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By William A. Vogely, John E. Tilton

INTRODUCTION Mineral commodities are normally separated into three generic classes-metals, nonmetals, and energy minerals including oil and gas as well as the solid fuels. Metals, the focus of this chapter, encompass a large number of different substances. The U.S. Bureau of Mines, for in- stance, has commodity specialists following trends in over 40 metal products of importance to the country's economy and well being. Ranging from aluminum to zirconium, the metals display an incredible degree of diversity. Some such as lead are heavy, others such as magnesium are light. Some such as copper are good conductors of electricity. Others such as silicon are semiconductors. Mercury is found in liquid form, while some metals melt only when heated to extremely high temperatures. Iron and steel, aluminum, and copper are consumed in particularly large tonnages in a multitude of end uses, while many minor metals are needed in only small amounts in a few highly specialized applications. The use of some metals can be traced back into history for millennia, indeed back to the bronze and iron ages, while the commercial consumption of aluminum and other newer metals is less than a hundred years old. Some metals are extracted from large open pits, others are dug out of deep underground mines, and still others are processed from the sea. Mining and processing can be relatively uncomplicated and inexpensive, though in most instances highly sophisticated technology is necessary and the costs are high. Some metals are produced mainly as byproducts of other metals. Some are recovered in large quantities from the scrap of obsolete equipment and demolished buildings. Some are mined in only a few locations and traded worldwide, others are produced in many different countries. Some are sold by numerous firms at fluctuating prices determined on competitive commodity exchanges, others are produced by only a handful of firms and sold at stable producer-prices. This diversity makes the metals interesting, indeed fascinating, to study. Yet, it also poses problems, for each metal in its own way is unique. There is no general model or economic analysis applicable to all metals. Rather each must be considered individually, so that the analysis or model takes explicit account of its particular features. This means that a single chapter cannot begin to cover comprehensively the economics of all metals, and no attempt to do so is made here. Instead, we will concentrate on illustrating the usefulness of relatively simple economic principles, particularly those associated with supply and demand analysis, in understanding the behavior of metal markets. The next section begins by exploring the nature of metal demand. It is followed by an investigation of metal supply- from individual product production, from by- product and coproduct production, and from secondary production. The final section then illustrates the usefulness of the concepts introduced in earlier sections by using them to analyze

Jan 1, 1985

By Lee T. J

The area, A, under a gamma-ray log that passes through a horizontal bed given by: A = gl/k. Here is the equivalent concentration of U3O8 in the body, l the thickness of the body, and k the calibration factor or sensitivityof the logger. The area is independent of the logging speed or logger time constant.This relationship, together with the first moment about the maximum of the log and its value there suflicient to determine the thickness, position of the centre of the bed from the log maximum and the concentration of U3O8.Numerical results obtained from artificial and field data show that the computed results arc as good as those obtained by methods such as the inverse filter technique and the iterative method. The present method yields results that arc easier to feed into an ore reserve data base.

Jan 1, 1981

By C. Schlumberger

INTRODUCTION The object of the present paper is to discuss, from a geological point of view, the practical results obtained by the authors with the method of the 'resistivity map of the subsoil' in the study of various mining problems. Some of the studies described date from 1920, 1922, and 1923. They are, therefore, quite old, at least as far as geophysical research is concerned (1). Others, on the contrary, are very recent (2). We shall deal only very briefly with the theoretical and technical sides of the processes employed. This paper has, essentially, a practical purpose, and it has seemed unnecessary to enter into a detailed discussion of the methods. Such a discussion cannot be presented without introducing ,quite. Complex considerations both of mathematics and experimental physics, which interest only the geophysicist: whose work is highly specialized.

