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A new system for granting access to mineral rights is proposed in the recently released White Paper, ?A Minerals and Mining Policy for South Africa?. Official policy states that ?Government?s long-term objective is for all mineral rights to vest in the State for the benefit of and on behalf of all the people of South Africa?. In order to achieve this objective, government is presently investigating the feasibility of imposing a financial or tax-related disincentive to holding mineral rights. The paper aims to present the pros and cons and to examine the alternatives which will cause minimal disruption to the minerals industry in the period during which mineral rights are transferred to the State. South Africa is a country whose economic and political history is embedded in the development of its mineral resources and has inherited a system which cannot simply be wished away. Hasty or radical decisions will compound the problem, rather than provide a lasting and widely acceptable solution. Mineral rights ownership and its impact on access to mineral deposits are discussed. Taxation as a possible economic disincentive is also evaluated. Finally, the value of mineral resource related information as a prerequisite to mineral policy decisions and as an alternative to mineral rights taxation is emphasized.

Jan 1, 1999

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

By B. Kenny

The aim of this paper is to provide an overview of existing forms of subcontracting in the South African mining industry. A descriptive framework is developed to understand different subcontracting arrangements. We argue that, in order to do so, it is important to distinguish between labour broking and gang subcontracting. Data resulting from a research project (including an analysis of historical sources, interviews with contractors and focus group interviews with mineworkers) is presented to highlight the implications of changing formations of subcontracting for the South African mining industry in the late 1990s. Apart from the subcontracting of ?traditional? functions, such as shaft sinking, access development, catering and hostel maintenance, contractors are now used in ?core? mining activities. In some instances, whole shafts are ?outsourced? to outside agencies. It is argued that certain of the subcontracting arrangements have serious implications for the ability of the mining industry to improve health and safety standards. Some of the practices can potentially result in conflict between different categories of workers, and, as a result, instability in the industry.

Jan 1, 1999

By D. Pillay

Outsourcing? and ?sub-contracting? have become buzzwords in recent years, as SA industry becomes increasingly exposed to the global economy, and global competitiveness. In its effort to ?catch up? after years of relative isolation, there is a concerted effort to learn from global ?best practice?, in order for South African companies, and the SA economy, to become ?winners?. There seems nothing wrong with this approach at face value. Companies need to compete and be profitable if they are to remain in business. Failure will in the end mean bankruptcy, and the loss of jobs. However, if one interrogates the precise practices, and their implications for all concerned?not just shareholders and employers, but workers, communities, the environment, future generations, the national economy?then the picture can change dramatically. ?Best practice? for whom?

Jan 1, 1999

By A. A. Smithen

There is an increasing awareness of the importance of including an assessment of environmental liabilities in the preparation of bankable feasibility documents. This means that environmental assessments of proposed, existing and decommissioned mine sites have to be undertaken for the purposes of quantifying environmental liabilities and assessing potential risks. This paper examines the need for considering environmental liabilities before describing the approach adopted in undertaking due diligence studies for the preparation of bankable feasibility documents and some of the difficulties experienced. Finally, some concluding remarks are made and the implications for the mining industry are discussed.

Jan 1, 1999

By M. H. Rogers

Coal has been at the forefront of mankind?s drive to improve his quality of life and also for sustainable development, from the Industrial Revolution onwards. The international coal industry today is large, with some 3,7 billion tons being produced and consumed in 1997. South Africa is an important participant in the coal industry, selling some 220 million tons in 1997 of which 64 million tons were exported. It is the second-largest thermal coal exporting country in the world. Despite the size of the world coal industry, it is not immune to change. The address examines growth projections for the industry and the change drivers that will impact on it in the future. Environmental pressures, the most important of which being the climate change debate, the Kyoto Protocol arising from this debate and the development of clean coal technologies, to reduce the impact of coal production and usage on the environment are considered. Other major change drivers considered are competition from other sources of energy and that between coal producers, the deregulation of the electric power industry, corporate restructuring and for the South African producer, legislative reform. The declining (real term) coal price, the consequent squeeze on margins and the need for producers to actively contain costs is covered. Technology has, in the past, been the driver behind the growth and change of the South African coal industry and its future role in ensuring that coal is the fuel of choice for continued improvement in standards of living and economic development is addressed.

