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By M. C. van Blerck

Since its introduction in 1956, the capital allowance has been increased and its scope widened. At present the allowance is 10% in respect of two categories of gold mine (post-1973 and other deep level mines) and 6% in respect of natural oil mines. The allowance is a significant incentive encouraging the development of new mines, to the benefit of both the fiscus and the South African economy as a whole. A strong case can be made for increasing the amount and the scope of the allowance. The Margo Report recommendation that the allowance should possibly be replaced with a system of direct grants is, in theory, neutral. However, practical difficulties exist with cash grants and there is concern with the implications elsewhere in the Margo Report that the capital allowance is excessive and that, as a consequence, such direct grants will represent an effective reduction in this incentive. I believe that the best course of action would be the retention (and enhancement) of the capital allowance and the expansion of its scope.

Jan 1, 1988

By Granville S. Borden

MANY complaints have been filed by mine prospectors, explorers and producers about inequities in mining taxation. They have insisted upon improvement, and in the past 35 years there has been some progress. Many of the best taxation provisions made to date are those contained in the Revenue Act of 1951. Mining economics presents special problems, a fact even recognized by many textbooks. Certain provisions have been made to take care of mining taxation rights, but these have been made by Congressional act and do not represent basic, constitutional, guarantees. Despite special provision, in the form of depletion allowances, there remain injustices. The industry faces the problem of gaining adequate income tax allowances for exploration and development expenditures, operating losses, and bonus and subsidy payments. Problems in mine taxation arose soon after the adoption of the 16th Amendment. This amendment gave Congress the power to impose income taxes. Supreme Court decisions against a number of mining companies held that Congress, under its power to tax income, could tax net operating revenue before depletion allowance was deducted. The court also ruled that the right to deduct depletion is a matter of Congressional permission. There is no statute provision permitting mining stockholders to recover their investment out of dividends while the mine is being operated. The Supreme Court did not recognize that part of mining proceeds are actually amortization of the cost of mineral rights. Both these omissions stem from failure to recognize that by its very nature mining consumes its mineral rights and therefore that a part of gross proceeds are not income but recovery of capital. Suppose a Congress unfriendly to mining interests repeals the provisions that allow deductions for depletion. Under such a situation assume that a corporation buys a mineral deposit for $300,000. They mine the deposit and earn an operating profit of $500,000. At the current rates they would pay a Federal Income tax of in excess of $250,000. This venture results in a loss of $50,000 as shown in the table below. For the example given the absence of depletion provisions in income tax law would turn ore into waste rock, because the word "ore" connotes commercially mineable rock. [ ] In retrospect the conclusion is clear: If the Supreme Court had recognized that a part of mining proceeds represent in reality sales proceeds of mineral rights, then profits derived from such sales would have been taxed at the favorable long-term capital rates, instead of being taxed at the high normal, surtax and excess profits rates. It is a question whether percentage depletion allowances offset this tax situation. History The history of depletion allowances has been one of general improvement. The original act did not include depletion, but an allowance at the rate of 5 pct of gross proceeds was provided in 1913. The Acts of 1916 and 1917 allowed depletion upon cost of property, and in 1918 the law was further changed to permit depletion upon cost, or market value as of date of discovery. In 1932 metal, coal and sulphur properties were permitted to elect depletion in percentages of gross income, limited to 50 pct of net income, in lieu of cost depletion. Shortly thereafter the rule was changed and percentage depletion is now allowable in any case where it is higher than cost depletion. Since 1942 percentage depletion allowances have been extended to cover many nonmetals, and in 1951 the rate for coal mines was increased from 5 to 10 pct of gross income. It is interesting to note that these allowances have been retained, and even

