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The aim of this investigation was to study the influence that varying production rates have on iron sinter quality. This was done by performing sinter pot tests at different pressure drops over the sinter bed, namely 11 kPa and 15 kPa (for 500 mm total bed depths). During each of the sintering processes temperature-time profiles were recorded of the top, middle and bottom layers of the sinter bed. On completion of the sinter process the sinter cakes were divided into top, middle and bottom layers. The physical properties of each layer were subsequently characterized by performing a tumbler test and a sieve analysis. A comprehensive mineralogical study was also conducted on each layer. This study revealed that sinters of similar cold strength could be produced under the examined production rates. However, a higher production rate was accompanied by an increased amount of fines. The cold strengths of both sinters significantly increased from the top layer to the bottom layer of the sinter bed. This strength variation is not related in any simple way to the phase composition. Keywords: Sinter, sinter bed, production rate, phase composition, cold strength, tumbler index, sieve analysis, temperature-time profile

Jan 1, 2003

By F. Yang, S. S. Long

Mixed fatty acids, such as oxidised paraffin soap, are frequently used as a substitute for oleic acid in flotation of scheelite in China. Not only because it is cheaper than oleic acid, but also because it is superior in flotation performance to oleic acid. This superiority is generally attributed to the mixed fatty acids' synergistic effect. In this paper, the synergistic effect of oxidised paraffin soap was investigated. We found it mainly consists of a series of saturated fatty acid salts, with six to nineteen carbon atoms. All the contained fatty acids were classified into four groups based on their chain length to make the research work practical. Also, the groups were labelled as 1, 2, 3, and 4 in order. The research was simplified into studying the synergistic effect of four equivalent collectors, instead of fourteen fatty acids. It is justified by the fact that neighbouring fatty acids are expected to have a similar flotation performance. The synergistic effect of the four groups of fatty acids was studied by single-mineral flotation with single groups, binary mixtures, ternary mixtures, and the full component, as collector respectively. The flotation performance index and synergy value were introduced to evaluate flotation performance and synergistic effect of groups, respectively. The results show that the mixture 1+2+3 has the strongest synergy of all followed by the mixtures 1+3 and 2+3. The mixture 3+4 and 1+2, on the other hand, have negative synergy. The synergistic effect of mixtures of groups indicate that being consecutive in length and a broad range of lengths are vital for fatty acids to enhance synergy. Group 3 is fundamental for the collecting action of 733 oxidised paraffin soap in the flotation of scheelite. The fatty acid soap in group 4 is not suitable for flotation due to its low solubility. Keywords: Mixed collectors, synergistic effect, scheelite

Jan 1, 2020

By L. A. Sandham

Environmental impact assessment (EIA) in South Africa is administered by the Department of Minerals and Energy (DME) for the mining industry, and the Department of Environmental Affairs and Tourism (DEAT) for all other sectors. Thus far, EIA research has focused on the process under the auspices of DEAT but none has focused on the EIA process that has been mandatory in the South African mining industry since 2004. Using the Lee and Colley(Lee et al.13) review package as a basis, a review model specifically tailored to the needs of the mining industry was applied to review the quality of a sample of 20 environmental impact reports (EIRs)approved by the DME. Results reveal that 85% of the EIRs are of a satisfactory quality. Presentational and descriptive components generally achieved higher quality grades than the analytical components such as impact magnitude and alternatives. The results show that in spite of some areas of weakness, and in spite of being conducted in terms of different legislation, EIR quality in the mining sectors appears to conform to the overall standard of quality of EIRs in other sectors in South Africa, and is also on a par with quality abroad. Hence, despite the criticism that DME is usurping the role of DEAT, it is concluded that EIRs of comparable standard are being produced, and that the quality of EIRs in the mining sector do not provide supporting evidence for this criticism. However, EIR quality is only a single aspect of EIA effectiveness, others including action and implementation of EIA proposals and mitigation measures.

