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By K Taylor

Small scale tests have been conducted in blasting vessels in the laboratory, where the effects of explosive composition, charge diameter, explosive confinement as well as additives to the explosive were examined on NO, NO2, CO and CO2 production. Fumes were analyzed continuously using a flue analyzer, providing analysis every 15 seconds. The results were compared to previous work conducted in the laboratory and to literature findings. It was found that the type of the explosive was the most dominant factor with emulsion explosives producing significantly less amounts of toxic gases. ANFO was shown to always produce nitrogen oxides, even when fuel rich. Tests were also conducted by detonating explosives in broken rock, simulating the release of products of detonation during the formation of a muckpile. Products of detonation were affected by the presence of atmospheric air or rock around the charge. Gaseous products of detonation migrated through the rock piles at different rates, resulting in a change of toxicity values over time. In the small scale experiments, CO appeared to travel faster than CO2 while NOX was not identified. Analysis of the gases that were released during digging, several hours after the blast, resulted in high temporary concentrations of toxic fumes.

Jan 1, 2014

By Hernando Labarthe Correa

La presente investigación busca establecer una política racional para el abastecimiento de insumos que elimine los trámites burocráticos a través de una política de insumos de Mediana Minería que pueda generar un ahorro real de divisas y una mayor producción minera. En este sentido, se define el significado económico de los insumos, se divide la categorización en insumos nacionales e insumos importados, se revisa el reglamento del Art. 125° del decreto legislativo 18880 y los trámites de exportación, así como la importancia de las ferias internacionales y el depósito de mercancías en el perfeccionamiento de este sistema.

Nov 20, 1978

By J. A. Singmaster

A REPORT that it did not pay to use present-day galvanized iron on account of the short life of the material, accompanied by proofs of the state-ment in the form of a tabulated history of the first costs of various kinds of building materials and their main-tenance expense, started an investigation of modern galvanized products. At the very outset it was apparent that our experience with galvanized products was by no means unique. Correspondence with the State Agricultural Depart-ments, the Agricultural Experiment Stations, the County Agents and State Granges all over the United States brought a mass of complaint on this same score. Visits to large buyers of galvanized sheet and wire revealed the same condition coupled with an ever-increasing use of substitutes for galvanized iron. We believe, therefore, that the title of this article is fully warranted by the experience of the consuming public. A study of the proceedings of the various societies having to do with the testing and use of sheet iron and steel products revealed a tremendous amount of work on the life of the base metal itself. Great stress was laid on differences in life of various types of iron and steel, the difference amounting at best to months rather than years. Very little recent attention has been paid to a study of the life of the zinc coating and the causes of its present-day lack of durability. There have been some real exposure studies published, how-ever, which show that the weight of the zinc coating determines the protection afforded by the galvanizing, which is of far greater influence on the life than the base-metal composition. An interesting paper was published by the Phillipine Journal of Science in 1916, entitled: "Galvanized Roofing in the Phillipines," a contribution from the Bureau of Science of the Phillipine Island Government. The author, Mr. Arguelles, found on 18 old galvanized sheets, after from 30 to 35 years' exposure, from 2.3 to 4.1 oz. of zinc per sq. ft. of sheet and sums up the study by saying: Of the various factors influencing the durability of galvanized iron which have been studied with a view towards accounting for the difference in behavior of old and modern sheet, it appears evident that the greater weight of zinc per unit of area on the former accounts for the greater durability.

