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By H. Lyn Bourne

This is the seventh annual tabulation of royalty information. It is also the first year in which some data have been deleted to make room for new data. The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity. However, some people incorrectly believe that the selling price and the royalty are the same thing. The contract between the owner (lessor) and the mining company (lessee) is the mineral lease. Some clauses that are common to mineral leases include: identification of property, granting clause, reservations, definitions, royalty rate, taxes and title, indemnity, termination, inspection, assignability, successors, and reclamation. There often are variations in royalty rates for a given commodity that reflect differences in location, quality, market conditions or public versus private ownership. History In the time of ancient Rome, the government owned the mining properties by virtue of conquest. It would lease the mines to favored citizens who would pay rent to the State. Various conditions of sovereign ownership of both land and mineral rights continued in Europe until the Renaissance. As the laws evolved for land ownership by private citizens, the concept that minerals belonged to the State (King, Crown, sovereign) continued until about the 15th century. Free miners challenged the notion of sovereign ownership and won the right to discover and claim minerals. But a portion of their production had to be paid to the sovereign - a royalty. So, the original concept of a mineral royalty was a tax on production that was due to the Crown or Church. The term mineral royalty, as it is known today, is a payment to the owner of the mineral rights (formerly the royal owner) for the privilege of mining and producing the mineral commodity. The owner of the mineral rights, the lessor, and the mine operator, the lessee, enter into an agreement to mine the property. The agreement is the lease. While this concept is common, there are some who do not understand that the royalty is a portion of production paid to the owner as agreed on in the lease document. This author has seen reports where the selling price of a commodity has been quoted as the royalty. ("They get 70 cents a ton royalty at their pit and the guy down the road only has a 65 cent royalty.") These reports have been authored by people not familiar with the mining industry. Lease clauses In addition to the amount to be paid the lessor, there are several other items to be addressed in the lease agreement. The following list may not be all inclusive, but briefly describes most of the common clauses any good mining lease should contain. Identification: This opening clause names the owner (lessor) and the operator (lessee), the address of each, and gives the legal description of the property. Granting clause: This part of the lease gives the time period or duration of the agreement and information about renewal periods. It also has language about the exclusive right of the lessee to mine the property. Reservations: If the owner wants to exclude any portion of the property or set some specific conditions about the operation, there needs to be a clause that describes these reservations. Definitions: This section should address some of the technical terms that the lessor may find confusing - short tons versus cubic yards, dollars versus percentage of average selling price, any escalator indices such as consumer price index or producer price index, and material mined versus material sold. Royalty: This section spells out what the royalty rate will be, how often it will be paid, if there is an annual minimum, the pay dates, and how the records will be kept. This section also describes the conditions under which the lessee is exempt from the annual minimum - natural disasters, strikes, governmental actions, or other causes referred to as force majeure. Taxes and title: The lease needs to identify who is responsible for the property taxes, severance taxes (if applicable), and other taxes that relate to the mining activity - taxes on equipment, improvements, or stockpiles. This is a good place in the lease for the owner to certify his ownership of the property and its mineral rights and also certify that no other leases are in effect. The lessees may want language that allows them to pay mortgages or other debts on the property to keep their lease in effect. Indemnity: This portion of the lease identifies that the lessee assumes the risks for lessee's mining operation. Lessor should expect indemnification by the lessee through standard insur¬ance policies - workers compensation, liability and property damage. Termination: Both the lessor and lessee want language that will allow them to terminate the lease. This section of the lease describes the conditions under which one of the parties may terminate the lease (failure of the

Jan 1, 1989

By Stanley C. Suboleski

1977 was the modern day low point for productivity in the coal industry. At that time, no one could have predicted that the industry was about to enter a productivity rise that would continue unabated through the 1980s. Thirteen years later, the cause of this phenomenon is still not well understood. While many government studies focused on the fall in productivity from 1969 to 1977, none have been undertaken to explain the rise. Some of the likely causes of the gain in productivity during this period will be discussed here. An attempt will also be made to quantify the value of some of the technical innovations that have taken place. The remainder of the gain is assumed to come from non-technical sources. The nature of these sources, although largely non-quantifiable, is also discussed. Since the number of mines that have adopted the technical innovations noted here is largely unknown, the actual contribu¬tion of technological changes to the overall productivity gain can only be estimated.

