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By R. M. Douthwaite, G. Birkbeck

The effect of grain size and specimen dimensions on the occurrence and magnitude of a yield point drop in pure iron has been examined. The tests were done at room temperature. The results indicate that gain size is the critical factor determining whether a yield drop occurs. The specimen diameter:gain size ratio does not influence the magnitude of the yield drop for the range of gain size and specimen diameters investigated. HUTCHINSON,' petchY2 and worthington3 have investigated the grain size dependence of the upper yield stress (uUYP) and the yield point drop, ouyp - aLYP, in Armco iron, mild steel, and Si-Fe, respectively. These authors used center-annealed wires to avoid stress concentration from specimen shoulders and to ensure uniformity of the applied stress. Coarsegrained specimens show no yield point drop; the yield point drop then increases as d-'I2 increases (where d is the grain diameter). These results can be understood in terms of Petch's analysis2 in which the magnitude of amp depends on the strain rate in the (limited) number of grains deforming plastically at the upper yield point. If N grains per unit volume are undergoing plastic deformation, the strain rate in the deforming grains is l/Nd3 times higher at the upper yield stress than when the whole specimen deforms homogeneously. If N is constant and independent of grain size at uUyp, then all the grains are deforming when ~d~ = 1, so there is no yield point drop. At finer grain sizes, the yield point drop is given by: where AU, is the friction stress increase corresponding to a tenfold strain rate increase. Christ, Smith, and Burton studied the upper yield point in 0.050-in.-diam wire specimens prepared from zone-refined iron. Each end of the 2; -in. specimens was soldered to a & -in. diam steel ball and the load applied through the two balls. There was a yield point drop in specimens with grain diameters less than 0.1 mm; no drop was observed in specimens of grain diameter greater than 0.1 mm that were free from veining substructure, but specimens of grain diameter 0.129 mm, annealed in the y range, showed an upper yield point. and this was associated with the presence of a veining substructure in these specimens. Christ et al. suggested the upper yield point occurs when more than a specific number of grains fill the specimen cross section so a multiplicity of slip is required to initiate plastic deformation. Table I summarizes the published data on the grain size at which the yield drop disappears. On the basis of this data the ratio of specimen diameter:grain diameter = 5 to 27 appears to be the critical value for the occurrence of a yield point drop. Thus, petch2 interprets the appearance and magnitude of the yield point drop in terms of the limited number of grains deforming plastically at uuyp, whereas Christ et a1. consider that the occurrence of the yield drop depends on the ratio specimen diame-ter:grain diameter. The published data cover a wide variety of materials so some variation between the results is to be expected, but the size range covered in the data of Table I is rather limited. In an attempt to discover whether the specimen diameter:grain size ratio or the grain diameter is critical in determining

Jan 1, 1969

By Joseph E Pogue

Over a period of years the writer has presented a number of studies1 on various aspects of proration, in a progressive attempt to analyze critically and constructively the economic complexities of this interesting institution, which in a decade has revolutionized the economics of oil production in the United States. In the course of the investigations leading to these papers, the changing nature of proration and the principles underlying its evolution have gradually become clear, so that it is now possible to depart from the analytical method and to construct a synthesis of the steps that, if furthered by the industry, should carry proration past the economic hazards that still surround it to the goal of maximizing the value of the petroleum resource to the industry and the public alike. Nature of Proration Proration literally means the allocation of demand among competing producers on a pro rata basis, but the term now carries a much broader significance for it is employed to describe the entire process by which the production of crude oil in the United States is regulated. There is naturally much confusion of thought on the subject, for proration is an evolving system of control based upon principles of conservation and equity and embracing a body of practices that are tending to adjust themselves to the needs of the situation but are subjected to varying and divergent influences in the process. As it is now constituted, proration is a planned production measure designed to prevent waste, insure ratable takings, and balance supply and demand. The procedure is administered by State regulatory bodies through use of the police power of the States under authority of State conservation laws; the practice is supported by a considerable degree of voluntary conformance on the part of operators; and the Federal Government has accorded its cooperation by providing advisory quotas, circumscribing imports, checking movements of hot

