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By J. D. Jones

The geographic occurrence of economic mineral deposits presents a variety of problems in modern tailings disposal operations. This paper presents case histories in several sectors of the mineral industry as well as the several stages of operations planning required for new designs, system expansion, reactivation of abandoned systems and upgrading to present environmental standards.

Jan 1, 1978

By Gary Walters, Matthew White, Thomas W. Gonzales

The copper smelting industry has transitioned into the 21st century compliant with environmental regulations, new smelter installations and brown field expansions. The industry faces new challenges as copper in concentrate grades have decreased while contained impurities have increased. A new benchmarking survey was undertaken to update the last survey of 2016 for operating copper smelters in the world. The information collected was separated based on primary smelting technology rather than by geographical location and supplemented from published literature. Each smelting technology’s unique use of specialized process equipment, concentrate smelting capacity, and impurity flexibility are discussed INTRODUCTION The 20th century was a remarkable time for the growth of copper smelting. Electric, blast and reverberator furnaces dominated the smelting technology well past WWII. In the 1970s, SO2 regulations and high energy cost drove the development of new primary smelting technology. Technological advancements decreased energy consumption and enriched sulfur dioxide concentrations of the process off-gas to levels where sulfur capture in sulfuric acid plants was economically viable. The new smelting technologies began to replace reverberatory and electric furnaces starting in the late 1940s. A new paradigm in copper smelting was established and the enabler was then Outkumpu’s® flash smelting technology from the 1940s through to today. Now, Outotec had become the dominant primary smelting technology with over 44 copper flash smelting furnace installations world-wide. Figure 1 shows the historical installation statistics of primary smelting technologies over the last 70 years (ICSG 2018). The dominance and acceptance of the Outotec® smelting technology from the 1940s to current can be seen. Isasmelt® technology for copper was introduced in the 1970s and did not see advancement in new installations until the 1990s through today. Isasmelt® has 12 world-wide copper furnace installations to date. Mitsubishi® also introduced continuous smelting and converting technology in the 1970s, but had no new installations until the 1990s with a total of 5 copper smelters. Outotec Ausmelt® smelting technology had 3 installations in the 1990s and totals 10 furnaces. Most recently the Chinese technology of Bottom Blown and Submerged Lance Smelting began commercial operations in 2005 for total installations of 11, mostly in China. Other technologies, such as, El Teniente, Noranda, Inco, and Vanyukov furnaces have contributed to the overall global smelting capacity, but have not penetrated the smelting industry to challenge the existing dominant smelting technologies. The technology distribution in Figure 1 also shows flash smelting technology for sulfide concentrate domination untill 2000, bottom blow technology has become the preference in China. Currently, China is the only country building new smelting capacity. Isasmelt® technology also seen a large increase in installations in the current decade.

Jan 1, 2019

By R. C. Snider

The Roy Lloyd Mine in northern Saskatchewan is a high-grade underground gold mine which is currently supplying ore to Golden Band Resources Inc. (Golden Band)?s Jolu mill. Prior to the operation of the mine, an underground exploration program was conducted intermittently at the site. During both the underground exploration phase and mining, Golden Band has implemented water recycling to reduce freshwater usage within the mine in order to address concerns over the potential for impacts associated with freshwater usage and to reduce the volume of effluent discharged from the site. Golden Band initiated an underground exploration program at the Roy Lloyd Mine site (formerly called the Bingo Project) in October 2007 to better delineate the mineralization of the Bingo gold deposit. The exploration program provided geological information required in order to improve the confidence level of the geological resource model and also provided information to aid in the mining of the deposit, such as the determination of groundwater inflow rates. Underground production mining started in March 2011. This paper provides an overview of the mine water recycling methods implemented at the site during both the exploration and initial mining phases of the project, and the success/drawbacks of these measures to date, including the potential cost savings in the form of reduced treatment and monitoring costs inherent in a reduction of the volume of effluent discharged from the site. The paper will also discuss options that are currently being evaluated in order to further assist Golden Band?s ability to recycle water and reduce the volume of effluent discharged to the environment, while ensuring effluent discharged from the site to the environment meets criteria.

