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Professor R.P. King holds a Ph.D. degree in chemical engineering, which he obtained at the University of Manchester in 1963. After that he lectured in the Departments of Chemical Engineering at the Universities of the Witwatersrand and Natal. From 1968 to 1973, he was Leader of the Chemical Engineering Research Group of the National Institute for Metallurgy at the latter University. Mr C.E. Fivaz, Pr. Eng., is Chief Consulting Metallurgist of Rand Mines (Mining & Services) Limited, and is responsible for the metallurgical activities of the Gold and Uranium Division and the Coal and Base Minerals Division of the Group.

Jan 1, 1984

By P. R. Jochens, D. D. Howat, C. W. Wolhuter

Prof D. D. Howat (Member): I am a man with a grievance this afternoon. The other authors of the paper entered into a conspiracy to ensure that I presented the paper, and finally even had the audacity to say that this was the least that could be expected from me as I had done so little of the other work. Looking at the distinguished audience here that includes some figures who have forgotten more about cement that some of us have ever learned, I realise how right the other authors were. I feel very much cast in the role of the fool who was pushed in where angels fear to tread. I hesitate to say, Sir, that I would not use the word angels in any definition of the authors of this paper. In presenting the paper, may I try to put forward a few simple points about cement that are probably as little known to the majority of the audience as they were to me-at least until very recently. Concrete, made by mixing Portland cement, sand, crushed rock and water is the most widely used constructional material in the world. Generally the production of actual Portland Cement is about two-thirds that of steel and by the time this is formed into concrete the total is about five times the world tonnage of steel produced. A very rough approximation suggests that world consumption of concrete is about one ton per person per annum. Apart from fresh water mankind consumes no other material in such quantities. What mankind originally required was a mortar to be used for joining blocks of stone or bricks. Such mortar was originally made from limestone burned in a kiln and then mixed with water. Production of mortar of this type began over 5,000 years ago. Some samples from pyramids in Egypt have shown this mortar to be in good condition although over 4,500 years old. The progress of technological development was very slow until 1824 when an English bricklayer, Joseph Aspidin, patented a new mortar material which he made by burning limestone and clay together in his kitchen stove. Aspdin called his product 'Portland Cement' because, in colour, it resembled a well-known building stone quarried in the Isle of Portland on the south coast of England. Aspid's same types of raw materials are used today in modern cement production and the product is still referred to as Portland cement. A lime-containing material such as chalk or shell and a clay-type material such as shale, slate or clay itself, are mixed in the required proportions, ground and fed to a kiln where the minimum burning temperature is about 1,500°C. The raw materials react to form hard chunks of a material known as 'clinker'. About 5 per cent of gypsum is added to the clinker and the mixture is then ground to a very fine powder, the function of the gypsum being to control the rate of setting of the concrete. The key oxides in cement production are lime, silica, alumina and iron oxide. The possible reactions occurring during and the products of the burning process are shown in Table I.

Jan 12, 1968

By P. M. Cole

An unprecedented expansion of the global zinc industry is currently under way. While most new projects and plant upgrades remain committed to traditional processing technologies, recent advances in zinc solvent extraction (SX) have created opportunities for new process routes for both primary and secondary materials. The first commercial plant to use zinc SX for the mainstream processing of a low-grade ore is under construction and promises to become one of the lowest cost zinc producers. Several other oxide and sulphide projects in various stages of feasibility are considering the inclusion of SX in their process flowsheet. Zinc SX has also proved advantageous in the reprocessing of secondary materials, particularly for the treatment of zinc residues and furnace dusts. This review focuses on recent installations and projects underdevelopment that feature zinc SZ as the key separation step.

Jan 1, 2002

By S. C. Everett, I. S. Schache, P. A. Bannister, G. F. Balderson

The Pooncarie Project is located in the Murray Basin region of Australia. This region is a potential new mineral sands province. Due to the geological environment and the lithology of the deposit, these deposits have some technical challenges that need to be addressed prior to their successful development. Within the Pooncarie Project the Ginkgo deposit will be developed first. The technical challenges it presents include its geographical isolation, the requirement to remove substantial quantities of overburden as well as the processing issues raised by the highly weathered nature of the ilmenite family of minerals. Ore characterization bench scale testwork and bulk sample pilot plant programmes have been carried out and the data obtained used to design flowsheets for both the wet plant and mineral separation plant circuits with the flexibility to enable these plants to handle the variable heavy mineral assemblage. In addition to the solving of the processing challenges, technical issues such as removal of overburden for the minimum unit cost, the use of hyper saline water in the dredge pond and the provision of infrastructure, have had to be addressed. None the less, the orebodies making up the Pooncarie Project have many positive features including low slimes content, good rutile and zircon grades and the ability to recover most of the ilmenite family of minerals into acceptable TiO2pigment feedstocks. The development of the project is set to proceed with the establishment of mining operations on the Ginkgo orebody feeding a mineral separation plant at Broken Hill. The initial shipment of products is expected to occur in early 2005.

