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By D J. Alchin

Most of South AfricaÆs high-grade iron ore resources are hosted within a fault-controlled structural basin in rocks of the Palaeoproterozoic Transvaal Supergroup in the Northern Cape Province of South Africa. Iron mineralisation occurs as individual orebodies in fault-bounded basins or as fold-controlled concordant lenses around an unconformity plane above the Kuruman Banded Iron Formation. The Sishen mine near Kathu and the beeshoek mine and Sishen South deposit near Postmasburg lie on the northern and southern border of a major domal structure known as the Maremane dome, respectively. The effects and structural constraints of at least three orogenic compressive episodes and several intermittent extensional episodes on the formation, erosion and preservation of iron mineralisation on the Maremane dome and surrounding environs were investigated. Ventersdorp impactogenal rift basin development at ~2.78 - 2.64 Ga, finalised with the deposition of the volcano-sedimentary Vryburg Formation during the thermal subsidence stage at ~2.64 - 2.6 Ga, and was followed by tectonic quiescence/stability and an extensive marine transgression across the entire Kaapvaal craton. The drowning event led to the formation of a carbonate platform with the deposition of the Schmidtsdrif and Campbellrand subgroups conformably above the Vryburg Formation at ~2.6 - 2.52 Ga. The initiation of distal (to the west of the Kaapvaal craton) off-craton oceanic rifting, causing submarine volcanism and associated hydrothermal activity, led to the deposition of initially manganiferous chert (Wolhaarkop Formation) followed by banded ironstone formations (Manganore Iron/Kuruman Formation) of the Asbestos Hill Subgroup at ~2.52 - 2.46 Ga. Initial passive margin rifting along the N-S oriented western edge of the Kaapvaal craton, initiated at the end of Ghaap Group time (during Koegas Subgroup deposition) at ~2.46 - 2.35 Ga, formed a prominent system of N-S striking, westerly dipping normal faults. Easterly directed crustal compression in post-Ghaap Group time in response to the Kalahari Orogeny (accretion of Rehoboth craton along western edge (Kalahari suture zone) of the Kaapvaal craton at ~2.35 - 2.24 Ma led to the formation of large-scale regional, N-trending F1-folds. Partial to complete inversion of the Koegas passive margin rift system (ie reverse dip-slip reactivation of the N-S striking normal fault system to high-angle reverse faults and dextral strike-slip reactivation of the Ventersdorp rift system developed in the Archaean basement), was followed by uplift, erosion and formation of a regional angular unconformity (Postmasburg unconformity). Uplift was accompanied by deposition of fluvio-glacial sediments of the Makganyene Formation (Lower Postmasburg Group) within an intracratonic peripheral foreland basin setting unconformable above Ghaap Group strata at ~2.35 - 2.24 Ga. Post-orogenic crustal relaxation and rifting caused extensional reactivation of the N-trending Palaeoproterozoic passive margin rift system and NE-trending Neoarchaean Ventersdorp impactogenal rift system, forming a fault-controlled depository for the volcano-sedimentary Upper Postmasburg Group at ~2.24 - 2.1 Ga. Deceleration in rifting was succeeded by thermal subsidence of the Upper Postmasburg Group rift, erosion, formation of a regional angular unconformity and deposition of clastic sediments of the Lower Olifantshoek Supergroup unconformable above Postmasburg Group strata at ~2.1 - 1.93 Ga. Renewed rifting led to the deposition of volcano-sedimentary units of the Upper Olifantshoek Supergroup within a rift system superimposed on the Postmasburg Group rift depository at ~1.93 - 1.83 Ga. Easterly directed crustal compression during the Kheis Orogeny at ~1.83 - 1.73 Ga led to renewed inversion of rift structures of the Postmasburg Group and Olifantshoek Supergroup depository, N-trending F2 folding and thin-skinned thrusting of older rock units eastwards over the cratonic cover, thereby utilising planes of weakness in the strata such as prominent unconformities and lithological contrast boundaries as principal dTcollements. NNW-directed crustal compression in response to Lomanian (Namaqua-Natal) Orogeny at ~1.15 - 1.0 G along the southern margin of the Kaapvaal craton, resulted in minor sinistral strike-slip reactivation of the N-S striking fault system, the formation of extensional NNW-SSE striking fracture/fault zones and the development of ENE-trending F3 folds forming a F2/F3 fold interference pattern. Post-Lomanian tectonic events (eg the Pan-African Orogeny at ~650 - 500 Ma, the Cape Orogeny at ~310 - 240 Ma, and the Gondwana breakup at 205 - 120 Ma), caused only comparatively minor extensional reactivation of the pre-existing fault systems. Iron mineralisation was ultimately preserved from erosion by Kheis Orogeny-related N-trending F2 synclines and Lomanian Orogeny-related ENE-trending F3 synclines, in particular areas of interference between F2 and F3 synclines representing comparatively deep semi-circular trough- like depressions, as well as in half grabens formed adjacent to reactivated westerly dipping N-S normal faults. Support for relating the iron and manganese mineralisation to structurally controlled hydrothermal fluid flow during the Kheis orogenic event has also been found, and ongoing research is aimed at confirming and refining the hydrothermal model for iron ore mineralisation in the Northern Cape.

