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By S. D. Tolgyesi

Kidd Creek Background ? Located in Northern Ontario, Canada ? Underground base metal mine ? Operating since 1966 ? Total of 125Mt mined to date (2.43% Cu, 6.60% Zn) ? Current plan at 2.4Mt/Y (6575t/D) Current Practices ? Evaluating stope margins to ensure that value is added ? Scheduling sulphide and Cu stringer ore to limit oxidation in passes ? Scheduling to maintain uniform grades to concentrator ? (SOPs highlight problem stopes on mine plans, and limit blast sizes in those stopes which may contain sulphides prone to oxidation) ? Scheduling high-Pb stopes to avoid spikes to concentrator ? Providing weekly, monthly and long-term forecasts ? Reconciling mine and mill production ? Underground grade and dilution estimates by mine supervision ? Terminate mucking when grade becomes sub-economic ? Laser cavity surveys to provide feedback and improve Designs Cut-off Grades ? Ore value is obtained from copper, zinc and silver ? Ore outlines at 2% copper equivalent used to guide stope planning; sulphide outlines obtained from contacts while copper stringer outlines drawn from block model (kriged) ? Datamine block model and CADD software used to evaluate alternative stope shapes ? Stopes classified as waste, incremental, or full-cost based on margin calculations for each stope ? Incremental ore may be mined if it does not displace fullcost Ore Conclusions ? Grade control remains an important function for optimizing the ore extraction at Kidd ? The scope of the function has changed to a scheduling focus ? A change in grade control practices over time has not led to significant changes in concentrator feed ? The lead and iron sulphide content of the ore display upwards trends and may require more attention in the future ? The key function of field observations has shifted to flagging exceptions and terminate mucking at grade cut-off

May 1, 2003

Ni and samaria-doped ceria (Ni-SDC) cermet are desirable materials for making a solid oxide fuel cell anode working at intermediate temperature (800°C or lower) due to its good ionic/electronic conductivity at the reduced operating temperature. An advantage of the use of a Ni-SDC anode is the enlargement of the effective reaction zone in the interfacial area between the anode and the electrolyte. As a result of the mixed ionic/electronic conductivity of the anode, the electrode reaction rate is enhanced. Investigations into the properties of the ceria-based anode reveal that the performance of the anode is closely related to its microstructures, which are dependent on the composition and fabrication conditions of the ceramics. In this paper, a method for quantitative characterization and correlation of Ni-SDC cermet microstructures to the performance of an anode is investigated. A series of Ni-SDC anode samples are prepared by screen-printing (SP) and spin-coating (SC) techniques, and different microstructures of the samples are obtained through controlling the SP or SC conditions and the sintering temperature. Individual phases (Ni, SDC and pore) in the tri-phase boundary (TPB) microstructures in the electrode are differentiated and segmented from each other in optical and SEM images based on the differences in refractivity and atomic contrasts among the phases. The geometric properties of the segmented phases are characterized using image analysis methods, so that a quantitative skeleton illustrating the TPB microstructures of the Ni-SDC electrode is obtained. Statistical analysis of the distribution of the three phases in the TPB microstructures is performed and the relationship of the microstructures with the optimum electrode is interpreted in terms of the microstructure analysis data.

Jan 1, 2005

By K-A. Adamson

If fuel cells and hydrogen are to become a mass market reality a substantial amount of further research and development needs to be undertaken. Work in hydrogen storage, production, the economics of all aspects of fuel cells and hydrogen, materials balances, and product integration are just a few of the areas that are under focus. Setting R&D targets, and providing R&D funding are therefore areas that are central to the long term development of the market, and areas in which a number of governments worldwide are highly active. Some governments, such as Japan and Korea, have set a number of very ambitious, highly focused, long term targets and are backing this up with substantial funding, others such as the EU are working on a more integrated approach, wrapping some fairly fundamental R&D into large integrated projects which run in combination with a number of other market aspects, such as public acceptance and roadmapping. The US is slightly different, in that although is has a number of long term programmes and targets, FreedomCar and SuperGen being just two, the levels of funding are set annually with the passing of each years Fiscal Budget. This paper takes three high profile regions and analyses the R&D targets and funding levels for fuel cells and hydrogen. Criteria that will be looked at include: Time frame of target(s), level of ambition, funding issues, including: Funding windows, levels available, funding barriers, overall programme goals. The added value to this paper is that it will provide a clearer picture of where each region is heading, what are its strengths and weaknesses, in terms of R&D and where there may be areas for potential international collaboration.

