Search Documents

By C. Birch

"A mineral resource royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In South Africa, this payment is made to the State as holder of the mineral rights (The Mineral and Petroleum Resources Royalty Act of 2008). The principle purpose of this research paper is to identify if the State is benefitting from the mineral resource royalty by considering its impact on seven individual Witwatersrand gold mines.For this study, a simple financial optimiser model was created in Microsoft Excel that links the ore flow, block listing and the cash flow (excluding or including the cost of the mineral resource royalty). Mixed integer linear programing (the Excel Solver function) is utilised to optimise either profit or NPV (at 9% and 12%) by adjusting the cut-off grade.The impact on each of the seven mines mine was different but overall R7.9 billion is estimated to be paid in mineral resource royalty over their expected remaining lives. Due to the cost of the mineral resource royalty and increasing the cut-off grades, the total revenue decreases by R10 billion. A significant portion of this lost revenue would have been paid to the State in the forms of other taxation including company income tax which decreases by R2.8 billion. It is recommended that an industry wide investigation be conducted to determine if the resource royalty is adding to the State’s revenue, or destroying value including premature job losses. IntroductionTaxation of mining companies has become a very topical subject in the context of the postapartheid South African economy. There have been increasing calls for equitable re-distribution of mineral asset wealth for the benefit of all South African citizens and not just to an elite few. As part of the Mineral and Petroleum Resources Development Act (MRDPA) of 2002, the Mineral and Petroleum Resources Royalty Act of 2008 was introduced and came into effect in 2010 (South African Revenue Services, 2008). A mineral royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In the case where the holder of the mineral right is the State, then this payment is made to the State (Cawood, 1999). Studies on the potential impact of the mineral resource royalty on the minerals industry have been conducted during the formulation of the Act and subesquently. These include Cawood and Macfarlane (2003), who suggested a cap of no more than 3% (Cawood and Macfarlane, 2003), as well as Cawood (2011), who predicted rising cut-off grades and thus reducing mineral reserves. In 2013, Grobler completed a Masters in the Faculty of Economic and Management Sciences at the University of Pretoria and concluded that the impact of the mineral resource royalty on the economy is positive. She stated that the royalty has caused operating expenses to increase, but this does not appear to be significant. Furthermore, she stated that the royalty has not affected the way the mining industry operates (Grobler, 2014)."

Jan 1, 2016

In order to deliver a quality shotcrete and concrete product underground for the extensions to the Cullinan Diamond Mine operations it was decided to develop a new, simpler concrete product to meet underground support requirements. The aim was to develop a concrete product that not only reduced costs but also met the performance criteria of the current range of concrete products used on Cullinan Diamond Mine, a 25, 45 and 60 MPa concrete and a fibre reinforced wet shotcrete. The concrete product batching and delivery system was to be from surface as opposed to the current underground batching systems. The operational principle was to include an automated surface batching plant with delivery of the concrete product to a borehole containing suspended pipelines delivering to an underground storage facility from where the product is delivered to the working area by further pumping or agicars. Keywords: concrete, shotcrete, full flow, frictional loss, pipeline transport, positive displacment pump

Jan 1, 2006

By S. Parada, P. T. Jones, M. Guo, S. Smets

The corrosion behaviour of a high-quality rebonded magnesia-chromite refractory in contact with a vacuum oxygen decarburization (VOD) slag with high Al2O3content (15?20 mass per cent) is investigated under VOD process conditions by rotating finger tests in a vacuum induction furnace. The refractory degradation mechanisms are studied by the characterization of corroded microstructures using scanning electron microscopy, equipped with energy dispersive spectroscopy. The influence on the refractory wear of the process temperature and the Al2O3content in the slag is discussed. Keywords: corrosion, magnesia-chromite refractory, VOD slags, vacuum induction furnace

Jan 1, 2004

By R. J. Durheim

Detailed investigations have been conducted into 21 rockbursts which caused damage to excavations in deep South African gold mines, in many instances resulting in the death or serious injury of workers. The objective of this study is to determine the principal factors controlling the severity and distribution of damage, so that strategies to reduce the hazard of rockbursts may be developed. It was found that the source mechanism is often controlled by the mine layout, and regional structures such as faults and dykes; while local rock conditions and support systems strongly influence the location and severity of damage. In the short term the most important lever for reducing the rockburst hazard is the effective implementation of existing rock engineering knowledge and technology.

