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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By C. Sawmliana

Deep-hole blasting operations in opencast mines are always associated with some annoyance to the surrounding areas in terms of ground vibration, noise, flyrock, etc. These become more severe when underground mines run parallel to them. Blasting in opencast mines may pose danger to the underground mines in terms of roof/side failures, damage of water dams, isolation/ventilation stoppings and other underground installations. The paper discusses a case study in India on the impact of deep-hole blasting in Ramagundam Opencast Project ? III on the stability of various water dams of GDK-6B Incline coal mine operating in close proximity. The stability of underground water dams of GDK-6B Incline mine was endangered due to deep-hole blasting at OCP-III. There were 15 water dams in seam 3 and 16 dams in seam 4 of the underground mine. The physical strength tests using a Schmidt Hammer instrument were carried out in all the 15 water dams of No. 3 seam and 16 water dams of No. 4 seam. The test revealed that there is a decrease in compressive strength values of three dams of seam 3, namely 6A, 6B and 7. Theose three dams were also directly connected to the water source. Water seepage was also observed from the surfaces of the three dams. However, they were found to be stable in accordance with their design parameters and damage point of view while considering a threshold value of ground vibration as 25 mm/s. It was found that the value of tensile stress generated by a vibration of 25 mm/s was much lower (i.e. 0.171N/mm2) than the tensile strength of the two weakest concrete dams (1.85 N/mm2). Ten experimental blasts were conducted at different working benches of the opencast mine and the ground vibration data were recorded in roof and pillars near various underground water dams. The maximum value of vibration data recorded was 5.9 mm/s in roof near dam no. 1 in seam 3 with the dominant peak frequency of 22 Hz. No adverse effect on either of the dams was observed after that blast. During the period of study, no deterioration/adverse impact was found in any dam of the mine. Based on the results of the study and the analyses of the data, optimized blast design parameters and explosives weight per delay were suggested for the opencast mine to maintain the safety of the underground water dams. Keywords: Opencast blasting, damage, water dams, underground mine, ground vibration

Jan 1, 2009

By M. Q. W. Jones

This paper presents a compilation of physical properties of rocks from the Bushveld Complex. The database consists of more than 900 measurements each of thermal conductivity and density. The data are well distributed from localities around the Complex and most rock types are well represented. Thermal conductivity and density are shown to vary widely in the ranges 1.8-4.2 W m-1K-1and 2600-4200 kg m-3respectively. Although only 190 heat capacity measurements are available, this parameter is quite uniform for most rock types present, 800-900 J kg-1K-1, except for chromitite, which has a lower average, 750 J kg-1K-1. Rocks encountered in deep platinum mines are particularly well characterized and this has important implications for prediction of mine refrigeration requirements. The heat flux into a semi-infinite region with properties typical of the Bushveld Complex as a function of time is substantially lower than an equivalent model for the Witwatersrand Basin.

Jan 1, 2015

By A. J. Van Der Merwe, J. F. Erasmus

One of the valuation approaches applied to Advanced Exploration Areas and Pre-Development Projects is the so-called ?in situ Mineralization Method? or the ?Yardstick Method?. This method is based on the concept of a known undeveloped Mineral Resource being worth a certain fraction (the ?Yardstick?) of the contained commodity value (?metal in ground?), using commodity prices ruling at the date of valuation. The Yardstick value is derived usually from an average market-based figure obtained from an analysis of recent transactions and is expressed as a monetary value per ounce or per tonne. It maybe modified to accommodate the quality (e.g. grade) and category (e.g. confidence level) of the Mineral Resource/Reserve involved and the time, effort and expenditure expected to be involved in bringing the project to fruition. Some eighteen recent and relevant transactions were analysed, allowing the following general conclusions to be reached: ? a Yardstick with which to value undeveloped PGE mineral resources is likely to range between 0.5% and 2.5% of the in-ground contained metal value ? the expected method of mining (especially with regard to mining costs) and the grade of the mineralization both have a strong influence on the Yardstick ? the status (classification) of the Mineral Resource has some influence on the Yardstick and ? the ruling price of platinum and the regional location of the deposit appear to have insignificant influences on the Yardstick.

