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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

Analysis for pillar extraction potential (A-PEP) is an intelligent tool, which could be used as a preliminary output indicator when considering the secondary extraction of regional support pillars in the Witbank and Highveld coalfields of South Africa. The safe and economic extraction of underground coal pillars is of paramount significance and importance to the South African coalmining industry to ensure continuity of supply of this fossil fuel. Pillar extraction practices in South Africa have been responsible a significant proportion of safety and fatality statistics in relation to its relative output (less than 5 per cent of total South African coal production) and, as a result, research was undertaken in local pillar extraction operations and extended to similar operations in New South Wales, Australia to assess a way forward for pillar extraction in South Africa. It was found that, although little in the way of new technologies has emerged in this field in the recent past, significant contributions could be made in the field of risk analysis to obtain a generic design methodology for pillar extraction in South Africa. The resultant A-PEP tool to assess pillar extraction potential is based on certain physical, risk and economic factors, which combine to indicate operational success in terms of economic, health and safety attributes. At the time of A-PEP?s development there was alack of operating underground coal pillar extraction operations, which made it difficult to validate its applicability. Since then, however, A-PEP has been successfully tested and validated against two unique underground coal pillar operations, which is the discussion of this paper. One operation is situated in the Witbank coalfield and is extracting pillars, which are 20 years old and at a depth of 80 metres below surface, while the other operation is situated in the Highveld coalfield-which is extracting 6 month-old-pillars underneath a massive dolerite sill at a depth of 220 metres. A-PEP has shown that its predictive nature is consistent the workings at both operations, irrespective of their unique conditions, and as such it can be successfully used as a mine planning tool. The A-PEP mine planning tool thus represents a positive step toward an integrated approach to underground coal pillar extraction when considering legal and operational aspects, which could form the basis for legislative guidelines when considering the future of pillar extraction in South Africa.

Jan 1, 2005

By M. I. Mthenjane

"BackgroundThe paper discusses post-mining land use however, the essence of the topic is the emotional motivation behind the decisions related to mining investment and development. Therefore this is not a typical SAIMM technical paper about the science and techniques of post-mining land use. There are already numerous papers written and conferences held on this aspect of post-mine land use; the science is well understood, but the evidence of the practical application of the (environmental, social, and economic) science is sparse. At a recent conference held in November 2017 on the theme of ‘Science, Business, Society Dialogue – linking science, society, business and policy for the sustainable use of abandoned mines in the SADC region’, it was demonstrated through the delivery of several papers on the possible viable options of post-mine land use. The conference was structured in nine sessions, covering the following relevant topics:? Sessions 1 and 2: Nature and magnitude of the problem: raising awareness? Sessions 3 and 4: International experiences in remediation: case studies? Sessions 5, 6 and, 7: Technological solutions: converting liabilities into assets? Session 8: Implementing solutions: social and legal aspects? Session 9: Wrap up, lessons learned: conference resolution.Summaries of the key outcomes of the sessions are available for reference.The aim of this paper, accompanied by the video speech, is to provide a visualization of the possibilities of post-mine land use. Mining contributes approximately 7% to South Africa’s GDP - this is the lowest it has ever been and is attributable to both a diversifying economy and to poor mining and investment policy which has resulted in reduced investment in the sector. The objective of the paper is to highlight the opportunities, for succeeding and diversifying economic activity following mining and mineral extraction which can continue to sustain the livelihoods and wellbeing of communities and societies beyond mining.During mining, very few alternative and local economies develop. Dependence on mining and its value chain prevails until mining ceases. This idea is conveyed in Figures 1a and b."

