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By G. V. R. Landman

It is self-evident that economic pressure demands that today?s mines stay ahead and stay competitive. The challenge, however, isto find fresh approaches to the pursuit of efficiency and operational effectiveness. Rather than focusing on individual activities in isolation, a process that can lead to poor investment decisions affecting other critical areas of operation, a key concept is optimization of the whole value-adding process of mining. This concept is often called ?mine to mill?. Whereas it is never easy to establish optimal conditions across a whole mining operation, the quality and consistency of the blasted rock strongly affects all operations. In many instances an inability to control rock breaking has been unchallenged, leading to significant investment in time and money to manage the consequences of poor and/or inconsistent rock breaking. This paper discusses how electronic initiation systems can play a major role in optimizing the whole mining operation. Electronically programmed detonators provide not only the ability to tightly control a key parameter, namely timing, but also the opportunity to extract blast data for a continuous improvement process. The ability to alter predictably, using feedback from the downstream processes, blasting variables such as fragmentation, throw, wall stability, and vibration, is a huge advantage. The current understanding of the effect of timing, accuracy, and scatter on rock fragmentation is reviewed and offers reasons why there is significant progress in controlling blast results. Two case studies are examined, which demonstrate the benefits of the technology on the economics of the operations under review.

Jan 1, 2010

By Godofredo F. Barrios

For years urethane screen surfaces have been used in a wide range of wet screening applications where openings from as fine as 100 microns and coarser have been used. The purpose of this paper is to expose the reader to new developments in both screen surface and screening equipment technologies which allow an end user to consider urethane screen surfaces for fine screening applications. These technologies allow an end user to use the inherent advantages of urethane with regards to wear resistance while also realizing the benefits that a high oper area urethane screen surface can bring. These benefits include non blinding characteristics and feed capacities that which rival that of traditional stainless steel surfaces. The paper will highlight the features of this patented urethane screen surface technology and the screening machines they are used in conjunction with. There will also be a presentation of case studies of commercial installations where these technologies are utilized. These case studies are from the base metals industry therefore relevance to the conference is direct and not inferred. Included in the paper will also be constraints which must be taken into account when considering urethane screen surfaces such as temperature and chemical attacks. This paper will expose potential end users to a possibility of using screens to achieve extremely accurate size separations in applications where screens were previously not considered. The paper will explain and demonstrate that prior concerns of screen surface blinding, high screen surface consumption rates and large screen surface area requirements can be eliminated by proper utilization of high open area urethane screen surfaces.

Jan 1, 2007

By W. Abdellah

The purpose of this paper is to establish a qualitative method to estimate the risk level (e.g. rating and ranking) resulting from mining activity. Risk is the product of two factors: probability of failure and cost of consequences. A resultant assessment scale matrix is then used to assign a risk index value which is directly proportional to the potential for excavation instability. A case study, the No. 1 Shear East orebody at Vale?s Garson Mine in Sudbury, Ontario will be examined. A three-dimensional, elastoplastic, finite difference model (FLAC 3D) is presented for a mine development intersection situated 1.5 km below ground surface. The developed assessment scale matrix is used to estimate risk index for intersection (2981) located on 5000 level. The results are presented and categorized with respect to risk-index value, probability of instability, cost of consequence, and mining stage.

Jan 1, 2014

By H. E. Bartlett

In the operation of some flotation plants treating platinum ores it was found that there were imbalances between the inputs and outputs. The inputs and outputs were sampled as slurries and it was determined that the imbalances arose from biases in the sampling, despite the samplers having been designed according to well-established rules. The launders feeding the sample cutters, and the sample cutters themselves were redesigned using finite element analysis to model the flows. A new set of design rules were formulated. The application of a Components of Variance Analysis, to determine the variance of primary and secondary sampling and of analysis in the lab for a concentrate is presented to illustrate the need for frequent sampling of process streams.

