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By G. R. Lane, A. Vermeulen, S. van de Venter, S. Bhoowanpursadh

Over the past two years Anglo Platinum made use of the specialist skills of Cyest Corporation to develop a Mine Optimization Tool (MOT) to enhance the current suite of in house mine planning tools and processes. The application was built in a multidimensional modelling environment developed by Cyest called CarbonL. This has allowed complex modelling that is transparent to the business users and therefore is not prone to the ?black box? approach that generally exists with these types of complex tools. The purpose of the MOT is to have an integrated software tool that can schedule production activities by half level for a shaft complex, while at the same time integrating the economics concomitant with that schedule. The tool allows the user to configure all activities relevant to the selected mining method, define the mine design parameters and geological parameters, define scheduling rules and then schedule all activities. This allows the user to test various production strategies and schedules very quickly and easily in terms of shaft value, costs and revenue profiles, labour complement and production ramp up so as to determine the option that best fits the overall strategy. This allows assessments of multiple scenarios in a relatively short period of time, after which only the best option is taken forward for graphic design and scheduling. This paper discusses briefly the rationale behind the Mine Optimisation Tool and the underlying workings of the modules that comprise the tool. It also covers the life cycle of this tool from the original prototype through to the final Mine Optimisation Tool software and discusses the positioning of the final tool.

Jan 1, 2007

By L. Schernikau, W. H. Smith

Oil, coal, and gas account for approximately 80% of global primary energy, but only a portion of total airborne CO2 eq (approx. 35% at GWP20 to 65% at GWP100), even though they account for 95% of total measured CO2 emissions. The benefits of these energy sources, as well as their related costs, are not all incorporated in current energy policy discussions. Global greenhouse gas policies must include documented changes in measured airborne CO2 eq to avoid spending large amounts of public funds on ineffective or sub-optimal policies. The authors examined airborne CO2, which is less than half of emitted CO2, as well as reported CH4 emissions and the global warming potential of CH4 as published by the IPCC for coal and natural gas. The surprising conclusion is that surfaced-mined coal appears ‘better for the climate’ than the average natural gas, and all coal appears beneficial over LNG. Therefore, current CO2-only reduction policies and CO2 taxes are leading to unintended consequences and the switch from coal to natural gas, especially LNG, will not have the desired impact of reducing predicted future global warming; in fact, quite the contrary. A large portion of anthropogenic global warming is attributed by the IPCC and IEA to CH4, but it must be noted that CH4 emissions from natural sources and from agriculture account for approximately 40% and 25% of annual global CH4 emissions respectively. Energy accounts for about 20% of documented CH4 emissions. CO2 contributes only approximately 35% of annual airborne anthropogenic GHG emissions after accounting for CH4, over a 20-year horizon. At a 100-year horizon, the contribution of CO2 increases to approximately 60%. Energy policies that do not consider all GHG emissions along the entire value chain will lead to undesired economic and environmental distortions. All carbon taxation and CO2 pricing schemes are incorrect and need to be revised. At IPCC’s GWP20 an approximately 2%1 higher loss of CH4 across the value chain prior to combustion of natural gas versus coal will lead to ‘climate parity’ of coal with natural gas. According to public data, natural gas value chains have high CH4 and undocumented CO2 losses. On a global average, using only IEA-documented CH4 data, natural gas emits approximately 15% more CO2 eq than surface-mined coal, over a 20-year horizon. This difference will increase as the use of shale gas and LNG expands. Investors should support all energy systems in a manner that avoids an energy crisis, including intermittent renewable energy systems where they make sense. If CO2 emissions need to be reduced, one of the most effective ways would be to install ultra-supercritical power plants with CCUS technology. However, the undisputed benefits of increased CO2 concentrations in the atmosphere because of its promotion of photosynthesis and plant growth effects (fertilization) need to be considered in energy policy decisions as well. The authors suggest that future research and development should concentrate on reducing net emissions from fossil fuel power plants and providing cost-effective and reliable new conventional power generation capacity, utilizing clean coal and clean natural gas technology.