Jan 1, 2006

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

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

Jan 1, 2004

By Peter W. Lotz

Contents of: ?Sampling for Cyanide in Metallurgical Processes? ?Sampling at process level of operation ?Sampling at environmental level ?Sample stability and integrity issues ?each citing possible objectives, practical example and reasons for surprises Overall recommendations on sampling plans and procedures to maintain sample integrity

Jan 1, 2005

By L. Archambeault

This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

By M. Magnelöv, Du Sichen, U. Sjöström

An experimental study has been performed to investigate the behaviour and separation of inclusions at the interface between steel and slag. The study has been limited to liquid inclusions because they can be a potential problem in transient situations such as ladle changes in continuous casting of steel. Model experiments with water and silicon oils have been carried out to study the kinetics of separation of simulated inclusions at an interface. The properties of the inclusions and the slags have been varied by using different oils with different viscosities, densities and surface tensions. The effect of temperature of the liquids has also been examined. Measurements of the terminal velocity, rest time and the behaviour of the liquid inclusions at the interface have been recorded using a video camera. It has been found that the inclusions reach their terminal velocity early in the vessel and the experimental velocities differ somewhat from the values evaluated using ?intermediate law?. The results from the experiments have shown that the size of the inclusions has no appreciable influence on the rest time. Droplets of AK50 oil have been found to have considerably long rest time. A water film surrounding the droplet has been expected to be the main reason for the long rest time. The present study has also shown that the viscosity of the oil has certain effect on the rest time, but only to some extent, since viscosity has double functions. A higher viscosity provides higher resistance to the droplet entering the oil phase leading to longer rest time and at the same time damps the lateral movement of the droplet along the interface, leading to easier stabilization and shorter rest time. On the other hand, a high viscosity of the oil phase results in slow dissolution process. It has been concluded that a meaningful model of inclusion separation at the metal-slag interface must take the interfacial phenomena into consideration. Keywords: Inclusions, terminal velocity, rest time, dissolution.

Jan 1, 2004

By J. Hop, A. Støre, T. Foosnæs

The carbon cathode for aluminium electrolysis is also part of the container of the process. In order to understand the behaviour and possible failure of the cathode, detailed material properties under operating conditions are needed. The paper reports experimental studies of bath and sodium in filtration, graphitization with time, loss of strength due to sodium, sodium expansion as function of pressure, as well as creep due to the developed stresses. As an example, sodium and thermal expansion data are used to calculate strain-stress models of realistic cell designs, and possible design weakness can be pointed out. Keywords: carbon, cathodes, sodium expansion, strength, graphitization, creep

Jan 1, 2004

By Yijun Caoa, Xiuxiang Taoc, Zhongbo Hub, Yinfei Liaoa

A new preparation scheme for a difficult-to-float coking coal from the Kailuan Mine, Tangshan, China was investigated. The results showed that grinding followed by column flotation was beneficial for obtaining products with low ash content. The positive effect of grinding on the coal floatability is attributed to the liberation of intergrowths and coal surface improvement. Tests indicated that 10 minutes was the optimum grinding time, and over grinding resulted in a deterioration in flotation performance. With a grinding time of 10 minutes, conventional flotation had potential to yield a product with around 12.42% ash content and 69.15% combustible recovery. Column flotation can reduce the product ash content to 11.15%and increase combustible recovery to 74.47%. Consistently better flotation results reveal that column flotation is more efficient than conventional flotation for such fines.

Jan 1, 2015

By E de Villiers

Several methods exist by which the capacity of a dense media separation (DMS) plant can be improved: 1) Increase the feed rate in spite of efficiency 2) Replace with bigger equipment 3) Add whole new module 4) Replace total plant 5) Change over to four shift/ seven days per week roster 6) Replace with alternative process 7) Increase the availability and utilization Options 1 ? 6 have varying degrees of cost implications. The seventh option would seem to be the easiest. Normally it is also the function of the plant operating and maintenance team to maximize this. Usually higher operating and maintenance cost are associated with an increase in these parameters. A general principle that is applicable to plants and systems is that as the complexity increases, the total availability decreases. By simplifying the flow line it may be possible to reduce cost while at the same time increase the availability and utilization. The typical standard DMS flow line contains components that compensate for the variance in pump performance or for the inefficient recovery of ferrosilicon with additional equipment. Things have changed though: 1) Advanced electronic control and monitoring is possible 2) More efficient magnetic separators are available 3) New more user friendly densifiers are available ORIGINAL FLOW LINE In principle the process consists of four flow lines or streams 1) Ore flow ? the feed is divided into a waste and product stream by means of the separating vessel

Jan 1, 2006

By S. Sun

The equilibrium distribution of Cu, Fe and Ni between Cu-Ni-Fe mattes and Pt alloy was measured as functions of the sulphur partial pressure (pS2), oxygen partial pressure (pO2),temperature and Fe content of the matte. The distribution ratios of Cu, Fe and Ni between matte and alloy were independent of oxygen pressure when the pS2was fixed at 2.5x10-5atm and pO2was varied between 10-15and 10-12atm. The distribution ratio of Cu, Fe and Ni increased as the sulphur partial pressure increased. The Cu and Ni distribution ratios decreased with increasing temperature and the Fe distribution ratio increased slightly over the temperature range of1350?1500°C. For mattes where the proportions of Cu and Ni were kept constant, the distribution ratio of Cu increased as the Fe content in the matte increased. The Fe and Ni distribution appeared to be independent of the iron content in the matte and had a value of 1.2 and 1.6 respectively. The activity of Cu, Fe, Ni in the matte was calculated using a regular solution model for solid Pt-Fe-Ni-Cu alloy. The activity coefficient of Cu, Fe and Ni decreased as pO2and pS2increased.The activity coefficients also appeared to be independent of the Fe content and temperature over the range of 36 to 54 wt% iron and 1350 to 1500°C respectively. Keywords: activity, alloy, matte, thermodynamics

