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By George Mixter

MINING, in contrast to manufacturing, deals with a wasting asset. That which is taken out of the ground is gone, the property is depleted to that extent, and will eventually become exhausted of profitable ore. So the life of a mining company is dependent upon the ability of its management to develop improved methods to permit extraction at a profit of the lower-grade ores which remain, to extend by intelligent exploration the limits of its known ore bodies, and to find and acquire new properties to take the place of those that, for one reason or another, are no longer operated. Its history is a story of constant change, of the working out of properties here and the acquisition and development of properties there, to maintain the vitality of the whole. It is a story of estimating with the tools and the knowledge available the location and extent of hidden ore bodies and of devising the means of extracting

Jan 1, 1948

By Donald H. McLaughlin

ALTHOUGH Cerro de Pasco was well known since the early sixteen hundreds as one of the major silver districts of the Andes, its development on a modern scale did not occur until the first decade of the present century when a syndicate organized by James B. Haggin initiated the enterprise that eventually grew into the complex and widespread operations of the Cerro de Pasco Copper Corporation. Options on a few claims in Cerro de Pasco that had been brought to New York in 1900 came to the attention of A. W. McCune, a mining man from Salt Lake City, who took them to Haggin and soon succeeded in interesting that creative mining financier in the possibilities of the district. James MacFarlane, an engineer well known to both Haggin and McCune, was sent to Peru early in 1901 to make the initial examinations which promptly led to acquisition of a substantial group of claims in the heart of the mineralized area. A syndicate to which Haggin turned over his rights was organized on Feb. 26, 1902 to provide the necessary funds. The original members were J. B. Haggin, who retained a 34 per cent interest, Edward H. Clark (for Mrs. Phoebe Hearst, the widow of Haggin's old associate, George Hearst), H. McK. Twombly, H. C. Frick, D. O. Mills, and J.P. Morgan.

Jan 1, 1945

By Thomas T., Read

IT is difficult to judge how much influence the success attained during its first year, 1864-65, by the School of Mines at Columbia had on developments in education for the mineral industry elsewhere in the immediately subsequent years. The facts are as follows: 1. The Massachusetts Institute of Technology began giving instruction in February 1865, with a mining course included in its curriculum. 2. Early in 1865 the faculty of the Department of Science, Literature and the Arts of the University of Michigan requested permission from the Regents to establish "a course of study to be called the School of Mines . . . Also that the degree of Mining Engineering, be conferred on students who should complete the course of study prescribed in the same." A resolution authorizing this was adopted by the Regents on March 28, 1865. 3. Samuel Hooper endowed a Sturgis-Hooper professorship of geology at Harvard in 1865 with the intention of making it a nucleus of a new School of Practical Mining and Geology. 4. Yale appointed Alfred P. Rockwell professor of mining in 1865. 5. Lafayette College appointed Henry S. Osborn professor of mining and metallurgy in 1865. 6. Washington College (as Washington and Lee was then known), rising out of the ashes of Civil War destruction, made a fresh start in 1865, with Generalized as its president, and offered a mining course in the first catalogue thereafter published. 7. Lehigh University, founded in 1866, had a mining curriculum from its beginning. 8. Rensselaer Polytechnic began offering a curriculum in mining and metallurgical engineering in 1867. It would be natural to suppose that these events were a reaction, to the success of the school at Columbia, - and possibly they

Jan 1, 1941

By P. W. J. van Rensburg

Our mineral heritage - PRESIDENTIAL ADDRESS given by P. W. J. van Rensburg, Pr. Eng.. B.Sc. (Eng.)(Rand) INTRODUCTION Stone Age people were living in various parts of South Africa as recent,ly as a thousand years ago, when they were displaced by Iron Age people with a culture developed in the far north. These invaders brought farming, building, and the earliest mining developments to the Transvaal, thus ushering in the beginning of our great mineral heritage. It is of particular interest to record that, up to comparatively recent times, some of these people were excavating iron-bearing shale rocks for their smelting furnaces on the Melville Koppies in J ohannesburg. Although the most recent the iron-smelting furnaces discovered on these koppies is estimated to be some five-hundred years old, it believed that these Iron Age people were driven out, and their settlements destroyed, by Zulu impis only one-hundred-and-fifty years ago.

