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By J. Zwartendyk, A. Azis

"Every nation must decide how it should exploit its mineral resources so as to contribute most to its national objectives. It is argued that the present value of the future corporate income tax flow derived from mineral exploitation may serve as a useful indicator in moving toward a taxation policy that would contribute optimally toward the greatest public benefit.The future stream of corporate income taxes depends largely on the mineral endowment, consisting of deposits now being mined, known unmined deposits, and unknown deposits.Unknown deposits may be estimated by geological inference. Both known and unknown deposits can be categorized according to grade and size, and divided into economic and uneconomic deposits on the basis of certain prices, costs, rate of return and taxation levels.Computer simulations can be run of discounted cash flow models at various taxation levels to show the impact of taxation changes on future tax revenues."

Jan 1, 2014

By E. Cetin

Orebodies that contain more than one economically important mineral are generally evaluated by parametric cut-off grades. This approach often leads to mis-valuation of mineral deposits because cut-off grades are not based on the grades of each individual mineral and, because of the parametric formulation, are only indirectly related to the individual grade distributions. The only realistic approach is a formulation that accounts separately for each component mineral. The grid search method can be used as a means of multi-mineral cut-off grade optimization in this context. This paper describes the use of the grid search method in cut-off grade optimization for multi-mineral deposits. The authors introduce the general concepts of the method and formulate its application to cut-off grade optimization; they describe a software implementation of the method that can accommodate cut-off grade optimization for mineral deposits that contain up to three economic minerals. Keywords cut-off grade, optimization, grid search, multi-mineral deposits.

Aug 1, 2013

By D. P. Power

The development of an accounting code for the metallurgical industry has been debated for many years. Following the series of tumultuous economic events in the nineties and earlier this century that have affected business, there was much need for legislation to be passed to minimize potential risk. One of the consequences to affect the mining industry was the enhancement of existing geological codes for reporting. In parallel the sponsors of AMIRA have taken the brave step to develop a generic code for metal accounting that embraces the full gamut of industry. In this paper the code will be reviewed in the context of metallurgical accounting as it applies to coal preparation. This paper provides the background for this development and an insight into the mechanism for the debate for the generation of this code. The key elements of the code as it applies to the coal industry are explained but most importantly the key opportunities are highlighted.

Jan 1, 2010

By Peter N. Calder, Alan Bauer

The complexity of modem open pit load-haul-dump systems is described, and the need for realistic working models is pointed out. Both standard and probabilistic simulation procedures are discussed, probabilistic simulation being indicated as the more powerful and practical technique. Acquisition of the necessary pit operating data required for simulator construction and general modelling procedures are described. Finally, results from a typical open pit simulator are used to indicate the scope of the technique.

Jan 1, 2014

By A. S. Nhleko, P. R. Lobe, H. Mtegha

"Government’s equity role in the minerals sector is one of the nationalist measures implemented in order to ensure greater control and management of a country’s mineral resources. This paper evaluates the Tanzanian government’s equity participation in the minerals sector from 1996 to 2015. The research methodology included determination of the number of mineral rights, minimum allowable exploration expenditures in prospecting licences (PLs), and forms of equity role of the government. Data was collected and analysed for PLs, mining licences (MLs), and special mining licences (SMLs).The study revealed a number of challenges faced by the Tanzanian government as regards its equity strategy in the mineral sector. One of the major challenges was the secrecy surrounding agreements and contracts entered into between the government and private sector investors, which were concluded via various business ownership and mineral development projects. This secrecy resulted in non-transparency and lack ofaccountability in the mining industry.The financial benefits accruing to the government were inadequately realized, evident through inconsistent payments of corporate income tax and mining royalties by the mining companies. Furthermore, the government does not have solid mechanisms and frameworks for assessing non-financial benefits, thus it is difficult to measure the impact of these factors.It is recommended that the Tanzanian government review the Mining Act and Regulations of 2010 to include the provision of solid mechanisms and frameworks for all forms of government equity role.This paper is based on an MSc research study undertaken at the University of the Witwatersrand.IntroductionGovernments can grant private companies mining rights to extract mineral resources, or take a stake in the companies as well as establish state companies to oversee their interests in the minerals sector. The establishment of a state company to oversee government interests in the mining sector implies the direct participation of government by way of equity participation. Equity participation or role is defined as the holding of shares in an enterprise, company, or asset by individuals or a body corporate (Otto, n.d.; Brown, 2013; Natural Resource Governance Institute, 2015)."

