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By A. N. Clay

In recent times, there has been criticism of the minerals industry over the lack of quantifiable boundaries between inferred, indicated, and Measured resources. A recent initiative through the United Nations aims to try to converge the mineral resource classification systems. Since the oil and gas industry uses a probabilistic approach to defining reserve boundaries, it is appropriate to introduce a similar statistical methodology for minerals. The Venmyn Variance Tower has been developed based upon traditional statistics to utilize historical and ongoing information in order to quantify variance of geological and chemical parameters and the boundaries and logic for quantitative mineral resource classification. It is proposed that a less than 50% variance from the mean of all sample parameters is required to achieve the classification threshold to define an inferred Resource whereas between 20-10% is needed for an indicated Resource and less than 10% variance from the mean is needed to declare a Measured Resource. These limits are similar to those used by the oil and gas industry, and it is suggested that these thresholds be adopted as an industry standard to ensure consistent quantitative reporting. While this process is intended to use statistics of an orebody to provide quantifiable and defendable boundaries, it cannot be carried out unless the geology of the mineral deposit is understood and the borehole samples can be categorized into appropriate populations for which the statistics are valid. This means that competent geologists are always required to work with and understand the implications of the Variance Tower results. This paper is intended to form the basis of a series of publications that establish a process to take mineral projects along a quantifiable and logical development path. Hence, no specific field example of the practical application of this process is given here.

Jan 1, 2012

By C. Hutton

"SynopsisThe last commodities supercycle (2003 to 2011) was characterized by a belief in volume at any cost, where absolute output was deliberately prioritized over productivity considerations. This practice fuelled overoptimistic forecasting and planning, which in turn contributed to the economic crisis that followed. The sudden collapse of commodity prices has resulted in mining companies scrambling to find the right balance between optimizing current operations and preserving sufficient flexibility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins, while lower ore grades are inflating production costs. Mining companies therefore need to look at the business with fresh eyes, and develop strategies to attract equity capital as traditional approaches are simply not working anymore. This is especially so in the context of a dwindling investor base that continues to demand greater returns, despite a significantly lower appetite for risk. This paper revisits the micro-economic concepts and demonstrates how pressure from shareholders to prioritize output contributed to spiralling costs and value destruction. Practical techniques are described to model cost curves to optimize a Mineral Resource endowment and address the need to rightbalance a business and preserve agility.IntroductionHenry Lazenby (2014) for the Mining Weekly writes, ‘Bruised and battered, the global mining industry today is undergoing a sea change. Practices and policies that might have worked wonders in the past are not as relevant today, and new approaches to running profitable mining operations need to be found.’ One significant practice the mining industry had during the last commodities supercycle (2003 to 2011) was chasing volume at any cost; absolute output was deliberately prioritized over productivity considerations (Goldsmith, 2013). Lazenby contends that in the face of falling and volatile commodity prices, many mining majors ‘across all commodity groups are currently grappling with sagging profits and low company valuations. This is often regarded as the result of the were in pursuit of growing their output at all costs in a high commodity price environment.’ Lee Hodgkinson, KPMG’s Canadian mining industry leader and quoted by Lazenby, says that ‘mining companies are now trying to find the right balance between optimizing current operations and preserving their agility to grasp future opportunities. The runaway costs of building and operating mines have almost squeezed out profit margins [whilst] lower grades of ore are inflating production costs. Mining companies need to look at the business with fresh eyes, and develop strategies to attract equity capital as it seems clear that some of the traditional approaches to the mining business are simply not working anymore."

Jan 1, 2015

By L Tolmay, L Nair

Investor confidence can be compromised when one observes large discrepancies between the SAMREC reserves and the mining plan. It is therefore up to the responsible persons to ensure that all contributing factors get taken into account when determining a reserve declaration. Confounding factors could be further aggravated by large oscillations in the commodity price thus resulting in major changes to the mining plan, if the accepted price was either too optimistic or pessimistic. Additional factors that must receive our attention are, uncertainty in geological facies type, mining practices, geology and grade estimation. The paper outlines (in the authors? opinion) some of the important factors that need to be taken into account, in order to ensure proper alignment between the estimates of the life of mine (LOM) reserve grades, and the corresponding actualisation of the mining plan. These parameters provide an historical insight into what actually happens when attempts are made to implement the mining envisaged in the LOM plan. In turn these allow judicious application of discount factors that enable a realistic estimate of SAMREC reserve classification and declaration. Some of the factors that will be covered are: - 1) Flexibility of developed reserves and the ability to maintain this. 2) Mining control mechanisms and their overall efficacy. 3) The ability to extrapolate facies types and its effect on grade control. 4) The ability to control the mining mix and value variation. 5) Finding a happy medium between optimism and pragmatism.

