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By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for the expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated ?risk? via the discount rate and other assumption contingencies around gold price expectations, operating parameters etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Carbon Modelling Technology and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. 44 percent chance of project finance loss.

Jan 1, 2012

By L. Prosch

"The word 'sustainability' has gotten such a work out lately that the whole concept is in danger of floating away on a sea of inoffensiveness" Michael Pollon. It is estimated that approximately 65% of the roughly 130 million carats of diamonds mined globally per annum originate in Africa and has an annual value of US$ 8.4 billion', Many of these mines are located in remote areas of the continent where the directly affected project community's income is often well below the poverty line. Often associated with these communities are occurrences of localized over exploitation of natural resources, environmental destruction and the abundance of social ills.

Jan 1, 2010

By A. Cambitsis

We show that the prioritization of business improvement and performance management decisions may be significantly improved by taking into account the systemic effects of changes made in a single process area. To do so we build a model of a mining value chain, taking into account consequential downtime that arises from downstream and upstream starvation and choking effects of each activity. Introducing the concept of internal capacity, this approach yields insight into the relative importance of key metrics such as loading and hauling rates. We suggest that a holistic view of this type should be a core component of business improvement and performance management decisions.

Jan 1, 2012

By Thomas V. Fame, William E. Porter

"As geological and mining conditions become more complex, and as overall mining economics become more marginal, short- and long-range decision-making regarding multiple-seam surface mining becomes more difficult. The decision-making problem involves a study of economics, cut-off grades and ratios, equipment capabilities, sequencing and selective mining practices.This paper is concerned primarily with multiple-seam mining of bituminous coal. The research has led to the development of an economic decision-making model for use as a day-to-day tool to aid mine operators and pit geologists to decide what and how to mine.The model is designed as an aid for feasibility decision-making in multiple-scam situations and for situations where selective mining is needed or desired. In effect, a simulation of the feasibility and preliminary mine planning phases has been developed. The model is divided into four separate segments: decision-making, simulated mining, cost calculations and the determination of the discounted cash flow return on investment."

Jan 1, 2014

By G. C. S. Burns

"A system has been developed to simulate the mining of the Mufulira orebody. The main output from the system is a picture-gram from which the start date and effective life of all proposed mining faces can be measured. This information provides schedule dates for the completion of major capital development projects and stope preparation activities.The orebody must be divided horizontally into main levels and vertically into blocks of equal interval. Ore reserves are defined by specifying the tonnage contained in each block and main level. Mining faces are defined by their co-ordinates, and may themselves be split into sublevels. The simulation maintains an echelon between contiguous sublevels. Other face parameters control the speed of mining, the availability and relative priority of the face.The required production from each crusher/shaft system is specified. The technique of simulating the mining process in order to achieve the required production is described."

Jan 1, 2014

By R. G. B. Pickering

The Faculty of Engineering at the University of the Witwatersrand and the Mining Technology Division of the CSIR have co-operated to define the problems associated with deep level mining and in this paper they will identify what they consider to be the critical areas requiring technological solutions. This perspective will then be applied to work currently being carried out by both the organizations and gaps for additional developments will be identified. Finally the Co-operative Research Centre methodology operating in Australia is described. The purpose of this CRC is to provide a vehicle for R&D co-operation to develop and implement technologies which will increase the competitiveness of the mining industry. A further objective is to develop an appropriately skilled human resource base.

Jan 1, 1996

Minerals and Manpower - PRESIDENTIAL ADDRESS given by R. P. Plewman, Pr. Eng., B.Sc. (Eng) (Wits), M.A. (Oxon.) INTRODUCTION What I want to discuss is the future pattern of manpower in the mining industry, and I should like to begin by examining some relevant statistics. There are four areas that must be examined. Firstly, the future rate of production of different minerals must be estimated. Secondly, an assessment must be made of the balance of different mining technologies likely to be used for each mineral. Thirdly, the manpower requirements for each technology must be determined. And, fourthly, the future manpower resources of the country must be explored. NIM report Report No. 1646 Examination of the methods of analysis for calcium fluoride in fluorspar.

Jan 10, 1974

Stochastic methods are normally invoked / used to assist with the understanding of risks, when there is uncertainty around a particular outcome. Uncertainty implies that there is a risk that the desired outcome will not be realized. Stochastics and probability theory has long held out the promise to answering this need, but has often been maligned because of its misuse. This paper takes a critical look need for Monte Carlo simulation to project risk evaluation and highlights what is considered to be the fundamental issues that should be thoughtfully considered to avoid the abuse of this technique. The upside of avoiding the abuse of this technique will be the wider acceptance by practitioners that it is a credible technique to quantify this important aspect of valuation.

