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South Africa remains the largest global producer of gold, accounting for 11.3 per cent of total world mine production, which amounted to 2520.2 t in 2005. The benefits and disadvantages associated with hedging practices in general, and among South African gold producers is examined. The wide variety and unique nature of risks faced by the mining industries provide a strong case for hedging. Only the principles of hedging, such as selling ounces of gold in the ground at a pre-agreed price for delivery at a future date as a cost-effective mechanism for price risk management, is discussed. Progressive and cumulative increases in the volume of forward sales in the major producing countries are considered by many to be the cause of the declining gold price over the past decade. In spite of negative publicity, forward selling continued as an industry-wide practice until recently (2002) when the global hedge book contracted by 352 t; contraction amounted to 158.6 t in first quarter of 2006. The objectives and benefits of hedging include continuity and stability of cash flows, stability in price achieved, reduction of frictional costs, and creating an effective management tool. The importance of a defined hedging strategy in reducing uncertainty about the hedging objectives is essential to a successful hedging policy. Historical patterns in hedging revenues at an industry level indicate five distinct periods during which the fortunes of hedgers have fluctuated. Finally, since 2001 the rising gold price and reduced price volatility through the consolidation in the global price means that the need to stabilize revenue flows is less urgent. This has meant that hedging is becoming progressively less important for the mining industry at large.

Jan 1, 2007

By C. Scheffer

This paper describes a model that can simulate the behaviour of a pneumatic intensifier that is generally referred to as an ?air pump? (AP). The AP is used in many South African underground mines, and utilizes compressed air with pressures between 0.3?0.6 MPa to pump water up to pressures of 12?18 MPa. The high pressure water is used in numerous underground mines to pressurize props and roof bolts that act as safety and roof support devices. The simulation model reproduces the intensifier's operation under various conditions and therefore can be used to investigate the AP's sensitivity towards environmental conditions, design parameters (such as spring stiffness, plunger diameter, nozzle diameter etc.) and operating conditions. Model validation by comparison with laboratory experiments showed good correlation. The model can subsequently be used to investigate design changes aimed at improving the AP's performance and reliability over a wider range of operating conditions.

Jan 1, 2005

By N. Simpson

Low carbon 11.5% chromium stainless steels are finding increasing use in industry as square or rectangular tubing material for the construction of structures by welding. During processing, resistively welded circular pipes are bent into square or rectangular shapes. During this process longitudinal cracks can sometimes develop atone of the inner corners of the section. An investigation has shown that the processing of round into square tubing with very sharp corners can cause excessive cold working at the inner corners of the squared tube. This, together with the high tensile residual stresses and a susceptible microstructure due to the presence of grain boundary carbides, can result in brittle cleavage cracking. Measures that can be used to reduce the problem are described.

Jan 1, 2003

By R. Thomason

Thank you Dr Barcza, President of the South African Institute of Mining and Metallurgy, for inviting me to share our experiences in Australia as regards the competency movement and my Association?s experience in assisting engineers become managers. This is my second visit to South Africa, and I am struck by the similarities between our countries. This extends to the professional issues associated with engineering and competencies in particular. I propose to outline two exciting stories today. ? Development of competency standards for professional engineers in Australia. ? Development of a management programme which has assisted professional engineers regain positions of leadership in Australian industry and government. First of all I would like to outline the Association of Professional Engineers, Scientists and Managers, Australia(APESMA).

Jan 1, 1997

"Chairman: Professor J. Elbrond Rapporteur: Miss V. E. MartingPapers.Aids to planning production in coal mines by F. H. Deist and M. P. RobertsCapacity calculations, investment allocation and long-range production scheduling in German coal mines by F. L. WilkeOre reserve evaluation and open pit planning by J. M. Marino and J. P. SlamaThis session was devoted to the economic aspects of planning and scheduling. After Dr F. H. Deist had introduced the paper Aids to planning production in coal mines, Dr T. V. Falkie summarized the following formal contribution prepared jointly with Dr R. V. Ramani, describing the work that has been done at the Pennsylvania State University in the development of simulation programs for mine planning over the past 15 years:During the late 50's and early 60's, Monte Carlo simulators were developed to model continuous miner-shuttle car transport systems, track haulage systems, belt conveyor networks, etc. In the mid-60's attention was directed towards deterministic simulation of equipment performance, given the equipment characteristics and the system profile. In the late (10's all these systems (miners, shuttle cars, belts and trains) were integrated together to form a complete coal mine simulator and the program could predict the output potential of the system, given the mining dimensions, method and equipment employed. The actual sequence of coal-cutting operations is entered into the computer through the use of a special programming language which permits any type of mining configuration to be simulated. The simulator is hybrid in nature in that the shuttle cars, trains and belts are simulated deterministically, whereas rate functions with delay frequencies are entered for the continuous mining operations of sumping, shearing, fleeting, cleaning, etc. With suitable manipulation of the data, the program may be applied to all belt or conventional mining sections. Most of these simulators were developed through the assistance of grants from the Department of Mines and Mineral Industries of the Commonwealth of Pennsylvania and are available from the Coal Research Board of the Commonwealth,"

