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By C. Birch

"A mineral resource royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In South Africa, this payment is made to the State as holder of the mineral rights (The Mineral and Petroleum Resources Royalty Act of 2008). The principle purpose of this research paper is to identify if the State is benefitting from the mineral resource royalty by considering its impact on seven individual Witwatersrand gold mines.For this study, a simple financial optimiser model was created in Microsoft Excel that links the ore flow, block listing and the cash flow (excluding or including the cost of the mineral resource royalty). Mixed integer linear programing (the Excel Solver function) is utilised to optimise either profit or NPV (at 9% and 12%) by adjusting the cut-off grade.The impact on each of the seven mines mine was different but overall R7.9 billion is estimated to be paid in mineral resource royalty over their expected remaining lives. Due to the cost of the mineral resource royalty and increasing the cut-off grades, the total revenue decreases by R10 billion. A significant portion of this lost revenue would have been paid to the State in the forms of other taxation including company income tax which decreases by R2.8 billion. It is recommended that an industry wide investigation be conducted to determine if the resource royalty is adding to the State’s revenue, or destroying value including premature job losses. IntroductionTaxation of mining companies has become a very topical subject in the context of the postapartheid South African economy. There have been increasing calls for equitable re-distribution of mineral asset wealth for the benefit of all South African citizens and not just to an elite few. As part of the Mineral and Petroleum Resources Development Act (MRDPA) of 2002, the Mineral and Petroleum Resources Royalty Act of 2008 was introduced and came into effect in 2010 (South African Revenue Services, 2008). A mineral royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In the case where the holder of the mineral right is the State, then this payment is made to the State (Cawood, 1999). Studies on the potential impact of the mineral resource royalty on the minerals industry have been conducted during the formulation of the Act and subesquently. These include Cawood and Macfarlane (2003), who suggested a cap of no more than 3% (Cawood and Macfarlane, 2003), as well as Cawood (2011), who predicted rising cut-off grades and thus reducing mineral reserves. In 2013, Grobler completed a Masters in the Faculty of Economic and Management Sciences at the University of Pretoria and concluded that the impact of the mineral resource royalty on the economy is positive. She stated that the royalty has caused operating expenses to increase, but this does not appear to be significant. Furthermore, she stated that the royalty has not affected the way the mining industry operates (Grobler, 2014)."

Jan 1, 2016

By G. H. Lind

This paper discusses the traditional costing approach currently used in the underground coal mining industry. Activity Based Costing (ABC) is identified as being a potentially more effective manner in which to cost underground coal mining systems. With the use of a costing framework developed by the author incorporating new thinking to eliminate the shortcomings identified in the traditional costing approach, a comparison of two types of underground coal mining systems, viz. continuous miner and longwall, is conducted. It is found that under certain criteria, in all cases, irrespective of the way in which the systems are costed, the continuous miner system is currently the better investment. It is also observed that when a system is costed using ABC that better investment decisions result when compared to costing the same system using traditional costing techniques. It is further seen that traditional costing techniques tend to overestimate the total costs of a mining system. This paper shows one application of ABC that can be incorporated as a management tool.

Jan 1, 2001

Abrasivity and wear resistance are not intrinsic properties of materials, but rather parameters describing the interaction between the wear part and the material exerting the wearing action. Moreover, wear or, at least, that part of the wear which is due to the cumulative effect of minute scratches, is linked to the hardness disparity concept. Abrasivity, in this context, is a relative concept, pertaining to a metal-rock pair, rather than to a rock. Based on this assumption, a methodology has been developed and checked against actual cases, enabling description of the abrasiveness of a rock or the abrasion resistance of a metal through the ratio of comparable quantitative indicators. The paper describes the methods and provides examples of applications to practical cases (namely: rock cutting, excavation by means of tunnel boring machines (TBMs), rock crushing, and hydro-mill cutting).

