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By L. Ferland, D. LaRonde, J. C. Caron

"The free-world production of columbium ore concentrates has doubled in the last five years. St. Lawrence Columbium and Metals. Corporation has contributed largely to this expansion, its production rate increasing from 720 tons of concentrates per year in 1961 to 2 200 tons in 1965.To follow the normal market development, the Company initiated an engineering study aimed at establishing the most economical mining methods, thus permitting it to increase its milling rate from 1,000 tpd in 1964 to 2,000 tpd in 1967 and possibly to 3,000 tpd in 1968. The results of this study pointed out the advantages to be gained in converting from an open pit to an under-ground operation. This paper describes how the mining engineering department has successfully developed ""stopes"" from the walls of its No. 2 open pit, in order to assure continuity of its operation during the interval required to develop its underground mine."

Jan 1, 1967

By H. J. McQueen

About 1973 the abrupt decrease in crude oil shipments due to political action by Middle Eastern suppliers, caused a shortage and a steep price rise. In response, Canada had to develop strategies of diminishing consumption and increasing production in both traditional and environmentally friendly resources. To clarify the situation in Canada, there are brief histories of energy (discovery, pipelines), manufacturing and science development, 1800-1970. Energy strategies, both nationally and in Quebec, succeeded in curbing consumption and in expanding production while fostering research in renewable sources. The industry-sector committees provided free exchange of conservation techniques through the federal energy ministry, with progress reports issued annually. Pipeline history in North America is reviewed along with manufacture and construction plans in Canada. Considerable success in all the aspects provided long lasting benefits, but after the embargo was lifted, many research initiatives were gradually abandoned for political reasons. Sustainability is the goal; society must conduct conserver analysis, legislation and action to enhance it.

Jan 1, 2015

By S. Averill, B. Schreiner, V. Sopuck

The La Ronge. Kisseynew, Glennie Lake and Flin Flon domains. the main focu for gold exploration in the southeast part of the Saskatchewan Shield, were subject to continental glacial ice advances from the northeast during the Quaternary. Based on forty-four auger hole along with surficial mapping, the general Quaternary stratigraphy in this area is observed to be composed of a lower till unit , an overlying stratified unit of glaciofluvial sand and gravel and/or a glaciolacustrine silt-clay unit. an upper till. and an upper tratified unit. The lower till is commonly found throughout the geological domains except where it has been eroded in glaciofluvial or fluvial channels. Glacial Lake Agassiz fo rmerly covered most of these prospective domains. The lacustrine deposits associated with the lake impede surficial geochemical surveys including soil. lake sediment. and biogeochemical surveys. The approximate extent of clay cover can be predicted from beach elevations. For instance. in the Waddy Lake area. clay i not known to occur above about 1,400 feet (425 m) elevation. Exploration techniques are hampered by clay in at least one third of the volcanic belt. Thi s influence is indicated by the fact that nearly all gold prospect found to date are located above 1,400 feet (425 m) while the area of clay cover is vi rtually unexplored. The upper till i related to a minor ice readvance. This till is the medium often sampled during soil surveys in the area . lts value as a geochemical ampling medium is dependent on the extent of erosional contact with bedrock highs on the lower till. Those areas which are relatively free of lacustrine and fluvial deposits are those where surface geochemical methods work best. In the Waddy Lake volcanic belt approximately 25-50% of the area may be suitable for surficial surveys. The area of the Star Lake prospect occurs above the 1,500 foot (460 m) elevation and was not covered by Lake Agas iz. The effectivene of till sampling as a surface sampling medium was tested in those areas above the clay level. Till orientat ion surveys were carried out at the Star Lake property and the Tower Lake prospect (Waddy Lake area) within the La Ronge Domain . Gold grain counts and analy es of heavy mineral concent rate from 7 kg surface ti ll samples were used to delineate dispersion trains down-ice from mineralization. In addition, the clay fraction and a 30 g (-80 mesh) subsample from the same till sample, were analyzed for gold . In the Star Lake area, ice direction is subparallel to the strike of several narrow northeast trending auriferous structures. arrow dispersion trains down-ice from known

