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By H. Mulder, M. C. Bekker

The principal objective of this investigation was to conduct a thorough literature review on the status of project readiness mechanisms, tools, techniques, and frameworks for mining projects. The review aimed at identifying common readiness evaluation criteria as well as potential shortcomings that prevent the establishment of a generalizable project readiness index. The literature review included a general overview of capital project performances and the importance of project readiness assessments to improve project delivery success. The study then progressed towards literature involving mining projects and how this differs from infrastructure and industrial project assessments. The paper concludes by summarizing the current state of mining project readiness assessments, the unique and differentiating factors to be considered, and suggests recommendations towards the development of generalizable readiness assessment criteria for mining projects.

Sep 1, 2022

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 J. D. de V. Louw

Introduction Zircon is a natural occurring mineral and may exhibit natural low level radioactivity. It contains trace levels (90 to120 pCi/g and 110 to 115 pCi/g respectively or 3.3 to 4.4Bq/g and 4.1 to 4.3 Bq/g) of naturally occurring radioactive uranium and thorium. This mineral is often found in a suiteof minerals (rutile, ilmenite and monazite) Due to the overlap in physical properties of monazite (containing 4–7% thorium) with some of the zircon (slight magnetic susceptibility) it often contaminates the zircon, adding to the levels of thorium in the product. Hazards associated with the products from zircon and its processing is inhalation of respirable dust (generated by milling) containing radioactive uranium and thorium which may cause cancer of the lungs. Legislature regulates the transport, use, workplace environment exposure and storage of radioactive material. In America the general regulation for the unlicensed use of low levels of radioactive materials limits the concentration to 500 ppm (U plus Th). Europe (IAEA) specifies a limit of10 Bg/g (Bequerels per gram) on the parents for transport only which is a higher level of U+Th. Companies selling into these markets need to comply with these regulations and certification is therefore required, not only of the major constituents determining the price, but of the U and Th levels as well. Exceeding the limits for U and Th may result in material being returned to the country of origin. However, for the analyst the requirement is to analyse for these elements throughout the production process as well as the analysis of the ‘tails’ that is returned to the mine area. This requires a wide range of concentration to be analysed. Methods of analysis A wide variety of methods exist for the analysis of U and Th in a range of matrices. (Table I) All these methods have been used with varying degrees of success in terms of accuracy. Overall precision for the different techniques varies from 5 to 25% relative. Time to produce results from these methods vary from a few minutes to several days. The Production Chemist is expected to produce between5 and 10 analyses per hour for process control purposes. A suitable technique that fits this requirement is X-Ray Fluorescence. Both Wavelength Dispersive (WDXRF) and Energy Dispersive X-Ray (EDX) instruments are suitable. X-Ray analysis in general has a few major advantages over competitive techniques. •It is fairly simple to set up and interferences are known and easy to correct •It has multi-element analysis capabilities •Clean spectral lines for U and Th (in zircon specifically) •Uncomplicated and easy to measure background •Low detection limits (3 to 5 ppm) •A very high degree of precision •Sample preparation is uncomplicated and fast (pressed powders and fused beads). In Zircon (ZrSiO4) processed sands the matrix is constant(>99% ZrSiO4) and the background is thus essentially constant. A typical set up for the analysis of U and Th by WDXRFis given below: X-Ray Tube Tungsten (W) Target, 2.5 to 3kW operated at 50mA/50kV Crystal LiF200 (or LIF220 for higher resolution) Analytical Lines (2?)U La1,226.14Th La1,227.47 Detector Scintillation Counter Analysis time, depending on the concentration can vary from as little as 20 seconds up to 5 minutes. Standards As with any other comparative technique XRF analysis relies heavily on the quality of the standards used. Assuming proper set-up and operation of the instrumentation as well as consistent sample preparation, accuracy is determined by the quality of the initial calibration standards. A search for the available zircon certified reference materials (CRMs) shows that there are only a few CRMs

