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By Sidney A. Suhler

A field operable, breadboard model, borehole radar was developed for the detection of hazardous geological anomalies in and above a coal seam in advance of mining. A four-inch diameter downhole probe was fabricated and tested in several environments. The radar transmitter was also employed in a cross-hole or through transmission mode to determine natural geotechnical and man-made conditions between boreholes. Sensitivity to underground conditions in both modes of operation were indicated.

Jan 1, 1978

By John Wulff, Richard P. Seelig

The importance of the pressing operation in the forming of articles by powder metallurgy depends to a great extent on the type of product to be made. While in some few cases the pressing is merely a means of compacting loose powder particles into a solid mass preliminary to a sintering treatment, in most applications it constitutes a molding operation with the purpose of shaping the raw material in powder form into a certain predetermined, accurately defined part not altered in shape by subsequent sintering. In still other cases, no pressing at all but sintering in molds gives useful articles. A limited number of products are made by the simultaneous application of pressure and heat. The factors that control the product of the pressing operation are raw material, lubricant, type, size and shape of die and compact, magnitude and time of application of pressure, as well as temperature of pressing. All such factors need to be controlled; yet, depending on the function of the pressing operation, greater emphasis may be placed on processing factors other than the pressing operation. In any complete discussion of pressing, subsequent sintering cannot be disregarded. For the sake of brevity, the present paper has been limited to the mechanics of pressing and only occasionally refers to sintering. For the same reason, hot-pressing has been omitted as beyond the scope of this paper In any survey of the literature on the pressing of metal powders, the 1938 paper of Balshinl on the theory of the process of pressing deserves mention. The first attempts at an interpretation of pressing phenomena were made by Balshin' and RakovskL2 The experimental results of both are of great interest. Since the experimental results are not described, the work was repeated, using our own interpretation of the possible techniques, and is reported in the following pages. The basic theory of Balshin,' based on a hydro-dynamic analogy, however, leads to hut another way of plotting density and pres- , sure against height of a pressed compact. Since it does not give any new insight into the phenomena, nor account for the influence of side-wall friction, a discussion of the theory has been omitted from this paper. Density Gradients in Compacts The process of pressing metal powders in a die (disregarding for this consideration the powder filling and ejection operations) may be divided into three phases: (I) packing, (2) elastic and plastic deformation, (3) cold-working with or without fragmentation. It must be emphasized that these three steps do not follow each other in sequence; on the contrary, in practice

Jan 1, 1946

By John Wulff, Richard P. Seelig

The importance of the pressing operation in the forming of articles by powder metallurgy depends to a great extent on the type of product to be made. While in some few cases the pressing is merely a means of compacting loose powder particles into a solid mass preliminary to a sintering treatment, in most applications it constitutes a molding operation with the purpose of shaping the raw material in powder form into a certain predetermined, accurately defined part not altered in shape by subsequent sintering. In still other cases, no pressing at all but sintering in molds gives useful articles. A limited number of products are made by the simultaneous application of pressure and heat. The factors that control the product of the pressing operation are raw material, lubricant, type, size and shape of die and compact, magnitude and time of application of pressure, as well as temperature of pressing. All such factors need to be controlled; yet, depending on the function of the pressing operation, greater emphasis may be placed on processing factors other than the pressing operation. In any complete discussion of pressing, subsequent sintering cannot be disregarded. For the sake of brevity, the present paper has been limited to the mechanics of pressing and only occasionally refers to sintering. For the same reason, hot-pressing has been omitted as beyond the scope of this paper In any survey of the literature on the pressing of metal powders, the 1938 paper of Balshinl on the theory of the process of pressing deserves mention. The first attempts at an interpretation of pressing phenomena were made by Balshin' and RakovskL2 The experimental results of both are of great interest. Since the experimental results are not described, the work was repeated, using our own interpretation of the possible techniques, and is reported in the following pages. The basic theory of Balshin,' based on a hydro-dynamic analogy, however, leads to hut another way of plotting density and pres- , sure against height of a pressed compact. Since it does not give any new insight into the phenomena, nor account for the influence of side-wall friction, a discussion of the theory has been omitted from this paper. Density Gradients in Compacts The process of pressing metal powders in a die (disregarding for this consideration the powder filling and ejection operations) may be divided into three phases: (I) packing, (2) elastic and plastic deformation, (3) cold-working with or without fragmentation. It must be emphasized that these three steps do not follow each other in sequence; on the contrary, in practice

