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By T. Tholana, P. N. Neingo

"Mining companies globally are currently facing severe economic and financial challenges. In addition to global challenges, the South African mining industry has to face other operational challenges that are unique to the country and which threaten the survival and competitiveness of the industry. Profit margins are being squeezed by rising costs and decreasing commodity prices, while labour productivity is greatly affected by intermittent labour unrest. This paper analyses how the South African gold mining industry has performed pre-, during, and post the global financial crisis of 2008. The competitiveness of the industry in terms of labour productivity and industry cost curve position is analysed for the period 2006–2013 to assess the impacts of both the global financial crisis and labour unrest. An analysis of the South African gold mining industry is presented at company as well as mine level. Productivity measure in this paper is limited to labour productivity, in line with limited reporting on productivity. All the data analysed was obtained from the public domain. IntroductionSouth Africa dominated the world as the number one gold producer until 2009 when China took that position, and today South Africa ranks fifth after China, Australia, Russia, and the USA. According to Statistics South Africa (2009), South Africa still had about 30 years of production in the gold sector, a forecast that fluctuates based on the day’s modifying factors. Although South Africa has a comparative advantage in terms of minerals endowment, there are challenges faced by the mining industry that hinder translation of the comparative advantage into a competitive advantage. The industry continually seeks to address these challenges to remain competitive in global markets while addressing national and community needs.Neingo and Cawood (2014) argued that stakeholders in mining are continually concerned with mine management’s ability to translate use inputs effectively into quality outputs. They further suggested close monitoring of effective utilization of people, materials, and money to obtain maximum production of commodities under given conditions. Productivity is measured in various ways, including unit cost, output per employee, and output per unit capital equipment"

Jan 1, 2016

By R. C. D. Phillis

The annual mine planning process is one of the most important tactical/operational steps towards achieving strategic goals. These tactical plans are part of a very comprehensive Mineral Resource Management process, with the natural sequel to planning being execution. The execution of an underground hard rock mine plan is a multi-project environment that comprises many development-construction-equipping-stoping single project paths, which are referred to as ?stoping paths?. The uncertainty that typifies execution of projects comes in the form of untimely disruptions to constituent tasks and/or project paths. Annual mining plans also include quantified objectives for occupational health and safety, production, quality, cost, employee morale, environment, and corporate social investment. Such objectives make for a highly complex environment that management must contend with?complex in the sense that all the paths and objectives have interdependent constraints. Furthermore, at the time of this paper, Sections54*and 55**of the MHSA*** put the onus on management to ensure legislative adherence. It stands to reason that planning estimates allow excess capacity?buffers?that cushions the impact of untimely disruptions. This paper concerns the fact that despite all the buffers allowed for, time, scope, and budget creeps impact on mine planning and threaten its successful execution. As a consequence, the paper deals with buffer management, the essence of Critical Chain Project Management (CCPM). Effective buffer management provided strategic (executive level) updates without losing the tactical/operational detail necessary for job card creation, especially where professional skills and experience are in short supply. Indicative bottom-line results showed CCPM to be highly effective.

Jan 1, 2011

By A. Nuric, S. Nuric, L. Kricak, M. Negovanovic, S. Mitrovic

"SynopsisRotary drilling with rolling tricone bits is the most widely used method for drilling large-diameter blast-holes in large surface mining operations. This drilling method is applicable to a wide range of soft to hard rock materials. This paper presents a fuzzy model for predicting the penetration rate of tricone rotary blast-hole drilling. The model is based on data obtained during the drilling of blastholes in rocks with various uniaxial compressive strengths in the Veliki Krivelj open pit mine, Bor, Serbia. The model was developed using the fuzzy logic toolbox of MATLAB with the Mamdani inference system. The fuzzy model was tested with 23% of the total dataset. The results obtained show the high reliability of predicting the penetration rates. Although there are possible limitations in applying the model to other open pit mines because of differences in rock properties, the prediction methodology applied in this paper can be used in many other predictions of the penetration rates.IntroductionAccording to Tamrock, rotary blast-hole drill operations depend on four important elements:•,Torque in the drill string drive sufficient to turn the bit in any strata encountered•,A high bit loading capability (pulldown force) sufficient for optimum penetration•,An air volume sufficient to remove chips generated during the drilling and to provide cool air to the drill bit bearings•,The selection of the proper type of bit for the material being drilled (Tamrock, 1984).The effects of rock mass parameters on the choice of the type of tricone bits were investigated by Kricak (1997)."

