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By S. Shamaila

The design and efficient operation of density-based mineral processing units requires regular densimetric analysis to be carried out on the various associated process streams. The results obtained from such analyses can have wide application, including the generation of washability and partition curves, which are critical for process design, control, and simulation. This paper describes some of the collaborative efforts that Kumba Iron Ore, in partnership with Springer New Technology and Anglo Technical Solutions Research, is pursuing in developing a novel density determination technique exploiting X-ray transmission (XRT) and optical imaging. This technique is being developed with the aim to determine sample density distributions that apply to washability characterisation of ores. This technique is aimed to be an alternative to the traditional sink and float method. For certain applications sink and float has required the use of tetrabromoethane (TBE) solution?a chemical that has been classified as harmful and environmentally unfriendly. This paper therefore presents some achievements in developing this novel technique which seems to be very promising.

Jan 1, 2012

By A. H. Swart, M. F. Handley

Unplanned stope panel collapses occur on most near-surface and shallow mines in South Africa. Although these incidents often occur during blasting, they pose a major threat to the safety of underground workers and the economic extraction of orebodies. Most stope panel collapses occur due to excessive panel lengths that are not designed according to a systematic design procedure or methodology. Instead, panel lengths are often dictated by the equipment in use and by previous experience under similar conditions. Hence, a rock engineering design methodology for the design of stable stope panels between pillars is of vital importance for optimum safety and production in shallow mining operations. Using the proposed design methodology described in this paper, rock mechanics practitioners and mine planners should be able to identify and quantify the critical factors influencing the stability of stope panels. The critical factors should then be used as input to the design of stable stope panels that will provide the necessary safe environment for underground personnel working in stopes. The proposed design methodology is an iterative process, which includes aspects such as rock mass characterization, estimation of rock mass properties, identification of potential failure modes, consideration of appropriate stability analyses and other elements of the rock engineering design process. This process continues after implementation. During monitoring, new data should be included in the database and the design process repeated on a regular basis. Design approaches included in the proposed design methodology include empirical methods such as different rock mass classification methods, analytical methods such as elastic and Voussoir beam analyses, kinematic analyses, probabilistic analyses, and numerical analyses. Keywords: stability, stope panels, design methodology, hard rock mines, shallow mining operations

Jan 1, 2004

When a mine decides to construct surface structures close to, or on undermined ground, it is required in terms of the regulations of the Mine Health and Safety Act to obtain permission from the Department of Minerals and Energy (DME). Apart from the legal requirements, the stability of the structures is crucial as damage to the structures due to surface movements could result in loss in life, equipment and/or production. This paper deals with the rock engineering aspects of a study that was conducted on one of the chrome mines in the Bushveld Complex (BC) involving the construction of plant structures on shallow undermined ground. The paper addresses the legal requirements and guidelines regarding ground stability of surface structures placed on undermined ground and the assessment of the undermined area with regard to the following: ?sources of potentially damaging surface movements ?safe mining spans ?stability of the pillars ?effect of the loading of plant structures on underground stability. Due to the irregular layout and geometry of the pillars in conjunction with a changing surface topography, numerical analysis and not the conventional tributary area theory was used to determine the imposed loads on the pillars. In order to subject the plant structures to minimum movement, the plant should be located in areas where the pillars would remain stable, the elastic deformation of the hanging wall is minimized and hanging wall failure extending to surface is unlikely to occur. The study indicates that although the depth of undermining is shallow (between 27 m and 60 m), potential damaging surface movements are not anticipated due to the stability of the pillars, competent nature of the overlying strata and negligible effect of the plant structure loading on the underground stability.

Jan 1, 2004

Ausmelt is supplying commercial quantities of an alkyl hydroxamate flotation collector AM28 for flotation of oxide and supergene base metal ores and tailings. AM28 is a non-hazardous product used as a ten per cent to 50 per cent solution in dilute potassium hydroxide. It is a selective flotation collector for oxide or oxidised base metal minerals and replaces conventional sulfidisation for oxide mineral flotation. At Radio Hill, the AM28 is used in conjunction with traditional sulfide collectors, which allows simultaneous flotation of oxide and sulfide copper minerals. The Fox Resources Radio Hill copper concentrator near Karratha, Western Australia, is currently configured to treat supergene copper ore sourced from the West Whundo open pit. This Archean VMS type copper deposit has been deformed and remobilised with uplift, erosion and weathering to form a significant supergene zone. The sulfide copper minerals present in the upper zone are digenite and chalcocite with lesser chalcopyrite and covellite. Oxide copper minerals present include cuprite, with lesser malachite and azurite. Gangue minerals include quartz, talc and chlorite. Plant trials at Radio Hill are reported for supergene West Whundo ore, where the AM28 was stage added into the circuit at nominally 80 g/t. Plant data over three months shows the copper recovery increased consistently from around 50 - 60 per cent to above 70 per cent when AM28 was added. This has been proven statistically. The grade of the concentrate was consistent with and without AM28, at nominally 22 - 24 per cent copper.

