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

Jan 1, 1999

By A. S. Macfarlane

The introduction of new technology into mining operations is seen as a strategic necessity by many mining companies, in order to improve safety and to improve operational effectiveness. Many attempts have been made in recent years to introduce new technologies into mining operations in southern Africa. Amongst these are noteworthy successes, as well as some disappointing failures. Often, the reason for failure does not lie with the technology itself, but with the work system into which the technology is introduced. Such failures may come with a significant opportunity cost, and have a detrimental effect on future development, simply because the system has not been adequately engineered, and the risks have not been adequately assessed and managed. This paper examines the reasons for such failures, and proposes a methodology to be followed to ensure successful and sustainable implementation of new technologies, such as to reduce technical and financial risk to the company, and to energize the workforce into ensuring the initial objectives of the project are met. The paper also focuses on the application of appropriate technology, and the development of technological applications which are commensurate with the level of development of the work environment into which it is introduced. The paper therefore focuses on the application of risk management, change management, systems engineering and feasibility analysis as being key elements of a successful and holistic technology implementation programme.

Jan 1, 2001

By J. Persson, N. G. Bliss

Electric furnaces used for smelting and those used for scrap melting exhibit different performance profiles in terms of electrical characteristics. However, the underlying principles are the same for either case. The rationalization of these variables is a major concern for furnace operators and designers. This paper presents the results of a two year study of high speed real time data from a number of electric furnaces around the world, covering a very wide range of design philosophy and product manufacture, to provide a better mathematical insight into rationalizing the furnace operation.

Jan 1, 2004

By Ch. Schroeder, F. Collin, R. Charlier, Y. J. Cui

The paper proposes two numerical models ot the mechanical behaviour of chalk. First, an elasto-plastic constitutive law reproduces the different plastic mechanisms of the chalk and the influence of pore fluids by introducing the concept of suction. Secondly, a model able to reproduce time dependence behaviour. Eventually, the paper gives a simulation of an academic reservoir during depletion and waterflooding phase. Der Artikel stellt zwei numerische Modelle des mechanischen Verhaltens der Kreide vor. Das erste ist ein elasto-plastisches Modell, das verschiedene plastische Mechanismen der Kreide und den Einfluss von Porenflüssigkeit, unter dem Begriff der Suktion, reproduziert. Das zweite Modell berücksichtigt darüberhinaus das zeitabhängige Verhalten. Schliesslich zeigt die Veröffentlichung eine Simulation einer theoretischen Lagerstätte während der Entleerung und der Wasserinjektion. L'article propose deux modèles numériques du comportement mécanique de la craie. Le premier est une loi élasto-plastique qui reproduit les différents mécanismes plastiques de la craie et l'influence du fluide interstitiel par l'introduction de la notion de succion. Le second est un modèle prenant en compte les effets différés. Enfin, l'article présente une simulation d'un réservoir académique durant les phases de déplétion et d'injection d'eau.

Jan 1, 2003

By A. Bhattacherjee

The Shewhart [X]?and R charts are still the most popular control charts in use today for continuous monitoring of quality data. However, for these charts to function properly, the underlying assumption of normality and independence of data must be satisfied. When either independence and/or normality of data are not present, which is a common feature of ore quality data, an application of the conventional Shewhart [X]?and R charts may introduce false alarms in the analysis of the data. To address these issues, a guideline is proposed for construction of appropriate univariate and multivariate control charts for a variety of situations. A use of this guideline to a bauxite mine suggested the construction of special cause control chart for the analysis of individual variables namely, Al2O3% and SiO2%; whereas, the multivariate T2 chart based on residuals is proposed for the bivariate analysis of the variables. The case study clearly revealed that without considering the data correlation, one may be in a state of false impression about an out of control condition while using the Shewhart [X]?and R charts for univariate and the Hotelling T2chart for multivariate analysis. To compare the effectiveness of the control charts, specifically the Shewhart [X]?and the special cause control charts, a simulation study was conducted. It was found that the conventional Shewhart chart provided lower probability of coverage than the special cause control chart. It was also revealed that the quality specification of Al2O3% is met as the variation of Al2O3% is well within the specification limits; whereas, it is difficult to meet the quality specification of SiO2% on a regular basis.

