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In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

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 N N/A

To the members of The South African Institute of Mining and Metallurgy We have audited the annual financial statements set out on pages 239 to 245. These financial statements are the responsibility of the Institute?s Council. Our responsibility is to express an opinion on these financial statements based on our audit. Scope We have conducted our audit in accordance with statements of South African Auditing Standards. These standards require that we plan and perform the audit to obtain reasonable assurance that 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 ?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 Institute at 30 June, 2000, 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, 2000

By W. Banda

Paper written on project work carried out in partial fulfilment of Phd. (Process Engineering) degree* The recovery of cobalt and copper from waste slag was studied in a plasma DC-arc furnace in reducing conditions. Three fluxes, CaO,CaF2, and TiO2, were investigated for their influence on selective recovery of cobalt into an iron-rich alloy. A further investigation on the influence of furnace power on the reduction of slag to recover cobalt to the alloy showed that a change in power setting had an unexpected effect on the recovery of metals to the alloy, in that selectivity of base metal recovery over iron recovery decreased at an increased power level. Keywords: DC-furnace, reduction, nonferrous, slags

Jan 1, 2004

By Dave Capstick, Ken Garner, Jim Porter

Technologies and systems used in the management of energy consumption in the mining and metal processing industry are well understood and documented from the supply side of the business. It is our contention that in many instances, through a more complete understanding of the demand side of the business, based on the detail of the operations plan, will provide greater lead time in terms of the design, implementation and utilisation of power supply infrastructure. Thus, optimal management of demand in a proactive manner, based on production requirements, will ensure both security of supply as well as continuity of operations. This paper describes the technology and methodology that is being developed to enable the above statement to be achieved. We use a case study to demonstrate the ability of the tools and methodology and conclude by outlining the business benefits achievable as well as the future developments emanating from this initiative.

Jan 1, 2005

By B. J. Madden

Over 206 million tons of hard coal were mined in South African collieries in 1996. Some 132.5 millions tons came from underground operations and approximately 120 million tons came from bord-and-pillar workings resulting in between 100 000 and 150 000pillars being formed. Coal pillar design remains a significant feature of South African mining. This paper reviews South African coal pillar design procedures in the light of 90 pillar collapses that have occurred since 1904. It shows that, while the current pillar strength formula is still valid within the original empirical range of Salamon1,cognisance must be taken of local conditions. Current South African coal pillar research is attempting to account for the variations in local conditions with the emphasis on the effect of discontinuities and pillar deterioration. It is suggested that a more holistic approach to pillar design be adopted to include a design methodology that examines the stability of the roof, pillar and floor of the underground workings. Using this approach, deviations from the empirical database used by Salamon and Munro will be incorporated into the design methodology resulting in more stable underground workings.

Jan 1, 1998

By J. M. Schaekers

In the first part of the article, the authors give a broad overview of the chemistry and some engineering aspects of bioleach processes, eventually leading to the important and critical issue of the stability of arsenic-containing residues, especially those derived from bioleaching of sulphidic gold ores. In the section ?Factors affecting arsenic stability? they give an excellent summary of the factors normally affecting the stability of such residues. This is followed by some valid comments on the suitability of a single leach test to evaluate the long-term stability of solid waste streams. However, they fail to mention that, up till now, no tests procedure has been accepted by either environmentalists or the mining/processing industry as a valid method to test the long-term stability of solid wastes. Their own method is no exception, although, like many others, it is useful to identify potential problems with solid wastes considered for disposal.

