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The modern theory of sampling of particulate minerals essentially consists of a recent generalization of the procedures for applying and calibrating the formula usually known as ?Gy?s Formula? for sampling variance control, in which the central concept is a parameter called the liberation factor l. A model which can be experimentally adjusted was proposed by one of the authors several years ago, based on geostatistical considerations. This new model, which relates the liberation factor to the sizes of the fragments and mineral grains, solves the usual difficulties faced in the past, and permits predictions that are well verified in practice. Unfortunately, an older, arbitrary and less general formula is still widely used. The vast majority of today?s misapplications of Sampling Theory of Particulate Materials can be traced back to the use of this antiquated and generally incorrect model. Following a brief history of the models used for the liberation factor and a description of its main variable, the liberation size, and to illustrate the importance of proper modelling of l, this paper presents demonstrative calculations of the absurdity of the incorrect model using the particular case of gold mineralization as an example, followed by some more positive examples of application.

Jan 1, 2002

By J. P. Harrison

ABSTRACT: The significant effect of fracture surface morphology on the mechanical behaviour of rock masses is well known and has been studied by many people. For linear profiles taken from fracture surfaces, short- and long-period variation has traditionally been described using the descriptors ‘roughness’ and ‘waviness’, with Fourier series analysis being perhaps the most commonly used technique to distinguish between the two attributes. However, the mathematical procedure is involved and the assumptions that have to be made may not be appropriate for rock fracture surfaces. In this paper, an alternative method is presented that enables us to distinguish between roughness and waviness of a linear profile by performing only one straightforward analysis. In our technique, surface morphology is studied in terms of the distribution of unit normal vectors to the profile. The statistical analysis of the distribution is performed using Riemannian, rather than the customary Euclidean, geometry, and from this the 1D Riemannian dispersion parameter (DR1) is obtained, which quantifies the geometry of the profile. The method is applied at different scales to both synthetic sinusoidal profiles and real rock profiles. The results show how periodic behaviour of the profile is revealed at scales where DR1 is substantially equal to zero. RESUME: L’influence significative de la morphologie des épontes sur le comportement mécanique des massifs rocheux est bien connue et a fait l’objet de nombreuses études. Pour les profils lineraires, les variations de courtes et longues périodes sont traditionnellement décrites par les indicateurs “rugosité” et “ondulation” qui sont le plus couramment distingués à l’aide d’une analyse en series de Fourrier. Cependant, la méthode de calcul utilisée et les hypothèses faites ne sont pas appropriées dans le cas des épontes rocheuses. Cet article présente une méthode alternative qui permet de distinguer la rugosité de l’ondulation d’un profil en réalisant une seule analyse directe. Avec notre technique, la morphologie de l’éponte est étudiée comme une distribution spatiale de vecteurs normaux au profil. L’analyse de cette distribution est réalisée à l’aide de la géométrie Riemannienne plutôt que la géométrie classique Euclidienne et permet d’identifier la dispersion Riemanienne en 1D (DR1) qui quantifie la géométrie du profil. Cette méthode est appliquée à différentes échelles sur des profils artificiels sinusoïdaux et des épontes naturelles. Les résultats montrent que le comportement périodique du profil est révélé à des échelles où DR1 est essentiellement égal à zéro. ZUSAMMENFASSUNG: Der signifikante Effekt von Bruchoberflaechen Morphologien auf das mechanische Verhalten von Gesteinsmassen ist gut bekannt und von vielen Bearbeitern untersucht worden. Traditionel lineare Profile von Bruchflaechen sind mit kurz und lang periodischen Variationen, die auch als “Rauhigkeit” und “Welligkeit” bezeichnet worden sind, beschrieben worden. Hierbei ist wohl die Fourier Serien Analyse das wichtigste Hilfsmittel zur Unterscheidung der beiden Attribute gewesen. Hierfuer wird jedoch ein mathematisches Prozedere verlangt und Vorraussetzungen gemacht, die vielleicht nicht fuer Gesteinsbruchflaechen zutreffend sind. In dieser Publikation wird eine andere Methode vorgestellt, die uns mit Hilfe nur einer einfachen Analyse erlaubt zwischen “Rauigkeit” und “Welligkeit” bei einem linearen Profil zu unterscheiden. In unserer Methode wird die Gesteinsoberflaeche unter zu Hilfenahme der Verteilung von Einheitsnormalvektoren beschrieben. Die statistische Analyse der raeumlichenVerteilung dieser Vektoren wird mit Hilfe der Riemannschen, anstatt der ueblicherweise benutzten Euklidischen, Geometrie durchgefuehrt. Von ihr wird der Riemannsche Dispersions Parameter (DR1) abgeleitet, der die Geometrie des Profils quantifiziert. Diese Methode ist bei verschiedenen Masstaeben sowohl auf rein harmonische (sinusoidale), syntetische Profile als auch auf Gesteinsprofile angewendet worden. Die Ergebnisse zeigen, dass bei Masstaeben bei denen DR1 nahe Null ist periodische Characteristika der Profile hervortreten.

