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By V. Mathebula

Paper written on project work carried out in partial fulfilment of B. Tech (Mining Engineering) degree The purpose of this study is to establish whether to mine the Bottom of Pit (BOP)/TOB 4 reserve before the commencement of the Block Cave or whether this should be disregarded and the reserve be extracted at the end of the life of the Cave. The primary goal of this report is to investigate and propose a practical mining method to safely extract the reserve given the set constraints. This report quantifies the additional revenue the TOB 4 will contribute to Finsch?s overall NPV thus enhancing Finsch?s business case and strategically enhancing the SBP. Several underground mining options have been investigated. The proposed mining method includes the installation of a series of extraction tunnels below the TOB 4 reserve from 53 level, with a slot access tunnel system. Ground will be loaded by LHDs from the draw points and tipped into 50-ton dump trucks at a transfer point, from there the ground will be transported to 53 level No. 1groundpass where it will join the existing ground-handling system. Primary development is scheduled to begin October 2002 and last for a period of approximately 7 months until early April 2003.The production is broken into 4 phases. Phase 1 is scheduled to begin mid-April 2003. The final production phase will be completed by November 2005. The production scheduling has been designed in order to remain ahead of the Block 4 undercut in order to ensure stability and safety. Due cognisance was taken of the health and safety of all employees concerned during the design of the mining and ground-handling processes for the Bottom of Pit. As far as is reasonably practicable, the BOP was designed and will be constructed and equipped to provide conditions for the safe operation of machinery and a healthy working environment for people underground. Relevant requirements of the Mine Health and Safety Act regulations pertaining to mining operations have been identified and adhered to during all phases of the design process.

Jan 1, 2004

Since 2001, the Hybrid Stress Blast Model (HSBM) project members have developed a software suite to model the complete blasting process from non-ideal detonation to muck pile formation. To preserve the physics and improve solution time, the breakage engine uses a combination of analytical models and 2D axisym-metric finite differences to model near-field crushing, coupled to 3D discrete lattice fracturing and distinct element numerical methods to model throw and muck pile development. The model has been validated by comparison with laboratory and field tests in kimberlite. Multiple blasthole simulations are used to demonstrate how changes to blasting parameters can influence downstream efficiencies. Case studies of wall control blasting show that the presplit design must balance the two opposing effects of increased damage with increased charge and decreasing attenuation of the seismic waves with decreasing charge. Modelling of decoupled explosives needs further development. Reducing the charge towards the back of the trim blast results in a much more significant decrease in back damage than altering the timing. The model demonstrates how separation along the weaker planes in a jointed rock can coarsen the fragmentation, leading to inefficient beneficiation, and extends the damage to a distance of at least twice the burden behind from the blasthole, severely compromising the wall stability.

Jan 1, 2012

By T. Tamura

It is known that the CaO-FetO-P2O5slag system has a wide liquid miscibility gap at steelmaking temperatures and this two-liquid slag phase has many advantages such as high activities of both FetO and CaO and high amount of P2O5. The phosphorus distribution ratio between the two-liquid slag and molten steel was confirmed to be higher than that between CaOsat.-FetO-P2O5slag and molten steel. The two-liquid slag may be useful for dephosphorization of molten steel and reduction of slag volume. Furthermore, the phase equilibrium of two-liquid CaO-FetO-P2O5slagsaturated with MgO was measured to determine the applicability of the two-liquid slag to dephosphorization in steelmaking process. Keywords: slag, refractories, solid solution, two-liquid phase, dephosphorization, steelmaking, phase equilibrium.

Jan 1, 2004

By G. S. Maré

Tin plating operations are of a complex nature due to the many operational variables that need to be controlled in order to create a product of required quality. The work in this report lays the basics for the control of a halogen plating operation based on the DuPont tinplating set-up with regard to the chemical make-up of the plating solution, as well as operational variables such as temperature and current density. To evaluate these aspects of the process, a rotating cathode Hull-cell set-up was used. This allowed for a laboratory scale plating arrangement that simulates industry closely with regard to chemical and hydro-dynamic considerations. Typical industry accepted standards were obtained for the values of operational variables and a ?baseline? test was conducted employing these standards. All subsequent tests conducted were benchmarked against this baseline result. A large suite of results was obtained in which it was found that changes could be made to the industry accepted norm which would improve on the stability of the operation and therefore the quality of the final tin-plated product. Examples of these results are: an increase in stannous tin concentration, an increase in sodium chloride concentration and a slightly elevated plating temperature. In addition, conditions were found that must be avoided to prevent instability and poor product quality.

