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By H. Lyn Bourne

This is the seventh annual tabulation of royalty information. It is also the first year in which some data have been deleted to make room for new data. The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity. However, some people incorrectly believe that the selling price and the royalty are the same thing. The contract between the owner (lessor) and the mining company (lessee) is the mineral lease. Some clauses that are common to mineral leases include: identification of property, granting clause, reservations, definitions, royalty rate, taxes and title, indemnity, termination, inspection, assignability, successors, and reclamation. There often are variations in royalty rates for a given commodity that reflect differences in location, quality, market conditions or public versus private ownership. History In the time of ancient Rome, the government owned the mining properties by virtue of conquest. It would lease the mines to favored citizens who would pay rent to the State. Various conditions of sovereign ownership of both land and mineral rights continued in Europe until the Renaissance. As the laws evolved for land ownership by private citizens, the concept that minerals belonged to the State (King, Crown, sovereign) continued until about the 15th century. Free miners challenged the notion of sovereign ownership and won the right to discover and claim minerals. But a portion of their production had to be paid to the sovereign - a royalty. So, the original concept of a mineral royalty was a tax on production that was due to the Crown or Church. The term mineral royalty, as it is known today, is a payment to the owner of the mineral rights (formerly the royal owner) for the privilege of mining and producing the mineral commodity. The owner of the mineral rights, the lessor, and the mine operator, the lessee, enter into an agreement to mine the property. The agreement is the lease. While this concept is common, there are some who do not understand that the royalty is a portion of production paid to the owner as agreed on in the lease document. This author has seen reports where the selling price of a commodity has been quoted as the royalty. ("They get 70 cents a ton royalty at their pit and the guy down the road only has a 65 cent royalty.") These reports have been authored by people not familiar with the mining industry. Lease clauses In addition to the amount to be paid the lessor, there are several other items to be addressed in the lease agreement. The following list may not be all inclusive, but briefly describes most of the common clauses any good mining lease should contain. Identification: This opening clause names the owner (lessor) and the operator (lessee), the address of each, and gives the legal description of the property. Granting clause: This part of the lease gives the time period or duration of the agreement and information about renewal periods. It also has language about the exclusive right of the lessee to mine the property. Reservations: If the owner wants to exclude any portion of the property or set some specific conditions about the operation, there needs to be a clause that describes these reservations. Definitions: This section should address some of the technical terms that the lessor may find confusing - short tons versus cubic yards, dollars versus percentage of average selling price, any escalator indices such as consumer price index or producer price index, and material mined versus material sold. Royalty: This section spells out what the royalty rate will be, how often it will be paid, if there is an annual minimum, the pay dates, and how the records will be kept. This section also describes the conditions under which the lessee is exempt from the annual minimum - natural disasters, strikes, governmental actions, or other causes referred to as force majeure. Taxes and title: The lease needs to identify who is responsible for the property taxes, severance taxes (if applicable), and other taxes that relate to the mining activity - taxes on equipment, improvements, or stockpiles. This is a good place in the lease for the owner to certify his ownership of the property and its mineral rights and also certify that no other leases are in effect. The lessees may want language that allows them to pay mortgages or other debts on the property to keep their lease in effect. Indemnity: This portion of the lease identifies that the lessee assumes the risks for lessee's mining operation. Lessor should expect indemnification by the lessee through standard insur¬ance policies - workers compensation, liability and property damage. Termination: Both the lessor and lessee want language that will allow them to terminate the lease. This section of the lease describes the conditions under which one of the parties may terminate the lease (failure of the

