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By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

Rock engineering has now been practised as a discipline for about50 years, and many sophisticated methods of analysis for use in rock engineering design have been developed. However, analysis is only a tool for use in engineering design, and rock masses are often so complex that realistic modelling of them, even with sophisticated methods of analysis, is impossible. At the other end of the scale, rock mass classification methods have been developed to quantify the rock mass. These ?numbers? are now widely used for assessment of stability of underground and surface excavations in rock, for the determination of rock support requirements, and for the estimation of rock mass strength and deformation properties. In considering these areas, the two concepts?design, and prediction of behaviour?will be dealt with. The discussion will be introduced by a consideration of the characteristics of the rock mass, which will highlight the variability in its properties and hence the uncertainty in the behavioural parameters. Examples of real projects will be used to illustrate the discussion.

Jan 1, 2003

By J. Danoczi

Specially designed X-ray machines are used extensively on diamond mines for the recovery of diamonds from ores. These machines are extremely expensive and, at present, there are no reliable methods of determining if the equipment is performing efficiently. The objective of this work was to manufacture translucent X-ray diamond simulants, which would emit varying but known luminescence signals when exposed to X-rays. These X-ray diamond simulants could then be used to determine the efficiency of diamond recovery operations.

Jan 1, 2008

By O. A. Olaseinde

The 2101 lean duplex stainless steel has wide potential application in storage, heat exchangers, and in the oil and gas industries. This work investigates the electrochemical behaviour of 2101 duplex stainless steel with an addition of 0.15 wt% ruthenium, using potentiodynamic techniques in 1M H2SO4 at 25º, 40º, 60º, and 80ºC. The microstructures of samples were characterized using optical metallography and scanning electron microscopy. The results showed that the ruthenium addition moved the corrosion potential of alloy 2101 to a more positive potential. All samples containing ruthenium displayed longer passive regions at 25°C and 80°C compared to those without ruthenium. Alloys without ruthenium had higher critical current density (icrit) values when compared to the alloys with ruthenium. Ruthenium additions decreased the passive current densities and inhibited anodic dissolution. At room temperature the corrosion rate of alloys with ruthenium was lower than these without ruthenium.

Jan 1, 2012

Following a short review of selected literature, a back analysis of stress measurements of stress regeneration in a closed mini-longwall is shown. The agreement is good, lending confidence to the parameters used in the proposed numerical model. Foundation yielding was modelled in the absence of total stope closure. A ?Prandtl? wedge was formed, coinciding with the yield point of the pillar/foundation system. Some theoretical work is used as a starting point for the formulation of a new design methodology for strike or dip stabilizing pillar/foundation systems in deep level goldmines. The existing guideline for the stability of foundations (APS< 2.5UCS) is critically examined. Finally, the advantages of the new approach, and the work required to substantiate the proposed new design methodology, are outlined.

Jan 1, 1998

The re-use of waste water from coal preparation plant tailings is always desirable, but is generally problematic in terms of solid-liquid separation. Dewatering and disposal of coal slurry at a high percentage of moisture poses a major technological and environmental challenge to mining and mineral processing industries world-wide. Characterization and flocculation of these coal tailings reveals that the separation of fine coal tailings depends on factors such as size distribution, slurry viscosity, zeta potential, pulp density, circuit design, plant operating parameters, and the behaviour of solid particles in an aqueous medium. The present study was carried out on -600 mm coal tailings collected from a coking coal preparation plant of Jharia Coalfield, India, using anionic flocculent. Characterization studies revealed that the zeta potential was highest (-44 mV) at a pH of 9.0, the size range of the particles was 1.1?700 m, and the average ash content was 62.57%. Flocculation studies were performed at different solid concentrations, pH values, and polymer dosages. The results indicated an efficient settling rate of 178.15 mm/min at 8% solid (w/w) at a flocculent dosage of 32.50 g/t solid. The turbidity of the clear liquid obtained was 7.42 NTU.

