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By B. G. Russell

A wide range of minerals is found within the Republic of South Africa, many of which are exploited to a greater extent than in similar deposits found elsewhere. It is often asked whether this is atributed to the high grade of the ores encountered in this country, or whether such factors as fiscal and Infrastructural incentives create an economic climate that has en bled the mining industry to successfully extract and market minerals at a profit. This paper views South Africa's mineral resources in a regional and global context In an attempt to place the country's geological wealth in perspective. It represents the author's own Views, and not necessarily those of the Department of Mine al and Energy Affairs.

Jan 1, 1986

By S. Burks

This paper develops the themes explored by the authors at the Fourth International Platinum Conference,. Optimization techniques can be used to significantly increase the value of mining businesses by enabling better long-term planning decisions. Open pit and underground mine design, mine scheduling, cut-off grade and blending, stockpiling, and the linking of these to flexible elements of the metallurgical recovery processes are all evaluated together. Transport or sale of intermediate products and the requirements of the product metal markets can also be considered. Experience shows that net present value (NPV) can potentially be increased by 5-35 per cent or more, usually even before the expenditure of significant amounts of project capital. The case studies presented include: > An existing operation with multiple open pits and PGM concentrators linked to offsite downstream processing facilities, and with infrastructure constraints for which the scheduling of current operations and the potential for expansion were investigated > An existing operation with an integrated portfolio of mines, concentrators, smelter, and refinery, for which the various possible sources of ore for processing were prioritized to match the downstream process plant constraints and the product markets > An underground operation in Zimbabwe for which the optimum mining width was calculated and expansion plans were evaluated > An underground mine with many separate mining sections, for which a revised schedule was developed aiming to keep the shaft system and processing plant at capacity with the highest net value material available at any time throughout the life of mine. In the concluding section of the paper, a few brief notes are included suggesting how the strategic recommendations from enterprise optimization studies may be implemented by the owner's team.

Jan 1, 2013

By J. H. Rhee, H. B. Ku, J. S. Lee, H. J. Park, B. S. Jang

A large wedge failure had occurred in the study area which was under construction. Therefore, in order to analyze the potential instability for this rock slope, the authors conducted numerical analysis with DEM and then the behaviour of rock mass was analysed after appropriate reinforce-ments were applied. Ein großer Keildefekt geschah in dem Untersuchungsgebiet, das im Bau befindlich ist. Deshalb, um die potentielle Unbeständigkeit für diesen Felsenabhang zu analysieren, führen die Urheber zahlenmäßige Analyse mit DEM. Und dann wird die Bewegung der Felsenmasse ana-lysiert, nachdem angemessene Verstärkungstruppen angewandt werden. Un grand échec de coin sèst passé dans le région étudié qui était en construction. Par conséquent afin d’analyser linstabilité potentielle de cette pente de roches, les auteurs ont mené une analyse numérique avec DEM. Ensuite le comportement de la masse de roches pourrait être analysée après les renforts appropriés étaient appliqués.

Jan 1, 2003

By S. F. Burks

"This paper develops themes explained at two SAIMM platinum conferences. Optimization techniques can be used to significantly increase the value of mining businesses by enabling better long-term planning decisions. Open pit and underground mine design, mine scheduling, cut-off grade and blending, stockpiling, and the linking of these to flexible elements of the metallurgical recovery processes are all evaluated together. Transport or sale of intermediate products and the requirements of the product metal markets can also be considered. Experience shows that net present value (NPV) can be increased significantly, usually even before the expenditure of significant amounts of project capital. Recent studies of NPV have aimed to simultaneously evaluate the impact of the optimized financial solution on the non-financial features of a project or operation.The case study presented comprised a commercially orientated review of the prefeasibility study designs and cost estimates of a platinum group metal (PGM) project in South Africa, followed by value chain optimization and sustainability studies of the project carried out simultaneously to identify potential value uplifts to be gained and guide the owners’ team going forward into the feasibility study phase. Some of the major aspects of the project that were found to have significant potential to add value included enhancement of the business model by the application of activitybased costing and theory of constraints, focus on the highest net value portions of the orebody in the early years of production, enhanced and optimized scheduling of the underground mining operation, application of dynamic grind and percentage mass recovery from ore to flotation concentrate (also known as percentage mass pull) to optimize revenue, application of elevated cut-off grades early in the life of mine, matching of the mining and processing capacity, expansion of the operation subject to capital availability, and installation of downstream processing facilities subject to regional third-party capacities.The investigation of non-financial project features focused on demonstrating that a financially optimized solution could also have a number of other benefits. These are mentioned briefly in the paper, which aims to present the status of the project at an early stage of its development."

