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By H. Lyn Bourne

This is the ninth annual tabulation of royalty information. Again this year, some of the older information has been deleted to make room for more than 30 new entries. Several articles and publications crossed the author's desk this past year that relate to mineral valuation and mineral royalty. Tom Loucks presented a paper, "The Valuation of Hard Rock Mineral Property," at the Rocky Mountain Mineral Law Foundation in Santa Fe, NM in July, 1990. His paper gives an indepth explanation of the definitions and concepts related to mineral valuation. It includes descriptions of numerous legal cases that have dealt with mineral valuation and proper reference is given for each case. Loucks works for the Denver Mining Finance Co. Gold royalties generally range from 5% to 7%, net smelter return. However, Severn Brown sent information that shows a much wider variation. Echo Bay Mines reported in its 1989 annual report royalties that range from 1.5 % to 30% for gold from various gold properties. Brown also sent a copy of an article that appeared in the Dec. 27, 1982, issue of Fortune magazine. This issue carried an article by Walter Guzzardi, Jr. "The Huge Find in Roy Ash's Backyard." The article gives the history of Newmont's leasing in Nevada on property that became the Carlin, Bootstrap and Blue Star Mines. The article states that the initial royalty was 10% that escalated to more than 16%. Another property, the site of Gold Quarry, provides an 18% royalty to the same own¬ers. The article makes interesting reading for those interested in mining history.

Jan 1, 1991

By H. Lyn Bourne

This is the fifth annual tabulation of mineral royalty information. This tabulation, like the previous editions, includes all of the earlier data. There are also 60 new entries. In addition to royalty information, some entries show the cost of purchased reserves. Two articles relative to the evaluation of minerals reserves appeared in December, 1986. R.H. Paschall (In the Aggregate, ME, p 1139) wrote a good article, although it lacked specific royalty data. However, this author takes exception to two ideas in Paschall's column. Paschall contends that the royalty rate does not affect the mineral appraisal. This present author could not disagree more. Paschall also claims the location of an industrial mineral deposit is the only serious or practical caveat in comparing royalties. Comments received here from readers helped make the list of caveats that are cited each year. The readers will decide which factors influence the mineral value for their commodities of interest. Paschall's point about the relationship of the parties who are negotiating a royalty agreement is important and very well taken. The other article, written by William Vernon (Pit and Quarry, December 1986), gives a step-by-step process on how to conduct a mineral appraisal. The article cites three reasons for an appraisal: transfer rights; collateral for a loan; and taxation. A fourth reason is to establish adequate compensation for reserves lost through condemnation. This author has appeared in several court cases where compensation for loss of mineral reserves through condemnation required a mineral appraisal. Royalty rate becomes an important factor in the appraisal process, although the Pit and Quarry article refers to that part of the valuation equation as "profitability." Both articles were well written and are recommended reading for those interested in mineral valuations. The same caveats that have appeared in previous columns relative to factors that influence the value of reserves are restated. The data in the table serve as a general reference and are not intended to present an absolute scale of reserves costs. Several factors influence the value of any mineral commodity. The factors include: • location/transportation - especially significant for most industrial minerals; • market conditions both for the commodity and the company acquiring the right to mine; • quality or grade of the deposit as it reflects the amount of processing/beneficiation necessary to produce the finished product; and • legislative restrictions and conditions for mining a given material at a given site. These and other factors will significantly influence the cost of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity in column 1, and the subsequent columns give: • the location by state, US geographic area, or Canadian province ; • the cost - R for royalty and P for purchased cost; • the year in which the lease or purchase agreement occurred; and • comments or footnotes for more information. The cost column requires more explanation. The units may refer to cubic yards (/cu yd), cubic feet (/cu ft), short tons (/T), or acres (/A). 1 cu yd = 0.76 M2 1cuft = 0.28m3 1 st = 0.9072 t 1 acre - 0.4047 ha or m2

Jan 7, 1987

By F. Schreiter

The Ore Mountains in Germany have a history of more than 850 years of underground mining activity. This has created a situation where thousands of old mine shafts and adits are due for rehabilitation. While no long-term stable rehabilitation was executed in previous centuries, those abandoned mine sites which date back to the uranium mining boom from 1945 to 1962 were rehabilitated immediately after mine closure according to state-of-the art technology. Over the years, however, it has become obvious that most of these sites are not long-term stable and thus it has become necessary to rehabilitate them a second time. Technical University Bergakademie Freiberg is carrying out a research project on the optimization of this process. 70 mine site rehabilitation projects, the technology and the materials used have been assessed. A technical guideline for future rehabilitation projects, based on the outcomes of this assessment, is under development with the goal to make it easier, faster and more economical to select and apply suitable designs and construction materials for dams, plugs and other rehabilitation structures in former uranium mines.