Jan 1, 2005

By C. Caners

One of the main uses of fossil fuels is in the transportation sector, leading to environmental consequences such as climate change. In order to move towards a more sustainable energy infrastructure, a transition must begin from fossil fuels to renewable fuels, derived from e.g. biomass. One means of facilitating this transition is to develop reforming technology that can extract hydrogen from a suitable fuel that is either fossil fuel or renewable in origin. The hydrogen would be feed to a 'fuel cell' engine that would power the car, truck or bus. One reforming technology that is attractive for automotive applications is autothermal reforming (ATR). Autothermal reforming is the combination of steam reforming and partial oxidation, whereby a portion of the fuel is combusted using a sub-stoichiometric amount of air, and the resulting thermal energy drives the more desirable steam reforming reaction. ATR is attractive for fast start-up, rapid load following and ease of control. ATR also has the benefit of smaller volume and fewer peripheral requirements as compared to other reforming technologies. Recently, a bench-scale gasoline autothermal reformer (ATR) was constructed and tested. This ATR employs a novel design, consisting of three concentric annuli in order to promote heat transfer from the partial oxidation reaction to the steam reforming reaction. Concurrently, a CFD based model (FLUENT) of the ATR that considers the geometric complexity of the reformer was validated. In spite of the use of simplified kinetics, the model predicted well the observed trends in temperature and overall performance. This paper will discuss the use of the model to improve the design of the ATR. The impact of various system parameters upon performance will be investigated along with alterations in the geometry of the ATR. The various tradeoffs in performance and system volume/size will be highlighted in the context of a fuel cell power system.

Jan 1, 2005

By A. Gillis

"In order to obtain the equipment necessary to automate the equipment it was decided that the Department of Mines and Milltronics would jointly survey the circuit. This survey involved a metallurgical study by the Department of Mines and Milltronics took sound recordings during manual operation, checking in circuit bottle necks and determining the number of sensors that could be applied.The conveyer is driven by 2 PIV drives, each has a variable speed of 3/ 1. The cross conveyer that feeds directly into the rod mill feed chute will contain an automatic sampler and will eliminate the necessity of stopping the belt feeders to take samples. At present, hourly samples are taken from this point and the circuit is upset and cycling results.The Adequate scale is very close to the rod mill to totalize and thereby give a continuous indication and the second purpose is to take a signal from it and control the solution addition to the rod mill.A pneumatic positioner was obtained and put on the scale which produces a 3 tp 15 psi signal which is proportional to the actual tonnage going across the scale. This signal was fed to a bias loader which was mounted on the control panel. From there the operator can set the amount of solution that is wanted by the rod mill. No matter what the feed rate is, the signal coming from the bias loader will follow it automatically. This in turn goes to the pneumatic solution valve (1 ½” ) and the solution goes in with the feed to the rod mill. This is only part of the solution required for dilution since the rest of it is used as a force jet for the feed to the rod mill."