Jan 1, 2014

By P. W. Lotz

Traditionally, bottle roll tests have been used to optimize the extraction process for best gold extraction and recovery. Such tests typically involve exposing the ore to defined reagent concentrations (lime, cyanide and sufficient oxygen) and balance the gold input with recoveries and losses. With mounting pressures to accommodate sustainability issues during development work, it became apparent that much more information would be required on the interactions and kinetic behaviour of solid and solution species during the entire leach process. This information is vital to enable proactive management of critical issues such as cyanide, arsenic, water and tailings management. Inadequate management of these aspects has led to temporary closures and, in cases of non-compliance, to the dynamically changing regulations. MINTEK?s advanced leach facility (ALF) is being developed with the aim of bridging the knowledge gap between the gold leach process and the predictable environmental impacts upon discharge. The facility aims to monitor all parameters of relevance such as pH, Eh, dissolved oxygen, metals, cyanide species, and viscosity during the entire process to enable more informed decisions on practical interventions. The presented set of data reflects first experiences gained from processing a refractory gold ore concentrate. Attempts at optimizing the process were limited due to the developmental nature of the work. Data relating to leaches with differing preoxidation conditions and cyanide staging is presented.

Jan 1, 2009

By Pekka Taskinen

Advanced optimizing control of the fluidised bed zinc roaster has been in use for an extended period at Boliden Kokkola and the implications are seen as extended bed stability, increased throughput and far better on-line availability. The roaster furnace control system developed is based on a dynamic and predictive furnace model, with parameters determined experimentally at the site. The controller maximises the concentrate feed and keeps the furnace operational parameters inside limits given by raw material mix and equipment constraints. The products of a zinc roaster, calcine, sulphur dioxide and the side products, such as mercury, meet gradually more stringent requirements, in particular as to their assays and total recoveries in the process chain. The end users of sulphuric acid in northern Europe, among others in the pulp and paper industry, require mercury levels much less than the conventional 0.2-0.4 ppm Hg. Therefore, secondary de-mercurising circuits have been used over the last five years for further cleaning the SO2 stream allowing production acid grades with less than 0.08 ppm Hg.

Jan 1, 2008

By O. Rondon

Localized uniform conditioning is a technique developed to spatially locate selective mining unit grades that have been derived using uniform conditioning for the assessment of recoverable resources. The technique has the advantage of producing selective mining unit estimates conforming to the uniform conditioning panel-specific grade-tonnage curve while introducing spatial information at the scale of the selective mining units. This paper describes an alternative technique to localized uniform conditioning which does not explicitly require the uniform conditioning panel-specific grade-tonnage curve to localize the selective mining unit estimates. The technique can therefore be implemented in mining software where uniform conditioning is not available.

Jan 1, 2014

Konkola No 3 shaft experienced severe mining-induced stress and time-related deterioration in ground conditions in an area where an over-cut and bench (OCB) mining method was used to extract a shallow dipping wide orebody. This caused an unacceptable risk for safe mining operations to sustain the required levels of production. After a review of the conditions it was decided to change the mining method to CASCADE to recover ore in the affected area and modify the OCB method and use a modified over-cut and bench method (MOCB) for new mining sections. This paper describes the geotechnical criteria included to derive the mining standards for the MOCB. The geotechnical risks are identified and taken into account to develop stope design parameters, stoping sequences and support requirements. A monitoring programme to assess conditions as mining progresses is also discussed.