Jan 1, 2007

By J. Hunter, E. Jackson

This paper describes work done by Placer Dome Technical Services Limited, a subsidiary of Barrick Gold, and Nautilus Minerals Inc. in support of the conceptual design of a subsea mining system. It describes an overall concept design plus specific studies into mechanical excavation at depth. The concept design includes one or more subsea excavators connected to a suction riser, which transports the cut material to a shipboard dewatering and offloading system. A multi-phase investigation was performed into the mechanical excavation of seafloor massive sulphides at depths of around 1600m. Rock samples were recovered and tested for rock properties and cutting behaviour. A small pick drum cutter was procured and tested on a representative concrete slab in a lab and tested again while submerged in a test tank. Finally the cutter was tested on a massive sulphide ore body at 1600m depth. The cutting performance results, e.g. pick forces and specific energies, should provide valuable input to the design of future full scale subsea mining systems.

Jan 1, 2007

By R. du Preez

Tati Nickel is currently operating a hydrometallurgical demonstration plant in Botswana, using the Activox® process developed by LionOre Technology to produce nickel cathode and a cobalt salt from a sulphide concentrate. Cobalt is extracted using Cyanex 272. This reagent also extracts all the iron, aluminium, copper, zinc, and manganese from the nickel stream. Versatic 10 carboxylic acid is then used as extractant to recover nickel from the stream, separating it from calcium and magnesium, and upgrading it to provide a suitable advance electrolyte for nickel electrowinning. However, the selectivity of Versatic 10 for nickel over calcium is limited, and gypsum formation in the extraction circuit is a problem when attempts are made to maximize the recovery of nickel. Mintek has developed a synergistic system with Versatic 10 for improved separation of nickel from calcium and magnesium. Laboratory testwork was conducted on the raffinate of the cobalt solvent extraction circuit to optimize the Versatic 10/Nicksyn? (Mintek synergist) system to be employed. Extraction and stripping parameters suitable for this stream were optimized in the laboratory and then applied on the demonstration plant. A commercial batch (0.5 tons) of Nicksyn? reagent was produced for the demonstration plant. The laboratory testwork results and the demonstration plant performance are discussed in detail in this paper.

