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By Y. Belloa, C. Dorfling

The presence of impurities such as Se and Te in copper sulfate leach solutions can have a detrimental effect on electrowinning efficiency. These elements can be removed from the solution by precipitation; sulfurous acid is commonly used as a precipitation reagent, while studies have also reported improved precipitation with the addition of metallic copper. This paper aimed to determine the effect of conditions used during the solution purification step on the characteristics of the precipitates that formed. Precipitation tests were performed in a batch reactor with copper sulfate leach solutions obtained from the base metal refinery of a platinum group metal producer. The effects of agitation rate (250 and 500 rpm), SO2 flow rate (4.4 and 5.8 mL/min.L), temperature (65 and 95°C) and metallic copper powder addition (0, 1 and 2 g/L) on the characteristics of the precipitates formed during the tests were determined using scanning electron microscopy. The major phases detected in the precipitates formed when using SO2 as the only precipitation reagent were elemental Se and Cu2Se. The introduction of copper powder led to the production of different sulfide phases for the experiments conducted at 65°C irrespective of the values of the other reaction parameters. At 95°C, Cu crystals, Cu2O and tiny inclusions of Cu2(Se,Te) were the prominent phases noticed in the precipitates produced from all the tests conducted with copper powder as precipitation enhancing reagent. Keywords: copper, precipitation, selenium, tellurium

Jan 1, 2020

By M. Aatach, St. Gaydardzhiev, M. Kadiyski, E. Visariev, V. Stoilov

Detailed process oriented characterisation on representative samples from plant survey of the slag flotation plant belonging to Aurubis, Bulgaria has been realised in order to evaluate the mineralogical occurrences of Cu, Ni, Mo and Co bearing phases. The slag subjected to flotation consisted in majority of fayalite, magnetite-iron oxides and a glass-like phase. Ni and Mo have been found to be closely associated to magnetite and fayalite. The tailing from the slag flotation has been subjected to sulphation roasting followed by water leaching as a hydrometallurgical means to recover the remaining Cu, Mo, Ni and Co. Based on the various sulphation roasting conditions (acid dosage, duration, temperature) copper, nickel and cobalt were brought to solution to a different extent. Molybdenum was the most difficult to be rendered soluble due to its close association with iron, suspected to form an insoluble compound with it. Sulphation roasting performed at 350ºC has secured the best extraction degree for Cu, Mo and Co, while maximum recovery of Ni has been documented when roasting was done at 150°C. Keywords: Copper slag; characterisation; SEM; roasting; metals leaching, hydrometallurgy 16(2), 153–65.

Jan 1, 2020

By J. Hadjigeorgiou, G. Knox

There is a considerable wealth of information on the behaviour of rockbolts under axial loading conditions both in situ and under controlled laboratory conditions. However, there is comparably less data on the behaviour of rockbolts in shear. Several authors have contributed to the understanding of the behaviour of conventional rockbolts’ performance under shear loading. Much of this data have been gathered through experimental programmes conducted on sections of the rockbolt. Considering the continuous coupling between the rockbolt and borehole interface, the approach is justified. Due to the design premise of energy-absorbing rockbolts with discrete couplings, full scale testing is required to quantify the behaviour of the rockbolts. This paper reviews published results obtained from two testing facilities, which are the SINTEF rockbolt pull test rig in Trondheim, Norway and the Epiroc Combinations Shear and Tensile test rig in Johannesburg, South Africa, both capable of conducting full scale testing of rockbolts. Based on this high-quality database it was possible to identify three distinct responses of rockbolts in shear. The behaviour under load is controlled by the presence or absence of an encapsulation medium (resin/cement grout), the reinforcement mechanism, and whether the rockbolt is continuously or discretely captured. As a reference the results are compared to the performance in shear of conventional grouted rockbolts.

