Search Documents

By C. Nangolo

Mineral commodity prices comprise one of the key criteria in the selection of mining stocks. We contend that of the three principal elements of mineral commodity prices, spot price, forward price and long-term price, one has a greater impact on the share valuation processes used by investors. This research paper examines the extent to which each of these elements influences the valuation process. The intention is to provide investors in mining stocks with a greater understanding of how fluctuations of commodity prices over time affect the prices of the mining stocks they hold, or intend to sell or buy. Three mineral commodities, gold, silver, and copper, were used as case studies, since market data on these commodities is readily available in the public domain. Nine market indices covering all three mineral commodities were selected. These are based on clearly defined criteria with the intention of eliminating ambiguity and to test for correlation with the three sets of mineral commodity prices. Nine mining companies, which were not the primary drivers of the relevant indices employed in the study, were used to validate the results obtained from the indices in order to avoid duplication of the same correlation during cross-checking. Each commodity price was adjusted for operating costs. For each market index, an average operating cost was calculated from the companies comprising its basket, while each company?s annual operating costs were used for the stocks of the individual companies examined. The data was collected for the period January 2004 to October 2010. This period was further split up into three sub-periods to account for the Global Financial Crisis (GFC) period that started in mid-2008. We conclude that mining stock prices are correlated with mineral commodity prices, but with spot and forward prices exhibiting stronger correlations than long-term price. This finding should be useful for evaluation purposes. Where cash flow methodologies such as discounted cash flow or earnings per share are used to value ordinary shares and commodity prices are required to estimate future cash flows, the findings suggest that spot prices should be used as opposed to long-term prices. The work reported in this paper is part of a current MSc research study at the University of the Witwatersrand.

Jan 1, 2011

By D. Bessinger, H. Kotzé, J. Beukes

Keywords: Pyrometallurgy, furnace, ilmenite, smelting, Ticor 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 TiO2 slag and 145 kt/a of pig iron.

Jan 1, 2006

By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009

[The following notations will be used: O an ore body. z a point in O. z' another point in O. w0 (z) a point support of infinitely small dimensions w0 centred in z. w (z) a sample (or block) of finite dimensions kv centred in z. W (z) a block of size W greater than or equal to w. W'(z) a block of size W' greater than or equal to W. W" (z) a block of size W" greater than or equal to W'. x (z) value of the regionalized variable x with support wO at point z. p (z) average value of x in w (z). pw WZ) = E[x(z')l zt in w(z) pw (z) average value of x in W (z). pwl (z) average value of x in W' (z). pwU (z) average value of x in W" (z). Note that pW (z), pw (z), pwf (z) and pw,, (z) are (regular- ized) regionalized variables with support w, W, W' and W" respectively. The relative sizes of wO, w, W', W" and O are represented schematically in Fig. 7.1. The variance of pw (z) when w (z) takes all possible positions in O is known as the dispersion variance of w in O and is denoted by a? (w in O) or a\: 0; = a2(w in a = Ew,z, inn {[p~ (z) - p121. (7.1) For convenience, the following simpler notation will be used: a> Ew in n [(p w - pl21. Consider now a large block W (z) in O with average value p~(z), and all the possible smaller blocks (or samples) w (z') of size w in W (z). We can calculate the variance of the blocks w (z') in the block W(z), which is the dispersion vaciance of w in W (z), from the relationship a2 [w in W(z)l = Ewcz,, in W(Z) {[PW (z') -pw (z)l21. (7.2) Provided the intrinsic hypothesis is satisfied (§3.4.4), this variance is a function only of the dimensions of the supports w and W, and is independent of the position z of the block W (z). We can therefore define the dispersion variance of w in W, as follows: u2 (win W) = Ew in w [(ptti - PW)~]. (7.3) In cases where the intrinsic hypothesis is not satisfied, the variance of samples w in blocks W may vary only slightly from block to block, so that the average dispersion variance of w in W (z) for all possible W (z) in O can be used: ayw in W) = Ew(,, ~n n {a2 [W in W (z)]}. (7.4) The following example will help to illustrate the importance of the variance of dispersion. Assume that we plan to develop a bedded coal deposit Q. We consider mining the ore body with only one giant dragline, which will extract each day a block of coal of size W'. The total area mined in a year will have a size W". We want to know whether this scheme is acceptable, given that the daily variation in ash content must not exceed a given percentage specified in the sales contract, which is renewable on a yearly basis. On a given day, if we mine the block W' (z), the ash content will average pwT (z). In a period of one year, the expected daily variation in ash content is measured by the expected variance of pwf (z) in W", i.e. by a2 (W'in W"). An alternative mining method might be to use two smaller draglines, each one mining W'/2 of ore per day, and Wn/2 per year. If the draglines are used to mine two distinct sections of the deposit, the expected daily variation in ash content will be u2 (W'/2 in Wj1/2)/2 Other situations, where economic decisions cannot be made without knowledge of the dispersion variance, are illustrated in § 7.4 and 7.5 below. Remark: The notation a2 (w in W) is used in this publication because of its clarity. An alternative notation, which is increasingly accepted in the literature, is s2w/W. ]