Jan 1, 2003

By Y. Rao, Y. Huang, G. Wang, W. Liu

The properties and deterioration in strength of cemented tailings backfill (CTB )in the underground acidic environment under oxidizing conditions were studied. X-ray diffraction analysis and scanning electron microscopy of the surface of the CTB was carried out, and the sulphuric acid corrosion mechanism elucidated. The properties tested included compressive strength, elastic modulus, cohesion, internal friction angle, variation in the hydrogen ion concentration, and stress-strain relationship in different corrosion periods. The damage model of the CTB was established considering the effects of parameters such as corrosion time and strain on the damage evolution. It was found that the compressive strength, elastic modulus, cohesion (binder effect), and internal friction angle increased at first and then decreased with exposure time. In the long term, the peak stress decreased with corrosion time while the peak strain increased; elastic modulus, and deformation modulus also decreased. The damage caused by corrosion and by load were related by means of a mathematical model, which revealed the relationships between sulphuric attack, load, and damage to backfill in complex underground environments. During corrosion, the expansion of gypsum and ettringite caused microfractures in the CTB. With increasing corrosion time, micro-cracks developed and proliferated. The mechanism of corrosion damage was found to be the dissolution of hydrogen ions and a sulphate ion reaction that produces an expansive substance, resulting in deterioration of the strength of CTB.

Jun 1, 2021

By V. Mathebula

Paper written on project work carried out in partial fulfilment of B. Tech (Mining Engineering) degree The purpose of this study is to establish whether to mine the Bottom of Pit (BOP)/TOB 4 reserve before the commencement of the Block Cave or whether this should be disregarded and the reserve be extracted at the end of the life of the Cave. The primary goal of this report is to investigate and propose a practical mining method to safely extract the reserve given the set constraints. This report quantifies the additional revenue the TOB 4 will contribute to Finsch?s overall NPV thus enhancing Finsch?s business case and strategically enhancing the SBP. Several underground mining options have been investigated. The proposed mining method includes the installation of a series of extraction tunnels below the TOB 4 reserve from 53 level, with a slot access tunnel system. Ground will be loaded by LHDs from the draw points and tipped into 50-ton dump trucks at a transfer point, from there the ground will be transported to 53 level No. 1groundpass where it will join the existing ground-handling system. Primary development is scheduled to begin October 2002 and last for a period of approximately 7 months until early April 2003.The production is broken into 4 phases. Phase 1 is scheduled to begin mid-April 2003. The final production phase will be completed by November 2005. The production scheduling has been designed in order to remain ahead of the Block 4 undercut in order to ensure stability and safety. Due cognisance was taken of the health and safety of all employees concerned during the design of the mining and ground-handling processes for the Bottom of Pit. As far as is reasonably practicable, the BOP was designed and will be constructed and equipped to provide conditions for the safe operation of machinery and a healthy working environment for people underground. Relevant requirements of the Mine Health and Safety Act regulations pertaining to mining operations have been identified and adhered to during all phases of the design process.

Jan 1, 2004

The depletion of favourably located and higher-grade mineral deposits, combined with more favourable metal prices and higher capital costs, has stimulated research into heap leaching of lower grade ores and wastes. This has resulted in renewed interest in heap leaching of uranium ores, and in the development of processes for the bacterial heap leaching of low-grade chalcopyrite ores and the acid heap leaching of nickel laterites. A complete programme of heap leach testwork typically involves a sequence of bottle roll tests and column tests, followed by piloting on test heaps. The initial testwork is aimed at determining the amenability of the ore to heap leaching, which depends on the characteristic of the ore with respect to porosity and permeability to leach liquor, acid consumption, metal recovery and percolation. Subsequent phases of the testwork focus on the development of the process design criteria for the treatment of the ore. Basic techno-economic models have also been developed as a tool for the initial estimation of heap leach viability. Mintek has also developed in-heap monitoring probes, coupled to an operator guidance system, in order to assist the operator in achieving optimal conditions for bacterial growth and heat preservation during pilot-plant operation.

