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By Lynn C. Jacobsen

Among the unforeseen consequences of the 1973 Arab oil embargo has been a considerable array of new or increased taxes on the so-called energy minerals. These taxes will be the subject of this report. Both Federal and State taxes have been enacted, but I will be concerned mostly with state severance taxes and particularly those on uranium. Severance taxes are considered to include all taxes having the distinctive feature of being applied on a natural resource at the stage of extraction. The tax may be based on units of production or on value, and if on values it may be on gross value or on gross value less either arbitrary or cost-related deductions. The tax has a number of aliases - resource excise tax, conservation tax, privilege tax, mining excise tax, ad valorem production tax, and more - and this makes comparison of tax burdens among states difficult. The windfall profit tax on oil is an example of a severance tax at the Federal level. Severance taxes are an established feature of state tax systems, but they continue to be a controversial issue, and proposals to raise or modify existing severance taxes are regularly submitted to the legislatures of the Western energy producing states. No concensus exists as to what is a reason- able and proper level of severance taxation or to the form it should take. The taxes which have been adopted by the various states reflect the interaction of a variety of interests and the specific circum- stances in each state. What follows is a summary of theoretical, practical, and emotional viewpoints and arguments that surface in any statehouse in which a severance tax bill has been introduced. The New Mexico experience will be heavily relied upon. THE ECONOMISTS Marginal effects. A severance tax which is based on a gross percentage of revenue or on units of production is a constant addition to variable costs, and to the mine operator has the same effect as any other increase in operating costs. The direction of these effects is straightforward: the tax will cause the property to have a lowered present value, to be mined at a lower rate than without the tax, raise the minimum grade that will be mined, lead to lower total recovery, make marginal properties sub-marginal and discriminate in favor of richer, more profitable operations (Lockner, 1965; Steele, 1967). In the short run, production facilities are fixed and imposition of a severance tax will have little effect on production levels. In the longer term, capital is mobile and investment and exploration expenditures will shift from minerals and jurisdictions with high taxes to those with low taxes. Over a considerable range of taxation the effect will be to change the relative position of the taxing state, but an overly optimistic evaluation of the capacity of mineral producers to absorb a tax can bring an industry to a halt. It is generally acknowledged that imposition of high severance taxes on taconite in Minnesota stopped development completely, and that only the adoption of a constitutional amendment limiting the amount of taxes that could be imposed in the future brought the firms back and encouraged them to make the huge investments required (Weaton, 1969). A tax which is a percentage of the net operating income (gross revenue less cash operating costs) does not influence the cut-off grade for recovery nor change the time preference for extraction, and hence, is free of the negative features of the tax applied to gross revenues or units of production. In theory it is a more efficient tax but relative administrative complexity and inherent difficulty in predicting revenue have discouraged its use. The Wyoming severance tax on uranium, which uses grade of ore as well as price in establishing taxable value, is the most cost related, and hence, the most neutral and efficient of the various state severance taxes on uranium. Economic rent. Despite the discrimination and the anti-conservation aspect inherent in most severance taxes, economists generally endorse their use because they are seen as a vehicle to appropriate rents - that is, returns greater than the long-run competitive supply price. Conspicuous examples of supposed economic rents are the returns to oil producers because of the OPEC cartel, the returns of the uranium producers under AEC buying contracts in the 19501s, and the high prices obtained by the uranium producers for contracts entered into in the 1976-1979 period. Mining of coal in the Western states is believed by some to generate huge economic rents because of the OPEC caused increase in price of a competitive fuel (McLure, 1978, p. 261), and possibly because of clean air regulations favoring the burning of low-sulfur coal. In theory, such surplus returns could be taxed completely away without affecting supply. In practice, the situation is more complex (Steele, 1967, pp. 234-236); economic rent of mineral production is an elusive quantity involving as it does replacement costs, and technical and market risk, and it, like beauty or pornography, probably exists mostly in the eye of the beholder. Rent may also be perceived to be present in the upper portion of a cyclic market which also has a downside. Where rent exists, it is almost certain to be short-lived - cartels self- destruct, government subsidies end, competitive adjustments occur - but the taxes imposed to capture it tend to be immortal. There is little doubt that the perception of un- usual and undeserved (obscene) profits in the mid- and late 1970's was a major factor in the adoption of energy mineral taxes strikingly higher than had been previously considered. At the New Mexico legislature of 1977 supporters of a moderate tax were repeatedly confronted with some variant of the statement, "You can't expect me to believe that a