Jan 1, 2002

By J. van Deventer

Testwork was done with two different adsorbents, Dowex-Minix gold-selective resin and activated carbon, to detemine their relative performances with regard to gold recovery from clarified low-grade solution employing a fixed-bed operation. The mill discharge from the milling-in-cyanide operation at a Witwatersrand gold mine was used as feed to the adsorption columns. A small amount of gold was leached during the milling process, so that this solution simulates, to a certain extent, a low-grade solution representative of a heap-leach operation. A speciation of the feed solution was done to establish which metal complexes were present in the milling-in-cyanide solution. This information was necessary to interpret metal loadings on the resin, as base metal cyanide species and their respective charges have an effect on the final gold loading capacity of the resin. Equilibrium isotherms were established for both adsorbents to estimate the rate of adsorbent flow anticipated for this specific feed solution. Breakthrough profiles were obtained at two different superficial linear velocities for each adsorbent. Mass transfer zone heights determined from the test work and the elution/regeneration time requirements were used to size a 150 m3/h full-scale plant for both adsorbents. A counter current configuration of adsorption columns, using three columns, should be suitable to recover gold effectively and to produce an effluent with a gold concentration below 0.01 mg/l. Based on the results obtained from the breakthrough tests, a preliminary techno-economic comparison was done between the resin-in-solution and carbon-in-solution options for the recovery of gold from low-grade solutions. This study indicated that the capital expenditure for a carbon-in-solution plant would be about 33 percent higher than that of a resin-in-solution plant. The operating expenditure for a resin-in-solution plant is expected to be only 60per cent of that for a carbon-in-solution plant. Keywords: resin-in-solution, carbon-in-solution, heap leach.

Jan 1, 2000

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 S. Lin

A new hydrogen production process, named the HyPr-RING, has been proposed. Fundamental concept of the HyPr-RING is integration of water carbon reaction, water-gas shift reaction and CO2 absorbing reaction in a single reactor. Firstly, thermodynamic analysis was done to judge the possibility to realize the process. It was found that high pressure and temperature condition, such as 20 MPa and 1000 K, is required to promote this integrated reaction. Next, experimental verification of the new process was done under the high pressure and temperature reaction conditions. As the results, integration of above three reactions in a single reactor can be done successfully and produced a large amount of hydrogen as estimated by thermodynamic analysis. Experiments showed that organic materials including coal, heavy oil, biomass, plastics can be used in this process. In the gaseous phase, no pollutants such asH2S, SO2, COS are detected so that gas cleanup system is not required for power generation when this process is used. Finally, a process design was made to estimate process efficiency. Theoretically, 1 mole of carbon can generate 2 moles of hydrogen and cold gas efficiency of this process estimated as more than 80 per cent. The process potentially reduces hydrogen production cost compared with the conventional hydrogen production methods. Keywords: Hydrogen, Fossil fuel, Energy, Process, Supercritical water

Jan 1, 2001

By R. Butcher

Mud rushes are hazardous occurrences that have occurred frequently in mines in South Africa, and have been the cause of numerous fatalities in the past. Mud rush incidents not associated with accidents are believed to be common occurrences that are not generally reported. Many such incidents are probably associated with the operation of chutes and box fronts. This paper describes the conditions necessary for mud rush occurrences, postulated mud rush mechanisms, and methods of combating the mud rush hazard.

Jan 1, 2005

By R. G. B. Pickering

Resue mining was practiced extensively in the East Rand in the first half of this century. The obvious benefits were that a higher grade of ore was trammed to the surface. The disadvantages were slow rates of face advance and an extremely labour-intensive method of mining. A collaborative effort by personnel from Avgold?s Target Gold Mine and Sandvik Tamrock has resulted in the design of a method of resue mining which can be totally mechanized. The purpose of this paper is to describe the methodology used and the proposed new mechanized resue mining method.