Jan 1, 1965

By Mike Power

Geophysical techniques have played a pivotal role in northern kimberlite exploration since the initial discovery at Point Lake in 1991. In the Slave Craton and surrounding regions, there are definite contrasts in physical properties between kimberlite intrusions and surrounding bedrock. Kimberlite commonly displays higher magnetic susceptibility, distinctive remnant magnetism, low electrical resistivity and lower density than surrounding rocks. In addition, the distinctive geometry of kimberlite pipes is reflected in geophysical responses which further facilitates target discrimination. There has been an evolution in geophysical exploration strategies over the past 12 years. Helicopter total magnetic field and electromagnetic (HEM) surveys have proven to the most cost-effective means of conducting first pass investigations in prospective areas. During the early 1990's, total magnetic field and frequency domain electromagnetic surveys were virtually the sole techniques employed during follow-up surveys. Inevitably, the initially high rates of kimberlite discovery declined in the areas surrounding the original finds. Marginal magnetic and EM anomalies were all that remained to be tested and this spurred interest in the improvement of existing interpretation algorithms and in the application of additional complementary techniques to reduce the exploration risk. Gravity has become a popular third survey following the deployment of the Falcon (TM) airborne gravity gradiometer system by BHP Billiton in 1999 and improvements in ground techniques. Ground penetrating radar (GPR) has proven to be particularly useful in delineating kimberlite pipes following drill discovery and in exploring for kimberlite dykes in settings where indicator mineral trains indicate such targets are likely. Seismic methods have been tested for both reconnaissance and delineation but remain underemployed. Given the high cost of drilling in the North and the proven success of geophysical techniques in reducing exploration risk, it is likely that an increasingly diverse range of geophysical techniques and innovative interpretation techniques will continue to be applied in kimberlite exploration.

May 1, 2003

By H. Saari, D. Y. Seo, J. Beddoes, T. R. Bieler

Prior work on effects of lamellar orientation on creep rates and other mechanical properties have shown that having lamellae parallel to the tensile axis provides optimal creep resistance and good strength. Consequently, a directional solidification system was used to examine the effect of solidification rate on the development of crystals with lamellae parallel to the growth direction. The nominal chemical composition of TiAl ingots was Ti-46A1-2Mo-2Nb (at%) and the ingots were 20 mm in diameter and 180 mm long. The master alloy bars were placed in a high purity yttria mold on a copper chill plate and raised into the hot zone of a Bridgman furnace. The alloys were melted and then directionally solidified at withdrawal rates of 4, 8, and 12 mm/min. As-cast specimens were sectioned at positions of 4, 22, 66, 111, and 155 mm from the bottom of the ingot to evaluate microstructure and crystallographic texture as a function of distance from the bottom of the ingot. The directionally solidified microstructure consists of continuous columnar grains with fully lamellar structure, a network morphology of primary 13, yttria particles, and interlocked columnar boundaries. For all three ingots, the texture at 4 mm shows many peaks, with isolated strong peaks, and a slight tendency toward <111> plane normals within about 20° of the cylindrical axis. At 155 mm, all specimens showed substantially stronger clustering of <111> orientations near the cylinder axis, with the strongest clustering of poles occurring for the 8 and 12 mm/min specimens. Analysis of diffraction peaks indicates that strongly compressive residual stresses in the radial direction are present in the casting. The combined microscopy and texture analysis provides more complete understanding of the processes of directional solidification of TiAl alloys.

Jan 1, 2004

By Ayako Iwakoshi

Highly concentrated pastes of gold nanoparticles were successfully produced by use of a special kind of protective polymer and a mild reductant. Solid part of the pastes consists of up to 85wt% of gold nanoparticles, 10~30 nm in diameter, and residual protective polymer. This component can be diluted by any kinds of solvent at arbitrary rates. Electronics, optics, catalysts, colorants and surface metal coatings are possible application fields. 1. Introduction Noble metal nanoparticles are of interest in a variety of fields ? such as colorants, metal coatings, electronics(1), optics(2), and chemical catalysis(3). Especially, in the color field, the gold nanoparticle has been known as an aesthetic red colorant for stained glass and fine glassware, such as Venetian glass. The mechanism of coloring is attributed to surface plasmon absorption of gold nanoparticles(4,5). The gold nanoparticle in stained glass shows very clear red color, which is very durable for hundreds years. On the other hand, the red color of organic pigment in paint films often fades away within several years. We intended to reproduce the elegant and stable coloring of stained glass in paint films. In order to color a very thin, 20~50?m, paint film like stained glass, production of highly concentrated dispersion of gold nanoparticle is necessary. To achieve this, there were two issues to be overcome. One is how to prevent the coagulation of gold nanoparticles in highly concentrated solution. So far, several methods to prepare gold nanoparticles(6,7) were reported. But only a few methods succeeded to stabilize the gold nanoparticle dispersion at higher concentration than ppm order. The other is controlling of the particle size, this is because the color of gold nanoparticles is very sensitive to the particle size. Only when the particle size lies around 10 nm, the suspension exhibits red color like stained glass.