Jan 1, 2015

By M. Olper

The change in regulations and the strong attention to the environment have suggested some changes in the traditional processes for the recycling of lead acid batteries. Engitec Technologies, marketing the Integrated CX® System, is continuously updating and improving its technology to fulfil the technical, economical and ecological requirements coming from the market and from the environmental authorities. In this paper Engitec Technologies will present the latest technical innovations introduced in the Integrated CX® System.

Jan 1, 2008

By F. S. A. de Frey

The main users of computerised financial evaluation tools in the mining industry are the mining investment analyst, the mine manager together with his financial manager and the mining student (undergruadate and post-graduate). The mining investment analyst's needs mainly centre around the-micro and macro aspects affecting the mining industry in general. The mine manager needs a tool to assist him with the planning, reporting and controlling of production, costs, efficiency, productivity and cashflow. For the mining student studying Financial Evaluation, the main need is for a computer program which will assist him in learning the basics of the subject. This paper concentrates on the needs and objectives of the course Financial Mine Evaluation, the approach to which is presented. Emphasis is placed on the practical computing sessions and the role of the FCS-EPS package as a training tool.

Jan 1, 1987

By R. P. Mohring

The South African Coal Industry had its beginnings in the Eastern Cape in 1859 when coal was mined to satisfy the fledgling settlements in the Eastern Cape. The growth in the industry was relatively slow up to the early 1970s when, firstly, the export business was expanded coupled with a major increase in the quantity of coal converted to liquid fuels and utilized for power generation. To meet this increased demand the industry developed many new operations employing the latest mining technology and systems. Coal production in South Africa reached 204 million tons in 1996 and revenue from exports reached R8 billion making it the second-largest foreign exchange earner after gold. In his address Rick P. Mohring describes the role coal plays in the international energy scene and outlines South Africa?s position as a producer and consumer of coal, and the challenges facing the industry. A wide range of steam-coals are produced to satisfy both the local market (power generation, coal conversion and the metallurgical industry) and the export steam-coal market. South Africa is in a unique position regarding the export market as it is still a relatively low-cost producer and is geographically well-placed to play in both the European and Far East markets. There are, however, a number of challenges facing the industry. To retain our competitiveness in the international market, ways of minimizing the cost pressures caused by high-cost inflation, increased environmental protection obligations and a decreasing quality resource base need to be sought. Locally the coal mining industry has a major role to play in Eskom?s goal of reducing the real cost of electricity by 15% in the next three years. Safety and health, productivity and the adaptation of the latest technology are issues being addressed by the industry to maintain its dominant position within the South African economy.

Jan 1, 1997

By C. Dauber

Implementing new technologies in industrial operations entails the challenge of measuring the improvements gained by the applied technology. Nevertheless, it is absolutely essential to assess the technical and economic benefits in objective and comprehensible numbers to create a platform for further management decisions. Underground coal mines are characterized by numerous, quite complex procedures which make it difficult to determine the specific economic benefit of a new machine, technique, or method. In the OPTI-MINE Project funded by the European Union?s RFCS programme, five underground coal mines applied the latest information and communication technologies (ICTs) to improve efficiency, mine safety, occupational health, and environmental im-pacts. An integral part of the project is the assessment of these technologies by using key performance indicators (KPIs). The paper will describe some examples of the selected KPIs and the preliminary findings.

Jan 1, 2014

By J. M. Ortiz

This paper shows the usefulness of geostatistical conditional simulation combined with the quantification of sampling errors obtained from the analyses of fundamental errors ? validated from duplicate data ? to assess the relevance of the quality and quantity of the information, for short-term mine planning purposes. Traditional blast-hole drilling equipment has been designed for efficient drilling, but not for obtaining high-quality samples. Furthermore, blast-hole sampling interferes with production, and thus usually produces poor-quality results. These results are the basis of short-term plans, where the grades of selective mining units are estimated and used for distinguishing between ore and waste. Under these conditions, misclassification (ore blocks sent to the waste dump and waste blocks processed at the plant) is inevitable, leading to significant hidden losses that can amount to millions of dollars per annum. Reverse circulation drilling with the latest automated sampling technology improves significantly the quality of the information used for short-term planning, and thus reduces misclassification, improving the financial returns of the operation. In this paper, we present the general methodology for assessing the effect of poor blast-hole sampling, as compared to advanced reverse circulation drilling grids at several spacings, in order to arrive at the most appropriate grid for short-term planning. This plan can be prepared well in advance using several additional variables that are usually not available when the plan is based on blast-hole samples. Furthermore, blending options can be analysed in order to optimize plant recovery, minimize the use of sulphuric acid, etc. Three case studies are presented, namely a typical porphyry copper deposit, an exotic oxide copper deposit, and a complex gold deposit, where mineralization is controlled by structures and lithology. This paper shows that in all cases, advanced reverse circulation drilling grids provide good-quality information that, coupled with the use of geostatistics for short-term mine planning, significantly improve the financial returns of the operation.