Jan 1, 2016

By S. D. Dladla, S. Ramsamy

The majority of the tailings dam operations in South Africa will be required to comply with the new Global Industry Standard on Tailings Management (GISTM) within the next one to three years, depending on the dam classification and the requirements of the respective investors and insurers. With up to 72 auditable requirements, the implementation of the Standard needs careful planning and prioritization. This paper focuses on the practical steps to GISTM compliance for tailings facilities in operation in South Africa. The discussions are based on current practices, South African regulations, and industry standards requirements. The possible changes in dam classifications and the associated requirements are presented.

Jun 2, 2022

By J. W. van der Merwe, A. S. Bolokang, M. J. Phasha, V. J. Matjeke, C. Moopanar

"Excessive wear rates on railway wheels can result in rolling-stock derailments. If wear is detected early the possible derailments can be prevented by prematurely replacing wheelsets, although the inventory cost and maintenance downtime remain a challenge. In the current study, wheels were introduced and monitored in-service for two years to investigate the cause of excessive wear rates. The wear rates and stresses were calculated for the wheels suitable for a maximum load of 26 t per axle. Microstructural and mechanical properties were analysed. As expected, the general microstructure of all the wheels tested was pearlitic. Although all the wheels complied with the tensile strength requirements, stress calculations confirmed material distortion on excessively worn wheels whereas trial wheels revealed yield strength exceeding the yield criterion. High wear rates observed on the wheels were a result of low yield strength relative to the load per axle. The typical wear mechanism found was due to a combination of rolling contact fatigue and abrasive brake wear. Despite compliance of the wheels with existing requirements regarding material and mechanical properties (hardness, ultimate tensile strength), it is recommended that the yield strength must also be taken into consideration as a critical parameter.IntroductionRailway wheels are used to support the wagon mass and guide the wagon along the tracks (Park, 1974). The wheels and rails must be able to tolerate the applied tangential forces in order to effect wagon dynamic performance and reduce material deformation (Ghidini et al., 1994; RSE_TE_SPC_0045, 2011; AAR M107/M 208 Specification, 2011. Over the past ten years, the South African coal wagon maintenance depot has experienced excessive hollow wheel wear rates on the heavy haul line wheels. The maximum load of Jumbo wagons on the coal line is 104 t, or 26 t per axle. Although the maintenance intervention cycle for wheelsets was two years, between February 2011 and August 2012 some wheels experienced excessive hollow wear. Hollow wear is regarded as wear exceeding 2 mm on the central portion of the wheel tread (RSE_TE_SPC_0045, 2011). This happened despite the fact that these wheels were manufactured and certified according to the requirements of AAR M107/208 standard for carbon steel wheels (AAR M107/M 208 Specification,. 2011) and the local wheel RS/ME/SP 021 standard specification (RS / ME / SP / 021 REV 5 (2013). The AAR standard only specifies a minimum hardness as a required mechanical property and the local standard specifies hardness and minimum tensile strength only. In general, an increase in hardness will improve the rolling/sliding wear resistance of steel. This relationship of hardness and wear resistance was found to be true only in a situation where solid and similar alloys are in contact (Singh, Khatirkar and Sapate, 2015). The sliding wear resistance of a material is usually estimated using Archard’s equation (Liu and Li, 2001)."