Jan 1, 1982

By L. G. Austin, P. T. Luckie, R. R. Klimpel, R. S. C. Rogers

1. INTRODUCTION The Bond method(1.2) for sizing tumbling ball mills has been used successfully for many years. The primary purpose of the Bond calculation is to predict the mill size and mill power to give a desired capacity (Q tph) from a wet overflow ball mill in normal closed circuit operated with a circulation ratio of 2.5. The input to the calculation is the make-up feed size characterized by the 80%-passing size in micrometers (xG), the desired circuit product size characterized by the 80%-passing size (xQ), and an empirical grindability number (the standard Bond Work Index) determined by a standard test. A series of empirical correcting factors(2) are used to convert the results to open-circuit or dry grinding in grate discharge mills. The Bond method has two major engineering advantages: (i) it is very simple; (ii) experience has shown that it works for many circumstances, as a reasonable approximation, because it is based on direct conversion of test data to results measured on industrial mills. There are four main disadvantages of the Bond method. First, there will be a range of error for any specific mill and material and set of operating conditions because the method does not explicitly include several variables which are obviously important: (i) recycle ratio and classifier efficiency (ii) mixture of ball sizes in the mill (iii) variations of residence time distributions with mill geometry and slurry density (iv) lifter design (v) slurry rheology (vi) different underfilling or overfilling of the mill as flow rate is changed. Second, the Bond method explicitly assumes that specific grinding energy E is not a function of ball load, whereas industrial practice and laboratory tests(3) show that the specific grinding energy (to go from a specified feed to a specified product) is less for lower ball loadings than the ball loading for maximum mill capacity. Third, the method uses only the 80% passing size of circuit feed and product to characterize the size distributions, whereas mill capacity in general must depend on the shape of the feed size distribution and the product size distribution. The prime example of this is the use of the reverse closed circuit which removes some fraction of the make-up feed before it is

Jan 1, 1982

US 4,183,899 - Flow process for chlorinating ilmenite. A laminar flow of a mixture of ore, a carbonaceous reductant, and chlorine gas or other chlorinating agent is passed through a reaction zone maintained at a temperature of 1350 to 1950°C and a product stream Including titanium tetrachloride is withdrawn from the zone. The atomic ratio of carbon to oxygen in the feed mixture is greater than 1:1, and the molar ratio of chlorine to titanium solids In the product stream is between about 0 5.1 and 2:l. Titanium chlorides and metallic iron are recovered separately from the product stream. J.P. Bonsack, assigned to SCM Corp, Jan. 15, 1980 21 pp. (423-79). Filed. 3-10-78 (885,442).

Jan 1, 1982

By Robert R. Turner

This paper discusses wet and dry primary autogenous and semi-autogenous grinding, including a description of the equipment and its mode of operation, testing and the scaling-up of test data. Lists of selected literature references are included.

Jan 1, 1982

By Hassell E. Hunter

The Wyoming Minerals - Conoco Crownpoint Joint Venture represents the first time that big hole drilling has been exclusively used to develop a privately financed mine. Three shafts, one ten feet in diameter and two six feet in diameter, have been successfully drilled to depths of 2243', 2188' and 2188' respectively and lined with hydrostatic designed steel casing. The largest shaft is to be used to as a development shaft to handle muck and water from enlargement and station excavation of the other two shafts. A reverse fluid air assist circulation system with potassium base mud was used during drilling. The mud was cleaned by settling in steel lined tanks with assistance from cyclone type sand separators. Deviation was monitored with wireline gyroscopic surveying instruments at 30 foot intervals. Horizontal departure did not exceed 16 inches off perpendicular. Casing was designed to withstand full hydrostatic pressures with a 1.5 safety factor for the large shaft and 1.25 safety factor for the two smaller shafts. All casing welds were x-rayed prior to lowering the casing into the hole. Cementing the annular space completed the operation. The total time to mobilize, drill and move off the three shafts was 363 days. The drilling operation was completed ahead of schedule and under budget.

