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Book review Proceedings of the Symposium on Mining Methods. London, Institution of Mining and Metallurgy, 1974. 160 pp. The Symposium was held from 30th October to 1st November, 1974, and the papers include an interesting range of subjects in coal-mining operations, covering the improvements achieved to date, current practice, and required development for the future. Salamon, M.D.G., and Oravecz, K. 1. Rock Mechanics in Coal Mining. 119 pp. NIM reports Report no. 1822 Stability constants and linear free-energy relations for the platimtm-group metals. (22nd Oct., 1976). Report no. 1852 A revised method for the dissolution of platiniferous materials by the sealed-tube technique. (18th Oct., 1976). Report no. 1828 y-picoline adducts of the nickel, copper, and zinc chelates of 2-thenoyltrifluoroacetone. (26th Nov., 1976) Report no. 1847 A pilot-plant investigation of a kinetic model for flotation.(19th Nov., 1976)

Jan 2, 1977

By C. M. Rule, A. K. Anyimadu, L. Knopjes

Ongoing development work on ultra-fine grinding for various applications at the Group?s concentrators has been conducted by Anglo Platinum over the last few years. Current potential applications for mainstream grinding and concentrate grinding are the subject of a group-wide research and development programme. The first 10 000-litre 2.6 MW IsaMill was jointly developed by Anglo Platinum, Xstrata Technology and Netszch for installation at the Western Limb Tailings Re-treatment project in Rustenburg, South Africa. The unit was commissioned in late 2003/early 2004, and has operated in an intermediate concentrate regrind application successfully since. This paper describes the operational performance to date, as compared with the original duty specifications and objectives. The first mainstream M10 000 IsaMill with a 3 MW drive will be operational in November2006 at the Potgietersrus Platinum (PPL) ?Platreef? Sandsloot Concentrator in South Africa?s Limpopo Province. Key Words: Western Limb Tailings Re-treatment Plant, IsaMilling, Platreef, Platinum, Palladium, PGMs, tailings.

Jan 1, 2006

By C. Liu, G. Zhu, Y. Liao

"The effect of particle size on the flotation kinetics of a low-rank coal was compared using air bubbles and oily bubbles. Five kinetic models were applied to the data from the tests to derive the relationships between the flotation rate constant, the ultimate recovery, and the particle size fraction. The results show that oily bubble flotation (OBF) resulted in a lower ash content and higher combustible recovery than air bubble flotation (ABF), especially for the -125 ??m size fraction. It was found that the flotation of a low-rank coal in individual size fractions using air bubbles and oily bubbles can be best described by a first-order model with rectangular distribution of tendency to float and the classical first-order model respectively. OBF yielded higher ultimate combustible and ultimate ash recoveries. The flotation rate constants for OBF were higher in all the models except for the fully mixed reactor model. The ultimate recovery values and modified rate constants first increased and then decreased as the size fraction decreased. The trend of the flotation rate constants as a function of the size fraction was similar in all the models except for the fully mixed reactor model. IntroductionFroth flotation is a physical-chemical separation method that is widely used in coal beneficiation for the separation of fine coal particles from associated minerals in water slurries. Since the cumulative recovery of a component in the concentrate is proportional to flotation time, the flotation process can be considered as a time-rate recovery process (Emad, Mohammad, and Bahram, 2010). Therefore, the general mathematical flotation models that incorporate both a recovery and a rate function can describe flotation time recovery profiles.The kinetics of coal flotation, as a measure of coal recovery as a function of time, have been studied in detail by many researchers. Different kinetic models have been proposed and published in the literature. The order and the rate constant are strongly dependent on the flotation conditions, such as the particle size and size distribution, the bubble concentration, the reagent concentrations, and the operating parameters (Zhang et al., 2013). The particle size has been reported to affect the flotation kinetics to a great extent (Yoon, Luttrell, and Asmatulu, 2002; Ntengwe and Witika, 2011). Numerous researchers have studied the aspects of flotation kinetics while paying special attention to particle size (Meftuni and Ibrahim, 1997; Rubinstein and Samygin, 1998; Graeme, 2012). However, the effect of particle size on the flotation kinetics of a low-rank coal has been relatively little discussed."