Mar 2, 2022

By F. T. Cawood

This research report was produced in response to the release of the Mineral and Petroleum Royalty Bill. It involved are view of the mineral investment environments of selected countries in order to form an opinion on the appropriateness and competitiveness of the proposed royalty structure for South Africa. Many emerging countries have recently attracted a significant share of foreign investment, as a direct result of changes in policy. These are, by implication, the least risky and most favourable destinations for the ?investment dollar?. The five most competitive countries, namely Chile, Argentina, Peru, Mexico and Brazil have been identified as succeeding with their policy visions of creating favourable domestic investment environments. The investment rules of these countries served as a basis for the compilation of a Competitive Investment Framework (CIF). This is a template of best practice against which other investment environments, such as that of South Africa, can be measured. The framework indicates that mineral royalties should ideally be no more than three per cent, demonstrating that the regime proposed in the Royalty Bill is out of step with international best practice. Mineral royalties can never be viewed in isolation and in the assessment of the rates proposed in the Royalty Bill, one must consider the total taxation package. Such assessment appears in Section 5 of this report, demonstrating that there is reason for concern if National Treasury were to impose the rates stipulated in the Royalty Bill. The alternatives, conclusion and recommendations of the review appear in Sections 9 and 10. These are the result of independent analysis and assessment of the fundamental principles. It is done through the application of a Competitive Investment Framework that avoids the highly subjective and emotional views that often accompany a process like this.

Jan 1, 2003

By Donald Leroux, Simon Gariépy, Luc Lachance

"Quantitative information about the quality of metal balance results is often overlooked when making important plant production planning decisions. Not only is this common omission made in a context where many measurements taken in and around mineral processing plants carry significant errors, but it also conflicts with the AMIRA P754 Code of Practice for Metal Accounting. The fact that metal balances are typically published without any indication of data quality may give the wrong impression that the measurements are unquestionably accurate. While it is true that statistical data reconciliation can improve the confidence intervals of redundant variables, there is no data processing technique that brings them down to zero at a finite cost. In this paper, we review the entire data flow, starting from field instruments to metal accounting-based decision-making to show how measurement errors are transmuted into business risks associated with production planning. Necessary conditions for first exposing then quantifying such business risks are stated. Pitfalls to be avoided are also discussed. Finally, a simplified risk assessment and management procedure which considers the quality of metal balance results are applied to a polymetallic mineral processing plant. INTRODUCTION Each and every mineral processing plant has production reporting obligations. In this paper, we are concerned with metal accounting reports (Morrison, 2008) where saleable metal flows and inventories are estimated and published. These metal accounting reports are delivered to a variety of stakeholders who use them for internal management purposes (day-to-day plant production planning, plant operation optimisation, capital spending, etc.) as well as for external management (royalty settlements, tolling agreements, etc.). Hence, there should be no doubt that spotless metal accounting is instrumental to high-quality corporate governance (Gaylard et al., 2014) of mining and metallurgical companies. To this extent, one would have expected industry-endorsed standards to have emerged a long time ago. However, the lack of an accepted set of standard procedures for metallurgical accounting was explicitly recognized as an industry-wide problem only in August 2001 during an SAIMM workshop held in Cape Town, South Africa. Discussions that followed this workshop led to the initiation of the AMIRA Project P754, “Metal Accounting and Reconciliation”, in 2003."

Jan 1, 2015

By L. J. Gerber, O. D. Eniowo, L. D. Meyer, S. R. Kilambo

Artisanal and small-scale mining (ASM) operations continue to grow across sub-Saharan Africa and serve as a source of livelihood to many rural communities. Owing to safety, health, environmental, and social concerns, the occupation has been regarded as a menace in several sub-Sahara African countries. Recent studies in the field of ASM prescribe formalization as a way to tame its excesses while enhancing its potential. This paper explores the concept of formalization as it relates to ASM and how it is being affected by the funding situation. The paper seeks to address the question as to whether formalization of artisanal mining operations can achieve the desired results in view of the lingering credit constraints in this mining subsector. It is recommended that, as a way of extending the scope of formalization, focus should be placed not only on access to credit in ASM but also towards optimizing the creditworthiness of ASM firms, with the goal of improving the viability of the operations.

