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By Maru Y

The use of mercury for amalgamation has been an integral part of the small-scale gold mining industry in developing countries owing to its low investment cost, simplicity of the technique and high gold recovery. However, its impact on health and environmental hazards have not been given the attention they deserve. In spite of the growing awareness and concerns over the mercury pollution problem by regul-atory authorities, precautionary measures such as bans on the use of mercury in some countries have been largely ineffective.This paper first reviews some of the mechanisms of mercury poll-ution, and mercury toxicity which varies according to its oxidation state. It then describes how mercury released to the atmosphere would go through the "Mercury Cycle". Compar-isons have also been made with previously measured mercury levels in small scale Papua New Guinean miners with their counterparts in other developing countries.

Jan 1, 1994

By Rudolf E. Greuer

Modeling a mine ventilation system is a formidable mathematical problem requiring the solution of twice as many equations as there are airways with half of these being quadratic equations. The addition of a mine fire to the problem adds many more complexities. The U.S. Bureau of Mines and Michigan Technological University attacked this problem in stages. During the 1970's and 80's, a series of computer simulation programs were developed which offered progressively increasing levels of modeling capability and accuracy. The current version of this software, MFIRE 2.0, was released in 1993. This programs provides for full dynamic state mass flow-based modeling of a mine ventilation system, and includes natural ventilation, mechanical ventilation, air reversals and recirculation, methane and fire contaminant spread, and moisture condensation and evaporation in the mass flow and heat exchange calculations. This program is a useful tool for routine ventilation planning and can significantly improve mine safety by enabling detailed quantitative analysis for mine emergency preplanning. This paper reviews the evolution of the MFIRE program from its infancy as a simple digital network simulator replacing analog computers to the present version.

