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By Misra V. N, Cheng C. Y

Two types of Mt Tom Price hematite iron ore from Hamersley Iron P/L were tested using a Humboldt Wedag Jones P40 wet high intensity magnetic separator (WHIMS). The parameters tested were magnetic intensity (7000, 9000 and 11 000 Gauss), groove plate type (8R and 12R) and gap width (2.5 and 1.8 mm). It was found that at 9000 gauss magnetic intensity, reasonably high-grade and recovery in the concentrate were obtained. At 2.5 mm plate gap width, the 12R groove plate performed slightly better than the 8R groove plate. Further testwork is recommended to optimise the magnetic intensity, feed flowrate and pulp density, wash water pressure and flowrate with 12R and 8R groove plates at 2.5 mm gap width.

Jan 1, 1999

By K. E. Yassin, A. Yehia, M. Amar

Phosphate fines (size ≤ 45 μm), from the Red Sea Region, Egypt, were subjected to beneficiation process to recover the phosphorite grains from such fines. The sample is characterized by low P2O5 content (18.78%) associated with gangue minerals such as silica (22.77% SiO2) and carbonate (2.01% MgO) indicating its low grade. Phosphate pre-concentrate was prepared by gravity separation, using Falcon, where 63.37% of the phosphate, with 24.94% P2O5, 1.46% MgO, and 10.54% SiO2, was firstly recovered reducing the mass flow to the subsequent beneficiation process. However, the gravity tailing was the feed for the reverse phosphate flotation using bench scale column flotation where oleic acid was used as a carbonate gangue collector and amylase enzyme as a phosphate depressant. Under the appropriate flotation conditions (0.1% amylase, 5·10−4 mol/dm3 oleic acid, and temp. 30 °C), phospho-concentrate assaying 0.61% MgO, 13.14% SiO2, and 27.85% P2O5 with a P2O5 recovery of 55.45%, was finally obtained without the use of expensive depressants, e.g., phosphoric acid or sodium silicate. A tentative flow sheet for the whole process was postulated.

Upgrading of Superfine Low-Grade Haematite Ores by Reverse Floatation Direct Reduction Low Intensity Magnetic Separation Process

Sep 13, 2010

By Tsunenobu Nozaki

"AbstractThe PRESS-IN METHOD is widely recognised as “an environmentally friendly piling method”. However, this characteristic is only one of the fundamental advantages of the method and this paper presents the most up-to-date capabilities of the method. Due to the evolution in recent years, the Press-in Method is now applicable to 2.5m thick retaining walls, over 50m deep foundations, overcoming rock conditions and confined construction conditions.The Press-in PrinciplesThe basis of the Press-in Method is simple. The Silent Piler presses a pre-formed displacement pile into the ground by static jacking force. The reaction for the Press-in Force is generated by gripping previously installed piles. As a pile is pressed into the ground, “A Pressure Bulb” is formed around the pile toe. Accordingly, higher bearing capacity can be generated compared to driven piles without disturbing the ground and producing any vibration. (A comparison of jacked, driven and bored piles in sand (2005), Deeks et al.)Applicable Pile ProfileThe Press-in Method is applicable to most of the steel piles available on global market i.e. U sheet pile in single form and pair, Z sheet pile, also in single and pair and Tubular Pile as described in Figure 2. Wall thickness of those piles can be 0.3m to 2.5m and moment of inertia of the wall ranges up to about nine million biquadratic cm per meter, which can deliver similar elastic modulus EI (kNm2/m) to 2.0m thick diaphragm walls and can be utilised for extremely deep excavations required in today’s construction industry"

Jan 1, 2014

By John N. Cunningham

Despite the wide use of micropiles for rehabilitating and retrofitting existing structures, little is known regarding the load-transfer distribution of grouted micropiles in various soil deposits. The rehabilitation of a concrete-frame warehouse in Portland, Oregon, required provisions for the seismic restraint of a new shear wall; the installation of two micropiles was specified to meet project requirements. The micropiles were uncased, 19-m (63-ft) long, 200-mm (8-in) nominal diameter, and reinforced full-length with a 64-mm (No. 20) diameter hardened steel threadbar. Due to space limitations, a sacrificial, instrumented micropile was installed near the two production piles to verify design assumptions. This paper describes the geologic setting of the project within the unsaturated Missoula Flood deposits, instrumentation, load-displacement behavior, load transfer, and Beta-coefficients for the sacrificial micropile.