Jan 1, 1990

By Delon Hampton, Francis K. Mensah-Dwumah

INTRODUCTION The state-of-the art in the area of soil-structure interaction is not sufficiently developed that one can accurately predict the earth load distribution on buried structures. This lack of knowledge has led to the use of high factors of safety in their design and conservative assumptions for the loading diagrams. As a step towards the improvement of the design methodology for buried structures, it is important to be able to apply new analytical techniques and monitor the performance data obtained on full-size buried structures. The performance data should preferably include: 1) the actual stress distribution on the buried structure, 2) stress distribution in the buried structure and surrounding soil media, 3) vertical and lateral movements in the soil adjacent to the buried structure, and 4) deflection of the buried structure. Brown (1967), Davis (1972), Krizek, et al (1974), Krizek and MacQuade (1978), and some few others have compared the performance of full-size culverts with finite element results. Despite all these efforts, a complete understanding of the soil-structure interaction problem has not yet been fully achieved. In an effort to make improvements in the existing design procedures for buried structures constructed in an open-cut, the Department of Environmental Services (DES), Washington, D.C., in conjunction with Howard University, undertook a detailed study of Section II of the Capitol Hill Relief Sewer (CHRS). Inclinometers were used to measure lateral movements of the excavation wall and the total normal interface stresses acting on the concrete sewer were obtained using glotzl total pressure cells. This paper describes the results of the field instrumentation program for acquisition of data, their comparison with the design assumptions, and the results of a series of post-construction finite element analyses of the CHRS project.

Jan 1, 1979

By Brenda Myers-Bohlke, Tor L. Brekke

INTRODUCTION In recent years several cities in the Eastern United States have constructed subway systems in deeply weathered igneous and metamorphic rocks. Portions of these transit tunnels and shafts have penetrated zones of saprolite. The purpose of this paper is to define saprolite and discuss saprolite behavior in terms of construction and design of tunnels and shafts. Saprolites are products of in situ weathering of rock, with properties intermediate between those of soil and rock. A well-developed weathering profile can be divided into zones of residual soil, saprolite, transition zone materials, weathered rock, and fresh rock. Saprolites are distinguished by a high degree of weathering and by retention of parent rock textures and discontinuities. These structures persist as relict features because of iso-volumetric weathering (Cleaves, 1974) and formation of intergranular bonds that give cohesion to the saprolitic material. As saprolite continues to weather, the bonds are broken, causing the saprolite to decompose and disintegrate into a true residual soil mass without relict structure. Saprolites may form from igneous, metamorphic or sedimentary rocks, but are most easily recognized when derived from igneous and metamorphic rocks because of their inherent structures. The physical characteristics and properties of residual material vary as a function of mineralogic composition, structure, and discontinuities of its parent rock.

Jan 1, 1985

By A. Eftimie, M. Stanley

The World Bank Group (WBG) believes that extractive industries can make significant contribution to sustainable development and poverty reduction, providing that environmental, social, and corporate governance issues are properly managed. The WBG recognizes that stakeholders have legitimate concerns about the impact of extractive industries, and management proposals are built around the central theme that investments and policy advice in the extractive industries should lead to poverty reduction. To help governments create appropriate policy and regulatory frameworks, this paper focuses on the linkages between overarching policies and laws and the management / governance of extractive industries at the local communities. It encourages the use of new instruments designed to help ensure that local communities benefit from extractive industries.

Jan 1, 2005

By A. D. Davis

Limestone-based material shows great promise for removal of arsenic from water. In laboratory tests, it has removed more than 95% or arsenic and more than 99% of cadmium and lead. In addition, the waste material appears to be suitable for recycling or disposal in an ordinary landfill. However, the efficiency of limestone for arsenic removal could be improved. Recent research has shown that iron treatment of limestone can enhance its arsenic-removal efficiency greatly, increasing its attractiveness as an alternative to other methods.

