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By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By C. C. Pretorius

3D seismic surveys have become a well-accepted method of imaging sub-surface geology in the Bushveld Basin. Because both the seismic sources and receivers are placed at surface, most surveys are limited to imaging faults with >=7 m throw. However, some areas such as shaft infrastructure can benefit from the ability to detect smaller structures prior to shaft sinking. Borehole radar and logs such as the acoustic televiewer can identify these structures in the shaft barrel, but not within -200 m from the shaft. Therefore, Anglo Platinum has developed the method of high-resolution 3D vertical seismic profiles (VSPs) for structural sterilization of shaft sites prior to shaft sinking. VSPs utilize a surface source and sub-surface receivers deployed down a borehole. This means that seismic energy goes through the near surface only once, and therefore suffers less frequency loss than when both source and receivers are on surface. Furthermore, VSPs can record 3 component (3C) data which comprises P wave, Sh (horizontal) and Sv (vertical) wavemodes. Because S waves travel at about 0.6 of the velocity of a P wave, shorter wavelengths and therefore higher resolutions are possible using S wave data. VSPs were first used in their one dimensional, zero offset, mode to correlate borehole geology with seismic stratigraphy within seismic surveys. This showed that VSPs record -30% higher frequencies than surface seismic surveys. The program then applied two dimensional VSPs to the problem of imaging geological structure close to a borehole. 2D VSPs confirmed that high frequency results could be achieved, and that this enabled a more accurate image of the Merensky Reef than could be achieved by surface seismic data. Finally, the program has achieved the successful recording and processing of 3D VSP data, with both compressional and shear wavemodes giving a high resolution structural result. Although P wave data gives -30% frequency improvement over surface seismic surveys, S wave data can give as much as 80% improvement, further improving the structural image achieved. The high fixed costs of VSP surveys mean that they should ideally be run in multi-client batches, which can reduce the per borehole cost by up to 50%. Their application is anticipated to be on high value capital infrastructure with a geological risk from faults which are not imaged by surface seismics-generally in the sub-7 m range. Keywords VSP, 3D seismic, bushveld, platinum, resolution, imaging, shear waves, shaft sinking.

Jan 1, 2011

By M. Mostert

Mining companies sponsor a range of non-core, corporate social responsibility projects to adhere to social and labour plans and environmental management prerequisites that form part of a mining licence application. Some companies go above and beyond such projects, sponsoring initiatives that generate renewable energy through solar power, wind energy, natural gas, etc. The challenge for these companies is to choose between a variety of projects to ensure maximum value, especially in times when the economic climate might be less favourable for such projects. The focus of this research was to analyse the concept of sustainability as it exists today, and to apply that to the triple bottom line accounting method in an attempt to quantify the sustainability of a project. Research was done on the methane burn-off project at Sibanye Gold?s Beatrix Mine to establish how such projects are planned and financed, and what impact they have on the triple bottom line of a company. The financial bottom line is, by definition, one that executives understand. This paper also proposes a quantitative method for defining the social and environmental bottom lines as well. By considering the financial, social, and environmental values, the study attempts to determine a monetary value for a sustainable renewable energy project. This monetary value can be compared to similar values obtained for other sustainable renewable energy projects under consideration. The research suggests that monetary value alone is not enough to base a sustainable decision on, and qualitative measures are suggested for use in conjunction with quantitative methods. The selection method proposed should assist the board of a mining company to choose the most sustainable option and the project that will add the greatest value to the company across all three bottom lines. It will also provide increased justification for such renewable energy projects, even in periods of harsh or uncertain economic climates.

Jan 1, 2014

By Q. G. Reynolds

Keywords: Pyrometallurgy, furnace, DC, reverse polarity, dual-electrode The dual-electrode direct current (DC) arc furnace uses two graphite electrodes, one connected as cathode, and one as anode. Such an arrangement avoids some of the design difficulties associated with the anode hearth traditionally used in single electrode and twin-cathode DC furnaces, but can introduce other design and operational difficulties including deflection of the arcs toward the furnace walls. Counter-intuitively, both arc jets in a dual-electrode furnace travel from the electrode down to the bath surface, despite carrying electric current in opposite directions ? this is suggested in the theory of the governing equations of arc formation, and confirmed by experiments using high-speed photography. The dual-electrode arc system at small pilot-plant scale is studied using a transient magneto-hydrodynamic model capable of predicting arc deflection and interaction from first principles, and the results are compared to the behaviour of twin-cathode systems at similar power. Finally, a simple arrangement of the furnace busbars, M configuration, is shown to provide some passive protection against arc deflection.

