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"The management of outlier grades in positively skewed gold distributions is a contentious issue. Incorporating outliers in standard ordinary kriging (OK) estimation procedures in a way that honours the data without smearing extreme grades into surrounding areas has been problematic. Cutting or capping of outliers to mitigate their influence in estimation techniques is common practice, while methods that manipulate the OK system of equations fail to honour the data. We propose a method of post-processing of kriging weights that provides realistic OK estimates and mitigates smearing without manipulating kriging equations or changing the original grades. The method requires that the data is not clustered, is approximately equally spaced, and is of the same support. Positively skewed data is ordered on attribute grade and nonlinearly transformed to a Gaussian histogram of categorical bins whose frequency is based on their likelihood of occurrence and location in the sample distributions. Factors that restrict kriging weights are calculated by dividing the percentage frequency of data in each bin by the percentage frequency of data in the bin with the highest frequency. Restriction factors applied to the kriging weights in the OK estimation restrict the range of influence in proportion to their probability of occurrence in the distribution. Smear reduction post-processing is easy to implement and addresses issues arising from negative kriging weights while considering the spatial location of samples, the sample grades, and their probability of occurrence. The method mitigates both smoothing and conditional bias.IntroductionOutliers are sample observations that deviate considerably from the standard or expected (Hawkins, 1980). These deviations can be high or low in grade depending on the distribution. The presence of outliers in a mine sampling campaign could provoke mixed reactions. Mining engineers might view high-grade outliers as a promise of achieving higher grades, while the geostatisticians view outliers as affecting the accuracy and precision of the overall estimate, among other issues. Having identified outliers, the geostatistician must decide how to account for their presence and treat them so that true underlying estimates are not distorted. Advanced knowledge of the deposit allows the geostatistician to identify and treat outliers acceptably, especially where samples are limited in number and the true grade distribution is uncertain. If ignored, or treated incorrectly, outliers are likely to lead to smearing of extreme grades into the surrounding estimates, thereby steering regions towards potential under- or over-estimation."

Apr 1, 2019

By F. H. Deist, M. P. Roberts

"The Collieries Research Laboratory of the Chamber of Mines of South Africa is developing a coherent system of programs to aid in the full spectrum of activities arising in the planning of new as well as operating mining enterprises. It is the purpose of this paper to describe the design and application of two subsystems in the complex.One of these subsystems is an initial version of a production simulator. This program draws upon a model of a mining enterprise and simulates the operational and financial aspects of a set of alternative mine production plans.These plans are specified in terms of proposed sequences of operations. Details such as reserves, production rates, resource requirements and so on, are taken from the model.Physically, the model takes the form of a cross-referenced data base, maintained by means of a general file maintenance system which is another subsystem described.The paper concludes with a description and analysis of the first practical application of the two programs."

Jan 1, 2014

By R. P. King

"A model of the flotation process can be used effectively for design and control. For design purposes it can be used to predict the performance of a large plant from laboratory and pilot plant data. It can be used for control purposes to assess the utility of any proposed operating modification to an existing plant, and it can also be used to determine optimal control settings for best operating performance.A model has been developed that will allow for variations in feed properties and for variations in fineness of grind. The model can be used to assess the effects of reagent addition rate, aeration rate and pulp level on plant performance and these are the control variables that are used individually or together in all operating flotation plants. The model provides for a distribution in the values for flotation rate constants, particle size and mineral fraction, and, because of its complexity, requires a large computer when it is to be applied to a typical plant configuration. The computational method that is used to apply this model to such configurations is described in this paper, and particular attention is paid to the problem of allowing for feedback of tailings from cleaners and recleaners."

