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By M. Hermanus, N. Coulson, N. Pillay

"SynopsisThis paper assesses the effectiveness of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH) and its potential to improve mine health and safety in South African mines. Developed by the Chamber of Mines, which represents the majority of the country's large scale mining employers, MOSH was devised to accelerate progress towards achieving health and safety milestones, which were set by tripartite agreement in 2003. The paper documents and builds on the findings of a study conducted by the Centre for Sustainability in Mining and Industry (CSMI) in 2011 that evaluated MOSH strategy, structures, and process of implementation.The study found that MOSH operated across the mining sector, was directed and dominated by experts and, despite best efforts to include other stakeholders, was led by employers. Statutory worker health and safety representatives and structures were not integrated into the complex change process developed by MOSH. The Mine Health and Safety Inspectorate (MHSI) and organized labour were ambivalent about direct involvement in MOSH and preferred regulatory measures to enforce the participation of mines. MOSH interventions were not targeted at mines with a poor health and safety record, and MOSH lacked a baseline from which to track impacts on sector-wide health and safety performance. The leading practices most widely adopted by mines were designed to improve, rather than fundamentally alter, existing practice. Although the depth of engagement with MOSH among stakeholders and on mine sites varied, mining companies, labour representatives, and the Mine Health and Safety Inspectorate (MHSI) saw the programme as significant.IntroductionIn 2011, the Chamber of Mines commissioned the Centre for Sustainability in Mining and Industry (CSMI) to evaluate the progress and effectiveness of the rollout of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH). CSMI, based in the School of Mining Engineering at the University of the Witwatersrand, is an independent research centre conducting health and safety research relevant to all major stakeholders in the mining sector. The purpose of the evaluation was to identify the factors that enabled or hampered the adoption of new technologies or practices. The timing of the evaluation, two years before the deadline for the 2013 safety and health milestones, allowed time for adjustments to be made. This paper summarizes the results of the evaluation and includes further analysis and discussion of the nature of the programme and the conditions that act to advance it or it hold back."

Jan 1, 2015

By F. Reyes, M. Hilden, G. Forbes, M. Yahyaei

Since AlphaGo defeated the best human player in the game of Go in 2016 - something thought to be an impossible achievement - machine learning, deep learning and reinforcement learning have caught the attention of scientists, the media and the general public alike. This recent development in machine learning (let us remember that neural networks have been available for decades now) opens new possibilities in the areas of modelling and process control. However, little has been reported in the minerals processing industry about these new possibilities and opportunities. This paper presents and introduces the topic of reinforcement learning and the different platforms that allow its implementation. The paper shows the consequences of using reinforcement learning for the specific area of process control and optimisation. As an example, the authors present the use of reinforcement learning for the control of a SAG mill closed with a pebble crusher using industrial data from an operation. A comparison with advanced model-based process control is provided, showing the benefits and shortcomings of reinforcement learning as a new control and optimisation technique. Keywords: Reinforcement learning, deep learning, process control, process optimisation

Jan 1, 2020

By M. Kumral, Y. A. Sari

Underground mining operations tend to have higher operating costs than surface mines. When metal prices decrease, profitability is jeopardized due to the high costs. Therefore, mining management harnesses new practices that increase operational efficiency. One way to manage this challenge is to invest in new mine planning practices. Stope layout optimization as a part of underground mine planning aims to identify a portion of the orebody in the form of production volumes (stopes) to maximize profit under roadway and stope dimension constraints. In this paper we propose a novel approach based on identifying ore-rich areas of the deposit and prioritizing their extraction through an iterative heuristic clustering approach. The proposed approach is compared with and validated by an exact method through a small mining example. The heuristics produced nearly identical results in a very short time. Finally, a case study was carried out using a larger data-set. The cluster-based iterative approach generated nearoptimal stope layouts in a computationally effective manner.

