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By Pengfu Tan

Xstrata Copper at Mount Isa in Australia has operated one copper Isasmelt furnace and four P-S converters. The phenomena of foaming occur in above 10% of converter operations. A thermodynamic model of copper P-S converter and a viscosity model of converter slag have been developed to simulate the slag blow and copper blow. The model predicts the chemistry and viscosity of copper skims during copper blow. The effects of oxygen potential, charge of dirty materials, slag carry-over, under-blowing, over-blowing, and temperature on the foaming and viscosity of copper skims have been discussed. Some improvements of the industrial operations have been presented.

Jan 1, 2006

By Maísa Villela Freire

Refratários MgO-C encontram-se entre os mais adequados para o uso na linha de escória de panelas para aço líquido. Seu comportamento, nesta aplicação, depende de fatores termodinâmicos e cinéticos. Métodos de cálculo termodinâmico para avaliar o potencial de degradação de refratários MgO-C por escórias e pela atmosfera são revistos brevemente. Tais métodos envolvem, em geral, premissas importantes sobre a quantidade de materiais envolvidos. Para avaliar um método mais simples, foram escolhidos dois tijolos MgO-C e duas escórias típicas do processo da CSN. Estes tijolos e escórias foram caraterizados, neste trabalho. O método apresentado consiste na realização de cálculos de equilíbrio em que a principal variável é a fração de escória em uma mistura hipotética com o refratário. Para a composição do refratário foram empregadas (a) composição média e (b) composição da matriz do tijolo. Os resultados indicam que é possível realizar previsões iniciais quanto à reatividade do refratário e determinada escória de forma simples. Os cálculos, evidentemente, não substituem testes cinéticos e testes em escala industrial, em vista da complexidade dos sistemas em questão.

Aug 17, 2017

By Robert S. Sanford, Harold C. Pierce

"At one time the Alaskan Eskimo lived in many small settlements scattered along the Arctic coast. These settlements extended as far south as Bristol Bay and several miles inland on the large rivers. When the white man established trading posts, schools, hospitals, and missions, these people gradually congregated around them in a few large villages. The natural fuel supply near many of the large villages along the Arctic coast became exhausted as a result of the abnormally large influx of people from small outlying settlements.The population of Barrow, Alaska, according to the 1940 census, is 363 persons, but since that time it has increased considerably, and later estimates place the present population between 400 and 500 persons. With the exception of 25 white persons, the entire population is comprised of Eskimos.The government maintains a school, hospital, radio station, and weather station at Barrow. In addition to the government, installations, there is a church, a privately owned trading post, and cooperative store owned by the Eskimos.For many years the Barrow Eskimos depended on driftwood and petroleum residue from Cape Simpson for their fuel supply. This fuel provided not only warmth for the Eskimo during the long cold winters but also heat for melting ice, the only source of 'water during .the winter. In recent years the sources of petroleum residue and driftwood have not been adequate to meet the demands for fuel During the winter of 1942-43 and again in 1943-44, Barrow experienced an acute shortage of fuel.The fuel problem at Barrow was brought to the attention of Governor Ernest E. Gruening, who was instrumental in getting a Bureau of Mines engineer4/ to investigate reported coal occurrences in the vicinity. Coal deposits along the Meade River and at Peard Bay were examined during the spring and fall of 1943. The Alaska Native Service shipped in mining equipment in September 1943 and commenced stripping an open-pit mine on the Meade River in June 1944. In conjunction with this work, an engineer5/ of the Bureau explored by churn drilling to determine the tonnage of- coal in the vicinity of the mine. In addition to this work, the Bureau of mines examined coal deposits in Peard Bay area and along the Kuk River south of Wainwright."

Nov 1, 1924

By G. M. Cresswell

The 2 360 t/h two module Phola coal preparation plant represents anew era of large plant in the Witbank coalfield designed to extend its life to 2020 and beyond. The plant uses the optimum processing model for Witbank coals, receiving a feed coal size of -50 mm, wet screening it into coarse and small coal fractions 50 x12 and 12 x0.63 mm before processing them in parallel through two primary DM cyclone sections, in order to make a 27.5 MJ/kg export floats product. The sinks are processed through a common high density DM cyclone section to produce a 21.5?23 MJ/kg thermal coal middlings product. The plant design incorporates the largest size DMS equipment used to date in South African coal preparation plants, i.e. 1 150 mm large diameter pump fed DM cyclones and 4.2 m width banana screens. The fine coal is conventionally processed by spirals, whereas the raw coal slimes are filtered using automated plate and frame filter presses and added to either the middlings or discards depending on its quality. The paper describes the database, innovative design concepts, construction, and commissioning.

