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By E. V. Lilford

Valuators of mineral properties are faced with a range of valuation methodologies, the most important of which are grouped under the headings of the market approach, the cost approach and the income approach. The way in which value is defined and the detail of the different valuation methodologies is examined here. This paper aims at documenting the variety of valuation procedures and applying each method to a variety of gold projects and comparing the outcomes. Any decision to apply a valuation technique will depend principally on the stage to which the project has been developed. The valuation approach to a greenfield project will be substantially different from that applied to a well-drilled, extensively explored mineral property. Furthermore, a valuation exercise may produce different outcomes for the same gold project depending on which method is applied. In order to investigate the variability in valuation methods and to explore the outcomes of different approaches, a series of five gold projects was analysed. The projects differ in regard to levels of capital application, infrastructural setting, depth below surface, in situ grade, and the stage of development, and were valued using the different methods. The most critical aspect of any valuation is the capacity of the valuer to identify the salient issues and ensure that they are incorporated into the valuation. The danger of simply applying ?black box? solutions to valuation problems without a full understanding of the parameters and the areas of uncertainty is emphasized. The importance of the valuator?s experience, insights into best practice and the ability to recognize and submit to the requirements of compliance within the minerals industry is among the most important characteristics of a valuer.

Jan 1, 2005

By F. T. Cawood

The new South African Mineral Policy has major implications on the way mineral rent will be collected and shared between the stakeholders in future. Although the policy does not supply details on how this will be done, drastic departures from practices under the previous dispensation require a new approach. For example, there introduction of the ?right to mine? principle implies that the repealed lease consideration concept will be expanded to all minerals. The new policy also makes provision for predetermined standard terms and conditions for all prospecting and mining permissions. It also states that, regardless of whether the mineral rights are state or privately-owned, all prospecting fees and mineral royalties will be determined by state officials after consultation with the registered holder of the mineral rights. This paper proposes a standard mineral royalty formula that complies with the principles mentioned in the White Paper and has been shown to be internationally competitive.

Jan 1, 2001

By A. McKenzie

During the late 1990s Anglo American PLC was evaluating the Gamsberg zinc deposit in the Northern Cape Province. As the primary South African metallurgical technology provider, Mintek became involved in the evaluation of a pyrometallurgical process for the recovery of zinc from the Gamsberg deposit. eloping DC arc furnace technology for the metallurgical industry. This includes the patented Enviroplas® process for the treatment of zinc bearing waste materials. As a consequence Mintek has developed extensive expertise in the pyrometallurgical processing of zinc bearing materials. However, Mintek?s technologies stopped with the production of Prime Western Grade (PWG) zinc. Early on in the evaluation of the Gamsberg project, it became evident that the refining of PWG zinc would play an important part in the economic viability of the project. At the time the only pyrometallurgical technology available for the refining of PWG zinc to Special High Grade (SHG) zinc was the New Jersey process. This process represents 50-year-old technology and has not undergone significant refinement since the technology was developed. In order to provide a complete pyrometallurgical flow sheet for possible implementation at Gamsberg, Mintek assessed the New Jersey process with a view to either improving the technology or developing a new technology appropriate to the 21 century. In 1998 Mintek convened a consortium consisting of Mintek, the University of Cape Town, Eskom Enterprises, Bateman Metals and Anglo American PLC. The consortium successfully applied to the Innovation Fund for funding to develop a new process for the pyrometallurgical refining of PWG zinc to SHG zinc. The main aims of the project were to develop a new technology for pyrometallurgical zinc refining that conformed to the following: ?Decrease the production cost of SHG zinc metal to stimulate the development of the Gamsberg deposit. ?Be compatible with the current Enviroplas® process, preferably as an add-on to that process. ?Should use electrical energy to benefit from local price tariffs. The project commenced at the beginning of 2000 and consisted of three phases: ?an initial technology search and assessment of the fundamental aspects of zinc distillation. ?the design of a pilot plant for zinc refining. ?the manufacture, commissioning and operation of the pilot plant. A new technology based on a DC arc boiler feeding a packed distillation column was developed and during 2003 the project culminated in the successful operation of a 200 kg/h pilot plant. Ultimately, all of the aims of the project were met and the main outcome is that an advanced process for the pyrometallurgical refining of zinc (the Zincref process) has been developed. The main innovation of the technology was the switch from an energy transfer limited process to a mass transfer limited process (for which a patent has been registered).

