Search Documents

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

By I. J. Barker

Keywords: Submerged-arc furnace, plasma furnace, d.c. furnace, scale up, Søderberg electrodes, smart grid, demand side management, load shedding This paper argues that the scale up of furnaces and the supply of electricity are going to be two major issues that will affect the ferro-alloy industry in the near future, and that economic factors will drive this development. The most common type of furnace for producing ferro-alloys at present is the submerged-arc furnace with three electrodes, fed from a three-phase a.c. electrical supply. The scale up of this technology has now reached a fundamental constraint, which is caused by the electrical reactance of the secondary circuit. If the economy of any further scale up is to be achieved in the future then a different technology will have to be used. The supply of electrical power in future is likely to become a more complex issue than it is at present. Existing submerged-arc furnaces tend to run at fairly steady loads, but the ability to swing the load under demand-side management may offer advantages, and may allow a furnace to get cheaper power from the organisations that supply this power. This will have to be counterbalanced against the nuisance factors incurred by having a varying load in the operation of the furnace. Various options are therefore discussed in this paper. The possibility of scale up of Søderberg electrodes is discussed, as well as the use of d.c. power and multiple electrodes. Some of the issues with load swinging are also examined. A particular scenario is also briefly presented to show that considerable further scale up of ferro-alloy furnaces is still possible.

Jan 1, 2011

By V. Coetzee

Keywords: Pyrometallurgy, furnace, PGM, platinum, nickel, copper, electric smelting, six-in-line, Peirce-Smith, Impala Platinum In 1992, a paper was compiled highlighting a common-sense approach to electric smelting at Impala Platinum. Since then, the smelter complex has undergone considerable changes. Mineral economics, UG2 exploitation, and changing environmental legislation have enforced numerous process upgrades, yet a common-sense approach has always been adopted. This document details the major changes in the smelter complex at Mineral Processes (Minpro) over the past 15 years, and provides the rationale for the changes.

Jan 1, 2006

By A. F. S. Schoukens

The Mintek Thermal Magnesium Process (MTMP) was successfully demonstrated in November 2004. The pilot plant was operated continuously for 8 days, during which about 30 tons of magnesium producing recipe was smelted in a DC (direct-current) arc furnace at a feed rate of 525 kg/h. The furnace was operated at power levels of 700 to 850 kW, resulting in slag tapping temperatures of 1600 to 1700°C. Magnesium extraction averaged 77 per cent and was as high as 85 per cent during good extraction periods. The furnace generated 70 to 85 kg/h magnesium vapour that was delivered to the condenser where the temperature was controlled at 680 to 720°C. The novel condenser captured the magnesium in a liquid state, which was tapped periodically as required. In total, 15 magnesium-tapping operations were carried out, proving that online magnesium tapping can be consistently performed without any major difficulty. About 3500 kg of crude magnesium was produced with a quality that was similar to, if not better than, that of the Magnetherm?s crude metal. The condensation efficiency averaged 85 per cent, and peaked at 87 per cent, which exceeded the target of 80 per cent set for the pilot scale. A brief magnesium market study was also carried out. Magnesium demand is expected to keep on growing by 6 to 8 percent over the next 10 years and could reach 2 million tons by the year 2020. The growth will be mainly in the die-casting sector for light-weight automotive applications. China is likely to remain the dominant supplier of primary magnesium but competitively priced non-Chinese magnesium producers will be needed to sustain the anticipated growth of 6 to 8 per cent over the next 10 years. In addition, a prefeasibility study was undertaken for a commercial plant. The study confirmed the relatively low capitalcosts of the MTMP process, as well as the competitiveness of theoperating costs, as compared to the industrial electrolytic process.

