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By C. Liu, F. Ye

"To extend the variety of lump ores that are used in the COREX shaft furnace and to optimize iron ore blending, the original evaluation method for iron ores that was proposed by Voestalpine AG has been improved. Physicochemical and metallurgical properties of iron ores, including Sishen lump ore and CVRD pellets, which are currently used in the COREX process, and three other lump ores, were assessed and compared. Ore matching principles were proposed and five optimized iron ore blending schemes designed and verified by laboratory experiments to prove the effectiveness of the improved evaluation method. The replacement of Sishen lump ore by the alternative L2 and L3 lump ores without varying the proportion of CVRD pellets could improve the degree of reduction and rate of metallization, and decrease the bonding index. Based on the results of laboratory test work and industrial- trials, an ore blending scheme of 60% CVRD, 20% L2, and 20% L3 is recommended for use in the COREX process. IntroductionIn recent years, problems such as environmental pollution and a shortage of coke and coal resources for blast-furnace ironmaking have become increasingly apparent. Based on sustainable developments in the iron- and steelmaking industries, the environmentally friendly COREX smelting-reduction process with low energy consumption was developed and introduced (Zhou and Du, 2013; Song, Lv, and Yin, 2015; Xu et al., 2016; Kurunov, 2010). The evaluation system for lump ore that was proposed by Voestalpine AG recommends that only Sishen lump ore from South Africa be used in the COREX process, because of the stringent physicochemical and metallurgical property requirements. This situation significantly hampers improvements to the technical and economic aspects of the COREX ironmaking process, especially in China (Eberle, Siuka, and Bohm, 2006). No theoretical or technical basis has been provided for the evaluation system, and the assessment approach for iron ores also presents problems that need to be discussed and resolved.The COREX process consists of two reactors: the prereduction shaft furnace and the melting gasifier as shown in Figure 1 (Wu et al., 2017). Pellets and lump ores which are charged to the prereduction shaft should have a good reducibility and metallization with a low degradation index (Li et al., 2016; Wu et al., 2011; Kumar et al., 2009; Kang, Gupta, and Sahajwalla, 2007). The properties and microstructure of the iron ore pellets which are required to achieve a high productivity and a lower fuel rate in the COREX process have been investigated (Umadevi et al., 2011). Some efforts have also been made to investigate the behaviour of lump ores in the COREX shaft furnace, including the disintegration characteristics and the reduction degradation (Umadevi et al., 2011; Zhou et al., 2015; Xu et al., 2013; Li, Feng, and Zou, 2013; Hou et al., 2014). However, few studies have focused on the optimization of ore blending for partial or total substitution of the expensive Sishen lump ore by other, cheaper lump ores to reduce the production cost. The technology for the utilization of blended lump ores in the COREX process is still in its early development stages (Zhou et al., 2017; You et al., 2017)."

May 1, 2019

Elongates are commonly used as stope support in South African gold and platinum mines. To evaluate the effect of the inherent strength, stiffness and yield variability associated with elongates, a statistical method is presented which addresses and quantifies the support performance at various levels of certainty. The analysis, which is based on a normal distribution, makes use of force-deformation curves determined from multiple laboratory compression tests on the same support type. The applicability of the method is illustrated making use of actual performance capabilities of various types of elongates. In order to ensure a high probability that support units installed underground exceed the standard support performance curve established by means of laboratory tests, the statistical mean of a suite of tests based on the same support type is downgraded. The ?correction factor? is a function of the mean and standard deviation of the test data, as well as the sample size of units deemed to control the local rock mass stability. It is shown that downgraded performance curves based on a high probability (90 to 95percent) of support units exceeding this performance level are suitable to ensure that the design of support systems will in variably meet the design criteria. In the highly discontinuous hangingwall rock mass typically associated with intermediate- and deep-level mining operations, the interaction between adjacent support units is comparatively limited (at the support spacings commonly used). Therefore, the appropriate sample size (n) of the support units controlling the local rock mass stability should be n= 1. In shallow mining conditions, sample sizes of up to n=5 may be warranted, depending on the spacing of joints and other discontinuities in the hangingwall.

