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By G. J. de Korte

South Africa is reliant on coal for the generation of almost all the electricity used in the country, and several large industrial concerns such as Sasol are also coal based. Research relating to the mining, beneficiation and utilization of coal is important in order to ensure the optimal exploitation and use of coal within the country. The Fuel Research Institute (FRI) of South Africa was established in 1930 to investigate all aspects of coal beneficiation and utilization in South Africa. The FRI went on to conduct world-class research and in 1957 a pilot coal preparation plant was constructed in Pretoria to enable large-scale practical experimentation. The pilot plant played a pivotal role in the establishment of South Africa?s low ash coal export project. Political and economic factors contributed to the eventual closure of the FRI and South Africa experienced a period of about 10 years between 1990 and 1999 during which very little public coal preparation research was done. This changed for the better towards the end of 1999 when Coaltech 2020, a collaborative research program was established. Participants included the CSIR, universities, the government and the major coal producers. Coal preparation research conducted under Coaltech thus far include dewatering and drying of fine coal, size classification of ultra-fine coal and dense-medium fine coal beneficiation. Currently, the Coaltech focus is on the beneficiation of low-grade coal reserves and is investigating existing as well as new techniques that can be utilized to provide cost-effective beneficiation of low-grade raw coals and reject coals.

Jan 1, 2010

By G. Humphries, E. Wolmarans

The PPRust North project is an expansion of existing operations on the ?Platreef? orebody in the Limpopo Province of South Africa. Anglo Platinum has been mining and processing the Platreef since 1993 at the adjacent Sandsloot and Zwartfontein South open pits at a current rate of approximately 4.5 million tons per annum. This paper describes the origin of the proposed process flow sheet. A comprehensive test work programme has been conducted evaluating the best process flow sheet for the very hard and variable ore in the proposed mining area. The selection of the comminution circuit is discussed where conventional crushing and SABC options were analysed based on both extensive test work and analyses of current operational data at the existing concentrator. The application of the high pressure grinding roll technology has significant advantages?it replaces the 3rd and 4th stage crushing stages in a conventional circuit. This programme has been conducted over several years and has involved work done at site at pilot scale, internally at the company?s research facilities and externally at various sites. The on-site pilot work was completed over a 7-month period at the existing concentrator facility using a ThyssenKrupp-Polysius, ?Polycom?, 950 mm by 350 mm, high pressure grinding rolls (HPGR) machine. In excess of 185 000 tons of ore was processed through the unit during the trial period. This paper describes the test work programme and particularly the proposed application of high pressure grinding technology and its potential for further application in the platinum industry.

