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By E. V. Lilford

Valuators of mineral properties are faced with a range of valuation methodologies, the most important of which are grouped under the headings of the market approach, the cost approach and the income approach. The way in which value is defined and the detail of the different valuation methodologies is examined here. This paper aims at documenting the variety of valuation procedures and applying each method to a variety of gold projects and comparing the outcomes. Any decision to apply a valuation technique will depend principally on the stage to which the project has been developed. The valuation approach to a greenfield project will be substantially different from that applied to a well-drilled, extensively explored mineral property. Furthermore, a valuation exercise may produce different outcomes for the same gold project depending on which method is applied. In order to investigate the variability in valuation methods and to explore the outcomes of different approaches, a series of five gold projects was analysed. The projects differ in regard to levels of capital application, infrastructural setting, depth below surface, in situ grade, and the stage of development, and were valued using the different methods. The most critical aspect of any valuation is the capacity of the valuer to identify the salient issues and ensure that they are incorporated into the valuation. The danger of simply applying ?black box? solutions to valuation problems without a full understanding of the parameters and the areas of uncertainty is emphasized. The importance of the valuator?s experience, insights into best practice and the ability to recognize and submit to the requirements of compliance within the minerals industry is among the most important characteristics of a valuer.

Jan 1, 2005

Many industries base their decisions on the assaying of tiny analytical sub-samples. The problem is that most of the time several sampling and sub-sampling stages are required before the laboratory provides its ultimate assays using advanced chemical and physical methods of analysis. As long as each sampling and sub-sampling stage is the object of due diligence using the theory of sampling it is likely that the integrity of the sought after information has not been altered and the generated database is still capable to fulfil its informative mission. Unfortunately, more often than not, unawareness of the basic properties of heterogeneous materials combined with the unawareness of stringent requirements listed in the theory of sampling, lead to the conclusion that massive discrepancies may be observed between the expensive outcome of along chain of sampling and analytical custody, and reality. There are no areas that are more vulnerable to such misfortune than sampling and assaying for trace amounts of constituents of interest in the environment, in high purity materials, in precious metals exploration, food chain, chemicals, and pharmaceutical products. Without the preventive suggestions of the theory of sampling serious difficulties may arise when making Gaussian approximations or even lognormal manipulations in the subsequent interpretations. A complementary understanding of Poisson processes injected in the theory of sampling may greatly help the practitioner understand structural sampling problems and prevent unfortunate mistakes from being repeated over and over until a crisis is reached. This paper presents an overview of the theoretical, practical and economic difficulties often vastly underestimated in the search for quantifying trace amounts of valuable or unwelcome components.

Jan 1, 2010

By S. J. Oosthuizen

This paper examines innovation in relation to the availability of anew material: the metal titanium. The paper aims to highlight the need for the inclusion of entrepreneurial innovation as a necessary focus area in the development of a titanium metal value chain. Both the Department of Science and Technology (DST) and the Department of Mineral Resources (DMR) have identified the creation of titanium metals production capabilities as a key growth area for South Africa. Using historical literature as a source of data, the activities of selected innovators who used titanium metal as a central component in their success, were investigated. The origin of the process innovation behind the titanium metals industry, and two titanium product innovations: namely, medical implants and sporting goods, were detailed as case studies. It was found that individual innovators were responsible for the creation, and rapid growth, of the titanium industry and titanium product applications. There is a need to link the current research and development into titanium metals production with individuals and organizations capable of commercializing innovative processes and products.

