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By MATT RENAUD, Mustafa Kumral

Mining corporations have spread their operations worldwide in the last few decades. The reason behind widening operations geographically can be seen as it being part of a risk diversification strategy. Given that the technical, financial and social risks are high, favorable deposits, taxation regimes and legislative frameworks create incentives for international mining operations. On the other hand, international mining activities add the risks of permitting, investing, operating and decommissioning to the corporations. These risks could emerge from defaulting, corruption, resource nationalism, social license to operate, and political and legislative uncertainties and instabilities.

The decision to contract or owner mine should be independent of, and should be made before, definitive estimated cost comparisons could be available. There is substantial potential risk of estimated cost comparisons being flawed due to difficulties in compiling comparable estimates for differing business objectives, errors and omissions or because of significant bias. In the current economic environment, escalating cost pressures potentially lead to increased incidence of disputes in mining contracts. The apparent cost of contractorÆs profit and overheads has tended to become more significant to owners. Economy-driven trends towards higher levels of performance and commercial risk for contractors, and the potential for more adversarial, difficult management; with attendant disputation between contractors and owners, have encouraged development of so-called ærelationship contractsÆ û partnering or project alliance contracts. The paper discusses the issues, circumstances when owner mining or contract mining is favoured and perceived advantages and disadvantages of contract mining. The implications of owner-perceived core business and core skills and outsourcing are also discussed. Techniques of introducing objectivity into the decision to owner or contract mine using matrix analysis or benefit comparisons are described. A disciplined procurement process should deliver a decision to owner or contract mine independent of, and prior to, any definitive comparison of estimated costs. A generic procurement process model is provided as a basis for discussion. Risk is discussed generally and as a significant factor in comparison of estimated operating costs. Consideration of risk and any prudent cost treatment are promoted as necessary pre-requisites to any comparison of estimated costs. The paper develops the concept that the decision to owner or contract mine should be based on real benefits that become obvious in the early stages of the development, particularly the procurement process; and before definitive estimated cost comparison can be available. In the context of this concept estimated cost comparisons tend to be confirmatory. Problems with comparing estimated ownerÆs operating costs with tendered contract prices are also discussed, particularly recovery of capital cost of equipment; and the owner minerÆs trade-off of operating risks for the residual contractorÆs margin attributed to overheads and profit. The paper concludes that sole reliance on a comparison of estimated ownerÆs operating costs with tendered contract prices in deciding to owner or contract mine is questionable and likely driven by a need to satisfy specific in-house customers.

Jan 1, 2003

By Claudio Ballota

Los sistemas de gestión empresarial son importantes -en tanto las estrategias de negocios acompañadas del apoyo de sistemas de información, permiten planificar, ejecutar y controlar el desempeño empresarial. Por ello, la integración de la información en una empresa a través de reportes gerenciales y herramientas de análisis, son fundamentales para cualquier ejecutivo que quiera desempeñarse exitosamente en el mercado moderno. En ese sentido, el presente texto señala la eficiencia del outsourcing de sistemas integrados en la administración de las empresas como un proyecto tecnológico de negocios que está dirigido a todos los empleados de la empresa que interactúan con sistemas para realizar sus tareas operativas diarias y para los gerentes que buscan información para tomar mejores decisiones.

Jul 17, 2000

By C. J. H. Steenkamp

Theoretically, the main driver behind a mining operations? sourcing decision should differ from company to company, and within a company from project to project, but in reality it often relates to cost. Research confirms that there are a number of factors, including cost, to consider when choosing between in-house and outsourced mining. While the literature is rife with factors to consider, little information exists on how to apply these in practice and the relative importance of the different factors to be considered. A study was conducted to determine whether mining is truly a core competency for a mid-tier commodity specialist mining company. Furthermore, a decision-making framework for mining operations sourcing was developed, and the critical success factors that should be adhered to if outsourced mining is chosen were determined. The research showed that owner mining is not a core competency for the mining company investigated. A decision-making framework was developed using the order winner/order qualifier structure, which can be used to facilitate the mining sourcing decision. The most important tools at the disposal of a mine owner?s team to manage a contractor miner are the social and output control mechanisms, according to the critical success factors study.