Jan 10, 1973

By Cornelius F. Kelley

AT the Annual Meeting of the A.1.M.E. last February, Cornelius F. Kelley, chairman of the Anaconda Copper Mining Co., was presented with the Charles F. Rand Memorial Medal for "conspicuous success as administrative head of great enter- prises engaged in the production of nonferrous metals at home and abroad; for inspiring leadership of an organization that has trained able engineers for service wherever ores are mined and metals are recovered; and for enhancing the prestige of metal mining in the financial and industrial world." Mr. Kelley's acceptance speech follows: I am not unmindful of the fact that the distinction is not to be considered a personal one, but that by the language of the citation itself it is rather a recognition of the service that has been performed by the many trained men of an industrial organization that in the arts of mining and metallurgy and in the fabrication of metal products has performed a distinct service to the industry and to mankind. In that spirit, the award is accepted, and on behalf of the organization I represent and myself, I thank you and assure you that the honor is deeply appreciated.

Jan 1, 1944

By MATT RENAUD, Mustafa Kumral

As high-quality mineral deposits are thoroughly exploited, mines of the future will have to move towards more remote and lower quality projects. With these projects comes an increased business risk to the operator. Even now, mining companies often turn to foreign countries for new deposits to produce, introducing the concept of country risk into their portfolio. Furthermore, feasibility studies often fail to accurately quantify the risks associated with various projects, and as such, this study proposes a technique of risk quantification which can both aid mining companies to evaluate the viability of investment and assist in risk disclosure to public investors for the mining industry of the future. This paper aims to quantify the effects of country risk on the valuation of potential mining projects, using a combination of modular and risk-weighting techniques to evaluate the country risk premium (CRP) required to obtain capital for operation of risky foreign mining projects. The techniques proposed in this paper are demonstrated using fictional examples and then evaluated for accuracy against a recently developed debt-funded precious metal project in a country in the Americas.

Sep 30, 2021

By MATT RENAUD, Mustafa Kumral

Mining corporations have spread their operations worldwide in the last few decades. The reason behind widening operations geographically can be seen as it being part of a risk diversification strategy. Given that the technical, financial and social risks are high, favorable deposits, taxation regimes and legislative frameworks create incentives for international mining operations. On the other hand, international mining activities add the risks of permitting, investing, operating and decommissioning to the corporations. These risks could emerge from defaulting, corruption, resource nationalism, social license to operate, and political and legislative uncertainties and instabilities.

By L. BENEDICT

COMMENTING on the report of the latest Royal Commission for India, the September, 1926, issue of the National City Bank's monthly letter states, among other things, that "The decision of the Royal Commission is against the proposal for a gold coinage, but in favor of placing the silver coins and paper currency now redeemable in silver on a gold basis." Also, it quotes the following from the Royal Commission's report: The essence of the proposal * * * * * is that the ordinary medium of circulation in India should remain as at present the currency note and the silver rupee, and that the stability of the currency in terms of gold should be secured by making the currency directly convertible into gold for all purposes, but the gold should not circulate as money. It must not circulate at first, and it need not circulate ever. In this connection it may be stated that during the last one hundred and fifty years or so unsuccessful attempts have been made by the governments of different nations of the world to devise a plan or plans by which gold and silver could be used concurrently for money purposes and, particularly, as standard money; such, for example, as bimetallism, which, of course, is impracticable. But, since none of such plans has been adopted generally it is logical to conclude that their proponents did not shape them so as to conform to the basic principle of standard money, or else political issues were deemed to be dominant, or, perhaps, it was partly due to each.