Oct 1, 2003

By Bryon Bisiaux, Walter Valery, Sonny Mwansa, George Amonoo, Adrian Dance

"Newmont Ghana Gold Limited’s Ahafo operation have been working with Metso Process Technology & Innovation (PTI) since early 2009 to increase mill throughput from a combination of controlled blasting practices and optimised primary crusher and grinding circuit conditions. For such Mineto-Mill projects, PTI’s methodology is termed Process Integration & Optimisation (PIO).Ahafo operate a SAG mill, ball mill and pebble crusher (SABC) circuit that processes a range of primary ore of varying hardness from different pits which is blended with soft oxide material. The PTI study focussed on ball mill limited material from the Apensu open pit.Following a benchmarking study of all blasting, crushing and grinding practices in January 2009, PTI recommended changes in both blasting and crushing conditions in order to generate a finer feed size to the SAG mill. Additional operating changes in the grinding circuit were recommended.A series of trials were conducted in November 2009 where three blasts were fired using a different blast design (hole diameter and explosive type) in the same area of the Apensu pit as the benchmarked material in January 2009. Top and bottom benches (or flitches) from each blast were sent exclusively to the grinding circuit and the material was tracked using PTI’s SmartTag™ system.The results from the six trials showed a significant increase in primary ore throughput at a reduced blend of oxide material. Ahafo have since standardised on these modified blasting conditions for all Apensu ore zones and have been able to sustain higher throughput compared to historical performance on similar material.This paper summarises the phases of the PIO project, the changes made in operating practices and the outcomes of the blasting trials that validated the predicted increase in mill throughput."

Jan 1, 2012

By R. W. Pugh, S. L. Ma

"High carbon rods are typically used as the grinding media in rod mills. Usually an AISI I 090 grade of steel is used which provides the high hardness needed for abrasion resistance and sufficient toughness to prevent rod breakage.Work to improve performance in the past has mainly concentrated on increasing the hardness for improved abrasion resistance. This has been accomplished by adding alloys to the steel which uniformly increase the hardness across the rod section.However uniformly increasing the hardness of the rod produces a more brittle product and at high hardness l1evels can lead to rod breakage problems. Heat treatment processes can be used to selectively increase the surface hardness to high levels while maintaining the core at lower hardness levels to give a product that wears slower without breakage. AltaSteel has developed and mill tested a higher hardness heat treated grinding rodThis paper describes the development of a simple model to predict performance improvement with different hardness profiles and the AltaSteel heat-treated grinding rod process. Mill characteristics of the Endako operation are summarized and predicted performance improvements based on hardmess are compared to the approximate 25% achieved in trials running since July, 1991 at this mill. Early results of other mill trials are also presented.INTRODUCTIONAltaSteel, in Edmonton is a major supplier of grinding media. We have a strong desire to continually increase the quality and performance of our products and thereby improve the efficiency of our customers' processes. In the area of grinding rods, we wanted to produce a product with a significant improvement in wear rate. Second to energy, rod consumption usually represents the next highest cost in processing. This paper presents our development of a heattreated grinding rod that has reduced consumption by about 25% in trials to date."

