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By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By A. R. Barnes, A. F. Newall

Keywords: Pyrometallurgy, furnace, smelting, spinel, PGM, phase diagrams As Merensky reef ores are replaced by UG2 ores, chromium levels in PGM smelting furnace feeds have steadily increased. Increased chromium levels lead to operating problems. Attempts to increase the chromium solubility in the slag by a variety of techniques create other difficulties. The authors have developed a technique for removal of the chromium spinel interface along with the matte for subsequent separation outside the smelting furnace by utilising differential solidification in the ladle. The process has been patented internationally with support from the Innovation Fund.

Jan 1, 2006

By D. Tsweleng

In the Evraz Highveld production process, iron ore is prereduced in rotary kilns prior to charging into submerged arc furnaces (SAFs). Owing to the highly aggressive slags that are formed within the combustion zones of these kilns, chrome-oxide-containing lowcement castables have been used for some years in the kiln lining. Due to concerns around the potentially harmful effects should Cr(V1) be present in the spent linings, Highveld and its suppliers of kiln castables devoted time to developing alternative chrome-free lining materials. Such materials needed to be cost-effective and ensure good performance and improved kiln availability. This paper discusses all the parameters surrounding this development. Keywords Low-cement castable, chrome-oxide free, chrome (VI), titaniferous magnetite ore, rotary kiln, submerged arc furnace, open slag bath furnace, Evraz Highveld Steel & Vanadium Limited.

Aug 1, 2013

By R. G. Votteler, A. C. Brent

"The business performance of mining corporations in South Africa is adversely affected by the constantly increasing electricity costs. The most commonly used power sources are the national utility supplier via a grid connection, and on-site diesel generators. Previous research has identified the renewable sources of solar photovoltaic (PV), onshore wind, and geothermal energy in hybrid versions with current sources as possible opportunities to counteract rising electricity costs. To provide a clear understanding of the new, developing market of renewable energy sources, this research is divided into two papers. This first paper investigates the internal business structure of mining corporations in order to evaluate electricity generating sources. The multi-criteria decision analysis (MCDA) method is selected as the most suitable approach for this. The paper identifies the criteria used by mining corporations to evaluate possible electricity generation sources for self-generation by means of the corporations’ own investment. Four mining corporations with several mining locations were interviewed. The interviews revealed both new and identical evaluation criteria when the findings were compared to earlier MCDA adaptations analysed in the literature review. The second paper (Part 2) combines current knowledge about the external macroeconomic environment with the findings about the internal environment described here. MCDA is adapted in Part 2 and implemented to analyse and compare current to hybrid renewable sources from the perspective of mines. IntroductionMining corporations in South Africa are currently adversely affected by increasing electricity prices. Electricity is supplied mainly by Eskom1 and, especially in remote locations, by on-site diesel generators (Boyse et al., 2014). Electricity price increases, emanating from diesel price hikes and Eskom, have escalated the total operational expenditure on electricity by the largest mining corporations from 8% to 20% of total operating costs in the past seven years (EIUG, 2015). The reliability of electricity supplied by Eskom has decreased drastically (Govender, 2008), and the prices will increase annually by at least 13% until 2018 (Numbi et al., 2014; Eskom, 2015b). In addition, the South African government plans to introduce a carbon tax on greenhouse gas emissions (Alton et al., 2014)."

Jan 1, 2017

By M. Mostert

Mining companies sponsor a range of non-core, corporate social responsibility projects to adhere to social and labour plans and environmental management prerequisites that form part of a mining licence application. Some companies go above and beyond such projects, sponsoring initiatives that generate renewable energy through solar power, wind energy, natural gas, etc. The challenge for these companies is to choose between a variety of projects to ensure maximum value, especially in times when the economic climate might be less favourable for such projects. The focus of this research was to analyse the concept of sustainability as it exists today, and to apply that to the triple bottom line accounting method in an attempt to quantify the sustainability of a project. Research was done on the methane burn-off project at Sibanye Gold?s Beatrix Mine to establish how such projects are planned and financed, and what impact they have on the triple bottom line of a company. The financial bottom line is, by definition, one that executives understand. This paper also proposes a quantitative method for defining the social and environmental bottom lines as well. By considering the financial, social, and environmental values, the study attempts to determine a monetary value for a sustainable renewable energy project. This monetary value can be compared to similar values obtained for other sustainable renewable energy projects under consideration. The research suggests that monetary value alone is not enough to base a sustainable decision on, and qualitative measures are suggested for use in conjunction with quantitative methods. The selection method proposed should assist the board of a mining company to choose the most sustainable option and the project that will add the greatest value to the company across all three bottom lines. It will also provide increased justification for such renewable energy projects, even in periods of harsh or uncertain economic climates.

