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By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009

By S. Krishnannair

Singular Spectrum Analysis (SSA) is an effective data-adaptive multimodal tool for monitoring chemical processes. However, monitoring multiscale signals using principal component analysis obtained from the multilevel decomposition of process signals using basic SSA assume the upper control limits of monitoring charts (" ) to have a Gaussian distribution. This assumption deteriorates the performance of basic SSA when applied to the monitoring of nonlinear processes. To address the issue in this paper, the kernel density estimation (KDE) was used to estimate upper control limits of monitoring charts for basic SSA based nonlinear process monitoring techniques. The monitoring performance of the resulting basic SSA-KDE approach was then compared with a basic SSA approach of which upper control limits of the monitoring charts were determined based on a Gaussian distribution. Application on nonlinear dynamic simulated process and base metal flotation plant chemical processes showed that the SSA-KDE approach provided better overall performance than the SSA approach with Gaussian assumption-based upper control limits for its monitoring charts. Keywords: Fault detection, singular value decomposition, singular spectrum analysis, kernel density estimation

Jan 1, 2020

The rising tide of environmentalism has adversely affected many mineral producers, but it has also provided them with a number of opportunities for mineral applications. These markets are as diverse as water treatment, waste disposal, and flue-gas desulphurization. Whilst legislation is forcing up the industry's environmental standards, the advent of environmental management provides an opportunity for producers to display its 'green' credentials. The picture painted of the extractive industry by environmentalists is undeservedly black, because the more efficient a producer is, the more effectively that producer conserves the very resources he exploits. The 1993 IM Forum examined these issues and how they affect the mineral producer, and this publication comprises the papers presented at that meeting.

Jan 1, 1995

By P. J. How, T. O. Hagan, M. F. Handley

Inelastic deformation of highly stressed rock in deep mines needs to be quantified in both time and space. Since most deformation occurs by shear, continuous monitoring of discontinuities in the rock from boreholes holds promise. The casing. Al interpretations of shear movements are based on a simple relation between shear displacement and the resulting change in tilt of the sensor. A prototype has been constructed and has undergone laboratory trials with satisfactory results. Underground trials will commence shortly. The instrument as designed has the potential for other applications, both in the civil-engineering and mining industries. paper describes an instrument that is both cheap and reliable, and capable of monitoring such shear movements continuously. The principle of operation is based on two capacitive gravity sensors mounted orthogonaly to each other in a sealed aluminum

Jan 1, 1988

By H. -U. Lim, C. -H. Kim

The sixth underground pumped powerhouse cavern is under construction now in Korea. For the stability analysis of the five underground powerhouses, finite element method was used. For this analysis, in-situ rock stresses were measured by overcoring method and horizontal to vertical stress ratio was calculated 1.07-1.32 at four sites. Rock mass strength and elasticity were assumed from intact rock properties. The ratio of elasticity of rock mass was 0.16-0.55 of intact rock core elasticity. In general, elasto-plasticity with Mohr-Coulomb failure criterion was applied and the input cohesion and internal friction angle were approximately 0.12-0.22, 0.6-0.87 of intact rock strength parameters, respectively. Der sechste Untergrund-gepumpt-Powerhouse-Cavern ist jetzt im Bau in Korea. Für die vergan-gene Stabilitätsanalyse des fünf unterirdischen Powerhouses in Gebrauch wurde ein begrenztess Elementsmethode benutzt. Für die Analyse wurden In-Situ Felsenspannungen von overcoring Methode gemessen und Horizontale zu senkrechtem Spannungsverhältnis waren als 1.07-1.32 an vier Stellen kalkuliert. Felsenmassenkraft und Elastizität wurden von unversehrtem Felsenei-gentümern angenommen. Das Verhältnis der Elastizität von Felsenmasse war 0.16-0.55 von un-versehrter Felsenkernelastizität. Im allgemeinen wurde Elasto-Plasticity mit Ausfallskriterium des Mohr-Coulombs verwendet. Die Eingabebindekraft und die innere Reibungswinkel waren unge-fähr 0.12-0.22, 0.6-0.87 von unversehrtem Felsenkraftsparametern, jeweilig. En Coree, la sixieme centrale souterraine de la pompe d'accumulation dans la caverne est en construction. La methode d'element fini a ete utilisee pour analyser la stabilite de cinq dernieres centrales en service. Dans cette analyse, la reaction de la roche sur place etait mesuree par la methode d'overcoring et celle du rapport horizontal-vertical etait calculee de 1.07-1.32 en quatre places. L'intensite et l'elasticite de la masse de roche ont ete estimees de la roche intacte. Quant a l'elastic-ite, sa masse de roche etait 0.16-0.55 fois que celle de la roche intacte. En general, elasto-plasticite avec le critere de defaut Mohr-Coulomb etait utilisee et sa cohesion d'energie et son angle de friction interieure etaient supposees respectivement 0.12-0.22, 0.6-0.87 fois que la parametre de l'intensite de roche intacte.

