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By C. J. H. Steenkamp

Theoretically, the main driver behind a mining operations? sourcing decision should differ from company to company, and within a company from project to project, but in reality it often relates to cost. Research confirms that there are a number of factors, including cost, to consider when choosing between in-house and outsourced mining. While the literature is rife with factors to consider, little information exists on how to apply these in practice and the relative importance of the different factors to be considered. A study was conducted to determine whether mining is truly a core competency for a mid-tier commodity specialist mining company. Furthermore, a decision-making framework for mining operations sourcing was developed, and the critical success factors that should be adhered to if outsourced mining is chosen were determined. The research showed that owner mining is not a core competency for the mining company investigated. A decision-making framework was developed using the order winner/order qualifier structure, which can be used to facilitate the mining sourcing decision. The most important tools at the disposal of a mine owner?s team to manage a contractor miner are the social and output control mechanisms, according to the critical success factors study.

Jan 1, 2014

By D. A. Singer, J. C. Griffiths

"One of the most useful approaches to a complex problem is to model the system which gives rise to the problem and to perform simulations through the model to find appropriate solutions. The Engel Model may be used as such a simulator to investigate the problem of the exploration for natural resources.The Engel Model is based on a two-stage search procedure in which a known area (A) which contains m prizes is subjected to search by n coverings. During the first-stage search the sensor system records signals which may be a response from prizes (that is, true signals) or may be false. Signals tend to cluster around a prize and a cluster size consists of s signals. If a circle of radius R is drawn around each signal some will overlap and the overlap from s signals contains a prize. The cost of a single covering in which each point of the area comes under observation once, is designated E1. Second-stage detailed search is expensive and is confined to areas of overlap of s circles; it leads to the location of prizes. Second-stage search of the whole area costs Ea units. The expected value, V, of a prize is known and its development cost is E3 units.The sensor system characteristics are defined by the circle of radius R around a signal, which should be small compared with the total area A and enters the model as a parameter a x R2/A. The probability of a false signal during a single covering of a circle of radius I is a known constant, A.This model was applied to the search for uranium ore bodies using two different types of occurrence. In the first, the Wyoming Basin type, the area is relatively large (A = 1 496 square miles) and a few (m = 4) large prizes occur (expected value V = $30 million). In the second area, which represents the Ambrosia Lake region of New Mexico, the area is smaller (A = 212 square miles) and contains many (m = 200) smaller prizes (expectedvalue of a prize V,$2 million). The three costs, E1, E2, E3, are adjusted to the different circumstances in the two areas.Simulations were performed using n = 1 to 40 coverings with cluster sizes s = 0 to 19; the radius R was varied from 0.52 to 3 miles (and, therefore, a = 0.002 to 0.133 0, respectively, dependent on the area of interest). The value of A was varied from 0.01 to 0.10.Profitable programs were found over a wide range of the parameters; the two areas required different strategies to achieve maximum profit. In the Ambrosia Lake region a few passes (n = 4 to 6) with small cluster sizes (s = 2 to 6) are more profitable, whereas in the Wyoming Basin region a large number of passes (n = 35 to 40) and cluster sizes of s = 5 to 10 are most profitable.As pointed out by Allais (1957) the larger prizes are the most important in deciding the successful outcomes of exploration programs, and the profit margin in the search for a few large prizes is sufficient to yield success over a wide range of programs. Such programs require very large investments if they are to be successful.To refine the Engel Simulator as a decision-maker in selecting the most profitable exploration programs it is necessary to obtain firm estimates of the sensor system characteristics, that is, of R, a and ? (lambda)."

Jan 1, 2014

By R. V. Ramani, R. Stefanko

"The favorable mining conditions in the United States of America that resulted in the development of the highly productive room and pillar systems are largely disappearing. Increasing mechanization, poorer natural conditions, and greater concern for health, safety and environment gave impetus to the enactment of the Federal Coal Mine Health and Safety Act of 1969. These regulations prescribe more stringent requirements in face ventilation and mine air distribution, necessitating significant changes in existing ventilation systems. Stringent mandatory standards were applied to respirable dust control for the first time, and simultaneous control of both gas and dust has affected the face as well as primary distribution, most notably on haulage entries.The size and complexity of the present-day mining operations, and the need to evaluate various system changes in a limited time, call for scientific methods in mine planning. In this paper, the authors trace the previous applications of computers to mine ventilation planning and discuss the results of their work in applying a ventilation simulator developed at Penn State. The paper includes an analysis of current trends and suggestions for future research and development."