Jan 1, 1998

The influence of varying amounts of magnesia, silica, and alumina in iron ore sinter on its mineralogy, reducibility index (RI), reduction disintegration index (RDI), physical breakdown (AI and TI), and production properties (coke breeze rate) were examined. It was found that the mineralogy of iron sinter can more easily be predicted from its chemical composition than from the RI, RDI, AI or TI. Anticipating the consequence that varying amounts of MgO and SiO2would have on sinter properties is complex, and not necessarily predictable. High concentrations of Al2O3in the sinter result in high concentrations of the SFCA phase, but with drastically deteriorated properties. This study also confirmed that the form in which fluxes are added to the raw material sinter mixture affects the mineralogy and properties of the produced sinter.

Jan 1, 2010

By D. Pillay

Outsourcing? and ?sub-contracting? have become buzzwords in recent years, as SA industry becomes increasingly exposed to the global economy, and global competitiveness. In its effort to ?catch up? after years of relative isolation, there is a concerted effort to learn from global ?best practice?, in order for South African companies, and the SA economy, to become ?winners?. There seems nothing wrong with this approach at face value. Companies need to compete and be profitable if they are to remain in business. Failure will in the end mean bankruptcy, and the loss of jobs. However, if one interrogates the precise practices, and their implications for all concerned?not just shareholders and employers, but workers, communities, the environment, future generations, the national economy?then the picture can change dramatically. ?Best practice? for whom?

Jan 1, 1999

By J. Glazewski

The mining industry in South Africa has developed its own environmental guidelines in the form of an Aide-Mémoire1,which is an extension of the previous rehabilitation provisions to include all aspects of the environment and all phases of a mining operation. This development, at the time, recognized an international trend towards the formalization of environmental management in mining practice, which resulted from the realization of the large environmental liabilities that mines could face, particularly on closure. Over the past decade the international environmental focus in the mining industry has moved from operational management, to the reduction of liability on mine closure. Mine closure guidelines are being developed internationally by nations (for example, SRK, 19982) and by large mining groups (for example, Rio Tinto, 19983). In South Africa the Department of Minerals and Energy (DME) is presently reviewing the Aide-Mémoire to bring it in line with international and local developments and a separate mine closure plan is being considered.

Jan 1, 2000

By B. M. Nyombolo

Mintek has been involved in the development of bioleach technology for many years, initially for refractory gold extraction, and more recently also for base metals extraction. Mintek, in collaboration with its Australian technology partner (BacTech), is the technology provider for the Beaconsfield refractory gold bioleach plant. At present Mintek, BacTech and Peñoles are constructing a demonstration bioleach plant for copper-zinc concentrate treatment. Bioleach liquors produced in all applications have to be neutralized. In the copper-zinc case, neutralization is required for bleeding iron from the circuit and for adjusting the pH value ahead of solvent extraction. In the refractory gold bioleach circuit, neutralization is required for producing a stable iron-arsenic residue. Some of the challenges encountered in each of these neutralization applications are discussed, and examples of results obtained are presented.