Jan 1, 2014

By W. M. Jansen

In many mineral processing operations, the reported production figures for an accounting period may not make the best use of available data. While most of the mathematical approaches, such as check-in/check-out, mass balancing, used in effective metallurgical accounting strategies are well understood, the sources and magnitude of measurement errors generally are not. As part of the 'AMIRA P754-Metal Accounting and Reconciliation' project, a study was undertaken at the Northparkes copper/gold concentrator near Parkes, New South Wales to examine the data used in their concentrator metallurgical accounting system. This paper summarises the results of a detailed examination of the mass measurement systems around the concentrator as well as the primary sampling system used for grade estimation. The goal of this work was to develop practical techniques to quantify the error (ie both accuracy and precision) of the measured metal accounting information. With this information, statistical confidence levels for this data can then be calculated. If the errors are small, the effect of error in each piece of measured data can then be propagated to other calculated production figures such as recovery and feed grade using a statistical technique called `the propagation of error'.

Jan 1, 2007

By N. McEwan

Keywords: refractories, chromite, Marico This paper examines the role of refractory-grade chromite in refractories. The chromite deposit at Verref?s Marico Chrome mine is described. The refractory properties of chromite and their role in basic refractories are described. The properties and metallurgical applications of chrome-containing refractories are described and finally environmental issues associated with chrome-containing refractories are discussed.

Jan 1, 2011

By R. J. Hundermark

Keywords: Anglo American, Anglo Platinum Ltd, Waterval, Mortimer, Polokwane, ACP, pyrometallurgy, platinum, PGMs Anglo Platinum Ltd is the largest primary platinum producer in the world and operates three smelters in South Africa: Waterval, Mortimer and Polokwane. The operational details of the smelters are covered in previous reviews, thus only unit operations that have been upgraded are discussed. The most significant of the upgrades include the installation of a second ACP converter at Waterval Smelter in 2006 and the anticipated upgrade of Mortimer Smelter to 38MW in 2011. Several advances have been made in the smelting operations to improve the furnace stability and longevity. Control of the chromium input to each of the smelters has substantially allowed continued operations at levels below the spinel saturation point in slag, which results in lowered matte and slag temperatures. Mogalakwena concentrate, arising from the Platreef ore, is used to dilute high chromium-containing concentrates. In addition, furnace controls have improved in terms of crucible temperature and condition monitoring, improved feeding control, management of alarms and trips and having the quality of instrumentation and operational rigour required to support this. Advances have been made on the ACP converter in terms of good converter matte quality, and increased intensity and efficiency of operation. Combined with improvements to both the conventional and tower sulfuric acid plants, the emissions from Waterval Smelter have been reduced substantially since the introduction of the ACP. This is in spite of increasing metal throughput. The Anglo Platinum Ltd smelting operations have made significant progress since 2006 and further advances are envisaged to further improve on safety, reduce costs, increase efficiencies and throughput, while reducing emissions.

Jan 1, 2011

By J. Alexis, G. Ye, E. Burström

Over the past twenty years the 3 MW DC arc furnace at MEFOS has been frequently used for development of new processes. These processes include recovery of valuable metals from slag, sludge and dust from steel and other metallurgical industry, treatment of ashes from power plant and incinerators, smelting reduction of minerals and zinc recovery from EAF dust. The process characteristics of the DC arc furnace operation in terms of: ? selective reduction, ? total reduction, ? process stability and flexibility, ? dust carry-over, ? thermodynamic conditions provided in the hot spot area, ? precision in composing slag products These are analysed and described in this paper based on technical results from selected test campaigns over the years and thermodynamic considerations. The electromagnetic properties of DC arcs beneath the electrode have been studied by CFD simulation. The calculated result enables us to understand some interesting technical phenomena observed. The heat balance has also been considered based on data obtained from test campaigns and heat balance calculation.

Jan 1, 2004

By J. Kempken, R. Degel, J. Kunze, R. König

The FeNi technology is currently dominated by high-power submerged arc furnaces, often designed as smelter as "two-inline-solution". To achieve the intended high efficiency, state-of-the-art design in good correlation with ores and reductants and an integrated layout of the whole plant is of great importance. An introduction will be given to general aspects in the production FeNi, plus a detailed overview of design principles for large FeNi smelters and finally some examples of innovations and research projects concerning Fe-Ni.

Jan 1, 2007

By J. Muller

Keywords: Pyrometallurgy, blast furnace, slag viscosity, slag liquidus temperature, phase equilibria The viscosity of molten slag in blast furnace operations is an important process variable, influencing the rate and location of reactions inside the furnace, as well as the ease with which the final slag could be removed from the furnace. To optimize these processes, it is necessary to estimate the slag viscosity and liquidus temperatures as accurately as possible, and know the target values. Models to predict viscosities and liquidus temperatures, incorporating phase equilibrium calculations, have been developed and validated with measured data. Various diagrams have been developed to illustrate how the properties vary with composition and temperature, including pseudo-ternary diagrams of SiO2-MgO-CaO-Al2O3 for viscosity and liquidus temperature. Models were also applied and methodologies developed to analyse historical blast furnace operations and determine target values.

