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By W. Stumpf

Mill log analyses and complementary hot deformation studies were carried out on the as-cast structure and on a hot rolled structure of the same low carbon steel (SAE 1006) that had been processed according to the direct or hot charge route in a compact strip plant. The main softening mechanisms during hot rolling were found to be complete dynamic recrystallization during each pass above about 1000°C for the as-cast structure with an austenite grain size of 277µm and, secondly, incomplete static recrystallization after each pass with a finer austenite grain size of about 26 µm and tested below 1000°C. A two-stage hot working mechanism has also been found by others on a similar steel also processed by the hot charge route and this may appear to be a characteristic of this type of material. Constitutive constants determined from hot working studies were combined with other constants from the literature and incorporated into a grain size development model that correctly predicts the final ferrite grain size in the hot rolled strip steel. The predicted incomplete static recrystallization during the last three finishing passes in the plant appears to result in some retained strain in the hot rolled austenite as it transforms to ferrite on the run-out table. Analyses with the model predict relatively little sensitivity of the final ferrite grain size to process and product variables such as temperature and strain per pass for the last three passes and also the starting austenite grain size in the slab. Keywords: Low carbon steel, hot rolling of strip steel, rolling mill log analyses, austenite grain size, ferrite grain size, grain size modelling.

Jan 1, 2003

By F. -Z. Ji, A. G. Irons, M. Barati, K. Coley

In order to optimize carbon injection into oxidizing slags, in terms of carbon and iron yield, we must have a detailed understanding of the kinetics of the reactions involved. The current study measures the rate of carbon oxidation during injection at steelmaking temperature by means of injections of coal into EAF slags. The compositions of analysed outgoing gas were used to calculate gas flow rate and hence the gasification rate of carbon. A fundamental equation to predict residual carbon in slags was developed. The predictions using this model at moderate injection rates are in good agreement with experimental data. The reaction rate of EAF slag with carbon is under mixed control by the slag gas and the gas carbon reactions. The relative importance of each step depends mainly on the v-ratio of slags. A relative reactivity parameter ? has been defined and it is found to be important to carbon-slag reaction kinetics and slag foaming. Key words: carbon-slag reaction, kinetics, slag foaming.

Jan 1, 2004

By Dolly Chakraborty, S. Ranganathan, S. N. Sinha

Experiments were conducted to study the influence of temperature, particle size and ore/coke ratio on the kinetics of reduction. The rate of reduction increased with temperature. The reduction of iron was completed at shorter time intervals at temperature above 1000ºC. Usually the reduction of chromium commenced after the reduction of iron was almost complete. Reduction was controlled by diffusion at low temperatures and by chemical reaction at higher temperatures. The nature of the reducing agent had a very significant influence on the rate of reduction. The study showed that chromium was converted into the carbide during reduction. Increasing the size of the reducing agent increased the rate of reduction initially. After a critical size, the rate of reduction decreased. However, increasing the size of the ore particle decreased the rate of reduction, initially. Beyond a critical size, it increased. An optimum particle size of the chromite ore and that of coke must be chosen, particularly in the production of agglomerates to achieve maximum degree of reduction.