Jan 1, 2010

Recently, work was carried out by the Shotcrete Working Group to study anisotropy in steel fibre reinforced shotcrete using strain-controlled, compressive strength testing methods. The shotcrete materials used and specimen preparation procedures as well as testing methods are described. The test results are discussed and it is concluded that, because of the anisotropic nature of fibre reinforced shotcrete, it may be worthwhile investigating the degree of such anisotropy in practice using strain-controlled, strength testing techniques.

Jan 1, 2001

By H. A. D. Kirsten

Shotcrete has become a strategic component of support in underground mines. The ductility of reinforced shotcrete makes it a safe and economic means of surface support under adverse static and dynamic loads. The ability of ductile shotcrete to sustain load at large deflections enables excavations in squeezing conditions to be stabilized and the safety in excavations subject to rock bursting, to be assured. A Shotcrete Working Group was formed to find the configurations of fibre reinforcement that would give shotcrete the same ductility as when reinforced with mesh. Beams and panels reinforced with various types and lengths of fibre were accordingly tested. A single mix design consisting of river sand, ordinary Portland cement, fly ash, condensed silica fume and gunite dust and segregation suppressant was used. Steel and polypropylene fibre varying in length from 25 to 50 mm were used in nominal contents of 5 % and 0.5% by mass respectively. Beams, panels and control specimens were shot into specially made formers. Suitable mixing procedures were developed for the different types of fibre. The test specimens were shot in a semi-dry mix process. The shotcrete was cured until tested 28 days after shooting. The fibre contents and uniaxial compressive and Brazilian tensile strengths of the shotcrete were determined from the control specimens. The beams and panels were tested in bending in specially manufactured test rigs. The beams were examined for simple supports and fixed ends. The panels were fixed in a manner that simulated underground conditions and were loaded statically under uniform pressure. The beams were loaded and the corresponding deflections measured up to failure. The panels were loaded up to mid-span deflections of 150 mm. The results are presented in the form of load-deflection graphs. The peak loads and ultimate deflections for the fixed end beams were considerably larger than for the simply supported beams for the various types of fibre considered. None of the beams tested, however, were able to sustain load at relatively constant value beyond the peak load. The panel tests showed that 40 mm and 50 mm long steel fibre and 30 mm, 40 mm and 50 mm long monofilament polypropylene fibre reinforcement gave shotcrete the same ductility as mesh.

Jan 1, 1998

By M. Ayhan

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

Jan 1, 2006

By T. Wettainen

Malmberget town is located in northern Sweden, approximately 70 km north of the Arctic Circle. Parts of the town overlie more than 20 iron orebodies, consisting mainly of magnetite with smaller quantities of haematite. The mine is operated by the mining company LKAB. Mining started in the 17th century, but not until the railway to the coastal city of Luleå was completed in 1888 did large-scale production commence. Around 1920, mining proceeded underground and today sublevel caving is the only mining method used. Sublevel caving causes subsidence of the ground surface, and buildings and residential areas have been relocated due to the mining activities for more than 50 years. The number of seismic events accompanied by strong ground vibrations is now increasing. In 2008 the mine received a permit from the Environmental Court of Sweden to increase production to 20 Mt of crude ore per year. A prerequisite for the permit was that the mine conducts a number of investigations regarding the environmental impact on the residents of Malmberget. One of these investigations concerned how seismicity will change as production increases and what measures could be taken to reduce inconvenience to the town residents. Today the mine possesses an extensive seismic monitoring system with more than 180 underground and surface geophones. For this study, eleven seismically active volumes in Malmberget mine were identified, and for each of them, a yearly future maximum magnitude interval was estimated based on the current production plan. Relationships between historical seismic events and measured ground vibrations in the town of Malmberget were established, and future ground vibrations caused by expected seismic events were estimated using a probabilistic approach. The outcome was the number of intervals of expected ground vibration per year and per monitoring point. Possible measures to reduce inconvenience for the town residents include blast restrictions, sequencing, and possibly preconditioning. The ultimate long-term solution is an almost complete relocation of Malmberget town. This process has recently been formalized and LKAB is taking an active part in realizing this goal.