Jan 1, 2000

By G. S. Littlejohn

Following study of historical South African practice and a review of recent experience gained during the design, construction and testing of the high pressure plugs at the South Deep Water Barrier Project, this paper makes recommendations to improve practice. Initially, site investigation requirements are described with reference to geological, hydrogeological and seismic considerations, including site preparation and pre-grouting of the surrounding rock mass, if permeable. Structural and hydraulic aspects of plug design address topics such as residual permeability, aggressive mine water, plug materials, mortar strength and bleed. In situ thermocouples and piezometers are recommended to optimize the timing of plug tightening and monitor plug performance during service. Plug construction covers aggregate preparation, mortar quality control, plug tightening grouts, injection pressures, records and the overriding need for a method statement specification to control all aspects of plug construction. On completion of the plug, tests to establish surrounding rock stress regime, plug strength, and residual permeability are described to enable a comparison with original design assumptions. Monitoring and maintenance procedures are proposed to ensure satisfactory long-term performance of the plugs.

Jan 1, 2006

By W. Kotze

The gold mining industry has mainly relied upon the use of highly polluting chemicals, such as mercury and cyanide to recover gold from its ores. The Coal Gold Agglomeration (CGA) process was developed some years ago and has the advantage in that gold is recovered by a procedure which has little or no negative impact on the environment. A gold ore containing liberated gold particles is contacted with coal-oil agglomerates, where by the gold is recovered into the coal/oil phase. Laboratory scale batch tests were performed on an artificial mixture gold slurry and gold recoveries of up to 85% were found under optimized conditions. By recycling the coal/oil phase, it was found that the gold loading onto the agglomerates was increased. Tests performed on an industrial ore yielded slightly lower gold recoveries, and X-ray Diffraction (XRD) analysis on the coal/oil phase showed that minerals other than gold was recovered into this phase. A comparative study was conducted whereby the CGA process was compared to mercury amalgamation. Gold recoveries obtained through amalgamation were 15% lower than by the agglomeration process, which indicates that this process can be considered favourably as an alternative to amalgamation.

Jan 1, 2000

By S. R. Dindarloo

Although blasting is one of the most widely used methods for rock fragmentation, it has a major disadvantage in that it causes adjacent ground vibrations. Excessive ground vibrations can cause a wide range of problems, from nearby residents complaining to ecological damage. Prediction of blast-induced ground vibration is essential for evaluating and controlling the many adverse consequences of surface blasting. Since there are several effective variables with highly nonlinear interactions, no comprehensive model of blast-induced vibrations is available. In this study, the support vector machine (SMV) algorithm was employed for prediction of the peak particle velocity (PPV) induced by blasting at a surface mine. Twelve input variables in three categories of rock mass, blast pattern, and explosives were used for prediction of the PPV at different distances from the blast face. The results of 100 experiments were used for model-building, and 20 for testing. A high coefficient of determination with low mean absolute percentage error (MAPE) was achieved, which demonstrates the suitability of the algorithm in this case. The very high accuracy of prediction and fast computation are the two major advantages of the method. Although the case study was for a large surface mining operation, the methodology is applicable to all other surface blasting projects that involve a similar procedure.

Jan 1, 2015

By A. D. Pelton

The evolution of thermodynamic models of molten salts and slags, starting with Temkin in 1948, has culminated in today?s sublattice models. These modern models have permitted the development of large thermodynamic databases of model parameters, which can be used to calculate and predict accurately the properties of multicomponent solutions. The model parameters are mainly obtained by the critical evaluation and optimization of available thermodynamic and phase equilibrium data for binary and ternary subsystems. The models are then used to estimate the properties of multi component slags and salts from these assessed binary and ternary parameters. When used in conjunction with thermodynamic databases for solids and solid solutions (salts, oxides, sulphides, metals, etc.), other liquid solutions (such as liquid metals),and gases, these databases permit the calculation of complex multiphase equilibria in multicomponent systems, with applications in a wide variety of industries. These calculations can be performed with general commercial software for Gibbs energy minimization, which can also be incorporated into process simulation software packages. Keywords: slags, salts, solution models, thermodynamics, phase diagrams, oxide systems, molten salts