Nov 1, 2011

By M. Roy, Y. Roux, R. McIvor

"La Compagnie Minière Québec Cartier at Port Cartier. Quebec, utilizes six parallel wet grinding open circuit ball mills to grind iron ore concentrate for the pellet making process. In an attempt to improve grinding efficiency, a mix of 605 25 mm (1 in.) and 405 38 mm (1 ½ in.) grinding balls was charged to mill D while the opposite mix was used in all the other mills. Because media costs were higher for mill D, it was necessary to find out if the smaller balls provided a net economic benefit. Therefore, a test program was undertaken to determine the relative efficiency of the charge in mill D compared to the other grinding mills. Mill F was chosen for comparative efficiency measurements.The first problem was to choose a suitable definition of grinding efficiency. In management's view, previous attempts to quantify milling performance using population balance modelling were ineffective because they were unable to relate breakage rate functions to grinding circuit economical in any meaningful way. Work index analysis was also not favoured because of a number of complicating effects, including the fineness of the feed and product streams and open circuit grinding.It was decided to adopt a recent innovative approach which had been successfully applied to closed-circuit ball milling. For ""functional performance analysis of ball milling"" (McIvor et al., 1990; McIvor et al., 1991), a size criterion is first chosen to define ""fines·' and ~'coarse particles"". In this case 45 microns (325 mesh) was chosen to distinguish fines from coarse material. The relative grinding efficiency of each ball mill environment would then be ~e cumulative grinding (disappearance) rate of coarse (plus 45 nucrons) material per kilowatt hour of energy applied to the coarse material in the mill, divided by the grindability (measured in the laboratory) of the coarse material in the mill feed.Because the disappearance rate of coarse particles is also the production rate of fines, the following equation can be written for the efficiency of the mill environment, Effe, as defined above:"

Jan 1, 1994

By Laxman M. Amaratunga, David N. Yaschyshyn

"In the mining industry several types of fills are used for backfill operations. They are broadly categorized into three basic types: rock fill, hydraulic/slurry fill, and paste fill. Recently, paste fill has become the popular alternative for backfilling because of its many environmental and operational advantages including its ability to use total tailings, both fine and coarse fractions.Amaratunga and Annor (1989) first presented the concept of agglomeration of fine tailings, which are otherwise excluded from backfilling, for utilization in backfill as a readily available supplementary fill material. Previous experimental work investigated the use of agglomerated fine gold mill tailings in low density slurry fills (60 -70% pulp density), consisting of varying agglomerate and tailings compositions.This paper presents the ongoing research into utilizing these agglomerates in a high density paste fill (70 -85% pulp density). Various binder dosages, curing period and combinations of pellet to tailings ratios were studied. Slump of the raw fill and compressive strength of the cured fill were examined. Results from the above study indicate that agglomerated tailings paste fill (ATPF) has superior strength characteristics when compared to total tailings paste fills.IntroductionThe Canadian mining industry produces more than 500 million tonnes of tailings and waste rock annually. These tailings consist of a coarse fraction and a fine fraction and can be either reactive (acid generating) or non-reactive. Most mining operations utilize the coarse fraction for backfilling while the fines have been traditionally disposed of in surface tailings ponds. Recently, paste fill has been developed which uses a fraction of the fine tailings (10 - 30% w/w of >45 µ,m) in the fill. This development allows a mining company to use a portion of the fines for backfill, but still requires surface impoundment of the unused portion of fine tailings. Reactive tailings have the added problem of generating acid after being oxidized in the presence of air and water. Treating acid mine drainage (AMD) seepage from these ponds has proven to be a costly environmental problem and long term liabilty.One practical method to reduce the environmental impacts associated with the tailings pond and to modify the physical and chemical properties of the fine mill tailings so that they can be utilized and disposed of in an environmentally safe manner through surface or underground applications is through agglomeration using the Cold-Bond Tailings Agglomeration technology (CBTA). Amaratunga and Annor (1989) first presented the concept of agglomeration of fine tailings for use as coarse aggregates for underground backfill, gravel or surface covering material. CBT A reduces the necessity of impounding tailings on surface while providing a suitable coarse aggregate resource material for practical use. Although the CBT A technology has been mainly limited to pelletization agglomeration alone, other forms of agglomeration like pressure agglomeration which include the techniques of briquetting and extrusion have also proven successful (Amaratunga, 1995)."

Jan 1, 1996

INTINERARY ?What is SRI? ? How do we define good corporate social and environmental performance in the mining and petroleum industries? ? Why should you care? MJRA Inc. ? Established in 1992 ? Canadian Social Investment Database (CSID) launched in 1993 ? Jantzi Social Index launched in January 2000 ? created in 2000 SRI is ?the incorporation of social and environmental parameters into the investment decision making process.