Jan 1, 2007

By David J. Blackwell

The challenge; to design production facilities and in particular separation equipment which have the ability to deal effectively with the ever changing composition of well fluids, over the life time of the field in which it is operating, ensuring maximum uptime of the asset coupled with consistently effective separation. Design engineers are, however, continually confronted with a dilemma when selecting materials of construction for Oil/Gas separation equipment, since they are generally obliged to select an acceptable material of construction, based on ?predicted? operating conditions, at the lowest acceptable cost. Consequently many designs are somewhat basic and do not take into account the constantly varying dynamics of the well fluids being released into the separator. As oil fields mature, oil companies endeavour to maximize revenue by maintaining oil and gas throughputs. This often results in an associated increase in water and sand volumes and, in order to maintain efficient separation, an increase in operational temperature and pressure; subjecting the equipment to operational conditions for which it was never designed. In reality, therefore, the limitations and constraints placed upon new construction design often result in Maintenance Engineers having to solve the ensuing problems in difficult ?in-field? environments. Should refurbishment or upgrade be required then the status of the platform and that of the vessel during shutdown will dictate how this is achieved. Hotwork on the vessel is generally not preferred due to the requirement for post weld heat treatment and re-classification of the pressure vessel, not to mention the added risk in terms of safety. Unfortunately, until recently, there have been few alternatives to conventional ?hotwork? repair and protection systems, especially since the performance of cold curing polymer based repair and coating systems, for use in oil and gas process equipment, has, until recently, been limited by their resistance to temperature and pressure in immersed conditions. In line with the continued development of high temperature / high pressure oil and gas fields however, recent breakthroughs in polymer technology can now offer both repair and protection solutions which are able to function effectively at temperatures up to 180°C in immersed conditions combined with resistance to the destructive forces of explosive decompression from pressures in excess of 90 bar. This paper will look at recent work that has been undertaken to determine the suitability of modern polymer based repair and protection systems as an alternative to hotwork; thus enabling newly designed and upgraded internals to be cold bonded into position and further protected with temperature resistant coatings, in order to minimize the downtime of the asset and further to protect the vessel internals from the Erosive Corrosive environment.

Jan 1, 2006

By Nobuzwe Makhotla, Sasha Boskovic, Steve Hearn

"Mineral separation efficiency in flotation depends, to an extent, on the type of frother used. Huntsman develops and manufactures unique frothers which are suited for mineral processing applications. This paper discusses the Huntsman approach to understanding the industry’s flotation frother requirements to optimise frother selection and introduce the Huntsman’s POLYFROTH® frother range. Specific case studies where the frothers are used are discussed. INTRODUCTION Froth flotation is a process of using bubbles to separate minerals based on their relative affinity for water. Bubbles are induced in the slurry through aeration. Chemistry is used to aid the flotation process and chemical reagents are added to enhance the separation process. The flotation reagents include frothers, collectors, surface modifiers and pH regulators that control physical and chemical conditions of solid, air and liquid phases, respectively. As described by Harris (1976), the key effect is that of bubble size control by way of preservation of the generated bubble size, which is attributed to the coalescence inhibition by the presence of the frother on the bubble surface. Following this, the frother must stabilize the froth phase. Frothers are also added to create optimal conditions for bubble creation and stability by decreasing the surface tension of the water. Depressants may be added, depending on the ore treated, to assist the hydrophilic particles to stay in the water phase. Clay particles may need to be dispersed to prevent them from attaching to the bubbles. Hydrophobic particles attach to the bubbles and are carried to the surface of the slurry where froth is formed. It is important for these bubbles to have the mobility to carry the mineral to the launder where the concentrate is collected. Types of Frothers There are generally three main groups of frothers used in froth flotation. Alcohol Type These frothers have a molecular structure that usually includes 5 to 8 carbon atoms in a hydrocarbon chain and their solubility in water is limited. Methyl isobutyl carbinol (MIBC) belongs to this category and is widely used in the industry. The weaker alcohol-type frothers are more selective and typically suited to finer particles. There are three sub-categories under this group: aliphatic, cyclic and aromatic alcohols."

Jan 1, 2015

In exploiting the ultra-deep, narrow reef ore bodies of the Witwatersrand, the ventilation and cooling systems within the stopes play a critical role because of high concentrations of active workers. This paper examines the heat, ventilation and cooling effects of a number of different stoping layouts for narrow reef mining in ultra-deep operations in very hot rock. The stope ventilation and cooling needs are driven primarily by the difference between the air temperature and that of the rock front being excavated. These needs depend on the face utilization, geometry, face advance (rate and direction), layout, backfill, use of water and machinery1,2,3. Detailed studies of different stoping configurations have been undertaken for mining operations extending to depths of 5000m below surface, where virgin rock temperatures approach 70°C. Extensive work has been completed with regard to evaluating ventilation and cooling requirements to maintain air reject temperatures of 28°C wet-bulb and better. This knowledge is being used to determine overall cooling requirements, reduce operational costs and maximize the efficiency of cooling systems. These issues are important when considering both the local and regional air conditioning systems and the most effective application of in-stope chilled water.

