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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

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Jan 1, 2009

By N. E. Yasitli

There is a considerable amount of lignite reserve in the form of thick seams in Turkey. It is rather complicated to predict the characteristics of strata response to mining operation in thick seams. However, a comprehensive evaluation of ground behaviour is a prerequisite for maintaining an efficient production, especially when top coal winning by means of caving behind the face is applied. A comprehensive modelling of deformations and induced stresses is vital for the selection of optimum production strategy. In this study, numerical modelling and analysis of a longwall panel at Omerler underground coalmine have been carried out by using the software called FLAC3D developed based on the finite difference technique. Firstly, a 3-D numerical model of the M3 panel has been prepared. Secondly, induced stresses formed around the longwall face have been determined as a function of face advance where the face was located at the bottom of thick coal-seam. Results obtained from modelling studies have revealed that the front abutment vertical stress was maximum at 7 metres in front of the face and magnitude of front abutment stress was found to increase up to a distance of 200 metres away from the face start line. As the face was further advanced after 200 m from the face start line, there was not any significant change in the characteristics of front abutment stresses. Results of numerical analysis of the panel were in good agreement with in situ observations.

Jan 1, 2005

By P. J. N. Pells

A good thing is becoming a bad thing. Rock mass classification systems, that are so excellent for communications between engineers and geologists, and that can be valuable in categorizing project experience, are emasculating engineering geology and rock mechanics. Some engineering geologists have been sucked into thinking that Q and RMR values are all that is needed for engineering purposes, and seem to have put aside what can be learned from structural geology and geomorphology. Many rock mechanics engineers seem to have forgotten the scientific method. This paper attempts to redress the situation by showing how mechanics can be used in rock engineering to design with a similar rigour to that used in the fields of structural engineering, hydraulics and soil mechanics. It also attempts to remind practitioners of what can be achieved by skilled engineering geology.

Jan 1, 2008

By A. M. Neale

Kriel Colliery has experienced some sub-standard blast results on the overburden. Blast results are considered poor when the fragmentation is too big, back break into the new highwall, capping is experienced and/or excess overburden material is thrown into the void. Poor blasting leads to lower productivity, equipment breakdowns, and poor drilling and blasting results on the adjacent blast, contamination of coal or loss of coal. A simulation was developed in Microsoft Excel to model blasting results while changing various parameters. From the simulation results, it could be seen that a change of blast design could be beneficial. As an example, smaller drilling patterns were simulated (10 m x10 m to 8 m x8 m, and 8 m x8 m to 7 m x7 m in Pit 5 and Pit 6 respectively) in combination with changes in explosives (P700 emulsion vs. ANFO) and drill bit diameter (311 mm vs. 251 mm). The results show that each of the options has a specific scenario that will be most beneficial to the mine. These results are quite specific and subject to variable inputs. The purpose of the example is to demonstrate how the simulation can be used as a tool to asses blast design variations.

Jan 1, 2010

By W. D. Northrop

This paper gives an account of the development of a technique whereby the vertical limits of geological horizons may be identified by the use of vertical variograms on the mineral of economic interest. This information may supplement or guide the correct subdivision of the individual horizons into meaning full data sets by diligent geological observation. This process then improves the quality of the variance modelling of the gold distribution in the plane of the individual layers and therefore enables better estimates to be made into the grids or blocks of the mine model. The technique is explained by an account of the development work, which was performed, on duplicate superimposed reef horizons in the Kimberley formations. The paper then shows how the correct approach was developed to evaluate the mineralized layers in a multiple stacked conglomerate layer sequence in the Elsburg reefs of the Witwatersrand Rand System at the Target deposit. The method of categorization of resources according to confidence in the estimate is also explained. The feasibility processes carried out on the three-dimensional model, in accordance with the SAMREC code are also described. An example of the development of a reconciliation process utilizing chip sampling is also explained.

Jan 1, 2003

By U. Weber

The effect of grinding media performance on milling and operational behaviour was demonstrated under different selected conditions of calcium carbonate slurry milling. A variety of grinding media materials and bead sizes, along with two different stirrer tip speeds, were used in the grinding process to generate a particle size reduction of the calcium carbonate (CaCO3). To determine the optimum milling parameters the collected test data were used to calculate and evaluate specific energy as well as stress intensity under different milling conditions. Keywords: Grinding, mill media, high energy mills, industrial minerals, precious metals.