Jan 1, 1952

By Robert B. Parsons

"The last edition of Tax Notes expressed concern about two proposed tax changes in Finance Minister Paul Martin's 1995 budget that could have detrimental effects on Canada's mining industry. This month, Tax Notes expands on these concerns. This article is based on a paper that the author presented at ClM '95 in HalifaxIntroductionOn a global basis, there are more investment opportunities in the mining industry today than at any other time in history. Countries in Central and South America, Eastern Europe, the CIS, Central Asia, and Asia are competing aggressively to attract investment to all sectors of their domestic mining industries. Today, the demand for investment dollars exceeds the amount of dollars that are available for investment in mining. It is not surprising, then, that the established mineral producing nations are witnessing a decline in spending on exploration and development on their home turf, and an increase in spending in developing countries. In the context of a developed country such as Canada, there are two manifestations of the problem of declining investment: (I) Foreign investors are allocating more of their capital budgets to new opportunities in developing countries; and (2) Canadian juniors and seniors are spending proportionately more abroad. This shift in global spending patterns is the source of some concern for the future of Canada's mining industry, particularly because it is widely believed that the current rate of discovery of ore reserves in this country is too low to replenish depleting reserves.""Government bashing"" has always been a popular pastime in Canada. Invariably, this pastime has focussed, at !east in part, on taxation. In view of the intense competition that Canada faces on the global mining scene, it is important that the role of taxation in the decision-making process be kept in perspective. This paper seeks to put the role of taxation into perspective."

Jan 1, 1995

Mining is claimed to be unique among industries owing to its dependence on exploration for its existence, the need to operate in remote, inhospitable areas, the vast capital sums required for development, the need to pay royalties regardless of profitabil- ity, the wide swings in prices for many of its products, the finite life of each-mineral deposit, its susceptibility to criticism by environmentalists, its dependence on export markets and sensitivity to' cost and exchange rate fluctuations, the uncertainties inherent in most mining legislation, pressures to grant mineral rights to aboriginal communities and the burden of having to finance its own infrastructure. The special problems of the industry have been recognised in the income tax laws which, generally speaking, allow for the deduction of all capital expenditure before tax is payable. Notable exceptions to this rule are the absence of special deductions for mineral processing facilities and the absence of any deductions for a large part of the expenditure on ports and port towns. The scope and extent of infrastructure expenditure is discussed. The consequences of the burden imposed on the industry include tax inequity, higher capital and operating costs, "high grading" and

Jan 1, 1974

By Robert B. Parsons

"Exploration and development of mineral resources in developing countries by Canadian-based multinational mining companies is becoming increasingly common. One problem being encountered is that the objectives of the governments of developing countries can differ from those of developed countries. These objectives are not always consistent with maximizing returns from the projects, which can create conflicts between the mining company's responsibility to its shareholders and the desire to be a good corporate citizen. This article discusses how a mining tax regime can be designed to make the social goals of a government consistent with the economic goals of the company.IntroductionAt the recent International Seminar on Mining Taxation organized by CIM and the United Nations there was considerable discussion about the role of international mining companies operating in developing countries. Not surprisingly, given the diversity of backgrounds of individuals attending the Seminar, there were different opinions about what this role should be.Government PositionRepresentatives of governments pointed out the strong desires of their countries for technology, high-level technical training of their workforce, increased employment, and development of social infrastructure. They pointed out that, to a large extent, these objectives could be more efficiently met by mining companies operating in the country than by the governments themselves. For example, a multinational mining company (""MMC"") would have extensive knowledge of the various technologies available, and would have performed a detailed evaluation of the mineral resources before choosing the most cost-efficient technology for that project. They would, therefore be in an ideal position to assist the country in importing and developing such technology. Similarly, the company could provide opportunities for hands-on training, both at the technical and managerial levels, which would otherwise be unavailable to the government."

Jan 1, 1991

By William Winsor, Harold L. Snyder

"AbstractShould oil and gas be proven in commercial quantities on the Labrador Shelf, current technology is not adequate for production operations in this severe environment, which includes yearly invasion of pack ice and icebergs. The fishery of this section of the North Atlantic is a vital resource to which a major oil spill or blow-out would impose an intolerable burden, This means that production systems must be designed and built to be fail-safe.The experiences of mining in Bell Island and Cape Breton have shown that it is possible to operate beneath the ocean floor, and this technology may hold the key for safe, reliable and economic production, This paper attempts to define particular problems and outline possible solutions.IntroductionOUR DISCUSSION is subject to the assumption that large hydrocarbon reservoirs will be discovered in the sedimentary basin of the Labrador continental margin. The petroleum industry has not attempted to operate in a harsher area. The Labrador coastline is exposed to North Atlantic storms and icebergs year’round, Arctic pack ice occurs up to six months of each year. However, there is no doubt that, if sufficient hydrocarbon potential is outlined, development will proceed."