Jan 1, 2006

By J. Böhlke, B. Friedrich, E. Hecker

The legislation for the disposal of heavy metals contaminated substances is still going to be tightened up in the future. The main criteria for the utilization or deposition of these residues are the content and the water solubility of these metals. Through this, the use of slags from the lead-and zinc-industry in road building may become limited or even not possible at all. From an economic point of view this would lead to Pb/Zn losses and costs for safe dumping. This paper investigates the feeding of the reducing agent via hollow electrode DC smelting and the yield of metal reduction. After carrying out thermodynamic calculations, the process window conditions for electric-arc furnace tests were determined. Doing this, the zinc could be reduced, evaporated and recovered as an oxidic intermediate product flue dust, while the lead was present either in flue dust or in metallic form. The zinc content in the final slag could be reduced by up to 90%. The slag product has undergone an eluation test which allows it to be used as building materials. Keywords: zinc reduction, lead reduction, hollow electrode, slag treatment, electric arc furnace

By M. J. King, A. Weissenberger, W. G. Davenport

Keywords: Pyrometallurgy, sulphuric acid, sulphur dioxide The raw material for sulphuric acid manufacture is clean SO2 gas. It comes from (i) burning molten by-product sulphur; (ii) roasting or smelting metal sulphide concentrates, and (iii) decomposing contaminated organic chemical process sulphuric acid catalyst. Efficient gas cleaning is required for metallurgical and contaminated acid decomposition gases, especially the former. Sulphuric acid is made from SO2 gas by (i) oxidizing the SO2(g) to SO3(g) in contact with supported liquid-phase catalyst then (ii) reacting the resulting SO3(g) with the water component of 98.5 mass% H2SO4, 1.5 mass% H2O acid. This paper discusses the reasons for these process steps and indicates how acidmaking can be controlled and optimized. Special emphasis is placed on SO2(g) oxidation efficiency and how it is influenced by feed gas composition, feed gas temperature, catalyst composition, catalyst bed pressure, number of catalyst beds, and double versus single contact acidmaking. In addition, a review of various other treatment methods for SO2-bearing gases is provided. A brief description of each process is included along with commentary on their technical and economic applicability for use at metallurgical facilities.

Jan 1, 2006

By M. Jacobs

Keywords: Smelting, converting, sulphide, sulphide smelting, platinum, platinum group metals, PGM, base metals, nickel, copper, matte, slag, furnace, electric furnace, Söderberg, electrode, granulation, converter, flash drier, sulphuric acid, acid plant, Ausmelt, Sirosmelt, pyrometallurgy, metallurgy, Anglo Platinum, South Africa Waterval Smelter complex is situated in Rustenburg, in South Africa?s North West Province. The smelter objective is to process wet concentrate to produce crushed, slow-cooled, sulphur-deficient nickel-copper matte rich in platinum group metals (PGMs), gold, and base metals for despatch to the Magnetic Concentration Plant at the Base Metals Refinery. Throughout its history, the smelter complex has been continuously upgraded in line with increasing production demand, changing feeds, environmental initiatives, and advances in available technology. The smelter receives filter cake and slurry from Anglo Platinum concentrators and joint ventures. Wet concentrate is fed through a flash drying process utilising coal-fired, fluidised bed hot-gas generators, to produce dry feed material for the electric furnaces and slag-cleaning furnace. For primary smelting, two electric furnaces are used, each with a rated capacity of 34MW. Furnace matte, containing the bulk of the base metal sulphides and PGMs, is tapped periodically into refractory-lined ladles and granulated using high-pressure water jets, then dried through electrically powered pneumo-driers to become the main feed to the Anglo platinum Converting Process (ACP). Slag is tapped semi-continuously, granulated, and treated through the slag mill. The ACP treats the combined matte output of Waterval, Polokwane, and Mortimer smelters. It is a top-blown furnace, with furnace matte, air, and oxygen being injected into the converter via a lance submerged in the slag. Converter matte is tapped and bottom cast into moulds, slow-cooled, crushed, and despatched to the refineries. Slag is granulated and dried for recycling to the slag-cleaning furnace. ACP slag is fed to the slag-cleaning furnace along with a reductant and a sulphur source. Slag-cleaning-furnace matte is granulated for processing by the ACP, while slag is granulated and processed in the slag mill. The slag mill and flotation circuit treats granulated slag from the electric furnaces and slag-cleaning furnace to recover entrained matte containing valuable PGMs and base metal sulphides.

