Search Documents

By E. V. Lilford

Valuators of mineral properties are faced with a range of valuation methodologies, the most important of which are grouped under the headings of the market approach, the cost approach and the income approach. The way in which value is defined and the detail of the different valuation methodologies is examined here. This paper aims at documenting the variety of valuation procedures and applying each method to a variety of gold projects and comparing the outcomes. Any decision to apply a valuation technique will depend principally on the stage to which the project has been developed. The valuation approach to a greenfield project will be substantially different from that applied to a well-drilled, extensively explored mineral property. Furthermore, a valuation exercise may produce different outcomes for the same gold project depending on which method is applied. In order to investigate the variability in valuation methods and to explore the outcomes of different approaches, a series of five gold projects was analysed. The projects differ in regard to levels of capital application, infrastructural setting, depth below surface, in situ grade, and the stage of development, and were valued using the different methods. The most critical aspect of any valuation is the capacity of the valuer to identify the salient issues and ensure that they are incorporated into the valuation. The danger of simply applying ?black box? solutions to valuation problems without a full understanding of the parameters and the areas of uncertainty is emphasized. The importance of the valuator?s experience, insights into best practice and the ability to recognize and submit to the requirements of compliance within the minerals industry is among the most important characteristics of a valuer.

Jan 1, 2005

By H. Hamma, R. Fehrmann, M. Gaune-Escard, G. Hatem, S. B. Rasmussen, K. M. Eriksen

The molten salts M2S2O7and MHSO4, the binary molten salt systems M2S2O7-MHSO4and the molten salt-gas systems M2S2O7-V2O5and M2S2O7-M2SO4-V2O5(M = Na, K, Rb, Cs) in O2, SO2and Ar atmospheres have been investigated by thermal methods like calorimetry, Differential Enthalpic Analysis (DEA) and Differential Scanning Calorimetry (DSC). Fundamental thermodynamic data like temperatures and molar heats of solid-solid transition and fusion, phase diagrams, heat capacities of solids and liquids, heat of mixing, and heats of complex formation have been obtained and are reviewed here. Also EPR spectroscopic evidence of V(IV) complexes and their structure are reported and the results are discussed in relation to the mechanism of SO2oxidation by V2O5based industrial catalysts. Keywords: Alkali pyrosulfates, alkali hydrogen sulfates, vanadium pentoxide, EPR spectroscopy, complex formation

Jan 1, 2004

By R. J. Fruehan

Slags have many useful functions in iron and steel making. In particular, slags are used to remove impurities such as sulphur, phosphorus and inclusions from the metal, and a large amount of research has been done in this area. Slags also insulate the metal thermally and form reactions with the atmosphere such as reoxidation and nitrogen pick-up. However, slags serve other more unique functions, several of which are reviewed in this paper. The role of slags in new iron smelting processes with regards to reduction of ore and gaseous desulphurization are discussed. In iron smelting processes, much of the reduction occurs by the reaction of carbon in the char and the metal suspended in the slag with iron oxide dissolved in slags. The slags also react with the gas resulting in sulphur removal from the process. The mechanisms of these reactions and pilot plant data for these processes are given in this paper. Slag formation within ferrous burden materials affects the cohesive zone and the performance of the blast furnace. Recent theoretical and experimental findings on this topic are presented. In the electric arc furnace, foamed slags are used to allow for higher power operation and productivity. Of particular interest, foaming in stainless steel production is more difficult than for normal steels. The foam index, or the ability of the slag to foam, for stainless steelmaking is similar to that for carbon steelmaking slags. The poor foaming is due to the lack of gas generation for the foam. Methods to increase foaming in stainless steelmaking are discussed.

Jan 1, 2004

By B. J. du Plessis

Automation of the conventional grinding circuits of Palabora Mining Company (PMC) required that adequate instrumentation and a control system had to be put in place, after which extensive testing had to be done to evaluate different grinding control strategies. The objective was either to optimize the particle size from the grinding circuit, or to increase milling circuit throughput while maintaining particle size at existing levels. Prior to automation of the process as described below the circuits were controlled manually. No on-line information on cyclone feed densities, cyclone feed flow or cyclone overflow particle size was available. This type of control relied heavily on interpretation of the process parameters by the operator and on his ability to make informed decisions on what the set points should be. An integral component of the automation process was the installation of a SCADA package (SysCad SDX) for implementing the on-line control strategy. A self-correcting model for prediction of cyclone particle size was developed and implemented on the SDX. The model is calibrated using values from the particle size analysers while they are operational. If the particle size analysers choke or fail for any reason, the model continues to provide a good estimate of the particle size. This technique ensures that a continuous particle size indication is available compared to the intermittent reading from the instrument. The continuous signal allows particle size to be used as a process variable for control purposes. A strategy was developed and implemented which allows for the production of a controlled grind size from the conventional milling circuit to the flotation circuit. The grinding control strategy allows for the control of particle size from the individual cyclone overflows. This strategy allows the operator of the process to increase or decrease production rate by specifying a coarser or finer grind size required for flotation.

