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By Francesco Vegliò, Luigi Toro, Francesca Pagnanelli

"Different hydrometallurgical processes have been studied in order to recover manganese(II) from oxidised minerals such as MnO2 (Vegliò and Toro, 1994). An innovative acid reductive leaching carried out in soft experimental conditions was here considered using agro-industrial wastes containing carbohydrates as reducing agents (Vegliò et al., 1998).The leaching process was investigated from a kinetic and equilibrium point of view in order to optimize the experimental conditions and obtain high purity and concentrated MnSO4 solutions.The overall leaching process (not considering the complex network of intermediate oxidation reactions of the carbohydrates in hot sulphuric acid medium (Vegliò and Toro, 1994)) can be described by the following reaction:24 MnO2 + C12H22O11 + 48 H 24 Mn2+ + 12 CO2 + 35 H2O (1)A Shrinking Core Model (SCM) was modified by a variable activation energy term to take into account both the variable reagent concentrations and the reaction rate change with respect to the manganese dioxide conversion. The influence of the particle size in the kinetic model is discussed with the support of SEM analysis and BET surface measurements before and after leaching.Manganese extraction yield was maximised (170-190 g/L) using appropriate carbohydrates and acid excesses, while impurity concentrations were kept low (Fe<10ppm and Ca<300ppm) pre-treating the ores, using hydroalcoholic leaching medium and different combinations of down-stream processes. In particular precipitation, solvent extraction and adsorption onto active carbon were tested to eliminate Fe and Ca from MnSO4 solutions."

Jan 1, 2003

MFIRE is a computer simulation program that performs normal ventilation network planning calculations, and dynamic transient state simulation of ventilation networks under a variety of conditions. The program is useful for the analysis of ventilation networks under thermal and mechanical influence. MFIRE simulates a mine&apos;s ventilation system and its response to altered ventilation parameters, external influences such as temperatures, and internal influences such as fires. Extensive output enables detailed quantitative analysis of the effects of the proposed alteration to the ventilation system Network simulation using digital computers has become widespread throughout the mining industry in recent years. However, as the sophistication of the simulator increases (MFIRE, for example), the complexity of input data requirements and interpretations of results requires more skill and knowledge from the users. Perhaps the most difficult part of using MFIRE is to construct the data set describing the mine&apos;s physical layout and its ventilation properties. The initial attempts to get the data set running often reveal unknown or ignored aspects of the mine&apos;s ventilation. MFIRE was written in Fortran 77 and compiled with Microway1 Fortran for the Intel 80386 based computers with a 80387 math co-processor. The source code is portable and available for users who wish to modify the source code to operate on other computers. This user manual describes the development of MFIRE, the input format and requirements, the output, common errors, fire parameters, and examples MFIRE application. Valuable reference material is included in the appendices. Knowledgeable users may skip directly to the PROGRAM INSTALLATION AND OPERATION section to begin using MFIRE immediately.

Jan 1, 1995

By Wenbing Guo

Strip pillar mining method is one of the most important techniques for mining subsidence control in China. Mining depth is one of the most important factors that affect subsidence in strip pillar mining method. Six numerical simulation models were set up in this paper to simulate surface subsidence of strip pillar mining at different mining depths. The mining depth in these models ranged from 300 to 800 m. The simulated results were compared and analyzed. The results showed that the subsidence factor of strip pillar mining is related to mining depth. While other things being equal, the subsidence factor of strip pillar mining increases logarithmically with increase in mining depth. Their quantitative relationship was established based on the simulated results.