Feb 27, 2013

By E. F. Schnitzer, S. R. Mamoyac, P. J. Wampler

During 1996 and 1997, Oregon experienced flooding on a scale not seen in many years. Some gravel pits located near rivers experienced erosion and, in several cases, breaches between the gravel pit and the river. Initial evaluation of several sites that experienced breaches indicates that impacts to the river system are complex and vary significantly from site to site. The impacts to the adjacent river system may be viewed as both positive and negative. Several floodplain-mining sites in Oregon located in areas of historic river flow have reverted to active riverbed. In many cases, state and federal fisheries biologists and university researchers see the resulting increase in channel complexity and habitat as favorable. The Oregon Department of Geology and Mineral Industries – Mined Land Reclamation Program (DOGAMI-MLR) is performing additional studies of the impacts to the off-channel areas that resulted from the 1996 floods. More data is needed to make sound floodplain decisions regarding mining.

Jan 1, 1999

By Russel Delmar, Rick Everdell, Harry Charalambu, John Tait

Award of the Design/Build Agreement for construction of Ontario Power Generation’s (OPG’s) Niagara Tunnel Project was made after an intensive 8-month international procurement process. The 14.4-m diameter × 10.4-km long rock tunnel will divert 500 m3/s of water from the Niagara River to the Sir Adam Beck hydroelectric generating complex. The procurement process and Design/Build Agreement included features to address the owner’s requirements regarding risk allocation and cost and schedule certainty, while encouraging innovative ideas from the industry, both technically and commercially. The process included an international expression of interest and prequalification, followed by an invitation for design/build proposals to qualified proponents, and comprehensive proposal evaluations and negotiations with several respondent proponents. An honorarium was provided to the unsuccessful participants in the proposal stage. The resultant negotiated Design/Build Agreement includes Owner’s Mandatory Requirements, negotiated contract terms and conditions, performanceincentive bonuses and liquidated damages for schedule and water delivery performance, a multistaged Geotechnical Baseline Report, joint risk management, references to preexisting community impact agreements and measures to reduce impact on tourism. It also addresses regulatory approvals and permits, an owner controlled insurance policy that required reference to the International Tunneling Insurance Group (ITIG) Code of Practice for Risk Management as a condition of coverage, site specific safety, security and environmental plans, formal team building, a dispute review board, and escrow documentation.

Jan 1, 2007

By W. F. Visser

The growing availability of information and data analysis capabilities of recent years provides new opportunities for improving the performance of mining operations. By using real-time measurements and artificial intelligence, it is possible to respond faster to changing conditions, while accurate and timely information permits rapid evaluation of changes and fast business improvement decisions. This article presents a blueprint for alignment of systems, organizational design, and management practices to leverage these developments in performance-driven operations management in mining and mineral processing. The first component of the blueprint is a performance framework with a system of key performance indicators for production control that can be used across organizational levels. This system places improvement at the core of management activities, giving greater importance to improvement skills at lower organizational levels, so companies can leverage available information for improving operational control. Secondly, the blueprint defines an organizational structure that strengthens performance improvement with technological and change management capabilities. Finally, the blueprint proposes alignment of management practices, covering the optimization of short-interval controls, the application of an improvement project portfolio management system that determines the ownership of improvement projects, and the coordination of controls across the organization. This combination of systems, organizational design, and management alignment supports rapid decision-making at the right organizational level. Introduction of the presented blueprint for operations management enables mines to leverage the developments in information and analysis capabilities to improve the performance of operations.