Mar 1, 2021

By M. Aatach, St. Gaydardzhiev, M. Kadiyski, E. Visariev, V. Stoilov

Detailed process oriented characterisation on representative samples from plant survey of the slag flotation plant belonging to Aurubis, Bulgaria has been realised in order to evaluate the mineralogical occurrences of Cu, Ni, Mo and Co bearing phases. The slag subjected to flotation consisted in majority of fayalite, magnetite-iron oxides and a glass-like phase. Ni and Mo have been found to be closely associated to magnetite and fayalite. The tailing from the slag flotation has been subjected to sulphation roasting followed by water leaching as a hydrometallurgical means to recover the remaining Cu, Mo, Ni and Co. Based on the various sulphation roasting conditions (acid dosage, duration, temperature) copper, nickel and cobalt were brought to solution to a different extent. Molybdenum was the most difficult to be rendered soluble due to its close association with iron, suspected to form an insoluble compound with it. Sulphation roasting performed at 350ºC has secured the best extraction degree for Cu, Mo and Co, while maximum recovery of Ni has been documented when roasting was done at 150°C. Keywords: Copper slag; characterisation; SEM; roasting; metals leaching, hydrometallurgy 16(2), 153–65.

Jan 1, 2020

By C. Yi, M. Onifade, B. Genc, S. Dineva, T. Zvarivadza, M. Khandelwal

Deep level hardrock mining faces increasing challenges from elevated in situ stresses and associated rockbursts. This study aims to develop a systematic framework for evaluating destress blasting effectiveness, with a focus on deep Swedish hardrock mines. The methodology integrates a critical review and adaptation of global best practices: advanced numerical modelling (static and dynamic simulations), field-based rock fracture monitoring using ground penetrating radar and borehole imaging, and application of rockburst prediction criteria including the strain energy storage coefficient (F), brittle shear ratio, and burst potential index. Geostatistical simulations, machine learning models, and industrial internet of things-based, real-time monitoring are proposed to enhance predictive accuracy, model calibration, and operational adaptability. Key findings show that effective destress blasting evaluation requires multi-modal integration of numerical outputs, field observations, microseismic trends, and uncertainty quantification, accounting for site-specific geological variability and dynamic stress redistribution. The study advances the field by proposing a predictive, feedback-driven evaluation framework tailored for deep Swedish mining conditions, capable of improving proactive rockburst risk management. It offers both practical tools for mining practitioners to optimise stress management, reduce seismic hazards, and enhance excavation safety, and academic foundations for future refinement of destress blasting models, geotechnical monitoring strategies, and adaptive design protocols. This research contributes to safer, more efficient deep mining operations by bridging gaps between theoretical modelling, empirical monitoring, and real-time, data-driven blast design optimisation strategies.

Jun 27, 2025

By M. Handley

The Witwatersrand Basin contains by far the most gold ever found, and has hosted mining from its discovery in 1886 to the present. For many years, South Africa was the world’s largest producerof gold, nearly all of which came from the Witwatersrand. Since 2000, South Africa has fallen back several positions because of declining gold output. There are many complex and varied reasons for this; however, declining gold resources in the Witwatersrand Basin are not one of them. As far as the author knows, there are no qualified estimates in the literature of gold remaining in the Witwatersrand Basin. This paper collects mining data from several sources and then, using elementary gold accounting and error analysis, attempts to estimate the amount of gold remaining in the Witwatersrand Basin. It includes gold underground in existing and defunct mines, in evaluated ore resources, and dumps. Compiled data from 1887 to 2019 shows that 50 200 t of gold were produced by Witwatersrand mines, while it is estimated that a further 48 100 t remainunderground, both within and outside of mine leases, a further 1 600 t on the surface in tailings,and an unknown amount in rock dumps. Nearly all of this gold will remain inaccessible with current mining methods, and major technical developments in mining will be necessary before any of the gold can be categorized as a code-compliant resource or reserve. To win this prize, the mining industry will have to rethink its approach to mining, both in old mining leases and in the unexploited ground. It will also have to find effective means of preventing gold theft and informal mining, which are on the rise.

Apr 5, 2023

By R. J. Hundermark, L. R. Nelson

The critical importance of tap-hole design and management to furnace performance and longevity is explored through examining some of the specific matte, metal and slag tapping requirements of non-ferrous copper blister and matte converting and smelting, ferroalloys smelting and ironmaking systems. Process conditions and productivity requirements and their influence on tapping are reviewed for these different pyrometallurgical systems. Some critical aspects of the evolution of tap-hole design to meet the diverging process and tapping duties are examined. Differences and similarities in tapping practices and tap-hole management are reviewed. Finally core aspects of tap-hole equipment and maintenance are identified that are considered important to securing improved tap-hole performance and life, so pivotal to superior furnace smelting performance.

