Search Documents

To the trustees of The SAIMM Scholarship Fund We have audited the annual financial statements of The SAIMM Scholarship Fund set out on pages 587 to 592 for the year ended 30 June 2005. These financial statements are the responsibility of the trustees. Our responsibility is to express an opinion on these financial statements based on our audit. Scope We have conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes: examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Audit opinion In our opinion, the financial statements fairly present, in all material respects, the financial position of the trust at 30 June 2005 and the results of its operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice.

Jan 1, 2005

By S. M. Bradshaw

In order to assess the requirements for online matching when using a transverse electric field (E-field) applicator to treat mineral ores continuously, the effect of varying load properties on matching has been investigated by simulation. The effective permittivity of the ore to be treated is expected to show variation on both short (< 1 s ) and long (minutes) time scales. By modelling the ore as a series of slices with alternating effective permittivity values, it was shown that permittivity variations on the scale of the expected particle size are attenuated significantly and matching is not required. For variations in permittivity on the length scale of the free-space wavelength, variations in reflected power are at most within ±10% of the mean. This is not considered operationally significant, as extreme permittivity variation over this length scale is unlikely, given the expected distribution of ore particle sizes to be treated. At typical ore transport speeds through the applicator, these variations occur on a time scale an order of magnitude shorter than the response time of typical industrial online matching equipment. This implies that online matching is neither required nor possible for short time scale variation. Long-term variations in dielectric properties can be adequately compensated for by current matching technologies. It is concluded that the transverse E-field applicator is robust to changes in the dielectric properties of crushed ores within the expected range of their variation.

Jan 1, 2012

By R. W. O. Kersten

Backfilling is one of the options available to the mining engineer in mine design. The decision as to the type of backfill is dependent on the purpose for which it will be used. For example, in a situation where high-grade, steeply dipping multiple reefs are to be mined, the purpose would be the following: ? to facilitate maximum extraction; a ? to minimize loss of fines; ? to allow closely spaced multiple reefs to be mined; and a ? to create a working platform. The physical properties required which will satisfy the abovementioned requirements can then be defined; the design of the fill plant, as well as the transport of the fill, will be governed by these considerations. The same procedure is also adopted in deciding on backfill in single- reef gold mines. The first question to be asked is the purpose of the fill. It may be to reduce the energy release rate, for environmental reasons, to reduce timber usage, to improve productivity, to reduce stoping costs, to obtain higher mining extraction, and so on. Only after one, or a combination, of these factors has been selected, can the specifications for the fill be decided on, and the plant designed accordingly. The introduction of backfill at Sheba Gold Mine will be used to illustrate the procedure adopted by Anglovaal in determining the type of fill required.

Jan 1, 1988

By H. M. Krieg, M. J. Ungerer, C. G. C. E. van Sittert, D. J. van der Westhuizen

"The transition metals tantalum (Ta) and niobium (Nb) are of significant importance, for example in the nuclear energy sector where they are used as cladding materials, as well as in capacitors and specialized materials. For these applications a high-purity metal is needed. The separation of Ta and Nb is always a challenge since they are found together in nature and have similar chemical and physical properties, resulting in costly and laborious separation processes. A technology that has been used successfully for the separation of these metals entails solvent extraction (SX)1. While separation was achieved in a previous SX study using a sulphuric acid (H2SO4) medium with the extractants diiso-octyl phosphinic acid (PA) and di-(2-ethylhexyl) phosphoric acid (D2EHPA), due to the absence of speciation data for Ta and Nb it is not clear how the separation occurred.One method that might be suitable for determining the speciation of a reaction is molecular modelling. Calculations based on the densityfunctional theory (DFT) are now used not only for light elements and small molecules, but also metal complexes, heavy metals, and especially metal separation in SX2. In this study the aqueous phase used during SX was investigated by studying periodic systems of Ta, as a metal and in salt form, when it is in contact with H2O and H2SO4. The results were used to predict the reaction mechanism occurring during SX. Results showed that (i) in a 1:1 acid-water ratio, the deprotonation of H2SO4 was endothermic, (ii) in a 1:5 ratio deprotonation was exothermic forming HSO4 -, and (iii) in a 1:10 ratio double deprotonation occurred to form SO42- exothermically."