Jan 1, 2000

By H. J. Ilgner

The paper reviews the results to date of an integrated research programme currently being conducted by CSIR Mining Technology, aimed at impacting significantly on concentrated mining with face advance rates of up to 20 times faster than presently achieved. Consideration is given to the interplay between innovative technologies for continuous non-explosive mining or rock comminution underground and lateral hydraulic transportation in cross cuts, haulages and eventually hydro hoisting. Novel technologies for underground comminution of reef and development waste and an innovative pumping system suitable for the hydraulic transportation of coarse comminuted rock are reviewed. Emphasis is placed on South African gold mine reef and waste samples comminuted by electric shock wave comminution technology. The innovative TORE® pump system appears to be well suited for the successful hydraulic transportation of rock, produced by electric shock wave comminution, at solids concentrations between 45 % and 67 % by mass.

Jan 1, 1997

By G. R. Lane, A. Vermeulen, S. van de Venter, S. Bhoowanpursadh

Over the past two years Anglo Platinum made use of the specialist skills of Cyest Corporation to develop a Mine Optimization Tool (MOT) to enhance the current suite of in house mine planning tools and processes. The application was built in a multidimensional modelling environment developed by Cyest called CarbonL. This has allowed complex modelling that is transparent to the business users and therefore is not prone to the ?black box? approach that generally exists with these types of complex tools. The purpose of the MOT is to have an integrated software tool that can schedule production activities by half level for a shaft complex, while at the same time integrating the economics concomitant with that schedule. The tool allows the user to configure all activities relevant to the selected mining method, define the mine design parameters and geological parameters, define scheduling rules and then schedule all activities. This allows the user to test various production strategies and schedules very quickly and easily in terms of shaft value, costs and revenue profiles, labour complement and production ramp up so as to determine the option that best fits the overall strategy. This allows assessments of multiple scenarios in a relatively short period of time, after which only the best option is taken forward for graphic design and scheduling. This paper discusses briefly the rationale behind the Mine Optimisation Tool and the underlying workings of the modules that comprise the tool. It also covers the life cycle of this tool from the original prototype through to the final Mine Optimisation Tool software and discusses the positioning of the final tool.

Jan 1, 2007

By A. V. Peake

Continuous Mining presents an opportunity to extract reef in the stope ?continuously? by integrating the drill and blast activity using propellants or low energy charges. To date, the majority of effort spent on Continuous Mining systems has focused on developing an effective rock breaking process (micro breaking process), and to some extent, eliminating fumes and dust. The perceived benefits of applying low energy charges have been identified as: ?Concentrated mining yielding face advances of 40 to 60 m per month ?Lower stoping widths through better-controlled breaking ?Increase in the advance per blast ?Increase in labour productivity ?The potential to mine reefs where specific conditions make conventional mining uneconomic e.g. reefs with shales in the immediate hangingwall. However, the ability to successfully use low energy charges to create a ?Continuous or Semi-Continuous? mining method is dependent on overcoming the following challenges. ?Improving reliability of rock breaking. This is dependent upon achieving:? Improved drilling accuracy, and? Successful stemming or gas confinement, particularly in fractured rock ?Reducing gas and dust levels ?Reducing high costs. Through the research carried out in Future Mine, many different low energy rock breaking methods and systems were investigated. Whilst detailed results cannot be published here, the guidelines for overcoming low energy rock breaking challenges are discussed.

Jan 1, 2003

By M. Syamujulu

In 1994, Nkana smelter commissioned a multimillion US Dollar Chilean Teniente converter (CT) in its operations in order to improve its smelting technological base. The main objective was to reduce the overall smelting energy costs and increase the sulphur capture for sulphuric acid production to support the company?s leaching operations at Nchanga tailings leach plant. A decade of CT operations have since ensued following its installation and start-up. This paper provides a technical and operational audit of the performance of the CT in the first 10 years of its operations at Nkana smelter.

