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By H. A. D. Kirsten

The structural competence of mesh- and fibre-reinforced shotcrete was investigated in two series of tests on full-scale panels. It was found that uniformly distributed loading was marginally less demanding than point loading, mesh reinforcement was superior to fibre reinforcement, Dramix fibre and Melt Extract fibre were similar in reinforcing characteristics, and 30 mm to 35 mm was an optimum fibre length. Furthermore, the consistency of the fibre content could not be assured on practical mining sites, and an average fibre content of about 1,5 per cent was the maximum that could be obtained for fibre lengths not exceeding 35 mm. Also, owing to its greater flexibility, shotcrete reinforced with diamond mesh was preferable to fibre-reinforced shotcrete in mining excavations subject to squeezing conditions. In view of the difficulties associated with assuring the consistency of the fibre content in mining applications, it appears that the sophisticated attributes of fibre-reinforced shotcrete can be effectively exploited only in civil-engineering applications in which quality assurance is subject to explicit contractual control. Load-deflection curves, together with measurements of compressive stresses in the surfaces of some of the panels, enabled the ultimate flexural strength of reinforced shotcrete to be rigorously formulated, and rigorous design procedures for shotcrete subject to bending and direct thrust to be developed. The application of the procedures is demonstrated in a practical design case in which the moments and thrusts in a tunnel lining are determined in a numerical analysis of the interaction between the lining, the surrounding rock, and the rock-reinforcing system.

Jan 1, 1992

By T. Lee

The mining industry, both here and internationally, is continually developing increasingly sophisticated software to compute mineral resource estimates, but these processes cannot compensate for a flawed geological interpretation of the geology of the economic commodity(s) concentrations. Quality assurance and quality control (QA/QC) is becoming increasingly common in association with the sampling and assaying practices within the industry. However, it is rare in the case of a geological interpretation associated with mineral resource estimation. Why? In the context of this paper, QA/QC relates to the use of statistical and graphical tools to show that the geological economic commodity concentrations have been appropriately domained. Domaining is essential to improve the chance of getting a mineral resource estimate right. Commodity value and acceptable concentration variation within a mineral resource can be ingredients that make mineral resource estimation difficult to get right. But it is possible to get it right a very high proportion of the time. It is more likely to occur when inappropriate data consolidation is minimised. In any case, inappropriate data consolidation is significantly reduced when the geological interpretation is strongly consistent with the data and it is demonstrable. To achieve quality global estimates of geological domain concentrations, it is essential that the geology of the prospect is understood sufficiently that the deposit is appropriately domained. Appropriate domaining occurs when sample populations are separated in such a way that only data in harmony with each other within the population contributes to the domain's concentration estimate. The paper will use four brief case studies to illustrate how QA/QC can be used to display data and validate the underpinning geological interpretation through its associated domaining to get it right when it comes to a mineral resource estimation.

Jan 1, 2007

By L. Shoke

The aim of this study was to develop an in-house tensile testing procedure that would yield accurate and reproducible parameters as input material properties into computational models for numerical simulations of the mechanical behaviour of TM380 mild steel. To achieve this objective, we reviewed the ISO 6892:2009 tensile testing standard along with reported good practice guidelines. Tensile tests were conducted on a dog-bone shaped TM380 mild steel specimen with strain gauges attached on either side, to monitor alignment and measure strain, using three different types of tensile testing machines. Parameters quantified included yield stress, ultimate tensile strength, and modulus of elasticity. The values of these parameters were found to be in agreement with the values supplied by the manufacturer's specification and showed minimal variations between laboratories. Thus it can be concluded that the tensile test procedure used resulted in accurate and reproducible results. The strain values calculated as per standard were in disagreement with those determined from extensometer and strain gauges and resulted in lower elastic modulus values. This confirms that the current testing procedures require the use of long-range strain gauges or extensometer to determine the strain. A chemical analysis was conducted to verify the specification by the manufacturer. The specimen was found to be fairly homogeneous with minor sulphide inclusions. The micrographs reveal a pearlite and ferrite structure typical of mild steel, and the fractographs show a dimpled surface typical of ductile fracture, which is an attribute of mild steel.

