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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By V. Arslan

In this study, effects of the inert constituents, such as ash, and the effect of blending coals with differing rank and composition on the plasticity of coal blends were investigated. The reference coal originated from the Zonguldak region, in the north-west part of Turkey. Firstly, the effect of coal ash on the plasticity of Zonguldak coal was determined. Secondly, the relationship between the plastic properties of the individual coals and those of the blended coals were identified. Some important relations were found, related to the characteristics of the individual coals. Ultimately, the manner in which the plasticity of Zonguldak coal was affected by blending with low volatile coals was investigated. Keywords: coal blending, coal plasticity, coke, fluidity, rank.

Jan 1, 2006

NIM reports Report No. 1615 Fluorspar pellets. A survey of the world market and an assessment of future South African production. Report No. 1621 Correction for matrix effects in the analysis of solutions by X-ray-fiuorescence spectrometry. Notices Questionnaire on Technicians The Department of National Education's committee of enquiry into the education, training, utilization, and status of engineering technicians in the Republic of South Africa was established as a result of Resolution 6.3 taken at the Sixth Conference on Engineering Education: The Education and Training of Engineering Technicians. Vraelys oor Tegnici Die Departement van Nasionale Opvoeding se komitee wat ondersoek instel na die opleiding, gebruik en status van ingenieurstegnici in die Republiek van Suid-Afrika is gestig as gevolg van Besluit 6.3 wat geneem is tydens die Sesde Konferensie oor Ingenieursopleiding: Die Opleiding van Ingenieurstegnici. Competition for Student Members of the South African Institute of Mining and Metallurgy Each year the Institute offers a prize (or prizes should the entries warrant it) of up to R100 for the best paper or dissertation on a topic appropriate to the interests of the Institute. The competition is open to all Student Members of the Institute.

Jan 8, 1974

By J. M. Sabio, A. W. Stalberg

Keywords: Pyrometallurgy, furnace, calcium carbide, acetylene, Newcastle The manufacture of calcium carbide in Newcastle, South Africa, was started in the late 1950s by a company called South African Carbide, at the Ballengeich site. In 1978, this operation was bought by the forerunner to the present AECI Ltd, a large producer of commodity chemicals at the time. Production continued at this site until 1992. In the meantime, Karbochem, an operating division of Sentrachem Ltd, was also manufacturing carbide in Newcastle, as a building block for the manufacture of synthetic rubber. In 1990, the Karbochem calcium carbide operation was closed down. In 1992, the AECI carbide business and the Karbochem production facility were amalgamated, and production continued under the Karbochem name. In 1997, the Dow Chemical Company bought the holding company of Karbochem, and the carbide business continued operations until 2003. In June 2003, the business was sold to a management consortium as SA Calcium Carbide (Pty) Ltd. Later, in October 2004, 100% of the shares were acquired by the Andina Group. Today, the Andina Group, consisting of SACC from South Africa, CIL from UK, and ANDINA from Argentina, has become a global leader in the manufacture and supply of calcium carbide and calcium silicon, ferro silicon 75% and derivatives, recarburizers with low nitrogen content, acetylene, carbon black, micro-silica, and silicon metal. The production facilities at Newcastle comprise a 52 MVA submerged arc furnace of a closed design, carbon monoxide gas recovery, recovery of fine raw materials via a hollow electrode system, and an extensive computer-controlled process. These all enable an efficient state-of-the-art operation. The downstream processing facilities consist of screening and drumming facilities, milling facilities, an acetylene generation plant, and an acetylene carbon black plant. Clearly, SA Calcium Carbide (Pty) Ltd has a long history of supplying quality calcium carbide to the industries that it proudly serves.

Jan 1, 2006

With the passing of Dr William Bleloch on 20th June 1991, we lost not only a colleague and a good friend but a man who made a very significant contribution to the industrial development of South Africa. He can rightly be called the father of the ekctrochemical and electro-metallurgical industries in this country, since his ideas and dedicated work were directly responsible for the development of these large industries as we know them today.

Jan 1, 1991

By T. Z. Mugodi, D. R. Fleming

Information and Communications Technology (ICT) is defined as ‘The goods and services that support the electronic display, processing, storage and transmission of information’. Early in 2002 the South African Department of Trade and Industry (DTI) commissioned a study into the diffusion and adoption of ICT in eight sectors of the economy. The platinum mining Sector was one of these. The key findings presented in this paper are based on the platinum sector component of that study. The paper examines the theoretical basis behind technology transfer and innovation diffusion and presents the results of an ICT diffusion survey carried out in the South African platinum mining sector. ICT is shown as the modern day technological tool which is an accelerator of economic development. The current state of ICT diffusion in the platinum mining sector is defined and projections for the near future are given. Recommendations which will ensure smooth and full adoption are presented and justified.

