Search Documents

By Granville S. Borden

MANY complaints have been filed by mine prospectors, explorers and producers about inequities in mining taxation. They have insisted upon improvement, and in the past 35 years there has been some progress. Many of the best taxation provisions made to date are those contained in the Revenue Act of 1951. Mining economics presents special problems, a fact even recognized by many textbooks. Certain provisions have been made to take care of mining taxation rights, but these have been made by Congressional act and do not represent basic, constitutional, guarantees. Despite special provision, in the form of depletion allowances, there remain injustices. The industry faces the problem of gaining adequate income tax allowances for exploration and development expenditures, operating losses, and bonus and subsidy payments. Problems in mine taxation arose soon after the adoption of the 16th Amendment. This amendment gave Congress the power to impose income taxes. Supreme Court decisions against a number of mining companies held that Congress, under its power to tax income, could tax net operating revenue before depletion allowance was deducted. The court also ruled that the right to deduct depletion is a matter of Congressional permission. There is no statute provision permitting mining stockholders to recover their investment out of dividends while the mine is being operated. The Supreme Court did not recognize that part of mining proceeds are actually amortization of the cost of mineral rights. Both these omissions stem from failure to recognize that by its very nature mining consumes its mineral rights and therefore that a part of gross proceeds are not income but recovery of capital. Suppose a Congress unfriendly to mining interests repeals the provisions that allow deductions for depletion. Under such a situation assume that a corporation buys a mineral deposit for $300,000. They mine the deposit and earn an operating profit of $500,000. At the current rates they would pay a Federal Income tax of in excess of $250,000. This venture results in a loss of $50,000 as shown in the table below. For the example given the absence of depletion provisions in income tax law would turn ore into waste rock, because the word "ore" connotes commercially mineable rock. [ ] In retrospect the conclusion is clear: If the Supreme Court had recognized that a part of mining proceeds represent in reality sales proceeds of mineral rights, then profits derived from such sales would have been taxed at the favorable long-term capital rates, instead of being taxed at the high normal, surtax and excess profits rates. It is a question whether percentage depletion allowances offset this tax situation. History The history of depletion allowances has been one of general improvement. The original act did not include depletion, but an allowance at the rate of 5 pct of gross proceeds was provided in 1913. The Acts of 1916 and 1917 allowed depletion upon cost of property, and in 1918 the law was further changed to permit depletion upon cost, or market value as of date of discovery. In 1932 metal, coal and sulphur properties were permitted to elect depletion in percentages of gross income, limited to 50 pct of net income, in lieu of cost depletion. Shortly thereafter the rule was changed and percentage depletion is now allowable in any case where it is higher than cost depletion. Since 1942 percentage depletion allowances have been extended to cover many nonmetals, and in 1951 the rate for coal mines was increased from 5 to 10 pct of gross income. It is interesting to note that these allowances have been retained, and even

Jan 1, 1952

By Robert B. Parsons

"Exploration and development of mineral resources in developing countries by Canadian-based multinational mining companies is becoming increasingly common. One problem being encountered is that the objectives of the governments of developing countries can differ from those of developed countries. These objectives are not always consistent with maximizing returns from the projects, which can create conflicts between the mining company's responsibility to its shareholders and the desire to be a good corporate citizen. This article discusses how a mining tax regime can be designed to make the social goals of a government consistent with the economic goals of the company.IntroductionAt the recent International Seminar on Mining Taxation organized by CIM and the United Nations there was considerable discussion about the role of international mining companies operating in developing countries. Not surprisingly, given the diversity of backgrounds of individuals attending the Seminar, there were different opinions about what this role should be.Government PositionRepresentatives of governments pointed out the strong desires of their countries for technology, high-level technical training of their workforce, increased employment, and development of social infrastructure. They pointed out that, to a large extent, these objectives could be more efficiently met by mining companies operating in the country than by the governments themselves. For example, a multinational mining company (""MMC"") would have extensive knowledge of the various technologies available, and would have performed a detailed evaluation of the mineral resources before choosing the most cost-efficient technology for that project. They would, therefore be in an ideal position to assist the country in importing and developing such technology. Similarly, the company could provide opportunities for hands-on training, both at the technical and managerial levels, which would otherwise be unavailable to the government."