Jan 1, 2012

By C. Kloppers

The aim of this investigation was to reduce the cost of primary steel de-oxidation by substitution of aluminium primary de-oxidation with a practice that uses carbon. The cost of carbon is four times lower than that of aluminium. The application of carbon would directly result in raw material cost savings. Investigations were conducted at Iscor?s Newcastle steel plant on various steel grades. Specific production aspects were emphasized to ensure that the cost savings accrued would not create secondary expenses. These production aspects entailed: ?Yields on de-oxidation elements ?De-oxidation capabilities ?Alloying yields (Mn and Si) ?Carbon-pickup ?Nitrogen-pickup ?Temperature loss during tap ?Steel cleanliness ?Slag morphology. This project proved that carbon de-oxidation, apart from reducing de-oxidation raw material cost due to cheaper raw materials being used and lower consumption rates, resulted in steel that is cleaner and has lower nitrogen concentrations. Carbon primary de-oxidation has been implemented at Iscor?s Newcastle plant on a large range of steel grades, ranging from ultra-high carbon (> 0.60% C) to ultra-low carbon (< 0.03% C) grades. A net saving of between R100 000 and R200 000 per month was achieved.

Jan 1, 2001

Abrasivity and wear resistance are not intrinsic properties of materials, but rather parameters describing the interaction between the wear part and the material exerting the wearing action. Moreover, wear or, at least, that part of the wear which is due to the cumulative effect of minute scratches, is linked to the hardness disparity concept. Abrasivity, in this context, is a relative concept, pertaining to a metal-rock pair, rather than to a rock. Based on this assumption, a methodology has been developed and checked against actual cases, enabling description of the abrasiveness of arock or the abrasion resistance of a metal through the ratio of comparable quantitative indicators. The paper describes the methods and provides examples of applications to practical cases(namely: rock cutting, excavation by means of tunnel boring machines (TBMs), rock crushing, and hydro-mill cutting).

Jan 1, 2012

By A. Z. Toper

This is a sampling of the papers presented at the conference, the proceedings can be bought from the SAIMM An extensive research programme to address the issue of rockburst control has been undertaken over a number of years. This paper discusses the development of preconditioning techniques to control face bursts, for safer mining in seismically hazardous areas. Preconditioning involves regularly setting off carefully tailored blasts in the fractured rock immediately ahead of a mining face, so as to encourage slip on pre-existing fractures, in order not to allow the accumulation of high strain energy density in the rock mass. Two different preconditioning techniques have been developed, namely face-perpendicular preconditioning and face-parallel preconditioning. Both have prevented face bursting in areas to which they have been applied, even though several large seismic events have occurred close to the faces in some areas. In addition, minimal overall damage was observed in the preconditioned panels following these events, compared to similarly exposed unpreconditioned panels. Preconditioning has also provided some protection to the face area from distant events, through the capacity of the preconditioned ground to absorb energy. An improvement in hangingwall stability and productivity has also been noted in preconditioned areas. In order to determine the optimum blast parameters for achieving the most effective preconditioning, an extensive optimization study was carried out for the face-perpendicular preconditioning technique. While optimum values for parameters such as hole length, diameter and spacing were determined, it was ultimately concluded that the differences in results obtained by varying the preconditioning parameters were less significant than the clear positive differences observed when comparing preconditioned areas with non-preconditioned areas.

Jan 1, 2000

By S. O. Bada

Fine phosphate feed is considered to be slime and normally disposed of as a discard in settling ponds or dumped as landfill. The purpose of this research was to establish whether commercially acceptable qualities and yields could be obtained from this material using dry separation methods. The results obtained from the electrostatic separation of <105 µm phosphate ore are presented. An existing separator was upgraded in order to improve on product and flotation concentrate recovery, to test different mineral, and to reduce particle residence time between the charging chamber and the separating zone of the separator. The operating conditions were varied according to the charges imparted to the particles in the electric field, and according to other device parameters. Parameters such as splitter position, charge reversal, rotation speed, charging voltage and separating voltage. The <105 µm phosphate feed was concentrated under both triboelectrification and inductive charging. The use of inductive charging and charge reversal resulted in a significant increase in grade for <105 µm phosphate feed, with the P205 grade increasing from about 12 per cent to 20.50 per cent, and a recovery of 26.30 per cent under a single stage of separation. It was found that better separation was achieved at rotation speed of 6000 r/min, -8 kV charging voltage, and 25 kV separating voltage.