Jan 1, 2014

By C. Musingwini

In the past ten to fifteen years, many organizations have applied business process re-engineering (BPR) to significantly improve their business competitiveness or stave off closures. The mining industry in Southern Africa is no exception and documented examples can be drawn from South Africa. Although the concept is superficially simple, its application has been marked by a high failure rate of about 70 per cent because it has been generally misunderstood. Shabanie mine, a chrysotile asbestos fibre producer in Zimbabwe took cognisance of this fact by cautiously embarking on a modular BPR programme in October of 2002. A year was used as a complete cycle or module for re-evaluation of the programme. Shabanie mine adopted BPR as part of management efforts to remain competitive amid serious threats to operational viability. These threats included hyper-inflation driven rising production costs, a declining world asbestos market and a possibility that Russia could take over the shrinking world asbestos market by dumping low-priced asbestos fibre. The only competitive advantage that the mine had was the high quality of its long-fibre chrysotile asbestos. The major BPR thrust was therefore to redesign processes for improved productivity and ultimately achieve a lower cost per ton of final asbestos fibre product. In addition, corporate culture change and cost-saving were also factored into the programme. This paper discusses the implementation experience of the BPR programme at the mine. The main BPR beneficial highlights are improved productivity, sizeable cost-savings, positive corporate culture change and identification of secondary projects. One of the lessons learnt from this programme is that mining companies will have to deal with the HIV/AIDS pandemic if they are to sustain high levels of productivity into the future.

Jan 1, 2005

By D. P. Venter

When Oryx Mine down-scaled in 1994, focus was placed on development, with the primary aim being the exposure and proving of ore reserves. In order to achieve this aim, development ends had to be advanced to reef at the maximum possible rate. This in turn called for support methods which could keep up with the advancing faces, taking up minimum space and time for installation, while providing on the face a real coverage and effective long-term support. In the majority of the development ends which were located in fairly competent ground, the grouted rod development support proved to be adequate until such time as secondary support in the form of meshing and lacing could be installed. The ends developing towards the eastern boundary of the mine, especially in the ?C? block, encountered extremely adverse ground conditions due to the presence of smectite zones within the footwall quartzites. Smectites are a group of montmorillonite clay materials, mainly composed of hydrous aluminosilicates. They occur as minute platy crystals in the rock mass and are especially notable for their ability to absorb liquids. Generally, the zones are found in between the bedding planes of the host rock, and may vary considerably in thickness over short distances. Wherever the smectites were exposed by the development blasting, the rockwalls weathered as the smectites absorbed water and the condition of the tunnel rockwalls deteriorated rapidly. When the smectites were left exposed and allowed to weather, it became almost impossible to install secondary permanent support such as meshing and lacing at a later stage. To minimise the exposure time and subsequent deterioration of the smectite zones, it was recommended that all development ends encountering smectites be shotcreted as soon as possible after blasting. In developing a shotcreting support methodology, both a drycreting and wetcreting system were investigated. The situation at the time ruled out the use of a wetcreting system on the basis of the extensive and costly infrastructure required, as well as its limited manoeuverability. Instead, it was decided to opt for as maller scale but more manoeuverable drycreting system. The system utilized a number of portable drycrete machines with pre-bagged cement, which could support several development ends in close proximity. Initial trials using normal 30 MPa shotcrete on 19level proved successful and the system was implemented.

Jan 1, 1998

By F. M. C. C. Vieira

The DEEPMINE Research Programme sought to develop the technology and competence to mine gold safely and profitably at depths of 3 to 5 km. Among the many issues addressed was the stability and support of rockpasses at ultra-depth. It was found that high virgin and mining-induced stresses could cause the walls of rockpasses to spall, leading to the deterioration and failure. A comprehensive programme of numerical modelling was conducted to investigate alternative mining layouts and sequences to ameliorate the problem.

