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By Wieslaw Blaschke

The transformation of Polish economy, has contributed to the significant ownership changes and the way of management. Most of non-ferrous metals producers are now joint stock companies or stock companies, which shares are owned mostly by Polish shareholders, the State Treasury, banks or trading companies. However, as compared to the international tendencies, the cost of production of base metals in Poland are still relatively high, and the utilization of secondary sources is still very low. In this sense, the paper point out that some positive results of the current pro-ecological mineral policy in Poland have been already clearly visible in the case of non-ferrous metals smelters, where the emission of dusts and gases was significantly reduced. Therefore, if the current increasing tendency of world production of non-ferrous metals continues, Poland’s role as their primary producer will be reduced.

Sep 13, 2001

Late in 1974 at a meeting with the Cedar Coal Company in Chelyan, West Virginia, a very definite requirement for an automatic heat sensing fire suppression system for the type coal augers used in their mine was revealed. Several fires had been experienced, and while equipment loss was a consideration, operator safety was also a concern. As of that date no one had developed an automatic system specifically for fire suppression on coal augers. II. EQUIPMENT DEVELOPMENT As a result of the above meeting, an unsolicited proposal was made to the Bureau on March 1, 1975, and a contract was issued to provide the following services: A. Determine and define fire hazard problem on Compton Coal Auger. B. Modify or otherwise mike a Lease "AFEX" system suitable for protecting the fire hazard area developed in paragraph "A". C. Make installation of "AFEX" system. D. Monitor installation for reliability for a period of 90 days after installation. C. ConJurt a simulated fire test to determine effectiveness on system.

Jan 1, 1975

By David R. Maneval

At the turn of the century the keys to industrial success were coal and iron. At that time, Pennsylvania was the ranking mineral producer among the States and close to 90% of the Nations energy output was generated by coal. The growth of this Common-wealth into the greatest industrial State in the nation has been due to the huge resources of easily accessable coal found by the early settlers. It was the development of these deposits that provided the United States with a new source of fuel energy. For nearly a century, the Commonwealth was the chief powerhouse of our nation and the chief source of its industrial blood and bone. In 1928 it was truly said that coal was king in Pennsylvania. Pennsylvania that year mined a billion dollars worth of coal. A single train carrying this output would reach more than twice around the world at the latitude of Pennsylvania. Coal formed nearly 67% of the freight of Pennsylvania and was responsible for its four billion dollar iron and steel industry. Coal was the real reason why Pennsylvania although 32nd in size was second and not tenth or fifteenth in wealth, population and industry. Pennsylvania was slow to take-up her heritage as the greatest coal producing State in the union. But the knowledge that coal was present was not slow in accumulating. In fact the Indians were aware of its existence long before the white man arrived. They knew that many of the hills were underlain with black stones that would burn. It is reasonably certain that Arnold Viele, the first white man to cross the mountain in this State saw coal in them in 1692. But awareness was not enough. The population in these days was confined to southeastern corner of the State and the population at this time had little need or interest in the resources further inland. Pennsylvania anthracite was discovered in 1762 but was first regarded only as a curiosity. Commercial productions started in 1820. This stimulated the development of many native industries and extensive canal system and afterwards an elaborate net-work of railroads were constructed at great costs to bring the products of the hard

Jan 1, 1971

This paper deals with the evolution of Canadian shaft sinking technology over the last 15 years. Most, if not all, shaft excavation projects in Canada prior to 1990 were sunk using traditional benching methods with labour intensive equipment. In the late-1980s, J S Redpath Limited of North Bay, Ontario, Canada, were contracted to deepen the shaft at Atomic Energy of Canada LimitedÆs Underground Research Laboratory (URL) located in southern Manitoba. The laboratoryÆs role was underground hydrological and geomechanical research, so the project offered both time and opportunity to conduct additional experiments while sinking. The offshoot of the research program was the true birth of the Canadian version of full-face, long round shaft sinking technology. Throughout the 1990s, this sinking method has been further refined over a number of shafts. The results have been faster sinking rates, a safer work environment and an overall improvement in project economics.