Jan 10, 1922

By R. F. Tylecote

"The closure of the iron and steel making plant at Consett in Durham in 1980 marked the end of an era-a long era in the world's iron and steel making history. Iron had been smelted in the Tyne-Wear area of the United Kingdom since before the Roman period, but apart from evidence of smithing in the Roman period, the historical evidence for iron production on a large scale dates from the 14th century.The paper describes sites in the area that first worked the bloomery process and then, in the 16th century, as did most of Europe, graduated to the blast furnace process. The main emphasis is on the early introduction of coal to iron making at the end of the 18th century and the use of the steam engine to render integrated sites possible.IntroductionIron has been smelted in the Tyne-Wear area of the United Kingdom since before the Roman period, but apart from clear evidence of smithing in the Roman period, the historical evidence for iron production on a large scale dates from the 14th century. Like many other countries, the United Kingdom benefitted from the visits of foreign observers, such as Jars, Svedenstierna, de la Houliere and Dufrenoy, who left detailed records. In modern times, information gained from excavations of iron and steel making sites has supplemented the historical record.Natural ResourcesUp to the end of the 19th century, the industry was wholly dependent on its own resources. Iron ore, limestone, wood, coal and water power were all found a short distance away from the main valleys of the Tyne and Wear. The main sources of iron ore were the coal measures, with rider ores from the lead vein s in Alston and Weardale, and carbonate ores from shale horizons in the Carboniferous limestone. Good coking coal was available from West Durham and reasonable coal from the Tyne valley and Northumberland limestone. Limestone was plentiful."

Jan 1, 1983

By J. L. Ellenberger, T. Miller

"A limestone mine in Ohio has had roof instability problems that have led to massive roof falls extending to the surface. This paper describes a collaborative study of these events undertaken by the National Institute for Occupational Safety and Health and the mine owners. The study focuses on the roles that weak, moisture-sensitive floor and weak bands in pillars play in a general instability that led to roof falls at this mine. The NIOSH Stone Mine Pillar Design software (S-Pillar) does not include analysis for weak floor or weak bands and recommends that when such issues arise they should be investigated further using a more advanced analysis. It is important to recognize that without the impact of the floor or weak bands, the calculated inherent stability factor for these pillars is within the recommended design range. Therefore, to further investigate the observed instability occurring on a large scale at the Ohio mine, FLAC3D numerical models were employed to help determine the failure mechanism. Roof-to-floor extensometers were also installed in the areas predicted to have further instability. This case study will provide important information to limestone mine operators regarding the impact of weak floor causing the potential for roof collapse, pillar failure, and subsequent subsidence of the ground surface. This recent case demonstrates that weak floor can be a significant factor in pillar stability and should be assessed during the design stage of the mine.To an area-wide failure (Zipf, 2001). In that case, it appears that the pillars had actually remained intact. However, moisture-related yield of the weak floor caused deformations which passed through pillars and into the roof, triggering roof collapse around the intact pillars (Esterhuizen et al., 2011). This previous case and the case presented in this study, while not identical, both demonstrate that weak floor and/or bands within pillars can be a significant factor leading to instability."

Jan 1, 2015

By William L. Husk

Stockpiles have always been a necessary part of coal mining except, perhaps, when a person was mining only for the needs of his family from a seam on his home place or coal mined for the use of a small hamlet and carried to each man's house as it was mined. Then it may have been stockpiled at each man's place for several days or on the village common. Mining with this limited production required waste stockpiling. Stockpiling of the products of coal mining, both coal and waste material, has always been a necessity. Very little coal has ever been moved directly or immediately from the working face to the point of consumption and burned. It has always been expedient to stockpile the coal some- where and store the waste.

