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By Ö. Erdem

The investment decision making process in the insurance and finance industries is affected by new advances such as simulation techniques. These advances have improved the discounted cash flow method (DCF). In DCF, a dynamic and flexible model construction is not possible because it does not consider uncertain conditions. Each project should be evaluated taking into account the related uncertainties because the related uncertainties determine the characterization of the project. Related uncertainties can be processed in dynamic DCF, which is applicable to both financial and non-financial industries with different kind of uncertainties, such as power generation and petroleum projects. The dynamic DCF method can estimate net present value (NPV) while managing related project uncertainties with a simulation method like Monte Carlo Simulation. The simulation method is preferred because its output is unbiased. Therefore, a more realistic financial evaluation of the project can be concluded. In spite of the improvement of dynamic DCF, this project evaluation method is not used frequently in mining industry. However, the mining industry is ideally suited to this concept because it is highly dependent on estimations such as orebody size and ore grade. During the project evaluation stage, these uncertainties can be included with the dynamic DCF method. This study aims to contribute to increasing the usage of this method in mining projects. A copper reserve in Turkey is selected as a case study to apply uncertainty assessment for the evaluation of NPV.

Jan 1, 2012

By A. T. Visser

"SynopsisAlmost 20 years have passed since the cutting-edge research by Thompson and Visser on the design and management of opencast mine haul roads was conducted in South Africa. This system is based on three principles, namely the structural ability to support the ultra-heavy truck loads, the selection of vehicle and environmentally friendly riding surface, and an appropriate level of maintenance to counteract wear and tear. Obviously, proper layout and geometry are essential.These principles have been implemented worldwide, and it is useful to review the lessons learned. The objectives of this paper are to present a critical review of the status of mine haul road design and management, and the impact that these principles have made on operations, particularly the cost-effectiveness. The paper briefly reviews the principles of the haul road design and management and the extent to which they are applicable. Case studies of a number of implementations are presented to demonstrate that the principles are sound and have been applied effectively. For example, at an international operation the transport cost of coal was 40% more expensive than anticipated in the feasibility stage, and this made the mining operation uneconomic. Correction of this problem resulted in a viable enterprise. Although designed for opencast operations, the principles are equally valid for underground operations, and initial development work will be discussed.The main conclusions are that the research approach is valid and its effectiveness has been demonstrated in a number of applications. The anticipated financial benefit has been derived, and has made the mining operations that used the principles more effective. Of major importance is the application of opencast haul road design principles to the future thrust of using driverless vehicles in opencast and underground mining, where the road quality is not negotiable as there is no driver that can avoid obstacles or severe road deterioration.IntroductionAlmost 20 years have passed since the cutting-edge research by Thompson and Visser on the design and management of opencast mine haul roads in South Africa (Thompson and Visser, 1996a, 1996b, 1998, 1999, 2000a). This system is based on three principles, namely the structural ability to support the ultra-heavy truck loads, the selection of vehicle and environmentally friendly riding surface, and an appropriate level of maintenance to counteract wear and tear. Obviously, proper layout and geometry are essential."

Jan 1, 2015

By D. C. Oliver

Paper written on project work carried out in partial fulfilment of B.Sc. (Eng.) (Metallurgy and Materials) degree Corrosion in exhaust systems can occur on both the interior and exterior surfaces. Chloride-containing de-icing salts on the roads in colder countries greatly increases the rate of corrosion on the exterior surfaces. This paper investigates the relative exterior corrosion resistance of three alloys?two ferritic stainless steels( AISI Types 409 and 441) and an aluminized mild steel. The exhaust system is split into two categories?the hot end and the cold end. A test for each of these ends was designed?the standard ASTM G85test was modified to create a simulated driving cycle. The cold end test samples were exposed to ten driving cycles, and the hot end test samples were exposed to five driving cycles. A driving cycle constitutes the car being started from cold, driven until the operating temperatures are reached, and switched off and allowed to cool. Pitting corrosion is the primary corrosion mechanism occurring at the cold end of the exhaust system. The aluminized mild steel was the most resistant alloy in this test, and Type 409 the least. However, once the protective aluminium layer degrades, corrosion will occur rapidly. At the hot end of the exhaust system, spalling of the surface oxide layer is the primary corrosion mechanism occurring. Type 441 was the most resistant in this test, and the aluminized mild steel the least resistant. Potentiodynamic tests were performed on the alloys?the results agreed with the results obtained in the exposure tests.