Jan 1, 1989

By William H. Dresher

Introduction A subject long debated but rarely resolved involves the interaction between the academic community and industry in the sponsorship and conduct of research. The subject is, unfortunately, too often treated as a controversy involving ethics and the profit motive. But, in fact, the two branches of society - industry and academia - are necessarily part of the same system. In the last 25 years, the realization has developed that research alone is not sufficient to bring about use of those results to benefit society through productivity gains and economic growth. The flow of events shown in Fig. 1 was generally believed to be the steps required for reaping the benefits of research. Today, research still has the very important role of creating new information or new ideas. However, it is recognized to be but one of many steps in a process that we now refer to as technological innovation. Charpie (1967) said, "Technological innovation is the driving force behind economic growth in the US. In this context, innovation means the process by which a new idea is successfully translated into economic impact within our own society, by providing better products, and simultaneously creating new jobs in the manufacturing of those products. Only after an investigation is put into sufficient use to have an economic effect, is it termed an innovation." One of the best depictions of the technological innovation process is shown in Figs. 2 and 3. These are adapted from Haeffner (1975), and modified by the Committee on Mineral Technology of the National Research Council (1981). Figure 2 identifies the many steps involved in the process. It designates a generalized form for interaction between the academic community and industry. Figure 3 identifies the steps in the "innovation activity" box of Fig. 2. Academia is generally responsible for developing of new knowledge and ideas, as well as maintaining and enlarging the collected body of scientific knowledge. Industry is responsible for developing new products, methods, and processes. Both institutions operate for the benefit of society, but under different driving forces. In academia, the driving force is the achievement of academic excellence. In industry, the driving

Jan 10, 1984

By James W. Stewart, A. C. Colvine

Introduction Precambrian shield terrains the world over are experiencing an unprecedented level of concerted exploration for lode gold deposits. Reasons for this include: • The increase in the price of gold (following 40 years at $1.13/g or $35 per oz) has transformed targets that were once unattractive into viable exploration propositions. • The relatively suppressed market for other metals produced from shields (base metals, nickel, iron, and uranium) has further focused exploration attention on gold. • The preeminence of gold production from rocks of early Precambrian age, as shown in Fig. 1. • The relatively high grade of gold in these mines (averaging about 10 Wt or 0.29 oz per st) permits profitable extraction even under depressed gold prices. A number of these mines have been in continuous operation for more than 50 years. • The recent discovery of the major Hemlo deposit, in well exposed rocks adjacent to the Trans Canada Highway, has had a world-wide impact. This demonstrates that a major new deposit can be found even in an accessible, well exposed area of a shield; gold mineralization is susceptible to rational exploration; and new target types for gold exploration exist. This paper reviews exploration activity for gold in shield terrains worldwide (Fig. 2), excluding Early Proterozoic paleoplacers of the Witwatersrand type. Emphasis is on the Archean, which is traditionally the most productive part of the Precambrian shields. There is also an emphasis on the Canadian shield (Fig. 3) because of its vast areal extent and exceptionally broad range of mineralization styles. Geological Approach A basic problem exists in gold exploration when compared to exploration for base metal massive sulfides that predominated during the 1960s and 1970s. Gold concentrations cannot usually be detected by airborne geophysical instruments. The majority of massive sulfide deposits were detected using airborne electromagnetic detectors and magnetometers. A full 75% of Canadian gold discoveries can be credited to surface prospecting. The percentage is even higher in other countries. This observation allows for great optimism for two reasons: • Large areas of shield terrain are obscured by either surficial deposits (glacial tills, clays, and desert sands) or deep surface weathering. This makes them inaccessible to prospectors. Logic dictates that such obscured areas should have the same potential for gold concentration as has exposed bedrock. • The Hemlo style of mineralization, a roughly tabular ore body where gold is associated with disseminated sulfides, is different from the traditional prospecting target. The gold is hosted by discrete quartz veins. While it is true that limited discoveries were made at Hemlo more than 30 years ago, and this style of mineralization is present elsewhere, recent

Jan 12, 1984

By Pratima Meshram Abhilash

In this review, availability of germanium in primary and secondary resources and its recovery from these resources are presented. With nearly 40% germanium consumed in fiber optics and scarcity of resources, the global consumption outplays the primary production. Germanium exists as a substituted element in zinc sulfide matrix of lead–zinc sulfides and lignites. Nearly 60% of the germanium supply is met by zinc refining residues, and about 20–30% of germanium is produced from coal and its by-products. Germanium recovery from various resources such as zinc plant residues, coal and coal plant waste, spent optical fibers, and copper flue dust has been examined. Bioleaching was exploited by few researchers to extract germanium from zinc sulfides, sulfide tailings, jarosite, coal fly ash, and flue dust. This review covers the various work carried out by different chemical separation processes, viz., chemical precipitation, solvent extraction (SX), ion exchange (IX), and membrane processes, as well as biological approaches.