Jan 1, 2007

By R. G. B. Pickering

The Faculty of Engineering at the University of the Witwatersrand and the Mining Technology Division of the CSIR have co-operated to define the problems associated with deep level mining and in this paper they will identify what they consider to be the critical areas requiring technological solutions. This perspective will then be applied to work currently being carried out by both the organizations and gaps for additional developments will be identified. Finally the Co-operative Research Centre methodology operating in Australia is described. The purpose of this CRC is to provide a vehicle for R&D co-operation to develop and implement technologies which will increase the competitiveness of the mining industry. A further objective is to develop an appropriately skilled human resource base.

Jan 1, 1996

By L. Marais

The development of a post-mining economy is generally framed as accessible and desirable and something that mining companies, consultants, and the government can, and should, plan for. It is indeed possible. Yet, most mining regions, other than the big metropolitan municipalities, find economic diversification after mining challenging, despite their grand plans, consultant reports, and company intentions. Their efforts blind them to other ideas that are often prerequisites to diversification. This paper highlights some economic and social misconceptions about economic diversification and explains where planning goes wrong. Mistakes typically stem from ignorance and misunderstandings. Planners and policy makers fail to grasp the essential requirements for economic diversification. They underestimate the structural constraints created by mining. They do not see how mine rehabilitation is linked to economic diversification. They generally do not understand the South African space economy or the nature of new economies. The paper also proposes a more careful consideration of those economic aspects that mining cities have control over, such as land use management and infrastructure. The paper further explains how understanding long-term dependencies can help prevent governance failures. The social disruption that accompanies mine decline and closure must be recognised and dealt with. The mines must plan for decline as a way to resuscitate the economy. It concludes with a framework for assessing and developing a post-mining economy.

Apr 25, 2025

By F. T. Cawood

This paper focuses on the role of the coal mine surveyor at the start of the 21st century. It demonstrates that surveyors must look beyond their legal appointment and pursue opportunities to add value at an operational or corporate level of the company. It also exposes the shortfall of statutory appointments in defining the surveyor?s role in terms of key business drivers of the company. One such an opportunity is the potential role of the surveyor in mineral accounting and quality assurance to meet mine requirements, market specifications and standards pertaining to corporate governance and reporting. Finally, some thoughts are expressed on what can be done to elevate current practice to best practice and how to achieve this goal

Jan 1, 2007

By B. C. Alberts

Planning the use of South Africa's energy resources, especially coal, is of the utmost importance. The State and the mining industry require reliable official estimates of the economically mineable coal reserves for planning purposes. An overview of al the previous reserve estimates is given, with specific attention to the two most recent estimates-those of Petrick and De Jager. The differences between these two estimates are highlighted. The following important aspects are discussed: . the need to update the information regarding South Africa's mineable coal reserves, . the necessity of understanding and agreement between the coal-mining industry and the State department responsible for updating the coal-reserve data, and . the importance of the specific assumptions used in the updating of the data. A downward adjustment of mineable reserve figures is proposed, and the factors that influence the meaningful exploitation of the coal reserves are discussed. A recommendation is made as to how the Waterberg coal reserve should be exploited, and it is concluded that the Soutpansberg Coalfield cannot be exploited economically in the foreseeable future. An evaluation of the status of the coal-export trade is made and compared with the assumptions and targets set at the start of the coal-exportation scheme. The comparison shows the extent to which the exploitation of the coal reserves is being negatively influenced by the current market situation. Recommendations are made regarding planning for the coal-export market, and the aspects that have to be taken into account to keep South Africa in the export market are identified. Reference is made to the fact that the present unrestrained wage and salary adjustments, which show a total disregard of South Africa's poor productivity record, require serious thought and speedy rectification if the country is to survive in the export market. A salary and wage strategy must be developed to suit the specific needs of the Republic of South Africa.

Jan 1, 1987

By H. Appiah

Small scale mining (SSM) has been going on for a long time in Ghana. SSM was legalized by the PNDC Law 218, 1989. Since then there have been numerous gains from the SSM industry. The SSM is organized locally by the concession owner who engages people to work for the gold which he buys. Small scale miners (SSMs) use crudely made sluices in Ghana and, therefore, their production falls below what is expected. The SSMs work in groups and not as cooperatives, as they do in Brazil and other Latin American countries. Legalization of SSM has curbed gold smuggling considerably because a gold marketing entity is available. SSM poses certain environmental problems like pollution of water bodies and soils by mercury and indiscriminate digging of pits.

