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By E. V. Lilford

The South African Minerals Development Act (?the Act?) has been promulgated and will come into full force and effect once it is gazetted. Thereafter, all Old Order mineral rights will have to be converted into New Order mineral rights within a 5-year period, probably by the end of 2008. The conversion of rights will be achieved only with the demonstrated inclusion of empowerment groups in the conversion applications. In addition to the Act, the first draft of the proposed Royalty Bill (?the Bill?) was released during the week beginning 17 March 2003. Comments on the Bill?s contents had to be submitted before 30 April 2003. The contents were to be considered in terms of applicability and acceptability to the South African minerals industry, where after proposed comments and suggested amendments were to be submitted to the relevant State Treasury office. Specifically referring to the Bill, the general response from the industry is one of concern. Since any royalty is tantamount to a tax, the general feeling is that the current mining taxation rates are already internationally competitive and to increase these effective rates, notably at differing rates depending on commodity type, will have an adverse impact on the South African mining industry. A number of these impacts can be mitigated to some degree, depending on the flexibility of the State to address the major concerns.

Jan 1, 2003

By P. J. Lloyd

There are few data on the composition of discard coal in South Africa, and no overall view of the discards for the entire industry. As a result of work on coal qualities in South Africa, a database was established which enabled a good estimate to be made of the composition of the discard from every mine. The data are presented in the form of histograms of ash, volatile matter and fixed carbon content of the 43 million tons of material which were discarded in 1990. The results are discussed in terms of the closeness of the composition of much of the discard material to presently used power station coal. It is concluded that it is mainly developments in equipment, particularly fluidized bed boilers, which inhibit the wider use of discard coal. However, other factors must be noted, including the relatively high sulphur content of the discards, and the fact that even with the most careful storage the material ages and may become unusable after about 15 years.

Jan 1, 2000

INFACON conjures up many things for many people. For the fortunate few who have been actively involved with this event since its inception, it brings back memories of far places, stimulating debates and above all, the people who have over the years contributed to the outstanding success of the Congress and who have added to the wealth of knowledge on all aspects of ferroalloys. The International Ferroalloy Congress (INFACON) has been held every three years since 1974. INFACON X will be held in Cape Town in February 2004. Simple arithmetic shows that next year?s Congress should in fact be INFACON XI. Thus, one Congress was skipped. INFACON 74, as the name implies, was held in 1974, in Johannesburg, South Africa. The event was sponsored by the Ferro Alloy Producers? Association of South Africa (FAPA), the National Institute for Metallurgy (NIM - Mintek as it is known today) and the South African Institute of Mining and Metallurgy (SAIMM). You will see some of the same sponsors involved in INFACON X. Dr. Robbie Robinson, renowned academic and past president of the SAIMM, was the Chairman of the Organising Committee. The editor was Dr. Helen Glen. Anyone fortunate enough to possess a copy of the proceedings of this first Congress will agree that from a literary and technical perspective, it is still the benchmark for subsequent events. A unique feature of INFACON 74 was the use of rapporteurs (my first duty) to ensure that the discussions following the presentations were recorded (in direct speech) as accurately as possible. This involved time-consuming correspondence (can you imagine life before e-mail?) to all parts of the world between the author and the person posing the question, with the rapporteurs acting as go-betweens. It is understandable that the much-awaited proceedings only saw the light in 1975. The names recorded in the proceedings as the members of all six committees read like the who?s-who of the South African ferroalloy industry at the time: Dr. Peter Jochens, Mr. Harvey Reid, Mr. Piet Streicher, Prof David Howat, Mr. Sigurd Selmer-Olsen - to name but a few. The Congress was held in the new, very fashionable and upmarket Carlton Hotel in the CBD. In the Foreword of the proceedings, Dr. Robinson provides an insight into the event. Three hundred and thirty six delegates from twenty two countries attended the Congress, which was opened by the Honourable P.G.J. Koornhof, Minister of Mines. Again, the opening address makes fascinating reading. During the Congress an ad hoc committee was convened as the first International Committee on the Organisation of Ferroalloys Congresses, with representation from the main ferroalloy associations of the world. The following decisions were recorded: ? The Congress would be continued at three-yearly intervals under the name of INFACON ? Every third Congress would be held in South Africa ? NIM (Mintek) would provide the permanent secretariat. Six technical sessions were held, each preceded by a plenary address with a closing address by the session chairman. In all, thirty technical papers were presented. Prior to the closing address, a panel discussion on factors affecting the future of the ferrochromium industry provided stimulating debate in the form of a question-and-answer session. The hosting country for the next INFACON would be announced. Eventually, word got round that the next INFACON would be held in Japan. However, due to unforeseen circumstances, the event was cancelled ? thus no INFACON 77. INFACON 80 was subsequently held in Lausanne, Switzerland from 12th to 16th October 1980. The event was organised by IFPEO, Institut des Producteurs de Ferro-Alliages d?Europe Occidentale. The Congress was officially opened by the President of IPFEO, Mr. R. Björklund, who was also President of the Organising Committee. The technical sessions were held in the Palais de Beaulieu. The Congress was well attended by 400 participants from 28 countries as well as 100 accompanying ladies. A total of four plenary addresses and 18 technical papers were presented. As with the first event, an international panel discussion (questions and answers) preceded the closing address. In his closing address, Dr. Louw Alberts, Chairman of the International Committee on Ferroalloys and President of NIM, presented an insight into the factors affecting growth in the industry and where growth was likely to take place. Twelve exhibitors had stands at the Congress. Attendees could choose from four post-event tours to Belguim/France (SADACEM/Compagnie Universelle d?Acetylene et d?Electro-Metallurgie), France (CUAEM), Finland (Outokumpu Oy) and Norway (Elkem Fiskaa plant).