Jan 16, 2022

By E. Stiakakis

The paper presents a geotechnical simulation of the "Mavropigi" open pit mine (Western Macedonia Lignite Center, Greece), using the finite element method. The simulation was based on the initial planning of the pit using Mohr-Coulomb and Soil Hardening models. Results indicate high stability factors as well as the magnitude of the expected horizontal displacements and floor heaving. However, these deformations do not influence decisively the overall stability unless locally adverse tectonics are encountered. Results can be used in the ongoing update of mine planning and stability evaluation.

Jan 1, 2006

By Harry Sutcliffe

THE PROBLEM Two and a half years have gone by since the December, 1976 Civil Engineering article on subway costs caused such a furore. What has happened in this interval? Even after discounting the crushing inflation rate, costs are still increasing, and there is no sign of a turndown, even in the rate of increase. Some steps outlined in the article have been taken. In April this year, the first D.O.T.-sponsored Peer Review Group, made up of managers of other transit properties, met in Boston to review MBTA's $500 million Red Line Extension-Northwest for cost effectiveness. While the impact of a review at the end of the design phase, with substantial segments under contract, cannot be as effective as a review early in the design phase, it is nevertheless a start. This first meeting will be followed by a review of Boston's Orange Line relocation, the final design for which is just underway. In the industry at large two facts are evident: 1. We are failing to reduce underground construction costs. 2. Underground construction is in danger of pricing itself out of the market place. It has always been a greater challenge to design a Chevvy than to design a Cadillac, but it is the Chevvy we need today. Much attention has been focussed in the past on engineering design in the narrow sense: areas such as ground loading conditions and concrete design. This paper will attempt to make the case that costs in urban underground construction are primarily outside the area of structural

Jan 1, 1979

By James H. Dye, N. E. Norman

There will be about 300 raise boring machines used worldwide by late 1981, attesting to the acceptance of this drilling system by the mining and construction industries. Over the past few years, many articles have cited the advantages of raise boring: •improved safety; •faster completion of the raise; •elimination of sublevels; •cost reductions; •better structural characteristics of the opening; •labor reduction; and •noise abatement. The relative importance of each advantage varies from mine to mine. When analyzing the total economics of raising, each advantage must be considered. The factors having the most effect on economics are fixed costs, direct costs, and comparative savings versus conventional methods.

Jan 3, 1981

By James W. Clark

This paper is a description of certain geologic aspects of the Inspiration mining operation. It is not a geologic description of the Inspiration deposit nor an exposition of all the geologic work involved in the development and exploitation of the deposit. A few specific examples of the application of geology and geostatistics to the mining process are given to illustrate the progress that has been made in making the Inspiration Mine more efficient and cost effective, and a statement of the philosophy of geologic applications is offered.

Jan 1, 1984

By K. Yatsunami

NKK has developed a new cold bonded pellet process. The features of this process are; 1) it is a continuous process with 10 hours curing. 2) Products can be used as materials for various metallurgical furnaces. 3) Various kinds of slag are used as binders if necessary. 4) The quality of products is excellent. The pilot plant completed in 1981 is now being successfully operated. We are also constructing a commercial plant at our Niigata works. We produced cold pellets containing carbon as material for ferroalloys (Si-Mn), by pilot plant and used them in furnaces. Consequently, considerable economic advantages were obtained.