Jan 1, 2017

By M. Kerr

Background- History The most significant change in mining since the late 1970?s has been the emergence of very large scale mining operations , which have been developed to ensure profitability with relatively low grade ores. These large tonnage operations have resulted in the development of larger unit sized machines in all operations of beneficiation, solid-liquid separation and dewatering. Often only a few flotation lines are installed and tonnages up to 25 ktpd and beyond are not uncommon. The increased throughputs have led to the development of circular, reactor type tank designs. The reactor cell system is the most up to date flotation cell design to utilise the principles of circular cell design. The Svedala DV mechanism was specially developed to suit the RCS machine giving good solids handling characteristics and excellent metallurgical performance. Development of UG2 ore type flotation equipment The equipment was developed and optimised by Svedala process from 1995. A higher energy specification was requested by industry. This amounted to 3kW/m3 for installed volume. Existing designs were at 1.5kW/m3. Hence various modifications were required to achieve the required power input. The first 50m3 machines were installed and developed at Impala Platinum?s UG2 circuit over a one year period. Once reliability and performance was achieved, over 300 large volume flotation cells were installed at Anglo Platinum and Lonmin operations as well. Pilot Plant Development The Impala Platinum High Energy pilot plant was commissioned in 2002 and had an installed power exceeding 5kW/m3. It was operated for over a year at the tailings dam booster station and was fundamental to the large scale scavenging plant design. All experience in overcoming mechanical and operational problems was applied in scale up design principles. A very robust mechanism was designed to accommodate the additional power input from installed motors, as well as the high SG (>1.5) of the feed source. The pilot plant flowsheet is shown in the figure below.

Jan 1, 2007

By L. Xingwana

"The purpose of this study is to understand how ore loss and dilution affect the mine call factor, with the aim of subsequently improving the quality of ore mined and fed to the mill. It was necessary to know the relationship between ore mined and delivered for processing in order for the mine to operate efficiently. A review of the literature suggested the mine-to-mill integration approach as a standard intervention to address declining mine call factors. A case study was undertaken at a gold mine in the Free State on the influence of the fragment size distribution on ‘free gold’, the effect of ore loss and dilution on the mill efficiency, and time tracking of ore movement from source to the plant. The study revealed that fragmentation, underground accumulation of ore, and dilution have a significant influence on the mine call factor and mine output. It was difficult to quantify the total ore loss due to the time lag between mining and milling, which is extremely variable, when estimating the mine process inventory. However, it was possible to estimate the total dilution with some degree of precision by analysing the daily blast and head grades. It is therefore recommended that mines accept that some gold loss and dilution will always occur during blasting and transport of broken ore, and this loss must be minimized.IntroductionThe mining of high gold grades is obviously very beneficial for the economic viability of an operation, but optimum recovery of the product is required to maximize profits (Chapman and Bindoff, 2010, p. 13). Although integrating these two requirements is very difficult, due to the various activities occurring between mining and processing, it is indispensable. The main driver of this integration is the impact that different ore types and characteristics have on head grade. According to Isokangas et al. (2012, p. 871), mining and processing operations involve a series of well-defined sequential stages that are complementary in an efficiently operating mine, with the performance of one operation affecting that of another. An attempt to optimize each function separately without considering the whole extraction process will not result in the optimum efficiency of the entire mine. Several researchers have developed a proven methodology for revealing these inefficiencies (Dance et al., 2006, p. 1)."

Jan 1, 2016

By G. C. Thompson

'Increased underground extraction of coal' was the theme selected for the 1981 mining vacation school, which was held at the University of the Witwatersrand in January and February. The response of the industry to the invitation to register was so good that three separate schools of one week each were arranged between 26th January and 13th February. In terms of the total number of delegates, some 225 actually attending, the school can be described as the most successful ever organized by the Institute.

