Search Documents

By S-J. Park

When evaluating mining investment opportunities, one should consider the risks associated with mineral exploration and development. These are commonly classified as technical, economic, and political risks, and are accounted for in the investment decision by changing the discount rate. Thus, a company may use different discount rates associated with varying risks in order to compensate for the variability of success. The discount rate has a tremendous effect on the economic evaluation of mineral projects. Even when all other factors used as inputs for calculating the NPV (net present value) are equal, the project under consideration may be accepted or rejected depending upon the discount rate. Determining a realistic discount rate for a given project is therefore the most difficult and important aspect of cash flow analysis. It should be determined with the consideration of proper technical, economic, and political conditions surrounding the specific project undergoing economic evaluation. One key problem for determining the appropriate discount rate is that it typically depends more on subjective perception of the degree of risk or other experience factors than on a systematic approach. Thus, this study aims to identify, analyse, and document the type, role, and impact of risk factors influencing the determination of discount rates, and then to determine discount rate by using the aforementioned factors.

Jan 1, 2011

By L. Chanderman, C. E. Dohm

"Mineral Resource estimation (MRE) and classification are highly dependent on the confidence in the model of the orebody geometry, known as the geological model, within which the estimates are constrained. An understanding of the geology of a deposit is thus fundamental to the Mineral Resource evaluation process. The geological model is a function of the structural and depositional complexity of the geology captured by drilling information, which is limited in the early stages of a project. The information effect has a significant impact in terms of the interpretation of the geology as well as the estimation of grade continuity and the resultant risk associated with the Mineral Resource estimate and classification.Therefore, as new drilling information becomes available, it is necessary to update and refine the geological model to appropriately constrain the resource estimates. The grade information is also updated, including statistics and the spatial correlation characteristics. This refinement is based on geological interpretations derived from the drillhole information that becomes available throughout the life of the mine; orebody knowledge that comes from working experience of the deposit, as well as familiarity with the software package used for modelling, is also important.In updating, the potential to identify new resources in previously unknown areas may be realized. The opposite may also occur where previous interpretations of ore continuity are refuted. Both scenarios could result from a better understanding of the geology of the deposit and thus a more realistic MRE, which reduces geological risk. This paper describes how newly drilled advanced grade-control holes for a gold deposit in Mali were used to refine the 3D geological model for the deposit in an attempt to identify the potential for additional oxide ore using conventional geostatistical evaluation techniques."

Jan 1, 2017

The 114th Annual General Meeting of The Southern African Institute of Mining and Metallurgy was held at The Country Club, Johannesburg, Napier Road, Auckland Park on Thursday, 11 August 2011. Welcome The President extended a special welcome to the guests and representatives of our sister institutes and other associations, and also to recipients of awards, senior members of industry, Honorary Life Fellows, past-presidents, our members and other guests, among them the following: F. Cawood, President, Institute of Mine Surveyors of South Africa C. Roode, President, Mine Metallurgical Managers' Association of South Africa M. Cresswell, Chairman, South African Coal Processing Society A. Hay, Immediate Past President, South African Institute of Electrical Engineers L. Gardner, President, South African National Institute of Rock Engineers J. Krynauw, President, The Geological Society of South Africa (GSSA)

Jan 1, 2011

By E. Van Der Lingen

Within the context of the overall gold market industrial demand plays an important role. Industrial demand for gold was 430 tonnes in 2008, approximately 12% of total end-user consumption. The dominant consuming industry in this market for gold remains the electronics sector, consuming an estimated 300 tonnes, primarily through the use of gold bonding wire for computer chips and plated contacts and connectors. Substantial demand also derives from dental applications, with other smaller industrial markets and decorative uses of the metal (non-jewellery) constituting the balance. In each market gold faces tough competition from alternative lower cost materials, such as silver and copper (electronics) and ceramics (dental). As well as the obvious benefits to the gold market resulting from this constant physical demand, there are an umber of additional positive factors concerning the use of gold in industrial applications: ?Price inelasticity: demand for gold from the major consuming industries has so far proven to be relatively robust in the face of significant increases in gold price. ??Stickiness?: the gold consumed by industrial uses tends not to return easily to the market (i.e. the demand is ?sticky?) because it is highly dispersed. ?Image: the beneficial environmental and medical applications of gold (e.g. gold used in the treatment of prostate cancer and in purification of contaminated water) are helpful to the positive image of gold. ?Added-value: new industrial uses for gold can create substantial added value in the supply chain, particularly in gold producing countries.