Jan 1, 2014

By A. Rödfalk, P. Bloemer, J. P. Nilsson, N. Brogden

"Reliable and accurate metal transfer information during silicon tapping from an EAF is invaluable for decision-making and process optimization, while obtaining such information safely is a necessity.Elkem Thamshavn Norway, a producer of metallurgical-grade silicon, identified inherent safety problems with gauging fill levels in ladles using dip bars while molten metal was continuously pouring from a rotating EAF. Operator safety was a paramount concern, and an alternative automatic method of controlling the tapped fill level needed to be found.It was also considered that further benefits could be achieved such as monitoring the tapping flow from the EAF in order to identify any clogging, as well as the potential to use the live feed from such a system to assist decision-making regarding work around the taphole area.Agellis Group AB, Sweden, a company with over 30 years of experience in gauging molten metal levels in the metals industry, was able to design a solution for Elkem Thamshavn that would provide the required real-time process data while enhancing operator safety.This paper shows how the Agellis AB EMLI-L system was successfully installed at Elkem Thamshavn’s EAF continuous tapping area, how ladle fill levels were constantly monitored, and how full ladles were replaced by empty ones without the need for operators to be in the tapping area to take level readings. The results were used to compare the accuracy and reliability of Elkem Thamshavn’s current measuring methods with that of the EMLI-L system. The paper also covers how problems such as how to connect, run, and protect cables in and around the EAF tapping area, as well as connector and cabling survivability during the three day refractory pre-bake period, were solved. Finally, the paper discusses the potential production improvements, maintenance requirements, and data integration attainable through the installation of the system, as well as the major safety improvements that have been achieved."

Jan 1, 2014

By L. W. Palmer

Compositing or regularization of drillhole data is common practice in mineral resource estimation and is deemed a necessary step in producing unbiased estimates of mineral resources and reserves. Commonly, data are collected over irregular distances due to the varying relative thicknesses of lithologies drilled or sampling/assaying strategies. This necessitates data transformation to regular lengths of equal size to ensure that all data have the same sample support. However, there have been few detailed publications on the effect of this process on the composited data that are subsequently taken forward for the estimation process. In this paper, three currently available compositing methods are reviewed and the effects of inappropriate compositing methodologies presented. It is shown through a case study that compositing samples to different lengths leads to changes in the average and variance of the grades in the drillcores in the dataset, which will impact the final estimated value. These differences are exacerbated by breaks or gaps in data where, for a variety of reasons, there has been no data collection or data have been lost. The importance of appropriately treating blank and zero data is also presented. Globally, these differences might be minimal, but locally may be substantial, affecting the efficiency of the estimation and subsequent use of the results in, for example, mine planning and reconciliation. Further detailed investigation of compositing practices is required if the full implications of compositing are to be understood and any induced bias effectively defined.

Jul 10, 2024

By G. Kleyn

"Sub-standard practices and their adverse impact on safety performance remain a challenge in the South African gold mining industry. The purpose of this study was to investigate the root causes of sub-standard practices and the effect on safety performance in South African gold mines. The focus of the study was on the underground production operations at a gold mine in the Free State. The study consisted of three parts: a personal investigation into the causes of sub-standard practices at the mine, a comparison with the results of a cultural study performed at the West Wits mines, and a behavioural survey.The studies described in this article yielded similar results in terms of the key drivers behind sub-standard practices. It was found that substandard practices had a number of causes, and the origin lies within the habits, attitude, and behaviour of employees. Current methods of addressing sub-standard practices and improving safety performance were found to discourage employees from performing work safely and according to procedure. It was concluded that the lack of critical behavioural habits for the given work environment and job title could possibly be the primary reason for the occurrence of sub-standard practices. IntroductionSince the implementation of the Mine Health and Safety Act, 1996 (Act 29 of 1996) and the Mine Health and Safety Regulations, the South African mining industry has been striving to improve health and safety performance and has placed great emphasis on adherence to mine standards.The Act requires employers in the mining industry to report accidents, incidents, and dangerous situations to the Regional Principal Inspector of Mines in their area. The data provided by employers is captured and analysed by the South African Mines Reportable Accident Statistical System (SAMRASS) and made available for public viewing (Department of Mineral Resources, 2011).A review of the national mine-related accident statistics shows clearly that the South African gold mining industry has improved its safety performance markedly over the past decade, but is still facing major challenges (Figure 1). These include meeting the Mine Health and Safety Milestones (Department of Mineral Resources, 2011)."

