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The theory of geostatistics covers a branch of .applied statistics aimed at a mathematical description and analysis of geological observations. Geostatistics can be used in pure geology (for example, for the analysis of trace elements in a metamorphic rock), in mineral exploration (for example, for the analysis of geochemical exploration data), as well as in mine valuation. This book is intended to provide a practical introduction to the theory of geostatistical methods of mineral evaluation. Over the years, various mathematical models have been developed to represent the distribution of values in mineral deposits. The simpler models are based on the assumption that the values are randomly distributed. Classical statistical methods, based on this assumption of the random distribution of values, are used to analyse mineral deposits to which these models apply or are assumed to apply. In all mineral deposits, however, one recognizes the presence of areas where the values are higher or lower than elsewhere. Also, the values of two samples in a mineral deposit are more likely to be similar if the samples are taken close together than if they are taken far apart. This indicates that there exists a degree of correlation between sample values, and that this correlation is a function of the distance between the samples. Models have been developed which take this correlation into consideration, with the degree of correlation between sample values being usually measured by the semivariogram function. In these models the fact that two samples taken next to each other will most probably not have the same value, must also be considered; even for very short distances the correlations are usually not perfect and a purely random component is present in the value distribution. The mathematical models will therefore assume the presence of two sources of variability in the values: a correlated component and a random component. Finally, one must consider the particular and very common case of mineral deposits in which the values present a systematic variation in space. This variation is usually referred to as a drift, or a trend. For example, the grade of an ore body may increase with depth of the ore, or it may decrease when one moves away from a central volcanic pipe. The earlier models did not give a satisfactory representation of drifts, and more complex models have been developed, in which three sources of variation are represented. These models are made up of: a deterministic component, a correlated component, and a random component. The deterministic component is used as a model of the drift. The correlated component explains regular changes in values which are not represented by the drift. The random component represents variations which cannot be explained by any of the above factors. The simpler models, based on the assumption of a single random component, will be described first (Chapter 2). The models based on the hypothesis of the superimposition of a correlated component on a random component, will then be analysed in detail. These models are most commonly used in the analysis of mineral deposits (Chapters 3-1 I). Finally, how to deal with the presence of a drift will be briefly described (Chapter 12). This book has been written essentially for students in mining engineering and for mining engineers who are interested in the background to the theory of geostatistics as well as its practical applications. The assumption is made that the reader has an elementary knowledge of statistics. Some knowledge of linear algebra is useful in part of Chapter 9, and is necessary to read Chapter 12. A proof is given of all the equations related to geostatistics, and which are not usually found in elementary textbooks on statistics. Understanding of these proofs is not necessary for practical application of the theory, and the reader may wish to skip them on a first reading, concentrating attention on the numerous simple practical examples given. Although the theoretical geostatistician will not find much new material in this publication, it is anticipated that he will develop some interest in the practical approach chosen to prove the various geostatistical equations. Many people and institutions contributed to the preparation and completion of this work. I am much indebted to Dr D. G. Krige and the Anglo Transvaal Consolidated In- vestment Company Limited, who gave me the opportunity to spend a considerable amount of time working on geostatistical problems, both theoretical and practical, during the time that I was in their employment. Dr Krige contributed greatly in developing my interest in studying both the theory and practice of geostatistics, always insisting that a correct balance be kept between theory and practice. I am grateful to Professor H. M. Wells and the Mining Department of the University of the Witwatersrand for inviting me to give lectures in a post- graduate course on geostatistics. The notes 1 prepared for that course became the foundation of the present work. I am also indebted to the Centre de Geostatistique of the École des Mines de Paris, where I received my first formal education in geostatistics during a summer course given by Charles Huijbregts, after many years of my lonely plodding through the published literature. Many graphs in the present volume are reproduced with the permission of the Centre de Geostatistique. The Department of Metallurgical and Mineral Engineering of the University of Wisconsin-Madison has also contributed in making this work possible, by allowing me to spend a considerable amount of time and resources in the writing, typing, and correcting of successive drafts. I am thankful to Lynn D. Kendall, who typed the entire manuscript under constant pressure.