Jan 1, 2003

By L. Robles-Stefoni

"Multiple-point simulation (MPS) methods have been developed over the last decade as a means of reproducing complex geological patterns while generating stochastic simulations. Some geological spatial configurations are complex, such as the spatial geometries and patterns of diamondbearing kimberlite pipes and their internal facies controlling diamond quality and distribution.Two MPS methods were tested for modelling the geology of a diamond pipe located at the Ekati mine, NT, Canada. These are the single normal equation simulation algorithm SNESIM, which captures different patterns from a training image (TI), and the filter simulation algorithm FILTERSIM, which classifies the patterns founded on the TI. Both methods were tested in the stochastic simulation of a four-category geology model: crater, diatreme, xenoliths, and host rock. Soft information about the location of host rock was also used. The validation of the simulation results shows a reasonable reproduction of the geometry and data proportions for all geological units considered; the validation of spatial statistics, however, shows that although simulated realizations from both methods reasonably reproduce the fourth-order spatial statistics of the TI, they do not reproduce well the same spatial statistics of the available data (when this differs from the TI). An interesting observation is that SNESIM better imitated the shape of the pipe, while FILTERSIM yielded a better reproduction of the xenolith bodies. IntroductionThe simulation of geological units poses several technical problems that challenge the capabilities of available geostatistical simulation approaches and their ability to deal with spatial complexity of categorical variables. The spatial geometry of diamondbearing pipes and their internal facies controlling diamond distributions are a specific and well-known difficult modelling problem. The geometry of a kimberlite pipe is typically like an inverted cone (Figure 1); the wider part is known as the crater and is located near the surface, and the narrower, deeper part is known as the diatreme. Xenolith bodies can also be found inside the pipe. A very important contribution to the geological modelling of the contours of the pipe is the measure of uncertainty about the location of the contact between the kimberlite pipe and the host rock."

Jan 1, 2016

By H. Immink

Keywords: Kyoto Protocol, carbon credits, global warming, energy, auditing Climate change is nowadays being taken increasingly seriously, and the link between global warming and the carbon dioxide released in the generation of energy is coming under increasing scrutiny. The Kyoto Protocol was signed in 1997, after five years of negotiation. So far, about 84 countries have ratified this agreement, under which terms developed countries have strict targets linked to their 1990 level of emissions. However, ?greenhouse gas? (such as carbon dioxide) emissions continue to rise alarmingly. According to the World Resources Institute, greenhouse gas emissions in the USA increased 13% from 1990-2002, while Australia recorded a 22% increase. In contrast, the European Union, a Kyoto signatory, has seen a small decline in its emissions during the same period. This is led by the UK and Germany, who reduced their emissions by 15% and 19% respectively. The concept of ?carbon credits? provides a funding mechanism for companies in the developed world to compensate for some of their CO2 emissions by paying companies (trading credits) elsewhere in the world to undertake projects to bring about reductions in emissions. In the southern African mining industry, it will be possible to get refunded for undertaking voluntary emission-reduction projects. Concern about the environment is creating business opportunities. A preliminary calculation has shown that various projects in South Africa (those in the pipeline, with quite a high likelihood of coming off) could earn a combined total of about R2.5-billion, under the initial phase of the Kyoto Protocol's carbon-credit scheme, which allows developed-country companies to trade credits with developing countries. A number of local companies are planning projects that could comply with the Clean Development Mechanism (CDM), in which they will implement techniques to achieve certified emission reductions (CERs) of greenhouse gases. In order to prevent abuse of such a system involving vast sums of money, vigorous audits need to be carried out. A company has to prove it has made real changes and is not simply conducting business as usual under a cloak of claimed environmental improvements. PricewaterhouseCoopers has applied to become one of only a few international agencies that will be accredited to conduct validation and verification of the credits, by auditing what is called the ?designated operational entity?. An independent validator needs to confirm that the project meets the strict requirements of the Kyoto Protocol. The company has to demonstrate that it?s not business as usual. So, if you refurbished every five years, the next refurbishment is not a good CDM project, unless you can demonstrate that you will do something beyond the maintenance - that is what can be registered. So, Kyoto intends to get additional projects going, and the money for that is actually quite good - prices of 14 euros per ton of carbon dioxide not emitted have been seen. The price depends on who takes the risk for non-delivery if a project doesn?t deliver the emission reductions on time. The highly energy-intensive South African mining industry is heavily dependent on coal. There should be many opportunities for the pyrometallurgical industry to come up with creative ideas to reduce emissions, and there is now an additional financial incentive to encourage this. Companies can actually get money in return for doing these types of projects, in addition to the contribution to corporate social responsibility.

