Search Documents

By P. T. Kane, O&apos

Capital and energy are the dominant cost factors in nickel production from laterites. Since the 1973 energy crisis, pyrometallurgical developments have been oriented towards lower cost sources of energy and higher grade ores and hydrometallurgy towards higher recoveries and greater flexibility in types of ores treated. Energy recuperation offers some potential, but at a price. 'The lower energy acid leaching process is indicated to have the greatest potential, particularly with its inherently high cobalt recovery.

Jan 1, 1979

By James B. Lincoln

The Schaffer linear kimberlite complex and Aultman kimberlite diatremes comprise a major part of the State Line kimberlite district of Colorado and Wyoming, which encompasses approximately 200 sq mi (500 km2). The district is located along the eastern flank of the northern Front Range and is underlain prin- cipally by Precambrian granites (approx. 1.4 b.y.) which have been intruded into an older (approx. 1.75 b.y.) metamorphic complex. The kimberlite occurrences are Devonian in age and are related to older Precambrian linear structures. The Schaffer kimberlite complex is a dike or fissure system with enlargements or blows developed at the intersections of cross faults; the two Aultman occurrences are diatremes. Kimberlite within the Schaffer complex is predominately grey to green phlogopite-calcite kimberlite breccia and tuffisitic breccia. Carbonate is abundant in some phases. Inclusions of host granite are common and locally abundant. Upper mantle peridotite, pyroxenite, and eclogite and lower crustal granulite xenoliths are present at many localities. Four phases of tuffisitic kimberlite breccia occur in the Aultman diatremes. These breccias are characterized by high carbonate and serpentine contents. Xenoliths of upper crustal granite, lower crustal granulite, and upper mantle assemblages are abundant locally. Lower Paleozoic sedimentary rock xenoliths are also abundant in the Aultman diatremes but are absent in kimberlite of the Schaffer complex. From 1979 through September 1982, Cominco American, Inc., conducted geologic mapping, petrographic studies, geophysical surveys, geochemical surveys, and auger drilling in the Schaffer-Aultman project area as part of an extensive evaluation program of kimberlite occurrences. Forty bulk samples (approx. 8,000 metric tons) were excavated from the occurrences and then were processed for diamonds at Cominco American's heavy media separation and diamond recovery test plant at Fort Collins, Colorado. Indicated grades from the Schaffer and Aultman kimberlites range from approximately 0.5-1.0 carat per 100 metric tons and as such, the occurrences do not appear to approach economic viability at this time.

Jan 1, 2013

By Peter Zhang, Daniel Su, Bo Hyun Kim

Shale gas wells drilled in longwall chain pillars are influenced by longwall mining. Longwall mining on each side of the chain pillars can create overburden movements and induce deformations in gas well casings. If the deformations result in a casing breach, intrusive shale gas could leak into the longwall mine with serious safety consequences. This study concerns five shale gas wells in the chain pillars between two adjacent longwall panels in the Pittsburgh coal seam under a cover depth of 670 ft and a mining height of 7 ft. The gas wells were constructed with typical casing design, but a casing cementing alternative with uncemented production casings was practiced. Four production casings were uncemented, and one production casing was unintentionally cemented with good quality cement to a 535-ft depth and low-quality cement stringers from a 444- to 535-ft depth. The longwall faces passed by the shale gas wells as each adjacent longwall panel retreated. Production casings were surveyed by a multi-finger caliper after each panel was mined. No deformation was detected in the four uncemented production casings, but small deformations were detected in the partially cemented production casing. The maximum measured deformation in the cemented production casing was 0.05 in. after first panel mining and 0.06 in. after second panel mining. The casing deformations were also predicted by the FLAC3D model set up on site-specific overburden geology. The predicted deformations were in good agreement with the measurements in terms of deformation locations and magnitudes. All five shale gas wells resumed normal production after being temporarily plugged during the period of mine-by. This study provides a successful demonstration of the effectiveness of a casing cementing alternative for decoupling production and intermediate casing, and thus minimizing the influence of longwall mining in the shale gas wells drilled through longwall chain pillars.