Jan 1, 2009

By Bjørn Nilsen, Brian J. Ballou

The Tellnes open pit mine in Southwestern Norway has been operating since 1960. The maximum height of pit walls is currently about 150 meters with the current mine plan extending this distance to 400 meters with slope stability being a major controlling factor. As a result of unfavorable combinations of directions of major joints and faults, local stability problems have occurred several places in the pits walls. Stability problems have affected the reliability of main transport roads on several occasions. Most of such incidents have occurred during heavy rainstorms and during periods of repeated freezing/thawing. This paper reviews some of the stability problems and the measures taken to deal with such stability problems.

Jan 1, 2006

By D. -X. Li

The paper covers many literature reports of processes using nitrogenous species as an oxidant for processing refractory gold ores, especially development in the pretreatment of refractory gold minerals by nitric acid. These processes include the high-pressure and the atmospheric-pressure oxidation methods. High-pressure oxidation processes are difficult to carry out, because they require high-capital cost autoclaves. Atmospheric-pressure oxidation processes are easier to manipulate, but complete absorption and reuse of NOx is difficult or multiple-stage absorption must be established for its reuse. So, some new methods were developed, such as catalytically oxidizing technology of NOx to allow subsequent recovery of gold. Keywords: nitric acid; pretreatment; refractory gold

Jan 1, 2009

By O. T. Konina, V. A. Masloboev, A. V. Svetlov, E. A. Krasavtseva, D. V. Makarov, A. A. Goryachev

Dusting phenomena have been examined at the tailings storage facility of Apatit JSC Kirovsk, a mining operation located in the far north of the Russian Federation. The material composition of the tailings was identified. Existing dust suppression methods were examined. Field observations were undertaken and official data was obtained from the Murmansk Administration for Hydrometeorology and Environmental Monitoring, and analysed. A database was built for forecasting dusting according to critical scenarios in order to estimate the peak MPCs of suspended solids in the atmospheric air. Mitigation measures were formulated and recommended to the mining operation. Keywords: Mineral dust particles, apatite-nepheline ore concentration tailings, suspended solids MPC, climate change

Jan 1, 2020

Mixed integer programming (MIP) has been used for optimizing production schedules of mines since the 1960s. The major problem in the long-term production scheduling for an entire orebody is that the number of integer variables needed to formulate an MIP model is too large to solve the formulation. This number may reach well over one hundred thousand. To overcome this difficulty, this paper presents two new algorithms to reduce the size of the problem. These algorithms assign an earliest and latest possible start date for each machine placement, eliminating the integer variables that correspond to machine placement before its early start date and after its late start date. A case study based on Kiruna Mine, the second largest underground mine in the world, is summarized in the paper. It shows substantial improvement in the solution time required using the new algorithms. This increased efficiency in the solution time of the MIP model allows it to be applied to Kiruna Mine, with the potential to increase substantially the net present value (NPV) of the project.

Jan 1, 2008

By M. Kamali

In this research, in order to predict the peak particle velocity (PPV)(as vibration indicator) caused by blasting projects in the excavations of the Karoun III power plant and dam, three techniques including statistical, empirical, and neural network were used and their results were interpreted and compared. First, multivariate regression analysis (MVRA) was used as statistical approach. Next, PPV was predicted using some widely used empirical models. Lastly, an artificial neural network was used. In the ANN model, maximum charge per delay, total charge per round, distance from blast site, direction of firing, blasthole length, number of blastholes, total delay in milliseconds, number of delay intervals, and average specific charge were taken into consideration as input parameters and consequently the PPV as output parameter. The results of the techniques were interpreted from two points of view. Firstly, the correlation between the observed data and predicted ones, secondly the total error between observed data and predicted ones. The MVRA had a satisfactory correlation but its error of estimation was comparatively very high. The empirical model had reliable correlation and a small error of estimation; in total the results of empirical method were more reliable than those of MVRA. Generally, the ANN approach showed very high correlation and a very small error. The results of this research indicated that the ANN model is the best predicting model for PPV in comparison with other approaches.