Jan 1, 2006

By R. J. Durrheim

The seismicity of the Witwatersrand Basin and Bushveld Complex has been analysed, revealing significant differences in source and damage mechanisms. A comparison of mining taking place at similar depths and extraction ratios indicates that the seismic energy release rate is considerably lower in the Bushveld Complex. Technologies introduced in the past decade to manage the risk of rockbursting are reviewed and assessed. These include geophysical methods to detect hazardous structures ahead of mining, new mining layouts and support systems, and the mechanization of in-stope processes. Despite important differences in geology, in situ stress, mining layouts and methods, there are many opportunities for the reciprocal transfer of knowledge, experience and technology between the gold and platinum mining sectors to improve the management of the rockburst risk.

Jan 1, 2005

By N. D. L. Burger

A low noise blast hole drilling system was developed to limit the risk of noise-induced hearing impairment in mining operations. Noise- induced hearing loss has been identified as a major occupational health risk in SA mines. The noise generated by pneumatic percussion drills is a major contributor to such noise-induced hearing loss. This motivated the South African Safety in Mines Research Advisory Committee (SIMRAC) to commission the development of a low noise rock drill system. The system had to be designed, manufactured, tested and demonstrated in a simulated underground mining environment. The specification required noise levels below 90 dBA. Other important design considerations were ease of manual transport, setting up and operation. The primary design concept was to encapsulate a standard SecoS215 pneumatic rock drill in a composite material tube. The tube is pushed onto the rock face by a pneumatic cylinder and is sealed at the rock face by an elastic seal. The drill is pulled towards the rock face by a rope and pulley mechanism fitted inside the tube. This mechanism is powered by a second pneumatic cylinder. The actions of moving and setting the drill require two persons. However, the team can carry out the drilling function itself on several drills simultaneously because of the self-thrusting design. The drill is supported by two camlocks. The exhaust (air containing dust, water, rock debris, oil and grease) is removed from the encapsulating tubes via an exhaust tube to the end of the stope. In this way exhaust noise and air pollutants are disposed of away from personnel. Tests were conducted in a test stope. Noise levels of under 90 dBA were achieved, thereby attaining the primary design specification. This was achieved without materially compromising ease of handling. Penetration rate was somewhat improved compared to that of the standard drill, so that productivity could be maintained. Keywords: Drill, rock drill, quiet, noise, mine, underground.

Jan 1, 2004

By G. B. Quaye

The deep level gold mining environment is characterized by high stresses that give rise to intense mining induced fracturing of the rock mass surrounding the stopes. In a geologically disturbed region where the intensity of mining induced stress fracturing is high, the degree of faulting and/or the frequency of other geological features such as joints may pose serious strata control problems. Unfavourable intersection of these discontinuities namely, faults, joints and mining induced stress fractures tend to divide the immediate hangingwall into unstable keyblocks which, if not supported, may result in extensive falls of ground. Effective support strategies therefore demand detailed investigation of the predominant inclinations and orientations of these discontinuities. The orientations and inclinations of these discontinuities surrounding a deep level stope have been measured. The results are projected onto the lower hemisphere of a stereographic net to determine the factors that contribute to the falls of ground in the stope. The analyses reveal that unfavourable intersection of these discontinuities divides the immediate hangingwall into unstable wedges that may become dislodged between support units.

Jan 1, 1998

The Steering Committee for Minerals and Mining Policy convened two workshops during March 1996 to address the following topics: Business Environment- National and Provincial Powers, Administration and Regulation, Mineral Marketing, Beneficiation, Research and Development, Environmental Issues, Mining Impact on Surface Usage, Southern Africa Regional Issues. Human Resources: Elementary Residual Racism, Housing, Downscaling, Migrant Labour and Human Resource Development. Mineral Tenure: Mineral Rights, System of Access to Mineral Rights, Access to Exploration information, optimal Exploration, Trust Lands. Small-scale Mining. Development of Small-scale Mining, Artisanal Mining.