Jul 1, 2023

By Henry N. McCarl, Gary Waters, William A. Vogely

INTRODUCTION In the past three decades, world trade has grown from less than $100 billion per year in the years following World War 11 to slightly more than $300 billion in 1970 and over $2,000 billion in the early 1980s. Adjusted for inflation, the real growth of world trade in 1972 dollars increased from less than $175 billion per year in the early 1950s to slightly more than $342 billion in 1970 and almost $700 billion per year by the early 1980s. Thus trade as a whole has increased a little more than twofold in real terms in the past decade." Mineral commodities constituted approximately 20% of the value of total world trade in 1970, and significantly more than that proportion in terms of physical volume. By 1980, de- spite rapidly rising petroleum prices, mineral commodities accounted for roughly 18% of the total value of world trade. Crude oil alone ac- counted for about 16%, making it the single most important commodity in international trade. The worldwide recession of 198 1- 1983 brought a dramatic decline in both volume and price of crude oil, shrinking the impact of mineral commodities to roughly 10% of the value of total exports, worldwide, in 1982- 1983. The decline of mineral commodities as a pro- portion of the value of world trade in the decade 1970- 1980 is due largely to the increasing importance of manufactured goods and consumer products such as automobiles and electronic items. During this period, mineral commodity trade expanded roughly sixfold in terms of current dollars to an estimated $350 to 360 billion in 1980. This was equivalent to doubling the real value of mineral commodities in international trade in the 1970- 1980 period in constant dollars. The U.S. Bureau of Mines has expanded the traditional definition of mineral commodities to include semifinished products such as iron and steel (in addition to iron ore), refined metals such as copper, lead, zinc, aluminum, and tin, concentrates, scrap, and petroleum products. Since large quantities of essentially mineral derivatives travel in this form, it is reasonable to use these expanded definitions in stating the role of minerals in world trade. Thus minerals in world trade comprise 30 to 33% of total export trade in all commodities during the period 1976- 1980 (see Table 1.3.1). In addition, the U.S. Bureau of Mines estimates the value of all mineral commodities consumed in the world (at the national level) and compares this value to total worldwide commodity consumption. By this system, mineral commodities range from 30 to 40% of all commodities consumed each year in all countries during the period 1976- 1980 (see Table 1.3.2). The growth in export trade in mineral commodities by commodity group is shown for the period 1976-1980 in Table 1.3.3. These data parallel the swings in worldwide economic activity during the same time period. By any of the above measures, minerals, especially the fossil fuels, constitute a significant proportion of both total economic activity and

Jan 1, 1985

By Allan M. Harvey

Asbestos production in the United States is no match for the vast operations of Canada and the U.S.S.R. The majority of U.S. production is limited to the states of Vermont, California and Arizona, and the type of asbestos is limited to the variety of serpentine known as chrysotile. What little production of other varieties of asbestos such as tremolite and anthophyllite that has occurred over the past 100 years since asbestos became a useful commodity is of practically no significance. However, new developments in the field of environmental and occupational health hazards has startled the mining industry in this country and has already given a few particular companies reason to be concerned about the profitability and probability of their continued operation in the business of mineral processing. At the heart of these developments is the question and controversy over just what constitutes asbestos and what exactly is the definition of a fiber. To the mineralogist or, in fact, to practically anyone engaged in the process of mining and separating minerals there is little or no question about asbestos. It is not a distinct mineral but rather a commercial product serving specific applications for which a number of fibrous mineral types can qualify. To the hygienist pr health authority this definition is too general. They demand something they can detect, measure and control. To suit their purposes and simplify their task of detection, they have labelled the minerals chrysotile, crocidolite, amosite, tremolite, anthoph-yllite and actinolite as asbestos, and any particle of these minerals with an aspect ratio of 3:1 as an asbestos fiber. It does not

Jan 1, 1976

By Sakir Selcuk, Brian Hamilton, Paul Zick

The 1.8 mi (2.9 km) Minneapolis-St. Paul International Airport Light Rail Transit Tunnels and Station project is comprised of the underground segments of the 11.8 mi(18.8 km) Hiawatha Light Rail Transit route in Minneapolis, Minnesota. The 21 ft 2 in(6.5 m) diameter twin tunnels were mined 65 ft beneath one of the busiest airports in the United States using an earth pressure balanced tunnel-boring machine. This paper will provide a project overview, review the major equipment selected, tunnel segment casting, and describe excavation and lining operations for the tunnels and station.

