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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

As the world continues to face the turmoil of the economic environment, legislative prerequisites and physical conditions the intervention of technological development is vital for the continuation of the ancient source of revenue: mining. The Palabora underground mining project is a state-of-the-art shaft mining system that will prove to be a benchmark in its field for years to come. An integration of modern technology?both in application and development?has resulted in a shaft system that is intrinsically holistic. Every aspect of the mining and production process has undergone thorough investigation, simulation and innovation to ensure that every component is selected by design and not simply conforming to past practice or trends. The process philosophy includes proven technology such as to promote the lowest operating cost and process time with the highest yield. The underground mining system is in the final stages of commissioning and will shortly be producing a nominal 30 000 tons per day with a predominantly automated system. This paper discusses the complete state-of-art shaft system developed for the Palabora underground mine, and refers particularly to the headgear, the winders, the conveyances and the shaft guide system, as well as the loading system developed specifically for the high performance requirements of the mine.

Jan 1, 2000

By G. H. Lind

This paper discusses the traditional costing approach currently used in the underground coal mining industry. Activity Based Costing (ABC) is identified as being a potentially more effective manner in which to cost underground coal mining systems. With the use of a costing framework developed by the author incorporating new thinking to eliminate the shortcomings identified in the traditional costing approach, a comparison of two types of underground coal mining systems, viz. continuous miner and longwall, is conducted. It is found that under certain criteria, in all cases, irrespective of the way in which the systems are costed, the continuous miner system is currently the better investment. It is also observed that when a system is costed using ABC that better investment decisions result when compared to costing the same system using traditional costing techniques. It is further seen that traditional costing techniques tend to overestimate the total costs of a mining system. This paper shows one application of ABC that can be incorporated as a management tool.

Jan 1, 2001

By J. Kuijpers

Failure and fracturing are often regarded as synonymous. While this is obviously true in an environment dominated by tensile stresses, it is still not clear how failure and macro fracturing are related in a compressive stress environment. Excavations at great depths are typically subjected to compressive stresses only. The fracturing observed around such excavations is therefore commonly assumed to be induced by such compressive stresses. The physics of such a phenomenon have unfortunately never been explained properly, so that the formation of these so-called extension fractures still remains a mystery. As the presence of fractures is an important factor affecting the stability of underground excavations, it is of practical relevance to understand their formation. In this paper, a possible explanation is proposed. It is argued that fracturing in a compressive stress environment is a secondary effect. Primary failure, in the form of micro fracturing and associated damage is assumed to precede the major fracture processes. The fractures are thus generated in response to material failure and may not directly be the cause of failure. The implications for material response and behaviour are discussed. Keywords: micro fracturing, macro fracturing, extension fractures, failure, compressive stresses, damage, excavations.

Jan 1, 2000

By F. Peer

This Technical Note was presented as a poster at the Western Cape Mineral Processing Symposium held in August 2001 The cleaning of fine coal (-1000 µm) in today?s coal preparation plants is an economically important factor. Coals with high ash contents are, in general, commercially undesirable. Current well-known techniques for treating fine coal include froth flotation and spirals. The primary critical factor with regards to spirals is the efficiency of the process whereas that of flotation, is the cost of there agents used. Research into enhanced gravity separation techniques has resulted in several commercially available enhanced gravity separators. This project was based on a preliminary investigation into the feasibility of one such separator, to effectively treat fine (-500 µm) coal. Experimental variables included particle size and speed of rotation of the said instrument. The performance of the separator was compared to the results obtained from liquid density separations done for the two coal fractions evaluated. From the results obtained in this preliminary study it appears that the piece of equipment investigated does not measure up to expectations. Recommendations for further investigation include the evaluation of the instrument on other South African coals to obtain conclusive results.

Jan 1, 2002

By G. Bacon

The past decade has witnessed unprecedented growth in the development and implementation of solvent extraction technology in the extractive metallurgy of nickel and cobalt. Solvent extraction is proving to be a powerful tool, opening new opportunities for simpler, more cost efficient and environmentally sound metal refining processes. These advances, however, could not have been possible without the cooperative efforts between the nickel industry and the people and organizations involved with reagents, materials and equipment development and supply as well as solvent extraction research, aided by the accumulated knowledge and practical experience from the copper and uranium solvent extraction operations. This paper provides an overview of these developments and some of the challenges ahead.

