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By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By W. Pulles

Mining can adversely affect water quality and poses a significant risk to South Africa?s water resources. Proactive management of environmental impacts is required from the outset of mining activities in order to reduce this risk. Major strides have been made over the last 7 to 8 years, by both the Department of Water Affairs & Forestry (DWAF) and the mining industry, in developing strategies and management plans for the effective management of water within the industry. This has largely been achieved through the development of joint structures where problems have been discussed and addressed through cooperation. This process, which was started around 1991, has continued through to the present time. The mining sector management strategy has been developed at a number of different levels as follows: ?A detailed Management Plan, that sets out strategic objectives, broad strategies and functional and organizational arrangements. ?Operational Guidelines, that define and document specific operational procedures. ?Technical Guidelines, that define and document best practices for pollution prevention and impact minimization from mining operations. The Technical Guidelines consist of Best Practice Guidelines (BPGs) and Regulations.

Jan 1, 1999

A wide range of materials are used in hydraulic backfilling operations and the pipeline flow behaviour of these mixtures varies considerably. It is shown that despite the large differences in constituent materials and flow behaviour, a common approach can be applied to analysing the flow of all hydraulic backfills. This is extended to include a rational design approach for backfill distribution systems. The use and limitations of pipe loop tests as a design aid is discussed. Backfill quality control is identified as a key area where improvement needs to be made to enhance the reliability of backfill system operation.

Jan 1, 2001

By A. H. Swart

Rock engineering is concerned with the design of rock structures generated by mining activities. Therefore, rock engineering designs have major implications for the safe recovery of mineral deposits and operating costs. The paper deals with a few challenges facing rock mechanics engineers operating in the hard rock underground mining environment in South Africa. Finally, examples are included, which may assist rock mechanics engineers in providing better designs, which could ultimately lead to further improvement in safety and lower operating costs.

Jan 1, 2005

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 Q. G. Reynolds

DC arc furnaces are widely used for steel scrap melting, and are increasingly being used for smelting applications as well. The electrical resistivity of slags varies widely, from highly conductive slags in ilmenite smelting, to highly resistive slags in applications such as cobalt recovery from non-ferrous slags, and nickel laterite smelting. Models have been developed to predict the electrical behaviour of the DC open plasma arc and the molten slag bath. These models allow the voltage and current ranges of furnace power supplies to be specified.

Jan 1, 2004

By L. R. Nelson

A review is presented of the furnace cooling system design and operating developments since the initial furnace start-up in January 2001 of the Chambishi DC-arc furnace to produce ferrocobalt alloy. The furnace operating conditions present a number of challenges to the furnace designers and operators, in particular, to provide a sustainable lining that can withstand the highly corrosive siliceous slag (roughly 50% SiO2). This is exacerbated by the dual requirement of operating this slag in a relatively highly superheated state (?T ?400°C when tapped at 1550°C) to ensure that the ferroalloy can be tapped (estimated 1370°C alloy liquidus temperature) prior to atomization. The core design challenge occurs at the alloy-slag interface, where a single refractory type cannot simultaneously meet the dual requirement of both adequate alloy and slag corrosion compatibility. Progression by the fourth furnace campaign to involve a retrofit of the bath sidewall to HATCH high-intensity, water-cooled, copper Waffle coolers and tap blocks is described. This involves operation of the entire slag bath, the slag-alloy interface and a portion of the alloy within a more chemically compatible refractory/slag (and possibly at times even an alloy) freeze-lining. Due to the high furnace power density employed (up to 500 kW/m2 hearth area), coupled with the large slag superheat needed, the resulting imposed peak bath sidewall heat fluxes are substantial, especially in the alloy (typically averaging 170 kW/m2), and on occasion have exceeded 1000 kW/m2. The performance of the HATCH Copper Waffle coolers under such aggressive process pyrometallurgical conditions is described. Aspects of the design and especially operating strategies to effect sustained production at up to 38 MW power input are also discussed.

