Mining

Eight new investments are bringing jobs to Limpopo.

Mining companies are increasingly concerning themselves with environmental issues. A R1.5-billion project to improve air quality at Anglo-Platinum’s Polokwane smelter will be finalised in 2020. The Sulphur Dioxide Abatement project will reduce carbon emissions by 96%, create 500 construction jobs and provide contract work for about a dozen Limpopo companies. The smelter is shown in the main picture on this page.

Anglo Platinum’s (Amplats) Mogalakwena mine produced a record 1 170 000 PGM ounces in 2018, an improvement of 7%. The company recorded a number of improvements in efficiencies (operating time of concentrators rose to over 94%) and the company is investigating possible expansion of the mine complex.

The sale in late 2018 of Glencore’s stake in the Mototolo PGM mine and chrome plant marked the end of that company’s foray into platinum. The purchase of Glencore’s 39% stake takes Amplats’ share in the complex

Amplats’ Polokwane smelter has installed sophisticated air-quality equipment.

up to 89%, giving Amplats access to a further 130 000oz of platinum and improving the prospects of working on the adjacent Der Brochen. The deal was worth about R1.5-billion.

Eland mine, after being put on care and maintenance, was sold in

2017 by Glencore to Northam for R175-million. In 2019 plans were being put in place to re-open the mine because of higher prices for rhodium. The company intends spending R300-million at Eland and R1.5-billion at Booysendal.

Impala Platinum (Implats) has an interest in two big operations on the eastern limb of the Bushveld Igneous Complex. Marula (in which Implats is a 73% shareholder) is in Limpopo, about 50km north of Burgersfort. South of the same town, in Mpumalanga, Implats (49%) is in a joint venture with African Rainbow Minerals (ARM) at the Two Rivers mine.

Northam bought the Tumela block from Amplats and invested heavily in a smelter expansion projet at its Zondereinde mine just south of Thabazimbi. By building a second furnace at the facility, Northam is making provision for reaching a goal of processing one-million ounces of PGMs. The cost of the expansion, which was partly born by Heraeus, is R900-million.

Heraeus South Africa has offices in Gauteng and runs a precious metal chemical compounds production and refinery site in Port Elizabeth.

Limpopo contributes 4% of coal mining in South Africa, according to the National Department of Mineral Resources, but it is likely that within the next three decades, the province will be supplying about half of South Africa’s coal. Limpopo’s Waterberg coal field is estimated to contain about 75-billion tons of coal.

This is where Exxaro operates its Grootegeluk mine. Nine plants serve a 4km long and 120m deep opencast mine on a 1 200ha site. Originally intended to supply the nearby power plants, Exxaro is now eyeing the export market with countries such as Ethiopia, Egypt and Pakistan potential markets. By 2023 Exxaro hopes to be producing 60-million tons of coal from its sites in Limpopo and Mpumalanga.

Its current annual production is 47-million tons. New projects

Eight new mining projects in the Capricorn and Sekhukhune districts are expected to attract investments worth R2.5-billion and create about 3 000 new jobs. There are currently 147 active mining projects in the province and the sector contributes 24.5% to the Provincial Gross Domestic Product (PGDP).

According to the Office of the Premier, the number of jobs in the sector increased from 71 000 in 2013 to 103 000 in 2017/18. The soils of Limpopo are rich in platinum group metals, coal, copper, diamonds, gold, iron ore, nickel, rare earth minerals and tin.

Other major investments in Limpopo include an ongoing project by De Beers to convert its Venetia

Selected as one of the “Top 100 Global Inspirational Women in Mining” by Women in Mining UK in 2018, Thabile Makgala was recently appointed to the position of Chairperson of Women in Mining South Africa (WiMSA). Thabile holds the position of Executive: Mining at Impala Platinum but getting to the top was no easy journey. Thabile recalls “numerous obstacles while navigating my mining career path”. Her qualifications include a master’s degree in business administration from the University of Stellenbosch Business School and a Bachelor of Science degree in Mining Engineering (Cum laude), from the University of the Witwatersrand. But as the first female mining engineer graduate at Goldfields Kloof and Driefontein division (now Sibanye Gold), it soon became clear that, as she recalls, “the industry had not adequately prepared itself to accept women in mining”. “The response to women’s needs (infrastructure, personal protective clothing, and policies) was slow and very little was in place to address women’s issues.” Her extensive experience has given Thabile insight into what is needed. “Women and men should hold equal representation in the workplace,” she says, “and mining companies should prioritise and advocate for diversity, inclusion, parity and for greater recognition of female leadership within their organisations.” Thabile is encouraged by progress made by women in mining but wants to see “more deliberate and proactive action”. Her hope is that in 10 years, “the fundamental elements such as empowering, caring, showing respect, connecting and growing our female talent, would have been achieved”. mine from an open-pit mine to a verticalshaft mine, and a multi-billion new platinum mine project led by a Canadian firm. Venetia mine is by far the most important part of De Beers’ South African operation, accounting for 3.1-million of the 5.4-million carats recovered by the company from its six operations.

