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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 P. Sharma

Longwall panels facing wind blasts have been investigated at both Newstan and Moonee Collieries in the Newcastle Coalfield under the Wind Blast Project of the School of Mining Engineering, The University of New South Wales. The fluid mechanics involved in the compression and expulsion of air during wind blasts have been defined and the overpressure and air velocity time histories utilized to determine the wind blast parameters and define the relationship between them. The characteristics of wind blasts pressure pulses in mine roadways show some similarity with transient phenomenon like air blasts from explosives and shock waves from the failure of pressurized vessels. The peak wind velocities in roadways, however, exhibit marked deviations from theoretical predictions based on compressible fluid flow and Rankine-Hugoniot relationships applied to goaf air displacement and panel geometry. Peak overpressures and wind velocities have shown a positive correlation with the areas of goaf falls, with the values peaking off for larger areas. The field investigations have helped the mine management in risk assessment and in evaluating the success of induced caving by hydrofracturing to mitigate the hazard.

Jan 1, 2004

By B. W. Lee, P. O?Shaughnessy

The practice of manganese ferroalloy smelting has traditionally been based on utilising oxide ores which typically contain a high level of manganese. This preference for oxides has even been extended to the modification of natural carbonates into nodulized oxides. However smelting practices developed over the past 30 years have created a market for natural manganese carbonate ores, driven in part by the unique properties that this type of ore can offer. An understanding of the mineralogy of carbonate ore and its thermal properties has provided important information which enables furnace operators to take full advantage of the chemical differences. However changes to traditional operating practices have been necessary. Once furnace operations using natural and unmodified carbonate ore have been mastered, the unique chemical features of manganese carbonate ore are able to contribute, not only to new product development, but also to cost savings. The use of natural manganese carbonate ore is now a well-established aspect of the industry. The sustained increase in demand for carbonate ore worldwide over the past several years confirms acceptance of its quality. There are effectively few limits to its successful use.

Jan 1, 2004

By H. S. Marshall

Optimum Colliery is an opencast strip mine producing 18Mt of bituminous coal per annum for the export and inland markets as well as for domestic power generation at the Hendrina PowerStation. Coal is exposed by four 60m3 and four 11m3 walkingdraglines and transported from the open cuts to the processing plants by twelve 130 ton coal haulers. Overburden and interburden areas are drilled by nine 250mm-diameter rotary drill rigs. Until 1997 all surveying tasks were conducted by electronictotal stations requiring accurate control points from which line-of-sight XYZ readings could be taken. In 1997 a GPS system was introduced which consisted of a fixed base station and two rovers. The rovers were able to perform most of the survey tasks assigned to total stations. In addition, two overburden drills were equipped with blasthole drill navigation systems, which includes the drill monitoring and material (strata) recognitions system. The rest of the drilling fleet will also be equipped with GPS systems. Blasthole positions are designed in the office based on survey and geological/geophysical information and transmitted via radio link to an industrial PC on the drills. Together with GPS positional data, both the planned and actual drill positions are displayed on an LCD screen. This eliminates the need for surveyed hole positions to be staked before drilling, and for actual hole positions to be surveyed after drilling. As holes are drilled, performance and rock property data transmitted back to the office. Future applications will include GPS monitoring of dragline positions and pad elevations. GPS receivers on the draglines will utilize the existing base station to calculate and transmit XYZ co-ordinates. Another application will be locating of boreholes in the field prior to the pumping of specified explosive charges into the blastholes. Charging instructions for each blasthole will be loaded into the computer on the explosives truck which will be equipped with a GPS system for hole identification.