Jan 1, 2007

If an orebody has been drilled to achieve some level of regulatory compliance, then a number of associated geological databases will exist, representing 10 000 to 100 000 m plus of core intervals. The databases usually contain data about assays, lithology, mineralisation and geophysical attributes. They will also include location information such as collar positions and downhole surveys. Obviously this data is collected by geologists for, predominantly, geologists and mining engineers. However, from a process design viewpoint process engineers usually ignore the geology where possible and rely on a small number of metallurgical test samples. Typically these test samples are sourced from convenient and available cores or from a small number of specially drilled metallurgical holes. One of the worst instances known to the author was the design of a SAG mill using only two SAG specific test results (one for each of the major ore types) while, geologically, the orebody was defined by more than 30 000 m of drilling. This paper sets out a philosophy to maximise the use of the geological data, both for process design and in preparation for the commissioning phase of projects. Geological data is used in the identification of preferred locations for metallurgical test samples, for checking the metallurgical validity of the geological ore-type definitions, where necessary developing new ore-type definitions (geometallurgical domains) and developing mathematical relationships for the estimation of important metallurgical factors across the geological database. If the estimation of factors (for example ore competence) is considered reliable enough then there is also the possibility of feeding calculated data back into the block modelling process to allow the generation of metallurgically relevant outputs in the mine plans.

Jan 1, 2007

By M. Kilfoil

Many minerals processing operations result in crushed rock being mixed with a liquid. Sometimes, the rock particles have to be dried before the next process begins and there may be a considerable distance between the equipment carrying out these processes. Bateman Engineered Technologies (BET) developed, patented and commercialized a method of simultaneous pneumatic conveying and drying. A joint project to assist with optimizing the process is under-way. Part of it is a numerical simulation of the process. The simulation is done using a dedicated program written in MATLAB, (commercial software which is widely used in engineering). It accounts for heat and mass transfer as well as particle transport. The main part of the program consists of a loop containing a series of equations which are evaluated sequentially. During any particular iteration, the properties are changed one at a time. Since the properties are changing relatively slowly, this method gives good results. The outputs of the simulation are consistent with the operational experience of BET’s engineers. The output is very comprehensive and all numerical. Since the program is currently being used for research purposes, flexibility is very important. Thus the output is converted into a spreadsheet file. Variations in the output quantities are displayed graphically using MS Excel. Some simulation could have been done using computational fluid dynamics (CFD) software. The advantages and disadvantages (technical, financial and skills requirements) of the two approaches for this particular type of simulation are compared briefly. Keywords: Pneumatic conveying, Heat and mass transfer, Computer model

Jan 1, 2003

By J. W. Oberholzer

The use of computers in the South African coal mining industry has increased during the 1980s. Applications at mine level commenced in the financial and personnel areas of payroll systems, mine accounting procedures and staff record keeping. More use is made now on mines of technical programs for purposes such as mine planning and mine survey calculations. The Coal Mining Laboratory of the Chamber of Mines Research Organization has provided, for a number of years, a service to Chamber member collieries in regard to the application of technical computer programs. Programs presently in use for simulating production procedures and conveyor belt transport systems are described. In addition, reference is made to the collection, storage and analysis of data concerning the performance of continuous miners over a period of eight years. More recently a computer program for the simulation of the cutting action of continuous miner cutting drums has been developed. The use of this program to assist with drum design is explained. The fact that many requests to make use of the programs are received from collieries is an indication of their acceptance by industry. Their interest in running the programs themselves on their own desktop computers has led to the need to convert the software for microcomputers.