Jan 1, 2016

By J. N. Van der Merwe, D. P. Roberts

The two components of pillar design formula being used in South Africa are pillar strength and pillar load. While considerable effort has been directed to the determination of pillar strength, the other half of the safety factor equation, the load, has not received the same amount of attention. The load acting on pillars has always been calculated using the Tributary Area Theory (TAT). This paper summarises the recent studies on coal pillar loading using various numerical models. It concludes that although there are meaningful differences under certain circumstances, there is still a compelling argument to use the TAT in coal pillar design. Les deux parties composantes de la formule de conception de pilier généralement utilisée en Afrique du Sud sont la résistance de pilier et la charge de pilier. Tandis que des efforts considérables on été dirigés vers la détermination de la résistance de pilier, l’autre moitié du facteur de sécurité n’a pas reçu la même attention. La charge agissant sur les piliers a toujours été calculée avec la Théorie d’Aire Tributaire (TAT). L’étude présente résume les études récentes sur la charge de pilier de charbon utilisant des modèles numériques variés. La conclusion est que bien qu’il y ait des différences significatives selon les circonstances, il y a toujours un argument puissant pour utiliser le TAT dans la conception de pilier de charbon. Die in Südafrika für die Auslegung von Pfeilern verwendeten zwei Formelkomponenten sind Pfeilerstärke und Pfeilerbelastung. Während beträchtlicher Aufwand zur Bestimmung der Pfeilerstärke gemacht wurde, wurde der anderen Hälfte der Sicherheitsfaktorsgleichung nicht die gleiche Aufmerksamkeit gewidmet. Die auf die Pfeiler wirkende Last wurde immer unter Verwendung der Tributary Area Theory (TAT) berechnet. Diese Arbeit fast neuere Studien betreffend der Belastung von Kohlepfeilern unter Verwendung verschiedener numerischer Modelle zusammen. Die Schlussfolderung ist, daß obwohl unter bestimmten Vorraussetzungen bedeutende Unterschiede existieren, nach wie vor ein bezwingendes Argument besteht TAT in der Kohlepfeilerauslegung zu verwenden.

Jan 1, 2003

By C. Yi, M. Onifade, B. Genc, S. Dineva, T. Zvarivadza, M. Khandelwal

Deep hardrock mines worldwide increasingly face rockbursts as mining depths increase. These events result from the accumulation and sudden release of stress, causing rockmass damage and posing major safety and operational challenges. This paper focuses on destress blasting as a critical strategy to mitigate rockburst hazards. Although limited practical experience exists in Swedish deep hardrock mines, international case studies demonstrate that, when well implemented, destress blasting redistributes peak stresses by promoting controlled fracturing around mining excavations. The success of such techniques is highly dependent on site-specific factors such as stress regime, rockmass brittleness, structural geology, and blast layout. Although destress blasting is especially effective in massive, brittle rock under high stress, typical conditions for strainburst prone environments, its design cannot rely solely on numerical models. Simulations can offer preliminary evaluation of stress redistribution trends and guide early design assessments but their current limitations, including sensitivity to input data and simplified fracture mechanics, mean they are best used as supplementary tools rather than final decision-makers. Field trials, supported by microseismic analysis and fracture mapping, remain essential for validation. The study critically synthesises international experiences and presents a structured framework for destress blasting design, offering practical and academic perspectives aligned with Swedish geological conditions to support safer and more efficient application in deep hardrock mines.

Jun 27, 2025

By Z. Saw, C. Poveda, N. L. Mai

Optimising the throughput of a mining network comprising all equipment from shovels to semi-autogenous grinding (SAG) mills is a complicated task, yet the potential benefits can be significant. Key modelling challenges stem from the sheer number of possible routes which material can travel, different equipment operating under different constraints, and the rate of SAG mills being calculated through a nonlinear function of the blended materials’ rock attributes. Nevertheless, this is an ideal onapplication area of mathematical programming, a branch of operations research. This paper describes an application of mixed integer linear programming (MILP) to optimise the mining equipment network of one of the world’s largest copper mines.The model takes as input a year-long monthly mine schedule of shovels in different pits, pushbacks, sequences and faces which produce material to be moved through a network of crushers, conveyors, silos, distributors, stockpiles and SAG mills, ultimately outputting a daily operational plan for all equipment that maximises the throughput of the network. All operational constraints and business rules are considered, including three quality attributes of copper ore. Comparing model results with actual data shows an improvement of 4.47% in network throughput tonnage. Additionally, although the model is solved using a free, open-source solver, optimal solutions are still achieved within a practical timeframe.

