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By E. V. Lilford

Valuators of mineral properties are faced with a range of valuation methodologies, the most important of which are grouped under the headings of the market approach, the cost approach and the income approach. The way in which value is defined and the detail of the different valuation methodologies is examined here. This paper aims at documenting the variety of valuation procedures and applying each method to a variety of gold projects and comparing the outcomes. Any decision to apply a valuation technique will depend principally on the stage to which the project has been developed. The valuation approach to a greenfield project will be substantially different from that applied to a well-drilled, extensively explored mineral property. Furthermore, a valuation exercise may produce different outcomes for the same gold project depending on which method is applied. In order to investigate the variability in valuation methods and to explore the outcomes of different approaches, a series of five gold projects was analysed. The projects differ in regard to levels of capital application, infrastructural setting, depth below surface, in situ grade, and the stage of development, and were valued using the different methods. The most critical aspect of any valuation is the capacity of the valuer to identify the salient issues and ensure that they are incorporated into the valuation. The danger of simply applying ?black box? solutions to valuation problems without a full understanding of the parameters and the areas of uncertainty is emphasized. The importance of the valuator?s experience, insights into best practice and the ability to recognize and submit to the requirements of compliance within the minerals industry is among the most important characteristics of a valuer.

Jan 1, 2005

By M. K. G. Vermaak

There are practical indications that flotation recovery of palladium bismuth tellurides is poor. This work tested whether this can be caused by a lack of interaction of the collector with the telluride. Impedance measurements, voltammetry and Raman spectroscopy were performed to determine the interaction of dithiocarbonate collectors (KEX) with Pd-Bi-Te. Impedance measurements showed lower capacitance values in solutions containing KEX, indicating the formation of a continuous surface layer. Anodic and cathodic polarization diagrams show the mixed potential to be higher than the reversible potential of the xanthate-dixanthogen equilibrium reaction; hence the formation of dixanthogen on the surface is possible. Electrochemically controlled in situ Raman spectroscopy did indicate the presence of bulk diethyl dixanthogen on the surface. Raman spectroscopy has confirmed the co-presence of xanthate with dixanthogen, indicating that xanthate retains its molecular integrity when it adsorbs on the surface of the Pd-Bi-Te. As a result, the mineral surface is expected to be hydrophobic and alack of collector interaction with the mineral is not the reason for the low PGM recoveries experienced. Keywords: Raman spectroscopy; Pd-Bi-Te; ethyl xanthate; platinum flotation; Great Dyke; Pd-bearing bismutho-tellurides and moncheite.

Jan 1, 2004

The aim of this research was to study the absorption characteristics of thermally dried fine coal from South African collieries. After milling to ?150 µm and pressure filtration, the samples were subjected to either air drying or thermal drying at 150°C. The samples were then put into a climate box at 28°C and at three different relative humidity levels, namely 30, 60 and 94 per cent. It was found that the equilibrium moisture content of thermally dried coal at a specific relative humidity was lower than that of air dried coal. The relationship between the equilibrium moisture content and relative humidity is described by 1 ? RH = exp (-KTMen). There was no relationship between the volatile matter content and equilibrium moisture content, but there was an increase in the equilibrium moisture content of the coal with an increase in mineral content. The moisture uptake rate increased with an increase in temperature and a decrease in particle size. A model is discussed that fitted the experimental data and gave a good prediction for changes in the conditions. There was no evidence of greater moisture absorption by thermally dried coal. Keywords: Fine coal, thermal drying, drainage, South Africa, drying

Jan 1, 2002

By P. J. Bhonde, R. D. Angal

Conventionally low carbon ferromanganese is manufactured globally by refining high carbon ferromanganese in liquid state. This process is an expensive and lengthy technique. Hence, the present work was undertaken with the objective of understanding the feasibility and kinetics of the solid state refining of ferromanganese. The process involved transformation of carbon rich carbides viz. Mn3C2, Mn7C3 into metal rich carbide i.e. Mn15C4, Mn23C6 by subjecting the alloy powder to a flowing stream of carbon dioxide. Effect of the process governing parameters such as time, temperature, particle size, pressure on the extent of decarburization was studied. Without any loss of manganese in the form of fumes or slag, it was observed that, there was substantial reduction, viz. 65 per cent in the total carbon content, by this technique. Subsequently, the process was investigated to find out the mechanism of carbon removal. Depending upon the temperature and the particle size, it was found that the rate controlling mechanism changes from chemical reaction control to product layer (ash) diffusion control. The activation energy for each of the aforesaid mechanism was computed. The values thus obtained substantiated the aforesaid mechanisms.

