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For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analysts' inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted `floor' value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

By W. K. Loftus, H. S. Simpson

Discussion I. R. M. Cheston (Visitor): I should like to congratulate the authors on this interesting paper which graphically illustrates the overall effects of the gradual developments in diamond concentrating processes which have taken place over the past few years. These final stages of diamond concentration represent only a minor factor in the cost of diamond production but because of the shortage of highly trained people for this work, any easing of the burden on the sorting staff has an importance far beyond the immediate economic sphere. The search for the solution of problems posed by the economic and social conditions of industry is never-ending. The Diamond Research Laboratory is, even now, carrying out further work to improve still more the operation of general diamond recovery processes as described in the paper. Before looking at some of the latest developments in this field of final recovery, there are a few points arising from the paper on which I would like to comment. On page 321, reference is made to the X-ray sorters originally developed by the DRL. The paper gives a figure of 100 per cent recovery of diamonds from +7 mesh concentrates in two passes through the prototype machine. Not wishing to claim miraculous powers for our group, I would prefer to see this given as virtually 100 per cent recovery of all fluorescing diamonds. Firstly however much care is taken, there is bound to be an occasional operating loss. In the test work, 100 per cent recovery was made on many occasions but this was not always so. Secondly, although most diamonds fluoresce strongly under X-rays, some diamonds only fluoresce weakly. Type IIB diamonds, in fact hardly fluoresce at all, but the incidence of this special type of diamond is very low in most deposits. However, in operating the commercial X-ray machines, there is a certain background level of reflected radiation from other feed particles. Unless the diamond fluorescence is several times greater than this, it is not possible to achieve sufficient sensitivity in ejection. A certain small but variable proportion of diamonds from each deposit is always found to fluoresce too weakly to be recovered by the X-ray machine. Tests have shown, that for the De Beers mines, this proportion is considerably less than I per cent. These diamonds are nearly all dark brown or black in colour and therefore of low value. The degree of fluorescence does not, however, depend entirely on the colour or quality of the diamond and some of the brightest fluorescence comes from the lowest quality of boart diamonds. Investigations into the property of the diamond which causes this low fluorescence are being carried out. On page 322 it is suggested that zircon fluoresces in the same colour spectrum as the diamond. This is not quite accurate. The total light given out by zircon under X-rays is of the same order as that of diamond. However the zircon radiation has a much wider spectrum band than the diamond fluorescence. Reference is also made on page 322 to the effect of selective milling in small laboratory mills on diamonds. Perfect diamonds are very hard and very strong and are extremely difficult to break. Imperfect diamonds, which form the majority of diamonds recovered from most deposits, although hard, can be very brittle. Even under slight impact some of these diamonds may shatter to powder. Milling conditions must therefore be extremely closely controlled to minimize breakage, and even so, some breakage will always occur. As suggested in the paper, the necessary conditions are: the use of small balls, slow speed mills and very limited water addition. Tests elsewhere have suggested that the water content of the pulp in such a mill must be less than 25 per cent by weight of pulp to prevent diamond breakage reaching significant proportions. The skin flotation techniques described on page 323 operate on a very small scale. It is of interest to note that in West Africa a large-scale continuous skin flotation machine is used to recover the fine diamonds. In this operation the feed is dried and, after standing, is mixed with water and fed in a single layer onto a woven phosphor-bronze conveyor belt. This belt runs at a shallow angle into a water bath and as the particles are carried through the air-water-interface, the diamonds float off and over a weir into a collecting box. The bulk of the particles, being wettable, sink to the bottom of the tank and are continuously removed. If treated without prior drying, the diamond recovery is poor. If material is treated immediately after drying, a lot of the gangue particles also float. During standing, in the hot and humid atmosphere of West Africa, it is found that the gangue particles recover their wettability much faster than the diamond particles. Optimum selectivity is obtained after standing for approximately 24 hours. At the DRL we have been experimenting with optical filters to differentiate between the fluorescence of diamonds and zircon. By limiting the light transmission to the fairly narrow range emitted by diamonds, it is