Nov 24, 2025

By S. Mudau, P. Mohasoa, M. J. Cole

Derelict and ownerless (D&O) mines in South Africa have been an ongoing concern for over a decade. While some progress has been made to rehabilitate D&O asbestos sites, significant work remains, exacerbated by the growth in illegal mining. There are concerns regarding the accuracy and transparency of the D&O database, lack of oversight, and constrained funding, and the government is increasingly looking to the private sector to fund rehabilitation. Given these challenges, a new, sustainable approach to D&O sites in South Africa is needed to bring clarity and transparency to the process, recognise responsibilities and promote partnerships, and explore economic opportunities at D&O sites to reduce the financial liability and respond to the growing demand for critical minerals. This article has three components: i) reviews of international D&O good practices; ii) it analyses South Africa’s current approach and the D&O sites; and iii) proposes a D&O framework that addresses data, risk ratings, responsibilities and rehabilitation, economic opportunities, and stakeholder engagement. The study finds that the majority of the 6,100 so-called abandoned D&O mines are quarries and mine site features, 16% are operational, at least 11% have owners, and only 752 (12%) require rehabilitation. The framework aims to bring clarity and fairness to decision-making and to assign risk and responsibility for rehabilitation and seeks to incorporate economic opportunities to reduce the financial burden of rehabilitation, create jobs for local communities, and respond to the growing demand for critical minerals for the clean energy transition.

Apr 25, 2025

By P. P. Kim, M. Tangstad, T. A. Larssen

"The kinetics of MnO and SiO2 reduction in SiMn slags based on Assmang/Comilog ore and HCFeMn (highcarbon ferromanganese) slag were investigated between 1500 and 1650°C under a CO atmosphere. The results showed that charges containing HCFeMn slag had relatively faster reduction rates than those without. The difference in the driving force for MnO reduction was insignificant among the SiMn slags at 1500°C, which implies a low contribution of the driving force for reduction rate. The slag viscosities were also rather similar, around 1 poise at 1500°C, which could not explain the different reduction rates. Instead, the different charges containing various sulphur contents are believed to give rise to the varying reduction rates. The estimated activation energies for MnO reduction were around 500–920 kJ/mol for charges containing HCFeMn slag, and between 250–300 kJ/mol for those without. Based on the estimated kinetic parameters, the considered rate models were able to describe the reduction of MnO and SiO2 in SiMn slags between 1500 and 1650°C. IntroductionManganese ferroalloys such as ferromanganese (FeMn) and silicomanganese (SiMn) are important ingredients in steel production due to the beneficial effects of manganese on the physical properties of steel. Mn enhances the strength, toughness, and hardness of steel products, and both Mn and Si are used as deoxidizers to prevent the development of porous structures (International Manganese Institute, 2014; Olsen, Tangstad, and Lindstad, 2007; Subramanyam, Swansiger, and Avery, 1990; Tomota et al., 1987).The thermodynamic background of manganese ferroalloys is well established (Olsen, Tangstad and Lindstad, 2007), but kinetic information is rather scarce, especially for the SiMn process (Tranell et al., 2007; Tore-Andre Skjervheim, 1994). The absence of kinetic information makes it more difficult to understand the reduction mechanisms of MnO and SiO2. It is not clear how different raw materials affect the SiMn process. The main metal-producing reactions in the SiMn process are described by Equations [1] and [2]:"

May 1, 2019

By I. Silin, H. Wotruba, A. Liono, I. Volobayev, Y. Rubinstein, D. Gürsel

Old, abandoned or in situ processed and storaged tailings can be a potential source of remained valuable metals and minerals. By reprocessing of tailings, it is possible not only to achieve economical profit from recovery of valuable metals, but also to reduce environmental damage caused by tailings such as generation of acid mine drainage from sulfide minerals, mobilization of heavy metals, soils and groundwater contamination. In addition, storage facilities can be successfully redesigned with modern geotechnical requirements and monitoring to avoid a dam collapse of abandoned tailings. In this case study, the processing of low grade abandoned tailings was investigated. Copper (0.15%), cobalt (0.032%) and gold (0.35 ppm) were determined as main valuable and recoverable metals. Cobalt occurs as cobaltite and cobaltiferrous pyrite, while chalcopyrite represents copper. The fine fraction of tailings below 32 μm is enriched with cobalt and copper. Preliminary test-works with initial tailings sample were aimed to recover copper, cobalt and gold. The previously tested magnetic and gravity separation could not recover the metals in a pre-concentration step. Flotation tests of the tailings sample had shown a suitability for flotation without previous regrinding of the tailings. The valuable minerals are first proposed to be recovered by collective flotation, followed by a selective circuit with production of a low grade copper concentrate and a cobalt bearing pyrite concentrate. Based on various tested collectors, amounts of sulfidisation agents and activators, a suitable reagents regime was determined and used for up-scaling by locked cycled test. Keywords: reprocessing, tailings, copper, cobalt, gold, flotation, cobaltite, cobaltiferrous pyrite

