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By J. C. Moreno, G. Rios, M. Palacios

The Huelva smelter was commissioned in 1970 coinciding with the shutdown of the old smelter in the Rio Tinto mine site. That new smelter consisted of two Momoda blast furnaces with a capacity of 500 dmtpd of concentrate. Nevertheless, soon after their start-up, it was clear that an increase in the smelting capacity was needed. After an analysis of the existing alternatives at that time, the flash smelting technology was chosen. The new Outokumpu Flash Smelting Furnace (FSF) came into operation on 18 September1975, with an initial capacity of 900 dmtpd of concentrate, using four Venturi-type burners and preheated atmospheric air. Since that date the Huelva Smelter team, together with Outokumpu (now called Outotec), have continuously improved our FSF design, process conditions and operational practices, leading to a present capacity of 3,500 dmtpd of concentrate. Since 1975, five smelting campaigns have been completed, the last ending in November 2013 with the rebuilding of the original FSF hearth. This paper describes the history of these improvements and the lessons learned.

Jan 1, 2014

By Mike McKevitt

We are trying to promote a concept and a change in management?s approach to the iterative process of grade control. This is important as grade control must routinely try and achieve the long term objectives set by the mine plan ??BackgroundBackground ??Factors contributing to variation from planFactors plan ??Basis of OptimisationBasis Optimisation ??Ore Block Optimisation processOre process ??Operating mine examplesOperating examples ??Chain of Mining. ??Intention is to highlight the need for repeatable and consistent materialand material-type classification to remain consistent with the Life of Mine Plan ??We can drill another hole or reWe re-optimise a plan, but once excavated, the final decision has been made ??The grade control decision is the last decision made in the resource exploitation sequence.

May 1, 2009

By Janice Zinck, Ian London

In recent years, the secure supply of critical and technology metals has become increasingly important tomajor industrialized economies that seek to sustain their industrial base and develop advanced technologies, such as clean energy. Canada, with its significant reserves of rare earth element (REE) and other metals, has an opportunity to supply some of the global demand for these materials. However, to transition from promising mineral deposits to marketable products, investment in strategic research and development (R&D) and expertise is needed to address the complex technological challenges around the production, separation and processing of these metals, and to better understand the global market for these key commodities. To this end, in its April 2015 budget, the Government of Canada committed to invest $23M over 5 years to accelerate production of REE and chromite/ferrochrome. The goal of this program, developed in close association with industry, is that Canada contributes a sustainable supply of REE to the global market. The research and development program will provide the technological capacity to establish a Canadian REE industry. This paper will discuss REE R&D advances achieved in the first year of the program in areas of mineral characterization, beneficiation, leaching, separation and environmental management and will highlight the Canadian model of collaboration where industry (e.g. prospective producers, technology companies), government, academia and other stakeholders work closely to ensure that the R&D is targeted, innovative and effectively deployed and commercialized.

Jan 1, 2016

By Barton G. Stone

The mining and exploration industries have been using Geostatistics (Matheron, 1963) for the past forty years. It has been extensively incorporated into three dimensional block modeling software whose usage has reflected the growth in the use of personal computers since 1980. Because of the utility of geostatistical models in mining and production planning, much of the modern reserve and resource modeling is done by mining engineers, geostatisticians and geological engineers. Explorationists are initially less concerned with three dimensional models until such time as a deposit has been roughly delineated. However, the concept of regionalized variables in ore deposits deals with the effect of spatial correlations between data points in a three dimensional sample space and should be useful for optimizing the spacing of drill holes to allow maximum bang-for-the-buck in drilling programs. This paper examines three common deposit types (porphyry copper, VMS and intrusive gold) to examine whether geostatistical methods have been used to minimize drilling costs because of better understanding of spatial correlations. The three model types were chosen from publicly available corporate websites of Canadian based Junior Mining Companies. They include the Wolverine polymetallic zinc deposit of Yukon Zinc in Yukon, Canada; the El Morro Deposit in Chile (30 percent ownership by New Gold Mining Company, and the Fort Knox Gold deposit in Alaska and 50 percent ownership by Nova Gold Resources). Typically, individual mining corporations post their technical reports as CNI 43-101 reports on their corporate website as indications of the favorability or progress on their more exciting properties. Data considered for this paper was not collected or generated by the author, but the information was extracted from these publicly available sites and had a variety of authorship.