Jan 1, 1993

By J. C. Salas, A. Weishaupt, J. A. Guzman

The origins of the electrorefining process date back to 1869, when the first ER cathodes were produced at Pembrey, South Wales. By the time that Pembrey was closing, Chuquicamata tank house was under construction, initiating in 1915 a long history of electrolytic cathodes production. Initially electrowon cathodes and later electrorefined cathodes were produced. During the history of Chuquicamata tank house, there have been several challenges associated with the quality demanded for electrolytic copper. Among them, the transformation from electrowinning to electrorefining in 1952, the onset of the direct commercialization of ER cathodes and the phase out of wire bars in the 80s, several technological changes including the implementation of permanent cathodes, and certainly the constant increase in complexity of the anodes refined. This paper explores the manner in which Chuquicamata has addressed these challenges and examines its links to process characteristics, which have been necessary to maintain a product quality according to market requirements and a brand, “CCC”, that is widely recognized worldwide. INTRODUCTION Located in the north of Chile, in the Atacama Desert, Chuquicamata is an open pit copper mine that for many years has played a relevant role in the global and local mining industry. Known from prehispanic times, the Chuquicamata deposit was initially developed between 1912 and 1915 by the Chile Exploration Company, the operating company of the Chile Copper Company controlled by the Guggenheim Brothers in the USA (Yeatman, 1916). Officially inaugurated on May 18th, 1915, by the President of Chile who pressed a button in Santiago sending a telegraph signal to the power generation plant specially built in Tocopilla, 1500 km north. It signaled the beginning of generating energy, sending it to Chuquicamata, another 140 km east (“El mineral de Chuquicamata”, 1915), marking the beginning of its industrial operation.

Jan 1, 2019

By Hammenm R., J. Hammen, C. Hammen

"The production of salable Rare Earth Element (REE) products necessitates a sequence of chemical separation steps between the mine and market commodities. The effectiveness of the chemical separations that purify REE salts is critical to the success of the producer, as the purity of REE salt products affects their market price. This is due to the fact that impurities in REE salts, even at low levels, can be deleterious to the function and usability of the end product. The purification of REE by removal of low levels of contaminant has been referred to as "product polishing". The technologies commonly in use for product polishing, solvent extraction (SX) and ion exchange (IEX) are challenged by the availability of separation chemistries to separate the contaminant from the desired REE salt. In simple terms, if a product specification is 99.9% purity, the SX or IEX separation reagents need to have at least a 999:1 selectivity ratio. Significant testing has been carried out on the use of solid phase extraction (SPE) columns to extract low-level impurities such as aluminum or zinc from REE product streams. The SPE columns are nano-composite materials that have rapid equilibration kinetics with the solutes being processed by the columns. The SPE matrices have been modified with chelating ion exchange ligands that bind the contaminating ion with great selectivity in residence times of a few seconds. Thus, REE streams with 1 to 2% of contaminating aluminum ions, have been polished to >99.99% purity. In this paper, results are presented on the removal of aluminum impurity from a didymium (neodymium+praseodymium) product stream using SPE technology. The selection of the SPE medium and the process steps to treat the feed solution for aluminum removal and ultimate stripping and recycle of the solid phase extractant are discussed."

Jan 1, 2014

By G. W. Zhang, Changsha Research Institute of Mining and Metallurgy, X. Xiao, Y. Long, L. L. Huang