Jan 1, 1987

1. Recent books D. K. Hsiao, D. S. Kerr, and S. E. Madnick. Computer security. New York, Academic Press, 1979.276 pp. $18. W. C. J. van Rensburg and S. Bambrick. Economics of the world's mineral industries. Isando, McGrawHill, 1979. R18,95. Soviet metallurgical research 1973-1977. Vo!. 1. Subject index and author index (1963-1972). Vo!. 2. Chronological listing of titles with full bibliographical information (1960-1972). London, Scientific Information Consultants Limited (661 Finchley Road, London NW2 2HN). £24 per set. W. Hoosen. Miners' dictionary. London, Institution of Mining and Metallurgy, 1979. (Reprint.) £11 (£9 for members). G. J. Pitt and G. R. Millward. Coal and modern coalprocessing: an introduction. New York, Academic Press, 1979. 224 pp. $18. D. Stephenson. Rockfill in hydraulic engineering. Amsterdam, Elsevier, 1979. 228 pp. U.S. $45, D.fl.90. 2. NIM reports Report no. 2015 The preparation of synthetic standards for use in instrumental neutron-activation analysis. Report no. 2029 The commissioning of a 5 kW inductively coupled plasma unit for use with a 3,4-metre Ebert spectrograph. Report no. 2032 The Cancer Project: a summary of the computer-aided operation of a 48 MV.A ferrochromium furnace. Report no. 2036 The determination of thallium in ores, concentrates, and metals. Report no. 2040 A solid-state constant-current power unit for the magnetic analyser of the MS702R mass spectrometer. Report no. 2044 The separation and determination of anions by ion chromatography. Computer congress In October 1980, Japan and Australia are hosting the 8th World Computer Congress. This Congress is a triennial event conducted under the sponsorship of the International Federation for Information Processing. INFACON 80 The Second International Ferro-Alloys Congress, organized by IPFEO (Institute of Western European Ferro-alloy Producers), is to be held in Lausanne, Switzerland, on 13th to 16th October, 1980.

Jan 1, 1980

By C. A. Jermy, B. J. Venter

Excessive build-up of methane and water pressures was identified as the leading cause of some Q/the roof falls in a coal mine in the eastern Transvaal. In order to characterize the migration of the methane and water into and around the mined coal seam, a laboratory investigation of the permeability of the roof strata was undertaken. The aim of the investigation was to correlate changes in the fades with changes in permeability to enable the prediction of possible zones of pressure buildup. The tests were carried out on samples from borehole core that had been obtained from the roof strata as part of the mine exploration programme. Permeability measurements were then conducted under atmospheric and triaxial-stress conditions. For the tests under atmospheric conditions, a modified Ohle cell was used and, for the tests under triaxial-stress conditions, a modified Hoek cell was used. The liquid equivalent permeability?s of the different samples were obtained by use of ASTM D4525- 85, and these were then used as a basis for comparison. Facies type, i.e. grain size, was found to have an influence on the permeability but, owing to the variable nature of the sediments, a range of permeability rather than a specific permeability value was associated with each type of Jades. The measured permeability was bound to decrease with an increase in gas pressure. The liquid equivalent permeability was bound to increase with an increase in grain size for the coarser-grained Jades, and to decrease with an increase in grain size for the finer-grained types. The application of an external stress regime to the sample was bound to reduce the permeability, but the amount of the reduction depended on the type of stress. The permeability was also found to depend on the recent stress history of the sample. The authors conclude that the methods described are useful for the correlation of facies type with permeability, but that the results are sensitive to changes in locality.

Jan 1, 1994

By J. P. Hoffman

In 1988 the Japan Iron and Steel Federation started a research-and-development programme known as DIOS (direct iron-ore smelting). Eight Japanese integrated steel producers and the Coal Mining Research Centre, subsidized by the Ministry of International Trade and Industry, are involved in the project. The aim of the programme is to have a 500 v/d pilot plant for the production of iron via an oxygen-coal in-bath smelting converter in operation by mid 1993. The three main components of the DIOS process are as follows: ?a fluidized bed for the pre-reduction of iron-ore fumes ?in-bath smelting reduction in a converter ?off-gas reforming by the addition of coal fines. The main drive is to provide a smelting process that is more energy-effective, using coal instead of coke and/or electricity. The advantages claimed include inter alia ?direct use of fine iron ore ?direct use of non-coking coals-low coal consumption ?low capital expenditure-replaces costly coke ovens, agglomeration plants, and the blast furnace ?economical production on mini-plant scale ?less of an impact on the environment. This concept of 'direct steel has been carried over to the production of stainless steel direct from the ores, again bypassing such energy-intensive units as the submerged-arc furnace for the production of ferrochromium. A number of Japanese companies have indicated a certain amount of success. Several interacting elements are recognized that could have a productivity-limiting aspect. The possibility of the direct production of stainless steel from chromite is discussed briefly with reference to the Highveld of the eastern Transvaal as a possible site for such a plant

