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By M. Royle, A. Bloem, R. Uken

Rock mass damage induced by mining increases the fracture frequency and joint aperture width in the pit walls and rock mass behind open pit mine slopes. The depth and intensity of this mechanical damage relative to the pre-mining state is not well understood and yet is a major factor in the development of slope stability models and operational guidelines. The induced damage can be partitioned into domains or zones. The blast damage zone is essentially a ‘free flow’ rock mass volume, which transitions quite rapidly into the excavation damage zone, which extends beyond that. In both zones, transient high in situ water pressures are often linked to unstable slope conditions. Whereas rock damage can enhance passive depressurisation in the rock mass, high infiltration rates on the other hand, as one could expect during rainstorm events, will decrease slope stability within the dilated pit rock mass, especially in the blast damage zone-excavation damage zone, by increasing pore pressures for short periods of time. Ice jacking and freshet are additional factors to consider in (sub) arctic environments and can be exacerbated by unfavorable rock fabric orientation. On a local scale, brittle deformation damage zones, in the form of faults, can contribute to slope instability, or enhanced stability because of slope depressurisation, depending on their location and orientation relative to the pit shape and the water sources. In this study, the shapes of the damage zones and their anticipated impact on infiltration and/or passive depressurisation are considered for different pit morphologies, rock mass conditions, in situ stress, and hydrogeological settings. Some unusual hydrological situations, like mining towards rivers and lakes and the potential effects on pore pressures, are also considered. This investigation has resulted in the development of a method to adjust initial hydraulic conductivity values used to estimate transient pore pressure conditions found in rock masses exposed in different pit morphologies and stress regimes as well as discontinuities’ orientation relative to open faces within the open pit mine. The changes in K values and pore pressures can then be used to determine hydrogeological influence more accurately on future pit slope stability.

Sep 1, 2025

By F. T. Cawood, M. N. M. Cudjoe

The ability to conduct real-time material tracking in mines has been a long-standing challenge. Technological innovations such as radio frequency identification technology (RFID) have over the years contributed to the effective tracking of material flow and reporting of metal content. This paper outlines the laboratory procedures and results from testing the suitability of microdot technology as a viable technique for real-time material tracking in mining. The paper clarifies the reasons for conducting the test and presents the material safety data sheet (MSDS) from a South African and Canadian perspective. Microdots from three aerosol systems were immersed in water, heated to 100°C, and crushed into coarse and fine material. These tests were used to ascertain if the technology could withstand mining conditions. A strength, weakness, opportunity, and threat (SWOT) analysis was used to evaluate and compare microdot technology with RFID. It was shown that microdot technology has some potential to track ore parcels because data integrity was retained after exposure to post-blast mining conditions. However, more improvement is required to digitally detect microdots before the technology can be implemented at scale in the mining industry.

Apr 2, 2022

By J. Fu

"Since it was first identified in 1817, selenium has received considerable interest. Native selenium and a few selenium minerals were discovered several decades later. With the increasing number of selenium minerals, the occurrence of selenium minerals became the focus of much research. A great number of selenium deposits were reported all over the world, although few independent selenium deposits were discovered. Selenium is obtained mainly as a byproduct of other metals, and is produced primarily from the anode mud of copper refineries. This paper presents a comprehensive review of selenium minerals, as well as the treatment of copper refinery anode slimes for the recovery of selenium. Our focus is on the selenium minerals, including their discovery and occurrence, and the distribution of selenium resources. In addition, the main methods of recovering selenium from copper anode slimes are summarized. IntroductionSelenium (Se) was first observed in 1817 in a laboratory (Greenwood et al., 1984). The discovery of selenium was made by the Swedish chemist J.J. Berzelius and J.G. Gahn, who isolated selenium from a red residue in sulphuric acid from pyrite mined at Fahlun, Sweden. Selenium was named from the Greek word selene (moon), since it resembled tellurium, which had been discovered a few years earlier and named from the Latin word tellus (Earth).After the first observation of selenium in the laboratory, selenium received considerable interest. In 1954, E.P. Kaiser pointed out that Se is enriched in sulphide ores and often associated with Bi, Co, Sn etc. (Kaiser 1954). In 1959, Hawley and Nichol investigated selenium in Canadian sulphide minerals, and presented the content of selenium in sulphide from several deposits of different types. They also proposed that Se is enriched in lowtemperature hydrothermal pyrite (Hawley and Nichol, 1959). The thermodynamic conditions for forming native selenium and selenium minerals in sedimentary rocks were discussed, as well as geochemical behaviour of selenium near the oxidation zones of sulphides in the 1970s (Howard III, 1977; Zhu et al., 2003). Zhu et al. examined the morphology, features, and genesis of native selenium from Yutangba, Enshi City, Hubei Province, China in 2004, and pointed out, from the different forms of native Se, that selenium can be activated,transformed, remobilized, and enriched at sites such as in the unsaturated subsurface zone or in the saturated zone (Zhu et al., 2005). The transport and deposition of selenium in felsic volcanic-hosted massive sulphide deposits of the Yukon Territory, Canada was studied and reported by Layton- Matthews et al. (2005)."

