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By F. T. Cawood, C. C. Birc

The South African mineral resource royalty system, initiated in 2010, employs a hybrid ad valorem approach tied to profitability ratios. This rate is then applied to the total revenue from mineral sales. In this article we explore how the profitability ratio in the mineral resource royalty formulae interacts with the gold tax formula as applied to South African gold mines, devising a strategy for cut-off grade optimization. The study focuses on nine narrow, tabular-reef (Witwatersrand) gold mines. The approach involves a mixed-integer cut-off grade optimizer utilizing Excel Solver, incorporating relevant royalty and income tax formulae. Different mineral resource royalty cost scenarios were examined. Ignoring these costs in the break-even analysis lowers the cut-off grade but slightly boosts profits compared to considering expected costs. The developed optimizer model, recognizing the profitability aspect of the mineral resource royalty and income tax formulae, yielded a 6% lower cut-off grade than the base case. This is significant for increasing mine life. While the profit differences are marginal (0.2% compared to the break-even base case), substantial improvements were noted: a 6% increase in stope tons above cut-off grade, and a 4% rise in total revenue. Enhanced resource utilization (3% extra gold kilograms) reduces necessary development and overall costs, allowing for a reduction in the cut-off grade and ultimately, more profit.

Aug 8, 2024

By T. C. Huber

The southern African region has a high concentration of mineral resources and supplies much of the world?s platinum demand. As a result, the international community watches South Africa to understand the impact of supply on global markets. An analysis of supply certainty and risk plays a key role in the future of growing demand in various sectors. The southern African platinum industry experienced substantial growth in the early part of the 21st century, resulting in bullish forecasts for growth during the period of 2000?2006. However, southern African platinum producers saw a significant drop in production over the following three years as a result of many dynamic factors in operations and the global economy. Between 2006 and 2009 there was a million-ounce shortfall between forecast and actual production. This was raised as a concern at the Fourth International Platinum Conference in 2010 by Stephen Forrest during his keynote address, specifically regarding the lack of understanding in the market of the causes of this shortfall and any action that was being taken to address them. This paper reviews publicly available information in the media and corporate reports and communications for the period January 2006 to December 2009. In addition, several interviews were held with key stakeholders in the industry to provide further perspective. The paper then highlights the main reasons that are reported to have affected the loss in production over the period and discusses the possible implications of the information that the mining industry does and does not disclose regarding platinum supply.

Jan 1, 2012

By M. L. Baharani

Looking for an idyllic paradise that has investment and business potential as spectacular as the stunning views of mountains, the rich Ganesh Himal zinc-lead deposit exposed between 4,050 m and 5,000 m is the answer. Arising from the sea floor in a span of 55 million years, the enchanting Himalayas had remained one of the most potent factors influencing the Asian region. The challenges of the mighty Himalayas notwithstanding, it continues to provide opportunities for the humankind in optimum usage of the natural resources and sustainable development. Optimal management of natural resources in mountain areas through decision support tools offered by remote sensing will go a long way in realization of the Ganesh Himal Zinc-Lead Project. The authors have a real life endeavor spanning over 37 years in developing a mining industry in a mountainous region of Nepal and an attempt to integrate with the development of other natural attributes of the region. With rapid acceleration of science and technology, humankind has acquired power to transform his environment countless ways and on an unprecedented scale. While mineral resources are the pillars on which we have built industry and infrastructure, industrial countries in the North have been in the forefront of technological advancements, the developed countries of the South have been at the receiving end of exploitation of mineral resources worldwide. A relationship with natural environment, re-crafted by the civilizing impulse, to meet human demands are upcoming challenges for management of natural resource in sustainable manner for a livable world.

Jan 1, 2008

By S. G. Gendler

One of the ways of trauma and occupational diseases level reduction is noted to be the improvement of the labour protection measures planning. As an indicator for prospective trends determination in the labour protection planning improvement sphere economic risk has been proposed to be used. The trauma and occupational diseases analysis based on the correlative and regressive methods has been carried out for the “Vorgashorskaya” mine of Pechora coal basin. Trauma and occupational diseases occurrences frequency and economic losses value have been estimated. Trauma and occupational diseases economic risk distribution analysis has been presented in respect to the different subdivisions and occupational groups of “Vorgashorskaya” mine.