By K. Wangerud, B. S. Caruso

A water balance model with deterministic and stochastic components was developed and used for the Gilt Edge Mine Superfund Site, South Dakota, to evaluate risks of contaminated runoff discharging to surface waters based on assumed water treatment plant (WTP) rates for different remedial alternatives. The objectives of the modeling were to use a stochastic approach for analysis of precipitation based on historic records, and for probabilistic estimation of annual and monthly runoff from primary disturbed/mining activity areas that currently requires, or will need, treatment at the WTP, water storage and changes in a major pit, and risk of contaminated water bypass of the WTP to a downstream drainage. Subareas/source areas generating contaminated runoff requiring treatment were delineated. A simple water balance model was used based on precipitation inputs and evapotranspiration and groundwater losses. Annual and monthly precipitation records for Lead, South Dakota were used to estimate precipitation at the mine site. A lognormal distribution was estimated for monthly precipitation. The stochastic software package/Excel add-in “@Risk” was used to generate random monthly precipitation values using a Monte Carlo method based on the distributions. The average annual and monthly distribution of pan and lake evaporation, and groundwater losses were also estimated for the site. Stochastic outputs from the model for the end of each month and year included contaminated runoff requiring treatment, water storage in mine pits and the risk of WTP bypass given different assumed WTP rates. The probability of the time required to dewater the pits was also modeled.

Jan 1, 2002

By E. F. Schnitzer, P. J. Wampler

During 1996 and 1997, Oregon experienced flooding on a scale not seen in many years. Some gravel pits located near rivers experienced erosion and, in several cases, breaches between the gravel pit and the river. Initial evaluation of several sites that experienced breaches indicates that impacts to the river system are complex and vary significantly from site to site. The impacts to the adjacent river system may be viewed as both positive and negative. Several floodplain-mining sites in Oregon located in areas of historic river flow have reverted to active riverbed. In many cases, state and federal fisheries biologists and university researchers see the resulting increase in channel complexity and habitat as favorable. The Oregon Department of Geology and Mineral Industries – Mined Land Reclamation Program (DOGAMI-MLR) is performing additional studies of the impacts to the off-channel areas that resulted from the 1996 floods. More data is needed to make sound floodplain decisions regarding mining.

Jan 1, 1999

By Brendan Donnelly, Lasitha Piyathilaka, Jung‑Hoon Sul, Sanghyun Jeong, Benjamin Probyn

Premature failure of armoured face conveyor (AFC) chains due to corrosion is a significant proportion of the unplanned downtime experienced on longwall equipment. The AFC chains are constantly in contact with water and wet coal. The premature failure issue of AFC chains has become more prominent since the introduction of longwall top-coal caving with its additional AFC. Reverse osmosis (RO) is a popular water treatment method for reducing salinity and dissolved solids, but its impact on the corrosion of the AFC chains is unclear. This study has been commissioned to investigate the direct effects of RO water on the corrosion of AFC chains. An immersion test was carried out using AFC chain steel submerged in two water samples: untreated dam water and treated water from an RO treatment plant. Elemental analysis was conducted for both water samples, and four corrosion indices were measured for both water samples. The RO water more vigorously dissolves calcium carbonate scales leading to increased corrosion of the AFC chains although the dam water has much higher levels of calcium, chloride, sulphate, sodium, and magnesium. Bicarbonate ions are the main alkaline factor of water that provides the buffering capacity to acids. Decreased alkalinity without balancing other ions in water causes high corrosivity and decreased scaling tendencies.

Oct 16, 2023

By Bengt L. Stillborg

INTRODUCTION This paper summarizes the result of a two and a half year research program. The objective of the research was to develop a fundamental understanding of the Rib-in-Roc method. Through the development of a new model technology, namely three-dimensional physical models which powerfully exploit the results of dimensional analysis Stillborg, Stephansson and Swan (1), it has been possible to establish the contribution to both permanent and immediate stabilization of a large underground opening pre-reinforced by the Rib-in-Roc method. Using the results from these physical models and earlier work by Stillborg and Stephansson (2) and Åkesson (3), a conceptual synthesis is given in this paper so demonstrating the Rib-in-Roc method to be a practical working system of pre-reinforcement. DESCRIPTION OF THE RIB-IN-ROC METHOD To give the reader an idea of how this method of pre-reinforcement is performed, a short description will be given, Figure 1. Before any full-scale excavation takes place an entry is made in the host rock and rib raises are driven around the proposed opening. These raises are made at a spacing that is dependent upon rock quality; an opening in poor rock needs more ribs per length of opening. As the ribs are driven they are used as a site from which very competent rock bolting can be done. As a rib is excavated it is filled with reinforced concrete. Finally after having in this way reinforced the zone around the proposed opening, (a reinforced arch is formed) the displacements are automatically controlled as the opening is being excavated. Using this method openings with a span of 50-60 meters (160-200 ft) and a height of 60-80 meters (200-260 ft) are likely to be realised.

