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By R. Banda

This paper describes the decision to implement and then the implementation itself, through trials, of electronic ?Smartdets? over previously used shock tubes. It concludes that Mufulira Mine has become the first mine in Zambia to convert 100% of its stoping to ?Smartdets?, because the Mine?s management was prepared to look beyond the unit cost of product and were ready to look at the broader picture of cost effectiveness and increased productivity.

Jan 1, 2005

By R. Venter

Uranium in the tetravalent state has very low solubility in acid and alkaline solutions and needs to be oxidized to the hexavalent state to become soluble. In acid leaching of uranium the uranium is oxidized by ferric iron, which in turn is reduced to ferrous iron. The reduced iron needs to be oxidized to the ferric form to allow the uranium dissolution reaction to proceed. This paper considers the known and proven oxidants used in acid leaching of uranium. These include manganese dioxide, sodium chlorate, hydrogen peroxide, ferric iron, oxygen and sulphur dioxide/air (oxygen). The reaction chemistry of each oxidant as well as the practical applications are considered and discussed. All the oxidants discussed work adequately in acid leaching of uranium and it is possible to engineer solutions for the use of the oxidants in acid leaching on plant scale. The availability and supply of the oxidant as well as the cost and environmental impact of the oxidant plays a major role in the selection of a suitable oxidant. The location of the plant will also have an impact on these issues.

Jan 1, 2009

By R. Poisel, C. Scavia, Preh A., W. Roth, M. Pirulli

ABSTRACT: Two methodologies for the three-dimensional simulation of the run out of rock avalanches are presented: one based on a granular approach and the other based on a continuum equivalent approach. An evaluation of the possible run out area of the Oselitzenbach landslide (Carnic Alps, Austria) has been carried out applying the two methodologies. The combined use of these two approaches makes it possible a comprehensive assessment of the run out area. RESUME: Deux méthodologies pour la simulation tridimensionnelle de la propagation des avalanches rocheuses sont présentées: la première est basée sur un modèle de type granulaire et la deuxième sur un modèle du continu équivalent. Une évaluation de la propagation éventuelle de l’avalanche de Oselitzenbach (Alpes Carniche, Autriche) a été réalisée en utilisant les deux méthodologies. Les résultats obtenus montrent que la combinaison des deux approches rend possible une analyse plus complète de la phase de propagation. KURZFASSUNG: Für die dreidimensionale Modellierung eines Felsmassensturzes (sturzstrom) werden zwei Methoden, eine granulare und eine kontinuumsmechanische Methode, vorgestellt. Beide Methoden wurden zur Abschätzung der Ausbreitung (runout) der Massenbewegung Oselitzenbach (Karnische Alpen, Österreich) herangezogen. Die kombinierte Anwendung beider Methoden ermöglichte eine umfassende Beurteilung des möglichen Ausbreitungsbereichs.

Jan 1, 2003

By A. Yamik

This research study includes studies carried out on the recovery of unburned carbon in the ashes of Tuncbilek Thermal Power Plant. Bottom ashes have been identified by X-ray diffraction and X-ray fluorescence. These samples are potentially of class F type and have significant amounts of unburned coal. According to the ash amount that units in the thermal power plant produce, and the analyses of the samples mixed, which used certain amounts in flotation tests, it was found that the bottom ash includes 91.47% ash in dry form and 8.53% combustible matter, and the lower calorific value is 491 kcal/kg. Optimum flotation conditions to get the unburned carbon were subsequently determined by examination of the optimum flotation grain size, pulp density, collector type and amount, depressant type and amount, frother type and amount, agitation speed, and froth-taking time. While the lower calorific value of the thermal power plant bottom ashes of the 3rd , 4th and 5th units and the mixed bottom ash sample was, respectively, 959, 469, 279 and 491 kcal/kg in dry form, it increased to 2490, 1312, 786 and 1348 kcal/kg in the product obtained as a result of flotation in optimum conditions. Key words: ash, conventional flotation, unburned carbon

