Issuu

www www.miningne.ws

THE KNOWLEDGE YOU NEED

Service & Supply Chain

Winne of the 2010 PICA Winner Cover of the Year - B2B Publishing MEDIA

ining FROM THE INDUSTRY EXPERTS

Excellence

Evolving industr y trends and outlooks

MANITOU's winning formula UNDERGROUND MULTI-PURPOSE VEHICLES ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 1 • January 2012

CONTENTS

T H E K N O W L E D G E YO U N E E D

ining

January 2012

FROM THE INDUSTRY EXPERTS

www www.miningne.ws

THE KNOWLEDGE YOU NEED

Service & Supply Chain

Winner of the 2010 PICA Winne Cover of the Year - B2B Publishing MEDIA

ining FROM THE INDUSTRY EXPERTS

Excellence

Evolving industr y trends and outlooks

ON THE COVER

Manitou South Africa

looks to expand its multi vehicle underground range P4

MANITOU's winning formula UNDERGROUND MULTI-PURPOSE VEHICLES ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 1 • January 2012

EDITOR’S COMMENT

ENDURANCE: The key to surviving 2012

PREMIUM LISTINGS

Service and supply chain supporters

ENGINEERING AND INFRASTRUCTURE

6 9

Engineering African business models Listings

ENVIRONMENT

10 13

Cleaning up the future and the past Listings

ESSENTIAL COMPONENTS

A call for improved efficiency, operation and longevity

Listings

HEALTH AND SAFETY

23 26

Government calls for greater commitment Listings

HEAVY EQUIPMENT AND SERVICES

28 29

Heavy acquisitions Listings

IT AND COMMUNICATION

An overview of IT in mining in 2011 and the near future

Listings

LEGAL AND FINANCIAL

40 42

Insurance: An essential in risk management Listings

MINERALS PROCESSING

44 47

A call for improved efficiency on a larger scale Listings

Inside Mining | Service & Supply Chain Excellence 2012

EDITOR’S COMMENT Publisher Elizabeth Shorten Editor Laura Cornish laura@3smedia.co.za

ENDURANCE:

Creative Chief Executive Frédérick Danton Senior designer Hayley Moore Mendelow

The key to surviving 2012

Sub-editor Patience Gumbo Marketing Manager Martin Hiller Production Manager Antois-Leigh Botma Production coordinator Jacqueline Modise Financial Manager Andrew Lobban

What does the year 2012 hold in store for us? Unfortunately, this is the question most of us are asking as we wait with baited breath and watch for the potential European financial crisis to ‘strike’, or ‘evaporate’.

Administration Tonya Hebenton Subscription sales Nomsa Masina Distribution coordinator Asha Pursotham Printers United Litho Johannesburg Tel: +27 (0)11 402 0571

___________________________________ Advertising Sales

Stacey Glad

Bail-outs, debt write-offs and measures to stabilise European currencies have been extensively implemented, but uncertainty still remains high as the impact of another financial crisis is certain to hurt everyone’s back pocket. Despite the mining sector’s robust and versatile nature, it will not escape the blow of another global economy slide, although its ability to endure hard times is somewhat protected by long-term business models. Regardless of the global economic situation, the demand for commodities is ever present, and as particular commodities move towards ‘supply deficits’, prices and demand will be positively influenced. My objective for the 2012 Inside Mining annual is to present my readers with a comprehensive overview of the larger industry sectors, speak to industry experts, and based on their perspective, generate insightful articles regarding expectations and emerging trends for the next 12 months – whether we are hit with a financial crisis or not. Most mining houses successfully secured finance since the worst effects of the first recession lifted, and I therefore do not foresee any major projects being mothballed again. Let’s hope my positive outlook is not inaccurate. A healthy mining industry translates to a healthy service and equipment supply chain. Service & Supply Chain Excellence - 2012 not only provides you with what to expect from our major industry players, but also includes a list of the most prominent companies relevant to each category. This is an annual truly worth keeping on your bookshelf until the end of the year. Hopefully I have successfully conveyed to you, what I have learnt myself –that the