Jan 1, 2006

By G. van Aswegen, J. D. Bosman

Gold bearing deposits in the Witwatersrand consist predominantly of narrow tabular conglomerates with quartzite host rock. Extensive mining of these deposits at depth results in significant stresses being induced in the periphery of the tabular excavations. Where remnant pillars are created excessive stresses have resulted in the dynamic failure of the abutments. At the Hartebeestfontein Mine four brittle shear zones have recently been exposed and investigated. For most part, they represent abutment failure into the weaker hangingwall strata, striking parallel to the abutment, dipping towards the stope, with a sense of displacement consistent with closure of the stope from above. These shear zones are similar to those described in various publications by Ortlepp2: they are essentially brittle shear zones characterised by the presence of very finely comminuted ‘rock flour’ on an obviously freshly sheared surface. The angle between the shear zone wall and extension fractures indicate the sense of shear and the intersection of the extension fractures with the shear zone walls define a strong lineation normal to the direction of slip. It is suggested that these structures are referred to as ‘mining induced dynamic brittle shears’. Les gisements d’or du Witwatersrand consistent principalement de conglomérats tabulaires peu épais contenus dans une quartzite mère. Une exploitation poussée de ces gisements en profondeur a pour résultat l’apparition d’importantes contraintes induites à la périphérie des excavations tabulaires. Là où des piliers restants sont créés, des contraintes excessives ont eu pour résultat une rupture dynamique des appuis. Dans la Mine d’Hartebeestfontein, quatre zones fragiles de cisaillement ont été récemment exposées et étudiées. Dans la plupart des cas, elles représentent une rupture des appuis dans les strates moins solides de la paroi suspendue, orientée parallèlement à l’appui, inclinée en direction du chantier d’abattage avec une direction de mouvement consistante avec l’affaissement du toit de la galerie d’abattage. Ces zones de cisaillement sont similaires à celles décrites par Ortlepp2 dans diverses publications: Ce sont essentiellement des zones cisaillement fragiles caractérisées par la présence de « farine de roche » très finement réduite sur une surface évidemment fraîchement cisaillée. L’angle entre la paroi de la zone de cisaillement et les fractures de tension indiquent le sens du cisaillement et l’intersection des fractures de tension avec les parois de la zone de cisaillement définit une forte délinéation perpendiculaire à la direction du glissement. Il est suggéré que l’on se réfère à de telles structures comme des « cisaillements dynamiques fragiles induits par l‘exploitation ». Goldablagerungen im Witwatersrand bestehen überwiegend aus schmalen tabularen Konglomeraten mit Quarzitwirtgestein. Der umfangreiche Abbau dieser Ablagerungen in der Tiefe resultiert in signifikanten Drücken, die auf die Peripherie der tabularen Aushöhlungen wirken. Wo Restpfeiler hergestellt wurden, resultierten exzessive Drücke im dynamischen Versagen der Auflager. In der Hartebeestfontein Grube wurden kürzlich vier spröde Scherzonen freigelegt und untersucht. Zum größten Teil representieren sie Auflagerversagen im Stratum der schwächeren Stollenfirste, parallel zum Auflager verlaufend, in Richtung Abbaustelle abfallend, mit einem gewissen Grad an Verschiebung konsistent mit der Schliessung der Strosse von oben. Diese Scherzonen sind jenen ähnlich, die in den verschiedenen Publikationen von Ortlepp2 beschrieben werden: sie sind im Wesentlichen spröde Scherzonen, charakterisiert durch das Vorhandensein des sehr fein pulverisierten „Gesteinsmehls“ auf einer offensichtlich frisch abgescherten Oberfläche. Der Winkel zwischen der Scherzonenwand und den Bruchverlängerungen deutet die Richtung der Scherung an und die Kreuzung der Bruchverlängerungen mit der Abscherzone grenzt sich gegen eine starke Lineation normal zur Richtung der Lehne ab. Es wird vorgeschlagen, daß diese Strukturen als `vom Abbau verursachte dynamisch spröde Scherungen’ bezeichnet werden.

Jan 1, 2003

By H. Gumede

The challenges of noise emission in the mining industry are well known. These challenges are exacerbated by the increasing trend towards mechanized mining, and there is general consensus that an effective industry-wide Buy Quiet initiative (BQI) will significantly assist in reducing noise-induced hearing loss by minimizing noise at its source. In its endeavours to improve the health of workers, the MOSH Noise Team has facilitated development of a proposed strategy and structure for a BQI. Extensive consultation with stakeholders resulted in support for the initiative. The MOSH Noise Team was advised to solicit the contributions of consulting mechanical and electrical engineers (CM&EEs), whose support is viewed as critical for realization of the initiative, since elimination of noise at source is an engineering challenge, and most procurement standards and specifications are set and managed by engineers. A workshop with CM&EEs and their representatives, as well as group environmental engineers (GEEs), confirmed the urgent need for the initiative and provided valuable insights. The workshop used obstacle based planning techniques to identify the factors on which the success of this BQI will depend. Most potential obstacles to the implementation revolved around proper scoping, leadership commitment, and companies? adherence to the initiative. Lack of involvement by the relevant stakeholders and economic issues were also identified as potential obstacles. Delegates at the workshop felt that the successful implementation of the industry-wide BQI, will depend on the mining industry addressing the specific obstacles. The most critical and urgent issue was identified as the formation of a properly constituted industry-wide BQI task team that includes representatives from critical stakeholder groups and which is mandated and empowered to drive the initiative.

Jan 1, 2014

By Anders Erlandsson

"The crude ores from the LKAB mines are sorted and refined into a number of products. As there are a number of different plants the flow of material is often complex.in connection with studies of a proposed extensive investment program it was necessary to get a good measure of the changes which would be caused in the total profit by the different possible investments. A linear programming model was set up to accomplish this, and to cover the consequential effects on the production system. The objective function of the model maximized the total profit, taking into account restrictions in materials balances, blending conditions, production capacities and market. The changes in total profit resulting from the different investment alternatives, together with investment and fixed costs, were used in a series of investment analyses. The application has proved to be very successful and the results come very near to what was expected."