Jan 1, 2014

By D. D. Ndenguma

This investigation compares the results from an experimental and numerical study of air flow in a scaled-down underground coal mine model. This was done in order to determine if numerical analysis can be relied upon when searching for ventilation solutions to control high concentration of coal dust and methane gas in underground coal mines. Steady state analyses were used to identify flow patterns and recirculation regions within the mining section while transient state analyses were used to determine the time taken to extract the initial air from the model. The agreement between the experimental and numerical results indicates that numerical modelling is useful in this regard. The study went further to devise a method of determining the optimum position of the jet fan that is responsible for mine-gas dilution at different stages of mining.

Jan 1, 2014

Mining is an inherently risky business; from the technical, environmental, social, and economic uncertainties associated with advancing an exploration prospect to a viable project to the operating, market, and safety risks and uncertainties attached to a developed mine. Since we cannot totally escape the risk and uncertainty related to resource projects, as an industry we should improve our presentation of the upside and downside risks in the context of the project?s development path and maturity. More transparent, consistent, and balanced views of technical confidence will better inform both internal and external stakeholders about the expected risk in the project. International reporting codes set out the minimum standards, recommendations, and guidelines for public reporting of Exploration Results, Mineral Resources, and Mineral Reserves. However, the reporting code principles of transparency and materiality are largely subject to the interpretation of the competent person(s), which may introduce a degree of subjectivity in reporting, particularly the level of disclosure regarding supporting information. It is fundamental that Mineral Resources, Mineral Reserves, and study outcomes are reported so as to unambiguously present the level of inherent technical uncertainty (or confidence) in a project, while conveying a balanced view of the opportunities a project presents. Reporting needs to consider various stakeholders who may rely on this information, and present the data in the context of the changing risk profile associated with project development paths and project maturity. This paper discusses the interdependence of resource-to-reserve conversion, the consideration of various technical-economic study types, and the level of confidence conveyed to stakeholders relying on these technical reports and other company public announcements.

Jan 1, 2014

By D. Nyungu

Despite observations of spalling and damage of mine excavation wall rock in the Bushveld Complex (BC) over the passage of time, there have been very few time-dependent or creep tests carried out in South Africa on rock, particularly on BC rock types. The research described in this paper deals with the investigation of stress and strain conditions influencing spalling of wall rock in BC mine excavations, and the influence of time on the tensile strength of several BC rock types. Time-dependent laboratory testing of BC rocks was carried out in indirect tension. The results show that the magnitude of the tensile strength of BC rock types is approximately 5% of their uniaxial compressive strength magnitudes. The average long-term uniaxial compressive strength of the BC rocks, interpreted from the axial stress-volumetric strain graphs, is 56% of the UCS value. The long-term tensile strength is shown to be less than 70% of the normal tensile strength. Extension strains at tensile strength failure ranged between 0.16 and 0.21 millistrain. Values corresponding with the long-term tensile strength are less than 70% of this range, namely, 0.11 to 0.15 millistrain. These results represent new knowledge, since such rock testing and analysis does not appear to have been carried out previously on BC rock types. Elastic numerical modelling was carried out to illustrate the extents of tensile stress zones and extension zones around of typical BC mine excavations. The models showed that large zones of extension strain can occur around BC excavations, and that the magnitudes of the extension strain can substantially exceed the critical values determined from the laboratory testing. The implication of this is that there are substantial zones surrounding BC mine excavations that will be prone to time-dependent spalling conditions and perhaps more significant failure.