Jan 1, 2001

By M. Frenzel, K. Bachmann, M. Rudolph, R. Tolosana-Delgado, E. Schach, M. Buchmann, L. Pereiraa, K. G. van den Boogaart, N. Kupka

Geometallurgy - the science of predicting the behaviour of ores along the value chain based on their geological and mineralogical characteristics - has barely moved beyond process minerology studies. These studies typically link process behaviour to the mineralogical and microstructural characteristics of pristine or processed ores in a qualitative or semi-quantitative manner. Eventually, a trial-and-error optimisation of the operation is achieved. However, to deliver on its promise, geometallurgy should progress beyond this current approach to a fully quantitative understanding of process behaviour, including the various uncertainties involved, namely predictive geometallurgy. One of the barriers currently hindering this development is the neglect of most ore characterisation data obtained in geometallurgical studies. This is mostly due to the large extent of this information exceeding the capacity of conventional software. To address this challenge, we developed a data mining platform consisting of an SQL database, an R front-end in-house package, and back-ends to interpret data from several analytical instruments. This platform enables the use of the statistical and data mining power of the R open-source environment for any geometallurgical study. Potential applications range from ore characterisation to process understanding and forecasting, and from geostatistical prediction to operational control and optimisation. The scripting abilities of R allow for the: 1) processing of many streams in loops, thus freeing the user from repeating tedious click-and-drop tasks; 2) computation of virtually any derivate or aggregate quantity from the data; 3) distribution of the work among several processor clusters; and 4) keeping of a log file for the calculations done. This contribution presents the building blocks of this platform, and illustrates with several examples its potential to enable predictive geometallurgy. Keywords: Data mining, entropy, kernel methods, LASSO regression, predictive geometallurgy

Jan 1, 2020

By G. P. Dyke

With the removal of the majority of the shallow mineral reserves there has been an increase in the mining depths in the South African mining industry. This has, in turn, changed the industry?s and stakeholders? perceptions of risk associated with mining-induced instability. In recent years the increased mining depth, particularly in open pits, has led to an increase in pit slope failures, which has highlighted the need for appropriate and effective pit slope management programmes. Such a programme comprises many facets, including mine hazard plans, regular slope inspections, cleaning of interim and final pit faces, blasting practices, histories of failures, pit depressurization, stormwater control and evacuation procedures. However, it is arguably in the field of slope monitoring that the most significant strides have been made in terms of new technologies and best practice in open pit mining geotechnics, with the introduction of technologies such as laser scanners and slope stability radar. This paper seeks to illustrate the operational benefits associated with the implementation of new technologies into open pit mining, using AngloGold Ashanti?s Geita Gold Mine in Tanzania as an example.

Jan 1, 2009

By L. Rademeyer, P. Mazzoni, C. Kubank, F. Brown

The Corridor Sands deposits of heavy mineral sands represent the largest known economic resource of titanium dioxide minerals. The West Block of Deposit 1 alone contains Measured and Indicated Mineral Resources of 1.7 billion tonnes containing 4.14 per cent ilmenite, estimated in accordance with the JORC standard, sufficient for at least the first 20 years of mining. Total mineral resources are estimated to be approximately 17 billion tonnes at 5 per cent Total Heavy Minerals (THM). Test work was undertaken on the West Block of Deposit 1 over a period of two years in order to develop the process flow sheet to bankable standards. Geological, mineralogical and metallurgical test work was integrated from a pre-feasibility stage to the full bankable stage. The process flowsheet was developed with the central objective of the production of saleable products, of consistent quality and acceptable to the respective end-markets. The aim of this paper is to describe the way in which the various challenges for the project have been addressed by using integrated geological and mineralogical information, which has resulted in the development of a complete flow sheet. The process confirmed that material within customer specifications could be produced, once various metallurgical parameters were understood. This flow sheet development progressed from laboratory test work through to full field trials at pilot plant scale on large consignments of mineralized material. The flow sheet was developed to such a standard as to be used with confidence for both engineering design and cost estimates, and to determine the recovery factors to be used in financial evaluations. Keywords: Corridor sands, Flow sheet, Pilot plant Titanium dioxide

Jan 1, 2003

We present a novel hybrid algorithm for quantifying the ore grade variability that has central importance in ore reserve estimation. The proposed algorithm has three stages: (1) fuzzy clustering, (2) similarity measure, and (3) grade estimation. The method first considers data clustering, and then uses the clustering information for quantifying the ore grades by means of a cumulative point semimadogram function. The method provides a measure of similarity and gives an indication of the regional heterogeneity. In addition, grade estimations can be obtained at different levels of similarity using a weighting function, which is the standard regional dependence function (SRDF). Keywords: Grade, fuzzy clustering, similarity measure, point madogram, weighting function.