May 1, 2002

By D. Doyle, T. Cienski

"This paper presents and discusses the results of a detailed study conducted on the subject of energy consumption in the comminution of industrial minerals. The study was based on pilot circuit testing, plant operating data collection, detailed equipment data and literature research. The areas covered by investigations include: high efficiency classification; air classifiers for cement grinding circuits; grinding aids in dry grinding; and dry grinding circuit control based on particle size measurement. Results obtained indicate a large potential for the reduction of energy consumption, in particular in the cement clinker grinding circuits. Better classification techniques and correct application of grinding additives can significantly reduce power used per tonne of product and also substantially increase grinding circuit output."

Jan 1, 1992

By R. C. Bryce, G. S. Martin

"Aur Resources Inc. is the operator of the Louvicourt Mine located 40 km east of Val d'Or. Quebec. Les Entreprises Minieres Redpath Limitée a member of the 1.S. Redpath Group of companies was contracted to construct two vertical mine shaft collars in deep overburden.During the spring of1991 two vertical shaft collars were established in wet, running sand that was in excess of20 m deep. This paper will illustrate the engineering and construction techniques used in establishing these collars and the methods used to overcome the various obstacles that occurred during construction.IntroductionThe Louvicourt copper/zinc/gold/silver deposit is located 40 km east of Val d'Or, Quebec, is adjacent to the former Louvern Mine which operated at depths of 40 m to 850 m below surface (Fig. 1). This deposit was discovered in mid-1989 as the result of systematic exploration and diamond drilling based on a geological model. The Louvicourt project is operated by Aur Resources Inc.The property is being developed to produce 4000 tid with an anticipated life of just over 17 years. Mill start up is scheduled for July 1. 1994, commercial production October I, 1994, and full production by late 1995. The current production plan provides for 24 040 (XX) t averaging 3.89% copper, 1.95070 zinc, 0.039 oz gold per tonne and 0.99 oz silver per tonne, to be mined."

Jan 1, 1994

By R. A. Elliott

This paper describes the development of an infra-red ore dryer at the Mines Branch. The dryer utilizes an infra-red heat source mounted over a stainless-steel belt to dry ores and concentrates of varying particle size and moisture content. It has been found to ?be successful in meeting Mines Branch requirements of minimum dusting loss and ease of cleaning to decrease ,contamination between various batches of dried products. It is described with the hope that it might .prove useful in other laboratories where there are similar problems. It might have an application in the drying of concentrates containing high values where dust losses would result in a considerable loss of revenue; also for small batches of material or an intermittent drying problem.

Jan 1, 1958

By M. P. Amsden

"Ecstall Mining is a wholly-owned subsidiary of Texas Gulf Sulphur at Timmins, Ontario. The mill tonnage is 10,000 tons per day of two different ores, a copper zinc ore and a silver lead zinc ore, producing about 2400 tons of concentrates per day. These are as a copper concentrate, a high silver zinc concentrate, a low silver zinc concentrate and a silver-lead concentrate. For flotation recovery a very fine grind is required, about 80% minus 325 mesh and the concentrates produced are 40% minus 10 microns.The thickened concentrates are pumped to the filter floor for filtering and drying. The filtering and drying section is separated from the flotation section by a wall and is controlled from a dryer control room by one operator.Two operating panels are located in this control room. One contains stop-start controls for the thickeners, filter motors and vacuum pump motors, and stop-start controls for dryer feed conveyors and dryer product conveyors to concentrate load-out bins, as well as ammeters for conveyor drive motors. Dryer throughput is regulated by Merrick Type L weightometers located on the dryer discharge conveyors and recorded on tons per hour strip charts.The second panel contains the temperature strip charts, furnace drive ammeters, scrubber and exhaust gas controls, burner controls and panel alarms for the four dryers.Filtered concentrates are dried in Nichols-Herreshoff, multiple hearth, dryers consisting of nine hearths (zinc) and seven hearths (copper and lead). There are two dryers for handling zinc concentrates and one each for copper and lead concentrates. The dryers are heated by burning natural gas. Each zinc dryer handles 1,000 t.p.d. and the copper and lead dryers 750 t.p.d. each.Multiple hearth dryers are unusual in the base metal mining industry and the reasons for selecting them in preference to rotary dryers are as follows:1) The concentrates could only be filtered to 15 to 17 percent moisture. These sloppy filter cakes would be extremely difficult to handle in rotary dryers."