Jan 1, 1926

By C. W. Handy

ONE LAW cannot he evaded, the economic law of supply and demand. Silver, like any other commodity, is subject to this law; and its price in the long run is determined by existing conditions. I say "in the lone run because at times silver has appeared to mope contra to basic coalitions. Such movements, however, are, occasioned by the market's attempt to anticipate changes in these governing conditions. If the expected changes materialize then the new market level is justified, but if they do not then the market will revert to its previous status, A striking example of such a move occurred in November when the price advanced over 70, in ten days and then in the next two weeks lost more than it had gained. The reasons for this advance were that the speculative element interpreted certain events as favorable to silver namely, England suspension of the gold standard, higher shat prices, and the Chinese-Japanese crisis. When these expectations proved unjustified the inevitably, elapse followed became the governing conditions had not channel.

Jan 1, 1932

By Maureen E. Lipkewich

Education builds long term awareness, acceptance and support for responsible mineral resource development. The MABC Education Program is an award winning education partnership with British Columbia classroom teachers that has helped over 5400 teachers with resources and other learning opportunities. Each year, thousands of students begin, and continue, to learn about our modern mineral industry as a result of this teacher-written program. The CIM network has an integral role in the future of mineral education in today?s classrooms in Canada and programs of this caliber are vital to our future. The industry needs help in raising awareness of the benefits of modern mining and teachers need help in acquiring that information.

May 1, 2002

By J. R. Walls

The United States potash industry had its beginning in the early Colonial days. Potash was initially manufactured by leaching of hardwood ashes in large iron pots. Production of potash was recorded as early as 1631 in New Hampshire, and in Maine a few years later. According to the census of 1850, the production of potash was America's most thriving chemical industry and, at that time, 569 plants were reported producing potash from wood ashes. Interest in potash was so great prior to the 1800's that the very first United States patent, signed by George Washing- ton, was granted for the production of potash on July 31, 1790. A new era for the production of potash began when potash was discovered by the analysis from a brine well in 1839 near Stassfurt, Germany while exploring for salt. The predominant use of potash at that time was in the chemical industry rather than agriculture. The discovery, by Justice von Liebig in about 1858, that potash salt contributed greatly to the essential plant food in soil opened up an enormous potential market for a suitable potash material.

Jan 1, 1985

By Richard H. Lindgren

I appreciate this opportunity to discuss with you OPIC's new policies designed to assist U.S. minerals companies in developing new sources of minerals overseas. A comparison of recent figures on U.S. investment in mineral exploration, development and production gives results which are remarkable --and disturbing. Through the 1960's the flow of U.S. foreign direct investment in mining and smelting in the developed and less developed countries were nearly equal. However, by 1973, roughly 80% of all exploration expenditures by mining companies was taking place in the developed countries and principally in the U.S., Canada and Australia. Clearly it is to the interests of both the developing countries and the United States to put these figures back in better balance. As you may be aware, the administration as a whole is examining systematically what can be done by government to reduce the disincentives and increase the incentives to mineral investment in the less developed countries --the LDCs. A subgroup of the National Advisory Council chaired by the Treasury Department has been formed to coordinate U. S. Government policy and program efforts relating to mineral and energy development in these countries. Among other matters, this subgroup will examine how public policies could positively influence the private investment decision-making process in the minerals industry.

Jan 1, 1978

By B. Weaver

Every year Pit & Quarry Magazine surveys the industry to produce their annual review. Here's a sampling of some of the statistics the survey produced from the end of the year 1994 survey.

Jan 1, 1995

By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985

By Reynold Q. Shotts

Data are presented which show that fractions of varying densities-from the same coals are oxidized at different rates by nitric acid. From oxidation data, the approximate quantity of "bright" and "dull" components may be calculated. Definite relationships between oxidation rate and rank are shown for density fractions from at least two bituminous coals.