Jan 1, 2014

By J. R. Shultz, R. J. Lambert

One of the present trends in the mining industry is the increased use of mining contractors. In the past, many project owners have utilized mining contractors for topsoil stripping or overburden removal, usually on a short-term or periodic basis. In recent years, mining contractors have not only removed the overburden, but mined the product as well. Why is this change occurring? A prevalent trend in the mining industry appears to be the outsourcing of non-core and non-strategic functions, allowing producers to focus more on areas of technical expertise where higher incremental value is added—that is the processing, refining, and marketing of the product. As capital allocation becomes more critical, this trend is likely to continue.

Jan 1, 2002

Outsourcing of specialist and non-continuous services is common practice in international mining operations. There is an increasing trend towards this practice in South Africa as a result of the major organisational changes that have taken place in the industry, and as lower revenues and production cost pressures have reduced profit margins. Many specialist functions have been outsourced in the industry for a long time, an example being shaft sinking, which is undertaken by specialist shaft sinking contractors. In the professional services area, some activities have been outsourced, for example the design and construction supervision of tailings dams, but mining related activities such as geology, mine planning and scheduling, engineering, ventilation, and rock engineering, have traditionally been carried out by in-house staff. In this paper some of the industry problems which have led to an increase in outsourcing of professional services are considered. Then the pros and cons of outsourcing are dealt with before outlining the factors which should be taken into account in choosing an outsourcing partner.

Jan 1, 1999

By S. M. Rupprecht

"SynopsisOver the last decade in South Africa, there has been a significant increase in the number of mining operations, both open pit and underground, which use independent contractors to carry out mining activities. Often mine owners will choose the contractor option without fully understanding the consequences of undertaking this option. Traditionally, contract mining has come at a cost premium of about 15% to 20% compared to an owner mining scenario. However, due to the large number of junior mining companies entering the mining arena in South Africa contract mining rates have increased, with cost premiums as high as 50% being reported. This paper looks at the merits of owner mining versus contract mining and describes under what conditions it may be favourable to select the one option over the other. In addition, the methodology of entering into contract negotiations with the objective of establishing a fair and sustainable relationship is discussed.IntroductionOver the last decade in South Africa, there has been a significant increase in the number of mining operations, both open pit and underground, which use independent contractors to carry out mining activities. Surface mining, for example, may use contractors to conduct drilling and blasting operations or load and haul operations. Underground mining may contract out work such as shaft sinking, mining, support, construction work, cover drilling, sweeping and vampings. Common surface operations such as mineral beneficiation, waste disposal, security, and product transport may also be outsourced to contractors.Many companies have a business model that utilizes contractors for the entire mining cycle, maintaining a small head office to provide direction and control. The difficulty with this option is that often mining companies will choose the contractor option without fully understanding the implications."

Jan 1, 2015

By A. P. Schissler

2013 has seen metals, industrial minerals, and coal all reduce in price due to market and geo-political factors. Many companies are taking write-downs to recalibrate their reserves and have enacted focused cost reduction programs. The public domain includes statements where companies have operating cost reduction goals in the $500 million range. Zero-base staffing & budget analysis is a means to achieve optimal employment and cost levels for a given level of production. The method involves measuring the work to be done similar to Lean. Lean is a method to review each step of production and remove anything that doesn?t add value or is necessary to complete finished goods. Zero-base methodology has been applied to mines worldwide producing realistic and sustainable levels of staffing and costs based on the quantity of work. The objective of this paper is to provide the framework of zero-basing with examples of application.