Jan 1, 1978

By R. Singh, A. K. Dhawan, M. Dixit, H. Dev

ABSTRACT: The modulus of deformation of rock mass is an important engineering parameter required for the design of foundation of hydraulic structure and to study the interaction of rock mass and the structure at the foundation support. Different equipment and techniques are used to arrive at the design modulus value. Since any error in the estimation of modulus values results in multiplication of its effects in the analysis, it is necessary to know about the reliability of testing equipment and procedures. In the present study modulus values obtained by different in-situ equipment at different project sites have been compared. KURZFASSUNG: Der Verformungsmodul von der Felsenmasse ist technisch ein wichtiger Parameter, den man zur Konstuktion des Grunds fuer die Hydro – Tektonik, benoetigt um auch die gegenseitige Beeinflussung der Felsenmasse und der Tektonik am Traggrund zu betrachten. Verschiedene Geraete und Methoden werden angewandt, um den Ausfuehrungsmodul -Wert zu erreichen. Es ist erforderlich, die Zuverlaessigkeit der Pruefeinrichtung sowie des Verfahrens zu kennen, da irgend ein Fehler in der Abschaetzung von Modulwerten in der Analyse zu einer Vervielfachung ihrer Einwirkung fuehrt. In der vorligenden Arbeit werden die Modulwerte gewonnen aus unterschiedlichen Einrichtungen an Ort und Stelle and verschiedenen Projekt -Stellen mit einander verglichen. SOMMAIRE: Le module de deformation d’une roche est un parametre important pour la conception et realisation des ouvrages hydrauliques ainsi que pour etudier l’interaction de la roche et de la structure d’appuis de base. De divers equipments et techniques sont employes pour determiner la valeur de ce module de conception. Puisque l’effet d’une erreur d’evaluation du module devient multiplie dans l’analyse, il est necessaire de savoir la fiabilite des equipments et des methods qu’on ulilise. Dans cette etude, on a compare les valeurs des modules obtenues en employant les equipments in-situ aux sites differents de projets.

Jan 1, 2003

By F. L. D. Cloete, M. C. Coetzee

This study was aimed at a comparison of the efectiveness of a new axial-flow type of mixer impeller (the Prochem design) with the traditional inclined-blade turbine. The intended application of the mixers was in carbon-in-pulp plants for the extraction of gold from cyanide-leached pulps. The first part of the project involved water and ion-exchange resin, and measurement of the power drawn by the various sizes of impeller to fully suspend the resin. The rate of reaction between the resin and the solution was measured as a function of the power input to the mixer. In the second part of the project, use was made of activated carbon, silver cyanide solutions, and ore pulps. The rate of absorption of silver from the solutions and pulps was determined, as well as the rate of attrition of the activated carbon caused by the various impellers in clear water. The Prochem design of axial-flow impeller was shown to fully suspend solids at only one-quarter of the power requireabyan inclined-blade turbine of similar size. The axial-flow pattern produced was responsible for the more uniform vertical concentration profile of suspended beads produced by the Prochem design. These measurements verified the observations of other researchers that the rate of reaction is not affected by the ;design of impeller provided that al the solids are fully suspended. The Prochem design of impeller therefore achieved the same reaction rate as the conventional turbine at a quarter of the power input. The atrition rates of activated carbon could be correlated, in terms of the energy absorbed, by the same equation for al the impellers. Higher concentrations of activated carbon increased the amount of carbon fines produced. These results emphasize the importance of designing mixers for minimum power consumption.

Jan 1, 1989

By H. A. D. Kirsten

The professions are subject to a wide range of changing conditions, and are as a result forced to become more competitive. Although there is a need for specialization under these circumstances, no formal recognition, definition, or control of specialists exists. Some of the professions have attempted, over extensive periods of time, to resolve the issues involved, and have met with varying degrees of success. It appeared from the replies to a questionnaire sent to over one-hundred-and- .fifty professionals, that both advanced education and experiential training, are considered to be necessary qualifications for specialization. The opinion as to whether it should be lift to the individual to cal himself a specialist, or whether recognition should be based on peer review, was divided The majority did not want the number of specialists to be controlled The response to the reservation of work for specialists was ambivalent.

