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By C. C. Birch

Due to grade estimation uncertainty, two statistical errors can occur. The Type I error is where material is classified as ore and mined, despite the true value being below the break-even grade. This material is dilution. The Type II error is where the material is estimated to be below the cut-off grade and is classified as waste, although the true grade is actually above the break-even grade. This material is not mined and is lost. The uncertainty was assumed to follow a normal distribution in a previous study. For this study, estimated block values are compared to those determined after mining (the best estimate of the true grade). This actual data from four mines shows that the uncertainty follows a Laplace. There is no single solution regarding adjusting the cut-off grade away from the break-even grade, considering estimation uncertainty, that could be applied to all gold mines. However, adjusting the cut-off grade downwards (up to 22% for one mine) is noted when optimizing the profit considering grade uncertainties. This type of adjustment could open up significant mining areas and extend the life of the mine.

Jul 2, 2022

By K. Kabezya

A study on slag dispersion in a model of bottom-blown bath smelting converter was undertaken at room temperature. The aim was to investigate the behaviour of the dispersed slag phase at various operating conditions with very high gas flow rates in low slag volume (10%) systems. For simulation purposes water, paraffin-oil, and air were used to represent the bulk steel, molten slag, and gases respectively in a one-fifth cold model of the commercial 100 t Creusot-Loire-Uddeholm (CLU) converter used in the manufacture of stainless steel in South Africa. Dimensional analysis was done to correlate mathematically the dispersed phase holdup with the operating conditions and the modified Froude number. The overall expression of the holdup revealed that the dispersed slag phase decreased with the vertical distance from the original interface between the liquid phases. The dispersed phase also decreased with the radial distance in the water plume zone toward the sidewall. The holdup was apparently much higher on the side of the reactor where there were no tuyeres. The modified Froude number ensured the correlation between the model and the prototype.

Jan 1, 2014

Most processing plants use automatic samplers to extract ore aliquots along a producing shift. These aliquots are combined into a sample normally sent to lab analysis. The sampler used in the extraction of an aliquot from a continuous flow of ore, i.e. a belt conveyor is required to be both precise and accurate. Surprisingly, not all commercial automatic samplers exhibit these two mandatory properties. Consequently, it is recommended the development of a procedure able to check sample assays reproducibility obtained using a given sampling protocol. This paper uses the Gy’s sampling theory to evaluate coal quality control practices at a washing plant using an automatic sampler extracting coal increments from the ROM feeding belt conveyor. Gy’s theory provides the means to establish the precision limits for a given sampling protocol. Various ore properties are required to be determined in combination with sample mass and mass of the lot sampled. All this information leads to the definition of the precision limit. The precision limit obtained was checked via an experiment mimicking what happens in situations where both miner and consumer use the same and appropriate sampling practices. The experiment demonstrates that sampling theory precision limits were valid if unbiased samplers are used by both parties, i.e. miner and consumer. Keywords: sampling, quality control, coal

Jan 1, 2003

By F. T. Cawood

Inauguration of the new political dispensation in South Africa in 1994 initiated a dynamic shift in the ownership, management and development of the country’s affluent mineral heritage. The process of substituting the old South African regime with a new equitable system, started soon after the 1994 election of the African National Congress (ANC) to parliament. The Congress’ Freedom Charter revealed the intent of the new dispensation when it called for radical transformation of mineral development. However, since 1955 there have been important changes affecting the rules of mineral development. These are: •Firstly, a drastic change in politics ushered in by negotiation, a spirit of reconciliation and a desire to settle disputes peacefully •Secondly, the globalization of the South African mining industry in tandem with the opening of domestic mineral resources to foreign capitalists; and •Thirdly, the introduction of sustainable development as a holistic approach to mineral development in order to replace traditional narrow-minded environmental management. Each of these significantly shaped the new mineral investment environment of South Africa. This paper represents a summary of the historical developments leading to the current Mineral and Petroleum Resources Development Act No. 28 of 2002, its Regulations, the much-publicised Broad-Based Socio-Economic Empowerment Charter and its associated Scorecard.