Mar 2, 2022

By W. Barnett

The Limpopo Metamorphic Belt is a complex geological terrane with at least three major deformational events. Tectonically juxtaposed lithology, open to isoclinal folding, crosscutting and re-activated shear zones and metamorphic gneisses and schists make pit slope design and maintenance a risky business. Venetia diamond mine?s Cut 3 is planned to reach 360 m by 2011. The difficult rockmass created problems in the original pit and a new more comprehensive slope design was necessary. Nearly 9 km of geotechnical drilling were undertaken to produce a new geological model and provide geotechnical information near the final Cut 3 face. All existing data from the pit were brought together into a database. SRK Consulting were brought into the project to audit the process and provide most of the manpower for the data analysis. Existing failures were back-analysed and the geotechnical domains identified. Analyses of only the southern domains are discussed in this paper. Geotechnical engineers can design slopes at any angle, but it is up to the managers at the mine to decide what risk they are willing to accept in a slope design. Once the issue of risk was discussed and settled in respect of the consequences of failure, each of the main geotechnical domains were analysed to produce a slope design at5% probability of failure with 15% above the first ramp. A risk assessment of the design was then undertaken to determine what risk the design placed on the equipment, personnel and the profitability of the overall mining operation. The risk assessment indicated minimal risk to the operation. One of the main assumptions of the final design is that the pit slopes will be dewatered. A project was immediately put in place to determine a groundwater model for the mine and to thereby determine the best dewatering procedure. However, it should be obvious that it is practically impossible to prevent benches from getting briefly saturated with water during storm conditions. It was therefore necessary to look specifically at supporting the crests of the ramps in the problematic southern domains to guard against the possibility of crest failure during heavy rains. The data available were re-analysed toward this objective. Spiles were recommended as the most cost-effective support system, and a probabilistic approach was used in the design. The final design has a 5% probability of failure, and the analyses indicate a strong sensitivity of the required spile spacing to the strength of the reinforcement material that will eventually be used. The pit slope parameters derived as per the discussion in this paper have just begun to be implemented at Venetia Mine.

Jan 1, 2001

By V. Quezada, Á. Astudillo, L. Valásquez, M. Garcia

Seawater has become a viable alternative for different uses in copper hydrometallurgy. In this paper we review the main physical and chemical characteristics of seawater and how these influence copper production. Reliable data on the use of continental water are reported, and the current use and consumption of seawater in the Chilean mining industry is analysed, indicating the main areas of use and the main problems encountered. Additionally, the influence of the elements in seawaterthat have the most influence on the extractive metallurgy of copper are considered. The Chilean copper mining industry currently consumes approximately 4.1 m3/s of seawater, which corresponds to 25% of the total water used. The use of seawater for the leaching of copper sulphide minerals, such as chalcopyrite, is beneficial because it provides 20 g/L of chloride, thereby improving copper dissolution kinetics.

Jul 5, 2023

By H. Immink

Keywords: Kyoto Protocol, carbon credits, global warming, energy, auditing Climate change is nowadays being taken increasingly seriously, and the link between global warming and the carbon dioxide released in the generation of energy is coming under increasing scrutiny. The Kyoto Protocol was signed in 1997, after five years of negotiation. So far, about 84 countries have ratified this agreement, under which terms developed countries have strict targets linked to their 1990 level of emissions. However, ?greenhouse gas? (such as carbon dioxide) emissions continue to rise alarmingly. According to the World Resources Institute, greenhouse gas emissions in the USA increased 13% from 1990-2002, while Australia recorded a 22% increase. In contrast, the European Union, a Kyoto signatory, has seen a small decline in its emissions during the same period. This is led by the UK and Germany, who reduced their emissions by 15% and 19% respectively. The concept of ?carbon credits? provides a funding mechanism for companies in the developed world to compensate for some of their CO2 emissions by paying companies (trading credits) elsewhere in the world to undertake projects to bring about reductions in emissions. In the southern African mining industry, it will be possible to get refunded for undertaking voluntary emission-reduction projects. Concern about the environment is creating business opportunities. A preliminary calculation has shown that various projects in South Africa (those in the pipeline, with quite a high likelihood of coming off) could earn a combined total of about R2.5-billion, under the initial phase of the Kyoto Protocol's carbon-credit scheme, which allows developed-country companies to trade credits with developing countries. A number of local companies are planning projects that could comply with the Clean Development Mechanism (CDM), in which they will implement techniques to achieve certified emission reductions (CERs) of greenhouse gases. In order to prevent abuse of such a system involving vast sums of money, vigorous audits need to be carried out. A company has to prove it has made real changes and is not simply conducting business as usual under a cloak of claimed environmental improvements. PricewaterhouseCoopers has applied to become one of only a few international agencies that will be accredited to conduct validation and verification of the credits, by auditing what is called the ?designated operational entity?. An independent validator needs to confirm that the project meets the strict requirements of the Kyoto Protocol. The company has to demonstrate that it?s not business as usual. So, if you refurbished every five years, the next refurbishment is not a good CDM project, unless you can demonstrate that you will do something beyond the maintenance - that is what can be registered. So, Kyoto intends to get additional projects going, and the money for that is actually quite good - prices of 14 euros per ton of carbon dioxide not emitted have been seen. The price depends on who takes the risk for non-delivery if a project doesn?t deliver the emission reductions on time. The highly energy-intensive South African mining industry is heavily dependent on coal. There should be many opportunities for the pyrometallurgical industry to come up with creative ideas to reduce emissions, and there is now an additional financial incentive to encourage this. Companies can actually get money in return for doing these types of projects, in addition to the contribution to corporate social responsibility.