Jan 1, 1986

By M. F. Goudge

This paper is intended to call attention to the manifold uses of limestone in industry; to indicate the types of limestone desired by some of the large consuming industries; and to give some information on the resources of limestone in Canada, so that an idea may be obtained of the present and future possibilities for limestone production. The word limestone is used in the usual broad sense to include both high-calcium limestone and the highly magnesian variety known as dolomite, as well as all intermediate types. Lime is simply calcined limestone, and in this general paper its uses have been included with those of raw limestone. It is of interest, in dealing with this subject, to glance back over the early history of the utilization of limestone, for by so doing we see that limestone has been of importance to mankind since the beginning of civilization and has contributed in no small measure to the development of a number of the arts and sciences. One of the first uses, if not the first use, of limestone was in connection with the making of lime for plastering purposes. This use antedates civilization. In the day of the ancient Greeks and Romans, the art of plastering had been brought to a state of perfection that is not nearly approached by the modern artisan.

Jan 1, 1930

By Janos de Warga

"After a short introduction to the history of the semi-conductor theory, the paper describes the principles of electron and hole flow in the semiconducting materials, the operation of the PN junction, and the rectification process in multi-layer devices (diodes and SCR's). The various methods of purification and zone-refining of the silicon are illustrated prior to the discussion on the most commonly used junction-forming processes (alloying, diffusing, etc.). Modern device fabrication and packaging operations are illustrated. Factory testing, evaluation, electrical parameters and guaranteed rating characteristics are listed. It is explained in this paper how the various device parameters affect the electrical performance of the finished unit and how the finished unit characteristics (turn-on, turn-off time, etc.) will influence the equipment rating. In concluding, some typical items of equipment are highlighted, and the applications of these semiconductor rectifiers in the chemical, mining, pulp and paper, and steel industries, etc., are dealt with."

Jan 1, 1967

By Yves Gagnon, Nicole Gauthier, Daniel Kelly, Michel Rocheleau

"The Larder Lake-Cadillac Tectonic Zone in Rouyn-Beauchastel area (a 20 km long segment) contains distinct lithotectonic units bounded by artastomosing or sub-parallel shear zones. The gold deposits in the area are located within highly strained portions of E-W striking shear zones. The ore-zones are structurally controlled disseminated and vein-type lodes. They are spatially related either to megascopic z-shaped folds which refold E-W shears, or to areas of intersection between E-W shear zones and late NE-striking faults. Several ore bodies are enclosed within ultramafic rock units or at their contacts with adjacent units. All the lenses are elongated down dip and distributed, both loterally and vertically, ""en echelon"" . The ore zones tend to decrease in size and number away from the hinge zone of the megascopic z-shaped folds.Two main styles of mineralization are recognized at the Astoria deposit and at for most of the deposits in the Rouyn-Beauchastel segments a discontinuous ""Carbonate Ore"" and a more continuous, albitic sulphide-bearing ""Flow Ore"" (terminology used at the Kerr Addison mine).The typical ""Carbonate Ore"" zones are found within strongly arbonatized blocks bounded by conjugate late NE or NNW-striking fralls. The carbonatized blocks display features characteristic of llrittle to brittle-ductile deformation developed in shear zone system. Vein systems in the ""Carbonate Ore"" occur within shear fractures(D R)tension fractures (T), or within brecciated rocks adjacent to NS llrilcing faults. The ""Carbonate Ore"" zones are displaced by numer IU lole E-W, NNE, NW and N-S faults.The ""Flow Ore"" zones are found within predominantly ductile portions of E-W shear zones. The sulphide mineralization is finely disseminated and regularly distributed within mylonitic foliation or associated with veins and veinlets sub-parallel or oblique to the mylonitic foliation, in which case the mineralization is coarser grained. The gold mineralization is a late Archean event postdating the formation of the penetrative fabric, and synchronous with the end of the dextral oblique-slip motion."

