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By H. Von Michaelis

The world is rapidly becoming more ?green? i.e. energy conscious. Since mining and mineral processing are massive energy users, the mining industry is seeking ways to reduce its energy footprint. In mining and mineral processing operations, energy is often the most expensive cost item. Comminution, i.e. grinding, is frequently the most energy-intensive step between mine and metal. High pressure grinding rolls (HPGR) are being installed in a rapidly growing number of ?hard rock? mineral processing operations. In the energy conscious cement industry, HPGR grinding has been standard practice for decades. HPGR is known to be energy-efficient; the question is how energy efficient? How can the energy efficiency of HPGR be enhanced? This paper reviews recent HPGR applications for the processing particularly of copper, gold, platinum, PGM-Ni-Cu and iron ores. HPGR technology is discussed with respect to energy efficiency. The harder the ore the greater the energy savings are likely to be. Typical energy savings of 10?20% can be expected when installing HPGR vs. a SAG mill. Wipf(2005) showed why conventional Bond Work index tests on HPGR product is likely to under-estimate the energy savings that can be achieved by installing HPGR. Energy efficiency of HPGR is, however, ore-specific. The biggest energy savings of HPGR tested thus far is 9.5 kWh/tonne claimed for Vista Gold?s Mt. Todd gold ore from Western Australia, a savings of over one-third of conventional SABC comminution energy. Several commercial scale iron-ore pellet feed plants install HPGR for fine-grinding of concentrate to increase the surface area of pellet feed in a manner that reduces overall energy consumption. Energy-consumption in comminution is, however, only part of the energy savings benefit story. HPGR typically also reduces the amount of steel lost through wear of mill liners and media. Marsden(2008) showed that when the energy that would have been consumed to produce the steel that is saved by applying HPGR is factored in, then the overall energy savings of HPGR is considerably greater. Johnson et al.(1988, 2005) tested HPGR in a flowsheet in which energy savings of around 50% can be expected if HPGR product screen oversize is recirculated to the HPGR. Innovative flowsheets have been proposed by Rule et al.(2008) and by Morley (2008) which are expected to result in significantly increased energy savings. HPGR applied in flowsheets in conjunction with coarse ore separation devices, e.g. ore sorting or DMS to remove barren waste from HPGR feed promises significantly greater energy efficiencies. Fine-grinding and ultra-fine grinding of ore or concentrates in conventional ball mills results in energy consumptions that increase exponentially with product fineness. Wipf (2009) presented a flowsheet in which he proposed the installation of HPGR ahead of the Aerosion ?Disintegrator? for ultra-fine grinding of ores and/or concentrates. This dry grinding arrangement is expected to achieve ap80 = 7 µm using up to 100 kWh/t less energy than could be achieved by wet ball milling. Using conventional comminution, an ore might require grinding to p80 = 45µm (? 325 mesh), for example, to liberate the valuable components, e.g. magnetite, from gangue, e.g. silica. Inter-particle comminution in HPGR may break some ores along grain boundaries thereby liberating valuable minerals from gangue at a much coarser particle sizes. Early magnetic separation rejection of silica gangue liberated from magnetite by HPGR at coarser grain sizes could further reduce downstream comminution energy consumption.

Jan 1, 2009

By A. Refahi

For predicting the energy consumption during the size-reduction process, the Bond approach is often used. In this work, the PFC3D discrete element method (DEM) software was employed to model the crushing behaviour of some rocks with different mechanical properties in a laboratory jaw crusher. FLAC3D software was adopted to analyze the stress distribution in the rocks. The rocks studied were modelled as granular assemblies in the shape of a sphere and/or a cube located between two jaws, and the work done by the jaws in the crusher was determined. Nine different types of rocks were studied and the energies consumed by the crusher were compared to those of the Bond comminution energy estimated from the Bond index. There is considerable difference between Bond crushing energy and work done by the jaw crusher for rocks. It appears that the Bond approach is not a suitable method for predicting single particle fracture energy done by the crusher. To verify the results obtained from DEM models, the fracture behaviour of the crushed rocks was examined and was compared to the PFC3D results. The tensile mode of fracturing is favourably modelled by the PFC3D software while the delamination mode cannot be well modelled by PFC3D software. Keywords: jaw crusher; discrete element method; crushing energy; Bond index

Jan 1, 2009

By K. Sinding

This paper discusses reasons for mining company mergers that have become the fashion, the role of the ?Juniors? and asks what the motives might really be. It examines changes in company concentration over the last 20 years in key mineral segments. Data at different stages of a project are examined to attempt to elucidate the role of the ?Juniors?. Areas for further research are suggested.

