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By B. Gamble

Solid Energy's project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholders' risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007

By H. H. McGregor

SYNOPSIS Changes in the national productivity (gross national product per head of the population) have been assessed in order to derive a target figure for the required annual increase. The conclusion reached IS compared with the targets of the economic development programme of the Republic. Productivity and management structure in the gold mining industry is then analyzed together with investment in plant, machinery and equipment for rock handling purposes. The conclusion is drawn that productivity improvement does not appear to have accorded with the massive expenditures in plant and equipment, and in augmented management. The productivity of the manufacturing and construction sectors of the economy has been examined. The principal difficulty is that the main avenue of approach is the value of product divided by the total labour force. This introduces inflationary questions, and the use of a suitable deflator becomes of prime importance. Severa1 different methods of assessing the productivity improvement in the industrial sector have been used with what is regarded as a comparatively high degree of compatibility. Improvements in productivity in the manufacturing industry up to 1966 appear, from the information available, to have substantially exceeded comparable figures for the mining industry. There is however evidence that thereafter productivity of the manufacturing industry has not maintained this satisfactory rate of increase. If the economy is to achieve the planned rate of expansion, there is no doubt that greater attention to this aspect will be required in the future than has been accorded to it in the past.

The optimal design of production phases and ultimate pit limit for an open pit mining operation may be generated using conventional or stochastic approaches. Unlike the conventional approach, the stochastic framework accounts for expected variability and uncertainty in metal content by considering a set of equally probable realizations (models) of the orebody. This paper evaluates the performance of a new stochastic network flow approach for the development of optimal phase design and ultimate pit limit using a gold deposit as the case study. The stochastic and conventional frameworks as considered here utilize the maximum flow and Lerchs-Grossman (LG) algorithms, respectively. The LG algorithm is restricted to considering an estimated (average-type) orebody model, while the stochastic maximum flow algorithm is developed to simultaneously use a set of simulated orebody realizations as an input. The case study demonstrates that, when compared to the conventional LG algorithm as used in the industry, the stochastic approach generates a 30 per cent increase in discounted cash flow, a 21 per cent larger ultimate pit limit, and about 7 per cent more metal, while it maintains a consistency in phase size.

Jan 1, 2012

By F. G. Hill

The paper reviews the restrictions imposed by the Department of Mines (now the Department of Mineral and Energy Affairs) on the surface use of ground that has been undermined at shallow depths (down to a depth of244m). The reasons for the restrictions are discussed, with special reference to the early records kept by the Department of Mines on subsidence and fracture of the surface. A discussion of the nature of the strata overlying the ore-body, and the effect of undermining, is followed by a detailed account of investigational work, particularly since 1970, on the stability of shallowly undermined ground. The significance of the data collected during the investigations is considered next, with special reference to the social and economic implications. These are so farreaching, that it is proposed that the already flexible approach of the Department of Mineral and Energy Affairs in considering what structures may be built on undermined ground should become even more flexible. To this end, the appointment of a Commission is proposed to collect as much information as possible on the stability of ground undermined at shallow depth, and to revise the current overrestrictive conditions or guide lines that are in use.

Jan 1, 1981

By H. Wagner

The discovery of the gold-rich Main Reef Group of reefs on the farm Langlaagte in 1886 marked the opening of the richest and most extensive goldfield in history. Mining of the narrow reefs progressed from the outcrops to more than 3,5 km, and has made South Africa the foremost mining country in the world. Changes in the political and socio-economic climate create a new challenge to the gold-mining industry. The most significant of these is the emergence of Black trade unions, with their demands for higher wages, improved safety, job advancement, and abolition of discriminatory legislation. Industrial conflicts on gold mines have risen significantly in the past ten years, and are likely to continue in the future, although the causes of these conflicts may change. Events largely outside the control of the gold-mining industry, such as the improved dollar price for gold and the depreciation of the value of the rand relative to major currencies, have enabled the industry to meet the demands for higher wages and to narrow the wage gap. However, labour productivities have improved insignificantly and are a cause of major concern for the future development of the industry. Continued pressure in the industrial-relations area, the inflation of working costs, and the extension of mining operations to greater depths and more difficult areas create major challenges to mine managements and mining engineers. Significant improvements in mining technology, environmental control, and safety will have to be made to ensure the long-term survival of the industry. The unavoidable introduction in deep gold mines of mechanization on a larger scale to meet the requirements of higher labour productivities and a better and safer underground environment will have a major impact on the cost and management structure of these mines. Engineering will assume a more important role on deep gold mil1es, and management styles and structures will have to be adapted to accommodate these changes. The supply of suitably qualified engineers, technicians, and artisans will be a crucial factor controlling the rate of technological change. The industry is well-geared through its Group system to meet these challenges, and to benefit from the experience gained in the operation of highly mechanized mines. However, changes take time to implement and there is very little time left.