Jan 1, 2011

By Wern-ping Chen, Jean Habimana, Jinyuan Liu, Mirza M. Rabbaig, Robert Barbour

To mitigate and control the combined sewer overflows from 17 outfalls in the City of Detroit, three outfalls in Dearborn Heights and eight outfalls in Redford Township, the Detroit Water and Sewerage Department has completed the preliminary design of a storage tunnel in 2005. In 2006, a final design has revised the alignments and the inside diameter (ID) of the tunnel. The revised tunnel system includes an 11.28-km(7-miles) 9.14-m (30-ft) ID tunnel, a 24.4-m (80-ft) ID pump station, two work shafts about 15.2-m (50-ft) ID each, and 14 drop shafts with various IDs. This paper discusses the latest development of this tunnel system.

Jan 1, 2007

The Upper Waimangaroa mining permit is part of the Buller Coalfield and lies on the eastern side of the Stockton-Denniston Plateau. The mining permit area is estimated to contain a total in-ground coal resource of 58 million tonnes, contained within 13 separate coal resource .blocks. The coal is Bituminous High Volatile B rank with export potential as semi soft coking or thermal coal. The Northern Opencast mine is the first mine proposed for Upper Waimangaroa and consists of the three resource blocks at the northern end of the permit area. The highwall of the mine will cut into the Mt William Range resulting in overburden cover of up to 150 metres in some areas. The ability to rehabilitate the area after mining was a major consideration in the design of the mine. The Northern Opencast area has been geologically mapped, extensively drilled and effectively modelled using Vulcan software. Three distinct coal seams are present and the mineable in situ resource is estimated at 8.7 million tonnes of which approximately 7.1 million tonnes is likely to be recoverable. It is proposed that this resource will be mined using opencast methods and the void will be backfilled with overburden. The life of the mine is at this stage estimated at 19 years based on an annual production of 500,000 tonnes at 1.8% sulphur and the Upper Waimangaroacoal will be blended with low sulphur coal from the Greymouth Coalfield to meet export specifications. The Northern Opencast area contains a range of native flora and fauna and physical features which make it an environmentally significant area. Mining will totally modify the area, thus an effective rehabilitation scheme is an integral part of the mine plan. Various rehabilitation methods will be used, and wherever possible, the backfilled areas will be rehabilitated so as to resemble the original area as closely as possible.

Jan 1, 1998

By R. W. Baker

"The development of uppers drilling at Brunswick Mining is reviewed. This paper describes design criteria for drilling patterns and the research required for selection of a suitable drill jumbo. The success of the uppers drilling program based on operating procedures is highlighted. IntroductionBrunswick Mining and Smelting Corporation Ltd., operates a 10 500 tonnes per day lead /zinc/copper I silver underground mine some seventeen miles southwest of Bathurst, New Brunswick .The No. 12 orebody, first discovered in 1952 by a group headed by M.J. Boylen, had extensive development, including two shallow shafts (500 ft), and test work carried out on it by St. Joe Lead between 1953-1957. However due to complex metallurgy and depressed metal prices, the operation was suspended.In 1961, a group comprised of M.J . Boylen, K.C . Irving and Patino acquired the rights of St. Joe Lead to the No. 12 property. A concerted development plan was initiated along with construction of the necessary sur face facilities and by July 1964, the property was in production at 4500 tons per day.In 1967 Noranda Mines Ltd. acquired operating control of Brunswick Mining and Smelting Corporation Ltd."