Jan 1, 2003

In ilmenite smelting, the FeO content of the feed material (nominally FeO.TiO2) is decreased by reduction with carbon. In a parallel reaction, a significant amount of the TiO2 is reduced toTi2O3. One of the striking features of these reactions is a consistent relationship between the extents of FeO and TiO2 reduction; this relationship is independent of furnace size. It was recently proposed that this relationship follows from the solidification behaviour of the slag, where the final slag composition corresponds to the minimum melting point (?eutectic groove?) in the FeO-TiO2-Ti2O3 phase system; the hypothesis is that solidification equilibrium with the freeze lining stabilizes the slag composition. If this is the case, the system of slag and freeze lining must be capable of correcting two types of disturbances: thermal and compositional. Thermal disturbances result from incorrect power input, for the feed rates of ilmenite and reductant. For example, excessive power input will tend to overheat the slag, causing the freeze lining to melt partially, establishing a new steady-state heat loss from the furnace. Compositional disturbances result from an incorrect reductant input for the given power and ilmenite input. In this work, the dynamic response of the slag and freeze lining to different inputs (flow rates of ilmenite and reductant, and power input) is modelled. The model is based on solidification equilibria, and quantified heat loss through the freeze lining. The conclusion is that the solidification equilibrium cannot constrain the composition to the eutectic groove for typical operating conditions. Keywords: ilmenite smelting, freeze lining, solidification, high-titanium slag

Jan 1, 2004

By W. Kotze

The gold mining industry has mainly relied upon the use of highly polluting chemicals, such as mercury and cyanide to recover gold from its ores. The Coal Gold Agglomeration (CGA) process was developed some years ago and has the advantage in that gold is recovered by a procedure which has little or no negative impact on the environment. A gold ore containing liberated gold particles is contacted with coal-oil agglomerates, where by the gold is recovered into the coal/oil phase. Laboratory scale batch tests were performed on an artificial mixture gold slurry and gold recoveries of up to 85% were found under optimized conditions. By recycling the coal/oil phase, it was found that the gold loading onto the agglomerates was increased. Tests performed on an industrial ore yielded slightly lower gold recoveries, and X-ray Diffraction (XRD) analysis on the coal/oil phase showed that minerals other than gold was recovered into this phase. A comparative study was conducted whereby the CGA process was compared to mercury amalgamation. Gold recoveries obtained through amalgamation were 15% lower than by the agglomeration process, which indicates that this process can be considered favourably as an alternative to amalgamation.