Jan 1, 2004

By J. M. Garcia

This paper highlights several management practices from the oil and gas industry to support the proposition that financial performance in the finite, non-renewable resource business relates more to upstream rather than downstream activities. Based on the analysis of nine oil and gas companies, this study supports a previous study involving fourteen mining companies that showed reserves growth is one of the main levers of value creation in mining. Interestingly, this study also finds that the oil and gas industry has been historically more profitable than mining. The reason, it is argued, is that oil and gas companies count on management practices that focus primarily on the upstream segments of the business, compared to the traditional downstream focus of mining. This paper delves into these ideas to conclude that what mining may need to improve its competitive advantage is a new organizational framework. Another conclusion is that the upstream management focus is vital not only for strategy formulation in the resource business, but also for policy formulation in economies based on the export of finite, non-renewable resources.

Jan 1, 2011

By Henri Fredriksson, Rami Saario, Mark Weatherseed, Juri Matinheikki

"The challenges facing the mining industry include complex ores and declining grades, together with increasing capital costs and environmental regulations. In addition, future commodity price uncertainty makes investment decisions difficult. Shorter plant lifecycles mean that new projects need shorter payback and increased net present value. With regard to solvent extraction, the introduction of an innovative modular plant design will help to address these issues. The first such modular offering is Outotec’s VSF®X modular solvent-extraction plant that uses prefabricated and transportable modules. Reuse and recyclability have underpinned the design concept. The greatest advantage of the VSF®X modular solvent-extraction plant is its relocation possibility. Additionally, it is suitable for various metals and plant capacity is adjustable through a scalable modular structure. After a dedicated plant lifecycle, the plant can be dismantled and relocated to a new site. This reuse ability offers major benefits for short-term plants, making them more feasible due to higher residual value. A net present value analysis is made for two examples, a conventional plant with no relocation possibility and a modular movable plant with extended plant life cycle, in order to evaluate the feasibility of modular plants. Results indicate that modular plant design could offer an economical solution with the additional advantage of improved overall sustainability through its life cycle. INTRODUCTION The challenges facing the mining industry include complex ores and declining grades, together with increasing capital costs and environmental regulations. In addition, future commodity price uncertainty makes investment decisions difficult. Shorter plant lifecycles mean that new projects need shorter payback and increased net present value (NPV) (Mudd, 2010; Norgate & Jahanshahi, 2010) . Awareness of sustainability issues is also rising and sustainability reporting is now a key element of many companies’ public and investor relations. Major companies are now putting more effort in this area to earn legitimacy for new projects (Mudd 2010)."