Feb 23, 2014

By Andy Lemay

Vale (previously known as CVRD) is: ? The second-largest mining company by market capitalization (NYSE:RIO) ? Headquartered in Brazil ? Global workforce of over 100,000 employees including outsourced workers. Vale Inco Limited is a wholly?owned subsidiary of Vale Vale Inco Limited ? is based in Toronto, Ontario Canada: ? Operations and Projects in 20 countries ? Marketing Network extending to 40 countries ? Over 12,000 employees worldwide ? Last years sales of US $8 Billion

May 1, 2008

By S. T. Johansen, B. T. Løvfall, T. Rodriguez Duran, J. Zoric

A methodology for building pragmatic physics-based models is here adapted to predict the erosion of ladle linings in the steel industry, in order to support operators when deciding whether the lining can be used safely for another heat. A defective lining may allow 140 t of molten steel to spill, with disastrous consequences for workers and plant. The adopted work flow for the development, challenges faced, and some model results are presented. One key learning outcome is that model development should allow time for maturing the process understanding, as well as for many iterations by ‘questions-responses and actions’ at various stages in the model development. Good interaction between the development team and industry case owner is an important success factor. Combining or extending the model with the use of machine learning and cognition-related methods, such as knowledge graphs and self-adaptive algorithms, is discussed.

Apr 16, 2024

By J. Petersen, T. Moyo

Waste Printed Circuit Boards (PCBs) are a metals-rich fraction of electronic waste (e-waste) streams, and globally it has been demonstrated that they can be recycled gainfully to recover the metals. Reported successful cases of PCB recycling are carried out in large volumes, using high-level technology and high capital investment smelter house operations. This presents entry barriers for recyclers in developing economies where capital may not be accessible, and the waste volumes are not sufficient to warrant large scale operations. Hydrometallurgical processes have the potential to provide an option for the scalable processing of smaller volumes of PCBs and can be set up at relatively lower capital costs. However, to date, the hydrometallurgical treatment options available rely on precursor communition and classification processes that also require high capital and energy costs. This paper presents an overview of the work done under the Minerals to Metals signature theme towards understanding e-waste recycling processes and developing pre-processing and characterisation of PCBs in order to unlock potential for local end processing in developing economies, using South Africa as a case study. The structure of PCBs is reviewed, and the current size reduction techniques and the subsequent leaching processes are discussed. Keywords: Printed circuit boards (PCBs), PCB structure, pre-treatment, liberation, ammoniacal leaching

Jan 1, 2020

By T. V. Vijaya Kumar

Most of the iron ore washing plants set up in India consist of sizing of the ore by dry / wet screening, washing and classification by screw classifiers followed by multi-stage hydrocycloning of screw classifiers? overflow. The underflow of the hydrocyclones forms the concentrate which is used for pellets making. As the cut-point of hydrocyclones is generally at 20 microns, relatively lower diameter cyclones in a cluster with parallel feeding are used. This is found to, often, result in choking of the spigots, at times, by extraneous material as well reporting along with the slurry. It is observed to lead to sub-optimum performance of the cyclones with loss of iron values into cyclone overflow and thereafter into tailings. Analysis of data of an operating beneficiation plant (Beneficiation Plant - 1, BP - 1) of M/s Jindal South West (JSW) Steel Limited, Karnataka, India over a period of one year indicated that weight recovery of the concentrate from two-stage hydrocycloning was 45% (with respect to feed to the cyclones) and assaying 63.43% Fe, 4.43% SiO2 and 2.32% Al2O3. CSIR - National Metallurgical Laboratory - Madras Centre (NML - MC), India developed flotation process for processing screw classifier overflow with a view to improve the recovery of ultrafine iron values from it. Detailed investigations at laboratory scale flotation column and on-site pilot plant trials proved that the production of the concentrate and productivity of the plant could be enhanced by adopting reverse cationic column flotation technology. It was established that a typical screw classifier overflow analyzing 60.54% Fe, 5.95% SiO2 and 3.67% Al2O3 could be upgraded to 64.21% Fe, 2.64% SiO2 and 2.20% Al2O3 with 82.7% weight and 84.7% Fe recovery. This translates into an increase of 80% in weight recovery of the concentrate compared to what is being obtained, at present, by two-stage cycloning. It had an added advantage of reduced SiO2 in the concentrate. Thus, SiO2 in the final concentrate could be reduced to 2.64% from 4.43% by adopting column flotation. The concentrate so generated meets the stringent specifications, especially in terms of alumina in it(should be less than 2.50%) for pellets making. Later, JSW Steel Limited set up the flotation plant in BP - 1 based on the process developed by NML - MC and was commissioned in 2010. Keywords: iron ore, washing, ultra fines, alumina reduction, column flotation