Jan 1, 2008

By T. M. Louw, L. Auret, S. M. Bradshaw, F. F. Noelle

Modern industrial processes undergo frequent process state shifts due to changes in demand, feedstock or maintenance operations. Multimodal continuous process monitoring is therefore required for effective plant operation. Steady state analysis is a key component in effective multimodal monitoring. Various issues still remain in determining the starting and ending times of transition states. High dimensionality of process data is a characteristic that makes it difficult to select variables to consider when conducting steady state analysis. In order to address these problems, steady state detection on the principal component space is proposed. First, data undergoes principle component analysis to reduce dimensionality, then existing multivariate steady state detection algorithms are applied on the principle component scores. A novel algorithm, threshold PCA-SSD, is proposed and compared to an existing technique for steady state detection. The algorithms are investigated on high dimensional synthetic data Keywords: Multimode process, steady state detection, principle component analysis

Jan 1, 2020

By L. Bbosa

Paper written on project work carried out in partial fulfilment of BSc (Hons) (Eng) (Mechanical) degree Discrete element methods (DEM) are being used to provide detailed impact histories of the particles in comminution devices, such as mills. To match this immense detail of information, far more informative breakage tests than those that are generally conducted are now required. The split Hopkinson pressure bar apparatus is used in this study, as it allows the calculation of breakage forces and absorbed energies. The geometry of rock particles has been identified as significant, so this project undertook to identify the influence of shape on the breakage pattern of blue stone. Comparisons are then made between the breakage pattern of angular rocks and rounded, milled rocks for single impact fracture and consecutive impact loading at low energy. Results of this experiment indicate that although breakage for both geometries occurs over a similar energy range, rounded particles have the greater probability of fracture because they absorb more of the impact energy for a given loading. Size distributions of progeny show that five pebbles or more are sufficient to predict the distribution of most particles in small energy regimes. Cumulative impact testing shows that considerably more energy is required to break a rock through cumulative damage than through a single impact?this is of considerable importance in the light of the indications from DEM simulations that most breakage in a mill will be from cumulative damage rather than single impact breakage.

Jan 1, 2006

By Z. Hou

ABSTRACT: Short-term strength, damage and healing boundaries for rock salt are experimentally determined and integrated into the Hou/Lux-MDS damage-healing model. This model can be used to describe the mechanical behaviour of rock salt during a damaging process (under high stress to strength ratios) as well as during a healing process (under very low stress to strength ratios with high confining pressure). The development of the damage and the stress to strength ratio in the excavation damaged zone (EDZ) of a storage cavern under a minimum internal pressure as well as the development of the healing of damage and the stress to strength ratio under a subsequent maximum internal pressure are investigated project-related. The results of the investigation make it possible to shift the permissible minimum pressure boundary down, allowing the optimisation of decisive economic characteristics of storage caverns. RÉSUMÉ: Le comportement court terme, l’endommagement et les conditions de colmatage pour le sel gemme ont été étudiés expérimentalement et intégrés dans le model endommagement-colmatage Hou/Lux-MDS. Ce modèle permet de décrire le comportement mécanique de sel gemme pendant le processus d’endommagement (sous fort rapport contrainte-résistance) et le comportement du processus de colmatage sous très faible rapport contrainte-résistance avec forte pression de confinement. Le développement d’endommagement et le rapport de contrainte-résistance dans une zone d’endommagée (EDZ) d’une cavité de stockage avec un maximum de pression de soutènement ont été étudiés. Les résultats de cette étude permettent de conclure qu’il est possible de baisser la pression de soutènement, et par conséquent d’optimiser les caractéristiques économiques décisives des cavité de stockage. ZUSAMENFASSUNG: Für Steinsalz werden Festigkeits-, Schädigungs- und Verheilungsgrenze experimentell ermittelt und in das Schädigungs-Verheilungs-Modell Hou/Lux-MDS integriert. Damit kann das mechanische Verhalten von Steinsalz sowohl bei einem Schädigungsprozess (mit hohen Ausnutzungsgraden) wie auch bei einem Verheilungsprozess (mit niedrigen Ausnutzungsgraden) beschrieben werden. Projektbezogen werden die Schädigungs- und Ausnutzungsgradentwicklung in der Auflockerungszone einer Speicherkaverne unter einem minimalen Innendruck sowie die Verheilungs- und Ausnutzungsgradentwicklung unter einem anschließenden maximalen Innendruck untersucht. Die Untersuchungsergebnisse erlauben, die zulässige Minimaldruckgrenze nach unten zu verschieben, so dass entscheidende wirtschaftliche Kenngrößen von Speicherkavernen optimiert werden können.