Jan 1, 2011

By V. S. S. Yadavalli, J. Hager, R. Webber-Youngman

"This article investigates the complex problem of a budgeting process for a large mining operation. Strict adherence to budget infers that financial results align with goals. In reality, the budget is not a predetermined entity but emerges as the sum of the enterprise’s operational plans. These are highly interdependent, being influenced by unforeseeable events and operational decision-making.Limitations of stochastic simulations, normally applied in the project environment but not in budgeting, are examined and a model enabling their application is proposed. A better understanding of budget failure in large mines emerges, showing that the budget should be viewed as a probability distribution rather than a single deterministic value.The strength of the model application lies with the combining of stochastic simulation, probability theory, financial budgeting, and practical scheduling to predict budget achievement, reflected as a probability distribution. The principal finding is the interpretation of the risk associated with, and constraints pertaining to, the budget.The model utilizes a four-dimensional (space and time) schedule, linking key drivers through activity-based costing to the budget. It offers a highly expressive account of deduction regarding fund application for budget achievement, emphasizing that ’it is better to be approximately right than precisely wrong’."

Jan 1, 2015

By J. A. Bakken, M. Tangstad, P. A. Eidem

In the submerged arc production of ferromanganese, sillicomanganese and ferrochromium, the coke bed characteristics play an important role. The basic mechanisms of electric current conduction in the coke be dare not yet fully understood, but important parameters are the material resistivity of coke and the contact resistance between the coke particles. Preliminary tests indicate that the contact resistance is of great importance to the bulk resistance of the coke bed. An apparatus measuring the material resistivity and contact resistance of carbon materials has been developed. Both graphite and industrial coke have been tested. The material resistivity tests were performed on single particles to ensure that the effects of pores and cracks were included and the contact resistances were excluded. Two geometries were tested to obtain the contribution of the contact resistance to the total resistance of two connecting particles. The tests were performed in an inert atmosphere at temperatures and current levels found in industrial submerged arc furnaces. The results show that the method has a satisfactory reproducibility. It was found that the contact resistance is about 10 times higher than the resistance of the material when two particles are in perfect contact and that the resistivity of SSAB coke is more than 10 times higher than that of the graphite at room temperature, but with increasing temperature the difference decreases. For SSAB coke the general trend is that both the resistivity and the contact resistance decrease with increasing temperature.

Jan 1, 2007

Keywords: Pyrometallurgy, Pretoria University Substantial research in pyrometallurgy at the University of Pretoria started in 1980 with the appointment of Rian Dippenaar to the Iscor Chair, a position that he held until 1996, when Chris Pistorius became the leader of this pyrometallurgy group. This paper reviews the main research themes over the quarter-century from 1980 to 2005, as well as some of the industrial developments that have shaped the research approach. The main topics have been the use of electrochemical sensors for equilibrium measurements, ilmenite smelting, steel processing, and reduction.

Jan 1, 2006

By J. A. Kromhout, J. Trouw, A. A. Kamperman, M. Kick

Mould powders play an important role in the stability of the continuous casting process. The main functions of mould powders are to provide sufficient lubrication and to control the horizontal heat transfer. Because process control of thin slab casting is more stringent, it is generally assumed that mould powder properties become more critical as well. In 2000, the Direct Sheet Plant at Corus IJmuiden (DSP) was commissioned, incorporating a thin slab caster designed for casting speeds up to 6 m/min. During commissioning, several operational problems with mould powders were encountered i.e. insufficient liquid pool depth and the formation of rims/lumps. To investigate the operational mould powder problems, some of the mould powders were characterized using physical and mineralogical methods. The results were linked to operational experiences. It was concluded that for thin slab casting, a stable slag formation is obtained with a proper choice of free carbon and an even distribution of the carbon particles within the granules. The physical properties of mould powders are not as critical as expected when the additional mineralogical requirements are taken into account. Keywords: mould powder, characterization methods, thin slab casting.

