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Outsourcing of specialist and non-continuous services is common practice in international mining operations. There is an increasing trend towards this practice in South Africa as a result of the major organisational changes that have taken place in the industry, and as lower revenues and production cost pressures have reduced profit margins. Many specialist functions have been outsourced in the industry for a long time, an example being shaft sinking, which is undertaken by specialist shaft sinking contractors. In the professional services area, some activities have been outsourced, for example the design and construction supervision of tailings dams, but mining related activities such as geology, mine planning and scheduling, engineering, ventilation, and rock engineering, have traditionally been carried out by in-house staff. In this paper some of the industry problems which have led to an increase in outsourcing of professional services are considered. Then the pros and cons of outsourcing are dealt with before outlining the factors which should be taken into account in choosing an outsourcing partner.

Jan 1, 1999

By J. C. Ashby

Electric utility response to certain amendments of the Clean Air Act has resulted in a production of several types of alkaline coal combustion byproducts. Alkaline combustion byproducts are gaining increased usage for acid mine drainage mitigation and abatement as research leads to a better understanding of their beneficial applications. Since January of 1997, Mettiki Coal Corporation has been injecting alkaline flue gas desulphurization byproducts from Virginia Electric?s Mt. Storm Unit #3 wet limestone scrubber into abandoned portions of the active Mettiki mine. This paper provides an overview of the key design, transportation, regulatory, and environmental issues faced in the project.

Jan 1, 1999

By A. Cichowicz

The objective of this work is to quantify the effect of the rock mass surrounding a stope or a tunnel on the seismic signal so that the rockburst damage on the excavation can be derived. It has been shown that the transfer function of rock mass surrounding an excavation can be modelled using a damped oscillator. The method of estimating the transfer function is extended in this paper. The parameters of a damped oscillator are estimated using inversion techniques and the transfer function is modelled as a time-varying system. The technique is tested on data acquired at three different sites in two deep gold mines. Employment of a modal model of the transfer function was suitable in two cases. Application of this technique is essential to track the time variation of the natural frequency during ground motion caused by a seismic event.

Jan 1, 1999

By A. J. Lynch

Mineral processing models have been discussed for many years but it was not until digital computers became available about 1960 that serious attempts at circuit simulation could be carried out. Even then the work was primarily academic until PCs could be used by engineers in plants and design offices in the mid-1980s. Since then simulation has moved quickly and it is now at the point that most processes can be simulated reasonably accurately for purposes of design and optimization. There are still some significant deficiencies, notably in dry grinding and separation, and in the chemical interactions in flotation. Future work will involve: ?improvements of existing models ?dynamic simulation for automatic control and, in particular ,for training which is a weak link ?using advanced simulation models to predict liberation and separation from data acquired from SEM-based liberation analysers. Eventually mineral processes models will be part of total simulation systems which will incorporate mining and downstream processes including all environmental impacts.

Jan 1, 1999

The 102nd Annual General Meeting of The South African Institute of Mining and Metallurgy was held in the Gold Room, Transvaal Automobile Club, 60 5th Street, Lower Houghton, Johannesburg on Wednesday, 18th August, 1999. Obituaries The President announced the death, during the year, of the following members: Honorary Life Fellows and Past Presidents D.D. Howat Life Fellows O. Deane, J.S. van Zijl Fellow A.A. Hejja Retired Fellows A.L. Forder, C.B. Parker, A.C. Petersen, F.W.J. Ross Members J.S. Stanko, D.H. Gray Retired Member P.K. Bredell Retired Associate I.S. van Eyssen In memory of the deceased and in sympathy with the bereaved, all rose and observed a moment of silence.

