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By W. K. Osae

A value assessment model which uses deal objectives, financial and non-financial indicators as a guide to assess value creation in mergers and acquisitions. The extent to which post- merger deal objectives are achieved and the potential benefits derived from mining deals that may not necessarily be financial of nature, but which are necessary to sustain and enhance future performance, were considered. The pre-merger and post-merger performances based on some financial indicators that reflect profitability for shareholders were also used. This value assessment model was used to assess four major deals that have occurred in the South African mining industry since 2003 as part of a postgraduate dissertation. In this paper, the Harmony and ARMgold merger is used as an example of how the model can be applied. The model?s relevance and applicability can also serve as a guideline in developing a framework or holistic guideline in assessing whether mining BEE deals in South Africa create value.

Jan 1, 2011

By D. P. Enright, D. D. Howat

Austenitic manganese-steel castings are very widely used in crushing and grinding in the' gold-mining industry in South Africa, The service life of a casting in a short-head crusher is difficult to predict because there are no clear-cut criteria by which such a judgement can be made, The addition of molybdenum and zirconium to the castings for crushers failed to result in improved performance, The results of extensive tests with through-hardened steel castings were very disappointing, mainly because of a design factor in the bowl liner. The design of the bowl liner is an important determinant of the life and performance of these castings. The extent to which the material in a crusher is reduced in size has profound effects on the consumption of metal and power, and on the effective life of a casting. Tests on manganese-steel castings in an 8 ft by 12 ft rod mill provided data on the total consumption of metal, and on the variations in the pattern and rates of wear of liners over lengthy periods. Progressive changes in the wear profiles of the lifter bars and the other liner components showed unexpected features. There are clear indications that, whereas a set of lifter bars will at first lift the charge strongly with relatively little slippage, there is a later period characterized by more slippage and greater wear on all the liner components.

Jan 1, 1980

By Phil Morriss

During the last 12 months, Sandvik?s Technical Service Group has carried out nine Scoping and Pre-feasibility studies for the application of In-pit crushing and conveying (IPCC) for large mining companies; the majority in conjunction with the Snowden Consulting Group. During these studies several key and recurring drivers have been identified: 1. Mining schedule issues ? there are several issues which crop up repeatedly, including: ?the unnecessary curvature of pit walls, ?very high rates of vertical advance which are (created by schedule optimisers to minimise stripping at all times) which are at the limit of what can be realistically achieved (and which of course make it harder for IPCC to achieve any impact), and ?The allocation of material to semi-mobile systems to maximise the ability for IPCC to be an effective alternative. 2. IPCC productivity issues ? the key issues are the IPCC system operating hours achievable, and the system throughput (both instantaneous and the average). 3. IPCC Risk issues ? there are perceptions about the risks associated with the use of IPCC which are a mix of reality and fiction, but which nonetheless create negativity towards the use of IPCC. In this paper, the authors wish to address specifically the factors affecting the IPCC productivity.

Jan 1, 2008

By J. A. L. Napier

An analytical solution to the best choice of cutoff grade for a mine is deduced for an assumed model of selective mining. It is found that this choice is determined by the constancy of a special function, the Hamiltonian, over the life of the mine. It is suggested that the appropriate constant value for this function should be determined by the expected long-term average of the paylimit. In that case, the optimum profile can be calculated at each point in time according to the prevailing working cost and product price. In particular, a decision can be made between operation at the true paylimit or at the subsidized paylimit implied by either the lease and tax formulas or the assistance formula for gold mines. It is also shown how the basic formulation can be extended for 'use in the determination of the optimum joint paylimit for two products over the life of the mine.

Jan 1, 1983

By C. M. Suhr

n order to validate the borehole analysis valuation procedure commonly used in the South African gold mining industry, a simulated orebody was used to create borehole values which would serve as data for the procedure. After confirming the distribution, calculating the variance size of area relationship, estimating the block variance, and calculating a profit measurement for each set, comparisons were made to the known population parameters. Results show only one overall bias (in the estimation of the lognormal third parameter), which is carried throughout the analysis. The remainder of the analysis is unbiased, validating the procedure.

