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By M. Fan, H. E. Wyslouzil, J. Kohmeunch

Eriez HydroFloat(TM) separators and Canadian Process Technologies (CPT) flotation columns have been developed to overcome the limitations of traditional flotation cells in recovering coarse and fine particles, respectively. The flotation column can effectively separate 30-5 µm phosphate. Several industrial-scale HydroFloat separators have been installed in phosphate and potash beneficiation plants. Industrial-scale ultra-coarse (+850 µm) phosphate separation results suggest that a more-than 40% BonePhosphate- of-Lime (BPL) recovery increase and a 37% collector consumption reduction can be achieved. The paper describes the applications of Eriez HydroFloat separators to coarse particle separation and the CPT flotation column to fine/ultrafine particle flotation.

Jan 1, 2009

By J. Olaf Sund

"The New Brunswick gypsum and an-hydrite deposits make up part of the Windsor group in the Upper Mississippian. The present deposits were formed by surface hydration of the underlying anhydrite beds. The sub-hydrate, hydrate, and di-hydrate stages of gypsum are formed from the anhydrite by this hydration. The anhydrite was precipitated from sea water in embayments that were separated from the sea by a reef or bay-mouth bar. The anhydrite is the original form of the calcium sulphate precipitate.One gypsum deposit near Plaster Rock in northern New Brunswick was precipitated from sea water directly as gypsum, which is its present form."

Jan 1, 1960

By A. Oja, M. Lahtinen, P. Salonen, B. Saxen

Most of the secondary and low grade zinc raw materials cannot be treated successfully by either conventional roasting - leaching - electrowinning (RLE) process or even by atmospheric direct leaching process. The problems arising especially from high impurity content of these raw materials can be effectively solved by implementation of the solvent extraction process. The utilization of solvent extraction process has been demonstrated by Outotec with raw materials like Waelz oxide, crude zinc oxide and zinc containing concentrator tailings. Based on batch and continuous test work it has been shown that SHG quality zinc can be produced even from the lowest grade raw materials. Impurity control in the solvent extraction process has been examined. The solvent extraction process is the key feature of the whole zinc plant for such raw materials. However, design of the entire zinc process including neutralization and bleed treatment is important for optimization of investment and operation costs of the plant. Very careful evaluation of the zinc process with modern simulation tools is essential. The optimized Outotec zinc process ensures a sustainable and profitable process containing minimal effluent and requiring little residue treatment.

Jan 1, 2014

By K. Cybulski

Coal dust explosions still remain the main hazard in the coal mining sector, notwithstanding their relatively wide recognition compared to other hazards and the development of effective methods of prevention. Coal dust explosions are still the cause of numerous catastrophes, often leading to fatalities. Fortunately, they rarely occur, and it is for this reason that their hazardous impact is often underestimated. This problem in Poland is being exclusively solved by the Central Mining Institute, Experimental Mine Barbara. Here, basic research on the phenomenon of coal dust explosions and prevention methods is carried out, as well as investigations into the causes and circumstances of past accidents. After 15 years of no coal dust explosion accidents in Poland (1987?2002), a few coal dust explosions have recently occurred, with tragic consequences. These events have taken place not only in hard coal mines, where the presence of dangerous coal dust is the result of common production cycle, and safety measures against coal dust explosions are subject to specific regulations, but also in coal-fired power plants. This is of special concern because prior to 1987, such accidents had been been reported only for coal mines and not for coal-fired power plants. In recent years, two dust explosions occurred in Polish power facilities: the Dolna Odra and Turow power plants. In both cases, coal dust explosions occurred in the fuel supply system, but biomass dust was also involved. The explosions caused significant damage to the systems and buildings. This paper gives description and schematics of the regions of catastrophic coal dust explosions that have occurred in recent years in Poland, as well as the results of post-accident investigations, presenting the coal dust explosion hazard at the accident scene The results specify in detail the state of safety measures against coal dust explosions in light of the relevant regulations in force, including amount of deposited coal dust, content of incombustible matter in coal dust, free moisture content in coal dust, state of coal dust explosion safety zones, and state of explosion barriers. The conclusions from the site inspection and post-accident investigations presented enable us to determine locations of explosion initiation, probable ignition sources, range of explosion flames, and explosion barrier performance. A complete elimination of coal dust explosion hazard at the site of dust deposition is practically impossible to achieve. Similarly, a total elimination of ignition source, which may be related to the occurrence of other natural hazards, equipment malfunction or human errors, is impossible. The examples of tragic events that took place in Polish coal mines and coal-fired power plants highlight shortcomings and mistakes made in terms of assessment and prevention measures taken against the coal dust explosion hazard.