Sep 1, 2021

By B. C. Alberts

Planning the use of South Africa's energy resources, especially coal, is of the utmost importance. The State and the mining industry require reliable official estimates of the economically mineable coal reserves for planning purposes. An overview of al the previous reserve estimates is given, with specific attention to the two most recent estimates-those of Petrick and De Jager. The differences between these two estimates are highlighted. The following important aspects are discussed: . the need to update the information regarding South Africa's mineable coal reserves, . the necessity of understanding and agreement between the coal-mining industry and the State department responsible for updating the coal-reserve data, and . the importance of the specific assumptions used in the updating of the data. A downward adjustment of mineable reserve figures is proposed, and the factors that influence the meaningful exploitation of the coal reserves are discussed. A recommendation is made as to how the Waterberg coal reserve should be exploited, and it is concluded that the Soutpansberg Coalfield cannot be exploited economically in the foreseeable future. An evaluation of the status of the coal-export trade is made and compared with the assumptions and targets set at the start of the coal-exportation scheme. The comparison shows the extent to which the exploitation of the coal reserves is being negatively influenced by the current market situation. Recommendations are made regarding planning for the coal-export market, and the aspects that have to be taken into account to keep South Africa in the export market are identified. Reference is made to the fact that the present unrestrained wage and salary adjustments, which show a total disregard of South Africa's poor productivity record, require serious thought and speedy rectification if the country is to survive in the export market. A salary and wage strategy must be developed to suit the specific needs of the Republic of South Africa.

Jan 1, 1987

By F. Rwere, A. Masasire, P. Dzomba, M. Mupa

Accurate determination of platinum group metals (PGMs) and gold (Au) has always proven to be a difficult task, due to their low concentrations in platiniferous ores. The most common preconcentration technique used in analysis of these metals is fire assay with a flux containing nickel or lead. This technique can be improved by using co-collectors. Here we hypothesise that Fe, Co, and Cu can be used as co-collectors to enhance separation and preconcentration of PMGs and gold by fire assay. To test this hypothesis, geological exploration samples from Siyanda Union Mine (Northam, South Africa) were analysed by an inductively coupled plasma-optical emission spectrometer (ICP-OES) for PGMs (Pt, Pd, and Rh) and Au. A control sample (certified reference material AMIS 0426) was also analysed by the same technique. The PGM and Au recoveries from the control sample ranged from 83% to 105% for all three co-collectors, with relative standard deviations less than 10% for the control sample and 7% for the geological samples. The PGM and Au recoveries by Fe and Co co-collectors were modestly higher than that of the Cu-collector. These results indicate that Fe and Co are better co-collectors than Cu, presumably due to the loss of analyte when using Cu. Taken together, Fe and Co co-collectors can be viable alternatives for analysis of PGMs and gold using the fire assay method.

Jan 2, 2022

By J. Sikamo, A. Mwanza, C. Mweemba

"The Zambian copper mining industry as we know it today had its genesis in the 1920s. Consistent private sector-driven investment in the industry over a period of over 50 years in exploration, mine development and operation, development of minerals processing facilities, building of infrastructure for pyrometallurgical and hydrometallurgical processing, with attendant support facilities, including building of whole new towns, resulted in copper production rising to a peak of 769 000 t in 1969, providingover 62 000 direct jobs. The industry was nationalized in 1973 and remained in government hands for just over 24 years. During this period, the industry experienced a serious decline in production levels, reaching the lowest level in the year 2000 when production was 250 000 t. An average of just under 2000 jobs were lost every year in the 24-year period, reaching just over 22 000 direct jobs in 2000.Following the return of Zambian politics to pluralism and liberalized economic policies, the government decided to privatize the mining industry. The process started in 1996 and by the year 2000 all the mining assets had been privatized. The new investors embarked on serious investment to upgrade the assets and to develop greenfield mining projects. Fourteen years later and after more than US$12 billion investment, production levels increased year-on-year to a peak of 763 000 t in 2013 with direct jobs reaching 90 000.This paper discusses the impact of the mining industry in Zambia on the economy in areas such as employment, support for other industries, direct contribution to the national gross domestic product (GDP), foreign exchange earnings, and social amenities. The paper also focuses on the performance of the mines during these periods vis-à-vis mineral availability, mineral grades and complexity, new technologies, and human capital. This is looked at particularly in the light of current challenges the industry is facing. Suggestions are proposed on how the industry can be nurtured to continue being a major driver for the Zambian economy and a major player in the international copper mining business."

