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By David W. Wisecarver

The U.S. Bureau of Mines, in cooperation with U.S. Borax and Chemical Corporation and the Kennecott Copper Corporation, has investigated the use of the microseismic method to evaluate the stability of large, open-pit slope walls. The method is based on the phenomenon that stressed rock normally emits subaudible rock noises, and the number of rock noises per unit time (noise rate) and the magnitude of the rock noises (amplitude) increase as the stresses in the rock approach the failure stress of the rock. Therefore, the detection and recording of those rock noises serve as a semiquantitative method of predicting the incipient failure of rock. This report briefly describes the three different types of microseismic apparatus, the procedures, and the results of microseismic investigations in the slope walls of the Boron Mine near Boron, California, and the Rimbley, Liberty, and Tripp-Veteran open-pit mines near Ely, Nevada. Microsesimic noise rates in stable inactive mining areas are between 0 and 10 noises/ hour; the rates in stable active mining areas are between 10 and 50 noises/hour; and the rate in unstable areas is as high as 2500 noises/ hour. High microseismic noise rates in the Liberty Pit correlate with the time of nearby earthquakes, indicating that the earthquakes affected the slope wall. The results provide evidence that the microseismic tech¬nique is applicable to large pit walls, and that the wide band, wide range microseismic equipment appears to be suitable for open-pit investigations.

Jan 1, 1969

By D. Panias

Alumina hydroxides such as gibbsite (Al(OH)3) and boehmite (AlOOH) are precursors of many types of alumina that find important industrial applications. The thermal decomposition of AlOOH, which is a more energy saving precursor compared to gibbsite, gives rise to the formation of ?-, d-, ?- and a-aluminas that are used for the production of catalysts. The applications of the aluminas are governed by their properties that are a function of the precursor material and its microstructure. The microstructure in turn is a factor of the method and conditions applied, as well as, in the case of soft chemical processes, on the anions present. Towards these ends, this study was focused on the effect of different anions on the physicochemical characteristics of the alumina hydroxides precipitated in the first 5 minutes after the perturbation of the stability of a supersaturated sodium aluminate solution (Bayer liquor).

Jan 1, 2006

By R. Stanevich

Studies by the National Institute for Occupational Safety and Health (NIOSH) and the Bureau of Mines (BOM) have demonstrated that: (1) 90% of diesel particulate is less than one (1) micrometer in aerodynamic diameter; (2) more than 90% of the respirable mass in electric coal mines was greater than one (1) micrometer in aerodynamic diameter; and (3) in coal mines using diesel equipment, average diesel concentrations can represent up to 53% of the MRE respirable coal dust standard. For mines approaching the 2 mg/m3 standard, compliance may be easier to attain by controls directed at diesel exhaust particulate as opposed to coal dust control. First, however, a Simple instrument is needed to measure diesel exhaust particulate concentrations. This paper describes such a sampler, its construction, and use. While results from this sampler are primarily utilized to identify control areas, NIOSH is also using the sampler for estimating worker exposures in epidemiologic studies.

Jan 1, 1988

By Daniel C. McLean

Many of the major copper ore bodies throughout the world contain chalcocite (79.9% Cu) as the principal copper mineral, yet the grades of copper concentrates produced from these ores rarely exceeds 25 to 28% Cu and in one known instance went as low as 13%. The low grade has traditionally been attributed to the presence of "activated pyrite" and/or chalcopyrite, and the universal approach has been excessive regrinding with all of its inherent effects-high capital, energy and maintenance costs, excessive sliming, and concentrate filtration difficulties (high moisture content). E. P. Cadwell, former Chief Metallurgist for American Cyanamid Company, did extensive microscopical studies on several of these types of concentrates from South American operations during the 1950's and discovered they all had one common feature--the pyrite particles in the concentrate were all rimmed with thin films of secondary chalcocite or covellite. As far as a flotation bubble or reagent is concerned, a rim of chalcocite is the same as a solid particle of chalcocite, and as long as a rim is present, the particle is going to float. Upon examination of these rimmed particles under the microscope, it becomes quite obvious why regrinding will never solve the problem and why maximum increases in grade by this technique rarely give improvements in grade of greater than 3 to 5% Cu.

