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By R. G. Votteler, A. C. Brent

"The business performance of mining corporations in South Africa is adversely affected by the constantly increasing electricity costs. The most commonly used power sources are the national utility supplier via a grid connection, and on-site diesel generators. Previous research has identified the renewable sources of solar photovoltaic (PV), onshore wind, and geothermal energy in hybrid versions with current sources as possible opportunities to counteract rising electricity costs. To provide a clear understanding of the new, developing market of renewable energy sources, this research is divided into two papers. This first paper investigates the internal business structure of mining corporations in order to evaluate electricity generating sources. The multi-criteria decision analysis (MCDA) method is selected as the most suitable approach for this. The paper identifies the criteria used by mining corporations to evaluate possible electricity generation sources for self-generation by means of the corporations’ own investment. Four mining corporations with several mining locations were interviewed. The interviews revealed both new and identical evaluation criteria when the findings were compared to earlier MCDA adaptations analysed in the literature review. The second paper (Part 2) combines current knowledge about the external macroeconomic environment with the findings about the internal environment described here. MCDA is adapted in Part 2 and implemented to analyse and compare current to hybrid renewable sources from the perspective of mines. IntroductionMining corporations in South Africa are currently adversely affected by increasing electricity prices. Electricity is supplied mainly by Eskom1 and, especially in remote locations, by on-site diesel generators (Boyse et al., 2014). Electricity price increases, emanating from diesel price hikes and Eskom, have escalated the total operational expenditure on electricity by the largest mining corporations from 8% to 20% of total operating costs in the past seven years (EIUG, 2015). The reliability of electricity supplied by Eskom has decreased drastically (Govender, 2008), and the prices will increase annually by at least 13% until 2018 (Numbi et al., 2014; Eskom, 2015b). In addition, the South African government plans to introduce a carbon tax on greenhouse gas emissions (Alton et al., 2014)."

Jan 1, 2017

By A. Bascetin

One very important aspect of mining is deciding what material in a deposit is worth mining and processing, versus what material should be considered waste. This decision is summarized by the cut-off grade policy. The cut-off grade strategy for an open pit mine influences the annual cash flows and affects the net present value of a project. The optimization of cut-off grade strategy requires the knowledge of detailed operational costs, mining sequence, mining operation, processing, and product constraints, as well as the grade distribution of a given deposit defined by pit, phase, and different material types. Cut-off grade optimization algorithms have been developed in the past. The most common criteria used in cut-off grade optimization is to maximize the net present value (NPV). This paper describes the determination of a cut-off grade strategy based on Lane?s algorithm adding an optimization factor based on the generalized reduced gradient (GRG) algorithm to maximize the project?s NPV. The introduced algorithm is a windows based program developed at Virginia Tech that is based on a series of Visual Basic routines within a spreadsheet environment (Excel).The benefits of the methodology are demonstrated using a hypothetical case study. Keywords: Cut-off grade optimization, net present value maximization, generalized reduced gradient algorithm method.

Jan 1, 2007

By I. Jauhari, F. Stober, D. Fowler, B. O. Wasmund, T. Miraza, C. Nichols, A. Taofik Hidyat, K. Said

