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By C. Hutton

"SynopsisThe last commodities supercycle (2003 to 2011) was characterized by a belief in volume at any cost, where absolute output was deliberately prioritized over productivity considerations. This practice fuelled overoptimistic forecasting and planning, which in turn contributed to the economic crisis that followed. The sudden collapse of commodity prices has resulted in mining companies scrambling to find the right balance between optimizing current operations and preserving sufficient flexibility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins, while lower ore grades are inflating production costs. Mining companies therefore need to look at the business with fresh eyes, and develop strategies to attract equity capital as traditional approaches are simply not working anymore. This is especially so in the context of a dwindling investor base that continues to demand greater returns, despite a significantly lower appetite for risk. This paper revisits the micro-economic concepts and demonstrates how pressure from shareholders to prioritize output contributed to spiralling costs and value destruction. Practical techniques are described to model cost curves to optimize a Mineral Resource endowment and address the need to rightbalance a business and preserve agility.IntroductionHenry Lazenby (2014) for the Mining Weekly writes, ‘Bruised and battered, the global mining industry today is undergoing a sea change. Practices and policies that might have worked wonders in the past are not as relevant today, and new approaches to running profitable mining operations need to be found.’ One significant practice the mining industry had during the last commodities supercycle (2003 to 2011) was chasing volume at any cost; absolute output was deliberately prioritized over productivity considerations (Goldsmith, 2013). Lazenby contends that in the face of falling and volatile commodity prices, many mining majors ‘across all commodity groups are currently grappling with sagging profits and low company valuations. This is often regarded as the result of the were in pursuit of growing their output at all costs in a high commodity price environment.’ Lee Hodgkinson, KPMG’s Canadian mining industry leader and quoted by Lazenby, says that ‘mining companies are now trying to find the right balance between optimizing current operations and preserving their agility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins [whilst] lower grades of ore are inflating production costs. Mining companies need to look at the business with fresh eyes, and develop strategies to attract equity capital as it seems clear that some of the traditional approaches to the mining business are simply not working anymore."

Jan 1, 2015

By S. Dessureault

Computer Integrated Mining (CIMG) is a process of using computer networks to transform islands of enabling technologies into a highly interconnected mining system. CIMG involves the integration of advanced technologies at various levels in the mine business to achieve higher flexibility, better quality of processes and control, and improved profitability. Justifying the benefits of CIMG are difficult as many of the advantages are derived from improved flexibility, quality, and control. Justification is based on the evaluation of the benefits to be gained, compared to the required capital investment. Management tools used in mining are currently inadequate in assessing the value of advanced technology whose benefits are primarily qualitative. A key aspect of successful implementation is management acceptance, which has to be won through the capability to justify the technology?s financial costs and the true value of all of its benefits. The manufacturing industry faced similar justification difficulties when adopting advanced technology in factories. A significant amount of funding and research was invested in developing management strategies and approaches to justification. Many of the problems that faced the transformation of the manufacturing industry in the late Eighties and early Nineties are now facing mining. The solutions derived for manufacturing may help mining in its transition to an increased reliance on integration technology. Reviewing the industrial history of computer integrated manufacturing identifies several tools and strategic frameworks that can be adapted for mining. Keywords: Computer integrated mining, justification techniques, CIM, information technology.

Jan 1, 2004

By P.J. Terbrugge

Open pit slope design has conventionally been effected as a bottom-up function utilizing available geotechnical information. This results in a decision criterion based on probability of failure and factor of Safety with a risk assessment being carried out on the proposed design slopes. The design approach recommended reverses the process using fault event tree decision methodology. The consequences of this approach are that acceptable risk criteria have to be determined by mine owners. Slopes are then designed by the technical staff to achieve these corporate goals. Benefits that arise from the process are that the owners take a proactive decision on the risk-benefit relationship allowing the technical staff to optimize the geotechnical exploration programme and design.