Jan 1, 1931

Within ten months of the first significant intersection on the Vera deposit, approval was given to proceed with a $28.3 M underground development of the Vera-Nancy gold mine. Contrary to what the timeframe suggests, the development of the underground mine was planned in a logical and methodical manner which enabled confirmation of the resource, evaluation of the orebody for mining and sufficient production to recommence milling operations at the Pajingo treatment plant. This paper describes the underlying factors on which the project was planned and developed. The approach has successfully enabled the mine to be in production 18 months after discovery without compromising any future production or potential expansion

Jan 1, 1998

By D. A. Jacobson

Mining operations, whether new or existing, are constantly looking for ways to maximize production and improve energy efficiency, while keeping the footprint required to a minimum. The Nordberg MP1250 cone crusher was designed with these three goals in mind. A series of side-by-side evaluations comparing an MP1250 to an MP1000 were completed at two Freeport-McMoRan operations. The first evaluation began October 2009 in a tertiary position and the second began March 2010 in a secondary position, where it remains in full production today. Utilizing 25% higher power capacity than the existing MP1000 tertiary crushers, the MP1250 had 29% higher capacity and 17% lower specific energy, adjusted for differences in feed and product size. The MP1250 compared to the existing MP1000 secondary crushers achieved 30% higher capacity at a slightly reduced specific energy, while achieving a finer product. The MP1250?s higher capacity and energy efficiency may have application in many crushing plants. Depending on site specific economic factors, greenfield projects may benefit from a smaller footprint and less ancillary equipment, whereas brownfield projects may benefit from higher capacity or a finer product within the same footprint.

Jan 1, 2012

By M. du Toit

Cromanite?is a new high-strength austenitic stainless steel developed by Columbus Stainless. It contains approximately 19 percent chromium, 10 per cent manganese and 0,5 per cent nitrogen. Cromanite can be welded successfully, but due to the high nitrogen content of the base metal, certain precautions have to be taken to ensure sound welds with the desired combination of properties. Although no matching filler metals are currently available, Cromanite can be welded using a range of commercially available stainless steel welding consumables. Welds produced using E309L, E307, E307Si and E312 filler wires are resistant to hot cracking and the formation of nitrogen-induced porosity, but the hardness, strength, ductility and toughness of the welds are generally inferior to those of the base metal. In applications where full use is made of Cromanite?s high strength, welds with matching strength levels would be required. In wear applications, where Cromanite is used primarily for its work-hardening properties and corrosion resistance, lower strength welds would probably be acceptable. Welds produced using E307 filler metal demonstrate the best combination of properties for use in wear applications. The welds display high rates of work-hardening that would result in increases in hardness and strength when subjected to abrasive or high impact environments.

Jan 1, 1999

By Clarence Seyler

THE technical difficulties of cutting thin sections of coal for examination by transmitted light have hitherto restricted the investigation of the important subject of the microstructure of coal to the few possessed of the requisite skill and time. Apart from this, the method fails with anthracites and other coals rich in carbon, owing to the opacity of the material. Occasional use of the method of polishing a surface, with or without etching, has been made, but it was not until Winter1 published an account of his results that attention was seriously directed to the method. In May, 1923, a specimen of dull anthracite came into my hands; I tried Winter's method on it and the presence of megaspores and other vegetable structures became clearly visible. A preliminary notice was published by me;2 but I soon abandoned the use of Schulze's solution having found that a mixture of chromic and sulfuric acids gave far better results. In the meantime Turner and Randall, in America, had independently developed the method of flame etching, as applied to anthracite, with great success. I have spent a year studying the method of chromic etching, which gives excellent results with bituminous coals and cannels, as well as with anthracite. For anthracites, I have used the chromic method and Turner's method of flame etching, whichever was the more convenient or as a check one on the other. The polishing is done, according to metallurgical practice, by the use of a polishing machine and successively finer emery paper, followed by polishing on cloth moistened with a suspension of levigated green oxide of chromium, and a final rubbing on "selvyt" (a cotton velvet polishing cloth) moistened' with alcohol. The polished sample is examined by reflected light with a 2/3 and 1/6 in. objective. Bituminous coals usually show considerable structure, and even anthracites show it faintly in places. The sample is then etched by immersion in a boiling solution made by adding 10 c.c. of concentrated sulfuric acid to 30 c.c of a saturated solution of chromic acid; enough water is then added to dissolve

