APPLICATION

OF COMPUTER METHODS
IN THE MINERAL INDUSTRY
PROCEEDINGS OF THE TENTH INTERNATIONAL SYMPOSIUM

Johannesburg, Republic of South Africa

10th April -14th April, 1972

Sponsored by
South African Institute of Mining and Metallurgy
South African Council for Scientific and Industrial Research
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South African Council for Automation and Computation

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Edited by I
M. D. G. SAlAMON and F. H. LANCASTER
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Published by
The South African Institute of Mining and Metallurgy
Johannesburg
1973
 ISBN 0 610 00774 5

P"'''T ~ D "y J. G. 'N"" • • 0 .. (PTY.) ~Tg.

JOH A NN~."U"," • • OI.lT H ...... .. 'CA.

Contents

Page
PREFACB

CoMMITTEES

ACKNOWLEDGEMENT xiii

FOREWORD xv

OPEN I NG SESSION

W ELCOMINO AODRESS Prof. D. D . Howatt, President, South African Institute of Mining and
Metallurgy . . . . . . . . xvii

OPENINO ADD RESS Mr. J, W. Shilling, President, Chamber of Mines of South Africa XIX

KEYNOTE ADDRESS Mr. K. F. Lnne, Rio Tinto Zinc Corporation Limited. Ecouomicand Financial
Modelling . . . . . . . ., XXI

SESSIONS

EXPLORATION Corporate exploration strategies, by B. W. Mackenzie 1

The Engel Simula to r and the search for uranium, by J. C. Griffiths a nd D. A.
Singer 9
REPORT 369

ORE R£SI!RVE ASSESSMENT Statistical valuation of diamondiferous deposits, by H. S. Siehel 17

Goostatistical ore reserve estimation, by M. David and R . A. Blais 27
A model of Dougainville Copper's Panguna orebody. by M. R. L. Blackwell 35
RHPORT ,. . . . . . . . . . . . . . . . 371

INDUSTRY-WIDE A forecast of the coalllnd uranium requirements for electric power genera-
PROJl!crION tion in South Africa, by E. J. Maunders ....,... . . ... . 41
Optimizing the public gains from too exploitation o f mineral TC:,<;ources, by
A. Azis and J. Zwarteodyk . . . . . . . . . . . . . . . . . . . . . 47
Possible modes of government participation iD marginal mining o perations.
by J. L. Collins, A. Dube, A. Oalibois and H. Monette 51
REPORT J73

ExPLOItATION ANALYSIS Ore reserve estimation and depiction planning for a beach diamond deposit
by M. M. Ooste[veld . . . . . . .. . . .... 65
E valuation of geochemical data, by C. J. Lenz . . . 73
Optimum spacing for soil sanlple travcrses, by w. A. HodHson 75
A drillhole data bank, by M. R. Anderton 79
Research io oil exploration decision-making: estimation of wildcat well
outcome possibilities, by J . W. Harbaugh and A. Prelat 83
3-71

PROJECT DESIGN AND Design of crushing plant flowsheets by simulation, by T. Gurun 91

A NAL¥SIS The impact of transportation network upon the potential supply of base and
precious metals from Sonora, Mexico, by P. de V. Ha rris and D. E. Euresty 99
Profitability sensitivity analysis of a mining .... enture. by C. A. BeasJey and
E. P. Pfleider . . . . . . . . . . .. 109
Technological innovation and its potential etTect on the opening of new gold
mines in South Africa, by N. C, Joughin 115
REPORT 379

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MINE PLANNING Aids to planning production in coal mines, by F. H. Deist and M. P. Roberts 123
Capacity calculations, investment allocation and long-range production
scheduling in Gem1an coal mines, by F. L. Wilke . . . . . . . 133
Ore reserve evaluation and open pit planning, by J. M. Marino andJ. P. Slama 139
REPORT . . 383