Jan 1, 1981

By M. Hermanus, N. Coulson, N. Pillay

"SynopsisThis paper assesses the effectiveness of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH) and its potential to improve mine health and safety in South African mines. Developed by the Chamber of Mines, which represents the majority of the country's large scale mining employers, MOSH was devised to accelerate progress towards achieving health and safety milestones, which were set by tripartite agreement in 2003. The paper documents and builds on the findings of a study conducted by the Centre for Sustainability in Mining and Industry (CSMI) in 2011 that evaluated MOSH strategy, structures, and process of implementation.The study found that MOSH operated across the mining sector, was directed and dominated by experts and, despite best efforts to include other stakeholders, was led by employers. Statutory worker health and safety representatives and structures were not integrated into the complex change process developed by MOSH. The Mine Health and Safety Inspectorate (MHSI) and organized labour were ambivalent about direct involvement in MOSH and preferred regulatory measures to enforce the participation of mines. MOSH interventions were not targeted at mines with a poor health and safety record, and MOSH lacked a baseline from which to track impacts on sector-wide health and safety performance. The leading practices most widely adopted by mines were designed to improve, rather than fundamentally alter, existing practice. Although the depth of engagement with MOSH among stakeholders and on mine sites varied, mining companies, labour representatives, and the Mine Health and Safety Inspectorate (MHSI) saw the programme as significant.IntroductionIn 2011, the Chamber of Mines commissioned the Centre for Sustainability in Mining and Industry (CSMI) to evaluate the progress and effectiveness of the rollout of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH). CSMI, based in the School of Mining Engineering at the University of the Witwatersrand, is an independent research centre conducting health and safety research relevant to all major stakeholders in the mining sector. The purpose of the evaluation was to identify the factors that enabled or hampered the adoption of new technologies or practices. The timing of the evaluation, two years before the deadline for the 2013 safety and health milestones, allowed time for adjustments to be made. This paper summarizes the results of the evaluation and includes further analysis and discussion of the nature of the programme and the conditions that act to advance it or it hold back."

Jan 1, 2015

By E. C. de Beer

"SynopsisA number of important areas in nuclear fuel cycle, at both the front end and back end, offer ideal opportunities for the application of non-destructive evaluation techniques. These techniques do not only provide opportunities for non-invasive testing of e.g. irradiated materials, but also play an important role in the development of new materials in the nuclear sector. The advantage of penetrating radiation used as probe in the investigation and testing of nuclear materials makes X-ray and neutron radiography (2D) and tomography (3D) suitable for various applications in the total nuclear fuel cycle. The unique and different interaction modes of the two radiation probes with materials provide several opportunities. Their complementary nature and non-destructive character makes them most suitable for nuclear material analyses, analytical method development, and the evaluation of the performance of existing nuclear material compositions. This article gives an overview of the X-ray and neutron radiography/tomography applications in the field of nuclear material testing, and highlights a few of the success stories. Several selected areas of application in the nuclear fuel cycle are discussed to illustrate the complementary nature of these techniques as applied to nuclear materials.IntroductionDuring the development of new materials for the nuclear industry, materials testing and characterization are of the outmost importance to maintain safety standards and reliability. No compromise on safety in the workplace in any area within the total nuclear fuel cycle can be tolerated, and therefore most in-situ material characterization and testing is conducted by certified and qualified personnel schooled in destructive and non-destructive testing (DT and NDT) methods. Certification and qualification in NDT can be obtained through many training centres in South Africa in accordance with European, American, and other international standards (SGS, n.d.; SAIW, n.d.; African NTD Centre, n.d.)."