Jan 1, 2001

By S. -H. Chang, C. -I. Lee, Y. -K. Lee

Based on results from triaxial compressive tests, an experimental damage model to simulate post-peak behaviours as well as nonlinear behaviours before peak strength was developed. In order to consider pre-peak behaviours, variations of elastic constants at each damage level were regressed by functions of confining pressure. In addition, post-peak behaviours were simulated successfully by using Hoek-Brown constants. As results, the experimental model could predict nonlinear behaviours, peak strengths and stiffness changes observed in experiments. Basé sur des résultats des essais compressifs à trois axes, un modèle expérimental de dommages pour simuler des comportements de poteau-crête aussi bien que des comportements non-linéaires avant la force maximale a été développé. Afin de considérer des comportements de pré-crête, des variations des constantes élastiques à chaque niveau de dommages ont été régressées par des fonctions de pression d'emprisonnement. En outre, des comportements de poteau-crête ont été simulés avec succès en employant des constantes de Hoek-Brunes. Comme résultat, le modèle expérimental a pu prévoir des comportements non-linéaires, des forces maximales et des changements de riidité observés dans les expériences. Auf Basis der Ergebnisse des dreiaxialen Drucktests wurde das experimentelle Schadensmodell, das sowohl das nicht-lineare Verhalten vor der maximalen Stärke als auch das Verhalten nach der maximalen Stärke simulieren kann, entwickelt. Um das Verhalten vor der maximalen Stärke zu berücksichtigen, wurden die Veränderungen der elastischen Konstante bei dem jeweiligen Schadensniveau durch die Funktionen des begrenzten Drucks zurückgegangen. Außerdem wurde das Verhalten nach der maximalen Stärke unter Benutzung von Hoek-Brown Konstanten erfolgreich simuliert. Schließlich konnte das experimentelle Modell das nicht-lineare Verhalten, die maximale Stärke und die Veränderungen bezüglich der Steifigkeit während der Experimente voraussehen.

Jan 1, 2003

By L. C. Stilwell

Input-output analysis is a major branch of quantitative economics, and is used to analyse the flow of goods and services between production sectors in a national economy. Its purpose is to determine the relative value-adding capacity of each sector. The model has also, in recent years, found increasing use in assessing the environmental and ecological impact of development projects. It has, however, never been applied to individual production facilities, such as large mines, which themselves have complex economic structures, through which there is a flow of goods and services. Conventional cost and accounting systems, as used on mines, treat production sectors as separate cost centres, and do not determine the inter-relationships between them. This can lead to incorrect conclusions on the relative value of sectors and their impact on the total economic performance of the facility. This paper explains the basic principles of input-output analysis, and presents an example of its application to a simplistic model of a mine, which is used in the absence of any real data. The paper concludes that, by forcing definition of the value adding function of each sector, input output analysis will facilitate control of inputs, or costs. This will result in optimal application of resources and exploitation of ore reserves. The authors realise the model needs to be tested on an operating mine, and hope this paper will result in an opportunity to do so. The authors wish to thank the anonymous referees for their valuable comments.

Jan 1, 2000

By David Mitchell, Daan Delport, Frik Marx, Mike Shapiro

The use of copper cooling elements to enhance refractory lining life in pyrometallurgical vessels is common in modern furnace design. Copper elements typically incorporate a base panel with cast in cooling passages and an integral extended surface (formed of pins, fins or similar) onto which suitable refractory material is cast. The metallic, conducting parts are located towards the cold face of the lining, with the refractory material interposing between the coolers and the process. The coolers are designed to arrest wear of the refractory material by freezing a layer of slag or partially reacted material onto the hot face, thereby rendering the lining inert to further attack [1]. These coolers have achieved success in new furnaces and relining of existing vessels. The freeze layer is prone to mechanical damage during operational and process instability. The coolers must be capable of extracting the additional heat flux under upset conditions to facilitate rapid self-repair of the freeze layer and prevent further refractory wear in the intermittently exposed areas. However, operational experience has shown that the high heat flux capabilities of the copper coolers have some disadvantages, especially in processes producing vapours which form corrosive compounds when condensing onto the cold surfaces of the coolers. When corrosive conditions develop, the entire composite will fail due to loss of structural integrity, and as a result of leaks from the cooling water passages. This paper describes recent developments in the approach to the design and manufacture of copper cooler panels customized to achieve specified heat fluxes and temperature profiles, thereby reducing the formation of corrosion mechanisms in applications with corrosive gaseous environments and enhancing refractory lining life. Condensation formation prevention is achieved by adjusting the geometry of the cooler and selection of suitable materials of construction.