Jan 4, 1970

By S. Schmachtel

Several possible physico-chemical properties of composite electrodes for oxygen evolution are presented to describe experimental data for which a mathematical model had been developed. On this basis, local electrical and electrochemical properties of a composite electrode were investigated with conductive atomic force microscopy (CAFM) and scanning electrochemical microscopy (SECM). It could be shown by CAFM measurement that the boundary between matrix and catalyst particles seemed to have special advantageous electrical properties. The SECM measurements showed the presence of mass transport phenomena with increased surface concentrations, whilst the thickness of the Nernst diffusion layer was very small. An intermediate was detected and assigned to be hydrogen peroxide. From all species involved in the oxygen evolution reaction (H2O2, H+ and O2), it was concluded that local active spots exist on the electrode on which hydrogen peroxide reacts to oxygen and protons. A two?step two-material process was suggested to explain the whole oxygen evolution mechanism.

Jan 1, 2008

The key functions of project evaluation are to assess potential profitability and to develop an effective operational design. For mining projects, design aspects include mining methodology, ore treatment methodology and production rates. All of these characteristics impact on project economics and overall value. Resource models, which form the ultimate basis of project evaluation, typically consist of tonnes above cut-off, grade above cut-off and the spatial distribution (connectivity) of tonnes/grade above cut-off, for one or more variables. Dilution, ore loss and metallurgical recovery are all modifying factors applied to the resource model during evaluation and determination of profitability. A key issue is: how is the value determined? In addition to traditional combination of in situ tonnes/grade, the following merit serious consideration: the concentration of deleterious elements, throughput rates, mining/processing costs and - importantly - metallurgical recovery. Geometallurgy is an emerging field targeted at integrating these issues by identifying either direct measures or proxies for throughput (hardness, grindability), recovery (liberation, mineral shape/texture, etc) and concentrate quality from easily collected macro-, meso- and microscopic data. These 'geometallurgical variables' drive project costs and revenues in a fundamental way. For geometallurgical characterisation to have a real impact on business design, it must enable improved mine planning. When creating spatial estimates for such variables, it is preferable to find proxies that can be measured as close to the intact rock mass as possible. However, spatial estimation of proxies for geometallurgical properties and responses is complex and requires special consideration. Unlike grades, both proxies and absolute measures of geometallurgical variables are not necessarily linear or additive and therefore require very careful geostatistical consideration. In some cases, models must predict extreme values of geometallurgical attributes rather than averages. Incorrect characterisation of metallurgical recovery/throughput can (and has) led to misspecification of the scale of projects, and thus can be seriously value destructive. Aspects of geometallurgy have long been important in iron, bauxite, manganese and coal deposits and are increasingly on the radar for base and precious metal miners. However, as more metallurgically complex deposits are developed and mining of large-scale, low-grade deposits becomes more commonplace, the importance of characterising the metallurgical response in order to generate properly optimised projects will rapidly increase. It is possible that in many `traditional' (ie grades and tonnes) reserve models, the variables that drive the project are missing!

Jan 1, 2007

By A. L. Painting

A study of the end effects in specimen cores under compression tests, with a view to the elimination of these effects by A. L. PAINTING (Student) It is well known that a cylindrical rock specimen tested under uniaxial compression in conventional fashion is subject to end effects; that is, towards the end of the core, the stress and strain distribution becomes non-uniform. The experiment described illustrates such end effects with an aluminium core between steel platens. An attempt was then made to nullifythese effects by compressing the core between pads of mercury. The resulting stress and strain distribution was significantly more uniform, but a slight over-correction was introduced.