Jan 1, 2001

By N. Simpson

Low carbon 11.5% chromium stainless steels are finding increasing use in industry as square or rectangular tubing material for the construction of structures by welding. During processing, resistively welded circular pipes are bent into square or rectangular shapes. During this process longitudinal cracks can sometimes develop atone of the inner corners of the section. An investigation has shown that the processing of round into square tubing with very sharp corners can cause excessive cold working at the inner corners of the squared tube. This, together with the high tensile residual stresses and a susceptible microstructure due to the presence of grain boundary carbides, can result in brittle cleavage cracking. Measures that can be used to reduce the problem are described.

Jan 1, 2003

By M. S. M. Aljuhani

In this paper, one of the human factors that affect productivity in an underground gold mine in Saudi Arabia was investigated and analysed for the purpose of improving productivity. The human factor that was investigated is labour utilization and labour productivity. In the selected mine, labourer?s performances were measured carefully. It was found that in this mine, workers spend only 65% of the shift time in a productive work, and they spend 35% of the shift time in non-productive activities. As a result, recommendations were presented to enhance productivity in the selected underground gold mine by enhancing labour utilization.

Jan 1, 2002

By F. Sawyerr

A bubble population balance model is proposed for the prediction of Sauter mean bubble diameters in mechanical flotation cells. In the model, the flotation cell is treated as two separate, statistically homogeneous zones?the impeller zone, and the bulk tank zone. Balance functions for the rates of bubble breakage, coalescence, recirculation and inlet-outlet events are proposed based on classical chemical engineering research in two- and three-phase fluid mixing systems. An initial simulation of the population balance model shows trends in bubble size distributions comparable to measured distributions in industrial mechanical flotation cells.

Jan 1, 1998

By D. deV. van der Spuy

A procedure for optimizing the secondary cooling zone of continuous casters is proposed and illustrated by a billet caster example. The procedure consists of quantifying deviations from the required conditions of the secondary cooling zone?as far as temperatures, metallurgical length and reheating are concerned?by means of a ?cost function?. The optimal spray settings are then found by minimizing the total ?cost?. The billet caster examples serve to emphasize the importance of specifying the required conditions in a consistent manner. Some envisaged practical limitations of this approach are discussed.

Jan 1, 1999

The practice of pumping gases which inhibit combustion for purposes of controlling or extinguishing mine fires is now universally accepted. The practice has been used many times in coal mines in India and the experiences are reviewed. The procedures relating to a membrane based nitrogen generator and to a combustion gases generator are described. The physical properties, practical requirements and economic implications of using different gases is briefly reviewed. Some aspects of the practice as related to mine fires in certain collieries in other countries are dealt with.

Jan 1, 2000

By D. H. Diering

The paper deals with the technologies required for opening up anew idealized ultra-deep level mine. First the overall philosophy of accessing ore at ultra depths is discussed. Then the individual technologies which will be required are explored. Finally a detailed overview on one of the key technologies, namely tunnel support, is given. Because this project is still in its infancy, few definitive answers are provided; instead each of the envisaged technologies are briefly discussed, with emphasis on those which require the element of speed for rapidly accessing the ore body.

Jan 1, 1997

By M. A. van Nierop

The Discrete Element Method (DEM) is a model that is used to simulate the motion of the media in a grinding mill. The sum of the energy that is lost in inter-media and media-wall collisions represents the power drawn by the mill. The fact that the DEM predicts the power drawn by grinding mills over a large range of diameters has been used to show the validity of the DEM. However, the power drawn by a mill is a function only of the sum of forces of the load on the shell liners. A more accurate and detailed validation of the DEM would be to measure these forces as a function of angular position as the liner moves under the load, and to compare these measurements with predictions generated using the DEM. An experimental mill has been developed to reproduce exactly what the 2-dimensional DEM simulates. The 0,55 m diameter mill has a length of 0,023 m, which is fractionally larger than the diameter of the media used in the mill. One of the lifters in the mill has been instrumented so that the forces on the lifter can be measured as the mill rotates. The DEM simulation will be used to predict these forces. This will give experimental evidence of the validity of the DEM for modelling load behaviour in rotating grinding mills.