Jan 1, 2014

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

Experimental results are presented that test the hypothesis that the descaling behaviour of stainless steel slabs following reheating is controlled by interfacial roughening at the scale-steel interface. In this investigation, two stainless steels were considered: type 304 (austenitic, with 18% Cr and 8% Ni) and type 412 (ferritic/martensitic, with 11.6% Cr). It was found that the entanglement that arises at the scale-steel interface was in fact effective in maintaining scale-steel adhesion, under the mechanical descaling conditions used. In the case of type 304, descaling proceeded by fracture along chromite layers, which formed (by internal oxidation) on the austenite grain boundaries; for this steel, the extent of descaling depends most strongly on austenite grain structure, and not primarily on the conditions in the reheating furnace. In contrast, type 412 samples descaled only at the edge of the entangled zone, and showed a greater sensitivity to the reheating conditions; specifically, higher free oxygen in the reheating gas and longer reheating times were found to increase the residual scale thickness. Key words: stainless steel, reheating, scale, entanglement, descaling, fayalite, internal oxidation, grain structure, free oxygen.

Jan 1, 2003

By J. Daavittila, P. Jokinen, M. Honkaniemi

In the latter part of the 1980?s Outokumpu Chrome in Tornio, Finland, was in a situation when its twenty-year-old ferrochrome plant was becoming inefficient to sustain economically sound production. The company made extensive studies on the then available processing methods to find out the best possible processing route. As a result the whole plant was practically rebuilt and expanded. When equipment was proven in practical operation an application for FeMn production was developed. Now when Tornio FeCr-plant is considering the expansion the same type of exercise is to be performed with today?s challenges, which will be discussed in the paper. These challenges include increasing costs or decreasing quality of raw materials, increasing energy costs, stricter environmental regulations and demand of better working conditions. The possibilities to respond to these challenges will be discussed in the paper. The future and continuing development with FeCr includes the better utilization of process dusts and a lower consumption of energy. By adapting the latest automation tools to better control of the process even higher efficiencies can be achieved with present technology. New processes are considered for development in the future and some possible technologies will be described.

Jan 1, 2004

By Haiping Sun, Samir Ganguly, Oleg Ostrovski, M. Yaser Lone

Wettability of graphite by synthetic SiO2-Al2O3-CaO-MnO slags with varied MnO content and by industrial slags was studied at 1350-1600 °C using sessile drop method under argon atmosphere. Initial contact angle was the lowest (110-115o) for the MnO-free slag. For slags with 10-40 wt% MnO, the initial contact angle was in the range 125-135o. The contact angle decreased with the contact time. The change in the contact angle with slag mass was found insignificant. The surface tension of slags obtained from the drop shape analyses was 500-800 mN/m and varied in a narrow range with temperature and MnO concentration. The reduction rate increased with increasing MnO content in the synthetic slag from 20 wt% to 40wt% and temperature. Increasing temperature also increased the rate of reduction. No correlation was observed between the reduction rate and MnO content in the synthetic slags in the range 0-20 wt% and in the industrial slags. The rate of SiO2 reduction from the molten slag was close to the rate of MnO reduction. The MnO-free slag had the largest contact area with graphite substrate. Keywords: reduction, wettability, graphite, slag, manganese, surface tension.

Jan 1, 2007

By J. P. F. Charpin

The transport of large boulders in a furrow from a mining area to a nearby pond was considered. The furrow is filled with a mixture of water and soil particles flowing down to the pond at high velocity. Due to operating constraints, the slope of the furrow is reduced progressively. A relationship is derived, relating the slope of the furrow and the composition of the fluid to the maximum size and shape of the transported boulders. The characteristics of the boulders carried all the way down to the pond may then be determined.