Jan 1, 2004

By M. Olalde, I. Watson

"The consequences of ineffective mine closure in South Africa are evident from the number of abandoned mines and operations on extended care-and-maintenance, the on-selling of mines to less well-resourced companies to close, and increasing illegal mining activities. However, the data to substantiate these observations and provide insight into the underlying issues has not been available. Through the Promotion of Access to Information Act, a list of mine closure certificates applied for between 2011 and 2016 and a list of certificates granted over the same period for all nine regions of South Africa was obtained. From the analysis of this data, we show that the mine closure system as implemented in South Africa is largely ineffective. Although closure certificates are being granted, these are for prospecting sites and small-scale mines, which have a relatively small environmental impact. No large mines of any environmental significance were relinquished over the period under review, with very few applying for closure certificates. Furthermore, the issuing of closure certificates varies significantly between regional offices, with the success rate for applications being generally low and issuing of certificates taking an extended period. IntroductionThere are a number of concerns with the mine closure process as practiced in South Africa, and these have largely been laid at the door of government. Alberts et al. (2017) stress that the legislation generally conforms to international best practice. However, the system is ‘complex and unwieldy’, involving various pieces of legislation and different government departments with overlapping requirements and different interpretations of the law. A further area of concern is the capacity and competence of government to implement legislation. The ‘shortage of relevant mine closure skills and knowledge within the regulator’ was identified by van Druten and Bekker (2017) as a key contributor to unsuccessful closure. Lack of capacity and resources within the regulator has also been highlighted by Botham, Kelso, and Annegarn (2011) and Milaras, McKay, and Ahmed (2014). A recent study of the mineral application process by Corruption Watch (2017) indicates that positions in the regulator have been frozen for many years, leading to a shortage of staff, and that unqualified individuals have been appointed. There is also the perceived reluctance of government to grant closure in order to limit transfer of the liability to the state and delay the inevitable job losses."

Jul 1, 2019

By D. H. Diering

The paper takes the reader into the depths of a modern ultra-deep South African gold mine and gives a perspective on the vertical and horizontal extent of the tunnel networks in such a mine. Depending on the mine design layout employed, tunnels once excavated are subjected to various levels of stress change over their life time, and the support requirements are explained. It is suggested that shotcreting is the only viable ultra-deep level support medium, and after looking at the latest developments, the logistical problems are put forward. In an effort to overcome most of these problems, the South African ultra-deep mining industry embarked on a collaborative research programme in 1998. The importance of tunnelling and in particular tunnel support as a critical technology for future successful ultra-deep level mining is stressed. While not yet fully ?on top of? these problems and challenges, our industry is now fully addressing them and we expect to make significant progress during the next 4 to 5 years.

Jan 1, 2000

By O. S. L. Bruinsma, M. J. Matsela, D. J. van der Westhuizen

The free ligand (FL) model is an intuitive model to calculate the equilibrium concentrations in solvent extraction (SX) based on the distribution coefficient (Kd) at infinite dilution and the fraction of free ligand available for extraction. In this work, the FL model is validated to account for co-extraction of Ni and for designing the extraction and scrubbing sections of Co/Ni separation in a base metal refinery. Cyanex 272 is employed as a selective Co extractant in the process to yield high purity Ni. To enhance the loading capacity of the extractant, 50 mol% of NaOH is pre-loaded into it. Experimental and FL modelling results show that four equilibrium stages are required to purify the 99% Ni feed to a 99.97% Ni raffinate. The 53.59% co-extract with 26.76% free ligand is purified with a reflux scrub of 30 g Co/L in one equilibrium stage to 99.01%, Co in the scrubbed extract. The FL model as well as the Co/Ni/Na-analysis of the aqueous phase confirm that in the scrubbing section, Ni in the extract is mainly replaced by Co. Finally, in the one stage stripper the Co concentration in the scrubbed extract is increased from 5.6 g Co/L in the extract to 30.5 g Co/L that is partially used as reflux scrub liquor.