Jul 1, 2019

By F. T. Cawood

This research report was produced in response to the release of the Mineral and Petroleum Royalty Bill. It involved are view of the mineral investment environments of selected countries in order to form an opinion on the appropriateness and competitiveness of the proposed royalty structure for South Africa. Many emerging countries have recently attracted a significant share of foreign investment, as a direct result of changes in policy. These are, by implication, the least risky and most favourable destinations for the ?investment dollar?. The five most competitive countries, namely Chile, Argentina, Peru, Mexico and Brazil have been identified as succeeding with their policy visions of creating favourable domestic investment environments. The investment rules of these countries served as a basis for the compilation of a Competitive Investment Framework (CIF). This is a template of best practice against which other investment environments, such as that of South Africa, can be measured. The framework indicates that mineral royalties should ideally be no more than three per cent, demonstrating that the regime proposed in the Royalty Bill is out of step with international best practice. Mineral royalties can never be viewed in isolation and in the assessment of the rates proposed in the Royalty Bill, one must consider the total taxation package. Such assessment appears in Section 5 of this report, demonstrating that there is reason for concern if National Treasury were to impose the rates stipulated in the Royalty Bill. The alternatives, conclusion and recommendations of the review appear in Sections 9 and 10. These are the result of independent analysis and assessment of the fundamental principles. It is done through the application of a Competitive Investment Framework that avoids the highly subjective and emotional views that often accompany a process like this.

Jan 1, 2003

By A. D. Pelton

The evolution of thermodynamic models of molten salts and slags, starting with Temkin in 1948, has culminated in today?s sublattice models. These modern models have permitted the development of large thermodynamic databases of model parameters, which can be used to calculate and predict accurately the properties of multicomponent solutions. The model parameters are mainly obtained by the critical evaluation and optimization of available thermodynamic and phase equilibrium data for binary and ternary subsystems. The models are then used to estimate the properties of multi component slags and salts from these assessed binary and ternary parameters. When used in conjunction with thermodynamic databases for solids and solid solutions (salts, oxides, sulphides, metals, etc.), other liquid solutions (such as liquid metals),and gases, these databases permit the calculation of complex multiphase equilibria in multicomponent systems, with applications in a wide variety of industries. These calculations can be performed with general commercial software for Gibbs energy minimization, which can also be incorporated into process simulation software packages. Keywords: slags, salts, solution models, thermodynamics, phase diagrams, oxide systems, molten salts

Jan 1, 2004

By S Rupprech, T Lund, H Fourie, PH van Rooyen, NM Vegter

Rosh Pinah Zinc Corporation (Pty) Ltd (RPZC) operates an underground mine at Rosh Pinah in southern Namibia producing zinc and lead sulphide concentrates. It currently mines around 0.7 Mtpa run-of-mine ore containing around 6-10% zinc and 1.5-3.5% lead. As part of past exploration and current intensified exploration, a massive continuous low grade ore body was identified which grades at around 3% zinc equivalent. This ore body is near current mining infrastructure and could be amenable to bulk mining methods. In the present paper a concept is presented on how it could be exploited. As a precursor to exploitation of the low grade a number of enhancements are proposed for the current mining operations including: ? shortening load-and-haul distances by extending the conveyor raise further down the mine in a phased manner and back-filling of waste into mined-out stopes; ? use of mobile crushing plant at the crusher tip, and; ? installation of a system to allow scoops to load directly from stopes into ore passes close by combined with truck loops to haul from these ore passes to the crusher tip. To exploit the low grade ore body the following concepts are proposed: ? open stope mining from two areas at a total rate of up to 2 Mtpa; ? underground pre-beneficiation of mined low-grade ore near the stopes using either dense medium separation or X-ray sorting; ? pre-beneficiated tails back-filled to mined-out stopes and; ? pre-beneficiated product transported to surface by linking into proposed run-of-mine conveying system.