Jan 1, 2017

By R. Gurung, S. Asokan, Ch. V. G. K. Murty, R. Upadhyay

Tata Steel Limited which is Asia?s first and India?s largest integrated private sector steel company, as part of its vision to grow in related industries is also undertaking the Titania project. The project will involve mining, separation of ilmenite and other valuable minerals from the inland heavy mineral sands deposit in the Indian state of Tamil Nadu. The raw material will be beneficiated to synthetic rutile, titanium dioxide pigment and ultimately to titanium metal. The recently concluded feasibility study revealed that the deposit under consideration has 10.4%of total heavy mineral content and 15.2% slimes of the size below 63 µm, over an average sand thickness of 6.9 metres. The presence of about 15% slimes in ROM sand coupled with scarcity of water at the project site complicates the slimes handling/disposal system, requiring the development of an innovative, efficient and effective system for disposal of slimes. Mineral characteristics of slimes revealed the presence of kaolinite clay, which poses its own challenges in thickening/dewatering of slimes. This paper outlines the detailed studies conducted, including slime characterization, settling and thickening characteristics, and ge-technical studies to arrive at an efficient and effective slime handling/disposal system, with a view to plant saplings on the mined-out reclaimed land with species typically suitable to that environment.

Jan 1, 2007

By N. Watson

Historically the insurance industry&apos;s involvement in any project has been relatively late in the process. Often it was a case of the last item to be ticked off the checklist has been to ensure that the insurance is in place. However, in more recent times insurers have imposed more restrictions on the cover they are prepared to provide, which has in some cases necessitated a change in the contracting structure to accommodate the insurance policy(ies). In addition, changing contractual practices have changed the allocation of risk between the various parties involved. This calls for a more proactive approach to the design and implementation of an insurance program for both the construction and operational phases of any resource project. This paper explores how a risk managed approach to the design and implementation of an insurance program for a resource project can align itself with current management approaches to project development. From the authors&apos; experience, this approach is best adopted early on in the project (often in conjunction with the bankable feasibility study) and follows AZ/NZS4360 to objectively examine and compare a wide range of risk exposures of the project in a time-effective manner across the following areas: ? personnel; ? environment; ? general management; ? compliance - legislation, systems, protocols; ? asset management; ? change management; ? financial impacts to the organisation; ? products/services; ? service delivery; and ? technology. Having identified and then analysed the risk exposures according to common consequence and likelihood ratings the next step is to develop a risk map of all considered exposures. The true value of this approach lies in the development and implementation of a risk treatment plan for identified exposures where the exposure is unacceptable. The plans will lead to the optimal solution to the appropriate risk prevention, risk mitigation and risk transfer options available. This paper also examines other benefits to the project that may arise from adopting a risk managed approach in addition to the ability to design an insurance program which recognises the exposures and the ability of the organisation (and other project parties) to retain risk.

Jan 1, 2007

By S. Potgieter-Vermaak

The main mineral components of the so-called heavy sands (or black sand) are the titanium, zirconium and iron-bearing minerals, rutile, zircon and illmenite, accompanied by various minor and trace amounts of silicates or phosphates, often present together with the rare earth elements. The investigated samples originated from Richards Bay Minerals (RBM) in South Africa, which is jointly owned by BHP Billiton and Rio Tinto, the largest titanium slag producer in the world. The present study focused on the characteristics of samples originating from various points in the separation plant. The heavy-mineral fractions and concentrates of a representative suite of samples were investigated using various analytical techniques to establish the differences in morphological and elemental compositions at the different points in the plant. These techniques included: reflected light microscopy, micro-raman spectrometry (MRS), scanning electron microscopy coupled with energy dispersive X-ray analysis (SEM/EDX) and structural and chemical analyser (SCA). All samples comprised a heterogeneous population of zircon and rutile grains with diverse physico-chemical properties, expressed by large differences in colour and trace element chemistry of single grains. The elemental composition proved the presence of the rare earth elements that appeared to coexist with both Ti and Zr minerals. The percentage of grains hosting inclusions, such as anatase, monazite, quartz, spessartine, augite, epidote and actinolite, varied for each sample and could be uniquely characterized by Raman investigations. Keywords: heavy mineral sands, micro-ram an spectrometry, elemental analysis

