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By Duluth Engineers' Club, Engineers' Club of Northern Minnesota

"Iron ore in Minnesota probably carries a heavier tax burden than any mineral in any other place in the world. The State Tax Commission, created in 1907, originated the system, and with the assistance of the School of Mines is constantly making such adjustments, changes and increases as appear necessary, in order to place mineral reserves on the assessment rolls at their true and full present taxable value. The ore bodies on the Mesabi are so well defined by drilling and underground devel¬opment that it is possible to estimate very exactly the volume on every forty acres of land taken as a unit. This is done by the operating or holding company and reported annually to the Tax Commission, Who check the estimates, having all data, and- proceed to fix the valuation for taxation purposes.The first step is to ascertain a general average selling price in open market, over a period of years ; then the total cost per ton (exclusive of royalty) to produce and market the ore. The difference between the average selling price and producing cost per ton is taken as the future full value per ton. This is then discounted at a rate of interest that represents the present and possible future worth of money, over a period of years that will be required to exhaust the ore body, giving the present full value per ton., Iron ore is taxed at 50 per cent of its full value, while other property is taxed at 33 1/3 per cent and 25 per cent."

Jan 1, 1920

By G. V. Campbell, O. T. Holdsworth, M. G. Nelson

A senior design project is required by all accredited mining engineering degree programs. Often referred to as the capstone of a student’s education, this project is expected to include all the important components of the preliminary economic assessment of a mineral prospect, including orebody modeling, grade and reserve estimation, selection of mining and processing methods, preliminary mine design, access and utilities, environmental compliance and reclamation, and financial analysis. Two of the authors (Campbell and Holdsworth) completed a senior project in 2021. They analyzed the Akie zinc deposit located in Canada. This paper summarizes the economic analysis portion of that project. The two primary objectives of this economic analysis were risk reduction and integration of economics and engineering. Addressing risk is important as risk is one of the primary concerns in mining investments. Risk reduction was the primary concern through the entirety of this economic analysis. Integration of financial analysis and engineering design was the first component of a risk reduction design. This allowed for financial and engineering design to be optimized in conjunction with one another. This produced benefits from both a financial and an engineering prospective. From a market, economic, and financial risk perspective, risk was reduced by forecasting multiple metal price scenarios, and then addressing the Akie project’s economic viability at each price point. Lastly, risk was address through consideration of nontraditional financing options. The project also sought to minimize financial and human capital risk, by proposing mutually beneficial cooperative social relationships and favorable work, schedules. Description of that work is not included in this paper.

Mar 2, 2022

By George H. Willis

In the second half of the nineteenth century, bimetallism progressively replaced by gold standard. After World War I and 1931-33 depression, gold mainly reserved for official international transactions and internal use restricted. Changes since 1971 have shrunk official international use of gold. International payments deficits and surpluses now financed by private and official credit, rarely by gold. Historical review covers evolution of: (1) internal and external private use, (2) internal official use, (3) external official use, (4) role in IMF and (5) use as unit of account.

Jan 1, 1978

By J. R. Evans

In order to patent an industrial mineral placer mining claim, it must incorporate an economic deposit. Each ten acre parcel is evaluated for its mineral -in -character nature. Nonmineral -in -character parcels cannot be patented. Economic concerns include: claim locations, dummy locators, common variety nature, "excess reserves," and environmental constraints. Also, geologic and mineralogic studies, sampling and testing procedures are vital. Mining, milling, processing cost, and taxes must be evaluated. Product marketability analysis is necessary before starting any cash flow or discounted cash flow study. Valid data is essential to evaluate an economic industrial mineral deposit.

Jan 1, 1997

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By J. M. Pachter

Property sales and acquisition are prominent features of today's coal industry. Before selling or buying a site, a company must know the property's economic net worth. Any evaluation of economic net worth would be inadequate if determinations of a property's environmental liabilities and costs were omitted. Short-term and long-term costs can result from liabilities related to reclamation, water treatment, subsidence, and hazardous waste disposal. A structured, interdisciplinary approach can aid in the delineation, summation, and scheduling of these costs and liabilities.