Jan 1, 2004

By M. H. Solomon

After the global financial crisis of 2008, African mining is entering anew phase of development. The rapid withdrawal of emerging market funding from the critical exploration and development industries provided a hiatus in funding, a gap which was quickly filled by Chinese and other Asian investors. While the continent is still economically dependent on its extractive industries, the prevalence of Dutch Disease has undermined Africa?s ability to benefit fully from its mining, oil, and gas industries. While the extractive industries are closely related to many of the more fragile and failed states in Africa, it is equally true that the strongest states in Africa have mining-based economies. This paper explores the possible linkages between mining, strong and weak political economies, and poverty in Africa. It draws the conclusion that neither Dutch Disease nor Resource Course is a given in resource-endowed countries, and that it can be avoided if the mining economies in these countries are actively integrated into their respective broader economies and used to foster economic diversification. The author asserts that given the capacity constraints of many African governments, it is contingent on mining companies to become integrally involved in catalysing diversification around their infrastructure and supply chains.

Jan 1, 2011

By S. J. Lötter

Analysis of the major and minor components of raw zircon as well as plasma-dissociated zircon was undertaken using inductively coupled plasma optical emission spectroscopy (ICP-OES). Microwave-assisted acid extraction as well as flux fusion using lithium tetraborate were investigated as digestion methods. Microwave-assisted acid extraction samples were analysed with matrix-matched standards. The most successful microwave-assisted acid extractions yielded 44.3(1), 49.75(7), 78.3(3) and 90.0(7) per cent recovery for Zr, Hf, Al, and Fe respectively using sulphuric acid. In no instance was acid extraction capable of complete digestion of the sample matrix. A standard addition method was applied to the flux-fusion samples due to the high complexity of the sample matrix. Method validation for the flux fusion procedure was performed using the SARM 62 certified reference material (CRM) with acceptable recovery ranges being based on the 95 per cent confidence intervals of the CRM. Successful analyses were achieved for Zr, Hf, and Ti with apparent content of 66(6), 1.7(1) and 0.15(1) per cent respectively.

Jan 1, 2012

By G. Wendel

Uranium is a naturally occurring radioactive material in the earth?s crust. Geological processes have resulted in concentration of uranium into ore mined for its gold content in South Africa. This uranium is present in the form of discrete particles of uranium minerals, generally oxides, which are normally insoluble. Chemical and physical processes during gold mining and extraction, particularly when carried out in conjunction with uranium extraction and sulphuric acid manufacture, act on the uranium minerals and the radioactive decay products of uranium. This may result insignificant accumulations of radioactive materials in certain parts of the process. There are a number of naturally occurring radioactive materials in the earth?s crust, such as Uranium-235, Thorium-232, andPotassium-40. This paper focuses on Uranium-238, together with its decay products, and how they affect the gold mines. Water plays a significant role in the redistribution of radionuclides, both as a physical transport medium, and as a solvent in which chemical reactions take place.

Jan 1, 1998

By B. Larsen, S. Z. Nascimento, K. Fidje, J. P. M. Amaro, H. Gran

Safe and good operation of Søderberg electrodes is dependent upon high quality electrode paste coupled with correct electrode operating procedures. Good electrode performance depends further on proper melting and densification of the electrode paste. The melted paste should form a dense and viscous layer that prevents gasses from the baking process to move upwards. Both paste cylinders/blocks and briquettes can be used, but the procedures may differ between the various types of paste products. For briquette columns the formation of the important viscous layer is obtained through melting and densification of the briquettes. By basic rheological studies of electrode paste and by laboratory tests of briquette beds at isothermal conditions we have achieved a better understanding of the melting process. The effects of temperature gradients, pressure and friction between the briquettes and the electrode casing have also been evaluated qualitatively in pilot scale experiment and in industrial scale tests. The paper shows that melting and densification starts at a considerable lower temperature than the pitch softening temperature. It is concluded that the formation of a briquette electrode column depends on parameters as temperature, briquette column pressure and the friction. Operating conditions influencing the above parameters should be defined and established for each specific furnace operation. Such factors are e.g., charging and slipping procedures, column heating and electrical conditions.