Jan 1, 2003

By R. Boom, L. Holappa

In the present paper, microstructure changes of solid-state reduction of industrial chromite pellets and lumpy ore were investigated with SEM/EPMA. To simulate the reactions in the packed bed zone of the Submerged Arc Furnace (SAF), carbon monoxide was used as the reducing agent, with the presence of graphite in proximity to chromite. The experiments were carried out at 1500 °C. Scanning electron microscopy was used to observe and analyse the structure and composition changes of the chromite samples. It was found that reduction of lumpy ore generally took place slower than that of pellet. In all samples, chromite reduction proceeded faster in the outer part of the sample than in the centre part. The reaction mechanism is discussed on the basis of experimental results and earlier investigations. The possibilities to optimize the FeCr production process are also discussed.

Jan 1, 2007

By R. Flatabø, K-E. Johansen, L. Hunsbedt, P. M. Cowx, J. A. Bustnes

Eramet and Tinfos are two producers of manganese alloys in Norway, which have worked hard for several decades to improve both the internal and external environment. Furnaces producing ferro- and silico- manganese alloys generate large amounts of off-gas that contains substantial amounts of dust, heavy metals and organic by-products. The dust is separated from the gas in venturi scrubbers by washing with water. The water is cleaned and recirculated, and the surplus water coming from moisture in the raw materials, is discharged to the adjacent fjords after further treatment. Emission figures show that the discharge of suspended solids, manganese, zinc and PAH (polycyclic aromatic hydrocarbons) have been reduced substantially over the last three decades as a result of process improvements and installation of state of the art environmental control measures. The two plants were the first world wide to install mercury cleaning of the off-gases from the furnaces. Mercury emission reduction has exceeded 90%. Concerning other environmental issues, such as utilisation of off-gases for energy recovery and chemical purposes, both plants have achieved good results. Major effort in the environmental work has come from the plants themselves, but other players like FFF, The Norwegian Ferroalloy Producers Research Association, and SFT, The Norwegian Pollution Control Authority, have contributed to the achieved results.

Jan 1, 2007

By F. T. Cawood, M. N. M. Cudjoe

The ability to conduct real-time material tracking in mines has been a long-standing challenge. Technological innovations such as radio frequency identification technology (RFID) have over the years contributed to the effective tracking of material flow and reporting of metal content. This paper outlines the laboratory procedures and results from testing the suitability of microdot technology as a viable technique for real-time material tracking in mining. The paper clarifies the reasons for conducting the test and presents the material safety data sheet (MSDS) from a South African and Canadian perspective. Microdots from three aerosol systems were immersed in water, heated to 100°C, and crushed into coarse and fine material. These tests were used to ascertain if the technology could withstand mining conditions. A strength, weakness, opportunity, and threat (SWOT) analysis was used to evaluate and compare microdot technology with RFID. It was shown that microdot technology has some potential to track ore parcels because data integrity was retained after exposure to post-blast mining conditions. However, more improvement is required to digitally detect microdots before the technology can be implemented at scale in the mining industry.

Apr 2, 2022

By O. Leuangthong, M. Nowak

"The impact of high-grade data on resource estimation has been a longstanding topic of interest in the mining industry. Concerns related to possible over-estimation of resources in such cases have led many investigators to develop possible solutions to limit the influence of highgrade data. It is interesting to note that the risk associated with including high-grade data in estimation appears to be one of the most broadly appreciated concepts understood by the general public, and not only professionals in the resource modelling sector. Many consider grade capping or cutting as the primary approach to dealing with high-grade data; however, other methods and potentially better solutions have been proposed for different stages throughout the resource modelling workflow.This paper reviews the various methods that geomodellers have used to mitigate the impact of high-grade data on resource estimation. In particular, the methods are organized into three categories depending on the stage of the estimation workflow when they may be invoked: (1) domain determination; (2) grade capping; and (3) estimation methods and implementation. It will be emphasized in this paper that any treatment of high-grade data should not lead to undue lowering of the estimated grades, and that limiting the influence of high grades by grade capping should be considered as a last resort. A much better approach is related to domain design or invoking a proper estimation methodology. An example data-set from a gold deposit in Ontario, Canada is used to illustrate the impact of controlling high-grade data in each phase of a study. We note that the case study is by no means comprehensive; it is used to illustrate the place of each method and the manner in which it is possible to mitigate the impact of high-grade data at various stages in resource estimation."

