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By R. Addison

This is the story of the Carlton Mill. But first-a little geography. For those who do not know where the Carlton Mill is, or, perhaps, have only a vague idea, its location is indicated in Figure 1. The plant is situated on the road between the two old mining towns of Cripple Creek and Victor, 10 the west of Colorado Springs. From Denver, it's about 110 miles by road. The story of the Carlton Mill began with the discovery of gold at Cripple Creek in 1890. This discovery set off a major boom such that, by the turn of the century, there were 450 separate operating mines in the district. Gold production boomed early and declined rather rapidly as indicated by the graph in Figure 2. Significant factors affecting production are shown on the graph-the raising of the gold price in 1934 from $20.67 to $35.00 per ounce and the government executive order L-208 in 1942 requiring the closure of all gold mines.

Jan 1, 1983

By Samuel Canchanya M.

El presente trabajo describe la mineralogía y génesis de los depósitos de cobre, plomo, plata y zinc de la mina Bella Unión ubicada en Hualcayoc, Cajamarca. En este sentido, la geología de dicho yacimiento presenta vetas como mantos. Así también se plantea la existencia de cuerpos estratoligados sin genéticos que se desarrollan en horizontes calcáreos albianos y coetáneos con los yacimientos en rocas volcánicas y dentro del lado oeste de los lados peruanos.

Nov 8, 1982

By Paul D. Tomlingson

Maintenance costs in the mining industry often account for as much as 18-20% of total operating costs and with the cost of labor and materials rising, they threaten to become an even larger percentage of the total. Yet, without an effective maintenance program costs can soar beyond what they would be without a program. In other words, when production equipment is down, there is no production and no product to sell in the marketplace. This cost of downtime in lost product far exceeds the actual cost of maintenance, which is defined here as labor and materials. Thus, mine management must have an effective maintenance program to avoid downtime and meet production targets. Attaining an Effective Maintenance Program Many mine management and operations supervisors believe that an effective program is a function of how hard they push maintenance. Yet, when vital production equipment is inoperable and production is lagging, no amount of pushing helps. In actuality, maintenance has little control over its own destiny and needs support from other departments to deliver good service. Success of the maintenance program depends on gaining control of those factors that directly influence maintenance. Consider the following. Organization-The maintenance organization must be structured for maximum responsiveness to production needs. Unfortunately, some needs are immediate and many are unknown in advance. The maintenance department has little control over them. These outside influences limit the department manager's ability to control his own organizational structure. Preventive maintenance procedures-Routine lubrication, equipment inspection, minor adjustments and the like are controlled mostly by maintenance. Yet, scheduling preventive maintenance depends also on the availability of equipment controlled by other departments. Planning-The purpose of planning maintenance jobs is to ensure that the best use is made of maintenance resources. If the production department creates an environment of running repairs and emergencies, there can be little planning. Even well-planned jobs will suffer if there is less than full cooperation in carrying them out. As a consequence, the maintenance department is not blocked from planning, but the value of its planning is reduced. Scheduling-Maintenance scheduling should be a joint effort. Although maintenance does the planning, production must agree to the scheduled maintenance of its equipment. Workload-As a service organization, the maintenance department has limited control over its workload because it must consistently respond to other department's demands. At best, maintenance controls only the fixed portion of its workload-utility work, janitorial service, maintenance shop work, and assigned repetitive and preventive maintenance duties. Unscheduled and emergency work are initiated by operations. Major maintenance actions require full cooperation. Labor productivity-The effective use of labor is tied to other key functions of maintenance. These include organization, preventive maintenance, planning, scheduling, and emergency work. An area type organization, for example, can often respond more quickly to immediate needs than a centrally controlled maintenance group. Yet, area maintenance can result in lower labor productivity unless tight control is exercised. One of the advantages of a good "detection-oriented" preventive maintenance program is early discovery of problems and better opportunity to schedule corrective work in advance. Under planned work conditions, use of labor can be more productive. Complete planning and scheduling can minimize time spent on each job, increase effectiveness of supervision, and improve labor productivity. Finally, if emergency work is minimized, there are fewer delays, less lost time, better coordination, and more productive use of labor. While labor productivity is an important factor in carrying out maintenance, it also is influenced by outside factors. However, few realize the impact of being able to improve maintenance productivity. By improving the productivity of 30 men from 30% to 40%, maintenance could accomplish the same work value as if it had added 7.5 men working at 40% productivity. 30 (1800) (40%) = 21,600 man-hr/yr 30 (1800) (30%) = 16,200 man-hr/yr Difference = 5,400 man-hr/yr 1800 (40%) 7.5 men Leadership-The maintenance department can have significant control over its own leaders, the front-line foremen, but they must