Jan 1, 2005

The additive property of dispersion variances was found experimentally by D.G. Krige using data from the gold deposits of the Witwatersrand. In this property, called ?Krige?s relationship?, the dispersion of a small unit, v, within the deposit is equal to the sum of the dispersion of v within a bigger unit, V, and the dispersion of these units, V, within the deposit, D. It is known that the variance of the grades decreases as the support increases, the so-called volume-variance relationship. To analyse volume-variance and Krige?s relationship, the methodology herein proposed combines blending piles and geostatistical simulation to simulate the in situ and the pile grade variability. Variability reduction in large piles is based on the volume-variance relationship, i.e. the larger the support, the smaller the variability (assuming perfect mix). Based on a pre-defined mining sequence to select the blocks that will form each pile for each simulated block model, the statistical fluctuation of the grades derived from real piles can be simulated. Using this methodology, one can evaluate within a certain time period the expected grade variability for various pile sizes, and also calculate the Krige?s relationship between the small blocks and the piles of different sizes. A real case study using a large Brazilian iron ore deposit illustrates the methodology and demonstrates the validity of the results.

Jan 1, 2014

By W. H. Van Niekerk

The metal zinc has been around since only about 1400 AD. This may sound like a long time, but when compared to fellow base metals copper and lead, which were discovered in 5000 and 4000 BC respectively, it is evident that zinc is a fairly new kid on the block. This may also be the reason why many new facts and benefits of zinc are still being discovered. For instance, it has been discovered only in the last few decades that virtually no life on earth is possible without zinc. In this address it will be shown that zinc is not only very useful to mankind, but is in fact vitally important for all forms of life. It will be shown that zinc is natural, zinc is essential for life, zinc protects, zinc contributes to the well-being of society and that zinc is fully recyclable. It is therefore hoped, that by the end of this address, zinc will no longer be viewed only as the metal that is responsible for the nice colour of roofing sheets and steel buckets, but may indeed be man?s best friend.

Jan 1, 2005

By M. H. Solomon

After the global financial crisis of 2008, African mining is entering anew phase of development. The rapid withdrawal of emerging market funding from the critical exploration and development industries provided a hiatus in funding, a gap which was quickly filled by Chinese and other Asian investors. While the continent is still economically dependent on its extractive industries, the prevalence of Dutch Disease has undermined Africa?s ability to benefit fully from its mining, oil, and gas industries. While the extractive industries are closely related to many of the more fragile and failed states in Africa, it is equally true that the strongest states in Africa have mining-based economies. This paper explores the possible linkages between mining, strong and weak political economies, and poverty in Africa. It draws the conclusion that neither Dutch Disease nor Resource Course is a given in resource-endowed countries, and that it can be avoided if the mining economies in these countries are actively integrated into their respective broader economies and used to foster economic diversification. The author asserts that given the capacity constraints of many African governments, it is contingent on mining companies to become integrally involved in catalysing diversification around their infrastructure and supply chains.

Jan 1, 2011

By F. J. Plaul

The dominating technologies for steelmaking are the basic oxygen furnace (BOF or LD process, Linz-Donawitz) and the electric-arc furnace (EAF). The main iron input materials for both are liquid iron as hot metal, or solid iron as pig iron, DRI (direct reduced iron), HBI (hot briquetted iron) and scrap. Hot metal, pig iron (i.e., solidified hot metal) and DRI/HBI are virgin iron materials, which have to be produced from iron ore by so-called ironmaking technologies. The family of ironmaking technologies includes three process routes: blast furnace, smelting reduction and direct reduction. Driven by steadily increasing costs of raw materials in the last two decades, the sector has seen a number of new developments in ironmaking technologies, developments based on fluidized-bed technology. The main advantage of a fluidized-bed technology is that fine iron ore can be directly charged to the process without prior treatment; it does away with agglomeration and its concomitant cost, a step practised in blast-furnace, COREX® and MIDREX® processes. With Posco of South Korea, Siemens VAI Metals Technologies has successfully developed the FINEX® process, a smelting reduction based on the direct use of iron ore fines to produce hot metal. The key technology is the four-stage, bubbling fluidized-bed-reactor system, in which fine iron ore is reduced to DRI fines in a countercurrent flow with a reducing gas generated by coal gasification. Beside surveying the current state of the art, this paper discusses the technological principles of smelting-reduction and direct-reduction processes. The status of FINEX® and the outlook for further developments are described. Crucial to the successful development of the new ironmaking technologies for the direct use of fine ore was the scaling up of the fluidized-bed reactor system, which demonstrated new design features.