Jan 1, 2005

By J. P. Josien, Didier C.

ABSTRACT: France now faces the closure of most of its mining sites. Surface instability risk may sometimes remain, especially where large underground voids exist. This paper illustrates the importance of failure mechanisms identification in order to define properly how to manage the residual risk. RESUME: La France fait aujourd’hui face à la fermeture de ses exploitations minières. Des risques d’instabilités de surface peuvent persister, notamment lorsque des vides résiduels existent au sein des travaux souterrains. L’article illustre l’importance que présente la nature des mécanismes de rupture potentiels dans le choix des mesures compensatoires à adopter pour gérer le risque résiduel à long terme. ZUSAMMENFASSUNG: In Frankreich stellt sich derzeit das Problem der definitiven Schliessung des meisten Bergwerke. In manchen fällen ist die Stabilität der Oberfläche nicht garantiert, speziell wenn unter Tage nicht verfüllte Hohlräume verblieben sind. Dieser Bericht zeigt die Wichtigkeit, bei der Auswahl geeigneter Langzeit-Risikomanagementmethoden, der verschiedenen Mechanismen mit denen ein eventueller Bruch an die Tagesoberfläche geraten kann.

Jan 1, 2003

By C. Sensogut

The phenomenon of spontaneous combustion is one of the major hazards encountered in underground coal mines both from the safety aspects and on economic grounds. Every occurrence, however small, if not tackled effectively in the early stages can develop into open fire, or explosion of gas or coal dust. In terms of economy, even dealing with small incidents may be costly in terms of labour and materials, and in case of a sealing off of a district being necessitated, the loss of face equipment and sterilization of reserves is potentially great. Therefore, expense and effort in prevention and detection of such heating, together with a high state of readiness for dealing with likely event, is completely justified and may be considered as a sound investment. In order to achieve this investment, it may be worth to pinpoint the centre of the fire occurring due to autogenously heating which is supposed to be great assistance to inert it at a least cost and time. Therefore, it is the aim of this work to model the spontaneous combustion in the goaf.

Jan 1, 2002

By J. P. Harrison, J. A. Hudson

ABSTRACT: Given the current widespread use of numerical models for rock mechanics and rock engineering, and the ‘Technology Road Map’ theme of the Congress, it is timely to consider the key issues in matching numerical models to rock engineering problems. The three main aspects are: a) identifying the mechanisms, variables and parameters that are relevant to a particular rock engineering project; b) establishing the content and mode of operation of a particular code; and c) deciding whether a particular code provides an adequate model for a particular project. We summarise the key issues, highlighting the concept of rock mass domains, validation and the ability to present the results of a modelling exercise. We include three compact numerical modelling case examples to illustrate the points. Finally, we also present a ‘roadmap’ to assist in the process of matching a numerical model to the rock reality. RESUME: Considérant l’utilisation généralisée des modèles numériques en mécanique des roches et en ingénierie au rocher ainsi que le thème du congrès ‘technology road map’, il est opportun d’aborder les problèmes essentiels liés au choix des modèles numériques dans les problèmes ingénierie au rocher. Les trois aspects principaux sont : a) l’identification des mécanismes, variables et paramètres appropriés au projet considéré, b) la définition du contenu et du mode de fonctionnement d’un code numérique donné, et c) la possibilité de décider si un code donné fourni un modèle approprié au projet considéré. Les points clés sont résumés en mettant en évidence les notions de “massif rocheux”, de validation et de capacité à présenter les résultats d’une approche numérique. Nous présentons trois brèves études de cas qui illustrent ces points. Enfin, nous proposons aussi un logigramme pour aider au choix d’un modèle numérique approprié pour représenter la réalité d’un problème au rocher. ZUSAMMENFASSUNG: Im Licht der augenblicklich weitverbreiteten Nutzung von numerischen Modellen in der Felsmechanik and im Felsingenieurbau und unter Beruecksichtigung der Themenstellung des Congresses “Technology Road Map”, erscheint es an der Zeit die Kernprobleme, die sich mit Fragen der Abstimmung der numerischen Modele mit Hinblick auf ihre Anwendbarkeit im Felsingenieurbau beschaeftigen, naeher zu befassen. Die drei wesentlichen Aspekte sind: a) Identifizierung der Mechanismen, Variablen und Parameter, die fuer ein bestimmtes Projekt im Felsingenieurbau von Bedeutung sind; b) die Festlegung des Inhalts und des Modus Operandi eines bestimmten Codes, und c) die Entscheidung darueber ob ein bestimmter Code ein hinreichendes Model fuer ein bestimmtes Projekt ergibt. Wir fassen die wichtigsten Punkte zusammen, heben dabei das Concept der Gesteinsmassen Domaenen (Rock mass domains) hervor, und erarbeiten ihre Beurteilung und die Moeglichkeit diese zu praesentieren in den Ergebnissen einer Model Uebung. Wir schliessen drei Beispiele von numerischen Modellen ein in denen diese Punkte erlauetert werden. Zuletzt schlagen wir eine “Roadmap” vor, um dem Prozess der Abstimmung des numerischen Modells mit der “Felsmechanischen Wirklichkeit” zu unterstuetzen.