Jan 1, 1998

By Stefan Basista, Janusz Tomala

Modern constructions of electric ferroalloy furnaces are still based on applying in the lower "liquid" areas the standard carbon materials. What can be illustrated by the experience from several years, in the part of tap hole, hearth walls and bottom, is that so-called carbon or semigraphite microporous materials are successfully being applied. These materials, compared to the standard carbon, give better resistance to the attack by liquid metal and other wear factors. Generally this group includes materials characterised by considerable share of pores of diameters below1µm (significantly exceeding 90% of total porosity). The microporosity increases the resistance to the infiltration of the liquid metal. The effect of microporosity can be obtained by introducing silicon (or its compound) additive to materials based on electrically (or gas) calcined anthracites, electrographite and binder. Moreover, by introducing other ceramic additives, the microporous materials are more resistant to dissolution by the liquid metal. Observing the trends of "improving the materials" in the last years, it is clearly seen that the share of non-carbon additives is bigger and bigger, so we can reasonably speak of rather carbon-ceramic materials. In this paper, the survey of the most important quality criteria, which must be met by the carbon furnace linings, as well as the new testing methods will be presented.

Jan 1, 2007

By M. Rakoma

Following the blasting fatality on 17 December 2009, Landau Colliery was forced to change from the blasting practices that had been utilized since the start-up of the mine. Since then, attempts have been made to optimize blasting results. The challenge is rooted to the mining environment - during the early life of the mine, mining took place in virgin areas, whereas currently mining is taking place in areas overlying old underground bord and pillar workings. The underground bord and pillar workings aggravate phenomena such as spontaneous combustion, hot holes, and sinkholes. The 2009 fatality was attributed to hot holes causing premature detonation. Landau has been struggling with poor results from their overburden and coal blasts; leading to poor fragmentation of overburden and the PI parting that lies between the No.1 and No.2 coal seams. An extensive literature survey was completed in order to identify possible alternative solutions that could be evaluated for this unique mining environment, which demands a high degree of caution during mining to ensure factors such as dragline stability and personnel safety. The literature survey confirmed that the previous blasting technique, which was mainly characterized by air decking, was indeed the more efficient, although it was deemed unsafe because of the possibility of hot holes and the high sensitivity of detonators. Potential modifications to the blasting technique were modelled in a Microsoft Excel simulation that was available from the mine, and pit visits were conducted in order to determine whether implementation would be a problem. From the model it is evident that results can be improved by changing the current burden and spacing ratio. Visiting the pit revealed that the tie-in pattern and drilling inaccuracies are contributing to problem areas.

Jan 1, 2013

By E. V. Lilford

Valuators of mineral properties are faced with a range of valuation methodologies, the most important of which are grouped under the headings of the market approach, the cost approach and the income approach. The way in which value is defined and the detail of the different valuation methodologies is examined here. This paper aims at documenting the variety of valuation procedures and applying each method to a variety of gold projects and comparing the outcomes. Any decision to apply a valuation technique will depend principally on the stage to which the project has been developed. The valuation approach to a greenfield project will be substantially different from that applied to a well-drilled, extensively explored mineral property. Furthermore, a valuation exercise may produce different outcomes for the same gold project depending on which method is applied. In order to investigate the variability in valuation methods and to explore the outcomes of different approaches, a series of five gold projects was analysed. The projects differ in regard to levels of capital application, infrastructural setting, depth below surface, in situ grade, and the stage of development, and were valued using the different methods. The most critical aspect of any valuation is the capacity of the valuer to identify the salient issues and ensure that they are incorporated into the valuation. The danger of simply applying ?black box? solutions to valuation problems without a full understanding of the parameters and the areas of uncertainty is emphasized. The importance of the valuator?s experience, insights into best practice and the ability to recognize and submit to the requirements of compliance within the minerals industry is among the most important characteristics of a valuer.