Jan 1, 2003

By J. R. de Wet

The Skorpion Zinc Project demonstrated the viability of the production of zinc from non-sulphide (commonly called ?zinc-oxide?) ores, using the leach/solvent extraction/electrowinning process route. The success of Skorpion raised the profile of a number of other zinc oxide deposits, considered to be similar. However, a study of three such deposits demonstrates that the application of whole-ore-leaching may be limited and that the concentration of zinc, or at least the separation from acid-consuming gangue minerals, prior to leaching is essential to the successful recovery of zinc from these deposits. The recovery of zinc is dependent on an understanding of the geology of the deposit, the mineralogical association of zinc minerals with gangue minerals (Boni, 2005) and limitations of mining practice. Flowsheet development and the associated metallurgical testwork to derive an economically viable treatment route from two of these deposits are discussed. Key parameters affecting zinc recovery by gravity separation and flotation are presented, demonstrating that even minor differences in mineralogy have a profound impact on zinc recovery and reagent consumption. The study also deals with the determination of appropriate design parameters through metallurgical mapping of the dense media separation process.

Jan 1, 2008

By A. Hinde, M. H. Moys

Tailings from metallurgical plants, when deslimed with hydrocyclones, provide a valuable source of material for the backfilling of mines. The effectiveness of this material as a support medium is a sensitive function of its particle- size distribution and water content. It is therefore important that the hydrocyclone-classification plants used to prepare the backfill are operated efficiently, and that the effects of feed disturbances on the composition of the backfil are minimized. This paper addresses the problem of the design, control, and optimization of classification plants to satisfy this need. The development of a computer program to simulate the dynamic behaviour of a hydrocyclone circuit of any given configuration is described. The use of the simulator to investigate the relative performance of conventional and innovative control strategies for single-stage and two-stage circuits is discussed in depth. The results of simulation studies are presented that indicate there is considerable scope for improving the performance and cost-effectiveness of backfill-classification plants.

Jan 1, 1991

By D. F. Williams

The modelling, simulation, and design of processes for the recovery of gold from solution by absorption on carbon require the combination of a suitable rate expression with a description of the flow conflguration of the system. By the use of a suitable rate expression from the literature, methods are presented for the design of multi-stage countercurrent absorption systems corresponding to the commonly used carbon-in-pulp and carbon-in-column contacting systems. The sensitivity of the recovery to various design parameters is illustrated. These results have important implications in the choice and design of equipment.

Jan 1, 1985

"Chairman: Professor E. P. PFLEIDER Rapporteur: Mr P. R. JANISCHPapers:Optimum design of an open pit by D. A. PhillipsAn open pit design system for stratiform ore bodies by L. A. J. Pronk van Hoogeveen, J. R. Cutland and M. WeirAn open pit design model by R. H. Robinson and N. B. PrennThe Chairman in opening the session highlighted the current situation in the United States of America where some 85 to 90 per cent of all mining (except for coal) is done by open pit methods, and where some 40 per cent of the coal is mined by open pit. The South African industry is, of course, dominated by the deeper level underground gold mines; however, with the aid of an extensive open-pit technology developed in other countries, South African companies arc continuing to explore possibilities of open-pit exploitation of base mineral, coal and diamond deposits. Several successful ventures are already in operation at Phalabora, Optimum Colliery, Kimberley and elsewhere, and South Africa is undoubtedly benefitting in this regard by drawing on the experience of others.The papers of this session were therefore particularly pertinent, particularly when viewed in conjunction with those presented at an earlier South African conference devoted specifically to open pit mining.Two themes dominated the discussion which followed presentation of the three papers at this session. The first related to the practicability of using the reported techniques as a tool for management, and their acceptability as such to mine management. This was, of course, not peculiar to this particular session, but rather the major point of debate over the entire conference.The second theme concerned the reliability of the initial drill hole data on which any open-pit design must necessarily be based. This gave added emphasis to the problem of practicability, for no management is likely to accept an elaborate pit design unless confidence can be placed in the ore reserve assessment.In noting these two features of the discussion, it should be remembered that all the three papers dealt largely with design and pre-planning; there was an unfortunate lack of papers or discussion on the subject of controlling the day-to-day mining of open pits, and this is an area where the potential impact which can be made by the computer is even greater.In introducing his paper, Mr D. A. Phillips pointed out that it was concerned only with optimization, and that it therefore assumed, firstly, an adequate subdivision of the orebody into ore blocks characterized by grade, rock type, structure, etc., and, secondly, an acceptable forecast of costs and mineral prices in order to generate a suitable profit matrix. However, programs dealing with these problems for both massive, disseminated and stratiform ore bodies are available to Roan Consolidated Mines. The method of optimization which he had described had been used on a region split into 28 000 blocks, for which the program used three hours of C.P.U. time on an IBM 360/40 computer. The computer design had provided a three per cent improve¬ment on a normal design of the same area."