Aug 1, 2013

By John Eggert, Paul Benford

"Since 1982, Placer Dome Inc. -Dome Mine has steadily increased mill throughput. Tonnage has increased from a nominal design capacity of 3000 short tons per day, attained in 1985, to 4130 stpd by the end of 1992. Many minor and major circuit adjustments were tried to maximize tonnage.Having utilized most conventional means of increasing tonnage, further increases required a newer approach. This paper discusses the Dome experience in the development and implementation of an expert system.The Comdale/C system was chosen for a controlled trial. The criteria for acceptance were: increased tonnage had to be sufficient to pay for the system; the increase had to be visibly sustainable and the mill operators had to be willing to accept the system.The criteria for purchase were met during the trial and the system was purchased. The system continues to perform well. The tonnage throughput increase has been sustained while operator acceptance remains high.IntroductionPlacer Dome Inc. -Dome Mine is Canada's oldest operating gold mine. The mine was among the first established in the Porcupine camp in what is now Timmins, Ontario. The City of Timmins is located approximately 500 miles or 800 kilometres north of Toronto. Figure 1 shows a map of the province of Ontario and the mine location.In 1912, milling began at a rate of 350 short tons per day. With two minor exceptions, milling has been continuous since this time. The first of these shut downs was in 1918 during the first world war. The war created labour shortages which forced the mine to stop production for more than a year. The second was in 1930 when fire destroyed the mill."

Jan 1, 1994

By Thomas G. Madgwick

Introduction Development of oil and gas is still centred in the Province of Alberta, much as it was when C. C. Ross read a paper on this subject three years ago at the Annual General Meeting in Montreal; but so far as gas is concerned, its early production in Saskatchewan seems now assured. The three years that have elapsed since Mr. Ross' paper have witnessed a growth in the world's production of oil that has created a potential supply out of all proportion to the demand for petroleum products, and one that has resisted the most energetic efforts of the industry entirely to control. The natural result has been very much to retard the active prospecting of new structures in the Prairie Provinces with any immediate view to oil production, although the same factor has not hindered the search for gas to the same extent. One consequence has been to divert the attention of organized oil operators from wildcat drilling to more detailed geological investigation than had hitherto been customary, sometimes accompanied by test drilling with a view to the elucidation of geological structure rather than to the immediate development of production which at the present is not needed. Nevertheless, in spite of the growth of this phase of oil prospecting - which the writer would be the last not to welcome as a very real blessing and of far greater value than indiscriminate wildcat drilling in either the complex structures of the foothills or the simpler but largely concealed formations of the plains- it is most satisfactory to have to record that in these three years the growth of production both of naphtha and the heavier crude-oil has kept pace with the by no means inconsiderable growth in the production and utilization of natural gas.

Jan 1, 1929

Waste rock extracted from a mine is typically stored nearby on the surface. Such waste rock piles must be designed to ensure their geotechnical and geochemical stability during the mine operation and after closure. The optimal construction of a pile requires detailed planning. Deposition should involve benches of limited height to control the global slope angle, based on the long term factor of safety. It can also be advantageous to compact the top of each bench and to give the surface an outward inclination to control water flow by limiting infiltration and favoring lateral diversion. When part of the waste rock contains reactive minerals, it is also deemed necessary to use selective placement with the non-reactive portion to prevent direct exposure to natural conditions. The construction must be well documented, and include data from the monitoring program. These and related aspects are presented and discussed in the paper.

Aug 1, 2013

By A. Ducastel, S. Connemann, A. Stark, F. Bouillot, C. Fricke-Begemann, LSA, H. Knapp, L. Horckmans