Jan 1, 2006

By L. K. Witika, J. H. Masinja

"Investigations of flotation characteristics of Lumwana and Kansanshi ores using formulated frothers were carried out. Of the six frothers tested, two came from the alcohol family, two from the glycol family and last two were formulated products. The initial work involved determining the optimum mesh of grind and frother dosage for Lumwana and Kansanshi ores. Further work involved carrying out surface tension, bubble size and froth stability measurements. Finally, water recovery tests were conducted at Lumwana and Kansanshi mine sites. For froth stability tests, six frothers were tested on a two-phase (water–air) system using the Bikerman column flotation cell, while water recovery tests were conducted using a total of seven frothers, including the standards for each plant. The results of the testwork showed that (i) although a stable froth is essential for optimum recovery of valuable minerals, a higher molecular weight frother, like Dowfroth 250, caused poor selectivity when used on fine ores and (ii) a lower molecular weight frother was suited for Lumwana ore, while a mid to higher molecular weight formulated product was suitable for Kansanshi sulphide ore. INTRODUCTION Investigations of flotation characteristics of Lumwana and Kansanshi ores using formulated frothers were carried out. The initial work of this project involved determining the optimum mesh of grind and frother dosage for Lumwana and Kansanshi ores. Further work involved carrying out surface tension, bubble size and froth stability measurements. Finally, water recovery tests were conducted at Lumwana and Kansanshi mine sites. In order to investigate the gangue entrainment levels in the Lumwana and Kansanshi sulphide ores, two well-known methods (froth stability and water recovery) were used. Firstly, froth stability tests were conducted using six frothers, two from the glycol family (Dowfroth 200 and Dowfroth 250), two from alcohol family (MIBC and pine oil) and other two from the formulated family (Betafroth 20 and Betafroth 245), at the University of Cape Town’s Centre for Mineral Research (CMR) laboratories. Froth formation and stability measurements were conducted using the Bikerman column flotation cell."

Jan 1, 2015

By S. Kwon

When an underground excavation is created near to an instrumented measuring location, deformation at the location increases. The characteristics of this deformation increase, as well as the duration of the influence caused by the adjacent excavation, is dependent on parameters such as opening geometry and measuring location. In this study, neural networks were applied to investigate the deformation increase and the influence of each parameter on the deformation change derived from extensometer measurements at the Waste Isolation Pilot Plant (WIPP) site in New Mexico, USA.

Jan 1, 1998

We present a novel hybrid algorithm for quantifying the ore grade variability that has central importance in ore reserve estimation. The proposed algorithm has three stages: (1) fuzzy clustering, (2) similarity measure, and (3) grade estimation. The method first considers data clustering, and then uses the clustering information for quantifying the ore grades by means of a cumulative point semimadogram function. The method provides a measure of similarity and gives an indication of the regional heterogeneity. In addition, grade estimations can be obtained at different levels of similarity using a weighting function, which is the standard regional dependence function (SRDF). Keywords: Grade, fuzzy clustering, similarity measure, point madogram, weighting function.

Jan 1, 2008

By T. Struminski

The paper is aimed to assess the possibilities of usage of pyrometers and thermal cameras to study ventilation and environmental conditions in underground mines. Surface and underground thermovision tests were carried out in the Rudna mine and included channels and diffusers of some selected fan stations, shaft crest closures, engines of central fans and their instrumentation. The thermovision underground tests in the Rudna mine consisted of ventilation barriers, underground fans, temperature of rocks, ventilation machines, parts of belt-conveyors and electric machinery.

Jan 1, 2003

By R. Dekkers, J. Plessers

The feasibility of using hydrogen to obtain clean steels is investigated. High hydrogen contents are generally considered as detrimental due to the risk of flakes, bubbles and breakouts during casting. Hydrogen can nonetheless be removed by degassing of the steel. The results of industrial campaigns, where total oxygen content and hydrogen content were monitored, are presented. High resolution microscopy of inclusions and laboratory experiments on the rate of inclusion removal by CaO-Al2O3 slags at different partial hydrogen have been carried out. So far, evidence that hydrogen may influence inclusions or the steel cleanliness is not clear. Keywords: hydrogen, cleanliness, inclusions.