Jan 1, 2012

By D. J. Burger

This paper will highlight the system components of a successful underground mining automation project recently launched at DeBeers Finsch Mine. It will also show that integration of short-term mine planning with other upstream and downstream mining processes in the extraction of kimberlite ore from a block cave is not just critical to the future sustainability of this underground mining operation but also for profitability and cost-effectiveness. This paper will discuss the information data flow required from the mine-planning process through to production for underground block cave mining. The benefits associated with this type of integrated mine planning and automation system will be highlighted.

Jan 1, 2006

Council for 2001/2002 President A.A.B. Douglas President-elect S.J. Ramokgopa Vice-presidents Senior F.M.G. Egerton Junior Prof. T.R. Stacey Immediate Past-president Dr L.A. Cramer Honorary Treasurer J.A. Cruise

Jan 1, 2002

By W. J. Errington

The Isasmelt process was developed at Mount Isa Mines Limited in Queensland, Australia in collaboration with CSIRO, the Australian Government research organisation. Originally developed for primary lead smelting, culminating in the construction of a 60,000 tonnes per annum lead smelter at Mount Isa, this technology now also provides a major part of the current 200,000 tonnes per annum copper smelting capacity at Mount Isa. A programme is now in place to expand copper production to 250,000 tonnes per annum. The technology has also been applied to secondary lead smelting at Britannia Refined Metals, a MIM subsidiary company, where a 30,000 tonnes per annum lead plant based on battery scrap feed has been operating since 1991. Mount Isa Mines Limited decided to license the technology in1988, and copper smelting plants utilising Isasmelt technology are now operated by Cyprus Miami Mining Corporation in the USA and by Sterlite Industries in India. In addition, the technology was adopted by AGIP for smelting copper/nickel concentrates in Australia. Union Miniere are currently constructing an Isasmelt furnace to smelt and convert copper-containing materials at their plant at Hoboken in Belgium. This paper discusses these developments and also some likely future developments which include the application of the technology for continuous copper and nickel converting and applications in the treatment of zinc-containing residues.

Jan 1, 1997

By L. G. Stolarczyk, J. Duncan

"SynopsisLong before the environmental movement, coal miners were suffering from occupational diseases that became apparent in the later years of service, and especially during the retirement years. Chronic exposure to micro-fine dust in the respirable range (‘float’ dust) causes various lung diseases, referred to as coal mine dust lung disease. In the USA alone, 76 000 miners have died of coal mine dust lung disease since early legislation recognized the issue in 1969. Researchers believe that reducing float dust exposure limits alone will not reverse the increasing incidence of coal mine dust lung disease seen in the current generation of miners. Trace and radioactive metals are concentrated in the thin boundary layers of the coal seam (Roberts, 2013), and hence float dust includes silica and toxic trace metals. The production and quality of coal is also significantly impacted by the presence of these contaminants in the coal. In the combustion process, the trace metals are oxidized and become incorporated in the fly ash and flue gas. Since they are extremely water-soluble, they represent a significant danger to health and the environment. Coal preparation plants and power stations need to mitigate these contaminants as far as is practical, but the simple fact is that most contaminants should have been left un-mined.This paper describes an innovative coal-cutting solution to the longstanding technology gap in mining – the ability to measure uncut coal layer thickness to the boundary rock layer. Because of constant changes in geology, seam thickness, and seam undulation, the horizon sensor must be located in the bit-block of the rotating cutter drum of the mining machine. Contaminants in ROM coal must be minimized at the source – that is, at the rock/coal crushing cone directly under the bit-tips of the cutting drum. Bittip distances to the rock boundary layer must be automatically controlled in real time when mining in a complex and undulating coal bed. Horizon sensing (HS) technology enables the mining machine’s cutting picks to stop at a specified distance from undulating horizons of the boundary rock. The thin contaminated coal layer can be left in situ, significantly reducing the toxicity of the float dust. Preventing the metal picks from striking quartz-containing boundary rock also reduces the occurrence of methane ignitions. HS technology equipped with pick force vector sensing can allow optimization of the cutting pick lacing pattern for minimum coal and rock crushing, thereby reducing float dust. This technology may enable the mining industry to convert from automated machine control to autonomous during coal cutting and loading."