Jan 1, 2015

By C. Atilla Öztürk

Determining the cutability and mechanical properties of rocks is vital for the feasibility studies of a mine or tunnel projects. Many scientists have investigated the correlation between these parameters in order to predict specific energy (SE) and other important rock cutability properties for many years. On the other hand, textural properties of rocks have been quantified in detail by Howarth and Rowlands (1987). Hence, it was possible to correlate mechanical and textural properties of rocks by using a parameter known as the texture coefficient (TC). The main objective of this study was to use the test results taken from a research project carried out by Bilgin and Shahrair1tocorrelate the mechanical and cutability properties of rocks with textural properties of rocks. For this purpose, uniaxial compressive strength (UCS), uniaxial tensile strength (UTS), cone indent or (CI),point load index (PLI), unit volume weight (?), porosity, SE, and normal and cutting force values, were correlated with textural properties of rocks. Hence it was possible to make illuminating interpretations about the relationships between the mechanical and cutability with the textural properties of rocks. Keywords: Cutting properties, mechanical properties, specific energy, texture coefficient.

Jan 1, 2004

By A. Bhattacherjee

The Shewhart [X]?and R charts are still the most popular control charts in use today for continuous monitoring of quality data. However, for these charts to function properly, the underlying assumption of normality and independence of data must be satisfied. When either independence and/or normality of data are not present, which is a common feature of ore quality data, an application of the conventional Shewhart [X]?and R charts may introduce false alarms in the analysis of the data. To address these issues, a guideline is proposed for construction of appropriate univariate and multivariate control charts for a variety of situations. A use of this guideline to a bauxite mine suggested the construction of special cause control chart for the analysis of individual variables namely, Al2O3% and SiO2%; whereas, the multivariate T2 chart based on residuals is proposed for the bivariate analysis of the variables. The case study clearly revealed that without considering the data correlation, one may be in a state of false impression about an out of control condition while using the Shewhart [X]?and R charts for univariate and the Hotelling T2chart for multivariate analysis. To compare the effectiveness of the control charts, specifically the Shewhart [X]?and the special cause control charts, a simulation study was conducted. It was found that the conventional Shewhart chart provided lower probability of coverage than the special cause control chart. It was also revealed that the quality specification of Al2O3% is met as the variation of Al2O3% is well within the specification limits; whereas, it is difficult to meet the quality specification of SiO2% on a regular basis.

Jan 1, 2002

"Chairman: Dr R. E. ROBINSON Rapporteur: Dr R. P. COLBORNPapers:The simulation of crushing plants by W. J. WhitenSimulation of multi-component flotation plants by B. K. Loveday and G. R. MarchantComputer control of flotation at the Ecstall concentrator by M. P. Amsden C. Chapman and M. G. ReadingModel for the design and control of flotation plants by R. P. KingIn presenting his paper Dr W. J. Whiten outlined the basic concepts on which the control model was based and emphasized the fact that empirical models based as much as possible on theory were used to simulate each unit of the crushing plant. The final parameters of each model were computed using data collected from the plant. Unfortunately, the system did not permit accurate extrapolation but was successful when operating in the region from which the parameters were calculated.He concluded from the results of the test work that the crusher amperage was a critical parameter and that the utilization of the model gave a 15 per cent increase in the plant output. This was because the model predicted that a marginally fine grind would provide a significant increase in throughput. Dr Whiten elaborated on what constituted the multiple spline regression, explaining that it was a least-squares curve-fitting technique in one or more dimensions, where the calculation of coefficients in analytic expressions was replaced by the calculation of typical points on a very smooth curve called a spline function. The emphasis was placed on the shape and value of the curve or curves instead of on the coefficients as in analytic regression. A spline function was the line drawn between all points constituting the data set.Dr B. K. Loveday commented that the simulation was unusual in that the optimum throughput was considered to be the maximum throughput, which, surely, was limited by the crusher size. He also emphasized the importance of the interaction between both crushing and grinding circuits and added that in practice the optimum operating conditions were inter-dependent. Dr Whiten replied that in the case of the plant under consideration, the crushing process was not, in fact, the limiting operation.Mr C. E. Clifford indicated that the model was being used to simulate a number of crushing and grinding circuits at Mount Isa Mines. He reported that the model simulated the circuit satisfactorily for primary and secondary gap settings of 0,625 in. to 0,375 in., but that adjustment had to be made to the model parameters for gap settings of 0,250 in. to 0,125 in.In reply to a question from Dr D. M. Hawkins, Dr Whiten said that he preferred to use low-order splines with smaller segments rather than high-order spline functions with large segments."