Jan 1, 2014

By T. S. Kagogo

The factors affecting haul truck tyre performance and the effectiveness of the management system at Rossing Uranium Mine were investigated with the aim of increasing tyre performance in terms of running hours until failure. The main objectives were to identify the types of tyre failure, their causes and cost implications, and evaluate the effectiveness of the management system. A site severity survey, weight study, and TKPH studies were conducted to determine the pit conditions, and an analysis of failed tyres carried out. The results showed that tyre performance at the mine has declined from 2009 to date, and the increase in lost value amounted to R5.7 million in 2012 alone. The main cause of tyre failure is loose rocks in the pit. The present management system in the load and haul department is not effective enough due to operational constraints it is facing.

Jan 1, 2014

By C. A. Green, M. A. T. Cocquerel, R. T. Gates

"Engineering studies by Selection Trust, Limited, initially in connection with the development of a copper and nickel deposit for Bamangwato Concessions, Limited, and subsequently for several other clients, have required a large number of metallurgical design calculations. The flash smelting process, developed by Outokumpu Oy in Finland, has been selected as the most suitable method for these projects and the computer programs described in this paper have been developed to facilitate the computation.The data required by the programs arc the chemical and mineralogical analyses of the concentrate, gangue and flux materials and the specification of possible fuels. The required grade of furnace matte is set as the main design parameter and the programs calculate detailed heat and material balances for the smelting process."

Jan 1, 2014

By S. Stuurman

Inorganic acids such as sulphuric acid have found use together with certain reducing agents in leaching of copper-cobalt oxide ores. These reagents are not ideal due to the adverse effect the inorganic acids generally have on the environment and the high costs of the reducing agents. In this study a copper-cobalt oxide ore from the Central African Copperbelt was leached in two different environments; sulphuric acid in conjunction with hydrogen peroxide as a reducing agent and tartaric acid. The effects of acid concentration, reducing agent concentration, and temperature were independently determined for both leaching environments. The sulphuric acid concentration was varied between 0.4 M and 1.2 M and the concentration of hydrogen peroxide between 4.0 M and 6.5 M, while the tartaric acid concentration was varied between 0.15 M and 0.35 M. The temperature was varied between 20°C and 50°C. The results showed that the extraction of both copper and cobalt increased with sulphuric acid concentration, reaching a peak at approximately 0.8 M and then decreasing at higher acid concentrations. A similar increase and decrease in metal extraction was observed when the reducing agent was increased. In leaching with tartaric acid, the extraction of cobalt was much higher than that of copper, although extraction of both metals increased with acid concentration. Additions of small amounts of hydrogen peroxide were found to increase cobalt extraction in tartaric acid but had a minimal effect on copper. An increase in the solution temperature had a significant effect in the organic acid environment, with the effect on cobalt extraction being much more pronounced than on copper.

Jan 1, 2014

By P. K. Hofmeyr

Traditional fire assay dates back over 3000 years and has changed very little over that time. The only improvement is to replace the gravimetric finish with dissolution of the Precious Metal bead followed by AA or ICP analysis of the solution. The newly developed FIP A (Fast In-line Fire Assay) method allows full automation of the fire assay process from sample preparation to spark analysis of the Pb button. This results in fully quantitative analyses for Pt, Pd, Rh, Ru, lr, Au and Ag in typically less than an hour after a sample is entered into the system. Detection limits are theoretically Pt 0.08 ppm, Pd 0.002 ppm, Rh 0.002 ppm, Au 0.08 ppm and Ag 0.002 ppm but in practice the lower measurable limits are about double these figures. Few opportunities have been available to present data obtained using the FIFA system as all FIFA laboratories have been in the domain of a Pt mining company which prefers to keep all Pt analytical matters confidential. However, IMP has recently participated in the round robin exercise to establish recommended values for a new series of Merensky Reef and UO-2 Layer reference materials produced by African Mineral Standards. The precision of the results was excellent being on average Pt 2.05%, Pd 1.25%, Rh 4.08% and Ru 4.94% being expressed as Relative Standard Deviation. The excellent precision is a reflection of the efficient collection of POEs in the Pb buttons and the homogeneity of the Pb buttons. However, the accuracy was not as good. The poorer accuracy is interpreted as the calibration of the spectrometer not being as good as desired due to the difficulty in acquiring a suitable range of standards with reliable recommended values for the PGEs. The most recent spectrometer was calibrated with the greatest care and produced slightly better results for Pt, Pd and Rh and slightly worse for Ru.