"The paper presents a scale-up and design method of vertical screw stirred mill, in which the closed circuit of mill and hydrocyclone was assumed as one factor, theoretically regardless the affects inside system of the mill and hydrocylone. The specific energy is chosen as a scale-up criterion, based on the premise that when fed the same feed material, mills of different sizes delivering the same specific energy will yield products.Batch grinding tests are conducted to determine the specific energy, and combined with industrial production data, scale-up and design of vertical screw stirred mill for industrial production are accomplished. Having developed this method for the vertical screw stirred mill used in regrinding duty of iron ore in Ma Steel, it has now been successfully applied in other installations.INTRODUCTIONThe Towermill was developed in Japan in the 1950s, by the Tower Mill Kubota Corporation, it was fine and ultra-fine grinding mill of the metallic ores and concentrates. Due to the rapid development of metal mining and useful minerals disseminated fine, fine grinding and ultrafine grinding equipment has also been more wide used in minerals processing industry. Typical fine and ultra-fine grinding mil are the Vertimill and Stirred Media Detritor (SMD) Mill of Metso, Eirich Towemill, Outotec HIGmill, FLSmidth VXPmill, Xstrata Isamill and the vertical screw stirred mill (JM) of CRIMM, etc.JM series of vertical screw stirred mill were invented by Changsha Research Institute of Mining and Metallurgy in the 1980s. Energy saving and consumption reducing have been achieved through the optimization and engineering practice. More than 500 units JM series of vertical screw stirred mill are used in the iron ore, copper ore, copper-molybdenum ore, molybdenum ore, Pb-Zn ore and Au ore."

Jan 1, 2016

By So-Yeong Lee, Moosang Lee, Seung Hwan Ahn, Ho-Sang Sohn, Jongshin Chang

It is necessary to understand the characteristics, phase changes and chemical reactions of flue dusts introduced from a furnace to an off-gas line in order to achieve the stable operation and the improvement. This study is to develop the dust reaction model for chemical reactions of dusts in an uptake shaft of smelting furnace and a waste heat boiler. Phase equilibria and reaction paths in this system were determined by thermodynamic calculation with experimental and industrial data. The oxidation reaction rate of dusts was determined by the gas film mass transfer controlling. And the sulfation reaction rate was evaluated by the unreacted shrinking core model. Kinetic parameters were estimated by reference data including industrial ones. The present study with the developed model shows various effects of temperatures, dust particle sizes, and O2 gas partial pressures on dust reactions. INTRODUCTION The flue dusts from a copper smelting furnace move along a furnace off-gas stream into an uptake shaft and a waste heat boiler (WHB) and electrostatic precipitator(s). It is necessary to control the dust quality in order to stabilize the operation because the sticking behaviors differ depending on the phase of dusts. Phase changes of dusts are caused by chemical reactions at given conditions such as temperature and partial pressure of gases. Therefore, it is required to understand the phase changes and chemical reactions of dusts in order to perform the improvement and stable operation. The present study carried out the investigation to understand their fundamental knowledge. Especially, this study was focused on the kinetics of chemical reactions of flue dusts, developed the model. In particular, the scope of development and utilization of the model was defined as the uptake shaft of the Mitsubishi S furnace and the S-WHB radiation section in the Onsan smelter. Information needed for the modeling work referred to data from these processes.

Jan 1, 2019

By Randolph A. Pax

"The internal operation of a tumbling mill is a very hostile environment and precludes the sustainable operation of internal sensors to measure the mechanisms of charge motion and breakage events. Instead indirect methodologies are required to expand the current understanding developed within a framework of perfect mixing of the mill contents. A number of measurement approaches have been successfully used to explore the operation of SAG mills including strain instrumented lifter bolts, mill shell strain measurement and thermal (energy balance) of operating mills.Early acoustics measurement was developed by Hardinge using a 'microphone' located close to the expected toe location. This signal was an indicator of the mill fill. Improvements were implemented with the use of two microphones straddling the toe location to try to increase the sensitivity of the measurement and reduce ambiguities. Further improvements included a filtered signal indicative of steel interactions. Unfortunately, the mechanisms of signal generation and the complexity of the processes do not provide a consistent signal.In recent years, advanced acoustic measurement using arrays of microphones utilising signal processing techniques have been implemented as SmartNoise and validated on over 30 mills. This paper will discuss the results obtained with signals such as water holdup, mill shell steel hits and two each of the toe and shoulder angles. An estimate of the internal mill component wear rates is also accessible.Advanced acoustic measurements with wide bandwidths when combined with physics models and process understanding has achieved a step change in the understanding of the dynamic internal operation of a tumbling mills on time scales of 80 ms. These techniques have been used extensively on SAG mills, but have also been applied to FAG and ball mills. Acoustic measurement is used for the rapid diagnosis of mill conditions and holistic control for optimisation and stability."