Jan 1, 1992

By E. Pothas, P. R. Jochens, L. B. McRae, D. D. Howat

SYNOPSIS The phase equilibria, viscosities and sulphur capacities of titaniferous slags were determined in the composition range of CaO = 30 to 0 per cent, MgO = 0 to 30 per cent, SiO2 = 19.69 per cent, AI.O. = 13.12 per cent and TiO2 = 37.19 per cent. The phase equilibria were determined by high temperature microscopy, the viscosities were measured using a rotating outer cylinder viscometer and the sulphur capacities were evaluated from the results obtained by equilibrating the slag in a gas stream of CO, CO2 and SO2. The behaviour of these titaniferous slags under reducing conditions was examined. Possible use of the slags for aggregate, or slag-cement, and the possibility of extracting the TiO2 are discussed. CONTENTS INTRODUCTION PHASE EQUILIBRIA VISCOSITIES DISCUSSION OF THE PHASE EQUILlBRIA AND THE VISCOSITY VALUES EFFECT OF REDUCING CONDITIONS SULPHUR CAPACITY DISCUSSION OF THE SULPHUR CAPACITY VALUES POSSIBLE USES CONCLUSIONS ACKNOWLEDGEMENTS REFERENCES INTRODUCTION The latest phase in the exploitation of the mineral wealth of the Bushveld Igneous Complex is the erection of a plant by the Highveld Steel and Vanadium Corporation Limited near Witbank to produce steel and vanadium-rich slag from the titaniferous magnetites occurring in this rock formation. These titaniferous magnetites occur as segregations in the gabbro body and the TiO2 is mainly present within the structure of other constituent minerals but also occurs in smaller amounts as ilmenite and ulvospinel. The vanadium is thought to be present in the iron oxide phase due to isomorphous replacement of the iron. Until very recently, it was feared that the high titania content of these titaniferous magnetites would militate against their value as useful iron ores. However, the design of an integrated plant to produce both steel and vanadium-rich slag, and in which the iron-making process is conducted in submerged arc furnaces instead of in

Namakwa Sands, an Anglo Operations Limited subsidiary, is a world-class producer of heavy minerals. A layer of duricrust imposes a pseudo-stratigraphy to the primary deposit and has sterilized part of the generally unconsolidated ore in the open cast mine. The bulk of this ore cannot be treated by the present infrastructure, which employs conventional mineral separation technology. The mineralogy of the cementing agent consists of magnesium and calcium silicates and minor carbonates in addition to clay minerals such as sepiolite and those from the smectite group. Although the duricrust ore is friable and can be easily crushed, the significant clay-sized slime fraction produced, in particular the highly sorptive sepiolite, adversely affects mineral separation. The geometallurgical challenge is to cost-effectively remove the slimes from the ore before it is delivered to the concentrator.

Jan 1, 2007

By G. D. Schena

The issue of evaluating the economic impact of large mineral projects in developing countries was studied by the use of econometric models. The evaluating system is demonstrated by its application to an example from Namibia. Three-dimensional graphics are used to illustrate the procedures leading to an assessment of the economic effects of the mineral development. The analysis allows the assessment of the overall economic consequences of mineral developments where there is a need to incorporate in the evaluation issues that are broader in scope than the pure financial objectives. Sets of technical coefficients are exploited for the development of input-output models of the productive structure of an economy. The models are refined to incorporate country-specific behaviours. The increased flexibility of the enhanced semi-input-output model permits a more confident investigation of the economy wide effects associated with a new project in the mineral sector of a developing country. Synthetic measures of profitability at market and shadow prices are introduced, and the cost/benefit ratio is used to rank mineral projects according to their economic profitability. The cost is the capital mobilized for the development of the project and for increasing the productive capacity of the related satellite industries. The benefits are identified with the economy-wide increase in value added induced by the project. 80th costs and benefits are initially valued at market prices. Their ratio is likely to be an index of economic profitability superior to measures that concentrate exclusively on the benefit side of projects. To allow for market distortions, the concept of shadow prices is introduced, and accordingly project-related costs and benefits are re-evaluated. A new cost/benefit ratio at shadow prices is recalculated, which is more meaningful to the policy-maker than decision-making based on socio-economic issues.

