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By H. Lyn Bourne

This is the seventh annual tabulation of royalty information. It is also the first year in which some data have been deleted to make room for new data. The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity. However, some people incorrectly believe that the selling price and the royalty are the same thing. The contract between the owner (lessor) and the mining company (lessee) is the mineral lease. Some clauses that are common to mineral leases include: identification of property, granting clause, reservations, definitions, royalty rate, taxes and title, indemnity, termination, inspection, assignability, successors, and reclamation. There often are variations in royalty rates for a given commodity that reflect differences in location, quality, market conditions or public versus private ownership. History In the time of ancient Rome, the government owned the mining properties by virtue of conquest. It would lease the mines to favored citizens who would pay rent to the State. Various conditions of sovereign ownership of both land and mineral rights continued in Europe until the Renaissance. As the laws evolved for land ownership by private citizens, the concept that minerals belonged to the State (King, Crown, sovereign) continued until about the 15th century. Free miners challenged the notion of sovereign ownership and won the right to discover and claim minerals. But a portion of their production had to be paid to the sovereign - a royalty. So, the original concept of a mineral royalty was a tax on production that was due to the Crown or Church. The term mineral royalty, as it is known today, is a payment to the owner of the mineral rights (formerly the royal owner) for the privilege of mining and producing the mineral commodity. The owner of the mineral rights, the lessor, and the mine operator, the lessee, enter into an agreement to mine the property. The agreement is the lease. While this concept is common, there are some who do not understand that the royalty is a portion of production paid to the owner as agreed on in the lease document. This author has seen reports where the selling price of a commodity has been quoted as the royalty. ("They get 70 cents a ton royalty at their pit and the guy down the road only has a 65 cent royalty.") These reports have been authored by people not familiar with the mining industry. Lease clauses In addition to the amount to be paid the lessor, there are several other items to be addressed in the lease agreement. The following list may not be all inclusive, but briefly describes most of the common clauses any good mining lease should contain. Identification: This opening clause names the owner (lessor) and the operator (lessee), the address of each, and gives the legal description of the property. Granting clause: This part of the lease gives the time period or duration of the agreement and information about renewal periods. It also has language about the exclusive right of the lessee to mine the property. Reservations: If the owner wants to exclude any portion of the property or set some specific conditions about the operation, there needs to be a clause that describes these reservations. Definitions: This section should address some of the technical terms that the lessor may find confusing - short tons versus cubic yards, dollars versus percentage of average selling price, any escalator indices such as consumer price index or producer price index, and material mined versus material sold. Royalty: This section spells out what the royalty rate will be, how often it will be paid, if there is an annual minimum, the pay dates, and how the records will be kept. This section also describes the conditions under which the lessee is exempt from the annual minimum - natural disasters, strikes, governmental actions, or other causes referred to as force majeure. Taxes and title: The lease needs to identify who is responsible for the property taxes, severance taxes (if applicable), and other taxes that relate to the mining activity - taxes on equipment, improvements, or stockpiles. This is a good place in the lease for the owner to certify his ownership of the property and its mineral rights and also certify that no other leases are in effect. The lessees may want language that allows them to pay mortgages or other debts on the property to keep their lease in effect. Indemnity: This portion of the lease identifies that the lessee assumes the risks for lessee's mining operation. Lessor should expect indemnification by the lessee through standard insur¬ance policies - workers compensation, liability and property damage. Termination: Both the lessor and lessee want language that will allow them to terminate the lease. This section of the lease describes the conditions under which one of the parties may terminate the lease (failure of the

Jan 1, 1989

By R. Hedin, M. Dunn

The Pennsylvania Department of Environmental Protection (US EPA 319 program) provided funding to aid a public-private effort in the installation of an environmentally-friendly system to treat abandoned mine drainage at Jennings Environmental Education Center (Pennsylvania Department of Conservation and Natural Resources). Through this cooperative effort among state and federal agencies, mining, excavation, and environmental companies, college and home school students, Girl Scouts, and volunteers, a successful multi-component passive system, readily accessible for upgrades and public education/research activities, was built. 90 people were directly involved in construction of this award-winning system and about 1000 people annually benefit from the educational opportunities.