Jan 1, 2015

1. Book reviews Dislocations and properties of real materials, edited by M.H. Loretto. London, The Institute of Metals, 1985. 392 pp. Reviewer: F.R.N. Nabarro Au &Ag heap and dump leaching practice, edited by J.B. Hiskey. AIME, 1984. 162 pp. $20 (member), $15 (student member), $30 (non-member) plus $3.50 for postage and handling. (Order from SME Books, Caller no. D, Littleton, CO 80127, U.S.A.). Reviewer: R.A. Snodgrass The cost and availability of Colombian coal, by Eric D. Jamieson, with the assistance of Kathleen Jamieson. London, lEA Coal Research (14/15 Lower Grosvenor Place, London SWl W OEX). £50 (in member countries), £100 (in non-member countries). Reviewer: W.C. Mather Extraction Metallurgy '85. London, The Institution of Mining and Metallurgy, 1985. £42. Reviewer: R.A. Snodgrass 2. Recent publications Mining annual review 1985. London, Mining Journal, Jun. 1985. 600 pp. £26.50 (surface), £39.50 (air). High heat production (HHP) granites, hydrothermal circulation and ore genesis. London, The Institution of Mining and Metallurgy, 1985. 593 pp. £27 (members), £30 (non-members). Potential mineral resources of Egypt. 144 pp. US$10. Available from Bendix Field Engineering Corporation-MPGAP, Box 1237, Grand Junction, CO 81502, U.S.A. 3. Mintek reports Report M212 South African costs of equipment for the metallurgical industry (1984). Report M213 The response of as-rolled 3CR12 steel to heat treatment. Report M214 A computer programme for use in the development of multi-element X-ray-fluorescence methods of analysis. Report M221 Commodity profiles for selected metals. Report MIO7D Upgrading of alaskite rock to feldspathic sand. (First issued Jun. 1983; reissued Nov. 1985). IMM awards Given below are details of the trust funds to which applications are invited for grants, etc., payable in 1986. Application forms, which must be returned to the Secretary before 17th March, 1986, are available on request. Applicants should note that, in general, preference will be given to members of the Institution.

Jan 1, 1986

By J. R. L. Read, A. N. Ogden

This paper describes mining industry funded research that is being undertaken to address the critical gaps and uncertainties in our knowledge so that we can develop new approaches and create more effective ways for predicting the reliability of rock slopes in large open pit mines. It is envisaged that this research will not only lead to more effective pit slope design but further reduce the potential for unforseen geotechnical risks by enabling the geotechnician to communicate the risks more effectively with management and to optimise site specific control measures. To achieve this, several research tasks are in hand. The first is to accurately represent the structured rock mass with a 3D computer model (Siromodel) that creates polyhedral blocks from structural distribution data characterised by position, orientation and persistence. Siromodel is being coupled with particle flow and other numerical codes to evaluate how the structured rock mass deforms in the stress environment of an open pit and how a candidate failure surface may propagate through the dilating rock mass along the path of the least shear and/or tension resistance. A beta version of the Siromodel software has been distributed to 20 Sponsor mine sites for technical evaluation. The end state is to develop methods of analysis that characterise the reliability of a described candidate surface, and the probability of the candidate surface propagating to failure, recognising that the rock mass strength may well be defined in a different way than before.

Jan 1, 2006

By R. Romano, E. Montalar, J. B. Serón

The SMR geomechanics classification system (adaptation of RMR for slopes) is reviewed with data from 87 actual slopes in Valencia. In a research project, SMR has been applied by a GIS system, as a method to forecast stability problems in future road construction. As a result of this work a methodology for GIS application has been developed. On revient sur la classification geomechanique SMR ( une adaptation du RMR pour talus et pentes) avec les dates de 87 talus existant autour de Valencia. Dans le cadre d’un projet de recherche SMR a été appliquée, avec un système GIS, comme méthode de prévision de stabilité problèmes dans la construction de futures routes. Une méthodologie pour l’application du GIS a été développe. Das Geomechanische Einteilungssystem SMR (eine Anpassung des RMR an Böschungen) wird an Hand der Daten von 87 Böschungen im Gebiet von Valencia überdacht. In einem Forschungsprojekt wurde das SMR in einem Geographischen Informationssystem (GIS) als Methode zur Vorhersage von Stabilitätsproblemen bei zukünftigen Straßenbauprojekten eingesetzt. Das Ergebnis dieser Arbeit ist die Entwicklung einer Methodologie für die GIS-Anwendung