Jan 1, 2009

By B. M. V. Baloyi, D. Mchabe, D. Chetty

South Africa accounts for the largest global manganese ore production share, primarily from its Kalahari Manganese Field deposit. Despite this, domestic smelting is beset by energy constraints, resulting in most ore being exported for smelting. Mintek is investigating energyefficient pathways for ore reduction, specifically undertaking prereduction tests to reduce energy consumption for manganese smelting. The present contribution considers the effect of methane, anthracite, and holding time, at a fixed temperature, on the extent of reduction of Mamatwan-type ore, primarily from a mineralogical perspective. In particular, the aim was to carburise the monoxide Mn phase to Mn carbide, as this is less energy intensive than producing metallic Mn from the monoxide. Based on thermogravimetric test results, the ore and products from three experiment sets were analysed using X-ray diffraction and scanning electron microscopy to assess the phases and textures present. The findings show that carburisation of manganese monoxide and its equivalents is most advanced under conditions of 8% anthracite, 10% methane, and 60 minutes of holding time, thus confirming with the thermogravimetric data. These results show promise for reducing energy consumption for Mn smelting in ferromanganese production.

Mar 4, 2025

1. Book reviews Underwater tools, by Donald J. Hackman and Don W. Candy. Columbus (D.S.A.), Battelle Press, 1981. 152 pp. $32,95. Reviewer: B. Schmitz Uranium exploration case histories. Proceedings of Advisory Group Meeting Vienna, IAEA, 1981. Price: Austrian schillings 630. Reviewer: E. C. Kostlin Jet cutting technology, a review and bibliography, edited by Robin Brown. Published by BHRA Fluid Engineering, Cranfield, Bedford MK430AJ, England. Reviewer: D. O'Beirne 2. New Books Proceedings, Twelfth Congress of the Council of Mining and Metallurgical Institutions, by H. W. Glen (editor.) Johannesburg, The South African Institute of Mining and Metallurgy, 1982. 2 vols., 1060 pp. R78,85 (air-mail RI53,85). Amborite. Johannesburg, De Beers Industrial Diamond Division (P.O. Box 916), 1982. 6 pp. Free of charge. 3. New Journal BHRA Fluid Engineering has announced its new journal World Ports and Harbour Abstracts and the associated newsletter World Ports and Harbour News, which are issued from January 1983. The Abstracts is published bi-monthly and costs £60 in the V.K. and E.E.C., and £72 elsewhere. 4. Mintek reports Report 2134D On-line analysis, by X-ray diffraction, of fluorsparcontaining slurries. (First published 30th Sep., 1981.) Report 2135D A preliminary on-line analysis, by X-ray diffraction, of pyrite-containing slurries. (First published 30th Sep., 1981.) Report M28 The measurement of flow velocity distribution in fluids. Report M34 The determination, by atomic-absorption spectrophotometryusing electrothermal atomization, of platinum,palladium, rhodium, ruthenium, and iridium. Report M45 Two computer programmes for the calculation of massand heat balances in the production of high-carbon ferromanganese. Report M50 The development of an on-line gold analyser. Report M54 Major amounts of mercury in native gold from upper Witwatersrand sediments. Report M55 A new robust method for the treatment of analytical data. Report M57 The hydrometallurgical treatment of liquors generated by the leaching of a low-grade matte. Awards for inventions For inventing devices of exceptional value to the mining industry, two mining men were presented with awards in Johannesburg on 25th November, 1982, under the Chamber of Mines' Ideas and Suggestions Scheme. Mr W. W. Malan, President of the Chamber of Mines, made the presentations.

