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A Seismic Hazard Scale (SHS) has been developed to provide a practical seismic hazard assessment tool applicable to mine site personnel. It has been applied to seismic data sets from numerous Western Australian mines. The SHS is applicable when quantifying seismic hazard on a mine wide scale, on a mining block scale, and on a local cluster-by-cluster scale. Spatial mapping of variations in seismic hazard is a particularly powerful application of the scale. The SHS is sensitive to temporal increases in seismic hazard. It has also been shown that the SHS can be applied to estimate seismic hazard when seismic monitoring data are not available. The SHS is a simple derivation of the Gutenberg-Richter relation. There are assumptions and limitations to the SHS that need to be considered when applying it to mine seismicity data.

Jan 1, 2004

By C. Tan, C. Detournay

Wellbore stability is a major concern for drilling in naturally fractured formations. The infiltration of drilling mud into the fractures is a factor, which may compromise wellbore integrity due to the loss of strength experienced by the fractures. The reduction in the fracture frictional and cohesive properties is attributed to weakening of the infill materials and lubrication of fracture asperities by the mud filtrate. One way to investigate the influence of mud infiltration on wellbore stability in fractured formations is to use a numerical modeling approach. A requirement for the numerical model is the ability to predict the region of mud infiltration. This paper describes a numerical technique to model the extent of mud infiltration for application in coupled fluid-mechanical simulations in densely fractured rock masses using the computer code, UDEC. Several factors are considered including fracture pattern, in-situ stresses, reduction in joint frictional angle and cohesion, viscosity of the mud filtrate and fracture plugging. Results of numerical simulations are presented to illustrate the technique and show the influence of these factors on the extent of mud infiltration. Un des problèmes importants posés par le forage en milieu fissuré saturé, est celui du maintient de la stabilité du puit. L’infiltration de boue de forage dans le massif peut avoir pour effet de réduire les propriétés frictionnelles et cohésives des fractures et de compromettre ainsi la stabilité du puit de forage. Le radoucissement des propriétés des fractures est attribué à la dégradation du materiau de remplissage et au pouvoir lubrifiant des boues. L’analyse numérique offre un moyen d’investiguer l’influence jouée par l’infiltration de boue sur la stabilité du puit. Un des critères de sélection du modèle numérique sera son pouvoir de prédiction du domaine d’infiltration de boue. Cet article décrit une technique numérique permettant de modéliser l’infiltration de boue de forage dans le cadre de simulations hydro-mécaniques, en milieu à haute densité de fractures, effectuées avec le logiciel de calcul UDEC. Parmis les facteurs tenus en compte, on trouvera la nature du réseau de fractures, les contraintes in-situ, le radoucissement en friction et cohésion des joints, la viscosité de la boue et le bourrage des fractures. Des résultats de simulations sont présentés pour illustrer la technique et montrer l’influence de ces facteurs sur la taille du domaine d’infiltration de boue. Bohrlochstabilität ist ein wichtiger Aspekt für das Bohren in geklüfteten Gebirgsformationen. Das Eindringen der Bohrlochstützflüssigkeit in die Klüfte kann die Bohrlochintegrität wegen des Verlustes der Festigkeit des Kluftsystems gefährden. Die Reduktion der Reibung und kohäsiven Eigenschaften ist der Schwächung der Kluftfüllung und der Schmierwirkung der eingerungenen Stützflüssigkeit in Bezug auf die Kluft-Asperities geschuldet. Numerische Berechnungen sind ein Weg zur Untersuchung des Einflusses der Infiltration der Bohrlochstützflüssigkeit auf die Bohrlochstabilität in geklüfteten Gebirgsformationen. Eine Voraussetzung für numerische Modelle ist die Fähigkeit den Bereich der Infiltration der Stützflüssigkeit zu prognostizieren. Diese Publikation beschreibt ein numerisches Verfahren, um die Reichweite der Infiltration von Stützflüssigkeiten mittels fluid-mechanisch gekoppelter Simulationen im engständig geklüfteten Gebirge mit dem Programm UDEC zu modellieren. Verschiedene Faktoren, wie Kluftmuster, Gebirgsspannungszustand, Reduktion von Kluftreibungswinkel- und kohäsion, Viskosität der Stützflüssigkeit und Rissabdichtung wurden untersucht. Ergebnisse numerischer Simulationen werden präsentiert, um die Vorgehensweise zu illu