Jan 1, 2015

A number of impending and actual pit wall failures have been observed and documented, which have been interpreted to initiate on newly generated structural features. This infers failure through intact rock. Failure mechanisms have been postulated resulting from circumferential stress, extensional strain and brittle flexure. These will be discussed in the context of the failures and the associated monitoring. The implications of failure initiating on ?unknown? features has a significant impact for deep open pit mines where designs are based on the expected structural regime. Being able to anticipate such failures is important for design. Equally important is management of such changes as they arise. In this context, monitoring using high resolution microseismic techniques will be discussed as a means of providing early warning of such failures.

Jan 1, 2006

By O. F. Oxtoby, J. E. Olsen, M. W. Erwee, Q. G. Reynolds

"The extraction of molten products and wastes through smelting furnace tap-holes during the tapping process is a complex procedure involving many coupled thermophysical effects. Insight into the fluid flow behaviour in such systems can be gained by using computational mechanics tools to build highfidelity models of the fluid flow and other relevant physics. Previous work using such models indicates that the nature of the flow in the tap-hole, as well as operational parameters such as the tapping flow rate, depends strongly on the properties of the material being tapped and the geometry of the tap-hole channel. Additional complications arise when multiple fluid phases (for example, slag and metal) are present simultaneously, when porous coke beds hinder flow to the tap-hole entrance, and when the geometry of the tap-hole changes over time due to cycles of wear and repair. In the present work, challenges with the coupling of phenomena such as multiphase flow and porosity into computational fluid dynamics methods for tap-hole modelling are discussed in the context of electric furnaces used for ferromanganese production. Qualitative and quantitative results of computational models of flow through tap-holes are presented and compared as a function of material parameters to determine sensitivity effects, and in response to operational parameters to determine typical process behaviour over the duration of a tap. IntroductionPyrometallurgical production using electric furnaces accounts for substantial portion of the world supply of ferroalloys and other strategic materials (Degel et al., 2015). A range of different furnace designs may be used depending on the metallurgical process, with circular three-electrode submerged arc furnaces (SAFs) powered by alternating current being the most common for commodities such as ferromanganese and silicomanganese (Olsen, Tangstad, and Lindstad, 2007).As shown in Figure 1, manganese furnaces typically operate with a deep charge consisting of an upper layer of loose burden (onto the upper surface of which is fed solid raw material), a molten slag layer partially or completely filled with unreacted carbonaceous reductant (generally metallurgical coke), and a molten metal layer which settles to the bottom of the furnace due to its high density. The solid particles present in the slag and burden layers form porous beds which hinder the fluid flow of molten process material and gases inside the furnace (Olsen, Tangstad, and Lindstad, 2007).In order to remove material from the furnace during normal operations, a single tap-hole is built into the sidewall of the vessel near to the level of the hearth. Tapping involves removing both slag and metal phases through the same tap-hole channel, which makes tap-hole design, operation, and maintenance particularly complex. In the case of processes such as ferromanganese, which operate with no external gas injection or open arcs present at the furnace electrodes, flow of material out of the tap-hole is driven primarily by the hydrostatic pressure generated by the weight of the solid and liquid phases above the tap-hole."

Jun 1, 2019

Milling circuits are known to be difficult to control. In order to address these difficulties, it was decided to develop and test a model predictive controller (MPC) for a milling circuit. A milling simulator was written using Microsoft Visual C++ and used to design and test the MPC controller. Due to the large number of tuning parameters in a controller of this type, an optimizing algorithm was written that automatically tunes the controller. Good, robust control was obtained when the controller was tuned using this algorithm. Control was further improved by combining feedback and feed forward control and by using quadratic programming in the MPC algorithm. The movement of the manipulated variables was reduced by using a novel technique that allows the controlled variable to vary within a specified region around the set point. An optimiser controller was also successfully implemented to control the circuit at its maximum throughput.