Jan 1, 2004

By A. S. Macfarlane

The South African Institute of Mining and Metallurgy was approached by the Australian Institute of Mining and Metallurgy to present a paper on the current practice in terms of the valuation of mineral projects and properties, given the development of a Code for the Valuation of Mineral Properties, developed in Australia (the VALMIN Code), and a similar Code in Canada (the CIMVal Code).This paper is the result of research and investigation into the matter, in terms of the reporting of Mineral Resources and Reserves, financial reporting practice, the Listing Rules of the Johannesburg Securities Exchange, and various practices in valuation. The paper establishes that a strong linkage has already been established between the SAMREC Code for the reporting of Mineral Resources and Reserves and the Listing Rules, and that, for completeness, a Code for Valuation needs to be developed. This Code will be similar to its international counterparts, with the necessary inclusions which are relevant to South Africa, and will provide guidelines and definitions on matters such as transparency, materiality and competency in valuation. It proposes that a multi-stakeholder steering committee be established under the auspices of the SAIMM, to deliberate and design a process for establishing such a Code.

Jan 1, 2002

By B. Unver

Effective strata control is a prerequisite for maintaining an efficient mining operation. If the strata in the vicinity of an opening are not controlled effectively, it is impossible to perform a safe, efficient and economical operation. In this paper, the reasons and outcome of instability problems observed in roadways opened in clay and marl at the Bolu Colliery of Yeni Çeltek Establishment are investigated. Roadways under examination were located in a syncline causing high residual tectonic stresses. Factors affecting the instability have been studied thoroughly by examining geology and tectonics of the area, establishing convergence measuring stations to understand in situ behaviour of supports and laboratory tests to determine engineering properties of samples taken from nearby convergence measurement stations. As a conclusion, a new production strategy and a new support system are recommended to maintain stability.

Jan 1, 1999

Council for 1996/97 President Dr N.A. Barcza President Elect R.P. Mohring Vice Presidents Senior J.R. Dixon Junior M.H. Rogers Immediate Past President D.A.J. Ross-Watt Honorary Treasurer J.A. Cruise

Jan 1, 1997

By J. B. Oosthuizen

Mechanical rock breakers are used in block caving operations to reduce the size of ore fragments which are too large to pass through grizzlys at the load-haul-dumper tipping points. Several layouts of grizzly, rock breaker and ore pass are possible. The authors evaluated three different layouts at the Premier Mine Division of De Beers Consolidated Mines. The first layout consisted of a 15m surge bin before the breaker, which was located 15 m below the production level. The second layout had a 43 m longs urge bin, with the breaker located 43 m below the production level. The third layout did not have a surge bin, the breaker was located on the production level and operated at the tip. The ore throughput, availability and utilisation, delays, costs and operational experience with each system are discussed. It was found that the rock breakers did not represent a bottleneck in the ore transfer system and a surge bin did not significantly improve the production capacity. The mine has decided to make use of rock breakers situated on the production level, breaking rocks at the tip.

Jan 1, 1997

By F. T. Cawood

One of the consequences of globalizing mine finance is a necessity to apply uniform accountancy and valuation standards that are clearly understood and consistently applied by the global investment community. However, each country has unique circumstances, which sometimes make it difficult to align domestic practice with international requirements. South Africa is no exception and issues such as its political history, a taxation regime enforcing different rules on different mineral producers and a unique mineral rights ownership distribution, are barriers to internationalization. The economy is in a transitional phase as a result of the many and diverse policy documents following the change in political dispensation in 1994. Many of these documents have recently been implemented through new legislation and, in the case of mining, negotiations are continuing in order to ensure an acceptable outcome. This paper discusses the challenges that the South African minerals industry faces in the field of mineral property valuation. It draws on international experience and includes a discussion on the unique considerations that the South African mineral property market must take into account in establishing a code for this purpose, as such a code could later be aligned with international practice.