Jan 1, 1982

By Robert L. Davidoff, Rodney D. Rosenkranz

In order to determine copper resource data and production costs for major market economy mines and deposits, the Bureau of Mines has performed detailed engineering and economic analyses on 271 of the world's most significant copper deposits. At the demonstrated resource level, copper potentially recoverable from these deposits is estimated to be 325 million metric tons, 180 million tons of which would be from Pacific Rim countries. Chile has the largest known copper resources of any country and accounts for nearly 45 percent of the copper avail- able from Pacific Rim countries. At $1.00 per pound, in January 1981 dollars, an estimated 80 million metric tons of copper are potentially economically recoverable from Pacific Rim deposits. At this same price, analyses indicate that these deposits could economically produce about 2 million metric tons of copper per year. Sensitivity analyses reveal that if operating costs were to decrease 25 percent, with copper at a price of $1.00 per pound, total copper economically recoverable from Pacific Rim countries could increase by about 10 percent; a 25 percent increase in operating costs could lower economically recoverable copper by 50 percent. Analyses also indicate that byproduct prices are important. If byproduct revenues increased 25 percent, at a copper price of $1.00 per pound, an additional 2 million metric tons of copper could be recovered; if byproduct revenues decrease 25 percent, about 5 million metric tons less of copper metal would be available. Since the January 1981 date of this study, inflation and decreases in copper and byproduct prices have greatly affected the profitability of the world copper industry. Many producing mines have curtailed or suspended production, and development of many non- producing deposits has been postponed.

Jan 1, 1982

By K. C. Carriere

INTRODUCTION The purpose of this section is to introduce the reader to the concepts of computer control of grinding circuits, and to flag some of the opportunities to be encountered, but without becoming overly involved in details of process, equipment or software. It is assumed that the reader has some familiarity with computer hardware and software, and in particular with the grinding process. The paper is organized into four parts: a general commentary of the need for computer control of grinding, a discussion of the process considerations involved, a more detailed elaboration on the current state of applicable computer technology, and a case study indicating one approach towards such a project. A brief installation survey and references for further reading are also given. This section will primarily deal with supervisory computer applications. Direct Digital Control and microprocessor systems are generally used as replacements for analog controls and thus are not considered in depth. Many configurations of grinding circuits exist, necessitating certain assumptions. Since many new concentrators use an open circuited SAG mill feeding a closed circuit ball mill, this configuration is used as a model although the principles stated can be extrapolated to any circuit. Motivation The use of computers for industrial control has been one of the dreams of control engineers and operators alike for many years. The concept of a plant running at optimal conditions with minimal operator involvement is very attractive from economic and technical standpoints. Accomplishment of this goal has been a long struggle, but today likelihood of success of such a project is very high, considering the reliability of modern hardware and the sophistication of available software. The primary motivation of any control system must be economic, i.e. it must pay for itself and make money for the owner, directly or indirectly. In grinding control the benefits which can be expected include: a) Higher through-put b) More uniform product in particle size, density and volumetric flog: c) Reduced operating costs including media consumption, power consumption and liner wear