Jan 1, 1999

By I. Wayland

Value added blasting is a process methodology that links tasks and processes, with the aim to improve/enhance the technical application of explosives technology and initiating systems, resulting in improved output. The phases and steps of a typical value added blasting intervention are discussed in this paper. Each step having distinct purposes, principles and methodology. The underlying philosophies and process steps of the programme are described for each step. This paper gives an account of projects that have been completed in two Anglo American Gold Mines. This will include a description of the projects that were conducted at Vaal Reefs 8 Shaft and Western Deep Levels South Mine covering: ? The need for blasting improvements ? The approach that was followed ? The result of the programme.

Jan 1, 1999

Deep level block caving as a mining method is becoming more popular due to the fact that it is the lowest cost per ton underground extraction system. However, many block caves do not achieve their full potential due to draw horizon instability. In this paper five design rules are given to overcome this problem. The design rules described are applicable for slusher and trackless block caves where the operational depths exceed 500 metres.

Jan 1, 1999

By J. M. A. Geldenhuis

This work is concerned with studying possible reactions in the ilmenite furnace which may control the product quality of both slag and metal. Two different approaches were followed: comparing actual furnace slag compositions with the calculated equilibrium values and using commercial oxygen probes to measure the effective partial oxygen pressure in the slag and metal. It appears from a comparison of actual furnace slag compositions (in terms of the distribution coefficient of vanadium) with equilibrium values, that the TiO1.5-TiO2reaction may fix the effective partial oxygen pressure for the vanadium reaction. This possibility was tested using commercial oxygen probes (traditionally applied during steelmaking) to measure the effective oxygen partial pressure of both the slag and liquid iron in Iscor?s 3MVA pilot plant ilmenite furnace. From these measurements, it appears that commercial oxygen probes containing zirconia solid electrolytes can be used to measure the effective oxygen potential of both the slag and liquid iron. This oxygen activity correlates well with the FeO content of the slag. The results, furthermore, clearly illustrate that equilibrium conditions are not attained in the ilmenite furnace during the production of high titania slags, since the effective oxygen potential of slag and metal differ substantially.

Jan 1, 1999

This is an abstract from Environmental Service and Technology (Vol 32 No 20 1998) which will be o finterest to South African Mining and Metallurgical Scientists, involved in chromium mining and Metallurgical processing. Maybe the scourge of our dams and reservoirs?the water hyacinth can be put to good use! The novel technology of phytoremediation embraces plant accumulation processes for the cleanup of toxic heavy metals and organic chemicals. Several plant species have been identified that are excellent hyperaccumulators of a number of heavy metals, e.g., Brassica juncea (Indian mustard) and Thlaspe caerulescens (Alpine pennycress). Other speciesincluding Myriophyllum brasiliense(Parrot?s feather), Salixsp. (willow), and Popullussp. (poplar) have also demonstrated phytoremediating abilities.

Jan 1, 1999

By H. G. Oltmann

The equilibrium nitrogen solubility in the CaO-SiO2system was studied by a slag-gas equilibration technique, in graphite crucibles at 1823K under a CO-N2 atmosphere. The nitrogen content of the slags was determined by the Kjeldahl method. A reliable technique was used to obtain an initial nitrogen content in the master slags, from the addition and pre-melting of silicon nitride. Reduction of silica by graphite was found to occur during the equilibration experiments, resulting in compositional changes of the slags. The results were extrapolated to equilibrium by kinetic evaluation of the data. The nitrogen solubility showed good agreement with the result of Suito and Sano, while Fruehan?s results were lower. However, the results of the present study do not support the maximum nitrogen solubility values found by Sano.

Jan 1, 1999

A new system for granting access to mineral rights is proposed in the recently released White Paper, ?A Minerals and Mining Policy for South Africa?. Official policy states that ?Government?s long-term objective is for all mineral rights to vest in the State for the benefit of and on behalf of all the people of South Africa?. In order to achieve this objective, government is presently investigating the feasibility of imposing a financial or tax-related disincentive to holding mineral rights. The paper aims to present the pros and cons and to examine the alternatives which will cause minimal disruption to the minerals industry in the period during which mineral rights are transferred to the State. South Africa is a country whose economic and political history is embedded in the development of its mineral resources and has inherited a system which cannot simply be wished away. Hasty or radical decisions will compound the problem, rather than provide a lasting and widely acceptable solution. Mineral rights ownership and its impact on access to mineral deposits are discussed. Taxation as a possible economic disincentive is also evaluated. Finally, the value of mineral resource related information as a prerequisite to mineral policy decisions and as an alternative to mineral rights taxation is emphasized.

