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By Robert B. Parsons

"The Canadian tax treatment of mining operations outside Canada is not as attractive as the treatment of Canadian operations. Further, the Canadian company that invests abroad a host of complex rules. This month, Tax Notes examines some of the major Canadian tax considerations confronting the Canadian company that wants to invest abroad. IntroductionCanadian-based mining companies are investing abroad more than ever before. These foreign investments trigger a complex set of tax rules that are distinct from the rules that apply to Canadian investments. In most cases, careful tax planning is mandatory if the company's tax liabilities are to be minimized. This article summarizes the main tax considerations that need to be taken into account with respect to a mining investment outside Canada.Branch Versus SubsidiaryOne of the first questions that arises in connection with a prospective foreign investment is ""Should we invest directly (that is, in a branch operation), or should we invest through a foreign subsidiary?"". In the case of a branch operation, the Canadian company owns and operates the business directly - that is, the foreign business assets are part of the Canadian legal entity. In the case of a foreign subsidiary, the foreign business operation is owned and managed by that subsidiary. The tax treatment of a branch and a subsidiary can be quite different."

Jan 1, 1994

By Philip W. Holland

This U.S. Bureau of Mines (USBM) report describes a chromatographic method that is used for rapid field determinations of carbon dioxide in natural gas streams at a USBM helium production facility. The method employs a commercially available portable gas chromatograph that is equipped with a 10-m fused-silica capillary column coated with a porous polymer. The instrument operating parameters permit determinations to be performed over a concentration range of 10 ppm to 10 pct with a frequency of 20 samples/h. The speed at which determinations can be performed is an important factor when evaluating efficiency or troubleshooting processes at the helium facility.

Jan 1, 1994

By Robert L. Virta

An asbestos substitute is any material that replaces asbestos in a commercial product. There are many asbestos substitutes, each with its own unique physical and chemical properties. Substitutes can be inorganic or organic, fibrous or nonfibrous, and natural or synthetic. They also can be used as a direct substitute for asbestos or as a replacement product. Probably in no other field is the diversity of substitute materials so great. The concept of asbestos substitutes is not new. The first major effort to develop asbestos substitutes was undertaken by the federal government. The United States has always been dependent on foreign sources for strategic-grade asbestos, and during World War II, the government was concerned that these supplies would be cut off. Strategic-grade asbestos was critical in many electrical and thermal insulation applications (electrical insulation, battery plate separators, flame-proof boards, insulation for rocket components, etc.). A reliable supply of nonstrategic-grade asbestos also was required for general civilian and military applications, such as in brakes, clutches, and construction materials. The government not only initiated a major search for deposits containing strategic-grade asbestos, it also funded research on synthesizing asbestos in the laboratory and developing products that did not contain strategic- grade asbestos. These efforts, as well as those conducted by the private sector, generally were unsuccessful. In the late 1960s and early 1970s, a second major effort to develop asbestos substitutes began because the general public was concerned about the health threat posed by the release of asbestos fibers during the manufacture, use, repair, and disposal of asbestos-containing products. Strict regulations covering the mining and manufacturing sector already had been enacted because of the issue of occupational exposure. The issue then became environmental exposures. Environmental regulations were enacted, and through time they became more strict. The combination of increasingly strict environmental regulation, maturing of some asbestos markets, and liability issues prompted many manufacturers to discontinue asbestos product lines or search for asbestos substitutes. As a result, asbestos usage dramatically declined from the 1970s to the present (Table 1).

Jan 1, 1994

By S J. Brace

About 180 000 tons of explosives are used annually underground in South Africa. Most is loaded into holes less than 50mm in diameter. 75% is consumed in the gold and platinum mines where holes are between 25 and 4omm in diameter and no more than 3.0m in length. The small amount of explosives per hole with extreme conditions of heat, humidity and seismic activity, make the choice of explosive on safety and technical grounds very important to the success of a blasting operation. Taken together with the fact that many underground precious metal operations are now marginal then the choice of an explosive, when its price is also considered, becomes critical to the very viability of some mines.