Jan 1, 2004

Keywords: Stellenbosch, university, teaching, research The pyrometallurgical activities at Stellenbosch University are reviewed in this paper. The history of the activities, both in teaching and research, is outlined, as well as some of the perceived research opportunities that the University of Stellenbosch is currently focusing on. The course content, as well as its relationship to other courses in the curriculum, is discussed and the interfaces between the courses are explained to present a holistic picture of the education an engineering graduate receives in process pyrometallurgy.

Jan 1, 2006

By F. M. L. Mulaudzi

Behaviour studies of metal dusting processes and associated filamentous carbon formation were undertaken on Alloys 600, 601, and 800 using a simulated metal dusting environment of 25C0-70H2-5H20 (vol.%) at 650°C. These samples were studied visually and by optical microscopy, scanning electron microscopy with energy-dispersive X-ray spectroscopy (SEM-EDX), transmission electron microscopy with energy-dispersive X-ray spectroscopy (TEM-EDX) and x-ray diffraction (XRD). Visual examination and SEM surface observation showed that Alloy 800 suffered metal dusting attack at an early exposure reaction period. The coke deposit amounts increased significantly with reaction time from 168 hours to 336 hours in Alloys 600, 601, and 800. Alloy 800 showed pitting after 168 hours' exposure, and the degree of pitting increased after 336 hours. XRD showed all these alloys had a common austenitic phase, with Alloy 800 also having ferritic metal particles. Alloy 800 after 168 hours' exposure had a complex phase mixture on the surface, consisting of ferritic Fe and austenitic FeNi phases. For coke deposit, there were also Fe304, Fe3C and graphitic carbon. The existence of Fe, Ni, and Cr metal particles, and also graphitic carbon in coke deposits, was confirmed by EDX analyses.

Jan 1, 2013

By J. E. Davidsen, M. Honstad

"A well-maintained tap-hole channel is important in order to achieve good and stable furnace operation over time. A worn or short tap-hole channel can lead to more violent flow, significantly increasing the fume emissions during tapping and leading to more metal being mixed with and lost to the slag. Over time, a worn tapping channel might cause side channels and damage to the lining around the tap-hole area. This can result in a burn-through which is a considerable safety risk and will cause significant production losses. At Eramet Norway Porsgrunn, tap-hole maintenance has been done regularly with electrode paste for over three decades with good results. This article summarizes some of the experiences obtained from this practice on a 33 MW SiMn furnace, as well as a change to a coal tar pitch-free binder. IntroductionA well-maintained tap-hole channel is important in order to achieve good and stable furnace operation over time. Metal and slag are regularly tapped from the furnace and may cause a lot of wear on the tapping channel, increasing the risk of lining damage and ultimately leading to a burn-through. On furnace 10 at Eramet Norway Porsgrunn, the tap-hole area is the part of the lining that has been by far the most prone to burn-through since the startup of the furnace.Experience shows that almost all lining problems have started with burn-through in the tap-hole area or in close proximity to the tap-hole. During tap-hole repairs, side channels with metal and slag have also been observed emanating from the main tapping channel. In addition, a shorter tapping channel will cause more violent flow. This can lead to more metal droplets being entrained in the slag, and increase the risk of the furnace not being closed properly at the end of the tap.As a burn-through is a considerable safety risk, and also causes significant production losses, systematic work has been performed over the years to maintain the tapping channel in order to prevent burn-through."

Jun 1, 2019

By S. J. Lötter, J. T. Nel, W. Purcell

"SynopsisGlow discharge optical emission spectroscopy (GD-OES) is an analytical technique used in the analysis of solid, conducting materials. Though primarily of interest as a depth profiling technique on samples with varying layers of both conducting and non-conducting materials, it is also capable of rapid bulk analysis of homogenous, solid samples. GD-OES combines the advantages of ICP-OES (wide detection range, speed, and lack of interferences) with the solid sampling of XRF techniques. This allows the analyst to not only quantify the elemental composition of a sample, but to evaluate it in terms of homogeneity with depth, a field in which auger electron spectroscopy (AES) and secondary ion mass spectrometry (SIMS) have traditionally been the primary techniques. Although GD-OES does not replace these useful techniques, it does offer various advantages over them, making it an excellent complementary analytical tool.In GD-OES analysis, a low-pressure glow discharge plasma is generated with the sample material acting as a cathode, accelerating the cations in the plasma towards the sample surface. This bombardment causes the sample material to ‘sputter’, essentially knocking free atoms or molecules of analyte material, which are then drawn into the plasma where they are excited. The light emitted by this excitation is then diffracted to separate the wavelengths emitted by the specific elements and detected by a spectrophotometer. The intensity of the signal is directly proportional to the quantity of analyte element present in the sample, allowing simple calibration and quantitative determination of the elements. Technological improvements made in the past twenty years or so have significantly increased the usefulness of GD-OES for surface analysis. Faster plasma stabilization and start-up allow for the quantification of surface layers as thin as 1 nm. Sputter rates have been accurately measured for many common materials, allowing them to be built into software libraries in the instrument’s control software. This dramatically expands the usefulness of this software and the ease of performing analyses.GD-OES analysis of nuclear materials allows for the rapid determination of the elemental composition without the requirement of initial dissolution. The thickness of any corrosion layers on nuclear materials can also be determined."