Jan 1, 2012

By K. Pathak

Loaders and dump trucks are the most commonly used surface-mining equipment. Negligence of the safety-engineering aspects of dump trucks may result in serious accidents in a mine. A reduction in the risk of an accident due to the deployment of trucks can he achieved by engineering analysis, risks assessment, improved safety features, active safety devices, condition-based maintenance, in-built protection systems, etc. This paper presents some cases of accidents in Indian surface coal mines and advocates a systems approach to safety.

Jan 1, 1999

By I. Loomis, D. Rachmad, I. Duckworth

During the past two years the Underground Mine Ventilation Group at PT Freeport Indonesia has undertaken to upgrade their Hygiene Laboratory. This process has included upgrading equipment for dust sampling and gas monitoring, as well as procurement of an OCEC analyzer for Diesel Particulate Matter analysis. While the laboratory equipment represents one factor, these changes have also required re-evaluation of the sampling protocols and the burden of ventilation monitoring personnel. This paper provides a review of these experiences.

Jan 1, 2006

By AKIHIRO YOSHIMURA, HIDEKAZU KATO, KOTA TAKATORI, YASUNARI MATSUNO

Chalcopyrite (CuFeS2) is the most refractory copper mineral when treated in conventional sulfate media leaching systems. This is the first study to examine the use of a dimethyl sulfoxide (CH3SOCH3, DMSO) solution containing copper chloride (CuCl2) for the leaching of chalcopyrite. Leaching experiments for a copper concentrate composed mainly of chalcopyrite were conducted at ambient pressure at 313–413 K. The leaching fractions of Cu, Fe, S, Au, and As were investigated. It was found that 90% of the Cu was extracted in 2 h, and 94% was extracted in 4 h at 373 K, which is competitive with other conventional processes. A DMSO solution containing CuCl2 could selectively dissolve the valuable metals Cu and Au from chalcopyrite, but leave minerals with little economic value such as pyrite (FeS2) and As in the residue. Chalcopyrite is oxidized by cupric ion in proportion to the stoichiometric ratio of Cu in the concentrate to the initial cupric ion in the DMSO solution, which is enhanced by the presence of oxygen below 373 K.

Mar 12, 2021

By J. A. Cooper, M. R. Petersen, P. O. Jackson, J. C. Langford

The organic, inorganic, and radiological characteristics of airborne aerosols have been measured as a function of particle size in controlled atmosphere test chambers and operating uranium mines. Concentrations of benzo(a)pyrene in two mines ranged from 26 to 57 ng/m3 of air. The carbon chain length of adsorbed n-alkanes was correlated with particle size. Normal mining activities produced an ore dust aerosol with mass median aerodynamic diameter (MMAD) greater than 2 µm. The elements Na, Al, Si, K, Ca, Ti, V, Fe, and U exhibited elemental ratios similar to bulk ore and had comparable MMAD's. The S, Zn, and Pb were higher in aerosols than bulk ore and were associated with smaller MMAD particulates. Radon daughter particle size distributions were influenced by the kinds of particulates

Jan 1, 1981

By P. Christmann

"In June or July 2005, the European Commission will present its Thematic Strategy on the Sustainable Use of Natural Resources proposal to the Council and European Parliament, one of the seven Thematic Strategies to be developed and implemented under the 6th European Environment Action Programme in support of the European Union’s Sustainable Development Strategy defined by the European Union’s Head of State at the Göteborg European Council, in June 2001. The time scale for this Thematic Strategy is 25 years (2005-2030). This paper discusses some of the key issues related to the EU minerals and metals industry that needs to be addressed by the Strategy. These are: - the need for access to mineral reserves in the EU and abroad; - the need to strenghten the capacity of developing countries to sustainably promote and regulate the use of their mineral potential; - the need for an EU mineral resources intelligence capacity. There are additional important needs, which are not discussed in this paper, such as: - the need to foster further innovation in mining, ore beneficiation and metallurgical technologies; - the need to integrate and simplify the exisitng complex regulatory framework applicable to the EU mining industry and to effectively implement existing legislation."

