Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
31 Cards in this Set
- Front
- Back
|
Reserves
|
resources that are discovered and proven to be economic with grade and tonnage sufficient to justify mining
|
|
|
Marginal Reserves
|
lower-grade resources could become economic if (mineral processing improves or price goes up
|
|
|
Inferred Reserves -
|
resources that may be present but haven’t been evaluated for
grade and tonnage (usually by drilling) |
|
|
Income tax
|
- tax on profits made from selling mineral products
- Collected by Federal and State gov’t |
|
|
Ad valorem tax
|
- “in proportion to value” - property tax
- based on the assessed value of the mine buildings, infrastructure, equipment, and the proven reserves - collected by States and Counties regardless of state of operation - steady revenues - regressive because it taxes increased assets (new reserves) |
|
|
Severance tax (or royalty)
|
production tax on each ton, pound, ounce, etc.
of mined commodity - collected by States and Counties - variable tax, based on production VOLUME |
|
|
why does Alaska rely on oil severance taxes?
|
because of high quantity of oil and low population
|
|
|
Clean Air Act (1970/1990
|
caps SO2 emissions from coal fired plant
|
|
|
power companies blend sulfer from west and east hemisphere.
east is high in what? west is high in what? |
east is high in sulfer
west is low in sulfer, high in carbon |
|
|
gross income (revenue) - depletion allowance =
|
taxable income
|
|
|
depletion allowance
|
help companies recover some of their original capital investment
|
|
|
how much does Transporting raw and finished mineral products adds to the final cost?
|
25-35%
|
|
|
Slurry pipelines
|
mineral product is mixed with water to form a slurry/mud
- allows for rapid (low-cost) transport of minerals |
|
|
Global Distribution of metallic mineral resources: Five major industrial nations possess a majority of many
of the world's known metallic mineral resources: |
United States
Canada South Africa Australia Former Soviet Republics |
|
|
Competitive commodity market
|
large number of small suppliers; each supplier has little control on
pricin |
|
|
oligopoly commodity market
|
: small number of large suppliers; each has a moderate influence on
pricing ie OPEC |
|
|
T/F Scarcest metals w/ the lowest-grade ores have the highest price
|
True
|
|
|
Four factors influence long-term prices:
|
) growth in metal demand
2) improvements in mining and processing technology 3) discovery of new deposits 4) depletion of high-grade ores |
|
|
metal prices - aluminum
|
abundant ores, falling prices with growing demand, new processes, and deposits. rising energycost
|
|
|
metal prices - pb lead
|
TOXIC. slow demand
|
|
|
Tin Sn metal pricing
|
slowly increasing
demand No processing advances Declining ore grades Little exploration = rising prices |
|
|
Industrial minerals prices
|
generally low unit-value commodities
have high transportation costs local markets = poorly defined global price trends |
|
|
T/F Mineral supplies change with price
|
false, don't change with price. minerals that we have are it.
Rapid demand increases don’t rapidly increase supply mineral prices often fluctuate wildlMeans that mineral prices are not perfectly competitive |
|
|
Supply:
|
- long-term production trends
- short-term effects - stockpiling, trade, and recycling |
|
|
Production:
|
v- changes in mineral reserves
- mining and processing technology - financial, political and economic policies in producer countries |
|
|
Demand predicted by
|
the ratio of resource consumption to gross domestic product (GDP)
|
|
|
Spot Contract:
|
cash for immediate delivery and payment
|
|
|
Futures Contract:
|
pricing for delivery and
payment after three months bet on where prices are heading |
|
|
marginal reserves are resources that could become economic if?
|
mineral processing improves and prices go up
|
|
|
T/F the ad valorem tax is collected by federal and state gov for profits made from selling mineral products
|
F, it's a property tax
|
|
|
minnesota and mmichigan are known for their abundant ___ ore?
|
iron
|
