Search Documents

By Krogerus. H., P. Jokinen, T. Lintumaa

Keywords: Pyrometallurgy, furnace, coke, smelting charge, optimization, ferrochrome The main consumer of ferrochrome is stainless steel production. Stainless steel must maintain a reasonable price against other competitive materials. Therefore, the ferrochrome price must be low enough and profitable for the producers of stainless steel. The investment and operational costs of ferrochrome production are greatly dependent on the availability of the process and the production rate. Thus the furnace size and production rate in submerged electric arc furnaces will be greatly increased in the near future. The ferrochrome production per furnace, e.g. at Outokumpu?s Tornio Works, increased from 30 000 t/a to 165 000 t/a in about 35 years. The same trend will continue globally but now much more quickly. The Outokumpu ferrochrome process at Tornio Works uses sintered chromite pellets and upgraded lumpy ore as a chromite source. Metallurgical coke is used as a reductant. Reliable smelting in a large furnace demands the correct charge composition and well-known characteristics of the charge components. The quality and electrical conductivity of cokes (normally used) has the most important role for the electrical conductivity of the smelting charge. The results of the measured electrical conductivity of different cokes and the smelting charge with many controlling factors are presented here. These measurements were performed over the years for our own purposes at the laboratory of Outokumpu Research Oy (ORC), in Pori, Finland.

Jan 1, 2006

By W. Wittke, J. Gattermann

ABSTRACT: One alternative to close a radioactive waste repository in rock salt is the construction of a “Cross Section Closure (CSC)“ sealing barrier. The proposed material for the CSC is highly compacted bentonite. To investigate the swelling behaviour of a highly compacted bentonite a large number of laboratory tests were performed. In addition, large scale model test were carried out to demonstrate the development of a nearly homogeneous and isotropic swelling pressure. The results of the large scale model tests were interpreted numerically based on the models for stress-strain behaviour and water uptake which are implemented in the finite element codes FEST03 and HYDOPO. The investigations show a good agreement of the results of the model tests and the corresponding analyses and show, that the theoretical models are capable of describing the behaviour of sealing structures based on highly compacted bentonite. ZUSAMMENFASSUNG: Eine Möglichkeit für den Verschluß eines Endlagers für radioaktive Abfälle im Steinsalz ist die Konstruktion einer Querschnittsabdichtung aus hochverdichtetem Bentonit. Zur Untersuchung des Quellverhaltens von hochverdichtetem Bentonit wurden eine große Anzahl von Laborversuchen durchgeführt. Um die Entwicklung eines nahezu homogenen und isotropen Quelldrucks nachzuweisen, wurden darüber hinaus auch Modellversuche in größerem Maßstab durchgeführt. Die Ergebnisse dieser Modellversuche wurden im Hinblick auf die Wasseraufnahme und das Spannungs-Verformungsverhalten mit Hilfe numerischer Berechnungen mit den finite Element Programmen FEST 03 und HYDOPO interpretiert. Die Untersuchungen zeigen gute Übereinstimmungen zwischen Versuchs- und Berechnungsergebnissen. Die numerischen Modelle sind somit geeignet, das Verhalten von Abdichtungsbauwerken aus hochverdichtetem Bentonit zutreffend zu beschreiben. RÉSUMÉ: Une possibilité pour fermer un dépôt final de déchets radioactifs dans sel gemme est la construction d'un étanchement de coupe transversale, fabriqué de bentonite fortement compacté. Pour étudier le comportement de gonflement de bentonite fortement compacté, de nombreux essais en laboratoire ont été exécutés. En outre, des essais sur modèle sur une plus grande échelle ont aussi été exécutes afin de prouver le développement d'une pression de gonflement à peu près homogène et isotrope. Les résultats de ces essais sur modèle étaient interprétés en vue de l'absorption d'eau et du comportement contraintes-déformations par le moyen de calculs numériques avec les programmes d'éléments finis FEST03 et HYDOPO. Les études montrent de bonnes conformités entre des résultats d'essai et de calcul. Les modèles numériques sont ainsi capables de décrire justement le comportement d'ouvrages d'étanchement fabriqués de bentonite fortement compacté.