Jan 1, 2009

By J. A. Ryder

A high proportion of damaging rockbursts are thought to be underlain by seismic events that represent shear or rupture along planes of weakness (faults, joints, dyke contacts). Such events are controlled by shear stresses and friction properties along the plane. Excess shear stress (ESS) is a measure that can be evaluated numerically and that, in principle, can be used in an assessment of the possible magnitude and relative likelihood of seismic activity. Methods for the calculation of ESS in practical mining contexts, and for the estimation of the magnitudes of possible seismic event progressions, are briefly reviewed. The effects of variables such as depth, stoping width and, in particular, virgin horizontal stresses on general shear-type seismic hazards are investigated. Attempted back-analyses of two large rockbursts are described.

Jan 1, 1988

By M. Mabuza

Two Rivers Platinum Mine (TRP) is a 55:45 joint venture between African Rainbow Minerals and Impala Platinum, respectively. TRP is situated on the farm Dwarsrivier 372KT, in the southernsector of the eastern limb of the Bushveld Complex. Dwarsrivier is underlain by rock formations of the Critical Zone (Winterveld norite-anorthosite) and the Main Zone (Winnarshoek norite-anorthosite). Two economically significant PGE-bearing layers namely the Merensky Reef and the UG2chromitite are found within the upper Critical Zone. These are approximately 140 m vertically apart, separated by a series of barren norites and anorthosites. At Two Rivers Platinum, only theUG2 chromitite layer is currently being mined for PGEs. The UG2 sub-outcrops north/south along the Klein Dwarsrivier river valley with a very gentle dip to the west of 7º?10º. At Two Rivers the UG2 averages about 120 cm in thickness, overlain by a waste pyroxenite parting about 20 cm thick, above which is a leader seam about 20 cm in thickness. The mineable cut consists of the leader seam, the waste pyroxenite parting, the UG2chromitite layer including 25 cm of pegmatoidal pyroxenite footwall, below the UG2 reef to a minimum of 185 cm trackless mining cut. The mining method is a mechanized bord and pillar layout, which will yield a total of 185 000tons at full run of mine production from the underground UG2 mine.

Jan 1, 2006

By D. Rankin, H. J. Stucke, W. K. B. Loftus

SYNOPSIS Planning for the Finsch opencast mine is described with particular reference to the proposed stages of mining, the method used to determine the limits of surface waste rock stripping and the derivation of the waste rock mining rate. Actual mining practice is described and the possibility of installing a skipway into the open mine at a later date is discussed. In addition, the waste dumping policy is referred to: this includes the cutting of slots through the hill on the west side of the pipe to increase tramming speeds. The crushing, washing and recovery sections of the treatment plant are described together with the various changes being made to the circuit. The most important of these are the installation of X-ray sorters for the final recovery of + 7 mesh diamonds, and the vibrating grease belt for the recovery of - 7 mesh diamonds. INTRODUCTION The Finsch Mine, a subsidiary of De Beers Consolidated Mines, Limited, is situated approximately 90 miles west of Kimberley, and some two miles from the village of Lime Acres, in the Northern Cape. Lime Acres is a company village shared with the Northern Lime Company which operates a limestone quarry and works near the township. The mine is near the southern end of a well mineralized belt producing limestone, asbestos, diamonds, manganese and iron ore, and the whole area has developed rapidly in the last 20 years. Power for mining operations is drawn from the Electricity Supply Commission. The mine is conveniently close to the main Kimberley-Postmasburg railway line. Water is drawn from the Vaal River through a 57 mile State-owned pipeline at present temporarily operated by mine staff. DISCOVERY AND PROSPECTING OPERATIONS The diamondiferous orebody is situated on the farm Brits, which is State-owned ground that has been leased to the Company for the period of mining operations. There are indications of interest in the area by prospectors (Richter, de Bruin and others) over a period of some 30 years and the discovery would possibly have been made years earlier but for a law preventing prospecting for precious stones on State-owned land. Although the pipe formed a clear depression on the hill where it was situated, it was overlain by some 5 to 40 ft of banded ironstone rubble which was washed into the depression from the hillside above the pipe and obscured the deposit. In 1958, Mr Allister Thornton Fincham applied for, and was granted, the right to prospect for base minerals on the farm Brits. Asbestos is known to occur in the area and, initially, was Mr Fincham's primary interest. However, during the prospecting operations, garnets were discovered and it was realised that diamonds might be present. In 1960, when the Precious Stones Amendment Act was passed, a company