Oct 1, 2009

By A. Sargeant

This paper evaluates the application of post consumer glass as a cementing agent in underground mine backfills. The underlying theory indicates that glass is pozzolanic and, when used in a finely divided form, behaves as an activator to generate binding products, thus contributing to the development of backfill strength. The objective of this study was to evaluate the strength performance of backfills when Normal Portland Cement is replaced with various percentages of post consumer glass. The study evaluated the performance of backfills prepared using tailings from three mines. Each backfill was prepared using unique recipes, and were evaluated at cure times of 7, 14, 28, 56, 112 and 224 days. Laboratory work involved visual, physical and chemical material characterization followed by strength evaluations. Results of strength assessment revealed that backfill prepared with glass is reactive and can contribute to the strength of backfill. The results also indicated that the reactivity of glass may be affected by the incorporation of slag within the recipe, the availability of lime and the level of hydration of the binders. The study concluded that, at 15 % glass replacement of NPC, backfill prepared with mine tailings, NPC and glass can achieve improved or equivalent strength performance compared to backfill prepared tailings and NPC alone.

May 1, 2007

By S. V. Burr

"IntroductionOne of the more puzzling geological enigmas, in the writer's opinion, is how rock can move sideways with respect to other rock. In the writer's study of regional northwest-southeast folding in North America (Burr, 1980), he may have found the answer to horizontal offset.Horizontal OffsetSideways movement or horizontal offset does not mean that the movement was, or is, horizontal. As indicated below, the actual movement may be at a high angle from the horizontal. However, it is the horizontal VECTOR, or offset, which is measured on surface by geologists. Vertical movements (thrust, normal, reverse) can be understood, as they involve blocks of rock , generally separated on four to six sides, which have been pushed up or subsided. Vertical faulting across dipping strata can produce APPARENT horizontal offsets. However, this thesis deals only with ACTUAL offsets.The ProblemFigure 1 is a plan view of a simple hypothetical horizontal offset. Three vertical dykes are intersected by a fault lineament. Two dykes exhibit no movement; the middle dyke has been offset a distance (a). Vertical faulting would have produced no horizontal offset. How can a horizontal distance (a) disappear or appear? Rock expands or contracts in infinitesimal amounts.SolutionThe map (Burr, 1980) shows the writer's interpretation of regional northwest-trending folds in Ontario. The writer made two observations about horizontal offsets during his thirty year study of these folds:1) All major horizontal fault lineaments strike at a high angle to the northwest fold axes. Many of the northwest-trending lineaments are fault s, but their movement is essentially vertical.2) Close to many of the known horizontal offsets (and several lineaments), there are areas where plunge reversals are so frequent and close together it is impossible to draw in all the fold axes at a scale of 1 inch = 4 miles, and, in the highly faulted Espanola area southwest of Sudbury, Ontario, all the indicated folds cannot be easily separated at a scale of 1 inch = 1 mile. The writer has observed folds less than 30 feet apart next to the strong Puskitamica-Chibougamau fault in northern Quebec."

Jan 1, 1982

By H. T. John

"The objective of this paper is to demonstrate how the optimum cut -off grade can be calculated for typical large tonnage openpit mines. In the examples, it is assumed that the concentrator tonnage is fixed and that there are no market restrictions. The mining rate is assumed to be variable. This is usually the situation at an operating property.ModellingA model of the ore body is required to examine alternate cutoff grade strategies. The model must be accurate in its relationship between grade and tonnage. Table I shows a typical relationship between ore tons and grade for various cut-off grades. The average strip ratio is also shown. For higher cutoff grades, the ore tonnage is decreased and the ore grade is increased. Strip ratio increases with the cut-off grade.Using the relationship between ton s and grade, and assuming a homogenous, long life orebody, a simple calculation of the optimum cut-o ff grade can be made. The objective is to maximize the present value of cash flows. For the long life homogenous orebody example this objective is satisfied by maximizing present cash flows.Cash flow is calculated by subtracting operating cost from revenue . Operating cost will increase with the cut -off grade as the strip ratio increases."