Jan 1, 2003

Since 2001, the Hybrid Stress Blast Model (HSBM) project members have developed a software suite to model the complete blasting process from non-ideal detonation to muck pile formation. To preserve the physics and improve solution time, the breakage engine uses a combination of analytical models and 2D axisym-metric finite differences to model near-field crushing, coupled to 3D discrete lattice fracturing and distinct element numerical methods to model throw and muck pile development. The model has been validated by comparison with laboratory and field tests in kimberlite. Multiple blasthole simulations are used to demonstrate how changes to blasting parameters can influence downstream efficiencies. Case studies of wall control blasting show that the presplit design must balance the two opposing effects of increased damage with increased charge and decreasing attenuation of the seismic waves with decreasing charge. Modelling of decoupled explosives needs further development. Reducing the charge towards the back of the trim blast results in a much more significant decrease in back damage than altering the timing. The model demonstrates how separation along the weaker planes in a jointed rock can coarsen the fragmentation, leading to inefficient beneficiation, and extends the damage to a distance of at least twice the burden behind from the blasthole, severely compromising the wall stability.

Jan 1, 2012

By V. V. Nazimko, A. I. Hohotva, S. N. Alexandrov, V. P. Sazhnev, V. S. Zaharov

Ground behaviour in the vicinity of a roadway has been investigated using a physical model and in situ tests during a roof fall. It was discovered that behaviour of the ground is governed by irreversible displacements of adjacent rock clusters. The cluster is a short-living sector of a rock mass that moves as a solid body. For the lack of degree of freedom, the rock mass must be divided into clusters that are forced to move one after another in space and in time. These clusters permanently rearrange and reform during irreversible (inelastic) ground deformation. The crowded clusters have to yield to each other and alter their velocity and direction of movement to accommodate their motion into the excavation. Such behaviour involves uneven and irregular vertical deflection and the movement of adjacent rock blocks in the roof, sides and floor of an opening. Such movement destroys the symmetry of horizontal displacements with respect to the centre line of the opening. A set of indicators that a roof fall is imminent has been identified. Horizontal displacements and dilation must be controlled in order to maintain the stability of an underground opening. Such a state retains the self-supporting effect of the roof and contributes to rock bolts bearing capacity.

Jan 1, 2003

By R. Shen

This paper presents results of a feasibility study of recycling manganese furnace dust generated in production of ferromanganese and silicomanganese at Tasmanian Electrometallurgical Company, Australia. Dried manganese furnace dust contains about 20 wt% of carbon, in average 33.4 wt% of manganese and 1.3 wt% of zinc. Manganese in the dust is in the form of MnO, Mn3O4 and MnCO3; zinc is mainly in the form of ZnO andZnSO4. Analysis of the zinc balance with dust recycling showed that to keep zinc intake at the acceptable level, it should be partly removed from the dust. In the reduction laboratory experiments, zinc oxide was reduced to zinc vapour by tar of the dust. Reduction of zinc oxide started at 800°C and zinc removal rate increased with increasing temperature; removal of zinc was close to completion at 1100oC. Optimal conditions for removing zinc from the dust include temperature in the range 1000-1150°C, inert gas atmosphere and furnace dust fraction in the furnace dust-manganese ore mixture above 60%. In the sintering of manganese ore with addition of manganese dust in the sintering pot, zinc was reoxidised and deposited in the sinter bed. Removal of zinc in the sintering pot tests was in the range 4-17%. Up to 30% zinc removal was achieved from the bottom layer of the sinter bed. It can be concluded that zinc removal will be low during the processing of manganese furnace dust in the sinter plant. The zinc removal rate will be the highest when pelletised manganese furnace dust is added to the bottom layer of the sintering bed.

Jan 1, 2007

By B. Leong, H. Joubert

Keywords: Pyrometallurgy, furnace, auxiliary equipment, copper slag launders Pyromet has designed copper launders for tapping slag. What makes Pyromet?s launder design innovative and safe is that it does not have any cooling water channels underneath the launder runner, whilst achieving effective cooling of the runner. If matte burn-throughs were to occur through the launder runner, the risk of damaging water channels and the risk of explosions are reduced. In addition, since the cooling water channels are not harmed, the launder is easily repairable and reusable. Pyromet makes use of Finite Element Analysis to optimize the launder geometry to ensure that sufficient energy is removed from the centre of the launder. Factors considered during the launder design include the suitability of the geometry to the client?s needs, experience from existing installations, and ease of fabrication. Pyromet goes so far as to develop procedures for fabricators to ensure that fabrication issues do not compromise the functionality of the launder. When launder orders are received by Pyromet, the entire fabrication process and the functioning of the launders during operations are monitored to ensure that the launder designs are continuously improving with every installation.