Jan 1, 2006

By D. Tesh

The mining industry worldwide is facing a tremendous shortage of minerals engineers in all fields of specialization. For instance, in Australia the skills shortage in the mining industry has been identified as one of the top risks facing the mining industry. In Namibia most minerals engineers employed are expatriates, with some being Namibians who studied abroad. The minerals engineering programmes at the Polytechnic of Namibia are still in their infancy. These programmes were designed to meet the mining industry skills needs. Being young has its advantages in that lessons can be learnt from older minerals education institutions that went through similar challenges. However, this does not imply just copying and implementing their approaches, since the context differs and, to ensure sustainability of the minerals education programmes, curricula have to be customized to the local context. This paper reviews the interventions made by the Polytechnic of Namibia in order to ensure the sustainability of its minerals education programmes. The methodology consisted of an extensive literature review, a status quo analysis of the mining and process engineering department, identifying the gaps between the current state and desired state, and mapping the goals and strategic actions required to progress to the desired state. The following factors were identified as major threats to the sustainability of minerals education at the Polytechnic of Namibia: the quality of students, low student enrolment rates, low pass rates in science and mathematics, shortage of academic staff, dwindling government funding, and limited involvement of the mining industry. The major outcomes of this research comprise the detailed strategic actions employed by the Polytechnic of Namibia to address the threats to sustainability of its minerals education programmes.

Jan 1, 2014

By J. Härkki, R. Hiltunen

The Akanvaara intrusion (surface area 50-55 km2) in Savukoski, Northern Finland, hosts 23 distinct monocumulate layers of small euhedral chromite crystals enclosed in a silicate matrix. These chromitite layers have been divided into four groups; UC (upper chromitite), ULC (uppermost lower chromitite) LC (lower chromitite) and LLC (lowermost lower chromitite). The driving force for investigating the Akanvaara chromites and their reduction behaviour originated from their very low MgO content and relatively low Al2O3 content, giving them a unique quality which based on thermodynamics should facilitate the reduction. Another interesting feature is the high amount of V2O3 present especially in the upper chromitite. The chromites included in this study are from the UC and ULC layers (24.9 and 22.7 per cent Cr2O3 respectively). To obtain a better understanding of the reduction behaviour of Akanvaara samples in comparison to MgO-bearing chromitites, Kemi chromite from the ferrochrome works in Tornio, Finland, was included in the study as a reference sample. The reduction experiments were isothermal in a temperature range of 1000-1400°C in CO atmosphere. Experiments were also conducted with coke addition in pellets and briquettes in CO/Ar/H2 atmospheres. The results of the reduction experiments complemented with microanalytical research indicate that the Akanvaara chromites do reduce to a higher degree than the Kemi chromite. Although the aim was to characterize the mechanisms of reduction focusing on gas-solid reactions, the nature and amount of the gangue minerals was such that a considerable amount of slag phase was formed, which affected the reduction mechanisms extensively. The structural features together with low MgO and high FeO content in both Akanvaara chromites are important factors resulting in better reducibility than in the Kemi chromite.

Jan 1, 2004

By F. N. F. le Roux

This paper describes the method used for excavating the upper 33m of emergency access shaft E2 for the underground single track tunnel running between Park and Rosebank station of the Gautrain Rapid Rail System. The soil was decomposed shale and diabase from the Witwatersrand Supergroup. The location was in the car park of The Wilds (a public park) in Johannesburg. The method proved very simple and required less complex plant and equipment than normal when excavating the shallow soil sections in shafts. It involves driving steel sheets ahead of the shaft sump into the soils and then excavating inside the ?tub? created by the sheets whilst supporting the sheets above with regularly spaced circular Steel Rings. It is the intent of this paper to discuss the method and design approach to the method. This will be done at the hand of experiences at E2 shaft..

Jan 1, 2009

By H. Simonsen

Risk assessment consists of a search for the answers to: ?What can happen? ?How likely it is that it can happen? ?What are the consequences if it does happen? Perhaps the most important aim of risk analysis is to predict the likelihood that a planned profit will be achieved over a given period of time. A typical risk model employed for this purpose includes a stochastic connection between the dependent variable of an expression that describes a process and independent variables represented as random quantities. The output will be a probabilistic distribution. The uncertainties in a planned mining operation include: ?Commodity market characteristics, particularly price ?Ore reserves and mineralogical composition ?Mining method ?Process performance ?Capital and operating costs ?Schedule duration ?Economic environment effects. The processes employed in the probabilistic estimation of a project?s outcome include both Monte Carlo simulations and simulations where variable correlation is considered important. The risk model, once developed and tested, provides a framework for a rational approach to risk analysis and the testing of alternatives.

Jan 1, 1999

Milling circuits are known to be difficult to control. In order to address these difficulties, it was decided to develop and test a model predictive controller (MPC) for a milling circuit. A milling simulator was written using Microsoft Visual C++ and used to design and test the MPC controller. Due to the large number of tuning parameters in a controller of this type, an optimizing algorithm was written that automatically tunes the controller. Good, robust control was obtained when the controller was tuned using this algorithm. Control was further improved by combining feedback and feed forward control and by using quadratic programming in the MPC algorithm. The movement of the manipulated variables was reduced by using a novel technique that allows the controlled variable to vary within a specified region around the set point. An optimiser controller was also successfully implemented to control the circuit at its maximum throughput.