Jan 1, 1981

By B. Haugrud, E. McConaghy, M. Collins, G. Smith

"Laterite ore processed by the Ambatovy joint venture in Madagascar is primarily limonitic in nature, containing approximately 40–45 wt.% Fe and 1.1 wt.% Ni. The process selected for treatment of this ore considered the behaviour and deportment of iron in each step of the commercial flowsheet. Such considerations included nickel and cobalt recoveries, reagent consumptions, liquid-solid separation characteristics, and intermediate and final product purities. In this paper, the results for the first three years of commercial operation at Ambatovy are compared with the design parameters, with emphasis on the behaviour of iron.RÉSUMÉ Le minerai latéritique traité par l’entreprise commune Ambatovy au Madagascar contient principalement de la limonite, composée de 40–45 % en poids (wt%) de fer (Fe) et de 1,1 wt% de nickel (Ni). Le procédé choisi pour le traitement de ce minerai tenait compte du comportement et du maintien du fer à chaque étape du schéma de traitement commercial. Parmi les facteurs pris en compte figuraient les récupérations de nickel et de cobalt, les consommations d’agents réactifs, les caractéristiques de séparation des liquides-solides ainsi que la pureté des produits semi-fini et final. Cet article compare les résultats des trois premières années d’exploitation commerciale à Ambatovy aux paramètres d’étude, en insistant notamment sur le comportement du fer.INTRODUCTIONThe main component of nickeliferous laterite ore is iron, and the Ambatovy deposit in Madagascar is no exception. Ambatovy ore is primarily limonitic in nature, containing approximately 40–45 wt.% Fe and 1.1 wt.% Ni. The nickel content of the ore is approximately 1/40th that of the iron content by weight; therefore, successful recovery of nickel depends on close control of the behaviour of iron in the selected process.The Ambatovy area is located 80 km east of Antananarivo, the capital of Madagascar. Exploration dates back to 1960, when the Malagasy Service Géologique carried out a limited pitting and auger-drilling program. Phelps Dodge Corporation (now Freeport-McMoRan Copper & Gold, Inc.) was granted the mining rights to the property in 1995 and carried out significant resource definition, environmental assessment, and engineering studies between 1995 and 2001 (Chou, Rooke, Williams, & Hanks, 2000). In 2003, Dynatec Corporation, which was formed in 1997 by the merger of Dynatec International Ltd. and Sherritt International Consultants Inc., signed a joint venture agreement with subsidiaries of Phelps Dodge to evaluate the Ambatovy nickel project. Dynatec became extensively involved in the development of the project, including process selection and pilot plant testing in Fort Saskatchewan, Alberta (Collins et al., 2004, 2005; Collins & Vardill, 2005; Collins, Buban, Holloway, Masters, & Raudsepp, 2009). Dynatec acquired 100% of the project in 2005 and a joint venture between Dynatec, Sumitomo Corporation, Korea Resources Corporation (KORES), and SNC-Lavalin Inc. (SLI) was formed shortly thereafter to provide funding for further development. SLI was responsible for engineering, procurement, and construction management of the commercial facilities. Sherritt International Corporation reacquired Dynatec Corporation, including 40% ownership in the Ambatovy nickel project, in 2007. The current Ambatovy joint venture consists of an integrated nickel and cobalt mining, processing, refining, and marketing enterprise between subsidiaries of Sherritt (40% owner and mine and plant operator), Sumitomo Corporation (32.5% owner), and KORES (27.5% owner)."

Jan 1, 2017

By Marcos Valdéz Córdova

El presente estudio señala el proceso de mineralización en el domo de Yauli a través de una revisión en el comportamiento de dominios estratigráficos, estructurales, intrusivos, metamórficos y distintos minerales de alteración hidrotermal. Asimismo se describe la geología, su estructura, la alteración de los intrusivos, la alteración de los silicatos metamórficos, la alteración de los mármoles y calizas dolimíticas, cuerpos, mantos y las vetas de reemplazamiento.

Nov 20, 1978

By MEHMET KIZIL, PETER KNIGHTS, ROYAL REA

A 1/20 scale experimental dozer push test rig was designed and constructed to quantify the expected production rates (loose cubic meters per hour) for dozers operating in hard-rock bulk push applications. The particle size distribution of the material employed in the test rig was modeled on a fragmented muckpile representative of that for a typical surface copper/gold mine overburden. Buckingham Pi theory was applied to mathematically develop factors for scaling up dozer productivity parameters, including blade loads and push times. Dozer production rates were investigated for various dozing distances and slope angles. A series of instantaneous productivity curves were produced which are applicable for use in hard-rock dozer push operations. The productivity curves produced demonstrate that dozer productivity declines rapidly over the range of 10 to 40 m.