"Refractory materials are essential for all high-temperature applications in industry. Depending on the position in the furnace and specific process requirements, refractories are produced from several raw materials, such as dolomite, magnesite, bauxite, graphite or chromite. Most of these raw materials are not rare but strict quality requirements limit the producers of refractories to only a few deposits in the world. Thus, raw material supply is a critical factor for the production of refractories and accounts for 40-50 % of the total costs of refractories.A possible way to lower dependency on raw material supply is recycling of spent refractories. Main challenge in recycling is the separation of different brick types from each other and the removal of impurities, such as steel or slag. The European FP7 project REFRASORT aims to apply sensor-based sorting for separation of spent refractories. Sensor-based sorting is known from food industry, recycling and mineral processing and has proven its reliability. Nevertheless, some adjustments are necessary compared to applications in mineral processing because of other sensor-types and a higher number of products in one sorting step. This paper presents the results of feasibility tests for sensor-based sorting of refractories with near infrared spectroscopy and laser-induced breakdown spectroscopy (LIBS). Both sensors showed the potential to identify different brick types but the most promising results were obtained using LIBS technology. INTRODUCTIONRefractories are solid, ceramic products, which can sustain temperatures of more than 1500°C, without losing their stability or shape. Bricks of refractories have to withstand corrosion in contact with liquid steel or slag. Various high temperature applications, such as the production of glass, steel, copper or cement, require high quality refractories. The quality requirements of refractory bricks are strict, because small impurities can lower the thermal strength significantly."

Jan 1, 2016

By Andrea Lisjak

The mechanical behaviour of Opalinus Clay, an indurated over-consolidated argillaceous rock, is heavily influenced by the presence of preferably oriented bedding planes. The objective of this study is to illustrate a new modeling approach aimed at capturing the bedding-induced anisotropy of Opalinus Clay as observed in the laboratory and in situ. The combined finite-discrete element method (FEM/DEM) is employed as the main simulation tool. FEM/DEM is a numerical method that models material damage processes by explicitly considering fracture nucleation and propagation. A transversely isotropic elastic constitutive law is used to account for different elastic property values in the direction parallel and perpendicular to the layering, while strength anisotropy is captured using a directional cohesive fracture model. Quantitative calibration and validation of the model is based on laboratory results of indirect tensile tests and uniaxial compression tests. Emergent strength and deformation properties, together with the simulated damage mechanisms, are shown to be in good agreement with experimental observations. Preliminary results relative to the analysis of a circular tunnel show that the approach is able to reproduce the main Excavation Damaged Zone (EDZ) formation mechanisms as observed in the field.

Jun 1, 2012

By Glen Robertson, Jeff McLaughlin

"The Clarabelle Mill rock tailings have the potential to generate sulphuric acid through chemical and biological oxidation of sulphide minerals. Current rock tailings assay between 0.80 -1.40 %S, with sulphur occurring principally as coarse pyrrhotite. Acid generation within the tailings area can be substantially reduced by segregating pyrrhotite rich tailings in a submerged storage area and by depositing only low sulphur rock tailings in exposed areas. Laboratory tests confirmed that low sulphur tailings could be produced by flotation at reduced pH with a small xanthate addition. A plant test was conducted to evaluate the production of low sulphur tailings in conjunction with INCO's continuing commitment to environmental protection and progressive decommissioning of the metallurgical site.During the plant evaluation, approximately 5% of the mill rock tailings were reprocessed in a line of 100 tt3 Denver flotation cells. Tailing grades below 0.40% S were easily achieved through operation at pH 6 -7, with xanthate addition (dosages up to 0.02 lb/ton) and 10 -15 minutes of nominal retention time. Froth depths between 1 -3 inches combined with relatively liberal amounts of frother were required to pull the lightly mineralized froth into the concentrate which averaged 11% sulphur and less than 5% mass recovery. In addition, three field lysimeters were each filled with two hundred.ton bulk samples of low sulphur tails (0.35% S), standard rock tailings (0.98% S), and mill total tailings (2.30% S) for long term monitoring. The implications for full scale plant design, tailings area decommissioning, the possibility of increased nickel recovery and preliminary field lysimeter data are discussed."