Jan 1, 2003

By X. M. Prévost

The reassessment of coal reserves has become a matter of urgency and has come as a result of the present situation of the industry, in the context of globalized coal economies, as well as new mining legislation and the advantages and difficulties of domestic coal suppliers. The de Jager report concerning coal reserves, released twenty years ago, can no longer be used as an estimate for accurately forecasting South Africa’s future coal production. The new reserve and resource study will promote the diversification of energy sources and provide a clearer view of the future of coal mining in the country. With plans to increase South Africa’s coal export capacity to approximately 84 million tons by 2005, it is uncertain whether the country really has sufficient reserves to meet this expansion, as well as satisfy the projected increase in inland demand. The face of South Africa’s coal industry and by association, the economy of our coal-dependent country, are both set to change. This is mainly due to factors such as the demise of most of the large collieries over the last approximately twenty years, growing numbers of economic empowerment producers, the emergence of strong competition in the export market, the dawn of Clean Coal Technologies (CCTs) and the Kyoto Protocol The paper will attempt to dispel some of the current myths about coalfields and reserves and highlight potential areas of high quality coal reserves, available mainly to new entrants in the industry. Keywords: Central Basin, Clean coal technologies, Coal combustion, Coal exports, Coalfields, coalLink, Coal reserves, Coal resources, Coal processing, Colliery, Economic empowerment, Discards, Fluidized bed combustion, Low-ash coal, Metallurgical coal, Power generation, Pulverized fuel, Reserve blocks, Richards Bay Coal Terminal, Run-of-mine production, Saleable production, SAMREC Code, South Dunes Coal Terminal, Steam coal, Synthetic fuels.

Jan 1, 2003

By Y. Y. Jiao, J. G. Cai

To investigate the dimensional effect on shock wave propagation in jointed rock masses, a 2-D and a 3-D calculation of a site test are performed respectively by using Discrete Element Method, the simulated results are compared with test data. It shows that, in modelling shock wave propagation and attenuation in jointed rock masses, when the explosive along explosion chamber is long enough and the joints are dense enough or uniformly distributed, the model can be considered as plane-strain problem, 2-D results are good enough to fit with test data. 2-D modelling, with much more details of rock masses taken into account, can be applied to make critical engineering judgements instead of 3-D modelling in some cases.

Jan 1, 2003

Council Members 1988/1989, left to right: Row 1 (seated): H.E. James, P.W.J. van Rensburg, Dr H. Wagner, B.C. Alberts, C.E. Flvaz (President), H.G. Mosenthal, R.D. Beck, Professor A.N. Brown, Dr P.R. Jochens Row 2 (standing): P.C. van Aswegen, J.P. Hoftman, D. Wllson, P.M.T. White, K.A. van Gessel, Dr LA. Cramer, J.S. Freer, V.J. Moore, G.A. Brown, R.A. Snodgrass, J.D. Austin Row 3 (standing): Dr G.A. Fourle, Dr J. Lurle, A.M.P. Henderson, R.P. Mohring, J.A. Cruise, J.L. Nel, H. Scott Russell, J.P. Deetlefs, D.A.J. Ross-Watt Inserts, top row: K.R. Beard, N.J. De~ine, R.J. Dlppenaar, G.T.G. Emere, Dr J-P. Franzidls, Professor R.P. King, J.G. McCallum. Bottom row: G.Y. Nisblt, Professor R.P. Plewman, Dr R.E. Roblnson, Dr O.K.H. Steften, P.A. van Wlelllgh

Jan 1, 1989

Report M294 A mineralogical investigation of potential gold-sorbing minerals and shales, by c.T. Logan. Dec. 1986. 12 pp. Computer software The Fifth IFAC/IFIP Symposium on Software for Computer Control (SOCOCO 88) is to be held in J ohannesburg from 26th to 28th April, 1988. Tunneling 88 The Institution of Mining and Metalurgy, with the cooperation of the British Tunneling Society, the Institution of Mining Engineers, and the Transport and Road Research Laboratory, Department of Transport, is pleased to announce the fifth international symposium, Tunneling 88, which wil be held in London, England, from 18th to 21st April, 1988. Ion-exchange processes ION-EX '87, an international conference and industrial exhibition on the industrial, analytical, and preparative applications of ion chromatography and ionexchange processes, wil be held in Wrexham (North Wales) from 13th to 16th April, 1987.