Jan 12, 1982

By Raymond E. Blair

Introduction Mining and minerals transportation spans the distance from the pit face and mine wall to the consumer. This transportation can be as simple as coal transfer from the mine and preparation plant by conveyor to a mine mouth electric generating plant. Or it can be as complex as copper ore transportation: concentrated, smelted, refined; drawn into wire and insulated; and cut into reels and transported to local industrial supply houses. The route of aluminum from the bauxite pits to the supermarket shelf in the form of household food wrap is another example of the potential complexity of minerals transportation. For perspective, however, mine to market minerals transportation can be split into three components: materials handling, transportation, and distribution. It should also be recognized that each mineral, market, producer, and consumer has unique transportation characteristics regarding costs, transportation mode, and alternatives in the transportation scheme. Some obvious considerations are the number of producers and consumers, the number of markets and customers the mineral serves. Concerning the latter, are you selling a million tons to one customer or a ton each to a million customers? Transportation volume About the only generalization that can be made about minerals transportation concerns the large volume of materials involved. No other industry compares to the mining and minerals industry in its huge movement of product in the crude, semi-processed, processed, fabricated, and converted states, as shown by the accompanying table of US mineral production. Whether it is crushed stone or sand and gravel moving by truck to a local market from local producers, or coal moving by 9.07 kt (10,000 st) unit trains from a mine to a power plant, or iron ore moving by lake vessel from the upper lake ports to the lower lake steel mills, mineral transportation volumes are huge. The nature of production and consumption affects the transportation mode. More than 60% of the coal moves by rail. The majority of iron ore moves by lake vessel. Ninety per cent of the sand and gravel and more than 80% of crushed stone moves by truck. Factors Affecting Minerals Transportation Some would define minerals transportation as the cost and route to move a mineral product from the first point of sale to the first point of consumption. This definition does not recognize that there can be many