Jan 1, 2010

By K. Andres

This paper presents the vibrating mill technology and summarizes the grinding principle of ultra fine grinding. In addition, a variety of operations is described and the benefits of these different operating modes? product size and efficiency are specified. A case study of an industrial application is presented to show the integration of vibrating mills into grinding circuits. The primary focus is the overall process scheme of this technology, the installation and operating costs, as well as the design parameters required for best performance. The vibrating mill can be used in a wide range of applications for process engineering duties. For a wide range of applications, from soft to extremely hard products, which require ultra fine grinding, surface activation or homogenization, the vibrating mill is well proven. Due to its easy operation, versatility and operation efficiency, the PALLA? vibrating mill gains in importance in the mineral processing industry. Keywords: Coal, comminution, grinding, mineral processing

Jan 1, 2010

The compilation of the sampling nomogram is an essential tool in the optimization of a sampling protocol and allows the operator to track the change in relative variance of the sampling error (the Fundamental Sampling Error) during steps of comminution and mass reduction in the process of recovery of the aliquot for analysis. The data required for the compilation of the nomogram are centered on the sampling constant K and the exponent, alpha (a), of the nominal fragment size. Five methods for establishing K have been identified, but two of them, the duplicate sampling analysis (DSA) method and the heterogeneity test (HT) method purport to provide such a constant. The step by step procedure for each of these two methods was examined using broken ores from three mines, Mponeng mine, Kloof mine and Lily mine. Two of these mines (Mponengand Kloof) are typical Witwatersrand-type gold mines, while the third is an Archaean-type, shear related gold deposit situated in the Barberton Greenstone belt. The results suggest that the factor K derived using the heterogeneity test is very accurate, but applies only to a single size fraction in the spectrum of comminuted materials. The calculation of gold grain sizes using this method appears to be too small and does not conform with the results from detailed mineralogical studies. The factors K and alpha derived using the duplicate series analysis, are appropriate for use across a wide spectrum of comminution sizes and also provide realistic gold grain sizes, comparable with the equivalent circular diameter of gold grains identified in mineralogical studies of the ores.

Jan 1, 2009

By C. M. Rule

High pressure grinding rolls (HPGR) technology has come a long way in its application for comminution duty in hard rock mineral processing in the last three years. Several major projects in copper, nickel, gold, molybdenum, platinum, and iron ore have opted for this technology. Advances in wear abatement technology have established the HPGR as a reliable machine with the required high utilization and availability. The HPGR captures the imagination as the next step change improvement in ore processing, based on the following benefits: ?Energy efficiency (potentially 10?30% more efficient)?very topical in an increasingly ?green? society, and in times of rapidly increasing energy costs and availability concerns. 2008 has shown this to be especially important in Southern Africa ?High (and stable) throughput with a relatively small footprint ?Lower operation cost ?Liberation benefits ?Creative ?mine-to-metal? system improvements made possible by HPGR. The platinum industry, renowned for its historically conservative approach, has not been left behind with two significant new HPGR installations, one in Platreef application and one in UG2 application, commissioned in 2008. While the decision for the Platreef application was driven primarily by comminution circuit capacity and design imperatives, the UG2 application seeks to develop a flowsheet that will have a significant recovery benefit in addition to capacity increase and reduced operating cost. The Platreef application of HPGR also provides the opportunity to introduce a novel comminution flowsheet and to demonstrate exceptionally low wear rates treating very hard, abrasive and variable ore types. The HPGR lends itself for inclusion in existing SABC circuits to increase the capacity of the plant and mills. With current PGM prices many operations are attracted to the HPGR technology benefits. The HPGR clearly has the potential to transform entrenched opinion and provide decision makers with significant alternative comminution options. This paper aims to provide an overview of the current applications and to speculate on the transforming stimulus that the HPGR exerts on industry.

