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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By S. H. Badenhorst

Zacharias Lewala discovered a diamond at Grasplatz, near Lüderitz in April 1908. While this stone may not have been the first diamond to be found in this barren, inhospitable area, it most certainly was the stone that set off a chain reaction ultimately leading to the creation of Namdeb as we know it today. [ ]

Jan 1, 2003

By E. Pizarro, A. Videla, G. Compan

One of the main problems related to mining investment decisions is the use of accurate prediction models. Metallurgical recovery is a major source of variability, and in this regard, the Chuquicamata processing plant recovery was modelled as a function of geomining-metallurgical data and ore characteristics obtained from a historical database. In particular, the dataset gathered contains information related to feed grades, ore hardness, particle size, mineralogy, pH, and flotation reagents. A systemic approach was applied to fit a multivariate regression model representing the copper recovery in the plant. The systemic approach consists of an initial projection of the characteristic grinding product size (P80), based upon energy consumption at the particle size reduction step, followed by a flotation recovery model. The model allows for an improvement in the investment decision process by predicting performance and risk. The final geometallurgical model uses eight operational variables and is a significant improvement over conventional prediction models. A validation was performed using a recent data-set, and this showed a high correlation coefficient with a low mean absolute error, which reveals that the geometallurgical model is able to predict, with acceptable accuracy, the actual copper recovery in the plant.

Jan 1, 2015

By W. Carter, P. Chaubal, K. Spaleck, M. Schoeman, J. Bobek, W. Seegers

Keywords: Pyrometallurgy, steel, hearth, blast furnace The Mittal Steel Company operates about 36 blast furnaces on four continents. Furnaces range from 1100 m3 to 4800 m3 inner volume. The focus of the group is to push for increasing productivity and increasing campaign life. This has been especially challenging, as many of these furnaces were not equipped for long campaigns during their prior rebuilds. Monitoring and operating practices have to be modified to match the new philosophy. Mid-campaign hearth repair strategies and hearth design philosophies have had to be reconsidered. The paper describes experiences with the current hearth designs and measures taken for hearth life extension. Additionally, the philosophy of recent hearth re-designs is discussed.

Jan 1, 2006

By Peter Townsend, Sergei Diachenko, Allan Moss

The Palabora Mining Company has successfully extended the life of its operation by developing a 30,000tpd block cave underground mine below the now closed open pit. The process of transitioning from surface to underground mining has been technically, operationally and managerially challenging. This has been due to a number of factors; in particular, the development of a block cave in a very competent rock mass. The competence of the rock mass is clearly demonstrated in the open pit that preceded the block cave, one of the steepest deep open pit excavations in the world. With cave breakthrough, however, the pit was ?instantaneously? deepened by 400m causing a major failure of the northwest wall involving close to 100Mt of waste material.

Jan 1, 2006

By M. Natarajan, C. J. Cutler, E. Mponda

Keywords: Pyrometallurgy, furnace, KCM Nkana, Zambia The Nkana smelter was initially commissioned in 1931, with two reverberatory furnaces, two Peirce-Smith converters, and blister copper casting facilities. Reverberatory furnaces were the mainstay of production up until 1994, when an El Teniente Converter (CT) was installed to upgrade reverberatory furnace matte to white metal, prior to converting in conventional Peirce-Smith (PS) converters. In 2000, a decision was taken to increase the proportion of concentrate smelted in the CT by introduction of bone-dry concentrate injection through the tuyeres. A flash dryer with a nominal capacity of 1 200 metric tons per day of dry product, and associated tuyere injection system was commissioned in March 2004. Based on the projected concentrate arisings from the KCM mines into the future, as seen in 2004, it was decided to develop the CT to be the primary smelting vessel at Nkana, to handle a minimum of 1 250 tons per day of concentrate, and to operate only one reverberatory furnace in slag-cleaning mode pending a full evaluation of alternative slag-cleaning technologies. The anticipated cathode production from Nkana was to be in the range 140 to 150 000 tons per annum. This paper details the outcomes from trials that were carried out in August and September 2004, using two reverberatory furnaces for slag cleaning. The results of these trials, plus further work in October and November, provided confidence to move to one reverberatory furnace for slag cleaning in December 2004. With the advent of Vedanta as the majority shareholder in KCM at the end of 2004, the approach has been to maximize the available smelting capacity. Currently, two reverberatory furnaces and the CT are on-line, with the higher silica concentrates going to the reverberatory furnaces with an appropriate amount of pyrite, and the cleaner concentrates going to the CT. Expansion of the smelter is currently under investigation.