Jan 1, 2008

By P. Mokwena

Paper written on project work carried out in partial fulfilment of BSc (Hons) in Chemical Engineering Diamond synthesis has attracted a great deal of interest because of its exceptional properties and various applications. In this study, the chemical catalytic vapour deposition (CCVD) method was used to synthesize diamond films using acetylene as carbon source and hydrogen as carrier gas at a temperature of 1000°C, and their thermodynamic stability was studied. Photographic analysis revealed that these products are diamond films, Ramman spectroscopy confirmed that they are graphitic while confocal laser scanning microscopic image analyses proved that these diamonds films have structural defects due to iron impurity from the catalyst precursor. The quantity of diamonds films produced is also proportional to the acetylene to hydrogen ratio but these films are larger in size at lower acetylene to hydrogen ratio. Thermogravimetric analyses showed that transformation of these materials begins at 25°C but could not be used to determine if a temperature range below 25°C exists. The stability of these CCVD-synthesized diamonds also increases below 25°C when stored at different temperatures.

Jan 1, 2007

By J. A. L. Napier

It has been established that significant time-dependent stope convergence may occur over time periods of hours and days in certain hard-rock gold and platinum mines. The source of this time-dependent behaviour appears to be associated with both pre-existing discontinuities and with mining-induced fractures that form near the stope face. These induced fractures may be associated with blasting processes and may also be formed in response to high stress concentrations in the unmined regions immediately ahead of the stope face. In shallower platinum mining operations, time-dependent behaviour is, however, observed to be much less marked unless some form of specific mining-induced fracturing occurs. One particular case of considerable interest is the time-dependent behaviour that is found to be associated with the formation and deployment of crush pillars. The purpose of the paper is to present a simple limit-equilibrium computational model of this behaviour that is sensitive to both the formation sequence and the size of planned crush pillars in a mine layout. This model provides a useful means to optimize the sizing of crush pillars, and at the same time may be used to identify potentially hazardous circumstances in which pillars may not crush in a stable manner.

Jan 1, 2012

By C. M. G. Wortley, N. Randolph, I. Ralston, R. D. Beck

The ?AMIRA Metal Accounting Project? had its origin in a workshop held in Cape Town on 1 August 2001, with the title ?Challenges in Metal Accounting and Information Management?, which was organised by the Western Cape Branch of the South African Institute of Mining and Metallurgy. This workshop identified the lack of an accepted set of standard procedures for metallurgical accounting as an industry-wide problem. Discussions which followed this workshop led to the initiation of the AMIRA Project P754, ?Improving Metal Accounting?, in 2003. The primary objective of the project was to provide tools for improving the auditability and transparency of metal accounting from mine to product and to facilitate good corporate governance. The planned deliverables of the project were a series of research projects into aspects of metal balancing in different types of metallurgical operations, a Code of Practice on Metal Accounting, and a textbook on the subject which could serve as a guide for metal accounting practitioners and students studying the topic. An additional planned deliverable was the provision of a new variety of professional experts in metal accounting, through successful completion of the research projects. Researchers were engaged at the Universities of Cape Town, Queensland and Stellenbosch and the project was sponsored by five mining companies, including three of the largest global mining groups. Research Program Eight research projects were undertaken as part of the P754 project and these are described briefly here to indicate the scope of the project. University of Cape Town ?Development of a methodology for measurement network design for metallurgical accounting at Namakwa Sands?. This project was based on the Namakwa Sands Separation Plant, with a data rich environment, and involved the investigation of measurement network design through the use of heuristics and the analysis of complex processing circuits. An industry-wide survey of current practice to facilitate the development of an expert system for plant accounting measurements was carried out. ?Metallurgical accounting design at the Waterval UG-2 Concentrator?. The objective of this project is to develop a model for predicting metal recoveries from the different components of a blended ore feed to a plant. ?Optimal measurement network design for metallurgical accounting at Zincor?. This project provided a hydrometallurgical test case for the design and evaluation of a semi-automated optimal measurement network. University of Queensland ?Quantifying the relationship between mine and mill?. This project involved a case study at North Parkes Mine, in which copper and gold ore is tracked from the pit source to the product, as well as a stockpile modelling study. University of Stellenbosch

Jan 1, 2007

By D. D. Marsden, L. E. Kun

Although a regulation is in force that all water used underground shall be free of bacterial contamination, in practice it is often very difficult to accomplish this. The standard method of disinfection m South African mines IS treatment with calcium hypochlorite, although liquid sodium hypochlorite is used at a few sites. Primarily because the process depends on human control for the addition of the hypochlorite and the regulation of its now, it is frequently found difficult to disinfect mine water adequately and continuously. In many marine environments, chlorine generated by the electrolysis of seawater in its passage through an electric cell is used for disinfection. The generation procedure is continuous and needs no human control except for occasional checking of the equipment. This paper describes the successful implementation of the process, suitably .modified, .at four underground sites. After severe scaling problems had been overcome, a procedure resulted that chlorinates considerably more effectively than the previous system (dosing with calcium hypochlorite), and that has a lower amortized operating cost.