Jan 1, 2004

By M. McWha

Laboratory bias is a universal problem in all branches of analytical science. It results from differences in methods, techniques, equipment, and calibrations between laboratories. Notwithstanding that it is a property that can be measured by the use of standards or by inter-laboratory testing, laboratory bias remains a material issue for the mining industry. There is extensive literature and clear guidelines on measurement from the International Organization for Standardization (ISO) and its worldwide federation of national standards bodies (ISO member bodies) and from the science of metrology. ISO guides cover the manufacture and use of standards. An accessible source of literature covering laboratory quality control comes from the public health sector, particularly pathology. There is little doubt in financial reporting rules about the meaning of materiality. Public reporting guidelines are clear that material matters need to be disclosed for investors. Unfortunately there is currently no clear guidance what to do about biased assay results in mineral industry public reporting guidelines. This paper reviews the requirements for the manufacture and use of reference materials, public reporting requirements in the mining industry, and presents proposals to improve management and reporting of laboratory biases. Keywords laboratory bias, reference materials, ISO Guides, financial reporting, materiality.

Jan 1, 2014

By A. Mboma

Keywords: Furnace, decommissioning, care and maintenance, re-start, funding, nickel Bindura Nickel Corporation (BNC) operates two nickel mines, and treats concentrates from these mines as well as toll concentrates from the region around its Bindura Smelter and Refinery (BSR) complex. At the smelter, concentrates of at least 5% nickel content are blended and dried to 4% moisture in a coal-fired rotary kiln. Matte smelting of concentrate is carried out in a six-in-line electric arc furnace, where the furnace slag is granulated and discarded. Furnace matte is transferred via ladles into Peirce-Smith converters, where, after granulation, a leach alloy containing 68%Ni, 20%Cu, and 6%S is produced. Converter slag is recycled via the matte-smelting furnace. The onset of the global economic recession towards the end of 2008 resulted in a collapse of metal prices, worsening the local situation that was already marred by unfavourable macro-economic conditions in Zimbabwe. As a result, BNC mines were put on care and maintenance in November 2008, followed by Bindura Smelter and Refinery in February and March 2009 respectively. The business environment has since changed, and BNC is getting ready to re-start the plant. This paper describes the decommissioning of the Bindura furnace, asset preservation during the care and maintenance programme in the past two years, and preparation for starting up of the Bindura smelter in the near future.

Jan 1, 2011

By F. S. A. de Frey

The author would like to refer to his contribution to the paper `Design of pillar systems in South Africa' by Ozbay et al. 1. The authors agreed `wholeheartedly that further research, together with carefully planned field trials, in pursuit of this potentially highly rewarding concept' of the small span small pillar method is warranted. On 30 September 2010 the author went underground at the Kroondal Chrome Mine to observe how the concept of smaller spans was being applied. He was pleasantly surprised to find that the typical coal mine bord and pillar sytem was being used very successfully. Although the deepest mining was taking place at a depth of only 450 metres, Kroondal would be an ideal mine to do further research together with carefully planned field trials. At Crown Mines Gold Mine, where the author worked, he was informed that the first recorded rockburst took place at a depth of 635 metres below surface. The depth of the platinum and chrome mines is increasing, with the risk of an excalation in injuries and fatalities due to 'backbreaks' and siesmic activity. The rock engineer at Kroondal was not aware of backbreaks occuring on the mine. It is important that the rock engineers of the base mineral and gold mines get together and give more serious attention to the host rock environment in which the pillars are situated.