Jan 1, 1999

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

By B. Kenny

The aim of this paper is to provide an overview of existing forms of subcontracting in the South African mining industry. A descriptive framework is developed to understand different subcontracting arrangements. We argue that, in order to do so, it is important to distinguish between labour broking and gang subcontracting. Data resulting from a research project (including an analysis of historical sources, interviews with contractors and focus group interviews with mineworkers) is presented to highlight the implications of changing formations of subcontracting for the South African mining industry in the late 1990s. Apart from the subcontracting of ?traditional? functions, such as shaft sinking, access development, catering and hostel maintenance, contractors are now used in ?core? mining activities. In some instances, whole shafts are ?outsourced? to outside agencies. It is argued that certain of the subcontracting arrangements have serious implications for the ability of the mining industry to improve health and safety standards. Some of the practices can potentially result in conflict between different categories of workers, and, as a result, instability in the industry.

Jan 1, 1999

By D. Pillay

Outsourcing? and ?sub-contracting? have become buzzwords in recent years, as SA industry becomes increasingly exposed to the global economy, and global competitiveness. In its effort to ?catch up? after years of relative isolation, there is a concerted effort to learn from global ?best practice?, in order for South African companies, and the SA economy, to become ?winners?. There seems nothing wrong with this approach at face value. Companies need to compete and be profitable if they are to remain in business. Failure will in the end mean bankruptcy, and the loss of jobs. However, if one interrogates the precise practices, and their implications for all concerned?not just shareholders and employers, but workers, communities, the environment, future generations, the national economy?then the picture can change dramatically. ?Best practice? for whom?

Jan 1, 1999

By A. A. Smithen

There is an increasing awareness of the importance of including an assessment of environmental liabilities in the preparation of bankable feasibility documents. This means that environmental assessments of proposed, existing and decommissioned mine sites have to be undertaken for the purposes of quantifying environmental liabilities and assessing potential risks. This paper examines the need for considering environmental liabilities before describing the approach adopted in undertaking due diligence studies for the preparation of bankable feasibility documents and some of the difficulties experienced. Finally, some concluding remarks are made and the implications for the mining industry are discussed.

Jan 1, 1999

By M. H. Rogers

Coal has been at the forefront of mankind?s drive to improve his quality of life and also for sustainable development, from the Industrial Revolution onwards. The international coal industry today is large, with some 3,7 billion tons being produced and consumed in 1997. South Africa is an important participant in the coal industry, selling some 220 million tons in 1997 of which 64 million tons were exported. It is the second-largest thermal coal exporting country in the world. Despite the size of the world coal industry, it is not immune to change. The address examines growth projections for the industry and the change drivers that will impact on it in the future. Environmental pressures, the most important of which being the climate change debate, the Kyoto Protocol arising from this debate and the development of clean coal technologies, to reduce the impact of coal production and usage on the environment are considered. Other major change drivers considered are competition from other sources of energy and that between coal producers, the deregulation of the electric power industry, corporate restructuring and for the South African producer, legislative reform. The declining (real term) coal price, the consequent squeeze on margins and the need for producers to actively contain costs is covered. Technology has, in the past, been the driver behind the growth and change of the South African coal industry and its future role in ensuring that coal is the fuel of choice for continued improvement in standards of living and economic development is addressed.