Jan 1, 1987

By J. H. E. Perry, V. H. Wiik

"The ore deposits of the Zambian Copperbelt occur in sedimentary strata that have been subjected to relatively mild, flexure-type folding. Unrolling serves to reconstruct the original depositional geometry of the folded sedimentary strata and is in common usage on the Copperbelt both for geological analysis of drill hole data and in routine ore reserve estimation.A computerized method of unrolling was introduced at Roan Consolidated Mines in 1969 based on a standard contouring program. A contour map of the geological structure is drawn from a regular grid of elevations, interpolated from the original, irregularly-spaced intersections. Unrolling is performed across this grid, perpendicular to one or two axes specified by the geologist. Each intersection is unrolled independently, and the new co-ordinates are subsequently processed to produce unrolled maps.The technique has been used successfully at RCM over the last two years in both the estimation of ore reserves and exploration planning."

Jan 1, 2014

By M. Hermanus, N. Coulson, N. Pillay

"SynopsisThis paper assesses the effectiveness of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH) and its potential to improve mine health and safety in South African mines. Developed by the Chamber of Mines, which represents the majority of the country's large scale mining employers, MOSH was devised to accelerate progress towards achieving health and safety milestones, which were set by tripartite agreement in 2003. The paper documents and builds on the findings of a study conducted by the Centre for Sustainability in Mining and Industry (CSMI) in 2011 that evaluated MOSH strategy, structures, and process of implementation.The study found that MOSH operated across the mining sector, was directed and dominated by experts and, despite best efforts to include other stakeholders, was led by employers. Statutory worker health and safety representatives and structures were not integrated into the complex change process developed by MOSH. The Mine Health and Safety Inspectorate (MHSI) and organized labour were ambivalent about direct involvement in MOSH and preferred regulatory measures to enforce the participation of mines. MOSH interventions were not targeted at mines with a poor health and safety record, and MOSH lacked a baseline from which to track impacts on sector-wide health and safety performance. The leading practices most widely adopted by mines were designed to improve, rather than fundamentally alter, existing practice. Although the depth of engagement with MOSH among stakeholders and on mine sites varied, mining companies, labour representatives, and the Mine Health and Safety Inspectorate (MHSI) saw the programme as significant.IntroductionIn 2011, the Chamber of Mines commissioned the Centre for Sustainability in Mining and Industry (CSMI) to evaluate the progress and effectiveness of the rollout of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH). CSMI, based in the School of Mining Engineering at the University of the Witwatersrand, is an independent research centre conducting health and safety research relevant to all major stakeholders in the mining sector. The purpose of the evaluation was to identify the factors that enabled or hampered the adoption of new technologies or practices. The timing of the evaluation, two years before the deadline for the 2013 safety and health milestones, allowed time for adjustments to be made. This paper summarizes the results of the evaluation and includes further analysis and discussion of the nature of the programme and the conditions that act to advance it or it hold back."

Jan 1, 2015

By B. Dias, P. C. Schutte

Work-related musculoskeletal disorders (WMSDs) affect the wellbeing of workers and result in poor quality work, lower work performance and decreased motivation. In contrast to ‘occupational’ diseases where there is a direct cause-and-effect relationship between hazard and disease (e.g., asbestos and asbestosis, lead and lead poisoning), ‘work-related’ diseases are multifactorial, where the work environment and the type of work that is performed contribute significantly to musculoskeletal disorders. WMSD is the term used to describe disorders and diseases of the musculoskeletal system (i.e. muscles, joints, ligaments, tendons and nerves). WMSDs are by definition a work-related phenomenon. The literature shows inarguably that certain jobs and certain work-related factors are associated with a significant risk of contracting a WMSD. It is assumed that repeated movements and postures, static work, continuous loading of the tissue structures or lack of recovery time, trigger or cause a pathological process that then manifests itself as a WMSD. This paper looks at the prevalence of the WMSD condition at three mines in South Africa: a coal, a gold and a platinum mine. Predisposing factors that include work factors, presentation of symptoms and psychological factors will be discussed in the paper.