Jan 1, 2008

By R. J. Forzatti

The production of sulphuric acid from sulphur generates heat. The majority of this heat is recovered as steam and is often used to generate electricity. Heat not recovered as steam is rejected to cooling water systems. The design of the turbine, condenser, and cooling water systems impacts the overall water, energy, and environmental footprint of the plant. This review considers a conceptual 2000 t/d sulphuric acid plant with several alternative cooling water systems. The review utilizes Hatch?s 4 Quadrant sustainable design tool to compare the alternatives on both an economic and a weighted sustainability scale.

Jan 1, 2014

By M. Hopf, E. Rossouw

Keywords: Pyrometallurgy, furnace, copper coolers, freeze lining, monitoring, Saveway The use of water-cooled copper components as sidewall elements of submerged arc furnaces and other pyrometallurgical applications has become increasingly common. The high cooling efficiency of copper has made it possible to increase the service life of furnace refractories when compared to conventional refractory linings. However even the self-healing effect of ?freezing? worn areas of the lining does not necessarily protect the copper coolers against wear or corrosion completely. In order to avoid furnace explosions, various methods have been used to monitor the wear of coolers. Unfortunately, these have not been able to consistently identify localized wear. Thos Begbie (South African) and SAVEWAY (German) jointly developed technology to embed a line sensor into the copper cooler during the casting process. This system allows an exhaustive monitoring of the copper cooler. A SAVELINE sensor is placed inside the copper-cooling panel between the water-cooling passage and the hot face of the panel. The sensor follows the meandering shape of the cooling water channels. In the first instance, the sensor provides analogue information as the thickness of the copper reduces. Secondly, this wear signal will be confirmed by a signal of interruption if the sensor is washed away. Because of the structure of the sensor, a self-diagnosis is possible and indications can be confirmed (double proofed). Subsequent to the manufacture of some test pieces, coolers for a large submerged arc furnace were manufactured. The sensorized coolers have been installed at the intermittent surface (slag line) where the largest amount of corrosion has been encountered. The system has been operating since December 2005 in what is considered one of the largest submerged arc furnaces in South Africa.

Jan 1, 2006

By G. S. Bartlett

The theme of this Colloquium, survival strategies, not only conveys a sense of urgency but also takes cognizance of the fact that, as in the political arena, tough decisions have to be made and acted upon in the years to come. It is therefore appropriate that the SAIMM, as spokesman for the metallurgical industry, should be dealing with these issues at this time, and I wish to commend the organizers of this Colloquium for focusing on a mater as important as the future of this great industry. In view of this, I regard it as an honour and privilege to officiate on this occasion, where the best of South Africa's brain power in the metallurgical field will be harnessed with a view to moulding strategies for survival.

Jan 1, 1993

By T. T. Chiweshe, L. S. Mokhahlane, M. Welman-Purchase

This study examined an alternative technique of extracting tungsten from wolframite ore using a fusion method with ammonium phosphate salt. Current techniques use alkali salts to decompose tungsten ores and use various purification methods to produce ammonium paratungstate, which is a key intermediate precursor in the extraction of tungsten. In this study, a two-step extraction process, which involves thermal decomposition of the ore using fusion and a separation stage, is examined. The novelty of this technique is the ability to completely decompose wolframite ore and form an unstable tungsten oxide phosphate (WO2(PO3)2) compound. The instability of WO2(PO3)2 in deionized water enables selective isolation of tungsten as insoluble precipitates of WO3 and WO2. The decomposition reaction of WO2(PO3)2 is influenced by the presence of oxygen and determined to be first order under ambient conditions. Scanning electron micrographs and X-ray diffraction analysis showed above 80% of the tungsten precipitated compared with the amount that remained in the filtrate solution.

Jul 10, 2024

By C. J. Van Niekerk

The study comprised of the investigation into the sensitization characteristics of AISI 409 titanium stabilized ferritic stainless steel during low heat input welding. AISI 409 is a fully ferritic stainless steel used in catalytic converters and tubing for automotive exhaust systems due to the supposition that sensitization does not occur during low heat input welding. Two plates of 2 and 4 mm were tested for sensitization during low heat input welding. The study confirmed that chromium carbide (M23C6) precipitation occurs on the grain boundaries in the heat-affected zone with consequent depletion of Cr adjacent to the grain boundaries during welding. In the 2 mm plate sensitization occurred in the heat input range of 0.1 kJ/mm to above 0.25 kJ/mm and in the 4 mm plate sensitization occurred in the heat input range of 0.2 to 0.9 kJ/mm. Ti stabilization is ineffective at the heat inputs used in this investigation due to the rapid cooling rate through the temperature region where TiC precipitates. The presence of N was found to be detrimental since it consumes Ti on cooling, forming TiN, effectively lowering the amount of Ti available for TiC formation during rapid cooling after welding. Annealing for 5 minutes at 725°C does not improve the sensitization characteristics of the welded plate. There is a linear increase in grain size as heat input increases. The resistance to pitting corrosion decreases in the sensitized, welded plate in theheat-affected zone adjacent to the fusion line of welding. Keywords AISI 409 ferritic stainless steel, sensitization, grain growth, resistance to pitting corrosion, low heat input welding.