Jan 1, 2010

By Peter Bourke, Marc van Olst, Seppo Ronkainen, Natalie Brown

"Since the early days of flotation, process technicians have known that the speed at which the froth is recovered over the lip of the cell has a very direct and consistent influence on the grade and recovery of the circuit. No plant would deny that, even to this day, one of the most important aspects of a process technician’s job is ensuring that the froth is moving at a desired and controlled speed over the lip. Unfortunately, process technicians cannot watch the froth throughout the entire shift, as there are always a lot of other tasks to do.A considerable amount of work has thus been done to develop a “system” that automatically measures the speed of the froth. This measurement would then be used in simple controllers to emulate the steps taken by the process technician in correcting deviations of the froth speed from its desired level. Many of the earlier attempts to measure speed were ineffective, as they were unable to cope with turbulence on the froth surface. The FrothMasterTM instrument makes use of machine vision technologies to measure the speed of the froth over the lip of a cell at a very high sampling rate. This instrument produces an extremely reliable and accurate measurement of the froth speed (as well as other parameters such as bubble size and froth stability). As we will show, the effectiveness of the speed measurement in controlling the performance of the plant is a testimony to its reliability.Three FrothMasterTM units have recently been installed on the Cadia Hills Gold Mine in New South Wales (Australia). The objectives of this installation were:To control the mass-recovery of two Tank Cells in series on the same level where differences in the hydrostatic head between the two cells result in the cells pulling inconsistently with respect to each other.Control of the concentrate grade (%Copper) from the first rougher.Reduction in the frother consumption in the rougher circuit by monitoring the froth speed.A simple controller was designed to react to disturbances in the same way that human operators react. This was done after consultation with the metallurgists and the process technicians at Cadia. The controller had two functions:Stabilisation: The stabilising controller made use of three manipulated variables (level, frother addition rate and aeration rate) to control the froth speed to a setpoint.Optimisation: The optimising controller adjusted the froth speed setpoint based on deviations of the grade (measured in real-time with an OSA) from a setpoint. The plant metallurgist adjusted the grade setpoint based on information about the ore."

Jan 1, 2001

By G. Goellner

The thick alluvial sand and gravel deposits along the base of the San Gabriel mountain range in Southern California area have been mined for construction aggregates for over 100 years. Encroachment of high-density urban populations in this area has led to concentrated mining in a handful of open pit mines with single production faces reaching up to 55 m (175 ft) in height, and long transportation distances from the pit to the processing plant. Aggregate producers have responded to these challenges by developing innovative mining systems which enable low-cost, full-face mining of the alluvial material, and low cost delivery of this material to the plant.

Jan 1, 2004

By Bernard M. Larsen, Clyde F. Williams, Edward P. Barrett

"Introduction.The Bureau of Mines at its Northwest Experiment station has been studying the production of sponge iron for the past four years, and during 1923 progress advanced to the point industrial applications can be safely considered. A furnace was operated commercially at silver City, Utah, producing about three tons of sponge iron daily.The Bureau was led to undertake this work by the interest in the use of sponge iron for copper precipitation and for conversion to iron and steel in the electric furnace.If a piece of iron oxide is completely reduced at such a low temperature (850 to 900° C) that no sintering or fusion takes place, then the piece of metallic iron formed has the same size and shape as the original piece of oxide on account of the removal of oxygen, the structure is finely porous, exposing a large surface of iron, and the apparent density is less than that of the original piece of iron oxide. This material is called ""sponge iron"". Chemically, it is a very reactive material."