Jan 1, 2009

By D. S. F. Silva

A survey of 120 recent NI 43-101 technical reports was conducted to evaluate the current state of practice regarding resource classification techniques. The most common classification techniques are based on search neighbourhoods (50% of recent reports), drill-hole spacing (30% of recent reports), and/or kriging variance (6% of recent reports). Two new techniques are proposed. The first is based on kriging variance and involves removing one or more drill-holes with the highest weights while performing kriging and using the resultant kriging variance for classification. This technique has the advantages of variance-based techniques and reduces artifacts. The second technique is based on conditional simulation and uses a moving window approach for classification at the desired selective mining unit resolution based on larger production volume criteria. This technique has the advantage of accounting for heteroscedasticity, which is a common characteristic in mineral deposits, and also reduces artifacts since a production volume scale is considered for the actual classification. The drill-hole spacing, search neighborhood, kriging variance, and simulation-based techniques are described and compared for 2D and 3D examples with regular and irregular drilling patterns to highlight the advantages and disadvantages of each method.

Jan 1, 2014

Current mine production planning, scheduling, and allocation of resources are based on mathematical programming models. In practice, the optimized solution cannot be attained without examining all possible combinations and permutations of the extraction sequence. Operations research methods have limited applications in large-scale surface mining operations because the number of variables becomes too large. The primary objective of this study is to develop and implement a hybrid simulation framework for the open pit scheduling problem. The paper investigates the dynamics of open pit geometry and the subsequent material movement as a continuous system described by time-dependent differential equations. The continuous open pit simulator (COPS) implemented in MATLAB, based on modified elliptical frustum is used to model the evolution of open pit geometry in time and space. Discrete open pit simulator (DOPS) mimics the periodic expansion of the open pit layouts. Function approximation of the discrete simulated push-backs provides the means to convert the set of partial differential equations (PDEs), capturing the dynamics of open pit layouts, to a system of ordinary differential equations (ODEs). Numerical integration with the Runge-Kutta scheme yields the trajectory of the pit geometry over time with the respective volume of materials and the net present value (NPV) of the mining operation. A case study of an iron ore mine with 114 000 blocks was carried out to verify and validate the model. The optimized pit limit was designed using Lerchs-Grossman?s algorithm. The best-case annual schedule, generated by the shells node in Whittle Four-X yielded an NPV of $449 million over a 21-year mine life at a discount rate of 10% per annum. DOPS best scenario out of 2 500 simulation iterations resulted in an NPV of $443 million and COPS yielded an NPV of $440 million over the same time span. The hybrid simulation model is the basis for future research using reinforcement learning based on goal-directed intelligent agents.

Jan 1, 2008

By Y. Z. Ma

This paper presents a matrix formulation of factorial kriging, and its relationships with simple and ordinary kriging. Similar to other kriging methods, factorial kriging can be applied to both stationary and intrinsic stochastic processes, and is often used as a local operator. Therefore, the concepts of intrinsic random function and local stationarity are first briefly reviewed. Kriging is presented in a block matrix form in which the kriging solution is useful not only for understanding the relationships between simple and ordinary kriging methods, but also the relationships between interpolative kriging and factorial kriging. When used as a signal/noise-filtering method, factorial kriging is especially useful for multiscale modelling. Examples for general signal analysis and geophysical data signal filtering are given to illustrate the method..