Jan 1, 2000

Outsourcing of specialist and non-continuous services is common practice in international mining operations. There is an increasing trend towards this practice in South Africa as a result of the major organisational changes that have taken place in the industry, and as lower revenues and production cost pressures have reduced profit margins. Many specialist functions have been outsourced in the industry for a long time, an example being shaft sinking, which is undertaken by specialist shaft sinking contractors. In the professional services area, some activities have been outsourced, for example the design and construction supervision of tailings dams, but mining related activities such as geology, mine planning and scheduling, engineering, ventilation, and rock engineering, have traditionally been carried out by in-house staff. In this paper some of the industry problems which have led to an increase in outsourcing of professional services are considered. Then the pros and cons of outsourcing are dealt with before outlining the factors which should be taken into account in choosing an outsourcing partner.

Jan 1, 1999

The paper reviews the results emanating from an experiment conducted in Bochum?Germany in which various international rope inspection authorities were requested to assess the conditions of a corroded rope sample as well as a rope sample containing internal fatigue breaks. Both samples were of the multi-layer low rotation construction.

Jan 1, 2000

By M. J. Nicol

The kinetics of the dissolution of colloidal silver in aerated cyanide solutions has been investigated with the aim of developing a relatively rapid and convenient method for monitoring the ?leaching power? of solutions typically used in the cyanidation process. Experimental results obtained are consistent with an electro-chemical model, in which the mixed potential is set up in the active region of the polarization curve for the anodic dissolution of silver, giving rise to a rate of dissolution which is controlled by the rate of mass transport of either cyanide or oxygen to the surface of the silver. The rate of dissolution of colloidal silver was found to respond to variations in the reactant concentrations in a similar manner to gold (and silver) in a typical free-milling ore. The use of this technique for the monitoring and control of the cyanide leach process is discussed.

Jan 1, 1998

By M. Nyoka

Consideration of the economic, environmental, and social impacts associated with the life-cycle of a technology is of increasing importance for decision-making in industry. It has been suggested that economic assessment of technology deployment projects requires the translation of associated environmental effects into monetary values. This paper introduces an approach for identifying and evaluating environmental damage in monetary terms. The approach groups the environmental impacts associated with a technology life-cycle system into four main criteria: air, water, land, and mined abiotic resources. The valuation of the impacts on the resources consists of an economic cost benefit analysis (CBA) procedure that comprises four steps: the compiling of an impact inventory, a monetary valuation of the inventory, discounting, and a risk/uncertainty analysis. The monetary valuation step for impacts on air resources is primarily based on published externality costs for Europe and the United States, which are adopted and converted to reflect the South African context. Local opportunity costs are utilized for the other resource criteria. The damage costs are transformed into South African Rand at 2005 prices. The paper demonstrates how the approach may be applied in the assessment of projects in the metallurgical industry. Shortcomings in the approach are identified. For example, not all of the aspects that are considered necessary to assess environmental performances comprehensively can be valued in monetary terms. Also, certain values, specifically those pertaining to opportunity costs, need to be determined on a case-by-case basis. Furthermore, the uncertainties associated with the indicators obtained may strongly influence the usability of the results of an environmental performance assessment, e.g. future damage costs will change with fluctuations in the markets. It is concluded that although such an approach has merit in increasing the understanding of the potential financial implications of a technology?s environmental performance, further research is required to improve the approach described if it is to be used further in the South African metallurgical industry. Damage cost estimates that are specific to South Africa need to be developed to reduce uncertainty, and the combination of both quantitative and qualitative approaches is recommended for comprehensive sustain-ability decision-making.

Jan 1, 2007

By H. J. Ilgner

The paper reviews the results to date of an integrated research programme currently being conducted by CSIR Mining Technology, aimed at impacting significantly on concentrated mining with face advance rates of up to 20 times faster than presently achieved. Consideration is given to the interplay between innovative technologies for continuous non-explosive mining or rock comminution underground and lateral hydraulic transportation in cross cuts, haulages and eventually hydro hoisting. Novel technologies for underground comminution of reef and development waste and an innovative pumping system suitable for the hydraulic transportation of coarse comminuted rock are reviewed. Emphasis is placed on South African gold mine reef and waste samples comminuted by electric shock wave comminution technology. The innovative TORE® pump system appears to be well suited for the successful hydraulic transportation of rock, produced by electric shock wave comminution, at solids concentrations between 45 % and 67 % by mass.