Jan 1, 2007

By S. Thorley

In engineering design of operator?s compartments, in underground mining equipment, ergonomics principles are often neglected or not given the full recognition they deserve. This paper defines ergonomics, applies it to machinery in an underground mining environment and describes the ergonomics analysis undertaken during the design phase of an EJC extra-low-profile mining loader. Encompassing the design of the operator?s compartment of this new loader, this paper illustrates the importance of ergonomics principles within the collective design process, ensuring that it is fully integrated into the design approach. An ultimate aim of this study is to ensure that all future designs follow this route to guarantee not only the outcome of a highly efficient, cost-effective and productive machine but that it is also takes the human factor into account, not only in maintenance but also in operation. Maximizing comfort will have the ultimate outcome of actually increasing productivity.

Jan 1, 2006

By F. Lombard

We consider the Grubbs estimation of the precision of an online gauge. Typically, this type of estimation involves independent results from two or more reference instruments (sampling and laboratory analysis operations). The properties of the estimator are then independent of the product variability. However, the use of more than one reference instrument entails significant additional costs. The two-instrument Grubbs estimator, which is based on results from a gauge and a single reference instrument, has the disadvantage that its standard error is heavily dependent on the degree of product variability. We propose a new estimator that has a variance that is more or less independent of product variability. In fact, the variance is typically less than that of the Grubbs estimator based on the use of two reference instruments. In order to function successfully, our methodology requires some prior knowledge of the extent of product variability and of gauge precision. In practice, such prior knowledge is often available and it is a weakness of the traditional two - and three-instrument Grubbs methods that no use is made of such knowledge. The efficacy and robustness of the new method is illustrated by Monte Carlo simulation.

Jan 1, 2012

By J. Stacey

This study was undertaken to generate a locally relevant guideline for the socio-economic aspects of mine closure for South African closure practitioners and decision makers. It should also represent a resource for interested and involved stakeholders. Mine closure, and its related post-closure social, environmental and economic characteristics, is part of the lifecycle of mining operations, given the finite nature of the ore resource. Many coal mines are anticipated to close in the next ten to fifteen years in Mpumalanga, as the epicentre of the industry shifts towards the Waterberg. Social aspects of mine closure have been historically underplayed, and under researched. Coaltech thus commissioned two studies, the first of which examined the closure dynamics of 36 mines in Mpumalanga and KwaZulu-Natal in 2006. A follow-up study (July 2007) focusing on Mpumalanga3,4 confirmed some of the results of the first study. It also contained broad guidelines for mine closure covering social and labour planning, job creation, the use of mine infrastructure, developmental incentives, and environmental rehabilitation.

Jan 1, 2010

By V. Pawlowsky-Glahn, E. Pardo-Igúzquiza, J. J. Egozcue, R. A. Olea

Compositional data constitutes a special class of quantitative measurements involving parts of a whole. The sample space has an algebraic-geometric structure different from that of real-valued data. A subcomposition is a subset of all possible parts. When compositional data values include geographical locations, they are also regionalized variables. In the Earth sciences, geochemical analyses are a common form of regionalized compositional data. Ordinarily, there are measurements only at data locations. Geostatistics has proven to be the standard for spatial estimation of regionalized variables but, in general, the compositional character of the geochemical data has been ignored. This paper presents in detail an application of cokriging for the modelling of compositional data using a method that is consistent with the compositional character of the data. The uncertainty is evaluated by a Monte Carlo procedure. The method is illustrated for the contents of arsenic and iron in groundwaters in Bangladesh, which have the peculiarity of being measured in milligrams per litre, units for which the sum of all parts does not add to a constant. Practical results include maps of estimates of the geochemical elements in the original concentration units, as well as measures of uncertainty, such as the probability that the concentration may exceed a given threshold. Results indicate that probabilities of exceedance in previous studies of the same data are too low.

