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By R. Tinsley

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each project's feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

By P. G. Van Der Walt

This paper deals with the reticulation of deslimed tailings from surface to the stope face underground. Reference is made to the experience gained at the pilot plants operating on four of the gold mines administered by Gold Fields of South Africa, as well as at the full-scale system at East Driefontein which was commissioned recently. Mine-wide backfill systems are currently being installed on five other mines administered by Gold Fields. These six full-scale systems are capable of handling more than 270 000 tons of backfill solids per month. The type of reticulation system chosen, the selection of flowrates and the composition of the slurry, as well as the selection of the appropriate pipes and ancillary equipment are discussed. Both theoretical and practical aspects are taken into consideration. Other aspects covered include the design of underground storage dams and communication systems.

Jan 1, 1988

By H. W. Read

The South African platinum industry finds itself in the midst of a rapidly evolving society that is no longer characterized by the apparent stability of the previous decades. The features of this society include increasing global competition, rapid technological innovation, a declining skills pool, major political transformation, a more challenging working environment as the mines reach deeper into the earth?s crust and a greater concern for human welfare. It is therefore axiomatic that new ways will have to be found to engage the all-pervasive change in the mining environment. Although in general terms project management is a universal endeavour for managing change, it takes place in a specific socio-techno-economic environment and geographical setting that gives it a particular context. The argument of this paper explores, analyses and synthesizes the impact of these changes on the emerging project management methodology. In essence, the management of change will inevitably contribute to the emergence of new dilemmas, issues and challenges. The change management process and procedures will also be affected by this change and in response, drive internal change of its own structures and organization. And, therefore, a new paradigm of project management will become apparent. A new project management model will then be proposed to the industry.

Jan 1, 2006

By A. Kijko, C. W. Funk

Methods for the analysis of seismic hazards in mines are reviewed as illustrations of the techniques that are being used in some South African mines. The classical parameters that describe a hazard are the seismic activity rate, ?, the Gutenberg-Richter value, b, and, occasionally, the maximum regional magnitude, mmax The activity rate is calculated readily owing to the inherent simplicity of its definition. The evaluation method presented for the Gutenberg-Richter b value takes into account the presence of mmax Three statistical procedures are described for the assessment of mmax which the maximum observed magnitude, Xmax a crucial role. Often, the configuration of mine seismic networks is changed, or the networks are improved, which inevitably gives rise to changes in the completeness of the seismic catalogues. The routine analysis of seismic hazards must account for these time dependent changes. A method for the evaluation of hazards is reviewed that accommodates varying levels of quality in the catalogues. Finally, the concept of the volume of ground motion (VGM) is presented. This is a technique that allows for most aspects of seismic hazards in mines. The advantage of the VGM is that a hazard can be described by one physically significant value: the volume of rock (cumulated over a time period) in which the ground motion exceeds some critical particle velocity. Data from the gold mining region in South Africa known as the Far West Rand is used in a demonstration of the discussed methods of hazard analysis.

Jan 1, 1994

By D. F. Sinclair

It is often said in business that if you don't have a customer you don't have a business. The same rule applies to project evaluation; if you don't have customers you really don't have a viable project. It is therefore essential that in the early stages of project evaluation the following fundamental questions are addressed: ? What products will this project produce? ? Who are the potential customers? ? What are the customers' requirements with respect to grade and impurities? ? Do they have adequate capacity to take the production from the proposed project? ? Will the products introduce adverse effects in the customer's process circuits? ? Will additional waste streams requiring disposal be produced? In the past the attitude has been along the lines of the customer will take whatever we produce at the mine site. Times have now changed with customers now operating under much tighter environmental regulation with waste disposal becoming increasingly difficult. It would therefore be prudent that the principles of product stewardship be used as a tool in project evaluation. This paper will provide a general discussion on customer requirements and provide detail on case studies of the impact of mine products on smelter process circuits. It will provide examples where there were synergies between the mine product and the smelter circuit and where the mine product had adverse impacts on smelter performance.

Jan 1, 2007

By D. R. Hardman

South Africa is the third-largest supplier of coal on the world's export markets after Australia and the USA, and the second-largest supplier of bituminous steam coal following Australia. There are many Similarities between the coal industries of South Africa and those of Australia and the USA, in contrast to the coal industries in Europe. For South Africa to maintain a competitive position on the export markets, it must continue to compete against these two countries. It is therefore important that the performance of the loca1 coal industry should against that of the Australian and US coal industries. Although financial performance is the major criterion, financial information is not easily obtained, and the paper therefore uses employee productivity in the form of tonnes per man year as a means of comparison. The paper reviews recent trends in the level of production and numbers of employees prior to review1ng the productivity. The influence on productivity of some mining methods is highlighted. It is realized that published information (information available within the public domain) can contain anomalies, but every effort is made to compare data of a similar type. Notwithstanding possible inaccuracies, it is shown that South African coal-De productivity lags far behind that of Australia and the USA. The significance of the difference is that the South African coal industry is able to apply overseas practices and procedures that have been shown to give improved performance, and that the increased use of more productive extraction techniques has limited application.