Jan 1, 2002

By D. Chetty

The characterization of platinum group minerals (PGMs) from concentrator flotation circuits provides valuable information towards understanding PGM recovery under given milling and flotation conditions. Additional mineralogical characterization also provides information on ore variability, which may affect recovery. Considering the low grades involved, automated scanning electron microscopy (SEM) characterization of PGMs has enabled relatively quick analyses, compared with older, time consuming and less accurate optical microscopy methods. Over the years, parameters, such as species, size distribution, liberation, gangue and base metal sulfide (BMS) associations, have been used to characterize the PGMs in a process mineralogical context, to aid metallurgical interpretation. This paper considers whether flotation indices determined for PGMs can be empirically validated, using initial results from analysis of PGMs in a concentrate bank from a South African concentrator treating UG2 ore from the western limb of the Bushveld Complex. The aim is to determine whether floatability is adequately described by these parameters, or whether other mineralogical factors must be considered when assessing PGM floatability, and hence accounting for recovery vs. losses to tails. The data obtained to date, show that flotation parameters (including liberation index, BMS/gangue relationships and size distribution) have merits where large changes in PGM concentration occur, as observed in the first four cells of the concentrate bank. Larger data sets, however, are required to assess floatability, particularly where concentrate cell grades are similar, as observed in the last six cells of the concentrate bank. Furthermore, the floatability indices could be enhanced by the incorporation of selected associated gangue mineral information, chief amongst these being the content and mode of occurrence of naturally floatable talc and associated orthopyroxene.

Jan 1, 2009

By J. W. Joubert, R. C. W. Webber-Youngman, M. D. Budeba

"SynopsisCost estimation for surface coal mines is a critical practice that affects both profitability and competitiveness. New mines require these costs to be estimated using available information before a project begins. The competitive advantage of a new mine depends on it being both efficient and cost-effective. Low-cost producing mines have a higher chance of survival in a low-price environment than do high-cost producers. The competitiveness and profitability of a coal mine is based on the costs of production and the supply position on the cost curve. There is no single method of cost estimation, and the available methods consider only one or a few variables, leaving out multiple variables that could significantly affect the estimation of mine costs. Mining companies are thus searching extensively for a method that will increase accuracy in the estimation and evaluation of mining projectsThis paper highlights the shortcomings of the available approaches and proposes a data envelopment analysis method to develop a frontier for effective surface coal mines, and the use of a parametric method for modelling the costs and productivity of new mines to ensure effective competitiveness. The models will extend the capability of estimation and the accuracy of estimates using the efficient decision-making units, by considering the optimal mine-specific and external variables affecting costs.IntroductionCoal contributes 25% of the world’s primary energy needs, after fuel oil, which contributes 35%. The world energy demand, estimated over the period 1990 to 2030, is expanding at a cumulative annual growth rate (CAGR) of 1.7% (Schernikau, 2010, p. 14). This emphasizes the need for enhancing the production of existing mines, as well as opening new mines in order to increase the supply of coal."

Jan 1, 2015

By D. A. Spencer, L. J. Gardner

In light of the apparent productivity benefits provided by mechanised stoping, Impala Platinum Limited commissioned a study to investigate its possible implementation for mining reserves located 1200 – 1700 m below surface. This paper records the methodology employed for designing a support system for such mechanised mining, as well as initial conclusions of the work done. Preliminary results show the concept to be technically feasible; work was however stopped due to financial non-viability. En considération des bénéfices de production apparents que donne l’exploitation par gradins mécanisée, Impala Platinum Limited a commissionné une étude visant à examiner sa mise en œuvre possible pour des réserves minières situées à 1200 – 1700 m sous la surface. L’étude présente rapporte la méthodologie employée pour créer un système de support pour ce genre d’exploitation mécanisée, ainsi que les conclusions initiales de ce projet. Les résultats préliminaires montrent que le concept est techniquement faisable ; cependant le travail fut arrêté à cause de difficultés de rentabilité. Im Licht des offensichtlichen Produktivitätsnutzens auf Grund mechanisierten Stossbaus, kommissionierte Impala Platinum Limited eine Studie, die dessen mögliche Implementierung für den Abbau von Reserven 1200 - 1700 m unterhalb der Oberfläche untersuchen soll. Dieses Elaborat dokumentiert sowohl die Methode die für das Design eines Unterstützungssystems für eine derartige mechanisierte Abbauweise angewendet wird als auch die anfänglichen Konklusionen der geleisteten Arbeit. Anfängliche Resultate zeigen daß das Konzept technisch durchführbar ist; die Arbeit wurde jedoch wegen der finanziellen Nichtrealisierarkeit gestoppt.