Jan 1, 2014

By G. A. Bezuidenhout, S. Bradshaw, W. Malan

"Currently, the matted-based collection process is most widely used for platinum group metal (PGM) recovery. However, because PGM-containing concentrates are becoming more enriched with UG2 (Upper Group 2) low-grade concentrates, this is expected to be integrated or replaced with an alloy collection process.The reduction LG (low-grade) concentrates with silicon carbide (SiC) was investigated. The purpose of the study was to ascertain the feasibility of using SiC as reductant with regard to metal fall, PGM grade in the alloy, slag composition, and overall PGM recovery, and if possible, the integration of such a process in the current matte-based collection process. Rowland and Easterns LG concentrate samples from Lonmin were analysed by Xray diffraction (XRD), X-ray fluorescence (XRF), and inductively coupled plasma mass spectrometry (ICP-MS). It was found that SiO2 and MgO are the most abundant oxides and Pd is the most abundant of the PGMs. Sulphide-bearing minerals such as chalcopyrite were detected in low concentrations (below 1%), and Cr2O3 concentrations are between 2-4%. SiC reduction of Rowland and Easterns concentrate were conducted at 1600°C with reductant to concentrate ratios ranging from 2.5 to 3.5 kg SiC per 100 kg concentrate.The reduction experiments revealed that PGM recoveries from Rowland concentrate were poor. SEM images showed entrained metal prills in the slag phase. The slag viscosity at the end of the melt was calculated by using FactSage, and the results indicated that the viscosity was higher than 4 poise, which is above that of Easterns slag. PGM recoveries for Easterns concentrate were significantly better. More than 85% of the Ir and Pd and almost 60% of the Pt were recovered in a test with a reductant to concentrate ratio of 3.5 kg SiC per 100 kg Easterns concentrate. At this reductant to concentrate ratio, Fe recovery was also the highest, at 66%. SEM imaging of a slag sample revealed few or no metal prills entrained. The FeO content in the initial concentrate charge was then increased by adding Peirce-Smith converter slag in order to decrease the slag viscosity and further increase PGM recovery. A test was conducted with the addition of 10 kg converter slag per 100 kg Easterns concentrate. The reductant to concentrate ratio was kept at 3.5 kg SiC per 100 kg Easterns concentrate. The Ir and Pd recoveries were more than 95%, while Pt recovery was almost 70%. Fe recovery increased to 76%. On the basis of these results an optimum feed ratio between Easterns and Rowland concentrates and Peirce-Smith converter slag were calculated. FactSage predicted that the concentrate charge should consist of 70-80% Easterns concentrate with 20-30 kg converter slag per 100 kg LG concentrate. SiC reduction of this optimum LG concentrate charge is expected to recover more than 90% of all PGMs. Cr and Si concentrations in the alloy will be below 1% in total.The effectiveness of SiC as reductant was also compared to carbon reduction. Carbon reduction of an optimum concentrate charge at the same reductant to concentrate ratio resulted in a marginally higher metal fall than SiC reduction. However, gas emissions and energy requirements are higher for carbon reduction.The study has shown that base metals and PGMs can be recovered in an iron alloy by SiC reduction of LG concentrate with converter slag additions. Integration of such a process into the matte-based collection process could be considered as a future alternative for smelting UG2 LG concentrates."

Jan 1, 2014

By A. Galibois, A. Dubé, H. Monette, J. L. Collins

"The start of mining operations often raises serious financial problems. In marginal cases promoters frequently demand financial aid from governments.In the past, the financial assistance has taken the form of gifts, procurement contracts, etc., but aid in such form has been severely criticized. A new formula has been developed to provide a more equitable distribution of the revenues accruing to the government and to private capital.The benefits to these two parties have been evaluated in an hypothetical case and compared in terms of internal rates of return on their investment, their shares of the undiscounted cash flows and their primary profits.The method based on the non-zero sum game theory provides a means for suggesting the lowest feasible annual production and the optimal sum contributed by the government in the form of outright gift, equity capital and convertible bonds. Other financial hypotheses can also be optimized by the computerized analysis."