The Floatability Characterisation Test Rig (FCTR) is a self-contained, highly instrumented, mobile pilot plant. It was developed as part of the AMIRA P9 project, primarily to determine ore floatability characteristics and to develop and validate flotation plant modelling, scale-up and simulation methodologies. This paper describes the use of the FCTR in validating the AMIRA P9 flotation model and modelling methodology. In 2001 the FCTR was installed and operated in parallel with WMC&apos;s (now BHP Billiton&apos;s) Kambalda Nickel Operation. The FCTR was operated using four different circuit configurations of increasing complexity. Metallurgical surveys, cell characterisation measurements and batch flotation tests were performed around each circuit. This allowed the calibration of a number of flotation models using a combination of data from one, two, three or four circuit configurations. The calibrated flotation models were then validated using predictive validation. To do this, data around a further five FCTR circuit configurations were collected (three of which are presented in this paper). The performance of each of the five circuit configurations was predicted using JKSimFloat V6.1 and the parameters from the various calibrated flotation models. The predicted performance was compared to the experimentally determined performance of each circuit. The validation of the AMIRA P9 model was shown to be largely successful except in the case where the reagent addition (depressant) to the validation circuit was different to that in the calibration circuits. The results also provided information regarding the required complexity of the calibration circuit and how many calibration circuits are required to obtain an accurate prediction of circuit performance. These results have increased the confidence in the AMIRA P9 flotation modelling methodology and have provided important information on what data must be collected to allow the accurate prediction of plant performance using the floatability component modelling approach.

Jan 1, 2007

By G. L. Gomes-Sebastiao, W. W. de Graaf

"Gomes Sand is a quarry operation that produces sand and aggregate for the construction industry. The quarry is experiencing inconsistencies in the fragmentation and poor pit conditions as a result of poor drilling and blasting practices. This results in excessive downtime in the load and haul and crushing processes.A benchmarking exercise of the blasting practices was conducted to evaluate the effect of the inconsistency on the mining cycle. After changes in the blasting practices the downtime was reduced, which improved the crushing plant utilization by 4.9%. The improved blasting practices and more consistent fragmentation decreased the average number of loads lost each month due to jaw crusher blockages from 9.2% to 3.9% of plant throughput. The change in blasting practices also improved pit conditions. IntroductionGomes Sand is a quarry operation that has been in operation since 2009, producing sand and stone for the construction industry. The quarry was experiencing unacceptable blasting results. The repercussions included uneven pit floors, large amounts of oversize rock (>500 mm), and inconsistent fragmentation.The blast results affected the load and haul operations as well as the efficiency of the crusher. This resulted in downtime in the daily operations, and consequent production and revenue losses.The crusher product should have a top size of 50 mm. A blast fragmentation of <50 mm would improve the downstream operations and the crusher throughput.An investigation into the blasting practices was carried out to assess whether the downstream delays can be eliminated by improving the blast results. The exercise included:* Assessing if the designed blast layout is adhered to on the bench* Observing the quality and control of drilling* Observing the charging procedure of the blast-holes* Benchmarking the fragmentation consistency of the blasted rock using current blast design and practices* Analysing the throughput of the crushing plant* Investigating the power consumption of the crushing plant and determine if a change in blasting practices will affect this* Evaluating the hours spent by the hydraulic hammer on secondary breaking."