Jan 1, 2007

By V. Riihimäki, M. Luotamo

The Unit of Toxicological Risk Assessment of the Finnish Institute of Occupational Health (FIOH) is conducting a &apos;Health Risk Assessment for Metallic Chromium and Trivalent Chromium&apos; under the sponsorship of the International Chromium Development Association (ICDA) and the International Stainless Steel Forum (ISSF). This risk assessment will be conducted in accordance with the current European Union legislation in force (Council Regulation 793/93/EEC, Commission Regulation 1488/94/EEC, Dir. 67/548/EEC), but also to meet the regulatory obligations as set out in the European Commission REACH legislation proposal (Consultation Document, the Registration, Evaluation, Authorisation and Restrictions of CHemicals). Further aims include outlining the criteria for the setting of occupational exposure limits for metallic chromium and trivalent chromium compounds. Human Health Risk Assessment according to the current legislation shall entail hazard identification of the toxic end points (acute toxicity, irritation/corrosivity, sensitisation, repeated dose toxicity, mutagenicity, carcinogenicity, reproductive toxicity) including, as appropriate, dose (concentration) - response assessment, and derivation of the N(L)OAELs (No (Lowest) Observed Adverse Effect Level) and/or DNELs (Derived No Effect Level). Exposure assessments for workers, consumers and humans exposed via the environment take into account all the known intended uses. Risk characterisation will compare the typical and/or reasonable worst case exposure estimates to the N(L)OAELs or DNELs to determine Margins of Safety (MOS) for all human populations by each exposure scenario and type of effect, followed by conclusions about the presence or absence of risk. Although all of the key elements of existing legislation remain in REACH, the principal change is that, the burden of proof will be transferred from the member state authorities to industry. The new proposed format of Chemical Safety Report (CSR) will include Risk Management Measures (RMM) as an essential part of the report in addition to the risk assessment. The RMM plays a role in the evaluation of further testing needs and advocating reasons for possible waiwer of requirements. The research programme started in March 2002 and will be completed within the time frame of two years.

Jan 1, 2004

By K. Chief

American Indian lands contain a vast amount of renewable and non-renewable resources that have consequently been mined (Smith and Frehner). Therefore, it is understandable that tribes are concerned about environmental impacts from mining and their ability to minimize and mitigate these impacts. This has created a need to better understand mining and its environmental impacts. The University of Arizona Superfund Research Program Mining educational modules developed educational modules for tribal colleges focusing on environmental impacts of mining, remediation of mining wastes, and sociocultural impacts of mining. Educational modules are independently packaged units of study designed to enhance the learning process and can be modified and adapted to different learning scenarios and objectives. In addition to providing specialized knowledge, the modules feature hands-on activities, incorporation of technology, student involvement, discussion, and exchange of ideas. Modules will aim incorporate traditional ecological knowledge and approaches that promote effective science learning for native students. Modules are designed to augment existing associates of science programs (e.g. biology, chemistry) currently offered at tribal colleges and can be modified for use in K-12 education and for non-tribal audiences.

Feb 23, 2014

CONTENTS PAGE Simons, Theodore.-Basic Principles of Gravity Concentration-A Mathematical Study : :.. 1 Taggart, Arthur F. and Gaudin, A. M.-Surface Tension and Adsorption Phenomena in Flotation 11 Hersam, Ernest A.-Factors Controlling the Capacity of Rock Crushers 12 Shaw, S. F.-The Ore Deposits of Sierra Mojada, Coahuila, Mexico 12 Wilson, Philip D.-The British Columbia Batholith and Related Ore Deposits 26 Greensfelder, N. S.-Shot-firing by Electricity 27 Mitke, Chas. A.-Metal Mine Ventilation in the Southwest 28 Foley, F. B. and Howell, S. P.-Neumann Bands as Evidence of Action of Explosives upon Metals 30 Schwartz, H. A., Payne, H. R., Gorton, A. F., and Austin, M. M.-Conditions of Stable Equilibrium in Iron-carbon Alloys 30