Jan 1, 2002

By Syd S. Peng, C. Y. Chen

Introduction The Surface Mining Control and Reclamation Act was passed in 1977 to put an end to the uneven environmental standards and enforcement established by various coal mining states in the US. One year after passage, the Secretary of Interior was directed to promulgate permanent program regulations implementing Title V provisions of the Act. These regulations were to form the basis for state regulatory programs under the Act and to allow states to assume primary regulatory responsibility. To implement the underground mining provision of the Act, the Secretary is directed in section 516(a) of the Act to promulgate rules. But they must take into consideration the differences between surface and underground coal mining. The regulations developed by the Secretary in 1979, with respect to subsidence control, included: • a subsidence control plan as part of the permitting process; • substantive provisions establishing performance standards for subsidence control; and • provisions providing for the prohibition of mining under perennial streams, impoundments larger than 24.6 dam3 (20 acre ft), and certain public facilities and urban areas. Industry challenged the Secretary's regulations implementing the subsidence control provisions. The litigation was consolidated with all other challenges to the permanent program regulations. (Permanent Surface Mining Regulation Litigation, Civil Action No. 79-1144; D. D.C., May 16, 1980.) In two opinions dealing with the multitude of issues raised by both industry and environmental groups, the US District Court of the District of Columbia ruled against industry. It upheld the promulgated subsidence control provisions. The US Court of Appeals stayed the appeals pending the agency's review and revision of its regulations. The regulatory reform was conducted in accordance with the order from the Secretary of Interior and the President in 1981. As a result, the subsidence control regulation was revised, reproposed, and finalized in June 1983 (Federal Register). This regulation, along with others, was again challenged by environmental groups and industry. On Oct. 1, 1984, the court, after finding the Secretary's reading of the Act reasonable, upheld the 1983 subsidence regulation except for one section. On Feb. 21, 1985, in accordance with the court's ruling, the Office of Surface Mining (OSM) suspended a portion of 30 CFR 817.121 (c)(2) concerning the damage correction requirement for structures or facilities and reproposed it on July 8, 1985 (Federal Register). In conjunction with a request for public comments, OSM now also seeks comments on the omission from the 1983 rule of the requirement in the 1979 rule regarding a presubsidence survey and monitoring of damage to structures. Technical issues related to subsidence regulations The subsidence regulations of June 1, 1983, consist mainly of two parts: a subsidence control plan as part of the permitting process; and substantive provisions establishing performance standards. The latter also includes provisions for prohibiting mining under certain areas. Under subsidence control plan section 784.20, minimum require-

Jan 2, 1986

By Zoë Dugdale, Gerald Poplin, Tim Bauerle

"Fatigue presents several challenges for the mining industry. Depending on the specific occupation, daily work or operational setup on any given mine site, mining jobs can have a fair amount of labor-intensive tasks mixed with monotonous and repetitive duties. Combined with the long working hours and shift-work schedules of mining work, the prevalence of fatigue in mine workers may seem rather unsurprising.Mining is certainly not alone in facing the challenge of addressing worker fatigue. Indeed, many of the characteristics above mirror the similarities of fatigue in other industries, such as health care, aviation and security. To the extent that fatigue in mining acts like fatigue in any other industry, then any fatigue management applications, trainings, or interventions in existence can be borrowed from other industries and applied to mining in a cookie-cutter approach. However, some have argued that mining in particular is especially susceptible to increases in the prevalence of fatigue beyond the characteristics listed above due to the multifaceted combination of factors in mining environments associated with fatigue: dim lighting; limited visual acuity; hot temperatures; loud noise; highly repetitive, sustained, and monotonous tasks; shiftwork; long work hours; long commute times due to mine site remoteness; early morning awakenings; and generally poor sleep habits (Canadian Centre for Occupational Health and Safety, 2012; Legault, 2011). Legault (2011) in particular argues that it is the combination of these factors simultaneously that can make mineworkers particularly susceptible to sleep deprivation and fatigue in comparison to other industries where these factors are often not present all together. If fatigue looks and acts different in mining, as others have argued, more research is needed to determine if, how, and why worker fatigue might need to be managed differently in mining.While the burden of fatigue on the mining population has not yet been evaluated thoroughly, methods and measures of fatigue management remain a popular point of discussion. Many commercial suppliers and consultancy groups have begun to develop technologically based fatigue monitoring systems (McMillian, 2013). Some technologies can monitor vehicle operators for indicators of wakefulness, such as percent eyelid"