Jan 1, 2011

By J. H. Zietsman, M. W. Erwee, P. J. A. Bezuidenhout, Q. G. Reynolds

"Pyrometallurgical furnaces are tapped through tap-holes that are opened with drills and oxygen lances. The lance is often used on its own or as the last step of opening the tap-hole. Interaction of oxygen with molten material inside the tap-hole can occur, and is a phenomenon that is not well understood. As part of a study that focuses on the effect of lancing on flow inside and around the furnace tap-hole, a cold-model validation was done. The validation study focuses on validating the MULTIPHASEINTERFOAM multiphase flow solver in OpenFOAM® for the problem involved. The sensitivity of the model to different materials properties (viscosity and density in particular) is presented with both cold models and the results from flow simulations in OpenFOAM®. IntroductionMany pyrometallurgical operations are carried out in furnaces where molten material accumulates continuously. Once enough material has accumulated and is ready to be removed from the furnace, material is tapped through one or more tap-holes in the furnace. Tap-holes differ significantly in both geometry and materials of construction, depending on the process involved – examples of different types of tap-hole configurations can be found in, for example, Nelson and Hundermark (2014). Tapholes all share one common feature: they are high, wear areas of the furnace. Molten material at high temperature flows through these areas, after which the tap-hole is sealed, usually using tap-hole clay. The purpose of the tap-hole clay is to harden inside the tap-hole and seal it until the next tap.Once ready to tap, a pneumatic drill and/or oxygen lance is used to open the tap-hole. The extent of lancing a furnace tap-hole depends strongly on the type of furnace. In, for example, many blast furnace operations lancing is limited as much as possible, and done only if drilling was not effective. In other operations, such as on small-scale pilot furnaces with short tap-holes, only lancing is used to open the tap-hole."

Jun 1, 2019

By B. Elevli

The aim of this paper is to demonstrate the implementation of multicriteria analysis in selection of the most suitable underground ore transport system for a chromite mine in Turkey. The related problem includes five possible ore transport systems and six criteria to evaluate them. The adopted evaluation and ranking method for this study is PROMETHEE. PROMETHEE I revealed a partial order of alternatives where incomparability exists. PROMETHEE II gave the absolute ordering of alternatives. The results have shown that the PROMETHEE method can be successfully used in solving mining engineering problems. Keywords: multi-objective, decision analysis, mining, ore transport system

Jan 1, 2004

Virtual Reality (VR) simulations are excellent tools for training, education, simulation of abnormal and dangerous conditions in mines and solving complex problems. Although the concept of VR has been around for nearly half a century, it has taken recent advances in hardware and software to bring this technology to within the budgetary reach of ordinary users and researchers. VR is now successfully being used in the minerals industry for: data visualization, accident reconstructions, simulation applications, risk analysis, hazard awareness and training. The Institute of Sustainable Minerals Industry, Advanced Computer Graphics and Virtual Reality Research Group (SMI-VR) at the University of Queensland, established in late 2000, has been involved in developing VR applications for the minerals industry in conjunction with various research centres. This paper illustrates the benefits of using advanced computer graphics and VR techniques in the minerals industry with some examples of applications developed.

Jan 1, 2003

By J. A. L. Napier

This paper presents an overview of work carried out by the CSIR Division of Mining Technology and formerly by the Chamber of Mines Research Organization (COMRO) to quantify the behaviour of the stope fracture zone near deep level goldmine stopes. The motivation for this work is first reviewed in the context of the unsatisfactory status of current mine layout design criteria. Numerical methods to represent failure processes are reviewed briefly. Specific studies of microfracture processes are described as well as physical modelling experiments that can yield insights into deformation mechanisms. Modelling of stope scale deformation mechanisms are presented and considerations relating to elastodynamic modelling of the rock mass are described. The implications of this understanding in relation to prospects for active fracture zone ?engineering? are outlined and finally, the directions of future research work are proposed.

Jan 1, 1997

By C. Musingwini

The subject of optimal planning of level and raise spacing for inclined narrow reef deposits has received intermittent attention over the years because the subject matter is inherently complex. Previous work has approached the problem as simply that of simultaneously minimizing the total excavation and haulage cost associated with the development workings. However, when level and raise spacing are altered, other factors such as productivity are negatively affected, thus requiring a delicate trade-off of contradicting planning or optimization criteria. The paper concludes that the problem is actually of the multi-criteria decision analysis (MCDA) type, contrary to traditional thinking that the planning problem is achieved solely by minimizing waste development.