Jan 1, 2016

By J. Dienenthal

Automatic Charging and Stoking Machines for use at ferroalloy furnaces are in operation for more than 20years. Dango & Dienenthal Maschinenbau GmbH (short: DDS) has developed several machine generations. Today advanced solutions help to achieve better charging and stoking results to minimize cost and to improve the working environment around the furnaces. Three different alternatives can be considered: Rail-mounted solution The machine(s) travel(s) on an overhead monorail to one or several furnaces and is locked in the desired working position from where charging and stoking is performed. Mobile solution This machine travels on the charging platform and is also locked at the respective working position to perform charging and stoking. Automation of a standard mobile charging and stoking machine A standard charging and stoking machine can be adapted for automation. A reliable navigation system is included. Charging and stoking is performed with the moving machine. Advantage versus other solutions: considerable lower investment cost and possibility to upgrade the mobile charging and stoking machine for later automation. Overall, automatic charging and stoking can save up to 10 per cent of the specific smelting energy. A better and more consistent furnace operation can be achieved. Different programs are used to cope with different furnace conditions and changing raw materials. All machine movements can be recorded and correlated to other furnace parameters. Working environment on the charging platform is greatly improved.

Jan 1, 2007

By S. Adams, J. R. C. von Holdt, J. L. Broadhurst

Fugitive dust from mineral extraction and processing activities can significantly influence air quality, the environment, and the health and quality of life of workers and surrounding communities. Poor engagement and communication between experts and lay persons, disciplinary silos and polarised viewpoints have made it difficult to develop a holistic understanding of the complex health issues associated with environmental emissions of mine dusts, and consequently to design meaningful and integrated approaches to address such issues. The collaborative Global Challenges Research Fund (GCRF) Mine Dust and Health Network, hosted by Minerals to Metals at the University of Cape Town, serves as a collaborative think-tank to inform research directions within and across disciplines, government policy and regulations, health monitoring programmes at public clinics, industry best practice, community healthcare and impact prevention programmes. It focuses initially on the southern African region, but with the intention to expand to mining-intensive developing countries within the rest of Africa, South America and Asia. This paper outlines the approach and activities of this global transdisciplinary and intersectoral network and presents some of the key outputs and achievements to date. Keywords: Mine dust, Global Challenges Research Fund Mine Dust and Health Network

Jan 1, 2020

By M. Loots, E. Van Der Lingen, S. Grobbelaar

The increased adoption of unmanned aerial vehicles (UAVs) may improve the productivity and costeffectiveness of remote sensing in the mining industry. This review’s objective is to enable stakeholders to identify possible application adoption, improvement, and innovation opportunities. The review merges a building block strategy and practical screening criteria to identify possible avenues of research to answer the review questions. After the screening process, 72 documents were included in the review. Papers were classified into four categories: exploration, development, exploitation, and reclamation. Fifteen applications were identified, the majority of which were in the exploration phase. The most often researched applications were topographic surveys, reclamation monitoring, and slope management. From the two UAV types identified, multi-rotor vehicles were the most favoured for all applications. From the eight remote sensing techniques identified, photogrammetry was the one most often used. Other techniques were limited because of complexity, cost, or the incompatibility of sensors and UAVs. The review was limited to published papers in academic journals. Future studies could aim to include empirical data on the latest UAV applications used in the mining industry.

Jul 2, 2022

By C. Hartford, T. Holmes

Bulk-solids handling systems are often the most over-looked component and thereby weakest links in a processing plant’s value chain. Since their performance can dictate that of the entire operation, they actually deserve special attention. When designing a liquid handling plant, density and viscosity are well known and commonly used as design parameters. Bulk solids however, differ. While the design process is similar, the relevant parameters in handling bulk solids are instead friction, cohesive strength, compressibility, and permeability. These then vary depending on the mineralogy, particle size distribution and shape, moisture content, storage time-at-rest, temperature, and consolidation pressure. With so many variables, it becomes important to characterize each individual bulk solid across the full range of representative process conditions within the handling system, plant wide – or if you are not very lucky, suffer the consequences of poor material flow. Measuring flow properties and applying them correctly in bulk solid handling system design reduces project risk, saves significant capital, and drastically increases throughput, especially when done in the early stages of a project. Keywords: Flow Properties, Bulk Solids, Process Conditions, System Design

Jan 1, 2020

By M. M. Masood, G. Y. Raju, T. Verma

The inverse velocity method has proven to be an effective approach for predicting slope failures in surface mines by analysing displacement monitoring data. However, the accuracy of inverse velocity method predictions is significantly affected by instrumental noise and natural environmental variations, which influence the identification of different deformation stages. To enhance predictive accuracy, this study applies and evaluates three filtering techniques to velocity time series data: Exponential smoothing filter, short-term smoothing filter, long-term smoothing filter and also compares it to raw data (no filtering). A refined prediction framework, that is, filtered inverse velocity method analyser, is proposed to improve slope failure forecasting in surface mining operations. The results demonstrate that filter selection plays a crucial role in optimising failure time predictions, offering valuable insights for geotechnical monitoring and early warning systems in surface mines.

