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By R. D. Brown

"Finance Minister Donald Macdonald's budget of May 25, 1976 featured a restructuring of the anti-inflation profit controls and a grab bag of tax changes, some of direct interest to the mining industry. All Canadian taxpayers now will be permitted to write off immediately 100% of mineral and oil and gas exploration expenses included after• May 25, 1976 and before July 1 1979. The cost of acquitting Canadian resource property after May 6, 197.4 from a federal or provincial government will now clearly be included in Canadian development expense, and provincial drilling and exploration incentives received after May 25, 1976 will not reduce exploration and development expense for federal income tax purposes. Under tough new anti-inflation profit controls, all controlled businesses, except distributions, will essentially have one uniform set of rules for• determining allowable profit margins; this allowable margin will be determined by product line or by over-all net margin and will be 85% of the higher of the margin obtained in the five years preceding October• 13, 1975 or the one year preceding May 1, 1976. The basic capital cost allowance system is to continue, but many rates will be revised. The ability to offset losses created through claiming capital cost allowances on leased equipment, etc. against other income will be ended with respect to transactions entered into a/te1• budget night. Miscellaneous other tax changes will raise the low rate base for Canadian-controlled private corporations to $750,000 increase retitement plan contribution limits and reduce the rate of branch tax imposed on branches of corporations resident in a country with which Canada has a comprehensive tax treaty to equal the withholding tax rate on dividends under that treaty."

Jan 1, 1976

Jan 7, 1976

By R. D. Brown

In his March 31, 1977 budget, Finance Minister Macdonald has attempted the delicate balancing act of stimulating the economy without reinforcing the inflationary pressures which Canada is continuing to experience. Several tax changes of benefit to the mining industry, as well as measures designed to encourage oil exploration in frontier areas, are among the budget proposals. Additional earned depletion of 66- 2 /3 %, which may be offset against income from any source, will be available on drilling costs in excess of $5 million incurred between March 31, 1977 and April 1, 1980 in connection with an exploratory well in Canada, including the continental shelf . Other changes include more favourable treatment of resource property dispositions, less restrictive rules r elating to "successor corporations" , increased capital-cost allowance on railway spur lines, the inclusion of certain production royalties in Canadian development expenses and the application of the lower "manufacturing and processing" tax rate to sulphur production. To encourage business capital spending, the 5% federal investment tax credit it to be extended an additional three years to mid 1980 and broadened to include spending on scientific research and development. The rate of credit will also be selectively increased on a regional basis, to 7.5 % in certain designated areas in Saskatchewan, Manitoba. Northern. Ontario and Quebec, and to 10% in the Atlantic provinces and the Gaspe.

Jan 1, 1977

By R. D. Brown

In the spring of 1977, Revenue Canada announced its intention to proceed in 1978 with a plan to impute a taxable benefit on interest-free and low-interest loans provided to employees. Such loan arrangements are often an important aspect of the compensation packages provided by many companies to their employees. Since the original announcement, there have been many submissions to Revenue Canada opposing this change, and the Finance Minister has now brought down a compromise solution with the introduction of a proposed amendment to the Income Tax Act. The amendment, which would not take effect until the 1979 taxation year, would require an employee, a shareholder or a related person to include a benefit in income measured as the difference between the interest on any such loan computed at bank prime rate and any interest actually paid. Only the amount of such a benefit in excess of $500 in a particular year would be required to be included in income. Of particular interest is the exclusion from these benefit rules of loans up to $50,000 in respect of the purchase of a house on the relocation of an employee and loans provided for the purchase of shares of an employer corporation.

Jan 1, 1978

By R. D. Browns

In his Budget Speech on March 31, 1 977, the Honourable Donald S. Macdonald expressed concern about the financing of investments through new equity issues. He mentioned the need to render more attractive participation in the equity market by investors in all in come brackets. One of the measures introduced in the budget to accomplish this goal is the proposal to increase the dividend gross-up and tax credit in respect of most dividends received by an individual from Canadian companies. The following comments and tables serve to illustrate the impact of this particular proposal.