OPEN PiT PLANNING Optimum design of an open pit, by D. A. Phillips 145

An open pit design system for stratiform orebodies, by L. A. J. Pronk van
Hoogeveen, J. R. CutIand and M. Weir .. . .... . . 149
An open pit design model, by R. H. Robinson and N. B. Prenn 155
REPORT 387

PROJECr DESIGN The use of dynamic programming for determining mine-mill production
schedules, by R. J. Roman . . . . . . . . . . . . . . ... . 165
Optimization studies on the design of a processing plant for a large mining
venture, by J. C. Paynter, B. K. Loveday and C. G. Robinson 171
Economic surface mining of multiple seams, by T. V. Falkie and W. E. Porter 177
REPORT . . . . . . . . . . . 389

GEOLOGICAL MODELLING Unrolling of Copperbelt orebodies, by J. H. E. Perry and V. H. Wiik 185

An exploration model for tabular orebodies, by G. S. Koch and R. F. Link 189
Harmonic analysis of coppor and gold occurrences in the Abitibi area of the
Canadian Shield, by F. P. Agteroorg and A. G. Fabbri . . . . 193
Mathematical models of orebodies, by M. J. Newton and A. G. Royie 203
Estimation of lateritic-type orebodies, by A. Journel and Ch. Huijbregts 207
REPORT 393

PRODUCTION PLANNING Long-term mine production scheduling, by G. C. S. Bume 213

An application of linear programming to investment analysis, by A. Erlandsson 219
Optimizing medium-term operational plans for a group of coppcr mines, by
M. Spiaine, D. C. Atkinson, W. Davison and L. Smith . . . . . 225
The simulation of underground stoping and transport operations in gold
miniug. by F. H. Touwen and-N. C . Joughin 231
REPORT. 395

PRODUCTION PLANNING Linear programming models of copper leach and solvent extraction plants, by
AND CoNTROL W. P. C. Duyvesteyn, J. R. Cutland and J. R. L. Russell . ... .. . 237
Planning and forecasting stope production, by D. W. Kappes and P. F. X.
Moussett-Jones ..... . 241
A proposed method of dynamic orc reserve assessment for a caving system of
mining, by A. F. Spinks and S. P. Nicholls . . . . . . . .
Planning of underground copper mining, by J. K. Williams, L. Smith and
247 i
M. P. Wells
REPORT . . .
251
397
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ROCK AND VENTILATION Rock mechanics in the design of mine layouts, by K. Hodgson and N. G. W.
CONTROL Cook . . . 255
Computer applications in rock mechanics, by F. H. Deist, E. Georgiadis
and J. P. E. Moris . 259
Automated reg.ulation of mine ycntilation, by £.. Niskanen _ " 2.7
REPORT . . . . . . . . . . . 401

OPERATIONS PUNNING Planning open pit mining operations using simulation, by A. Bauer and P. N.
AND CONTROL Calder . . . . . . . . . . . . 273
Simulation of underground liquid flow, by G. N. Pitts and P. B. Crawford 279
Evaluation of production strategies in a group of copper mines by linear
programming, by P. H. Williams, J. N. Brooke and D. M. Poulter 285
An equipment maintenance systcm, by D. W. Dean and J. A. Ryder 291
REPORT . . . . . . . . . . . . 407

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TECHNICAL PLANNING Computer-aided design ofa flash smelting installation, by M. A. T. Cocquerel,
AN]) CoNTROL R. T. Gates and C. A. Green . . . . . . . . . . . .. 295
Heat flow models in ventilation planning, by A. J. Dickson and A. M. Starfield 299
Application of computer methods for planning, checking and controlling
mine ventilation, by E. U. Reuther and A. Dohmen . . . . .... .. 305
Coal mine ventilation systems in the U.S.A., by R . Stefanko and R. Y. Ramani 31 I
R EPORT . 411