Jan 1, 1939

By Joseph E. Pogue

Over a period of years the writer has presented a number of studies1 on various aspects of proration, in a progressive attempt to analyze critically and constructively the economic complexities of this interesting institution, which in a decade has revolutionized the economics of oil production in the United States. In the course of the investigations leading to these papers, the changing nature of proration and the principles underlying its evolution have gradually become clear, so that it is now possible to depart from the analytical method and to construct a synthesis of the steps that, if furthered by the industry, should carry proration past the economic hazards that still surround it to the goal of maximizing the value of the petroleum resource to the industry and the public alike. Nature of Proration Proration literally means the allocation of demand among competing producers on a pro rata basis, but the term now carries a much broader significance for it is employed to describe the entire process by which the production of crude oil in the United States is regulated. There is naturally much confusion of thought on the subject, for proration is an evolving system of control based upon principles of conservation and equity and embracing a body of practices that are tending to adjust themselves to the needs of the situation but are subjected to varying and divergent influences in the process. As it is now constituted, proration is a planned production measure designed to prevent waste, insure ratable takings, and balance supply and demand. The procedure is administered by State regulatory bodies through use of the police power of the States under authority of State conservation laws; the practice is supported by a considerable degree of voluntary conformance on the part of operators; and the Federal Government has accorded its cooperation by providing advisory quotas, circumscribing imports, checking movements of hot

Jan 1, 1939

By Koert D. Burnham, John G. Broughton

WOLLASTONITE in Essex County, New York, occurs as a typical contact mineral in a series of rocks metamorphosed by anorthosite. Sole current use is in various types of electric welding fluxes. Its uniform lathlike shape suggests its use as a specialized filler.

Jan 1, 1944

By G. R. Lehman

The Inspiration Consolidated Copper Co. had an orebody at Miami, Ariz., of close to 100,000,000 tons of low-grade copper ore, and the method of mining this ore most profitably was of great importance. The selection of a method was practically limited to a "top-slicing," a "shrinkage-stope" or a "caving" method. The "top-slicing" method would give a high extraction of the developed ore, at a high mining cost, and the "shrinkage-stope" or "caving" methods a lower extraction of the developed ore, at a lower mining cost. Ore-Drawing Tests To decide on the method to be used it was necessary to know about what extraction of the ore could be obtained by the "shrinkage-stope" or " caving " methods. As no definite information regarding the,question was available at the time, C. E. Mills, the general manager, thought that some information could be obtained by experimenting in drawing ore, covered with capping, from an experimental box. Some work had already been done along these lines by W. C. Browning for the Inspiration Copper Co. and by myself for the Live Oak Development Co. The idea was to represent as nearly as possible, in the experimental box, the conditions within an area of caved stopes of caved ore all ready for drawing. That is, the area was supposed to represent a semibroken mass with the capping above it in the same condition and ready to follow the ore downward as it was drawn out of the chutes under the ore. To represent the above condition, in the experimental box, crushed ore from the mine was placed in it to a given height, and red barren capping from the mine was placed on top of the ore. The Experimental Box The experimental box shown in Fig. 1 was made of wood and glass. The glass was used for the sides so that the drawing action of the outside row of chutes could be seen and noted, the latter being cut in the center by the glass sides. The length of the box was 30 in., width 20 in. and the

Jan 1, 1917

By B. M. Blake, R. S. Reppert, A. F. Keiser, E. J. Trinkle

The southern West Virginia coalfield was formed in a rapidly subsiding depositional basin associated with deep-seated growth faults. Subsidence began to the southeast during deposition of the Pocahontas Formation, and then shifted to the northwest during deposition of the New River, Kanawha, and Allegheny Formations. Rocks of all the coal-bearing formations grade into massive sandstones to the northwest. For the No. 3 Pocahontas, Sewell, Campbells Creek, and No. 5 Block coals discussed in this study, the overall sulfur and ash values of each coal seam increase gradually toward the northwest. The thickness of each coal tends to increase toward the southeast. These trends are partly a reflection of the differential subsidence of the coal basin along with varying degrees of peat accumulation and degradation. The northwest side of the coal swamps underwent relatively less subsidence and, thus, more degradation due to increased aerial exposure, with a resulting increase in the sulfur and ash values of the coals, and a decrease in the thickness. The open sea existed to the west of the coal swamps, and this marine environment also contributed to the higher sulfur values to the northwest. Coals of the Pottsville Group in the southern West Virginia coalfield generally have sulfur values between 0.6-1.0% with some as high as 2-3% on the northwest edge of the coal basin.

