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By James Marsh

INTRODUCTION Economists have long expressed suspicion of the economic theory of natural resource exhaustion, even in writing articles which have contributed to it (1). Indeed, the gap which separates the pure theory from practical management seems unusually wide. It is doubtful whether a mine manager could possibly know enough about the relevant parameters of his mine to steer it along the optimal paths described by the theorists (2). Nevertheless, enough faith in the theory remains that mine managers are suspected of being a separate breed whose behavior must be studied in special courses using specialized text-books, collections of readings, and journals (3). The implied hypothesis, that mines and natural resource firms are managed differently than other firms, is the subject of this paper. In the next section the theory is developed and analyzed. In section III, I discuss the implications of the statistical results that have been obtained. Finally, conclusions are reserved for section IV. THE MODEL A key difference between the traditional theory of natural resource production and that of other forms lies in the set of variables which ire assumed to jointly determine the quantity of output the firm will produce. Output, in the non-resource case, is assumed to be a function of k clearly definable and distinguishable inputs or factors of production, viz., y = f(xl, x2, ..., xk), (1) here

Jan 1, 1977

By R. D. Brown

"AbstractOver the past five years, tax rates in the Canadian mining industry have skyrocketed upward across Canada, as both federal and provincial governments have sought to increase their share of mining revenues.However, the past few years have not only brought high tax rates to the industry, but also a number of important new federal and provincial tax incentives.In large part, these incentives ~ special credits or reduction in tax for carrying out specific exploration, processing or other activities - have helped to moderate the adverse effects of the higher tax rates and have provided inducements for exploration and processing activities which might not otherwise have been undertaken.However, the effectiveness of certain of these incentives can be questioned: our over-all tax structure now consists in large part of punitively high marginal rates with some extraordinarily generous but capricious tax reductions for specific activities and may not be in the best long-term interest of either the industry or the nation.A rational tax structure, with moderate and stable tax rates, together with reasonable incentives confined to activities specifically requiring them, could be a more effective spur to investment than the present tax and incentive jungleIntroductionIN THE YEARS since federal tax reform, the mining industry in Canada has faced a continued escalation in its tax burdens as federal and provincial governments have leapfrogged each other in imposing new and higher taxes on the industry. The result has been that marginal tax rates imposed on mining and processing activities throughout Canada have jumped to hitherto unparalleled levels."

Jan 1, 1977

By Blair J. R

A Train Performance Calculator (TPC) is an essential tool in railway operations, as a means of acquiring quickly a precise measure of the performance of the system. Traditionally the TPC was used in the form of program for a large computer. By employing an efficient integration algorithm and tailoring the program to suit the computer system it is shown that it is possible to devise a TPC for a mini computer. The resulting low running costs and flexibility of operation makes this a useful design tool. This TPC was developed to study problems associated with a single track railway operation. It was applied specifically to study the railway operated by the Mt. Newman Mining Co. Limited in the Pilbara region of W.A. to transport iron ore from the mine to the port. The TPC was used to calculate the effects of changes to locomotive power, to train size, to the track and to the amount of traffic. Its accuracy was checked by comparing its performance with that of the actual trains.

Jan 1, 1977

By Staude W, Rosser A

Due primarily to the publication of the Fitzgerald Report the impact of taxation on the mining industry and the amount of taxes actual- ly paid by the industry have become items of intense debate. However, the discussion has been governed more by impassioned rhetoric than considered logic. It is equally as wasteful to the economy for the mining industry as a low cost efficient export earner to be punitively taxed, as it is for the industry to be given excessive taxation assistance. A comparison of the effect of five tax- ation policies on the cash flow of a capital intensive mining project is presented. The policies considered are Liberal 1969, Liberal 1976 with and without the coal levy, Labor 1975 and Labor 1976. The mining project used in the analysis is modelled on published estimates for the proposed Nebo coal project. The analysis is equally applicable to any large mining or petroleum development.