Jan 1, 1991

The Mascot-Jefferson City zinc mining district in eastern Tennessee has been a major zinc producer for over 60 years. The district lies within the Tennessee division of the Appalachian Valley and is underlain by folded and faulted Paleozoic rocks. The local formations are composed of limestones and dolomites with occasional shales, and sand- stones, and thin and scattered chert nodules. The regional structure of the district is unique in that it is complicated by irregular, distorted, and broken anticlines, synclines, domes, and major and minor post-ore folding and faulting.

Jan 5, 1976

By C. Legote

"This paper investigates the conditions leading to the indefinite termination of production in four critical primary panels at an underground coal mining operation, the observed shortcomings in the mining approach, and the proposed strategy to mine through the affected panels. Initial assessment of the abandoned panel conditions indicated time-dependent strata failure,(i.e. bolted roof failure overrunning intersections), which occurred from mere minutes to up to four weeks post-production, with and without prior warning of failure. This prompted the constant re-supporting of back areas, which raised safety and productivity concerns. Investigation of the initial mining conditions revealed that the failures were due to a critical combination of factors, the chief of which was isolated horizontal stress. Other factors that were initially overlooked by the mine (i.e. influence of hydraulic stress, misinterpretation of borehole data), resulted in the conditions being described as abnormal. Remedial actions were determined, and in so doing, a new strategic approach was formulated to thoroughly address all failure concerns. The four panels were explicitly planned to serve as the main intake and return airways for the recently commissioned secondary ventilation shaft, as well as providing access to millions of tons in proven coal reserves. It is thus imperative to mine the panels. A feasibility study showed that the proposed strategy set for implementation would be financially viable. Paper written as project work carried out in partial fulfilment for BEng(Mining Engineering) degree"

Jan 1, 2015

By John Smyth

Mining through in panel entries and the full face recovery method has been successfully practiced at U.S. Stwl, Mine 50. Suppat of the cut-through entries and recovery room is critical. Traditionally, concrete crib or fly ash cement backfill has been utilized. However, these traditional methods are not feasible at Mine 50 due to the difficulties of the plow face mining through these types of support. Recent development of new cable support systems provides an option for cut-through entry support. Mine 50 and Jennmar Corporation personnel have worked together to design and apply the cable systems in the cut-through entries and full face recovery room to eliminate standing support. To date, a number of full face recovery rooms and cut-through inpanel entries have been successfully mined. The results indicate that the cable systems combined with high capacity shields, have provided sufficient capacity to support the roof. Utilizing the Jennmar Finite Element Analysis (JFEA) computer program (Stankus and Guo, 1996), an analysis of the stress and roof deflection changes as the longwall gradually cut through was conducted. From the finite element analysis data, a supplemental support plan was designed. The history and experiences at Mine 50 are presented. Based on the case experiences and modifications made to the finite element analysis, an improved design criteria for future use has been formulated.

Jan 1, 1998

By Mark A. Williams

"This paper was originally intended to be a presentation of a case study of two surface bituminouscoal mines in the southern Appalachian coal fields located within five miles of each other. These mines were nearly identical in every aspect from geologic setting to equipment application. Althoughrepresentatives from each mine desired to participate in the preparation of this paper through support in providing background information and in review and editing, it was later concluded that, due to the environmental sensitivity associated with each mine, it may not have been a good decision to present this case study in a public forum."

Jan 1, 1994

By P. Kolodziejczyk

Mining seismicity can be harmful both under and on the surface. ? Tremors are not totally damaging, but destructive to buildings and infrastructure, especially in highly urbanized regions, such as Upper Silesia in Poland ? Destroy the social appreciation, trust and support for mining industry ? To prevent or reduce these effects, engineers and scientists develop methods allowing prediction of ground shaking intensity near buildings and various losses that can result from it Evaluation and prediction of mining tremor?s damaging influence on buildings is usually solved with two steps: ? Estimation of local ground shaking intensity (based on known attenuation relation) and classification into one of several predefined intensity intervals ? Apply supposed relation between the shaking intensity interval and qualitatively defined damaging effects to express predicted effects This makes a mixed quantitative/qualitative procedure, difficult to analyze or optimize

Aug 1, 2013

A consideration of mining ventures and the changes of an environmental nature that occur. The paper is introduced with a general statement claiming recognition that mining ventures are important to human well-being but that these need to be justified against the environmental changes that they bring about. The various factors that need to be considered are cited followed by an historical review of mining activities. The various environmental issues are discussed under three headings; socio-economic, physical and biological, prior to reviewing the world's demand for minerals including fossil fuels. In conclusion guidelines for appraising mining ventures relative to environmental changes that may occur, are given.