Jan 1, 2003

By J. Nell

An overview is given of the matte melting process used for the beneficiation of South African Platinum Group Metal (PGM) ores. Most producers use six-electrode furnaces to melt the concentrate and Pierce Smith converters to oxidize excess iron sulphide from the furnace matte. Concentrates from two reef-types (the so-called Merensky and UG-2 reefs) dominate the feedstock supply. Concentrate from the Merensky reef is low in chromium and do not pose significant melting problems. Concentrates from the UG-2 reef contain much higher levels of chromium, which results in the formation of chromium-rich spinels during melting. This is attributed to the low solubility of chromium in furnace slag under typical operating conditions (an oxygen partial pressure of 10-8-10-9bar at temperatures of 1550°C to 1600°C). During the converting process care is needed to avoid excessively oxidizing conditions, which result in cobalt, nickel and copper losses to the slag. High nickel losses result in the formation ofFe2NiO4(trevorite), which often forms solid solutions with FeCr2O4and Fe3O4. In future, the main challenge in the processing of South African PGM ores will be to cope with ever increasing levels of chromium in the concentrate. A short-term solution to the problem would be to melt the concentrate under slightly reducing conditions to promote the formation of CrO, which is more soluble in the slag than Cr2O3. A longer-term solution to the problem would be to abandon the current matte-smelting process in favour of an alloy-based process, which would offer total flexibility with respect to the amount of chromium that can be tolerated in the feed. Key words: Merensky, UG-2, furnace, slag, matte, converting, spinel, chromium.

Jan 1, 2004

Power Point Presentation

Jan 1, 2007

Current mine production planning, scheduling, and allocation of resources are based on mathematical programming models. In practice, the optimized solution cannot be attained without examining all possible combinations and permutations of the extraction sequence. Operations research methods have limited applications in large-scale surface mining operations because the number of variables becomes too large. The primary objective of this study is to develop and implement a hybrid simulation framework for the open pit scheduling problem. The paper investigates the dynamics of open pit geometry and the subsequent material movement as a continuous system described by time-dependent differential equations. The continuous open pit simulator (COPS) implemented in MATLAB, based on modified elliptical frustum is used to model the evolution of open pit geometry in time and space. Discrete open pit simulator (DOPS) mimics the periodic expansion of the open pit layouts. Function approximation of the discrete simulated push-backs provides the means to convert the set of partial differential equations (PDEs), capturing the dynamics of open pit layouts, to a system of ordinary differential equations (ODEs). Numerical integration with the Runge-Kutta scheme yields the trajectory of the pit geometry over time with the respective volume of materials and the net present value (NPV) of the mining operation. A case study of an iron ore mine with 114 000 blocks was carried out to verify and validate the model. The optimized pit limit was designed using Lerchs-Grossman?s algorithm. The best-case annual schedule, generated by the shells node in Whittle Four-X yielded an NPV of $449 million over a 21-year mine life at a discount rate of 10% per annum. DOPS best scenario out of 2 500 simulation iterations resulted in an NPV of $443 million and COPS yielded an NPV of $440 million over the same time span. The hybrid simulation model is the basis for future research using reinforcement learning based on goal-directed intelligent agents.

Jan 1, 2008

By R. M. Goktan

Point-attack picks are one of the most widely used tools for the mechanical excavation of rock and coal. In the literature, some practical formulas have been developed to estimate their performances under varying cutting conditions such as the pick geometry, cutting depth and cutting geometry. In this study, it is shown that Evans?s theoretical model, the most cited in the literature, has serious limitations concerning the changes in the cutting geometry. Analysis of the two independent full-scale linear rock cutting experimental data reveals that both his theory and its recent modification can not fully explain the mechanism of rock breakage under asymmetrical attack. The cutting force predictions made by employing such models are shown to be too significantly weak to be of any service in practice. In this study, a semi-empirical approach was followed by means of which cutting forces under varying cutting geometries could be made. By analysing the full-scale rock cutting test data, prediction equations of the peak cutting force and mean cutting force have been developed. Comparisons of laboratory determined and predicted force values indicate that the suggested prediction equations are applicable to quite different rock materialsm which have uniaxial compressive strength in the range of about 30?170MPa, and valid for different cutting geometries. It is also shown by regression analysis that the established prediction equations are statistically significant.

Jan 1, 2005

By Q. C. Reynolds

Keywords: Pyrometallurgy, plant, photography, GIS, satellite images, Google Earth Google Earth is a piece of software able to display an interactive three-dimensional map of the world, combining aerial and satellite photography with maps, terrain, and user-generated geographical information systems (GIS). Many structural features of the planet, both natural and man-made, are of great interest to the mining and metallurgy field, and in this paper a study is made of the current state of the art of data accessible by Google Earth.