Jan 1, 2014

By C. P. Naudé

Mechel, a large, integrated steel, stainless steel, and ferroalloy producer in Russia is committed to upgrading its facilities to world class pyrometallurgical process and environmental practice. Yuzhural Nickel currently uses shaft furnaces to produce a matte containing iron, nickel and traces of cobalt. This rather old technology is thermally inefficient and is characterized by high operating costs. Mechel has investigated suitable equipment and processes to upgrade the plant, and awarded a contract for the construction of a 12 MW DC smelter, located near the town of Orsk, to Bateman Engineering Projects in June 2008. The selection of DC furnace technology for laterite smelting can be considered as a strategic highlight for the pyrometallurgical treatment of low-grade lateritic ores, and could be the first industrial-scale implementation of this technology. This project has been designed to achieve multiple goals including the demonstration of the process and associated equipment technology at commercial scale, to confirm the scale-up design parameters of the forthcoming 2 x90 MW, twin electrode DC furnaces, and to prove the environmental emission superiority of closed furnaces. It also provides a valuable operator training platform. This paper deals with the process design, key technology building blocks and design features which have been incorporated to produce a pyrometallurgical vessel capable of (i) resisting slag superheat and chemical aggressiveness, (ii) process fine material without pre-agglomeration, (iii) achieve high nickel recoveries and(iv) being tolerant to the variations in chemical composition of laterite ore. The approach to increasing campaign lives between partial and complete rebuilds, through the use of composite furnace module (CFM) technology originally developed and patented by the University of Melbourne, is also followed in more detail. Unfortunately, results from hot commissioning and lessons learned from initial operation are not available because the project completion has been delayed due to the worldwide downturn in demand for commodities. Keywords DC furnace, ferronickel laterite smelting, corrosive slag, coppercooler technology.

Jan 1, 2010

By G. Akdogan, I. Mwandawande, S. M. Bradshaw, M. Karimi

The mixing characteristics of industrial flotation columns were investigated using computational fluid dynamics (CFD). Particular emphasis was placed on the clarification of the relationship between the liquid and solids mixing parameters such as the mean residence time and axial dispersion coefficients. The effects of particle size and bubble size on liquid dispersion in the column were also studied. An Eulerian-Eulerian method was applied to simulate the multiphase flow, while additional scalar transport equations were introduced to predict the liquid residence time distribution (RTD) and particle age distribution inside the column. The results obtained show that particle residence time decreases with increasing particle size. The residence time of the coarser particles (112.5 μm) was found to be at least 60% of the liquid residence time, while the finer particles (19 μm) had a residence time similar to the liquid. The results also show that an increase in the particle size of the solids results in a decrease in the liquid vessel dispersion number, while a decrease in the bubble size increases liquid axial mixing. Finally, the simulated axial velocity profiles confirm the similarity between the liquid and solids axial dispersion coefficients in column flotation.

May 2, 2022

By T. T. Chiweshe, L. S. Mokhahlane, M. Welman-Purchase

This study examined an alternative technique of extracting tungsten from wolframite ore using a fusion method with ammonium phosphate salt. Current techniques use alkali salts to decompose tungsten ores and use various purification methods to produce ammonium paratungstate, which is a key intermediate precursor in the extraction of tungsten. In this study, a two-step extraction process, which involves thermal decomposition of the ore using fusion and a separation stage, is examined. The novelty of this technique is the ability to completely decompose wolframite ore and form an unstable tungsten oxide phosphate (WO2(PO3)2) compound. The instability of WO2(PO3)2 in deionized water enables selective isolation of tungsten as insoluble precipitates of WO3 and WO2. The decomposition reaction of WO2(PO3)2 is influenced by the presence of oxygen and determined to be first order under ambient conditions. Scanning electron micrographs and X-ray diffraction analysis showed above 80% of the tungsten precipitated compared with the amount that remained in the filtrate solution.

