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By Richard P. Graff

Author?s note: Diversity in practice exists in the application of Generally Accepted Accounting Principles (GAAP) for purchase price allocations with respect to the recognition of Value Beyond Proven and Probable Reserves or VBPP, as defined by the Emerging Issues Task Force (EITF) in EITF 04-3: ?Mining Assets: Impairment and Business Combinations?. This diversity appears to arise from differing interpretations of what constitutes sufficient information to value components of VBPP in business combinations. Concerned with this diversity in practice, respected members of the mining community formed a working group which prepared an issues paper that discussed this diversity and provided recommendations for recognition and valuation of VBPP in business combinations. The working group then submitted this paper to the EITF, requesting further guidance be issued on the concept of VBPP. In conjunction with the submission to the EITF, the working group also provided this paper to the United States Securities and Exchange Commission (SEC) for review and comment. The EITF discussed this issue at its May, 2008 agenda committee meeting. However, it declined to add this topic to the EITF agenda for further consideration. Absent additional guidance on VBPP from the EITF, the working group submitted a proposed definition of VBPP to the U.S. Securities and Exchange Commission for its consideration. The following article, which is consistent with the issues paper that was submitted to the EITF and the SEC, discusses the components of and valuation techniques for VBPP. The correspondence with the U.S. Securities and Exchange Commission, which includes the proposed definition of VBPP by the working group, is attached as Appendix 1 to this article.

Jan 1, 2008

By Simon D. Strauss

This article is part of a presentation Strauss made Dec. 3, 1988 at the sixth annual American Mining Hall of Fame (AMHofF) banquet in Tucson, AZ. At the banquet, the Mining Club of the Southwest honored Strauss by naming him the 1988 recipient to the AMHofF. (Industry newswatch, page 6). Introduction In the last two decades, there have been two previous periods of sharply rising copper prices. One was in 1973-74; the other in 1979-80. In both cases, a short period of high copper prices was followed by steep and prolonged periods of low prices. In the language of the market analyst, the high prices were called spikes. Is it likely, then, that three or four years from now the present price of copper will show up as a spike in the charts? There are substantial differences between the current position and the markets of 1973-74 and 1979-80. In 1973-74, US copper prices were subject to government-imposed price ceilings of $0.60 per lb through early December, 1973. These were increased to $0.68 per lb through May, 1974. Meanwhile, mines outside the United States were free of restraint. Rising demand in London pushed the price above $1 per lb in the third quarter of 1973. In early April 1974, it reached a peak of $1.50 a lb. In May of that year, the US ceilings were removed and the domestic price began to rise. What were the causes of this price strength? While ceilings held the domestic price below the world market, domestic consumers acquired all the tonnage offered by US mines. Meanwhile, in the world market, buyers feared prolonged shortages. The Club of Rome had warned that world economic growth would be limited by impending depletion of mineral resources. There was al so concern about a copper cartel that might increase copper prices even more. In early 1974, at a special United Nations session, developing-country spokesmen warned the industrialized world to expect high commodity prices. Also adding to the concerns of copper buyers was the fear that when US wage contracts expired in mid-1974, protracted strikes might ensue. The combined effect of this atmosphere was that consumers accumulated large amounts of copper, far above their normal carry. By midsummer, the position changed radically. While some strikes did occur in the United States, they proved short-lived. The most significant development was a massive economic recession. The energy crisis was causing enormous dislocations in the world economy. Construction activities were sharply reduced and automobile sales plummeted. Public confidence was shaken. Copper sales fell precipitately as consumers decided to draw down their swollen inventories. The price came down too. In April 1974, the London price- as noted-was $1.50 per lb. By the end of the year, it was down to $0.57 per lb. In 1973-74, the copper price rise was fed by fears of shortages, cartels, and strikes. In 1979-80, the market rose on the strength of good demand plus political and military instability. The price rise was also fed by inflationary trends, exemplified by speculation in precious metals. Prior to this second spike in copper prices, the market had been depressed despite economic recovery. Despite reduced US output, copper production in the rest of the world was increasing. Though consumption was rising, surplus stocks reached unprecedented levels. At the end of 1977, the aggregate of stocks at the refineries and in the exchange warehouses was 1.5 Mt (1.67 million st). That was more than three months' shipments at then rates of consumption. In 1978, the statistical position improved. Shipments of refined copper that year were 8% greater than in 1977. The result was reduced visible stocks but -just as was to be the case in 1984-86 - the price remained depressed. In 1979, an even sharper drop in visible stocks occurred as shipments rose by another 4%. This time, though, the price responded. In December 1978, the price in current dollars had been less than $0.70 per lb. By the end of 1979, it was above $1 per lb. And in the first quarter of 1980, it averaged more than $1.20 per lb. Military and political developments were a factor. The hostage crisis in Iran was followed by the Soviet invasion of Afghanistan. To many, it appeared that war might result if the Soviets pushed on into Pakistan. At the same time, speculation drove gold and silver prices to incredible levels. As silver prices rose above $40 per oz), copper above $1 per lb did not seem unreasonable. Then, in March 1980, the precious metals price boom collapsed. Copper prices also retreated, though not as much. In February 1980, the copperprice averaged $1.32 per lb. By December, it had dropped to $0.85 per lb. In 1981 and 1982, the decline continued. The present copper situation Why is the current situation different from these two previous episodes of high prices? First of all, today's inventories are far lower than they were in either 1974 or 1980, when the price declines began. The stocks at refineries and in exchange warehouses are substantially less than they were then. More significantly, consumers today have very limited holdings compared with stocks they carried in 1974 and 1980. Even if faced with a downturn in their own business, copper consumers will not be able to stay out of the market. To the extent they have any business at all, they will have to buy copper. And on the supply side, there is also a significant difference. The year 1988 has been unusual. US production is up sharply, responding to higher prices. But production is little changed in the rest of the Free World. Indeed, several of the major producing countries have mined less copper this year than in 1987 despite the prices increases. Peru has had labor problems that have cut its output. Zambia and Zaire suffer from shortages of expatriate technicians, not to mention spare parts. They also suffer from the failure to maintain equipment or perform adequate development. In Chile, the two largest mines, Chuquicamata and El Teniente, have not met their production targets. Chuquicamata is struggling with high arsenic content in its ore. And, in late 1987, severe rockbursts hampered operations at El Teniente. In addition, depletion of some mines in Australia and South Africa has offset rising output at other properties. Indeed, when final mine output figures for 1988 become available, it may well be

