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By Paul M. Jr. Musgrove, Donald C. Moore

Conventional Smelting Practice Conventional copper smelting practice varies from smelter to smel¬ter, but generally consists of some or all of the following unit processes: roasting, smelting, converting, and fire refining. Roasting. Copper sulfide concentrates can be smelted directly or after an initial roasting step. Roasting is used in some smelters because roasting prior to smelting increases smelting capacity, less energy is required to melt hot roaster calcines than wet sulfide concen¬trates, roaster off gases are high in Sot concentration, 5-15% SO2, and some volatile impurities are removed from the concentrate prior to smelting. However, many smelters do not use roasters, because the problems associated with handling hot dry calcines outweigh the advantages mentioned. Concentrate roasting is performed in multiple hearth or fluid bed roasters. If the moisture is low, roasting can be performed autogenously, usually at 500-600°C. High roasting temperatures are avoided because excess oxidation of the iron compounds may lead to magnetite formation. Magnetite is detrimental to reverb operation because mag¬netite can combine with refractory minerals to form a highly viscous slag. This slag prohibits efficient matte-slag separation and leads to excessive copper losses. Also, magnetite can settle through the matte layer, deposit on the furnace bottom, and consequently reduce furnace capacity. Roasting is carried out only on sulfide concentrates prior to smelt¬ing in reverb or electric furnaces. For smelting processes, such as the flash and continuous that rely on the exothermic heat of oxidation of the sulfur minerals, roasting is not practiced. Reverberatory Smelting. The predominate copper smelting fur¬nace for the past 50 years has been the reverb. These furnaces are typically 100-120 ft long, 30-35 ft wide, and 12-15 ft high. A typical furnace layout is shown in Fig. 2. Refractory brick linings cover all internal surfaces of the furnace. Originally the flame was directed to reverberate or reflect off the furnace ceiling and melt the feed material. Current practice is to direct the flame down the furnace length to melt the concentrate. A method of charging the concentrates or calcines, generally along the side walls to minimize refractory erosion, is incorporated in the furnace design. The copper concentrates, calcines, and fluxes charged into the reverb undergo a series of complicated reactions as the temperature of the mixture increases. The reaction of the iron and copper sulfides with the oxygen in the furnace produces a molten Cu25-FeS mixture called matte. Copper smelting metallurgy is based on the fact that sulfur has a greater affinity for copper than for iron and most other common metals. Therefore, in a system containing copper, the copper will preferentially remain as a sulfide compound until all of the other metals have been oxidized. The oxidized metals combine with silica to form a silicate slag that floats on the matte and is removed from the system. Reverberatory furnace smelting chemistry can be approximated by the following chemical equations: FeS2 + O2 - FeS+ SO2 (1) The formation of FeS ensures that any copper present other than as sulfides will be reduced by the relationship: CuO2 + 2FeS + O2 - CuS + 2FeO+SO2 (2) or 2Cu +FeS - Cu2S + Fe (3) As the molten charge travels down the furnace, continued oxida¬tion of the iron minerals and sulfurization of the copper minerals occurs. When all of the copper has been converted to sulfides, the iron sulfides can then be further oxidized as: FeS + (3)2 O2 FeO + SiO2 (4) The FeO reacts with the silica added as flux in the furnace charge. A simplified equation is: FeO + SiO2 -FeO SiO2 (5) The iron silicate slag formed is skimmed from the surface at the end opposite the burners. The copper content of reverb slag is usually less than 0.6% Cu and is discarded. Matte is removed along the side wall and is taken to the converter for oxidation of the remaining sulfur and iron. The main objectives in reverberatory smelting are to produce a molten Cu2S-FeS matte containing 30-60% Cu and a throwaway slag. Production of matte permits complete conversion of all copper minerals into copper sulfides, which can migrate because of specific gravity differences, through the lighter slag layer. Also, the molten matte droplets collect the noble metals, gold and silver, as the matte settles in the furnace. The large settling area of the furnace provides enough separation time to produce a low grade slag, which can be discarded without further processing. High heat losses are associated with reverberatory smelting be¬cause of the large volume of gases sweeping through the furnace. Therefore, an outside source of heat is required to keep the smelting reaction going. Natural gas, fuel oil, or pulverized coal are used as this heat source.