Jan 1, 2010

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 M. Hooman, W. M. Marx, R. C. W. Webber-Youngman

This paper discusses a study that investigated different underground bulk air heat exchanger (>100 m3/s) design criteria. A literature review found that no single document exists covering all design criteria for different heat exchangers, and therefore the need was identified to generate a guideline with decision analyser steps to arrive at a technical specification. The study investigated the factors influencing heat exchanger designs (spray chambers, towers, and indirect-contact heat exchangers) and the technical requirements for each. The decision analysers can be used to generate optimized, user-friendly fit-for-purpose designs for bulk air heat exchangers (air cooler and heat rejection). The study was tested against a constructed air cooler and heat rejection unit at a copper mine1. It was concluded that the decision analysers were used successfully. This tool (decision analysers) can be used by engineers for the efficient and cost-effectively design of heat exchangers.

Jan 1, 2015

By J. Kirsch

Keywords: Pyrometallurgy, pneumatic transport, pneumatic transport Dense-phase pneumatic injection has begun to replace more traditional furnace-feeding systems. The paper describes the technology as it is applied to processes where the back pressure at the point of injection is greater than 50 kPaG. It reviews earlier systems of injection and more recent developments that address concerns for instantaneous control in modern smelters. The new technologies fall into two groups, (1) modified pressure-difference control (sub-divided into simple and complex) and (2) mechanical-feeder-based control. Features of current injection systems include feed splitting in two forms, passive and active, and co-current injection.

Jan 1, 2006

By M. -O. Suk, S. -K. Jo, S. -C. Shim, J. T. Kim, S. -H. Kim, C. -W. Seo, J. -S. Kim

An equilibrium study was carried out at 1873 K to ascertain the effect of carbon in CaO-SiO2-Al2O3-MgO-MnO-FetO slag systems on their FetO and MnO activity coefficients, representing the slag?s thermodynamic potential for steel reoxidation. Both ?FetOand ?MnO showed not only a sharp increment, but also a simultaneous slow decrement by increasing carbon content in slag, suggesting opposite roles of the carbon according to its stable forms. XPS (X-ray photoelectron spectroscopy) was introduced to clarify the stable forms of carbon in slag. XPS results prove that carbon dissolves in slag as carbonate, and carbide ions under oxidizing and reducing atmospheres, respectively. It was concluded that carbonate ions increase ?FetOand ?MnO, and that carbide decreases them. This paper suggests an application method of the present results to actual ladle refining processes, in order to enhance steel cleanliness without decreasing (FetO + MnO) content in slag. Keywords: carbon, slag, activity coefficient, FetO, MnO, carbonate, carbide, XPS, reoxidation, cleanliness

Jan 1, 2004

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Jan 1, 2009

By Pieter de Waal

The use of valuable minerals is a necessity to maintain a modern society. Not only the iron, aluminium, coal and oil that are used in large quantities, but also the uranium, copper, vanadium, tungsten, antimony and many others play an essential role in the bigger picture of our modern civilisation. Minerals occur in a form and in places determined by a long history starting at the dawn of creation. Over billions of years the elements have combined in wondrous combinations and structures. They have been broken up by massive explosions, movements in the earth's crust and erosion by wind and water. They have been restructured and recreated in even more configurations by the application of heat and pressure, leached by and exposed to new chemical compounds. The result is that most valuable minerals are found in impure form and mixed up with other, less useful waste material. 2. Mineral Beneficiation The processes used for the purification and enhancement of an ore, to satisfy the needs of downstream applications, are collectively referred to as mineral beneficiation. Mineral Beneficiation starts in the mine where only that portion of the ore, that can be economically processed, is selectively extracted. It may also include ore blending, to ensure a more consistent feed to the following stage of valuable mineral recovery. The next stage in mineral beneficiation is the liberation of the valuable minerals from the gangue. This is achieved by blasting, crushing, milling and grinding down to an adequately fine grain size to facilitate good separation. Separation can be achieved by a variety of different techniques. ?Screening coarse from fine particles is an easy method if the valuable mineral is dominant in a certain screen fraction. ?Magnetic separators can differentiate minerals on the basis of their difference in magnetic susceptibility. ? Electrostatic separators differentiate on the basis of electrical conductivity. ? The differences in density are exploited in spirals and jigs. ? Particular surface properties provide a separation technique in flotation. ?The selective sorption properties of a collector medium are another option.