Jan 1, 1997

By C. F. Strydom

Paper written on project work carried out in partial fulfilment of B. Eng (Mining Engineering) degree The Self-directed work team concept is the product of relentless performance pressure on American industries during the late eighties and early nineties from other world industrial leaders like Japan. The concept proved to be a successful vehicle by which the Americans could increase their production and improve their safety statistics. The aim of this study is to evaluate the concept as a means to improve the overall performance on South African goldmines. he study is directed by a historical research section, answering questions like: ?Why do we need to change? ?What is a Self-directed work team? ?What are the principle advantages of the concept? ?What are the essential requirements for the concept to succeed? The study also includes an empirical research section that focuses on the current Self-directed work team situation in the South African gold mining industry. The empirical research section is limited to three case studies within Anglogold due to a study period of only six weeks. The mines chosen for the case studies have been labelled Mine 1, Mine 2 and Mine 3. The latter being the base mine allowing for a more in depth study. This includes a perception analysis towards Self-directed work teams within the mine. The study proves the truth of the Latin proverb ?Tempora mutantur, nos et mutamur in illis? meaning ?The times are changing, and we are changing with them?. The chief change catalysts identified are a dwindling gold price and a projected labour crisis. From the study it is evident that the Self-directed work team concept disposes of the critical parameters required for a dramatic improvement in performance. The study also indicates that for the concept to succeed, certain factors like top-level commitment and management-employee trust have to be in place. Sadly, the concluding part of the study proves that very few of the identified critical success parameters are present in the South African gold mining industry. This can serve to explain why the industry only has success with the concept when monetary gain is the chief motivator. The study only focuses on the reasons why the concept is not performing to its full potential and does not wander into explaining the reasons for the current unsupportive milieu in the industry. Self-directed work teams could well rescue the South Africangold mining industry but currently we are driving a square pin into a round hole! [Terminology SDWT?Self-directed work teams AEL?Adventure Experiential Learning ISW?In-stope worker POLC?Plan, organize, lead and control TEC?Total employee costed Silo?The confinement of departments preventing networking JCI?Johannesburg Consolidated Investment Co. Ltd]

Jan 1, 2002

By K. S. Rao, R. P. Tiwari, V. K. Shrivastava

ABSRACT: In this paper numerical simulation of jointed block mass behaviour obtained in an experimental study has been presented. Singh et al. (2002) conducted extensive tests on the jointed model materials with several joint configurations. The results of this experimental study were used to validate the strength behaviour of numerical block mass model developed using professionally available software. This software basically contains different kinds of material models. From the results of numerical simulation the existence of strength anisotropy was observed. The strength anisotropy so obtained has been compared with the experimental values reported by Singh et al. (2002). The anisotropic curves in both cases are U-shaped with flat base. They show good agreement in sliding mode of failure zone in which inclination ß (= 90° - ?) of joint set-I lie between 20° to 40° for all cases of interlocking. ZUSAMMENFASSUNG: In dieser numerischen Papiersimulation des verbundenen Blockmasse Verhaltens, das in einer experimentellen Studie erhalten wird, ist dargestellt worden. Singh et al. (2002) leiteten umfangreiche Tests auf den verbundenen vorbildlichen Materialien mit einigen gemeinsamen Konfigurationen. Die Resultate dieser experimentellen Studie wurden verwendet, um das Stärke Verhalten des numerischen Blockmasse Modells zu validieren, das mit professionell vorhandener Software entwickelt wurde. Diese Software enthält im Allgemeinen unterschiedliche Arten der materiellen Modelle. Von den Resultaten der numerischen Simulation wurde das Bestehen von Stärke Anisotrophie beobachtet. Die Stärke Anisotrophie also erreicht ist mit den experimentellen Werten verglichen worden, die von Singh et al. (2002) berichtet werden. Die anisotropen Kurven in beiden Fällen sind mit flacher Unterseite u-förmig. Sie zeigen gute Vereinbarung in gleitender Erscheinungsform des Ausfalls Zone, in der Neigung ß (= 90° - ?) von der Verbindung stellenSie Lüge zwischen 20° auf 40° für alle Fälle vom Ineinandergreifen ein. RESUME: Dans cette simulation numérique de papier du comportement joint de la masse de bloc obtenu en étude expérimentale a été présenté. Singh et autres (2002) ont effectué les essais étendus sur les matériaux modèles joints avec plusieurs configurations communes. Les résultats de cette étude expérimentale ont été employés pour valider le comportement de résistance du modèle numérique de la masse de bloc développé en utilisant le logiciel professionnellement disponible. Ce logiciel contient fondamentalement différents genres de modèles matériels. Des résultats de la simulation numérique on a observé l'existence de l'anisotropie de force. L'anisotropie de force ainsi obtenu a été comparée aux valeurs expérimentales rapportées par Singh et autres (2002). Les courbes anisotropes dans les deux cas sont en U avec la base plate. Elles montrent la bonne concordance dans le mode coulissant de la zone d'échec en lequel la inclination ß (= 90° - ?) du joint placez-Je le mensonge entre 20° à 40° pour tous les cas d'enclencher.

