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By C. Nangolo

Mineral commodity prices comprise one of the key criteria in the selection of mining stocks. We contend that of the three principal elements of mineral commodity prices, spot price, forward price and long-term price, one has a greater impact on the share valuation processes used by investors. This research paper examines the extent to which each of these elements influences the valuation process. The intention is to provide investors in mining stocks with a greater understanding of how fluctuations of commodity prices over time affect the prices of the mining stocks they hold, or intend to sell or buy. Three mineral commodities, gold, silver, and copper, were used as case studies, since market data on these commodities is readily available in the public domain. Nine market indices covering all three mineral commodities were selected. These are based on clearly defined criteria with the intention of eliminating ambiguity and to test for correlation with the three sets of mineral commodity prices. Nine mining companies, which were not the primary drivers of the relevant indices employed in the study, were used to validate the results obtained from the indices in order to avoid duplication of the same correlation during cross-checking. Each commodity price was adjusted for operating costs. For each market index, an average operating cost was calculated from the companies comprising its basket, while each company?s annual operating costs were used for the stocks of the individual companies examined. The data was collected for the period January 2004 to October 2010. This period was further split up into three sub-periods to account for the Global Financial Crisis (GFC) period that started in mid-2008. We conclude that mining stock prices are correlated with mineral commodity prices, but with spot and forward prices exhibiting stronger correlations than long-term price. This finding should be useful for evaluation purposes. Where cash flow methodologies such as discounted cash flow or earnings per share are used to value ordinary shares and commodity prices are required to estimate future cash flows, the findings suggest that spot prices should be used as opposed to long-term prices. The work reported in this paper is part of a current MSc research study at the University of the Witwatersrand.

Jan 1, 2011

By A. Karadogan

Decision making can be defined as the selection process of the best routes from the alternatives in order to achieve a goal, and mostly involves uncertainty. Additionally, mostly qualitative variables (weak rock, massive ore deposit, etc.) are in question. Mine planning engineers often use their intuition and experience indecision making. As fuzzy set theory has been used since 1970, these uncertainties are easily evaluated in the decision-making process. Real world study is decision making under vague constraints of different importance, involving uncertain data (qualitative variables), where compromises between antagonistic criteria are allowed. This paper presents a new approach in the selection of an underground mining method based on fuzzy set theory for the Ciftalan Lignite Site located close to Istanbul in Turkey. The physical parameters such as geology and the geotechnical properties of ore, hanging and foot wall, economic effects, environmental effects, are established with field and laboratory tests together with the determination of other qualitative variables. Meanwhile, some qualitative variables dealing with the matter was described according to the view of a number of experts. Then fuzzy set theory is applied to these parameters, considering the available underground methods in order to choose the proper method. At the end of the evaluations, the room and pillar method with filling was determined as the most suitable method for the test site. Keywords: Decision making, fuzzy set theory, underground, mining, method selection

Jan 1, 2008

By K. H. Berget, V. Andersen, H. Tveit, R. Jensen

This paper presents some of the work carried out in order to improve the tapping process in silicon production, with special focus on the environmental and the safety standards. Some of the modelling work that has been done to improve the understanding of the process is described, together with the resulting implementation to improve tapping standards.

Jan 1, 2014

By D. J. Stanton

The objective of this study was to develop, install, and test a small underground mobile refrigeration plant (MRP) to deal with some of the real problems associated with mine cooling in an operating mine. The requirement for cooling the underground environment is discussed with particular emphasis on the need for this method of cooling, with the concomitant benefits. The research investigated current methods of cooling and reasons for previous failures in MRP. Both static and dynamic simulations were conducted to increase the confidence level under operating conditions. Implementation and testing, resulted in ?lessons learnt? requiring modifications, which are documented. Actual results have been recorded. These results have proved that significant cooling via MRP is feasible. Main benefits include positional efficiency, cost per kilowatt of cooling and cooling opportunities for remote hot areas of a mine. Finally, a proven technology is now available for large-scale implementation in the mining industry. Now the ventilation engineer has another system of cooling, which can be utilized in the quest to create an occupational environment, which meets the physical and mental health requirements of the worker.