Jan 1, 1981

By R. J. Pine, J. M. Rance, J. S. Coggan

ABSTRACT: The safe design of excavations created in a fractured rock mass is of paramount importance in rock engineering. Depending on the nature of the stress regime acting on an excavation, and the associated deformational behaviour of the rock mass surrounding the excavation, a number of potential failure mechanisms exist. These involve a combination of shear failure on existing joints, extension of critically oriented joints and propagation of new fractures through previously intact rock. Conventional numerical codes usually adopt either a continuum or discontinuum approach; this often results in significant over simplification and kinematic limitations particularly when modelling complex rock mass behaviour in the close vicinity of excavations. This paper describes the results from several case examples using a combined finite element-discrete element code, ELFEN that incorporates a crack propagation mode. Through the use of selected rock engineering examples, the authors demonstrate the potential of the code in the realistic simulation of complex rock failure both in underground and surface excavation applications. RÉSUMÉ: La conception sûre des excavations créées dans une masse de roche fracturée est d'importance primordiale dans la géotechnique. Selon la nature du régime d'effort autour d’une excavation, et le déformation associé de la masse de roche autour de l'excavation, il exsite un certain nombre de mécanismes potentiels d'échec. Ceux-ci comportent une combinaison d'échec de cisaillement sur les joints existants, la prolongation des joints d’orientation critique et la propagation de nouvelles ruptures dans la roche précédemment intacte. Les codes numériques conventionnels adoptent habituellement l’approche, soit d’un continuum, soit de discontinuum; ceci a souvent comme conséquence une sursimplification significative et les limitations cinématiques en particulier en modelant le comportement complexe de la masse de roche très proche des excavations. Cet article décrit les résultats de plusieurs exemples de cas en utilisant un code qui s’agit d’une combination d’élément discret et d'élément fini, ELFEN qui incorpore un mode de propagation de fissure. Par l'utilisation des exemples choisis géotechniques, les auteurs démontrent le potentiel du code dans la simulation réaliste de l'échec complexe de roche pour les applications aux excavations soit au fond soit à l’extérieure. ZUSAMMENFASSUNG: Das sichere Design der Aushöhlungen, die in einer zerbrochenen Felsenmasse verursacht werden, ist vom paramount Wert in der Felsentechnik. Abhängig von der Natur des Druckregimes, das auf einer Aushöhlung und dem dazugehörigen deformationalen Verhalten der Felsenmasse umgibt die Aushöhlung fungiert, bestehen eine Anzahl von möglichen Ausfalleinheiten. Diese beziehen eine Kombination des Scherausfalls auf vorhandenen Verbindungen, Verlängerung der kritisch orientierten Verbindungen und Ausbreitung der neuen Brüche durch vorher intakten Felsen. Herkömmliche numerische Codes nehmen normalerweise entweder ein kontinuum oder discontinuum Annäherung an; dieses ergibt häufig bedeutende Übervereinfachung und kinematische Beschränkungen, besonders wenn es kompliziertes Felsenmasseverhalten in der Nähe der Aushöhlungen modelliert. Dieses Papier beschreibt die Resultate von einigen Fallbeispielen mit einem kombinierten begrenzten Element - getrennten Elementcode, ELFEN, das einen Sprungausbreitungmodus enthält. Durch den Gebrauch von vorgewählten Felsentechnikbeispielen, demonstrieren die Autoren das Potential des Codes in der realistischen Simulation des komplizierten Felsenausfalls bei Anwendungen für beide Tagebaue und Untergrundsaushöhlungen.