Jan 1, 2011

By D. H. Diering

The paper takes the reader into the depths of a modern ultra-deep South African gold mine and gives a perspective on the vertical and horizontal extent of the tunnel networks in such a mine. Depending on the mine design layout employed, tunnels once excavated are subjected to various levels of stress change over their life time, and the support requirements are explained. It is suggested that shotcreting is the only viable ultra-deep level support medium, and after looking at the latest developments, the logistical problems are put forward. In an effort to overcome most of these problems, the South African ultra-deep mining industry embarked on a collaborative research programme in 1998. The importance of tunnelling and in particular tunnel support as a critical technology for future successful ultra-deep level mining is stressed. While not yet fully ?on top of? these problems and challenges, our industry is now fully addressing them and we expect to make significant progress during the next 4 to 5 years.

Jan 1, 2000

In the 1980s and?90s the gold mining industry in South Africa came under pressure from the continued poor dollar gold price and escalating Rand based costs, furthermore the external impacts on the industry were changing. Thus, the Chamber of Mines (COM) shifted its focus away from many historical areas of support towards the new industry challenges in safety and health, labour markets, environmental responsibility, mineral rights legislation and social responsibility. During 1997 the lack of funds and the changes facing the tertiary institutions were often subjects of discussion at the various sub-committee meetings. The Metallurgical Sub-committee of the Chamber Education Fund or the Sub-committee of Consulting Metallurgists as it was known identified the need for the funding structure to change with the times. Up to this time the Chamber of Mines operated an Education Fund that supported mining industry academic departments at various South African tertiary institutions; these funds were derived exclusively from the country?s gold and coal mines the basis of Chamber membership. Funds of less than R5 million per annum were available for distribution by the three disciplinary sub-committees of mining, metallurgy and geology.

Jan 1, 2003

The roasting of sulphide ores and concentrates is often the first step in the production of metals or chemicals. In many processes, the production of sulphuric acid is viewed as a by-product, whereas in some plants production is an important economic factor. Regardless of the purpose, a pyrite roasting plant consists of mainly three plant sections: roasting, gas cleaning and sulphuric acid. With the addition of air, the pyrite concentrates are transformed into solid oxides and gaseous sulphur dioxide at temperatures of 600?1000°C. After cleaning and cooling, the sulphur dioxide in the roasting gas is further processed to sulphuric acid. Two types of reactors are used depending on the application: stationary or circulating fluid bed. For over 60 years, Outotec has progressively been developing the principle of fluidized bed technology in several different reactor types for a multitude of process applications. The versatility of the fluidized bed reactor system has manifested itself in the treatment of minerals, including solid fuels, and for metallurgical processes both in the ferrous and non-ferrous fields. Process applications have included roasting, calcining, combustion and charring of coals, as well as off-gas treatment. This paper provides a summary of the pyrite roasting technology currently used along with a simple cost comparison of pyrite roasting and sulphur burning processes.

Jan 1, 2009

By P. Kluge

Mining engineers frequently encounter complex design problems for which the critical components of the design are difficult to quantify or compare. Teams of people typically work on these designs and human perceptions and judgments play a strong role. To assist with this process, the analytical hierarchical process (AHP) as a decisionmaking tool is described in this paper. Although the technique is used in many other disciplines, it is currently not widely used in mining engineering in South Africa. To use the AHP process, the problem should be treated as a hierarchy that defines the goal, the alternatives to reach it, and the criteria for evaluation of these alternatives. Pair wise comparisons are conducted on the criteria of the hierarchy to establish priorities. The value of the technique is that it is simple to test for consistency amongst the pair wise comparisons to ensure that the answer obtained is better than that provided by a random selection. To illustrate the technique, the use of a backfill support system in a platinum mining project was investigated. Ten design parameters, which will be impacted by the use of backfill, were identified and weighted according to their relative importance. The result of the AHP evaluation was that the use of a backfill support system should be preferred to a conventional support system at the mine.

