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By C. Birch

"A mineral resource royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In South Africa, this payment is made to the State as holder of the mineral rights (The Mineral and Petroleum Resources Royalty Act of 2008). The principle purpose of this research paper is to identify if the State is benefitting from the mineral resource royalty by considering its impact on seven individual Witwatersrand gold mines.For this study, a simple financial optimiser model was created in Microsoft Excel that links the ore flow, block listing and the cash flow (excluding or including the cost of the mineral resource royalty). Mixed integer linear programing (the Excel Solver function) is utilised to optimise either profit or NPV (at 9% and 12%) by adjusting the cut-off grade.The impact on each of the seven mines mine was different but overall R7.9 billion is estimated to be paid in mineral resource royalty over their expected remaining lives. Due to the cost of the mineral resource royalty and increasing the cut-off grades, the total revenue decreases by R10 billion. A significant portion of this lost revenue would have been paid to the State in the forms of other taxation including company income tax which decreases by R2.8 billion. It is recommended that an industry wide investigation be conducted to determine if the resource royalty is adding to the State’s revenue, or destroying value including premature job losses. IntroductionTaxation of mining companies has become a very topical subject in the context of the postapartheid South African economy. There have been increasing calls for equitable re-distribution of mineral asset wealth for the benefit of all South African citizens and not just to an elite few. As part of the Mineral and Petroleum Resources Development Act (MRDPA) of 2002, the Mineral and Petroleum Resources Royalty Act of 2008 was introduced and came into effect in 2010 (South African Revenue Services, 2008). A mineral royalty is payment to the holder of mineral rights for the utilization of the mineral resource. In the case where the holder of the mineral right is the State, then this payment is made to the State (Cawood, 1999). Studies on the potential impact of the mineral resource royalty on the minerals industry have been conducted during the formulation of the Act and subesquently. These include Cawood and Macfarlane (2003), who suggested a cap of no more than 3% (Cawood and Macfarlane, 2003), as well as Cawood (2011), who predicted rising cut-off grades and thus reducing mineral reserves. In 2013, Grobler completed a Masters in the Faculty of Economic and Management Sciences at the University of Pretoria and concluded that the impact of the mineral resource royalty on the economy is positive. She stated that the royalty has caused operating expenses to increase, but this does not appear to be significant. Furthermore, she stated that the royalty has not affected the way the mining industry operates (Grobler, 2014)."

Jan 1, 2016

By Ri McCrindle

"Analytical Chemistry is moving rapidly towards a concept where technicians have to do no more than press a button and print the result from an instrument that is a featureless ""black box"". In this environment we must ask how much traditional ''wet chemistry"" is still required for undergraduate students.Methods that can be fully automated will become increasingly important. An example of such a method is that of the slurry nebulisation and ICP-OES analysis of precious metal concentrate. Grinding the sample and adding Triton X100 as dispersant, complete analysis time is in the order of 90 min as apposed to the traditional Carius tube method which could take as long as 24 h. For most of the elements studied, the results using ""in-house"" reference material for calibration and as samples as well were within the 95% confidence level. Elements of low concentration in the sample (As, Bi and Se) were not within that level."

Jan 1, 2014

By D. F. Malan

In deep level hard rock mining the rheological behaviour of the rock is important as time-dependent aseismic processes can lead to a stable dissipation of energy thus reducing violent outbursts. Underground closure measurements, observations of time-dependent fracture formation and siesmic data indicate that the rock in deep South African gold mines shows significant time-dependent behaviour. The objective of this work is to quantify the time-dependent rock behaviour for laboratory specimens and underground conditions. Laboratory experiments indicated that lava and quartzite specimens undergo measurable creep strain at stress magnitudes below the failure stress. Quartzite is however prone to more significant creep at lower stress levels. A viscoelastic analysis showed that laboratory creep results can not fully explain the behaviour observed underground. The in situ behaviour is governed mainly by the rheological behaviour of the fracture zone and the resulting time-dependent formation of new fractures. A viscoplastic discontinuity model implemented in a boundary element program is used to simulate this behaviour.