Jan 3, 2018

By I. Gil, J. -C. Roegiers

Abstract Hydraulic fracturing is a technology that has been utilized for more than 50 years in the oil industry. It was originally used for stimulating hard, brittle formations which typically exhibit low permeabilities and roughly linear elastic behavior. Nonetheless, an increasingly important segment of the industry is currently stimulating very soft and poorly consolidated formations; where the assumptions of ideal elasticity and relatively small fluid leakoff fail to hold (e.g. Gulf of Mexico, West Africa, Alaska, East China). In these rocks, hydraulic fracturing stimulation has been used for several years to control and solve critical production problems such as sanding and formation damage (caused during completion and drilling operations). Although successful1, the application of this method has not been accompanied by robust fracturing modeling techniques. In addition, long term production increases were often not materialized. In other words, engineers have been able, via trial-and-error, to avoid major ‘operational’ problems but with no optimization of such treatments. Thus, most hydraulic fracturing projects carried out in poorly consolidated rocks render unexpected results. A recent worldwide survey on net pressures by the Delft Fracturing Consortium (Papanastasiou, 1997) indicated that net pressures encountered in the field are 50% to 100% higher than the net pressures predicted by conventional fracturing simulators. The difference is yet higher for the case of poorly consolidated formations (Pak, 1997). The theory for the construction of a fully coupled elastoplastic three-dimensional hydrofrac simulator, specifically conceived for unconsolidated rocks, is presented in this paper. This novel model calculates the dimensions and changes in shape of the fracture(s) being created during hydraulic fracturing operations. No assumptions are made regarding either shape or geometry of the crack(s). Three main failure criteria are used simultaneously in this model: tensile and shear stresses, and volumetric strain. Incremental forms of the governing equations of equilibrium and fluid flow are presented. The scheme chosen for solving this problem is the finite elements method, which allows both equations to be solved simultaneously at any instant in time. Résumé La fracturation hydraulique est une technologie qu’a été utilisé pour plus que 50 ans dans l'industrie pétrolière. Elle a été utilisée au début pour stimuler les formations dure et fragile que typiquement ont des perméabilités basses et un comportement élastique à peu près linéaire. Néanmoins, un segment plus important de l'industrie stimule actuellement des formations mal consolidées; où les suppositions d'élasticité idéale et de relativement petite fuite de fluide ne se tiennent pas raison (par exemple le Golfe de Mexique, l'Afrique d'ouest, Alaska, la Chine de l'est). Dans ces roches, la stimulation avec fracturation hydraulique a été utilisée pour plusieurs années pour contrôler et résoudre les problèmes critiques de production comme les dommages de formation et d’ensablement (causé pendant les opérations de l'accomplissement et forage). Bien que prospère, l'application de cette méthode n'a pas été accompagnée de techniques robustes pour le modelage de fractures. En outre, les augmentations à long terme de production n'ont pas été souvent concrétisées. En d'autre termes, les ingénieurs ont pu, via le procès et l’erreur, éviter les majeur problèmes ‘opérationnel’ mais avec aucune optimisation de tels traitements. Ainsi, la plupart des projets de fracturation hydraulique ont été exécuté dans des roches mal consolidées et ont rendu résultat totalement inattendu. Une récente étude mondiale sur les pressions nettes par le Consortium Delft pour Fracturer (Papanastasiou, 1997) a indiqué que les pressions nettes qu’ont été rencontré dans le champ sont environ 50% à 100% plus hautes que les pressions nettes prédites par les simulateurs fracturant conventionnels. La différence est pourtant plus importante pour le cas de formations mal consolidées (Pak, 1997). La théorie de construction d'un simulateur elastoplastic d’hydrofrac à trois dimensions entièrement couplé, en particulier conçu pour les roches non consolidés, est présentée dans ce papier. Ce nouveau modèle calcule les dimensions et les changements dans la forme de(s) fracture(s) étant créé pendant les opérations de fracturation hydraulique. Aucune supposition n’a été faites en ce que concernant la forme ou la géométrie

