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By C. Nangolo

Mineral commodity prices comprise one of the key criteria in the selection of mining stocks. We contend that of the three principal elements of mineral commodity prices, spot price, forward price and long-term price, one has a greater impact on the share valuation processes used by investors. This research paper examines the extent to which each of these elements influences the valuation process. The intention is to provide investors in mining stocks with a greater understanding of how fluctuations of commodity prices over time affect the prices of the mining stocks they hold, or intend to sell or buy. Three mineral commodities, gold, silver, and copper, were used as case studies, since market data on these commodities is readily available in the public domain. Nine market indices covering all three mineral commodities were selected. These are based on clearly defined criteria with the intention of eliminating ambiguity and to test for correlation with the three sets of mineral commodity prices. Nine mining companies, which were not the primary drivers of the relevant indices employed in the study, were used to validate the results obtained from the indices in order to avoid duplication of the same correlation during cross-checking. Each commodity price was adjusted for operating costs. For each market index, an average operating cost was calculated from the companies comprising its basket, while each company?s annual operating costs were used for the stocks of the individual companies examined. The data was collected for the period January 2004 to October 2010. This period was further split up into three sub-periods to account for the Global Financial Crisis (GFC) period that started in mid-2008. We conclude that mining stock prices are correlated with mineral commodity prices, but with spot and forward prices exhibiting stronger correlations than long-term price. This finding should be useful for evaluation purposes. Where cash flow methodologies such as discounted cash flow or earnings per share are used to value ordinary shares and commodity prices are required to estimate future cash flows, the findings suggest that spot prices should be used as opposed to long-term prices. The work reported in this paper is part of a current MSc research study at the University of the Witwatersrand.

Jan 1, 2011

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,400. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Members shall be not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R4.00; Annual subscription R14.00 (town), R12.00 (country). Letters of designation: M.S.A.INST.M.M. Associate Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00 (country). Letters of designation: A.M.S.INST.M.M. Affiliates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Affiliate, is at the time of his application, already a Student member, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Affiliates. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00(country). Graduate Members shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the persmission of Council. Entrance fee R1.00; Annual subscription R7.00 (town), R6.00 (country). Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which the attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00 (town), R3.00 (country). Other. The Council has the power to elect to the grade of Member or Associate Member candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed to the Secretary: South African Institute of Mining and Metallurgy, p.a. Box 1183, Johannesburg.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,600. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Fellows shall not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R10.00, Annual subscription R17.00. Letters of designation: F.S.A.I.M.M. Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R8.00, Annual subscription R15.00. Letters of designation: M.S.A.I.M.M. Associates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Associate, is at the time of his application, already a Student, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Associates. Entrance fee R8.00, Annual subscription R15.00. Graduates shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the permission of Council. Entrance fee R2.00, Annual subscription R10.00. Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which they attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00. Other. The Council has the power to elect to the grade of Fellow or Member, candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed on the attached form to the Secretary, South African Institute of Mining and Metallurgy, P.O. Box 61019, Marshalltown, Transvaal.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,400. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Members shall be not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R4.00; Annual subscription R14.00 (town), R12.00 (country). Letters of designation: M.S.A.INST.M.M. Associate Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00(country). Letters of designation: A.M.S.INST.M.M. Affiliates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Affiliate, is at the time of his application, already a Student member, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Affiliates. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00(country). Graduate Members shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the permission of Council. Entrance fee R1.00; Annual subscription R7.00 (town), R6.00 (country). Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which they attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00 (town), R3.00 (country). Other. The Council has the power to elect to the grade of Member or Associate Member candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed to the Secretary: South African Institute of Mining and Metallurgy, P.D. Box 1183, Johannesburg.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,400. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Members shall be not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R4.00; Annual subscription R14.00 (town), R12.00 (country). Letters of designation: M.S.A.lNST.M.M. Associate Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00(country). Letters of designation: A.M.S.INST.M.M. Affiliates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Affiliate, is at the time of his application, already a Student member, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Affiliates. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00(country). Graduate Members shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the persmission of Council. Entrance fee R1.00; Annual subscription R7.00 (town), R6.00 (country). Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which the attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00 (town), R3.00 (country). Other. The Council has the power to elect to the grade of Member or Associate Member candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed to the Secretary: South African Institute of Mining and Metallurgy, P.O. Box 1183, Johannesburg.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,600. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Fellows shall not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee RI0.00, Annual subscription RI7.00. Letters of designation: F.S.A.I.M.M. Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R8.00, Annual subscription RI5.00. Letters of designation: M.S.A.I.M.M. Associates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Associate, is at the time of his application, already a Student, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Associates. Entrance fee R8.00, Annual subscription RI5.00. Graduates shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the permission of Council. Entrance fee R2.00, Annual subscription R10.00. Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which they attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00. Other. The Council has the power to elect to the grade of Fellow or Member, candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed on the attached form to the Secretary, South African Institute of Mining and Metallurgy, P.O. Box 61019, Marshalltown, Transvaal.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1 600. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Fellows shall not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R10,00, Annual subscription R20,00. Letters of designation: F.S.A.I.M.M. Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R8,00, Annual subscription R18,00. Letters of designation: M.S.A.I.M.M. Associates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Associate, is at the time of his application, already a Student, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Associates. Entrance fee R8,00, Annual subscription R18,00. Graduates shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the permission of Council. Entrance fee R2,00, Annual subscription R12,00. Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Councils to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which they attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R5,00. Other. The Council has the power to elect to the grade of Fellow or Member, candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application form should be addressed on the attached form to the Secretaries South African Institute of Mining and Metallurgy, P.O. Box 61019, Marshalltown, Transvaal.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,400. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Members shall be not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R4.00; Annual subscription R14.00 (town), R12.00 (country). Letters of designation: M.S.A.INST.M.M. Associate Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00 (country). Letters of designation: A.M.S.INST.M.M. Affiliates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Affiliate, is at the time of his application, already a Student member, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Affiliates. Entrance fee R2.00; Annual subscription R12.00 (town), R10.00(country). Graduate Members shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the persmission of Council. Entrance fee Rl.00; Annual subscription R7.00 (town), R6.00 (country). Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which the attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00 (town), R3.00 (country). Other. The Council has the power to elect to the grade of Member or Associate Member candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed to the Secretary: South African Institute of Mining and Metallurgy, P.D. Box 1183, Johannesburg.