Jan 1, 2020

By A. Çelik

Wheel loaders are widely used in many sectors due to their mobility, operational flexibility, and low costs. The literature is mainly focused on improving the hydraulic, mechanical, and electronic subsystems of these machines in terms of efficiency or developing strategies for controlling these systems. In this study, the effects of the loader operator and different working conditions on the loading performance were investigated. The study was carried out at the Can Lignite Enterprise (CLI), which is a major coal producer in Turkey. In the study, which lasted approximately four months, a total of 808 measurements were performed to investigate seven different scenarios. The effect of a single parameter on loading performance was investigated in the first six scenarios. The results showed that the biggest impact on loading performance was caused by the operator's experience with 63.4%. On the other hand, the worst and most ideal working conditions determined from the first six scenarios were tested in the seventh scenario. It was tested as a script. The test results showed that the loading performance was 285.5% more effective under the most ideal operating conditions compared to the worst operating conditions. In addition, in the study, the loading performances of five loaders with four different capacities were examined in terms of energy efficiency and it was determined that the Kawasaki 115 work machine, which has a higher model and lower engine operating hours, was more advantageous. In the study, various suggestions were developed in parallel with the research results. The most prominent and easiest to implement of these suggestions is related to the selection of the loader operator.

Nov 27, 2024

By H. von Blottnitz, B. E. Isheloke

Mining is a significant economic activity in most Southern African Development Community (SADC) countries, and mineral beneficiation has been identified, and controversially discussed as one of the possibilities for industrialisation. With many member countries being economically too small to muster the human and financial resources which beneficiation requires, the recently adopted Regional Mining Vision (RMV) envisages interventions at a regional level. An opportunity arose to ask industry role players to what extent the SADC appears to support regional beneficiation policy interventions undertaken by member countries, and what the challenges are in undertaking beneficiation regionally, as a complement to, or substitute for country-specific beneficiation policies. Twenty-five semistructured interviews were conducted with experts from SADC member countries during the 2019 Mining Indaba. Participants were divided on whether beneficiation should be carried out nationally or in the SADC region. While beneficiation could support value-keeping, key challenges were found to be infrastructure development (i.e. energy, water), scarce skills, access to technology and related costs, but also lack of free trade and movement. We submit that a more integrated beneficiation strategy for the SADC region, as is being developed through the RMV, would indeed be relevant in the future. Keywords: Mineral beneficiation, regional integration, beneficiation policy interventions, African mining vision, mining, SADC

Jan 1, 2020

By F. Shi , D. Lay, C. Antonio

High Voltage Pulse (HVP) technology has the potential to transform traditional mineral processing practice in the mining industry. HVP pre-treatment has been shown to enable ore preconcentration, achieve ore pre-weakening and improve mineral liberation. In order to improve the efficiencies of these novel HVP applications, it is essential to understand how HVP operational factors affect ore breakage in HVP pre-treatment. A two-level fractional factorial experiment using two rock samples, a gold-copper ore and a basalt sample, was performed to determine which factors have statistically significant influences on breakage probability, size reduction, and energy efficiency, and which factors have insignificant influences. Operational factors investigated include applied voltage, electrode gap, number of pulse discharges, the number of rocks being processed per batch, and rock size. In total, 1920 batch tests were conducted. For ore breakage characterised in terms of breakage probability and the degree of size reduction during HVP pre-treatment, the dominant factors were identified to be the number of pulse discharges, voltage, and the number of particles present in the processing zone. As all these three factors are related to the specific energy, it is concluded that the specific energy is the most important factor controlling ore breakage in HVP treatment. In terms of the efficiency by which spark energy is transferred from the generator energy, the factors found to have the most dominating influence were the particle size, the number of rock particles present in the processing zone and the voltage. Increasing the values of these factors reduced the loss of HVP energy during the energy transfer process. The factorial experiment using the two ore samples with vastly different mineralisation produced similar results. This proves that the dominant factors affecting HVP breakage are generally applicable to different ores types. Keywords: High voltage pulse, ore breakage, factorial experiment, specific energy

Jan 1, 2020

By S. Chai

Waste dumps are widely used to discharge stripped mine wastes in open pit mining methods. As mining progresses, the height of the waste dumps will increase gradually, which may induce sliding failure once the height exceeds a critical value. Therefore, estimation of the maximum dumping height is crucial to the life-cycle use of a waste dump. However, published information about the maximum height of mine waste dumps are extremely rare. In this study, the maximum dumping height is estimated based on the strength-reduction technique by numerical simulations. The influences of dump geometry and properties on the maximum height are investigated. The results show that the maximum dump height decreases as the dump slope inclination angle α or the unit weight of dump materials γ increases, but decreases when the shear parameters of dump materials (cohesion c and internal friction angle ϕ) increase. The maximum height starts to increase with the ground inclination β when shear failure occurs at the interface between the dump and the base. Furthermore the effects of the dump width B, Young’s modulus E, and Poisson’s ratio μ of dump materials on the maximum height are almost insignificant. Good agreement was found between numerical results available in the literature and those obtained in this study.

