Technological Innovation and its Potential Effect on the Opening of New Gold Mines in South Africa

A simplified economic model is derived for the financial return from a new gold mining project. The model is used to analyze the effects of changes in the mining rate, capital costs, working costs, value of the reef and the stoping width. The most effective avenues for improving the return from a new project are indicated. It is shown that those technological innovations which would improve the return significantly, and therefore make it possible to open more mines, are the use of smaller mines, means for improving the mining rate to capital costs ratio for smaller mines, planning and control of mines by computer simulation, an improved mine valuation procedure and means for mining at a decreased stope tramming width.