Jan 1, 2014

By P. van der Steen

This paper examines the historical developments in diamond beneficiation technology and the impacts on the industry. The art of diamond beneficiation has given way to the application of scientific process, but at considerable capital expenditure. The shift in beneficiation methodologies has been disruptive to the traditional skills set of the industry, but evolutionary change continues and has been beneficial to the quality of the final product.

Jan 1, 2010

By G. C. Smith

Process control applications in the minerals processing industry have grown extensively over the years due to the many benefits derived, both financially and operation-wise. Although control theory is widely known, conventional control does not address many of the problems posed by minerals processing circuits. Some of these problems include interactions between process units, large dead times, few and sometimes unreliable measurements of process variables, non-linear systems, disturbances entering the process, processes with varying dynamics, and many more. For the past 26 years Mintek has been active in the field of providing specific, customized solutions for the minerals processing industry. This paper focuses specifically on applications in milling and flotation control. The underlying control principles have been applied to a wide range of other processes including submerged arc furnaces. Advanced control application is implemented on a common advanced control platform, called the PlantStar. Much innovation has been brought to the fore in terms of adapting theoretical techniques and developing new methods to resolve specific milling and flotation circuit issues by using process control. The general approach adopted by Mintek when implementing advanced control is to enforce stabilization of the process as a solid foundation for optimization strategies to be built upon. In doing this, a robust control solution is presented, and the end result is flow and level stability, better product quality regulation, increase in throughput and a stable feed to downstream processes. The MillStar advanced milling control system ensures that the milling circuit is at all times easy to operate while achieving optimum product quality and throughput. Stabilization should include product size regulation and sump level control. Another important aspect of stabilization control is the handling of milling circuit constraints without introducing cyclical behaviour and with minimal disturbance to the final product quality. Process constraints may include factors such as process water limitations, cyclone feed density, and cyclone underflow angle. An optimization strategy should be developed to increase the mill throughput without affecting product quality or introducing mill overloads. The relationship between solids feed and power draw is examined and manipulated for optimization. The interactive nature of flotation circuits and the presence of recirculating streams tend to make satisfactory control almost impossible with conventional techniques such as PI (Proportional plus Integral) or PID (Proportional, Integral and Derivative) control. The FloatStar Level Stabilizer simultaneously considers all the flotation levels in a circuit by use of a multivariable algorithm, and takes compensating action in anticipation of disturbances. The FloatStar Flow Optimizer is an optimization strategy that controls the concentrate flow rate between various sections of a flotation circuit (e.g. Rougher ?Cleaner; Cleaner ?Recleaner). By controlling the concentrate flow between the sections, the mass pull, circulating loads and residence times of the circuit can be stabilized, thereby enhancing the performance of the flotation process. Optimizing grade and recovery are coupled with the dynamic optimization of circulating flows. The FloatStar Grade-Recovery Optimizer will maximize the grade in a section, whilst ensuring that recovery or any other process specific limits remain within predefined limits. With successful applications on several milling and flotation plants worldwide processing amongst others PGMs, gold, copper and nickel, Mintek has shown that it is a leader in milling and flotation control innovation