Jan 1, 2006

By George J. Karcas, Raimo Kuusisto, Pertti Pekkala

Ongoing Outokumpu development in Solvent Extraction and Electrowinning Technology, involving all aspects of process chemistry, equipment and control, extends over a period of close to 30 years. The development in SX started with molybdenum and rhenium, continued with zinc, manganese, cobalt and nickel and is now focusing on copper. The OutoCompact VSF? SX concept, which has been recently introduced, is a honed version of earlier VSF? technology. The Outokumpu VSF? ("Vertical Smooth Flow") SX package includes the DOP ("Dispersion Overflow Pump") units, the Spirok Mixers, the OutoCompact Settlers including their DDG ("Dispersion Depletor Gate") fences and tank farm equipment such as the LOS ("Loaded Organic Scrubbing") tank as well as the CEP ("Copper Electrolyte Purifying") tank. Although the VSF? SX package can be implemented according to several optional lay-outs, the so-called Track version has lately been introduced to the advantage of new plants. The new OutoCompact SX technology decreases the footprint of future VSF? plants. The lay-out, including plant size flexibility, have further been improved by Outokumpu?s new OutoReverse settler technology. Two of several SX plants currently under construction rely on reverse settlers in order to maximize their performance. The Outokumpu EW technology includes process know-how as well as proprietary equipment. The copper EW package consists of permanent stainless steel cathodes based on wax-less technology and lead anodes utilising polymer concrete cells with the double contact bus bar system and ventilation hoods fitted for efficient mist control. The lifting of cell hoods, as well as cathode washing, is done by the cathode pulling crane. Proper electrolyte flows and matching current density further ensure high productivity of LME grade copper cathodes.

Jan 1, 2005

By B. Ndlovu

The world mineral industry has over the years experienced growth in the production of nickel (Ni) due to its use not only in the catalytic industry but mainly also to its demand in the stainless steel production industry. Hence there is a need to produce more pure and marketable grades of Ni through the use of efficient purification routes such as solvent extraction. The V10-LIX®84-IC system resulted in nickel (Ni) extraction isotherm shifting to lower pH levels. The pH window of opportunity for the extraction of Ni subsequently increased in solution containing magnesium (Mg) and calcium (Ca) even though the system also resulted in slight shifts to less positive pH values for Mg and Ca curves. Results showed a synergistic effect of LIX®84-IC when added to V10 for all elements, Ni, Mg and Ca. The pH50 values for elements Ni, Mg and Ca in the V10-LIX®84-IC system were 2.95, 8.10 and 7.70 respectively. Comparing results obtained when using V10 alone produced ?pH50 for Ni, Mg and Ca being 3.35, 0.15 and 0.70 respectively, which was a confirmation of the synergistic shifts for all the elements. The ?pH50 (Mg-Ni)value was 1.95 with no synergism and 5.15 with synergism and that for ?pH50 (Ca-Ni)was 2.10 with no synergism and 4.75 with synergism. This showed that the Ni-Mg separation factor was relatively larger than the Ni-Ca. Improved loading and stripping kinetics were also observed. Keywords: Nickel solvent extraction separation, magnesium, calcium, versatic 10 acid and LIX®84-IC.

Jan 1, 2008

By S. S. Makgato

In this study, coke oven tar additions over a range of 0?8 wt.% were evaluated as a possible substitute for imported coal fractions. The coke oven tar used was collected from tar decanters in the byproducts section of the coking plant. The moisture content in the tar varied depending on the residence time and water carryover from the coke oven tar separators to the storage tanks. Moisture contents of 1 wt.%, 3 wt.%, and 6 wt.% were investigated in order to evaluate the effect on coal blend, carbonization, and coke properties. At 6 wt.% moisture content with 6 wt.% coke oven tar, although the coke quality improved the yield showed a 4% decrease. On the other hand, 1 wt.% moisture content with coke oven tar of 6 wt.%, increased the yield by 1% and the coke quality improved. However, the latter process was characterized by an excessive increase in wall pressure and pushing energy, both of which are detrimental to the oven walls. The optimum moisture content in coke oven tar was found to be 3 wt.% with a coke oven tar addition of 6 wt.% in the coal blend. With these conditions, the coke properties improved and wall pressure and pushing energy were acceptable. However, a decrease in coke yield of up to 2% was observed. Despite this, coke oven tar addition is considered to be a viable option based upon economic factors of a reduction in the quantity and cost of imported coking coals that is required to achieve the same optimum final coke product. Keywords coal substitution, coke oven tar, tar moisture, coal blend, coke, coke quality.