Jan 10, 1982

By William L. Young

There is an old saying in Canada: "Mines are made as much as discovered." What follows is Young's perception of his experience developing and financing the Cochrane Hill gold mine project. In 1974, I came back from rutile and zircon exploration and mining in Australia. I became interested in a copper, lead, and zinc project in the Bathurst District, New Brunswick. Much field work had already been done but I was convinced that a reinterpretation of the geophysical work left room to enlarge on the known mineralization. So, with my own money I put a property deal together, found an underwriter willing to raise $100,000, and had a lawyer produce a prospectus. The prospectus was ultimately accepted for filing by the Ontario Securities Commission and I acquired funding and began work. It did not take many drill holes to determine that the interpretation was not geologically valid. However, while drilling was going on, geophysical and geochemical explorations indicated interesting anomalous zones elsewhere on the property. But by now the base metal market climate had soured and the $50,000 I had left was not enough to evaluate the new results. So I decided to farm out the property. A data folio was produced and the property was optioned to a major mining company, with Northumberland Mines Ltd. retaining a 20% free, carried interest. By 1976, the market for junior issues was so bad no under¬writer would even talk to a geologist and I still had the $50,000 in the bank and was looking for something to initiate. A Project That Went Nowhere Market research indicated that the Toronto area imported fine calcium carbonate fillers from Georgia, Alabama, and Vermont. I was aware of the specs and the fact that there is a large marble belt in Eastern Ontario. After some prospecting, I found an interesting deposit. The product was slightly high in silica and low on brightness. Research work eliminated the silica and corrected the brightness. So, with insufficient money we launched a feasibility study. This included diamond drilling, bulk sampling, special fine grinding and air classification tests, and an in-depth market survey. Our product was as good or better than those on the market. Our advantage was that delivery could be made by a two-hour truck haul to the customer. The present system of rail delivery had many problems, especially in winter. Despite everything looking rosy, we ran into a stone wall. The underwriters were singularly unimpressed because the public saw little glamour in a substance most people had never heard of. The issue would have been difficult-if not impossible-to sell. Banks and government agencies took the position that if we could get long term take-or-pay contracts then they would lend the required capital. None of the suppliers, however, would even consider a contract until production had begun and they could evaluate the production material. It was a classic "catch 22" situation. I have gone into this in some detail to show how tough the industrial mineral market can be. We eventually optioned this calcium carbonate property to a major corporation. The option agreement would give us a free, carried 15% and the right to buy up to 40% for contributing 25% of the production costs. But the experience left my company in poor financial shape. To survive, I think the entrepreneur-geologist must always have at least one project in reserve, an emergency plan. I had been searching out a new project to work on, after the calcium carbonate option was wrapped up. It was gold. Gold intrigued me and I knew quite a bit about Nova Scotian gold. I felt that with any rise in price, many of the former high-grade gold mines would have interesting potential for the larger, low grade portions of the deposits. That is how I happened on Cochrane Hill, where much work had been done in the early 1970s when gold as $4.82/g ($150/ oz). This time my timing was good. No sooner had Northumberland signed an option agreement than gold prices started to rise. In six months, they went to $27.331g ($850/oz). Even so, financing gold prospects in early 1980 was still not easy. It had been years since gold financing had been undertaken. A whole new generation of investors, with no knowledge of gold mining, had grown up. So, with accounting and legal council, we decided on a semiprivate "seed money" offering. Under the new Ontario Securities Act, this was a new-and partly tax sheltered-concept. At the time, it was very innovative.

Jan 6, 1982

By Paul R. Smith

The Colorado School of Mines Research Institute (CSMRI) was founded in 1949 to fill mining industry and government needs for minerals research and development. The operations of scores of mines, mills, and plants around the world are based on the results of work done by the Research Institute. Among other things, the Research Institute conducts studies in geology, mine planning, mineralogy, size reduction, minerals processing, and hydrometallurgical techniques in extractive metallurgy. Many CSMRI projects also involve energy and environmental considerations. What follows is a summary of some of the studies in which the Research Institute has been and is currently involved, as well as some comments on trends and developments in the industry.

Jan 2, 1982

By Jorge Lema Patino

"The purpose of this paper is to determine the best techno-economic alternative for the treatment of tin ores, when comparing the various mining and metallurgical methods of preconcentration, concentration, volatilization (fuming) and up to the final stage of selling to the smelter. The study of the influence of the different parameters of cost, recovery and quoted prices has motivated the paper, which aims at determining the best process of ore treatment in terms of its techno-economic feasibility.Method of WorkOn the basis of head grades of 0.5, 0.75 and 1.0% tin, the following alternative methods of treatment are possible:1. Mining-Concentration-Smelting.2. Mining-Preconcentration-Fuming-Smelting.3. Mining-Concentration-Separation, with direct smelting and fuming/smelting of the two fractions produced.The calculations were carried out on the basis of existing information and publications concerning the various experimental recoveries in the operating mills of COMIBOL. In the case of concentrates containing less than 10% or more than 40% tin, extrapolation was required.The final grade of the tin concentrates and the gross weight of the concentrate were calculated on the basis of the estimated recovery curves. The costs of the preconcentration and the concentration stage s were determined per gross metric ton of material treated.The calculation of the cost of the smelting stage is similar for all the alternatives, the royalties and smelting charge varying with the grade of the final concentrate. In the fuming stage, a uniform recovery of 90% was taken in all cases so as to obtain a final concentrate grade of 65% tin, regardless of the head grade of the feed material.For the separation stage, the following considerations apply:a) Separation can be carried out by gravity separation or flotation methods.b) The cost of separation varies depending on the system used.c) The distribution of tin in the two fractions is 100% at this stage. In other words, there is no loss of tin during separation."