Jan 1, 2004

In extracting base metals from orebodies, sulphide as well as oxide, the main environmental concern is sulphur, whether in the form of sulphurous gases or sulphate in liquid form. Generally sulphur is in over supply in developed countries mainly because of strict legislation to capture it. In developing countries, on the other hand there is usually a shortage of sulphur because of less strict environ-mental legislation. Africa falls in this second category and the African continent imports substantial amounts of sulphur, despite the fact that large quantities of sulphur are emitted by smelters, thermal power stations, coalmines, fertilizer manufacturers and others. Other than making acid from gaseous emissions, existing methods to capture sulphur from gaseous and liquid effluents are uneconomical and it ends up in the environment either as ammonium sulphate (from gaseous effluents) or as gypsum (from liquid effluents). The CSIR?s Environmentek and Key Structure Holdings have developed a process whereby gaseous sulphur emissions and sulphates in liquid effluents can be economically captured and converted into elemental sulphur and metal carbonates. The elemental sulphur is of high purity as it is precipitated from a gas stream and is readily marketable. The metal carbonates (barium or calcium) can be recycled back to the process or marketed. The only harmful by-product of the process is carbon dioxide. Should natural gas or methane be available, the carbon dioxide could be reduced by about one third. Should solar, wind or hydro energy be available to generate hydrogen, the carbon dioxide emissions would be zero. Employing this technology could make Africa independent of sulphur imports and furthermore reduce the impact of acid rain and seepage of sulphate from gypsum and other waste dumps into the environment.

Jan 1, 2005

By C. Sensogut

The phenomenon of spontaneous combustion is one of the major hazards encountered in underground coal mines both from the safety aspects and on economic grounds. Every occurrence, however small, if not tackled effectively in the early stages can develop into open fire, or explosion of gas or coal dust. In terms of economy, even dealing with small incidents may be costly in terms of labour and materials, and in case of a sealing off of a district being necessitated, the loss of face equipment and sterilization of reserves is potentially great. Therefore, expense and effort in prevention and detection of such heating, together with a high state of readiness for dealing with likely event, is completely justified and may be considered as a sound investment. In order to achieve this investment, it may be worth to pinpoint the centre of the fire occurring due to autogenously heating which is supposed to be great assistance to inert it at a least cost and time. Therefore, it is the aim of this work to model the spontaneous combustion in the goaf.

Jan 1, 2002

Outsourcing of specialist and non-continuous services is common practice in international mining operations. There is an increasing trend towards this practice in South Africa as a result of the major organisational changes that have taken place in the industry, and as lower revenues and production cost pressures have reduced profit margins. Many specialist functions have been outsourced in the industry for a long time, an example being shaft sinking, which is undertaken by specialist shaft sinking contractors. In the professional services area, some activities have been outsourced, for example the design and construction supervision of tailings dams, but mining related activities such as geology, mine planning and scheduling, engineering, ventilation, and rock engineering, have traditionally been carried out by in-house staff. In this paper some of the industry problems which have led to an increase in outsourcing of professional services are considered. Then the pros and cons of outsourcing are dealt with before outlining the factors which should be taken into account in choosing an outsourcing partner.

Jan 1, 1999

By J. E. McGill

The junior and small-scale mining sectors in South Africa play an important role in the livelihoods of numerous communities. Mining presents an opportunity, in the post-1994 democratic era, for many individuals to obtain access to much required empowerment and socio-economic development. These sectors are, however, not without numerous characteristics that pose problems for operators, legislators, and other role-players. Mining is inherently risky, with operators experiencing frequent difficulties and challenges throughout the life of mine. Opportunity exists, and needs to be enhanced, for junior and small-scale prospects and operations to include technical risk assessment techniques in documentation presented in search for funding, and in optimizing monthly planning and longer-term functioning. The focus here is to explore how the risk management cycle may currently be applied to a mineral resource suitable for exploitation by the junior and small-scale mining sectors. No management process can create additional value in the ground, but various available mechanisms can go a long way to quantifying the inherent risk that exists, highlighting the need to manage the risks and hopefully allowing the entrepreneur access to the intrinsic opportunities of the emerging mining sector in South Africa.