Jan 1, 2014

By V. M. Lovell, N. P. Finkelstein

The concepts involved in flotation research are discussed and aims are presented. Three different methods of investigation can be used, all of which are applied at the National Institute for Metallurgy (N.I.M.), and these are the empirical, trial and error method, the chemical engineering method, and the physicochemical approaches. This paper is devoted to the last of these. Because of the complexity of the physicochemical interactions involved, the work has, to a large extent, been concentrated on only one aspect, viz. the interaction between the mineral surface and reagents in solution, which was considered of major importance in the understanding of the process. The aspects on which work has been done are the concentration of uranium, the reaction between salt minerals and fatty acids, mixed xanthate-cationic collector systems, and the reaction between sulphide minerals and thiol reagents. Selected problems from the first two of these are discussed in some detail and deal with the agglomeration flotation of uranium and the chemical control of the flotation process for phoscorite. A detailed discussion is also presented of the progress made in the understanding of the interaction between sulphide minerals and thiol reagents, which is of more general application. Finally, an indication is given of the future direction of physicochemical research at the N.I.M.

By D. W. Boydell, E. B. Viljoen

A flowsheet incorporating rotary-drum filtration for the solid-liquid separation step, followed by solvent extraction for uranium purification, is used as a standard against which four flowsheets are compared. These flowsheets employ either counter current decantation or belt filtration for solid-liquid separation, and either solvent extraction or continuous ion exchange plus solvent extraction for the purification step. Sales revenue, taxation, capital expenditure, and operating costs are estimated. These factors are taken into account in the calculation of an incremental net present value for each circuit by the discounting of cash flows at 25 per cent per year over a projected life of 15 years. For the material used in these examples, the highest net present value results from the circuit that employs belt filtration followed by continuous ion exchange and solvent extraction.

Jan 1, 1978

By C. R. Speers, M. I. Forsyth

The paper describes how stress analyses were used to show the defect of a tunnel's shape on the overstressing potential of its periphery. The best profile was found to be that of a horizontal ellipse, for which there was little significant scaling, permitting temporary support to be incorporated into a permanent tunnel support system. This investigation was followed by the modeling of several support systems for tunnels with a horizontal-ellipse profile, which showed that such a profile can reduce the installed support required for a tunnel of different cross section by an average of 57 per cent.

Jan 1, 1994

[Consider a square block W in an ore body S2, to be valued from one centre sample w, and one corner sample w2 (Fig. 9.1). The sample set is ws = Iw,;w21. We can estimate the block average µw by the average of the sample values x, and x2: µw = 'z (x, + xz). (9.1) The error made is measured by the estimation variance: o' (ws to W) = 2 - (ws; W) - - (ws;ws) - - (W; W). (9.2) However, we know that the centre sample w, gives more information about the block value than the corner sample w2. In the example studied in § 8.4, where w, and w2 were considered to be points, we found that of (w, to W) was nearly one third smaller than o2E (w2 to W), therefore when estimating W one should give more weight to w, than to w2. In general, when evaluating a block W from a set of n samples ws, where WS = l w;w2; ... wn1, a better estimator of µw can be obtained if we give different weights to the sample values, depending on the size and the positions of the samples. Some desirable properties of such an estimator µw are: ? It should be a linear function of the sample values xi: n µw = bi xi (9.3) =t where bi = weight given to sample x . ? It should be unbiased, i.e. its expected value should be equal to the true block value: E [µw - µw] = 0. (9.4) ? The mean squared error of estimation of µw should be a minimum E [(µw - µw)2] = a minimum. (9.5) The estimator which satisfies these properties is a minimum variance, linear and unbiased estimator, and is known as the kriging estimator. The corresponding error of estimation is the kriging error. This estimator is also known as the BLUE (for Best Linear Unbiased Estimator) estimator. This was named by Matheron in acknowledgement of the early work of Krige's in the optimization of the evaluation of the South African gold mines. The following notations will be used: µK kriging estimator. o2k = o2K (w,, to W) kriging error.]