Jan 1, 2017

By S. K. Mahata, P. G. Suresh Kumar, B. B. Singh

Improvement of post tap hole practices is achievable by mechanized handling of melt during the production of Ferro Chrome, resulting in higher recovery of chromium. The paper deals with modern practices adopted in the production of ferro-chrome since past two decades. The methods and practices deal with various areas : a) Improved method of operating the tap hole by selection of right quality of refractory to maintain the life of tap hole. b) Collection of melt in different types of receptacles like refractory brick lined mild steel ladles, cast steel ladles, cast iron pans being chosen for cost effective and efficient handling. c) Separation of slag and metal, casting of metal, crushing, sizing and stock piling etc. d) Slag disposal and recovery of entrapped metal. The drive behind the above development is continuous improvement, which results in higher chromium recovery and reduces loss of metal in slag by completely mechanized method so as to be at the same level with producers of ferro-chrome in other advanced countries , in the emerging global economy.

Jan 1, 2007

By L. A. Jagger

The world?s second largest producer of platinum, Impala Platinum Ltd, approved two new twin shaft projects at the end of September 2004, Nos. 16 and 20 Shafts. Both shaft projects are stand-alone entities and are being sunk from surface. Previously Impala had embarked on a strategy of extending the life of its third generation shafts by means declines. No. 16 Shaft is the first of a new fourth generation shaft complex, while No. 20 Shaft is the last of the third generation type shafts in the so-called shallow to intermediate mining zone. This paper details the basic designs of each project and covers the initial implementation. Although both projects are twin shaft systems, the access methods from the shafts to the reef horizon differ. Initiatives implemented to speed up the projects are also briefly covered.

Jan 1, 2006

By S. Gqebe, A. Lewis, M. Rodriguez-Pascual

"Gravitational sedimentation of suspensions in various precipitation processes is hindered by colloidal stability. This is due to the high surface charge of the suspension and results in strong attraction/interaction between the ions on the particle surface and counter-ions in solution. Moreover, this strong interaction results in a charge build-up that renders the suspension stable. In order to induce gravitational sedimentation of these particles, a redistribution of ions close to the particle surface is required. We therefore sought to redistribute ions close to the particle surface by applying a magnetic field. This results in the reduction of interparticle electrostatic repulsive forces and a subsequent increase in the zeta potential of a suspension. For the purpose of this study, a copper sulphide suspension was used. Copper sulphide particles were exposed to a range of field strengths for set exposure times and their zeta potential was measured before and after exposure. All particles had an initial zeta potential value equal to or less than –40 mV prior to magnetic field exposure. A significant increase in zeta potential was observed, with values reaching a maximum of –16.5 mV when exposed to a 2 T field strength for 40 minutes. This is due to Lorentz ion shifts resulting from the Lorentz force exerted by the magnetic field on the particle surface. IntroductionMetal sulphide precipitation is a process for treating industrial waste streams with high residual concentration of mixed metal ions and acid mine drainage. This process has been reported to achieve higher metal removal compared with the industrially prevalent lime precipitation, due to the sparingly soluble nature of the metal sulphide precipitates formed. However, precipitation is governed by high levels of supersaturation which favour the formation of fine particles (Lewis, 2010). Consequently, some of the metal sulphide fines formed exhibit slow settling dynamics and thus tend to remain suspended in solution."

Jan 1, 2016

By F. Hees, A. H. Bracken, L. I. Boshoff

"Biological cementation of the Mandena heavy mineral sand deposit in Madagascar was causing difficulty in dredge mining and hence in planning and control of production rates. An investigation was initiated to better evaluate the geotechnical properties of the orebody by defining the distribution and geotechnical properties of the cemented strata, in order to generate a site-specific geotechnical model for the deposit. The geotechnical characterization was developed by an integrated approach using several ground investigation techniques such as piezocone (CPTu) testing, geotechnical drilling, standard penetration testing (SPT), as well as laboratory testing. The final outcomes of the investigation included a 3D geotechnical model showing the distribution and extent of the cemented areas, as well as the typical geotechnical parameter ranges associated with each of the defined geotechnical units. The interpretations developed were incorporated into the mine and production planning to ultimately optimize operational planning and control.IntroductionQIT Madagascar Minerals (QMM) is a heavy mineral sand mining operation at Mandena, near Fort Dauphin in Madagascar. During the final planning and commissioning stages of the project, the need to fully characterize the unusual geotechnical conditions was identified and a geotechnical investigation became necessary.Nature of the problemDuring the commissioning phase it was found that mining production was being hampered by biologically cemented/indurated layers encountered within the sands. Closer inspection of the indurated horizons in the dredging face revealed that these layers contain a high loading of bacteria and fungi. It appears that the bacteria produce an extracellular (outside the cell) polysaccharide (i.e. sugar and carbon salts), which form a gelling biofilm to trap nutrients. There are a number of different bacteria. The fungi, on the other hand, produce a network of fibrous strands that bind the sand grains together. Thus both bacteria and fungi probably contribute to the ‘apparent cohesive’ strength or binding of the indurated sand (Lynn, 2008)."

