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By Peter H. Fletcher

THE ECONOMIC THEORY It will assist in the understanding of the Resource Rent Tax ("RRT") proposals in Australia if the economic theory behind the tax is briefly explained. The idea goes back to the concept of rent put forward by the nineteenth century economist David Ricardo. His analysis was broadly as follows: A tenant who farms land which is just on the margin of economic viability cannot afford to pay his landlord any rent, because the value of the crop produced by such marginal land is equal to the cost of producing the crop, plus the cost of keeping the tenant alive. There is nothing left out of which to pay rent to landlord. A tenant who farms good land can afford to pay his landlord rent -- but the maximum amount of rent that he can be asked to pay is the excess of the value of the crop produced by the good land over the cost of producing the crop and of keeping the tenant alive. Adapting this theory to the taxation of mining projects, modern economists who favour this system of taxation say that a profitable mining (or resource) project produces rent in the Ricardian sense. The amount of the rent is the excess of the profits by the project over the amount of profit which is required to attract the taxpayer to invest in the project in the first place. This explains why the tax is called "Resource Rent Tax". PAPUA NEW GUINEA PRECEDENT Although Papua New Guinea ("PNG") is now independent of Australia, there are still close links between the two countries, and strong similarities between their respective tax regimes. PNG introduced an Additional Profits Tax ("APT") in 1978. In many respects, Australia's RRT proposals follow the precedent set by PNG1s APT. However, in practical terms, not a great deal can be learned at this stage from PNG's experiences since, according to the writer's understanding, no PNG mining project has yet paid any APT. The Bougainville mine is not liable to APT, being subject to tax under its own separate Act, which contains a different formula. Outline of PNG Additional Profits Tax. PNG has two versions of Additional Profits Tax ("APT) - one applying to general mining, the other to petroleum mining. The two versions are very similar. The general mining version is described below. The tax applies on a licence by licence basis. This means that losses on Licence A cannot be offset against profits on Licence B. Expenditure relating to two or more licences, is apportioned "in such manner as the Chief Controller thinks reasonable". Tax is levied on the "accumulated value of net cash receipts" at the rate of (70 - n)% where n=the rate of income tax. The accumulated value of net cash receipts ("av") is calculated as follows: Calculations commence from the first year in which substantial expenditure was incurred on the construction of facilities for the carrying out of mining operations on the licence. For that year the av consists of the total allowable expenditure to date on that lease. For the second year, the av is the av at the end of year one indexed in accordance with the statutory formula set out below, plus the total allowable expenditure in year 2. For year 3, the av is the av at the end of year 2 adjusted by the index factors, plus the total allowable expenditure in year 3. This process is repeated year after year. When the licence starts to earn revenue, the revenue is deducted from total allowable expenditure for that year. If revenue exceeds total allowable

Jan 1, 1985

By Charles A. Beasley

Coal conversion to electricity or to substitute natural gas requires a significant quantity of natural and human resources including, in addition to the coal resource base, land, water and the construction and operating labor force. Each method of coal conversion has its advantages and disadvantages relative to conversion efficiency, preferred method of resultant energy transportation, resources consumed, and impact on the environment. Regulations which have been passed in recent years to maintain or restore the pre-project environment can add significantly to the capital and operating costs of both a conversion facility and its associated mine.

Jan 1, 1983

By D F. S Natusch, R J. Hooper

Recent lignite investigations indicate their potential as a strategic long-term fuel resource. This potential however would be determined not only by lignite quantity and quality, but also by economic, physical and social resources required to support it. The following discussion uses the example of a typical lignite mining operation to review the major resource requirements. While recognising that the implications of supplying those resources may be as important as their actual existence, this paper has purposely omitted such discussion as this will be one of the main target areas for the next phase of investigations.

