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By W. M. Bertholf

To establish the minimum or break-even efficiency of a preparation plant it is necessary to determine the ratio of production costs per ton of run-of-mine coal to sale price per ton of clean coal. This ratio is then divided by the percentage of plant recovery. Assume, for example, that washability data indicate that 80 pct of the run-of-mine coal may be recovered as clean coal selling for $5.50 per ton. If the same plant incurs $4.00 per ton mining costs and $0.25 per ton preparation costs, the cost to sale price ratio would be 4.25/5.50, or 77.3 pct. Since the plant is capable of recovering 80 pct of the run-of-mine coal the minimum plant efficiency would be 77.3/80, or 96.6 pct. If the plant efficiency were increased to 100 pct the limit on preparation costs would be increased to $0.40. Therefore, the washing operation must be accomplished at a cost of $0.25 to $0.40 per ton and the efficiency must be 96.6 pct or higher. By plotting a curve of efficiency vs preparation costs and taking into consideration the plant cost, feed rate, operating costs, and yields of the various flowsheets it is possible to select a financially sound process. Table I classifies preparation processes according to their nature of separation. It must be remembered that what is thought to be ideal does not always prove practical under actual operation. An outstanding example is the work done on the plunger-type jig. It was determined by the law of equivalence that this unit could treat satisfactorily only sizes differing by no more than a ratio of 2. Yet these same plunger-type jigs are successfully treating sizes considerably greater than this ratio.

Jan 12, 1957

By G. P. Dvoichenkova, E. A. Trofimova, M. V. Zaskevich, V. A. Chanturiya

The paper presents theoretical and practical aspects of directed adjustment of physicochemical properties (pH,Eh) and ion composition of recycle and mine water by electrochemical treatment. Treatment is run in the conditioners of diaphragm-type with production of alkaline catholyte of pH value up to 12 and acidic anolyte of pH up to 2. In process of water electrolysis the directed motion of Mg2+ and Ca2+ ions is observed from anode volume to cathode one, were they precipitate as hydroxides and carbonates; it leads to decrease of salt content in anolyte and catholyte. The anolyte has been concentrating anions, it is being saturated with oxygen, which reaches 20-35 mg/L. The results of experimental and industrial testing of electrochemical technique for mine and recycle water in flotation of diamond-containing and sulphide-scheelite, hematite, phosporite, apatite-nephelite, bauxite ores indicated the increase of recovery up to 2-1 5% and grade up to 0,5-2%, concurrent with decrease of reagent consumption from 15 to 50 %. Modules of industrial conditioners of different type capacity have been developed.

Jan 1, 1995

By H. J. Thevik, A. K. Dahle

"A mathematical model that calculates the stress development in a coherent and stationary dendritic network due to interdendritic flow is proposed. The fluid flow is assumed to be related to the solidification shrinkage, and under the assumption of no porosity formation and unidirectional solidification, the shrinkage-induced flow within the mushy zone is calculated analytically. The interdendritic melt flow exerts a force on the solid network and an analytical expression for the stress build-up in the network is developed. Parameter studies illustrating the influence of cooling conditions, mushy zone length, dendrite coherency, fraction solid, volume fraction of eutectic, and solidification shrinkage upon the stress development within the solid network are presented. Comparing the magnitude of the calculated stresses to measurements of the strength in equiaxed mushy zones shows that it is possible for the stresses to exceed the strength, thereby resulting in reorientation or collapse of the dendritic network.IntroductionInterdendritic fluid flow is at present regarded as a very important mechanism for feeding of shrinkage during solidification of metal alloys. Solidification of many alloys is often characterised by heterogeneous nucleation of the primary phase on substrates in the melt with subsequent evolution of equiaxed dendrites. These equiaxed dendrites can initially grow freely, but impinge on each other and form a continuous dendritic network, ie. dendrite coherency, quite early in the solidification process. Measurements of the dendrite coherency point have shown that the dendritic network is established at solid fractions ranging between 0.1 and 0.5, and most often around about 0.2 [l]. Depending on the alloy composition this means that as much as 70 to 80% of the volumetric shrinkage has to be compensated by flow of liquid through the interdendritic network. Interdendritic flow occurs with a much larger resistance compared to free flow of the liquid and flow of a liquid with dispersed crystals. The pressure drop associated with the interdendritic flow increases rapidly with decreasing fraction ofliquid."