Tel: +27 (0)11 467 6224

necessity for service and product suppliers to adapt to the evolving needs of the mining world is becoming increasingly vital! Energy efficiency has become critical, and a core focus issue - from the engineer designing or upgrading a plant to the components and products the plant incorporates to ensure an operation runs as efficiently as possible. Competition amongst large-scale and smallscale players is evident, and the solution is ‘fight or flight’. Never have I seen such competition between major earthmoving companies, but activity, or talk of activity in the sector is rife! It also seems that government is becoming increasingly proactive in unyielding when it comes to meeting environmental, health and safety regulations. No matter the global financial circumstanccircum mstances, the miningg industry always seems to ‘pull ull through’ just a little bitt better than most other industries, and I consider der myself fortunate to be an indirect part of the he most resilient and evolving ving sector across the globe. be. From myself, elf, and the rest est of the Inside de Mining team, m, we wish alll our readers a fulfilling and successful 2012.

Inside Mining | Service & Supply Chain Excellence 2012

Cell: +27 (0)83 567 0073 stacey.glad@lantic.net ___________________________________

MEDIA

No. 4 5 Avenue, Rivonia 2191 th

PO Box 92026, Norwood 2117 Tel: +27 (0)11 233 2600 Fax: +27 (0)11 234 7274/5 www.3smedia.co.za ___________________________________ Annual subscription:

South Africa: R350.00 (incl VAT & postage) SADC countries: US$ 80 US$ 100 Foreign: U ISSN 1999 1999-8872 Inside Mining Copyright 2012. All rights reserved. ___________________________________ __________ All material materia in Inside Mining is copyright protected aand may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributor contributors do not necessarily reflect those of the th the publishers.

PREMIUM LISTINGS

SERVICE & SUPPLY CHAIN SUPPORTERS Company

Telephone

Website

Page

Manitou South Africa

011 975 7770

www.manitou.co.za

BME

011 709 8765

www.bme.co.za

Inside front cover

Husq Hu sqva qvarn rnaa SA Con onst stru ruct ctio ion n Pr Prod oduc ucts ts

033 846 970 700 0

www ww w.hu husq sqva qvarn rnac acp p.co com m

Insi In side de bac ackk co cove verr

Centennial Trading g T/A Discoveryy Drilling g

014 573 3666

www.discoverydrilling.co.za y g

Buckman Laboratories

031 736 8800

www.buckman.com

Page g 12

Doculam

011 888 5110

www.doculam.co.za

Page g 22

Du Pont Southern Africa

012 683 5023

www.dupont.com p

Page g 25

Duys y Component p Manufacturers

031 713 1700

www.duys.co.za y

Page g 17

Emerald Risk Transfer

011 658 8200

www.emeraldsa.co.za

Page g 43

Ergomax g

011 312 3710

www.ergomax.co.za g

Page g 27

iNHEMACO SA

+41 22 311 2900

www.inhemaco.com

Page g 26

Komatsu

011 923 1000

www.komatsu.com

Loesche South Africa

011 482 2933

www.loesche.com

Pilot Crushtec

011 842 5610

www.pilotcrushtec.com p

SA Earthworks

011 314 2446

www.saearthworks.co.za

Page g 35

Vital Engineering g g

011 898 8500

www.gratings.co.za g g

Page g 19

Weir Minerals Africa

011 617 0700

www.weirminerals.com

Page g 46

Outside front cover

Outside back cover

Page g 30-31 Page g 47 Page g 32 & 33

Inside Mining | Service & Supply Chain Excellence 2012

COVER STORY MANITOU SOUTH AFRICA’S

Underground multi-purpose vehicle Manitou South Africa, one of the largest multi-purpose utility surface and underground vehicle and equipment providers to the local mining industry, is working towards expanding its underground equipment range – an area which MD, Lindsay Shankland, believes holds massive growth potential.

ne of the core key successes to Manitou’s business is its constant dedication to evolving its equipment/vehicle line and enhancing its product range to best suit its clients’ needs. It is furthermore driven to constantly identify new market opportunities which hold promising growth potential. “We have been supplying our underground telescopic utility vehicles to the local mining sector for about nine or 10 years now and believe we have 100% of the market share on our underground vehicle materials handling range,” says Shankland.

The popularity of the telescopic utility vehicle is its versatility. It is designed to accommodate a variety of attachments, such as forks, tyre handlers, buckets, etc. And while the mining industry in general is benefiting from high commodity prices, Manitou is keen to maximise on associated business opportunities. This will likely see its current 45% mining-related business grow as well. Considering Manitou South Africa first started supplying mining equipment around 2001, its substantial presence in the industry in such a short space of time is a remarkable achievement.