Jan 1, 2003

By S. E. Olsen, T. Færden, G. Tranell, T. Lindstad, J. Lubetsky

The authors are lead authors for chapter 4.3 ?Emissions from Ferroalloy Production? in ?2006 IPCC Guide-lines for National Greenhouse Gas Inventories, Volume 3?. The paper discusses the methods to calculate and report emissions from the production of ferrosilicon, silicon-metal, ferromanganese, silicomanganese and ferrochromium alloys, as well as the basis for the methods and choice of emission factors. CO2 is the main greenhouse gas emission from ferroalloy production, accounting for about 95 % of the total CO2-equivalents. The most accurate method of determining emissions is to base the calculations on reported amounts and analyses of reducing agents and carbonate ores used in the process. If analyses are not available, typical CO2 emission factors for the different reducing agents are recommended. If neither reliable amounts nor analyses of all reducing agents are known, default generic CO2 emission factors for the type of ferroalloy multiplied with amount produced, can be used. The CO2 produced from bio-carbon (charcoal and wood chips) should be reported but will not be accounted for in national emissions. If any bio-carbon is used, the default generic CO2 emission factors cannot be applied. CH4 accounts for less than 1 % of the total emission of CO2-equivalents. Default emissions factors for CH4 are given for the production in open or semi-closed furnaces of silicon-metal and ferrosilicon. In the production of FeMn, SiMn and FeCr in closed furnaces the gas containing CO,CO2 and volatiles can be combusted in boilers and N2O may be formed. While reporting is not required, IPCC Guidelines recommend that the N2O-content in the off-gas is measured.

Jan 1, 2007

By S. Luyckx

This paper reports hardness and abrasive wear resistance test results from a wide range of WC-Co alloys, varying in cobalt content as well as WC grain size. The results show that the abrasive wear resistance increases with increasing hardness and that the rate of increase is higher for larger WC grain sizes. The increase in abrasive wear resistance was found to be parabolic up to a critical hardness value and exponential above that value. The transition from parabolic to exponential behaviour was found to occur at the same contiguity value for all grain sizes, which suggests that at that contiguity value the WC skeleton becomes continuous in all WC-Co alloys.