Jan 1, 1999

By P. G. Thornhill

EARLY in 1951, Falconbridge undertook a research program aimed at the development of a sulphate roasting process for the recovery of the non-ferrous rnetals from the nickeliferous pyrrhotite fraction of Falconbridge ore, in order to reduce the tonnage of iron entering the srnelter. Such a method, it was hoped, would permit a high recovery of the nickel from pyrrhotite otherwise entering the smelter feed, thus not only raising the grade of the latter and reducing its iron content, but also providing an iron oxide residue useful as a source of by-product iron ore. At an early stage in the exploratory laboratory test work it was found that the degree to which the nickel could be solubilized by the sulphating roasting treatment was limited by particle size and the ex-tent to which the pyrrhotite concentrates were freed of the nickel occurring as physically separable pentlandite, a mineral relatively difficult to roast. ( 1) Thus the program

Jan 1, 1961

By Hassan El-Shall, M. N. Ahmad, Ponisseril Somasundaran, C. R. Holland, G. M. Walker, N. Iles, R. D. Chandler, Regis Stana, B. Duddy, Patrick Zhang

Phosphoric acid is a major raw material for the production of ammonium phosphate (AP) that is used as an intermediate in fertilizer production. Impurities within commercial grade wet process phosphoric acid are important in producing a fertilizer granule with good handling properties. The impurities identified as being important are; iron (III), aluminium and fluorine-containing compounds. Results show that the viscosity of the AP slurry produced increases by increasing the amount of impurity in the acid. Bench scale tests have been successfully replicated on a plant scale leading to a better understanding of the composition of impurity levels within phosphoric acid required to produce a high quality, free flowing, hard, spherical and non-caking granular fertilizer.

Jan 1, 2002

By M. Kargar Razi

According to the unique properties and many applications of nano silver powder, it was prepared from acid leaching tail solution. The low value residual gold and silver ions were occurred with fellow heavy metals as pollutants (Fe2+, Cu 2+and Zn2+) in acid leaching tail solution in Mouteh gold mine in Iran. Preparation of nano silver particles was achieved in two steps: first, by addition of ammonia as separation step and second by using different reagents as precipitation and extraction steps. Different controlled parameters were including pH, residence time and temperature, mixing time, and reducing reagents to metals molar ratio. Acid leaching process was carried out with sulphuric and nitric acid via suitable reductants. In order to remove copper, zinc, and silver ions from solution, all of the conditions were controlled. The optimum conditions for preparation of nano silver powder with less than 90 nm were pH 10.5, hydrazine/methanol to silver molar ratio of 3 to 4, and reduction time of 5 min in 45 °C. The results were evaluated via SEM, A.A and UV- Vis spectroscopy analytical methods.

Jan 1, 2014

By Thales Lima Da Silva

As cerâmicas avançadas estão em diversas aplicações técnicas devido à possibilidade de melhoria na tenacidade, ao desgaste e corrosão em altas temperaturas. Neste trabalho avaliou-se o aditivo de sinterização Nb2O5 em teores de 0,2%, 0,4% e 0,6%vol. no compósito 98,5% Al2O3 com dispersão de 1,5% de ZrO2 nanométrica. Os pós foram misturados em moinhos de bola e as amostras foram conformadas por prensagem uniaxial. Utilizou-se a sinterização convencional a 1450ºC, 1500ºC e 1550ºC por 1 hora, caracterizando-se a densidade aparente pelo método de Arquimedes e a microestrutura final por microscopia eletrônica de varredura, procurando-se avaliar o efeito inibidor de crescimento de grão da zircônia frente a possibilidade de formação de fase líquida pela adição de nióbia.