Jan 1, 2014

By M. Maleki

Variogram analysis and kriging lack robustness in the presence of outliers and data with long-tailed distributions, which often arises when estimating grades in precious metal deposits. The capping technique, consisting of truncating the data to some top-cut grade, is widely used in order to mitigate the influence of the values in the upper tail of the distribution. However, this procedure omits part of the grade variability and is likely to provoke a bias in the estimates. To avoid these issues, a recently proposed approach is to decompose the grade of interest into three components (the truncated grade, a weighted indicator above the top-cut grade, and a zero-mean residual) and jointly estimate the truncated grade and the indicator by cokriging. This approach is attractive as it provides unbiased grade estimates, allows choosing the ?optimal? top-cut value, and essentially works with truncated and indicator data, thus avoiding the use of outlying values for calculating sample variograms and performing spatial interpolation. This work presents an application of this approach to a disseminated gold deposit that has been identified through exploration drilling. The effect of using an indicator covariate is assessed through leave-one-out cross-validation, by comparing the grade estimates with the true grades and with the grade estimates obtained with the conventional capping approach, which considers only the truncated grade as the variable of interest. As a result, cokriging the truncated grade and the indicator above top-cut grade outperforms the conventional capping approach, yielding significantly more accurate estimates. A few complementary guidelines are provided for validating the model hypotheses and for the implementation of cokriging.

Jan 1, 2014

By N. Sahay

Open fire in coal mines is one of the most serious threats to miners, as well as to the mine. Open fire can often be effectively dealt with by prompt local action, otherwise it very quickly becomes uncontrollable. In one incident, none of the available open fire control technologies, viz., water deluge and sprinkler systems, high-expansion foam, high-pressure high-stability nitrogen foam, water misting, and ventilation and pressure control techniques, were effective for saving the mine without sealing from surface, since the fuel-rich environment prohibited underground access due to the methane explosion hazard. The authors have developed a methodology for dealing with advancedstage open fires underground by the application of a modified ventilation control technique. It is based primarily on a better understanding of the behaviour of open fires, proper diagnosis of the problem, application of judicious ventilation control techniques, and selection of suitable fire indices for assessing the status of an open fire. This methodology was used to successfully control an open fire in Surakachhar 3 and 4 incline mine Surakachhar, central India. The fire area was sealed underground and production subsequently resumed in record time. The paper discusses the behaviour of open fires, particulars of the mine, diagnosis of the problem, experimentation methods, and the results obtained.

Jan 1, 2014

By C. Thiart

Kriging is an interpolation technique for predicting unobserved responses at target locations from observed responses at specified locations. Kriging predictors are best linear unbiased predictors (BLUPs) and the precision of the BLUP is assessed by the mean square prediction error (MSPE), commonly known as the kriging variance. Both the BLUP and the MSPE depend on the covariance function describing the spatial correlation between locations and on specific parameters. The parameters are usually treated as known, whereas in practice they invariably have to be estimated and the empirical BLUP (that is, the EBLUP) so obtained. The empirical or estimated mean square prediction error (EMSPE), or the so called ?plug-in? kriging variance estimator, underestimates the true kriging variance of the EBLUP, at least in general. In this paper five estimators for the kriging variance of the EBLUP are considered and compared by means of a simulation study in which a Gaussian distribution for the responses, an exponential structure for the covariance function, and three levels of spatial correlation ? weak, moderate, and strong ? are adopted. The Prasad-Rao estimator obtained using restricted or residual maximum likelihood (REML) is recommended for moderate and strong spatial correlation and the Kacker-Harville estimator for weak correlation in the random fields.