Jan 1, 1999

By G. H. Lind

This paper discusses the traditional costing approach currently used in the underground coal mining industry. Activity Based Costing (ABC) is identified as being a potentially more effective manner in which to cost underground coal mining systems. With the use of a costing framework developed by the author incorporating new thinking to eliminate the shortcomings identified in the traditional costing approach, a comparison of two types of underground coal mining systems, viz. continuous miner and longwall, is conducted. It is found that under certain criteria, in all cases, irrespective of the way in which the systems are costed, the continuous miner system is currently the better investment. It is also observed that when a system is costed using ABC that better investment decisions result when compared to costing the same system using traditional costing techniques. It is further seen that traditional costing techniques tend to overestimate the total costs of a mining system. This paper shows one application of ABC that can be incorporated as a management tool.

Jan 1, 2001

By J. R. Cole-Baker

An independent technical audit by a consultant is part of the accountability process of publicly owned or publicly quoted companies when raising finance through share issues or loans or the sale of equity, and of banks or development funds when granting loans. Africa is undergoing a renaissance in investment in its mining industry. It is forecast that capital investment, in major mining projects in Africa, will be over US$ 4.4 billion, in the next few years. Most, if not all, of the capital to be raised will require an independent technical audit. The aim of this paper is to assist the management of mining companies seeking finance in appreciating the role of such technical audits. The reasons for such audits, especially to attract international investment, are listed. The role of the audit is explained in assessing the underlying robustness of the company as ?a going concern? and the viability of any ?expansion plans?. Its use is emphasised in establishing the underlying value of the company based on the mine life as supported by the mineral reserves. The independent consultant role is stressed as a representative of the parties in a finance deal who cannot, in practice, carry out their own detailed and specialized technical due diligence. The various components of a typical audit are examined with examples of critical matters which may require resolution. The definitions, which are used commonly in audits, in respect of competence and reserves and resources, as stated by various regulatory bodies, are compared.

Jan 1, 1998

Bacterial leaching represents an unusual problem in biochemical engineering, because the substrate for bacterial growth is not supplied directly, but is a product of another reaction, the leaching of mineral particles. Leaching arises from the bacterial oxidation of ferrous ions to ferric ions, which in turn oxidize the mineral. For the bacterial dissolution of pyrite, these reactions are: [ ] (Y represents a stoichiometric yield factor, and N represents the amount of bacteria.) Equations [1] and [2] represent a cyclic auto-catalytic system since more ferric ions are added to the system with an increase in the extent of leaching.

Jan 1, 2000

By H. L. Monro

Contribution by B. K. Martust I congratulate the author on his interesting paper. In my view, the establishment of the level at which South African gold output is at some kind of optimum is an interesting though somewhat academic exercise. Contribution by D. M. Hawkins* The thesis of the paper is a very interesting one, but, before it is used as the basis of any firm proposals to restructure the mining industry, which changes may be irreversible, one should be very sure that the basis of the calculations is sound. Contribution by P. J. Niewenhuizen* The hypothesis advanced by Mr Monro that the demonetization of gold in August 1971 introduced a major new policy variable, namely the supply-pricejdemand-price relationships, into the decision making process touches on a matter that has never really been given serious thought by the industry. Contribution by B. G. Kingsman* As a co-worker on the development of an econometric model for supply and demand in the world gold market with Mr H. L. Monro, it would perhaps be useful for me to make some comments on the various points raised in the discussions on his paper.

Jan 1, 1984

By M. Vandewalle

What separates the support of mining openings from the support of similar civil engineering structures is the fact that mine openings have to survive large deformations as a result of changing stress conditions induced by progressive mining. Steel fibres impart to concrete and shotcrete a high degree of ductility which not only allows the shotcrete and concrete linings to absorb important rock movements but also to increase its bearing capacity by a redistribution of the loads. A range of applications will be discussed technically and economically.