Jan 12, 1922

By Alan A. Campoli

The U.S. Bureau of Mines evaluated two different conventionallongwall gate entry systems in the Southern Appalachian Basin, where mining and geologic conditions are conducive for coal pillar bumps. These gate entry systems were in a coal mine located in the Pocahontas No.3 Coalbed under approximately 2,000 ft of overburden and a massive quartzite sandstone member, and both employed a center abutment pillar flanked by yield pillars. The 8O-ft-square tailgate abutment pillars within the first study area began bumping 500 ft in advance of mining. This was accompanied by face bumps on the tailgate corner of the longwall face. The 120-by 180-ft tailgate abutment pillars within the second study area did not begin to bump until mining was approximately 100 ft past. Coalbed stress change and abutment pillar dilation data demonstrated that a 15-ft-wide perimeter of yielded coal surrounded a highly stressed core in both sizes of abutment pillars. The 62 pet more core area per foot of gate entry in the larger abutment pillars prevented excessive load transfer to the corner of the tailgate panel and eliminated the face bumps experienced with the original gate entry design.

Jan 1, 1990

By S. J. Schatzel

Longwall coal mine operators in the US are required to ventilate multi-panel longwall districts but may have little or no knowledge about what happens to the ventilation air between the inlet evaluation points (IEPs), bleeder evaluation points (BEPs), and bleeder fans. The effectiveness of bleeder performance can directly influence the ability of a ventilation system to remove and dilute coal bed methane emissions. Consequently, the performance of coal mine bleeders is an important aspect of underground worker safety. U.S. coal mining stakeholders have acknowledged their belief that the T- junction split at the longwall face tailgate corner is very important in controlling the distribution of ventilation air. The percentage of air directed inby towards the bleeders and bleeder fan and outby to the submains is often not well-defined and can vary over the life of a longwall panel. To obtain direct measurements of bleeder performance, a tracer gas, sulfur hexafluoride (SF6), was released into the intake air stream along the panline of active longwall panels and in the bleeder/gob ventilation air inlets of an inactive panel. Tracer gas sampling was conducted underground using tube bundles attached to permissible vacuum pumps in the gateroads, former gateroads, and bleeders. Surface tracer gas monitoring was also conducted from operating gob boreholes and from bleeder fans. Testing was performed on multiple longwall panels which included various phases of longwall development and variable path lengths of ventilation air transport to bleeder fan installations. The applied methodology defines and describes coal bed gas pathways, rates, and volumes of movement at the bleeder/gob interfaces, and indicates flow rates for air/gas mixtures within these gobs. These findings are reported for three stages of longwall extraction using direct field-based measurements. Changes in the T-junction ventilation air distribution over the life of a longwall panel and its variable effect on panel ventilation airflow are discussed. These findings will assess the effectiveness of commonly applied ventilation strategies for improving air distribution and ventilation controls to meet statutory requirements and to achieve the desired ventilation patterns through multiple phases of longwall panel extraction.

Jan 1, 2011

By D Vidyarthi

Blasting is the most important activity in the mining industry, the world over. It is a well known fact that only part of the explosive energy gets utilized in causing the actual rock fragmentation. The rest of it gets converted into blast-induced ground vibrations and noise. Though blast vibrations cannot be totally eliminated, it is possible to minimize them by optimization of blast parameters. This paper highlights various in-house efforts put forth by the author towards site specific blast optimization and the monitoring of blast vibrations. It also deals with the prediction curves developed by regular regression analysis for the prediction of ‘blast vibrations’, ‘peak particle velocity’, ‘safe charge’ for various blasts.

Jan 1, 2007

By G. E. Geiger

The purpose of this research was to develop a computer simulator fur predicting the air quality in existing coal mines as well as a design aid for developing new mines. In addition to the air quantity flow, the other variables of tempera Lure, moisture, methane and respirable dust are necessary to determine the air quality. An additional feature of this simulator is that it allows parametric studies of these variables to explore the effect that these variables have on the air quality of an operating mine system. The research has also pointed out arias where more research is needed, and promote better and more systematic data taking techniques. Wang and Hartman (see Reference 9, on page 1-98 of Section 1) had already published a computer program to determine the ventilation of large mines, and Wang and Saperstein (see Reference 10 on page 1-98 of Section 1) later published a refinement of the work in the previous reference. These references were the starting point of the simulator developed by this present research effort, and Section 1 of this report is a slightly modified version of the original vent elation program. The modifications were necessary to permit the additional programs of temperature-moisture, methane and dust to be