Jan 1, 2007

By A. Ebrahimabadi

Roadheaders are very versatile excavation machines used in tunnelling, mine development, and mine production for soft to medium strength rock formations. Performance prediction is an important factor for successful roadheader application and generally deals with machine selection, production rate and bit consumption. Among many different parameters, brittleness is also one of the material properties related to breakage characteristics and can be used as a cuttability parameter from a mechanical excavation point of view. The main objective of the research study is to contribute the brittleness of rock excavated to construct a new empirical equation for predicting the performance of roadheaders in different material and operational conditions. In this regard, a new performance prediction model for medium duty roadheaders based on a brittleness index (BI) is presented. In this study, rock mass brittleness index (RMBI) is defined in order to investigate the influence of BI on roadheader performance. RMBI is an index which can be used to relate the intact and rock mass characteristics to machine performance. Results demonstrated that RMBI is highly correlated to instantaneous cutting rate (ICR) (R²=0.94). Moreover, through the further analysis and normalization, the pick consumption index (PCI) was introduced as a parameter having a good relation with pick or bit consumption rates (PCR) (R²=0.79). Finally, the new predictive models for ICR and PCR showed very good correlations with the actual measured values. Keywords Performance prediction, roadheader, brittleness index, mechanical excavation.

Jan 1, 2011

By W. P. Roux

Owing to decreasing high-grade ore reserves, there is a need for better understanding of the jigging process to improve the recovery efficiency of finer, lower grade material. The use of positron emission particle tracking (PEPT) was examined as a technique to study the motion of iron ore particles inside a laboratory batch jig. PEPT is a non-invasive method that can provide three-dimensional kinetic data on a particle in laboratory-scale processing units and has been successfully used to study mills, hydrocyclones, and flotation. Experiments were conducted to determine whether PEPT would be a viable technique to study iron ore jigging and what valuable information could be obtained. The results indicated that detailed information on the stratification rate of a particle could be obtained, with adequate resolution to track the particle?s movement through an individual jig pulse.

Jan 1, 2014

By P. G. Gresse

The Orange-Vaal River system is known to be the primary secondary source for alluvial diamond deposits in the northern Cape and along the west coast of Namaqualand. The higher order sources for diamonds contained within this system are still not defined entirely to satisfaction, but certainly include kimberlite pipes exposed in the catchment regions of these rivers. The focus of alluvial diamond mining along the Orange-Vaal system recently changed from the traditional areas in the upper catchment regions?the Barkly West, Christiana, Bloemhof, Wolmaranstad, Schweizer-Reineke region, and the lower regions near the mouth of the Orange River at Baken, Alexander Bay and Oranjemund, to the area between Douglas and Prieska?the so-called mid-Orange region (Figure 1).

Jan 1, 2003

By L. A. Cornish, S. N. Prins, R. Süss

The work is being done using the Thermo-CalcTM software, and the database is being built up by obtaining good thermodynamic descriptions of all of the possible phases in the system. The database supplied did not cover all of the phases, and these had to be gleaned from literature, or modelled using experimental data. Similarly, not all of the experimental data were known, and where there were gaps or inconsistencies, experiments had to be undertaken. A preliminary version of the database was constructed from assessed thermodynamic data-sets for the binary systems only. The binary descriptions were combined allowing extrapolation into the ternary systems, and experimental phase equilibrium data were compared with calculated results. Very good agreement was obtained for the Pt-Al-Ru and Pt-Cr-Ru systems, which was encouraging and confirmed that the higher-order systems could be calculated from the binary systems with confidence. Since some of the phase models in databases were different, these phases had to be remodelled. However, more work is ongoing for information concerning the ternary phases present in the Al-Cr-Ru, Pt-Al-Ru (two ternary compounds in each) and Pt-Al-Cr (possibly more than three ternary compounds) systems. At later stage of the work, problems with the thermodynamic descriptions of the Cr-Ru and Pt-Cr binary systems were found. A programme of experimental work to overcome these has been devised, and is being undertaken. Keywords: Pt-based alloys, phase diagram calculations.