Jan 1, 1996

A Special General Meeting of the Institute was held in Kelvin House, Johannesburg on Wednesday, 29th September, 1971. The President, Prof. D. D. Howat opened the meeting at 9.55 a.m. The President read the notice of meeting which was as follows: "In order to bring industry into closer liaison with the work of your Institute and to place the Institute's finances on a sound basis your Council recommends that companies be admitted to membership of the Institute under clause 2.6 of the Constitution, that is, as Non-Corporate members. The designation for this class of member will be that of "Company Affiliate". 2 Membership: This clause to be amended as follows:- 2.6 "Non-Corporate members shall comprise the grades of:- Company Affiliate Honorary Fellow Graduate Associate Student" 2.6.1 This clause to be added:- "Companies involved in or associated with the mining or metallurgical industries are eligible to become company affiliates" 2.14 Add:- "A special certificate shall be issued to all company affiliates". After giving the background to the recommendation made by Council the President asked for a proposer and seconder for the resolution. Mr J. K. E. Douglas proposed and Mr D. G. Maxwell seconded the resolution. The meeting agreed that the constitution be amended as proposed. The meeting closed as 10.05 a.m.

By B. C. Alberts

Planning the use of South Africa's energy resources, especially coal, is of the utmost importance. The State and the mining industry require reliable official estimates of the economically mineable coal reserves for planning purposes. An overview of al the previous reserve estimates is given, with specific attention to the two most recent estimates-those of Petrick and De Jager. The differences between these two estimates are highlighted. The following important aspects are discussed: . the need to update the information regarding South Africa's mineable coal reserves, . the necessity of understanding and agreement between the coal-mining industry and the State department responsible for updating the coal-reserve data, and . the importance of the specific assumptions used in the updating of the data. A downward adjustment of mineable reserve figures is proposed, and the factors that influence the meaningful exploitation of the coal reserves are discussed. A recommendation is made as to how the Waterberg coal reserve should be exploited, and it is concluded that the Soutpansberg Coalfield cannot be exploited economically in the foreseeable future. An evaluation of the status of the coal-export trade is made and compared with the assumptions and targets set at the start of the coal-exportation scheme. The comparison shows the extent to which the exploitation of the coal reserves is being negatively influenced by the current market situation. Recommendations are made regarding planning for the coal-export market, and the aspects that have to be taken into account to keep South Africa in the export market are identified. Reference is made to the fact that the present unrestrained wage and salary adjustments, which show a total disregard of South Africa's poor productivity record, require serious thought and speedy rectification if the country is to survive in the export market. A salary and wage strategy must be developed to suit the specific needs of the Republic of South Africa.

Jan 1, 1987

By C. Musingwini, A. S. Nhleko, P. M. Muke

Open-pit mine planning includes the determination of a long-term open-pit mine production scheduling (OMPS) plan. The OMPS plan is generally a three-dimensional (3D) block extraction sequence that seeks to maximise the net present value (NPV) of future cash flows, while complying with technical and operational constraints. The OMPS problem is computationally complex because it involves the analysis of large datasets, while simultaneously incorporating both multiple hard and soft constraints. The OMPS problem has been solved using deterministic or exact approaches, heuristic, and metaheuristic models. When compared to heuristic and metaheuristic models, deterministic approaches tend to take much longer to solve the OMPS problem when the number of constraints increases. Therefore, this paper presents a metaheuristic model which utilises a genetic algorithm (GA) framework to solve the OMPS problem. The GA-based model was applied to the Newman1 and Zuck Small mining instances, which are publicly available from the online MineLib database. The NPVs for the OMPS plan generated using the GA-based model for the two case studies were compared to the best-known published MineLib solutions obtained using the TopoSort heuristic model at the time of this study. For the Newman1 instance the equivalent annual NPVs were approximately US$6.6 million for the GA-based solution and US$5.1 million for the TopoSort solution. For the Zuck Small mining instance, the equivalent annual NPVs were approximately US$99.8 million for the GA-based solution and US$102.5 mil for the TopoSort solution. These results show that the GA-based model produced comparable solutions to some of the best-known solutions, thus, indicating strong potential application of GA-based models to solve OMPS problems.

Sep 1, 2021

By N. A. Barcza

INFACON 7, the seventh International Ferro Alloys Congress, took place in Trondheim, Norway, in June 1995. The main aim of the Congress, which was held under the auspices of Euroalliages and the Norwegian Ferroalloy Research Organization, was to present the challenges facing the ferro-alloys industry on the road to the 21st century. Halyard Tveit, Chairman of the Technical Committee, summarized these as: ? the transition to a single global market economy ? new demands with regards to quality arising from customer needs, and ? increased awareness of the global environment. In the Plenary Sessions Kouichi Nakamura (Nippon Steel) outlined, from the steel industry's point of view, the relationship between technical advances in the products and more demanding ferro-alloy specifications. Advances in steel manufacturing technology and higher product quality have been supported in the past by raising the quality standards of ferro-alloys. Future requirements are bound to bring about more severe standards, and these need to be established by common agreement between both industries.