Jan 1, 1978

By S. A. Hosseini, O. Asghari

"Recoverable mineral resources assessment has become a standard geostatistical application in the mining industry, with various geostatistical techniques currently available. This investigation aimed to improve the prediction at the Sungun deposit and to obtain mineral resource models capable of handling (i) the change of support from drill-hole composites to selective mining units (SMUs), (ii) the multivariate nature of the ore control selection criteria that involves both copper and molybdenum grades; and (iii) the local uncertainty on the true (unknown) grades. The solution presented in this paper is to use direct block-support sequential cosimulation in order to construct a set of alternative outcomes of the copper and molybdenum grades on block support over the deposit, with no need for storing point-support values, hence with a considerable gain in memory management and CPU time. The grade realizations so obtained are then processed to calculate the uncertainty in the mineral resources that can be recovered above given cut-off grades, both globally and on a blockby- block basis. IntroductionGeostatistical methods are widely used by mining companies to determine a resource model of the tonnage and head grade of a potential orebody, which is one of the first and most critical inputs underpinning any mining project. The prediction of the grade, tonnage, and recoverable metal for a particular mining plan and the corresponding financial forecast constitute the main technical risks in mineral resource evaluation. The conventional approach to this problem is to predict the mineral grade for constant volumes relevant to the mining plan and to base the recoverable mineral resource calculations on those predictions. Alternatively, one can directly predict the local variability in the mining block grades based on a spatial distribution model (David 1988; Rossi and Deutsch 2014). Multiple realizations can also be constructed by conditional simulation, providing a more complete representation of block grade uncertainty, as well as the uncertainty over multiple blocks. Simulation methods allow quantification of the uncertainty of the mineral resource prediction risks in downstream studies such as mine design, mine planning, or operational optimization studies; the risk assessment is achieved after applying transfer functions to the conditional simulation models (Dimitrakopoulos 2012; Rossi and Deutsch 2014)."

Jan 1, 2017

By E. G. Galvez, E. Mate, L. A. Cisternas, C. Cruz, L. Cortés, M. E. Osorio

Designing and optimising flotation circuits are critical for mineral beneficiation plants, and therefore several procedures have been published. The modelling of flotation circuits with the objective of design and optimisation is problematic in that different approaches are used for the modelling of flotation units and regrinding units. Usually, regrinding models are based on particles characterised by their size, while flotation models are based on species characterised by fast and slow classes. The relationship between particle size and liberation can be used, but it requires laboratory studies that are time-consuming and costs are high. It is therefore not surprising that few studies on flotation circuit design and optimisation include flotation units and regrinding units simultaneously. In this paper, it is proposed to model the regrinding stage using species characterised by fine-slow, medium-fast, and coarse-slow flotation species. In deep, the regrinding model is derived from a population balance approach based on flotation species. The fraction of these species at the feed and product of the grinding unit is determined by flotation tests. Then, based on these data, the model parameters can be determined by a regression estimation procedure. A local ore was used to validate the model. Keywords: Modelling, flotation circuit, grinding circuit, process design