Jan 1, 2014

Dr Hanekom I would like to thank Dr Hanekom for a very valuable -contribution; it summarizes careful statistical test work which was an omission from the original paper. Minor manipulative details, the application of a finer measuring graticule and the reproducibility of the procedure are described and the author accepts with gratitude this ready-made answer to the first and second points of Dr Finkelstein's comments. Mr Williamson The author is indebted to Mr Williamson for historical background to early experiments with captive bubbles and it is conceded that the original paper described another avenue to an old flotation goal. The field of application is restricted and we would not work with all the material illustrated by Klassen and Mokrousov.1 The particles in Figure 74(a) are far too large and irregular; material in Figures (b) through (d) could be employed for semi-quantitative work in spite of obvious disadvantages; Figure 74(f) represents ideal conditions. We have studied this mineral-collector association in the size range given and results were satisfactory. For larger pick-up values than that illustrated an induction period of more than 0.01 second was required (actually 90 seconds for a maximum bubble load at pH 7.2 with 25 g/t oleic acid!). REFERENCE 1. KLASSEN,V. I. ANDMOKROUSOV,V. A., 'An Introduction to the Theory of Flotation,' Butterworths, London, 128, Figure 74, (1963). Mr Slander and Mr Kooij Researchworkers in a practical mineral development laboratory may well ask what contribution yet another micro-technique can make to the problems of large scale ore flotation. The obvious answer is that there can be little or no direct translation of results obtained with a static system comprising air bubble and pure mineral concentrate to a dynamic multicomponent operation. However, for the rapid study of one mineral or variable some small scale apparatus must be employed. In the Anglo American Research Laboratory, the described semi-quantitative pick-up technique has filled a niche and requirement. For ourselves, the system represents a definite advance over the contact angle approach in that samples of minerals conventionally prepared in laboratory or plant may be used, which is a desired step nearer flotation. We bracket this pick-up apparatus with the Hallimond tube1,2 and evidence is now to hand that pick-up curves may often be related to flotation recoveries obtained from this tube with pure mineral samples and from the Fuerstenau glass cell3 with the total ore at low pulp densities. We would not wish to push the comparison of pick-up results past this stage for there is much published development work relating the Hallimond and Fuerstenau equipment to flotation on a larger scale. At the Anglo American Research Laboratory for example, a test in a Fuerstenau cell is often the final integrated step in laboratory investigations into the TORCO process. As these contributors rightly point out, pick-up tests can offer nothing towards the determination of optimum reagent dosage for large scale flotation. This is the function of bench-type flotation cells with up to 2 kg batches of ore. At this level, collector performance and consumption and physical properties of the froth are more comparable with large scale operation. The pick-up cell, Hallimond tube and Fuerstenau cell are essentially equipment from which the effect of control parameters can be derived. For the assessment of collector behaviour, the pick-up approach is rapid and economic and we offer here a pick-up contribution towards the flotation of Witwatersrand uraninite with anionic sulphonate collectors (Fig. 1). A large crystal of the local mineral was not available for contact angle measurements and owing to its low concentration in Witwatersrand gold-bearing reef, a small sample was laboriously obtained by tabling, superpanning and heavy medium separation. The pick-up values of a sized portion were determined by the described procedure in the presence of nine petroleum sulphonate collectors. Responses fell into two categories; "normal" curves (dotted lines) and a group of collectors which were very active at low concentration but showed depression of pick-up at the higher levels. The similarity in form of curves for collectors 1 and 3 was apparent and reagent 3 was found to be simply a diluent of 1. Otherwise, collector performance could not be related to either sulphonate content or molecular weight of the active constituent. However, reagent 2 gave the best performance in a bench flotation cell with regard to overall uranium distribution but, as predicted, reagent 1 yielded the best grades. Later pick-up tests with a similar class of collector have suggested that depression at high reagent concentrations may be due to "bubble armouring" whereby an hydrophilic air-liquid interface is produced which rejects mineral attachment. Prolonged investigations with the same mineral sample have not been required except for the study of uraninite which lasted for more than a year. Variation in pick-up response could not be detected over this period during which the mineral was stored under distilled water. The only visible change was a small efflorescence of lead sulphate, readily removed and decanted off after stirring with a glass rod in the sample tube. In its main role as a "trouble-shooter", the pick-up method is applied to fresh mineral samples taken from a flotation plant and soon discarded or from a current run in the ore-dressing laboratory. After production of a concentrate, a solvent cycle, as described in the original paper, may be required to remove heavy organics or other contaminants as when a sample has been taken from circuits containing detergents, grease or return flotation solutions. This solvent cycle will not remove chemisorbed collectors and we prefer not to work with minerals from flotation tailings or with pick-up cell discards. It has been thought preferable to answer the contributors' other apprehensions with regard to sample preparation, activators, depressants and the physical properties of reagents in another paper on offer to this Journal. It covers pick-up investigations relating to the flotation of nickeliferous pyrrhotite at two Anglo American Corporation Mines, which approach seemed the correct orientation for a reply to another contributor to this paper.