Jan 1, 2003

By W. U. Reimold, R. Armstrong, R. G. Charlesworth

For many years rockbursts have plagued the mining industry. Although much research has gone into studying this phenomenon only a small proportion of it has been on the actual source mechanism. A study was recently carried out to compliment the previous work done on the micro-structure of these features and to compare it to the micro-structures seen on shatter cones, from meteorite impacts. Both optical and electron-microscopy were used during the study. Samples were collected from rockburst sites by the CSIR Miningtek Rockburst Investigation Unit, and from the collar of the Vredefort Impact Crater. In the optical-microscopy study, the pinnate fractures observed in previous studies were seen in the shatter cones, through all the material. In the rockburst samples, the fractures were observed only in the quartz grains. Quartz micro-crystals were present in the rockburst samples and appeared to be the product of comminution rather than crystallisation. Cataclasite was present on rockburst and shatter cone fracture surfaces. The observations of the shatter cone surfaces with the scanning electron microscope are in agreement with previous work, including the observed presence of melt features, spherules and spheroidal material. The deformation in the rockburst samples is concentrated in the quartz grains, highly complicated with brittle features like sub-conchoidal structures and step structures present. A quartz spherule was identified on one rockburst sample and rhombic-dodecahedra type micro-crystals were present and seen fracturing off quartz grains. It is clear that the rockburst and shatter cone fracture surfaces are quite different; the shatter cone deformation is equally distributed across the sample and involves plastic-deformation, while the deformation in the rockburst material is concentrated in the quartz grains and, with the exception of spherule formation, is brittle. This study agreed with the current explanation for the formation of the rhombic-dodecahedra, and disproved the possibility of it being coesite or fine-grained meta-chert. Although there is no definite evidence of the mechanism of formation of the spherule, it is believed to be the product of vaporization and condensation, and the presence of this material indicates the extreme conditions under which this event occurred.

Jan 1, 2003

By T. P. Williams, M. B. Rydzewski, B. Corner

Konkola Copper Mines (KCM) plc is an integrated copper producer operating on the Copperbelt in Zambia. KCM has numerous mining operations located in the towns of Chililabombwe (Konkola Mine), Chingola (Nchanga Open Pit and Underground operations), Lusaka (Nampundwe Mine), with a smelter located in Kitwe (Nkana Smelter) and an SX-EW plant in Chingola (Nchanga Tailings Leach Plant). [ ]

Jan 1, 2005

By M. S. Raseroka

An experimental rig has been constructed to produce chloride stress corrosion cracks in Type 304L stainless steel tube samples. The samples are to be used to test possible in situ repair methods in future work. The factor which influences the time to failure most strongly is the sample temperature; the distribution of cracks within the sample is affected by local temperature variations and by the position of the water line. Low-frequency oscillations in stress, caused by the on-off temperature controller, did not appear to influence cracking in these tests.

Jan 1, 2009

By J. N. Van der Merwe, M. Mathey

"The South African squat coal pillar strength formula, developed by researchers from the Chamber of Mines Research Organization in the 1980s, predicts an exponential increase in coal pillar strength once a critical width-to-height ratio of 5 is exceeded. The arguments that have been proposed in favour of this formula are discussed critically in this paper.Field experience with squat pillars in the USA and evidence from published physical, analytical, and numerical model pillar studies corroborate the fact that a squat effect is unlikely to occur in coal pillars at width-to-height ratios less than 10. Furthermore, an exponential increase in peak strength of coal pillars does not exist. An alternative design criterion for squat pillars in South Africa is therefore suggested. IntroductionFive decades of coal pillar research in South Africa have produced a wealth of information on the mechanisms contributing to the strength and failure of in-situ coal pillars and accompanying phenomena. The relevant knowledge was sourced from, and for, a South African coal mining environment that remained largely unchanged in the second half of the 20th century. The depth of mining seldom exceeded 250 m, with mined seam thicknesses averaging 3 m and typical pillar width-to-height ratios (w/h) of 3–4.It is therefore not surprising that comparatively little research has been directed at the prediction of coal pillar performance in deeper deposits, where squat pillars of larger width-to-height ratios will be required to support the overlying strata. However, a thorough understanding of squat pillar performance will be necessary should the remaining deep coal deposits of the country be extracted in future, for instance in the Waterberg or Ermelo coalfields.A squat coal pillar strength formula has already been proposed in South Africa. The origin of this formula will be discussed in some detail in the following sections and its appropriateness will be critically reviewed against a great amount of evidence from relevant squat coal pillar research conducted internationally."