Dec 11, 2024

A reliable laboratory method to characterize the response of free gold particles to flash flotation conditions has been developed. The test has been performed on free milling gold ores as well as synthetic ores, using either a gravity concentrate or gold powder as the gold source, to assess the floatability of gold particles. Trends in free gold flotation kinetics, as well as size and milling effects, were identified for gold recovery based on the different feed types, reagent dosages, and residence times. It was shown that the ultimate recoveries and kinetic trends of gold particles from the gravity concentrate could be enhanced with increased dosage of collector, potassium amyl xanthate. Interestingly, in comparison to gravity-recoverable gold, recovery from pure Au powders was better in collectorless flotation, and cumulative recovery decreased with higher levels of collector addition. Improved coarse particle recovery appeared linked to increased collector additions for both the gravity concentrate and the pure gold powders. In general, coarse gold particles demonstrated slower kinetic rates thaen the fine or intermediate components incomparable tests.

Jan 1, 2015

By M. van Schoor

Coal remains South Africa?s most abundant and cheapest source of energy, and there is an ever-increasing necessity for optimal and safe extraction of the remaining reserves. Increasing focus on cost-effective mining and zero harm to the environment and miners has resulted in a shift in attitude towards the application of geophysics in local coal mining and exploration. Furthermore, technological advances have contributed to geophysics being embraced more readily by the coal mining industry, compared to a decade or two ago. Predictably, the growing interest in geophysical technologies has also created a need for education and training in the basic principles and application of geophysical methods, as local coal mining companies generally do not have in-house geophysicists. Consequently, the Coaltech Research Organisation?s Geology and Geophysics working group forum compiled a textbook aimed at addressing this need: to produce a guide for applying geophysics to coal mining problems in South Africa. The target audience for such a book would be coal geologists, mine surveyors, mine planners, and other mining staff with limited or no geophysics background. This paper provides a very brief overview of the book by summarizing key sections and selected examples. In doing so, the value of geophysics to solving a range of coal mining and exploration problems is highlighted.

Jan 1, 2014

Tunnelling under squeezing ground conditions poses significant challenges. There are fundamental differences in the choice of support for mining as opposed to civil engineering. This paper reviews ground support strategies that have been used to control large deformations in mining excavations based on field data from five different mines in Australia and Canada. Recommendations are made for improved ground control strategies in squeezing rock conditions.

Jan 1, 2008

By A. M. Milev

A simulated rockburst was conducted underground at Kopanang Mine, previously called Vaal Reefs No. 9 Shaft. The rockburst was simulated by means of a large blast detonated in solid rock close to a crosscut sidewall. The simulated rockburst involved the design of the seismic source, seismic observations in the near and far field, high-speed video filming, a study of rock mass conditions such as fractures, joints, rock strength etc. Knowledge of the site conditions before and after the simulated rockburst was also gained. Some of the important findings are listed below: ?Two areas of damage were identified on the blasting wall: (i) an area of high-intensity damage in which ground velocities of 3.3 m/s were recorded by an accelerometer, which was subsequently ejected in a block of rock, (ii) an area of low-intensity damage where ground velocities of 1.6 m/s were recorded by an accelerometer which remained on the tunnel wall. ?High-speed filming revealed rock fragments being ejected from the wall at velocities in the range of 0.6 m/s to 2.5 m/s. The measurements were taken in the area of low-intensity damage. As planned, no gas pressure was directly involved in damaging the wall of the tunnel. ?The attenuation of peak particle velocities for the main blast in the near field (6 m to 30 m), as a function of distance R, was found to be proportional to R-1.7. ?The simulated rockburst was recorded as a local magnitude ML= 1.3 by the Klerksdorp regional seismic network. ?Peak particle velocities from nearby blasting, recorded on the tunnel wall after the simulated rockburst, were about six times greater then peak particle velocities recorded from the same source area before the simulated rockburst.

Jan 1, 2001

By A. Krause

Shovel-truck systems for loading and hauling material in open pit mines are now routinely analysed using simulation models or off-the-shelf simulation software packages, which can be very expensive for once-off or occasional use. The simulation models invariably produce different estimations of fleet sizes due to their differing estimations of cycle time. No single model or package can accurately estimate the required fleet size because the fleet operating parameters are characteristically random and dynamic. In order to improve confidence in sizing the fleet for a mining project, at least two estimation models should be used. This paper demonstrates that the Machine Repair Model can be modified and used as a model for estimating truck fleet size in an open pit shovel-truck system. The modified Machine Repair Model is first applied to a virtual open pit mine case study. The results compare favourably to output from other estimation models using the same input parameters for the virtual mine. The modified Machine Repair Model is further applied to an existing open pit coal operation, the Kwagga Section of Optimum Colliery as a case study. Again the results confirm those obtained from the virtual mine case study. It is concluded that the Machine Repair Model can be an affordable model compared to off-the-shelf generic software because it is easily modelled in Microsoft Excel, a software platform that most mines already use. This paper reports part of the work of a MSc research study submitted to the University of Witwatersrand, Johannesburg, South Africa. Keywords: simulation, bunching, probability distributions, cycle time, queuing, matching, shovel-truck, OEM.

Jan 1, 2007