Jan 1, 2005

By D. Malhotra

The economic viability of a mining operation depends on continuous process improvements. Diagnostic testing and plant auditing are essential useful tools to improve performance and reduce operating costs. Case studies are discussed to illustrate benefits of these techniques to improve plant efficiency.

Jan 1, 2001

By E. C. Robertson

D.G. Wilder I found the suggestion that the amount of displacement of a fault can be numerically related to the thickness of gouge or breccia to be both intuitively satisfying and intriguing. I have long agreed that there is some type of relationship between the amount of gouge and the amount of displacement of faults. I congratulate the author for developing a numerical relationship between them. However, I am concerned that the limits for applying this relationship be fully understood. An underlying assumption in this approach is that there is either a uniform thickness of gouge or breccia along a given fault or the thickness does not vary widely. Since it is not always possible to confirm this, the displacements derived by this method should be viewed with caution unless significant fault extent can be observed. At the Nevada Test Site, in drifts constructed in granite for test emplacement of spent nuclear reactor fuel, we found a fault with 0.3 to 0.4 m (12 to 16 in.) of clay gouge. Within a few meters of this location, the fault had no clay gouge, but rather consisted of a highly fractured zone with significantly altered rock and some slickensides. Based on Fig. 1, the 0.3 to 0.4 m (12 to 16 in.) thickness of gouge would indicate a displacement in excess of 30 m (98 ft). However, no gouge thickness would indicate essentially no displacement. Based on a quartz vein that terminated on the fault, and is not identified nearby, an estimated displacement of more than a few meters was made. This estimate is consistent with that obtained using the regression line proposed in the paper if the 0.3 to 0.4 m (12 to 16 in.) thickness for the gouge is used. However, using the regression curves with zero thickness would not yield results consistent with what was observed in the field. Therefore, it is important to recognize that the suggested procedure would properly yield a range of probable displacements. ? *Work performed under the auspices of the US Department of Energy by the Lawrence Livermore National Laboratory under Contract W-7405-Eng-48. Reply by E.C. Robertson It is certainly true that the t (thickness) of gg-bx (gouge and breccia) on a fault does vary along the fault. My observations have been that near the termination of a fault, the displacement d is small and the t is also small, whereas the maximum d and t will usually be found in the central part of the fault. The information on gg-bx and t of the fault found in granite in the NTS tunnel by Mr. Wilder could be interpreted somewhat differently than he does. He speaks of the fault changing within a few meters from 0.3 to 0.4 m (12 to 16 in.) of clay gg to "a highly fractured zone with significantly altered rock and some slickensides," but no gg. The highly fractured rock may be taken to be bx, rock not so finely ground as gg but still crushed by the fault movement, equivalent to the gg in my usage, and probably occupying about the same t. Mr. Wilder's estimates for the fault in the NTS tunnel for t of 0.3 to 0.4 m (12 to 16 in.) and for d of a quartz vein, in excess of "a few meters," would place the point on the low side of the central trend line in my Fig. 1, at the lower limit. There is, of course, a problem with determining d using displacement of only one planar surface. It would be greater or lesser depending on the rake of the movement. Finally, estimating the d of a fault from its t should be made with awareness of our present uncertainties, as pointed out by Mr. Wilder. Although the central trend line in my Fig. 1 has a ratio of d/t of 100, I have put the limiting ratios at 10 and 1000. Understanding of the values of the ratio will be improved only with collection of more data, for which the discussion of Mr. Wilder is much appreciated. G.C. Waterman E.C. Robertson's paper provides significant information to a geologist attempting to deduce fault offset by noting the products of structural dislocation. However, considerable mapping in underground and open-pit mines, and examination of structures produced in different geological settings, have convinced me that gouge and breccia thickness are controlled by geological conditions and fault movement. The following paragraphs suggest geological variables that control them. 1. Depth of Loading A near-surface fault resulting from tensional stress has more breccia/gouge than is produced by a similar stress at considerable depth. A deep-loaded compressional stress may produce a linear zone of schist, or structural dislocation may occur along an earlier formed belt of schist. Such "shear zones" are common in Canadian mines in precambrian rocks. In neither case can offset be directly deduced by an analysis of the minimal gouge/breccia in the shistose rocks. At greater depth, stress may be partially to wholly relieved by flowage. I vividly recall first noting the regional "Midas Thrust" in the Lark mine, Bingham Mining District, UT (where we called the structure the North Fault). My recorded notes, as I remember them, showed a narrow gouge streak separated the `Jordan" and "Commercial" limestone units from impure, muddy limestone beds of uncertain stratigraphic position. The visible structure did not indicate the great importance of this premineral fault

