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The case for national research in mineral processing PRESIDENTIAL ADDRESS given by R. E. Robinson*, Ph.D., B.Sc. (Eng.) (Wits.) Some of you have only raised your eyebrows, some have made tactful comments, and a few of you have been fairly outspoken, but all of you in industry are concerned at the high level of State expenditure by bodies such as the National Institute for Metallurgy. The case for a national research organization in mineral processing is not clear-cut and in fairness I must present both cases - for and against. Competition for student members Each year the South African Institute of Mining and Metallurgy offers a prize (or prizes should the entries warrant it) of up to Rl00 for the best paper or dissertation on a topic appropriate to the interests of the Institute.

Jan 10, 1975

By Paul Fouchè

Contents ?Purpose ?Introduction ?Why manage a mineral resource ?Sampling or tracking from source ?How can RF tracking help ?Project Goals ?RF System ?Tracer Layout ?Antenna

Jan 1, 2005

By S. V. Rungan

The modern mining industry is increasingly being tasked to comply with various legal, industry and social prerequisites. In addition to complying with these, the mining industry is further expected to effectively report on their compliance. Although there are many models that aid the mining industry in compliance and reporting, it is perhaps opportune for a new model to be introduced. The Compliance Spindle is postulated as a new and alternative model which is easy to understand and has the possibility of implementation in South Africa and other jurisdictions as well. The Compliance Spindle is also an effective tool to educate future compliance officers. The new model provides for all aspects of compliance and reporting and can be easily modified to take account of new developments in the mining compliance and reporting arena.

Jan 1, 2010

By F. T. Cawood

This article offers a personal and independent view on the threats to the sustainability of the South African minerals industry. It argues that if the six identified threats of insufficient spending on research and development, general standard of education, nationalization, inadequate infrastructure, Aids prevalence and labour inefficiency are not acted upon as a matter of urgency, the future of the mining industry, along with its important contribution to the economy, is at risk.

Jan 1, 2011

By C. Botha

The South African democratically-elected government instituted policies and legislation that are intended to bring about change and transformation in the country and have drastically affected different industries, among others, the mining industry. The Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and the Broad-based Socio-economic Empowerment Charter (Mining Charter) were introduced in order to redress previous inequalities and to promote women's employment in the mining industry. This research evaluates the practical implementation of the MPRDA and the Mining Charter with specific reference to women in underground mining. A quantitative research paradigm was used. Data were collected through a process of a face-to-face interview surveys utilizing a structured questionnaire. The research setting was limited to the platinum-mining industry in the area of Rustenburg in the North West Province. The study population consisted of 195 available women working undergound at the mine. It is clear from the findings that mining companies are facing major challenges in their attempt to incorporate women in underground mining activities. Company policies regarding these issues must be firmly in place; however, the challenge lies in the translation of these policies into practice. In this regard, managers will have to play a leading role in the successful phasing in of women into the underground mining arena.

Jan 1, 2012

By P. N. Erasmus

This paper considers the fundamental concepts of support design for underground openings in highly stressed ground. It concludes that the conventional deformed reinforcing bar, woven mesh and cable lacing support methods that have been widely used in deep gold mines are quite in appropriate for the support of highly stressed tunnels. The following is suggested as the criterion for adequate dynamic support under rockburst conditions: the energy absorbed by a support unit (yielding through some acceptable limited displacement) should exceed the kinetic energy generated by the mass of rock that is intended to be retained by that unit. Duraset in conjunction with SRK Consulting has developed a yieldable steel tendon called the Durabar®. It is unique in the sense that it cleverly utilizes the property of the ductility of ordinary low-carbon steel from which it is made to accommodate the excessive displacement it is subjected to in the case of rockbursts or swelling ground.

Jan 1, 2009

By C. Botha

The South African democratically-elected government instituted policies and legislation that are intended to bring about change and transformation in the country and have drastically affected different industries, among others, the mining industry. The Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and the Broad-based Socio-economic Empowerment Charter (Mining Charter) were introduced in order to redress previous inequalities and to promote women?s employment in the mining industry. This research evaluates the practical implementation of the MPRDA and the Mining Charter with specific reference to women in underground mining. A quantitative research paradigm was used. Data were collected through a process of a face-to-face interview surveys utilizing a structured questionnaire. The research setting was limited to the platinum-mining industry in the area of Rustenburg in the North West Province. The study population consisted of 195 available women working undergound at the mine. It is clear from the findings that mining companies are facing major challenges in their attempt to incorporate women in underground mining activities. Company policies regarding these issues must be firmly in place; however, the challenge lies in the translation of these policies into practice. In this regard, managers will have to play a leading role in the successful phasing in of women into the underground mining arena.