Jan 1, 1950

P.T. Freeport Indonesia's latest expansion has increased total mill throughput to 125,000 dry metric tonnes per day. The most recent expansion included the installation of a Semi Autogenous Mill designed to treat more ore than any other single SAG mill currently operating in the world. Also included in the expansion were two large ball mills, rougher and cleaner flotation including conventional and column cells and a regrind circuit. All equipment is supported by a modem distributed control system. This paper describes the design considerations, construction, commissioning and start-up of the SAG concentrator and support facilities and includes an overview of the oreflow and milling facilities.

Jan 1, 1996

By V. R. Degner

Comments Summary It is very interesting to review the technical changes which have occurred in the industrial practice of minerals flotation over the past two decades. In 1972, worldwide industrial flotation was dominated by 'mechanical' flotation machines having an individual cell volume less than 500 cu.ft. Manufactures, such as DENVER Eqpt. Co., OUTOKUMPU, WEMCO, GALIGHER (AGITAIR), AKKER, and later DORR-OLIVER, produced flotation machines featuring a mechanical rotating impeller which served to mix pulp and air, prior to flotation, and to keep the solid ore particles in suspension. While sharing this common mechanical impeller feature, the machine design of the various manufactures differed in detail; particularly in regard to the vertical location of the impeller in the cell and the means by which flotation air was brought into contact with the pulp within the rotor mechanism. A review of the existing technical literature in 1972 would identify academic research studies, particularly at Columbia University (N. Arbiter, C, Harris ...) aimed at comparing flotation cell design concepts, of the various machine manufactures, on a hydrodynamic basis. These research studies were confined to very small, laboratory bench size, flotation machines, and the benefits of incorporating hydrodynamic considerations in the scale-up of the existing 300 cu.ft. mechanical flotation technology to larger cells was not commonly practiced industrially. Technological advances in minerals flotation, over the past two decades, have been influenced by a variety of economic factors including the increasing development of lower grade ore bodies, the attractions of producing a higher grade final concentrate, and the economy of tails retreatment to improve overall plant recovery performance, and flotation system “optimization" became increasingly important through the 1970-80 time period. The trend toward processing lower grade ores led to higher tonnage mill operations, and stimulated the development of the very large capacity mechanical flotation machine for roughing and scavenging duty. In 1972, the 500 cu.ft. size flotation machine was being pilot tested and introduced to the industrial market. Today, 1993, individual cell volumes of 1500-3000 cu.ft. are operating successfully throughout the world, and well planned plant test programs have concluded that the very large flotation machine can achieve the same metallurgical performance level of its smaller predecessor. The large flotation machine development record clearly credits the incorporation of internal cell hydrodynamic considerations in guiding the scale-up of the mechanical flotation machine to large sizes. This guidance eliminated, or reduced significantly, costly in-plant prototype machine changes which increase Dramatically with increasing flotation machine size. Early in the 1980's, at approximately the time that flotation machines in the 1500 cu.ft. class were being introduced into the market, it became evident that the availability of the very large mechanical flotation machine brought with it the need for a systematic means to "optimize" the flotation system by relating flotation cell size, row length (i.e. number of cells per row), and flotation rougher, scavenger, and cleaner system configuration to the economic objectives of the concentrators' operating management. Flotation system optimization consists of quantifying the flotation process performance using a suitable model which relates the kinetic response of the trace specie and the gangue material to the cell overflow, and produces a numerical relationship between product grade and value recovery. The computer analysis technique has proven to be an invaluable tool in determining the kinetic model coefficients which characterize a given application, and is also used to apply the resulting model to a proposed minerals beneficiation situation seeking to "optimize" the flotation system by relating metallurgical grade-recovery performance, flotation cell size, and circuit arrangement, to plant space, installation, and operating costs. It is interesting to note that these same computer based kinetic flotation analysis techniques can be easily applied to quantitatively evaluate the effect of different chemical reagent strategies, and flotation air transfer, on process performance for a variety of candidate feed ore types.