Jan 4, 1974

The optimal design of production phases and ultimate pit limit for an open pit mining operation may be generated using conventional or stochastic approaches. Unlike the conventional approach, the stochastic framework accounts for expected variability and uncertainty in metal content by considering a set of equally probable realizations (models) of the orebody. This paper evaluates the performance of a new stochastic network flow approach for the development of optimal phase design and ultimate pit limit using a gold deposit as the case study. The stochastic and conventional frameworks as considered here utilize the maximum flow and Lerchs-Grossman (LG) algorithms, respectively. The LG algorithm is restricted to considering an estimated (average-type) orebody model, while the stochastic maximum flow algorithm is developed to simultaneously use a set of simulated orebody realizations as an input. The case study demonstrates that, when compared to the conventional LG algorithm as used in the industry, the stochastic approach generates a 30 per cent increase in discounted cash flow, a 21 per cent larger ultimate pit limit, and about 7 per cent more metal, while it maintains a consistency in phase size.

Jan 1, 2012

By K. Hodgson, Cook. N. G. W.

Most structures are designed so that the possibility of failure is eliminated. However, some degree of failure in the rock around deep mine excavations is inevitable if mining operations are continued. The presence of failed rock constitutes a hazard the magnitude of which can be predicted by computer models from calculations of the energy change per unit area mined in stopes, or the field stress around service excavations. Empirical relationships between these calculable quantities and the incidence of rock failures and delays associated with them have been established. Experiments on the computer using different layouts enable the mining engineer to select the least hazardous of otherwise acceptable alternatives, and to predict the incidence of damage ahead of actual mining, so that appropriate measures to maintain an adequate degree of safety and productivity can be planned in advance.

Jan 1, 2014

By P. Pięta, A. Surowiak, T. Niedoba

In a flotation process of copper ore three factors were measured: copper grade in concentrate (β), copper grade in tailings (J) and recovery of copper in concentrate (e). The experiment was conducted by means of the Jameson cell. The factors influencing the quality of the process were particle size (d), time of separation (t), type of the collector (k) and dosage of the collector (s). The considered vector function was then [β(d, t, k, s), J(d, t, k, s), e(d, t, k, s)]. Optimisation achieved was based on determining the values of the adjustable factors (d, t, k, s). The goal was to obtain the highest possible values of functions β and e (maximum) and the lowest possible values of function J (minimum). To this purpose the taxonomic methods were applied. Keywords: Flotation, copper ore, lithology, flotation agents, particle size distribution, taxonomic methods

Jan 1, 2020

By G. R. Marchant, B. K. Loveday

"A mathematical model has been developed for flotation circuit simulation. This model was designed to investigate the effect of varying the circulating loads and to determine whether an improvement in overall efficiency could be gained by a size separation prior to flotation.Model parameters were obtained by regression to plant data. Highly correlated parameters in the model were combined to reduce the number of parameters so that the need for excessive data gathering was eliminated. Mass balance smoothing was used to obtain a consistent data set for regression.The results of the simulation indicate that for the same grade of concentrate, an increase in copper recovery of 0.6 per cent may be Possible by increasing the circulating loads. The results of the simulation also indicated that recleaning of the plus 200-mesh material may be beneficiaL."

Jan 1, 2014

By W. J. Whiten

"Models of cone crushers and vibrating screens are described. These models have been constructed from actual plant data using a systematic model-building technique. Included in this technique is regression analysis using multi-dimensional spline functions.The models have been used to simulate complete crushing plants and hence to design and evaluate a control system for crushing plants."

Jan 1, 2014

By E. van Steen, G. M. Leteba

Optimizing the catalytic performance of multimetallic nanoparticle (NP) catalysts demands a concrete understanding of their design, while preferentially deploying wet chemical synthesis procedures to precisely control surface structural properties. Here we report the influence of reductants such as hydrogen-rich tetrabutylammonium borohydride (TBAB) and carbon monoxide-rich molybdenum carbonyl (Mo(CO)6) on the shape and morphological evolution of Pt-based binary (PtNi and PtCo) and ternary (PtNiAu and PtCoAu) nanostructures derived from a homogeneous solution of aminebased surface active agents (surfactants) in a high boiling point solvent. We successfully synthesized nanostructures exhibiting well-defined and composition-controlled surfaces deploying a one-pot synthetic approach. The development of the surface properties was, however, observed to be alloyspecific. The resultant highly monodisperse alloy NP with narrow size distributions and facet-oriented surfaces are expected to display enhanced functionality as catalysts for utilization in specific chemical reactions.