Oct 1, 2022

By T. Nesane, S. S. Mnyakeni-Moleele, L. C. Murulana

The effectiveness of two synthesized ionic liquids, 1-(benzyloxy)-1-oxopropan-2-aminium 4-methylbenzenesulfonate (1-BOPAMS) and 4-(benzyloxy)-4-oxobutan-1-aminium 4-methylbenzenesulfonate (4-BOBAMS), were evaluated for mild steel corrosion inhibition in 1.0 M hydro-chloric acid solution, using electrochemical impedance spectroscopy (EIS), potentiodynamic polarization (PDP), and gravimetric techniques. Organic moieties responsible for the adsorption process on mild steel surface were investigated using Fourier transform infrared spectroscopy (FTIR). Gravimetric analysis revealed that the inhibition efficiency of 1-BOPAMS and 4-BOBAMS increased with concentration, with maximum inhibition values of 90.32% and 97.91%, respectively, at the highest concentration of the inhibitors. Gibbs free energy (ΔG°ads) values indicated a strong interaction between the mild steel surface and the molecules of the ionic liquids, and that the adsorption process was spontaneous. These values also show that the inhibitive nature of ionic liquids against mild steel corrosion is caused by a mixedtype of adsorption film formed on the steel surface. The Langmuir adsorption isotherm was used to describe the adsorption of ionic liquid molecules onto the mild steel surface. Polarization curves showed that 1-BOPAMS and 4-BOBAMS have a similar effect on both the anodic and cathodic half-reactions, indicating that they prevent the dissolution of mild steel through both physical and chemical process. Nyquist plots were defined by incomplete semicircle capacitive loops, showing that the charge transfer mechanism controls the corrosion of mild steel in acidic solution.

Apr 1, 2021

By L. Roux

This review was initially motivated by the author’s own experience in attempting to reconcile run-of mine production tons with the Coal Resource and Reserve estimation of mineable, in-situ tonnages. The primary scientific measurements and observations that are collected during exploration at the beginning of the value chain will have a profound effect on the future of the mining operation. Due diligence must be exercised during the planning of a new mine and during the life of an existing mine. The comments provided by the technical and economic assessment group of Venmyn Deloitte confirmed the need for this critical review. They found the reporting of Coal Resources in South Africa to be inconsistent. This was particularly problematic in the Waterberg Coalfield in Limpopo Province. In this coalfield there are two types of coal deposit present. The first is comprised of the thick intercalated, cyclic coal and shale/mudstone sequences of the Volksrust Formation. This overlies multiple coal seams within the Vryheid Formation, each of which is thick enough to be extracted as an individual raw coal unit. On the other hand, the interbedded coal and shale seams of the Volksrust Formation require beneficiation to separate the coal from the shale. The review examines practices and methods, investigates alternatives, provides checks and balances, and tests these against actual production reconciliations. In conclusion, the best estimates of the mineable, in-situ tonnage will be obtained from the air-dry raw material density. These estimates should be adjusted afterwards to allow for free moisture content. The adjustments are derived from reconciliation data. The greatest contributing factor to the over-estimation of Reserve tonnages is the moisture content of the raw material. This fluctuates significantly under varying conditions in situ, as well as upon exposure to the natural environment. The air-dried density of the raw material includes inherent (structurally bound) moisture within the matrix. It provides credible tonnage estimations of raw material available while also providing an indication of voids within the volume of material being assessed. The calculated solids percentage can be used to adjust the specific gravity, which is determined via the Archimedes principle. This will supply a representative estimate of the material to be mined.