Jan 1, 1972

Anglo Platinum commenced commercial underground borehole radar (BHR) surveys during 2006 following a series of trial surveys using both the ?slimline? Geomole and Aardwolf systems. Current borehole radar systems comprise radio frequency transmitter ? receiver antennae operating at 30 -100MHz that measure the time taken for a transmitted pulse to traverse a rock volume and be received (Fig 1). The time taken can be converted to distance if the transmission speed of the pulse through the rock volume is known. The transmitted pulse may be reflected off a suitably orientated geological reflector (in reflection mode) or may be recorded in receivers located in other boreholes (cross-hole tomographic mode). In the Bushveld Complex lithologies, these radar systems have ranges of 30-50 metres in reflection mode depending on the electrical properties of local stratigraphic units. Both the Merensky Reef (MR) and the underlying UG2 have been shown to act as reflectors, which offer the opportunity of using BHR as an imaging or mapping tool. Reflection of the radar signal occurs wherever a strong contrast in dielectric constants occurs such as between norite and harzburgite or where chromitite stringers are present. [ ] Fig 1 Main elements of a borehole radar system Much experience has been gained in the practical application of BHR surveys in platinum mining. The value of a BHR survey is that it provides a continuous line of information to ?connect the dots? rather than a few discrete pierce points. BHR surveys can be used to mitigate risk in three crucial areas: ? Mine planning at the strategic as well as tactical level ? geotechnical evaluation of proposed shaft sites, detailed profiling or mapping of reef and disruptions of the reef such as faults, rolls and potholes; ? Mineral resource classification ? identification of structural discontinuities in orebodies affecting resource classification e.g. potholes and reef facies; ? Safety ? identifying areas with poor ground conditions that are often associated with faults, dykes and potholes.

Jan 1, 2007

By S Dirdjosuwondo, R Plaisance, L Thoma

PT Freeport Indonesia, a subsidiary of New Orleans-based Freeport McMoran Copper and Gold of New Orleans, operates a large mining complex on the Western half of the Island of New Guinea in Tembagapura, Irian Jaya, Indonesia. The IOZ (Intermediate Ore Zone) mine, one of the underground orebodies, is mined by block caving. The area affected by the cave collects a large quantity of rain and ground waters mixing with fine rock particles. The mixture, commonly called æwet muckÆ, sometimes spills into drawpoints and makes the working environment hazardous to the loader operators. Wet muck is observed in an increasing number of drawpoints in the IOZ mine and remote LHD (Load-Haul-Dump) technology has been implemented to handle the ore. The driving force for this automation project has been the safety of the loader operators. The system has been developed mainly in-house and incorporates state-of-the-art features. Up to eight remote loaders and nine rock breakers are controlled from an underground control room located approximately 400 metres from the active extraction panels. The two underground crushers and nine conveyor feeders are also operated remotely from an adjacent control room. The development of FreeportÆs remote system has taken time and considerable effort. Not only the success of the IOZ mine was at stake but also the fulfillment of environmental commitments pertaining to the mill tailings. Approximately eight per cent of the mill feed must come from underground skarn deposits to neutralise the acid-generating tailings generated by the huge Grasberg open pit ores.

Jan 1, 2000

Various reagents are added to flotation pulps to manipulate the chemical environment in order to create favourable conditions for the separation of the desired mineral from the unwanted gangue. Interactions occur between these reagents and between the other chemical parameters existing in the flotation pulp which complicate the elucidation of the behaviour of the respective reagents. This paper discusses the roles of the main classes of reagents added viz. collectors, frothers, depressants and activators, as well as the interactions between frothers and collectors. A case study reporting synergistic interactions between thiol collectors in the flotation of pyrite at pH = 4 is included. The use of Potassium n-butyl xanthate (PNBX) and a dithiocarbamate type collector (DTC) were tested both as pure collectors and as components in a collector mixture. In the batch flotation tests sulphur recovery and grade, water recovery, rate of recovery and image analysis of the surface froth were used to evaluate the effect of the mixture on the overall flotation performance. Bubble loading tests showed that the use of the mixture improved the efficiency of the particle collection process by bubbles. Thermochemical measurements of the adsorption of the collectors onto the mineral, indicated the formation of different surface products by the two collectors.