Jan 1, 1989

By C. R. Landis

The Wyoming bentonite industry continued its run of stable, if not strong, growth in its complex markets. Growth at the macroscale was fueled by a strong domestic economy, the weakening of the U.S. dollar in the global market and strong worldwide global demand. Challenges to the benchmark of the industry were rapid and saw ongoing increases in raw material costs(pallets, bags and additives), higher energy costs and higher overall transportation costs for all modes of movement. Exports continued to be assisted by dollar depreciation (5 percent to 10 percent) from January 2004to January 2005. This depreciation followed the significant weakening of 2003. And it was most favorable during the pullback in fuel and shipping rates in the second half of the year.

Jan 1, 2005

By M. Akser, M. Tomas

Six Sigma is a methodology that uses a structured and disciplined approach to improve process performance (higher throughput, better recovery, lower cost, shorter cycle time, etc.). Specially trained people called “black belts” lead and manage Six Sigma projects. Black belts, with assistance from their team, ensure that projects follow the DMAIC (define, measure, analyze, implement and control) process phases. Timely completion of each project, with measurable deliverables, is key to Six Sigma’s significant financial success. Implementation of Six Sigma has been growing in recent years in a wide range of industries. The heavy mineral industry, like many other industries, could benefit from what Six Sigma has to offer. Specific Six Sigma project examples are included from DuPont’s Heavy Mineral Production Plant in Florida.

Jan 1, 2005

By Jan Krason

Introduction The South African Witwatersrand is the world's largest gold-bearing province and gold producing district. But the production capacity of the very big mines (Vaal Reef, Driefontein Cons., Western Holdings, Western Deep Levels, and others) is not as large as that of the Soviet Union's Muruntau gold mine. The Muruntau gold-bearing ore body was discovered in 1956-57, and has been in operation since that time. In the early 1970s, this mine produced 70 to 80 t/a (2.3 to 2.6 million oz per year) of gold. Within the last few years it has become the world's largest producing gold mine. Russian authors do not publish ore reserve or rate of production data. But it is very likely that the Muruntau mining complex, which involves several ore bodies, is currently producing about 143 t/a (4.6 million oz per year) of gold. The author has confirmed this by personal information from several knowledgeable Russian geologists. This amounts to one-half of

Jan 11, 1984

By Steve Kral

About 500 mineral-processing professionals from around the world gathered in San Francisco, CA in Oct. 22-27, 1995 for the XIX International Mineral Processing Congress (IMPC). Following the theme “Leading Mineral Processing into the 21st Century Through Advanced Technology,”186 speakers from 28 countries covered research and development activities and innovative processes. Subjects included comminution and simulation control, physical and chemical processing, flotation practices and fundamentals, precious metals processing and mineral waste and the environment.