Jan 1, 2016

By S. Langea, H. Lieberwirth

Impact crushers are common machines in comminution plants. Their high size-reduction ratio and relatively simple design, make them a preferred tool even when subjected to harsh wear, and producing a large quantity of fines in some applications. Until now the alignment of the operational parameters was an operator’s responsibility. Due to the random process characteristic this is mostly done based on empirical values and sensor data, such as power consumption. This paper describes a new approach for online process monitoring of the horizontal-shaft-impact crusher. The application of robust, low-cost acceleration sensors enables the permanent observation of the process characteristics. The operational and evaluation methods are determined on the basis of experiments. Subsequently the recorded measurements are analysed in regards of throughput, rotational speed and product particle size distribution. Occurring signal characteristics are described based on physical and technical principles. The measured data of the acceleration sensors at varying operation conditions provide insight in the course of process. The accurate utilisation yields the determination of the preferential process conditions providing the best balance between the pros and cons of an impact crusher. Both the experimental method and the data processing is discussed from a scientific perspective, displaying a completely new approach for the operation of impact crushers. Keywords: Impact crusher, acceleration sensors, data processing, particle size

Jan 1, 2020

By H. Schunnesson, H. Fredriksson, D. Johansson, E. Söderström, S. Manzoor, A. Gustafson, M. Danielsson

Fragmentation analysis is an essential part of the optimization process in any mining operation. The costs of loading, hauling, and crushing the rock are strongly influenced by the size distribution of the blasted rock. Several direct and indirect methods are used to analyse or predict fragmentation, but none is entirely applicable to fragmentation assessment in sublevel caving mines, mainly because of the limitations imposed by the underground environment and the lack of all the required data to adequately describe the rock mass. Over the past few years, measurement while drilling (MWD) data has emerged as a potential tool to provide more information about the in-situ rock mass. This research investigated if MWD can be used to predict rock fragmentation in sublevel caving. The MWD data obtained from a sublevel caving mine in northern Sweden were used to find the relationship between rock fragmentation and the nature of the rock mass. The loading operation of the mine was filmed for more than 12 months to capture images of loaded load-haul-dump (LHD) buckets. The blasted material in those buckets was classified into four categories based on the median particle size (X50). The results showed a stronger correlation for fine and medium fragmented material with rock type (MWD data) than coarser material. The paper presents a model for prediction of fragmentation, which concludes that it is possible to use MWD data for fragmentation prediction.

Mar 2, 2022

By J. Du, V. Shukla, C. R. Kumar, U. Shivangi, D. P. Chakraborty

During the processing of iron ores, a large quantity of low-grade tailings containing abundant iron values in fine particle size range is produced. Due to the increasing demand in the high-grade ores for metallurgical operations and the stringent environmental conditions imposed on mining activity, it is essential to utilise the waste tailing pond slimes. Recovery of iron values from these tailing ponds not only enhances the life of the existing operating mines, but also enables achievement of a sustainable process. Iron ore tailing/slime (-150 μm) is produced after scrubbing and wet screening of a low-grade iron ore. Tailing beneficiation of iron ore has been addressed either by flotation or wet high intensity high gradient separation. The present paper aims to recover iron values from discarded slime containing assay ~56% Fe, ~6.5% SiO2, and ~7.0% Al2O3 from the Noamundi processing plant by using a high gradient magnetic separator (HGMS). In this process, tailings are effectively processed with a vertical pulsating high gradient magnetic separator to produce a relatively high-grade iron concentrate. The results of investigation indicate that this novel process is capable of producing an iron concentrate assaying ~ 60% Fe and ~3.25% alumina with a yield of ~55 % on weight basis and recover > 65 % iron bearing particles from the tailings. More importantly, the corresponding tailing contained ~45% Fe. It was concluded that this novel process may be effectively used to recover iron values from low-grade hematite tailings. Keywords: Iron ore slime, Fe recovery, HGMS, yield, Noamundi