Jan 3, 1925

By Derek H. C. Wilton, David T. W. Evans

"Abstract - The Midas Pond gold prospect, central Newfoundland, is hosted by sheared and altered felsic and mafic pyroclastic rocks of the Tulks Hill volcanics, Victoria Lake Group, and has been trenched and tested by 19 diamond-drill holes. Gold values are sporadic, with the best diamond-drill intersection assaying 7.3 g/t over 0.9 m, and the highest grade channel sample containing 14.7 g/t over 1.15 m. Alteration and mineralization are confined to a 200 m wide brittle-ductile shear zone. This shear zone formed in response to regional D1 deformation, and the shear zone fabric parallels the regional S1 foliation. D2 deformation resulted in broad Z-shaped flexuring of the shear zone. The deformation was probably related to the ca. 396 Ma to 420 Ma Salinic Orogeny.Advanced argillic alteration and an extensive halo of Fe-carbonate and pyrite surround the gold mineralization. Alteration minerals include pyrophyllite, paragonite, quartz, plagioclase, chlorite, fluorite, Fe-carbonate, and pyrite. As such, the alteration seems to reflect combined epithermal (argillic) and mesothermal (carbonate) mineralizing environments. The argillic alteration and fluorite represent a regional hydrothermal effect on the felsic volcanic rocks; whereas, the Fe-carbonate and pyrite represent a mesothermal alteration associated with auriferous quartz veins. The Au, which is spatially associated with pyrite, occurs in three structurally-controlled vein sets. These veins are confined to the contact between a highly deformed breccia (the banded mafic tuff) and structurally overlying, altered felsic tuffaceous rocks. The vein sets include: V1 boudinage veins that parallel the shear-zone fabric (C-shear veins), and V2 and V3 extensional fracture veins which are controlled by an S2 fracture cleavage. V1 veins are the earliest and contain the lowest concentrations of Au. V2 and V3 veins are concentrated within the hinges of the D2 flexures.Pb isotope data for galena separates indicate that the Pb in the vein systems was probably of local derivation. Sulfur, C, and O isotope data for mineral separates are similar to data for typical mesothermal lode gold deposits. Fluid inclusion data suggest the presence of at least three hydrothermal fluid types in the region, viz., (1) an early saline fluid which produced the argillic alteration, (2) a CO2-bearing fluid directly related to the auriferous mineralization, and (3) H2O-NaCl fluids which flowed through the Midas Pond shear zone at a lateral distance from the zone of mineralization. The mineralizing fluids are interpreted to have been CO3 -2-rich types which originated through metamorphic dehydration and decarbonation of mixed island-arc and continental crustal rocks. Gold precipitation resulted from the reaction of these fluids with the Fe-rich breccia unit. Pre-existing and simultaneously crystallizing pyrite served as loci for Au precipitation."