Jan 1, 1987

By F. T. Cawood

Despite economic law and policy instruments with righteous intentions, the politics of resource nationalism could render these instruments unworkable. South Africa is a case in point. After the establishment of democracy, the country's outdated law and policy framework was replaced with a modern system, and in many respects an exemplary one. Converting the privately-owned mineral right system into a scheme of state custodianship allowed for several resource nationalism instruments, in addition to a resources royalty structure that first, compensates for the loss of a non-renewable resource; second, provides for optimal resource use through encouraging value addition to mineral production; and third, effectively targets economic rents. However, despite these improvements, the country went through a process of fierce debate on whether or not mines should be nationalized: the debate was fuelled by public anger with claims of political non-delivery. The result was considerable noise because of public unawareness of facts and distortion of the facts in political rhetoric. The purpose of this article is, first, to establish the status of resource nationalism in South Africa's mineral and fiscal frameworks; second, to give an opinion on the findings of the African National Congress's document on state intervention (Maximising the Developmental Impact of the People's Mineral Assets: State Intervention in the Minerals Sector (SIMS), 2012); and third, to fruitfully contribute to the fundamental discussion on how South Africans benefit from their mineral riches. The methodology is to start with explaining resource nationalism as an international issue for the extractive industries; then to offer an overview of existing resource nationalism instruments in South Africa-along with their effectiveness in attracting rents and investment. The major finding is that South Africa has resource nationalism firmly ingrained in its current suite of instruments. However, it is necessary to address the perceptions of bad governance, and above all, maintain the stability of the rules governing mineral development in South Africa.

Jan 1, 2013

By A. Dabbagh

The aim of this research was to investigate the effect of coke particle size on the thermal profile of the charge bed in the sintering process of iron ore. Six different ranges of coke particle size that could be used in practice in the sintering line of Esfahan Steel Company (ESCO) were used while parameters such as ratios and particle sizes of other ingredients, ignition temperature, and suction power were kept constant. Thermal profiles were obtained by measuring the temperature changes at three points in the sintering bed. The influence of coke particle size on rate of temperature rise, maximum temperature of the sintering bed, and the flame front velocity of the sintering bed was determined by analysing the thermal profiles. Moreover, the cold strengths of the sinters were measured using the Tumbler method. The results indicated that the coke particle size has a significant impact on the thermal properties of the sintering bed. Based on the results, a coke particle size between 0.212 mm and 3.350 mm was determined as the optimal range for the specific conditions in the sintering line of ESCO. Keywords iron ore sintering, coke particle size, thermal profile, flame front velocity, Tumbler index.

Dec 1, 2013

By D. E. Kraushaar

Ruhrkohle in West Germany evaluates and compares the net present values of long-term periods from its coal mines by a computer assisted long-term planning system. Two main parts of this system are computer programs for the prediction of: (a) mineable reserves and their distribution in longwall panels as a function of dependent geological variables; (b) daily outputs and costs of longwall panels as a function of dependent geo- logical, layout and operational variables. This paper describes the investigations, which ended in the above computer programs: ? the collection of information from past workings and their organization in databases; ? the statistical evaluation of the databases, and ? the resulting correlation formulas. The correlation formulas vary the mean dependent variables as a function of independent variables which can be indicated with high reliability for planning projects in the long run. The system thus serves the purpose of facilitating long-term planning and excluding biased individual judgement of local planning staffs.

Jan 1, 1987

A set of six design principles for rock engineering was developed by Bieniawski: design objectives; minimum uncertainty; simplicity of design components; state-of-the-art practice; optimization; and constructability. These principles translate into a ten-step design process. Although this methodology was developed for rock engineering, it is applicable to any design process, feasibility study, etc. Diligent use of such a process will ensure that a defensible design or evaluation has been carried out. Recently a ?strategic conversation? process has been identified by Ilbury and Sunter that includes the following ten steps: scope; players; rules of the game; key uncertainties; scenarios; SWOT analysis; options; decisions; measurable outcomes; and meaning of winning. A comparison of these steps with those of the design process shows a remarkable correlation. This is perhaps not surprising since engineering design is a strategic up-front issue, and front end loading in a project is critical to achieve the expected project performance. Based on the close correlation between the strategic conversation and engineering design processes, a circular design process, rather than a linear process, is proposed. The ?circle of design? better reflects the importance of review and monitoring in the two phases of successful design and implementation?defining the design, and executing the design.

