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By T. Tholana, P. N. Neingo

"Mining companies globally are currently facing severe economic and financial challenges. In addition to global challenges, the South African mining industry has to face other operational challenges that are unique to the country and which threaten the survival and competitiveness of the industry. Profit margins are being squeezed by rising costs and decreasing commodity prices, while labour productivity is greatly affected by intermittent labour unrest. This paper analyses how the South African gold mining industry has performed pre-, during, and post the global financial crisis of 2008. The competitiveness of the industry in terms of labour productivity and industry cost curve position is analysed for the period 2006–2013 to assess the impacts of both the global financial crisis and labour unrest. An analysis of the South African gold mining industry is presented at company as well as mine level. Productivity measure in this paper is limited to labour productivity, in line with limited reporting on productivity. All the data analysed was obtained from the public domain. IntroductionSouth Africa dominated the world as the number one gold producer until 2009 when China took that position, and today South Africa ranks fifth after China, Australia, Russia, and the USA. According to Statistics South Africa (2009), South Africa still had about 30 years of production in the gold sector, a forecast that fluctuates based on the day’s modifying factors. Although South Africa has a comparative advantage in terms of minerals endowment, there are challenges faced by the mining industry that hinder translation of the comparative advantage into a competitive advantage. The industry continually seeks to address these challenges to remain competitive in global markets while addressing national and community needs.Neingo and Cawood (2014) argued that stakeholders in mining are continually concerned with mine management’s ability to translate use inputs effectively into quality outputs. They further suggested close monitoring of effective utilization of people, materials, and money to obtain maximum production of commodities under given conditions. Productivity is measured in various ways, including unit cost, output per employee, and output per unit capital equipment"

Jan 1, 2016

By R. P. Mohring

The South African Coal Industry had its beginnings in the Eastern Cape in 1859 when coal was mined to satisfy the fledgling settlements in the Eastern Cape. The growth in the industry was relatively slow up to the early 1970s when, firstly, the export business was expanded coupled with a major increase in the quantity of coal converted to liquid fuels and utilized for power generation. To meet this increased demand the industry developed many new operations employing the latest mining technology and systems. Coal production in South Africa reached 204 million tons in 1996 and revenue from exports reached R8 billion making it the second-largest foreign exchange earner after gold. In his address Rick P. Mohring describes the role coal plays in the international energy scene and outlines South Africa?s position as a producer and consumer of coal, and the challenges facing the industry. A wide range of steam-coals are produced to satisfy both the local market (power generation, coal conversion and the metallurgical industry) and the export steam-coal market. South Africa is in a unique position regarding the export market as it is still a relatively low-cost producer and is geographically well-placed to play in both the European and Far East markets. There are, however, a number of challenges facing the industry. To retain our competitiveness in the international market, ways of minimizing the cost pressures caused by high-cost inflation, increased environmental protection obligations and a decreasing quality resource base need to be sought. Locally the coal mining industry has a major role to play in Eskom?s goal of reducing the real cost of electricity by 15% in the next three years. Safety and health, productivity and the adaptation of the latest technology are issues being addressed by the industry to maintain its dominant position within the South African economy.

Jan 1, 1997

The latest Draft MPRRB was released for public comment in October 2006. The main purpose of the Bill is to collect royalties at mines developed in terms of new-order mineral rights granted through the MPRDA process. The transition phase stipulated in the MPRDA will be completed by 1 May 2009, on which date mineral royalties will become payable to the state. The royalty rates stated in the MPRRB differ from mineral to mineral and also depend on the degree of refinement. Gold is the subject of this paper, where the royalty rate ranges from 1.5% (for refined gold) to 3% (for unrefined gold) of sales revenue. This royalty is payable regardless of profit, with a maximum 75% relief for loss-making mines. The purpose of this paper is to establish whether or not it would be necessary for gold mines to adjust their mineral reserve statements as a result of this Bill. The methodology is to add the royalty costs stipulated in the MPRRB to the actual quarterly information for the past ten years as reported by the gold-mine members of the COM. The rationale is to investigate the impact this Bill (in its current form) would have had on gold reserves that must be left unmined in the ground because of a higher pay limit. The results of the study point to a significant impact on reserves available for mining with the subsequent shortening of mine lives and retrenchment of workers. Had the MPRRB been effective for the 10 years prior to 1996, it would have resulted in 46 tonnes of gold being sterilised. Stated alternatively, 30 700 workers at COM gold mines alone would have lost their livelihoods.