Jan 1, 2011

By C. Musingwini

The South African mining industry continues to be a major source of employment at a time when at least 25 per cent of the working age population is unemployed. At the same time the industry faces a skills shortage in many of the disciplines necessary for its future health. The University of the Witwatersrand, University of Pretoria, University of Johannesburg, and University of South Africa have historically produced mining graduates for the South African mining industry with any shortfall being met by the recruitment of overseas graduates. More recently, the global shortage of engineers and other mining industry professionals has seen a reversal of this trend and a very significant emigration of well-educated and highly skilled personnel. The traditional career path for mining graduates is in production and mine management. However, there is the parallel (and possibly more pressing) need for specialized skills in such fields as ventilation, rock engineering, mine planning, mineral resource evaluation, and mineral asset valuation. Chronic shortages in these essential areas continue to hamper the development of the industry and may well frustrate its ambitions to be safe, healthy, and profitable into the future. The permeability of skills across sectorial boundaries within the mining industry requires that skills shortages in the platinum sector are not looked at in isolation, but within the context of the entire industry. This paper reviews the efforts being made by the universities, at both undergraduate and postgraduate levels, to meet the needs of the South African mining industry in terms of the required numbers and the range of specialized skills.

Jan 1, 2013

By I. Ewart, E. Roux

Skorpion Zinc operates a solvent extraction/electrowinning zinc plant producing over 150 000 t/a of special high grade (SHG) zinc (>99.995% Zn). In the current flow sheet copper and cadmium are cemented from the neutral leach solution using zinc powder, to prevent galvanic corrosion of plant equipment and build-up of copper in plant solutions. This process is effective but unfortunately consumes expensive zinc dust and produces a low value copper product. The EMEW® (Electrometals electrowinning) technology of Electrometals Technologies Ltd. uses a rapid flow of electrolyte through a cylindrical cell to deposit copper or other metals from dilute solution (less than 1 g/L) [1]. The copper can be deposited as powder or may be harvested as a tubular cathode product. The advantage of the use of EMEW® technology at Skorpion Zinc will be to eliminate the use of expensive zinc dust and to produce a high value copper product for sale. Following extensive bench test work, a piloting campaign was carried out at Skorpion Zinc. The tests demonstrated the ability of the EMEW® cell to effectively remove copper from solution through direct electrowinning at lower operating cost than cementation. Keywords: Skorpion Zinc, copper, cementation, direct electrowinning, EMEW®

Jan 1, 2007

By G. Denton, P. den Hoed, A. Luckos

The potential application of fluidized beds in several sectors of the ferroalloy industry is promising. They can be used in the direct reduction of iron ores to produce a feed for steelmaking, in the reduction of manganese dioxide to produce a lesser oxide for feeding to smelters, in the preheating of chromite for the production of ferrochrome, and in the calcining and pre-reduction of nickel laterites for the production of ferronickel. This paper discusses the potential of fluidized beds in theses processes and highlights the advantages of the technology over other technologies, such as rotary kilns. Two primary advantages?(1) that fluidized beds can treat fine materials and (2) that fluidized beds can be integrated with smelters in a way that allows for more efficient use of energy?may well see the technology gain prominence as more deposits of lower grade are mined and industries strive to use their resources more efficiently. In discussing the potential of the technology in the ferroalloy industry, this paper focuses on the application of fluidized beds in the smelting of chromite, nickel laterites, and manganese ores. Central to the successful operation of this technology is a knowledge of how particle properties influence the behaviour and design of fluidized beds.