Jan 1, 2020

By S. M. H. Ahmadi, K. Barani, F. Moradpouri, R. Ghaedrahmati

As exploration is time-consuming, costly, and risky, determination of the erosion surface of a metalliferous deposit before geophysical surveying and exploration drilling might be very helpful. Geochemical haloes can be used to determine whether the erosion surface is supra-ore or sub-ore and thus reduce the risk of exploration operations. The aim of this investigation is to determine the erosion surface of the North ROK porphyry deposit (NRPD) in northwestern British Columbia in Canada using linear productivity (LP), which is the content of an element defining the halo multiplied by the width of the halo. A total of 2045 soil samples from the B horizon were analysed using ICP-MS for 36 elements, including Cu, Mo, Pb, Zn, Au, As, Ag, Ni, Co, Fe, and Mn. The data-set was snalysed to obtain the statistical parameters and the elements Cu, Mo, Pb, and Zn were chosen to calculate the linear productivity and the total linear productivity. These four elements were modelled using probability plots to identify and separate subpopulations in terms of anomalous haloes and background, including the threshold values of each subpopulation. The results of the probability plot modelling and thresholds values were then used to map the distribution of each element in a GIS to calculate the linear productivity. The total linear productivity indicated that the erosion surface is supra-ore. Finally, a 3D orebody model of the Cu, Mo, Pb, and Zn distributions was constructed using borehole data and used to validate the results.

Feb 6, 2023

By B. M. Kunar

It is well known that job-related hazards and individual factors influence occupational injuries. However, research involving coalminers has been limited. This case-control study assessed the relationships of job-related hazards and individual/life style factors with injuries among underground coal miners. It compared 245 cases with at least one injury during the previous two-year period with 245 matched controls with no injury. The data were gathered via personal interview and analysed using the conditional logistic model. The significant risk factors were materials handling (adjusted OR 5.15), poor environmental/working conditions (2.63), geological/strata control-related hazards (2.35), lack of formal education (3.00), sleep disorders (1.86), alcohol consumption (2.32), disease (2.23), having a large family (5.40), and risk-taking behaviour (9.40). Machine-related hazards, sleep disorders and alcohol consumption primarily affected workers aged less than 45 years; whereas, environment/working condition-related hazards, presence of disease, smoking, risk-taking behaviour and large family size were more likely among workers aged 45 or over. Keywords: Occupational injuries, sleep disorders, job hazards, alcohol, coal miners

Jan 1, 2010

By E. Dermietzel

The fundamental ideas of Computer Aided Lignite Mining (CALM) with respect to hardware and software used at Rheinbraun are explained and outlined in detail. The computers used in the main data processing department and in the different departments in the mines are described. Special emphasis is laid upon the network connecting the computers at different places for data-exchange. Concerning technical applications, the main facilities of CALM are deposit and pit modelling, complex geomechanic computations and mass calculations, data recording from the production process in the pits and refining plants, and detailed information and planning systems for water management and mining equipment. Concerning administrative applications, the main facilities of the software are the accounting system with cost controlling and planning, the materials management system with stock control, forward planning and computer supported order procesing, a system for the administration of property within and surrounding the mines, and systems for personnel administration and payroll. The various software systems developed for these application and the influence of data processing technique, such as data base management and the interconnection of data processing systems, are demonstrated.

Jan 1, 1987

By R. V. Ramani

Managers need quality information for effective decision making. This demand, at the present time, is being fulfilled by the increased use of computers via information systems, decision support systems and management information systems. The idea of incorporating intelligence into computers to aid decision-makers has been evolving for over two decades. In recent years, significant progress is reported on applications to business and sciences. In engineering functions, the Artificial Intelligence approach that seems to have great potential is the application of Knowledge Based Systems. The primary objective of this paper is to identify domains in mining engineering where application of knowledge based systems could be beneficial. In- corporation of the expertise required during the analysis and interpretation stages of an engineering design problem through knowledge based systems is recognized as an area of significant benefit. To this end, the components of knowledge based systems for mine ventilation and strata control design are described. The potential applications and limitations of knowledge based systems are outlined.

Jan 1, 1987

By K. Moxham, B. McKeown

The South African gold and platinum deposits were formed in very different ways and yet both have many similarities. They are flat dipping tabular orebodies, extremely narrow and located in hard abrasive country rock. The mining methods employed are also similar. Primary access is via shafts or declines; secondary access is via haulages and cross-cuts; and tertiary access is from raises. The proposed solution for rapid access described in this paper is focused on the haulages and cross-cuts.