Nov 1, 1924

By P. Massi

"Wholly owned by the Coniagas Mining Company, the oldest continuously listed mining company on the Toronto Stock Exchange, St. Andrew Goldfields is located on Hwy. 101 approximately 30 miles east of downtown Timmins, Ontario. Geographically situated on the Porcupine-Destor Fault, the mine and mill in Stock township is positioned in the heart of Northeastern Ontario's goldmining communities.In July 1988, a 600 ft. shaft, hoist, and compressors were already in place when construction started on a 500 T.P.D. capacity C.I.P. mill and crushing plant.By June 15, 1989 the mill was commissioned and attained the design capacity by August of that same year. Since then, changes to the circuit have increased throughput to 900 T.P.D. from two significantly different ore sources.Meeting the Ministry of the Environment's guidelines is an ongoing commitment utilizing the Inca S02 process in line between the tailings pond and secondary polishing pond.INTRODUCTIONExploration on what is now known as St Andrew Goldfields' Stock Township Mine was carried out ln the early l960 1 s by Hollinger Mines Ltd. The property was acquired by Quebec Sturgeon River Mines 1n 1973 and the main shaft was started ill 1979.When St Andrew Goldfields was incorporated 1n 1983, exploration and development commenced to identify the ore body. The company decided 1n 1987 to bring the Stock township property into production after an extensive feasibility study and testwork at Lakefield Research in Toronto. Leslie Engineering was contracted to design, engineer and procure al 1. equipment from the coarse ore bin to the tailings distribution system and backfill plant"

Jan 1, 1992

By François Robichaud

"The Laronde mill has been in operation since 1988. Actual milling rate ranges from 7,000 to 8,500 mtpd. Laronde uses SAG/ball mill grinding followed by copper and zinc flotation circuits. A cyanidation/Merrill-Crowe process recovers the remaining gold and silver in the flotation tails.In 1999, the carbon in pulp circuit was replaced by a Merrill-Crowe circuit in order to cope with a much higher ratio of silver/gold associated with the discovery of the Penna shaft. Marine type diatomaceous earth was used as filter aid in both clarifier pressure leaf filters and recessed pressure filter presses from 1999 to 2005. In 2005, this filter aid was gradually replaced by alpha-cellulose after several laboratory and plant filtration trials. The selected cellulose is considered to be much less sensitive to parameters such as pH and reagent concentration and have increased clarifier and filter press filtration performance. Also, since cellulose is exothermic, replacing diatomaceous earth with cellulose as filter aid in the filter presses has increased calcining and oxidation rates in the calcining ovens since cellulose is exothermic. Finally, better calcining conditions have resulted in energy and reagent savings at the arc furnaces.This paper describes how the filter aid replacement has contributed to increasing productivity and Net Smelter Return of the refinery while reducing worker’s hazards and operating cost.INTRODUCTIONAll Merrill-Crowe circuits in the world are operated with filter aids. For years, the market for precoat filter aid has been dominated by mineral filter aids such as diatomite and perlite. Flowsheet and equipment selection at the Laronde refinery were performed in the late nineties. At that time, some key parameters of the design criteria had clearly identified marine type diatomaceous earth (DE) as the most successful filter aid. Parameters such as reagent cost and availability, clarity of the filtrate solution and good historical filtration performance in other concentrators had designated DE as the best suited filter aid. Pregnant solution processed in the refinery from its start-up through 2001 was fairly stable in flow rate and reasonable in terms of impurity content (cationic and anionic compounds)."

Jan 1, 2007

By S Reid, W Chen, T J. Donohue, A Katterfeld

The use of discrete element modelling (DEM) is widespread in the materials handling field, and is used for many applications. One of the important limitations in using DEM is the number of particles that can be modelled, with this limitation often resulting in increasing the minimum particle size in the simulation. This restriction on minimum particle size is usually accommodated in the calibration process where the parameters in the simulation are chosen in such a way as to reflect the presence of smaller sized particles, and in typical applications such as transfer chutes this is standard practice. However, in the application of vibrating screens the inclusion of the ‘fines’ is critically important due to their influence on the screening efficiency. In reality, the presence of fines reduces the screening efficiency for a number of reasons; however, the main mechanism that will be addressed in this study is the effect of adhering fines. This is where the fines adhere to the larger particles and are carried over into the lump stream. The approach for this study will be to firstly consider the relatively simple mechanical sieving process used in the determination of particle size distribution, and then this will be expanded to consider the application of vibrating screens.CITATION:Donohue, T J, Chen, W, Katterfeld, A and Reid, S, 2017. Addressing the challenges associated with the modelling of iron ore in vibrating screens, in Proceedings Iron Ore 2017, pp 155–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By Vincent Jue