Jan 1, 1984

By M. Ramokhothoane, S. Rupprecht

"NTRODUCTION Women employment in the mining industry dates back to the 19th century. Various parts of the world, for example, India, Japan, the United Kingdom and the United States of America had women employed in large numbers. The women’s jobs were primarily manual in nature. Women were used to carry coal in buckets from the coal face and out the mine, and those who worked on the surface plants were used to sort waste rock from the coal product. Other heavy industries, which were traditionally male dominated, for example the military, also had a considerable number of women supporting the war effort. The outbreak of war also caused a shortage of labour, which in turn, necessitated that women were used in various roles during the war. After World War II, women returned to their traditional roles, but had acquired new skills, and had a different outlook to life. The wearing of pants and short hair became fashionable, as a result of being in the army.Various laws were passed which prevented the employment of women underground. Different countries had rules that they believed were in the best interest of women and were of the opinion that the rules somehow were protecting women against the harsh working conditions. In South Africa, post 1994, there has been a shift in thinking in regard to the employment of women in the mines. WOMEN IN SOUTH AFRICA MINING In the words of the Minister of Women in the Presidency, Minister Susan Shabangu, “women must take centre [sic] stage as the country gears itself for the implementation of radical socio-economic transformation policies and programmes in the next five years” (SA Government News Agency, 2014). In as much as some progress has been made in advancing women, more needs to be done in order to realize sustainable benefits in the economy. The emancipation of women is a reality and remains top of the South African government agenda. From the Authors’ experience there are two types of men in the mines. The first group support change and see the value in it. To them, women in mining bring in the diversity and play the complementary role in achieving greatness. There is no fear of job security and humiliation but a great sense of “camaraderie”. The other group continues to enforce stereotypes, which works against the spirit of redressing the imbalances of the past."

Jan 1, 2018

By T. W. Martin

In 1973 the percentage of total coal production mined by surface methods in the United States again increased, reflecting a long term trend. Barely three decades ago less than 10 percent of the U.S. coal was produced in this manner. Last year surface coal mines produced 299 million tons, 50.7 percent of our nation's coal. At present there are about 2450 strip mines producing coal in 23 states. While accident rates for surface coal mines are less than underground coal mining rates, surface coal mining is certainly one of the more hazardous occupations. Figure 1 shows the injury rates (fatal and non-fatal accidents) of major U.S. industries. Note that surface coal mining is more hazardous than all other industries except contract construction. Accident rates are about the same as the contract construction industry which uses similar equipment. A limited amount of detailed data was available on elements of surface coal mining jobs and this lack of compiled information made it difficult to assess the significance of the conditions contributing to accidents and to make recommendations that would reduce accident frequency. Therefore as part of the Bureau of Mines continuing research efforts related to the health and safety of the coal miner, a contract was awarded to Theodore Barry and Associates of Los Angeles to conduct an "Industrial Engineering Study of Hazards Associated with Surface Coal Mines."

Jan 1, 1974

By G. B. Amicucci

Golden Sunlight Mines Inc. operates an open-pit gold mine and cyanidation plant about 11km (7 miles) northeast of Whitehall, MT. Golden Sunlight is a subsidiary of Placer Dome US Inc. Mining is accomplished with conventional open pit drilling, blasting and hauling methods. The mining rate is about 102 kt/d (113,000 stpd). Gold occurs as fine-grained disseminations in a pipe-shaped breccia and in immediately adjacent country rock. The ore body is low grade, averaging 2 g/t (0.059 oz per st) of gold. The metallurgical plant uses conventional carbon-in-pulp (CIP) technology. Daily throughput averages 6.5 kt (7000 st). Recoveries are enhanced through a sand tailing retreatment facility while a preaeration process reduces operating costs. The low grade ore dictates that maximum mill throughput at the desired grind size be maintained. Therefore, in October 1988, an Armco Autometrics (now Denver Autometrics) particle size monitor (PSM) 400 was commissioned. The PSM 400 is an on-line instrument. It measures particle size and percent solids in a slurry stream. The PSM pulls its own sample, deareates the sample and passes it through diametrically opposed ultrasonic sensors. The unit uses ultrasonic sound to measure the deareated slurry stream's particle size and percent solids.