Jan 1, 2016

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Jan 1, 2009

By C. W. Siyasiya, K. A. Annan, W. E. Stumpf

"SynopsisThe relationship between niobium content and austenite grain growth has been investigated through hot rolling simulation on a Bähr dilatometer. The effect of delay time between passes during rough rolling in Nbmicroalloyed steels with nitrogen contents typical for electric arc furnace (EAF) melting was studied. The results indicate that the grain growth constants n, Q, and A increase with an increase in Nb content. The activation energy for austenite grain growth Q was found to be in the range of 239 to 572 kJ/mol, the exponential constant n ranged from 2.8 to 6.2, and the material and processing condition constant A from 4.24 × 1012 to 4.96 × 1028, for steels with niobium contents ranging from 0.002% Nb to 0.1% Nb. A general constitutive equation for the prediction of austenite grain growth in these Nb-microalloyed steels under rough rolling conditions has been developed. Good agreement between the experimental and the predicted values was achieved with this constitutive equation.IntroductionGrain refinement has been found to increase both the strength and toughness of steels (Gao and Baker, 1998; Sharma, Lakshmanan, and Kirkaldy, 1984; Seok et al., 2014; Maalekian et al., 2012). It is also known that the austenite grain size directly influences the microstructure, and thus the mechanical properties, of the steel (Maalekian et al., 2012; Yue et al., 2010). Effective grain growth control is reported to be achieved through addition of precipitate-forming elements, such as Nb that, slow down the grain boundary migration through pinning and solute drag mechanisms (Yu et al., 2010; Olasolo et al., 2011; Alogab et al., 2007). Much work has been carried out on austenite grain lsize control by the addition of precipitate-forming elements that have a strong affinity for interstitial elements, such as carbon and nitrogen, which form the dispersed pinning particles to inhibit the austenite grain growth (Alogab et al. 2007; Hodgson and Gibbs, 1992; Nanba et al., 2003; Flores and Martinez, 1997; Rollett, Srolovitz and Anderson, 1989). Austenite grain growth can be described using a conventional or a modelling approach. With conventional approaches (e.g. metallography), in-situ monitoring of austenite grain growth at high temperatures is impossible. Modelling the grain growth behaviour based on available data is the ideal option. To quantitatively describe austenite grain growth therefore requires development of a sound mathematical austenite grain growth equation that accounts for the effects of the varying microalloying elements in inhibiting austenite grain growth. Numerous attempts have been made to develop an empirical model based on the general equation developed by Sellars and Whiteman (1979). Many of these models do not account for the direct effects of the microalloying elements such as Nb in austenite grain growth control [Fu et al., 2011; Wang and Wang, 2008; Wang et al., 2006; Shanmugama et al., 2005; Banerjee et al., 2010; Pous-Romeroa et al., 2013). The current work has considered this limitation, taking into account the direct effect of niobium in grain growth control during thermal processing. This is done by incorporating the initial austenite grain size Do and the microalloying element niobium in the development of a constitutive equation for grain growth prediction in Nb-containing microalloyed steels."

Jan 1, 2015

By P. J. Knottenbelt

Outcomes from a workshop organized through the SAIMM revealed that the minerals and metals industry must develop its ?Engineering Team? if it is to continue to meet the challenges of globalization. The very economy of the country is largely dependent on a competitive and stable engineering team within the minerals and metals sector. With the Chamber of Mines (COM) passing on its education and training initiatives to the industry, the professional bodies like SAIMM must (despite meagre resources) continue the good work done through the COM in the past. The workshop highlighted recruitment and selection, further/higher education, socialization and initial training, deployment and retention and continuing education as priority areas. These are further detailed in this report. Office Bearers have considered the outcomes and the areas where the Institute should or should not be involved have been stated.

