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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 L. M. Dwarkin

Strip mining in Western Canada, though of considerable importance, is a fairly recent development for many of the operators in the district. Adding to the difficulty of unfamiliarity is the fact that a great deal of the stripping is done on pitching seams, for which the engineering and economic principles of setting the most advantageous strip ratio are not readily apparent. The novelty of the operation combined with the complexity of the principles involved can easily lead to misconceptions as to the determination of the economic ratio. Definition of Strip Ration There are two commonly accepted meanings of the term strip ratio: (1) The ratio of feet of overburden to be stripped per foot of coal recoverable. (2) The ratio of cubic yards of overburden per cubic yard or ton of coal. The first definition is inapplicable to pitching seams so, throughout this paper, strip ratio will be taken as the ratio of cubic yards of overburden to be removed per cubic yard of coal recoverable. Economic Ratio In the case of flat seams, the strip ratio is fixed by existing natural conditions, and the magnitude of this ratio determines whether stripping is economically feasible. With pitching seams, however, the strip ratio is a variable. On the outcrop, there is usually some coal which can be obtained with little or no stripping. As the work is carried down the pitch of the coal seam, the proportion of overburden continually increases until a point is reached where it is no longer economical to continue the operation. The question immediately arises as to the location of this point, and this resolves into the problem of determining the most favourable strip ratio, or, to use the accepted term, the economic ratio.

Jan 1, 1949

"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By R D. Lama, A Misra

One of the major factors restricting an increase in the productivity of a longwall mine is lower productivity obtained in a development panel. There has been a significant improvement in gate road development, particularly in mines requiring high density roof and rib bolting within 2 m of the face. Advance rates have increased from an average of 3 m to 5 m per shift in 1985 up to an average of 5 m to 10 m per shift in 1991. In mines at shallow depths with reasonably good conditions the increase has not been that significant. Advance rates have increased from an average of 7 m to 12 ni per shift in 1985 to an average of 12 m to 15 m per shift in 1991. Compared to the United States' (US) development rates, these are much lower. Extensive research work has been carried out to minimise cutting, wheeling, support setting time, and to optimise pillar length to achieve maximum advance rates. Pillar optimisation is very important in order to expedite adverse rates. This paper investigates various development rate technologies, both present and future, and optimises pillars to improve these dev elupment rates. Pillar optimisation is based upon time and motion studies conducted at mines in the Illawara region of New' South Wales, Australia, and the basic tools of arithmetic.

Jan 9, 1996

By Augustus Locke

WHY should I, a geologist, be coming before you to talk about finding ore? Certainly, the great discoveries of the past have not been made by geologists, but by men of very different tastes and training. If, in the year 1800, the course of ore discovery could have been foreseen, there would have been no reason to put it into the hands of geologists or other men of technical preparation. It was not geologists but explorers, Indian fighters, prospectors, manual laborers, and hardy financiers, who initiated the American mining industry. Then why this association of geological technique with ore finding? Why this feeling that the way to find ore is to apply to the problem what we call geo- logical principles? Well, to put it broadly, the old method has run out on us. It no longer works. Or, to put it another way, the cost of finding ore by the old method has mounted so high that one old district after another has become, practically speaking, dead, and various other old districts that are still going apparently at full strength are actually beginning to limp, and, with the cost of discovery mounting yearly, to fear, more than they will acknowledge, that the end is approaching.

Jan 1, 1926

By Dhar B. B, Gupta R. C

Grinding of iron ore is an essential step to utilise ore fines for pelletisation needed for DRI units. While preparing iron ore pellets for DRI production, the iron ore needs extensive grinding which is highly energy consuming step causing the process to become non-viable in some cases. In the present paper an attempt has been made to evaluate grinding performance of thermally treated ore compared to normal ore grinding. Such thermal pre-treatment has been found to reduce the energy requirement with lower consumption rate of grinding media. It has been observed that by applying thermal shock the ore is rendered weak with improved grindability. The stresses generated due to thermal treatment may extend existing micro-cracks in the ore and in some cases it may even nucleate fresh cracks. Experimental studies carried out on thermally treated hematitite ore reveals that the heating to 400¦C followed by water quenching can cause a reduction of 45 per cent in grinding energy. The paper gives the details of the experiment and the Results.

Jan 1, 1999

Some major mineral deposits in northern Australia are found in preconsolidation slump disturbances in the sediments.In the retransported marine sediments at Tennant Creek, breccia beds and disturbances are found which have localized later mineral deposits such as the Peko copper orebody. These disturbances are thought to result from slumping, turbidity flow and various types of "semi-fluidized" subaqueous slides intermediate between slumps and turbidity currents.Movements are found to ~ause widespread disturbances in the sediments such that subsequent mineralization can spread through a large volume of rock giving rise to orebodies greater than those localized by tectonic structures.A similarity is noted between the sedimentary disturbances at Tennant. Creek and those at Mount Isa and Mary Kathleerr. It is suggested that disturbed beds which are host rocks to ore minerals in these mines may also be due to movements of the sediments before compaction.Certain characteristics of the slumped rocks can be recognized and limited generalizations can be made about the shape, extent and habit of these host rocks and the orebodies they contain.INTRODUCTIONSubmarine slumping and· turbidity current retransport are almost entirely responsible for some types of deep marine sediments.However, little attention has yet been drawn to slump deposits and associated disturbances bedded in the sediments as features localizing later mineralization.A study. has been made by the writer of the slump and associated phenomena of the ,Tennant Creek field where many mineralized bodies, including some gold and copper orebodies, occur as replacements of coarse fragmental slump...