Jan 1, 1994

By Robert J. Henning

The term olivine was first used in 1790 by J. Werner, and the corresponding mineral was so named because of its olive-green color (Hunter, 1941). Olivine is the principal component of the rock known as dunite. While by classic definition dunite is composed of 90% or more olivine, commercial use of these terms has resulted in more specific definitions. Commercially, the term olivine is used to designate a material that consists of 85% or more forsterite and contains 45 to 50% MgO, 39 to 42% SiO2, 5 to 8% Fe2O3, and has an ignition loss (LOI) of 1 to 2%. The term dunite designates a rock that contains 36 to 45% MgO, 36 to 39% SiO2, and has an ignition loss of as much as 10% (Teague, 1983). GEOLOGY Olivine is found in basic igneous and basic metamorphic rocks whose age varies from pre-Ordovician to Tertiary. Economic deposits are of magmatic origin and are restricted to the dunite variety of the peridotite group of ultrabasic igneous rocks. Olivine also occurs in basic igneous rocks such as gabbro, basalt, and diabase and more rarely as an accessory mineral in granite and metamorphosed crystalline limestones. Mineralogy The term olivine refers to a group of orthosilicate minerals in isomorphous series with magnesium-rich forsterite (Mg2Si04) as one end member and iron-rich fayalite (Fe,SiO,) as the other. In most olivines the ratio of magnesium to iron varies from 16: 1 to 2: 1. Commercial olivine deposits contain a mixture of forsterite and fayalite with the fayalite content restricted to less than 15% (Reed, 1959; Teague, 1983). Accessory constituents may include primary minerals such as ilmenite, magnetite, diopside, chromite, and garnet and secondary minerals such as chlorite, serpentine, talc, and vermiculite as alteration products. Chemical and Physical Properties The chemical composition of olivine can be expressed as either (Mg, Fe), SiO, or 2(Mg, Fe)O.SiO,. Table 1 presents chemical analyses for some commercial olivines. The physical properties of olivine are shown in Table 2. Distribution of Major Deposits Commercial olivine and dunite deposits are found in Norway, Japan, Spain, India, Italy, the United States, Sweden, Austria, Pakistan, and Mexico. Noncommercial deposits have been reported in New Zealand, Zimbabwe, South Africa, New Caledonia, Greece, Brazil, and Canada (Teague, 1983). The present markets for olivine are characterized by low unit value, high volume, and high sensitivity to freight costs, so few deposits are commercially viable. Literature from the USSR indicates that considerable research on olivine refractories is being done. (Afansa'ev, 1988), lending credibility to the conjecture that commercial deposits are being mined there. In eastern Canada synthetic olivine is being produced by calcining chrysotile asbestos mine tailings. In the United States numerous lenses of olivine extend in a belt from northeast Georgia northeastward across western North Carolina. Total reserves in North Carolina and Georgia are estimated at between 125 and 200 Mt. The largest US deposit is Twin Sisters Mountain, located in Whatcom and Skagit Counties in the state of Washington. This deposit, which has an outcrop area of 93 km2 and a relief of about 1 525 m. is estimated to contain 1 800 Mt of fresh, unaltered olivine (Teague, 1983). In addition, the US Bureau of Mines reports reserves of 50 Mt on Cypress Island in the state of Washington, and the literature reports eight complexes in southeastern Alaska, some containing cores of olivine as large as 1.6 km in diameter (Taylor, Jr., 1967). The world's largest deposit of olivine occurs in the Aaheim area of Norway, where reserves are estimated at a 2 000 Mt. Several other Norwegian deposits contain as much as 5 Mt each. In Japan the production of ultrabasic rocks is currently about 6 Mtpy, but the bulk of this output is serpentinite. Olivineldunite accounts for only 17% of this production. The major olivine deposit in Japan is located at Horoman Hill on the northern island of Hokkaido. Reserves at this deposit are estimated at 100 Mt (Anon., 1990). Spain is one of the largest producers of dunite. Reserves in the La Coruna District in northwestern Spain are estimated at 100 Mt. India, also a major dunite producer, has a large deposit at Salem in Tamil Nadu. In Italy olivine/dunite is mined from a deposit near Turin. In Sweden the largest deposit is at Arutats and is reported to be comparable in size to the Twin Sisters deposit in the United States. At present the only production in Sweden is from a deposit 30 km south of the town of Gallivare. Reserves at this deposit are reported to be between 1 and 2 Mt. Other significant deposits are: 1) in Austria at St. Stefan near Leoben, 2) in the Swat District of the North West Frontier Province in Pakistan, and 3) in Mexico at Cuidad Victoria in Tamaulipas (Anon., 1990).

Jan 1, 1994

By P. A. Tuzinski, L. J. Dahl, N. R. Adamson, S. E. Brink, R. L. Blake

The US Department of the Interior, Bureau of Mines is developing a process to selectively extract manganese from oxide ores as part of its in situ mining research program. The Bureau is conducting site characterization studies of two manganiferous iron-formation deposits. These studies include: drill core, regional stratigraphic relationships from the existing geologic database, ore body geometry, geologic structure, hydrologic conditions, accessibility of ore minerals to leach fluid, surface subsidence potential and data collected from laboratory leaching experiments. This information is being used to evaluate the technical, environmental and economic feasibility of in situ mining of manganese for these two deposits. This paper will focus on the stratigraphy, mineralogy, ore textures, fractures, permeability and porosity as they relate to in situ mining.