PKocess CONTROL The simulation o f crushing plants with models developed using multiple
spline regression, by W. J. Whiten . . . . . . . . . . . 3 17
Simulation. of multicomponent Ho tation plants, by B. K. Lovedayand O. R.
M =~t . .. ............. m
Computer control of flotation at the Ecstall concentrator, by M. P. Amsden,
C. Chapmao and M. O. Reading. . . . . . . . . . . 331
Model For the design and control of flotation plants, by R. P. King 341
REPORT' • . . • . . • . . . • • . . . . . • . , 413

MARKET A NALYSIS The relevance of computer' methods to the economics of mineral industry, by
R. A. Pcrlman . . . . . . . . . . . . . . . . 351
Dynamic control or a mining enterprise, by R . G . Coyle . . . . . 357
An economic model of the mineral sands industry, by O. P. A. Howe 361
R F.1'QRT 417

PANilL DISCUSSION 419

DELEGATES 421

A UTHOR INDEX 431

INDex 433

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Preface

TIle proceedings of APCOM are presented in tills vol ume in two parts, first, the papers
grouped according to the sessions at which tiley were presented, and second. reports Oil
the corresponding discussions, again according to se~~iolls.
Instead of reprodl1cing the discussions ve(batim, the COUTSC has been followed of
presenting reporL.. 00 eacb sess.ion, whiclt, it is hoped, will highlight the salient and
relevant poinls. These reports have been compiled by ra pporleurs to whom it was left to
report in their own way on the points discussed.
It will be observed that both the metric and imperial systems of nomenclature and
units have been used in the papers. Bec-dUSC of the ose of the comma instead of the
decimal point in the metric system, in these proceedings spaces have been used instead of
commas to ind icate thousands in long numbers.
Our thanks are extended to the referees and rnpporteurs for their assistance which
eased considerably our work. We are grateful also to lite printers, J. G . Jnce & Son (Ply.)
Ltd., fOI their patience in producing these prOttC<lings.
THE EDITORS
Committees

Organising Committee
P. W. 1. VAN RENSBURG (Chairman) - Manager, Gold Fields of South Africa Limited,
and Vice-President, South African Institute of Mining and Metallurgy.
G. P. BENNETI - Anglo-Transvaal Consolidated Investment Company Limited and South
African Council for Automation and Computation.
M. DE HAVILLAND - South AfriC<'ln Council for Scientific and Industrial Research.
O. R. J. GUrSE - Assistant Manager, Gold Fields of South Africa Limited.
S. D. HILL - Office of the Government Mining Engineer.
D. G. KRIGE - Financial Engineer, Anglo-Transvaal Consolidated Investment Company
Limited.
F. H. LANCASTER - Information Officer, Research Organisation, Chamber of Mines ofS.A.
V. E. MARTlNG - V. E. Marting & Associates, and Computer Society of S.A.
A. H. MUNRO - Head of Operations Research, Gold Fields of South Africa Limited and
S.A. Statistical Association.
R. P. PLEWMAN - Professor of Milling, University of the Witwatersrand, and S.A.I.M.M.
Council.
M. D. G. SALAMON - Director, Collieries Research Laboratory, Chamber of Mines ofS.A.,
and S.A.I.M.M. Council.
H. S. SICHEL - Acting Director, Graduate School of Business Administration, University
of the Witwatcrsrand, and Operations Research Society of S.A.
A. M. STARFlELD - Professor of Applied Mathematics, University of the Witwatersrand.