Jan 1, 2003

By V. P. Petrov, V. S. Znamensky

There are a great number of asbestos deposits in the USSR, and some are quite large. The main deposits of chrysotile asbestos are shown in Fig. 1. The Bazhenovo deposit, which is located in the Sverdlovsk region, is the largest and has been mined since 1889. Systematic studies of asbestos deposits were begun from the very be- ginning of Soviet government and are most often connected with the names K.E. Tarasov, P.M. Tatarinov, B.J. Merenkov, N.D. Sobolev, F.V. Syromjatnikov, V.N. Lodochnikov, V.P. Petrov, V.P. Eremeev, L.A. Sokolova, V.R. Artemov, and V.F. Dybkov. Investigations by these people and others helped the USSR be one of the most important producers of asbestos in the world. In this chapter, the main asbestos deposits of the USSR are explained in a general outline from the point of view of their genesis, common features, and differences that must be taken into account for forecasting, exploration, and the mining of asbestos. All chrysotile asbestos deposits of the USSR were formed from magnesium rock as a result of comparatively low grade temperature, hydrothermal alteration, and free crystallization of fibrous chrysotile in open cavities that served as catalysts. Chrysotile, a widely distributed rock-forming mineral, is not in general an important mineral for industry as it is a long fibrous and main vein variety. However, it must serve for geologists as an important prospecting criteria. And, the geologist should search for the mineral not only in places of possible chrysotile generation, but in places where asbestos may be crystallized in its long fibers. The Soviet geologists distinguish chrysotile asbestos deposits in two groups: (1) ultrabasic rocks and (2) sedimentary dolomite terranes, taking into account how the maternal rock was affected by hydrothermal solutions. The largest deposits are related to ultrabasite. In dolomite, the largest deposits are small and their asbestos contains almost no iron, which makes it a better filler for insulating plastics. There are a few types of asbestos deposits within the limits of the ultrabasic group, the largest being a Bazhenovo type to which the deposits of the Urals are attributed. This Bazhenovo asbestos is characterized by the most complete zonality of disposition for various kinds of asbestization. These types of deposits are, for the most part, the only ones presently working in the USSR. The Bazhenovo deposit is connected to the gabbro-peridotite intrusive belt that is about 180 km long and is broken into a number of fault blocks as shown in Fig. 2. Granitoid veins of intruded rocks are found along the deepest faults, and were sources of hydrothermal solutions that affected the maternal rock. The nearest granitoid vein, ultrabasite, is substituted by listwanite that consists of quartz, talc, carbonate, and some other essentially talcous rock. The next zone of hydrothermal alteration is composed of serpentine. The boundry between serpentinite and unaltered ultrabasite is as irregular, diffuse, and rough as the boundaries between all other zones. Nearer the vein of granitic rock, ultrabasite is entirely serpentinized into massif serpentinization that penetrates through cracks and fissures. There is an unaltered ultrabasite space between fissures, and the biggest block is preserved unaltered in the central part of the massif. The Soviet geologists call this ultrabasic sopka. Preservation of the unchanged blocks is of great importance for deposit formation as volume changes are impossible during the process of asbestization and serpentinization. It may be confidently said that asbestization in Bazhenovo type deposits is possible only when alteration of ultrabasite has not completely occurred. Under conditions of massif volume, a very big mass of substance must be carried out of the ultrabasite for the progressive stage of serpentinization. However, in the regressive stage,

Jan 1, 1986

By B. H. Kim, P. Zhang, M. A. Van Dyke, D. Su, H. Dougherty

The National Institute for Occupational Safety and Health (NIOSH) has been evaluating longwall mining-induced strata fractures and their impacts on casing stability of Marcellus shale gas wells located in longwall pillars. To understand the extent of overburden fractures after longwall mining, NIOSH researchers drilled a postmining corehole into the fractured strata above the Pittsburgh coal seam longwall gob. Knowing the extent of the fracture zone height will help gas operators minimize the hazards of drilling into longwall gobs. The core was retrieved from the surface down to the top of the gob void. Various fractures were encountered varying from 35 to 64 degrees, depending on lithologic type and relative closeness to the gob. The longwall panel dimension was 457 m wide and 3657 m long, in which the total fracture zone height was found to be at 141 m and the hydraulic connected fracture zone at 87.7 m above the top of the Pittsburgh seam. In addition to core drilling through the gob, FLAC3D modeling was also used to simulate the formation of fracture zone and the orientations of longwall-induced fractures. This study provides much-needed evidence on the fracture zone of Pittsburgh seam longwall gobs to help gas operators avoid potential hazards associated with drilling through highly fractured zones

