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For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analysts' inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted `floor' value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

By F. Hees, A. H. Bracken, L. I. Boshoff

"Biological cementation of the Mandena heavy mineral sand deposit in Madagascar was causing difficulty in dredge mining and hence in planning and control of production rates. An investigation was initiated to better evaluate the geotechnical properties of the orebody by defining the distribution and geotechnical properties of the cemented strata, in order to generate a site-specific geotechnical model for the deposit. The geotechnical characterization was developed by an integrated approach using several ground investigation techniques such as piezocone (CPTu) testing, geotechnical drilling, standard penetration testing (SPT), as well as laboratory testing. The final outcomes of the investigation included a 3D geotechnical model showing the distribution and extent of the cemented areas, as well as the typical geotechnical parameter ranges associated with each of the defined geotechnical units. The interpretations developed were incorporated into the mine and production planning to ultimately optimize operational planning and control.IntroductionQIT Madagascar Minerals (QMM) is a heavy mineral sand mining operation at Mandena, near Fort Dauphin in Madagascar. During the final planning and commissioning stages of the project, the need to fully characterize the unusual geotechnical conditions was identified and a geotechnical investigation became necessary.Nature of the problemDuring the commissioning phase it was found that mining production was being hampered by biologically cemented/indurated layers encountered within the sands. Closer inspection of the indurated horizons in the dredging face revealed that these layers contain a high loading of bacteria and fungi. It appears that the bacteria produce an extracellular (outside the cell) polysaccharide (i.e. sugar and carbon salts), which form a gelling biofilm to trap nutrients. There are a number of different bacteria. The fungi, on the other hand, produce a network of fibrous strands that bind the sand grains together. Thus both bacteria and fungi probably contribute to the ‘apparent cohesive’ strength or binding of the indurated sand (Lynn, 2008)."

Jan 1, 2017

NOTICE The Institute has received requests for copies of Uranium in South Africa', Vols. 1 and 2, but is unable to supply, as all copies have been sold out. If any members have copies they wish to dispose of it would be appreciated if they would contact the Secretary, P.O. Box 1183, Johannesburg. Telephone 834-1271.

By W. J. Whiten

Models of cone crushers and vibrating screens are described. These models have been constructed from actual plant data using a systematic model-building technique. Included in this technique is regression analysis using multi-dimensional spline functions. The models have been used too simulate complete crushing plants and hence to design and evaluate a control system for crushing plants.

By L. Capponi

At Tapira Mine (Tapira/MG/ Brazil), the largest phosphate concentrate producer in Brazil, the mining is fully mechanized and carried out using open pit mining. This work presents a review of the sampling protocol used for short term mine planning at different stages. Sampling is carried out in two steps. Firstly, diamond drill cores are sampled at 50 x50 x5 metre pattern. Fosfertil analyses grades of P2O5, Fe2O3, CaO, MgO, SiO2 and TiO2 plus geological logging. This information feeds the long term block model. Secondly, drill cuttings are collected at the mining faces released for blasting. The drilling pattern is staggered and when blasting is not necessary, a drill hole is made centered in the block area (25 x 25 x 5 m). The primary samples have mass approximately 60 kg and the same chemical parameters are analysed. Metallurgical and mass recovery tests are performed as well. These samples are used to build the short term block model. At the final stage, the short term mine planning model is used to build a stockpile blending model which is simulated using a spreadsheet to match the goals established by the process plant.

Jan 1, 2009

By R. F. Botha

I want to thank you for inviting me to deliver this, the closing address at the final plenary session of the 15th Congress of the Council of Mining and Metalurgical Institutions. Your Council has an impressive title, and justly so. Consider the expertise, the skill, the capacity, the achievement, that is gathered together here in this room this afternoon.

Jan 1, 1994

By A. Hinde, M. Moys, L. C. Woollacott

The material-balance smoothing technique is applied directly to the problems associated with the evaluation of the performance of backfill-preparation plants. A computer package specially designed to assist the process engineer in such evaluations has been developed. The usefulness of the technique as compared with other methods for the extraction of meaningful information from backfill-plant data is demonstrated.

Jan 1, 1992

By M. Akyüzlü

The equilibrium between carbon-saturated Fe-Cr-Si-C alloys and SiO2-CaO-MgO-A2O3-CrO2-FeOy slags was studied under atmospheres of argon and carbon monoxide at temperatures of 1500 and 1600°C. The equilibrium distribution of chromium, silicon, and iron between the slag and the metal phases was determined for different compositions of both phases under different atmospheres and temperatures. It is shown that silicon transfer from the slag to the metal increases with increasing temperature, decreasing carbon monoxide partial pressure, decreasing carbon content of the metal, increasing chromium-to-iron ratio of the metal, increasing silica content of the slag, and decreasing lime-to-alumina ratio of the slag. Some activity calculations were made for the experiments conducted at 1600OC in a carbon monoxide atmosphere. It is also shown that a decrease in the iron content and an increase in the slag basicity decrease the chromium content of the slag. A major proportion of the chromium present in the slag was found to be in the divalent state under the highly reducing conditions prevailing in the experiments. The chromous capacities of these slags were calculated and were found to decrease with increasing basicity.