Jan 1, 2002

By R. Dippenaar

Traditionally, iron ore has been reduced with coke in a blast furnace and the hot-metal product of the blast furnace containing carbon, manganese, silicon, sulphur and phosphorous, was subsequently refined in a steelmaking furnace. During iron making as well as during steelmaking, significant amounts of slag are produced. Two decades ago, more than 13 m tonne of blast furnace slag and 4 m tonne of steelmaking slag per annum were produced in the USA alone. It is, therefore, not surprising that many attempts have been made to re-use iron and steelmaking slags. However, these slags are not merely metallurgical waste products but, on the contrary, their compositions and physical properties are judiciously designed to optimize the operations in the respective metallurgical reactors. The variation in composition and properties of blast furnaces lags are largely determined by the gangue in the ore and ash in the coke and much progress has been made in the re-use of such slag. With respect to steelmaking slag, emphasis has in recent years been placed on hot-metal treatment before refining and ladle treatment after decarburization. The bulk removal of silicon, phosphorous and sulphur from the hot-metal product of the blast furnace by specially designed slags prior to refining in a basic oxygen furnace, has reduced tap-to-tap time, lowered cost and produced steel of much higher quality. The use of synthetic slags in ladle refining techniques subsequent to decarburization in the basic oxygen furnace has resulted in reduced hydrogen and nitrogen contents and reduced solute impurities. Moreover, inclusion shape and composition control, again by the use of specially designed slags has led to the achievement of much improved mechanical properties of the steel. In these revised process routes, slag of different compositions are produced in the variety of unit processes and hence the re-use of steelmaking slags has become much more complex. Clearly, a thorough understanding of the design and use of these different slags is a pre-requisite to the development of re-use strategies. Japanese steelmakers have spearheaded attempts to reduce slag volumes in the individual unit processes and to strive towards ‘slagless steelmaking’ by recycling slags internally. Steelmaking slag volumes have been reduced on commercial scale from about 140 kg/tonne steel to 60kg/tonne steel. Moreover, model predictions have shown that, in principle, all slag can be recycled and the phosphorous extracted to produce fertilizer. This development is of particular significance since the supply of low-phosphorous iron ores is diminishing at an ever increasing rate. Keywords: slag, environment, iron, steel,

Jan 1, 2004

By L. K. Witika, J. H. Masinja

"Investigations of flotation characteristics of Lumwana and Kansanshi ores using formulated frothers were carried out. Of the six frothers tested, two came from the alcohol family, two from the glycol family and last two were formulated products. The initial work involved determining the optimum mesh of grind and frother dosage for Lumwana and Kansanshi ores. Further work involved carrying out surface tension, bubble size and froth stability measurements. Finally, water recovery tests were conducted at Lumwana and Kansanshi mine sites. For froth stability tests, six frothers were tested on a two-phase (water–air) system using the Bikerman column flotation cell, while water recovery tests were conducted using a total of seven frothers, including the standards for each plant. The results of the testwork showed that (i) although a stable froth is essential for optimum recovery of valuable minerals, a higher molecular weight frother, like Dowfroth 250, caused poor selectivity when used on fine ores and (ii) a lower molecular weight frother was suited for Lumwana ore, while a mid to higher molecular weight formulated product was suitable for Kansanshi sulphide ore. INTRODUCTION Investigations of flotation characteristics of Lumwana and Kansanshi ores using formulated frothers were carried out. The initial work of this project involved determining the optimum mesh of grind and frother dosage for Lumwana and Kansanshi ores. Further work involved carrying out surface tension, bubble size and froth stability measurements. Finally, water recovery tests were conducted at Lumwana and Kansanshi mine sites. In order to investigate the gangue entrainment levels in the Lumwana and Kansanshi sulphide ores, two well-known methods (froth stability and water recovery) were used. Firstly, froth stability tests were conducted using six frothers, two from the glycol family (Dowfroth 200 and Dowfroth 250), two from alcohol family (MIBC and pine oil) and other two from the formulated family (Betafroth 20 and Betafroth 245), at the University of Cape Town’s Centre for Mineral Research (CMR) laboratories. Froth formation and stability measurements were conducted using the Bikerman column flotation cell."

Jan 1, 2015

By F. P. Hassani

Today, mine backfilling has become an integral part of mining operations, both from a local and overall ground control point of view, and as regards mining techniques and environmental considerations. During the past decade, substantial research has been carried out to contribute to the better understanding of the mechanisms involved in mine backfill behaviour. This work involved analytical, experimental and numerical studies at different scales. Accordingly, this work has been aimed at developing backfill design guidelines for actual working conditions. Backfill design for deep mining conditions is complex and requires understanding of various elements. The most important of these elements are: backfill inherent strength parameters, backfill placement method, stope geometry and interaction between backfill and host rock. The mobilization of backfill strength parameters controls the backfill behaviour and thus, its failure mode. It is believed that the governing boundary conditions and backfill-rock interaction influence the backfill strength mobilization significantly. Accordingly, the interaction between backfill and host rock is an influential factor in overall backfill behaviour under applied loads. The focus of this research is to investigate the backfill-rock interaction, considering a nonlinear behaviour for both backfill and rock mass. Assuming typical stope geometry, the FLAC code was used to model the complex boundary condition associated with narrow vein mining conditions and to simulate the backfill behaviour. A comprehensive numerical study was conducted and the results obtained were compared against field observations. The analysis of findings provides qualitative results, which can be used for backfill design. Keywords: Numerical modelling, backfill, deep mining, non-linear behaviour, rock mechanics, backfill behaviour, narrow vein mining.