Jan 1, 1977

For the sixth year in a row, the value of nonfuel mineral raw materials produced in the United States set a new record, reaching almost $17 billion in 1977. Data provided by the Bureau of Mines show that the 1977 value of domestic nonfuel mineral production exceeded the 1976 value, $16.7 billion, by 2 percent. The $17 billion worth of minerals was the basis for approximately $770 bill ion worth of processed materials of mineral origin. Output of metals decreased $360 mil lion in 1977, while that of nonmetals increased $670 million. Of the 22 metals produced, output of 12 increased, and the value of 13 increased. Among the 46 nonmetallic minerals produced, the quantity of 27 increased, and the value of 34 increased.

Jan 1, 1978

For the US coal industry, 1978 was a nightmarish recurrence of 1977 as the United Mine Workers strike cut into production during the first three months of 1978, followed by the strike against the Norfolk and Western Railway during the summer and early autumn. Coking coal production was floored by the one-two punch of environmental constraints on US coke ovens and competition from low-cost, high-quality imports. At the same time, US ex orts of coal fell to their lowest level since 1962. And in the face of all of this, steam coal consumption was sluggish as utilities burned huge amounts of oil to conserve coal stockpiles during the UMW strike. This was followed by decreased electrical demands due to mild summer weather in many parts of the country and dramatically improved availability of hydroelectric power.

Jan 5, 1979

Uranium was the prima donna of 1978, and the exploration pace was fast and furious in traditional uranium producing areas such as the Powder River Basin, Grants mineral belt, San Juan Basin, and Uravan mineral belt. Adding fuel to the fire were several significant discoveries: The Date Creek Basin of western Arizona, the McDermitt caldera of northern Nevada, and Tallahassee Creek in Colorado's intermontane basin. Advances in solution mining haw resulted in deeper drilling on the Texas Coastal Plain, and the price of uranium has encouraged widespread exploration in frontier areas and non-sandstone environments.

Jan 5, 1979

Industrial minerals enjoyed a fairly successful year in 1978, despite the sluggish economy, inflation, and environmental restrictions. A glance at US Bureau of Mines statistics shows that, in general, production of industrial minerals increased from + 1% (salt) to as much as 26% (sulfur, other than Frasch or recovered). A few industrial minerals showed a decline; fluorspar production, for example, registered a 23% decrease in 1978 from 1977 due to the closing of three domestic mines. Bromine, natural sodium sulfate, Frasch sulfur, and vermiculite also had production decreases of 2-6% in 1978.

Jan 5, 1979

Escalating energy costs and tough environmental standards were two major factors affecting the minerals processing area in 1978 For the most part, new startups and research and development initiatives were directed toward improving process dynamics, investigating alternative processing strategy, and lowering unit costs. In the flotation area, the trend to larger machines continued. Scientific investigation of the modeling and process control of flotation was apparent, as was the research and development of new flotation reagents.

Jan 5, 1979

For the seventh consecutive year, the value of nonfuel mineral raw ma¬terials produced in the US set a new record, reaching almost $20 billion-up 12.7% from the previous year, according to the US Bureau of Mines. The Bureau reported that this mineral production was the basis for about $200 billion worth of processed materials of mineral origin.

Jan 5, 1979

The value of raw nonfuel mineral materials production totaled an estimated $19.7 billion in 1978. The record 1978 value exceeded by 13 percent the 1977 value of $17.5 billion. This raw mineral output was the basis for approximately $200 billion worth of processed materials of mineral origin. Output of both metals and nonmetals increased about $1 billion each, above comparable figures for 1977. Of the 22 metals produced quantitative output of 11 increased and the value of 13 increased. Among the 48 nonmetallic commodities produced, the quantities for 35 increased, and the values for 40 increased.