Jan 1, 1994

By Dennis Hoffmann

"Abstract - Banded iron formation rocks associated with massive sulfide lenses in the Broken Hill Pb-Zn-Cu-Ag deposit in the Namaqualand Metamorphic Complex, South Africa , were investigated with respect to the geochemistry of manganiferous silicate-rich bands. Two common varieties of these are: amphibole- and garnet-rich iron formation bands. The results reveal that the former are enriched in Fe, Mg, Cu, Co and S. The garnet-rich bands are enriched in Mn, Ca, P, Pb and Ba with significant detrital contamination of Ti, Al, Zr, Cr, Y, V, Ni and Nd.The silicate-rich bands have compositions, in terms of, Si/Al, Si/Fe, Fe/Mn, La/Ce and Co/Zn, comparable to submarine chemical sediments which precipitated from hydrothermal fluids. The garnet­ and amphibole-rich bands are interpreted as ""evolved"" and ""immature"" hydrothermal sediments, respectively. The latter resulted from rapid precipitation after exhalation, whereas the former had a longer residence within sea water. The silicate-rich bands both exhibit increasing Mn/(Mn+ Fe) fractions, which are consistent with a variation expected from proximal to distal depositional settings. The prevalence of garnet-rich bands over amphibole-rich bands is interpreted as the result of injection of hydrothermal fluids from a single vent situated along the northwest margin of the Broken Hill deposit."

Jan 1, 1994

By Leonard N. Hill

Cyprus Sierrita Corp. has 16 parallel 5.03 m-diam x 5.8 m long (16.5 ft-diam x 19 ft) primary ball mills, each operating in closed circuit with a nest of cyclones. Before the upgrade to 840 mm (33 in.) cyclones, each mill operated with a nest of five 660 mm (26 in.) cyclones - four in use and one on standby. In this configuration, the mill throughput was 88.5 kt/d (97,500 stpd). Flotation feed averaged 25.9% +212 pm (+65 mesh). The 660 mm (26 in.) cyclones normally operated at an inlet pressure of 34 kPa (5 psi), lower than the inlet pressure of 55 kPa (8 psi) recommended by the manufacturer. The circuit was typically operated with cyclone overflow densities greater than 40% solids to achieve the required throughput. This resulted in inefficient cyclone operation and excessive coarse oversize reporting to flotation. The apexes choked frequently. Larger apexes were tested but reduced the classification efficiency and resulted in circulating loads greater than 800%.

Jan 1, 1994

By John R. Hugens

Modifications in the ALSCAN method of measuring hydrogen dissolved in liquid aluminum have made it possible to monitor the level of hydrogen dissolved in liquid copper. Measurements from the tundish show a correlation with eddy current readings from the continuously cast and rolled copper rod from the continuous casting and rolling system at Amarillo. The measurements also indicate that the copper in the tundish is supersaturated with hydrogen.

Jan 1, 1994

By J. G. Pippenger

The Coteau Properties Company's Freedom Mine is a surface lignite mining operation utilizing large draglines, trucks and shovels, tractor-scrapers, and bulldozers to uncover a single coal seam. In 1989, a work order system was instituted to record data by equipment type, cost, productivity, and distance, and to provide historical information for planning the most efficient and economic use of each equipment type in the mining operation. This report explains how the work order system was initiated, what data is tracked, and how the data is utilized for equipment and project scheduling.

Jan 1, 1994

By Yelloji M. K. Rao, P. Somasundaran

Reagents of biological origin are becoming more and more important in the field of metallurgy, especially in the areas of mineral processing and hydrometallurgy. The advantage of lower operating cost over physical and chemical processes and the capacity to operate with low grade ores make the microbial processes further attractive. In this paper, the role of microbes directly as a reagent and microbially produced reagents or secreted metabolites in mineral processing and hydrometallurgy will be discussed. Adhesion of microbes to surfaces is known to alter the hydrophobicity of minerals. Applications include surface modification to impart hydrophobicity or hydrophilicity on sulfide or non-sulfide minerals and dissolution of precious metals. Microbes can also perform the role of flocculating agents. Biosorption of toxic and heavy metal ions by microbes are finding application in treating tailing ponds. Mechanisms associated with the use for microbially produced reagents are discussed along with some recent results.