Jan 1, 2015

By M. B. C. Brandt

Focal depths of 15 tectonic earthquakes and 9 mine-related events were determined for South Africa using data recorded by the South African National Seismograph Network. These earthquakes and events were relocated by means of the Hypocenter program using direct P-waves (Pg) , critically refracted P-waves (Pn) , and first-arrival S-waves for the magnitude range 3.6 ?? ML ?? 4.4. Focal depths were first determined by means of the minimum root mean square (RMS) of the differences between the measured travel times and those predicted using the velocity model. The depths for tectonic earthquakes had a 2 km ?? D ?? 10 km range and an average depth and standard deviation of 6.9 ± 2.3 km. Depths for minerelated events ranged over 0 km ?? D ?? 7 km, averaging 3 ± 2.3 km. Next, arrival times for the additional regional depth phases sPn , PmP, sPmP, and SmP were measured. Focal depths were re-determined for the relocated epicentres, with the minimum variance (i.e. spread) of the differences between the measured travel times and travel times predicted by means of the Wentzel, Kramer, Brillouin, and Jeffreys (WKBJ) method for synthetic waveform modelling. Depth ranges were 4 km ?? D ?? 7 km (average 5.9 ± 1.2 km) and 1 km ?? D ?? 4 km (average 2.4 ± 1.2 km) for tectonic and mine-related events, respectively. The derived depths were verified for one tectonic earthquake with synthetic-to-recorded-waveform fits using the WKBJ synthetic seismogram software for the abovementioned regional phases. The focal mechanism parameters for this earthquake source were obtained from the National Earthquake Information Centre. Focal depths were estimated for nine stations by visually comparing synthetic waveform phases with recorded waveforms, ranging from 5 km to 8 km.

Jan 1, 2014

By R. Falcon, P. den Hoed, A. Luckos, R. Erasmus, V. du Cann, D. Comins

Carbon as a reductant, additive or filler is an essential element in the processing of metallic ores and the manufacture of iron and steel in the metallurgical industry. In most cases, the element carbon is derived from coal and its carbon derivatives. The properties of carbon required for the different processes in each metallurgical sector vary significantly and, for this reason, matching the correct carbon product for each specific process has become an important if not vital function in all sectors of this industry. This selection process, however, has become increasingly difficult. In many cases, the substitution of new products, despite being similar in all relevant chemical specification characteristics to previous products, has resulted in different performance properties relative to that expected. Under these circumstances, the prediction of performance of unknown carbon products has become fraught with difficulties unprecedented in the past. In order to initiate an investigation into addressing these issues, a test case was selected for indepth study the results of which are reported in this paper. The case concerned the use of a specific carbon feed in a conventional submerged arc furnace which gave rise to an unprecedented amount of unreacted or only partially consumed residue trapped in the frozen slag on the refractory walls of the furnace. During the course of these investigations, different advanced analytical technologies were employed including, inter alia, Raman spectroscopy, surface dimensional tests, organic petrology and various thermal reactivity factors. All results have been integrated into a multidisciplinary assessment presented in summary in this paper. Based on the above, and previous experience, the concept of an all-embracing 3-D coal-carbon ?framework? is briefly introduced. This approach has succeeded in obtaining greater depth of knowledge and a better understanding of the issues at stake with specific reference to the organic composition, structure, texture, internal surface area and consequent reactivity of the carbon materials concerned. In consequence, it would now appear that various properties of relevance to the metallurgical industry may be predicted with greater precision than has hitherto fore been possible.

Jan 1, 2004

By Q. G. Reynolds

The presence of dust and fume suspended in the freeboard region is a common feature of the operation of direct current (DC) plasma smelting furnaces. This occurs primarily as a result of the use of fine feed materials together with the open-arc, open-bath operation of such smelters, and is exacerbated by the high velocities and turbulent mixing of the gas in the vicinity of the arc jet. Dust and fume losses into the furnace off-gas system can be significant in some cases and may have economic, operational, and environmental impacts on the process. A computational modelling study is presented in which the concentration of dust material was considered as a continuous field subject to a governing partial differential equation. Settling behaviour was calculated as a function of particle size, local gas/plasma temperature, and other physical properties. Development of the coupling between the concentration field and a magnetohydrodynamic description of the arc is shown, and the resulting models were used to compute various aspects of the behaviour of the concentration field in the arc region for a variety of furnace conditions. Time-averaged as well as transient models of the arc were used to generate the results presented. Qualitative case studies produced several practical suggestions for furnace operation, including increased dust capture by the bath when feed ports are located closer to the electrode, and the possible effects of feed segregation in the furnace freeboard based on dust particle size and density.