Jan 1, 2006

By S. Ndlovu

To investigate the influence of orientation of crystal lattice on the bacterial leaching of pyrite crystals, single crystals of 100, 111 and110 plane orientations were used for the study. Experiments were carried out in the presence of a Thiobacillus ferrooxidans culture. The different corrosion patterns observed on the surfaces of the bioleached samples suggests a variation in cell-surface interaction from one crystal plane to the other. The surface corrosion patterns generally reflected the influence of the symmetrical arrangement of the atomic planes in the lattice on which they formed. The results indicate that the surface properties of mineral sulphides may control the evolution of corrosion patterns and consequently the initial oxidation process in acid bacterial leaching.

Jan 1, 2004

By M. Natarajan, C. J. Cutler, E. Mponda

Keywords: Pyrometallurgy, furnace, KCM Nkana, Zambia The Nkana smelter was initially commissioned in 1931, with two reverberatory furnaces, two Peirce-Smith converters, and blister copper casting facilities. Reverberatory furnaces were the mainstay of production up until 1994, when an El Teniente Converter (CT) was installed to upgrade reverberatory furnace matte to white metal, prior to converting in conventional Peirce-Smith (PS) converters. In 2000, a decision was taken to increase the proportion of concentrate smelted in the CT by introduction of bone-dry concentrate injection through the tuyeres. A flash dryer with a nominal capacity of 1 200 metric tons per day of dry product, and associated tuyere injection system was commissioned in March 2004. Based on the projected concentrate arisings from the KCM mines into the future, as seen in 2004, it was decided to develop the CT to be the primary smelting vessel at Nkana, to handle a minimum of 1 250 tons per day of concentrate, and to operate only one reverberatory furnace in slag-cleaning mode pending a full evaluation of alternative slag-cleaning technologies. The anticipated cathode production from Nkana was to be in the range 140 to 150 000 tons per annum. This paper details the outcomes from trials that were carried out in August and September 2004, using two reverberatory furnaces for slag cleaning. The results of these trials, plus further work in October and November, provided confidence to move to one reverberatory furnace for slag cleaning in December 2004. With the advent of Vedanta as the majority shareholder in KCM at the end of 2004, the approach has been to maximize the available smelting capacity. Currently, two reverberatory furnaces and the CT are on-line, with the higher silica concentrates going to the reverberatory furnaces with an appropriate amount of pyrite, and the cleaner concentrates going to the CT. Expansion of the smelter is currently under investigation.

Jan 1, 2006

Cokriging uses a sparsely sampled, but accurate and precise primary dataset, together with a more abundant secondary data-set, for example grades in a polymetallic orebody, containing both error and bias, to provide improved results compared to estimation with the primary data alone, as well as filtering the error and mitigating the effects of conditional bias. The method described here may also be applied in polymetallic orebodies and in other cases where the primary and secondary data could be collocated, and one of the data-sets need not be biased, unreliable, etc. An artificially created reference data-set of 512 lognormally distributed precious metal grades sampled at 25×25 m intervals constitutes the primary data-set. A secondary data-set on a 10×10 m grid comprising 3200 samples drawn from the reference data-set includes 30 per cent error and 1.5 multiplicative bias on each measurement. The primary and secondary non-collocated data-sets are statistically described and compared to the reference data-set. Variograms based on the primary data-set are modelled and used in the kriging of 10×10 m blocks using the 25×25 m and 50×50 m data grids for comparison against the results of the cokriged estimation. A linear model of coregionalization (LMC) is established using the primary and secondary data-sets and cokriging using both data-sets is shown to be a significant improvement over kriging with the primary data-set alone. The effects of the error and bias are filtered and removed during the cokriging estimation procedure. Thus cokriging using the more abundant secondary data, even though it contains error and bias, significantly improves the estimation of recoverable reserves.