Jan 1, 1985

By M. Lahtinen, H. Takala, B. Saxén

Oxidic zinc fume dusts are formed in electric arc furnace (EAF), Waelz furnace operations, and also in the Top Submerged Lance (TSL) furnace of Outotec Ausmelt. These dusts are normally considered as secondary raw materials for zinc metal production, as they are mainly originated from steel scrap recycling or zinc plant residue processing. The latest development in zinc fuming is direct smelting of zinc concentrates in the Ausmelt TSL furnace and hydrometallurgical treatment of produced fume dust. This technology is for primary zinc production like roasting and concentrate direct leaching, as concentrates are directly treated. The various oxidic zinc raw materials differ in composition and content of impurities. Thus, they require different hydrometallurgical processes to produce pure zinc metal. In addition to zinc these dusts typically contain also lead, silver and indium, which can be recovered and can increase recovered metal value significantly. From the impurity point of view the most relevant elements in the fume dusts are iron, arsenic, fluoride, chloride and cadmium. This paper describes hydrometallurgical processes to treat Ausmelt TSL fume dusts to extract valuable metals at high recovery and also to control and separate various impurities efficiently.

Jan 1, 2014

By E. B. Spice

"IntroductionExperience at Eldorado has been gained with a variety of mill feeds. That is, the actual mode of occurrence of the pitchblende varies to such an extent that gravity concentration has at times been decidedly unattractive and at others highly successful. Because of this, the type of ore necessary for economic recovery of pitchblende have become well known. Also, those types which do not lend themselves to gravity concentration have become familiar. In general, it may be said that when the pitchblende occurs free, to a large extent, from sulphides or arsenides of high specific gravity, and when the bulk of the pitchblende is localized rather than disseminated, excellent recoveries, high ratios of concentration, and good grades of concentrates , will result from proper gravity concentration. On the other hand, if the ore contains pitchblende intimately or otherwise mixed with large quantities of arsenides or sulphides, or if the pitchblende is finely disseminated, gravity concentration alone will yield high recoveries only at the expense of very low-grade concentrates and low ratios of concentration.According to Taggart, the ease with which gravity separation may be effected is determined by the value of the following ratio: []It is stated that when the ratio is above 1.75, gravity separation can be expected to be easy. Thus with pure U308 (S.G. over 9) and gangue consisting chiefly of siliceous material, the process can he expected to be entirely successful even when carried on at very fine sizes. Unfortunately, the term pitchblende covers a great diversity of material. Although some of the mineral occurs pure enough to have a specific gravity of about 7, the average is much lower than this and is probably well under 5. Some of the pitchblende particles have a specific gravity so low that gravity concentration fails completely. It may also be said that no degree of grinding will produce free pitchblende of sufficient density from such particles. This, then, represents the most important limitation to the application of gravity separation to pitchblende ores."

Jan 1, 1950

By L. C. Snider

NO important discoveries of petroleum during 1932 are reported from Canada. New Brunswick, which has a small production from one field, was inactive, and the production showed a decline from 6600 bbl. in 1931 to about 6300 bbl. for the year 1932. The old fields in Ontario increased from 123,000 to about 131,000 bbl. Alberta showed a decline of more than one-third, from 1,413,631 bbl. in 1931 to about 913,000 bbl. in 1932. This decline was due principally to the restrictions placed on the flow of gas wells in the Turner Valley field, from which the crude naphtha is obtained that accounted for more than 93 per cent of the production of Alberta and for more than 80 per cent of the production of all Canada in 1932. The starting of new wells to the limestone that produces the naphtha-bearing gas was prohibited late in 1931, and only wells started before that time were finished during 1932. One well was drilled in the Turner Valley field to a depth of 7555 ft., establishing a depth record for Canada. It passed out of the Madison limestone at 5560 ft., and encountered showings of oil in the underlying formations, probably of Devonian age. Commercial production had not been established by the end of the year. Commercial oil wells were brought in in two areas in Ontario which had previously been considered as productive of gas only— in the Dawn gas field, Lambton County, and in Raleigh Township, Kent County. The discovery wells had initial productions of about 50 bbl. per day, but no production of major importance is indicated. In Alberta, outside the Turner Valley district, two wildcats were drilled northwest. of Lethbridge in the Keho Lake vicinity. Both failed to make commercial producers in the Madison limestone, but one was testing upper sands at the close of the year. Good showings of oil are reported. A very small production was found in the Madison limestone in a wildcat well on the Twin River structure southeast of Lethbridge and another well has been started near by on what is considered on geophysical evidence to be a better location structurally. About 15 locations were made on the Canadian side of the border north of the Cut Bank development in Montana.

Jan 1, 1933

By Barbara A. Sciever, John H. Sr Schue

Riverboat gambling has caused quite a sensation among people since its talk of coming to Illinois. The year 1992 marked the start of an era for people that had a penchant for gambling, it was the year that riverboat gambling was legalized in the State of Illinois.