Jul 10, 2024

By P. Muthaphuli

Kumba Iron Ore?s Zandrivierspoort (ZRP) magnetite-haematite project aims to mine and beneficiate a magnetite resource with low contaminant levels to produce from 1 Mt/a to 2.5 Mt/a product, which will be either a concentrate, micro-pellets for direct reduction, or blast furnace pellets. Anglo American Technical Solutions Research conducted a number of piloting campaigns to validate the process design flow sheet, demonstrate process performance, and to generate data for use as a design basis. Secondary to this, the pilot plant was to produce approximately 7 t of magnetite-haematite concentrate with low enough SiO2 to be used as feedstock for pelletizing studies. The pilot plant achieved 34.2% mass yield, at 69.0% Fe, 2.2% SiO2, from an IsaMill grind of 80% -45 µm. This product quality will compare favourably to other leading direct reduction (DR) pelletizing concentrates. However, two-stage comminution to 80% -75 µm and beneficiation of ZRP ore will produce a blast furnace (BF) quality pelletizing concentrate, indicative quality being 67.6% Fe and 4% SiO2, at higher mass yields. An economic evaluation between producing a DR and a BF pelletizing concentrate will have to be conducted prior to finalizing the concentrate production flow sheet..

Jan 1, 2014

By C. D. Winkler

Vanadium-based sulphuric acid catalyst has been utilized to oxidize SO2 to SO3 since the early 1900s. This versatile product displaced the expensive and easily poisoned platinum-based catalyst in nearly all applications by the 1930s. MECS has been manufacturing the vanadium-based catalyst since 1925 and today is the leading supplier in the world of sulphuric acid catalysts in a variety of forms. Currently, MECS has worldwide customer/technical support for the catalyst as well as a dedicated catalyst manufacturing plant in Martinez, California. MECS also has a strong technical and research and development programme dedicated to creating new and improved products and services. This paper will describe some of the technical details of vanadium-based sulphuric acid catalysts as well as offering a unique look into how caesium-promoted MECS catalysts can be used in single and double absorption acid plants, and off-gas plants running on irregular gas feeds, to reduce emissions and preheater run times. An update on MECS technical services extended for use in characterizing converter performance is also presented.

Jan 1, 2009

By C. Rodrigues

This investigation compares the gas adsorption behaviour and capacity of three bituminous coals from South Africa, of similar rank, by assessing the characteristics of the raw coal, as well as the resulting float and sink fractions (at 1.80 cm3/g) obtained by density separation of crushed coal samples. Calculations were also made to obtain the raw coal gas storage capacity from the weighted contribution of both float and sink fractions results, thereby permitting comparison with the analysed results of the raw coal. The study demonstrated that the clean fraction of a coal has the highest capacity to retain gas in the sorbed state, followed by raw coal, and lastly the sink fraction, and re?confirmed previous investigations that showed minerals to be inhibitors of gas adsorption and retention.

Jan 1, 2008

By A. O. Filmer

In the mining and metals industry, business strategy demands that leaders extract more from any set of capital assets. This improvement is achieved through a combination of continuous improvement and upgrading of the assets. Continuous Improvement involves a series of incremental changes in the workplace to stabilize the process, remove waste, and test the limits of process capability. Enhanced Technology involves the replacement of an existing as set with a different process or equipment, to achieve a similar function in a more efficient and effective manner. The paper compares and contrasts the two methodologies and outlines the key business considerations which dictate how and when to select one or other improvement method. The paper also addresses the implications for these two improvement methods for those undertaking R&D in support of the mining and metals business.

Jan 1, 2009

By Q. G. Reynolds

The problem of direct-current plasma arc behaviour, interaction, and dynamics is considered in the context of metallurgical DC arc furnace applications. Particular attention is paid to the transient flow behaviour of arc systems. A mathematical formulation of the physics used to describe the arc system is presented, and includes the spatial and temporal evolution of fluid flow, heat transfer, and electromagnetism. Based on this formulation, a numerical model is developed using a finite difference approach on a regular cartesian grid in both two and three dimensions, with a special focus on robust stability, high resolution modelling, and high performance. A collection of results produced using the numerical model to study pilot plant-scale furnaces is then presented. These address a range of process and design variables and their effect on the numerical model?s results. Where possible, the qualitative behaviour of the model is compared to available experimental data. A number of novel effects and phenomena are seen in the dynamic behaviour of the DC plasma arc model for both single and multiple arc systems, which may lead to improved understanding, control, and manipulation of such systems where they occur in industrial applications. Keywords Pyrometallurgy, direct-current furnace, plasma arc, modelling.