Jan 1, 2007

By T. Proietti, L. Mongiovì, L. Simeoni

Reliable estimates of the kinematic characteristics of movements are obtained by using a statistical model SSM. This model represents a useful tool for the management of alert and alarm systems. L'élaboration des données du déplacement médian d'un modèle statistique SSM opportun fournit des estimations fiables des caractéristiques cinématiques du mouvement. Le modèle peut être ainsi utilisé pour la gestion des systèmes d'alarme. Die Bearbeitung von Bewegungsdaten anhand eines geeigneten statistischen Modell SSM ergibt vertrauliche Abschätzungen der kinematischen Eigenschaften der Bewegung. Das Modell kann also für das Management von Alarmsystemen verwendet werden.

Jan 1, 2003

By U. Sachse

This paper explores a systematic approach for mining decision-makers to use when faced with choosing which method to use for a specific rockpass length. The different excavation methods available in the broad South African mining industry are compared against a number of critical parameters, as applied to rockpasses of varying length. This approach is not meant as a definitive, prescriptive planning tool, but rather as a proposed approach to enable designers and planners to choose the best system to excavate their specific rockpasses

Jan 1, 2005

By M. J. Nicol

Mr Vegter has analysed, in some depth, the approximations made in the treatment of the kinetic data presented in the original by ourselves (ref.1) and has come to the conclusion that ?under the experimental conditions used by Adams and Nicol (1986) the steady-state assumption was inaccurate?. We are acutely aware of the fact that the experimental method adopted does not permit the attainment of a true steady-state in the elution reactor. However, this does not eliminate the attainment of a pseudo steady-state by a suitable choice of the experimental parameters with the accompanying simplification of the analysis of the data with the aim of drawing the reader?s attention to the most important objective of the paper viz. the effect of various operating parameters on the rate of elution of gold.

Jan 1, 1997

By K. Collett

Elandsrand started shotcreting back in 1991. This paper will share the experiences of the mine by looking into the past, the present situation and the way Elandsrand plans to approach the future. It looks at the application of drycrete and discusses the factors that led to the introduction of wet fibre reinforced shotcrete. The logistical constraints of getting shotcrete material underground will be solved by the development of an underground batch plant, using run of mine waste rock as an aggregate.

Jan 1, 1998

By M. D. Mwema

Copper oxide ores deposits in the Katanga province of the Democratic Republic of Congo (DRC) contain at variable level cobalt oxide minerals. In contrast to copper oxide minerals which readily dissolve in the sulphuric acid solution, the cobalt oxide bearings are difficult to dissolve, especially if cobalt is present in the third oxidation state (Co2O3). This species become soluble after reduction of Co+3in Co+2. In practice, the use of reducing agent is therefore necessary in order to transform the insoluble minerals into soluble cobalt sulphate species. The following reducing agents are currently used at the Shituru plant: ferrous ions, which are present in leach solutions, pulverised copper or sodium meta bisulphite (MBS). Due to the high consumption of reducing agents (0,8 t MBS/t of solubilized Co; 1,2 t Cu/t-Co), cobalt production is expensive. The use of sulphur dioxide as reducing agent was then investigated in order to reduce operating cost. This reagent also presents the advantage of sulphuric acid production during the leaching process. It has been added in the leaching vessel (tank). From the laboratory and industrial tests, selective leaching of cobalt (78%) has been performed. The cobalt leaching kinetic depend on sulphur dioxide dosage. Dissolution of copper, iron and manganese remained very low. No emanation of SO2 gas was observed during the process.