Jan 1, 1981

By L. Jurca, C. Gligor

After 1990, a great process of re-organisation and economic reform has occurred in the Romanian mining sector and especially in the pitcoal mining in the Jiu Valley. This process has included both legislation and the main aspects for getting an economic efficiency in the environment issues and for dealing the problems with social impact. Accordingly, starting with the year 1993 a new mining method has been introduced to turn efficient the pitcoal mining, and we speak about mining with caved in bed. This method has two variants: - with transverse strips and caved in bed; - with long face and caved in bed. Each of the above-mentioned variants has in turn several subdivisions, depending on how the longwall is prepared and on other characteristics. By using this method, the output has increased compared to other mining methods. The main safety aspects concerning caved in mining refer to: - great emissions of methane; - technical aspects (a mining method system, supports, discharging process); - pressure driving (analysed for the case of mining with long face, with transverse strips as well for the case of transverse strips when mining a subsequent sublevel).

Jan 1, 2003

This paper highlights the agricultural sector's primary concerns with mining in New Zealand: the information gap, land rehabilitation and compensation. It suggests how these issues can be resolved between the competing land uses in the interests of New Zealand.

Jan 1, 1981

By Peter Haller

Introduction The impact of the Comprehensive Environmental Response, Compensation, and Liability Act, or Superfund, as well as the Resource Conservation and Recovery Act (RCRA) and their state counterparts underscore the intention of the nation's lawmakers to reduce the risk from hazardous substance to American society. The promises and requirements embodied in these laws, together with their prospects for liability, will continue to have a very substantial impact on decision making in the mining industry. These laws present the prospects for staggering liabilities, often of an unquantifiable nature in terms of time and amount. It is therefore necessary to keep them in clear focus. This is particularly true in light of President Reagan's signing into law the Superfund amendments on Oct. 17, 1986, and in light of the Environmental Protection Agency's (EPA) major policy pronouncement of July 3, 1986, regarding solid wastes from extraction of ores and minerals. This article examines the general trends as well as the specific provisions of these laws in an effort to assess the prospects of liability for the mining industry of releases of hazardous substances into the environment. Hazardous substances vs. hazardous wastes The distinction between the terms "hazardous substances" and "hazardous wastes" is important to appreciate for the purposes of assessing the potential for liability for a mining operation. Hazardous substance is a term that appears in and is defined in the Superfund Act. In Superfund, it is defined by reference to other substances that have been declared to be hazardous under other federal environmental statutes, such as RCRA, the Clean Air Act, and the Clean Water Act. Hazardous waste is a term that is less all-encompassing than hazardous substance, as that term is defined by RCRA. Hazardous substances do not need to be wastes to be considered hazardous for the purpose of Superfund liability. A "release" of a hazardous substance into the environment can bring about potential liability under Superfund. Many mining wastes, even though they are not considered hazardous wastes by EPA under RCRA, have been determined by that agency to be capable of bringing about liability under Superfund if they contain chemical substances, such as the heavy metals copper, lead, mercury, zinc, silver, and others. Therefore, it is not sufficient for the mining industry to be able to answer whether one has hazardous waste at a mining site. That question only goes partway in addressing the potential for liability. The next question is, do one's solid or liquid mining wastes contain hazardous substances that could bring about liability under Superfund? Superfund 1980 law: A review Some provisions of Superfund as it existed before its recent amendments must be considered. The law provides that the owners and operators of mining sites, together with those who transport hazardous substances to such sites, can be held jointly and severally liable for the cost of cleaning up the site. The concept of joint and several liability means that one party, as among many, can be held totally responsible for the costs of cleanup. This is particularly true where the harm done by many parties to the envi-

Jan 2, 1987

By Lawrence Lien

The reduced need for traditionally trained and educated personnel in the mining industry is systemic to the changing mining industry. Universities and other training institutions are meeting the traditional skill needs required by the industry, but are the skill needs going to be the same in the near future? The answer may be no. Mining is changing because of increased liabilities and costs of environmental and safety is-sues; lower grades of minerals in traditional mining activities and the advent of new bio-chemical processes and robotic equipment. More productive and economic alternatives, and larger, more sophisticated and automatic equipment, are also changing the industry. Engineering is more specific, accurate, precise and expensive. Measurement is more thorough and timely of progress, production, costs and productivity. And, the industry will likely be engaging in more undersea mining, possibly space-based processing, less human interaction and more remote control of events than was previously thought possible.