Jan 1, 2006

By T. Ellis, J. Gagnon, L. Webb, M. Burr, D. Kakengela, D. Evans, A. Mirza

Lead-based alloys are used as the primary anodes for electrowinning from sulphate-based aqueous systems. Lead anode technology has evolved over the years, migrating from pure lead and lead-antimonial alloys to the present-day lead-calcium-tin alloys for copper electrowinning and leadsilver alloys for zinc electrowinning. Anode technology has also migrated from cast to rolled microstructures in search of improved mechanical properties and higher corrosion resistance. Although great strides have been made in the development of new alloys and production processes, the industry still has unresolved issues related to untimely corrosion, which limits anode life and may lead to higher contaminant levels in the metal being produced. Lead anodes corrode because of the difference in the chemical/electrochemical potential across the microstructural features of an anode. Given a very high purity material, we find that the grain boundary areas corrode significantly faster than the rest of the grain. A balance of alloying element selection and microstructural design allows the grain boundary area to be engineered, thus minimizing grain boundary corrosion. However, operational issues can lead to unexpected corrosion behaviours that we will discuss moving forward. The comments in this work, although directed toward copper electrowinning, can be extended to similar phenomena in other metals electrowon from sulphate media (i.e., zinc, nickel, cobalt, manganese). The life cycle of electrowinning anodes depends on tankhouse operating conditions and maintenance of the anodes, including cleaning and straightening. This paper will focus on the operational aspects of maximizing the utilization of lead anodes for base metals electrowinning.

Jan 1, 2016

By H. L. Zimba

Flotation involves the selective levitation of mineral and its transfer from cell to launder. The flotation rate is the rate of this transfer. It may be defined by the slope of a recovery-time curve for any cell in a bank or at any time in a batch operation. The objective in flotation rate study is an equation expressing the rate in terms of some measurable property of the pulp. This can be either the concentration of floatable mineral in weight per unit volume or a relative concentration, which will be a function of the recovery. A rate equation for an actual flotation pulp will contain at least two constants, both to be determined from the collected data. The data used in this paper were collected from bench-scale flotation tests on Konkola primary mill cyclone overflow at various pulp densities and pre-flotation thickener underflow at a pulp density of 35% solids by weight.

Jan 1, 2009

By R. M. Kear

The Mine Planning Department of Rio Tinto Management Services South Africa has installed an interactive graphic work station to assist with the long- term mine planning of Palabora. Previously, the planning was drafted manually after which digitised areas were fed to the computerised ore reserve system. This method was slow, tedious, prone to error and was becoming incapable of meeting new planning parameters. To assist the planning engineer an interactive graphic system was developed, and subsequently a rewrite of the ore reserve reporting system was incorporated. The work station has reasonable computing power and, when not utilised for graphics, has been found suitable for the evaluation of various non- graphical applications, a recent example of which was the in-pit crusher investigation. This project, in contrast to similar studies, was not based on a fixed system throughput but rather on a well designed system which would be operated at its own optimum capacity. In order to determine the probable throughput a simple simulator was designed to model the crushing and conveying system. This paper describes the investigation into the specifications for the work station, the selection of hardware, operating system and languages. An over- view is then given of the graphic planning system. The in-pit crushing simulation has been included as an example of how the work station has been applied to other, non graphical, applications.

Jan 1, 1987

By N. Steven

Published parameters from the Mufulira copper in situ leach (ISL) in Zambia are used for order-of-magnitude flow-rate calculations for an envisaged gold ISL in back-filled Witwatersrand stopes. A successful leach operation requires that the porous medium, usually a sand, has a hydraulic conductivity in excess of 5 x10-7m/second (i.e. a permeability >50 millidarcies).Empirical evidence suggests that average linear velocities would be of the order of 60 m/day if the backfill has the grain size of a fine sand. The proposed gold lixiviant would probably be an alkaline or ammonium thiosulphate, not cyanide. The resultant sulphate-rich ground and drainage waters could probably be processed using existing purification techniques to produce gypsum and magnesium/calcium carbonate. Within the next 100 years it is inevitable that solution mining will find widespread application on the Witwatersrand, if not for gold extraction, then certainly for water remediation purposes.

Jan 1, 2009

By C. Rodrigues

This investigation compares the gas adsorption behaviour and capacity of three bituminous coals from South Africa, of similar rank, by assessing the characteristics of the raw coal, as well as the resulting float and sink fractions (at 1.80 cm3/g) obtained by density separation of crushed coal samples. Calculations were also made to obtain the raw coal gas storage capacity from the weighted contribution of both float and sink fractions results, thereby permitting comparison with the analysed results of the raw coal. The study demonstrated that the clean fraction of a coal has the highest capacity to retain gas in the sorbed state, followed by raw coal, and lastly the sink fraction, and re?confirmed previous investigations that showed minerals to be inhibitors of gas adsorption and retention.