Jan 1, 1986

By P. G. Terrazas Prado

This paper presents the results of research on the development and application of a custom-made truck cycle and delay automated data collection system (TCD-ADCS) in a surface coal mining. Truck cycle and delay field data are locally stored in trucks and then synchronized and replicated through a wireless network into a centralized server containing an already-developed integrated production management system (IPMS). The system relies on motion sensing and distance travelled in order to automatically define the cycle starting/ending points, cycle time, position, and delay time. Connectivity and communication between loading equipment and trucks are also established. Communication between the equipment operators and TCD-ADCS system is via a user-friendly graphic interface. The hardware used for the development of this system consists of a rugged touch-screen personal computer, 2.4 GHz radio transmitter antenna, and a commercial GPS receiver. The system was developed, tested, and deployed at a surface coal mine in the USA. Keywords surface coal mining, truck and shovel, data collection, information systems.

Nov 1, 2013

By M. Rudman, L. Pullum, L. J. W. Graham

Centrifugal pumps are the workhorse of hydraulic conveying systems but their performance is derated when viscous non-Newtonian fluids, such as pastes and/or coarse solids are present. The reduced performance for purely viscous Newtonian fluids may be calculated using techniques such as the Hydraulic Institute method, but similar deration for non-Newtonian fluids is not so easy to apply. As part of the AMIRA P599 project investigating high concentration suspension pumping, centrifugal pump tests were systematically conducted on a wide range of non-Newtonian coarse particle suspensions. Suspension sup to 38% v/v of coarse particles with mean diameters in the range of 1.1 < d50< 3.4 mm suspended in carrier fluids with dynamic yield stresses of 0 < t?< 17.2 Pa and shear thinning indices in the range 0.35 < n< 0.79 were examined. Techniques such as the Hydraulic Institute de-ration method require a characteristic shear rate to be assigned before application with a non-Newtonian fluid, and a method based on pump geometry, fluid rheology and flow rate is proposed. This method predicts the dramatic characteristic reduction in head at low flow rates that is often observed and explains why larger pumps are relatively insensitive to this form of head deration. Head deration due to the presence of coarse particles in non-Newtonian carrier fluids is seen to follow similar trends to that of Newtonian suspensions and often dominates the total deration procedure.

Jan 1, 2007

By P. J. Petit

The strategic mission of the South African mining industry is to extract the mineral assets in an energy efficient, economical and safe manner. Drilling has received particular attention in the last few years. As the operations move away from the power source, conventional and old drilling technology result in poor penetration rates, increased drilling shift lengths, slow face advances and limited stope efficiencies. The need for an alternate mining method, performed by a skilled workforce, to increase productivity, has led to the development of the electric rock drilling system for in-stope mining operations. The focus of this paper is a systematic evaluation of the electric rock drilling system as a function of production and technical parameters, in the platinum orebody. The particular electrical reticulation system is illustrated. Power usage, problems experienced, and solutions are described. The safe use of the recently developed drill is elaborated upon by describing protection devices. The testing and certification process, for approval by the recognized authorities, are documented. The testing and certification process, for approval by the recognized authorities, are documented. The human factor is also considered. Known detrimental factors of high noise exposure, vibrations levels and oil emissions are reviewed. In conclusion, recommendations on future strategies for the implementation of electric drilling technology within the mining and construction industries, is included.

Jan 1, 2006

By E. J. Margi

Deep gold exploration such as is used for Witwatersrand gold deposits is both expensive and time-consuming. This paper provides quantitative guidelines as to the economic optimum number of boreholes and deflections within each borehole for a certain reef characterized by its variability pattern and depth below surface in order to maximize the level of confidence for a fixed drilling budget or to minimize the total drilling cost for a given level of confidence. Portions of the Basal, Vaal, and Elsburg Reefs that show a wide range of variability (sample logarithmic variances of 0,63, 1,05, and 2,06 respectively) are examined at depths below surface ranging from 1000 m to 4000 m over a simulated mining property covering 7000 ha (7000 m by 10000 m). It is concluded that four intersections per borehole are optimum in al the cases considered, which cover the majority of current Witwatersrand exploration, with the exception of the highly variable Elsburg Reef at depths of 1000 m and 2000 m, where boreholes with one and two intersections respectively should be preferred.