Jan 1, 2005

By X. Yu

Although many investigations of the deformation behaviour of rocks have been carried out, most of them are carried out in compression. In all rock engineering practice it is usually assumed that the deformation of rocks in tension is the same as that in compression. However, data from numerous researchers have shown that this assumption is not correct for some rocks. A new loading frame for testing rocks in compression and direct tension has recently been developed by the authors, with the capacity to conduct both compression and tensile tests on the same rock sample. The results obtained show that the ratios between the average Young?s modulus in compression (ECA) and in direct tension (ETA) are 1, 1.16, 2 and 6 respectively in four rock types tested. For Poisson?s ratios, analogous relations were obtained. It was observed that, in all cases, the tangent Young?s modulus intension reduces with an increase in the applied tensile stress, while the behaviour of Poisson?s ratio is similar, but shows greater variability. The difference between the Young?s modulus of rocks in tension and that in compression could lead, large errors in calculating induced stresses around underground openings, as well as in determining the Brazilian tensile strength of rocks. This may have a significant influence in rock engineering and therefore more investigation is necessary into the tensile deformation behaviour of rocks and its influence.

Jan 1, 2005

By A. Vorster

The objective with mine planning is to consistently deliver production conforming to quality and quantity requirements throughout the life of the mine. The complexity of the operational context of the modern mine extends far beyond the actual production actions and there is a need to find ways of analysing and managing this extended environment. A well-established approach to handling complex situations rely on the creation of representative models that use classification and visualization strategies. An example of the use of a classification scheme is the periodic table of the elements. All physical matter can be expressed as combinations of basic elements. Not only is the periodic table useful in classifying and identifying matter but it can also be used for the prediction of the properties of unknown matter and compositions of elements.

Jan 1, 2001

By M. Matema

Paper written on project work carried out in partial fulfilment of BSc (Eng.) Metallurgy and Materials Engineering Small and large welded aluminium specimens were tested in fatigue and the results compared with design curves for aluminium in specification BS8118. Metallurgical tests were also performed on the specimens in order to correlate microscopic and macroscopic phenomena. The small-scale fatigue test results were in reasonable agreement with results in BS8118, whereas the large-scale fatigue tests showed that BS8118 is conservative.

Jan 1, 2005

The optimum cut-off grade policy maximizes the net present value (NPV) of an open pit mining operation subject to the mining, processing, and refining capacity constraints. The traditional approaches to cut-off grade determination ignore the escalation of the economic parameters such as metal price and operating costs during life of an operation, and consequently lead to unrealistically higher values of the objective function. Further, the NPV of a mining operation declines due to the depletion of the available reserves, causing a decline in the optimum cut-off grade, i.e. higher cut-off grades in the early years of an operation and lower cut-off grades during the later years. Hence, low grade material mined in the earlier years may be stockpiled for processing during later years to offset the effect of escalating economic parameters on NPV. This paper demonstrates the combined impact of introducing economic parameters, escalation and stockpiling options into the cut-off grade optimization model. The model promises an enhancement in NPV as illustrated in a case study incorporating practical aspects of an open pit mining operation.

Jan 1, 2011

By P. J. Foster

A common theme running through recently introduced mining health and safety legislation in many parts of the world is risk assessment. Most recently, risk assessment legislation has been introduced across the mining industry of South Africa and the view that the introduction of risk assessment based legislation provides an ideal opportunity to improve on past health and safety performance is presented. Risk assessment techniques range from highly complex safety system techniques that are used in high technology process industries, to subjective techniques based on simple judgements that are finding use in many other industries. The objective of this paper is to shed some light on risk assessment, not by detailing the risk assessment process but by identifying the crucial elements that need to be considered if risk assessments are to be successful in changing health and safety performance. A case study is presented illustrating the introduction of risk assessment into the Ingwe Coal Corporation, one of South Africa?s largest mining houses, to indicate how the system was developed and how it is being used.