Jan 1, 1985

By Poul Hansen

"In mid-1986, a world-class mining enterprise was created in Highland Valley, British Columbia, bringing together the copper mining operations of Lomex and Cominco . In 1988, Highmont joined the new partnership.Highland Valley Copper is the largest copper mine in North America in terms of both tonnage mined and tonnage milled, and it is one of the largest in the world. Due to its relatively low ore grade its production of copper in concentrate ranks about ninth in the Western World.The current eighteen year mine plan is based on ore reserves of 761 million tonnes. The daily milling rate is 133 000 tonnes. At the end of mine life, a total area of approximately 6500 hectares will have been disturbed. At this time, vegetation has been established on about 600 hectares and while work will be done during the operating years, it will not be until the end of mine life, about 2008, that the last half of the land can be reclaimed and revegetated.Once final reclamation has been accomplished, Highland Valley Copper will have completed its "" temporary use of the land"". In the meantime, about 1250people have had employment for about 50 000 man years, at wages ranking among the best in Canada.IntroductionTo provide and sustain our way of life, we need steel, copper, aluminum, zinc and many other minerals.To sustain mining, we must have adequate ore reserves and replacement of reserves as they are mined. Each year the search becomes more difficult as more of the Earth's surface is investigated and depo sits are mined. This calls for aggressive and sustained efforts.In British Columbia, past and present mining activities have disturbed less than one-tenth of one per cent of the land.With today’s technology, mining operations can be substantially reclaimed and thus complete the cycle of ""A Temporary Use of the Land""."

Jan 1, 1992

By J. D. Gillaspie, D. T. White

"Sulphuric acid atmospheric leaching of nickel saprolite / garnierite ores was proposed in the early twentieth century, prior to the development of the pressure acid leaching process for limonite ores. Sulphuric acid leaching with alkali addition for iron precipitation as jarosite has been considered periodically since the early 1970s, shortly after the development of the jarosite process for iron control in zinc refining. In the late 1990’s a series of flowsheets were proposed and tested involving simultaneous atmospheric leaching, iron precipitation and acid regeneration. These were considered particularly suited to sequential leaching of limonite and saprolite ores. A number of laterite sulphuric acid leaching processes utilising this chemistry have been put into commercial operation. Similar sequential leaching flow sheets involving precipitation of iron as goethite were also developed and piloted. This paper will firstly describe some of the important historical developments of both the jarosite and goethite processes. It will then provide descriptions of the commercialised processes involving alkali jarosite/alunite precipitation, with special emphasis on the downstream impurity removal requirements necessary for efficient recovery of nickel and cobalt from solution.INTRODUCTION This paper is a summary and extension of previous works with which the authors have been involved, on the subject of sulphuric acid leaching of nickel laterites (Adams, et al., 2004), (Liu H. , Gillaspie, Lewis, Neudorf, & Barnett, 2004), (White, Miller, & Napier, 2006), (White, 2009), (White & Gillaspie, 2013), (White & Gillaspie, 2015). Some of the historical developments of both the jarosite and goethite leaching-precipitation processes will be described, followed by a description of the commercialised sequential nickel laterite leaching processes, involving alkali jarosite/alunite precipitation and acid regeneration, with a comparison to the equivalent goethite based processes. These will include Jarosite Atmospheric Leaching (JAL), Goethite Atmospheric Leaching (GAL) and combined Pressure Acid Leaching – Atmospheric Leaching, termed EPAL®. There will also be an explanation of the downstream impurity removal requirements necessary for efficient recovery of nickel and cobalt from solution."

Jan 1, 2016

By J. E. Danoczi, J. A. Herbst

"Shore Gold Inc. (Shore) is presently designing a diamond processing plant for the Star and the Orion South kimberlite deposits in the Fort à la Corne (FalC) area in central Saskatchewan. The first step in the plant is diamond liberation and occurs in the comminution section. Diamond liberation is the process of breaking up the kimberlite rock, as gently as possible so as not to damage the diamonds.Autogenous grinding mills (AG mills) use a combination of impact crushing, abrasion and attrition to break up the kimberlite. The forces that occur during the actions of abrasion and attrition cause the kimberlites to break up preferentially along lines of weaknesses which offers a “diamond friendly” method of comminution.Hard competent kimberlite is commonly found in the diatreme zone as well as the root zone of the volcanic pipe and is the source of kimberlite for most of the Southern African diamond mines. Softer kimberlite is typically found in and around the crater area of a volcanic pipe and it is this kimberlite that makes up the majority of kimberlite for both the Star and Orion South deposits. These softer kimberlites can be readily broken up using abrasion and attrition imparted by AG mills. In order for Shore to benefit from the softer kimberlite found in the Star - Orion South diamond project, two large (10.97 m diameter x 7.10 m long) AG mills were designed for the comminution section based on extensive test work and simulations by Metso Minerals (Metso)."