Jan 1, 1983

By Yeliseyev AK, Shestakov AM

Comminution is the most power-intensive process in the technology for ferrous quartzite concentration. That is why improving comminution efficiency leads to the most appreciable economic effect on the concentration process. The trend towards reducing the lump size of crushed ore before charging the mill is considered to be of major importance in improving comminution efficiency. A considerable number of investigations have been performed in this direction. At the same time, a strong interest is also maintained in the increase of comminution efficiency due to optimisation of process taking place in the mill. Recently, investigations of the power intensity of the breaking process inside the mill have been carried out at the Krivoy Rog Mining Institute. It was ascertained that the routine conditions of comminution at a low mill ball charge ratio resulted in an unnecessarily high power consumption due to the force of impact of falling and milling bodies far exceeding the power required for comminution. For example, the power value for falling balls of 60 - 125 mm in diameter reaches 0.3 kNm, and the force and stress due to ball contact with the lining reaches 60 kN and 250 MPa respectively. These values exceed the force required for comminution by a factor of ten. Analysis of the mechanism of ore particle size reduction during comminution in the ball mill indicates that the size reduction is due to impact load, attrition load, and static load. The efficiency of size reduction is very low. During comminution in the ball mill, impact loads prevail and amount to 85 - 90 per cent of the total load. In this situation, not more than 10 - 15 per cent of destruction is due to attrition.

Jan 1, 1993

By Richard C. Corson

"Modern microprocessor systems make it possible to use several variables to anticipate changes in the process and to react with responses before upsets can be magnified by the process or by control action.Through tighter control, ""insurance"" can be eliminated from process set points without affecting product quality. In actual operation with a traveling grate furnace this control philosophy has produced savings of up to 20% in fuel consumption and 8% in fan power usage while producing a more consistent quality product.IntroductionA straight grate indurator, or pelletizing machine, consists of a continuo us moving train of pallets on which a feed stream of unfired, ""green"" pellets is deposited on a hearth layer o f fired pellets. This bed moves through several zones in the furnace where it is dried, preheated, fired and cooled by streams of gases which are pulled or blown through the bed by a series o f large process fan s. Control systems for straight grate plants are designed to maintain gas flow through the machine to ensure that sufficient time and heat are available to raise the temperature of the entire green bed to 1300°C where hematite bonding take s place.For the pas t two year s a new approach to control systems using microprocessor-based instrumentation has been designed and tested in an existing plant with a straight grate indurating furnace processing magnetite ore. The purpose of the test was to determine the most efficient operating setpoints for all levels of production above fifty per cent of design capacity. Through a combination of feed forward control, variable setpoints and additional loops, significant savings have been realized. Thus far the project has taught us much about control systems design and operation, energy utilization, and the process itself."

Jan 1, 1983

From December 1994 to November 1997 Odin MiningÆs Estero Hondo alluvial gold mine in western Ecuador washed almost 3.2 million bank cubic metres of gravel to produce just over 2600 kilograms of pure gold at a recovered grade of about 0.8 grams per bank cubic metre. The operation was a simple open pit. Draglines stripped the overburden, backhoes mined the gravel, and trucks transported the ore to a stationary, gravity-based wash plant for processing. At start-up the planned throughput was 55 000 bank cubic metres/month, but a year later this had been increased to 100 000 bank cubic metres/month. From April 1993 to July 1997 a total of 440 churn drill holes and 15 pits were sunk to test the property. The methods used to prepare the resource and reserve estimates from the raw field data are described, and seven sets of completed estimates are used to track the evolution of the projectÆs resource/reserve base through the exploration, feasibility and production stages.