Jan 1, 1992

The development of short- and medium-term mine production schedules in isolation from each other has meant that only a local optimum can be achieved when each scheduling phase is carried out. The globally optimal solution, however, can be achieved when integrating scheduling phases and accounting for the interaction between short-term and medium-term activities simultaneously. This paper addresses the task of integrating short- and medium-term production plans by combining the short-term objective of minimizing deviation from targeted mill feed grade with the medium-term objective of maximizing net present value (NPV) into a single mathematical optimization model. A conceptual sublevel stoping operation comprising 30 stopes is used for trialling segregated and integrated scheduling approaches. Segregated medium- and short-term scheduling using separate models achieved an NPV of $42 654 456. The final scheduling approach involved integrating the two scheduling horizons using the newly-developed globally optimal integrated production scheduling model to achieve an NPV of $42 823 657 with smoother mill feed grade. The larger the stope data set, the larger the difference between the two scheduling approaches is likely to be. At the very least, an integrated approach ensures feasibility across the two scheduling horizons, which cannot always be assumed when using a segregated approach.

Jan 1, 2012

If the Journal is to fulfill its mandate to the mining and metallurgical industry, it needs to expand its readership and, by implication, membership of The South African Institute of Mining and Metallurgy. This we hope to do by increasing the appeal of the Journal to a wider audience through the inclusion, in addition to our high-quality research papers, of equally high-quality papers, articles, and contributions that will be of interest to our less research-minded members.

Jan 1, 1990

This overview serves as an introduction to the succeeding paper in this issue, that entitled 'The design of backfill as a support for Polish coal mines' by Professor J. Palarski. As such, it briefly describes the coal-mining methods, production, and mining education in Poland. It ends with a brief account of Professor Palarski's qualifications and experience in the fields of backfilling and hydro transport.

Jan 1, 1994

By J. B. Parry

Three types of high-strength cold-rolled steels are discussed. Two are currently being developed at Iscor: rephos phorized steel and niobium microalloyed steel. Heat treatment after cold rolling is carried out in batch annealing furnaces. A third type, dual-phase steel, which requires a continuous annealing treatment for economic production, is also described. The properties, strengthening mechanisms, and applications of these three steels are examined.

Jan 1, 1983

By T. V. Thoms, T. R. Twidle, J. W. Crous

This note describes an investigation into the most cost-effective material for mil-shell liners in large-diameter pebble mils with lifter bars. This is part of a project being conducted at the gold plant of East Driefontein near Carletonvile in the Transvaal. It was found that manganese-steel and chromium-steel liners are more cost-effective than liners of cast mild steel or white iron.

Jan 1, 1990

By A. C. Wingrove

The paper outlines the selection of a dewatered tailings backfill system for the Johannesburg Consolidated Investment Gold Division, and covers the following aspects: (i) 16 Shaft pilot testwork; (ii) engineering design problems relating to the Cooke 3 Shaft backfill operation; (iii) in-line mixing - applications with respect to the Randfontein Estates Gold Mine and Western Areas Gold Mine backfill operations; and (iv) pipeline friction losses.

Jan 1, 1988

By M. C. van Blerck

This paper examines the South African fiscal system as it applies to the mining industry and, where components are found wanting, discusses possible alternatives. It is concluded that the South African system has long provided a stable environment for mining investment and growth. However, the introduction, of steep surcharges during the past decade or so (since abolished) and ring fencing (since relaxed but not abolished) has started undermining this stability.

Jan 1, 1994

By S. J. C. L. Peeters

Geographical information systems (GISs) provide sophisticated functionalities t1tat can be used by the personnel in many aspects of the mining industry to visualize, analyse, and manipulate spatial and tabular data. This paper presents an experimental case study for Hartebeestfontein Gold Mine. It shows how data from different computer systems can be brought together into a GIS by use of the Arc/Info and ArcView programs.

Jan 1, 1996

By C. Ringas, F. P. A. Robinson

Various theories proposed to account for microbial corrosion are reviewed as a background to a better understanding of this type of corrosion in iron-based alloys. Experimental evidence is presented to show that even stainless-steel alloys are prone to microbial attack by sulphate-reducing bacteria. The corrosive attack by the bacteria is due primarily to the hydrogen sulphide that is produced as part of their metabolic processes.

Jan 1, 1987

By C. Van Rhee

In dredging practice sand is eroded at very high flow velocities using water jets. The existing pick-up functions overestimate erosion. By taking the permeability into account conventional pick-up functions can be made suitable for high velocity erosion. This can be achieved by modifying the critical Shields parameter. The procedure is demonstrated using the pick-up function of Van Rijn. The theory is compared with experiments and agreement is good.

Jan 1, 2007

By H. Scott-Russell

Much of the technology and methodology extensively employed in current mining operations is in the mature phase of its lifecycle and, consequently, subject to the principle of diminishing returns. It is probable that future gains in productivity and safety of the magnitude essential for the sustained economic viability of the industry will be derived only from a determined technological development programme. The history of trackless mechanized mining, which represented a radical change in methodology in deep-level gold mines, is reviewed. The benefits and obstacles to the realization of the full potential are highlighted. Similarly, an overview is given of alternative mechanization developments in South Africa. In addition to the development and application of advanced technology, an envelope of operating parameters relevant to each methodology must be engineered to facilitate the site-specific selection of the most appropriate. Furthermore, a mechanism for the evaluation of cost effectiveness is essential to the decision-making process. The narrow, tabular orebodies of relatively low dip that are encountered in the South African hard-rock mining industry make the design and manufacture of a comprehensive range of stoping equipment extremely difficult. The machinery that has been available to date has demonstrated only limited site-specific success. The development of suitable machinery must necessarily be initiated and driven by the South African mining industry in collaboration with the major equipment manufacturers in the world.

Jan 1, 1993

By F. van Heerden

The paper sketches the. management of the various phases in a cost-reimbursable, plus-fee contract. which is claimed to be the most flexible of all contracts. In this type of contract, the contractor is reimbursed for all the direct costs Incurred, plus a percentage fee to cover his profit (or overheads and profit). The client usually reserves the right to approve all drawings, equipment purchases. contract awards, technical specifications. project cheques and change orders.

Jan 1, 1982