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By R. Tinsley

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each project's feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

Acid heap leaching has been extensively applied to the processing of copper oxide ores, with recovery of copper by solvent extraction and electrowinning. Heap leaching has also been extended to the treatment of secondary sulphide copper ores, where oxidative conditions are generated in aerated heaps by the bacterially-assisted oxidation of ferrous iron to ferric iron. The treatment of low-grade chalcopyrite ores has recently been the focus of research, with Mintek playing a prominent role. When processing chalcopyrite ores, more complex column test work is performed, which incorporates the prediction and simulation of temperature behaviour in pyrite-containing heaps. Mintek has devised a trade-marked column leaching apparatus (SmartColumn?) for the simulation of the natural temperature profile development in pyrite-containing heaps. As heap leach applications are becoming more complex, the parameters that need to be built into the design and operation of heap leach plants are growing in number, and the amount of data to be collected and processed, and the number of decisions to be taken daily, are also increasing. Mintek has therefore developed the HeapStar® administrative advisory software, as a guidance system to ensure that the correct protocols are implemented at various stages of the leach cycle.

Jan 1, 2012

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

Extensive work was done previously on the wear of grinding media and on the comminution processes operative in bal milling based on the determination of the number-size and mass-size distributions of samples of balls taken from bal mils by a specially designed device. Proof that a sample is as nearly representative as possible of the whole mass of material from which it is drawn is usually extremely difficult. This paper reports a special case in which a direct comparison was made between the number-size and mass-size distributions obtained from a sample drawn from a mil and those from the whole bal charge emptied from the mil. Exposure of the internal defects of the grinding balls caused them to develop irregular shapes after wear had reduced their diameters by about 50 per cent. As a result of the marked change in the morphology of the grinding components, an anomaly was observed between the proportion of small components collected by the sampler and that determined in the total charge. Except for this anomaly, a marked similarity was found in the data relating to the larger components in the sample and the total charge, indicating that the sample obtained by the procedure outlined is representative of the mass of the grinding charge in a mill.

Jan 1, 1989

The Annual General Meeting of the South African Institute of Mining and Metallurgy was held in Kelvin House, Johannesburg, on Wednesday, 19th August, 1981. Dr P. R. Jochens (President) was in the chair and declared the meeting open at 4.05 p.m. This account of the proceedings includes only those matters that are not reported under the heading `Annual report and accounts' elsewhere in this issue. Confirmation of the Minutes The minutes of the last Annual General Meeting, which was held on 27th August, 1980, were confirmed as pub¬lished in the September issue of the Journal. Welcome President: I extend a sincere welcome to you all, especially to the following distinguished guests: Mr L. W. P. van den Bosch, President of the Chamber of Mines, and Mrs van den Bosch; Mr J. G. Kirchner, Government Mining Engineer, and Mrs Kirchner; Dr William Ble¬loch; Dr L. Alberts, President of the National Institute for Metallurgy, and Mrs Alberts; Dr C. F. Habis, Presi¬dent of the CSIR, and Mrs Habis; Dr P. J. Hugo, Chief Director of the Minerals Bureau, and Mrs Hugo; Mr D. N. Stuart, General Manager of the Chamber of Mines, and Mrs. Stuart; the Presidents and representatives of other Institutes and their wives; and Honorary Life Fellows of our Institute and their wives.

Jan 1, 1981

By M. H. Moys

The capacity of grinding mills can be maximized by use of measurements of mill power and bearing pressures. The criterion is as follows. If the derivatives with respect to time of the power and bearing pressure signals have the same sign, the volume of the mill load is smaller than the optimum value; if they have different signs, the volume of the mill load is greater than the optimum value. Few attempts have been made to use measurements of bearing pressure in the estimation of absolute values for the parameters that define the state of the mill load (e.g, mass, volume, and dynamic angle of repose) because the bearing-pressure signal is a complex function of these and other parameters. This paper gives a mathematical model that relates bearing pressures to these parameters. The theoretical values obtained from this model are compared with experimental values, and it is concluded that the model constitutes a good description of experimental reality. If accurate measurements of the load supported by each bearing are available, the model can be used in the estimation of the mass of the load in the mill. If independent estimates of the volume of the load or the dynamic angle of repose are available, the other parameter can be estimated from measurements of the bearing loads.