Jan 1, 1982

By David Yob

INTRODUCTION This paper is intended to fulfill three major purposes. The first of these purposes is to narrate the improvements to the ventilation of Northeast Churchrock Mine and the subsequent reduction of the radiation levels. The second major objective is to pass on to persons unfamiliar with the ventilation of radon and radon daughter producing mines some of the most important characteristics of airborne radiation and the control thereof. The third objective is to describe the use of a computerized digital mine ventilation simulation. This description is not only of the usage, but also some of the important methods and techniques involved in the usage. This paper is not intended for the persons with extensive experience in these areas. However, to those persons who are just becoming involved with either ventilation of mines with airborne radiation problems or persons interested in computer simulation, this paper should be of some interest. It is the author's experience that most of the information on either computer simulation or airborne radiation control either assumes an extensive knowledge on the part of the reader, or does not address the direct application of the information contained in these articles. It is for that reason that this paper intends to concentrate on the actual application of the topics covered. INITIAL STATUS In the first quarter of 1980, the author and others became involved with the ventilation effort of the Northeast Churchrock Mine. At this time, this team began an investigation of the mine ventilation with the intent of reperforming a mine pressure survey. During the course of this investigation, it was determined that the ventilation system was inadequate. During this first quarter, the responsibility for ventilation of the mine was transferred to the author and his team. It was determined that the system that was in use was that of the single entry or haulage return type. In this type of system, there is very little direct control of the airflow, and it is not an effective type of ventilation for mines that experience problems due to airborne radiation. In a single entry, or haulage return, system there is no separate return system provided. In the system, as we found it, the only source of intake air to the ore level working areas was from the track level. This intake air was forced into the ore level, or stope level, via bulkhead fans installed on raises from the track. This air, after being used in the working areas, was then allowed to find its own way back to the exhausting vent holes. There was essentially no control of this air from the bulkhead fan discharge to the vent hole. The only control used was by the sizing of the fans on the raises. The main portion of this air used the haulage and access drifting for return. Due to the large horsepower used in these bulkhead fans and the large resistance both between the areas to the vent holes and inadequate intake ducting, the stope level pressure was higher than the track level. This pressure differential caused a severe recirculation between the stope level to the track level. This recirculation also caused a severe pre-contamination problem to the supposedly fresh intake air, making his air nearly unusable for working area ventilation. [ ] It was found at the time our ventilation effort began, that the radiation levels were high enough to make compliance with the four working-level month per year standard impossible. For this reason, we had to spend several months driving costly development drifts to implement a completely different type of ventilation system. Before describing the system that was implemented to solve the problems that were discovered during our initial investigation, some discussion of the characteristics of airborne radiation due to radon and radon daughters is needed. RADON CHARACTERISTICS AND RELATED TECHNIQUES One of the most notable characteristics of radiation contamination caused by radon and radon daughter decay is that once the contamination has entered the airstream, the radiation levels as measured in working levels will continue to rise without any further contamination. This radiation rise will eventually stop

Jan 1, 1982

By Tony B. Szwilski, K. Unrug

INTRODUCTION Since the introduction of longwall coal mining systems, reliable predictions of roof support requirements at the face and the roof caveability in the gob area have been major contributors to the success of the longwall face by means of safety and face productivity. That is, the successful operation of a longwall is well-served by good regular caving of the gob. In recent times, with the advent of increased coal face mechanization and capital investment, the evaluation of the feasibility of longwall mining has become essential. In the United States, where a face unit for a face length of about 150 metres may cost around $6 million, a quantitative system that would assist in selecting the best equipment for the coal would prove extremely beneficial. There have been many such varied investigations in the past few years. A vast -amount of work has been invested principally by West Germany [3, 7, 8, 91 , Poland [I, 101 , United Kingdom [4, 5, lo], France [4], and South Africa [4]. It is the object of this paper to review this previous research work and give an outline that may be used as guidelines for long- wall evaluation. Essentially, for the initial design phase for a longwall system, account must be taken of the geometry of the coal panel, its position relative to the surface (depth), direction of the coal cleat system, faults and in-situ stresses and other neighboring workings in the same coal seam and other seams both above and below. The advance of the coal panel disturbs the stress field and in doing so creates an abutment zone around the face. At this stage the condition of homogeneity of the surrounding rock mass does not apply. The magnitude of the rock strata pressure may exceed the ultimate strength of the rocks and create zones of clastic, plastic and elastic material, the limits of which are difficult to determine. The collapse of the gob and resulting expansion of the displaced waste roof rock, create a statically undefined support complicating an already unclear rock structure. For example, it is often a point of debate whether, indeed, the vertical strata pressure develops to regain the original magnitude of virgin stress. Under these post-failure circumstances an analytical approach based on simplified and idealized assumptions can only be considered a very general approximation. Theoretical concepts, however, may be adequately supplemented by empirical methods that are based on numerous underground observations and surveys [3, 4, 7, 8]. These methods employ the use of rock indices that very handily correspond to the competence of the roof rock mass. Scale model work [3, 41 , using equivalent materials representing the surrounding rock mass within the coal seam zone, have given valuable qualitative and sometimes quantitative data in addressing the behaviour of the rock mass around longwall panels. To characterize the state of art of caveability predictioqthe principal concepts will be reviewed with special emphasis placed on practicality for the planning of longwall operation. It has been the general observation of the authors that many of the literature surveys published in English often neglect reference to other international mining literature. It is with this point in mind that an overall review has been written including mining concepts identified with the principal coal mining countries. THEORETICAL CONCEPTS Arching Theory For the development of this theory, assumption has been made that an extracted height, h, in a coal seam results in an extracted panel of width, w . Also, the coal seam is horizontal and the rock strata of both the roof and floor are homogeneous. The primary (virgin) stress distribution will change in the roof as well as the floor. As a result of lack of support caused by the excavation (in the gob area) an additional load is developed due to the redistribution of the load around the sides of the panel, referred to as the abutment, R, where: [ ]