Technical Programme Sub-Committee

A. H. MUNRO (Convener)
D r. D. G. KRIGB
Dr. M. D. G. SALAMON

Editorial Sub-Committee
Dr M. D. G. SALAMON
F. H. LANCASTER

Symposium Arrangements
G. R. J. GUISE (SymposiUm Manager)
R. ESPLEY-JONES
J. M. FOWLDS
G.B. GRANGE
P.LAMBOOY
E. A. QUILLIAM

Ladies' Sub-Committee
Mesdames F. DOUGLAS, A. KRIGE, M. MUNRO. B. VAN RENSBURG (Chair)

xi
Acknowledgement

CONTRIBUTORS TO SYMPOSIUM FUNDS

Financial assistance that made possible the organization of this symposium 011 the scale realized and the
publication of these proceedings was received from the following organizations:
Mrican Explosives and Chemical Industries Limited
African Selection Trust Exploration (Pty) Limited
African Wire Ropes Limited
Anglo American Corporation of South Mrica Limited
Anglo-Transvaal Consolidated Investment Company Limited
Chamber of Mines of South Africa
Clydesdale (Transvaal) Collieries Limited
General Mining and Finance Corporation Limited
Gold Fields of South Africa Limited
International Computers South Africa (Pty) Limited
Johannesburg Consolidated Investment Company Limited
Palabora Mining Company Limited
Rand Mines Limited
South African Cement Producers Association
South African Iron and Steel Industrial Corporation, Limited
Southern Cross Steel Company (pty) Limited