The existing PT Aneka Tambang (Antam) ferronickel smelter located at Pomalaa, Indonesia consists of two RKEF lines with reduction furnaces nominally rated at 17 MW and 18 MW, respectively. The low power densities and heat fluxes allowed both furnaces to operate with falling water film shell cooling systems. The furnace campaigns comprised a 5-yearly cold shut -down for metal taphole area rebuild and a 10-yearlysidewall and hearth perimeter repair. Towards the end of these campaigns the furnaces would typically be operated at below nominal power due to excessive sidewall temperatures. In January 2001 Hatch performed a smelter study which proposed options which indicated the possibility of a single furnace operation for the smelter, elimination of lime addition and transition to shielded-arc operation with associated efficiency and throughput gains. This paper discusses the process of uprating the second?line furnace capability from 18 MW to 32MW following the decision by Antam to implement the recommendations proposed by Hatch. It will cover the development of scaled-up furnace design basis by Hatch and Antam with the enabling application of Hatch cooling and binding technology. To optimise the capital cost and maximise Indonesian supply content and post installation support, the scope was carefully and clearly divided between Hatch and Antam. The challenges, set backs and valuable learning experiences gained during the implementation of the retrofit include; ?The support and re-use of existing roof system and challenges presented in re-use of existing crucible support steel. ?Training and technical assistance for Antam operators to perform refractory and copper cooler installation and maintenance of crucible integrity technologies. ?Hearth integrity during start-up and development of an initial charge and start-up procedure to achieve planned thermal expansion of the hearth prior to bath formation ?Implementation of a sidewall hold-down system within the refractory sidewall due to space constraints ?Existing furnace foundation reinforcement to overcome lateral forces on furnace piers during crucible support steel expansion ?Conversion of an open-loop gravity feed cooling water system to a closed loop pressurised system with integrated emergency gravity feed and backup system ?Existing water treatment system and pumping system improvement and modification to meet copper cooling system requirements ?Integration of the new instrumentation control system designed by Hatch to increase performance of the furnace monitoring system and operation ?Uprate transformer capacity from 25 MVA to 40 MVA to meet with requirement of Shielded- Arc Furnace Operation.

Jan 1, 2007

By Steven M. Rupprecht

"The artisanal mining sector in Central Africa is largely informal, yet provides an essential livelihood for many (directly or indirectly) participants, as well as facilitating an important source for the flow of income into many communities. Artisanal mining varies from site to site, but appear largely well structured despite its informality. The artisanal mining sites in Central Africa have some inherent management structure and the extraction itself is often organised. Artisanal mining is labour intensive and is generally conducted utilising hand digging methods e.g. shovels or hand chisels. Artisanal mining is generally more dangerous than small-scale or large-scale modern mining operations. This is especially true as artisanal operations are generally subsistence activities with artisanal miners focusing more on immediate concerns than the long-term consequences of their activities. When miners have no other source of income, they will usually find ways to evade controls and carry on working. The objective, through proper/dedicated training of artisanal miners is to migrate Artisanal mining to establish a small-scale mining (SSM) industry in Central Africa. Through developing the necessary skills in the fundamental areas of mining it is proposed that Artisanal Mining can become more productive and safer mining operations. The paper reviews the above focus areas, highlighting the skills and tools that are necessary to assist in establishing a sustainable small scale mining industry migrating from manual labour to semi-mechanised mining and processing. The purpose of the transformation process is to create a safe, healthy, environmental and community oriented mining operation with the objective to uplift the skills and wealth of the mineworkers and the general community."

Jan 1, 2015

By C. Musingwini

An often overlooked factor in the analysis of mine layouts and schedules is technical operating flexibility (or tactical flexibility), mainly due to its nebulous nature. By glossing over technical operating flexibility the resultant mine layouts and schedules maybe suboptimal. The need to incorporate technical operating flexibility into the analysis and comparison of mine layouts and schedules is increasing in importance. The nature of technical operating flexibility is illustrated, previous work on valuing of operating flexibility reviewed, and a proposal made on how technical operating flexibility can be quantified for tabular reef mines by using a platinum reef deposit as a case study. Once technical operating flexibility has been quantified it becomes possible to explore its incorporation into the analysis of mine layouts and schedules and subsequent optimization processes. This paper is a revised version of a paper presented in the Proceedings of the Second International Platinum Conference, ?Platinum Surges Ahead? in 2006. The work described in this paper is part of a current PhD study at the University of the Witwatersrand. Keywords: mine plans, layouts, schedules, technical operating flexibility/tactical flexibility, ore availability.