Jan 1, 2010

By P. Saari

The Talvivaara deposits are located in Eastern Finland, within the Kainuu Schist Belt. These polymetallic sulphide deposits are of relatively low grade, but bioheapleaching enables economically profitable nickel extraction from the ore. Zinc, cobalt, and copper are also produced. Talvivaara?s production process begins with large-scale open-pit mining and four crushing stages, followed by stacking of the ore in bioleaching heaps. The ore is first leached for 13?14 months on the primary leach pad, after which the leached ore is reclaimed, conveyed, and re-stacked on the secondary heap pad. After secondary leaching, the barren ore will remain on the secondary heaps permanently. In the metals recovery process, the metals are precipitated from the pregnant leaching solution. Construction of the process was begun in spring of 2007 and first metal sulphides were produced at the plant in October 2008. The development of the bioheapleaching process was begun in a 17 000t on-site pilot heap operated during 2005?2008 and has continued in the industrial heap. At industrial scale, the development measures have focused on improving the permeability and aeration of the heap. Challenges with crushing and aerations systems at the beginning of industrial-scale leaching delayed the increase in metal recovery, but after the first two operational years the leaching results have improved significantly and the process is performing as targeted.

Jan 1, 2012

By D. Farrow

Future development of kimberlite mines is now focused on mining at deeper levels. The consequences are increased difficulty and costs of the mining operations. The decisions on investments require accurate resource evaluation and quantification of the risk. In the decision process the first step consists in choosing the number of boreholes sampling the pipe relative to the level of uncertainty that can be accepted. The uncertainty in the volumes of rocks of different types can be assessed as soon as we can estimate these volumes from a given borehole layout and calculate the error by means of its variance for instance. In theory this can be achieved by using geostatistical techniques (‘transitive theory’), but in practice the calculation of the error on volumes can be achieved in very particular cases, assuming some regular sampling patterns. A different approach has been chosen based on simulations, giving maximum flexibility to reproduce the reality of the sampling procedure. The idea is to simulate the geometry of several ‘possible’ pipes with their internal geology and estimate them by kriging. Several experimental errors are obtained on which risk analysis can be performed. The aim is to find a feasible method to perform the simulations with reasonable chance to correctly represent the reality, without data on the pipe extension. The methodology applied is based on some hypotheses that can be assessed by the geologist as well as by the geostatistician. The procedure assumes a geological model based on current knowledge including appropriate geostatistical variation. What make these simulations specific and powerful in this case comes from the fact that the boundaries between the different rock-types can be simulated using a transformation of the real 3D space into a 2D space defined by means of polar coordinates. Ultimate transformations to account for smoother variations with morphological transformations allow the generation of realistic pipe geometries on which sampling pattern can be used to evaluate the estimation errors. By estimating the simulated pipe geometries with different boreholes layouts a risk curve expressing the uncertainty in the volumes of the different rock-types versus the number of holes can be developed.

Jan 1, 2003

By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for the expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated ?risk? via the discount rate and other assumption contingencies around gold price expectations, operating parameters etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Carbon Modelling Technology and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. 44 percent chance of project finance loss.