Jan 12, 1984

By M. E. Kuchta

Research is currently being conducted at the Colorado School of Mines in the use of high-pressure water for scaling down loose rocks in underground mine openings. In addition to improved miner safety, the adhesion strength of shotcrete applied to rock surfaces treated with high-pressure water is also increased significantly resulting in improved overall support capabilities of the shotcrete layer. Test results show an increase in adhesion strength by a factor of four on a concrete test wall cleaned with water at 21 Mpa (3000 psi) as compared to a surface cleaned at 0.7 Mpa (100 psi).

Jan 1, 2002

By J. Kretschmann, N. Nguyen

"The Vietnamese economic growth of more than 5% per year leads this country to an enormous demand for raw materials. In the duration of ongoing expansion, the big challenge in the coming decades will be to make this process as sustainable as possible when it comes to economic, environmental and social objectives. Risk management especially in occupational safety and health (OSH) in enterprises is one of the most important tools to achieve this aim. But until now, this has not been taken into priority by Vietnamese coal mining enterprises. Main reasons for this situation can be found in deficient legislative conditions and in non-synchronized risk management systems. In contrast, Germany has implemented an adequate legal system and the German mining industry has gained lots of experiences in risk management, especially in occupational safety and health. This paper seeks to point out specific challenges how to improve occupational safety and health in Vietnam by transferring and applying German methods and standards."

Jan 1, 2011

By J. M. Mutmansky, Y. J. Wang

The usual method employed to determine the direction of flow in a connecting airway in advance is to conduct a survey between the two existing nodes being connected by means of the new airway. It is then assumed that airflow will take place from the node with higher pressure to the node with lower pressure. The purpose of this paper is to examine this direction-of-flow problem -- using properties of the system characteristic curve for a two-terminal network -- and specify some conditions that ensure that flow will take from the higher-pressure node to the lower-pressure node. It is concluded that the only requirement is that all characteristic curves of fans in the network should be strictly decreasing. Five numerical examples illustrate some important properties of the direction-of-flow problem.

Jan 1, 1999

By K. S. Gritton

The implementation of advance control systems brings with it the expectation of improvements in process performance and controllability. Specifically, expectations include a shift in the mean value of the gross measure of process performance, and/or a decrease in process variability. When determining statistically-defensible measures of these benefits care must be taken to preclude process parameters from biasing the determination. Specifically, the effects of ore type, shift personnel, water availability, etc., must all be separated from the effect on performance of the advanced control system. Methods are presented for separating the effects of process control from other process parameters. Examples of the required data analyses are also presented.

