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By M. Mathey

The application of the Monte Carlo technique to production planning and everyday economic decisionmaking in mine production management is demonstrated. The logic is detailed using an example of underground production with continuous miners (CMs) and truck haulage. It is argued that availability of equipment and personnel are the predominant variables influencing mine output and productivity and that those availabilities may be well represented by binomial probability distributions. The probabilistic model is implemented in a standard Excel® spreadsheet with Palisade’s @Risk add-on to facilitate simulations. Starting from model calibration against data obtained from a mine’s annual reports, some general interdependencies of availability, utilization, productivity, and costs of production processes are outlined. Finally, several possible options and their consequences as regards production improvements are explored.

Dec 13, 2022

By K. M. Phamotse, A. S. Nhleko

"*Paper written on project work carried out in partial fulfilment of BSc (Mining Engineering) degreeSynopsisLiqhobong Mining Development Company (LMDC) has been experiencing problems with boulders after blasting where the fragment sizes exceed the maximum of 800 mm as per mine standard. As a result, the mine has employed various methods to improve the fragmentation. The goal is to produce a run-of-mine (ROM) feed that does not choke the crusher and cause delays in production. In order to achieve this goal, fragmentation distribution within the fines and coarse envelope must be optimized through effective planning of blasting activities and accurate execution.The mine determined the fines-coarse envelope within which the entire crushing system can handle fragments using Split Desktop software. It is expected that both the predicted and actual fragmentation curves lie within that envelope for optimal fragmentation. The Kuz-Ram model with blast design parameters of 2.6 m for burden, 2.8 m for spacing, and 127 mm hole diameter was used to predict the fragmentation. The results show that the blast design parameters may need altering to achieve optimum fragmentation. Furthermore, the execution of the drilling and blasting may be the cause of the fragmentation problems. The mean fragmentation size (X50) differs greatly, unlike the uniformity index (n)s values which are relatively close to each other (0.6 to 2.2). The mean squared error (MSE) values have a large range. A proposed solution is a modified burden, spacing, and hole diameter. It is concluded that blast design parameters need to be reviewed in order to obtain correct predictions. IntroductionFragmentation has an impact on the mine production cycle which comprises, inter alia, drilling, blasting, loading, hauling, and crushing. Correct fragmentation as set by the plant design is important as it reduces the time lost due to secondary blasting and/or loading difficulties. In this paper we analyse blast results at Liqhobong Mining Development Company (LMDC) in Lesotho for a period of six months. This project was undertaken to observe the trends from the blasts and to identify whether any discrepancies exist in the overall blast information. The period under study included 16 blasts."

Jul 1, 2019

By J. A. Luckmann

"SynopsisThe purpose of this paper is to introduce an innovative approach to risk management in surface mining operations, namely, positive risk. Traditionally, risk management focused on mitigating losses (negative). Positive risk, on the contrary, reverses the approach and focuses on exploiting a project’s inherent benefits (positive).The inability to accurately determine project objectives during the project planning phase and the failure to achieve those objectives during the execution phase is a major problem for any project management in the mining environment.The advance of computer aided design models for mine planning enables mining engineers to examine various options within a very short time. Employing positive risk management combined with drivers-based risk management when evaluating these options provides an ideal opportunity to investigate areas for improving the mining project’s profits. Furthermore, harnessing positive risk returns during the planning phase contributes immensely to the successful achievement of project objectives.Mining has inherent business risks, which can appear overwhelming when considering the risks associated with a mining project schedule, cost, and safety or resources, etc. The question is – how to manage risks in a surface mining environment, and what process methodologies, work methods, processes, and standards should be used when considering the surface mining risks. Applying the principles of positive risk management to manage surface mining risks is not only relevant, but definitely beneficial to mining projects and to the mining industry as a whole.It would be beneficial for risk managers and risk professionals to understand the roles of positive risk ‘drivers’, also known as ‘propitious attractors’. Identifying, analysing, estimating, and understanding the propitious attractors, their behaviour and their influence on project risk events helps considerably during the planning and execution phases. The theoretical and practical knowledge of both sides of the risk – the downside risk (negative risk) and upside risk (positive risk) – can add substantial value to any organization when downside risk is adequately mitigated and upside risk is beneficially exploited."