Jan 1, 1972

By W. A. Grell

"The oxygen meter has been in use at MacLeod Cockshutt Gold Mines for over a year, At MacLeod about 200 tons per day of reground concentrate containing roughly 10% pyrrhotite and 20% pyrite is cyanided in four 181 x 18' Dorr agitators. A survey by the Department of Mines showed that oxygen content of some of the agitators was rather low. Experience with our oxygen meter indicates that the oxygen content must at times have been too low for good gold dis solution.We have found that in winter, when pulp temperatures drop to about 50° F, oxygen saturation in the agitators is not difficult to maintain. In summer, however, when pulp temperatures rise to 70or 75°F, the oxygen content will drop very readily. It was found that a high oxygen content can be maintained readily if the pulp is sufficiently dilute. Thus at 50° F, a pulp of specific gravity 1. 75 i.e., about 55% solids, will saturate; but at 70 or 75° F, the specific gravity must be decreased to 1 .45, equivalent to about 40% solids, in order to maintain saturation. Very thick pulps, such as thickener underflows, are noticeably difficult to saturate in the laboratory, and lose their oxygen rapidly.Clear solutions, on the other hand, absorb oxygen readily and hold it. The primary thickener overflow, before agitation, is 100% saturated; after storage of 3 to 4 hours it is still 100% saturated at re clarifier tank. Barren solution after spraying in a launder is 100% saturated.We have not yet attempted to determine what percentage saturation is necessary for good extraction, but it is known that there is a point at which extraction decreases rapidly. So far, the measures required to maintain over 80 or 90% saturation have coincided with measures required to hold the reducing power to the point believed necessary."

Jan 1, 1964

By C. Jay Hodgson, Adrienne C. L. Larocque

The Mobrun VMS deposit in northwestern Quebec does not fit the classic Noranda type model, but exhibits characteristics more consistent with a Mattabi-type deposit. The orebodies are underlain by fragmental volcanic rocks indicative of explosive volcanism in shallow water. Felsic volcanic rocks are more abundant than mafic rocks. Alteration assemblages comprise chlorite, carbonate, sericite, and quartz. Broad semi-conformable alteration occurs high in the footwall to the 1100 lens. Mobrun occurs higher in the stratigraphic sequence than most of the other deposits in the Noranda camp. In this part of the stratigraphy, zones of pervasive carbonatization may be more useful guides for exploration than zones of silicification.

Jan 1, 1993

By X. J. Guo, Q. K. Wang, S. P. Zhong

With depletion of traditional clean copper reserves and fast expansion of the global copper demand and smelting capacity in the past decade, more and more copper smelters have to treat copper concentrate with increasing content of complex arsenic-bearing minerals. Developing economically viable and environmentally reliable methods and approaches for arsenic control in copper smelting has become more critical for sustainable growth of the copper industry. This paper will report the recent effort of Zijin Mining Group Ltd. in developing processes for improving arsenic control and management in the Zijin Copper Smelter. The arsenic distribution and balance data for matte smelting, converting and refining operations in Zijin Copper Smelter is reviewed for understanding of the current challenges in arsenic control. The processes developed for treating the arsenic bearing waste acid bleed stream from the smelting-converting off-gases wet cleaning circuit and the arsenic sludge produced in the refining electrolyte purification circuit for arsenic disposal are discussed. INTRODUCTION With fast expansion of the global copper smelting capacity to meet the world copper demand and depletion of traditional clean copper reserves, more and more copper smelters have to treat copper concentrate with an increasing content of complex arsenic-bearing minerals. China is the world largest copper consumer and also has the largest copper smelting and refining capacity, but majority of its smelting capacity relies on supply of imported copper concentrate. In order to meet the increasing copper demand and ease the tight supply of clean copper concentrate, the Chinese copper industry has to look at the domestic opportunity of developing non-traditional copper resources, specifically those of lower grades, more complex mineralogy, and increasing level of deleterious elements especially arsenic and also process imported copper concentrate with increased arsenic content. Due to a significant and growing environmental issue associated with arsenic contamination, developing economically viable and environmentally reliable methods and approaches for arsenic management and control in unlocking the maximum value of such arsenic bearing copper resources has become more critical for sustainable growth of the industry.

Jan 1, 2019

By William H. Emling

With profitability pressures in heavy industry increasing, many producers are turning to predictive maintenance as a means of harvesting untapped value from their production assets. Corporations are losing their maintenance and processing core competencies through attrition. As capital budgets are being trimmed, manufacturers are consolidating operating units into fewer, more profitable routes. Maintenance functions, however, typically receive low priority when investment is made, since many companies consider maintenance costs as ?overhead?. Condition-based monitoring, integrated to Level I and Level II process inputs, is seen as the most cost-effective solution to the implementation of predictive maintenance strategies. This paper will review the evolution of preventive and predictive maintenance programs, highlighting examples of successful application of integrated condition monitoring.

