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By Pierre Choquet

"The whole work carried out both in situ and in laboratory by a research group of the West German collieries is presented. This work has led to a design method of steel arch supports for gate roadways that gives full satisfaction in this particular coalfield. The method accounts for mining depth, the mining system (advancing or retreating), thickness of the coal seam and other parameters.Full statistics are then given on gate roadway supports of the ECCS (European Community for Coal and Steel) coalfields. They were collected by the author in order to show that the West German method can be applied to other coalfields as the long wall systems which are generally being used are very similar. Design calculations are conducted for each coalfield's case. They show that the method would have been able to predict in most cases the support actually used.Utilization of the design method is recommended to the Cape Breton Development Corporation 's mine operators because mining conditions, even though different from European ones, present a number of similarities which make it possible to apply the design method to their particular case.This procedure might be profitable in mines facing support problems in their levels and for any planning of future projects"

Jan 1, 1986

By B. M. Das, F. Claridge, V. K. Garga

Coal, as well as a large part of other minerals in Canada, is produced by surface mining methods. This has resulted in short and long-term accumulation of waste rock in dumps. Two main problems arise from the flow of water through these dumps: stability of dumps and the impact on stream flows. In recent years, a number of mines have started placing waste rock in valleys for general disposal or far constructing mine access road ways. All these have created challenges in the following areas: effective design of dumps and flow-through dams; stability monitoring of the structures; environmental impacts downstream by way of increased amount of fines in suspension, sedimentation, and toxic substances; and long-term status of flow and flood. Similar situations also exist in many civil engineering structures. This paper discusses the status of rock drains and the immediate and future research needs.

Jan 1, 1990

By Roger Lafrance

"This paper discusses various aspects affected by the use of large-diameter boreholes in underground mines. Topics covered consist of noxious fumes, vibrations, post-blast effects, various types of explosives, the cordine system in production blasts, the slider primer system and wall-control methods. In general, the paper is an overview of this important fact of underground mining.IntroductionWith economical factors leading the way, many reasons motivated drilling equipment companies to develop equipment that can drill holes up to eight inches in diameter and even larger for underground applications. One of these other reasons is the fact that many orebodies were considered marginal, given the high costs of conventional mining methods utilizing small diameter boreholes. With these criteria in mind, accelerated programs were put in motion to develop equipment that would reduce both-development and production costs in underground mines. Change s in any basic program often affect other areas down the line. This is particularly true with the ad vent of large-diameter boreholes underground.C-I-L Inc. is certainly no stranger to this phenomena. Whether production headings increase in size and tonnage or whether production increases due to lower costs, one fact remains unchanged and that is the fact that all development and production holes are loaded and blasted whether they be of small or large diameter. Due to this fact, C-I-L Inc., as a leading explosives manufacturer, initiated a program to examine blasting methods in use in surface work with the intent of revising these method s for underground applications. Research facilities were also oriented toward developing appropriate products. This was a task that was accepted with anticipation, with the result that many new blasting systems and methods were brought forward, thanks to the collective efforts of both the consumers and manufacturers."

Jan 1, 1984

By H. N. Tran, D. Barham

"A systematic survey of the appropriate literature in terms of phase equilibria and possible reactions involving deposits in Municipal Solid Waste (MSW) incinerators are analyzed particularly with respect to the theoretical first melting points of typical ashes and the possible presence of a liquid phase at the temperature of ash-metal interface. Conclusions are drawn on the basis of the possible presence or absence of various metal chlorides and sulphates in such situations, and their effects on the problems of fouling and metal corrosion. From preliminary results, it would appear that ZnCl2 is unlikely to be present in any molten phase which causes corrosion because it evaporates rapidly from such liquids. It would also appear that PbCl2 and, by inference, ZnCl2 will sulphate at relatively low temperatures if the flue gas contains SO2 and O2.IntroductionMunicipal Solid Waste (MSW) incinerators produce fly ash which deposits on heat transfer surfaces throughout the furnace, leading to corrosion and loss of energy recovery efficiency. Despite a massive amount of research carried out on the subject of corrosion in MSW incinerators, the problem of corrosion of heat transfer metal is still with us, and no definite over-all cause and effect relationship has yet been identified. In order to make a contribution to the eventual solution of this problem, the authors have examined the problem from the beginning, using their knowledge of fouling and corrosion problems in black liquor recovery boilers as a starting point.The incineration of MSW has been used for many years to reduce the volume of material sent to landfill (ash volume compared to raw waste volume), and, in most cases, to recover energy at the same time by raising steam The steam may be ""low- or high pressure/ temperature"" depending on its end use. The higher the steam pressure and temperature, the greater seem to be the problems with corrosion of heat exchanger metal, presumably because the metal must withstand higher surface temperatures.The chemical and physical composition of MSW is extremely variable, not only on a regional basis, seasonal basis, and day-today basis, but also on a minute-by-minute basis, due to the inhomogeneity of MSW. This makes it extremely difficult to define cause and effect relationships, because both cause and effect are transient in nature."