Jan 1, 1980

By M. S. Janssen, J. L. Taylor, M. A. Ford, E. B. Viljoen, H. A. Simonsen

The Stilfontein and Buffelsfontein Gold Mines, near Klerksdorp in the Transvaal, had accumulated a large amount of uranium-containing residue and, when the price of uranium rose in the 1970s, consideration was given to the possible recovery of this uranium. Preliminary tests showed that concentration of the uranium prior to leaching would not be economic. However, the pyrite in the residue could be concentrated by flotation, and the flotation concentrate could be roasted to pro¬vide both enough acid for leaching the uranium and a calcine from which the gold could be recovered. The feasibility study showed that a uranium operation of 270 kt per month would be most economically attrac¬tive, and a plant of that size was accordingly designed and built. In the first six years of its existence, the plant treated over 20 Mt of residue and produced about 3,5 kt of uranium oxide. During that time, the plant was con¬tinually being improved to make it more reliable and cost-efficient. This paper analyses the operation of the plant during its first six years from the viewpoints of its mechanical, process, and economic performance. The criteria on which the selection of the process was based are reviewed and compared with the actual performance of the plant, emphasis being placed on the leaching, solid-liquid separation, recovery, and purification stages.

Jan 1, 1987

By Alastair S. Macfarlane

The Mineral Resource that a mining company has access to, represents the majority of the embedded value that exists within the company, as well as the competitive advantage that the company has over its peers. However the real value is only realised once effective mining plans have been put in place, which optimise the extraction of the Resource, and add measurable value to the Company. The concept of Mineral Resource Management has been developed in South Africa, to ensure this optimisation happens in an integrated and quantifiable manner, such that value is added and risk is reduced, resulting in bottom line improvement for the stakeholders of the business. This paper describes the process of Mineral Resource Management, and draws on successes and failures of various companies, to illustrate how it should be implemented, and what measures should be put in place to ensure its success. This requires a fundamental re-appraisal of the way in which mining companies plan and execute their businesses, and focuses attention on real value adding activities and behaviour through the use of Economic Value Added as an appropriate metric by which to measure real value and risk. Specifically, the paper focuses on these aspects as applied to planning models and processes, exploration activity and risk management, to ensure operational and project success.

Jan 1, 2007

By J. Zwartendyk, A. Azis

"Every nation must decide how it should exploit its mineral resources so as to contribute most to its national objectives. It is argued that the present value of the future corporate income tax flow derived from mineral exploitation may serve as a useful indicator in moving toward a taxation policy that would contribute optimally toward the greatest public benefit.The future stream of corporate income taxes depends largely on the mineral endowment, consisting of deposits now being mined, known unmined deposits, and unknown deposits.Unknown deposits may be estimated by geological inference. Both known and unknown deposits can be categorized according to grade and size, and divided into economic and uneconomic deposits on the basis of certain prices, costs, rate of return and taxation levels.Computer simulations can be run of discounted cash flow models at various taxation levels to show the impact of taxation changes on future tax revenues."

Jan 1, 2014

British Mining Fields, by J. E. Metcalf. Published by the Institution of Mining and Metallurgy, London, 1969. Price 50s. (Students, 30s.). A 100 years or so ago Britain's mining industry led the world in the production of coal and base metals. Although she still maintains a sizeable-and, under the circumstances, remarkably progressive-coal mining industry, her production of most other base minerals has long since been dwarfed by mining fields in the Americas Africa, Australia and the U.S.S.R. Nevertheless the story of mining in Britain is of wider interest than the present scale of operations there might suggest, if only because the domestic British mining industry has in terms of finance, technology and manpower been the fons et origo of many highly productive mining fields outside Britain, including the Witwatersrand goldfields. British Mining Fields was published by the Institute of Mining and Metallurgy to give delegates attending the Ninth Commonwealth Mining and Metallurgical Conference a succinct account of mining in Britain. The main emphasis is on underground mining of base minerals-treated regionally-with separate chapters on coal and gypsum. The author strikes an admirable balance between historical aspects, geological origin and environment of ore deposits, mining methods and economic factors, and provides a few key references for those who wish to make deeper studies. This is exactly the sort of booklet one often wishes were available on South African mining.

By Wm. Bleloch

SYNOPSIS The feasibility of rejection of nitrogen from stack gas by recycling of top-gas with cold-blast 95 to 98 per cent oxygen is assessed. It is concluded that nitrogen could be removed to a level below 3 per cent of the stack-gas using recycled cleaned cold top-gas and 95 to 98 per cent oxygen produced by a single-column air separation plant with liquid-air reflux instead of liquid nigroten reflux. The partial pressure of carbon monoxide in the stack-gas could be doubled without top pressure and the deposition of carbon and reduction of iron oxides by the stack gas could be markedly increased. It is concluded that rate of stock descent could be doubled compared with present-day practice and an iron make of 4400 kg/m 2 of hearth area/hour may be attainable with a working volume of 129 m2/m hearth diameter by this method. Oxygen consumption is estimated at possibly 280 m2 (0.4 t)/t iron made and carbon consumption at possibly 280 kg/t iron. Power consumption for oxygen including auxiliaries is estimated at 304 kWH/t 100 per cent oxygen as 95 to 98 per cent gas. The air separation cycle due to Schuftan is discussed in some detail, and the components of a 1 600 metric ton/day separation plant are briefly discussed. The paper is a theoretical essay.