Jan 1, 1979

By Robert B. Parsons

"The budget that was tabled by Finance Minister MacEachen on November 12, 1981 will result in a major tax reform of Canada's income and sales tax systems, the likes of which have not been witnessed by taxpayers since 1971. All segments of the economy will be affected one way or another by the far-reaching budget proposals; the mining industry did not escape untouched.Important changes will be introduced which will alter some of the fundamentals of structuring mineral resource ventures in Canada. This month, Tax Notes examines these changes, and also summarizes the other highlights of this key federal budget.IntroductionFinance Minister MacEachen's budget, with its lower personal tax rates, loophole plugging and tax shelter bashing, represents the biggest shakeup in our tax system since tax reform in 1971. In his budget, presented in the House of Commons on November 12, Mr. MacEachen proposed substantially lower tax rates for middle and upper income individuals, with the top federal and provincial tax rate dropping to about 50%, but in return he eliminated most of the opportunities for individuals, and corporations, to reduce or defer taxes through a wide variety of tax shelter and tax planning mechanisms.Although many of those budget proposals that dealt with the resource industries focused on the implementation of the September 1, 1981 agreement reached by the federal and Alberta governments concerning the National Energy Program (see Tax Notes in the December 1981 issue of the Bulletin), the budget also contained some proposed amendments that would have significant implications for investment in the mining industry.This month, Tax Notes examines these latter proposals, and also summarizes very briefly those budget proposals which are not unique to the resource sector."

Jan 1, 1982

Houston T. Aars Carter Mining Co. Sundance Rt. Moorcroft, WY 82716 Charles R. Ahlbrecht Western States Surveying Inc. 7030 So. Yosernite Englewood, CO 801 12 Dean Albon Monsanto Co. 800 No. Lindberg St. Louis, MO 631 67 Robert Anderson Mobil Oil Producing Inc. POB 17772 Denver, CO 8021 7 Stephen P. Antony Orbital Engineering 6789 So. Yosernite Englewood, CO 801 12 David Ariotti Boyle Mining Engineering Service Rt. 1 Box 15M Helper. UT 84526 Douglas Auck Falkirk Mining Co. 103 McKinley Ave. Underwood, ND 58378 Roger Backrnan N. D. Crockett & Assoc. 3467 Sorenson Way Salt Lake City, UT 84109 Richard Bailey Continental Conveyor & Equip. Co. 602 Park Point Drive Golden, CO 80401 Earl W. Baker Baker & Co. 4965 Jackson St. Denver, CO 80216 Allen P. Barber San Juan Coal Co. 705 Ocio Farrnington, NM 87421 Edward Barker Process Equipment Builders POB 7506 Paducah, KY 42001 Larry Barton Carter Mining Co. 101 5 Teewinot Circle Gillette, WY 82716 Hugh Bastian American Carbide Corp. POB 2650 Ronald N. Batdorf Monsanto Co. Box 701 Saratoga, WY 82331 Georgetown, KY 40321 Doris A. Bauer Mobile Oil Corp. POB 17772 Denver, CO 80217 Jan Beam Blount International Ltd. 2570 So. Dayton Way #E-308 Denver, CO 80231 Mac Beaudry Falkirk Mining Co. 1029 Cannon Ln. Washburn, ND 58527 R. C. Beerbower Gates Engineering Co. Drawer A Beckley, WV 25801

Jan 1, 1982

[Mr. Houston T. Aars Carter Mining Co PO8 3007 Gillette, WY 82716 Mr. Jay Abbott Union Supply Co 7458 S Jackson St Littleton. CO 80122 Mr. Ronald H. Achziger Midwest Rbr & Sply Co 6404 E 39th Ave Denver, CO 80207 Mr. Randy Acre Dorchester Coal Co 9350 E Arapahoe Rd Englewood, CO 80112]