Jan 1, 1983

By K. J. McGrew, J. W. Murphy

Introduction Maximization of profit consistent with environmental protection is the principal goal of new applications development for any conventional or in situ mining technique. Efficient evaluation of all the parameters that contribute to mining costs and production hinges on proper design and evaluation of testing programs and data. The program discussed uses several field and laboratory procedures to estimate ore deposit characteristics and optimize lixiviant compositions. Ore characteristics and lixiviant compositions are then used in a long path leaching test (stream tube test). Stream tube test data are analyzed by mathematical models with computer assistance to predict such wellfield rate parameters as target metal production, lixiviant consumption, and restoration. When these predicted rates are combined with market values for target metals, capital expenditures, prices of lixiviant chemicals, and other economic variables (labor costs, power rates, and licensing fees), an assessment of the relative feasibility of various proposed mining plans is possible. The flowsheet in Fig. 1 illustrates this process. [ ] Field and Laboratory Procedures In general terms, the procedures followed in the evaluation of an in situ leaching application aim at accomplishing: •rapid leaching and maximum recovery of the target metal in a marketable form, •low consumption of lixiviant chemicals, •unquestionably satisfactory restoration of the mined aquifer, and •minimization of capital and operating costs for the above through development of an optimum mine plan. Keeping these goals in mind, the following minimum test program is generally recommended. Geology •Estimate of ore reserves and their variability. •Average disequilibrium value for uranium deposits. •Ore thickness, depth to ore, water level, degree of confinement, and consolidation. •Characterization of quality and quantity of other ore deposit constituents (e.g. sulfide minerals, ion exchange parameters). Hydrology •Single well pump and injectivity test. •Downhole vertical permeability test to compare flow rates of barren and mineralized formations. •Groundwater quality as it may affect licensing, hydro metallurgy, and restoration. Hydrometallurgy • Flask or autoclave tests for optimization of lixiviant parameters and determination of specific reaction rate constants. • Flask or autoclave tests for assessing amenability of lixiviant solutions with ore, consumption of lixiviant, stability of metal in solution contacting ore, and environmentally important species mobilized. • A long-path leach test for modeling the behavior of the lixiviant solution flowing through a long mineralized streamline (stream tube testing). •Metal recovery tests from lixiviant solutions (ion exchange, electrowinning, etc.). •Lixiviant regeneration tests. •Environmental restoration tests.

Jan 1, 1985

By T. E. Godson

AS this is the age of reform, a uniform mining law for North America is a moot subject for discussion at this meeting of the Institute. The question is one of peculiarly technical and, in many respects, local character. We all appreciate the value of the metal-producing industries and recognize the necessity and importance of a well-considered and evenly balanced mining law as a branch of our jurisprudence either for the Provinces or the Dominion as a whole. Mining has taken its place as a forempst industry and legislation that seeks to control and govern it is the concern of not only the active miner but the citizens of the state. A law that, through its charitable measures brings into being the prospector, the pathfinder and superstructure of all mining activity and industry! protects his interests, safeguards invested capital, and encourages and enforces development, possesses at least the salient requirements of a businesslike Act. The manner of doing so is, I think, one of local and internal concern. May I be permitted to say without presumption that of the five mining codes, or Acts, that we have in the Dominion of Canada born and bred within the Provinces of British Columbia, Ontario, Quebec, New Brunswick, and Nova Scotia, some of them could be materially improved. In many respects they do not measure up to the times; they were no -doubt creations of merit at the date of their .birth but they have not been clothed in seasonable raiment as the years passed by. It is a stern fundamental principle that all natural resources are the inalienable property of the crown. If it is mineral land, then it follows for the protection of the state and the direct advancement of the occupant that the land should be developed as such. The method or machincry by which this must be accomplished is a matter of detail, not of principle. If the right to possession as a licensee depends on discovery, it is not inconsistent with the duty the crown owes to the state that a grant in fee should pass to the discoverer if there is imposed, after patent issues, a requirement of continuous work or the alternative of an acreage tax sufficiently burdensome to make it unprofitable that the land should be held in an undeveloped state. If this requirement is recognized, the mental distinction between a grant and lease ceases to exist. A