Jan 1, 2007

By J. L. Fuentes-Cantillana, J. B. Solar Menéndez, A. O. Cámara

The Principality of Asturias is a region situated in Northern Spain with two centuries of tradition in underground coal mining. In addition, its uneven relief has obliged the construction of a great number of tunnels both for railways and roads. Basing on this experience and an ever increasing need to improve on safety, the Barredo Foundation dependent on the Regional Government and the University, provides and manages a Centre for Research of Fires and Ventilation in Tunnels. The Centre has as its most important infrastructure, a tunnel 540 m long, 9,5 m wide and 8,0 m high at centre. This section coupled with ventilation equipment allows the simulation of risk conditions at real scale, which is achieved by modifying the geometry of the section and through two powerful stations situated one at either en of the tunnel. In addition, the Centre houses two test benches for fans and electrical motors at high temperatures. One bench with a re-circulation conduit is the most appropriate for tests in Transversal and Semi-transversal type of installations. The other, is for the testing of electrical motors or fans which operate in zones where the surrounding temperature is high. In this Centre, training has also been developed for Fire Fighters and Civilian Protection Personnel who have to work in fire and smoke rescue conditions in underground structures. Testing conducted at real scale enables this formation and also to improve different computer programmes in the field of Fires and Ventilation.

Jan 1, 2003

By B. J. du Plessis

Automation of the conventional grinding circuits of Palabora Mining Company (PMC) required that adequate instrumentation and a control system had to be put in place, after which extensive testing had to be done to evaluate different grinding control strategies. The objective was either to optimize the particle size from the grinding circuit, or to increase milling circuit throughput while maintaining particle size at existing levels. Prior to automation of the process as described below the circuits were controlled manually. No on-line information on cyclone feed densities, cyclone feed flow or cyclone overflow particle size was available. This type of control relied heavily on interpretation of the process parameters by the operator and on his ability to make informed decisions on what the set points should be. An integral component of the automation process was the installation of a SCADA package (SysCad SDX) for implementing the on-line control strategy. A self-correcting model for prediction of cyclone particle size was developed and implemented on the SDX. The model is calibrated using values from the particle size analysers while they are operational. If the particle size analysers choke or fail for any reason, the model continues to provide a good estimate of the particle size. This technique ensures that a continuous particle size indication is available compared to the intermittent reading from the instrument. The continuous signal allows particle size to be used as a process variable for control purposes. A strategy was developed and implemented which allows for the production of a controlled grind size from the conventional milling circuit to the flotation circuit. The grinding control strategy allows for the control of particle size from the individual cyclone overflows. This strategy allows the operator of the process to increase or decrease production rate by specifying a coarser or finer grind size required for flotation.

Jan 1, 2001

By R. J. Kendall

As we enter the new millennium, the South African mining industry has to ensure that it becomes more competitive if it is to survive in the ever more demanding global environment. Traditionally, mechanization in narrow stopes has been limited to the use of scraper winches, and numerous mechanization attempts have been restricted to pilot projects operated on an extremely limited scale (with varying degrees of success). The benefits of hydropower are well documented, and Northam Platinum has shown these benefits to be achievable on a mine-wide basis. However, the equipment originally developed for hydropower systems has followed the traditional labour-intensive approach commonly used in deep level narrow stoping operations. The problems experienced with the hydropower system are discussed and the rationale for developing alternate technologies is explored. The hydropower system has shown to be a versatile powering medium which can be harnessed for a diversity of uses. It (hydropower) enables the mining engineer to change traditional paradigms and to design an entirely new approach for optimizing the mining operation based on explosive techniques. The system developed for Northam consists of the following: ?Purpose-built stope drill rig operated off the hydropower system with special features to ensure accurate drilling patterns throughout the length of the blast hole ?Purpose-built high rate cleaning system for rapid transfer of fractured ore to the stope orepass ?Redesigned stope layout to facilitate in-stope water control and to recover fines from the run-off water ?Purpose-built drill rig for rapid establishment of reef raises and advanced strike gullies ?Purpose-built drill rig for flat end development. On both types of development end rig, emphasis is placed on ensuring accurate drilling patterns throughout the length of the hole to maximize linear advance per blast. The paper discusses the implementation of the Northam system on a large scale as well as current initiatives to further improve on the efficiencies of mining operations. It concludes by emphasizing that mechanized hydropowered stope technologies are in their infancy and thus offer unlimited scope in progressing beyond today?s paradigms to present as yet unthought of solutions for optimizing deep level ore extraction.