Jan 1, 2012

By A. Chryss

Tailings management aims to dispose of tailings at the minimum cost consistent with meeting or exceeding imposed standards, including legislative obligations. This simple business objective requires managing the tailings storage facility (TSF) risks associated with surface water, groundwater, dust, sustainable closure, and potential catastrophic failure. The individual nature of every orebody and specific site topography ensures that no one size fits all. It has been suggested that paste and thickened tailings (P&TT) provides the ability to tailor the production and transportation of tailings to suit the deposition site, rather than the traditional approach of accepting that the deposition site has to accommodate tailings of high variability. While the traditional approach can be made to work, it is directly linked to the catastrophic failures of tailings impoundments, where large volumes of decant water have triggered failures due to overtopping, piping or slope instability, or saturated tailings have simply liquefied. P&TT offers an ability to mitigate these risks, and when implemented into new projects with variable tailings streams there are significant benefits to be realized. This paper identifies the interdependencies between the various tailings disposal processes, such as thickening, pumping, and deposition. It demonstrates that there are benefits in taking a more integrated approach to the design and operation of tailings disposal facilities. A collaborative industry project to tackle this challenge is described.

Jan 1, 2012

A General Meeting and Colloquium was held in Kelvin House, Johannesburg on Wednesday 29th September, 1971. The theme of the Colloquium was "The Ferro-alloy Industry". Prof D. D. Howat (President) was in the Chair. The meeting was attended by 106 delegates and was opened by the President at 10.05 a.m. OBITUARY The President: "It is my sad duty to announce the death of G. C. Needham, Fellow, who joined the Institute in 1966 and passed away on 27th September, 1971. As a mark of respect to the memory of the deceased and in sympathy with the bereaved I would ask you all to rise and observe a few moments silence." MEMBERSHIP The President: "I have much pleasure in announcing that the names of the following candidates, having been published in accordance with By-Law 5.2.2, Council has elected them to membership of the Institute. Fellows: Richard Lloyd Blandy, Brian Roger Borton, Brian Teversham, Peter Donald Dickson. Members: Frederick Brian Peacock, Peter John Stacey, Kenneth Niles Thanstrom, Byron J. Hayley, Ian Flemming Buchan, Abraham Hercules le Roux. Graduate: Ian William Coy. Students: Peter Boesley J ames, Kenneth Brian Perel. TRANSFERS From Member to Fellow: Cecil Eugene Fivaz, Peter Edwards. From Student to Graduate: Roy Stavely Traviss. From Student to associate: William Mitchell. I welcome the new members to the Institute and congratulate those members who have been transferred to a higher grade. COLLOQUIUM The first paper, presented by Mr S. Selmer-Olsen, Consulting Metallurgist, Amcor Limited, on 'Trends in Ferro Alloy Production' was published in the May issue of the Journal and comprised information and data relating to new developments in ferro alloy production in various parts of the world. This was followed by a paper-'Conductivity and Viscosity Properties of Slags produced in ferro-alloy manufacture' by D. 1. Ossin et al. This was a record of laboratory test work on slags containing both lime and magnesia, corresponding with the composition of slags encountered in the production of ferro chrome alloys when a dolomite flux is employed. The third paper-'Review of the work of the Pyrometallurgical Research Group of N.I.M. and Metallurgy Department, Wits.' presented by Dr P. R. Jochens, leader of the Research Group, outlined the progress made on ten different research projects presently under way in the Department of Metallurgy. These projects range from studies of the kinetics and mechanism of the reduction of chromite ores through the determination of the activities of MnO in slags to phase studies and melting point determinations in the alloy systems Cr-Fe-Si-C and Cr-Fe-Si. A new feature of this Colloquium was the introduction of the discussion panel composed of four or five individuals known to have special knowledge or interest in the subject under duscussion. Mr J. J. Coetzee was chairman of the first panel, Professor D. D. Howat of the second and Dr R. E. Robinson of the third. During the discussion of Mr Selmer-Olsen's paper an interesting contribution was made by Mr Jack Hayley of Transalloys (Pty.) Limited who pointed out that the lowest power cost in the U.S.A. was that from the TV A at 6 mils per unit (0,43 cents S.A.) while costs from other sources were 7 to 8 mils per unit (0,50 to 0,57 cents S.A.) He also referred to the use of 'pile sintering' of ore fines plus coke at certain ferro alloy plants in the V.S. and to the recent practice of 'graphitising' the paste used for Soderberg electrodes. The last session in the afternoon was devoted to a group discussion on 'Practical problems in Arc Furnace Operation', Mr H. R. Reid of Middelburg Steel Alloys (Pty) Limited occupying the chair, members of the panel being Mr J. Meintjies (Rand Carbide Limited), Mr J. Benn (Amcor) and Mr E. J. Jackson (Transalloys (Pty.) Limited). Mr Reid initiated the discussion by talking of the design and composition of electrode shoes, mentioning the use of the 85/15 Cu/Zn alloy and the comparison of hollow shoes and shoes cooled by tubes. Mr Meintjies discussed electrode management with particular reference to breakages, and dealt with casing and fin design and the welding of fins. Mr Benn dealt with aspects of closed top furnace operation with particular reference to the control of eruptions in the furnace and indicated that preheating of the raw materials might be well worth considering together with the development of a system for the detection of the water vapour present. Mr J ackson was concerned with shells, linings, refractories and tap holes. He deprecated the use of oxygen for opening the tap hole emphasising how uncontrolled use of oxygen led to loss of shape of the tap hole and quite severe burning out of the front hole resulting in time and labour in repairs. A notable feature of the Colloquium was the free discussion 'from the floor' of the hall. Many valuable and highly pertinent contributions were made spontaneously and usually in reply to some controversial topic raised by the discussion group.