Jan 1, 2000

By Oswald J. Heinrich

(with figures on plate V.) THE origin of spontaneous combustion in collieries is, of course, chiefly due to bad system in laying out the pits, unclean workings, insufficient ventilation, and neglect in damming off works after they are exhausted of the main coal. This is particularly indispensable in the Richmond field, because it is difficult and dangerous here, on account of the inferior roof, to remove the last vestiges of coal ; and we are compelled also to retain all the slates and bands, as far as possible, in the pit, to help fill up, although such material is liable to fire. This, however, can be prevented to a great extent, as men¬tioned below. I am satisfied that the only system of working this thick coal is by cross-cutting ( Querbau, ouvrage à travers) or working in benches, as practiced in France (Creusot, Rive de Gier, St. Etienne), in Sile¬sia (Königsgrube), which I have used as far as it is practicable in an old pit, almost torn to pieces by former workings. Modifications may, of course, be needed, even in the same pit, on account of irregu¬larities in the seam. I am also satisfied for economical reasons (on account of the heavy cost for timbering) that pits here ought to be worked upwards, even if it requires a longer period of time to win the coal, and a greater outlay of capital to commence with. The various saddle-shaped "troubles" making natural minor basins in the main basin aid in the execution of this plan. A pit worked once ought to be worked out clean, given up, and dammed off forever. If sections of proper height are assumed, according to the required amount of production for a certain period of time, they ought to be worked out and filled in as much as possible, dammed off, and ulti¬mately allowed to fill up with water, in order to protect the tipper works in future from fire in the gob below. This I consider indispen¬sable, because we may not be able profitably to fill in all the ground. To do so we have to use the waste of the mine, although it is liable to fire in time. In using this stuff, it ought to be surrounded by walls of rock not liable to take fire, laid firmly in clay, the gob being in the middle, and firmly covered and packed with clay on top. In

Jan 1, 1873

By James Johnston

Synopsis.-A description of the working of the mills of this company and the metallurgical practice in vogue, by which a remarkably. complex silver ore, averaging 54 oz. of silver per ton (run-of-mine ore), is treated to give a 95.66 per cent. extraction. The main features of the, processes are: The cyanide amalgamation of the high-grade ore. The cyanide treatment of the low-grade ore, after extremely fine grinding and close classification, in a caustic soda solution. The use of a wet desulphurizing process to break up refractory silver minerals. The substitution of aluminum dust for zinc dust as a precipitant. The recovery and shipment of over 13,000,000 oz. of silver in bullion at. 997 to 999 fine since this metallurgy was inaugurated, about 2.5 years ago. On the completion and successful operation of the mill to treat their . high-grade ore,1 the Nipissing Mining Co., under the general management of R. B. Watson, started a series of investigations of the possible treatment of the low-grade ore by the cyanide process, so that they would be in a position to market only silver bullion. These tests were run in July, 1911, on a large scale, by G. H. Clevenger, on an average mixture of Nipissing ore. The results obtained by a partial amalgamation followed by cyanide treatment gave an extraction varying from 90 to 93 per cent. and were sufficiently encouraging to warrant Charles Butters, the company's Consulting Metallurgist, in recommending that the new low-grade ore mill under contemplation should be a cyanide mill, instead of a concentrator. The cost of such a mill, capable of treating 200 tons per day, to obtain a 90 per cent. extraction at a working cost of $3 per ton of ore treated, was estimated at $250,000.

Jan 1, 1914

Discussion of the paper Of JAMES JOHNSTON, presented at the New York meeting, February, 1914, and printed in Bulletin No. 85, January, 1914, pp. 107 to 133. CHAIRMAN E. GIBBON SPILSBURY.-I would like to call attention to the fact shown in this paper that less than five years or perhaps seven years ago nobody had thought it possible to cyanide with success silver ores. The cyaniding of silver and gold ores was first of all started in Mexico, and gradually extended to this country in the case of the silver ores alone. The average extraction, I think, for the metals in Mexico, in the case of the silver ore, is less than 85 per cent., whereas here, in the case of a very complex ore, carrying a high percentage of sulphur and arsenic, and other objectionable elements, the ore has been treated so as to extract an average of 95 per cent. of the silver contents of the ore. It is really a phenomenal revolution in the metallurgy of silver ores which has been demonstrated and worked out at the Nipissing mines. GEORGE A. PACKARD, Boston, Mass.-I would like to suggest a slight modification, perhaps, of the statement which is made that no one considered cyaniding of silver ores up to five, or perhaps seven years ago, because in 1897, when I was at Mercur, Utah, one mill near there was operating on silver ores. It did not operate very successfully from a commercial standpoint, because they did not have a great deal of ore, but the extraction, I was told, was very satisfactory, and I am quite confident that it was, because, as suggested by the name, Chloride Point, the ores were silver chloride ores, and of course very easily soluble. Some years before that, in 1892, I made some tests myself. I spent three months making tests on more or less complex silver sulphide ores at Virginia City, Mont., and while our tests on the plain sulphide ores, finely ground, were quite successful, on account of the presence of a small amount of copper we did not work out a satisfactory solution of the problem at that time; although since then a cyanide plant has been erected and for at least eight years these ores have been treated by cyaniding at Virginia City, and the mill is still in operation. The period of five to seven years should, therefore, be modified considerably, in justice to the pioneers in the cyanide processes. REGINALD E. HORE, Toronto, Ont., Canada.-I hoped that there would be metallurgists from Cobalt here to present and discuss Mr. Johnston's paper. In their absence a few remarks from me may help to make clearer to you what they have accomplished.