Jan 1, 2015

Keywords: Pyrometallurgy, zinc, electrowinning Zincor has been producing zinc since 1969 via the roast-leach-electrowinning process. It is the only primary zinc producer in South Africa, and currently supplies the entire country with zinc. The plant was built by Goldfields of South Africa, on the site of an old gold and uranium mine. Since then, the ownership of the plant has changed a couple of times, and the plant and process have also been improved. Production output has increased from around 80 000 tons per year to more than 110 000 tons per year. This was done mainly through increasing the capacity of the roasters and acid plant. Zincor produces four main grades of zinc: SHG, Zn1, Zn2, and Zn4, in three shapes: a 25 kg ingot and 1 and 2 ton jumbos. In 2005, a pre-alloy furnace was built that enabled the production of jumbos pre-alloyed with aluminium. This has allowed Zincor's customers to improve the efficiency of their continuous galvanizing lines and to lower their production costs.

Jan 1, 2006

By M. Yavuz

One of the challenging problems for optimization in mining operations is to choose the best equipment among the alternatives. Equipment selection is an important task for mine management due to its operational cost, and is also an integral part of mine planning and design. Equipment selection is not a well-defined process because it involves the interaction of several subjective factors or criteria. Besides, decisions are often complicated and may even embody contradictions. Therefore, equipment selection is considered as a multi-criteria decision-making process, and suitable decision-making methods should be employed in this process. In this study, the loader selection for Aegean Lignite Colliery was made by using both the analytic hierarchy process and Yager’s method. Owing to the misusage of Yager’s method in the past, a new procedure is proposed in this paper for making proper decisions. It is highly recommended in this purposed method that criteria or alternatives should be grouped so as not to exceed the limitations of human performance (nine criteria/alternatives). The most appropriate solution for the loader selection was investigated by obeying this limitation for each method, and the results were compared. At the end of the decision-making process, a sensitivity analysis was applied for each method in order to see how a criterion affects the final decision. The advantages and disadvantages encountered during the application of each decision-making method are presented.

Jan 1, 2015

By N. Andersen

During the preliminary design phases and feasibility study of a proposed vertical shaft, a vertical diamond drill-hole is normally drilled on the site. This paper outlines how rock mass characteristics, in-situ rock stress, rock strength, hydrological characteristics, and structural parameters can be determined using wireline logging of this borehole. In addition, a rock mass classification scheme is developed, based on published work, and in particular the Q-factor is adapted to assess the stability of raise-bored shafts. The ‘stick plot’ is introduced, which combines all geotechnical parameters applicable to the stability of a vertical shaft into a colourcoded format where cross-correlations can readily be made on a day-today basis during the shaft-sinking process.

Jan 1, 2015

By Y. I. Yang, Y. -B. Tang, D. -J. Ma

Chlorine-containing minerals are commonly present in coal. Associated minerals such as pyrite can undergo exothermic reactions. Consequently, it is of great significance to study the effect of inorganic chloride on the spontaneous combustion of coal. In this study, the effects of five inorganic chlorides (sodium chloride, magnesium chloride, potassium chloride, calcium chloride, and zinc chloride) on the spontaneous oxidation of coal were investigated. Analysis of the gaseous products of coal oxidization at low temperatures (323K to 453K) showed that the presence of inorganic chlorine in coal markedly decreases O2 consumption and the generation of CO and CO2. Samples of raw coal and chlorine-loaded coal were oxidized for 36 hours under the same experimental conditions. Infrared diffuse reflectance spectroscopy results showed that inorganic chloride can inhibit the oxidative decomposition of some functional structure components (methyl, methylene, methine, and hydroxy) in the coal. The influence of inorganic chloride on the oxidation characteristics of the functional groups in coal during spontaneous combustion was investigated using benzyl alcohol and 1-phenylpropanol as model compounds, which were tested under the same experimental conditions as the coal samples. The oxygen consumption of model compounds with and without the addition of inorganic chloride further suggested that inorganic chloride may hinder the oxygenolysis of these structures during low-temperature oxidation. This phenomenon can be attributed to the radical reaction from the perspective of radical chemistry. It can therefore be concluded that inorganic chlorides play an inhibitory role in the spontaneous combustion of coal.