Jan 1, 1988

By M. Sandin

According to the world bank1, the mining industry consumes up to 11 percent of global energy use. In comparison, 70 percent of mining projects from the six largest mining companies operate in water-stressed regions. To steer the direction of the process industries toward more sustainable practices, more than 40 governments have adopted a price on carbon. This measure includes additional taxes on the use of fossil fuels, trade programs, new standards for renewable energy, energy efficiency mandates, more stringent emissions regulation, carbon offsets, etc. This emphasis is also supported by investors shifting their priorities to reduce risk by focusing on long-term plans, including environmentally friendly operations. The metals and mining industry is at the core of the green energy mix and electrification of vehicles. This new trend creates an astronomical increase in demand for minerals. Under a 2-degree scenario, according to the latest analysis from the world bank, as new energy technologies continue to grow, it is expected that all minerals to double in demand, and the distribution of these materials will depend on their application. • Solar panels, will account for 87% of the aluminum demand, and more than 95% of silver • Wind turbines and geothermal plants will require 98% zinc and 64% titanium. • Solar and wind energy alone will demand more than 74% of the global supply of copper, and this is without considering wiring or other infrastructure to connect the grid • Battery storage accounts for 100% of the graphite and lithium demand. (Hund, 2020) • Other materials, such as nickel and steel, are also projected to more than double in demand as they are cross-technology minerals. These materials require a manufacturing process that is accountable for the emissions proper of the transformation process. It requires that these processes move from a hindsight mode focused on reporting to a forecasting mode based on run-time measurement of GHG emissions. This is a critical first step in companies realizing an economic return for doing the right thing for the environment and their communities.

Feb 1, 2023

By D A. Williams, J C. J Boshoff

The properties of tailings that emanate from laterite nickel processing plants are significantly different to most other mine tailings. They typically comprise a mixture of fine materials that are made up of altered clays, chemical residues and salts. Neutralisation processes that are undertaken prior to tailings discharge result in a high proportion of gypsum in the tailings. The salinity of the pore fluid is commonly higher than 140 g/L of salts, dominated by magnesium sulfate. Hydraulically-placed tailings that undergo solar evaporation typically reach dry densities of less than 1 t/m3 of insoluble solids. In situ water contents after many months of drying may be as high as 80 per cent, and peak undrained shear strengths are unlikely to be greater than 20 kPa.This type of material is not conducive to upstream raising, from both a practicality and overall slope stability perspective. Even at rates of rise of less than 1 m/a, it is difficult to effect upstream raising on unaltered laterite nickel tailings. However, the authors have successfully designed and implemented upstream-raised laterite nickel tailings storage facilities. The upstream raises have been formed from both imported natural materials and air-dried and compacted tailings borrowed from the tailings beaches.Drying and associated strength gain has been achieved through various means of mechanical intervention, repeatedly exposing a zone of tailings to the atmosphere for evaporation. Field trials have been undertaken to optimise the approach, and the findings from the trials have been implemented in practice to allow stable upstream raises to be constructed. The cost savings and reduced environmental impact compared to high-volume downstream raises have been significant.CITATION:Williams, D A and Boshoff, J C J, 2015. Upstream raising of laterite nickel tailings storage facilities, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 271–280 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By Richard H. Kennedy, G. A. Swanquist, John W. King, Frank F. McGinley, Dale C. Mathews, Hans H. Adler, E. C. Peterson, Ralph M. Wilde