Jan 1, 1994

By G. J. Hartman

A presentation of this project was given previously at the SHE Annual Meeting, Denver Colorado February 23-27, 1987. The project concerns the development of in situ recovery of borate products from a deep-seated colemanite deposit in California. The deposit contains some 147 million tons of borate ore containing 6.4% boron oxide (B2O3). This paper involves the numerous changes in the process that has taken place since that first presentation. This paper further explains the reasons for these changes which are primarily environmentally based and secondarily capital requirements related.

Jan 1, 1994

By Aspinall T. O

This paper discusses the identification and assessment of risk for mining developments particularly for open pit mining. A distinction between sensitivity studies and risk analysis is developed, demonstrating the importance of geological and mining engineering judgement -as applied by experienced practitioners to the analysis and assessment of risk in such projects. Technical and financial risk analysis are discussed under: ò mineral resources and ore reserves; ò mining and processing methods; ò project construction; ò financing; and ò costs and commodity pricing predictions.

Jan 1, 1994

By A. K. Stagg

Toxic substances in On solutions can retard biological leaching of copper sulfide dump ores. On solutions were analyzed for metals, organics, and chloride, and showed inhibitory concentrations of aluminum, manganese, and chloride. Inhibition of bacterial activity by the solid fraction of On solution, with and without the organic constituents, was evaluated. Toxicity to bacterial species was evaluated by monitoring bacterial numbers, pH, Eh, and rates of iron oxidation. The On solution solids were toxic at 50 -60% of their field concentration. Most of the toxicity of the On solution was due to the organic fraction. Different SX reagents show varying degrees of inhibition of T. ferrooxidans. Bacterial inhibitory effects of carriers and lixiviants used in the SX plant should be determined so that entrained SX reagents do not retard biological dump leach systems. The reagents used should be the most cost effective and the least toxic.

Jan 1, 1994

By William D. Spielvogel

The Massachusetts Highway Department awarded the Porter Street Outfall Project to the J.M. Cashman Company in November 1991. Timely completion of the Project in one and one half years is critical to the start of the subsequent Third Harbor Tunnel North Approach project. Existing subsurface conditions and the Project's location at Boston's Logan International Airport significantly increases the difficulty of construction. The major contractual work involves relocating a reinforced concrete double box culvert supported on a continuous wood pile foundation. This existing culvert crosses and interferes with the future Third Harbor Tunnel North Approach alignment. Two parallel culverts constructed approximately 20 feet from either side of the future Third Harbor Tunnel alignment replace the existing double box culvert structure. Under the original contract design, approximately 3,100 feet of 14 ft. by 15 ft. reinforced concrete culvert is cast in place adjacent to the west side of the Third Harbor Tunnel and is located in the center of the Airport's main service roadway, Harborside Drive. This culvert is the Porter Street Combined Sewer, PSCS, which handles a combined flow of sewerage from the East Boston community and storm water runoff from Logan Airport. In addition, approximately 2,230 feet of 17 ft. by 15 ft. reinforced concrete culvert is cast in place adjacent to the east side of the Third Harbor Tunnel and is within 20 feet of an active aircraft taxiway and heliport. This culvert is the Bird Island Flats Storm Drain, BIFSD, which handles storm water runoff from the Logan Airport airfield. The existing outfall, on the west side of the Third Harbor Tunnel alignment is to remain in service and is to be connected to the new PSCS and BIFSD culverts. Therefore, a portion of the BIFSD culvert is designed as a bridge to span 128 ft. across the Third Harbor Tunnel excavation during construction.

Jan 1, 1994

The Framework Convention on Climate Change (FCCC) places serious obligations on New Zealand as a signatory nation. This paper examines the nature of the FCCC, New Zealand 's proposed policy response, and the.implications for the minerals industry.