The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. The objects of the Institute are to advance the science and practice of mining and metallurgy, to afford opportunities for the interchange and recording of knowledge of mining and metallurgy and to ensure high standards of professional conduct and competence. Membership benefits include monthly issues of the Journal of the Institute, monthly General Meetings at which papers are read, symposia, excursions to mining and industrial concerns and the use of club facilities at Kelvin House. Technical journals received on an exchange basis are available to members at the Johannesburg Public Library. The current membership of the Institute is over 1,600. Membership applications are accepted from suitably qualified persons and the requirements for entrance to the various grades of membership are summarised below. Fellows shall not be less than 30 years of age, shall be university graduates in pure or applied science or shall produce evidence to the satisfaction of the Council that they have successfully completed a co-ordinated course of study in pure or applied science of at least three years' duration at an approved university or institution deemed by the Council to be of equivalent status. Members shall have been employed in senior technical positions in important mining or metallurgical undertakings for at least five years or they shall have practised as mining or metallurgical consultants for at least five years. They shall be practising their profession at the time of application. Entrance fee R10.00, Annual subscription RI7.00. Letters of designation: F.S.A.I.M.M. Members shall be not less than 25 years of age and shall be university graduates in pure or applied science, or shall have successfully completed co-ordinated courses of study in pure or applied science of at least three years' duration. They shall have been engaged in work of an approved technical character in the mining or metallurgical industries, of which not less than two years shall have been in positions of responsibility. A candidate shall be practising his profession at the time of his application. Entrance fee R8.00, Annual subscription RI5.00. Letters of designation: M.S.A.I.M.M. Associates shall be not less than twenty-five years of age, and shall have been engaged in positions of responsibility in, or associated with, the mining or metallurgical industries for periods of not less than three years. If, however, the candidate for admission to the higher grade of Associate, is at the time of his application, already a Student, he need satisfy the Council only that he is, at the time of his application, engaged in a position of responsibility in or associated with the mining or metallurgical industries. In all cases the applicants shall satisfy the Council that they are fit and proper persons to become Associates. Entrance fee R8.00, Annual subscription R15.00. Graduates shall be not less than 21 years of age and shall be university graduates in pure or applied science, or have completed co-ordinated courses of study in pure or applied science of at least three years' duration at an approved university or institution. They shall not remain Graduate members after attaining the age of 30 years without the permission of Council. Entrance fee R2.00, Annual subscription R10.00. Students shall be persons not less than 18 years of age who are being educated or trained in a manner approved by the Council, to occupy a technical position in or associated with the mining or metallurgical industries and who, furthermore, shall not have attained the qualification required for a higher grade of membership. They may remain Students until they have obtained the necessary qualifications for transfer to a higher grade of membership, but not after the end of the Institute's financial year in which they attain the age of 28 (twenty-eight) years. They shall then transfer to a higher grade to retain membership of the Institute. The Council may relax the provisions of this clause in such cases as it considers appropriate. Entrance fee nil; Annual subscription R3.00. Other. The Council has the power to elect to the grade of Fellow or Member, candidates who may not fulfil all the requirements for entrance to these grades but whose status, professional achievements and practical experience in mining or metallurgy justify such election. Applications. Requests for membership application forms should be addressed on the attached form to the Secretary, South African Institute of Mining and Metallurgy, P.O. Box 61019, Marshalltown, Transvaal.