Jan 1, 2017

By S. Konetschnik, E. Dreyer, A. Filzwieser

"More intense furnace operations require effective cooling in order to achieve low refractory wear and good furnace lifetimes, making cooling technology an important aspect of furnace operations. However, the use of water - today’s standard cooling medium - has some disadvantages, as it can cause problems both during furnace start-up and operation, namely hydration problems, corrosion, and explosions. Apart from these aspects, the energy that is removed by extensive cooling cannot be recovered and is normally lost in the cooling towers.With METTOP’s new patented cooling technology it is possible to overcome the disadvantages of water by using an alternative cooling medium, namely ionic liquids (ILs). The main advantage of ILs is the fact that there is no risk of explosion should this liquid come in contact with molten metal. Furthermore, ILs can be used at higher temperatures than water - up to 200°C. This relatively high cooling medium temperature avoids hydration and corrosion problems and allows recovery of the energy by combining the ILTEC system and the organic Rankine Cycle (ORC) technology, for example.Due to the removal of the explosion risk, much higher safety standards can be achieved, particularly in critical areas such as tap-holes"

Jan 1, 2014

By H. Wagner

The discovery of the gold-rich Main Reef Group of reefs on the farm Langlaagte in 1886 marked the opening of the richest and most extensive goldfield in history. Mining of the narrow reefs progressed from the outcrops to more than 3,5 km, and has made South Africa the foremost mining country in the world. Changes in the political and socio-economic climate create a new challenge to the gold-mining industry. The most significant of these is the emergence of Black trade unions, with their demands for higher wages, improved safety, job advancement, and abolition of discriminatory legislation. Industrial conflicts on gold mines have risen significantly in the past ten years, and are likely to continue in the future, although the causes of these conflicts may change. Events largely outside the control of the gold-mining industry, such as the improved dollar price for gold and the depreciation of the value of the rand relative to major currencies, have enabled the industry to meet the demands for higher wages and to narrow the wage gap. However, labour productivities have improved insignificantly and are a cause of major concern for the future development of the industry. Continued pressure in the industrial-relations area, the inflation of working costs, and the extension of mining operations to greater depths and more difficult areas create major challenges to mine managements and mining engineers. Significant improvements in mining technology, environmental control, and safety will have to be made to ensure the long-term survival of the industry. The unavoidable introduction in deep gold mines of mechanization on a larger scale to meet the requirements of higher labour productivities and a better and safer underground environment will have a major impact on the cost and management structure of these mines. Engineering will assume a more important role on deep gold mil1es, and management styles and structures will have to be adapted to accommodate these changes. The supply of suitably qualified engineers, technicians, and artisans will be a crucial factor controlling the rate of technological change. The industry is well-geared through its Group system to meet these challenges, and to benefit from the experience gained in the operation of highly mechanized mines. However, changes take time to implement and there is very little time left.