By M. B. Díaz Aguado, I. Á. Fernández, C. González Nicieza, B. S. Menéndez

This paper summarizes the works that the Research “Group of Ground Engineering”, belonging to the Mining Department of the University of Oviedo, Spain, has been developing in close cooperation with the Regional Mining Department, since 2001, in order to control and monitor an experimental underground limestone exploitation by the room and pillars method. The aim of the current research is not only the geotechnical characterization of the rock mass (by means of laboratory and site tests) or the instrumentation of its displacements and stress changes (using convergence meters, INCREX probe, extensometers and rigid inclusion cells), but, moreover, to undertake intensive monitoring and control of such pilot mine, which is mined exclusively in order to accomplish this research. The data transmission was made on line via Internet, to achieve a full understanding of the behaviour of the experimental mine, to access data from remote locations and to visualize results from a website. All the collected information becomes input data for several numerical models using finite differences under a program developed in the research Group, ALMEC. The simulation and a final economical analysis lead to a design of an underground exploitation, at production scale, for a resource that is traditionally mined by means of open-pit process methods that could be worked underground with less environmental impact. The main purpose achieved by this exhaustive analysis is the technical and economic viability of such mine, for their optimisation for a future productive exploitation.

Jan 1, 2003

By A. N. Clay, N. N. Moeketsi, S. Joubert

For many years, mine-impacted water has been regarded as a problem and linked to long-term environmental liabilities. However, this water can be a renewable and a sustainable resource, provided that it is managed in a responsible and sensible manner. South Africa’s National Water Resource Strategy (NWRS, 2013) considers water that can be used to contribute to economic activity to be a water resource. Although all water resources are considered as belonging to the State, government does not appear to have meaningfully explored the use of mineimpacted water to contribute to the country’s economic activity. Africa is blessed with more sunshine than anywhere else, apart from Australia, yet we see no rollout of vast quantities of solar panels to ensure every African family has access to affordable power. This suggests that governments are incapable of managing such a free resource. At the same time, apart from the equatorial areas, water is a seriously constrained resource and yet we expect the same entities to manage a commodity none of us can live without. This paper explores the conversion of mine-impacted water from waste to a resource and how the inclusion of other stakeholders (such as water users, landowners, and ordinary South Africans) could benefit the process.