Jan 1, 1994

By James T. Tanner

Mica is a generic term that applies to a group of complex aluminosilicate minerals that have a sheet or plate-like structure and with different chemical compositions and physical properties. All micas form flat six-sided monoclinic crystals with remarkable cleavage parallel to the direction of the large surfaces, which permits them to be split into optically flat films; as thin as 1µm in thickness in some cases (Rajgarhia, 1987). Some micas are more easily split than others. For example, muscovite mica found in pegmatites is more easily split into thin films than is phlogopite. Mica found in mica schist is not as easily delaminated as mica found in weathered pegmatites. According to Dawson (1 949), the commercially important mica minerals are: Muscovite-potassium mica (colorless to pale green and ruby) Biotite-magnesium-iron mica (dark brown to black) Phlogopite-magnesium mica (pale yellow to dark brown) Vermiculite-hydrated biotite or magnesium-iron-mica (bronze yellow flakes) Lepidolite-potassium-lithium mica (pale lilac to deep purple) Some micas of less importance are: Zinnwaldite-lithium-iron mica (gray to smoky brown) Roscoelite-vanadium-potassium-magnesium mica (various shades of green and brown) Mica, principally muscovite, is widely used for industrial applications because of its exceptional physical, chemical, electrical, thermal, and mechanical properties (Table 1). Phlogopite and vermiculite follow muscovite in importance. Biotite finds very little commercial application at the present time. Commercially, mica is used in a number of forms. These forms and their description follow: Sheet mica refers to books of mica either mined from hard rock (pegmatites) or from loosely consolidated clayey material formed from the weathering of pegmatites and alaskites. These books can be readily split into thin film or splittings with specific thicknesses ranging from 0.0031 to 0.10 mm (Davis, 1985). Quality sheet mica is graded into 10 quality classifications (Tables 2 and 3). Books of mica that are flawed with excess inclusions, cracks, or folds (A mica) are called scrap mica and are either ground into commercial products by a dry or wet process. Built-up mica was developed in 1894 as a result of the cost and scarcity of sheet mica, and because many satisfactory electrical parts could be made from it (Preston, 1971). This type mica is formed by layering pieces of mica splittings upon one another and binding them together with inorganic or organic binders. These sheets are then pressed together under high temperature. Mica for this process is produced from pieces of sheet mica too small to be punched into electrical parts (Davis, 1985). Reconstituted mica is mica paper produced by forming a mat of very thin delaminated flakes of scrap mica. This mat is usually impregnated with an organic binder, but is also available unimpregnated. It is dried at 110°C. The mica for this process is either produced from the trimmings of a sheet mica operation or from blocks of A type mica (Davis, 1985, Chapman, 1983). Ground mica constitutes by far the largest use of mica, both quantitatively and application wise. It is produced by grinding and sizing scrap mica (also mica concentrate) obtained from five sources, 1) trimming from sheet mica, 2) A type mica blocks, 3) as a byproduct of spodumene and feldspar mining, 4) weathered pegmatites and alaskites, and 5) metamorphic schists. Synthetic mica is produced by crystal growth in a slowly cooled melt of accurately proportioned chemical oxides. Extended cooling times at a specific viscosity result in larger crystals. Many different micas have been formed by this process; however, fluorophlogopite is the most common.

Jan 1, 1994

By F. W. Petersen

For the past thirteen years, the Universities of Cape Town and Stellenbosch have hosted an annual symposium to discuss topics relevant to mineral processing. Since 1987, this Symposium has been held under the auspices of the Western Cape Branch of the South African Institute of Mining and Metallurgy, and has become one of the main events on the national conference calendar. In 1989 and 1993, the symposia took the shape of international conferences. This year the 13th Annual Mineral Processing Symposium was organized by the two universities, the Cape Technikon, and the local branch of the South African Institute of Mining and Metallurgy, and was held at the Van Riebeeck Hotel in Gordon's Bay.

Jan 1, 1994

By Patricia O. Milley

Two years ago, AlliedSignal embarked on a journey to improve QUALITY. However, the focus of this endeavor was on the CUSTOMER and not the traditional product focus. It wasn't that a focus to improve product quality wasn't fruitful in the past. We've practiced it in the chemical industry for many years with significant results. But our industry today is in a survival mode and yesterday's way of doing business is simply not good enough. In the mining industry, we have to make lug strides in how we do business or face losing our customer base. As you are well aware, other parts of the world are importing our technology at a rapid rate. We must work smarter to stay ahead of our customers ever more demanding need for higher quality at lower prices. With this as a driver, throughout the Corporation we reviewed in depth how we support our customers to keep them competitive and sought to eliminate work which did not help them reach this goal. Our first year of emphasis was on tools: how to hold meetings, gather data, and how to make decisions. This sounds very basic, I know, but you can't begin to imagine how productive meetings can become when you start with an agenda and prework delivered days in advance, and agree at the start of the meeting what should get accomplished. In the second year, we applied these tools to our work processes. We mapped how we do our work, scrutinized each step for value to the customer, and then set to work on how we could do things better. The areas we concentrated on were customer linked commercialization of new products, manufacturing and materials management. Our discussion today will focus on the commercialization of new products.