Jan 6, 1914

Further discussion of the paper of JAMES JOHNSTON, presented at the New York meeting, February,. 1914, and printed in Bulletin No. 85, January, 1914, pp. 107 to 133. See also Bulletin No. 91, July, 1914, pp. 1473 to 1496. THOMAS CROWE,* Victor, Colo.-The interest manifested of late in the treatment of low-grade ores, together with Mr. Clevenger's discussion of the Mill and Metallurgical Practice of the Nipissing Mining Co., prompts me to acid a few remarks relative to concentration in connection with cyanide treatment of low-grade ores. Mr. Clevenger in this discussion does not condemn concentration in this connection, but, nevertheless, the tone of his remarks would lead one to believe that his conclusions are like those of many others: that concentration is often turned to as a last resort in an attempt to improve or obtain an extraction upon an ore by the recovery and sale of the refractory portion of the ore. This, I will attempt to point out, is not always the case. Concentration in connection with cyanidation often performs an entirely different function, i.e., one of saving fine grinding. Economy being the keynote of successful treatment of low-grade ores, the problem often becomes more commercial than metallurgical, and, as there is generally a definite ratio existing between cost of operation, degree of comminution, and percentage of extraction, the grade of ore under treatment usually imposes a limit upon these factors. With many ores grinding is the most expensive single item in their treatment; therefore, the degree of comminution is very apt to be governed by the allowable cost of operation. With most ores the degree of comminution controls to a great extent the percentage of extraction. So in the treatment of low-grade ore it often becomes necessary to sacrifice extraction, through coarse grinding for the benefit of cost, in order that the greatest ultimate profit may be obtained, and it is under these conditions that it is, possible for concentration to play an important part in overcoming to some extent the effect of mesh. The precious metals occurring in an ore are usually closely associated with the metallic portion of the ore, and as this metallic portion is generally fairly well liberated from the gangue at comparatively coarse meshes, further grinding of the ore is necessary only in order that the metallic portion may be reduced sufficiently fine that the precious metal part of it may be dissolved by cyanide solutions in a reasonable length of time.

Jan 11, 1914

By T Smith, J Hatley

With the increased focus on the need for more uranium mines, this paper presents the design process currently underway for the development of the Millennium deposit in northern Saskatchewan, Canada. This deposit, located 630 - 750 m below surface, will be accessed by two shafts and will be mined by blasthole stoping methods at less than 500 t/d. Mining grade will approximate two per cent U3O8 and mine life is expected to be six to seven years. The project is a joint venture between Cameco, AREVA and JCU. This paper discusses in detail methods used to predict worker radiation exposures, the methods used to monitor the work environment and procedures unique to the uranium industry necessary to minimise worker radiation exposures.

