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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 H. B. Hill

Virtually from the date of its discovery in December 1928 the Oklahoma City oil and gas field, Oklahoma County, Okla., has attracted national and international attention. The history of the field has been associated closely with rules and regulations pertaining to production control and proration practices. Early development was rapid, and Oklahoma City soon attained the distinction of being the first major field in which the producing wells were over a mile in depth. Before the structural features of the reservoir had been disclosed every outpost well was considered a "wildcat", so complex appeared the underground geology, The wells not only were deep and the reservoir pressures high, but the production from the early wells was a high A.P.I. gravity oil, accompanied by large volumes of gas. Several "blow-outs" and fired occurred during the early development, and the close proximity of these now unusual events to a large city gave the field much publicity, both local and national. Later, when its production threatened to demoralize the market for oil and its products, the Oklahoma City field again attracted wide publicity. The then little understood geology of the underground reservoir and the diversity of ownership of the land overlying the producing structure made orderly development and production difficult to enforce. Proration was enforced with difficulty., and the, rate of production from the field continued to increase until, on August 4, 1931, martial law was declared in all prorated fields of the State, and most of the wells in the Oklahoma City field wore shut n. On October 9, 1931, permission was granted t o reopen and prod e the wells in the Oklahoma City field. The order permitting production of the wells provided that during the period beginning October 10 and extending to October 20, 1931, all wells in the field that hid not produced more oil than specified under the earlier proration orders and that had been shut in for the required 55-day period were permitted to produce 5 percent of their last potential during that 10-day period. On November 7, 1931, the Corporation Commission of Oklahoma issued an order which divided the Oklahoma City field into the Wilcox, Arbuckle, and Lower Simpson zones for proration purposes. Wells producing from the Wilcox zone were allowed to produce 4 1/2 percent of their potential5/ from November 1, 1931, to January 1, 1932; Arbuckle limestone wells were allowed to produce 250 barrels of oil daily; and Simpson sandstone wells which had a potential of over 2,000 barrels per day or which made 3 percent or more water were allowed to produce 200 barrels of oil per day.

Jan 1, 1937

By Lyall Workman, Jack Eloranta

Blasting has an important impact on mining and milling well beyond the necessary ability to dig and load the ore efficiently. There is an increasing body of blasting research indicating significant impacts in crushing and grinding. These include increased production through higher output and fewer delays for bridging and jamming by oversize. In addition, fragmentation better suited to the crushing and grinding system is indicated to lead to reduce energy consumption by these activities, an important result in today’s environment. An important component of optimum fragmentation for this purpose appears to be micro-fracturing within individual fragments. This differs from fragmentation criteria for loading which focus mostly on fragment size. Therefore, one must analyze blasting broadly to obtain satisfactory results throughout the operation.

Jan 1, 2003

The acoustic signals emitted from a laboratory-scale ball mill were used for the estimation of the comminution of two complex sulphide ores, viz. Merensky and UG2 ores from the Bushveld Igneous Complex in South Africa. The digital acoustic signals were transformed to power spectral densities that could be related to particle size distributions (-75 µm to 4000 µm) in the mill by use of continuum regression. This approach is more general than principal component regression methods or Kalman filtering used previously and resulted in significantly more accurate calibration in the case of the Merensky ore, where approximately 93.4% of the variance in the particle size distributions could be explained. With fewer data available, the variance in the particle size distributions in the UG2ore could be explained less accurately (82.4%), but still satisfactorily. In addition, smaller particle sizes (less than 300 µm) could be modelled more accurately in the case of the UG2 ore.

Jan 1, 2000

By Alexander May

The Bureau of Mines conducted studies to determine if phosphogypsum, a waste material from the processing of phosphate rock, contains hazardous toxic materials as defined by the Environmental Protection Agency (EPA) and whether leaching of these toxic materials and radium may occur. Samples of the phosphogypsum stockpiled material were evaluated using the EPA extraction procedure, atomic absorption, neutron activation, x-ray diffraction, and chemical and physical means. Radiological tests performed used both the germanium-lithium and emanation methods. The data show that the phosphogypsum stockpiles are not hazardous toxic waste as defined by EPA criteria. Trace elements and radium are not leached from the phosphogypsum stockpiles. Absorption of trace elements and radium by phosphogypsum is the major reason for their not being leached. The standard error of measurement of radium concentrations was 4.7 pCi/g.