Jan 1, 1997

By H. Ozturk

In this paper, the computer program ‘SHAFT’ developed for estimation of support requirements for circular mine shafts is introduced. Theory of support design is based on the analytical solutions of circular excavations under non-hydrostatic loading (Detourney and St. John1), and Lame’s thick-wall cylinder theory (Timoshenko6). For rock mass strength property determination Hoek-Brown failure criterion (Hoek et al.2) is used. Mainly two types of support, concrete and steel are taken into consideration as a support member. Program is written in Quick Basic language. Input parameters of the program are shaft radius, number of zones having the same properties along the shaft depth, and depth, unit weight, horizontal to vertical stress ratio, GSI, and uniaxial compressive strength of intact rock of each zone, and compressive strength and safety factor of support member. Output of the program is the graphical representation of shaft with the required support member and thickness throughout the depth of the shaft.

Jan 1, 2003

By H. A. Uys

The metallurgy of tin smelting In a submerged arc furnace By H. A. UYS, Ing. Metallurgy (Pretoria) (Visitor) The control of tin smelting demands a knowledge of slag characteristics and of the equilibrium reaction that governs the process. These factors are explained by reference to the tin-smelting operation at Iscor, Vanderbijlpark. In the primary cycle, it is important to obtain the highest possible FeO content in the slag. In the secondary cycle, a primary slag high in FeO gives a hardhead (iron-tin alloy) high in iron, which is essential if a high ratio of FeO to SnO is to be obtained in the secondary slag. This determines the economy of the smelting operation: the iron that is introduced into the system from the ore concentrate must go out in the secondary slag. Additions of lime are necessary in the secondary cycle but must be limited if the volume of slag is to be kept Iow.

Jan 1, 1977

Prediction of the performance of explosives In bench mining by C. M. LOWNDS, B.Se. Hons (Rhodes), Ph.D (Cape) (Visitor) Some of the problems encountered in the calculation of the relative weight strength of explosives are discussed, and a realistic model of the behaviour of explosion products in a borehole is proposed. The heat flow from condensed to gaseous products is calculated as a function of time, and the relationship between the pressure and the volume of the product gases is found by a consideration of the compression of the rock between radial cracks. Work done on the burden is assumed to cease when the cracks first appear at the face. Reasonable values of burden and crack velocities are obtained from the model. Calculations of the relative weight strengths of aluminized mixtures of ammonium nitrate and fuel oil show that the increased density resulting from the addition of aluminium is the main advantage to be gained.

Jan 2, 1975

By L. A. Cornish, B. Eatwell

Austempered ductile iron (ADI) is a ductile iron which has had its matrix toughened by an austempering process. The alloy exhibits remarkable properties, which it owes to a unique microstructure comprising graphite nodules embedded in a matrix of acicular ferrite and carbon-enriched austenite. The properties include high strength combined with high toughness and ductility. Excellent wear resistance is also exhibited because, under strain, the austenite is transformed locally to martensite. Samples of ductile iron were austempered to produce grades I and IV AD!, and were tested at various strain rates. The grade IV ADI exhibited higher strengths and lower difficulties, and the strengths were found to be more dependent on strain rate. Transformation to martensite was more prevalent at the lower strain rates. A mechanism of increased flow stress and work hardening in the austenite of the matrix is proposed to explain the higher strength of the samples at high strain rates, where significantly less martensite is formed in the matrix.

Jan 1, 1995

By H. S. Sichel

Statistical valuation of diamondiferous deposits By H. S. SICHEL, D.Sc The valuation of diamondiferous deposits depends on (i) the density distribution, (ii) the size distribution of stones and (iii) the selling price structure prevailing at a particular time. In the density distribution the stochastic variable is defined as the number of individual stones found per sample unit irrespective of the stone size. The density distribution is discrete and allows for barren sample units. As diamonds often occur in clusters, a Poisson mixture distribution is derived which is entirely new, as existing discrete distributions cannot represent the stone number frequencies found in nature. For the sizes of diamonds, which are measured by weight, a new compound logarithmic normal distribution is developed. Combination of (i), (il) and (iii) leads to a meaningful appraisal of diamondiferous ground expressed in monetary value per production unit of mining. Finally, confidence limits are calculated which allow for inferences from sampling to recovery.