Jan 1, 1998

By BUREAU OF MINES

In 1948 the United States became a net importer of oil. Coupled with an unpre- cedented domestic production of 5,900,000 barrels daily, imports approximating 500,000 barrels made available a total supply of 6,400,000 barrels a day. Thus, by herculean effort, the oil industry was able to meet an extraordinary demand at home and, in addition, to ship abroad almost 400,00 barrels daily of petroleum and products. The country's oil position now differs greatly from that prevailing at the be- ginning of World War II. Then, actual oil production averaged about 4 million bar- rels a day, and productive capacity probably was greater than 5 million barrels a day. As the demand of the military and industrial machine grew with the rising tempo of the drive toward victory, the United States not only met its own needs but pro- duced about two-thirds of the total oil requirements of the Allied Nations, excluding Russia. As a people, we can be deeply grateful that the Nation's petroleum resources were adequate and sufficiently developed to support such a tremendous effort. Even in those critical hours when immediate needs were the paramount issues, a prudent Congress paused to contemplate the importance of an assured long-term supply of liquid fuels. From these deliberations came the Synthetic Liquid Fuels Act of 1944, which authorized research and development work on new sources of oil coal, oil shale, and agricultural and forestry products. ce World War II, a civilian demand for 6 million barrels of petroleum prod- ucts has become the order of the day every day. By drilling as many as 39,000 new wells a year, the production rate has been increased enough to meet domestic require- ments by a bare margin. Some imports were necessary, however, to fill both domestic and foreign demands, and these doubtless will increase. Is this policy of exploration within the United States and the development of oil in foreign countries adequate insurance for the fulfillment of our future national needs? This question has two aspects one purely civilian and economic in character and the other significant from the standpoint of our national defense. There are now approximately 4,000 producing oil fields in this country. At first thought, it would appear that production could decline in a considerable number of these fields without materially affecting the over-all daily output. However, 48 percent of the oil comes from only 111 major fields which contain 50 percent of the total proved domestic reserves. It is apparent, then, that the flow from large fields - having proved reserves of 100 million barrels or more each must be sustained if daily production is to be kept at the present levels. Essentially, this means that new major fields must be discovered about as rapidly or perhaps more rapidly than the older ones lose productive capacity. From 1940 through 1947, only eight major fields with estimated reserves of more than 100 million barrels each, were discovered and proved - an average of one such field a year. The total estimated reserve of these eight fields was less than 1 year's supply at the present rate of use. As drilling continues, some existing fields ultimately will prove reserves larger than those now known. Without a pronounced increase in the num- ber of major discoveries, however, the prospects for increasing our present productive level are not encouraging. Any gap that appears between domestic productive capacity and demand could be filled with supplies from proved oil resources abroad. Assuming cheap pipe-line and tanker transportation to the United States, freedom from exorbitant taxes and charges

Jan 1, 1949

By L. A. Price

With increased stripping ratios and with dwindling ore content, the mining fraternity is increasingly turning to larger and larger equipment for profitable open pit operations. The availability of higher horsepower prime movers and increased-capacity electric transmissions using either wheel-mounted or axle-mounted traction motors makes a reality of single-axle, rear dump trucks having 150 to 250 ton capacity. The size of electric loading shovels is inherently geared to the size of haulage equipment. To work effectively with this new generation of trucks, the Harnischfeger Corporation has introduced its P&H Model 2800 with a capacity of 20 to 25 cu yd and a working weight of nearly 1,500,000 lb. The Model 2800, depicted in Figure 1 loading a 200 ton truck, has many new electric and mechanical features designed to give excellent production and low cost operation. Chief among the new features is the ELECTROTORQUE control system. Electrotorque is a completely static, solid state electronic system supplying controlled power both to the armatures and to the fields of the d-c shovel drive motors. It eliminates many major electrical rotating machines and their attendant maintenance. The system was developed jointly by ASEA of Sweden and Harnischfeger Corp.