Jan 1, 2016

By Wengui Su, Qi Zhang, Junce Wang, Zhijun Ma, Xingyuan Weng

"Mesoporous materials with large specific surface area, pore size, and pore volume have been widely used in many fields such as ion exchange, gas separation, adsorption, and catalysis. Mesoporous materials prepared using natural zeolite have the advantages of both acid and alkali resistance. In this work, mesoporous materials were prepared using natural zeolite as the starting material and diethylenetriamine (DETA) as a template. The resulting samples were characterized using scanning electron microscopy (SEM), X-ray diffraction (XRD) and N2 adsorption-desorption experiments. The influence of the crystallization temperature and crystallization time on the specific surface area, pore volume, pore size, and morphology of the resulting mesoporous materials are also discussed. Our results show that for an increase in both the crystallization temperature and time, the average pore size first increases then decreases, while the specific surface area first decreases then increases. Based on this work, we concluded that the optimal crystallization temperature was 2003 and the optimal crystallization time was 60 h. These conditions gave an average pore size of 17.93 nm, a pore volume of 0.048 cm3g-1, and a specific surface area of 16.48 m2g-1.INTRODUCTIONMesoporous zeolite, as the name implies, is a highly porous crystalline zeolite. This material is of interest due to its high hydrothermal stability, its adsorption and diffusion properties for macromolecules, and its excellent selectivity and activity as a catalyst. In recent years, it has become a hot spot among research of porous catalytic materials and has been widely used in petroleum and natural gas processing, fine chemical processing, various adsorption and separation tasks, and other uses (Carvalho & Urquieta- Gonzalez, 2015; Teh, Triwahyono, Jalil, Mukti, Aziz, & Shishido, 2015)."

Jan 1, 2016

By Robert B. Parsons

"During hard times, the focus on tax issues makes a slight change in direction. Mining companies contemplate the tax treatment of transactions and circumstances which are the product of a difficult financial environment. Some of these issues are discussed in this month&apos;s edition of Tax Notes.Every industrial sector in Canada is undergoing a major restructuring of some form, and the mining industry is not an exception. The longest recession since the Great Depression continues to affect the economy. Mining firms seek to bring their debt/equity ratios into line, and try to replenish depleted retained earnings by selling assets. This month, Tax Notes briefly examines some of the tax issues which are generally encountered during the course of such a restructuring process.Debt SettlementOne question which commonly arises during hard times concerns the tax treatment of a "" gain "" realized by a debtor on the settlement of a debt. Consider, for example, a simple situation where a creditor wants to protect itself from further losses, and makes a deal with the mining company to accept a cash payment of $8 million in full settlement of a $10 million loan. In financial terms, the debtor has made a $2 million gain on the settlement of the debt. What is the tax treatment of that gain?The Income Tax Act (the Act) contains provisions in section 80 of the Act and in section 5400 of the Income Tax Regulations which deal specifically with this question. First of all, it is noted that the $2 million gain is not brought directly into income for tax purposes. However, as indicated below, the gain could affect the debtor&apos;s income indirectly to the extent that certain of the debtor&apos;s tax pools must be reduced by the amount of the gain."