Jan 1, 2003

By Marcel Vallée

"Abstract - Traditionally, the emphasis in ore and reserve inventory has been to provide fairly simple definitions and presentations for reporting to shareholders and the investing public. The recent introduction of the mineral resource category aims to take into account the "part of the deposit that cannot yet be produced or extracted legally and profitably." Recent proposals still place insufficient emphasis on relating resource/reserve reporting definitions more closely to the needs of mining and exploration operators for the estimation and inventory of these basic material assets.In most schemes, significant ambiguities and shortcomings remain. These concern the potential economic interest of resources, the concept of continuity which is fundamental to the estimation of volumes, mass and grades, the objectives of the production feasibility study and the requirements of the geology, engineering and economic appraisals leading to it, and the "availability" of the permits required to start mine development. Up to now, no industry-wide formal consensus has yet been reached for any of these steps, nor for reconciliation between successive statements.A resource/reserve inventory scheme is presented here that is based on ISO 9000 principles and the Australasian system. Explicit criteria and transition points are proposed to define resource and reserve. Similarly, appropriate criteria are proposed to classify the three mineral resource and two ore reserve categories, based on geological and value continuity and on the objectives of the feasibility study. This scheme offers a way to develop ISO 9001 certification of resource/reserve estimation procedures for mining operations and supply exploration companies with an appropriate inventory system, to allow better information for the shareholders and the investing public.Résumé - L’objectif des inventaires des minerais et des réserves est, depuis le début du siècle, de fournir des définitions simples et d’ordre général visant les actionnaires et le public investisseur. L’introduction d’une catégorie de « ressources minérales » fournira un cadre tenant compte de la "portion d’un gisement qui ne peut encore être extraite ou exploitée légalement et à profit." Cependant, les propositions récentes de systèmes d’inventaires ne comportent pas des définitions des ressources et réserves qui tiennent compte suffisamment des besoins des opérateurs en exploitation et en exploration minière.La plupart des systèmes comportent des ambiguïtés et des carences. Citons la susceptibilité d’exploitation commerciale des ressources, la continuité qui est au centre de l’estimation des volumes, masses et teneurs, les objectifs de l’étude de la faisabilité de la mise en production, le niveau requis des travaux de géologie, d’ingénierie et d’économique qui y mènent, ainsi que la disponibilité des permis dont dépend la mise en production. Il n’y a jusqu’à maintenant aucun consensus dans l’industrie sur ces points, ni sur des procédures de réconciliation entre les estimations successives.Le système d’inventaire des ressources/réserves proposé ici s’appuie sur la structure ISO 9000 et le système australien. Des critères et des points tournants explicites sont établis pour définir les ressources et les réserves. De même, les définitions des trois catégories de ressources et deux catégories de réserves, s’apparent sur la continuité de la géologie et des teneurs et sur les objectifs de l’étude de la faisabilité. Ce projet offre une voie pour développer les critères de la certification ISO 9001 pour les opérations minières, tout en fournissant un système approprié d’inventaire aux compagnies d’exploration, pour mieux informer les actionnaires et les investisseurs potentiels."

Jan 1, 1998

By Luc Rombouts

The resources and reserves calculation of marine diamond deposits should be based on a systematic sampling grid. The distribution of the sample grade results tends to be very skew and has a large variance. A bias is easily introduced due to the fact that the grade distribution of the samples is very different from the grades of the area of influence. The temptation is always there to extrapolate the highest grade samples simply to their area of influence. If this is done, the higher grade areas will be systematically overestimated, while the lower grade areas will be underestimated. Such a bias should surely be avoided by weighing the sample grades in such a way with their neighbours, so that the estimated grades have a similar distribution as the grades of the blocks. The grade distribution of small mining blocks tend to be lognormal-like. If the coefficient of variation is known, i.e. the standard deviation divided by the mean, then the grade distribution of the small mining blocks is relatively well-defined. The distribution of the diamonds within the deposits can be simulated, based on the histogram of the sample results and on the semivariogram. The diamonds tend to cluster in trapsites. From the semivariogram and the histogram, the average size and spacing between trapsites, and the grade distribution within the trapsites, can be calculated using the model of the General Family of Discrete Distributions. Using such a simulated deposit, the grade distribution for different block sizes can be obtained. The grade distributions become more lognormal-like with increasing block sizes, as the trapsite effect is reduced.