Jan 1, 2004

By E. Yan

Electrostatic separation has been a mainstay of minerals sands flowsheets for over 50 years. Recent electrostatic developments have shown better conductor/non-conductor separation than technology previously available. Results to date show significantly increased separation efficiency over prior-art high-tension roll electrostatic separator (HTR). These improvements allow greater simplification of MSP circuits by minimizing re-circulating loads. The distinct features of the eForce include: 1) A provision that minimizes the affects of particle size to improve separator performance, 2) an enhancement of the design and arrangement of the static electrode providing a greater attraction force for separating fine conductive particles, and 3) inner roll and outer plate electrode configuration to improve separation efficiency and throughput capacity. Key Words: eForce, Electrostatic, Ion bombardment, HTR, Separation Efficiency, Electrostatic Classifier

Jan 1, 2003

By J. -P. Chilès

The discrete Gaussian model is a very popular change-of-support model for estimating block grade distributions. It is designed for a stationary random function Z(x) that is regarded as the transform of a stationary random function Y(x) with Gaussian marginal. It is based on an assumption that is not fully true and thus constitutes an approximation to the exact solution. We examine the effect of this approximation on the modelling of the marginal distribution of block values of a lognormal random function. The initial discrete Gaussian model and a variant of that model are considered.

Jan 1, 2014

By B. M. Nyombolo

Mintek has been involved in the development of bioleach technology for many years, initially for refractory gold extraction, and more recently also for base metals extraction. Mintek, in collaboration with its Australian technology partner (BacTech), is the technology provider for the Beaconsfield refractory gold bioleach plant. At present Mintek, BacTech and Peñoles are constructing a demonstration bioleach plant for copper-zinc concentrate treatment. Bioleach liquors produced in all applications have to be neutralized. In the copper-zinc case, neutralization is required for bleeding iron from the circuit and for adjusting the pH value ahead of solvent extraction. In the refractory gold bioleach circuit, neutralization is required for producing a stable iron-arsenic residue. Some of the challenges encountered in each of these neutralization applications are discussed, and examples of results obtained are presented.

Jan 1, 2000

By S. Kahraman

The correlations between the modulus ratio and penetration rate of rotary and percussive drills were statistically investigated using the raw data obtained from the experimental works of different researchers. An inverse power law was found between the modulus ratio and the penetration rate of rotary and diamond drills. The penetration rate of rotary drills and diamond drills decrease with an increasing modulus ratio. The penetration rates of percussive drills increase with an increasing modulus ratio. There are significant linear correlations between the penetration rates of percussive drills and the modulus ratio. In one of the cases of percussive drilling, a strong correlation between the penetration rate and the modulus ratio was found for the rocks having a porosity value lower 1.23 %. It can be concluded that the modulus ratio might be a representative measure of rock drilling efficiency. However, further study is necessary to check the validity of the derived equations for other rock types. The effect of porosity on the correlations between the modulus ratio and penetration rate needs to be further investigated.