Jan 1, 2014

By D. R. Hack

The complexity of commercial mining software has gained rapidly over the past decade as hardware developments have surpassed software capabilities at a staggering rate. Software users, recognizing the limitations of off-the-shelf applications, have adapted embedded scripting languages. Custom programming has always had a vital role in mine computing innovations, yielding a dynamic research environment in industry and academia. Fields such as industrial minerals can benefit from customization of existing software, since the majority of mine planning software was designed for large metal mines. Different customization approaches utilizing embedded scripting languages are presented, with examples of sand and gravel applications in development. Following implementation by Surpac and development of the Surpac Command Language, Tcl has been widely applied. Mintec introduced Python, also extensible and portable amongst various operating systems, for use in their MineSight products. In early 2000, Gemcom introduced the use of Microsoft Visual Basic for Applications, widely used customization tools for a decade. Datamine implemented a flexible multi-language approach, with all program commands and processes available through the COM Server Interface. This extends customization from the existing macro language to scripting in HTML, JavaScript, or any language that supports COM.

Jan 1, 2003

By W. Robert, J. Wirth, G. Grasselli

ABSTRACT: Strength, deformability and fluid flow properties of rock joints are to a great extent controlled by the surface roughness. The hydraulic conductivity of a rock fracture depends on the aperture distribution, the surface roughness and the contact area, each of which depend on the stresses that act on the fracture plane. However, despite much recent work, a complete understanding of the relationship between void space geometry, contact areas, applied stress, and hydraulic conductivity has yet to be achieved. Moreover, although in situ rock joints are subjected to both normal and shear loading, few studies have been conducted to investigate the effect of shear displacements on fluid flow through a single rock fracture, and which have addressed the issue of flow anisotropy induced by shearing. Experimental flow tests show that with increasing shear displacement, the fracture becomes heterogeneous and anisotropic, and becomes more permeable in the direction parallel to the displacement (Yeo et al., 1998). On the other hand, dry shear tests show that the surface fails in areas facing the shear direction (Grasselli and Egger, 2003). Moreover, the experimental results confirm that the shear strength of rock joints is direction-dependent. In this paper, a three-dimensional morphological description of several a natural fractures that have undergone shear displacement were generated using the Automated Topographic System at the University of Basel. The data analysis method of Grasselli (Grasselli et al., 2002a) is used to determine the surface parameters that are known to control the shear strength. Simulations of fluid flow through this fracture, in various directions relative to the direction of shear, are conducted using an FEM flow simulator. The results constitute the most detailed analysis yet undertaken of the relationship between shear displacement, shear strength, and fracture transmissivity. RESUME: La rugosité des joints en roche joue un rôle primaire sur la réponse hydromécanique du massif fracturé. En effet, la conductivité hydraulique des discontinuités en roche est influencée par la rugosité, et par la distribution des ouvertures et des zones de contact, dont chacun dépend de l’effort normal et du cisaillement qui agissent sur la surface du joint. Les essais d'écoulement en laboratoire montrent que si cisaillée, la fracture devient anisotrope, et plus perméable dans la direction parallèle au déplacement (Yeo et al., 1998). D'autre part, les essais de cisaillement indiquent que seules les zones de la