Jan 1, 2013

I. Book review Legal and institutional arrangements in minerals development. Edited proceedings of a workshop organized jointly by the VN. Department of Technical Co-operation for Development and the German Foundation for International Development (DSE), held in Berlin in August 1980. London, Mining Journal Books, 1982. Soft, 228 X 149 mm, xi + 223 pp. Approx. R30 + GST. Reviewer: M. J. Martinson 2. New books Strength of metals and alloys (IOSMA 6). R. C. Gifkins (Editor). New York, Pergamon, 1982. Approx. 1200 pp. 3 vols. V.S. $220. Deformation-mechanism maps. The plasticity and creep of metals and ceramics. H. J. Frost and M. F. Ashby. New York, Pergamon, 1982. Approx. 250 pp. V.S. $60. Pressure diecasting, Part 2. The technology of the casting and the die. D. F. Allsop and D. Kennedy. New York, Pergamon, 1982. $ V.S. 27.50.

Jan 1, 1982

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

"The management of outlier grades in positively skewed gold distributions is a contentious issue. Incorporating outliers in standard ordinary kriging (OK) estimation procedures in a way that honours the data without smearing extreme grades into surrounding areas has been problematic. Cutting or capping of outliers to mitigate their influence in estimation techniques is common practice, while methods that manipulate the OK system of equations fail to honour the data. We propose a method of post-processing of kriging weights that provides realistic OK estimates and mitigates smearing without manipulating kriging equations or changing the original grades. The method requires that the data is not clustered, is approximately equally spaced, and is of the same support. Positively skewed data is ordered on attribute grade and nonlinearly transformed to a Gaussian histogram of categorical bins whose frequency is based on their likelihood of occurrence and location in the sample distributions. Factors that restrict kriging weights are calculated by dividing the percentage frequency of data in each bin by the percentage frequency of data in the bin with the highest frequency. Restriction factors applied to the kriging weights in the OK estimation restrict the range of influence in proportion to their probability of occurrence in the distribution. Smear reduction post-processing is easy to implement and addresses issues arising from negative kriging weights while considering the spatial location of samples, the sample grades, and their probability of occurrence. The method mitigates both smoothing and conditional bias.IntroductionOutliers are sample observations that deviate considerably from the standard or expected (Hawkins, 1980). These deviations can be high or low in grade depending on the distribution. The presence of outliers in a mine sampling campaign could provoke mixed reactions. Mining engineers might view high-grade outliers as a promise of achieving higher grades, while the geostatisticians view outliers as affecting the accuracy and precision of the overall estimate, among other issues. Having identified outliers, the geostatistician must decide how to account for their presence and treat them so that true underlying estimates are not distorted. Advanced knowledge of the deposit allows the geostatistician to identify and treat outliers acceptably, especially where samples are limited in number and the true grade distribution is uncertain. If ignored, or treated incorrectly, outliers are likely to lead to smearing of extreme grades into the surrounding estimates, thereby steering regions towards potential under- or over-estimation."

Apr 1, 2019

By A. V. Wilke

The metallurgical balance is a tool usually applied in the mining industry. The final result is used for different objectives. All the existing software for the calculation of the metallurgical balance fits the numbers in such way that a logical correspondence between the input and output materials exist. Nevertheless, the accuracy of the metallurgical balance strongly depends on the quality of the input data. Division El Teniente of Codelco Chile has been optimizing the metallurgical balance system the last 14 years. As well, it has participated in the development of corporate norms to optimize the operations of sampling and weighting systems. As a consequence, the precision and the accuracy of the metallurgical balance have been improved in a significant way. Also the understanding of process variability was enhanced. The improvements have allowed Codelco to discover and minimize hidden losses and to better support top management decisions. The present paper describes the main aspect of the continuous improvement process.

Jan 1, 2009

The current global economic climate has adversely affected the resources industry in general. For the gold mining industry, even though the gold price has been stable as compared to other resources, there is still a need to cut costs even further in order to be profitable and sustainable. Of all the costs that are associated with mining, comminution of ore accounts for the majority. Comminution costs constitute mainly electricity, grinding balls and liners. Of these three components, grinding balls form the major portion of the consumable costs, and can be as high as 40%?45% of the total. As a result, proper grinding ball selection is a key consideration towards reducing mining costs. This paper discusses quality control procedures that can be conducted in order to select the best grinding balls for a particular application. Keywords: grinding balls, forged, semi steel, hardness, chemical, metallography, wear testing, impact test