Jan 1, 2003

By J. Cilliers, R. Seitz, D. Drinkwater

Mineral processing produces a saleable product from high-cost ore. The Mineral Processing Engineer must constantly improve the separation to create the most value from the ore and reduce the associated costs. Graduate Metallurgists (or Chemical Engineers) have had the university theoretical training required, but often are illprepared to perform their plant roles. The in-work Metcelerate programme was designed specifically to develop the practical skills that Mineral Process Engineers require, by combining three key elements: 1. Knowledge transfer through self-paced, on-line training; 2. Practical skills acquisition through assessed, practical plant exercises; 3. Skills development through online tutorials. A final process improvement project adds significant value to the operation that far exceeds the training cost. Experience from Metcelerate clients has indicated improved staff retention, greater confidence, and pro-active process intervention.

Jan 1, 2023

By B. Aydin, A. S. Aloglu, S. Kahraman, E. Saygin

"The coal strength parameter is used in operations such as the selection and design of mechanical excavators and coal crushing/grinding equipment. However, coring or cutting prismatic specimens from coal for the standard strength tests is difficult, and sometimes not possible. For this reason a method for the indirect determination of coal strength from easy tests would be useful. In this study, the predictability of coal strength from the needle penetration test was investigated. This is a very easy and practical test method. Point load and needle penetration index (NPI) tests were carried out on coal specimens from Çayirhan coalfield in Turkey. The point load indexes were converted to the uniaxial compressive strength (UCS) values by using the general conversion factor. The UCS and NPI values were evaluated using regression analysis. A strong linear relationship was found between the two parameters. The conversion factor for the UCS-NPI ratio is 0.35 for the tested coal samples. It is concluded that the UCS of coal can be predicted from the NPI.IntroductionKnowledge of coal strength is important for the selection and design of mechanical excavators and coal crushing and grinding equipment. Uniaxial compressive strength of coal is used in designing pillar dimensions in room and pillar mining. Coals always contain bedding planes and cleats; they are also brittle and fragile. Therefore, coring or cutting prismatic specimens from coal for the standard strength tests is difficult, and sometimes not possible. For this reason, a method for the estimation of coal strength from easy tests would be useful.The needle penetration test is a nondestructive index test that is applicable both in the field and the laboratory and does not require any special sample preparation. The test has been used for the estimation of physical and mechanical properties of weak or soft rocks (Okada et al., 1985; Yamaguchi et al., 1997; Takahashi, Noto, and Yokokawa, 1988; Uchida et al., 2004; Aydan et al., 2006; Aydan, Watanabe, and Tokashiki, 2008; Aydan, 2012; Erguler and Ulusay, 2007; Park, Obara, and Kan, 2011; Ulusay and Erguler, 2012; Aydan and Ulusay, 2013; Aydan. Sato, and Yagi, 2014). This study investigates the predictability of coal strength from the needle penetration test."