Jan 1, 2007

By N. Sasto, E. Bondi, G. R. Lane

Cyest Corporation has been involved in economic modelling and optimisation with various mining clients within South Africa, and internationally, for the past 5 years. In the mining industry in particular, the relationships between variables that are controllable, and those that are not, and the physical and economic outcomes are complex and often non-linear. These relationships constitute an economic system. In the mining context, although many of the relationships can be accurately quantified on a ?single variable to single variable? basis, such simplistic relationships will not suffice in order to understand the dynamics of an entire mine. One has to specify and quantify the relationships between hundreds, if not thousands, of variables. Furthermore, in reality, these relationships change over time. This is the role of an economic model where all the relevant cause-effect relationships, within pertinent constraints, are accurately represented. Models that are used for optimisation must therefore capture the dynamics of the economic system in question as well as anticipate changes to the relationships between these variables. An accurate economic model is a prerequisite for successful optimisation. Optimisation entails the allocation or configuration of resources, within control of management, which will maximise (or minimise) a desired objective function. An optimal configuration (implying trade-off) of controllable variables therefore exists for a given set of assumptions that will yield a maximised objective function. Due to the multi-variant trade-offs required for optimisation, the concept of the ?Economic Surface? or ?Hill of Value? has been used to represent these optimisation outcomes and to discern the route to an optimal configuration. A good example of this is the volume versus cut-off grade trade-off that yields an optimal value for a particular shaft with its unique geological and economic assumptions. More recently, Cyest has extended these economic models to incorporate risk associated with variance in assumptions and inputs. This is termed DFA (dynamic financial analysis) and incorporates stochastic modelling and some of the latest actuarial techniques around modelling global assumptions (such as pricing and exchange rate). This paper will cover the theory around mine optimisation through some example case studies, and also explain the latest thinking regarding incorporating DFA.

Jan 1, 2007

By L. Voisin, K. Itagaki

In the reductive smelting of the copper concentrate like a blast furnace operation using coke as fuel and reductant or in processing the copper concentrate which contains coal in the bulk, a sulfur-deficient matte phase often coexists with an iron base alloy in the bottom of the smelting furnace. This alloy is generally called furnace residue or speiss when considerable amount of arsenic or antimony is contained in the alloy and in the extreme case of reducing condition the alloy is saturated with carbon. As a fundamental study to know the behavior of some precious metals such as silver, gold and platinum between the sulfur-deficient matte and the furnace residue or the speiss which are in equilibrium under reducing condition, the phase relations and distribution of precious elements in the Cu-Fe-S-As and Cu-Fe-S-Sb systems saturated with carbon were determined at 1473 K by a quenching method.

Jan 1, 2007

By S. T. Johansen, C. Colomb, B. Ravary

Combustion and thermal NOx formation have been modelled using the Computational Fluid Dynamics (CFD) commercial code Fluent 6.1. The aim was to predict and give a better understanding of the combustion in electric arc furnaces for the production of ferro-silicon and silicon metal. Another important objective was to assess the impact of a number of operating parameters on the NOx formation. The CFD tools used are de-scribed with a special focus on models for species and turbulence transport. Sensitivity studies have been carried out to study the influence of several parameters: sub-models, process gas composition and distribution at the charge surface and influence of the presence of SiO. The main conclusions are: ?Using the combination of a realistic design, boundary conditions and models, the simulated NOx level is in quantitative agreement with measurements. The presence of water vapor is particularly important because of its influence on the specific heat of the mixture and resulting temperature. ?Release of significant amounts of SiO from the charge surface results in an important increase of NOx, even if we applied a simplified combustion model for SiO gas. However, because of lack of thermal and compositional data for blowing situations (when SiO flows directly from the arc cavity through open channels to the charge surface), no quantitative validation is possible. The way SiO is distributed (uniformly or as a jet) has a limited impact on the result in our computations.

Jan 1, 2007

By P. Reyes

The start up and operational optimization of the No. 3 Oxygen Plant at the Caletones Copper Smelter of the Codelco - Chile El Teniente Division is summarized. In addition, the economic impact of such optimization on the production cost of oxygen and others aspects associated to the operational robustness as well is detailed.