Jun 1, 2021

By K. Dewar

The catalytic converter industry is composed largely of global multinational manufacturers who supply to vehicle manufacturers (original equipment manufacturers ? OEMs) from facilities strategically located internationally, including plants in South Africa. The South African catalytic converter production facilities were established at the request of the OEMs and commenced manufacture in the early 1990s. This near 100 per cent export focused industry exists in South Africa because of the incentives offered by the Motor Industry Development Programme (MIDP), which ultimately provide the OEM with import duty rebates. The South African catalytic converter industry is a complex vertically-integrated supply chain with a local content in excess of 85 per cent, substantially more than any other exported automotive component. The industry remains one of the very few downstream manufacturing industries where South Africa has a significant global footprint. This is even more important when it is considered that this industry is the key end-user for two of South Africa?s most important mineral resources, namely platinum group metals (PGMs) and chromium, and is in an industry which will see massive global growth as the developing nations of the BRICs grow their auto industries. In over 15 years of existence in South Africa, the catalytic converter industry has achieved remarkable growth, averaging compound growth in the region of 14 per cent per annum. The industry is the highest contributor to automotive component export revenue. South Africa holds >8 per cent% of global PGM reserves. During 2011, South Africa supplied 59 per cent, 29 per cent, and 72 per cent of the global demand for platinum, palladium, and rhodium respectively, as well as over 50 per cent of the global chromium demand. Global autocatalyst production remains the largest consumer of PGMs, and South Africa alone beneficiated 15 per cent of locally mined PGMs in the production of catalytic converters ? all is converted from PGM sponge (powdered metal) into PGM solutions for coating onto catalysts. Beneficiation of PGMs also takes place via the production of jewellery and electronic goods; but compared to catalytic converters, this volume is negligible. The industry is also the largest consumer of locally produced stainless steel (>50 000 t/a), exceeding 38 per cent of local consumption. The industry is a substantial generator of highly skilled employment, with over 5 000 direct jobs (excluding OEMs and stainless steel manufacture) and an estimated more than 30 000 indirect jobs resulting from upstream and side-stream suppliers. The industry places a high focus on skills transfer and development, with all companies providing high-tech training and education both locally and overseas. The industry has invested in excess of R5 billion in plant, equipment, people development, and process development over the last 15 years to support transfer of production and new technologies to South Africa. This has resulted in significant skills development in the support industries as well as within the catalytic converter industry. The current projections for local PGM beneficiation via catalytic converters reflect a downward trend as a result of production being moved to other global locations due to uncertainty around changes to government incentive programmes. The industry is currently capacitated to support 23.7 million units per annum. During 2011 it utilized about 70 per cent of this capacity, but forecast projections suggest that this will be at 46 per cent of this level by 2016. At full capacity the industry would represent 19 per cent of global autocatalyst production compared with the current 13 per cent in 2011. The industry believes that there is potential to make South Africa the preferred location for catalytic converters worldwide, given suitable support from the mines and Government.

Jan 1, 2012

By J. J. S. de Beer, F. Hunter, A. F. Neethling

SYNOPSIS The paper describes the rib-pillar extraction method now used at Sigma Colliery in the Orange Free State. In this method, access roadways (with a high safety factor) are developed into a block of coal suitable for total extraction; pillars that have a low safety factor are then formed and extracted immediately. The method, together with the current practices of labour management, has resulted in better utilization of the coal resources and capital, increased production and labour productivity, and improved safety.