Jan 1, 1991

By George E. Edwards

Pacific Rim markets for export coal already represent a larger market than the total tonnage imported into the European Community countries and they will continue to expand. The largest importers will continue to be in the sector comprising Japan, Korea, Hong Kong and Tai- wan. It is likely that the total Pacific Rim markets will reach 206 m.t.p.a. by 1990 and 290 m.t.p.a. by 2000, with the major growth in steam coal demand. Australia has an efficient coal industry, represents a stable long term source of supply and is favourably situated geographically to continue to be the largest single supply source.

Jan 1, 1982

By C. Hilton

Arch Coal Inc. has implemented and sustained Best Practices at its four western mines through utilizing foremen in ongoing time studies. A prime benefit is the unique opportunity provided to front line supervisors. To date, 48 supervisors have participated in this program. Each quarter a new team is assembled with members from each operation. During three month blocks the supervisors conduct studies at each mine and identify best practices to implement at their own mine. Ongoing Best Practice and Action Item lists are reviewed each study. Mine management edits, prioritizes and monitors the completion of the proposed action items.

Jan 1, 2010

By Lynn B. Hales

There is a large economic opportunity associated with improving metallurgical performance in mineral processing plants that use process control. Thus, future control systems will be developed towards more sophisticated user friendly, computer-based systems that use powerful software analysis and control techniques. Auto-tuning, adaptive control and process models will gain expanded use because of their transparent availability to the system designer. Control of individual unit operations will be optimized and coordinated through expert systems that monitor economic conditions and management directives and direct operations accordingly. Plant areas, once considered cost centers, will be integrated into plant-wide control systems for economic control and optimization. This article looks at new control hardware, process sensors, control strategies and software development tools. It also looks at the economics driving the continued development of advanced process control systems. Process control systems routinely used in the mining industry were born when the microprocessor was invented. They have continued along an evolutionary path from vendor specific processing hardware and proprietary operating systems to computer industry standard "open architecture" systems. The many economic forces that drive the development and functionality of these process control systems will cause this evolutionary process to continue. Two of the broadest categories are the needs of the end users and the desire of the system manufacturers to distinguish their products from one another. More

Jan 1, 1994

By H. D. Brenk

"The German Federation of International Mining and Mineral Resources (FAB) is a federation of German companies that are active in international mining and mining related business. The FAB presents a platform for the exchange of information about the worldwide mining commodities in the dialogue with German and foreign institutions. The expertise of the member companies in mining and related activities is based on a long term operation and consulting experience in Germany and abroad. This forms the basis for the special international competitiveness "Made in Germany". The FAB is particularly engaged in the following topics and tasks and acts as a focal point for: • international project developments with the German mining industry, • sustainable mining, consulting and equipment services, • geological and environmental technologies, • project financing and • intermediation of contracts, project enquiries, professional symposia and events. The FAB acts as a contact- and coordination site for international business partners, organizations and governmental authorities. Together with the federal government the FAB organizes bilateral working group meetings in the commodity and mining sector. Project enquiries are being distributed from the FAB among their member companies."

Jan 1, 2011

By William H. Peterson

How is the Government's oil import control program doing? In July 1954 Mr, Eisenhower established the Cabinet Committee on Energy Supplies and Resources Policy. On July 29, 1957, the Administration imposed "voluntary" company oil import quotas on American oil importers to maintain "a healthy domestic (oil) production industry" and safeguard "national security." On March 10, 1959 the President by proclamation made the voluntary program mandatory. But study of the program in practice shows that it is not working out as expected and-that there is some doubt that its aims and other related Administration purposes are being achieved. Take the Administration's anti-inflation policy. To be sure, the President apparently recognized in his March 10th proclamation that in restricting cheap imported oil in favor of more expensive-domestic oil he was making the inflation fight that much harder, for he called for Government surveillance of domestic oil prices to prevent them from getting out of hard, And indeed while domestic crude oil prices have not risen appreciably during 1959 neither have they fallen appreciably (although there has been some price weakness in the past few weeks).