Jan 1, 1991

By Elma van der Lingen

Gold is considered the most inert of all metallic elements, but the metal can show catalytic activity when prepared by specific techniques. Preparation techniques being used to prepare gold catalysts systems mainly involve precipitation methods incorporating gold compounds or complexes. This paper introduces a totally different method for the preparation of gold-based heterogeneous catalysts that can be used for oxidation and reduction reactions, as well as electrocatalysts. The method involves alloying of gold with a less noble metal, such as aluminium, to form a gold-containing intermetallic precursor. AuAl2 was produced by melting gold and aluminium together in a vacuum arc furnace under a protective atmosphere. The aluminium is then dissolved from the AuAl2 precursor by means of NaOH to produce a highly porous gold structure. The paper also reports on a method of incorporating transition metal oxide(s) with the porous gold to form an active heterogeneous catalyst. Promoter elements can also be melted with AuAl2 to improve catalytic activity. Alloying has the advantage that the promoter element can be in contact on atomic level with the gold. In-situ xray photoelectron spectroscopy (XPS) studies have also been done on the porous gold catalysts to further clarify the CO oxidation mechanism on gold-based catalysts.

Oct 1, 2003

By R. E. Molnar, P. A. Riveros, V. M. McNamara

"This paper describes some recent research done at CANMET in the areas of ion exchange and A VR (Acidification- Volatilization Reneutralization), as applied to the recovery of gold and cyanide, respectively. It also discusses the ways in which these two technologies may be combined in order to minimize the environmental impact of gold milling operations and optimize reagent usage. IntroductionGold milling operations can essentially be divided into those that carry out a liquid/solid separation after leaching and those that recover gold directly from a leach pulp. The former produce a barren solution which may contain considerable amounts of cyanide, either free or cornplexed with metals. The latter produce a similar solution but this is now part of a slurry rather than a clear stream. Due to its toxicity, any excess cyanide must be destroyed before the effluent is discharged into the environment. Ideally, this should be (and sometimes is) accomplished by natural degradation. However, in many cases natural degradation alone cannot remove the last traces of rnetallocyanide compounds from the effluent and , as a result, most Canadian gold producers utilize a supplementary chemical oxidation system. This not only increases the operating costs, but concerns have also arisen in recent years about the formation of ammonia as a result of the chemical oxidation of cyanide (via CN--CNO--HCNO-NH3) ·"

Jan 1, 1993

By Gary Hawthorn

"Laboratory testing, by Lakefield Research determined that, in spite of the relatively high pyrite content of the Golden Rose (GR) orebody, it would respond well to gravity concentration followed by either direct cyanidation or cyanidation of a flotation concentrate.Economics favoured the former choice which became the adopted process flowsheet.During the latter stage of the feasibility study, the Dekalb 500 tpd copper flotation mill became available in the Highland Valley of British Columbia. This plant was purchased by Emerald Lake Resources, and was moved to the Golden Rose minesite.The crushing and grinding circuit were retained and the original flotation circuit was replaced with a 400 mtd gravity plus cyanidation circuit. The plant commissioning commenced in August 1987, and by early September was processing 300 tpd.HistoryThe Golden Rose Mine was operated by Cominco during the period 1935 to 1941 processing 146000 tons grading DAD oz/t Au at a rate of 110 tpd .The process flowsheet consisted of gravity plus amalgamation followed by cyanidation.Metallurgical TestingThe underground mining areas were below the level of Emerald Lake, and had flooded on abandonment in 1942.Samples for metallurgical testing were collected from exposed faces underground once the mine had been dewateredin 1984.In spite of the anticipated high pyrite content of the ore samples, it was apparent from the success of the previous operation that the pyrite did not interfere with the gold recovery.Laboratory testing, at Lakefield, determined that, from a technical perspective, two metallurgical options existed, as shown in Tables I and 2.Note that the very high pyrite content of the ore precluded the possible direct marketing of concentrate. The process flowsheet, therefore, had to contain a cyanidation circuit for the operation to succeed financially.Although the anticipated metallurgy was excellent with either option, the 2.1 % increase in gold recovery with the gravity plus cyanidation option made this the clear choice."