Jan 1, 2003

By I. Benning

Since the dismal performance of the Rand Mines management was called to account by its shareholders in 1994, the waves of change have continued to ripple across the South African mining industry .The number of listings on the gold board of the Johannesburg Stock Exchange, that once numbered 40 or 50-odd, have now dwindled to no more than a handful as unprecedented restructuring has taken place. The redefining of the industry has not been limited to the gold sector, but across the base metal, coal, diamond, platinum and industrial mineral sectors as well. At the same time the Mining Houses began to reconsider their funding strategies. Originally established in the early part of the century to ensure the long-term sustainability of their group mining operations by providing substantial financial muscle and technical support, the Mining Houses were faced with a rapidly changing political environment, which proved to be a critical catalyst in giving momentum to the change. Furthermore, the significant development costs and increasing risk profile for new projects, coupled with pressure from shareholders demanding respectable returns, opened the door to opportunities for banks to begin providing external debt by the way of project finance. However, the provision of long-term debt to the South African mining industry had generally not been common since mining companies had financed new projects with equity, or with the cash flows from existing operations. Those banks that had the appetite for exposure to the perceived high risks of the mining sector rapidly built up specialist resource banking divisions capable of addressing the increasing demands of the industry. The application of project finance, the principles of which were developed in the 1970s specifically for infrastructure projects and privatization, is now commonly applied in the financing of greenfield and brownfield mining projects. This paper outlines the approach that lending banks would typically adopt when arranging or providing mining project finance, their usual areas of concern and the way in which the finance is structured to mitigate the many inherent risks.

Jan 1, 2000

By A. H. Swart

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

Jan 1, 2005

By F. T. Cawood

The definition of mineral rents has historically been somewhat unclear, but a growing understanding of the source and composition of the revenues that comprise these rents mean that they can be more easily identified and quantified. Furthermore the way in which the flow of the rents from mineral developments are captured and then distributed has been a point of contention amongst the various stakeholders. Investors, the host government, the resource owners, environmental interests, indigenous groups and land owners are identified in this paper as the principal participants in mineral development and while each is entitled to a portion of the rent, the size of their portions will differ. A competitive rent-sharing model for southern African countries has been established and indicates how the range of stakeholders could be rewarded for their contribution. Acceptance of the sharing ratios amongst the recipients is a function of their understanding of the size of the rent and their position in the hierarchy of stakeholders. At first glance investors appear to receive the largest share of the rent, but they disburse some of the rent to hidden costs, which when all is said and done, means that investors and host governments retain approximately equal shares of the mineral rent. Both the investor and government are faced with the dilemma of how to equitably distribute the rents they have captured to minority stakeholders. Government captures corporate tax, mineral royalties and a wide range of subordinate taxes, but is required to construct policies that will ensure distributional equity among the various levels of government as well as among the provinces that comprise the country. Investors will have to ensure that a portion of the rents they capture are diverted to other stakeholders namely resource owners, environmental interests, indigenous peoples groups and the landowners. This paper identifies the major recipients of rent and provides some indication of equitable distribution ratios for mineral wealth among them?a first step in ensuring that mineral development is compatible with long-term sustainable development and in the best national interests.

Jan 1, 2002

By N. Sahay

Improvement in work place environment by conventional methods viz., installation of higher capacity fan, fans in parallel operation or booster fan is a risky proposition in many coal mines in India because of difficult geo-mining condition such as shallow depth, multi seam workings having thin parting and inter connected goaves one above the other. The situation is further worsened if the mines have fire affected sealed off area connected to different ventilation circuits. On many occasions circulation of more air quantity by increasing fan pressure have resulted in initiation of spontaneous heating. To address these problems, authors have made some improvement in conventional Dynamic Balancing of Pressure Technique and worked out few ventilation schemes which are aimed for neutralization of pressure differential across sealed off area at the same time having improvement in ventilation in the mine. The excess pressure differential across sealed off area is mainly caused by introduction of higher capacity fan. Similar situation prevailed in one of the mines of Jharia Coalfield, India. The problem was solved by application of the above technique. In this paper, brief description of the technique, the problem in the mine, results of investigation, computer simulation studies of various schemes and methodology adopted for implementation of the technique in the mine have been discussed in some detail. Keywords: Dynamic Balancing of Pressure Technique, Spontaneous heating, Work place environment.