Jan 1, 2010

By G. Swan, E. Nordlund, P. Zhang

"SynopsisThe most widely used support design damage criterion for rockburst-prone mines is based upon kinetic energy, which is proportional to the square of the ejection velocity and is commonly expressed in terms of peak particle velocity (PPV). Field monitoring and back-analyses have shown that ejection velocities of the order of 10 m/s and higher can result from seismic events of moderate magnitude. Such velocities are much higher than those predicted using PPV obtained from scaling laws. It has also been found that the peak ground motion (i.e. PPV) on the surface of an excavation is preferentially amplified (by four- to tenfold) compared to the motion in solid rock at a similar distance from the source. However, the wave propagation and interaction processes involved within the fractured rock in generating high ground motion are very complex and are not well understood at this time.In this paper, velocity amplification was investigated by modelling the dynamic interaction between fractured rock and a free surface using a 2D discontinuum-based numerical program, UDEC (Universal Distinct Element Code). A 1D model with a fractured zone was used to represent the fractured rock. Velocity amplification, quantified by PPV, predicted at the free end of the model was 2.0–3.6 times higher than the input velocity. It was found that the wave frequency, fracture stiffness, fracture spacing, and thickness of fractured zone are the main factors that affect the velocity amplification. The results have proved that the interaction of the seismic wave and multiple fractures near the free surface strongly influences the ground motion.IntroductionSince mining-induced seismicity is almost inevitable in deep mines, ground support is generally employed to mitigate the risk of seismically-induced damage. The most widely used support design criterion for seismicallyprone mines is one that seeks to maximize the absorption of the kinetic energy (plus potential energy if a gravity component is considered) of key rock blocks. Based on this criterion, design methods for rock support were first proposed by Wagner (1984) in South Africa and later improved, among others, by Roberts and Brummer (1988) and Kaiser et al. (1996)."

Jan 1, 2015

By D. M. Walters

To achieve safe and healthy working conditions in shaft sinking operations, ventilation, and where necessary cooling, must be provided. These requirements are considered for sinking vertical, sub-vertical and decline shafts. Regulatory requirements, determining air volumes and amount of cooling required, the various ventilation methods used such as force, exhaust, twin columns, air reversal using four gate systems and the equipment required to achieve this, are discussed. Consideration is also given to the sinking of single and twin declines using diesel equipment, calculating the air volumes required to dilute pollutants and the various methods for achieving this. Also discussed is the importance of having early ventilation design input to the overall design of the mine. In many cases ventilation can be the prime determinant for the size and configuration of the shafts or declines that have to be sunk.

Jan 1, 2009

By M. L. Smith, G. Karunatillake

Lead-zinc production at MIM, Mount Isa includes three mines, a lead concentrator, zinc filter plant and lead refinery. Lead production is vertically integrated with lead-silver bullion shipped from Australia to London for refining. Zinc is sold as a concentrate. All three mines have reached varying states of maturity mining a multitude of orebodies having significant variation in grades and metallurgical recovery for three metals. Based on current levels of measured resources, the remaining project life is at least ten years. The objective is to schedule production over the life of all three mines so as to maximize the present value of the complex. Additional scheduling complexity arises out of the implementation of long-term schedules, capital expansion projects for both mining and processing, the presence of substantial inferred reserves and interactions with MIM copper production. A large-scale, time-dynamic, life-of-complex Mixed Integer Program (MIP) production schedule was formulated to optimize lead/zinc cash flow based on a detailed life of project production scheduling study. The requirements for such a study are detailed herein. The operational feasibility of the MIP solution is compared against a non-optimal approach to strategic life-of-mine scheduling. The strategic planning emphasis placed on the MIP is compared to the implementation of a life-of-mine schedules at Mount Isa using spreadsheets and other popular commercial mine schedulers.