Jan 1, 1983

[Mr. Jay Abbott Union Sply Co 7458 S Jackson St Littleton. CO 80122 Mr. Ronald H. AchZlger Midwest Rbr 6 Sply Co 6404 E 39th Ave Denver, CO 80207 Mr. Randy Acre Dorchester Coal C 9350 E Arapahoe Rd Englewood, CO 80112 Mr. Dell H. Adams Kenerco Corp 5480 Swanton Dr Lexington, KY 4051 Mr. Robert S. Affleck Anderson Mavor (USA) Ltd RD #1 Box 140-Lake R Bradford Woods, PA 15015]

Jan 1, 1984

By Robert B. Parsons

"The customary onslaught of government budgets this spring offers lots of interesting reading to the mining industry.While the favourable changes tend to get all the fanfare, there are some ""sleepers"" in the host of proposed changes which will be bitter pills for some mining people to swallow.IntroductionOn a scale of one to ten, the Canadian mining industry will probably give this year's federal and provincial budgets a score that is pretty close to five. Although some budgetary proposals are generally perceived to be favourable to the industry, there are other provisions (and lack of provisions) which are considered to be negative.This month, Tax Notes examines in a summary manner the principal features of the 1985 federal and provincial budgets which are of particular interest to this country's mineral industry."

Jan 1, 1985

At the Annual Meeting of the RMCMI Board of Directors held June 29, 1985, the following amendments to the corporation bylaws Article III were made: Section 2. Advisory Board. There shall be an Advisory Board of Directors which shall be com- posed of all former presidents of the corporation and of the unincorporated association, also known as The Rocky Mountain Coal Mining Institute, of which the corporation is the successor. The Advisory Board shall periodically review the philosophy and policies of the corporation and make recommendations concerning the same to the Board of Directors. The Advisory Board shall hold an annual meeting at the same place as and immediately pre- ceding the annual meeting of the members in each year and written notice stating the place, day, and hour of the meeting shall be given or mailed to each member of the Advisory Board at least thirty days prior to the date fixed for such annual meeting. The annual meeting of the Advisory Board shall be for the purpose of electing a chairman from among its members and the person so elected chairman shall also serve as a member of the Board of Directors of the corporation. The Advisory Board shall meet at such other times and conduct its affairs in such a manner as it shall determine from time to time by resolution. Section 4. Regular Meetings. A regular meeting of the Board of Directors shall be held immediately following the annual meeting of the members, at the site of the annual meeting of the members, the day and time to be fixed by the Board of Directors at its annual meeting immediately pre- ceding the annual meeting of the members in each year, without the necessity of any other or advance notice. Such regular meeting of the Board of Directors shall be for the purpose of considering committee appointments, and for the transaction of such other business as may come before the meeting. A regular meeting of the Board of Directors shall also be held in the Fall of each year following the annual meeting of the members and written notice stating the place day and hour of the meeting shall be given or mailed each member of the Board of Directors at least thirty days prior to the date fixed for such regular meeting. Such Fall regular meeting of the Board of Directors shall be for the purpose of receiving the treasurer's annual financial report of the previous fiscal year as reviewed and approved by the auditor, to take action on the budget, and for the transaction of such other business as may come before the meeting. Section 8. Standing Committees. The Board of Directors may create by resolution adopted by a majority of the entire Board of Directors, a Bylaws and Resolutions Committee, a Nominating Committee, a Finance Committee, and one or more other committees each of which shall consist of two or more directors and which shall have and may exercise such authority in the management of the corporation as shall be provided in such resolution or in these bylaws. Section 9. Ad Hoc committees. The Board of Directors from time to time may by resolution create a Membership Committee, a Scholarship Committee, an Education Committee, various convention committees, and one or more other committees each of which shall consist of members of the corporation and which shall have and may exercise such authority, other than in connection with the management of the corporation, as the Board of Directors may determine. MINUTES of the Rocky Mountain Coal Mining Institute 81 st Member Annual Business Meeting July 2, 1985 The 81st Annual Business Meeting of the mem¬bers of The Rocky Mountain Coal Mining Institute was called to order by the president, Charles W. Margolf at 1:35 p.m. Tuesday, July 2, 1985 in the Windom Peak Room of the Tamarron Resort near Durango, Colorado. Thirty members were present and a quorum was established. It was moved by Bill Balaz, seconded and car¬ried to dispense with the reading of the minutes as these were published on pages 67 thru 77 of the 1984 issue of the Proceedings. The chair called for reports of the various com¬mittees and these reports will be placed on file in the RMCMI Office. Bylaws and Resolutions. Chairman Loren V. Linville reported that the Board of Directors had adopted changes to Article III, Sections 2, 4, 8 and 9 calling for clarification of Ad Hoc and Standing Committees as well as setting forth a purpose for the Advisory Board meetings and stating a time for an annual meeting. He further reported that the Board had passed three resolutions: (One) Noting the passing of these members since the last conven¬tion - Einar M. Arentzen, Gerhardt A. Benne¬witz, Claude P. Heiner, Raymond A. Johnson, Vard H. Johnson, P. T. Schonstrom, Augusta F. Whiteside and Edward Wiemann; (Two) Of appreciation to the officers, chairmen and their commit-