Jan 1, 2002

By A. J. Van Der Merwe, J. F. Erasmus

One of the valuation approaches applied to Advanced Exploration Areas and Pre-Development Projects is the so-called ?in situ Mineralization Method? or the ?Yardstick Method?. This method is based on the concept of a known undeveloped Mineral Resource being worth a certain fraction (the ?Yardstick?) of the contained commodity value (?metal in ground?), using commodity prices ruling at the date of valuation. The Yardstick value is derived usually from an average market-based figure obtained from an analysis of recent transactions and is expressed as a monetary value per ounce or per tonne. It maybe modified to accommodate the quality (e.g. grade) and category (e.g. confidence level) of the Mineral Resource/Reserve involved and the time, effort and expenditure expected to be involved in bringing the project to fruition. Some eighteen recent and relevant transactions were analysed, allowing the following general conclusions to be reached: ? a Yardstick with which to value undeveloped PGE mineral resources is likely to range between 0.5% and 2.5% of the in-ground contained metal value ? the expected method of mining (especially with regard to mining costs) and the grade of the mineralization both have a strong influence on the Yardstick ? the status (classification) of the Mineral Resource has some influence on the Yardstick and ? the ruling price of platinum and the regional location of the deposit appear to have insignificant influences on the Yardstick.

Jan 1, 2006

In ilmenite smelting, the FeO content of the feed material (nominally FeO.TiO2) is decreased by reduction with carbon. In a parallel reaction, a significant amount of the TiO2 is reduced toTi2O3. One of the striking features of these reactions is a consistent relationship between the extents of FeO and TiO2 reduction; this relationship is independent of furnace size. It was recently proposed that this relationship follows from the solidification behaviour of the slag, where the final slag composition corresponds to the minimum melting point (?eutectic groove?) in the FeO-TiO2-Ti2O3 phase system; the hypothesis is that solidification equilibrium with the freeze lining stabilizes the slag composition. If this is the case, the system of slag and freeze lining must be capable of correcting two types of disturbances: thermal and compositional. Thermal disturbances result from incorrect power input, for the feed rates of ilmenite and reductant. For example, excessive power input will tend to overheat the slag, causing the freeze lining to melt partially, establishing a new steady-state heat loss from the furnace. Compositional disturbances result from an incorrect reductant input for the given power and ilmenite input. In this work, the dynamic response of the slag and freeze lining to different inputs (flow rates of ilmenite and reductant, and power input) is modelled. The model is based on solidification equilibria, and quantified heat loss through the freeze lining. The conclusion is that the solidification equilibrium cannot constrain the composition to the eutectic groove for typical operating conditions. Keywords: ilmenite smelting, freeze lining, solidification, high-titanium slag

Jan 1, 2004

[Dr. N.A. Barcza (Chairman) Mr. R.J. Linnell (Vice Chairman) Mr. J. Basson Dr. L.A. Cramer Mr. W.A. Gericke Dr. N.C. Machingawuta Mr. C.S. Mahony Dr. L.R. Nelson Mr. D. St J. Slater Mr. B.J. van der Walt INFACON X TECHNICAL PROGRAMME COMMITTEE Dr. L.R. Nelson (Chairman) Mr. W.A. Gericke (Vice Chairman) Mr. W. Barrett Mr. T.R. Curr Dr. O.F.R.A. Damm Prof. R.H. Eric Mr A.M. Hearn Mr. A.R. Jamieson Dr. N.C. Machingawuta Mrs. L. Mthombeni Mr. F.X. Prins Mr. J. van Tonder ]

Jan 1, 2004

By M. Kuchta, A. Newman

LKAB’s Kiruna Mine, located above the Arctic Circle in northern Sweden, is the second-largest underground mine in the world today. The orebody is a world-class high-grade magnetite deposit, from which three raw ore products are extracted. We use mixed integer programming to determine a production schedule, i.e., which production blocks to mine, and when to start mining them, so as to minimize deviation from planned production quantities while adhering to the operational constraints of the mine. The resulting model contains thousands of binary variables and a commensurate number of constraints, precluding us from obtaining a schedule in a reasonable amount of time. We describe a method that builds on prior, related work, to expedite solution time. Keywords: underground mining, production planning, optimization, integer programming