By L. A. Vermeulen, D. D. Howat

A study was made of the performance of a rod mil operating without liter bars and with different arrangements of liter bars in the lining. . The results show that striking improvements in performance, increased throughput, and reduced consumption of liner metal and electrical energy can be obtained by a change in the geometry of the liter-bar arrangements within a mil. Rod mils of equal size fitted with the same arrangement of liter bars but operating at different speeds presented apparent anomalies in the relative consumption efficiency of electrical energy for the production of material smaller than 75 µ m. Marked savings in the consumption of liner metal were achieved by the use of an arrangement of alternating lines of higher and lower liter bars. A study of the relative performances of two large tube mils showed that the use of liter bars in one of the mils resulted in a marked reduction in the consumption of liner metal and electrical energy per ton of material smaller than 75 µ m in the product.

Jan 1, 1986

By A. G. R. Coreejes, G. Ferreira

The paper sets out briefly the methods used for the planning and control of the construction work at Grootegeluk Coal Mine near EIIisras, Transvaal. It includes a discussion of the programming, the updating of programmes, and the progress reporting.

Jan 1, 1982

Council and Standing Committees - 1981/82 President: G. Y. Nisbet. Senior Vice-President: Prof. A. N. Brown. Junior Vice-President: Prof. R. P. King. Honorary Treasurer: Prof. D. G. Krige. Immediate Past President: Dr P. R. Joehens. Members of Council: B. C. Alberts, J. D. Austin, P. T. Fewell, C. E. Fivaz, J. J. Geldenhuys, Dr A. K. Haines, P. N. Harris, H. E. James, C. G. Knobbs, Dr B. K. Love¬day, Dr J. Lurie, C. S. MacPhail, D. G. Malan, J. C. Mostert, G. C. Thompson, Dr H. Wagner. Chairman, Witbank/Middelburg Branch: B. Rohrmann. Chairman, Orange Free State/Klerksdorp Branch: K. F. W. Eick. Chairman, Materials Engineering Specialist Division: G. Pienaar. Past Presidents serving on Council: Dr M. G. Atmore, H. Britten, Prof. D. D. Howat, Dr J. P. Hugo, D. G. Maxwell, Prof. R. P. Plewman, Dr R. E. Robinson, Prof. M. D. G. Salamon, P. W. J. van Rensburg, D. A. Viljoen, P. A. von Wielligh. Standing Committee Chairmen: Constitution, Rules and Policy, Dr P. R. Jochens; Membership, Prof. R. P. King; Training, Career Guidance and Education, P. A. von Wielligh; Journal, Prof. A. N. Brown; Monograph Series, D. G. Malan; Technical Programme - Metallurgy, C. E. Fivaz; Technical Programme - Mining, P. N. Harris; SAIMM Schools - Metallurgy, Dr B. K. Loveday; SAIMM Schools - Mining, J. D. Austin; 1982 CMMI Congress, Dr M. G. Atmore; Awards, Dr P. R. Jochens; Adjudication, Dr P. R. Joehens; Phoenix National Committee, Dr M. G. Atmore; Excursions, J. C. Mostert; Mines and Works, Prof. A. N. Brown; World Mining Congress - National Committee, Prof. R. P. Plewman.