Inside Mining | Service & Supply Chain Excellence 2012

ABOVE Manitou’s approach to extending its underground range is a strategic growth focus Its approach to extending its underground equipment range and exposure is two-tiered. “The first leg of our underground growth strategy has already started - exporting the machines to the rest of the African continent and beyond. We have already delivered a few tyre-handling vehicles,” Shankland notes. To date, Zambia and Namibia mining operations have acquired Manitou underground machines, although the company

In each issue, Inside Mining offers advertisers the opportunity to promote their company’s products and services to the appropriate audience by booking the prime position of the front cover which includes a two-page feature article. The magazine offers advertisers an ideal platform to ensure the maximum exposure of their brand. Please call +27(0)11 465 5452 to secure your booking.

COVER STORY

winning formula already has greater African exposure in Botswana, Mozambique and Zimbabwe through its surface vehicle ranges. “Our second intention is to launch new underground products. We are currently in pilot project testing phase with some, which will hopefully be introduced into the market this year.” There are also plans to introduce the GEHL skid steer loader range into underground soft rock applications as it is ideally suited to coal operations because of its extensive flameproof features. With the expectation that Manitou South Africa’s export business stream will further grow its mining (underground) business, it will emerge as the international group’s mining ‘centre of excellence’ hub – even though France has started working on growing a more global mining business. Internationally, Manitou is headquartered in France, and is best recognised for its rough terrain forklift and comprehensive range of materials handling and lifting equipment. In 2010, Manitou established an international mining club which will gather once a year in a different location across the globe. Their first meeting was at Electra Mining in 2010, and the next will be at the Las Vegas MinExpo. The club will collectively see senior mining professionals from within the industry, gather to discuss issues and

trends in the industry and supply insights from which Manitou can learn and further develop its product ranges. The company also displayed its soft (coal) and hard rock underground machinery at the AIMEX mining exhibition in Sydney, Australia in September 2011, which were well received. Looking at its activity in the mining arena in 2011, the company introduced three new handlers to its product range: a cylinder handler, a wheel motor handler and a strut handler. As with all of Manitou’s attachment pieces, all three handlers can be fitted to one machine, meaning time wastage is reduced by between 50% and 60% and safety is dramatically improved. “We are constantly looking at new methods of handling, cleaning and improving safety,” Shankland states. Its heavy focus on the underground mining market has not detracted Manitou South Africa, which has its own research and development (R&D) facilities, from introducing and incorporating new vehicle attachment elements and upgrades to its surface range. The company is also continually designing new tyre handlers to accommodate larger trucks on mining sites. The final, and equally important, leg of Manitou’s business development plan

is its maintenance and after-sales service. “We are dedicated to servicing our equipment for our clients and providing immediate service assistance when required. Our spare parts facility is properly stocked and managed at all times,” Shankland concludes.

The Manitou underground range: Manitou utility vehicles for hard rock mining: • Manitou stocks a wide variety of machines suited to hard rock mining applications. • Its brake systems are able to stop machines safely on slopes of 17 degrees, with a friction co-efficient between the wheels and road surface of no less than 0.3 • Fitted with spring applied hydraulic release braking on all four wheels • Mantis roof bolter and drill rigs are locally designed in conjunction with JIC Mining. These Maniscopic-based machines are very compact in relation to conventional drill rigs, can be fitted with a single or double drill rig and offer significant savings in fuel consumption and maintenance costs. Flameproof utility vehicles for soft rock mining • With its flameproof vehicle range, Manitou is setting the bar on underground materials handling solutions for applications in fiery coal mines. The machines comply with IA SABS M/V 365 fireproof specifications and are safe to use in explosive environments.

ABOVE The Manitou Mining Club has been established as a global initiative to continuously develop the Manitou product range to suit the requirements of the mining industry Inside Mining | Service & Supply Chain Excellence 2012

ENGINEERING & INFRASTRUCTURE ADAPTING AND EXPANDING

Engineering African business models Most companies in the engineering project house sector would say that 2011 left the dregs of the recession behind it, bringing with it a renewed sense of hope, improved work opportunities and project revival.