Jan 1, 1977

By W. B. Coker

A helicopter-mounted lake-sediment and lake-water survey was carried out over Grenville rooks in the Renfrew area (parts of Renfrew and Lanark counties) during four days of October, 1975. In the course of this survey. 1150 square kilometers were covered, with 246 lake-sediment and 276 lake -water samples collected from every body of water on which the helicopter could land. Sample sites, which averaged one per 4.6 square kilometers, included lakes, ponds, beaver ponds, swamps and marshes. Lake-sediment samples were taken using a G.S.C. sampler. Waters were collected directly into polyethylene bottles. At each sample site , surface and bottom-water pH, dissolved oxygen content, conductivity and temperature were measured using a Martel. Water Quality Analyzer. The lake sediments were air dried and then ball milled to pass a minus 80-mesh sieve. Lake sediments were analyzed for U by delayed neutron activation and for Mo, Cu, Zn, Pb, Fe, Mn, Ni and Co by atomic absorption techniques. The organic content of the sediments was determined by loss on ignition at 450 °C. Lake waters were acidified with nitric acid on the day of collection. The U content of the water s was determined by fluorometry; the Cu, Zn, Pb, Fe, Mn , Ni and Co contents of the waters were determined by solvent extraction - atomic absorption techniques. A close relationship was found between bodies of granitic, syenitic and pegmatitic bedrock and elevated U levels in the lake sediments. The Hurd Lake and White Lake granitic intrusive were encompassed by an annulus of higher U activity. Field inspection revealed that the U concentrations occur within a zone which may represent a contact metamorphic aureole. Within these complexes, anomalous concentrations of U appear to be associated with Mo. Information derived from the lake-water data reinforces the geochemical distributions outlined by the lake-sediment survey . This survey was carried out in order to develop optimum sampling and analytical procedures for geochemical reconnaissance of the Grenville Province that may be carried out under the auspices of the Uranium Reconnaissance Program.

Jan 1, 1977

By Rebecca Mae Summer

Large scale surface mining has a major impact on land use. Without reclamation, abandoned mining sites are usually less productive than before mining. With increasing and completetive land use demands in the United States, it becomes increasingly evident that multiple land use should be considered for all areas that will be mined, with special emphasis on coal, sand, gravel, and stone. The mining of these commodities affects the largest land areas and the latter two are commonly mined near population centers where high land-use pressures justify serious consideration of multiple use. Typically, sequential use will mean restoration of the mined land or at least transformation of the land into a useable state. Determination of land reclamation capability is a viable approach to planning reclamation of surface mined land. The natural resource base--geology, soil, and water--controls the type and intensity of land-use practices which can be sustained following mining. Evaluating physical limitations can eliminate consideration of uses which would severely impair the environment or which are impractical. This approach provides for an environmentally and economically sound land use at very little cost. In addition, it can save or make money for the mining company and landowner. Sand and gravel is an especially significant resource because it is mined throughout the entire country and commonly extracted near cities. Increasing urban growth and industrial activity require increased supplies of sand and gravel. This translates into expanded surface mining and an increase of disrupted land. Oftentimes this land is within an urban area and has potential for real estate or water-based activities. Therefore, if reclamation is planned and carried out concurrently with mining, it is definitely feasible and

Jan 1, 1977

By Michael Rieber

The increase in f.o.b. mine prices of coal from $5/ton to over $18/ton in five years [1] has increased the significance of transportation costs. Coals produced in the vicinity of the consumer bear a much lower transport cost than those produced in the west. This differential may be used for flue gas desulfurization, other cleaning, or further processing of local coals. To the extent that western coals are cheaper to produce and have a lower sulfur content, they offset the locational disadvantage. To the extent that they have a lower heating value, the disadvantage is exercabated. Given the other conditions, an accurate analysis of transport costs will help suggest the location of coal mining and the moue of transport both transport costs and tariffs have risen. Together they have increased delivered coal prices, altered the balance between the use of coal and other fuels, helped to alter the location of mining activity, and put pressure on consumers to examine the cost effectiveness of alternative transport modes. Transportation options for long distance coal movements include rail, barge, pipeline, and EHV transmission lines. A summary of system parameters is shown in Table 2.1. Barge transport, pneumatic and slurry pipelines are discussed elsewhere in this report. Together with EHV, they have been the subject of previous studies [2,3,4]. Slurry pipelines have been shown to be especially useful where rails are not available [2] but the technical problems of dewatering, handling, and utilization of lines [5] remain unresolved. They are discussed in Section 3. Barge transportation depends on the location of the mine and consumer with respect to the waterway system. One drawback of barge shipment is interruptions due to winter, and low or high water conditions. Mine mouth power generation followed by EHV transmission of over 500 miles has been shown to be the most expensive means of delivering an equivalent amount of energy to consumers [2].

Jan 1, 1977

By S. C. Carniglia

Bayer-process alumina hydrate becomes in turn the source of a host of special products in addition to the calcines that feed aluminum reduction cells. Though relatively smaller in tonnage, specialty aluminas serve important industrial markets in an exciting and growing variety. Production methods and applications are discussed for: (1) trihydrate as flame retardant in organic materials; (2) high-surface-area transition aluminas as desiccants and scavengers, catalysts and substrates; (3) calcines for industrial ceramics, refractories, and abrasives; and (4) tabular alumina for refractories, bed supports and other uses.