Jan 1, 2002

By Refik Elibay, Lawrence A. Williamson, George D. Barnes

Under an extremely aggressive schedule, final design of 13.5 km (8.4 miles) miles of 8.2 m (27 ft) diameter deep rock tunnel, 322 ML/day (85 million gallons / day)submersible pumping station and associated facilities were accomplished ahead of a federal court mandated consent decree schedule. Challenges overcome by the project team in enabling timely completion of the construction documents will be presented. Discussion includes evolution of final design, consideration of future O&M requirements, and risks identified for construction and operations, together with measures to manage and proactively prepare for such risks.

Jan 1, 2005

By M. S. Klima, A. Simard, M. L. Turek

Laboratory testing was carried out to evaluate several devices for recovering clean coal from bituminous coal refuse material. The bulk of the testing focused on using a dense-medium cyclone to process -0.6-mm refuse material. A hindered-settling column and a spiral concentrator were also used to process 1.2x0.15-mm material. Product yields and ash contents were obtained for all tests, while partition curves were generated for selected tests from which the characteristic performance parameters (relative density of separation and probable error) were determined. The results indicated that the dense-medium cyclone was capable of cleaning down to 0.037 mm, while the other devices were effective to 0.15 mm.

Jan 1, 2002

Introduction Some people say it is almost impossible to get mining permits in California. Some say the day of the lone mining entrepreneur is past. And some say you cannot make money mining gold where old-timers have already mined it, especially in Tertiary gravels. But a young mining operator and SME member, Tim Callaway, is proving these ideas wrong. Callaway's company, Brush Creek Mining and Development Inc., has the necessary permits for its Gardner's Point gold mine in Sierra County, CA. And, Callaway has secured funds for the 7.7 km'/d (10,000 cypd) Tertiary gravel operation. The company's initial goal is to produce 373 to 466 kg/a (12,000 to 15,000 oz per year) of gold at Gardner's Point mine at a cost of less than $6.43/g ($200 per oz). Feasibility studies are currently being conducted to consider product levels up to the 1555 kg/a (50,000 oz per year) involving additional plants and infrastructure. While exploring for other hard-rock properties, the Brush Creek company already operates the Brush Creek lode gold mine. The mine sits high on a ridge south of Goodyear's Bar, which is located on the North Yuba river. It might be noted that the Brush Creek mine has been the subject of media stories recounting how a mine can operate with sensitivity to the environment. Gardner's Point project In 1983, Callaway negotiated with the Gardners Point Ltd. Partnership for control of the Gardner's Point property. The Partnership had been engaged for three years in securing permits, mapping and drilling, and test mining. The Partnership actually mined about 43.5 dam3 (57,000 cu yd) of gravel, which yielded 25.2 kg (810 oz) of free gold. Later, the Brush Creek company acquired ownership of the property. The company then began its own exploration and development program. As underground development proceeded at the Brush Creek mine, plans matured for a high-volume operation at Gardner's Point. Australian and English investors contacted Callaway. A joint venture was negotiated. The Australian owners became majority participants; the Brush Creek company, a minority participant and the operator. The Australian investors agreed to contribute $3.5 million (60%) to the Brush Creek Joint Ventures. The Brush Creek company will contribute its expertise as well as assets and liabilities valued at $2.3 million (40%). About $2 million has been allocated to the Gardner's Point project. Later, Brush Creek Mining and Development Inc. sold 50.4% of the company's common stock to English investors for $5.4 million. Callaway negotiated this private placement, which permits further exploration of projects being investigated. Geography and history The Gardner's Point mine is located in the northern Sierra Nevada of California, about 9.6 km (6 miles) east of the little town of La Porte in Plumas County. The mine lies high on a ridge above Slate Creek, which divides Plumas and Sierra Counties. La Porte is accessible from the Sacramento area by a winding, paved, two-lane highway. But the mine is reached only by two different unpaved county and Forest Service roads. Both roads include steep grades in and out of the Slate Creek canyon. Mine elevation is about 1.4 km (4600 ft) above sea level. The area is thus threatened by occasional heavy winter snows, though it