Jan 1, 1999

Direct reduced iron (DRI), produced by the reaction between iron ore and reducing gasses, is used as a source of low-residual iron, in addition to ferrous scrap and pig iron, in the production of steel mainly through the electric arc furnace (EAF) route of steelmaking. The main DRI technologies in use are those of Midrex and Hyl, but in recent years a myriad of newer processes emerged based on variations in feedstock, reducing agent and fuel sources. Since the beginning of the nineties, DRI has increasingly emerged as a cheaper, low-residual iron feedstock for EAFs, which have traditionally relied almost entirely on ferrous scrap feed. The main stimulus behind the interest in DRI has been the increasing popularity of the EAF and the ?mini-mill? set-up as the favoured steelmaking option compared to the traditional and much less flexible blast furnace/ basic oxygen converter. This, however, has been creating a problem with regard to availability of low-residual scrap, resulting in upward pressure on high quality scrap prices and leaving DRI, traditionally the ?expensive alternative?, as a much more competitive consideration. The second main determinant has been the increasing production efficiency of existing steel plants which, in the light of improvements such as continuous casting and near net shape casting, has been constraining the supply of low-residual domestic scrap, traditionally the prime source of EAF feed. The explosion of current and proposed DRI projects has been accentuating the mounting interest of global role-players in assuring the availability of reliable sources of low-residual iron units for the future, especially in cases where definitive competitive advantages exist with regard to proximity to primary sources of iron ore and fuel (gas or coal).

Jan 1, 1999

By A. H. Mokken

Failed attempts at amalgamation of a gold/osmiridium concentrate, recovered behind pebble mill liners during re-lining, led to the discovery that the gold particles were coated and that nitric acid only could remove the coatings. Following this treatment amalgamation was rapid and resulted in a complete recovery of the gold that otherwise would have been lost in plant residues. Investigations into the nature and formation of the coatings led to the realization that the coatings were impregnations of harder elements, associated with the gold during grinding and driven into the softer gold surface by high pressure, impact and attrition. It was further realized that this phenomenon could be part of gold ore milling, world-wide. With these thoughts in mind the question is asked whether concentration down to micron sizes prior to cyanidation, should not play a greater role in gold recovery.

Jan 1, 1999

By B. Unver

Effective strata control is a prerequisite for maintaining an efficient mining operation. If the strata in the vicinity of an opening are not controlled effectively, it is impossible to perform a safe, efficient and economical operation. In this paper, the reasons and outcome of instability problems observed in roadways opened in clay and marl at the Bolu Colliery of Yeni Çeltek Establishment are investigated. Roadways under examination were located in a syncline causing high residual tectonic stresses. Factors affecting the instability have been studied thoroughly by examining geology and tectonics of the area, establishing convergence measuring stations to understand in situ behaviour of supports and laboratory tests to determine engineering properties of samples taken from nearby convergence measurement stations. As a conclusion, a new production strategy and a new support system are recommended to maintain stability.

Jan 1, 1999

By R. Pickering

The purpose of this paper is to explore the application of technology to stoping systems. Technology, because for the past 100 years the South African narrow reef mining industry has battled to control working costs in a labour-intensive industry. Stoping systems, because it is the stoping method and methodology which is at the heart of the mining system. Introduce a more efficient stoping system and the mining system will look after itself. The technology applied to stoping over the past 100 years can be categorized as follows: ?The introduction of pneumatic rockdrills early this century, the cumbersome rig mounted units being replaced by smaller, lighter hand-held units which were then made easier to use with the addition of an air leg ?Scraper winches to replace gravity and shovels to move rock both in the face and the gullies were first introduced in the late 1920s ?Hydraulic props as a support method arrived in the1960s ?Some people argue that tungsten carbide inserts were equally important. There have been a number of attempts to introduce different technologies into stoping, the most recent being trackless equipment. Where the stoping layout suits the technology it has been successful. There have been too many instances where a technology has been installed because it is fashionable. At the end of the day the outcome from change in the stoping systems has to be safer and more profitable mining systems. It is the contention of the author that change is only likely to be effective if it is supported by the introduction and application of appropriate technology.