Jan 1, 1993

By J. Abdollahisharif

Optimal cut-off grade is one of the most critical parameters in open-pit mine design because it defines the ore and waste and thus determines the maximum net present value possible from the mining operation. Although the algorithm presented by Lane (Choosing the optimum cut-off grade. Colorado school of Mines Quarterly, vol. 59, no. 4, 1964. pp. 811-829) is the most common one in the literature, it does assume constant capacities of the mine, processing, and refinery. In this paper, Lane's original algorithm has been modified to consider variable processing capacities in order to determine the optimal cut-off grade in open-pit mines. The new algorithm proposed here is compared to both Lane's original algorithm and to a previous modification that incorporated rehabilitation costs into the cut-off grade estimation. The algorithm proposed here that permits variable processing capacities is shown to be superior for the determination of optimal cut-off grade to both these previous versions. In addition, a computer-based program was developed in Microsoft Office Excel© to calculate the optimal cut-off grade as proposed here.

Jan 1, 2012

By S. Kahraman

P-wave velocity measurements were carried out on 22 large limestone blocks in a stone processing plant. In the laboratory, P-wave velocity of core samples was measured to obtain intact rock velocity. The square root of the ratio of the velocity of the large stone block to the velocity of the core specimen was called the velocity ratio index (VRI) and a quality classification for large building stones was suggested. In addition, the applicability of the established classification to stone cutting with gang saws was checked. It was concluded that the quality classification and estimation of slab production efficiency of the building stones can easily be made by ultrasonic measurements. However, the study was carried out only in limestone. Further study must be conducted to check the validity of the obtained results for the other rock types.

Jan 1, 2007

By B. Sergeant

Any study of the contentious subject of nationalization can ultimately be reduced to a sombre analysis of the simultaneous, and very different, interests of capital, labour, and government. Each of these interests attempts to maximize its objectives, subject to checks and balances provided, in an ideal system, by a country's executive government, legislature, and judiciary. Where even one of the three interests goes out of control, the consequences can be disastrous. The case histories show that when this occurs, the most common culprit is government, or its proxy, such as a dictator. At the other extreme, the case studies indicate that the optimum outcome occurs when capital, labour, and government are 'ring fenced' from each other: each enjoys its rights, but is also subject to duties. 'Conflicts of interest' between the three entities are ideally avoided to the maximum possible extent. The case studies include several salient instances from both the DRC (Gécamines, La Générale des Carrières et des Mines) and Zambia, along with Ghana and Chile. Further instances are examined in South Africa (gold), India (Coal of India), Brazil (Petrobras), Venezuela (Petróleos de Venezuela), Sweden (Luossavaara-Kiirunavaara Aktiebolag), Mauritania (Société Nationale Industrielle et Minière), Norway (Norsk Hydro), Botswana (Debswana), and Namibia (Namdeb). The article concludes broadly that South Africa's minerals sector is not ready for nationalization.

Jan 1, 2013

By R. du Preez

Tati Nickel is currently operating a hydrometallurgical demonstration plant in Botswana, using the Activox® process developed by LionOre Technology to produce nickel cathode and a cobalt salt from a sulphide concentrate. Cobalt is extracted using Cyanex 272. This reagent also extracts all the iron, aluminium, copper, zinc, and manganese from the nickel stream. Versatic 10 carboxylic acid is then used as extractant to recover nickel from the stream, separating it from calcium and magnesium, and upgrading it to provide a suitable advance electrolyte for nickel electrowinning. However, the selectivity of Versatic 10 for nickel over calcium is limited, and gypsum formation in the extraction circuit is a problem when attempts are made to maximize the recovery of nickel. Mintek has developed a synergistic system with Versatic 10 for improved separation of nickel from calcium and magnesium. Laboratory testwork was conducted on the raffinate of the cobalt solvent extraction circuit to optimize the Versatic 10/Nicksyn? (Mintek synergist) system to be employed. Extraction and stripping parameters suitable for this stream were optimized in the laboratory and then applied on the demonstration plant. A commercial batch (0.5 tons) of Nicksyn? reagent was produced for the demonstration plant. The laboratory testwork results and the demonstration plant performance are discussed in detail in this paper.

