designs and schedules accordingly."

Jan 1, 1986