Oct 30, 2017

By Kim A. Lapakko, David A. Antonson, Jon R. Wagner

This study examined the potential of mixing rotary kiln fines (RK fines), a waste product generated when limestone is converted to lime (CaO), with acid producing mine waste to provide 1) short-term mitigation by neutralizing acid produced by iron sulfide oxidation and 2) long-term mitigation by facilitating the passivation of iron sulfide mineral surfaces. Five loadings of RK fines were mixed with 75 g of Duluth Complex rock to produce neutralization potential (NP) added: acid potential (AP) quotients of 0,0.11,0.22,0.66 and 1.1. The mixtures were subjected to wet-dry cycling laboratory testing for 585 weeks. The rock alone produced acidic drainage, with pH decreasing below 4 after about 20 weeks of reaction and ultimately reaching the approximate range of 3.3 to 3.5; sulfate release did not decrease over time. The RK fines elevated pH and inhibited sulfate release for time periods which increased with the mass of RK fines present. The pH of drainage from the 0.11 quotient (NP added1AP) loading decreased below 6.0 after 75 weeks of dissolution and decreased to 3.6 after 117 weeks, at which time the reactor was terminated. The duplicate 0.22 quotient loadings of RK fines decreased below 6.0 after 95 and 170 weeks. The former was terminated after 117 weeks, and the latter reached a minimum pH of 2.8 after 512 weeks. Drainage pH from the 0.66 quotient decreased below 6 after 581 weeks. For the drainages which acidified, the cumulative calcium release prior to pH decreasing below 6.0 was 92 to 103 percent of that initially present as calcium carbonateloxide in the RK fines. The pH of drainage from the 1.1 quotient typically remained above 8.0 throughout the period of record. Sulfate concentrations in the drainages decreased while the neutralizing fraction of the RK fines was present, but increased after this fraction was depleted.

Jan 1, 2000

The editorial expenses for the preparation of the manuscript of the second edition, as for the first, were provided by grants of the Engineering Foundation and the Open Hearth Steel Committee of the Iron and Steel Division, AIME ; the Seeley W. Mudd Memorial Fund again sponsored the publication of this volume. The companies and research or educational institutions with which the authors, reviewers, and editors are connected also contributed much to the writing and editing of this book through their generous donations of time and travel and office expenses. And finally, the authors and others have given countless hours of their own time with no recompense but the satisfaction of a job well done. In order to give credit to the companies or educational institutions which made it possible for the members of the Editorial Board to devote considerable time to the revision of this book, the names of these members and their affiliations are recorded here as follows : W. O. Philbrook, Carnegie Institute of Technology M. B. Bever, Massachusetts Institute of Technology H. B. Emerick, Jones and Laughlin Steel Corporation B. M. Larsen, United States Steel Company A number of individuals suggested desirable changes in the book before rewriting was started. Almost all manuscripts were gone over critically by reviewers, and the resulting criticisms led to the correction of errors and omissions and greatly contributed to the accuracy and completeness of the text. Other people have supplied additional data or illustrations or assisted in other ways. While some of these contributors must remain anonymous because they are not known to the Editors, the cooperation of the following individuals is gratefully acknowledged : R. D. Allen, Republic Steel Corporation, Chicago Isadore Amdur, Massachusetts Institute of Technology Mary Baeyertz, Armour Research Foundation S. P. Bahmer, Republic Steel Corporation, Massillon E. C. Bain and Associates, United States Steel Company, Pittsburgh C. W. Briggs, Steel Founders' Society of America H. W. Briske, Wisconsin Steel Works

Jan 1, 1964

By Gregory B. Poole

Data collected with 16K sampling at a variety of blasting sites (construction, quarry, trench, mine) and monitoring locations was analyzed to effectively show the 16 different 1K readings all based on the microsecond that the unit went into monitoring.

Feb 1, 2020

By John A. Allan

The subject chosen for this paper is not a new one, but the subject matter is so extensive that something new can always be said .about it. We are just beginning to realize how little is actually known about the character of Alberta coal, except for a few general facts. The object of this paper is not to explain that our previous information, in whole or in part, on the coal resources of Alberta, has been incorrect, but rather to present some new facts obtained as a result of recent study in the field and in the laboratory. As field investigation continues the problem of determining the character of a coal seam for any great distance laterally becomes more and more complex. Our present knowledge of Alberta coal deposits should not be discussed before due reference is made to those great pioneers who blazed the trails for later geologists, by recording their observations on the general geology of Alberta. Geologists, to-day, particularly those of us who are striving, year after year, to unravel the mysteries of stratigraphy, palaeontology, and structure, in so far as these are related to the coal resources of Alberta, fully realize our indebtedness to those three trail-makers, Dawson, McConnell, and Tyrrell. Had these geologists not recorded their observations correctly, nor interpreted the broad geological facts contained in Nature's book, with still uncut pages, how much slower would have been the progress of our coal knowledge in the succeeding years. It is true that many of the interpretations given to observations by these pioneers have had to be changed as a result of closer studies, but we must also expect that the geological interpretation from present day observations will be changed by future workers, as Nature's book is read and re-read.