Jan 1, 2003

By D. M. MacHunter, T. Lawson, D. K. Henderson

The development and commercialization of new generation high tension electrostatic separators has provided a basis for simplifying mineral separation plant circuitry. The inclusion of new design features including insulated plate electrodes that have resulted insignificantly improved separation efficiencies in electrostatic separators are described. The increase in separation efficiency has resulted in a reduction in the number of treatment stages required to produce final high grade mineral products. Comparative performance data on different feed types are presented. A comparison between mineral separation plant flowsheets using both conventional and new generation high tension electrostatic separation technology is presented. A 55% reduction in the number of installed electrostatic separators and a 36% reduction in plant area was achieved through the use of this new electrostatic separation technology.

Jan 1, 2003

By M. Matema

Paper written on project work carried out in partial fulfilment of BSc (Eng.) Metallurgy and Materials Engineering Small and large welded aluminium specimens were tested in fatigue and the results compared with design curves for aluminium in specification BS8118. Metallurgical tests were also performed on the specimens in order to correlate microscopic and macroscopic phenomena. The small-scale fatigue test results were in reasonable agreement with results in BS8118, whereas the large-scale fatigue tests showed that BS8118 is conservative.

Jan 1, 2005

By B. R. Broekman, K. J. R. Ford

Over the last decade significant development and use has been made of a simulation model that describes the HCFeMn smelting operations in Assmang Ltd. This spreadsheet based, semi-empirical, predictive model is derived from data from the submerged arc furnaces at Assmang?s Cato Ridge, KwaZulu-Natal smelter site. Departures from the empirical base case mass balance due to changes in the ores, reductant feeds and operating parameters are accounted for by use of fundamental relationships and heuristic type ratios which are applied in an iterative manner in the model. The model performs a sequential set of calculations to iteratively converge on a fully consistent mass and energy balance solution, which predicts Mn alloy and slag output masses and compositions for a given set of feeds. 440 MWh per operating day is used as the basis of energy input. The paper describes the key model components, assumptions made and calculation approach. Added to the mass and energy balance is a cost and revenue balance, which allows prediction of the economic performance for each simulation. Substantial use of the model has been made in simulating the performance of the current Assmang HCFeMn furnaces for both smelter investigations and future production planning. The model has also been a valuable tool in the strategic analysis of the use of future Mn ores and has formed the vital link between mine ore grades (metal and slag elements) and the expected alloy output, grade and profitability. Additionally, the model has been used in benchmarking exercises to predict other Mn smelting operations with remarkable accuracy. The paper highlights some aspects of the approaches taken in using the model to benchmark Assmang?s own furnace performance and cost competitiveness with other producers. For Assmang the development and application of this modelling technology has led to transformation in understanding of the Assmang HCFeMn furnace operations and increased awareness of the potential of its Mn ore bodies.

Jan 1, 2004

Gravity-driven rock falls account for a large proportion of all fatalities and injuries in underground mines. Potentially unstable blocks of rock are found in the hanging wall of excavations, which may be delineated by natural joints or stress fractures. These blocks, referred to as keyblocks, will fail if their weight exceeds the support capacity or if they are located between support units. This paper describes a computer program which simulates blocks in the hanging wall of an excavation based on measured properties of fractures and joints. Keyblocks are identified and placed at random locations in a predefined excavation. The keyblocks are tested against the support to determine whether they fail the support, drop out between the support or are stable. By repeating the procedure several thousand times, statistics of the probability of failure of the keyblocks are obtained. This approach allows the relative hazard associated with different types of support or excavation orientations to be obtained. It is concluded that a probabilistic approach is suitable for the evaluation of supports effectiveness in situations where large numbers of discontinuities or stress fractures are exposed in excavations.