Jan 1, 2017

1. Book reviews Geostatistics for natural resources characterization, edited by G. Verly, M. David, A.G. Journel, and A. Marechal. Hingham (MA 02043, U.S.A.), D. Reidel Publishing Co., 1984. Pt I: 606 pp. Pt 11: 518 pp. U.S.$135,50 per set. Reviewer: D.G. Krige Magnesium, the international perspective, by Peter King. London, Financial Times Business Information Ltd, 1984. £120. 147 pp. Reviewer: D.G. Maxwell 2. Mintek reports Report M156 A kinetic study of the reactions of certain gaseous sulphur compounds with iron. Report MI57 Reaction mechanisms in the reduction of Winterveld chrome spinel with graphite and carbon. Report MI72 Computer programmes for the control and datamanipulation of a sequential X-rayfluorescence spectrometer. Report MI77 A proposed test for the determination of the grindabi/ity of fine materials. Report MI86 A survey of the erosion, corrosion, and abrasion of material-handling systems in the mining and mineralprocessing industry. 3. New journal Advanced materials & processes, issued monthly by American Society for Metals (Metals Park, Ohio 44073, U.S.A.). CIM conference The combined 24th Annual Conference of Metallurgists and the 15th Annual Hydrometallurgical Meeting will be held in Vancouver from 18th to 22nd August, 1985. Light metals The 8th International Light Metals Congress will take place from the 22nd to 26th June, 1987. These meetings, which take place traditionally every few years, are organized by the Austrian Metals Industry Association, the Austrian aluminium industry, and the University for Mining and Metallurgy in Leoben, in collaboration with the Aluminium-Zentrale Diisseldorf. President of AS&TS* Mr Arthur Woodington Reynolds (Sam) took office as President of The Associated Scientific and Technical Societies of South Africa on 28th November, 1984. Sam Reynolds was born in Boksburg on 27th December, 1930, and received his education at Christian Brothers College in Boksburg and at St John's College in Johannesburg. World mining Sweden, Finland, and Norway expect representatives of all mining countries in May-June 1987 to the 13th World Mining Congress in Stockholm. The Swedish Mining Association, the Finnish Association of Mining and Metallurgical Engineers, and The Association of Norwegian Mines will organize the Congress, together with the International Organizing Committee of the World Mining Congress. Sheet metal The German Group of the International Deep Drawing Research Group (IDDRG) will be organizing the 14th Biennial Congress of the IDDRG on 21st to 26th April, 1986, in Cologne and Munich. Safety in mines The 21st International Conference of Safety in Mines Research Institutes is to be held in Sydney from 20th to 25th October, 1985. ILAF A conferences The Instituto Latinoamericano del Fierro y el Acero (ILAFA) has scheduled the following congresses for 1985. Mechanical testing of materials The Deutsche Gesellschaft fiir Metallkunde, together with the Deutschen Verband fiir Materialpriifung and the Fachhochschule Osnabriick, is holding a course on the methods used for the mechanical testing of materials at Osnabriick from 9th to 11th September, 1985. Mine ventilation The Second U.S. Mine Ventilation Symposium will be presented from 23rd to 25th September, 1985, in Reno, Nevada, by the University of Nevada-Reno's Mackay School of Mines and Division of Continuing Education.

Jan 1, 1985

By Z-B. Cheng, X-J. Liu

"Intensive mining of shallow coal seams tends to result in severe subsidence of the ground surface. Surface subsidence is a complex dynamic spatiotemporal process that constantly changes as mining advances. With Liangshuijing coal mine as a case study, 3DEC numerical software was used to simulate the development of the moving subsidence field from open-off cut to full subsidence on the working face. The results demonstrate that the formation of a subsidence field is directly related to the coal seam depth H and the extent of the mine workings. Taking the advance distance of the working face as the unit of scale, the process of surface subsidence can be divided into four stages: micro-change (H/ p), the development of surface subsidence (2H/ p), the formation of a movement subsidence field (3H/ p), and dynamic balance (4H/ p). The changing movement of a subsidence field can be fully described by the characteristics of surface subsidence value, curve slope, and the inflection position. The results provide important technical support for predicting surface subsidence and the temporal–spatial evolution features of mining subsidence. IntroductionChina’s coal output was about 3.52 Gt in 2017 (China National Coal Association, 2018), making it the largest coal producer in the world, accounting for almost half of total world coal production. Coal production and distribution play a vital role in the energy industry of China. However, entire overlying strata, from coal seam to surface, are disturbed as a result of long-term, high-intensity and large-scale mining, causing surface subsidence. This results in groundwater loss, surface desertification, vegetation loss, and mud-rock flows. These issues have become topics of common concern throughout society. According to related research results (Liu 2008), the area of surface subsidence caused by coal mining in China has reached about 600 000 ha, some 0.2 ha (and up to 0.42 ha) of surface subsidence for every 10 000 t of coal produced. Surface subsidence disasters not only damage buildings, water conservancy, transportation infrastructure, and farmland, but also cause adverse effects on individual and community lifestyles, environmental hygiene, and economic development. Deterioration of the ecological environment in mining areas has a long history and is very harmful (Lu, 2015)."