Jan 1, 1977

By C. David Mann

Metal prices continued to improve in 1964, resulting in the opening of new mines and re- activation of old ones. Larger and deeper shafts are being bored. At the AEC's Nevada Test Site, a 72-in. diam shaft is being bored to 3200 ft. In New Mexico a 1650-ft shaft was bored with a 48-in. bit, then reamed to 124 in. to 935 ft, and 102 in. to 1650 ft. Deviation was only 26 in. In California a shaft sinking machine has been developed which combines drilling and mucking equipment into one mobile, integral unit.

Jan 2, 1965

No review of underground mining should begin with anything but the new world safety record set at the Grace underground iron mine of Bethlehem Steel at Morgantown, Pa., on Friday, November 12. There had not been a disabling injury (an injury which keeps an employee away from his next scheduled shift) for 550 working days. In all, 2,660,080 man-hours had been worked by nearly 950 employees without a disabling injury. The record was wrested from Johns-Manville's Jeffrey mine at Asbestos, Que. At 3 p.m. Friday, December 3, miner Stanton E. Friend was completely buried under several feet of coarse rock, fortunately sustaining only cuts and multiple abrasions. But with his fall, the accident- free period came to an end at 2,778,600 man-hrs worked without a disabling injury-the new record!

Jan 2, 1966

By P. J. G. duToit

The continually growing shortage of skilled underground miners, the escalating costs of labor, supplies and equipment, and the indisputable example of "what can be done" by our friends in the space-travel field, seem to be catalysts that are accelerating improvements in underground mining technology. The search for an economic, automated continuous excavation method that would produce rock at the mining face in sizes suitable for automated transportation directly into the rod-, ball-, or autogenous grinding mills is continuing. New mining methods and techniques were devised and many improvements on old methods and techniques came forth at an increasing pace that reflected a widely spreading policy among mining men to shun the shackles of conservatism and to forge ahead and venture into newer ideas.

Jan 2, 1967

By J. B. Mudd

Introduction It is difficult to think of any activity on which mankind has been more dependent than mining, and certainly there is much evidence in almost every part of the world of old workings that clearly demonstrate that man from earliest times has dug and toiled to take from the earth precious stones, metals and materials that from time to time have been essential or of value to him. In step with social development and industrial and technological advances the tempo of mining activity, regulated only by the laws of supply and demand, has quickened and in this century has accelerated rapidly in keeping with its dramatic development. Indeed, the rate of change of events has been such that if it were to continue to accelerate as fast as it has over the past decade there is reason to wonder how the insatiable demands for metals and minerals are to be met in the years that lie ahead. Shallow mines containing high-grade ore deposits either have been or are being rapidly mined out and their place can only be taken in general by ore lying at greater depth, or by ore of low grade, situated for the most part in remote and in underdeveloped areas. The cost of exploration and development is rising at an alarming rate, with the result that the expenditure now required to bring a mine to production far exceeds anything previously contemplated. It is estimated that the total capital required to maintain existing operations and develop new ones during the next 5 years will be of the order of $50,000 million and of this, new capital to bring new mines to production will be of the order of $3,000 million. Today no single mining finance company can, from its own resources, find all the money for a major mining development, and as a consequence there has been a strong trend toward joint ventures and to the formation of multinational consortiums. International lending institutions already play an important part in financing many new mining projects and their participation provides the financial umbrella under which other lenders can invest with greater security. There is little doubt that to finance the costly ventures in the future, governments and international lending agencies, banks and finance

Jan 1, 1971

By G. de B. van Niekerk

This paper briefly outlines some mining technology that is used with success in Australia but is not yet fully utilized in South Africa. The following aspects are discussed: improved rotary-drill bit performance, use of trucks and load haul- dump units underground, long-hole raising, blasting techniques, and the use of butterfly roofbolt plates for support.

Jan 1, 1989

By Keith E. Meyers

Condition monitoring is a viable troubleshooting practice among many industries to extend equipment performance, minimize unplanned downtime, reduce maintenance and repair time and costs, and increase related aspects of plant safety. But obstacles abound for mining, mineral-processing and cement operations striving to implement the technologies. Harsh machine environments can muddy efforts. High vibration in machinery can interfere with wide-spread rollout. Staff expertise or skills may be lacking. And costs may be prohibitive. Fault detection has emerged as a practical and cost-effective solution to identify process and machinery faults before failure interrupts productivity or jeopardizes worker safety. Fault detection can be a stand-alone system or connected to plant automation.