INTRODUCTION From the first historical records of the discovery of uranium as an element and the attempted classification of its minerals in the early 18th century-through its first uses in pigmentation and the coloring of glasses and ceramic glazes-until 1939 when it was discovered that the isotope U235, was fissionable, uranium oxide in the form of pitchblende ores and concentrates (produced mainly in Bohemia, Canada, and the former Belgian Congo) in recent times was the source of uranium compounds incidental as byproducts to the recovery of radium from this invariable associated source. In 1938 this byproduct production from pitchblende concentrates was about 471 st of U3O8, with over 90% from Canada and the Belgian Congo and only 25.85 st from carnotite ores in the United States.1 Under the impetus of the Atomic Energy Commission's (AEC now part of the Energy Research Development Administration) domestic and foreign production incentives and buying programs, and as an initial assurance of atomic armament capability of the United States and the Free World, the growth of the uranium mining and milling industry burgeoned from 1952 to 1962. After a short period of decline, in the second decade and in large commitments beyond, it has again extended its capacity to meet ever-increasing fuel demands of atomic power generation by the electric utilities industry. In 1961 the peak production in the United States alone was 17,758 st of U3O8. Peak aggregate domestic and foreign deliveries of 34,581 st of U3O8 to the AEC occurred in 1960.z Canada's maximum delivery of 13,506 st of U308 was made in 1959. These peak and continued productions in the Free World are largely from: the Mesozoic (Jurassic) and Tertiary (Eocene) sandstones in the United States; the quartz pebble conglomerates of Canada and the Witwatersrand; pegmatites, Jurassic limestones, and Precambrian complexes, with less but significant production; the phosphoria, where byproduct production is minor. This uranium production in the form of precipitated concentrates has come from the milling of ores from these sources, both directly and by retreatment of gold cyanidation tailings on the Witwatersrand. Milling of crude ore has followed these processes: conventional crushing and size preparation, ore drying when required, salt roasting for high vanadium ores and byproduct vanadium recovery, carbonate or acid-leaching processes, classification sand-dine separations or countercurrent decantation (CCD) circuits and complete liquid-solids separations, resin-in-pulp (RIP) or liquid-liquid (solvent) ion-ex- change extractions, clarification of pregnant liquors, precipitation, filtration and washing, sodium and vanadium removals, and drying or roasting and packaging of the high-grade, high-purity uranium concentrate commonly referred to as "yellowcake." Coupled with the hazards and control of dust generation incident to conventional crushing and milling operations, more stringent control of airborne respirable and ingestible radioactive particulates and the protection of personnel against definitive external radiation are inherent to uranium milling. Impoundment and control of tailings and other effluents of uranium milling are more restrictive than in conventional practice, be- cause long-term disposal and containment of the uranium series of radionuclides, whether in solution or in solid form, are requisite to uranium milling and are made manadatory under regulatory agencies of government. 2. GEOLOGY AND MINERALOGY OF URANIUM Early Uses and Byproduct Production of Uranium Uranium was discovered by Klaproth in 1789 but had little commercial importance until the discovery of uranium fission by Hahn and Strassman at the close of 1938. The well-known uranium ores of Joachimsthal, Czechoslovakia, the Congo, and the Colorado Plateau were early sources of radium. Minor quantities of uranium were used for small-scale technical and industrial applications, particularly in coloring glass and ceramics, but most of the uranium was discarded. The Colorado ores were also mined later, chiefly for vanadium. Impetus of Armament Capability and Fuel Demands for Atomic Power Following the discovery of atomic fission, uranium became critically important for military applications and, more recently, as a nuclear fuel. Prior to 1966 uranium was acquired in the United States almost solely for use in the weapons program of the AEC. By 1970 the AEC had procured approximately 325,000 st of U3O8 from domestic and foreign sources. Current and future marketability is primarily dependent upon commercial demand for reactor fuel. Estimates of

Jan 1, 1985

By David S. Robertson

"IntroductionCanada has been one of the world's leading producers of uranium since atomic energy first became of practical importance in 1942. Indeed, prior to this time, between 1933 and 1940, Canada produced significant amounts of pitchblende, as a source of radium, from the Eldorado Mine at Great Bear Lake*.Uranium was first reported in Canada, however, in the middle of the 19th Century in the vicinity of Theano Point on Lake Superior north of Sault Ste. Marie. In the early 1900s, uranium-bearing minerals were reported in Quebec north of the St. Lawrence River and in pegmatites in Quebec and eastern Ontario. In 1930, G.A. LaBine and E.C. St. Paul visited an occurrence of cobalt reported by the Geological Survey of Canada in 1900, and brought the Eldorado Mine into production in 1933, as noted above, producing, in the main, silver and pitchblende.In 1942, developments in atomic energy were such that the Government of Canada, at the behest of Great Britain and the United States, requested that Eldorado, which had been closed in 1940, be re-opened to produce uranium for the Manhattan Project. In September, 1943, all discoveries of radioactive minerals were reserved to the Crown and their staking by private interests was banned. In January, 1944, the government nationalized Eldorado and formed a Crown corporation, the present Eldorado Nuclear Limited, to take over the assets. That year marked the formal beginning of uranium exploration in Canada.The Period 1944 to 1948In 1944, the Crown Corporation and the Geological Survey of Canada began exploring for uranium deposits, largely in the areas of Great Bear Lake and Lake Athabasca. In that year, A. W. Joliffe of the Survey visited properties on the north shore of Lake Athabasca near Beaverlodge Lake and recommended that Eldorado acquire claims in the area. In 1946, P. St. Louis and E. Laurum, prospectors working for Eldorado, found the pitchblende veinlets that led to the Ace Mine. Shaft sinking began in 1951, and production, through a carbonate leach plant, began in 1953.Continuing drilling on the Eldorado claims led to the Verna ore bodies, some 6,000 feet northeast of Ace, on which shaft sinking started in 1954."