Jan 1, 2009

By R. Falcon, A. J. Ham

This paper summarizes the characteristics of Southern African coals, presents a fundamental approach to the combustion performance of coal, and reviews some of the recent developments in the fields of technological evaluation and boiler design for coals typical of this region. This includes a summary of the petrographic constituents of coa~ highlighting the differences between the Palaeozoic coals of the northern and southern hemispheres (Laurasia and Gondwana respectively), and the effects of these properties on the combustion performance of coal as seen in terms of laboratory, pilot-scale, and full-scale operating conditions. Recent developments in boiler design linked to advanced characterization studies and commercial experience have led to unprecedented use, with maximum effect, of the low-grade, high-ash, high-inertinite coals typical of some parts of this region. In the light of this success, more adequate understanding and better methods of assessment of the coals typical of the Gondwana region are called for, particularly in the light of the price premium for high-grade coal and the more cost-effective lower grade coals on the international steam markets.

Jan 1, 1988

By M. Arnesen

Mining professionals recognize the need to continuously evaluate and refine mine planning standards and scheduling. We must examine our current reality, and evaluate the following: •How well do our planning standards represent the actual mining process? •To what extent do they support the requirements of the downstream mining activities? •How we apply them to operational management and control? In most operations, mine-planning standards are global averages. Little differentiation is madein quantifying key planning variables. Often standards used in the long-term, are applied to the short-term, and the standards and scheduling precedents are only reviewed occasionally. Mine-planning standards applied to production schedules are often only focused on the management of functional mining performance, and play no role in managing the requirements of down stream processing. Many mining operations are characterized by high levels of fluctuation, and typically incorporate a wide range of factors and adjustments to compensate for deviations from performance targets, in mining operations as well as for the other business areas. The reason for using global averages is because of a lack of understanding of the causes of deviations that occur through the process, and the impact that they may have on the performance of the business as a whole. Average standards and factors are often used to quantify the variability in a system. From these average values, measurement standards and performance targets are derived for the planning and execution environments. During the execution of a plan/schedule there will be deviation in actual performance and the planned ‘average’ standards. In reality the ‘average’ conditions seldom occur and the impact of variability and interdependency are seldom constant or predictable. The predictability of variability and interdependency is further complicated by the fact that mining conditions have a role to play in the actual production performance, and they too are variable. By developing the throughput knowledge of our production systems, we can better understand the nature of variability and the interdependency within the systems as well as the impact of interdependency between the links in our production chains. With this knowledge, planning standards and scheduling precedents can be better defined and sensibly differentiated. This will improve planning and management of ore utilization, mining production and the effectiveness of processing. As a result the business will be more stable and predictable and business performance will be improved. The purpose of this paper is to describe: •At a high level, the scope for refining and differentiation in mine planning standards, and incorporating geological and plant parameters into mine scheduling. This will improve planning and scheduling and the overall performance of the mine. Given our current level of scientific knowledge and the technological tools at our disposal we should be able to plan and schedule production so that we can manage pro-actively and improve business performance. In doing so we can also improve reconciliation and value tracking through mining and processing •The flexibility and functionality of the XPAC planning and scheduling tool that will enable a throughput management approach.

Jan 1, 2003

This paper illustrates the application of numerical modeling methods, in conjunction with limit-equilibrium techniques, to the location of critical slip surfaces in slope-stability problems. Initially, the Spencer slice-based method of analysis is introduced, together with a dynamic-programming algorithm for slip-surface location. This limit-equilibrium method is assessed critically through the use of an illustrative problem. The technique is then extended to locate the critical slip surface for a similar slope, but with more complex constitutive and yield relationships for the material comprising the slope. To this end, the use of the stress field generated from a finite-difference program, together with a dynamic-programming search routine, is presented as an advanced technique of slope-stability analysis for engineers.

Jan 1, 1993

By G. R. Marchant, B. K. Loveday

A mathematical model has been developed for flotation circuit simulation. This model was designed to investigate the effect of varying the circulating loads and to determine whether an improvement in overall efficiency could be gained by a size separation prior to flotation. Model parameters were obtained by regression to plant data. Highly correlated parameters in the model were combined to reduce the number of parameters so that the need for excessive data gathering was eliminated. Mass balance smoothing was used to obtain a consistent data set for regression. The results of the simulation indicate that for the same grade of concentrate, an increase in copper recovery of 0.6 per cent may be possible by increasing the circulating loads. The results of the simulation also indicated that recleaning of the plus 200-mesh material may be beneficial.