Jan 1, 1970

By B. J. Moore

This Bureau of Mines publication estimates that U.S. helium resources as of January 1977 were 710 billion cubic feet. These resources are broken down into four classifications, as follows: Helium in measured natural gas resources and in storage, 201 billion cubic feet; helium in indicated natural gas resources, 150 billion cubic feet; helium in hypothetical natural gas resources, 175 billion cubic feet; and helium in speculative natural gas resources, 184 billion cubic feet.2 Most of the helium in natural gas is presently dissipated as natural gas is consumed as fuel and for other purposes. Helium resources of the United States may also be divided into three other categories: (1) Depleting and undiscovered natural gas resources, 589 billion cubic feet; (2) nondepleting natural gas, 83 billion cubic feet; and (3) storage, 38 billion cubic feet, of which 37 billion cubic feet is federally owned and 1 billion cubic feet is privately owned. The United States does not have any significant leasehold rights in the depleting fuel gas resources. However, through the Department of the Interior, it does have leasehold rights to about 70 percent of the helium found in nondepleting natural gas, and it owns over 90 percent of the helium in storage.

Jan 1, 1979

By George A. Laird

I. INTRODUCTION. THIS old and once famous district played, through its enormous production of silver and gold, an important part in the history of the State of San Luis Potosi. According to a pamphlet prepared under the direction of the Governor of the State, Sr. Don Blas Escontria, and presented to the visiting members of the Institute during the Mexican meeting of 1901, this district is situated 20 km. east of the city of San Luis Potosi, in a range of mountains of moderate height, extending 135 km. N. and S., and 16 km. E. and W.; and the mineralized area hitherto developed is about 600,000 sq. m. The history of the district,. as given by the record dated 1778, and formerly kept in the San Francisco convent, says that it was discovered in 1575 by Sr. Don Pedro Irarte, and adds that the city of San Luis Rey de Francisco del Potosi received its name (in allusion to the famous Potosi mines in Bolivia) by reason of the remarkable productiveness of its gold- and silver-mines in the first period of their exploration, during which they paid to the Crown, as " quintos " (the fifth part of the product), $97,000,000, as appears from the accounts of the royal treasury. The amount of the quientos paid during the " bonanza period " of 80 years was $72,000,000. The larger sum first mentioned probably represents a longer series of years. But either will suffice to indicate the great wealth of the mines. In 1663, the decadence of the industry began with the caving¬ in of several mines, concerning which the record of 1778, al¬ready cited, says, in substance, that on Good Friday one of the owners in the enterprise, in view of the unfavorable prospect of a lawsuit in which he was engaged, set fire to the timbers supporting the underground galleries and workings of the San

Jan 1, 1905

Whilst the fossil fuel-based power industry moves towards carbon capture and storage (CCS) or so-called &apos;geosequestration&apos;, the minerals industry should adapt to reap the benefits of the new technology. If CCS becomes viable, the door is open to potential key developments in mineral processing. For example, truly continuous steelmaking could at last be realised using natural or manufactured gas combined with generic melt circulation. Iron ore fines would form a thin molten layer moving countercurrent to the gaseous reductant on one side of a melt circulation loop with efficient post-combustion without deleterious effects of slag accumulation on the other. This eliminates oxygen steelmaking because carbon has no access to the circulating molten iron. Steelmaking merely requires addition of the appropriate low level of carbon and in-line impurities removal to meet product specification. Concerning non-ferrous smelting, nothing short of virtually zero gas emission will be acceptable in the future. For dolomite-hosted Zn/Pb sulfide ores, typified by those in the Carpentaria region of Northern Australia, the way forward proposed is sulfur fixation at the mine site employing the highly exothermic reaction of SO2 with dolomite, followed by encapsulation of sulfated dolomite in fused ore slag. This releases enough energy for direct ore smelting to individual metal products. However, without CCS the strategy would be unacceptable because of greenhouse gas emissions. The scheme is advocated for direct ore smelting at McArthur River. As a result, the environmental problems of disposal of flotation tailings are avoided. Also, highly energy intensive ultra-fine grinding is eliminated, as indeed froth flotation itself, with overall very significant energy savings and exceptionally high increases in metals recovery. Zinc and lead recoveries approaching 99&nbsp;per cent are predicted to be entirely feasible.