Jan 1, 2004

By I. Benning

Since the dismal performance of the Rand Mines management was called to account by its shareholders in 1994, the waves of change have continued to ripple across the South African mining industry .The number of listings on the gold board of the Johannesburg Stock Exchange, that once numbered 40 or 50-odd, have now dwindled to no more than a handful as unprecedented restructuring has taken place. The redefining of the industry has not been limited to the gold sector, but across the base metal, coal, diamond, platinum and industrial mineral sectors as well. At the same time the Mining Houses began to reconsider their funding strategies. Originally established in the early part of the century to ensure the long-term sustainability of their group mining operations by providing substantial financial muscle and technical support, the Mining Houses were faced with a rapidly changing political environment, which proved to be a critical catalyst in giving momentum to the change. Furthermore, the significant development costs and increasing risk profile for new projects, coupled with pressure from shareholders demanding respectable returns, opened the door to opportunities for banks to begin providing external debt by the way of project finance. However, the provision of long-term debt to the South African mining industry had generally not been common since mining companies had financed new projects with equity, or with the cash flows from existing operations. Those banks that had the appetite for exposure to the perceived high risks of the mining sector rapidly built up specialist resource banking divisions capable of addressing the increasing demands of the industry. The application of project finance, the principles of which were developed in the 1970s specifically for infrastructure projects and privatization, is now commonly applied in the financing of greenfield and brownfield mining projects. This paper outlines the approach that lending banks would typically adopt when arranging or providing mining project finance, their usual areas of concern and the way in which the finance is structured to mitigate the many inherent risks.

Jan 1, 2000

By C. C. Pretorius

3D seismic surveys have become a well-accepted method of imaging sub-surface geology in the Bushveld Basin. Because both the seismic sources and receivers are placed at surface, most surveys are limited to imaging faults with >=7 m throw. However, some areas such as shaft infrastructure can benefit from the ability to detect smaller structures prior to shaft sinking. Borehole radar and logs such as the acoustic televiewer can identify these structures in the shaft barrel, but not within -200 m from the shaft. Therefore, Anglo Platinum has developed the method of high-resolution 3D vertical seismic profiles (VSPs) for structural sterilization of shaft sites prior to shaft sinking. VSPs utilize a surface source and sub-surface receivers deployed down a borehole. This means that seismic energy goes through the near surface only once, and therefore suffers less frequency loss than when both source and receivers are on surface. Furthermore, VSPs can record 3 component (3C) data which comprises P wave, Sh (horizontal) and Sv (vertical) wavemodes. Because S waves travel at about 0.6 of the velocity of a P wave, shorter wavelengths and therefore higher resolutions are possible using S wave data. VSPs were first used in their one dimensional, zero offset, mode to correlate borehole geology with seismic stratigraphy within seismic surveys. This showed that VSPs record -30% higher frequencies than surface seismic surveys. The program then applied two dimensional VSPs to the problem of imaging geological structure close to a borehole. 2D VSPs confirmed that high frequency results could be achieved, and that this enabled a more accurate image of the Merensky Reef than could be achieved by surface seismic data. Finally, the program has achieved the successful recording and processing of 3D VSP data, with both compressional and shear wavemodes giving a high resolution structural result. Although P wave data gives -30% frequency improvement over surface seismic surveys, S wave data can give as much as 80% improvement, further improving the structural image achieved. The high fixed costs of VSP surveys mean that they should ideally be run in multi-client batches, which can reduce the per borehole cost by up to 50%. Their application is anticipated to be on high value capital infrastructure with a geological risk from faults which are not imaged by surface seismics-generally in the sub-7 m range. Keywords VSP, 3D seismic, bushveld, platinum, resolution, imaging, shear waves, shaft sinking.