Jan 1, 2001

By Marko Lampi, Marc Nicolle, Janne Karonen, Kari Valkama

"In the ten years from 2003 to 2013 global mine production of copper has increased by over 23% to meet demand while the weighted average head grade has dropped from 0.9 to 0.7% Cu. These divergent trends of increasing demand and declining economic grades will extend the life of many existing mines and improve the viability of marginal and/or complex copper deposits. Against that context this paper outlines hydrometallurgical copper sulphide leaching options as alternatives to the more conventional pyrometallurgical processing route of copper sulphides. Three copper sulphide leaching and refining processes are discussed: total pressure oxidation, ferric sulphate leaching and copper chloride leaching. The effect of mineralogy on the choice of processing technology is discussed as well as some of the unit processes used. Additionally, possible benefits that a hydrometallurgical process may offer over an existing pyrometallurgical route are discussed. Subsequently, two very important aspects to the development of projects involving the leaching of copper sulphides are discussed. Finally, a number of conclusions are presented that will be useful to keep in mind when considering projects involving the leaching of copper sulphides. INTRODUCTION In the ten years from 2003 to 2013 global mine production of copper has increased by over 23% to meet demand while the weighted average head grade has dropped from 0.9 to 0.73% Cu (Murphy, 2014). If these divergent trends of increasing demand and declining economic grades continue, they will contribute to the extension in life of many existing mines and improve the viability of marginal and/or complex copper deposits. Against that context, this paper outlines hydrometallurgical copper sulphide leaching options as alternatives to the more conventional pyrometallurgical processing route for copper sulphides. Three copper sulphide leaching and refining processes are discussed: total pressure oxidation, ferric sulphate leaching and copper chloride leaching. Ferric sulphate leaching and copper chloride leaching are carried out at atmospheric pressure while total pressure oxidation takes place at elevated pressures."

Jan 1, 2015

By I. McDougall

The matte/slag tidal zone in a nickel-copper-iron-sulphide matte smelting furnace is subject to severe process conditions that can lead to premature failure of the lining. The MgO-FeO-SiO2 slag is aggressive to refractory bricks, while the Ni-Cu-Fe-S matte is aggressive to water-cooled copper cooling elements, and can penetrate and sulphidize refractory bricks. A novel approach to the lining design was taken at a PGM smelting furnace, where an indirectly-cooled graphite ring was applied in the matte/slag tidal zone, with refractory bricks on the hot face. The graphite was cooled by the copper cooling elements in the slag zone, obviating the need for copper cooling elements in the tidal zone. In this paper the effectiveness of different lining designs utilizing varying degrees of cooling in the slag zone and slag/matte tidal zones is compared. In comparison to water-cooled copper in various configurations, cooled graphite shows promise as an indirect refractory cooling system in the tidal zone area of furnaces. Keywords PGM smelting, graphite, refractory lining, copper cooling elements, submerged arc furnace.

Aug 1, 2013

By H. T. Chiwaye

Risk analysis is an important step in the design of rock slopes in open pit mining. Risk is defined as the product of the probability of slope failure and the consequences of the failure, and is generally evaluated in terms of safety and economic risk. Most of the risk analysis done at present is based on the use of limit equilibrium (LE) techniques in evaluating the probability of failure (POF) of the slopes. The approach typically makes use of full Monte Carlo simulations of the limit equilibrium models, with all uncertain variables randomly varied. The number of required simulations is generally over a thousand, at times as high as 20 000, in order to produce statistically valid results of the POF. Such an approach is clearly not practical when using numerical modelling programs dueto the high computational effort required. This paper explores the impact of using numerical modelling instead of the traditional LE techniques in evaluating the probability of slope failure. The difference in the overall assessed risk, in terms of economic impact, for the mining operation is then evaluated. With numerical models, approximate methods are used in the calculation of the probability of failure instead of full Monte Carlo simulations. This paper will use a method called the response surface methodology (RSM) for estimating the POF from numerical analyses. Simple slope models were used to verify the accuracy of the RSM method by comparing the results with those obtained from full Monte Carlo simulations. It is shown that there is good agreement between the POF values computed using full Monte Carlo simulation and those obtained using the RSM method. Finally, the use of numerical modelling in the assessment of risk is shown to bring a significant difference in the result compared with that from LE methods. One of the reasons for the difference is that LE models tend to underestimate the failure volumes and hence the consequences of slope failure.