By J. -M. Chautru

A geostatistical simulation of a typical mining site for polymetallic nodules in the North Pacific Ocean is presented. This is the first stage in the design of an industrial mining system. Two variables which have a major effect on the orebody's economic potential are considered, namely: the maximum slope of the ground inside a mining block of 50 x 100 m; and the average quantity of nodules on the same support. Two geostatistical problems have emerged in this study. The first is due to the lack of a change of support model for the maximum of a variable. A provisional solution, considering an experimentally accessible 'equivalent' support, is proposed. The second is due to a non-linear link between the two variables. To be able to take this into account in the simulation, we propose a new method based on the decomposition: X = E(X/Y) + Residue (X). Satisfactory results were obtained with this approach.

Jan 1, 1987

By E. Minnaar, P. J. Cilliers, M. Bellino, L. M. Roux, R. Dye

The classic technique to remove impurities in a cobalt stream is selective precipitation. This is usually followed by re-leaching to produce an advanced electrolyte for cobalt electrowinning. Although this technique ensures an adequate cobalt concentration in the electrowinning circuit, some of the consequences include unwanted losses through the numerous selective precipitation steps resulting in lower recoveries. One plant that currently utilizes selective precipitation is the Luilu Metallurgical Plant (Luilu) in the Democratic Republic of the Congo. This paper evaluates the benefits of using solvent extraction technology as a purification step in the Luilu Process with the aim of further increasing the overall cobalt recovery and to ensure that a suitable cobalt concentration in the advanced electrolyte is achieved. The implementation of a solvent extraction-electrowinning process is found to be beneficial in terms of achieving improved recoveries and cobalt cathode quality, however there are many other factors that impact the success of converting from the classic precipitation process used at Luilu.

Jan 1, 2007

By P. J. D. Lloyd

This fascinating paper deserves study by all who are interested in the economics of gold production. The argument in the paper that price is determined by the balance between supply and demand may be thought to be obvious. However, correlation analysis presumes causality, and there is some evidence in the paper to suggest that causality is absent in this market.

Jan 1, 1984

By B. K. Loveday

There are certain ores that can be treated without upgrading (e.g., gold and uranium ores), and upgrading needs to be considered only for fairly low-grade ores of this type. If the grade is very low, treatment will not be economic even with upgrading, and there is therefore a limited range of ore grades for which upgrading is suitable.

Jan 1, 1980

By F. J. J. Blaauw

This paper discusses a bold venture into the use of interactive computer graphics technology as the foundation of an overall integrated mining managerial system. The wide range of applications that can be addressed through the use of this technology is highlighted, and some discussion of the major facts of this project, which is still in its early stages, is provided.

Jan 1, 1987

While some of the practical details of ilmenite smelting are not well documented, there is a substantial body of literature on the principles of ilmenite smelting, and the behaviour of solidified titania slag. This information is summarized, focusing on the basic reactions, departure from equilibrium, the behaviour of impurities, and reactions of solidified slag. The emphasis is on the South African operations.

Jan 1, 2007

By P. den Hoed, J. Nell

Tests were conducted on samples of rutile, titaniferous slag and ilmenite; each sample was mixed with coke and chlorinated in a bubbling fluidized bed at 1000°C. Profiles of the rates of chlorination of species were constructed from chemical compositions of the bed residues at different durations. From the start FeO and MnO are chlorinated quickly and all but entirely in a fraction of the time it takes to chlorinate all the TiO2. When the level of FeO is significant, as in slag and ilmenite, FeO is chlorinated faster than TiO2is. In these oxides, there is an inverse relationship between the rates of chlorination of FeO and TiO2during this first stage; the relationship, moreover, correlates linearly with the initial percentage of FeO in the oxide. We identify three stages in the chlorination process; a first, in slag and ilmenite, when FeO is being chlorinated; a second, when TiO2is most readily chlorinated; and a third, towards the end, when the levels of TiO2are reduced to those of other species. The rates at which individual species are chlorinated are analysed in terms of their appreciation or depreciation with respect toTiO2