Jan 1, 1978

By I. M. MacGregor

This paper discusses the possible use of petrological data and proximate analyses in the prediction of cutting forces for coal. It is restricted to the development of univariate predictors based on data from thirteen collieries in five major Transvaal and Orange Free State coalfields and three coal provinces. The aim of the work was the identification and development of the best predictors of mean peak cutting force and Hardgrove grindability index from among the independent variables evaluated. The data, which were obtained by use of the penetrometer developed by the Chamber of Mines Research Organization, were processed according to the SPSS computer package. The analysis revealed reasonable correlations between the Hardgrove grindability index and (1) the volatiles and vitrinite content in the Vereeniging-Sasolburg and South Rand Coalfields, (2) the contents of vitrinite, vitrinite plus exinite, and minerals plus inertinite in the Eastern Transvaal Coalfield.

Jan 1, 1985

By K. -J. Shou

A special three-dimensional boundary element method has been developed for the simulation of the development of fracture zone in rock mass. This approach comprises a boundary element method and a three-dimensional tessellation mesh generator. By using the tessellation generator, a set of pre-defined potential fractures is defined, and the fractures activate when the failure criterion is exceeded. This approach is justified by the reproduction of features observed in laboratory simulations of fracturing in blocks of rock subjected to compression. An attempt is then made to explain some of the attributes of fracture zone surrounding underground openings. Eine spezielle drei-Dimesionen Grenze Element Methode ist entwickelt zu simulieren die Entwicklung der Fraktur Zone in der Steinmasse. Diese Untersuchung benutzt eine Grenze Element Methode und ein drei-Dimensionen tessellation Masche Generator. Durch das Benutzen des Tessellation Generator, ein Satz der vor-bestimmt potentielle Fraktur ist festgelegt. Die Fraktur wird betaetigen, wenn das gescheiterte Kriterium ist uebersteigt und sind in dem Verscheiben-Abbrechen Element eingeschlossen. Diese Untersuchung ist von der Reproduktion der Fraktur justiert, die ins Labor beobachtet wird, um die Fraktur in der von der Kompression unterworfenen Steine zu simulieren. Ein Versuch ist gemacht, um einige Eigenschaften der Fraktur Zone um die untertageoeffnung zu erklaeren. Une méthode tridimensionelle spéciale de élément frontière a été dévélopée pour la simulation du dévélopment d’une zone fracturée dans la massive roche. Cette approche comprend une méthode de élément frontière et un générateur de maillage de la mosaïque tridimensionelle. En utilisant le générateur de mosaïque, une série des fractures potentielles predéfinies est définie avec d’une procédure de la triangulation de Delaunay. Les fractures activent lorsque le critère de rupture est dépassé et sont inclues dans les éléments du déplacement discontinuité. Cette approche est justifiée par la reproduction des caractéristiques observées dans le laboratoire, les simulations des blocs de roche fracturé et sujetés en compression. La tentative est alors fait pour expliquer quelques arttributs d’une zone fracturée alentours les ouvrages soustérrains.

Jan 1, 2003

Contribution by W. Assibey-Bonsu I congratulate Mr N.O. Lotter on his paper. There are two main aspects of the paper on which I would like to comment. One aspect is his review of P. Gy's sampling theory under the heading 'Sampling the mill feed' (p. 153). The other aspect relates to his reference to one of our papers1 that was published in the Journal (p. 152). My comments on the former will be given elsewhere'. Authors' reply: Dr Assibey-Bonsu's contribution to the subject is appreciated.