Jan 1, 2004

By C. Musingwini, A. S. Nhleko, M. J. Mahase

"In an environment like the mining industry, which is characterized by different stakeholders with multiple objectives, multi-criteria decision analysis (MCDA) is a useful approach for optimal decision-making. The application of MCDA techniques in the mining industry has predominantly been in mine planning and related problems, although no comprehensive survey has previously been undertaken to establish the application trends. A survey of the use of MCDA techniques was therefore conducted using case studies from the literature. It was noted that often two or more methods are applied to the same problem in order to increase confidence in the solution derived. As the number of criteria and alternatives increases, some methods become inefficient. A combination of the analytic hierarchy process (AHP) method with other MCDA techniques was the most frequently used approach, indicating the efficiency of the AHP method, especially when evaluating problems with more criteria and fewer alternatives. A combination of fuzzy theory with AHP or other methods incorporates uncertainty. The findings from the survey will benefit users applying MCDA techniques to solve mine planning and related problems.IntroductionA country’s natural resources serve the needs of different groups of people within the country. These different groups are collectively known as stakeholders (Herath and Prato, 2006). Stakeholders have different needs, preferences, and expectations, which describe and define the criteria to be considered in decision-making. The options available as solutions describe the alternatives in decisionmaking theory. The criteria and alternatives have to be evaluated simultaneously when making decisions, and this is when multicriteria decision analysis (MCDA) techniques become invaluable (Herath and Prato, 2006) because the human mind is considered to be limited when solving complex and intangible problems with several criteria and alternatives (Saaty, 2007). MCDA techniques belong to a broad group of techniques called multi-criteria decision-making (MCDM) techniques. The other group of techniques within MCDM comprises the multi-objective decision-making (MODM) techniques. MODM techniques are generally used to solve problems with an infinite number of alternatives, while MCDA techniques are generally used to solve problems with a finite number of alternatives (Musingwini, 2010)."

Jan 1, 2016

By T D. Sullivan

Risk lies at the heart of all mining and nowhere more so than in pit slope design. Mining is principally about two areas of risk; safety and economics. This paper addresses the main elements of pit slope design and presents a view of the state of the art in terms of safety, design, prediction of performance, success and pit slope management. There has been a recent trend for serious injury and fatalities due to stability in open pit mines. The causes and contributing factors are analysed in relation to geotechnical knowledge, pit slope design and management. Currently there is no standard classification system for mine slope designs and it is considered doubtful if a universal system is possible. Designs are usually formulated in accordance with many different methodologies, various engineering principals and a number of different philosophical approaches, with results often presented in terms of Factors of Safety or Probabilities of Failure. However wide experience has demonstrated that even with apparently detailed engineering investigation and analysis at Feasibility Level, at the Operating Stage mine slope angles are regularly subject to large changes. The general experience is that these changes are ± 5° and 16° overall, which is considerably outside the accepted order of accuracy. For large deep mines these are huge changes and represent significant risks to the operations. The current state of practice in pit slope design is examined for two stages, feasibility and operating.

Jan 1, 2006

By N. L. Ayres

Tendon support systems have been successfully used to stabilize excavations. Tendon support systems are routinely designed using the axial load-bearing capacity of tendons, namely the tensile strength. To attain tensile strength the tendon must be loaded along its length, which often does not occur in practice. Tendons should optimally be installed at 90° to the surface of the excavation to achieve maximum penetration depth, yet this is often not physically or practically possible, and installations at angles less than 90° occur. Furthermore, the intersection of geological features within the rock mass frequently results in complex loading situations on tendons. The position and angle at which loading occurs results in different combinations of tensile and shear forces acting on the tendon, which can impact on the support performance of each unit and ultimately the whole system. All factors that influence the support system should be understood and taken into account to ensure a sound support design. Combination loading situations are further investigated and tested to obtain a better understanding of the mechanisms involved and the effects on tendon load-bearing capacity. Tendon support units were tested at different installation angles to establish the tendon performance, mechanical behaviour, and load capacity during these loading situations. The results and outcomes are aimed at providing rock engineers with additional data and improved understanding of how tendons could perform under certain conditions.

Jan 1, 2014

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 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