Jan 1, 2007

By Bob Turnbull

The International Society of Explosives Engineers (ISEE), at its 1995 annual conference, established a Seismograph Standards Working Group to develop performance standards for blast vibration seismographs. This group was transformed into the Blast Vibration and Seismograph Section in 1997 with 5 working committees one of which was the Seismograph Standards Committee. Standards are essential to ensure that vibration records from different seismographs would report the same vibration levels within a stated tolerance. In 2000, the ISEE through the work of the Blast Vibration and Seismograph Section published the “Performance Specifications for Blasting Seismographs.” This document is available on the ISEE web site at www.isee.org/sections/blast.htm.

Jan 1, 2007

By Haiping Sun, Samir Ganguly, Oleg Ostrovski, M. Yaser Lone

Wettability of graphite by synthetic SiO2-Al2O3-CaO-MnO slags with varied MnO content and by industrial slags was studied at 1350-1600 °C using sessile drop method under argon atmosphere. Initial contact angle was the lowest (110-115o) for the MnO-free slag. For slags with 10-40 wt% MnO, the initial contact angle was in the range 125-135o. The contact angle decreased with the contact time. The change in the contact angle with slag mass was found insignificant. The surface tension of slags obtained from the drop shape analyses was 500-800 mN/m and varied in a narrow range with temperature and MnO concentration. The reduction rate increased with increasing MnO content in the synthetic slag from 20 wt% to 40wt% and temperature. Increasing temperature also increased the rate of reduction. No correlation was observed between the reduction rate and MnO content in the synthetic slags in the range 0-20 wt% and in the industrial slags. The rate of SiO2 reduction from the molten slag was close to the rate of MnO reduction. The MnO-free slag had the largest contact area with graphite substrate. Keywords: reduction, wettability, graphite, slag, manganese, surface tension.

Jan 1, 2007

By C. Klutke

This paper outlines a simple methodology for mineral characterization, developed as part of the Australian Mineral Industry Research Association (AMIRA) managed research project P777 ?The Development of Heavy Suspension Techniques for High Density Separations (Replacement of Clerici?s Solution)?. The project was sponsored by De Beers, Rio Tinto and Iluka Resources. Heavy mineral characterization of samples arising from exploration, mining or metallurgical processes is frequently conducted using laboratory heavy liquid analysis. Unfortunately, there are only a limited number of high density (?heavy?) liquids and these tend to be more toxic as their density increases. Low-toxicity inorganic solutions, based on tungsten compounds, have been developed that can be utilized at relative densities (RD) up to 3.0. Beyond this value organic liquids can be used; however, this presents significant health and safety hazards. Diiodomethane (methylene iodide) having a relative density of 3.31 is commonly used. Mixtures of thallium formate and thallium malonate were found in the early 1900s by Clerici to provide liquids having specific gravities between 4.0 and 5.0. For the characterization of the heavy components of mineral sand deposits (e.g. anatase RD 3.9, rutile RD 4.2, ilmenite RD 4.4?4.7 and zircon RD4.6?4.8) there is currently no heavy liquid alternative to Clerici?s solution. Clerici?s solution is highly toxic and testing is now conducted by few laboratories worldwide, with costs reflecting the chemical costs, infrastructure costs and health and safety regimes (e.g. blood testing of exposed staff). A simple laboratory technique of density fractionation has been developed, employing suspensions of fine tungsten carbide particles in lithium heteropolytungstates solutions, that can replace Clerici?s solution in the evaluation of fine mineral sands samples (e.g. -250 +150microns). The developing methodology that can achieve low-cost, low-toxic separations at relative densities above 4.0 is outlined and the comparison of results with Clerici?s solution presented. In addition, preliminary work on density fractionation of zircon samples is presented. Zircon fractionation relates to their inclusion, radionuclide content and metamictization.