Sep 1, 2012

By Eberhard Gock

The worldwide implementation of corrosion protection of low alloyed automotive metal sheets by zinc coating has led to supply shortages of zinc free non-alloyed steel scrap in the foundry industry. In a collaboration project, partly financed by the German government, with partners from the automotive industry, zinc metallurgy, scrap trading, foundry industry, and plant construction, a new acid-based pre-dezincification process has been developed, and a pilot plant with throughput of about 100 t/d has been put into operation at the Clausthal Umwelt-Institut GmbH (CUTEC) together with the Clausthal University of Technology in Germany. During the treatment process, acid from a zinc metallurgical plant will be supplied, which can be recycled to the primary zinc extraction process after raising the zinc concentration to more than 130 g/L zinc. This way, the separation of small amounts of iron by precipitation and the electrolytic zinc winning are outsourced and, as a result, the pre-dezincification process runs waste-free. In Germany, the amount of zinc coated ?new scrap? is approx. 3 million t per year with a zinc content of approximately 60,000 t per year. The possible additional incomes for the dezincified steel scrap are in the order of ?40 to ?50 per ton of scrap, the gained zinc content during the acid dezincification defrays the costs of the process, if the throughput is more than 700 t/d. In comparison to conventional dezincification during the electro arc furnace process followed by upgrading in a rotary kiln (Waelz process), the acid dezincification process running at a maximum of 50°C will cut the energy costs by up to 74% and the CO2 emission by up to 88%. In fact, a demonstration plant is being designed right now and will be installed for processing a part of the zinc coated metal scrap from the Volkswagen AG in Wolfsburg, Germany. Keywords: steel scrap, zinc-coated steel, dezincification methods, acid

Sep 1, 2012

By Felipe Poffo, Flávio Messas

Due to the high level of competition in tooling sector, a necessity to increase the level of processes and assets management has initiated. Based on the World Class Manufacturing methodology, applied mainly in serial production industries, we have challenged ourselves to adapt the main concepts and implement them in a tooling company. After one work year, we could notice 29% productivity improvement in the bottleneck process, 25% cost reduction in outsourcing, standardization of the processes, 8% reduction in direct labor. Consequently, it was possible to implement a financial reserve and a long term planning cash flow.

Nov 22, 2018

Since the days of Adam Smith and Milton Friedman the discussion of corporate citizenship and sustainability has been flooded with multiple contradictions, with proponents of sustainability saying that it is a crucial cog in the business strategy, while those against, maintain that æthe business of business is businessÆ and therefore sustainability issues are just add-ons. Sustainability arises from a deeply held vision by corporate leaders that businesses can and should play a role beyond just making money. Businesses should embrace the understanding that everything that a company does has an impact both internally and externally (communities, employees and customers), and the natural environment. This paper highlights the approach that led to a view that there is a contradiction between profitability, sustainability and community development, and we provide a further argument to the contrary. This argument is based on a comprehensive literature review of over three decades by various scholars linking corporate social performance and corporate financial performance. Driefontein Gold MineÆs approach is that of linking the community development, natural environmental and employee well-being initiatives and projects to the mineÆs business strategy. The paper further highlights the coordination and implementation mechanism of sustainability at the mine where the accountability lies with the head of the mine operations. A two pronged approach is employed where there is an internal dialogue on sustainability between the various departments coordinated by the sustainable development department and an external tri-sector partnership with local government, interested and affected parties and the mine. These approaches are closely linked to the contributions towards the mineÆs financial bottom line.