Jan 1, 1996

It is desirable to have a model, or method, for major project development, which will enable flexible modelling of separation circuits. This ability improves the understanding of circuits and how they should be operated, especially in a design phase, where various options are evaluated and decisions are made on the required number of stages and configuration. This paper describes existing gravity separation circuit modelling theory and concepts, as defined by Holland-Batt1 (separation window, separation efficiency and proportionality of efficiency). The crux of the paperis the application of numerical analysis to fit raw separation data by means of a modified Bézier-Spline. The paper proposes an alternative to the theory developed by Holland-Batt that provides more flexibility in the modelling of separation stages and curves, which include S-shaped curves. The paper proposes a solution to the challenge of continuously extrapolating data, and the first difficulty normally encountered, which is the fitting of an appropriate empirical formula to raw data.

Jan 1, 2007

Newmont is one of the few remaining large mining companies that was established in the early nineteen hundreds. The company has a long, colourful and enviable history. This paper provides highlights of Newmont?s business and technical history since its inception in 1916, its transition to a ?gold only? company in the early 1990s and progress since that time up until the present day. Details of Newmonts current gold operations and its gold production profile for 2008 are also provided in the paper Over the last 50 years Newmont has developed a host of innovative gold technologies to meet the challenges of treating the complex refractory gold ores, found at the company owned mines in the Carlin region and around the world. Details of the technologies are provided and they include chlorination, roasting, bacterial and pressure leaching, leaching gold with thiosulphate and thiocyanate, N2Tech flotation, HPGR treatment of hard and abrasive ores and, finally, the use of Hydro-Jex technology for improving gold recovery from heaps.

Jan 1, 2009

By I. E. Teymenson, N Fedunets

Mining-metallurgical complex is the base of any economics and influences directly on practically all branches of world economics. Therefore the task of estimation and selection of investment decisions in mining industry adequate to modern market conditions and the task of decreasing multidimensional alternatives selection uncertainty are very actual. An uncertainty of investment alternatives is explained by a number of reasons, main of which are a presence of several investors types, an unstable situation on the market and an absence of evident relations between appraisal criteria used. Maximum increasing of formalization and objectivity of information technologies applied for an estimation permits to reduce the uncertainty of investment variants estimation. A number of principled innovations, allowing to solve the task of decreasing of multidimensional alternatives selection uncertainty, are introduced into the information technology of estimating and selecting investment decisions in mining-metallurgical branch, developed by us. In the article the necessity of including a cognitive model into developed selection mechanism, which allows to take into consideration inter-influences of used critera, has been grounded. Besides, the forecasting model considering interconnected time rows has been applied for increasing the world conjuncture forecast quality. Further in the article main metrics types have been characterized and application of weighted Chebyshev’s metrics as the most compromised from all studied metrics for variants selecting has been proved, and also the developed procedure of directional search of effective compromise decisions has been described. Brief characteristic of designed instrumental means of multi-criteria variants estimation and selection finalizes the article. In conclusion expedience and efficiency of using the developed information technology for reduction of multidimensional alternatives selection uncertainty have been grounded.

Jan 1, 2003

By S. Duma

The main sulphide zone (MSZ) of the Great Dyke is cryptic and without obvious stratigraphic markers. Although there are trends in the dimensions of the PGE and base metal profiles across the Hartley Complex, the profiles are invariant within a particular mining area. Ratios derived from these profiles are used to interpret diamond drill cores drilled ahead of underground development. Detailed logging of oriented core shows the exact position and attitude of intersected faults. Metal ratios are used to estimate fault throw to within 25 cm. It is possible to draw detailed sections showing the extent of ground disturbance well ahead of mining. The method has been confirmed by mining and by drilling inclined holes through the fault blocks. Keywords: main sulphide zone, Hartley Complex, Great Dyke, Zimbabwe, platinum, Palladium, Nickel.

Jan 1, 2004

By J. O. Claassen

A study was initiated and solutions implemented to address the root causes of a 30%?40% lower than predicted product yield achieved at a Mpumalanga coal mine. A holistic MRTM approach, which focused on improving exploration, geological sampling and analysis, geological modelling, planning, mining, and beneficiation practices, was used. The study indicated that deviations in the planned versus actual yields at the DMS plant were caused mainly by incorrect geological yield predictions, high and variable levels of dilution, and near-dense material, as well as the textural properties of the ore. Keywords MRTM, mining value chain improvement, Witbank coalfields, complex geology.