Jan 1, 2003

By J A. H Campbell

AK6 is a Cretaceous aged kimberlite located in the north-east of Botswana, close to Debswana's Drapa and Letlhakane Mines. It was discovered by Debswana in 1969, but was considered unattractive from an economic perspective. In 2003, Debot Prospecting Pty Ltd ('Debot') re-assessed the area and with the advent of new prospecting technology, particularly large diameter drilling ('LDD') and more detailed ground geophysical surveys found AK6 to be of interest. In 2005, the Boteti joint venture was formed between Debot and African Diamonds plc ('AFD'), which covered a number of Prospecting Licenses, including that which contained AK6.

Jan 1, 2010

By A. Galibois, A. Dubé, H. Monette, J. L. Collins

"The start of mining operations often raises serious financial problems. In marginal cases promoters frequently demand financial aid from governments.In the past, the financial assistance has taken the form of gifts, procurement contracts, etc., but aid in such form has been severely criticized. A new formula has been developed to provide a more equitable distribution of the revenues accruing to the government and to private capital.The benefits to these two parties have been evaluated in an hypothetical case and compared in terms of internal rates of return on their investment, their shares of the undiscounted cash flows and their primary profits.The method based on the non-zero sum game theory provides a means for suggesting the lowest feasible annual production and the optimal sum contributed by the government in the form of outright gift, equity capital and convertible bonds. Other financial hypotheses can also be optimized by the computerized analysis."

Jan 1, 2014

By K. G. Philo, R. C. W. Webber-Youngman

mining, where data-driven decision making optimizes resource extraction, enhances safety, and ensures sustainability. The adoption of digital technologies like artificial intelligence (AI) and the Internet of Things has amplified the importance of digital information. However, the integrity and security of this information are paramount, leading to the exploration of blockchain technology as a potential solution for secure digital value exchange in mining. This research examines blockchain's capabilities, drawing insights from its applications in sectors like banking, government, healthcare, and entertainment, and evaluates their relevance to mining's core value chain processes. The study identifies blockchain's distributed ledger technology, cryptographic security, and decentralization as unique advantages that can revolutionize mining by enhancing transaction speed, reducing costs, and improving supply chain transparency and compliance with sustainability standards. Blockchain's transparent and auditable records can enhance business transparency, fostering trust among stakeholders, including investors and regulatory bodies. The technology's consensus mechanisms and smart contracts further promote trust in collaborative ventures. This research provides a foundational understanding for decision-makers in the mining industry to evaluate blockchain's feasibility and potential return on investment, guiding strategic planning and resource allocation for blockchain applications. By leveraging blockchain, mining companies can optimize operations, improve sustainability practices, and establish a robust foundation for future growth, positioning blockchain as a transformative technology in the sector

Jul 10, 2024

By S. J. Baumgartner

The ferromanganese industry is under pressure to deal with the slag arising from the production of ferromanganese, which is discarded in landfills or slag heaps. This material poses an environmental and health risk to surrounding ecosystems and communities, and disposal costs are increasing. Ferromanganese slag contains an appreciable amount of residual manganese metal, which can be exploited. Previous work has shown that the slag can be leached fully, while rejecting the silica to a residue. The methods that were investigated to recover manganese from the leach solution included hydroxide precipitation to upgrade the leach solution followed by manganese carbonate precipitation to produce a pure manganese carbonate product or a manganese carbonate furnace feed material, which would be recycled to increase manganese recoveries in the production of ferromanganese. In addition, electrowinning of electrolytic manganese dioxide from the leach solution was studied. The methods were compared in terms of selectivity, costs, and product quality. Co-recovery of the leach residue, which is a potential cement additive, is discussed. Among the methods investigated to upgrade the pregnant leach solution, hydroxide precipitation utilizing ammonia to adjust the pH appears to be the most effective in removing major impurities such as iron, aluminium, and silica to less than 1 ppm. The manganese carbonate and impure manganese carbonate furnace feed products met quality specifications. However, although the production of these materials was technically viable, the large amounts of base reagent that were required to raise the pH, and the associated high operating costs, rendered the process uneconomic. An optimization study was therefore carried out with the primary objective to determine the ideal acid amount to be utilized in the waterstarved digestion stage, thereby decreasing acid and base consumption while optimizing the quality of the pregnant leach solution, and producing a leach residue that contained <1% Mn. The outcome was an economically viable process. Additional benefits included an increase in the manganese content of the impure manganese carbonate furnace feed material, and a substantial reduction in the dilution of the pregnant leach solution, thereby maintaining high manganese concentrations that rendered the solution viable for electrowinning of electrolytic manganese dioxide, the production of which yielded a current efficiency of 74%.