Jan 1, 1995

By J. J. Zaluski

The Surface Mining control and Reclamation Act (public Law 95-87) (here-inafter the "Act" or "SMCRA") passed by congress in August of 1977 represents a comprehensive federal scheme for controlling surface coal mining and the surface effects of underground mining through permitting requirements, performance guidelines, and reclamation planning. While the provisions of the Act have been the subject of numerous legal challenges and court battles over the years, it is difficult to identify a more controversial program within the Act than the provisions for designating lands as unsuitable for surface coal mining operations. The lands unsuitable designation process provides for the acceptance and review of petitions submitted by citizens or organizations seeking to have specified land areas designated unsuitable for all or certain types of surface coal mining activities. In filing these petitions, the interested parties or petitioners are required to make allegations about potential adverse impacts on people or the environment and submit evidence supporting their allegations.

Jan 1, 1992

By Lawrence Devon Smith

"The Management and Economics Society has undertaken a survey of industry practice in the evaluation of mineral projects. The survey addresses a number of issues relating to evaluation techniques, discounted cash flow methodology, and risk. Completed during the spring and summer of2005, the results provide a record of opinion at an active and vital time in our industry.The 2005 survey questionnaire was distributed by e-mail to groups and organizations around the world. There were 22 respondents out of several hundred questionnaires distributed (we gather this small proportion of respondents is typical for such surveys). The responses, although a small number, show a consistency that suggests that the survey has captured the views of the industry. The results of the survey are summarized below in series of tables and graphs.The reader is cautioned that the results are a snapshot of industry practice at a point in time as represented by a small sampling of the industry's practitioners. These results should be viewed as indicative values."

Jan 1, 2003

By Wang Chen

COREX process is briefly introduced. A static model combining a set of mass and heat balance equations has been developed. Taking the specified inputs from the graphical user interfaces, the model is capable of calculating the consumption of raw materials and fluxes, the volume and composition of the slag and the volume and composition of the generator gas. The model enables the examination of the changes of materials and energy flows induced by the variations of operational parameters and raw materials chemical analysis. The model allows a detailed process analysis and adjustment of the plant operation and can thus be used to improve plant operation.

Jan 1, 2008

By R Benton

Since commencement of underground production in March 2006 the Kencana K1 orebody has delivered over 0.9 Mt of ore containing 1.18 Moz Au until April 2009. The Kencana deposits are part of the Gosowong goldfield located on the island of Halmahera in eastern Indonesia. The district has produced over 2.3 Moz since mining commenced in 1999 with the first two deposits extracted by open pit methods. The K1 deposit is technically challenging being a vein style deposit with poor to very poor ground conditions and a relatively low overall dip of around 45 degrees to mine grid east. It is mined under geological control by underhand cut and fill methods utilising cemented paste backfill aiming for 100 per cent extraction. With these conditions the operation was mine limited in the initial two years of production resulting in low stockpile levels for mill feed blending and hand-to-mouth mine to mill production. Mill feed rates have increased from 30 t/h to 55 t/h over this period following business improvement projects while mine production has escalated to match this increase as deeper levels of the deposit are accessed. The operation has now become mill limited. Monthly mill gold production from Kencana has ranged up to 50 000 oz with head grades ranging between 8 g/t and 122 g/t Au on a daily basis. As individual grade control assays can extend into the per cent Au range there are challenges in sampling, modelling, mining, blending and milling the Kencana orebody. At the time of commencement of ore driving in K1 the national geology team had little prior experience in underground mining and systems were in early development. The variances in feed grade and tonnages have been reduced with time as the operation evolves and business improvement initiatives are undertaken to smooth peaks and troughs in ore supply. Two such initiatives in the geology department have added over US$20 M of additional revenue per annum.

Jan 1, 2009

There exist many formulae for designing coal pillars. However, when applied to a given set of mining parameters, they lead to different pillar sizes and factors of safety. From the subsidence point of view, the pillars designed as protection pillars not only have to be stable, but also have to limit subsidence over them to a level acceptable to the structure being protected. The subsidence over a pillar of given width to height ratio depends upon the mining depth. A pillar may be stable, but the subsidence over it may be quite large and unacceptable for the structure. In many cases even though pillars may yield, they support the undermined strata and reduce surface subsidence. In addition, the yielding pillars eliminate peaks and troughs in the surface subsidence profile and reduce ground strains. In a given situation, whether a pillar yields or not depends primarily upon its width in relation to mining depth.