Jan 1, 1986

By D. Limpitlaw, A. Alsum, D. Neale

"Ecological footprint analysis (EFA) was first described in 1996 as a measure of carrying capacity appropriated by human activities. EFA is a resource and emissions accounting tool designed to track the demand on the biosphere’s regenerative capacity. Ecological footprints are increasingly used as indicators of organizational and corporate environmental performance and product sustainability. There is a compelling argument to develop an EFA tool for mining companies.To determine the size of a mine’s ecological footprint, land requirements for all categories of consumption and waste discharge must be summed. This land is only made up of the ecologically productive land and water in various classes (cropland, pasture, forests etc.) required on an ongoing basis to provide all energy and material resources consumed and absorb wastes.A challenge in conducting an EFA for a mine is the shortage of accessible data. Undertaking an EFA for a corporation or individual site entails compiling consumption and emissions data (which can be used for other reporting applications). The footprint results themselves highlight the most critical aspects of an organization’s impact on the environment and provide a platform for focusing actions and for educating the workforce to improve their contribution to best-practice operations. This paper discusses the benefits and challenges of undertaking an EFA for a mining company, and provides examples of the various components of ecological footprints associated with mines, as well as showing how an EFA can be used to understand and communicate some of the impacts associated with mining activities.IntroductionFundamental biophysical and economic limits are now being experienced in many countries around the world. Herman Daly, a former World Bank economist, described this scenario as ‘uneconomic growth’, where the costs of growth exceed the benefits (Daly, 2005). This occurs when the economy’s expansion encroaches excessively on the surrounding ecosystem, sacrificing natural capital. Under such conditions the sacrificed natural capital is more valuable that the resulting economic growth. Consequently, the world faces largescale threats to sustainability and especially to the viability and continued existence of the ecosystems that support human settlements (El Zein et al., 2014). In recognition of this sustainability imperative, mining companies are increasingly concerned with their ecological footprint (EF)."

Jan 1, 2017

By Mark Craddock, Johan Swanepoel

In this paper we present The Ultimate Flotation Cell, a newly developed flotation cell that is proving very popular in the industry. All flotation cells have only one purpose and that is the recovery of the required product, the patented impeller and disperser system of the Ultimate Flotation Cell allows total flexibility in order to achieve the optimal recovery. This ability to tune the cell performance provides the optimization of the ?capture? (collection) stage, all existing models address the need for a wide bubble size distribution (100µm-2 mm) to obtain a better flotation size-by-size, Yoon, 1999,Yoon 2000, Franzidis and Manlapig, 1999. The Ultimate Flotation Cell provides flexible performance optimization. This ability to optimize the flotation regime particular to a specific ore is achieved by the following factors: ? The impeller allows vastly improved air induction rates compared to conventional and sparged cells. This ability to induce and disperse large quantities of air, in a controlled manner, allows the cells to be tuned to give the optimal Sb by varying the rotational speed via a VSD which every cell is fitted with. ? The patented impeller gives a very constant and stable air induction rate, which ensures that the cell?s circulation pattern is constant, giving a very stable surface, allowing optimal froth depth. ? Although conventional dart valve, level control can be offered, great success has been achieved with a simple draft tube/sand relief device. ? The cells have a inlet design similar to the old Denver ?Cell-to-Cell? design, which guarantees the at lease one pass through the mixing zone in each cell. Actual plant performance data will be presented from two plants, one in Zambia and the other in the DRC.

Jan 1, 2007

By D. van Heerden, M. F. Breed

"Successful development of projects or life-of-mine strategies requires an understanding of the relative sensitivity of value drivers such as grade, tonnage, energy costs, direct operational costs, and recoveries. For example, the results could vary significantly depending on the grade strategy, given a specific orebody amenable to open pitting.Pit optimization is a very powerful tool widely used in the industry to determine the pit shell with the most attractive value potential. Based on the input parameters utilized, the pit optimization process determines the stripping ratio, mineable reserves, and pit shape, and effectively calculates a cut-off grade, assumed to be the optimal cut-off grade.Once the initial pit optimization process is completed, the need may arise to align the optimization results with the company strategy by further optimizing other criteria, such as maximizing short-term cash flow. This paper describes and discusses the selection of an alternative cutoff grade as a strategic intervention. It involves changing the cut-off grade, effectively increasing the head grade to gain a strategic advantage aligned with the company strategy, with a clear understanding of the financial value impact. With this knowledge, it is clear that pitoptimization establishes the basis for future analysis and refinement.IntroductionIt is common for companies to select the optimal pit shell defining the mineral reserve without much further consideration. However, companies may consider various strategies to optimize the long-term value of the project or to optimize the short-term cash flow. Analysis of the entire life-of-mine value estimation process shows that the selection of a cut-off grade and other parameters should be based on careful analysis. Determining the optimal cut-off grade of ore at a different period during the life of mine to maximize the value is often one of the most difficult challenges for a company.A cut-off grade is the lowest grade that mining activities will target. As a result the average mining grade, which drives the value of a project, will always be higher than the cutoff grade applied.According to Bascetin and Nieto (2007) cut-off optimization is still not widely practised. Cut-off grade optimization is an effort to maximize the value of a project by understanding the capacity constraints in the mine, mill, and the market. At any point during the life of mine, any or all of the limitations on tonnage mined, tonnage milled, and product sold may be constraining the system. To ensure cut-off optimization is done correctly, the capacity constraints must be independent of the cut-off grade."