Jan 1, 2003

By W. H. Holtzhausen

The purpose of this project was to compare two underground, batch coal haulers ? battery haulers and shuttle cars ? in order to determine the more viable machine to implement. The specific standards for battery haulers were investigated and compared to the requirements of shuttle cars in order to identify the unnecessary expenses related to the legal requirements that are attached to the machines. Costs such as running costs, capital costs, and maintenance costs were researched and compared over a typical life of machine. Average production rates and breakdown times were obtained and used to determine which machine would be more reliable in achieving the required annual production.

Jan 1, 2014

By A. More, J. M. Míguez, J. Bullón

In 2000 Ferroatlantica started a project with the aim to develop a new casting machine for silicon and other ferroalloys. Until now, it has been cast more than 25.000 tons of silicon for the chemical and metallurgical market. This system has improved the process yield, productivity and product quality which place?s Ferroatlantica at the top of technology development in this field. After the first presentation of the Ferroatlantica?s casting machine at Infacon X, we would like to show the improvements in the control which have permitted us to increase the lifetime of the copper and to obtain, at the end of the machine, the right product size for the customer avoiding the current necessity of crushing and sizing the lumpy metal. Furthermore, we have improved the system in relation to the obtaining of smaller granulometries at the end of casting machine. Not only is this kind of machine cost competitive for special silicon applications but also for other normal ferroalloys with different specifications of size and thickness.

Jan 1, 2007

By B. Ndlovu

The world mineral industry has over the years experienced growth in the production of nickel (Ni) due to its use not only in the catalytic industry but mainly also to its demand in the stainless steel production industry. Hence there is a need to produce more pure and marketable grades of Ni through the use of efficient purification routes such as solvent extraction. The V10-LIX®84-IC system resulted in nickel (Ni) extraction isotherm shifting to lower pH levels. The pH window of opportunity for the extraction of Ni subsequently increased in solution containing magnesium (Mg) and calcium (Ca) even though the system also resulted in slight shifts to less positive pH values for Mg and Ca curves. Results showed a synergistic effect of LIX®84-IC when added to V10 for all elements, Ni, Mg and Ca. The pH50 values for elements Ni, Mg and Ca in the V10-LIX®84-IC system were 2.95, 8.10 and 7.70 respectively. Comparing results obtained when using V10 alone produced ?pH50 for Ni, Mg and Ca being 3.35, 0.15 and 0.70 respectively, which was a confirmation of the synergistic shifts for all the elements. The ?pH50 (Mg-Ni)value was 1.95 with no synergism and 5.15 with synergism and that for ?pH50 (Ca-Ni)was 2.10 with no synergism and 4.75 with synergism. This showed that the Ni-Mg separation factor was relatively larger than the Ni-Ca. Improved loading and stripping kinetics were also observed. Keywords: Nickel solvent extraction separation, magnesium, calcium, versatic 10 acid and LIX®84-IC.

Jan 1, 2008

By D. Almond

Low-grade, complex mineral deposits have resulted in the need for complicated large-throughput processing plants delivering increased productivity, reliability, and utilization, together with reducing operational costs. Complex mineralogy has resulted in complicated process flow sheets designed to recover minerals as efficiently as possible. In addition, the remote location of many minerals-processing plants, continuously rising energy costs, and fierce competition pose significant challenges to the modern mine, compounded by a global scarcity of qualified and experienced operational personnel. Over the last decade the Internet and automation technologies have undergone major advancements. Automation technologies, solutions, and concepts that existed, but were considered risky or unreliable prior to the year 2000, have now gained acceptance and matured. Furthermore, new technologies and different collaboration schemes have appeared, offering innovative solutions to the mining industry to address many of the challenges described. These advancements in reliable remote systems that access technology through the Internet provide significant opportunity to support mining operations, enhance process performance, provide engineering services, and proactively anticipate and execute maintenance services. This paper references a global survey of automation trends in the mining industry and the potential for an intelligent collaborative environment using automation technologies to exploit opportunities in operating the plant of the future, increasing effectiveness, and reducing operational costs. A variety of possibilities are described, including asset management solutions, remote access capabilities, performance monitoring solutions, advanced process control technologies, and the formation of an intelligent collaborative environment. A real example where this technology is used to support the operation and maintenance at a cement plant in Egypt is given to underpin the concepts described in this paper.