By K. Boakye, T. Newman, P. Bláha, M. B. Toelle

"This paper presents a quarry optimization plan using a block model and an in-house development quarry scheduling and optimization software (QSO Expert) to help improve quarry operations at Crystal River. The Crystal River Quarry is an underwater quarrying operation that barges limestone via the Gulf of Mexico, as the main source of raw material to a cement plant in Theodore, Alabama. To improve the quarry operation, an evaluation was completed to optimize the quarry planning and extraction procedures of the quarry. In order to achieve this, additional exploration drilling campaign was implemented, a new block model was re-calculated and the latest version of QSO Expert software was used. The primary economic impact is a higher recovery of limestone reserves; sustainability of resources, corresponding longer quarry life. Secondarily as the limestone is mined underwater and stockpiled above water, drainage reduces moisture content achieving direct cost reduction on limestone shipping. In addition, a considerable reduction in operational cost was achieved due to a significant decrease in consumption of electrical energy, reduced dragline maintenance costs and reduced dragline movements within the operation. INTRODUCTION Holcim is a Swiss-based global building materials and aggregates company. Founded in 1912, the company expanded into France and then throughout Europe and Middle East during the 1920s. In 1922, Holderbank, as the company was then known, expanded beyond the Swiss borders into France. By the end of the decade Holderbank held stakes in Belgium, Germany, the Netherlands, and Egypt (Holcim History 1912-2012) Positions in Lebanon and South Africa soon followed.. Holder bank later expanded in North America in the 1950’s. In the late 1970s and early 1980s, Holderbank continued its expansion in Latin America, Asia and Spain for the first time. The company expanded into Eastern Europe and experienced a boom in Spanish construction preceding the 1992 Summer Olympics. By 1986, Holderbank was the world's largest cement manufacturer. In the 1990s, the company consolidated its European holdings as the American market drove growth. Expansion into Eastern Europe and Russia continued (Holcim History 1912-2012). In 2001, the company changed its name from ""Holderbank Financière Glaris"" to Holcim (short for Holderbank ciment) (Holcim History 1912-2012). Holcim expanded by purchasing Aggregate Industries entering into the United Kingdom for the first time. That year, the company also expanded into India by acquiring a stakes in The Associated Cement Companies (ACC) and Ambuja Cement Eastern. In 2008, Holcim became the largest shareholder of China's Huaxin Cement with a 40% stake. In 2009, they acquired Cemex Australia. In 2014, Holcim and Lafarge announced they had agreed to terms on a ""merger of equals"" valued at nearly $50 billion in 2015. The new company LafargeHolcim based in Switzerland has a manufacturing capacity of 427 metric million tons a year."

Jan 1, 2017

By Dilip Banerjee

"This paper discusses the Advanced Technology Program (ATP)'s support over the last decade to the development and use of process modeling as a tool to address some of the challenges faced by the U.S. metal casting industries. A particular focus will be given to highlight how process modeling can be used to improve the manufacturability of components needed for high performance and critical applications. The challenges associated with the design and production of thin-walled, cast parts with intricate and complex internal geometries will be discussed. Modeling issues associated with the control of the final grain structure in the solidified parts will also be addressed. This paper will describe the advantages of using appropriate mathematical models for designing new alloys for use in various applications.Finally, the role that ATP has played in uplifting the U.S. technological base through partnerships with industry and academia in high-risk research in order to bring to market new and improved products for the broader benefit of the nation will be discussed.ATP's BackgroundIn the 1980s, U.S. industries were losing market share to low-cost, high-quality manufacturers from Asian countries. Corporate leaders and policy makers determined that in order to sustain and grow market share, U.S. industries needed to improve their competitiveness and productivity through product and process innovation. There was evidence that companies were systematically under-investing in leading-edgetechnologies and failing to complete the development of new technologies [l]. There were also arguments in academic circles that pointed to a potential market failure in the area of early-stage technological developments. These concerns provided impetus for creation of the Advanced Technology Program (ATP) within the National Institute of Standards and Technology through the Omnibus Trade and Competitiveness Act of 1988. Through a rigorously competitive, cost-shared partnership with industry, ATP fosters the development and broad dissemination of high-risk technologies that offer the potential for significant broad-based economic benefits to the United States."