Jan 3, 1987

By L. K. Marshall

The importance of high quality underground mine ventilation is readily apparent. The principles of primary and auxiliary mine ventilation, however, are sometimes less readily apparent. The first article in this two-part series discusses some general aspects of primary and auxiliary ventilation. Next month's article will detail considerations involved with auxiliary mine ventilation.

Jan 1, 1982

By Robert H. Merrill

In 1960, the Kennecott Copper Corp. and the U.S. Bureau of Mines entered into a joint research program to determine the changes in stress, strain, and displacement created by changes in slope angles. The field site was the Kimbley Pit, located near Ely, Nevada; the supporting laboratory investigations were made at the Bureau's Denver Mining Research Center. Following a study to determine the rock stresses in the mining district, the strike and dip of geologic defects (fractures) in the rock, and the laboratory-determined strength of the rock, a new slope angle and pit configuration was selected, and instruments were installed to measure changes in stress, strain, displacement, microseismic noise rate, and sonic velocities at several points in the west wall of the pit. Between February and November 1966, the west slope was changed from an average angle of 45° to a new slope angle that started at 45° on the south wall, gradually increased to 57 ½ at the center of the west wall, and to 61° on the north wall. The pit was deepened from about 500 feet to about 550 feet. About 2.55 million tons of waste and ore were removed by stripping and mining.

Jan 1, 1968

By K. C. Tran

This paper reviews the advancement of measurement technologies for the control of raw materials processes in the basic industries. The combination of digital technology and on line spectroscopy enables the development of intelligent instruments for composition and particle size analyses in real- time high- frequency control conditions. In many industries, the applications result in productivity improvement and energy savings. Plant specific examples include operating experience and benefits realized in sorting, blending and beneficiation processes. Instruments of the future not only measure specific parameters of the process and monitor its own health combined with self-corrective mechanics but also acts with intelligence to effect the quality of the process or regulate the primary apparatus.

Jan 1, 2001

By Lynn B. Hales

There is a large economic opportunity associated with improving metallurgical performance in mineral processing plants that use process control. Thus, future control systems will be developed towards more sophisticated user friendly, computer-based systems that use powerful software analysis and control techniques. Auto-tuning, adaptive control and process models will gain expanded use because of their transparent availability to the system designer. Control of individual unit operations will be optimized and coordinated through expert systems that monitor economic conditions and management directives and direct operations accordingly. Plant areas, once considered cost centers, will be integrated into plant-wide control systems for economic control and optimization. This article looks at new control hardware, process sensors, control strategies and software development tools. It also looks at the economics driving the continued development of advanced process control systems. Process control systems routinely used in the mining industry were born when the microprocessor was invented. They have continued along an evolutionary path from vendor specific processing hardware and proprietary operating systems to computer industry standard "open architecture" systems. The many economic forces that drive the development and functionality of these process control systems will cause this evolutionary process to continue. Two of the broadest categories are the needs of the end users and the desire of the system manufacturers to distinguish their products from one another. More

Jan 1, 1994

By K. N. Han, N. S. Kim, H. Yoon, J. S. Sohn

The leaching behavior of silver and silver oxides in ammonical solutions has been studied. The current study is concerned with an effective recovery of silver from secondary sources such as spent silver batteries. Silver associated with these batteries appears in various forms including metallic silver, argentous oxide, Ag2O and argentic oxide, AgO. The leaching behavior of metallic silver in ammoniacal solution has been studied using an electrochemical mehtod. Oxidants used in this study include hyperchlorite, hydrogen peroxide, bromine and iodine. Results on cyclic polarization and Tafel plots on the silver anode in ammoniacal solutions are presented and the results are discussed. The dissolution rate of metallic silver in ammoniacal solutions is also compared with those of silver oxides.