Jan 1, 2007

By S. Chatterjee, F. Suparno, A. Paithankar

Estimating reserves and quantifying resources stand as pivotal and intricate endeavours within the realm of coal mining operations. Intricate geological formations compound the challenges in resource estimation, thereby complicating reserve calculations. The uncertainties tied to geological attributes of coal, encompassing parameters like tonnage and coal quality, wield significant sway over resource and reserve computations within coal mines. This research delves into the domain of geological uncertainties, with a specific focus on calorific value, aiming to numerically characterise resources and reserves within an open-pit coal mine situated in Indonesia. To quantify resources, the coal seam geometry underwent simulation via a multipoint geostatistical technique known as single normal equation simulation. A geologically established coal seam served as the training image for generating 20 equiprobable coal models. To simulate CV, 50 realisations were generated for each simulated coal seam, utilising sequential Gaussian simulation. Deviations of the simulated coal seams ranged from -0.07% to 5.48% in comparison to the training image. The CV simulation yielded an average value of 5,920.29 kcal/kg, accompanied by a standard deviation of 586.54 kcal/kg. However, the average CV spanned from 5,305.26 kcal/kg to 6,526.55 kcal/kg across diverse simulations. For reserve calculation within the context of geological uncertainties, an algorithm rooted in maximum flow graph theory was employed to construct the ultimate pit for the coal mine. Within this final pit, the average stripping ratio was 1.62, coupled with a CV value of 6,019.66 kcal/kg. When juxtaposed with the deterministic model, the findings underscore that the stochastic ultimate pit delineates a more expansive excavation, accompanied by a heightened undiscounted cash flow.

Oct 2, 2025

By S. Uludag

Spontaneous combustion of coal has been studied by laboratory techniques using an apparatus in a small-scale laboratory testing. Coal?s inherent characteristics can be measured using Differential Thermal Analysis (DTA) and Crossing Point Temperature (CPT) methods. The DTA curve obtained after testing is compared with actual inherent moisture and its effect on spontaneous combustion has been investigated. It has been found that the Wits-Ehac Index increases as the inherent moisture of the sample increases. Therefore it can be deduced that liability to spontaneous combustion increases with increased inherent moisture. In addition, volatiles have a catalytic affect on self heating immediately after the inherent moisture is reduced. This is identified as stage two in the thermogram. The inherent moisture has a cooling effect during the initial stages of testing and is visible in the DTA thermogram. In addition, while an increase in carbon content means an increase in Wits-Ehac Index value, an ash content decreases the likelihood of on spontaneous combustion. Keywords: Spontaneous Combustion, Differential Thermal Analysis, Crossing Point Temperature, Moisture, Coal, Laboratory Testing.

Jan 1, 2007

By R. E. Robinson

I shall present a concept for the development of the resources of this country and its neighbours that repre¬sents a fantastic challenge to our scientists and entre¬preneurs. This concept offers prospects of development that must make our previous achievements seem equivalent only to the first act in a drama enacted on the stage of Southern Africa. I hope to illustrate how, in Act Two, chemistry will play a dominant role, and chemists and chemical engineers will be among the principal actors.

Jan 1, 1980

By S. L. Chen

Keywords: copper, concentrate drying, steam dryer, dryers By placing additional demands on energy and gas flow, the moisture content of a copper concentrate has an adverse effect on the smelting process. Different drying technologies, such as directly heated rotary dryers, flash dryers, and steam dryers, are available to solve this problem. The energy requirements of and off-gas generated from different dryer types are compared. The performance of the steam dryer was found to be superior to that of the others. In particular, the rotary steam dryer and its benefits are discussed. Structural properties confer an advantage on the rotary steam dryer, for wear on tube elements is eliminated, and drying efficiency is improved. If steam is available, the rotary steam dryer is an excellent choice for drying copper concentrates.