Jan 1, 2006

By M. Kumral

The efficiency of an ore-processing unit depends on the consistency of the characteristics of raw material entering the plant. When the mined ore is highly variable in quality, the only way to ensure consistency is to homogenize the ore prior to feeding to the processing plant. The homogenization can generally be achieved by the bed blending operation. Given that the stockpiling and reclamation processes are very expensive, it is necessary to design the process in such a way as to minimize variabilities of specified properties of raw material. In this paper, for alternative stacking types, optimal stockpile geometry is found in three stages: First, stockpile input is simulated by sequential Gaussian simulation, and then the variance reduction ratios (VRR) as a criterion of stockpile efficiency are calculated for various stockpile geometry scenarios by a stockpile simulator written in FORTRAN. Second, multiple regression analysis is performed to model the VRR by the use of stockpile length, the number of layers and stacker speed as the independent variables. Finally, the model is an optimization problem. Decision variables are the stockpile length, the number of layers, stacker speed and stacking type. The genetic algorithms (GA) are used to minimize the VRR. The approach was demonstrated on data from an iron orebody. The problem was to reduce fluctuations of iron, silica, alumina and lime contents in the stockpile output. The results showed that the approach could be used for the bed blending design efficiently. Keywords: bed blending design, multiple regression analysis, genetic algorithms, iron ore, content fluctuation

Jan 1, 2006

By B. Schoevaerts

The ever-increasing depth of mineral extraction presents a challenging environment for hard-rock underground mines. High in situ stresses and associated seismicity with potential rockburst hazards are the major decisive factors contributing to the choice of a ground support regime. Conventional ground support systems, designed primarily for static loads, are not always capable of providing safe working conditions for underground personnel in seismically active mines. Systems specifically developed to resist dynamic loading and allowing for larger deformations are therefore preferred alternatives. High-tensile chain-link mesh has a proven record of successful use in open cut operations in various rockfall barrier installations due to its high energy absorption capacity. It has also been used in underground operations in various parts of the world. Its application in South African underground mining, however, is limited due to the high labour intensity. This paper describes a method of mechanized installation of a chain-link mesh as evaluation at Gold Fields' South Deep Gold mine situated some 45 km south-west of Johannesburg. A purpose-built mechanized roll mesh handler, developed in Australia, was used in this trial. The handler is compatible with all standard multi-boom underground drill rigs and is operated utilizing the hydraulic circuit normally used for the feed arrangement. A number of key performance indicators have been specified as success criteria by Gold Fields: ? A 30% faster installation compared to the conventional methodology ? The mesh should sustain any blast damage when applied to the blasting face ? No unravelling of the mesh when cut ? No failure of mesh under normal conditions ? Reliability of the MESHA® installation handler (availability >90% ? Compatibility of the MESHA® installation handler with AC 282 boomers. Although the energy-absorbing mesh combined with yielding rockbolts is a ground support system of choice for rockburst-prone conditions, the operational upsides recognized during the trial imply that this product can also be competitively used in less demanding ground conditions where weld mesh or shotcrete are customarily used as a primary surface support.

Jan 1, 2012

By Pekka Taskinen

Advanced optimizing control of the fluidised bed zinc roaster has been in use for an extended period at Boliden Kokkola and the implications are seen as extended bed stability, increased throughput and far better on-line availability. The roaster furnace control system developed is based on a dynamic and predictive furnace model, with parameters determined experimentally at the site. The controller maximises the concentrate feed and keeps the furnace operational parameters inside limits given by raw material mix and equipment constraints. The products of a zinc roaster, calcine, sulphur dioxide and the side products, such as mercury, meet gradually more stringent requirements, in particular as to their assays and total recoveries in the process chain. The end users of sulphuric acid in northern Europe, among others in the pulp and paper industry, require mercury levels much less than the conventional 0.2-0.4 ppm Hg. Therefore, secondary de-mercurising circuits have been used over the last five years for further cleaning the SO2 stream allowing production acid grades with less than 0.08 ppm Hg.