Jan 1, 2002

By M. H. Weinecke, B. P. Faulkner

This paper will discuss the process for making lightweight aggregate, the waste materials that make good lightweight aggregate, the chemistry of making lightweight aggregate and finally a discussion of the commercial prospects for making lightweight aggregate from wastes. Svedala Industries has been making lightweight aggregate (LWA) from waste materials for the last ten years. Many clay-like materials, such as coal-fired boiler ash and washings from a granite quarry, can be used alone or with additional waste materials to produce a commercially saleable LWA.

Jan 1, 2001

By R. K. Dunham

It has been estimated that 30% of the United States coal reserves occur in the Western States at depths which would preclude exploitation by surface techniques. Much of this coal occurs in seams considerably thicker than those presently mined in other parts of the country. Recognizing the lack of technology and experience in exploiting the thicker seam range the Interior Department's Bureau of Mines is implementing a major "Mining System for Western Coal," research program which has as its ultimate objective the development and demonstration of underground mining methods and technology for extracting these seams. One investigation, being carried out by D'Appolonia Consulting engieers, under contract to the Bureau of Mines, is concerned with design of an entry system for longwall top slicing of thick western coal seams. This presentation presents an overview of some of the problems which have to be faced in designing such layouts.

Jan 1, 1977

By William R. Yernberg

The 2002 Arizona Conference was held Dec. 8 and 9, 2002, at the Doubletree Hotel at Reid Park in Tucson. The annual conference is organized by the Arizona Conference Board of Directors, which represents SME sections in Arizona and adjacent areas. The conference provides an opportunity for individuals and corporations associated with mining in the region to get together once each year to discuss the status of the industry. The meeting featured a keynote address, a distinguished lecture and about 30 technical papers. As was the case at the 2001 meeting, the economy, the price of copper and foreign competition continue to be the hot topics of discussion among the attendees. The domestic copper industry still faces challenges due to low copper prices dictated by the world market and because of a weakened domestic economy. There continues to be concern about the Arizona region’s copper industry in light of the mergers, downsizing and shutdowns that have occurred during the past several years.

Jan 1, 2003

By L. Ozdemir, M. Cigla

This paper presents and discusses some of the computer models developed and currently used at the Earth Mechanics Institute (EMI) of the Colorado School of Mines (CSM). These include the performance models for full and partial face machines. Examples of input and output of these models will be illustrated for typical mining operations by using machines such as Tunnel Boring Machines (TBM), Continuous Miners (CM), Marietta borer miners and longwall drum shearers. The general approach to modeling and the available models are discussed and some examples of these models are presented. The comparison between the estimated and achieved performance, as well as the degree of improvement in the performance due to balancing and modification in cutterhead design are also discussed.

Jan 1, 2000

By Frederic Souche, Andrew R. Klaetsch, Brian Hann, Nick Goodenow

This paper describes support of excavation (SOE) design and construction for three large diameter shafts excavated through glacial soil and controlled blasting in complex sedimentary rock formations. SOE in soil consists of unreinforced secant pile rings designed to resist lateral pressure in circumferential compression, eliminating costly steel core beam reinforcing. Controlled blasting at the shafts, adits, and tunnels in densely populated neighborhoods requires managing risks to the public, buildings, and utilities. Controlled blasting approaches limited adverse impacts to receptors nearby while achieving adequate production and fragmentation. A site-specific observational approach was used to adjust blasting parameters, limiting the impact on local stakeholders while maintaining daily progress and managing overbreak.