Jan 1, 2004

Application of Gy?s formula is appropriate for calculation of the Fundamental Error (FE) prior to samples being collected at any stage of the minerals process, provided that sampling parameters K and a (alpha) have been determined by calibration of the ores. Two types of calibration procedure are well established in the industry, the Hetrogeneity test and the 32-piece sampling tree experiment. The sampling tree experiment uses the variance and average grade of metal analyses from four series of samples at different nominal fragment size, as the basic input data. Pierre Gy suggested the cube as an appropriate exponent of the nominal fragment size for use in his equation. More recent work suggests that this exponent is variable and characteristic of specific ores and therefore requires calibration. The method described here explains the experimental procedure of the calibration. It is then possible to calculate a sampling nomogram using the sampling parameters K and a. This allows the sampler to determine a suitable protocol for the sampling event that will ensure that the FE does not exceed a predetermined precision at any point in the sampling procedure.

Jan 1, 2007

By F. T. Cawood

Monitoring of the slopes of surface mines can prevent loss of life, loss of equipment, loss of production and possibly the loss of the mine. The effectiveness of such monitoring depends on the extent to which slopes give adequate advanced warning before failing, and on the ability of the monitoring system to detect such warning. In this paper an overview is given of slope monitoring requirements, from both the geotechnical and survey points of view, as well as the types of equipment and instrumentation that are available. Legal issues relevant to slope monitoring are also dealt with. It is concluded that conventional geotechnical and survey instrumentation will continue to have their place in slope monitoring. However, the slope monitoring scene has changed substantially in recent years. A real and volume-based monitoring equipment is now available and this has provided, and will continue to provide, the means to improve safety, and to enhance productivity in mining. Its benefit to slope management is substantial. In the near future it is expected that data obtained from such equipment will add a much needed new dimension to slope engineering, and be used to improve slope designs and to optimize slope angles.

Jan 1, 2006

By A. H. Swart

Rock engineering is concerned with the design of rock structures generated by mining activities. Therefore, rock engineering designs have major implications for the safe recovery of mineral deposits and operating costs. The paper deals with a few challenges facing rock mechanics engineers operating in the hard rock underground mining environment in South Africa. Finally, examples are included, which may assist rock mechanics engineers in providing better designs, which could ultimately lead to further improvement in safety and lower operating costs.

Jan 1, 2005

By D. Fukahori, K. Sugawara, A. Sato

X-ray Computed Tomography (CT) is a nondestructive imaging technique, and its efficiency is widely recognized. In the present paper, X-ray CT is successfully applied for the visualization of water permeation process in rock. A new experimental technique using a tracer, which mainly consists of Potassium Iodide (KI), is proposed, together with the analysis method of the velocity field. The permeation process and the velocity field in rock are concretely visualized and analyzed by considering the conservation of mass of the tracers. La tomographie calculée aux rayons X est une technique de la prise d'images non-destructive et son efficacité est largement reconnue. Dans le présent exposé, la tomographie calculée aux rayons X Radio est appliquée avec succès à la visualisation du procédé de perméation de l'eau dans la roche. Une nouvelle technique expérimentale, se servant d'un identificateur principalement constitué d'iodure de potassium (KI), est proposée avec la méthode de l'analyse du champ des vitesse. Le procédé de perméation et le champ des vitesse dans la roche sont visualisés concrètement et analysés en considérant la conservation de masse des identificateurs. Röntgen-Computer-Tomografie (CT) ist eine nicht-destruktive Bildverarbeitungstechnik, deren Effizienz weit anerkannt ist. In der vorliegenden Arbeit wird Röntgen-CT erfolgreich für die visuelle Darstellung des Wasser-Durchdringungsvorgangs im Fels eingesetzt. Eine neue experimentelle Technit mit einem Tracer, der hauptsächlich aus Kaliumiodid (KI) besteht, wird vorgeschlagen, zusammen mit der Analysemethode des Geschwindigkeitsfelds. Der Durchdringungsprozess und das Geschwindigkeitsfeld im Fels werden konkret visualisiert und analysiert, wobei die Bewahrung der Masse des Tracers berücksichtigt wird.