Jan 1, 2015

By M. A. Amarante

Beneficiation studies were conducted on a Portuguese feldspar ore, in order to obtain final products capable of being used in the ceramic industry. A simple scrubbing operation is enough to break the lumps in the feed. The ore deposit contains ca 35 x 106tonnesfrom which, by screening, three main products could be obtained. This paper focuses on the beneficiation of the 500/74 µm fraction, which constitutes about 27% of the ore, assaying 9.42% Al2O3,equivalent to approximately ca 46% feldspar, with a mean iron content of 0.29% iron oxides. Magnetic separation and froth flotation testwork was carried out, in order to decrease the iron contamination and increase the feldspar content. Magnetic separation alone decreased the iron content of the feed to values between 0.04 and 0.08% iron oxides with an average yield greater than 90%. Flotation with HF, provided a feldspar recovery of 45?46% with a concentrate assaying 17.6% Al2O3. The use of H2SO4, gave a recovery of 35?36% of feldspar concentrate, assaying 16.1% Al2O3. However, economic and environmental advantages of using sulphuric acid may compensate for the lower mass recovery. The iron content of0.12% iron oxides in these concentrates, could be reduced to 0.04?0.05%, by further magnetic separation.

Jan 1, 1997

Ongoing rockpass problems on mines within the South Africa region, prompted AngloGold Ashanti to embark on a risk assessment of major rockpasses. This commenced with the collection of relevant data to identify gaps in the available knowledge and identify existing problems. This was followed by an assessment of rockpass layouts to determine existing and potential interactions with other excavations. An initial risk assessment has been completed and the rockpasses have been ranked in terms of their risk profile. The lack of geological data and an easy and reliable method of surveying rockpasses have been identified as problem areas. Shortcoming is terms of rockpass management procedures have also been identified. Further work is required to quantify the risk in terms of probability of occurrence and consequences.

Jan 1, 2005

This is a sampling of the papers presented at the conference, the proceedings can be bought from the SAIMM The technique reported here involves measuring the air pressures generated within sealed boreholes located behind blasts. Results from twelve free face blasts in competent rock environments a represented. There were no instances of high pressure gas penetration, even at distances corresponding to less than one blast burden. Rapidly generated underpressures were measured in most holes, with the magnitudes of the peak pressures decreasing with distance behind the blasts. It has been proposed that the under pressures are the result of new volume created due to crack formation and overall rock mass dilation. The experimental evidence is consistent with this, including a correspondence of the onset times of the peak underpressures with the nominal firing times of the nearest blastholes. New post-blast cracks were observed when using borehole video cameras in the monitoring holes. A calculation of new volume produced within the monitoring holes is proposed as an indicator of damage. While the data exhibit considerable scatter, there is a power function dependence on scaled distance, which resembles that of typical vibration data. The data also lie within the normally quoted vibration regimes for rock damage and are consistent with measured extents of damage. It is concluded that this technique may provide an inexpensive and practical comparative measure of near-field rock damage due to blasting. It is further concluded that gas penetration is not a common phenomenon. Damage appears to be mainly attributable to the nearest blastholes and the control of charge mass in perimeter blastholes is emphasized for damage minimization.

Jan 1, 2000

By J. A. Bakken, G. Sævarsdóttir, H. Pálsson, M. Þ. Jónsson

The role of the electric arc in the consumption of electrodes in submerged arc furnaces has long been debated. The hostile environment in the furnace does not make direct measurement feasible, so simulation has been used to evaluate the arcs contribution to the erosion. Magnetofluiddynamic (MFD) electric arc simulations and a cathode / anode sub-model developed in order to provide boundary condition to the arc model have been used for this purpose. The cathode / anode sub-model provides current distributions and cathode / anode fall voltages for the arc and temperature distribution for the electrode surface, which is paramount to the erosion rate which in turn is calculated from the Clausius Clapeyron equation and the Hertz Knudsen formula for the vapour transport. In the case of high-current industrial AC arcs, arc currents are typically ~100 kA, phase voltages ~100 V and total furnace power ~10 ? 60 MW. The results show that although enormous amounts of material is evaporated, much of it recondenses on the surface. Furthermore the results show that the arc erosion increases strongly with the arc current. If a single arc is present its contribution to erosion is close to the actual total erosion in the furnace. Results from this analysis indicate that there are possibly more than one arc present in the crater, in which case less than 40% of the total erosion would be due to the arc, the rest is chemical erosion.