Jan 1, 2012

By R. A. Govender, A. Mudau

"Rockbursts continue to be a major contributor to mine accidents and cause of damage to mine excavations, particularly at great depth. The problem of rockbursts has also escalated in civil engineering tunnels driven at depth, due to high levels of in situ stress at such depths. Attempts have been made in the past to mitigate the impact of rockbursts, with rock support remaining the ultimate method for providing stability in rockbursting environments. However, records show that, on many occasions, conventional support elements such as rockbolts, wire mesh, shotcrete, and lacing fail to withstand severe rockburst events.Recently, a support method termed ‘sacrificial’ support was proposed as a potential additional method to prevent rockburst damage, based on observations made after rockburst events in a mine. The philosophy behind a sacrificial support system is that, under dynamic loading conditions, support in the form of a liner must fail; leaving behind, undamaged, what was previously supported rock mass. The sacrificial support concept reported herein is applicable in situations where the source (i.e. seismic event) of the rockburst is located remote from where rockburst damage is likely to occur.Spalling tests based on the split Hopkinson pressure bar (SHPB) technique were conducted to study some aspects of dynamic rock fracturing in tension at high strain rates and the role a sacrificial layer plays in combating dynamic rock failure. A single Hopkinson pressure bar, with a long cylindrical intact rock specimen attached at the bar free end, was impacted by a striker on the opposite free end in order to generate a dynamic stress pulse responsible for spall failure upon reflection from the specimen free end. Different liners and liner combinations were then introduced at the specimen free end as support. Such a simple, yet robust, experimental set-up allowed the potential benefits and failure mechanisms associated with sacrificial support under dynamic loading to be demonstrated and compared with ‘sacrificial support’ behaviour observed in real rockburst events in a mine. Analysis of the results revealed that varying liner thickness and mechanical impedance between rock and support liner play a significant role in limiting rockburst damage."

Jan 1, 2016

By T. Feroze, B. Genc

"The ventilation of underground coal mines plays an important role in minimizing the risk of methane and coal dust explosions. The ability of ventilation, with the use of line brattices (LBs), to remove methane and coal dust in empty headings is dependent on the amount of air leaving the LB and entering the heading. The quantity of this air depends on the associated system variables, namely heading dimensions, settings of the LB, and velocity of air in the last through road (LTR). However, the exact effect of these system variables on the flow rate at the exit of the LB in an empty heading is not known. The installation of LBs in South African coal mines is generally carried out based on experience. This can result in overor under-ventilation and may increase the cost of providing ventilation or cause accidents, respectively. In this paper, using computational fluid dynamics (CFD), the air flow rate at the exit of the LB in an empty heading was estimated using full-scale three-dimensional models. The CFD model used was validated using experimental results Firstly, the settings of these three system variables were varied, the flow rates at the exit of the LB were measured, and finally the results were used to calculate the effect of each system variable. The outcome is a mathematical formula that can be used to estimate air flow rate at the exit of the LB in empty headings for any practical scenario.This paper will help the coal mining sector in South Africa by providing estimation models based on scientific reasoning for the installation of LBs, and will also serve academia as part of the curriculum towards educating future mining engineers."

Jan 1, 2016

By E. G. Galvez, E. Mate, L. A. Cisternas, C. Cruz, L. Cortés, M. E. Osorio

Designing and optimising flotation circuits are critical for mineral beneficiation plants, and therefore several procedures have been published. The modelling of flotation circuits with the objective of design and optimisation is problematic in that different approaches are used for the modelling of flotation units and regrinding units. Usually, regrinding models are based on particles characterised by their size, while flotation models are based on species characterised by fast and slow classes. The relationship between particle size and liberation can be used, but it requires laboratory studies that are time-consuming and costs are high. It is therefore not surprising that few studies on flotation circuit design and optimisation include flotation units and regrinding units simultaneously. In this paper, it is proposed to model the regrinding stage using species characterised by fine-slow, medium-fast, and coarse-slow flotation species. In deep, the regrinding model is derived from a population balance approach based on flotation species. The fraction of these species at the feed and product of the grinding unit is determined by flotation tests. Then, based on these data, the model parameters can be determined by a regression estimation procedure. A local ore was used to validate the model. Keywords: Modelling, flotation circuit, grinding circuit, process design

Jan 1, 2020

By M. M. Hajdasinski

The internal rate of return (IRR) is one of the most popular project evaluation criteria in the mineral industry, as well as in other industrial sectors. Analysis of its assumptions reveals, however, that this criterion does not function in the way it is supposed to. The search for a new criterion that would reflect the true rate of return (TRR) of an investment project or the true borrowing rate (TBR) of a borrowing project has led to the development of several approaches, yielding, for the same project, generally different values of the interest rate in question. Two of those approaches have been selected as the most representative and practical. Each has been presented in two variants, and subsequently analysed. As a result, it is shown that the various approaches to the TRR/TBR are all consistent with the net present value (NPV) criterion, and that each can serve as an independent project evaluation instrument, provided its assumptions can be regarded in a given situation as realistic enough.

Jan 1, 1987