Jan 1, 1990

By C. Blawert

The corrosion properties of the skin and the bulk of semi-solid processed and high pressure die cast AZ91 alloy were studied in 5% NaCI solution by (a) analysing the corrosion morphology, (b) measuring electrochemical polarization curves, (c) performing electrochemical impedance spectroscopic measurements, and (d) immersion tests at constant pH-values. Using XRD, LM, SEM and EDX to evaluate the microstructure of skin and bulk specimens, the corrosion results were related to the microstructures of the particular alloys. However, microstructure and corrosion performance were found to be similar for both production processes, and only slight but distinct differences were found. Generally, the skin corrosion properties are inferior to those of the bulk, with the exception of the high pressure die cast AZ91 alloy, where the finer microstructure of the skin layer exhibits a better performance as showed by impedance studies and confirmed in long term immersion tests.

Jan 1, 2004

By G. T. Fisher

A continuous process is used at Phelps Dodge Sierrita Inc. to produce copper sulfate pentahydrate via a solution extraction ? crystallization approach to supply the animal feed market. A review of the fundamental concepts of the process and unit operations is presented. Improvements in the process are aimed at achieving a controlled size distribution of product crystals (-40+80 mesh) with minimization of fines by primary nucleation and crystal breakage. An independent temperature control design was implemented for the heat transfer medium (water) in each crystallizer, albeit using common headers in and out of the chiller. This design was developed to maintain a controlled degree of supersaturation in each vessel while preventing localized spontaneous nucleation of fines and reducing encrustation of the heat transfer surfaces in each crystallizer. A model was developed to calculate the heat load and heat transfer coefficient of each crystallizer along with the saturation copper tenor as a function of temperature and free acid.

Jan 1, 2007

By S. Afshar, C. Allaire

Several studied have recently shown that the use of non-wetting additives is not always a sufficient solution to improve the corrosion resistance of refractories against molten aluminum. Once in contact with liquid aluminum, the coarse aluminosilicate aggregates, which do not benefit from the protective effect of non-wetting additives in the matrix, may be corroded. In some cases, the corrosion of aggregates, especially those containing a significant amount of free silica and/or alkalis, promotes corrosion in the surrounding matrix. The present work explores the possibility to protect the poor corrosion resistant aggregates via a lining procedure. A slip casting method, using either alumina or celsian-like composition based slurries, has been applied for lining of a series of aggregates. The results from this study show that such linings may prevent efficiently the corrosion of aluminosilicate aggregates. This work also analyzes the effects of firing temperature and lining quality on the corrosion behavior of aggregates

Jan 1, 2004

By E. H. Holm

"This paper is a market-oriented review of the industry's present and forecasted performance, considering some of the principal factors influencing natural resource development. The author illustrates the steady consumption growth of nickel, and stresses the need for a quantitative long-range approach to production, consumption and the supply/ demand balance on a worldwide basis. Objective consideration of this data exposes some popular misconceptions. The possibility of near-term undersupply of nickel is discussed in relation to historically rapid changes in inventories and demand patterns. What is the significance of the increasing reliance on lateritic sources? New• facilities, new processing methods and new product forms are illustrated as further evidence of the industry's determination to satisfy the needs and preferences of nickel consumers. Examples indicate how product forms must accommodate to fast-evolving end-use technology. A review of nickel's price performance is used as a base from which to explore tomorrow's price trends."

Jan 1, 1972

By S. Jayasekera, A. M. T. S. Bandara, J. Kyle, E. Koenigsberger, L. Koenigsberger

The extraction of rare earth oxides from fluoroapatite rich phosphate concentrates often involves a weak acid leach of fluoroapatite and a sulphuric acid bake of the leach residue followed by water leach and precipitation to obtain an intermediate product. The main aim of this study was to determine and rationalize the solubility of rare earth metal ions in synthetic solutions representing various process liquors at the temperatures 40, 60 and 80oC. The liquors contained different acid and metal ion concentrations with respect to sulphuric acid, phosphoric acid and sulphate salts of sodium, magnesium, aluminium, potassium, calcium and iron(III). A solid of mixed rare earth carbonates was used as the source of rare earth metal ions. The solubility tests and characterization of solids using XRD were conducted at Murdoch University laboratories as part of the process development for the Arafura Resources Nolans rare earth project. The composition of initial carbonate solids and the solids and solutions formed after saturation were analysed for rare earth and other elements at TSW Analytical Laboratories in Perth using ICP-MS and ICP-OES. The precipitated solid in sodium-rich acidic sulphate solutions is the double salt NaRE(SO4)2 based on the solid assays. However, in acidic solutions free of sodium or of low concentrations of sodium the precipitated solid appears to be RE2(SO4)3.