Jan 1, 2003

By P. R. Labrum, H. A. D. Kirsten

The literature on shotcrete is reviewed with the object of identifying aspects that have not been addressed specifically in terms of its structural performance and manufacture as applied to underground mines. The programme and results of a series of full-scale tests on mesh- and fibre-reinforced shotcrete panels are presented, from which it is concluded that fibre-reinforced shotcrete is competent, especialy at large deformations, and is equivalent in structural performance to mesh-reinforced shotcrete for a fibre content of 3 per cent by mass: furthermore, that the support design systems developed for mesh-reinforced shotcrete are directly applicable to fibre-reinforced shotcrete. The Q-NATM system for the design of temporary tunnel support is presented briefly as one such system. It provides for the integrity of the excavation to be considered in terms of its competence and displacement determinateness, and represents the first systematic procedure for the design of temporary tunnel support. Finally, the support designed on the basis of the Q-NATM system for the main and cross-cut tunnels on the production level in the proposed BA5 block cave at Premier Mine is presented as a practical example of the design of fibre-reinforced shotcrete as part of an overall support system.

Jan 1, 1990

By Q. G. Reynolds

The problem of direct-current plasma arc behaviour, interaction, and dynamics is considered in the context of metallurgical DC arc furnace applications. Particular attention is paid to the transient flow behaviour of arc systems. A mathematical formulation of the physics used to describe the arc system is presented, and includes the spatial and temporal evolution of fluid flow, heat transfer, and electromagnetism. Based on this formulation, a numerical model is developed using a finite difference approach on a regular cartesian grid in both two and three dimensions, with a special focus on robust stability, high resolution modelling, and high performance. A collection of results produced using the numerical model to study pilot plant-scale furnaces is then presented. These address a range of process and design variables and their effect on the numerical model?s results. Where possible, the qualitative behaviour of the model is compared to available experimental data. A number of novel effects and phenomena are seen in the dynamic behaviour of the DC plasma arc model for both single and multiple arc systems, which may lead to improved understanding, control, and manipulation of such systems where they occur in industrial applications. Keywords Pyrometallurgy, direct-current furnace, plasma arc, modelling.

Jan 1, 2010

By L. Holappa

Ferroalloys like FeCr and FeMn are mostly produced in submerged electric arc furnaces. Typical of these processes is that the amount of slag is quite high. The role of slag for the process is thus essential and specific chemical, physical and electrical properties are required. Slags in FeCr process are Al2O3-MgO-SiO2 based with minor contents of CaO and CrOx. Slags in the FeMn process are principally similar, originating from silicate minerals but can have quite large composition range depending on the manganese ore and its gangue minerals. Characteristic of the FeMn process is that the slag is rich in manganese oxide up to above 30%. A common feature is that the ?ore oxides?, CrOx and MnOx in slag are not only divalent oxides but also contain some higher valent of Cr3+and Mn3+, respectively. In FeMn production conditions the slag consists mainly of Mn2+. This is a clear difference from CrOx containing slags in which both two and three valent coexist in slags in FeCr process conditions. Oxidation state of the slag depends on the ambient oxygen partial pressure and temperature in the examined process. The thermodynamics of slags in ferroalloys, production are discussed in terms of phase diagrams, activities and oxidation state of chromium and manganese oxides. Further, slag properties influencing reduction kinetics and furnace operation i.e. viscosity and electrical resistivity are discussed. Keywords: review, slags, ferroalloys, ferrochromium, ferromanganese, thermodynamics, physical properties

Jan 1, 2004

By J. R. Cole-Baker

An independent technical audit by a consultant is part of the accountability process of publicly owned or publicly quoted companies when raising finance through share issues or loans or the sale of equity, and of banks or development funds when granting loans. Africa is undergoing a renaissance in investment in its mining industry. It is forecast that capital investment, in major mining projects in Africa, will be over US$ 4.4 billion, in the next few years. Most, if not all, of the capital to be raised will require an independent technical audit. The aim of this paper is to assist the management of mining companies seeking finance in appreciating the role of such technical audits. The reasons for such audits, especially to attract international investment, are listed. The role of the audit is explained in assessing the underlying robustness of the company as ?a going concern? and the viability of any ?expansion plans?. Its use is emphasised in establishing the underlying value of the company based on the mine life as supported by the mineral reserves. The independent consultant role is stressed as a representative of the parties in a finance deal who cannot, in practice, carry out their own detailed and specialized technical due diligence. The various components of a typical audit are examined with examples of critical matters which may require resolution. The definitions, which are used commonly in audits, in respect of competence and reserves and resources, as stated by various regulatory bodies, are compared.