Sep 1, 2025

By N. Wagner, P. den Hoed, J. D. Steenkamp, S. Soqinase

In pyrometallurgical processes, metal oxides are reduced from molten slag through carbothermic reduction. It is of interest to evaluate the reactivity of the carbonaceous materials towards substances such as slag. Characterization techniques such as coal petrography can provide insight into the influence of feed coal properties and how they potentially dictate reductant performance. This study aimed to compare the petrographically determined organic composition of coal to reductant reactivity. Two South African medium-rank C bituminous coals and one anthracite sample were investigated together with high-carbon ferromanganese industrial slag. The reductant reactivity tests were conducted at 1500°C in a muffle furnace to assess the potential of carbonaceous reductant in reacting with the main slag components. SEM-EDS was applied to understand the extent of MnO (and to a lesser extent, SiO2) reduction from the slag. Coal 2, consisting of a greater proportion of vitrinite (59.5 vol% on a mineral matter-free basis and 54.7 vol% including mineral matter) was the most reactive reductant. The anthracite sample, with the highest inert maceral proportions (71.8 vol% including mineral matter and 76.8 vol% on a mineral matter-free basis), was the least reactive reductant.

Feb 6, 2023

By B. M. Thethwayo

Graphite blocks are currently used in the concentrate - slag zone in primary PGM smelters, and can possibly be extended to the matte zone. This project evaluates the interaction between synthetic matte and graphite blocks on a laboratory scale. Static crucible tests were performed where graphite crucibles (prepared from standard and high-grade graphite) were filled with synthetic matte (27.7 per cent S ? 46.1 per cent Fe ? 17.0 per cent Ni ? 9.2 per cent Cu) and heated to 1550°C for different time periods (1?5 days). Matte penetration was evaluated using a SEM, while graphite dissolution was evaluated by measuring the carbon content of the matte with a LECO carbon analyser. Matte penetrated into standard grade graphite up to approximately 2 mm, while matte infiltration into the high grade graphite was limited to the immediate hot face. The saturation solubility of graphite in the synthetic matte at 1550°C was 0.43 per cent. Copper, iron, nickel, and sulphur were detected in an accretion that formed in the water-cooled part of the furnace. This accretion consists of mainly Cu-S and Cu-Fe-S based phases.

Jan 1, 2012

By R. Letsaole, H. Mabowa, J. Sehat, J. Tshilongo, T. Rampfumedzi, N. Ntsasa, A. Mkhohlakal1

This study explores the use of co-collectors to enhance the recovery and determination of rhodium during fire assay with lead collection, followed by acid dissolution using conventional hot plate methods. Rhodium, a critical platinum group metal, poses analytical challenges due to its low natural abundance and complex chemistry. Among the co-collectors tested, palladium and tellurium demonstrated significantly improved rhodium recoveries, ranging between 100% and 120%, whereas silver resulted in poor recovery and higher error margins. These findings highlight that co-collectors can enhance the efficiency and sensitivity of platinum group metal analysis, although their effectiveness is dependent on the chemical interaction with the target element. Acid dissolution was essential to ensure complete digestion of prills prior to analysis, enabling accurate quantification of rhodium. Overall, the findings suggest that palladium and tellurium are effective co-collectors for rhodium determination in fire assay, while silver and lead flux alone are unsuitable. This work provides important insight into optimising fire assay procedures for reliable rhodium analysis, with potential benefits for platinum group metals recovery and economic evaluation.