By R. Gurung, S. Asokan, Ch. V. G. K. Murty, R. Upadhyay

Tata Steel Limited which is Asia?s first and India?s largest integrated private sector steel company, as part of its vision to grow in related industries is also undertaking the Titania project. The project will involve mining, separation of ilmenite and other valuable minerals from the inland heavy mineral sands deposit in the Indian state of Tamil Nadu. The raw material will be beneficiated to synthetic rutile, titanium dioxide pigment and ultimately to titanium metal. The recently concluded feasibility study revealed that the deposit under consideration has 10.4%of total heavy mineral content and 15.2% slimes of the size below 63 µm, over an average sand thickness of 6.9 metres. The presence of about 15% slimes in ROM sand coupled with scarcity of water at the project site complicates the slimes handling/disposal system, requiring the development of an innovative, efficient and effective system for disposal of slimes. Mineral characteristics of slimes revealed the presence of kaolinite clay, which poses its own challenges in thickening/dewatering of slimes. This paper outlines the detailed studies conducted, including slime characterization, settling and thickening characteristics, and ge-technical studies to arrive at an efficient and effective slime handling/disposal system, with a view to plant saplings on the mined-out reclaimed land with species typically suitable to that environment.

Jan 1, 2007

By A. Hoogervorst

Cyanide is a key contributor to the efficiency of gold extraction. Public perceptions of cyanide are emotive and following some publicised incidents involving cyanide, the gold mining industry established a voluntary cyanide code for the manufacture, transport and use of cyanide in the production of gold. The paper describes the development of the code, its content and the third party auditing of the code as a means of establishing and maintaining benchmark standards. In adhering to the cyanide code requirements, there are overlaps with other management systems such as ISO 14001 and OHASA 18001 and the paper seeks to show how existing mine systems can readily accommodate cyanide code compliance and that operating and auditing the cyanide code can assist in the integration of mine heath, safety and environmental management systems.