Jan 1, 1987

By G. Panopoulos, R. P. King, A. H. Juckes

The flotation characteristics of two South African coals were investigated: one from the Dumacol Colliery in Natal, and the other from Landau Colliery in the WitbankCoal Field. Samples of fine coal (smaller than 1 mm)were studied, the Dumacol coal showing significantly better ash-liberation characteristics than the Landau coal. Neither coal was found to produce satisfactory flotation concentrates, except at very fine sizes. The poor flotation performance can be ascribed to the non-selective flotation of unliberated particles that may contain considerable quantities of ash. Flotation recoveries were greatest for particles between 100 and 200 µ m, and fell of rapidly as the size increased above 200 µ m. Very fine particles were found to float adequately, and acceptable concentrates can be made at comparatively high yields from materials smaller than 75 µ m. The flotation of ultrafine coal was demonstrated successfully in a continuous pilot plant. This result opens the way to a potentially viable industrial process for the beneficiation of ultrafines from the Witbank No. 2 seam, which for decades has been regarded as non-floatable.

Jan 1, 1986

By Milton Syamujulu

In 1994, Nkana smelter commissioned a Multimillion US$ Dollar Chilean Teniente converter (CT) in its operations in order to improve its smelting technological base. The main objective was to reduce the overall smelting energy costs and increase the sulfur capture for sulphuric acid production to support the company?s leaching operations at Nchanga Tailings Leach Plant. A decade of CT operations have since ensured following its installation and startup. This paper provides a Technical and Operational Audit of the performance of the CT in the first 10 years of its operations at Nkana smelter.

Jan 1, 2005

By D. Harbottle, D. Rhodes, T. F. Jones, S. R. Biggs

Multiphase process design and optimization often depends upon the rheological properties of sludges and slurries. In practice the task of determining these important properties is usually carried out by removing small samples from a process line or process unit and performing tests with proprietary bench-top analysers near to site or at a remote laboratory. Sampling will remain an important procedure in industrial processes, but there is also a strong case for augmenting the routine information obtained using an in situ sensor, as suggested below. ?Sampling protocols can result in extensive turnaround periods from sample collection to the generation of results. The delay can have an effect on a variety of factors such as product quality, process operability and efficiency. ?Sampling of toxic or radioactive material can prove an even greater challenge to minimize human involvement. ?Removal often changes the rheology of a specimen, and might lead to incorrect conclusions being drawn about the condition of a sludge. ?Sludge and slurry in a containment suffers a gravitational gradient, so that a removed sample should be paired with its location, particularly in the vertical dimension.

Jan 1, 2007

By K. R. Noble

The planned extraction of the No. 1 shaft pillar at Blyvooruitzicht Gold Mine highlighted a number of potential problems. In spite of the relative shallowness, careful thought had to be given to stope phasing owing to the detrimental effect of the anticipated geology and the fact that uninterrupted hoisting was necessary. Extensive use was made of computer modellig to design the stope phasing, determine the influence of regional support and to predict the direction and magnitude of displacements in the shaft. The paper describes the success of this design approach, and measured displacements in the stoping horizon and shaft barrel are compared to those obtained from the original computer model

Jan 1, 1987

By R. K. Brummer

A simplified two-dimensional plane strain numerical technique for the non- linear modelling of a tabular mining excavation in brittle host rock under high stress conditions is described. The model has been developed using relatively straightforward assumptions based on extensive underground investigation of the fracturing and deformation of rock at the stope face in deep gold mines on the Witwatersrand, together with observed rock behaviour under laboratory conditions. The reef rock is modelled as a linear string of yielding elements which interact horizontally, while the elastic rockmass remote from the reef is modelled using boundary element techniques. This elementary technique is shown to produce results which agree closely with the observed behaviour of the fractured rock during the mining of a remnant pillar

Jan 1, 1987

By M. M. Oosterveld

Diamonds are mined from ancient raised beach deposits in southern Namibia where complex geological controls have resulted in patchy diamond distribution, largely related to irregularities (trapsites) in the bedrock. The distribution of the number of diamonds per sample is a discrete, reverse- J shape distribution which can be characterized by two parameters. These parameters have been transformed into a Beta and Theta Contribution which can be interpreted as reflecting the &apos;quantity&apos; and &apos;quality&apos; of the trapsites. The relationship of statistical parameters, obtained during the sampling of an ore deposit, to the geology of the deposit is an important element of ore reserve estimation. The large-scale regional trends in the contributions have been explained in terms of the geology.