Jan 1, 2012

By L. Schernikau, W. H. Smith

Oil, coal, and gas account for approximately 80% of global primary energy, but only a portion of total airborne CO2 eq (approx. 35% at GWP20 to 65% at GWP100), even though they account for 95% of total measured CO2 emissions. The benefits of these energy sources, as well as their related costs, are not all incorporated in current energy policy discussions. Global greenhouse gas policies must include documented changes in measured airborne CO2 eq to avoid spending large amounts of public funds on ineffective or sub-optimal policies. The authors examined airborne CO2, which is less than half of emitted CO2, as well as reported CH4 emissions and the global warming potential of CH4 as published by the IPCC for coal and natural gas. The surprising conclusion is that surfaced-mined coal appears ‘better for the climate’ than the average natural gas, and all coal appears beneficial over LNG. Therefore, current CO2-only reduction policies and CO2 taxes are leading to unintended consequences and the switch from coal to natural gas, especially LNG, will not have the desired impact of reducing predicted future global warming; in fact, quite the contrary. A large portion of anthropogenic global warming is attributed by the IPCC and IEA to CH4, but it must be noted that CH4 emissions from natural sources and from agriculture account for approximately 40% and 25% of annual global CH4 emissions respectively. Energy accounts for about 20% of documented CH4 emissions. CO2 contributes only approximately 35% of annual airborne anthropogenic GHG emissions after accounting for CH4, over a 20-year horizon. At a 100-year horizon, the contribution of CO2 increases to approximately 60%. Energy policies that do not consider all GHG emissions along the entire value chain will lead to undesired economic and environmental distortions. All carbon taxation and CO2 pricing schemes are incorrect and need to be revised. At IPCC’s GWP20 an approximately 2%1 higher loss of CH4 across the value chain prior to combustion of natural gas versus coal will lead to ‘climate parity’ of coal with natural gas. According to public data, natural gas value chains have high CH4 and undocumented CO2 losses. On a global average, using only IEA-documented CH4 data, natural gas emits approximately 15% more CO2 eq than surface-mined coal, over a 20-year horizon. This difference will increase as the use of shale gas and LNG expands. Investors should support all energy systems in a manner that avoids an energy crisis, including intermittent renewable energy systems where they make sense. If CO2 emissions need to be reduced, one of the most effective ways would be to install ultra-supercritical power plants with CCUS technology. However, the undisputed benefits of increased CO2 concentrations in the atmosphere because of its promotion of photosynthesis and plant growth effects (fertilization) need to be considered in energy policy decisions as well. The authors suggest that future research and development should concentrate on reducing net emissions from fossil fuel power plants and providing cost-effective and reliable new conventional power generation capacity, utilizing clean coal and clean natural gas technology.