Jan 1, 1995

Ladies and gentlemen, it is a privilege to be able personally to welcome you to the opening of this Symposium. It is particularly pleasant to be able to extend a warm South African welcome to al our visitors from foreign shores. We trust you will enjoy your stay in our country. It is a singular honour for me to be present here today, and to have been asked to open this international Symposium. MINING IN SOUTH AFRICA Mining is the single most important contributor to this country's foreign-exchange earnings. Minerals and processed mineral products together account for about 70 per cent of South Africa's total foreign exchange earnings. The mining sector employs in excess of 670 000 people, and is one of the largest employers in the country. The construction and development of cities and towns like Johannesburg, Welkom, Orkney, Springs, Benoni, Witbank, and Klerksdorp is a direct result of the contributions of the mining industry to economic activity in these areas, as well as of the multiplier effect of secondary industries.

Jan 1, 1993

By T. Bednarski, L. Thomas, G. Banza, D. Muteba, P. Cole, M. Soderstrom

"In copper solvent extraction, aqueous-in-organic entrainment results in the carry-over of unwanted species into the electrowinning process with negative cost implications. The need to bleed is increased and the purity of the copper cathode is potentially compromised, depending on the impurities being transferred (Cl, NO3, Fe, Mn). In some cases, entrainment results in elevated levels of manganese in the electrolyte which can cause oxidative conditions to develop and degradation of the organic phase. Degraded organic phase detrimentally affects the physical performance of the copper solvent extraction process, contributing to even higher aqueous-in-organic entrainment. Aqueous entrainment may be minimized through good operating practices and maintenance of the organic quality, but the accurate measurement of entrainment remains a challenge. This paper presents coalescing devices designed to provide more exact measurements of aqueous-in-organic entrainment. IntroductionMany copper solvent extraction (SX) plants experience high aqueous-in-organic (A-in-O) entrainments but are unaware of the extent of the problem because entrainment is often not measured. Aqueous entrainment results in the carry-over of unwanted species into the electrowinning (EW) process and the need to bleed to maintain acceptable concentrations in the electrolyte. The costs associated with the bleed are exacerbated in copper plants where aqueous entrainment levels are high. Other than these direct costs, there are operational consequences of the build-up of certain species in the EW circuit that can have deleterious effects on plant performance.Minimizing aqueous entrainment in operating plants requires an understanding of the factors that affect entrainment levels. Both chemical and operational influences are discussed in this paper. The difficulty of obtaining a representative sample makes it challenging to obtain an accurate measure of aqueous entrainment from a continuous process like SX. Coalescing devices used to get a more precise measurement of A-in-O entrainment are useful to complete mass balances around the SX circuits. Alternatively, mass balances can be used to estimate aqueous entrainments and are helpful as a tool to troubleshoot operations with a view to improving plant performance."

Jan 1, 2016

By R. Hoare

TSG Consulting works with many of the major global mining companies using simulation modelling as an integral component in their development team's processes to determine which combination of infrastructure options, operating performance and operating rules best achieve project goals. All systems can be divided into a series of subprocesses. Conventional management and design practices focus on the optimisation of these system components. However, the interaction between subprocesses means that improvements made to the individual components do not necessarily translate into total system performance improvement. TSG Consulting advocates a `total integrated system approach' to understanding the behaviour and performance of complex interacting systems. In a constraint-based integrated set of processes, the instantaneous system capacity is limited by the subsystem component capacity that is the bottleneck at that point in time. Additionally, real world stochastic and dynamic influences tend to have knock-on effects across subsystem boundaries. This necessitates the requirement for simulation modelling to develop and validate solutions that are sufficiently robust to deliver sustainable outcomes. The key to maximising production is to understand the causes and effects the inherent variability has on component performance, subprocess performance and most importantly, the total integrated system performance. The correct use of simulation modelling techniques allows study teams to evaluate the relative merits of different capacity enhancement proposals. Put simply, when done well, simulation modelling provides a quantitative and rational process to enhance the knowledge and insight needed to make informed decisions.