Jan 1, 2016

By B. Simser

Rockbursting around underground excavations continues to be a core risk for many deep mining operations. Numerous advancements in mine design, preconditioning, monitoring, mining equipment, exclusion zones, and ground support have significantly lowered the risk to mine workers. As mining continues in deeper, more challenging environments, a multitiered approach to rockburst risk mitigation, starting with mine design, is required. Both the overall mine sequence, for example, avoiding converging mining fronts, and local design “stick handling” can play an important role in risk reduction. Rockburst case studies dating back to the late 1990s up until 2024 are used to highlight risk factors and risk mitigation (tactical and strategic). Examples from several deep hard rock mines are used, generally in high horizontal stress fields (k ratios 1.5 to 2), and strong brittle rock (> 200 MPa unconfined compressive strength). Mining induced stresses as well as high in situ stress due to depth are discussed. The context is Canadian mining, which typically has highly mechanised operations, large openings and equipment. Examples from a narrow vein mine and shaft sinking are also given because neither environment is simple to mechanise, highlighting the need for other risk mitigations. A “sieve” analysis based on mine incident reports is used to show how a multi-tiered risk management plan can lower exposure to violent ground failures. A few incidents still make their way through the “sieve,” indicating a need for further improvements. Thoughts on future/ current developments, and their strategic importance are given. Ground support is the last line of defence. The proliferation of multiple styles of yielding tendons and support systems has made many choices available to rock engineering professionals. Despite the increased availability of dynamic ground support components, there are still difficulties getting clean load transfer to bolts, determining support demand, monitoring loss of capacity over time/mining, and evaluating true system capacity. Virgin development in deep high stress brittle rock can result in high strainburst exposure prior to any stoping operations. The mining process must reduce worker exposure to unsupported rockmasses. Successful preconditioning in a shaft sinking operation, the use of high early strength shotcrete, and mechanised equipment are also discussed.

Nov 24, 2025

By M. Salimov, J. Sattarvand

The conventional visualisation method of remote equipment is through the installation of one or more cameras on the machine, and sending a live feed to the operator’s flat display. However, the performance of the teleoperation can be enhanced using better visualisation through virtual reality (VR). This paper presents the process of the design and manufacturing of a robotic platform that will be used in the next phase of the project for a VR-assisted teleoperated excavator. The robot consists of a loading boom and arm arrangement installed on the undercarriage of a CAT300-9D. All hydraulic cylinders are replaced with electric actuators, and crawling motors are substituted by electric motors. The pieces of the boom and the arm, as well as the bucket were designed in Autodesk Inventor, and manufactured from aluminium sheets using a desktop and CNC machine. Parts are joined by pins and welding as needed. An Arduino-based control system is developed for the robot, and motor controllers are used to convert the power commands from the microcontroller to the high-amperage actuators. The control system is capable of communicating with a wireless Play Station controller to operate remotely. The manufactured robotic excavator is planned to be utilised in multiple autonomy research projects.

Sep 1, 2021

By R. Drummond

The fourth Teetered Bed Separator (TBS) has just been installed in Australia, and trials have been run in many sites. There is a growing recognition of the potential advantages of using TBS technology to treat coal in the ?3+0.25 mm size range, at cut points below 1.60. From these activities, there has been a substantial growth in knowledge with respect to application engineering and operational functions. The paper briefly describes the installations, including flowsheets, and so provides a background to the potential deployment of TBS technology. There are a large number of potential applications for TBS technology, including treatment of fine ROM coal in new plants, or in upgrade situations for re-processing of spiral product, or scavenging coal from coarse tailings. As well, cost effective capacity upgrades are possible by using TBS units for treating the sands size fraction. Issues arising from Australian TBS installations and application engineering are also discussed.