Jan 1, 1989

By R. E. G. Caines, P. Alport

"Operating heavy equipment in Labrador, where the winters are 8 months long and the temperature frequently drops below -40°F (-40°C) for days and sometimes weeks presents unique problems in both the operation and maintenance junctions. Winterization programs must be well designed and implemented at the proper time. These programs must include the proper selection of fuel oil, engine oil, hydraulic oils, greases, cooling system fluids, etc. More often than not, modifications have to be made to the original equipment in order that it can be operated safely and economically in the Canadian North. Manufacturers usually design equipment for a less harsh environment and the user makes adaptations by trial and error.Operators have to be trained for the proper operation on ice- and snow-covered roads in an open-pit mine. Special emphasis must be put on haulage road conditions. In this paper, the authors will cover some specific maintenance procedures, equipment modifications and operator training problems experienced by the Iron Ore Company of Canada in its open-pit operation in Labrador.IntroductionT he Iron Ore Company of Canada is engaged in open-pit mining , concentrating and pelletizing of iron ore. The company operates in two provinces, Quebec and Newfoundland (Fig . 1) . The Knob Lake operation "", based in Schefferville, Quebec, has mine sites located both in Labrador and Quebec . The Caro l Lake Project is situated in Labrador, 25 kilometres east o f the Quebec border at Labrador City. The Carol operation mines, concentrates and pelletizes it s o re before rail transportation to the seaport o f Sept-lies via the Quebec North Shore and Labrador Railway."

Jan 1, 1984

By Y. Lizotte

"This paper examines the application of blasthole sloping to narrow vein mining in Canada, for ore deposits where widths are less than two metres. While the technique has now been utilized for more than ten years, it remains in the experimental stage and on-site testing is necessary for its adoption at new mining operations or in differ¬ent geological settings. It is intrinsically a safer method than other narrow vein methods in current use.The investigation describes the main operating parameters for mines recently surveyed. The criteria for method applicability are defined and the problems encountered are studied. It is concluded that blasthole sloping for narrow vein mining is a viable modern method which promises to gain popularity and that emerging fragmentation technology and blasting research can be used to further increase applicability of the stoping method."

Jan 1, 1991

By Daniel Hodouin, Robert Lanthier, Yve Dube

"A procedure f or constructing a grinding mill dynamic model is proposed. This model is used in a dynamic simulator of are grinding circuits. The simulator is designed for flexible flow sheets involving different grinding mills and particle classifiers and is able to accept several single variable PID control loops. The dynamic model is validated on a laboratory ball mill, and calibrated to an industrial installation. The simulator is used for characterization of grinding circuit dynamic behaviour and tuning of control strategiesIntroductionThe ore grinding operation is a critical step of the ore preparation process because it is the last comminution stage before the separation of minerals. The properties of the ground minerals to be concentrated, control the quality and efficiency of the separation process. This is why it is important to control properly the operation of the last grinding stage, commonly constituted of a closed circuit ball mill with classifier . To provide an adequate fine product, the grinding operation should compensate for the perturbations of the feed characteristics (size analysis, grindability, etc.). The main objective is to maintain a constant size distribution for providing stable operating conditions to the separation units. Simultaneously another usual objective is to operate the grinding circuit at a maximum capacity.Automatic control applied to grinding circuit s is the appropriate approach to improve its operation. Most frequently average optimal operating conditions are determined from steady -state performances of the circuit , and the automatic control is used for stabilizing the operation at selected values of the process variables . In the traditional approach, one or several single input! single output (SISO) control loops are implemented and empirically tuned. Advanced control practices'!' are based on a quantitative analysis of the circuit dynamics, which could also give a basis for the tuning of conventional SISO 100ps(2)."