Feb 1, 2019

By S. A. Hosseini, O. Asghari

"Recoverable mineral resources assessment has become a standard geostatistical application in the mining industry, with various geostatistical techniques currently available. This investigation aimed to improve the prediction at the Sungun deposit and to obtain mineral resource models capable of handling (i) the change of support from drill-hole composites to selective mining units (SMUs), (ii) the multivariate nature of the ore control selection criteria that involves both copper and molybdenum grades; and (iii) the local uncertainty on the true (unknown) grades. The solution presented in this paper is to use direct block-support sequential cosimulation in order to construct a set of alternative outcomes of the copper and molybdenum grades on block support over the deposit, with no need for storing point-support values, hence with a considerable gain in memory management and CPU time. The grade realizations so obtained are then processed to calculate the uncertainty in the mineral resources that can be recovered above given cut-off grades, both globally and on a blockby- block basis. IntroductionGeostatistical methods are widely used by mining companies to determine a resource model of the tonnage and head grade of a potential orebody, which is one of the first and most critical inputs underpinning any mining project. The prediction of the grade, tonnage, and recoverable metal for a particular mining plan and the corresponding financial forecast constitute the main technical risks in mineral resource evaluation. The conventional approach to this problem is to predict the mineral grade for constant volumes relevant to the mining plan and to base the recoverable mineral resource calculations on those predictions. Alternatively, one can directly predict the local variability in the mining block grades based on a spatial distribution model (David 1988; Rossi and Deutsch 2014). Multiple realizations can also be constructed by conditional simulation, providing a more complete representation of block grade uncertainty, as well as the uncertainty over multiple blocks. Simulation methods allow quantification of the uncertainty of the mineral resource prediction risks in downstream studies such as mine design, mine planning, or operational optimization studies; the risk assessment is achieved after applying transfer functions to the conditional simulation models (Dimitrakopoulos 2012; Rossi and Deutsch 2014)."

Jan 1, 2017

By L. S. Linda, P. G. H Pistorius

Ferritic stainless steel is utilized to fabricate automotive exhaust systems using a ferritic weld metal. Ductility of the weld metal is higher if its microstructure contains a significant proportion of equiaxed grains. The formation of equiaxed (rather than columnar) grains is favoured by a higher titanium weld metal content. In this study, the Ti content of ferritic stainless steel weld metal was changed by using Tifree (Type 436) and Ti-containing (441) ferritic stainless steel as base metals. The metal-cored welding consumable contained 0.4% Ti. Gas–tungsten arc welding and gas–metal arc welding processes were compared. The weld metal Ti content ranged from zero to 0.5% Ti, as determined from scanning electron microscopy supplemented by inductively coupled plasma optical emission spectroscopy. Cross-sections of the weld beads were subjected to point counting (to estimate the fraction of equiaxed grains) and image analysis (to estimate the average grain size). Point counting proved to be more reliable. The fraction of equiaxed grains was sensitive to the Ti content, but not to the welding process. Below 0.4% Ti, the fraction of equiaxed grains gradually increased with an increase in the weld metal Ti content; above 0.4% Ti, the fraction of equiaxed grains rapidly increased with increasing Ti content. The transition in behaviour at 0.4% Ti corresponded to a Ti content at which Ti-rich precipitates became stable at the estimated liquidus temperature of the weld metal.

Jul 2, 2022

By G. C. S. Burns

"A system has been developed to simulate the mining of the Mufulira orebody. The main output from the system is a picture-gram from which the start date and effective life of all proposed mining faces can be measured. This information provides schedule dates for the completion of major capital development projects and stope preparation activities.The orebody must be divided horizontally into main levels and vertically into blocks of equal interval. Ore reserves are defined by specifying the tonnage contained in each block and main level. Mining faces are defined by their co-ordinates, and may themselves be split into sublevels. The simulation maintains an echelon between contiguous sublevels. Other face parameters control the speed of mining, the availability and relative priority of the face.The required production from each crusher/shaft system is specified. The technique of simulating the mining process in order to achieve the required production is described."