Jan 1, 2014

By F. T. Cawood, C. C. Birc

The South African mineral resource royalty system, initiated in 2010, employs a hybrid ad valorem approach tied to profitability ratios. This rate is then applied to the total revenue from mineral sales. In this article we explore how the profitability ratio in the mineral resource royalty formulae interacts with the gold tax formula as applied to South African gold mines, devising a strategy for cut-off grade optimization. The study focuses on nine narrow, tabular-reef (Witwatersrand) gold mines. The approach involves a mixed-integer cut-off grade optimizer utilizing Excel Solver, incorporating relevant royalty and income tax formulae. Different mineral resource royalty cost scenarios were examined. Ignoring these costs in the break-even analysis lowers the cut-off grade but slightly boosts profits compared to considering expected costs. The developed optimizer model, recognizing the profitability aspect of the mineral resource royalty and income tax formulae, yielded a 6% lower cut-off grade than the base case. This is significant for increasing mine life. While the profit differences are marginal (0.2% compared to the break-even base case), substantial improvements were noted: a 6% increase in stope tons above cut-off grade, and a 4% rise in total revenue. Enhanced resource utilization (3% extra gold kilograms) reduces necessary development and overall costs, allowing for a reduction in the cut-off grade and ultimately, more profit.

Aug 8, 2024

By C. Musingwini, A. S. Nhleko, P. M. Muke

Open-pit mine planning includes the determination of a long-term open-pit mine production scheduling (OMPS) plan. The OMPS plan is generally a three-dimensional (3D) block extraction sequence that seeks to maximise the net present value (NPV) of future cash flows, while complying with technical and operational constraints. The OMPS problem is computationally complex because it involves the analysis of large datasets, while simultaneously incorporating both multiple hard and soft constraints. The OMPS problem has been solved using deterministic or exact approaches, heuristic, and metaheuristic models. When compared to heuristic and metaheuristic models, deterministic approaches tend to take much longer to solve the OMPS problem when the number of constraints increases. Therefore, this paper presents a metaheuristic model which utilises a genetic algorithm (GA) framework to solve the OMPS problem. The GA-based model was applied to the Newman1 and Zuck Small mining instances, which are publicly available from the online MineLib database. The NPVs for the OMPS plan generated using the GA-based model for the two case studies were compared to the best-known published MineLib solutions obtained using the TopoSort heuristic model at the time of this study. For the Newman1 instance the equivalent annual NPVs were approximately US$6.6 million for the GA-based solution and US$5.1 million for the TopoSort solution. For the Zuck Small mining instance, the equivalent annual NPVs were approximately US$99.8 million for the GA-based solution and US$102.5 mil for the TopoSort solution. These results show that the GA-based model produced comparable solutions to some of the best-known solutions, thus, indicating strong potential application of GA-based models to solve OMPS problems.