Jan 1, 2003

By S. Okubo, K. Fukui

Empirical equations established for estimating the rock strength of the working face based on the cutting forces of a tunnel boring machines (TBM) are further examined and discussed with respect to the dominant factors affecting TBM performance. Constants in the equations are related to TBM-specific parameters such as excavation (tunnel) diameter, cutter diameter, and cutter distance. The relationship between the constants and the TBM specifications is examined in this study on the basis of data collected at ten tunnels, and it is found that the constants are most strongly influenced by the cutter diameter and tunnel diameter. Zur Schätzung der Gesteinsfestigkeit an der Arbeitsfläche ermittelte empirische Gleichungen, die auf den Schneidekräften von Tunnelbohrmaschinen (TBM) beruhen, wurden weiter im Hinblick auf die vorherrschenden, die Leistung der TBM beeinflussenden Faktoren hin untersucht und diskutiert. In der Gleichung enthaltene Konstanten werden zu den TBM-spezifischen Parametern wie Auschachtungs- (Tunnel) Durchmesser, Schneidendurchmesser und Schachtlänge in Beziehung gesetzt. Die Beziehung zwischen diesen Konstanten und den technischen Daten der TBM wird in dieser Studie auf der Basis der bei 10 Tunnelbauten gesammelten Daten untersucht. Dabei wurde gefunden, dass diese Konstanten am stärksten von den Durchmessern der Schneiden und der Tunnel beeinflusst werden. Cette étude examine et discute les équations empiriques permettant d'estimer la résistance de la roche attaquée aux forces de coupe des tunneliers dans le cadre de l'étude des facteurs dominants affectant les performances des tunneliers. Les constantes de ces équations concernent les paramètres spécifiques des tunneliers comme le diamètre d'excavation (du tunnel), le diamètre du couteau et la distance de coupe. Cette étude examine le rapport entre ces constantes et les caractéristiques techniques des tunneliers d'après des données collectées dans dix tunnels et elle conclut que ces constantes sont principalement influencées par le diamètre du couteau et le diamètre du tunnel.

Jan 1, 2003

Application of Gy?s formula is appropriate for calculation of the Fundamental Error (FE) prior to samples being collected at any stage of the minerals process, provided that sampling parameters K and a (alpha) have been determined by calibration of the ores. Two types of calibration procedure are well established in the industry, the Hetrogeneity test and the 32-piece sampling tree experiment. The sampling tree experiment uses the variance and average grade of metal analyses from four series of samples at different nominal fragment size, as the basic input data. Pierre Gy suggested the cube as an appropriate exponent of the nominal fragment size for use in his equation. More recent work suggests that this exponent is variable and characteristic of specific ores and therefore requires calibration. The method described here explains the experimental procedure of the calibration. It is then possible to calculate a sampling nomogram using the sampling parameters K and a. This allows the sampler to determine a suitable protocol for the sampling event that will ensure that the FE does not exceed a predetermined precision at any point in the sampling procedure.

Jan 1, 2007

By J. R. G. Williamson

The Mining Division of Iscor, an integrated minerals and metals company, has recently completed a feasibility study for the establishment of a new heavy minerals mine and smelter in the Richards Bay area of KwaZulu-Natal, South Africa. The mine will produce a heavy mineral concentrate containing ilmenite, zircon, rutile and leucoxene which will be beneficiated at a central processing complex close to Empangeni. The ilmenite will be smelted to produce high-grade titania slag and pig iron for export. The ancient dune containing the mineral deposit is located some distance inland of the coastal dunes, and the sands contain a high proportion of extremely fine material which must be extracted ahead of the gravity separation process. Of the 56 million tonnes to be mined annually over the ten-year life of the mine approximately 23,4%?a total of 13,1 million tonnes of minus 45 micron residue fines?will have to be disposed of in a containment facility. The origin of the fine material is from the weathering of amphibole minerals. The remaining coarse sands will be returned to the mined area to re-create the original dune configuration. A number of options for the disposal of the residue fines have been examined and specialised laboratory tests undertaken to determine the deposition behaviour of the fines. The final solution involved the use of a ?sub-aerial? technique for deposition of fine material in a disposal facility. The resulting arrangement will adequately meet technical and environmental criteria. Upon closure after 10 years of operation, the surface of the disposal facility will be returned to sugar cane cultivation The paper refers to the various options considered and describes the problems associated with competent disposal of the residue fines and the development details of the final disposal facility.

Jan 1, 1997