Jan 1, 2008

By Robert Martin

New Millennium ?a new project for an experienced mine building team ?Owns 100% of KeMag(Harris Lake) property ?Owns 80% of LabMag(Howells River) property -20% owned by Naskapi Nations of Kawawachikamah ?All founding directors are mining professionals : Geologists or Mining Engineers ?All have extensive experience in the iron ore industry ?The Project Office is located in Montreal, lead by a team of experienced iron-ore professionals Project Overview Geology & Resources Market Prospects Process & Product Development Development Plan Questions

May 1, 2007

"The McArthur River uranium deposit is the single richest uranium ore body developed in the world to date. The ore body’s average grade is 15% U3O8. Proven reserves are in excess of 450 million pounds. The grinding circuit is located underground. The ground ore is pumped to a surface facility where the slurry is thickened and loaded into containers for shipping to the Key Lake mill 78 kilometers to the south.The paper will briefly describe the mining method employed. The underground ore handling and grinding circuit, and surface facilities including slurry load out, wastewater treatment and the freeze plant will be described in detail. The paper will emphasize radiation and safety procedures that are followed to minimize operator exposure to radiation risks.LOCATIONThe McArthur River mine is located 78 kilometres north of the Key Lake mill. It is located at latitude 57’ N in northern Saskatchewan, within the southern boundary of the Athabasca formation. The nearest town is Pinehouse, located 320 kilometres to the south. Access to the mine is by an all weather road and by a private airstrip.HISTORYThe McArthur River Operation is jointly owned by Cameco Corporation (69.805%) and Cogema Resources Inc. (30.195%). Exploration for uranium in the McArthur River area started in 1980 by the Saskatchewan Mining Development Corporation, a predecessor company of Cameco.In 1984, a 12-kilometre long basement conductor was identified at a depth exceeding 500 metres. Systematic exploration drilling of this conductor resulted in the discovery of the P2 North deposit. Subsequent surface drilling programs from 1989 to 1992 delineated a narrow ore zone over a strike length of 1700 meters at a depth of 500 to 600 metres. At this time, geological reserves for the deposit were estimated to be 2.4 million tonnes at a grade of 5.0% U3O8 for a uranium content of 260 million pounds U308"

Jan 1, 2001

By K. Short

Today?s modern mining operations have literally dozens of applications and systems generating data whose information very often, are not crossed or centralized for operational decisions. In remote locations, the information and situation awareness is typically limited to the location itself. In addition, access to that information is limited to a small, select group of personnel that have received training on how to interpret the results. When the situation affects another area of the mine then information is relayed to the applicable areas involved. Few workers have time to analyze the situation thoroughly, to see how it affects the mines symbiotic relationship within all areas of production. If the capability to correlate and measure events and situations that affect your overall key performance indicators are not in place, the opportunity to identify process improvement becomes more difficult.

Feb 27, 2013

The labour question is one that has caused mine managers much thought and anxiety and is likely to continue to do so as long as human beings exist. The difficulty is to devise some arrangement whereby the interests of miner and mine ownerare identical. Mines cannot be worked without capital, and capital is no good without labour, yet, though both have the mine in common, their interests are not exactly the same. Some men are happy so long as they can scrape through by exerting themselves as little as possible, but capitalists do not work mines for charity, they want some return for their money.Where a large number of men are employed there are bound to be examples of all sorts, good and bad, and it is because one cannot depend on all, that different methods of employment have to be adopted. Which method is selected depends to a great extent on the labour market, local conditions, nature of the ore and the way in which it occurs.A big step towards success is obtained by securing the services of good bosses, not only those who know how work should be done, but men who have a knowledge of human nature. It is a big mistake to be too lenient with a man, also to be unnecessarily harsh. A good boss will always be sought out by good men who have worked under him before, or who have heard of him from others. By a good boss we do not mean one who employs two men where one would do, or who lets the men loaf...