Mar 2, 2022

By S. P. Pearton

"Pumpable emulsion explosives have been available to surface and underground massive mining operations for decades, and their unique properties offer significant advantages in terms of improved safety, reliability, and performance. However, the benefits of pumpable emulsions have been unavailable to narrow-reef mining operations due to the lack of technology necessary for their successful implementation in this challenging environment. Despite efforts to promote and enhance the safety and performance of bulk emulsions for narrow-reef stoping, little research has been undertaken to advance the pump technologies required for their implementation. This has resulted in a gap in knowledge and technology, and as a consequence the successful implementation of a pumpable emulsion system has consistently eluded the narrow-reef environment.The purpose of the following investigation was to evaluate the viability of pumpable emulsion explosives for use in South African narrow-reef mining operations. By approaching the problem from multiple perspectives, this research aimed firstly to propose a theoretical framework and suite of equipment suitable for the implementation of pumpable emulsions within the narrow-reef environment. Through the development of this suite of pumpable emulsion technology, tests could be undertaken on the proposed narrow-reef emulsion formulation and pumpable emulsion technology to obtain the necessary understanding of the performance of the system under controlled operating conditions prior to its implementation in the broader mining industry."

Jan 1, 2015

By C. Kasatuka

Globalization creates investment opportunities for enterprises around the world. Attracting foreign investment has been a key challenge for economic growth in developing countries. Corruption, political instability, armed conflict, and other internal problems affect foreign direct investment (FDI) inflows negatively. A framework of criteria provides a basis for comparing non-commercial risk (NCR) among twenty-three mineral economies. Countries competing for foreign direct investment inflows are ranked from least to most risky. This study compares Inward FDI Performance Index (IND) with NCR ratings in developing countries and shows that risk is increasingly mitigated by means of appropriately structured insurance. Given the option for countries with similar mineral potential, investors will generally invest in the country that offers lower non-commercial risk. Keywords: foreign direct investment, non-commercial risk, developing countries.

Jan 1, 2006

By J. M. McKinley

Mineral exploration programmes around the world use data from remote sensing, geophysics, and direct sampling. On a regional scale, the combination of airborne geophysics and ground-based geochemical sampling can aid geological mapping and mineral exploration. Since airborne geophysical and traditional soil-sampling data are generated at different spatial resolutions, they are not immediately comparable due to their different sampling density. Several geostatistical techniques, including indicator cokriging and collocated cokriging, can be used to integrate different types of data into a geostatistical model. However, with increasing numbers of variables the inference of the crosscovariance model required for cokriging can be demanding in terms of effort and computational time. In this paper a Gaussian-based Bayesian updating approach is applied to integrate airborne radiometric data and ground-sampled geochemical soil data to maximize information generated from the soil survey, enabling more accurate geological interpretation for the exploration and development of natural resources. The Bayesian updating technique decomposes the collocated estimate into two models: prior and likelihood models. The prior model is built from primary information and the likelihood model is built from secondary information. The prior model is then updated with the likelihood model to build the final model. The approach allows multiple secondary variables to be simultaneously integrated into the mapping of the primary variable. The Bayesian updating approach is demonstrated using a case study from Northern Ireland. The geostatistical technique was used to improve the resolution of soil geochemistry, at a density of one sample per 2 km2, by integrating more closely measured airborne geophysical data from the GSNI Tellus Survey, measured over a footprint of 65 x 200 m. The directly measured geochemistry data were considered as primary data and the airborne radiometric data were used as secondary data. The approach produced more detailed updated maps and in particular enhanced information on the mapped distributions of zinc, copper, and lead. The enhanced delineation of an elongated northwest/southeast trending zone in the updated maps strengthened the potential for discovering stratabound base metal deposits..

Jan 1, 2014

By F. N. F. le Roux

This paper describes the method used for excavating the upper 33m of emergency access shaft E2 for the underground single track tunnel running between Park and Rosebank station of the Gautrain Rapid Rail System. The soil was decomposed shale and diabase from the Witwatersrand Supergroup. The location was in the car park of The Wilds (a public park) in Johannesburg. The method proved very simple and required less complex plant and equipment than normal when excavating the shallow soil sections in shafts. It involves driving steel sheets ahead of the shaft sump into the soils and then excavating inside the ?tub? created by the sheets whilst supporting the sheets above with regularly spaced circular Steel Rings. It is the intent of this paper to discuss the method and design approach to the method. This will be done at the hand of experiences at E2 shaft..

Jan 1, 2009