Jan 1, 2008

By P. A. P. Fouché

Processing confidence for a bankable feasibility study on a green field heavy mineral deposit is inmost cases achieved only through bulk sample processing. Bulk sample is classified as a large enough concentrate sample that is processed into final products to satisfy market sample demand as well as further processing demands such as smelting. In this case study the demand was to produce 500 tons of heavy mineral concentrate from more than 5 000 tons run-of-mine on are mote location with limited to no infrastructure. The various challenges faced and lessons learned are documented as an outcome of the success of this mission.

Jan 1, 2007

By S. J. Moema, M. G. Maruma, L. A. Mampuru, M. E. Maja

"The most commonly used high-chromium white cast iron (HCWCI) is the hypoeutectic white cast iron that contains 2–3.5 wt.% C and 10–30% Cr. This type of material relies on hard, brittle M7C3 carbides to impart good wear resistance. Due to its good wear resistance, this material has found application in the mining industry and cement industry. However, it has low fracture strength and this challenge led to research aimed at refining the microstructure. This was done by the addition of niobium in the range between 0.1 and 0.6 wt.%. In the as-cast condition, the addition of niobium was found to increase the fracture strength due to the finer eutectic microstructure. The hardness was also found to have increased slightly compared to the reference alloy with no niobium additions. Low fracture strength after heat treatment was observed in the Nb-added HCWCI, which is believed to have been caused by the precipitation of secondary carbides and the transformation of the matrix from austenite to martensitic. IntroductionFor the past few years Mintek has been involved in a project in which a number of alloys have been identified for grinding media applications. The high-chromium white cast iron (HCWCI) alloys were among the alloys researched for this application. The knowledge acquired from the grinding ball media research has now been extended to mill liners, which have traditionally been made of manganese-, chromium- and chrome-molybdenum steels. The replacement of worn mill liners costs the mining industry a significant amount of money and this has led to a need for continuous research to prolong the life of the liners. During milling operations, liner wear has an adverse effect on the capacity of the mill, the energy efficiency and milling efficiency and finally leads to relining, to replace worn liners."

Jan 1, 2016

By E. Molobi

"Studs are rods threaded on both ends and are used as mechanical fasteners for two or more components. Stud finds usage in industries such as automotive, construction and aviation. The advantage of studs is that they allow for disassembly of components during maintenance. Studs are continuously subjected to both tensile and shear stresses, depending on the application, therefore they should be manufactured from suitable materials that are capable of withstanding all these external forces. Studs are sometimes manufactured from re-sulphurized steel due to its improved machinability; however, there is a certain limit on the amount of sulphur, above which failure may occur. Premature failure of studs has been a common problem, but failed studs are commonly replaced with new ones without conducting failure investigations. The present work investigates the premature failure of two re-sulphurized steel studs used on a rocker arm assembly and recommends alternative materials. The investigation was carried out by conducting visual examination, microstructural analysis, hardness measurements, chemical analysis and a detailed scanning electron microscopy (SEM) investigation on the fracture surface.IntroductionTwo rocker arm studs used on a 16-cylinder diesel locomotive engine failed prematurely after being in service for less than 5 months. The rocker arm studs had a life-cycle of 5 years. The studs were manufactured from resulphurized steel. The paper aims to establish whether re-sulphurized steel is applicable for the manufacture of studs in the automotive industry.BackgroundLocomotives are classified as either electric or fuel-powered. Diesel locomotives are an example of fuel-powered locomotives. This type of locomotive uses a diesel engine as a means for propulsion. An engine converts chemical energy into mechanical energy required for traction. In an internal combustion engine a rocker arm is an oscillating lever that conveys radial movement from the cam lobe into linear movement to open and close poppet valves of cylinders (Husain and Sheikh, 2013). The rocker arms are secured on to the cylinder head by rocker arm studs."

Jan 1, 2016

By P. Jordan

The practice of ilmenite smelting in electric arc furnaces has been researched and published over the last few decades. An issue that has not been addressed is the understanding of the properties of ilmenite smelting reductants, and linking these properties to the subsequent smelting behaviour in the furnace. The reduction mechanism of ilmenite smelting is not fully understood, but it is believed that the Boudouard reaction plays a role. This paper investigates the behaviour of a number of reductants when reacted with CO2 at different temperatures. Keywords Boudouard reaction, carbon reactivity, reductants, ilmenite smelting.

Jan 1, 2011