Jan 1, 1998

By F. A. Camisani-Calzolari

The latter half of the 20th century has seen the proliferation of a series of codes to address commodity needs which were brought about by rapidly advancing technologies and the globalization of markets and consumerism. This paper addresses the specific needs and the origin of this surge and presents these codes in the context in which they were developed. It also compares the main codes or groups of codes and elaborates upon their strengths and weaknesses. Three main categories of codes are identified, namely codes for reporting to international agencies, codes addressing government needs and, finally, codes for the investors and the stock market. Codes governed by international agencies usually relate to strategic commodities which have highly specialized fields of usage such as nuclear power generation where international cooperationis eventually the only viable approach for both the development of technologies and their applications. Codes for reporting to governments address the necessity of each state to exploit its mineral potential profitably and to secure the preservation of wealth for future generations. Reporting to investors is experiencing a considerable popularity as of late because of globalization in mining and the growing need for outside financing of mining projects, whose capital requirements are getting out of reach for the average mid-cap mining company. All these codes have advantages and shortcomings dictated by the specific circumstances under which they were developed, therefore necessitating the definition and implementation of some kind of international standard whereby investments and the spread of information across political boundaries would be facilitated. Though none of these codes might ever become international in the true sense of the word because of significantly different legislations at national level, a step that would greatly contribute to the cross-border disclosure of information would be the reciprocal recognition of competent persons by the major mining countries, including China and Russia. It is also becoming essential that financial institutions and investors be properly advised on mining projects by reporting reserves and resources in a transparent and responsible way with the relevant public disclosures being compiled by professionals who take full responsibility for their submissions. Keywords: reporting codes, mineral resources, mineral reserves, competent person, UN Framework Classification, IAEA classification, JORC Code, SAMREC Code and CRIRSCO.

Jan 1, 2004

By A. Butler

This paper explains the politics of mine nationalization in contemporary South Africa. Nationalization and privatization typically occur in the oil, mineral resources, and state utilities sectors, and they tend to follow one another in a long-term cyclical pattern. The paper explains why the current international environment has encouraged demands for nationalization and other forms of ?resource nationalism? in the South African minerals sector. It goes on to describe how the resurgence of resource nationalism has been influenced by internal factional politics in the African National Congress. It concludes that nationalization is unlikely to be the outcome of current policy deliberations within the ANC.

Jan 1, 2013

By S. du Plessis

Nationalization is high on the policy agenda in South Africa. This paper considers the case for nationalizing the local mining sector from an evidence-based perspective, which is derived from theoretical considerations and related to the known features of the South African mining sector and economy. A strong case against nationalization emerges, which can be summarized as follows. The mining sector is competitive and therefore a poor candidate for public ownership. Furthermore, the resources sector does not dominate the South African economy nor does it create the risk of a decrease in the competitiveness of the industrial sector via the unintended adverse impact of an appreciating real exchange rate due to a commodity boom (Dutch Disease). Nationalizing the mining sector will cost the government more than it receives. This is not only a bad idea in itself, but it will limit the scope for distributive policies on the national budget. The contemporary international experience demonstrates the risks of fiscal imprudence. Finally, nationalizing the resources sector will undermine support for those very market-based institutions required to achieve a higher long-run growth trajectory.

Jan 1, 2013

Mine wide, underground wireless communications are possible with the use of Ultra Low Frequency (ULF) technology. Due to the propagation through rock of ULF radio signals a relatively small antenna can provide communications coverage over a complete mining operation. Starting as a Personal Emergency Device (PED) for emergency messaging to miners under all circumstances, the ULF communications system has grown to include capabilities of remote control of underground equipment such as pumps and fans and centralised blasting initiation. This technology is now in use on 5 continents having lately made it onto the African mining scene. The paper and presentation will provide the audience with the benefit from international mining know-how in this technology as well as local African experiences. A recent commissioning exercise for example, is expected to pay for itself in electricity savings within a few months. These and other results from practical demonstrations and usage will be covered. This novel technology becomes an integral part of the daily operating infrastructure of a mine with immediate safety and business benefits. It is able to reduce capital expenditure and is designed for ease of routine operational use. The paper will conclude with insights into current R&D for further development of this technology.