Jan 1, 1994

By D. R. Schmitt, N. Ong, R. S. Kofman

Shales and mudstones comprise about 75% of all the sedimentary rocks. In, particular, organic rich shales are considered as a petroleum source rock and more recently with the advent of hydraulic fracturing technology to be a reservoir in their own right. In this sense, the aforesaid motivates our work with laboratory measurements of elastic properties of these geologic materials, which are known to be anisotropic. As such, assuming Vertical Transverse Isotropy (VTI) symmetry, the dynamic and static moduli of a series of cores from various geological formations in Alberta, Canada are simultaneously investigated as a function of confining pressure using the ultrasonic pulse transmission method and strain gages. Dynamic moduli were obtained from ultrasonic P- and S-wave velocities measured on a prism cut with faces perpendicular, parallel and oblique to the assumed vertical axis of symmetry. Static moduli were calculated from strain-stress curves obtained along the directions perpendicular and parallel to the assumed axis of symmetry as well. Velocity measurements show that samples are highly anisotropic, but that the pressure-dependent behaviour of the wave speeds differs. VP(90°) and VSH(90°) both with layer parallel propagation and polarizations change little with pressure while VP(0°) and VS(0°) (both with layer perpendicular propagation) display significant nonlinear responses particularly at pressures < 25 MPa. These characters transfer to the derived full set of elastic constants. In order to effect a proper comparison of the dynamic and static moduli, we convert the dynamic elastic constanst to linear compressibilities pependicular (Kdyn1) and parallel (Kdyn3) which are directly comparable to the static tangent compressibiities obtained by differentiation of the observed strains. Both sets highlight the anisotorpic nature of the material but most interestingly Kdyn1 _ Ksta1 but Kdyn3 > Ksta3 by nearly 40% for one of the samples. The other samples measured respond similarly suggesting that conceptually the structure of such materials could be considered to be constructed of alternating stiff or compliant layers. This finding has implications in the response of the formation to stress particularly during hydraulic fracturing and the interpreation of acoustic logs in providing appropriate measures of elastic properties for engineering purposes.

Jan 1, 2015

By M. Marchese

It is no secret that scarcity of fresh water is an issue that at a global level in the years to come will have a major impact on the business landscape. A number of projects, beyond the mining sector, could remain on paper only due to this. At the same time, this situation is seeing the rise of new business opportunities, such as development of technologies for more efficient usage of water, water recycling, and desalinization of sea water. Despite that most of Chilean mining facilities are located in the driest area of the world, business has developed strongly and actively for more than a century. However, the negative effect on the water reservoirs and the environment is, lately, resulting in the reduction of the authorized water rights. Holding Water Rights for any given volume does not guarantee that the resource will be available when needed. A recent report from the United Nations on global climate change indicates that global warming can be directly related to changes in the natural and human environment. Chile would not be an exception. The reduction in snow levels in the high Andes and reduced rainfall during the so called "Bolivian winter", have directly affected the replenishing of the underground water reservoirs in the lower parts of the valleys, where most of the extraction of the resource takes place. Mining facilities shall be designed to reduce potential environmental effects, using proven technologies, and considering the best practices available. These measures shall constitute a complete structural framework for the environmental impact assessment (EIA) of the Project. The measures to prevent and mitigate the impacts on the water resources shall be considered during the design stage of a mining project. Current and future mining projects in Chile are conscious that the increasing pressure on the limited water resources is becoming unsustainable, and are already facing the water scarcity and social pressure by implementing sea water desalination plants, including long pressurized pipelines to the mine sites (e.g. Escondida, Candelaria, El Morro, Regalito). This paper presents, in summary, an analysis of the present and potential future scenarios.

Jan 1, 2007

By D. Jean Hutchinson, Mark Diederichs

"Cable bolts are an important support component in modern underground mines. If an optimized cable bolt system is to be achieved, it is insufficient to focus on cable bolt layout design or on cable bolt installation in isolation. Cable bolt support, like all engineered systems, requires a holistic approach, encompassing integrated elements of design, implementation and verification. The “Cable bolting Cycle” described in this paper incorporates these components along with related tools and procedures which should be used together to ensure effective and efficient cable bolt support.Design involves the consideration of demand, capacity and constraints as outlined in this paper. The demands imposed on the sup-port system by the rock mass response to excavation under the combined action of stress and gravity must be matched to the capacity of the cable bolt array. The cable bolt system capacity is a function of the component strengths of the steel strand and the bond (load transfer) and by the deformation response and retention characteristics of the system. The design is bounded by operational and economic constraints.Implementation of the cable bolt array can then proceed and must include appropriate protocols of communication, training and quality control, in addition to both general and site specific installation procedures. Implementation will be discussed as the sum of these components.Implementation of the cable bolt array can then proceed and must include appropriate protocols of communication, training and quality control, in addition to both general and site specific installation procedures. Implementation will be discussed as the sum of these components.The information presented in this paper represents a very abbreviated version of much broader concepts, procedures and design charts, presented in a practical cable bolting handbook by Hutchinson and Diederichs (1996)."