Jan 1, 2003

By T. J. Kolokoto

This paper is based on a project conducted at Khomanani 2 shaft, Anglo American Platinum Limited. The main objective was to find an alternative support element in stopes to address the falls of ground (FOG) problem experienced at this shaft. Literature review was the major method used in the investigations. Resin bolts or any 1.5 m in-stope roofbolts were considered. The shaft was making use of 0.9 m long friction bolts, and these could not prevent the FOG experienced. Observations indicated that the FOG resulted in fall-out thicknesses averaging to 1.1 m, which is greater than the supported length of the friction bolts. The implementation of 1.5 m long bolts was recommended as a result of the project. These bolts will be able to address the fall-out thickness and provide sufficient support resistance to mitigate FOG. The chosen support element will result in a relatively small increase in support costs.

Jan 1, 2013

By Huang Zhiwei, Paul Skayman, Kevin Holley

In 1989 The First Brigade for Geology and Mineral Exploration of Qinghai Province discovered gold at Jinlonggou and Qinlongtan, Tanjianshan. Between 1992 and 2002 small scale mining was carried out at these sites using underground mining methods at Jinlonggou and an open pit at Qinlongtan. During 2003 and 2004 geotechnical investigations were carried out in support of a bankable feasibility study. An important objective of this investigation was to meet both internationally accepted standards and codes of practice, and also to satisfy the Chinese requirements. Extensive use of local experience was utilised. Where possible geological drilling information was incorporated into the assessment. Extensive geotechnical mapping of surface and underground exposures, and index testing to gain an appreciation of rock intact strength were used to characterise the sites. Rock mass classification (MRMR) was used to assess indicative overall slope angles and appropriate bench stack heights for the proposed pits at Jinlonggou and Qinlongtan. Measured discontinuity orientations were used in kinematic analysis to assess stability of possible pit slope geometry at a batter and overall scale to provide preliminary recommendations for the pit slope configuration. Numerical modelling was also carried out to improve the understanding of anticipated pit behaviour. Site investigation and preliminary geotechnical design details, that incorporate site specific conditions for the formation of open pits at Tanjianshan, are discussed in this paper.

Jan 1, 2006

By B. Samanta

LHD (load haul dumper) is now used as a loading machine for intermediate mechanization in underground coal mining. For survival in the intense competition in the global business environment in recent years it is essential that LHD machine should be reliable and maintained effectively and efficiently. This paper seeks to study the reliability, availability and maintainability (RAM)of an LHD machine with failure and repair data by Markov modelling. The constraints and reasons for machine unavailability are outlined. The reliability and maintainability of an LHD and its subsystems are evaluated. Possible modification or design alternatives are highlighted. Reliability and maintainability of an LHD system are disappointing. There is room to take decisions on optimal maintenance planning and machine improvement from this analysis. Keywords: reliability, availability, maintainability, Markov model, LHD

Jan 1, 2004

By O. Gunaydin

Performance measurements of large-diameter circular saws were conducted on eight different carbonate rocks in marble factories located in some areas of Turkey. Rock samples were collected from these factories for laboratory tests. Uniaxial compressive strength, tensile strength and impact strength were determined in the laboratory. The brittleness of B3 (the ratio of compressive strength minus tensile strength to compressive strength plus tensile strength), the brittleness of B5 (the product of percentage fines in the impact strength test and compressive strength) and the brittleness of B8 (half of the product of compressive strength and tensile strength) were calculated from the test results. Hourly slab productions were correlated with brittleness indexes. It was concluded that sawability of carbonate rocks can best be predicted from the brittleness of B8.