Jan 1, 1996

By P. R. Dugan

Sulfur removal from high sulfur coal has several objectives including: a) reduction of the atmospheric load that contributes to the problem of acid precipitation; b) reduction of ash, which contributes to decreased energy transfer in boilers, as well as ash disposal; and c) alleviation of the social and economic dislocations related to uneven geographical distribution of sulfur in coal reserves. Cost in relation to the value of refined coal will govern the development of an emerging coal refining industry. Estimation of the premium paid by power companies for coal with a low sulfur content is a good estimate of the value that will be added as the result of refining. Estimates of premiums paid in 1984 are $28.65/t ($26 per st) for reduction of total sulfur from 370 to 1% S and greater than $28.65/t ($26 per st) for removal below 170 sulfur.

Jan 1, 1988

By R. L. Virta

Four companies mined ball call in four states in 2009, H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Kentucky-Tennessee Clay Co. (owned by Imerys Group), Old Hickory Clay Co. and Unimin Corp. Production, on the basis of preliminary data, was 820 kt (904,000 st) with an estimated value of $39.4 million. That was a 15-percent decrease in tonnage from 967 Mt (1.1 mil-lion st) with a value of $44.3 million that was produced in 2008. Tennessee was the top producing state with 59 percent of domestic production, followed by Texas, Mississippi and Kentucky. About 71 percent of production was airfloat, 18 perc

Jun 1, 2010

By C. Ford, R. E. Salas Rojas, J. P. Contreras Rodriquez, S. A. Pierce

Heightened environmental consciousness has resulted in the development of various international accords dealing with natural resource management. This international awareness is now being translated into regional and local initiatives that proactively implement collaborative environmental management programs. One such program was recently initiated in northern Chile in recognition of the interconnection of Andean salars. Cooperative efforts between industry, governmental agencies and academic professionals have resulted in the implementation of simultaneous environmental monitoring of flora and fauna in the salars of northern Chile. This coordinated effort is leading to an improved understanding of the migratory patterns of South American fauna, as well as improved access to an expanded database for the multiple user groups associated with the Andean salars. The El Abra Mine is actively participating in these coordinated monitoring efforts.

Jan 1, 1999

Lime production is the largest single chemical use for limestone and dolomite. The term “lime” in this review refers to high-calcium and dolomitic quicklime, their hydroxide forms and dead-burned dolomite. This review is restricted to a discussion of the U.S. lime industry. Production and consumption In 2004, according to preliminary data, U.S. lime production was about 20.1 Mt (22.1 million st), an increase of 900 kt (990,000 st) compared with 2003. Production in2004 was valued at about $1.4 billion. Commercial sales of lime totaled 18.6 Mt (20.5 million st) and captive production was 1.5 Mt (1.65 million st). Total U.S. consumption was about 20.2 Mt (22.2 million st). The majority of U.S. lime trade was with Canada.

Jan 1, 2005

By Jack T. Work

Spiraling costs in every segment of the open-pit mining cycle is a fact of life that every operator must reckon with. The introduction of various shock absorbing devices for rotary drilling is one recent innovation that may significantly reduce overall drilling cost, increase drill availability, and lower maintenance requirements. In a recent all-inclusive test in taconite ores, shock absorbers on Bucyrus-Erie BE 60R and Gardner¬Denver GD 120 rotary drills were directly responsible for overall savings of up to $41.06 per hour. What is It? A shock absorber is simply a device installed between the rotary drive head and drill steel that cushions the two. It functions in the same manner as springs and shocks on an automobile. Some benefits associated with use of the tool are readily apparent on a daily basis; other benefits are realized over longer time intervals and through continued use. A properly designed shock absorber will: •protect the drill from severe vi¬brations, improve rock bit performance, allow application of the best weight-on-bit and rotating speed under all drilling conditions, •function effectively over a wide range of applied bit weights, • have a spring rate soft enough to perform its primary function of absorbing both rotary and vertical vibrational forces generated by rough drilling, •be reliable and subject to as little maintenance as possible, •be easy to install and remove, and • be of such an economic benefit so as to offset the added expense of its application. A shock absorbing tool developed by BJ-Hughes Inc. was used in a recent test. The "Smoothdrill" is just one of the products currently available. This unit absorbs both rotary and vertical shock loads and has no mechanical parts so lubrication is unnecessary. A rebuild of the unit consists of removing the worn rubber element and inserting a new element, an operation taking less than one hour. Minimizing Vibrations Severe vibrations on a blasthole drill operating in broken and discontinuous formations have visible effects. These vibrations often cause structural damage when allowed to' continue, resulting in fatigue cracks in the mast and related structural components in the drill. When rough running formations are encountered, drilling must be interrupted and possibly shut down. Usually, the drill operator resumes drilling using less down pressures and various rotational speeds until firmer drilling is encountered. An effective shock absorber can substantially reduce these vibrational forces so more down pressure can be applied in bad ground. It is generally accepted that longitudinal vibrations and cyclic forces are more effectively reduced if a tool is designed to incorporate a relatively "soft" shock absorber. The softness of any shock absorbing tool is best judged by its spring rate-the weight required to produce a given amount of deflection, commonly expressed in units of kg per mm or pounds per inch of deflection. All shock tools use a resilient member such as rubber springs, steel springs, fluid, or gas springs to absorb

