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South Africa remains the largest global producer of gold, accounting for 11.3 per cent of total world mine production, which amounted to 2520.2 t in 2005. The benefits and disadvantages associated with hedging practices in general, and among South African gold producers is examined. The wide variety and unique nature of risks faced by the mining industries provide a strong case for hedging. Only the principles of hedging, such as selling ounces of gold in the ground at a pre-agreed price for delivery at a future date as a cost-effective mechanism for price risk management, is discussed. Progressive and cumulative increases in the volume of forward sales in the major producing countries are considered by many to be the cause of the declining gold price over the past decade. In spite of negative publicity, forward selling continued as an industry-wide practice until recently (2002) when the global hedge book contracted by 352 t; contraction amounted to 158.6 t in first quarter of 2006. The objectives and benefits of hedging include continuity and stability of cash flows, stability in price achieved, reduction of frictional costs, and creating an effective management tool. The importance of a defined hedging strategy in reducing uncertainty about the hedging objectives is essential to a successful hedging policy. Historical patterns in hedging revenues at an industry level indicate five distinct periods during which the fortunes of hedgers have fluctuated. Finally, since 2001 the rising gold price and reduced price volatility through the consolidation in the global price means that the need to stabilize revenue flows is less urgent. This has meant that hedging is becoming progressively less important for the mining industry at large.

Jan 1, 2007

By B. W. J. van Rensburg, M. J. Schmidt

Bulk materials handling systems are extensively used in the mining and minerals industry, where a fairly high incidence of structural failure is experienced, notwithstanding design compliance with appropriate standards. A number of case studies are explored to demonstrate how insufficient controls or protection systems have contributed to structural failures on mobile bulk handling equipment. The importance of design integration across engineering disciplines is highlighted. The revision of ISO 5049-1 (1994) is proposed to provide specific rules and guidelines pertaining to machine protection systems. It is further recommended that the structural design engineer of the original equipment manufacturer(OEM) fulfils a more prominent role during the final acceptance and handover of mobile bulk handling equipment, with specific reference to protection systems.

Jan 1, 2015

By M. K. Roberts

The approximately 2800 Ma old Ventersdorp Contact Reef is a unique Witwatersrand orebody, from which about 6% of the world?s gold production is derived. A major portion of this production is mined at depths exceeding 2500 m and deepest levels of mining are at about 3600 m. The orebody?s hangingwall consists of volcanic rocks. This differs from the older Witwatersrand orebodies, which have quartzitic hangingwalls. The thickness of the Ventersdorp Contact Reef is generally about 1.20 m, but is highly variable, at an average dip of about 18°. A pronounced unconformity beneath this orebody is also expressed by varying footwall rock type characteristics and frequent rolling of the reef plane. These rolls follow topographic variations of the palaeo-surface. More geological than rock mechanics studies were performed on the Ventersdorp Contact Reef prior to 1992. Recently, however, a multidisciplinary team comprising various rock engineering and geological disciplines has delineated geotechnical areas by a novel technique. Geotechnical areas are defined by distinct footwall/hangingwall rock assemblages. The presence of three footwall and two hangingwall rock types results in the definition of six geotechnical areas across a distance exceeding 60 km, including about 10 gold mines. Distinct rock mass behaviour has been documented in three of the six geotechnically defined areas. Different rock mass behaviour is expressed by features such as mining-induced fracturing, closure rates, fall of ground characteristics and seismic character. Some geological features override the rock mass behaviour as defined for the individual geotechnical areas. These are undulations of the orebody or the frequency, characteristics and attitude of major discontinuities. It is concluded that the concept of geotechnically subdividing orebodies is not only important for facies delineation and the associated grade, but also needs to be considered for safety aspects, in determining factors such as the appropriate support to be employed.