Jan 1, 2010

By B. D. H. Knights

In November 2009 Mintek installed the FloatStar? advanced flotation stabilization system on Vale's Cauê iron ore beneficiation plant in Brazil. In September 2010 the system was upgraded to include flotation optimization. The circuit consisted of two parallel cleaner circuits producing final concentrate. The tailings from the cleaner section passed through a scavenger circuit. Large, well-instrumented feed sumps played an important role in circuit stability, presenting a good opportunity for advanced control. Previously the plant was controlled using distributed control system (DCS) level control only. The flotation circuit processes roughly 30kt/day. The FloatStar system provided advanced control of the flotation circuit as well as of the sumps feeding the circuit. The system underwent a lengthy trial to assess the benefit that it provided. Two data sets were analysed, showing performance under advanced stabilization and optimization respectively. Several validation and consistency criteria were employed to ensure the quality of the analysis. Iron recovery and iron tailings grade were used to measure system performance. The analysis showed that the system increased recovery by up to 2.7%. In addition, the system decreased the iron tailings grade by between 1.2% (from 23.5% to 22.3%) and 4.3% (from 31.3% to 27.0%) during different test campaigns. The analysis also showed that the entire FloatStar stabilization system was active for 72.7% of the time from first activation to the end of the first data set (approximately 200 days). From the analysis it was concluded that under similar conditions for 'ON' and 'OFF' tests, the system provides a clear benefit. It was also found that over the longer term, the system continues to provide a benefit. This finding suggests that the results were not simply due to a short-term advantage. The size of the data set, as well as the magnitude of the recovery improvements, lends considerable confidence to these results. Therefore, it can be concluded that the FloatStar control system provides substantial benefit to operations at this site.

Jan 1, 2012

By S. M. Rupprecht

"SynopsisThis paper is intended to document recent personal thoughts, opinions, and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) and its current usage by Competent Persons. Admittedly, some debates are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the SAMREC Working Group.Some of the more critical issues currently under examination are the definition of Competent Person and the potential registration of Competent Persons, the current re-write of the Code, and the introduction of reporting of Exploration Results, Mineral Resources, and Mineral Reserves on an ‘If not – why not’ basis, noncompliance with the Code and discipline, the role of the Johannesburg Stock Exchange Readers Panel, and the valuation of mineral assets based on scoping studies.IntroductionThis paper is intended as a personal memoir of recent thoughts and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) (‘the Code’). Admittedly, some debates, such as reporting of Mineral Reserves inclusive or exclusive of the Mineral Resource, are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the South African Mineral Resource Committee (SAMREC) Working Group. The author, who has been involved with the SAMREC Working Group since 2007, offers observations in his personal capacity as a professional mining engineer with the intent of getting practitioners to contemplate the influence of the Code on the mineral industry. Current practices in the compilation and reporting of Exploration Results, Mineral Resources, and Mineral Reserves are often deficient in adhering to the Code and a conscious effort must be made by the mining sector to improve the standard of public reporting, in particular Competent Person Reports (CPRs) and Public Reports issued by listed mineral exploration and mining companies."

Jan 1, 2015

The roasting of sulphide ores and concentrates is often the first step in the production of metals or chemicals. In many processes, the production of sulphuric acid is viewed as a by-product, while in some plants production is an important economic factor. Regardless of the purpose, a pyrite roasting plant consists of mainly three plant sections: roasting, gas cleaning and sulphuric acid. With the addition of air, the pyrite concentrates are transformed into solid oxides and gaseous sulphur dioxide at temperatures of 600 - 1000° C. After cleaning and cooling, the sulphur dioxide in the roasting gas is further processed to sulphuric acid. Two types of reactors are used depending on the application: stationary or circulating fluid bed . For over 60 years, Outotec has progressively been developing the principle of fluidised bed technology in several different reactor types for a multitude of process applications. The versatility of the fluidised bed reactor system has manifested itself in the treatment of minerals, including solid fuels, and for metallurgical processes both in the ferrous and non-ferrous fields. Process applications have included roasting, calcining, combustion and charring of coals, as well as off-gas treatment. This paper provides a summary of the pyrite roasting technology currently used along with a simple cost comparison of pyrite roasting and sulphur burning processes.