Jan 1, 1986

By Phillip I. Merritt

"IntroductionDuring and since• the war, it has been my privilege to work closely with those in Canada who are responsible for the vital raw materials needed in our co-operative atomic energy programme. The understanding which has developed between our two groups in this all-important enterprise has been a great source of pleasure. We in the United States are aware of the importance of the contribution made by Canada to this project, and we look forward to continuing our mutually advantageous relationship.The impact of World War II, and the decision by Canada, Great Britain, and the United States to join in a programme for the development of atomic weapons, created a sudden and immense demand for uranium minerals. Early in the raw materials programme, it was evident that sufficient raw materials to fulfill war-time atomic weapon requirements could be secured from three sources: the rich pitchblende deposits of the Eldorado , mine at Great Bear lake; the Shinkolobwe mine in the Belgian Congo; and as a by-product of the vanadium industry of the Colorado Plateau in the United States. In the early part of the programme, therefore, our joint efforts were directed toward obtaining immediate maximum production from these localities. The contribution made by Eldorado Mining and Refining (1944), Limited, both in supplying and refining raw materials, was and continues to be of vital importance.In addition, it was also obvious from the first that in this programme, as in any mining enterprise, exploration activities directed•toward the discovery and development of new sources of uranium ore were essential if production were to be maintained over an extended period of time. In order to satisfy obvious security requirements during the war, it was necessary to proceed with this exploration programme, both in Canada and the United States, as secretly as possible. With the end of the war, and the revelation that an atomic weapon had been developed, however, secrecy in exploration was no longer required. The important thing was to get on with a broadened exploration programme."

Jan 1, 1950

By A. H. Lang

"IntroductionMUCH PROSPECTING, exploration, and development work was done for uranium in Canada in 1952, chiefly in northern Saskatchewan and in the Great Bear Lake region of the northwest Territories. The outstanding feature of the year was the great amount of work done in preparing for production at the Ace mine of Eldorado Mining and Refining, Limited, in the Goldfields region . of Saskatchewan. Many private companies and prospectors were also active in this region. Most of the other parts of Canada where uranium has been found received less attention than during the last few years, partly because so much interest was taken in the Goldfields region.In presenting this short summary of the year's activities now, the writer is handicapped because the season is not yet over; some discoveries have probably not yet been announced, and there has not yet been time to digest the numerous reports that have been sent in by companies and prospectors. In any case it would be impossible to give details for most of the discoveries and properties, because that would require a long report, and because that information is classed as confidential until released by the discoverers and companies concerned. It is only possible, therefore, to give a few generalizations, a brief out-line of the activities in northern Saskatchewan, even briefer ,accounts of the work in other parts of the country, and a few details that property owners have informed the writer he may publish or that have already been published by the owners."

Jan 1, 1953

Uranium exploration over a wide area of the Southern Frame Embayment, South Australia, has defined a number of Lower Tertiary fluvial palaeochannels incised in older rocks. The buried channels contain similar stratigraphicsequences of interbedded sand, silt, and clay, probably derived from the adjacent uranium-rich Olarv Provinee. Uranium mineralization is pervasive within two major palaeochannels, and four small uranium deposits have been found in the basal sands of these channel sequences, at the margins of extensive tongues of limonitic sand.One of the channels is examined in detail with respect to channel morphology, stratigraphy, and rock alteration and the geology and ore controls of the contained uranium deposits are described.A geochemical zonation reflected by variation in limonite, pyrite, carbon, and humic malleI' is defined across one of the deposits. A genetic model is proposed suggesting formation by a uraniferous geochemical cell which migrated down the stream gradient and concentrated uranium on its lateral margins adjacent to the channel bank.