Jan 1, 2003

By R. Thomason

Thank you Dr Barcza, President of the South African Institute of Mining and Metallurgy, for inviting me to share our experiences in Australia as regards the competency movement and my Association?s experience in assisting engineers become managers. This is my second visit to South Africa, and I am struck by the similarities between our countries. This extends to the professional issues associated with engineering and competencies in particular. I propose to outline two exciting stories today. ? Development of competency standards for professional engineers in Australia. ? Development of a management programme which has assisted professional engineers regain positions of leadership in Australian industry and government. First of all I would like to outline the Association of Professional Engineers, Scientists and Managers, Australia(APESMA).

Jan 1, 1997

By J. P. Theron

Paper written on project work carried out in partial fulfilment of Phd.(Process Engineering) degree Process modelling is an essential element in the development of advanced (model-based) process control systems, accounting for up to 80% of the cost of development. Often, models based on historic process data are the only viable option when dealing with processes that cannot be modeled cost-effectively from first principles. Despite major advances that have recently been made in the field of nonlinear process modeling, some basic idea of the dynamic behaviour of a process system is important prior to system identification. While many process systems seem unlikely to be linear, the possible nonlinear aspects of their dynamics are not necessarily supported by the data. This may have significant implications for subsequent system identification or interpretation of the data. For example, it is quite possible that an underlying nonlinear deterministic signal may be obscured by a high degree of measurement or process noise, to the extent that it may be critical in the choice of model to fit to the data. The method of surrogate data analysis has recently been proposed as a means to classify the underlying dynamics of complex systems, and in this paper the use of Fourier transform surrogates to classify process systems is explored. Keywords: modelling, process control, simulation, surrogate data analysis, nonlinear systems.

Jan 1, 2004

By W. Kotze

The gold mining industry has mainly relied upon the use of highly polluting chemicals, such as mercury and cyanide to recover gold from its ores. The Coal Gold Agglomeration (CGA) process was developed some years ago and has the advantage in that gold is recovered by a procedure which has little or no negative impact on the environment. A gold ore containing liberated gold particles is contacted with coal-oil agglomerates, where by the gold is recovered into the coal/oil phase. Laboratory scale batch tests were performed on an artificial mixture gold slurry and gold recoveries of up to 85% were found under optimized conditions. By recycling the coal/oil phase, it was found that the gold loading onto the agglomerates was increased. Tests performed on an industrial ore yielded slightly lower gold recoveries, and X-ray Diffraction (XRD) analysis on the coal/oil phase showed that minerals other than gold was recovered into this phase. A comparative study was conducted whereby the CGA process was compared to mercury amalgamation. Gold recoveries obtained through amalgamation were 15% lower than by the agglomeration process, which indicates that this process can be considered favourably as an alternative to amalgamation.

Jan 1, 2000