Jan 1, 1946

By R. L. Brown

This report, the seventeenth in an annual series, summarizes Bureau of Mines research and technologic work on coal and related investigations for July 1, 1951, to July 1, 1952. It 1s based largely on publications issued during the fiscal year, although 10 some instances data are presented that have not been published previously. Footnote references are given to the publications so that further details on the work may be obtained. Bureau of Mines research on the mining, preparation, and utilization of coal is directed toward developing and encouraging safer and more efficient mining practices and preparing and utilizing coals to the best advantage.

Jan 1, 1953

By R. L. Grayson

Focusing on relationships between severity measure versus productivity and other factors, this paper presents a comprehensive study of injuries for U.S. underground coal mines in 1996 by mine size. Based on analyses of data, generally the larger the mine, the more productive it is (in tons per employee-hour), but the more severe is its injury experience (r = 0.65). Within very large, large, and medium mine sizes, however, the more productive the mine, the less severe is its injury experience (r =-0.43, -0.36, and -0.26, respectively). For small and very small mines, a more deeply nested analysis is required to understand relationships. Other interesting relationships and comparisons are presented.

Jan 1, 2000

By John Wulff, Richard P. Seelig

THE importance of the pressing operation in the forming of articles by powder metallurgy depends to a great extent on the type of product to be made. While in some few cases the pressing is merely a means of compacting loose powder particles into a solid mass preliminary to a sintering treatment in most applications it constitutes a molding operation with the purpose of shaping the raw material in powder form into a certain predetermined, accurately defined part not altered in shape by sub- sequent sintering. In still other cases, no pressing at all but sintering in molds gives useful articles. A limited number of products are made by the simultaneous application of pressure and heat. The factors that control the product of the pressing operation are raw material, lubricant, type, size and shape of die and compact, magnitude and time of application of pressure, as well as temperature of pressing. All such factors need to be con- trolled; yet, depending on the function of the pressing operation, greater emphasis may be placed on processing factors other than the pressing operation. In any complete discussion of pressing, subsequent sintering cannot be disregarded. For the sake of brevity, the present paper has been limited to the mechanics of pressing and only occasionally refers to sintering. For the same reason, hot-pressing has been omitted as beyond the scope of this paper. In any survey of the literature on the pressing of metal powders, the 1938 paper of Balshin1 on the theory of the process of pressing deserves mention. The first attempts at an interpretation of pressing phenomena were made by Balshin1 and Rakovski.2 The experimental results of both are of great interest. Since the experimental results are not described, the work was repeated, using our own interpretation of the possible techniques, and is reported in the following pages. The basic theory of Balshin,1 based on a hydro- dynamic analogy, however, leads to but another way of plotting density and pres- sure against height of a pressed compact. Since it does not give any new insight into the phenomena, nor account for the influence of side-wall friction, a discussion of the theory has been omitted from this paper. DENSITY GRADIENTS IN COMPACTS The process of pressing metal powders in a die (disregarding for this consideration the powder filling and ejection operations) may be divided into three phases: (I) packing, (2) elastic and plastic deformation, (3) cold-working with or without fragmentation. It must be emphasized that these three steps do not follow each other in sequence; on the contrary, in practice

Jan 1, 1946

By Ben V. Petersen

Surveying is to tunneling, as a steering wheel is to a car—somewhat essential if you want to end up in the right place. The principles of tunnel surveying have remained unchanged since the first tunnels were constructed: To mathematically connect the selected start and end points of a tunnel and physically translate that alignment onto the ground. The alternative is just dead-reckoning and leaves the probably less than satisfying end results to chance. Today’s laser-guided tunnels often have to thread the needle through a maze of soil types, utilities, structural features and other underground considerations. Surveying makes it possible.