Jan 1, 1996

By C. Yi, M. Onifade, B. Genc, S. Dineva, T. Zvarivadza, M. Khandelwal

Deep hardrock mines worldwide increasingly face rockbursts as mining depths increase. These events result from the accumulation and sudden release of stress, causing rockmass damage and posing major safety and operational challenges. This paper focuses on destress blasting as a critical strategy to mitigate rockburst hazards. Although limited practical experience exists in Swedish deep hardrock mines, international case studies demonstrate that, when well implemented, destress blasting redistributes peak stresses by promoting controlled fracturing around mining excavations. The success of such techniques is highly dependent on site-specific factors such as stress regime, rockmass brittleness, structural geology, and blast layout. Although destress blasting is especially effective in massive, brittle rock under high stress, typical conditions for strainburst prone environments, its design cannot rely solely on numerical models. Simulations can offer preliminary evaluation of stress redistribution trends and guide early design assessments but their current limitations, including sensitivity to input data and simplified fracture mechanics, mean they are best used as supplementary tools rather than final decision-makers. Field trials, supported by microseismic analysis and fracture mapping, remain essential for validation. The study critically synthesises international experiences and presents a structured framework for destress blasting design, offering practical and academic perspectives aligned with Swedish geological conditions to support safer and more efficient application in deep hardrock mines.

Jun 27, 2025

By C. Siyasiya

One of the problems that is occasionally encountered during the continuous casting of DIN 1.4003 stainless steel (hereafter referred to as 1.4003) is the side bulging effect, a problem that is generally prevalent in ferritic stainless steels. This occurs because the unconstrained narrow sides of the solidification shell are not able to withstand the ferrostatic pressure once the strand has emerged from the mould. Coupled with side bulging, there is strand width variation at high temperatures, i.e. when the steel is in the ferrite-austenite dual phase region. Both of these dimensional changes to the slab profile create some processing problems in subsequent hot rolling operations when unacceptable width variations are encountered. The strength of the solidification shell and its ability to withstand the ferrostatic pressure during continuous casting is dependent on its thickness and phase composition when exiting from the mould up to a few metres downstream. From the study of the high temperature metallurgical behaviour of this steel, it was observed that a thicker solidification shell when exiting from the mould and a higher austenite volume fraction in the steel would be favourable for the reduction of the side bulging effect during continuous casting. It was also found that as long as the d-ferrite to austenite phase ratio keeps fluctuating due to variations in chemical composition and process control in the dual phase region from cast to cast, the strand width variation problem would probably persist. The remedy to this effect lies in more strict chemical composition and process control during continuous casting of this steel. The hot ductility experiments revealed that 1.4003 exhibits good hot ductility in the strand straightening temperature range with a minimum of 75 per cent reduction in area and this was attributed to the high volume fraction of ferrite (0.2 to 0.4) in the steel. This would provide a remedy to side bulging by increasing the secondary cooling rate of the strand in order to form a thicker solidification shell without necessarily risking transverse cracking and other surface defects during unbending. Keywords: side wall bulging, resistance bending moment, applied bending moment, ferrostatic pressure.

Jan 1, 2005

By R. W. O. Kersten, J. D. Austin

A questionnaire was circulated in 1986 that had the objective of establishing the type of material that members would like to see featured in the Journal of The South African Institute of Mining and Metallurgy. The questionnaire contained five main questions involving the following:

Jan 1, 1987

Falls of ground (FOG) still account for around 35 per cent of all fatalities in underground southern African mines. To help reduce FOG, appropriate support technology needs to be implemented, and a mindset and cultural change are required to make a significant change. Discipline plays a major role and needs attention, whilst appropriate first-world support technology is available to assist in the reduction of injuries and the improvement of productivity. Section 54 mine stoppages due to FOG are costly. Appropriate support should reduce these unnecessary stoppages. Coal mining has adapted leading support technologies over the years. Platinum and chrome mines have shown significant moves towards adopting leading and appropriate support technologies, seeing noteworthy changes in injury statistics for the better. In typical conventional underground mining operations, the use of temporary support components offers some protection to workers while the permanent and generally more elaborate support systems are installed or constructed. Nonetheless, FOG continue and still result in injuries to people. The author wishes to explore the options and practicality of making use of new-generation support products and technology to provide not only safer support operations, but to also enhance productivity at the working faces. This paper will examine the use of appropriate support technology as a means to making the working stope or development end a safer and more productive workplace.

Jan 1, 2012