Jan 1, 2007

By Dick Stacey

Many open pit mines are now being mined at very significant depths, often at depths far greater than was originally planned. Even deeper open pits are also being planned, to depths that would be considered deep by underground standards. The heights of the resulting rock slopes are usually beyond the current experience and knowledge base. The exceptions are, perhaps, some very high and steep natural rock slopes. These natural rock slopes are also assuming greater significance owing to pressures of infrastructure development and consequent exposure of such infrastructure to the hazards of slope failure and landslides. Developments in road and rail infrastructure are also resulting in higher rock cuttings. Present understanding of the mechanisms of slope behaviour and failure for high slopes, and for slopes subjected to high in situ stress conditions, appears to be lacking. If the mechanisms of slope behaviour are not well understood, the validity of commonly applied methods of analysis of the stability of such slopes may be questionable. The papers in this specialist International Symposium, including papers on mechanisms and monitoring techniques, and case studies will contribute to the understanding of these issues. The Symposium has attracted good international participation, from both the attendance and authorship points of view. We are very grateful to all presenters and delegates for taking timeout of their very busy schedules to come and share their knowledge and we hope that all will benefit from this event. Thanks are due to the Organising Committee and to the members of our International Advisory Panel for the ideas, the contacts and the badgering, and to the Secretariat of the South African Institute of Mining and Metallurgy for the organisation.

Jan 1, 2006

By A. A. Hazell

Mine management by objectives by A. A. Hazel The procedure of setting production targets is illustrated in Appendix I of the paper. This procedure is intended only as a guide although the standards on which it is based were established by work studies and found subsequently to be well within the limits of a trained crew.

By J. N. Baloyi

"In atomic emission and atomic absorption spectrophotometry, the sample is heated to a high temperature and thereby decomposed into atoms and ions that absorb or emit visible or ultraviolet electromagnetic radiation at energies characteristic of the elements involved. The flame test is a very simple form of this technique. The yellowing of a flame by the addition of salt, for example, occurs because the sodium in salt emits strongly in the yellow portion of the visible spectrum. These methods are especially useful for low concentrations of metallic elements in both qualitative and quantitative analysis.Interference on Iep-OES has not always been considered a serious problem, especially in the beginning, when compared with Atomic Absorption Spectroscopy. This was due to the euphoria created by the new technique. It meant that criticism was subdued. The Iep was vastly superior to the Atomic Absorption technique, that the interferences suffered by the Atomic Absorption technique dwarfed the little interferences suffered by the rep-OES technique. This is how rep-OES has had a reputation as an interference free technique."

Jan 1, 2014

The Copperbelt areas of Zambia and the Democratic Republic of Congo (DRC) have recently been seeing the development of a significant number of new projects. Due to the current economic climate, some of these projects have been delayed but the region remains an important resource for copper and cobalt for future years. Many of these projects will utilize an agitation leach followed by solvent extraction and electrowinning to recover both copper and cobalt. The flowsheet route for copper is fairly well established while the processing options for cobalt vary considerably depending on the final product (metal or salt) the operator wishes to make. The mineralogy of ores in the area is typically associated with high gangue acid consumption during the leaching process. This has resulted in acid availability to the area being constrained and acid prices have risen accordingly. Agitation leach circuits, typically, have a tight water balance which needs to be maintained and a bleed of process liquor needs to be continuously removed from the circuit in order to maintain this balance. This bleed, typically, contains fairly high levels of acid and requires neutralization prior to tailings disposal or secondary metal recovery. It is, therefore, desirable to minimize the acid concentration in this bleed stream in order to decrease total acid requirements and neutralization costs for the process plant. An in depth case study by Cognis and Bateman Engineering evaluated three different flowsheets with the aim of determining relative operating costs between the three alternatives, together with differences in plant capital cost requirements.