Jan 1, 1982

This report describes the results of a program to design, procure, install, and evaluate a multi-channel underground telephone system of modern design in the Sunshine Silver Mine near Wallace, Idaho. Although the evaluation portion of the program was deleted, this report contains a cost benefit analysis for such a system using estimates of operational data for the Sunshine Mine. The results show a centrally switched telephone system of conventional design with ruggedized phone enclosures and special environmentally sealed dial pads to be the most economical.

Jan 1, 1982

By Robin B. McCulloch

No producing mines are in the study area. Sample results indicate the only resources in the study area are low grade phosphate deposits associated with Cuyama Phosphate Mine (fig. 1). Within the study area, are more than 21.4 million tons of inferred subeconomic phosphate rock resources which would be reserves at an 80 percent higher phosphoric acid price; weighted average grade is 4.84 percent phosphorous pentoxide (P205). About 17.6 million tons of similar grade are outside the area to the northwest. The South Cuyama Oil Field, adjacent to the study area (fig. 1), produces petroleum from the Vaqueros Formation which underlies parts of the study area. Oil and gas potential was evaluated by U.S. Geological Survey. INTRODUCTION Location, Size, and Geographic Setting The U.S. Bureau of Mines conducted a mineral survey of the Fox Mountain RARE II area (No. 5120) during the summer of 1981. The area was examined to determine the presence or absence of mineral resources and reserves, and to estimate tonnage and grade where possible.

Jan 1, 1982

By Henrique Garcia Pereira

In a large scale mining project, the global feasibility study must take into account the interdependence of three sub systems: the geological subsystem, represented by the orebody model; the technological subsystem, consisting .of mining and ore dressing models; and the economic subsystem, including the selling price of final product, production costs and investments. In cases where the ore is heterogeneous, the interdependence between geological and technological subsystems may be assessed by a Data Analysis technique such as Correspondence Analysis (CA). This technique was applied by David and Dagbert (1975) on examples of data from geochemistry and geology. In the approach used in this paper, CA is used to create the basic framework for defining different types of ore. The final definitions of ore types take into account the mi¬ning method and the results of applying beneficiation processes to the ore.