Nov 1, 2013

By R. Heuberger

South Africa?s Mining Industry operates in an uncertain world. The industry is buffeted by problems regarding retrenchments, unemployment, low productivity, rising costs, volatile exchange rates, commodity prices and government regulations. With these uncertainties facing the decision makers, what does applied technology offer the industry?s management? Modelling languages with risk analysis have been available for decades, but in the past their use has been very expensive, requiring large mainframe computers and lots of computer time. Today, PCs and laptops have incredible power, which makes interactive risk analysis affordable and viable for all enterprises, whether small or large. ?What is risk analysis? ?What is Monte Carlo simulation? ?What kinds of computer models need to be created to use risk analysis and Monte Carlo simulation effectively? This paper addresses these questions and illustrates, with a practical example in the mining industry, how risk analysis techniques can be used to support decisions in the climate of uncertainty.

Jan 1, 2005

By K. Aoki, Y. Mito, S. Shirasagi

The authors developed the TBM Excavation Control System (the TBM Navigator), in order to realize the advanced observational construction. During the excavation using this system, the rock strength value is immediately calculated from the TBM driving data as an index of rock properties, and the drill energy coefficient is also calculated from the drill logging data that is carried out using the probe hole ahead of the tunnel face. In this study, a new, geostatistical simulation-based method is proposed for the automatic prediction of the rock properties ahead of the tunnel face with good precision, using both the drill logging data and the TBM driving data. The applicability of this method is validated through the prediction at the actual tunnel excavation that passes through the faults. Les auteurs ont mis au point un Système de Contrôle de forage avec la machine à pleine section (Navigateur de la machine à pleine section), en vue de réaliser un système de surveillance plus efficace. Avec ce système, la résistance de la roche est immédiatement calculée, au cours du forage, à partir des données de conduite de la machine, comme indice des propriétés de la roche, et le coefficient d'énergie de la foreuse est également calculé à partir des données de log de forage collectées dans un trou de sonde foré dans le front de taille. Dans cette étude, on propose une nouvelle méthode basée sur la simulation géostatistique qui permet de prévoir d’une manière automatique, des propriétés de roches se trouvant derrière le front de taille avec une précision satisfaisante, à l’aide des données de log de forage et celles de conduite de la machine à pleine section. Cette méthode s’est avérée suffisamment précise au cours du forage d’un tunnel réel qui traversait une zone de failles. Die Autoren entwickelten das TBM Ausschachtungssteuerungssystem (den TBM Navigator), um noch besser überwachte Bauarbeiten zu ermöglichen. Unter Einsatz dieses Systems wird die Gesteinsfestigkeit während der Ausschachtungsarbeiten unmittelbar aus den TBM Antriebsdaten als ein Index für die Gesteinseigenschaften berechnet. Gleichzeitig wird auch der Bohrenergiekoeffizient aus den Bohrlogdaten berechnet, die an Hand der Probebohrung am Stirnende des Tunnels erhalten wurden. In der vorliegenden Studie wurde ein neuartiges, auf geostatistischen Methoden basierendes Verfahren für die automatische und angemessen genaue Vorhersage der Gesteinseigenschaften am Stirnende des Tunnels vorgeschlagen, für das sowohl die Bohrlogdaten als auch die TBM Antriebsdaten verwendet werden. Die Anwendbarkeit dieser Methode wird durch die Vorhersage bei einer tatsächlichen, durch Verwerfungen verlaufenden Tunnelausschachtung bewiesen.

Jan 1, 2003

By A. D. Engelbrecht

An investigation was undertaken to ascertain the suitability of four selected low grade, South African coals for gasification in a bubbling fluidized bed for production of synthesis gas and for the development of integrated gasification combined cycles (IGCC). This study consisted of the characterization of the coals, laboratory evaluation of intrinsic reactivity, and experimentation with a pilot-plant fluidized bed gasifier. Results of the characterization experiments show that the selected coals are high in ash, rich in inertinites, very dense (low porosity), with low caking indices and high ash fusion temperatures. Reactivity measurements with a thermogravimetric analyser (TGA), under reaction rate controlling conditions with carbon dioxide, showed that the reactivity of the coal chars decreases with increase in rank of the coal, as expressed by the vitrinite random reflectance and carbon content of the parent coals. The fixed carbon conversion achieved in the fluidized bed gasifier also correlates well with the rank parameter of the coal, with higher conversions being obtained with the lower rank coals. Thermal shattering and attrition of the coal particles produce significant amounts of fines, which correlate with the grindability indices, and no agglomeration (non-caking) was observed. It is concluded that fluidized bed gasifiers are able to utilize typical low grade, high ash South African coals for synthesis gas production and for inclusion in integrated gasification combined cycles for power generation.