Jan 1, 2014

A physical modelling study has been carried out to simulate the slag-metal dispersion induced by a high-strength bottom gas injection. Water and kerosene were utilized to simulate metal and slag respectively. A water model of CLU (Creusot-Loire Uddeholm)vessel was used with three different nozzle orientations, namely, off-centre, triangular off-centre and centre. The gas flow rates changed from 0.00599 m3/s to 0.01081 m3/s. Height of heavy and light phases was kept fixed at 0.23 m and 0.02 m respectively. The dispersed phase hold-up was determined at various axial and radial distances, gas flow rates, and tuyere configurations. The observations revealed that at a fixed gas injection rate, as the vertical distance increased in the centerline, straight off-centre orientation resulted in greater dispersed phase hold-up values than those of the centre configuration and the triangular off-centre orientation. The dispersed phase hold-up was found to increase with gas injection rate and decreased with axial distance. The variation of the dispersed phase hold-up with the dimensionless axial distance and the gas injection rate was correlated by using the modified Froude number. The experimental values of the dispersed phase hold-up were found to be in reasonable agreement with the correlated values obtained from the modelling equations. The findings of the present study may be utilized in the ferroalloy refining vessels in terms of designing tuyere locations for optimum processing conditions.

Jan 1, 2004

Decision-making regarding plant-scale reagent dosage regimes and air rates is a topic of ongoing investigation and high importance. The current work explains some techniques that have proven useful in deciding on plant-scale flotation operating regimes. Specific focus has been placed on the reagents: frother and depressant, as well as some discussion around the control of air rate and froth depth. Air rate has been selected based on its effects on the froth phase. Froth velocity and froth height above the cell lip are the two variables measured and used to select the operating air rate. Pulp level is then adjusted to increase or decrease mass pull. A technique has been developed using the Anglo Platinum Bubble Sizer on an industrial flotation cell to determine the relationship between bubble size and frother concentration. This technique has been extended to measure the equivalent frother concentration or frothabilities of various streams on a rougher bank. A mass balance for frother was performed successfully, and this provided a better understanding of the way frother moved in the rougher bank. With this knowledge, more informed decisions can be made about frother addition required in subsequent flotation stages. For depressant, a new protocol for deciding on dosage rate has been developed. The depressant dosage should be based on the amount of fresh feed material reporting to a bank. Currently 400 g per ton of fresh feed has been assumed a reasonable starting point, with promising results. Improved froth stability and grades were observed. There is scope for more accurately defining the optimal dosage rate. Importantly, the combined effect of changing the chemistry and the hydrodynamics together has been demonstrated. A significant upward shift in the grade-recovery relationship for a cleaner bank was observed.

Jan 1, 2013

By F. Peer

In most coal preparation processes, water is a necessary medium, but the presence of water in coal after it has been cleaned has a negative impact on transportation costs, handling and specific energy values. The utilization of super absorbent polymers (SAP) in the nappy application is well known. The concept of utilizing these polymers was investigated for the purposes of dewatering coal and other fines, generated by preparation processes such as flotation. SAPs are granular highly cross-linked synthetic copolymers with excellent water-absorbing properties. The dewatering process is characterized by three main stages: (a) contact of super absorbent polymer with high-moisture fine coal; (b) separation of dewatered fine coal from super absorbent polymer; and (c) regeneration of used super absorbent polymer, by exploiting its response to changes in conditions such as pH or temperature. Preliminary tests showed the separation step to be very difficult. The novel idea of encasing a given amount of polymer in a water permeable cloth solved this problem (of separating the swollen polymer from the dewatered coal). Preliminary tests investigating the effectiveness of the sachets of polymer showed a drastic decrease in the moisture contents of slurries. Furthermore, it was shown that it was possible to regenerate the polymer (still within the sachets) through thermal drying. A full-scale experimental programme was then followed to accurately determine the feasibility of using sachets of SAP. The experimental variables were initial slurry moisture content and polymer dosage. It was observed that the sachets seemed to work fastest and most effectively at high moistures and also at higher dosages of SAP. Regeneration of the polymer was also investigated, using two methods: thermal regeneration and pH-induced regeneration. The experimental variables, for investigating the regeneration process, were method of regeneration and grade of water used. Thermal regeneration at 70°C seemed to work successfully. Although the cost of using thermal energy is still a problem, the safety aspect (fire hazards) has been addressed since the polymer does not ignite when heated, unlike fine coal particles that may do so. The alternative method of regeneration, which exploits the pH-sensitivity of the polymer, was less successful, and further work needs to be conducted.