surface qui font face à la direction de cisaillement sont impliquées dans le cisaillement (Grasselli et Egger, 2003). D'ailleurs, les résultats expérimentaux confirment que la résistance au cisaillement des joints de roche est dépendante de la direction. Dans cet article, plusieurs fractures en roche ont été analysées en utilisant un système de mesure topographique à l'Université de Bâle. La méthode d'analyse de données proposée par Grasselli (Grasselli et al., 2002a) a été employée pour calculer les paramètres de la surface qui déterminent la résistance au cisaillement. Plusieurs simulations du coulage, dans diverses directions relativement à la direction du cisaillement, ont été faites à l’aide d’un programme de calcul à éléments finis. Les résultats constituent une des analyses les plus détaillé sur le rapport entre le déplacement pendant le cisaillement, la résistance au cisaillement, et la transmissivité spécifique de la fracture. ZUSAMMENFASSUMG: Die Festigkeit, Verformbarkeit und Hydromechanik von geklüftetem Fels wird hauptsächlich von der Oberflächenrauhigkeit der Bruchflächen bestimmt. Die hydraulische Leitfähigkeit einer Kluft hängt von der Verteilung der Rissbreiten, der Oberflächenrauhigkeit und den Kontaktflächen ab, die ihrerseits von dem auf die Bruchfläche wirkenden Druck beeinflusst werden. Obgleich in letzter Zeit viel in dieser Richtung geforscht wurde, kann der Zusammenhang zwischen Porenraumgeometrie, Kontaktflächen, wirkendem Druck und hydraulischer Leitfähigkeit noch nicht vollständig erklärt werden. Obwohl Klüfte in situ sowohl Normal- als auch Schubspannungen ausgesetzt sind, wurde der Einfluss von Scherverschiebungen auf den Kluftwasserfluss und die daraus resultierende Fliessanisotropie in einer einzelnen Kluft bisher kaum untersucht. Experimentelle Untersuchungen des Durchflusses zeigen, dass die Kluft für größer werdende Scherverschiebungen heterogen und anisotrop wird wobei die Permeabilität parallel zur Verschiebungsrichtung ansteigt (Yeo et al., 1998). Andererseits zeigen trockene Scherversuche, dass die Oberfläche an Stellen versagt, die gegen die Verschiebungsrichtung anstehen (Grasselli und Egger, 2003). Des weiteren bestätigen die experimentellen Ergebnisse eine Richtungsabhängigkeit der Kluftscherfestigkeit. In diesem Artikel wird eine dreidimensionale morphologische Beschreibung mehrerer natürlicher, durch Scherspannungen verschobener Klüfte vorgestellt, die vom Automated Topographic System der Universität von Basel erstellt wurde. Das von Grasselli (Grasselli et al., 2002a) entwickelte Datenanalyseverfahren wird zur Feststellung der die Scherfestigkeit bestimmenden Oberflächenparameter herangezogen. Mittels einer FEM-Simulation wird der Durchfluss durch eine solche Kluft in verschiedenen Richtungen simuliert. Die Ergebnisse stellen die bisher ausführlichste Analyse des Zusammenhangs zwischen Scherverschiebung, Scherfestigkeit und Durchlässigkeit (Transmissivität) einer Kluft dar.

Jan 1, 2003

By F. H. Deist, M. P. Roberts

"The Collieries Research Laboratory of the Chamber of Mines of South Africa is developing a coherent system of programs to aid in the full spectrum of activities arising in the planning of new as well as operating mining enterprises. It is the purpose of this paper to describe the design and application of two subsystems in the complex.One of these subsystems is an initial version of a production simulator. This program draws upon a model of a mining enterprise and simulates the operational and financial aspects of a set of alternative mine production plans.These plans are specified in terms of proposed sequences of operations. Details such as reserves, production rates, resource requirements and so on, are taken from the model.Physically, the model takes the form of a cross-referenced data base, maintained by means of a general file maintenance system which is another subsystem described.The paper concludes with a description and analysis of the first practical application of the two programs."