Jan 1, 2007

By S. J. S. Ferreira

Anglo American Platinum's Khomanani 2 shaft changed over from down-dip mining to breast mining in 2004. The changeover was made to ensure that production targets were met, as it was said that predevelopment for down-dip mining was not fast enough to sustain the required ore reserves; nevertheless, production performance did not increase as expected. In this study a trade-off was performed between down-dip mining and breast mining on the Merensky Reef at Khomanani 2 in order to find the most suitable method for mining the Merensky Reef. Data was gathered by means of a literature survey, underground observations, and interviews with personnel as well as data from various departments on the mine. The two mining methods were studied and then evaluated in terms of the following criteria: safety, mining rate, cost and other factors which were identified as the main drivers of the mine. A scaling system was used to rate the performance of the two mining methods. Analysis of the results shows that down-dip mining and breast mining have the same safety performance ratings. Breast mining has a better mining rate performance than down-dip mining. Breast mining was found to be costly in comparison with down-dip mining, which has a good cost performance rating. The overall ratings of the two mining methods are very similar, with down-dip mining achieving a rating of 76 and breast mining 75.5 out of an optimum 102. Khomanani 2 currently practices breast mining, and with such a slight difference in performance rating between the two methods, it will not be worth changing over to down-dip mining as production is likely to be adversely affected during the changeover. Down-dip mining does, however, have potential for improvement in its performance rating. Further studies focusing on the improvement of the mining rate performance for down-dip mining are needed to see if this potential can be realized. If significant improvement can be made in the performance rating for down-dip mining, a changeover to down-dip mining can be reconsidered.

Jan 1, 2012

By M. Ayhan

Drums of a modern longwall shearer are manufactured to include various constructional features conveying extracted material onto the face conveyor as efficiently as possible. Designing a drum with a conical shell or with reduced vane length, consequently with a stepper vane angle, is the most widely employed method in an attempt to increase loading efficiency. This study compares loading performances of two such drums, one having a conical shell with modified loading vanes, the other with a cylindrical shell with reduced vane length. Firstly, the loading performances of drums are predicted and the maximum haulage rate attainable with the drums are calculated. Then the performances of drum are compared by long-term comprehensive underground trials with coal shearers under similar conditions during the production operation of Park Termik Cayirhan coalmine in Turkey. Although higher loading performance is predicted for cylindrical drums, the in situ trials point out that Globoid drums have a slightly higher loading performance than cylindrical drums. Furthermore, the relationship between operational variables, i.e. extraction height, sumping depth, haulage rate and in situ loading performance, were investigated statistically on the basis of data gathered during the underground trials. Keywords: longwall mining, shearer drums, loading performance.

Jan 1, 2006

By P. C. Schutte

Ergonomics is the scientific discipline concerned with the understanding of interactions among humans and other elements of a system, and the profession that applies theory, principles, data and methods to design in order to optimize human well-being and overall system performance. Despite the fact that the application of ergonomics principles can make a major contribution to the management of significant occupational safety and health risks, ergonomics is currently applied on a limited scale in the South African mining industry. The objective of this paper is to provide a perspective of ergonomics, the main aim being to create a point of departure for the development of strategic objectives to enhance existing health and safety initiatives through the application of sound ergonomics principles. Two of the major consequences of poor ergonomics, namely work-related musculoskeletal disorders and worker fatigue, and possible means of introducing ergonomics into the South African mining industry, are discussed.

