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Mining executives often have a difficult task determining what the strategic objective of the business should be as this can be impacted by the prevailing market conditions. In addition, they have no mechanism to quantitatively 'test' the impact of this strategic decision on the business and understand the underlying dynamics. During the commodities bull run of 2003 to 2008 the strategic objective may have been to grow the long term value of the business (NPV) through increased tonnage, acquisition and finding new reserves, which all came with an increasing fixed cost base. Now with the financial crisis upon us and the collapse of commodity prices and demand, executives have adjusted their strategies as 'cash is king' and short-term cash flow, in some instances at the expense of long terms value, is the order of the day. For many mining companies, mine closures, reductions in production and cost cutting exercisers are now the focus. In many instances, management do not have an ability to rapidly test different strategic alternatives to 'test' the impact on value, unit costs, reserves and profitability at the operational level and optimize the underlying trade-off variables. Economic modelling of the complete business value chain is a means of linking the operational 'reality' and strategic choices, so that the full impact can be assessed. This paper describes some of the challenges facing mining executives and how economic modelling can be applied to make decision making more rigorous.

Jan 1, 2010

By M. Krasowska, W. Skinner, R. K. Asamoah

Understanding chemical interactions at solid-liquid interfaces have played a pivotal role in improving mineral flotation performance, increasing the rate of mineral crystallisation and profitable leaching of valued minerals and metals. This paper highlights gold leaching with links to surface and interfacial chemical processes occurring, and opportunities to maximise extraction while reducing usage of more recent scarce resources. From the review, there is a significant link between surface and interfacial processes and gold leaching performance. Evidently, gold leaching kinetics could be increased by changing leaching conditions, including manipulating the surface and interfacial interactions. Control of surface and interfaces during gold extraction could enhance rapid, smarter gold extraction and mitigate formation of passivation layers. Keywords: Surface and interfaces, refractory ores and concentrates, gold leaching, reaction mechanism and kinetics

Jan 1, 2020

By D. F. Malan, J. C. Esterhuyse

"Mining in the Carletonville area of the Witwatersrand Basin predates 1934. Owing to the depletion of higher grade ore, the current activities focus increasingly on the extraction of lower grade secondary reefs as well as remnant extraction. Of particular interest is multi-reef remnant extraction. Numerical modelling was conducted to investigate some rock engineering aspects of remnants being understoped on a secondary reef horizon. An analysis of the stress evolution in the middling between two reef horizons indicated that a zone of high major and low minor principal stress develops between the two reefs. This indicates a high risk of violent shear failure. Some pillars were nevertheless successfully understoped in the past and a study was conducted to better understand this phenomenon. An ’extended’ energy release rate concept introduced by Napier and Malan (2014) proved to be useful for investigating this problem. It was found that bedding planes and lithology appears to play a role in the stable dissipation of energy in multi-reef remnant geometries. The study indicated that the stope convergence and the various energy components are affected by the presence, position, and properties of a bedding plane. The energy solutions are complex and sometimes counterintuitive. Care should be exercised when modelling specific cases. The modelling was nevertheless valuable as it indicated that energy dissipated on weak layers may reduce the risk of violent failure in a multi-reef mining scenario. Additional work is required to investigate if crushing on the reef plane plays a prominent role when mining these remnants. IntroductionTo extend the lives of the Witwatersrand gold mines, work is being conducted to include a larger number of remnants and pillars in the reserve base of the mines. According to Jager and Ryder (1999), a remnant is an unmined block of ground surrounded by extensive mining. Remnants are typically left because of adverse or difficult mining conditions caused by geological structures, poor ground conditions, low grade, or rockburst damage (Durrheim, 1997). In contrast, pillars are typically the result of rock engineering designs to control energy release rates (ERR) and seismicity. During the early 1900s, remnants formed by the practice of scattered mining layouts had a significant effect on seismicity. Numerous task teams were appointed during this period. As the industry expanded, the severity of rockbursting increased and the research was formalized after the 1960s. Various recommendations were made and many of these are still used as best practice today (e.g. Jager and Ryder, 1999)."

Dec 1, 2018

By N. C. Joughin

A simplified economic model is derived for the financial return from a new gold mining project. The model is used to analyze the effects of changes in the mining rate, capital costs, working costs, value of the reef and the stoping width. The most effective avenues for improving the return from a new project are indicated. It is shown that those technological innovations which would improve the return significantly, and therefore make it possible to open more mines, are the use of smaller mines, means for improving the mining rate to capital costs ratio for smaller mines, planning and control of mines by computer simulation, an improved mine valuation procedure and means for mining at a decreased stope tramming width.

Jan 1, 2014

By P. J. H. de Graaf, S. D. N. Wessels

"Rio Tinto’s Western Australian expansion, combined with mining within structurally complex geology and increasingly below the water table, presents challenges in effective slope management to ensure safe and economic mining.The Geotechnical Management System (GMS) was developed by Rio Tinto Iron Ore (RTIO) to manage geotechnical risks identified during the design process and implementation, and to ensure feedback based on the ‘as-found’ conditions. The GMS utilizes a risk-based approach to geotechnical risk management and is centred on the geotechnical risk and hazard assessment management system (GRAHAMS). GRAHAMS is used to assess pre- and post-control risk for future potential risks (planned slopes), current risks (as-built slopes), and actual geotechnical hazards (realized risks) identified in the pit. This serves as a core operational risk management tool in identifying and prioritizing key risk sectors and management of critical controls. The system’s database reporting functionality supports effective communication of operational risks to operational personnel, as well as reporting the risk profile across operations to management.A rigorous engagement process between design engineers and sitebased engineers is implemented to ensure that key design assumptions, limitations, risks, and opportunities are understood by the site teams. This information, together with mine plan schedule details, is used to assess the design risk and develop appropriate controls. These controls typically include slope performance monitoring and slope reconciliation. The design feedback loop is closed through sharing of key slope performance and reconciliation data with the design teams.The GMS has been successfully implemented in RTIO pits and is fundamental to successful geotechnical slope management. Improved characterization of design assumptions has allowed for re-assessment of the pit design and improved hazard management in high-risk pits. The GMS, GRAHAMS, and other processes reduce the incidence of unexpected slope instability. Improved understanding of rock mass conditions has allowed for economic optimization through redesign of slopes, allowing for an improved understanding of risk and fewer unexpected conditions (surprises), hence an increased realized value."

Jan 1, 2016