Jan 1, 1979

By D. Brady

The need for onsite gas monitoring during, or following, a major incident at an underground coal mine has long been recognised. Recommendations from inquiries following Queensland mine disasters have included ?qualified persons and equipment for rapid analysis of gas samples be available in times of emergency? and that ?this may be accomplished by either mobile laboratories or laboratories established in each mining locality.? Following the Moura No. 2 disaster, the Queensland Government allocated funds to Simtars for a mobile laboratory to respond should such a disaster occur again in the future. This vehicle was commissioned in 1997 and has been used at many mine sites under a wide range of scenarios. Simtars, armed with over ten years of operational experience with this mobile laboratory, has taken an active role in the design and construction of a modernised replacement unit. With a twenty point tube bundle system and ultrafast gas chromatograph the result is, arguably, the best equipped mobile gas analysis laboratory for mine emergency response in the world. This paper outlines the features of the new laboratory, its capabilities and the philosophy behind the design and inclusions.

Jan 1, 2012

By William H. Langer

The annual consumption of sand and gravel aggregate in 2006 in the Phoenix, AZ metropolitan area was about 76 Mt (84 million st) (USGS, 2009), or about 18 t (20 st) per capita. Quaternary alluvial deposits in the modern stream channel of the Agua Fria River west of Phoenix are mined and processed to provide some of this aggregate to the greater Phoenix area. The Agua Fria drainage basin (Fig. 1) is characterized by rugged mountains with high elevations and steep stream gradients in the north, and by broad alluvial filled basins separated by elongated fault-block mountain ranges in the south. The Agua Fria River, the basin?s main drainage, flows south from Prescott, AZ and west of Phoenix to the Gila River. The Waddel Dam impounds Lake Pleasant and greatly limits the flow of the Agua Fria River south of the lake. The southern portion of the watershed, south of Lake Pleasant, opens out into a broad valley where the river flows through urban and agricultural lands to its confluence with the Gila River, a tributary of the Colorado River.

Jan 2, 2010

By D. Dunbar

Flooding of open pits now receives considerable attention from the mining industry as an option that may minimize environmental impacts, particularly when anoxia in pit lake deep waters can effectively eliminate oxidation of pit-wall sulphides. A state-of-the-art, coupled physical-geochemical pit lake model is used to verify that a cost-effective, environmentally responsible closure strategy for the open pit at the Kori Kollo gold mine, southeast of La Paz, Bolivia is to adopt a controlled, two-stage infilling of the open pit upon cessation of operations. By filling the pit initially with highly saline waters from evaporation/infiltration basins and naturally saline deep groundwater, followed by capping with fresh river water, a very stable and strongly stratified pit lake will be developed. In addition, the stratification will result in the isolation of metal-rich saline bottom waters from surface waters of good quality. Results of this model provide defensible predictions of the physical stability and evolution of water quality in the Kori Kollo pit lake over time. The model results indicate that anoxic conditions will develop below the fresh-saline water boundary within 1 to 2 years, followed by the rapid onset of sulphate reducing conditions in the bottom waters. Hydrogen sulphide produced by sulphate reduction will readily react with dissolved metals to form highly insoluble metal sulphides. The process results in the gradual removal of metals from the water column and the concomitant improvement of water quality over time. A notable benefit of this strategy is that it can be fully integrated with other mine site closure options as well as future environmental management strategies. The proposed plan allows for: 1) safe storage of saline evaporation basin waters; 2) the potential for passive treatment in anoxic bottom waters of ARD seepages from other mine site operations should they arise; and 3) a repository for future reactive wastes that could be effectively isolated in a physically and chemically stable environment.