Jan 1, 2005

By G. M. Dowo

The widespread environmental damage caused by slimes dam construction requires rehabilitation as one of the key management strategies towards land restoration. From the time when Mhangura Copper Mine in Zimbabwe was shut down in 2000 due to viability problems, no follow-up studies were carried out on the slimes dams to assess their development with respect to ecosystem function and longterm recovery. The ecosystem function analysis (EFA) method was thus employed to achieve this end. EFA is a monitoring procedure that establishes how well an ecosystem functions as a biophysical system through the use of rapidly assessed field indicators. The field procedure makes use of simple visual indicators that are related to various soil surface processes. Conventional sampling methods are used to collect the vegetation data. The data was first analysed using landscape function analysis (LFA) software packages and then with various multivariate statistical techniques. In total 27 species were recorded from 14 families; 21 of them occurring in the acacia woodland and only 8 on the slimes dams. Hyparrhenia sp. was the dominant grass on Dam 5 and Imperata cylindrica dominated Dam 6. Acacia saligna was the most abundant tree species on the dams. The tree layer on the slimes dams was not as developed as the grass layer. The rehabilitated slimes dams converged with the natural woodland for the LFA indices of stability, nutrient cycling, and infiltration, which suggested a high level of functionality. The main factors affecting the sustainability of the rehabilitation are postulated to be fire, grazing, and tree harvesting. The study contributed to the importance of, and methods used for, assessing ecosystem function on rehabilitated slimes dams in Zimbabwe, which are often ignored as most efforts focus on the establishment of vegetation on the dams. Keywords ecosystem function analysis, EFA, mine tailings, rehabilitation, monitoring, Mhangura Copper Mine, ecosystem function.

Dec 1, 2013

By N. Reddy

The influence of local geology and rock mass characteristics on deformations during a rockburst caused by a controlled blast was studied. This was done by means of visual examination, mapping and photography both before and after the blast. We found that the ejected material was bounded mostly by fractures associated with the bow-wave fracturing and bedding surfaces and that existed prior to the blast. Most of the damage was caused by shake-out. This information is important input for the design of rockburst resistant support systems under conditions of moderate stress.

Jan 1, 2001

By A. Kazemi, M. A. Ahmadi

Pressure tunnels are constructed nurously in related with powerhouse. In some cases, according to high internal water pressure, rock mass around tunnel can seldom suffer this pressure. So installation of concrete lining which interacts with rock mass and suffers parts of this pressure and transfers the rest of the pressure to the rock. In this paper hydromechanical interaction between rock and lining is investigated. With using empirical and numerical methods concrete lining for Symareh waterway is designed. Initial support of 10 cm reinforced shotcret with wire mesh and rock bolts pattern of 2.5*2.5 m with length of 4 m is suggested. By using FLAC package final lining with paying attention to axial force and momentum in reinforced concrete was designed. Reinforced concrete with 60 cm thickness and two rows of bars, 18 mm diameter and 20 cm spacing are designed. Also for preventing cracks in concrete which caused by the change of temperature and shrinkage, bars with 10 mm diameter and 25 cm spacing, and also bars with 8 mm diameter and 10 cm as minimum shear bars are suggested. Plusieurs galeries en pression se construisent en liaison avec les centrales électriques. Dans certaines galeries, suite à une haute pression interne de l'eau, le massif rocheux autour de la galerie ne peut pas supporter cette pression. L'installation d'une couche de béton a l'intérieur de la galerie donc réagit avec les roches et support d'une partie de cette pression et transfère le reste de la pression aux roches. Dans ce papier, l'interaction hydromécanique entre la roche et la couche en béton a été étudiée. En se basant sur les méthodes empiriques et numériques le système de support de galerie de passage d'eau de Saymareh a été conçu. Un soutènement initial d'une épaisseur de 10 cm de béton étant renforcé par un grill métallique et une maille de boulon (2.5 * 2.5 m) d'une longueur de 4 m a été proposé. En utilisant le logiciel de FlAC, la couche finale en béton selon les forces dans le béton a été conçue. Le béton renforcé d'une épaisseur de 60 cm et deux ranges d'armateurs (18 mm de diamètre) avec un intervalle de 20 cm a été conçu. De plus; pour éviter des fissures dans le béton suite au changement de la température et de l'extraction, des armateurs de 10 mm de diamètre et de 25 cm d'intervalle pour augmenter la résistance au sciesiement du béton ont été proposes Unter Druck stehende Tunnels werden hauptsaechlich im Zusammenhang mit Kraftwerken gebaut. In einigen Faellen, wo der Wasserdruck zu hoch ist, Kann selten die Felsenmasse diesen hoehen Druck allein aufnehwen. Deshalb werden sie mit Betonauskleidung versehen, die wegen guter Wechelwirkung mit der Felsenmasse einen Hauptanteil des Druckes aufnehmen Kann, wobei der Rest an die Felsenmesse weitergeleitet wird. In dieser Arbeit wird die hydromechanische Wechelwirkung zwischen der Gesteinmasse und der Auskleidung untersucht. Mit Hilfe empirischen und numerischen Verfahren sowie Kombination der beiden wurde eine Betonauskleidung fuer die Symareh Wasser Kannal koustruiert. Als erstes wurde ein 10Cm dicker armierter Beton mit einem Mashengitter von 2.5*2.5 sowie den gleichen Felsbolzenabstaenden und einer Laenge von 4 m vorgeschlagen. Mit Hilfe des FLAC Programms wurde die Hauptauskleidung unter Beruecksichtigung von Axialkraeften und Momenten im Stahlbeton koustruiert. Der 60 Cm dicke Stahlbeton wurde mit zwei Reihen von Stangen, 8 mm im Durchmesser und in Abstaenden von 20 Cm koustruiert. Ferner im Sinne der Vorbeugung gegen Rissen im Beton, die durch Temperatur aendeungen und Schrumpfungen bedingt sind, wurden Stangen mit 10 mm Durchmesser und 2.5 Cm Abstaenden zur Erhoehung vor Scherfestigkeit des Betons vorgeschlagen.