Jan 1, 2007

By E. Milke, A. Arnold, B. Friedrich, A. Sydykov

CaF2is often used as a fluoride addition to the chloride salt flux in the melting of aluminium scrap. The solubility of CaF2in the chloride salt system is limited. Dissolved CaF2is considered to improve the properties of salt fluxes. Experimental investigations indicated that the solubility ofCaF2in 70 wt % NaCl/30 wt % KCl, German salt flux used in aluminium scrap melting, might be lower than expected according to literature data. The pseudo binary section CaF2-(70 wt % NaCl-30 wt % KCl) was investigated by differential thermal analysis (DTA). The determined solubility of CaF2appeared to be considerably lower than presented in the literature. The pseudo binary section calculated using thermodynamic data partially confirmed the results. DTA allowed us alsoto determine the crystallization temperature interval of the two phase eutectic consisting of the solid solution NaCl-KCl and CaF2. Keywords: aluminium recycling, phase system, salt flux, CaF2, NaCl, KCl, solubility

Jan 1, 2004

By C. Sarkar

Increased competition in today’s global economy has put mineral industry under excessive pressure to effectively manage production assets to generate business wealth. Capital intensive industry (CII) organizations are seeking ways to manage skill resources, internal processes, and organizational networks with a view to reduce the cost of ownership of assets and increase efficiency of operations and service. The emerging concept of Enterprise Asset Management(EAM) is a collection of business processes that allow CII with right focus on return on investment on assets, to make right decisions on planning, acquisition, maintenance, operation, rehabilitation, and disposal of assets. Information technology (IT) can drive significant returns if the infrastructure covers seamlessly all business processes and all systems, like geographic information system, maintenance management, investment management, laboratory information management, and supervisory control and data acquisition system. The simple approach to IT in the past with disconnected silos of technology, information, and business processes cannot deliver the expected benefits under the modern business environment. Identification of business and application component is a prerequisite for the development of an asset management system that links effectively disciplined processes having characteristics of agility, speed, and integration. This paper discusses various issues and outlines the steps for developing an asset management roadmap in an organizsation. It also presents major business and application components of the system. Keywords: Enterprise asset management, Business architecture, Business component, Application component, Asset ownership, Asset operations, Information technology, Capital Intensive industry

Jan 1, 2003

By R. T. Jones

Technical publications in the field of mining and metallurgy have existed for a long time. Recent developments in electronic publishing on websites make it possible to disseminate information more widely and cost-effectively than before. Professional societies have an opportunity to serve their members and their industry by publishing high-quality peer-reviewed papers on their websites as well as in printed form. Older publications can be scanned, and optical character recognition used to provide searchable text. Various business models exist around this process. This paper outlines the approach used by the Southern African Institute of Mining and Metallurgy (SAIMM) to provide free open access to their journal papers and conference proceedings, as well as the work being done by OneMine.org to collect technical papers from a number of international societies and make them available to subscribers via a large database. An approach is outlined that should be of benefit to authors, readers, and society at large.

Jan 1, 2012

By J. Nell

An overview is given of the matte melting process used for the beneficiation of South African platinum group metal (PGM) ores. Most producers use six-electrode furnaces to melt the concentrate and Pierce Smith converters to oxidize excess iron sulphide from the furnace matte. Concentrates from two reef types (the so-called Merensky and UG-2 reefs) dominate the feedstock supply. Concentrate from the Merensky Reef is low in chromium and does not pose significant melting problems. Concentrates from the UG-2reef contain much higher levels of chromium, which results in the formation of chromium-rich spinels during melting. This is attributed to the low solubility of chromium in furnace slag under typical operating conditions (an oxygen partial pressure of 10-8?10-9bar at temperatures of 1550°C to 1600°C). During the converting process, care is needed to avoid excessively oxidizing conditions, which result in cobalt, nickel and copper losses to the slag. High nickel losses result in the formation of Fe2NiO4 (trevorite), which often forms solid solutions with FeCr2O4and Fe3O4. In future, the main challenge in the processing of South African PGM ores will be to cope with ever-increasing levels of chromium in the concentrate. A short-term solution to the problem would be to melt the concentrate under slightly reducing conditions to promote the formation of CrO, which is more soluble in the slag than Cr2O3.A longer-term solution to the problem would be to abandon the current matte-smelting process in favour of an alloy-based process, which would offer total flexibility with respect to the amount of chromium that can be tolerated in the feed. Keywords: Merensky, UG-2, furnace, slag, matte, converting, spinel, chromium