Jan 1, 2007

The AMIRA Code of Practice and Guidelines for Metal Accounting was developed in response to demand from a number of sponsor companies, including one major platinum producer. Since its publication in 2007, the Code has become widely accepted in the mining industry world-wide as a guide for best practice in metal accounting. With the changes in the structure of the platinum mining industry in South Africa over the last 10?15 years, in particular, the starting up of a number of small platinum producers who must have their concentrate smelted and the contained valuable metals refined by third parties, the need for metal accounting systems that are accurate and have an acceptable level of precision has become even more critical to the success of a platinum-producing operation. The current state of metal accounting in the industry is discussed, and possible areas for improved accounting and associated metallurgical efficiencies are identified.

Jan 1, 2013

By Garry M. Johnston, Matthew L. Sutcliffe, Nicholas J. Welham

"The predominant current processes for the treatment of oxidized copper–cobalt ores use a reductive acid leach to bring the desired metals into solution. However, the indiscriminate nature of acid leaching results in a solution, akin to a metal soup, containing not only the Cu and Co but also an extensive suite of other metals. These other metals, notably Fe, Mn, Al, Ca, Mg and Si, all have to be eliminated from solution before the copper and cobalt can be recovered. Generally precipitation processes are used, but these tend to result in significant losses of copper and/or more usually cobalt from solution, leading to reduced recoveries. The AmmLeach® process uses ammonia-based chemistry to selectively leach the target metals, leaving the rest behind in the leach residue. This approach eliminates any need to clean the solution of unwanted metals and the consequent metal losses. After solid–liquid separation, the leach solution is immediately subjected to separation and concentration of the copper and cobalt using solvent extraction and electrowinning. INTRODUCTION The Copper Belt extends through the northern part of Zambia and the southern province of Katanga in the Democratic Republic of Congo (DRC) and contains the richest and highest grade deposits of copper and cobalt remaining in the world. Whilst there are a number of mines that produce sulphide concentrates, using froth flotation, the largest deposits are those where near-surface sulphides have been weathered over time to form oxides. The oxides cannot be concentrated by conventional physical means to give high recoveries. Despite this, a number of dense medium separation plants have been installed and used to produce a higher grade concentrate which is typically exported (while the rejects, typically 2 to 3% Cu are stockpiled for treatment at a later date). These plants generally have low recoveries and can only be used on the dwindling supply of high grade materials. In exporting the concentrate, little value adding is undertaken within the country, thus greatly reducing the economic benefits to the country. Recent changes to the regulations in the DRC will effectively ban the export of low value ores, concentrates and intermediates in favour of high value metals. This will necessitate mines to install new processing circuits in order to comply with these regulations. The head grade of ores currently being treated in the DRC is slowly decreasing as the extremely high grade materials are being selectively mined out. In many cases, the removal of a small volume of high grade materials leaves a much larger volume of economically marginal ore behind. This is due to a desire for short-term profits overtaking long-term prosperity. The remaining ore, which in many cases is still of relatively high value by world class standards, is likely to be only treatable by low cost heap leaching. There are some initial trials of heap leaching within the DRC, but implementation at a large scale has yet to be adopted."

Jan 1, 2015

By G. van Aswegen

Seismic monitoring became commonplace in the deep South African gold mines in the early 1990’s. The discipline has, to a large extent, developed beyond the ‘research’ stage, and a ‘Guide to Seismic Monitoring in Mines’ has been accepted by the Department of Minerals and Energy1. Although ongoing research is a requirement for the achievement of all the objectives of seismic monitoring in mines, sufficient knowledge exists to apply seismic monitoring for routine seismic hazard assessment as an aid to risk management. The design and management of seismic monitoring systems can be tested against requirements spelled out in the ‘Guide’. Assuming the seismic monitoring system performs as per requirement, the best practice for routine seismic hazard assessment in mines includes • Long term seismic hazard assessment: through back analysis of seismic data and correlation with numerical modelling output, reasonable tests for planned mine designs are possible. • Medium term seismic hazard assessment: o Spatial analysis through contouring of seismic strain related parameters, with superimposed contours or event plots of stress related parameters allow the delineation of potential instabilities in space. o Quantitative and statistical analyses of seismicity in smaller spatial units (usually encompassing production sites) allow the comparative seismic hazard rating of different areas/sites so that rock engineering input and risk management can be optimised • Short term seismic hazard assessment relies mainly on time history analyses of particular seismicity parameters. The temporal patterns are controlled by a combination of temporal and parameter filters, the optimisation of which determines the success rate.