Jan 1, 1998

By A. J. Geldenhuys

This paper will focus on two topics, namely (1) an innovative process for the neutralization and partial sulphate removal of acid streams produced during coal mining and processing and (2)optimization of this integrated neutralization process by adding small amounts of synthetic organic polymers. The integrated lime and limestone process has been developed to neutralize acid mine water and to remove sulphate (to less than1 200 mg/l), magnesium and metals. Limestone and lime treatment is the most cost-effective technology for neutralization and partial sulphate removal of acidic/sulphate-rich water to sulphate levels of less than 1 500 mg/l due to precipitation of magnesium and removal of the associated sulphate fraction (through gypsum crystallization). Neutralized mine water of this quality may be suitable for irrigation. The process consists of the following stages: 1. Limestone (CaCO3) neutralization to raise the pH to 7 and CO2-production. 2. Lime (Ca(OH)2) treatment to pH 12 for Mg(OH)2precipi-tation and gypsum (CaSO4.2H2O) crystallization. 3. pH adjustment with CO2recovered from stage 1 and CaCO3 precipitation. Retention times of 1 hour, 4 hours and 1/2an hour were required by stages 1, 2, and 3 respectively. The sulphate level was reduced to 1 094 mg/l, which is less than the original aim of 1 200mg/l. Chemical costs associated with neutralization, using limestone instead of lime, are reduced by 69% in the integrated limestone/lime process. The overflow water from the clarifier of each of the above stages generally contains a wide variety of colloidal impurities that may cause the water to appear turbid or may impart colour. This results in very slow sludge settling rates that cause overflow water with a high degree of turbidity and colour. There are a number of successive or simultaneous stages involved in the agglomeration of particles. To get optimum neutralisation of the acid water and partial sulphate removal to below the saturation level of gypsum (i.e. 1 500mg/l), maximum sludge recovery is needed. The higher the concentration of seed crystals, the larger the surface area. Therefore, effective removal of suspended and colloidal matter from the overflow of each stage is required and can be achieved by coagulation and flocculation. The polymers PAC6 and 3095 were effectively used as coagulant and flocculant respectively. The addition of these polymers resulted in a clear overflow in each of the above stages with a very low turbidity.

Jan 1, 2003

By G. S. Harper

Noise in general and drilling noise in particular have received increasing attention within the South African mining industry during the last 10?15 years. The Mine Health and Safety Committee1, during their 2003 annual summit, established two significant milestones to be met by December 2008 and December 2013. The 2008 milestone target is that of no more than ten per cent deterioration in hearing among occupationally exposed individuals, whereas the 2013 milestone target is that of less than 110 dB sound pressure levels at any place in the workplace. While these targets relate to general noise within the mining industry, it is widely believed that the most significant source of noise contributing to noise induced hearing loss (NIHL) among the underground workforce, is that of pneumatic rock drills. Data pertaining to the noise emission level of any machine is generally reported as either a sound pressure level or a sound power level of a single machine measured under free field conditions as defined in Appendix 3 of SABS-ISO 37442. However, rock drills are seldom used in isolation and underground conditions cannot be considered as free field. A methodology for the selection of rock drills on the basis of total operating cost has been developed. However, this paper focuses on the noise elements of the generic methodology and provides a model for the prediction of the composite sound pressure level and the equivalent noise exposure levels of groups of individuals from machines, used singly and in combination in an underground environment based on the sound pressure level determined according to SABS-ISO 3744 under free field conditions. The methodology includes provision for the consideration of the effect of hearing protection devices and the use of multiple machines in combination and provides an indication of the potential costs of hearing compensation.

Jan 1, 2006

By M. R. Bitarafan

Mining method selection is the first and most important problem in mine design. In this selection some of the parameters such as geological and geotechnical properties, economic parameters and geographical factors are involved. The mining engineer must balance the input parameters and select the method that appears to be the most suitable; mining method selection is both an art and a science. Distinguishing all parameters that have an effect in mining method selection and in the determination of weighting factors of any parameter is a difficult task in an ordinary environment. This paper attempts to determine important parameters that impact on the mining method selection and demonstrates the calculation of the weighting factors for each selected parameter. This study has been directed to the research of a methodology for the selection of an optimal mining method. Different fuzzy methods are presented as an innovative tool for criteria aggregation in mining decision problems. Two methods of fuzzy multiple criteria decision making are used for selecting the optimal method with which to mine anomaly No. 3 of the Gol-Gohar iron mine. This paper finally presents a comparison of the selection methodologies and further discusses the most appropriate method investigated.

