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By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for an expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated 'risk' via the discount rate and other assumption contingencies around gold price expectations, operating parameters, etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Cyest Carbon Modelling Technology platform, and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. a 44 percent chance of project finance loss.

Jan 1, 2013

By R. Loots

High temperature creep resistant alloys are used in power plants as steam pipes and headers where they have to withstand super heated steam temperatures of up to 600ºC for the lifetime of the plant. Frequently certain portions of pipes may be subjected to excessive temperatures and consequently suffer from creep damage. Damaged portions then have to be replaced by welding new steel to the service exposed steel. Such welds will have to be subjected to a post weld heat treatment (PWHT) to relieve residual stress. During such a PWHT it is then possible for the steel to crack in the heat affected zone (HAZ) by what is known as Reheat Cracking (RHC), also known as stress relief cracking. For the present purpose the RHC susceptibility of service exposed steel was compared with that of new steel by reproducing the temperature cycle to which the HAZ will be subjected during welding in a weld simulator. This was followed by PWHT where the influence of residual stress was studied by applying a constant stress to such a weld-simulated specimen in a creep testing machine. A sharp spiral was machined along the length of the cylindrical specimen to simulate the presence of a possible weld defect. In this way it is possible to subject all portions of the simulated HAZ to the same stress intensity. For the purpose of the investigation 1/2Cr-1/2Mo-1/4V steel known to be susceptible to RHC was chosen. During testing a constant tensile stress was maintained while the temperature was increased to follow the thermal cycle prescribed for PWHT. It was found that the new steel in all instances failed by RHC along the grain boundaries in the high temperature heat affected zone. In the case of the service exposed steel the creep strength of parent metal was lower than that of new steel as a result of exposure to a steam temperature of 540°C for about 15 years. Consequently, all of the failures during testing occurred in a ductile manner by necking outside the HAZ rather than by RHC. When service exposed steel is welded to new material, it is expected that the creep strain associated with stress relaxation will mostly be concentrated in the parent steel outside the HAZ. Accordingly, it should probably not be necessary to make any extra allowance for reheat cracking during repair of steam pipes manufactured from 1/2Cr-1/2Mo-1/4V steel other than that applicable for welding new steel.

Jan 1, 2004

By F. Russo-Bello

TauTona Mine (the renamed Western Deep Levels East) is using a longwall mining method with stability pillars to extract the Carbon Leader Reef at a depth ranging from 2097 metres to 3456 metres below surface. Seismic activity and the complexity and hazards associated with negotiating geological features at great depth pose the most severe hazard to deep level gold mining in South Africa. It impacts negatively on safety and the profitability of the mining. The critical success factors in longwalling at depth are: ?Sound mining strategies and face shape control ?Ensuring follow behind development infrastructure is kept up to date ?Support system design as a strategy to effectively limit the serious effects of damaging seismicity. This paper describes the following: ?Implementation of the required mining strategies ?The evolution of a new stope support system and problems associated with its development and implementation. How this support system was adapted for the successful negotiation of major geological features with known seismic potential and problems encountered ?Current initiatives to optimize follow behind development infrastructure ?Current initiatives in designing a new gully support system and problems experienced with its development and implementation. Finally, this paper will deal with the way forward, briefly covering areas like the above-mentioned gully support system, the proposed phased introduction of technology, and the use of alternative mining layouts.