Jan 1, 1992

By Liu Cheng-si

The number of control plans for placing control devices in a ventilation network is surprisingly large, but the research result indicates that not all control plans are feasible. The feasibility of a ventilation network control plan depends on two factors. One is the influence of the network structure. The structure must contain one independent variable-flow airway in a non-controlled loop. Otherwise, the control plan is unfeasible. The other is the combination of the air resistance, quantity, pressure and other parameters. Under some conditions, the selected values of these parameters may result in an unfeasible plan. As to the influence of the network structure, when the network structure is simple, the feasibility of a control plan can be judged directly. However, for the influence of the parameters, the feasibility of a control plan must be examined through calculation. The control position has been extended into the natural-splitting subnetwork from the conventional constant-flow subnetwork. This technique is theoretically significant. The extension of control positions results in a great increment in control plans and variation in parameters. At present, the calculation methods of the ventilation network control plans are all available. They are quite useful in selecting desirable plans. However, among the plans found, some are impractical or even unfeasible. If the unfeasible ones can be eliminated at first, much time can be saved in design and calculation. This also facilitates management and decision making.

Jan 1, 1991

By L. O. Thomas

BROADLY, Yukon is divisible into three physiographic provinces which are extensions of the similar divisions in British Columbia that are there known as the Coastal system, the Interior system, and the Rocky Mountain system. South of Yukon to about the 50th parallel of latitude, the Coastal system consists solely of the Coast range, which, in Yukon, passes behind the St. Elias range and for the remainder of its course constitutes the most easterly portion of the Coastal system. The extension, in Yukon, of the Interior system of plateaus and mountains of British Columbia is commonly referred to as the Yukon plateau, and the extension of the Rocky Mountain system as the Mackenzie Mountains system. The Coast-Range province is largely made up of granitic intrusives; the Mackenzie Mountains province of folded sediments; and the intervening Yukon Plateau province of ancient metamorphic rocks, folded sedimentary rocks, volcanics, and intrusives. Almost the entire area dealt with in this article was subjected to glaciation and, in those parts where its full effect was experienced, the valleys were invaded by vast masses of ice which transported and scattered the stream gravels, with their gold content, so that, even where gold still remains in the old stream channels, it has become so buried under boulder clay and other glacial accumulations that it is, in most places, difficult to find, and, when found, may prove very expensive to mine. Most of the present rivers have done little more than cut new channels in the glacial debris, touching only here and there upon the subjacent rocky floor. The territory in Yukon adjacent to the section of the Alaska highway between Watson and Teslin lakes is for the most part unknown both topographically and geologically. From Teslin to Kluane, the highway travels a fairly well-mapped part of Yukon, but beyond that point, until White river is reached, the geology of the adjacent country has, largely, yet to be determined, particularly on the north side of the highway.

Jan 1, 1943

By V. G. Cawagdan, E. M. Sacris

The performance of the grinding circuit, from the initial stages of operation to the present, is discussed. The mill efficiency as measured by the Bond (Bond and Maxson, 1943) grindability data and the operating work index is presented. The objective was to produce a sand cyclone overflow containing not more than 6% 210 µm (+ 65 mesh). This has never been attained, even at low milling rates. Significant improvements in throughput were achieved by instituting equipment changes and process modifications within the grinding circuit. Grind improvements were achieved with enlargement of cyclone spigots, grinding at reduced densities, and decreasing the opening of the ball mill discharge. Additional grinding capacity was realized by converting the concentrate regrinding mill into a secondary ball mill. The previous 20% 210 µm (+ 65 mesh) grind improved to under 15% 210 µm (+ 65 mesh). The latest approach to solving the coarse grind problem is also discussed.

Jan 1, 1985

All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

By A. K. Sinha, K. M. Sinha

Several studies concluded by various agencies (Coal Outlook, 1982; Malhotra, 1977) indicate that both the national and international markets for utility coal, which have been growing in recent years due to the uncertainties in petroleum supplies, will continue to grow in the foreseeable future. The areas where the Gemand for utility coal is projected to increase sub- stantially lie close to the midwestern coal fields, in the southeastern US, and in western Europe. Illinois has all the elements necessary to become an important exporter of thermal coal (Library of Con- gress, 1981) provided the coal is desulfurized to meet the environmental restrictions. Because of its high energy content, Illinois Basin coal, if desulfurized, has great potential for competing in the utility markets both nationally and internationally. Sulfur in coal occurs in organic and inorganic forms. The inorganic sulfur in Illinois coal is almost exclusively pyrite. The pyrite can be liberated by grinding and removed from the coal by such techniques as froth flotation. The Illinois Basin coals reportedly contain (Gluskoter and Simon, 1968) an average of 3.57% sulfur. Out of this, 2.06% is pyritic, 0.08% is sulfate, and 1.46% is organic sulfur.