Jan 1, 2011

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 Simon St J Tose

The objective of this paper and presentation is to review the different criteria and methodology used by AEL and other organisations to create a pre-split design which delivers a stable highwall for the life of that part of the mining operation. It will look at the need to adapt and change the way, size and direction of the production blasts as the mining phase approaches the highwall position for which a pre-split has been created. Key Words: Pre-split: Design; Highwall; Perimeter

Jan 1, 2006

By F. T. Cawood

?It is in the interest of stability and investor confidence that the healthy and necessary debate on such a (minerals) policy should soon find its way to consensus.? (President Nelson Mandela at the104th (1995), AGM of the South African Chamber of Mines) Inauguration of the new political dispensation in South Africa initiated a dynamic period in the historical development of its minerals policy. The process of substituting the current South African mineral policy framework with an acceptable ?post apartheid? system, started soon after the 1994 election of the African National Congress (ANC) government. The Green Paper on a Minerals and Mining Policy for South Africa released for public discussion in February 1998, calls for radical transformation in mineral rights ownership. A shift towards exclusive state ownership of mineral rights, away from the present dual system of private and state ownership, is the most significant proposal. The current holders of mineral rights, or their nominees, who lawfully enjoyed security of tenure under past and present mineral laws are opposed to this transformation because mineral rights were often acquired at considerable cost. The situation is compounded by poor public record-keeping and passive mineral rights administration over a very long period. This paper represents a summary of the historical developments leading to the current legislative environment and forms the basis for any discussion on which future sculpturing of South Africa?s policy regarding mineral rights can take place. One cannot plan for the future without considering the past!

Jan 1, 1998

By B. Kenny

The aim of this paper is to provide an overview of existing forms of subcontracting in the South African mining industry. A descriptive framework is developed to understand different subcontracting arrangements. We argue that, in order to do so, it is important to distinguish between labour broking and gang subcontracting. Data resulting from a research project (including an analysis of historical sources, interviews with contractors and focus group interviews with mineworkers) is presented to highlight the implications of changing formations of subcontracting for the South African mining industry in the late 1990s. Apart from the subcontracting of ?traditional? functions, such as shaft sinking, access development, catering and hostel maintenance, contractors are now used in ?core? mining activities. In some instances, whole shafts are ?outsourced? to outside agencies. It is argued that certain of the subcontracting arrangements have serious implications for the ability of the mining industry to improve health and safety standards. Some of the practices can potentially result in conflict between different categories of workers, and, as a result, instability in the industry.

Jan 1, 1999

The validity of a steady state assumption made by Adams and Nicol (1986) in the modelling of the elution of gold from activated carbon was investigated. It is shown that the accuracy of the steady state approximation is dependent, not only on the magnitudes of the solution flow rate and reactor volume, but also on the lumped elution rate constant. Under the experimental conditions used by Adams and Nicol (1986) the steady state assumption was inaccurate. This could be circumvented in this instance by applying a rigorous general model which accounts for unsteady state behaviour in the solution and in the activated carbon to the experimental data.

Jan 1, 1997

By P. Kluge

Mining engineers frequently encounter complex design problems for which the critical components of the design are difficult to quantify or compare. Teams of people typically work on these designs and human perceptions and judgments play a strong role. To assist with this process, the analytical hierarchical process (AHP) as a decisionmaking tool is described in this paper. Although the technique is used in many other disciplines, it is currently not widely used in mining engineering in South Africa. To use the AHP process, the problem should be treated as a hierarchy that defines the goal, the alternatives to reach it, and the criteria for evaluation of these alternatives. Pair wise comparisons are conducted on the criteria of the hierarchy to establish priorities. The value of the technique is that it is simple to test for consistency amongst the pair wise comparisons to ensure that the answer obtained is better than that provided by a random selection. To illustrate the technique, the use of a backfill support system in a platinum mining project was investigated. Ten design parameters, which will be impacted by the use of backfill, were identified and weighted according to their relative importance. The result of the AHP evaluation was that the use of a backfill support system should be preferred to a conventional support system at the mine.

Jan 1, 2011