Jan 1, 2014

By E. Asselin, P. Sauve, H. Salomon-de-Friedberg

"Residues from the CESL Copper process were leached using the CESL Gold process. The kinetics of reaction were confirmed to be fast with over 50% of the gold consistently extracted within 2 minutes of leaching. Final gold extractions under the conditions tested here were between 80-90% obtained within 90 minutes. A model for the CESL Gold process was developed. This model is slightly different based on whether the copper concentrate leach residue was ground or unground prior to leaching: the gold leaching rate constant is approximately twice as fast for the ground samples. Unground residues had a P80 of 13 ?m whereas ground residues had a P80 of 10 ?m. The model predicts a 43% decrease in leaching time for ground residue versus unground residue to achieve the same extraction under otherwise identical conditions. The model was more accurate for the ground samples. INTRODUCTIONTeck's CESL Process (Jones, 1996) was developed to provide an economically attractive alternative to traditional copper smelting. It has since evolved to also deal with copper concentrates containing valuable impurities such as nickel and undesirable ones, such as arsenic, while reducing downstream costs. Effective recovery of gold and silver is essential to the economics of the CESL Process. The Brook Hunt 2007 copper concentrate assay data (Wood-Mackenzie, 2007) were examined to determine the ratio of gold plus silver value relative to the contained copper. As indicated in Figure 1 below, nearly two-thirds of concentrates have 10% or more of their total value tied up in their precious metals content.CESL has extensively examined the recovery of gold and silver at bench, pilot and demonstration scale, which has culminated in the present CESL Gold Process (Barr et al., 2007). The process targets the precious metal contained in the leach residues produced in the copper portion of the flowsheet. This residue has two primary components which influence downstream processing. The major iron-rich fraction (-75 wt%) of the residue is a mixture of various forms of iron oxide precipitates including hematite and jarosite (Sahu and Asselin, 2011). The iron fraction ranges from amorphous to crystalline in nature depending on the compound precipitated, upstream operating conditions and feed material composition. The lesser, but by no means less important, fraction is a mixture of elemental sulphur and unreacted sulphides (principally pyrite).Elemental sulphur formed during the oxidative leach of the copper concentrate reacts with cyanide to form thiocyanate (SCN-) making a traditional cyanide leach approach too costly. Since the SCN formation reaction strongly depends on contact time with the CESL residues (Po, 2007) short contact times were preferred. This factor guided the development work towards the eventual room temperature, pressure cyanidation process which results in near complete gold dissolution in 90 minutes. A recent CESL gold demonstration campaign treating 1.5 t/d of residue from the copper oxidation step achieved an average gold extraction of 91% (96% maximum)."

Jan 1, 2012

By K. Östcrdahl

We are developing a cost-saving and environmentally friendly process with low energy consumption to recover the metal content and recycle the acid from spent pickle baths. The metals are precipitated as metal fluorides, which can be turned into metal oxides and hydrofluoric acid by thermal hydrolysis. In the proposed process the solution is concentrated by nanofiltration and the metals are precipitated in a subsequent crystallization step. Different nanofiltration membranes have been evaluated in experimental batch tests. The membrane MPF-34 from Koch Membrane Systems offered both good flux and acceptable metal retention even after long periods of acid storage. The solubility of B-FeF3.3H20 has been measured at varying acid concentrations and at different temperatures. The solubility decreases with increasing hydrofluoric acid and nitric acid concentrations. This suggests that the crystallization process should be operated at high acid concentrations. The crystal growth rate of B-FeF3.3H2O is found to be quite low but increases significantly with temperature. This suggests that the crystallization process should be operated at higher temperatures (40 - 60°C). Within the project a pilot plant has been constructed where the spent pickle bath solution is concentrated by nanofiltration to the desired metal fluoride supersaturation, and B-FeF3.3H2O is crystallized in a 10 L continuous crystallizer.