Jan 1, 2009

By A. K. Verma

Several longwall faces in India have collapsed due to adverse geological conditions and/or inadequate capacity of powered supports. Thus it is imperative to access the capacity of a powered support and its interaction at longwall faces of varying geomining conditions in advance with lots of confidence. To achieve this, an index has been developed to ascertain the front leg pressure (FLP) of chock-shield support and roof-to-floor convergence (RFC) at longwall faces. The index called ?Longwall Face Stability Index? (LFSI) has been developed using statistics and Finite Element Modelling (FEM). The front leg pressure (FLP) and roof-to-floor convergence (RFC) predicted from the LFSI are validated with the field monitored data from two longwall panels. In this study, an attempt is also made to incorporate various geomining conditions into the finite element models typical of longwall mining practice. The index has taken into account the wide variations of geomining parameters like thickness, young?s modulus and friction angle of main roof (small, large), coal type (soft, hard), powered support capacity, and depth of coal seam. Thus, LFSI can be thought of as an index representing combined effect of roof type, geomining conditions and powered support capacity.

Jan 1, 2008

By S. Dessureault

Computer Integrated Mining (CIMG) is a process of using computer networks to transform islands of enabling technologies into a highly interconnected mining system. CIMG involves the integration of advanced technologies at various levels in the mine business to achieve higher flexibility, better quality of processes and control, and improved profitability. Justifying the benefits of CIMG are difficult as many of the advantages are derived from improved flexibility, quality, and control. Justification is based on the evaluation of the benefits to be gained, compared to the required capital investment. Management tools used in mining are currently inadequate in assessing the value of advanced technology whose benefits are primarily qualitative. A key aspect of successful implementation is management acceptance, which has to be won through the capability to justify the technology's financial costs and the true value of all of its benefits. The manufacturing industry faced similar justification difficulties when adopting advanced technology in factories. A significant amount of funding and research was invested into developing management strategies and approaches to justification. Many of the problems that faced the transformation of the manufacturing industry in the late eighties and early nineties are now facing mining. The solutions derived for manufacturing may help mining in its transition to an increased reliance on integration technology. Reviewing the industrial history of computer integrated manufacturing identifies several tools and strategic frameworks that can be adapted for mining. Keywords: Computer integrated mining, justification techniques, CIM, information technology.

Jan 1, 2003

By A M. Garforth

Insurers are hesitant to provide coverage for Open cast Pit side wall collapse, and even the consequent damage to plant and equipment in the pit as well as the resulting interference with the mining operations. After a general introduction to relevant principles of insurance, this paper addresses some of the major reasons for that reluctance based upon the authors? extensive claims experience, examines what limited coverage can still be obtained and looks to the future possibilities. Confidentiality of sources and examples referred to in this presentation is a natural imperative so that a bibliography is not provided but reference is made to relevant sample insurance policy wordings.

Jan 1, 2006

By B. P. Watson

In South Africa, the Bushveld platinum group metal deposits are unique in that they are the largest platinum group metal deposits in the world. These deposits occur as two distinct stratiform tabular orebodies and strike for many hundreds of kilometres. Mining is extensive, with depths ranging from close-to-surface to 2 000 m. The mining method is a variation of planar open stoping. Pillars are widely used to support the open stopes. Crush pillars are commonly used in this role, where the residual pillar strength provides the required support resistance to stabilize the stoping excavations. This paper describes the direct measurement of stress within these crush pillars, and describes the stress?strain behaviour of these pillars. These findings indicate that the measured pillar failure stress is too high. The implications of these findings are that roof damage and pillar bursting could occur, and some examples of this type of damage are shown. The paper concludes that this problem could be mitigated if the three dimensional pillar geometry were modified and the pillars were cut smaller.