Jan 1, 2004

By R. L. Grayson

For the years 1990 and 1991, West Virginia's underground coal small-mine fatality rate « 20 employees) was approximately ten times higher than the national coal industry rate. Although the total number of fatalities decreased to 17 in 1992 (from 22 in 1991), West Virginia still led ,the nation in coal mining fatals. A team of mining and safety professionals from West Virginia University studied the problem over the past year, interfacing with the Mine Safety and Health Administration and the West Virginia Office of Miners' Health, Safety and Training. A clear path for 'formal intervention was determined and is presented here.

Jan 1, 1994

This status report contains 39 individual reports on health and safety research projects now being conducted or recently completed by the Bureau of Mines. The Reports on health research cover industrial hygiene, respirable dust, ventilation, noise control, and radiation hazards. The safety research reports cover industrial hazards, ground control, fire and explosion prevention, and methane control. Each report includes background information, a discussion of research progress, and an assessment of each project's current status.

Jan 1, 1979

By R. L. Bullock

For the past 30 years there has been a gradual evolution of mechanical excavating systems in underground hard rock mining applications. This paper traces many of the tests of various tools and methods to break hard rock, up to the present. The tools include impact hammers, boring machines, disc on boom mining machines, disc on revolving wheels and drums, picks and drag bits on revolving hubs, rock splitters, slot cutting systems, and with customized explosives/powder mini-blasting. While the progress has been slow, successes are being achieved in hard rock and more opportunities exist today than ever before.

Jan 1, 1995

William R. Walker, assistant to the president of the U. S. Steel Corpn., died at St. Luke's Hospital, New York, on Dec. 20, 1922. He was born at LaPort, Ind., Nov. 26, 1857, and his whole career has been closely identified with the iron and steel industry. His first employment was with the North Chicago Rolling Mill Co., Chicago; then he was appointed chemist for the Crown Point Iron Co., at Crown Point, N. Y.; and later he was works superintendent for Spang, Chalfant & Co., of Pittsburgh. He was early associated with Robert Forsyth, the well-known engineer who constructed the South Chicago works of the North Chicago Rolling Mill Company. Prior to 1890, Mr. Walker was works manager for the Union Steel Co., and upon organization of the Illinois Steel Co. he became general manager of its South Chicago works. At the time of the formation of the U. S. Steel Corpn., in 1901, he was appointed assistant to the president, which position he held until the time of his death. Through the technical staffs and committees of the Steel Corpora tion, Mr. Walker had an excellent opportunity to study and direct the development of mechanical methods for coal mining, coal washing, beehive coking, including the collection and recovery of its byproducts, and to interest himself in byproduct coke ovens, and the design and operation of processes for the coking of special coal mixtures. He also brought his experience to bear on the design, construction and operation of the blast furnace and its appurtenances, as well as the bessemer, open-hearth and electric steel processes. Incidentally, he was interested in microscopy and metallography, and was familiar with the manufacture of products related to the iron and steel industry, such as tin, zinc, sulfuric acid and many other substances. Mr. Walker had the remarkable faculty of being able to discuss and conduct investigations in practically any technical branch of the ferrous industry. In the words of President James A. Farrell, "Mr. Wdker was a man of keen mental attainments and possessed an exceptional knowledge of the iron and steel industry, from both the scientific and the practical