Jan 1, 1983

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Jan 1, 2009

By C. A. Young, J. L. Bowden

"Cyclic voltammetry experiments were conducted on copper and chalcopyrite (CuFeS2) in the absence and presence of ethyl xanthate, and compared to mass-balanced EH–pH diagrams. The results for copper duplicate those found in the literature and confirm xanthate chemisorption. However, the, results indicate that chalcopyrite oxidizes to chalcocite (Cu2S) and only afterwards is chemisorption observed due to small currents appearing with xanthate. This phenomenon suggests that the mineral's hydrophobicity is induced by more than dixanthogen and copper xanthate. Hydrophobicity was found to be pH-dependent over a range of alkaline conditions (pH 7–11) at narrow potentials (0 to –200 mV). An EH–pH diagram for chalcopyrite with xanthate is presented to illustrate the conditions under which chalcopyrite would be hydrophobic and thereby more thoroughly explain the results in the literature. IntroductionSulphide minerals are generally concentrated from ores by froth flotation, a physiochemical process that induces separation based on differences in hydrophobicity. In this process, a gas is bubbled into a slurry and the minerals that are hydrophobic (water-repelling) adhere to the bubbles and float to the surface while the hydrophilic (water-loving) minerals remain in the slurry. With sulphide minerals, the hydrophobicity is generally established in two ways. The first is by the addition of a collector, which is a heteropolar molecule with a reactive inorganic head group and an inert organic tail. Typically, the head group bonds with the sulphide mineral surface by adsorbtion either chemically (chemisorption) or physically (physisorption) or by complexing with atoms that solubilize somewhat at the surface (surface precipitation). These interactions leave the organic tail protruding from the mineral surface, thereby inducing hydrophobicity. The second method is by oxidation of the mineral surface to form a layer that is metal-deficient/sulphide-rich or comprised of elemental sulphur. Because the layer mimics naturally hydrophobic sulphur, this enables ‘collectorless’ flotation. Furthermore, this oxidation phenomenon adds an electrochemical dimension to the understanding of sulphide mineral flotation."

Jan 1, 2016

By R. Drummond

The fourth Teetered Bed Separator (TBS) has just been installed in Australia, and trials have been run in many sites. There is a growing recognition of the potential advantages of using TBS technology to treat coal in the ?3+0.25 mm size range, at cut points below 1.60. From these activities, there has been a substantial growth in knowledge with respect to application engineering and operational functions. The paper briefly describes the installations, including flowsheets, and so provides a background to the potential deployment of TBS technology. There are a large number of potential applications for TBS technology, including treatment of fine ROM coal in new plants, or in upgrade situations for re-processing of spiral product, or scavenging coal from coarse tailings. As well, cost effective capacity upgrades are possible by using TBS units for treating the sands size fraction. Issues arising from Australian TBS installations and application engineering are also discussed.

Jan 1, 2002

By M. Cuba

Geostatistical modelling aims at providing unbiased estimates of the grades of elements of economic interest in mining operations, and assessing the associated uncertainty in these resources and reserves. Conventional practice consists of using the data as error-free values and performing the typical steps of data analysis - domaining, semivariogram analysis, and estimation/simulation. However, in many mature deposits, information comes from different drilling campaigns that were sometimes completed decades ago, when little or no quality assurance and quality control (QA/AC) procedures were available. Although this legacy data may have significant sampling errors, it provides valuable information and should be combined with more recent data that has been subject to strict QA/QC procedures. In this paper we show that ignoring the errors associated with sample data considerably underestimates the uncertainty (and consequently the economic risk) associated with a mining project. We also provide a methodology to combine data with different sampling errors, thus preserving the relevant global and local statistics. The method consists of constructing consistent simulated sets of values at the sample locations, in order to reproduce the error of each drilling campaign and the spatial correlation of the grades. It is based on a Gibbs sampler, where at every sample location, the actual sample value (with error) is removed and a conditional distribution is calculated from simulated values at nearby sample locations. A value is drawn from that distribution and kept only if it satisfies some statistical requirements-specifically, the global relative error and local means and variances must be reproduced. All sample locations are visited and simulated sample values are generated iteratively, until the required statistics are satisfactorily attained over all sample locations. This generates one realization of possible sample values, respecting the fact that the actual samples are known to carry an error given by the global relative error. Multiple realizations of simulated sample values can be obtained by repeating the procedure. At the end of this procedure, at every sample location a set of simulated sample values is available that accounts for the imprecision of the information. Furthermore, within each realization, the simulated sample values are consistent with each other, reproducing the spatial continuity and local statistics. These simulated sets of sample values can then be used as input to conventional simulation on a full grid to assess the uncertainty in the final resources over large volumes. The methodology is presented and demonstrated using a synthetic data-set for clarity.