Jan 1, 1920

By Philip D. Shelton

INTRODUCTION Traditional design of support for permanent underground mine excavations place great emphasis on the magnitude of the maximum radial load which a specific support or lining must sustain. However, this depends upon so many factors that reliable prediction in advance of excavation is very difficult except in strong-self supporting ground. Some of the factors affecting the loads acting on a support are illustrated in Table 1. [ ]

Jan 1, 1984

By H. I-Lieh Huang, O. D. Sherby, J. E. Dorn

RECENT investigations1-4 have suggested that the total plastic strain, C, for high temperature creep under a given stress can be correlated by means of a temperature-compensated time, te- where t is the duration of test, e is the base of natural logarithms, aH is the activation energy for creep, R is the gas constant, and T is the absolute temperature. A typical set of data on which this deduction was based is given in Fig. la. Inasmuch as the e-in t curves for the various temperatures are identical except for their displacement along the In t axis where f and are appropriate functions. If the increase in creep rate with an increase in temperature is exclusively ascribable to a single process involv- ing thermal activation, (T) should equal RT and therefore it = constant [2] where ?= te Assuming the validity of this relationship, ? = ?2 at the same strain, or where the subscripts refer to two alternate test conditions.

Jan 1, 1957

By G. F. Comstock

In the literature of metallography there is a large amount of material describing the various non-metallic inclusions found in iron and steel, and the appearance of sulfides, silicates, oxides, or alumina in steel under the microscope is fairly well known. The inclusions found in non-ferrous metals are, however, not so well known, at least judging from published writings, and the author has been interested in examining small castings of copper, brass, or bronze with certain inclusions purposely mixed with the metal, to see what was the characteristic appearance of each kind of inclusion, and if they could be readily distinguished from one another. The method employed in most cases consisted in overheating and oxidizing a small charge of copper, then cooling it somewhat, and adding a suitable amount of the element whose oxide it was desired to observe. This element was stirred in well and given time to react with the oxygen in the copper, then the melt was poured in a sand mold in the form of a cylinder about 21/2 in. (63 mm.) in each dimension, with a sprue about 11/2 in. (38 mm.) in diameter and 3 in. (76 mm.) high on top of the cylinder, the sprue forming the only riser. Samples for examination were cut sometimes from the center of the casting, and sometimes from the sprue or riser. A few of these samples were cast in chill molds. The appearance of sulfides was studied in an alloy containing 10 per cent, each of tin and lead, with which a flux of plaster of Paris was used. The appearance of foundry sand was studied in several alloys, one of them having sand stirred into the metal intentionally, and others having cut into the molds badly when poured, so that the castings were spoiled by included sand. As all this work was done on alloys having copper as the chief ingredient, the natural starting point was copper oxide, the appearance of which in a micro-section is well known. Cuprous oxide is soluble in molten copper, but separates out in freezing and forms a eutectic containing 3.5 per cent. Cu20, or 0.39 per cent. oxygen. If there is less

Jan 1, 1919

By Shawn T. Sorrell, Carl Hrovatic

Original by Carl Hrovatic and Shawn T. Sorrell Revised by Carl Hrovatic Land is a precious resource and should be treated as such by all members of our society. The soil covering this earth is only a very thin outer layer, varying in thickness from a few inches to a few feet and covering the rocks and minerals lying beneath the surface. The wise use of this valuable commodity is the responsibility of everyone. Many everyday activities disturb the earth's surface. Examples are highway construction, housing and commercial developments, agriculture, and various types of mining. This chapter discusses the relationships of the environment to land as it applies to surface operations in the coal industry. Mining by surface methods disturbs, for a brief period of time, thousands of acres of land annually. In addition, refuse piles, slurry ponds, abandoned mine structures, unprotected mine openings, and unsightly cleaning plants can also adversely affect land unless properly handled. ACTIVE SURFACE MINING OPERATIONS Mining by surface methods includes rock quarries; sand and gravel pits; huge open pits to extract iron, copper, phosphate, and other ores; and coal mining. Production of coal by surface methods is now approaching 408.2 Mt/a (450 million stpy), amounting to almost 60% of the total coal output. Surface coal mining can be classified into the following five broad categories : Open-pit mining is practiced where coalbeds are extremely thick, as in some western states, or where coalbeds are sharply pitching, as in the anthracite region of the eastern United States. A typical open-pit mine, with coalbeds of 3.05 to 30.5 m (10 to 100 ft) or more thickness and a