Jan 1, 2005

By P. W. Ramsey, G. L. Werley

THERE have been numerous examples in recent years of the similarity between aging behavior and diffusion behavior, where a plot of the logarithm of the aging rate versus the reciprocal of the absolute temperature yields an approximate straight line, analogous to a similar plot of the diffusion coefficient D (log D vs. 1/T). Austin and Rickettl have pointed out that this linear relationship holds empirically for the de- composition of austenite into pearlite and bainite in carbon steels, and Robertson' has shown similar trends in the aging of 24S-type aluminum alloys. Jenkins and Bucknall³ have also demonstrated the association between aging and diffusion rates for nickel-silicon-copper alloys. Jetter and Mehl,4 however, have shown that the maximum rate of dilation of a series of aluminum-silicon alloys does not show this linear relation and Mehl5 has pointed out that careful study of available knowledge indicates that "aging rates increase with temperature approximately exponentially, whereas D increases precisely exponentially." He further notes that "the rate of aging at a given temperature is the greater the lower the melting point of the alloy, which is also true for D." This paper describes the aging changes occurring in a zinc-25 pct manganese-15 pct copper-0.1 pct aluminum die casting alloy. It was found that this alloy does show this linear relationship and use was made of this relationship to estimate aging rates at low temperatures from data acquired at elevated temperatures. It should be noted that the aging reaction is being studied only indirectly, using changes in certain properties as criteria of the progress of the phenomenon. This alloy is purely an experimental one and is not available commercially. Zinc-Manganese-Copper System: The zinc-rich portion of the zinc-manganese-copper diagram which is of significance in the present work is quite uncertain. X ray examination of the alloy as die cast shows a phase similar to the epsilon phase (hexagonal close packed) of the copper-zinc system. All of the data accumulated indicate that the epsilon phase of the zinc-manganese-copper alloy is stable at high temperatures; that is, 500°C or above. Below this temperature a new phase is precipitated on annealing, and a decrease in specific volume occurs. At elevated temperatures this phase change occurs quite rapidly, while at room temperature the alloy has shown no change after several years. According to X ray data, this precipitated phase resembles the gamma phase (cubic) of the copper-zinc system, a hard and brittle structure. From examination of the microstructure and from X ray examination of the alloys annealed at