Jan 1, 2003

By T. Szendrei and S. Tose

Historical approaches to the problem of flyrock based on correlation studies and regression analysis, including artificial neural networks and similar techniques, are inherently incapable of addressing two core issues – root causes of flyrock and projection velocity. A further shortcoming of correlation techniques is that they give no information on the influence of rock size and shape on the flight distance. The scaled depth of burial model for crater blasting in the collar zone and bench face does not specifically address the question of flyrock velocity. A third approach, based on flight trajectory calculations, often neglects the very significant effects of air resistance on the trajectory. Some trajectory models incorporate air resistance but use an implausible fragment velocity model that cannot propel sizeable rocks to distances much beyond 150 m. Nonetheless, trajectory calculation incorporating the effects of air drag affords the most promising approach to the prediction of flyrock range. A unique and insightful feature of the proposed realistic flight modelling is that it collapses all suspected causes of flyrock, many of which are not well understood, to just a single parameter – the launch velocity. This indicates that the root causes of flyrock lie in the mechanisms of momentum transfer to broken rock and suggests new avenues of study.

Dec 13, 2022

By A. Golder, S. P. Dandapat, I. Roy

One of the consequences of large-scale opencast mining for coal is the disposal of an enormous volume of overburden material that needs to be removed. With the enlargement of opencast mines and associated high stripping ratios, the volume of overburden extraction is rising. Overburden from the initial mine cut has to be necessarily dumped outside the mining area until enough void is created inside the mine for back-filling operations. The quantity of overburden placed outside the mining area normally varies from 10% to 30% of the total overburden removal. The stability of these dumps placed outside the mining area is of prime importance from the point of view of smooth operations of the mines and safety of persons in and around the dumping area. Owing to increasing pressure on land use, mine operators do not have any other option other than to place the waste dumps very near to the surface edge of the pit, which may lead to failure of the topsoil benches of the working pit. This study identified major controlling parameters that influence a stable but economic combination of height and slope angle of external dumps located close to the edge of an open coal pit.

Nov 27, 2024

By V. Maseko, C. Musingwini

"When considered collectively, Mineral Resources and Mineral Reserves are arguably a key asset for any mining company. Mineral Reserves are the economically mineable portions of Mineral Resources. They therefore provide a good indication of the economic prospects in the short to medium term and associated non-financial impairments for mining companies, hence a focus on Mineral Reserves. An assessment of modifying factors for converting Mineral Resources to Mineral Reserves revealed that Mineral Reserves were most sensitive to long-term commodity prices, hence the focus on long-term commodity prices. The justification for selecting gold and platinum mines is that they collectively make a significant contribution to South Africa’s earnings from mining.The introduction of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) in 2000 informed the basis for analysing long-term commodity price assumptions for major South African gold and platinum mining companies between 2000 and 2016. The analysis revealed that the least number of non-financial impairments occurred when long-term commodity prices were within ±5% of spot prices. This finding suggests that this range is the ideal range for long-term commodity price assumptions to improve confidence in Mineral Reserve declarations and minimize impairments. Introduction The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) defines a Mineral Resource as ‘a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction’ (SAMREC, 2016, p. 18). Mineral Resources are categorized according to increasing levels of geoscientific confidence or knowledge, from Inferred to Indicated and lastly, Measured categories. The SAMREC Code defines a Mineral Reserve as ‘the economically mineable part of a Measured and/or Indicated Mineral Resource’ (SAMREC, 2016, p. 25). In some of the other reporting codes such as the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), a Mineral Reserve is synonymous with an Ore Reserve. The conversion of Mineral Resources to Mineral Reserves involves applying modifying factors, which are non-resource considerations. The modifying factors used in the Mineral Reserve estimation process include mining, metallurgical, processing, infrastructure, economic, marketing, legal, environmental, social, and governmental factors. Each of these modifying factors consists of several components which require due consideration in the estimation of Mineral Reserves. Table I shows some of the components typically considered for each of the modifying factors."