Jan 1, 2011

By A. McLean, M. Iwase, K. Wakimoto, K. Katogi, Y. Kikuchi

One of the greatest obstacles to the application of physical chemistry principles to the elucidation of slag-metal reactions is a lack of knowledge of activities of the reacting species. To a large extent, oxygen potential of the slag phase governs iron and steelmaking practice. Without oxygen control by means of appropriate sensors, the behaviour of the other elements cannot be managed. In this paper, measurements of the FeO activity with various types of electrochemical FeO sensors will be described together with examples of their applications for improved strategies toward better practice for ladle metallurgy and sulphur and manganese distributions between slag and metal phases during steelmaking. Measurements of FeO activity have also been made in order to improve dephosphorization reactions. This type of work has led to significant reduction in volume of slag generated within the steelmaking vessel, which in turn has important implications for refractory wear, metal yield, alloy recovery and improved productivity. Finally, an on-line sensor is described that permits the oxygen potential to be determined for both the metal phase and the slag phase during steelmaking in the BOF.

Jan 1, 2004

By E. S. Schubert

Keywords: co-generation, furnace CO-gas cleaning, disintegrator scrubber, Theisen In a closed, electric, reduction furnace, no oxygen enters the furnace from the surrounding environment. The off-gases are thus not ?burnt? and therefore contain a considerable amount of CO and H2. Traditionally these gases have been captured and burnt in a flare stack. Recent developments have led operators of such furnaces to revise this strategy and to consider utilising these gases as a fuel for gas-fired generator sets to produce electricity, thus becoming more energy efficient. On 31 March 2010 the new emission standards, in accordance with the Air Quality Act, Act 39 of 2004, were promulgated. The minimum emission standards according to the act require that the particulate matter emissions from the primary fume-capture systems on closed furnaces for ?new plants? in ferroalloy and calcium carbide production not exceed 50 mg/Nm³ and 25 mg/Nm³, respectively. By implementing co-generation, the producer automatically complies with the new environmental emission standards for an off-gas. As much as 30% of the electrical power cost, which is set to double in the near future, can be saved by partly generating one?s own electrical power. In December 2010, the National Treasury published a discussion paper for public comment, one entitled ?Reducing greenhouse gas emissions: The carbon tax option?. Irrespective of how the tax is finally implemented, it will result in an increase of production costs in affected industries. This paper focuses on the characteristics of a furnace-off-gas cleaning system for closed ferroalloy smelters, characteristics that meet the requirements of both reducing solid-matter emissions and operating a safe and reliable gas plant.

Jan 1, 2011

By L. Arnberg, E. Ott

The microstructure of ferrosilicon is important since it controls the disintegration of the material during crushing and thus the generation of fines. Therefore a study of the microstructure formation during solidification of pure FeSi(75wt%Si) and FeSi(75wt%Si) containing 1.2wt%Al and 0.2wt%Ca has been initiated. The material has been cast into rods of 8mm diameter, which have been remolten by induction heating and directionally solidified in a Bridgman apparatus. This allows the temperature gradient and the growth rate to be controlled independently. The temperature history during solidification has been recorded by a thermocouple in the melt. Growth rates have been varied between 5 and 400µms-1 and temperature gradients between 3 and 14°Kmm-1. The microstructures show a large dependence on the solidification conditions. The crack formation in the alloys has been studied and found to be strongly related to the microstructure.

Jan 1, 2004

By K. Coleman, C. Visser, N. Selby, X. W. Pan, T. Letwaba

A prototype weightometer soft sensor is under development at DebTech, De Beers in partnership with Venetia Mine. Its main function consists of an online data source; data validation; dynamic weightometer models; online detection of weightometer failure; alarming and replacing a weightometer when it fails. 31 dynamic models have been developed. All models with R2>= 85%are accepted as good models and they generally have satisfactory results with a daily error of less than 8% within 90% confidence level. By using those models, a set of soft sensors can be set up to cover all weightometers in the entire processes starting from primary crushing to the stock piles of dense medium separation (DMS). Some practical issues and concerns on model development are discussed, including data collection, data analysis, data pre-processing, variable selection, time delay, model training and model validation. When deploying the weightometer soft sensor system, the potential benefits could include: reduction in plant downtime; reduction in unplanned maintenance and even replacement of non-critical weightometers, particularly where nuclear weightometers are used. Keywords: soft sensor, weightometer, dynamic modelling, neural network modelling

Jan 1, 2003

By M. Nete

Qualitative analysis of three mineral samples from northern Mozambique was accomplished by X-ray diffraction (XRD), microscopy, scintillation, and magnetic determination. Chemical characterization was accomplished using ICP-OES and pressed powder XRF after dissolution using microwave-assisted digestion and flux fusion. The samples consisted of a mixture of minerals with tantalite as the major component, with minor amounts of microlite, quartz, mica, accessory garnet, and tourmaline. Incomplete dissolution was obtained using microwave digestion, with maximum recoveries of 90.25 ± 0.06% and 88.90 ± 0.04% for Nb2O5 and Ta2O5 respectively. Complete dissolution using Li2B4O7 resulted in recoveries of 98.5 ±0.2% Nb2O5 and 100.4 ± 0.3% Ta2O5.

Jan 1, 2012