Jan 1, 2003

By R L. Bowers, D S. Smit

In light of soaring commodity prices, Nkomati has investigated the potential of processing additional low grade nickel ores to add to their reserves. The Chromititic Peridotite Mineralised Zone (PCMZ) was identified as one ore type with the potential of producing a high grade nickel concentrate. In addition to the nickel, copper, cobalt and PGM?s, the ore also contains a significant amount of chromite which adds substantial value to the project. Pyrrhotite, pentlandite, chalcopyrite and chromite are the dominant minerals within the ore, which on average grades around 0.23% Ni and 12% Cr2O3. The PCMZ ore contains excessive amounts of fibrous silicates which makes it a challenging float, with gangue control as the key element to success. Extensive laboratory testwork, which eventually led to a pilot plant campaign, was undertaken with the aim of developing a process route for treating the PCMZ ore. Several flotation circuit configurations were tested and results from the optimal circuit indicated that a nickel concentrate grading at 8.5% is achievable at a recovery of 78%, with substantial recoveries for the copper, cobalt and PGM co-products. The chromite concentrate, grading at 45%, was extracted from the flotation rougher tailings via a spiral plant. These promising results were incorporated into the plant design and are currently being evaluated in a bankable feasibility study, which will see the current 100ktpm MMZ concentrator being upgraded to a 250ktpm PCMZ concentrator as part of Nkomati?s Phase II expansion.

Jan 1, 2007

The roasting of sulphide ores and concentrates is often the first step in the production of metals or chemicals. In many processes, the production of sulphuric acid is viewed as a by-product, while in some plants production is an important economic factor. Regardless of the purpose, a pyrite roasting plant consists of mainly three plant sections: roasting, gas cleaning and sulphuric acid. With the addition of air, the pyrite concentrates are transformed into solid oxides and gaseous sulphur dioxide at temperatures of 600 - 1000° C. After cleaning and cooling, the sulphur dioxide in the roasting gas is further processed to sulphuric acid. Two types of reactors are used depending on the application: stationary or circulating fluid bed . For over 60 years, Outotec has progressively been developing the principle of fluidised bed technology in several different reactor types for a multitude of process applications. The versatility of the fluidised bed reactor system has manifested itself in the treatment of minerals, including solid fuels, and for metallurgical processes both in the ferrous and non-ferrous fields. Process applications have included roasting, calcining, combustion and charring of coals, as well as off-gas treatment. This paper provides a summary of the pyrite roasting technology currently used along with a simple cost comparison of pyrite roasting and sulphur burning processes.

Jan 1, 2009

By P. Venter, N. Naude

"Coal mining is a thriving industry and 53% of the coal mined in South Africa is used for electricity generation. Mechanization has made coal mining more efficient, but fines generation has subsequently increased. Up to 6% of the run of mine material can report to the -200 µm fraction. Common problems associated with fines handling include dust formation, storage problems, and high moisture levels. A method to turn this material into a saleable product instead of stockpiling it can add value to a company.Briquetting is a pressure agglomeration method where loose material is compacted into a dense mass (FEECO International, 2014). The briquettes must be able to withstand rigorous handling and transport operations without disintegrating. This study aims to investigate the optimum binder and moisture conditions required to produce a mechanically strong briquette using two different binders - a PVA powder (binder A) and a starch powder (binder B).It was found that for binder A the optimum moisture level was 12% to 14%. At this moisture level the greatest compression strength gains were observed, and low amounts of fines produced in impact and abrasion tests. The minimum amount of binder added while still obtaining a strong briquette was 0.5% binder A. For binder B the optimum moisture level was also 12% and the minimum amount of Binder B to be added was found to be 1%. Briquettes that were dried outside reached their peak strength after about four days, whereas the briquettes that dried inside took about 20 days to reach their strength plateau. Hardly any degradation took place on the surface of the binder A film after exposure of 300 hours of artificial weathering. Thermogravimetric analysis confirmed that neither binder A nor binder B will add to the ash content of the coal fines, as both binders totally decompose above 530°C.Binder B yielded stronger briquettes after 15 days and also generated less fines. It is therefore superior to binder A and would be recommended for further use.Paper written on final year project work carried out in partial fulfilment of B.Eng degree in Coal Beneficiation"