Jan 1, 2010

By N. J. Castilla, R. Giglio

"Circulating fluidized-bed (CFB) combustion technology has been around for over 40 years, but over the last 6 years it has been commercially demonstrated at the 500 MWe scale at the Lagisza plant located in Bedzin, Poland. The CFB at the Lagisza plant has unique first-of-a-kind design features, such as vertical-tube supercritical steam technology and a lowtemperature flue-gas heat extraction that allows the plant to achieve high plant efficiencies of over 43% (net lower heating value). Another unusual feature for a coal power plant is that this plant meets all its atmospheric emission permit levels without any post-combustion de-NOx or de-SOx equipment such as selective catalytic reduction (SCR) or flue-gas desulphurization (FGD).CFB clean coal power technology is entering the utility power sector just in time to help deal with declining quality in internationally traded coals and to promote the large-scale use of economic, low-quality domestic fuels. Owing to the very attractive price discounts, growing supplies of low-quality Indonesian coals are outpacing the supply of high-quality Australian, Russian, and US coals. In Germany and Turkey, the use of domestic lignites for power production provides a secure and economic energy solution while creating domestic jobs.Conventional pulverized coal (PC) boilers will have trouble accepting these off-specification coals because of their narrow fuel specifications; they typically call for heating values above 5500 kcal/kg. This limitation is not an issue for CFB technology because of its ability to burn the worst and best of coals with heating values ranging from 3900 to 8000 kcal/kg.This paper provides an outlook for future coal supply, quality, and price, as well as a review of the technical and economic benefits of CFB technology firing low-quality fuels for utility power generation."

Jan 1, 2015

By G. E. Blight

Wind erosion can be a major cause of the loss and dispersion of tailings material from a tailings dam into its surrounding environment. Such dust dispersion can be a serious nuisance, as well as a health hazard to inhabitants in nearby settlements, and can also damage the health of animals, degrade crops, making them less marketable, and cause soil and water pollution. The problem of wind erosion can affect tailings dams in all types of climate, but becomes worse as climatic aridity increases. Because clouds of dust are often observed billowing across the top surfaces of tailings dams in dry windy weather, there is a common misconception that the dust arises from wind erosion of the top surface. As a result, much effort and money is vainly spent on treating the tops of tailings dams to prevent dust generation, whereas the slopes of the dams are the true major dust source. This paper briefly reviews what is known of erosion of tailings dams and then proceeds to describe the mechanics of wind erosion in general, and how it affects tailings dams in particular. Finally, recommendations are made for mitigating wind erosion of tailings dams and the resulting blowing dust.

Jan 1, 2007

By F. -Z. Ji, A. G. Irons, M. Barati, K. Coley

In order to optimize carbon injection into oxidizing slags, in terms of carbon and iron yield, we must have a detailed understanding of the kinetics of the reactions involved. The current study measures the rate of carbon oxidation during injection at steelmaking temperature by means of injections of coal into EAF slags. The compositions of analysed outgoing gas were used to calculate gas flow rate and hence the gasification rate of carbon. A fundamental equation to predict residual carbon in slags was developed. The predictions using this model at moderate injection rates are in good agreement with experimental data. The reaction rate of EAF slag with carbon is under mixed control by the slag gas and the gas carbon reactions. The relative importance of each step depends mainly on the v-ratio of slags. A relative reactivity parameter ? has been defined and it is found to be important to carbon-slag reaction kinetics and slag foaming. Key words: carbon-slag reaction, kinetics, slag foaming.

Jan 1, 2004

By M. du Plessis

This paper describes the evaluation of a limit equilibrium model to simulate the behaviour of crush pillars in platinum mines. An analytical model was derived to calculate the residual average pillar stress (APS) values of the crush pillars. The values predicted by this model were compared to the numerical values obtained from TEXAN simulations. In general, the limit equilibrium model appears to be very attractive for simulating pillar failure as the gradual crushing of the outside of the pillar and the transfer of stress to the intact core can be replicated. The value of the TEXAN crush pillar model was further demonstrated by simulating an idealized layout with crush pillars between two adjacent panels. The simulations illustrated that oversized pillars will not crush close to the face and this may lead to seismic failure in the back area. An important finding of the study is that closure measurements may prove to be a very valuable diagnostic measure in crush pillars layouts. Distinct differences in magnitudes of closure were simulated for a scenario where the pillars crush as expected, compared to the scenario where an oversized pillar is left. Experimental closure data collected in a crush pillar stope provided further evidence regarding the value of closure measurements in these layouts.