Jan 1, 2012

By B. S. Agbenuvor, R. Morrison, V. Jokovic, C. Antonio

Body breakage usually involves breakage of particles by compression between two surfaces or impacted against a rigid surface, with the latter of interest in this current study. This mode of breakage has been identified to be the most elementary size reduction process and the most effective breakage process in comminution devices. It has been found in the literature that the progenies produced from this form of breakage possess a residual velocity at which they move, after the breakage event. In the pursuit of efficiently utilising applied comminution energy, a laboratory-scale breakage device has been developed to deliver precise specific impact breakage using the concept of a fast-moving hammer and a slow-moving particle to effect breakage. The residual velocities of the progenies from the breakage event may be used to generate secondary breakage without further addition of energy if the particle encounters a stiff obstacle such as a steel plate at right angles to its path. To measure the extent of secondary breakage, the steel wall of the device was lined with a rubber material to suppress the second set of breakage events. The performance of the new device is analysed, based on calculated t10 values and measured residual velocities of the moving daughter particles. Testing involving anvils showed a much finer PSD and higher t10 compared to the test involving rubber lining. This finding is corroborated by the measured residual velocities of the progenies. The resulting energies calculated from the measured residual velocities of the progeny were found to be approximately 42-88% of the primary specific impact energy. This retained energy was found to be sufficient for secondary breakage. Keywords: Impact breakage, residual velocity, secondary breakage, energy utilisation

Jan 1, 2020

By J. S. Harington

Our purpose is to record and to explain the widely changing numbers of the huge total of black workers on the gold mines of South Africa over the century from 1896 to 1996. These men were recruited from up to twenty territories, and their contributions are examined. The major areas providing labour over this long period have been Lesotho, the former Transkei within South Africa and Mozambique. From 1989 to 1996, for instance, these three areas accounted for over sixty per cent of the total labour force (tlf). Our principal Figure 1 shows the tlf fluctuating through time to reach a peak of 480 000 in 1988. Irregular falls are also documented with the most serious in 1995 to 180 000. Based on this graph we consider the political, economic, sociological and historical reasons behind these changing employment opportunities. These have included external world-scale events such as war or depression, as well as internal changes of national economy and policy. We show the importance for numbers employed of the discovery of gold in the Orange Free State in 1946, the influence generally of the ?Winds of Change? and the firm maintenance by the State of law and order. Varying gold production costs and profitability against high tax rates, allied with increasing wages and a lack of development capital, have led in the last decade to employment falling by fifty per cent, despite an actually higher value of gold output. Finally, this analysis considers the role of the migrant labour system as it affects, and is affected by, conditions in the gold mining industry, with special reference to its less than humane consequences in the numerically dominant territories of Lesotho and Transkei.

Jan 1, 2004

By W. Vorster

Bateman Engineering Project's acid-plant track record goes back to 1977. Bateman Engineering can design sulphuric plants based on gas from sulphur burners, metallurgical off gas as well as pyrite roasting systems. Bateman Engineering has a technology marketing agreement with NORAM Engineering Ltd of Canada to provide state-of-the-art, well-proven acid plant technology, and also has access to roaster technology from several sources, including Chinese technology. Utilising the Noram technology agreement, Bateman was awarded the Engineering and Procurement (EP) contract for the Ambatovy Nickel Project, Sulphuric Acid Facilities in 2007. This is the first Greenfield sulphuric acid plant Bateman has designed for many years, producing a combined 5,500tpd, and is one of the largest sulphur burning acid plants in the world. This paper gives an overview of the sulphuric acid plant for the Ambatovy Nickel Project, advantages of Noram?s unique technology on offer, an overview of work conducted on a recent study of an pyrite roasting acid plants as well as a new technology currently being developed by Bateman for the direct combustion of solid sulphur to form sulphur dioxide.

Jan 1, 2009

By W. Vorster

Bateman Engineering Project's acid-plant track record goes back to 1977. Bateman Engineering can design sulphuric plants based on gas from sulphur burners, metallurgical off gas as well as pyrite roasting systems. Bateman Engineering has a technology marketing agreement with NORAM Engineering Ltd of Canada to provide state-of-the-art, well-proven acid plant technology, and also has access to roaster technology from several sources, including Chinese technology. Utilising the Noram technology agreement, Bateman was awarded the Engineering and Procurement (EP) contract for the Ambatovy Nickel Project, Sulphuric Acid Facilities in 2007. This is the first Greenfield sulphuric acid plant Bateman has designed for many years, producing a combined 5,500tpd, and is one of the largest sulphur burning acid plants in the world. This paper gives an overview of the sulphuric acid plant for the Ambatovy Nickel Project, advantages of Noram?s unique technology on offer, an overview of work conducted on a recent study of an pyrite roasting acid plants as well as a new technology currently being developed by Bateman for the direct combustion of solid sulphur to form sulphur dioxide.