Jan 1, 2007

By E. A. Morris

It has been shown that Alberta oil-sands fluid coke can be effectively used to reduce SO2 to elemental sulphur while simultaneously producing sulphur-impregnated activated carbon (SlAC). In the capture of mercury from industrial flue gases, SIAC has proven to be a highly effective adsorbent material. The current research aims at developing an existing SlAC technology to meet the needs of copper smelters for mitigating both mercury and SO2 emissions, while making elemental sulphur as a co-product. The challenge behind this undertaking is that these flue gases generally contain percent levels of 02 and H20 vapour (2-12%). The focus of this study is therefore on the feasibility of reducing SO2 using fluid coke under copper smelter flue gas conditions, as well as the optimisation of SIAC properties for capturing vapour phase mercury. It is hypothesised that mercury capacity is strongly affected by the 02 potential of the activation gas due to changes in surface sulphur types arising from different reduced sulphur species. To verify this, gas chromatography is used to analyse the reaction products while XPS and XANES will be used to describe the nature of sulphur on the SlAC surface. CVAFS analysis of mercury capacity will finalise the hypothesis assessment. Preliminary results indicate that 02 at 5% does not play a significant role in SSA or pore development. As expected, increased residence time contributes to SO2 reduction and elemental S yield.

Jan 1, 2007

By E. Nurminen

Thermal transport properties of copper flash smelting flue dust have been investigated. Such values of the dust are needed to correctly model the process and to optimize its heat recovery performance. Dust accretions on heat recovery boiler walls may have a significant influence on the boilers heat transfer efficiency. Measurements of the thermal transport properties have been made for industrial flue dust and for pure sulphate components. The measurements have been conducted at temperatures up to 400 °C and the effect of porosity on these properties has also been investigated. The results indicate that the flue dust and the sulphate components are effective thermal insulators and the dust build-up on the boiler walls is likely to greatly decrease the heat transfer efficiency of the boiler.

Jan 1, 2007

By M Rimes

This paper describes a technique to predict achievable head grades and likely variances from target grade for the Shovelanna Iron Ore Project, in the Pilbara region of Western Australia. The block model from which the production schedule is produced was created from a wide spaced drilling program and was classified as an Inferred Resource under the JORC Code. Ideally, production schedules and target grades would be determined using a combination of Proved and Probable reserves. However sometimes it is necessary to consider the requirements of potential off-take parties who have specific grade tolerances. A technique is needed to simulate mining sequences and grade variations early in the planning process, using an æexplorationÆ block model rather than the normal æminingÆ block model. Marketing contracts require examination whether the target grade {Fe, P, SiO2, Al2O3 can be kept constant, or must be revised during the life of the mine. A model (written in ExcelÖ using Visual Basic macros) develops a feasible, close to optimal, mine plan from block model data. Cut-off grades for minable ore are chosen. The model evaluates ore tonnage, grade and stripping ratio against depth. Outputs at this stage include plots of slices through the orebody, at nominated x, y and z coordinates, showing ore grade, waste, drill hole locations and topography. The model then searches for a feasible satisfactory mine plan. The initial grade target is the average for the identified ore blocks. The available block list (ABL) at any time is the set of ore blocks, any one of which can be mined without removing any other ore block. The entire initial ABL has an unacceptably large ætotal grade stressÆ, defined as [(Grade-Target)/Tolerance]2, summed over the four relevant minerals {Fe, P, SiO2, Al2O3}. The model trims the ABL, removing the block most harming the total stress. Trimming is repeated until the total grade stress reduces to an acceptable level. The trimmed ABL defines the first mine campaign. Removing the trimmed block set, a second ABL is exposed, which is again trimmed and mined. The process is automatic: a few seconds computation provides a complete mine plan. Re-running the model with adjusted grade limits quickly shows whether a uniform target can be achieved or whether the target must be modified during the mine life.