Jan 1, 2005

By Y. Mitani, F. Vallier, T. Esaki

Shear-flow coupling tests are conducted using an original apparatus, and a shear-flow coupling model using Geographic Information System (GIS) is developed in order to evaluate shear-flow coupling properties of a rock joint. Shear-flow coupling tests indicate that the hydraulic conductivity of joint once decreases, and then rapidly increases at the shear displacement near the peak shear stress. The proposed model simulates the test results relatively well. However it indicates that it is difficult to apply the local ‘cubic law’ model in the initial shear stage, in which the change of selective flow path is remarkable. Scher-Fliess-Kopplungsversuche werden mit einem neuartigen Versuchsgerät durchgeführt und mithilfe von Geo-Informationssystemen (GIS) gedeutet, um so ein Modell für die Scher-Fliess-Kopplung in Gebirgstrennflächen zu entwickeln. Die Versuche zeigen, dass die hydraulische Leitfähigkeit zuerst abnimmt, dann aber schnell wieder zunimmt sobald die maximale Scherfestigkeit erreicht ist. Das vorgestellte Modell bildet die Testergebnisse relativ gut nach. Es zeigt auch, dass es schwierig ist, das lokale Cubic Law im Initialstadium der Scherbeanspruchung anzuwenden, in dem die Variationen selektiver Fliesswege gross ist. Les essaies hydro-mécaniques couplés en cisaillement sont réalisés grâce à un appareil éxperimental prototype et un modèle de couplage hydro-mécanique utilisant le S.I.G (systeme d'information géographique) développé dans le but d'évaluer les propriétés hydro-mécaniques des joint rocheux. Les résultats indiquent que la conductivité hydraulique des joints décroit puis augmente rapidement en se rapprochant du pic de cisaillement. Le modèle proposé simule relativement bien les résultats expérimentaux ; mais indique également qu’il est difficile d’appliquer localement la loi cubique au début du cisaillement où, les changements d’orientation dans le réseau d'écoulement sont considerables.

Jan 1, 2003

By I. V. Lunkin, E. B. Rakishev, B. R. Rakishev

In mining the method of statistical tests is used by solving of problems, exposing to influence of random factors. Such problems are: rational selection of equipment set; co-ordination in time of different processes; interaction between some processes and kinds of works. Usually it is considered that Monte Carlo method proves its value in the first place in that problems, which allow theoretical-probabilistic description. Analysis of numerical solution of mining-economic problems shows that the method of statistical tests may be used successfully by solving of determinate problems, which are solved usually analytically or by the methods of mathematical programming. We are talking about the problems of optimal use of resources, expedient placing of equipment, effective use of investments, rational planning of stripping and extracting works, groups of mining enterprises and about different variants of transport problem. In the report possibility of the method use is studied at an example of typical technical-economic problems solving. By solving of these problems the variant of the method with uniform distribution of random quantity had been applied and built-in random number generator of visual modelling system VisSim had been used. By algorithms elaboration it seems very perspective to use combination of the Monte Carlo method with traditional methods of numerical solving of the problems (methods of linear, nonlinear and dynamic programming and so on). Keywords: method of statistical tests, mining-technical problems, diapason of random number sample, efficiency function and its extremum.

Jan 1, 2003

By T D. Sullivan

Risk lies at the heart of all mining and nowhere more so than in pit slope design. Mining is principally about two areas of risk; safety and economics. This paper addresses the main elements of pit slope design and presents a view of the state of the art in terms of safety, design, prediction of performance, success and pit slope management. There has been a recent trend for serious injury and fatalities due to stability in open pit mines. The causes and contributing factors are analysed in relation to geotechnical knowledge, pit slope design and management. Currently there is no standard classification system for mine slope designs and it is considered doubtful if a universal system is possible. Designs are usually formulated in accordance with many different methodologies, various engineering principals and a number of different philosophical approaches, with results often presented in terms of Factors of Safety or Probabilities of Failure. However wide experience has demonstrated that even with apparently detailed engineering investigation and analysis at Feasibility Level, at the Operating Stage mine slope angles are regularly subject to large changes. The general experience is that these changes are ± 5° and 16° overall, which is considerably outside the accepted order of accuracy. For large deep mines these are huge changes and represent significant risks to the operations. The current state of practice in pit slope design is examined for two stages, feasibility and operating.

Jan 1, 2006

This paper addresses the methodology of introducing risk into the development of mine plans for open pit mines. Recommendations are put forward for achieving a risk balance between mineral resource estimates and slope design. A design process identifying criteria for different stages of planning is presented. Business risk is separated from geological/geotechnical risk and procedures to address these within the development of mine plans are suggested. It is concluded that a formal design process improves communication between key decision makers and adds value to shareholders, investment.

Jan 1, 1997

By R. Butcher

Mud rushes are hazardous occurrences that have occurred frequently in mines in South Africa, and have been the cause of numerous fatalities in the past. Mud rush incidents not associated with accidents are believed to be common occurrences that are not generally reported. Many such incidents are probably associated with the operation of chutes and box fronts. This paper describes the conditions necessary for mud rush occurrences, postulated mud rush mechanisms, and methods of combating the mud rush hazard.