Mar 1, 2019

By F. A. G. M. Camisani-Calzolari

The uranium production forecasting program described in this paper projects production from Reasonably Assured, Estimated Additional and Speculative Resources in the cost categories of less than $130/kg U. Originally designed to handle South African production, it has been expanded and redimensioned using available published information to forecast production for countries of the Western World. The program forecasts production from up to 400 plants over a period of fifty years and has built-in production models derived from documented historical data of the more important uranium provinces. It is particularly suitable to assess production cavabilities on a national and global scale where variations in outputs for the individual plants tend to even out. The program is aimed at putting the uranium potential of any one country into a realistic perspective, and it could thus be useful for planning purposes and marketing strategies.

Jan 1, 1987

By D. E. Kraushaar

Ruhrkohle in West Germany evaluates and compares the net present values of long-term periods from its coal mines by a computer assisted long-term planning system. Two main parts of this system are computer programs for the prediction of: (a) mineable reserves and their distribution in longwall panels as a function of dependent geological variables; (b) daily outputs and costs of longwall panels as a function of dependent geo- logical, layout and operational variables. This paper describes the investigations, which ended in the above computer programs: ? the collection of information from past workings and their organization in databases; ? the statistical evaluation of the databases, and ? the resulting correlation formulas. The correlation formulas vary the mean dependent variables as a function of independent variables which can be indicated with high reliability for planning projects in the long run. The system thus serves the purpose of facilitating long-term planning and excluding biased individual judgement of local planning staffs.

Jan 1, 1987

By F. Bourgouin

Thirty-one years ago, African leaders met in Lagos for the drafting of the Lagos Plan of Action for the Economic Development of Africa, 1980?2000. The main objective of the plan was to increase Africa?s self-sufficiency and in this regard, the plan had a section pertaining specifically to redressing the ills of an unproductive mining and minerals industry and harnessing its potential for socio-economic development. However, if we look at the nature of this sector on the continent today, its characteristics resemble the diagnosis of the sector given in the plan back in 1980: lack of information on endowments of minerals; lack of value added in the sector; low development and use of those endowments that are not of interest to transnational corporations (TNCs); and most importantly, low contribution to socio-economic development. The primary consequence of the lack of visible benefits to African states, despite growth and development of the sector in terms of increased mining activity led by Foreign Direct Investment is that countries with mining industries are characterized by dysfunctional internal processes. Improvements in governance, monitored with indices such as those set out in the Extractive Industries Transparency Initiative, the Millennium Development Goals, and other such ?good governance? agendas, are being asserted. However, before we prescribe the introduction of initiatives or guidelines based upon highly subjective norms which we believe to fit this diagnosis, it is necessary to review how it is that we got to this situation that we are in today. How is it that, 31 years after the Lagos Plan of Action, we have not seen any major changes in the role the industry can play in socio-economic development, despite the vast increase in mining activity on the continent?

Jan 1, 2011

By L. Dison

There are many potential uses in gold mining for an initially stiff element of backfill that will yield at a predetermined load and maintain that load to beyond a compression of 30%. Such elements could be used as yielding rib pillars, as replacements for more conventional supporting packs, as con- fining bulkheads for mass backfill, as supports to provide lateral constraint, and load-carrying augmentation to overloaded rock pillars. The paper describes a system of reinforced cemented backfill that can be used to provide the above requirements. The necessary characteristics of the reinforcing and the cemented tailings are described together with the method of design to obtain a predetermined stiffness and yield load. The load-compression characteristics of the reinforced tailings elements are described and the effect of changing various of the design parameters is demonstrated.

Jan 1, 1988

By Bosman

Medium suspensions play an integral part in the successful application of dense medium separation for both static and dynamic separators. Although models exist to predict particle movement as a function of medium density and viscosity, these models have been derived on the assumption of Newtonian rheology. Viscosity measurements of medium suspensions have shown that they are non-Newtonian, with a yield stress, and as such cannot be used in the existing models. As a result, medium selection remains an art based upon practical experience and indirect measurements of viscosity such as stability and cyclone differentials.