Jan 1, 2005

The Mascot-Jefferson City zinc mining district in eastern Tennessee has been a major zinc producer for over 60 years. The district lies within the Tennessee division of the Appalachian Valley and is underlain by folded and faulted Paleozoic rocks. The local formations are composed of limestones and dolomites with occasional shales, and sand- stones, and thin and scattered chert nodules. The regional structure of the district is unique in that it is complicated by irregular, distorted, and broken anticlines, synclines, domes, and major and minor post-ore folding and faulting.

Jan 5, 1976

Australia is a highly significant hub in the global minerals business. This paper will present the results of global and national studies looking at the potential 20 to 30 year future evolution of the mining and metals industry.   Globally, the World Economic Forum launched a Mining and Metals Scenarios project in January 2009 to explore the question: 'How will the environment for the global mining and metals industry look in 2030?'. As part of a structured strategic foresight process, eight workshops were held across the world over the course of a year which brought together over 200 leaders from the private sector, government, academia and non-governmental organisations. The workshops were supplemented by personal interviews and guided by an international advisory board.   Critical uncertainties for the future of the industry were identified and compare extremely well with the outcomes of a national survey of AusIMM members identifying the key issues and drivers shaping the future of their operations. Global context was one of the most significant issues identified by The AusIMM membership, which is expanded in the World Economic Forum study in terms of: geopolitics; global governance; action on climate change; and economic outlook. More specifically, this global study developed three divergent yet plausible scenarios describing potential environments for the global metals and mining industry in 2030. These scenarios are compared with ground-breaking global foresight work coordinated by the Stockholm Environment Institute in the 1990s. The scenarios will help decision makers rehearse alternative futures, anticipate potential hazards and identify business opportunities - new solutions, new markets and new connections. The presentation will present these scenarios as a way of challenging thinking, testing established wisdom, and stimulating imagination about the business case for the mine of the future. As Marcel Proust put it, 'The real voyage of discovery consists not in seeking new landscapes but in having new eyes'. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Jun 1, 2010

By Tania Schmid, Marco Portal Valdivia, Sandra Nowosad

Today’s mining industry faces rapid transformation driven by automation, climate responsibility, and ESG demands, requiring more than technical expertise. Future mining engineers must blend engineering excellence with key human skills such as communication, leadership, resilience, empathy, adaptation to change, curiosity and lifelong learning. Based on two recent surveys, one to senior leaders with over ten years of experience in the mining industry and a second, focused on understanding the perceptions of young professionals, this paper explores which skills become core competencies by 2030 for navigating complexity, leading responsibly, and enabling sustainable transformation. Furthermore, it also examines how educational institutions can adopt strategies to foster the development of these critical skills, preparing future mining talent for evolving challenges.

Feb 22, 2026

By Douglas A. Anderson

Mine the Internet? You bet. Precious information resources are there to be found by those willing to explore. Of course, the stratigraphy and the exploration tools must be learned. This article is is designed to help learn those tools and how to find the information that can help the reader. However, beware the Internet. It can be addicting. On the other hand, information can be found that you never suspected. And users can make contact with people who might otherwise never have crossed their paths.

Jan 1, 1996

By Duluth Engineers' Club, Engineers' Club of Northern Minnesota

"Prospecting and Exploration. Since the Lake Superior ores occur in pockets or distinct bodies and vary much as to character and location, the actual mining of the ores is preceded by much work of an exploratory character. This work includes prospecting and exploration.Prospecting is the term generally applied to the quest for surface indications of ore, or the conditions which would warrant the expectation of finding ore in the vicinity. It includes such 'operations as geological examination, dip needle work, shallow test-pitting, and trenching. The ore bodies of the Mesabi Range are non-magnetic, and dip needle prospecting is therefore valueless. On the Cuyuna range, however, magnetic attraction as evidenced by the dip needle has been extensively employed as a guide to the location of ore deposits; in other localities it has found limited application.Drill Exploration. After the presence of an ore deposit is known or suspected, resort is generally had to exploration by means of diamond or churn drills. On the old ranges geological conditions generally make this manner of ascertaining the exact limits of an ore deposit impracticable; so, if two or three adjacent drill holes develop considerable depths of ore, the sinking of a shaft for underground exploration, development and mining is generally considered warranted. On the Mesabi Range, however, the flat-lying and comparatively shallow characteristics of the ore formation warrant much more extensive drill explorations. On this range, then, an ore body 'is almost invariably followed· out with the drills, and its limits are determined to the point where the complete plan of development can be worked out in advance of actual mining operations"