Jan 1, 2003

By D. J. Young

Alloys used at high temperature must resist both creep and corrosion. Design for corrosion resistance is based on the formation of a slow-growing, protective oxide scale by selective oxidation of an appropriate alloy component, usually chromium or aluminium. A successful scale will exclude other corrodents, notably carbon, which can otherwise cause extremely rapid corrosion at high temperatures. Selective oxidation of an alloy component necessarily lowers the concentration of that metal in the alloy subsurface region. Under thermal cycling conditions, mechanical damage to the scale leads to renewed oxide growth and accelerated alloy depletion. Eventually, a point is reached where diffusion of a corrodent into the alloy becomes competitive with the outward diffusion of alloy metal to repair the protective scale. Two examples of alloy failure by carbon attack are considered. In the steam cracking (pyrolysis) process, centrifugally cast tubes of heat-resisting alloy are exposed to a gas stream of hydrocarbon and steam, at a carbon activity of unity. Formation and repair of the surface chromia scale causes alloy depletion, Kirkendall void formation, and subsequent internal precipitation of chromium-rich carbides. Their formation makes chromia scale formation much more difficult, and generates internal stress. Eventually, the tubes fail by creep rupture. In other processes (e.g. steam reforming, heat treatment), synthesis gases are supersaturated with carbon at intermediate temperatures. Once the alloy's protective scale is breached, carbon attacks the depleted substrate. In the case of ferritic alloys, it forms a surface scale of Fe3C. As this scale thickens, the supersaturated carbon precipitates as graphite within its outer regions. The resulting volume expansion causes disintegration of the cementite in a process known as metal dusting. In the case of austenitic alloys, no metal carbide is formed. Instead, carbon dissolves in the depleted metal to diffuse inward and precipitate as graphite within the metal matrix. Again, volume expansion causes disintegration of the alloy, and metal dusting results. Dusting occurs at an extraordinarily rapid rate, and leads to failure by section loss or even penetration.

Jan 1, 2013

By I. A. Mutemererwa

This paper investigates the role of vertical integration between chrome ore mines and ferrochromium smelters in the location of ferrochromium production capacity in South Africa and Zimbabwe. Vertical integration is important in understanding the increasing competitive position of these two countries as observations show that an increasingly larger share of the global market has been coming from integrated producers. The paper argues that the increased vertical integration between mines and smelters in South Africa and Zimbabwe has led to a lower cost of chrome ore as an input compared with other producers. Underlying this hypothesis is the basic tenet that, more likely than not, production will take place where the costs are lowest. The paper concentrates on high carbon ferrochromium (HCFC) production in market economy countries (MEC). Using an ordinary least squares model, the study tests the relationship between low chrome ore costs and vertical integration shows a statistically significant relationship. These findings partially support the view that the control of sources of chrome ore is a major source of competitiveness. Keywords: competitiveness, ferrochromium (ferrochrome), ordinary least squares, dummy variables, vertical integration, southern Africa.

Jan 1, 2000

By P. Sklenicka

Remediation of the environmental (and social) disturbances caused by opencast brown coal mining in the past in north-west Bohemia isa priority for state environmental policy. In order to provide a concept for full restoration of land following disturbance by opencast mining, a special interdisciplinary project supported by a grant from the Czech Ministry of Environment was started in 2000. The initial stage of the project was intended to summarize and evaluate the findings and the works carried out in connection with various reclamation activities in the afflicted area over a period of more than 50 years. The main aims of the three-year project are to make use of the best available landscape environmental management knowledge in order to harmonize the ecological, aesthetic, productive and social functions of new valuable landscape, including the recovery of historical continuity and an understanding of ?landscape memory?. The basic landscape functions were assessed on two different scale levels. On a large scale, the relevant attributes were investigated over the whole area of the Sokolov brown coal basin (220 km2). The data and experience acquired were used to define large-scale guiding principles for the rehabilitation of a post-mining landscape. On a small scale, the basic characteristics and functions of the landscape were analysed in the Litov-Chlum model area (2 km2). The information derived from this analysis was used to formulate a small-scale approach for the rehabilitation of the model area and also to define general methodological principles. Keywords: rehabilitation, post-mining landscape, degraded landscape, non-productive priorities