Jan 1, 2015

By P. S. Paul

Mine accidents/injuries are complex and generally characterized by several factors, from technical to social characteristics. In this paper, a sociotechnical model for work injury in mines was developed and tested through structural equation modelling with application to case study mines in India. In total 14 variables were considered in this study. Most of the variables are not directly quantifiable. Instruments were developed to quantify them through a questionnaire survey. Underground mineworkers were randomly selected for the survey. Responses of 300 participants were used for the analysis. The analysis was conducted in three parts. Firstly, high-low plots were constructed to explore the variations in responses to the questionnaires by the accident involved (AG) and non-involved (NAG) workers. Secondly, a t-test was conducted to see whether the responses were significantly different for the two groups or not. The chi-square results showed significant differences of responses among the two groups. Finally, how these difference scan cause accidents/injuries in mines was hypothesized and evaluated using structural equation modelling. The measurement model of the Linear Structural Relations (LISREL) program was used to identify the latent constructs of the sociotechnical model. The structural model of LISREL was used to estimate the interrelationships among the constructs. The case study results showed that there is a sequential interaction among the sociotechnical factors leading to accidents/injuries in mines. Work hazards induce more job stress in the workers while social support mitigates the same. Job stress and safety environment predict the workers? job involvement. A worker who is more job-involved exhibits better safety performance, which in turn reduces work injury. The safety environment is shown to have a direct mitigating effect on work-related injury. The findings of this study clearly revealed that job stress and safety environment are the two key factors influencing work-related injuries in mines that need to be addressed properly through effective safety programmes.

Jan 1, 2005

By J. G. Wiese

Reagents are added to the flotation process of Merensky Reef ores to achieve specific functions that enable the separation of valuable minerals from gangue minerals on the basis of the difference in their surface properties. However, due to the complexity of the process, the various interactions that occur as well as the incomplete liberation of the ore and range of minerals present, it is difficult to quantify the behaviour of each of the reagents. More specifically, changes made to achieve a particular outcome may have secondary effects that can override the desired effect. If all the effects and interactions can be accounted for, it is possible to manipulate reagent suites and obtain better overall metallurgical performance. This paper discusses the effect of the addition of copper sulphate at different operating points of the recovery of the sulphide minerals. Batch flotation tests indicated that the recovery of chalcopyrite was not affected when operating conditions were varied, whereas pentlandite recovery was strongly affected by the point of reagent addition, and pyrrhotite recovery was enhanced by copper sulphate addition, irrespective of the point of addition, with the extent being dependent on the ore source. Floatable gangue was activated by copper sulphate in the presence of the dithiophosphate collector. Froth stability was also affected by copper sulphate addition.

Jan 1, 2007

By B. Derin, T. Uzunoglu, O. Yücel

In this study, reduction behaviours of Turkish chromite concentrate (48 % Cr2O3, 13.30 % FeO, 18.33 % MgO, 12.37 % Al2O3, 5.76 % SiO2) and nickel oxide by Fe-C alloy in graphite crucible were investigated. In the first stage of experiments, steel scraps were melted in graphite crucibles and were saturated with carbon at 1600 °C and 30 min. In the second stage, mixtures of different amount of chromite concentrate, nickel oxide and flux additives (CaO,SiO2 and CaF2) were charged into the graphite crucible containing the Fe-C alloy and heated to 1600 °C for different reduction times (0-180 min) under argon gas. The highest Cr and Ni con-tents in alloys were found as 11.41 and 14.37 % and the highest Cr and Ni recoveries were found as 88 and94 %, respectively at 180 min.