Jan 1, 1998

By T. Lee

Ongoing economic success for mining companies is dramatically enhanced when they really know what they are harvesting, such that they can accurately forecast their head grades for any time period in excess of a month. This is an uncommon experience. It is a very common scenario for resource/reserve estimates to overstate the concentration (grade). Grade is a critical input of revenue, and hence, it is to cashflow projections. With the current direction being taken by the legal climate, it is no longer adequate for directors to accept the resource/reserve estimates of experts at face value. This is because resource/reserve estimates are the foundation of primary mineral economic decisions. Directors of mining assets need to undertake their own due diligence analysis of these estimates, in the best interest of themselves, and the company's shareholders. In the light of the industry's past achievements, this is quite a challenge. This paper suggests a set of new objective tools for directors to undertake an overview of the unique commodity concentration pattern and assess associated economic dynamics of each mineralization. These tools allow the examination of global graphical trends that can be helpful to directors and others in undertaking due diligence of resource/reserve statements. Ensure that it smells right.

Jan 1, 1995

By L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By Hulton SJ, MacKenzie DH

The Broken Hill orebody within the leases of ZC Mines is still a major lead-silver-zinc resource after over 80 years of mining. It illustrates particular problems encountered in resource and reserve estimation in old mines. The six mined ore lenses are characterised by three features: ò complex external geometry, ò high internal grade variability, ò bimodal grade distribution. The high grade 3, 2 and 1 lenses and B lode have sharp external contacts but contain some low grade internal zones. By contrast A lode is of lower average grade and comprises an extensive but geometrically variable mineralised zone within which are numerous irregular bodies of high and medium grade ore. Geological factors are the main source of variability in reserve estimation, which historically has been conservative. For many years the geological resource tonnage has been maintained at a level sufficient to make up for extraction but at a gradually declining grade. Using a geological block cut off grade of 10% Pb + Zn the present in situ resource is 53.8 Mt grading 8% lead and 13% zinc. Using empirical cut factors a "recoverable reserve" is derived from this large geological tonnage. There is some doubt that the "recoverable reserve" is conservative enough to reflect mining reality. The most sensitive indicator of forthcoming change in total resource or insufficient drilling and development is given by changes in the tonnage and grade of possible ore from which the proved and probable categories are derived. Examples are given to show that where reserves are drill indicated, the delineation required for proved ore reserves must be enhanced to achieve final stope design. The move in recent years to greater emphasis on non entry mining and lower recovery of in situ material poses a dilemma for a mine which has practised 100% recovery for much of its past. The need for a realistic reserve assessment in current terms needs to be balanced against the fullest possible geological knowledge of the resource to cater for future technological developments.

Jan 1, 1987

Resources and reserves are critical inputs into the determination of an operating mineÆs financial results and balance sheets, but how well understood is this fact. Do the investors, directors, accountants and geologists/engineers responsible for preparing or relying on relevant aspects of the end results properly understand the inputs and outputs and the associated risks that may be established. The first step is to understand how financial reports are impacted. The most obvious, and best known, impact is in the calculation of depreciation and amortisation charges against long term assets. In addition, however, there is a requirement to regularly determine whether asset book values are impaired û this is nearly always performed globally by the preparation of a discounted cashflow model for a mine which is usually based on a mine life as determined from the resource and reserve statement û the particular driver here is normally the short and long term production plans. A key aspect of the short term production plan is that it would normally not assume that the reserve and resource statement implies consistent grade, stripping ratios, etc. However, outside of the early years of a plan, more generic assumptions of these variables are often made in conjunction with the reserve and resource statement. Depending on the timeframe of the detailed production plans, this can have a large impact on a projectÆs net present value. Other financial balances that may also be impacted include restoration and rehabilitation provisions, retrenchment provisions and deferred or equalisation stripping accounts. The age old question of whether all reserves should be used or whether some or all of the resources should be included for financial reporting purposes has never been adequately resolved. It is our view that there should be no prescriptive answer to this question but judgement of all professionals involved in the process needs to be included. Furthermore, the company needs to be able to support their conclusions with well thought out and appropriate answers. This may not be in line with the approach that certain accounting standard setters may be proposing or taking, and this paper will outline the current status of global requirement and the likely future directions. Whether reserves or resources are utilised, does not change the key requirement that those preparing or using reserve and resource statements need to understand key aspects. For example: geologists/engineers do they know how reserves or resources will be used? have they imparted information on variability of key drivers such as grade or depth or dilution? do they know that major financial/business altering decisions may be made based on the analysis? accountants do they understand where the numbers have been derived from and the assumptions that may have been made in their determination? do they understand the degree of accuracy (or inaccuracy) that may exist particularly with resources)? do they understand the history of resource reconciliations and what it may mean for the future? directors do they understand the processes undertaken by the company to prepare the financial report and the interaction between the geologists/engineers and accountants? do they understand the potential sensitivity of results to the input variables? Financial reporting is extremely reliant on the use of the reserves and resources, however, the geologists/engineers, accountants and directors do not always understand the interactions between themselves which may lead to misleading public reporting. More education and communication between various parties is needed.