Jan 1, 2006

By S. J. Oosthuizen

This paper examines innovation in relation to the availability of anew material: the metal titanium. The paper aims to highlight the need for the inclusion of entrepreneurial innovation as a necessary focus area in the development of a titanium metal value chain. Both the Department of Science and Technology (DST) and the Department of Mineral Resources (DMR) have identified the creation of titanium metals production capabilities as a key growth area for South Africa. Using historical literature as a source of data, the activities of selected innovators who used titanium metal as a central component in their success, were investigated. The origin of the process innovation behind the titanium metals industry, and two titanium product innovations: namely, medical implants and sporting goods, were detailed as case studies. It was found that individual innovators were responsible for the creation, and rapid growth, of the titanium industry and titanium product applications. There is a need to link the current research and development into titanium metals production with individuals and organizations capable of commercializing innovative processes and products.

Jan 1, 2011

By H. Tveit, E. H. Myrhaug, J. K. Tuset

Silicon metal as a commodity material is produced by carbothermic reduction of quartz in electric submerged arc furnaces, where CO2 forms as a by-product. Since 1997 the Norwegian Ferroalloy Producers Association have been engaged in research programmes aiming for reduced CO2-emissions associated with fossil carbon in their processes. One important issue has been to study how charcoal and wood chips perform compared to coal and coke in the silicon process. The ability of the carbon-rich reduction materials to react with SiO-gas is commonly assumed to be of large importance to the performance of the process. Based on laboratory experiments with different carbon materials, combined with estimation of parameters in a mathematical model of the reaction between carbon and SiO-gas, a foundation for a theoretical study of the performance of the carbon materials in a silicon furnace is established.

Jan 1, 2004

By C. Scheffer

This paper describes a model that can simulate the behaviour of a pneumatic intensifier that is generally referred to as an ?air pump? (AP). The AP is used in many South African underground mines, and utilizes compressed air with pressures between 0.3?0.6 MPa to pump water up to pressures of 12?18 MPa. The high pressure water is used in numerous underground mines to pressurize props and roof bolts that act as safety and roof support devices. The simulation model reproduces the intensifier's operation under various conditions and therefore can be used to investigate the AP's sensitivity towards environmental conditions, design parameters (such as spring stiffness, plunger diameter, nozzle diameter etc.) and operating conditions. Model validation by comparison with laboratory experiments showed good correlation. The model can subsequently be used to investigate design changes aimed at improving the AP's performance and reliability over a wider range of operating conditions.

Jan 1, 2005

By A. Lane

The socio economic risks of mining in South Africa have been emerging for some time now, and have been brought into sharp relief by recent events in the platinum sector. The slow pace of social upliftment in the country has lead to widespread social unrest with consequent calls for different forms of resource nationalism. Fundamentally, the key stakeholders are not fully aligned, and are not engaging productively. This poses significant above-the-ground risk to mining companies. Measuring social impact, deploying inclusive solutions and engaging effectively with stakeholders are three ways in which mining companies can mitigate this risk.

Jan 1, 2012

By A. Lebedev

Application of dynamic simulation for a base metal processing plant is discussed. The plant receives ore of variable quality from two pits and blending had to be applied to maximise recovery. The plant employs multiple stage crushing, screening, dense media separation, two-stage milling, flotation and further filtration. Stockpiles and bunkers are used in the plant to cater for breakdowns and operating delays, the latter being appropriately incorporated in the model. A detail dynamic simulation model was constructed from the rock face to the filtration plant to assist the plant design, notably with definition of the ore blending method, sizing storage capacity and in-plant conveyors. The plant model was broken down to capital equipment items and various feed types and mass balances were tested to ensure that the production target is met. The dynamic simulation tested the proposed blending method, identified bottlenecks, produced risk profiles for all strategic storage facilities and overall helped minimise the project risks and improve confidence in the plant design. Keywords: Dynamic simulation, ore grade, blending, capacity, risk profile, throughput, utilisation

Jan 1, 2020

By T. Marin, J. E. Seccatore, M. Cardu

The most energy-intensive process in the mining industry is particle size reduction – comminution. The first phase of this process is blasting to fragment the rock from the initial Boussinesq’s halfspace size. Scientific literature demonstrates that the output of a blast in terms of fragment size distribution can be manipulated by varying the specific charge (powder factor) and charge distribution. This study focuses on the influence of blasting on the internal resistance of the blasted fragments; in particular the influence of the spatial distribution of charges. Small-scale blasts were performed on 14 marble blocks using different powder factors and charge distributions. Three control blocks were fragmented by mechanical means for comparison. The results show the correlations between charge distributions and the specific energy of mechanical comminution. Opportunities for adjusting charge diameter and distribution in opencast blasts to improve the performancet of comminution circuits are discussed.