Jan 1, 2006

By R. M. Kear

Strategic and tactical planning are both required in the mining industry but have completely different objectives and require different environments. If these are not fully understood, then the best value for a mining operation may not be realized. This paper examines the differences in these approaches and how they interface in the mining environment. The objectives, content, skills required and the implied management issues for these two components are examined with the hope that this will assist management and the planning teams in defining their respective roles and expectations. The opinions are those of the author based on his experience on several mining operations and projects.

Jan 1, 2006

By R. Burger, M. Masukawa

Cato Ridge Alloys (CRA) is a joint venture company between Assmang of South Africa, Mizushima Ferro Alloy Company (MZK) and Sumitomo Corporation from Japan. Negotiations for the formation of the company started in 1992 with the joint venture agreement signed on the 19th September 1996. MZK was to supply the technical know how for the production of Medium and Low Carbon FeMn while Assmang was to manage the day to day activities of the company. Sumitomo Corporation was to act as facilitator between Assmang and MZK and, together with Ore and Metal are responsible for the marketing of the refined products. The conceptual design of the plant started in December 1996 and the first charge of molten high carbon ferromanganese metal was charged on the 19th January 1998. Problems experienced during the initial startup period were addressed resulting in substantial operational improvements. A build-up in the stock of fine metal was addressed through the development of a process to remelt the fine metal, the development of a market for fine metal and the upgrading of the crushing and screening plant to reduce the generation of fine metal. The mass yield from High Carbon Ferromanganese to Refined Ferromanganese was increased through the implementation of statistical process control, changes to the blowing patterns and the development of a sampling device for taking samples during the process. Converter refractory consumption was reduced. This was achieved on the converter by improving the cooling of the converters with the installation of cooling fans and cooling fins. The heating schedule of the converters was changed for improved refractory life. Production schedules were modified to allow cooling of the refractory between low carbon erromanganese charges. Additional changes made to improve operations were: ? Changing from mehanite casting trays to metal fines beds. ? Installation of sonic horns in the baghouse to prevent the bridging of dust. ? Improved welding on the lance tips.

Jan 1, 2004

By J. P. Gouvea

Back-analysis of two mining-induced tremors in 2011 was used to determine a modelling criterion for the entire Klerksdorp Goldfield (i.e., Vaal Reefs region). At that time, most mining operations in the region were owned by AngloGold Ashanti (AGA) and shared many geotechnical similarities. By 2018 AGA had sold off all its Klerksdorp operations to different mining companies, which continued applying the 2011 modelling criterion. As mining activities became more remote, scattered, and isolated, the extraction of isolated blocks of ground and remnants became increasingly necessary. However, the inherited criterion allowed only minimal or no mining activities at these areas. Keeping in mind that safety is the overriding consideration, an innovative numerical modelling approach, which includes the application of peak particle velocity designs, was developed to provide practitioners in the Klerksdorp Goldfield with a suitable criterion to justifiably and safely mine isolated blocks of ground and remnants. This would not always be possible if a conformist approach was used.

Mar 14, 2024

By D. Limpitlaw

The origins of mine closure practice have influenced the way in which it is implemented by companies and regulators. Mine closure practices essentially started developing in the 1970s in countries with advanced economies and mature mining industries. In these settings, the emphasis was justifiably placed on restoration of the landscape and an attempt was made to return to the ?natural? pre-mining land cover. These practices continued to evolve and incorporated socio-economic and cultural aspects, especially after the Brundtland Report in 1987 and the subsequent Earth Summit in 1992. Today mining is increasingly occurring in remote parts of developing countries where there may be significant need for infrastructure such as roads, clinics, and schools. The costs of returning land to low (economic) value pre-mining use may be far greater than establishing a viable postmining land use that could potentially add value to the community and take pressure off sites for greenfield development elsewhere. Furthermore, natural resource limitations (such as topsoil availability) may limit the degree to which the historical land cover can be re-established. Establishing post-mining land uses may aid in mitigating the loss of employment that is inevitable when mines close. Stakeholder participation in establishing post-mining land cover and land use options is critical for long-term success. Similarly, third parties must be identified to support the development of the post-mining land use This paper draws on the experience of the authors in several developing countries and presents a case for maximizing re-use of mining infrastructure. The paper does not advocate the adoption of poor rehabilitation standards, nor or the wholesale destruction of land capability, but rather leaving key infrastructure in place for post-mining use that may support sustainable development.