Ivanplats, the subsidiary of the Canadian company, has started sinking shafts at its new mine near Mokopane south-west of Polokwane. Ivanhoe has a 64% stake in Ivanplats with 10% owned by a group of Japanese companies including ITOCHU Corporation and Japan Gas Corporation.

Mineral beneficiation is a key component of the newly accredited Musina-Makhado Special Economic Zone (SEZ) in the far north of Limpopo.

The De Beers Group’s Venetia mine in northern Limpopo is a giant project in every sense.

In 2018 nine Chinese companies committed to investing more than $10-billion in projects related to the zone’s four main areas of activity: a coking plant, a power plant, an alloy factory and the manufacture of steel.

The planned Tubatse Platinum SEZ will focus on mining, as its name implies. According to LEDA, 17 new mines were established in the greater Tubatse/ Burgersfort/Steelport area between 2001 and 2016, and a further 22 new mines are planned.

Impala Platinum is a major presence in Limpopo.

The focus at Tubatse will be on the beneficiation of platinum group metals, magnetite, vanadium and chrome. The other strong mineral focus in the eastern part of the province is at Phalaborwa where Palabora Copper, a subsidiary of Palabora Mining Company, produces about 45 000 tons of copper annually, most of which is sold domestically. It runs a smelter and a refinery and also mines magnetite, vermiculite sulphuric acid, and nickel sulphate.

Minerals Council South Africa: www.mineralscouncil.org.za Department of Mineral Resources: www.dme.gov.za Geological Society of South Africa: www.gssa.org.za South African Institute of Mining and Metallurgy: www.saimm.co.za

Palabora Copper (Pty) Limited is an incorporated operative subsidiary of Palabora Mining Company (PMC), a copper mine that also operates as a smelter and refinery complex in BaPhalaborwa Municipality, Limpopo Province in South Africa.

The mine is 80% owned by a Chinese Consortium comprising HBIS, Tewoo, General Nice and CADFund through Smart Union Resources South Africa. The rest of the equity is jointly owned by the South African government through the Industrial Development Corporation (IDC), a black empowerment consortium, PMC employees and communities.

Since its incorporation in 1956, Palabora Copper (PC) has been South Africa’s sole producer of refined copper, and the mine produces other by-products such as magnetite, vermiculite, sulphuric acid, anode slimes and nickel sulphate.

Chinese investment

The Chinese Consortium acquired PC in 2013 when PC was facing two possible scenarios: (a) culmination of the life-ofmine and (b) no overhauling of the smelter which was outdated and facing shutdown. The first scenario would have resulted in the loss of employment for more than 3 500 employees (direct and indirect) while the second scenario would have led to the loss of jobs for more than 700 off-stream employees at the smelter.

Soon after the sale transaction, the new owners fostered partnerships between PC and Chinese companies in areas such as economic development, trade, skills and technology transfers to achieve ground-breaking and substantive results in extending the life-of-mine, refurbishing the smelter and building a floatation plant.

To this end, the Chinese Consortium approved R10.4-billion to extend the life-of-mine to beyond 2033, R878-million to refurbish the smelter to ensure that PC continues to produce copper rod, and R199-million to construct the floatation plant to improve copper recoveries, operational efficiencies and to reduce operational costs.

Looking into the future

Palabora Copper is undertaking a life-of-mine extension project known as the Lift II. The project aims to extend the life of the business up to 2033. The project includes the magnetite reclamation and beneficiation study aimed at creating additional revenue from the legacy stockpile. The company committed about R700-million to the pre-feasibility study and approximately R10-billion is expected to be spent throughout the development of the project.

The employer of choice

Since its inception, Palabora Copper has been at the forefront of employment practices in the local mining industry. Palabora, which employs an average of 3 700 employees (Lift I and II) aims to remain industry competitive through its favourable conditions of employment.

This is reflected in the utmost importance with which the safety and health of

employees is regarded in order to remain efficient and profitable as a business.

The company has written and developed its code of ethics to follow strategic imperatives which include: providing a safe and healthy work environment for all employees and contractor employees and practising sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates.