Aug 8, 2024

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 M. B. Fonseca

Risk quantification in grade-tonnage curves is critical for capital investment in mining projects and can be obtained through geostatistical simulations of orebodies. A practical difficulty may arise in multi-element deposits, as the joint modelling of the related attributes using the traditional co-simulation approaches is computationally intensive and may be impractical for use in the industrial environment. This paper presents the construction of risk-integrating grade-tonnage curves for a complex copper deposit in northern Brazil, by jointly simulating its key geochemical attributes of interest: Cu, Fe and K. The joint conditional simulation of these elements is based on Minimum/Maximum Autocorrelation Factors (MAF). MAF is an approach, based on principal components, that spatially decorrelates the variables involved to non-correlated factors. MAF’sspatial decorrelation at any lag distance is the main and critical difference of this approach from the principal component approach attempted in the past. In the MAF approach, the independent factors are individually simulated and back-transformed to the conditional simulations of the correlated deposit attributes that reproduce the cross-correlations of the original variables. Keywords: Joint simulation; mini/max autocorrelation factors; grade-tonnage curves.

Jan 1, 2003

By Glen Mc Gavigan

The roof of the Sishen cave is being mined in order to exploit 6.8Mt of high grade ore. The cavity is filled with quartzite backfill in order to support the roof in the event of collapse. The cave dips at approximately 37o, is 260m along dip and 70m along strike and has a total volume of 261,391m3. GPS and optical monitoring techniques were attempted to detect subsidence but proved to be impractical. The GroundProbe Slope Stability Radar (SSR) uses differential interferometry to measure sub millimetre movement in a rock face. The SSR was applied in a non production situation and detected subsidences of 38mm/day before visual signs of instability were detected. The rate of deformation detected was slowing as a result of the roof coming to rest on underlying backfill. Monitoring during production drilling detected a sudden subsidence of 18.6mm/hour which resulted in the evacuation of personnel from the area. Further inspection of data showed that the rate of deformation was slowing and production was allowed to continue without further incident. The SSR has helped dispel the fears of workers and has proven that subsidence can be accurately measured and delineated with the SSR.

Jan 1, 2006

By G. L. Smith

This paper consolidates the key elements of seven contributions, on strategic long-term planning, to two of the three international conferences on Strategic versus Tactical approaches in Mining held over the period 2005?2008. The holistic concept of strategic long-term planning as developed and implemented at Anglo Platinum is described. Consideration is given to the planning cycle, principles supporting the construction of the long-term plan, and aspects of unique best practice as developed in Anglo Platinum. Further description of Anglo Platinum?s approach to corporate governance, including the processes, methodology, systems, unique tools and techniques that are applied to value and select capital investment options is also given.

Jan 1, 2009

By R. E. Wilmot

This paper is based on the experiences, over many years, on the part of numerous authors in the South African mining industry and that of the hot dip galvanizing process and its application as a corrosion protection system. The paper sets out the extensive development, financial resources and stringent operating requirements of the South African mining industry. After many years of research and operational experiences, hot dip galvanizing and when necessary, duplex systems, have been found to meet the demanding requirements of this particular industry. The paper sets out the requirements from the standpoint of corrosion criteria and is followed with a practical example; ?case history? where the corrosion protection properties of hot dip galvanizing are demonstrated. This case history traces the early investigation of the expected corrosive conditions to be encountered in a new mining operation (now 10 years on) and concludes with two follow up visits to the mine in order to examine actual performance of the corrosion protection system after ten years in service.