Jan 2, 2022

By M. Bailey-McEwan

The application of refrigeration on deep South African gold mines is mostly achieved through the medium of chilled water which is produced in central installations either on surface or underground. The amount of refrigeration has been increasing rapidly over recent years, and the total installed capacity on all gold mines now exceeds 1000 MW(R), with annual running costs exceeding R100 million for electricity alone. Hence, there are strong incentives to design such installations for optimal cost-effectiveness. The duty required of these installations varies considerably, owing to daily and seasonal climatic changes and the varying nature of the water demand. It has long been recognized that a computer program to predict installation performance as a whole under any given conditions would be highly desirable. An interactive computer program, CHILLER, is described which enables the user to build an installation, consisting of any configuration of cooling towers, water storage reservoirs and packaged water chilling machines. Externally-dictated conditions such as the weather and chilled water demand must be specified, and all quantities under control of the installation, including internal water flow rates and compressor capacity regulators, must be set. The time-varying performance of the installation can then be simulated. Examples are given of the application of the program in the design of a new installation, and in evaluating the effect of any modifications to existing installations.

Jan 1, 1987

By T. Oberthür

The Great Dyke of Zimbabwe constitutes the world&apos;s second largest reserve of platinum group elements (PGE) after the Bushveld Complex in neighbouring South Africa. Within the Great Dyke, economic concentrations of PGE are restricted to sulphide disseminations of the Main Sulphide Zone (MSZ), which are currently mined at the Ngezi, Unki, and Mimosa mines. Near-surface oxidized MSZ ores have a large potential. Their total resources are in the range of 160-250 Mt; however, all previous attempts to extract the PGE from this ore type have proved uneconomic due to low PGE recoveries (<< 50 per cent) achieved by conventional metallurgical methods. Within the ores of pristine, sulphide-bearing MSZ, the PGE are bimodally distributed. Platinum occurs mainly in the form of discrete platinum group mineral (PGM) grains (mainly bismuthotellurides, sulphides, and arsenides), whereas approximately 80 per cent of the Pd (and some Rh) is hosted in pentlandite. Within the oxidized MSZ ores, the PGE are polymodally distributed. Whereas the arsenide- and sulphide-PGMs that make up approximately 25 per cent of the original Pt content of the ore largely remain stable (relict PGMs), the remaining PGMs are disintegrated. The base metal sulphides are destroyed, partly releasing their base metal and PGE contents, and are replaced by iron oxides or hydroxides. Unspecified amounts of the PGE are redistributed and either form secondary PGMs, are found in chemically and mineralogically ill-defined (Pt/Pd) -oxides or hydroxides, or in iron-hydroxides, Mn-Co-hydroxides, and in secondary silicates. The problematic processing of oxidized MSZ ores is attributable to their complex nature and polymodal distribution of the PGE, prohibiting a significant upgrading of the ores by conventional metallurgical methods. Therefore, only bulk leaching methods are viable for ore treatment, and novel metallurgical methods have to be developed for the processing of these ores. Our ongoing work aims at locating the PGE in their mineralogical form in order to understand the mineralogical balance of the PGE in the ores and thereby facilitate the evaluation of metallurgical options for their recovery. A short overview on options and recent advances regarding the recovery of the PGE from oxidized ores is given.

Jan 1, 2013

Alluvial diamond deposits covered with a thick overburden cannot be explored effectively and mined profitably with the available conventional techniques. A novel directional drilling technique has been developed and site trials have been conducted at the De Beers Namaqualand Mines situated at the western coast of South Africa. This paper describes the technique developed as well as the results of the site trials. The main task of the project is to develop a tool and a supporting system to achieve a remote exploration and ore extraction method for inaccessible alluvial diamond deposits. The project involves the acquisition of a system, commissioning on-site and evaluating the information obtained during assessment. The project consists of the design -of certain tools and instrumentation for the system, investigations and desktop studies as well as development of the system&apos;s logistics. The operating philosophy of the system is based on the keyhole surgery principle. In this study a pilot hole was drilled first, starting from the surface with an inclination to reach deeply seated diamondiferous gravel layers, followed by drilling into a more or less horizontal gravel layer for a certain length and finally pointing-upwards reaching ground surface at a predetermined exit point. The pilot drill bit was then replaced with a larger diameter reamer/mining tool and an HDPE tail pipe was attached behind the reamer. The drill string was retracted back to enlarge the guide hole and flush the excavated ore to the surface through the tail pipe. The material flow in between the sections of the system was&apos; carefully measured to assess and record the gravel recovery rates. Several horizontal holes were drilled at preplanned drill paths to reach and follow the ore layer and the Ore extraction was achieved by means of a reamer/mining tool. Principles of the concept have been proven viable in this investigation.