Jan 1, 2007

The Annual General Meeting of the South African Institute of Mining and Metallurgy was held in Kelvin House, Johannesburg, on Wednesday, 27th August, 1975. Professor R. P. Plewman (President) was in the Chair. There were present 45 Fellows, 37 Members, 8 Graduates, 3 Associates, 4 Students, and 45 Visitors, making a total of 142. The President declared the Meeting open at 16h00. OBITUARIES The President: Ladies and gentlemen, it is my sad duty to announce the death of the following members of the Institute : M. Barcza, an Honorary Life Fellow and Past President of the Institute; J. A. Boyd, F. E. Keep, and J. H. Taylor, Life Fellows ; I. D. B. Corner, C. O'G. Deane, R. E. Gilmour, A. C. Hofmeyr, M. W. Howell, T. J. Robin, and F. S. Steinhobel, Fellows; J. J. Frankel, Member; and T. J. Higgs, Associate. As a mark of respect to the memory of the deceased and in sympathy with the bereaved, I ask you to rise and observe a few moments' silence. MINUTES The President: May we confirm the minutes of the General Meeting held on March 12th 1975 and published in the June issue of the Journal? Agreed. WELCOME The President: It is now my very great pleasure to welcome the many members of our Institute and all the distinguished guests who have honoured us with their presence this afternoon. In particular, I would like to welcome our Honorary President, Mr R. S. Lawrence, President of the Chamber of Mines, and also our Honorary Vice-President, Mr T. L. Gibbs, the Government Mining Engineer. Ons is ook besonder vereer dat dr. Naude, die Wetenskaplike Raad-gewer aan die Eerste Minister, en mnr. C. A. J. Borman, Direkteur van die Witwatersrandse Kollege vir Gevorderde Tegniese Onderwys, hier aanwesig is om die vergadering by to woon. We are also honoured by the presence of some 19 Presidents, Vice-Presidents, and Chairmen of our sister scientific and technical organizations. I would particularly like to welcome Mr Gericke of the South African Council for Professional Engineers, Professor Pretorius of the A.S. & T.S., and Dr Lloyd of F.S.P.E. And then, also the Presidents of the Institute of Welding, Professor Robinson; of the Electrical Engineers, Dr Troost ; of the Certificated Mechanical and Electrical Engineers, Mr Gibbs; of the Geological Society, Professor Maske; of the Land Surveyors of the Transvaal, Mr Course ; of the Assayers and Analysts, Mr Williams; of the Mine Ventilation Society, Mr Martinson; of the Chemical Institute, Mr Goodman; of the Association of Mine Managers, Mr Pretorius ; of the Institute of Foundrymen, Mr Attenborough; of the Production Engineers, Mr Duggan ; and of S.A.F.U.E.S., Mr Avalle. Then, the Chairman of the Council of the Institute of Metallurgists, Mr Snow; the Vice-President of the Town and Regional Planning, Mr Reinecke; the Vice-President of the Association of Consulting Engineers, Mr O'Kell; and Mr Cronje, who is representing E.A.S.A. Finally, the Chairman of the Southern Transvaal Section of the Chemical Institute, Mr Bloom ; the Chairman of the Witbank-Middelburg Branch of our own Institute, Mr Hosking; and the Secretary-Treasurer of our O.F.S. Branch, Mr Bird. We also have with us Mr Trueman; the Deputy Manager of Kelvin House, Mr Mrost ; our Honorary Editor, Dr Glen; Mr Walford; and also some representatives of the Press. Finally, it gives me great pleasure to welcome those who will receive Honorary Life Fellowships tonight, and also the winners of our student prizes. MEMBERSHIP The President: Ladies and gentlemen, I have pleasure in announcing the names of the following candidates, which have been published in accordance with By-Law 5.2.5., and Council has elected them to membership in the following grades: Fellows: R. G. Boswell, R. W. Chadwick, D. R. Hardman, J. A. Holmes, T. J. B. Jones, and R. P. King. Members : M. A. Bridgeford, C. F. Bonney, H. E. Bartlett, L. G. Floyd, A. K. Haines, D. Hatfield, C. G. Heymann, M. J. Howes, J. B. See, E. van Greunen, and S. P. Swanepoel. Associate Members : J. Coetsee and R. P. G. Steyn. Graduates: J. J. de Villiers and J. C. King. Associates: B. J. Bucher, P. A. Combrinck, W. J. N. Gelderblom, L. S. Halasz, J. van Wyk, C. P. Visser, and A. Veress. Students: D. J. Claasens, P. C. Crous, D. H. Murchison, P. A. Rossouw, and J. P. L. Schultz. Company Affiliates: Airco Engineering (Proprietary) Limited and Deelkraal Gold Mining Company Limited. There have also been some transfers: Member to Fellow: J. B. Nangle. Graduate to Member: E. E. Eichenbergen, M. J. Hillbeck, L. A. Melis, P. J. Venter, and R. O. Wellman. Associate to Associate Member: B. M. Williams. I welcome the newly elected members to the Institute, and I congratulate those who have been transferred to a higher grade.