Jan 1, 2009

By Y. H. Hatzor

ABSTRACT: A fully dynamic, two dimensional, stability analysis of a highly discontinuous rock slope is demonstrated in this paper. The studied rock slope is the upper terrace of King Herod’s Palace in Masada, situated on the western margins of the seismically active Dead Sea Rift. The dynamic deformation of the slope is calculated using a fully dynamic version of DDA in which time dependent acceleration is used as input. The analytically determined failure modes of critical keyblocks in the jointed rock slope are clearly predicted by DDA at the end of the dynamic calculation. It is found however that for realistic displacement estimates some amount of energy dissipation must be introduced into the otherwise fully elastic, un-damped, DDA formulation. Comparison of predicted damage with actual slope performance over historic time span window of 2000 years allows us to conclude that introduction of 2% kinetic damping should suffice for realistic damage predictions. This conclusion is in agreement with recent results of Tsesarsky, Hatzor and Sitar (2002) who compared displacements of a single block on an inclined plane subjected to dynamic loading obtained by DDA and by shaking table experiments. Using dynamic DDA it is shown that introduction of a simple rock bolting pattern completely stabilizes the slope. RÉSUMÉ : On présente dans cet article une analyse bidimensionnelle complète de la stabilité d’une pente rocheuse très fracturée. La pente rocheuse étudiée est la terrasse supérieure du Palais du roi Hérode à Massada, située sur la rive Ouest du Rift sismiquement actif de la Mer Morte. La pente est constituée de blocs de dolomite raide présentant une stratification sub-horizontale et des joints sub-verticaux. La déformation dynamique de la pente est calculée en utilisant une version entièrement dynamique de l’Analyse de Déformation Discontinue (DDA) où l’accélération dépendant du temps est utilisée comme donnée. Les modes de rupture déterminés analytiquement des blocs clés dans la pente rocheuse fracturée sont clairement prévus par l’approche DDA à la fin du calcul dynamique. On trouve cependant, que pour obtenir des estimations réalistes du déplacement, il faut introduire un facteur de dissipation énergétique sans lequel la formulation DDA serait totalement élastique et sans amortissement. En comparant l’endommagement prévu avec les caractéristiques de la pente sur une période historique de 2000 ans, nous pouvons conclure que l’introduction d’un amortissement cinématique de 2% suffit pour obtenir de prévisions réalistes. Cette conclusion est conforme aux résultats récents de Tsesarsky, Hatzor and Sitar (2002) qui ont comparé les déplacements d’un bloc isolé sur un plan incliné sous chargement dynamique obtenus avec l’analyse DDA et à partir d’essais sur table vibrante. ZUSAMMENFASSUNG: En utilisant une modélisation DDA dynamique on montre que l’introduction d’un système simple de boulonnage stabilise la pente.In dieser Veroeffentlichung wird eine vollstaendig dynamische, zweidimensionale Stabilitaetsanalyse eines hoechst diskontinuierlichen Steinhangs dargestellt. Der untersuchte Hang ist die obere Terrasse des Herodespalastes in Massada, welche in den westlichen Randgebieten des seismisch aktiven Toten Meer Grabens liegt.Die dynamische Deformation des Berghangs wird mit Hilfe einer vollstaendig dynamischen DDA-Version berechnet, in welcher als Input die zeitabhaengige Beschleunigung eingegeben wird. Die analytisch bestimmten Versagensarten kritischer Schluesselbloecke in diesem zerkluefteten Steinhang werden durch Anwendung von DDA am Ende der dynamischen Berechnung klar vorausgesagt. Es zeigt sich jedoch, dass fuer realistische Dislozierungs-Abschaetzungen ein gewisses Mass an Energieverlust in der sonst vollstaendig elastischen, ungedaempften DDA-Fassung einbezogen werden muss. Der Vergleich des vorhergesagten Schadens mit dem aktuellen Verhalten des Berghangs waehrend einer historischen Zeitspanne von 2000 Jahren erlaubt uns zu schliessen, dass ein Zusatz von 2% kinetischer Daempfung fuer eine realistische Vorhersage des Schadens ausreichen sollte. Diese Schlussfolgerung steht im Einvernehmen mit neuen Ergebnissen von Tsesarsky, Hatzor und Sitar (2002), welche die Dislozierung eines einzelnen Blocks auf geneigter Ebene unter dynamischer Belastung – unter Anwendung von DDA und “shaking table”-Versuchen – verglichen. Mit Hilfe der dynamischen DDA wird gezeigt, dass der Steinhang durch Anwendung einer einfachen Steinschraubenstruktur vollkommen stabilisiert werden kann.

Jan 1, 2003

By B. R. Broekman, D. W. Penman

SYNOPSIS This paper traces the developments in flotation practice at Anglovaal's Prieska Copper Mine, with em¬phasis on the depression/deactivation of lead and zinc. A depressant system was devised to accept feed material that was once regarded as untreatable. Of particular interest is the long-term downward trend of concentrator working costs in real terms. This trend follows the classic Experience Curve, which relates production costs to cumulative experience. It is felt that the experience-curve concept has important implications for the mining industry in general.

Jan 1, 1991

By H. D. Mtegha

The Southern African Development Community (SADC) aims to harmonize mineral policies and regulatory regimes in the minerals sector. This paper provides a review of the progress made towards harmonization of mineral regimes in the region. It singles out only the mining fiscal environment, as this is normally one of the key issues of interest to potential investors as well as the host state. Indications are that the region is slowly progressing towards a more harmonized approach, and there is evidence that the ?race to the bottom? has been prevented, which is the basis for an integrated mineral sector that the region aspires to.