Jan 1, 2005

By F. H. Abd EL-Rahiem

A selective dispersion process is presented and the work carried out to find optimum process conditions to minimise the colouring material in ground calcium carbonate (GCC) is described. The feed material is the overflow product from a hydrocyclone which results from using a Denver Attritioning machine with semi-autogenous grinding for one hour and a 1:1 ore/water ratio. By using sodium silicate (SS), with pH 9 and pulp density 5%, the iron content (as colouring impurities) is decreased from 0.21% in the original concentrate to 0.12% in the final concentrate. The degree of whiteness reached is improved to 85% from 63% in the original material. However, by using hexametaphosphate (SHMP) at pH 10 at the same pulp density, the iron content decreased to about 0.073% and hence the whiteness degree increased to about 96%.

Jan 1, 2004

Ongoing rockpass problems on mines within the South Africa region, prompted AngloGold Ashanti to embark on a risk assessment of major rockpasses. This commenced with the collection of relevant data to identify gaps in the available knowledge and identify existing problems. This was followed by an assessment of rockpass layouts to determine existing and potential interactions with other excavations. An initial risk assessment has been completed and the rockpasses have been ranked in terms of their risk profile. The lack of geological data and an easy and reliable method of surveying rockpasses have been identified as problem areas. Shortcoming is terms of rockpass management procedures have also been identified. Further work is required to quantify the risk in terms of probability of occurrence and consequences.

Jan 1, 2005

By R. Boom, K. C. Mills, S. Riaz

This paper details the recent trends in slag-related research from 1999 to 2003. The trends in thefollowing are outlined: • Annual publication rate • Geographical origin of the work • Nature of the research (e.g. thermodynamics, kinetics) • Nature of the slag studied. This study has revealed that slag research in the USA and Europe has decreased to about a half over the last 20 years and that there has been a significant decrease in Japanese research in this area in recent years. However, these decreases have been offset by significant increases in Chinese and Korean research activity. There has been a significant increase in the amount of work carried out on the recycling and environmental aspects of slags in recent years.

Jan 1, 2004

By A. V. Peake

Continuous Mining presents an opportunity to extract reef in the stope ?continuously? by integrating the drill and blast activity using propellants or low energy charges. To date, the majority of effort spent on Continuous Mining systems has focused on developing an effective rock breaking process (micro breaking process), and to some extent, eliminating fumes and dust. The perceived benefits of applying low energy charges have been identified as: ?Concentrated mining yielding face advances of 40 to 60 m per month ?Lower stoping widths through better-controlled breaking ?Increase in the advance per blast ?Increase in labour productivity ?The potential to mine reefs where specific conditions make conventional mining uneconomic e.g. reefs with shales in the immediate hangingwall. However, the ability to successfully use low energy charges to create a ?Continuous or Semi-Continuous? mining method is dependent on overcoming the following challenges. ?Improving reliability of rock breaking. This is dependent upon achieving:? Improved drilling accuracy, and? Successful stemming or gas confinement, particularly in fractured rock ?Reducing gas and dust levels ?Reducing high costs. Through the research carried out in Future Mine, many different low energy rock breaking methods and systems were investigated. Whilst detailed results cannot be published here, the guidelines for overcoming low energy rock breaking challenges are discussed.

Jan 1, 2003

By M. D. Mwema

Copper oxide ores deposits in the Katanga province of the Democratic Republic of Congo (DRC) contain at variable level cobalt oxide minerals. In contrast to copper oxide minerals which readily dissolve in the sulphuric acid solution, the cobalt oxide bearings are difficult to dissolve, especially if cobalt is present in the third oxidation state (Co2O3). This species become soluble after reduction of Co+3in Co+2. In practice, the use of reducing agent is therefore necessary in order to transform the insoluble minerals into soluble cobalt sulphate species. The following reducing agents are currently used at the Shituru plant: ferrous ions, which are present in leach solutions, pulverised copper or sodium meta bisulphite (MBS). Due to the high consumption of reducing agents (0,8 t MBS/t of solubilized Co; 1,2 t Cu/t-Co), cobalt production is expensive. The use of sulphur dioxide as reducing agent was then investigated in order to reduce operating cost. This reagent also presents the advantage of sulphuric acid production during the leaching process. It has been added in the leaching vessel (tank). From the laboratory and industrial tests, selective leaching of cobalt (78%) has been performed. The cobalt leaching kinetic depend on sulphur dioxide dosage. Dissolution of copper, iron and manganese remained very low. No emanation of SO2 gas was observed during the process.