Inside Mining | Service & Supply Chain Excellence 2012

ENGINEERING & INFRASTRUCTURE

o a large extent, this is probably true. Many mothballed projects put on the shelf during the global financial crisis, have been, or are currently being reviewed and resurrected. But the economic downturn has left a permanent mark or scar on the sector at large, directly impacting every associated industry.

End-of-year commodity prices are off their peaks, but remain buoyant. Even gold, which so nearly reached the $2 000/ oz mark, is holding steady between $1 600 and $1 700/oz. As a mining editor, or industry on-looker, it is very apparent that the engineering sector has emerged from the financial crisis – evolved and carrying new company strategies and philosophies about their positions in industry and their associated service offerings. Generally speaking, engineering project houses can be divided into three categories – large-scale local project houses, their smaller scale counterparts and an increasingly growing international group of engineers vying for African projects. So, while the number of companies competing for the same project work is escalating, their approaches are more competitive and bring more to the table. The country’s locally-founded, large-scale engineering project house, TWP’s strategy is to be recognised as one of the biggest international companies, with the capability to take on projects worth billions. It has an office in Australia and South America, where it is bringing underground mining skills to a country with an industry that is evolving from one of typical open cast mines to underground extensions. Its merger with one of South Africa’s largest construction groups, Basil Read, is

expected to see the company’s diversification strategy emerge. “In a short space of time, our focus on infrastructure and energy has already seen us expand our skills repertoire,” says TWP Holdings’ Digby Glover. New African mining projects rely heavily on surrounding infrastructure, like roads, housing, etc. What TWP is offering is the entire skills set – from plant and mine development to the ancillary infrastructure required to see it develop feasibly. The company has also added its skills to the project value chain and now offers clients ‘own-and-operate’ services. Like TWP Projects, DRA’s strength and size in the market has seen it gain Anglo Tier 1 engineering, procurement and construction management (EPCM) status in southern Africa. This followed a stringent pre-selection process in line with Anglo’s global initiative to transform its procurement and supply chain operations. Tier 1 involves supplying EPCM services at the highest level for major mining projects. TWP Projects and DRA Minerals Projects are two of only three EPCM service providers selected for this region. The framework contract was signed in London on 3 November 2010. “This kind of framework agreement allows strong partnerships to develop in a far more effective way than through the

Many mothballed projects put on the shelf during the global financial crisis, have been, or are currently being reviewed and resurrected

Inside Mining | Service & Supply Chain Excellence 2012

ENGINEERING & INFRASTRUCTURE traditional per-contract agreements. It’s an extension of a concept pioneered by Vhumbanani Projects, our 50/50 joint venture business with DRA Minerals Projects, which was established to service Anglo Platinum’s concentrator plant expansion programme,” Glover explains. “TWP has a long track record with Anglo American, especially with Anglo Platinum. It is understood that the ‘One Anglo’ initiative will allow TWP greater exposure

design, engineering, commissioning and, in certain cases, operation of over 400 million tonnes per annum of China’s coal processing capability over the last eight years, accounting for in excess of 21% of the installed capacity in China. The transaction has led to a merger of capabilities between ProMet Engineers Africa and Dadi Engineering of China, bringing large scale Lump Sum Turn Key (LSTK) capabilities and global efficiencies.

For smaller-scale project houses, who remain dependent largely on work emanating from the junior and mid-tier mining sector, projects remain tight to other areas of the Anglo American portfolio, such as coal and iron ore work,” he continues. TWP Projects is the largest subsidiary in the TWP Holdings group. While this agreement does make it difficult for smaller scale project houses to compete for work with one of the largest mining houses in the country, they too are, in many instances, evolving their own business strategies and business models to increase their competitive edge. One of China’s largest and most respected engineering groups, Dadi Engineering Development Group, late last year acquired a stake in a local project engineering firm, ProMet Engineers Africa. The Dadi Engineering Development Group has been specifically involved in the

The company, now known as ProMet Dadi Africa, shortly after inception, won a contract for the engineering and procurement portions of a major gold mine in Kyrgystan. The new capability of ProMet Dadi Africa brings over 2 000 project managers, master and professional engineers to bear on mining projects within the African marketplace. ProMet Dadi Africa now has the ability to undertake LSTK contracts of up to US$300 million directly on its combined balance sheet. In an EPCM environment, the western management processes will allow utilisation of the full engineering capability across disciplines for global clients. “With an increasing Chinese investment level in African-based resource projects, familiarity with a significant Chinese