Jan 1, 2015

By W. van Antwerpen, J. Guzek, A. Lane

Strategy is about making choices. Mining companies choose to do certain things and not to do other things. Mining is a long-term business, and the choices made typically have large investments attached to them, long payback periods, and significant socio-economic consequences. In today’s uncertain world, it is important to make the right choices. The mining industry in South Africa finds itself in a difficult situation. Operating conditions are tough, the socio-political environment is complex, and financial performance is under pressure. The choices made by all the stakeholders in this industry in the short term will shape the future of the industry. This paper characterizes some of the big, difficult decisions faced by the mining industry in the South African context, and discusses how these decisions could be approached in a fact-based and robust way.

Jan 1, 2015

By W. Mackenzie

The development of a resource project inevitably requires the investigation of a vast range of issues across most engineering disciplines - mining, metallurgical, chemical, civil, electrical, mechanical and environmental - as well as the geosciences. It is also a characteristic feature of the resource industry that no two orebodies - and hence no two development projects - are the same. So these technical issues have to be addressed to a greater or lesser extent in evaluating any resource project's development potential. Not surprisingly then, technical issues tend to predominate when assessing the development potential of a project in the process typically referred to as `doing a feasibility study'. But the principal purpose of a `feasibility study' is to determine whether a development opportunity makes good business sense, not just whether it is technically possible. Resolution of technical issues is often seen as the primary focus of a feasibility study, whereas in reality, these technical issues are the basis upon which an asset delivery and business plan is built. This is not to say that technical issues are unimportant - they are a prerequisite to the demonstration of a project's viability. The feasibility study process must therefore demonstrate that not only have the technical issues been satisfactorily addressed, but also that the broader commercial, economic and social issues have been considered in the development of a comprehensive business plan, which includes an assessment of the risk-reward profile of the proposed development. This paper will present a framework for the conduct of `feasibility studies' and provide guidance to minimum standards and best practice.

Jan 1, 2007

By T. J. Goff

Keywords: accurate control, matte level, smelting operations, process control, tapping, sounding bar, electromagnetic measurement [ ] Accurate control of matte levels during primary matte smelting operations is desirable in order to improve process decision-making. High matte levels in the vessel could have to disastrous consequences, particularly in the new generation of intensive smelting furnace with deep-cooled copper coolers. Knowing when to commence tapping and a better understanding of melt times can only be improved if the furnace levels are monitored correctly. At Lonmin Marikana Smelter Division it has long been understood that the matte level information being provided by the manual sounding bar is only as good as the operators? following of measurement procedure, their skill in assessing what the sounding bar is displaying, and their individual interpretation of what they are looking at. This paper sets out to show how this problem was identified as an area of major concern to the plant, how a solution was sought and how an electromagnetic measurement system was installed as an alternative measurement to the matte sounding bar system. Other areas discussed in the paper are the difficulties to be overcome when first installing new equipment and how these teething problems were solved by close co-operation between Lonmin and equipment suppliers, which led to some design modifications to the delivery system. In conclusion the paper discusses the results between the electromagnetic measurement and the manual sounding measurement and how best to integrate the generated data into the plant?s process control system for improved decision making.

Jan 1, 2011

By S. L. Bell

Most Australian longwall coal mines are currently working coal faces up to nine kilometres from the surface. In the event of a mine emergency walking this sort of distance wearing breathing apparatus becomes very difficult if not impossible. Self-rescue continues to remain the focus of mines rescue in Australian coal mines and this paper describes a vehicle modification which will improve the chances of a miner rescuing himself. Existing mine personnel transport vehicles are not designed to operate in some types of atmospheres that may be present following a mine fire or explosion event. An Australian Coal Association Research program (ACARP) funded research project recently completed in Australia has developed a specification for a vehicle that is able to operate safely in some types of post emergency atmospheres. During the course of this investigation, diesel and electric vehicles were examined prior to making a final decision on vehicle suitability. Based on the fact that there are already some 1500 diesel vehicles in use in underground coal mines in Australia it was decided that modifications to existing diesel engines would be the best option. This presentation will outline the proposed specification for the vehicle and the reasons behind the decisions that were made with respect to the specification.

Jan 1, 2003

By M. Kumral, S. Hmoud

Optimising the configuration of infill drill holes is an important step during mineral exploration campaigns. However, this optimisation process encompassing all possible drilling configurations within a mineral deposit is highly combinatorial and hard to solve in a reasonable time. This paper proposes using spatial clustering algorithms to divide the orebody into contiguous zones and target the best zones with infill drilling in order to reduce the size of this optimisation problem. Several clustering algorithms are assessed in a spatial context on hypothetical datasets. This evaluation shows that the hierarchical density-based spatial clustering application with noise (HDBSCAN) algorithm can be used in combination with the uniform manifold approximation and projection (UMAP) dimensionality reduction algorithm to identify contiguous zones in the orebody.