Jan 1, 1985

By D. G. Krige

In the world mining scene, precious metals (particularly gold) have recently monopolized the attention in exploration as well as new production activities. As the major world producer of gold, South Africa plays and will continue to play a very significant role in this commodity. This role will, of course, have its consequential effects on the world's gold supply and, hence, also on the international price of gold. It is essential, therefore, and in the interests of all gold producers that the likely future pattern of gold production in South Africa be estimated such that some measure of production uncertainties can be predicted. For this purpose, some elementary geostatistical models will be used, and the main factors affecting the situation will be analyzed in broad outline only under the following headings: South Africa's basic gold ore potential in the three categories of: (1) ore remaining in existing mines; (2) extensions to existing mines via unexplored areas and/or reef horizons of lower grade; and (3) new mines, potentially deep or ultradeep. Cutoff grades - operating, marginal, and flotation, for the foregoing three ore categories, respectively. The availability of production, financial, and other resources required. Cutoff grades will, of course, depend on cost levels (operating and capital), future inflation and cost escalation trends in South Africa (SA), and/or gold price trends (in US$ and via the exchange rate in SA Rand terms). The differentials in inflation and escalation trends with those in overseas countries, mainly the USA, will, in general, set the scene for future exchange rate levels of the Rand. To predict the effect of various cutoff grades on future gold production from South Africa, it is essential to use geostatistical models. The applicability of such models is tested against past records of price, cost, and grade trends and then applied to the estimated ore potentials. These models were referred to briefly in a paper at a recent seminar on gold (Krige, 1986) but are discussed in detail herein. This lecture was intended originally to cover only technical aspects, but, in view of South Africa's position internationally and the possible effect of sanctions, internal unrest, and strikes on gold production, a brief reference to the third factor above (availability of production, financial, and other resources) seems appropriate.

Jan 1, 1988

[ACC, Inc. Bucyrus-Erie Company CINCO (Coal Industry Consultants, Inc.) Coal Magazine Colowyo Coal Company Coors Ceramic Company Crane & Hoist Sales, Inc. Cummins Power. Inc. Cummins Southwest, Inc. Cyprus Coral Company Denver & Rio Grande Western Railroad Company Energy Fuels Corporation FMC Corp.- MHE Division Ford. Bacon & Davis Inc. T.J. Gundlach Machine Company Hemscheidt American Corp. GH Hensley Industries Honnen Equipment Company Jennmar Corporation Soy Technologies, Inc. K&P Sales Engineers, Inc. Kennametal, Inc. Kerr McGee Coal Corp. McLanahan Corporation National Mine Service Company Peabody coal Company Pitrsburg & Midway Coal Mining Co. Pyramid Parts, Div. American Alloy Ramsey Technology. Inc. Roberts & Schaefer Company Santa Fe Pacific Coal Corporation Scandura. Inc. Tamarron Resort TIC (The Industrial Company) Tribol Utah Power & Light Western Energy Company]

Jan 1, 1988