Jan 1, 1981

THE discussion of this topic at the Open-hearth Conference at Detroit on Nov. 3, 1927, was opened by statements of the general principles involved, made by manufacturers of molds. Because of their general interest they are printed below. WILLIAM HAIL RAMAGE,* Hubbard, Ohio.-I did not come prepared to read a paper, thinking. the most I would be called upon to do would be to make a few, remarks by way of discussion. A number of our friends have pre-viously asked questions. similar to this which really does not permit a direct "yes" or "no" answer. If I may he pardoned for so doing, I believe it advisable to discuss rather what we consider the principal factors which in-fluence mold life. I think possibly a little undue weight has been given to the subject of the analysis of the metal. For the last eight years we have spent a lot of time, effort, and money investigating this very problem from a chemical, physical and microscopic standpoint. We have had the benefit of complete records and history of over 100,000 molds in service at a variety of plants and over long periods of time. Obviously, I cannot be so specific that I should divulge information that is really a trade secret. In our opinion the principal factors influencing mold life are: (1) design of the mold; (2) process of manu-facture, including workmanship; (3) care in the steel plant or what might be termed "the use or abuse" in the steel plant; (4) the analysis of the iron and the physical con-dition of it. Under normal conditions these factors are of importance in the order named, although in specific cases they might be rearranged in any order you choose. For instance, the best mold made can be destroyed in one or two pours by subjecting it to certain conditions which are occasion-ally met in steel plant practice. Obviously, in that case, nothing else matters but that one item. On the other hand, I have seen molds made of such a terrible design that it was a foregone conclusion it would have to be broken after the second pour of the ingot to get it out. In that case, nothing but design mattered. As to the effect of process of manufacture, let me cite a case. Some years ago there were two batches of molds sent to a certain company. They were the same sized molds, used under the same conditions and in the same kind of service. There were, 20 molds in each batch. The second batch sent gave ten times the life of the first batch. It is true that the design was changed a little, but not very much, and it was not. a bad mold to begin with. It is possible that the iron may have been better in the second consignment but not very much. In my opinion, it is con-servative to say that of the 900 per cent improvement in life, 5 per cent was probably due to better iron, 25 per cent to better design and the remaining 870 per cent to process of manufacture and workmanship.

Jan 2, 1928

By Peter F. Weiss

INTRODUCTION Austro-American Magnesite Co. of Radenthein, Carinthia, Austria, is a wholly owned subsidiary of General Refractories Company, Bala Cynwyd, USA, and has been incorporated since 1908. The raw material basis is the magnesite mine on Millstatt Alp, located in the mountains near Radenthein at an altitude of 1500 m above sea level. The mined crude magnesite is crushed in a surface crushing plant to minus 35 mm and consequently hauled to the processing plant in the valley by means of a cable conveyor of 7.5 km length. The annual production of 350,000 mt is accomplished with 20 supervisors and 122 workers (of those 60 are in the mine). The labor requirement for block caving is 0.2 man hr/mt, corresponding to an output of 40 mt/man/ shift. GEOLOGY The rock in this area mainly consists of crystalline type schist. There are mostly coarse crystalline garnet mica schists with varying mineral concentrations, and to a lesser degree, some deposits of amphibolite and marble. This petrographically rather homogeneous rock is divided into numerous different tectonic units (covers and scales). The magnesite deposit itself is a foreign body that also has been tectonically inserted. The ore body has a length of 600 m, is 450 m deep, and has a thickness of 60 m on average, varying substantially however, The contact with the accessory rock is very precise. The deposit 1 = ore body, 2 = previous open pit, 3 = caved in area, 4 = block under excavation, 5 = land slide consists of coarse crystalline magnesite in excess of 90 per cent. The few impurities consist of dolomite and talc. The lower part of the deposit is inclined parallel with the schists at approx. 40 degrees. In profile it can be seen, however, that the upper part of the deposit has been tilted over. This is a result of a post-glacial land slide reaching from the bottom of the valley at 1400 m above sea level to the peak of the mountain at 2100 m above sea level. Due to this land slide, with horizontal movements of up to 100 meters, as well as older tectonic events, the rock was crushed to a vast extent. Through mining, the land slide was reactivated; about 40 million cubic meters of rock slowly flow downhill almost like a plasticized mass. Near the surface, the rock is completely crushed and resembles a glacier rupture zone. This renders the originally impermeable rock completely water permeable so that practically all of the annual quantity of 1000 to 1100 mm of precipitation permeates the rock and flows down into the mine. The carbonate rock turns into the preferred aquifer. From 1700 to 2600 cubic meters of water have to be pumped from the mine daily. On one hand, additional problems are caused by the water in the mine, on the other hand we have learned to make use of the down- hill pressure forces to improve the crushing process during block caving. The boundary of the downhill shearing zone moves downward as mining goes deeper.