Jan 1, 2003

By Avery H. Reed

RECORD production of marble, kaolin, scrap mica, and talc high-lighted the mineral industry of Alabama in 1962. Among the States, Alabama ranked second in scrap mica, third in the production of bauxite and native asphalt, and fifth in iron ore. The mineral industry of Alabama was dominated by mining and processing of coal and iron ore, and the manufacture of cement, which together comprised 73 percent of the total value of production, compared with 72 percent in 1961. Other important industries were the production of crude petroleum, and stone quarrying. Leading companies were Tennessee Coal & Iron, Southern Cement Co., Southeastern Electric Generating Co., Alabama By-Products Corp., and U.S. Pipe & Foundry Co.

Jan 1, 1963

By B. J. Vorster

Introduction The South African Iron and Steel Co. Ltd., in Sishen, operates a large iron ore mine in the Cape Province of the Republic of South Africa. The mine is about 600 km (370 miles) west of Johannesburg. Its annual capacity is 100 Mt (110 million st) of ore and waste. Present production is 60 Mt/a (66 million stpy). The mine operates continuously six days a week. Primary equipment includes 55 154 t (170 st) Wabco and Unit Rig trucks and 14 P&H shovels. During 1979, a feasibility study into the application of a trolley assist system was launched. This was due to the escalation in diesel fuel costs and the appeal by the South African government to reduce the use of fossil fuels. Tests and economic evaluations proved the system technically feasible. The estimated discounted cash flow return exceeded 50%. Diesel fuel consumption would be reduced by 120 ML (31.7 million gal) in the next 10 years. The construction of 7.7 km (4.8 miles) of line and the conversion of 66 154 t (170 st) trucks were completed in March 1982. System description The conventional 154 t (170 st) diesel electric rear-dump haul-truck is equipped with two direct current wheelmotors in the rear axle. They drive the rear wheels through planetary gearboxes. A 1.2-MV (1600-hp) diesel engine and an alternator is used to power the wheelmotors. The trolley assist system consists of an overhead power line, a current collector mounted on the truck, and add-on control equipment where external electric power is routed by way of the current collector to the motorized wheels. The diesel engine is used to propel the truck on level sections. On inclines, the wheel-motors of the truck are coupled by way of a current collector to the externally generated electrical power supply for propulsion. The diesel engine, having lower output than the wheelmotors, limits the truck performance. Previously, maximum output was required from an engine on inclines. By supplying the wheelmotors from a virtually unlimited outside electric energy source, the truck performance is enhanced to the extent that speed is increased by 46% and fuel consumption reduced by 75%. System design The unique operational requirements of this mine rendered the already proven trolley pole system useless. Minimum loss in truck mobility and flexibility was required. Overhead lines and substations were required to be relatively light and portable. This enables fast repositioning of a line with no loss in material. These unique specifications set the base for the design of the Sishen system. Steel I-beams, 203 x 203 mm x 52 kg/m (8 x 8 in. x 35 lb per ft) with lengths varying from 8.3 to 11.3 m (27 to 37 ft), mounted on base plates about 4 x 2.6 m (13 x 8.6 ft) were used as masts. The masts were erected at about 50 m (165 ft) and the base plates covered with about 12 t (13 st) of iron ore to keep them absolutely stable. Results from the pilot installations indicated that using single cantilever cross arms for insulator and overhead conductor suspension was not practical. The tension in the overhead varied too much with temperature changes, causing too much sag in the lines. There had to be a positive and negative conductor. It was decided to suspend each polarity on an independent cantilever and keep the conductors under constant tension by weights acting through a two-to-one pulley tensioning arrangement. For each overhead conductor, a standard 160-mm (6.5-sq in.) grooved copper railway conductor was used. To obtain the necessary current carrying capacity, two of these conductors are used in parallel per pole. Insulators are rated at 4 kV and are of the composite type. An 11-kV three-phase line, supported by the pantograph line masts on the opposite side of the dc line, feeds the rectifier stations. The rectifier stations consist of an 11-kV to 860-V, three-phase 1.46 MVA transformer and a three-phase diode bridge rectifier. The output voltage is 1200 V do earthed through a current limiting resistance network so that the line po-