Jan 1, 1994

By J. F. Perreault, J. Paraszczak

"The profitability of an underground mine depends to a great extent on the production cost.Random equipment failures and their consequences have significant influence on the total operating cost of a mining system. Having this in mind, a reliability study has been initiated for loadhaul- dump machines in an underground mine. The main purpose of this study is to identify the critical machine subsystems, determine their failure pattern and help work out an effective maintenance strategy. In the first part of this study, the failure data of diesel powered LHDs, gathered during an I8-month period have been analyzed. For the purpose of the analysis, the machines have been treated as systems comprising seven subsystems connected in series. The most critical subsystems, i.e. electrical and hydraulic, were further investigated, and analyzed by graphical and analytical methods. Different failure distribution models were applied and discussed. Basic Defmitions and ConceptsIn order to avoid confusion, several terms used in this paper are defined below, as compiled by O'Connor (1991). The acronymsBS and MIL-STD stand respectively for: British Standard and US Military Standard.Failure: the termination of the ability of an item to perform a required function (after BS 4778).Time Between Failures (TBF): the length of time between two consecutive failures.Observed Mean Time Between Failures (MTBF): For a stated period in the life of an item, the mean value of the length of time between consecutive failures computed as a ratio of the cumulative observed time to the number of failures under stated conditions (after BS 4778).Maintenance, Corrective: The actions performed, as a result of failure, to restore an item to a specified condition (after MIL-STD-721 B).Maintenance, Preventive: The actions performed in attempt to retain an item in a specified condition by providing systematic inspection, detection and prevention of incipient failure (after MIL-STD-721B)."

Jan 1, 1994

By M. Rubinstein, N. C. Koon, B. N. Das, V. G. Harris

"Copper and gold - based alloys having giant magnetoresistance properties were produced by melt spinning from arc melted and cast rods. The ribbon width varied between 1 and 2 mm and the ribbon thicknesses were in the range of 30 to 50 11m. The uniform microstructure of the cast rods indicated the composition homogeneity in the starting material. The ribbons showed composition uniformity across the cross section from EDX analysis. However, the spun ribbon microstructure changed from a 'frozen in' region near the wheel side to a nanosize spherically precipitated phase towards the freely frozen surface. The evolution of the microstructure from the spun ribbon state to the annealed ones was studied by optical microscopy, SEM and TEM. The structural information of the spun and annealed specimens was obtained from X - ray, electron diffraction, electron microscopy and ferromagnetic resonance. Magnetoresistance was measured by the four point probe method.IntroductionRecently. Giant Magnetoresistance. GMR. has been observed in sputtered thin films alloys of Ag. Au and Cu with Co and Fe [1. 2. 3]. The sputtered films are produced by condensation of the alloys from the vapor phase. These Ag. Au and Cu alloys are miscible and homogeneous in the vapor and liquid phase (except Ag alloys which exhibit phase separation even in the liquid phase) but immiscible and heterogeneous in the solid phase. In our work we have produced thin ribbons of the Cu and Au alloys about 30 µm thick from the miscible state in liquid phase by rapid solidification melt spinning. The microstructural development of the ribbons was investigated in the as - spun condition and on annealing. The other properties such as magnetization. GMR and Mossbauer Spectroscopy were also investigated in the various microstructural conditions of the ribbons."

Jan 1, 1994

By Y. Luo, S. S. Peng, C. T. Holland

Introduction A well-designed mining plan is one that minimizes cost and mining induced problems and maximizes recovery of the coal reserve. To minimize the negative effects on surface structures caused by ground subsidence due to underground mining activities, two kinds of practices are commonly employed by mine operators. One is the support technique, which leaves an area of coal unmined or partially mined beneath the structure to be supported. The other is the protection technique, which protects the structure when it is subsiding with the ground by taking advantage of the ground subsidence process (Luo et al., 1992). In designing the supporting technique, the only currently available method in the US is the one stated in the Pennsylvania Underground Coal Mining Rules (1985). However, the size of the support area designed by this method will be excessively large and result in a wasteful use of coal reserves when the overburden depth is more than 350 ft. A more scientific method is proposed in this paper for designing the support area. This method is based on a large amount of subsidence data collected throughout a number of major US coal fields and the authors' experience with monitoring and protecting surface structures that have been undermined by longwall panels. It considers the critical deformation indices that a structure can tolerate, and depth and height of underground extraction. A support area designed by this new method will not only assure the safety of the structure to be supported but will also maximize the extraction of the coal reserve. Design of support area using the Pennsylvania rules The Pennsylvania Underground Coal Mining Rules (1985) state that no underground mining activity should be permitted beneath structures where the overburden depth is less than 100 ft. An exception to these rules is provided for mine related openings that provide access to the surface for such as entries, shafts, boreholes and site-specific variances for entry development. If the overburden depth is greater than 100 ft, the mine operators should utilize either of the following: •Extraction techniques that provide for planned subsidence in a predictable and controlled manner, or •Support techniques designed to prevent subsidence damages to features identified as: •Public buildings and non-commercial structures [ ] customarily used by the public, including churches, schools and hospitals • Dwellings, cemeteries, municipal public service operations and municipal utilities in place on April 27,1966 •Impoundments and other water bodies with a storage capacity of 20 acre-ft or more • Aquifers, perennial streams and water bodies that serve as a significant source for a public water supply system, and •Coal refuse disposal areas. The support techniques require that a support area be left beneath the surface structure or feature to be protected (Fig.1). The support area should consist of coal pillars, with their size and pattern being such that their bearing strength is maximized. The total coal extraction within the support area should be limited to a maximum of 50%. The support area should be rectangular in shape and determined by projecting a line at a 15° angle from the surface to the coal seam with an offset distance of 15 ft from all sides of the structure. For a