In December 2009, the Italian High Speed Rail Network AV began running over the full 1000 km system length from Turin, at the foothills of the Alps to Salerno, on the seacoast south of the volcano Mt. Vesuvius. It runs through Alpine rivers, highly seismic active zones, mountains, river plains, and through some of the most densely populated areas in Europe as well as some of its most expensive real estate. The Italian High Speed Network?s technical/economic constraints and its regulatory/socio-environmental concerns well may mirror similar obstacles set to confront the nascent California High Speed Rail Program. The two types of constraints must be dealt with together to reach the best construction solution. It is estimated that more than 20% of Italian High Speed Rail Network costs were spent on ground engineering including over 150 km of tunnels, 200 km of viaducts and bridges and 650 km of embankments and trenches. However, it also is estimated that 25% of costs were spent on social and environmental integration of the new rail lines including over 6 square miles of green offsets, 160 km of anti-noise walls, and 300 agreements for socio-environmental work. This paper will look at four examples of innovative ground engineering solutions, each with its own intricate set of constraints: ? Foundation system for viaducts across the ?Po? and ?Ticino? rivers. ? Soil consolidation under railway embankments ? Requirement of short tunnels for physical and environmental reasons ? Construction of railway stations in a confined right of way

Jan 1, 2010

By P. Latostenmaa, O. Forsén, M. Lundström, J. Aromaa

The history of electrolytic copper production in Finland is closely connected with the industrialization of Finland and events of the Second World War. Production of cathode copper by electrowinning from the processing of Outokumpu ore started in 1913 based on the Hybinette nickel process, however due to the poor performance of this process, the plant was closed in 1929. Outokumpu commenced copper smelting at Imatra in eastern Finland in 1936 producing blister copper for refining outside the country. Due to the threating military situation, a new electrolytic copper refinery was built in 1941 at Pori in western Finland to refine the anodes. This was the first electrolytic copper refinery in Finland. It was built with 108 cells having a capacity of 12,000 tonnes/y. In addition, the smelter was relocated to nearby Harjavalta in 1944–1945. To fulfill the war reparations included in the peace treaty with the Soviet Union, a doubling of the smelter capacity was realised, with the Pori refinery capacity increasing to 20,000 tonnes/y in 1946 by adding additional cells. The cornerstone of Finnish metallurgical technology — Outokumpu flash smelting — was invented with the new technology commissioned at Harjavalta in 1949 replacing the electric furnace and providing a further increase in copper output with subsequent enlargement of the refinery. By 1963, the plant consisted of 380 cells with a capacity of 48,000 tonnes/y of cathode copper. The Pori electrolytic copper refinery has operated continuously since 1941. Commencing in 2004 the Pori refinery has been part of the Boliden group of Sweden. The most recent plant upgrade was in 2007 with the installation of permanent cathode technology. In 2017, the production of the Pori refinery was 133,000 tonnes of copper cathode, 2,300 tonnes of nickel sulphate, along with 66 tonnes of silver and 4.6 tonnes of gold. This paper describes these outstanding achievements. INTRODUCTION In 1809 the Kingdom of Sweden was defeated by the Russian Empire in the Finnish War, and Finland was annexed by the Russian Empire as the autonomous Grand Duchy of Finland. Finland’s commercial and industrial interests were developed to serve the Empire’s needs. Finland had raw materials, but at the start of the 20th century Finnish industry was based on the use of wood as raw material and agricultural products. The mining industry was only a few percent of the country’s industrial production.

Jan 1, 2019

By Ed Sullivan

"Australia is one of the richest continents when it comes to mineral extraction, ranging from exotic projects like the Olympic Dam — a copper, silver and uranium mine believed to have the world’s largest uranium resource — to the extensive iron ore, nickel, coal and gemstone formations that provide many of the country’s most rewarding exports.Among the challenges to succeed in this industry is the ability to provide efficient “pitto- port” infrastructure performance, which essentially means ensuring that minerals move seamlessly from the point of extraction to the facilities that can then move them to international market destinations.To provide such efficiencies, avoid human error and facilitate automated mining functions, producers are increasingly turning to fiber optic cable suppliers for “end-to-end” communications and control solutions. Many such solutions include ruggedized cable and connectors that ensure the survival of fiber-based DCS/PLC automation/ control architectures for various types of mining operations, even in the harshest environments.Integrating the solutionAs industrial Ethernet and fiber optic cable emerges as the medium of choice in many industrial arenas, communication and control integration using the most appropriate products for a specific application is increasingly important.“This whole ‘pit-to-port’ performance concept is focused on control and process automation,” says Boyd McDonald, Founder and Managing Director at Datalek Systems & Electrical, Rockhampton Area, Australia. “It also means bringing reliability to networks and providing the needed bandwidth. An appropriate plug-and-play solution is also important because it takes human error out of the equation.”Datalek Systems & Electrical, is responsible for the design, installation and maintenance of numerous fiber optic communications systems including those that involve automation, security, access control an CCTV systems for open-pit and underground mining operations as well as LNG and coal seam gas facilities."