Jan 1, 2004

Geologists in some underground gold mines collect grab samples from broken ore piles or trucks as a method of grade control. It is often known as muck sampling. Generally, the goal of grab sampling is to try and reconcile the mined grade at the ore source to the predicted grade and/or predict the mill feed grade. The mass of the sample collected is limited by health and safety issues, as well as the capacity of the laboratory to process the samples within a given timeframe. In general terms, grab sampling is known to be problematic because samplers tend to over sample the fines, and/or pick out high-grade fragments; surface sampling of piles does not test material within the pile; muck piles in development drives/faces are likely to be zoned due to the blasting sequence; high or low-grade material may preferentially segregate in the pile during mucking; the five percent mass reject size of the material in muck piles is very large from underground blasting; some correlation usually exists whereby the larger fragments are enriched or depleted in the critical component of value; and the average error made in estimating the true stockpile grade is likely to be high. The method is prone to chronic fundamental sampling, grouping and segregation, delimitation, and extraction errors. Substantial warnings must be given with respect to the use of grab sampling for grade control in gold mines. The method may appear to work sometimes, which can be attributed to a fine gold particle sizing and more disseminated distribution. As with all sampling methods, its appropriateness must be determined by ore characterization and heterogeneity testing to ensure the method suits the ore type.

Jan 1, 2009

By Alexandra Amiel

Tarkwa Gold Mine is owned by Gold Fields Ghana, IAMGOLD and the Government of the Republic of Ghana in a 71%, 19% and 10% ratio. The mine is operated by Gold Fields Ghana. This large, low-grade, open pit, gold mining operation is located in Tarkwa, in the Western Region of Ghana, approximately 320 kilometres by road, west of Accra, the capital of Ghana, West Africa. In the Financial year ended June 2007, the operation mined a total of 108 million tonnes of which 22 million tonnes was ore. The mined ore is processed through three gyratory crushers supplying two heap leach pads (North and South) and a carbon-in-leach (CIL) plant. Before the 6 Sigma project commenced, the current fragmentation was resulting in sub-optimal feed size to these crushers. It was decided to use 6 Sigma methodology to improve the fragmentation. A defect was defined as a fragmentation analysis indicating less than 95% passing 750 mm. The objective was to improve fragmentation in order to achieve a constant throughput to the north heap leach crusher of 1500 t/hr, a 5% increase in pit loading efficiency and a 50% decrease in rock breaker hours, equipment damage costs and in-pit sheeting costs respectively. However, this was not to be achieved at the expense of grade control as Tarkwa is exploiting a low grade, high volume deposit and therefore ore dilution must be kept to a minimum. This paper is intended to take the reader through the various 6 Sigma phases of the project (Define ? Measure ? Analyse ? Improve ? Control) which have resulted in a 10% reduction in loading times, of which half has been attributed to improved fragmentation, as well as a substantial increase in blasted stocks. The focus has been on both drilling and blasting parameters as both processes had to be taken into account. These parameters are technical but personnel factors were also identified and dealt with as they arose. In order to measure the impact of any change in the process parameters on the fragmentation size distribution, cameras have been acquired. One has been installed looking into the bowl of the north crusher and the other one was dedicated to field observation, of individual blasts. Both are used for on-going fragmentation analysis. At Tarkwa, mining efficiency is strongly dependent on good fragmentation as well as the presence of un-blasted ?toes? on the pit floors. Crusher throughput depends on an acceptable ore fragment size. Compliance to plan with regards to actual hole depths was temporarily monitored by manual hole dipping, but, this is now being replaced with a fully automated Drill Data Management system developed by Sandvik and Modular Mining. The Six Sigma methodologies, using control charts based on data collected in the field, allowed the mine to improve methods with regards to the control of blasted material. It also enforced the implementation of a quality control programme encompassing the entire Drill and Blast process.