Jan 1, 2002

By I. V. Lunkin, E. B. Rakishev, B. R. Rakishev

In mining the method of statistical tests is used by solving of problems, exposing to influence of random factors. Such problems are: rational selection of equipment set; co-ordination in time of different processes; interaction between some processes and kinds of works. Usually it is considered that Monte Carlo method proves its value in the first place in that problems, which allow theoretical-probabilistic description. Analysis of numerical solution of mining-economic problems shows that the method of statistical tests may be used successfully by solving of determinate problems, which are solved usually analytically or by the methods of mathematical programming. We are talking about the problems of optimal use of resources, expedient placing of equipment, effective use of investments, rational planning of stripping and extracting works, groups of mining enterprises and about different variants of transport problem. In the report possibility of the method use is studied at an example of typical technical-economic problems solving. By solving of these problems the variant of the method with uniform distribution of random quantity had been applied and built-in random number generator of visual modelling system VisSim had been used. By algorithms elaboration it seems very perspective to use combination of the Monte Carlo method with traditional methods of numerical solving of the problems (methods of linear, nonlinear and dynamic programming and so on). Keywords: method of statistical tests, mining-technical problems, diapason of random number sample, efficiency function and its extremum.

Jan 1, 2003

By B. Samanta

A quality characteristic analysed through construction of the Shewhart control chart is required to be normally distributed. In mining applications, this assumption is often violated as many quality characteristics follow skewed or lognormal distribution. In this paper, two methods were investigated using a heuristic approach for setting up the control limits for a skewed population. Based on these approaches a Mode chart, and a Weighted Variance (WV) control charts were constructed. The performance of the proposed methods was compared with the normal based Shewhart method through a case study conducted in a surface mine supplying iron ore to a steel plant. A simulation study was also conducted to evaluate the effectiveness of the proposed methods over the Shewhart method. The study revealed that the Shewhart control charts generated more out of control alarms compared with the Mode and Weighted Variance control charts for a skewed population of Fe%. The simulation results also revealed that for extremely high skewed population, the WV control chart and Mode control chart provided higher probability of coverage than the Shewhart method; although the detection rate (probability of detection) of out of control condition for these methods was slightly reduced compared with Shewhart method.

Jan 1, 2004

By P. Sharma

Longwall panels facing wind blasts have been investigated at both Newstan and Moonee Collieries in the Newcastle Coalfield under the Wind Blast Project of the School of Mining Engineering, The University of New South Wales. The fluid mechanics involved in the compression and expulsion of air during wind blasts have been defined and the overpressure and air velocity time histories utilized to determine the wind blast parameters and define the relationship between them. The characteristics of wind blasts pressure pulses in mine roadways show some similarity with transient phenomenon like air blasts from explosives and shock waves from the failure of pressurized vessels. The peak wind velocities in roadways, however, exhibit marked deviations from theoretical predictions based on compressible fluid flow and Rankine-Hugoniot relationships applied to goaf air displacement and panel geometry. Peak overpressures and wind velocities have shown a positive correlation with the areas of goaf falls, with the values peaking off for larger areas. The field investigations have helped the mine management in risk assessment and in evaluating the success of induced caving by hydrofracturing to mitigate the hazard.

Jan 1, 2004

By A. Lane

The socio economic risks of mining in South Africa have been emerging for some time now, and have been brought into sharp relief by recent events in the platinum sector. The slow pace of social upliftment in the country has lead to widespread social unrest with consequent calls for different forms of resource nationalism. Fundamentally, the key stakeholders are not fully aligned, and are not engaging productively. This poses significant above-the-ground risk to mining companies. Measuring social impact, deploying inclusive solutions and engaging effectively with stakeholders are three ways in which mining companies can mitigate this risk.

Jan 1, 2013

The paper deals with the results of dynamic tests carried out on a range of surface support liners consisting of combinations of mesh (various types), shotcrete, and wire rope lacing. The testing was carried out over the period 1993 to 1998. The dynamic testing method made use of drop weight impact loading of test samples which attempted to simulate realistic in situ conditions, and the range of loading imposed was equivalent to small to severe rockburst conditions. The results of the testing provide quantitative data, in the form of input energy, which is relevant for support design and for the choice of support types appropriate for situations in which significant mine-induced seismicity occurs or is expected to occur. In addition to the wire mesh and shotcrete liner systems tested, estimates of energy capacity are made for other, untested, systems.

Jan 1, 2001