Jan 1, 2011

By J Fraser, M Scoble

Within the past decade, incidents of mining–community conflicts have grown dramatically and represent one aspect of a phenomenon known as social risk. Research published in 2014 indicates that a lack of social acceptance is now a leading and costly cause of delays for mining projects.The rise of social risk, complemented by the need to earn the trust of an increasing number of stakeholders so that mining projects can be developed effectively, is problematic for the industry. Conflicts are occurring in situations where companies are fully compliant with regulatory and legal requirements, despite initiatives by mining companies to earn social acceptance and despite the proliferation of tools to support corporate social responsibility. Intensifying the impact of social risk is the fact that it has increased during a time in the global mining sector when companies have had to grapple with declining commodity prices, increasing capital costs and debt levels and the challenges of mining lower-grade deposits.This paper will explore a hypothesis that in today’s interconnected society, social risk in the mining sector constitutes a legitimate business risk that must be managed strategically. The reality facing mining companies is that information, once considered confidential, now travels quickly on social networks and via a growing number of groups and individuals that have earned a legitimate right to be classified as stakeholders in projects that affect their communities. To be successful, it is suggested that companies will benefit from increasing internal collaboration and providing training to equip teams to mitigate social risk to mining projects and protect reputation capital. The paper is based upon PhD research being undertaken to assess the points of intersection between social risk and social responsibility during the construction stage of greenfield mining projects.CITATION:Fraser, J and Scoble, M, 2015. Mining–community conflicts – can the future mining sector transform social responsibility?, in Proceedings Third International Future Mining Conference, pp 159–168 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By Bruno Gemmi

The objective of the ? 200 million ($280 million) project Parma Railways Station-Urban Transformation was the reconnection of the North and South parts of the town by constructing an 80 m (250 ft) wide sunken artery passing under the four double railway tracks of the station without any impact on train traffic. The site of the project, adjacent to the Parma River, presented water seepage problems at any excavation depth. The use of conventional large diameter bored pile machinery was not allowed by the Railway Authority because equipment dimension and construction phases do not comply with train traffic safety regulations. Foundations for the bypass were thus constructed by minipiles nested into jet-grouted soil using machinery operating within the existing head room and at a safe distance from the tracks. Jet-grouting treatment reached depths of 25 to 28 m (80 to 90 ft) from tracks? grade and embedded minipile-heads were terminated at 2 to 3 m (6.6 to 10 ft) below grade. Load tests on minipiles were pushed to failure. Failure occurred at a 240 t (265 t) load without breakage of the bond between the jet grouted soil and the minipiles. A 0.93 MPa (135 psi) shear resistance ??? between minipile steel casing and the jet grouted soil was measured prior to the failure of the steel casings. Overall measured foundation settlements were well within expected values and were considered insignificant.

Jan 1, 2011

By Bruno Gemmi

A new warehouse built with prefabricated components over an area underlined by soft marine soil deposits started showing differential settlements well before its completion. Its 103 spread footings carrying up to 4,000kN (450t) axial loads had been cast on jet-grouted columns extending and penetrating a layer of sand at a depth of 10m (33ft). Investigations performed to assess the wholeness and consistency of the jet-grouted columns revealed a state of loose jet-grouted masses and uncontrolled, off target migrations of the jet-grouting. Most of the jet-grouting itself was settling. The following remedial solutions were suggested: 1. Construction of new and better controlled jet-grouted columns. 2. Cement-based soil grouting. 3. Expanding resin injections. 4. Minipiles drilled-through the existing footings and reaching into a denser layer of sand existing at 23m below grade. Remedial solution 1. was immediately discarded due to cost and the possibility of a repeating failure in this non-granular and highly compressible soil. Tests of remedial solutions 2. and 3. were carried out. The outcome of the grouting was monitored by Electro Resistivity Tomography (ERT) (Bares et al., 2003), an innovative 3D electro tomography procedure showing where grout had been actually placed and its migrations off target. A successful 4,000kN (450t) load tests confirmed the validity of the solution. Finally, upon the completion of a successful load test, solution 4. was chosen. It supplied the highest degree of reliability thanks to the ease of controlling the final and actual location of the minipiles and to the higher safety factor provided. All remedial work to install the minipiles was eventually performed inside the building. Additional load tests and settlement measurements confirmed the adequacy and success of the chosen solution.