Nov 1, 2021

By P. Malíková, I. Osičková, R. Sousedíková, P. Rys, J. Dvořáček, S. Heviánková

Each mining project goes through the same life-cycle, from prospecting and exploration to closure and post-closure periods. This prompts the question whether the closure of a mine constitutes the end of its life-cycle or whether the decommissioned mine can be employed for some other purpose. Best-practice references indicate that there are many viable options. In our opinion, the production of service water is one such option. Laboratory research was carried out on the water from a flooded underground coal mine in Ostrava- Karviná coal district, Czech Republic, concerning the production of service water from pumped minewater. The research proved the practical feasibility of service or process water production. Given the effect of global climate change with regard to water resources, good prospects for this additional resource can be assumed since the water has to be pumped in any case for safety reasons.

Oct 1, 2022

By B. P. Watson, D. Hoffmann, D. P. Roberts

Potholes on the Merensky and UG2 reefs in the Bushveld Complex occur as near-circular to elliptical depressions or slumps on the reef horizon, normally presenting as severe disruptions which prevent economic extraction. Within the pothole, the reef and other strata may either be attenuated, absent, or highly deformed, this being the result of the overlying hangingwall strata having slumped down. The hypotheses for pothole formation involve several mechanisms, including downward erosion, upward fluid movement, or synmagmatic deformation. When potholes are exposed in mine workings, significant fracturing is often observed. This fracturing is particularly evident in anorthosite rock types. Stress measurements were conducted in a pothole on the Merensky Reef to determine if the fracturing was due to high stress conditions. The paper describes the measurement results and numerical modelling that was done to determine the influence of depth and mining on the stress condition at the site. The results show that high stresses do exist in at least some potholes, and that current formation theories do not adequately explain the measured stresses. In support of understanding the high local stress associated with the pothole, the study explored several rock engineering modelling processes to validate the conditions of the study site and enclosing excavations. A better understanding of the stress conditions in potholes with additional data could lead to more appropriate support design and avoidance of potential rockbursts in these structures.

Jan 1, 2021

By M. S. Shishvan, S. Klerkx, J. Sattarvand

The inaccurately drilled blastholes from the planned locations cause changes in the spatial distribution of explosive energy; some areas of the blast may receive a surplus of explosive energy, while others see a reduction. This results in less uniform fragmentation, reduces the efficiency of mining operations and increases costs. Additionally, it can lead to slope stability issues, flyrock, and uneven benches. To mitigate these problems, this study attempts to reduce differences in the explosive energy distribution (EED) through an optimization approach that adjusts the height of explosive columns in blastholes. Two optimization algorithms, the Genetic Algorithm (GA) and Tabu Search (TS), are tested. The latter is preferred for its local search neighbourhood strategy that gives superior computation times. Applications on different blast patterns result in improvements of 0.53–1.54%, or 2.14–3.94% when only the affected blocks are considered.

Sep 1, 2021

By R. Minnitt, C. Morgan, D. Fourie

The problems associated with outliers and their adverse effects on resource estimation in deep level South African gold mines are presented, and solutions suggested in available literature are reviewed. Traditional Witwatersrand type outlier capping uses the 99th percentile grade as the upper limit, a somewhat blunt approach. The occurrence of high and low grade areas in mining operations and the estimation of resources using geostatistical techniques require that the assumption of stationarity be upheld. Honouring the stationarity of data requires that mining areas be subdivided into appropriately sized and spaced domains. In order to overcome high-grade conditionally biased block estimates, the overly strong influence of extreme grades is mitigated by using naturally occurring grade sub-domains, by identifying outliers within the grade sub-domains, allocating relevant capping limits, and weighting them in a post-estimation process to. Rather than applying a capping value across a domain it applies a maximum cap based on the extreme value and its range of influence; the method also ensures that relevant capping occurs even in lower grade sub-domains. The proposed method for capping outliers recognises that metal contained in high grade chip samples should not be over-capped, and based on the grade of surrounding samples. The post-processing method of capping outliers does not interfere with the kriging equations. The method is simple, elegant, and can be easily applied. An advantage is that the output from the kriging process is not overwritten, allowing for comparison between original kriging results and post-processing results.