Jan 1, 2002

By M. J. Nicol

Mr Vegter has analysed, in some depth, the approximations made in the treatment of the kinetic data presented in the original by ourselves (ref.1) and has come to the conclusion that ?under the experimental conditions used by Adams and Nicol (1986) the steady-state assumption was inaccurate?. We are acutely aware of the fact that the experimental method adopted does not permit the attainment of a true steady-state in the elution reactor. However, this does not eliminate the attainment of a pseudo steady-state by a suitable choice of the experimental parameters with the accompanying simplification of the analysis of the data with the aim of drawing the reader?s attention to the most important objective of the paper viz. the effect of various operating parameters on the rate of elution of gold.

Jan 1, 1997

By J. R. G. Williamson

The Mining Division of Iscor, an integrated minerals and metals company, has recently completed a feasibility study for the establishment of a new heavy minerals mine and smelter in the Richards Bay area of KwaZulu-Natal, South Africa. The mine will produce a heavy mineral concentrate containing ilmenite, zircon, rutile and leucoxene which will be beneficiated at a central processing complex close to Empangeni. The ilmenite will be smelted to produce high-grade titania slag and pig iron for export. The ancient dune containing the mineral deposit is located some distance inland of the coastal dunes, and the sands contain a high proportion of extremely fine material which must be extracted ahead of the gravity separation process. Of the 56 million tonnes to be mined annually over the ten-year life of the mine approximately 23,4%?a total of 13,1 million tonnes of minus 45 micron residue fines?will have to be disposed of in a containment facility. The origin of the fine material is from the weathering of amphibole minerals. The remaining coarse sands will be returned to the mined area to re-create the original dune configuration. A number of options for the disposal of the residue fines have been examined and specialised laboratory tests undertaken to determine the deposition behaviour of the fines. The final solution involved the use of a ?sub-aerial? technique for deposition of fine material in a disposal facility. The resulting arrangement will adequately meet technical and environmental criteria. Upon closure after 10 years of operation, the surface of the disposal facility will be returned to sugar cane cultivation The paper refers to the various options considered and describes the problems associated with competent disposal of the residue fines and the development details of the final disposal facility.

Jan 1, 1997

By S. M. Rupprecht

"SynopsisOver the last decade in South Africa, there has been a significant increase in the number of mining operations, both open pit and underground, which use independent contractors to carry out mining activities. Often mine owners will choose the contractor option without fully understanding the consequences of undertaking this option. Traditionally, contract mining has come at a cost premium of about 15% to 20% compared to an owner mining scenario. However, due to the large number of junior mining companies entering the mining arena in South Africa contract mining rates have increased, with cost premiums as high as 50% being reported. This paper looks at the merits of owner mining versus contract mining and describes under what conditions it may be favourable to select the one option over the other. In addition, the methodology of entering into contract negotiations with the objective of establishing a fair and sustainable relationship is discussed.IntroductionOver the last decade in South Africa, there has been a significant increase in the number of mining operations, both open pit and underground, which use independent contractors to carry out mining activities. Surface mining, for example, may use contractors to conduct drilling and blasting operations or load and haul operations. Underground mining may contract out work such as shaft sinking, mining, support, construction work, cover drilling, sweeping and vampings. Common surface operations such as mineral beneficiation, waste disposal, security, and product transport may also be outsourced to contractors.Many companies have a business model that utilizes contractors for the entire mining cycle, maintaining a small head office to provide direction and control. The difficulty with this option is that often mining companies will choose the contractor option without fully understanding the implications."

Jan 1, 2015