Jan 1, 2003

By C. Lottering

Copper sulphate solutions are produced during the pressure leaching of first-stage leach residue in a typical base metal refinery process. Apart from impurities such as selenium and tellurium, this leach solution also contains other precious metals (Rh, Ru, and it) due to dissolution in the pressure leaching stage. Selenium and tellurium are removed from the leach solution by precipitation with sulphurous acid, since these elements negatively affect electrowinning. This study investigates the feasibility of modifying the Se/Te precipitation process step to achieve significant rhodium precipitation in addition to selenium and tellurium precipitation, in order to reduce the rhodium inventory of the process. Thiourea, S02, formaldehyde, formic acid, and sodium thiosulphate were evaluated to determine which of these reagents would achieve the highest Rh precipitation. Based on these screening tests, SO2 and thiourea were selected to be used as precipitation reagents in optimization tests. During these optimization tests, the operating temperature (80 to 150°C) and the amount of reagent added (80 to 140 per cent excess) were varied to evaluate the effects that these operating conditions have on the precipitation behaviour of Rh as well as Se, Te, Cu, and Ni, and to propose appropriate operating conditions. It was found that thiourea resulted in good Rh and Se precipitation (typically in excess of 90 per cent), but precipitated noticeably more copper and nickel from the solution than when SO2 was used. In addition, thiourea had poor Te removal characteristics. SO2 achieved a maximum of 70 per cent precipitation of the rhodium. Faster kinetics and a larger extent of Te precipitation were, however, observed when using SO2 compared to thiourea.