Jan 1, 2003

By L C. Pretorius

Pipe pigging is a technique for the in situ (field) coating application, to create a seamless internal anti-corrosive lining of long pipelines. The technology originated in the cleaning of pipes, and these proven cleaning methods continue to be used today. Firstly mechanical cleaning of the pipeline is performed, using wire brush, razor back, course stud and fine wire pigs, then foam pigs, or criss cross pigs, and urethane blade scrapers to remove loose debris, wax, residual hydrocarbons and corrosion products from the pipeline. Part of the proprietary techniques and expertise is to ensure that these cleaning pigs do not get stuck Next chemical cleaning of the pipeline is performed, using repeated pig runs with detergents, solvents, acid etching, corrosion inhibitors, consecutively batched between two pigs, to ensure a clean, dry metal finish to a visual cleanliness standard of ISO SA2½. These in situ techniques were developed, 40 years ago to apply internal corrosion protection to pipes using a thin layer of epoxy based paint (50 to 100 micron). Until recently these old techniques were never improved upon. Although many thousands of kilometres of pipes were successfully coated with these thin film epoxy based paints and old application techniques, these thin paint films had problems in weld coverage, and were also unable to fill pits caused by pitting corrosion, and unable to replace metal loss caused by channel erosion. New coating material developments, revised application methods and modified pigging equipment have now made it possible to apply thick film coatings as corrosion barriers to the internals of pipes in the field, using these pigging techniques. The thick coating films can be up to 1 mm (40 mils) thick in a single coating run over long distances. The new thick film coating materials and application techniques are similar to continuous screeding, creating a far more robust seamless internal pipe lining when compared to the old technology of thin film paints. With thick film polymers the option now exists to create a structural GRP pipe within a pipe, be it steel or cementicious. It has been preferable, even necessary, to move away from the traditional epoxy paints and coatings. It was found difficult or impossible to use epoxy materials for these pipe coating applications due to the requirement for achieving a suitable viscosity with adequate hold up. In order to reduce epoxy viscosity a solvent or reactive diluent is required. This inevitably lead to solvent entrapment and poor cure characteristics in cold climates. Further mud cracking in over thick areas, the inability to extend or reduce pot life, poor control of cure time and limited resistance to aggressive or chemical environments made solvent based epoxy resins a poor choice.

Jan 1, 2006

By S. Z. Pethö

Pillar extraction at shallow depths with small pillars that were not originally intended for secondary extraction can provide a huge benefit to the coal mining industry in those areas where a significant percentage of the remaining coal reserves are locked up in small pillars at shallow depths and where opencast mining methods are simply not as cost-effective and practical to implement. A system considering all of the pertinent geotechnical and mining aspects for the safe and efficient pillar extraction of small pillars at shallow depths at Xstrata Coal South Africa (XCSA) has been further developed and implemented as part of an ongoing improvement process addressing all of the relevant legal and associated risk aspects. This work follows on from the previous pillar extraction work carried out at the ATC, Boschmans, and Spitzkop Collieries. The process involved a number of in-house workshops and sessions arranged with all key personnel from Tavistock Colliery, and also included Professor Nielen van der Merwe of the University of the Witwatersrand, a world renowned authority on pillar extraction, towards reviewing and developing the Modified NEVID pillar extraction system employed previously at Boschmans Colliery. The system is currently being employed at Tavistock Colliery with success and no major accidents, with around 655 000 t of coal having been successfully extracted from the pillar extraction panels.

Jan 1, 2012

Poorly designed sampling protocols generally result in high project risk by artificially increasing grade variability (ie the nugget effect). Sample collection, preparation and assay protocols that suit the ore type, together with QA/QC systems, will reduce this risk. All reporting codes (eg JORC, 2004) require the Competent Person to consider the quality and implication of sampling and assaying programs. High sampling errors beget higher project uncertainty; despite this fact, sampling does not receive the attention it deserves. The case studies presented show that many sampling issues frequently go unrecognised or unaddressed, resulting in poor project decisions during exploration through to feasibility and production. The overall conclusion is that correct sampling is critical to mining project success and that there is often a need for its optimisation.

Jan 1, 2007

By M. J. Leeuwner

Computational fluid dynamic (CFD) modelling is used to research the complex flow structures that exist in a hydrocyclone. By simulation of a two phase (water and air) flow system, the internal flow and multiphase interactions are investigated. The suitability of CFD modelling as a design tool is further evaluated by examining the effect of varying device dimensions. Three hydrocyclone geometries, used in previous studies, are specified. A transient simulation approach, which employs the Reynolds Stress Model as turbulence model and the Volume of Fluid model as multiphase model, is followed. Results are validated qualitatively against experimental measurements from the previous studies. Keywords: CFD modelling, hydrocyclone, Reynolds stress model, multiphase flow