Jan 1, 1982

By A. Cáceres, L. Navarro, N. Altmann, R. Betinol

Copper concentrate is produced in Chile in the high Andes and transported to the coast for shipping through long distance pipelines. The pipeline and fittings installed have to withstand the high abrasion and corrosion environment of the copper concentrate. To protect the inside tube wall against corrosion, high density polyethylene (HDPE) liner is used. While HDPE liners can protect the steel wall against corrosion, it has also been assumed that the low surface roughness of the HDPE liner also inhibited incrustation caused by calcium carbonate and sulphate deposition. Recent events have indicated otherwise in a couple of concentrate pipelines for which BRASS has provided consultant service. This paper delivers a case study which includes (i) formation of incrustation and adhesion to HDPE liner, (ii) the detection of the incrustation through hydraulic analysis, (iii) the mechanism of removal of incrustation, and (iv) the catastrophic effects of their presence in an emergency situation.

Jan 1, 2007

By J. H. Viljoen, N. B. Strydom, J. S. Greyson, C. H. Van Graan

SYNOPSIS Bad eyesight and poor illumination can contribute to the occurrence of accidents in mines. As one part of a study of this problem, surveys of light intensities have been conducted in 19 gold mines. On 17 of the mines the surveys were on one underground level only, whilst in two of the mines more intensive surveys were conducted by measuring light intensities in all areas to determine any inter-mine variations between the levels of illumination. Readings of light intensity were taken underground at stations, tips, winches, stopes, conveyor belts, waiting places, pump stations, fitters' and boilermakers' workshops, ambulance rooms and in haulages. It is concluded that the average levels of illumination in South African gold mines are comparable with those reported in the literature for mines elsewhere. Standardisation of lighting conditions underground could eliminate inter- and intra-mine variation in illumination levels where they occur. A guide to mine illumination practice would assist such standardisation, and help increase the levels and effectiveness of illumination in mines. Some suggestions are made in this latter connection.

By T. G. Maepa

"The creation of mine excavations alters the stress distribution in the surrounding rock mass. In modern mining, resin-grouted rockbolts are used as a means of support in order to redistribute stresses and reestablish equilibrium in the rock mass. The success of resin-grouted rockbolting depends on the design of the system and the correct installation of the support units.The support design and rockbolt installation procedure at a platinum mine in the Bushveld Complex were investigated. A number of issues that resulted in poor installation were identified, including resin admixture, incorrect length and orientation of support holes, over- or under-spinning of the resin, and incorrect rockbolt tensioning. The support design used at the mine was reviewed and its limitations identified. A number of recommendations were made for optimizing the support design by reducing the diameter of the drill bit and reducing the length of the support holes. These changes will enable the mine to use different combinations of resin capsules. Implementation of the proposed changes will lead to a significant reduction in the cost of installation per support hole, as well as improve productivity and safety.IntroductionThe creation of any mine excavation disturbs the virgin state of stress in the Earth’s crust. This results in stress concentrations that interfere with the stability of the rock mass surrounding the excavation. It is essential to modify the internal behaviour of the rock mass surrounding excavations in order to reinforce the ground and stabilize excavations. Resin-grouted rockbolts are extensively used for this purpose. Esterhuizen (2014) stated that when effectively installed, the rockbolt exerts a clamping force and a bonding strength that keeps the rock mass together. This increases the cohesive strength of all discontinuities in the rock mass and enhances the stability of the excavation. Poorly designed and installed ground support is ineffective and constitutes a safety hazard. It is therefore crucial for every mine to ensure that any form of ground support is designed and installed correctly. This research evaluates the installation of resign-grouted rockbolts and identifies challenges and solutions for improved safety as observed at an operating hard rock mine. The support design used at the mine was reviewed and the design parameters optimized. The outcomes will enhance the efficiency of support and minimize the costs associated with the installation of resingrouted rockbolts."

Jan 1, 2017

By M. R. Grant, G. S. Kruger, H. D. van der Merwe, T. N. Huffman

Sixteenth to seventeenth century Kalanga miners dug a series of sub-vertical shafts into a 10 to 30 m wide zone of copper ore at the Thakadu Mine near Matsitama, Botswana. They went down at least 6 m in search of thick malachite veins. The host rock was hand 'cobbed' to remove the veins, which were then smelted nearby in small bowl furnaces. Evidently, the furnaces lacked clay superstructures, since a simple pit was sufficient to smelt the almost pure malachite. The copper bloom was probably refined in villages further away.