Jan 1, 2009

By L. Forsbacka, L. Holappa

Viscosities of quasi-ternary CaO-SiO2-CrOxmelts in contact with metallic chromium were measured by the rotating cylinder method up to 1750ºC. Twelve slag compositions were selected in the composition range 20–55 wt% SiO2, 10–45 wt% CaO and 10–60 wt% CrOx. Estimation of the amounts of CrO and Cr2O3was made by regression analysis based on the earlier data. Professor Iida’s (Osaka University) viscosity model was applied and model parameters (0CrO,CrOand Cr2O3) were evaluated. The Iida model gave good consistency with the measured viscosity values.

Jan 1, 2004

By R. Xie, J. Liu, Y. Zhu, Y. Li

The surface chemistry features of spodumene and feldspar were investigated by XPS, zeta potential measurements and first principle calculation. The results indicated that the zeta potential of feldspar was more negative than that of spodumene. The most possible active sites on spodumene and feldspar were Al sites and O sites. However, the number, type and activity of these sites were different. The flotation behaviour of five new collectors (cationic collector decyloxy-propyl-amine (DPA), anionic collector α-bromododecanoic acid (α-BDDA), N-Dodecyliminodiacetic acid (DIDA), and mixed collector DPA-BDDA and DPA-DIDA) were investigated through micro flotation experiments and analysed based on the surface chemistry features of spodumene and feldspar. The results revealed that cationic collector DPA processed a high collecting capacity for both minerals. The highest recovery of spodumene and feldspar was 91.60% and 95.30% respectively. The anionic collector α-BDDA and DIDA showed poor flotation behaviour. The recovery of spodumene and feldspar when using α-BDDA as collector was less than 5% and when using DIDA as collector was less than 1%. For the mixed collector DPA-BDDA, the recovery of spodumene and feldspar was 82.27% and 32.61% respectively at pH 4.5. For mixed collector DPA-DIDA, the recovery of spodumene and feldspar was 35.69% and 9.08% respectively at pH 5.8. The results indicated that the cationic collector had high collecting capacity, but low selectivity. The collecting capacity of anionic collector for spodumene and feldspar was poor at the same concentration compared with cationic collectors. Mixed collector DPA-BDDA showed good flotation behaviour and selectivity on spodumene. The ―COO- in mixed collector might improve the selectivity. However, too much ―COO- would increase the electrostatic repulsion, which might cause low selectively and poor recovery. Keywords: Spodumene, feldspar, surface chemistry features, mixed collector, flotation

Jan 1, 2020

By C. Nangolo

Mineral commodity prices comprise one of the key criteria in the selection of mining stocks. We contend that of the three principal elements of mineral commodity prices, spot price, forward price and long-term price, one has a greater impact on the share valuation processes used by investors. This research paper examines the extent to which each of these elements influences the valuation process. The intention is to provide investors in mining stocks with a greater understanding of how fluctuations of commodity prices over time affect the prices of the mining stocks they hold, or intend to sell or buy. Three mineral commodities, gold, silver, and copper, were used as case studies, since market data on these commodities is readily available in the public domain. Nine market indices covering all three mineral commodities were selected. These are based on clearly defined criteria with the intention of eliminating ambiguity and to test for correlation with the three sets of mineral commodity prices. Nine mining companies, which were not the primary drivers of the relevant indices employed in the study, were used to validate the results obtained from the indices in order to avoid duplication of the same correlation during cross-checking. Each commodity price was adjusted for operating costs. For each market index, an average operating cost was calculated from the companies comprising its basket, while each company?s annual operating costs were used for the stocks of the individual companies examined. The data was collected for the period January 2004 to October 2010. This period was further split up into three sub-periods to account for the Global Financial Crisis (GFC) period that started in mid-2008. We conclude that mining stock prices are correlated with mineral commodity prices, but with spot and forward prices exhibiting stronger correlations than long-term price. This finding should be useful for evaluation purposes. Where cash flow methodologies such as discounted cash flow or earnings per share are used to value ordinary shares and commodity prices are required to estimate future cash flows, the findings suggest that spot prices should be used as opposed to long-term prices. The work reported in this paper is part of a current MSc research study at the University of the Witwatersrand.

Jan 1, 2011