Jan 1, 2008

By Jerry Gagnon, Matt Burr, Dave Evans, Timothy Ellis, Davies Kakengela, Abbas Mirza, Larry Webb, François Leclercq, Andrew Johnston

Lead-based alloys are the primary anodes used in electrowinning from sulphate-based aqueous systems. Lead anode technology has evolved over the years, migrating from pure lead and lead-antimonial alloys to the present day lead-calcium-tin alloys for copper electrowinning and lead-silver alloys for zinc electrowinning. It has also migrated from cast to rolled microstructures in search of improved mechanical properties and higher corrosion resistance. Although great strides have been made in the development of new alloys and production processes, the industry still has unresolved issues related to untimely corrosion which limits anode life and may lead to higher contaminant levels in the metal being produced. Lead anodes corrode because of the difference in the chemical/electrochemical potential across the microstructural features of an anode. Given a very high purity material, we find that the grain boundary areas corrode significantly faster than the rest of the grain. The desire to minimize grain boundary corrosion by a balance of alloying element selection and microstructural design allows the grain boundary area to be engineered. However, operational issues can lead to unexpected corrosion behaviours which we will discuss moving forward. The comments in this work, though directed toward copper electrowinning, can be extended to similar phenomena in other metals electrowon from sulphate media (i.e., zinc, nickel, cobalt, manganese). The lifecycle of electrowinning anodes is dependent upon electrowinning tankhouse operating conditions and maintenance of the anodes, including cleaning and straightening. This paper will focus on the operational aspects of maximizing the utilization of lead electrowinning anodes.

Jan 1, 2015

By J. Madias, E. Benavidez, E. Brandaleze, L. Castella

Knowledge of the physical and chemical properties as well as the behaviour of the mould fluxes during melting, important in order to improve continuous casting operations. Lubrication and control of heat transfer in the mould are the more relevant functions of these materials. Values of physical properties like viscosity and surface tension at melting range temperatures are required, as much as the thermal behaviour under process conditions. The heat extraction from the liquid steel has an important effect in the final quality of products. Mould fluxes are constituted by different oxides, and may form glasses and crystal phases during cooling. The solidification rate and the chemical composition determine the proportion, type and crystalline morphology, which are responsible of the thermal transfer processes. In this paper, viscosity values are reported in the melting range temperatures calculated by means of the Riboud model and compared with fluidity results obtained by the inclined plane technique. Also the linear expansion of the mould fluxes at high temperatures was determined by dilatometry. The crystallization in two different fluxes was determined by DTA tests and correlated with the basicity index. Crystal phases were evaluated by scanning electronic microscopy on quenched samples at 1300°C. This information is relevant to increase the knowledge on the peritectic steel grades casting process in order to improve its quality. Keywords: mould fluxes, heat transfer, crystal phases, peritectic steels, thermal properties.

Jan 1, 2004

By R. Falcon, P. den Hoed, A. Luckos, R. Erasmus, V. du Cann, D. Comins

Carbon as a reductant, additive or filler is an essential element in the processing of metallic ores and the manufacture of iron and steel in the metallurgical industry. In most cases, the element carbon is derived from coal and its carbon derivatives. The properties of carbon required for the different processes in each metallurgical sector vary significantly and, for this reason, matching the correct carbon product for each specific process has become an important if not vital function in all sectors of this industry. This selection process, however, has become increasingly difficult. In many cases, the substitution of new products, despite being similar in all relevant chemical specification characteristics to previous products, has resulted in different performance properties relative to that expected. Under these circumstances, the prediction of performance of unknown carbon products has become fraught with difficulties unprecedented in the past. In order to initiate an investigation into addressing these issues, a test case was selected for indepth study the results of which are reported in this paper. The case concerned the use of a specific carbon feed in a conventional submerged arc furnace which gave rise to an unprecedented amount of unreacted or only partially consumed residue trapped in the frozen slag on the refractory walls of the furnace. During the course of these investigations, different advanced analytical technologies were employed including, inter alia, Raman spectroscopy, surface dimensional tests, organic petrology and various thermal reactivity factors. All results have been integrated into a multidisciplinary assessment presented in summary in this paper. Based on the above, and previous experience, the concept of an all-embracing 3-D coal-carbon ?framework? is briefly introduced. This approach has succeeded in obtaining greater depth of knowledge and a better understanding of the issues at stake with specific reference to the organic composition, structure, texture, internal surface area and consequent reactivity of the carbon materials concerned. In consequence, it would now appear that various properties of relevance to the metallurgical industry may be predicted with greater precision than has hitherto fore been possible.