Jan 1, 2014

By P. R. Jochens

South Africa depends to a considerable measure on the exploitation of mineral reserves and the processing of these minerals. One of the prime requirements for the mining and metallurgical industry to continue in this vital role is access to sufficient energy in a suitable form. Hence, four important questions are discussed: Does South Africa have sufficient energy for the processing of its minerals and metals! Will the cost of energy allow South Africa's minerals and metals to compete on world markets? Can mining and metallurgical processes become more energy-efficiency Can mining and metallurgical processes be adapted to the various forms of energy that may have to be utilized in the future? It is concluded that about 26 per cent of the extractable reserves of coal would be required in the mining and processing of 50 per cent of South Africa's reserves of gold, platinum-group metals, copper, iron, ferrochromium, and ferromanganese. However, the reducing agents required exceed the extractable reserves but not the total estimates of mineable in situ resources of metallurgical coal and anthracitic coal. Even under the severe constraint that coal could become virtually the sole source of energy, only about three-quarters of the extractable reserves of coal would have been consumed by the year 2025. The reasonably assured resources of uranium metal that can be recovered at less than $80 per kilogram are considerable and, at current conversion efficiencies to electricity, are equivalent to one-fifth of the extractable reserves of coal. The rate of exportation of energy in the form of U30. was about five times that of coal in 1978. It is pointed out that the price of energy has a direct effect on the competitiveness of metals, and, although constituting only a small proportion of the selling price of precious metals, it represents a significant proportion of the selling price of copper and metals recovered from oxide ores. The scope for the conservation of energy appears to be greater in the extraction and conversion of primary energy-carriers to electrical energy than in other mining or metallurgical fields. Provided that alternative sources of energy can be converted to electrical energy, they can be applied to the mining and metallurgical industries. The decision as to which type of energy should be used in specific mining and metallurgical situations is complicated, and is likely to be subjected to closer scrutiny than in the past. The hope is expressed that the tentative conclusions reached will give rise to more-quantitative analyses from those qualified to undertake such an exercise. Inevitably, the questions asked at the outset give rise to more questions, and the more interesting ones are posed in the context of each conclusion.

Jan 1, 1980

By J. J. leR. Cilliers

ABSTRACT The recently introduced concept of negative taxation complicates estimation of the distributable profit of certain South African gold mines, and an assisted mine could operate at a working loss and yet produce an overall profit for distribution amongst its shareholders. A simple diagram is presented from which the approximate working profit or loss, taxation payable or tax credit received, and the distributable profit of an assisted mine can be estimated directly for any combination of the four main variable operational factors: tonnage milled, recovery grade, unit cost and capital expenditure. INTRODUCTION The effects on the working profits of South African Gold mines caused by changes in unit working costs, recovery grade, tonnage milled and capital expenditure are readily estimated. For normal tax- and lease-paying mines the distributable profit is related to the working profit and the latter is a commonly accepted comparative measure of the profitability of an operation. However, the recently introduced concept of State assistance in the form of negative taxation1, i.e. a tax credit, for mines with a life of less than eight years complicates such estimates. A requirement of State assistance is that an assisted mine must lower its normal pay limit by 16 to 20 per cent, and it will be possible for a mine to operate at a working loss and yet produce an overall profit for distribution amongst its shareholders. In the case of an assisted mine it is therefore necessary for management to judge the effects of changes in unit costs, grade, etc., in terms of distributable profit instead of working profit. This will require repeated calculation of tax to be paid or tax credits that will be received under the numerous possible combinations of the four main variable factors. However, with the aid of the diagram illustrated in Fig. 1, it is possible to assess at a glance the practical effect of these variables on the distributable profit of an operation not subject to tax on the normal formula, or small mine formula, with sufficient accuracy to decide whether a detailed analysis is required. USE OF THE DIAGRAM From the central point 'X' in Fig. 1, a range of tonnages milled per annum has been plotted along the north-bearing axis, a series of costs per ton milled in the northwestern quadrant, recovery grades in the northeastern quadrant, and capital expenditures in the southwestern quadrant. Starting from the tonnage milled per annum, a line is drawn east and west across the two northern quadrants up to the points where it reaches the desired cost- and grade-lines. From these points two north-south lines are drawn into the southern quadrants. A further line is drawn to the east from the point where the western north-south line crosses the desired capital expenditure. Distributable profit is read off in the southeastern quadrant where this line intersects the eastern north-south line. Every possible combination of