Jan 1, 2014

By E. Demir

Transportation cost is the dominant cost and accounts for almost half of the total mining cost in surface mining. Therefore, determining transportation cost is critically important for the economic feasibility of mining projects. Turkey produces around 85 million tons of lignite per annum. The biggest state-owned company, Turkish Coal Enterprises (TKI), accounts for 43 per cent of the country?s total lignite production. Around 85 per cent of the produced lignite is used in power plants for electricity generation and 15 per cent is used for domestic heating in cities and urban areas. On behalf of the Turkish government, TKI distributes around 2 Mt of lignite annually, at no cost to poor needy families countrywide in accordance with Social Assistance and Solidarity Funding aid. Subcontractors are utilized for lignite transportation, and conflicts arise due to the different transportation cost calculations at different mines. A robust model that provides unbiased cost estimations is therefore of paramount importance. This paper presents the transportation cost estimation software, NAKMAL, that has been developed for estimating the transportation cost of lignite from the mine face, including excavation and loading, to various final destination points through five different transportation scenarios. NAKMAL was designed using VisualStudio.NET, validated using field data and some case studies, and it is currently being used by TKI for calculation of transportation cost country-wide.

Jan 1, 2012

By G. L. Smith

This paper consolidates the key elements of seven contributions, on strategic long-term planning, to two of the three international conferences on Strategic versus Tactical approaches in Mining held over the period 2005?2008. The holistic concept of strategic long-term planning as developed and implemented at Anglo Platinum is described. Consideration is given to the planning cycle, principles supporting the construction of the long-term plan, and aspects of unique best practice as developed in Anglo Platinum. Further description of Anglo Platinum?s approach to corporate governance, including the processes, methodology, systems, unique tools and techniques that are applied to value and select capital investment options is also given.

Jan 1, 2009

By G. J. de Korte

South Africa’s best-quality coal, located in the central Highveld basin, is becoming depleted and alternative sources of coal, such as the Waterberg coalfield, will have to be developed to supply the country with coal in the future. The quality of the coal being mined in the central basin is gradually becoming poorer. This necessitates that more of the coal be processed to improve the quality to meet customer requirements. The challenge to the coal processing industry is to process low-yielding coals to produce goodquality products and at the same time ensure that coal mining remains economically viable. This requires that more cost-effective coal processing technologies be investigated and implemented.

Jan 1, 2015

By J. R. G. Williamson

The Mining Division of Iscor, an integrated minerals and metals company, has recently completed a feasibility study for the establishment of a new heavy minerals mine and smelter in the Richards Bay area of KwaZulu-Natal, South Africa. The mine will produce a heavy mineral concentrate containing ilmenite, zircon, rutile and leucoxene which will be beneficiated at a central processing complex close to Empangeni. The ilmenite will be smelted to produce high-grade titania slag and pig iron for export. The ancient dune containing the mineral deposit is located some distance inland of the coastal dunes, and the sands contain a high proportion of extremely fine material which must be extracted ahead of the gravity separation process. Of the 56 million tonnes to be mined annually over the ten-year life of the mine approximately 23,4%?a total of 13,1 million tonnes of minus 45 micron residue fines?will have to be disposed of in a containment facility. The origin of the fine material is from the weathering of amphibole minerals. The remaining coarse sands will be returned to the mined area to re-create the original dune configuration. A number of options for the disposal of the residue fines have been examined and specialised laboratory tests undertaken to determine the deposition behaviour of the fines. The final solution involved the use of a ?sub-aerial? technique for deposition of fine material in a disposal facility. The resulting arrangement will adequately meet technical and environmental criteria. Upon closure after 10 years of operation, the surface of the disposal facility will be returned to sugar cane cultivation The paper refers to the various options considered and describes the problems associated with competent disposal of the residue fines and the development details of the final disposal facility.