Jan 1, 2011

By R. Degel

Keywords: Pyrometallurgy, DC furnaces, electric smelter, FeCr, FeNi, FeMn, Si metal, ferro-alloys, platinum production, circular furnace, energy recovery system In 1906, the first submerged-arc furnace was supplied by SMS Siemag. Since then, the division has become established in various industries such as ferro-alloys and non-ferrous metals, and in numerous other special applications. During the evolution of this technology, more efficient units with longer lifetimes were developed. Today, especially the potential of DC-based smelters, raises worldwide attention, with some projects having already started to implement this kind of technology. This paper evaluates SMS Siemag?s general viewpoint regarding the potential application of DC smelter technology and possible options for the ferro-alloy and non-ferrous industry. SMS Siemag is currently executing a FeCr project in Kazakhstan, where four of the world?s largest closed-type DC smelting furnaces, with a power input of 72 MW, will be installed. These furnaces include the latest technological features of modern DC smelters, which are described in this paper. SMS Siemag has started a long-term research and development project allowing a direct comparison of AC versus DC technology on a large scale, using a recently installed 1 MVA test furnace at the IME at the University of Aachen, in Germany. For open-type ferro-alloy and Si-metal furnaces, SMS Siemag has developed an energy recovery system, which is presented in this paper.

Jan 1, 2011

By J. A. L. Napier

This paper presents an overview of work carried out by the CSIR Division of Mining Technology and formerly by the Chamber of Mines Research Organization (COMRO) to quantify the behaviour of the stope fracture zone near deep level goldmine stopes. The motivation for this work is first reviewed in the context of the unsatisfactory status of current mine layout design criteria. Numerical methods to represent failure processes are reviewed briefly. Specific studies of microfracture processes are described as well as physical modelling experiments that can yield insights into deformation mechanisms. Modelling of stope scale deformation mechanisms are presented and considerations relating to elastodynamic modelling of the rock mass are described. The implications of this understanding in relation to prospects for active fracture zone ?engineering? are outlined and finally, the directions of future research work are proposed.

Jan 1, 1997

By M. J. Leeuwner

Computational fluid dynamic (CFD) modelling is used to research the complex flow structures that exist in a hydrocyclone. By simulation of a two phase (water and air) flow system, the internal flow and multiphase interactions are investigated. The suitability of CFD modelling as a design tool is further evaluated by examining the effect of varying device dimensions. Three hydrocyclone geometries, used in previous studies, are specified. A transient simulation approach, which employs the Reynolds Stress Model as turbulence model and the Volume of Fluid model as multiphase model, is followed. Results are validated qualitatively against experimental measurements from the previous studies. Keywords: CFD modelling, hydrocyclone, Reynolds stress model, multiphase flow

Jan 1, 2008

By J. Forwood

The Youga gold mine in Burkina Faso, West Africa, is scheduled to produce first gold in the third quarter of calendar 2007. The project is expected to produce 540 000 oz of gold over 6.5 years, from a conventional open pit carbon in leach mine. The direct capital cost of the project is US$47 M. Etruscan Resources Inc, a Canadian based gold exploration and development company, holds 90 per cent of the project company Burkina Mining Company SA (BMC). The state of Burkina Faso is free-carried for the remaining ten per cent of BMC. RMB Resources Limited, of Melbourne Australia, has arranged a US$35 M project finance facility for BMC (the Borrower) as the majority of funding for the Youga project development. The loan facility was provided by RMB Australia Holdings and Macquarie Bank Ltd (the Lenders) each as to 50 per cent in the lending syndicate. The Lenders also provided a gold hedging facility to guarantee a minimum price for the project's gold production. Burkina Faso is a francophone country, part of the Economic and Monetary Union of West Africa (UEMOA). The project financing is the first such facility to be arranged for a mining project in Burkina Faso, with little or no precedent available in other UEMOA countries. Therefore, while the Youga gold project is forecast to be a robust project applying conventional mining and processing methods, a number of legal, technical, commercial and social issues required identification, evaluation and resolution before the loan could be established. This paper describes that evaluation process and the resolution of these issues. In-house experience and expertise in both the Lenders' and Borrower's teams has facilitated a greater understanding and `ownership' of the issues and hence provided comfort with risks which might not normally be taken in conventional project developments and project financings. As a result, blanket external reviews were not required by the Lenders. A long-standing relationship between Etruscan and RMB Resources also facilitated solutions to a number of issues. Nevertheless, a degree of flexibility by the Lenders, the Borrower and Etruscan was required to successfully close the financing.

Jan 1, 2007