Jan 1, 2000

The extraction of minerals and coal at greater depth, employing higher-powered machinery to improve production levels, imposes an increased burden on the ability of a ventilation system to maintain an acceptable mine climate. Hence, mechanical mine cooling systems are often adopted, which can be expensive in terms of both their associated capital and operating costs. Consequently, in order to optimize the total mining costs, it is essential to provide the mine operator with a method with which to determine the most cost effective and efficient mine cooling system. In a previous paper1a novel energy analysis employing the concept of exergy was proposed and applied to cooling systems applied to two conceptual model mines, representative of UK deep coal operations, and their resultant subsurface thermal environ-mental conditions predicted. This paper presents an analysis of the results obtained from the application of this novel technique to assess the performance of various cooling systems applied to a current UK colliery that is experiencing climatic problems due to its depth and highly mechanized production and development workings. To perform this analysis, ventilation and climatic data collected at the case study mine were used to construct balanced mine ventilation and climatic network models to replicate the subsurface environment. Where air conditions exceeded specified climatic limits within identified climatically control zones, mechanical mine cooling systems were employed. A number of cooling system configurations were applied to these model to investigate the potential to satisfactorily regulate the thermal environment. The heat energy transferred out of the air stream by the various cooling methods was absorbed using a variety of chilled water systems, which were designed to operate at various water flow rates and temperatures. Models of various cooling system were developed and applied to control the underground climate within this mine network to within pre-set climatic limits. The results of a comparative analysis of the energy transfers that were produced by the application of the different cooling systems are presented in the form of exergy performance indices. The results produced by simulation models constructed to represent chilled water distribution networks to supply the various air coolers, are designed and balanced. The results of the exergy analyses applied to the operation of the various chilled water pipe networks are discussed and used to assess the exergetic performance of the application of each proposed cooling system to the mine ventilation network.

Jan 1, 2004

This paper reports on recent field observations on the performance of support systems under different corrosion environments in Canadian underground mines. Phenomenological data are used to gain a better understanding of the main causes of corrosion in underground metal mines. Preliminary field data collected from five metal mines have been complemented by atmospheric and water sample analysis as well as fractography and metallographic studies. This has identified dominant factors that control the corrosion of support systems. The data are analysed in order to develop a support strategy for mines operating in corrosion environments.

Jan 1, 2008

By Y. He

Early research showed that the separation of particles based upon their density was not possible in steadily rising air streams. The terminal velocities of moving spheres are determined by their aerodynamic characteristics. This prevents particle separation by density in standard air classifiers. Passive pulsing air classifiers have accelerated airflow in certain regions, which achieves density-dominant separation. Numerical simulation of airflow within passive pulsing air classifiers was done to estimate airflow patterns near a damper. Analysis of those results shows the significant acceleration of the airflow above the damper. Laboratory trial separations have shown that passive pulsing classifiers are superior to standard air classifiers. Keywords: pulsing airflow, passive, simulation of airflow models, acceleration effect, density

Jan 1, 2005

By G. Swan, E. Nordlund, P. Zhang

"SynopsisThe most widely used support design damage criterion for rockburst-prone mines is based upon kinetic energy, which is proportional to the square of the ejection velocity and is commonly expressed in terms of peak particle velocity (PPV). Field monitoring and back-analyses have shown that ejection velocities of the order of 10 m/s and higher can result from seismic events of moderate magnitude. Such velocities are much higher than those predicted using PPV obtained from scaling laws. It has also been found that the peak ground motion (i.e. PPV) on the surface of an excavation is preferentially amplified (by four- to tenfold) compared to the motion in solid rock at a similar distance from the source. However, the wave propagation and interaction processes involved within the fractured rock in generating high ground motion are very complex and are not well understood at this time.In this paper, velocity amplification was investigated by modelling the dynamic interaction between fractured rock and a free surface using a 2D discontinuum-based numerical program, UDEC (Universal Distinct Element Code). A 1D model with a fractured zone was used to represent the fractured rock. Velocity amplification, quantified by PPV, predicted at the free end of the model was 2.0–3.6 times higher than the input velocity. It was found that the wave frequency, fracture stiffness, fracture spacing, and thickness of fractured zone are the main factors that affect the velocity amplification. The results have proved that the interaction of the seismic wave and multiple fractures near the free surface strongly influences the ground motion.IntroductionSince mining-induced seismicity is almost inevitable in deep mines, ground support is generally employed to mitigate the risk of seismically-induced damage. The most widely used support design criterion for seismicallyprone mines is one that seeks to maximize the absorption of the kinetic energy (plus potential energy if a gravity component is considered) of key rock blocks. Based on this criterion, design methods for rock support were first proposed by Wagner (1984) in South Africa and later improved, among others, by Roberts and Brummer (1988) and Kaiser et al. (1996)."