Jan 1, 1982

By F. Milton Lewis, James L. Coburn

In this paper the economics for a conventional comminution system, consisting of three stage crushing and one stage ball mill grinding, are compared to a semi-autogenous/ball mill comminution system. Capital and operating costs for a copper concentrator in Arizona at two levels of production, 20 and 40 thousand short tons of ore per day, are estimated. In order to minimize the investment and operating costs, large size equipment is selected for all four cases. These cost data are evaluated and conclusions are presented.

Jan 1, 1982

US 4,185,996 -- Removal of arsenic and sulfur Impurities from arsenic-containing cobalt sulfide ore. The ore is oxidized In air at a temperature of 700 to 800°C for 3 to 8 hr to drive off the bulk of the sulfur The oxidized ore 1s heated with a reducing gas at a temperature of 700 to 800°C for 2 to 6 hr to volatilize arsenic, and the final calcine 1s leached with an acid to eliminate substantially all of the remaining arsenic. A.R. Zambrano, assigned to Hanna Mining Co Jan. 29, 1980. 3 pp. (75-2). Filed. 2-13-78 (877,002).

Jan 1, 1982

By T. W. Doe, J. Noorishad

The problem of fluid flow from a well into a horizontal fracture has been studied using a nonlinear coupled hydromechanical finite element model. Such an approach is required due to the strong nonlinearity and anisotropy of deformation and fluid flow moduli introduced by the presence of the fracture. The resulting nonuniform total stress field invalidates the application of the conventional fluid flow techniques to the problem. Stable convergent solution from the above analysis are verified by a coupled steady state algorithm.

Jan 1, 1982

By G. F. Moulton

Extraction of minerals from Searles Lake brines has taken place since 1873. Early operations for borax and raw trona found on the surface were expanded after 1914 to include potash, salt cake, and soda ash. A new soda ash plant now in operation will double area production. The evaporite beds were formed by desiccation of eastern Sierra runoff. The resulting series of brine-bearing salt beds supply the fluids necessary to feed the area chemical plants. Production methods include evaporation and crystallization for potash, borax, and salt cake; carbonation of brine to recover soda ash; and organic extraction of borax.

Jan 1, 1982

By George W. Friesen

This paper presents the historical trend and de- fines the causes of drilling cost escalation in the Gulf of Mexico during the 1970's. The three major components of escalation are: 1) inflation, 2) supply-demand imbalance (demand pull) and 3) decreases in drilling efficiency. The decade was divided into three periods. During each period one component of escalation was responsible for most of the rise in costs. From 1970 through 1973 only inflation pushed costs upward. During 1974 and 1975 a supply- demand imbalance caused most of the escalation. Since 1975, decreases in drilling efficiency have produced the major component of escalation. During any one year or period of years, the sum of the three components will give the total escalation rate. The reasons why different components contribute more toward escalation during certain years than others are shown by following the timing of oil and gas price increases, the overall quality of the acreage offered each year in offshore lease sales and the resulting drilling activity.