Jan 1, 1986

By J. M. Pachter

Property sales and acquisition are prominent features of today's coal industry. Before selling or buying a site, a company must know the property's economic net worth. Any evaluation of economic net worth would be inadequate if determinations of a property's environmental liabilities and costs were omitted. Short-and long-term costs can result from liabilities related to reclamation, water treatment, subsidence, and hazardous waste disposal. A structured, interdisciplinary approach can aid in the delineation, summation, and scheduling of these costs and liabilities.

Jan 1, 1987

By Daniel T. Eyde

The U.S. Geological Survey (USGS) estimates world production of natural zeolites to be 2.7 Mt (3 million st) in 2013. China ranked ?rst with 2 Mt (2.2 million st), followed by the Republic of Korea at 230 kt (253,000 st) and Turkey at 50 kt (55,000 st). Japan?s production is reported to have increased as a result of zeolites, reportedly low grade local mordenites, being used to treat the low-level radioactive contaminants in the areas surrounding the damaged reactors at the Fukushima Daiichi power plant. China and other countries? high-volume, low-value construction applications, which include dimension stone, pozzolans and lightweight aggregate, are also included in production. This means the production data does not accurately indicate the quantities used in high-value added specialty applications. Consumption in the United States, according to USGS estimates, increased slightly, to an estimated 71.3 kt (78,400 st). Domestic uses for natural zeolites were, in decreasing order by tonnage, animal feed, pet litter, cement (primarily down-hole cement applications by the drilling industry), water purification, odor control, waste water cleanup, fungicide or pesticide carrier, gas absorbent, fertilizer carrier, oil absorbent, desiccant, catalyst and aquaculture. The six leading uses accounted for more than 70 percent of the domestic natural zeolite sales tonnage.

Editor?s note: Each year, the June issue of Mining Engineering features an industrial minerals review. Several people put in a fair amount of time in developing the material for this issue, all the while doing their own jobs. Thank you to the industrial minerals annual review editor, to the Industrial Minerals and Aggregates Division technical committee chair and vice-chairs, and to the authors of the individual commodity profiles. Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor. Candace Trimble, member SME, of Oil-Dri Corporation of America, is chair of the Industrial Minerals and Aggregates Division?s Technical Committee.

Jan 1, 2012

By Roy A. Grancher

HAPPY BIRTHDAY Not only is 1971 the Centennial Year of the AIME, but it also marks the One Hundredth Anniversary of the United States Portland Cement Industry. On September 26th in 1871 David O. Saylor of Allentown, Pennsylvania, received his patent Numbered 119,413 for the manufacture of portland cement. "Cement" had been used in the United States before that. This was, however, natural cement - a direct product of rocks as found in nature, usually burned at low temperatures in open kilns. During the early 1800s this natural cement played an important role in such projects as the building of the Erie Canal. It was only after the Civil War that small amounts of high priced portland cement was imported from Europe. The successful use of this material in construction led to Saylor's experiments and subsequent patent for the manufacture of a scientifically controlled product in this country. These one hundred years have witnessed four major "ages" of cement . . . three of them occurring in the last quarter century since World War Two. The first age was the "Age of Development", a seventy-year period which saw the growth of cement and its concrete end uses as major construction materials. Next followed a period called the "Age of Demand" when, after the war, cement became in short supply relative to large building requirements. In effect a cement shortage existed. The decade of the Sixties proved to be the "Age of Reaction", with its courses of action coming in response to the problems that arose when the industry's expansion programs provided too much capacity. Today cement, and the concrete industries, find themselves entering the "Age of Reason". Overcapacity, low price, rising costs, and poor returns are several of the reasons behind that name, As these industries face the construction challenge of the Seventies, and beyond, the application of basic management principles (otherwise known

Jan 1, 1971

By B. G. Kelley

The MIDREX® Direct Reduction Process was developed during the 1960s by the Midland-Ross Corporation, which had pioneered shaft furnace technology and stoichiometric gas reforming for use in processing minerals. In 1969, the first MIDREX® Direct Reduction Plant was built in Portland, OR. Since then, 49 additional modules have been sold in 18 countries. For the last ten years, over 60 percent of the world's direct reduced iron has been produced in MIDREX Plants. During the quarter century since commercialization, many technical improvements have been made, including larger shaft furnaces, in-situ reforming, greater heat recovery, improved catalysts, and hot briquetting. Midrex continues to enhance the technology in the areas of economy-of-scale, energy efficiency, alternate fuels, and raw material flexibility.