Jan 1, 1951

By Milton E. Wadsworth, R. Ted Wimber

Cobalt sulfate solutions containing ammonium acetate and chloroplatinic acid were reduced by hydrogen in a pyrex-glass lined autoclave in the temperature range of 170o to 232°C and hydrogen partial pressure range of 115 to 830 psia. The reduction rate was directly proportional to the hydrogen partial pressure and surface area of the pyrex glass and was independent of the quantity of chloroplatinic acid added initially. Experiments involving the variation of the relative concentration of ammonium acetate indicated that the reducible cobalt complex was probably the diacetate complex of cobalt, Co(AC)4H20, or a new mononcetate complex Co Ac, which was in solubility equilibrium with a pink precipitate of CO(AC)-4HzO. THE reaction in which a metal is dissolved by an acid to produce gaseous hydrogen and a salt solution was discovered early in the history of chemistry. In 1859 Beketoff found experimentally that this reaction could be reversed; i.e., a salt solution could be reduced by gaseous hydrogen to produce a metal and an acid. A review of work done on this phenomenon since that time may be found elsewhere., The hydrogen reduction of a cobalt salt solution is facilitated by complexing the cobalt ion. An ammonia complex of cobalt has been reduced commercially in the recovery of cobalt metal. A new reducible complex of cobalt was discovered5 when it was found that a co-baltous sulfate solution containing ammonium acetate could be reduced by hydrogen at temperatures in the region of 200°C. When a cobalt sulfate-ammonium acetate solution was heated to a temperature below its normal boiling point, a violet color became apparent, indicating complex formation. The nature of this complex was investigated5 by the addition of NH4Ac to a CoSO4 solution maintained at 85o. During the first additions of NH, Ac, the pH of the solution remained fairly constant at about 5.85. However, as the ratio of NH,Ac to CoSO, approached two, the pH rose and then leveled off at about 6.05. The absorption spectra of a Co(Ac), solution and a CoSO,, NH Ac solution were obtained at 85°C and were compared and found to be the same. These findings suggested that the diacetate complex of cobalt, Co(Ac),.4H20, was formed at 85°C. When a cobalt sulfate-ammonium acetate solution was heated to a temperature above about 165o, a finely divided pink precipitate appeared. The X-ray diffraction pattern of this precipitate indicated that it was Co(Ac), - 4H,O. In addition, it was discovered that when chloroplatinic acid, H,PtCl;, was added initially to the cobalt sulfate-ammonium acetate solution, a faster reduction was obtained. The roles of the solution complex, pink precipitate and chloroplatinic acid in the reduction process were then investigated. APPARATUS The experimental work was carried out in a two-liter stainless-steel autoclave. Adetailed description of the autoclave and the auxiliary equipment used in maintaining constant temperature and pressure may be found elsewhere.= Because the stainless steel was corroded, and also because it acted as a hydrogena-tion catalyst, an all-glass liner was fabricated such that the solution came only into contact with flame-polished pyrex glass. EXPERIMENTAL PROCEDURE The solutions used in the experimental work were prepared by dissolving reagent grade chemicals in distilled water. Although variation of the brand of ammonium acetate appeared to have no effect on the experimental results, CoSO, 7H O from the J. T. Baker Chemical Co. of Phillipsburg, N. J.,was found to give faster reductions than that prepared by Allied Chemical and Dye Corp., N. Y. The former was used throughout the course of the experimental work and was weighed up at the outset of each experiment. The ammonium acetate was dissolved to form a 6M stock solution, which was stored under refrigeration. A 10 pct solution of chloroplatinic acid (J. T. Baker Chemical Co.) was diluted to a 1.15 x 1Q2 M stock solution, which was standardized by precipitation of K,PtCl, as outlined by Scott. The appropriate volume of the chloroplatinic acid, H,PtCl,, solution was pipetted into the clean, dry glass liner. The cobalt sulfate-ammonium acetate solution, which had previously been saturated with

Jan 1, 1962

By C. O. Swanson

THE purpose of this paper is to discuss the use of the dip needle in the field of mining geology. The subject matter is new only to the extent that it reflects the writer' s added experience in recent years. The treatment is brief, and those interested in a more extended analysis are referred to the articles listed at the end of the paper. In the discovery and tracing of mineral deposits, the clip needle, like most other geophysical instruments, can be used in two ways. One method may be termed direct; the other, indirect. The direct method is that of finding or following certain ore-bodies by virtue of their magnetic properties. Explicitly, or by inference, it is the method which many mining men and practising geophysicists have in mind when they consider whether or not a certain property should be studied by geophysical means. In the ideal case, this method demands little or no knowledge of geological conditions. The indirect method uses the clip needle as an aid to purely geological studies in working out the structure of a mineralized area. Although not as simple as the direct method, it enjoys a much wider field of usefulness. The writer's experience in the past fifteen years, which is believed to be typical, is that the indirect method finds application four or five times as often as the direct method. The indirect method is of particular value because it furnishes information concerning the relationship between geological structure and ore occurrence. Most mining engineers will agree that structural control is an important factor in the localization of ore deposits, and therefore that the subject under consideration is of some interest in mining geology. Specifically, then, the present purpose is to outline the principles and practice of using the clip needle in working? out geological structure.

Jan 1, 1941

By Sandra Penttinen

To assist blasting professionals with the creation, documentation, and appropriate methodology to standardize the data collection of the pre and post blast investigation process. Penttinen Associates will present a logical non-technical presentation focusing on: Why pre-blast surveys SAVE How to prepare for pre-blast inspections What to do in preparation of pre-blast inspections The creation of an industry standard all-inclusive pre-blast document Establishing pre-blast inspection operational standards Preserving the data.