Jan 1, 1987

By John Hartlen

"The 19th century was an ""age of gold"" and Nova Scotia experienced its share of early gold rushes. Gold mining activity in the province was focussed into three ""rushes"" which occurred, approximately, in the 1860s, 1890s and 1930s; a total recovery of 1.1 million oz. Au has been recorded. The purpose of this note is simply to chronicle the technical development of gold mining and processing in the province and to comment briefly on the recently renewed interest in this precious metal. The first public discovery of gold in Nova Scotia was made by a farmer in 1860 at Old Tangier or Mooseland, and this find sparked the province's first gold rush. The mining and milling methods of the 1860s were ingenious. Initially, arrastras, crude stone-hewn grinding mills, drawn by men, mules or horses, were widely used. Nova Scotia's first conventional stamp mill was installed at Mooseland by 1862; it was comprised of four wooden stamps and is believed to have been imported from Scotland. One of the largest waterwheels of the 1860s, reportedly 16 feet in diameter and 8 feet wide with a SO-horsepower rating, was used in the Renfrew Gold District to drive gold stamps. Steam power was also employed, and many of the engines were of native construction, as was the unit at Waverley's Lake Major Company, which had a piston 1 foot in diameter by 12 feet long and was connected to a 16-ftdiameter flywheel."

Jan 1, 1999

By D. G. Osborne

"The paper describes current 'tools' available to the coal preparation engineer for carrying out the evaluation of data, process design, selection of equipment and layout and design of coal preparation plants.Laboratory and pilot-scale equipment is widely available and test data can be used to provide valuable design information regarding capacities and sizing for specific applications. Pilot plants, unless they fit closely to the basic design envisaged for the eventual commercial plant, C(In often provide only limited useful information.Computing aids such as equipment simulation, plant modelling, etc. are becoming widely applied for establishing design criteria and investigating flowsheet options . Other computer tools such as computer-aided design systems are taking over some of the time-consuming tasks of detailed layout and design and estimation of quantities, etc. and providing the means for detailed examination of more than a single option.Besides computer modelling there is also physical modelling of plant buildings, plant sites and entire proposed mining areas; the former can be especially useful in finalizing design and threading' pipework and electrical reticulation systems through the plant without the resultant risk of impairment of flow, obstruction or wastefulness. Not the least of the benefits of plant models is the assistance provided for training new operating and maintenance staff."

Jan 1, 1985

By J. M. Harrison

"The Nor-Acme gold mine is near the shore of Snow lake, northern Manitoba, about 75 miles east of Flin Flon. The claims that form the nucleus of the present property were staked in 1927 by C. R. Parres, but it was not until 1941 that diamond drilling disclosed the potentialities of the deposit. In that year a large-scale drilling programme was begun under the direction of F. Ebbutt, of the Howe Sound Exploration and Development Company. Two orebodies were outlined containing about 5,000,000 tons of ore assaying $5.25 in gold per ton. In August, 1945, construction of the mining plant was begun.All information and interpretations contained in the following brief description of the deposit were obtained from surface mapping.GEOLOGYThe ore lies at the contact between a coarse, basic, pyroclastic rock, which is the hanging-wall, and grey, acidic lavas and sediments, which form the footwall. These rocks are cut by irregular basic intrusions that vary in composition from diorite to hornblendite, and by small acidic dykes . Tourmaline is locally common in the hanging-wall rock near the ore.The ore occurs in brecciated, silicified, and ·slightly carbonatized rock. Arsenopyrite is the main sulphide and the gold is associated with it. Pyrrhotite is locally abundant and minor pyrite, chalcopyrite, sphalerite, galena, and cubanite have been noted. Two orebodies are known, the Dick and the Toots. The Toots, which is much the smaller of the two, is about 1,000 feet west of the Dick."

Jan 1, 1954

By A. McLean, D. K. A Donyina, R. S. Segsworth

"Various aspects of processing ferro-manganese fines generated during the crushing of standard ferro-manganese have been studied in laboratory-scaleplasma furnaces. These laboratory furnaces are based on the use of conventional graphite electrodes rather than water-cooled non-consumable torch devices. The reactor system has separate, distinct zones for pre-healing, melting and smelting. This unique feature assists in the removal of undesirable elements from the molten alloy. Ferro-manganese alloys containing over 82% manganese, 0.004% sulphur, less than 0.01% silicon, 0.006% nitrogen, 0.001% oxygen and 0.0006% hydrogen have been produced from the offgrade ferro-manganese fines.IntroductionThe major application of manganese is as an alloying additive to numerous metals such as steel, aluminum, copper and magnesium. Manganese is mainly consumed in the ferrous industry in the form of ferro-manganese and silicon-manganese, or in its pure state as electrolytic manganese when certain impurities inherent in the manufacture of ferro-manganese and silicon-manganese alloys must be avoided. Before being sold on the market, ferro-manganese is crushed and during this process alloy fines are generated. Due to the nature of the casting process, the fines produced are contaminated with silica sand. In addition, due to segregation effect s, the pho sphorus content of the alloy fines is higher than that found in the bulk of the material produced. Because of the smaller particle size and the higher impurity content, there is only a limited market available for the alloy fines. For this reason, there has been increasing attention directed toward the development of processes for recycling fines through the conventional smelting furnaces. The fines may be charged to the furnace either directly or after agglomeration. The detrimental effects of charging the fines directly include:(1) decrease in gas permeability, causing irregular gas flow;(2) increase in the amount of dust produced;(3) packing and bridging; and(4) intensive reactions due to sudden flow in hot zones."