Jan 1, 1994

By V. Ramachandran

ASARCO Incorporated, a large and diverse producer of non-ferrous metals, is involved primarily in smelting and refining of copper and lead. The Company also recovers by-product metals and chemicals produced in the smelting and refining process including selenium, tellurium, silver, gold, platinum, palladium, bismuth, antimony oxide, lead-antimony alloys, and nickel sulfate. The treatment of complex concentrates, containing high level's of impurities, also results in the production of various sludges, drosses, dusts and slags. This paper addresses the interplant and intraplant transfer of these materials between the copper and lead circuits and their subsequent treatment for maximum metals recovery. It also describes the role of ENCYCLB/TEXAS Inc., a subsidiary of Asarco, which treats Asarco's by-products, as well as hazardous and non-hazardous wastes produced by other manufacturers.

Jan 1, 1994

By W. Almdal

"To compete in the ever expanding global market, companies must continuously improve. Benchmarking, a tool that can help determine where the best areas for improvement are, is more than comparing measures, it is comparing how business is carried out and how decisions are made. The key to success is in integrating benchmarking results into the organization, so that those most affected by the results own them and are empowered to use them as a positive change agent. This is a necessary step to achieving substantive change to practices and achieving optimum performance improvement. IntroductionBenchmarking is a powerful tool that can assist in the continuous goal of improvement. Benchmarking is more than comparing productivity rates or unit costs, it is seeking out best practices and assimilating them into a business to provide a positive change agent.Benchmarking is a continuous process - is time consuming, labour intensive, and requires a lot of discipline. There are no easy answers and no easy solutions, just a lot of work. The results, however, are nothing short of spectacular. More and more companies are adopting benchmarking practices because it is a key tool of the learning organization and will become part of the way business is done, part of the way it is managed. Business must change to stay ahead or to get ahead and benchmarking can accelerate the process of business change. Improvements in an organization can happen faster and more effectively with a benchmarking approach."

Jan 1, 1994

By L. B. Rothfeld

In anticipation of RCRA reauthorization and subsequent rulemakings, the Bureau of Mines is studying potential economic impacts of RCRA on mining. For U.S. copper heap and dump leaching operations in a variety of terrains, the cost of liners and closure caps to comply with RCRA Subtitle D ranges from $55 million to $158 million per site, or about $500,000 per hectare ($200,000 per acre). If RCRA technology requirements and financial assurance had been required on current operations, 27 to 100% of production from heap and dump leaching would have been non-competitive at market prices between $2,310 and $1,650 per metric ton ($1.047 and $0.75 per pound) copper. This result is based on an analysis that considers return on capital, corporate overhead, marketing, and freight costs as well as operating and maintenance costs at the mine. Over the same price range, economic analysis using the IMPLAN input-output model on one-or two-county regions indicates potential net job losses of about 570 to 2,700 jobs. Total economic output of those counties could be reduced by about $180 million to $360 million.