Jan 10, 1975

By J. M. Stewart

Although the incidence of heat stroke in South African gold mines is small, work continues on its reduction. This paper proposes limits of heat stress that are applicable to South African underground conditions, with the warning that they should not be extrapolated to other situations without careful consideration having first been given to their limitations. These limits of heat stress take physical and physiological considerations into account, and they correspond to there being a 10-6 risk of an essentially nude man developing a rectal temperature in excess of 40°C. It is recommended that further work should be undertaken on the development of equations for the calculation of the heat transfer from clothed men, the derivation of equations that quantify the physiological conductance and sweat rate response of humans, and on establishing the frequency distributions that describe variations in rectal temperature response between individuals in different types of environment.

Jan 1, 1981

By J. Hadjigeorgiou, G. Knox

Since their introduction in 2010, paddled energy-absorbing rockbolts have been widely used in seismically active hard rock mines. This paper provides new data and reviews previous work to quantify the performance of paddled energy-absorbing rockbolts under controlled laboratory conditions. Of significance is the realization that the typical split location in impact tests, at the centre between two paddle anchor points can at best provide an upper limit value. This inherent variability in performance under different testing configurations should be acknowledged and taken into consideration in the design of ground support in seismic conditions. This paper discusses the reduction in capacity of paddled rockbolts as a function of loading angle from a maximum value during axial tests (0° loading angle) to the lowest value during pure shear (loading angle of 90°). A significant reduction in displacement capacity is observed as the loading angle changes between axial (0°) and 40°. Beyond a 40° loading angle up to shear (90°) loading the reduction in displacement capacity is less significant. Due to the variances in the capacity observed through the variance of the testing configuration: loading mechanism, direction of loading, location / presence of a discontinuity, it must be recognized that results from laboratory-based testing are not independent of the testing configuration. This should be acknowledged when extrapolating anticipated performance in the field.

Oct 9, 2024

By R. Sun, R. G. Gillies, R. S. Sanders, J. Schaan

The pipeline transport of paste, backfill or thickened tailings slurries is an important component of the tailings disposal process in many mines around the world. These mixtures contain significant fractions of fine (clay) and coarse (sand) particles, causing them to exhibit non-Newtonian flow behaviour and high frictional pressure gradients. There is often economic incentive to operate these pipelines in the laminar flow regime. Irrefutable evidence has shown that coarse particle settling can occur during the laminar flow of these slurries even when static settling tests show no indication of such behaviour. Previously, a ?rule-of-thumb? minimum frictional pressure gradient of ~1.5 to 2 kPa/m was suggested to ensure effective sand transport, based on the results of tests conducted using viscous Newtonian oils. In this paper, we examine the results of laminar flow tests of non-Newtonian, coarse-particle laden slurries conducted with pipeline loops of 50, 100, 150 and 250 mm in diameter. The results indicate that the ratio of the mean wall shear stress to the mean surficial particle stress is abetter indicator of laminar flow settling tendency than frictional pressure gradient.

Jan 1, 2007

Foamed cement packs offer a viable alternative to conventional timber or other forms of packs for permanent underground support. These packs comprise steel mesh and hoop containment with an outer bag for the grout; woven, laminated polypropylene fabric being ideal for the purpose. The grout is supplied in 25kg bags and fed into a purpose ? designed foam placer machine which delivers the foamed grout directly to the packs from 60 metre long delivery hose. Foamed cement grout as a fill material offers attractive properties for support packs, in summary these are: Variable Grout Strength Grout strength is controlled by the grout density being delivered from the placer machine. This can be changed by the machine settings. Strength Development Fast rate of strength development is possible so that support is available quickly. Pack yield The foamed grouts are compressible so that yielding of the grout pack can be achieved without loss of support. Rate of Filling Three sizes of placer machine are available, these use one, two, or three 25kg bags per minute of grout, pack filling time is therefore a matter of minutes, a typical 0.75m diameter pack x 1.2m high taking some 17 minutes to fill. Tests in a 1000 tonne press have confirmed that the above characteristics can be achieved with foamed cement packs at acceptable cost. This will be illustrated in the paper with experience to date.