Jan 1, 1996

By M. Rudolph, R. Tolosana-Delgado, G. van den Boogaart, M. Reuter, U. Peuker

This paper addresses the challenge to define a concept of entropy (state of order) for a textured particle system. Both the particle texture, the intergrowth respectively, and the particle size influence the order of a particle system. The smaller the particles become, the more particles form the solid system and the more permutations of the structure of the particle bed are possible. The texture within a particle is fixed, as long as it is not subjected to changes due to comminution, flocculation or agglomeration. The paper will present a definition of entropy, which is able to reflect qualitatively and quantitatively the intergrowth and the size (distribution) of the particles. Theoretical examples will show how different breakage mechanisms can be identified using the entropy definition. Furthermore, we will define the specifications for data sets to calculate the entropy of a particle system. Keywords: Milling, mineral liberation, intergrowth, statistical entropy, modelling

Jan 1, 2020

By J J. Pretorius, G M. Hoffmann

Utilisation of lower-grade (<60 per cent Fe) resources, not utilised in the current products, is crucial to ensure optimal resource utilisation and maintaining/improving future profit margins by reclassifying low-grade material to ore. The purpose of the Sishen Expansion Project (?SEP?) is therefore to investigate the technical and financial viability of producing up to an additional 10 Mtpa of new products at Sishen from material currently classified as low-grade materials. Jigging technology has progressed to a point where Sishen?s 50 to 60 per cent Fe run of mine (?ROM?) material, once considered as waste, can be beneficiated to produce a saleable 64 per cent Fe product. This has been confirmed through appropriate beneficiation testwork. Consequently, Sishen can now produce saleable product from material not currently included in the resource definition, increasing the resource base of the mine significantly and ensuring higher resource utilisation. Mine Planning utilised the geological models to produce detail planning schedules, reflecting the current and SEP plants separately, optimised to comply with product specifications of both the current and SEP plants and to confirm the viability of the low-grade resources identified as SEP feed material. The SEP products specifications have been derived by optimally matching iron ore market requirements with the revised resource base. A 64.0 per cent Fe lump product and a 63.5 per cent Fe fine product are the optimal SEP products. The SEP plant will be able to produce 10Mtpa at an average yield of 60 per cent and a lump to fine ratio of 62 to 38. The plant consists of five major sections namely crushing, material preparation, beneficiation, final product handling and quality control services. Maximum integration with the current Sishen plant was considered. Kumba currently has an agreement with Transnet to rail up to 23.5 Mtpa through the Sishen Saldanha Iron Ore Export Channel (?IOEC?). Transnet and Sishen Iron Ore Company have signed a Definitive Agreement that deals with the expansion of IOEC?s capacity, which increases Kumba?s entitlement from 23.5Mtpa to 35.0Mtpa. The detailed enviro-legal impact assessments for the SEP indicated that the project has low enviro-legal risk as a result of it being a brownfields project incorporated into the current Sishen operations.

Jan 1, 2006

By K, J. MAUNDERS

This paper briefly describes a computerised model of the South African electricity system which has been developed jointly by the Atomic Energy Board and the Electricity Supply Commission. The results of an analysis of this system have been subjected to a fairly extensive sensitivity analysis which reveals that up to the year 1990 between 680 and 700 million tons of coal will be required for electric power generation, together with between 7 000 and 10 000 tons of uranium. This result is fairly insensitive to data variations, but the prediction of a cumulative requirement up to the year 2000, of between 1 300 and 1 800 million tons of coal and 25 000 to 70 000 tons of uranium, proves to be very data-sensitive.

Jan 1, 2014

The South African Institute of Mining and Metallurgy mourns the passing of one of its most distinguished sons. Professor J. de V. Lambrechts died at Franschoek on 30th January, 1988, at the age of 76 years after a long illness. Mintek Application Reports A new series of Mintek reports made its appearance in 1987. These are Application Reports, which present an overall perspective of each of Mintek&apos;s technical thrusts to ensure that the existing expertise can continue to be readily accessed. The successful development of an industrial process for the recovery of platinum-group metals from the UG-2 Reef. Application Report no. 1. 1987. 16 pp. The development and implementation of a computer control strategy for conventional milling circuits. Application Report no. 2, 1987. 15 pp. The development of an integrated carbon-in-pulp process for South African conditions. Application Report no. 3. 1987. 17 pp.

Jan 1, 1988