Jan 1, 1981

By ir. H. Eraly

The allocation of miners to teams, and of teams to production faces, is complicated by the high degree of absenteism of miners in Belgium. Therefore, the exact knowledge of who is actually present at the beginning of a shift and of the exact skills of those present, enables the foremen and mine captains to constitute their teams before all men go down into the mine in the most effective way possible. This paper describes the system of attendance recording and of displays which the foremen use to constitute their teams and/or to interrogate the personnel data base in order to do so. It shows how the foremen dialogue with the computer, to change the function of a miner within a team, to another team, or the function of a team as a whole. The implementation of the system, data bases, and data communication equipment and procedures, is described. The benefits obtained are presented for each level of the company: foremen and team supervisors, engineers, mine management.

Jan 1, 1977

By Kazutami Imai

Effects of heavy metal ions on the growth and the activities of iron and sulfur oxidation of Thiobacillus ferrooxidans were investigated. Mercuric, silver, and stannous ions inhibited both of the growth and the iron- oxidizing enzyme system of the bacterium. On the other hand, uranyl ion inhibited the growth, but it gave almost no effect on the iron-oxidizing enzyme system. The inhibitory effect of uranyl sulfate on the growth of the bacterium is intensified on lowering the cultivating ' temperature from 28 ºC to 7 ºC. In the concentration of 10-3M, cadmium and copper ions inhibited colloidal sulfur-oxidizing activity of the cells 69 and 52 %, respectively, though they did not inhibit the iron-oxidizing activity at all in the concentration. On the contrary, stannous chloride did not givr any effect on the sulfur-oxidizing activity of the cells, though it inhibited the iron-oxidizing activity 55 % in the concentration of 10-3M. Several differences were observed among the cytochrome systems of cell-free extracts of the cells grown on iron and on sulfur.

Jan 1, 1976

By Robert L. Marovelli

A recent reorganization placed the health and safety research activities of the Bureau of Mines under a director, Division of Minerals Health and Safety Technology. The new health and safety research organization and its position in the Bureau hierarchy is shown in Table 1.

Jan 11, 1979

By D. W. Hutchinson, W. W. Wen, A. A. Terchick, J. C. Anderson

It is estimated that approximately 3% of the raw coal processed today in coal preparation plants throughout the nation will ultimately report to slurry-tailing disposal (Anderson, 1975). The usual disposal method is to pump refuse slurry containing - 48 mesh (300 pm) refuse into dams or impoundments constructed of coarse refuse. The failure of an impoundment at Buffalo Creek, Saunders, WV (Anon., 1972) resulted in an evaluation of refuse disposal methods by various regulatory agencies as well as coal producers. The result of this evaluation was the promulgation of federal regulations dealing with the construction, operation, and final abandonment of coal refuse disposal area. As a consequence of these regulations, the use of the landfill/impoundment method of disposal became in some cases economically unfeasible or technically impossible. US Steel has studied a number of alternative methods of refuse disposal. During an investigation of mechanical dewatering with a pressure filter, portland cement was added to the slurry to solidify the filter cake. Because of the success of the cement addition, it was decided to study the stabilization of fine coal refuse slurry through use of cement-type additives. The goal of the investigation is to develop a process that will use cement-type additives to solidify the refuse slurry into a form that can be handled and stacked with the coarse refuse, thus eliminating the need for slurry impoundments.