Jan 1, 1998

Statistical summary of the mineral industry world production, exports and imports 1964-1969 Published by Her Majesty's Stationery Office, London, on behalf of the Institute of Geological Sciences (1971) The Statistical Summary contains a wealth of care fully garnered information on the production, exports and imports of the principal minerals and mineral products throughout the world for the period 1964-1969, and it should therefore be of particular interest to economic geologists and others concerned with marketing and selling minerals. In view of the intractable nature of the source data it is quite an achievement to have published figures for 1969 so expeditiously. On picking up the Summary this reviewer instinctively compared it with the Annual Yearbook published by the United States Department of the Interior. The Yearbooks have been issued annually since 1882, and today each consists of a set of three separate books containing five volumes. Apart from abundant statistics on the domestic and international mineral industries, the Yearbooks are known for their perspicacious reviews and articles on a host of different facets of the world's minerals industry. Physically the Summary is a much slimmer publication than the Yearbook, and it contains no commentary whatsoever other than occasional footnotes. The principal contents are a series of tables showing production, exports and imports of fifty-nine of the world's more important minerals and mineral products. Each table shows the weight of the material produced or traded, by countries, with figures for each of the six years in adjoining columns. In some cases (e.g. diamonds) values in British currency are quoted in addition to weights. Most of the data have been abstracted from national reports and returns, although in some instances estimates are quoted where national sources are silent--as for example the production of platinum in South Africa. One wonders in passing if any useful purpose is served by the continued suppression of this particular figure. The four South African producers must surely be able to estimate each other's production fairly accurately by now, and one imagines that the national export figures can likewise be synthesised. This reviewer has two minor criticisms of an otherwise praiseworthy publication. Firstly it seems an unnecessary anachronism to perpetuate the split between 'Commonwealth' and 'Other' countries-the split can have little practical significance today. Secondly, what is one to make of the statement that the 1966-1969 figures for exports from Rhodesia of chrome ore and copper, to take two examples only, are 'not available'? It seems improbable that no estimates of these figures have been made since the imposition of sanctions, and inevitably one suspects that the figures have been excluded on policy grounds. Hopefully this problem will have been solved when the next Summary is published. M.J.M. South Africa, land of Challenge by Maurice Tyack France Interpresse, 323 pages, price R18-00. Is South Africa God's richest acre? In its mineral wealth it certainly is, but what of the many other complex overlays of emotions, traditions and racial problems? South Africa, Land of Challenge, provides the background. This is reported to be the first comprehensive documentary work of its kind on South Africa. It is a handsome volume measuring 12ft by 9f', is illustrated by at least 600 photographs of South Africa, more than half of which are in colour, and contains 21 original maps and charts. The book covers the full spectrum of South Africa's very existence, its geography, pre-history, its customs, countryside, natural resources and its cities. The more controversial categories are thoroughly discussed, the people, their policies and politics. Mr Tyack is eminently qualified to write on South Africa, being the author of over 20 books on other African countries and having spent more than three years of research, in the field, in South African archives and also in various libraries and museums, in preparation for this book. The book claims to be free of any party political bias and appears to be an honest attempt at a factual survey. However, a work of this magnitude will undoubtedly leave an impression on the reader and the tone of this book is decidedly patriotic. This is a useful reference work on South Africa that most South Africans will be proud to own. J.P.H. Ergonomics and physical environmental factors This publication by I.L.O. of a symposium in Rome in September 1968 has much useful information for the mining industry in regard to the health and productivity of its labour force. The first subject dealt with is mechanical vibrations. From this section it is clear that men who drive, for many hours each day, vehicles which vibrate in the 6 Hz range are subject to serious physiological and psychological effects. The former may show as changes to the vertebral column (which has a resonance in the 4-5 Hz range). The circulatory system is adversely effected by values in the 6-10 Hz range and the vision is impaired at between 40-100 Hz. Less definite knowledge exists of the effects of vibration on the hand-arm system from mechanical drills etc, although Raynauds disease of the blood vessels of the hand and degenerative diseases of the elbow and shoulder joints occur in men using drills which vibrate, respectively, in the higher and low frequency ranges. Industrial noise is extremely well dealt with and the latest knowledge is summarized. Clear information is given on the relationship between time of exposure to