Jan 1, 2020

By D. Orynbassar, N. Madani

This work addresses the problem of geostatistical simulation of cross-correlated variables by factorization approaches in the case when the sampling pattern is unequal. A solution is presented, based on a Co-Gibbs sampler algorithm, by which the missing values can be imputed. In this algorithm, a heterotopic simple cokriging approach is introduced to take into account the cross-dependency of the undersampled variable with the secondary variable that is more available over the entire region. A real gold deposit is employed to test the algorithm. The imputation results are compared with other Gibbs sampler techniques for which simple cokriging and simple kriging are used. The results show that heterotopic simple cokriging outperforms the other two techniques. The imputed values are then employed for the purpose of resource estimation by using principal component analysis (PCA) as a factorization technique, and the output compared with traditional factorization approaches where the heterotopic part of the data is removed. Comparison of the results of these two techniques shows that the latter leads to substantial losses of important information in the case of an unequal sampling pattern, while the former is capable of reproducing better recovery functions.

Aug 1, 2021

By G. Segaetsho

"Conventional blasting rules of thumb used to develop blast designs are based on parametric ratios, with insufficient consideration of the rock mass factors that influence the achievability of final wall designs. At a hard-rock mine in Botswana, catchment berm designs were frequently unachievable, which exposed the mining operation to safety hazards such as local wallrock failure from damaged crests, frozen toes, and rolling rockfalls from higher mining levels. Increased standoff distances from the highwall reduced the manoeuvring area on the pit floor and the extraction factor that was safely achievable. Application of rock mass classification and the Blastability Index (BI) as a means to improve wall control was investigated. Zones were defined according to rock types forming the western highwall rock mass, and distinguishing rock mass classification factors were used to establish the suitable wall control designs. The approach combined rock mass classification methodologies such as the Geological Strength Index and the Rock Mass Rating, and related them to the BI and discontinuities of the rock mass to produce a design input tool that can be used to develop objective wall control designs. The designs driven by the tool inherently take into account the rock mass characteristic factors at the centre of the rock mass classification methods mentioned above, and significantly reduce the dependence on rules of thumb. It was found that this approach produces designs with explosive energy measures that are consistent with the required rock-breaking effort and the behaviour of discontinuities, while preserving perimeter walls.IntroductionBlasting is the first step in the comminution process. Various coordinated inputs contribute to its success, and in turn to the efficient execution of processes that lie downstream from the blasting step. Primary to meeting production and operational objectives of a mine, as well as the protection of human life and the mineral resource, is the achievement of highwall design specifications and competence. To this end, this study investigated the use of existing tools and knowledge for the achievement of highwall control goals at a hard-rock mine in Botswana."

Jan 1, 2018

By M. S. Shishvan, S. Klerkx, J. Sattarvand

The inaccurately drilled blastholes from the planned locations cause changes in the spatial distribution of explosive energy; some areas of the blast may receive a surplus of explosive energy, while others see a reduction. This results in less uniform fragmentation, reduces the efficiency of mining operations and increases costs. Additionally, it can lead to slope stability issues, flyrock, and uneven benches. To mitigate these problems, this study attempts to reduce differences in the explosive energy distribution (EED) through an optimization approach that adjusts the height of explosive columns in blastholes. Two optimization algorithms, the Genetic Algorithm (GA) and Tabu Search (TS), are tested. The latter is preferred for its local search neighbourhood strategy that gives superior computation times. Applications on different blast patterns result in improvements of 0.53–1.54%, or 2.14–3.94% when only the affected blocks are considered.