Oct 1, 2013

By Lene Hansen

Sulphuric acid plants now and then see unexpected increases in SO2 emissions. Our experience is that it is not always easy for the acid plants to pin point the exact reason for the SO2 increase. Sometimes a catalyst bed is sacrificed even though reliable emperature readings and gas analyses could have verified satisfactory activity, hence the leaking heat exchanger is never discovered and after the shutdown the SO2 emissions are still too high. This paper will look into some basic catalyst management tools: Good record keeping is a necessity for collection of representative catalyst samples, reliable operating data is an inevitable starting point for all analysis and trending of operating data is a must for plant optimisation and troubleshooting. In addition these catalyst management tools will give a continuous updated knowledge of the catalyst status in each bed providing the basis for a more effective replacement strategy. The most typical reasons for increasing SO2 emissions will be presented together with easy guidelines for cross-checking of operating data, temperature optimisation and good record keeping.

Jan 1, 2009

The optimal design of production phases and ultimate pit limit for an open pit mining operation may be generated using conventional or stochastic approaches. Unlike the conventional approach, the stochastic framework accounts for expected variability and uncertainty in metal content by considering a set of equally probable realizations (models) of the orebody. This paper evaluates the performance of a new stochastic network flow approach for the development of optimal phase design and ultimate pit limit using a gold deposit as the case study. The stochastic and conventional frameworks as considered here utilize the maximum flow and Lerchs-Grossman (LG) algorithms, respectively. The LG algorithm is restricted to considering an estimated (average-type) orebody model, while the stochastic maximum flow algorithm is developed to simultaneously use a set of simulated orebody realizations as an input. The case study demonstrates that, when compared to the conventional LG algorithm as used in the industry, the stochastic approach generates a 30 per cent increase in discounted cash flow, a 21 per cent larger ultimate pit limit, and about 7 per cent more metal, while it maintains a consistency in phase size.

Jan 1, 2012

By P. Beukes, D. Bessinger, R. Glenewinkel

High titania slag is produced by the smelting of ilmenite and a suitable carbonaceous reductant in electric furnaces. Currently liquid slag is cast into large blocks, which take about 10 days to cool down before they can be crushed, milled and classified into two final products. The two products, chloride and sulphate grade slag, are differentiated according to their size. Granulation of titania slag has been identified as a possible alternative to the conventional block route. This paper discusses some of the work carried out at Exxaro Research and Development to investigate both wet and dry granulation of titania slag.

Jan 1, 2007

Iron ore pellets with or without additives are commonly used as alternate charge material in both conventional and newer ironmaking processes. The performance characteristics of these pellets are normally assessed on the basis of their reducibility values, reduction strength and resistance to clustering. These properties depend mainly on the type and amount of additives and on the sintering phenomena of the pellets during firing. In the case of composite pellets (ore-coal pellets), reduction and sintering of the iron ore fines occur simultaneously. The thermodynamic and reaction mechanisms of the processes involved in the reduction of iron ore pellets with and without reductants, additives, etc., may not necessarily be identical. The reduction and sintering characteristics of pellets greatly influence the reaction mechanism and the surface morphology of the reduced pellets. The approaches in the literature to the analysis of these reduction and sintering phenomena are broadly categorized as follows: (i) empirical models, (ii) models based on kinetics, and (ill) models based on morphological changes. The relative merits and de-merits of these models are illustrated by their application to the reduction of fluxed ore-coal composite pellets. A critical analysis of the investigations that have been conducted on the reduction and sintering behaviour of such pellets is given. It is shown that, although elegant empirical models and kinetic equations have theoretical significance and can be usefully employed in elucidating the reaction mechanisms of iron ore lumps, they are sometimes not directly applicable to fluxed ore-coal composite pellets. In studies of the latter, the approach should be to correlate the morphological changes with the reduction mechanism. The paper also gives a brief account of an investigation on the reduction and sintering aspects of fluxed composite reduced iron pellets.