Jan 1, 2015

By John E. Leitch

The cost of corrosion as measured by such cost components as the renovation or replacement of coated steel, or the use of expensive coating systems on steel, is considerable. Extrapolating from figures for the USA would place the overall cost of corrosion for South Africa as a figure of the order of magnitude of something over 1% of the GNP. This is a sizeable amount, of which costs associated with atmospheric corrosion would be a significant proportion. The corrosivity of an atmosphere can be defined as the ability of the atmosphere to cause corrosion in a given metal or alloy (International Standards Organization [1]). The ISO Standard 9223 specifies the key factors in the atmospheric corrosion of metals and alloys, and defines categories of corrosivity on the basis of these factors. Prior to the publication of that ISO standard, Callaghan published the results of his twenty-year exposure programme and his excellent corrosivity map of Southern Africa [2]. The present author published updates of the corrosivity map in 1999 [3] and again in 2003 [4]. The summary of the individual areas of corrosivity around Southern Africa was published in the latter paper, and is reproduced here as the following TABLE 1. Of significance in TABLE 1 are the numerous regions of very high corrosivity (C5 or beyond), particularly the rural West Coast shoreline, the North East Coast (KZN) shoreline, and the coastal cities Cape Town, Durban and Richards Bay. The corrosivity map as published is obviously based on much extrapolation as only a small number of points have been measured. During the past three years further measurements have been made, mostly however at the same sites in order to give greater reliability and to monitor long-term trends with changes in pollution. These two aspects are incorporated in this update. There has become available a greater amount of air pollution data for centres in South Africa than was the case some years ago. In this present paper the pollution data are used to extrapolate the corrosivity over areas where little or no direct corrosivity measurement has been made. This methodology is described in ISO 9223.

Jan 1, 2006

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 S. Sun

The equilibrium distribution of Cu, Fe and Ni between Cu-Ni-Fe mattes and Pt alloy was measured as functions of the sulphur partial pressure (pS2), oxygen partial pressure (pO2),temperature and Fe content of the matte. The distribution ratios of Cu, Fe and Ni between matte and alloy were independent of oxygen pressure when the pS2was fixed at 2.5x10-5atm and pO2was varied between 10-15and 10-12atm. The distribution ratio of Cu, Fe and Ni increased as the sulphur partial pressure increased. The Cu and Ni distribution ratios decreased with increasing temperature and the Fe distribution ratio increased slightly over the temperature range of1350?1500°C. For mattes where the proportions of Cu and Ni were kept constant, the distribution ratio of Cu increased as the Fe content in the matte increased. The Fe and Ni distribution appeared to be independent of the iron content in the matte and had a value of 1.2 and 1.6 respectively. The activity of Cu, Fe, Ni in the matte was calculated using a regular solution model for solid Pt-Fe-Ni-Cu alloy. The activity coefficient of Cu, Fe and Ni decreased as pO2and pS2increased.The activity coefficients also appeared to be independent of the Fe content and temperature over the range of 36 to 54 wt% iron and 1350 to 1500°C respectively. Keywords: activity, alloy, matte, thermodynamics

Jan 1, 2004

By I. K. Craig, F. R. Camisani-Calzolari

Defects which occur at the surface of a continuously cast slab impede the throughput of final product, because an extra stage in the process is required to grind the defects away before further processing can take place. Defect prediction and the minimization of the occurrence of defects is required. The use of two models to define the defect propagation is explained. Both models are derived using system identification techniques such as auto-regression with exogenous input(ARX). One model is used to determine the effect of manipulated variables such as casting speed and measured disturbances such as mould level on temperatures within the mould. The other isused to determine or indicate the effect of the mould temperatures on the occurrence of defects such as transversal cracks. The latter model can be used to predict when the defects will occur and the former can be used to control the occurrence of the defects. Keywords: continuous casting, surface defect, control system, predictor, system identification, ARX