Jan 1, 2012

By R. G. L. McCready, Marco Zentilli

"Brogan coal containing mean averages of 6,93% w/w total sulphur (1.1% sulphate sulphur, 1.6% organic sulphur and 4.24% pyritic sulphur) and 16.34% mineral ash was used as the test coal in these studies.Shake-culture leaching studies on seven size fractions of the coal, ranging in size from 0.045 mm to 1.7 mm, showed that the rate of pyrite leaching was inversely proportional to the particle size. As the use of continuous stirred tank reactors would be uneconomical for the reclamation of waste coal, column leaching studies were initiated on coal sieved to >6.35 mm to < 12.7 mm, The leachate was monitored for all metal ions and the release of iron was used to monitor the rate of pyrite oxidation . Measurable amounts of Zn, Co, Ni, Mn, and V, all of which can replace iron in the pyrite crystal structure, were released during the initial stages of leaching. Further, high concentrations of AI, Ca and Sr and trace amounts of Sn, As. Se, B, Ca, Cr, Si, and Ti were detected in the column effluents.These studies suggest that bacterial leaching will remove the pyrite and qualitative amounts of environmentally undesirable trace metals from the coal if such a process is developed for waste coal reclamation.IntroductionIn 1947, Colmer and Hinkle showed that acid mine drainage was the result of an oxidative attack of the iron-mineral sulphides by Thiobacillus ferrooxidans to produce sulphuric acid . Ashmead (1955) proposed the use of these organisms to desulphurize coal , but the subsequent research effort was concentrated on the metabolism and physiology of these extreme acidophiles.A limited number of studies have been reported on the bacterial leaching of pyrite from coal (Silverman et al., 1963; Dugan, 1977). However, the bacterial oxidation of pyrite is a self-limiting first-order reaction, probably due to the precipitation of Fe(OH)J and elemental sulphur , which progressively inhibits intimate contact between the bacterial cells and the sulphide-mineral surface. Consequently, the best pyrite oxidation experiments with coal reported to date required five days to remove 97070 of the pyrite (Dugan &Apel , 1978) using mixed cultures of T. ferrooxidans and T. thiooxidans."

Jan 1, 1985

By C. Pichler, J. Antrekowitsch

During the production process of steel and other metals a lot of different by products are generated in high amounts. Some of these residues are recycled to recover valuable metals like zinc, lead, copper and others. Especially the treatment of steel mill dust presents a great challenge. The need for new technologies can be seen in the wide range of available recycling concepts for steel mill dust treatment, however most of them have significant disadvantages. An example is the waelz process, which generates about 650 to 700 kg slag during the treatment of 1000 kg steel mill dust. This so called "waelz slag" must be dumped in the most cases. To avoid a landfilling all generated products must be able to get reused in another application. A so called "Zero Waste Process" can be reached with the "2SDR Process" (Two Step Dust Recycling Process), in which the dust is treated on an liquid iron bath generating cast iron, inert slag and zinc oxide. These products have a further usage and can also be sold. The paper focuses on the process development through trials in lab and technical scale up to planned pilot scales, with an accompanying characterisation of the generated products were done.

Jan 1, 2014

By William M. Luff

"The Bathurst area has recorded mining production as early as 1837, although the bulk of the production has come in recent years. Production has been mainly from the well-known massive sulphide deposits, but vein, gossan, and a variety of other deposits have also been mined. This paper summarizes the history of the mined deposits, along with tonnages and grades produced.A number of ""firsts"" have been noted in the Bathurst area. The A Zone deposit, located in the Heath Steele area, was the first in the world discovered using airborne electromagnetic methods. Heap leaching of gold from the gossan zone at Caribou was the first operation of its kind in Canada. The Keymet mine was the first base metal (lead-zinc) mine in New Brunswick. For the past few years, the Brunswick No. 12 mine has been one of the largest zinc mines in the world.IntroductionThe Bathurst area (Fig. I) first had mining production in 1837 when copper was mined from a deposit on the Nepisiquit river (MacKenzie, 1958). The majority of the production, however, has been in recent years from massive sulphide deposits, but there are also other significant operations.Table I is a summary of Bathurst area mineral production, showing concentrator feed tonnages and mill feed grades. The table does not include peat deposits, sand and gravel, dimension stone or rock quarries. Figure I is a general geology map of the Bathurst area, indicating deposit locations. The deposits are divided into four categories: massive sulphide, vein, gossan and other. The deposits in each category are described in chronological order of exploitation."