Jan 1, 2014

Geological mapping makes an important contribution to orebody knowledge during the evaluation of structurally controlled gold veins. Orebody knowledge comprises an understanding of mineralization characteristics relevant to evaluation, mining, processing and environmental issues and allows project expectations to be realistically set. Structural interpretation to define continuity and mineralization controls is a key part of geological risk reduction and the reporting mineral resources using the JORC and other codes. The Dolgellau gold belt is a small British field that produced an estimated 150 000 oz from narrow quartz veins. Historical records, recent exploration and production data, published material, and accessible surface and underground exposure provide a valuable case study. Previous mapping has shown the general geometry of vein systems, but tends to accentuate gross geological continuity. Recent work has attempted to determine internal vein architecture and examine the significance of the historical views of ore shoot controls. The work resulted in the definition of vein continuity scenarios for the gold belt and evaluation expectations associated with each. This has, in turn, led to a realistic view of what can be achieved from an evaluation and project development perspective.

Jan 1, 2009

By D. Lunt

This paper describes and sets in context the commercially proven uranium extraction processes. It also discusses some of the technologies that are currently being pursued with the aim of reducing costs and overcoming a number of technical issues that are faced by process designers and operators. In doing so, opportunities for the transfer of extraction technology from other industries/commodities are identified. The key processing areas that are examined include: ?The influence of mineralogy. The type of uranium mineralization and the nature of its association within a particular deposit will have a major impact on process route selection. Uranium minerals are classified according to their influence on extractive metallurgy. As the uranium price has risen in recent times, so opportunities are increasing for the recovery of uranium from less conventional resources such as phosphates and fossil fuels. ?The opportunities for employing techniques aimed at reducing the capital and operating costs of the overall process such as heap leach and beneficiation. Preconcentration by screening, gravity separation and radiometric sorting can potentially reduce the mass flow to the downstream leach and recovery plants. ?Purification or separation of uranium in carbonate systems. While it is possible to directly precipitate uranium from clarified leachate, the presence of impurities such as vanadium, molybdenum and others may dictate that ion exchange or selective precipitation is employed. Advances have been made in other industries in terms of improved ion exchange equipment aimed at reducing resin inventories and hence costs. ?Separation in acid leach systems. Earlier developments included the use of combined SX-IX systems (Eluex or Bufflex) and the introduction of continuous countercurrention exchange (CCIX). Column SX has found a ready application to uranium in view of the rapid extraction kinetics. With the renewed interest in uranium processing, efforts are being redirected towards further development of resin-in-pulp (RIP) as a means of driving down capital and operating costs. ?Extraction in a chloride environment. Australia and Namibia are desert countries where good quality water comes at a cost. However, both have access to saline water from either the ocean or subterranean aquifers. The issues associated with operating a uranium extraction operation in such environments is discussed. ?Extraction from less conventional sources. Recent price increases for U3O8 have resulted in a number of companies examining the recovery of uranium from sources such as fossil fuels and phosphate deposits. Both of these areas were examined in the 1970s and 1980s and a number of approaches were commercialized. The paper reviews the extraction options.

Jan 1, 2007

By N. Watson

Historically the insurance industry's involvement in any project has been relatively late in the process. Often it was a case of the last item to be ticked off the checklist has been to ensure that the insurance is in place. However, in more recent times insurers have imposed more restrictions on the cover they are prepared to provide, which has in some cases necessitated a change in the contracting structure to accommodate the insurance policy(ies). In addition, changing contractual practices have changed the allocation of risk between the various parties involved. This calls for a more proactive approach to the design and implementation of an insurance program for both the construction and operational phases of any resource project. This paper explores how a risk managed approach to the design and implementation of an insurance program for a resource project can align itself with current management approaches to project development. From the authors' experience, this approach is best adopted early on in the project (often in conjunction with the bankable feasibility study) and follows AZ/NZS4360 to objectively examine and compare a wide range of risk exposures of the project in a time-effective manner across the following areas: ? personnel; ? environment; ? general management; ? compliance - legislation, systems, protocols; ? asset management; ? change management; ? financial impacts to the organisation; ? products/services; ? service delivery; and ? technology. Having identified and then analysed the risk exposures according to common consequence and likelihood ratings the next step is to develop a risk map of all considered exposures. The true value of this approach lies in the development and implementation of a risk treatment plan for identified exposures where the exposure is unacceptable. The plans will lead to the optimal solution to the appropriate risk prevention, risk mitigation and risk transfer options available. This paper also examines other benefits to the project that may arise from adopting a risk managed approach in addition to the ability to design an insurance program which recognises the exposures and the ability of the organisation (and other project parties) to retain risk.