Sep 1, 2021

By T. Moodleya, I. Govender

Despite the widespread use of DEM to simulate particle processes, comparatively little work has been done to evaluate its accuracy. One of the reasons is a lack of available measurement techniques that can capture dynamic information at the momentum transfer timescale which is lower than 10-6 s - typical of the kinetics occurring within the drum. This work makes use of Positron Emission Particle Tracking (PEPT), an in-situ method capable of measuring 3D kinematic data at 1000 frames per second. PEPT measurements are performed using 3 mm and 5 mm mono-size glass beads in a 300 mm diameter rotating drum at critical speeds that are relevant to industry. We undertake systematic ‘tuning’ of DEM with a view to optimising the agreement between experiment and simulation. To ensure an equitable comparison scale, both the DEM and PEPT data are coarse grained within representative volume elements. This work seeks to validate DEM predictions against experimentally derived PEPT kinematic measurements. Keywords: PEPT, nuclear imaging, DEM, Tumbling Mills

Jan 1, 2020

By T. T. Chiweshe, L. S. Mokhahlane, M. Welman-Purchase

This study examined an alternative technique of extracting tungsten from wolframite ore using a fusion method with ammonium phosphate salt. Current techniques use alkali salts to decompose tungsten ores and use various purification methods to produce ammonium paratungstate, which is a key intermediate precursor in the extraction of tungsten. In this study, a two-step extraction process, which involves thermal decomposition of the ore using fusion and a separation stage, is examined. The novelty of this technique is the ability to completely decompose wolframite ore and form an unstable tungsten oxide phosphate (WO2(PO3)2) compound. The instability of WO2(PO3)2 in deionized water enables selective isolation of tungsten as insoluble precipitates of WO3 and WO2. The decomposition reaction of WO2(PO3)2 is influenced by the presence of oxygen and determined to be first order under ambient conditions. Scanning electron micrographs and X-ray diffraction analysis showed above 80% of the tungsten precipitated compared with the amount that remained in the filtrate solution.

Jul 10, 2024

THE THIRD INTERNATIONAL GEOCHEMICAL EXPLORATION SYMPOSIUM (Summary Account) This Symposium, co-sponsored by the Canadian Institute of Mining and Metallurgy and the Society of Economic Geologists, was held in Toronto, Canada in April, 1970. Over 700 delegates attended from 26 countries. Ninety papers were presented at the symposium and another 18 papers were read by title. The programme included: An Opening Session, Five General Sessions, a session on Remote Sensing Methods, a session on Geochemical Prospecting for Petroleum and Natural Gas, a session on Primary Halos and Lithogeochemical Methods, and a session on Statistics and Evaluation of Geochemical Data. The delegates were welcomed by Dr J. M. Harrison, President of the Canadian Institute of Mining and Metallurgy and Dr C. H. Smith, Regional Vice-President, North America of the Society of Economic Geologists. Dr D. R. Derry of Toronto delivered the opening address to the Symposium entitled 'Geochemistry-the link between ore genesis and exploration'. Dr Derry considered the various hypotheses on the origin of economic mineral deposits and expressed his belief that the next ten years will show evidence of an increased proportion of ore bodies that owe their origin, at some stage in time, to supergene agencies. He stressed that 'there are no sharp divisions between processes that form and destroy ore bodies at or near surface and those that form or destroy them at a depth of 20 kilometres in the earth's crust. The more we understand about the migration and concentration of metals the more accurately we can apply this knowledge to searching for unknown concentrations, whether at rock surface or at depth. To learn more about these processes of ore genesis we must rely on geochemical studies co-ordinated with field observations'. The five general sessions included accounts of progress in geochemical prospecting in different countries of the world, case histories describing the application of soil, stream sediment, geobotanical and biogeochemical techniques, papers on the behaviour of different elements under varied environmental conditions, discussions on analytical methods and the use of stable isotopes in mineral exploration. It is anticipated that the proceedings of the Symposium will be published late in 1970 or early in 1971 as a Special Volume of The Canadian Institute of Mining and Metallurgy. All registrants at the Symposium will receive a copy of this publication and copies will be available for purchase. At a special meeting called during the Symposium, charter members of the Association of Exploration Geochemists approved a constitution and elected an interim Council which will organize procedure and formulate policy during the coming year. The interim president of the Association is J. Alan Coope, Newmont Mining Corporation of Canada Limited, Toronto, Canada. More information on the constitution and membership in the Association will be distributed to learned societies and technical magazines in the near future. Membership will be open to exploration geochemists in all countries of the world. SOUTH AFRICAN COUNCIL FOR PROFESSIONAL ENGINEERS Report on Registration The Professional Engineers Act (Act 81 of 1968) came into force on the 14th February, 1969. At the time it was recognised that the success of the Act would depend in large measure on the extent to which engineers in South Africa would become registered professional engineers in terms of the provisions of the Act. The promulgation of the Act and its provisions relevant to registration were the subject of considerable publicity during 1969. This has resulted in a rate of application for registration far beyond the capacity of the very active committees set up for this purpose by the South African Council for Professional Engineers (SACPE). To give some idea of the task before these committees and before SACPE itself, which must ratify each case,