Jan 1, 1977

By William F. Keyes

Greensand, which is widely distributed in the Eastern United States, was produced in 1975 only by Inversand Co., a subsidiary of Hungerford & Terry, Inc., near Clayton, N.J. Production and sales information are not available for publication. Raw greensand produced by the company was sold for agricultural use as a soil conditioner. Processed greensand was used by manufacturers as filter media in equipment for the removal of manganese, iron and other elements from water. The University of Delaware received a grant of $17,051 from the Bureau of Mines early in 1976 to continue its studies of the effectiveness of greensand in removing metallic contaminants from waste waters.

Jan 1, 1977

By Christopher Haycocks, Lawrence P. Johnson, George M. Neall, James M. Townsend

INTRODUCTION Conventional roof support methods such as mechanical and resin bolting provide adequate support for a wide variety of coal mine roof conditions. However, roof falls remain the single largest cause of death and injury in underground mines and seriously hamper production in many operations, demonstrating that these methods of roof support are not universally effective. One of the most recent and successful advances in coal mine roof control has been the introduction of the roof truss. Although past work on roof trusses (Gambrel1 and Haynes, 1970; Sheory, et al, 1973) shows little quantification of this support technique, numerous field examples have been cited where the truss effectively supported roof which could not be controlled by either mechanical or resin bolts (Kegel, 1969). The truss combines the advantages of both inclined roof bolts and post-stressing the roof. However, the full benefits of roof trusses will only be realized when design criteria to optimize support capacity are determined. The number of trusses required for a given roof condition can then be minimized, reducing installation time and making them economically more feasible. The purpose of this research is to develop roof truss design criteria based initially on laboratory studies of gravity-loaded multi-layered photoelastic mine models. Laboratory test results will then be modified where necessary following future field testing. The ensuing relationships should provide the field engineer with a reliable means of calculating optimum truss configuration, capacity, and spacing for a set of known roof conditions.

Jan 1, 1977

Due to collapsing copper prices during 1974/75, a rapid changeover was made at the C.S.A. mine from mechanised cut and fill stoping with incline access to the more economic long hole open stoping method. In 1974/75, 20 per cent of total production came from open stopes. For the 1976/77 year-to- date, more than 80 per cent of total production has been won from open stopes. As a result, mining performance has improved considerably. Stops, drilling performance has increased by more than 50 per cent since the changeover from extension rod, 50 mm diameter cut and fill uphole drilling to 115 mm diameter in-the-hole hammer drilling of holes up to 65 m long. Stops blasting performance has improved from 750 tonnes to 950 tonnes blasted per manshift. Open stope primary blasting per- formance is much higher, but reduces to 950 tonnes per manshift when secondary blasting and firing of hung drawpoints are taken into consideration. Ground control, the most expensive and least productive aspect of cut and fill mining, is almost entirely eliminated in long hole open stoping.

Jan 1, 1977

By P. Fossi

This report describes a pilot-scale study of a hydrometallurgical process to treat high-grade nickel matte or a nickel-cobalt sulphide precipitate to produce high-purity electrolytic nickel. The first step of the process is the oxidative leaching of the nickel-bearing material by nitric acid; the nitrous gases generated during leaching are reconverted to nitric acid. The crude nickel sulphate nitrate solution is purified and is then subjected to a denitrification step. Nitrate separation is effected either by the crystallization of nickel sulphate or by precipitation of basic nickel carbonate. The electrolyte is prepared from the nitrate-free material and nickel is then recovered by electrolysis of the sulphate solution using insoluble anodes. Some technical and economic problems encountered with this processing route are discussed and the method is compared to the "all-chloride" process developed by Société Le Nickel.