Jan 1, 2006

By C. Nexhip, S. Sun

Critical to understanding and controlling phase mixing and separation in metallurgical processes, is the development of reliable experimental techniques to measure interfacial properties of melt systems. A series of experiments has been carried out to determine the effect of oxygen potential on the surface tension of liquid copper. Using an electromagnetic levitation method, a surface tension-oxygen chemical potential adsorption isotherm was produced for the Cu-O system at T 1400 K. The surface tension results show good agreement with the literature values e.g. within 3 per cent for pure copper. The Belton `ideal' adsorption isotherm was applied, and the following equation derived to best fit the experimental data ? =1251-77.5 1n41+ (2.79x105 . pO1/2)](mN.m Using this equation, the surface tension of copper was calculated/predicted as a function of oxygen potential at 1400 K, and showed excellent agreement with the experimental values. This confirmed that the adsorption behaviour of oxygen in liquid copper is ideal. The saturation coverage of oxygen on the surface of liquid copper was determined to be T0 = 6.65 µmoles.m,-2 corresponding to an area per adsorbed oxygen atom of ao ? 25 Å2. These values agree well with those cited in the literature, and our experimental data cover a very wide range of oxygen potential (10-5 to 10-17 atm). Keywords: levitation melting, surface tension, Cu-O alloys, oxygen potential, adsorption isotherm, surface coverage.

Jan 1, 2004

By J. Madias, E. Benavidez, E. Brandaleze, L. Castella

Knowledge of the physical and chemical properties as well as the behaviour of the mould fluxes during melting, important in order to improve continuous casting operations. Lubrication and control of heat transfer in the mould are the more relevant functions of these materials. Values of physical properties like viscosity and surface tension at melting range temperatures are required, as much as the thermal behaviour under process conditions. The heat extraction from the liquid steel has an important effect in the final quality of products. Mould fluxes are constituted by different oxides, and may form glasses and crystal phases during cooling. The solidification rate and the chemical composition determine the proportion, type and crystalline morphology, which are responsible of the thermal transfer processes. In this paper, viscosity values are reported in the melting range temperatures calculated by means of the Riboud model and compared with fluidity results obtained by the inclined plane technique. Also the linear expansion of the mould fluxes at high temperatures was determined by dilatometry. The crystallization in two different fluxes was determined by DTA tests and correlated with the basicity index. Crystal phases were evaluated by scanning electronic microscopy on quenched samples at 1300°C. This information is relevant to increase the knowledge on the peritectic steel grades casting process in order to improve its quality. Keywords: mould fluxes, heat transfer, crystal phases, peritectic steels, thermal properties.

Jan 1, 2004

By C. S. Chenga

Sustainable development is currently an extremely relevant concept worldwide, especially in developing countries like South Africa. Mining and metals companies are also directly affected by the sustainable development agenda. The Mining Charter?s requirements as well as new legislation (Mineral and Petroleum Resources Development Act) expect, among others, for mines to support infrastructure and poverty eradication projects in the communities surrounding the mines. The aim of this paper is to, against the background of a qualitative study of mining communities in the North-West Province of South Africa, put forward some critical factors for the sustainability of social development projects in the mining sector.

Jan 1, 2006

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

Jan 1, 1999

By L. Andrews

Mineralogy, traditionally associated with concentrator studies, is being increasingly applied to problems in pyrometallurgy. Such investigations commonly make use of a number of techniques, and the results are combined for a meaningful interpretation, which can lead to a successful solution for the problem. Mineralogical techniques are described for various pyrometallurgical operations. Examples are given of studies and investigations involving mineralogy in chemical-looping combustion, feed monitoring to platinum-smelting furnaces, and losses to slag in base metal and platinum smelting.

Jan 1, 2011

[COUNCIL FOR 1991/92 President R.D. Beck President Elect JP. Hoffman Vice Presidents Senior Junior Dr H. Scott-Russell J.A. Cruise Immediate Past President Honorary Treasurer H.G. Mosenthal J.A. Cruise Members of Council Dr N.A. Barcza G.A. Brown B.R. Broekman Prof. RJ. Dippenaar B.R. Fleetwood* J.S. Freer P.R. Janisch P.J. Knottenbelt Dr J. Lurie R.P. Mohring *Co-opted K.C. Owen P.D.K. Robinson D.A.J. Ross-Watt P. Smith K.A. van Gessel DJ. van Niekerk P. van Schaardenburgh* CJ.C.J. van Vuuren* P.M.T. White]

Jan 1, 1992

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 N. Singh

Merensky Reef is mined extensively within the Bushveld Complex. In previously mined-out areas on the Merensky Reef horizon there are pillars, potholes and remnants that have not been mined. These unmined blocks of ground on the Merensky Reef horizon can influence the mining of the underlying UG2 Reef. The extent of the influence will depend on the size of unmined ground and the middling between the two reef horizons. This paper quantifies the influence of partially extracted Merensky Reef on mining of the UG2 Reef, and aims to provide recommendations for mining strategies, as well as regional and local support to achieve efficient and safe extraction of the UG2 Reef, for various middlings beneath the Merensky Reef horizon. In some cases it was found that relatively shallow UG2 Reef mining could encounter conditions similar to those experienced in deep and ultra-deep mining environments.