Jan 1, 2007

By C. Kruger

Anglo American Platinum has adopted a strategy of best practice principles (BPP) for sampling, mass measurement, analysis, and metal accounting for more than a decade now. When new plants are designed, the most suitable sampling equipment and sampling protocols are implemented and material flows and plant layouts are designed around sampling strategies. A few years ago, a crushing plant for a high-grade matte stream was commissioned. The design called for the high-grade material to be crushed to 95% passing 2 mm, and the design allowed for a single-cutter primary Vezin sampler taking increments from a gravity flowing stream at regular intervals while filling a tanker for pneumatic offload at the base metal refinery. This was a single point of sampling and analysis that would measure the wanted output from the smelting complex and the input to the refineries. In addition, the design incorporated the functionality to collect increments in an ?interleaved? fashion from the Vezin sampler for internal precision checks. The metal accounting strategy for Anglo Platinum involves the ongoing measurement of all inputs, outputs, and stock levels for all operations for platinum group metal (PGM) and base metal (BM) content. Included are yearly stocktakes, usually done on 1 February, across the smelters and refineries (at least the base metal refinery). In the accounting period immediately following the introduction of the new crushing and sampling facility, a trend was developing whereby the absolute difference between the physical stock and theoretical stock (PGMs predominantly) increased for the two respective sites on an ongoing basis. The smelter showed an increase in physical stock compared to the theoretical stock (sender) and the base metal refinery showed an increase in theoretical stock against physical stock. Because of this anomaly, an additional stocktake was held in September for the period in question, and it was confirmed through the physical stock measurement results that the PGM accounting problem was indeed pointing towards the evaluation of the high-grade matte stream. This paper showcases parts of the process that took place to explain the poor accountabilities for the two sites. Previous results from the sampler ratification process (of the interleaved sampling design) were reanalysed, a physical inspection was carried out on the sampling system again, and the sampler performance was monitored (quality control parameters) for the period. From these investigations, it was found that airflows inside the Vezin introduced the sampling bias. A change in sampling protocol was introduced, as well as certain physical changes to the sampling equipment, to eliminate the airflow and thus the bias conditions significantly. The accounting period that followed the phased upgrading process showed that the accounting between the smelter and base metal refinery had been restored to within statistical limits (difference between physical and theoretical stock below 5% relative to theoretical stock). Keywords sampling, metal accounting, Vezin sampler, sampler bias.

Jan 1, 2014

By Ernie Holden, Chris Ringas

In the last 20 years, In Line Inspection (ILI) using intelligent pigs has become the principal tool used by pipeline operators to assess the condition of their pipelines. New pipelines are normally designed to take intelligent pigs, but many older pipelines require some modifications and special procedures for their inspection. This paper is aimed at practicing engineers and managers of pipelines, or people aspiring to those positions. The paper describes the benefits of ILI and some of the practical issues regarding pipeline preparation and cleaning, choice of inspection tool, running pigs in pipelines, and what to do with the data collected. What are the responsibilities of the Pipeline Engineer ? ? Maintain reliable and acceptable performance of the pipeline in terms of safety and product delivery at economical cost. ? Provide a defined margin of safety for operating the pipeline at its designated pressure. ? Provide timely information on all pipeline defects such that repairs can be carried out according to a managed schedule. What Defects does the Pipeline Operator have to cope with ? A useful record of actual incidents seen in pipelines can be obtained from the web site of the US Office of Pipeline Safety (OPS) - http://ops.dot.gov/stats/stats.htm. US pipeline Operators are obliged by Law to report all pipeline incidents exceeding certain threshold criteria (e.g loss of life, escape of product, cost of incident etc). These OPS statistics show that corrosion and third party damage have remained consistently the prime causes of reportable incidents in the US, with similar experience elsewhere. There are several kinds of flaws and defects in pipelines that can lead to failure, the main families being :- ? Metal loss ? Cracks or crack-like defects ? Laminations and other mid-wall defects ? Geometric anomalies

Jan 1, 2006

By D. Tsweleng

In the Evraz Highveld production process, iron ore is prereduced in rotary kilns prior to charging into submerged arc furnaces (SAFs). Owing to the highly aggressive slags that are formed within the combustion zones of these kilns, chrome-oxide-containing lowcement castables have been used for some years in the kiln lining. Due to concerns around the potentially harmful effects should Cr(V1) be present in the spent linings, Highveld and its suppliers of kiln castables devoted time to developing alternative chrome-free lining materials. Such materials needed to be cost-effective and ensure good performance and improved kiln availability. This paper discusses all the parameters surrounding this development. Keywords Low-cement castable, chrome-oxide free, chrome (VI), titaniferous magnetite ore, rotary kiln, submerged arc furnace, open slag bath furnace, Evraz Highveld Steel & Vanadium Limited.