May 1, 2001

By Damian Connelly

The option to leach iron from low grade copper concentrates could reduce transport costs and significantly improve the saleability of the concentrate. In addition, it reduces smelting costs and can remove undesirable impurities. The trend to produce cleaner and higher grade copper concentrates is very appealing to the smelters. A recent copper project came on line and there were three serious deficiencies which were not identified in the feasibility study. This came as a surprise and resulted in a number of projects to investigate ways of rectifying the problems in the shortest timeframe possible and using minimal new capital. The first serious issued not identified when commissioning was the lower than expected copper recovery, which was 70% compared to a predicted recovery of 80% to 87% in the feasibility study. This required investigating new flotation reagents and incorporating controlled potential sulphidisation. The second serious issue overlooked is the presence of significant amounts of talc minerals (insol) in the ore which are naturally floatable. This leads to lower concentrate grade and attempts to remove the talc resulted in lower copper recovery. Smelters have limits on the amount of talc in concentrate because it produces viscous slags and difficulties for the smelter. It also incurs higher transport costs. The third serious issue not identified in the feasibility study was the high arsenic reporting to the concentrate. Arsenic is a penalty element for smelters and at levels exceeding 0.3% the smelters may reject the concentrate. Arsenic is a problem environmentally for copper smelters and penalties apply when it is high. This paper describes the options for penalty element removal and suitability to incorporate into the modified flowsheet. It also highlights where the geometallurgy was not properly addressed and how these surprises could have been avoided. INTRODUCTION From 1970 to 1985, a copper company undertook metallurgical testwork on the Peruvian project copper ore. The ores were mined underground and treated over many years previously. Various other groups undertook studies and work until Aker Kvaerner undertook a feasibility study in 2006. Three ore composites were tested and grind-recovery relationships were developed. The feasibility study testwork identified that talc was a possible concern and will have an impact on copper concentrate grade. This was to be managed by blending. The current operating reality is that there is so much talc in the ore body it is not possible to blend it out. There was far more emphasis on molybdenum recovery. No mention was made of arsenic issues other than blending. There was a Concentrate Leach Study and a Molybdenum Hydrometallurgical Plant Study but these options did not proceed to a final flowsheet. A Scoping Study in 2006 looked at a Heap Leach project. The heap leaching gave very poor copper recovery on the sulphide ore. Heap Leaching was evaluated and tested for the high talc and high arsenic ore but recoveries were poor. The Aker Kvaerner feasibility study opted for a simple primary crush SAG/ball grind followed by flotation and sale of a concentrate. This is the current flowsheet utilised and the scale of the project is very large based on processing 117,200 tonnes of ore per day. A feasibility study does not guarantee success and the deviations from the feasibility study suggest there is a lot of technical work required to improve the current metallurgical performance.

Jan 1, 2019

Objectives ? New deposits can be found in mature Mining CampsNew Camps ? Volcanogenic Massive Sulfide (VMS) deposits ? polymetallicpolymetallicexamples are desirable exploration targets examples ? Genetic and exploration models for VMS deposits are robustrobust ? subtle but important differences exist between deposits and districts ? sometimes ??neglectedneglected??in resource modeling and exploration efforts ? ReRe-evaluation of a prominent existing camp is rewarding ? update on the exploration strategies currently being applied on a practical level The Falconbridge-Alexis approach includes GoCAD modelling

May 1, 2006

By J. R. Johanson, A. W. Jenike

"A solid flows out of a bin provided that the outlet is sufficiently large so that stable obstructions to flow do not develop. The geometry and surface finish of a bin and the construction of the feeder determine the type of flow pattern which then develops within the bin. The pattern, in turn, affects the uniformity and consistency of the stream, segregation, caking, degradation, live capacity and the action of level measuring devices.In most bins now in operation, material flows toward the feeder through a channel which forms within the stationary solid. This is referred to as funnel flow. If the hopper of the bin is sufficiently steep and smooth and the feeder capable of drawing material across the whole area of the outlet, all the solid flows whenever the feeder is in operation; this is referred to as mass flow. Mass-flow bins are usually far superior to funnel-flow bins; their initial cost is also usually higher.The paper describes the design criteria used in deter-mining the minimum bin outlet needed for flow and the bin geometry needed for mass flow."