By R. Hoare

TSG Consulting works with many of the major global mining companies using simulation modelling as an integral component in their development team's processes to determine which combination of infrastructure options, operating performance and operating rules best achieve project goals. All systems can be divided into a series of subprocesses. Conventional management and design practices focus on the optimisation of these system components. However, the interaction between subprocesses means that improvements made to the individual components do not necessarily translate into total system performance improvement. TSG Consulting advocates a `total integrated system approach' to understanding the behaviour and performance of complex interacting systems. In a constraint-based integrated set of processes, the instantaneous system capacity is limited by the subsystem component capacity that is the bottleneck at that point in time. Additionally, real world stochastic and dynamic influences tend to have knock-on effects across subsystem boundaries. This necessitates the requirement for simulation modelling to develop and validate solutions that are sufficiently robust to deliver sustainable outcomes. The key to maximising production is to understand the causes and effects the inherent variability has on component performance, subprocess performance and most importantly, the total integrated system performance. The correct use of simulation modelling techniques allows study teams to evaluate the relative merits of different capacity enhancement proposals. Put simply, when done well, simulation modelling provides a quantitative and rational process to enhance the knowledge and insight needed to make informed decisions.

Jan 1, 2007

By J. P. Beukes

The production of ferrochrome alloy from chromium bearing chromite ores is conducted at high temperature under highly reducing conditions. However, albeit completely unintended, it is impossible to completely exclude oxygen from all high temperature process steps, with the corresponding possibility arising for the generation of small amounts of Cr(VI) species. Certain Cr(VI) species are regarded as a carcinogenic, with specifically airborne exposure to these Cr(VI) species being associated with cancer of the respiratory system. With approximately three-quarters of the world?s viable chromite ore reserves located in South Africa, and annual ferrochrome production approaching almost half of total annual global output, aspects of Cr(VI) generation and control are of particular relevance and importance to the local industry, and naturally to the global industry at large. This paper seeks to examine theoretical and practical aspects associated with Cr(VI)generation (based largely on experience within the local South African industry, but considered to be generally encountered in the broader global industry context), together with mitigating measures that can be applied within the context of the production processes. From the discussions it is clear that significant improvements in various Cr(VI)-related aspects have been made by the South African ferrochrome industry. However, it is also evident that several areas of uncertainty still exist, which require further research in order to better quantify risks and enhance the efficacy of mitigating steps. Keywords Hexavalent chromium, Cr(VI), ferrochrome production, South Africa.

Jan 1, 2010

By T. T. Matuludi

Kleinkopje Colliery has five Wemco drums that were installed and commissioned in 1978. Over the years, there have been remarkable changes in mining and geological conditions at the colliery. First, an increase in the percentage of fines was recorded, which resulted in an uneven split or an imbalance in silo levels between material feeding the cyclone (-12 mm) and Wemco drum (+12 mm) sections respectively. This problem was solved by doing modifications around the banana screens to allow finer material to the drums. The imbalance challenge was then followed by spontaneous combustion that takes place in situ and results in low product yield. The results obtained from efficiency tests indicate that although there is a limit in the percentage of -6 mm material in the feed, Wemco drums are still very efficient and applicable to the current mining conditions. These results also suggest that it is essential to lower the throughput when the drums are treating low yielding coal.

Jan 1, 2010

By Dr Peter Laxen

Dr Peter Laxen, the Mintek Consultant on gold and uranium, has won the 1982 award of the Percy Fox Foundation. The presentation was made by the Minster of Finance, Mr Owen Horwood, at a banquet on 6 March.

Jan 1, 1982

By W. D. Grimsley, R. P. King, J. B. See

Samples (15 to 20 g) of pre-calcined Mamatwan manganese ore or pure Mn 304 smaller than 48 mesh were reacted at temperatures in the range 1000 to 1300°C with samples of spectrographically pure graphite smaller than 325 mesh. Samples (1 g) of ore or pure Mn02 smaller than 48 mesh were reacted at temperatures of 1000 and 1200°C with pure graphite fines in argon, with graphite in carbon, .'1onoxide, and with carbon monoxide alone. In each case, the loss of mass as a function of time was recorded with a hermobalance. The rate and degree of reduction were found to increase with additions of carbon and with increasing temperature up to 1300oC, when they reached their maximum. The shape of the reduction curves, together with the results obtained from examination of the products of reaction by microscopy and X-ray diffraction, were used as the basis for a postulated reduction mechanism. Some details are given of an initial kinetic model that was used to verify the proposed mechanism. It was found that the reduction of Mamatwan ore by graphite at temperatures in the range 1000 to 1300°C occurs in two stages: (i) an initial stage during which the higher oxides of manganese are rapidly reduced to MnO with concurrent formation of CaMn2O4 and (ii) a longer stage during which CaMn2O4 and MnO are reduced to carbides by carbon dissolved in the ferromanganese phase.