Jan 1, 2006

By T. Feldmann, G. P. Demopoulos

The feasibility of chloride leaching processes depends on interfacing them with cost-effective HCl regeneration technologies. This paper summarizes the most important findings of research conducted in the past 3 years concerned with a novel process to regenerate high-strength HCl from concentrated CaCl2 solutions at temperatures below 100°C, via reaction of CaCl2 with H2SO4 resulting in the formation of calcium sulfate phases (gypsum, a-hemihydrate or anhydrite). From constant supersaturation semi-batch experiments in pure solution it was found that the crystal growth rate of hemihydrate, and hence the particle size, was influenced by the rate of reagent (Ca2+, SO4 2-) supply to the reactor. Additionally, growth studies of DH in presence of impurities (K+, Mg2+, Sr2+, Ba2+, Fe2+/3+, Al3+, La3+, Y3+, F- and PO4 3-) showed that specifically Sr2+ and PO4 3- are taken up during crystal growth. Furthermore, it was found that decreasing water activity (via different HCl/CaCl2 concentrations) and increasing temperature reduce the metastable life-time of DH and HH by increasing the phase transformation speed. The DH/HH transformation was identified to be dissolution-precipitation based, while HH to AH is a topochemical process. Finally, continuous experiments on bench scale are underway to confirm the feasibility of the process to obtain super-azeotropic strength HCl with up to 9 mol/L (~30wt.%) from 5 mol/L CaCl2 (~40wt.%) solution.

Jan 1, 2014

By R. C. Reed, L. T. Wu, H. C. Harada, K. Kawagish, R. T. Wu

Oxidation of pure metals is a chemical reaction in which the metal loses one or more electrons, such that the atom of the metal changes from the neutral state to a positively charge ion and reacts with oxygen to form an oxide of the metal. The oxide can form as a protective and adherent scale that slows down further oxidation, or may spall off repeatedly, exposing fresh metal surface to react with oxygen. In multi-component alloy systems such as typical high temperature NiCrAlY bond coats, more than one oxidation mechanism may take place at once and thus, complicates the study of oxidation. To better understand the competition between formations of oxides of different compositions, a thermodynamic assessment is carried out to study the oxidation mechanism of a Ni-27Cr-9Al (at %) ternary alloy. Based on the assessment, it is demonstrated that the layering of different oxides can be determined, with the most stable oxide (alumina) existing directly above the metal-oxide interface and the least stable oxide (nickel oxide) locating on the outer most layer. A comparison between the calculated results and previously published experimental observations shows excellent agreement.