Jan 1, 2011

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

Specifile compendium' 80. Mining and engineering. (Obtainable from Specifile, P.O. Box 7870, Johannesburg 2000.) Reviewer: J. D. Austin SKF Steel. Plasmasrnelt information brochure. Hofors (Sweden), SKF Steel, 1980. Reviewer: N. A. Barcza POTENTIAL VALUE OF COLLIERY DISCARD MATERIAL By R B MacGillivray, Pr Eng, BSc(Eng) Rand, C Eng (Fellow) Preprints of perhaps the most thought-provoking of the papers delivered at the Witbank Coal Colloquium - 'Potential value of colliery discard material' by Roy MacGillivray of Rand Mines - are available on request from the South African Institute of Mining and Metallurgy. Mr MacGillivray outlines an imaginative plan to utilize the annual nine million tons of colliery discard in the WitbankBethal areas. Two SAIMM colloquia The South African Institute of Mining and Metallurgy (SAIMM) is organizing two one-day colloquia in the State Pavilion, Milner Park showgrounds, Johannesburg, to coincide with the Electra Mining Exhibition on 16th and 17th September. Over a million rands worth of equipment will be on display, the Electra Mining Exhibition being rated among the four or five largest in the world. The 1978 Electra Mining Exhibition was attended by 24 000 visitors. "Project Management in the Metallurgical Industry", "Mine Fires" APCOM International Conference by H. W. GLEN The 17th APCOM Conference (under the auspices of the Council for the Application of Computers and Mathematics in the Mineral Industries) was to have been held in Moscow during the last week in October. South Africans have always given enthusiastic support to the APCOM series of meetings, since their inception in 1961. The conference was held in the Republic in 1972.

Jan 1, 1980

By B. Sergeant

Any study of the contentious subject of nationalization can ultimately be reduced to a sombre analysis of the simultaneous, and very different, interests of capital, labour, and government. Each of these interests attempts to maximize its objectives, subject to checks and balances provided, in an ideal system, by a country's executive government, legislature, and judiciary. Where even one of the three interests goes out of control, the consequences can be disastrous. The case histories show that when this occurs, the most common culprit is government, or its proxy, such as a dictator. At the other extreme, the case studies indicate that the optimum outcome occurs when capital, labour, and government are 'ring fenced' from each other: each enjoys its rights, but is also subject to duties. 'Conflicts of interest' between the three entities are ideally avoided to the maximum possible extent. The case studies include several salient instances from both the DRC (Gécamines, La Générale des Carrières et des Mines) and Zambia, along with Ghana and Chile. Further instances are examined in South Africa (gold), India (Coal of India), Brazil (Petrobras), Venezuela (Petróleos de Venezuela), Sweden (Luossavaara-Kiirunavaara Aktiebolag), Mauritania (Société Nationale Industrielle et Minière), Norway (Norsk Hydro), Botswana (Debswana), and Namibia (Namdeb). The article concludes broadly that South Africa's minerals sector is not ready for nationalization.

Jan 1, 2013

Performance testing is often used by project owners and financiers to provide protection from, or assessment of, technical aspects of project design, procurement, construction and commissioning. The performance tests can range from comprehensive performance warranties relating to process performance and production in the case of lump sum turn key (LSTK) projects to less onerous demonstration tests for cost reimbursable contracts. This paper will discuss performance testing from both the contractor's and owner's perspectives and focuses on: ? when performance tests are required, ? what type of performance test/warranty is optimum for each type of project, and ? how project performance should be evaluated. The requirement for performance testing can be driven by the project financiers, particularly in the case of smaller resource development companies. In such cases, differentiation between owner's risk and contractor's risk can become contentious. At the other end of the spectrum, larger mining houses may choose to heavily influence the engineering and design process with the contractor supplying services on a reimbursable basis. In that case, the performance testing process is often limited to demonstration tests that validate performance for the owner's corporate governance requirements. This paper was prepared due to the lack of published benchmarking of performance testing and the resultant differences in expectations between a contractor and a project owner that often surface late in the contract negotiation process. The paper provides a checklist of requirements for both the owner and the contractor that may be used to provide `common purpose' early in the contract negotiation process.