Jan 1, 2008

By P. Gauvillé

The key driver for choosing a circulating fluidized bed (CFB) boiler is the ability to burn a wide range of fuels with highly efficient combustion while meeting low emission requirements. Reduced sorbent and water consumption compared with pulverized coal (PC) plants and the ability to deal with corrosive fuel constituents while still meeting local regulations make a CFB boiler-based power plant particularly attractive. CFB-based power generation is particularly relevant in coal mining areas. During mining, a portion of the roof and floor material may be extracted along with the coal seam in order to create adequate working height for the equipment and miners. Therefore, run-of-mine coal which comes directly from the mine contains impurities. The raw coal can undergo a washing or screening process in order to improve its quality by reducing the ash content in the fuel in order to sell it on the export market or to comply with domestic customer requirements. The coal discarded from the washing process usually has a high ash content and difficult mechanical properties resulting from the initial properties, the mining, and the coal cleaning processes. It can contain a large volume of stones or can be very fine as a result of the washing treatment. To create value from burning this discarded coal, the boiler supplier has to meet several technical challenges in developing the appropriate design. This paper highlights the performance achieved with Alstom's CFB boilers developed for power generation over the last two decades to extract value from discarded coals. Emile Huchet Power Plant is the first 125 MWe CFB unit developed for burning coal slurries (called schlamms in France). The Emile Huchet discarded coal fuel is a very fine high-ash residue with an average particle diameter by mass (d50) of around 80 µm as received from the washing plant. The paper describes the performances and the basic design of the CFB boiler to manage such a fine fuel. The performances of two other CFBs of approximately 300 MWe output in operation in the USA and PR China are also mentioned to demonstrate the capability of this technology to burn either low-volatile bituminous or anthracite waste coals. The significant issues experienced during commissioning are reported, and the conceptual choices for burning such fuels are mentioned.

Jan 1, 2012

By K. A. Annan

The last seven hot rolling passes of the ferritic stainless steel AISI430 were simulated on a Gleeble-1500D® thermo-mechanical simulator to investigate the effect of temperature, strain rate, and interpass time on the texture. The compression tests were carried out over a wide range of strain rates (0.1 s-1 to 5 s-1) and temperatures (1100°C to 820°C) with different interpass times (2, 10, 20, and 30 seconds). The dynamic recrystallization to dynamic recovery transition temperature was determined from examining the relationship between the mean flow stress and the inverse of the deformation temperature in multi-pass tests. It was found that the texture in the central layer of the compressed sample is a strong recrystallization-type. The through-thickness textural and microstructural banding, to a large extent, were found to be weakened by hot deformation in the two-phase (a+ ?) region, as opposed to the single-phase (a) region.

Jan 1, 2013

By V. Matou?ek

The paper addresses pipe flows of aqueous medium-sand slurries at velocities lower than the deposition-limit velocity. Laboratory test results including measurements of particle concentration distributions are used in order to describe a flow with a (pseudo-) linear concentration gradient above a stationary bed. Particle dispersion within the flow is evaluated and a stratification-ratio equation is formulated, estimating a portion of contact load in the flow. The formula is incorporated in the proposed predictive model for the hydraulic gradient for a medium-sand flow above a stationary bed.

Jan 1, 2007

By P. Jordan

The practice of ilmenite smelting in electric arc furnaces has been researched and published over the last few decades. An issue that has not been addressed is the understanding of the properties of ilmenite smelting reductants, and linking these properties to the subsequent smelting behaviour in the furnace. The reduction mechanism of ilmenite smelting is not fully understood, but it is believed that the Boudouard reaction plays a role. This paper investigates the behaviour of a number of reductants when reacted with CO2 at different temperatures. Keywords Boudouard reaction, carbon reactivity, reductants, ilmenite smelting.

Jan 1, 2011

By J. Kempken, T. Schreiter, R. Degel, H. Schmieden

After a short summary of the historical milestones of the submerged arc furnace, the paper will highlight different applications and their specific smelting furnace requirements in the non-ferrous area. Additionally, aspects of rectangular furnace design and the features of the copper cooling system for the side wall will be emphasized. Finally a state-of-the-art design tool as well as a new invention to improve slag cleaning technology will be featured, which shows great potentials especially for the PGM and copper related industry. Keywords: submerged arc furnaces, aerro alloys, non-ferrous, copper, slag cleaning, PGM, rectangular furnace, DC technology