Jan 1, 1995

To be held from the 9th to 14th April, 1972, in Johannesburg, South Africa. GENERAL INFORMATION The first symposium in the series was staged by the University of Arizona in 1961. Since then Stanford University, Colorado School of Mines, Pennsylvania State University and the Society of Mining Engineers of the American Institute of Mining, Metallurgical and Petroleum Engineers have acted together with the University of Arizona as co-sponsors of the series. The 9th Symposium in 1970 was sponsored by the Canadian Institute of Mining and Metallurgy together with McGill University and Ecole Poly technique in Montreal. The 10th Symposium, the first to be held outside the North American continent, is being organised by the South African Institute of Mining and Metallurgy (with the Council for Scientific and Industrial Research and the South African Council for Automation and Computation) in close collaboration with the previous co-sponsors. OBJECTIVES Mineral ventures increase in scale and complexity. The planning and control of these projects requires more and more sophisticated techniques. The intention of the symposium is to pool and exchange experience and knowledge and also to discuss new and potential developments. The papers presented in the main sessions, which will extend over one week, will together indicate progress which has been made in the successful application of operations research, mathematical, statistical and computer methods in each of the various aspects of operation in the mineral industry. A coherent account will be developed by consideration, in consecutive sessions, of the stages through which mineral prospects evolve in the course of their life. Primary aims are thus to stimulate discussion in depth of previous applications, to highlight current trends and to provide guidelines for future developments. PARTICIPATION The intention is to bring together persons responsible for managing the various operations in the mineral industry and the workers engaged in the development of mathematical and computer methods relevant thereto. SYMPOSIUM TOPICS 1. Market Analysis-demand and supply trends, models of mineral markets, price prediction. 2. Exploration and ore reserve estimation--exploration strategies, choice of drilling and sampling patterns, quantification of geological information, geo-statistical analysis, ore reserve assessment. Storage and retrieval of associated data. 3. Project design and analysis-influence on viability and risk of capitalisation, scale and method of operation, processing, uncertainties in design premises. 4. Planning of operation-planning and scheduling of construction, of development and of depletion of ore reserves. Logistics, rock mechanics and ventilation. 5. Control of operations-financial, production, cost and quality control as applied to both mining and processing. Flow and processing of relevant information. CALL FOR PAPERS An invitation is extended to intending authors to submit a synopsis, in 200 to 300 words, of papers which would develop the themes outlined above. The Programme Sub-Committee will choose, on the basis of these synopses, some 20 to 30 authors who will be invited to submit papers. Selection will be aimed at the provision of a coherent structure. Other authors may be invited to submit short papers either as contributions to the primary papers or for brief discussion in ancillary sessions which will be scheduled to follow on the main sessions. The official language of the symposium will be English. DEADLINES Prospective authors must submit synopses of papers by ............end April, 1971 Authors will be informed of results of selection of papers by . . . . . . . end June, 1971 Manuscripts will have to be in the hands of the Editors by . . . . . . . . . end October, 1971 PRE-PRINTS Papers selected for presentation in the main sessions will all be pre-printed and distributed prior to the symposium. As many as possible of the shorter papers and prepared contributions will also be pre-printed. PROCEEDINGS All of the main and ancillary papers together with edited discussion will be published shortly after the symposium in a single volume. TOURS AND VISITS A choice of visits to relevant local undertakings on a day during the course of the symposium will be available to participants. These will include a deep level gold mine. A tour which will include mineral projects of interest and the Kruger National Game Park will be arranged in the week following the symposium. LADIES' PROGRAMME Arrangements will be made for the reception and entertainment of ladies. ACCOMMODATION Accommodation will be available at hotels convenient to the symposium venue. The cost of reasonable hotel accommodation in Johannesburg is in the range R5 to RIO (7 to 14 U.S. dollars) per person per night. All reservations and associated arrangements may be made through agents to be appointed by the organisers in due course. FEES AND COSTS Symposium fees will not exceed R70 (100 U.S. dollars). These will include registration, one copy of the published proceedings, a set of pre-prints of the main papers, teas and lunches during the course of the symposium, and the various official social events as well as the mid-week visits. Accommodation, travel and post-symposium tour charges are not included in this figure. FURTHER INFORMATION All communications should be addressed to: The Secretary, South African Institute of Mining and Metallurgy, Kelvin House, Hollard Street, Johannesburg, South Africa.