Jan 1, 1994

By R. D. Miller, D. W. Steeples

Seismic reflection is a powerful geophysical exploration method that has been in widespread use in the petroleum industry for more than 60 years. This paper addresses some basic principles of the method and its application at depths shallower than 30 m (100 ft). Since 1980, the shallow reflection technique has been increasingly used for engineering and environmental problems, such as mapping bedrock beneath alluvium and delineating intra-alluvial features near hazardous waste sites, detecting voids in coal and karst, defining the top of the saturated zone and mapping shallow faults. New applications will be added with improved resolution and increased cost-effectiveness.

Jan 1, 1994

By J. Brasfield

Jim Walter Resources, along with the Rock Mechanics Branch of British Coal and Strata Control Technology Pty. Ltd., is presently studying the yield-stable-yield pillar design in use at the Blue Creek No. 7 Mine located in Brookwood, Alabama. This paper describes the steps taken to determine stresses on the strata surrounding the pre-driven development entries. It also describes the installation and monitoring of stress cells and extensometers used to quantify the stress build-up and strata movement associated with the headgate pass of a longwall panel. The findings of this study will be used to design and predict the performance of a 2 entry yield pillar system in the Parkgate Seam at Welbeck Colliery in the United Kingdom. Stress measurements and strata movement data from No. 7 Mine and Welbeck will be used to develop a computer model that can predict the performance of such a pillar system in British mines. Jim Walter Resources will use this data to study the performance of the present yield-stable-yield pillar system in order to determine if conditions will allow the stable pillar width to be decreased while maintaining current standards of safety and production.

Jan 1, 1994

In 1953, Dr N Fisher of the Bureau of Mineral Resources, acting on behalf of the Society of Economic Geologists, which is considering the sponsoring of a uniform system of nomenclature for ore reserves, enquired from The Australasian Institute of Mining and Metallurgy whether it had ever considered this subject and particularly whether it had ever set up any standard definitions or specifications with regard to ore reserves.As this had not been done, but was thought to be desirable, the Council of The Institute appointed a Committee consisting of H H Dunkin, Associate Professor of Mining Engineering, University of Melbourne (Convenor); E A Rudd, Professor of Economic Geology, University of Adelaide; J D Campbell, Chief Geologist of Western Mining Corporation; and the writer, to consider the report on this subject.In December 1953, the Committee submitted its frrst report to the Council and this report (reproduced here as an Appendix) was widely circulated among member companies and engineers, with an invitation to comment on the proposals. A large number of replies was received and studied.After studying the replies the Committee issued a second report, in part as follows:From these replies we have learned that the suggestions made in the frrst report of the Committee are unacceptable to most of those interested, on one or all of the following grounds:a. number of categoriesb. defmition of categoriesc. nomenclature.It is also apparent that all alternatives suggested in the various replies would likewise be unacceptable to the majority of those replying.As a result, we have come to the conclusion that neither this Committee nor any other could at present and in the present state of opinion on the subject make recommendations regarding classification and nomenclature of ore reserves which would be acceptable to a sufficiently large proportion of members.It seems to us now that the objective of a widely applicable and acceptable system of classification and nomenclature, one that could be endorsed by The Institute and ultimately become standard practice in the industry, requires more than compromise between present conflicting views... it requires first a foundation of substantial agreement on the essential facts, implications and range of ore reserve estimation. This does not yet exist and it is evident that much additional analysis of present practice and opinion must be undertaken before any further systhesis is attempted.