Jan 1, 2011

By S. N. Opperman

Testwork at Goedehoop Colliery showed that fine coal, essentially?150 microns can be successfully beneficiated using froth flotation. Both conventional and column flotation were tested. It was found that the traditional stirred tank type of flotation machines used in conventional flotation produced the best recovery of fine coal. After extensive testwork it was decided to develop a flotation machine on Goedehoop Colliery that would combine stirred tank and quiescent column technology. It was thought that this design would give the best combination of recovery and selectivity. The Multicell was developed and is producing results acceptable for Witbank coal flotation. Keywords: Multicell, Witbank coal flotation, froth, stirred tank, quiescent column.

Jan 1, 2002

Dr H. J. van Eck (Honorary Life Member): "Mr President, I regard it as a signal honour that I was invited to address the South African Institute of Mining and Metallurgy on its 75th Anniversary. I also wish to add my congratulations and good wishes to the many you have already received on this memorable occasion. Seventy-five years is indeed a good age and the achievements of your Institute certainly justify this special celebration. South Africa owes her present prosperity largely to the technological ability and determination of her own people. Members of the Institute contributed in large measure to this great development of our country and through the years have upheld their high reputation for scientific integrity, dynamic enterprise and dedicated service. It was their knowledge which provided the key to unlocking the mineral wealth which lay dormant for countless ages. The history of world mining dates back many centuries. We know of the mercury mines of Spain, the tin mines of Cornwall and the zinc mines of Poland, but it was not until colonization of the western hemisphere started in about 1500 that mining of any consequence began in North America. It is true that the peoples of South America and Mexico had accumulated wealth out of gold and silver, but industrialized mining was not a feature of these agrarian cultures. The mining wealth that eventually developed in North America was based on advances in the technology of processing minerals and served as an incentive to people in other new countries. Big mines were opened elsewhere in the world. From Canada, Mexico, Venezuela, Brazil, Peru, Chile, Bolivia, Rhodesia, Australia, Burma and India, to name but a few, there has been a steadily increasing production of an expanding range of minerals and metals. By the middle of the 20th century the trend was to increase the production and use of such comparatively uncommon metals as cobalt, nickel, titanium, and others, and a great mining rush started to search for, and develop, the deposits of uranium, and related radio-active minerals. It is worth pausing a few minutes to reflect that most of early mining was based on the recovery of virgin metals like gold and silver or easily treated high grade ores of copper, tin and zinc. Today, much of this type of mining would be regarded as picking the eyes out of the mine. With the development of improved ore separating, ore concentration and recovery processes, we developed into bulk mining and bulk treatment and in South Africa we have some very big mines, also outside the gold mining industry at Phalaborwa, for instance. Mining techniques are applied which compare with the best in the world. These large mines could only develop because of the perfection of new concentrating techniques and, of course, because of the development of markets. We have mentioned nickel and cobalt. These names were given to those mischievous mining sprites called nickels and kobolds to whom the suspicious miners ascribed their inability to smelt copper from copper nickel or arsenious copper ores. In South Africa, the presence of minerals was known to the modern Western world as far back as 1497 when Vasco da Gama found the native 'strandlopers' at the St. Helena Bay wearing copper rings. In 1669, after the British East India Company had formed their settlement, they employed miners and assayers in prospecting for minerals and in 1685 found traces of copper in the copper mountain of Namaqualand where some 170 years later a rich deposit of copper was to be opened up. This deposit also had a chequered