Jan 1, 2009

A banquet, attended by 467 members and visitors, was held at the Wanderers Club, Johannesburg, at 8 p.m. on Friday, 21st March, 1969, to celebrate the 75th Anniversary of the founding of the Institute. Introduction of Dr Carel de Wet R. C. J. Goode (President) Dames en here: Ons het 'n aantal vooraanstaande gaste in ons midde vanaand en mnr Maxwell sal u later meer van hulle vertel. Dit is my aangename plig om u voor te stel aan sy Edele, die Minister van Mynwese, van Beplanning, en van Gesondheid, Dr de Wet en sy gade, mev de Wet. Sy Edele Dr de Wet het geen bekendstelling nodig nie-alhoewel hy ons minister vir slegs die afgelope twee jaar is, het hy reeds talle funksies van ons Mynbedryf bygewoon en het baie vriende gemaak onder ons. Hy het homself baie bemind onder ons gemaak toe hy Wes-Driefontein onlangs besoek het om hulle ondersteuning en aanmoediging aan te bied in hulle uur van nood. The Honourable Dr de Wet was born in the Free State. He is a grandson of that very famous general Christiaan de Wet, who caused so much pain to the British forces and for so many months so successfully eluded them in the Transvaal and Orange Free State. He was educated at both the Pretoria and Witwatersrand Universities. He first practised medicine at Boksburg and then moved to Vanderbijlpark, so you see he has an early association with gold mining on the Witwatersrand, and in moving to the Vereeniging-Vanderbijlpark district he became closely involved in our coal mining and metallurgical industries. South Africa's first steel was poured from a l0-ton open hearth furnace belonging to the Union Steel Corporation in Vereeniging in 1913. Dr de Wet has been mayor of Vanderbijlpark and for several years has been their member of parliament. More recently, the Honourable Dr de Wet has filled with great honour that most important office of Ambassador for the Republic of South Africa in London. At present he wears two hats, in that he is Minister of Planning and of Health, but more important is his cloak, that of Minister of Mines, which I trust offers him the greatest comfort. To fulfill these three arduous tasks must demand of him a terrific devotion to duty, and in doing this he carries on that loyal tradition of service to his fatherland so evident in his grandfather. Dames en here, dit is vir my 'n groot genoeë om Sy Edele Dr de Wette vra om 'n heildronk in te stel op die Instituut vir Mynwese en Metallurgie. Toast to the Institute of Mining and Metallurgy Dr the Honourable C. de Wet (Minister of Mines): Mr President, ladies and gentlemen, Mr President you have introduced me gracefully to this distinguished company and I am appreciative of your remarks. I am fully conscious of the responsibilities that devolve upon me as Minister of Mines in a country where mining makes so vital a contribution to economic progress and development and has, in fact, laid much of the foundation on which our present proud edifice is built. The achievements of the mining and metallurgical industry in its diversified activities arouse feelings equivalent to paternal pride, but let me speedily add that in considering any family relationship that may exist, the Minister of Mines should not be regarded in the role either of a fairy godmother or an indulgent father.

By O. G. Pauw

The relationships between mill power and pebble load, bulk density of the load, and circulating load were investigated on the pebble mills in the grinding circuit at Buffelsfontein Gold Mine. This paper describes the most significant relationships among the operating and control variables on the plant, and illustrates these by reference to experimental data gathered from the plant during operation. The results were used for the development of very successful multivariable peak-seeking controllers for the pebble load and bulk density of the load on these pebble mills. The peak-seeking control algorithms are described in detail. The control system has operated successfully at Buffelsfontein for more than 18 months and is still in operation.

Jan 1, 1985

By P. E. L. Balestra, A. O. Filmer

The kinetics of the reactions involved in the non-oxidative dissolution of nickel concentrate in hydrochloric acid were studied by electrochemical and powder-leaching methods. It was found that the rate of non-oxidative dissolution increases with a cathodic shift in the mixed potential, which can be achieved by an increase in the nickel-to-sulphur stoichiometric ratio at the reaction surface. An unactivated concentrate with a sulphur content of 36 per cent exhibited a mixed potential of +O,3V (SCE) and could not be leached satisfactorily in 3 M hydrochloric acid at 60°c. When activated material (18 per cent sulphur) was leached, it had a mixed potential of -O,3V, and high iron and nickel extraction rates. Results reported by other workers on the non-oxidative dissolution of sulphides are explained in terms of the mixed potentials at which dissolution occurs.