By C. Liu, G. Zhu, Y. Liao

"The effect of particle size on the flotation kinetics of a low-rank coal was compared using air bubbles and oily bubbles. Five kinetic models were applied to the data from the tests to derive the relationships between the flotation rate constant, the ultimate recovery, and the particle size fraction. The results show that oily bubble flotation (OBF) resulted in a lower ash content and higher combustible recovery than air bubble flotation (ABF), especially for the -125 ??m size fraction. It was found that the flotation of a low-rank coal in individual size fractions using air bubbles and oily bubbles can be best described by a first-order model with rectangular distribution of tendency to float and the classical first-order model respectively. OBF yielded higher ultimate combustible and ultimate ash recoveries. The flotation rate constants for OBF were higher in all the models except for the fully mixed reactor model. The ultimate recovery values and modified rate constants first increased and then decreased as the size fraction decreased. The trend of the flotation rate constants as a function of the size fraction was similar in all the models except for the fully mixed reactor model. IntroductionFroth flotation is a physical-chemical separation method that is widely used in coal beneficiation for the separation of fine coal particles from associated minerals in water slurries. Since the cumulative recovery of a component in the concentrate is proportional to flotation time, the flotation process can be considered as a time-rate recovery process (Emad, Mohammad, and Bahram, 2010). Therefore, the general mathematical flotation models that incorporate both a recovery and a rate function can describe flotation time recovery profiles.The kinetics of coal flotation, as a measure of coal recovery as a function of time, have been studied in detail by many researchers. Different kinetic models have been proposed and published in the literature. The order and the rate constant are strongly dependent on the flotation conditions, such as the particle size and size distribution, the bubble concentration, the reagent concentrations, and the operating parameters (Zhang et al., 2013). The particle size has been reported to affect the flotation kinetics to a great extent (Yoon, Luttrell, and Asmatulu, 2002; Ntengwe and Witika, 2011). Numerous researchers have studied the aspects of flotation kinetics while paying special attention to particle size (Meftuni and Ibrahim, 1997; Rubinstein and Samygin, 1998; Graeme, 2012). However, the effect of particle size on the flotation kinetics of a low-rank coal has been relatively little discussed."

Jan 1, 2017

By S. Dey, C. Bhar, S. K. Mandal

Loading and hauling of ore and waste are the key operations of an opencast coal mine and entail a high operational cost. The productivity of a mine can be increased by reducing the cycle time of loading equipment as well as utilizing dumpers optimally. In this paper we discuss the impact of rock type, bucket fill factor, rock fragmentation, the height of the cut, and angle of swing of the bucket on shovel performance. A time study is conducted on shovels in an opencast coal mine with experimental blasts of rocks to assess the impact of different factors on the performance of the shovel. Based on the data, the authors applied multiple regression (MR) and artificial neural network (ANN) techniques to develop different models for the prediction of the shovel cycle time. Developed models are validated by comparing the predicted data with actual field data. With the help of the best model, the plausible fleet size is determined in order to utilize the shovel and dumper optimally and to improve the performance of shovel–dumper operation.

Oct 1, 2022

By G. L. Dyer, R. D. Alorro, R. E. Browner

A potential new rare earth extraction process has been suggested (Lazo, et al., 2017) (Lazo, et al., 2018) based on converting the rare earth elements to solid phase rare earth oxalates in an oxalic acid leach. Oxalic acid consumption is a significant issue in the process, therefore to improve the viability of this proposed new extraction method, a process to recover oxalate from the leach solution and recycle oxalic acid is required. A review of the literature and confirmation through thermodynamic analysis of the potential options identified precipitation of calcium or ferrous oxalate as the best potential options. The use of metallic iron to both provide ferrous ions as a precipitant and reduce ferric ions in solution would provide the most economical option, however slow kinetics and unreacted iron created significant issues with this process. The direct use of ferrous ions, while faster and more efficient, produced a precipitate with relatively poor solid/liquid handling characteristics and would require an intermediate stage utilising calcium in regenerating the oxalate. Utilising calcium chloride and oxide created very similar precipitates with better physical properties than the ferrous oxalate and that a reasonable proportion of the oxalate could be recovered before neutralisation of the solution induced precipitation of other phases such as iron oxy-hydroxides and calcium phosphate. The produced calcium oxalate was easily converted to oxalic acid and gypsum via immersion in sulphuric acid. It was also found that there is a significant loss of oxalic acid due to factors other than rare earth oxalate precipitation during leaching. This leads to a maximum oxalate recovery in the range of 50 %.