Jan 1, 2007

By A. Bascetin

One very important aspect of mining is deciding what material in a deposit is worth mining and processing, versus what material should be considered waste. This decision is summarized by the cut-off grade policy. The cut-off grade strategy for an open pit mine influences the annual cash flows and affects the net present value of a project. The optimization of cut-off grade strategy requires the knowledge of detailed operational costs, mining sequence, mining operation, processing, and product constraints, as well as the grade distribution of a given deposit defined by pit, phase, and different material types. Cut-off grade optimization algorithms have been developed in the past. The most common criteria used in cut-off grade optimization is to maximize the net present value (NPV). This paper describes the determination of a cut-off grade strategy based on Lane?s algorithm adding an optimization factor based on the generalized reduced gradient (GRG) algorithm to maximize the project?s NPV. The introduced algorithm is a windows based program developed at Virginia Tech that is based on a series of Visual Basic routines within a spreadsheet environment (Excel).The benefits of the methodology are demonstrated using a hypothetical case study. Keywords: Cut-off grade optimization, net present value maximization, generalized reduced gradient algorithm method.

Jan 1, 2007

By Darelle T. Janse van Rensburg

Some of the more recent developments in Paint Technology are solvent free materials. These coatings have mainly been formulated to overcome the negative attributes of solvent-based coatings, i.e. environmental, safety and health risks, potential for solvent entrapment and osmotic blistering, as well as the formation of micro-pores during the curing process. Two solvent free liquid epoxy coatings have been used extensively on power generation plant. However, very little is known regarding their long-term performance under different exposure conditions, as well as whether these coatings actually perform better than their solvent-borne counterparts. In addition, solvent free materials are generally used where outage periods are restricted and coatings need to be applied within a very short period. Though these materials have reportedly much shorter curing times than other conventional solvent-borne coatings, little is known regarding their limits with respect to maximum film thicknesses and being put into service while still being wet/partially uncured. The latter has become common practice at many power stations in the past two years or so. In addition, the application and curing methods of solvent free materials are different to that of solvent-borne materials, and may require equipment and application process changes. This paper covers the application and performance properties of solvent free coatings in comparison to solvent-borne materials primarily intended for immersion service. Numerous coatings were evaluated under immersed static and cyclic hydrostatic pressures. Other tests included short curing / early immersion tests, dry-to-touch and dry-through curing times, adhesion tests, surface tolerance tests, etc. The results show that the solvent free materials have clear benefits with respect to safety, health, environmental and long-term performance, but will be more difficult to apply compared to solvent-borne materials.

Jan 1, 2006

By D. J. Steynfaard

Sishen Iron Ore Mine is situated 280 km north-west of Kimberley in the Northern Cape Province of South Africa. The mine produces and sells high quality iron ore of various specifications to various national and international clients. The saleable product is derived from the blending and beneficiation of different types and qualities of hematite iron ore. This paper documents the new developments which were implemented (or are in the process of being implemented) on the mine in the long-term planning, medium-term planning, grade control and material tracking in the beneficiation plant with special attention being paid to the quality of the final, saleable product. The process starts with the long-term planning where the pit shell and pit optimization is determined by Whittle 4X. New developments include the introduction of a linear programming based scheduling system to enhance the long-term schedule generated by Whittle 4X. The LP route was decided on in order to take into account all the constraining factors of the final product that could not be configured in Whittle. To complement this the XPAC Auto Scheduler scheduling package was introduced to do the medium-term mine scheduling. This 18-month rolling plan includes cost parameters to enable the planner to extract a detailed operational budget from the scheduling while ensuring that production standards are maintained and grade constraints are met. The existing grade control system was enhanced with GPS capabilities and a computer system to do material tracking. The high precision GPS system introduced on the shovels allows for the accurate control of the loading procedures at the mining face. Because of the complicated geology and grade composition of blasting blocks it is imperative to accurately differentiate between different materials in the same blasting block and being able to excavate that with the loading equipment. The GPS system on the trucks allows for accurate location monitoring of dumping in order to keep track of specific material types. The state-of-the-art material tracking system developed for Sishen will enable the grade control officer to keep track and record various parameters of the material from its in situ position in the blasting blocks, through the crusher and onto different stockpiles, in various stages of the beneficiation process and onto the blending beds, into the dispatching trains and eventually into the ships for international distribution. These developments elevate the Sishen planning and grade control systems to a new level of service excellence from which management can obtain accurate and timely information on product status. It also enables Sishen to maximize resource utilization while still complying with the tough market constraints.