1. Book reviews Perspectives in metallurgical development. London, The Metals Society. 338 pp. £29. Reviewer: John V. Bee Mechanics of oil shale, edited by K.P. Chong and J.W. Smith. London, Elsevier Applied Science Publishers Ltd, 1984. 603 pp. £75. Reviewer: R.W.O. Kersten 2. Recent publications CANADIAN MINERAL POLICY SECTOR. Metallurgical works in Canada. Primary iron and steel 1984. Mineral Bulletin MR 203. Ottawa, Canadian Government Publishing Centre, Supply and Services, 1985. $6.00. Tin and its uses no. 143. Greenford (England), International Tin Research Institute, 1985. Mining 1985, edited by Diana Russell. Harlow England), Longman Group Ltd, 1985. 540 pp. £46. The following books are available from CRC Press, Inc., 2000 Corporate Boulevard N.W., Boca Raton, Florida 33431, U.S.A. Inorganic ion exchange materials, edited by A. Clearfield. 304 pp. $100. Polyurethane foam sorbents in separation science, by T. Braun. $80. Advanced particulate morphology: theory and practice, by J.K. Beddow and T.P. Melloy. 208 pp. $79. CRC handbook of atomic absorption analysis, edited by A. Varma. 2 vols: vol. I $114, vol 11 $102. CRC handbooks of inorganic elecrochemistry, edited byL. Meites, P. Zuman, E.B. Rupp, andA. Narayanan. 3. Mintek reports Report M169 The preparation of three South African coals for as reference materials. Report M190 The preparation and certification of a South African phosphate concentrate for use as a reference material. Report M191 The agglomeration of fine material for bacterial heap leaching. Report M197 A computer programme to monitor the performance of an X-ray-fluorescence spectrometer. Metallurgical award The 1984 Acta Metallurgica Gold Medal has been awarded to Professor John W. Christian of Oxford University. The medal is an international award that was established in 1974 to recognize outstanding ability and leadership in materials research. Proterozoic volcanic suites An international symposium will be held at the British Geological Survey, Keyworth, Nottingham, U.K., from 2nd to 5th April, 1986. Entitled 'Geochemistry and Mineralisation of Proterozoic Volcanic Suites', this special meeting of the Geological Society will discuss the geochemical evidence for the nature of volcanism during the Proterozoic. Powder metallurgy Every second year the International Powder Metallurgy Conference, the world's leading event in powder metallurgy, is organized and held alternately in North America and Eruope.

Jan 1, 1985

P.W.D. ROSTER OF CONSULTING ENGINEERS (Extract from a letter from the Secretary for Public Works) In recent years a large number of professional engineers has entered the consulting field. Although the names of most of these have been placed on the Department's roster of consulting engineers either as a result of representations made by the South African Association of Consulting Engineers or by applying direct to the Department there are still some who seem to think that canvassing through an influential person is necessary to obtain commissions from the Department. The Department's roster is open to all registered professional engineers who are suitably experienced to undertake consulting work and commissions are awarded strictly on merit. I shall appreciate it, therefore, if registered professional engineers who wish to be considered for commissions by the Department could be advised that they must apply, in the first instance, to be placed on the Department's roster. On receipt of such an application a questionnaire listing all the information required by the Department will be forwarded to the applicants for completion and returning to the Department for record purposes. All names which appear on the roster are taken into account when a commission has to be awarded, due consideration being given to factors such as geographical position, seniority, capability and compatibility. AMERICAN SOCIETY OF MINING ENGINEERS 1970 FALL MEETING AND EXHIBIT The Secretary for Commerce has passed to us a letter received from the American Society of Mining Engineers, reading as follows: "We would be delighted to have South Africa attend our meeting next year and to exhibit some of their mining equipment in our Technological Information Exchange. The 1970 SME Fall Meeting and Exhibit will be held in St. Louis, Mo., October 21-23, 1970, at the Kiel Auditorium. The AIME WorId Conference on Lead & Zinc Mining and Metallurgy will be an integral part of our meeting-and an added incentive to attend. It should be understood that we discourage the showing of actual mining equipment and encourage the manufacturers and suppliers to send their engineers to man the booths. We hope that the exhibits will endeavour to put across their story by means of photographs, drawings, models and literature, rather than by display of prototypes of the actual equipment. We will be happy to welcome manufacturerers from South Africa as well as the mining engineers who, from time to time, have registered at our meetings." For further particulars, interested parties may write to the Society of Mining Engineers, 345 East 47th Street, New York, N.Y. 10077, D.S.A.