Jan 1, 2007

Book review Pearson, J. S. Ocean floor mining. Park Ridge (New Jersey), Noyes Data Corporation, 1975. 201 pp. NIM reports Report no. 308 A mineralogical study of gold particles in pulp residues from the Bracken Gold Mine. (7th Mar.,1968. Re-issued Oct. 1975.) Report no. 377 Examination of pulp samples, treated with cyanide, for coated gold.(7th Aug., 1968. Reissued Oct.1975.) Report no. 385 The determination of the nature of coatings on gold particles. (2nd Aug., 1968. Reissued Oct. 1975.) Report no. 452 The Purlex Process - a description of the pilot plant leading to the use of the process in South Africa. (13th Jan., 1969. Re-issued Oct. 1975.) Report no. 482 Review of work on the treatment of pegmatites. (9th Apr., 1969. Reissued Sep. 1975.) Report no. 1443 Gravity concentration tests on four samples from Tantalite Valley,S. W.A. (5th Jul., 1972. Re-issued Sep. 1975.) Report no. 1489 The breakage of S oderberg electrodes. (10th Nov., 1972. Re-issued Nov. 1975.) Report no. 1545 A mineralogical investigation of leach residues from the Blyvooruitzicht Gold Mine. (22nd May, 1973. Re-issued Nov. 1975.) Report no. 1583 Preliminary tests on winnowing for the recovery of mica. (12th Nov., 1973. Re-issued Sep. 1975.) Report no. 1652 The identification of diamonds from Premier, Finsch, and Jagersfontein Mines by statistical analysis of data obtained from instrumental neutron-activation analysis. Report no. 1723 The determination of zirconium and aluminium in zirconiumaluminium alloys. Report no. 1739 The determination of trace amounts of noble metals in sulphate media. Report no. 1771 The determination of silver, selenium, tellurium, antimony, tin, lead, and arsenic in anode sludges. Report no. 1772 A study of copper recovery by lime roasting and leaching. Corrigendum The Special Issue of Volume 76 of the Journal ('Recent Advances in Mineral Dressing, October 1975) should be corrected as follows. The South African Institute Of Mining And Metallurgy - Information On Membershlp The Institute was founded in 1894 as the Chemical and Metallurgical Society of South Africa. In 1904 it was reconstituted as the Chemical, Metallurgical and Mining Society of South Africa and in 1956 it became the South African Institute of Mining and Metallurgy. Die Suid-Afrikaanse Instituut vir Mynbou en Metallurgie - Inligting Oor Lidmaatskap Die Instituut is in 1894 gestig as die Chemiese en MIetallurgiese Vereniging van ::!nid-Afrika. In 190-1is dit omvorm tot die Chemiese Metallurgiese en Mynbouvereniging van Sllid-Afrika en in 1956 het dit die Suid-Afrikaanse Instituut vir Mynbou en l\Ietallurgie geword.

Jan 2, 1976

By S. M. Spottiswoode

Crush pillars are widely used in mine workings on the Merensky Reef in the Bushveld Complex to prevent panel collapses. Crush pillars are expected to fail as or soon after they emerge from the face and failure should occur non-violently. Unfortunately, violent failure occurs frequently and is said to be the main cause of seismicity associated with mining of the Merensky Reef. Recent work by Napier, Malan, and du Plessis has shown that limitequilibrium quasi-static models are able to simulate pillar failure using three states of strength of rock in pillars, namely intact, residual after failure, and decayed strength after later time-dependent (viscous) weakening. We have previously introduced an additional state of strength to account for the dynamic failure that results in seismic events, and found that this approach could be used to generate synthetic seismic catalogues similar to observed seismicity for deep-level gold mines, where seismicity takes place mostly on advancing faces. The less brittle seam material of the Merensky Reef, compared to the brittle quartzites and lavas of the Witwatersrand reefs, results in little or no face bursting and is modelled with an assumed plastic strain of some 0.005 over an effective stope width of 2 m before failure. When this plastic yield is surpassed, we allow the reef to fail ?seismically?. We show that synthetic seismic catalogues modelled in this way have some of the features of observed seismicity. Analysis is greatly facilitated using our custom-built software that reads the mine?s survey data into a database and presents results in an interactive graphical form.

Jan 1, 2014

By A. H. Swart

Rock engineering is concerned with the design of rock structures generated by mining activities. Therefore, rock engineering designs have major implications for the safe recovery of mineral deposits and operating costs. The paper deals with a few challenges facing rock mechanics engineers operating in the hard rock underground mining environment in South Africa. Finally, examples are included, which may assist rock mechanics engineers in providing better designs, which could ultimately lead to further improvement in safety and lower operating costs.

Jan 1, 2005

By E. Swart

The purpose of this paper is to provide an overview of the current legislative framework for mine closure within South Africa as well as the new requirements in terms of the Mineral and Petroleum Resources Development Act, 2002. The roles and responsibilities of Government, the mining industry and other stakeholders and confusion caused are also highlighted.

Jan 1, 2003

By L. Archambeault

This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007