Jan 1, 1998

By Ralbern H. Murray

Typical First Year Selling Price Strip Mined Western Sub-Bituminous Coal Based [Fixed Capital (1) $600 MM Construction Loan Interest $100 Working Capital $ 30 Start-up Costs $ 30 Total Capital Requirement $760 MM Annual Costs (First Year) $M/Year Coal (2) 443,550 Operating Costs(3) 53,000 Depreciation(4) 36,500 Interest(5) 45,220 After Tax Profit(6) 34, 200 Federal Income Tax (48% Rate) 31, 570 Gross Revenue Required 245,040 (Less) By-Product Sales (18, 000) Net Revenue Required 227, 040]

Jan 1, 1975

By LeRoy D. Loy

To facilitate effective land reclamation and comply with existing state regulations, surface coal mine operators have in recent years adopted new mining techniques and equipment utilization for steep-terrain mining. In contrast to direct spoiling with draglines or shovels, these new mining methods require some form of overburden haulage from the excavation face to the point of reclamation. Although current mining methodologies such as Block-Cut, Modified Block-Cut, and Mountaintop Removal with Head-of-Hollow Fills have proven effective in achieving reclamation objectives, some production problems have resulted from pit congestion and excessive equipment delays. Recognizing this problem, the United States Bureau of Mines contracted Skelly and Loy to design innovative mining concepts utilizing conveyor haulage in place of trucks, loaders, dozers and scrapers. Project objectives required definition of current bottlenecks and development of mining systems to: alleviate bottlenecks; increase production potential; facilitate additional resource recovery; enhance reclamation; reduce safety hazards; and improve mining economics. Successful completion of project goals within a four year program involves systematic implementation of the following separate work phases: 1) Develop Concepts for Block-Cut Mining Systems; 2) Determine the Economic and Technical Feasibility of Concepts; 3) Prepare Detailed Design and Specifications of Concepts; and 4) Prepare Specifications for Conducting Field Tests of the Most Promising Concepts. At the time of this publication, Phases 1 and 2 are finalized with Phase 3 efforts well underway.

Jan 1, 1977

By R. L. Virta

Four companies mined ball call in four states in 2009, H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Kentucky-Tennessee Clay Co. (owned by Imerys Group), Old Hickory Clay Co. and Unimin Corp. Production, on the basis of preliminary data, was 820 kt (904,000 st) with an estimated value of $39.4 million. That was a 15-percent decrease in tonnage from 967 Mt (1.1 mil-lion st) with a value of $44.3 million that was produced in 2008. Tennessee was the top producing state with 59 percent of domestic production, followed by Texas, Mississippi and Kentucky. About 71 percent of production was airfloat, 18 perc

Jun 1, 2010

By Bruce W. Cavender

In an effort to lower production costs and improve profitability, mining companies have adopted a variety of management practices emphasizing productivity and cost containment. One set of practices that has been used successfully in the manufacturing and electronics industries is "world-class manufacturing" (WCM). It is applicable to mining as well. World-class manufacturing is based on the twin concepts of "just-in-time" inventory practices and total quality control. A few mining companies have implemented quality control programs that are similar to WCM in some ways and substantially different in others. This article considers the use of WCM in the processing environment, although the techniques are applicable throughout a mining operation. The article is also mindful of the variety of customers to whom mineral products are sold. Industrial minerals producers may sell brand-name products to specific customers with exacting requirements, while metals producers often sell their fungible output on a faceless commodity market. Customer requirements are emphasized in WCM, and so the range of these requirements must be recognized. World-class manufacturing In any milling process, specific goals are set for product and process characteristics - concentrate grades, minimum daily throughput, moisture content, etc. WCM has two overriding objectives: the reduction of deviation from these standards, and the reduction of variability in all aspects of the process and product. By definition, reduction of deviation also includes minimizing plant downtime for repairs or process changes. WCM plants use just-in-time inventory practices and total quality control. WCM plants use these techniques to simultaneously improve productivity and reduce costs.