Jan 4, 1980

By G. E. d’Aquin

Sources of sulfur have varied based on technology and societal needs. It has been mined in its elemental form for centuries. Twentieth century technology brought thermal mining (Frasch, 1894) to the forefront of sulfur extraction. Then, by the 1980s, petroleum processing generated almost 40 percent of the 50 Mt (55million st) of sulfur in all forms (SAF) produced in the world. Metals processing (the reclamation of effluent gas by various means as “sulfur in other forms,” or SOF) followed at 30 percent of all sulfur values produced and then Frasch at 22 percent. Petroleum and gas processing now generate most of the elemental sulfur produced in the world. Single Two Frasch mines remain, one each in Iraq and Poland. Conventional mining of small to insignificant volumes also survives in Russia, Latin America and Indonesia. The volume of “recovered” sulfur (the name commonly given by the industry to hydrocarbon-derived material) generated will increase faster than energy consumption as oil and gas with greater amounts of sulfur are used and environmental restrictions on the sulfur content of the fuel consumed become more stringent.

Jan 1, 2005

By H. A. Taylor

Graphite is elemental carbon that crystallizes in the hexagonal system as six-sided platelets. It occurs naturally and is mined. And it can be made artificially from petroleum coke in the form of shapes (electrodes) and powders. The market for most kinds of graphite in most end-uses was good in 2004. The 2005 graphite market looks positive. The major graphite prices, as given in Industrial Minerals, remained unchanged throughout the year. The preliminary 2004 U.S. Geological Survey (USGS) prices for natural graphite showed almost no change for crystalline flake. They were $600/t ($544/st) in 2004 and$622/t ($564/st) in 2003. Mexican amorphous graphite was almost unchanged at $150/t ($136/st) in 2004 from$152/t ($138/st) in 2003.

Jan 1, 2005

By M. Sandin

According to the world bank1, the mining industry consumes up to 11 percent of global energy use. In comparison, 70 percent of mining projects from the six largest mining companies operate in water-stressed regions. To steer the direction of the process industries toward more sustainable practices, more than 40 governments have adopted a price on carbon. This measure includes additional taxes on the use of fossil fuels, trade programs, new standards for renewable energy, energy efficiency mandates, more stringent emissions regulation, carbon offsets, etc. This emphasis is also supported by investors shifting their priorities to reduce risk by focusing on long-term plans, including environmentally friendly operations. The metals and mining industry is at the core of the green energy mix and electrification of vehicles. This new trend creates an astronomical increase in demand for minerals. Under a 2-degree scenario, according to the latest analysis from the world bank, as new energy technologies continue to grow, it is expected that all minerals to double in demand, and the distribution of these materials will depend on their application. • Solar panels, will account for 87% of the aluminum demand, and more than 95% of silver • Wind turbines and geothermal plants will require 98% zinc and 64% titanium. • Solar and wind energy alone will demand more than 74% of the global supply of copper, and this is without considering wiring or other infrastructure to connect the grid • Battery storage accounts for 100% of the graphite and lithium demand. (Hund, 2020) • Other materials, such as nickel and steel, are also projected to more than double in demand as they are cross-technology minerals. These materials require a manufacturing process that is accountable for the emissions proper of the transformation process. It requires that these processes move from a hindsight mode focused on reporting to a forecasting mode based on run-time measurement of GHG emissions. This is a critical first step in companies realizing an economic return for doing the right thing for the environment and their communities.