Mar 2, 2022

By Evan J. Owen, Virginia T. McLemore

of high specific gravity, resistant minerals that form from mechanical concentration by waves, currents, and winds in marginal-marine environments. These sediments are enriched in critical minerals such as titanium, zirconium, and REE. Cretaceous beach-placer sandstones are found in the Colorado Plateau of northwestern New Mexico. Originally discovered by airborne radiometric surveys for uranium in the 1950s, these beach-placer sandstones are being re-examined with modern methods as potential sources for critical minerals. Selected beach-placer sandstones have been sampled, mapped with ground radiometric surveys, and analyzed with whole-rock and trace element geochemical methods. Mineralogy is being determined with optical methods, XRD, and EMPA. Zircon, rutile, ilmenite, and monazite are the primary heavy minerals of interest found in the studied deposits. Initial results show that the sandstones contain up to 1.4% total REE, 29.4% TiO2, and an estimated 4.9% ZrO2. Chondrite-normalized REE diagrams show distinct light REE and minor heavy REE enrichment, as well as pronounced negative Eu anomalies for each deposit.

Feb 1, 2024

By Justin Cardwell, Alyson Cartwright

"Grade estimation is the cornerstone of longrange mine planning. Pit designs, metal recovery, mining costs, reserves calculations and reporting are all dependent upon a reliable grade model. If the geology is poorly understood or the interpolation methods and parameters have been haphazardly constructed, then massive financial losses will be the inevitable outcome. Therefore, a properly trained geologist must use all of the appropriate tools available including deposit knowledge and advances in modeling technology to construct the most geostatistically and practically sound long-range block model.Certain deposits, such as the sedimenthosted deposits at Tenke-Fungurume, require an interpolation method that best suits the style of mineralization. In 2014, Hexagon Mining developed a tool in MineSight called dynamic unfolding (MSDU) that has the potential to improve upon previous Euclidean-based interpolation methods. MSDU utilizes the nonstationarity of a folded grade trend to more accurately construct variograms and improve interpolation results based upon a modeled three-dimensional surface.Geology overview. The sediment-hosted Tenke-Fungurume mining district is located in the southeastern part of the Democratic Republic of the Congo (Fig. 1). The rocks within the district are primarily dolomites and shales from the lower half of the Roan Supergroup that were mineralized by ascending pregnant copper and cobalt rich brines within a massive sedimentary basin (Cailteux et al., 2005) (Fig. 2). These oxidized brines likely found a fluid channel in the porous RSC unit. The surrounding rock units provided a redox boundary for copper and cobalt precipitation along organic rich beds, forming a massive stratabound deposit that was later broken up by several subsequent tectonic events (Dewaele et al., 2006)."

Jan 1, 2015

By Robert Kimutis, Lihong Zhou, Mark Mazzella, Jim Addis

Due to the surge in shale gas production, a substantial number of unconventional shale gas wells have been drilled across U.S. coal reserves. Gas breaches resulting from damaged wells pose a considerable safety risk to miners. This paper investigates how a ventilation system can effectively manage breached gas through a network-based numerical model and laboratory-scaled physical model. Several hypothetical gas breach scenarios in a longwall area are simulated, exploring factors influencing gas mitigation. The study establishes correlations between breached gas inflow and gas concentration at critical locations. The findings in this study provide valuable insights for managing mine ventilation systems and enhancing coal miner safety.

Feb 1, 2025

By John A. Cordes, John J. Schanz

INTRODUCTION The economic structures of industrialized countries require a continuous supply of reasonably priced and appropriately processed nonfuel minerals. As a result, national policy makers are sensitive to real or perceived threats to the effective operation of these commodity markets. Their most persistent concerns can be subsumed into the related political economy issues of supply availability and marketplace stability. These concerns are not new. For over a century the "global struggle" for mineral resources has influenced national policies and international relations (Eckes, 1979). During the past two decades the complexity of these issues, if not their place on national political agendas, has increased. Dramatic changes in the structure of mineral industries and in the nature of international economic relations have redefined policy needs and response options. This paper focuses on how selected OECD countries have responded to nonfuel mineral industry issues over the past twenty-five years. Particular emphasis is placed on the impact these policy decisions have had on the size and location of productive capacity and its utilization rates. The results, perhaps, are not surprising for this group of market- oriented economics. While individual cases of significant impact are easy to identify at various times in most countries, the overall importance of policy decisions has not been great. This is especially true for the past decade when excess capacity reached unusual highs of magnitude and duration. Macroeconomic forces and market structure changes played much more important roles. PERSPECTIVES ON THE ISSUES OECD nations dominate the international nonfuel minerals marketplace as producers, consumers and traders. In 1986, these twenty-four countries accounted for 75 percent of the Western world's export trade value in minerals, ores and metals. They imported 88 percent of the total value. During 1966, the respective percentages were 70 and 94. Japan was the world's largest importer in 1986 followed by the US, FRG, UK and France. The same five countries led the 1966 list except that, then, Japan was ranked fourth. Table 1 ranks the fifteen largest Western exporting nations in the two specified years. It also indicates the growth in current export dollars earned in 1986 compared to 1966.