Jan 1, 2007

By S. Kauchali, J. van Dyk, J. Feris, S. Pershad, M. van der Riet, D. Love, J. Brand, C. A. Strydom

"This paper offers an introduction to and strategic context for the other papers included in this special UCG edition of the Journal of the Southern African Institute of Mining and Metallurgy. South Africa is facing long-term energy security challenges, brought about by a myriad of factors that are somewhat unique or exacerbated in the global context. Underground coal gasification (UCG) is a process used to produce synthesis gas from coal in situ, that is, in the coal seam. UCG is an emerging, advanced clean coal technology that offers a potential solution for these challenges, as it can cost-effectively and cleanly liberate vast coal resources in the country that currently cannot be economically exploited using traditional mining technologies. One of the tasks of the South African Underground Coal Gasification Association (SAUCGA) is to advance the development of UCG in South Africa by compiling a technology roadmap. This paper presents the initial findings of the SAUCGA Roadmap (Draft), and contextualizes the technology opportunities and challenges, stakeholders, and provides a basis from which to progress further plans for technology development. Firm development plans and deadlines are not yet possible due to the reliance of the UCG Roadmap on the higher level South African energy policy and regulatory framework. However, the draft roadmap has taken the first step of identifying these policies and stakeholders, and should be seen as the seed from which this embryonic technology and industry can be further developed. IntroductionSouth Africa’s long-term energy security challenges include energy access and affordability, dwindling reserves of accessible bulk primary energy, mounting environmental concerns with all forms of energy generation (especially coal and nuclear), balancing the electricity grid by incorporating an increasing proportion of non-despatchable renewable energy sources, mounting environmental liabilities regarding defunct mining operations, and lastly but by no means less important, fluctuating exchange rates and energy commodity prices.Correctly managed underground coal gasification (UCG) is an emerging, advanced clean coal technology that offers a potential solution for these challenges, as it has been shown to have the potential to cost-effectively and cleanly liberate vast coal resources in the country that currently cannot be economically exploited using traditional mining technologies."

Jan 1, 2019

By A. Holder

A major mud push occurred on the 870 m production level, scraper drift block cave at Dutoitspan diamond mine in November 2011, during which it is estimated that more than 4 400 m3 of mud engulfed the west cave. The production level was successfully evacuated during the mud push with no loss of life or injury to personnel, thanks largely to mine employees being well trained in and adhering to on-mine mud rush evacuation procedures. All access to the west cave was lost as a result of the mud push. Clean-up operations are currently under way to regain access to the production level, to establish the extent of damage to scraper drifts and equipment, and to evaluate what remedial works may be required to resume production. The magnitude of the Dutoitspan mud push necessitated a detailed investigation into the key contributing factors leading up to the incident, which are discussed in this paper. Mud rush mitigation measures in place on scraper drift block caving operations at Dutoitspan, Bultfontein, and Wesselton diamond mines in the Kimberley area are critically reviewed. Recommendations are furthermore made for enhanced mitigation based on mud rush risk profiles derived for different production areas in these old scraper drift block caves. Keywords mud push, mud rush, scraper drift, block cave, mitigation factors, risk profiles, risk management structure.

Jul 1, 2013

By J. Loubser

The concept of caring is in most cases confused with material needs and not psychological needs. By giving employees a job, most managers think that employees should be grateful and return the favour by being loyal, productive and working safely. Other managers hold the view that employees can be lucky to have a job. To show and demonstrate that management are caring for the safety of the workforce requires involvement, dedication and commitment. Obtaining the trust and respect of the workforce should be the main thrust of any organization because within trust and respect lie the secret of optimal safety performance. In the last 70 years, all the fatalities and serious injuries that occurred in the mining industry can be traced back to one thing, non-caring. The same safety non-compliances are still observed, reported and planned against as 70 years ago, and strange as it may sound, the same injuries occur the same way. The question could be asked: Does the mining industry need more risk assessments? More codes of conduct? More engineering. Or does the mining industry need more caring?