Jan 1, 1970

By Scott D. Long

"Abstract-Grass roots exploration has an emphasis on good precision at low (sub-economic) concentrations of an element, in order to identify "anomalies" which may lead to drilling targets. Although it is wise to have well-defined quality controls in place during early stage sampling, the control procedures at this stage tend to be rudimentary. When a deposit warrants detailed delineation, the need for accurate geological characterization and assaying of ore-grade rock must be supported by appropriate quality control procedures.As a project returns more promising results, and the likelihood of the project warranting a prefeasibility study increases, it is time to tighten quality assurance requirements and quality control protocols. Delays in instituting adequate quality control and verification procedures may lead to costly remedial actions that can also delay completion of the prefeasibility or feasibility study. Sometimes, as a project matures, the quality control and quality assurance aspects fail to keep pace with the changing nature of the work: an increasing emphasis on precise and accurate assaying of oregrade rock.A resource model is like a house of cards. The foundation of the house is the geological observations, the sampling methods and the geological interpretations performed upon those samples. Upon the sampling, which includes all the sub-sampling steps of sample preparation, rest the assay results. The quality of the assays can be no better than the quality of the sampling. Good assaying technique will preserve all biases and imprecisions introduced during sampling and sample preparation; it cannot remove them. If the sub-samples and/or assays are bad and must be redone, all the succeeding levels of the house of cards must also be rebuilt, or at least patched up.From geological observations, a geological interpretation is built, the quality of which is critical to the construction of an acceptable resource model. Geological elements are difficult to assess, and are not discussed here; they are dependent upon the expertise of the geologists involved. Geological knowledge contributes essential quality control elements to resource/reserve determinations (Sinclair and Postolski, 1999; Postolski and Sinclair, 1999).This paper consists of five sections: (1) overview of quality control protocols, (2) maintaining quality control of databases, (3) quality control of drill sampling, (4) optimizing crushing and grinding requirements, and (5) quality control of assay data acquisition."

Jan 1, 1998

By L. Xia, B. Hart, K. Douglas1, S. C. Chelgani

Development work to optimize a flotation flowsheet for rare earth element (REE) recovery is underway. The original approach used alkyl phosphates and phosphoric acid ester as collectors to concentrate REE minerals. To improve REE recovery, hydroxamates as alternative collectors were investigated. In this paper, micro flotation of REE minerals using salicylic, benzoyl and naphthoyl hydroxamates is reported. Unlike phosphonic collectors, slime removal does not show a significant effect on REE recovery when using hydroxamates as collectors. Among the three hydoxamates, the grade of La, Ce, and Nd for concentrates produced by salicylic hydroxamate is the highest. The recovery response with naphthoyl hydroxamate is similar to that of salicylic hydroxamate; good grades for La, Ce, and Nd, less effective for Nb, Y, and Zr. The data indicated an affinity by salicylic and naphthoyl hydroxamtes for LREE over the HREE minerals. In comparison, benzoyl hydroxamate indicated an affinity for Nb, Y, and Zr. Temperature effects on REE recovery were also studied. The grade and recovery of REEs generated by flotation using a mix of salicylic and benzoyl hydroxamates at room temperature was almost identical or even better relative to the recovery using naphthoyl hydroxamates at elevated temperature.

Jan 1, 2014

By Robert B. Parsons

"On August 8, 1989, the Minister of Finance released a technical paper which sets out many of the details of a proposed 9% federal value-added tax to be called the ""Goods and Services Tax"". The GST, which is scheduled to be implemented with effect from January 1, 1991, will affect all Canadians in different ways and to varying degrees. The mining industry itself should, by and large, benefit from the new tax.IntroductionOn January 1, 1991, it is proposed that the existing federal sales tax will be replaced by a new sales tax - the Goods and Services Tax (GST). GST will be leviedat a rate of 9% on most goods and services consumed in Canada.How it will WorkThe GST will be a tax on the final consumption of goods and services. It differs from a retail sales tax in that it will be collected throughout the production and distribution chain. However, the net effect of the tax paid on a particular good or service will be equivalent. The example above (next column) illustrates the application of the GST to the production and sale of a chair.Illustration of GST for a ChairEssentially, the total tax will equal 9% of the sale price to the final consumer. However, GST will be collected on the value added at each stage of the production and distribution chain . What will be TaxedVirtually all goods and services will be taxed. Items on which GST will not be charged fall into two categories: tax free and tax exempt."

Jan 1, 1989