Jan 1, 1999

By I. A. Mutemererwa

This paper investigates the role of vertical integration between chrome ore mines and ferrochromium smelters in the location of ferrochromium production capacity in South Africa and Zimbabwe. Vertical integration is important in understanding the increasing competitive position of these two countries as observations show that an increasingly larger share of the global market has been coming from integrated producers. The paper argues that the increased vertical integration between mines and smelters in South Africa and Zimbabwe has led to a lower cost of chrome ore as an input compared with other producers. Underlying this hypothesis is the basic tenet that, more likely than not, production will take place where the costs are lowest. The paper concentrates on high carbon ferrochromium (HCFC) production in market economy countries (MEC). Using an ordinary least squares model, the study tests the relationship between low chrome ore costs and vertical integration shows a statistically significant relationship. These findings partially support the view that the control of sources of chrome ore is a major source of competitiveness. Keywords: competitiveness, ferrochromium (ferrochrome), ordinary least squares, dummy variables, vertical integration, southern Africa.

Jan 1, 2000

By G. S. Harper

Noise in general and drilling noise in particular have received increasing attention within the South African mining industry during the last 10?15 years. The Mine Health and Safety Committee1, during their 2003 annual summit, established two significant milestones to be met by December 2008 and December 2013. The 2008 milestone target is that of no more than ten per cent deterioration in hearing among occupationally exposed individuals, whereas the 2013 milestone target is that of less than 110 dB sound pressure levels at any place in the workplace. While these targets relate to general noise within the mining industry, it is widely believed that the most significant source of noise contributing to noise induced hearing loss (NIHL) among the underground workforce, is that of pneumatic rock drills. Data pertaining to the noise emission level of any machine is generally reported as either a sound pressure level or a sound power level of a single machine measured under free field conditions as defined in Appendix 3 of SABS-ISO 37442. However, rock drills are seldom used in isolation and underground conditions cannot be considered as free field. A methodology for the selection of rock drills on the basis of total operating cost has been developed. However, this paper focuses on the noise elements of the generic methodology and provides a model for the prediction of the composite sound pressure level and the equivalent noise exposure levels of groups of individuals from machines, used singly and in combination in an underground environment based on the sound pressure level determined according to SABS-ISO 3744 under free field conditions. The methodology includes provision for the consideration of the effect of hearing protection devices and the use of multiple machines in combination and provides an indication of the potential costs of hearing compensation.

Jan 1, 2006

By E. Pizarro, A. Videla, G. Compan

One of the main problems related to mining investment decisions is the use of accurate prediction models. Metallurgical recovery is a major source of variability, and in this regard, the Chuquicamata processing plant recovery was modelled as a function of geomining-metallurgical data and ore characteristics obtained from a historical database. In particular, the dataset gathered contains information related to feed grades, ore hardness, particle size, mineralogy, pH, and flotation reagents. A systemic approach was applied to fit a multivariate regression model representing the copper recovery in the plant. The systemic approach consists of an initial projection of the characteristic grinding product size (P80), based upon energy consumption at the particle size reduction step, followed by a flotation recovery model. The model allows for an improvement in the investment decision process by predicting performance and risk. The final geometallurgical model uses eight operational variables and is a significant improvement over conventional prediction models. A validation was performed using a recent data-set, and this showed a high correlation coefficient with a low mean absolute error, which reveals that the geometallurgical model is able to predict, with acceptable accuracy, the actual copper recovery in the plant.

Jan 1, 2015

By G. Lyman

The cross-belt sampler is a device that is very widely used even though it has not been ratified by the Standards associations. This paper is concerned with the bias testing of two cross-belt sampler designs against stopped belt samples and a cross-stream cutter at the belt end. The bias analysis is carried out using size distribution as the analyte and conventional t-testing and the Hotelling T squared test, which are compared for their effectiveness. The paper considers the issue of detectable bias and the statistical planning of bias tests.

Jan 1, 2010

By J. C. Ashby

Electric utility response to certain amendments of the Clean Air Act has resulted in a production of several types of alkaline coal combustion byproducts. Alkaline combustion byproducts are gaining increased usage for acid mine drainage mitigation and abatement as research leads to a better understanding of their beneficial applications. Since January of 1997, Mettiki Coal Corporation has been injecting alkaline flue gas desulphurization byproducts from Virginia Electric?s Mt. Storm Unit #3 wet limestone scrubber into abandoned portions of the active Mettiki mine. This paper provides an overview of the key design, transportation, regulatory, and environmental issues faced in the project.