Jan 1, 1978

By Chuck Edwards

"Milling operations in northern Saskatchewan’s Athabasca Basin have produced uranium continuously since 1975. Over that period, the Athabasca Basin has been one of the world’s premier uranium camps, yielding more than 660 million lb of U3O8. In this paper, the author describes former and current milling operations and discusses why and how the milling process has changed and developed over the past 35 years. The author’s considerations for the future of uranium extraction in the Athabasca Basin close out the paper.INTRODUCTIONThe roughly oval Athabasca Basin in northern Saskatchewan occupies nearly one third of the surface area of the Saskatchewan Shield. Its sandstone-like deposits lie unconformably on the older basement. The basin hosts many high-grade unconformity-type uranium deposits(Saskatchewan Energy and Resources, 2010) for which the Athabasca Basin is world famous. Uranium production in the Athabasca Basin has come from four mills. In the order of startup these are Rabbit Lake, Cluff Lake, Key Lake and McClean Lake. General data (AREVA, 2010; Cameco, 2010; Denison 2010) for each mill are shown in Table 1."

Jan 1, 2011

By Miezitis Y

A weak airborne radiometric anomaly was examined in the field and the presence of uranium confirmed. Rotary-percussion drilling showed the presence of uranium but a subsequent programme of diamond and rotary percussion drilling indicated that the concentration of uranium was uneconomic. Within the tufts and volcanics of the prospect the uranium existed as uranyl phosphates within the oxidized zone. Geological mapping and the diamond drill core showed that the Stag Creek Volcanics are part of the Lower Proterozoic Masson Formation, probably with member status, rather than the expression of an Archaean basement ridge. This change in the interpretation of the fundamental structure of the Pine Creek Geosyncline has led to a reexamination of the stratigraphy and to suggestions which differ from the current concept.

Jan 1, 1977

By K. Wenrich

The uranium industry has made a dramatic turnaround in the past three years that even the most optimistic economist was not willing to predict during the uranium downswing of the 1990s. Uranium reached a 30-year low in February 2001 of $6.50/lb. By the end of February 2006 it had soared to $38.50/pound. This nearly 600% increase in the uranium spot price within 4 years dwarfed the increase in gold price that has barely mustered a 100% increase. The initial slow rise from $6.50 in February 2001 to $10.75 in April 2003 (fig. 1) was primarily driven by the decrease in the value of the dollar. Since then several factors have contributed to the soaring price: (1) The awakening of many to the simple fact that uranium supply has not met demand for several years and that the world’s stockpiles are being drawn down, (2) How sharply this fragile supply can be impacted by disasters at the world’s major uranium production facilities, such as a) the flooding of the McArthur River Mine in the spring of 2003, b) fires at Olympic Dam, c) the potential that Rossing, with an annual capacity of 4000 tonnes uranium might close by 2007, (3) the withdrawal of Tenex from the HEU (highly enriched uranium) feed agreement, and (4) the announcement by the Chinese of their intent to build 30 new nuclear reactors.