Jan 1, 2006

By André Fouché

GFWW Bulk Sample Prep Plant INDEX ?Features ?Flow Diagram ?Pictures of Plant

Jan 1, 2005

By B. Steyn

AngloGold Ashanti?s Obuasi Mine, in Ashanti Province, Ghana, operates a plant utilizing bacterial oxidation technology. The mineralization consists predominately of arsenopyrite with gold associated in the sulphides. The plant was commissioned in 1994, at that time was the largest BIOX® plant in the world, and has been operated by AngloGold Ashanti since 2004. The constraints identified in the plantwere the flotation capacity, BIOX® feed size and disruptions to the BIOX® process. This paper focuses on the practical steps that were followed in order to increase the recovery of the plant. The original plant design was based on a head grade of 10 g/t and an overall recovery of 86.5%. In 2007 the plant was operating at an overall recovery of 79.2% at a head grade of 5.6 g/t and this has improved to 80.6% at a head grade of 5.8 g/t during the last quarter of 2008. Additional improvement to 81.5% are expected by the end of April 2009. Improvements that have been implemented include: ?Replacement of the regrind mill ?Installation of additional float capacity ?Installation of a scavenging circuit ?Installation of a complete water treatment plant. In addition we have focused on the effect of the water circuit on the BIOX® process and the steps involved in correcting this problem. The water circuit was originally designed as an open circuit and through environmental considerations the circuit was closed towards the end of 2007. The bacteria in the BIOX® are particularly sensitive to cyanide and cannot tolerate levels above 0.05ppm (free cyanide), this required extensive modifications to the water circuit. The plant improvement project is ongoing and the current scope of work should be complete by the end of April 2009. Further research and development work is being planned, which includes a ?white rot bacteria? that can consume the preg-robbing carbon and oxidize the sulphide in a single pass.

Jan 1, 2009

By S. C. Essack

"Tenova Pyromet has designed a slag flow control valve that throttles the flow of slag in order to control the tapping rate. In addition, the valve has proved to be a reliable tool for closing the furnace during normal operation as well as emergency conditions. The valve makes use of a water-cooled copper element that is hydraulically operated and attached directly to the slag tap-hole. The equipment is compact, simple to maintain, and cost-effective to purchase and install. It can be retrofitted to most existing slag tapholes with minimal modifications.During the development phase, finite element method (FEM) and computational fluid dynamics (CFD) software was extensively used to model predicted operating conditions and to optimize the design. By using CFD, it was possible to understand the flow patterns inside the copper and to optimize these to improve overall performance.The slag valve was installed and commissioned in 2011/2012 on a 12 MW furnace as part of a new mineral wool plant in the USA. It has performed well since its installation despite operating under conditions in excess of the original design criteria. During the first 6 months of operation it quickly became the preferred method of closing the furnace, although the design intent was for occasional use during emergency shutdown conditions only. Since replacing the mudgun as the main method of closing the tap-hole, a few minor changes have been made to the installation in order to cope with the increased heat load and much higher frequency of use."

Jan 1, 2014

By P. Lloyd

Perceptions of disaster caused by burning fossil fuels have reached such a pitch that they seriously threaten the very future of the industry. Coal is a dirty word. A leader in Business Day(January 192009) claimed ?There is no disputing that renewable and non-polluting energy sources are preferable to the country?the true cost of so-called cheap coal-fired power stations is neither reflected nor accounted for by Eskom?the true and immediate but unacknowledged cost of continued coal mining is apparent in the catastrophic level of acidification from mining runoff of all significant natural water resources in the country?and their waters have been rendered unfit for human consumption. Air quality is in a similar state with?increases in pulmonary disease causing workforce absenteeism and compromised childhood development, among many other health problems recorded in areas polluted by coal mining.? The upshot is that our latest coal-fired power station, Kusile, is being required to use flue gas desulphurization. The costs are considerable, and the benefits minimal. Meanwhile, exports are being threatened by EU directives and an assumption that South African coal gives off excessive quantities of SOx and NOx when burned. The industry needs to arm itself with clear responses to these and similar misconceptions, and to communicate those responses loudly and clearly, if it is to survive.