Jan 1, 2002

By Jo Katembo, Patty Bwando, Patient K. Ilunga, Yves Kalubi, Emman Mulaj

"From 2010, the dolomite concentration in the ore fed to the Usoke Plant increased, resulting in a significant increase in the gangue acid consumption and Mg build-up in the circuit, and thus an increase in the Mg:Co ratio in the plant solutions. This affected the Co salt grade, reagent consumption, filtration and drying capacity. Efforts were put in place to minimise the acid consumption and consequently the Mg dissolution (such as use of pre-diluted acid), but the benefits were negligible. Various efforts were then initiated by CHEMAF to improve the cobalt plant productivity (quantity and quality) by process changes, dual precipitation and seed recycle. The positive results obtained in the laboratory were successfully implemented on plant scale. A change in the process from a single-stage precipitation with Na2CO3 to dual precipitation using a combination of Na2CO3 and NaOH improved the capacity of the Co salt filtration by 30%, the Co salt grade and drying capacity by 50%, and reduced the reagent consumption by 22%. Implementation of precipitate seed recycle increased Mg rejection by 40%, improving the Co salt grade from 20% to 25%, and yielding a further drop in reagent consumption. INTRODUCTION CHEMAF (Chemicals of Africa), a mining company located in Katanga province of Democratic Republic of Congo (DRC), has been operating since 2003. The Usoke hydrometallurgical plant treats the Cu-Co ore from the Etoile pit to produce Cu cathodes via a leach–solvent-extraction (SX)–electrowinning (EW) circuit and Co salt via a selective precipitation process. The plant was designed to treat run-of-mine (ROM) ore grading 6% Cu and 1.5% Co; but, in 2008, due to a decline in grades, a heavy-media separation (HMS) plant was commissioned to enrich the low-grade ROM (3.5% Cu and 0.5% Co) up to 8% Cu and 1% Co before feeding it to the hydrometallurgical plant. Co is recovered by precipitation of Fe and Al with limestone, followed by Co precipitation as Co carbonate using sodium carbonate (Na2CO3), also known as soda ash. 85% of the final effluent from cobalt precipitation is recycled back to the plant as process water; the balance, 15%, is bled out and compensated for by fresh water top up to control and retard the rate of sodium sulfate build up."

Jan 1, 2015

By R. A. Plumbridge

The Honourable Mr Molefe, Premier of the North- West Province; Or Scot-Russel, Chairman of the CMMI's XV Congress; Mr Loton, Chairman of the CMMI; distinguished guests, ladies and gentlemen. At the outset may I express my sincere appreciation to the organisers of this Congress for their kind invitation to me to participate in the plenary session. May I also thank the CMMI for inviting me to be their fifth distinguished lecturer. This is a signal honour and one which is sincerely appreciated by my Group and myself. The subject of gold is a very emotive one. It conjures up different images in the minds of a wide variety of people. For many of us it is very simply the ultimate metal. In ancient times gold was sought after and treasured; it was the chosen metal for adornment and many of the best preserved artefacts of that time were hand-fashioned from gold which had been won by primitive mining techniques. Gold's rarity and its value was recognised by those who fashioned the earliest gold coins thus underlining gold's special place as a store of value.

Jan 1, 1994

By B. Elevli

This paper deals with the selection of alternative accesses to a podiform chromite orebody in Turkey. The most important alternatives studied in a related project have been stated as a new vertical shaft and a ramp system. The comparison of these alternatives have been carried out on the basis of total investment costs, ore transport unit cost and net present value (NPV) of overall project for various depth. The results show that up to the depth of 700 m, the total investment cost and NPV favours the ramp access while unit ore transport cost make the shaft access preferable.

Jan 1, 2002

By D. Chetty

Process mineralogy forms an integral part of geometallurgy, with ore body characterisation being but one piece of the puzzle in optimising value derived from ore. This value is not only financial, but importantly speaks to sustainability from environmental and social standpoints. The reactive approach of traditional process mineralogy is increasingly being replaced by predictive methods in the geometallurgical sphere, for which mineralogical information must be timeously acquired on judiciously selected sample sets to understand ore variability and its impact on orebody processing. Such processes are not only metallurgical, but must incorporate mining and waste management protocols. Dwindling resources like water and energy also demand innovative approaches for lowering consumption and/or promoting recycling along the value chain. Addressing such challenges relies on appropriate characterisation of ore behaviour under different process regimes. Coupled with this, emerging characterisation tools are increasingly applied to understand the mineralogy of unconventionallypresented and difficult-to-process ores to meet societal and technology demands. Such tools are often accompanied by the generation of large, computationally intensive datasets, for which data management and storage are key requirements, particularly when deciphering temporal trends in ore and process variability. This paper will elaborate on these themes with examples that highlight the importance of process mineralogy throughout the minerals value chain. Keywords: Process mineralogy, ore characterisation, geometallurgy

Jan 1, 2020

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