Jan 1, 2015

By Lori Kormos, Jhonny Carrión De la Cruz, Dominic Fragomeni, Elizabeth Whiteman, Jorge Oliveira

"Process diagnosis, flowsheet design and optimisation are most effectively and efficiently achieved through the use of metallurgical testwork combined with more modern quantitative mineralogical techniques. Integration of the mineralogical data in testwork programs provides a resolution that cannot be obtained from assays alone and can direct the flow of work to result in optimized conditions more quickly than would otherwise be possible. At Xstrata Process Support (XPS), QEMSCAN (Quantitative Evaluation of Materials by Scanning Electron Microscope) and EPMA (Electron Probe Micro Analyser) information can be employed to diagnose specific issues in a plant or lab scale test and are routinely combined with other metallurgical data sets to benchmark performance, design and optimise flowsheets. Representative sampling protocols for ore bodies or test products, the use of geometallurgical unit classification and high confidence metallurgical test programs are key components of the strategy. Two case studies from Xstrata Zinc’s Antamina Mine and Concentrator in Perú, and Xstrata Nickel’s Nickel Rim South Mine in Sudbury are described to show how the use of quantitative mineralogy were used to diagnose a plant issue and how the data can be integrated into metallurgical programs to assist mineral processing engineers to design and optimise flowsheets.INTRODUCTIONOver the past decade, there has been a shift away from metallurgical testing that employs only chemical assays to quantify performance; the use of empirical observation in order to optimise a flowsheet; and the extraction of bulk samples for testing or piloting. The integration of geological information into the planning and execution of testwork programs including the use of quantitative mineralogy has improved the overall quality and predictability of metallurgical programs. At the same time, improvements to metallurgical testwork protocols such as rigorous statistical assessment of results, the use of factorially designed experimental strategies (DOE), and replicate flotation with appropriate quality controls, has improved the confidence level in these results.Process diagnosis, which utilizes quantitative mineralogy, can clearly define the root cause of the metallurgical issue. Whether used on its own to diagnose an issue or in combination with other metallurgical testwork, the use of mineralogical data has become the standard in the mining industry."

Jan 1, 2010

By P Paredes, T Leaño, D Gajardo, C Tramón, S Peñaloza

The definition of an ore handling system and its consequent layout design is of crucial importance in cave mining projects. It not only represents the main driver in the production capacity and reliability of the mining system, it is also a fundamental variable in the footprint’s development time and cost.In recent decades, load-haul-dump (LHD) tramming distance optimisation through the allocation of several orepasses inside the footprint has been the most common practice in ore handling system layout definition at Codelco’s operations. Today, the improvement of existing technology, such as higher-capacity LHDs and jaw-gyratory crushers, and intensive preconditioning techniques to improve fragmentation allow the conceptualisation of simple and highly productive ore handling system layouts for wide caving areas that avoid the complexity and high cost of developing numerous orepasses inside the footprint.The initial macroblocks of the Chuquicamata underground mine project (PMCHS) consider an ore handling system layout in which LHDs dump into orepasses located inside the footprint area. The ore is then transferred into crusher chambers located below the production level, where it is crushed by jaw crushers and then conveyed to surface. In an effort to reduce development time and costs, a new ore handling system layout for the PMCHS experimental macroblocks was engineered using improved technologies and techniques in a simpler mining system. This paper compares the new ore handling system layout for the project’s experimental macroblocks with the traditional LHD-orepass layout in terms of production capacity, reliability, development time and cost.CITATION:Paredes, P, Gajardo, D, Leaño, T, Peñaloza, S and Tramón, C, 2016. Simplifying the ore handling system through the use of current technology at Chuquicamata underground mine project, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 571–584 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By P. Zhang

This paper gives a review of promising technologies for phosphate processing, and covers flotation, analysis and process control, as well as tailings treatment and utilization. Air bubbles of less than a µm in size, combined with relatively large bubbles, have been demonstrated, both in the lab and on a pilot scale, to improve flotation dramatically, by reducing reagent use while improving product grade. Innovative use of polymers has allowed rapid dewatering of fine tailings with a final product that does not segregate. The first online laser-induced breakdown spectroscopy (LIBS) analyzer was created, allowing rapid analysis of wet samples using the laser technology. Many large commercial projects are successfully pursuing the utilization of phosphogypsum.