Jan 1, 2011

By FJ Fourie

Lack of success in attempts to develop viable large-scale continuous mining techniques (previously reported by MP o?Hare in 2004) led the team at Kopanang to explore alternative solutions to their ongoing need for improved profitability. By calling into question the basic assumptions around the stoping of narrow tabular deposits of gold, fragmentation and more particularly, the range of sizes of blasted rocks eventually became the focus of serious study. This background is briefly covered before the sequence of the investigations is described. So far, some of the ?rules of thumb? derived over the years have been confirmed, albeit for totally different reasons than those from which they arose; some persistent theories on gold loss have been debunked, and some new ones have been developed. Blast optimisation (the means by which desired fragmentation is achieved) has been based on tailoring energy to rock characteristics in an innovative packaging design for explosive charges. Other beneficial consequences arising from the work include increased production volume and gold output, a decrease in milling consumables, and the Mine Call Factor is being maintained at a level previously thought to be unachievable. This is very much a ?work in progress?, and it is empirical in its approach. The authors are the first to recognise that they have yet to determine in absolute measures why some of the innovations have had the effect that has been observed. Also that there other factors which may contribute to the result, but which have not yet been examined. Nevertheless, publication of the work completed so far is felt to be justified; firstly on the basis of the achievements themselves, and secondly for the benefit of others in the industry for whom similar problems exist. Statistical reports of the effects on the business are included at the end of the report. Detailed laboratory test results have been separated into an appendix, leaving salient graph and tabulated data in the main text. For ease of reading, units of measurement for particle sizes below 1mm are described in microns, but millimetres have been retained for those at that size or greater.

Jan 1, 2007

By Keith Rowley, Neal Harries, David Noon

The management of risks associated with slope instability is an essential process in the safe and economic operation of open cut mines. The ?slope stability radar? (SSR) has been developed to better manage those risks. The SSR remotely scans rock slopes to continuously measure any surface movement and can be used to detect and alert users of wall movements with sub-millimetre precision. The high level of movement precision and broad area coverage of the rock face can allow for a better understanding of the geomechanics of slope deformation, including magnitude of potential failures and additional warning time of impending instability. Additionally, radar waves adequately penetrate through rain, dust and smoke to give reliable measurements, 24 hours a day. SSR systems have been deployed in many mines in Australia, Indonesia, South Africa, Zambia, Chile and the United States. Greater than 70 rock falls and waste dump failures (from several to millions of tonnes) have been monitored, and on every occasion precursor ?warning? movements were recorded by the SSR. This technology enables a radical change in the management of risks in open cut mining. This paper will present recent case studies of the SSR operation in coal and metalliferous mines.

Jan 1, 2006

By S. V. Rungan

The modern mining industry is increasingly being tasked to comply with various legal, industry and social prerequisites. In addition to complying with these, the mining industry is further expected to effectively report on their compliance. Although there are many models that aid the mining industry in compliance and reporting, it is perhaps opportune for a new model to be introduced. The Compliance Spindle is postulated as a new and alternative model which is easy to understand and has the possibility of implementation in South Africa and other jurisdictions as well. The Compliance Spindle is also an effective tool to educate future compliance officers. The new model provides for all aspects of compliance and reporting and can be easily modified to take account of new developments in the mining compliance and reporting arena.

Jan 1, 2010

By J. Danoczi

South Africa is running out of fresh water and is looking at ways to improve water usage. This report addresses how a diamond mine in Gauteng has improved the utilization of its water resources. In the past, water from the local river was deemed the most suitable to use in the grease recovery plant but subsequent tests on the water from the slimes dam have shows that this water source is in fact more suitable for diamond recovery. Utilizing the slimes dam water provides a more stable water source than the local river while also reducing the impact of the mine on the water resources in the area.

Jan 1, 2008

By A. S. Macfarlane

Western Deep Levels (North) is a deeplevel, longwall gold mine. Severe strata control problems and high rates of elastic closure, resulting in high rates of energy release, are associated with mining at depths of up to 3 500 metres. To assist in controlling these aspects of mine design and safety, a waste backfilling system has been designed and commissioned. The integration of such a system into an existing, producing longwall brings many problems of logistics, organization, planning and control. It is the purpose of this paper to examine these aspects of fill management, and to describe some of the practical problems involved with the integration of this project into the mining environment. Although many of the rock mechanics and soil mechanics aspects of backfilling systems are common there are specific problems involved which apply to longwall systems. Very strict guidelines are required for planning personnel to design their backfilling systems for a particular situation. These aspects are examined, and basic models developed which can be used without the necessity of comprehensive input from rock mechanics. A summary of the financial implications is included, and these are examined with regard to possible future applications and expansion of waste filling.

Jan 1, 1988