Jan 1, 1998

By M. C. Holton

South Africa has the world?s largest in situ deposits of platinum group metals, but economically exploitable resources are shrinking due to escalating costs and technical challenges. The South African National Research and Development Strategy comments that an increase in the knowledge intensity of the resource-based sectors is required to turn these resources to account. Highly trained human resources, continuous improvement, technological innovation, and smart acquisition of know-how will become the major differentiators in the global mining market. Mechanization and, ultimately, automation in mining have the potential to reverse the negative mining trend and resolve safety and other challenges. However, the adoption rate of mechanized mining in platinum (and hard-rock gold) has been slow for various reasons. Changing systems from conventional drill?and-blast to continuous mechanized mining is a big step-change endeavour. The problem of transformation is discussed, and the discipline of systems engineering is examined because of its successful application in aerospace and defence.

Jan 1, 2012

By J. O. Claassen

"SynopsisMining value chains are dynamic systems and should be managed according to systemic flow-based principles. This includes a detailed focus on the impact of variable geological conditions on material flow, product quality, and production cost, visibility of the total mining system to operators and managers, as well as the synchronization of resources and activities in downstream processes. Thirty mining operations across the African continent were studied to establish to what extent systemic flowbased principles are applied in day-to-day operations. The study indicated that although most mining operations have identified the relevant geoprocessing variables, only a small number apply this information in a flow-based management approach. Most mining operators do not focus on developing a clear flow view of the mining value chain and on making it visible to operators and managers to enable them to optimally set and reset operations. Daily synchronization of geoprocessing variables is limited to a small number of variables, e.g. synchronizing ore hardness with drilling or milling requirements, in less than 30% of the operations evaluated. Operations where these principles have been adopted reported a noteworthy improvement in performance. The study indicates that notable potential exists in most of the operations evaluated to implement flowbased management principles, including geometallurgical principles. This can significantly improve value chain performance without exorbitant capital layouts and enhance ROCE. IntroductionObjective of the studyThe study seeks to establish to what extent systemic flow-based principles have been adopted in the southern African mining industry and the implications thereof. Specific attention is given to the importance of defining and managing geoprocessing dependencies (geological variables directly impacting mining and plant performance – the geometallurgical approach), establishing a flow view of the mining system, which typically includes a dashboard of the flow of ore/product quality and cost from the mining face to the customer, and limiting the impact of dependencies through synchronization of activities and resources, e.g. ensuring that a continuous miner does not wait for a roofbolter, or that reagent addition rates are matched with a specific ore/concentrate composition."

Jan 1, 2015

By M. Hermanus, N. Coulson, N. Pillay

"SynopsisThis paper assesses the effectiveness of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH) and its potential to improve mine health and safety in South African mines. Developed by the Chamber of Mines, which represents the majority of the country's large scale mining employers, MOSH was devised to accelerate progress towards achieving health and safety milestones, which were set by tripartite agreement in 2003. The paper documents and builds on the findings of a study conducted by the Centre for Sustainability in Mining and Industry (CSMI) in 2011 that evaluated MOSH strategy, structures, and process of implementation.The study found that MOSH operated across the mining sector, was directed and dominated by experts and, despite best efforts to include other stakeholders, was led by employers. Statutory worker health and safety representatives and structures were not integrated into the complex change process developed by MOSH. The Mine Health and Safety Inspectorate (MHSI) and organized labour were ambivalent about direct involvement in MOSH and preferred regulatory measures to enforce the participation of mines. MOSH interventions were not targeted at mines with a poor health and safety record, and MOSH lacked a baseline from which to track impacts on sector-wide health and safety performance. The leading practices most widely adopted by mines were designed to improve, rather than fundamentally alter, existing practice. Although the depth of engagement with MOSH among stakeholders and on mine sites varied, mining companies, labour representatives, and the Mine Health and Safety Inspectorate (MHSI) saw the programme as significant.IntroductionIn 2011, the Chamber of Mines commissioned the Centre for Sustainability in Mining and Industry (CSMI) to evaluate the progress and effectiveness of the rollout of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH). CSMI, based in the School of Mining Engineering at the University of the Witwatersrand, is an independent research centre conducting health and safety research relevant to all major stakeholders in the mining sector. The purpose of the evaluation was to identify the factors that enabled or hampered the adoption of new technologies or practices. The timing of the evaluation, two years before the deadline for the 2013 safety and health milestones, allowed time for adjustments to be made. This paper summarizes the results of the evaluation and includes further analysis and discussion of the nature of the programme and the conditions that act to advance it or it hold back."