Jan 1, 1996

By T. Gibson

It is generally accepted that South African coal mines have gone through the mechanization of most of its underground mines, and while there certainly were a lot of productivity improvements, the lack of visibility on these machines operating underground still leave vast areas for improvement. The average actual cutting time still remains very low, in the 30 per cent area, which leaves significant improvement possible. Currently all analysis is carried out using hand-written reports. Unfortunately this is subjective and often inaccurate because of human interpretation. In addition in order to avoid costly component failure, a monitoring system is required to warn of eminent failures and condition monitoring. The challenge faced was to supply and install a system that was ‘Open’ and could be retrofitted to existing machines in operation because of the current standard of communication links to the underground sections. In addition it was intended to use, existing ‘off the shelf’ software and hardware and adapting this for the harsh underground mining conditions wherever possible in order to reduce costs. As development occurred, as with all technology, doors opened to other opportunities such as, remote access data logging and Internet based reporting. We focused on the Voest Alpine Bergtechnik (VA) range of continuous miners, as need arose to achieve the desired cost improvements because of the strategy of service contracts the subsidiary company, Voest Alpine Mining & Tunnelling (VAMT) offer the mining industry in South Africa. This paper describes a data logging system that has been installed on various continuous miners that provides data in real time, on line, and that could be expanded to any electrically supplied underground mobile or stationary mining machine.

Sep 1, 2001

By H. H. McGregor

SYNOPSIS Changes in the national productivity (gross national product per head of the population) have been assessed in order to derive a target figure for the required annual increase. The conclusion reached IS compared with the targets of the economic development programme of the Republic. Productivity and management structure in the gold mining industry is then analyzed together with investment in plant, machinery and equipment for rock handling purposes. The conclusion is drawn that productivity improvement does not appear to have accorded with the massive expenditures in plant and equipment, and in augmented management. The productivity of the manufacturing and construction sectors of the economy has been examined. The principal difficulty is that the main avenue of approach is the value of product divided by the total labour force. This introduces inflationary questions, and the use of a suitable deflator becomes of prime importance. Severa1 different methods of assessing the productivity improvement in the industrial sector have been used with what is regarded as a comparatively high degree of compatibility. Improvements in productivity in the manufacturing industry up to 1966 appear, from the information available, to have substantially exceeded comparable figures for the mining industry. There is however evidence that thereafter productivity of the manufacturing industry has not maintained this satisfactory rate of increase. If the economy is to achieve the planned rate of expansion, there is no doubt that greater attention to this aspect will be required in the future than has been accorded to it in the past.

By J. P. Beukes

South Africa holds approximately three-quarters of the world?s viable chromite ore resources and dominates the global production of ferrochrome. Albeit completely unintended, small amounts of Cr(VI) are formed during ferrochrome production. Certain Cr(VI)species are regarded as carcinogenic, hence making the treatment of some ferrochrome waste materials necessary. In this paper, the Cr(VI) treatment strategies currently employed by the South African ferrochrome producers are investigated by means of a literature review and a questionnaire survey. From the discussion, it is evident that various treatment strategies are available to deal with Cr(VI)-containing waste in the ferrochrome industry. However, by far the most commonly applied treatment strategy remains the aqueous reduction of Cr(VI) with ferrous iron. The advantages and the correct application of this strategy, together with the disadvantages and pitfalls, are argued. Innovative improvements on historic practices are also discussed

Jan 1, 2012

By C. Ringas

Pipelines are used extensively in industry to convey various products. Internal corrosion of pipelines can lead to perforation and leakage of the product. A growing problem, not often accurately recognized, is internal corrosion of pipelines caused by bacteria. Microbiologically-induced corrosion (MIC) refers to corrosion caused by a variety of micro-organisms. This form of corrosion is not widely recognized in many industries, although it is widespread and causes many corrosion problems in pipelines, both internal and external. Sulphate-reducing bacteria (SRB) are responsible for the bulk of the corrosion problems caused by MIC. Corrosion caused by SRB is found extensively in water pipelines conveying raw, potable and waste water, as well as in pipelines conveying slurries. This problem also occurs in pipelines conveying crude oil. This paper describes internal corrosion problems of slurry pipelines caused by bacteria and outlines mitigation methods to improve slurry pipeline integrity, thereby extending the life of such pipelines.

Jan 1, 2007

By S. K. Gilman, P. S. Marcos

There are basic areas of importance within a concentrator or mineral separation plant, which require focus to ensure acceptable recoveries, throughputs remain at an acceptable level and product grades meet specification. Professional and para-professionals within the mineral sands industry are in demand due to the booming resource sector. Added to this, new mineral sands operations are being commissioned straining the industry further. These factors have increased staff turnover and introduced many new people to the industry. It is essential these new entrants are armed with basic plant troubleshooting skills relevant to the minerals sands industry to minimize production lost through poor recoveries. Mineral sands processing does not involve highly technical or sophisticated unit processes. However, success is often slow to arise due to a lack of detailed understanding, as well as managing multiple interrelated unit processes within a plant. Fundamental background physical conditions (such as equipment loading and water quality) must be met for unit processes to be efficient. Technical management of these process plants should always include observation of these background conditions for they often provide the answer to underperformance. Examples are presented with an indication of the possible effects on recovery and product grade.

Jan 1, 2007