Jan 1, 1983

By John H. Canterford

The adsorption of uranium onto Wyoming bentonite was measured in carbonate media over the range pH 8-11. Uranium was removed from solution onto the solids by a rapid reaction, proposed to be adsorption of the anionic uranyl tricarbonato complex onto edges of the clay platelets, and a slow reaction which may be precipitation of a hydroxide. The changes in uranium content of the aqueous and solid phases of a uranium ore carbonate leach slurry were also measured as the slurry was progressively diluted. There was an increase in the uranium content of the solids as the pH of the suspension was lowered, as was observed with the Wyoming bentonite. The results indicate the conditions that should be met with respect to pH control in order to prevent the problem of excessive uranium adsorption in the counter-current decantation washing circuit of a conventional leaching process, as well as in the leaching and restoration phases of carbonate solution mining.

Jan 1, 1983

By M. K. Larson, J. K. Whyatt

Proper employment of numerical stress analysis design tools is based on the demonstrated ability of a model to capture key elements of the geologic site model and accurately simulate how these elements interact with a mine design. While these tools have progressed markedly, they are, at heart, a gross simplification of the abundant complexity of a natural setting and its response to mining. A generic deep longwall site model was developed that includes aspects of the geology of deep coal mines in the Wasatch Plateau and Book Cliffs coal fields of Utah. The site model contains a set of common features and observations of how these features typically respond to mining. This site model was the basis for evaluating use of empirical, boundary element and volume element stress analysis tools to analyze the distribution of stress around a deep longwall panel. More specifically, this evaluation examined shifting of stress to panel abutments and gob, distribution of stress in the abutment and deformation and failure of bridging strata. Measurements of abutment stress changes at two sites in the Wasatch Plateau region were used to illustrate model calibration. Overall, these comparisons highlight the considerable differences between methods. Volume element tools can incorporate considerable detail and have fewer underlying assumptions, but this detail carries a considerable computational cost. Boundary element tools are much more efficient. However, this efficiency comes at the cost of added assumptions. These assumptions were challenged by the presence of a strong sandstone unit in the overburden, leading to boundary element results that depart significantly from volume element results. Empirical rules are the simplest, but are even more burdened by assumptions, many of which are implicit in underlying cases. Insight into the nature and impact of underlying assumptions in each method is essential to the proper use of results in mine design.

Jan 1, 2009

By R. F. Winkle

Shortly after World War II, considerable impetus was given to use of truck haulage in open pit mines by the manufacture of large off-highway trucks. Mine management was quick to utilize this more flexible approach to open pit operation and in the ensuing years much time and energy has been spent to improve the basic concept. Dramatic progress has been made in drilling, blasting, loading and hauling with much emphasis placed on equipment improvement. In general, haul roads in open pit mines and quarries have received rather perfunctory treatment in studies of surface mining operations. Their importance to the successful pit operation requires more than a brief sentence saying, "Good haul roads must be maintained." Haulage costs account for approximately one-third of total mining costs including general costs and about 90 percent of the total loading-haulage cycle time is consumed in travel, hence, good haul road planning, construction and maintenance are mandatory for a viable operation.

Jan 1, 1976

By Paul R. Smith

The theoretical requirements for the flotation d large particles are discussed. A flotation machine is described which has components which meet many of the theoretical requirements for the flotation of large particles. The machine's salient features include multiple fine-bubble attachment, froth level feeding, quiescence, shallow depth, and short flotation time. Test conditions and results are presented for the laboratory flotation of 10 mesh phosphate, 4 mesh potash, and 1/2 inch coal. In addition, test conditions and results of pilot plant flotation of minus 14 plus 35 mesh phosphate and minus 14 plus 150 mesh phosphate are also presented.

Jan 1, 1969

By C. Haycocks

Damage prediction during multi-seam mining is an essential precursor to optimizing mine design. Ground control problems associated with interaction are influenced by both fixed geological and site conditions as well as mining variables which may be controlled to varying degrees. To quantify interaction effects across an affected seam a hazard map approach was selected, which allows interaction data to be presented in a form that can facilitate future planning. Study mines were analyzed using boreholes as sources of geological and spatial data, together with information from mine maps which gives the extent of mining activity. To demonstrate the method the safety factor against interactively caused shear failure in the lower seam roof was computed. Input data included depth of cover, inner burden thickness, remnant pillar size, extraction ratio, immediate roof type, seam thickness, percent sand-stone, and rock strength values. These safety factors were then contoured to produce a hazard map. An assumption was made to assign a high safety factor at the outcrop line to permit realistic contouring of the safety factors. The software also allowed mine workings to be drawn onto the map to facilitate interpretation of the overall results. Hazard analysis permits delineation of unsuitable mining areas within a seam. The application of the method for refining mine design and improving reserve recovery is verified using case studies.