Jan 1, 2000

By A. Swanson

The Australian coal industry has been subdued in recent years and only a few new plants have been constructed, but the drive for greater efficiency has seen continued technological developments. The paper lists the new plants and major upgrades, plus summarizes technical developments in the areas of dense medium processing, fine coal treatment, froth flotation, dewatering and on-line analysers.

Jan 1, 2001

The major proportion of South African coal is extracted by the bord-and-pillar mining method which requires that the overlying strata be supported by pillars of coal. The stability of the pillars is a major safety concern. One of the factors which affects the strength of coal pillars is the intensity and nature of discontinuities in the coal seams. Current design methods for pillars assume that al the coal seams have equal strength and are equally disturbed by natural discontinuities, resulting in over-designed pillars in some cases and potentially unstable pillars in others. Research was carried out to determine the nature of discontinuities in coal seams and to assess their potential effect on pillar strength. It was found that large variations exist in the intensity of discontinuities in the different coal seams being mined. In addition, numerical model studies showed that the discontinuities could significantly reduce pillar strength if the width-to-height ratio of the pillars is small, but the effect decreases as the width-to-height ratio increases.

Jan 1, 1997

By D. A. Bruce

The paper describes the construction of 5 plugs to resist high water heads at depth within the South Deep Gold Mine, Randfontein, South Africa. A total of 20 segments were involved to create these plugs, which were 7.5 m long at the 58 Level and 6.25 m long at the50 Level. Emphasis is placed on the QA/QC and verification methods, which were developed and governed all phases of the work, from initial rock preparation and pregrouting through to the final grout tightening of the rock/plug interface and the surrounding rock. This paper is one in a series of papers detailing other aspects of the project, which was constructed largely between May 2001 and August 2003.

Jan 1, 2006

By R. E. Robinson

A novel variation of the GYPCIX process for the treatment of the acid mine effluent water from Grootvlei is described, in which a number of valuable by products can be obtained and the product water can be used for a variety of different purposes. A conceptual case study is presented in which the important cost parameters are described and certain critical path activities are indicated in order to derive a Return on Investment evaluation according to methods previously published. The study indicates that the treatment costs can be dramatically reduced, provided that proper utilization of the by products is taken into account. There are many possible uses for the water. However, by far the most advantageous contribution to the RDP and the best return on capital is derived if the water is used to establish small-lot farming activities providing work opportunities for thousands of people and contributing several hundred million Rands to the GDP. Vastly improved social conditions will be generated in an area of Gauteng that is in danger of rapid deterioration and a contribution will be made to maintaining mining activities in this area. The environmental impact is positive.

Jan 1, 1998

By D. J. Greeff

By making use of genetic programming, empirical models for metallurgical processes can be evolved that are more cost-effective than models determined by means of classical statistical techniques. These methods explore populations of candidate models assembled from sets of variables, parameters and simple mathematical operators, and do not require explicit specification of model structures. The application of the proposed strategies is illustrated by means of a case study pertaining to the leaching of nickeliferous chromite ores. Modelling of the nickel and cobalt extraction from the ores yielded models of similar accuracy compared to those obtained by non-linear regression and artificial neural networks. However, in the case of the iron extraction from the ores, the genetic programming model was significantly more accurate than both the regression and neutral network models.

Jan 1, 1998

By J. Drzewiecki, J. Kabiesz

Coal mining using longwall methods of mining can lead to intense disturbances of undermined roof strata. The disturbances may extend beyond the extraction area and the resulted rock mass deformations will appear differentiated. In the case of stiff and undermined roof strata, the energy stored in these rock masses may be frequently dissipated in the form of high-energy seismic tremors. Such events can occur if these strata should fail or „free themselves” either from the constrainment of rock environment or from adjacent strata. It has also been found that the amount of the stored energy closely depends on the size and/or slenderness of these strata. Thus, it would be possible to apply specific preventive measures to reduce the energy of mining – induced seismic tremors. The methods are based on artificial disintegration of the structure of energy – storing strata. One of the most efficient methods is a method of directional hydraulic fracturing, which is regarded as an alternative solution from the traditional blasting and hydraulic methods.