Jan 1, 2015

By M. du Plessis, D. F. Malan

"The aim of any mine design is to ensure that the excavations remain stable for the period they will be in use. Various pillar systems are used to ensure that underground stopes remain stable and that mining activities do not affect the surface infrastructure through either surface subsidence or seismicity. Intermediate-depth platinum mines make use of in-stope pillars designed to fail while the pillars are being cut at the mining face. The pillar stress exceeds the loading capacity and the pillars crush as a result. The aim of the paper is to provide an overview of in-stope crush pillars. This will include the application, behaviour, function, mechanism, impact, and design of a crush pillar system."

Jan 1, 2015

By David J. Blackwell

The challenge; to design production facilities and in particular separation equipment which have the ability to deal effectively with the ever changing composition of well fluids, over the life time of the field in which it is operating, ensuring maximum uptime of the asset coupled with consistently effective separation. Design engineers are, however, continually confronted with a dilemma when selecting materials of construction for Oil/Gas separation equipment, since they are generally obliged to select an acceptable material of construction, based on ?predicted? operating conditions, at the lowest acceptable cost. Consequently many designs are somewhat basic and do not take into account the constantly varying dynamics of the well fluids being released into the separator. As oil fields mature, oil companies endeavour to maximize revenue by maintaining oil and gas throughputs. This often results in an associated increase in water and sand volumes and, in order to maintain efficient separation, an increase in operational temperature and pressure; subjecting the equipment to operational conditions for which it was never designed. In reality, therefore, the limitations and constraints placed upon new construction design often result in Maintenance Engineers having to solve the ensuing problems in difficult ?in-field? environments. Should refurbishment or upgrade be required then the status of the platform and that of the vessel during shutdown will dictate how this is achieved. Hotwork on the vessel is generally not preferred due to the requirement for post weld heat treatment and re-classification of the pressure vessel, not to mention the added risk in terms of safety. Unfortunately, until recently, there have been few alternatives to conventional ?hotwork? repair and protection systems, especially since the performance of cold curing polymer based repair and coating systems, for use in oil and gas process equipment, has, until recently, been limited by their resistance to temperature and pressure in immersed conditions. In line with the continued development of high temperature / high pressure oil and gas fields however, recent breakthroughs in polymer technology can now offer both repair and protection solutions which are able to function effectively at temperatures up to 180°C in immersed conditions combined with resistance to the destructive forces of explosive decompression from pressures in excess of 90 bar. This paper will look at recent work that has been undertaken to determine the suitability of modern polymer based repair and protection systems as an alternative to hotwork; thus enabling newly designed and upgraded internals to be cold bonded into position and further protected with temperature resistant coatings, in order to minimize the downtime of the asset and further to protect the vessel internals from the Erosive Corrosive environment.

Jan 1, 2006

By A. K. Anyimadu

Ongoing development work on ultra-fine grinding for various applications at the Group?s concentrators has been conducted by Anglo Platinum over the last few years. Current potential applications for mainstream grinding and concentrate grinding are the subject of a group-wide research and development programme. The first 10 000-litre 2.6 MW IsaMill was jointly developed by Anglo Platinum, Xstrata Technology and Netszch for installation at the Western Limb Tailings Re-treatment project in Rustenburg, South Africa. The unit was commissioned in late 2003/early 2004,and has operated in an intermediate concentrate regrind application successfully since. This paper describes the operational performance to date, as compared with the original duty specifications and objectives. The first mainstream M10 000 IsaMill with a 3 MW drive will be operational in November 2006 at the Potgietersrus Platinum (PPL) ?Platreef? Sandsloot Concentrator in South Africa?s Limpopo Province. Keywords: Western Limb Tailings Re-treatment Plant, IsaMilling, Platreef, platinum, palladium, PGMs, tailings.

Jan 1, 2007

By D. McCarthy

Contract is a PC-based software program designed to satisfy the main features that have been identified to be lacking from cost estimation systems currently in place in the Australian coal industry. Contract was developed in conjunction with an Australian contracting company to refine the existing core structure used by the company for project evaluation. The key feature of Contract is the availability of analysis functions to explore multiple options within a contract project by altering identified variables. The ability to update project files has been incorporated into Contract to ensure that it is user-friendly and relatively simple to use. Lists of mining equipment and consumables are stored in MS ACCESS database files, along with the supplier details for each item. Each time a project is initiated there is a dynamic link to the database files and the most recent current information is retrieved and linked with the project. Contract provides an option to calculate the changes in metre unit cost as a function of the average development cost. Keywords: Contracting, cost estimation, sensitivity analysis.