Jan 1, 1960

Man’s search beneath the earth for minerals has always required light, and the devices used to provide illumination have been both innovative and unusual —from stone vessels holding fat and a wick of grass or fiber to a shower of sparks produced by a thin steel disc. While the date when lamps were first used in mines is unknown, Greek and Roman records from 3000 BC definitely mention their use in underground mines. Early Remans most likely used a lamp similar to the one depicted at right. Over the ages, various types of devicives and methods of illumination have been tried and used. One interesting scheme for underground light was to reflect sunlight down the shaft and along drifts using mirrors or other reflective materials. Bunches of resinous wood were also used for underground lighting in many parts of England. In the mid-18th century, the speding mill was developed in England. It worked by rapidly turning a thin steel disc against a flint, causing a shower of sparks to appear. The light produced was uncertain, highly variable, and unsafe in gaseous environments. In Europe, an open pan-type hanging oil lamp was developed and used in some operations in the 1700s. This type of lamp had one opening for a wick and a second opening for refilling the oil reservoir. The lamps were embellished with goad luck charms – a good luck rooster was used in many parts of Europe while a frog and “gluck-auf” were used in Germany. These lamps were introduced in Mexican mines, and a few have found their way into the southwest US. By 1850, a small wick lamp known as the lard-oil lamp, which resembled a tea pot, was invented in Scotland. These lamps were fueled with grease from a packing house –lard, bacon grease, or tallow. Whale oil was also used. Many improvements were made on these lamps, such as the use of windshields and the attachment of miners’ candle-holdm to support the lamp. While these lamps were handy and inexpensive to operate, they were dangerous because their large flame could ignite support timbers or other flammable materials. Miners from the United Kingdom brought this type of lamp into the US. Domestic producers of oil wick lamps were primarily located in Hazleton, PA; What Cheer, IA; Pittsburgh, PA; and Frostburg, IN. The first patent for an oil wick lamp was granted to W. Seybold of McKeesport, PA. Incidentally, these lamps were advertised in a 1903 Sears-Roebuck catalog for 10 cents apiece. Oil wick

Jan 7, 1980

By R. R. Oder, R. E. Jamison, E. D. Brandner

This paper presents the preliminary test results obtained using a 0.38-kg/s (3,000-lb/hr) beta prototype MagMill. In processing Upper Freeport coal, the beta prototype recovered 82 % of the weight of the feed and 91 % of the heat content while reducing the potential emissions of sulfur by 61%. Pyritic sulfur in the MagMill product was reduced by 78% compared with that in the feed. For all runs, the mill product particle size was controlled to between 70% and 80% -741m (200 mesh). Recoveries of mercury, arsenic and selenium ranged from 35% to 45% of the amounts found in the feed. Power draw was reduced by 26%, and mill throughput was increased by 9% compared to the pulverizer operating with no magnetic separator attached.

Jan 1, 2002

By R. K. Simpson, C. S. Eldridge, M. H. Tyler, J. P. Hodgkison

The WMC Olympic Dam Operation in South Australia is an integrated site, involving brown fields exploration through to production of copper cathode, uranium oxide, gold and silver bullion. The Geology and Analytical Services (GAS) Department reflects this totality and, therefore, is perhaps a unique construct in the industry. It comprises Geology, the Metallurgical Laboratory and the Analytical Laboratory, offering a single point of contact in matters of metal discovery and tracking through mine design, production, beneficiation and final product certification. This structure promotes value adding by removing traditional barriers between groups that can deliver more, collectively, than as individual units. This approach to value adding by bringing disparate groups together is echoed in each of the three sections where enhancements in the traditional value adding activities have been delivered by multi-skilling and encouraging overlapping involvement.

Jan 1, 2002