Inside Mining | Service & Supply Chain Excellence 2012

capability and marketplace is becoming ever more necessary. Africa has long been a leader in project execution, management and engineering, and this development allows ProMet Dadi Africa to truly bring global efficiencies to projects in a wellmanaged and structured manner,” says Promet Dadi Africa MD, Rob Bennett. “We have already seen projects that are struggling to pass the hurdle in higher cost environments become re-invigorated by this approach, bringing significant savings on capital as well as in project execution times.” For smaller-scale project houses, who remain dependent largely on work emanating from the junior and mid-tier mining sector, projects remain tight. Many juniors are hand-cuffed by a lack of finance and continue to exist from hand to mouth. Directors at Paradigm Project Management (PPM) believe that mining houses are so averse to risk that they award smaller EPCM service providers with upfront concept and feasibility study contracts and then award the construction portion of the contract to a large-scale engineer. PPM was responsible for ensuring that the AK6 diamond project in Botswana was a viable project – through a revised feasibility and process design – but was not awarded the contract to build the plant. Fortunately, the mining world is relationship-driven and the number of new projects is continuously increasing, meaning that there should be enough pie for every company to share in.

LISTINGS

ENGINEERING ENGINEERING AND PROJECT MANAGEMENT T CONSULTANTS ADP Projects Arcus Gibb Aurecon Basil Read Bateman Engineering (acquired by Tenova Pyromet) Clyde Materials Handling Africa CNC Design Consultants Consulmet EHL Consulting Engineers Ekato Group Engineering Top Tech Entramarc FLSmidth G&H GKD-Buismet Goba Grinaker-LTA Group Five Hatch g Hytec Engineering K’En K’ Enyu En yuka yu ka K’Enyuka luee En lu Engi gine gi neer ne erin er ing in g & Co Cons nsul ns ullting LC B Blue Engineering Consulting M rr Mu rray a &R ay ober ob erts er ts C emen em enta en tatition on Murray Roberts Cementation Mine Mi nera ne rall Re ra Reso sour so urce ur ce D evel elop el op pme m nt Mineral Resource Development Ou utote t c RS RSA A Outotec Paradi Pa radigm ra digm P di ro oje ject ct M an nag agem emen em entt (P en (PPM PM PM) M) Paradigm Project Management (PPM) Polyysi Poly sius sius us Polysius Roym Ro ym mec e T e hn ec h ol olog ogie og i s ie Roymec Technologies RSV RSV R V En RS nco o RSV Enco RS SV Li L imi m taada mi da RSV Limitada RS SV SA SA RSV S ndvi Sa ndvi vikk M Ma ate teri r al alss Ha Hand n liling nd ng Sandvik Materials Handling S dg Se d ma m n Sedgman SEN SE NET T SENET Sh haf aftt S Si ink nker es er Shaft Sinkers Tu urg rgis iss C onssu on sultin sult ng Turgis Consulting T P Pr TW roj o ects TWP Projects Whititeh Wh eh hou ouse see P ro roje oje ject ct ct Whitehouse Project