Jan 1, 2008

By O. Naiker

Xstrata has modified and improved on the solid state reduction of chromite (SRC) process that was pioneered by Showa Denko in Japan and previously used at Xstrata?s Lydenburg plant. The history of pre-reduction is a long one, with the SRC process being the first and only commercially successful one prior to Premus. Krupp developed the chromite direct reduction and the rotary hearth for the pre-reduction of chromite. However, these processes have not been successfully commercialised. The are a number of significant differences between Xstrata?s patented Premus and the original Consolidated Metallurgical Industries (CMI) process. These include, the use of lower cost anthracite fines as the reductant source together with the use of unactivated bentonite as the binding agent. In addition the use of oxygen as an energy source is used in Premus but not in the original CMI process. There was a fundamental change in the operational philosophy of the process in that while the original CMI process aimed to maximize metallization of the pellets, the Premus process seeks to maximize the energy output from the kiln while still achieving the required efficiencies and hence increasing furnace output. Premus is designed to reduce electrical energy consumption, provide high recoveries of metallic oxides, and utilizes low cost reductant and energy sources such as anthracite and oxygen respectively. Due to the fact that Premus is one of the most technologically advanced and competitive processes used today in the production of ferrochrome it was the process selected for Xstrata?s new ferrochrome facility, Project Lion, that is due to be commissioned in the third quarter of 2006 in the Steelpoort Valley in Mpumulanga, South Africa.

Jan 1, 2007

The Skorpion process comprises three processing steps, atmospheric leaching in sulphuric acid, zinc solvent extraction and electrowinning to produce special high grade zinc. The major mode of impurity transfer was attributed to crud runs in the solvent extraction circuit. Crud may be described as a heterogeneous, partly inorganic, partly organic mass of material which accumulates predominantly at the interface between organic and aqueous solutions. The paper describes the route causes of the crud formation in the solvent extraction circuit and optimisation strategies which are being followed to prevent impurity excursions in electrowinning. Keywords: zinc oxide, solvent extraction, crud formation, colloidal silica

Jan 1, 2007

By T. A. Ngcobo

Paper written on project work carried out in partial fulfilment of BSc Eng (Mining)degree The purpose of this report is to assess the risks faced by mines in dolomitic compartments in particular Kloof 8 shaft. The dolomites of the West Rand comprise one of South Africa?s most natural water resources, and overlie the reefs of the richest gold mines in the world. The pumping of water from the dolomitic aquifers to prevent flooding has caused the natural water table to subside, and the resulting cavities within the dolomite rock formations that overlie many gold deposits sometimes collapse, causing sinkholes. These impacts of the mining industry could worsen over time if preventative measures are not taken. This report discusses these impacts in detail, more specifically the risks to which operations in dolomitic compartments are exposed. A risk analysis was carried out to access the risks that the organization could face and it was this analysis that allowed one to examine the best methods to combat the problems. Other factors such as geological features and seismic events were also considered for the evaluation. To aid with the completion of this work various resources were utilized. A literature study was undertaken, information was gathered from various experts who specialize in dolomitic studies, evaluations were conducted and conclusions reached. The results from the project indicated that preventative measures should be implemented and correct procedures put in place to prevent any disasters.

Jan 1, 2006

The latest Draft MPRRB was released for public comment in October 2006. The main purpose of the Bill is to collect royalties at mines developed in terms of new-order mineral rights granted through the MPRDA process. The transition phase stipulated in the MPRDA will be completed by 1 May 2009, on which date mineral royalties will become payable to the state. The royalty rates stated in the MPRRB differ from mineral to mineral and also depend on the degree of refinement. Gold is the subject of this paper, where the royalty rate ranges from 1.5% (for refined gold) to 3% (for unrefined gold) of sales revenue. This royalty is payable regardless of profit, with a maximum 75% relief for loss-making mines. The purpose of this paper is to establish whether or not it would be necessary for gold mines to adjust their mineral reserve statements as a result of this Bill. The methodology is to add the royalty costs stipulated in the MPRRB to the actual quarterly information for the past ten years as reported by the gold-mine members of the COM. The rationale is to investigate the impact this Bill (in its current form) would have had on gold reserves that must be left unmined in the ground because of a higher pay limit. The results of the study point to a significant impact on reserves available for mining with the subsequent shortening of mine lives and retrenchment of workers. Had the MPRRB been effective for the 10 years prior to 1996, it would have resulted in 46 tonnes of gold being sterilised. Stated alternatively, 30 700 workers at COM gold mines alone would have lost their livelihoods.

Jan 1, 2007