Jan 1, 2003

By S. Marx

More than twenty years ago Sasol, ISCOR, and some parastatals played a major role in ensuring that South Africa had sufficient technical skills. When the economy became tight and business and government were pressurized to decrease costs, the first budgets that were reduced were the training budgets. It seemed to be too expensive and too time-consuming to train apprentices. According to Stacey2, this is a major strategic issue facing the mining industry in South Africa. Two factors added to the shortage of skills challenge: ? Skills erosion and job losses ? Artisans ? currently the economy produces 5 000 but the need is 12 500 ? Level of mechanization in South Africa less than 10 per cent ? Average age of operators and artisans is 50 ? Greater awareness of occupational health effects of hand-held drilling. ? Workplace challenges ? The impact of HIV/AIDS and other employee wellness issues ? Changes and challenges in workplace environment i.e. the mining industry.

Jan 1, 2012

By M. H. Moys

I had the good fortune to attend the above Conference which was held in Kanpur, India, on 11-15 December, 1995. The Conference was held in honour of Professor P.C. Kapur of the Indian Institute of Technology in Kanpur. Professor Kapur was one of the early students of legendary teacher and researcher of mineral beneficiation, Professor Doug Fuerstenau of the Department of Materials Science and Engineering at the University of California at Berkeley. I have attended my fair share of international conferences and this one certainly rated at the top of the list on several counts. With an open-hearted hospitality which one might almost take for granted once you have spent some time in India, the organizers of the Conference looked after every need of their guests, including breakfast and transport to and from the conference centre, wonderful traditional lunches and dinners and outstanding entertainment in the evenings. The papers were generally of a high standard, and debate flowed enthusiastically and freely. Several international guests delivered seminal papers in their fields as discussed below.

Jan 1, 1996

By S. Burks

This paper develops the themes explained at the previous SAIMM Platinum conference by Whittle and Burks1. Optimization techniques can be used to significantly increase the value of mining businesses by enabling better long- term planning decisions. Open pit and underground mine design, mine scheduling, cut-off grade and blending, stockpiling, and the linking of these to flexible elements of the metallurgical recovery processes are all evaluated together. Transport or sale of intermediate products and the requirements of the product metal markets can also be considered. Experience shows that net present value (NPV) can potentially be increased by 5-35 per cent or more, usually even before the expenditure of significant amounts of project capital. The case studies presented include: ? An existing operation with multiple open pits and PGM concentrators linked to offsite downstream processing facilities, and with infrastructure constraints for which the scheduling of current operations and the potential for expansion were investigated ? An existing operation with an integrated portfolio of mines, concentrators, smelter and refinery, for which the various possible sources of ore for processing were prioritized to match the downstream process plant constraints and the product markets ? An underground operation in Zimbabwe for which the optimum mining width was calculated and expansion plans were evaluated ? An underground mine with many separate mining sections, for which a revised schedule was developed aiming to keep the shaft system and processing plant at capacity with the highest net value material available at any time throughout the life of mine. In the concluding section of the paper, a few brief notes are included suggesting how the strategic recommendations from enterprise optimization studies may be implemented by the Owner?s team.

Jan 1, 2012

By M. Shamsi, M. Nehring

One of the most challenging aspects in semi-mobile in-pit crushing and conveying (SMIPCC) system design is determining the optimum depth at which to change from a purely truck-based haulage system to a conveyor-based haulage system. We used scenario analysis to determine the optimum transition depth between a truck and shovel (TS) system and a SMIPCC system. Traditional pit-limit algorithms were used to generate the final pit limit on a copper deposit, which was then divided into four pushbacks. The final operating pushbacks (phases) were designed for both TS and SMIPCC. The end depths for each phase are viewed as candidate transition points to switch from the TS to SMIPCC haulage system. Economic calculations were applied for five different scenarios, including adopting SMIPCC from the outset (pure SMIPCC), after the first, second, and third phases, and finally not using the SMIPCC system (pure TS) at all. The analysis indicates that the second scenario, at a depth of 335 m, results in the lowest cumulative discounted cost (CDC). In this case, the CDC is 17.6% lower than that for the pure TS scenario and 10.7% lower than for the pure SMIPCC system scenario.