Aug 1, 2013

By M. Mostert

Mining companies sponsor a range of non-core, corporate social responsibility projects to adhere to social and labour plans and environmental management prerequisites that form part of a mining licence application. Some companies go above and beyond such projects, sponsoring initiatives that generate renewable energy through solar power, wind energy, natural gas, etc. The challenge for these companies is to choose between a variety of projects to ensure maximum value, especially in times when the economic climate might be less favourable for such projects. The focus of this research was to analyse the concept of sustainability as it exists today, and to apply that to the triple bottom line accounting method in an attempt to quantify the sustainability of a project. Research was done on the methane burn-off project at Sibanye Gold?s Beatrix Mine to establish how such projects are planned and financed, and what impact they have on the triple bottom line of a company. The financial bottom line is, by definition, one that executives understand. This paper also proposes a quantitative method for defining the social and environmental bottom lines as well. By considering the financial, social, and environmental values, the study attempts to determine a monetary value for a sustainable renewable energy project. This monetary value can be compared to similar values obtained for other sustainable renewable energy projects under consideration. The research suggests that monetary value alone is not enough to base a sustainable decision on, and qualitative measures are suggested for use in conjunction with quantitative methods. The selection method proposed should assist the board of a mining company to choose the most sustainable option and the project that will add the greatest value to the company across all three bottom lines. It will also provide increased justification for such renewable energy projects, even in periods of harsh or uncertain economic climates.

Jan 1, 2014

By A. R. Barnes, A. F. Newall

Keywords: Pyrometallurgy, furnace, smelting, spinel, PGM, phase diagrams As Merensky reef ores are replaced by UG2 ores, chromium levels in PGM smelting furnace feeds have steadily increased. Increased chromium levels lead to operating problems. Attempts to increase the chromium solubility in the slag by a variety of techniques create other difficulties. The authors have developed a technique for removal of the chromium spinel interface along with the matte for subsequent separation outside the smelting furnace by utilising differential solidification in the ladle. The process has been patented internationally with support from the Innovation Fund.

Jan 1, 2006

By D. R. Hack

The complexity of commercial mining software has gained rapidly over the past decade as hardware developments have surpassed software capabilities at a staggering rate. Software users, recognizing the limitations of off-the-shelf applications, have adapted embedded scripting languages. Custom programming has always had a vital role in mine computing innovations, yielding a dynamic research environment in industry and academia. Fields such as industrial minerals can benefit from customization of existing software, since the majority of mine planning software was designed for large metal mines. Different customization approaches utilizing embedded scripting languages are presented, with examples of sand and gravel applications in development. Following implementation by Surpac and development of the Surpac Command Language, Tcl has been widely applied. Mintec introduced Python, also extensible and portable amongst various operating systems, for use in their MineSight products. In early 2000, Gemcom introduced the use of Microsoft Visual Basic for Applications, widely used customization tools for a decade. Datamine implemented a flexible multi-language approach, with all program commands and processes available through the COM Server Interface. This extends customization from the existing macro language to scripting in HTML, JavaScript, or any language that supports COM.