Sep 1, 2021

By D. B. Rebuli

Seismic networks in deep gold mines of South Africa are often planar owing to the tabular geometry of the orebody and, therefore, the mining infrastructure. Consequently, seismic event locations are poorly constrained in the direction perpendicular to the reef plane, and symmetrical locations above and below the reef plane may fit the observed data equally well. This problem may be resolved in situations where the strata above and below the reef plane have significantly different seismic velocities, which is the case for the Ventersdorp Contact Reef at Kusasalethu mine (previously Elandskraal, the amalgamation of Deelkraal and Elandsrand). A location method using a layered location model that takes into account the velocity contrast between the layers was tested. Observed direct- and head-waves were used to determine the velocity bounds of the P-wave velocities in the two-layer model. The data-set was also used to find the best P- and S-wave velocities for the two layers by grid searching over a range of velocities and minimizing the sum of the travel-time residuals. The results from the grid search and those from the calibration of velocities using direct- and head-waves give similar P-wave velocities for each of the two layers. A second set of seismic events was then relocated with this layered model and locations closer to reef were found. This simple layered location method goes some way to reduce the reefperpendicular location errors for Kusasalethu mine in particular. Keywords mine seismology, velocity model, location methods.

Jun 1, 2013

By R. G. B. Pickering

The hard rock gold and platinum mines in South Africa have seen little development in the technology of mining. Holes are still drilled in the rock?though the latest water hydraulic rockdrills will complete that task in two minutes compared with the eight hours for hand drilling. Charging up is with far safer explosives and with available initiation systems it is no longer necessary to run up the face lighting each fuse. Movement of rock in the stope is predominately by means of scraper buckets and scraper winches?these were first introduced in the 1920s. Support is still mainly rock, either in situ pillars or backfill, or alternatively wood. Just as the mining process has changed very little it is hardly surprising that the productivity of mining is also relatively unchanged. Major efforts have been made to mechanize the mining process. However, most of the narrow reef mines where ?trackless mechanized mining? was introduced in the early1980s have reverted to conventional mining. In the wider reefs mechanized mining is the option of choice, unfortunately most of the gold and platinum mines have very narrow reefs that are not suitable to ?off the shelf? equipment. The move to introduce room-and-pillar mining into the narrow UG2 reefs is at the expense of mining more waste with the reef, fortunately it appears that appropriate waste and reef separation processes are available. Room-and-pillar mining followed by long hole drilling and blasting of a narrow slot of reef out of the pillars currently appears to offer the best of both worlds?maximum reef recovery with minimum waste dilution.

Jan 1, 2002

By M. C. Holton

South Africa has the world?s largest in situ deposits of platinum group metals, but economically exploitable resources are shrinking due to escalating costs and technical challenges. The South African National Research and Development Strategy comments that an increase in the knowledge intensity of the resource-based sectors is required to turn these resources to account. Highly trained human resources, continuous improvement, technological innovation, and smart acquisition of know-how will become the major differentiators in the global mining market. Mechanization and, ultimately, automation in mining have the potential to reverse the negative mining trend and resolve safety and other challenges. However, the adoption rate of mechanized mining in platinum (and hard-rock gold) has been slow for various reasons. Changing systems from conventional drill?and-blast to continuous mechanized mining is a big step-change endeavour. The problem of transformation is discussed, and the discipline of systems engineering is examined because of its successful application in aerospace and defence.

Jan 1, 2012

By P. W. J. Delport, E. Du Toit

Investing in a mining venture can be risky and stakeholders need transparent, unbiased reports to understand the Mineral Resources and Mineral Reserves a mining company holds. Readability and textual choice can be used consciously to manipulate perceptions, or it can be done unconsciously. This exploratory study investigates the readability and textual choice of supplementary Mineral Resources and Mineral Reserves Reports of companies listed on the Johannesburg Stock Exchange. The results indicate that narrative manipulation occurs in these reports through word choices that make the reports difficult to read, as well as specific narrative selections. This reduces the informational value of the reports. The results of the study will be useful to various stakeholders, such as mining company management, investors, investment specialists, financial analysts, and even employees and the general community, who all use these reports to make important decisions. It is also useful for the preparers of the Mineral Resources and Mineral Reserves Reports, Competent Persons, and other technical specialists to be aware of readability and that certain textual choices can affect the interpretation of these reports. It is recommended that bodies such as the JSE and the SAMREC and SAMVAL Code committees consider adding a plain language requirement to regulations, guidelines, and codes to ensure transparent, unbiased, and objective reports.