Jan 1, 1992

By E. Viet Howard

During the recent expansion of precipitate copper production at the Chino Mines Division of Kennecott Copper Corporation, Santa Rita, New Mexico, local studies of the dump leaching process were intensified. As these studies progressed it became apparent that a reliable method for locating leach solutions within the dump was required, since the contact between leach solutions and the copper-bearing material would determine, in great part, the recovery of values. In the past, the problem of determining leach solution contact has been attacked by various methods, including destructive testing (dump dissection), indirect observation (such as chloride or dye tracers), and mathematical or laboratory model studies. These methods have not proved completely satisfactory for the studies now being developed. Investigation of methods for in situ observation of leach solutions led to consideration of radiation logging in drill holes, which are petro¬leum exploration and development techniques for locating fluids and measuring porosity in the subsurface. Standard oil field logging equipment was leased, modified, and tested. After successful testing, the equipment was purchased for additional studies. Applications and results of the methods are described in this paper.

Jan 1, 1968

By William Gleason

The mining industry is under immense pressure to not only meet increasing demand for minerals, but to do so in an environmentally safe and sustainable manner. Growth in electric vehicles, battery storage, renewable energy infrastructure and data centers to power artificial intelligence (AI) has led to an unprecedented demand for minerals such as copper, lithium, rare earth elements and others. The need for these minerals for national defense has only increased the pressure on the mining industry. Increased geopolitical tensions between the United States, China and Russia has added a sense of urgency as supply chains have become a focal point for the U.S. Department of Energy (DOE) and Defense (DOD) and other government agencies. The International Energy Agency (IEA) predicts that copper demand is expected to grow by 50 percent by 2040 while demand for lithium could increase eight-fold by 2040 and demand for nickel and cobalt could double. The challenges to meet the increased demand include technological, workforce, exploration and environmental issues. From Feb. 22-26, the global mining industry will converge on Salt Lake City, UT for the MINEXCHANGE 2026 SME Annual Conference & Expo where these challenges and others will be addressed by some of the leading minds in the industry. Included in this year’s conference is the Resilient Energy in Mining Symposium, a symposium with input from across SME that looks to address some of the most significant challenges the industry is facing. “Adopting environmental, social and governance (ESG) best practices has become a necessity for the mining industry, not an option. The Resilient Energy in Mining Symposium is crucial for MINEXCHANGE 2026 because it addresses the complex challenges of transforming traditional mining operations to support a sustainable and secure energy future,” Lisa Gonzales, principal engineering at Arcadias and MINEXCHANGE 2026 SME Annual Conference Chair and chair of the Resilient Energy in Mining Symposium said. “Mining is inherently energy-intensive, yet it is also foundational to the global energy transition, supplying the critical minerals needed for renewable technologies. By bringing together industry leaders, the symposium fosters collaboration and actionable change, showcasing advancements and real-world solutions that demonstrate the tangible benefits of resilient energy strategies. This unique forum enables knowledge sharing, inspires innovative thinking, and helps set the standard for sustainable practices across the sector.” The symposium was created in direct response to a SME member survey in 2023 conducted by the Responsible Mining and Underground Construction (RMUC) Strategic Committee. “The survey highlighted a strong demand for technical resources on energy transition, carbon reduction, renewable power, climate change, and ESG reporting,” Gonzales said. “To address this, I collaborated with RMUC to engage committee members from all SME Divisions, ensuring a diverse and comprehensive platform that reflects every aspect of mining. We intentionally structured the symposium to centralize key content and minimize duplication across divisions.”

Jan 1, 2026

By K. E. Laughery

The Nevada Barite industry has experienced a 277% growth over the last five years with a total production of 2,542,000 tons. Total production prior to 1970 approximates 2,700,000 tons dating back to 1907 Annual production, as can be seen in Table 1, has increased from 192,000 tons in 1971 to 723,000 tons in 1975. During this same period U.S production has increased from 825,000 tons to 1,056,000 tons. Nevada is now the leading producer with 69% of the market. The increase in the Nevada barite production is, of course, directly related to the increased demand for weight material coupled with the lack of other sources and the relative economic advantage of the Nevada barite, A significant tonnage of Nevada barite is utilized in the non-oil well market, principally at FMC's barite chemical plant at Modesto, California; however the growth has been in the oil well market.