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www.adpprojects.com www.gibb.co.za www.aurecongroup.co.za www.basilread.co.za www.bateman.com www.cbz.co.za www.cdcza.co.za www.consulmet.com www.ehl.co.za www.ekato.com www.ett.co.za www.entramarc.co.za www.flsmidth.com www.ghcc.co.za www.gkd.co.za www.gobaa.c .co. o.za o. za www.goba.co.za www.grin nakkerr-l - ta ta.c .com .c om www.grinaker-lta.com w ww www. ww. w.g5 g5.c g5 .co. .c o.za o. za www.g5.co.za w ww w.h .hat atch at ch.c ch .cco. o.za z za www.hatch.co.za w ww w.h .hyh yhol yh old. ol d.co d. co.zza www.hyhold.co.za w w. ww w.ke keenyyuk uka. a co om www.kenyuka.com w ww. w.lc lcc.ccom m.a .auu www.lc.com.au www. ww w mu m rr rrob ob.c .ccom www.murrob.com www ww w.mr w. mrde dev. de v.co v. co.z .zza www.mrdev.co.za www ww.o .out .o out utot otec ot ec.c ec .com .c om www.outotec.com w ww.p ppm pmaf affri afri rica ca.cco. o.za o.za www.ppmafrica.co.za www. ww w poly lysi sius u .co. o.za za www.polysius.co.za www ww.r .rroy oyme mec. me c.co com co m www.roymec.com w ww w.rsv s .co.za www.rsv.co.za www.rsve ww venco. o co c m www.rsvenco.com www ww w.rs rsve venc nco o.co com m www.rsvenco.com www. ww w rs rsv. v.co v. c .z co .za/ a/rs a/ rsvs rs vsaa vs www.rsv.co.za/rsvsa www. ww w sa w. s nd dvi vik. k co k. c m www.sandvik.com www ww.s .sed .s edgm ed gman gm an.c an .com .c om www.sedgman.com w w .s ww .sen en net e .cco..za z www.senet.co.za w ww.s ww .sha .s haft ha ftsi ft sink si nker nk ers. er s.co s. co.z co .za .z za www.shaftsinkers.co.za w ww w.t .tur urgi ur gis. gi s co s. co.z .zaa .z www.turgis.co.za www. ww w tw wp. p.co o.zza www.twp.co.za www. ww w.wh w. whititeh wh eh hou o se sesa sa.cco. sa o.za o.za za www.whitehousesa.co.za

CONSULTING C ON NS SU U LT T IN ING A & B Gl G Glob Global lob obal al M Mining inin in ing in Badg Ba dger dg er M in nin ing ng & Co Cons nssul ultitit ng Badger Mining Consulting Coff Co ffey ff ey M inin in ing in g SA S Coffey Mining Core C onsu on sultltltan su a ts an Core Consultants Delo De loitititte lo te M inin in ing in g Co Cons nsul ns u tit ng ul n Deloitte Mining Consulting And Ad Advi viso vi sory so ry And Advisory DuPo Du Pont Po nt d N mo our u s South Africa DuPont dee Ne Nemours Gemc Ge m o mc om m Afr f ica Gemcom Africa Geological Consultants e Jeffares & Green JMA Co C nsul u ting JMA Consulting lue Engineering & Cons lu nsul ultiting ng g LC B Blue Consulting M ning Mi ng Con onsu s ltan a cy Service ces es Mining Consultancy Services Minx Mi nxcon Minxcon MR RM Mi M ning ni n Ser ng e vicess MRM Mining Services R ck & S Ro tock to c Investm ck ments Rock Stock Investments Schw Sc hwar a t Gl Glob o al ob a C onsulttin on i g Schwart Global Consulting S ow Sn wde d n SA A Snowden SR RK Cons n ulting n A frric icaa SRK Consulting Africa T rrg Tu giss Con o su s lting g Turgis Consulting

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Inside Mining | Service & Supply Chain Excellence 2012

ENVIRONMENT ENVIRONMENTAL AWARENESS

Cleaning up the future and the past

Environmental awareness has become a priority for mining companies, which are now being held accountable in the highest possible manner for their actions. Compliance with environmental regulations will hopefully look after the future, but amending the past is a little more complicated. Rehabilitation and upfront compliance Environmental Management Programmes (EMPs) and Environmental Impact Assessments (EIAs) are compulsory regulatory requirements. They have the power to determine whether a new project is viable or not, or influence an entire mine or plant development plan and design. While many of the major mining companies have in-house divisions specifically focused on taking care of environmental issues, the trend to sub-contract these tasks and responsibilities to external professional consultants and companies is increasing. The core business for mining companies is mining. To ensure their environmental responsibilities are properly prioritised, these mining companies hand these responsibilities over to companies that will ensure they are managed and handled responsibly. Investing in rehabilitation programmes is also non-negotiable, and preparation for mine closure must be financially and operationally accounted for, and also

approved by the Department of Minerals and Resources (DMR). Some mining companies, for example major coal and mineral sands company Exxaro, are leading the way into the future through their current actions. Even though its Hillendale minerals sands mine in Richards Bay will only close at the end of 2012, its rehabilitation programme is well underway. All major open cast areas mined on the property have been stripped, a specially blended soil mix foundation laid and planting preparation begun for the final product, sugar cane, which the land was originally used for. In November 2011 Exxaro had spent R425 million on rehabilitation activities, with an additional R104 million set aside. Trevor Arron, executive GM for the Hillendale mine, believes that Exxaro will be the first mining company to own a rehabilitation mining closure certificate once the programme is complete. Exxaro is replacing its Hillendale operation with a new Greenfield project, called