Jun 13, 2023

By John B. Sabey, Vernon R. Degner

The industrial coal processing trend toward greater fines production, due to mining techniques and customer requirements for reduced ash and sulphur content in the fine coal product, is the basis for ongoing efforts to improve the performance of the flotation machine. WCO has successfully adapted the principles of the beds Column to a full size machine prototype. Recent plant evaluation tests confirmed the initial promise of this concept by achieving a considerably lower ash product while maintaining the combustible recovery level of conventional flotation machinery. The paper will include a review of the fundamental principles of the beds Column concept, together with a summary of the WEMCO R&D Program from concept evaluation and laboratory testing, through pilot, to full size machine tests. The performance of the WEMCO/Leeds flotation column will be compared to conventional flotation concepts using a flotation "kinetics" approach, which quantifies the floatable and non-floatable specie recovery performance using the Klimpel model as the basis for analysis. The variety of distinct features unique to this concept include a series of barrier rods which are used to advantage, often together with countercurrent reflux water flow, to achieve a significant improvement in product grade. The hydrodynamics associated with the mechanics of "gangue stripping" from the rising "air bubble-floatable specie" matrix will be briefly reviewed.

Jan 1, 1988

By D. M. Abbott, H. J. Sandri

The geoscience matrix method has proven useful for valuing metallic mineral properties lacking delineated mineral resources or reserves. However, the method explicitly excludes commodity markets from the factors considered; marketability is assumed. When valuing industrial mineral properties, marketability cannot be assumed, it must considered. Market considerations may also significantly affect the standard weightings of geoscience matrix parameters such as the proximity to known deposits. In some cases, such proximity is desirable but in many cases it is undesirable. Application of the geoscience matrix method to industrial mineral properties therefore requires thoughtful, market-related adjustments to the basic geoscience matrix methodology.

Jan 1, 2000

By V. E. Chrapunov, T. V. Chnyrenkova, R. A. Isakova, V. A. Luganov

Arsenic-gold bearing ores are used as a flux in smelting or leached out to extract gold. To decrease arsenic content in processed materials and to break up the lattice to free the gold, raw materials are roasted. This article analyses the results of laboratory and pilot testing of dissociating and oxidizing roasting of gold-arsenic bearing concentrates. During the dissociation roasting under vacuum arsenic is sublimated into elemental and sulfide forms. The process allows to minimize the negative influence on the environment but requires costly engineering solutions. Roasting in a neutral medium or with limited quantity of oxygen in the gaseous phase makes it possible to sublimate arsenic in the form of oxides and sulfides and may be carried out in the autogeneous mode in fluid bed furnaces. If oxidizing roasting of the concentrates is done in the presence of soda, practically all arsenic and sulfur form water-soluble compounds and remain in cinder.

Jan 1, 2002

By V. Rajagopal

Corrosion and abrasion properties of a series of chromium-containing cast iron balls with Cr contents ranging from 0 to 29% was evaluated and compared with austenitic stainless steel and mild steel balls. Marked ball wear tests were performed on artificial ore samples consisting of 95% quartzite with either 5% pyrrhotite or 5% chalcopyrite under a nitrogen or oxygen atmosphere. The electrochemical mechanism was investigated by correlating the corrosive wear with the corrosion currents obtained from potentiodynamic polarization curves under abrasion. An offset in their electrochemical activities was observed somewhere between 16 and 26% Cr. In fact, 26 and 29% Cr cast irons showed an excellent corrosion resistance approaching that of austenitic stainless steel. Flotation recoveries were estimated on a 95% quartzite + 5% pyrrhotite sample ground with various cast iron ball materials under an oxygen or nitrogen atmosphere. Electrochemical results are found to be in good agreement with corrosive wear obtained from marked ball wear test and with flotation results.

Jan 1, 1991

When it comes to processing industries, speed matters. More precisely, the faster/greater the throughput of finished product out the door, the more quickly money can flow back into the corporate coffers. In this quest for greater output, no processor can afford any weak links in the chain. Especially in the case of bulk solids operations, any one piece of equipment that slows the process down jeopardizes the profitability of the entire plant. However, one clay processor uncorked a pre-existing bottleneck by replacing its outdated separating equipment with a new design that immediately improved output.

Jan 1, 2007