Jan 1, 2001

By H. O. Hofman

Jan 1, 1896

By Eric B. Sansone

The Federal Coal Mine Health and Safety Act of 1969 requires coal mine operators to sample accurately the amount of respirable dust in the mine atmosphere. A technique approved for such sampling employs a 10 mm nylon cyclone followed by a membrane filter (nominal pore size ????= 5 µm) and a pump. The pump is required to provide a flow rate of 2.0 ± 0.1 liters per minute. Calibrations have yielded a range of flow rates (1.4 to 2.8 1pm) at which the cyclone should be operated to remove the non-respirable portion of the dust. The purpose of this project was to evaluate the performance of the 10 mm nylon cyclone at flow rates of 1.8 and 2.0 1pm using a polydisperse coal dust aerosol. The penetration characteristics of the cyclone were to be compared to the United States Atomic Energy Commission's respirable dust standard. The effect of relative humidity on cyclone penetration characteristics was also to be observed.

Jan 1, 1973

Technology is playing an increasingly large role in the operations of our mines. There is a temptation to regard the implementation of technological systems as the objective itself when, in reality, systems are used to support a business process. Only when the process succeeds will the systems be seen to succeed. Understanding the distinction between system and process is critical. This understanding, together with the resultant holistic approach, is considered to be critical to successful implementation and operation of Mine Control process. This paper examines the critical factors essential to success in establishing and sustaining a Mine Control process that maximises benefits to an operation. These factors have been developed during the author's experience of nearly 30 years in Mine Control projects across over 50 sites. Each factor is discussed in relation to real world examples at well-known mines.

May 1, 2010

By Syd S. Peng

Is the laboratory sized coal specimen much stronger than underground coal pillars? The answer to this question has a profound implication to many coal operators. It will decide how much of the coal reserve can be recovered. Or, in many cases, it will determine whether it can be mined economically. Recent trends in several eastern states to establish regulations regarding coal pillar design to prevent surface subsidence long after mining heighten the debates. And, in some cases, these trends highlight the existing practices that seriously question the conventional wisdom. Currently, nearly all researchers and practitioners agree that as the size of rock specimens increases, its strength decreases. This concept has been universally adopted as the basic principle for coal pillar design in the United States. Several formulas have been derived to account for this effect. The reduction factor for underground coal pillars ranges from one-half to one-sixth of the strength obtained in the laboratory, depending on the formula selected. Recent case studies indicate that the reduction factor is not justifiable, at east in some cases. The use of a reduction factor is based on the assumption hat smaller rock specimens as tested in he laboratory contain none or fewer fractures or planes of weakness than larger specimens or underground coal pillars. In other words, the larger the rock materials, the more fractures it contains and subsequently weaker in strength. Do all underground coal pillars have more fractures than laboratory sized coal specimens? Not necessarily. All coal contains cleats. Some are con¬spicuous but others are not. In terms of cleat density (number of cleats per unit area), there is no difference between an underground coal pillar and a laboratory sized specimen, provided the specimen size is larger than the cleat spacing, which is mostly 25 to 75 mm (1 to 3 in.).

Jan 1, 1993

By Frank E. Chase

During the past quarter century, coal mine geologists have evolved from providing a qualitative description of drill core and coal reserves into quantitative geotechnical specialists who bridge the gap between geology and engineering. In the late 1970?s and early 1980?s, hazard prediction mapping was in its infancy. At best, hazard maps identified rudimentary structures and conditions such as stream valley locations, sandstone/shale transition zones, and lineaments. A ?technical disconnect? had existed between geologists and mining engineers as each profession operated largely independent of each other. Engineers did not readily integrate geology and geologic conditions, with the exception of coal thickness, into mine planning. Geologists were relied upon for reserve estimates and did not participate in mine planning or design. The employment and market slump of the 1980?s and 1990?s combined with mining more challenging reserves mandated that this gap be bridged and forced geologists to learn to speak more ?numerically? to engineers so they could be understood. The purpose of this paper is to describe the procedures and thought processes used by coal mine geologists when determining various mineability and reserve extraction feasibility issues. The paper will also address underground geologic hazard mapping and prediction techniques. To achieve these objectives, the opinions and experiences of leading coal mine geologists, geotechnical and strata control specialists across the United States were solicited.