Jan 1, 2003

By Steven Rupprecht

"The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code or the Code) sets out minimum standards, recommendations and guidelines for public reporting of exploration results, mineral resources and mineral reserves in South Africa. The Code is being rewritten and updated, with work on-going since 2013. The revision is being undertaken to ensure the Code remains relevant, incorporates developments within the international mining industry and keeps abreast of technology. Some of the changes and their reasons are discussed. INTRODUCTION The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code or the Code) sets out minimum standards, recommendations and guidelines for public reporting of Exploration Results, Mineral Resources and Mineral Rreserves in South Africa. The Code is being rewritten and updated, with work on-going since 2013. The proposed 2016 update is not significantly different from previous versions of the Code. The revision is being undertaken to ensure the Code remains relevant, incorporates developments within the international mining industry and keeps abreast of technology. The Code sets out minimum standards, recommendations and guidelines for public reporting. However, reporting may be unclear, ambiguous, selective, obscure, distorted or unintelligible. Part of the purpose of the update is to provide better guidelines to Competent Persons (CPs) to ensure that the material information is being reported and that reporting is transparent in accordance with the guidelines of the Code. The information provided should, as required by the Code, be adequate to inform the “reader/investor or potential investor to make a reasonable and balanced assessment of the significance of the information”. The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) highlights the importance of the reporting Codes, as provided from a quote from their website (www.crirsco.com): The mining industry is a vital contributor to national and global economies. It is a truly international business that depends on the trust and confidence of investors and other stakeholders for its financial and operational well-being. Unlike many other industries, it is based on depleting mineral assets, the knowledge of which is important prior to the commencement of extraction. It is therefore essential that the industry communicates the risks associated with investment effectively and transparently in order to earn the level of trust necessary to underpin its activities."

Jan 1, 2015

By V. Labiouse, M. Jaboyedoff

GIS documents are of great interest for a quick and low-cost determination of areas endangered by rockfalls. They allow (i) the detection of potential instabilities from steep slopes and cliff areas, and (ii) the preliminary estimation of potential run-out areas by means of a so-called cone method. After the presentation of the tools used to compute these areas, the paper focuses on two methods developed for a preliminary hazard mapping, one at regional scale and the other at local scale. Mittels GIS-Dokumenten können von Steinschlag bedrohte Gebiete schnell und kostengünstig ermittelt werden. Die sogenannte Kegelmethode erlaubt die Erkennung potentiell instabiler Zonen von Steilhängen und Felswänden sowie eine erste Einschätzung der möglichen Reichweiten. Nach der Vorstellung der zur Berechnung der bedrohten Gebiete benötigten Hilfsmittel stellt der Artikel zwei Methoden zur vorläufigen Gefahrenkartierung in lokalem und regionalem Maßstab vor. Les SIG sont très intéressants pour une détermination rapide et peu onéreuse des zones affectées par des chutes de blocs. Ils permettent une détection des zones potentiellement instables et une estimation sommaire des zones de propagation des blocs par une méthode dite des cônes. Après la description des outils utilisés pour définir ces zones, l’article expose deux méthodologies élaborées pour un zonage préliminaire du danger, l’une à l’échelle régionale et l’autre à l’échelle locale.

Jan 1, 2003

By F. Rwere, A. Masasire, P. Dzomba, M. Mupa

Accurate determination of platinum group metals (PGMs) and gold (Au) has always proven to be a difficult task, due to their low concentrations in platiniferous ores. The most common preconcentration technique used in analysis of these metals is fire assay with a flux containing nickel or lead. This technique can be improved by using co-collectors. Here we hypothesise that Fe, Co, and Cu can be used as co-collectors to enhance separation and preconcentration of PMGs and gold by fire assay. To test this hypothesis, geological exploration samples from Siyanda Union Mine (Northam, South Africa) were analysed by an inductively coupled plasma-optical emission spectrometer (ICP-OES) for PGMs (Pt, Pd, and Rh) and Au. A control sample (certified reference material AMIS 0426) was also analysed by the same technique. The PGM and Au recoveries from the control sample ranged from 83% to 105% for all three co-collectors, with relative standard deviations less than 10% for the control sample and 7% for the geological samples. The PGM and Au recoveries by Fe and Co co-collectors were modestly higher than that of the Cu-collector. These results indicate that Fe and Co are better co-collectors than Cu, presumably due to the loss of analyte when using Cu. Taken together, Fe and Co co-collectors can be viable alternatives for analysis of PGMs and gold using the fire assay method.