By G. Raspa

The paper describes a computer procedure for evaluating and selecting recoverable reserves in a mine worked by sublevel stoping. The boundaries of the volume to be mined are optimally defined by means of the 3-dimensional Lerchs-Grossmann algorithm, separately applied to both sides of the panels. The procedure, which has been developed for Masua Mine (Sardinia), also provides for smoothing the optimized boundaries, positioning the drilling drifts, interactive design of drilling fans and calculation of tonnage and grade of each volley. These tonnages and grades form the input of another procedure evolved for production planning.

Jan 1, 1987

By M. Gericke

Over the past few decades the commercial application of heap bioleaching technology for the extraction of base metals has become increasingly important, due mainly to the depletion of high-grade ore reserves. Heap bioleaching is widely used for the extraction of copper from secondary copper sulphide ores. The design and engineering aspects of the process have received considerable attention, but issues related to the microbiology of the process have been subjected to less rigorous scrutiny. The major role of micro-organisms in bioleaching processes is to catalyse the regeneration of ferric iron and protons, from ferrous iron and by sulphur oxidation respectively. It is accepted that even the most carefully engineered heaps are heterogeneous in terms of temperature, pH, the presence of anaerobic pockets, irrigation efficiency, and dissolved solutes. Since interactions between solution chemistry, mineralogy, and microbial populations exist in heaps, a better understanding of the correlation between microbial numbers and types with changes in these chemical and physical profiles with time would be beneficial during process design and operation of heaps, and could result in faster start-up times and higher metal recoveries. This paper reviews the role of microbiology in heap bioleaching processes. Aspects such as microbial diversity, identification and monitoring of cultures, inoculation strategies, colonization behaviour, and tolerance to metals and salts are discussed, and the potential contribution of the knowledge to the improvement of the operation and design of heap bioleach processes assessed. Conclusions are drawn with respect to the role of genetic engineering, heap inoculation practises, and remaining areas for future heap bioleaching research and development.

Jan 1, 2012

By R. B. MacGillivray

The No. 2 Seam at Van Dyks Drift Colliery was found to be made up of six easily recognizable bands or plies of differing qualities. Not only did the plies differ from one another in quality, but their thickness and quality varied laterally across the mine. The economic production of a Iow-ash blendcoking coal for supply to the Japanese Steel Mills called for the mining of different portions of the seam. The portions that could be extracted economically varied in thickness and position within the No. 2 Seam across the mine. A unique system of selective mining had to be developed involving the dispatch of two separate streams of coal out of the mine. Conventional American mechanized pillarand-stall mining was used, and the productivity was improved by the installation of twin conveyor belts into a double-header section. The method of grade control that was instituted to ensure efficient extraction of the available coal reserves is described.

Jan 1, 1985

For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analysts' inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted `floor' value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

By A. C. Wingrove

The paper outlines the selection of a dewatered tailings backfill system for the Johannesburg Consolidated Investment Gold Division, and covers the following aspects: (i) 16 Shaft pilot testwork; (ii) engineering design problems relating to the Cooke 3 Shaft backfill operation; (iii) in-line mixing - applications with respect to the Randfontein Estates Gold Mine and Western Areas Gold Mine backfill operations; and (iv) pipeline friction losses.

Jan 1, 1988

The auriferous Carbon Leader reef which is the subject of this study can be subdivided into two types of sedimentological units, each with its characteristic spatial variability. For the longwall mining method applied at Western Deep Levels gold mine, subdivision of the orebody improves the estimation of the actual error variance, but not the grade estimates themselves. This can only be achieved by choosing oreblocks of a size and shape that are maximal parallel to the longwall and minimal at right angles to it, within the limits of mining restrictions. While simple kriging is the only method that gives unbiased results, the difference between untransformed and logtransformed kriging is negligible.

Jan 1, 1987

By D. H. Hillhouse, G. Lange

Design features of a deep-level shaft by D. H. HILLHOUSE. Pr. Eng.(Visitor)- and G. LANGE. Pr. Eng.(Fellow) Design and technical features of a large, deep shaft are described, and details of the sinking equipment are given. Special features in shaft steelwork, materials handling, and station layouts are described and illustrated. The details of the precast brattice wall are given, together with the reasons for the separation of all steelwork from the brattice wall. A newly developed device for the location of the shaft conveyances while loading or unloading at underground stations is briefly described and illustrated. The paper concludes with a summary showing the rates of progress and costs for the shaft-sinking operation.