Jan 1, 1995

By G. Dubé, A. Leclerc, P. Quinn, G. E. Agar, J. Y. Clouthiér, J. D. McLaughlin

"Gold dissolution by cyanide requires the presence of oxygen which is usually supplied by sparging compressed air into the gold containing slurry. For those ores that contain certain obnoxious substances that consume oxygen, maintaining the required minimum level of dissolved oxygen can be troublesome. One of the most economical solutions to the problem of low dissolved oxygen, especially in plants that have air compressors installed, is to enhance the rate of oxygen mass transfer.The oxygen mass transfer rate was measured in a two phase system using two different sparger arrangements, and with addition of a frother that is known to reduce the bubble size produced by the sparger. The common sparger system was shown to be inefficient compared to a readily available but under utilized method of gas dispersion which introduces air directly below the reactor turbine. Transfer of this technology to an operating plant confirmed the beneficial effect of the improved sparger system. The addition of the frother did decrease the bubble size, but it also reduced the oxygen mass transfer rate."

Jan 1, 1993

By Lawrence Devon Smith

What is a Failed Project? For mining projects, some key indicators of a ?failed? project are: ? Cost is more than it should be (particularly capital) ? Schedule ? It takes longer to build than expected ? It takes longer to ramp-up than expected ? It does not do what it is supposed to do ? Poor performance; output, product specifications; ? Low revenue ? High costs ? No one is happy about it: Management, Shareholders, Bankers ? Does a project fail if it does not meet expectations that were unrealistic and unattainable? ? Caution: Failure may not become evident until years later

May 1, 2010

By G. W. Toop

"The Cominco smeller in Trail, British Columbia, is a large integrated lead-zinc production facility. In the plant description, emphasis is given to the pyrometallurgical operations including zinc concentrate roasting, lead singer-blast furnace processing and silver refining. Production figures for the main metal products - zinc, lead, silver and gold - are provided.IntroductionIncorporated in 1906, Cominco Ltd. is an integrated natural resource company with principal activities in mining, smelting and refining, mineral exploration, fertilizer production and electrical power generation.Cominco is one of the world&apos;s largest producers of zinc and lead, accoW1ting for about 10070 of mine production in the western world. The company also produces and sells copper concentrate, copper sulphate, copper arsenate, sodium antirnonate, silver, gold, cadmium, bismuth, indium, and germanium dioxide and a range of fertilizers and sulphur products.Zinc OperationsRoastingThe roasters currently treat about 1400 t/d of zinc concentrates. Over half of the total concentrate treated originates from the Red Dog Mine in Alaska. During the summer, concentrate is shipped from Alaska to Vancouver where it is loaded into rail cars and hauled inland, transferred to trucks and delivered to Trail. The remainder of the roaster feed is made up of Sullivan concentrate and various custom concentrates. These arrive either by train or by truck.There are three roasters available for roasting the concentrate. The two major roasters are Lurgi fluid bed units. Each Lurgi roaster can process concentrate at about 1:7 tonnes per hour (tlb). A smaller Cominco suspension roaster with a capacity of 10 tlb is also used. The flowsheet for the high temperature section of the fluid bed circuit is shown in Figure 1.Concentrates fed to fluid bed roasting are conditioned with 7 1/min water to give 8% moisture in feed. Two slinger belts throw the mixture into the fluidized bed. The fluid bed roasters are 10.4 m in diameter with a bed depth of 1 m. Grate area is 84 m2• Normal operating conditions include bed temperatures of 930°C to 950°C, fluidizing air at 750 Nm3/min and a wind box pressure of 2000 mm H2O."