Jan 1, 1999

By F. Bonnet, J. Lehmann, H. Gaye

A review of thermodynamic information and models of slags, including associated software when available, is presented. The pertinence and accuracy of these models is discussed by comparison of their predictions for various slag thermodynamic properties with the available experimental data. Practical industrial applications will be illustrated by a literature review of the dephosphorization process of ferromanganese alloys and by the description of Ti behavior during silico-manganese alloys production. This latter example will show how the thermodynamic models have been used to propose a flotation treatment at low temperature to enhance TiC removal.

Jan 1, 2004

By A. A. Angelov

This paper presents a unique method of monitoring the effectiveness of the planning process as well as the execution of mine plans. The method primarily determines the degree of deviation from the original mine plans by comparing actual mined areas to initially planned mining areas. The performance of mining operations is also measured by comparing actual and planned tonnages for a particular period. Once the degree of deviation from mine plans has been established the cause/s of the deviation can be determined through a simple fault tree analysis. Accurate identification of the reasons of deviation can aid the mine in selecting possible methods to correct the deviation. It is, however, beyond the scope of this paper to discuss the methods employed in correcting such deviations, as each mining operation will have unique causes of plan deviation and methods of remedying them. Deviations from the plan greatly affect the yields obtainable, which in turn affects the life of mine, thus having negative economic and financial implications. Accordingly, this paper presents a project management method which aims to reduce risk by improving planning systems to ensure optimum overall extraction of coal reserves.

Jan 1, 2010

By H. Kotzé

Ticor SA began with a detailed feasibility study in 1995. The Hillendale mine (situated between Richards Bay and Empangeni) and mineral separation plant were approved in 2000. The smelter, just outside Empangeni, consists of two 36 MW DC arc furnaces that were commissioned in 2003. Experiences gained during the initial commissioning of the furnaces proved valuable in later commissioning work, as shown by the increase in ramp-up rates. The capacity of the plant is 250 kt/a TiO2slag and 145 kt/a of pig iron.

Jan 1, 2006

By P Papanastasiou, J Hadjigeorgiou, E Kyriakou

The south west area of Cyprus has a long history of slope instability problems. The location and extent of these landslides has been influenced by ground morphology, geological structure and the presence of weak rocks and cohesive soils. The main triggering mechanisms have been precipitation and/or seismic events. Landslides have contributed to the decision to relocate villages and considerable efforts have been put into maintaining the integrity of the local transportation network. This paper uses a recent case study of road embankment failure near Pentalia in southwest Cyprus to review the available tools for the analysis of slope instability. It further demonstrates how the shear strength reduction technique can be used in a finite element analysis to better visualise the slope instability mechanism of a road embankment and provide a reliable tool in selecting appropriate remedial measures.

Jan 1, 2006

A systematic study of groundwater conditions at eight underground mine sites exhibiting a wide range of groundwater qualities throughout Australia has been completed at the WA School of Mines. This has resulted in a new corrosivity classification for groundwater driven corrosion processes for cement grouted cable strand used in the Australian underground mining industry. The new corrosivity classification is simple to use and corrosion rates may be predicted from readily obtained in situ measurements of groundwater dissolved oxygen.

Jan 1, 2008

By P. J. van der Walt

The paper1(hereinafter BG) by two respected sampling experts contains sound theory and logic that can?t be directly refuted. Nevertheless, a practitioner knows that there is a broader context in which the practice of sampling takes place. This broader context, being less well defined than the theory of correct sampling, receives correspondingly less exposure which this commentary??prompted by? BG?seeks to rectify. ?Correctness? of a sampler is the central concern of BG, where it is presented as a sharp ?black-and-white ?distinction. Accordingly, comments below are grouped under the following headings: ?Correctness in practice ?Without correctness, what can be done? ?The broader context.