Jan 1, 2010

By A. Sampson-Forsythe, P. Morissette, A. R. Punkkinen, D. R. Chinnasane

"The performance of ground support systems under dynamic loading is typically assessed in a qualitative and subjective manner. As a result, it is difficult to develop an explicit knowledge on the mechanisms of action and interaction of support elements subjected to rockbursts. This paper examines rockbursts that have occurred at Creighton, Copper Cliff, and Coleman mines since 2000, 2004, and 2006, respectively. The mines are located in the Sudbury Basin, in Ontario, Canada. The majority of pertinent information was obtained through on-site field assessments, seismic system records, and numerical elastic stress modelling. Passive monitoring is used to link the evolution of the frequency and severity of rockbursts to the evolution of mining and support practice at the three mine sites. Based on the collected data, ground support elements that enhanced the capacity of support systems to withstand dynamic loads are identified. IntroductionThe selection of appropriate mining methods, extraction sequences, rock mass de-stressing techniques, and ground support systems is of great importance in mitigating the level of rockburst-related risk. In burst-prone conditions, the design of support systems should account for the anticipated dynamic load demand and the capacity of the available support options. Furthermore, an economical design should, implicitly or explicitly, take into consideration the consequences of a rockburst and its impact on worker safety and mine productivity. Stacey (2012) has argued that we have a limited understanding of the mechanisms of rock mass behaviour in seismic conditions. This is compounded by a ‘lack of understanding of the mechanisms of action and interaction of support elements under dynamic loads’ (Stacey, 2012). Consequently, the design of support systems required to manage dynamic loads is usually based on experience. The assessment of the dynamic performance of ground support systems is typically subjected to qualitative (and sometimes subjective) interpretations from ground control personnel."

Jan 1, 2017

By J. A. Voster

Premier Mine (a part of De Beers Consolidated Mines Ltd) which is situated 38 km to the east of Pretoria, has the largest known diamond pipe in South Africa. The mine started operations in1903. The Premier Mine kimberlite pipe is unique in that it is intersected by a 75 m thick gabbro sill at a depth of 400 m below surface. The current mining method used is mechanized panel retreat caving, which has been successfully used to extract ore from the different mining blocks. All caving at Premier Mine is below the sill and failure to exercise good draw control could cause the early ingress of gabbro waste. Draw control at Premier Mine is crucial as it aids in preventing conditions of isolated draw, which results in the early ingress of waste, compaction of the kimberlite and the loss of ore reserves. To assist, an underground vehicle monitoring and control (VMAC) system was installed to enable the effective management of the draw control function. The system has evolved graduallyin collaboration with a local developer. The data accumulated is used to decide the most effectivedraw point loading pattern in order to achieve sound draw control principles. This is achieved as each load can be related back to the draw point of origin. The VMAC data recorded also relates back to specific load-haul-dumps (LHDs), tunnels, ore passes, as well as indications of dates, times and payloads recorded. An interface exists between the VMAC and a draw control linear program. Premier Mine’s VMAC system is not a ‘dispatch’ system but rather a draw control system that caters for Premier Mine’s specific block cave requirements. Premier Mine has realized that successful automation is not dependent on technology alone but rather on the successful implementation thereof.

Sep 1, 2001

1. Recent publications Canadian minerals yearbook 1986. Review and outlook. Mineral Report 35. Available from Printing and Publishing, Supply and Services Canada, Hull, Quebec KIAOS9, Canada. $44.70. The 1987 Sigma cataloge. SI. Louis (USA), Sigma Chemical Co., 1986. 1736 pp. Der Maschinenschaden. Munchen(G. rmany), Koningstrasse 28. Metallurgicalworks in Canada primary iron and steel 1987. Mineral Bulletin MR 214. Available from the above address at $6.60 per copy. Annual report 1986. Oxbridge, International Research Institute, 1987. Canadian iron ore industry statistics, 1986, by B.W. Boyd and A. Cadieux. Publication MRI 87/6. Micromedia Limited (Document Delivery, 165 Hotel de Ville, Place du Portage 2, Hull, Quebec J8X 3X2, Canada). Tin and its uses no. 153. Oxbridge (England), International Tin Research Institute, 1987. This issue includes articles on can-making, titanium-tin alloy, coppernickel2. New journal Pergamon are producing a new journal, entitled Minerals Engineering, which they describe as &apos;an international journal devoted to innovation and developments in mineral processing and extractive metallurgy&apos;. 3. Mintek publications Report M298. The effect of flocculant additions to the leaching solution on the kinetics of the oxidative dissolution of sphalerite, by F.K. Crundwell. Report M304. The smelting of ilmenite in a d.c. transferred-arcplasma furnace with a molten-anode configuration, by AD. Brent. Jut 1987. 17 pp. Report M312. The reactions of some thiol collectors at noble-metal and pyrite electrodes, by D.R. Groot. Jut 1987. 21 pp. Report M321. The determination of molybdenum, arsenic, and uranium in activated carbon by X-rayfluorescence spectrometry,by A.M.E. Balaes and G.J. Wall. Aug. 1987. Report M321. The determination of molybdenum, arsenic, and uranium in activated carbon by X-rayfluorescence pectrometry, by A.M.E. Balaes and G.J. Wall. Aug. 1987.

