Investigating Gold Loss in Mining Operations – Critical Role of Surveyors
Gold loss in mining operations is an issue that not only affects the profitability of mining companies but also undermines the efficiency of entire value chains.
By Ryan Chigoche
According to Jeremiah Gasitende, Vice President of the Association of Mine Surveyors of Zimbabwe (AMSZ), addressing this challenge requires a comprehensive and systematic approach.
Speaking to Mining Zimbabwe at the recent AMSZ conference, Gasitende highlighted the critical role of surveyors in tracking and verifying gold within the mining process to prevent financial losses and improve operational performance.
“The responsibility of surveyors is to ensure that we check the mine’s value chain, including all accounting processes,” said Gasitende. “This ensures that when you calculate your mine coefficient factor (MCF), it provides indicators of whether you’re losing gold or gaining gold.”
For mining companies, the MCF is a key metric used to measure how effectively gold is being recovered. An MCF of 100% indicates perfect recovery, meaning all mined gold has been accounted for. However, achieving 100% is rare, with a target range of 85% to 90% often deemed acceptable.
Gasitende stressed that an MCF significantly below this range signals a problem.
“If the MCF falls below that range, it means there are issues, and most likely, you’re losing gold somewhere,” Gasitende explained. “A low MCF means the company is losing money. If you’re losing gold, you’re losing money, and that’s something we cannot afford.”
Common Sources of Gold Loss
Gold loss can occur at various stages of the mining process, from extraction to processing. Gasitende explained that identifying the sources of these losses is crucial.
Common causes include errors in metallurgical accounting, where gold content may be underreported, and unaccounted gold left underground due to incomplete extraction techniques. A significant area of concern is the tailings dam.
“You’ll often find that a lot of gold ends up in the tailings dam,” he noted. Surveyors can take samples from tailings to verify whether the declared gold content matches the actual amount present. Such investigations help pinpoint where losses are occurring and enable corrective actions.
Another challenge is gold remaining underground in areas that are difficult to access.
“Sometimes, gold remains underground simply because it’s not reachable by conventional methods,” Gasitende said. “In such cases, the mine is essentially leaving gold behind, which drives down the MCF and contributes to financial losses.”
Technology: A Game-Changer
One of the most promising solutions to combat gold loss is integrating new technologies. With advancements in mining tools such as drones, scanners, and remote sensing devices, companies can better monitor and assess areas previously inaccessible. These technologies enhance gold tracking and help identify additional extraction opportunities.
“Technology is a game-changer,” Gasitende affirmed. “With technology in place, you can send scanners or drones to areas that are difficult to reach. They can detect ore sitting somewhere, and you can then plan to recover it.”
For instance, drones equipped with high-resolution cameras and sensors can survey mining sites and provide data on ore quality and location. Similarly, 3D scanning technology creates detailed maps of underground ore bodies, enabling miners to target previously overlooked deposits.
Furthermore, automated systems improve metallurgical accounting by providing real-time data on gold quantities during mining and processing. These systems track gold from extraction to refining, reducing the chances of misreporting or losses during processing.
A Holistic Approach
Gasitende emphasized that reducing gold losses requires a “holistic approach” to the entire mining process. This involves optimizing every step, from mining to processing and final accounting.
“You need to check the value chain, area by area, to stop those losses,” he said. “Surveyors are the custodians of that process, ensuring we keep track of every ounce of gold mined. It’s our job to make sure gold is accounted for and there’s no waste.”
The mining sector must prioritize these checks and embrace modern technology to minimize gold losses. By combining diligent investigations with advanced tools, companies can significantly enhance gold recovery processes and improve financial performance.
As Gasitende concluded, “Mining companies must dig deeper into these issues. A low MCF means a loss of money, and we must do everything we can to ensure that doesn’t happen.”
Incorporating better tracking and technology not only helps recover lost gold but also ensures companies remain profitable and competitive in an increasingly challenging market.