Jan 1, 2004

By Cade Mweemba, Alex Mwanza, Jackson Sikamo

"The Zambian Copper mining industry as we know it today has its genesis from early in the 20th century in the 1920s. Consistent private sector-driven investment in the industry over a period of over 50 years in exploration, mine development and operation, development of minerals processing facilities, building of infrastructure for pyrometallurgical and hydrometallurgical processing, with attendant support facilities, including building of whole new towns, resulted in copper production going from zero to a peak of 769 000 tons of copper in 1969. At the same time, the industry created jobs to the extent that in 1972 the industry had over 62 000 direct jobs. The industry was nationalized in 1973 and remained in government hands for just over 24 years. During this period, the industry experienced a serious decline in production levels, reaching the lowest level at the dawn of the 21st century in the year 2000 when production was 250 000 tons. In terms of jobs, an average of just under 2000 jobs were lost every year in the 24-year period, reaching just over 22 000 direct jobs in 2000. Following the return of Zambian politics to pluralism and liberalized economic policies, the government decided to privatize the mining industry. The process started in 1996 and by the year 2000 all the mining assets had been privatized. The new investors embarked on serious investment to upgrade the assets and to develop greenfield mining projects. Fourteen years later and investments of over USD 12 billion, the industry production levels increased year- on-year to reach a peak of 763 000 tons in 2013 with direct jobs reaching 90 000. This paper discusses the impact of the mining industry in Zambia on the economy in areas such as employment, support to other industries, direct contribution to the national gross domestic product (GDP), foreign exchange earnings and social amenities. The paper also focuses on the performance of the mines during these periods vis-à-vis mineral availability, mineral grades and complexity, new technologies and human capital. This is looked at particularly in the light of current challenges the industry is facing and makes suggestions on how the industry can be nurtured to continue being a major driver for the Zambian economy and a major player in the international copper mining business."

Jan 1, 2015

By M. M. D. S. Vemba

Paper written on project work carried out in partial fulfilment of B.Sc. Eng (Mining Engineering) degree Engineering refers to the application of mathematics and other sciences to logically develop solutions to problems. However, in opencast mining, due to the randomness of operations, the use of mathematics is often neglected. Instead, practices that have proven successful elsewhere tend to apply. At the other end of the scale, mathematical models have been developed to identify and quantify all the operational parameters involved in the loading and haulage of ore. These are then used to optimize the operation. Optimization in this context, refers to the reduction of cost through effective utilization of the available time and resources. Considering these mathematical models, the loading and transport system at SMC (Catoca Mining Society) will be assessed with a view to its optimization. The discussion will be introduced by considering the mine background and other general information, which will highlight the main operational variables.

Jan 1, 2004

By M. F. Handley

Sequential grid mining has been employed as the primary mining strategy at the AngloGold West Wits Elandsrand Mine since the inception of stoping operations from the sub-vertical shaft system in 1988. Little has been published on sequential grid mining as a mining strategy since, and the purpose of this paper is to describe sequential grid mining, its history, its implementation at Elandsrand, and the outcome to date. The results obtained using sequential grid mining have been evaluated from seismic data, productivity statistics, and rock related accident statistics. Comparisons with neighbouring mines namely Western Deep Levels and Deelkraal, have been made to substantiate the improved conditions observed at Elandsrand, and to compare sequential grid mining directly with longwall mining in similar conditions and at similar depths. Sequential grid mMining is shown to be cost-effective, more flexible, and safer than long wall mining in similar conditions, at least on the Ventersdorp Contact Reef in the western part of the Carletonville Goldfield. More work is necessary to establish it as the favoured mining strategy at depths exceeding 3000 metres, and for reefs other than the Ventersdorp Contact Reef.