Jan 1, 1994

By R. K. Will

Granite Construction Company operates a rock quarry in the rugged Santa Cruz Mountains of central California indicated in Figure 1. Open pit methods are used to mine decomposed granite which is processed to produce sand, gravel, decorative rock and asphalt. The quarry is located near the village of Felton about five miles inland from the coast of the Pacific Ocean, and is near the campus of the University of California at Santa Cruz and several California State Parks. The area is heavily forested and is considered by residents to be environmentally sensitive. Because of the scenic beauty of the area and proximity to the San Francisco Bay area, a project such as a quarry receives the attention of regional residents and environmental organizations.

Jan 1, 1994

By Phillip B. Messersmith, Emmanuel P. Giannelis

"A versatile in-situ polymerization approach is described for the synthesis of polymerceramic nanocomposites consisting of two-dimensional layers of mica-type silicate (MTS) within polymer matrices. Functionalized, organically modified mica-type silicates (OMTS) were used to promote delamination/dispersion of the host layers and initiate polymerization of organic rrionomer. Epoxy nanocomposites prepared in this manner exhibit substantial modulus reinforcement at low silicate loadings. The water vapor permeability of the poly(?-caprolactone) nanocomposite containing 4.8% silicate by volume was reduced by nearly an order of magnitude compared to pure poly (?-caprolactone).IntroductionPolymer matrix nanocomposites are a relatively new class of materials with dimensions typically in the range of 1-100 nm.1 In general, because of the ultrafine phase dimensions involved, nanocomposites exhibit new and improved properties when compared to their micro- or macrocomposite counterparts. We as well as others are currently investigating the design, synthesis and characterization of polymer-ceramic nanocomposites. Our effort, in particular, has focused on the use of mica-type silicates (MTS) with various thermoplastic and thermosetting matrices.2-5MTS's belong to the general family of 2: 1 layered silicates. Their crystal structure consists of layers of two silica tetrahedral sheets fused to an edge-shared octahedral sheet of either aluminum or magnesium hydroxide. Stacking of the layers leads to a regular van der Waals gap or interlayer.6 Isomorphic substitution within the layers generates negative charges that are counterbalanced by cations residing in the interlayers. Although the natural forms of MTS's usually contain hydrated Na+ or K+ ions, ion exchange reactions with organic cations (e.g. alkylammonium ions) can render the normally hydrophilic MTS's organophilic."

Jan 1, 1994

By Johnson G. D

The typical management systems used to address the issue of operating risk centre around technologies that identify, analyse and evaluate the risk factors. These logical systems such as HAZOPs, Fault Tree Analyses, etc rely heavily on technical considerations and process flow analysis. However, several research projects, across industries and countries have clearly shown that up to 80 per cent `operating risk' is determined by the actions of workers, supervisors and managers. Yet, most of the focus of risk management is on technical and procedural issues. This suggests that a significant imbalance exists in our management systems and that industries are unlikely to show significant improvement on current levels of safety performance. Effective risk management must include the intangible element of the organisation psychology towards risk. A practical and theoretically sound approach had been researched and developed in and for the mining industry. This paper describes the approach and methodologies applied at the Cosmo Howley Gold Mine in the Northern Territory, where an inclusive approach to managing financial and operating risk was followed. The Cosmo Howley Mine showed a dramatic reduction in lost time injuries and improvements in financial indices - providing conclusive evidence of the link between management effectiveness, safety and productivity. This `triangle' has often been the subject of speculation and theory. It is demonstrated in this paper how the management team of Cosmo Howley focused their practices and systems on the improvement of organisational dynamics, ensured tangible and clear focus on parameters of costs and safety and how the improvement process was managed. It is concluded that the improvement process did not require a `major re-engineering' of the organisation. The organisation culture changes that occurred were incremental, planned and effective. It entailed the implementation of sound risk management methodologies, and ensured that a significant emphasis was placed on an aspect that is defined as `organisational dynamics'.

Jan 1, 1994