Jan 1, 2015

By H. E. James

Much has been said and written about the need to reduce South Africa's dependence on gold. To compensate for the decline in the country's foreign-exchange earnings resulting from the phasing out of gold, which must inevitably occur at some future date, a far higher priority will have to be placed on the mining, beneficiation, and export of the 59 other mineral commodities produced in South Africa. The basic strategy of the mining and metallurgical industries should be to move from the traditional approach of establishing a resource base to the establishment of a market base; to turn from production orientation to market orientation; and to rely less on exploration and economies of scale and more on process innovation and product development. The enthusiasm, entrepreneurial spirit, and commitment of the leaders in the mining and metallurgical industry will clearly be of decisive importance in the establishment of new industries for the beneficiation and export of added-value mineral-based products. The State can make a significant contribution by the provision of a welldeveloped and efficient infrastructure, including rail and harbour facilities, communications and health services, roads, and of electricity and water supplies. In our search for a new development strategy for the beneficiation and export of South Africa's minerals, we need to recognize that no one nation has all the mineralresources that it needs. Commercial and strategic manipulation of mineral supplies should no longer be tolerated. The future of the human species lies in international cooperation and in a greater understanding of the limitations of the world we live in.

Jan 1, 1985

By J. Uys, P. J. Mokganya, J. Olwagen, R. C. W. Webber-Youngman

This article discusses the critical role of leadership in the technology adoption process within organizations, particularly in industries like mining, where innovation is essential for maintaining competitiveness and operational efficiency. It highlights the limitations of traditional technology adoption models, such as the Technology Acceptance Model (TAM), Diffusion of Innovations (DOI), and Unified Theory of Acceptance and Use of Technology (UTAUT), which focus on individual factors and overlook the strategic and organizational roles of leadership. The study proposes the Ambidextrous Leadership-Technology Adoption (ALTA) model, which integrates leadership styles such as transformational, transactional, adaptive, and ambidextrous leadership into the technology adoption process. The model emphasizes the balance between exploration (fostering innovation) and exploitation (ensuring operational efficiency). The findings suggest that transformational leadership fosters innovation by encouraging risk-taking and creativity, while transactional leadership ensures efficient technology integration. The article also identifies key barriers to technology adoption, such as organizational resistance to change, which can be mitigated through adaptive leadership that addresses employee concerns. The research emphasizes the importance of a supportive organizational culture and cross-functional collaboration, which are essential for successful technology adoption. The study concludes by offering practical recommendations for leaders to foster a culture of innovation, manage resistance, and balance short-term efficiency with long-term technological advancement.

Nov 27, 2024

By J. Maritz, K. de Beer, S. M. Buthelezi

The economic upheaval of COVID-19 forced companies to invest in emerging technologies to aid recovery. One such technology is extended reality, which is becoming a mature and innovative tool. Early adopters are seeing significant benefits in learning, training, immersive data visualization, and remote assistance. In South Africa, the mining industry is increasingly interested in using extended reality to optimize and innovate operations. The Minerals Council of South Africa's July 2021 report highlighted the potential of extended reality's to achieve zero-harm production and modernize the industry. However, the extent of extended reality adoption in mining remains unclear due to limited information on its usage. This study addressed this gap by distributing an online survey to assess awareness, knowledge, and current uses of extended reality in South Africa’s mining sector. The results indicated that virtual and augmented reality had the highest levels of awareness and usage, primarily for learning and training. Mixed reality, however, had the lowest awareness and knowledge levels. In terms of applications, visualization and remote assistance had the least use cases. These findings highlight that the South African mining industry is deficient in its understanding and use of extended reality technologies. Without better awareness and application, the South African industry risks missing out on the full benefits of extended reality. The study underlines the need for the South African mining industry to improve its outlook on extended reality technologies to fully leverage their potential applications and benefits.

Jul 10, 2024

By P. W. J. van Rensburg

Our mineral heritage - PRESIDENTIAL ADDRESS given by P. W. J. van Rensburg, Pr. Eng.. B.Sc. (Eng.)(Rand) INTRODUCTION Stone Age people were living in various parts of South Africa as recent,ly as a thousand years ago, when they were displaced by Iron Age people with a culture developed in the far north. These invaders brought farming, building, and the earliest mining developments to the Transvaal, thus ushering in the beginning of our great mineral heritage. It is of particular interest to record that, up to comparatively recent times, some of these people were excavating iron-bearing shale rocks for their smelting furnaces on the Melville Koppies in J ohannesburg. Although the most recent the iron-smelting furnaces discovered on these koppies is estimated to be some five-hundred years old, it believed that these Iron Age people were driven out, and their settlements destroyed, by Zulu impis only one-hundred-and-fifty years ago.

Jan 10, 1973