Jan 1, 2000

By J. Talja

Keywords: drying, steam drying, concentrates, copper, lead During the past twenty years steam drying has become a prominent technology for drying of non-ferrous metals concentrate. This is mainly because of its low energy consumption and very low emissions. The first applications of significant capacity were stationary steam dryers, which however, faced severe challenges in maintenance costs and availability. That technology was soon replaced by Kumera?s rotary steam drying technology, which has been the dominant technology in new dryer installations world-wide for the past ten years, ever since the first installation in Hamburg in 1999. There are ten Kumera steam dryers in operation today and five more to be commissioned during 2011. Practically every dryer is different owing to continuous development, new innovations and operational experience with continuous feedback from the operators. Most significant improvements relate to capacity increase with the Kumera steam-dryer family, new feeder systems at the wet end, a completely new design of the dry material discharge with increased availability, heating element design and material selection, and control systems. This paper discusses the modifications and improvements introduced which have enabled the Kumera steam dryer to become the global leader in new dryer installations.

Jan 1, 2011

By B. P. Watson

Crush pillars have been incorporated into a mechanized, low-profile trackless system at South Deep Gold Mine. These pillars had to be designed to fail near the face and to ensure that pillar failure is contained within the pillar, to avoid bursting and the risk of high loads being generated during a seismic event, respectively. PoweRite backfill bags were recommended to maintain the integrity of the pillars; except in the main access drives, where the sidewalls were to be supported on 5.6 mm diameter weldmesh and yielding anchors. The results of a trial site investigation exceeded expectations, showing a residual pillar strength of about 37 MPa for a newly formed pillar and 8 MPa for a pillar subjected to seismicity and a closure of more than 300 mm. The introduction of these pillars has improved the rock mass conditions because of the active nature of the support, compared to the previous passive backfill method. Importantly, the pillars have increased mining efficiencies and improved face availability. A potential cost saving to the mine of R140.9 million could be realized over a period of 10 years.

Jan 1, 2014

The influence of varying amounts of magnesia, silica, and alumina in iron ore sinter on its mineralogy, reducibility index (RI), reduction disintegration index (RDI), physical breakdown (AI and TI), and production properties (coke breeze rate) were examined. It was found that the mineralogy of iron sinter can more easily be predicted from its chemical composition than from the RI, RDI, AI or TI. Anticipating the consequence that varying amounts of MgO and SiO2would have on sinter properties is complex, and not necessarily predictable. High concentrations of Al2O3in the sinter result in high concentrations of the SFCA phase, but with drastically deteriorated properties. This study also confirmed that the form in which fluxes are added to the raw material sinter mixture affects the mineralogy and properties of the produced sinter.

Jan 1, 2010

By H. Aykul

The choice of which mining method to use at many large surface coal mines is often dicated by what machinery is available or what experience the mine management can offer. One of the most significant surface coal mines in Turkey is owned and operated by the Turkish National Coal Board, located to the west of the city of Kütahya. The Seyitömer Lignite Enterprise (SLE) extracts low quality coal, the majority of which is supplied to an adjacent power station. The coal seems at SLE contain bands of ash which under normal mining conditions are extracted with the coal. This increases the ash content of the run of mine coal and results in lower efficiency at the power station and financial penalties for SLE. In this paper, therefore, selection of the best possible equipment and production method was identified to achieve high selective mining at SLE. The research found that two different high selective mining methods were suitable for selective excavation of the B3 seam, which were hydraulic excavator and truck and surface miner and truck combinations. It was also found that high selective excavation could provide the desired coal quality at 52% lower costs when the whole process (excavation, transportation, processing, etc.) was considered. Keywords: coal mining, surface mining, selective mining.

Jan 1, 2007