Jan 1, 1960

By L. J. Gardner

Ore pass systems play a critical role in moving broken rock from the workplace to surface, and the integrity of the ore pass excavations is crucial. Over the life of the mine, ore pass integrity deteriorates, which may eventually result in the ore pass no longer being fit for purpose. This paper presents several case studies of successful ore pass rehabilitation exercises.

Jan 1, 2006

By David S. Bolin, Bruce Kennedy, Leigh A. Readdy, Graham Mathieson

INTRODUCTION The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore reserve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion presents an overview of somewhat more sophisticated methods of geostatistics which have been developed within recent Years. Geostatistical methods frequently provide the best ore re- serve estimates for many deposits. However, a digital computer is required for such geostatistically derived estimates due to the number and complexity of the cornputations involved. For many properties the classical nongeostatistical methods are adequate, particularly in the early exploration stages. In fact, it is the author's contention that even at those properties where the geostatistical approach is employed for reserve estimation, the geological and engineering staffs should prepare an estimate by traditional means. This provides an internal audit for the reserves and at the same time requires a continuing close appraisal of geologic problems that influence the presently known geostatistically estimated reserves and production at the mine.

Jan 1, 1982

By Alan C. Noble

Ore reserve estimation is a multi- disciplinary process involving not only tonnage and grade estimation (resource estimation), but also consideration of technical and legal aspects such as mining the deposit, beneficiating the ores, and selling the product. This paper provides a background to under- standing resource estimation including geologic modelling, manual estimation methods, conventional computer methods. and geostatistical methods. Mine planning, metallurgical studies, legal/environmental, and marketing considerations are also discussed as they relate to estimating ore reserves.

Jan 1, 1991

By Jean Michel Marino, Jean-Pierre Slama

"The computer methods used by the French Commissariat a l'Energie Atomique, which are applicable to any type of ore deposits, are:(i) Ore reserve estimation. The data are either the core analyses or gamma leggings. To determine the spatial distribution of the ore, three different methods of interpolation are used. Two of these are based on the least-squares theory and the third one is an application of the regionalized variable theory. The interpretations of the orebody by the geologists are introduced in the computer program as often as possible.(ii) Optimal open pit design. From the spatial distribution of ore, the three-dimensional outlines of the optimal pit are determined by a geometrical algorithm which allows different slopes varying with the azimuth.Finally, the optimization of annual successive plans arc discussed."

Jan 1, 2014

By LESTER W. STRAUSS

FOR fifteen months after the other dominions of the British Empire and the entire so-called sterling 11loc loosed the shackles that bound the111 to the gold standard, South Africa, giant among gold-producing nations, remained stubbornly attached to gold at the traditional ratio of 85 shillings in currency to one ounce of gold. But eventually even South Africa had to heed the dictates of trade and the obvious interests of its great gold-mining industry. In December, 1932, South Africa's currency severed its golden bonds. Today the South African pound is 011 a par wit11 the British pound.

Jan 1, 1935

By Armine F. Banfield

The Purpose of the Paper It is fitting that the first paper of a session on the Financial Aspects of Mining should be on the basic data upon which any financial discussion of a mining project must be based. The history of a mining project starts with exploration in an area considered geologically favorable for mineralization and culminates in the discovery of a body of valuable mineral material commonly known as a mineral deposit. Subsequently more detailed exploration establishes the approximate size, shape, tonnage and average grade of the deposit by surface and/or underground drilling, -surface trenching and/or underground workings. Some preliminary metallurgical testing and other studies, as required, are made at this time. Development work is then carried out to provide representative samples for determining flowsheet and metallurgical balances, preparing the deposit for production and establishing more firmly the grade and mining characteristics of the deposit. A feasibility study is then made of the engineering aspects of the project including the estimation of operating coats, the capital required to place the deposit into production, profit and return on investment. A valuation of the deposit

Jan 1, 1972

By M Aboagye, K Appau, W. Assibey-Bonsu, C. Muller

A case study based on two recoverable resource modelling techniques (indirect and direct or localised methods) have been derived using typical feasibility study or new mine drilling data configurations from the extensions of an existing mine’s massive production database. The database is from the Gold Fields Tarkwa Gold mine (~6Moz Mineral Reserves and 13-year Life-of mine). The corresponding recoverable resources from the various techniques are then analysed using the open pit Whittle optimisation process. The results were then compared based on the Whittle optimisation results to determine the efficiencies of the approaches and the validity of the recoverable mineral resource estimates for mine planning and financial forecasts (including Cash Flows etc). Based on historical production metal recovery, the paper also assesses the corresponding orebody and mine planning as well as financial risks with regards to the modelling techniques. The study shows that the localized direct and somewhat more straight forward approach if applied efficiently can provide an equally useful tool for computing recoverable resources for mine planning and financial forecasts, as compared to the indirect approach as presently in use.