Jan 1, 2004

By W. Breytenbach

Traditionally, dithiocarbonates (xanthates) have been the preferred collectors for the flotation of platinum-bearing sulphides. However, collector development has led to trithiocarbonates (TTC), which have proven to be very effective bulk sulphide collectors. The interest in TTC flotation behaviour is currently focused on the interaction of these collectors with other collectors, specifically the dithicarbonates. Batch-flotation research has shown synergism to exist among dithiocarbonate, dithiophosphate and trithiocarbonate collectors. Increased sulphide recoveries, both for the first-minute and final concentrate, were realized using mixtures of these collectors relative to the standard.

Jan 1, 2003

By A. Muwila

Hercules? is a low nickel austenitic stainless steel developed at Mintek that has a typical composition of 9 wt% Mn, 0.05 wt% C, 2wt% Ni, 0.25 wt% N and 16.5 wt% Cr. A more corrosion resistant version of Hercules? (Hercules? B) with 0.5 wt% Mo has also been developed. Potentiodynamic tests performed on Hercules? B in a 5wt% sulphuric acid solution showed it to have improved corrosion resistance comparable to that of AISI 304. The effect of a varying Mn content on the corrosion resistance of Hercules? B has also been investigated and the results discussed in this paper. From the corrosion test results, it is clear that decreasing the Mn content of Hercules? B increased the corrosion rate, while increasing it decreased the corrosion rate. Keywords: austenitic stainless steel, % ferrite, molybdenum, manganese, nitrogen, electrochemical corrosion tests, potentio-dynamic scans, microstructure, chemical analysis.

Jan 1, 2007

By P. Forbes

Mining and metallurgical processing companies that have adopted the principles of good environmental management often find it difficult to carry out an environmental assessment that yields meaningful opportunities for improved performance. This topic was investigated by means of a case study of a South African Base Metal Refinery (BMR) producing primarily nickel. A process-based Life Cycle Assessment (LCA) was carried out on the refining process, with the environmental impacts related to the production of reagents and utilities forming part of the assessment. The lifecycle inventory (LCI) was based on plant operating data spanning 31 months of production, from which a baseline environmental profile could be generated and interpreted to indicate the main sources of potential environmental impacts. Consequently, opportunities for improved environmental performance could be identified from the LCA model, which expressly related potential environ-mental liability to specific sub-processes in the assessed industrial operation. The on-site steam plant was found to be the primary source of potential environmental impacts in most of the impact categories considered. In closing, the paper discusses some of the limitations encountered in use of the LCA method. Keywords: life cycle assessment; LCA; life cycle inventory; LCI; base metal refinery; improved environmental performance; environ-mental management systems; nickel refining.

Jan 1, 2000

By Basson. J., L. R. Nelson, L. A. Cramer

The South African based platinum mines produce the world?s majority of platinum metal that is used in autocatalysts and jewellery. As the platinum market is forecast to grow at healthy rates into the future, the South African producers, Anglo Platinum, Impala, Lonmin and Northam are planning to expand in the next decade. Furthermore a number of smaller producers who are accessing other mineral rights are entering the buoyant market. The South African platinum mines have traditionally exploited the Merensky reef of the Bushveld Igneous Complex (BIC); however, the mining of this reef is reaching depths that require significant vertical shaft systems and costly refrigeration for access to the ore bodies at deeper levels. In the past decade all of the producers have begun to mine the less attractive UG2 reef because of its cheaper mining costs. This UG2 reef contains significant quantities of chromite with typically a chrome-to-iron (Cr/Fe) ratio of 1.35. UG2 ores can contain between 10 and 25% Cr2O3 depending upon the reef width and the selected mining method. It is relatively cheap and easy to extract a portion of the chromite from a platinum concentrator tailings stream at a grade of between 40-42% Cr2O3. However it is only in recent years that some ferrochrome producers have begun to source some of their chromite from the tailings of platinum producers. South Africa is also the world?s largest single producer of ferrochrome and supplies much of the world?s stainless steel producers and thus the growing market for their product. As the traditional sources of high Cr/Fe ratio ores have been depleted at the shallow economic depths and thus have become more expensive sources of chromite, technical developments have improved the ability to use fine chromite economically to make acceptable grades of ferrochrome. Thus UG2 fines are now becoming possible cheap sources of acceptable feed to the ferrochrome industry. The abundance of feedstock for ferrochrome production and the lessening dependence on mined material will impact upon the structure of the ferrochrome business in South Africa. With continued platinum mining from UG2 reefs, South Africa is set to remain highly competitive in the world?s ferrochrome/stainless steel industry.

Jan 1, 2004