Jan 1, 2010

By M. Viljoen

South Africa has produced more than a third of the total gold mined throughout history and remains a major although, until recently, no longer the largest producer of gold. South African gold production peaked in 1970 with an output of 1 000 t, a major component of the western world?s gold production, with the development of the country?s economy having been based largely on this mineral wealth. The costs and difficulties of increasingly deep-level mining, coupled with increasing labour costs and the low gold price until relatively recently, have seen production fall steadily since then, with the closure of many mines including those of the Central Rand Goldfield in the mid seventies. Thus in 1998, only 464 t were produced, with 342 tons being produced in 2004. In 2006, 275 tons of gold were produced and after more than 100 years was the last year as the world?s largest gold producer. In 2008 gold production was 221 tons, making South Africa the third largest gold producer after China (292 t) and the USA (234 t). Gold production would have been lower if it had not been for massive tailings dam retreatment operations that started in the late seventies, including in the Central Rand Goldfield. Mining of a remaining deep and lower grade shallow resources has now also become a major focus and has recently lead to a rebirth of reef mining on the Central Rand Goldfield.

Jan 1, 2009

By D. C. Krige

The estimation of the tonnage and grade of payable ore in a mine and the correct policy of selective mining based on such estimates, is of vital importance to the mining engineer it is surprising, therefore, that more attention has not been devoted on the Witwatersrand to the scientific improvement of mine valuation methods. At present these methods consist almost entirely of the application of simple arithmetic and empirical formulae guided by practical experience, and ignore the many advantages to be gained from a careful statistical analysis of the behaviour of the gold values. The science of statistics has expanded rapidly during the last two decades and its value as a powerful and indispensable tool is now recognized not only by research workers and scientists but also, ever-increasingly, by the commercial and industrial world. This being the case it is noteworthy that in a mining field such as the Rand with its highly developed and advanced mining methods, singularly little attention has been paid to the analysis of mine valuation problems on a modern statistical basis. This omission is even more striking when cognizance is taken of the wealth of sampling data concerning the gold ore which is available and of the far-reaching decisions and deductions constantly being based on such data. Some contributions have however been made from time to time towards the application of statistics to mine valuation on the Rand (References Nos. 7, 8, 9, 11, and 12), but none of these have been generally applied in practice and a systematic practical approach based on clearly deemed fundamental concepts still appears to be lacking. The object of this paper is, therefore, to define these statistical concepts and to indicate briefly the lines along which statistical methods can be applied profitability in solving some of the existing problems and in improving the general standard of mine valuation on the Rand For this purpose a knowledge of mathematical statistics is essential, but as this paper is primarily intended to provide the mine valuator with a practical introduction to statistical application in his field, the mathematics is confined to a short annexure, together with references from which details can be obtained.

Jan 1, 1994

By S. Kahraman

P-wave velocity measurements were carried out on 22 large limestone blocks in a stone processing plant. In the laboratory, P-wave velocity of core samples was measured to obtain intact rock velocity. The square root of the ratio of the velocity of the large stone block to the velocity of the core specimen was called the velocity ratio index (VRI) and a quality classification for large building stones was suggested. In addition, the applicability of the established classification to stone cutting with gang saws was checked. It was concluded that the quality classification and estimation of slab production efficiency of the building stones can easily be made by ultrasonic measurements. However, the study was carried out only in limestone. Further study must be conducted to check the validity of the obtained results for the other rock types.

Jan 1, 2007

A set of six design principles for rock engineering was developed by Bieniawski: design objectives; minimum uncertainty; simplicity of design components; state-of-the-art practice; optimization; and constructability. These principles translate into a ten-step design process. Although this methodology was developed for rock engineering, it is applicable to any design process, feasibility study, etc. Diligent use of such a process will ensure that a defensible design or evaluation has been carried out. Recently a ?strategic conversation? process has been identified by Ilbury and Sunter that includes the following ten steps: scope; players; rules of the game; key uncertainties; scenarios; SWOT analysis; options; decisions; measurable outcomes; and meaning of winning. A comparison of these steps with those of the design process shows a remarkable correlation. This is perhaps not surprising since engineering design is a strategic up-front issue, and front end loading in a project is critical to achieve the expected project performance. Based on the close correlation between the strategic conversation and engineering design processes, a circular design process, rather than a linear process, is proposed. The ?circle of design? better reflects the importance of review and monitoring in the two phases of successful design and implementation?defining the design, and executing the design.

Jan 1, 2009