Jan 1, 1982

By P. Somasundaran, D. R. Nagaraj

Based on our finding that commercial copper chelating solvent extractants such as LIX65NR and LIX63R are excellent collectors for copper minerals, a detailed study was made using several water-soluble chelating agents belonging to the class of aromatic hydroxyoximes and having a gradual structural variation. A basic study of the system salicylaldoximetenorite was also carried out. Microflotation tests as a function of concentration of oxime, pH, addition of copper, etc., using oxidic copper minerals such as chrysocolla and tenorite, and batch laboratory flotation tests using synthetic mixtures of quartz and oxidic copper minerals were carried out. The results have demonstrated that the hydroxyoximes studied have comparable collector property, and in all cases the oxime was found to be partitioned between the mineral surface and the copper in the bulk aqueous phase in the form of a bulk copper chelate. The occurrence of the latter could be accounted for by formation in the bulk phase of a chelate between oxime and copper released from the mineral and/or by the detachment of the surface chelate. The role of surface and bulk chelates in flotation is discussed based on the results of partitioning of chelating agent into bulk and surface chelates in the salicylaldoxime-tenorite system. The effect of structural aspects such as isomerism and substitution in the molecule on the collector property of the oximes is also discussed. Substitution on oximic carbon by alkyl groups is found to promote collector activity. Only the anti-isomer has the ability to collect.

Jan 1, 1982

By James H. Taylor

"Titanium is a widely distributed, dark grey metal1ic element found in small quantities in many minerals. It has no important uses." Happily, this early quotation proved to be wrung; titanium has, on the contrary, found a large number of very important uses. The error in the 1926 quotation illustrates the problems associated with forecasting the future development of any metal. 'The paper will nevertheless attempt to estimate what will happen to the European titanium industry over the coming decade with slightly more accuracy. It was not until 1955 that anything other than pilot plant facilities were installed in Europe. In 1955 IMI's plant in England, two plants in Germany, one in France and one in Sweden came into operation. All the companies associated with titanium installed melting furnaces but only IMI Titanium has forging and rolling facilities devoted solely to the production of titanium. The other firms rely on the use of equipment of their parent steel companies for processing the me1 ted titanium ingots.

Jan 1, 1982

By C. Jardine, D. Freudenreich

The system concept is to minimize costly unscheduled equipment breakdowns by replacing components earlier than their life expectancy. Periodic unit services are scheduled according to preset constraints. Service sheets are generated by matching a job and component master listing based on assigned cyclic component lives. The system can account for all man-hours reported, and history information can be selectively retrieved. By reducing unscheduled equipment shutdowns, this system allows for better manpower utilization and an overall improvement in equipment reliability and availability.

Jan 1, 1982

By Robert :H. . Lesemann

I recently gave a talk at a seminar on mine development in the Eighties. I had to present CRU' s long-range market outlook for copper, lead, zinc, nickel, molybdenum and silver. In reviewing the recent history of each metal, and our projections, I tried to find some common pattern of behavior that could prove a guide in projecting future market behavior. When you sweep aside your input-output models and econometric equations, what you seem to be left with is this: "When a market goes through a prolonged period of price weakness, you can usually look forward to a period of considerable improvement. " "When a market goes through a prolonged period of price strength, you can always anticipate a prolonged period of price weakness." Stated another way, "The better things are, the worse they will get."

Jan 1, 1982

By Simon D. Strauss

The world appetite for minerals in the, third quarter of this century grew at a higher rate than had been anticipated. To illustrate, consider the experience of four, commodities. Excluding the Communist bloc, sometimes referred to as the centrally planned economies, demand for aluminum increased at a compound rate of 8.6% between 1950 and 1975,; copper rose by 4.4%; iron ore by 5.5%; and tin, the laggard in the group, by 2%. Except for tin, the figures are substantially greater than growth rates anticipated in 1950 in the Paley Commission report and other studies. The growth rate was not evenly distributed in geographical areas. Professor Wilfred Malenbaum of the University of Pennsylvania did an interesting study breaking these figures down as among three principal sources of demand -- the United States, other industrialized nations (which he referred to as the "rich lands"), and the developing world (which he referred to as the "poor lands").

Jan 1, 1982

By Mark David Rankin

This paper represents a general assessment of the primary factors driving the market for mobile offshore drilling rigs and the utility of those factors as choice variables for the offshore drilling program planner.

Jan 1, 1982