Jan 1, 1994

By J. P. Harrison, G. F. Gambino

"This paper examines unpredictability in the parameters governing hydraulic fracturing (HF) as used in stress amelioration for underground excavations, with the aim of showing how this unpredictability may affect design decisions. Using uncertainty models that are appropriate to particular levels of information and degrees of uncertainty, this paper demonstrates how these can aid in decision-making related to feasibility assessments of HF arrays for stress amelioration.Cave mining operations produce large underground voids and high stress concentrations around critical mine locations. These stress concentrations increase the potential for rock burst events. Although de-stress blasting has a long history for redistributing high stress concentrations, to improve safety and reliability HF is now being trialled as an alternative.Unfortunately the HF process is extremely uncertain, and so predicting fracture propagation geometry is difficult. Although the major parameters governing HF propagation have been previously identified, no indication has been given regarding the contribution that uncertainty in these makes to unpredictability in the overall HF system. Using simplified models of HF and referencing a recently proposed characterization of unpredictability, we relate unpredictability in the various governing parameters to the effect it has on strain energy density (SED) in the surrounding rock. Within these models we analyse SED as well as the stress intensity factor (KIc) when investigating the effect of parameter uncertainty and its influence on various crack propagation criteria (Sih & Macdonald, 1974). These models are applicable to unpredictability associated with the development of new fractures; the case of pre-existing fractures is the subject of on-going work.The paper will assess in greater detail the various governing parameters, and investigate the appropriate use of other uncertainty models. As a result, we will show how assessment of uncertainty in HF parameters can be used to both guide feasibility studies and determine the optimal allocation of resources to improve the final design."

Jan 1, 2015

By Jan Rosenkranz, Anders Sand, Lisa Malm, Nils-Johan Bolin

Within flotation technology the general trend is towards very large cells. Scale-up is usually done by postulating geometrical similarity, which implies keeping the aspect ratio constant when increasing cell volume. Consequently, the design of flotation circuits typically involves several cells of identical geometry within a bank. Using a few standard sizes in a flotation plant simplifies design, manufacturing and maintenance of the cells, but does not necessarily guarantee optimal performance and selectivity of the flotation process. Geometry parameters for a given cell volume that influence flotation cell performance include cell height, which causes changes in the hydrostatic pressure and suspension hydrodynamics, and also influences the travel distance of particle-bubble agglomerates as well as the homogeneity of the mixing. Also the thickness of the froth layer depends on the aspect ratio of the cell. The objective of this work is to gain a better understanding of material distribution and properties within a flotation cell and, based on this information, elucidate how alterations of the cell geometry can influence separation efficiency. For this purpose systematic measurements and analyses of the spatial distribution of the different phases within a 160 m3 flotation cell have been carried out with a particular focus on an industrial, low-grade copper ore beneficiation process. The concepts for sampling at different vertical and lateral positions of the flotation cell are introduced. The results from the experimental work give an understanding of internal material distribution within flotation cells. Based on the measured phase distribution and concentrations as well as particle properties at various positions within the cell, the implications for an optimized scaling and design of individual flotation cells within a flotation circuit are discussed.

Jan 1, 2016

By Sean Dessureault

Technological Revolution ?Information age ? brought about by: ?Low-cost processing, storage, information sharing ?Shared & integrated data ? Increasingly more sensors & data sources From data collection to data use ??Data mining??analyzing the huge volumes of data ?Key example used in MBAs: ?Wal-mart, Google Explosion of data, trickle of information ?Paralysis of action Outline Trying to provoke- What drives innovation now? ?Challenges in mining Data Action Approach ?Examples from research & consulting upon request Conclusions ?Unaddressed challenges (Research Opportunities)

May 1, 2006

By Robert B. Parsons

"Two recent decisions by the Canadian courts could reduce the taxes paid by many profitable mines in Canada. At a time when the mining sector is hurting from an ever increasing tax burden and soft prices, the results of two cases are welcome news. Mining companies are well advised to check prior years&apos; tax returns in the context of these developments. IntroductionSince 1976, the income tax legislation has provided a reduced rate of tax for taxpayers engaged in the mining of mineral resources, through the mechanism of the ""resource allowance"". The deduction given for the resource allowance effectively reduces the federal rate of tax by one quarter on resource profits. In general terms, ""resource profits"" are defined to include a taxpayer&apos;s income from: the production and processing in Canada of ore to any stage that is not beyond the prime metal stage (or the pellet stage or its equivalent in the case of iron ore); and, royalties computed with reference to the amount of value of production from mining operations in Canada.In computing income from these sources, the taxpayer must deduct expenses that may reasonably be regarded as applicable to those sources, with the exception of expenditures for Canadian exploration and development or financing costs.As a result of the mechanics of the calculation of the resource allowance, one quickly realizes that the lower the expenses deducted from the resource profits, the higher the resource profits and consequently the higher the 25% resource allowance. The impact of the recent court cases is to narrow the range of expenses which are required to be deducted in the determination of the resource profits.The two cases are outlined below."

Jan 1, 1991