Jan 1, 1986

By J. Evans

Including: Tailings thickeners, CCD?s, paste thickeners, HI-rate thickeners, lamella thickeners, high compression thickeners, clarifiers etc. Flocculant dosing control for mining thickeners and clarifiers is influenced by a number of process factors. 1. Flow rate into the thickener or clarifier a) As the flow rate increases into the thickener or clarifier ?retention time? decreases which causes a greater affect hydraulically on the settling solids. So as the flow rate increases it will generally mean an increase in flocculant dosing rate. b) As the flow rate decreases into the thickener or clarifier the retention time increases which reduces the hydraulic affect on settling, improving settling rates. This will generally mean that as the flow rate decreases, we will decrease the flocculant dose rate.

Jan 1, 2011

By Samuel Canchaya Moya

Si bien en las últimas décadas se aplicó el estudio de la geoestadística en la minería, el uso de la técnica no ha logrado una mayor difusión. En ese sentido, el presente texto señala la aplicación de los paquetes de software en la minería a través de los módulos de geoestadística. En este punto, la optimización del muestreo, se convierte en un problema tanto en la etapa de exploración como de producción. Por ello, es necesario conocer y comprender los conceptos y métodos geoestadísticos que se apliquen a la medida de muestreo de la veta, ver distancia y ubicación de taladros, costos de campaña de exploración, entre otras medidas, etc.

Jul 31, 2003

By Robert Hivick, Frank Sames

The control of environmental effects, especially blast vibration and airblast, has become a dominating planning criterion for most surface blasting operations. Compliance with existing regulations is generally achieved through constraints in the blast design, or monitoring programs. Commonly, blast vibration and airblast signals are rated and compared by their maximum amplitude and the associated principal frequency. However, this data reduction limits the interpretation of the influence of varying blast design parameters on the vibration and airblast.

Jan 1, 1999

By M. Leroux, S. R. Rao, J. Kim, J. A. Finch

"Continuous in-plant testing of collectorless Cu/Pb bulk flotation on Lyon Lake ore at Matlabi Mines Ltd. Was conducted using a portable circuit based on 5 L mini flotation cells. It is concluded that collectorless Cu/Pb flotation is a reliable phenomenon for this ore over the usual range of plant operating conditions.IntroductionFlotation of some sulphide minerals without the use of conventional collectors (e.g. xanthates) is now widely recognized. The requirement appears to be some degree of oxidation, although the nature of the surface product formed is still uncertain (Luttrell and Yoon, 1984; Buckley and Walker, 1988). The phenomenon has been termed ""collectorless"" or ""self-induced"" flotation. One of the minerals most responsive to coUectorless flotation is chalcopyrite; in contrast pyrite and sphalerite show little response and galena usually shows intermediate response (Hayes et al., 1987; Shannon and Trahar, 1986).Most of the work on collector1ess l1otation has involved single mineral or batch flotation on ore samples. There are only occasional references to collector1ess l1otation under plant conditions (Sandstrom and Jonsson, 1988; Vargas, 1990; Boyce et al., 1970). Creating and maintaining the appropriate oxidation conditions and differences in water quality are among the reasons why the phenomenon may not transfer readily to the plant (Grano et al., 1990). Periodically from the spring of 1989, Mattabi Mines Ltd. ran full-scale tests of collector1ess bulk CulPb flotation while treating Lyon Lake ore*: the observations confirmed the laboratory finding that chalcopyrite and galena floated without collector (Leroux et al., 1989).To explore this finding continuous in-plant testing using mini flotation cells was conducted which is the subject of this paper. The main objective was to determine if collectorless flotation was a reliable phenomenon over the expected range of redox conditions in the feed pulp to bulk CulPb roughing. As background, the previous work (Leroux et al., 1989; Martin, 1988) is briefly reviewed."

Jan 1, 1994

By Donald S. Colby

This Bureau of Mines report is essentially a handbook, or manual, for making the type of mineral resource valuation commonly required for such public policy problems as mineral leasing. The principle of resource valuation through the capitalization of cash flow is well established. A mathematical procedure, based on a simplified accounting system, is detailed for calculating cash flow from revenue, plant costs, and operating expense. Variations of procedure cover cost depletion, percentage depletion, and depletion limited to 50 percent of net income. The influence of the depletion provisions of the tax regulations on the value of a resource to an owner and to an operator is analyzed. The relationship of royalty, bonus payments, and sales price to resource value is also described, and methods for approximating resource values using these payments as input data are developed.

Jan 1, 1969