Jan 1, 1982

By Richard H. Bares

One criterion central to most definitions of reclamation is the restoration of mined lands to their original productive potential. This is often difficult to achieve on mined lands in the Northern Great Plains because of the rigorous climate (Bares 19;2) and various soil related problems including sodicity, salinity, soil permeability, low organic matter and plant nutrient deficiencies (Malakondaiah and Safaya 1982). Field study sites were established on recontotured mined areas during the early 1970's (prior to the topsoil mandate) in which several amendments were tested for their ability to improve spoil/topsoil conditions and, hence, increase plant production. Physical and chemical properties of these control (untreated) and amended spoils and topsoils have been summarized (Safaya et al. 1982). A number of grass and legume species combinations were studied. The general effects of one time (prior to seeding), single rate (approximately 100 mT ha-1) application of leonardite and/or slack coal to spoils and topsoils was the reduction of grass dry matter yields (NB 1 test site: dry matter yield (DMY) without slack was 110 g m 2 yr I ; DMY with slack was 80 g m -2 yr 1 I and the promotion of legume establishment and yield (SB test site: DMY without leonardite was 13 g m 2 yr -1; DMY with leonardite was 93 g m 2 yr 1). On South Beulah topsoil, treated with leonardite, production of weedy species was remarkably lower than that without leonardite (SB test site: DMY without leonardite was 252 g m - yr -1; DMY with leonardite was 177 g m 2 yr 1). The general effect of commercial fertilizer applied one time prior to seeding (rates ranging from 9-13-0 to 44-1 12-28 kg ha-1 of N-P-K) was to increase plant production during the first two to three years after which the effect disappeared. This effect was much more pronounced on spoils (NB I test site: DMY on spoils without fertilizer was 53 g m -2 yr -1; DMY on spoils with fertiliser was 132 gm -2 yr -1). Weedy species accounted for most of the biomas, production during the first growing season. Three of the test sites were designed to study plant production on topsoils and spoils. Establishment and production of grass species were comparatively better on topsoils (30 cm in depth) than on spoils while legumes were most successful on the soils (Center test site, 1979; DMY of grasses on topsoil was 170 g m 2 yr -1 DMY of grasses on spoils was 52 g m -2 yr -1; DMY of legumes on topsoil was 20 g m -2 yr -1; DMY of legumes on spoil was 191 g m 2 yr -1). Total plant production on topsoiled (302 m thickness) plots at the South Beulah site (DMY in 1979 of 269 g m 2 yr 1) was comparable to that of native western wheatgrass prairie (DMY of 262 g m -2 yr -1). An experiment was conducted to find out if time of planting would have any effect on establishment of grasses on spoils. It was fund that late fall seeding was superior to spring planting for establishment of wheatgrasses at NB 3 test site (Control Plot, 1975: DMY on spring-seeded was 1 g m -2 yr - 1; DMY on fall-seeded was 55 g m -2 yr -1). In general, wheatgrasses (slender, streambank, thickspike and western) yielded the most aboveground biomass of all the grass species tested; yellow sweetclover was the most successful legume. Yellow sweetclover established and was productive on both spoils and topsoils but only where competition with grasses was apparently minimal. Durar hard fescue established and thrived on topsoil but dry matter production was low compared to that of wheatgrasses. Emerald crown-vetch demonstrated a potential for growth on spoils where water conditions were adequate, whereas side-oats grama, prairie sand-reed, alkali sacaton, and bird's -foot trefoil demonstrated only sporadic success. Little bluestem did not become established at any of the test sites. Peak production of the planted species, especially grasses, was generally reached by the second week of July. Legume and weed production continued to increase into late August.

Jan 1, 1982

By David R. Maneval

The mining of coal in Alaska receives special treatment in the Surface Mining and Reclamation Act passed by the U.S. Congress in 1977 (PL95-87). Section 708 of the Act required that the National Academy of Sciences (NAS) perform a study of "Surface Coal Mining Conditions in the State of Alaska, In Order to Determine Which, If Any, of the Provisions of the Act Should be Modified with respect to Surface Coal Mining Operations in Alaska'. The special committee on Alaskan Coal Mining and Reclamation of NAS completed their study in 1980 and prepared their report (NAS, 1980). At this time, the Secretary of the Interior and the Congress have taken no special action with regard to either special regulations geared specifically to Alaska or to submitting special draft legislation to the Congress requesting amendment of PL95-87. The Alaska Department of Natural Resources (DNR) has drafted legislation which was submitted to and passed by the 1982 session of the State Legislature. The State regulatory agency has also drafted the requisite regulations necessitated by the amendments to the State's Basic Coal Mining Act. It is expected that by mid 1983 DNR will have applied for "primacy" to the office of Surface Mining, U.S. Department of the Interior (OSM). They will be submitting the amended State Law, the revised State Regulations and an operational plan as called for by OSM regulations. The presumption is that primacy will be granted to the State of Alaska under PL95-87. The Usibelli Coal Mine continues to be the only operational commercial mine for coal in the State of Alaska. It produced 7.26 x 10 kg (8 x 10 " T) of coal during 1981. The current mine was started in 1920 by Captain Lathrop, an early developer and pioneer in Alaska. It was continued by Emil Usibelli and was taken over after the death of E. Usibelli (in the 1964 earthquake) by his son Joseph Usibelli who is the current President of, the firm3 Their latest improvement is a 27.5 m (36 yd. )Bucyrus-Erie Dragline which handles most of the overburden removal. The coal is removed by a loader-truck combination. They are currently starting up the use of a unit train loading facility which handles forty cars every two hours. This loading system was a development necessitated by the Sun Eel Export contract. The Alaskan Railroad was a major cooperator in the development of the first unit train loading facility in Alaska.