Mar 1, 2021

By F. Terblanche, M. Holton, A. Kruger

The paper presents an optimal mine planning system designed to simultaneously optimize all the underground mines of large South African gold and platinum mining corporations. The system, code named PlanIT-OPTIM, is a multi-stage solution involving the use of adetailed 3D CAD-based mine planning system (CADSmine™V4). The mine design and scheduling rules defined in CADSmine™ are responsible for simulating mining sequencing, rock mechanics, and ventilation, etcetera. Feasible production ranges generated by CADSmine™ and various high-level mathematical models are used as inputs to a mathematical optimization engine. The optimization engine produces optimal production profiles (i.e. key business indicators such as tonnages, mineral and areas extracted per time period) by maximizing net present value. Other objectives such as profit continuity, production continuity and maintaining available reserves can also be specified as optimization criteria. The final step in the PlanIT-OPTIM process is to convert the optimal production profiles into practical and attainable business plans. This is achieved through the CADSmine™ Detail Optimization Engine that modifies the original CADSmine™ schedule to match the optimal production profiles. With current methods it is an impossible task to find the best business plan for a mining corporation in any reasonable period of time should conditions change (e.g. gold prices, exchangerates, grade estimates, etcetera). The fast turn around time achieved through PlanIT-OPTIM makes it possible to do several ‘what-if’ scenarios in a reasonably short time. PlanIT-OPTIM has already been used in the gold mining industry to find optimal business plans for a mine.

Jan 1, 2003

By P. O. Akinseye, F. T. Cawood

Mineral royalties are one of the oldest forms of mining taxation, and were initially introduced to extract economic rents from mining. Over time, the royalty regime has become more complex as it was identified as an important policy instrument that can achieve more multi-faceted outcomes. Such a multi-tiered approach in the use of the royalty instrument is also the case with South Africa. With South Africa’s new mineral royalty regime now in place for ten years, it is perhaps time to assess its impact and effectiveness. To carry out this assessment, an econometric evaluative study was undertaken using four major commodities in South Africa, namely gold, platinum, iron ore, and coal. The study explored five different policy options for government to consider and tested them to determine the most favourable one that will realize the regime’s policy objectives. After the assessment, two major options stood out. Hence, this paper seeks to highlight which of the two options is the most favourable for consideration by policymakers. Based on that study, we find that the current structure is effective, but also recommend that the factors in the formula for refined minerals be ‘modified’ to reduce the capped profitability ratio from the current 60% to 30% and the maximum royalty rate for refined minerals from 5% to 3%. The minimum rate of 0.5% during times of depressed mineral prices and no or low profitability will not be affected.

Dec 1, 2021

By M. Visser

Keywords: Pyrometallurgy, furnace, ferrochrome, Samancor, ferrochrome process Samancor Chrome has been, and continues to be, a major player in ferrochromium production. The company has a proud history and possesses benchmark technology and operations. Currently five business units are operating: two sets of mines and three smelter plants. Samancor Chrome produces around one million tons of charge chrome annually. Chrome ore, intermediate-carbon ferrochrome, and low-carbon ferrochrome, form part of the portfolio. Electrode paste is also manufactured through a joint venture with Highveld Steel and Vanadium. Samancor Chrome has a balanced approach towards operational strategy, and has entered into a number of joint venture partnerships. Through its access to quality raw materials, knowledge, and experience of various production technologies, and its strategic abilities, Samancor Chrome is well positioned to reap the benefits from opportunities in the current and future industry context.

Jan 1, 2006

By T. Mapeta, S. M. Rupprecht

Discussions on reasonable prospects for eventual economic extraction (RPEEE) include the CRIRSCO 2019 reporting template, JORC 2012, SAMREC 2016, CIM 2019 Guideline, and Regulation SK-1300. These reporting codes all conform to the principles of reasonable prospects for eventual economic extraction. To demonstrate that all mineral resources align with the RPEEE principles, the Competent Person is responsible for endorsing the mineral resource estimate. Moreover, establishing mineral resources and RPEEE requires technical input from numerous technical specialists, such as mining and geotechnical engineers, metallurgical engineers, social and environmental specialists, financial and governmental practitioners, and more. The aim is to improve the transparency of the disclosure of mineral resources and guarantee the investor or potential investor that the reporting of mineral resources is based on reliable technical, economic, environmental, social, and other relevant factors. This paper discusses the important protocols and definitions in some international reporting codes for the purposes of developing a guide memoire that will assist the Competent Person to interpret, establish and apply RPEEE appropriately and easily.