Jan 1, 2006

By L. Schernikau, W. H. Smith

Oil, coal, and gas account for approximately 80% of global primary energy, but only a portion of total airborne CO2 eq (approx. 35% at GWP20 to 65% at GWP100), even though they account for 95% of total measured CO2 emissions. The benefits of these energy sources, as well as their related costs, are not all incorporated in current energy policy discussions. Global greenhouse gas policies must include documented changes in measured airborne CO2 eq to avoid spending large amounts of public funds on ineffective or sub-optimal policies. The authors examined airborne CO2, which is less than half of emitted CO2, as well as reported CH4 emissions and the global warming potential of CH4 as published by the IPCC for coal and natural gas. The surprising conclusion is that surfaced-mined coal appears ‘better for the climate’ than the average natural gas, and all coal appears beneficial over LNG. Therefore, current CO2-only reduction policies and CO2 taxes are leading to unintended consequences and the switch from coal to natural gas, especially LNG, will not have the desired impact of reducing predicted future global warming; in fact, quite the contrary. A large portion of anthropogenic global warming is attributed by the IPCC and IEA to CH4, but it must be noted that CH4 emissions from natural sources and from agriculture account for approximately 40% and 25% of annual global CH4 emissions respectively. Energy accounts for about 20% of documented CH4 emissions. CO2 contributes only approximately 35% of annual airborne anthropogenic GHG emissions after accounting for CH4, over a 20-year horizon. At a 100-year horizon, the contribution of CO2 increases to approximately 60%. Energy policies that do not consider all GHG emissions along the entire value chain will lead to undesired economic and environmental distortions. All carbon taxation and CO2 pricing schemes are incorrect and need to be revised. At IPCC’s GWP20 an approximately 2%1 higher loss of CH4 across the value chain prior to combustion of natural gas versus coal will lead to ‘climate parity’ of coal with natural gas. According to public data, natural gas value chains have high CH4 and undocumented CO2 losses. On a global average, using only IEA-documented CH4 data, natural gas emits approximately 15% more CO2 eq than surface-mined coal, over a 20-year horizon. This difference will increase as the use of shale gas and LNG expands. Investors should support all energy systems in a manner that avoids an energy crisis, including intermittent renewable energy systems where they make sense. If CO2 emissions need to be reduced, one of the most effective ways would be to install ultra-supercritical power plants with CCUS technology. However, the undisputed benefits of increased CO2 concentrations in the atmosphere because of its promotion of photosynthesis and plant growth effects (fertilization) need to be considered in energy policy decisions as well. The authors suggest that future research and development should concentrate on reducing net emissions from fossil fuel power plants and providing cost-effective and reliable new conventional power generation capacity, utilizing clean coal and clean natural gas technology.

Mar 2, 2022

By T. Mwanza, B. N. Belford, P. Conradie

"Metix has introduced a three-piece ’deep-cooled’ copper slag tapblock into a six in-line copper matte settling electric furnace. The tapblock was designed without any internal refractory; it relies purely on the development and maintenance of a freeze lining on its hot face and within the tapping channel to protect the copper and promote the integrity of the surrounding endwall refractory lining. In addition, the geometry of the tapblock further supports the sidewall refractories, reduces the impact of funnelling and, therefore, the need for premature rebuilding of the furnace endwall, and facilitates easy removal and replacement of the wear components even under ’hot’ furnace conditions. Eighteen thermocouples embedded in the copper components ensure full resolution of the copper condition, enabling plant personnel to identify wear rates, estimate freeze lining thickness and stability, and schedule replacement of spares and wear components well in advance.At the time of writing the tapblock had been in operation for 6 months with approximately 350 000 t of slag having been tapped through it. Every indication is that the design will limit the need for premature relining of the furnace endwall due to rapid deterioration of the tapblock and its surrounding refractories. IntroductionNonferrous furnaces rely heavily on the maximization of refractory campaign life to increase profitability and reduce planned downtime. In large electric copper slag-cleaning furnaces utilizing insulating linings, campaign lives of six or more years are realistic if consideration is given to each aspect that can degrade the refractory lining during the campaign. An area that is particularly vulnerable is the slag tap-hole and the local surrounding refractory. To avoid premature relining of the furnace walls, every effort should be made to consider not only the tap-hole design itself, but also the selection of the sidewall refractory material and its construction immediately adjacent to the tap-hole, and furthermore the interplay between the tapblock and this adjacent refractory. A holistic approach to the design that considers these interdependent features in the slag tapping area can reduce the incidence of accelerated refractory wear (‘funnelling’), support the surrounding refractories to prevent their collapse, introduce easily replaceable wear components that can be exchanged with the furnace still ‘hot’, and encourage and maintain a stable freeze lining at the refractory hot face that maximizes the tapblock and refractory lifetime."

Jun 1, 2019