Sep 1, 2021

By B. G. Russell

A wide range of minerals is found within the Republic of South Africa, many of which are exploited to a greater extent than in similar deposits found elsewhere. It is often asked whether this is atributed to the high grade of the ores encountered in this country, or whether such factors as fiscal and Infrastructural incentives create an economic climate that has en bled the mining industry to successfully extract and market minerals at a profit. This paper views South Africa&apos;s mineral resources in a regional and global context In an attempt to place the country&apos;s geological wealth in perspective. It represents the author&apos;s own Views, and not necessarily those of the Department of Mine al and Energy Affairs.

Jan 1, 1986

By N. V. Moraka

Mining companies are required by law to improve representation of women on their boards. However, progress in this regard has been slow. Boards of directors play an important role in formulating corporate strategy, risk assessment, and effective governance for sustained financial performance. Although some women have successfully maintained board seats, others have been unable to do so. It is difficult to ascertain whether women are being appointed as tokens to satisfy social pressures, as little is known about the experiences of women board members in mining, which may inform or refute tokenism. In-depth interviews were conducted with 20 women and 16 men across six listed mining companies. Thematic data analysis revealed evidence of tokenism where recruitment to mining boards is compliance-based and is informally driven by influential directors. Adverse boardroom experiences that further confirmed tokenism were reported by women, such as disregarding their contributions, condescending behaviour, and limited influence in decision-making, while other women sought to validate their competence and oppose social exclusion. This study recommends that a strong Board Chair and nominations committee is critical to ensure sustainable recruitment of competent and suitably qualified women; and further foster a culture of inclusivity and valuing gender-diverse boards.

Dec 13, 2023

By B. I. Matshediso, J. Kaavera, E. Shemang, T. K. Dintwe, L. S. Teseletso, K. Fichani

The minerals sector continues to draw attention from policy makers who would want to see both old and new mineral projects add value to the minerals in the host country. The current technological development in the leaching of manganese oxide ores to produce a high-purity manganese sulphate monohydrate, a compound that is used in the manufacture of batteries for electric vehicles or long-life storage cells for the renewable energy market, has led to junior mining companies spearheading this technology in new projects across the globe. In this paper, we researched the high-purity manganese sulphate monohydrate project pipeline and used projected production volumes and C1 cash costs to construct the industry supply curve for six projects, including the K.Hill project owned by Giyani Metals Corporation near Kanye, in the southern part of Botswana. The aim was to determine the ideal conditions that would provide a comparative advantage for further local value addition to high-purity manganese sulphate monohydrate and to the end user product. The results showed that while the estimated C1 cash costs would place the K.Hill project as the second highest cost producer from among five projects, it would nonetheless have healthy profit margins due to the high projected price of high-purity manganese sulphate monohydrate. The study recommended policy options, which, if implemented, could further encourage the exploitation and value addition of battery metals in Botswana.

May 27, 2025

By B. Maybee, J. Venter, J. Wesseloo

The selection of open-pit slope angles involves high-value decisions with small changes in slope angle, often representing significant changes in net present value. The existing methods used to define design acceptance criteria have evolved from factor of safety to probability of failure (P[F]) to risk consequence to risk frontiers, which represents current state of the art. Current design acceptance measures are based on references to published tables representing the experience and judgement of their authors, who did not specify the purpose of the measures contained therein. As the purpose of the published design acceptance criteria is not specified (i.e., definite stability, marginal stability, optimization, etc.), such tables cannot be used to achieve optimum slope angles that maximize profitability. This paper develops a design acceptance criterion that maximizes profitability by defining a formulation for optimum risk that balances expected risk and reward. The model developed is titled the Mining Risk Model (MRM), and is applied to open-pit slope angle selection through an equation for optimum probability of downside (P[D]O) that balances the upside or opportunity, the P[F], and the downside impact. This formulation for optimum risk is unique, as many authors have presented objective functions for their risk models that can be optimized, but none of the sources reviewed contained a formulation for optimum risk. The MRM is sufficiently flexible to allow the design performance measure that drives P[F], and hence P[D]O, to be selected based on the intended goal. Furthermore, the essential information that must be known to quantify optimum risk is defined. This allows users to determine what information to collect for optimum risk decisions. A further benefit of the MRM is that slope angle decisions and pit shells can be ranked to select the best option, and a threshold is provided that separates acceptable from unacceptable decisions. Finally, the workflow and information required to determine optimum risk are presented.