By F. T. Cawood

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

Jan 1, 2003

By H. Vuthaluru, O. Kavianipour, C. -Z. Li, N. Suresh, D. Sahu

The paper describes a CFD model developed for 76mm Dense Medium Cyclone (DMC) using Ansys Fluent Software to gain insights into the separation of particles according to their size and density. The simulation used in this paper includes the Reynolds stress model to predict the turbulence inside the cyclone body. An Eulerian-Eulerian multiphase CFD model was applied to model a number of physical aspects such as the separation of coal particles and the segregation of magnetite media solids. The experimental results generated in a laboratory scale DMC were used for the validation purpose and the predicted results of CFD have been validated for the flow splits of water, magnetite and coal. The simulation results obtained from the Eulerian-Eulerian multiphase model revealed that the prediction agreed with experimental results, and matched reasonably well in terms of the mass flow rates of water, magnetite and coal. Furthermore, the partition curve of the DMC when mapped for the separation of - 3.0+0.50 mm size also showed to be in agreement with the experimentally obtained curves. The gravity of cut (SG50), also predicted by the Eulerian-Eulerain multiphase CFD model, was found to be in the vicinity of observed experimental value of SG50. Keywords: Dense medium cyclone, Eulerian-Eulerain multi-phase modelling, computational fluid dynamics, cut gravity (SG50)

Jan 1, 2020

High pressure grinding roll (HPGR) technology is used in an increasingly diverse range of applications, predominantly iron ore, gold and diamonds. KHD Humboldt Wedag HPGRs are applied world-wide, and consistently prove to be well designed and reliable operating units, with their performance meeting the pre-set standards. This publication summarizes some of the features and experiences for recent applications in treatment of copper ore, coarse iron ore, and gold ore. Summary data of roll surface wear life and operating data are given, together with operational observations. In addition, effects of feed segregation and truncated feed are discussed, as well as the implications of a product recycle flow sheet.

Jan 1, 2012

High pressure grinding roll (HPGR) technology is used in an increasingly diverse range of applications, predominantly iron ore , gold and diamonds. KHD Humboldt Wedag HPGRs are applied world-wide, and consistently prove to be well designed and reliable operating units, with their performance meeting the pre-set standards. This publication summarizes some of the features and experiences for recent applications in treatment of copper ore, coarse iron ore, and gold ore. Summary data of roll surface wear life and operating data are given, together with operational observations. In addition, effects of feed segregation and truncated feed are discussed, as well as the implications of a product recycle flow sheet.

Jan 1, 2012

By J. Petersen, T. Moyo, D. Maharaj

This study investigates the effect of ammonium thiosulfate on the leaching of gold from the contacts of unpopulated cut electronic printed circuit boards (PCBs). Studies in the literature show ammonium thiosulfate to be a viable option in comparison to the commonly used but hazardous cyanide leaching route. However, the simultaneous dissolution of Cu interferes with the Au leaching reaction, often limiting the extraction to moderate levels. To optimize the system, an ammoniumthiosulfate system containing 0.5M ammonia, 0.5M ammonium thiosulfate, and Cu(II) sulfate at varying concentrations was studied as an alternative hydrometallurgical option for the recovery of gold from PCB. Tests were done with unpopulated standardized model PCBs (cut to 15 x 30mm pieces). Gold extraction of 47.3% was achieved after a 24-hour leaching experiment with a 0.02M copper background concentration. Further experiments focused using different initial background Cu concentrations (0M – 0.1M) to determine its effect on both gold and copper extractions. An initial Cu concentration of 0.045M resulted in the highest gold extraction, with 93.7% extraction after 6 hours of leaching. Further analysis of the data shows that the kinetic rate of gold leaching is correlated in a first-order dependence with the actual copper concentration in the solution, which increases with the concomitant dissolution of copper and gold from the PCBs. A lower threshold of 0.017M and an upper threshold of 0.15M copper in solution were determined, in between which gold extraction shows this first-order rate increase. The upper threshold is potentially linked to the onset of copper precipitation, which blinds the metal surfaces, slowing further leaching. The findings of this study suggest that in an industrial recovery operation of gold from waste PCB using the thiosulfate method, copper concentrations need to be carefully monitored, and the process should preferably operate with uncut or coarsely cut untreated boards to minimize exposure to copper circuits.