Jan 1, 2009

By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By W. A. Smith, M. C. Bekker, C. Marnewick

Projects or project-orientated approaches have become a common form of work in nearly all sectors of economies. This has led to concepts such as ‘projectified’ and ‘project orientated’ organizations. By defining projectification of a company, industry, or economy as the share of project work in total work, one can reasonably determine the impact that project management, and by default projectification, has had on that company, industry, or economy in terms of staff optimization and allocation. This paper presents the results for such a projectification study of the South African mining industry. This sector has long been a significant contributor to the country’s economy from a gross value added (GVA) and employment point of view. Understanding the impact of projectification and the project management way of work on this industry may potentially add significant value to both the mining and project management knowledge areas. We show that although the mining industry is considered by some to operate in archaic ways, the level of projectification has increased over time, and now represents approximately one third of all work conducted.

May 1, 2021

By Wang Xianzheng

For a long period of time, the Chinese Government has been attaching great importance to and supporting the rapid development of the coal industry. Particularly since more than 30 years ago, when China introduced the Reform and Opening-up policy, the reform and development of the Chinese coal industry has witnessed world-recognized achievements. National coal production increased from 618 million tonnes in 1978 to 3.52 billion tonnes in 2011. While China?s coal production accounts for 49.5% of the world?s total, its annual production growth contributes to over 80% of global production growth. China is a country utilizing coal as its main source of energy. As the Chinese Government gives support to the rapid development of new and renewable energy sources, as well as to increased coal utilization efficiency, the ratio of coal in the primary energy consumption mix will gradually decline. However, for a long period of time to come, the total volume of coal demand will keep rising modestly. The Chinese Government has been highly committed to and actively promoting the overall, coordinated and sustainable development model, which puts people first. It has put forward a strategic task to build an ecological civilization, and highlighted its resolve to uphold the basic national policy of resource conservation and environmental protection, with a view to the pursuit of sustainable development. China will incorporate its response to climate change into the national economic and social development program, and take effective measures to lower CO2 emissions 40?45% per unit of GDP in 2020 compared to 2005. At the same time, China will increase the ratio of non-fossil fuels to 15% in the primary energy consumption mix. All of the above factors have raised requirements for the Chinese coal industry, with implications for clear directions, plans and goals for the development of the coal industry.