Jan 1, 1982

By Barry James

"This paper discusses past and current energy use patterns in the mining and manufacturing sectors of the industrial minerals industry. Information is presented on the primary energy input types as purchased by the industry, the quality and form of the energy actually required by the various production processes, and the residual form of this energy, either embodied in the product or rejected in gaseous and liquid waste heat streams. With the continuing concerns about the availability of energy combined with the rapidly increasing cost of energy as a production input, the reduction of energy usage through improved efficiency will undoubtedly be an increasing priority for the industry during the 1980s. Reduced energy consumption through investment to improve energy efficiency appears to be advantageous from both the corporate and national perspectives.IntroductionEnergy, like labour and materials, is one of the basic production input s to the various mining, processing and manufacturing production stages in the industrial minerals industry. Energy costs, as a percentage of total production costs, have been well above the average for industry in Canada, accounting for more than 50 cents out of every dollar in the most extreme cases. Consequently, energy has always been a relatively important management concern in the industrial minerals industry.The energy supply and price situation in Canada and internationally has been changing rapidly since 1973, following a long period characterized by declining real energy prices and an abundance and wide choice of energy supplies. It is generally accepted that energy prices will continue to increase rapidly, and that there will be uncertainties about the long-term continuity of supply of some energy types. In essence, a period of relative stability has been replaced by a period of relative uncertainty. In such a changing situation, a reassessment of the role of energy as a production input is appropriate.The following sections outline some of the effects of the changing energy scene on the industrial minerals industry. These effects are dealt with primarily in terms of energy costs, because, in most circumstances, a change in the cost of energy as a production input is the end result of both energy price and energy supply changes."

Jan 1, 1981

By w. w. Fraser

"In late 1985, Hudson Bay Mining and Smelting Co., Limited announced the Namew Mine/Mill project. Environmental baseline monitoring and planning began in early 1985 while a major drilling program was under way to delineate the ore deposit. This paper overviews the environmental assessment work conducted for the mine/mill operation, and outlines the tailings and water management practices.Planned environmental works and approach were affected in late 1988 when a massive water problem was encountered in the mine. The requirement to depressurize the rock surrounding the underground workings led to the need to develop, on short notice, an environmentally-acceptable procedure to dispose of a large volume of slightly-saline water.Biological toxicity tests performed on the depressurized effluent proved the effluent to be non-toxic and thus allowed resolution of the disposal problem. This resolution includes the conversion of a large water body from native fish species to a rainbow trout fishery."

Jan 1, 1991

By S. R. McCutcheon

"The regional stratigraphy of the Lower Carboniferous Windsor Group in the Moncton Subbasin indicates that evaporites could be present in the Marysville Subbasin, part of what was formerly called the Central New Brunswick Platform. The Windsor Group consists of basement-fringing, algal build-ups (Gays River Formation), in places with intercalated siliciclastics (Parleeville), which are laterally equivalent to deeper-water, very thin to thinly bedded, euxinic limestone (Macumber). The Macumber is overlain by stratiform, nodular to mosaic anhydrite (Upperton) that is hosted by carbonate or calcareous siliciclastics. The sulphate also is equivalent, in part, to the algal buildups. Deep-water salts (Cassidy Lake) which overlie and in places are laterally equivalent to Upperton rocks have a basincentre distribution. The Windsor Group is overlain by shallow water evaporites and mudstones (Clover Hill) or by greenish grey mudstone (""transitional beds""). The paleogeographic distribution of these rocks provide important clues that help predict where deposits of salt and potash can occur.IntroductionCurrently there are three known potash deposits in southern New Brunswick (2, 3 and 4, in Fig. I). All three deposits occur in the Windsor Group of the Moncton Subbasin, but until recently their exact stratigraphic position within the group was not known.The Windsor Group is a cyclic sequence of carbonates, evaporites and red beds that is up to 1.0 km in thickness (Schenk 1969, p. 1038). It is Late Mississippian (Visean) in age and the type area is near Windsor, Nova Scotia. The group was named by Dawson (1873) but the rocks were described earlier by Hartt (1867). Dawson (ibid.) was the first to assign rocks in southern New Brunswick to the Windsor Group."