Jan 1, 2014

By L. du Plessis

The name FISH (Fully Integrated Sort House) refers to a class of technology deployed at Jwaneng Mine final diamond recovery. The FISH concept is based on three pillars, namely: ?Improved sorting efficiency FISH is based on laser technology, which is more efficient than hand sorting for certain product categories. Laser sorting is based on measuring in-elastically scattered light from molecules and this is referred to as Raman spectroscopy. The Raman scattered light occurs at wavelengths that are shifted from the incident light by the energies of molecular vibrations ?Availability of production information Roller gap diamond size distribution information is generated on line for upstream process optimization ?Improved product security A ?hands-off? philosophy reduces security risk during operation and maintenance of the plant. In addition, a number of lessons were learnt about the application of new technologies in the industry: ?The required human competency profile demanded by new technology should match the available competencies of the operational staff ?An integrated information management system should be fully functional for both production management and diamond control purposes ?Operational feedback must be correctly evaluated to identify design, maintenance, training and operational issues so as to accelerate the maturity of the new technology within the time span of the sustainable operations project ?Project execution and technology maturity risks have to be evaluated and married to ensure risk mitigation by means of suitable project resource and contracting model selection.

Jan 1, 2003

By Martin Banda, Gift C. Chisakuta, Moses Chabinga

KCM made a major modification to the Nchanga Tailings Leach Plant (TLP) changing the circuit from feeding post leach thickeners in parallel with leach discharge for solid ?liquid separation to a Counter Current Decantation (CCD) configuration utilising most of the existing equipment. The new circuit is aimed at improving copper recovery from approximately 70% to 79% through enhanced wash efficiency. The re-introduction of CCD circuit at elevated throughput of 46 000-tpd design was made possible due to the EIMCO E-Duc technology design which is an auto-dilution system that enhances solids settling rate. Commissioning (manual operation) which accommodated on-going operational requirements was phased and completed in January 2004. The circuit stabilised in subsequent months and in March alone an all time record copper recovery of 81.8% was achieved which contributed an extra 779 tonnes copper above the plant?s projected production plans. 100% of the project cost was paid back by end of April 2004 This paper discusses the work involved and the challenges faced during the re-commission

Jan 1, 2005

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

By S. H. Yi, J. R. Kim, Y. S. Lee

The viscosities of CaO-SiO2-Al2O3-MgO-FeO slags were measured under conditions ofCaO/SiO2=1.15–1.6, 10–13 percent Al2O3, 5–10 percent MgO and 5–20 percent FeO. Slag viscosity decreased with increasing FeO content at a fixed basicity (CaO/SiO2) of slag. Slag viscosity at low FeO (<7.5 percent FeO) exhibited a minimum value by increasing MgO content in slag. Viscosity decreased with increasing slag basicity up to 1.3 while it increased as slag basicity increased from 1.3 to 1.5. Thus, it was proposed that the driving force for the decreases of slag viscosity would be an increase in depolymerization of silicate network at C/S=1.3, while the viscous behaviour at C/S>1.3 would be increased with increasing the chemical potential of primary solid phase e.g. dicalcium silicate. A thermodynamic approach for the activity of primary solid phase in molten slags resulted in a reasonable relationship between viscosity and slag components. Therefore, it was confirmed that slag viscosity in basic slags system (C/S>1.3) could be determined by the chemical potential of dicalcium silicate. Keywords: viscosity, basicity, bosh slag, blast furnace, slag structure, FT-IR

