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Show November 24, 1969 OIL & MINING JOURNAL Pane 2 SlMjiflng) Published weekly in Salt Lake City, Utah by Utah Scene Publishing Co., 4386 W. 3780 South, Granger, Utah 84120. Mailing address: P.O. Box 19243, Salt Lake City, Utah 841 19. Serving the mining and oil industries of the Rocky Mountain Region. t Articles and information contained herein are true and factual to knowledge of the publisher. Information and opinions published are the sole responsibility of the publisher and do not reflect the attitudes or opinions of the merchants, brokers, corporations and the-bes- service firms who advertise herein or otherwise sponsor this publication. 25 Cents a copy Subscriptions $10 per year Advertising rates: Display Advertising Classified Advertising Phone: $2 col. inch ....$2 for 20 words 298-240- or 3 Editor & Publisher. ; ! 298-370- OUT IN THE MIDDLE OF NOWHERE but this new oil refinery south of Kanab, Utah is providing ,new impetus to the area's economic growth. Oil is trucked in from Escalante oil fields to the refinery just over the Arizona state line, converted to refined products ranging from asphalt to high octane gasoline. Refinery processes 900 to 1,000 barrels of crude a day. 3 Chuck Hayward Enid J. Hayward Hal Funk Assistant to Publisher Director of Advertising. ' EDITORIAL EDITOR S NOTE: The following testimony was given by Fred IP. Peel, chairman, American Mining Congress tax committee, and partner in a Washington law firm, before the House Interior Committee in support of S. 719, a bill to establish a National Mining and Minerals Policy. i Large-scal- e mining operations, with their attendant financing problems, cannot be avoided if we are to meet the minerals demand. The richer, more easily mined veins of ore have been mined out. Now we must look to the poorer, thinner grades, and the only hope for low-cooperation under these conditions is by large-scal- e mining with a huge capital investment per employe. The most recent survey by Fortune Magazine of the 500 largest corporations showed that the mining companies in that group had capital assets of $134,000 per employe, by far the largest investment per employe for any category of industry. To attract adequate financing it is important that our governments minerals and consistently applied. policy be stable, Above all, the actions of the government must not impede the task of financing the needed expansion. P Hudu production up, except for gold ore Production figures for the first nine months of 1969 for Hecla Mining Co. of Wallace, Idaho, showed an increase in everything except gold over the comparable period of 1968, the firms third quarter report shows. The companys silver output as the additional of Sept. 30 climbed to 5,013,296 ounces from 3,230,013 ounces during the same period last year, lead was up to 20,891 tons over 10,075 tons, zinc increased slightly to 6,967 tons from 6,906 tons and copper to 1,478 tons from 1,209 tons. per cent tax proposed by the Finance Committee on tax preference incomes would be applied to percentage depletion deductions, producing substantially the same effect as a 10 per cent across the board cut in depletion deductions. It would be ironic if the Congress should, in the same year, enact S. 719 and reduce depletion deductions for the mining 5 so-call- ed industry. st well-define- d, rate of return that will Mining must yield an after-ta- x be sufficient to attract the necessary investment. Our past federal tax policies affecting the mining industry have permitted the growth of a healthy mining industry. Unfortunately, the mining industry would be seriously affected by several of the provisions of the House version of the current tax bill H.R. 13270 and also by some provisions of the Senate Finance Committees version of teh bill. Repeal of the investment credit will be a serious blow since the future development of the mining industry would be affected by the cuts in depletion rates in the House version of the bill with respect to foreign mines and, with the exception of gold, silver, iron, copper and oil shale, with respect to domestic mines. Third, the cutbacks in foreign tax credits under the House version of the bill would subject the mining industry to burdensome double taxation (U.S. and foreign income taxes on the same income) in many instances. While the Senate Finance Committees version of tcJi bill would restore the cuts in depletion rates contained in the House bill and would not cut back on tax credits, With respect to taxing, the minerals industry must be able to rely on existing tax policies continuing. This is particularly important for mining because of the long lead time, which means that funds expended may not begin to yield a return for years. investqeot SECURITY SCHOOL H.A.S.ID. STATE EXAMINATIONS Dim 1000 South Main C37. (plus evening examinations ) Call Collect A. K. Woebler The gold output dropped slightly to 42,829 ounces from 43,538 ounces. All totaled, Hecla produced 334,528 tons of ore, up from 258,085 tons last year. The production figures for the first nine months of 1968 were adversely affected by a strike at Heclas Lucky Friday Mine near Mullan, Idaho, the report said, explaining that the mine did not operate for the first five and one-ha- lf months of the year. Work resumes on old shaft The resumption of exploration work from the Magna Mining Co. shaft on the Prince property four miles east --of Mullan, Idaho, was announced Thursday by James C. Young and ton-Mag- na Critchlow, Kay managing directors of the Kellogg, Idaho, firm. The Bunker Hill Co., also of Kellogg, has installed an electric completed other preliminary work in the Magna tunnel and has started to pump out the 187-fodeep shaft, they hoist, has ot said. work is under the direction of Joe W. Reese, Bunker The Hill mining engineer. It is planned to complete the cutting of the shaft station at the 180-folevel and crosscut to the projected position of mineral veins intersected by the Magna crosscut tunnel. During the past summer, work was continued on a program of geochemical and1 geophysical reconnaisance surveying over the ot Princeton peproperty and additional' geochemical work is currently in progress, they said. mmPHASi Registrar 8t Transfer The Professional Stock Transfer Company Salt Lake City 322-169- 6 |