Mar 1, 2019

By D. R. Young

Drilling exploration over the Wesizwe Platinum Limited?s Pilanesberg Project has identified the Merensky Reef at depths varying from 594 m to 1 552 m depth. Merensky Reef thickness varies from 0.05 m to 3.63 m and contains PGE(4) mineralization above a cut-off grade of 1.0 g/t over intersection widths of 0.95 m to 2.63 m. Four distinct facies types have been identified over the property, viz.1) Normal Merensky Reef, generally 1.2 m thick, bounded by thin top and basal chromitite layers and composed of upper feldspathic pyroxenite and lower feldspathic olivine pegmatoids containing base metal sulphide mineralization overlying poikilitic anorthosites. 2) Single chromitite Merensky Reef, generally0.15 m thick and usually devoid of internal silicate material, overlying variable stratigraphy containing significant base metal sulphide mineralization. 3) Detached Merensky Reef, generally1.0 m thick, bounded by thin top and basal chromitite layers and composed of feldspathic pyroxenite or pyroxenite containing base metal sulphide mineralization overlying Merensky Pyroxenite. 4) Normal footwall Merensky Reef, generally 1.8 m thick, bounded by thin top and basal chromitite layers and composed of feldspathic pyroxenite containing base metal sulphide mineralization overlying norites also containing significant base metal sulphide mineralization. The PGE(4) content?s (g/m2) distribution for the global intersection data appears to be lognormal, and conversion to lognormal space produces a near normal distribution which could be interpreted as a compound lognormal distribution. The mean PGE(4) contents estimated by these three different distributions are the same, and thus do not impact on the contained metal. Data for the Normal Merensky Reef facies type are sufficient to indicate that a normal distribution is followed for this facies type, and therefore does not need to be transformed to log space for estimation of the mean and the 90% confidence limits. A global evaluation based on all of the data is compared with a facies-weighted evaluation. The latter method is noted to provide a better definition of the associated estimation errors and thus potential classification of Mineral Resources. A valuation of $20.95 for Inferred and $41.90 for Indicated PGE(4) ounces is applied to both of the evaluations and compared. The global evaluation is considered to over-value the project by approximately 40%, thus indicating that valuations based on global summary sampling data that have a compound distribution may be materially flawed, and that cognizance of the underlying geology is crucial for unbiased valuation.

Jan 1, 2006

By Y. Rao, Y. Huang, G. Wang, W. Liu

The properties and deterioration in strength of cemented tailings backfill (CTB )in the underground acidic environment under oxidizing conditions were studied. X-ray diffraction analysis and scanning electron microscopy of the surface of the CTB was carried out, and the sulphuric acid corrosion mechanism elucidated. The properties tested included compressive strength, elastic modulus, cohesion, internal friction angle, variation in the hydrogen ion concentration, and stress-strain relationship in different corrosion periods. The damage model of the CTB was established considering the effects of parameters such as corrosion time and strain on the damage evolution. It was found that the compressive strength, elastic modulus, cohesion (binder effect), and internal friction angle increased at first and then decreased with exposure time. In the long term, the peak stress decreased with corrosion time while the peak strain increased; elastic modulus, and deformation modulus also decreased. The damage caused by corrosion and by load were related by means of a mathematical model, which revealed the relationships between sulphuric attack, load, and damage to backfill in complex underground environments. During corrosion, the expansion of gypsum and ettringite caused microfractures in the CTB. With increasing corrosion time, micro-cracks developed and proliferated. The mechanism of corrosion damage was found to be the dissolution of hydrogen ions and a sulphate ion reaction that produces an expansive substance, resulting in deterioration of the strength of CTB.

Jun 1, 2021

By W. V. Mutler

Present day capital costs are analyzed for a 2,000 metric tonne per day (MTPD) pyrite burning plant and compared with a sulphur burning plant of the same capacity. Power, raw material and steam production rates are then compared for the two facility types. A sensitivity analysis is conducted to highlight the impact changing sulphur, pyrite, capital and operating costs have on the relative economics of these feeds. Technological improvement effects on capital cost and energy recovery are also discussed. Besides the steam produced from the burning of pure sulphur or pyrite, plants using an advanced form of heat recovery can produce up to 10 bar steam using heat from acid formation. The quantity depends on the overall water balance which is influenced by such factors as gas strength and product acid concentration. Modern materials and innovative process design also improve the ability to increase the high pressure steam from the roaster boiler in pyrite plants above the traditional 1.25 kg of superheated steam per kg of acid produced.