Feb 1, 2023

By D. W. Olson

The estimated value of natural gemstones produced from U.S. deposits during 2004 was $12.9 million. This was a 3-percent increase from that of 2003. U.S. gemstone production included agates, amber, beryl, coral, garnet, jade, jasper, opal, pearl, quartz, sapphire, shell, topaz, tourmaline, turquoise and other gem materials. More than 60 varieties of gemstones have been produced commercially from U.S. mines. But commercial mining of gemstones has never been extensively undertaken in the United States. Most of the deposits have been relatively small compared with other mining operations. In the United States, much of the current gemstone mining is conducted by collectors, gem clubs and hobbyists rather than business organizations.

Jan 1, 2005

By S. Hardcastle

Tele-remote operation of production equipment from surface will change the design criteria for underground mines. And for ventilation, with machine operators on surface, conventional planning to dilute and remove pollutants can become redundant. Natural Resources Canada with industrial partners are investigating what will be the new environmental design criteria. Additional complications include new mining equipment being designed without standard services and mines’ desire to eliminate conventional auxiliary ventilation. Findings to date show the cooling of equipment’s hydraulic systems to be the most demanding element, especially in dead-ends and when stationary. Consequently, revised ventilation based heat control strategies for equipment are being developed for the automated mine of the future.

Jan 1, 2001

By Frank P. Frandina, Diane R. Hirsch, David P. Field, Colin R. Weeks

To accommodate growth in air service and to follow the Master Plan for long-term airport development, the Metropolitan Washington Airports Authority established thed2 Development Program at Washington Dulles International Airport. A sub-surface Automated People Mover (APM) System is under construction to replace the Mobile Lounges as the primary people mover system at Dulles. To minimize disruption to airport operations the majority of the APM System’s crossings of Taxi lanes will be undertaken using Tunnel Boring Machines (TBM) or the New Austrian Tunneling Method (NATM). This paper explores the planning and design of these shallow tunnel segments for future generation aircraft loads, within the constraints of minimal construction access under post 9/11 security requirements and the context of the overall airport expansion program.

Jan 1, 2005

By C. R. Stephan

The Mine Safety and Health Administration's (MSHA) Ventilation Division continues to evaluate proposed explosion-resistant seal designs. There are currently eleven specific designs for explosion-resistant seals that are suitable for construction in underground coal mines. Seal construction in operating mines must be equivalent to those constructed in the Experimental Mine during the explosion testing program. Accidental failures of seals have occurred due to explosion pressures below 138 Kpa (20 psi). The possibility exists that the failed seals were not properly constructed. Also, conditions in the vicinity of the seals may change. Water may accumulate against the seals, heave or sag may cause detrimental effects on the seals, and sloughage of the ribs may negate hitching. If seals are not properly installed or maintained, they could fail when subjected to explosion pressures. If seals fail for any reason, the possibility exists for explosion propagation throughout large areas of the mine. There could be catastrophic consequences to an event of this nature. This report will present a limited discussion on the construction of each of these seals and will address related issues.

Jan 1, 2001

By Ken Mathers, Tom Conley, Jim Rozek

The Melbourne City Link Tunnels have been constructed through a BOOT process, the largest undertaking in Australia to date. Tolling commenced on the 1.6 kilometer Domain tunnel in April 2000, and the 3.4 kilometer Burnley tunnel December 2000. The project was delivered by design construct contracting and under ISO 9000. There were a number of major challenges in completing the tunnels, including much higher than expected groundwater infiltration, hydrostatic pressures greater than 6 bar, and unique design and construction applications required to prepare the tunnels for service. This paper covers the end play and final delivery of the tunnels.

Jan 1, 2001

By J. B. Hedrick

In 2004, rare earths were not mined in the United States. The major supplier, Molycorp, continued to maintain a large stockpile of rare-earth concentrates and compounds. Major uses for these commodities were in automotive catalytic converters, petroleum fluid-cracking catalysts, permanent magnets, glass-polishing compounds, ceramics, metal-alloying additives, phosphors and rechargeable batteries. Consumption of refined rare-earth products decreased. The United States was a major importer and exporter of rare earths in 2004. Yttrium was not mined or refined in the United States in 2004. Imports from China, France and Japan accounted for most of the U.S. supply of yttrium compounds for refined yttrium products.

Jan 1, 2005