Palabora Copper acknowledges and respects its stakeholders’ interest and concerns, striving to be a leading corporate citizen within the mining industry and supplying a high standard of quality products and services, reliably and responsibly, at national and global level. Palabora Copper is certified as a Top Employer.

For more information: www.palabora.com

Palabora Mining Company is an energy-efficiency leader in the mining sector.

The water quality of the Olifants River (above) and the Selati River are constantly monitored as part of PMC’s Environmental Management Programme.

Palabora Mining Company’s code of ethics includes consideration given to the healthy work environment of employees but also to ensuring that sound environmental man agement is pursued so that the biodiversity of the natural environment in which PMC operates can be sustained for many years to come. These are among the company’s strategic imperatives.

Energy Management Programme

Mining activities are inherently very energy intensive, so PMC launched an Energy Management Programme in 2012 to curb the half-a-billion-rand energy bill which was continually growing. PMC collaborated with a consulting company, resulting in the employment of 12 energy specialists and project managers who would, in conjunction with mining personnel, identify, implement and sustain energy cost-saving projects. As a result, 117 initiatives were identified. Following stringent technical and financial adjudication processes, 31 projects were implemented. Step 1: Identify energy cost-saving opportunities and ideas through data collection and process analysis. Step 2: Scope the ideas in terms of cost and return. Step 3: Prioritise the ideas based on ease of implementation, highest return and least cost. Step 4: Develop an implementation plan for the suite of projects submitted to management and board members for approval. Step 5: Implement the approved plan. Step 6: Continuous measurement and verification of each project’s performance to ensure the sustainability of the programme.

As a result of adherence to the Productivity Approach over the past five years the company has saved R232-million through avoided energy costs. These consist of: • Electricity savings worth R181-million • Coal and liquid fuels savings worth R43-million • Water savings worth R8-million.

With the help of external funding mechanisms worth R28-million the Energy Management Programme had a net benefit of R173-million by the end of July 2017.

Palabora Mining Company’s Energy Management Programme has not only created a sustainable model but has also emphasised the company’s standpoint regarding its environmental responsibility. PMC is now an energy-efficiency leader in the mining sector.

Going green

The company is a certified ISO 14001 business, that subscribes to worldleading practices. Located directly adjacent to the world-renowned ecotourism attraction, the Kruger National Park, Palabora Copper coordinates several onsite wildlife management and cultural heritage programmes as part of its ongoing sustainability drive.

Over the past years, Palabora Copper has retained a record of being one of the safest mines in South Africa and Africa. This is particularly due to the stringent SHEQ regulations and procedures in place, and the effective management of contractors on site.

Experience, skill and drive underpin three success stories.

Anumber of highly motivated women are making stellar careers for themselves in mining at PMC and providing inspiration for scores of other women in the sector.

Matsela Ntsepe: Process Engineering Manager Matsela Dolphinah Ntsepe is a chemical engineer with more than 17 years of experience in diamond, coal and copper mining. Matsela is Palabora Copper’s (PC) Process Engineering Manager for the Smelter Retrofit Project, a position she earned through hard work and ascending through the ranks. Matsela started her career as a Metallurgical Trainee and rose through various levels including System Engineer, Refinery Technical Metallurgist, Refinery Technical Superintendent, Concentrator and Magnetite Technical Superintendent and Refinery Operations Manager.

Matsela’s experience in the mining industry embraces equipment evaluation and selection, plant process audits, treatment and optimisation, initiation, implementation and management of processes, maintaining and improving safety and financial and human resources management.

Matsela or “Tsela” serves as the current Chairperson of the Women in Mining (WiM) PC branch and is an Ex-Officio Executive Member in the Limpopo region. In addition, Tsela is a member of PC Transformation Committee and a Trustee of PC Essop.

Matsela holds a National Diploma and B-Tech in Chemical Engineering from Witwatersrand Technikon and a Management Development and Financial Management Programmes from the University of South Africa.

Being able to acquire mining technical qualifications is hard and being a manager in the mining industry is a difficult ladder to climb. Matsela has achieved both while maintaining her humility and promoting the needs of others. Tsela proved that a woman does not need to behave like a man to be smart, support other women and make it in the mining industry.

Matsela Ntsepe: Process Engineering Manager

PHOTO FLURRY PRODUCTIONS PHOTOGRAPHY

As the member of the PC Transformation Committee, Tsela influences and facilitates the direction of PC’s future strategic transformation agenda. This includes recommendations on local economic development projects that take gender mainstreaming and equality into consideration.

Tsela is a finalist for the Limpopo Mine and Safety Council’s Women Achievers Award and the Standard Bank Women in Science Award.