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 Foreword
The Tenth International Symposium OD the Application of
Computer Methods in the Mineral Industry - or APCOM,
as it came to be known - was the first of the series to be
held outside the North American continent. The first
symposium was staged by the University of Arizona in
1961, and sillce then Stanford University, the Colorado
School of Mines, PCWlsylvania State University and the
Society of Mining Engineers of the American lostitllte of
Mining, Melallu[gical aod Petroleum Engineers have acted
together with the Univenity of Arizona as co-sponsors of
the series.
TIle Ninth Symposium was held in 1970 io Montreal and
was sponsored by the Cnnadian Institute of Mining and
Metallurgy together with McGill University and &ole
P oiytcchnique.
AI the invitation o f, and in coUabomtion with, the five
American co-sponsors o f previous Symposia, lbe Tenth
Symposium was organized by tbe South African Institute of
Mining and Metallurgy, together with tbe South African
Council for Scientific and Industrial Rescarch and the
South African Council for Automation and Computation.
That the symposium was hold in South Africa we regarded
as a great honour, and we much appreciated the invitation
[rom the co-sponso~. We also regarded it as a great
opportunity to enable those of lIS who have not attended
the carlier Symposia to meet and talk to the Ove(Se.1S experts,
and, not least, it presented the opportunity for those of liS
who have attonded the earlier symposia to repay some of
the hospitability which wc had received while visiting North
America.
We were successful in cl\ticing to South Africa a number of
people who have been intimately connected with previous
sympo!lia. The attendance Ilt APCOM o f these pwple as
well as that of the lar~e Dumber of delegates from out5.ide
the Republic of South Africa and their participation in the
wide-ranging topics dealt with in a concentrated programme
which included 60 papers was a factor which contributed
greatly to the outstanding success of the Tenth Symposium.
Of the 400 registered delegates, ovcr 100 came from 13
foreign countries.
Being part of tbe mioua1 industries of their various
couotries, delegates had a deep interest in the progress in
their own fields, be this mining, metallurgy, geology or
one of the many other fields impinging on the mineral
industry. We were successful in bringinj together workers
from all these disciplines, including mathematicians, opera~
tions research specialists, as well as academics, who all
contributed to the success of tIte symposium. Perhaps too
little was heard from management, a nd the clearest message
from the deliberations was that the computer is a powerful
tool Ihat can solve complex. prob!em~ but thDt it is essential
that those who have to make the decisions understand what
is .going on.--CemputcF pceplo.-JIaveeeveleped (l, j!ll'gen-ef
their own, and have created a problem for themselves. They
must [earn to speak the same language as management.
Once that is sorted out, we eau make progress.
As we reOect upon and review the deliberations of this
Symposium, as recorded in this publication, we are certain
to find much to belp in improving and implementing our
methods, as well as worthwhile new applications that will
lead to greater profits - that, after all, is what business is
a ll about. And if advanced methods can change resources
into reserves, then we are really going to get a pay-off.
During the course of the Symposium light relief from the
many technical ses~ions was provided by a number of social
functions and tours to places of interest. Out' thanks ru'e due
to the Mayor of Johannesburg for the wine and cheese party
and the Musical FOllntain Display at Wemmer Pan; to the
Cllamber of Mines of South Africa for a cocktail party at
their Pavilion a t the Milner Park showgrounds as weB as a
great deal of as.~i stance in organizing a n African tribal
dancing display, visils to gold mines and to their research
laboratories ; to the University of the Witwatersrand for their
Golden J ubilee r~eption in their new sports centre. To
this list we must fidd the JohannesbmB Municipality for tIle
tour of African townships, the Krugersdorp Municipality
for the tOUI of their game reserve and bird sanctuary. the
South African irOD and Steel Industrial Corporation (bear),
De Bee.rs Consolidated Mines Limited nl Kimberley, the
Nationailnstitule for Metallurgy, the Nnlio nal Parks Board
(KrugeL' Game Reserve), the Palaboro Mining Company
and the Highvehl Steel and Vanadium Corporation. We are
grateful to the staff of these organiz.'ltions and all the many
others who assisted in the arranging of these functions and
tours.
That the Symposium was a success was to a large extent
the result of the generous financial support which was
received from a number of organizations and compaoies.
These have our thanks as also do South Afrkan Airways
and the South Mrican Railways Tourist am'! Travel Bmeau
whose assistance in arranging transport And accommodation
was invaluable. The Wanderers Club provided an admirable
veoue and excellent facilities which contributed much to our
enjoyment. The computerized registration facilities arranged
for us by IBM were gready appreciated, and we are much
indebted to their :;taff who wrote the programs and operated
the equipment.
I have to thank also the Organizing Committee for the
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enthusiasm with which they set about the preparation for
the Symposium and for their assistance io ensuring that it
would be a success when once it got under way. Special
mention must be made of the Technical Programme and
Editorial sub-<:ommitlees. and those who looked after
management, transport. audio-visual aids, local visits, the
symposium dinner and the venue arrangements. The
Organizing Committee received a great deal of invaluable
support and assistance from the South African Council for
Scientific and Industrial Research in the planning, organiza~
tion a.nd running of the symposium. The staff of the South
African Institute of Miniog and Metallurgy did yeoman work,
as also did many voluntary wo rkers fro m the various mining
groups, not least my overworked secreta ry. The Ladies
ComruiUee received much praise for their inlerestillg ladies
programme, which, on a number of occasions, drew away
a number of male delegates. A particular word of thanks
is due.to.-oureditor.s· and .pFinter& wAodid afl. exJraer.fiina.-fHy
good job in providing pre-prints of all the papers before
the start of the symposillm, and have now put together
this vohmle. There is one group we <.-'Ould not have done
without. I refer to our authoB. We appreciate the amount of
work they d id iD preparing their papers, and in coming to
Johannesburg to preseot those papcn. In many cases Uley
travelled long distances.
Last but not least, I wish to thank our keynote speaker,
the chairmen of the various sessions, their rapporteurs, and
all the members of the discussion panel for their contribution
and assistance which added so much to the programme and
ensured the smooth nmning of the symposium.
We were greatly encouraged by the SLlCceSS of this Tenth
Symposium and trust that our contribution to the series
has helped the American co-spoJ\SOr"$ to justify turning the
series inlo an international evenl. and tbat Ulis trend will
continue. We know that a number of other countries arc
kccn to participate iD this unique set-up, whereby the five
American co-sponsors, with no fomml organization, arrange
for sponsors to organize symposia as they see fit. We in
South M rica look forward to being able to attend future
symposia in various parts of the world .
P . W. J . VAN R ENSRlIRG
1st December, 1972

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