Jan 1, 1991

By N. B. Prenn, R. H. Robinson

"The model described is a design and economic planning tool for analyzing surface mineral deposits. Mineralization, topography, costs and significant geologic features are input to the model. The results are:(i) final pit limits yielding the maximum total profit,(ii) annual cut-off grades and plant sizing yielding the maximum present value, and(iii) annual maps of the pit and annual production statistics for the mine, concentrator and smelter.Additionally, summaries are printed of the block mining sequence and cash flow. A special feature is an option to include dump-leaching operations. Stockpiling of material can also be simulated by the model. The model is built around theories of dynamic cut-off grades and a pit design algorithm. The dynamic cut-off grades maximize present value by examination of all economic and physical constraints for the optimum combination. The pit design algorithm is a set of rules formulated to find the maximum value from a special graph. The graph is different from graphs of analytical geometry, being made up of points and arrows connecting some of the points. These graph elements describe the relationship between any point in the deposit and the material which must be mined to get at that point. The model was designed to bring together the interdependent theories of economics, pit design and production scheduling."

Jan 1, 2014

By R. F. Taberer

Within the technology field generally known as biological heap leaching or percolation leaching, lies a wealth of technological knowhow that is potentially patentable and therefore can form the subject matter of patent applications. An organization often overlooks the potential for generating intellectual capital during its research by dismissing the possibility that what it is working on may be novel and inventive and therefore patentable. The organization labours under the misconception that there is nothing patentable in its work mainly because the novel aspect is overlooked against the general background state of the art or, if identified, is not recognized as having sufficient inventive merit. In the field of biological heap leaching, patents have issued on inventions that extend across a large range of technology, including microbiological inventions-for example a particular strain of microbe used in a heap leach application, electro-mechanical inventions, for example a column simulator that simulates the heap leach environment, and thermodynamic inventions such as methods of generating and maintaining heat in a heap.

Jan 1, 2012

Determination of mineral composition is of significant importance for the mineral sands industry as this information is required for orebody evaluation, the control of mineral processing plants and the determination of product quality. Mineral processing is made more difficult by the presence of pseudorutile, leucoxene, altered-ilmenite and particle inclusions. The paper investigates the properties of such elements from a single product stream using an MLA approach.

Jan 1, 2007

By D. Amariei, G. Bartolacci

Preconcentration of precious and base metal ore types is becoming more relevant with the discovery, the development and the operation of many lower grade deposits around the world. Ore preconcentration designates an operation consisting of sorting an ore to reduce the quantity of waste material sent to the concentrator. It can be seen as rejecting waste material as much as possible, without compromising the recovery, or as the recovery of as much valuable metal as possible into an optimum mass yield. Benefits of preconcentration are multiple: grinding energy savings, costs reduction, lower environmental footprint, extension of the reserves, etc. However, all of these benefits do not apply simultaneously and are not applicable to each ore type. Technologies employed for preconcentration are highly dependent on ore properties, especially on the particle size at which the gangue is liberated. Thus, from coarser to finer particle sizes, technologies such as screening, ore sorting, gravity separation (Dense Media Separation (DMS) and jigs) and coarse flotation could be used for the rejection of liberated gangue. The difficulty starts when a benchmark is needed to select a suitable technology, especially for low-grade gold deposits. This paper presents the challenges of comparing lab-scale technologies (DMS versus jig) for gold preconcentration. The experimental data will show to what extent comparing two lab-scale gravity technologies for gold preconcentration can be challenging. An attempt to evaluate the energy savings by assessing the hardness of the tailings after gravity separation will also be presented. Keywords: Challenges in gold preconcentration, gravity separation, jig, dense medium separation