Sep 13, 2010

By Ebrahim Ghasemi

Problem statement: One of the most challenging safety problems in room-and-pillar coalmines is controlling roof falls during retreat mining. Roof falls not only cause both fatal and non-fatal injuries to miners, stoppages in mining operations, and equipment breakdowns, but also results in the inefficient recovery of coal reserves. Approach: Sufficient awareness of effective parameters related to roof falls is an important factor in roof control. In this study, the major contributing parameters on roof falls during retreat mining are introduced based upon experience and judgment acquired from extensive retreat mining case histories and a review of relevant literature. Key findings: The main roof fall parameters in retreat mining can be divided into three categories: geological, design, and operational. Key conclusions: The design and operational parameters can be controlled by the engineer and/or operator. By the appropriate selection of these parameters in the design and implementation stages of retreat mining, the roof fall risk can be decreased to an acceptable extent.

Jan 1, 2012

By C. Birch

"A mineral resource royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In South Africa, this payment is made to the State as holder of the mineral rights (The Mineral and Petroleum Resources Royalty Act of 2008). The principle purpose of this research paper is to identify if the State is benefitting from the mineral resource royalty by considering its impact on seven individual Witwatersrand gold mines.For this study, a simple financial optimiser model was created in Microsoft Excel that links the ore flow, block listing and the cash flow (excluding or including the cost of the mineral resource royalty). Mixed integer linear programing (the Excel Solver function) is utilised to optimise either profit or NPV (at 9% and 12%) by adjusting the cut-off grade.The impact on each of the seven mines mine was different but overall R7.9 billion is estimated to be paid in mineral resource royalty over their expected remaining lives. Due to the cost of the mineral resource royalty and increasing the cut-off grades, the total revenue decreases by R10 billion. A significant portion of this lost revenue would have been paid to the State in the forms of other taxation including company income tax which decreases by R2.8 billion. It is recommended that an industry wide investigation be conducted to determine if the resource royalty is adding to the State’s revenue, or destroying value including premature job losses. IntroductionTaxation of mining companies has become a very topical subject in the context of the postapartheid South African economy. There have been increasing calls for equitable re-distribution of mineral asset wealth for the benefit of all South African citizens and not just to an elite few. As part of the Mineral and Petroleum Resources Development Act (MRDPA) of 2002, the Mineral and Petroleum Resources Royalty Act of 2008 was introduced and came into effect in 2010 (South African Revenue Services, 2008). A mineral royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In the case where the holder of the mineral right is the State, then this payment is made to the State (Cawood, 1999). Studies on the potential impact of the mineral resource royalty on the minerals industry have been conducted during the formulation of the Act and subesquently. These include Cawood and Macfarlane (2003), who suggested a cap of no more than 3% (Cawood and Macfarlane, 2003), as well as Cawood (2011), who predicted rising cut-off grades and thus reducing mineral reserves. In 2013, Grobler completed a Masters in the Faculty of Economic and Management Sciences at the University of Pretoria and concluded that the impact of the mineral resource royalty on the economy is positive. She stated that the royalty has caused operating expenses to increase, but this does not appear to be significant. Furthermore, she stated that the royalty has not affected the way the mining industry operates (Grobler, 2014)."

Jan 1, 2016