Jan 2, 2022

By E. S. Schubert

Keywords: co-generation, furnace CO-gas cleaning, disintegrator scrubber, Theisen In a closed, electric, reduction furnace, no oxygen enters the furnace from the surrounding environment. The off-gases are thus not ?burnt? and therefore contain a considerable amount of CO and H2. Traditionally these gases have been captured and burnt in a flare stack. Recent developments have led operators of such furnaces to revise this strategy and to consider utilising these gases as a fuel for gas-fired generator sets to produce electricity, thus becoming more energy efficient. On 31 March 2010 the new emission standards, in accordance with the Air Quality Act, Act 39 of 2004, were promulgated. The minimum emission standards according to the act require that the particulate matter emissions from the primary fume-capture systems on closed furnaces for ?new plants? in ferroalloy and calcium carbide production not exceed 50 mg/Nm³ and 25 mg/Nm³, respectively. By implementing co-generation, the producer automatically complies with the new environmental emission standards for an off-gas. As much as 30% of the electrical power cost, which is set to double in the near future, can be saved by partly generating one?s own electrical power. In December 2010, the National Treasury published a discussion paper for public comment, one entitled ?Reducing greenhouse gas emissions: The carbon tax option?. Irrespective of how the tax is finally implemented, it will result in an increase of production costs in affected industries. This paper focuses on the characteristics of a furnace-off-gas cleaning system for closed ferroalloy smelters, characteristics that meet the requirements of both reducing solid-matter emissions and operating a safe and reliable gas plant.

Jan 1, 2011

By J. Kempken, R. Degel, J. Kunze, R. König

The FeNi technology is currently dominated by high-power submerged arc furnaces, often designed as smelter as "two-inline-solution". To achieve the intended high efficiency, state-of-the-art design in good correlation with ores and reductants and an integrated layout of the whole plant is of great importance. An introduction will be given to general aspects in the production FeNi, plus a detailed overview of design principles for large FeNi smelters and finally some examples of innovations and research projects concerning Fe-Ni.

Jan 1, 2007

By R. M. Tyler

The importance of the heavy mineral sands to southern African economic well-being cannot be over emphasized. The value of the worldwide titanium dioxide industry is estimated at $7 billion. Six out of eight of the world?s proposed new project areas are in southern and eastern Africa, and a seventh at Tamil Nadu in India is partly owned by a South African company, Kumba Resources. The HMS industry can be highly lucrative; its return on capital is the best in the mining industry. There are, however, problems, particularly in the smelting technology. The often considerable affect of mining on environmentally sensitive coastal dunes is also becoming increasingly important. The medium-to long-term demand for Ti-dioxide pigment and ceramic grade zircon appears very healthy. If, as predicted, the costs of producing titanium metal can be reduced, then there is huge potential for the metal. In summary, the HMS industry is an attractive one to be in, with good returns and generally manageable risks. New business opportunities and their economic implications for Africa are discussed.

Jan 1, 2004

By W. M. Jansen

In many mineral processing operations, the reported production figures for an accounting period may not make the best use of available data. While most of the mathematical approaches, such as check-in/check-out, mass balancing, used in effective metallurgical accounting strategies are well understood, the sources and magnitude of measurement errors generally are not. As part of the 'AMIRA P754-Metal Accounting and Reconciliation' project, a study was undertaken at the Northparkes copper/gold concentrator near Parkes, New South Wales to examine the data used in their concentrator metallurgical accounting system. This paper summarises the results of a detailed examination of the mass measurement systems around the concentrator as well as the primary sampling system used for grade estimation. The goal of this work was to develop practical techniques to quantify the error (ie both accuracy and precision) of the measured metal accounting information. With this information, statistical confidence levels for this data can then be calculated. If the errors are small, the effect of error in each piece of measured data can then be propagated to other calculated production figures such as recovery and feed grade using a statistical technique called `the propagation of error'.

Jan 1, 2007

By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By N. McEwan

Keywords: refractories, chromite, Marico This paper examines the role of refractory-grade chromite in refractories. The chromite deposit at Verref?s Marico Chrome mine is described. The refractory properties of chromite and their role in basic refractories are described. The properties and metallurgical applications of chrome-containing refractories are described and finally environmental issues associated with chrome-containing refractories are discussed.

Jan 1, 2011