Jan 1, 1982

By David S. Bolin, Bruce Kennedy, Leigh A. Readdy, Graham Mathieson

INTRODUCTION The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore reserve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion presents an overview of somewhat more sophisticated methods of geostatistics which have been developed within recent Years. Geostatistical methods frequently provide the best ore re- serve estimates for many deposits. However, a digital computer is required for such geostatistically derived estimates due to the number and complexity of the cornputations involved. For many properties the classical nongeostatistical methods are adequate, particularly in the early exploration stages. In fact, it is the author's contention that even at those properties where the geostatistical approach is employed for reserve estimation, the geological and engineering staffs should prepare an estimate by traditional means. This provides an internal audit for the reserves and at the same time requires a continuing close appraisal of geologic problems that influence the presently known geostatistically estimated reserves and production at the mine.

Jan 1, 1982

No noticeable international economic recovery occurred during the first half of 1982. Industrial production continued to fall in the United States, Canada and Italy and to hold steady in France. Modest increases in production occurred in Japan, England and Germany, although some decline took place from March to April. The U.S. mining industry has been more severely affected by the world recession than the U.S. economy. This is not immediately obvious when comparing the U.S. mining industrial production index from 1981 to 1982, which decreased 8.5 percent, as compared to a 7.1 percent decline for total domestic industries. However, "mining" industry statistics in the U.S. national economic accounting system include petroleum and natural gas as well as minerals. When metal mining is isolated, the decrease in production from 1981 to 1982 is 19.3 percent. If metal mining production continues to perform at the same rate during the third and fourth quarters of 1982 as during the first half of the year, declines from 1981 levels will be quite severe. Aluminum will have declined 22 percent, copper 18 percent, iron ore 24 percent, lead 3 percent, steel 29 percent, titanium 2 percent and zinc 25 percent.

Jan 1, 1982

By Mark Davis

As a follow-on to previous investigations, reduced treatment levels for the optimum fire retardant/preservative system were evaluated. An impregnation of 3.5 lbs/ft3 of Fyreprufe followed by 3.5 mils of Albi 107A plus an Albi 144 top coat provides adequate flammability and flame spread protection. However, there is a significant loss in compressive strength at this retention level, particularly parallel to the grain. A pilot-size pressure impregnation cell was installed for use in treating larger quantities of wood. Based on the optimum fire retardant/preservative treatment system - Fyreprufe/ACC impregnation followed by Albi 107A/144 intumescent paint - a model treatment pro¬cess was developed, capable of handling 3 million board feet per year. Associated annualized costs per thousand board feet (K bd. ft.) for treating 12" x 12" timber were calculated to be: Impregnation: $-63.00/K bd. ft. Coating: $112.00/K bd. ft. A literature search was conducted to identify materials and techniques suitable for a localized stench warning system for heated mine timbers. Based on this review, a number of stench warning concepts were developed. Those based on surface coating were given a preliminary laboratory evaluation.