Jan 1, 2004

By A. Patri, D. S. Nimaje

Wireless sensor networks and wireless communication systems have become indispensable in underground mines. Wireless sensor networks are being used for better real-time data acquisition from ground monitoring devices, gas sensors, and mining equipment, whereas wireless communication systems are needed for locating and communicating with workers. Conventional methods like wireline communication have proved to be ineffective in the event of mine hazards such as roof falls, fires etc. Before implementation of any wireless system, the variable path loss indices for different workplaces should be determined. This helps in better signal reception and sensor node localization, and also improves the method by which miners carrying the wireless devices are tracked. This paper proposes a novel method for determining the parameters of a suitable radio propagation model, which is illustrated with the results of a practical experiment carried out in an underground coal mine in southern India. The path loss indices, along with other essential parameters for accurate localization, have been determined using the XBee modules and ZigBee protocol at 2.4 GHz frequency.

Jan 1, 2015

By Y. Jin

Magnesia ramming materials have been widely used in China instead of magnesia bricks as furnace lining materials of ferroalloy refining furnace. The paper introduces the development of the ramming material, recounts its chemical composition, physical property and application characteristics. Because of its high MgO contents and fine sintering property, the ramming furnace bottom has the properties of good refractory, monolithic construction and thermal shock resistance. The changes in mineral composition and furnace tearout characterization show the reasons for the bottom?s long service life. The obvious benefits are widely achieved, the annual saving cost in refractory is about 2 millions US dollars.

Jan 1, 2004

Following a short review of selected literature, a back analysis of stress measurements of stress regeneration in a closed mini-longwall is shown. The agreement is good, lending confidence to the parameters used in the proposed numerical model. Foundation yielding was modelled in the absence of total stope closure. A ?Prandtl? wedge was formed, coinciding with the yield point of the pillar/foundation system. Some theoretical work is used as a starting point for the formulation of a new design methodology for strike or dip stabilizing pillar/foundation systems in deep level goldmines. The existing guideline for the stability of foundations (APS< 2.5UCS) is critically examined. Finally, the advantages of the new approach, and the work required to substantiate the proposed new design methodology, are outlined.

Jan 1, 1998

By Grant Loveday, Vincent Dieudonné, Andrew Jonkers

Bateman Minerals & Metals supplies the APIC Technologies which include the under-bed air-pulsed APIC jig and related technologies such as the JigScan controller and advanced mathematical models of the jig process. Bateman have developed a methodology for predicting process performance for jigs from simplified testing and modelling, based on batch equipment matched to industrial designs. Batch tests conducted on laboratory scale air-pulsed jigs can process small batches of material, such as those obtained from drill core samples. The novelty comes from using an advanced jig process model, ASTRAD, to link the results of batch and continuous jigs. The batch jig presented as a novelty in this paper has been designed to be hydraulically equivalent to the full-scale APIC Jig, allowing the generation of equivalent pulse shapes and using JigScan controller. Lump and fine ferrous ore material have been separated in this unit and any feed >1mm can be tested and extracted. The global test procedure and further modelling focus on the stratification of material, with emphasis on key aspects such as pulse shape, feed characteristics and residence time. The splitting of rejects from concentrates is itself more difficult to reproduce in batch jigging, however the ASTRAD model includes a separation imperfection module, and the APIC Technologies have extraction systems adapted to each type of material. Air pulsed batch jigs are available in several locations and are relocatable. They have been used to treat samples from Australia, South Africa and India as part of studies into ore processing using jigs. Each test layer is available for various physical testing procedures (density and chemical analyses). Test-work is performed on a case by case basis, and analysed using an advanced model ?now available over the internet. Some fundamentals of air-pulsed jigging are recapped along with some of the features of APIC jigs. The process of designing a ?hydraulically equivalent? batch jig test is then described. Some results from jigging tests are presented plus the results of the ASTRAD advanced jig model, which was first developed at the JKMRC with ferrous ores and coal and is now being supported and further developed and utilised by Bateman.

Jan 1, 2006