Manyabela Mailula: Manager for Training, Development and Contractor Management At only 35 years of age, Manyabela Mailula has more than 13 years’ experience in technical research and mining in countries such as Turkey, Georgia, USA and South Africa. Manyabela is Palabora Mining Company (PMC) Manager for Training, Development and Contractor Management.

She holds a National Diploma in Metallurgical Engineering from Vaal University of Technology, a BTech in Metallurgical Engineering (Tshwane University of Technology), Honours in Management of Technology (University of Pretoria), a Higher Certificate in Education, Training and Development (University of Johannesburg) and a Work Place Assessor Certificate from the Drum Beat Academy.

Manyabela Mailula: Manager for Training, Development and Contractor Management

Manyabela started her career as a Metallurgical Trainee at ASA Metals (Dilokong Chrome Mine). She joined PMC/ Palabora Copper (PC) as a Smelter Training Officer and ascended to the position of Operational Readiness Manager. Manyabela’s current responsibilities include the development of PC’s training and development strategies, policies and standards.

Manyabela is the Chairperson of Limpopo Region’s Women in Mining. She is Chairperson of Employment Equity Skills Development and serves as the member of the board of Phalaborwa’s Technical and Vocational Education and Training (TVET) College.

Training and development policies influence how the company perceives safety, gender parity and employment equity. Manyabela has used her role at PC to create training materials that allow for gender freedom and flexibility.

Manyabela is a finalist for the Limpopo Mine and Safety Council’s Women Achievers Award and Standard Bank Young Achiever of the Year Award. The latter award is for women who have achieved a lot before the age of 40.

Zani Kutumela: A leader without a title Zani Kutumela, 35, is an author, social activist, motivational speaker and mother. She has a BA Degree in Communications, with majors in English and Journalism, from the University of Johannesburg.

Palabora Copper (PC) employs Zani on a full-time basis as an Administrator for the Training Department. Her work involves interacting with people from diverse social, political, economic and cultural backgrounds. The majority interact with PC in order to get some type of assistance (securing employment or learnership opportunities or a contract). Zani is required to appreciate socio-economic dynamics and balance the socio-economic imbalances which exist in society.

Zani indirectly plays a role in ensuring that PC training, procurement and learnership opportunities are in line with the national transformation agenda and the demands of local communities.

As an author, Zani published a poetry collection titled Re-routing in 2018. Her poems criticise gender- and children-based violence. Other poems in the anthology speak to her love for Africa and pride in being an African. As a social and gender activist, Zani is committed to alleviating poverty and to opposing violence. She has for the past three years dedicated time and financial resources to donating food parcels, sanitary towels, school shoes and blankets to disadvantaged families and children, of which the majority are women. This she achieves by asking for donations, and sometimes by utilising her own limited resources. So far in 2019, Zani has donated 156 pairs of shoes to Zamani Primary School and 46 winter blankets to Phulabyehola Primary School.

Zani has also adopted Thabelang Disability Centre based in Makhushane. The Centre houses 56 physically challenged adults and children from the Phalaborwa municipal area. Zani regularly donates food parcels and her commitment has helped attracted sponsorships: a borehole has been dug and paint donated.

Zani is a finalist for Limpopo Mine and Safety Council’s Best Poverty Alleviation Project Award and Standard Bank Young Achiever of the Year Award.

Zani Kutumela: Social activist and author.

Electrification, water supply and a crèche upgrade are recent projects undertaken by Marula Platinum Mine.

Marula Platinum Mine is 73% owned by Implats and is one of the first operations to have been developed on the relatively under-exploited eastern limb of the Bushveld Complex in South Africa. The mine is in the Limpopo Province and employs approximately 3 500 people. Black economic empowerment forms a key component of the Marula operation, and our partners together own 27% of the company.

Marula’s social investment strategy focuses on addressing the needs identified within its host communities. The mine invests in local socio-economic development initiatives, drives transformation, and engages with community representatives and government officials at all levels. Makgoma Chrome is a joint venture that assists local communities with the extraction and marketing of chrome from tailings.