Jan 1, 2004

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 S. E. Cook

This article uses the case of the Royal Bafokeng Nation to argue that royalties and dividends from mineral resources, if managed well, can provide direct benefits to the surrounding community even while the state collects its share of mining revenues through taxation. The key to this model is the effective management of the resource income flowing into community coffers. Where some of this income may fund urgent interventions in the community, a portion of the income can also be used to establish an intergenerational wealth fund to meet the needs of future generations. As a depleting resource, minerals like gold and platinum are not a sustainable source of income, and must be replaced over time by more regenerative income streams. These strategies and dynamics are manifest in the Royal Bafokeng Nation?s status as both community and quasi-municipality, a labour hosting and a labour sending community, a mine operator and a mine owner. The Royal Bafokeng Nation also owns one of South Africa?s largest community-based investment companies, which channels revenue derived from platinum deposits into a broad investment portfolio that in turn funds an aggressive social development program for 150,000 people living in twenty-nine rural villages.

Jan 1, 2013

By P. J. Bhonde, R. D. Angal, R. H. Tupkary

Manganese imparts numerous beneficial mechanical properties. Hence it finds extensive application in iron, steel and non-ferrous sector. Prevalently, it is incorporated in the form of master alloys i.e. 'ferromanganese'. In India, ferromanganese is mainly the inexpensive and paramount source of availability of manganese. Various conventional and non-conventional techniques of ferromanganese production have been adopted in past and present. However, these techniques have demerits viz. high refractory, energy consumption, losses of valuables in slag and fumes. Also geographical co-ordinates of the plant restricted the manufacturer to prefer an appropriate process. Accordingly, the industrially implemented methods had reliance on availability of infrastructure, energy, mineral resources, grade of raw material, outlay of labor, environmental compatibility of technique etc. In view of the liberalized economy and the gap scenario in the supply and demand of ferromanganese, the authors felt it indispensable to explicitly bridge up this vacuum by initially designing a simple energy conserving, eco-friendly, low capital investment technique for decarburization of ferromanganese. Measurement of the data involved studying the impact of rate governing parameters on the process kinetics. This laboratory scale investigation is expected to escalate the Mn/C quotient of high carbon ferromanganese. Key Words: ferromanganese, carbon, carbide, decarburization, rate, kinetic

Jan 1, 2007

By P. J. van der Walt

The paper1(hereinafter BG) by two respected sampling experts contains sound theory and logic that can?t be directly refuted. Nevertheless, a practitioner knows that there is a broader context in which the practice of sampling takes place. This broader context, being less well defined than the theory of correct sampling, receives correspondingly less exposure which this commentary??prompted by? BG?seeks to rectify. ?Correctness? of a sampler is the central concern of BG, where it is presented as a sharp ?black-and-white ?distinction. Accordingly, comments below are grouped under the following headings: ?Correctness in practice ?Without correctness, what can be done? ?The broader context.

Jan 1, 2002

By L. C. Stilwell

Input-output analysis is a major branch of quantitative economics, and is used to analyse the flow of goods and services between production sectors in a national economy. Its purpose is to determine the relative value-adding capacity of each sector. The model has also, in recent years, found increasing use in assessing the environmental and ecological impact of development projects. It has, however, never been applied to individual production facilities, such as large mines, which themselves have complex economic structures, through which there is a flow of goods and services. Conventional cost and accounting systems, as used on mines, treat production sectors as separate cost centres, and do not determine the inter-relationships between them. This can lead to incorrect conclusions on the relative value of sectors and their impact on the total economic performance of the facility. This paper explains the basic principles of input-output analysis, and presents an example of its application to a simplistic model of a mine, which is used in the absence of any real data. The paper concludes that, by forcing definition of the value adding function of each sector, input output analysis will facilitate control of inputs, or costs. This will result in optimal application of resources and exploitation of ore reserves. The authors realise the model needs to be tested on an operating mine, and hope this paper will result in an opportunity to do so. The authors wish to thank the anonymous referees for their valuable comments.

Jan 1, 2000