Jan 1, 1987

COUNCIL FOR 1990/91 President H.G. Mosenthal President Elect RD. Beck Senior J.P. Hoffman Vice Presidents Junior Or H. Scott-Russell Immediate Past President Or O.K.H. Steffen Honorary Treasurer OrH. Wagner

Jan 1, 1991

By H. W. Read

Sustained growth in demand for platinum group metals has resulted in an unfettered increase in new projects undertaken by the platinum producers. These projects are outsourced to various degrees. The argument of this paper is that both the client?s project manager and the consultant?s project manager are essential elements in the successful execution of a project. Their roles are not only different but also complementary, and are defined in the paper. Data gained from considerable experience in the South African corporate mining environment underpins the opinions expressed in the paper. Furthermore, an extensive literary search was undertaken to determine trends in related industries outside the South African context. Throughout the argument it is emphasized that project philosophy emanates from a systems view and must be treated as an overarching whole. The elements of project management become meaningless unless they are connected to one another and integrated into a cohesive unit. Advancing the knowledge field of project management is of critical importance to mining investors. There is no doubt that a key determinant of the sustainability of mining business is closely related to the efficiency of all-inclusive project management. From pre-investment and feasibility studies, implementation and execution, to ramping-up to full production, scientific project management has a critical role to play. Guidelines for the pursuance of this ideal are proposed. The introduction contextualizes the subject matter in an overview of the evolution of mine management in South Africa and abroad. Then, brief insight is given into the philosophy of project management. This exposition is confined to the predispositions, presuppositions and defining characteristics of project management. The core of the paper looks at the roles of the client?s project manager in relation to the consultant?s project manager. This section is underpinned by practical experience gained by the author on numerous mining projects. A view is taken of the future of project management in the mining industry. The conclusion summarizes the argument and aligns project management trends in the mining industry.

Jan 1, 2004

Commissioning of the Cannington processing plant began in October 1997. The nameplate capacity (of 1.55 million tonnes of ore per annum) was achieved relatively quickly. Since then (like many mines) the operation has strived to increase throughput and improve valuable metal recoveries, to offset declining head grades and lift the value of the operation. The processing plant now has the capability of treating over 3.2 million tonnes of ore per annum and in financial year 2005/06 the combined concentrate production exceeded 600 000 wet tonnes, approximately 80 per cent above concentrate output in the first full year of operation (at the design feed rate). This improved performance was achieved by making changes and additions to each of the major unit processes - primary grinding, flotation, leaching, filtering and paste fill preparation. The changes have included: adding a fines flotation circuit, expanding the grinding circuit, adding a pebble crusher, switching from continuous to batch leaching, building paste conveyors and decommissioning the column flotation cleaning circuits. This paper reviews these changes, outlines the current operating practices and discusses the challenges or opportunities that remain.

Jan 1, 2007

1. Book review The geology of some northern Nigerian anorogenic ring complexes, by J.N. Bennet, D.C. Turner, E.C. Ike, and P. Bowden. The British Geological Survey: Overseas Geology and Mineral Resources, no. 61. London, HMSO, 1984. 66 pp. Reviewer: R.H. Ingram 2. Mintek reports Report M226 The separation of tungsten and molybdenum by the formation of sulphide complexes and extraction into a weak-base resin. Report M228 The solvent extraction of zinc, iron, and indium from chloride solutions by neutral organophosphorus compounds. Report M230 Shear flocculation of fines for improved flotation. Report M239 A mineralogical study of residue from the column leaching of a low-grade nickel-copper sulphide ore.3. Recent publication Driger Review, special edition, act. 1985. 48 pp. (Copies obtainable from Roly Nyman, HAMPO PMIE Division, P.O. Box 170, Joham1esburg 2000.) Black Mountain&apos;s achievement The 13 689 t consignment of metal concentrate that was loaded aboard the bulk carrier &apos;George&apos; and shipped out of Saldanha Bay early in December brought the number of tons exported from Black Mountain via the Sishen-Saldanha railway and harbour system to one million.

Jan 1, 1986

By D. C. Andersen, G. L. Smith, A. M. Marsh, J. Pearson-Taylor

Central to the success of any mining company is the ability to manage capital investment effectively so as to ensure acceptable stakeholder returns within an overall strategic context. Critical to this process is the effective selection and implementation of a strategically aligned project portfolio that enables optimal resource exploitation while operating within mandated bounds and identified constraints. Consideration is given to the strategic long-term planning process, an investment prioritization methodology and specific tools and techniques based on the discounted cash flow philosophy.

Jan 1, 2006