Jan 1, 2001

By D. L. Murr, J. R. Jensen

Testing was conducted on a Minnesota Iron Ore concentrate with Cook Clay as a binder using compressive sheer mixing to enhance the performance of the agglomeration mechanism. The testing was conducted on a bench scale at the Midland Research Center the summer of 2004. Results of the test program will be presented that shows the impact of compressive sheer mixing had on the strength achieve in a green ball.

Jan 1, 2006

By L. M. Dyer

Various attempts have been made to build leadership and management expertise with little success. There are numerous reasons these attempts have failed. Three reasons, along with suggested solutions, will be explored: 1) lack of ownership of the development process by those affected; 2) lack of congruence of the development process used and the business strategies of the organization; and 3) a comprehensive development process. We will discuss a development model applied inside a smelter and refining complex over one year involving all levels of management. The process was credited with helping to substantially reduce cost and enable breakthroughs in production, quality and safety results.

Jan 1, 2000

By R. K. Sinha, B. S. Choudhary, Desh Deepak, A. K. Mishra, Hemant Agrawal, Shankar Kumar

There are several methods (empirical, statistical, and machine learning tools) to calculate blast-induced ground vibration. Still, due to complications in the blasting procedure, under varying blasting loads and strata conditions, it is not easy to predict and simulate blast vibration precisely. Therefore, a study was conducted to simulate the field blast data in Ansys software using explicit dynamics. For this study, monitoring of ground vibration for 20 single hole blasts was carried out. The density of emulsion explosives was in the range of 0.9 to 1.15 g/cc. In the laboratory, rock properties were determined from the rock sample collected from the mine site before blasting. The in-hole velocity of detonation (VoD) and the density of the emulsion explosive were also determined. These parameters were used for numerical analysis to know the ground vibrations at specified points. The results of ground vibration predicted by the model are validated using field data.

By Malcolm Ross

Asbestos crystallizes within rock formations undergoing intense deformation characterized by folding, faulting, shearing, and dilation. Some of these conditions have prevailed during formation of the taconite iron ore deposits in the eastern Mesabi Iron Range of Minnesota. This range includes the Peter Mitchell Taconite Mine at Babbitt, Minnesota. The mine pit is over 8 miles long, up to 1 mile wide. Fifty three samples were collected from 30 sites within areas of the pit where faulting, shearing and folding occur and where fibrous minerals might occur. Eight samples from seven collecting sites contain significant amounts of ferroactinolite amphibole that is partially to completely altered to fibrous ferroactinolite. Two samples from two other sites contain ferroactinolite degraded to ropy masses of fibers consisting mostly of ferrian sepiolite as defined by X-ray diffraction and TEM and SEM X-ray spectral analysis. Samples from five other sites contain unaltered amphiboles, however some of these samples also contain a very small number of fiber bundles composed of mixtures of grunerite, ferroactinolite, and ferrian sepiolite. It is proposed that the alteration of the amphiboles was caused by reaction with water-rich acidic fluids that moved through the mine faults and shear zones. The fibrous amphiboles and ferrian sepiolite collected at the Peter Mitchell Mine composes a tiny fraction of one percent of the total rock mass of this taconite deposit; an even a smaller amount of these mineral fragments enter the ambient air during mining and milling. These fibrous minerals thus do not present a significant health hazard to the miners nor to those non-occupationally exposed. No asbestos of any type was found in the mine pit. © 2007 Elsevier Inc. All rights reserved. Keywords: Taconite; Asbestos; Amphibole; Reserve mining; Tailings; Mesabi iron range; Mineral fibers