Jan 1, 1996

By R. W. Bruce, K. W. Downes

"IntroductionSULPHUR production in Canada from all sources for the year 1953 amounted to about 375,000 tons. Except for 16,000 tons of elemental sulphur derived from natural gas, this production was in the form of by-product pyrites, liquid sulphur dioxide, and sulphuric acid. In the same year, Canadian industry imported 359,000 tons of elemental sulphur from the United States. The cost, including transportation charges, to Canadian consuming plants ranged from $35.00 to $45.00 per long ton, depending upon location.Although most of the sulphur consumed is used in the oxidized form it is often most convenient to buy sulphur in the elemental form, and convert it to sulphur dioxide or sulphuric acid in situ as required. This is because elemental sulphur is easily shipped and stored, weighs only half as much as an equivalent quantity of sulphur dioxide and one-third as much as the corresponding quantity of sulphuric acid, and is readily converted to these forms in a sulphur burner. A process, therefore, which could economically recover elemental sulphur from sulphide ores would be most attractive.Since the turn of the century, notable improvements have been made in extractive metallurgy, but until recently only limited attention has been paid to the possibilities of elemental sulphur recovery. This has been due to the plentiful supplies of cheaply mined Frasch sulphur which have been available on the world markets."

Jan 1, 1955

By F. H. Edmunds

Introduction This paper, it is hoped, will serve as an introduction to further work upon the origin of the soils and to a more complete interpretation of the geology of Saskatchewan from a study of the soils of the Province. The great difficulty that is encountered in mapping the structure of the prairie regions of the west must be evident to all who have made the attempt. The rarity of good exposures, due to the extensive coverings of glacial drift, is the greatest obstacle, making it difficult to determine the exact stratigraphical position of such exposures as may be found. In many cases palæontological evidence is lacking, or, if available, our present knowledge of the stratigraphy is insufficient to justify division of the formations into horizons; and until many of these formations have been subjected to petrographic investigation, little can be done in using lithological differences as an aid to the correlation of the usually sparse outcrops met with in the Province. Topography may be of the utmost value as an indication of geological structure when considered in conjunction with other evidence. It does not necessarily follow that, because an area in Saskatchewan has resemblances in surface configuration to an area of oil-producing land in Texas, there is sufficient justification for sinking money in wells without further investigation. Such - investigation should include the study of available soil maps.

Jan 1, 1929

By H. Hejny

Economy needs mineral raw materials in almost each sector of modern life. They can only be provided by mining activities. An increasing share of the total mining production will be by underground mining. The mineral deposits will be found at gradually greater depths, including all problems associated with them. It involves an increase in overburden pressure with subsequent rock stability problems and risks of structural collapse. There is a need for new and safe technologies for almost all parts of a modern mine. The mining industry faces a number of challenges which require technical solutions that encompass the entire network and include the economic, social and environmental issues. The industry needs a new image based on pioneering solutions and a modern structure that can exploit minerals at greater depths and promote both high productivity and safe working conditions. Funding has been secured from the European Commission for the I²Mine project. Work started in November, 2011. This initiative is designed to focus on the technological challenges that the mining industry is currently facing including the exploitation of ever deeper deposits and the aspiration for an invisible, safe, zero impact mine. The project comprises a consortium of 27 organisations from 10 European countries. I²Mine marks the start of a series of development activities aimed at realising the concept of an invisible, zero impact, deep mine. The extractive sector, still seen as being old fashioned and environmentally unfriendly, will show that mineral extraction and processing can be done in a highly innovative and sustainable manner with low impact underground and zero impact above ground. The concept of I²Mine is to develop innovative methods, technologies, machines and equipment necessary for the efficient exploitation of minerals and disposal of waste, all of which will be carried out underground. This will dramatically reduce the volume of surface transportation of both minerals and waste, minimising above ground installations and reducing the environmental impact. New eco-efficient technologies will be applied in order to make the entire mining process more efficient and environmentally sound. The concept is for an integrated mine, with the majority of the installations underground, and only the final product will be transported above ground to be shipped to the customer. Production waste will be treated and stored underground and gaseous emissions will be managed underground as far as practical. I²Mine will also focus on ideas and concepts that increase energy efficiency and decrease waste. The core of the project will be to develop breakthrough technologies for autonomous, highly selective, continuous mineral extraction processes and machinery based on new sensor technologies, face front separation as well as innovative concepts for mass flow management and transportation integrating state of the art technologies. The concept of an invisible, zero impact mine requires a refined process underground that selectively extracts the mineral thereby reducing waste. For this reason, improved extraction machines and near to face processing methods, including backfill procedures, need to be developed. These developments include rock mechanics and ground control solutions, incorporating health, safety and environmental issues.