Jan 1, 2004

By H. Jalkanen, L. Holappa

The main role of slag in oxygen converter processes is to absorb the non-volatile oxidation products of hot metal impurities, Si, P, Mn, Ti, V, etc. The importance of converter slag as deP and de Smedia has ceased with implementation of special pre- and post-converter treatments. The transfer from top blowing (LD) to combined blowing converters has decreased the amount of slagged iron that, together with the tendency towards lower silicon and manganese contents, has decreased slag to steel ratio. Still the control of slag forming and behaviour during the blow is of great importance. In this paper the thermodynamics of the slag forming reactions, the role of slag in the modern oxygen converter process for impurity elimination, splashing, lining wear, dust formation and post combustion are discussed on the basis of common knowledge and experience of Finnish steel plants.

Jan 1, 2004

By R. J. Jewell

The storage capacity of any given tailings storage facility (TSF) is a function of the volume available for the tailings, for which the geometry of the final upper surface of the tailings is most important. One of the advantages that can be obtained from thickening tailings prior to discharge is that the tailings can be stacked at a steeper beach angle than is obtainable with conventional low-density slurries. However, there is at present no universally accepted method available for the accurate prediction of tailings beach slopes. This paper examines the current situation with the objective of putting the quest for a method for the accurate prediction of beach slopes into perspective. The paper references published reviews of the best-known beach slope prediction methods. However, there do not appear to be any independently verified projects or published references to projects on which a Class A prediction has been validated for any of these approaches, and in those instances where projects have been implemented correlation of actual with predicted slopes has been poor - often due to differences between the properties of the tailings assumed in the design and those actually achieved in the field. The author also concludes that flume-scale testing cannot be taken as a reliable indicator of full-scale performance, and suggests that the outcome of any current predictive method should be used by experienced practitioners as only one of a range of indicators in order to suggest a range of slope angles likely to result for any given operation. Practice has shown that it is possible to manipulate beach slopes by changes to the disposal technique, such as limiting the rate of discharge per discharge point and by increasing or decreasing yield stress, but the impact of these changes cannot readily be predicted. There are also newly emerging technologies, such as the injection of a polymer into the tailings at discharge, that will enhance the dewatering of tailings and hence expedite the consolidation of the tailings, that could well facilitate the development of steeper beach slopes. The overall conclusion is that with the current state of knowledge, the accurate prediction of beach slopes is not possible. Furthermore, in view of the inherent variability of the tailings parameters from any operation, it may well be of more value to concentrate on developing an understanding of the means by which the tailings parameters may be manipulated by the operators to achieve a given beach slope than to concentrate wholly on developing a generic beach slope prediction model.

Jan 1, 2012

By M. Kahn

This paper traces the rise of South Africa's mining industry in the context of the different state forms that oversaw its development. It commences with the mining-led industrial revolution through four periods of conflict, each of which contributed to a deepening of the industrial base, with constant battles between domestic and foreign capital and labour, and the rise of both Afrikaner and African nationalism. The role of state-owned enterprises has been crucial in shaping this dynamic so that at its peak the public sector and leading mining houses constituted two massive centres of power. This was followed by a thirty-year period of neo-liberal experimentation. The current debate on the 'developmental state' is an attempt to reconstruct the state as a counterweight to capital. It is argued that while the country has moved toward inclusive political and economic institutions, these are both limited by deep 'extractive' characteristics. This transformation failure provides a fertile ground for populism that presents one of the biggest threats to inclusive growth. Cited examples point to the many ways that states have sought to deal with the bonanza that conversion of mineral non-resources into resources brings. Such greenfield resources on state land, or in areas where the state holds monopoly rights, do not present ownership issues. It is suggested that this is the route that South Africa should follow, as the alternative will be conflictual.