Jan 1, 1989

By E. Marques Coelho

Cationic flotation of quartz is currently utilized in the concentration of iron ores and the cleaning of phosphate concentrates. The present work deals with depression of quartz in the presence of aluminum aqueous species during cationic flotation. It was established that aluminum species depress the flotation of quartz with an amine, especially under neutral and slightly alkaline conditions. With an amine as the collector, studies of the adsorption (abstraction) of Al species on quartz surfaces, as a function of pH, correlated well with the depression of this mineral. The presence of Al species also enhanced the depressant action of corn starch on quartz. In addition, the sodium salt of ethylenediaminotetraacetic (EDTA) was found to be an effective complexing agent to suppress the depression caused by aluminum ions.

Jan 1, 1992

By G. Wang, L. R. Moore, Y. Xiong, J. Gu

"Quartz is the second most abundant mineral in the earth’s crust. Not only does quartz have many valuable industrial applications, it is also one of the most concentrated gangue minerals encountered in the processing of other minerals. Minerals such as hematite, apatite, calcite, feldspar, barite, and many more. Numerous applications of industrial minerals are sensitive to the hardness and abrasiveness encountered with quartz minerals, while other applications may lead to processing challenges for the end user. Therefore, process and chemistry optimization must be applied to ensure optimal grade is obtained for these valued industrial minerals. Extensive studies have been conducted in processing various industrial minerals, thus achieving a range of quality specifications, which entailed the application of ArrMaz’s CustoFloat and CustAmine collectors towards the separation of quartz from other minerals. INTRODUCTION Industrial minerals often have the misfortune of the gangue mineral being very similar in surface charge, and coordination properties, to that of the mineral of interest. An example is seen in phosphate beneficiation, when dolomite can be a gangue minerals (Table 1). Therefore, the development of processing reagents are quite complicated. Some minerals, like clays, may be washed away. However, most require the manipulation of the pH, in efforts to fine tune the system to the narrow difference in isoelectric points of the different minerals, as well as the knowledge, and resources that are necessary to exploit the differences to yield and an optimal grade/recovery. In some cases, the application of a depressant may be required, such as the phosphoric acid commonly applied to achieve the optimal balance of grade/recovery for phosphate from a mineral with elevated concentrations of dolomite (Wang, 2016), or the application of hydrofluoric acid to assist in producing feldspar product from a mineral rich in quartz (Heyes, 2012).ArrMaz's CustoFloat and CustAmine product lines have successfully been applied to the processing of industrial minerals for more than 50 years. Applications include, but not limited to phosphate, sand (glass, foundry & high purity quartz), clays (feldspar, kaolin, etc.), and many carbonaceous and sulfate minerals. The successes of these 50 years are largely due to ArrMaz's ability to tailor make the processing chemistries to fit the ever changing and declining mineral feed grade and variations in water quality (Moore, 2015; Moore, 2016). This technical knowledge of mineral processing is strongly complimented by the intimate service programs in place at many of the beneficiation plants."

Jan 1, 2018

By Patrick J. Doig

The NS9 Drop Shaft contract formed part of the Waste Pollution Abatement Program (WPAP) conducted by the Milwaukee Metropolitan Sewerage District (MMSD). The contract involved the construction of two shafts, a deaeration chamber and connecting tunnel, and ancillary facilities. Portions of the construction were located in saturated overburden where dewatering was prohibited. Ground freezing was utilized for temporary support of the excavation. This paper concentrates on the freezing system and the excavation of frozen ground, with particular emphasis on the use of mechanical cutting equipment, including a raiseborer and a roadheader.