Jan 1, 1982

In March, the Minister of Mines, Mrs. Judy Erola, released a mineral discussion paper at the annual meeting and convention in Toronto of the Prospectors and Developers Association. Among the mineral objectives discussed was the revitalization of the "junior" mining industry. That industry reportedly has seen its share of total exploration expenditures fall from 50% in 1969 to 10% in 1979. Some sources believe the reason to be the rise of exploration costs and more- restrictive legislation The junior mining industry reportedly was responsible for 40% of all mineral discoveries in the 1969-79 period. CZECHOSLOVAKIA Czechoslovakia expects its capacity for the recovery of gallium metal to increase from 1,650 kilograms to nearly 3,000 kilograms per year by the installation of new recovery equipment at the aluminum plant at Ziar Nad Hronom in Central Slovakia. World production data are not reported, but the United States consumed 8,000 kilograms (estimated) in 1981, of which 5,536 kilograms were imported. Gallium is recovered as a byproduct of the Bayer process for the conversion of bauxite to alumina, and from certain zinc processing wastes. It is used for electronic applications such as light-emitting diodes for visual display panels in calculators, clocks, and other instruments.

Jan 1, 1982

By Paul R. Thomas

The Bureau of Mines evaluated the impact of the depletion allowance upon the economic availability of copper from domestic deposits. The potential long-run percentage depletion deduction, cumulated over the life of the properties, was estimated at approximately $2.5 billion for producing properties and up to $11.7 billion for nonproducers. The income transfer, in the form of higher Federal income tax payments if the allowance were repealed, was estimated at $1.5 billion for producing properties and up to $8 billion for nonproducers. The percentage depletion allowance, through its role in determining Federal income tax liability, was found to be very significant in affecting profitability. Repeal of the allowance could result in major domestic copper availability reductions at all price levels, now and in the future, as a result of reduced profit margins for current producers, and postponement of development decisions for nonproducers. It was demonstrated that a 50-percent reduction in the percentage depletion rate applicable to copper would also result in a significant decrease in profitability for nonproducing properties. For producing properties, the percentage depletion rate on copper was shown to be less significant than the income limitation that is placed upon the total amount of the depletion deduction. Repeal of the minimum Federal tax provision was shown to be significant in enhancing profitability for both producing and nonproducing deposits. The report concludes that the percentage depletion allowance operates as an important method of capital recovery and production incentive.

Jan 1, 1982

Although mining, particularly of gold and coal, played a significant role in the development of New Zealand, from the time of the spectacular gold rushes of the 1860s its economic importance to the country as a whole has decreased substantially since that time. Gold, coal and non-metallic agricultural and industrial minerals have been found in economically significant quantities, however, the search for base metals has not been successful.

Jan 1, 1982

The Government of New South Wales has granted approval for Hunter Valley Aluminium Pty., Ltd" and Alcan Australia Ltd. to proceed with the building of an aluminum smelter at Lochinvar and the expansion of a smelter at Kurri Kurri. Construction of the smelters is expected to start as soon as the consortium is finalized in early 1982. The smelters are part of a plan to increase Australia's aluminum capacity fivefold to 1.5 million tons by the mid-1980's. CHILE Construction of a $61 million lithium carbonate plant in northern Chile will be started in early 1983 by Sociedad Chilena del Litio Ltdao Production is scheduled to begin in 1984 with an initial capacity of 6,350 tons of lithium carbonate produced from a brine deposit. The firm is owned 55% by Foote Mineral Company, of Exton, Pennsylvania, and 45% by Corporacion de Fomento de la Produccion-CORFO.

Jan 1, 1982

After nine years of negotiations, the U.N. Conference on the Law of the Sea approved a Law of the Sea Treaty text in April. Israel, Turkey, the United States and Venezuela voted against the text and 17 other nations including Belgium, the Netherlands, Italy, the Soviet Union, the United Kingdom and West Germany abstained. These nations still have the option of joining the treaty when it is opened for signing in December. However, the Reagan Administration has stated that several provisions of the deep seabed mining portion of the text are unacceptable and it seems unlikely that the United States, at least, will change its position. ALUMINUM Reynolds Metals Co. has criticized an Oregon state plan to relax air pollution standards for aluminum plants. The company feels that relaxation of the rules does not go far enough. Reynolds officials say that they have spent about $31 million at their Troutdale plant for state-of-the-art pollution control equipment, and if they are required to make the pollution reductions called for in the 1986 rules, Reynolds would be forced to close the 40-year-old plant.

Jan 1, 1982