Jun 25, 2023

By Bradley Stoughton

A LL over our great country I have been privileged to see, during the last six weeks, the manifestation of a new spirit among engineers. Partly under the inspiration of leaders whose influence has been felt not only nationally, but internationally, - partly through the recognition of the service that engineers have been able to render to the nation during the recent crisis, a new self-consciousness has been acquired by the individuals, and now this self-consciousness seeks expression in opportunities for service and participation in public affairs. The engineer . no longer sees himself a mere reservoir of information to be tapped when some one is in need of cold facts, no. more an administrator of mere material things, but a potential administrator of- public affairs, a citizen and a human being, with the responsibilities, as well as the privileges of citizenship.

Jan 1, 1920

By M. A. Leosson, S. H. Bottrell, R. J. Newton

Sylvite at Boulby is mined 1 140 m beneath the sea and the mine suffers from the influx of water. This is of two kinds: persistent flows originating in the Sherwood Sandstone aquifer and entering the evaporite sequence through fractures in the intervening mudstone, and impersistent flows which are transient in nature and of uncertain origin. Water from the overlying sandstone has become enriched with NaCl and large amounts of KCl and some Mg and Br have been added by interaction with the evaporites. Waters from the transient flows are isotopically distinct from those in the Sherwood Sandstone, being enriched in H and O. They are also saturated with respect to halite and sylvite, but have higher K/Na than the persistent flows and are much more enriched in Mg and Br

Jun 18, 1905

By V. McLemore, N. Dunbar, K. Donahue

There are three principle lines of evidence that indicate the clay minerals found in the Goathill North (GHN) rock pile at the Molycorp mine are predominantly a product of hydrothermal alteration, not weathering. The unweathered drill core and samples from GHN have similar types and abundances of clay-mineral groups based on XRD analysis. Chemical analyses from the electron microprobe reveal similar chemical compositions for the hydrothermal alteration clays in drill-core samples and clays found in the rock pile. Textural evidence gathered from petrographic and microprobe examination also suggests a hydrothermal origin for clay minerals.

Jan 1, 2007

By Joe M. Short

More than eighty years ago, in what we generally consider a more leisurely age, workers and engineers began the construction of the longest railroad tunnel in the world. When completed, the Simplon Tunnel ran more than twelve miles through the alps to connect Switzerland and Italy. Work began in 1898 and the tunnel was completed in 1905. In all it took about seven years to build one of the world's great tunnels. More than seven years ago, in what was hoped to be a rapid and constructive to the deaths of 38 workers in two spectacular tunnel disasters in 1971, the secretary of Labor's Construction Advisory Committee on Safety and Health began in January 1972 a search for an effective standard on tunnel safety. Much hard and useful work has been done, especially by the construction advisory committee' but more than seven years later, we still don't have a tunnel standard. We may speculate that, when the Simplon Tunnel was completed, workers and their bosses assembled to celebrate their achievement and to count their casualities. We have no need to speculate on the lack of achievement up to this time. An so far as I know, the bureaucrats have suffered no casualities except perhaps some unreported cases of ring-around-the-color. The only moral I can draw from all this is thai it is easier to penetrate solid rock than it is to get through bureaucratic fog. We can only hope that OSHA will finally take advantage of the work which was finished years ago and complete the actions necessary to give us a tunnel standard. Having made my point, I could stop my remarks right now; but

Jan 1, 1979

On the preceding pages, operations of the four major producers of nickel today have been described. There are, however, other operations in the world that, while not as large, are still of importance to the over-all picture of the industry. Among these are the Finnish producer, Outokumpu Oy, a state-controlled company that operates the Kotlahti mine 200 miles northeast of Helsinki. The ore from this operation, which began production in 1959, is pentlandite, chalcopyrite and pyrrhotite, occurring as disseminations in the host rock and in breccias. The flowsheet of the 1500-tpd mill at Kotlahti follows standard practices of crushing, grinding, and flotation to produce a pentlandite-pyrrhotite concentrate and a copper concentrate, both of which are shipped to the smelter at Harjavalta.

Jan 10, 1968

By P. W. J. van Rensburg

Our mineral heritage - PRESIDENTIAL ADDRESS given by P. W. J. van Rensburg, Pr. Eng.. B.Sc. (Eng.)(Rand) INTRODUCTION Stone Age people were living in various parts of South Africa as recent,ly as a thousand years ago, when they were displaced by Iron Age people with a culture developed in the far north. These invaders brought farming, building, and the earliest mining developments to the Transvaal, thus ushering in the beginning of our great mineral heritage. It is of particular interest to record that, up to comparatively recent times, some of these people were excavating iron-bearing shale rocks for their smelting furnaces on the Melville Koppies in J ohannesburg. Although the most recent the iron-smelting furnaces discovered on these koppies is estimated to be some five-hundred years old, it believed that these Iron Age people were driven out, and their settlements destroyed, by Zulu impis only one-hundred-and-fifty years ago.

Jan 10, 1973