Jan 1, 2007

By H. W. Read

Sustained growth in demand for platinum group metals has resulted in an unfettered increase in new projects undertaken by the platinum producers. These projects are outsourced to various degrees. The argument of this paper is that both the client?s project manager and the consultant?s project manager are essential elements in the successful execution of a project. Their roles are not only different but also complementary, and are defined in the paper. Data gained from considerable experience in the South African corporate mining environment underpins the opinions expressed in the paper. Furthermore, an extensive literary search was undertaken to determine trends in related industries outside the South African context. Throughout the argument it is emphasized that project philosophy emanates from a systems view and must be treated as an overarching whole. The elements of project management become meaningless unless they are connected to one another and integrated into a cohesive unit. Advancing the knowledge field of project management is of critical importance to mining investors. There is no doubt that a key determinant of the sustainability of mining business is closely related to the efficiency of all-inclusive project management. From pre-investment and feasibility studies, implementation and execution, to ramping-up to full production, scientific project management has a critical role to play. Guidelines for the pursuance of this ideal are proposed. The introduction contextualizes the subject matter in an overview of the evolution of mine management in South Africa and abroad. Then, brief insight is given into the philosophy of project management. This exposition is confined to the predispositions, presuppositions and defining characteristics of project management. The core of the paper looks at the roles of the client?s project manager in relation to the consultant?s project manager. This section is underpinned by practical experience gained by the author on numerous mining projects. A view is taken of the future of project management in the mining industry. The conclusion summarizes the argument and aligns project management trends in the mining industry.

Jan 1, 2004

By L. J. Park, A. D. Thomas

Gladstone Pacific Nickel Limited (GPNL) is proposing to develop the Marlborough nickel deposit in central Queensland and the Yarwun Refinery in Gladstone, Australia. The project proposes to connect the two sites with a DN 500, single pump station slurry pipeline, transporting up to 4 Mtpa of nickel laterite ore as slurry 180 km from Marlborough to Gladstone. Slurry viscosity is a key parameter influencing pipeline design. Not only is the slurry viscosity relatively high, requiring pumping at low concentrations, around 30% by weight, but the viscosity (yield stress and plastic viscosity) increases with shearing or agitation. It is argued that the viscosity changes can be analysed in terms of total energy input, including energy input during grinding. The slurry viscosity is therefore expected to increase along the pipeline and the pumping concentration must be low enough such that the increase in yield stress does not cause transition to laminar flow towards the end of the pipeline. The base viscosity of two ore types is determined using a rotational viscometer for minus 212 micron slurries. Viscosity variations with ore particle sizes of d99 212, 425 and 600microns are investigated. For each of these particle sizes the expected increase in viscosity during pipeline transport is simulated on a laboratory scale by agitation with a turbine mixer in a baffled container to give the same equivalent unit energy input as will occur in the pipeline. Tests were also conducted on the d99425 micron slurry in a 2.7 metre diameter DN 200Wheelstand, rotated for the 23 hour transit time and at a similar relative velocity as in the pipeline. Based on the Wheel stand test results the yield stress is expected to increase by a factor of 3.1during pipeline transit. The preliminary design allows for a reduced pumping concentration to accommodate this increase in yield stress towards the end of the pipeline.

Jan 1, 2007

By N. Brown

Australian mining companies are actively exploring for and developing mineral deposits throughout the world with interests in emerging markets such as Africa, Asia and South America. It is important to understand emerging market risk as this will affect the willingness of mining companies and financial institutions to invest in a country, especially with reference to their key asset, the mining licence or operating/concession agreement. Mining companies looking to develop new projects in emerging markets have different risk profiles than projects in countries such as Australia and Canada. Examples of key risks faced in emerging markets include: 1. political - expropriation, nationalisation, contract frustration, currency inconvertibility, war, terrorism, strikes, riots and civil commotion; and 2. legal - mining legislation, arbitration and dispute resolution, trade agreements. There is a problem in the difference in risk perceptions between mining companies, financial institutions and insurers. This can cause different stakeholders to carry out different evaluations of the risks faced by a project, resulting in confusion about the risk margin attached to any project. In a time where resource nationalisation and energy security are prompting governments to become more involved in the mining sector we run through some recent examples of mining companies that have had problems due to the key risks highlighted earlier. Importance of carrying out the right due diligence to replace perceptions with reality: ? early identification of risks - detailed due diligence on emerging market risks that may arise will help with their identification and mitigation, ? make use of companies that can help identify risks and suggest solutions, ? control the cost of financing - risk margin applied to a project ? finance loan will be influenced by the risks faced, and ? risk management and using political risk insurance. There are plenty of opportunities in emerging markets but it is important to recognise the associated risks. Detailed due diligence at an early stage will provide long-term benefits.

Jan 1, 2007