Jan 1, 1983

By E. Bakhtavar

All parameters influencing the decision for selection of a suitable extraction method were first selected as the base of this study. Then these parameters were categorized in two main groups. The first group of the parameters includes ?geomechanical and inherent characteristics of the dimension stones? such as hardness, RQD, compressive strength, joints plane orientation and spacing, and water content. The second group was named ?technical and economical parameters associated with the investor?s objectives? like for example extraction capacity (production rate), blocks recovery, mechanization, capital investment and operational costs. Finally, the influences of all mentioned parameters on the selection of the most applicable extraction methods have been assessed and discussed.

Jan 1, 2012

By G. W. Thomas

Jan 1, 1967

By Xiaowen Liu

The thermal decomposition of diaspore was investigated by thermogravimetry (TG),differential scanning calorimetry (DSC), X-ray power diffraction(XRD),infrared (IR)spectrain this paper. The thermal decomposition mechanism of diaspore was discussed according to Coat-Redfer equation. It was found that the decomposition of diaspore was carried out at 500?,and the peak temperature was 530?. The electrovalent balance of diaspore was destroyed. The previous crystal structure was changed. a- Al2O3 was obtained after thermal decomposition. The activation energy is 287KJ/mol.

Jan 1, 2006

By T. L. Muldoon

The bagging of dry pulverized products using fluidized air packers creates severe respirable dust problems in many surface mining operations. During bag filling, excess air and product blows by the bag valve/nozzle interface. After bag ejection, dust blows out of the bag valve. During conveying and handling dust is released from the bag valve and dirty bag surface. Overexposure of the bagging machine operator and bag handlers is common. This report describes the development and testing of a new dust control system for bagging machines. The system features a new bag clamp design to reduce product blowby during filling. A controlled vacuum system removes excess air from the bag before ejection, eliminating the problems after bag ejection and during conveying and handling. The system has shown significant reductions in dust exposure for both bag machine operators and bag handlers. These reductions are achieved with no significant effect on total mill productivity.

Jan 1, 1985

By J. R. Thoenen

[Before 1914 Germany held a virtual monopoly on the world supply of potash for fertilizer purposes. During the World War, potash shipments to the United States ceased, and recourse was had to domestic supplies. High war-tine prisms stimulated interest in various sources, and domestic production increased rapidly. At the close of the war, resumption of shipments from Germany mad other sources reduced prices to below pre-war levels, and, as a result, most of the domestic procedures ceased operations. This experience demonstrated that a domestic source of potash was necessary but that it must be of such a nature that it could compete in price with foreign sources. As a direct result the potash content of thick]

Jan 1, 1941

By M. H. Rogers

Coal has been at the forefront of mankind?s drive to improve his quality of life and also for sustainable development, from the Industrial Revolution onwards. The international coal industry today is large, with some 3,7 billion tons being produced and consumed in 1997. South Africa is an important participant in the coal industry, selling some 220 million tons in 1997 of which 64 million tons were exported. It is the second-largest thermal coal exporting country in the world. Despite the size of the world coal industry, it is not immune to change. The address examines growth projections for the industry and the change drivers that will impact on it in the future. Environmental pressures, the most important of which being the climate change debate, the Kyoto Protocol arising from this debate and the development of clean coal technologies, to reduce the impact of coal production and usage on the environment are considered. Other major change drivers considered are competition from other sources of energy and that between coal producers, the deregulation of the electric power industry, corporate restructuring and for the South African producer, legislative reform. The declining (real term) coal price, the consequent squeeze on margins and the need for producers to actively contain costs is covered. Technology has, in the past, been the driver behind the growth and change of the South African coal industry and its future role in ensuring that coal is the fuel of choice for continued improvement in standards of living and economic development is addressed.

Jan 1, 1999

Electrical trailing cable used to power coal mining machinery is frequently damaged in usage because of tensile strain or crushing effect of mining machines running over the cable. One of the repair problems is finding the exact location of a short or open in this cable so it may be spliced or otherwise repaired. The U.S. Bureau of Mines and FMC corporation signed Contract No. H0 122011 in August, 1971, to develop instrumentation for finding faults in coal mine trailing cable. This report describes performance of several existing instruments as trailing cable fault locators and also construction details and performance records of several cable fault location instruments that FMC designed, built and tested as part of this project.