Jan 1, 2004

Keywords: Pyrometallurgy, furnace, Lonmin, platinum, PGM, UG2 Lonmin, earlier than any other primary platinum producer, had to deal with the concentrating and smelting of UG2-rich ores and concentrates respectively. Smelting was performed at a fairly modest scale compared to its industry peers in the Platinum Group Metals (PGMs) industry, and was focused on smelting concentrates obtained through low mass pulls while still maintaining high recoveries at its concentrators. Lonmin gradually smelted larger quantities of UG2 concentrates. Initially two 2.3 MW Infurnco furnaces were commissioned in 1982, followed by three 5 MW circular 3-electrode Pyromet furnaces in 1991. Deep electrode immersions and moderately high hearth power densities were used in all the designs. Lonmin decided to continue with circular furnace technology when it planned its new high-intensity No. 1 Furnace. Neither Lonmin nor the technology supplier and EPCM company foresaw the challenges that scale-up would bring when applied to the smelting of UG2-rich concentrate blends. Superimposed on the high chromite content, was the low base-metal loading, mineralogical difficulties, and fine particle size that came with milling of all concentrates (especially UG2 and recycle materials within the smelter). Through a process of fundamental diagnoses of furnace run-outs and wear patterns observed during repairs, the main challenges operating this high-intensity furnace were identified as sulphur vapour corrosion of the copper coolers, uneven and unpredicted movements of refractory bricks with associated copper cooler lift and matte tap-block movement, the formation of three-phase ?mushy? zones, high refractory and tap-hole wear rates, uncertainty in matte level and associated insufficient matte buffer height, and high furnace operating temperatures. These factors seldom worked in isolation and will be explored in more detail in the paper. The variability in furnace feed characteristics led Lonmin to re-design Furnace No. 1, to invest in back-up furnace capacity, and to invest in improved monitoring and control. These improvements consisted of online and high-frequency off-line feed chemistry and mineralogy monitoring, online pressure monitoring of water-cooled circuits, an alternative matte liquid level measurement in the furnace, and electrode immersion estimation. Improvements were also made at the converters by installing and utilising optical spectral analysis of the converter flame to characterise converter behaviour and achieve the desired iron end-point for white matte. This paper also briefly discusses the current and future expansion plans, as well as ancillary operations at the smelter such as flue-gas handling and materials handling.

Jan 1, 2011

By R. A. Williams

Electrical impedance tomographic methods have been applied to a variety of mineral and chemical processes in the laboratory and on plant. This review paper surveys technical developments in measurement methods to enable quantitative extraction of key process information in the form of mapping of concentration profiles, mixture homogeneity and suspension velocity. The methods for determining velocity are summarized, since this is of especial interest when applied to opaque systems where most conventional optically based measurements fail. A recent significant development is the use of ultra-high speed measurement that now allows velocity vectors to be extracted for fast moving mixtures and fluids (up to several metres per second). New data are reported pertinent to low and high solids concentration flow in pipelines. Use of the methods offer improvements to design of such systems but also points to the use of tomographic electrical sensor as online flow measurement and fault detection. This offers new opportunities for applications and benefits in the design and monitoring of mineral slurries and sludges.

Jan 1, 2008

By B. J. Madden

Over 206 million tons of hard coal were mined in South African collieries in 1996. Some 132.5 millions tons came from underground operations and approximately 120 million tons came from bord-and-pillar workings resulting in between 100 000 and 150 000pillars being formed. Coal pillar design remains a significant feature of South African mining. This paper reviews South African coal pillar design procedures in the light of 90 pillar collapses that have occurred since 1904. It shows that, while the current pillar strength formula is still valid within the original empirical range of Salamon1,cognisance must be taken of local conditions. Current South African coal pillar research is attempting to account for the variations in local conditions with the emphasis on the effect of discontinuities and pillar deterioration. It is suggested that a more holistic approach to pillar design be adopted to include a design methodology that examines the stability of the roof, pillar and floor of the underground workings. Using this approach, deviations from the empirical database used by Salamon and Munro will be incorporated into the design methodology resulting in more stable underground workings.

Jan 1, 1998

By A. Muwila

Hercules? is a low nickel austenitic stainless steel developed at Mintek that has a typical composition of 9 wt% Mn, 0.05 wt% C, 2wt% Ni, 0.25 wt% N and 16.5 wt% Cr. A more corrosion resistant version of Hercules? (Hercules? B) with 0.5 wt% Mo has also been developed. Potentiodynamic tests performed on Hercules? B in a 5wt% sulphuric acid solution showed it to have improved corrosion resistance comparable to that of AISI 304. The effect of a varying Mn content on the corrosion resistance of Hercules? B has also been investigated and the results discussed in this paper. From the corrosion test results, it is clear that decreasing the Mn content of Hercules? B increased the corrosion rate, while increasing it decreased the corrosion rate. Keywords: austenitic stainless steel, % ferrite, molybdenum, manganese, nitrogen, electrochemical corrosion tests, potentio-dynamic scans, microstructure, chemical analysis.

Jan 1, 2007

By S. du Plessis

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

Jan 1, 2013