Jan 1, 2009

The roasting of sulphide ores and concentrates is often the first step in the production of metals or chemicals. In many processes, the production of sulphuric acid is viewed as a by-product, while in some plants production is an important economic factor. Regardless of the purpose, a pyrite roasting plant consists of mainly three plant sections: roasting, gas cleaning and sulphuric acid. With the addition of air, the pyrite concentrates are transformed into solid oxides and gaseous sulphur dioxide at temperatures of 600 - 1000° C. After cleaning and cooling, the sulphur dioxide in the roasting gas is further processed to sulphuric acid. Two types of reactors are used depending on the application: stationary or circulating fluid bed . For over 60 years, Outotec has progressively been developing the principle of fluidised bed technology in several different reactor types for a multitude of process applications. The versatility of the fluidised bed reactor system has manifested itself in the treatment of minerals, including solid fuels, and for metallurgical processes both in the ferrous and non-ferrous fields. Process applications have included roasting, calcining, combustion and charring of coals, as well as off-gas treatment. This paper provides a summary of the pyrite roasting technology currently used along with a simple cost comparison of pyrite roasting and sulphur burning processes.

Jan 1, 2009

By M. Mikolás, L. Pomothy, K. Špakovská, M. Vanek

"Enterprises are faced with increasing economic competition and managers are obliged to look for methods that will ensure a competitive edge in their companies’ markets. These methods include managerial concepts that employ common sense and are low cost. One of these approaches is the KAIZEN methodology, of Japanese origin; kaizen means continuous improvement (CI) when translated. A mining company, despite some of its idiosyncrasies, is just an enterprise where the application of KAIZEN can be advantageous. The company investigated, OKD, is the only domestic producer of hard coal in the Czech Republic and operates four mines that produce 11 Mt of coal annually. The OKD management team opted for KAIZEN as their principal method of continuous quality improvement. This paper suggests ideas for development and application of processes that provide for continuing improvement of production and management. The authors have taken the OKD Company to be their benchmark in the field of mining activities. The paper also focuses on possible difficulties accompanying the introduction of CI sustainable methods. Three years of application of CI methods has increased the income of the company by almost US$38.1 million, which provides a strong argument for continued application."

Jan 1, 2015

By B. Genc

After the explosion at Middelbult Colliery, South Africa in May1993, which claimed 53 lives, the South African Coal Mining Industry and the Safety In Mines Research Advisory Committee (SIMRAC) united forces to establish a surface facility to develop and test on-board flame suppression systems for continuous miners and roadheaders. The first test that was conducted in this newly constructed test tunnel at the Kloppersbos Research Facility, CSIR was in July 1995.Since then 70 tests have been conducted using the facility and have focused on on-board active ignition suppression systems for continuous miners (CM) and road heading (RH) machines to enhance the safety of South African mine workers in collieries. These suppression systems are mounted on the CM or RH machine and detect the occurrence of an ignition by means of light-sensitive sensors. The electronic signal from the sensor triggers the suppression system, creating a flame-suppression curtain, containing and extinguishing the flame in the immediate vicinity of the ignition. Forty-three tests have been conducted with an active on-board suppression system present inside the test tunnel. Since flame propagation speed is an extremely important parameter, the CSIR-Miningtek made the results of the test programme available for re-analysis. Flame speed depended on whether a machine was present in the heading or not, the geometry of the heading and the volume and composition of the explosive mixture of gas. Flame speeds of up to 190 m/s were recorded. However, the active suppression systems were almost always successful in containing flame propagation.