Jan 1, 1993

By George A. Roche

Since our firm was established by Mr. Price in 1937, we have followed an investment philosophy which is based on the belief that investment in growth stocks is the most assured way of achieving superior, long term investment accomplishment. There are many criteria that we use to select growth companies but the most important is a combination of superior management operating in an industry with above average growth potential. This growth stock approach is the cornerstone of our investment strategy for two of the three mutual funds sponsored by the Price organization and for our private clients. However, during the past 5 years we have seen inflation accelerate due to a variety of factors including the inability of our government to meet seemingly unlimited needs with limited revenue sources. While there might be temporary periods of price stability, we believe that inflation will still continue to be the investor's greatest problem in future years. Our conviction that inflation would increase combined with the acceleration of inflation in the late 1960s stimulated an intensive investment research effort, on our part, to identify those companies with strong natural resource bases -- who own or control large, secure, and low cost tangible assets. Over the longer term and in an environment of a depreciating dollar some of these firms should be able to develop and sell these assets at higher prices. While we still believe that investing in growth companies is a sound investment strategy to offset inflation, we also believe that certain natural resource companies will show well above average investment performance. In the newest Price mutual fund, The Rowe Price New Era Fund, we have, as a matter of policy, placed a large portion of the portfolio in natural resource companies.

Jan 1, 1972

By E. Lee Bray

"Editor’s note: The editors thank those who make this annual issue possible. A special thank you goes out to the Industrial Minerals Annual Review editor, to the Industrial Minerals & Aggregates Division Technical Committee chair and vice chairs, and to the authors of the individual commodity profiles.Jim Norman, member SME, of Tetra Tech Geo, is the industrial minerals annual review editor. Edgar Blanco, member SME, of Freeport- McMoRan, is chair of the Industrial Minerals &Aggregates Division’s Technical Committee.The technical committee vice chairs include:• NickTushar Gupta and Sallie Gaillard, of the USGS, members SME, agricultural materials.• Abhishek Choudhuryand Xihui Yin, members SME, of Montana Tech and Kemira, repectively, ceramic and refractory materials.• Bobbi Strange and Riddhika Jain, members SME, of Outotec, Martin Marietta and Outotec, respectively, chemical raw materials.• Snehamoy Chatterjee, Alyssa Kendir and Alind Chandra, members SME, of BMT, Universityof Kentucky and Michigan Tech, respectively,construction aggregates.• Subham Verma, Gauran Soni and Freddy Sime, members SME, fillers and pigments.• Kaiwu Huang, Thomas Hilderbrand and Ricardo Santander members SME, of Virginia Tech, Thiele Kaolin and Carbo Ceramics, respectively, sorbents, filters and process aids.• Rhaghay Dubey and William Rapier, members SME, of Outotec and a consultant, respectively, specialty minerals.On behalf of ME readers, the editors thankTwo U.S. alumina refineries produced an estimated 1.5 Mt (1.65 million st) of alumina from imported bauxite in the United States in 2018. The 500-kt/a (550,000-stpy) refinery in Burnside, LA, owned by Almatis Inc. produced specialty alumina used in the abrasives, ceramics, chemical and refractory industries. The 1.2-Mt/a (1.32 million-stpy) refinery in Gramercy, LA, owned by Noranda Alumina LLC produced alumina mostly for use in aluminum smelters but also produced specialty alumina. An upgrade project at the Gramercy refinery to convert 200 kt/a (220,000 stpy) of capacity to produce more profitable specialty alumina was completed in the first half of 2018, and another project to increase capacity was started but a completion schedule was not available. The amount of new capacity was not disclosed, but it would be used to produce nonmetallurgical grade alumina. The 2.3-Mt/a (2.5 million-stpy) refinery in Point Comfort, TX, which was temporarily shut down in March 2016, remained closed throughout the year."

Jul 1, 2019

Editor?s note: Each year, Mining Engineering features an industrial minerals review. Several people put in a fair amount of time in developing the material for this issue, all the while doing their own jobs. Thank you to the industrial minerals annual review editor, to the Industrial Minerals and Aggregates Division technical committee chair and vice-chairs, and to the authors of the individual commodity profiles. Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor. Rajesh Raitani, member SME, of Cytec Industries Inc., is chair of the Industrial Minerals and Aggregates Division?s Technical Committee. The technical Committee vice chairs include: ? Vishal Gupta, member SME, of FlSmidth, Agricultural Materials. ? Candace Trimble, member SME, of Oil- Dri Corporation of America, and Bradley Van Gosen, of the U.S. Geological Survey, ceramics and refractory materials. ? Stanley Krukowski, member SME, of the Oklahoma Geological Survey, chemical raw materials. ? Russell Winn, member SME, of R.E. James Gravel Co., chemical raw materials. ? Justin Zdunczyk, member SME, of Plum Creek, construction materials. ? Jerry Gauntt, member SME, of Golder Associates, fillers and pigments. ? Michael Cheshire, member SME, of Los Alamos National Laboratory, sorbents, filters and process aids. ? Rajesh Raitani, member SME, of Cytec, Industries Inc., specialty minerals. Their help makes possible this June industrial minerals issue. On behalf of ME readers, the editors thank them.