Jan 4, 1986

By L. G. Wang

The stability of foams and froth plays an important role in flotation, in which small amounts of relatively weak non-ionic surfactants (frothers) are used to produce air bubbles and foams. In the present work, factors affecting the stability of the foams produced in the presence of common frothers, such as n-pentanol, n-octanol, methyl isobutyl carbinol (MIBC), and polypropylene glycol (PPG), have been studied. We used the thin film pressure balance (TFPB) technique of Schelud-ko-Exerowa type to measure the equilibrium film thicknesses. The results were used to determine the contributions from the various surface forces to the disjoining pressures in the thin lamellae (foam) films formed between air bubbles. In addition, we used a model developed by Wang and Yoon (Colloids and Surfaces A: Physicochem. Eng. Aspects, 2006) to calculate the elasticities of the lamellae films at the critical thicknesses at which films rupture. The surface forces and elasticity da-ta were then compared with the foam stabilities in the presence of the various flotation frothers. It was found that foam stabilities are controlled by both film elasticity and surface forces, the relative contributions of which change with frother type and concentration. In general, surface forces play a more important role at relatively low frother concentrations, while elasticity plays a more important role at higher concentrations. At the frother additions usually employed in the mining industry, MIBC relies on surface forces while PPG-400 relies on film elasticity in producing stable foams. The former is capable of dampening the hydrophobic force, which is a major attractive force destabilizing lamellae films, while the latter is capable of reducing surface tensions at low concentrations.

Jan 1, 2014

By F. Crundwell, A. J. Lathwood

A number of base-metal operations would like to increase production to take advantage of the higher metals prices. In general, this higher production should not be achieved with major operating changes. In hydrometallurgical facilities, leaching and pressure leaching represents one area where upfront limitations may be a bottleneck to the capacity of the entire plant. An assessment of the capacity of the leaching tanks and autoclaves was performed using a predictive model within the AweSym flowsheet simulator. The model is described, and the results of the application of the model to a number of different leaching reactors are presented. It is argued that the leaching number, which relates the residence time, particle size and the leaching rate, is of prime importance. Finally it is shown that there are some unexpected catastrophic events in increasing production capacity without a thorough understanding of the leaching operation.

Jan 1, 2007

By Y. F. Bulgakov, Y. V. Melnikova, V. S. Zakharov

A new technology of atmosphere in inertization of fire section with the help of gazeous nitrogen is presented in the report. This technology is based on membrane air subdivision into two streams, concentrated with nitrogen (up to 99%) and with oxygen correspondently with subsequent giving them into the place of fire. This technology belongs to environmentally friendly ones and it has a great number of technical, mobile and economic advantages comparing with the rest of well-known methods of fire extinguishing. This technology application in Ukrainian coal mines allowed to reduce the member of isolated places of fire at the expense of their extinguishing efficiency.

Jan 1, 2003

By Arne Landsberg

A study of the chlorination kinetics of germanium, silicon, iron, tungsten, molybdenum, columbium, and tantalum has been made to determine the effects of temperature, chlorine concentration, geometric surface area and gamma radiation. The reaction products were volatile at the temperatures used this making it possible to follow the reaction rates by weight loss of the solid. Chlorination rates of germanium, silicon, and iron were found to be directly proportional to chlorine concentration while the rates for tungsten, molybdenum, columbium, and tantalum were proportional to the 0.5 to 0.6 power of chlorine concentration. A good correlation of reaction rate and geometric surface areas was not obtained because the true surface area of the samples could not be measured. Intense gamma radiation had no effect on reaction rates. The Arrhenius activation energies determined over the temperatures used are as follows: Germanium, 27 kcal/mole (233°-241° C); silicon 33 kcaL/mole (375°-517° C); iron, cold rolled, 20 kcal/mGle (259°-325° C) annealed, 21 kcal/mole (293°-337° C); tungsten, 43 kcal/mole (617-776° C); molybdenum, 37 kcal/mole (445°-4910 C); columbium) 34 kcal/mole (229°?255° C); and tantalum, 29 kcal/mole (370°-449° C).