Aug 1, 2013

By T. Bhambhani, O. Yavuzkan, D. R. Nagaraj

"The recovery of oxide Cu minerals by flotation is a longstanding challenge in the minerals industry, especially for high acid-consuming ores which would not be economical for direct acid leaching. Sulfidization (often using controlled potential sulfidization or CPS) using NaSH (or Na2S) followed by flotation using traditional sulfide collectors is the widely used technique. CPS has certain limitations: a) inability to recover certain oxide Cu minerals because they are refractory to sulfidization, b) high consumption of NaSH (or Na2S), and c) potential health and safety hazards associated with NaSH (and Na2S). Flotation of oxide copper minerals using alkyl hydroxamate (AHX) collector has been studied extensively. Investigations using single minerals and laboratory ore flotation have been conducted in the past to demonstrate the efficacy of alkyl hydroxamates. The technology has been used intermittently in plants. One of the main challenges in plant use has been quantifying the true potential for alkyl hydroxamates for recovery of various oxide Cu species in complex and variable ore systems and identifying the most suitable conditions for optimal use. Quantitative mineralogical analysis using QEMSCAN was used in this study to characterize flotation products lab flotation samples. Analysis of concentrates and tails from hydroxamate flotation and CPS flotation stages demonstrated that certain oxide Cu minerals respond exclusively to alkyl hydroxamates and not to CPS. The hierarchy of interaction of AHX with the various oxide Cu minerals could be inferred from these studies. Finally, these studies also allowed quantification of a group of minerals species, which (erroneously) report as part of the Acid-Soluble Cu [ASCu] but cannot be recovered by flotation, thereby facilitating an estimation of the true recovery potential for alkyl hydroxamate.INTRODUCTIONCopper that is economically recoverable occurs in three major types of ores, which are defined by the modal mineralogy of Cu. For sulfide ores, Cu occurs as sulfide minerals and is satisfactorily recovered by flotation using sulfide collectors. Non-sulfide ores, which contain Cu in the form of oxides, phosphates, carbonates and silicates, described in the industry as “oxide” ores (or ores containing “acid-soluble” Cu or ASCu), are currently treated using hydrometallurgy, which involves leaching with dilute sulfuric acid followed by solvent extraction and electrowinning, unless the ores contain acid consuming gangue minerals such as dolomite. For mixed sulfide-oxide ores (i.e. containing both sulfide and oxide Cu minerals) that do not contain acid consuming gangue minerals, Cu values are easily recovered by flotation of sulfide Cu minerals followed by leaching of oxides (only when a leach plant is available). However, when the ore contains acid consuming gangue minerals flotation is required to recover both sulfide and oxide Cu minerals."

Jan 1, 2018

"How Wall Street Darling Molycorp Undermined the U.S. Economy, Degraded our National Security and Distorted the Global Economic Balance and How These Falsehoods Continue to be Promoted Even Today INTRODUCTION & SUMMARY In 2007 the Molycorp Mountain Pass rare earth mine was resurrected from its desert-grave in California by its then-owner Chevron Mining. Responding to elevated rare earth prices Chevron began processing on-site rare earth concentrates left over from past mining operations that were terminated in 1998i. Chinese demand had sparked what was being described as a commodities super-cycleii. Commodity prices were on the move. Wall Street smelled opportunity. In 2008 Goldman Sachs, Pegasus Partners, Resource Capital Funds, Traxys North America LLC and Carint Group LLC acquired the mining assets from Chevron. In an environment of ever-declining ethical standards and regulatory consequences the private capital group and their investment bankers would bring Molycorp to market. Molycorp, with its high powered investment banking team of Morgan Stanley and J.P. Morganiii, easily dominated the contest. Molycorp promoted itself, largely based on its past operating history and proven reserves, as the best company to challenge China’s monopoly control over the production of rare earths: a group of elements critical to most advanced technologies and U.S. defense systemsiv. Most of Wall Street’s hottest investment sectors were dependent on these materials: alternative energy, green technologies, computing, personal communications, advanced electronics and defense systems. By late 2010 there were dozens of prospective rare earth start-up ‘mining companies’ seeking capital. Eventually the number of prospective rare earth mining companies seeking capital exceeded 400, despite the reality that supply requirements of this market were disproportionally small when compared to other natural resource sectorsv. In the world of finance ‘smart money’ picks the winners. Consequently just twovi projects attracted nearly all of the capital (Molycorp and Lynas). Wall street picked Molycorpvii. This paper will primarily focus on Molycorp. By early 2010 the words “Molycorp” and “Rare Earths” electrified many people in the mining industry, most non-Chinese manufacturing technology companies, U.S. & allied defense contractors, technocrats in the U.S. national security community and eager investors across most of the world’s stock markets. It was the hottest story of the yearviii. The financial, technology and defense press coverage verged on euphoric: heaping fuel on fuel until the highly combustible Molycorp-pyre cast a long shadow over all of its rivalsix. When the IPO match was lit the spectacular flaming pyre sucked all of the oxygen out of the rare earth spacex. Molycorp was ranked the most lucrative IPO of 2010, resulting in record breaking profits to its private investors and massive returns for its early stock holding investors."

Jan 1, 2017