Sep 1, 2021

By L. Ziyuan, S. Chunbao, K. Jue, H. Yang, S. Tichang

In this study, potassium ferrocyanide, a non-toxic cyanide precursor in dark and diffuse reflection environments, was applied as a reagent for the leaching of gold. The free cyanide ions were gradually released from the potassium ferrocyanide solution under the ultraviolet light. Orthogonal leaching experiments were performed in gold ore to analyse the effect of solution pH, potassium ferrocyanide dosage, and temperature in potassium ferrocyanide solution system under UV light. Response surface methodology (RSM) was applied to explore the role of potassium ferrocyanide in gold leaching, Optimised results showed that the gold recovery reached 67.74% in a high-alkaline environment at a 12.6 pH, 3.8 kg/t potassium ferrocyanide dosage, 62°C, and irradiance of 10mW/cm-2. The gold leaching kinetics was monitored by quartz crystal microbalance with dissipation (QCM-D) of potassium ferrocyanide solution. The results indicate that the gold extraction process consists of two processes: adsorption and leaching, and a rigid adsorption layer formed on the reaction surface. Furthermore, Xray photoelectron spectroscopy (XPS) analysis of the gold sensor surface after leaching reaction showed that -C≡N appears on the gold sensor surface, and the gold is oxidised to form AuCN complexes. Keywords: Gold leaching, potassium ferrocyanide, UV light, QCM-D, AuCN complexes

Jan 1, 2020

By L. Ntlhakana, K. Khoza-Shangase, G. Nelson, I. Maposa

Occupational noise-induced hearing loss (ONIHL) is associated with various risk factors in South African mines. We investigated the association between standard threshold shifts (STSs) and exposure to noise and platinum mine dust (PMD), using demographic data, five years of annual audiometry screening results, and noise and dust exposure data. Miners’ age, sex, percentage hearing loss (PLH), and dust and noise exposure data were gathered, and a linear mixed effects regression model used to predict STS. Average occupational exposure levels to noise and dust were calculated from recorded measurements. A total of 12 692 records were analysed. Most miners were male (89.6%) and more than 50% were younger than 41 years. More than 70% were exposed to > 85 dBA noise and 58% were exposed to 1.5–2.99 mg/m3 PMD. Changes in hearing levels ranged from 8.3 dBHL at baseline (2014/2015) to 10 dBHL in 2016 (STS), with no changes thereafter. The model showed that the estimated effect on STS for males was 27% and 21% higher than for females, for the left and right ear, respectively The estimated effect of age, PLH, noise exposure and years of exposure on STS was < 10% for each variable. There was no statistically significant association between PMD and STS. The combined effects of age, sex, years of exposure to noise, and noise exposure levels, and strength of associations can be used to predict STS for this group of miners. Our findings may be used to measure the efficacy of the mine’s hearing conservation programme.

Aug 1, 2021

By R. C. A. Minnitt, A. Akpabio

This study presents a rigorous comparison between ordinary kriging and commonly used machine learning algorithms, those being, linear regression, support vector regression, decision trees, random forests (RF), and k-nearest neighbours for spatial interpolation of platinum grade estimates in a complex ore body within the Bushveld Igneous Complex. Using only X and Y coordinates as predictors, both ordinary kriging and machine learning models were evaluated at point and block supports under traditional and spatial block cross validation frameworks. While naive validation results suggested superior performance for k-nearest neighbour and random forest (R² = 0.92 and 0.86, respectively), these were revealed to be overly optimistic under spatial dependence. Spatial block cross validation results demonstrated substantial declines in model performance, with R² often falling below zero, particularly for decision trees and k-nearest neighbour, indicating strong overfitting and limited generalisability. Ordinary kriging exhibited more stable, albeit modest, performance under spatial validation, reflecting its strength in geostatistical interpolation when contextual geological variables are unavailable. The study underscores the critical importance of spatially aware validation in resource estimation and highlights that machine learning models constrained to spatial coordinates behave as interpolators rather than true learners of geological variability. Recommendations are provided for future work incorporating geological information to enhance predictive robustness.

Mar 30, 2026

By A. Galibois, A. Dubé, H. Monette, J. L. Collins

"The start of mining operations often raises serious financial problems. In marginal cases promoters frequently demand financial aid from governments.In the past, the financial assistance has taken the form of gifts, procurement contracts, etc., but aid in such form has been severely criticized. A new formula has been developed to provide a more equitable distribution of the revenues accruing to the government and to private capital.The benefits to these two parties have been evaluated in an hypothetical case and compared in terms of internal rates of return on their investment, their shares of the undiscounted cash flows and their primary profits.The method based on the non-zero sum game theory provides a means for suggesting the lowest feasible annual production and the optimal sum contributed by the government in the form of outright gift, equity capital and convertible bonds. Other financial hypotheses can also be optimized by the computerized analysis."

Jan 1, 2014