Jan 1, 1923

William R. Walker, assistant to the president of the U. S. Steel Corpn., died at St. Luke's Hospital, New York, on Dec. 20, 1922. He was born at LaPort, Ind., Nov. 26, 1857, and his whole career has been closely identified with the iron and steel industry. His first employment was with the North Chicago Rolling Mill Co., Chicago; then he was appointed chemist for the Crown Point Iron Co., at Crown Point, N. Y.; and later he was works superintendent for Spang, Chalfant & Co., of Pittsburgh. He was early associated with Robert Forsyth, the well-known engineer who constructed the South Chicago works of the North Chicago Rolling Mill Company. Prior to 1890, Mr. Walker was works manager for the Union Steel Co., and upon organization of the Illinois Steel Co. he became general manager of its South Chicago works. At the time of the formation of the U. S. Steel Corpn., in 1901, he was appointed assistant to the president, which position he held until the time of his death. Through the technical staffs and committees of the Steel Corpora tion, Mr. Walker had an excellent opportunity to study and direct the development of mechanical methods for coal mining, coal washing, beehive coking, including the collection and recovery of its byproducts, and to interest himself in byproduct coke ovens, and the design and operation of processes for the coking of special coal mixtures. He also brought his experience to bear on the design, construction and operation of the blast furnace and its appurtenances, as well as the bessemer, open-hearth and electric steel processes. Incidentally, he was interested in microscopy and metallography, and was familiar with the manufacture of products related to the iron and steel industry, such as tin, zinc, sulfuric acid and many other substances. Mr. Walker had the remarkable faculty of being able to discuss and conduct investigations in practically any technical branch of the ferrous industry. In the words of President James A. Farrell, "Mr. Wdker was a man of keen mental attainments and possessed an exceptional knowledge of the iron and steel industry, from both the scientific and the practical

Jan 1, 1923

By J. F. Brand, J. C. van Dyk, F. B. Waanders

"Syngas from Africary’s Theunissen underground coal gasification (UCG) project will be used for power production and synthesis of liquid fuels and commodity chemicals. However, some of the coal components, especially condensable water, oils, tars, inorganic trace elements, and a small fraction of fly ash and particulate matter, make their way to the surface via the production well and can cause adverse impacts on downstream processes. Africary’s standard design incorporates a cold gas clean-up system that relies on relatively mature techniques based on highly effective wet scrubbers and acid gas removal (AGR) systems such as Rectisol®, but with the downside of low energy efficiency and waste water generation. In this paper, novel technologies for removing contaminants and species separation from the hot (T > 300°C) raw syngas are compared. Comparisons are made between supersonic gas separation (SGS), Ranque–Hilsch vortex tube (RHVT), vortex gradient separation (VGS), and inertia vacuum filtering (IVF), and a vortex-based gas separation concept is proposed for UCG applications. IntroductionImpurities in gasification feedstock (coal, biomass, waste, etc.), especially sulphur, nitrogen, chlorine, and inorganic mineral matter, often end up in the syngas and can cause adverse impacts on downstream processes. Africary’s standard design incorporates a cold gas clean-up system that relies on relatively mature techniques based on highly effective wet scrubbers and acid gas removal (AGR) systems such as RectisolR, SelexolR or aMDEAR; but with the downside of low energy efficiency and waste water generation.Hot (T > 300°C) gas clean-up technologies are attractive because they avoid cooling and reheating of the syngas stream. Some available warm gas cleaning technologies include traditional particulate removal devices such as cyclones, candle filters, membranes, and molecular sieves. The warm gas desulphurization process technology developed by RTI LLC (2018) requires hot syngas to remove sulphur and has become commercially ready. Many other hot gas cleanup systems are still under development, given the technical difficulties caused by extreme environmental and operating conditions."