Jan 1, 1976

By Drummond Earley III

The U.S. Bureau of Mines is currently conducting laboratory experiments to study the reactions occurring during in situ leaching of oxide copper ores hosted by biotite-poor granite and biotite-rich granite porphyry. Detailed pre-leach and post-leach petrographic examinations of the rock samples are combined with the leach solution chemistry resulting from core leaching experiments to enable an evaluation of the various reactions which are responsible for the observed fluid chemistry. The information resulting from these laboratory studies is being utilized to support the design of the Bureau's ongoing field research project at the Santa Cruz deposit near Casa Grande, AZ. Atacamite and chrysocolla are the primary copper minerals present in this deposit, and both are readily soluble in the dilute 5% sulfuric acid solutions used in these experiments. In addition to the dissolution of copper minerals, biotite dissolution also occurs during the experiments, contributing K, Mg, Fe, and Al to the leach solution. The biotite dissolution appears to be non-stoichiometric, as it is progressively altered to vermiculite and finally, amorphous silica. While K, Mg, and Fe concentrations in solution steadily increase with time, Al quickly reaches a maximum, and then remains relatively constant for the remainder of the experiment. This suggests that Al saturation is achieved, and this Is supported by the presence of precipitated Al sulfate and aluminosillcate clay mineralization in the post-leach rock samples.

Jan 1, 1990

By Erica McGlynn, Brian Negrea, Lance Jackson

There was no need for the people of Cleveland to ask “Where does the raw sewage go? We want to know!” because it was clear. The raw sewage was being discharged into Lake Erie during heavy rainfall events due to the outdated design of the combined sewer system. In efforts to resolve this ongoing issue for the City of Cleveland, the Northeast Ohio Regional Sewer District developed Project Clean Lake in collaboration with the US EPA. Project Clean Lake is a 25-year, $3 billion program consisting of seven large-diameter CSO storage tunnels to be constructed beneath the city’s existing infrastructure. The first four tunnels have been completed using traditional hard rock TBM excavation methods. The fifth tunnel, the Shoreline Storage Tunnel Project, presents unique challenges and complexities as it will be the first large-diameter EPB TBM to dig under the City of Cleveland. The project itself consists of one tunnel drive 14,100' (2.7 miles) in length, two pipe jacking tunnels, three large slurry wall shafts, two diversion structures, and three regulator reconstructions. Upon completion of the project, 12 permitted CSO locations along Lake Erie will be taken offline, reducing overflow volumes by approximately 350 million gallons per year. This paper will discuss the current status of construction and the chosen means and methods, including the myriad of nuanced differences between hard rock and EPB TBM tunneling methods. Particular attention will be given to the site preparation, setup, and organization; TBM assembly; and TBM launching practices.

Jun 13, 2023

By M. B. Mooiman

It has recently been discovered that the pH at which gold can be extracted from cyanide solution with primary, secondary, and tertiary amines can be increased 2 to 5 pH units by the addition of modifiers. Under these circumstances gold can be extracted at pH values from 9 to 11, commensurate with the pH range found in cyanide leach liquors. The selectivity of the amines and amine/modifier combinations for AU (CN)[-2] over other metal -cyanide complexes is presented and discussed. In addition, potential applications for the solvent extraction of gold from cyanide solutions are discussed.

Jan 1, 1983

By M. C. Rockwell, G. F. T. Lay

Promising placer gold exploration sites offshore Lunenburg County are drowned pre- and post-glacial river channels and auriferous glacial tills. Gold values up to 5.67 9/m3 have been encountered in the vicinity of the Ovens Peninsula offshore Lunenburg County. Moderate gold values associated with notable amounts of heavy minerals were reported from various other exploration sites in this area. This paper highlights the major geological and gemorphological features for placer gold depositions in southern Nova Scotia. The past to present gold exploration activities nearshore and offshore Lunenburg County are summarized and potential areas for placer gold identified.