Inside Mining | Service & Supply Chain Excellence 2012

Fairbreeze, situated just south of Mtunzini, whose construction start remains dependent on certain environmental approvals. “We have learnt a lot from our rehabilitation experiences at Hillendale and plan to mine, back-fill and rehabilitate from mining commencement at Fairbreeze,” Arron points out.

Water: a precious commodity The re-use of recycled water within a mining operation is a widely adopted practice. There remains however a significant amount of waste water returning to natural water systems. The general population has cast its spotlight on the gold industry, which remains severely criticised for South Africa’s severe acid mine drainage (AMD) crisis. Historical decommissioned gold mines across the Witwatersrand basin have resulted in a build-up of toxic and highly acidic water levels, which are slowly seeping from old underground shafts and stoping levels to surface. Water specialists in the sector believe

ENVIRONMENT

the problem can be easily solved and the technology needed to desalinate the AMD water is not difficult to apply. The problem lies in the capital required to construct a plant capable of processing the water, and furthermore, who will be using it once it is cleaned. The cost to generate potable water from AMD is expensive. Ultimately, a solution will have to be found, and time is no longer a luxury. The issue of waste water extends beyond the gold sector. AMD is also a severe problem in the coal sector, largely the Highveld coal fields. “Unlike deep-level gold mining, coal mines are mostly open-cast and shallow underground operations, making contaminated water easier to control. However there is less responsibility in this field of mining,” Rudy Boer, MD of Ferret Mining and Environmental Services says. The Department of Water Affairs (DWAF) is proving however that it will not tolerate non-compliant environmental irresponsibility. DWAF suspended Coal of Africa’s water use licence for its coal mining operations in Limpopo in the latter half of 2011, following suspicion that the company’s actions were non-compliant with the necessary water regulations. It has since lifted the suspension. When the water use licence was first issued, the department (according to an

official statement) “considered carefully all aspects relating to the use of water for the purpose of mining activities and the related impact on water resources.” According to DWAF, before mining operations could commence: • A mining plan showing areas where mining will take place so as to protect the Limpopo River and all its remaining tributaries that have not yet been impacted negatively by activities undertaken prior to authorisation is required. • A plan showing all alterations of water courses, impeding and diversions of flow of all tributaries away from affected areas (to minimise pollution impacts) is also required. • A plan of action showing measures to be undertaken to rehabilitate the three already negatively impacted tributaries is needed. • In addition, the mine is further required to establish a monitoring forum which includes water specialists, interested and affected parties, civil society and local government. This forum must meet regularly and is expected to continue to be in force as long as it is necessary. The outcome of the meetings of the forum will form part of the quarterly reporting to the department as per license stipulation. In July 2011, the deputy ministers of

Water and Environmental Affairs, Rejoice Mabudafhasi, and Defence and Military Veterans, Thabang Makwetla, issued a stern warning to Shanduka Coal Mines in Middleburg, Mpumalanga, to comply with government regulations on the environment and the National Water Act or “face the music”. The warning came after the two deputy ministers visited the mine plants and found that the operation of Shanduka’s two subsidiaries violated the basic rules of environment and did not have a water use license. It was also discovered that the two plants polluted a main road that passes through them by littering coal dust on the road. At a meeting with Shanduka management, the deputy ministers also warned the mine owners against operating their plants without a proper hazardous waste management policy which they said could lead to a health risk for the nearby community. Mines are clearly being held accountable for their actions, and in severe cases, have had to suspend mining activity until they resolve their problems or provide government with clear-cut answers. All used mining water, regardless of commodity, contains toxic materials and heavy metals. Companies must invest in process technology to clean their water to acceptable standards, as regulated by government, before it is returned to natural water sources.

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Mine our chemistry for all it’s worth Boiler water

Service water

Cooling water

Smelting and reﬁning

Inﬂuent, efﬂuent, and process water

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Commitment makes the best chemistry.

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Inside Mining | Service & Supply Chain Excellence 2012