Jan 1, 2003

By H. S. Marshall

Optimum Colliery is an opencast strip mine producing 18Mt of bituminous coal per annum for the export and inland markets as well as for domestic power generation at the Hendrina PowerStation. Coal is exposed by four 60m3 and four 11m3 walkingdraglines and transported from the open cuts to the processing plants by twelve 130 ton coal haulers. Overburden and interburden areas are drilled by nine 250mm-diameter rotary drill rigs. Until 1997 all surveying tasks were conducted by electronictotal stations requiring accurate control points from which line-of-sight XYZ readings could be taken. In 1997 a GPS system was introduced which consisted of a fixed base station and two rovers. The rovers were able to perform most of the survey tasks assigned to total stations. In addition, two overburden drills were equipped with blasthole drill navigation systems, which includes the drill monitoring and material (strata) recognitions system. The rest of the drilling fleet will also be equipped with GPS systems. Blasthole positions are designed in the office based on survey and geological/geophysical information and transmitted via radio link to an industrial PC on the drills. Together with GPS positional data, both the planned and actual drill positions are displayed on an LCD screen. This eliminates the need for surveyed hole positions to be staked before drilling, and for actual hole positions to be surveyed after drilling. As holes are drilled, performance and rock property data transmitted back to the office. Future applications will include GPS monitoring of dragline positions and pad elevations. GPS receivers on the draglines will utilize the existing base station to calculate and transmit XYZ co-ordinates. Another application will be locating of boreholes in the field prior to the pumping of specified explosive charges into the blastholes. Charging instructions for each blasthole will be loaded into the computer on the explosives truck which will be equipped with a GPS system for hole identification.

Jan 1, 1998

By I. Benning

Since the dismal performance of the Rand Mines management was called to account by its shareholders in 1994, the waves of change have continued to ripple across the South African mining industry .The number of listings on the gold board of the Johannesburg Stock Exchange, that once numbered 40 or 50-odd, have now dwindled to no more than a handful as unprecedented restructuring has taken place. The redefining of the industry has not been limited to the gold sector, but across the base metal, coal, diamond, platinum and industrial mineral sectors as well. At the same time the Mining Houses began to reconsider their funding strategies. Originally established in the early part of the century to ensure the long-term sustainability of their group mining operations by providing substantial financial muscle and technical support, the Mining Houses were faced with a rapidly changing political environment, which proved to be a critical catalyst in giving momentum to the change. Furthermore, the significant development costs and increasing risk profile for new projects, coupled with pressure from shareholders demanding respectable returns, opened the door to opportunities for banks to begin providing external debt by the way of project finance. However, the provision of long-term debt to the South African mining industry had generally not been common since mining companies had financed new projects with equity, or with the cash flows from existing operations. Those banks that had the appetite for exposure to the perceived high risks of the mining sector rapidly built up specialist resource banking divisions capable of addressing the increasing demands of the industry. The application of project finance, the principles of which were developed in the 1970s specifically for infrastructure projects and privatization, is now commonly applied in the financing of greenfield and brownfield mining projects. This paper outlines the approach that lending banks would typically adopt when arranging or providing mining project finance, their usual areas of concern and the way in which the finance is structured to mitigate the many inherent risks.

Jan 1, 2000

By G. H. Lind

This paper discusses the traditional costing approach currently used in the underground coal mining industry. Activity Based Costing (ABC) is identified as being a potentially more effective manner in which to cost underground coal mining systems. With the use of a costing framework developed by the author incorporating new thinking to eliminate the shortcomings identified in the traditional costing approach, a comparison of two types of underground coal mining systems, viz. continuous miner and longwall, is conducted. It is found that under certain criteria, in all cases, irrespective of the way in which the systems are costed, the continuous miner system is currently the better investment. It is also observed that when a system is costed using ABC that better investment decisions result when compared to costing the same system using traditional costing techniques. It is further seen that traditional costing techniques tend to overestimate the total costs of a mining system. This paper shows one application of ABC that can be incorporated as a management tool.

Jan 1, 2001