However, it is through Marula’s core activities – employing people, paying taxes and procuring from host communities – that it makes the biggest contribution to the socio-economic development of the Sekhukhune District and the Limpopo province. Recent initiatives

Water supply: The installation of an electric pump and three JoJo tanks in the Seuwe community in the Mashibiring section. The pump supplies water to 500 households, approximately 5 000 people in the village and a nearby crèche and secondary school. Crèche revamp: Karabo Crèche, an early childhood development centre in Mashibiring, now consists of an office, kitchen, sick bay and three additional classrooms. The donation brings to an end many years of struggles with the daily running of the centre because of limited space and inadequate facilities. Village electrification: The Maahlapa section in Ga-Mashishi Village has been electrified from the proceeds of the chrome project. Phase two of the project will see another 108 houses electrified. Literacy: Ongoing full-time literacy classes are provided at the mine, and Marula invests in skills development through learnerships, short courses and workplace training. Supporting local business: Preferential procurement and investment in enterprise and supplier development provide important opportunities for social and economic transformation. During the 2018 financial year, Marula procured R101-million worth of goods and services from local companies.

Contact: Alice Lourens, Group Head: Investor Relations and Corporate Communication Tel: +27 11 731 9033 Email: alice.lourens@implats.co.za

Gerrie Nortje, General Manager at Venetia Mine, outlines all the steps that are taken to keep miners as safe as possible.

Gerrie Nortje, General Manager at Venetia Mine

Gerrie Nortje began his career with Anglo American in 1997 as a bursar studying Mining Engineering. On completion of his degree, he worked at various Anglo American Thermal Coal operations before becoming Operations Manager at Xstrata. He re-joined Anglo American as a Principal Mining Engineer and transitioned into a Lead Open Pit Mining role during 2014 as a member of the Technical and Sustainability team. At head office he was involved with a variety of projects across the group’s business units.

All mines should be constructed and operated as per the design to eliminate and, where not possible, mitigate risk in every part of the process. Quantifying the risks to which our employees and communities are exposed forms a key pillar in Safety Management. Engineering controls remain the most effective and as a result are the highest on the hierarchy of controls.

At De Beers and Venetia Mine, we pride ourselves in our first value, which is “Putting Safety First”. This means that all our employees and contractors are empowered to work safely, stop unsafe work, withdraw from an unsafe area and escalate any unsafe conditions. This is an expectation from every employee. The safety culture and one of transparency and collaboration is absolutely critical. Not tolerating risk and being unconditional about safety every single day remains paramount in succeeding. Fatigue management is also important.

We have in excess of 20 workstreams focusing on elimination of fatalities. Controls keep people safe and critical controls keep people alive. We are improving all our critical controls and verifications.

Before we talk about successes, we should first reflect on the tragic death of Maggie Semata on 25 March 2018 in the ore-processing plant at Venetia. The loss was devastating for Maggie’s family, everyone at Venetia Mine, De Beers Group and Anglo American. I have taken a stance that no Venetian will lose his or her life ever again.

There is no doubt that Zero Harm is achievable. Some departments at Venetia have never suffered an injury in 27 years since commencement of operations.

Removing employees from harm’s way will remain one of the most effective measures, so yes it will. Mechanisation and automation play a critical role in keeping our employees safe. It also provides opportunities for employees to develop other skill sets.

Project aims to translocate 300 elephants.

The second translocation of elephants from the Venetia Limpopo Nature Reserve (VLNR) in South Africa to Zinave National Park in Mozambique has taken place.

The first herds of elephants made the 1 700km road journey to Zinave in the last week of June 2019. The final herds arrived at Zinave on 11 July, bringing the total number of elephants moved in 2019 to 53.

During the first phase of the project, 48 elephants were translocated. These elephants, moved in family groups, consisted of matriarchs, younger males and females, and calves. Those elephants have been seen integrating with other herds at Zinave and have been thriving with more space and food now available to them.

The translocation is part of a major conservation effort – “Moving Giants” – that aims to move some 200 elephants over three years to secure the future of the VLNR, which was under threat due to too many elephants affecting the broader ecosystem, and to help repopulate Mozambique’s elephant population.

VLNR is partnering with Peace Parks Foundation, a transfrontier conservation organisation whose aim is to re-establish, renew and preserve

large functional ecosystems, and Conservation Solutions, experts in wildlife management whose team manage the challenging logistics and veterinary care of the elephants throughout the process. Peace Parks co-manage Zinave National Park with the Mozambique government and have ongoing responsibility for the wellbeing of the elephants.

Werner Myburgh, CEO, Peace Parks Foundation, said, “The future of the African elephant is bleak in most parts of Africa, except for the southern Africa region where the outlook on their population numbers are stable and even, in some cases, increasing. Zinave National Park in Mozambique is one of these places and brings hope as a new founder population is on the rise.”

Anglo American is backing up its investment in the elephant translocation initiative by providing Peace Parks with a further US$500 000 investment from the Anglo American Foundation to enhance and extend anti-poaching support measures. Peace Parks has been working with local communities to ensure that the introduction of the elephants to the park has a positive impact for their human neighbours.