Jan 1, 2020

By L. Bloch

Most mine safety initiatives in South Africa are doomed to limited success because of one simple fact: they are a-historical and un-cultural and do not deal with the serious ?legacy issues? that still negatively impact on safety, production, and relationships. We in the SA mining industry continually use imported, foreign safety concepts and systems that will not work fully in a South African context. ?The 4th Wave: Culture-Based Behavioural Safety?, as developed by Lance Bloch, an international award-winning clinical psychologist with 12 years? experience in the mining industry - focused mostly on Platinum - is making waves. He has been very successful in creating people-centred, empowered, high-performance safety cultures wherever he has worked. Not only does the 4th Wave transform the corporate culture of a mine, improving safety and production and building an environment of Ubuntu, but it also uses people?s cultures as a means of winning hearts and minds in the battle for safe production. Powerful relationships are built through engagement at all levels, leading to all being focused on the best needs of the company and its constituents as a whole. The programmes are no less than nation-building - something most necessary in the industry, with the pressures from community, unions, the DMR, and politicians. This presentation will describe and discuss the 4th Wave as an advance on previous safety technology and programmes, as particularly relevant to platinum mining in South Africa today.

Jan 1, 2012

By K. J. Craig, M. A. Swart, Q. G. Reynolds, L. Hockaday

A solar reflector soiling study was carried out at a ferromanganese smelter in South Africa to assess the soiling rates at different locations around the plant. Several meteorological parameters were monitored to give insight into the conditions that lead to increased soiling. Mineralogical characterization of dust samples collected from the reflectors and the atmosphere revealed that only a certain size fraction is of importance with regard to soiling, and that the dust can be attributed to both raw materials and smelter products. Proximity to the dust source was the primary driver for increased soiling. The site that experienced the most soiling was very close to raw material heaps; this was deemed an outlier and was excluded from the summary statistics. The secondary driver for increased soiling was location relative to the smelter dust sources and the wind’s direction and speed. The reflector set at the best location experienced 13.1% less soiling than the set at the ‘worst’ (but still feasible) location, represented by an averaged mean daily reflectance loss of 0.0186. The study revealed that while there are periods of intense soiling at this particular site, proper planning of reflector location in relation to the smelter dust sources can significantly mitigate the soiling rate.

Jun 5, 2023

By H. Brüggemann

The exploration of deposits generates geological data which are suitable for creating a preliminary tectonic and stratigraphic model. Linked with the topographical map and analysis data from exploration drillings, this information forms a numeric representation of the deposit. The following example demonstrates an expert system which connects chemical quality requirements and quarrying criteria, and develops a quarrying strategy based on the calculated model. Additional constraining factors like process technology, quarrying methods, landscape protection regulations, etc. are included. The goal is to guarantee a long-term, homogeneous material flow from the quarry at acceptable production costs - even in the case of an extraordinarily inhomogeneous deposit. In order to fulfil this requirement it is necessary to consider a large number of rules, criteria and instructions which can be structured as an expert system and programmed with LISP at a comparably low cost. The chosen strategy is not necessarily final, but can be changed any time by altering or varying the framework of conditions. The output consists of a block-working sequence which best satisfies the set requirements for appropriate points of quarry opening.

Jan 1, 1987

By A. Mabentsela

A furnace freeze lining is necessary for safety and economic reasons in several smelting operations. The integrity of the freeze lining is put at risk by furnace power imbalances. Although numerous models have been derived to model the growth and depletion of the freeze lining due to power imbalances, no model exists for thermomechanical damage to the freeze lining. This study provides an initial pathway for modelling thermomechanical damage to the freeze lining in an ilmenite smelting furnace using information from the literature and experimental work. A methodology under the framework of continuum damage mechanics is proposed to model mechanical damage to the freeze lining due to phase changes, thermophysical changes, and constrained thermal expansion. Drill cores of solidified slag ingots were used to represent the freeze lining. The modified power law proved to be the best predictor of the softening response of the drill cores. Damage driving parameters were extracted from the raw data, and governing equations of the parameters with respect to temperature were derived for use in a finite element method (FEM) code.