Jan 1, 1965

By Gary J. Cwick

Mineral resources of the Rice Valley Wilderness Study Area (WSA), in the Mojave Desert of southeastern California, were investigated by the U.S. Bureau of Mines and U.S. Geological Survey during 1980. The study consisted of an examination of mines, prospects, and mineralized areas by the Bureau: of Mines and geological, geochemical, and geophysical investigations by the Geological Survey. Little indicated potential for the presence of mineral resources exists in the valley floor segment of the study area. The Big Maria Mountains section of the study area has some potential for mineral resource development. Decorative building stone from both bedded quartzite deposits and weathered limestone surface rubble (driftwood stone) has been produced from the Big Maria Mountains segment of the study area. Total production is unrecorded but probably small. A 700,000 ton (640,000 t) quartzite resource was inferred and 4,500 tons (4,100 t) of driftwood stone within the study area was estimated. A relatively pure limestone deposit inside the study area contains an inferred resource of 14 million tons (13 million t). One prospect suggests a potential for the presence of manganese resources although none were estimated. The likelihood of discovering oil, gas, coal, uranium or geothermal energy is low; potential sources are not known to exist.

Jan 1, 1982

By Belinda Campbell

Tools for Consistency 1. GIS Web Site 2. National Project Management System 3. Site Grouping Approach (721 PIDs) 4. Mine Reclamation Standing Offer Agreements ?Contracting tool 5. Remedial Objectives Guidance Document Background ?CBDC (now ECBC) is a Federal Crown Corporation and falls under federal jurisdiction. ?When it stopped mining coal, CBDC turned its attention to cleaning up and closing out its industrial sites. ?Public Works and Government Services Canada is common service provider to the GoC. ?Expertise in environmental, engineering, IT, project management, communications, GIS, real property management.

May 1, 2011

The Bureau of Mines studied available information on the nature and occurrence of potential sources of aluminum in the United States, its Pacific island possessions, and Puerto Rico to obtain data for use in evaluating the production capability and costs of extracting the aluminum from such materials. The quantity, type, and grade of the materials range from 4 billion tons of bauxite, bauxitic clay, and kaolin averaging 33 to 42 percent Al2O3 to nearly 600 billion tons of anorthosite containing only 27 percent Al2O3. Principal deposits of bauxite, bauxitic clay, and kaolin occur in Arkansas, Georgia, Hawaii, and Oregon. Major anorthosite deposits are located in New York, Wyoming, California, Idaho, and Montana. About 11 billion tons of material in deposits of various types of clay, the kyanite group of minerals, laterites, and shales averaging 27 to 30 percent Al2O3 comprise additional resource's from which aluminum some day may be extracted. Material meeting specifications of the study was found in only 22 States and the Pacific island possessions. Utilization of these large low-grade sources of aluminum awaits development of processes that are economically competitive with the Bayer process for extracting alumina from baxuite, which is at present the only commercial ore of aluminum. Changes in economic and political conditions also may play important roles in the eventual development of the potential sources of aluminum.

Jan 1, 1967

By T. P. Dolley

Domestic production of industrial sand and gravel in 2004 was about 29 Mt (32 million st), a 6-percent increase from 2003. This increase was buoyed by a robust construction sector of the U.S. economy. U.S. apparent consumption was 30.3 Mt (33.3 million st) in 2004, an in-crease from 2003. Imports were about 490 kt (540,000 st) in 2004, an 11-percent increase from 2003. Imports of silica are generally of two types. They include small-quantity shipments of very-high-purity silica or a few large shipments of lower grade silica that were shipped only under special circumstances (such as very low freight rates).