Jan 1, 2012

By P. K. Hofmeyr

Base Metal (Cu, Ni, Mo, Zn, Co etc.) analysis traditionally has been very slow in conventional analytical laboratories which can lead to additional costs being incurred in waiting time of drill rigs or mining excessively off-reef. Recent developments in the automation of analytical laboratories now allow for very rapid turn-around times for base metal analytical data which can help reduce such costs as well as reduce the unit costs of the analyses themselves. 2.0 CONVENTIONAL ANALYTICAL LABORATORY PRACTICE Conventional analytical laboratories are necessarily are very manual. Sample preparation is slow and laborious, samples are moved from stage to stage manually and, typically, all samples are processed in batches so a sample which is the first to be, say, milled has to wait for the complete milling of the batch before it advances to the next stage eg. mixed with wax prior to pelletising for XRF analysis. Inevitably this results in long sample data turn-around times for laboratories handling large numbers of samples. Manual sample preparation can only be accelerated by increasing staff which increases costs and can lead to additional errors being introduced. Cleaning of sample preparation equipment, eg. crushers and mills, between samples is essential to avoid cross-contamination between samples and this is slow and labour-intensive. In manual sample preparation the correct sample numbers staying with the samples is totally dependent on the efficiency of laboratory operators. It is extremely difficult to detect when errors have occurred due to the switching of sample numbers during the sample preparation stages. Running duplicates and QC samples at best is only partially successful in detecting when sample number switching errors have occurred. Errors of this nature and cross-contamination problems due to incomplete cleaning of sample preparation equipment tend to occur when laboratories are working at pressure due to high sample numbers and when supervisors are not present during 24/7 laboratory operations which is often required on plant process control laboratories. These problems are common to all conventional analytical laboratories and their magnitude is dependent on the level of control and efficiency of QC systems practised by individual laboratories. The disadvantages of conventional manual analytical laboratories can be summarized as follows:- 1. Labour-intensive which is costly especially when multiple shifts have to be used during 24/7 operations.

Jan 1, 2005

By M. Rahmanpour

"Mine planning is a multidisciplinary procedure that aims to guarantee the profitability of a mining operation in changing and uncertain conditions. Mine plans are normally classified as long-term, intermediate-term, and short-term plans, and many factors affect the preciseness of these plans and cause deviations in reaching the objectives. Commodity price is the heart of mine planning, but it has a changing and uncertain nature. Therefore, the determination of mine plans in the presence of uncertain mineral price is a challenge. A robust mine plan reduces the risk of early mine closure. A procedure is presented to determine the value at risk (VaR) in any possible mine planning alternative. VaR is considered together with downside risk and upside potential in order to select the most profitable and least risky plan. The model is tested on a small iron ore deposit. IntroductionMining projects are normally evaluated with the objective of maximizing economic value, as measured by the net present value (NPV). The aim of mine planning is to develop a yearly extraction plan that guides the mining operation to the highest NPV (Dagdelen, 2007; Yarmuch and Ortiz, 2011). This plan considers the technical constraints such as blending requirements, block sequencing, and pit slope (Caccetta and Hill 2003). Thus, the mine plan affects the economics and the payback period of mining operations.Mine planning is a procedure based on which the profitability of the mining operation is guaranteed in changing and uncertain conditions (McCarter, 1992). However, conventional mine planning ignores the volatility and uncertainty of future commodity prices and does not allow for managerial flexibility. It is common practice to assume a deterministic and constant commodity price through the mine life. The problem with this approach is that the commodity price is the heart of the mine planning procedure and governs the profitability and feasibility of the operation; thus ignoring price volatility will result in a sub-optimal mine plan."

Jan 1, 2016

By I. A. Mutemererwa

This paper investigates the role of vertical integration between chrome ore mines and ferrochromium smelters in the location of ferrochromium production capacity in South Africa and Zimbabwe. Vertical integration is important in understanding the increasing competitive position of these two countries as observations show that an increasingly larger share of the global market has been coming from integrated producers. The paper argues that the increased vertical integration between mines and smelters in South Africa and Zimbabwe has led to a lower cost of chrome ore as an input compared with other producers. Underlying this hypothesis is the basic tenet that, more likely than not, production will take place where the costs are lowest. The paper concentrates on high carbon ferrochromium (HCFC) production in market economy countries (MEC). Using an ordinary least squares model, the study tests the relationship between low chrome ore costs and vertical integration shows a statistically significant relationship. These findings partially support the view that the control of sources of chrome ore is a major source of competitiveness. Keywords: competitiveness, ferrochromium (ferrochrome), ordinary least squares, dummy variables, vertical integration, southern Africa.

Jan 1, 2000