Jan 1, 1988

By David A. Holmes

Zeolites are crystalline, hydrated aluminosilicates of the alkali and alkaline-earth metals. Their crystalline framework is based on a three dimensional network of SiO4 tetrahedra with all four oxygens shared by adjacent tetrahedra. The alkali and alkaline-earth cations are loosely bound within this framework structure and may be exchanged, to varying degrees, with other cations or molecular water. Most zeolites can be reversibly dehydrated. At present, close to 40 natural zeolite minerals have been identified and over 100 zeolites have been synthesized. Zeolites are a family of hydrous aluminosilicate minerals whose physical properties provide unique features for a wide variety of practical applications. Zeolites have been known for more than 200 years, but it was not until the middle of this century that their economic potential and widespread occurrence in sedimentary rocks were known. Since 1950, literally thousands of articles and patents have appeared in technical literature, and commercial pro¬duction of natural zeolites may now exceed 1 Mt worldwide an¬nually. In the past 40 years, the zeolite mineral group has changed from that of a museum curiosity to one of an established industrial mineral commodity. According to Breck (1974), zeolites are characterized by the following properties: 1) High degree of hydration, 2) Low density and large void volume when dehydrated, 3) Stability of the crystal structure of many zeolites when dehydrated, 4) Cation exchange properties, 5) Uniform molecular-sized channels in the dehydrated crys¬tals, 6) Ability to adsorb gases and vapors, 7) Catalytic properties. All zeolites are molecular sieves, but not all molecular sieves are zeolites. Activated carbon, activated clays, alumina powder, and silica gels are also molecular sieves. Molecular sieves are materials that can selectively adsorb molecules on the basis of their size, shape, or electrical charge (Clifton, 1987). Commercial application of zeolites is based on the following physical properties: molecular sieving, ion exchange, adsorption, and catalysis. Potential commercial utilization includes hundreds of possible applications. The principal uses at this time, however, are as fol¬lows: -Ammonium-ion removal in waste stream treatment, sewage treat¬ment, pet litter, and aquaculture, -Odor control, -Heavy metal ion removal from nuclear, mine and industrial wastes, -Agricultural use, such as soil conditioner and animal feed supplement. An estimated 800 kt to 1 Mt of natural zeolites were produced and consumed worldwide in 1991. Eight small operators reported collective production and consumption of an estimated 18 kt of natural zeolites in the United States during 1991, mostly for feed additives and for odor control, aquacultural, agricultural, catalytic, and ion exchange applications (Eyde, 1992).

Jan 1, 1994

By Douglas B. Silver

Study Parameters (Status as of February 1993) Time Period: 1989 -1991 151 North American Public Metal Mining Companies Fiscal not calendar year basis 85+% of Canadian and U.S. Metal Production Au, Ag, Cu, Pb, Zn, Mo, Ni, W Results are Preliminary and Research Continues Chicken Little is Alive and Well

Jan 1, 1993

By Kenneth S. Johnson

Oklahoma is the only; state in the nation that is currently producing iodine. The iodine is extracted from iodine-rich natural brines being pumped from deep wells drilled into Pennsylvanian sandstones in the Anadarko basin of northwestern Oklahoma. Woodward Iodine Corp., started in 1977, was the first plant in the United States built for iodine recovery since the 1930s. At present, three companies are operating four iodine-producing facilities in northwestern Oklahoma. The combined production of these facilities, 1,321,000 kg in 1997, is about 26% of the U.S. annual consumption. Iodine is present in concentrations ranging from less than 100 ppm (parts per million) to as much as 1,560 ppm in brines in various Paleozoic strata in the subsurface of northwestern Oklahoma; these concentrations are exceptionally high, and are well above those of any other known brines in the world. Strata with the highest iodine content in the area (Mississippian limestones) have low permeabilities, and thus would yield only small amounts of brine. On the other hand, the lower Morrow sandstones (Lower Pennsylvanian) have a relatively high permeability and are capable of yielding large quantities of brine that average 300-350 ppm iodine. The Morrow brine reservoir was deposited in shallow-water-marine and intertidal-shelf environments and now is buried 6,000-10,000 ft below the land surface. Production is localized to Morrow channel deposits confined to an Early Pennsylvanian paleovalley that is 1-2 mi wide, is about 70 mi long, and is referred to informally as the "Woodward trench." All three companies are producing iodine-rich brines from Morrow sandstones in three different parts of the Woodward paleovalley, and one of the companies also is extracting iodine from oil-field brines coming from several petroleum reservoirs near Dover, about 80 mi east of Woodward. The basic extraction method employed by Woodward Iodine Corp. was used in Louisiana and California operations in the late 1920s. This method is commonly called the air-stripping process. Lower Morrow brine containing dissolved sodium iodide is pumped to the plant through a series of pipelines, where by-product natural gas is separated and processed. The brine is then acidified and subsequently oxidized with chlorine to convert the iodide to iodine. The iodine is air stripped and reabsorbed with sulfur dioxide and water, converting it to hydriodic acid, or process liquor. The process liquor is then processed, using chlorine once again, to crystallize the iodine as a solid. This is then melted and frozen to form a solid product, which is packaged in 110-lb (50-kg) drums and shipped to end users throughout the world.