Jan 1, 1925

By M. Streat, R. Y. Qassim

Summary This paper reviews the developments in uranium process technology as a result of modern trends in the design of ion exchange equipment. The operation of the Cloete-Streat fluidised bed contactor is described and pilot-plant development of this contactor for uranium slurry work at Imperial College is outlined. The properties of a suitable ion exchange resin for slurry treatment are discussed, together with a description of relevant rheological properties of ore suspensions. A prediction of ion exchange resin- slurry behaviour is presented in order to establish the feasible operating limits for this type of R-I-P contactor.

Jan 1, 1973

By O. S. Tinkler, K. C. Sole

Approximately 20% of current world copper cathode output is produced using a hydrometallurgical process route, generally referred to as the leach–solvent extraction–electrowinning flowsheet. Since its commercialization in the late 1960s, steady improvements in the performance and efficiency of the solvent-extraction reagents and equipment, combined with significant developments in leaching and electrowinning, have made an ever-widening range of ore types amenable to this technology. Following successful implementation on all major continents, a large proportion of growth in recent years derives from the re-emergence of copper solvent extraction in the Central African Copperbelt. This review provides a brief history of the development and evolution of copper solvent extractants and mixer-settler contactors, and the significance of the Copperbelt region in achieving commercialization and acceptance of the technology. The opportunities and challenges presented by the abundant high-grade oxide ores of the Copperbelt are contrasted with the processing of solutions derived from the low-grade mixed oxide–sulfide ore bodies that are prevalent in other geological regions. The current status of hydrometallurgical copper production in the African Copperbelt, within a global context, and a medium-term outlook for the technology are discussed.

Jul 5, 2023

By In-Kuk Bae, Kwang-suk You, Joobeom Seo, Kwanghyun Bea, Hyung-Seok Kim

Arsenic in base metal sulfide ores is highly penalized owing to high costs for its control in metallurgical processing. The arsenic element in the lead-zinc ore, which is target ore in this study, has been shown to be in the form of arsenopyrite. Experimental work in this study is about arsenic rejection flotation, using depressant suitable for the removal of arsenopyrite from the Pb concentrate. The arsenic rejection flotation also included the oxidation treatment of Pb concentrate with H2O2. In this study, the Pb concentrates containing 80.7% Pb and 0.25% as was obtained with the additions of aluminosulfate as arsenic depressant. And through IR measurement, it was also known that the addition of aluminosulfate during arsenic rejection flotation formed calcium aluminosulfate hydrates on the surface of arsenopyrite particle, resulting in rendering arsenopyrite hydrophilic.