Jan 1, 2002

By A van Jaarsveld

Environmentally-friendly, safe and cost-effective technology for stope drilling has successfully been introduced at TauTona mine. It has enabled the problem of inadequate compressed air pressure and its downgrading impact on production capability to be overcome. The paper traces the development process which culminated in the conversion of the entire stoping operation at TauTona to electric drilling. Background work which took place at other mines is also described. Statistics of performance improvements are provided. 1. Introduction Holman?s Silver series and the Seco S215 were drills that had a measurable impact on the South African gold mining industry. It is too soon to say whether Hilti will join those great names. However, there is no doubt that the introduction of electric drills into the harsh and unforgiving world of deep level gold mining is a significant development. History has shown that being the first to enter a new technology is no guarantee of long-term success. The pain and suffering which accompany the birth of anything new can deplete the energy of the innovator while at the same time creating opportunities for competitors to leapfrog him. In addition to commitment and enthusiasm, the innovator must therefore also possess, or have access to stamina and resourcefulness to overcome the unexpected difficulties which will inevitably arise. All of these were needed for the Hilti project.

Jan 1, 2008

By A. McLean, M. Iwase, K. Wakimoto, K. Katogi

For many decades control strategies have been based upon samples taken from liquid steel, molten slag and gas phase as well as from solid products. Because of recent developments in the areas of dynamic control models, artificial intelligence and expert systems, there is an increasing incentive to develop diagnostic sensors, which permit in-situ rapid determinations of concentrations of various elements in molten steel. In this paper, an overview is given on recent developments in the areas of sensors for use in ferroalloy and steel production. Particular emphasis will be given on (i) innovative application of sensors for on-line determinations of dissolved elements, Si, P, N, H and Cr in molten iron and ferroalloys, (ii) evaluation of inclusions in liquid metal and (iii) rapid determinations of slag compositions.

Jan 1, 2004

By H. Sekimoto, T. Matsuoka, K. Yasuhara, M. Ota, S. Akutagawa

A magnetic anisotropy sensor is used for nondestructive measurement of stress on surfaces of a ferromagnetic material, such as steel. The sensor is built on the principle of the magneto-strictive effect in which changes in magnetic permeability due to deformation of the material is measured in a nondestructive manner, which then can be translated into the absolute values of stresses existing on the surface. This technique was applied to measure stresses of H-beams used in tunnels. The results show that this method could be one of the promising technologies for non-destructive stress measurement for safe construction of underground structures. Une sonde magnétique anisotropique est utilisée pour des mesures non-destructives de stress sur la surface d' unmétal ferromagnétique, comme l'acier. La sonde est construite sur le principe de l'effet magnéto-strictif dans lequel les changements dans la perméabilité magnétique due à la déformation du metal est mesurée avec une manière non-destructive, qui peut être alors traduite en valeurs absolues des stress existants à la surface. Cette technique a été appliquée pour la mesure de stress des poutres en H utilisées dans les tunnels. Les résultats montrent que cette méthode peut être l'une des technologies promet tantes concernant les mesures non-destructives de stress pour des constructions sûres de strcutures souterraines. Ein magnetischer Anisotropie-Sensor wird für die zerstörungsfreie Messung von Spannungen an Oberflächenvon ferromagnetischen Materialien wie z.B. Stahl verwendet. Der Sensor kann Änderungen in der magnetischen Durchlässigkeit auf Grund von Verformungen des Materials erkennen, die dann in Absolutwerte der Spannungen an der Oberfläche umgerechnet werden können. Die Methode wurde auf Messung von Spannungenvon H-Balken in Tunnels angewendet. Ergebnisse zeigen, dass dies eine vielversprechende Methode für diezerstörungefreie Messung im Tiefbau ist.

Jan 1, 2003

By B. Derin, T. Uzunoglu, O. Yücel

In this study, reduction behaviours of Turkish chromite concentrate (48 % Cr2O3, 13.30 % FeO, 18.33 % MgO, 12.37 % Al2O3, 5.76 % SiO2) and nickel oxide by Fe-C alloy in graphite crucible were investigated. In the first stage of experiments, steel scraps were melted in graphite crucibles and were saturated with carbon at 1600 °C and 30 min. In the second stage, mixtures of different amount of chromite concentrate, nickel oxide and flux additives (CaO,SiO2 and CaF2) were charged into the graphite crucible containing the Fe-C alloy and heated to 1600 °C for different reduction times (0-180 min) under argon gas. The highest Cr and Ni con-tents in alloys were found as 11.41 and 14.37 % and the highest Cr and Ni recoveries were found as 88 and94 %, respectively at 180 min.

Jan 1, 2007

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999