Jan 1, 2005

By W. X. Wang

In the mining and quarry industries, rock fragments are often transported by conveyor belt. To estimate the qualities of the rock fragments (i.e., size distribution and shape), an operator must take samples from the conveyor and manually perform a sieve analysis, which is time-consuming and tedious. Alternatively, an image-analysis system can be used to monitor the fragment quality on a fast moving conveyor belt. However, images of fragments on a fast moving belt vary to such a degree that the quality of any two successive images are not the same, and some of the images are of such poor quality that they are unrecognizable by human eyes. If poor-quality images are directly analyzed by a segmentation algorithm, the analysis will not be satisfactory. To resolve this problem, it is necessary to use an image-classification pro-gram for the automatic selection of fragment images with good quality. Because of this need, an image-classification program was developed and tested both in the laboratory and in the field. Testing of the system on different types of fragments showed that the system works reasonably well.

Jan 1, 1996

By H. Lyn Bourne

This is the sixth annual tabulation that gives mineral royalty information. This tabulation, like the previous editions, includes all of the earlier data plus more than 100 new entries. In addition to the royalty information, some entries show the cost of purchased reserves. An article in the December 1984 Kentucky Coal Journal could have far reaching applications. It explains that a banking firm examined the "reserve risk" as one of six factors for analysis when financing a coal project. The firm concluded that coal reserves in Kentucky are worth an average of $0.29/t ($0.26 per st) in-place. The banking firm based this in-place value on its examination of more than 50 leases. In-place value is especially important when trying to establish a mineral value for a given deposit. Ernie Lehman wrote to this author after last year's column appeared and he quoted the lease rates for lead and zinc on federal land. He states, from first hand information, that the leases are based on a percentage of net smelter return as follows: 4% for the first five years, 4.5% for the next five years, and 5% thereafter. The figures used in last year's column ($ per st) came from dividing reported royalty income by reported production. The information reported last year merely translates the results of the net smelter return (as written in the lease) to royalty income per ton to the US Government for the various years. Statistics from the Minerals Management Service of the Federal Government show that oil and gas account for 40% and 53%, respectively, of the Federal royalty income. Coal accounts for about 4% and all other minerals, the remaining 3%. Oil and gas leases are mostly at 12.5%. Most of the coal leases are at 12.5% for surface mining operations and 8% for underground mining. Many of the other commodities are leased at 5%, which has been true for decades. Relative to Federal leases, this year's table shows some percentages and some costs per ton. This was done to give information about the leases and also to show income produced by various commodities. Note that some commodities have a variation in $/ton even though the royalty percent is the same. These variations result from a combination of factors that influence the value of a mineral commodity. The same caveats that have appeared in previous columns relative to factors that influence the value of reserves are restated. The data in the table serve as a general reference and are not intended to present an absolute scale of reserves costs. Several factors influence the value of any mineral commodity. The factors include: • location/transportation (especially significant for most industrial minerals); • market conditions both for the commodity and the company acquiring the right to mine it; *quality or grade of the deposit as it reflects the amount of processing/beneficiation necessary to produce the finished product; and • legislative restrictions and conditions for mining a given material at a given site. These and other factors will significantly influence the cost of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity in column 1, and the subsequent columns give the location - either by state, US geographic area or Canadian province; the cost - R for royalty and P for purchased cost; and the year in which the lease or purchase agreement occurred. The last column offers either comments or gives a footnote number for more information. The cost column requires more explanation. The units may refer to cubic yards (/yd), cubic feet (/cu ft), tons (/T, 2000 lbs) or acres (/A). 1 cu yd = 0.7646 m3 1 cu ft = 0.2832 m3 1st=0.9078t 1 acre = 0.4047 hm or m2 In several cases, the royalty is a percentage of the sales price of the finished product and is levied against either the amount produced or the amount sold. We thank those who contributed information for the table: G. Anderson, B. Brown, R. Ganis, K. Hauser, E. Lehman, and S. Sims. Their help is appreciated as are the contributions by those who asked to remain anonymous. This column requires additional information each year. That data must come from people in the minerals industry who have royalty information. What appears in the table is only a very small fraction of the cost information relative to the various commodities and the geographic areas for which there is royalty information. If you find this column of interest and possess information write the author at the address given in the author's box or call 313-462-0005.

Jan 7, 1988