Jan 1, 1977

By Michel Dagbert

In the exploitation of porphyry-type deposits, the quality of the ore is mostly defined according to its grade. Besides the simplest distinction, ore-waste, several grade categories may exist and they correspond to the different ways in which the ore is further processed. At the time of mining the selection of the different categories is done from extensive information available from blast holes. But planning has to be done before this information is available and it is necessary for the geologist to forecast, from exploration and development data alone, the possible outcome of the selection done later on a block, a level, or the whole deposit and ultimately predict the ore reserves and value of the deposit. A good statement of this problem has been presented at the 1976 AIME annual meeting by Williamson and Hueller (1976). They have shown that, if the cut-off values are directly applied to the estimated grade of blocks, a gross overestimation of the recovered tonnage of ore (14%) will occur. This problem, now termed "the vanishing tons problem" (DaVid, 1977) seems to be common in many open-pit operations and it has been explained several times (DaVid, 1972; Huijbregts, 1975). In order to solve it l.Jilliamson and Mueller proposed a solution based on compiling masses and masses of blast hole data available from mined-out portions of the deposit. They derived empirical correction factors which provide for every block, given its estimated grade, the expected tonnage and average -grade of each category of material within that block. The purpose of our work is to repeat the same exercise but ignoring the blast holes data i.e. we want to derive the correction factors from the only DOH data. Doing this, we are more in the real conditions where the valuation of the mine and are reserve analysis has to be made before production actually starts. Two possible ways to achieve this goal will be investigated and the emphasis will be on recently

Jan 1, 1977

By Daryl E. Radcliffe

This report describes an instrument system developed by the Bureau of Mines to continuously monitor and record changes in roof displacement during underground mining activity. The instrument consists of a single-wire extensometer coupled to a mechanical-drive chart recorder mounted in an aluminum frame installed in the roof. The unit is small and simple to install and meets safety requirements for use in underground coal mines.

Jan 1, 1977

By David E. Siskind

Increased mineral consumption and environmental concern have caused much interest in potential damage and annoyance from ground vibration and airblast produced by production blasting in surface mines and quarries. Ground vibrations are traditionally blamed for "shaking the house to its foundations," but often the airblast is responsible, particularly when the distances from mine to structure are large. Simultaneous measurements of ground vibrations, structure vibrations, and indoor and outdoor noise from blasting are being used by the Bureau of Mines to determine the relative importance of the ground and airborne blast energy in shaking the structure and making windows, dishes, etc., rattle.

Jan 1, 1977

Until recently, the Australian mining industry received unquestioning encouragement from both State and Federal Governments. Now governments adopt a more questioning outlook about, for example, the proportion of local mine income accruing abroad, about the contrib- ution of the industry to public revenue, and about the industry's impact on the environment. This paper reports on attitudes at a recent industry-government-academic conference on planning and problems for the minerals sector in the next decade and beyond. It also examines a government policy review in Canada, which has undertaken some change in direction of mineral policies in the last few years.

Jan 1, 1977

By Svenson D

Most exploratory drilling in the N.S.W. coal fields has been conducted using convent- ional diamond drill rigs of modern design, us- ually truck or trailer mounted. Conventional diamond drill rigs have also been used exten- sively by the Queensland Department of Mines for coal exploration. However almost all of the exploratory drilling of surface mine coal prospects throughout Queensland has been conducted using rotary rigs typified by the Mayhew 1000 truck mounted unit. The rotary rig has proved capable of both rapid non-core drilling and core drilling with high core recoveries when modern core barrels have been used by experienced drillers. For deep or continuous core drilling, wire-line equipment is now in general use. Both wire-line and conventional coring is effected using stationary split inner tube barrels, for minimum core disturbance, maximum core recovery, ease and accuracy of logging and sub-sectional sampling. Diamond core bits are generally required in N.S.W., with water circu- lation. In Queensland, the generally softer coal measures strata can be successfully cored using tungsten carbide bits and air circulation is the preferred method where possible.

Jan 1, 1977

By Whang K, Choi H

A study of flocculation of ultra-fine coal particles by ultrasonic waves was investigated on a laboratory scale.The coal suspension was dilute, with low ionic strength, and at pH 6·2.When a stationary sonic wave is set up in a solution containing suspended coal particles, it is believed that high and low pressure regions are alternately established at the half wave-length of the sonic wave and this resultsin the migration of coal particles towards the low pressure regions.As expected the flocculation is more effective as to frequency and the power of the ultrasonic waves is increased.The shape and size of the test equipment are also important variables.

Jan 1, 1977

By Fredrick M. Ryan

Present indications are that in about 2-3 years phosphor tags will be required in commercial explosives. A permissible 254 run ultraviolet lamp assembly has been developed to permit mine inspectors to detect such phosphor tags and therefore to establish if non-permissible explosives were used. This new lamp is powered by a Miner's cap battery without interference with the normal lighting requirements of the cap lamp battery. It is compact, light, and rugged with very high ultraviolet output.

Jan 1, 1977

By R. K. Young

This paper describes a computer-based Data Acquisition System which provides efficient data logging and retrieval, control of on-line gas chromatographs, and instantaneous calculation of material and energy balances.

Jan 1, 1977