Feb 1, 2012

By AIME

IN the parlance of Hollywood, it was a super-colossal meeting. In the more restrained language of engineers, the Institute's 75th Anniversary Celebration attracted the largest crowd ever; was the longest Annual Meeting ever held, occupying a full week; had more important papers, more important people, more of an international flavor, and more glamour than ever before. And in the minds of those who came to the big city from the wide open spaces, one other record should be mentioned: for those not on an expense account, it was the most expensive affair ever staged by the Institute! To state the attendance down to the last digit for a meeting such as this is impossible. The total names registered on cards, plus those who attended the Annual Banquet but were not otherwise registered, came to 3149. But a few were registered twice, and probably a still larger few did not register at all, but just dropped in for a session or two in which they were interested. It would appear that 3200 would be about as close an estimate of attendance as could be made, and that is some 300 more than came to the biggest Annual Meeting of the past-in 1944. A considerable number of members brought their wives, but most were delegates at large.

Jan 1, 1947

By J. C. Taylor

The Rhodax inertial cone grinder, designed by France?s FCB Group Fives, is the result of three years, theoretical and mechanical research in the field of compression grinding by the research staff of FCB?s CRM minerals research centre. A number of potential uses have been assessed and will be discussed in the paper. The crusher is an inertial grinder that works on the pressurized bed fragmentation principle. The fragmentation force is caused by the rotation of unbalanced masses rather than by an eccentric mass, as is the case in a conventional crusher. This makes it possible to achieve very high reduction ratios. By controlling the speed of rotation of the unbalanced masses, the grinding force can be modified, thus changing the product size distribution. The paper describes the machine layout, operating principles, control parameters and will briefly describe the results obtained on reef, waste and ROM reject pebbles. Some comparisons are made with conventional crushing.

Jan 1, 1998

By Chas. F. Jackson

During the past year a special study was made of shrinkage stoping A large number of mines in the United States and Canada which employ this method were visited and their practices were discussed with the operating staffs. The operating data obtained are appended hereto. Data were also abstracted from the literature on other mines and are combined in tables with data personally secured by the author. References are made to these published articles, some of which have appeared as information circulars of the United States Bureau of Mines, in the Transactions of the American Institute of Mining and Metallurgical Engineers, and the Engineering and Mining Journal. Several of the mines referred to which have not been described in individual papers will be described in detail in information circulars to be issued by the bureau. Eventually it is planned to combine and condense the information in these circulars and present the data in bulletin form.

Jan 1, 1930

South Africa remains the largest global producer of gold, accounting for 11.3 per cent of total world mine production, which amounted to 2520.2 t in 2005. The benefits and disadvantages associated with hedging practices in general, and among South African gold producers is examined. The wide variety and unique nature of risks faced by the mining industries provide a strong case for hedging. Only the principles of hedging, such as selling ounces of gold in the ground at a pre-agreed price for delivery at a future date as a cost-effective mechanism for price risk management, is discussed. Progressive and cumulative increases in the volume of forward sales in the major producing countries are considered by many to be the cause of the declining gold price over the past decade. In spite of negative publicity, forward selling continued as an industry-wide practice until recently (2002) when the global hedge book contracted by 352 t; contraction amounted to 158.6 t in first quarter of 2006. The objectives and benefits of hedging include continuity and stability of cash flows, stability in price achieved, reduction of frictional costs, and creating an effective management tool. The importance of a defined hedging strategy in reducing uncertainty about the hedging objectives is essential to a successful hedging policy. Historical patterns in hedging revenues at an industry level indicate five distinct periods during which the fortunes of hedgers have fluctuated. Finally, since 2001 the rising gold price and reduced price volatility through the consolidation in the global price means that the need to stabilize revenue flows is less urgent. This has meant that hedging is becoming progressively less important for the mining industry at large.

Jan 1, 2007