Jan 1, 1973

By B. Law, M. Menabde, B. Baird

Blasor is a new mine planning tool which is being used in the long and medium-term optimization of multi-open-pit operations throughout BHP Billiton’s Base Metals and bulk commodities portfolio. It is not just a scheduler, nor even only a schedule optimizer—although this function lies at the heart of the tool’s functionality—but a pit development plan optimizer, used from ultimate pit design and process plant capacity sizing right through to mining phase design and optimal panel scheduling. The tool uses a mixed-integer-linear-programming optimization engine to determine when material should be excavated and where it should be sent to optimize discounted operating cash flow over the life of operation. The core software design concept of Blasor is to provide a tool which is intuitive and flexible enough so that a competent mine planner can perform a pit development plan optimization without assistance from optimization specialists. To this end, a generalized graphical user interface has been implemented which allows full configuration of the optimization problem, including the definition of all inputs and constraints, specification of the material flow topology, bin and destination class definitions and full specification of the economic model encompassing prices and costs. This paper describes the capability of Blasor and outlines the design concepts underlying its design philosophy.

Jan 1, 2007

By S. M. Bradshaw

The principles of microwave heating are discussed with reference to dielectric properties, heating phenomena and microwave equipment. Microwave regeneration of granular activated carbon for the carbon-in-pulp process is examined on a laboratory scale, with special attention being given to highlight the problem areas and specific considerations related to microwave heating. Results indicate that microwave regeneration of carbon with 40% moisture on a wet basis by heating to 650°C with steam addition regenerates the carbon to virgin carbon activity levels but with a higher abrasion resistance. A preliminary economic assessment showed that the capital cost for 120 kg/h microwave unit would be R540 000 with an annual operating cost of R 320/t carbon. These figures yield a return on investment of 12%. The aim of this paper is to provide an introduction to microwave heating and to illustrate its application to the microwave regeneration of granular activated carbon for the carbon-in-pulp (CIP) process.

Jan 1, 1998

By Richard Stayner

Suspended seats perform two functions: Reduce effect of occasional large bumps; Reduce more continuous vibration at a lower level. The former needs high damping. The latter needs low damping. For most mobile work machines the inevitable compromise is generally better than a simple cushion seat, because that amplifies vibration at around 4 Hz which is a sensitive frequency for human vertical WBV. Why have standard tests for seat suspensions? • Seat suspensions are non-linear so any measure of performance depends on operating conditions. For comparison these need to be defined. • Seat manufacturers need benchmarks for product development; • Machine makers choose dynamic characteristics appropriate to their products; • Occupational health specialists wish to control operator exposure to Standard tests should be representative, repeatable and reproducible. These requirements are reviewed in relation to the history of seat test standards and the current position. Current position and history The current position is that we have standard tests for seats for agricultural tractors, earthmoving machinery, industrial (fork-lift) trucks. These tests comprise measurement of vibration transmission and of the rate of damping. Current standards developed as the technology developed, starting around 1960: 1. Test on machine driven over standard surface1. 2. Test on shaker reproducing standard surface. 3. Shaker input replaced by representative spectrum2. 4. Human subject replaced by dynamic dummy. (Not yet settled). Are standard tests representative? The development process has gradually moved seat tests further from reality. 4 hr samples of work exposure suggest that seats do not on average provide large reductions of vertical WBV3. For specific magnitudes of vibration they can work well. For low vibration, performance is reduced by friction and for severe vibration by length of travel. Recent work has led to a new test to quantify how a suspension controls over-travel 9.