Jan 1, 2006

By Daniel W. H. Su

Current longwall pillar design relies heavily upon past experience and many assumptions about pillar and entry response to longwall abutment pressures. Caving characteristics of the immediate and main roof strata are known to play an important role in the overall pressure redistribution, which determines the maximum abutment pressure, abutment pressure at the T-junction, and the width of influence zone. This paper presents the results of an extensive geomechanical study in a longwall panel at a West Virginia coal mine. The response of eight headgate pillars and the adjacent entries was monitored as the longwall face approached and passed by the instrumented locations. Overburden response to longwall mining was also monitored, and height of the highly fractured zone above the gob was determined by postmining drilling. Good agreement was observed between the measured stress changes and those computed using the known height of the highly fractured zone. The results provide a detailed picture of the response of overburden strata and chain pillars to longwall mining.

Jan 1, 1987

By G. Deissman, S. Kistinger

For the last 15 years environmental Life-Cycle Assessments (LCA) have increasingly been used to evaluate the environmental performance of industrial processes and products and have been employed as a basis in decision making processes in the public and industrial sector. However, assessment methodologies for environmental protection measures and reclamation/remediation measures with respect to their consumption of natural resources are generally poorly developed. In this presentation a methodology for LCA of environmental protection measures and remedial actions, respectively is suggested, using the remediation/reclamation of mining sites as an example. Key aspect of this approach is the development of an evaluation method appropriate for environmental protection measures, which links the various impact indicators recognised in the impact assessments and allows their integrated assessment.

Jan 1, 2005

By Toshiro Kuji, Masakazu Fujita, Tetsuji Saito

"The magnetic properties of the magnetic materials were deeply dependent on the microstructures. In this study, the novel technique to produce the desired microstructures in a controlled manner was proposed. The technique consisted of the production of the amorphous alloys and the control of the crystallization process. The technique was applied to improve the magnetic properties of Nd-Fe-B permanent magnets. The microstructural control of the magnets exhibited the excellently high energy-products of higher than 430 kJm-1. The relationship between the magnetic properties and the microstructures of the Nd-Fe-B permanent magnets was discussed.IntroductionThe intrinsic properties of the materials are basically determined by the properties of the constituent elements or the compounds. However, it is often noticed the difference between the observed properties and the theoretical values expected from the intrinsic properties of the materials. This indicates that the observed properties of the materials are determined not only by the properties of the constituent elements. In other words, the observed properties of the materials are also strongly dependent on the morphology of materials. This means that the microstructural control may creates a great improvement of the properties of materials.In Nd-Fe-B permanent magnets, the superiority arises from the uniaxial intermetallic Nd2Fe14B compound which has a large saturation magnetization and a high anisotropy field [1,2]. The magnetic properties of the Nd-Fe-B permanent magnets are dependent on the microstructure, that is, the size, shape and degree of the crystallographic alignment of the Nd2Fe14B phase. Currently, the Nd-Fe-B permanent magnets have been produced by either sintering or melt-spinning [3,4]. In the sintered magnets, alignment of the Nd2Fe14B phase is achieved by the prior green compaction of the crushed ingot powders in an applied magnetic field [3]. In the melt-spinning approach, alignment of the Nd2Fe14B phase is achieved by hot deformation [5]. Amorphous melt-spun ribbons are comminuted and then are consolidated into bulk form by hot pressing before hot deformation. As-hot-pressed magnets have randomly oriented Nd2Fe1~ grains [6]. Subsequent die upsetting of as-hot-pressed magnets gives rise to the crystallographic alignment of the Nd2Fe14B phase."