Jan 1, 2009

By B. Orgilbayar, B. Unursaikhan, S. Sukhbat, Ts. Zagarzusem, D. Baasanjav, L. Jargalsaikhan, E. Otgonjargal, N. Sugir-Erdene, Ts. Soyolmaa

This study has investigated the efficacy of the gravity beneficiation method based on gravitation and centrifugal forces for manganese ore. Powdered samples of manganese ores from the Unagad deposit in Mongolia were analysed for their element and mineralogical composition using ICP-MS and X-ray powder diffraction (XRD). The analysis presented the mineralogical compositions of the ores as hydro goethite, manganese minerals and magnetite, gangue minerals as quartz, albite, orthoclase and microcline of manganese ore. Manganese minerals are white in colour and have micro-veinlet, fine grained-aggregates associated with gangue minerals. The most important manganese minerals are hausmannite, pyrolusite, rhodochrosite, and manganosite. The composite of feed containing 17.31 % Mn and 36.3 % SiO2 was processed in a shaking table. In the experiment, a concentrate assaying 41.37% Mn was obtained from this composite with 65% recovery. In another experiment, f80=0.074 mm particle size ore was used in the MGS concentration test. A concentrate containing 38.34 % Mn with 75.2% recovery was produced in this experiment. The results showed that it is possible to obtain concentrate through gravity processing of manganese ore, which is an economically beneficial process for producing a product of a standard requirement. Keywords: Manganese ore, gravity separator, centrifuge, shaking table 1. Introduction

Jan 1, 2020

By P. Henning

Rock fall accidents continue to be the main cause of fatal and serious injuries in the mining industry. Although there has been an improvement in the FOG (falls of ground) related fatal and serious injuries over the past few years, the rate is still too high. New technology has made it possible to reduce this rate significantly. FOG accidents imply failure of the support system or the design of the support system in use. In this paper we deal with the latest technology available to assist the mines to reduce the rates of FOG related injuries and fatalities.

Jan 1, 2010

By P. L. Moolman

An approach to the design of a tailings disposal system is presented using an example from a platinum project on the eastern limb of the Bushveld Complex as a base case. The design is driven by two inputs: namely, maximizing water recovery and minimizing power cost, expressed as cubic metres and kilowatts per ton of solids deposited on the tailings storage facility respectively. The approach considers low-, medium-, and high-density platinum tailings and uses material-specific aspects such as thickening and rheology to determine the most economical option. An analysis based on direct capital and operating cost (water and electricity) shows that the medium-density scenario results in the lowest total cost per ton of tailings deposited, even though this system results in the highest electricity consumption per ton of tailings deposited. As the cost of water and electricity is likely to increase in the future, the higher-density tailings disposal options become more economical, with the paste option the preferred option.

Jan 1, 2012

By C. Montoya

This paper shows, through a case study, the impact of multivariate grade modelling upon mine design and mine planning. A deposit explored by drill holes is considered, in which the grades of five elements (copper, silver, molybdenum, arsenic, and antimony) are of interest. Forty alternative models of the deposit are constructed by fitting the joint correlation structure of the grade variables and using conditional cosimulation. In addition, a reference model, obtained by averaging the alternative models, is also considered. The study shows that the resulting mine design (final pit characteristics and production schedules) is sensitive to the grade model under consideration, and that the design based on the reference model may not be optimal when compared to the alternative models based on cosimulation. However, when assuming a given long-term plan and extraction sequence, the grades and net present value (NPV) calculated on the reference model are unbiased with respect to those calculated on the alternative models with the same extraction sequence. The latter allow assessing the possible dispersion of the actual grades and NPV around their expected values, and are useful for the planner in order to determine the probability of meeting given production targets and of exceeding or falling short of given threshold grades. Additionally, unlike cosimulation, the separate simulation of each grade variable leads to unrealistic resource models and to biased results in mine design and mine planning. This approach should therefore be avoided, unless the grade variables are spatially uncorrelated.