Jan 1, 2009

By C. Hsu

Underground coal gasification (UCG) is becoming more popular as the reserves of good quality, mineable coal are starting to diminish, and yet the global energy demand from coal is still increasing. The purpose of this research project was to investigate cavity formation within a coal block due to the combustion reactions in the context of UCG. The cavity plays a pivotal role in the UCG process, as it is essentially the gasification reactor. Cavity formation in an in situ gasification process using the forward combustion linking method (FCL) had been investigated, and a laboratory model was created to simulate the process. The experiment was performed by drilling a U-shaped tunnel into a coal block, which was then combusted internally with air that was fed through an injection hole. A heating element (at approximately 500°C) was used to supply the required heat for combustion at the base of the injection well. The coal blocks were analysed using micro-focus X-ray tomography. The tomography results showed that the coal tended to crack along the bedding plane after a short duration of combustion, due to either the formation of clinker or the expansion of swelling vitrinite along the horizontal tunnel. The deposit was thicker at the base of the injection well compared to the base of the production well; this may have been caused by the turbulence of the air flow and the relatively high oxygen concentration at the base of the injection well. A comparison of the results with work by Daggupati et al. (2010) showed the same trend, despite the slightly different methodology applied.

Jan 1, 2014

By J. C. Vreugdenburg, B. A. Dippenaar, J. Muller, T. L. de Vries

Iron ore fines are agglomerated in the sintering process to produce sinter: an important feed material for blast furnaces worldwide. A model of the iron ore sintering process has been developed with the objective of being representative of the sinter pot test, the standard laboratory process in which the behaviour of specific sinter feed mixtures is evaluated. The model aims to predict sinter quality, including chemical quality and physical strength, as well as key sinter process performance parameters such as production rate and fuel consumption rate. The model uses the finite difference method (FDM) to solve heat and mass distributions within the sinter pot over the sinter bed height and time dimensions. This method can further be used for establishing empirical relationships with measured sinter properties. Inputs into the model include the feed material physical properties, chemical compositions, and boundary conditions that vary over time. Sub-models describe relationships between applied pressure differential and gas flow rate through the bed of granulated fine ore particles, combustion of carbonaceous material, calcination of fluxes, evaporation and condensation of water, and melting and solidification. Four sinter pot tests were performed and the model predictions validated against temperatures measured at depths of 100, 230, and 420 mm. Differences between predicted and measured temperatures indicated the need for optimization of some model parameters that are uncertain. Optimization resulted in an improvement in the correlation between the predicted and measured temperatures for all tests, although an acceptable level of agreement was not achieved in all cases. Using these parameter values, reasonable agreement was found in terms of typical performance parameters for three out of the four tests.

Jan 1, 2014

By Y. Y. Jiao, J. G. Cai

To investigate the dimensional effect on shock wave propagation in jointed rock masses, a 2-D and a 3-D calculation of a site test are performed respectively by using Discrete Element Method, the simulated results are compared with test data. It shows that, in modelling shock wave propagation and attenuation in jointed rock masses, when the explosive along explosion chamber is long enough and the joints are dense enough or uniformly distributed, the model can be considered as plane-strain problem, 2-D results are good enough to fit with test data. 2-D modelling, with much more details of rock masses taken into account, can be applied to make critical engineering judgements instead of 3-D modelling in some cases.

Jan 1, 2003

By G. Akdogan, T. P. Kekana, Q. G. Reynolds

The DC arc plasma gasifier concept is currently under development at Mintek for testing the feasibility of producing syngas from waste coal fines and dry steam. The technology is intended for the valorisation of low-grade discard coals into market-quality syngas, which may then be used for largescale electrical power generation to address current grid supply challenges in South Africa. Other potential applications include feedstock for petro-chemical plants, fuel for transportation vehicles, domestic and industrial heating, and others. The proposed concept of a DC arc plasma gasifier was developed based on a plasma torch, metallurgical-based and entrained flow coal gasifiers. The principles of design and operation of the proposed gasifier are based on the concept of the Westinghouse Plasma Corporation (WPC) gasifier where the torches are substituted by graphite electrodes from which electric arc plasmas are generated. The DC section of the gasifier will be designed considering Mintek’s experience in the sealing of the furnace as carried out in the Mintek Thermal Magnesium Process. As part of the building blocks of a full conceptual design, the feasibility of the DC arc plasma gasifier was investigated through testing and modelling of its critical elements as proof of concept. The main activities of this work included pilot scale evaluation of the arc behaviour in the presence of dry steam, modelling of the temperature distribution within the reactor and explosibility studies on three different coal dust samples. Keywords: DC arc plasma gasifier, explosibility index, lower explosion limit, minimum ignition energy

Jan 1, 2020

By W. V. Mutler

Present day capital costs are analyzed for a 2,000 metric tonne per day (MTPD) pyrite burning plant and compared with a sulphur burning plant of the same capacity. Power, raw material and steam production rates are then compared for the two facility types. A sensitivity analysis is conducted to highlight the impact changing sulphur, pyrite, capital and operating costs have on the relative economics of these feeds. Technological improvement effects on capital cost and energy recovery are also discussed. Besides the steam produced from the burning of pure sulphur or pyrite, plants using an advanced form of heat recovery can produce up to 10 bar steam using heat from acid formation. The quantity depends on the overall water balance which is influenced by such factors as gas strength and product acid concentration. Modern materials and innovative process design also improve the ability to increase the high pressure steam from the roaster boiler in pyrite plants above the traditional 1.25 kg of superheated steam per kg of acid produced.