Jan 1, 2005

The corrosion behaviour of a low carbon steel was investigated in natural seawater and various synthetic seawaters. It was found that the steel corroded nearly four times faster in a 3.5% NaCl solution than in natural seawater for an exposure time of 21 days. The corrosion rate after immersion in synthetic seawaters (ASTM D1141 and Marine Biological Laboratory seawater) is similar to the corrosion rate after immersion in natural seawater. Calcium carbonate (aragonite) deposits were found on the surface of the steel after immersion in natural seawater and the synthetic seawaters. Some magnesium-containing deposits were also found after immersion in the natural seawater. These deposits act as a barrier against oxygen diffusion and thereby lower the corrosion rate. The morphology of the calcium carbonate deposits that formed during immersion in the natural seawater is different from those formed during immersion in the synthetic seawaters. This may explain the slightly lower corrosion rates obtained in the natural seawater. X-ray diffraction also showed that the oxy-hydroxides formed in the 3.5% NaCl solution differed from those formed in the other solutions. Keywords: Corrosion, seawater, low carbon steel, 3.5% NaCl, aragonite

Jan 1, 2006

By B. Tiryaki

Longwall shearers usually suffer from excessive pick and pickholder consumptions and severe wear of the back plate of the clearance ring section of shearer drums. In practice, most of the drums were seen to be withdrawn from the face due to the abovementioned problems, while vane picks and their holders were intact due to the improper lacing design of the clearance ring picks. However, few underground investigations and their results on the effect of lacing arrangement of clearance picks on the service life of shearer drums have been published. Nevertheless, the pick consumption characteristics of shearer drums were not investigated in detail, since these are fewer pick consumptions with shearers when compared to roadheaders. This paper is concerned with the comprehensive in situ trials on the effect of lacing of clearance ring picks on the lifespan of shearer drums, and the pick consumption characteristics of longwall shearers at Cayirhan Coal Mine in Turkey. The lifespan of shearer drums employed with shearers in this mine increased 70 per cent, while the consumption rate of clearance ring picks decreased threefold through using an alternative lacing for clearance picks, indicating the significance of utilizing proper design techniques for clearance ring picks for the service life of shearer drums. Statistical analyses carried out, using the raw pick consumption data, implied that the clearance ring picks experienced much higher loads than vane picks, revealing that special attention must be paid to designing clearance ring picks. An average maximum consumption value of 41 was determined for clearance ring picks, with corner-cutting picks having the most replacements, while it was 35 for vane picks, on three-day based pick replacements.

Jan 1, 2004

By J. Morkel

During research on mainly the weathering of kimberlite, it became evident that its mineralogical composition is an important factor in the complex process of physical and chemical disintegration. The mineralogy of tuffisitic kimberlite breccias from two localities, the Cullinan and Venetia mines, is compared with special reference to the occurrence of associated clay minerals. The clay mineral composition influences the engineering properties of these rock types. It is illustrated how the presence of swelling clay components can be confirmed by ethylene glycol treatment and chlorite minerals by heat treatment using X-ray diffraction. Smectites are present in both tuffisitic kimberlites, dominant at Venetia while chlorite is more frequent at Cullinan. More tuffisitic kimberlite breccias samples from venetia were also characterized. It was found that kimberlite disintegration is correlated with the presence and abundance of smectite.

Jan 1, 2006

By H. Copur

Experimental studies for quantification of force and brittleness indices relevant to rock cutting performance are presented. A simple interpretation method is developed, which quantifies the force-penetration response obtained from indentation tests. Basic parameters of the quantification are force increment and decrementrates, force increment and decrement periods, and number of increment and decrement data points. Blocks of eleven different rock samples were collected from different operating mines in Turkey and subjected to indentation tests to calculate the indices. The samples included harzburgite, serpentinite, trona, limestone, claystone, two different sandstone samples, siltstone and three different chromite ore samples. The concept was validated by a set of full-scale linear cutting tests using a conical cutter for measuring the cutting performance in relieved and unrelieved conditions, i.e. cutter forces, specific energy, size distribution of rock cuttings. The rock cuttings were sieved to determine coarseness index, indicates coarse chip generation characteristics, and size distribution. The force index is moderately correlated with the cutting performance and mechanical properties of the rocks, and poorly correlated with the coarseness index and size distribution of cuttings. A general and moderate trend is observed between the brittleness index and the coarseness index, cutting performance for unrelieved cutting conditions and mechanical properties of the rocks. However, additional data is required to fill the data gaps and to potentially establish relationship between the brittleness index and all other parameters.

Jan 1, 2003