Jan 6, 2006

By J. Rivoirard

Historically, linear and lognormal krigings were first created to estimate the in situ mineral resources of blocks. Nonlinear geostatistics and indicator kriging were subsequently developed to evaluate also the portion recovered when applying a cut-off on selective mining units (SMUs) within blocks. In practice these methods are generally based either on the Gaussian model with a transformation generalizing the lognormal case or on the indicators above cut-offs. Very often the indicator approach is simplified by kriging separately each indicator, and when starting from a continuous variable, a practical advantage of the discretization into classes lies in the easy treatment of a zero effect and of the high values. However, a number of so-called isofactorial models have also been developed for a discrete or continuous variable, where the full cokriging of indicators (i.e. disjunctive kriging) simplifies to the separate kriging of factors. Moreover, these models are equipped with a change of support, allowing a consistent estimation of recoverable resources on SMUs. Min-Max Autocorrelation Factors (MAF) analysis of the indicators offers a new approach for indicator modelling. In particular the first factor, the one with the highest spatial continuity, can help in choosing the type of model. For example a monotonic experimental first factor can be used directly as the basis of a discrete diffusion model, unless a continuous diffusion model such as the Gaussian model can be used on the original variable. This approach is illustrated on a uranium deposit mined selectively: estimates of recoverable resources by discrete disjunctive kriging and uniform conditioning in a Gaussian model are compared locally to short-term estimates based on two areas densely drilled.

Jan 1, 2014

Knowledge of initial ground pressures or in-situ stresses and mechanical properties and geological conditions is of great importance in drivage and maintenance of a mine roadway. Field measurements of the in-situ stresses and the geological and mechanical properties have been carried out. However, these methods are really impractical in using in underground mines. Alternatively, back analysis method using measured displacements during drivage of roadway can be used. The paper presents discussion on some problems in applying inverse formulation of back analysis to a roadway driven in an in- homogeneous rock mass. The back analysis is formulated by 2-0 finite element method. The inverse procedure is carried out using a microcomputer, but for the multi-rock layer, a larger computer or a main-frame computer is used due to an iterative procedure.

Jan 1, 1990

Protect mine rescuers from heat-induced stress that drastically cuts their endurance and saps their strength. Approach To prevent exhaustion caused by thermal stress, a rescuer can wear a liquid-cooled hood and vest which absorbs heat, thereby reducing the heat-induced strain on the rescuer's heart and circulatory system. How It Works Liquid coolant is continuously circulated through a self-contained system in which the coolant is chilled by a heat sink on the wearer's belt. The coolant, which is a mixture of alcohol and water, is pumped from the heat sink to bladders inside the hood and vest where it absorbs body heat. After absorbing heat In the hood and vest areas, the coolant returns to the heat sink where it is rechilled by passing through a tube coiled around a steel can containing a block of ice. To adjust the temperature of coolant leaving the heat sink unit, a valve can be operated by the wearer, causing part of the flow to bypass the coil. A small pump and a rechargeable battery are also part of the assembly.

Jan 1, 1979

By D. R. Corson

The Bureau of Mines instrumented an operating stope in a deep vein mine to determine the amount of wall closure and the magnitude of loads imposed on a backfilled stope. Hydraulic pressure cells used to monitor pressures in the fill) with bolt closure points to measure vein-wall movement and the procedure for their installation) are described) and the results of the laboratory calibration analysis of the reliability of these cells are given. An attempt to monitor density and moisture changes in the backfill with a nuclear density-moisture device was only partly successful) owing to either deformation of access tubing or relative displacements of the vertical vein walls relative to the emplaced tubes. Data from the instrumentation indicate vein-wall closure in excess of 20 inches and pressures within the fill approaching 600 psi. Analysis) incorporating field data with results of laboratory tests of the compressibility of timber and tests defining the constrained moduli of the fill) points out the limited restraint to vein closure offered by timber sets. Ground movement induced by mining activity could be more effectively con-trolled by the use of densely compacted backfill.

Jan 1, 1967

Separation of Minerals Using Electrical Fields The mineral processing industry requires alternative separation techniques to help deal with rising energy costs and decreasing ore grades. Dielectrophoresis is one possible technology. It uses non-uniform electrical fields to separate particles on the basis of their permittivity. In order to determine its viability, the dielectrophoretic force was measured for individual chalcopyrite particles in ethanol. The measurements were made by attaching the individual particles to glass fibres and measuring how far they were deflected by a non-uniform electrical field. Six sizes of chalcopyrite particles were tested and the force was found to increase as a function of particle radius cubed. The particles were also positioned at different points in the field in order to determine the effect of the electrical field gradient. The force was found to increase with the inverse cube of the distance from the centre of the particle to the pin electrode. With the effect of these parameters fully characterised, the single particle test cell can be used to determine the permittivity of single particles of various composition.

Sep 13, 2010