Jan 1, 2011

By W L. Jennings

This paper summarises work undertaken to date as part of an investigation into the mineral resources of the proposedNorth West South Island National Park. The area covered by the proposed national park is underlain by many rock types that have undergone a long and complex history of evolution which has endowed it with some of the best potential for a wide range of different minerals in New Zealand. Many of these minerals occur only in this area or in Fiordland National Park.   The first gold-rush in the area occurred in 1856 and followed the discovery of payable gold at Lightbands Gully, south of Collingwood. The miners first focused on the alluvial deposits but soon shifted attention to lode potential. The total historical gold production for the area may be over 400 000 oz (NZ$250 - NZ$295.6 M at 1993 prices).   In addition to gold, a wide range of other minerals have been reported from the area including molybdenum, copper, nickel, zinc, silver, bismuth, stibnite, lead and antimony. The Onekaka iron-ore deposits have produced small tonnages of ochre and iron-ore at various times. Tungsten, platinoids and other metals have been. given only minor attention. The diverse geology of the Northwest Nelson has resulted in the occurrence of many industrial minerals which have been exploited in generally small-scale operations. Aggregate, chrysotile asbestos, clay, dolomite, marble, limestone, dimension stone, rip-rap, talc-magnesite and wollastonite have all been produced.

Jan 1, 1993

By William R. Yernberg

The combined 76th Annual Minnesota Section of SME meeting and 64th Annual University of Minnesota Mining Symposium were held April 8and 9, 2003, in Duluth, MN. This year’s theme was “Stakeholders, Partners in Change.” The meeting included four keynote speakers, technical presentations and a tradeshow. Engineers, executives, mining managers and suppliers from throughout the United States and eastern Canada attended the meeting. Reflecting the theme of the meeting, all agreed that the mine owners, the government, the community and the employees are all “stakeholders.” They must be “partners in change” for the iron ore mining industry to survive in the region. Compared with past meetings, where improved technology was the primary focus, this year the focus was on the dramatic restructuring of the entire industry. As noted by several of the speakers, “This time, the change is not in technology.”

Jan 1, 2003

By William R. Yernberg

The combined 78th Annual Minnesota Section of SME Meeting and 66th Annual University of Minnesota Mining Symposium was held April 19 and 20, 2005, in Duluth, MN. More than 300 mining professionals, including engineers, executives, mining managers and suppliers, from throughout the United States and eastern Canada attended the meeting. This year’s theme was “Global Demand: A Window of Opportunity.” The meeting included a keynote address, technical presentations and a trade show. The atmosphere at this year’s meeting was upbeat. The iron ore mining industry in Minnesota is experiencing one of its biggest turnarounds in history. Because of greater demand, iron ore prices increased 20 percent during 2004 and 71.5 percent so far in 2005.

Jan 1, 2005

By R. M. Hays

Jan 1, 1980

By William R. Yernberg

The combined 80th Annual Minnesota Section of SME Meeting and 68th Annual University of Minnesota Mining Symposium was held April 17 and 18, 2007, in Duluth, MN. About 350 mining industry professionals attended the conference, including engineers, executives, mining managers and suppliers from the United States, Canada, Australia, Finland and Brazil. This year’s theme was “Consolidation – Growth – Technology.” The 80th Annual Minnesota Section of SME meeting included concurrent technical papers sessions, a keynote session that featured two distinguished speakers and a general managers session in which taconite mine operators provided updates on their operations. The Minnesota Section meeting also offered an SME short course titled “Control the Feed, Control the Mill.” More than 50 individuals at-tended the short course.

Jan 1, 2007