Mar 6, 2026

By T. Bohmer, L. Auret, N. Pillay, Z. Horn, P. Rambalee, A. Haasbroek

As part of a broader digital technology-enabled transformation programme, a major mining company is systematically implementing Advanced Process Control (APC) solutions and associated instrumentation throughout their operations. This paper highlights the approach and benefits of this holistic approach for a specific instrumentation installation, and APC installation at a South African coal processing plant. For the coal processing plant under consideration, a systematic approach was followed. Process sections/units are considered from upstream to downstream processing. APC solutions are designed for each process section and each process section is interrogated in terms of availability of sufficient process measurements to ensure stable, capable, and ultimately, optimised performance. Where insufficient process measurements are available, instrumentation upgrades are implemented. Finally, APC solutions are implemented, and evaluated in terms of productivity, safety, health, and environmental benefits. For the flotation section, an opportunity was identified to install froth sensors. The installed froth sensors provide measurements on froth velocity, bubble size, height, colour, and stability. The improved visibility that the froth sensors provided on the flotation process resulted in quick gains in terms of productivity: for example, instability in the feed to the flotation section could be quantified. This resulted in targeted process troubleshooting in an upstream thickener, and subsequent improvement of process stability, and reduced feed variance. The measurements from the froth sensors were further integrated in an APC solution. Proportional mass pull contributions per cell and per line can be inferred from the froth sensors, serving as controlled variables, while pulp level set points serve as the manipulated variables. On-off tests indicated that the advanced process control solution provided increases in yield and product quality.

Sep 1, 2021

By J-N. Oyourou, R. McCrindle, C. J. S. Fourie

"Many mines in South Africa were inappropriately closed and left unattended during the last century. These old mines are potential sources of environmental pollution and may pose a health risk to local populations, since the surrounds contain elevated levels of toxic elements. Soil from the old Edendale lead mine property in Mamelodi Extension 11, east of Pretoria, which was suspected to be contaminated with lead, was analysed. The mine, which primarily extracted galena, was decommissioned in 1938. During this study, the old mine property and surrounds were screened for zinc and lead using a field-portable X-ray fluorescence (pXRF) spectrometer. The metal concentrations, which ranged from 18 to 7 300 mg/kg for zinc and from 50 to 21 000 mg/kg, for lead, were plotted together with the GPS coordinates to produce a concentration distribution map for lead and zinc. This map revealed three anomalies of unacceptably high concentrations, possibly corresponding to areas where ore had been piled or dumped to waste from the old mine. Thirty-six of the soil samples that were analysed by pXRF on site were selected and analysed in the laboratory using inductively coupled plasmaoptical emission spectrometry (ICP-OES) for verification purposes. The zinc and lead concentrations obtained from the two analytical methods were compared using linear regression analysis. Excellent correlation was obtained between the results from the two methods (r2 = 0.99 for zinc and r2 = 0.95 for lead). IntroductionEarly economic development in South Africa was based mainly on mining. However, these activities left a legacy of approximately 6 000 improperly closed mines scattered throughout the country (SAI, 2009; van Schie, 2012). Due to their proximity to settlements, these abandoned mines may pose a potential health risk to humans and an environmental hazard. Mining activities generate large amounts of waste, mostly in the form of overburden and process tailings, which often contain high concentrations of toxic elements. Bioavailable toxic elements can contaminate crops growing in the polluted area (Kala, 2010; Marwa, Meharg, and Rice, 2012) or eventually migrate and detrimentally affect the groundwater (Rösner and van Schalkwyk, 2000). Moreover, sulfides accumulated in mine waste generate acid minewater (Rösner and van Schalkwyk 2000). Unfortunately, owners of mines, closed before the promulgation of the Minerals Act more than twenty years ago (Act 50 of 1991), avoided the compulsory rehabilitation of the environment enforced by this legislation. Toxic elements, such as lead, which were confined within ores, may become exposed through mining and are therefore more easily mobilized within the environment. Elements essential to human and plant metabolism, such as zinc, when exposed by mining activities, may become hazardous due to elevated concentrations (Aslibekan and Moles, 2003; Wuana and Okiemen, 2011). Humans exposed to potentially toxic metals may experience harmful effects as discussed elsewhere (Nriagu and Pacynar, 1988; Wayne and Ming-Ho, 2005)."