Jan 1, 2008

By R. E. Wilmot

The problem of corrosion of reinforcement in concrete structures is internationally recognized and represents the single biggest expenditure in the preservation of steel reinforced concrete structures. While the corrosion protection of the reinforcing steel is no substitute for design and the placement of good quality concrete, it does provide for a viable and economical extension of structural integrity and service life in the day-to-day and practical environment in which concrete structures are constructed. The mechanism of corrosion attack and consequent deterioration of reinforced concrete structures is well understood and documented. New structures can be designed and built to withstand corrosion. However, due to short-term economic restraints, many new reinforced concrete structures continue to suffer as a result of corrosion damage, which results from the corrosion of the steel reinforcing. This paper explores the economic and practical benefits offered by the application of hot dip galvanizing as a viable means of protecting reinforcing steel concrete structures. The paper also discusses technical misconceptions that exist about application and performance provided by the use of hot dip galvanized reinforcing steel.

Jan 1, 2007

By M. R. Bitarafan

Mining method selection is the first and most important problem in mine design. In this selection some of the parameters such as geological and geotechnical properties, economic parameters and geographical factors are involved. The mining engineer must balance the input parameters and select the method that appears to be the most suitable; mining method selection is both an art and a science. Distinguishing all parameters that have an effect in mining method selection and in the determination of weighting factors of any parameter is a difficult task in an ordinary environment. This paper attempts to determine important parameters that impact on the mining method selection and demonstrates the calculation of the weighting factors for each selected parameter. This study has been directed to the research of a methodology for the selection of an optimal mining method. Different fuzzy methods are presented as an innovative tool for criteria aggregation in mining decision problems. Two methods of fuzzy multiple criteria decision making are used for selecting the optimal method with which to mine anomaly No. 3 of the Gol-Gohar iron mine. This paper finally presents a comparison of the selection methodologies and further discusses the most appropriate method investigated.

Jan 1, 2004

By C. Hutton

"SynopsisThe last commodities supercycle (2003 to 2011) was characterized by a belief in volume at any cost, where absolute output was deliberately prioritized over productivity considerations. This practice fuelled overoptimistic forecasting and planning, which in turn contributed to the economic crisis that followed. The sudden collapse of commodity prices has resulted in mining companies scrambling to find the right balance between optimizing current operations and preserving sufficient flexibility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins, while lower ore grades are inflating production costs. Mining companies therefore need to look at the business with fresh eyes, and develop strategies to attract equity capital as traditional approaches are simply not working anymore. This is especially so in the context of a dwindling investor base that continues to demand greater returns, despite a significantly lower appetite for risk. This paper revisits the micro-economic concepts and demonstrates how pressure from shareholders to prioritize output contributed to spiralling costs and value destruction. Practical techniques are described to model cost curves to optimize a Mineral Resource endowment and address the need to rightbalance a business and preserve agility.IntroductionHenry Lazenby (2014) for the Mining Weekly writes, ‘Bruised and battered, the global mining industry today is undergoing a sea change. Practices and policies that might have worked wonders in the past are not as relevant today, and new approaches to running profitable mining operations need to be found.’ One significant practice the mining industry had during the last commodities supercycle (2003 to 2011) was chasing volume at any cost; absolute output was deliberately prioritized over productivity considerations (Goldsmith, 2013). Lazenby contends that in the face of falling and volatile commodity prices, many mining majors ‘across all commodity groups are currently grappling with sagging profits and low company valuations. This is often regarded as the result of the were in pursuit of growing their output at all costs in a high commodity price environment.’ Lee Hodgkinson, KPMG’s Canadian mining industry leader and quoted by Lazenby, says that ‘mining companies are now trying to find the right balance between optimizing current operations and preserving their agility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins [whilst] lower grades of ore are inflating production costs. Mining companies need to look at the business with fresh eyes, and develop strategies to attract equity capital as it seems clear that some of the traditional approaches to the mining business are simply not working anymore."

Jan 1, 2015