Jan 1, 2000

By K. Liddell

Current practice for the recovery of platinum group metals (PGM) from flotation concentrates is by energy-intensive smelting processes followed by separation and refining of the base and precious metals. Energy costs are rapidly increasing in South Africa and this trend is forecast to continue in future years. Moreover, the smelting operations are highly susceptible to deleterious constituents, particularly chromite; and the increasing tonnages of UG2 chromititic ore being mined results in an increasing chromite content of smelter feeds. Hence there is a substantial incentive to assess and implement alternative processes to smelting for the treatment of PGM concentrates. The Kell process is a patented hydrometallurgical alternative to smelting that is totally insensitive to the chromite content of the feed concentrate and comprises three commercially proven unit operations (pressure oxidation leaching of base metals and sulfur, roasting and chlorination of precious metals). The Kell process provides the opportunity for existing and new PGM producers to significantly reduce their energy consumption, and in particular their consumption of electricity, by removing the need to smelt PGM concentrates. Energy costs, greenhouse gas emissions and installed power requirements are also much reduced. Compared with smelting and refining these reductions are calculated as: ? Total energy consumption-50% reduction ? Electrical energy consumption-84% reduction ? Energy consumption costs-76% reduction ? C02 emissions-70% reduction ? Installed power requirement 92% reduction. The data obtained from simple laboratory batch amenability testing can be readily applied to the Simulus mass and energy balance simulation procedure to determine energy and reagent consumptions, equipment selection and process optimization. The applicability of Kell to treating low-grade &apos;dirty&apos; concentrates with high UG2 content as well as to polymetallic concentrates containing base metals as the major payable metals with subordinate PGM means that these savings can also be expected when the process is used for treating a range of concentrate types and grades. Keywords PGM,UG2, Merensky, smelting, chromite, electricity, hydrometallurgy, Kell Process, Eskom.

Jan 1, 2011

By M. van Schoor

Coal remains South Africa?s most abundant and cheapest source of energy, and there is an ever-increasing necessity for optimal and safe extraction of the remaining reserves. Increasing focus on cost-effective mining and zero harm to the environment and miners has resulted in a shift in attitude towards the application of geophysics in local coal mining and exploration. Furthermore, technological advances have contributed to geophysics being embraced more readily by the coal mining industry, compared to a decade or two ago. Predictably, the growing interest in geophysical technologies has also created a need for education and training in the basic principles and application of geophysical methods, as local coal mining companies generally do not have in-house geophysicists. Consequently, the Coaltech Research Organisation?s Geology and Geophysics working group forum compiled a textbook aimed at addressing this need: to produce a guide for applying geophysics to coal mining problems in South Africa. The target audience for such a book would be coal geologists, mine surveyors, mine planners, and other mining staff with limited or no geophysics background. This paper provides a very brief overview of the book by summarizing key sections and selected examples. In doing so, the value of geophysics to solving a range of coal mining and exploration problems is highlighted.

Jan 1, 2014

By X. Yu

Although many investigations of the deformation behaviour of rocks have been carried out, most of them are carried out in compression. In all rock engineering practice it is usually assumed that the deformation of rocks in tension is the same as that in compression. However, data from numerous researchers have shown that this assumption is not correct for some rocks. A new loading frame for testing rocks in compression and direct tension has recently been developed by the authors, with the capacity to conduct both compression and tensile tests on the same rock sample. The results obtained show that the ratios between the average Young?s modulus in compression (ECA) and in direct tension (ETA) are 1, 1.16, 2 and 6 respectively in four rock types tested. For Poisson?s ratios, analogous relations were obtained. It was observed that, in all cases, the tangent Young?s modulus intension reduces with an increase in the applied tensile stress, while the behaviour of Poisson?s ratio is similar, but shows greater variability. The difference between the Young?s modulus of rocks in tension and that in compression could lead, large errors in calculating induced stresses around underground openings, as well as in determining the Brazilian tensile strength of rocks. This may have a significant influence in rock engineering and therefore more investigation is necessary into the tensile deformation behaviour of rocks and its influence.