Jan 1, 2016

By F. T. Cawood

This paper reviews the Mineral and Petroleum Resources Royalty Bill of 2006, identifies potential areas that require further consideration by the National Treasury and, where appropriate, offers alternatives. At its basic level a royalty regime consists of two elements: the base and the rate that must be applied to the base. Deciding on an acceptable royalty rate is a complex matter and can be done only after extensive analysis of all variables affecting the competitiveness of the regime. The proposed royalty rates are in the range of zero to five per cent and are based on sales revenue. It is argued that future investment patterns are more likely to be influenced by market cycles and commodity prices than policy events. Inevitably the current boom in the minerals sector will come to an end and the success of the proposed regime will be known only when profit margins are under pressure. Policy makers must therefore have the long run in mind when developing policies that affect the ability of industry to do business, without the need to renegotiate each time there is a change in the market. A long-run policy must be sufficiently flexible to allow for consistently fair sharing ratios and splitting of revenues between government and industry. Although broadly in line with international practice, the current version cannot be regarded as internationally competitive and efficient. In order for the royalty bill to become internationally competitive, promote beneficiation of mineral production and adequately compensate the State for the loss of a national resource, the National Treasury should heed the following main recommendations in this review: 1. Abandon the notion that each mineral product must have its own royalty rate; 2. Introduce an NSR type royalty that allows for value-addition costs to be deducted from the base; and 3. Provide for automatic relief through the use of a sliding-scale mechanism based on ability to pay, e.g. the X-Factor used in the gold mining tax formula.

Jan 1, 2007

By E. J. Magri, A. Couble

Kriging estimates of geological resources are sometimes conditionally biased because the kriging plan contains too few samples. This may be done purposely in order to match the variance of the estimates to the true block dispersion variance. This work aims at evaluating the influence of conditional bias over the ultimate optimum pit design in relation to its shape, size and NPV (Net Present Value of profits). It has been restricted to two real case studies: a ‘carrot shaped’ gold porphyry in northern Greece and a manto-typeexotic copper deposit located in northern Chile. The methodology applied to each deposit consisted of generating a ‘real block model’ and four resource estimates by the use of conditional simulation and the application of four different kriging plans to the drillhole databases respectively. The estimation models vary in smoothness and conditional bias. Ultimate optimum pits were determined for the ‘real’ and the four different kriging models. Pit comparisons lead to the following conclusions: •In the worst case, conditional bias overestimated the project&apos;s NPV by 32% and 5% for the gold and copper deposits respectively. •The overestimation of high grades is more relevant than the underestimation of low grades. This resulted in a tonnage over-extraction of 148% and 1% for the gold and copper deposit respectively. This difference was attributable to the vastly different geometry of the deposits. •The smoothing effect of kriging, without or very little conditional bias, produced open pits that were different to the ‘true’ (ideal) ones and furthermore, underestimated the project&apos;s NPV by 10% and 6% for the gold and the copper deposits respectively. •Other factors that influence the optimum open pit design and to some extent control the effect of conditional bias are: the cut-off grade, the orebody geometry and distribution of grades within it and the amount of over-burden. Keywords: conditional bias, ultimate pit design

Jan 1, 2003