Sep 1, 2021

By A. Melkumyan, K. Silversides

Chemical assays collected from blast holes have the potential to greatly improve the local accuracy of grade models. Assays must be assigned to the correct domain or they will introduce errors. Boundary surfaces created from the widely spaced exploration holes (~50m) do not provide sufficient resolution to correctly delineate domain boundaries between closely spaced (3-5m) blast holes. This paper demonstrates a probabilistic method for classifying production blast holes near domain boundaries. Gaussian processes models are applied to identify the assays and assay ratios most suited to distinguishing particular domains. These models are combined with the exploration based surfaces to classify the blast holes that can be confidently assigned to a particular domain. A reiterative method is used, where information from the blast holes closest to the exploration holes is used to label blast holes further away. This is tested on two domain boundaries in a banded iron formation-hosted iron ore mine.

Sep 1, 2021

By M. Splaine, W. Davison, D. C. Atkinson

"Since 1964, Nchanga Consolidated Copper Mines, Ltd., has been developing and using production scheduling methods for optimizing its metallurgical operations in the short term (up to one year). Medium-range metallurgical planning has been possible only by successive evaluations of a single-year L.P. A modified version of Rosenbrock's direct search technique has now been developed to allow multi-year optimization of both mining and metallurgy for medium-range planning. The modifications to the search technique have produced a marked increase in computational efffciency for this heavily constrained problem in many variables and the system is a usable planning tool, given a reasonably powerful computer. The plans are 'optimum' in the sense that they yield the maximum present value of the operations.Each of the resulting five-yearly mine plans forms the basis for further detailed metallurgical evaluation by the established production scheduling system."

Jan 1, 2014

By P. Valicek, M. Farren, R. G. B. Pickering, G. Harrison, P. van Dorssen, W. Joubert, H. J. van Rensburg

Introduction In South African metalliferous mines, stoping operations are largely confined to narrow, tabular orebodies making mechanization extremely difficult. Limited flexibility in terms of stope width has necessitated drilling by means of hand held, pneumatic rock drills at most of our operations. As the largest producer of platinum in the world, we drill in excess of forty million stope blast holes per annum. Cleaning of the broken ore is also done by conventional means—utilizing scrapers and scraper winches. Conventional methods such as these carry high costs in terms of risk exposure as well as labour intensity. The purpose of this paper is to describe the development of a long hole stoping system suitable for the narrow platinum reefs. The new system had to be substantially safer and more cost effective than conventional mining. We selected a site that was conducive to mechanized mining and set out the parameters that we considered would meet our requirements. We then conducted a feasibility study to evaluate the conceptualized long hole stoping system in terms of specific goals. An analysis of the proposed system identified the Key Performance Indicators (KPIs). One of the most critical goals was to be able to create a man-freestope. This would mitigate the safety risk associated with normal stoping operations, as well as the inefficiency cost previously referred to. Other challenges included setting targets for long hole accuracy, stoping width reduction and specific blasting system performance for long hole stoping. We also modelled a critical span that we considered to be inherently safe and to ensure hangingwall stability, throw-blastcleaning and overall system productivity. Anglo Platinum Research and Development and Sandvik Tamrock entered into an agreement for the supply of a specialized long hole-drilling machine. The system was implemented and tested by the mine with the support of the other participants. The results achieved met our expectations. It was demonstrated that with this method of mining it is possible to have a man-free/support-free stope face and to achieve a reduction in shaft head cost per ton whilst reducing dilution. Key performance indicators assessed during the trial •Safety targets •Mining layout •Drill rig •Production targets •Support requirement •Explosives requirement •Services requirement •Ore removal and cleaning requirement •Training requirement Safety targets All persons involved with the project had to adhere to the mine’s safety programme including the zero-tolerance campaign, and were required to report all hazards observed immediately. Mine personnel and Tamrock carried out a full risk assessment on the drill rig before transporting underground. A further risk assessment was carried out when the machine was in position underground. Mining layout See Figure 1 and Figure 2 for a detailed description. Drill rig The drill rig was a combination of a Secoma P-Low LC 10long hole feed and an Axera low profile carrier. The choice of this equipment was made through consultation with Tamrock Sandvik. All relevant design perimeters of the area to be mined were taken into consideration. Production targets