Jan 1, 1983

By Yve Potvin, Fabien Miller, Deni Jacob

"The potential benefits of measuring the volume of excavated open stope are enormous. By comparing the actual excavation of the orebody contour, it is possible to determine the “real"" amount of mining dilution, as well as the ore left in place. Noranda Technology Centre (NTC) has developed a stope survey system that allows for rapid and efficency measurement of underground excavation volumes. The system comprises a commercial laser (EDM), a set of lightweight rigid rods, an automated scanning device, a hand-held data logger and Autocad-based software for volume calculation and drawing manipulations. This system is an invaluable tool for the optimization of mining practices and could also be used for the delineation of caving areas. IntroductionDilution is the most common and devastating mine disease. In some instance s it could systematically cripple the profitability of an operation, and in more extreme cases, it could become a terminal disease. The Northern Miner Journal (1988) reported that many operations have closed because of uncontrolled dilution, before they even completed their first year of production. Other studies (Pakalnis, 1986) have shown that approximately 40% of all underground operations have more than 20% dilution. Considering that every ton of dilution costs in the neighbourhood of $25, the total direct cost of dilution to the Canadian mining industry may easily exceed one hundred million dollars per year.The dilution problem has been a major concern to Noranda Minerals for some time and in 1984 a comprehensive geomechanics research program was created at the Noranda Technology Centre (NTC) in Pointe-Claire, Quebec. New empirical stope dimensioning techniques, improved cable bolting techniques and sophisticated ground control instrumentation projects (among others) contributed to improve the situation at Noranda.A new tool which can have a very significant impact on the ""war"" against dilution is being developed by the Noranda Technology Centre. The laser stope survey system allows for a rapid, precise and efficient measurement of underground excavation volumes. By comparing the excavation planned with the volume excavated, it becomes possible to determine the ""real"" amount of mining dilution as well as the amount of ore left in place. This system may also allow for early detection of a dilution problem. As with other diseases, early detection provides the best chance for a fast and total recovery."

Jan 1, 1992

By Robert B. Parsons

"Originally intended to be implemented in 1977, but actually introduced effective May 6, 1974, the earned depletion regulations have been substantially refined and modified since their appearance on the Canadian tax scene, so that this important legislation now consists of a highly complicated set of rules which even the most astute follower of tax law has considerable difficulty sorting out!This month, Tax Notes attempts to cut through this bewildering array oj regulations, in reviewing the main features of the earned depletion allowance applicable to mining operations. Despite the phase-out of earned depletion allowances for most oil and gas operations as part of the federal government's new National Energy Program, earned depletion provisions are still alive and well for the mining sector, although they might well be slowly strangling to death in their own entanglement of complexity!"

Jan 1, 1981

By Karl J. C. Harries

"The following is an outline or check sheet of some things that might be looked at when considering the concept of a royalty or royalty provisions. It is not intended as a guide to what is right or wrong (that is for the parties to decide). It does not replace the discussions in this work and is not intended to be a complete or exhaustive compilation of matters to be considered. It presumes that you are familiar with the basic concepts of royalties and has been included as an aide memoire only. Use it as such, with caution and common sense, and amend it to suit your needs. Remember also that brevity can result in inaccuracy or imprecision. This is a danger in many points below.The section references are for the sections where the matter is the main subject of the section – see the index for other sections.Royalty TypesNet Proceeds [§§ 5.8.; 11.4.]• No accepted or understood meaning within industry.• Literal meaning, if not defined, would imply “net operating profit”.• Often defined as net profit with revenue base of proceeds from sale of product.• Should not be used without detailed and clear definition. Net Operating Profit [§§ 5.8.; 11.4. – referred to only]• Net profit without recoupment of pre-production expenditures.• Revenue base: usually proceeds from sale of product.• Operating costs deductible.• Some reserves may be permitted.• Recoupment of some post-production capital expenditures may be permitted.• Not often seen as basis for royalties in Canada."

Jan 1, 2003