Sep 9, 2024

By M. Hermanus, N. Coulson, N. Pillay

"SynopsisThis paper assesses the effectiveness of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH) and its potential to improve mine health and safety in South African mines. Developed by the Chamber of Mines, which represents the majority of the country&apos;s large scale mining employers, MOSH was devised to accelerate progress towards achieving health and safety milestones, which were set by tripartite agreement in 2003. The paper documents and builds on the findings of a study conducted by the Centre for Sustainability in Mining and Industry (CSMI) in 2011 that evaluated MOSH strategy, structures, and process of implementation.The study found that MOSH operated across the mining sector, was directed and dominated by experts and, despite best efforts to include other stakeholders, was led by employers. Statutory worker health and safety representatives and structures were not integrated into the complex change process developed by MOSH. The Mine Health and Safety Inspectorate (MHSI) and organized labour were ambivalent about direct involvement in MOSH and preferred regulatory measures to enforce the participation of mines. MOSH interventions were not targeted at mines with a poor health and safety record, and MOSH lacked a baseline from which to track impacts on sector-wide health and safety performance. The leading practices most widely adopted by mines were designed to improve, rather than fundamentally alter, existing practice. Although the depth of engagement with MOSH among stakeholders and on mine sites varied, mining companies, labour representatives, and the Mine Health and Safety Inspectorate (MHSI) saw the programme as significant.IntroductionIn 2011, the Chamber of Mines commissioned the Centre for Sustainability in Mining and Industry (CSMI) to evaluate the progress and effectiveness of the rollout of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH). CSMI, based in the School of Mining Engineering at the University of the Witwatersrand, is an independent research centre conducting health and safety research relevant to all major stakeholders in the mining sector. The purpose of the evaluation was to identify the factors that enabled or hampered the adoption of new technologies or practices. The timing of the evaluation, two years before the deadline for the 2013 safety and health milestones, allowed time for adjustments to be made. This paper summarizes the results of the evaluation and includes further analysis and discussion of the nature of the programme and the conditions that act to advance it or it hold back."

Jan 1, 2015

By T. Grewar

"South Africa is a water-scarce country, rated as one of the 30 driest countries in the world. Worryingly, government expects water demand to outstrip supply as early as 2025. The South African government believes that substantial volumes of water can be made available through the reuse of treated mining-impacted water. Currently, however, large volumes of treated mining-impacted water are produced, often with no end use in mind other than discharge or disposal, when these treated effluents may have further uses in applications which are currently and unnecessarily using high-quality water. Treating the wastewaters to levels that meet ’fitness-for-use’ guidelines for alternative applications such as agriculture, sanitation, or industrial processes will reduce the treatment cost burden compared to potable water production. The primary conclusion of this review is that the most suitable option for re-using treated mine-impacted water is in agriculture, for irrigation of crops (food, forage, or energy crops), which currently and unnecessarily makes use of the majority of South Africa’s high-quality resources or potable water. Other findings include the realization that although guidelines and legislation for water re-use in South Africa exist and are readily available, they tend to be contradictory and confusing in many cases. It is imperative that these ambiguities and incongruities in the available guidelines and legislation for water re-use be clarified and updated swiftly IntroductionSouth Africa is a water-scarce country and is currently rated as one of the 30 driest countries in the world, with an average rainfall of 490 mm/a, approximately half of the global average. As an indicator of the degree of regional variability in South Africa’s water supply, it has been shown that 70% of all runoff is from approximately 20% of the land area. Regardless of the water scarcity faced in South Africa, our water conservation track record is poor, with an average consumption of 280 L/d per person, almost 60% more than the global average of 175 L/d per person. Around 40% of this allocation is utilized in watering lawns and gardens (Zhuwakinyu, 2017).The South African government predicts water demand to outstrip supply as early as 2025. On an international scale, the situation appears just as dire, with the United Nations High Level Panel on Water (HLPW) expecting a 40% water shortfall by 2030, which may affect up to 1.8 billion people based on current water demand trajectories (Zhuwakinyu, 2017)."