Sep 1, 2001

By FT Cawood

The latest Draft MPRRB was released for public comment in October 2006. The main purpose of the Bill is to collect royalties at mines developed in terms of new-order mineral rights granted through the MPRDA process. The transition phase stipulated in the MPRDA will be completed by 1 May 2009, on which date mineral royalties will become payable to the state. The royalty rates stated in the MPRRB differ from mineral to mineral and also depend on the degree of refinement. Gold is the subject of this paper, where the royalty rate ranges from 1.5% (for refined gold) to 3% (for unrefined gold) of sales revenue. This royalty is payable regardless of profit, with a maximum 75% relief for loss-making mines. The purpose of this paper is to establish whether or not it would be necessary for gold mines to adjust their mineral reserve statements as a result of this Bill. The methodology is to add the royalty costs stipulated in the MPRRB to the actual quarterly information for the past ten years as reported by the gold-mine members of the COM. The rationale is to investigate the impact this Bill (in its current form) would have had on gold reserves that must be left unmined in the ground because of a higher pay limit. The results of the study point to a significant impact on reserves available for mining with the subsequent shortening of mine lives and retrenchment of workers. Had the MPRRB been effective for the 10 years prior to 1996, it would have resulted in 46 tonnes of gold being sterilised. Stated alternatively, 30 700 workers at COM gold mines alone would have lost their livelihoods.

Jan 1, 2007

By K. Thambi

"A recent amendment to Section 36(11)(e) of the Income Tax Act, 53 of 1968 (Tax Act) now extends the allowable deduction of ‘capital expenditure’ incurred by mining companies pursuant to the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). In terms of the Taxation Laws Amendment Bill 2016 (TLAB 2016), the allowable deduction has been extended to include expenditure incurred on infrastructure in terms of Social and Labour Plan (SLP) requirements as per the MPRDA. Interestingly, what necessitated the amendment was the need to recognize SLP requirements and to circumvent administrative difficulties for mining companies and the South African Revenue Services (SARS) in differentiating the use of developmental infrastructure by employees or the community. The successful implementation of such a deduction hinges on a sound SLP system. However, given the challenges within the current SLP system, this amendment could be considered somewhat premature. IntroductionSection 36(11) of the Income Tax Act 58 of 1962 (Tax Act) enabled mining companies to deduct certain capital expenditure in lieu of its other sections. In particular, it made provision for mining companies to deduct capital expenditure incurred pursuant to the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA), but excluding capital expenditure incurred in respect of infrastructure or environmental rehabilitation. As such, mining companies could only deduct such capital expenditure that related directly to their employees and not to the wider community (Clegg, 2018).In terms of the Taxation Laws Amendment Bill 2016 (TLAB, 2016) (South Africa, 2016a), the recent amendment to Section 36 extends the relief provided under section 36(11)(e) to include capital expenditure incurred on infrastructure in terms of the Social and Labour Plan (SLP) requirements of the MPRDA. In other words, the capital expenditure incurred by the mining company for the benefit of the people living in mining communities. To qualify for such a deduction, the infrastructure erected or developed by the mining company should reflect what was agreed between the mining company and the Department of Mineral Resources (DMR) as per the SLP requirements of the MPRDA (TLAB 2016)."

May 1, 2019