Jan 1, 1920

Underlain by and intruded into the sedimentary rocks of the Transvaal Supergroup the Bushveld Complex is the largest known layered intrusion in the world and contains one of the richest ore deposits on earth. It has been the world's major source of Platinum Group Metals (PGM) since the mid-1900s with Chromite and PGMs the two most economically important components of the Bushveld Complex. The lower group (LG), within the critical zone, consists of seven chromitite layers and it is within this sequence of chromitite layers, the most important target of the lower chromitite group is found, ie the LG6 chromitite unit. The LG6 chromitite unit consists of a chromitite duplex composed of the lower LG6 chromitite layer (Steelport seam), averaging 1 m thick, overlain by a 0.66 m waste parting and a thin 0.34 m thick LG6a chromitite layer (leader layer).Two mining methods are commonly applied in the Bushveld Complex to extract the LG6 chromitite layer package. One method consists of footwall development utilising rail bound equipment to gain access to the orebody and then extracts only the LG6 chromitite layer by means of hand held rock drills and scraper winches. The second method is the use of mechanised equipment to access the orebody on the plane of the ore utilising bord and pillar mining method, which extracts the full mineral resource, ie the LG6 and LG6a layers. Conventional narrow vein stoping is often selected due to the large conventional mining skills base found in South Africa, the perceived cost and dilution implications of utilising mechanised equipment, and the difficulties of using mechanised equipment at dips above 12¦. The driving factor for mechanised mining is the perceived ability to access the orebody quickly and inexpensively, and extract the entire mineral resource package (LG6 and LG6a) while limiting capital expenditure and improving safety.This paper investigates these two commonly applied approaches, highlighting the benefits and problems associated with the two approaches. Comparisons will be made of the two mining methods and recommendations given for the mining engineer to consider before selecting the appropriate mine design.

Dec 6, 2010

As land resources decrease, commodity prices increase, and technology evolves, deep sea mining is becoming a viable alternative to meet the increasing demand for minerals. Successful deep sea mining operations are built on sound identification of the resource, proper selection of equipment, a thoughtful production plan, and good project management. These four key activities can be further optimized by analyzing how the spatial variability and uncertainty of the ore body properties impact the final mining operation. To address this problem, IHC Merwede is in the process of developing a risk quantification framework in the context of deep sea mining, which makes use of state of the art geostatistical simulation methods and transfer functions to quantify geological uncertainty and translate it into decision or project risk. The paper introduces the Local Average Subdivision method (LAS) for generating simulated models of the deposit and presents a new extension to incorporate point measurements of geotechnical or ore grade properties. Due to its computational efficiency, the presented method is suitable for simulating largely extended sea floor deposits. The second part of the paper illustrates, through example case studies, the significant benefits of a risk based approach which translates geological uncertainty into financial or operational performance indicators. In particular, the focus is on assessing financial project risk and on the design optimization of the deep sea excavation equipment by analyzing cutting forces, specific energies, and power requirements.

Aug 1, 2013

By Véronique Falmagne

The mining sequence at Noranda?s Bell-Allard mine calls for two mining fronts retreating toward a central pillar known as the Retreat Zone between pyramids A and C. It is clear from numerical modeling and rock mass characterization that the induced stress level in the pillar will exceed the rock mass capacity. A mining plan was developed including the re-dimensioniong of stopes in the Retreat Zone, additional ground support and instrumentation in order to ensure the safety of the workforce and to maximize ore recovery while minimizing production delays. The mining strategy consists in allowing the rock mass to fracture and fail progressively while maintaining control of the existing openings with the appropriate support. A systematic analysis of rockbursting and caving hazards was conducted for all accesses and stopes in order to plan ground support and instrumentation needs.

May 1, 2003