Mar 1, 2019

By P. W. J. Delport, E. Du Toit

Investing in a mining venture can be risky and stakeholders need transparent, unbiased reports to understand the Mineral Resources and Mineral Reserves a mining company holds. Readability and textual choice can be used consciously to manipulate perceptions, or it can be done unconsciously. This exploratory study investigates the readability and textual choice of supplementary Mineral Resources and Mineral Reserves Reports of companies listed on the Johannesburg Stock Exchange. The results indicate that narrative manipulation occurs in these reports through word choices that make the reports difficult to read, as well as specific narrative selections. This reduces the informational value of the reports. The results of the study will be useful to various stakeholders, such as mining company management, investors, investment specialists, financial analysts, and even employees and the general community, who all use these reports to make important decisions. It is also useful for the preparers of the Mineral Resources and Mineral Reserves Reports, Competent Persons, and other technical specialists to be aware of readability and that certain textual choices can affect the interpretation of these reports. It is recommended that bodies such as the JSE and the SAMREC and SAMVAL Code committees consider adding a plain language requirement to regulations, guidelines, and codes to ensure transparent, unbiased, and objective reports.

Mar 1, 2021

By M. Onifade, B. Genc, P. O. Akinseye, M. Fourie, K. O. Said

Coal is mined by both surface and underground methods and its extraction is normally characterized by numerous hazards that can lead to catastrophic accidents, which result in devastating effects such as injuries or fatalities, damage to mining assets, and destruction of mineral resources. These hazards exist due to the ability of coal to support combustion and its association with toxic, flammable, and explosive gases. Underground coal mining entails higher safety risks than opencast coal mining, chiefly because of issues relating to mine ventilation and mine collapse. Furthermore, coal mine collapses mostly occur due to crumbling of mining supports, especially in room and pillar mining systems. To avoid such adverse occurrences, safety management systems need to be in place. This study reviews the various technological safety systems and principles that are used for safe-rescue and self-escape of miners in underground coal fires, particularly in South Africa, using data obtained from Mines Rescue Services in Carltonville, South Africa. The outcome of the review shows that practising safety culture has been given priority across many South African underground coal mines through setting up safety management systems and encouraging workers to stay committed to safety principles.

May 2, 2022

By H. E. James

Much has been said and written about the need to reduce South Africa&apos;s dependence on gold. To compensate for the decline in the country&apos;s foreign-exchange earnings resulting from the phasing out of gold, which must inevitably occur at some future date, a far higher priority will have to be placed on the mining, beneficiation, and export of the 59 other mineral commodities produced in South Africa. The basic strategy of the mining and metallurgical industries should be to move from the traditional approach of establishing a resource base to the establishment of a market base; to turn from production orientation to market orientation; and to rely less on exploration and economies of scale and more on process innovation and product development. The enthusiasm, entrepreneurial spirit, and commitment of the leaders in the mining and metallurgical industry will clearly be of decisive importance in the establishment of new industries for the beneficiation and export of added-value mineral-based products. The State can make a significant contribution by the provision of a welldeveloped and efficient infrastructure, including rail and harbour facilities, communications and health services, roads, and of electricity and water supplies. In our search for a new development strategy for the beneficiation and export of South Africa&apos;s minerals, we need to recognize that no one nation has all the mineralresources that it needs. Commercial and strategic manipulation of mineral supplies should no longer be tolerated. The future of the human species lies in international cooperation and in a greater understanding of the limitations of the world we live in.