By D. D. Howat

In the field of high temperature smelting processes there have been two dramatic changes in the past twenty years. These are, first, the application of tonnage oxygen for direct injection for the refining of molten iron and other metals and to provide the means of enriching air used for the combustion of fuel. Second, the application of electric power for the generation of high temperatures in place of the combustion of fossil fuels. Of these two developments the application of tonnage oxygen for the refining of molten iron has virtually revolutionised the steel industry throughout the world. The magnitude of this development is exemplified by the fact that less than 5 per cent of the world's steel production in 1960 was made by this process or 16 million tons out of a total of 350 million tons of steel produced, while in 1970 over 40 per cent of the world steel production was made by this process, ie, 251 million tons out of 628 million tons total. In the same period the proportion of steel produced by the old-established open-hearth process has shrunk from 75 per cent to 38 per cent. In the whole history of the development of high temperature metallurgical smelting processes there has never been anything remotely approaching this. The other development, the application of electric power for the generation of high temperatures has not had the impact of the oxygen injection process but I believe that what we should call the electric smelting revolution in metallurgical processes has very far-reaching ramifications for steel production and other pyrometallurgical processes. This may seem a bold and brash statement but it must be remembered that the oxygen injection process constitutes a link in the chain critically dependent upon the production of vast tonnages of molten iron from very large modern blast furnaces. The Achilles heel of this chain of processes, upon which such a large percentage of the world's supply of steel depends, is the availability of metallurgical coke in turn dependent on natural resources of coking coal. Without any exception each industrial country in the world faces a shortage of resources of coking coal and in some cases a critical shortage. Certainly within the present century the major iron and steel producing countries of the world will face this critical shortage of coking coal and major modifications to steel making processes will become inevitable. W. F. Cartwright (Deputy Chairman of B.S.C) said recently that there are considerable doubts as to whether the world will be able to provide enough coking coal to meet world steel demands from the late 1970's onwards if the B.F.remains the main means for making iron from ore. This is one of the supreme ironies of the world metallurgical situation to-day when the technology of iron and steel production has reached an extremely high peak of technical efficiency. The newest modern iron blast furnace capable of producing 6 000 to 8 000 tons per day of molten iron represents probably the most efficient piece of high temperature metallurgical plant and operation known to man. The conversion of this molten iron into steel by the oxygen injection process has made available to the engineering industry steel of a quality and at a price which is quite remarkable. Yet this vast metallurgical pyramid rests on the completely insecure and uncertain foundation of inadequate world resources of coking coal. The shortage of reserves of coking coal in this country is acute and it is possible that these resources will be exhausted within the next twenty years. Yet unless some completely unexpected catastrophe occurs the demand for steel in this country will probably rise at a faster rate than in the Western world due to the expansion of the Bantu population and the increased standard of living. To offset the inevitable shortage of coking coal are our much greater resources of bituminous coal which although of low grade provide a suitable fuel for electric power generation. The geographical disposition of the coal fields in relation to the great industrial areas of the Transvaal makes it inevitable that the development of the pyrometallurgical industries must depend heavily on electric power. The position in this country with regard to electrical power generation and consumption is rather anomalous. Per capita consumption of electric power is high - in 1964 almost twice the world average of 870 KWH and twenty-five times the average of 34 KWH for the Continent of Africa. In 1964 fifty-four per cent of the total world electric power was used in industry - the ratio being approximately 1/9 mining to manufacturing uses. As shown in Table I in 1969 67.2 per cent of the total output of electric power from ESCOM was used for mining and other industrial uses but almost in the ratio 6/4 mining to industrial uses. These figures emphasise the enormous importance of the mining industry to the economy of this country and underline the major contribution made by the gold mining industry. What is of very significant importance is that although the mining industry remains by far the largest single consumer of electrical power the consumption of power for industrial uses is rising rapidly as shown in Table II.