Jan 1, 2003

By D. G. Hulbert, D. J. Oosthuizen, D. de V. van der Spuy

Expert Online, as a software system, is aimed at providing plant operators in the minerals industry with effective training and on-the-job assistance. It incorporates a number of features to achieve this goal, of which the most important is its ability to explain the dynamics of the plant and control system in simple language, mimicking an informed plant expert who has online access to the inner workings of the plant and control system. This is made possible by a novel form of Artificial Intelligence, called the Interpreting Expert System. Previous implementations of the IES were only capable of explaining controller actions. Expert Online will extend this capability to also perform the more difficult task of explaining process behaviour. Expert Online will implement three main processes, namely the accumulation of data from the controllers and plant models, the interpretation, processing and filtering of that data and lastly communicating the relevant information to the user, both as written messages and in other audio-visual forms. Although Expert Online is aimed at the operator, other plant personnel, like supervisors and plant managers, will also benefit from it. This paper focuses on the structural and functional design of Expert Online for implementation on the latest version of Mintek’s open control platform, PlantStar, highlighting advances and additions since the previous implementations of the Interpreting Expert System and concluding with an example illustrating some of the principles.

Jan 1, 2003

By G. L. Smith

This paper consolidates the key elements of seven contributions, on strategic long-term planning, to two of the three international conferences on Strategic versus Tactical approaches in Mining held over the period 2005?2008. The holistic concept of strategic long-term planning as developed and implemented at Anglo Platinum is described. Consideration is given to the planning cycle, principles supporting the construction of the long-term plan, and aspects of unique best practice as developed in Anglo Platinum. Further description of Anglo Platinum?s approach to corporate governance, including the processes, methodology, systems, unique tools and techniques that are applied to value and select capital investment options is also given.

Jan 1, 2009

By S. J. Oosthuizen

This article explores the Fray Farthing Chen (FFC) Cambridge process, a novel method for the electrochemical deoxidation of metal oxides in molten salt, discovered at the University of Cambridge in 1997. The process was hailed as a highly promising, potentially low cost, novel method for the production of titanium metal direct from its oxides. The article should inform researchers in the field of some of the challenges in the commercialization of a novel, high profile process involving multiple stakeholders. The author, former senior process engineer at British Titanium Plc, the company originally tasked with commercializing titanium production via the FFC Cambridge process, reviews the latest literature and discusses past and present progress in the pursuit of low cost titanium metal via this process. Topics explored include the history of the process, attempts at commercialization, NASA?s alternative application, and present status of the process. Keywords FFC Cambridge, titanium, molten salt.

Jan 1, 2011

By J. Forwood

The Youga gold mine in Burkina Faso, West Africa, is scheduled to produce first gold in the third quarter of calendar 2007. The project is expected to produce 540 000 oz of gold over 6.5 years, from a conventional open pit carbon in leach mine. The direct capital cost of the project is US$47 M. Etruscan Resources Inc, a Canadian based gold exploration and development company, holds 90 per cent of the project company Burkina Mining Company SA (BMC). The state of Burkina Faso is free-carried for the remaining ten per cent of BMC. RMB Resources Limited, of Melbourne Australia, has arranged a US$35 M project finance facility for BMC (the Borrower) as the majority of funding for the Youga project development. The loan facility was provided by RMB Australia Holdings and Macquarie Bank Ltd (the Lenders) each as to 50 per cent in the lending syndicate. The Lenders also provided a gold hedging facility to guarantee a minimum price for the project's gold production. Burkina Faso is a francophone country, part of the Economic and Monetary Union of West Africa (UEMOA). The project financing is the first such facility to be arranged for a mining project in Burkina Faso, with little or no precedent available in other UEMOA countries. Therefore, while the Youga gold project is forecast to be a robust project applying conventional mining and processing methods, a number of legal, technical, commercial and social issues required identification, evaluation and resolution before the loan could be established. This paper describes that evaluation process and the resolution of these issues. In-house experience and expertise in both the Lenders' and Borrower's teams has facilitated a greater understanding and `ownership' of the issues and hence provided comfort with risks which might not normally be taken in conventional project developments and project financings. As a result, blanket external reviews were not required by the Lenders. A long-standing relationship between Etruscan and RMB Resources also facilitated solutions to a number of issues. Nevertheless, a degree of flexibility by the Lenders, the Borrower and Etruscan was required to successfully close the financing.

Jan 1, 2007