Jan 1, 1988

By S. C. Essack

"Tenova Pyromet has designed a slag flow control valve that throttles the flow of slag in order to control the tapping rate. In addition, the valve has proved to be a reliable tool for closing the furnace during normal operation as well as emergency conditions. The valve makes use of a water-cooled copper element that is hydraulically operated and attached directly to the slag tap-hole. The equipment is compact, simple to maintain, and cost-effective to purchase and install. It can be retrofitted to most existing slag tapholes with minimal modifications.During the development phase, finite element method (FEM) and computational fluid dynamics (CFD) software was extensively used to model predicted operating conditions and to optimize the design. By using CFD, it was possible to understand the flow patterns inside the copper and to optimize these to improve overall performance.The slag valve was installed and commissioned in 2011/2012 on a 12 MW furnace as part of a new mineral wool plant in the USA. It has performed well since its installation despite operating under conditions in excess of the original design criteria. During the first 6 months of operation it quickly became the preferred method of closing the furnace, although the design intent was for occasional use during emergency shutdown conditions only. Since replacing the mudgun as the main method of closing the tap-hole, a few minor changes have been made to the installation in order to cope with the increased heat load and much higher frequency of use."

Jan 1, 2014

If an orebody has been drilled to achieve some level of regulatory compliance, then a number of associated geological databases will exist, representing 10 000 to 100 000 m plus of core intervals. The databases usually contain data about assays, lithology, mineralisation and geophysical attributes. They will also include location information such as collar positions and downhole surveys. Obviously this data is collected by geologists for, predominantly, geologists and mining engineers. However, from a process design viewpoint process engineers usually ignore the geology where possible and rely on a small number of metallurgical test samples. Typically these test samples are sourced from convenient and available cores or from a small number of specially drilled metallurgical holes. One of the worst instances known to the author was the design of a SAG mill using only two SAG specific test results (one for each of the major ore types) while, geologically, the orebody was defined by more than 30 000 m of drilling. This paper sets out a philosophy to maximise the use of the geological data, both for process design and in preparation for the commissioning phase of projects. Geological data is used in the identification of preferred locations for metallurgical test samples, for checking the metallurgical validity of the geological ore-type definitions, where necessary developing new ore-type definitions (geometallurgical domains) and developing mathematical relationships for the estimation of important metallurgical factors across the geological database. If the estimation of factors (for example ore competence) is considered reliable enough then there is also the possibility of feeding calculated data back into the block modelling process to allow the generation of metallurgically relevant outputs in the mine plans.

Jan 1, 2007

By M. Steyn

Until 2000, pricing involved profit taking and cost covering combined with limited global published information. Market information was mostly subjective in nature and large resource companies benefited exclusively from aggregated company information and data. The market constituted producers and consumers only. The nineties saw massive cost cutting drives and re-engineering initiatives and this underwrote the structural changes evident in the late 1990s? economy. This supported South African producers on the international FOB cash cost curve, and ensured profitable coal mining operations. As the debate on relative scarcity of fossil fuels ensued, producers and buyers looked to the developing terminal coal market for direction. The much needed direction was provided when the API coal indices were developed and derivative trading was embraced to include financial institutions, trading houses and hedge funds. The liquidity of coal trades increased rapidly and vastly and market information became obtainable on a daily basis. Interpretation of current and future coal prices became available to all market players and contributed to the sophistication of the market that is now able to participate in risk management of prices, capital expenditure and brownfield developments.

Jan 1, 2010