Jan 1, 2014

By Jei Y. Choi, P. G. Shewmon

The surfrrce-diffusion coefficients (DJ for Aulg8 on (100) and (111) surfaces of copper have been determined between 1050" and 780°C using a new avuzlysis imd experimental procedure. The results are: D, has also been determined fm cua4 at 870°C, and the values found are 4.5 times larger than those measured by the grain boundary grooving technique for the same surface orientations. This difference is felt to result from the approximate nature of the mathematical solution used in the present work. Attempts to measure D, for silver on copper and silver surfaces indicated a means of matter transport different from surface diffision was dominant in moving tracer from the source out over the surface. Cnlculations and experiment both indicate that this is the flow of silver through the vapor phase which completely masks the much smaller flow due to surface diffusion. The previous self-difhsion studies of D, for silver and copper are discussed in terms of our own analysis and found to yield values of D, factors of lo5 or more greater than those found by the grain boundary grooving tech -nique. UNTIL about 5 years ago it was widely believed that the activation energy for surface diffusion, AH, , was less than that for grain boundary diffusion, AHb,, which in turn was less than that for diffusion through the lattice, AHz.' This was concluded from various evidence that D,> Db>Dl, and one tracer study of D, for silver on silver from which AH, was inferred.2 In 1959 Mullins and Shewmon demonstrated that D, could be determined from the kinetics of the growth of grain-boundary grooves.3 Using this procedure, Gjostein measured D, on copper between 800" and 1050°C and found that the activation energy was roughly equal to AHl .4 Subsequent work on copper,5" silver,',' and goldg between the melting temperature T, and 0.87 T, confirmed that AH, as determined using the grain boundary grooving or scratch-relaxation technique was equal to or greater than AHz. During the same period, Drew and Pye again determined AH, for silver on silver using a tracer techniquelo and a mathematical solution similar to that of Nicker son and arker.' Though the values of D, Drew and Pye measured at any given temperature were about 200 times smaller than those reported by Nickerson and Parker, they again found a low activation energy of about 10 kcal, or about one fifth that found at the higher temperatures with the mass transport technique. A distinguishing characteristic of these two previous tracer studies is that they have worked at low temperatures (-1/2 T,) where they felt volume diffusion was negligible and then analyzed these data as if all tracer atoms leaving the source flowed out into and remained in a homogeneous high-diffusivity surface layer of undefined thickness. This is totally different from the model used in the mass-transport studies or the studies of grain boundary diffusion, which assume the high-diffusivity surface layer to be only a few angstroms thick. If this latter model is applied to the earlier tracer studies, it is shown that the tracer has really pe!etrated into the lattice a mean distance of 1000A. Thus the tracer distribution observed after an anneal is thought to be due to the combined effects of surface and volume diffusion. Independent of the relative validity of the two models, it seems evident to us that any comparison of the values of D, as determined in these two ways is meaningless and misleading, since the values of D, and AH, obtained in these two ways would be totally different for the same physical distributions of tracer. Once the fundamental difference in the approaches of the two techniques is established, we are faced with the question of which model better approximates physical reality. Here all the evidence seems to be on the side of the ''thin surface layer" analysis. In fact, the authors of Refs. 2 and 9 do not argue for the "thick-layer model" we have described; they simply invoke it through the equation they use to calculate D, . The primary evidence for the thin-film approach is: a) grain boundary grooves and scratches widen in proportion to tU4 and Mullins' rigorous analysis shows that this is only valid for a surface layer which is quite thin relative to the width of the groove;11 b) all accepted or seriously discussed models of solid-vapor interfaces and high-angle grain boundaries assume that the disturbed region of the interface is at most a few a0 thick. With the above in mind, it was desirable to determine D, using a radioactive tracer and a "thin-

Jan 1, 1964

By D. Larouche, M. Mardan

Hot tearing is a complex defect in aluminium castings which is produced during solidification when a certain amount of liquid phase remains and weakens tensile resistance of the alloy. In direct chill casting of aluminium alloys, hot tears initiate at the surface of sheet ingots just after the primary cooling zone, where the microstructure is particularly vulnerable. In order to study the hot tearing susceptibility of these alloys, and the effect of grain refiners on their thermo-mechanical behavior , tensile tests were carried out in the semi-solid state ( ~95% solid) and at low strain rates using an apparatus called DCSS, for Direct Chill Surface Simulator. This apparatus, originally developed at Alcan Arvida R&D Centre (ARDC), is an instrumented rig test reproducing the conditions prevailing during the primary cooling stage of the DC casting process. The mechanical behavior of solidifying shells and the hot tear formation under applied tensile loads were measured and the occurrence of hot tearing was observed. Temperature in different locations of the casting, applied load and surface strain were monitored during the tensile tests conducted on aluminum alloys AA5182, AA6111 and AA3104. The microstructure of the tested samples was examined using the optical microscope to evaluate their columnar or equiaxed aspect and their effect on the mechanical response of the alloy. A special emphasis has been given to the evaluation of fractions solid existing in the castings at the start of the tensile tests, taking into account the local temperature, thermal gradient and cooling rates experienced. It was found that excessive grain refiner additions decreased the strength of solidifying shells because of the increased level of porosity induced by easier nucleation of new phases (gas included). It was also observed that cooling rates increased with the level of grain refiner, a phenomenon that was associated to the higher number of contact points obtained with small equiaxed grains. Finally, the concept of a stress based criterion for hot tearing was reinforced by the strengths obtained on not grain refined AA5182 and AA6111 showing similar fraction solid near the surface, but significantly different grain sizes.