Jan 1, 1978

By D. R. Hardman

South Africa is the third-largest supplier of coal on the world's export markets after Australia and the USA, and the second-largest supplier of bituminous steam coal following Australia. There are many Similarities between the coal industries of South Africa and those of Australia and the USA, in contrast to the coal industries in Europe. For South Africa to maintain a competitive position on the export markets, it must continue to compete against these two countries. It is therefore important that the performance of the loca1 coal industry should against that of the Australian and US coal industries. Although financial performance is the major criterion, financial information is not easily obtained, and the paper therefore uses employee productivity in the form of tonnes per man year as a means of comparison. The paper reviews recent trends in the level of production and numbers of employees prior to review1ng the productivity. The influence on productivity of some mining methods is highlighted. It is realized that published information (information available within the public domain) can contain anomalies, but every effort is made to compare data of a similar type. Notwithstanding possible inaccuracies, it is shown that South African coal-De productivity lags far behind that of Australia and the USA. The significance of the difference is that the South African coal industry is able to apply overseas practices and procedures that have been shown to give improved performance, and that the increased use of more productive extraction techniques has limited application.

Jan 1, 1996

By P. R. Jochens, D. D. Howat, A. A. Hejja

The effect of the reactivity of lime on desulphurization efficiency in the basic oxygen furnace A. A. HEJJA, Dipl. Ing. (Budapest) (Visitor) D. D. HOWAT, B.Sc. (Glas.), Ph. D., F.I.M. (Fellow) P. R. JOCHENS, Pr.Eng., M.Sc. (Eng.) Rand, Ph.D., A.I.M. (Member) The iron charged to the basic oxygen furnace at the steel plant of Highveld Steel and Vanadium Corporation has a relatively high sulphur content. Considerable emphasis is therefore placed on the reactivity of the lime. An investigation of the lime used at the steel plant showed that its reactivity had deteriorated considerably both during transport from the supplier (Northern Lime Company) and during storage and handling at the steel plant. The deterioration on the steel plant is the more severe, and is due to hydration and carbonation. Rapid deterioration is a characteristic of highly reactive lime when exposed to the atmosphere. Plant tests showed that the desulphurization efficiency decreases with a decrease in the reactivity of the lime. The addition of slag rich in manganous oxide to the furnace considerably improved the efficiency of desulphurization that can be achieved with limes of lower reactivity and with lime that has deteriorated. A decrease in particle size of lime of lower reactivity greatly increased the desulphurization efficiency. Less lime of higher reactivity is required for the same degree of desulphurization to be achieved. Lime of higher reactivity gives rise to slags with lower ferrous oxide contents and hence the steel yield is increased.

By I. J. Barker

This paper argues that the scale up of furnaces and the supply of electricity are going to be two major issues that will affect the ferro-alloy industry in the near future, and that economic factors will drive this development. The most common type of furnace for producing ferroalloys at present is the submerged-arc furnace with three electrodes, fed from a three-phase AC electrical supply. The scale up of this technology has now reached a fundamental constraint, which is caused by the electrical reactance of the secondary circuit. If the economy of any further scale up is to be achieved in the future then a different technology will have to be used. The supply of electrical power in future is likely to become amore complex issue than it is at present. Existing submerged-arc furnaces tend to run at fairly steady loads, but the ability to swing the load under demand-side management may offer advantages, and may allow a furnace to obtain cheaper power from the organizations that supply this power. This will have to be counterbalanced against the nuisance factors incurred by having a varying load in the operation of the furnace. Various options are therefore discussed in this paper. The possibility of scale up of Søderberg electrodes is discussed, as well as the use of DC power and multiple electrodes. Some of the issues with load swinging are also examined. A particular scenario is also briefly presented to show that considerable further scale up of ferro-alloy furnaces is still possible.

Jan 1, 2011

By Colin M. Spence

The Federation of Societies of Professional Engineers (FSPE), in collaboration with the Habitat Council and the Environmental Planning Professions Interdisciplinary Committee (EPPIC), held a Symposium on 'Engineering our Environment' at the Rand Afrikaans University on 5th June, 1984, under the chairmanship of Mr Colin M. Spence, Vice-President, to commemorate World Environment Day.

Jan 1, 1984

By A. J. Jager, N. C. Joughin

The effects of extensive solid-waste packing as a support medium are described. It is shown that the waste packing resulted in excellent hangingwall conditions with only minor deleterious effects.

Jan 1, 1979