Jun 27, 2025

By E. V. Lilford

Valuators of mineral properties are faced with a range of valuation methodologies, the most important of which are grouped under the headings of the market approach, the cost approach and the income approach. The way in which value is defined and the detail of the different valuation methodologies is examined here. This paper aims at documenting the variety of valuation procedures and applying each method to a variety of gold projects and comparing the outcomes. Any decision to apply a valuation technique will depend principally on the stage to which the project has been developed. The valuation approach to a greenfield project will be substantially different from that applied to a well-drilled, extensively explored mineral property. Furthermore, a valuation exercise may produce different outcomes for the same gold project depending on which method is applied. In order to investigate the variability in valuation methods and to explore the outcomes of different approaches, a series of five gold projects was analysed. The projects differ in regard to levels of capital application, infrastructural setting, depth below surface, in situ grade, and the stage of development, and were valued using the different methods. The most critical aspect of any valuation is the capacity of the valuer to identify the salient issues and ensure that they are incorporated into the valuation. The danger of simply applying ?black box? solutions to valuation problems without a full understanding of the parameters and the areas of uncertainty is emphasized. The importance of the valuator?s experience, insights into best practice and the ability to recognize and submit to the requirements of compliance within the minerals industry is among the most important characteristics of a valuer.

Jan 1, 2005

By G. A. Brown

Major mining projects are developed with the assistance of lending institutions who provide hundreds of millions of dollars in funding over several years, and of course expect those funds to be returned with interest. Two Australian banks have adopted the Equator Principles, an emerging financial industry benchmark for assessing and managing environmental and social risk in project financing. Project financiers have encountered environmental and social issues that are both complex and challenging, particularly with respect to projects in the emerging markets of Asia-Pacific and elsewhere. There are many recent and historical examples of failures by resource companies to effectively manage their environmental, social, safety and security risks, some of which have caused the project to fail completely, and some of which have caused the temporary cessation of production. These events put the financial institutions' funds at risk through inadequate management capacity and non-compliance adversely affecting the ability of the borrowers to repay the loans. They can also reflect adversely on the reputation of the lending institutions. In assessing these risks, lenders are increasingly looking at the track record of the borrower in its country of origin and in other countries where it operates. Lenders are wary of companies that have one standard for operations in a developed country, where the regulatory environment may tightly control what they do, and another standard for operations in countries where the regulatory regime is perhaps less stringent. Lenders may require environmental and social reviews or audits to be conducted on their behalf by competent third parties prior to a loan being approved, and annually over the life of the relationship. The mining industry's concept of the unwritten `social licence to operate' is highly relevant in relation to the delivery of community benefits that are sustainable post-mine closure. This paper provides examples of recent practices that support financial viability and sustainable development, as well as examples of some failures that have put lenders at risk.

Jan 1, 2007

By N. V. Moraka

Calls for transformation in the mining sector are legislated. Whilst the composition of boards in terms of gender diversity and equal representation has improved, little is known on how women directors experience boardrooms. This research investigated the experiences of South African women in male-dominated mining boards. It questions why women remain marginalised in boardrooms, even when they are qualified as the men in their respective fields. The experiences of South African women on male-dominated mining boards were investigated by means of a multiple case study using a qualitative research methodology. Interviews were conducted with 16 women and 12 men serving across six JSE-listed South African mining companies. The findings show that irrespective of their qualification and experience, women,s, contributions are often ignored, and they are assigned to more social roles. Regardless of race, all women experienced gender stereotyping. Strategies are required to ensure that board cultures embrace female talent, where women can effectively contribute to decision-making and maximize their talent. It is argued that gender and identity should be studied in relation to post-colonial history in African countries. Women have multiple, varying identities, and their experiences require a unique investigation that would enable strategies to overcome barriers, through the implementation of an appropriate diversity management programme.

Feb 12, 2024

By Conné Spangenberg

Contents ?Introduction ?Metal accounting environment ?Problem statement ?Investigations & Achievements ?Metal Accounting ?Principles ?Standards ?Audits ?Questions

Jan 1, 2005