Jul 1, 2013

"Editor’s note: Each year, Mining Engineering features an industrial minerals review. Several people put in a fair amount of time in developing the material for this issue, all the while doing their own jobs. Thank you to the industrial minerals annual review editor, to the Industrial Minerals and Aggregates Division technical committee chair and vice chairs, and to the authors of the individual commodity profiles.Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor.Vishal Gupta, member SME, of EP Minerals LLC, is chair of the Industrial Minerals &Aggregates Division’s Technical Committee.The technical committee vice chairs include:• Vishal Gupta, member SME, of EP Minerals LLC, Agricultural Materials.• Joe Garska, member SME, of Imerys, ceramics and refractory materials.• Stanley Krukowski, member SME, of the Oklahoma Geological Survey, chemical raw materials.• Russell Winn, member SME, of R.E. Janes Gravel Co., chemical raw materials.• Justin Zdunczyk, member SME, of Pike Industries, construction aggregates.• Jerry Gauntt, member SME, of Golder Associates, fillers and pigments.• Ebrhaim K. Tarshizi, member SME, of the Michigan Tech, sorbents, filters and process aids.• Daniel T. Eyde, member SME, of St. Cloud Mining, specialty minerals.Their help makes possible this July industrial minerals issue. On behalf of ME readers, the editors thank them.Virta, R.L. U.S. Geological Survey, National Minerals Information CenterFour companies - H.C. Spinks Clay Co., Inc., Imerys, Old Hickory Clay Co., and Unimin Corp. - mined ball clay in four states in 2013. On the basis of preliminary data, production was 1 Mt (1.1 million st) with an estimated value of $47 million. Production increased by 3 percent in tonnage from 973 kt (1.1 million st) with a value of $45.1 million in 2012. Tennessee was the leading producer state accounting for 64 percent of domestic production, followed by Texas, Mississippi and Kentucky. About 67 percent of total ball clay production was airfloat, 22 percent was crude or shredded and 11 percent was water-slurried.ConsumptionIn 2013, domestic ball clay producers sold clays to the following markets: ceramic floor and wall tile (44 percent); exports (21 percent); sanitaryware (18 percent); miscellaneous ceramics (9 percent); fillers, extenders, and binders, and unspecified uses (4 percent each), based on 2012 end use patterns and current markets. Other markets accounted for less than 1 percent of the remaining ball clay sales or use. Sales reported for the manufacture of fiberglass or most filler, extender, and binder applications were likely to have been mainly kaolin mined or purchased by the ball clay producers.PricesThe average value of domestically produced ball clay was approximately $47/t ($43/st) in 2013 compared with $46/t ($42/st) in 2012, on the basis of a preliminary survey of domestic ball clay producers. The unit values of exported and imported ball clay were $126/t ($114/ st) and $373/t ($338/st), respectively, in 2013, compared with $62/t ($56/st) and $314/t ($285/st), respectively, in 2012. Unit values for most large export shipments increased in 2013, and a larger number of low-tonnage, high-value export shipments were shipped in 2013 than in 2012, resulting in a doubling of the average export value. Two low-tonnage, high-value shipments in 2013 accounted for the increased value of imports."

Jan 1, 2014

By R. L. Virta

Ball Clay -- Four companies - H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Imerys Group (formerly Kentucky-Tennessee Clay Co.), Old Hickory Clay Co. and Unimin Corp. - mined ball clay in four states during 2010. Production, based on preliminary data, was 910 kt (1.11 million st) with an estimated value of $42.9 million. That was a 10-percent increase in tonnage from 831 kt (916 million st) with a value of $37.7 million that was produced in 2009. Tennessee was the leading producer state with 61 percent of domestic production. It was followed by Texas, Mississippi and Kentucky. About 70 percent of production was airfloat, 20 percent was crude and 10 percent was water-slurried.

Jan 1, 2011