Jan 1, 2009

Mr J. Meintjes (Chairman) was in the chair. There were also present: 7 Members: Messrs B. D. McNeice, A. Bain, G. E. Carlyon, C. H. Coxon, B. F. v. d. Merwe, A. C. Hofmeyer, H. J. R. Way. 4 Associate Members: Messrs E. J. Jackson, A. C. Melvill, W. Weber, R. E. Powell. 2 Visitors. It was decided to have the visit to ETC at Barberton on 20th March. A programme will be sent to all members who indicated that they wish to go on this visit. A talk on "Billet Casting of Ferrochrome" was given by Mr. B. F. van der Merwe. After question time the chairman thanked the speaker and asked for the talk to be forwarded for possible publication in the Journal. The meeting closed at 9.10 p.m.

By R. E. Robinson

I shall present a concept for the development of the resources of this country and its neighbours that repre¬sents a fantastic challenge to our scientists and entre¬preneurs. This concept offers prospects of development that must make our previous achievements seem equivalent only to the first act in a drama enacted on the stage of Southern Africa. I hope to illustrate how, in Act Two, chemistry will play a dominant role, and chemists and chemical engineers will be among the principal actors.

Jan 1, 1980

By Jack Levin

Dr Laurence AlIison Bushel, a former President of the Chemical, Metallurgical and Mining Society of South Africa, now The South African Institute of Mining and Metallurgy, was born in Queenstown on 20th June, 1910, and died in Johannesburg on 4th November, 1991. There were three distinct periods in the career of Laurie Bushel, each enlivened by some special interests or achievements.

Jan 1, 1991

By B. Maybee, J. Venter, J. Wesseloo

The selection of open-pit slope angles involves high-value decisions with small changes in slope angle, often representing significant changes in net present value. The existing methods used to define design acceptance criteria have evolved from factor of safety to probability of failure (P[F]) to risk consequence to risk frontiers, which represents current state of the art. Current design acceptance measures are based on references to published tables representing the experience and judgement of their authors, who did not specify the purpose of the measures contained therein. As the purpose of the published design acceptance criteria is not specified (i.e., definite stability, marginal stability, optimization, etc.), such tables cannot be used to achieve optimum slope angles that maximize profitability. This paper develops a design acceptance criterion that maximizes profitability by defining a formulation for optimum risk that balances expected risk and reward. The model developed is titled the Mining Risk Model (MRM), and is applied to open-pit slope angle selection through an equation for optimum probability of downside (P[D]O) that balances the upside or opportunity, the P[F], and the downside impact. This formulation for optimum risk is unique, as many authors have presented objective functions for their risk models that can be optimized, but none of the sources reviewed contained a formulation for optimum risk. The MRM is sufficiently flexible to allow the design performance measure that drives P[F], and hence P[D]O, to be selected based on the intended goal. Furthermore, the essential information that must be known to quantify optimum risk is defined. This allows users to determine what information to collect for optimum risk decisions. A further benefit of the MRM is that slope angle decisions and pit shells can be ranked to select the best option, and a threshold is provided that separates acceptable from unacceptable decisions. Finally, the workflow and information required to determine optimum risk are presented.

Sep 9, 2024

Professor R.P. King holds a Ph.D. degree in chemical engineering, which he obtained at the University of Manchester in 1963. After that he lectured in the Departments of Chemical Engineering at the Universities of the Witwatersrand and Natal. From 1968 to 1973, he was Leader of the Chemical Engineering Research Group of the National Institute for Metallurgy at the latter University. Mr C.E. Fivaz, Pr. Eng., is Chief Consulting Metallurgist of Rand Mines (Mining & Services) Limited, and is responsible for the metallurgical activities of the Gold and Uranium Division and the Coal and Base Minerals Division of the Group.

Jan 1, 1984