Jan 1, 2003

By R. Heuberger

South Africa?s Mining Industry operates in an uncertain world. The industry is buffeted by problems regarding retrenchments, unemployment, low productivity, rising costs, volatile exchange rates, commodity prices and government regulations. With these uncertainties facing the decision makers, what does applied technology offer the industry?s management? Modelling languages with risk analysis have been available for decades, but in the past their use has been very expensive, requiring large mainframe computers and lots of computer time. Today, PCs and laptops have incredible power, which makes interactive risk analysis affordable and viable for all enterprises, whether small or large. ?What is risk analysis? ?What is Monte Carlo simulation? ?What kinds of computer models need to be created to use risk analysis and Monte Carlo simulation effectively? This paper addresses these questions and illustrates, with a practical example in the mining industry, how risk analysis techniques can be used to support decisions in the climate of uncertainty.

Jan 1, 2005

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 J. Gummer, M. Williams, S. J. Hawksworth

A common problem encountered in British coal mines is bearing failure on conveyor system idler rollers, which on occasions has led to fires. The UK Mines Inspectorate initiated a study of such failures to assess the potential for ignition of explosive atmospheres. As part of this study HSL have developed a system to measure the temperatures generated within the bearings during controlled failure. Temperatures are measured using both infrared thermal imaging and contact thermometry. The work to date has shown that temperatures well in excess of the auto-ignition temperature of methane can occur.

Jan 1, 2003

By F. M. C. C. Vieira

Four mining alternatives for exploiting an ultra-deep orebody were assessed through a multidisciplinary evaluation process which involved: the generation of a 3D geological model; the design and scheduling of life-of-mine layouts; the analysis of anticipated ventilation and cooling conditions; the study of rock-related risks of mining in ultra-deep stress environments; the logistic implications of transporting men, rock and materials; and, lastly, the economic implications of each option. Once results from the integrated mine design assessment were available, mine planners were faced with an important problem to solve: how to identify the optimal mine design alternative when numerous assessment measures and multiple decision criteria needed to be considered simultaneously? To address this ‘multiple-attribute decision problem’ and arrive at the ‘optimal layout for ultra-depth’, a generic decision methodology that uses principles of ‘utility’ was applied. The methodology assumes that ‘single-value risk estimators’ do not account for the inherent variability of real conditions. Therefore, risk estimators were represented by statistical distributions of their incremental changes, where applicable. The stochastic variables, once defined, are used as inputs in the ‘utility’-based layout decision scheme. This ‘utility’-based decision methodology offers a framework for mine design decisions to be made objectively, when complex trade-offs between multiple risk domains need to be considered simultaneously. Upon applying it, one of the layouts emerged as the preferred alternative. Keywords: Utility; mine design; multiple-attribute decision; layout selection

Jan 1, 2003

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

One of the seminal pioneering papers in reserve evaluation was published by Danie Krige in 1951. In that paper he introduced the concept of regression techniques in providing better estimates for stope grades and correcting for what later became known as the ‘conditional bias’. In South Africa, the development of this approach led to the phenomenon being dubbed the ‘regression effect’, and regression techniques ultimately formed the basis of simple kriging in Krige’s later papers. In the late 1950s and early 1960s, Georges Matheron (1965) formulated the general theory of ‘regionalized variables’ and included copious discussion on what he termed the ‘volume-variance’ effect. Matheron defined mathematically the reason for, and quantification of, the difference in variability between estimated values and the actual unknown values. In 1983, this author published a paper that combined these two philosophies so that the ‘regression effect’ could be quantified before actual mining block values were available. In 1996 and in some earlier presentations, Krige revisited the regression effect in terms of the conditional bias and suggested two measures that might enable a practitioner of geostatistics to assess the ‘efficiency’ of the kriging estimator in any particular case. In this article, we revisit the trail from ‘regression effect’ to ‘kriging efficiency’ in conceptual terms and endeavour to explain exactly what is measured by these parameters and how to use (or abuse) them in practical cases.

Jan 1, 2015