Jan 1, 1999

Direct reduced iron (DRI), produced by the reaction between iron ore and reducing gasses, is used as a source of low-residual iron, in addition to ferrous scrap and pig iron, in the production of steel mainly through the electric arc furnace (EAF) route of steelmaking. The main DRI technologies in use are those of Midrex and Hyl, but in recent years a myriad of newer processes emerged based on variations in feedstock, reducing agent and fuel sources. Since the beginning of the nineties, DRI has increasingly emerged as a cheaper, low-residual iron feedstock for EAFs, which have traditionally relied almost entirely on ferrous scrap feed. The main stimulus behind the interest in DRI has been the increasing popularity of the EAF and the ?mini-mill? set-up as the favoured steelmaking option compared to the traditional and much less flexible blast furnace/ basic oxygen converter. This, however, has been creating a problem with regard to availability of low-residual scrap, resulting in upward pressure on high quality scrap prices and leaving DRI, traditionally the ?expensive alternative?, as a much more competitive consideration. The second main determinant has been the increasing production efficiency of existing steel plants which, in the light of improvements such as continuous casting and near net shape casting, has been constraining the supply of low-residual domestic scrap, traditionally the prime source of EAF feed. The explosion of current and proposed DRI projects has been accentuating the mounting interest of global role-players in assuring the availability of reliable sources of low-residual iron units for the future, especially in cases where definitive competitive advantages exist with regard to proximity to primary sources of iron ore and fuel (gas or coal).

Jan 1, 1999

By A. H. Mokken

Failed attempts at amalgamation of a gold/osmiridium concentrate, recovered behind pebble mill liners during re-lining, led to the discovery that the gold particles were coated and that nitric acid only could remove the coatings. Following this treatment amalgamation was rapid and resulted in a complete recovery of the gold that otherwise would have been lost in plant residues. Investigations into the nature and formation of the coatings led to the realization that the coatings were impregnations of harder elements, associated with the gold during grinding and driven into the softer gold surface by high pressure, impact and attrition. It was further realized that this phenomenon could be part of gold ore milling, world-wide. With these thoughts in mind the question is asked whether concentration down to micron sizes prior to cyanidation, should not play a greater role in gold recovery.

Jan 1, 1999

By B. Unver

Effective strata control is a prerequisite for maintaining an efficient mining operation. If the strata in the vicinity of an opening are not controlled effectively, it is impossible to perform a safe, efficient and economical operation. In this paper, the reasons and outcome of instability problems observed in roadways opened in clay and marl at the Bolu Colliery of Yeni Çeltek Establishment are investigated. Roadways under examination were located in a syncline causing high residual tectonic stresses. Factors affecting the instability have been studied thoroughly by examining geology and tectonics of the area, establishing convergence measuring stations to understand in situ behaviour of supports and laboratory tests to determine engineering properties of samples taken from nearby convergence measurement stations. As a conclusion, a new production strategy and a new support system are recommended to maintain stability.

Jan 1, 1999

By R. Pickering

The purpose of this paper is to explore the application of technology to stoping systems. Technology, because for the past 100 years the South African narrow reef mining industry has battled to control working costs in a labour-intensive industry. Stoping systems, because it is the stoping method and methodology which is at the heart of the mining system. Introduce a more efficient stoping system and the mining system will look after itself. The technology applied to stoping over the past 100 years can be categorized as follows: ?The introduction of pneumatic rockdrills early this century, the cumbersome rig mounted units being replaced by smaller, lighter hand-held units which were then made easier to use with the addition of an air leg ?Scraper winches to replace gravity and shovels to move rock both in the face and the gullies were first introduced in the late 1920s ?Hydraulic props as a support method arrived in the1960s ?Some people argue that tungsten carbide inserts were equally important. There have been a number of attempts to introduce different technologies into stoping, the most recent being trackless equipment. Where the stoping layout suits the technology it has been successful. There have been too many instances where a technology has been installed because it is fashionable. At the end of the day the outcome from change in the stoping systems has to be safer and more profitable mining systems. It is the contention of the author that change is only likely to be effective if it is supported by the introduction and application of appropriate technology.

Jan 1, 1999