By A. W. Cramb

A three-day symposium on the production of clean steel organized by The South African Institute of Mining and Metallurgy, was held in September 1995 at Vanderbijlpark. It was attended by 151 delegates, who represented the whole of the steel industry in South Africa: Iscor Works, Saldanha Steel, Columbus Stainless, Highveld Steel & Vanadium, Iscor Research & Development, University of Pretoria, and Technikon Witwatersrand, as well as the users of steel products were represented. Professor Allan Cramb held the delegates attention with well-presented research and practical information. He obtained excellent interaction with the delegates by responding in depth to the questions put to him during the Symposium. In summary, he emphasized the following aspects of the elimination of defects during the processing of steel in continuously cast materials.

Jan 1, 1996

Plurigaussian simulation allows constructing lithofacies or rock type models that reproduce the contacts between facies in accordance with the geologist?s interpretation. Its implementation requires inferring the local facies proportions, but the uncertainty in the true proportions is not accounted for. The simpler model with constant facies proportions may not yield realistic results, due to the possibility of obtaining facies at locations where it is geologically unlikely to find them. This article presents a variation of the plurigaussian model, in which the facies proportions are represented by random fields. The realizations can be made conditional to soft geological informati onto account for local changes in the facies proportions. The model is illustrated via a case study of a porphyry copper deposit where four Gaussian random fields are simulated conditionally to drill hole data and to constraints on the probability of finding a given facies at specific locations (control points) in the deposit. Then the first two fields are truncated using the random thresholds defined by the last two, generating a three-facies model. The proposed random proportion model proves to be simple to use and to account for spatial variations of the geological characteristics and for the uncertainty in the facies proportions. Keywords: categorical variable; lithofacies; truncated plurigaussian simulation; regionalized proportions

Jan 1, 2008

By D. W. Dean, J. A. Ryder

"A computer system designed to assist in maintenance scheduling and costing, and in monitoring the performance of equipment, is described. The emphasis is on the information retrieval and implementation aspects of the system.INTRODUCTIONThe cost of the maintenance of equipment can account for a substantial proportion of the total costs of any large industry. These costs are made up of the following elements:(i) capital expenditure,(ii) maintenance labour,(iii) maintenance spares,(iv) maintenance overheads,(v) production losses.Control of these cost elements cannot be achieved without a system which maintains and retrieves the necessary infor¬mation efficiently.The system should provide engineering management with the information necessary to:(i) establish the cost of maintaining items of equipment,(ii)establish the economic life of equipment,(iii) determine breakdown patterns for the establishment of optimum inspection, service and overhaul frequencies,(iv) establish work schedules for those responsible for the maintenance of equipment,(v) establish the optimum maintenance labour complement,(vi) establish the optimum stockholding of maintenance stores items,(vii) improve the performance of equipment,(viii) justify the selection of a particular type and make of equipment,(ix) establish the reasons for any abnormal usage of materials and labour, and to(x)reduce the dependence on the human element for the control of equipment maintenance activities.Many industries have comprehensive and numerous equipment maintenance records but they experience great difficulty in retrieving the required information in the time available and with the labour available. Many industries do not bother to maintain meaningful records, because of this difficulty."

Jan 1, 2014

By S. Kauvosaari, M. Olofsson, O. Haavisto, M. Kosonen, J. Martikainen

The target in grinding circuit operation is usually to maximise the throughput and energy efficiency while keeping the product particle size on an optimal level for downstream operations. Furthermore, feed ore variations in size and hardness need to be compensated in order to stabilise the process. This is a challenging task for any circuit and requires good instrumentation, combined with careful control design. This study investigates the control of a two-stage iron ore grinding circuit with an AG and pebble mill at LKAB Kiruna KA3 concentrator in northern Sweden. A new control approach based on multivariable model predictive control (MPC) is designed, implemented and evaluated for the circuit. Additionally, advanced instrumentation including a volumetric charge measurement for grinding mills is utilised. The MPC control approach starts with step tests that are used to model the effect of manipulated variables (MVs) like feed rate, water addition and primary mill speed on controlled variables (CVs) such as final product particle size, power consumption and volumetric charge of the mills. In the control implementation phase, the models are then utilissed together with current process measurements and known operating limits to predict optimal future changes for the manipulated variables in order to reach the desired process output values. It is shown that the new control approach improves the stability of the circuit and reduces energy consumption. Keywords: Model predictive control, grinding, optimisation