Jan 1, 2003

By F. M. L. Mulaudzi

Metal dusting is a corrosion phenomenon that occurs in strongly carburizing gas atmospheres at elevated temperatures. Reaction kinetics and product characterizations of Alloys 602CA and 800 were examined by scanning electron microscopy with energy dispersive X-ray analysis (SEM-EDX) and X-ray diffraction (XRD).The results showed that Alloy 602CA is more resistant to metal dusting than Alloy 800. Visual examination and SEM surface analysis showed that Alloy 800 suffered metal dusting attack after a relatively short exposure period. The amount of coke deposits increased on Alloy 800 with increased exposure from 96 to 336 hours. X-ray diffraction on the reacted surfaces identified graphite and austenite in both alloys and some iron oxides/spinel for Alloy 800.

Jan 1, 2012

The modelling of lithological domains is a critical step in mineral resource and reserve evaluation. Deterministic models rely on an interpretation of the available drill hole data and expert knowledge, but do not account for the uncertainty in the spatial extent of the lithological domains. Instead, probabilistic models based on conditional simulation can be used to map the probabilities of occurrence of the domains within the deposit, which reflect the uncertainty in their presence or absence at unsampled locations. The mineral grade model is then obtained by weighting the predicted grades associated with each lithological domain by the probability of occurrence of this domain. Such an approach accounts for the continuity of the grades proper to each lithological domain and for the uncertainty in the spatial extent of these domains within the deposit. An application to a porphyry copper deposit is presented. Keywords: spatial uncertainty; plurigaussian simulation; geological control; kriging; geostatistics.

Jan 1, 2007

By Chris Ringas

The safe operation of gas transmission pipelines is increasingly coming under the spotlight. Increasing environmental pressure is also forcing pipeline owners and operators to ensure the integrity of their pipelines. The integrity of a pipeline is usually determined using intelligent pigging, often referred to as In Line Inspection (ILI). However, in many cases, gas pipelines cannot be pigged for a variety of reasons. The National Association of Corrosion Engineers (NACE) has recently published Recommended Practice (RP) 0502, referred to as the External Corrosion Direct Assessment (ECDA) Methodology to assist pipeline owners with assessing the condition of pipelines that cannot be pigged. 2. External Corrosion Direct Assessment - NACE RP 0502 The ECDA Methodology is conducted in four phases as follows: ? Pre-Assessment ? Indirect Inspection ? Direct Examination ? Post-Assessment In the Pre-Assessment Phase, all the relevant historical and current data relating to the pipeline in question is reviewed. This covers pipeline, construction, soils/environmental, corrosion control and operational data. The aim of the Pre-Assessment Phase is to determine whether ECDA is feasible, and if so, to define the ECDA Regions and finally to select the Indirect Inspection Tools that will be used for each region. Typical overline techniques used for overline surveys include the following: Voltage gradient surveys ? DCVG or ACVG

Jan 1, 2006

Work undertaken in the field of cut-off grade optimization has not advanced much beyond the work undertaken by Lane in 1988. His definitive work is based on the calculus of the Net Present Value criterion which is the most widely understood, consistent, and appropriate method by which sequential cash flows arising from the extraction of mineral reserves from an exhaustible resource can be represented. Although the mathematics is not complex Lane’s method is not a widely appreciated or applied approach to maximizing the value of a mining operation through selection and balancing of operational cut-off grades. Three stages in a mining operation namely, mining, processing and marketing were defined by Lane and the economics of each stage are identified and isolated to provide an optimum cut-off for each stage. Points of intersection along the present value curves for each stage of a mining operation are used to identify balancing cut-off grades at points where the capacity of the mining, processing and marketing stages is fully utilized and the Net Present Value of the operation is optimized. Data that simulate a small, deep-level Witwatersrand-type gold mine with an average grade of 6 g/t Au and a logrithmic variance of 1.2,are applied to the model to illustrate the benefits of representing cut-off grades in terms of present value curves for different segments of a mining operation. Keywords: Cut-off grade, Net Present Value, grade-tonnage curve, balancing cut-off grade, mining, processing, marketing.