Jan 1, 2008

By C. M. G. Wortley, N. Randolph, I. Ralston, R. D. Beck

The ?AMIRA Metal Accounting Project? had its origin in a workshop held in Cape Town on 1 August 2001, with the title ?Challenges in Metal Accounting and Information Management?, which was organised by the Western Cape Branch of the South African Institute of Mining and Metallurgy. This workshop identified the lack of an accepted set of standard procedures for metallurgical accounting as an industry-wide problem. Discussions which followed this workshop led to the initiation of the AMIRA Project P754, ?Improving Metal Accounting?, in 2003. The primary objective of the project was to provide tools for improving the auditability and transparency of metal accounting from mine to product and to facilitate good corporate governance. The planned deliverables of the project were a series of research projects into aspects of metal balancing in different types of metallurgical operations, a Code of Practice on Metal Accounting, and a textbook on the subject which could serve as a guide for metal accounting practitioners and students studying the topic. An additional planned deliverable was the provision of a new variety of professional experts in metal accounting, through successful completion of the research projects. Researchers were engaged at the Universities of Cape Town, Queensland and Stellenbosch and the project was sponsored by five mining companies, including three of the largest global mining groups. Research Program Eight research projects were undertaken as part of the P754 project and these are described briefly here to indicate the scope of the project. University of Cape Town ?Development of a methodology for measurement network design for metallurgical accounting at Namakwa Sands?. This project was based on the Namakwa Sands Separation Plant, with a data rich environment, and involved the investigation of measurement network design through the use of heuristics and the analysis of complex processing circuits. An industry-wide survey of current practice to facilitate the development of an expert system for plant accounting measurements was carried out. ?Metallurgical accounting design at the Waterval UG-2 Concentrator?. The objective of this project is to develop a model for predicting metal recoveries from the different components of a blended ore feed to a plant. ?Optimal measurement network design for metallurgical accounting at Zincor?. This project provided a hydrometallurgical test case for the design and evaluation of a semi-automated optimal measurement network. University of Queensland ?Quantifying the relationship between mine and mill?. This project involved a case study at North Parkes Mine, in which copper and gold ore is tracked from the pit source to the product, as well as a stockpile modelling study. University of Stellenbosch

Jan 1, 2007

By G. E. Rencken, J. H. Potgieter, A. Narain, J. Smith

To conserve fresh water resources and comply with environmental regulations, DRDGOLD, a South African gold producer re-treating surface tailings, has transitioned to a fully closed water circulation system. Consequently, the accumulation of contaminants, as well as addition of reagents, has led to changes in water composition that have compromised leach performance and overall gold recovery. A two-sample t-test confirmed a significant difference in gold recoveries between the use of Rand Water, which was used as a benchmark, and untreated process water. Atomic absorption analysis of ERGO’s process water, confirmed the presence of iron, nickel, zinc, and manganese. A study of the effect of the identified contaminants on gold recovery showed that iron, nickel, and zinc have the largest negative effect on gold recovery, with iron and nickel being more detrimental than zinc. Sulphates were shown to have a possible passivation effect, which also influenced gold recoveries, although to a lesser extent than the heavy metals. Calcium, when present in excess, had a positive influence on gold recovery indicating the possible formation of a calcium aurocyanide complex. Lime softening successfully reduced the heavy metal and sulphate concentrations, and the gold recoveries obtained with the treated process water were similar to those as achieved with Rand Water.

Jul 1, 2021

By P. O. Akinseye, F. T. Cawood

Mineral royalties are one of the oldest forms of mining taxation, and were initially introduced to extract economic rents from mining. Over time, the royalty regime has become more complex as it was identified as an important policy instrument that can achieve more multi-faceted outcomes. Such a multi-tiered approach in the use of the royalty instrument is also the case with South Africa. With South Africa’s new mineral royalty regime now in place for ten years, it is perhaps time to assess its impact and effectiveness. To carry out this assessment, an econometric evaluative study was undertaken using four major commodities in South Africa, namely gold, platinum, iron ore, and coal. The study explored five different policy options for government to consider and tested them to determine the most favourable one that will realize the regime’s policy objectives. After the assessment, two major options stood out. Hence, this paper seeks to highlight which of the two options is the most favourable for consideration by policymakers. Based on that study, we find that the current structure is effective, but also recommend that the factors in the formula for refined minerals be ‘modified’ to reduce the capped profitability ratio from the current 60% to 30% and the maximum royalty rate for refined minerals from 5% to 3%. The minimum rate of 0.5% during times of depressed mineral prices and no or low profitability will not be affected.

Dec 1, 2021