Jan 1, 1998

By L. R. C. Cairncross

In this study, the general case of semi-batch precipitation of nickel hydroxide, Ni(OH)2, is modelled. In practical terms, this precipitation may occur at high ionic strengths, and therefore the model for solution chemistry requires a thermodynamic model that is applicable for these non-ideal systems. The activity coefficient model used is the ELEC-NRTL. The simulation of the solution chemistry is performed using AspenPlusTM, which is a steady-state process simulation program. This allows for rigorous evaluation of the solution speciation, and hence the degree of supersaturation which dictates the precipitation kinetics. The solution chemistry provides the basis for predicting the formation of solids. The model consists of a solution chemistry part and a solids formation part. The inputs to the model include the initial concentrations of the streams entering the reactor, kinetic parameters for the precipitation processes, and a particle size distribution obtained from experiments. The solids formation part of the model employs the method of moments for the evaluation of the population balance. The population balance accounts for total particle number, and the formation and increase in size of particles across the entire particle size range. This balance requires kinetic parameters for the processes of nucleation, growth and agglomeration. Using optimization routines inherent in AspenPlusTM, parameters for the rate of nucleation, growth and agglomeration may be extracted from experimental particle size distributions. These are then used in the model to extrapolate to other conditions. Once an understanding of the kinetics of the precipitation processes is gained, the model provides a predictive tool for optimization of these kinetics, in order to increase the overall particle size and therefore improve solid-liquid separation. The work is deemed to be significant as it sheds some light on solids formation processes involved in precipitation?including nucleation, growth and aggregation?and develops a predictive modelling tool applicable to solutions of high ionic strength. We argue that this dewatering of suspensions is affected significantly by particle size distribution and surface properties of the solids formed by precipitation. This modelling tool should facilitate the design of solids formation processes where downstream dewatering is enhanced.

Jan 1, 1997

By J. W. Neale

Mintek and BacTech have joined forces to provide the metallurgical industry with bacterial-oxidation processes for the treatment of sulphide ores. The processes are aimed at both refractory gold-bearing and base-metal concentrates. Previously, BacTech had commercially implemented the refractory gold process at the Youanmi Gold Mine in Western Australia. More recently, the process has been incorporated in the Sulphide Treatment Plant at the Beaconsfield Gold Mine in Tasmania, Australia. In addition, Mintek and BacTech have recently signed an agreement with the Laizhou Gold Metallurgy Plant in China?s Shandong Province, which will see the third commercial realization of the technology for refractory gold. Development of the base-metal technology is the subject of several papers in the proceedings of this colloquium. The implementation of the refractory gold technology at Beaconsfield is discussed in detail. Some important aspects that are covered include: ?Test work, and the choice of bacterial culture ?Process design choices, and the advantages of the Mintek-BacTech process ?Inoculum build-up ?Plant commissioning ?Plant performance. Besides the Laizhou project, Mintek and BacTech are currently investigating several other commercial prospects for the technology. These include the use of the technology for a gold-copper deposit, where the production of both gold and copper is envisaged.

Jan 1, 2000

By F. T. Cawood

The new South African Mineral Policy has major implications on the way mineral rent will be collected and shared between the stakeholders in future. Although the policy does not supply details on how this will be done, drastic departures from practices under the previous dispensation require a new approach. For example, there introduction of the ?right to mine? principle implies that the repealed lease consideration concept will be expanded to all minerals. The new policy also makes provision for predetermined standard terms and conditions for all prospecting and mining permissions. It also states that, regardless of whether the mineral rights are state or privately-owned, all prospecting fees and mineral royalties will be determined by state officials after consultation with the registered holder of the mineral rights. This paper proposes a standard mineral royalty formula that complies with the principles mentioned in the White Paper and has been shown to be internationally competitive.

Jan 1, 2001

Direct reduced iron (DRI), produced by the reaction between iron ore and reducing gasses, is used as a source of low-residual iron, in addition to ferrous scrap and pig iron, in the production of steel mainly through the electric arc furnace (EAF) route of steelmaking. The main DRI technologies in use are those of Midrex and Hyl, but in recent years a myriad of newer processes emerged based on variations in feedstock, reducing agent and fuel sources. Since the beginning of the nineties, DRI has increasingly emerged as a cheaper, low-residual iron feedstock for EAFs, which have traditionally relied almost entirely on ferrous scrap feed. The main stimulus behind the interest in DRI has been the increasing popularity of the EAF and the ?mini-mill? set-up as the favoured steelmaking option compared to the traditional and much less flexible blast furnace/ basic oxygen converter. This, however, has been creating a problem with regard to availability of low-residual scrap, resulting in upward pressure on high quality scrap prices and leaving DRI, traditionally the ?expensive alternative?, as a much more competitive consideration. The second main determinant has been the increasing production efficiency of existing steel plants which, in the light of improvements such as continuous casting and near net shape casting, has been constraining the supply of low-residual domestic scrap, traditionally the prime source of EAF feed. The explosion of current and proposed DRI projects has been accentuating the mounting interest of global role-players in assuring the availability of reliable sources of low-residual iron units for the future, especially in cases where definitive competitive advantages exist with regard to proximity to primary sources of iron ore and fuel (gas or coal).

Jan 1, 1999