Jan 1, 1981

By M. Berjak, D. M. Hawlins, R. B. MacGillivray

SYNOPSIS The paper describes a method of producing iso line plans using a mathematical technique for interpolating between boreholes, and its computer application. The iso line plans are used for assessing the value parameters of an ore body. The computer programme also produces means and standard deviations to supplement these iso line plans. The mathematical techniques tested for the production of a satisfactory fit of the data were the polynomial, Fourier and moving average technique. The iso line plans are used for assessing the quality of the ore and other salient features such as depth to the floor of the ore body at different points, with a view to deciding how best the ore may be mined. The plans are plotted by the computer to any scale required. INTRODUCTION To assess the economic exploitability of an ore body many tedious and repetitive calculations must be carried out. Observations of borehole or development samples have to be processed yielding measures of ore reserve and quality in each sampled area, and also measures of the worth of the ore body as a whole and of variation in quality from section to section of the ore body. The observations made on the ore (which we shall term 'value parameters') may embrace a variety of characteristics of the ore. Obvious value parameters are those directly related to the economics of mining, viz. assay values, ore body thickness and depth below surface. Other value parameters however may be almost as important. In the case of coal for example a purchasing contract may specify limits of acceptability on other value parameters such as calorific value, ash content or the percentage of volatile matter. In this case, a detailed study of these value parameters will also be crucial. This detailed study must include an assessment, not only of the body as a whole, but also the regional variation in value of the parameter. An obvious and satisfactory way of displaying this variation is by drawing iso lines of constant value parameter on a map of the ore body and supplementing this with the means and standard deviations of the value parameters taken over all boreholes. Such plans, considered together, show up the zones of significance. The relatively stereotyped nature of the operations involved in this process makes it amenable to computer solution. In order to produce iso line plans on the computer we require some mathematical formula for producing a 'valuation surface'-a mathematical

By I. J. Barker

This paper argues that the scale up of furnaces and the supply of electricity are going to be two major issues that will affect the ferro-alloy industry in the near future, and that economic factors will drive this development. The most common type of furnace for producing ferroalloys at present is the submerged-arc furnace with three electrodes, fed from a three-phase AC electrical supply. The scale up of this technology has now reached a fundamental constraint, which is caused by the electrical reactance of the secondary circuit. If the economy of any further scale up is to be achieved in the future then a different technology will have to be used. The supply of electrical power in future is likely to become amore complex issue than it is at present. Existing submerged-arc furnaces tend to run at fairly steady loads, but the ability to swing the load under demand-side management may offer advantages, and may allow a furnace to obtain cheaper power from the organizations that supply this power. This will have to be counterbalanced against the nuisance factors incurred by having a varying load in the operation of the furnace. Various options are therefore discussed in this paper. The possibility of scale up of Søderberg electrodes is discussed, as well as the use of DC power and multiple electrodes. Some of the issues with load swinging are also examined. A particular scenario is also briefly presented to show that considerable further scale up of ferro-alloy furnaces is still possible.

Jan 1, 2011

By P. R. Jochens, D. D. Howat, M. S. Rennie

The slags arising from ferrochromium plants were simulated by additions of CaO and Fe2O3 (6 per cent each), Cr2O3 (7 and 12 per cent), and Fe2O3 and Cr2O3 together (6 and 12 per cent respectively) to slags in the MgO-Al2O3-SiO2 system. These additions were made to slags having an SiO2 content of 45 per cent and an MgO-to-Al2O3 ratio of 4 to 3 or 3 to 4. The effect of these oxide additions on the liquidus temperatures, electrical conductivities, and viscosities was determined. The additions of CaO and Fe2O3, although having little effect on liquidus temperatures, decreased viscosity and increased electrical conductivity. The addition of Cr2O3 raised the liquidus temperatures considerably, and tended to decrease viscosity in the temperature range 1 700 to 1 800°C and to increase electrical conductivity.