Jan 1, 1993

By G. Armand, A. Noiret, D. Seyedi, J. Morel

"Clay formations in their natural state exhibit very favorable confining conditions for repository of radioactive waste because they generally have a very low hydraulic conductivity, small molecular diffusion and significant retention capacity for radionuclides. Nevertheless, one concern regarding the hydromechanical behavior around drifts in such claystone is the associated pore pressure field disturbance during excavation works. In the short term, the very low permeability leads to an almost “undrained” condition, meaning that the stress change due to face advance will create volumetric strains leading to an increase or decrease of pore pressure. If the effective stresses reach the failure level, the induced damage around these excavations might change the favorable properties of such formations. To demonstrate the feasibility of a reversible deep geological disposal of high-level and intermediate-level long-lived radioactive waste (HLW, IL-LLW) in the Callovo-Oxfordian claystone (COX) formation, the French national radioactive waste management agency (Andra) started in 2000 to build the Meuse Haute-Marne underground research laboratory (M/HM URL). The present paper illustrates observed pore pressure changes during excavation of drifts (˜5 m diameter), of micro tunnels (˜0.7 m diameter) and a borehole (˜0.15 m diameter). All these openings are parallel to the major horizontal stress at the main level of the M/HM URL. In drifts parallel to the major stress (i.e., when the initial stress field in the drift section is quasi-isotropic) an important increase followed by a drop of pore pressure is observed in the horizontal plane at the drift wall. These observations emphasize the impact of the in situ stress state and rate of excavation on the pore pressure and provide important insight of the hydro mechanical behavior of the COX claystone and the relationship between pore pressure and excavation induced fractures zone."

Jan 1, 2015

By Robert B. Parsons

"This article is based on a paper presented by Jim Scott at the 1988 annual convention of the Prospectors and Developers Association of Canada. The paper suggests a number of factors that might be taken into account in negotiating royalty terms.IntroductionRoyal ties are a part of mining life in Canada. They are used by many kinds of individuals in many kind s of situations. Prospectors commonly take royalty interests back when they transfer claims to development companies. Mining companies disposing of undeveloped (or sometimes even developed) properties are often paid at least in part by royalties. Royalties are even used by institutional investors with no other connection with the resource industry.Such different royalty holders have different investment goals, different cash flow requirements, and different risk / return preferences. These differences have given rise to a number of different royalty type s. These types range from the simplest cents-per-ton royalty (where the operator pays a royalty at a fixed rate per ton milled) to net smelter return or ""NSR"" royalties (where the royalty is based on a percentage of the operator&apos;s NSR) all the way to net profit interest or ""NPI"" royalties (where the royalty is based on the operator&apos;s bottom-line net profit),The fundamental difference between the many royalty types is in the risk/ return relationship. The cents-per-ton royalty, for example, is relatively risk-free. Of the many economic factors which affect a mine, the only one which will affect the royalty holder is the amount of ore physically milled. On the other hand, the potential for significant gains under a cents-per-ton royalty is also very limited. The royalty holder will not share in any increases in the market price of the end product or any cost reductions achieved by the producer."

Jan 1, 1988

By Robert B. Parsons

"This article is based on a paper presented by Jim Scott at the 1988 annual convention of the Prospectors and Developers Association of Canada. The paper suggests a number of factors that might be taken into account in negotiating royalty terms.IntroductionRoyal ties are a part of mining life in Canada. They are used by many kinds of individuals in many kind s of situations. Prospectors commonly take royalty interests back when they transfer claims to development companies. Mining companies disposing of undeveloped (or sometimes even developed) properties are often paid at least in part by royalties. Royalties are even used by institutional investors with no other connection with the resource industry.Such different royalty holders have different investment goals, different cash flow requirements, and different risk / return preferences. These differences have given rise to a number of different royalty types. These types range from the simplest cents-per-ton royalty (where the operator pays a royalty at a fixed rate per ton milled) to net smelter return or ""NSR"" royalties (where the royalty is based on a percentage of the operator&apos;s NSR) all the way to net profit interest or ""NPI"" royalties (where the royalty is based on the operator&apos;s bottom-line net profit),The fundamental difference between the many royalty types is in the risk / return relationship. The cents-per-ton royalty, for example, is relatively risk-free. Of the many economic factors which affect a mine, the only one which will affect the royalty holder is the amount of ore physically milled. On the other hand, the potential for significant gains under a cents-per-ton royalty is also very limited. The royalty holder will not share in any increases in the market price of the end product or any cost reductions achieved by the producer."

Jan 1, 1989