Jan 1, 2020

By H. W. J. P. Neomagus, J. R. Bunt, D. L. Botha, N. T. Leokaoke

Coal briquetting traditionally makes use of high-dosage, nonpolymeric binders (such as coal tar pitch or molasses) or polyvinyl alcohol (PVA) at low dosages for the binding of fine and ultrafine coal. Due to constraints associated with the manufacturing and cost of PVA-bound briquettes, a novel polyacrylic binder was developed that could possibly be added in low dosages at room temperature. A set of formulations of two polyacrylic components (components A and B) was developed, from which an optimal binder mixture was determined. This formulation comprises 40wt.% component A and 10wt.% component B with a 0.04wt.% cross-linking additive, and the balance water. The uniaxial briquette compressive strength was used to obtain the optimal binder mixture. The binder mixture was added to the coal powder in dosages from 0.1 to 1.2wt.%. Mechanical tests and thermogravimetric analysis in an oxidized environment at a maximum temperature of 930°C were conducted. Binder-bound briquettes were compared to binderless briquettes and PVA-bound briquettes. Briquettes made from the polyacrylic formulation had uniaxial compressive strengths double that of the binderless briquette yield strength, as well as the minimum recommended compressive strength of 0.375 MPa. The organic binders did not affect the combustion of the briquettes, since the results compared well with the binderless briquettes. The polyacrylic formulation is considered to be a possible substitute for PVA in terms of mechanical and thermal properties and raw material cost.

Mar 1, 2021

By M. Bester, R. Carey, T. Russell, J. van Heerden

"In order to reach the goal of optimal and safe extraction of the mineral reserve, the mining industry is increasingly focusing on reconciliation across the mining value chain to ensure that the mining process occurs in a progressively more predictable manner. This will consequently improve the understanding of mine plans and their associated implementation risks, ultimately leading to increased investor confidence. In terms of geotechnical engineering, mine to design performance assessment is a critical aspect of mine to plan adherence focusing on the complex aspects influencing slope performance. A mine to design reconciliation process therefore needs to systematically track implementation and geotechnical aspects in order to review or update slope design criteria and pit layouts according to the mine planning cycle as the mine is developed. This paper describes the development and implementation of a standardized mine to design reconciliation system for operations utilizing laser scanning technology, analysis tools, as well as associated key performance indicators. Performance is evaluated on final pit boundaries in terms of geometry achieved as well as blast performance evaluation of face conditions. These aspects as well as the resulting catch berm capacity should be captured in an information system, enabling longer term trend analysis and detailed root cause analysis where unsatisfactory outcomes occur. Adverse outcomes should subsequently be incorporated into the mine’s risk management process informing risk mitigation measures including blast design adjustments, slope design changes, or rockfall protection measures. IntroductionIn order to reach the goal of optimal and safe extraction of the mineral reserve, the mining industry is increasingly focusing on reconciliation across the mining value chain to ensure that the mining process occurs in a progressively more predictable manner. This will consequently improve the understanding of mine plans and their associated implementation risks, ultimately leading to increased investor confidence. In terms of geotechnical engineering, mine to design performance assessment is a critical aspect of mine to plan adherence focusing on the complex aspects influencing slope performance. A mine to design reconciliation process therefore needs to systematically track implementation and geotechnical aspects in order to review or update slope design criteria and pit layouts according to the mine planning cycle as the mine is developed."

Jan 1, 2016

By J. C. M. De Souza

The Samarco pipeline, the longest in the world for iron ore slurry transportation, started operation in 1977 to transport concentrate from the Germano facilities, in the state of Minas Gerais, to the pelletizing plant, located 396 km away, in the state of Espirito Santo, on the south-east coast of Brazil. Designed for a nominal capacity of 12 million tons per year, the pipeline reached 15.5 million/year due to operational improvement and, in late 2005, it was resized to transport 16.5 million tons per year, with the installation of a booster station. In order to ensure the accurate performance of the system, a pipeline cleaning programme was carried out and, since it has been29 years from the operation start-up, precise knowledge of the pipe condition would be fundamental to guarantee the success of the project. The cleaning programme demonstrated the potential of operational gains from this initiative, and its effect on the corrosion control and future measures, which should be permanently adopted to maintain the improved capacity. The intelligent pig runs provided essential data used to establish a pipeline integrity programme that allowed Samarco to develop a pipe repair plan based on the severity and significance of the features and to implement a future pipe replacement plan.

Jan 1, 2007