Jan 1, 1997

By H. E. James

Much has been said and written about the need to reduce South Africa's dependence on gold. To compensate for the decline in the country's foreign-exchange earnings resulting from the phasing out of gold, which must inevitably occur at some future date, a far higher priority will have to be placed on the mining, beneficiation, and export of the 59 other mineral commodities produced in South Africa. The basic strategy of the mining and metallurgical industries should be to move from the traditional approach of establishing a resource base to the establishment of a market base; to turn from production orientation to market orientation; and to rely less on exploration and economies of scale and more on process innovation and product development. The enthusiasm, entrepreneurial spirit, and commitment of the leaders in the mining and metallurgical industry will clearly be of decisive importance in the establishment of new industries for the beneficiation and export of added-value mineral-based products. The State can make a significant contribution by the provision of a welldeveloped and efficient infrastructure, including rail and harbour facilities, communications and health services, roads, and of electricity and water supplies. In our search for a new development strategy for the beneficiation and export of South Africa's minerals, we need to recognize that no one nation has all the mineralresources that it needs. Commercial and strategic manipulation of mineral supplies should no longer be tolerated. The future of the human species lies in international cooperation and in a greater understanding of the limitations of the world we live in.

Jan 1, 1985

By P. G. Mason, H. T. Brown

Electrowinning of nickel at the Bindura Smelting and Refining Company by H. T. BROWN, B.Sc. (Member) and P. G. MASON, B.Sc. (Member) After a brief discussion of theoretical considerations in the electrowinning of nickel, an account is given of the electrowinning process and plant used at the Bindura Smelting and Refining Company.

Jan 2, 1977

By V. Sheikhzadeh, M. R. Sheikhzadeh, A. Haratian, M. Zare

High Pressure Grinding Roll (HPGR) as an efficient grinding technology plays a major role in mineral processing plants. Investigating the effects of this technology on different parts of mineral processing circuits reveals this technology’s capability. In this paper, HPGR grinding effects on an iron ore beneficiation circuit, in comparison with conventional crushing systems were studied. A representative feed sample was taken from an iron ore beneficiation plant, then crushed to minus 6 mm in a laboratory by two methods: HPGR and cone crusher, and finally a concentrate plant circuit was simulated. Plant simulation was performed by doing laboratory tests consisting of grinding, magnetic separation, flotation and filtration on HPGR and cone crusher products, respectively. According to comminution tests results, in particle sizes smaller than 6 mm, a cone crusher product is coarser than an HPGR product. Also, the Bond ball mill work index of the HPGR product was 10% less than the crusher product. Therefore, based on the Bond formula in applying HPGR, ball mill power consumption decreased by 12%. After ball milling to minus 100 microns, magnetic separation tests results showed that the recovery of the cone crusher circuit output was 90.8% and the product Fe grade was 66.4%. For the HPGR circuit these figures were 87.6% and 67.3%, respectively. Therefore, by using an HPGR, a higher Fe grade of the final concentrate was achieved. A flotation test was then performed on the magnetic separation concentrate, where the results showed that the crusher circuit recovery and the sulfur grade of the product were 96.5% and 0.192%, respectively; whereas the HPGR circuit recovery was 97.2% with a sulfur content of 0.185%. Findings revealed that flotation performance in the HPGR circuit was more efficient than the crusher circuit. Vacuum filtration tests on concentrate produced through the HPGR circuit resulted in a moisture content of 12% that was 2% higher than the crusher circuit’s concentrate in the same condition. Keywords: High pressure grinding roll, power consumption, magnetic separation, flotation, filtration

Jan 1, 2020

By M. H. Solomon

After the global financial crisis of 2008, African mining is entering anew phase of development. The rapid withdrawal of emerging market funding from the critical exploration and development industries provided a hiatus in funding, a gap which was quickly filled by Chinese and other Asian investors. While the continent is still economically dependent on its extractive industries, the prevalence of Dutch Disease has undermined Africa?s ability to benefit fully from its mining, oil, and gas industries. While the extractive industries are closely related to many of the more fragile and failed states in Africa, it is equally true that the strongest states in Africa have mining-based economies. This paper explores the possible linkages between mining, strong and weak political economies, and poverty in Africa. It draws the conclusion that neither Dutch Disease nor Resource Course is a given in resource-endowed countries, and that it can be avoided if the mining economies in these countries are actively integrated into their respective broader economies and used to foster economic diversification. The author asserts that given the capacity constraints of many African governments, it is contingent on mining companies to become integrally involved in catalysing diversification around their infrastructure and supply chains.

Jan 1, 2011