Jan 1, 2007

By Piotr M. Kapias

Keywords: extraction, lead refining, Pb-Tl solutions, PbCl2-TlCl solutions. The theoretical part of the paper presents an analysis of the conditions of Tl extraction from Pb using different extractants and determines the activity coefficients in liquid solutions of Pb-Tl and PbCl2-TlCl. The dependence of the solution activity coefficients upon the composition and temperature is presented in the form of Krupkowski and Krupkowski-Fitzner equations. An analysis and evaluation were made of the influence of the methods of PbCl2 introduction into a Pb-Tl solution upon the efficiency of the Tl extraction process under thermodynamic equilibrium conditions. The analysis made it possible to formulate relevant equations describing the dynamics of the process of Tl extraction from Pb under stirring conditions as well as under the extractant injection into the liquid Pb-Tl solution conditions. In the part concerning experimental work, results are given for tests on the Tl extraction process from Pb-Tl liquid solutions of initial Tl content of approximately 0.05% mass using PbCl2 or, alternatively, Cl2(g) conducted in laboratorial scale. The tests made it possible to establish the influence of time, temperature, mass and the method of introducing the extractants into the liquid upon the level of Tl extraction from a Pb-Tl solution. Labels used in the text. WT1m - TI content in metallic phase, % mass WT1s - TI content in chloride phase, % mass wpTlm - TI content in metallic phase in initial state, % mass W°Tlm - TI content in metallic phase in equilibrium conditions, % mass m°m - initial mass in metallic phase mm - mass in metallic phase mPbC12 - lead chloride mass fed to the system MPbC12-TIC1 - mass in chloride phase MPb - lead atomic mass, g/mole MT1 - thallium atomic mass, g/mole K - Nernst distribution coefficient Xi - mole friction of solution component X°PbC12 - mole friction of PbC12 in saturated solution X°T1C1 - mole friction of T1C1 in saturated solution T - temperature, K R - gas constant, J/(mole K) k - kinetic equation constant, 1/(%-min.) ?i - solution component activity coefficient e - extraction rate, %

Jan 1, 2008

By H. H. McGregor

Introductory remarks by author When Mr R. C. J. Goode suggested preparation of a paper in the area of manpower utilization in South Africa, I was, while keen to accept his invitation, somewhat hesitant for two reasons. Firstly, I recognized the great difficulty of making a factual contribution, because of the lack of really relevant statistical information available, the fact that much of it is out of date, and the difficulty of researching and co-ordinating it and of evaluating a statistically sound resultant viewpoint. Experience in the actual preparation of this paper has done nothing to change my view in this respect. Secondly, it is obvious that a paper presented to a meeting of this Institute, by a member of it, would be expected to devote considerable attention to the subject in the mining industry. I am not directly employed by the mining industry, although my company has carried out extensive assignments for various sectors of it both in this country and in other parts of the world, since the 1939-45 war. I am more conscious than most of the tremendous technical and managerial skills at the disposal of the industry in this country, and consequently am equally conscious of the hazards of publishing facts and figures which might be taken to indicate any criticism of performance. I am aware that some of the information that I am about to present may indeed generate comment, and possibly even critical comment. I would like to be regarded therefore in presenting this information, as a member of the group, rather than an external critic. Under these circumstances, comment can only be constructive, and this is my earnest hope. The contribution of my paper, if contribution there is, will I hope be in the area of assessing labour productivity in mining, and in secondary industry in such a way that the performance of each against its own past results is comparable. This task has not for the present been to my knowledge attempted, and in advance I wish to take out authors' insurance against legitimate criticism from professional economists and others, by stating that I am well aware of possible short-comings in the arguments. Nevertheless I believe that under the circumstances I have, with the important assistance of several people, been able to take the subject further than has been the case in the past. Finally, I have related productivity in the mining industry and in secondary industry to a target of productivity in the Republic of South Africa. I was fortunate recently in being able to attend a series of lectures by a prominent economist in America. He introduced his subject by calling it 'A broad survey of macro-economics'. Perhaps I might be permitted to describe my paper, in the same idiom, as 'The macro-management of labour'.