Jan 1, 2014

By John W. Harbaugh, Alfredo Prelate

The goal of the study described here is to develop objective. quantitative methods for estimating the outcome probabilities of exploratory oil wells. The study employs the 're-experience' approach, in which historical data are used in a manner which attempts to recreate the past. Our past experience, of course, is the principal guide to the future. To appraise present-day oil prospects, however, we must analyze prospects that have been drilled in terms of how these former prospects were interpreted before they were drilled. An analysis of how they are interpreted after they were drilled is an inadequate guide to the future because our hindsight knowledge is superior to our foresight knowledge. Objective calculation of future outcome probabilities, then, requires that we attempt to treat past information in a manner analogous to that in which we must treat present information in forecasting future outcomes.

Jan 1, 2014

By N. C. Joughin

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.

Jan 1, 2014

"Chairman: Professor B. W. MacKenzieRapporteur: Professor D. A. PretoriusPapers:Optimum spacing for soil sample traverses by W. A. HodgsonEvaluation of geochemical data by C. J. LenzResearch in oil exploration decision-making by J. W. Harbaugh and A. Prelat A drill hole data bank by M. R. AndertonOre reserve estimation and depletion planning for a beach diamond deposit by M. M. OosterveldIn opening the session, the Chairman indicated that the papers and discussions would revolve about quantitative methods of analysis and optimization of various aspects of exploration planning. The five papers would cover a wide range of topics within a general theme of exploration analysis, and it would be appropriate, therefore, to present the. papers as representing a sequential information-gathering process, namely, (i)geochemical and geophysical types of surveying for the location and identification of anomalous zones, (ii) tren¬ching and drilling of the anomalous zones found, and (iii) further refinement of the data for ore reserve calculations and production planning.The first paper, which was presented by Dr W. A. Hodgson, dealt with the optimum spacing between soil sample traverses conducted during geochemical prospecting. The theme of the paper was that the critical sampling interval should be based on the concept of element continuity, and that this interval could be determined by means of a correlogram. Ensuing discussion concerned the probability of the method, designed for areas where dispersion was high, working in localities where dispersion was either low or virtually non-existent. In the latter eases, specific orientation surveys for varying topographic, climatic and geological conditions would possibly be more useful than the preparation of correlograms. A further suggestion was made that cost versus risk should be taken into consideration when deciding upon the spacing between traverses. A balance could be struck by mathematical optimization. If the exploration budget was fixed, then the variance of risk could be minimized.The second paper was a short contribution by Mr C. J. Lenz. Computer-based plotting and evaluation of geochemical prospecting results were carried out because the low cost of analysis in Rhodesia permitted very large volumes of data to be accumulated in mass-coverage operations. Anomalous areas were demarcated within different environments by selecting probability or population boundary values from frequency distributions. In the short discussion which took place it was debated whether the method should be used only in the early high-risk stages of geochemical exploration and whether the introduction of geological bias could influence the actual results of an exploration program."

Jan 1, 2014

By R. J. Hundermark, L. R. Nelson

The critical importance of tap-hole design and management to furnace performance and longevity is explored through examining some of the specific matte, metal and slag tapping requirements of non-ferrous copper blister and matte converting and smelting, ferroalloys smelting and ironmaking systems. Process conditions and productivity requirements and their influence on tapping are reviewed for these different pyrometallurgical systems. Some critical aspects of the evolution of tap-hole design to meet the diverging process and tapping duties are examined. Differences and similarities in tapping practices and tap-hole management are reviewed. Finally core aspects of tap-hole equipment and maintenance are identified that are considered important to securing improved tap-hole performance and life, so pivotal to superior furnace smelting performance.

Jan 1, 2014

By Anders Erlandsson

"The crude ores from the LKAB mines are sorted and refined into a number of products. As there are a number of different plants the flow of material is often complex.in connection with studies of a proposed extensive investment program it was necessary to get a good measure of the changes which would be caused in the total profit by the different possible investments. A linear programming model was set up to accomplish this, and to cover the consequential effects on the production system. The objective function of the model maximized the total profit, taking into account restrictions in materials balances, blending conditions, production capacities and market. The changes in total profit resulting from the different investment alternatives, together with investment and fixed costs, were used in a series of investment analyses. The application has proved to be very successful and the results come very near to what was expected."

Jan 1, 2014