Dec 11, 2024

By K. -H. Daum

Over many decades, numerous feasibility studies have demonstrated, that the production of sulphuric acid remains the most viable option of sulphur recovery from smelter off gas and abatement of SO2 emissions to the atmosphere. This is particularly more pronounced as smaller but more concentrated off-gas flows are to be treated from smelters, and enhanced sulphuric acid processes become available. Off-gas handling systems represent a significant capital and operating cost burden to the metallurgical operation. Modern pyrometallurgical smelter processes for sulphide ores based on the use of oxygen-enriched air, produce relatively small off-gas flows with high SO2 concentrations in the smelter gas of 30?60%-vol. of SO2. This is a prerequisite for substantial cost reductions in the smelter off-gas handling and treatment system. As an alternative to sulphuric acid production, numerous scrubbing concepts with alkali or dual-alkali combinations as well as organic absorbents have been proposed. Also the reduction of the SO2 to elemental sulphur has frequently been studied. Very few of those alternative processes have been built in industrial scale, but all were generally characterized by none-sustainable operation due to cost reasons, problems with issues related to chemicals used and by-products or poor availability. Thus the traditional concept of converting the SO2 to sulphuric acid is most common, although regarded as uneconomic, but is at least a proven, environmentally sustainable and reliable way of sulphur gas processing. With the high acid price levels these days, operating companies are even able to generate significant revenue with their otherwise ?fatal? acid. Even though smelter gas is available at high SO2 concentrations, in a conventional acid plant one would add large amounts of air to dilute the gas down to a suitable concentration of 12?13 (14) %-vol. SO2. Dealing with higher SO2 concentrations in smelter acid plants is not feasible, as the gas exit temperature of the catalytic oxidation step would exceed the allowable limit for the catalyst. Hence those conventional acid plants are characterized by the use of large equipment, i.e. high capital cost, high energy consumption and limited flexibility. The newly developed LUREC® process can handle off-gas with significantly higher gas concentrations, even in excess of 25%-vol. SO2. It is entirely based on well-proven equipment and unit operations. The first industrial application, operating with 16?18%-vol. SO2 will be presented in this paper, along with the fundamentals of the process. It will be demonstrated that the process requires inherently lower capital cost, fewer operating costs, and offers better energy recovery and lower emissions as compared to conventional design. While most existing smelter acid plants would have some built-in spare capacity, any significant increase of smelter capacity, say of 30%, can basically not be accommodated without installing an additional parallel new acid plant unit. An add-on LUREC® module can remove any such restriction, while simultaneously debottlenecking the existing acid plant. The paper also discusses the present status of the add-on technology for smelter acid plant expansions with respect to technical boundary conditions of different process alternatives as well as economic and environmental aspects. Application of the LUREC® process to modern smelter acid plants operating with high SO2 gas concentration, will lead to a substantial reduction of the specific size of the gas processing equipment and equivalent savings in capital and operating cost. The LUREC® process is patented worldwide by OUTOTEC.

Jan 1, 2009

By C. Birch

"The purpose of this study was to establish the impact of discount rates on cut-off grades for narrow tabular gold deposits as characterized by the goldfields of the Witwatersrand Basin in South Africa. There are various methods available for determining the cut-off grade, from simple breakeven calculations to sophisticated software packages that consider a variety of inputs to optimize the cut-off grade. For this study a simple financial model was created in Microsoft Excel® that links the ore flow, block listing, and the cash flow. This allows the cut-off grade to be optimized considering how the cost of capital and chosen discount rate affect the cash flow.The discounted cash flow (DCF) and resultant net present value (NPV) are a widely used valuation method for production properties according to the South African Code for the Reporting of Mineral Asset Valuation (SAMVAL Code). The financial model in this study utilizes the Solver function, as well as simple Microsoft Excel spreadsheet formulae to optimize the NPV. Solver was chosen as it is a standard feature in Excel and thus no additional software costs are incurred beyond the basic Microsoft Office suite. For the purpose of this study, just narrow tabular gold deposits of the Witwatersrand Basin were considered. An example of a typical ore block listing, as well as the costing figures, was obtained from an operating gold mine. The results obtained from the study financial model were compared to the current cut-off grades obtained from the mine using their proprietary optimizer program, and were found to be comparable. The methodology utilized for this study thus appears valid.The cut-off grade was optimized considering the cash flow, which includes the variable mineral resource royalty tax, the variable gold income tax, as well as the discount rate. By comparing the resultant NPVs using discount rates of zero, 9%, and 12%, the impact of the discount rate on cut-off grades, resultant life of mine, and average mining grades (AMG) could be compared for the example ore block listing. The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) does not require operations to state if a discount rate was considered in determining mineable reserves. Mining companies approach the question of applying discount rates in determining their cut-off grades, and thus mine planning strategy, in different ways. Due to the negative impact that optimizing purely on NPV has on the life of mine, some choose to optimize only on profit. Other companies have reverted to utilizing pay limits as their primary grade planning strategy. The calculated cut-off grade is then considered to be another planning indicator rather than a hard determination of mineable reserves."

Jan 1, 2016