Jan 1, 1982

By F. Peter

I. GENERAL INTRODUCTION. TECHNICAL progress takes place in two directions: the improvement of methods, affecting the quality of the product; and increase in the economy of operations, affecting its cost. In the iron-industry, practice is pretty well settled, and. revolutionary changes of method are, for the present, not to be expected. Hence, in this industry, the principal endeavor is to reduce costs by the use of labor-saving inventions, such as the machines brought into use during the last decade. But it is not alone necessary to reduce the labor-cost; complete economy requires also a saving in raw material. Under this head we may rank the coal employed as metallurgical fuel; and it follows that progress includes the economic use of fuel, so managed as not to injure quality of product. In the present paper it will be shown how, by suitable utilization of the heat from the furnace, a large portion of it may be made available for other purposes. Such utilization of waste-gases is important in all industries which employ furnaces (especially heating- and smelting-furnaces); and in the first rank of these stand the iron-, glass-, and porcelain-manufactures. The following pages are devoted chiefly to the waste-gases of smelting-works, and especially to those reverberatory-furnace gases which are not combustible.'

Jan 12, 1913

By John J. McCabe

INTRODUCTION Over the years, Congress has written into the Internal Revenue Code various provisions aimed at lessening at least one financial burden faced by taxpayers in the mining industry - the federal income tax burden. These provisions include the election to deduct exploration expenses, the election to defer deduction of development expenses, and the percentage depletion deduction. Careful tax planning from the very beginning of a mining venture is essential in taking maximum advantage of these tax benefits. A major decision to be made is the choice of organizational structure. (For a more detailed discussion of this subject, see McCabe, John J., "Developing Structures for Investments in Mineral Property," New York University Institute on Federal Taxation, 42 NYU 24, 1984). One such structure is the use of multiple corporations, with mining activities conducted by one corporation and nonmining activities, such as manufacturing, financing and administration, conducted by the other corporation. This technique, which will be discussed in detail below, can be particularly advantageous in delaying recapture of previously deducted exploration expenses and in maximizing depletion deductions. TAX BENEFITS IN MINING Exploration Subject to certain restrictions discussed below, exploration expenditures (i.e., expenditures paid or incurred during the taxable year for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development state of the mine are deductible at the election of the taxpayer (Section 617(a)).* Were it not for this option, exploration expenditures would be required to be capitalized and recovered through depletion, after production begins. Exploration of a mineral deposit can be very costly and may not result in commercial production for some time. If the taxpayer has income to he offset by the deductions, a mining venture can usually be structured in such a way as to allow the offset of mining losses against the other income. With today's high interest rates, this election can be quite valuable in present value terms. Corporate and noncorporate taxpayers are subject to different restrictions on this tax benefit. Corporations may elect to deduct only 85 percent of eligible exploration expenditures (Section 291(b)). (The Tax Reform Act of 1984 reduced this to 80 percent effective for expenditures after December 31, 1984, in taxable years ending after such date). The remaining 15 percent (20 percent after December 31, 1984) is capitalized and recovered at the same rate as five-year ACRS property (Section 291(b)). Individual taxpayers are not subject to this 85 percent rule; however, any amount deducted in excess of ten-year straightline amortization is a tax preference item for individuals (Section 57(a)(5)). Individuals may avoid the tax preference by electing to capitalize exploration expenditures and amortize them over ten years (Section 58(i)). In order to prevent the taxpayer from, in effect, converting ordinary income into capital gain by selling property that has given rise to exploration expense deductions, the Code requires recapture of such deductions upon the occurrence of certain events (Section 617): 1. Upon disposition of the property, adjusted exploration expenditures are recaptured to the extent of gain realized on the disposition (Section 617(d)). 2. If the property is leased, the lessor is disallowed any depletion deduction until his adjusted exploration expenditures have been recaptured in the form of foregone depletion deductions (Section 617(c)).

Jan 1, 1985