Jan 1, 2018

By J. E. Hamak

This publication contains analyses and related source data for 151 natural gas samples from 19 States. Of the total samples, 138 were collected calendar year 1989. The remainder were collected earlier, but releases to were not received until 1989. All samples were obtained and analyzed as part of U.S. Bureau of Mines investigations of the occurrences of helium in natural gases of countries with free market economies. This survey has been conducted since 1917. The analyses published herein were made by mass spectrometer and chromatograph.

Jan 1, 1990

By S. J. Hemberger, F. W. Lee, J. H. Swatz

"INTRODUCTION This investigation was undertaken in 1939 for the purpose of securing the necessary information relating to the field techniques and accuracy that would be needed for magnetically surveying State-wide areas. The Florida,peninsula was chosen for such a study for two reasons: First, because it is geologically ideal for such an investigation, since it comprises a series of unconsolidated, flat-lying Tertiary and Cretaceous sediments of low magnetic susceptibility covering a complex and much-folded crystalline basement comprised of rocks carrying strongly -paramagnetic materials; second, because information concerning the structural trends of the crystalline basement would be of great interest and Importance in the study of Appalachian orogeny and the relationship of the Florida Peninsula to both the Appalachian and Antilleantectonte systems. The results of this magnetic survey have clearly demonstrated that the magnetic anomalies reflect variations in the crystalline a basement. To the degree which the structures of the crystalline basement control the structures of the overlying sediments these results are useful for oil exploration.MAGNETIC OBSERVATIONSAll magnetic measurements were made with a vertical Aekania magnetic variometer having a temperature compensated needle. All observations were tied into two base stations located at Fort. Myers and Gaineeville, Fla. The absolute vertical magnetic intensities at these two bass stations were determined by the United States Coast and Geodetic Survey within an accuracy of + 10 gammas. The accuracy of the base station variometer used in the present survey was of the order of ± 3 gammas. The sensitivity throughout the survey of the magnetic variemoter used on the traverses approximated 30 gammas per scale division and it is estimated that the probable error between stations along a traverse would be about + 5 gammas. Measurements were started on traverse C near Fort Myers and tied into the Fort Myers base station established by the Coast and Geodetic Survey. Twelve traverses, comprising 1,500 station observations, wore occupied between the Fort Myers and Gainsville base stations. When the cumulative total of these 1,500 interim observations was tied into the Gainesville base station it was found to differ by only 30 gammas from the value obtained by the Coast and Geodetic Survey for that base. The observations were adjusted for this difference."

May 1, 1945

By Robert B. Parsons

"Canada's mining industry has reason to celebrate the federal government's budget which was tabled on February 26, 1986. The budget contains an important proposal to improve the flowthrough share rules by effectively eliminating the investor's liability to third parties. This proposed rule change and other important budget proposals are the subject of this month's edition of Tax Notes. IntroductionWhile Finance Minister Michael Wilson's February 26, 1986 budget received a mixed reaction from business and labour leaders, the budget was mainly ""good news"" for the mining industry. A long-standing bugaboo in the flow-through share rules will be cleared up, a permanent set of rules will be installed for the tax treatment of Northern allowances, and limited partnerships will apparently be able to continue to serve a useful role in financing exploration programs. Flow-Through SharesThe present rules which apply to an investment in flow-through shares are structured in such a way that the relevant Canadian exploration expense (""CEE"") must be incurred by the investor, and not by the issuing corporation. Obviously, in the case of most flow-through share issues, this requirement that the investor incur the CEE poses a practical problem-the investor typically does not have the expertise or organization to incur the CEE. As a result, an integral part of most flowthrough arrangements is an agreement whereby the investor appoints another party (usually the issuing corporation) as his agent to spend the flow-through funds on CEE on his behalf. Although the issuing corporation might consequently be the party which actually spends the flow-through share funds on CEE, nevertheless the legal structure is such that the investor is the ""principal"" who is incurring the CEE. As such, the investor is legally responsible for any third-party claims with respect to the exploration program. Third-party liability might arise, for example, in the case of property damage, personal injury, environmental infractions, and so on."

Jan 1, 1986