Jan 1, 1999

By M. A. van Nierop

The Discrete Element Method (DEM) is a model that is used to simulate the motion of the media in a grinding mill. The sum of the energy that is lost in inter-media and media-wall collisions represents the power drawn by the mill. The fact that the DEM predicts the power drawn by grinding mills over a large range of diameters has been used to show the validity of the DEM. However, the power drawn by a mill is a function only of the sum of forces of the load on the shell liners. A more accurate and detailed validation of the DEM would be to measure these forces as a function of angular position as the liner moves under the load, and to compare these measurements with predictions generated using the DEM. An experimental mill has been developed to reproduce exactly what the 2-dimensional DEM simulates. The 0,55 m diameter mill has a length of 0,023 m, which is fractionally larger than the diameter of the media used in the mill. One of the lifters in the mill has been instrumented so that the forces on the lifter can be measured as the mill rotates. The DEM simulation will be used to predict these forces. This will give experimental evidence of the validity of the DEM for modelling load behaviour in rotating grinding mills.

Jan 1, 1999

By J. A. Cox

The Ashanti mine is located within the Lower Proterozoic Birimian of Ghana, and covers a concession of 474 square kilometres at its Obuasi operations which comprise large scale underground, surface and tailings treatment facilities. The mine had operated for a century at the end of 1997 and had produced nearly 25 million ounces of gold, a significant proportion of which came from the underground operations. This paper covers the strategy under which exploration for both surface and underground mineral resources was instrumental in enabling the expansion programme to go ahead together with the methodologies and results that have developed in the exploration area over the last five years. Within capital expenditure constraints, the objective on surface is to replace oxide depletion with a secondary objective of discovering new sulphides in areas other than the main trend. In the underground, the exploration strategy is directed at replacement of both underground and surface sulphide depletion, minimising finding costs and assisting the development of long lead time infrastructure. The exploration application describes the methodologies in use for both surface and underground exploration that have been developed in recent years in conjunction with a description of a major review conducted in 1995/96 of the exploration database using an integrated approach, geochemistry, geophysics, remote sensing and structural geology. A revisit of soil geochemical data in particular, and modification of exploration methodology led to the success in finding relatively significant new oxides in 1997.

Jan 1, 1999

By C. Dixon

This paper is based on the assumption of some knowledge of the National Water Act. It will consider the question of how that Act fits in with: a) existing laws which overlap on the subject matter b) new laws either in draft or in the process of being compiled c) policies which will eventually find their provisions included in new legislation (e.g. minerals policy) d) international practices. The focus will be specifically on the interaction of legislation relating to water use and water pollution in the mining sector as well as the role of the Department of Water Affairs in mining matters. Hence the title of the presentation.

Jan 1, 1999

By W. J. Schlitt

The Namibian Copper Joint Venture has been formed to undertake development of the Haib copper deposit, one of the largest undeveloped copper resources in Africa. The development programme includes extensive hydrometallurgical testwork that is being managed by Kvaerner Metals (formerly Davy International).Various parts of the programme have been contracted to four third-party laboratories. The testwork involves sample selection and characterization, amenability tests, and a parametric study on the leaching variables. All portions of the programme are described and the results a represented. The ores selected for testing are quartz feldspar porphyries. The amenability tests include ?mapping? studies to assess optimum leach conditions, tests at high oxidation potentials, oxidation with various bacterial strains, and heap leach modelling. The parametric programme includes such variables as ore grade, leach temperature, crush size, pH, and ferric iron content of the lixiviant. Testing was done on both whole ore and concentrate. Results show that bacterial leaching is effective and that ore grade and temperature are key variables. Crush size and pH have less impact on copper extraction. For mid-grade ore, about 0.25 per cent copper, extraction is projected to reach 50 per cent after two years when heap leaching tertiary crushed ore at 60°C and pH 1.5. The heap leach operation would fit well with the proposed roast-leach operation used to treat higher grade ores. The latter could supply the low cost heat and acid needed in the heap leach.