Jan 1, 1985

By L. Schernikau, W. H. Smith

Oil, coal, and gas account for approximately 80% of global primary energy, but only a portion of total airborne CO2 eq (approx. 35% at GWP20 to 65% at GWP100), even though they account for 95% of total measured CO2 emissions. The benefits of these energy sources, as well as their related costs, are not all incorporated in current energy policy discussions. Global greenhouse gas policies must include documented changes in measured airborne CO2 eq to avoid spending large amounts of public funds on ineffective or sub-optimal policies. The authors examined airborne CO2, which is less than half of emitted CO2, as well as reported CH4 emissions and the global warming potential of CH4 as published by the IPCC for coal and natural gas. The surprising conclusion is that surfaced-mined coal appears ‘better for the climate’ than the average natural gas, and all coal appears beneficial over LNG. Therefore, current CO2-only reduction policies and CO2 taxes are leading to unintended consequences and the switch from coal to natural gas, especially LNG, will not have the desired impact of reducing predicted future global warming; in fact, quite the contrary. A large portion of anthropogenic global warming is attributed by the IPCC and IEA to CH4, but it must be noted that CH4 emissions from natural sources and from agriculture account for approximately 40% and 25% of annual global CH4 emissions respectively. Energy accounts for about 20% of documented CH4 emissions. CO2 contributes only approximately 35% of annual airborne anthropogenic GHG emissions after accounting for CH4, over a 20-year horizon. At a 100-year horizon, the contribution of CO2 increases to approximately 60%. Energy policies that do not consider all GHG emissions along the entire value chain will lead to undesired economic and environmental distortions. All carbon taxation and CO2 pricing schemes are incorrect and need to be revised. At IPCC’s GWP20 an approximately 2%1 higher loss of CH4 across the value chain prior to combustion of natural gas versus coal will lead to ‘climate parity’ of coal with natural gas. According to public data, natural gas value chains have high CH4 and undocumented CO2 losses. On a global average, using only IEA-documented CH4 data, natural gas emits approximately 15% more CO2 eq than surface-mined coal, over a 20-year horizon. This difference will increase as the use of shale gas and LNG expands. Investors should support all energy systems in a manner that avoids an energy crisis, including intermittent renewable energy systems where they make sense. If CO2 emissions need to be reduced, one of the most effective ways would be to install ultra-supercritical power plants with CCUS technology. However, the undisputed benefits of increased CO2 concentrations in the atmosphere because of its promotion of photosynthesis and plant growth effects (fertilization) need to be considered in energy policy decisions as well. The authors suggest that future research and development should concentrate on reducing net emissions from fossil fuel power plants and providing cost-effective and reliable new conventional power generation capacity, utilizing clean coal and clean natural gas technology.

Mar 2, 2022

By M. H. Rogers

Coal has been at the forefront of mankind?s drive to improve his quality of life and also for sustainable development, from the Industrial Revolution onwards. The international coal industry today is large, with some 3,7 billion tons being produced and consumed in 1997. South Africa is an important participant in the coal industry, selling some 220 million tons in 1997 of which 64 million tons were exported. It is the second-largest thermal coal exporting country in the world. Despite the size of the world coal industry, it is not immune to change. The address examines growth projections for the industry and the change drivers that will impact on it in the future. Environmental pressures, the most important of which being the climate change debate, the Kyoto Protocol arising from this debate and the development of clean coal technologies, to reduce the impact of coal production and usage on the environment are considered. Other major change drivers considered are competition from other sources of energy and that between coal producers, the deregulation of the electric power industry, corporate restructuring and for the South African producer, legislative reform. The declining (real term) coal price, the consequent squeeze on margins and the need for producers to actively contain costs is covered. Technology has, in the past, been the driver behind the growth and change of the South African coal industry and its future role in ensuring that coal is the fuel of choice for continued improvement in standards of living and economic development is addressed.

Jan 1, 1999