Aug 1, 2013

By A. O. Dufresne

Introductory At the Annual Meeting of the Institute, held two years ago, I had the privilege of presenting a paper on Recent Mineral Discoveries in Western Quebec. In it were pointed out the areas favourable for prospecting in that section of Quebec adjoining the mining camps of northern Ontario; the discoveries that ?had been made were recorded; and some of the developments up to that date were reviewed. Since then, two full years have elapsed, during which a considerable amount of serious work has been performed with such results that western Quebec has today six properties about ready to mine commercial ores of gold, copper, and zinc. These results have been brought about after large sums of money had been invested to bring the district to a producing stage. A smelter has been built, and is already producing copper; two railways have extended their lines into Rouyn; and the Provincial Government has shown faith in the future of the district and has spent large sums of money in the building of highways and for other public works. The purpose of the present paper is to review the developments of the last two years, and the work that has been performed in various spheres of activity in that section on western Quebec covering the county of Abitibi and the northern part of the county of Temiscamingue.

Jan 1, 1928

By R. K. Collings

Mineral wastes from the mining, metallurgical and chemical processing industries in Canada amount to about 800 million tonnes annually. Such wastes often are largely non-metallic in composition and are of interest for traditional non-metallic mineral uses and applications. Mineral waste disposal and maintenance are costly; furthermore, these wastes may pollute groundwater, rivers and lakes. These factors and an increased appreciation of the potential utility of some mineral wastes have stimulated research in this area.

Jan 1, 1984

By R. S. Fitzpatrick, P. Hegarty

"Gravity separation is a key technology in the recovery of a range of mineral ores including coal, tin, tungsten and tantalum. One of the problems associated with gravity concentration is that recovery is traditionally lower than for other separation techniques such as the flotation of base metals. Any improvements in recovery will, therefore, have a significant effect on the economics of operations of this type. More accurate, robust modelling of gravity separators is one means of achieving greater recoveries. Furthermore, better modelling can lead to more informed equipment selection and process design for potential economic deposits.Previous models for gravity separation equipment have typically relied on simple metal mass balances from samples of the separated products. However, with advances in technology there is a ready availability of analytical instruments for the automated quantitative determination of mineralogy. Instruments such as the Mineral Liberation Analyser and QEMSCAN make it possible to estimate particle size and density (related to mineral liberation and association) which are the primary factors in gravity separation. Models produced using quantitative mineralogy of feed streams will be potentially superior to those produced historically.This paper describes test work undertaken on a wet shaking table using a synthetic ore. The objective of this test work was to develop a model to predict the effect of changes in feed ore characteristics on shaking table performance by measuring quantitatively the mineralogy of the feed material. Particles were divided into size/density classes based on the results of QEMSCAN analyses.It was found that it was possible to use data from QEMSCAN to predict the recovery of size/density classes and to predict the effect of changes in the relative abundances of these classes on the separation. This model can potentially be used to adjust operating variables to maximise grade and recovery by monitoring the input feed. Care was needed when utilising QEMSCAN data to ensure representivity."

Jan 1, 2016

By Robert B. Parsons

"Canada&apos;s mining industry has reason to celebrate the federal government&apos;s budget which was tabled on February 26, 1986. The budget contains an important proposal to improve the flowthrough share rules by effectively eliminating the investor&apos;s liability to third parties. This proposed rule change and other important budget proposals are the subject of this month&apos;s edition of Tax Notes. IntroductionWhile Finance Minister Michael Wilson&apos;s February 26, 1986 budget received a mixed reaction from business and labour leaders, the budget was mainly ""good news"" for the mining industry. A long-standing bugaboo in the flow-through share rules will be cleared up, a permanent set of rules will be installed for the tax treatment of Northern allowances, and limited partnerships will apparently be able to continue to serve a useful role in financing exploration programs. Flow-Through SharesThe present rules which apply to an investment in flow-through shares are structured in such a way that the relevant Canadian exploration expense (""CEE"") must be incurred by the investor, and not by the issuing corporation. Obviously, in the case of most flow-through share issues, this requirement that the investor incur the CEE poses a practical problem-the investor typically does not have the expertise or organization to incur the CEE. As a result, an integral part of most flowthrough arrangements is an agreement whereby the investor appoints another party (usually the issuing corporation) as his agent to spend the flow-through funds on CEE on his behalf. Although the issuing corporation might consequently be the party which actually spends the flow-through share funds on CEE, nevertheless the legal structure is such that the investor is the ""principal"" who is incurring the CEE. As such, the investor is legally responsible for any third-party claims with respect to the exploration program. Third-party liability might arise, for example, in the case of property damage, personal injury, environmental infractions, and so on."

Jan 1, 1986