The mining rock-mass rating (MAMA) classification system was introduced in 1974 as a development of the CSIA geomechanics classification system to cater for diverse mining situations. The fundamental difference was the recognition that in situ rock-mass ratings (AMA) had to be adjusted according to the mining environment so that the final ratings (MAMA) could be used for mine design. The adjustment parameters are weathering, mining-induced stresses, joint orientation, and blasting effects. It is also possible to use the ratings (AMA) in the determination of empirical rock-mass strength (AMS) and then in the application of the adjustments to arrive at a design rock-mass strength (DAMS). This classification system is versatile, and the rock-mass rating (AMA), the mining rock-mass rating (MAMA), and the design rock-mass strength (DAMS) provide good guidelines for the purposes of mine design. However, in some cases a more detailed investigation may be required, in which case greater attention is paid to specific parameters of the system. Narrow and weak geological features that are continuous within and beyond the stope or pillar must be identified and rated separately. The paper describes the procedure required to arrive at the ratings, and presents practical examples of the application of the system to mine design.

Jan 1, 1990

Performance testing is often used by project owners and financiers to provide protection from, or assessment of, technical aspects of project design, procurement, construction and commissioning. The performance tests can range from comprehensive performance warranties relating to process performance and production in the case of lump sum turn key (LSTK) projects to less onerous demonstration tests for cost reimbursable contracts. This paper will discuss performance testing from both the contractor's and owner's perspectives and focuses on: ? when performance tests are required, ? what type of performance test/warranty is optimum for each type of project, and ? how project performance should be evaluated. The requirement for performance testing can be driven by the project financiers, particularly in the case of smaller resource development companies. In such cases, differentiation between owner's risk and contractor's risk can become contentious. At the other end of the spectrum, larger mining houses may choose to heavily influence the engineering and design process with the contractor supplying services on a reimbursable basis. In that case, the performance testing process is often limited to demonstration tests that validate performance for the owner's corporate governance requirements. This paper was prepared due to the lack of published benchmarking of performance testing and the resultant differences in expectations between a contractor and a project owner that often surface late in the contract negotiation process. The paper provides a checklist of requirements for both the owner and the contractor that may be used to provide `common purpose' early in the contract negotiation process.

Jan 1, 2007

By K. Böde

Hochtief AG Germany has developed a comprehensive management and information system for the construction industry named Aristoteles. This system is an efficient supporting tool to manage a variety of construction sites as well as operating business units with required economic targets. As such, Aristoteles offers wide-ranging control of complex economic processes in construction in a consistent manner. In this paper the process oriented functions of the system will be described with special emphasis on finance accounting and cost control. The basic elements in this respect are tender estimation, creation of initial project budgets and running budgets, regular determination of work done and result forecast to the end of the project. Further, cost accounting, monthly reporting, and all balance-related postings are included. On the basis of the extensive reporting (targeted/actual cost comparison, cost manager, project report, actual/targeted hours worked comparison, overhead cost report, amendment report or project (result) lists of all projects realized by one business unit), the responsible managers can make justified project evaluations, project controls and variance analyses during the project period and derive appropriate management measures. Thus, Aristoteles includes all substantial elements for the risk management of the operational business. In big construction joint-stock companies it is of crucial importance to satisfy the information requirements of the investors. In this respect the system provides a transparent presentation of the financial, investment and profitability situation of the company. In the international construction industry the balancing rules according to IAS (International Accounting Standards) have already been used to a larger extent. In accordance with these rules the partial profits of the work during execution can be shown as realized even before completion of a long-term contract. The validity of Aristoteles will be outlined briefly. Major advantages using the system are highly enhanced accuracy of project controlling, systematic overhead allocation to projects, change of attitude of the project personnel due to increased cost consciousness and improved flow of information within the company.

Jan 1, 2003