Jan 1, 2015

By J. Chirasha

Keywords: Pyrometallurgy, ferrochrome, smelting, investment, Zimbabwe Four smelting plants currently make up the ferrochrome smelting capacity in Zimbabwe. Zimbabwe Alloys and Zimasco represent more then ninety per cent of Zimbabwe?s ferrochrome smelting capacity, while Maranatha and Oliken contribute the difference. Very limited investment in the sector (even for the expansion of existing smelters) has been experienced over many years, despite the fact that about 95% of the world?s chrome ore resources are in the Bushveld Igneous Complex of South Africa and the Great Dyke of Zimbabwe. The Bushveld has a greater quantity but a lower grade than the Great Dyke. A ten per cent increase in Zimbabwean ferrochromium production has been recorded in the past ten years, showing an almost stagnant capacity investment.

Jan 1, 2011

By C. Sima, M. Legoabe

Keywords: Pyrometallurgy, furnace, platinum Mortimer Smelter is one of the three smelting operations in the Anglo Platinum Group. It is located in the Limpopo Province, approximately 100 km north of Rustenburg, and approximately 15 km west of Northam. The smelter operation is the smallest of the three smelting operations in the group, with a smelting capacity of 170 kt/annum. The operation consists of a Larox filtration plant, a Drytech flash drying plant, a modified Elkem / Hatch 19.5 MVA furnace, and a 60 t/h matte crushing plant. The operation does not convert its furnace matte, and hence the final sulphide rich matte is transported to and processed further at the Anglo Platinum Converting Process (ACP) within the Waterval Smelter Complex in Rustenburg. Furnace slag is granulated, and processed through a slag mill, or transported to a slag dump.

Jan 1, 2006

By D. R. Hack

The complexity of commercial mining software has gained rapidly over the past decade as hardware developments have surpassed software capabilities at a staggering rate. Software users, recognizing the limitations of off-the-shelf applications, have adapted embedded scripting languages. Custom programming has always had a vital role in mine computing innovations, yielding a dynamic research environment in industry and academia. Fields such as industrial minerals can benefit from customization of existing software, since the majority of mine planning software was designed for large metal mines. Different customization approaches utilizing embedded scripting languages are presented, with examples of sand and gravel applications in development. Following implementation by Surpac and development of the Surpac Command Language, Tcl has been widely applied. Mintec introduced Python, also extensible and portable amongst various operating systems, for use in their MineSight products. In early 2000, Gemcom introduced the use of Microsoft Visual Basic for Applications, widely used customization tools for a decade. Datamine implemented a flexible multi-language approach, with all program commands and processes available through the COM Server Interface. This extends customization from the existing macro language to scripting in HTML, JavaScript, or any language that supports COM.

Jan 1, 2003

By N. Demirel, O. Gölbasi

Draglines are massive machines extensively utilized in opencast mines for overburden stripping. The demanding working environment induces fractures, wear and tear, and fatigue failures in dragline components and eventuates in extended maintenance, lengthy downtimes, and loss of production. The bucket is the main source of external loads on the machinery, since interactions with ground materials take place in this region. This study aims to develop a generic finite element model of the stress on an operating bucket. This entails (i) three-dimensional modelling of a dragline bucket, (ii) analytical estimation of resistive forces in the bucket movement, (iii) three-dimensional simulation of the moving bucket using finite element analysis (FEA), and (iv) sensitivity analysis to examine the effect of formation characteristics on stress variation. Simulation results imply that the drag hitch and digging teeth are the elements of the bucket that are most prone to failure. In addition, sensitivity analysis indicates that internal friction angle of the formation is the dominant parameter leading fluctuations in stress values. Changes in stress level are least influenced by formation density.

Jan 1, 2015