Jan 1, 2002

By Jasper L. Stuckey

PYROPHYLLITE, first identified as soapstone,1 later as agalmatolite,2 and finally as pyrophyllite,3 has been known to occur in North Carolina for more than 130 years and has been produced intermittently in commercial amounts for the past 100 years. Pyrophyllite mining, however, has become a major industry in North Carolina only during the past 25 years. North Carolina and California are the chief producing states. Current annual production averages 125,000 tons, of which slightly more than 90 pct comes from North Carolina. Distribution and Geologic Setting: All known pyrophyllite deposits in North Carolina are associated with rocks of the Carolina Slate Belt,4 which is composed of a vast series of metamorphosed volcanic and sedimentary materials, occurring as two zones extending in a northeast-southwest direction across the state. The larger of these zones, lying in the central Piedmont region, varies from 8 to 50 miles wide. The smaller zone lies along the eastern edge of the Piedmont region and is partly covered by coastal plain sediments.

Jan 1, 1958

By R. J. Miller

The current National commitment to expanding the human presence into the solar system will clearly require major facilities in Earth orbit or possibly on the moon. Such facilities will need large amounts of materials for structural modules, life support, propulsion, and shielding. The heavy transportation costs in fuel required to lift materials from the Earth's surface make a terrestrial-based space system inherently inefficient. A more cost-effective approach would be to provide as much of the required materials as possible from other bodies in space not having the high cost of Earth launch. This paper identifies potential targets for space-based resource utilization, constraints on exploitation, and relative benefits of various sources.

Jan 1, 1992

By B. W. Dyer

In 1924, the Crescent Eagle Oil Co., while drilling the salt section of the Paradox formation in Grand County, Utah, encountered a salt that did not appear to be sodium chloride. This salt was analyzed and showed the presence of potash minerals, both sylvite (KCl) and carnallite (KMgC12.6H2O). Because of the high potash content of the sample, there was considerable speculation: (I) as to whether the hole had been salted, and (2), if not, the extent, richness, and the depth at which the deposit occurred. The discovery caused a large amount of activity in the area. During the next few years, 68 potash prospecting permits were issued by the Government, 24 under the Act of 1917 and 44 under the Act of Feb. 7, 1927, each including about four sections of land. Several holes, all shallow, were drilled for potash. A number of holes were drilled for oil into the salt horizon and the cuttings collected at the oil wells were examined petrographically and chemically. The shallow test holes were not sufficiently deep to reach the potash horizon and revealed nothing of value, but several of the oil test holes gave some indication of where potash might be found. Location and Geology of Deposits The potassium and magnesium salts have been found in various places from the Denver and Rio Grande Western Railroad tracks about seven miles west of Thompsons, in eastern Utah, to Cane Creek, a tributary of the Colorado River— a distance north and south of about 35 miles. In this locality, there appear to be five separate deposits: the Crescent Eagle area, which is in T. 22 S., R. 19 E.; the Salt Valley area, in the vicinity of the north-south line of T. 23 S., between R. 20 E. and R. 21 E.; the Seven Mile area, in the eastern part of T. 25 S., R. 20 E.; the Cane Creek area, on the Colorado River, in T. 26 S. and T. 27 S., R. 20 E. and R. 21 E.; and the Salt Wash area, in T. 22 S. and T. 23 S., R. 16 E. and R. 17 E. (Fig. I.) The Crescent Eagle and Salt Valley areas are in the Salt Valley anticline, some of the wells being in the fault graben and others outside. Structurally, the Salt Valley anticline is very complex, and can be described in general terms as a northwesterly plunging collapsed anticline about 15 miles long. In the Crescent Eagle area, the valley graben is about 1 1/2 mile wide and the salt probably forms a plug, the apex of which is in the vicinity of the Crescent Eagle well. Owing to the complex structure, there has been every opportunity for flowage in the salt to cause local thinning or thickening of beds. The regular succession of formations in the general area* is: Cretaceous Mancos Dakota Jurassic Morrison Summerville Entrada Carmel