Jan 1, 2003

By L. Lehasa

The purpose of the project was to investigate the challenges faced by Khutala Colliery pertaining to underground road construction and maintenance. Furthermore the influence of these challenges on productivity and safety requirements were taken into consideration. The operating standards required for the construction and maintenance of the 2 seam road transport infrastructure was investigated, together with reasons why the standards of operating procedure are not met. The Code of Practice put in place by Khutala Colliery was used to view the standard operating procedures. Leading practices on underground road construction were researched. The project aims to discover the gaps that Khutala Colliery must bridge to implement enhanced practices with regards to underground road construction. During the period of study, observations were carried out to determine whether the road construction standards of operating procedure were being adhered to at all times for both road construction and road maintenance. Khutala Colliery has put in place a traffic management plan, which includes safety practices and work policies that must be adhered to while travelling on underground transport roads.

Jan 1, 2012

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 Peter W. Lotz

Contents of: ?Sampling for Cyanide in Metallurgical Processes? ?Sampling at process level of operation ?Sampling at environmental level ?Sample stability and integrity issues ?each citing possible objectives, practical example and reasons for surprises Overall recommendations on sampling plans and procedures to maintain sample integrity

Jan 1, 2005

By B. C. Viljoen

"SynopsisCommencement of the next phase of the Lesotho Highlands Water Project is a year or so away from becoming reality. Some 50 km of tunnels in the form of access adits, shafts, diversion tunnels, and main waterways will be constructed. Sprayed concrete will form an integral part of the temporary and permanent rock support systems that will be installed. Furthermore, the use of sprayed concrete as a final tunnel lining solution was proposed as a viable alternative to concrete linings in the feasibility studies that preceded the forthcoming implementation phase.The aim of this paper is to make the reader aware of all the sprayed concrete related issues that engineers tend to grapple with during the design and construction of tunnel projects and other underground works. Primarily, these issues would include selection of applicable design parameters, technical specifications, construction application methods, quality control and, most importantly in the context of final or permanent linings, the durability of sprayed concrete.The International Tunnelling Association (ITA) Working Group (WG) 12 has been tasked specifically to publish a set of recommendations on the Quality and Control of the Application of Sprayed Concrete and the Testing of Sprayed Concrete for Durability. These tasks were also further explored at the recent World Tunnel Congress (WTC 2015) that was held in Dubrovnik, Croatia at the end of May 2015.IntroductionSprayed concrete is presented in a variety of shapes, designs, forms, application methods and accompanying terminologies including shotcrete, gunite, pneumatically applied concrete, and the like. The International Tunnelling Association (ITA) decided to standardize on a single terminology, namely ‘sprayed concrete’, in order to simplify specification, interpretation of guidelines, and codes of practice."

Jan 1, 2015

By M. Sibanda

The diffusion of carbon in Co-5% Fe alloy was studied in a belt-type pressure system at temperatures of up to 1330°C and press loads or nominal pressures of 7 020 tons or 42±3 kbar. Under these conditions, this alloy is in the solid state. Discs of graphite and prealloyed Co-5%Fe were used to make up the diffusion couple. The diffusion coefficient increased with increasing press load due to the tendency of the low density graphite to dissolve in the metallic phase reducing the overall volume and increasing the density of the system. Furthermore, inhomogeneous plastic deformation may have promoted diffusion by creating defects in the alloy. Diffusion couples treated at atmospheric pressure exhibited graphite particles in the metal, while those treated at high pressures exhibited carbide in the form of Widmanstatten laths. Carbon analyses indicated increased carbon solubility with increasing pressure. This was confirmed from calculated high-pressure phase diagrams.

Jan 1, 2005