Jan 1, 1998

By Kenneth A. Grace

Introduction The 1980s have not been kind to the mining industry, especially in the United States. As mineral commodities prices plunged, marginal producers were squeezed out and then major players were forced to cut back or close down operations. Base metal miners suffered the most. Gold was all that glittered. As had been the case throughout min¬ing's history, exploration activity was an early victim of these depressed conditions. Mining companies had to economize drasti¬cally and exploration was deemed a nones¬sential activity. Funding for new explora¬tion ventures dried up as mining was seen as a poor investment. A national magazine even proclaimed the death of the industry. Indeed, ignoring matters of independ¬ence of supply and the relationship of min¬eral production to national security, it was argued that mining was but a small cog in the overall scheme of things in the United States. The industry made a relatively small contri¬bution to the gross national output. We were becoming a service industry economy, re¬member? But what of those countries where mining plays a major role in the economic well-being? In some, mining is the national economy. In a few specific cases, special conditions actually brought prosperity. Copper production in Chile is one example. There, high grade copper, low production costs, and a technically advanced industry reaped the benefits of mine closures else¬where. In most other cases, however, par¬ticularly in the lesser developed countries, whole economies were devastated. This article will show what one major mineral producer, Canada, did to ensure the survival and even growth of its minerals exploration activity during these lean years. Background While Canada is among the world's mining leaders, mining is not its dominant industry. Still, it plays a far more important role than in the United States. It is a major earner of foreign exchange, currently accounting for about 25% of the total value of exports. Through spinoffs and a multiplying effect, it is a significant employer. In the far north, particularly, mining is the major nongovernment industry and a leading factor in the opening up of frontier territory. The industry cannot be allowed to die because it is often the main economic underpinning for vast, remote areas. Thus, exploration for new deposits cannot be cur¬tailed significantly without it having a long¬term negative impact on the very fabric that melds such a large, sparsely-populated ex¬panse of country into a nation. Over the years, Canadian governments have employed various means to encourage the development of new mines. Often, these incentives were tax-oriented, such as the three-year income tax holiday that applied to new mines in the 1950s and 1960s. The advantage of the tax connection is that any such incentive policy can be applied across the board to the 10 provinces and two territories that make up the federation of Canada. This is important because mining, except for the two federally-administered northern territories, comes under provincial government jurisdiction. Mining taxation is a complex give-and-take between the central and provincial authorities. In Canada, expenditure on mineral exploration is an allowable cost against reve¬nue for tax purposes. This works well pro¬vided there is some revenue from which to deduct. New exploration companies, those with no income from mining activities, de¬rive little benefit from this type of tax provi¬sion. Similarly, in times of depressed prices and reduced or nonexistent profits, the tax deductibility of exploration spending loses its value even for the major mining compa¬nies. To encourage exploration in Canada during the lean years, a different sort of incentive was required. The instrument used during the 1980s was again tax connected. It became known as flow-through financing or, simply, flow-through shares. When it assumed its final shape, it worked dramati¬cally. Flow-through shares Flow-through shares are so-named because they permit tax benefits earned by a corporation to 'flow-through' to the share¬holder. Basically, when an investor buys a flow-through share and the proceeds de¬rived by the company from this transaction are used for Canadian exploration, the in¬vestor can claim a deduction for tax pur¬poses as if the exploration expenditure was made by him personally. Flow-through shares go back to the early 1970s when Canada revamped its mineral income tax law. At that time, it permitted full deduction of exploration and development expenditures and provided for an automatic depletion allowance of one¬ third of operating profits from mining. There was also the three-year income tax holiday for new mines. New legislation replaced the depletion allowance with an earned depletion arrange¬ment whereby one dollar of depletion was earned for every three dollars spent on ex¬ploration and development. This earned depletion was `banked' during a transitional period (to 1974). After that it could be deducted from resource profits up to a maximum of 25% of such profits in any one year, with the excess carried forward. To promote exploration and mine de¬velopment in Canada, the earned depletion allowance plus the continued deductibility of exploration and development expendi¬tures permitted the recovery of risk capital before taxation. The three-year tax holiday, however, disappeared. Also, mining com¬panies that did not reinvest in exploration lost the depletion allowance benefit.

Jan 1, 1989