Jan 1, 2006

By G. Broadbent

It is an honour to be invited as a speaker to this ICCR conference and a pleasure to be with you here in South Africa. I have been asked to talk about the competitiveness of coal versus other energy alternatives. Coal supplies nearly one-quarter of the global primary energy. Its most direct competitors are gas, nuclear and renewables. Oil is predominantly for transport fuels. Fuel oil is competitive with coal when crude is below its long-run average price and has some niche opportunities. But I will confine my comments to nuclear, renewables and particularly natural gas as the most potent current competitive threat to coal. Competitiveness is more than just cost and price; there is environmental acceptability, security or reliability and increasingly image. These factors are more of a spectrum than discrete issues. Dollars and cents remain the key issue for competitiveness but one must recognize the impact of politics in sustainable development and energy security.

Jan 1, 2001

By M. Somerville, S. Sun

The liquidus temperature and viscosity of a range of melter slags produced in South Africa were determined. Drop-quench experiments were carried out on the supplied plant samples to determine the liquidus temperature and phase relations at sub-liquidus temperatures. The temperature measurement range covered 1300°C to 1630°C. Results from these experiments show liquidus temperatures for the melter slags to be in excess of 1500ºC with the chromium containing spinel as the primary crystalline phase. At lower temperatures, an olivine or pyroxene phase co-existed with the spinel phase. The viscosity of the slags was determined over a temperature range of 1350 to 1550°C, under a controlled atmosphere. Results show two orders of magnitude variation in the viscosity (0.2 to 20Pa s) with strong effects of slag chemistry and temperature. Slags with lower SiO2and Cr2O3concentrations were more fluid. Slags with the lowest FeOx and highest SiO2concentrations were the most viscous. These observations are in accord with general behaviour of silicate slags. While the presence of a spinel phase may have an effect on the viscosity of the melter slags, results obtained to date indicate a much stronger effect due to the presence of an olivine or pyroxene phase at lower temperatures. Keywords: phase equilibria, liquidus, viscosity, slags, olivine, spinel, pyroxene

Jan 1, 2004

By Patrick J. Foster

This paper summarises a behavioural safety project undertaken in seven quarries in the UK in order to investigate its applicability as a means of raising the standards of health and safety in the UK quarrying industry. A behavioural safety methodology was developed and trialled at two quarry sites in the UK. During the study the number of unsafe acts and minor accidents had decreased and at one of the quarries there was a 95% reduction in the number of working days lost. It was then introduced at a further five sites of varying sizes and within this focused specifically on lone workers as well as behaviours that affected quality and environmental issues. Positive improvements were noted in most of these operations. The project also looked at the effectiveness of health and safety performance indicators. Here, the common lead and trailing indicators for both safety and health that are commonly used by industry were identified. In consultation with the UK quarrying industry these were then used to identify specific performance measurement criteria that can be used by the quarrying sector to measure performance. Following on from this a quarry specific health and safety management system specification was developed for large and small quarries.

Jan 1, 2008

By B. M. Nyombolo

The interest shown in our paper by Drs Schaekers and Dew, and their favourable comments, are appreciated. However, some of their remarks require a response. Stability testing procedures Regarding the issue of stability-testing procedures, we concur that no long-term procedure has been accepted by either environmentalists or the mining/processing industry as a valid method to test the long-term stability of solid wastes. We agree that the method we used is no exception, and we certainly did not claim that it should be recognized as such. What we did attempt to portray was that we had designed the test procedure in an attempt to simulate, at a very small scale, a tailings dam environment.

Jan 1, 2001

By A. W. Diedericks

Rosh Pinah Zinc Corporation (RPZC) identified implementing a Mineral Resource Management (MRM) programme at the mine as a strategic incentive. The purpose of the programme is to optimize the economic value of the RPZC mineral resource, over the total value chain of the mine, taking expected macro economic conditions into consideration as well. With Mineral Resource Management still being a relatively young drive in the mining industry, information on the concept is relatively scarce. RPZC had several successes and problems with implementing such a concept and also still has a way to go before a complete Minerals Resource Management approach is implemented at the mine and entrenched as a working culture. The purpose of this paper is to: ?define a systems approach to implementing a Mineral Resource Management programme at a base metal mine ?indicate the specific MRM approaches taken at RPZC ?indicate the expected advantages of implementing a MRM approach ?measure the actions already taken against the systematic MRM approach, and indicate the advantages already captured ?indicate the way forward taking lessons learned into consideration ?indicate proposals to implement the MRM approach in the macro mining environment in South Africa.

Jan 1, 2003