Jan 1, 2010

By G. Clarkson, M. Hitch, R. Clarkson

"A novel reagent-free method of extracting gold from gravity middling concentrates in the Yukon placer fields is presented in this paper. This method exploits the malleability of gold by submitting concentrates to grinding in a rod mill. Brittle waste minerals are effectively reduced, whereas malleable gold particles are flattened and are then extracted by classification through sieves. Recoveries in the field using a laboratory-sized rod mill regularly exceeded 90%, whereas correlation laboratory tests indicated recovery to be most sensitive to the mill charge size. This method has broad potential, including application to the gravity circuits of large hard-rock processing circuits.RÉSUMÉ Cet article présente une nouvelle méthode sans agents réactifs d’extraction de l’or dans les concentrés gravimétriques mixtes que l’on trouve dans les districts placériens du Yukon. Cette méthode exploite la malléabilité de l’or en broyant des concentrés dans un broyeur à barres. Les déchets miniers cassants sont bien réduits, alors que les particules d’or malléables sont écrasées puis extraites par classification au travers de cribles. Si les récupérations sur le site à l’aide d’un broyeur à barres de laboratoire excèdent 90 %, les essais de concordance en laboratoire indiquent que la récupération est très sensible à la taille de la charge du broyeur. Cette méthode présente un grand potentiel, notamment une application possible aux circuits gravimétriques des grands circuits de traitement des roches dures.INTRODUCTIONExploiting the high density of gold to separate it from waste materials is the oldest known mineral processing technique. This basic technique is still widely used in gravity concentration circuits today; however, gravity processing invariably results in high-value middlings, especially in the Yukon placer gold fields. In addition to having a uniquely high density, gold is also the most malleable metal. This unique malleability can be exploited to extract gold from otherwise inaccessible gravity middlings.The Yukon placer gold industry has been continuously ongoing since the 1860s, and today produces approximately 60,000 oz t (1.87 million grams) of crude gold annually, most of which is from the Klondike region near Dawson City (Van Loon & Bond, 2014). It is important to note that Yukon placer miners do not use any chemical extraction methods; rather, gravity upgrading methods are the sole processing techniques used. Placer deposits are typically coarse, well liberated, and naturally gravity concentrated and recoverable, thus making more expensive chemical extraction unnecessary (Mitchell, Evans, & Styles, 1997). Furthermore, a strict permitting regime, environmental concerns, lack of expertise, and fear of repercussions from regulators prevent miners from attempting more advanced processing methods, such as flotation or cyanidation. Even simple chemical extractions like mercury amalgamation have not been implemented for decades, with one observer noting that, as many as 30 years ago, “the art of mercury for amalgamating appear[ed] to be dying [in the Yukon]” (Osler, 1983)."

Jan 1, 2017

By W. E. Segsworth

Introduction By far the largest part of the money raised for mining is raised by honest and legitimate means; but a not inconsiderable amount is raised by fraudulent sales methods. It will be conceded without argument that the greatest menace to the mining business is the fraudulent promoter. The sale of worthless mining stocks to the public by high-pressure. salesmen, house to house canvassers, telephone campaigns, fraudulent use of the mails, fraudulent statements, and reloading, has seriously prejudiced the public against even legitimate mining. A very small percentage of the funds raised by such fraudulent means is ever spent on the property, but instead is absorbed by the promoter in illegitimate' profits, enormous commissions, high office rents, and other expenditures, and is just so much subtracted from the fund which the legitimate developer needs to bring new mines to the point of production. The mining fraternity has been at fault in that, while they recognized this situation, they made no adequate attempt to rectify it. They knew that these fraudulent practises were conducted by parasites who attached themselves to the mining business in boom times and claimed to be part and parcel of it, but who were merely professional salesmen and promoters who, when there was not a mining boom, were selling sky-line real-estate, worthless oil stocks, or fraudulent securities which happened to be popular with the public. While mining people had this distinction well in mind, the public did not differentiate between the crooked promoter temporarily selling fraudulent mining stock and the honest promoter who made mining finance his life work; and we did little to make this distinction clear to the public or to sweep these money grabbers out of our house. The historic boom of 1927-8 and '29 brought with it the usual crop of crooked mining promoters, and the scandals resulting from their operations forced the Governments into the enactment of laws to attempt to protect the gullible public against the operations of these meanest of thieves and to appease public clamour.

Jan 1, 1934

By T. W. Wlodek

"AbstractThe results of research into the fatigue properties of SAE 1080 carbon steel and nickel-chromium-molylbdenum steel for mining drill rods are analysed and described in detail.The effect of water corrosion on the fatigue strength of drill rods of these two steels in the as-rolled condition has ,been investigated and the beneficial influence of shot-peening on their dry and water-corrosion fatigue strengths determined by employing the method developed previously (1).Eight S-N curves for as-rolled and shot-peened mining drill rods under both dry and water corrosion conditions have been derived and their shape and relative position are discussed. The main features relating to field performance of the drill rods are analysed.Purpose of Research and Outline of ProgrammeDRILLING holes in rock and ore by means of drill rods attached to a pneumatic drill is a basic procedure required in mining operations. Detonation of explosives placed in these holes is at present the only practical method of breaking down the rock and ore.A drilling rod is supported by its bit end in the drilled rock. Its shank end, fixed in the drilling machine, transmits impact energy to the cutting edges of the bit. On the field performance of the drill rod depend a number of basic mining operations such as sinking, drifting, and stoping. The drill rod is there-fore regarded as one of the most important tools used in the mining industry."