Jan 1, 2001

By Charles C. Dahl, Gordon C. Presley, Andrew E. Nevin, Bruce A. Kennedy

How does SME-AIME cope with profound changes in technology, markets - and most importantly - in employment patterns facing its membership today? This is the question that prompted the Society's Board of Directors to appoint a Long-Range Planning Commission (LRPC) (see ME, Feb. 1984, pp. 118 and 128). This is also the question addressed most particularly by the LRPC's Scope Committee. The Committee started its deliberations by asking such basic questions as "Who are we?" and "What is our business?" The Scope Committee then reviewed the findings and recommendations of other more specialized committees to develop and integrate their concepts of the Society's business for the next 10 years. The policy-making suggestions of the LRPC were reviewed and acted upon by the Board of Directors at its open meeting in Los Angeles on Feb. 26, 1984. At the Oct. 23-26, 1984 SME Fall Meeting in Denver, the Board will again review LRPC recommendations. In answer to the question "Who are we?" the Scope Committee proposed description, which was accepted by vote of the board of directors: . . A technical and professional organization that consists of individual members, namely those mining engineers, metallurgists, geologists, earth scientists, economists, managers, educators, and other professionals concerned with all facets of exploration, production, distribution, and using of mineral commodities. "These mineral commodities include all metals; industrial minerals, including construction materials and fertilizers; coal, oil shales, tar sands, and other mined fuels. Among the earth's mineral resources, only wellpumped oil and gas lie outside the Society's specific purview. "Traditionally, SME members work in the fields of engineering, technology, exploration and discovery, development, construction, mining, quarrying, beneficiation and processing, handling and transport, equipment manufacturing, sales and marketing, data processing, safety, land reclamation, environmental protection, taxation, administration, and management of these elements. "Members practice their professions in industry, in universities and research institutions, and in government. They may be operators, manufacturers, sales persons, contractors, consultants, analysts, researchers, educators, advisors, regulators, or members of supporting staffs. "The members of the Society are leaders in dedication to their crafts, in innovation, and in the pursuit of excellence. Among their numbers they count the most distinguished of engineers, applied scientists, and managers. "The Society is based in the United States, is active on a worldwide basis, and is open to nationals of any country. Certain qualifications must be met for attaining and maintaining membership." Purpose of the Society As to the question "What is our business?" the Scope Committee restated our purpose in light of current practice and the constitution of AIME and the bylaws of AIME and SME. The Board of Directors accepted the following proposed purpose of SME: "To further the professional development and well-being of its members by publishing and distributing technical writings, news, and information; by sponsoring meetings of members; by providing forums for discussions and for continuing education; and by fostering communication on the subjects within its purview. "The Society assists educa-

Jan 4, 1984

By A. Steinmüller

Introduction In the design and operation of gravity concentration circuits, the application of process models for spiral concentrators offers significant benefits. A substantial amount of work has been produced over the last 30 years in the field of modeling the metallurgical performance of spiral concentrators. It is not the aim of this contribution to add to the refinement of modeling technique but to share some of the experiences and potential improvements which can be achieved in a relatively simple way. The design of spiral circuits usually requires extensive testing. This is often conducted in batch operation only, either due to lack of suitable continuous testing facilities, the unavailability of sufficient quantities of sample, or other constraints. Typical problems arising during circuit development from batch testwork are the extrapolation of results to different feed conditions, and resolving of internal recycles. Model selection and development The classic approaches in spiral modeling technique range from fundamental fluid dynamics, based on the Navier-Stokes equations in combination with expressions for local slurry properties, to fully empirical and statistical models. With the initial objective of developing an in-house tool for gravity circuit optimization and development, mathematical model types from each category, available either commercially or in the published literature, were evaluated. Model selection For the desired purpose, an approach proposed by Holland-Batt (1990) was found suitable, which was adopted and modified. Holland-Batt reported that the shape of release curves in spiral applications could be described by a combination of a linear function in the initial recovery zone, and a power law function outside this zone. The proposed recovery function was formulated as

Jan 1, 2005

By Stephen Phillips, Luigi P. Gonano

Vertical circular shafts have been proposed for multiple access to high level nuclear waste deep geologic repositories. Shaft construction is a critical path item in the commissioning of a repository. Other constraints on the shaft design and construction criteria include the lack of design precedence for long term performance and the importance of minimizing rock and groundwater disturbance. A comparative evaluation of conventional and mechanized shaft sinking techniques is presented in the context of the particular geologic and design constraints. Technical and non-technical factors for blind drilling, blind boring, raise-reaming, drill-and-blast and ream-and slash methods are reviewed for typically "hard rock" and "salt" type repository sites. Appropriate shaft designs are developed, the suitability of each method to the particular requirements evaluated and construction costs and schedules determined. The explicit appraisal of the significant design factors for each method serves as a rational basis for the preliminary selection of the most suitable sinking technique for a particular set of site/design conditions.

Jan 1, 1983