Jan 1, 2000

Keywords: Pyrometallurgy, furnace, Lonmin, platinum, PGM, UG2 Lonmin, earlier than any other primary platinum producer, had to deal with the concentrating and smelting of UG2-rich ores and concentrates respectively. Smelting was performed at a fairly modest scale compared to its industry peers in the Platinum Group Metals (PGMs) industry, and was focused on smelting concentrates obtained through low mass pulls while still maintaining high recoveries at its concentrators. Lonmin gradually smelted larger quantities of UG2 concentrates. Initially two 2.3 MW Infurnco furnaces were commissioned in 1982, followed by three 5 MW circular 3-electrode Pyromet furnaces in 1991. Deep electrode immersions and moderately high hearth power densities were used in all the designs. Lonmin decided to continue with circular furnace technology when it planned its new high-intensity No. 1 Furnace. Neither Lonmin nor the technology supplier and EPCM company foresaw the challenges that scale-up would bring when applied to the smelting of UG2-rich concentrate blends. Superimposed on the high chromite content, was the low base-metal loading, mineralogical difficulties, and fine particle size that came with milling of all concentrates (especially UG2 and recycle materials within the smelter). Through a process of fundamental diagnoses of furnace run-outs and wear patterns observed during repairs, the main challenges operating this high-intensity furnace were identified as sulphur vapour corrosion of the copper coolers, uneven and unpredicted movements of refractory bricks with associated copper cooler lift and matte tap-block movement, the formation of three-phase ?mushy? zones, high refractory and tap-hole wear rates, uncertainty in matte level and associated insufficient matte buffer height, and high furnace operating temperatures. These factors seldom worked in isolation and will be explored in more detail in the paper. The variability in furnace feed characteristics led Lonmin to re-design Furnace No. 1, to invest in back-up furnace capacity, and to invest in improved monitoring and control. These improvements consisted of online and high-frequency off-line feed chemistry and mineralogy monitoring, online pressure monitoring of water-cooled circuits, an alternative matte liquid level measurement in the furnace, and electrode immersion estimation. Improvements were also made at the converters by installing and utilising optical spectral analysis of the converter flame to characterise converter behaviour and achieve the desired iron end-point for white matte. This paper also briefly discusses the current and future expansion plans, as well as ancillary operations at the smelter such as flue-gas handling and materials handling.

Jan 1, 2011

By J. Chirasha

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

Jan 1, 2011

By Siyabonga Malevu

Chemical Initiatives? Umbogintwini plant is the production facility of Chemical Initiatives? business. Umbogintwini?s J Plant manufactures sulphuric acid. The plant was designed and built by Simon Carves, and was commissioned in 1974. The plant was designed to produce 500 tons/day of Sulphuric acid (H2SO4) at maximum rates. The Sulphuric acid manufacturing is through the famous contact process whereby liquid Sulphur is injected through dried air in a burner operating at 1000 °C to form sulphur dioxide (10.5% SO2). The SO2 gas is then cooled in waste heat boiler no.1 before being fed to a four pass converter which provides 99.5% SO2 conversion to sulphur trioxide (SO3). The SO3 gas is the absorbed by 98.5% H2SO4 through the inter-pass & final tower to make more concentrated acid and dilute it with water back to 98.5% H2SO4 in acid pump tanks and dispatched to storage tanks. The manufactured Sulphuric acid is supplied to a variety of industrial manufacturing customers includes Pulp & Paper industry, Mining industry, Chemical manufacturing industry etc. During the 1st quarter of the year 2007, Chemical Initiatives undertook a study to up rate the sulphuric acid plant output by 10% (i.e. from 500 tpd to 550 tpd).

Jan 1, 2009

The modelling of lithological domains is a critical step in mineral resource and reserve evaluation. Deterministic models rely on an interpretation of the available drill hole data and expert knowledge, but do not account for the uncertainty in the spatial extent of the lithological domains. Instead, probabilistic models based on conditional simulation can be used to map the probabilities of occurrence of the domains within the deposit, which reflect the uncertainty in their presence or absence at unsampled locations. The mineral grade model is then obtained by weighting the predicted grades associated with each lithological domain by the probability of occurrence of this domain. Such an approach accounts for the continuity of the grades proper to each lithological domain and for the uncertainty in the spatial extent of these domains within the deposit. An application to a porphyry copper deposit is presented. Keywords: spatial uncertainty; plurigaussian simulation; geological control; kriging; geostatistics.

Jan 1, 2007

Poorly designed sampling protocols generally result in high project risk by artificially increasing grade variability (ie the nugget effect). Sample collection, preparation and assay protocols that suit the ore type, together with QA/QC systems, will reduce this risk. All reporting codes (eg JORC, 2004) require the Competent Person to consider the quality and implication of sampling and assaying programs. High sampling errors beget higher project uncertainty; despite this fact, sampling does not receive the attention it deserves. The case studies presented show that many sampling issues frequently go unrecognised or unaddressed, resulting in poor project decisions during exploration through to feasibility and production. The overall conclusion is that correct sampling is critical to mining project success and that there is often a need for its optimisation.

Jan 1, 2007