Jan 1, 2014

By D. Vogt

South African underground hard rock mines are typically managed using measurements made daily, weekly or even monthly of key parameters such as face advance, readiness to blast, blast success, temperature or dust levels. Health, safety and productivity can all be greatly improved if a real-time measurement system can inform decision making. To enable this vision of widespread sensing, communication and decision support, CSIR has developed an open standard architecture for communication of sensor data, and a reference implementation using that standard. The standard, called AziSA, meaning ?to inform? in isiZulu, will allow any device that complies with it to join any network that supports it. The standard is designed for South African gold and platinum mines. To be practical in a typical Bushveld platinum mine, a real-time sensor system needs to be robust, reliable and cheap: ?Sensors are equipped with power sources that will last as long as the sensor is required. In effect, sensors need to be disposable: cheap enough not to warrant repair if they break. ?Communication in the stope is wireless, to avoid there liability problems associated with wire connections. For example, wires to sensors in the face area are unlikely to survive blasting. ?To get information out of the stope, the power line to the scraper winch is used as a communications link. Unlike a separate communications link, the power line will be repaired if damaged, because of its importance to production. ?Outside the stope, communications are transferred onto the mine communication infrastructure. To succeed as a management system, the next key element is the use of software decision support tools that will analyse masses of real-time data to extract key parameters and trends for decision makers. A range of sensors has been developed, including commercial sensors that have had wireless adapters added to make them AziSA compliant, and bespoke sensors that provide low cost sensing of typical mining parameters. An important parameter in any sensor network is the location of the sensor. This has to be easy and cheap to establish, so a tool has been developed to locate sensors in the confines of a stope, using ultrasonic and radio techniques. Once sensors are installed and located, they associate their location to all data that they produce. All the data from the system are captured at surface in a flexible database that can be queried by any application that requires data of any kind. It is simple to program alerts, and for actions to be associated with alerts. The use of wireless in stope also allows for communication from surface to the stope, or from stope to stope. The first implementation of an AziSA compliant system is being installed as part of the Mine Health and Safety Council funded rockfall elimination project. The design is discussed, and a future application for a platinum mine is considered.

Jan 1, 2009

By G. O. Oniyide, H. Yilmaz

The South African platinum mines in the Bushveld Complex (BC) have unique features that distinguish them from the gold mines. They have a higher horizontal stress closer to the surface, lower occurrence of seismic activity (caused mainly by pillar failure), and are sited in an area of high geothermal gradient. One of the future challenges of platinum mining is the increasing temperatures as the mining depth increases. High temperatures invariably bring about higher ventilation costs and require different approaches to human factors and ergonomics. Excavation stability would also be another area of concern due to increasing stresses. In this investigation, the effect of temperature on the physical and chemical properties of selected Bushveld rocks (chromitite, pyroxenite, norite, leuconorite, gabbronorite, mottled anorthosite, varitextured anorthosite, granite, and granofels) was studied by means of optical microscopy and scanning electron microscopy using energy-dispersive Xray spectrometry (SEM-EDX). The rock specimens were heated in a temperature-controlled oven a rate of 2°C /min to 50°C, 100°C, and 140°C and kept at temperature for five consecutive days. Samples were allowed to cool to ambient temperature (approximately 20°C) before image capturing. Micrographs of the specimens were taken before and after heat treatment. All the SEM samples were also subjected to heating and cooling on alternate days for ten days in order to observe the effect of repeated heating and cooling on the rocks. The results of the optical microscopy analyses showed minor physical changes in the rocks. The SEM images revealed that cracks initiating at lower temperatures extend with increasing temperature. The chemical analyses showed that the temperature range considered in this research is not high enough to induce changes in the chemical composition of rock samples.

Jan 1, 2016

By P. Turcotte, E. Karampinos, F. Mercier-Langevin

In some underground hard-rock mines, squeezing compressive ground conditions are influenced by the presence of rock foliation and high stress. In these cases, the orientation of the foliation with respect to the drift direction has a considerable impact on the magnitude of the resulting deformation. Irrespective of the reinforcement and support strategy, keeping drives developed sub-parallel to the rock foliation operational is difficult, and often requires excessive rehabilitation during the lifetime of the excavation. This study uses field observations and convergence measurements at the LaRonde and Lapa mines of Agnico Eagle Mines Ltd to provide guidelines of the anticipated squeezing levels at these operations.

Jan 1, 2015