Jan 1, 1999

By J. F. Curtis

In the synopsis, the author concludes that ?high levels of seismicity do not coincide with high rockburst rates?. Implicit to an appreciation of this statement is the necessity of a common understanding of what is understood by the terms: ?high level of seismicity? and ?high rockburst rates?. With respect to the former term there is no difficulty in that the level of seismicity is traditionally measured in terms of the Richter Scale. The latter term however presents a problem in that the author defines it as a particular sort of seismic event?viz: ?Rockburst? is understood as a seismic event that causes damage to an underground excavation with subsequent injury, loss of material/equipment or production shifts? (p. 322). No scale is given of the amount of: ?excavation damage ?level of injury ?material/equipment loss ?production shifts lost whether separate or cumulative, for a particular seismic event to be classified as a rockburst. A further difficulty arises in that in common usage the words ?rockburst?, ?seismic event? and ?earthquake? are all used to describe the same event.

Jan 1, 1999

By J. Engelbrecht

South Africa?s re-entry into the fast moving and competitive global economy calls for some careful strategic planning and a good deal of co-operation between suppliers and end-users. The issues that need addressing are generally well known and include: ?South Africa was ranked 45th out of 46 i.r.o. productivity ?SMMEs contribute 1% to exports compared to 40-60% for the ?tigers? ?High unemployment ?Limited skills of the majority of workers ?Slow growth rate of the economy ?The vast majority of suppliers are not world-class ?The vast majority of suppliers are not export or marketing orientated. In order to survive, all parties, i.e. government, labour and business, will have to play their part.

Jan 1, 1999

To the members of The South African Institute of Mining and Metallurgy We have audited the annual financial statements set out on pages 269 to 276. These financial statements are the responsibility of the Institute?s Council. Our responsibility is to report on these financial statements. We have conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance that, in all material respects, fair presentation is achieved in the financial statements. The audit included an evaluation of the appropriateness of the accounting policies, an examination, on a test basis, of evidence that supports the amounts and disclosures included in the financial statements, an assessment of the reasonableness of significant estimates, and a consideration of the appropriateness of the overall financial statement presentation. We consider that our auditing procedures were appropriate in the circumstances to enable us to express our opinion presented here. In our opinion these financial statements fairly present the financial position of the Institute at 30th June, 1999, and the results of its operations for the year then ended in conformity with generally accepted accounting practice.

Jan 1, 1999

By S. M. Bradshaw

The principles of microwave heating are discussed with reference to dielectric properties, heating phenomena and microwave equipment. Microwave regeneration of granular activated carbon for the carbon-in-pulp process is examined on a laboratory scale, with special attention being given to highlight the problem areas and specific considerations related to microwave heating. Results indicate that microwave regeneration of carbon with 40% moisture on a wet basis by heating to 650°C with steam addition regenerates the carbon to virgin carbon activity levels but with a higher abrasion resistance. A preliminary economic assessment showed that the capital cost for 120 kg/h microwave unit would be R540 000 with an annual operating cost of R 320/t carbon. These figures yield a return on investment of 12%. The aim of this paper is to provide an introduction to microwave heating and to illustrate its application to the microwave regeneration of granular activated carbon for the carbon-in-pulp (CIP) process.

Jan 1, 1998

By S. Kwon

When an underground excavation is created near to an instrumented measuring location, deformation at the location increases. The characteristics of this deformation increase, as well as the duration of the influence caused by the adjacent excavation, is dependent on parameters such as opening geometry and measuring location. In this study, neural networks were applied to investigate the deformation increase and the influence of each parameter on the deformation change derived from extensometer measurements at the Waste Isolation Pilot Plant (WIPP) site in New Mexico, USA.

Jan 1, 1998

By W. de Beer

We present aspects of one of several ongoing case studies used in the development of prediction techniques for major seismic instabilities. The current investigation centres on accelerated coseismic deformation described by the kinematics of failure and on softening, as well as the characterization of areas of interest by measures of the seismic response at such sites.

Jan 1, 1998