Jan 1, 1901

By L. E. Beverage

In 2006, the Mine Improvement and New Emergency Response Act (?2006 MINER Act?), Pub. L. No. 109-236, 120 Stat. 493 (2006) was enacted in a bi-partisan move to strengthen the 1977 Mine Safety and Health Act. This action followed several underground coal mining accidents at the Sago and Aracoma Mines in West Virginia and the Darby Mine in Kentucky. The focus of that legislation was, in part, to force technological development and implementation. It involved the recomposition and training of rescue teams. Requirements for sealing worked out areas of mines were changed when MSHA invoked its Emergency Temporary Standard (?ETS?) authority for the first time in many years. Increased penalty amounts were established for certain types of violations for all types of mining, and minimums were set for unwarrantable failure violations issued under Section 104 (d)(1) and (d)(2); 30 U.S.C. Section 814 (d)(1),(2). The entire 30 C.F.R. Part 100 penalty criteria was revamped in a rulemaking, effective in April 2007. The visions were ambitious and noteworthy and those in industry and government have spent the last four years working through the aftermath of intended and unintended consequences of these changes. The penalty structure arrived at in 2007 has proven unwieldy and has contributed to the increase in contested caseload now before the Federal Mine Safety and Health Review Commission. In essence, litigation under the Mine Act ground to a virtual halt when the number of cases increased but the budget for Administrative Law Judges, who hear the cases, and the Solicitor?s office who represents MSHA, was not increased. Addressing the backlog effectively was one of the major challenges when Joe Main was confirmed as Assistant Secretary in early 2010.

Jan 1, 2011

By F. T. Cawood

Inauguration of the new political dispensation in South Africa in1994 initiated a dynamic shift in the ownership, management and development of the country?s affluent mineral heritage. The process of substituting the old South African regime with a new equitable system started soon after the 1994 election of the African National Congress (ANC) to parliament. The Congress?s Freedom Charter revealed the intent of the new dispensation when it called for radical transformation of mineral development. However, since then there have been important changes affecting the rules of mineral development. These are: ?A drastic change in politics ushered in by negotiation, a spirit of reconciliation and a desire to settle disputes peacefully ?The globalization of the South African mining industry in tandem with the opening of domestic mineral resources to foreign capitalists and ?The introduction of sustainable development as a holistic approach to mineral development in order to replace traditional narrow-minded environmental management. Each of these significantly shaped the new mineral investment environment of South Africa. This paper represents a summary of the historical developments leading to the current Mineral and Petroleum Resources Development Act No. 28 of 2002, its regulations, the much publicised Broad-Based Socio-Economic Empowerment Charter, its associated Scorecard, and the Draft Royalty Bill.

Jan 1, 2004

By F. T. Cawood

This research report was produced in response to the release of the Mineral and Petroleum Royalty Bill. It involved are view of the mineral investment environments of selected countries in order to form an opinion on the appropriateness and competitiveness of the proposed royalty structure for South Africa. Many emerging countries have recently attracted a significant share of foreign investment, as a direct result of changes in policy. These are, by implication, the least risky and most favourable destinations for the ?investment dollar?. The five most competitive countries, namely Chile, Argentina, Peru, Mexico and Brazil have been identified as succeeding with their policy visions of creating favourable domestic investment environments. The investment rules of these countries served as a basis for the compilation of a Competitive Investment Framework (CIF). This is a template of best practice against which other investment environments, such as that of South Africa, can be measured. The framework indicates that mineral royalties should ideally be no more than three per cent, demonstrating that the regime proposed in the Royalty Bill is out of step with international best practice. Mineral royalties can never be viewed in isolation and in the assessment of the rates proposed in the Royalty Bill, one must consider the total taxation package. Such assessment appears in Section 5 of this report, demonstrating that there is reason for concern if National Treasury were to impose the rates stipulated in the Royalty Bill. The alternatives, conclusion and recommendations of the review appear in Sections 9 and 10. These are the result of independent analysis and assessment of the fundamental principles. It is done through the application of a Competitive Investment Framework that avoids the highly subjective and emotional views that often accompany a process like this.

Jan 1, 2003