Jan 1, 2004

Cokriging uses a sparsely sampled, but accurate and precise primary dataset, together with a more abundant secondary data-set, for example grades in a polymetallic orebody, containing both error and bias, to provide improved results compared to estimation with the primary data alone, as well as filtering the error and mitigating the effects of conditional bias. The method described here may also be applied in polymetallic orebodies and in other cases where the primary and secondary data could be collocated, and one of the data-sets need not be biased, unreliable, etc. An artificially created reference data-set of 512 lognormally distributed precious metal grades sampled at 25×25 m intervals constitutes the primary data-set. A secondary data-set on a 10×10 m grid comprising 3200 samples drawn from the reference data-set includes 30 per cent error and 1.5 multiplicative bias on each measurement. The primary and secondary non-collocated data-sets are statistically described and compared to the reference data-set. Variograms based on the primary data-set are modelled and used in the kriging of 10×10 m blocks using the 25×25 m and 50×50 m data grids for comparison against the results of the cokriged estimation. A linear model of coregionalization (LMC) is established using the primary and secondary data-sets and cokriging using both data-sets is shown to be a significant improvement over kriging with the primary data-set alone. The effects of the error and bias are filtered and removed during the cokriging estimation procedure. Thus cokriging using the more abundant secondary data, even though it contains error and bias, significantly improves the estimation of recoverable reserves.

Jan 1, 2014

By M. Sephton

Slat-band chains, currently manufactured from Type 430 ferritic stainless steel, are used as conveyors in various industries. A process to strengthen these chains?with the aim of prolonging the lifetime of the conveyors?was developed recently. The process entails heat treating the cold-worked chain at 475°C,strengthening the material by precipitation of the Cr-rich phase a? at relatively long periods of aging. In the present work, it was found that increasing the interstitial content by solution heat treatments (at 880°C or 930°C) prior to cold rolling and aging, causes an increase in strength at shorter aging times as a result of the precipitation of chromium-rich carbides and nitrides. The solution treatments can introduce martensite into the microstructure if carried out at a sufficiently high temperature. This, along with the deformation caused by cold work, also increases the strength. Corrosion resistance is not affected by the treatments, but ductility is lowered. However, calculated critical crack lengths indicate that solution treatment at a temperature below the Ac1allows for a larger critical flaw size, and that the lifetime of the chains will probably be determined by fatigue. Although the duration of the service of the chains are reportedly controlled by wear, with these treatments the tensile strength of the material is increased to within acceptable limits for conveyor chains. The tensile strength is an indication of the wear or abrasion resistance of a material. It is expected that after the treatments, the wear resistance will be improved, but since embrittlement occurs, the fatigue resistance is lowered. It is concluded that the preferred processing route for the chains would be solution treatment at 880°C, fast quenching to trap the interstitial atoms, cold rolling and then aging at 475°C for 8 minutes.

Jan 1, 1997

By S. M. Bradshaw

The principles of microwave heating are discussed with reference to dielectric properties, heating phenomena and microwave equipment. Microwave regeneration of granular activated carbon for the carbon-in-pulp process is examined on a laboratory scale, with special attention being given to highlight the problem areas and specific considerations related to microwave heating. Results indicate that microwave regeneration of carbon with 40% moisture on a wet basis by heating to 650°C with steam addition regenerates the carbon to virgin carbon activity levels but with a higher abrasion resistance. A preliminary economic assessment showed that the capital cost for 120 kg/h microwave unit would be R540 000 with an annual operating cost of R 320/t carbon. These figures yield a return on investment of 12%. The aim of this paper is to provide an introduction to microwave heating and to illustrate its application to the microwave regeneration of granular activated carbon for the carbon-in-pulp (CIP) process.

Jan 1, 1998

By R. Weideman, M. Le Roux, F. B. Waanders, Q. P. Campbell, E. Fosso-Kankeu, D. Moyakhe