Jan 1, 1948

By B. W. Dyer

In 1924, the Crescent Eagle Oil Co., while drilling the salt section of the Paradox formation in Grand County, Utah, encountered a salt that did not appear to be sodium chloride. This salt was analyzed and showed the presence of potash minerals, both sylvite (KCl) and carnallite (KMgC12.6H2O). Because of the high potash content of the sample, there was considerable speculation: (I) as to whether the hole had been salted, and (2), if not, the extent, richness, and the depth at which the deposit occurred. The discovery caused a large amount of activity in the area. During the next few years, 68 potash prospecting permits were issued by the Government, 24 under the Act of 1917 and 44 under the Act of Feb. 7, 1927, each including about four sections of land. Several holes, all shallow, were drilled for potash. A number of holes were drilled for oil into the salt horizon and the cuttings collected at the oil wells were examined petrographically and chemically. The shallow test holes were not sufficiently deep to reach the potash horizon and revealed nothing of value, but several of the oil test holes gave some indication of where potash might be found. Location and Geology of Deposits The potassium and magnesium salts have been found in various places from the Denver and Rio Grande Western Railroad tracks about seven miles west of Thompsons, in eastern Utah, to Cane Creek, a tributary of the Colorado River— a distance north and south of about 35 miles. In this locality, there appear to be five separate deposits: the Crescent Eagle area, which is in T. 22 S., R. 19 E.; the Salt Valley area, in the vicinity of the north-south line of T. 23 S., between R. 20 E. and R. 21 E.; the Seven Mile area, in the eastern part of T. 25 S., R. 20 E.; the Cane Creek area, on the Colorado River, in T. 26 S. and T. 27 S., R. 20 E. and R. 21 E.; and the Salt Wash area, in T. 22 S. and T. 23 S., R. 16 E. and R. 17 E. (Fig. I.) The Crescent Eagle and Salt Valley areas are in the Salt Valley anticline, some of the wells being in the fault graben and others outside. Structurally, the Salt Valley anticline is very complex, and can be described in general terms as a northwesterly plunging collapsed anticline about 15 miles long. In the Crescent Eagle area, the valley graben is about 1 1/2 mile wide and the salt probably forms a plug, the apex of which is in the vicinity of the Crescent Eagle well. Owing to the complex structure, there has been every opportunity for flowage in the salt to cause local thinning or thickening of beds. The regular succession of formations in the general area* is: Cretaceous Mancos Dakota Jurassic Morrison Summerville Entrada Carmel