Jan 1, 2020

By A. W. S. Schumann

A. W. S. Schumann The first reason for todays success lies in the very high standard which was set by our speakers today and I think that we owe a very special vote of thanks to Messrs P. M. C. Wilson, A. A. Oakes, M. J. Deats, A. C. Coetzee, R. E. Burnton and J. G. Ferguson. This, however, cannot account for the fact that there was a tremendous response even before anyone knew who was going to speak or what they were going to speak about. I suggest that the response was enthusiastic because people expected a more informal gathering with a greater opportunity for feedback, for an exchange of views and for questions and answers. The very popularity of the idea has defeated its own ends to some extent. This gathering is too big and many people must have been left with questions unanswered. Possibly one should arrange for a number of meeting places-there are many in the Chamber and the surrounding mining houses-and then have separate meetings in the morning with joint reporting session in the afternoon. Alternatively, we could have a symposium after the colloquium, using Webster's definition of a symposium as as 'a drinking party of merry fellows'. We all know that it is easy to discuss mining into the small hours. Obviously one cannot summarise todays papers and discussions, but I would like to make a few comments on technical matters and after that I would like to speak for a moment about what I see as major trends or tendencies which arise from discussions of this nature. Regarding the question of placing a village on a mine or away from a mine, I would mention that there is quite a body of literature on the adverse sociological effects on the development of children in any community in which the great majority of parents share the same occupation. It is something to be avoided if possible. We discussed the concept of the moving stockpile. If this is proved to be successful, it could save a considerable amount of money for Escom who could then avoid the construction of very large and costly staithes which are now regarded as parts of power stations. One does not see why both a moving stockpile and a staith should be necessary. By the way, speaking of Escom, I see that Mr Bob Scott is here; he has stopped pulling my leg by saying that we sell stone to Escom; perhaps someone has told him that if this is true, it must be the cheapest stone you can buy in this country. My next point relates to the use of epidiascope. It struck me again that this instrument which provides a visual image to accompany your message, can be very effective if it is properly used. These papers speak of a great deal of hard work which went into their preparation, and one really feels that the authors should have taken a few minutes more to prepare their drawings specifically for the epidiascope. There should be nothing on the drawing which is not necessary to illustrate a particular point and there should be nothing on the drawing which is not visible from the back of the hall. In particular, if one cannot read the figures along the sides, then one

When designing coal mine roof support, it is necessary to account for the uncertainties and variability that inherently exist within the rock mass and support elements. The performance of a support system is affected by these uncertainties, which are not taken into account in the current deterministic design methodologies used in South Africa. The key to the design of a roof support system is a better understanding of roof behaviour and uncertainties that can been countered during extraction. This paper sets out to develop a method that takes all uncertainties that exist within the rock mass and the mining process into account and provides a quantitative risk-based design methodology.

Jan 1, 2009

By A. C. Johnstone

The aim of the study is to determine if pit lakes are a sustainable coal mine closure option in South African. The water balance, chemistry, limnology, and bacterial population of three selected pit lakes were investigated. The lakes are in the three major coal basins of South Africa and are associated with different lithologies and mining methods. The major factors driving the water balance of the pit lakes are direct rainfall, runoff, inflow from old mine workings, and groundwater infiltration, with the major losses being evaporation or discharge onto surface. The study indicated that pit lakes can be designed as ’terminal sinks’ to provide a sustainable mine closure option. The pit lakes sampled have an alkaline pH, and mostly a sodium/calcium sulphate water with total dissolved solids content of less than 3000 mg/l. The phytoplankton and microbiological data indicates that the pit lakes support aquatic life. The study shows that correctly designed pit lakes can be an environmentally sustainable closure option for South Africa’s coal mines. A suggested design manual has been developed to assist mine owners and regulators in developing sustainable coal mine pit lakes as a closure option.

Oct 1, 2021

By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for the expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated ?risk? via the discount rate and other assumption contingencies around gold price expectations, operating parameters etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Carbon Modelling Technology and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. 44 percent chance of project finance loss.

Jan 1, 2012