Jan 6, 1970

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 Z. Szczepanik, D. Milne, K. Kostakis

Abstract This paper presents the results of a series of creep tests performed on a total of nine samples of Lac du Bonnet granite from the Underground Research Laboratory near Pinawa, Canada. Each of the nine samples were subjected to stresses in excess of 80% of the average uniaxial compressive strength of the granite and were maintained at that level of constant loading for periods of time ranging between a few minutes and several months. Acoustic emission was recorded in order to monitor the development and accumulation of brittle microfracture damage in the samples throughout the long-term loading. According to previously published theoretical predictions and field results, as well as similar experimental results of creep tests in granite, samples should fail when loaded to 70% of their UCS for an extended period of time. Six of the samples did not fail when subjected to stresses in excess of 80% of their UCS over periods of several months and were subsequently subjected to uniaxial compression to failure. The average strength of the samples that had previously been subjected to long-term loading were comparable to the average published strength of this rock. Three of the nine samples had increased end confinement and these three samples failed under long term loading. Résumé Cet article présente les résultats d'une série d'essais de fluage de roche exécutés sur neuf échantillons de granite de Lac du Bonnet, du laboratoire souterrain de recherches près de Pinawa, Canada. Chacun des neuf échantillons a été alors soumis aux charges au-dessus de 80% de la résistance à la UCS moyenne du granit et a été maintenu à ce niveau du chargement constant pendant des périodes s'étendant entre quelques minutes et plusieurs mois. L'émission acoustique a été enregistrée pendant les essais afin d'obtenir des indications des dommages pendant le chargement à long terme. Selon des résultats théoriques précédemment édités et les résultats expérimentaux semblables des essais à long terme en granite, échantillons devrait échouer si chargé à 70% de leur UCS pendant une période prolongée. Six des échantillons n'ont pas cassé quant ils ont été soumis aux charges au-dessus de 80% de leur UCS et ont été plus tard soumis à la compression uniaxiale à la rupture. La force moyenne des échantillons qui avaient été précédemment soumis au chargement à long terme étaient comparable à la force éditée moyenne de cette roche. Trois des neuf échantillons avaient augmenté le confinement de fin et ces trois échantillons ont cassé sous le chargement à long terme. Zusammenfassung Dieser Artikel beschreibt die Resultate von Kriechversuchen, die an neun Proben aus dem Lac du Bonnet Granit des "Underground Research Laboratory" bei Pinawa in Kanada durchgeführt wurden. Jede der neun Proben wurde Drücken unterworfen, die mehr als 80% der einaxialen Druckfestigkeit des Granites entsprechen. Diese Drücke wurden für verschiedene Zeitspannen von wenigen Minuten bis zu einigen Monaten auf einem konstanten Niveau gehalten. Während der gesamten Langzeitbelastung wurden akustische Emissionen aufgezeichnet, um die Entwicklung und gesamthafte Beschädigung der Proben durch Sprödbruch aufzuzeichnen. Entsprechend bisher veröffentlichter theoretischer Vorhersagen, Feldversuchen und auch experimentellen Resultaten von Kriechversuchen an Granitproben wäre ein Versagen der Proben zu erwarten gewesen, wenn sie über längere Zeit einer Last von 70% ihrer einaxialen Druckfestigkeit unterworfen werden. Wider Erwarten trat bei sechs der Proben kein Versagen ein, als sie mit über 80% ihrer einaxialen Druckfestigkeit über mehrere Monate belastet wurden; daher wurden sie im Anschluss bei einaxialer Kompression zum Versagen gebracht. Die mittleren Festigkeiten der im Langzeittest verwendeten Proben sind vergleichbar mit den normalerweise für diesen Gesteinstyp angegebenen Festigkeiten. Drei der neun Proben versagten unter der Langzeitbelastung; diese drei Proben hatten eine erhöhte Endflächenreibung.

Jan 1, 2003

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

Jan 1, 2007