Jan 1, 1994

The ""multiple of exploration expenditure"" method of mineral valuation is applicable to exploration properties from the earliest stage of exploration to a moderately advanced stage but for which no resources have been delineated. While not recommended as a primary valuation method by some workers, others believe it to be the most satisfactory method of valuing exploration properties until it is possible to employ a DCF technique. In many situations facing the professional valuer, the method may represent the only semi-quantitative option available and is frequently used. Significantly it often forms the starting point in discussions to farm-in on an exploration tenement. The paper briefly reviews the definition of value as applied to mineral valuation and in particular examines the relationship between fair value and market clearing price in ""fair"", bull and bear markets. The multiple of exploration expenditure method uses previous exploration expenditure and/or future committed exploration expenditure to derive a base value for the tenements. This base value is multiplied by a prospectivity enhancement multiplier (PEM) with adjustments for market premium or discount and consideration of the quality of the exploration team to derive a fair value for the tenements. The paper will demonstrate that there is no necessary nexus between fair value derived from the method and present book Values.

Jan 1, 1994

By Marcelo B. Mourão

The reduction of iron ores by solid carbon, when both are agglomerated together in the form of pellets, has important kinetic advantages. Although several studies have been performed on the subject, some points on the controlling mechanisms need clarification. There is a big scatter in the values of the apparent activation energy reported in the literature, and this may be due to factors like heat transfer, flow of gases in the reduction system, pellet size and composition. This work is concerned with the effect of several parameters on the reaction rate. The parameters studied were temperature (in the range 1173 K to 1423 K), carbon type (coke or charcoal), pellet size, gas flow rate, catalyst action of the produced metallic iron and added sodium carbonate. It has been shown that the values of the apparent activation energy can change according to the reduction conditions employed, and hence any modeling effort will have to take account of these parameters. EPD Congress 1994

Jan 1, 1994

By R. G. Reddy

Iron solubility's in spent pickling (HFHNO3 -H2O) solutions were determined as a function of HF and HNO3 acid concentrations. A chemical analysis of the industrial pickling solutions and sludges was performed. The stable phases observed in the sludges are FeF3.3H2O and (FeCr)F3.3H20. Pure Fe metal, AISI 316 stainless steel and AISI 416 stainless steel were used in this study. The results show, that the solubility of Fe increased as the concentrations of HF increased in the pickling solution at a fixed concentration of HNO3. A reasonable agreement between the experimental solubility data and the theoretical calculated data was obtained. X-ray diffraction analysis showed that the solid solubility product formed in the ternary solution containing pure Fe is mainly, at a high pH value, FeO(OH) compounds and, at a low pH value, Fe F3.3H2O compounds.

Jan 1, 1994

By Bruce Hern

The last 10 years have seen a dramatic increase in the requirements for product coal quality control. This has led to electric utility sulfur scrubbing, metallurgical blast furnace optimization and coal producer blend and yield optimization. To achieve this improved level of control, coal producers are designing facilities that emphasize new technology. New facilities will be designed and existing facilities will be retrofitted with state-of-the-art technology to meet quality control standards that are dictated by the market. The first step in designing for process control requires the identification of those parameters to be controlled and the upsets that can cause variances in the final shipped product quality. The most common parameters that require control are the surface moisture (%), ash (%), pyritic sulfur (%) and gross calorific value (Btu). Total moisture is that moisture that exists on the surface of the particle and is inherent in the particle itself. For the purposes of control, the total moisture is monitored, while surface moisture is controlled. Ash is the inorganic residue remaining after all other constituents are burned away at 75O°C( 1382°F)(ASTM, 1992). Sulfur is the amount of total sulfur that exists either as pyrite (FeS2), inorganic sulfate (FeS04), or organic sulfates (C4H4S) (Leonard, 1979). Currently, pyrite is controlled and total sulfur is monitored. The gross calorific value is the amount of heat produced when a unit quantity of coal is ignited under specified conditions. In this case, a l-g (0.03-oz.) sample of coal is ignited in an isoperibol waterbath and the temperature rise of the water bath is observed. The moisture and ash-free (MAF) Btu is relatively constant for a given seam, resulting in the whole calorific value being a function of the moisture and ash levels (Leonard, 1979).