Jan 1, 2007

By N. J. Alderman, R. Haldenwang

Flumes are ubiquitous throughout the mining and minerals processing industries as well as being used in the polymer processing and pulp and paper industries. With the increased demand for the transport of highly concentrated slurries in rectangular open channels, there is an impetus for a better understanding of the role of rheology in flow hydraulics. Until recently, design of such channels has been based on either the Chézy or Manning equations used for modelling open channel flow of Newtonian fluids. This has been done for modelling turbulent flow of low concentrated slurries with some success. However, this is not the case for highly concentrated slurries where the flow in the channel is no longer turbulent. Unlike Newtonian fluids, work carried out on flow of pseudo-homogeneous, non-Newtonian fluids in open channels is somewhat limited. Moreover, these results have been published in a variety of sources. This paper attempts to give a critical review of the work carried out on Newtonian and non-Newtonian flow of pseudo-homogeneous non-settling slurries in rectangular open channels. A comparison is also made of the models based on power law, Bingham plastic and Herschel-Bulkley fluids for laminar and turbulent flow in rectangular open channels.

Jan 1, 2007

By P. H. Reynolds, S. Liaghat, A. Zarasvandi

"Darreh-Zerreshk and Ali-Abad are two relatively small porphyry copper-type deposits in Yazd Province in central Iran. They are located within the central Iranian volcano-plutonic belt, formed above the collisional convergent margin of the Iranian lithospheric plate from the late Eocene to the Miocene. This paper discusses the geochemical characteristics of the igneous rocks, and 40Ar/39Ar geochronology of plutons and alteration phases associated with the Darreh-Zerreshk and Ali-Abad deposits. The deposits are spatially associated with igneous complexes that consist of older and barren granites intruded by intermediate-composition granitoids, which are the carriers of Cu mineralization. The granites have relatively high content of Nb, Y, and K, a prominent negative Eu anomaly, and were probably derived from melting of, or contamination of mantle-derived magmas by, continental crust. Porphyritic diorites, quartz monzodiorites, and granodiorites show enrichment in light rare earth and large-ion lithophile elements, depletion in middle rare earth elements, and have no negative Eu anomaly. These intermediate-composition granitoids were derived from melting of the upper mantle or lower crust, and their differentiation was controlled partly by fractionation of hornblende. A pilot K/Ar whole-rock dating study suggests that the pre-ore granites were emplaced in the Oligocene. Dating by the 40Ar/39Ar method of nine samples of secondary biotite and sericitized rocks from drillcore within the mineralized and altered zones in both deposits yielded a well-defined age of ca. 16 Ma. This date is interpreted to be the time of hydrothermal alteration and of porphyry copper type mineralization in this part of Iran."

Jan 1, 2007

The modelling of lithological domains is a critical step in mineral resource and reserve evaluation. Deterministic models rely on an interpretation of the available drill hole data and expert knowledge, but do not account for the uncertainty in the spatial extent of the lithological domains. Instead, probabilistic models based on conditional simulation can be used to map the probabilities of occurrence of the domains within the deposit, which reflect the uncertainty in their presence or absence at unsampled locations. The mineral grade model is then obtained by weighting the predicted grades associated with each lithological domain by the probability of occurrence of this domain. Such an approach accounts for the continuity of the grades proper to each lithological domain and for the uncertainty in the spatial extent of these domains within the deposit. An application to a porphyry copper deposit is presented. Keywords: spatial uncertainty; plurigaussian simulation; geological control; kriging; geostatistics.

