Abstract
M.Com. (Business Management)
South-Africa's market share in gold produced dropped from 80 percent in 1980 to
about 34 percent currently. This is due to entrance of cheaper producers of gold on
the world market. The USA is our main competitor with a market share of about 17
percent. The difference is that South-Africa's remaining reserves is deep below
surface and the USA are using open pit techniques to mine cheaply. In order for South-Africa to stay competitive and win back the lost market share it will be necessary to utilise the current available ore resources to it's full potential. This will also create new jobs in a South-Africa that needs it desperately. The calculation of the pay limit is investigated and found to be adequate. The different types of pay limits and their usage was explained. It was found that the current method, of using the pay limit directly as a cutoff limit, was incorrect. The use of a proposed pay limit was suggested. The definition of the proposed pay limit is slightly different than the current pay limit changed in order to clarify the correct use of the pay limit. The inadequacies of the pay limit was recognised and explained. A new term in gold mining was formulated namely the optimal limit. The purpose of this cutoff limit is to determine the cutoff value at which the resultant grade will be such that the mine's profit will be maximised over the long term.
The combined usage of the proposed pay limit and the optimal limit in order to manage the ore resource, was described. This method of ore resource management is easily understandable, easy to use and addresses the inadequacies of the current pay limit successfully.