Jan 1, 2007

By J. Drew

Oregon Resources Corporation (ORC), an industrial minerals mining company, is currently engaged in the development of a new process design that will allow the unique paleo-beach placer deposits of southwestern Oregon to be mined efficiently and economically, creating an additional domestic source for chromite, garnet, and zircon. Engineering design has been guided by the variable geology and mineralogy of the paleo-beach placer deposits as well as the need for a dry tailing scheme that resolves a lack of water resources at the placer locations and at the same time eliminates the need for slurry settling ponds, typical of paleo-beach placer operations in North America. Metallurgical study of the placer material was grouped into four distinct samples based on marine terrace deposition, geological facies, and mineralogy. Because the metallurgical samples represented the extremes likely to be encountered in all future Oregon paleo-beach placer ores, the process design is highly dynamic and will successfully adjust to meet the production needs. Water availability at the mining area is seasonal and will not support a typical placer operation?s water requirement needs for heavy mineral concentration. For this reason, ORC has developed a plan to construct the ore processing facilities near Coos Bay, where a municipal source of water is available. Raw ore will be transported from the mining sites approximately twenty miles one way to the processing facility with return loads hauling tailings back to the active pit. The need to haul dry tailings, return dry material to the pit for reclamation, and limit the amount of water being purchased from the municipality has driven the design of a unique water reclamation system. BACKGROUND Location and Access Economic concentrations of ?black sand? or heavy mineral (minerals with specific gravity greater than 2.85) have been recognized and studied in marine placers from Coos Bay to the mouth of the Rogue River, a distance of approximately 75 miles along the southern Oregon coast (Hornor, 1918; Griggs, 1945)(Figure 1). ORC will begin mining existing reserves approximately 20 miles south of Coos Bay in a region known locally as Seven Devils. Ore will be trucked north to the processing site near Coos Bay via use of existing county and state roads, including U.S. 101. The available facilities at the processing site include highway, rail, municipal water and electricity, natural gas, and a deep water port. At the time of this writing, the rail line had been abandoned, but was being pursued by the International Port of Coos Bay. It is anticipated that this will be serviceable at some time in the future. History The southern Oregon marine placers have garnered the interests of miners since 1852, when present day beaches were exploited for gold. The beach deposits were small and irregular in nature and were easily washed away by the major storms the coast endures during the winter months (Hornor, 1918). [ ] In the 1920?s, deposits at the beach were followed upstream to their paleo-beach terrace origins (Pardee, 1934). These terrace placers were mined, but with little success, as the cost of mining and processing was greater than at the present day beach deposits. The greatest effort to understand and delineate the paleo-beach terrace placers came during World War II. As the need for a domestic source of steel hardening chromite was evident, the heavy mineral bearing placers of southwestern Oregon provided just that. The U.S. Geological Survey, under guidance from the Oregon Department of Geology and Mineral Industries, began exploration drilling of the paleo-beach terraces in 1940 (Griggs, 1945). This work was part of the investigation of strategic mineral deposits and would ultimately supply much needed chromite for the war efforts. The first mining efforts began in 1943 by the Humphreys Gold Corporation and the Krome Corporation (Griggs, 1945). Black sand

Jan 1, 2009

By R. Heersink, C. H. Wells

Innovations in communications and real-time information systems are providing industry opportunities to improve profitability. Real-time operating data is collected from equipment across a site or even several sites into a central server for secure PC and PDA-based Internet access. This paper includes discussion of how operating staff can use wireless devices to see equipment and processing data from anywhere throughout the mines and concentrators, and how management can view results from multiple mines, all in real time. Additional opportunities enabled through the remote access by equipment vendors or mining consultants is also presented, as well as an overview of typical benefits and current installations.

Jan 1, 2002

By Thomas Kuhn, Carsten Ruehlemann, Christina Heller, Anna Wegorzewski

The commercial extraction of metals from manganese nodules on an industrial scale requires more than 50% of the investment necessary to realize manganese nodule mining. This is mainly due to the fact that a completely new metallurgical processing scheme for the extraction of both base metals (Ni, Cu, Co) and high-tech metals (Mo, Li, Ga) has to be developed and upgraded to industrial scale. There are a number of conventional processing technologies that combine hydro- and pyro-metallurgical approaches such as the INCO and CUPRION processes which have been developed in the 1970s and 1980s. Today, new approaches based on selective leaching with chelating agents and bioleaching try to minimize energy consumption and waste production. All of these extraction methods require knowledge how the metals are structurally bound in the manganese oxides. In this contribution we will review the current knowledge about the mineralogy of iron and manganese minerals in the different marine oxide deposits, present our results, and discuss the possible consequences for metal extraction.

Sep 1, 2014