Jan 1, 2019

By M. Kumral

A mining system consists of many sub-systems such as drilling, blasting, loading, hauling, ventilation, hoisting and supporting. During mining operation, these sub-systems may experience various problems that stop the operation because of possible environmental equipment and safety issues. In order to ensure delivery contracts in the required quality and safe mining medium, the operation should be, at least, performed in the specified reliability level of the system. If the system reliability decreases below the specified level, there will be safety and financial losses for the mining company. Therefore, the mine should be maintained by a reconstruction procedure to guarantee the operation continuity. Given that each sub-system has a different reliability function and maintenance cost, the determination of reconstruction time will be a complicated decision making problem. In this paper, the determination of reconstruction time is formulated as a nonlinear optimization problem and solved by genetic algorithms (GA). A case study was conducted to demonstrate the performance of the approach for an underground operation. The results showed that the approach could be used to determine the best action time. Keywords: mining system; genetic algorithms; reconstruction time; reliability analysis

Jan 1, 2009

By J. Sepulveda

"Despite the recognized influence of product fineness on line capacity and downstream process performance, few mineral concentrators today use particle size measurement of the final product in automatic control applications for particle size. ‘Near-line’ particle size instrumentation has existed for decades and is utilized in modern concentrators, but low availability and measurement frequency, due to problems with slurry sampling and transport systems, make these technologies unreliable for use in automatic control. An innovative technology for real-time particle size measurement on individual hydrocyclones, named CYCLONEtrac™ PST (particle size tracking), has been developed by CiDRA Minerals Processing, and proven in commercial installations, demonstrating near 100% availability with minimal maintenance requirements, thus overcoming the limitations of previous technologies. Potential stakeholders require convincing, reliable information regarding the economic value delivered by automatic grind control projects. In this paper we present a methodology for estimating such value with the CYCLONEtrac™ PST technology, and demonstrate unique opportunities to improve process stability and performance. Based on actual plant data accumulated over time, the evaluation approach assesses and highlights the significant potential process improvement that can be expected with the particle size tracking technology. As an extension of previous work, in this paper we present the key operating criteria for optimizing the production of valuable metals and increase mill throughput by identifying the optimal grind size. As this requires operating closer to the process boundaries, accurate real-time particle size measurements, such as those provided by the CYCLONEtrac™ PST system, become essential for achieving the maximum potential value from every operation. For further illustration, data from three different copper plants is compared.Introduction Owners and operators of mineral concentrators constantly search for the most economically attractive way to increase the output of valuable metal. A logical approach is to identify a key parameter that has the greatest impact on the performance of multiple stages of the process and then use a holistic analysis methodology to determine how this key parameter can be controlled to optimize the final output.Particle size is widely recognized as such a key parameter; however, very few concentrators today use real-time particle size measurements for automatic control of the final product size due, to a large extent, to the inherent limitations of existing technologies. ‘Near-line’ particle size measurement instrumentation, which has been used for decades, typically suffers from low availability because the fundamental measurement technologies were developed for other, less demanding industries and then adapted to the harsh environment of the typical mineral concentration process. An outline of the key differences among the available technologies used for particle size measurement in comminution circuits has been completed in previous work, and plant data has proven the benefits of measurements on individual cyclones – something that, until now, has not been possible (Cirulis, 2017)."

Nov 1, 2018

By H. Manurung, I. M. Bendiayasa, W. Astuti, and H. T. B. M. Petrus, F Anggara, K. C. Wanta

The leaching kinetics of cerium (Ce) and yttrium (Y) in sodium-hydroxide-digested non-magnetic coal fly ash using acetic acid were investigated. The variables analysed were pH, solid-to-liquid ratio (S/L), and temperature. The results show that cerium and yttrium's maximum recovery was 57.33% and 58.36%, respectively, under leaching temperature of 90°C for Ce and 60°C for Y at pH of 1,74 and 10 g/mL solid-liquid ratio in 240 minutes. Increasing the leaching time to more than 120 minutes did not significantly improve the results. After the magnetic separation process, the ICP-OES analysis shows a slight increase in the concentration of cerium and yttrium on nonmagnetic components. The XRD and ICP-OES analysis for the sample before and after silicate digestion shows that 40% silicate was dissolved. The calculation of apparent activation energies of leaching using the Arrhenius law for the leaching of cerium and yttrium gives 22.72 kJ/mol and 35.84 kJ/mol, respectively. The kinetic leaching model of cerium and yttrium all fit Dickinson's new shrinking core model. The calculation results show that the leaching reaction is controlled by combining interface transfer and diffusion across the product layer.

Nov 6, 2024

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