Jan 1, 2002

By Phillip M. Dight

A number of impending and actual pit wall failures have been observed and documented which have been interpreted to initiate on newly generated structural features. This infers failure through intact rock. Failure mechanisms have been postulated resulting from circumferential stress, extensional strain and brittle flexure. These will be discussed in the context of the failures and the associated monitoring. The implications of failure initiating on ?unknown? features has a significant impact for deep open pit mines where designs are based on the expected structural regime. Being able to anticipate such failures is important for design. Equally important is management of such changes as they arise. In this context, monitoring using high resolution microseismic techniques will be discussed as a means of providing early warning of such failures.

Jan 1, 2006

By J. L. Fuentes-Cantillana, Á. Rodríguez, P. Morillo

Evacuation operations from work places in the case of an emergency are the key to minimising the effects of catastrophic type accidents such as fires, explosions, cave-ins, floods, etc. The correct planning of these operations, having the necessary means for sounding alarms and communicating and suitable training of personnel are the key factors for guaranteeing successful evacuation. The article gives an analysis of the problem in the case of subterranean mining and various types of work developed by AITEMIN in this field, including the development of new alarm and communication means specially adapted to the characteristics of mining operations, development of tools for help in the preparation of emergency plans and experiences in the education and training of personnel.

Jan 1, 2003

By J. Wills

The use of drilling rigs to increasingly mechanize stope drilling has been acknowledged as important for the S.A. mining industry in it ís efforts to tackle the challenges of low productivity, AIDS and an ageing driller workforce. The spin-offs of increased safety, cost-effectiveness and better mining performance provide advantages to all?from the driller to the shareholder. However, implementation or product rollout has varied from outright success to dismal failure. A study of various cases by Novatek and Anglogold TDS showed clear reasons for these differences. Whereas the successes were characterized by clear objectives, accountability, user buy-in, a commitment to make the technology work and no-nonsense reporting, these were typically absent in failed implementations. The attitude at unsuccessful mines was to ?trial? the equipment?even subconsciously, a ?trial? is a test where failure becomes an acceptable outcome. During the study it became clear that mining management are not adequately trained to manage the often-tricky rollout process. They are often also not empowered or clearly mandated to deal with the organizational, human and technical issues that must dovetail to create a success. The output of the study was to develop a basic rollout process that could be used to formally manage the implementation of new drilling technology. Creating an alignment between the mine, workforce and supplier promotes a win-win situation that will not otherwise spontaneously arise.

Jan 1, 2002

By S. P. Pereira

The mechanized mining cycle using loaders and shuttle cars had its peak in terms of usage in the mining industry during 1950 through 1960. In Brazil, this system is still used at underground coal mines in southern Santa Catarina coal basin. With the aim of investigating the benefits of a new mining scheme using the room and pillar method for these local mines, a computational simulator model was developed in order to investigate the mining cycle. This paper presents the methodology used to develop the simulator and the results that the simulation shows regarding impact of the proposed new scheme on mining productivity.

Jan 1, 2012

By R. A. Williams

Electrical impedance tomographic methods have been applied to a variety of mineral and chemical processes in the laboratory and on plant. This review paper surveys technical developments in measurement methods to enable quantitative extraction of key process information in the form of mapping of concentration profiles, mixture homogeneity and suspension velocity. The methods for determining velocity are summarized, since this is of especial interest when applied to opaque systems where most conventional optically based measurements fail. A recent significant development is the use of ultra-high speed measurement that now allows velocity vectors to be extracted for fast moving mixtures and fluids (up to several metres per second). New data are reported pertinent to low and high solids concentration flow in pipelines. Use of the methods offer improvements to design of such systems but also points to the use of tomographic electrical sensor as online flow measurement and fault detection. This offers new opportunities for applications and benefits in the design and monitoring of mineral slurries and sludges.

Jan 1, 2008

Tunnelling under squeezing ground conditions poses significant challenges. There are fundamental differences in the choice of support for mining as opposed to civil engineering. This paper reviews ground support strategies that have been used to control large deformations in mining excavations based on field data from five different mines in Australia and Canada. Recommendations are made for improved ground control strategies in squeezing rock conditions.

Jan 1, 2008