Jan 1, 1948

By J. L. Gillson

In a brief summary of the many occurrences of fluorspar in our western states, it is not possible to go into detail in regard to the geology, mining and milling methods, and reserves about individual deposits. Rather a broad review is made of the occurrences and an analysis of how the western deposits may fit into our future domestic economy is presented. General Statement on Fluorspar Situation Fluorspar has been used for years as a flux in the manufacture of basic open-hearth steel, in foundry cupolas for melting pig iron, in the manufacture of opalescent glass and in the preparation of hydrofluoric acid. In 1880 the annual production of fluorspar in the United States was around 4000 tons per year. By 1900 it was up to 21,656 tons and between 1902 and 1908 it averaged about 40,000 tons annually. Prices were then so low, by present standards, that it seems impossible to believe now that mining could have been performed profitably at the price levels then prevailing. In 1890 fluorspar sold at the mines for $6.70 per ton, in 1901 for $5.81, in 1916 for 85.92. When the United States entered World War I, flyorspar production and price skyrocketed; the production reached 263,817 tons in 1918, with prices above $20.00 per ton, and prices were even higher in 1919 and 1920. After 1920, the domestic production fell from the 1918 level to about 125,000 tons annually and the average price dropped back to about $18.00 per ton. By 1935 the average price had fallen to $15.00, but in 1940 with a rising demand the average price of all grades had gone back up to $20.31. Today it is 75 per cent higher than in 1940 and presumably the price of acid grade at .least would be even higher if it were not for price ceilings. The first subsequent year that the domestic production exceeded that of 1918 was 1941, and the 1944 production is expected to exceed 400,000 tons, or over one and a half times that of 1918. In five-year periods, average production and imports were as are shown in Table I. Many people concerned with the consumption of fluorspar believe that the postwar period ahead will show a repetition of price trends of the last such period. They believe that imports will be again an important factor in the available supply and the price will fall back gradually toward the prewar level. The following basic factors are pertinent in analyzing this conclusion:

Jan 1, 1948

By J. L. Gillson

In a brief summary of the many occurrences of fluorspar in our western states, it is not possible to go into detail in regard to the geology, mining and milling methods, and reserves about individual deposits. Rather a broad review is made of the occurrences and an analysis of how the western deposits may fit into our future domestic economy is presented. General Statement on Fluorspar Situation Fluorspar has been used for years as a flux in the manufacture of basic open-hearth steel, in foundry cupolas for melting pig iron, in the manufacture of opalescent glass and in the preparation of hydrofluoric acid. In 1880 the annual production of fluorspar in the United States was around 4000 tons per year. By 1900 it was up to 21,656 tons and between 1902 and 1908 it averaged about 40,000 tons annually. Prices were then so low, by present standards, that it seems impossible to believe now that mining could have been performed profitably at the price levels then prevailing. In 1890 fluorspar sold at the mines for $6.70 per ton, in 1901 for $5.81, in 1916 for 85.92. When the United States entered World War I, flyorspar production and price skyrocketed; the production reached 263,817 tons in 1918, with prices above $20.00 per ton, and prices were even higher in 1919 and 1920. After 1920, the domestic production fell from the 1918 level to about 125,000 tons annually and the average price dropped back to about $18.00 per ton. By 1935 the average price had fallen to $15.00, but in 1940 with a rising demand the average price of all grades had gone back up to $20.31. Today it is 75 per cent higher than in 1940 and presumably the price of acid grade at .least would be even higher if it were not for price ceilings. The first subsequent year that the domestic production exceeded that of 1918 was 1941, and the 1944 production is expected to exceed 400,000 tons, or over one and a half times that of 1918. In five-year periods, average production and imports were as are shown in Table I. Many people concerned with the consumption of fluorspar believe that the postwar period ahead will show a repetition of price trends of the last such period. They believe that imports will be again an important factor in the available supply and the price will fall back gradually toward the prewar level. The following basic factors are pertinent in analyzing this conclusion:

Jan 1, 1948

By Jasper L. Stuckey

It is not known when kaolin mining was first begun in North carolina, Evidence, in the form of excavations and primitive tools, indicates that some of the deposits were worked in prehistoric times. It has been suggested that the prehistoric mining was for mica, but the workings were all in altered or partly altered pegmatite material and the dumps do not represent the amount of material removed. some of the early openings may have been made in search of kaolin or semi-kaolinized feldspar which was sold to English1 traders along the coast and used in some Of the early English porcelains. In 1744,2 an application was made for an English patent to produce porcelain from an earthy mixture obtained from the Cherokee Nation in North America. It is well established, however, that the occurrence of kaolin in western North Carolina was known in England by 1767. In that year, Josiah Wedgewood sent T. Griffiths3,4 to what is now Macon County, North Carolina, to secure a supply Of kaolin for use in England. Griffiths diary, now in Etruria Museum, Stokes-on-Trent, contains a most interesting account of his experience. Kaolin was discovered at St. Austell, England, shortly after the voyage Of Griffiths, which probably accounts for the lack of further interest in American kaolin. Between 1767 and 1888, there are no records of kaolin mining in North Carolina. In the latter year, however, mining was begun near Webster, Jackson County, and, in the intervening period, has become an important industry. 'Or some 20 years, kaolin mining was carried On chiefly in Jackson, Macon, and Swain Counties. About 1904, it was begun in the Spruce Pine district and for the past 20 Yea's most of the kaolin mined in the State has come from Avery, Mitchell, and Yancey Counties. Distribution The kaolins of North Carolina are limited in occurrence to the Piedmont Plateau and Appalachian Mountain area of the State. While kaolins are widespread in the Piedmont Plateau, having been prospected for in Rutherford, Cleveland, Gaston, Granville, Lincoln, Catawba, Ire-dell, Richmond, Moore, Randolph, and Montgomery Counties, the production from that area has never been important. The known deposits of commercial importance are limited entirely to the mountain area of the State. While kaolins occur widely distributed throughout the mountain area and have been prospected for in many counties of that area, commercial production has come chiefly from two districts. One of these includes Jackson, Macon, Swain, and Haywood Counties. The other includes Avery, Mitchell, and Yancey Counties. Geology With few exceptions, all the known kaolin deposits in North Carolina contain

Jan 1, 1948

By Jasper L. Stuckey

It is not known when kaolin mining was first begun in North carolina, Evidence, in the form of excavations and primitive tools, indicates that some of the deposits were worked in prehistoric times. It has been suggested that the prehistoric mining was for mica, but the workings were all in altered or partly altered pegmatite material and the dumps do not represent the amount of material removed. some of the early openings may have been made in search of kaolin or semi-kaolinized feldspar which was sold to English1 traders along the coast and used in some Of the early English porcelains. In 1744,2 an application was made for an English patent to produce porcelain from an earthy mixture obtained from the Cherokee Nation in North America. It is well established, however, that the occurrence of kaolin in western North Carolina was known in England by 1767. In that year, Josiah Wedgewood sent T. Griffiths3,4 to what is now Macon County, North Carolina, to secure a supply Of kaolin for use in England. Griffiths diary, now in Etruria Museum, Stokes-on-Trent, contains a most interesting account of his experience. Kaolin was discovered at St. Austell, England, shortly after the voyage Of Griffiths, which probably accounts for the lack of further interest in American kaolin. Between 1767 and 1888, there are no records of kaolin mining in North Carolina. In the latter year, however, mining was begun near Webster, Jackson County, and, in the intervening period, has become an important industry. 'Or some 20 years, kaolin mining was carried On chiefly in Jackson, Macon, and Swain Counties. About 1904, it was begun in the Spruce Pine district and for the past 20 Yea's most of the kaolin mined in the State has come from Avery, Mitchell, and Yancey Counties. Distribution The kaolins of North Carolina are limited in occurrence to the Piedmont Plateau and Appalachian Mountain area of the State. While kaolins are widespread in the Piedmont Plateau, having been prospected for in Rutherford, Cleveland, Gaston, Granville, Lincoln, Catawba, Ire-dell, Richmond, Moore, Randolph, and Montgomery Counties, the production from that area has never been important. The known deposits of commercial importance are limited entirely to the mountain area of the State. While kaolins occur widely distributed throughout the mountain area and have been prospected for in many counties of that area, commercial production has come chiefly from two districts. One of these includes Jackson, Macon, Swain, and Haywood Counties. The other includes Avery, Mitchell, and Yancey Counties. Geology With few exceptions, all the known kaolin deposits in North Carolina contain

Jan 1, 1948