Jan 1, 2003

By A. B. Fox, R. P. Thackray, K. C. Mills

The role of mould fluxes in continuous casting is reviewed. The main functions of the flux are described and the importance of the flux in providing lubrication and the right level of heat transfer between the shell and the mould is described. The major problems of longitudinal, transverse and star cracking, gas and slag entrapment and deep oscillation marks in the steel product and ?sticker breakouts? are analysed. The important physical properties of the flux in combating these various problems are identified. Physical property data for the fluxes are given.

Jan 1, 2004

By S. A. Scott

Mintek developed the MinataurTM leach-solvent extraction-precipitation technology as a cost effective, easily operated alternative to conventional gold refining processes. The technology was first commercialized at the Harmony Gold Refinery in 1997 to produce 99.99 per cent gold product and has subsequently led to development of various value-addition steps including the casting of various investment bars, gold wire drawing and gold potassium cyanide powder production. In addition to refining gold to high purity, if an appreciable amount of silver is present in the feed material it is also refined to 99.99 per cent purity. The major advantage that the Minataur? technology has over other gold refining processes is the relatively low gold lock-up and reduced operating costs. The operating cost1as at April 2001 for the expanded Harmony refinery (24-ton per annum gold production) was approximately half that of conventional smelting and toll refining. The extractant employed for solvent extraction is relatively cheap and highly selective for gold, making the technology attractive in situations where significant quantities of platinum group metals or base metals are present.

Jan 1, 2004

By A. Bhattacherjee

The Shewhart [X]?and R charts are still the most popular control charts in use today for continuous monitoring of quality data. However, for these charts to function properly, the underlying assumption of normality and independence of data must be satisfied. When either independence and/or normality of data are not present, which is a common feature of ore quality data, an application of the conventional Shewhart [X]?and R charts may introduce false alarms in the analysis of the data. To address these issues, a guideline is proposed for construction of appropriate univariate and multivariate control charts for a variety of situations. A use of this guideline to a bauxite mine suggested the construction of special cause control chart for the analysis of individual variables namely, Al2O3% and SiO2%; whereas, the multivariate T2 chart based on residuals is proposed for the bivariate analysis of the variables. The case study clearly revealed that without considering the data correlation, one may be in a state of false impression about an out of control condition while using the Shewhart [X]?and R charts for univariate and the Hotelling T2chart for multivariate analysis. To compare the effectiveness of the control charts, specifically the Shewhart [X]?and the special cause control charts, a simulation study was conducted. It was found that the conventional Shewhart chart provided lower probability of coverage than the special cause control chart. It was also revealed that the quality specification of Al2O3% is met as the variation of Al2O3% is well within the specification limits; whereas, it is difficult to meet the quality specification of SiO2% on a regular basis.

Jan 1, 2002

By S. Sridhar, R. E. Aune, M. Hayashi

Thermophysical properties of silicate melts are strongly structure dependent. It is well known that the viscosities of slags increase with increasing the degree of polymerization of silicate anions. Even the thermodynamic properties of slags are dependent on the types of species and the population of the same in the melt. Thus, a link between the thermophysical and thermochemical properties of silicate melts is logically expected. The present paper elucidates the salient features of Darken?s excess stability approach to the Gibbs energies of solutions as applied to the viscosities of silicate melts. It is demonstrated, that the second derivatives of the viscosities of binary silicate melts with respect to composition indicate a maxima corresponding to the existence of stable compounds in these systems. The concept was successfully applied to the following systems: Al2O3-SiO2, CaO-SiO2, FeO-SiO2, MgO-SiO2and MnO-SiO2. In all the cases, the second derivative plots of viscosities with respect to composition showed peaks corresponding to the metasilicates. The second derivatives of the activation energies of viscous flow with respect to temperature has earlier been shown to reflect the formation of associates/embryos in the homogeneous silicate melts, indicating the readiness of the melt to separate a solid phase. Thermodynamic coupling of thermal diffusivities in the case of the system CaO-Al2O3-SiO2from the laser-flash measurements of these slags as a function of temperature are examined as part of the present study. Densities are estimated from integral molar enthalpies in the case of silicate systems and the results are presented. Keywords: silicate melts, viscosity; activation energy, thermal diffusivity; density

Jan 1, 2004

By L. P. Lamprecht

Traditionally, South African shaft sinking operations have used electric detonators for the initiation of blastholes. Globally, the trend in shaft sinking is to use the shock tube and detonating cord (STDC) initiation system, with value adding benefits. In pursuing this global trend, Cementation Mining of South Africa in partnership with SMX have ventured the STDC route. This paper explores the work carried out to date, and identifies a number of benefits to be gained by using the system.

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