Jan 1, 1991

By C. H. Rawlins

The total amount of ferrous slag generated in the U.S. is about one-third the amount of iron ore mined, thus ferrous slag can be considered a significant mineral body for processing. Steelmaking slag contains up to 30 wt.% metal of which only the >25mm fraction is commonly recovered. A grinding study was conducted of BOF, EAF, and LMF slags using the Bond Work Index method to determine grindability to 106µm. Work Index values obtained were 13.8-24.9 kWh/ST, depending upon the slag type and composition. Steel particles were magnetically recovered from the crushed and ground samples for size-by-size analysis, yielding up to 18 wt.% of the slag weight recovered as magnetic. The recovered material, as characterized by inert gas melting, was found to be 61-96 wt.% metallic.

Jan 1, 2008

By P. D. Pack, E. H. Skinner

During design of a 550-foot rectangular shaft in alluvium, lateral support within the excavation was an anticipated construction problem. Actual experience showed that the nearly 9 x 14 foot excavation required no lateral support. A strain measurement program con- current with construction and for a 9-month period following completion of the shaft detected only minor strains. Shaft design included consideration of available geological information. Site exploration included a 754-foot drill hole, cored at selected intervals, and a suite of geophysical well logs. Generalized physical properties of the alluvium were developed from laboratory core testing. An elasto-plastic, finite element computer program (DAHLKE) developed by the Spokane Mining Research Center U.S. Bureau of Mines, has been recently used to analyze the behavior of the alluvium around the shaft. Analysis showed that yielding first develops in the shaft corners and progressively expands into the wall zones around the shaft as loading increases. Gradual growth of a plastic zone progressed outward from the excavation boundary at increasing loads but had limited extent and was surrounded at all stress levels by an infinite elastic zone. This design review, aided by computer analysis, confirmed that the shaft would have been considered theoretically stable as designed.

Jan 1, 1977

By D. W. Gillmore

Numerous orphaned strip mines and old refuse piles scar the landscape, contributing to stream pollution and degradation of the natural environment. Field experiments to reclaim acidic surface-mined spoil and refuse banks with fly ash from bituminous coal-fired powerplants were conducted at several sites in West Virginia. Fly ash served as a neutralizing agent and soil amendment, permitting vegetation of waste lands and disposal of large quantities of ash. Reclamation of land by this method is estimated to cost about $300 per acre of leveled site, depending upon the topography of the land and quality and availability of the fly ash.

Jan 1, 1972

By John Brouwer

Through the use of good preventive maintenance procedures in which the work of both production and maintenance personnel is well-coordinated, production downtime can be drastically minimized, and costly repairs and interruptions in planned maintenance and production schedules can be eliminated. There had been some conflict in the past between production and maintenance people over the proper method of achieving maximum machine performance. The usual practice was to operate production equipment at maximum capacity for the longest possible time until breakdown occurred, and then make hurried repairs to get back into production. In most cases, these repairs involved unscheduled work and were thus performed inefficiently. Both production and maintenance have the same objective: to produce a quality product at maximum efficiency and at minimum cost. Preventive maintenance is a common tool available for both production and maintenance personnel to achieve this objective. Actually, one of the main objectives of preventive maintenance is to find any abnormal machine condition that may cause machine failure before a breakdown occurs. This makes it possible to plan and schedule maintenance work with the least amount of interruption and plan production volume with a higher rate of accuracy. Maintenance people prefer to perform this work on a scheduled basis and get away from the "crash" situation that accompanies breakdowns. They thereby increase the utilization of available manpower and machine time, prolong equipment life, and improve maintenance costs.

Jan 1, 1979

By M. A. Rodrigues da Silva Enríquez

One of the rare consensual points among different resource-based economic analytical approaches refers to the strategic role of rent from mineral extraction, as a decisive tool to ensure that the temporary wealth generated in the present can turn into permanent income in the future. For this reason, evaluation, distribution and use of mining rent plays a central role in the sustainable development of mining cities. Brazilian legislation provides for this at the municipal level by means of participation in the financial results of mineral extraction accomplished in these municipalities, with the Financial Compensation for Mineral Exploration (CFEM). CFEM is a type of ad valorem royalty, which charges taxes of up to 3% of the net revenue of mineral production. However, legislation does not establish how these resources should be used. Therefore, there is wide variation in the use of CFEM income among Brazilian mining cities. A study from a sample of the 15 largest mining cities in eight Brazilian states made possible identification of two main patterns with regards to the use of CFEM which were labeled "sustained use" and " the pitfall of the single treasury." In that regard, this article discusses the pressuring factors that contribute to these patterns, as well as the institutional arrangements which may be more favorable to inducing more sustained use of CFEM.

Jan 1, 2011