Jan 26, 2023

By H. P. Kritzinger, T. C. Kingsley

Rotary kilns are used for a variety of mineral processing operations. Hatch makes use of a kiln model developed from first principles to evaluate designs for its clients. This tool has been applied to a variety of pyrometallurgical applications. This paper illustrates the application of numerical optimization techniques in combination with the kiln model in the interrogation of a generic iron-ore reduction process. The fundamental modelling concepts are explained, followed by a description of the optimization approach. The results show how the combination of the two methods, with modern computing power, can generate a large number of viable design and operating candidates.

Jan 1, 2014

By R. P. King

"A model of the flotation process can be used effectively for design and control. For design purposes it can be used to predict the performance of a large plant from laboratory and pilot plant data. It can be used for control purposes to assess the utility of any proposed operating modification to an existing plant, and it can also be used to determine optimal control settings for best operating performance.A model has been developed that will allow for variations in feed properties and for variations in fineness of grind. The model can be used to assess the effects of reagent addition rate, aeration rate and pulp level on plant performance and these are the control variables that are used individually or together in all operating flotation plants. The model provides for a distribution in the values for flotation rate constants, particle size and mineral fraction, and, because of its complexity, requires a large computer when it is to be applied to a typical plant configuration. The computational method that is used to apply this model to such configurations is described in this paper, and particular attention is paid to the problem of allowing for feedback of tailings from cleaners and recleaners."

Jan 1, 2014

By C. R. Speers

The induced elastic stresses in the sidewalls of gold-mining tunnels at a depth of 4000 m in the Witwatersrand exceed the peak compressive strength of even the best-quality quartzite rocks. Laboratory tests measuring post-yield stress versus strain response show that brittle fracture occurs, followed by a loss in strength associated with strain-softening behaviour. Numerical modeling based on an assumed Mohr-Coulomb criterion fitted to the test results shows that large ongoing deformations of the sidewall occur, leading to total tunnel failure without adequate support. A methodology is presented to enable a quick assessment to be made of support requirements in terms of ground characteristic curves for numerically derived pressure versus displacement. From these curves, estimates can be made of the force levels for cable bolting and of the thickness and strength requirements for shotcrete linings. As an example of its application, the methodology is used in a comparison of the relative stability efficiencies of a square-shaped tunnel and a horizontal ellipse-shaped tunnel.

Jan 1, 1996

By K. Levin, P. Lloyd

During the commissioning phase, which is usually the most exciting part of a project involving the design and construction of metallurgical plant, the commissioning engineers interact between the client and the project management. The client wants to see whether all the equipment that he has bought and that, in his opinion, has taken far too long to erect will actually work. Project management expects the commissioning people to con¬vince the client that this is the best design ever developed and that never before have time and money been spent so well. The commissioning team has to fulfil these expectations. Commissioning work is a `shirt sleeve' function, with little of the glamour that is normally associated with fields such as engineering and operations. The team usually works in a partially completed plant with more temporary than permanent services and little (if any) office accommodation, normal working hours do not apply, and the demands made on the team change suddenly and dramatically. This article outlines the activities of the commissioning group and the systems used to smooth the commissioning path.

Jan 1, 1981

By M. C. van Blerck

Since its introduction in 1956, the capital allowance has been increased and its scope widened. At present the allowance is 10% in respect of two categories of gold mine (post-1973 and other deep level mines) and 6% in respect of natural oil mines. The allowance is a significant incentive encouraging the development of new mines, to the benefit of both the fiscus and the South African economy as a whole. A strong case can be made for increasing the amount and the scope of the allowance. The Margo Report recommendation that the allowance should possibly be replaced with a system of direct grants is, in theory, neutral. However, practical difficulties exist with cash grants and there is concern with the implications elsewhere in the Margo Report that the capital allowance is excessive and that, as a consequence, such direct grants will represent an effective reduction in this incentive. I believe that the best course of action would be the retention (and enhancement) of the capital allowance and the expansion of its scope.

Jan 1, 1988