Jan 1, 1999

By Kenneth A. Grace

Introduction The 1980s have not been kind to the mining industry, especially in the United States. As mineral commodities prices plunged, marginal producers were squeezed out and then major players were forced to cut back or close down operations. Base metal miners suffered the most. Gold was all that glittered. As had been the case throughout min¬ing's history, exploration activity was an early victim of these depressed conditions. Mining companies had to economize drasti¬cally and exploration was deemed a nones¬sential activity. Funding for new explora¬tion ventures dried up as mining was seen as a poor investment. A national magazine even proclaimed the death of the industry. Indeed, ignoring matters of independ¬ence of supply and the relationship of min¬eral production to national security, it was argued that mining was but a small cog in the overall scheme of things in the United States. The industry made a relatively small contri¬bution to the gross national output. We were becoming a service industry economy, re¬member? But what of those countries where mining plays a major role in the economic well-being? In some, mining is the national economy. In a few specific cases, special conditions actually brought prosperity. Copper production in Chile is one example. There, high grade copper, low production costs, and a technically advanced industry reaped the benefits of mine closures else¬where. In most other cases, however, par¬ticularly in the lesser developed countries, whole economies were devastated. This article will show what one major mineral producer, Canada, did to ensure the survival and even growth of its minerals exploration activity during these lean years. Background While Canada is among the world's mining leaders, mining is not its dominant industry. Still, it plays a far more important role than in the United States. It is a major earner of foreign exchange, currently accounting for about 25% of the total value of exports. Through spinoffs and a multiplying effect, it is a significant employer. In the far north, particularly, mining is the major nongovernment industry and a leading factor in the opening up of frontier territory. The industry cannot be allowed to die because it is often the main economic underpinning for vast, remote areas. Thus, exploration for new deposits cannot be cur¬tailed significantly without it having a long¬term negative impact on the very fabric that melds such a large, sparsely-populated ex¬panse of country into a nation. Over the years, Canadian governments have employed various means to encourage the development of new mines. Often, these incentives were tax-oriented, such as the three-year income tax holiday that applied to new mines in the 1950s and 1960s. The advantage of the tax connection is that any such incentive policy can be applied across the board to the 10 provinces and two territories that make up the federation of Canada. This is important because mining, except for the two federally-administered northern territories, comes under provincial government jurisdiction. Mining taxation is a complex give-and-take between the central and provincial authorities. In Canada, expenditure on mineral exploration is an allowable cost against reve¬nue for tax purposes. This works well pro¬vided there is some revenue from which to deduct. New exploration companies, those with no income from mining activities, de¬rive little benefit from this type of tax provi¬sion. Similarly, in times of depressed prices and reduced or nonexistent profits, the tax deductibility of exploration spending loses its value even for the major mining compa¬nies. To encourage exploration in Canada during the lean years, a different sort of incentive was required. The instrument used during the 1980s was again tax connected. It became known as flow-through financing or, simply, flow-through shares. When it assumed its final shape, it worked dramati¬cally. Flow-through shares Flow-through shares are so-named because they permit tax benefits earned by a corporation to 'flow-through' to the share¬holder. Basically, when an investor buys a flow-through share and the proceeds de¬rived by the company from this transaction are used for Canadian exploration, the in¬vestor can claim a deduction for tax pur¬poses as if the exploration expenditure was made by him personally. Flow-through shares go back to the early 1970s when Canada revamped its mineral income tax law. At that time, it permitted full deduction of exploration and development expenditures and provided for an automatic depletion allowance of one¬ third of operating profits from mining. There was also the three-year income tax holiday for new mines. New legislation replaced the depletion allowance with an earned depletion arrange¬ment whereby one dollar of depletion was earned for every three dollars spent on ex¬ploration and development. This earned depletion was `banked' during a transitional period (to 1974). After that it could be deducted from resource profits up to a maximum of 25% of such profits in any one year, with the excess carried forward. To promote exploration and mine de¬velopment in Canada, the earned depletion allowance plus the continued deductibility of exploration and development expendi¬tures permitted the recovery of risk capital before taxation. The three-year tax holiday, however, disappeared. Also, mining com¬panies that did not reinvest in exploration lost the depletion allowance benefit.

Jan 1, 1989