Jan 1, 2012

By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009

By V. Léveillé

As new legislation drives metallurgical plants to lower SO2 emissions, plant managers face the challenge of keeping their costs under control. The Cansolv® SO2 Scrubbing System has been broadly adopted in the non-ferrous industry as a cost-effective solution for smelter operators to meet the new SO2 emissions targets. The Cansolv® SO2 Scrubbing System is an a mine-based regenerable process that selectively absorbs SO2 from a variety of gases, including dilute smelter gases, such as furnace and converter gases. The system produces a pure, water-saturated SO2 by-product stream, which can then be directed to the front end of a sulphuric acid plant for conversion to sulphuric acid. When deployed in a smelter complex, the Cansolv® SO2 Scrubbing System may also be used to process acid plant tail gas, allowing single absorption sulphuric acid plants to achieve emissions an order of magnitude lower than that of a double absorption acid plant with a lower capital investment. Depending on inlet gas temperature, SO2 emissions in the treated gas can be controlled to as low as 55mg/Nm3. This paper will describe some of the applications where customers have or are planning to use the Cansolv® SO2 Scrubbing System, as well as which features and cost advantages for the treatment of smelter gases were important in the technology choice.

Jan 1, 2009

By S. Krishnannair

Singular Spectrum Analysis (SSA) is an effective data-adaptive multimodal tool for monitoring chemical processes. However, monitoring multiscale signals using principal component analysis obtained from the multilevel decomposition of process signals using basic SSA assume the upper control limits of monitoring charts (" ) to have a Gaussian distribution. This assumption deteriorates the performance of basic SSA when applied to the monitoring of nonlinear processes. To address the issue in this paper, the kernel density estimation (KDE) was used to estimate upper control limits of monitoring charts for basic SSA based nonlinear process monitoring techniques. The monitoring performance of the resulting basic SSA-KDE approach was then compared with a basic SSA approach of which upper control limits of the monitoring charts were determined based on a Gaussian distribution. Application on nonlinear dynamic simulated process and base metal flotation plant chemical processes showed that the SSA-KDE approach provided better overall performance than the SSA approach with Gaussian assumption-based upper control limits for its monitoring charts. Keywords: Fault detection, singular value decomposition, singular spectrum analysis, kernel density estimation

Jan 1, 2020

By D. H. Diering

Definition of mineral resources and reserves forms the basis for effective mine planning and reliable public reporting of mineral assets. Historically, the mineral resource and reserves declaration process has been the domain of the geology and surveying disciplines, with the declaration of the reserves by the surveyor being based on the application of modifying factors to the declared resources available for mining. As part of an ongoing process to improve efficiency, reliability, and reproducibility of results, this approach has been revised and enhanced through the introduction of a revised process and reconciliation tools. The revised approach to reserve definition is based on the definition of scheduled resources, at an appropriate confidence estimate in the context of an approved business plan, over the anticipated life of the mineral asset being applied to define reserves. This planning and scheduling is developed, during the annual business planning process, by the mine planning department using tools such as CADSMine?. The scheduled area together with the application of revised modifying factors is tabulated in the BME (basic mine equation) and reflects the mine production plan over time. Simplification of the modifying factors to dilution and losses underpins the simple yet robust approach to improved definition of reserves in this process and in the basic resource to reserve equation (BR2RE). Dilution intrinsically affects grade but not metal content, whereas the losses reflect both the efficiency of mining and planning and are reflected in metal losses, area losses, or both. Reconciliation of the derived 'resource converted to reserve' area (which is based on the business plan from CADSMine?) versus the 'resource available for mining' (which is derived from Datamine?) underpins the robustness and auditability of the reserves declaration. This R&R accounting and reconciliation approach is transparent and facilitates interrogation of the logic and rationale of long-term business planning and project strategy. These numbers are processed and reported in the logic of the basic resource equation (BRE), which also addresses aspects such as white areas (future and historic), tail management, and partial extraction (non-scheduled pillars, etc.) in compliance with SAMREC definitions. Areas that do not have the necessary confidence and data support to be declared as resources find their space as pre-resource (outside the domain of public reporting), outlining existing potential for future extraction and reporting. Use of the BRE leads ultimately to a complete, refined accounting and reconciliation-oriented approach for all production entities. The revised resource and reserve process includes the discipline of mine planning as intrinsic to the definition and declaration of resources and reserves. Subsequent to the change in process, the resources and reserves have truly become the domain of the mineral resource management discipline. This paper defines the logic of the basic resource equations and outlines their application in the definition and reconciliation of mineral resources and reserves at Anglo American Platinum Limited.

Jan 1, 2013