Jan 1, 1952

By T. Grammatikopoulos, K. Gibbs, H. De Souza, C. Gunning

The mineralogy of any ore body is a key factor in defining ore zones and predicting minerals/metals behaviour during processing. The determination of forms of gold, defined as the different chemical states in which gold is encountered in ore deposits, is critical. The most commonly known form is that of gold minerals and alloys, while other forms of gold have been collectively described in the literature as submicroscopic gold (i.e., less than 1 µm in diameter). Gold mining operations generally deal with very low-grade ores, in the order of a few g/t, in which gold displays complex mineralogy. These difficulties complicate the mineralogical studies and pose challenges for processing and recovering the gold. A comprehensive understanding of the chemical forms of gold is necessary to define gold mineralization and optimize gold metallurgy. SGS Canada Inc. has been using QEMSCANTM and a Tescan automated SEM that are automated mineralogical techniques that provide vast amounts of data for microscopic Au. The data in conjunction with other physical and chemical methods provide a comprehensive delineation of the ore composition and behaviour.

Jan 1, 2011

By Karl J. C. Harries

"11.1. INTRODUCTIONA royalty is the most common form of interest retained by an owner who is disposing of his property or by a joint venturer who ceases, voluntarily or otherwise, to participate in the joint venture.1 Rarely does a non-participating party have a direct interest in the property and/or assets of a project, except during the period when a non-participating joint venturer may be having his interest diluted.2 In fact, it is most unwise to permit a non-participating party to have such an interest. It may give rise to significant problems that could prevent or substantially delay the development of an orebody and require a considerable amount of time, effort, and money to correct.3In negotiating a royalty, it is important to be aware that there is no law or convention that says, “You just don’t do that in a royalty agreement.” As with any agreement, inventiveness and flexibility on the part of the negotiator are not just assets, but virtual necessities. It is also for this reason that it is essential to read the royalty provisions, particularly the definitions, fully and carefully, especially if you are the recipient. On the other hand, if your inventiveness and flexibility cause your accountant to question the advisability of one of your ideas, pay close attention to him.4 He will, no doubt, have had experience with many royalties, and no competent professional adviser disparages a client’s ideas without good reason. Besides, he will probably be the person who will be determining the royalty or certifying the determination of it. At the very least, he will be auditing your general financial statements, which must, of course, reflect the royalty determination. Heeding his advice not only may make the determination easier but also will probably save you money in professional fees later on. Nevertheless, do not simply accept his comments or recommendations without understanding what they mean, why they have been made with respect to your royalty agreement (sometimes professionals have comments that they make as a matter of course and, even though they may be valid, you should require them to be justified to you), and how they will affect your royalty determination.It is surprising how many corporate payors insist that their standard royalty provisions5 be used as a matter of policy, thereby effectively tying the negotiator’s hands. It is even more surprising, and to professional advisers frightening, how many of the senior employees who insist that such a policy be adhered to, virtually without variation, do not know what is in the standard provisions and would be hard-pressed to explain them to a property owner. If standard provisions are appropriate, by all means use them, but do allow experienced and sensible negotiators some flexibility and make sure that everyone within the corporation who may have to use such provisions – negotiator and supervisor alike – knows what they contain and why they are as they are. For example, there are often good and convincing reasons to describe a deduction in a certain way or to include a certain specific type of deduction. On the other hand, quite often the answer to the question “why?” is that “it has always been there”; this is, or should be, an unacceptable answer. In any event, if you, as the negotiator, appear to know what you are talking about, are familiar and comfortable with your royalty provisions, and are backed up by your boss with the same words or reasoning, a property owner cannot help but be satisfied that you are knowledgeable, even if he still does not agree with your provisions. Finally, if you do use standard provisions, make sure that they are reviewed and updated regularly."

Jan 1, 2003