Jan 1, 2007

By N Robson, E Stephens

Australian mining companies are actively exploring for and developing mineral deposits throughout the world with interests in emerging markets such as Africa, Asia and South America. It is important to understand emerging market risk as this will affect the willingness of mining companies and financial institutions to invest in a country, especially with reference to their key asset, the mining licence or operating/concession agreement. Mining companies looking to develop new projects in emerging markets have different risk profiles than projects in countries such as Australia and Canada. Examples of key risks faced in emerging markets include: political û expropriation, nationalisation, contract frustration, currency inconvertibility, war, terrorism, strikes, riots and civil commotion; and legal û mining legislation, arbitration and dispute resolution, trade agreements. There is a problem in the difference in risk perceptions between mining companies, financial institutions and insurers. This can cause different stakeholders to carry out different evaluations of the risks faced by a project, resulting in confusion about the risk margin attached to any project. In a time where resource nationalisation and energy security are prompting governments to become more involved in the mining sector we run through some recent examples of mining companies that have had problems due to the key risks highlighted earlier. Importance of carrying out the right due diligence to replace perceptions with reality: early identification of risks û detailed due diligence on emerging market risks that may arise will help with their identification and mitigation, make use of companies that can help identify risks and suggest solutions, control the cost of financing û risk margin applied to a project finance loan will be influenced by the risks faced, and risk management and using political risk insurance. There are plenty of opportunities in emerging markets but it is important to recognise the associated risks. Detailed due diligence at an early stage will provide long-term benefits.

Jan 1, 2007

By A. M. Ghodgaonkar, P. J. Bhonde, R. D. Angal

Primarily ferrochrome is used to introduce chromium into steels and alloys. Chromium enhances hardness, hardenability, corrosion, abrasion and wear resistance of the steel. High carbon ferrochrome is one the cheapest sources of chromium, which finds large consumption in foundries and steel plants. However, carbon leads to problems viz. weld decay and sensitization of steels at elevated temperature causing catastrophic failure. Thus high carbon ferrochrome which otherwise enjoys financial edge over its low carbon grade is not suitable for final alloying or adjustment of chromium content. Subsequently, its addition burdens a steel maker. Hence, metallurgists around the globe have researched on finding out suitable technique for refining of ferrochrome. Traditional production methods of low carbon ferrochrome have drawbacks i.e. high refractory consumption, losses of chromium in slag and fumes etc-. Later these were overcome by adopting relatively new methods namely, metallothermic reduction, triplex process, vacuum technique to directly produce extra low carbon ferrochrome. Authors have carried SWOT analysis of the aforementioned techniques in the literature. Key Words: Ferrochrome, carbon content, low carbon grade, chromite, sensitization

Jan 1, 2007

By R. G. B. Pickering

Over the last few years Lonmin Platinum and Sandvik have embarked on a unique partnership of collaboration through a systematic approach to developing equipment to mechanize and automate narrow reef platinum mining. After the initial design and manufacture of the equipment the key aspect is the integrating equipment, people and method into a mining system. Another key aspect of mechanization is the optimization of equipment utilization, and this philosophy has ensured continual evolvement of mining methods. This paper describes the trials and development that have resulted in the mining method described as Lonmin mechanized breast.

Jan 1, 2007

The latest Draft MPRRB was released for public comment in October 2006. The main purpose of the Bill is to collect royalties at mines developed in terms of new-order mineral rights granted through the MPRDA process. The transition phase stipulated in the MPRDA will be completed by 1 May 2009, on which date mineral royalties will become payable to the state. The royalty rates stated in the MPRRB differ from mineral to mineral and also depend on the degree of refinement. Gold is the subject of this paper, where the royalty rate ranges from 1.5% (for refined gold) to 3% (for unrefined gold) of sales revenue. This royalty is payable regardless of profit, with a maximum 75% relief for loss-making mines. The purpose of this paper is to establish whether or not it would be necessary for gold mines to adjust their mineral reserve statements as a result of this Bill. The methodology is to add the royalty costs stipulated in the MPRRB to the actual quarterly information for the past ten years as reported by the gold-mine members of the COM. The rationale is to investigate the impact this Bill (in its current form) would have had on gold reserves that must be left unmined in the ground because of a higher pay limit. The results of the study point to a significant impact on reserves available for mining with the subsequent shortening of mine lives and retrenchment of workers. Had the MPRRB been effective for the 10 years prior to 1996, it would have resulted in 46 tonnes of gold being sterilised. Stated alternatively, 30 700 workers at COM gold mines alone would have lost their livelihoods.

Jan 1, 2007