Jan 1, 1993

The subject of my paper is one which, I am certain, has exercised the mind of every man on whom depends the safe and economical conduct of mining operations; particularly in this district where the enormous size of the ore body has necessitated the mine workings assuming a scale that was hitherto unknown in the history of Australian mining. I, therefore, approach the subject with the feeling that I am displaying considerable t.emerity, knowing as I do that the subject has engaged the earnest attention and thought of everybody immediately concerned in the extraction of the ore of this district, and particularly of the Broken Hill lode.I think I shall not be contradicted in asserting that a very large proportion of eur accidents are distinctly traiceable to inexperience on the part of the miner, and records at the mines and verdicts of coroners' juries in many instances uphold this assertion by showing that the accident under notice was the direct result of lack of knowledge of the conditions of the work, or, at any rate, of an error of judgment hardly conceivable in the experienced miner. That this assertion is correct may also be proved by visiting any of the mines of the district.To the experienced eye it will be evident at once that a very large number are not in way skilful in the use of their tools and, therefore, lack the experience which of necessity must be coincident with the acquirement of skill. Now in making this' assertion, I do not intend to be too sweeping...

Jan 1, 1903

THOSE who dabble in m.ining are no exception to the general rule that persons who know a little of a subject are apt to think that they know all about it. Some colour may be lent to the belief that anyone may succeed in mining when we hear stories ofsuccessful diggers and others who have accidentally dropped on to something good through no foresight on their part; but we seldom hear the contra account of the far larger number who fail. Those who go more thoroughly into the subject, and take up mining as a profession, know very well that it is not one that can be carried out successfully by rule of thumb, but when they point this out to the public they are credited with trying to make it a closed profession; and outsiders are for ever trying to find out the 'trade secrets,' at the same time spurning the main one, which is hard study, experience, and the ability to apply their knowledge.The average mining man is not rich. When he amasses a fortune it is generally through speculation rather than professional work, thought no doubt his technical knowledge may have assisted him. However, making a fortune and running a mine are twodifferent things.

Jan 1, 1911

By C. E. Shoenfelt

There were 110 important discoveries of either oil or gas in Co1orado in 1935. There was, however, further development of the Price structure in southern Colorado and developments since the first of the year indicate. that an important oil field may be in the making. The discovery of oil in Price structure was made by the Oil City Petroleum Co. late ill Novem-ber, 1934, in its No. 2 Garnett in the northeast corner of lot 3 in the SW.¼ of sec. 25-33N.-2E. This well developed a good showing of oil in Dakota sand at 970 ft. The hole filled up 15 ft. with 40° gravity oil overnight and after standing for several days the oil level was 400 ft. higher. As a result of the discovery of oil by the No. 2 Garnett, three wells were drilled by the William E. Hughes Estate. Two of these wells had good showings of oil and may make good producers but it is doubtful whether they will produce the estimated capacity of 500 bbl. each with which they have been credited. Although the Hughes Estate wells have been completed for some time, they have not been given thorough production tests because of the isolated position of the field and lack of proper facilities. The. first well drilled by the Hughes Estate was located on the west side of the Navajo River on the downthrow side of a fault. It encoun-tered water ill the Dakota sand at 1285 ft, and was abandoned in green shales of the Morrison at 1405 ft. Well cuttings from the Dakota sand showed some evidence of once containing oil, so a 1ocation was selected for No. 2 Fee on the east side of the river and on the upthrow side of the fault. Oil was discovered in Dakota sands ill 1935 by Continental Oil Co. in its No. 3 Hoye, NW.NW.NE. of sec. 34-9N.-78W., on the South McCallum anticline in North Park, Jackson County, Colo., but on account of heavy flows of carbon dioxide gas under high pressure it has been impossible for the company to get an accurate gage of the oil production. The freezing action of expanding carbon dioxide makes the producing of the oil difficult and costly.

Jan 1, 1936