Jan 1, 1994

The large, low grade, Kidston Gold Mine in North Queensland has achieved outstanding economies of scale and profitability. The total mineable ore reserve including mined to-date (as at December 1993) was 70.75 million tonnes at 1.54 grams gold per tonne. After nine years of mining, grade control mine production routinely reconciles against mill production and ore reserves to within five per cent of contained gold. The grade control system developed at Kidston is examined in detail, with emphasis on the geological thinking behind the strategies, as well as the development and application of a computerised, graphical production control and reporting system. Reconciliation procedures and results are explained, illustrating the success of geostatistical methods, as a risk management tool, in both ore reserves and production grade control.

Jan 1, 1994

By K. M. Tait, M. M. McDonald

"An overview of the status of the development and application of Integrated Gasification Combined Cycle (IOCC) power generation is presented. Current projects in North America, Europe and Japan are described, together with the status of plans to apply the technology in Canada. A brief review of the technology is presented, including promising coproduction cycles and hybrid gasification fluid bed processes. The ability of the process to be modified for CO2 to be extracted for enhanced oil recovery or disposal is addressed. The environmental impact of IGCC technology is compared to those of other power generation technologies IntroductionDefinition and HistoryIntegrated Gasification Combined Cycle (IGCC) technology is a concept which has been around for about 50 years but has been generating increasing interest in the last 10 to 15 years. This paper focusses on coal as the feedstock for gasification. Other feedstocks used in gasification systems have included oil, biomass, tires and petroleum coke. IGCC technology integrates coal gasification with generation of electricity by means of a combined cycle system which fires the produced gas in the gas turbine. Figure 1 shows the basic components of an IGCC system which are the gasifier, the gas cleanup system and sulphur recovery plant, the gas turbine/generator set, the heat recovery steam generator (HRSG) and the steam turbine/generator set. The benefits of an IGCC system over a conventional Rankine Cycle pulverized coal (RCPC) fired system for the generation of electricity from coal are that the IGCC system has potential to have higher efficiency and lower emissions of NO., SO and CO2 per unit of power produced than the corresponding RCPC system."

Jan 1, 1994

By R. A. Horn, S. M. Telfer

"Canada has a per capita GDP second only to Japan among the G7 countries and a positive trade balance which ranks third among the world's major economies. International trade represents a very large part of the national economy and as a proportion of GDP is larger than that of all the other G7 countries with the exception of Germany. On the negative side the Canadian current account deficit relative to the size of the economy is significantly worse than that of all major industrial countries, due mainly to the cost of servicing an immense foreign debt and to a large and worsening negative trade balance in manufacturing.The outflow of money may be reduced by increasing the productivity and competitiveness of those sectors of the economy in which Canada already has a leading competitive position and which have the potential for further growth. The mining industry is uniquely qualified in this respect in that Canada is the western world's largest producer of metals and mineral products and has the geology and the exploration skill to replenish reserves assuming that an adequate level of investment is maintained. In 1989 the minerals industry contributed $8 billion to the country's balance of payments and with the exception of forestry is the only sector of the economy which has shown consistently increasing foreign earnings over the long term.In recent years there has been a decline in exploration in Canada and a significant increase in countries such as Chile. The demand for hard currency to finance the development of the newly emerging capitalist economies of the CIS and Eastern Europe is also driving these countries to seek foreign investment to allow them to exploit their natural wealth more efficiently. Canada is therefore facing growing international competition for risk capital and in the future its trade surplus will probably decline in the face of lower cost foreign production.Canada rightly exercises a high level of environmental control on its mining operations; however a significant deterrent to investment is the fundamentally unjust application of the many provincial and federal environmental laws, under which a mining company, even if it takes every measure to protect the environment, runs the risk of eternal and unlimited future liability. If this situation is not rectified the effect will be an increase in global pollution as mines in countries with more lax application of law and regulations controlling environmental damage replace those of Canada. Tax benefits and incentives are a more efficient means than arbitrary regulations in minimizing environmental damage."

Jan 1, 1994