Jan 1, 2007

By Lynn C. Jacobsen

Among the unforeseen consequences of the 1973 Arab oil embargo has been a considerable array of new or increased taxes on the so-called energy minerals. These taxes will be the subject of this report. Both Federal and State taxes have been enacted, but I will be concerned mostly with state severance taxes and particularly those on uranium. Severance taxes are considered to include all taxes having the distinctive feature of being applied on a natural resource at the stage of extraction. The tax may be based on units of production or on value, and if on values it may be on gross value or on gross value less either arbitrary or cost-related deductions. The tax has a number of aliases - resource excise tax, conservation tax, privilege tax, mining excise tax, ad valorem production tax, and more - and this makes comparison of tax burdens among states difficult. The windfall profit tax on oil is an example of a severance tax at the Federal level. Severance taxes are an established feature of state tax systems, but they continue to be a controversial issue, and proposals to raise or modify existing severance taxes are regularly submitted to the legislatures of the Western energy producing states. No concensus exists as to what is a reason- able and proper level of severance taxation or to the form it should take. The taxes which have been adopted by the various states reflect the interaction of a variety of interests and the specific circum- stances in each state. What follows is a summary of theoretical, practical, and emotional viewpoints and arguments that surface in any statehouse in which a severance tax bill has been introduced. The New Mexico experience will be heavily relied upon. THE ECONOMISTS Marginal effects. A severance tax which is based on a gross percentage of revenue or on units of production is a constant addition to variable costs, and to the mine operator has the same effect as any other increase in operating costs. The direction of these effects is straightforward: the tax will cause the property to have a lowered present value, to be mined at a lower rate than without the tax, raise the minimum grade that will be mined, lead to lower total recovery, make marginal properties sub-marginal and discriminate in favor of richer, more profitable operations (Lockner, 1965; Steele, 1967). In the short run, production facilities are fixed and imposition of a severance tax will have little effect on production levels. In the longer term, capital is mobile and investment and exploration expenditures will shift from minerals and jurisdictions with high taxes to those with low taxes. Over a considerable range of taxation the effect will be to change the relative position of the taxing state, but an overly optimistic evaluation of the capacity of mineral producers to absorb a tax can bring an industry to a halt. It is generally acknowledged that imposition of high severance taxes on taconite in Minnesota stopped development completely, and that only the adoption of a constitutional amendment limiting the amount of taxes that could be imposed in the future brought the firms back and encouraged them to make the huge investments required (Weaton, 1969). A tax which is a percentage of the net operating income (gross revenue less cash operating costs) does not influence the cut-off grade for recovery nor change the time preference for extraction, and hence, is free of the negative features of the tax applied to gross revenues or units of production. In theory it is a more efficient tax but relative administrative complexity and inherent difficulty in predicting revenue have discouraged its use. The Wyoming severance tax on uranium, which uses grade of ore as well as price in establishing taxable value, is the most cost related, and hence, the most neutral and efficient of the various state severance taxes on uranium. Economic rent. Despite the discrimination and the anti-conservation aspect inherent in most severance taxes, economists generally endorse their use because they are seen as a vehicle to appropriate rents - that is, returns greater than the long-run competitive supply price. Conspicuous examples of supposed economic rents are the returns to oil producers because of the OPEC cartel, the returns of the uranium producers under AEC buying contracts in the 19501s, and the high prices obtained by the uranium producers for contracts entered into in the 1976-1979 period. Mining of coal in the Western states is believed by some to generate huge economic rents because of the OPEC caused increase in price of a competitive fuel (McLure, 1978, p. 261), and possibly because of clean air regulations favoring the burning of low-sulfur coal. In theory, such surplus returns could be taxed completely away without affecting supply. In practice, the situation is more complex (Steele, 1967, pp. 234-236); economic rent of mineral production is an elusive quantity involving as it does replacement costs, and technical and market risk, and it, like beauty or pornography, probably exists mostly in the eye of the beholder. Rent may also be perceived to be present in the upper portion of a cyclic market which also has a downside. Where rent exists, it is almost certain to be short-lived - cartels self- destruct, government subsidies end, competitive adjustments occur - but the taxes imposed to capture it tend to be immortal. There is little doubt that the perception of un- usual and undeserved (obscene) profits in the mid- and late 1970's was a major factor in the adoption of energy mineral taxes strikingly higher than had been previously considered. At the New Mexico legislature of 1977 supporters of a moderate tax were repeatedly confronted with some variant of the statement, "You can't expect me to believe that a

Jan 1, 1982

By Michael Davis

In the fairly recent past, with a history of cheap and abundant energy, it has been possible to predict with reasonable confidence that world energy demand would continue to double about every 15 years. Those who attempted to forecast the role of nuclear energy in future electricity generation could also start with the fairly safe assumption that electricity demand would increase even faster : with a doubling in demand about every 10 years. To estimate the likely future world demand for uranium it was then necessary to introduce a number of other assumptions including the rate of penetration of nuclear energy, the timing and the specific fuel requirements. This series of assumptions naturally compounded the uncertainty, but, remarkably, usually led to future uranium demands being overestimated. Such a bias which has almost always been observed in predictions made over the past 20 years has increasingly made uranium producers sceptical when expected to match the forecast demand with increased production capacity and supporting reserves. This scepticism has, of course, been reinforced by the persistence so far of a buyers' market in uranium throughout the entire period of emergence of commercial nuclear electricity generation.

Jan 1, 1974