Jan 1, 2006

By David E. Morse

Burundi, a small central African republic located between Tanzania and Zaire, remained essentially a nation of small family farms in 1978-79 with approximately 95% of the population engaged in subsistance agriculture. Coffee and tea continued as the nation's major export commodities. Mineral exports, small tonnages of cassiterite, wolframite and bastnasite, accounted for an estimated 3% of total exports in 1978 and 2% in 1979, or $2 million2 in both years. Burundi's major mineral imports in 1978-79 were cement, iron and steel, and refined petroleum products. Abnormal weather conditions, a drop in world coffee prices in 1978, and the conflict in neighboring Tanzania and Uganda in late 1978 and early 1979 combined to re-strict economic growth in Burundi during 1978-79. The gross domestic product (GDP) posted a gain of 6.7% in real terms for 1978 and an estimated 2.5% for 1979 which was significantly less than the 13.7% recorded in 1977, a time of high world coffee prices. The manufacturing and construction sectors were hard hit in 1979 by the conflict between Burundi's eastern neighbors because of transport disruptions which made building materials and manufacturing inputs almost unobtainable.

Jan 1, 1981

By Richard Havens

A flotation procedure was devised by the Federal Bureau of Mines for beneficiating Mount Wheeler, Nev., beryllium ores that contain the beryllium minerals bertrandite and phenacite in a complex association with calcite, fluorspar, mica, quartz, and other accessory minerals, The method also has proven to be effective in trials on ore from the Lake George, Colo., area. Samples used in most of the research ranged from 0.49 to 0.73 percent BeO. Beryllium mineralization varied from two-thirds bertrandite to all phenacite. An unusually high grade sample containing 5 percent BeO as phenacite was floated on a batch basis to prepare concentrate for utilization studies. The beryllium minerals were floated from undeslimed pulps at natural pH using sodium fluoride and sodium hexametaphosphate (HMP), as modifiers, and a fatty acid-fuel oil combination as the collector. Key factors were the use of a minimum of about 4 pounds of sodium fluoride and between 2 and 4 pounds of HMP per ton of ore. Efficacy of the HMP was related to the grind, mineralogical composition, corollary reagents, and type and time of conditioning. Addition of the fluoride, HMP, and collector in that order, followed by appropriate conditioning after each addition, was essential for satisfactory flotation.

Jan 1, 1961

By G. Agar

"E. Joe We have been working for some years on the elimination ofCANMET thiosulphates from solutions as a means of protecting ground water and fish streams. Alot of these thiosulphates result from the mill use of S02. Is there any possibility that thiosulphates will be generated by this process?Reply I don't know the answer to your question. I can speculate that there is no question that when one adds SO2 and air to a sulphide pulp one generates a host of unsaturated poly¬cyanates. I unfortunately cannot remember the reactions which arise in the cyanide destruction scheme. I think that if thiosulphate was generated the process wouldn't work. It is not oxidizing enough to destroy the cyanide.R. Wagner Would you comment on the actual cost/ton at the Scottie goldPamour mine concentrator? Would $2.50/ton be typical or is thisPorcupine just a ball park figure.Reply We wouldn't disclose Scottie's costs even if we knew them. I depends on the amount of cyanide and thiocyanate in the effluent. I have given you a hypothetical case. With the conditions stipulated the figures I Have given are realistic.K. Konigsmann I do not believe the use of S02 adds significantly to the thio Noranda Mines salt problem Certainly we use SO2 in many of our mills and thio-salt levels in a number of them haven't changed whether we use or don't use S02. For instance, Orchan and Matagami mills treating the same ore side by side in which one was using S02 and the other wasn't, the thio-salt level was virtually the same in both pulp streams. In the case of Brunswick where alot of SO2 is used (20 tons/day) there is a thio-salt problem but it is relatively insignificant.Reply Thank you for that comment. It serves to reassure us that we are not polluting the environment."

Jan 1, 1984

Resource rent tax is a form of taxation or royalty, which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax (APT). The implications of the current form of Additional Profits Tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine, if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of Additional Profits Tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation. Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional Profits Tax is both time and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory. A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with Additional Profits Tax. The review includes examples based on the structure of Additional Profits Tax which is levied in Papua New Guinea.

Jan 1, 1997