Jan 1, 2005

By A. K. Singh

Between the main fan and the coalface in a mine a lot of air is lost through leakage at stoppings, doors, air-crossing etc. so that a much larger quantity of air has to be circulated by the fan in order that the stipulated quantity of air reaches the face. Stoppings are of vital importance not only for effective ventilation of underground mines but also for isolation of areas affected by fire or susceptible to spontaneous heating. Generally, isolation stoppings are made of brick in cement mortar. If the area is far from the pit or unapproachable, it is very difficult and sometimes impossible to build these stoppings. To overcome these difficulties, particularly near fire affected zones, an alternate successful attempt was made in Indian mines to make a plug underground, from surface through borehole, using cement concrete. In this paper the salient features of the methodology adopted for construction of the plug and the experimental procedure for the measurement of air leakage by SF6 tracer gas is described. Measurements of air leakage through rows of ventilation stoppings in two mines viz. Moira (Jambad and Kajora seams) and Kuardi11/12 (Niga seam) collieries of Eastern Coalfields Ltd. (ECL) have been incorporated. Results of experiments conducted at the Central Mining Research Institute (C.M.R.I) to determine leakage through25 and 38 cm thick brick stoppings are also discussed. Results of all these studies are compared, which show that the efficacy and reliability of the remote filled cement concrete plug in respect of air permeability is satisfactory.

Jan 1, 2004

By V. Bari?ic

The scheduled power cuts of early 2008 were a disturbing reminder that South Africa needs to expand its power-generating capacity. Low-grade and discard coals, of which South Africa has much, are a source of energy and amenable to combustion in circulating fluidized beds (CFBs). Foster Wheeler (FW) has a long record in developing this technology in boilers. The technology is flexible in burning a variety of fuels; low-grade, high-ash coals, good quality bituminous and anthracite coals, and biomass and waste fuels have all been used. CFB boilers are efficient, reliable and can be designed to meet tight emission standards. In recent years once-through supercritical (OTSC) CFB technology has been developed. It enables the next stage in CFB development to proceed to a medium-scale (500 MWe) utility in such projects as Lagisza, which runs at a net efficiency of nearly 44%. Scaling the technology up to 800 MWe with a net efficiency of>45% is planned to be commercial during 2009. CFB technology can reduce CO2 emissions in the repowering of coal-fired and greenfield power plants. It does so through greater efficiencies and by co-combusting coal with biomass. FW has also developed CFB technology for the gasification of biomass, as, for example, in a pressurized gasifier to produce syngas, which can be used for the production of biodiesel, thereby reducing CO2 emissions from vehicles. Carbon capture and storage (CCS) can potentially cut CO2 emissions in the generation of power from fossil fuels in the short term, provided that it gains public acceptance, that the required regulatory framework is created, and that emission-trading mechanisms or other incentives provide a solid return on the major investments required. Oxyfuel combustion is an option in CCS; Foster Wheeler is adapting its CFB combustion technology for oxy-fuel combustion to meet this challenge. It is developing Flexi-burn?, which enables a plant to be operated either with or without carbon capture. This paper describes the status of CFB technology in terms of boiler efficiency and fuel flexibility. It highlights the advantages of CFB technology for oxyfuel combustion, presents a development plan for Flexi-burn?, and discusses a pressurized gasifier for biodiesel applications.

Jan 1, 2009

By L. J. Gardner

Ore pass systems play a critical role in moving broken rock from the workplace to surface, and the integrity of the ore pass excavations is crucial. Over the life of the mine, ore pass integrity deteriorates, which may eventually result in the ore pass no longer being fit for purpose. This paper presents several case studies of successful ore pass rehabilitation exercises.

Jan 1, 2006