Jan 1, 2013

By R. M. Franz

This paper considers potential risks to the health of workers in ultra-deep mines, including barotrauma, physiological effects and toxicity of airborne pollutants. Relevant previous research is reviewed, including work by the Chamber of Mines Research Organization and the Deep Mine Cooperative Research Programme, and recommendations are offered for prospectively limiting pressure-related health risks.

Jan 1, 2005

By M. Ksiazek

Keywords: Thermal conductivity, thermal diffusivity, flash method, specific heat capacity, manganese ore Manganese ferro-alloys manufacturing involves a combination of quality raw materials and an energy source to produce high-quality products with low energy consumption. The thermal properties of manganese raw materials such as ores, sinters, and briquettes, are among the many factors that determine the amount of energy needed for processing. Thermal expansion, thermal diffusivity, conductivity, and apparent specific heat capacity of solid samples and compacted powder samples of manganese ores were examined from room temperature to 1000 °C. The effect of porosity (of the materials used) on the thermal properties was also investigated. The laser flash method and a pushrod dilatometer were used.

Jan 1, 2011

By P. den Hoed, R. I. Rambiyana

"Four sulphide minerals - pyrite (FeS2), pyrrhotite (Fe1-xS), pentlandite ([Ni,Fe]9S8), and chalcopyrite (CuFeS2) - contain the base metals and most of the iron in concentrates of platinum group metals (PGMs). In the pyrometallurgical processing of PGM concentrates these sulphides form a matte during smelting, and iron and sulphur are removed from the matte during the converting process. This paper discusses the roasting of Merensky concentrate in air before smelting, with the purpose of reducing the matte load to the converter.Roasting tests were conducted in a bench-scale rotary kiln at temperatures from 350°C to 700°C. The concentrate tested contained 17.4% sulphur and consisted of 23% pyrrhotite, 16% pentlandite, 11% chalcopyrite, and 2% pyrite. The particles were fine (d50 = 22 µm), and all the sulphide particles were liberated. Roasting in air at 550°C and 650°C for 20 minutes removed respectively 60% and 70% of the sulphur. The iron in the sulphides was oxidized to Fe3O4 (magnetite) at temperatures below 500°C and to Fe2O3 (haematite) at temperatures above 550°C. At 700°C the bed sintered and copper oxides formed. At temperatures below 450°C oxidation was incomplete: pyrrhotite remained and only 30% of the sulphur was removed. Smelting tests were conducted to assess matte fall and the deportment of copper and nickel to matte. It was evident that roasting resulted in lower matte falls (a drop of approximately 60%) compared with matte falls from unroasted concentrate. The iron and sulphur levels in the matte were reduced to below 3.5% and 22% respectively.This paper also briefly describes the mechanisms by which pyrrhotite, chalcopyrite, and pentlandite are oxidized during roasting. For chalcopyrite, the mechanism proceeds through an intermediate solid solution phase, which extends from Cu1.02Fe1.04S2 to Cu2.04Fe0.72S2 to a copper-rich solid solution of bornite (Cu4Fe1.4S4-Cu2S). The oxidation of pentlandite proceeds through a monosulphide solid solution (Ni0.39Fe0.53S-Ni0.74Fe0.15S) to a solid solution of heazlewoodite ([Ni,Fe]3}xS2). These mechanisms are explored in relation to chemical thermodynamics and microstructures."

Jan 1, 2015

Quantitative seismology is an important tool for investigating mineinduced seismicity and the quantification of the seismic rock mass response. The spatio-temporal interpretation of seismic data within an ever-changing three-dimensional mining environment provides some challenges to the interpretation of the rock mass response. A grid-based approach for the interpretation of spatial variation of the rock mass response provides some benefits compared with approaches based on spatial filters. This paper discusses a grid-based interpretation of seismic data. The basic methods employed in the evaluation of the parameter values through space are discussed and examples of applications to different mine sites given.

Jan 1, 2014