"*Paper written on project work carried out in partial fulfilment of B.Eng (Chemical Engineering) degreeSynopsisSpent coffee grounds were transformed into biochar using a hydrothermal method. Some of the biochar product was pre-treated through surfactant impregnation with sodium dodecyl sulphate (SDS) to enhance its adsorption capacity. The non-treated(NT) and pre-treated(PT) biochars were characterized using FTIR spectroscopy and SEM-EDS analyses, which revealed that the products had the potential for adsorption of heavy metals from solution and confirmed the successful impregnation of biochar with SDS surfactant. The two adsorbents were then used for the removal of cadmium from solution and the adsorption behavior and capacity determined through adsorption isotherm, kinetic, and thermodynamic studies. It was found that the cadmium was adsorbed in several concentric layers on the surface of the adsorbents through a chemisorption mechanism. The PT biochar was identified as a superior adsorbent, with a capacity of qe = 10.67 mg/g compared to the NT biochar with qe = 4.82 mg/g. The adsorption of cadmium onto the PT biochar was further determined to be spontaneous and endothermic. It was therefore concluded that the PT biochar shows potential as an adsorbent and could be considered for implementation in the treatment of metal-polluted effluents. IntroductionCoal mining operations are notorious for producing large amounts of waste tailings, which are disposed of in the form of a slurry on tailings dams. This inadvertently contributes towards environmental problems (Jin, Mansour, and Thomas, 2017). Heavy metals are one of the most common pollutants that originate from solid mine waste disposal facilities, and these can leach into groundwater supplies, contaminating them and rendering the water unsuited for human consumption (Salomons, 1995). Cadmium occurs in conjunction with metalliferous ores and can cause severe damage to agricultural soils and drinking water supplies in the vicinity of mining sites (Dudka et al., 1995). It has a tendency to migrate into the surrounding vegetation, which in turn can cause harm to humans and animals when consumed (Marquez et al., 2018)."

Jul 1, 2019

By G. van den Berg

Anglo Platinum has initiated a project to investigate hydraulic hoisting technology for platinum mines. Hydraulic hoisting systems are categorized as pumping, fluidizing feeder or displacement feeder systems. Positive displacement piston diaphragm pumps are most suitable for pumping systems but they require that the ore be milled prior to pumping. Fluidizing feeders are unsuitable for platinum ore applications due to the large percentage of fines in the ore. The three-chamber pipe displacement feeder has been most widely used for hydraulic hoisting and is the most suitable technology for platinum mines. Eight hydraulic hoisting applications covering pumping and displacement feeder technologies are reviewed. The key factors to be assessed in selecting a hydraulic hoisting system for a platinum mine are discussed. A typical platinum mine configuration will comprise an ore preparation plant (to produce -15mm material through screening or crushing), motive water pump on surface, high pressure water pipeline from surface to underground, ore slurrification plant, three-chamber displacement feeder, and a high pressure slurry pipeline to surface. The water and slurry pipelines are housed in a purpose drilled borehole. A hydraulic hoisting system selection chart is presented. A 150mm diameter system with a 25 MPa pressure rating is required to hoist 60 000 t/m from a depth of 1 200 m. Generic capital and operating costs are presented. A major potential advantage of hydraulic hoisting is that the fines, which contain a high percentage of PGMs, are captured underground and transported directly to the concentrator. Hydraulic hoisting technology is ideally suited to providing supplementary hoisting capacity to existing shafts that have reached the skip hoisting capacity limit. The main advantage for new shafts is the potential to significantly simplify underground rock handling and transportation. All hydraulic hoisting system components are proven. The only risk area is the wear rates of the valves and piping. Current estimates are based on gold ore. The business cases investigated show that the financial viability of the installations are not sensitive to wear rate. Hydraulic hoisting is technically feasible and financially attractive for platinum mines. Keywords: hydraulic hoisting, slurry

Jan 1, 2005

A new system for granting access to mineral rights is proposed in the recently released White Paper, ?A Minerals and Mining Policy for South Africa?. Official policy states that ?Government?s long-term objective is for all mineral rights to vest in the State for the benefit of and on behalf of all the people of South Africa?. In order to achieve this objective, government is presently investigating the feasibility of imposing a financial or tax-related disincentive to holding mineral rights. The paper aims to present the pros and cons and to examine the alternatives which will cause minimal disruption to the minerals industry in the period during which mineral rights are transferred to the State. South Africa is a country whose economic and political history is embedded in the development of its mineral resources and has inherited a system which cannot simply be wished away. Hasty or radical decisions will compound the problem, rather than provide a lasting and widely acceptable solution. Mineral rights ownership and its impact on access to mineral deposits are discussed. Taxation as a possible economic disincentive is also evaluated. Finally, the value of mineral resource related information as a prerequisite to mineral policy decisions and as an alternative to mineral rights taxation is emphasized.

Jan 1, 1999